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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 145
2025-2026
Senators Reynolds, Craig
To
amend sections 9.47, 9.66, 107.03, 107.21, 117.55, 121.02, 121.03,
121.35, 122.01, 122.011, 122.012, 122.013, 122.014, 122.02, 122.03,
122.04, 122.041, 122.042, 122.05, 122.06, 122.07, 122.071, 122.073,
122.075, 122.077, 122.08, 122.081, 122.082, 122.083, 122.085,
122.086, 122.087, 122.088, 122.089, 122.0810, 122.0811, 122.0812,
122.0813, 122.0814, 122.0815, 122.0816, 122.0817, 122.09, 122.10,
122.11, 122.121, 122.131, 122.132, 122.133, 122.134, 122.135,
122.136, 122.14, 122.15, 122.151, 122.152, 122.153, 122.154, 122.155,
122.156, 122.16, 122.17, 122.171, 122.172, 122.173, 122.174, 122.175,
122.176, 122.177, 122.178, 122.179, 122.1710, 122.1711, 122.18,
122.19, 122.20, 122.21, 122.22, 122.23, 122.24, 122.25, 122.26,
122.27, 122.29, 122.291, 122.30, 122.31, 122.32, 122.33, 122.35,
122.36, 122.37, 122.38, 122.401, 122.403, 122.406, 122.4017,
122.4018, 122.4019, 122.4020, 122.4023, 122.4024, 122.4030, 122.4031,
122.4032, 122.4033, 122.4034, 122.4035, 122.4036, 122.4037, 122.4040,
122.4043, 122.4044, 122.4045, 122.4046, 122.4050, 122.4051, 122.4055,
122.4063, 122.4070, 122.4071, 122.4073, 122.4075, 122.4076, 122.4077,
122.41, 122.42, 122.43, 122.44, 122.45, 122.451, 122.46, 122.47,
122.48, 122.49, 122.52, 122.53, 122.54, 122.55, 122.56, 122.561,
122.57, 122.571, 122.58, 122.59, 122.60, 122.601, 122.602, 122.603,
122.604, 122.605, 122.61, 122.62, 122.63, 122.631, 122.632, 122.633,
122.64, 122.641, 122.6510, 122.6511, 122.6512, 122.67, 122.68,
122.681, 122.69, 122.70, 122.701, 122.71, 122.72, 122.73, 122.74,
122.75, 122.76, 122.77, 122.78, 122.79, 122.80, 122.81, 122.82,
122.84, 122.85, 122.851, 122.852, 122.86, 122.88, 122.89, 122.90,
122.91, 122.92, 122.921, 122.922, 122.923, 122.924, 122.925, 122.94,
122.941, 122.942, 122.951, 122.9511, 122.9512, 122.96, 123.01,
123.22, 125.08, 125.081, 125.111, 125.20, 125.836, 125.901, 126.023,
126.32, 126.62, 140.01, 145.035, 149.311, 150.02, 151.40, 153.59,
164.02, 165.01, 165.03, 165.20, 166.01, 166.02, 166.03, 166.04,
166.05, 166.06, 166.07, 166.08, 166.09, 166.12, 166.13, 166.14,
166.15, 166.16, 166.17, 166.18, 166.19, 166.20, 166.21, 166.25,
166.27, 167.02, 169.05, 173.08, 174.01, 174.02, 174.03, 174.04,
174.05, 174.06, 174.07, 175.03, 175.04, 175.06, 175.15, 176.01,
176.07, 184.01, 184.151, 184.16, 187.01, 187.03, 187.04, 187.05,
187.061, 191.02, 191.03, 191.10, 191.13, 191.15, 191.17, 191.19,
191.27, 191.30, 191.33, 191.35, 191.37, 191.40, 191.44, 191.45,
308.21, 321.261, 321.262, 333.03, 333.04, 333.05, 340.13, 703.34,
709.024, 709.192, 715.70, 715.72, 902.04, 991.02, 1517.14, 1551.01,
1551.05, 1551.06, 1551.11, 1551.12, 1551.15, 1551.19, 1551.20,
1551.311, 1551.32, 1551.33, 1551.35, 1555.02, 1555.03, 1555.04,
1555.05, 1555.06, 1555.08, 1555.17, 1728.01, 1728.07, 3326.02,
3327.17, 3333.373, 3333.50, 3366.01, 3366.03, 3366.04, 3735.27,
3735.39, 3735.66, 3735.671, 3735.672, 3735.673, 3735.69, 3742.32,
3746.121, 3746.20, 3775.04, 3780.03, 3780.19, 4121.123, 4164.04,
4164.12, 4301.17, 4303.181, 4303.262, 4503.591, 4582.58, 4901.021,
4906.02, 4928.06, 4928.43, 4928.51, 4928.52, 4928.53, 4928.54,
4928.543, 4928.544, 4928.55, 4928.56, 4928.57, 4928.58, 4928.581,
4928.582, 4928.583, 4928.61, 4928.62, 4928.63, 4928.75, 4929.16,
4929.161, 4929.163, 4981.02, 4981.03, 5101.16, 5104.30, 5117.02,
5117.03, 5117.04, 5117.05, 5117.07, 5117.071, 5117.08, 5117.09,
5117.10, 5117.12, 5117.22, 5119.34, 5120.07, 5126.071, 5126.18,
5501.031, 5531.08, 5703.0510, 5709.12, 5709.211, 5709.212, 5709.22,
5709.40, 5709.41, 5709.45, 5709.48, 5709.51, 5709.61, 5709.62,
5709.63, 5709.631, 5709.632, 5709.633, 5709.64, 5709.66, 5709.67,
5709.671, 5709.68, 5709.69, 5709.73, 5709.78, 5709.82, 5709.87,
5709.88, 5709.882, 5717.02, 5725.32, 5725.33, 5726.54, 5726.55,
5726.59, 5727.75, 5729.032, 5729.16, 5733.33, 5733.34, 5733.352,
5733.58, 5733.59, 5747.01, 5747.331, 5747.51, 5747.66, 5747.67,
5751.52, 5751.54, 5751.55, 6111.12, 6121.02, and 6123.031 and to
enact sections 122.634 and 122.635 of the Revised Code
to
rename the Department of Development to the Department of Housing and
Development and to otherwise modify the law related to housing.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 9.47, 9.66, 107.03, 107.21, 117.55, 121.02, 121.03, 121.35,
122.01, 122.011, 122.012, 122.013, 122.014, 122.02, 122.03, 122.04,
122.041, 122.042, 122.05, 122.06, 122.07, 122.071, 122.073, 122.075,
122.077, 122.08, 122.081, 122.082, 122.083, 122.085, 122.086,
122.087, 122.088, 122.089, 122.0810, 122.0811, 122.0812, 122.0813,
122.0814, 122.0815, 122.0816, 122.0817, 122.09, 122.10, 122.11,
122.121, 122.131, 122.132, 122.133, 122.134, 122.135, 122.136,
122.14, 122.15, 122.151, 122.152, 122.153, 122.154, 122.155, 122.156,
122.16, 122.17, 122.171, 122.172, 122.173, 122.174, 122.175, 122.176,
122.177, 122.178, 122.179, 122.1710, 122.1711, 122.18, 122.19,
122.20, 122.21, 122.22, 122.23, 122.24, 122.25, 122.26, 122.27,
122.29, 122.291, 122.30, 122.31, 122.32, 122.33, 122.35, 122.36,
122.37, 122.38, 122.401, 122.403, 122.406, 122.4017, 122.4018,
122.4019, 122.4020, 122.4023, 122.4024, 122.4030, 122.4031, 122.4032,
122.4033, 122.4034, 122.4035, 122.4036, 122.4037, 122.4040, 122.4043,
122.4044, 122.4045, 122.4046, 122.4050, 122.4051, 122.4055, 122.4063,
122.4070, 122.4071, 122.4073, 122.4075, 122.4076, 122.4077, 122.41,
122.42, 122.43, 122.44, 122.45, 122.451, 122.46, 122.47, 122.48,
122.49, 122.52, 122.53, 122.54, 122.55, 122.56, 122.561, 122.57,
122.571, 122.58, 122.59, 122.60, 122.601, 122.602, 122.603, 122.604,
122.605, 122.61, 122.62, 122.63, 122.631, 122.632, 122.633, 122.64,
122.641, 122.6510, 122.6511, 122.6512, 122.67, 122.68, 122.681,
122.69, 122.70, 122.701, 122.71, 122.72, 122.73, 122.74, 122.75,
122.76, 122.77, 122.78, 122.79, 122.80, 122.81, 122.82, 122.84,
122.85, 122.851, 122.852, 122.86, 122.88, 122.89, 122.90, 122.91,
122.92, 122.921, 122.922, 122.923, 122.924, 122.925, 122.94, 122.941,
122.942, 122.951, 122.9511, 122.9512, 122.96, 123.01, 123.22, 125.08,
125.081, 125.111, 125.20, 125.836, 125.901, 126.023, 126.32, 126.62,
140.01, 145.035, 149.311, 150.02, 151.40, 153.59, 164.02, 165.01,
165.03, 165.20, 166.01, 166.02, 166.03, 166.04, 166.05, 166.06,
166.07, 166.08, 166.09, 166.12, 166.13, 166.14, 166.15, 166.16,
166.17, 166.18, 166.19, 166.20, 166.21, 166.25, 166.27, 167.02,
169.05, 173.08, 174.01, 174.02, 174.03, 174.04, 174.05, 174.06,
174.07, 175.03, 175.04, 175.06, 175.15, 176.01, 176.07, 184.01,
184.151, 184.16, 187.01, 187.03, 187.04, 187.05, 187.061, 191.02,
191.03, 191.10, 191.13, 191.15, 191.17, 191.19, 191.27, 191.30,
191.33, 191.35, 191.37, 191.40, 191.44, 191.45, 308.21, 321.261,
321.262, 333.03, 333.04, 333.05, 340.13, 703.34, 709.024, 709.192,
715.70, 715.72, 902.04, 991.02, 1517.14, 1551.01, 1551.05, 1551.06,
1551.11, 1551.12, 1551.15, 1551.19, 1551.20, 1551.311, 1551.32,
1551.33, 1551.35, 1555.02, 1555.03, 1555.04, 1555.05, 1555.06,
1555.08, 1555.17, 1728.01, 1728.07, 3326.02, 3327.17, 3333.373,
3333.50, 3366.01, 3366.03, 3366.04, 3735.27, 3735.39, 3735.66,
3735.671, 3735.672, 3735.673, 3735.69, 3742.32, 3746.121, 3746.20,
3775.04, 3780.03, 3780.19, 4121.123, 4164.04, 4164.12, 4301.17,
4303.181, 4303.262, 4503.591, 4582.58, 4901.021, 4906.02, 4928.06,
4928.43, 4928.51, 4928.52, 4928.53, 4928.54, 4928.543, 4928.544,
4928.55, 4928.56, 4928.57, 4928.58, 4928.581, 4928.582, 4928.583,
4928.61, 4928.62, 4928.63, 4928.75, 4929.16, 4929.161, 4929.163,
4981.02, 4981.03, 5101.16, 5104.30, 5117.02, 5117.03, 5117.04,
5117.05, 5117.07, 5117.071, 5117.08, 5117.09, 5117.10, 5117.12,
5117.22, 5119.34, 5120.07, 5126.071, 5126.18, 5501.031, 5531.08,
5703.0510, 5709.12, 5709.211, 5709.212, 5709.22, 5709.40, 5709.41,
5709.45, 5709.48, 5709.51, 5709.61, 5709.62, 5709.63, 5709.631,
5709.632, 5709.633, 5709.64, 5709.66, 5709.67, 5709.671, 5709.68,
5709.69, 5709.73, 5709.78, 5709.82, 5709.87, 5709.88, 5709.882,
5717.02, 5725.32, 5725.33, 5726.54, 5726.55, 5726.59, 5727.75,
5729.032, 5729.16, 5733.33, 5733.34, 5733.352, 5733.58, 5733.59,
5747.01, 5747.331, 5747.51, 5747.66, 5747.67, 5751.52, 5751.54,
5751.55, 6111.12, 6121.02, and 6123.031 be amended and sections
122.634 and 122.635 of the Revised Code be enacted to read as
follows:
Sec.
9.47.
(A)
Any person desiring to bid on a contract awarded pursuant to Chapter
153. of the Revised Code by an owner referred to in section 153.01 of
the Revised Code or awarded by the director of transportation
pursuant to Chapter 5525. of the Revised Code may make application
for a certificate of compliance with affirmative action programs.
Application shall be made to the department of
housing
and
development.
The director of
housing
and
development's
designee shall promptly determine whether the person has complied
with all federal affirmative action programs to which the person was
subject and any state affirmative action program to which the person
was subject pursuant to section 153.59 of the Revised Code which
state or federal affirmative action program arose out of a contract
the person had with the federal government, the state, or a political
subdivision of the state. Where the director's designee determines
the person has not committed any violation of such prior affirmative
action programs during the five years immediately preceding the date
of determination, the director's designee shall issue a dated
certificate of compliance with affirmative action programs. The
director's designee may issue an updated certificate to a person upon
request but not more frequently than once every one hundred eighty
days. A person who violates an affirmative action program during the
five years preceding the date of determination is ineligible to bid
on a contract awarded pursuant to Chapter 153. of the Revised Code by
an owner referred to in section 153.01 of the Revised Code or awarded
by the director of transportation pursuant to Chapter 5525. of the
Revised Code for a period of three years after the date of
determination.
(B)
Any person denied a certificate or an updated certificate may appeal
to the director of
housing
and
development
for a review of that determination. The appeal must be filed within
ten days of the date of the determination. The director shall, within
five days after receipt of the appeal, either affirm or reverse the
determination.
(C)
Any person dissatisfied with the decision of the director on review
may, within thirty days, appeal the decision of the director to the
court of common pleas of Franklin county. The court may affirm or
reverse the decision of the director. At the hearing before the
court, evidence may be introduced for and against the decision of the
director. The decision of the court may be appealed as in other
cases.
(D)
The director of
housing
and
development,
in accordance with Chapter 119. of the Revised Code, shall adopt, and
may amend or rescind, rules to implement this section.
Sec.
9.66.
(A)
As used in this section:
(1)
"Economic development assistance" means all of the
following:
(a)
The programs and assistance provided or administered by the
department of
housing
and
development
under Chapters 122. and 166. of the Revised Code and any other
section of the Revised Code under which the department provides or
administers economic development assistance;
(b)
The programs and assistance provided or administered by a political
subdivision under Chapters 725. and 1728. and sections 3735.67 to
3735.70, 5709.40 to 5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75,
and 5709.77 to 5709.81 of the Revised Code and any other section of
the Revised Code under which a political subdivision provides
economic development assistance;
(c)
Assistance provided under any other section of the Revised Code under
which the state or a state agency provides or administers economic
development assistance;
(d)
The tax credit authorized by section 5725.31, 5729.07, or 5733.42 of
the Revised Code.
(2)
"Liability" means any of the following:
(a)
Any delinquent tax owed the state or a political subdivision of the
state;
(b)
Any moneys owed the state or a state agency for the administration or
enforcement of the environmental laws of the state;
(c)
Any other moneys owed the state, a state agency, or a political
subdivision of the state that are past due.
"Liability"
includes any item described in division (A)(2) of this section that
is being contested in a court of law.
(3)
"Political subdivision" means any county, municipal
corporation, or township of the state.
(4)
"State agency" means every organized body, office, or
agency established by the laws of the state for the exercise of any
function of state government.
(B)
A person who applies to the state, a state agency, or a political
subdivision for economic development assistance shall indicate on the
application for assistance whether the person has any outstanding
liabilities owed to the state, a state agency, or a political
subdivision. Such a person also shall authorize the state, state
agency, or political subdivision to inspect the personal or corporate
financial statements of the applicant, including tax records and
other similar information not open to public inspection.
(C)(1)
Whoever knowingly makes a false statement under division (B) of this
section concerning an application for economic development assistance
or who fails to provide any information required by that division is
ineligible for the assistance applied for and is ineligible for any
future economic development assistance from the state, a state
agency, or a political subdivision.
(2)
Whoever knowingly makes a false statement under division (B) of this
section concerning an application for economic development assistance
or who fails to provide any information required by that division
shall return any moneys received from the state, a state agency, or a
political subdivision in connection with that application.
Sec.
107.03.
(A)
As used in this section, "transportation budget" means the
biennial budget that primarily includes the following:
(1)
Motor fuel excise tax-related appropriations for the department of
transportation, public works commission, and department of
housing
and
development;
(2)
Other appropriations that pertain to transportation and
infrastructure related to transportation.
(B)
The governor shall submit a transportation budget to the general
assembly not later than four weeks after the general assembly's
organization.
(C)
The governor shall submit to the general assembly, not later than
four weeks after its organization, a state budget containing a
complete financial plan for the ensuing fiscal biennium, excluding
items of revenue and expenditure described in section 126.022 of the
Revised Code. However, in years of a new governor's inauguration,
this budget shall be submitted not later than the fifteenth day of
March.
(D)
In years of a new governor's inauguration, only the new governor
shall submit a budget to the general assembly. In addition to other
things required by law, each of the governor's budgets shall contain:
(1)
A general budget summary by function and agency setting forth the
proposed total expenses from each and all funds and the anticipated
resources for meeting such expenses; such resources to include any
available balances in the several funds at the beginning of the
biennium and a classification by totals of all revenue receipts
estimated to accrue during the biennium under existing law and
proposed legislation.
(2)
A detailed statement showing the amounts recommended to be
appropriated from each fund for each fiscal year of the biennium for
current expenses, including, but not limited to, personal services,
supplies and materials, equipment, subsidies and revenue
distribution, merchandise for resale, transfers, and nonexpense
disbursements, obligations, interest on debt, and retirement of debt,
and for the biennium for capital outlay, to the respective
departments, offices, institutions, as defined in section 121.01 of
the Revised Code, and all other public purposes; and, in comparative
form, the actual expenses by source of funds during each fiscal year
of the previous two bienniums for each such purpose. No alterations
shall be made in the requests for the legislative and judicial
branches of the state filed with the director of budget and
management under section 126.02 of the Revised Code. If any amount of
federal money is recommended to be appropriated or has been expended
for a purpose for which state money also is recommended to be
appropriated or has been expended, the amounts of federal money and
state money involved shall be separately identified.
(3)
A detailed estimate of the revenue receipts in each fund from each
source under existing laws during each year of the biennium; and, in
comparative form, actual revenue receipts in each fund from each
source for each year of the two previous bienniums;
(4)
The estimated cash balance in each fund at the beginning of the
biennium covered by the budget; the estimated liabilities outstanding
against each such balance; and the estimated net balance remaining
and available for new appropriations;
(5)
A detailed estimate of the additional revenue receipts in each fund
from each source under proposed legislation, if enacted, during each
year of the biennium;
(6)
The most recent report prepared by the department of taxation under
section 5703.48 of the Revised Code, which shall be submitted to the
general assembly as an appendix to the governor's budget;
(7)
The most recent TANF spending plan prepared by the department of job
and family services under section 5101.806 of the Revised Code, which
shall be submitted to the general assembly as an appendix to the
governor's budget;
(8)
The medicaid caseload and expenditure forecast report prepared by the
office of budget and management, in consultation with the department
of medicaid, under section 126.021 of the Revised Code. The report
shall be submitted to the general assembly as a supplemental budget
document to provide an in-depth analysis of the governor's budget
recommendations for the medicaid budget as a whole and for each of
the major medicaid appropriation items. The report shall clearly
distinguish a proposed policy change from continuing law or
administrative policy and indicate whether the data used throughout
the report is proposed, estimated, or actual data for the current or
proposed budget biennium. At a minimum, the report shall delineate a
part-to-whole mapping of the state and federal shares of the general
revenue fund appropriation item 651525, medicaid health care
services, or any other equivalent general revenue fund appropriation
item, by eligibility group and subgroup, service delivery system,
delivery system, medicaid provider, and program.
Sec.
107.21.
(A)
As used in this section, "Appalachian region" means the
following counties in this state that have been designated as part of
Appalachia by the federal Appalachian regional commission and that
have been geographically isolated and economically depressed: Adams,
Ashtabula, Athens, Belmont, Brown, Carroll, Clermont, Columbiana,
Coshocton, Gallia, Guernsey, Harrison, Highland, Hocking, Holmes,
Jackson, Jefferson, Lawrence, Mahoning, Meigs, Monroe, Morgan,
Muskingum, Noble, Perry, Pike, Ross, Scioto, Trumbull, Tuscarawas,
Vinton, and Washington.
(B)
There is hereby created in the department of
housing
and
development
the governor's office of Appalachian Ohio. The governor shall
designate the director of the governor's office of Appalachian Ohio.
The director shall report directly to the office of the governor. On
January 1, 1987, the governor shall designate the director to
represent this state on the federal Appalachian regional commission.
The director may appoint such employees as are necessary to exercise
the powers and duties of this office. The director shall maintain
local development districts as established within the Appalachian
region for the purpose of regional planning for the distribution of
funds from the Appalachian regional commission within the Appalachian
region.
(C)
The governor's office of Appalachian Ohio shall represent the
interests of the Appalachian region in the government of this state.
The duties of the director of the office shall include, but are not
limited to, the following:
(1)
To identify residents of the Appalachian region qualified to serve on
state boards, commissions, and bodies and in state offices, and to
bring these persons to the attention of the governor;
(2)
To represent the interests of the Appalachian region in the general
assembly and before state boards, commissions, bodies, and agencies;
(3)
To assist in forming a consensus on public issues and policies among
institutions and organizations that serve the Appalachian region;
(4)
To act as an ombudsperson to assist in resolving differences between
state or federal agencies and the officials of political subdivisions
or private, nonprofit organizations located within the Appalachian
region;
(5)
To assist planning commissions, agencies, and organizations within
the Appalachian region in distributing planning information and
documents to the appropriate state and federal agencies and to assist
in focusing attention on any findings and recommendations of these
commissions, agencies, and organizations;
(6)
To issue reports on the Appalachian region that describe progress
achieved and the needs that still exist in the region;
(7)
To assist the governor's office in resolving the problems of
residents of the Appalachian region that come to the governor's
attention.
(D)
The amount of money from appropriated state funds allocated each year
to pay administrative costs of a local development district existing
on
the effective date of this amendment
October 16, 2009,
shall not be decreased due to the creation and funding of additional
local development districts. The amount of money allocated to each
district shall be increased each year by the average percentage of
increase in the consumer price index for the prior year.
As
used in this division, "consumer price index" means the
consumer price index for all urban consumers (United States city
average, all items), prepared by the United States department of
labor, bureau of labor statistics.
Sec.
117.55.
(A)
As used in this section:
(1)
"Entity" means, whether for profit or nonprofit, a
corporation, association, partnership, limited liability company,
sole proprietorship, or other business entity. "Entity"
does not include an individual who receives state assistance that is
not related to the individual's business.
(2)
"State award for economic development" means state
financial assistance and expenditure in any of the following forms:
grants, subgrants, loans, awards, cooperative agreements, or other
similar and related forms of financial assistance and contracts,
subcontracts, purchase orders, task orders, delivery orders, or other
similar and related transactions. It does not include compensation
received as an employee of the state or any state financial
assistance and expenditure received from the general assembly or any
legislative agency, any court or judicial agency, or from the offices
of the attorney general, the secretary of state, the auditor of
state, or the treasurer of state.
(B)
Not later than thirty days after the end of the state fiscal year,
the department of
housing
and
development
shall send the auditor of state a list of state awards for economic
development. The auditor of state shall review each award and
determine if an entity is in compliance with the terms and
conditions, including performance metrics, of a state award for
economic development received by that entity.
(C)
The auditor of state shall publish a report of its reviews and
determinations not later than ninety days after receipt of the list
of state awards from the department of
housing
and
development.
(D)
When the auditor of state finds that an entity that receives or has
received a state award for economic development is not in compliance
with a performance metric that is specified in the terms and
conditions of the award, the auditor of state shall report the
findings to the attorney general. The attorney general may pursue
against and from that entity such remedies and recoveries as are
available under law.
(E)
If the auditor of state is authorized to conduct an audit of an
entity that receives or has received a state award for economic
development, the audit shall be conducted in accordance with Chapter
117. of the Revised Code.
Sec.
121.02.
The
following administrative departments and their respective directors
are hereby created:
(A)
The office of budget and management, which shall be administered by
the director of budget and management;
(B)
The department of commerce, which shall be administered by the
director of commerce;
(C)
The department of administrative services, which shall be
administered by the director of administrative services;
(D)
The department of transportation, which shall be administered by the
director of transportation;
(E)
The department of agriculture, which shall be administered by the
director of agriculture;
(F)
The department of natural resources, which shall be administered by
the director of natural resources;
(G)
The department of health, which shall be administered by the director
of health;
(H)
The department of job and family services, which shall be
administered by the director of job and family services;
(I)
The department of children and youth, which shall be administered by
the director of children and youth;
(J)
The department of public safety, which shall be administered by the
director of public safety;
(K)
The department of mental health and addiction services, which shall
be administered by the director of mental health and addiction
services;
(L)
The department of developmental disabilities, which shall be
administered by the director of developmental disabilities;
(M)
The department of insurance, which shall be administered by the
superintendent of insurance as director thereof;
(N)
The department of
housing
and
development,
which shall be administered by the director of
housing
and
development;
(O)
The department of youth services, which shall be administered by the
director of youth services;
(P)
The department of rehabilitation and correction, which shall be
administered by the director of rehabilitation and correction;
(Q)
The environmental protection agency, which shall be administered by
the director of environmental protection;
(R)
The department of aging, which shall be administered by the director
of aging;
(S)
The department of veterans services, which shall be administered by
the director of veterans services;
(T)
The department of medicaid, which shall be administered by the
medicaid director;
(U)
The department of education and workforce, which shall be
administered by the director of education and workforce.
The
director of each department shall exercise the powers and perform the
duties vested by law in such department.
Sec.
121.03.
The
following administrative department heads shall be appointed by the
governor, with the advice and consent of the senate, and shall hold
their offices during the term of the appointing governor, and are
subject to removal at the pleasure of the governor.
(A)
The director of budget and management;
(B)
The director of commerce;
(C)
The director of transportation;
(D)
The director of agriculture;
(E)
The director of job and family services;
(F)
The director of children and youth;
(G)
The director of public safety;
(H)
The superintendent of insurance;
(I)
The director of
housing
and
development;
(J)
The tax commissioner;
(K)
The director of administrative services;
(L)
The director of natural resources;
(M)
The director of mental health and addiction services;
(N)
The director of developmental disabilities;
(O)
The director of health;
(P)
The director of youth services;
(Q)
The director of rehabilitation and correction;
(R)
The director of environmental protection;
(S)
The director of aging;
(T)
The administrator of workers' compensation who meets the
qualifications required under division (A) of section 4121.121 of the
Revised Code;
(U)
The director of veterans services who meets the qualifications
required under section 5902.01 of the Revised Code;
(V)
The chancellor of higher education;
(W)
The medicaid director;
(X)
The director of education and workforce.
Sec.
121.35.
(A)
Subject to division (B) of this section, the following state agencies
shall collaborate to revise and make more uniform the eligibility
standards and eligibility determination procedures of programs the
state agencies administer:
(1)
The department of aging;
(2)
The department of
housing
and
development;
(3)
The department of developmental disabilities;
(4)
The department of education and workforce;
(5)
The department of health;
(6)
The department of job and family services;
(7)
The department of medicaid;
(8)
The department of mental health and addiction services;
(9)
The opportunities for Ohioans with disabilities agency;
(10)
The department of children and youth.
(B)
In revising eligibility standards and eligibility determination
procedures, a state agency shall not make any program's eligibility
standards or eligibility determination procedures inconsistent with
state or federal law. To the extent authorized by state and federal
law, the revisions may provide for the state agencies to share
administrative operations.
Sec.
122.01.
(A)
As used in the Revised Code, the "development services agency"
and
the "department of development"
means
the department of
housing
and
development
and the "director of development services"
and
the "director of development"
means
the director of
housing
and
development.
Whenever the development services agency
,
department of development, director of development,
or director of development services is referred to or designated in
any statute, rule, contract, grant, or other document, the reference
or designation shall be deemed to refer to the department of
housing
and
development
or director of
housing
and
development,
as the case may be.
(B)
As used in this chapter:
(1)
"Community problems" includes, but is not limited to,
taxation, fiscal administration, governmental structure and
organization, intergovernmental cooperation, education and training,
employment needs, community planning and development, air and water
pollution, public safety and the administration of justice, housing,
mass transportation, community facilities and services, health,
welfare, recreation, open space, and the development of human
resources.
(2)
"Professional personnel" means either of the following:
(a)
Personnel who have earned a bachelor's degree from a college or
university;
(b)
Personnel who serve as or have the working title of director,
assistant director, deputy director, assistant deputy director,
manager, office chief, assistant office chief, or program director.
(3)
"Technical personnel" means any of the following:
(a)
Personnel who provide technical assistance according to their job
description or in accordance with the Revised Code;
(b)
Personnel employed in the director of
housing
and
development's
office or the legal office, communications office, finance office,
legislative affairs office, or human resources office of the
department of
housing
and
development;
(c)
Personnel employed in the technology division of the department.
Sec.
122.011.
(A)
The department of
housing
and
development
shall develop and promote plans and programs designed to assure that
state resources are efficiently used, economic growth is properly
balanced, community growth is developed in an orderly manner, and
local governments are coordinated with each other and the state, and
for such purposes may do all of the following:
(1)
Serve as a clearinghouse for information, data, and other materials
that may be helpful or necessary to persons or local governments, as
provided in section 122.073 of the Revised Code;
(2)
Prepare and activate plans for the retention, development, expansion,
and use of the resources and commerce of the state, as provided in
section 122.04 of the Revised Code;
(3)
Assist and cooperate with federal, state, and local governments and
agencies of federal, state, and local governments in the coordination
of programs to carry out the functions and duties of the department;
(4)
Encourage and foster research and development activities, conduct
studies related to the solution of community problems, and develop
recommendations for administrative or legislative actions, as
provided in section 122.03 of the Revised Code;
(5)
Serve as the economic and community development planning agency,
which shall prepare and recommend plans and programs for the orderly
growth and development of this state and which shall provide planning
assistance, as provided in section 122.06 of the Revised Code;
(6)
Cooperate with and provide technical assistance to state departments,
political subdivisions, regional and local planning commissions,
tourist associations, councils of government, community development
groups, community action agencies, and other appropriate
organizations for carrying out the functions and duties of the
department of
housing
and
development
or for the solution of community problems;
(7)
Coordinate the activities of state agencies that have an impact on
carrying out the functions and duties of the department of
housing
and
development;
(8)
Encourage and assist the efforts of and cooperate with local
governments to develop mutual and cooperative solutions to their
common problems that relate to carrying out the purposes of this
section;
(9)
Study existing structure, operations, and financing of regional or
local government and those state activities that involve significant
relations with regional or local governmental units, recommend to the
governor and to the general assembly such changes in these provisions
and activities as will improve the operations of regional or local
government, and conduct other studies of legal provisions that affect
problems related to carrying out the purposes of this section;
(10)
Create and operate a division of community development to develop and
administer programs and activities that are authorized by federal
statute or the Revised Code;
(11)
Until October 15, 2007, establish fees and charges, in consultation
with the director of agriculture, for purchasing loans from financial
institutions and providing loan guarantees under the family farm loan
program created under sections 901.80 to 901.83 of the Revised Code;
(12)
Provide loan servicing for the loans purchased and loan guarantees
provided under section 901.80 of the Revised Code as that section
existed prior to October 15, 2007;
(13)
Until October 15, 2007, and upon approval by the controlling board
under division (A)(3) of section 901.82 of the Revised Code of the
release of money to be used for purchasing a loan or providing a loan
guarantee, request the release of that money in accordance with
division (B) of section 166.03 of the Revised Code for use for the
purposes of the fund created by section 166.031 of the Revised Code.
(14)
Allocate that portion of the national recovery zone economic
development bond limitation and that portion of the national recovery
zone facility bond limitation that has been allocated to the state
under section 1400U-1 of the Internal Revenue Code, 26 U.S.C.
1400U-1. If any county or municipal corporation waives any portion of
an allocation it receives under division (A)(14) of this section, the
department may reallocate that amount. Any allocation or reallocation
shall be made in accordance with this section and section 1400U-1 of
the Internal Revenue Code.
(B)
The director of
housing
and
development
may request the attorney general to, and the attorney general, in
accordance with section 109.02 of the Revised Code, shall bring a
civil action in any court of competent jurisdiction. The director may
be sued in the director's official capacity, in connection with this
chapter, in accordance with Chapter 2743. of the Revised Code.
(C)
The director shall execute a contract pursuant to section 187.04 of
the Revised Code with the nonprofit corporation formed under section
187.01 of the Revised Code, and may execute any additional contracts
with the corporation providing for the corporation to assist the
director or department in carrying out any duties of the director or
department under this chapter, under any other provision of the
Revised Code dealing with economic development, or under a contract
with the director, subject to section 187.04 of the Revised Code.
Sec.
122.012.
The
director of
housing
and
development
may designate any governmental entity as an agency of the state to
act within a specified region of the state for the purpose of
creating and preserving jobs and employment opportunities and
financing projects intended to create or preserve jobs and employment
opportunities. Any such designation shall be in addition to agency
designations made for such purpose by, or by the director pursuant
to, Section 56.09 of H.B. 298 of the 119th general assembly, the
provisions of which pertaining to such designations, and the
designations so made, remain in full force and effect as continuing
grants of authority. Each agency designated by or pursuant to Section
56.09 of H.B. 298 of the 119th general assembly or this section may
exercise any statutory powers it has under any other section of the
Revised Code to accomplish the purposes of this section within the
agency's specified region. The regions served by agencies shall not
overlap. The director may reduce, expand, or otherwise modify the
region served by, or limit the authority of, any such agency.
Sec.
122.013.
The
department of
housing
and
development
shall post the following on the official internet site of the
department:
(A)
Annual reports of the progress and status of eligible projects made
as required under division (E) of section 122.0814 of the Revised
Code;
(B)
The annual report made by the director of
housing
and
development
under section 122.0817 of the Revised Code;
(C)
Reports made by the third frontier commission under section 184.15 of
the Revised Code;
(D)
Information on all support awarded under section 184.11 of the
Revised Code.
Sec.
122.014.
(A)
As used in this section, "gaming activities" means
activities conducted in connection with or that include any of the
following:
(1)
Casino gaming, as authorized and defined in Section 6(C) of Article
XV, Ohio Constitution;
(2)
Casino gaming, as defined in division (E) of section 3772.01 of the
Revised Code; or
(3)
The pari-mutuel system of wagering as authorized and described in
Chapter 3769. of the Revised Code.
(B)
The department of
housing
and
development
or any other entity that administers any program or development
project established under Chapter 122., 166., or 184. of the Revised
Code or in
sections
section
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide
any financial assistance, including loans, tax credits, and grants,
staffing assistance, technical support, or other assistance to
businesses conducting gaming activities or for project sites on which
gaming activities are or will be conducted.
Sec.
122.02.
The
department of
housing
and
development
may apply for, receive, and accept grants, gifts, contributions,
loans and any other assistance in any form from public and private
sources, including assistance from agencies and instrumentalities of
the United States and including the application for, receipt, and
acceptance, on behalf of this state, of assistance from agencies and
instrumentalities of the United States for the purposes of Chapter
122. of the Revised Code except that nothing in this section
prohibits the minority business development division from exercising
its authority under section 122.93 of the Revised Code. The
department shall do all things necessary to apply for, receive, and
administer such assistance in accordance with the laws of Ohio. It
may contract or enter into agreements with any person, governmental
agency, or public or private organization, and any local or regional
agency or political subdivision of the state may contract with it, to
carry out the purposes of Chapter 122. of the Revised Code. The
department may require, in all contracts for assistance stipulations
that the contractors and any subcontractors comply with requirements
as to minimum wages, hours of work, equal employment, and any other
conditions which the United States has attached to its financial aid
to the projects.
Sec.
122.03.
The
department of
housing
and
development
shall:
(A)
Maintain a continuing evaluation of existing research facilities in
the state and their relationship to orderly
econmic
economic
growth and the solution of community problems of the state;
(B)
Prepare and disseminate information relative to research facilities
in the state and their availability to industrial activities and the
solution of community problems;
(C)
Prepare and recommend programs for the coordination of research
activities in the state and to assure the maximum use of such
facilities in the development of orderly economic growth and the
solution of community problems;
(D)
Cooperate with educational institutions in the development of
educational programs to train technical personnel in the field of
research and those other fields related to the solution of community
problems;
(E)
Carry out continuing studies and analyses of the problems and
opportunities of communities, districts, and regions within the
state, and of multi-state regions of which Ohio is a part.
Sec.
122.04.
The
department of
housing
and
development
shall do the following:
(A)
Maintain a continuing evaluation of the sources available for the
retention, development, or expansion of industrial and commercial
facilities in this state through both public and private agencies;
(B)
Assist public and private agencies in obtaining information necessary
to evaluate the desirability of the retention, construction, or
expansion of industrial and commercial facilities in the state;
(C)
Facilitate contracts between community improvement corporations
organized under Chapter 1724. of the Revised Code or Ohio development
corporations organized under Chapter 1726. of the Revised Code and
industrial and commercial concerns seeking to locate or expand in the
state;
(D)
Upon request, consult with public agencies or authorities in the
preparation of studies of human and economic needs or advantages
relating to economic and community development;
(E)
Encourage, promote, and assist trade and commerce between this state
and foreign nations;
(F)
Promote and encourage persons to visit and travel within this state;
(G)
Maintain membership in the national association of state development
agencies;
(H)
Assist in the development of facilities and technologies that will
lead to increased, environmentally sound use of Ohio coal;
(I)
Promote economic growth in the state.
Sec.
122.041.
The
director of
housing
and
development
shall do all of the following with regard to the encouraging
diversity, growth, and equity program created under section 122.922
of the Revised Code:
(A)
Conduct outreach, marketing, and recruitment of EDGE business
enterprises, as defined in that section;
(B)
Provide business development services to EDGE business enterprises in
the developmental and transitional stages of the program, including
financial and bonding assistance and management and technical
assistance;
(C)
Develop a mentor program to bring businesses into a working
relationship with EDGE business enterprises in a way that
commercially benefits both entities and serves the purpose of the
EDGE program;
(D)
Establish processes by which an EDGE business enterprise may apply
for contract assistance, financial and bonding assistance, management
and technical assistance, and mentoring opportunities.
Sec.
122.042.
The
director of
housing
and
development
may found an employment opportunity program that encourages employers
to employ individuals who are members of significantly disadvantaged
groups. If the director intends to found such an employment
opportunity program, the director shall adopt, and thereafter may
amend or rescind, rules under Chapter 119. of the Revised Code to
found, and to operate, maintain, and improve, the program. In the
rules, the director shall:
(A)
Construct, and, as changing circumstances indicate, re-construct,
procedures according to which significantly disadvantaged groups are
identified as such, an individual is identified as being a member of
a significantly disadvantaged group, and an employer is identified as
being a potential employer of an individual who is a member of a
significantly disadvantaged group;
(B)
Describe, and, as experience indicates, re-describe, the kinds of
evidence that shall be considered to identify significantly
disadvantaged groups, the kinds of evidence an individual shall offer
to prove that the individual is a member of a significantly
disadvantaged group, and the kinds of evidence an employer shall
offer to prove that the employer is a potential employer of an
individual who is a member of a significantly disadvantaged group;
(C)
Specify, and, as experience indicates, re-specify, strategies and
tactics for connecting individuals who are members of significantly
disadvantaged groups with potential employers of members of
significantly disadvantaged groups; and
(D)
Construct, describe, specify, define, and prescribe any other thing
that is necessary and proper for the founding, and for the successful
and efficient operation, maintenance, and improvement, of the
employment opportunity program.
In
founding, and in operating, maintaining, and improving, the
employment opportunity program under the rules, the director shall
proceed so that the resulting program functions as a coherent,
efficient system for improving employment opportunities for
significantly disadvantaged groups. Examples of significantly
disadvantaged groups include individuals who have not graduated from
high school, individuals who have been convicted of a crime,
individuals who are disabled, and individuals who are chronically
unemployed (usually for more than eighteen months).
Sec.
122.05.
(A)
The director of
housing
and
development
may, to carry out the purposes of division (E) of section 122.04 of
the Revised Code:
(1)
Establish offices in foreign countries as the director considers
appropriate and enter into leases of real property, buildings, and
office space that are appropriate for these offices;
(2)
Appoint personnel, who shall be in the unclassified civil services,
necessary to operate such offices and fix their compensation. The
director may enter into contracts with foreign nationals to staff the
foreign offices established under this section.
(3)
The director may establish United States dollar and foreign currency
accounts for the payment of expenses related to the operation and
maintenance of the offices established under this section. The
director shall establish procedures acceptable to the director of
budget and management for the conversion, transfer, and control of
United States dollars and foreign currency.
(4)
Provide export promotion assistance to Ohio businesses and organize
or support missions to foreign countries to promote export of Ohio
products and services and to encourage foreign direct investment in
Ohio. The director may charge fees to businesses receiving export
assistance and to participants in foreign missions sufficient to
recover the direct costs of those activities. The director shall
adopt, as an internal management rule under section 111.15 of the
Revised Code, a procedure for setting the fees and a schedule of fees
for services commonly provided by the department. The procedure shall
require the director to annually review the established fees.
(5)
Do all things necessary and appropriate for the operation of the
state's foreign offices.
(B)
All contracts entered into under division (A)(2) of this section and
any payments of expenses under division (A)(3) of this section
related to the operation and maintenance of foreign offices
established under this section may be paid in the appropriate foreign
currency and are exempt from sections 127.16 and 5147.07 and Chapters
124., 125., and 153. of the Revised Code.
Sec.
122.06.
The
department of
housing
and
development
shall:
(A)
Assemble, analyze, and make available to governmental agencies and
the public, information relative to the human, natural, and economic
resources and economic needs of the state;
(B)
Prepare and maintain, in cooperation with departments and agencies of
the state, comprehensive plans and recommendations for promotion of
more desirable patterns of growth and development of the resources of
the state;
(C)
Assist in the coordination of development plans of federal, state and
local governments, regional and local planning authorities, and
private agencies;
(D)
Provide planning assistance to state departments and agencies,
political subdivisions, county planning commissions, regional
planning units, councils of government, and local governments of this
state. Such planning assistance may be rendered with respect to
surveys, land use studies, urban renewal plans, technical services
and other planning work. In so doing, the department may contract
with municipal subdivisions, with regional planning commissions, and
with qualified persons, firms, and agencies.
(E)
Cooperate with federal agencies and authorities of other states in
the solution of community and development problems which cross state
lines;
(F)
Recommend guidelines for the development and management of new
communities;
(G)
Prepare and maintain rules concerning certification of workable
programs for impacted cities pursuant to division (C) of section
1728.01 of the Revised Code, provided that the department shall
consult with officials of municipalities and representatives of
statewide organizations of such officials prior to the preparation,
adoption, or change of such rules.
Sec.
122.07.
(A)
There is hereby created within the department of
housing
and
development
an office to be known as the office of TourismOhio. The office shall
be under the supervision of a director who shall be of equivalent
rank of deputy director of the agency and shall serve at the pleasure
of the director of
housing
and
development.
(B)
The office shall do both of the following:
(1)
Promote the state as a destination for living, learning, working, and
traveling, and provide related services or otherwise carry out the
promotional functions or duties of the department, as necessary;
(2)
Perform an annual return-on-investment study analyzing the office's
success in promoting Ohio. A report containing the findings of the
study shall be submitted to the governor, the speaker and minority
leader of the house of representatives, and the president and
minority leader of the senate. The report shall also be made
available to the public.
Sec.
122.071.
(A)
The TourismOhio advisory board is hereby established to advise the
director of
housing
and
development
services
and
the director of the office of TourismOhio on strategies for promoting
tourism
in
this
state
as a destination for living, learning, working, and traveling
.
The board shall consist of the chief investment officer of the
nonprofit corporation formed under section 187.01 of the Revised Code
or the chief investment officer's designee, the director of the
office of TourismOhio, and nine members to be appointed by the
governor as provided in division (B) of this section. All members of
the board, except the director of the office of TourismOhio, shall be
voting members.
(B)(1)
The governor shall, within sixty days after September 28, 2012,
appoint to the TourismOhio advisory board one individual who is a
representative of convention and visitors' bureaus, one individual
who is a representative of the lodging industry, one individual who
is a representative of the restaurant industry, one individual who is
a representative of attractions, one individual who is a
representative of special events and festivals, one individual who is
a representative of agritourism, and three individuals who are
representatives of the tourism industry. Of the initial appointments,
two individuals shall serve a term of one year, three individuals
shall serve a term of two years, and the remainder shall serve a term
of three years. Thereafter, terms of office shall be for three years.
Each individual appointed to the board shall be a United States
citizen.
(2)
For purposes of division (B)(1) of this section, an individual is a
"representative of the tourism industry" if the individual
possesses five years or more executive-level experience in the
attractions, lodging, restaurant, transportation, or retail industry
or five years or more executive-level experience with a destination
marketing organization.
(C)(1)
Each member of the TourismOhio advisory board shall hold office from
the date of the member's appointment until the end of the term for
which the member is appointed. Vacancies that occur on the board
shall be filled in the manner prescribed for regular appointments to
the board. A member appointed to fill a vacancy occurring prior to
the expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of that predecessor's
term. A member shall continue in office subsequent to the expiration
date of the member's term until the member's successor takes office
or until sixty days have elapsed, whichever occurs first. Any member
appointed to the board is eligible for reappointment.
(2)
The governor shall designate one member of the board as chairperson.
(3)
Members appointed to the board may be reimbursed for actual and
necessary expenses incurred in connection with their official duties.
Sec.
122.073.
(A)
The
department
of housing and
development
services
agency
may
do any of the following:
(1)
Disseminate information concerning the industrial, commercial,
governmental, educational, cultural, recreational, agricultural, and
other advantages and attractions of the state;
(2)
Provide technical assistance to public and private agencies in the
preparation of promotional programs designed to attract business,
industry, and tourists to the state;
(3)
Enter into cooperative or contractual agreements, through the
director of
housing
and
development
services
,
with any individual, organization, or business to create, administer,
or otherwise be involved with Ohio
tourism-related
promotional
programs. Compensation under such agreements shall be determined by
the director and may include deferred compensation. This compensation
is payable from the tourism fund created in section 122.072 of the
Revised Code. Any excess revenue generated under such a cooperative
or contractual agreement shall be remitted to the fund to be
reinvested in ongoing tourism marketing initiatives as authorized by
law.
(B)
The
department of housing and development and the office of TourismOhio
shall establish and implement a campaign to promote Ohio as a
pro-housing state and to engage and educate Ohioans about the
benefits of growth and innovation in housing and economic
development.
(C)
Records
related to tourism market research submitted to or generated by the
office of TourismOhio, and any information taken for any purpose from
such research, are not public records for the purposes of section
149.43 of the Revised Code. The
agency
department
may
use, however, such tourism market research in a public report if the
director determines that issuing and distributing the report would
promote or market the state's travel and tourism industry or
otherwise advance the purposes of this section.
Sec.
122.075.
(A)
As used in this section:
(1)
"Alternative fuel" has the same meaning as in section
125.831 of the Revised Code.
(2)
"Biodiesel" means a mono-alkyl ester combustible liquid
fuel that is derived from vegetable oils or animal fats, or any
combination of those reagents, and that meets American society for
testing and materials specification D6751-03a for biodiesel fuel
(B100) blend stock distillate fuels.
(3)
"Diesel fuel" and "gasoline" have the same
meanings as in section 5735.01 of the Revised Code.
(4)
"Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal, grains, cheese
whey, and sugar beets; forest products; or other renewable resources,
including residue and waste generated from the production,
processing, and marketing of agricultural products, forest products,
and other renewable resources that meet all of the specifications in
the American society for testing and materials (ASTM) specification D
4806-88 and is denatured as specified in Parts 20 and 21 of Title 27
of the Code of Federal Regulations.
(5)
"Blended biodiesel" means diesel fuel containing at least
twenty per cent biodiesel by volume.
(6)
"Blended gasoline" means gasoline containing at least
eighty-five per cent ethanol by volume.
(7)
"Incremental cost" means either of the following:
(a)
The difference in cost between blended gasoline and gasoline
containing ten per cent or less ethanol at the time that the blended
gasoline is purchased;
(b)
The difference in cost between blended biodiesel and diesel fuel
containing two per cent or less biodiesel at the time that the
blended biodiesel is purchased.
(B)
For the purpose of improving the air quality in this state, the
director of
housing
and
development
services
shall
establish an alternative fuel transportation program under which the
director may make grants and loans to businesses, nonprofit
organizations, public school systems, or local governments for the
purchase and installation of alternative fuel refueling or
distribution facilities and terminals, for the purchase and use of
alternative fuel, to pay the cost of fleet conversion, and to pay the
costs of educational and promotional materials and activities
intended for prospective alternative fuel consumers, fuel marketers,
and others in order to increase the availability and use of
alternative fuel.
(C)
The director, in consultation with the director of agriculture, shall
adopt rules in accordance with Chapter 119. of the Revised Code that
are necessary for the administration of the alternative fuel
transportation program. The rules shall establish at least all of the
following:
(1)
An application form and procedures governing the application process
for receiving funds under the program;
(2)
A procedure for prioritizing the award of grants and loans under the
program. The procedures shall give preference to all of the
following:
(a)
Publicly accessible refueling facilities;
(b)
Entities applying to the program that have secured funding from other
sources, including, but not limited to, private or federal
incentives;
(c)
Entities that have presented compelling evidence of demand in the
market in which the facilities or terminals will be located;
(d)
Entities that have committed to utilizing purchased or installed
facilities or terminals for the greatest number of years;
(e)
Entities that will be purchasing or installing facilities or
terminals for any type of alternative fuel.
(3)
A requirement that the maximum incentive for the purchase and
installation of an alternative fuel refueling or distribution
facility or terminal be eighty per cent of the cost of the facility
or terminal, except that at least twenty per cent of the total cost
of the facility or terminal shall be incurred by the recipient and
not compensated for by any other source;
(4)
A requirement that the maximum incentive for the purchase of
alternative fuel be eighty per cent of the cost of the fuel or, in
the case of blended biodiesel or blended gasoline, eighty per cent of
the incremental cost of the blended biodiesel or blended gasoline;
(5)
Any other criteria, procedures, or guidelines that the director
determines are necessary to administer the program, including fees,
charges, interest rates, and payment schedules.
(D)
An applicant for a grant or loan under this section that sells motor
vehicle fuel at retail shall agree that if the applicant receives
funding, the applicant will report to the director the gallon or
gallon equivalent amounts of alternative fuel the applicant sells at
retail in this state for a period of three years after the project is
completed.
The
director shall enter into a written confidentiality agreement with
the applicant regarding the gallon or gallon equivalent amounts sold
as described in this division, and upon execution of the agreement
this information is not a public record.
(E)
There is hereby created in the state treasury the alternative fuel
transportation fund. The fund shall consist of money transferred to
the fund under division (B) of section 125.836 of the Revised Code,
money that is appropriated to it by the general assembly, money as
may be specified by the general assembly from the advanced energy
fund created by section 4928.61 of the Revised Code, and all money
received from the repayment of loans made from the fund or in the
event of a default on any such loan. Money in the fund shall be used
to make grants and loans under the alternative fuel transportation
program and by the director in the administration of that program.
Sec.
122.077.
For
the purpose of promoting the use of energy efficient products to
reduce greenhouse gas emissions in this state, the director of
housing
and
development
shall establish an energy star rebate program under which the
director may provide rebates to consumers for household devices
carrying the energy star label indicating that the device meets the
energy efficiency criteria of the energy star program established by
the United States department of energy and the United States
environmental protection agency. The director shall adopt rules under
Chapter 119. of the Revised Code that are necessary for successful
and efficient administration of the energy star rebate program and
shall specify in the rules that grant availability is limited to
federal stimulus funds or any other funds specifically appropriated
for such a program.
Sec.
122.08.
(A)
There is hereby created within the
department
of housing and
development
services
agency
an
office to be known as the office of small business and
entrepreneurship. The office shall be under the supervision of a
manager appointed by the director of
housing
and
development
services
.
(B)
The office shall do all of the following:
(1)
Act as liaison between the small business community and state
governmental agencies;
(2)
Furnish information and technical assistance to persons and small
businesses concerning the establishment and maintenance of a small
business, and concerning state laws and rules relevant to the
operation of a small business. In conjunction with these duties, the
office shall keep a record of all proposed and currently effective
state agency rules affecting small businesses, and may testify before
the joint committee on agency rule review concerning any proposed
rule affecting small businesses.
(3)
Prepare and publish the small business register under section 122.081
of the Revised Code;
(4)
Receive complaints from small businesses concerning governmental
activity, compile and analyze those complaints, and periodically make
recommendations to the governor and the general assembly on changes
in state laws or agency rules needed to eliminate burdensome and
unproductive governmental regulation to improve the economic climate
within which small businesses operate;
(5)
Receive complaints or questions from small businesses and direct
those businesses to the appropriate governmental agency. If, within a
reasonable period of time, a complaint is not satisfactorily resolved
or a question is not satisfactorily answered, the office shall, on
behalf of the small business, make every effort to secure a
satisfactory result. For this purpose, the office may consult with
any state governmental agency and may make any suggestion or request
that seems appropriate.
(6)
Utilize, to the maximum extent possible, the printed and electronic
media to disseminate information of current concern and interest to
the small business community and to make known to small businesses
the services available through the office. The office shall publish
such books, pamphlets, and other printed materials, and shall
participate in such trade association meetings, conventions, fairs,
and other meetings involving the small business community, as the
manager considers appropriate.
(7)
Prepare a description of the activities of the office for inclusion
in the
development
services agency's
department's
annual
report to the governor and general assembly;
(8)
Operate the Ohio first-stop business connection to assist individuals
in identifying and preparing applications for business licenses,
permits, and certificates and to serve as a public distributor for
all forms, applications, and other information related to business
licensing. Each state agency, board, and commission shall cooperate
in providing assistance, information, and materials to enable the
connection to perform its duties under this division.
(9)
Provide information to individuals about the resources available on
the OhioMeansJobs web site and through the local OhioMeansJobs
one-stop systems established under section 6301.08 of the Revised
Code that connect businesses with job seekers. As used in this
division, "OhioMeansJobs" has the same meaning as in
section 6301.01 of the Revised Code.
(C)
The office may, upon the request of a state agency, assist the agency
with the preparation of any rule that will affect small businesses.
(D)
The director of
housing
and
development
services
shall
assign employees and furnish equipment and supplies to the office as
the director considers necessary for the proper performance of the
duties assigned to the office.
Sec.
122.081.
(A)
The office of small business and entrepreneurship in the
department
of housing and
development
services
agency
shall
prepare and publish a "small business register" or contract
with any person as provided in this section to prepare and publish
the register. The small business register shall contain the following
information regarding each proposed rule recorded by the office of
small business and entrepreneurship:
(1)
The title and administrative code rule number of the proposed rule;
(2)
A brief summary of the proposed rule;
(3)
The date on which the proposed rule was recorded by the office of
small business and entrepreneurship; and
(4)
The name, address, and telephone number of an individual or office
within the
agency
department
that
proposed the rule who can provide information about the proposed
rule.
(B)
The small business register shall be published on a weekly basis. The
information required under division (A) of this section shall be
published in the register no later than two weeks after the proposed
rule to which the information relates is recorded by the office of
small business and entrepreneurship. The office shall furnish the
small business register, on a single copy or subscription basis, to
any person who requests it and pays a single copy price or
subscription rate fixed by the office. The office shall furnish the
chairpersons of the standing committees of the senate and house of
representatives having jurisdiction over small businesses with free
subscriptions to the small business register.
(C)
Upon the request of the office of small business and
entrepreneurship, the director of administrative services shall, in
accordance with the competitive selection procedure of Chapter 125.
of the Revised Code, let a contract for the compilation, printing,
and distribution of the small business register.
(D)
The office of small business and entrepreneurship shall adopt, and
may amend or rescind, in accordance with Chapter 119. of the Revised
Code, such rules as are necessary to enable it to properly carry out
this section.
Sec.
122.082.
The
department of
housing
and
development
shall provide for low-interest loans to small businesses, as defined
by rules adopted pursuant to the "Small Business Act," 72
Stat. 384 (1972), 15 U.S.C.A. 632, as amended, that are engaged in
the export of goods produced in this state. In carrying out the
purposes of this section, the department shall develop operating
procedures that are essentially the same as those of the United
States export-import bank.
Sec.
122.083.
(A)
The director of
housing
and
development
shall administer a shovel ready sites program to provide grants for
projects to port authorities and development entities approved by the
director. Grants may be used to pay the costs of any or all of the
following:
(1)
Acquisition of property, including options;
(2)
Preparation of sites, including brownfield clean-up activities;
(3)
Construction of road, water, telecommunication, and utility
infrastructure;
(4)
Payment of professional fees the amount of which shall not exceed
twenty per cent of the grant amount for a project.
(B)
The director shall adopt rules in accordance with Chapter 119. of the
Revised Code that establish procedures and requirements necessary for
the administration of the program, including a requirement that a
recipient of a grant enter into an agreement with the director
governing the use of the grant.
Sec.
122.085.
As
used in sections 122.085 to 122.0820 of the Revised Code:
(A)(1)
"Allowable costs" includes costs related to the following:
(a)
Acquisition of land and buildings;
(b)
Building construction;
(c)
Making improvements to land and buildings, including the following:
(i)
Expanding, reconstructing, rehabilitating, remodeling, renovating,
enlarging, modernizing, equipping, and furnishing buildings and
structures, including leasehold improvements;
(ii)
Site preparation, including wetland mitigation.
(d)
Planning or determining feasibility or practicability;
(e)
Indemnity or surety bonds and premiums on insurance;
(f)
Remediation, in compliance with state and federal environmental
protection laws, of environmentally contaminated property on which
hazardous substances exist under conditions that have caused or would
likely cause the property to be identified as contaminated by the
Ohio environmental protection agency or the United States
environmental protection agency;
(g)
Infrastructure improvements, including the following:
(i)
Demolition of buildings and other structures;
(ii)
Installation or relocation of water, storm water and sanitary sewer
lines, water and waste water treatment facilities, pump stations, and
water storage mechanisms and other similar equipment or facilities;
(iii)
Construction of roads, bridges, traffic control devices, and parking
lots and facilities;
(iv)
Construction of utility infrastructure such as natural gas, electric,
and telecommunications, including broadband and hookups;
(v)
Water and railway access improvements;
(vi)
Costs of professional services.
(2)
"Allowable costs" do not include administrative costs
assessed by or fees paid to the recipient of a grant.
(B)
"District public works integrating committees" means those
committees established under section 164.04 of the Revised Code.
(C)
"Eligible applicant" includes any political subdivision or
non-profit
nonprofit
economic development organization, and, with prior approval of the
director of
housing
and
development,
private, for-profit entities. "Eligible applicant" does not
include public or private institutions of higher education.
(D)
"Eligible project" includes projects that, upon completion,
will be sites and facilities primarily intended for commercial,
industrial, or manufacturing use. "Eligible projects" do
not include sites and facilities intended primarily for residential,
retail, or government use.
(E)
"Professional services" includes legal, environmental,
archeological, engineering, architectural, surveying, design, or
other similar services performed in conjunction with an eligible
project. "Professional services" also includes designs,
plans, specifications, surveys, estimates of costs, and other work
products.
Sec.
122.086.
(A)
There is hereby created the job ready site program to provide grants
to pay for allowable costs of eligible applicants for eligible
projects. The program shall be administered by the department of
housing
and
development.
All grants shall be awarded through one of the following two
processes:
(1)
The annual competitive process under sections 122.087 to 122.0811,
122.0814, and 122.0815 of the Revised Code;
(2)
The discretionary process under sections 122.0812 to 122.0815 of the
Revised Code.
(B)
The annual competitive process shall be administered by the
department of
housing
and
development
pursuant to rules adopted by the director of
housing
and
development
under Chapter 119. of the Revised Code. The rules shall not establish
criteria that have the effect of excluding applications for grants
from any county of the state.
(C)
The discretionary process shall be administered by the department of
housing
and
development
pursuant to guidelines established by the director of
housing
and
development.
Sec.
122.087.
The
director of
housing
and
development
shall establish an annual competitive process for making grants
described in section 122.086 of the Revised Code in accordance with
rules adopted under that section. At least two-thirds of the amounts
that may be distributed as grants each year under the job ready site
program shall be distributed under the annual competitive process.
Sec.
122.088.
In
order to be considered for a grant under the annual competitive
process, an eligible applicant shall fill out an application provided
by the department of
housing
and
development
and shall file it with the district public works integrating
committee with jurisdiction over the area in which the eligible
project is located.
Sec.
122.089.
An
eligible applicant shall provide all of the following on the annual
competitive process application:
(A)
Contact information for the eligible applicant;
(B)
A legal description of the property for which the grant is requested;
(C)
A summary of the proposed eligible project that includes all of the
following:
(1)
A general description of the eligible project, including individuals,
organizations, or other entities that will play a critical role in
the implementation of the project;
(2)
An explanation of the need for the eligible project, and the
predicted economic impact;
(3)
An explanation of the need for a grant from the job ready site
program;
(4)
The commitments required pursuant to division (A)(3) of section
122.0815 of the Revised Code.
(D)
A detailed summary of costs for the eligible project, including
supporting documents for cost estimates;
(E)
Sources of funding for the eligible project, including documentation
verifying the status of those funds;
(F)
Summary results of preliminary engineering studies and environmental
reviews, if any have been conducted;
(G)
A comprehensive marketing plan detailing how the eligible project
will be marketed upon completion, if appropriate;
(H)
Copies of resolutions or ordinances related to the eligible project,
including resolutions or ordinances adopted by the political
subdivision with jurisdiction over the geographic area in which the
eligible project is located;
(I)
Any other information the director of
housing
and
development
requests on the application form.
Sec.
122.0810.
(A)
Each application for a grant pursuant to the annual competitive
process received by a district public works integrating committee
shall be evaluated by the executive committee of the district
committee. In conducting the evaluation, the executive committee
shall determine whether the application for the proposed eligible
project is complete and whether the project meets the requirements of
section 122.0815 of the Revised Code. If the application is complete
and the eligible project meets the requirements of section 122.0815
of the Revised Code, the executive committee shall prioritize the
eligible project pursuant to section 122.0816 of the Revised Code and
pursuant to local priorities, as those priorities are determined by
the executive committee, with all other eligible projects with
complete applications that meet the requirements of section 122.0815
of the Revised Code. If the application is incomplete or the project
does not meet the requirements of section 122.0815 of the Revised
Code, the executive committee shall notify the applicant of the
deficiencies and the period of time the applicant has to correct the
deficiencies and submit the corrections to the executive committee.
Failure to correct deficiencies within the time designated by the
executive committee shall disqualify the project from consideration
for a grant during the annual competitive process for that year.
The
executive committee, by the affirmative vote of a majority of all its
members, shall select up to three eligible projects from the projects
it has prioritized each year pursuant to the annual competitive
process. The executive committee shall forward the applications and
any accompanying information for each of the selected eligible
projects to the department of
housing
and
development
in the time and manner required by the rules governing the annual
competitive process for the job ready site program.
(B)
For a district public works integrating committee that does not have
an executive committee, the full committee shall perform the
functions assigned to the executive committee under section 122.0816
of the Revised Code and division (A) of this section.
(C)
An executive committee, or a district committee that does not have an
executive committee, may appoint a working group of committee members
and staff to perform the functions of those committees as provided in
this section.
Sec.
122.0811.
The
department of
housing
and
development
shall evaluate each eligible project selected pursuant to section
122.0810 of the Revised Code to determine whether the application for
the proposed eligible project is complete and whether it meets the
requirements of section 122.0815 of the Revised Code. If the
application is complete and the project meets the requirements of
section 122.0815 of the Revised Code, the department shall notify the
eligible applicant that the application is complete and shall
prioritize the eligible project pursuant to section 122.0816 of the
Revised Code with all other eligible projects with complete
applications that meet the requirements. If the application is
incomplete or the project does not meet the requirements of section
122.0815 of the Revised Code, the department shall notify the
applicant of the deficiencies and the period of time the applicant
has to correct the deficiencies and submit the corrections to the
department. Failure to correct deficiencies within the time
designated by the department shall disqualify the project from
consideration for a grant during the annual competitive process for
that year.
The
director, on completion of the evaluations and prioritization, shall
make a recommendation to the controlling board asking for approval to
make grants for the eligible projects selected by the director. The
director shall take into consideration the geographic diversity of
awards when making the selection of eligible projects to receive
grants.
Sec.
122.0812.
The
director of
housing
and
development
shall establish a discretionary process that permits the director to
make grants described in section 122.086 of the Revised Code in
situations that include those in which the timing of a proposed
eligible project is such that the annual competitive process is not
suitable. The director, as part of the guidelines established for the
discretionary process for the job ready site program, shall establish
all the procedures and requirements governing application for the
discretionary grants.
Sec.
122.0813.
On
receipt of an application for a discretionary grant for an eligible
project, the director of
housing
and
development
shall evaluate it to determine whether the application for the
proposed eligible project is complete and whether the eligible
project meets the requirements of section 122.0815 of the Revised
Code. If the application is complete and the project meets the
requirements of section 122.0815 of the Revised Code, the director
shall make a recommendation to the controlling board asking for
approval to make the discretionary grant for the eligible project. If
the application is incomplete or the project does not meet the
requirements of section 122.0815 of the Revised Code, the department
shall notify the applicant of the deficiencies and work with the
applicant to correct the deficiencies. If the deficiencies are
corrected, the director shall make a recommendation to the
controlling board asking for approval to make the discretionary grant
for the eligible project.
Sec.
122.0814.
If
the controlling board approves a grant for an eligible project
pursuant to the annual competitive process or the discretionary
process, the director of
housing
and
development
shall enter into an agreement with the eligible applicant to provide
the grant for the project. The agreement shall be executed prior to
the payment or disbursement of any funds under the grant and shall
contain the following provisions:
(A)
A designation of a single officer or employee of the eligible
applicant who will serve as the manager of the eligible project;
(B)
A detailed description of the scope of the work required under the
eligible project, including anticipated sources and uses of funds;
(C)
A designation of the percentage of the estimated total cost of the
project for which the grant will provide funding, which shall not
exceed seventy-five per cent of the cost;
(D)
Provisions for the recovery by the department of
housing
and
development
of grant funds for failure to meet the terms of the agreement;
(E)
A requirement that annual reports be made by the eligible applicant
on the progress of the eligible project and any other information
about the status of the project as required by the guidelines and
rules established for the job ready site program;
(F)
Any other provisions the director determines necessary.
Sec.
122.0815.
(A)
A project shall meet the following requirements in order to be
considered for a grant under the annual competitive process:
(1)
The application for the grant is made by an eligible applicant.
(2)
The project for which the application is made is an eligible project.
(3)
The eligible applicant commits to all the following:
(a)
To use the grant to pay only allowable costs for the eligible
project;
(b)
Not to use the grant to fund more than seventy-five per cent of the
total cost of the eligible project;
(c)
Not to use more than ten per cent of the grant amount to pay the
costs of professional services under the eligible project.
(4)
The grant amount requested does not exceed five million dollars.
(5)
The eligible applicant and the eligible project comply with any other
criteria the director of
housing
and
development
determines is necessary.
(B)
A project shall meet the requirements described in divisions (A)(1)
to (4) of this section in order to be considered for a grant under
the discretionary process.
Sec.
122.0816.
The
department of
housing
and
development
and the executive committees of district public works integrating
committees shall apply the following factors to eligible projects
under the annual competitive process to determine a priority order
for the eligible projects subject to that process:
(A)
The potential economic impact of the eligible project;
(B)
The potential impact of the eligible project on economic distress;
(C)
The amount of local, federal, and private funding available for the
eligible project;
(D)
The demonstrated need for the eligible project;
(E)
The strength of the eligible project's marketing plan, if
appropriate;
(F)
The level of financial need;
(G)
Any other factor the director of
housing
and
development
determines should be considered.
Sec.
122.0817.
In
accordance with the guidelines established to govern the
discretionary process and the rules adopted to govern the annual
competitive process for the job ready site program, the director of
housing
and
development
shall publish an annual report that includes the following:
(A)
Details on each grant awarded pursuant to the program;
(B)
The status of projects funded in previous years;
(C)
The amount of grants awarded for projects in economically distressed
areas and, to the extent possible, the impact of those grants in
those areas.
Sec.
122.09.
(A)
As used in this section:
(1)
"Development costs" means expenditures paid or incurred by
the property owner in completing a certified transformational mixed
use development project, including architectural or engineering fees
paid or incurred in connection with the project and expenses incurred
before the date the project is certified by the tax credit authority
under division (C) of this section. In the case of a certified
transformational mixed use development project that is part of a
larger contiguous project that is planned to be completed in phases,
"development costs" include only expenditures associated
with the portion of the project that is certified by the tax credit
authority and do not include expenditures incurred for other phases
of the project.
(2)
"Owner" means a person or persons holding a fee simple or
leasehold interest in real property, including interests in real
property acquired through a capital lease arrangement. "Owner"
does not include the state or a state agency, or any political
subdivision as defined in section 9.23 of the Revised Code. For the
purpose of this division, "fee simple interest," "leasehold
interest," and "capital lease" shall be construed in
accordance with generally accepted accounting principles.
(3)
"Transformational mixed use development" means a project
that consists of new construction or the redevelopment,
rehabilitation, expansion, or other improvement of vacant buildings
or structures, or a combination of the foregoing, and that:
(a)
Will have a transformational economic impact on the development site
and the surrounding area;
(b)
Integrates some combination of retail, office, residential,
recreation, structured parking, and other similar uses into one mixed
use development; and
(c)
Satisfies one of the following criteria:
(i)
If the development site is located within ten miles of a major city,
the project includes at least one new or previously vacant building
that is fifteen or more stories in height or has a floor area of at
least three hundred fifty thousand square feet, or after completion
will be the site of employment accounting for at least four million
dollars in annual payroll, or includes two or more buildings that are
connected to each other, are located on the same parcel or on
contiguous parcels, and that collectively have a floor area of at
least three hundred fifty thousand square feet;
(ii)
If the development site is not located within ten miles of a major
city, the project includes at least one new or previously vacant
building that is two or more stories in height or has a floor area of
at least seventy-five thousand square feet or two or more new
buildings that are located on the same parcel or on contiguous
parcels and that collectively have a floor area of at least
seventy-five thousand square feet.
"Transformational
mixed use development" may include a portion of a larger
contiguous project that is planned to be completed in phases as long
as the phases collectively meet the criteria described in division
(A)(3) of this section.
(4)
"Increase in tax collections" means the difference, if
positive, of the amount of state and local taxes derived from
economic activity occurring within the development site and the
surrounding area during a period of time minus the amount of such
taxes that are estimated to be derived from such economic activity in
that site and surrounding area during the same period if the
transformational mixed use project were not completed.
(5)
"Completion period" means the time period beginning on the
day after a transformational mixed use development is certified by
the tax credit authority and ending on the fifth anniversary of the
day the project is completed.
(6)
"Insurance company" means a person subject to the tax
imposed under section 5725.18 or 5729.03 of the Revised Code.
(7)
"Contribute capital" means to invest, loan, or donate cash
in exchange for an equity interest in an asset, a debt instrument, or
no consideration.
(8)
"Major city" means a municipal corporation that has a
population greater than one hundred thousand.
(9)
"Tax credit authority" means the tax credit authority
created under section 122.17 of the Revised Code.
(10)
"Adjusted development costs" means the development costs
attributed to a complete transformational mixed use development
project minus the sum of the capital contributions of any insurance
companies that are preliminarily approved for a tax credit in
connection with the same project.
(11)
A "property owner's share" of the increase in tax
collections equals the product obtained by multiplying the total
increase in tax collections since the date the transformational mixed
use development project was certified by a fraction, the numerator of
which is the adjusted development costs and the denominator of which
is the actual development costs attributed to the project.
(12)
An "insurance company's share" of the increase in tax
collections equals the product obtained by multiplying the total
increase in tax collections since the date the transformational mixed
use development project was certified by a fraction, the numerator of
which is the insurance company's capital contribution to the project
and the denominator of which is the actual development costs
attributed to the project.
(B)
The owner of one or more parcels of land in this state within which a
transformational mixed use development is planned or an insurance
company that contributes capital to be used in the planning or
construction of such a development may apply to the tax credit
authority for certification of the development and preliminary
approval of a tax credit. Each application shall be filed in the form
and manner prescribed by the director of
housing
and
development
and shall, at minimum, include a development plan comprised of all of
the following information:
(1)
The location of the development site and an indication of whether it
is located within ten miles of a major city;
(2)
A detailed description of the proposed transformational mixed use
development including site plans, construction drawings,
architectural renderings, or other means sufficient to convey the
appearance, size, purposes, capacity, and scope of the project and,
if applicable, previously completed and future phases of the project;
(3)
A viable financial plan that estimates the development costs that
have been or will be incurred in the completion of the project and
that designates a source of financing or a strategy for obtaining
financing;
(4)
An estimated schedule for the progression and completion of the
project including, if applicable, previously completed and future
phases of the project;
(5)
An assessment of the projected economic impact of the project on the
development site and the surrounding area;
(6)
Evidence that the increase in tax collections during the completion
period will exceed ten per cent of the estimated development costs
reported under division (B)(3) of this section;
(7)
If the applicant is an insurance company that is not the property
owner, the amount of the insurance company's capital contribution to
the development and the date on which it was or will be made;
(8)
Evidence that the project will not be completed unless the applicant
receives the credit.
(C)(1)
In determining whether to certify a project that is the subject of an
application submitted under division (B) of this section, the tax
credit authority shall consider the potential impact of the
transformational mixed use development on the development site and
the surrounding area in terms of architecture, accessibility to
pedestrians, retail entertainment and dining sales, job creation,
property values, connectivity, and revenue from sales, income,
lodging, and property taxes. The tax credit authority shall not
certify a project unless it satisfies the following conditions:
(a)
The project qualifies as a transformational mixed use development and
satisfies all other criteria prescribed by this section or by rule of
the director of
housing
and
development;
(b)
The estimated increase in tax collections during the completion
period exceeds ten per cent of the estimated development costs for
the project reported under division (B)(3) of this section;
(c)
The project will not be completed unless the applicant receives the
credit;
(d)
If the development site is located within ten miles of a major city,
the estimated development costs to complete the project plus, if
applicable, the estimated expenditures that have been or will be
incurred to complete all other contiguous phases of the project,
exceed fifty million dollars.
In
making its determination of whether or not to approve an application,
the tax credit authority may conduct an interview of the applicant.
(2)
If the tax credit authority approves an application, the authority
shall issue a statement certifying the associated transformational
mixed use development project and preliminarily approving a tax
credit. The statement shall stipulate that receipt of a tax credit
certificate is contingent upon completion of the transformational
mixed use development as described in the development plan. The
statement shall specify the estimated amount of the tax credit, but
state that the amount of the credit is dependent upon determination
of the actual development costs attributed to the project and, unless
the tax credit authority grants a request by the property owner under
division (F) of this section, of the increase in tax collections
during the completion period.
(3)
Except as otherwise provided in this division, if the applicant is an
insurance company that is not the property owner, the estimated
amount of the tax credit shall equal ten per cent of the insurance
company's capital contribution to the project as reported in the
development plan pursuant to division (B)(7) of this section. Except
as otherwise provided in this division, if the applicant is the
property owner, the estimated amount of the tax credit shall equal
ten per cent of the estimated development costs for the project as
reported in the development plan pursuant to division (B)(3) of this
section minus any estimated credit amounts that have been
preliminarily approved for insurance companies contributing capital
to the project. The estimated credit amounts may be reduced by the
tax credit authority as a condition of certifying the project if such
a reduction is necessary to comply with the limitations on the amount
of credits that may be preliminarily approved as prescribed by
division (C)(5) of this section. The estimated credit amounts shall
not be adjusted after the statement described in division (C)(2) of
this section has been issued.
(4)
If the tax credit authority denies an application, the authority
shall notify the applicant of the reason or reasons for such
determination. The authority's determination is final, but an
applicant may revise and resubmit a previously denied application.
(5)(a)
The tax credit authority shall not certify any transformational mixed
use development projects after June 30, 2025.
(b)
The tax credit authority may not preliminarily approve more than one
hundred million dollars of estimated tax credits in each of fiscal
years 2022, 2023, 2024, and 2025.
(c)
Not more than eighty million dollars of estimated tax credits in each
such fiscal year may be preliminarily approved in connection with
projects that are located within ten miles of a major city.
(d)
Not more than forty million dollars of estimated tax credits may be
preliminarily approved in connection with the same transformational
mixed use development project.
(6)
If the dollar amount of tax credits applied for under division (B) of
this section in connection with projects that are located within ten
miles of a major city exceeds eighty million dollars for a fiscal
year, the tax credit authority shall rank those applications and
certify the associated projects in order, starting with the project
that presents the best combination of economic value and
transformational impact. If the dollar amount of tax credits applied
for in connection with projects not located within ten miles of a
major city exceeds twenty million dollars for a fiscal year, the tax
credit authority shall rank those applications and certify the
associated projects in order, starting with the project that presents
the best combination of economic value and transformational impact.
In either case, the authority shall consider the following factors in
ranking the applications:
(a)
The projected increase in tax collections during the completion
period as a percentage of the total amount of estimated tax credits
that would be preliminarily approved in connection with the project;
(b)
The economic impact of the project on the development site and the
surrounding area and the impact of the project in terms of
architecture, accessibility to pedestrians, retail entertainment and
dining sales, job creation, property values, and connectivity;
(c)
The expeditiousness of the schedule for completing the project,
realizing the increase in tax collections, and attaining the economic
and other impacts on the development site and the surrounding area.
(D)
Within twelve months of the date a project is certified, the property
owner shall provide the tax credit authority with an updated schedule
for the progression and completion of the project and documentation
sufficient to demonstrate that construction of the project has begun.
If the property owner does not provide the schedule and documentation
or if construction of the project has not begun within the time
prescribed by this division, the tax credit authority shall rescind
certification of the project and send notice of the rescission to the
property owner and each insurance company that is preliminarily
approved for a tax credit in connection with the project. A property
owner that receives notice of rescission may submit a new application
concerning the same project under division (B) of this section.
(E)
An applicant that is the property owner and is preliminarily approved
for a tax credit under this section may sell or transfer the rights
to that credit to one or more persons for the purpose of raising
capital for the certified project. The applicant shall notify the tax
credit authority upon selling or transferring the rights to the
credit. The notice shall identify the person or persons to which the
credit was sold or transferred and the credit amount sold or
transferred to each such person. Only an applicant that owns the
property may sell or transfer a credit under this division. A credit
may be divided among multiple purchasers through more than one
transaction but once a particular credit amount is acquired by a
person other than the applicant it may not be sold or transferred
again.
(F)
After a transformational mixed use development project is certified
and before it is completed, the property owner may request that the
value of the tax credit certificates awarded in connection with the
project be computed using the alternative method described in
division (I) of this section. The tax credit authority shall grant
the request if the authority determines, and a third party engaged by
the authority at the expense of the property owner affirms, that it
is reasonably certain that the increase in tax collections will
exceed ten per cent of the estimated development costs within one
year after the project is completed. Otherwise, the authority shall
deny the request and the amount of each credit awarded in connection
with the project shall be computed under division (H) of this
section. The authority's determination under this division shall be
delivered in writing and is final and not appealable.
(G)(1)
The property owner shall notify the tax credit authority upon
completion of a certified transformational mixed use development
project. The notification shall include a report prepared by a
third-party certified public accountant that contains a detailed
accounting of the actual development costs attributed to the project.
(2)
Upon receiving such a notice, unless the tax credit authority has
previously granted a request by the property owner under division (F)
of this section, the authority shall determine the increase in tax
collections since the date the project was certified by consulting
with the tax commissioner and with the tax administrator of any
municipal corporation that levies an income tax within the project
site and the surrounding area. The tax commissioner and the tax
administrators that are consulted pursuant to this division shall
provide the tax credit authority with any information that is
necessary to determine the increase in tax collections.
(3)
After determining the increase in tax collections under division
(G)(2) of this section, if required, and computing the value of the
tax credit under division (H) or (I) of this section, as applicable,
the tax credit authority shall issue a tax credit certificate to each
applicant that is preliminarily approved for a credit associated with
the project or to the person or persons to which such an applicant
sold or transferred the rights to the credit under division (E) of
this section. If the amount of the tax credit awarded to the property
owner is less than the credit amount estimated under division (C) of
this section and the property owner sold or transferred the rights to
the credit, the tax credit authority shall reduce the amount of each
tax credit certificate issued to each purchaser or recipient on a pro
rata basis unless the property owner requests an alternative
allocation of the credit.
(H)(1)
Unless the tax credit authority granted a request by the property
owner under division (F) of this section, the aggregate value of the
tax credit certificates issued under division (G) of this section to
the property owner and to any persons to whom the property owner sold
or transferred the rights to the credit shall equal the lesser of the
following:
(a)
Ten per cent of the adjusted development costs;
(b)
Five per cent of the adjusted development costs plus any amount by
which the property owner's share of the increase in tax collections
since the date the project was certified exceeds five per cent of the
adjusted development costs;
(c)
The estimated credit amount specified in the tax credit authority's
statement certifying the project and preliminarily approving the tax
credit under division (C) of this section.
(2)
The value of a tax credit certificate issued under division (G) of
this section to an insurance company that contributed capital to the
project shall equal the lesser of the following:
(a)
Ten per cent of the insurance company's actual capital contribution;
(b)
Five per cent of such capital contribution plus any amount by which
the insurance company's share of the increase in tax collections
since the date the project was certified exceeds five per cent of the
insurance company's capital contribution;
(c)
The estimated credit amount specified in the tax credit authority's
statement certifying the project and preliminarily approving the tax
credit under division (C) of this section.
(I)
If the tax credit authority granted a request by the property owner
under division (F) of this section, the value of the tax credit
certificates issued in connection with the transformational mixed use
development project shall be computed as follows:
(1)
For the property owner or any person to which the property owner sold
or transferred the rights to the credit, ten per cent of the actual
development costs attributed to the project. If the amount of the
credit is less than the credit amount estimated under division (C) of
this section and the property owner sold or transferred the rights to
the credit to more than one person, the authority shall reduce the
amount of each tax credit certificate on a pro rata basis unless the
property owner requests an alternative allocation of the credit.
(2)
For an insurance company that contributed capital to the project, ten
per cent of the insurance company's actual capital contribution.
(J)
If the value of a tax credit certificate was computed under division
(H) of this section for a project, the property owner, on or before
the thirtieth day following the first, second, third, fourth, and
fifth anniversaries of the date the certified transformational mixed
use development project is completed, may request in writing that the
tax credit authority update the increase in tax collections during
the completion period. Upon receiving such a request, the tax credit
authority shall update the increase in tax collections in the same
manner described by division (G) of this section. If the tax credit
authority determines that the value of the tax credit certificates
computed under division (H) of this section would be greater if
computed based on the updated increase in tax collections, the
authority shall issue an additional tax credit certificate to each
person that previously received a certificate for the project under
those divisions. The value of each additional tax credit certificate
shall equal the amount by which the tax credit certificate computed
under division (H) of this section upon completion of the project
would have been greater had the value of such certificate been
computed based on the updated increase in tax collections, less the
value of any additional tax credit certificates previously issued
under this division to the same person respecting the same project.
(K)
The aggregate value of all tax credit certificates issued under this
section for the same transformational mixed use development project
shall not exceed (1) ten per cent of the actual development costs of
that project or (2) the sum of all estimated credit amounts
preliminarily approved by the tax credit authority in connection with
the project.
(L)
Issuance of a tax credit certificate under this section does not
represent a verification or certification by the tax credit authority
of the actual development costs of the project or the capital
contributions to the project by an insurance company. Such amounts
are subject to inspection and examination by the superintendent of
insurance.
(M)
Upon the issuance of a tax credit certificate under division (G) or
(J) of this section, the tax credit authority shall certify to the
superintendent of insurance (1) the name of each person that was
issued a tax credit certificate, (2) whether the person is the
property owner, an insurance company that contributed capital to the
development, or a person that acquired the rights to the tax credit
certificate from the property owner, (3) the credit amount shown on
each tax credit certificate, and (4) any other information required
by the rules adopted under this section. A person that holds the
rights to a tax credit certificate issued under this section and that
is an insurance company may claim a tax credit under section 5725.35
or 5729.18 of the Revised Code.
(N)
The tax credit authority shall publish information about each
transformational mixed use development on the web site of the
department of
housing
and
development
not later than the first day of August following certification of the
project. The tax credit authority shall update the published
information annually until the project is complete and the credit or
credits are fully claimed. The published information shall include
all of the following:
(1)
The location of the transformational mixed use development and the
name by which it is known;
(2)
The estimated schedule for progression and completion of the project
included in the development plan pursuant to division (B)(4) of this
section;
(3)
The assessment of the projected economic impact of the project
included in the development plan pursuant to division (B)(5) of this
section;
(4)
The evidence supporting the estimated increase in tax collections
included in the development plan pursuant to division (B)(6) of this
section, except that the tax credit authority may omit any
proprietary or sensitive information included in such evidence;
(5)
The estimated development costs that have been or will be incurred in
completion of the project and, if applicable, the amount of the
insurance company's capital contribution to the development and the
date on which it was made, as reported in the development plan
pursuant to divisions (B)(3) and (7) of this section;
(6)
A copy of each report submitted to the tax credit authority by the
applicant under division (D) of this section.
(O)
The director, in accordance with Chapter 119. of the Revised Code,
shall adopt rules that establish all of the following:
(1)
Forms and procedures by which applicants may apply for a
transformational investment tax credit, and any deadlines for
applying;
(2)
Criteria and procedures for reviewing, evaluating, ranking, and
approving applications within the limitations prescribed by this
section, including rules prescribing the timing and frequency by
which the tax credit authority must rank applications and
preliminarily approve tax credits under division (C) of this section;
(3)
Eligibility requirements for obtaining a tax credit certificate under
this section;
(4)
The form of the tax credit certificate;
(5)
Reporting requirements and monitoring procedures;
(6)
Procedures for computing the increase in tax collections within the
project site and the surrounding area;
(7)
Forms and procedures by which property owners may request the
alternative method of computing the value of tax credit certificates
under division (I) of this section that are awarded in connection
with a project and criteria for evaluating and making a determination
on such requests;
(8)
Any other rules necessary to implement and administer this section.
Sec.
122.10.
Each
department, bureau, institution, agency, commission, or office of the
state government, shall, upon request, furnish to the department of
housing
and
development
any information it has available.
The
department of
housing
and
development
shall cooperate with each department, bureau, institution, agency,
commission, or office of the state government and shall furnish any
information it has available to such departments, bureaus,
institutions, agencies, commissions, or office upon their request.
The
department shall coordinate its services and activities with those of
state departments, bureaus, agencies, commissions, and offices to the
fullest extent possible in order to avoid duplication.
Sec.
122.11.
The
director of
housing
and
development
may employ and fix the compensation of technical and professional
personnel, who shall be in the unclassified civil service, and may
employ other personnel, who shall be in the classified civil service,
as necessary to carry out the provisions of sections 122.011 to
122.11, 122.17, and 122.18 of the Revised Code.
Sec.
122.121.
(A)
A local organizing committee, endorsing municipality, or endorsing
county that has entered into a joinder undertaking with a site
selection organization may apply to the director of
housing
and
development
services
,
on a form and in the manner prescribed by the director, for a grant
from the sports event grant fund created under section 122.122 of the
Revised Code with respect to a game to which either of the following
applies:
(1)
The organization accepts competitive bids to host the game.
(2)
The game is a one-time centennial commemoration of the founding of a
national football organization, association, or league.
The
amount of the grant shall be based on the projected incremental
increase in the receipts from the tax imposed under section 5739.02
of the Revised Code within the market area designated under division
(C) of this section, for the two-week period that ends at the end of
the day after the date on which the game will be held, that is
directly attributable, as determined by the director, to the
preparation for and presentation of the game. The director shall
determine the projected incremental increase in the tax imposed under
section 5739.02 of the Revised Code by using a formula approved by
the director in consultation with the tax commissioner. The
application shall include an estimate of the committee's,
municipality's, or county's qualifying costs under the game support
contract. The local organizing committee, endorsing municipality, or
endorsing county is eligible to receive a grant under this section
only if the projected incremental increase in receipts from the tax
imposed under section 5739.02 of the Revised Code, as determined by
the director, exceeds two hundred fifty thousand dollars. The amount
of the grant shall be not less than fifty per cent of the projected
incremental increase in receipts, as determined by the director, but
shall not exceed the lesser of two million dollars or the amount of
the committee's, municipality's, or county's qualifying costs under
the game support contract. The director shall disburse the grant to
the local organizing committee, endorsing municipality, or endorsing
county from the sports event grant fund.
(B)
If the director of
housing
and
development
services
approves
an application for a local organizing committee, endorsing
municipality, or endorsing county and that local organizing
committee, endorsing municipality, or endorsing county enters into a
joinder agreement with a site selection organization, the local
organizing committee, endorsing municipality, or endorsing county
shall file a copy of the joinder agreement with the director. The
grant shall be used exclusively by the local organizing committee,
endorsing municipality, or endorsing county to pay its qualifying
costs under the game support contract.
(C)
For the purposes of division (A) of this section, the director of
housing
and
development
services
,
in consultation with the tax commissioner, shall designate the market
area for a game. The market area shall consist of the combined
statistical area, as defined by the United States office of
management and budget, in which an endorsing municipality or
endorsing county is located.
(D)
A local organizing committee, endorsing municipality, or endorsing
county shall provide information required by the director of
housing
and
development
services
and
tax commissioner to enable the director and commissioner to fulfill
their duties under this section, including annual audited statements
of any financial records required by a site selection organization;
data obtained by the local organizing committee, endorsing
municipality, or endorsing county relating to attendance at a game
and to the economic impact of the game; and financial records from
the committee, municipality, or county verifying its qualifying costs
under the game support contract. A local organizing committee, an
endorsing municipality, or an endorsing county shall provide an
annual audited financial statement if so required by the director and
commissioner, not later than the end of the fourth month after the
date the period covered by the financial statement ends.
(E)
Within thirty days after the game, the local organizing committee,
endorsing municipality, or endorsing county shall certify to the
director of
housing
and
development
services
a
statement of its qualifying costs under the game support contract and
a report about the economic impact of the game. The certification
shall be in the form and substance required by the director,
including, but not limited to, a final income statement for the event
showing total revenue and expenditures and revenue and expenditures
in the market area for the game, and ticket sales for the game and
any related activities for which admission was charged. The director
shall determine, based on the reported information and the exercise
of reasonable judgment, the incremental increase in receipts from the
tax imposed under section 5739.02 of the Revised Code directly
attributable to the game and the committee's, municipality's, or
county's qualifying costs under the game support contract. If the
actual incremental increase in sales tax receipts is less than the
projected incremental increase in such receipts, or if the actual
qualifying costs are less than the estimated qualifying costs, the
director may require the local organizing committee, endorsing
municipality, or endorsing county to refund to the state all or a
portion of the grant. Any refund remitted under this division shall
be credited to the sports event grant fund.
(F)
No disbursement may be made under this section if the director of
housing
and
development
services
determines
that it would be used for the purpose of soliciting the relocation of
a professional sports franchise located in this state.
(G)
This section may not be construed as creating or requiring a state
guarantee of obligations imposed on an endorsing municipality or
endorsing county under a game support contract or any other agreement
relating to hosting one or more games in this state.
Sec.
122.131.
There
is hereby created the employee ownership assistance program to be
administered by the director of
housing
and
development.
The director may employ any professional and technical personnel and
other employees that are necessary to comply with sections 122.13 to
122.136 of the Revised Code. The director shall assist an individual
or group of individuals, who seek assistance in the establishment of
an employee-owned corporation. The director shall inform local
government, business organizations, labor organizations, and others
in the state of the availability of the program and its services
established pursuant to sections 122.13 to 122.136 of the Revised
Code.
Sec.
122.132.
The
director of
housing
and
development
shall do all of the following:
(A)
Develop, collect, and disseminate information useful to individuals
and organizations throughout the state in undertaking or promoting
the establishment and successful operation of employee-owned
corporations;
(B)
Assist in the evaluation of the feasibility and economic vitality of
employee-owned corporation proposals received in the employee
ownership assistance program;
(C)
Provide technical assistance and counseling services to individuals
who seek to form an employee-owned corporation;
(D)
Provide assistance and counseling in the operation of an
employee-owned corporation;
(E)
Assist individuals in obtaining financing for the purchase and
operation of an employee-owned corporation;
(F)
Promote and coordinate the efforts of local, state, federal, or
private organizations to assist in the formation or operation of
employee-owned corporations;
(G)
Recommend appropriate legislative or executive actions to enhance
opportunities for employee-owned corporations in this state;
(H)
Prescribe all forms for assistance requests and publish materials
describing the employee ownership assistance program's services;
(I)
Adopt rules under Chapter 119. of the Revised Code for the conduct of
the employee ownership assistance program.
Sec.
122.133.
The
director of
housing
and
development
shall publicize the availability of the employee ownership assistance
program and its services to local governments and to business and
labor organizations and shall coordinate with local governments,
business and labor organizations, and other state agencies in
obtaining information relating to the possible relocation of
operations or closing of a business establishment.
Sec.
122.134.
If
the director of
housing
and
development
becomes aware that a business establishment is closing or relocating
operations, the director, pursuant to a request received under
section 122.135 of the Revised Code, may conduct an initial study of
the feasibility of the employees of the business establishment
establishing an employee-owned corporation to continue the operations
of the business establishment, or to operate another business, and
may hold an informational meeting of representatives of the local
community, the business establishment, representatives of any
employee organization, and affected employees to explain the services
available from the department of
housing
and
development
relative to the formation of an employee-owned corporation.
Sec.
122.135.
Any
individual, group of individuals, employees, organization of
employees, or local community affected by any closing or relocation
of a business establishment's operations or the proposed closing or
relocation of a business establishment's operations may request, in a
manner prescribed by the director of
housing
and
development,
assistance in efforts to study the feasibility of the establishment
of an employee-owned corporation and any other assistance the
director may provide pursuant to sections 122.13 to 122.136 of the
Revised Code.
Sec.
122.136.
The
director of
housing
and
development
services
shall
prepare and submit a report to the governor and the general assembly
annually on or before the first day of August of the services and
activities of the employee ownership assistance program for the
preceding calendar year. The director shall include in the report
information regarding the number, names, and locations of business
establishments that have been or likely will be assisted as
employee-owned corporations; recommendations on how to better operate
the program; information regarding the effectiveness of the program
in maintaining and improving employment in the state; and the number
of individuals affected by the activities of the program.
Sec.
122.14.
(A)
There is hereby created in the state treasury the roadwork
development fund. The fund shall consist of the investment earnings
of the security deposit fund created by section 4509.27 of the
Revised Code and revenue transferred to it by the director of budget
and management from the highway operating fund created in section
5735.051 of the Revised Code. The fund shall be used by the
department
of housing and
development
services
agency
in
accordance with Section 5a of Article XII, Ohio Constitution, to make
road improvements associated with retaining or attracting business
for this state, including both of the following:
(1)
Construction, reconstruction, maintenance, or repair of public roads
that provide access to a public airport or are located within a
public airport;
(2)
Construction, reconstruction, maintenance, or repair of public roads
that provide or improve access to tourism attractions.
(B)
All investment earnings of the fund shall be credited to the fund.
Sec.
122.15.
As
used in this section and sections 122.151 to 122.156 of the Revised
Code:
(A)
"Affiliate" means a person that directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is
under common control with another person. For the purposes of this
division, a person is "controlled by" another person if the
controlling person holds, directly or indirectly, the majority voting
or ownership interest in the controlled person or has control over
the day-to-day operations of the controlled person by contract or by
law.
(B)
"Border county" means a county in this state that borders
another state.
(C)
"Closing date" means the date on which a rural business
growth fund has collected all of the amounts specified by divisions
(G)(1) and (2) of section 122.151 of the Revised Code.
(D)
"Credit-eligible capital contribution" means an investment
of cash by a person subject to the tax imposed by section 3901.86,
5725.18, 5729.03, or 5729.06 of the Revised Code in a rural business
growth fund that equals the amount specified on a notice of tax
credit allocation issued by the department of
housing
and
development
under division (I)(1) of section 122.151 of the Revised Code. The
investment shall purchase an equity interest in the fund or purchase,
at par value or premium, a debt instrument issued by the fund that
meets all of the following criteria:
(1)
The debt instrument has an original maturity date of at least five
years after the date of issuance.
(2)
The debt instrument has a repayment schedule that is not faster than
a level principal amortization over five years.
(3)
The debt instrument has no interest, distribution, or payment
features dependent on the fund's profitability or the success of the
fund's growth investments.
(E)
"Eligible investment authority" means the amount stated on
the notice issued under division (F) of section 122.151 of the
Revised Code certifying the rural business growth fund. Sixty per
cent of a fund's eligible investment authority shall be comprised of
credit-eligible capital contributions.
(F)
"Full-time equivalent employee" means the quotient obtained
by dividing the total number of hours for which employees were
compensated for employment over the preceding twelve-month period by
two thousand eighty.
(G)
"Growth investment" means any capital or equity investment
in a rural business concern or any loan to a rural business concern
with a stated maturity of at least one year. A secured loan or the
provision of a revolving line of credit to a rural business concern
is a growth investment only if the rural business growth fund obtains
an affidavit from the president or chief executive officer of the
rural business concern attesting that the rural business concern
sought and was denied similar financing from a commercial bank.
(H)
"Operating company" means any business that has its
principal business operations in this state, has fewer than two
hundred fifty employees and not more than fifteen million dollars in
net income for the preceding taxable year, and that is none of the
following:
(1)
A country club;
(2)
A racetrack or other facility used for gambling;
(3)
A store the principal purpose of which is the sale of alcoholic
beverages for consumption off premises;
(4)
A massage parlor;
(5)
A hot tub facility;
(6)
A suntan facility;
(7)
A business engaged in the development or holding of intangibles for
sale;
(8)
A private or commercial golf course;
(9)
A business that derives or projects to derive fifteen per cent or
more of its net income from the rental or sale of real property,
except any business that is a special purpose entity principally
owned by a principal user of that property formed solely for the
purpose of renting, either directly or indirectly, or selling real
property back to such principal user if such principal user does not
derive fifteen per cent or more of its gross annual revenue from the
rental or sale of real property;
(10)
A publicly traded business.
For
the purposes of this division, "net income" means federal
gross income as required to be reported under the Internal Revenue
Code less federal and state taxes imposed on or measured by income.
(I)
"Population" means that shown by the most recent decennial
census or the most recent annual population estimate published or
released by the United States census bureau, whichever is more
recent.
(J)
A business's "principal business operations" are in this
state if at least eighty per cent of the business's employees reside
in this state, the individuals who receive eighty per cent of the
business's payroll reside in this state, or the business has agreed
to use the proceeds of a growth investment to relocate at least
eighty per cent of its employees to this state or pay at least eighty
per cent of its payroll to individuals residing in this state. For
the purpose of growth investments by a program two rural business
growth fund, a business's "principal business operations"
are also in this state if it is headquartered in a border county and
at least sixty-five per cent of the business's employees reside in
this state, the individuals who receive sixty-five per cent of the
business's payroll reside in this state, or the business has agreed
to use the proceeds of a growth investment to relocate at least
sixty-five per cent of its employees to this state or pay at least
sixty-five per cent of its payroll to individuals residing in this
state.
(K)
"Program one" refers to rural business growth funds
certified by the department of
housing
and
development
under section 122.151 of the Revised Code before
the
effective date of this amendment
September
30, 2021
.
(L)
"Program two" refers to rural business growth funds
certified by the department of
housing
and
development
under section 122.151 of the Revised Code on or after
the
effective date of this amendment
September
30, 2021
.
(M)
"Rural area" means any county in this state having a
population less than two hundred thousand.
(N)
"Rural business concern" means an operating company that
has its principal business operations located in a rural area.
(O)
"Rural business growth fund" and "fund" mean an
entity certified by the department of
housing
and
development
under section 122.151 of the Revised Code.
(P)
"Taxable year" means the calendar year ending on the
thirty-first day of December next preceding the day the annual
statement is required to be returned under section 5725.18 or 5729.02
of the Revised Code.
(Q)
"Tier one rural area" means any county in this state having
a population less than two hundred thousand and more than one hundred
fifty thousand.
(R)
"Tier two rural area" means any county in this state having
a population of more than seventy-five thousand but not more than one
hundred fifty thousand.
(S)
"Tier three rural area" means any county in this state
having a population of not more than seventy-five thousand.
Sec.
122.151.
(A)
A person that has developed a business plan to invest in rural
business concerns in this state and has successfully solicited
private investors to make credit-eligible capital contributions in
support of the plan may apply to the department of
housing
and
development
for certification as a rural business growth fund. The application
shall include all of the following:
(1)
The total eligible investment authority sought by the applicant under
the business plan;
(2)
Documents and other evidence sufficient to prove, to the satisfaction
of the agency, that the applicant meets all of the following
criteria:
(a)
The applicant or an affiliate of the applicant is licensed as a rural
business investment company under 7 U.S.C. 2009cc, or as a small
business investment company under 15 U.S.C. 681.
(b)
As of the date the application is submitted, the applicant has
invested more than one hundred million dollars in operating
companies, including at least fifty million dollars in operating
companies located in rural areas. In computing investments under this
division, the applicant may include investments made by affiliates of
the applicant and investments made in businesses that are not
operating companies but would qualify as operating companies if the
principal business operations were located in this state.
(3)
The industries in which the applicant proposes to make growth
investments and the percentage of the growth investments that will be
made in each industry. The applicant shall identify each industry by
using the codes utilized by the north American industry
classification system.
(4)
An estimate of the number of new full-time equivalent employees and
retained full-time equivalent employees that will result from the
applicant's growth investments;
(5)
A revenue impact assessment for the applicant's proposed growth
investments prepared by a nationally recognized third-party
independent economic forecasting firm using a dynamic economic
forecasting model. The revenue impact assessment shall analyze the
applicant's business plan over the ten years following the date the
application is submitted to the agency.
(6)
A signed affidavit from each investor successfully solicited by the
applicant to make a credit eligible capital contribution in support
of the business plan. Each affidavit shall include information
sufficient for the agency and the superintendent of insurance to
identify the investor and shall state the amount of the investor's
credit-eligible capital contribution.
(7)
A nonrefundable application fee of five thousand dollars.
(B)(1)
Except as provided in division (B)(2) of this section, the agency
shall review and make a determination with respect to each
application submitted under division (A) of this section within sixty
days of receipt. The agency shall review and make determinations on
the applications in the order in which the applications are received
by the agency. Applications received by the agency on the same day
shall be deemed to have been received simultaneously. The agency
shall approve not more than seventy-five million dollars in eligible
investment authority and not more than forty-five million dollars in
credit-eligible capital contributions under this section for program
one rural business growth funds. The agency shall approve not more
than seventy-five million dollars in eligible investment authority
and not more than forty-five million dollars in credit-eligible
contributions under this section for program two rural business
growth funds.
(2)
If the agency denies an application for certification as a fund, and
approving a subsequently submitted application would result in
exceeding the dollar limitation on eligible investment authority or
credit-eligible contributions prescribed by division (B)(1) of this
section assuming the previously denied application were completed,
clarified, or cured under division (D) of this section, the agency
shall refrain from making a determination on the subsequently
submitted application until the previously denied application is
reconsidered or the fifteen-day period for submitting additional
information respecting that application has passed, whichever comes
first.
(C)
The agency shall deny an application submitted under this section if
any of the following are true:
(1)
The application is incomplete.
(2)
The application fee is not paid in full.
(3)
The applicant does not satisfy all the criteria described in division
(A)(2) of this section.
(4)
The revenue impact assessment submitted under division (A)(5) of this
section does not demonstrate that the applicant's business plan will
result in a positive economic impact on this state over a ten-year
period that exceeds the cumulative amount of tax credits that would
be issued under section 122.152 of the Revised Code if the
application were approved.
(5)
The credit-eligible capital contributions described in affidavits
submitted under division (A)(6) of this section do not equal sixty
per cent of the total amount of eligible investment authority sought
under the applicant's business plan.
(6)
The agency has already approved the maximum total eligible investment
authority and credit-eligible capital contributions allowed under
division (B) of this section.
(D)
If the agency denies an application under division (C) of this
section, the agency shall send notice of its determination to the
applicant. The notice shall include the reason or reasons that the
application was denied. If the application was denied for any reason
other than the reason specified in division (C)(6) of this section,
the applicant may provide additional information to the agency to
complete, clarify, or cure defects in the application. The additional
information must be submitted within fifteen days after the date the
notice of denial was dispatched by the agency. If the person submits
additional information within fifteen days, the agency shall
reconsider the application within thirty days after receiving the
additional information. The application shall be reviewed and
considered before any pending application submitted after the
original submission date of the reconsidered application. If the
person does not submit additional information within fifteen days
after dispatch of the notice of denial, the person may submit a new
application with a new submission date at any time.
(E)
If approving multiple simultaneously submitted applications would
result in exceeding the overall eligible investment limit prescribed
by division (B) of this section, the agency shall proportionally
reduce the eligible investment authority and the credit-eligible
capital contributions for each approved application as necessary to
avoid exceeding the limit.
(F)
The agency shall not deny a rural business growth fund application or
reduce the requested eligible investment authority for reasons other
than those described in divisions (C) and (E) of this section. If the
agency approves such an application, the agency shall issue a written
notice to the applicant certifying that the applicant qualifies as a
rural business growth fund and specifying the amount of the
applicant's eligible investment authority.
(G)
A fund shall do all of the following within sixty days after
receiving the certification issued under division (F) of this
section:
(1)
Collect the credit-eligible capital contributions from each investor
whose affidavit was included in the application. If the rural
business growth fund's requested eligible investment authority is
proportionally reduced under division (E) of this section, the
investor's required credit-eligible capital contribution shall be
reduced by the same proportion.
(2)
Collect one or more investments of cash that, when added to the
contributions collected under division (G)(1) of this section, equal
the fund's eligible investment authority. At least ten per cent of
the fund's eligible investment authority shall be comprised of equity
investments contributed directly or indirectly by affiliates of the
fund, including employees, officers, and directors of such
affiliates.
(H)
Within sixty-five days after receiving the certification issued under
division (F)(1) of this section, the fund shall send to the agency
documentation sufficient to prove that the amounts described in
divisions (G)(1) and (2) of this section have been collected. The
fund shall identify any affiliate of an investor described in
division (G)(1) of this section that will seek to claim the credit
allowed by section 122.152 of the Revised Code. If the fund fails to
fully comply with division (G) of this section, the fund's
certification shall lapse.
Eligible
investment authority and corresponding credit-eligible capital
contributions that lapse under this division do not count toward
limits on total eligible investment authority and credit-eligible
capital contributions prescribed by division (B) of this section.
Once eligible investment authority has lapsed, the agency shall first
award lapsed authority pro rata to each fund that was awarded less
than the requested eligible investment authority because of the
operation of division (E) of this section. Any remaining eligible
investment authority may be awarded by the agency to new applicants.
(I)
After receiving documentation sufficient to prove that the amounts
described in divisions (G)(1) and (2) of this section have been
collected, the agency shall issue the following notices:
(1)
To each investor or affiliate identified in division (H) of this
section, a notice of the amount and utilization schedule of the tax
credits allocated to that investor or affiliate as a result of its
credit-eligible capital contribution;
(2)
To the superintendent of insurance, a notice of the amount and
utilization schedule of the tax credits allocated to each investor
described in division (G)(1) of this section and any affiliate of
such investor who will seek to claim the credit allowed by section
122.152 of the Revised Code.
(J)
Application fees submitted to the agency pursuant to division (A)(7)
of this section shall be credited to the tax incentives operating
fund created under section 122.174 of the Revised Code, and shall be
used by the agency to administer sections 122.15 to 122.156 of the
Revised Code.
Sec.
122.152.
(A)
There is hereby allowed a nonrefundable tax credit for owners of tax
credit certificates issued by the
department
of housing and
development
services
agency
under
division (B) of this section. The credit may be claimed against the
tax imposed by section 3901.86, 5725.18, 5729.03, or 5729.06 of the
Revised Code.
(B)
On the closing date, a taxpayer that made a credit-eligible capital
contribution to a rural business growth fund shall be eligible for a
credit equal to the amount specified in the notice issued under
division (I)(1) of section 122.151 of the Revised Code. On or before
the third, fourth, fifth, and sixth anniversary dates of the closing
date, the
agency
department
shall
issue a tax credit certificate to the taxpayer specifying the
corresponding anniversary date and a credit amount equal to
one-fourth of the total credit authorized under this section. The
taxpayer or its identified affiliate may claim the credit amount for
the taxable year that includes the date specified on the certificate.
The taxpayer making a credit-eligible capital contribution and the
issuance of a tax credit certificate by the
agency
department
does
not represent a verification or certification by the
agency
department
of
compliance with the recapture provisions of section 122.153 of the
Revised Code. The tax credit issued under this division is subject to
recapture under section 122.153 of the Revised Code.
(C)
The credit shall be claimed in the order required under section
5725.98 or 5729.98 of the Revised Code as applicable. If the amount
of the credit for a taxable year exceeds the tax otherwise due for
that year, the excess may be carried forward for not more than four
ensuing taxable years. A taxpayer claiming a credit under this
section shall submit a copy of the tax credit certificate with the
taxpayer's annual statement for each taxable year in which the credit
is claimed.
Sec.
122.153.
(A)
The department of
housing
and
development
shall not be required to issue a tax credit certificate under section
122.152 of the Revised Code if either of the following applies:
(1)
The credit-eligible capital contribution was made in a program one
rural business growth fund that fails to:
(a)
Invest fifty per cent of its eligible investment authority in growth
investments within one year of the closing date; and
(b)
Invest one hundred per cent of its eligible investment authority in
growth investments in this state within two years of the closing
date.
(2)
The credit eligible contribution was made in a program two rural
business growth fund that fails to:
(a)
Invest twenty-five per cent of its eligible investment authority in
growth investments within one year of the closing date;
(b)
Invest fifty per cent of its eligible investment authority in growth
investments within two years of the closing date; and
(c)
Invest one hundred per cent of its eligible investment authority in
growth investments within three years of the closing date, including
seventy-five per cent of its eligible investment authority in rural
business concerns that have their principal business operations in
tier two or tier three rural areas, and twenty-five per cent of its
eligible investment authority in rural business concerns that have
their principal business operations in tier three rural areas. The
amount by which a rural business growth fund's growth investments in
rural business concerns that have their principal business operations
in tier one rural areas exceeds twenty-five per cent of the fund's
eligible investment authority shall not count towards the
satisfaction of the requirements prescribed by division (A)(2)(c) of
this section.
(B)
The agency shall recapture tax credits claimed under section 122.152
of the Revised Code if any of the following occur with respect to the
rural business growth fund:
(1)
The fund, after investing one hundred per cent of its eligible
investment authority in growth investments in this state, fails to
maintain that investment until the sixth anniversary of the closing
date. For the purposes of this division, an investment is maintained
even if the investment is sold or repaid so long as the fund
reinvests an amount equal to the capital returned or recovered by the
fund from the original investment, exclusive of any profits realized,
in other growth investments in this state within one year of the
receipt of such capital.
(2)
The fund makes a distribution or payment after the fund complies with
division (G) of section 122.151 of the Revised Code and before the
fund decertifies under division (D) of this section that results in
the fund having less than one hundred per cent of its eligible
investment authority invested in growth investments in this state.
(3)
The fund makes a growth investment in a rural business concern that
directly or indirectly through an affiliate owns, has the right to
acquire an ownership interest, makes a loan to, or makes an
investment in the fund, an affiliate of the fund, or an investor in
the fund. Division
(A)(3)
(B)(3)
of this section does not apply to investments in publicly traded
securities by a rural business concern or an owner or affiliate of a
rural business concern.
Before
recapturing one or more tax credits under this division, the agency
shall notify the fund of the reasons for the pending recapture. If
the fund corrects the violations outlined in the notice to the
satisfaction of the agency within thirty days of the date the notice
was dispatched, the agency shall not recapture the tax credits.
(C)(1)
The amount by which one or more growth investments by a program one
rural business growth fund in the same rural business concern exceeds
twenty per cent of the fund's eligible investment authority shall not
be counted as a growth investment for the purposes of this section.
The amount by which one or more growth investments by a program two
rural business growth fund in the same business concern exceeds five
million dollars shall not be counted as a growth investment for the
purposes of this section. A growth investment returned or repaid by a
rural business concern to a program one or program two rural business
growth fund and then reinvested by the fund in the same rural
business concern does not count as an investment in the same rural
business concern for the purposes of the limitations prescribed by
division (C)(1) of this section.
(2)
The aggregate amount of growth investments by all rural business
growth funds in the same rural business concern, including amounts
reinvested in a rural business concern following a returned or
repayment of a growth investment, shall not exceed fifteen million
dollars.
(3)
A growth investment in an affiliate of a rural business concern shall
be treated as a growth investment in that rural business concern for
the purposes of division (C) of this section.
(D)
If the agency recaptures a tax credit under this section, the agency
shall notify the superintendent of insurance of the recapture. The
superintendent shall make an assessment under Chapter 5725. or 5729.
of the Revised Code for the amount of the credit claimed by each
certificate owner associated with the fund before the recapture was
finalized. The time limitations on assessments under those chapters
do not apply to an assessment under this division, but the
superintendent shall make the assessment within one year after the
date the agency notifies the superintendent of the recapture.
Following the recapture of a tax credit under this section, no tax
credit certificate associated with the fund may be utilized.
Notwithstanding division (B) of section 122.152 of the Revised Code,
if a tax credit is recaptured under this section the agency shall not
issue future tax credit certificates to taxpayers that made
credit-eligible capital contributions to the fund.
(E)(1)
On or after the sixth anniversary of the closing date, a fund that
has not committed any of the acts described in division (B) of this
section may apply to the agency to decertify as a rural business
growth fund. The agency shall respond to the application within sixty
days after receiving the application. In evaluating the application,
the fact that no tax credit has been recaptured with respect to the
fund shall be sufficient evidence to prove that the fund is eligible
for decertification. The agency shall not unreasonably deny an
application submitted under this division.
(2)
The agency shall send notice of its determination with respect to an
application submitted under division (E)(1) of this section to the
fund. If the application is denied, the notice shall include the
reason or reasons for the determination.
(3)
The agency shall not recapture a tax credit due to any actions of a
fund that occur after the date the fund's application for
decertification is approved. Division (E)(3) of this section does not
prohibit the agency from recapturing a tax credit due to the actions
of a fund that occur before the date the fund's application for
decertification is approved, even if those actions are discovered
after that date.
Sec.
122.154.
(A)
Each rural business growth fund shall submit a report to the
department of
housing
and
development
on or before the first day of each March following the end of the
calendar year that includes the closing date until the calendar year
after the fund has decertified. The report shall provide an
itemization of the fund's growth investments and shall include the
following documents and information:
(1)
A bank statement evidencing each growth investment;
(2)
The name, location, and industry class of each business that received
a growth investment from the fund and evidence that the business
qualified as a rural business concern at the time the investment was
made. If the fund obtained a written opinion from the agency on the
business's status as a rural business concern under section 122.156
of the Revised Code, or if the fund makes a written request for such
an opinion and the agency failed to respond within thirty days as
required by that section, a copy of the agency's favorable opinion or
a dated copy of the fund's unanswered request, as applicable, shall
be sufficient evidence that the business qualified as a rural
business concern at the time the investment was made.
(3)
The number of employment positions that existed at each business
described in division (A)(2) of this section on the date the business
received the growth investment;
(4)
The number of new full-time equivalent employees resulting from each
of the fund's growth investments made or maintained in the preceding
calendar year;
(5)
Any other information required by the agency.
(B)
Each fund shall submit a report to the agency on or before the fifth
business day after the first, second, and for program two funds,
third anniversaries of the closing date that provides documentation
sufficient to prove that the fund has met the investment thresholds
described in division (A) of section 122.153 of the Revised Code and
has not implicated any of the other recapture provisions described in
division (B) of that section.
(C)
Each certified rural business growth fund shall pay the agency an
annual fee of twenty thousand dollars. The initial annual fee
required of a fund shall be due and payable to the agency along with
the submission of documentation required under division (H) of
section 122.151 of the Revised Code. Each subsequent annual fee is
due and payable on the last day of February following the first and
each ensuing anniversary of the closing date. If the fund is required
to submit an annual report under division (A) of this section, the
annual fee shall be submitted along with the report. No fund shall be
required to pay an annual fee after the fund has decertified under
section 122.153 of the Revised Code. Annual fees paid to the agency
under this section shall be credited to the tax incentives operating
fund created under section 122.174 of the Revised Code.
(D)
The director of
housing
and
development,
after consultation with the superintendent of insurance and in
accordance with Chapter 119. of the Revised Code, may adopt rules
necessary to implement sections 122.15 to 122.156 of the Revised
Code.
Sec.
122.155.
(A)(1)
For each calendar year in which a rural business growth fund makes or
maintains a growth investment in a rural business concern in this
state, the fund shall determine the number of new full-time
equivalent employees produced at the business concern as a result of
the investment. New full-time equivalent employees shall be computed
by subtracting the number of full-time equivalent employees at the
rural business concern on the date of the fund's initial growth
investment in the rural business concern from the number of full-time
equivalent employees at the rural business concern on the last day of
the calendar year. If the computation results in a number less than
zero, the number of new full-time equivalent employees, produced by
the fund's growth investment for that calendar year period shall be
zero. Only employees with an hourly wage rate of at least one hundred
fifty per cent of the federal minimum wage may be considered in
computing the number of new full-time equivalent employees for the
purposes of this section.
(2)
A fund may determine and include, for the purposes of this section
and section 122.154 of the Revised Code, the number of new full-time
equivalent employees produced at a rural business concern after the
year in which the fund's growth investment is repaid or redeemed. The
new full-time equivalent employees shall be computed in the same
manner as in division (A)(1) of this section based on reporting
information provided by the rural business concern to the fund.
(B)
After a fund's application for decertification is approved under
section 122.153 of the Revised Code, the fund shall determine the
state reimbursement amount. The state reimbursement amount shall
equal the amount by which the fund's credit-eligible capital
contributions exceed the product obtained by multiplying thirty
thousand dollars by the aggregate number of new full-time equivalent
employees for the fund. If that product is greater than the fund's
credit-eligible capital contributions, the state reimbursement amount
shall equal zero. In the absence of additional information provided
by the fund or discovered by the agency, the number of new full-time
equivalent employees for the purposes of this division equals the sum
of all new full-time equivalent employees reported by the fund on the
annual reports required under section 122.154 of the Revised Code.
(C)
After the state reimbursement amount is computed under division (B)
of this section, the fund shall not be permitted to make further
distributions to equity holders of the fund, including investors that
are equity holders of the funds without first remitting the state
reimbursement amount to the agency. All amounts received by the
agency under this division shall be credited to the general revenue
fund.
(D)
The director of
housing
and
development
services
,
upon the request of a fund, may waive all or a portion of the
remission required under division (C) of this section if the director
determines, based on an affidavit of the chief executive officer or
president of a rural business concern, that the growth investments of
the fund resulted in the retention of employment positions that would
have otherwise been eliminated at rural business concerns in this
state. The amount waived shall not exceed the product of thirty
thousand dollars multiplied by the number of retained employment
positions multiplied by the number of years in which the fund made or
maintained a growth investment in the rural business concern that
retained the employment positions.
Sec.
122.156.
A
rural business growth fund, before investing in a business, may
request a written opinion from the department of
housing
and
development
as to whether the business qualifies as a rural business concern
based on the criteria prescribed by section 122.15 of the Revised
Code. The request shall be submitted in a form prescribed by rule of
the agency. The agency shall issue a written opinion to the fund
within thirty business days of receiving such a request.
Notwithstanding division (J) of section 122.15 of the Revised Code,
if the agency determines that the business qualifies as a rural
business concern or if the agency fails to timely issue the written
opinion as required under this section, the business shall be
considered a rural business concern for the purposes of sections
122.15 to 122.156 of the Revised Code.
Sec.
122.16.
(A)
As used in this section:
(1)
"Distressed area" means either a municipal corporation that
has a population of at least fifty thousand according to the most
recent federal decennial census published by the United States census
bureau, or a county, that meets at least two of the following
criteria:
(a)
Its average rate of unemployment, during the most recent five-year
period for which local area unemployment statistics published by the
United States bureau of labor statistics are available, as of the
date the most recent federal decennial census was published, is equal
to or greater than one hundred twenty-five per cent of the average
rate of unemployment for the United States for the same period.
(b)(i)
In the case of a county, its per capita personal income is equal to
or less than eighty per cent of the per capita personal income of the
United States as determined by the most recently available data from
the United States department of commerce, bureau of economic analysis
as of the date the most recent federal decennial census was
published.
(ii)
In the case of a municipal corporation, its per capita income is
equal to or less than eighty per cent of the per capita income of the
United States as determined by the most recently available five-year
estimates published in the American community survey as of the date
the most recent federal decennial census was published.
(c)(i)
In the case of a county, its ratio of personal current transfer
receipts to total personal income is equal to or greater than
twenty-five per cent, as determined by the most recently available
data from the United States department of commerce, bureau of
economic analysis as of the date the most recent federal decennial
census was published.
(ii)
In the case of a municipal corporation, the percentage of its
residents with incomes below the official poverty line is equal to or
greater than twenty per cent as determined by the most recently
available five-year estimates published in the American community
survey as of the date the most recent federal decennial census was
published.
If
a federal agency ceases to publish the applicable data described in
division (A)(1) of this section, the director of
housing
and
development
shall designate, on the department of
housing
and
development's
web site, an alternative source of the applicable data published by a
federal agency or, if no such source is available, another reliable
source.
(2)
"Eligible area" means a distressed area, a labor surplus
area, an inner city area, or a situational distress area.
(3)
"Eligible costs associated with a voluntary action" means
costs incurred during the qualifying period in performing a remedy or
remedial activities, as defined in section 3746.01 of the Revised
Code, and any costs incurred during the qualifying period in
performing both a phase I and phase II property assessment, as
defined in the rules adopted under section 3746.04 of the Revised
Code, provided that the performance of the phase I and phase II
property assessment resulted in the implementation of the remedy or
remedial activities.
(4)
"Inner city area" means, in a municipal corporation that
has a population of at least one hundred thousand and does not meet
the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within its
boundaries that are comprised of the most recent census block tracts
that individually have at least twenty per cent of their population
at or below the state poverty level or other census block tracts
contiguous to such census block tracts.
(5)
"Labor surplus area" means an area designated as a labor
surplus area by the United States department of labor.
(6)
"Official poverty line" has the same meaning as in division
(A) of section 3923.51 of the Revised Code.
(7)
"Partner" includes a member of a limited liability company
formed under Chapter 1705. or 1706. of the Revised Code or under the
laws of any other state if the limited liability company is not
treated as a corporation for purposes of Chapter 5733. of the Revised
Code and is not classified as an association taxable as a corporation
for federal income tax purposes.
(8)
"Partnership" includes a limited liability company formed
under Chapter 1705. or 1706. of the Revised Code or under the laws of
any other state if the limited liability company is not treated as a
corporation for purposes of Chapter 5733. of the Revised Code and is
not classified as an association taxable as a corporation for federal
income tax purposes.
(9)
"Qualifying period" means the period that begins July 1,
1996, and ends June 30, 1999.
(10)
"S corporation" means a corporation that has made an
election under subchapter S of chapter one of subtitle A of the
Internal Revenue Code for its taxable year under the Internal Revenue
Code;
(11)
"Situational distress area" means a county or a municipal
corporation that has experienced or is experiencing a closing or
downsizing of a major employer that will adversely affect the economy
of the county or municipal corporation. In order for a county or
municipal corporation to be designated as a situational distress
area, the governing body of the county or municipal corporation shall
submit a petition to the director of
housing
and
development
in the form prescribed by the director. A county or municipal
corporation may be designated as a situational distress area for a
period not exceeding thirty-six months.
The
petition shall include written documentation that demonstrates all of
the following:
(a)
The number of jobs lost by the closing or downsizing;
(b)
The impact that the job loss has on the unemployment rate of the
county or municipal corporation as measured by the director of job
and family services;
(c)
The annual payroll associated with the job loss;
(d)
The amount of state and local taxes associated with the job loss;
(e)
The impact that the closing or downsizing has on the suppliers
located in the county or municipal corporation.
(12)
"Voluntary action" has the same meaning as in section
3746.01 of the Revised Code.
(13)
"Taxpayer" means a corporation subject to the tax imposed
by section 5733.06 of the Revised Code or any person subject to the
tax imposed by section 5747.02 of the Revised Code.
(14)
"Governing body" means the board of county commissioners of
a county, the board of township trustees of a township, or the
legislative authority of a municipal corporation.
(15)
"Eligible site" means property for which a covenant not to
sue has been issued under section 3746.12 of the Revised Code.
(16)
"American community survey" means the supplementary
statistics collected and published annually by the United States
census bureau in accordance with 13 U.S.C. 141 and 193.
(B)(1)
A taxpayer, partnership, or S corporation that has been issued, under
section 3746.12 of the Revised Code, a covenant not to sue for a site
by the director of environmental protection during the qualifying
period may apply to the director of
housing
and
development,
in the manner prescribed by the director, to enter into an agreement
under which the applicant agrees to economically redevelop the site
in a manner that will create employment opportunities and a credit
will be granted to the applicant against the tax imposed by section
5733.06 or 5747.02 of the Revised Code. The application shall state
the eligible costs associated with a voluntary action incurred by the
applicant. The application shall be accompanied by proof, in a form
prescribed by the director of
housing
and
development,
that the covenant not to sue has been issued.
The
applicant shall request the certified professional that submitted the
no further action letter for the eligible site under section 3746.11
of the Revised Code to submit an affidavit to the director of
housing
and
development
verifying the eligible costs associated with the voluntary action at
that site.
The
director shall review the applications in the order they are
received. If the director determines that the applicant meets the
requirements of this section, the director may enter into an
agreement granting a credit against the tax imposed by section
5733.06 or 5747.02 of the Revised Code. In making the determination,
the director may consider the extent to which political subdivisions
and other units of government will cooperate with the applicant to
redevelop the eligible site. The agreement shall state the amount of
the tax credit and the reporting requirements described in division
(F) of this section.
(2)
The maximum annual amount of credits the director of
housing
and
development
may grant under such agreements shall be as follows:
1996
$5,000,000
1997
$10,000,000
1998
$10,000,000
1999
$5,000,000
For
any year in which the director of
housing
and
development
does not grant tax credits under this section equal to the maximum
annual amount, the amount not granted for that year shall be added to
the maximum annual amount that may be granted for the following year.
However, the director shall not grant any tax credits under this
section after June 30, 1999.
(C)(1)
If the covenant not to sue was issued in connection with a site that
is not located in an eligible area, the credit amount is equal to the
lesser of five hundred thousand dollars or ten per cent of the
eligible costs associated with a voluntary action incurred by the
taxpayer, partnership, or S corporation.
(2)
If a covenant not to sue was issued in connection with a site that is
located in an eligible area, the credit amount is equal to the lesser
of seven hundred fifty thousand dollars or fifteen per cent of the
eligible costs associated with a voluntary action incurred by the
taxpayer, partnership, or S corporation.
(3)
A taxpayer, partnership, or S corporation that has been issued
covenants not to sue under section 3746.12 of the Revised Code for
more than one site may apply to the director of
housing
and
development
to enter into more than one agreement granting a credit against the
tax imposed by section 5733.06 or 5747.02 of the Revised Code.
(4)
For each year for which a taxpayer, partnership, or S corporation has
been granted a credit under an agreement entered into under this
section, the director of
housing
and
development
shall issue a certificate to the taxpayer, partnership, or S
corporation indicating the amount of the credit the taxpayer, the
partners of the partnership, or the shareholders of the S corporation
may claim for that year, not including any amount that may be carried
forward from previous years under section 5733.34 of the Revised
Code.
(D)(1)
Each agreement entered into under this section shall incorporate a
commitment by the taxpayer, partnership, or S corporation not to
permit the use of an eligible site to cause the relocation of
employment positions to that site from elsewhere in this state,
except as otherwise provided in division (D)(2) of this section. The
commitment shall be binding on the taxpayer, partnership, or S
corporation for the lesser of five years from the date the agreement
is entered into or the number of years the taxpayer, partnership, or
S corporation is entitled to claim the tax credit under the
agreement.
(2)
An eligible site may be the site of employment positions relocated
from elsewhere in this state if the director of
housing
and
development
determines both of the following:
(a)
That the site from which the employment positions would be relocated
is inadequate to meet market and industry conditions, expansion
plans, consolidation plans, or other business considerations
affecting the relocating employer;
(b)
That the governing body of the county, township, or municipal
corporation from which the employment positions would be relocated
has been notified of the possible relocation.
For
purposes of this section, the movement of an employment position from
one political subdivision to another political subdivision shall be
considered a relocation of an employment position, but the transfer
of an individual employee from one political subdivision to another
political subdivision shall not be considered a relocation of an
employment position as long as the individual's employment position
in the first political subdivision is refilled.
(E)
A taxpayer, partnership, or S corporation that has entered into an
agreement granting a credit against the tax imposed by section
5733.06 or 5747.02 of the Revised Code that subsequently recovers in
a lawsuit or settlement of a lawsuit at least seventy-five per cent
of the eligible costs associated with a voluntary action shall not
claim any credit amount remaining, including any amounts carried
forward from prior years, beginning with the taxable year in which
the judgment in the lawsuit is entered or the settlement is finally
agreed to.
Any
amount of credit that a taxpayer, partnership, or S corporation may
not claim by reason of this division shall not be considered to have
been granted for the purpose of determining the total amount of
credits that may be issued under division (B)(2) of this section.
(F)
Each year for which a taxpayer, partnership, or S corporation claims
a credit under section 5733.34 of the Revised Code, the taxpayer,
partnership, or S corporation shall report the following to the
director of
housing
and
development:
(1)
The status of all cost recovery litigation described in division (E)
of this section to which it was a party during the previous year;
(2)
Confirmation that the covenant not to sue has not been revoked or has
not been voided;
(3)
Confirmation that the taxpayer, partnership, or S corporation has not
permitted the eligible site to be used in such a manner as to cause
the relocation of employment positions from elsewhere in this state
in violation of the commitment required under division (D) of this
section;
(4)
Any other information the director of
housing
and
development
requires to perform the director's duties under this section.
(G)
The director of
housing
and
development
shall annually certify, by the first day of January of each year
during the qualifying period, the eligible areas for the calendar
year that includes that first day of January.
(H)
The director of
housing
and
development,
in accordance with Chapter 119. of the Revised Code, shall adopt
rules necessary to implement this section, including rules
prescribing forms required for administering this section.
Sec.
122.17.
(A)
As used in this section:
(1)
"Payroll" means the total taxable income paid by the
employer during the employer's taxable year, or during the calendar
year that includes the employer's tax period, to each employee or
each home-based employee employed in the project to the extent such
payroll is not used to determine the credit under section 122.171 of
the Revised Code. "Payroll" excludes amounts paid before
the day the taxpayer becomes eligible for the credit and retirement
or other benefits paid or contributed by the employer to or on behalf
of employees.
(2)
"Baseline payroll" means Ohio employee payroll, except that
the applicable measurement period is the twelve months immediately
preceding the date the tax credit authority approves the taxpayer's
application or the date the tax credit authority receives the
recommendation described in division (C)(2)(a) of this section,
whichever occurs first, multiplied by the sum of one plus an annual
pay increase factor to be determined by the tax credit authority.
(3)
"Ohio employee payroll" means the amount of compensation
used to determine the withholding obligations in division (A) of
section 5747.06 of the Revised Code and paid by the employer during
the employer's taxable year, or during the calendar year that
includes the employer's tax period, to the following:
(a)
An employee employed in the project who is a resident of this state
including a qualifying work-from-home employee not designated as a
home-based employee by an applicant under division (C)(1) of this
section;
(b)
An employee employed at the project location who is not a resident
and whose compensation is not exempt from the tax imposed under
section 5747.02 of the Revised Code pursuant to a reciprocity
agreement with another state under division (A)(3) of section 5747.05
of the Revised Code;
(c)
A home-based employee employed in the project.
"Ohio
employee payroll" excludes any such compensation to the extent
it is used to determine the credit under section 122.171 of the
Revised Code, and excludes amounts paid before the day the taxpayer
becomes eligible for the credit under this section.
(4)
"Excess payroll" means Ohio employee payroll minus baseline
payroll.
(5)
"Home-based employee" means an employee whose services are
performed primarily from the employee's residence in this state
exclusively for the benefit of the project and whose rate of pay is
at least one hundred thirty-one per cent of the federal minimum wage
under 29 U.S.C. 206.
(6)
"Full-time equivalent employees" means the quotient
obtained by dividing the total number of hours for which employees
were compensated for employment in the project by two thousand
eighty. "Full-time equivalent employees" excludes hours
that are counted for a credit under section 122.171 of the Revised
Code.
(7)
"Metric evaluation date" means the date by which the
taxpayer must meet all of the commitments included in the agreement.
(8)
"Qualifying work-from-home employee" means an employee who
is a resident of this state and whose services are supervised from
the employer's project location and performed primarily from a
residence of the employee located in this state.
(9)
"Resident" or "resident of this state" means an
individual who is a resident as defined in section 5747.01 of the
Revised Code.
(10)
"Reporting period" means a period corresponding to the
annual report required under division (D)(6) of this section.
(11)
"Megaproject" means a project in this state that meets all
of the following requirements:
(a)
At least one of the following applies:
(i)
The project requires unique sites, extremely robust utility service,
and a technically skilled workforce.
(ii)
The megaproject operator of the project has its corporate
headquarters in the United States, incurs more than fifty per cent of
its research and development expenses in the United States in the
year preceding the date the tax credit authority approves the project
for a credit under this section, and builds and operates
semiconductor wafer manufacturing factories in this state or intends
to do so by the metric evaluation date applicable to the megaproject
operator.
(b)
The megaproject operator of the project agrees, in an agreement with
the tax credit authority under division (D) of this section, that, on
and after the metric evaluation date applicable to the megaproject
operator and until the end of the last year for which the megaproject
qualifies for the credit authorized under this section, the
megaproject operator will compensate the project's employees at an
average hourly wage of at least three hundred per cent of the federal
minimum wage under 29 U.S.C. 206, exclusive of employee benefits, as
determined at the time the tax credit authority approves the project
for a credit under this section.
(c)
The megaproject operator agrees, in an agreement with the tax credit
authority under division (D) of this section, to satisfy either of
the following by the metric evaluation date applicable to the
project:
(i)
The megaproject operator makes at least one billion dollars, as
adjusted under division (V)(1) of this section, in fixed-asset
investments in the project.
(ii)
The megaproject operator creates at least seventy-five million
dollars, as adjusted under division (V)(1) of this section, in Ohio
employee payroll at the project.
(d)
The megaproject operator agrees, in an agreement with the tax credit
authority under division (D) of this section, that if the project
satisfies division (A)(11)(c)(ii) of this section, then, on and after
the metric evaluation date and until the end of the last year for
which the megaproject qualifies for the credit authorized under this
section, the megaproject operator will maintain at least the amount
in Ohio employee payroll at the project required under that division
for each year in that period.
(12)
"Megaproject operator" means a taxpayer that, separately or
collectively with other taxpayers, undertakes and operates a
megaproject. Such a taxpayer becomes a megaproject operator effective
the first day of the calendar year in which the taxpayer and the tax
credit authority enter into an agreement under division (D) of this
section with respect to the megaproject. More than one taxpayer may
be designated by the tax credit authority as a megaproject operator
for the same megaproject.
(13)
"Megaproject supplier" means a supplier in this state that
meets either or both of the following requirements:
(a)
The supplier sells tangible personal property directly to a
megaproject operator of a megaproject that satisfies the criteria
described in division (A)(11)(a)(ii) of this section for use at a
megaproject site, provided that such property was subject to
substantial manufacturing, assembly, or processing in this state at a
facility owned or operated by the supplier;
(b)
The supplier sells tangible personal property directly to a
megaproject operator for use at a megaproject site, provided that the
supplier agrees, in an agreement with the tax credit authority under
division (D) of this section, to meet all of the following
requirements:
(i)
By the metric evaluation date applicable to the supplier, makes at
least one hundred million dollars, as adjusted under division (V)(2)
of this section, in fixed-asset investments in this state;
(ii)
By the metric evaluation date applicable to the supplier, creates at
least ten million dollars, as adjusted under division (V)(2) of this
section, in Ohio employee payroll;
(iii)
On and after the metric evaluation date applicable to the supplier,
until the end of the last year for which the supplier qualifies for
the credit authorized under this section, maintains at least the
amount in Ohio employee payroll required under division
(A)(13)(b)(ii) of this section for each year in that period.
(B)
The tax credit authority may make grants under this section to foster
job creation in this state. Such a grant shall take the form of a
refundable credit allowed against the tax imposed by section 5725.18,
5726.02, 5729.03, 5733.06, 5736.02, or 5747.02 or levied under
Chapter 5751. of the Revised Code. The credit shall be claimed for
the taxable years or tax periods specified in the taxpayer's
agreement with the tax credit authority under division (D) of this
section. With respect to taxes imposed under section 5726.02,
5733.06, or 5747.02 or Chapter 5751. of the Revised Code, the credit
shall be claimed in the order required under section 5726.98,
5733.98, 5747.98, or 5751.98 of the Revised Code. The amount of the
credit available for a taxable year or for a calendar year that
includes a tax period equals the excess payroll for that year
multiplied by the percentage specified in the agreement with the tax
credit authority.
(C)(1)
A taxpayer or potential taxpayer who proposes a project to create new
jobs in this state may apply to the tax credit authority to enter
into an agreement for a tax credit under this section.
An
application shall not propose to include both home-based employees
and employees who are not home-based employees in the computation of
Ohio employee payroll for the purposes of the same tax credit
agreement, except that a qualifying work-from-home employee shall not
be considered to be a home-based employee unless so designated by the
applicant. If a taxpayer or potential taxpayer employs both
home-based employees and employees who are not home-based employees
in a project, the taxpayer shall submit separate applications for
separate tax credit agreements for the project, one of which shall
include home-based employees in the computation of Ohio employee
payroll and one of which shall include all other employees in the
computation of Ohio employee payroll.
The
director of
housing
and
development
shall prescribe the form of the application. After receipt of an
application, the authority may enter into an agreement with the
taxpayer for a credit under this section if it determines all of the
following:
(a)
The taxpayer's project will increase payroll;
(b)
The taxpayer's project is economically sound and will benefit the
people of this state by increasing opportunities for employment and
strengthening the economy of this state;
(c)
Receiving the tax credit is a major factor in the taxpayer's decision
to go forward with the project.
(2)(a)
A taxpayer that chooses to begin the project prior to receiving the
determination of the authority may, upon submitting the taxpayer's
application to the authority, request that the chief investment
officer of the nonprofit corporation formed under section 187.01 of
the Revised Code and the director review the taxpayer's application
and recommend to the authority that the taxpayer's application be
considered. As soon as possible after receiving such a request, the
chief investment officer and the director shall review the taxpayer's
application and, if they determine that the application warrants
consideration by the authority, make that recommendation to the
authority not later than six months after the application is received
by the authority.
(b)
The authority shall consider any taxpayer's application for which it
receives a recommendation under division (C)(2)(a) of this section.
If the authority determines that the taxpayer does not meet all of
the criteria set forth in division (C)(1) of this section, the
authority and the department of
housing
and
development
shall proceed in accordance with rules adopted by the director
pursuant to division (I) of this section.
(D)
An agreement under this section shall include all of the following:
(1)
A detailed description of the project that is the subject of the
agreement;
(2)(a)
The term of the tax credit, which, except as provided in division
(D)(2)(b) or (C) of this section, shall not exceed fifteen years, and
the first taxable year, or first calendar year that includes a tax
period, for which the credit may be claimed;
(b)
If the tax credit is computed on the basis of home-based employees,
the term of the credit shall expire on or before the last day of the
taxable or calendar year ending before the beginning of the seventh
year after September 6, 2012, the effective date of H.B. 327 of the
129th general assembly.
(c)
If the taxpayer is a megaproject operator or a megaproject supplier
that meets the requirements described in division (A)(13)(b) of this
section, the term of the tax credit shall not exceed thirty years.
(3)
A requirement that the taxpayer shall maintain operations at the
project location for at least the greater of seven years or the term
of the credit plus three years;
(4)
The percentage, as determined by the tax credit authority, of excess
payroll that will be allowed as the amount of the credit for each
taxable year or for each calendar year that includes a tax period;
(5)
The pay increase factor to be applied to the taxpayer's baseline
payroll;
(6)
A requirement that the taxpayer annually shall report to the director
of
housing
and
development
full-time equivalent employees, payroll, Ohio employee payroll,
investment, the provision of health care benefits and tuition
reimbursement if required in the agreement, and other information the
director needs to perform the director's duties under this section;
(7)
A requirement that the director of
housing
and
development
annually review the information reported under division (D)(6) of
this section and verify compliance with the agreement; if the
taxpayer is in compliance, a requirement that the director issue a
certificate to the taxpayer stating that the information has been
verified and identifying the amount of the credit that may be claimed
for the taxable or calendar year. If the taxpayer is a megaproject
supplier, the director shall issue such a certificate to the
megaproject supplier and to any megaproject operator (a) to which the
megaproject supplier directly sells tangible personal property and
(b) that is authorized to claim the credit pursuant to division
(D)(10) of this section.
(8)
A provision providing that the taxpayer may not relocate a
substantial number of employment positions from elsewhere in this
state to the project location unless the director of
housing
and
development
determines that the legislative authority of the county, township, or
municipal corporation from which the employment positions would be
relocated has been notified by the taxpayer of the relocation.
For
purposes of this section, the movement of an employment position from
one political subdivision to another political subdivision shall be
considered a relocation of an employment position unless the
employment position in the first political subdivision is replaced.
The movement of a qualifying work-from-home employee to a different
residence located in this state or to the project location shall not
be considered a relocation of an employment position.
(9)
If the tax credit is computed on the basis of home-based employees,
that the tax credit may not be claimed by the taxpayer until the
taxable year or tax period in which the taxpayer employs at least two
hundred employees more than the number of employees the taxpayer
employed on June 30, 2011;
(10)
If the taxpayer is a megaproject supplier, the percentage of the
annual tax credit certified under division (D)(7) of this section, up
to one hundred per cent, that may be claimed by each megaproject
operator to which the megaproject supplier directly sells tangible
personal property, rather than by that megaproject supplier, on the
condition that the megaproject operator continues to qualify as a
megaproject operator;
(11)
If the taxpayer is a megaproject operator or megaproject supplier, a
requirement that the taxpayer meet and maintain compliance with all
thresholds and requirements to which the taxpayer agreed, pursuant to
division (A)(11) or (13) of this section, respectively, as a
condition of the operator's project qualifying as a megaproject or
the supplier qualifying as a megaproject supplier until the end of
the last year for which the taxpayer qualifies for the credit
authorized under this section. In each year that a megaproject
operator or megaproject supplier is subject to an agreement with the
tax credit authority under this section and meets the requirements of
this division, the director of
housing
and
development
shall issue a certificate to the megaproject operator or megaproject
supplier stating that the megaproject operator or megaproject
supplier continues to meet those requirements.
(12)
If the taxpayer is a megaproject operator, a requirement that the
megaproject operator submit, in a form acceptable to the director of
housing
and
development,
an economic impact report with respect to each megaproject for which
the megaproject operator is designated, summarizing all of the
following for the reporting year:
(a)
The aggregate amount of purchases made by the megaproject operator
for such megaproject from megaproject suppliers;
(b)
The aggregate amount of purchases made by the megaproject operator
for such megaproject from suppliers other than megaproject suppliers;
(c)
A summary of the construction activity for any facilities at the site
of the megaproject in that year;
(d)
The aggregate amount expended by the megaproject operator on research
and development at the site of the megaproject in that year;
(e)
The number of employees working at the site of the megaproject and
the counties in which those employees reside;
(f)
A summary of the supply chain activity in support of the megaproject,
including a list of the twenty-five suppliers with a physical
presence in Ohio from which the megaproject operator made the most
purchases in that year.
The
economic impact report shall be due on or before the first day of
July of each year, beginning in the year specified in the agreement
with the tax credit authority. The information required in the report
shall be certified as true and correct by an officer of the
megaproject operator. If there is more than one megaproject operator
designated for a single megaproject, all of the megaproject operators
designated for the megaproject may jointly submit a single report.
Any information contained in the report is a public record for
purposes of section 149.43 of the Revised Code and shall be published
on the department of
housing
and
development's
web site.
(E)(1)
If a taxpayer fails to meet or comply with any condition or
requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term of
the tax credit. The reduction of the percentage or term may take
effect in the current taxable or calendar year.
(2)
If the tax credit authority determines that a taxpayer that is a
megaproject operator of a megaproject described in division
(A)(11)(a)(ii) of this section is not fully compliant with the
requirements of the agreement, the authority may impose a recoupment
payment on the taxpayer in accordance with the following:
(a)
If, on the metric evaluation date, the taxpayer fails to
substantially meet the capital investment, full-time equivalent
employee, or payroll requirements included in the agreement, an
amount determined at the discretion of the authority, not to exceed
the sum of the following for all years prior to the metric evaluation
date: (i) the amount of taxes that would have been imposed under
Chapters 5739. and 5741. of the Revised Code in the absence of the
agreement, and (ii) the amount of taxes that would have been imposed
under Chapter 5751. of the Revised Code on receipts realized from
sales to the taxpayer in the absence of the agreement;
(b)
If the taxpayer fails to substantially maintain the capital
investment, full-time equivalent employee, or payroll requirements
included in the agreement in any year after the metric evaluation
date, an amount determined at the discretion of the authority, not to
exceed the sum of the following for the calendar year in which
taxpayer failed to meet the requirements: (i) the amount of taxes
that would have been imposed under Chapters 5739. and 5741. of the
Revised Code in the absence of the agreement, and (ii) the amount of
taxes that would have been imposed under Chapter 5751. of the Revised
Code on receipts realized from sales to the taxpayer in the absence
of the agreement.
(3)
The tax credit authority may, subject to any requirements of the tax
credit agreement, take into consideration the taxpayer's prior
performance and any market conditions impacting the taxpayer when
determining the amount of the recoupment payment described in
division (E)(2) of this section.
(F)
Projects that consist solely of point-of-final-purchase retail
facilities are not eligible for a tax credit under this section. If a
project consists of both point-of-final-purchase retail facilities
and nonretail facilities, only the portion of the project consisting
of the nonretail facilities is eligible for a tax credit and only the
excess payroll from the nonretail facilities shall be considered when
computing the amount of the tax credit. If a warehouse facility is
part of a point-of-final-purchase retail facility and supplies only
that facility, the warehouse facility is not eligible for a tax
credit. Catalog distribution centers are not considered
point-of-final-purchase retail facilities for the purposes of this
division, and are eligible for tax credits under this section.
(G)
Financial statements and other information submitted to the
department of
housing
and
development
or the tax credit authority by an applicant or recipient of a tax
credit under this section, and any information taken for any purpose
from such statements or information, are not public records subject
to section 149.43 of the Revised Code. However, the chairperson of
the authority may make use of the statements and other information
for purposes of issuing public reports or in connection with court
proceedings concerning tax credit agreements under this section. Upon
the request of the tax commissioner or, if the applicant or recipient
is an insurance company, upon the request of the superintendent of
insurance, the chairperson of the authority shall provide to the
commissioner or superintendent any statement or information submitted
by an applicant or recipient of a tax credit in connection with the
credit. The commissioner or superintendent shall preserve the
confidentiality of the statement or information.
(H)
A taxpayer claiming a credit under this section shall submit to the
tax commissioner or, if the taxpayer is an insurance company, to the
superintendent of insurance, a copy of the director of
housing
and
development's
certificate of verification under division (D)(7) of this section
with the taxpayer's tax report or return for the taxable year or for
the calendar year that includes the tax period. Failure to submit a
copy of the certificate with the report or return does not invalidate
a claim for a credit if the taxpayer submits a copy of the
certificate to the commissioner or superintendent within the time
prescribed by section 5703.0510 of the Revised Code or within thirty
days after the commissioner or superintendent requests it.
(I)
The director of
housing
and
development,
after consultation with the tax commissioner and the superintendent
of insurance and in accordance with Chapter 119. of the Revised Code,
shall adopt rules necessary to implement this section, including
rules that establish a procedure to be followed by the tax credit
authority and the department of
housing
and
development
in the event the authority considers a taxpayer's application for
which it receives a recommendation under division (C)(2)(a) of this
section but does not approve it. The rules may provide for recipients
of tax credits under this section to be charged fees to cover
administrative costs of the tax credit program. For the purposes of
these rules, a qualifying work-from-home employee shall be considered
to be an employee employed at the applicant's project location. The
fees collected shall be credited to the tax incentives operating fund
created in section 122.174 of the Revised Code. At the time the
director gives public notice under division (A) of section 119.03 of
the Revised Code of the adoption of the rules, the director shall
submit copies of the proposed rules to the chairpersons of the
standing committees on economic development in the senate and the
house of representatives.
(J)
For the purposes of this section, a taxpayer may include a
partnership, a corporation that has made an election under subchapter
S of chapter one of subtitle A of the Internal Revenue Code, or any
other business entity through which income flows as a distributive
share to its owners. A partnership, S-corporation, or other such
business entity may elect to pass the credit received under this
section through to the persons to whom the income or profit of the
partnership, S-corporation, or other entity is distributed. The
election shall be made on the annual report required under division
(D)(6) of this section. The election applies to and is irrevocable
for the credit for which the report is submitted. If the election is
made, the credit shall be apportioned among those persons in the same
proportions as those in which the income or profit is distributed.
(K)(1)
If the director of
housing
and
development
determines that a taxpayer who has received a credit under this
section is not complying with the requirements of the agreement, the
director shall notify the tax credit authority of the noncompliance.
After receiving such a notice, and after giving the taxpayer an
opportunity to explain the noncompliance, the tax credit authority
may require the taxpayer to refund to this state a portion of the
credit in accordance with the following:
(a)
If the taxpayer fails to comply with the requirement under division
(D)(3) of this section, an amount determined in accordance with the
following:
(i)
If the taxpayer maintained operations at the project location for a
period less than or equal to the term of the credit, an amount not
exceeding one hundred per cent of the sum of any credits allowed and
received under this section;
(ii)
If the taxpayer maintained operations at the project location for a
period longer than the term of the credit, but less than the greater
of seven years or the term of the credit plus three years, an amount
not exceeding seventy-five per cent of the sum of any credits allowed
and received under this section.
(b)
If, on the metric evaluation date, the taxpayer fails to
substantially meet the job creation, payroll, or investment
requirements included in the agreement, an amount determined at the
discretion of the authority;
(c)
If the taxpayer fails to substantially maintain the number of new
full-time equivalent employees or amount of payroll required under
the agreement at any time during the term of the agreement after the
metric evaluation date, an amount determined at the discretion of the
authority.
(2)
If a taxpayer files for bankruptcy and fails as described in division
(K)(1)(a), (b), or (c) of this section, the director may immediately
commence an action to recoup an amount not exceeding one hundred per
cent of the sum of any credits received by the taxpayer under this
section.
(3)
In determining the portion of the tax credit to be refunded to this
state, the tax credit authority shall consider the effect of market
conditions on the taxpayer's project and whether the taxpayer
continues to maintain other operations in this state. After making
the determination, the authority shall certify the amount to be
refunded to the tax commissioner or superintendent of insurance, as
appropriate. If the amount is certified to the commissioner, the
commissioner shall make an assessment for that amount against the
taxpayer under Chapter 5726., 5733., 5736., 5747., or 5751. of the
Revised Code. If the amount is certified to the superintendent, the
superintendent shall make an assessment for that amount against the
taxpayer under Chapter 5725. or 5729. of the Revised Code. The time
limitations on assessments under those chapters do not apply to an
assessment under this division, but the commissioner or
superintendent, as appropriate, shall make the assessment within one
year after the date the authority certifies to the commissioner or
superintendent the amount to be refunded. Within ninety days after
certifying the amount to be refunded, if circumstances have changed,
the authority may adjust the amount to be refunded and certify the
adjusted amount to the commissioner or superintendent. The authority
may only adjust the amount to be refunded one time and only if the
amount initially certified by the authority has not been repaid, in
whole or in part, by the taxpayer or certified to the attorney
general for collection under section 131.02 of the Revised Code.
(L)
On or before the first day of August each year, the director of
housing
and
development
shall submit a report to the governor, the president of the senate,
and the speaker of the house of representatives on the tax credit
program under this section. The report shall include information on
the number of agreements that were entered into under this section
during the preceding calendar year, a description of the project that
is the subject of each such agreement, and an update on the status of
projects under agreements entered into before the preceding calendar
year.
(M)
There is hereby created the tax credit authority, which consists of
the director of
housing
and
development
and four other members appointed as follows: the governor, the
president of the senate, and the speaker of the house of
representatives each shall appoint one member who shall be a
specialist in economic development; the governor also shall appoint a
member who is a specialist in taxation. Terms of office shall be for
four years. Each member shall serve on the authority until the end of
the term for which the member was appointed. Vacancies shall be
filled in the same manner provided for original appointments. Any
member appointed to fill a vacancy occurring prior to the expiration
of the term for which the member's predecessor was appointed shall
hold office for the remainder of that term. Members may be
reappointed to the authority. Members of the authority shall receive
their necessary and actual expenses while engaged in the business of
the authority. The director of
housing
and
development
shall serve as chairperson of the authority, and the members annually
shall elect a vice-chairperson from among themselves. Three members
of the authority constitute a quorum to transact and vote on the
business of the authority. The majority vote of the membership of the
authority is necessary to approve any such business, including the
election of the vice-chairperson.
The
director of
housing
and
development
may appoint a professional employee of the department of
housing
and
development
to serve as the director's substitute at a meeting of the authority.
The director shall make the appointment in writing. In the absence of
the director from a meeting of the authority, the appointed
substitute shall serve as chairperson. In the absence of both the
director and the director's substitute from a meeting, the
vice-chairperson shall serve as chairperson.
(N)
For purposes of the credits granted by this section against the taxes
imposed under sections 5725.18 and 5729.03 of the Revised Code,
"taxable year" means the period covered by the taxpayer's
annual statement to the superintendent of insurance.
(O)
On or before the first day of March of each of the five calendar
years beginning with 2014, each taxpayer subject to an agreement with
the tax credit authority under this section on the basis of
home-based employees shall report the number of home-based employees
and other employees employed by the taxpayer in this state to the
department of
housing
and
development.
(P)
On or before the first day of January of 2019, the director of
housing
and
development
shall submit a report to the governor, the president of the senate,
and the speaker of the house of representatives on the effect of
agreements entered into under this section in which the taxpayer
included home-based employees in the computation of income tax
revenue, as that term was defined in this section prior to the
amendment of this section by H.B. 64 of the 131st general assembly.
The report shall include information on the number of such agreements
that were entered into in the preceding six years, a description of
the projects that were the subjects of such agreements, and an
analysis of nationwide home-based employment trends, including the
number of home-based jobs created from July 1, 2011, through June 30,
2017, and a description of any home-based employment tax incentives
provided by other states during that time.
(Q)
The director of
housing
and
development
may require any agreement entered into under this section for a tax
credit computed on the basis of home-based employees to contain a
provision that the taxpayer makes available health care benefits and
tuition reimbursement to all employees.
(R)
Original agreements approved by the tax credit authority under this
section in 2014 or 2015 before September 29, 2015, may be revised at
the request of the taxpayer to conform with the amendments to this
section and sections 5733.0610, 5736.50, 5747.058, and 5751.50 of the
Revised Code by H.B. 64 of the 131st general assembly, upon mutual
agreement of the taxpayer and the department of
housing
and
development,
and approval by the tax credit authority.
(S)(1)
As used in division (S) of this section:
(a)
"Eligible agreement" means an agreement approved by the tax
credit authority under this section on or before December 31, 2013.
(b)
"Income tax revenue" has the same meaning as under this
section as it existed before September 29, 2015, the effective date
of the amendment of this section by H.B. 64 of the 131st general
assembly.
(2)
In calendar year 2016 and thereafter, the tax credit authority shall
annually determine a withholding adjustment factor to be used in the
computation of income tax revenue for eligible agreements. The
withholding adjustment factor shall be a numerical percentage that
equals the percentage that employer income tax withholding rates have
been increased or decreased as a result of changes in the income tax
rates prescribed by section 5747.02 of the Revised Code by amendment
of that section taking effect on or after June 29, 2013.
(3)
Except as provided in division (S)(4) of this section, for reporting
periods ending in 2015 and thereafter for taxpayers subject to
eligible agreements, the tax credit authority shall adjust the income
tax revenue reported on the taxpayer's annual report by multiplying
the withholding adjustment factor by the taxpayer's income tax
revenue and doing one of the following:
(a)
If the income tax rates prescribed by section 5747.02 of the Revised
Code have decreased by amendment of that section taking effect on or
after June 29, 2013, add the product to the taxpayer's income tax
revenue.
(b)
If the income tax rates prescribed by section 5747.02 of the Revised
Code have increased by amendment of that section taking effect on or
after June 29, 2013, subtract the product from the taxpayer's income
tax revenue.
(4)
Division (S)(3) of this section shall not apply unless all of the
following apply for the reporting period with respect to the eligible
agreement:
(a)
The taxpayer has achieved one hundred per cent of the new employment
commitment identified in the agreement.
(b)
If applicable, the taxpayer has achieved one hundred per cent of the
new payroll commitment identified in the agreement.
(c)
If applicable, the taxpayer has achieved one hundred per cent of the
investment commitment identified in the agreement.
(5)
Failure by a taxpayer to have achieved any of the applicable
commitments described in divisions (S)(4)(a) to (c) of this section
in a reporting period does not disqualify the taxpayer for the
adjustment under division (S) of this section for an ensuing
reporting period.
(T)
For reporting periods ending in calendar year 2020 or thereafter, any
taxpayer may include qualifying work-from-home employees in its
report required under division (D)(6) of this section, and the
compensation of such employees shall qualify as Ohio employee payroll
under division (A)(3)(a) of this section, even if the taxpayer's
application to the tax credit authority to enter into an agreement
for a tax credit under this section was approved before September 29,
2017, the effective date of the amendment of this section by H.B. 49
of the 132nd general assembly.
(U)
The director of
housing
and
development
shall notify the tax commissioner if the director determines that a
megaproject operator or megaproject supplier is not in compliance
with the agreement pursuant to a review conducted under division
(D)(11) of this section.
(V)
Beginning in 2025 and in each fifth calendar year thereafter, the tax
commissioner shall adjust the following amounts in September of that
year:
(1)
The fixed-asset investment threshold described in division
(A)(11)(c)(i) of this section and the Ohio employee payroll threshold
described in division (A)(11)(c)(ii) of this section by completing
the following calculations:
(a)
Determine the percentage increase in the gross domestic product
deflator determined by the bureau of economic analysis of the United
States department of commerce from the first day of January of the
fifth preceding calendar year to the last day of December of the
preceding calendar year;
(b)
Multiply that percentage increase by the fixed-asset investment
threshold and the Ohio employee payroll threshold for the current
year;
(c)
Add the resulting products to the corresponding fixed-asset
investment threshold and Ohio employee payroll threshold for the
current year;
(d)
Round the resulting fixed-asset investment sum to the nearest
multiple of ten million dollars and the Ohio employee payroll sum to
the nearest multiple of one million dollars.
(2)
The fixed-asset investment threshold described in division
(A)(13)(b)(i) of this section and the Ohio employee payroll threshold
described in division (A)(13)(b)(ii) of this section by completing
the calculations described in divisions (V)(1)(a) to (c) of this
section and rounding the resulting fixed-asset investment sum to the
nearest multiple of one million dollars and the Ohio employee payroll
sum to the nearest multiple of one hundred thousand dollars.
The
commissioner shall certify the amount of the adjustments under
divisions (V)(1) and (2) of this section to the director of
housing
and
development
and to the tax credit authority not later than the first day of
December of the year the commissioner computes the adjustment. Each
certified amount applies to the ensuing calendar year and each
calendar year thereafter until the tax commissioner makes a new
adjustment. The tax commissioner shall not calculate a new adjustment
in any year in which the resulting amount from the adjustment would
be less than the corresponding amount for the current year.
Sec.
122.171.
(A)
As used in this section:
(1)
"Capital investment project" means a plan of investment at
a project site for the acquisition, construction, renovation, or
repair of buildings, machinery, or equipment, or for capitalized
costs of basic research and new product development determined in
accordance with generally accepted accounting principles, but does
not include any of the following:
(a)
Payments made for the acquisition of personal property through
operating leases;
(b)
Project costs paid before January 1, 2002;
(c)
Payments made to a related member as defined in section 5733.042 of
the Revised Code or to a consolidated elected taxpayer or a combined
taxpayer as defined in section 5751.01 of the Revised Code.
(2)
"Eligible business" means a taxpayer and its related
members with Ohio operations that had a capital investment project
reviewed and approved by the tax credit authority as provided in
divisions (C), (D), and (E) of this section and that satisfies either
of the following requirements:
(a)
If engaged at the project site primarily in significant corporate
administrative functions, as defined by the director of
housing
and
development
by rule, the taxpayer meets both of the following criteria:
(i)
The taxpayer either is located in a foreign trade zone, employs at
least five hundred full-time equivalent employees, or has an annual
Ohio employee payroll of at least thirty-five million dollars at the
time the tax credit authority grants the tax credit under this
section;
(ii)
The taxpayer makes or causes to be made payments for the capital
investment project of at least twenty million dollars in the
aggregate at the project site during a period of three consecutive
calendar years including the calendar year that includes a day of the
taxpayer's taxable year or tax period with respect to which the
credit is granted.
(b)
If engaged at the project site primarily as a manufacturer, the
taxpayer makes or causes to be made payments for the capital
investment project at the project site during a period of three
consecutive calendar years, including the calendar year that includes
a day of the taxpayer's taxable year or tax period with respect to
which the credit is granted, in an amount that in the aggregate
equals or exceeds the lesser of the following:
(i)
Fifty million dollars;
(ii)
Five per cent of the net book value of all tangible personal property
used at the project site as of the last day of the three-year period
in which the capital investment payments are made.
(3)
"Full-time equivalent employees" means the quotient
obtained by dividing the total number of hours for which employees
were compensated for employment in the project by two thousand
eighty. "Full-time equivalent employees" shall exclude
hours that are counted for a credit under section 122.17 of the
Revised Code.
(4)
"Ohio employee payroll" has the same meaning as in section
122.17 of the Revised Code.
(5)
"Manufacturer" has the same meaning as in section 5739.011
of the Revised Code.
(6)
"Project site" means an integrated complex of facilities in
this state, as specified by the tax credit authority under this
section, within a fifteen-mile radius where a taxpayer is primarily
operating as an eligible business.
(7)
"Related member" has the same meaning as in section
5733.042 of the Revised Code as that section existed on the effective
date of its amendment by Am. Sub. H.B. 215 of the 122nd general
assembly, September 29, 1997.
(8)
"Taxable year" includes, in the case of a domestic or
foreign insurance company, the calendar year ending on the
thirty-first day of December preceding the day the superintendent of
insurance is required to certify to the treasurer of state under
section 5725.20 or 5729.05 of the Revised Code the amount of taxes
due from insurance companies.
(9)
"Foreign trade zone" means a general purpose foreign trade
zone or a special purpose subzone for which, pursuant to 19 U.S.C.
81a, as amended, a permit for foreign trade zone status has been
granted and remains active, including special purpose subzones for
which a permit has been granted and remains active.
(B)
The tax credit authority created under section 122.17 of the Revised
Code may grant a nonrefundable tax credit to an eligible business
under this section for the purpose of fostering job retention in this
state. Upon application by an eligible business and upon
consideration of the determination of the director of budget and
management, tax commissioner, and the superintendent of insurance in
the case of an insurance company, the recommendation and
determination of the director of
housing
and
development
under division (C)(1) of this section, and a review of the criteria
described in division (C)(2) of this section, the tax credit
authority may grant the credit against the tax imposed by section
5725.18, 5726.02, 5729.03, 5733.06, 5736.02, 5747.02, or 5751.02 of
the Revised Code.
The
credit authorized in this section may be granted for a period up to
fifteen taxable years or, in the case of the tax levied by section
5736.02 or 5751.02 of the Revised Code, for a period of up to fifteen
calendar years. The credit amount for a taxable year or a calendar
year that includes the tax period for which a credit may be claimed
equals the Ohio employee payroll for that year multiplied by the
percentage specified in the agreement with the tax credit authority.
The credit shall be claimed in the order required under section
5725.98, 5726.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the
Revised Code. In determining the percentage and term of the credit,
the tax credit authority shall consider both the number of full-time
equivalent employees and the value of the capital investment project.
The credit amount may not be based on the Ohio employee payroll for a
calendar year before the calendar year in which the tax credit
authority specifies the tax credit is to begin, and the credit shall
be claimed only for the taxable years or tax periods specified in the
eligible business' agreement with the tax credit authority. In no
event shall the credit be claimed for a taxable year or tax period
terminating before the date specified in the agreement.
If
a credit allowed under this section for a taxable year or tax period
exceeds the taxpayer's tax liability for that year or period, the
excess may be carried forward for the three succeeding taxable or
calendar years, but the amount of any excess credit allowed in any
taxable year or tax period shall be deducted from the balance carried
forward to the succeeding year or period.
(C)(1)
A taxpayer that proposes a capital investment project to retain jobs
in this state may apply to the tax credit authority to enter into an
agreement for a tax credit under this section. The director of
housing
and
development
shall prescribe the form of the application. After receipt of an
application, the authority shall forward copies of the application to
the director of budget and management, the tax commissioner, and the
superintendent of insurance in the case of an insurance company, each
of whom shall review the application to determine the economic impact
the proposed project would have on the state and the affected
political subdivisions and shall submit a summary of their
determinations to the authority. The authority shall also forward a
copy of the application to the director of
housing
and
development,
who shall review the application to determine the economic impact the
proposed project would have on the state and the affected political
subdivisions and shall submit a summary of the director's
determinations and recommendations to the authority.
(2)
The director of
housing
and
development,
in reviewing applications and making recommendations to the tax
credit authority, and the authority, in selecting taxpayers with
which to enter into an agreement under division (D) of this section,
shall give priority to applications that meet one or more of the
following criteria, with greater priority given to applications that
meet more of the criteria: (a) Within the preceding five years, the
applicant has not received a credit under this section or section
122.17 of the Revised Code for a project at the same project site as
that proposed in the application.
(b)
The applicant is not currently receiving a credit under this section
or section 122.17 of the Revised Code.
(c)
The applicant has operated at the project site for at least the
preceding ten years.
(d)
The project involves a significant upgrade of the project site,
rather than only routine maintenance of existing facilities, such as
an increase in capacity of a facility, new product development, or
technology upgrades or other facility modernization.
(e)
The applicant intends to use machinery, equipment, and materials
supplied by Ohio businesses in the project when possible.
(D)
Upon review and consideration of the determinations, recommendations,
and criteria described in division (C) of this section, the tax
credit authority may enter into an agreement with the taxpayer for a
credit under this section if the authority determines all of the
following:
(1)
The taxpayer's capital investment project will result in the
retention of employment in this state.
(2)
The taxpayer is economically sound and has the ability to complete
the proposed capital investment project.
(3)
The taxpayer intends to and has the ability to maintain operations at
the project site for at least the greater of (a) the term of the
credit plus three years, or (b) seven years.
(4)
Receiving the credit is a major factor in the taxpayer's decision to
begin, continue with, or complete the project.
(E)
An agreement under this section shall include all of the following:
(1)
A detailed description of the project that is the subject of the
agreement, including the amount of the investment, the period over
which the investment has been or is being made, the number of
full-time equivalent employees at the project site, and the
anticipated Ohio employee payroll to be generated.
(2)
The term of the credit, the percentage of the tax credit, the maximum
annual value of tax credits that may be allowed each year, and the
first year for which the credit may be claimed.
(3)
A requirement that the taxpayer maintain operations at the project
site for at least the greater of (a) the term of the credit plus
three years, or (b) seven years.
(4)(a)
If the taxpayer is engaged at the project site primarily in
significant corporate administrative functions, a requirement that
the taxpayer either retain at least five hundred full-time equivalent
employees at the project site and within this state for the entire
term of the credit, maintain an annual Ohio employee payroll of at
least thirty-five million dollars for the entire term of the credit,
or remain located in a foreign trade zone for the entire term of the
credit;
(b)
If the taxpayer is engaged at the project site primarily as a
manufacturer, a requirement that the taxpayer maintain at least the
number of full-time equivalent employees specified in the agreement
pursuant to division (E)(1) of this section at the project site and
within this state for the entire term of the credit.
(5)
A requirement that the taxpayer annually report to the director of
housing
and
development
full-time equivalent employees, Ohio employee payroll, capital
investment, and other information the director needs to perform the
director's duties under this section.
(6)
A requirement that the director of
housing
and
development
annually review the annual reports of the taxpayer to verify the
information reported under division (E)(5) of this section and
compliance with the agreement. Upon verification, the director shall
issue a certificate to the taxpayer stating that the information has
been verified and identifying the amount of the credit for the
taxable year or calendar year that includes the tax period. In
determining the number of full-time equivalent employees, no position
shall be counted that is filled by an employee who is included in the
calculation of a tax credit under section 122.17 of the Revised Code.
(7)
A provision providing that the taxpayer may not relocate a
substantial number of employment positions from elsewhere in this
state to the project site unless the director of
housing
and
development
determines that the taxpayer notified the legislative authority of
the county, township, or municipal corporation from which the
employment positions would be relocated.
For
purposes of this section, the movement of an employment position from
one political subdivision to another political subdivision shall be
considered a relocation of an employment position unless the movement
is confined to the project site. The transfer of an employment
position from one political subdivision to another political
subdivision shall not be considered a relocation of an employment
position if the employment position in the first political
subdivision is replaced by another employment position.
(8)
A waiver by the taxpayer of any limitations periods relating to
assessments or adjustments resulting from the taxpayer's failure to
comply with the agreement.
(F)
If a taxpayer fails to meet or comply with any condition or
requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term of
the credit. The reduction of the percentage or term may take effect
in the current taxable or calendar year.
(G)
Financial statements and other information submitted to the
department of
housing
and
development
or the tax credit authority by an applicant for or recipient of a tax
credit under this section, and any information taken for any purpose
from such statements or information, are not public records subject
to section 149.43 of the Revised Code. However, the chairperson of
the authority may make use of the statements and other information
for purposes of issuing public reports or in connection with court
proceedings concerning tax credit agreements under this section. Upon
the request of the tax commissioner, or the superintendent of
insurance in the case of an insurance company, the chairperson of the
authority shall provide to the commissioner or superintendent any
statement or other information submitted by an applicant for or
recipient of a tax credit in connection with the credit. The
commissioner or superintendent shall preserve the confidentiality of
the statement or other information.
(H)
A taxpayer claiming a tax credit under this section shall submit to
the tax commissioner or, in the case of an insurance company, to the
superintendent of insurance, a copy of the director of
housing
and
development's
certificate of verification under division (E)(6) of this section
with the taxpayer's tax report or return for the taxable year or for
the calendar year that includes the tax period. Failure to submit a
copy of the certificate with the report or return does not invalidate
a claim for a credit if the taxpayer submits a copy of the
certificate to the commissioner or superintendent within the time
prescribed by section 5703.0510 of the Revised Code or within thirty
days after the commissioner or superintendent requests it.
(I)
For the purposes of this section, a taxpayer may include a
partnership, a corporation that has made an election under subchapter
S of chapter one of subtitle A of the Internal Revenue Code, or any
other business entity through which income flows as a distributive
share to its owners. A partnership, S-corporation, or other such
business entity may elect to pass the credit received under this
section through to the persons to whom the income or profit of the
partnership, S-corporation, or other entity is distributed. The
election shall be made on the annual report required under division
(E)(5) of this section. The election applies to and is irrevocable
for the credit for which the report is submitted. If the election is
made, the credit shall be apportioned among those persons in the same
proportions as those in which the income or profit is distributed.
(J)(1)
If the director of
housing
and
development
determines that a taxpayer that received a certificate under division
(E)(6) of this section is not complying with the requirements of the
agreement, the director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving the
taxpayer an opportunity to explain the noncompliance, the authority
may terminate the agreement and require the taxpayer, or any related
member or members that claimed the tax credit under division (N) of
this section, to refund to the state all or a portion of the credit
claimed in previous years, as follows:
(a)
If the taxpayer fails to comply with the requirement under division
(E)(3) of this section, an amount determined in accordance with the
following:
(i)
If the taxpayer maintained operations at the project site for less
than or equal to the term of the credit, an amount not to exceed one
hundred per cent of the sum of any tax credits allowed and received
under this section.
(ii)
If the taxpayer maintained operations at the project site longer than
the term of the credit, but less than the greater of seven years or
the term of the credit plus three years, the amount required to be
refunded shall not exceed seventy-five per cent of the sum of any tax
credits allowed and received under this section.
(b)
If the taxpayer fails to substantially, satisfy the employment,
payroll, or location requirements required under the agreement, as
prescribed under division (E)(4)(a) or (b), as applicable to the
taxpayer, at any time during the term of the agreement or during the
post-term reporting period, an amount determined at the discretion of
the authority.
(2)
If a taxpayer files for bankruptcy and fails as described in division
(J)(1)(a) or (b) of this section, the director may immediately
commence an action to recoup an amount not exceeding one hundred per
cent of the sum of any credits received by the taxpayer under this
section.
(3)
In determining the portion of the credit to be refunded to this
state, the authority shall consider the effect of market conditions
on the taxpayer's project and whether the taxpayer continues to
maintain other operations in this state. After making the
determination, the authority shall certify the amount to be refunded
to the tax commissioner or the superintendent of insurance. If the
taxpayer, or any related member or members who claimed the tax credit
under division (N) of this section, is not an insurance company, the
commissioner shall make an assessment for that amount against the
taxpayer under Chapter 5726., 5733., 5736., 5747., or 5751. of the
Revised Code. If the taxpayer, or any related member or members that
claimed the tax credit under division (N) of this section, is an
insurance company, the superintendent of insurance shall make an
assessment under section 5725.222 or 5729.102 of the Revised Code.
The time limitations on assessments under those chapters and sections
do not apply to an assessment under this division, but the
commissioner or superintendent shall make the assessment within one
year after the date the authority certifies to the commissioner or
superintendent the amount to be refunded. Within ninety days after
certifying the amount to be refunded, if circumstances have changed,
the authority may adjust the amount to be refunded and certify the
adjusted amount to the commissioner or superintendent. The authority
may only adjust the amount to be refunded one time and only if the
amount initially certified by the authority has not been repaid, in
whole or in part, by the taxpayer or certified to the attorney
general for collection under section 131.02 of the Revised Code.
(K)
The director of
housing
and
development,
after consultation with the tax commissioner and the superintendent
of insurance and in accordance with Chapter 119. of the Revised Code,
shall adopt rules necessary to implement this section. The rules may
provide for recipients of tax credits under this section to be
charged fees to cover administrative costs of the tax credit program.
The fees collected shall be credited to the tax incentives operating
fund created in section 122.174 of the Revised Code. At the time the
director gives public notice under division (A) of section 119.03 of
the Revised Code of the adoption of the rules, the director shall
submit copies of the proposed rules to the chairpersons of the
standing committees on economic development in the senate and the
house of representatives.
(L)
On or before the first day of August of each year, the director of
housing
and
development
shall submit a report to the governor, the president of the senate,
and the speaker of the house of representatives on the tax credit
program under this section. The report shall include information on
the number of agreements that were entered into under this section
during the preceding calendar year, a description of the project that
is the subject of each such agreement, and an update on the status of
projects under agreements entered into before the preceding calendar
year.
(M)
The aggregate amount of nonrefundable tax credits issued under this
section during any calendar year for capital investment projects
reviewed and approved by the tax credit authority may not exceed the
following amounts:
(1)
For 2010, thirteen million dollars;
(2)
For 2011 through 2023, the amount of the limit for the preceding
calendar year plus thirteen million dollars;
(3)
For 2024 and each year thereafter, one hundred ninety-five million
dollars.
The
limitations in division (M) of this section do not apply to credits
for capital investment projects approved by the tax credit authority
before July 1, 2009.
(N)
This division applies only to an eligible business that is part of an
affiliated group that includes a diversified savings and loan holding
company or a grandfathered unitary savings and loan holding company,
as those terms are defined in section 5726.01 of the Revised Code.
Notwithstanding any contrary provision of the agreement between such
an eligible business and the tax credit authority, any credit granted
under this section against the tax imposed by section 5725.18,
5729.03, 5733.06, 5747.02, or 5751.02 of the Revised Code to the
eligible business, at the election of the eligible business and
without any action by the tax credit authority, may be shared with
any member or members of the affiliated group that includes the
eligible business, which member or members may claim the credit
against the taxes imposed by section 5725.18, 5726.02, 5729.03,
5733.06, 5747.02, or 5751.02 of the Revised Code. Credits shall be
claimed by the eligible business in sequential order, as applicable,
first claiming the credits to the fullest extent possible against the
tax that the certificate holder is subject to, then against the tax
imposed by, sequentially, section 5729.03, 5725.18, 5747.02, 5751.02,
and lastly 5726.02 of the Revised Code. The credits may be allocated
among the members of the affiliated group in such manner as the
eligible business elects, but subject to the sequential order
required under this division. This division applies to credits
granted before, on, or after March 27, 2013, the effective date of
H.B. 510 of the 129th general assembly. Credits granted before that
effective date that are shared and allocated under this division may
be claimed in those calendar years in which the remaining taxable
years specified in the agreement end.
As
used in this division, "affiliated group" means a group of
two or more persons with fifty per cent or greater of the value of
each person's ownership interests owned or controlled directly,
indirectly, or constructively through related interests by common
owners during all or any portion of the taxable year, and the common
owners. "Affiliated group" includes, but is not limited to,
any person eligible to be included in a consolidated elected taxpayer
group under section 5751.011 of the Revised Code or a combined
taxpayer group under section 5751.012 of the Revised Code.
(O)(1)
As used in division (O) of this section:
(a)
"Eligible agreement" means an agreement approved by the tax
credit authority under this section on or before December 31, 2013.
(b)
"Reporting period" means a period corresponding to the
annual report required under division (E)(5) of this section.
(c)
"Income tax revenue" has the same meaning as under division
(S) of section 122.17 of the Revised Code.
(2)
In calendar year 2016 and thereafter, the tax credit authority shall
annually determine a withholding adjustment factor to be used in the
computation of income tax revenue for eligible agreements. The
withholding adjustment factor shall be a numerical percentage that
equals the percentage that employer income tax withholding rates have
been increased or decreased as a result of changes in the income tax
rates prescribed by section 5747.02 of the Revised Code by amendment
of that section taking effect on or after June 29, 2013.
(3)
Except as provided in division (O)(4) of this section, for reporting
periods ending in 2015 and thereafter for taxpayers subject to
eligible agreements, the tax credit authority shall adjust the income
tax revenue reported on the taxpayer's annual report by multiplying
the withholding adjustment factor by the taxpayer's income tax
revenue and doing one of the following:
(a)
If the income tax rates prescribed by section 5747.02 of the Revised
Code have decreased by amendment of this section taking effect on or
after June 29, 2013, add the product to the taxpayer's income tax
revenue.
(b)
If the income tax rates prescribed by section 5747.02 of the Revised
Code have increased by amendment of this section taking effect on or
after June 29, 2013, subtract the product from the taxpayer's income
tax revenue.
(4)
Division (O)(3) of this section shall not apply unless all of the
following apply with respect to the eligible agreement:
(a)
If applicable, the taxpayer has achieved one hundred per cent of the
job retention commitment identified in the agreement.
(b)
If applicable, the taxpayer has achieved one hundred per cent of the
payroll retention commitment identified in the agreement.
"
(c)
If applicable, the taxpayer has achieved one hundred per cent of the
investment commitment identified in the agreement.
(5)
Failure by a taxpayer to have achieved any of the applicable
commitments described in divisions (O)(4)(a) to (c) of this section
in a reporting period does not disqualify the taxpayer for the
adjustment under division (O) of this section for an ensuing
reporting period.
Sec.
122.172.
(A)
As used in this section, "tax liability" means the tax owed
under section 5733.06 or 5747.02 of the Revised Code after allowance
of all nonrefundable credits and prior to the allowance of all
refundable credits. The tax owed under section 5733.06 of the Revised
Code shall take into account any adjustments to such tax required by
division (G) of section 5733.01 of the Revised Code that apply prior
to allowance of refundable credits.
(B)(1)
The director of
housing
and
development
shall administer the manufacturing equipment grant program to provide
grants for new manufacturing machinery and equipment qualifying for
the grant under section 122.173 of the Revised Code. Except as
provided in division (C) of this section, the grants apply to the
taxes imposed by sections 5733.06 and 5747.02 of the Revised Code for
taxable years ending on or after July 1, 2005.
(2)
To claim a grant, a taxpayer satisfying the requirements of section
122.173 of the Revised Code shall complete a grant request form, as
prescribed by the director in consultation with the tax commissioner,
and shall file the form with the tax return for the taxable year for
which the grant is claimed. In no event shall the grant reduce a
taxpayer's tax liability below the minimum tax owed for the taxable
year. The grant request form shall provide the information required
to allow the grant for the taxable year and is subject to audit by
the director and the commissioner. Any portion of the grant in excess
of the taxpayer's tax liability shall not be refundable but may be
carried forward as provided in section 122.173 of the Revised Code.
Upon the director's request, the commissioner shall provide completed
grant request forms filed under this section to the director in a
mutually agreed upon format.
(C)
If a taxpayer is required to repay any credit allowed under section
5733.33 of the Revised Code for a taxable year ending prior to July
1, 2005, for a reason not specified in Chapter 5733. or 5747. of the
Revised Code, a grant shall be available for that taxable year under
section 122.173 of the Revised Code to the extent provided in that
section.
(D)
Any tax liability under section 5733.06 or 5747.02 of the Revised
Code that is underpaid as the result of an improper claim for a grant
under this section may be assessed by the tax commissioner in the
manner provided by section 5733.11 or 5747.11 of the Revised Code.
Sec.
122.173.
(A)
As used in this section:
(1)
"Manufacturing machinery and equipment" means engines and
machinery, and tools and implements, of every kind used, or designed
to be used, in refining and manufacturing. "Manufacturing
machinery and equipment" does not include property acquired
after December 31, 1999, that is used:
(a)
For the transmission and distribution of electricity;
(b)
For the generation of electricity, if fifty per cent or more of the
electricity that the property generates is consumed, during the
one-hundred-twenty-month period commencing with the date the property
is placed in service, by persons that are not related members to the
person who generates the electricity.
(2)
"New manufacturing machinery and equipment" means
manufacturing machinery and equipment, the original use in this state
of which commences with the taxpayer or with a partnership of which
the taxpayer is a partner. "New manufacturing machinery and
equipment" does not include property acquired after December 31,
1999, that is used:
(a)
For the transmission and distribution of electricity;
(b)
For the generation of electricity, if fifty per cent or more of the
electricity that the property generates is consumed, during the
one-hundred-twenty-month period commencing with the date the property
is placed in service, by persons that are not related members to the
person who generates the electricity.
(3)(a)
"Purchase" has the same meaning as in section 179(d)(2) of
the Internal Revenue Code.
(b)
For purposes of this section, any property that is not manufactured
or assembled primarily by the taxpayer is considered purchased at the
time the agreement to acquire the property becomes binding. Any
property that is manufactured or assembled primarily by the taxpayer
is considered purchased at the time the taxpayer places the property
in service in the county for which the taxpayer will calculate the
county excess amount.
(c)
Notwithstanding section 179(d) of the Internal Revenue Code, a
taxpayer's direct or indirect acquisition of new manufacturing
machinery and equipment is not purchased on or after July 1, 1995, if
the taxpayer, or a person whose relationship to the taxpayer is
described in subparagraphs (A), (B), or (C) of section 179(d)(2) of
the Internal Revenue Code, had directly or indirectly entered into a
binding agreement to acquire the property at any time prior to July
1, 1995.
(4)
"Qualifying period" means the period that begins July 1,
1995, and ends June 30, 2005.
(5)
"County average new manufacturing machinery and equipment
investment" means either of the following:
(a)
The average annual cost of new manufacturing machinery and equipment
purchased for use in the county during baseline years, in the case of
a taxpayer that was in existence for more than one year during
baseline years.
(b)
Zero, in the case of a taxpayer that was not in existence for more
than one year during baseline years.
(6)
"Partnership" includes a limited liability company formed
under
former
Chapter
1705.
or
of
the Revised Code as that chapter existed prior to February 11, 2022,
Chapter
1706.
of the Revised Code
,
or under the laws of any other state, provided that the company is
not classified for federal income tax purposes as an association
taxable as a corporation.
(7)
"Partner" includes a member of a limited liability company
formed under
former
Chapter
1705.
or
of
the Revised Code as that chapter existed prior to February 11, 2022,
Chapter
1706.
of the Revised Code
,
or under the laws of any other state, provided that the company is
not classified for federal income tax purposes as an association
taxable as a corporation.
(8)
"Distressed area" has the same meaning as in section 122.16
of the Revised Code.
(9)
"Eligible area" means a distressed area, a labor surplus
area, an inner city area, or a situational distress area.
(10)
"Inner city area" means, in a municipal corporation that
has a population of at least one hundred thousand and does not meet
the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within its
boundaries that are comprised of the most recent census block tracts
that individually have at least twenty per cent of their population
at or below the state poverty level or other census block tracts
contiguous to such census block tracts.
(11)
"Labor surplus area" means an area designated as a labor
surplus area by the United States department of labor.
(12)
"Official poverty line" has the same meaning as in division
(A) of section 3923.51 of the Revised Code.
(13)
"Situational distress area" means a county or a municipal
corporation that has experienced or is experiencing a closing or
downsizing of a major employer that will adversely affect the
county's or municipal corporation's economy. In order to be
designated as a situational distress area, for a period not to exceed
thirty-six months, the county or municipal corporation may petition
the director of
housing
and
development.
The petition shall include written documentation that demonstrates
all of the following adverse effects on the local economy:
(a)
The number of jobs lost by the closing or downsizing;
(b)
The impact that the job loss has on the county's or municipal
corporation's unemployment rate as measured by the state director of
job and family services;
(c)
The annual payroll associated with the job loss;
(d)
The amount of state and local taxes associated with the job loss;
(e)
The impact that the closing or downsizing has on suppliers located in
the county or municipal corporation.
(14)
"Cost" has the same meaning and limitation as in section
179(d)(3) of the Internal Revenue Code.
(15)
"Baseline years" means:
(a)
Calendar years 1992, 1993, and 1994, with regard to a grant claimed
for the purchase during calendar year 1995, 1996, 1997, or 1998 of
new manufacturing machinery and equipment;
(b)
Calendar years 1993, 1994, and 1995, with regard to a grant claimed
for the purchase during calendar year 1999 of new manufacturing
machinery and equipment;
(c)
Calendar years 1994, 1995, and 1996, with regard to a grant claimed
for the purchase during calendar year 2000 of new manufacturing
machinery and equipment;
(d)
Calendar years 1995, 1996, and 1997, with regard to a grant claimed
for the purchase during calendar year 2001 of new manufacturing
machinery and equipment;
(e)
Calendar years 1996, 1997, and 1998, with regard to a grant claimed
for the purchase during calendar year 2002 of new manufacturing
machinery and equipment;
(f)
Calendar years 1997, 1998, and 1999, with regard to a grant claimed
for the purchase during calendar year 2003 of new manufacturing
machinery and equipment;
(g)
Calendar years 1998, 1999, and 2000, with regard to a grant claimed
for the purchase during calendar year 2004 of new manufacturing
machinery and equipment;
(h)
Calendar years 1999, 2000, and 2001, with regard to a grant claimed
for the purchase on or after January 1, 2005, and on or before June
30, 2005, of new manufacturing machinery and equipment.
(16)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(17)
"Qualifying controlled group" has the same meaning as in
section 5733.04 of the Revised Code.
(18)
"Tax liability" has the same meaning as in section 122.172
of the Revised Code.
(B)(1)
Subject to divisions (I) and (J) of this section, a grant is allowed
against the tax imposed by section 5733.06 or 5747.02 of the Revised
Code for a taxpayer that purchases new manufacturing machinery and
equipment during the qualifying period, provided that the new
manufacturing machinery and equipment are installed in this state not
later than June 30, 2006.
(2)(a)
Except as otherwise provided in division (B)(2)(b) of this section, a
grant may be claimed under this section in excess of one million
dollars only if the cost of all manufacturing machinery and equipment
owned in this state by the taxpayer claiming the grant on the last
day of the calendar year exceeds the cost of all manufacturing
machinery and equipment owned in this state by the taxpayer on the
first day of that calendar year.
As
used in division (B)(2)(a) of this section, "calendar year"
means the calendar year in which the machinery and equipment for
which the grant is claimed was purchased.
(b)
Division (B)(2)(a) of this section does not apply if the taxpayer
claiming the grant applies for and is issued a waiver of the
requirement of that division. A taxpayer may apply to the director of
housing
and
development
for such a waiver in the manner prescribed by the director, and the
director may issue such a waiver if the director determines that
granting the grant is necessary to increase or retain employees in
this state, and that the grant has not caused relocation of
manufacturing machinery and equipment among counties within this
state for the primary purpose of qualifying for the grant.
(C)(1)
Except as otherwise provided in division (C)(2) and division (I) of
this section, the grant amount is equal to seven and one-half per
cent of the excess of the cost of the new manufacturing machinery and
equipment purchased during the calendar year for use in a county over
the county average new manufacturing machinery and equipment
investment for that county.
(2)
Subject to division (I) of this section, as used in division (C)(2)
of this section, "county excess" means the taxpayer's
excess cost for a county as computed under division (C)(1) of this
section.
Subject
to division (I) of this section, a taxpayer with a county excess,
whose purchases included purchases for use in any eligible area in
the county, the grant amount is equal to thirteen and one-half per
cent of the cost of the new manufacturing machinery and equipment
purchased during the calendar year for use in the eligible areas in
the county, provided that the cost subject to the thirteen and
one-half per cent rate shall not exceed the county excess. If the
county excess is greater than the cost of the new manufacturing
machinery and equipment purchased during the calendar year for use in
eligible areas in the county, the grant amount also shall include an
amount equal to seven and one-half per cent of the amount of the
difference.
(3)
If a taxpayer is allowed a grant for purchases of new manufacturing
machinery and equipment in more than one county or eligible area, it
shall aggregate the amount of those grants each year.
(4)
Except as provided in division (J) of this section, the taxpayer
shall claim one-seventh of the grant amount for the taxable year
ending in the calendar year in which the new manufacturing machinery
and equipment is purchased for use in the county by the taxpayer or
partnership. One-seventh of the taxpayer grant amount is allowed for
each of the six ensuing taxable years. Except for carried-forward
amounts, the taxpayer is not allowed any grant amount remaining if
the new manufacturing machinery and equipment is sold by the taxpayer
or partnership or is transferred by the taxpayer or partnership out
of the county before the end of the seven-year period unless, at the
time of the sale or transfer, the new manufacturing machinery and
equipment has been fully depreciated for federal income tax purposes.
(5)(a)
A taxpayer that acquires manufacturing machinery and equipment as a
result of a merger with the taxpayer with whom commenced the original
use in this state of the manufacturing machinery and equipment, or
with a taxpayer that was a partner in a partnership with whom
commenced the original use in this state of the manufacturing
machinery and equipment, is entitled to any remaining or
carried-forward grant amounts to which the taxpayer was entitled.
(b)
A taxpayer that enters into an agreement under division (C)(3) of
section 5709.62 of the Revised Code and that acquires manufacturing
machinery or equipment as a result of purchasing a large
manufacturing facility, as defined in section 5709.61 of the Revised
Code, from another taxpayer with whom commenced the original use in
this state of the manufacturing machinery or equipment, and that
operates the large manufacturing facility so purchased, is entitled
to any remaining or carried-forward grant amounts to which the other
taxpayer who sold the facility would have been entitled under this
section had the other taxpayer not sold the manufacturing facility or
equipment.
(c)
New manufacturing machinery and equipment is not considered sold if a
pass-through entity transfers to another pass-through entity
substantially all of its assets as part of a plan of reorganization
under which substantially all gain and loss is not recognized by the
pass-through entity that is transferring the new manufacturing
machinery and equipment to the transferee and under which the
transferee's basis in the new manufacturing machinery and equipment
is determined, in whole or in part, by reference to the basis of the
pass-through entity that transferred the new manufacturing machinery
and equipment to the transferee.
(d)
Division (C)(5) of this section applies only if the acquiring
taxpayer or transferee does not sell the new manufacturing machinery
and equipment or transfer the new manufacturing machinery and
equipment out of the county before the end of the seven-year period
to which division (C)(4) of this section refers.
(e)
Division (C)(5)(b) of this section applies only to the extent that
the taxpayer that sold the manufacturing machinery or equipment, upon
request, timely provides to the tax commissioner any information that
the tax commissioner considers to be necessary to ascertain any
remaining or carried-forward amounts to which the taxpayer that sold
the facility would have been entitled under this section had the
taxpayer not sold the manufacturing machinery or equipment. Nothing
in division (C)(5)(b) or (e) of this section shall be construed to
allow a taxpayer to claim any grant amount with respect to the
acquired manufacturing machinery or equipment that is greater than
the amount that would have been available to the other taxpayer that
sold the manufacturing machinery or equipment had the other taxpayer
not sold the manufacturing machinery or equipment.
(D)
The taxpayer shall claim the grant allowed by this section in the
manner provided by section 122.172 of the Revised Code. Any portion
of the grant in excess of the taxpayer's tax liability for the
taxable year shall not be refundable but may be carried forward for
the next three consecutive taxable years.
(E)
A taxpayer purchasing new manufacturing machinery and equipment and
intending to claim the grant shall file, with the director of
housing
and
development,
a notice of intent to claim the grant on a form prescribed by the
director of
housing
and
development.
The director of
housing
and
development
shall inform the tax commissioner of the notice of intent to claim
the grant. No grant may be claimed under this section for any
manufacturing machinery and equipment with respect to which a notice
was not filed by the date of a timely filed return, including
extensions, for the taxable year that includes September 30, 2005,
but a notice filed on or before such date under division (E) of
section 5733.33 of the Revised Code of the intent to claim the credit
under that section also shall be considered a notice of the intent to
claim a grant under this section.
(F)
The director of
housing
and
development
shall annually certify, by the first day of January of each year
during the qualifying period, the eligible areas for the tax grant
for the calendar year that includes that first day of January. The
director shall send a copy of the certification to the tax
commissioner.
(G)
New manufacturing machinery and equipment for which a taxpayer claims
the credit under section 5733.31 or 5733.311 of the Revised Code
shall not be considered new manufacturing machinery and equipment for
purposes of the grant under this section.
(H)(1)
Notwithstanding sections 5733.11 and 5747.13 of the Revised Code, but
subject to division (H)(2) of this section, the tax commissioner may
issue an assessment against a person with respect to a grant claimed
under this section for new manufacturing machinery and equipment
described in division (A)(1)(b) or (2)(b) of this section, if the
machinery or equipment subsequently does not qualify for the grant.
(2)
Division (H)(1) of this section shall not apply after the
twenty-fourth month following the last day of the period described in
divisions (A)(1)(b) and (2)(b) of this section.
(I)
Notwithstanding any other provision of this section to the contrary,
in the case of a qualifying controlled group, the grant available
under this section to a taxpayer or taxpayers in the qualifying
controlled group shall be computed as if all corporations in the
group were a single corporation. The grant shall be allocated to such
a taxpayer or taxpayers in the group in any amount elected for the
taxable year by the group. The election shall be revocable and
amendable during the period described in division (B) of section
5733.12 of the Revised Code.
This
division applies to all purchases of new manufacturing machinery and
equipment made on or after January 1, 2001, and to all baseline years
used to compute any grant attributable to such purchases; provided,
that this division may be applied solely at the election of the
qualifying controlled group with respect to all purchases of new
manufacturing machinery and equipment made before that date, and to
all baseline years used to compute any grant attributable to such
purchases. The qualifying controlled group at any time may elect to
apply this division to purchases made prior to January 1, 2001,
subject to the following:
(1)
The election is irrevocable;
(2)
The election need not accompany a timely filed report, but the
election may accompany a subsequently filed but timely application
for refund, a subsequently filed but timely amended report, or a
subsequently filed but timely petition for reassessment.
(J)
Except as provided in division (B) of section 122.172 of the Revised
Code, no grant under this section may be claimed for any taxable year
for which a credit is allowed under section 5733.33 of the Revised
Code. If the tax imposed by section 5733.06 of the Revised Code for
which a grant is allowed under this section has been prorated under
division (G)(2) of section 5733.01 of the Revised Code, the grant
shall be prorated by the same percentage as the tax.
Sec.
122.174.
There
is hereby created in the state treasury the tax incentives operating
fund. The fund shall consist of any amounts appropriated to it and
money credited to the fund pursuant to section 122.151, 122.154,
122.17, 122.171, 122.175, 122.85, 122.86, 3735.672, 5709.68, or
5725.33 of the Revised Code. The director of
housing
and
development
services shall use money in the fund to pay expenses related to the
administration of (A) the business services division of the
department
of housing and
development
services
agency
and
(B) the programs described in those sections.
Sec.
122.175.
(A)
As used in this section:
(1)
"Capital investment project" means a plan of investment at
a project site for the acquisition, construction, renovation,
expansion, replacement, or repair of a computer data center or of
computer data center equipment, but does not include any of the
following:
(a)
Project costs paid before a date determined by the tax credit
authority for each capital investment project;
(b)
Payments made to a related member as defined in section 5733.042 of
the Revised Code or to a consolidated elected taxpayer or a combined
taxpayer as defined in section 5751.01 of the Revised Code.
(2)
"Computer data center" means a facility used or to be used
primarily to house computer data center equipment used or to be used
in conducting one or more computer data center businesses, as
determined by the tax credit authority.
(3)
"Computer data center business" means, as may be further
determined by the tax credit authority, a business that provides
electronic information services as defined in division (Y)(1)(c) of
section 5739.01 of the Revised Code, or that leases a facility to one
or more such businesses. "Computer data center business"
does not include providing electronic publishing as defined in that
section.
(4)
"Computer data center equipment" means tangible personal
property used or to be used for any of the following:
(a)
To conduct a computer data center business, including equipment
cooling systems to manage the performance of computer data center
equipment;
(b)
To generate, transform, transmit, distribute, or manage electricity
necessary to operate the tangible personal property used or to be
used in conducting a computer data center business;
(c)
As building and construction materials sold to construction
contractors for incorporation into a computer data center.
(5)
"Eligible computer data center" means a computer data
center that satisfies all of the following requirements:
(a)
One or more taxpayers operating a computer data center business at
the project site will, in the aggregate, make payments for a capital
investment project of at least one hundred million dollars at the
project site during one of the following cumulative periods:
(i)
For projects beginning in 2013, six consecutive calendar years;
(ii)
For projects beginning in 2014, four consecutive calendar years;
(iii)
For projects beginning in or after 2015, three consecutive calendar
years.
(b)
One or more taxpayers operating a computer data center business at
the project site will, in the aggregate, pay annual compensation that
is subject to the withholding obligation imposed under section
5747.06 of the Revised Code of at least one million five hundred
thousand dollars to employees employed at the project site for each
year of the agreement beginning on or after the first day of the
twenty-fifth month after the agreement was entered into under this
section.
(6)
"Person" has the same meaning as in section 5701.01 of the
Revised Code.
(7)
"Project site," "related member," and "tax
credit authority" have the same meanings as in sections 122.17
and 122.171 of the Revised Code.
(8)
"Taxpayer" means any person subject to the taxes imposed
under Chapters 5739. and 5741. of the Revised Code.
(B)
The tax credit authority may completely or partially exempt from the
taxes levied under Chapters 5739. and 5741. of the Revised Code the
sale, storage, use, or other consumption of computer data center
equipment used or to be used at an eligible computer data center. Any
such exemption shall extend to charges for the delivery,
installation, or repair of the computer data center equipment subject
to the exemption under this section.
(C)
A taxpayer that proposes a capital improvement project for an
eligible computer data center in this state may apply to the tax
credit authority to enter into an agreement under this section
authorizing a complete or partial exemption from the taxes imposed
under Chapters 5739. and 5741. of the Revised Code on computer data
center equipment purchased by the applicant or any other taxpayer
that operates a computer data center business at the project site and
used or to be used at the eligible computer data center. The director
of
housing
and
development
services
shall
prescribe the form of the application. After receipt of an
application, the authority shall forward copies of the application to
the director of budget and management and the tax commissioner, each
of whom shall review the application to determine the economic impact
that the proposed eligible computer data center would have on the
state and any affected political subdivisions and submit to the
authority a summary of their determinations. The authority shall also
forward a copy of the application to the director of
housing
and
development
services
who
shall review the application to determine the economic impact that
the proposed eligible computer data center would have on the state
and the affected political subdivisions and shall submit a summary of
their determinations and recommendations to the authority.
(D)
Upon review and consideration of such determinations and
recommendations, the tax credit authority may enter into an agreement
with the applicant and any other taxpayer that operates a computer
data center business at the project site for a complete or partial
exemption from the taxes imposed under Chapters 5739. and 5741. of
the Revised Code on computer data center equipment used or to be used
at an eligible computer data center if the authority determines all
of the following:
(1)
The capital investment project for the eligible computer data center
will increase payroll and the amount of income taxes to be withheld
from employee compensation pursuant to section 5747.06 of the Revised
Code.
(2)
The applicant is economically sound and has the ability to complete
or effect the completion of the proposed capital investment project.
(3)
The applicant intends to and has the ability to maintain operations
at the project site for the term of the agreement.
(4)
Receiving the exemption is a major factor in the applicant's decision
to begin, continue with, or complete the capital investment project.
(E)
An agreement entered into under this section shall include all of the
following:
(1)
A detailed description of the capital investment project that is the
subject of the agreement, including the amount of the investment, the
period over which the investment has been or is being made, the
annual compensation to be paid by each taxpayer subject to the
agreement to its employees at the project site, and the anticipated
amount of income taxes to be withheld from employee compensation
pursuant to section 5747.06 of the Revised Code.
(2)
The percentage of the exemption from the taxes imposed under Chapters
5739. and 5741. of the Revised Code for the computer data center
equipment used or to be used at the eligible computer data center,
the length of time the computer data center equipment will be
exempted, and the first date on which the exemption applies.
(3)
A requirement that the computer data center remain an eligible
computer data center during the term of the agreement and that the
applicant maintain operations at the eligible computer data center
during that term. An applicant does not violate the requirement
described in division (E)(3) of this section if the applicant ceases
operations at the eligible computer data center during the term of
the agreement but resumes those operations within eighteen months
after the date of cessation. The agreement shall provide that, in
such a case, the applicant and any other taxpayer that operates a
computer data center business at the project site shall not claim the
tax exemption authorized in the agreement for any purchase of
computer data center equipment made during the period in which the
applicant did not maintain operations at the eligible computer data
center.
(4)
A requirement that, for each year of the term of the agreement
beginning on or after the first day of the twenty-fifth month after
the date the agreement was entered into, one or more taxpayers
operating a computer data center business at the project site will,
in the aggregate, pay annual compensation that is subject to the
withholding obligation imposed under section 5747.06 of the Revised
Code of at least one million five hundred thousand dollars to
employees at the eligible computer data center.
(5)
A requirement that each taxpayer subject to the agreement annually
report to the director of
housing
and
development
services
employment,
tax withholding, capital investment, and other information required
by the director to perform the director's duties under this section.
(6)
A requirement that the director of
housing
and
development
services
annually
review the annual reports of each taxpayer subject to the agreement
to verify the information reported under division (E)(5) of this
section and compliance with the agreement. Upon verification, the
director shall issue a certificate to each such taxpayer stating that
the information has been verified and that the taxpayer remains
eligible for the exemption specified in the agreement.
(7)
A provision providing that the taxpayers subject to the agreement may
not relocate a substantial number of employment positions from
elsewhere in this state to the project site unless the director of
housing
and
development
services
determines
that the appropriate taxpayer notified the legislative authority of
the county, township, or municipal corporation from which the
employment positions would be relocated. For purposes of this
paragraph, the movement of an employment position from one political
subdivision to another political subdivision shall be considered a
relocation of an employment position unless the movement is confined
to the project site. The transfer of an employment position from one
political subdivision to another political subdivision shall not be
considered a relocation of an employment position if the employment
position in the first political subdivision is replaced by another
employment position.
(8)
A waiver by each taxpayer subject to the agreement of any limitations
periods relating to assessments or adjustments resulting from the
taxpayer's failure to comply with the agreement.
(F)
The term of an agreement under this section shall be determined by
the tax credit authority, and the amount of the exemption shall not
exceed one hundred per cent of such taxes that would otherwise be
owed in respect to the exempted computer data center equipment.
(G)
If any taxpayer subject to an agreement under this section fails to
meet or comply with any condition or requirement set forth in the
agreement, the tax credit authority may amend the agreement to reduce
the percentage of the exemption or term during which the exemption
applies to the computer data center equipment used or to be used by
the noncompliant taxpayer at an eligible computer data center. The
reduction of the percentage or term may take effect in the current
calendar year.
(H)
Financial statements and other information submitted to the
department of
housing
and
development
services
or
the tax credit authority by an applicant for or recipient of an
exemption under this section, and any information taken for any
purpose from such statements or information, are not public records
subject to section 149.43 of the Revised Code. However, the
chairperson of the authority may make use of the statements and other
information for purposes of issuing public reports or in connection
with court proceedings concerning tax exemption agreements under this
section. Upon the request of the tax commissioner, the chairperson of
the authority shall provide to the tax commissioner any statement or
other information submitted by an applicant for or recipient of an
exemption under this section. The tax commissioner shall preserve the
confidentiality of the statement or other information.
(I)
The tax commissioner shall issue a direct payment permit under
section 5739.031 of the Revised Code to each taxpayer subject to an
agreement under this section. Such direct payment permit shall
authorize the taxpayer to pay any sales and use taxes due on
purchases of computer data center equipment used or to be used in an
eligible computer data center and to pay any sales and use taxes due
on purchases of tangible personal property or taxable services other
than computer data center equipment used or to be used in an eligible
computer data center directly to the tax commissioner. Each such
taxpayer shall pay pursuant to such direct payment permit all sales
tax levied on such purchases under sections 5739.02, 5739.021,
5739.023, and 5739.026 of the Revised Code and all use tax levied on
such purchases under sections 5741.02, 5741.021, 5741.022, and
5741.023 of the Revised Code, consistent with the terms of the
agreement entered into under this section.
During
the term of an agreement under this section each taxpayer subject to
the agreement shall submit to the tax commissioner a return that
shows the amount of computer data center equipment purchased for use
at the eligible computer data center, the amount of tangible personal
property and taxable services other than computer data center
equipment purchased for use at the eligible computer data center, the
amount of tax under Chapter 5739. or 5741. of the Revised Code that
would be due in the absence of the agreement under this section, the
exemption percentage for computer data center equipment specified in
the agreement, and the amount of tax due under Chapter 5739. or 5741.
of the Revised Code as a result of the agreement under this section.
Each such taxpayer shall pay the tax shown on the return to be due in
the manner and at the times as may be further prescribed by the tax
commissioner. Each such taxpayer shall include a copy of the director
of
development
services'
housing
and development's
certificate
of verification issued under division (E)(6) of this section. Failure
to submit a copy of the certificate with the return does not
invalidate the claim for exemption if the taxpayer submits a copy of
the certificate to the tax commissioner within the time prescribed by
section 5703.0510 of the Revised Code.
(J)
If the director of
housing
and
development
services
determines
that one or more taxpayers received an exemption from taxes due on
the purchase of computer data center equipment purchased for use at a
computer data center that no longer complies with the requirement
under division (E)(3) of this section, the director shall notify the
tax credit authority and, if applicable, the taxpayer that applied to
enter the agreement for the exemption under division (C) of this
section of the noncompliance. After receiving such a notice, and
after giving each taxpayer subject to the agreement an opportunity to
explain the noncompliance, the authority may terminate the agreement
and require each such taxpayer to pay to the state all or a portion
of the taxes that would have been owed in regards to the exempt
equipment in previous years, all as determined under rules adopted
pursuant to division (K) of this section. In determining the portion
of the taxes that would have been owed on the previously exempted
equipment to be paid to this state by a taxpayer, the authority shall
consider the effect of market conditions on the eligible computer
data center, whether the taxpayer continues to maintain other
operations in this state, and, with respect to agreements involving
multiple taxpayers, the taxpayer's level of responsibility for the
noncompliance. After making the determination, the authority shall
certify to the tax commissioner the amount to be paid by each
taxpayer subject to the agreement. The tax commissioner shall make an
assessment for that amount against each such taxpayer under Chapter
5739. or 5741. of the Revised Code. The time limitations on
assessments under those chapters do not apply to an assessment under
this division, but the tax commissioner shall make the assessment
within one year after the date the authority certifies to the tax
commissioner the amount to be paid by the taxpayer.
(K)
The director of
housing
and
development
services
,
after consultation with the tax commissioner and in accordance with
Chapter 119. of the Revised Code, shall adopt rules necessary to
implement this section. The rules may provide for recipients of tax
exemptions under this section to be charged fees to cover
administrative costs incurred in the administration of this section.
The fees collected shall be credited to the tax incentives operating
fund created in section 122.174 of the Revised Code. At the time the
director gives public notice under division (A) of section 119.03 of
the Revised Code of the adoption of the rules, the director shall
submit copies of the proposed rules to the chairpersons of the
standing committees on economic development in the senate and the
house of representatives.
(L)
On or before the first day of August of each year, the director of
housing
and
development
services
shall
submit a report to the governor, the president of the senate, and the
speaker of the house of representatives on the tax exemption
authorized under this section. The report shall include information
on the number of agreements that were entered into under this section
during the preceding calendar year, a description of the eligible
computer data center that is the subject of each such agreement, and
an update on the status of eligible computer data centers under
agreements entered into before the preceding calendar year.
(M)
A taxpayer may be made a party to an existing agreement entered into
under this section by the tax credit authority and another taxpayer
or group of taxpayers. In such a case, the taxpayer shall be entitled
to all benefits and bound by all obligations contained in the
agreement and all requirements described in this section. When an
agreement includes multiple taxpayers, each taxpayer shall be
entitled to a direct payment permit as authorized in division (I) of
this section.
Sec.
122.176.
(A)
For purposes of this section:
(1)
"Vacant commercial space" means space that has been
unoccupied and available for use in a trade or business for the
twelve months immediately preceding the lease or purchase date
described in division (B) of this section, located in either of the
following:
(a)
A building, seventy-five per cent or more of the square footage of
which has been unoccupied and available for use in a trade or
business for the twelve months immediately preceding the initial
lease or purchase date described in division (B) of this section;
(b)
A business park, seventy-five per cent or more of the square footage
of which has been unoccupied and available for use in a trade or
business for the twelve months immediately preceding the initial
lease or purchase date described in division (B) of this section.
For
the purpose of determining whether a building, the construction of
which is not complete, has been unoccupied for the required length of
time, the building first becomes "unoccupied" when its
construction discontinues as determined by the person who owned the
property at that time.
(2)
"Business park" means two or more buildings located on the
same or adjacent parcels held under common ownership.
(3)
"Building" means a building as defined in section 3781.06
of the Revised Code the construction of which is at least eighty-five
per cent complete and that may be lawfully occupied.
(4)
"Qualifying employee" means an employee employed by an
employer, provided the employee is employed at the vacant commercial
space for a minimum of forty hours per week and has been so employed
for at least one year, the employer pays the employee at a wage rate
equal to or greater than the minimum wage rate applicable under
Chapter 4111. of the Revised Code, employment of the employee
increases the employer's payroll above the employer's base employment
threshold, and the employee had not been employed by the employer
within sixty days before the date the employer purchases or enters
into a lease for a vacant commercial space.
(5)
"Base employment threshold" means the total payroll of the
employer on the date the employer purchases or enters into a lease
for a vacant commercial space.
(B)
This section does not apply to the federal government, the state, the
state's political subdivisions, or nonprofit organizations.
An
employer required to deduct and withhold income tax from an
employee's compensation under section 5747.06 and remit such amounts
under section 5747.07 of the Revised Code may apply to the director
of
housing
and
development
for a grant from the vacant facilities grant fund, provided that, on
or after
the effective date of this section as enacted by H.B. 18 of the 129th
general assembly
August 6, 2012
,
the employer occupies under a lease or purchases vacant commercial
space at which the employer employs at least fifty employees or at
least fifty per cent of its employees who are employed in this state.
An employer may qualify for the grant only once. The amount of the
grant awarded under this section shall be five hundred dollars for
each qualifying employee. No grant application shall be accepted by
the director three years or later after
the effective date of this section
August 6, 2012
.
An
employer does not qualify for a grant under this section if, during
the year of the employer's application, the employer is eligible to
claim a tax credit or other incentive under an agreement with the tax
credit authority.
The
director shall prescribe application materials and explanations. An
employer applying for a grant under this section shall submit the
following with the employer's application to the director:
(1)
An affidavit from the person who, in the case of a lease of vacant
commercial space, owns the property or, in the case of a purchase, is
the most recent owner of the property indicating that the building
meets the requirements of a vacant commercial space;
(2)
Payroll records indicating, for each qualifying employee, that the
employee was employed for one year or longer at the vacant commercial
space;
(3)
Quarterly reports of wage information submitted by the employer to
the department of job and family services pursuant to section 4141.20
of the Revised Code indicating the employer's qualifying employees
and the employer's base employment threshold;
(4)
A statement that the employer agrees to provide to the director any
receipts, invoices, or similar documents demonstrating that the
employer used the grant for the activities described in division (C)
of this section.
Upon
receipt of an application, the director shall review the application
and attached materials and approve the application if, to the
director's satisfaction, the employer fulfills all the grant
requirements of this section, and if, in the judgment of the
director, the unencumbered balance in the vacant facilities grant
fund is sufficient to fund the amount of the grant. Upon approval of
a grant application, the director shall authorize the award of the
grant from the vacant facilities grant fund to the employer.
(C)
An employer receiving a grant under this section from the vacant
facilities grant fund must use the grant for the acquisition,
construction, enlargement, improvement, or equipment of property,
structures, equipment, and facilities used by the employer in
business at the vacant commercial space occupied by the employer.
(D)
An employer may claim a grant under this section with respect to a
building, the construction of which is not complete, only if the
employer submits both of the following with the employer's
application:
(1)
A copy of a certificate of occupancy from the appropriate building
authority indicating that the building may lawfully be occupied
pursuant to
chapters
Chapters
3781. and 3791. of the Revised Code;
(2)
An affidavit from the person who owned the property at the time
construction discontinued indicating the date construction
discontinued.
(E)
There is hereby created in the state treasury the vacant facilities
grant fund, which shall consist of money appropriated to the fund by
the general assembly. Money in the fund shall be used solely for the
purposes of this section.
Sec.
122.177.
(A)
As used in this section:
(1)
"Business" means a sole proprietorship, a corporation for
profit, or a pass-through entity as defined in section 5733.04 of the
Revised Code.
(2)
"Career exploration internship" means a paid employment
relationship between a student intern and a business in which the
student intern acquires education, instruction, and experience
relevant to the student intern's career aspirations.
(3)
"Student intern" means an individual who, at the time the
business applies for a grant under division (B) of this section,
meets both of the following criteria:
(a)
The individual is entitled to attend school in this state.
(b)
The individual is either between sixteen and eighteen years of age or
is enrolled in grade eleven or twelve.
(B)
There is hereby created in the
department
of housing and
development
services
agency
the
career exploration internship program to award grants to businesses
that employ a student intern in a career exploration internship. To
qualify for a grant under the program, the career exploration
internship shall be at least twenty weeks in duration and include at
least two hundred hours of paid work and instruction in this state.
To obtain a grant, the business shall apply to the
department
of housing and
development
services
agency
before
the starting date of the career exploration internship. The
application shall include all of the following:
(1)
A brief description of the career exploration internship;
(2)
A signed statement by the student intern briefly describing the
student intern's career aspirations and how the student intern
believes this career exploration internship may help achieve those
aspirations;
(3)
A signed statement by a principal or guidance counselor at the
student intern's school or, in the case of a home schooled student,
an individual responsible for administering instruction to the
student intern, acknowledging that the employment opportunity
qualifies as a career exploration internship and expressing intent to
advise the student intern as provided in division (E) of this
section;
(4)
The name, address, and telephone number of the business;
(5)
Any other information required by the
department
of housing and
development
services agency
.
(C)(1)
The
department
of housing and
development
services
agency
shall
review and make a determination with respect to each application
submitted under division (B) of this section in the order in which
the application is received. The
agency
department
shall
not approve any application under this section that is received by
the
agency
department
later
than June 25, 2017, or that was submitted by a business that does not
have substantial operations in this state. The
agency
department
may
not otherwise deny an application unless the application is
incomplete, the proposed employment relationship does not qualify as
a career exploration internship for which a grant may be awarded
under this section, the business is ineligible to receive a grant
under division (D)(1) of this section, or the
agency
department
determines
that approving the application would cause the amount that could be
awarded to exceed the amount of money in the career exploration
internship fund.
(2)
The
agency
department
shall
send written notice of its determination to the applicant within
thirty days after receiving the application. If the
agency
department
determines
that the application shall not be approved, the notice shall include
the reasons for such determination.
(3)
The
agency's
department's
determination
is final and may not be appealed for any reason. A business may
submit a new or amended application under division (B) of this
section at any time before or after receiving notice under division
(C)(2) of this section.
(D)(1)
In any calendar year, the
department
of housing and
development
services
agency
shall
not award grants under this section to any business that has received
grants for three career exploration internships in that calendar
year. The
agency
department
shall
not award a grant to a business unless the
agency
department
receives
a report from the business within thirty days after the end of the
career exploration internship or thirteen months after the approval
of the application, whichever comes first, that includes all of the
following:
(a)
The date the student intern began the internship;
(b)
The date the internship ended or a statement that the student will
continue to be employed by the business;
(c)
The total number of hours during the internship that the student
intern was employed by the business;
(d)
The total wages paid by the business to the student intern during the
internship;
(e)
A signed statement by the student intern briefly describing the
duties performed during the internship and the skills and experiences
gained throughout the internship;
(f)
Any other information required by the
agency
department
.
(2)
If the
agency
department
receives
the report and determines that it contains all of the information and
the statement required by division (D)(1) of this section and that
the career exploration internship described in the report complies
with all the provisions of this section, the
agency
department
shall
award a grant to the business. The amount of the grant shall equal
the lesser of the following:
(a)
Fifty per cent of the wages paid by the business to the student
intern for the first twelve months following the date the application
was approved;
(b)
Five thousand dollars.
(E)
The student intern and the principal, guidance counselor, or other
qualified individual who signed the statement described in division
(B)(3) of this section shall meet at least once in the thirty days
following the end of the career exploration internship or in the
thirteenth month following the start of the career exploration
internship, whichever comes first. The purpose of the meeting is to
discuss the student intern's experiences during the career
exploration internship, consider the practical applications of these
experiences to the student intern's career aspirations, and to
establish or confirm goals for the student intern. If practicable,
the meeting shall be in person. Otherwise, the meeting may be
conducted over the telephone.
(F)
A business that receives a grant under this section may submit a new
application under division (B) of this section for another career
exploration internship with the same student intern. Such an
application does not have to include the statements otherwise
required by divisions (B)(2) and (3) of this section.
(G)
Annually, on the first day of August until August 2017, the
department
of housing and
development
services
agency
shall
compile a report indicating the number of career exploration
internships approved by the
agency
department
under
this section, the statements issued by the student interns under
divisions (B)(2) and (D)(1)(e) of this section, the number of student
interns that continued employment with the business after the
termination of the career exploration internship, and the total
amount of grants awarded under this section. The report shall not
disclose any student interns' personally identifiable information.
The
agency
department
shall
provide copies of the report to the governor, the speaker and
minority leader of the house of representatives, and the president
and minority leader of the senate.
(H)
The
department
of housing and
development
services
agency
may
adopt rules necessary to administer this section in accordance with
Chapter 119. of the Revised Code.
(I)
The career exploration internship fund is hereby created in the state
treasury. The fund shall consist of a portion of the proceeds from
the upfront license fees paid for the casino facilities authorized
under Section 6(C) of Article XV, Ohio Constitution. Money in the
fund shall be used by the
department
of housing and
development
services
agency
to
provide grants under this section.
Sec.
122.178.
(A)
As used in this section, "microcredential" means an
industry-recognized credential or certificate that an applicant may
complete in not more than one year and that is approved by the
chancellor of higher education.
(B)
There is hereby created the TechCred program to reimburse employers
from appropriations made for that purpose for training costs for
prospective and incumbent employees to earn a microcredential. The
department of
housing
and
development,
in consultation with the governor's office of workforce
transformation and the department of higher education, shall develop
the program.
(C)(1)
An employer seeking to participate in the program shall submit an
application to the director of
housing
and
development
during an application period established by the director. The
employer shall include in the application all of the following
information:
(a)
Proof that the employer is registered to do business in this state;
(b)
Proof that the employer is current on all tax obligations to the
state;
(c)
Proof that the employer is in compliance with all environmental
regulations applicable to the employer;
(d)
The name of the training provider from which a prospective or
incumbent employee will receive the training and earn the
microcredential;
(e)
The cost of the training;
(f)
The positions for which earning the microcredential will make a
prospective or incumbent employee qualified or the occupational skill
set that the prospective or incumbent employee will acquire on
completing the training;
(g)
The address of the facility or location at which the prospective or
incumbent employee is expected to be employed after completing the
training;
(h)
Any other information the director requires.
(2)
In addition to the information required under division (C)(1) of this
section, an employer seeking to participate in the program also may
submit any of the following information the employer wishes to
provide to the director:
(a)
The estimated wage after completing the training and earning the
microcredential;
(b)
The employer's certification as a minority business enterprise under
section 122.921 of the Revised Code or certification as an EDGE
business enterprise under section 122.922 of the Revised Code if
applicable;
(c)
The demographic information of the employer, including race and
gender;
(d)
Any demographic information of a prospective or incumbent employee
that the employee provides to the employer, including race and
gender;
(e)
Any other information the employer wishes to provide to the director.
(D)(1)
The director shall consider all applications submitted during an
application period after the application period ends. The director
shall consider the following factors in determining whether to
approve an application:
(a)
The duration of the training program;
(b)
The cost of the training;
(c)
A prospective or incumbent employee's estimated wage after completing
the training and earning the microcredential;
(d)
Whether approving an application will promote regional diversity in
apportioning reimbursements uniformly across the state;
(e)
Any other factors the director considers relevant in determining
whether to approve an application.
(2)
The chancellor of higher education shall establish a list of approved
microcredentials. The director shall not approve an application
submitted under division (C) of this section unless the
microcredentials identified in the application are included in the
chancellor's list. Not later than ninety days after April 14, 2020,
the director shall create a list of training providers that offer a
microcredential included in the chancellor's list. Thereafter, the
director shall annually update the list of training providers.
(3)
If the director approves an employer's application for participation
in the program, the approval is valid as long as the employer
maintains accurate application information under division (C)(1) of
this section with the director. The employer shall submit the updated
information to the director at the beginning of the third fiscal year
the employer participates in the program and every other subsequent
fiscal year thereafter.
(4)
The director shall not approve an application for participation in
the program if the employer has violated Chapter 4111. of the Revised
Code within the four fiscal years immediately preceding the date of
application.
(E)(1)
Each participating employer seeking reimbursement for training costs
for a prospective or incumbent employee shall submit an application
to the director that includes all of the following information for
each prospective or incumbent employee:
(a)
The prospective or incumbent employee's name and position, if
applicable, at the time of submitting the application;
(b)
The actual amount the employer paid to the training provider for the
training;
(c)
Evidence that the prospective or incumbent employee earned a
microcredential;
(d)
Evidence that the prospective or incumbent employee is a resident of
this state.
(2)
The amount of the reimbursement shall be not more than two thousand
dollars for each microcredential a prospective or incumbent employee
receives.
(F)
No participating employer shall require a prospective or incumbent
employee who receives a microcredential because the employer
participated in and received a reimbursement through the employer's
participation in the TechCred program to accept or continue
employment with the employer.
(G)
For the purposes of determining regional diversity under this
section, the following constitute the regions of the state:
(1)
The counties of Allen, Crawford, Defiance, Fulton, Hancock, Hardin,
Henry, Lucas, Ottawa, Paulding, Putnam, Sandusky, Seneca, Van Wert,
Williams, Wood, and Wyandot are one region;
(2)
The counties of Ashland, Ashtabula, Columbiana, Cuyahoga, Erie,
Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Richland,
Stark, Summit, Trumbull, Tuscarawas, and Wayne are one region;
(3)
The counties of Auglaize, Champaign, Clark, Clinton, Darke, Fayette,
Greene, Mercer, Miami, Montgomery, Preble, and Shelby are one region;
(4)
The counties of Delaware, Fairfield, Franklin, Knox, Licking, Logan,
Madison, Marion, Morrow, Pickaway, and Union are one region;
(5)
The counties of Adams, Athens, Gallia, Highland, Hocking, Jackson,
Lawrence, Meigs, Pike, Ross, Scioto, and Vinton are one region;
(6)
The counties of Belmont, Carroll, Coshocton, Guernsey, Harrison,
Holmes, Jefferson, Monroe, Morgan, Muskingum, Noble, Perry, and
Washington are one region;
(7)
The counties of Brown, Butler, Clermont, Hamilton, and Warren are one
region.
(H)(1)
The director shall do both of the following regarding the operation
of the program:
(a)
Create an application to participate in the program and an
application for reimbursement;
(b)
Create an internet web site with the applications for and information
regarding the program created in this section.
(2)
The governor's office of workforce transformation shall include on
the office's internet web site either of the following:
(a)
The applications for and information regarding the program created in
this section;
(b)
An internet link to the internet web site created under division
(H)(1)(b) of this section.
(I)
The director may adopt rules in accordance with Chapter 119. of the
Revised Code regarding the operation of the program as the director
considers necessary to administer the program, including establishing
priority guidelines for approving applications under division (D) of
this section.
Sec.
122.179.
(A)
As used in this section:
"Charitable
organization" has the same meaning as in section 1716.01 of the
Revised Code.
"Independent
college or university" means a nonprofit institution of higher
education that has a certificate of authorization under Chapter 1713.
of the Revised Code.
"Industry
sector partnership" means a workforce collaborative that
organizes key leaders and stakeholders of an industry cluster into a
working group that focuses on achieving a shared goal of meeting the
industry cluster's human resources needs.
"Ohio
technical center" has the same meaning as in section 3333.94 of
the Revised Code.
"Sector
partnership network" means a regional or statewide workforce
collaborative that organizes multiple industry sector partnerships
into a working group that focuses on achieving a shared goal of
meeting the human resources needs of a region or statewide.
"State
board" and "local board" have the same meanings as in
section 6301.01 of the Revised Code.
"State
institution of higher education" has the same meaning as in
section 3345.011 of the Revised Code.
(B)
A collaboration of multiple employers of an industry cluster may
organize and lead an industry sector partnership by convening or
acting in partnership with representatives of businesses, employers,
or other institutions of an industry cluster, including small- and
medium-sized employers where practicable, and a collaboration of
multiple industry sector partnerships may convene or act in
partnership together as a sector partnership network. An industry
sector partnership may include representatives of one or more of the
following:
(1)
A school district;
(2)
A state institution of higher education;
(3)
An Ohio technical center;
(4)
An independent college or university;
(5)
The state or a local government;
(6)
A state or local economic or workforce development agency;
(7)
A state board or local board;
(8)
The department of job and family services;
(9)
A business, trade, or industry association;
(10)
A charitable organization;
(11)
An economic development organization;
(12)
A nonprofit or community-based organization or intermediary;
(13)
The Ohio state university extension division established under
section 3335.16 of the Revised Code or the central state university
extension program;
(14)
Any other organization that the industry sector partnership considers
necessary to further the shared goal of meeting the industry
cluster's human resources needs.
(C)
The director of
housing
and
development
services
,
in consultation with the governor's office of workforce
transformation, shall develop a grant program to support industry
sector partnerships and sector partnership networks. An industry
sector partnership or sector partnership network may use a grant
awarded under this section to do any of the following:
(1)
Hire employees to coordinate industry sector partnership or sector
partnership network activities;
(2)
Develop curricula or other educational resources to support the
industry sector partnership or sector partnership network;
(3)
Market the industry sector partnership or sector partnership network
and opportunities the industry sector partnership or sector
partnership network creates for workforce development activities;
(4)
Any other activity the director has approved in rules adopted under
division (E) of this section.
(D)
The director shall do both of the following:
(1)
Establish a system for evaluating and scoring grant applications,
which prioritizes collaborative community-based solutions, including
sector partnership networks;
(2)
Award a grant to an industry sector partnership or a sector
partnership network that submits a complete application for funding
describing the activities in division (C) of this section the
partnership or network will use the funds to support and meets the
scoring criteria established under division (D)(1) of this section.
(E)
The director may adopt rules in accordance with Chapter 119. of the
Revised Code as the director considers necessary to administer the
grant program.
Sec.
122.1710.
(A)
As used in this section:
(1)
"Low-income individual" has the same meaning as "low-income
person" in section 122.66 of the Revised Code.
(2)
"Microcredential" has the same meaning as in section
122.178 of the Revised Code.
(3)
"OhioMeansJobs web site" has the same meaning as in section
6301.01 of the Revised Code.
(4)
"Partially unemployed" and "totally unemployed"
have the same meanings as in section 4141.01 of the Revised Code.
(5)
"Training provider" means all of the following:
(a)
A state institution of higher education as defined in section
3345.011 of the Revised Code;
(b)
An Ohio technical center as defined in section 3333.94 of the Revised
Code;
(c)
A private business or institution that offers training to allow an
individual to earn one or more microcredentials.
(B)
There is hereby created the individual microcredential assistance
program to reimburse training providers for training costs for
individuals to earn a microcredential. The department of
housing
and
development,
in consultation with the governor's office of workforce
transformation, shall administer the program.
(C)
A training provider seeking to participate in the program shall
submit an application to the director of
housing
and
development.
The training provider shall include in the application all of the
following information:
(1)
The number of microcredentials the training provider will seek a
reimbursement for and the names of the microcredentials;
(2)
The cost of the training for each microcredential;
(3)
The total amount of the reimbursement the training provider will
seek;
(4)
The training provider's plan to provide opportunities for individuals
who are low income, partially unemployed, or totally unemployed to
participate in a training program and receive a microcredential;
(5)
Any other information the director requires.
(D)(1)
The director shall consider the following factors in determining
whether to approve an application submitted under division (C) of
this section:
(a)
The duration of the training program;
(b)
The cost of the training;
(c)
Whether approving an application will promote regional diversity in
apportioning reimbursements uniformly across the state;
(d)
The training provider's commitment to providing opportunities for
individuals who are low income, partially unemployed, or totally
unemployed to participate in a training program and receive a
microcredential.
(2)
In determining regional diversity under division (D)(1)(c) of this
section, the director shall use the regions established under
division (G) of section 122.178 of the Revised Code.
(3)
The director shall not approve an application submitted under this
section if either of the following apply:
(a)
The microcredentials identified in the application are not included
in the list the chancellor of higher education establishes under
section 122.178 of the Revised Code.
(b)
The training provider has violated Chapter 4111. of the Revised Code
within the four fiscal years immediately preceding the date of
application.
(4)
The director shall notify a training provider in writing of the
director's decision to approve or deny the training provider's
application to participate in the program.
(E)
A participating training provider shall not charge an individual
participating in a training program to earn a microcredential for
which the training provider is seeking a reimbursement for either of
the following:
(1)
Any costs associated with the individual's participation in the
training program;
(2)
Any costs to the training provider resulting from an individual not
completing the training program.
(F)(1)
Each participating training provider seeking reimbursement for
training costs for one or more microcredentials earned by one or more
individuals in a training program shall submit an application to the
director after the individual or individuals have earned a
microcredential. The training provider shall include in the
reimbursement application all of the following information:
(a)
The actual cost for the training provider to provide each individual
with the training;
(b)
Evidence that each individual earned a microcredential;
(c)
Any demographic information of each individual that the individual
provides to the training provider, including race and gender.
(2)
The amount of the reimbursement shall be not more than three thousand
dollars for each microcredential an individual receives. A
participating training provider may not receive a reimbursement for
any additional individual who earns a microcredential beyond the
number of microcredentials included in the application under division
(C) of this section. A participating training provider may receive a
total reimbursement of five hundred thousand dollars in a fiscal
year.
(3)
A training provider may request that an individual participating in
the training provider's program provide demographic information to
the training provider, including race and gender. An individual is
not required to provide that information.
(G)
The director shall do both of the following regarding the operation
of the program:
(1)
Create an application to participate in the program and an
application for reimbursement;
(2)
Create and distribute a survey to each individual who successfully
earned a microcredential because of a reimbursement to a training
provider under this section inquiring as to the individual's
occupation and wages at the time of completing the survey.
(H)
The director shall include on the internet web site maintained by the
department, and the governor's office of workforce transformation
shall include on the office's internet web site and the OhioMeansJobs
web site, all of the content created under division (G) of this
section.
(I)
The director may adopt rules in accordance with Chapter 119. of the
Revised Code as the director considers necessary to implement this
section, including establishing priority guidelines for approving
applications under division (D) of this section.
(J)
Any personal information of an individual the director receives in
connection with the individual microcredential assistance program
created under this section is not a public record for purposes of
section 149.43 of the Revised Code. However, the director may use the
information as necessary to complete the reports required under
section 122.1711 of the Revised Code.
Sec.
122.1711.
(A)
Beginning on the first day of August immediately following
the effective date of this section
April 14, 2020
,
and every August first thereafter, the director of
housing
and
development
services
shall
submit to the general assembly a written report that compiles and
includes information required in this section regarding the programs
created under sections 122.178, 122.179, and 122.1710 of the Revised
Code.
(1)
For the TechCred program created under section 122.178 of the Revised
Code, the director shall include in the report required under
division (A) of this section all of the following information:
(a)
The average per cent rate change of wages during the previous year,
if any, for prospective or incumbent employees who earned a
microcredential categorized by microcredentials earned in each region
and statewide;
(b)
The average per cent rate change of wages during the previous years,
if any, for prospective or incumbent employees who earned a
microcredential categorized by the region in which employees reside
and statewide;
(c)
The average annual wages paid to positions for which holding a
microcredential or having the occupational skills acquired through
obtaining a microcredential is required, categorized by each region
and statewide;
(d)
The rate of change during the previous year of unemployment
categorized by each region and statewide;
(e)
A list of the microcredentials established by the chancellor of
higher education under section 122.178 of the Revised Code
categorized by each region and statewide;
(f)
A demographic analysis of employees who earned a microcredential
under the TechCred program based on the race and gender of each
employee;
(g)
A demographic analysis of employers who received a reimbursement
through the TechCred program based on the race and gender of each
employer;
(h)
Any other information the director wishes to include.
(2)
For the individual microcredential assistance program created under
section 122.1710 of the Revised Code, the director shall include in
the report required under division (A) of this section all of the
following information:
(a)
The information required under divisions (A)(1)(a) to (c) of this
section, except that the information shall represent the individuals
who successfully earned a microcredential because of a reimbursement
to a training provider under the individual microcredential
assistance program;
(b)
A demographic analysis of individuals who earned a microcredential
under the individual microcredential assistance program based on the
race and gender of each individual;
(c)
An analysis of the results of the surveys the director distributed
under division (G) of section 122.1710 of the Revised Code
categorized by each region and statewide;
(d)
The rate of completion for each approved microcredential categorized
by region and statewide;
(e)
Any other information the director wishes to include.
(3)
For the grant program to support industry sector partnerships and
sector partnership networks created under section 122.179 of the
Revised Code, the director shall include in the report required under
division (A) of this section all of the following information:
(a)
A list, categorized by region and statewide, of each industry sector
partnership and sector partnership network to which a grant was
awarded under section 122.179 of the Revised Code;
(b)
A list detailing the member composition of each industry sector
partnership and sector partnership network to which a grant was
awarded under section 122.179 of the Revised Code, including each
employer and representative of an industry cluster;
(c)
Information regarding the activities described in division (C) of
section 122.179 of the Revised Code for which industry sector
partnerships and sector partnership networks used grants awarded
under that section.
(B)
In reporting on regional information under this section, the director
shall use the regions established under section 122.178 of the
Revised Code.
(C)
The director shall include in the report under division (A) of this
section any information the director receives under division
(C)(2)(b), (c), or (d) of section 122.178 of the Revised Code or
division (F)(1)(c) of section 122.1710 of the Revised Code.
(D)
The director shall market the programs created under sections
122.178, 122.179, and 122.1710 of the Revised Code.
Sec.
122.18.
(A)
As used in this section:
(1)
"Facility" means all real property and interests in real
property owned by either of the following:
(a)
A landlord and leased to a tenant pursuant to a project that is the
subject of an agreement under this section;
(b)
The United States or any department, agency, or instrumentality of
the United States.
(2)
"Full-time employee" has the same meaning as under section
122.17 of the Revised Code.
(3)
"Landlord" means a county or municipal corporation, or a
corporate entity that is an instrumentality of a county or municipal
corporation and that is not subject to the tax imposed by section
5733.06 or 5747.02 of the Revised Code.
(4)
"New employee" means a full-time employee first employed
by, or under or pursuant to a contract with, the tenant in the
project that is the subject of the agreement after a landlord enters
into an agreement with the tax credit authority under this section.
(5)
"New income tax revenue" means the total amount withheld
under section 5747.06 of the Revised Code by the tenant or tenants at
a facility during a year from the compensation of new employees for
the tax levied under Chapter 5747. of the Revised Code.
(6)
"Retained income tax revenue" means the total amount
withheld under section 5747.06 of the Revised Code from employees
retained at an existing facility recommended for closure to the base
realignment and closure commission in the United States department of
defense.
(7)
"Tenant" means the United States, any department, agency,
or instrumentality of the United States, or any person under contract
with the United States or any department, agency, or instrumentality
of the United States.
(B)
The tax credit authority may enter into an agreement with a landlord
under which an annual payment equal to the new income tax revenue or
retained income tax revenue, as applicable, or the amount called for
under division (D)(3) or (4) of this section shall be made to the
landlord from moneys of this state that were not raised by taxation,
and shall be credited by the landlord to the rental owing from the
tenant to the landlord for a facility.
(C)
A landlord that proposes a project to create new jobs in this state
or retain jobs in this state at an existing facility recommended for
closure or realignment to the base realignment and closure commission
in the United States department of defense may apply to the tax
credit authority to enter into an agreement for annual payments under
this section. The director of
housing
and
development
shall prescribe the form of the application. After receipt of an
application, the authority may enter into an agreement with the
landlord for annual payments under this section if it determines all
of the following:
(1)
The project will create new jobs in this state or retain jobs at a
facility recommended for closure or realignment to the base
realignment and closure commission in the United States department of
defense.
(2)
The project is economically sound and will benefit the people of this
state by increasing opportunities for employment and strengthening
the economy of this state.
(3)
Receiving the annual payments will be a major factor in the decision
of the landlord and tenant to go forward with the project.
(D)
An agreement with a landlord for annual payments shall include all of
the following:
(1)
A description of the project that is the subject of the agreement;
(2)
The term of the agreement, which shall not exceed twenty years;
(3)
Based on the estimated new income tax revenue or retained income tax
revenue, as applicable, to be derived from the facility at the time
the agreement is entered into, provision for a guaranteed payment to
the landlord commencing with the issuance by the landlord of any
bonds or other forms of financing for the construction of the
facility and continuing for the term approved by the authority;
(4)
Provision for offsets to this state of the annual payment in years in
which such annual payment is greater than the guaranteed payment of
amounts previously paid by this state to the landlord in excess of
the new income tax revenue or retained income tax revenue, as
applicable, by reason of the guaranteed payment;
(5)
A specific method for determining how many new employees are employed
during a year;
(6)
A requirement that the landlord annually shall obtain from the tenant
and report to the director of
housing
and
development
the number of new employees and the new income tax revenue withheld
in connection with the new employees, or the number of retained
employees and the retained income tax revenue withheld in connection
with the retained employees, as applicable, and any other information
the director needs to perform the director's duties under this
section;
(7)
A requirement that the director of
housing
and
development
annually shall verify the amounts reported under division (D)(6) of
this section, and after doing so shall issue a certificate to the
landlord stating that the amounts have been verified.
(E)
The director of
housing
and
development,
in accordance with Chapter 119. of the Revised Code, shall adopt
rules necessary to implement this section.
Sec.
122.19.
As
used in sections 122.19 to 122.22 of the Revised Code:
(A)
"Distressed area" has the same meaning as in section 122.16
of the Revised Code.
(B)
"Eligible applicant" means any of the following that are
designated by the legislative authority of a county, township, or
municipal corporation as provided in division (B)(1) of section
122.22 of the Revised Code:
(1)
A port authority as defined in division (A) of section 4582.01 or
division (A) of section 4582.21 of the Revised Code;
(2)
A community improvement corporation as described in section 1724.01
of the Revised Code;
(3)
A community-based organization or action group that provides social
services and has experience in economic development;
(4)
Any other nonprofit economic development entity;
(5)
A county, township, or municipal corporation if it designates itself.
(C)
"Eligible area" means a distressed area, a labor surplus
area, an inner city area, or a situational distress area, as
designated annually by the director of
housing
and
development
under division (A) of section 122.21 of the Revised Code.
(D)
"Governing body" means, in the case of a county, the board
of county commissioners; in the case of a municipal corporation, the
legislative authority; and in the case of a township, the board of
township trustees.
(E)
"Infrastructure improvements" includes site preparation,
including building demolition and removal; retention ponds and flood
and drainage improvements; streets, roads, bridges, and traffic
control devices; parking lots and facilities; water and sewer lines
and treatment plants; gas, electric, and telecommunications hook-ups;
and waterway and railway access improvements.
(F)
"Inner city area" means, in a municipal corporation that
has a population of at least one hundred thousand and does not meet
the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within its
boundaries that are comprised of the most recent census block tracts
that individually have at least twenty per cent of their population
at or below the state poverty level, or other census block tracts
contiguous to such census block tracts.
(G)
"Labor surplus area" means an area designated as a labor
surplus area by the United States department of labor.
(H)
"Official poverty line" has the same meaning as in division
(A) of section 3923.51 of the Revised Code.
(I)
"Redevelopment plan" means a plan that includes all of the
following: a plat; a land use description; identification of all
utilities and infrastructure needed to develop the property,
including street connections; highway, rail, air, or water access;
utility connections; water and sewer treatment facilities; storm
drainage; and parking, and any other elements required by a rule
adopted by the director of
housing
and
development
under division (B) of section 122.21 of the Revised Code.
(J)
"Situational distress area" means a county or a municipal
corporation that has experienced or is experiencing a closing or
downsizing of a major employer that will adversely affect the
county's or municipal corporation's economy. In order to be
designated as a situational distress area for a period not to exceed
thirty-six months, the county or municipal corporation may petition
the director of
housing
and
development.
The petition shall include documentation that demonstrates all of the
following:
(1)
The number of jobs lost by the closing or downsizing;
(2)
The impact that the job loss has on the county's or municipal
corporation's unemployment rate as measured by the Ohio department of
job and family services;
(3)
The annual payroll associated with the job loss;
(4)
The amount of state and local taxes associated with the job loss;
(5)
The impact that the closing or downsizing has on the suppliers
located in the county or municipal corporation.
Sec.
122.20.
(A)
The urban and rural initiative grant program is hereby created to
promote economic development and improve the economic welfare of the
people of the state, which shall be accomplished by the department of
housing
and
development
awarding grants to eligible applicants for use in an eligible area
for any of the following purposes:
(1)
Land acquisition;
(2)
Infrastructure improvements;
(3)
Voluntary actions undertaken on property eligible for the voluntary
action program created under Chapter 3746. of the Revised Code;
(4)
Renovation of existing structures.
(B)
The total amount of grants awarded under the program shall not exceed
two million dollars. No grant shall be awarded without the prior
approval of the controlling board.
(C)
As a condition of receiving a grant under this section, and except as
provided in division (D) of this section, an applicant shall agree
not to permit the use of a site that is developed or improved with
such grant moneys to cause the relocation of jobs to that site from
elsewhere in this state.
(D)
A site developed or improved with grant moneys awarded under this
section may be the site of jobs relocated from elsewhere in this
state if the director of
housing
and
development
does all of the following:
(1)
Makes a written determination that the site from which the jobs would
be relocated is inadequate to meet market or industry conditions,
expansion plans, consolidation plans, or other business
considerations affecting the relocating employer;
(2)
Provides a copy of the determination required by division (D)(1) of
this section to the members of the general assembly whose legislative
districts include the site from which the jobs would be relocated,
and to the joint legislative committee on tax incentives;
(3)
Determines that the governing body of the area from which the jobs
would be relocated has been notified in writing by the relocating
company of the possible relocation.
(E)
No eligible applicant that receives from the program any grant of
money for land acquisition, infrastructure improvements, or
renovation of existing structures in order to develop an industrial
park site for a distressed area, labor surplus area, or situational
distress area as defined in section 122.19 of the Revised Code that
also is a distressed area, labor surplus area, or situational
distress area as defined in section 122.23 of the Revised Code shall
use the money to compete against any existing Ohio industrial parks.
(F)
An eligible applicant that receives a grant from the program shall
not be precluded from being considered for or participating in other
financial assistance programs offered by the department of
housing
and
development,
the Ohio environmental protection agency, or the Ohio water
development authority.
Sec.
122.21.
In
administering the urban and rural initiative grant program created
under section 122.20 of the Revised Code, the director of
housing
and
development
shall do all of the following:
(A)
Designate, within three months after the publication of each
decennial census by the United States census bureau, the entities
that constitute the eligible areas in this state;
(B)
Adopt rules in accordance with Chapter 119. of the Revised Code
establishing procedures and forms by which eligible applicants in
eligible areas may apply for a grant, which procedures shall include
a requirement that the applicant file a redevelopment plan; standards
and procedures for reviewing applications and awarding grants;
procedures for distributing grants to recipients; procedures for
monitoring the use of grants by recipients; requirements, procedures,
and forms by which recipients who have received grants shall report
their use of that assistance; and standards and procedures for
terminating and requiring repayment of grants in the event of their
improper use. The rules adopted under this division shall comply with
sections 122.19 to 122.22 of the Revised Code and shall include a
rule requiring that an eligible applicant who receives a grant from
the program provide a matching contribution of at least twenty-five
per cent of the amount of the grant awarded to the eligible
applicant.
The
rules shall require that any eligible applicant for a grant for land
acquisition demonstrate to the director that the property to be
acquired meets all state environmental requirements and that
utilities for that property are available and adequate. The rules
shall require that any eligible applicant for a grant for property
eligible for the voluntary action program created under Chapter 3746.
of the Revised Code receive disbursement of grant moneys only after
receiving a covenant not to sue from the director of environmental
protection under section 3746.12 of the Revised Code and shall
require that those moneys be disbursed only as reimbursement of
actual expenses incurred in the undertaking of the voluntary action.
The rules shall require that whenever any money is granted for land
acquisition, infrastructure improvements, or renovation of existing
structures in order to develop an industrial park site for a
distressed area, labor surplus area, or situational distress area as
defined in section 122.19 of the Revised Code that also is a
distressed area, labor surplus area, or situational distress area as
defined in section 122.23 of the Revised Code, a substantial portion
of the site be used for manufacturing, distribution, high technology,
research and development, or other businesses in which a majority of
the product or service produced is exported out of the state. Any
retail use at the site shall not constitute a primary use but only a
use incidental to other eligible uses. The rules shall require that
whenever any money is granted for land acquisition, infrastructure
improvements, and renovation of existing structures in order to
develop an industrial park site for a distressed area, labor surplus
area, or situational distress area as defined in section 122.19 of
the Revised Code that also is a distressed area, labor surplus area,
or situational distress area as defined in section 122.23 of the
Revised Code, the applicant for the grant shall verify to the
department of
housing
and
development
the existence of a local economic development planning committee in a
municipal corporation, county, or township whose territory includes
the eligible area. The committee shall consist of members of the
public and private sectors who live in that municipal corporation,
county, or township. The local economic development planning
committee shall prepare and submit to the department a five-year
economic development plan for that municipal corporation, county, or
township that identifies, for the five-year period covered by the
plan, the economic development strategies of a municipal corporation,
county, or township whose territory includes the proposed industrial
park site. The economic development plan shall describe in detail how
the proposed industrial park would complement other current or
planned economic development programs for that municipal corporation,
county, or township, including, but not limited to, workforce
development initiatives, business retention and expansion efforts,
small business development programs, and technology modernization
programs.
(C)
Report to the governor, president of the senate, speaker of the house
of representatives, and minority leaders of the senate and the house
of representatives by the first day of August of each year on the
activities carried out under the program during the preceding
calendar year. The report shall include the total number of grants
made that year, and, for each individual grant awarded, the
following: the amount and recipient, the eligible applicant, the
purpose for awarding the grant, the number of firms or businesses
operating at the awarded site, the number of employees employed by
each firm or business, any excess capacity at an industrial park
site, and any additional information the director declares to be
relevant.
(D)
Inform local governments and others in the state of the availability
of grants under section 122.20 of the Revised Code;
(E)
Annually compile, pursuant to rules adopted by the director of
housing
and
development
in accordance with Chapter 119. of the Revised Code, using pertinent
information submitted by any municipal corporation, county, or
township, a list of industrial parks located in the state. The list
shall include the following information, expressed if possible in
terms specified in the director's rules adopted under this division:
location of each industrial park site, total acreage of each park
site, total occupancy of each park site, total capacity for new
business at each park site, total capacity of each park site for
sewer, water, and electricity, a contact person for each park site,
and any additional information the director declares to be relevant.
Once the list is compiled, the director shall make it available to
the governor, president of the senate, speaker of the house of
representatives, and minority leaders of the senate and the house of
representatives.
Sec.
122.22.
(A)
In order to be eligible for a grant under section 122.20 of the
Revised Code, the applicant shall demonstrate both of the following
to the director of
housing
and
development:
(1)
That the applicant is proposing to carry out the purposes described
in section 122.20 of the Revised Code in an entity that has been
designated as an eligible area by the director of
housing
and
development
under division (A) of section 122.21 of the Revised Code;
(2)
The applicant's capacity to undertake and oversee the project, as
evidenced by documentation of the applicant's past performance in
economic development projects.
(B)
In order for an applicant to be eligible for a grant under section
122.20 of the Revised Code, the governing body of the entity that has
been designated as an eligible area by the director of
housing
and
development
in accordance with division (A) of section 122.21 of the Revised Code
shall, by resolution or ordinance, do all of the following:
(1)
Designate the applicant that will carry out the purposes described in
section 122.20 of the Revised Code and that qualifies as one of the
five categories of eligible applicant listed in division (B) of
section 122.19 of the Revised Code;
(2)
Specify the eligible area's financial participation in the project;
(3)
Include a marketing strategy to be utilized in administering the
project that includes details used in past successful projects;
(4)
Identify a management plan for the project.
(C)
A governing body may designate the political subdivision it governs
to be an eligible applicant.
(D)
In order to be eligible for a grant under section 122.20 of the
Revised Code for land acquisition, infrastructure improvements, or
renovation of existing structures in order to develop an industrial
park site for a distressed area, labor surplus area, or situational
distress area as defined in section 122.19 of the Revised Code that
also is a distressed area, labor surplus area, or situational
distress area as defined in section 122.23 of the Revised Code, an
applicant must be approved as a grant applicant by resolution of the
legislative authority of each county containing any area that has
been designated as an eligible area by the director of
housing
and
development
under division (A) of section 122.21 of the Revised Code and whose
governing body has designated the applicant to seek a grant for any
of these purposes on behalf of the eligible area. The director shall
adopt rules in accordance with Chapter 119. of the Revised Code
establishing criteria for the legislative authority to use in
determining whether to approve a qualified applicant.
Sec.
122.23.
As
used in sections 122.23 to 122.27 of the Revised Code:
(A)
"Distressed area" means a county with a population of less
than one hundred twenty-five thousand according to the most recent
federal decennial census published by the United States census bureau
that meets at least two of the following criteria:
(1)
Its average rate of unemployment, during the most recent five-year
period for which local area unemployment statistics published by the
United States bureau of labor statistics are available, as of the
date the most recent federal decennial census was published, is equal
to or greater than one hundred twenty-five per cent of the average
rate of unemployment for the United States for the same period.
(2)
It has a per capita personal income equal to or less than eighty per
cent of the per capita personal income of the United States as
determined by the most recently available data from the United States
department of commerce, bureau of economic analysis as of the date
the most recent federal decennial census was published.
(3)
Its ratio of personal current transfer receipts to total personal
income is equal to or greater than twenty-five per cent, as
determined by the most recently available data from the United States
department of commerce, bureau of economic analysis as of the date
the most recent federally decennial census was published.
If
a federal agency ceases to publish the applicable data described in
division (A) of this section, the director of
housing
and
development
shall designate, on the department of
housing
and
development's
web site, an alternative source of the applicable data published by a
federal agency or, if no such source is available, another reliable
source.
(B)
"Eligible applicant" means any of the following that is
designated by the governing body of an eligible area as provided in
division (B)(1) of section 122.27 of the Revised Code:
(1)
A port authority as defined in division (A) of section 4582.01 or
division (A) of section 4582.21 of the Revised Code;
(2)
A community improvement corporation as defined in section 1724.01 of
the Revised Code;
(3)
A community-based organization or action group that provides social
services and has experience in economic development;
(4)
Any other nonprofit economic development entity;
(5)
A private developer that previously has not received financial
assistance under section 122.24 of the Revised Code in the current
biennium and that has experience and a successful history in
industrial development.
(C)
"Eligible area" means a distressed area, a labor surplus
area, a rural area, or a situational distress area, as designated by
the director of
housing
and
development
pursuant to division (A) of section 122.25 of the Revised Code.
(D)
"Labor surplus area" means an area designated as a labor
surplus area by the United States department of labor.
(E)
"Official poverty line" has the same meaning as in division
(A) of section 3923.51 of the Revised Code.
(F)
"Situational distress area" means a county that has a
population of less than one hundred twenty-five thousand, or a
municipal corporation in such a county, that has experienced or is
experiencing a closing or downsizing of a major employer that will
adversely affect the county's or municipal corporation's economy. In
order to be designated as a situational distress area for a period
not to exceed thirty-six months, the county or municipal corporation
may petition the director of
housing
and
development.
The petition shall include documentation that demonstrates all of the
following:
(1)
The number of jobs lost by the closing or downsizing;
(2)
The impact that the job loss has on the county's or municipal
corporation's unemployment rate as measured by the director of job
and family services;
(3)
The annual payroll associated with the job loss;
(4)
The amount of state and local taxes associated with the job loss;
(5)
The impact that the closing or downsizing has on the suppliers
located in the rural county or municipal corporation.
(G)
"Governing body" means, in the case of a county, the board
of county commissioners; in the case of a municipal corporation, the
legislative authority; and in the case of a township, the board of
township trustees.
(H)
"Infrastructure improvements" includes site preparation,
including building demolition and removal; retention ponds and flood
and drainage improvements; streets, roads, bridges, and traffic
control devices; parking lots and facilities; water and sewer lines
and treatment plants; gas, electric, and telecommunications hook-ups;
and waterway and railway access improvements.
(I)
"Private developer" means any individual, firm,
corporation, or entity, other than a nonprofit entity, limited profit
entity, or governmental entity.
(J)
"Rural area" means any Ohio county that was an eligible
area immediately prior to September 30, 2021, and any other Ohio
county that is not designated as part of a metropolitan statistical
area by the United States office of management and budget.
Sec.
122.24.
To
promote economic development in rural areas and to improve the
economic welfare of the people of the state, the director of
housing
and
development
shall administer the rural industrial park loan program, which is
hereby established in accordance with Ohio Constitution, Article
VIII, Section 13, to assist eligible applicants in financing the
development and improvement of industrial parks by providing
financial assistance in the form of loans and loan guarantees for
land acquisition; constructing, reconstructing, rehabilitating,
remodeling, renovating, enlarging, or improving industrial park
buildings; and infrastructure improvements.
This
program shall not be used to compete against existing Ohio industrial
parks.
An
eligible applicant receiving assistance under the rural industrial
park program is not precluded from further participation in this or
any other department of
housing
and
development
financial program, except that a private developer that previously
has received financial assistance under this section is precluded
from further participation in the rural industrial park loan program.
Sec.
122.25.
(A)
In administering the program established under section 122.24 of the
Revised Code, the director of
housing
and
development
shall do all of the following:
(1)
Designate, within three months after the publication of each
decennial census by the United States census bureau, the entities
that constitute the eligible areas in this state as defined in
section 122.23 of the Revised Code;
(2)
Inform local governments and others in the state of the availability
of the program and financial assistance established under sections
122.23 to 122.27 of the Revised Code;
(3)
Report to the governor, president of the senate, speaker of the house
of representatives, and minority leaders of the senate and the house
of representatives by the first day of August of each year on the
activities carried out under the program during the preceding
calendar year. The report shall include the number of loans made that
year and the amount and recipient of each loan.
(4)
Work in conjunction with conventional lending institutions, local
revolving loan funds, private investors, and other private and public
financing sources to provide loans or loan guarantees to eligible
applicants;
(5)
Establish fees, charges, interest rates, payment schedules, local
match requirements, and other terms and conditions for loans and loan
guarantees provided under the program;
(6)
Require each applicant to demonstrate the suitability of any site for
the assistance sought; that the site has been surveyed, that the site
has adequate or available utilities, and that there are no zoning
restrictions, environmental regulations, or other matters impairing
the use of the site for the purpose intended;
(7)
Require each applicant to provide a marketing plan and management
strategy for the project;
(8)
Adopt rules establishing all of the following:
(a)
Forms and procedures by which eligible applicants may apply for
assistance;
(b)
Criteria for reviewing, evaluating, and ranking applications, and for
approving applications that best serve the goals of the program;
(c)
Reporting requirements and monitoring procedures;
(d)
Guidelines regarding situations in which industrial parks would be
considered to compete against one another for the purposes of
division (B)(2) of section 122.27 of the Revised Code;
(e)
Any other rules necessary to implement and administer the program.
(B)
The director may adopt rules establishing requirements governing the
use of any industrial park site receiving assistance under section
122.24 of the Revised Code, such that a certain portion of the site
must be used for manufacturing, distribution, high technology,
research and development, or other businesses wherein a majority of
the product or service produced is exported out of the state.
(C)
As a condition of receiving assistance under section 122.24 of the
Revised Code, and except as provided in division (D) of this section,
an applicant shall agree, for a period of five years, not to permit
the use of a site that is developed or improved with such assistance
to cause the relocation of jobs to that site from elsewhere in the
state.
(D)
A site developed or improved with assistance under section 122.24 of
the Revised Code may be the site of jobs relocated from elsewhere in
the state if the director does all of the following:
(1)
Makes a written determination that the site from which the jobs would
be relocated is inadequate to meet market or industry conditions,
expansion plans, consolidation plans, or other business
considerations affecting the relocating employer;
(2)
Provides a copy of the determination required by division (D)(1) of
this section to the members of the general assembly whose legislative
districts include the site from which the jobs would be relocated;
(3)
Determines that the governing body of the area from which the jobs
would be relocated has been notified in writing by the relocating
company of the possible relocation.
(E)
The director shall obtain the approval of the controlling board for
any loan or loan guarantee provided under sections 122.23 to 122.27
of the Revised Code.
Sec.
122.26.
The
rural industrial park loan fund is hereby created in the state
treasury for the purposes of the program established under section
122.24 of the Revised Code. The director of
housing
and
development
services
shall
deposit money received for the purposes of that section to the credit
of the fund.
Sec.
122.27.
(A)
In order to be eligible for financial assistance under section 122.24
of the Revised Code, an applicant shall demonstrate to the director
of
housing
and
development
the applicant's capacity to undertake and oversee the project, as
evidenced by documentation of the applicant's past performance in
economic development projects.
(B)
In order for an applicant to be eligible for financial assistance
under section 122.24 of the Revised Code, both of the following
apply:
(1)
The governing body of the entity that has been designated as an
eligible area by the director of
housing
and
development
under division (A) of section 122.25 of the Revised Code, by
resolution or ordinance, shall designate the applicant that will
carry out the project for the purposes described in section 122.24 of
the Revised Code and specify the eligible area's financial
participation in the project.
(2)
The board of county commissioners of a county that has been
designated as an eligible area by the director of
housing
and
development
under division (A)(1) of section 122.25 of the Revised Code shall
certify, by resolution, that no existing industrial park is located
in the county that would compete against an industrial park that
would be developed and improved in the county through the use of
financial assistance provided to the applicant under the rural
industrial park loan program. Guidelines regarding situations in
which industrial parks would be considered to compete against one
another shall be established by rule in accordance with division
(A)(8)(d) of section 122.25 of the Revised Code. However, an existing
industrial park owner's consent to the new industrial park is
sufficient to demonstrate noncompetition.
(C)
Solely for the purpose of applying for assistance for infrastructure
improvements, a governing body may designate itself as an eligible
applicant.
Sec.
122.29.
(A)
The Ohio river commission is created within the department of
housing
and
development
to develop and promote economic development, marine cargo terminal
operations, and travel and tourism on the Ohio river and its
tributaries. The commission consists of the following members:
(1)
The director of
housing
and
development,
or the director's designee, who shall serve as chairperson of the
commission;
(2)
The director of transportation, or the director's designee;
(3)
The director of natural resources, or the director's designee;
(4)
Six members representing the general public, three of whom shall be
appointed by the president of the senate and three of whom shall be
appointed by the speaker of the house of representatives.
The
appointed members may represent private industry associated or
affiliated with marine cargo terminal operations on the Ohio river
and private industry possessing experience in marine cargo terminal
operations or travel and tourism on the Ohio river.
(B)(1)
Each appointed member of the commission shall be a resident of this
state or a designee of a business licensed or registered in this
state.
(2)
All members shall be reimbursed for actual expenses incurred in the
performance of their duties.
(C)(1)
Within sixty days after
the
effective date of this section
April
3, 2025
,
the speaker of the house of representatives and the senate president
shall make initial appointments to the commission.
(2)
Terms of office for appointed members shall be for four years.
(3)
Vacancies shall be filled in the manner provided for original
appointments.
(4)
Each term shall end on the same day of the same month as did the term
that it succeeds. Each appointed member shall hold office from the
date of the member's appointment until the end of the term for which
the member was appointed. Any member appointed to fill a vacancy
before the expiration of the term for which the member's predecessor
was appointed shall hold office for the remainder of that term. Any
appointed member shall continue in office subsequent to the
expiration date of the member's term until the member's successor
takes office, or for a period of sixty days, whichever occurs first.
All members are eligible for reappointment.
(D)
Five members of the commission constitute a quorum. The affirmative
vote of a majority of the quorum is necessary for any action taken by
the commission. No vacancy in the membership of the commission
impairs the rights of a quorum to exercise all the rights and perform
all the duties of the commission.
(E)
All members of the commission are subject to Chapter 102. of the
Revised Code.
(F)
The department of
housing and
development may assist the commission in furtherance of the
commission's purposes. The department of
housing
and
development
and the department of transportation, upon the request of the
commission, shall cooperate in the implementation of this section.
The department of
housing
and
development
shall provide meeting and office space for the commission.
(G)
Expenditures by the department of
housing
and
development,
the commission, or any other state agency for capital improvements to
promote economic development, marine cargo terminal operations, and
travel and tourism on the Ohio river and its tributaries are subject
to the approval of the controlling board.
Sec.
122.291.
(A)
The Ohio river commission may do all of the following, subject to
available funding through appropriations made directly by the general
assembly or the controlling board to the commission:
(1)
Employ an executive director who shall have appropriate experience as
determined by the commission, and a secretary-treasurer and other
employees that the commission considers appropriate. The commission
may fix the compensation of the employees.
(2)
Adopt and, from time to time, ratify, amend, and repeal bylaws
necessary and proper for the regulation of its affairs and the
conduct of its business and rules to implement and make effective its
powers and duties;
(3)
Receive, promote, support, and consider recommendations, from public
or private planning organizations, and develop a master plan for Ohio
river infrastructure and transportation projects;
(4)
Coordinate with port authorities, private port operators,
metropolitan planning organizations, regional transportation planning
organizations, local development districts, Ohio river service
entities, utility service providers, and agricultural, tourism, and
recreational interests, regarding Ohio river infrastructure and
transportation;
(5)
In conjunction with applicable state agencies, coordinate with state
agencies, local governments and communities, other states, and the
federal government regarding Ohio river issues;
(6)
Collect, track, and maintain key statistics and data regarding
commerce on the Ohio river and make an annual report to the general
assembly;
(7)
Ensure the monitoring of federal, state, and local policies,
programs, and priorities pertaining to the development and operation
of marine cargo terminals and travel and tourism on the Ohio river;
(8)
Prioritize policies, programs, and issues identified in the Ohio
maritime strategy prepared by the department of transportation and in
the department's "Economic Impact of the Ohio River Maritime
Activity" study, as those or similar documents or reports are
published and updated from time to time by the department;
(9)
Evaluate policies, programs, programs of research, and priorities to
offset the continued decline in coal production and consumption
within the Ohio river basin and promote prosperity in the Appalachian
region of this state;
(10)
Administer development funds and seek, support, and assist the Ohio
river industry in the utilization of available grants, loans, and
other finance mechanisms in support of Ohio river projects;
(11)
Represent the interests of this state in regional, national, and
international forums pertaining to economic development, marine cargo
terminals, and travel and tourism on the Ohio river and its
tributaries;
(12)
Coordinate, for dissemination and publication, information regarding
the commission and its related activities in connection with the Ohio
river;
(13)
Raise funds through direct solicitation or other fundraising events
alone, or with other groups, and accept gifts, grants, and bequests
from individuals, corporations, foundations, governmental agencies,
and public and private organizations and institutions. The funds,
gifts, grants, or bequests received pursuant to this section shall be
deposited to the Ohio river commission fund created in section
122.292 of the Revised Code.
(B)
The commission, or the department of
housing
and
development,
on behalf of the commission, may apply for and receive from the
United States government grants in accordance with any federal law or
program, for the benefit of Ohio river infrastructure,
transportation, or recreation and tourism.
Sec.
122.30.
The
director of
housing
and
development
services
is
vested with the powers and duties provided in sections 122.28 and
122.30 to 122.36 of the Revised Code, to promote the welfare of the
people of the state through the interaction of the business and
industrial community and educational institutions in the development
of new technology and enterprise.
(A)
It is necessary for the state to establish the programs created
pursuant to sections 122.28 and 122.30 to 122.36 of the Revised Code
to accomplish the following purposes which are determined to be
essential:
(1)
Improve the existing industrial and agricultural base of the state;
(2)
Improve the economy of the state by providing employment, increasing
productivity, and slowing the rate of inflation;
(3)
Develop markets worldwide for the products of the state's natural
resources and agricultural and manufacturing industries;
(4)
Maintain a high standard of living for the people of the state.
(B)
The director shall do all of the following:
(1)
Receive applications for assistance under sections 122.28 and 122.30
to 122.36 of the Revised Code;
(2)
Make a determination whether to approve the application for
assistance;
(3)
Transmit determinations to approve assistance exceeding forty
thousand dollars to the controlling board, together with any
information the controlling board requires, for the board's review
and decision as to whether to approve the assistance;
(4)
Gather and disseminate information and conduct hearings, conferences,
seminars, investigations, and special studies on problems and
programs concerning industrial research and new technology and their
commercial applications in the state;
(5)
Establish an annual program to recognize the accomplishments and
contributions of individuals and organizations in the development of
industrial research and new technology in the state;
(6)
Stimulate both public and industrial awareness and interest in
industrial research and development of new technology primarily in
the areas of industrial processes, implementation, energy,
agribusiness, medical technology, avionics, and food processing;
(7)
Develop and implement comprehensive and coordinated policies,
programs, and procedures promoting industrial research and new
technology;
(8)
Propose appropriate legislation or executive actions to stimulate the
development of industrial research and new technology by enterprises
and individuals;
(9)
Encourage and facilitate contracts between industry, agriculture,
educational institutions, federal agencies, and state agencies, with
special emphasis on industrial research and new technology by small
businesses and agribusiness;
(10)
Participate with any state agency in developing specific programs and
goals to assist in the development of industrial research and new
technology and monitor performance;
(11)
Assist enterprises in obtaining alternative forms of governmental or
commercial financing for industrial research and new technology;
(12)
Assist enterprises or individuals in the implementation of new
programs and policies and the expansion of existing programs to
provide an atmosphere conducive to increased cooperation among and
participation by individuals, enterprises, and educational
institutions engaged in industrial research and the development of
new technology;
(13)
Advertise, prepare, print, and distribute books, maps, pamphlets, and
other information;
(14)
Include in the director's annual report to the governor and the
general assembly a report on the activities for the preceding
calendar year under sections 122.28 and 122.30 to 122.36 of the
Revised Code;
(15)
Approve the expenditure of money appropriated by the general assembly
for the purpose of sections 122.28 and 122.30 to 122.36 of the
Revised Code;
(16)
Identify and implement federal research and development programs
which would link Ohio's industrial base, research facilities, and
natural resources;
(17)
Employ and fix the compensation of technical and professional
personnel, who shall be in the unclassified civil service, and employ
other personnel, who shall be in the classified civil service, as
necessary to carry out the provisions of sections 122.28 and 122.30
to 122.36 of the Revised Code.
Sec.
122.31.
All
expenses and obligations incurred by the director of
housing
and
development
services
in
carrying out the director's powers and duties under sections 122.28
and 122.30 to 122.36 of the Revised Code, are payable from revenues
or other receipts or income from grants, gifts, contributions,
compensation, reimbursement, and funds established in accordance with
those sections or general revenue funds appropriated by the general
assembly for operating expenses of the director.
Sec.
122.32.
The
director of
housing
and
development
services
,
on behalf of the programs authorized pursuant to sections 122.28 and
122.30 to 122.36 of the Revised Code, may receive and accept grants,
gifts, and contributions of money, property, labor, and other things
of value to be held, used, and applied only for the purpose for which
the grants, gifts, and contributions are made, from individuals,
private and public corporations, from the United States or any agency
of the United States, and from any political subdivision of the
state. The director may agree to repay any contribution of money or
to return any property contributed or its value at times, in amounts,
and on terms and conditions excluding the payment of interest as the
director determines at the time the contribution is made. The
director may evidence the obligation by written contracts, subject to
section 122.31 of the Revised Code, provided that the director shall
not thereby incur indebtedness of or impose liability upon the state
or any political subdivision.
Sec.
122.33.
The
director of
housing
and
development
services
shall
administer the following programs:
(A)
The industrial technology and enterprise development grant program,
to provide capital to acquire, construct, enlarge, improve, or equip
and to sell, lease, exchange, and otherwise dispose of property,
structures, equipment, and facilities within the state.
Such
funding may be made to enterprises that propose to develop new
products or technologies when the director finds all of the following
factors to be present:
(1)
The undertaking will benefit the people of the state by creating or
preserving jobs and employment opportunities or improving the
economic welfare of the people of the state, and promoting the
development of new technology.
(2)
There is reasonable assurance that the potential royalties to be
derived from the sale of the product or process described in the
proposal will be sufficient to repay the funding pursuant to sections
122.28 and 122.30 to 122.36 of the Revised Code and that, in making
the agreement, as it relates to patents, copyrights, and other
ownership rights, there is reasonable assurance that the resulting
new technology will be utilized to the maximum extent possible in
facilities located in Ohio.
(3)
The technology and research to be undertaken will allow enterprises
to compete more effectively in the marketplace. Grants of capital may
be in such form and conditioned upon such terms as the director deems
appropriate.
(B)
The industrial technology and enterprise resources program to provide
for the collection, dissemination, and exchange of information
regarding equipment, facilities, and business planning consultation
resources available in business, industry, and educational
institutions and to establish methods by which small businesses may
use available facilities and resources. The methods may include, but
need not be limited to, leases reimbursing the educational
institutions for their actual costs incurred in maintaining the
facilities and agreements assigning royalties from development of
successful products or processes through the use of the facilities
and resources. The director shall operate this program in conjunction
with the board of regents.
(C)
The Thomas Alva Edison grant program to provide grants to foster
research, development, or technology transfer efforts involving
enterprises and educational institutions that will lead to the
creation of jobs.
(1)
Grants may be made to a nonprofit organization or a public or private
educational institution, department, college, institute, faculty
member, or other administrative subdivision or related entity of an
educational institution when the director finds that the undertaking
will benefit the people of the state by supporting research in
advanced technology areas likely to improve the economic welfare of
the people of the state through promoting the development of new
commercial technology.
(2)
Grants may be made in a form and conditioned upon terms as the
director considers appropriate.
(3)
Grants made under this program shall in all instances be in
conjunction with a contribution to the project by a cooperating
enterprise which maintains or proposes to maintain a relevant
research, development, or manufacturing facility in the state, by a
nonprofit organization, or by an educational institution or related
entity; however, funding provided by an educational institution or
related entity shall not be from general revenue funds appropriated
by the Ohio general assembly. No grant made under this program shall
exceed the contribution made by the cooperating enterprise, nonprofit
organization, or educational institution or related entity. The
director may consider cooperating contributions in the form of state
of the art new equipment or in other forms provided the director
determines that the contribution is essential to the successful
implementation of the project. The director may adopt rules or
guidelines for the valuation of contributions of equipment or other
property.
(4)
The director may determine fields of research from which grant
applications will be accepted under this program.
Sec.
122.35.
All
moneys received under sections 122.28 and 122.30 to 122.36 of the
Revised Code are trust funds to be held and applied solely as
provided in those sections and section 166.03 of the Revised Code.
All moneys, except when deposited with the treasurer of the state,
shall be kept and secured in depositories as selected by the director
of
housing
and
development
services
in
the manner provided in sections 135.01 to 135.21 of the Revised Code,
insofar as those sections are applicable. All moneys held by the
director in trust to carry out the purposes of sections 122.28 and
122.30 to 122.36 of the Revised Code shall be used as provided in
sections 122.28 and 122.30 to 122.36 of the Revised Code and at no
time be part of other public funds.
Sec.
122.36.
Any
materials or data submitted to, made available to, or received by the
director of
housing
and
development
services
or
the controlling board, to the extent that the material or data
consist of trade secrets, as defined in section 1333.61 of the
Revised Code, or commercial or financial information, regarding
projects are not public records for the purposes of section 149.43 of
the Revised Code.
Sec.
122.37.
(A)
There is hereby created in the
department
of housing and
development
services
agency
the
steel futures program, for the purpose of preserving and improving
the existing industrial base of the state, improving the economy of
the state by providing employment, increased productivity, and
ensuring continued technological development consistent with these
goals, and maintaining a high standard of living for the people of
this state. The steel futures program may be supplemental to any
other enterprise assistance program administered by the director of
housing
and
development
services
,
and shall be administered so as to provide financial and technical
assistance to increase the competitiveness of existing steel and
steel-related industries in this state, and to encourage
establishment and development of new industries of this type within
the state.
The
director shall develop a strategy for financial and technical
assistance to steel and steel-related industries in the state, which
shall include investment policies with regard to these industries.
(B)
In administering the program, the director may consult with
appropriate representatives of steel and steel-related industries,
appropriate representatives of any union that represents workers in
these industries, and other persons with expert knowledge in these
industries.
(C)
The director of
housing
and
development
services
shall
consult with the chairperson of the public utilities commission to
foster development of public and private cooperative efforts that
result in energy savings and reduced energy costs for steel and
steel-related industries.
(D)
Assistance may be made available to steel and steel-related
industries undertaking projects the director determines to have
long-term implications for and broad applicability to the economy of
this state when the director finds:
(1)
The undertaking of projects by the industries will benefit the people
of the state by creating or preserving jobs and employment
opportunities or improving the economic welfare of the people of this
state, and promoting development of new technology or improving
application of existing steel and steel-related technology.
(2)
The undertaking of projects by the industries will allow them to
compete more effectively in the marketplace.
(E)
Projects eligible to receive assistance under the steel futures
program may include, but are not limited to, the following areas:
(1)
Research and development specifically related to steel and
steel-related industries and feasibility studies for business
development within these industries;
(2)
Employee training;
(3)
Labor and management relations; and
(4)
Technology-driven capital investment.
(F)
Financial and technical assistance may be in the form and conditioned
upon terms as the director considers appropriate.
(G)
No later than the first day of August of each year, the director
shall submit a report to the general assembly describing projects of
the steel futures program, results obtained from completed projects
of the program, and program projects for the next fiscal year.
Sec.
122.38.
(A)
As used in this section:
(1)
"Small business enterprise" means any person with a
principal place of business or research in the state, who meets the
definition of a "small business concern" as defined in 13
C.F.R. 121.7 (a), as amended.
(2)
"Eligible educational institution" means any educational
institution that disseminates information, conducts educational or
technical seminars and meetings, or provides other services of value
or interest to small business enterprises.
(3)
"Eligible organization" means any organization,
representing the interest of small business enterprises or areas of
technological research, that disseminates information, conducts
educational or technical seminars and meetings, or provides other
services of value or interest to small business enterprises.
(B)
There is hereby created in the department of
housing
and
development
the small business innovation research grant program for the purpose
of providing educational, technical, and financial assistance to:
(1)
Any small business enterprise engaging in or intending to engage in
technological research that the director of
housing
and
development
determines to be innovative and in the broad and long-term interest
of the economy of the state;
(2)
Any eligible educational institution;
(3)
Any eligible organization.
(C)
The director may provide educational, technical, and financial
assistance to small business enterprises, eligible educational
institutions, and eligible organizations. Any assistance shall be in
the form and conditioned upon terms the director considers
appropriate.
(D)
The director shall:
(1)
Establish the procedures by which small business enterprises,
eligible educational institutions, and eligible organizations may
apply for assistance under this section;
(2)
Collect, prepare, and disseminate information, describing the types
of assistance offered under the program and describing revelant
federal programs and services to small business enterprises, eligible
educational institutions, and eligible organizations as the director
considers appropriate;
(3)
Adopt rules for the administration of this section, in accordance
with Chapter 119. of the Revised Code.
Sec.
122.401.
There
is hereby established the Ohio residential broadband expansion grant
program within the
department
of housing and
development
services agency
.
The
agency
department
shall
administer and provide staff assistance for the program. The
agency
department
shall
be responsible for receiving and reviewing applications for program
grants and for sending completed applications to the broadband
expansion program authority for final review and award of program
grants.
Sec.
122.403.
(A)(1)
There is hereby created, within the department of
housing
and
development,
the broadband expansion program authority, which shall consist of the
director of
housing
and
development
or the director's designee, the director of the office of
InnovateOhio or the director's designee, and three other members as
follows: one member appointed by the president of the senate, one
member appointed by the speaker of the house of representatives, and
one member appointed by the governor.
(2)
Appointed members shall have expertise in broadband infrastructure
and technology. Appointed members may not be affiliated with or
employed by the broadband industry or in a position to benefit from a
program grant.
(B)
Appointed members shall serve four year terms and are eligible for
reappointment.
(C)
Vacancies shall be filled in the same manner as provided for original
appointments. Any member appointed to fill a vacancy occurring prior
to the expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of that term.
(D)(1)(a)
Beginning on January 1, 2022, and ending on December 31, 2025,
appointed members shall receive a monthly stipend as calculated under
section 145.016 of the Revised Code in an amount that will qualify
each member for one year of retirement service credit under the Ohio
public employees retirement system for each year of service as a
member of the authority during that period.
(b)
Notwithstanding the requirement of section 145.58 of the Revised Code
that eligibility for health care coverage provided under that section
be based on years and types of service credit in accordance with
rules adopted by the public employees retirement board, if the board
provides health care coverage under that section, no service credit
earned for service as a member of the authority shall be considered
for purposes of determining eligibility for coverage under that
section.
(c)
Members shall receive reimbursement for their necessary and actual
expenses incurred in performing the business of the authority. The
reimbursements constitute, as applicable, administrative costs of the
Ohio residential broadband expansion grant program.
(2)
An appointed member of the authority who is currently serving as an
administrative department head under section 121.03 of the Revised
Code is not eligible to receive a stipend under division (A) of this
section.
(3)
The
agency
department
of housing and development
shall
be responsible for paying all reimbursements for meals and expenses
under this section and, for the period beginning on January 1, 2022,
and ending on December 31, 2025, all stipends under this section.
(E)
The director of
housing
and
development,
or the director's designee, shall serve as chairperson of the
authority. The members of the authority annually shall elect a
vice-chairperson from the members of the authority. Three members of
the authority constitute a quorum to transact and vote on the
business of the authority. An affirmative vote of three members is
necessary to approve any business, including the election of the
vice-chairperson.
(F)
The assignment of designees by the director of
housing
and
development
and the director of InnovateOhio shall be made in writing. If the
director of
housing
and
development
assigns a designee to serve on the authority, the director shall
appoint a professional employee of the department of
housing
and
development
to serve as the director's designee at authority meetings. In the
absence of the director of
housing
and
development
or the director's designee, the vice-chairperson of the authority
shall serve as chairperson of authority meetings.
(G)
The authority is not an agency for purposes of sections 101.82 to
101.87 of the Revised Code.
Sec.
122.406.
The
broadband expansion program authority shall consider each application
for a program grant that the
department
of housing and
development
services
agency
has
reviewed and sent to it. The authority shall score all applications
according to the scoring system established under section 122.4040 of
the Revised Code and award program grants based on that system
according to sections 122.4043 and 122.4044 of the Revised Code.
Sec.
122.4017.
(A)
The broadband expansion program authority shall award program grants
under the Ohio residential broadband expansion grant program using
funds from the Ohio residential broadband expansion grant program
fund created in section 122.4037 of the Revised Code and other funds
appropriated by the general assembly.
(B)
If an appropriation for the program includes funds that are not state
funds or if the director of
housing
and
development
receives funds that are in the form of a gift, grant, or contribution
to the broadband expansion grant program fund, the broadband
expansion program authority shall award those funds as described in
sections 122.40 to 122.4077 of the Revised Code, except as provided
in division (C) of this section.
(C)
If the use of the funds described in division (B) of this section is
contingent upon meeting application, scoring, or other requirements
that are different from program requirements under sections 122.40 to
122.4077 of the Revised Code, the department of
housing
and
development
shall adopt the requirements and publish a description of the
different requirements with the program application as required under
section 122.4040 of the Revised Code.
Sec.
122.4018.
(A)
Each fiscal year, the
department
of housing and
development
services
agency
shall
fund program grants until funds for that fiscal year are no longer
available.
(B)
Any application pending at the end of the fiscal year shall be deemed
denied, but may be refiled in a subsequent fiscal year provided that
all information in the application is still current or has been
updated.
Sec.
122.4019.
(A)(1)
Each fiscal year, the department of
housing
and
development
shall accept applications for program grants.
(2)
To apply for a program grant, a broadband provider shall submit an
application to the department on a form prescribed by the department
and shall provide the information required under section 122.4020 of
the Revised Code. The form shall include a statement informing the
applicant that failure to comply with the program or to meet the
required tier two broadband service proposed in the application may
require the refund of all or a portion of the program grant awarded
for the project.
(3)
Applications may be submitted in person or by certified mail or
electronic mail, or uploaded to a designated department web site for
applications.
(B)
Applications shall be accepted during a submission period specified
by the broadband expansion program authority. Each submission period
shall be at least sixty but not more than ninety days. Each fiscal
year there shall be not more than two submission periods.
(C)
The department shall publish information from submitted applications
on the department's web site as follows:
(1)
Not later than five days after the close of the submission period in
which the application is made, the department shall publish, for each
completed application, the list of eligible addresses included with
the completed applications under division (A)(1)(a) of section
122.4020 of the Revised Code.
(2)
Not later than thirty-five days after the close of the submission
period in which the application is made, the department shall publish
all information from each completed application that it determines is
not confidential under section 122.4023 of the Revised Code.
(D)
If an application is incomplete, the department shall notify the
broadband provider that submitted the application. The notification
shall list what information is incomplete and shall describe the
procedure for refiling a completed application.
(E)
The department shall review an application determined incomplete
under division (D) of this section as provided in sections 122.4019
to 122.4036 of the Revised Code if the application is completed and
refiled:
(1)
Before the end of the submission period described under division (B)
of this section; or
(2)
Not later than fourteen days after the end of the submission period
described under division (B) of this section, if the department, for
good cause shown, has granted the broadband provider an extension
period of not more than fourteen days in which to file the completed
application.
(F)
The department shall deny an incomplete application if the broadband
provider fails to complete and refile it within the applicable
submission period or extension period. Applications that are denied
shall not be published on the department's web site.
(G)
To facilitate the challenge process, after publication of all
applications, the department shall publish a provisional scoring for
applications based on the scoring criteria in section 122.4041 of the
Revised Code. The department shall publish the provisional scoring on
its web site not later than fifteen business days after all
applications have been accepted as complete under this section. The
authority shall neither vote on, nor make awards based on, the
provisional scoring.
Sec.
122.4020.
(A)
An application for a program grant under the Ohio residential
broadband expansion grant program shall include, at a minimum, the
following information for an eligible project:
(1)
The location and description of the project, including:
(a)
The residential addresses in the unserved or tier one areas where
tier two broadband service will be available following completion of
the project;
(b)
A notarized letter of intent that the broadband provider will provide
access to tier two broadband service to all of the residential
addresses listed in the project;
(c)
A notarized letter of intent by the broadband provider that none of
the funds provided by the program grant will be used to extend or
deploy facilities to any residential addresses other than those in
the unserved or tier one areas that are part of the project.
(2)
The amount of the broadband funding gap and the amount of state funds
requested;
(3)
The amount of any financial or in-kind contributions to be used
towards the broadband funding gap and identification of the
contribution sources, which may include, but are not limited to, any
combination of the following:
(a)
Funds that the broadband provider is willing to contribute to the
broadband funding gap;
(b)
Funds received or approved under any other federal or state
government grant or loan program;
(c)
General revenue funds of a municipal corporation, township, or county
comprising the area of the eligible project;
(d)
Other discretionary funds of the municipal corporation, township, or
county comprising the area of the eligible project;
(e)
Any alternate payment terms that the broadband provider and any
legislative authority in which the project is located have negotiated
and agreed to pursuant to section 122.4025 of the Revised Code;
(f)
Contributions or grants from individuals, organizations, or
companies;
(g)
Property tax assessments made by the municipal corporation under
Chapter 727. of the Revised Code, township under section 505.881 of
the Revised Code, or county under section 303.251 of the Revised
Code.
(4)
The source and amount of any financial or in-kind contributions
received or approved for any part of the overall eligible project
cost, but not applied to the broadband funding gap;
(5)
A description of, or documentation demonstrating, the broadband
provider's managerial and technical expertise and experience with
broadband service projects;
(6)
Whether the broadband provider plans to use wired, wireless, or
satellite technology to complete the project;
(7)
A description of the scalability of the project;
(8)
The megabit-per-second broadband download and upload speeds planned
for the project;
(9)
A description of the broadband provider's customer service
capabilities, including any locally based call centers or customer
service offices;
(10)
A copy of the broadband provider's general customer service policies,
including any policy to credit customers for service outages or the
provider's failure to keep scheduled appointments for service;
(11)
The length of time that the broadband provider has been operating in
the state;
(12)
Proof that the broadband provider has the financial stability to
complete the project;
(13)
A projected construction timetable, including the anticipated date of
the provision of tier two broadband service access within the
project;
(14)
A description of anticipated or preliminary government
authorizations, permits, and other approvals required in connection
with the project, and an estimated timetable for the acquisition of
such approvals;
(15)
A notification from the broadband provider informing the department
of
housing
and
development
of any information contained in the application, or within related
documents submitted with it, that the provider considers proprietary
or a trade secret;
(16)
A notarized statement that the broadband provider accepts the
condition that noncompliance with Ohio residential broadband
expansion grant program requirements may require the provider to
refund all or part of any program grant the provider receives;
(17)
A brief description of any arrangements, including any subleases of
infrastructure or joint ownership arrangements that the broadband
provider that submitted the application has entered into, or plans to
enter into, with another broadband provider, an electric cooperative,
or an electric distribution utility, to enable the offering of tier
two broadband service under the project;
(18)
Other relevant information that the department determines is
necessary and prescribes by rule;
(19)
Any other information the broadband provider considers necessary.
(B)
To meet the requirement to provide proof of financial responsibility
in the application, the broadband provider may submit publicly
available financial statements with its application.
Sec.
122.4023.
Pursuant
to rules adopted under section 122.4077 of the Revised Code, the
department
of housing and
development
services
agency
shall
evaluate the information and documents submitted by a broadband
provider in an application under section 122.4013 of the Revised Code
or by a challenging provider under section 122.4030 of the Revised
Code. The evaluation shall determine whether the information and
documents are proprietary or constitute a trade secret. Upon receipt
of the information and documents, the
agency
department
shall
keep them confidential and shall not publish them on the
agency's
department's
web
site, unless the
agency
department
finds
that any information or document is not proprietary or a trade
secret. Any information or document found not to be proprietary or a
trade secret under this section shall not be considered confidential
and shall be published on the
agency
department
web
site as is required for an application under division (C)(2) of
section 122.4019 of the Revised Code.
Sec.
122.4024.
The
department
of housing and
development
services
agency
shall
establish an automatic notification process through which interested
parties may receive electronic mail notifications when the
agency
department
publishes
application and other information on its web site pursuant to
sections 122.40 to 122.4077 of the Revised Code.
Sec.
122.4030.
(A)
As used in section 122.4023 and sections 122.4030 to 122.4035 of the
Revised Code, "challenging provider" means either of the
following:
(1)
A broadband provider that provides tier two broadband service within
or directly adjacent to an eligible project;
(2)
A municipal electric utility that provides tier two broadband service
to an area within the eligible project that is within the geographic
area served by the municipal electric utility.
(B)(1)(a)
A challenging provider may challenge, in writing, all or part of a
completed application for a program grant for the project not later
than sixty-five days after the provisional application scoring has
been published on the web site as required under section 122.4019 of
the Revised Code.
(b)
The department of
housing
and
development,
for good cause shown, may grant the broadband provider an extension
of not more than fourteen days in which to submit a challenge.
(2)
The challenging provider shall provide its complete challenge to the
department, by electronic mail or such other means as may be
established by the department. Within ten business days of its
receipt of a challenge, the department shall provide, by electronic
mail or such other means as may be established by the department, a
complete copy of such challenge to the applicant whose application is
the subject of a challenge.
(C)
No challenge to an application may be accepted before the completed
application is published in its entirety on the department's web site
pursuant to division (C)(2) of section 122.4019 of the Revised Code.
Sec.
122.4031.
(A)
To successfully challenge an application, a challenging provider
shall provide sufficient evidence to the department of
housing
and
development
demonstrating that all or part of a project under the application is
ineligible for a grant. The challenge shall, at minimum, include the
following information:
(1)
Sufficient evidence disputing the notarized letter of intent
submitted with the application that the eligible project contains
eligible addresses;
(2)
Sufficient evidence attesting to the challenging provider's existing
or planned offering of tier two broadband service to all or part of
the eligible project, which evidence shall include the following:
(a)
With regard to existing tier two broadband service, a signed,
notarized statement submitted by the challenging provider that
sufficiently identifies the part of the eligible project to which the
challenging provider offers broadband service and the aggregate
number of eligible addresses to which the challenging provider offers
tier two broadband service;
(b)
With regard to the planned provision of tier two broadband service by
a challenging provider as described in division (B) of section
122.4016 of the Revised Code, both of the following:
(i)
A signed, notarized statement submitted by the challenging provider
that sufficiently identifies the part of the eligible project to
which the challenging provider will offer tier two broadband service;
(ii)
A summary of the construction efforts that includes the dates when
tier two broadband construction is expected to be completed and when
tier two broadband service will first be offered to the part of the
eligible project being challenged.
(B)
To demonstrate that all or part of a project under the application is
ineligible for a grant, a challenging provider shall present
shapefile data and residential addresses identifying each challenged
residential address and the basis for such challenge. Census block or
census tract level data shall not be acceptable as evidence of
ineligibility of all or part of a project.
(C)
The department shall reject any challenge regarding a residential
address where the provision of tier two broadband service is planned
to be provided if the challenging provider has also submitted an
application for funding for the same residential address.
Sec.
122.4032.
If
an application filed during an application submission period
established by the department of
housing
and
development
under section 122.4019 of the Revised Code is not challenged pursuant
to sections 122.4030 to 122.4035 of the Revised Code, the lack of a
challenge does not do either of the following:
(A)
Create a presumption that residential addresses included in an
application submitted in a subsequent submission period are eligible
addresses under the Ohio residential broadband expansion grant
program;
(B)
Prohibit a challenging provider from filing a challenge to an
application that is being refiled during a subsequent submission
period.
Sec.
122.4033.
(A)
Not later than thirty days after receipt of a challenge under
sections 122.4030 to 122.4035 of the Revised Code, the broadband
expansion program authority may do either of the following:
(1)
Suspend, subject to division (B) of this section, all or part of the
application;
(2)
Reject the challenge, approve the application, and proceed with the
application process.
(B)
The authority shall allow the broadband provider that submitted the
application being challenged to revise the application consistent
with sections 122.40 to 122.4077 of the Revised Code, if the
authority upholds a challenge to all or part of the application.
(C)
The authority shall notify both the broadband provider that submitted
the application and the challenging provider of any decision made
under this section by providing a copy of the decision by certified
mail or electronic mail. The authority shall update the status of the
application on the
department
of housing and
development
services
agency
web
site.
Sec.
122.4034.
(A)
If the broadband expansion program authority suspends all or part of
an application, the broadband provider that submitted the application
may revise and resubmit the application not later than fourteen days
after receiving the suspension notification sent by the authority
pursuant to section 122.4033 of the Revised Code. The broadband
provider may request, and the authority may grant for good cause
shown, an extension period of not more than fourteen days in which
the broadband provider may resubmit the application.
(B)
When revising the application, the broadband provider shall not
expand the scope or impact of the original application, nor shall the
provider add any new residential addresses to the eligible project.
(C)
The broadband provider shall provide a copy of the revised
application to the authority by electronic mail or by uploading it to
the department of
housing
and
development's
designated web site for applications. The department shall publish
the revised application on the department's public web site and
provide the application to the challenging provider by electronic
mail or such other means as may be established by the department,
provided that any information determined to be proprietary or a trade
secret under section 122.4023 of the Revised Code is redacted.
(D)
Any failure to respond to the notification or properly revise the
application to the authority's satisfaction shall be considered a
withdrawal of the application.
Sec.
122.4035.
Upon
receipt of a revised application under section 122.4034 of the
Revised Code, the broadband expansion program authority shall review
the revised application and decide whether to accept it or uphold the
challenge under sections 122.4030 to 122.4035 of the Revised Code
within fourteen days. The authority shall provide a copy of its
decision to both the broadband provider that submitted the revised
application and the challenging provider by certified mail or
electronic mail and shall update the status of the application on the
development
services agency's
department
of housing and development's
web
site. The decision shall be considered final, and further challenges
to the revised application are prohibited.
Sec.
122.4036.
If
the broadband expansion program authority upholds a challenge to an
application under sections 122.4030 to 122.4035 of the Revised Code
and the challenging provider fails to provide tier two broadband
service as described in the challenge, the challenging provider,
after a reasonable opportunity to be heard, may be required to do
either or both of the following, in addition to being subject to
other remedies available under the law:
(A)
Pay to the
department
of housing and
development
services
agency
the
amount of the original broadband funding gap described in section
122.4020 of the Revised Code for the application that was challenged;
(B)
Comply with the requirements of any other penalties prescribed by
agency
department
rule
and imposed after consultation with the authority.
Sec.
122.4037.
Any
gift, grant, and contribution received by the director of
housing
and
development
for the Ohio residential broadband expansion grant program and any
money collected under section 122.4036 of the Revised Code shall be
deposited into the Ohio residential broadband expansion grant program
fund, which is hereby created in the state treasury. All amounts in
the fund, including interest earned on those amounts, shall be used
by the department of
housing
and
development
exclusively for grants under sections 122.40 to 122.4077 of the
Revised Code.
Sec.
122.4040.
The
department of
housing
and
development,
in consultation with the broadband expansion program authority, shall
establish a scoring system to evaluate and select applications for
program grants. The scoring system shall be available on the
department's web site at least thirty days before the beginning of
the application submission period set by the department by rule. A
description of any differences in application, scoring system, or
other program requirements adopted under division (C) of section
122.4017 of the Revised Code shall be available with the application
on the department's web site at least thirty days before the
beginning of the application submission period.
Sec.
122.4043.
(A)
The broadband expansion program authority shall award program grants
under the Ohio residential broadband expansion grant program after
reviewing applications sent to the authority by the
department
of housing and
development
services agency
.
Awards shall be granted after the authority scores applications based
on the scoring system under sections 122.4040 and 122.4041 of the
Revised Code.
(B)
In awarding program grants, the authority shall consider all
regulatory obligations under applicable law. The authority may not
consider any of the following:
(1)
Proposed project conditions that require open access networks or that
establish a specific rate, service, or other obligation not specified
for the Ohio residential broadband expansion grant program;
(2)
Factors that would constrain a broadband provider that receives a
grant from offering or providing tier two broadband service in the
same manner as the service is offered by broadband providers in other
areas of the state without funding from the Ohio residential
broadband expansion grant program.
(C)
Upon making the program grant awards, the authority shall notify the
broadband providers that submitted applications of the award
decisions. The authority shall publish the program grant awards on
the
agency's
department's
web
site.
Sec.
122.4044.
After
the broadband expansion program authority awards a program grant
under section 122.4043 of the Revised Code, the
department
of housing and
development
services
agency
shall
disburse the program grant as follows:
(A)
A portion of the program grant, not to exceed thirty per cent, shall
be disbursed before construction of the project begins.
(B)
A portion of the program grant, not to exceed sixty per cent, shall
be disbursed through periodic payments over the course of
construction of the eligible project as determined by the
agency
department
by
rules adopted under section 122.4077 of the Revised Code.
(C)
The remaining portion shall be disbursed not later than sixty days
after the broadband provider notifies the authority that it has
completed construction of the project.
Sec.
122.4045.
(A)
The department of
housing
and
development
may, through an independent third party, conduct speed verification
tests of an eligible project that receives a program grant. Such
tests shall occur as follows:
(1)
After the construction is complete, but prior to the final
disbursement made under division (C) of section 122.4044 of the
Revised Code to verify that tier two broadband service is being
offered;
(2)
At any time during the reporting period required under division (B)
of section 122.4070 of the Revised Code, after receiving a complaint
concerning a residential address that is part of the eligible
project.
(B)
To evaluate compliance with tier two broadband service standards,
speed verification tests conducted under this section shall be
conducted on at least two different days and at two different times
on each of those days.
(C)
The
agency
department
may
withhold payments under this section for failure to meet at least the
minimum speeds required under division (A)(8) of section 122.4020 of
the Revised Code. Payments may be held until such speeds are
achieved.
Sec.
122.4046.
(A)
If the
department
of housing and
development
services
agency
determines
that a broadband provider that has been awarded a program grant under
the Ohio residential broadband expansion grant program has not
complied with the requirements of the program, the
agency
department
shall
notify the provider of the noncompliance. In accordance with rules
adopted by the
agency
department
under
section 122.4077 of the Revised Code, the
agency
department
shall
give the provider an opportunity to explain or cure the
noncompliance.
(B)
After reviewing the broadband provider's explanation or effort to
cure the noncompliance, the following shall apply:
(1)
The
agency
department
may
require the provider to refund an amount equal to all, or a portion
of, the amount of the program grant awarded to the provider, as
determined by the
agency
department
.
(2)
The
agency
department
may
require the broadband provider to refund to the appropriate municipal
corporation, township, or county the entire amount of general revenue
funds or other discretionary funds that it contributed toward the
broadband funding gap under division (A)(3)(c) or (d) of section
122.4020 of the Revised Code.
(C)
Not more than thirty days after the
agency's
department's
decision
requiring a refund for program noncompliance or a failure to explain
or cure it, the broadband provider shall pay the refund required
under division (B) of this section. Payments shall be made directly
to the municipal corporation, township, or county that contributed
funds toward the broadband funding gap.
Sec.
122.4050.
Upon
adoption of a resolution, a board of county commissioners may request
the
department
of housing and
development
services
agency
to
solicit applications from broadband providers for program grants
under the Ohio residential broadband expansion grant program for
eligible projects in the municipal corporations and townships of the
county.
A
request made by a county shall identify, to the extent possible, the
residential addresses in unserved or tier one areas of the county and
provide a point of contact at the county and the municipal
corporations and townships in which the addresses are located. The
request may include any relevant information, documents, or materials
that may be helpful for an application.
Sec.
122.4051.
Upon
receipt of a request from a board of county commissioners pursuant to
section 122.4050 of the Revised Code, the
department
of housing and
development
services
agency
shall
solicit, on behalf of the county, applications for program grants for
eligible projects under the Ohio residential broadband expansion
grant program. Not later than seven days after receipt of the
request, the
agency
department
shall
make the request, and any accompanying information submitted with the
request, available for review on the
agency's
department's
web
site. The request shall remain available on the web site for a period
not to exceed two years.
Sec.
122.4055.
The
department
of housing and
development
services
agency
shall
not be responsible for any failure by a broadband provider to respond
to a request made by the
agency
department
pursuant
to section 122.4051 of the Revised Code or to submit an application
for a program grant under the Ohio residential broadband expansion
grant program.
Sec.
122.4063.
(A)
Nothing in sections 122.40 to 122.4077 of the Revised Code entitles
the state of Ohio, the
department
of housing and
development
services agency
,
the broadband expansion program authority, or any other governmental
entity to any ownership or other rights to broadband infrastructure
constructed by a broadband provider pursuant to a program grant
awarded to an eligible project.
(B)
Nothing in sections 122.40 to 122.4077 of the Revised Code prevents
an assignment, sale, change in ownership, or other similar
transaction associated with broadband infrastructure constructed by a
broadband provider pursuant to a program grant awarded to an eligible
project. No assignment, sale, change in ownership, or other similar
transaction relieves the successor of any obligation under sections
122.40 to 122.4077 of the Revised Code.
Sec.
122.4070.
(A)
Each broadband provider that receives a program grant shall submit to
the
department
of housing and
development
services
agency
an
annual progress report on the status of the deployment of the
broadband network described in the eligible project for which the
program grant award was made.
(B)
The broadband provider shall submit an operational report with the
agency
department
not
later than sixty days after the completion of the project and
annually thereafter for a period of four years.
Sec.
122.4071.
(A)
The reports required under section 122.4070 of the Revised Code and
except as provided in section 122.4075 of the Revised Code, all
information and documents in them shall be in a format specified by
the department of
housing
and
development
and shall be publicly available on the department's web site.
(B)
In each report, the broadband provider shall include an account of
how program grant funds have been used and the project's progress
toward fulfilling the objectives for which the program grant was
awarded. The reports, at a minimum, shall include the following:
(1)
The number of residential addresses that have access to tier two
broadband services as a result of the eligible project;
(2)
The number of residential addresses that are not funded directly by
the grant program but have access to tier two broadband service as a
result of the eligible project;
(3)
The upstream and downstream speed of the broadband service provided;
(4)
The average price of broadband service;
(5)
The number of broadband service subscriptions attributable to the
program grant.
Sec.
122.4073.
The
department
of housing and
development
services
agency
may
set a due date for the reports required under section 122.4070 of the
Revised Code and, for good cause shown, may grant extensions of the
report due dates.
Sec.
122.4075.
Reports
required under section 122.4070 of the Revised Code, and all
information and documents in them, shall be maintained on a
confidential basis by the
department
of housing and
development
services
agency
and
shall not be published on the
agency's
department's
web
site until the
agency
department
determines
what information or documents are not confidential pursuant to
section 122.4023 of the Revised Code.
Sec.
122.4076.
(A)
The broadband expansion program authority shall complete an annual
report for the Ohio residential broadband expansion grant program.
The report shall evaluate the success of the program grants awarded
under section 122.4043 of the Revised Code in making tier two
broadband services available to unserved and tier one areas. The
report shall include the following information:
(1)
The number of applications received;
(2)
The number of applications that received program grants;
(3)
The amount of broadband infrastructure constructed for eligible
projects;
(4)
The number of residential addresses receiving, for that year, tier
two broadband service for the first time under the program;
(5)
Findings and recommendations that have been agreed to by a majority
of the authority members.
(B)
The report shall be published on the department of
housing
and
development's
web site and shall be included as part of the department's annual
report filed under section 121.18 of the Revised Code. The authority
shall present the report annually to the governor and the general
assembly not later than the first of December of each calendar year.
Sec.
122.4077.
(A)
The
department
of housing and
development
services
agency
shall
adopt rules for the Ohio residential broadband expansion grant
program. The rules shall establish an application form and
application procedures for the program and procedures for periodic
program grant disbursements.
(B)
The rules may include the following:
(1)
Requirements for a program application in addition to the
requirements described in section 122.4020 of the Revised Code;
(2)
Procedures for and circumstances under which partial funding of
applications is permitted;
(3)
Procedures for broadband expansion program authority meetings,
extension periods for applications and application challenges,
hearings, and opportunities for public comment.
(C)
The
agency
department
may
adopt rules and procedures to implement sections 122.4051, 122.4053,
and 122.4055 of the Revised Code.
(D)
Rules adopted under this section are not subject to section 121.95 of
the Revised Code.
(E)
The
agency
department
and
the authority are not subject to division (F) of section 121.95 of
the Revised Code regarding the development and adoption of rules
pursuant to this section.
Sec.
122.41.
The
director of
housing
and
development
services
is
invested with the powers and duties provided in Chapter 122. of the
Revised Code, in order to promote the welfare of the people of the
state, to stabilize the economy, to provide employment, to assist in
the development within the state of industrial, commercial,
distribution, and research activities required for the people of the
state, and for their gainful employment, or otherwise to create or
preserve jobs and employment opportunities, or improve the economic
welfare of the people of the state, and also to assist in the
financing of air, water, or thermal pollution control facilities and
solid waste disposal facilities by mortgage insurance as provided in
section 122.451 of the Revised Code. It is hereby determined that the
accomplishment of such purposes is essential so that the people of
the state may maintain their present high standards in comparison
with the people of other states and so that opportunities for
employment and for favorable markets for the products of the state's
natural resources, agriculture, and manufacturing shall be improved
and that it is necessary for the state to establish the programs
authorized pursuant to Chapter 122. of the Revised Code and invest
the director of
housing
and
development
services
with
the powers and duties provided in Chapter 122. of the Revised Code.
The powers granted to the director by Chapter 165. of the Revised
Code are independent of and in addition and alternate to, and are not
limited or restricted by, Chapter 122. of the Revised Code.
Sec.
122.42.
(A)
The director of
housing
and
development
shall do all of the following:
(1)
Receive applications for assistance under sections 122.39 and 122.41
to 122.62 of the Revised Code;
(2)
Make a final determination whether to approve the application for
assistance;
(3)
Transmit determinations to approve assistance to the controlling
board together with any information the controlling board requires
for the board's review and decision as to whether to approve the
assistance;
(4)
Issue revenue bonds of the state through the treasurer of state, as
necessary, payable solely from revenues and other sources as provided
in sections 122.39 and 122.41 to 122.62 of the Revised Code.
(B)
The director may do all of the following:
(1)
Fix the rate of interest and charges to be made upon or with respect
to moneys loaned by the director and the terms upon which mortgages
and lease rentals may be guaranteed and the rates of charges to be
made for the loans and guarantees and to make provisions for the
operation of the funds established by the director in accordance with
this section and sections 122.54, 122.55, 122.56, and 122.57 of the
Revised Code;
(2)
Loan moneys from the fund established in accordance with section
122.54 of the Revised Code pursuant to and in compliance with
sections 122.39 and 122.41 to 122.62 of the Revised Code;
(3)
Acquire in the name of the director any property of any kind or
character in accordance with sections 122.39 and 122.41 to 122.62 of
the Revised Code, by purchase, purchase at foreclosure, or exchange
on such terms and in such manner as the director considers proper;
(4)
Make and enter into all contracts and agreements necessary or
incidental to the performance of the director's duties and the
exercise of the director's powers under sections 122.39 and 122.41 to
122.62 of the Revised Code;
(5)
Maintain, protect, repair, improve, and insure any property which the
director has acquired and dispose of the same by sale, exchange, or
lease for the consideration and on the terms and in the manner as the
director considers proper, but is not authorized to operate any such
property as a business except as the lessor of the property;
(6)(a)
When the cost of any contract for the maintenance, protection,
repair, or improvement of any property held by the director other
than compensation for personal services involves an expenditure of
more than one thousand dollars, the director shall make a written
contract with the lowest responsive and responsible bidder in
accordance with section 9.312 of the Revised Code after advertisement
for not less than two consecutive weeks in a newspaper of general
circulation in the county where such contract, or some substantial
part of it, is to be performed, and in such other publications as the
director determines, which notice shall state the general character
of the work and the general character of the materials to be
furnished, the place where plans and specifications may be examined,
and the time and place of receiving bids.
(b)
Each bid for a contract for the construction, demolition, alteration,
repair, or reconstruction of an improvement shall contain the full
name of every person interested in it and meet the requirements of
section 153.54 of the Revised Code.
(c)
Each bid for a contract, except as provided in division (B)(6)(b) of
this section, shall contain the full name of every person interested
in it and shall be accompanied by bond or certified check on a
solvent bank, in such amount as the director considers sufficient,
that if the bid is accepted a contract will be entered into and the
performance of the proposal secured.
(d)
The director may reject any and all bids.
(e)
A bond with good and sufficient surety, approved by the director,
shall be required of every contractor awarded a contract except as
provided in division (B)(6)(b) of this section, in an amount equal to
at least fifty per cent of the contract price, conditioned upon
faithful performance of the contract.
(7)
Employ financial consultants, appraisers, consulting engineers,
superintendents, managers, construction and accounting experts,
attorneys, and other employees and agents as are necessary in the
director's judgment and fix their compensation;
(8)
Assist qualified persons in the coordination and formation of a small
business development company, having a statewide area of operation,
conditional upon the company's agreeing to seek to obtain
certification from the federal small business administration as a
certified statewide development company and participation in the
guaranteed loan program administered by the small business
administration pursuant to the Act of July 2, 1980, 94 Stat. 837, 15
U.S.C.A. 697. During the initial period of formation of the statewide
small business development company, the director shall provide
technical and financial expertise, legal and managerial assistance,
and other services as are necessary and proper to enable the company
to obtain and maintain federal certification and participation in the
federal guaranteed loan program. The director may charge a fee, in
such amount and on such terms and conditions as the director
determines necessary and proper, for assistance and services provided
pursuant to division (B)(8) of this section.
Persons
chosen by the director to receive assistance in the formation of a
statewide small business development company pursuant to division
(B)(8) of this section shall make a special effort to use their
participation in the federal guaranteed loan program to assist small
businesses which are minority business enterprises as defined in
division (E) of section 122.71 of the Revised Code. The director,
with the assistance of the minority business development division of
the department of
housing
and
development,
shall provide technical and financial expertise, legal and managerial
assistance, and other services in such a manner to enable the
development company to provide assistance to small businesses which
are minority business enterprises, and shall make available to the
development company information pertaining to assistance available to
minority business enterprises under programs established pursuant to
sections 122.71 to 122.83, 122.87 to 122.89, 122.92 to 122.94,
122.921, and 125.081 of the Revised Code.
(9)
Receive and accept grants, gifts, and contributions of money,
property, labor, and other things of value to be held, used, and
applied only for the purpose for which such grants, gifts, and
contributions are made, from individuals, private and public
corporations, from the United States or any agency of the United
States, from the state or any agency of the state, and from any
political subdivision of the state, and may agree to repay any
contribution of money or to return any property contributed or the
value of the property at such times, in such amounts, and on such
terms and conditions, excluding the payment of interest, as the
director determines at the time such contribution is made, and may
evidence such obligations by notes, bonds, or other written
instruments;
(10)
Establish with the treasurer of state the funds provided in sections
122.54, 122.55, 122.56, and 122.57 of the Revised Code, in addition
to such funds as the director determines are necessary or proper;
(11)
Do all acts and things necessary or proper to carry out the powers
expressly granted and the duties imposed in sections 122.39 and
122.41 to 122.62 and Chapter 163. of the Revised Code.
(C)
All expenses and obligations incurred by the director in carrying out
the director's powers and in exercising the director's duties under
sections 122.39 and 122.41 to 122.62 of the Revised Code, shall be
payable solely from the proceeds of revenue bonds issued pursuant to
those sections, from revenues or other receipts or income of the
director, from grants, gifts, and contributions, or funds established
in accordance with those sections. Those sections do not authorize
the director to incur indebtedness or to impose liability on the
state or any political subdivision of the state.
(D)
Financial statements and financial data submitted to the director by
any corporation, partnership, or person in connection with a loan
application, or any information taken from such statements or data
for any purpose, shall not be open to public inspection.
Sec.
122.43.
The
director of
housing
and
development
services
,
with controlling board approval, may lend funds which are obtained
from the sale of revenue bonds issued by the treasurer of state
pursuant to sections 122.39 and 122.41 to 122.62 of the Revised Code,
from revenues or other receipts or income of the director, or funds
established in accordance with sections 122.39 and 122.41 to 122.62
of the Revised Code, and from grants, gifts, and contributions
subject to any provisions of resolutions authorizing the revenue
bonds or of trust agreements securing such bonds, to community
improvement corporations and Ohio development corporations and other
corporations, partnerships, and persons for the purpose of procuring
or improving real or personal property, or both, for the
establishment, location, or expansion of industrial, distribution,
commercial, or research facilities in the state, and to community
improvement corporations and Ohio development corporations for the
purpose of loaning funds to other corporations, partnerships, and
persons for the purpose of procuring or improving real or personal
property, or both, for the establishment, location, or expansion of
industrial, distribution, commercial, or research facilities in the
state, if the director finds that:
(A)
The project is economically sound and will benefit the people of the
state by increasing opportunities for employment and strengthening
the economy of the state;
(B)
The proposed borrower, if other than a community improvement
corporation or an Ohio development corporation, is unable to finance
the proposed project through ordinary financial channels upon
reasonable terms and at comparable interest rates, or the borrower,
if a community improvement corporation or an Ohio development
corporation, should not, in the opinion of the director, be required
to finance the proposed project without a loan from the director;
(C)
The value of the project is, or upon completion thereof will be, at
least equal to the total amount of the money expended in such
procurement or improvement of which amount one or more financial
institutions have loaned or invested not less than forty per cent;
(D)
The amount to be loaned by the director will not exceed fifty per
cent of the total amount expended in the procurement or improvement
of the project;
(E)
The amount to be loaned by the director will be adequately secured by
a first or second mortgage upon the project, and by mortgages,
leases, liens, assignments, or pledges on or of such other property
or contracts as the director shall require and that such mortgage
will not be subordinate to any other liens or mortgages except the
liens securing loans or investments made by financial institutions
referred to in division (C) of this section, and the liens securing
loans previously made by any financial institution in connection with
the procurement or expansion of all or part of a project.
In
no event may the director lend funds under the authority of this
section for the purpose of procuring or improving motor vehicles,
power driven vehicles, office equipment, raw materials, small tools,
supplies, inventories, or accounts receivable.
Sec.
122.44.
Fees,
charges, rates of interest, times of payment of interest and
principal, and other terms, conditions, and provisions of the loans
made by the director of
housing
and
development
services
pursuant
to sections 122.39 and 122.41 to 122.62 of the Revised Code shall be
such as the director determines to be appropriate and in furtherance
of the purpose for which the loans are made, but the mortgage lien
securing any money loaned by the director may be subordinate to the
mortgage lien securing any money loaned or invested by a financial
institution, but shall be superior to that securing any money loaned
or expended by any other corporation or person. The funds used in
making such loans shall be disbursed upon order of the director.
Sec.
122.45.
The
director of
housing
and
development,
with controlling board approval, may lend funds to any county,
municipal corporation, or township or any other political subdivision
of the state for the purpose of expediting the creation, location, or
expansion of industrial, distribution, commercial, or research
facilities in the state by the construction or installation of
streets, sidewalks, storm sewers, sanitary sewers and sewage disposal
works, water lines, and water supply facilities which such
subdivisions are authorized by law to construct or install, and the
acquisition of lands or easements for such purposes, if the director
finds that:
(A)
A plan for the use of the money so loaned in connection with the
creation, location, or expansion of such a facility is economically
sound and will benefit the people of the state by increasing
opportunities for employment and strengthening the economy;
(B)
The proposed borrower is unable to procure the money for the
aforesaid use within the time required in order to secure the desired
creation, location, or expansion of such facilities;
(C)
An agreement for repayment of the money loaned with interest thereon
has been made by such subdivision evidenced by its notes, bonds, or
by written contract, payable, however, only from moneys payable to
such subdivision by a community improvement corporation, an Ohio
development corporation, or other corporation, partnership, or
person, or any combination thereof;
(D)
There is adequate assurance that the moneys payable by such
corporation or person to such subdivision will be paid as they fall
due and will be payable at such times as are necessary to provide
such subdivision with moneys sufficient to pay its loan to the
director as it falls due.
The
rates of interest and times of payment of interest and principal and
other terms, conditions, and provisions of the loans shall be such as
the director determines to be appropriate and in furtherance of the
purpose for which the loans are made. The funds used in making such
loans shall be disbursed upon order of the director.
Any
subdivision intending to borrow funds from the director pursuant to
this section may agree with a community improvement corporation, an
Ohio development corporation, partnership, or other corporation or
person, or any combination thereof, to construct any one or more of
the improvements for which such funds are to be borrowed in return
for a commitment, satisfactory to both such subdivision and the
director, to make available to such subdivision sufficient moneys to
discharge its loan from the director as it falls due.
Any
subdivision to which such a loan is made may issue to the director
its notes or bonds for the repayment of such loan, or may by written
contract agree to repay such loan provided that the obligation to pay
is limited to the moneys received by the subdivision from such
corporation, partnership, or person and is not an obligation for
which the faith or credit or taxing power of the subdivision is
pledged.
Any
subdivision
receivng
receiving
such a loan may construct or cause to be constructed the improvements
for which such loan is made in the manner provided by law or charter
for the making of contracts for such improvements, and may, if no
special assessments are to be levied against benefited properties,
dispense with all notices to the public or to property owners and all
hearings otherwise required with respect to the making of such
improvements, and in such case no resolution or order determining to
make the improvement shall be subject to any appeal.
Sec.
122.451.
Upon
application of any person, partnership, or corporation, or upon
application of any community improvement corporation organized as
provided in section 1724.01 of the Revised Code, the director of
housing
and
development,
with controlling board approval, may, pledging therefor moneys in the
mortgage insurance fund created by section 122.561 of the Revised
Code, insure or make advance commitments to insure not more than
ninety per cent of any mortgage payments required. Before insuring
any such mortgage payments the director shall determine that:
(A)
The project, in accordance with Section 13 of Article VIII, Ohio
Constitution, will create or preserve jobs and employment
opportunities, or improve the economic welfare of the people of the
state, or be an air quality facility, waste water facility, or solid
waste facility, as defined in section 3706.01, 6121.01, or 6123.01 of
the Revised Code.
(B)
The principal obligation, including initial service charges and
appraisal, inspection, and other fees approved by the director, does
not exceed one hundred per cent of the cost of the project.
(C)
The mortgage has a satisfactory maturity date in no case later than
twenty-five years from the date of the insurance.
(D)
The mortgagor is responsible and able to meet the payments under the
mortgage.
(E)
The mortgage contains complete amortization provisions satisfactory
to the director requiring periodic payments by the mortgagor which
may include principal and interest payments, cost of local property
taxes and assessments, land lease rentals, if any, and hazard
insurance on the property and such mortgage insurance premiums as are
required under section 122.561 of the Revised Code, all as the
director from time to time prescribes or approves.
(F)
The mortgage is in such form and contains such terms and provisions
with respect to property insurance, repairs, alterations, payment of
taxes and assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary liens,
and other matters as the director may prescribe.
The
director may take assignments of insured mortgages and other forms of
security and may take title by foreclosure or conveyance to any
project when an insured mortgage loan thereon is clearly in default
and when in the opinion of the director such acquisition is necessary
to safeguard the mortgage insurance fund, and may sell, or on a
temporary basis lease or rent, such project.
Sec.
122.46.
The
director of
housing
and
development
may purchase real property, and personal property in connection
therewith, in the state from funds available
to him
for that purpose if
he
the director
finds that:
(A)
Such property is owned by the United States, or an agency or
instrumentality thereof, or by the state or an agency,
instrumentality, or subdivision thereof;
(B)
Such property is, or after improvement will be, useful for
industrial, commercial, distribution, or research facilities in the
state;
(C)
Utilization of such property in the creation, location, or expansion
of such facilities is economically sound and will benefit the people
of the state by increasing opportunities for employment and
strengthening the economy.
The
conveyance of such property by an agency, instrumentality, or
subdivision of the state may be made without advertising for bids and
on the terms and in the manner established by such agency,
instrumentality, or subdivision and provided further that if the
property is to be conveyed by the state of Ohio, the director of the
department of the state having jurisdiction or supervision of such
property shall determine if the property is required by such
department and if determined not to be required, shall, with the
approval of the governor and the controlling board, convey such
property to the director of
housing
and
development
at its fair market value as fixed by an appraisal by three
disinterested persons appointed by the director of administrative
services and the deed therefor shall be prepared and recorded
pursuant to section 5301.13 of the Revised Code and the proceeds from
such sale shall be paid into the state treasury to the credit of the
appropriate fund. Such a conveyance shall transfer all interest of
the state in the property.
The
director may improve any property acquired under this section and may
construct and equip buildings, structures, and other facilities
thereon for industrial, commercial, distribution, or research
facilities. It is not intended hereby to authorize the director
himself
to
operate any such industrial, commercial, distribution, or research
facilities.
Such
property, or parts thereof, may be sold by the director or may be
leased by
it
the
director
at such times and in such manner as the director determines and at
such price or on such rentals as the director determines to be fair
and reasonable.
Such
lease may provide for improvements to be made by the lessee at its
expense, all of which shall immediately become the property of the
director. Movable personal property of the lessee shall remain its
property.
The
director shall determine the amount to be paid in the acquisition and
improvement of such property, the price and terms of sale, and the
rents and other terms of any lease including an option to purchase
the leased property. Disbursement of funds shall be made upon order
of the director. All leases, contracts, agreements, and deeds shall
be executed by the director in the manner and by
his
the director's
agents as
he
the director
provides.
Sec.
122.47.
At
the request of the director of
housing
and
development,
the treasurer of state shall issue revenue bonds of the state for the
purpose of acquiring moneys for the purposes of this chapter, which
moneys shall be credited by the treasurer of state as the director of
housing
and
development
shall determine to and among the funds established in accordance with
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,
122.561, and 122.57 of the Revised Code. The principal of and
interest on such revenue bonds shall be payable solely from the
sinking funds established in accordance with section 122.57 of the
Revised Code at the times and in the order and manner provided in the
bond issuing proceedings or in any trust agreements securing such
bonds, and shall be secured by the revenue bond guaranty fund
established in accordance with section 122.571 of the Revised Code
and shall also be secured by moneys in the other funds established by
the director to the extent and on the terms
he
the director
specifies and by covenants of the director
that he will
to
so manage the loans and leases and fix interest rates, charges, and
rentals so as to assure receipt of net income and revenue sufficient
to provide for the payment of the principal of and the interest on
the revenue bonds.
Sec.
122.48.
Each
issue of revenue bonds issued by the treasurer of state pursuant to
sections 122.39 and 122.41 to 122.62 of the Revised Code, shall be
dated, shall bear interest at a rate or rates or at a variable rate,
as provided in or authorized by the proceedings authorizing or
providing for the terms and conditions of the revenue bonds, shall
mature at such time or times, not to exceed forty years from date, as
determined by the director of
housing
and
development
services
and
may be made redeemable before maturity at the option of the director
at such price or prices and under such terms and conditions as are
fixed by the director prior to the issuance of the bonds. The
director shall determine the form of the bonds, including any
interest coupons to be attached thereto, and the denomination or
denominations of the bonds and the place or places of payment of
principal and interest, which may be at any bank or trust company
within or without the state.
The
bonds shall be executed by the signature or facsimile signature of
the treasurer of state, the official seal or a facsimile thereof of
the state shall be affixed thereto and attested by the treasurer of
state or designated treasurer of state, and any coupons attached
thereto shall bear the facsimile signature of the treasurer of state.
In case the person whose signature, or a facsimile of whose
signature, appears on any bonds or coupons ceases to be such officer
before delivery of bonds or in case such person was not at the date
of such bonds or coupons such officer but at the actual date of
execution of such bonds or coupons was the proper officer, such
signature or facsimile shall nevertheless be valid and sufficient for
all purposes the same as if the person had remained in office until
such delivery.
All
revenue bonds issued under sections 122.39 and 122.41 to 122.62 of
the Revised Code, shall be negotiable instruments. The bonds may be
issued in coupon or in registered form or both, as the treasurer
determines. Provision may be made for the registration of any coupon
bonds as to the principal alone and also as to both principal and
interest, and for the reconversion into coupon bonds of any bonds
registered as to both principal and interest. The treasurer of state
may sell such bonds in the manner and for the price the treasurer of
state determines to be for the best interest of the state.
Prior
to the preparation of definitive bonds, the treasurer of state may,
under like restrictions, issue interim receipts or temporary bonds,
with or without coupons, exchangeable for definitive bonds when such
bonds have been executed and are available for delivery. The
treasurer of state may also provide for the replacement of any bonds
which become mutilated or are destroyed, stolen, or lost. Bonds may
be issued under sections 122.39
and
122.41
to 122.62 of the Revised Code, without obtaining the consent of any
department, division, commission, board, bureau, or agency of the
state, and without any other proceeding or the happening of any other
conditions or things than those proceedings, conditions, or things
which are specifically required by such sections.
Sec.
122.49.
The
proceeds of each issue of revenue bonds issued pursuant to sections
122.39 and 122.41 to 122.62 of the Revised Code shall be used for the
making of loans authorized in sections 122.43 and 122.45 of the
Revised Code, for the purchase and improvement of property authorized
in section 122.46 of the Revised Code, for insuring mortgage payments
authorized in section 122.451 of the Revised Code, and for the
crediting into and among the funds established in accordance with
sections 122.35, 122.54, 122.55, 122.56, 122.561, and 122.57 of the
Revised Code, but subject to such conditions, limitations, and
covenants with the purchasers and holders of the bonds as shall be
provided for in the bond authorization proceedings and in the trust
agreement securing the same.
Provision
shall be made by the director of
housing
and
development
services
for
the payment of the expenses of the director in operating the
assistance programs authorized under this chapter in such manner and
to such extent as shall be determined by the director.
Sec.
122.52.
The
director of
housing
and
development
services
may
provide for the issuance of revenue refunding bonds of the state by
the treasurer of state, payable solely from the sinking funds
established in accordance with section 122.51 of the Revised Code at
the times and in the order and manner provided by the director and in
any trust agreement securing such bonds and shall also be secured by
moneys in the other funds established pursuant to sections 122.39 and
122.41 to 122.62 of the Revised Code to the extent and on the terms
specified by the director, for the purpose of refunding any revenue
bonds then outstanding which have been issued under sections 122.39
and 122.41 to 122.62 of the Revised Code, including the payment of
any redemption premium thereon and any interest accrued or to accrue
to the date of redemption of such bonds. The issuance of such bonds,
the maturities and other details thereof, the rights of the holders
thereof, and the rights, duties, and obligations of the director and
treasurer of state in respect to such bonds shall be governed by such
sections insofar as they are applicable.
Sec.
122.53.
In
the discretion of the treasurer of state, any bonds issued under
sections 122.39 and 122.41 to 122.62 of the Revised Code, may be
secured by a trust agreement between the treasurer of state and a
corporate trustee, which trustee may be any trust company or bank
having the powers of a trust company within or without the state.
Any
such trust agreement may pledge or assign payments of principal of
and interest on loans, charges, fees, and other revenue to be
received by the director of
housing
and
development
services
,
all rentals received under leases made by the director, and all
proceeds of the sale or other disposition of property held by the
director, and may provide for the holding in trust by the trustee to
the extent provided for in the proceedings authorizing such bonds, of
all such moneys and moneys otherwise payable into the mortgage
guarantee fund created by section 122.56 of the Revised Code, and all
moneys otherwise payable into the mortgage insurance fund created by
section 122.561 of the Revised Code, and of moneys payable into the
sinking fund or funds referred to in section 122.57 of the Revised
Code, but shall not convey or mortgage any of the real or personal
property held by the director or any part thereof. Any such trust
agreement, or any proceedings providing for the issuance of such
bonds, may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as are reasonable and proper
and not in violation of law, including covenants setting forth the
duties of the director in relation to the acquisition of property,
and the construction, improvement, maintenance, repair, operation,
and insurance of facilities, the making of loans and leases and the
terms and provisions thereof, and the custody, safeguarding,
investment, and application of all moneys, and provisions for the
employment of consulting engineers or other consultants in connection
with the making of loans and leases and the construction or operation
of any facility. Any bank or trust company incorporated under the
laws of this state which may act as trustee or as depository of the
proceeds of bonds or of revenue may furnish such indemnifying bonds
or may pledge such securities as are required by the treasurer of
state. Any such trust agreement may set forth the rights and remedies
of the bondholders and of the trustee, and may restrict the
individual right of action by bondholders as is customary in trust
agreements or trust indentures securing bonds or debentures of
corporations. Such trust agreement may contain such other provisions
as the treasurer of state deems reasonable and proper for the
security of the bondholders. All expenses incurred by the treasurer
of state in carrying out the provisions of any such trust agreement
shall be treated as a part of the cost of the operation of the
assistance programs authorized pursuant to Chapter 122. of the
Revised Code. Any such trust agreement may provide the method whereby
general administrative overhead expense of the director with respect
to those assistance programs shall be allocated among the funds
established pursuant to Chapter 122. of the Revised Code with respect
to the operating expenses of the director payable out of the income
of the assistance programs.
Sec.
122.54.
The
direct loan program fund is hereby created within the state treasury,
to consist of money appropriated for the purpose of making loans
authorized under sections 122.43 and 122.45 of the Revised Code,
money from the proceeds of the sale of any issue of its revenue bonds
to the extent and subject to the conditions provided in the
proceedings authorizing such bonds or in the trust agreement securing
such bonds, all grants, gifts, and contributions made to the director
of
housing
and
development
for such purpose, and all other moneys designated by
him
the director
for the purpose of making loans or required to be used for such
purpose by the provisions of any proceedings authorizing an issue of
revenue bonds or trust agreement securing such bonds. All moneys
received from repayments of loans authorized pursuant to sections
122.43 and 122.45 of the Revised Code or received in the event of a
default on any such loans shall be deposited in the general revenue
fund.
Sec.
122.55.
The
purchase fund of the director of
housing
and
development
is hereby created to consist of all money allocated by the director
for the purchase and improvement of property authorized to be
purchased under section 122.46 of the Revised Code from the proceeds
of the sale of any issue of revenue bonds to the extent and subject
to the conditions provided in the proceedings authorizing such bonds
or in the trust agreements securing such bonds, all grants, gifts,
and contributions made to the director for such purpose, and all
other moneys designated by
him
the director
for the purpose of the acquisition and improvement of property.
Sec.
122.56.
The
mortgage guarantee fund of the director of
housing
and
development
is hereby created to consist of all grants, gifts, and contributions
of moneys or rights to moneys made to the director for such fund, all
moneys and rights to moneys lawfully designated for or deposited in
such fund, all guarantee fees charged and collected as provided in
this section, and all moneys and rights to moneys lawfully allocated
by the director to such fund from the proceeds of the sale of any
issue of revenue bonds. Moneys or rights to
money
moneys
shall be used for the guaranty of the payment of the loans made under
sections 122.43 and 122.45 of the Revised Code, or for the guaranty
of the payment of the rentals payable under the lease made under the
authority of section 122.46 of the Revised Code, or for the guaranty
of the payment of rentals payable under a lease made under authority
of section 165.02 of the Revised Code, or of rentals payable under a
lease made under authority of section 761.02 of the Revised Code, or
a sublease made pursuant to such lease, to the extent and subject to
the conditions provided in the proceedings authorizing such guaranty
or the proceedings authorizing such bonds or in the trust agreement
securing such bonds. The director shall fix charges for the guaranty
of payment of the loans made under sections 122.43 and 122.45 of the
Revised Code and for the guaranty of the payment of the rentals
payable under the leases made by the authority under section 122.46
of the Revised Code. Such charges shall be payable at such times and
place and in such manner as may be prescribed by the director. In the
event that the principal obligation of any loan is paid in full prior
to the maturity date or in the event that purchase option of any
lease is exercised prior to the end of the term thereof, the director
may require the payment of an adjusted charge in such amount as
he
the director
determines to be equitable, and may refund from the mortgage
guarantee fund such portion of charges theretofore paid as the
director determines to be equal to the unearned portion thereof.
Sec.
122.561.
The
mortgage insurance fund of the director of
housing
and
development
services
is
hereby created to consist of all money allocated by the director from
the proceeds of the sale of any issue of revenue bonds, to the extent
and subject to the conditions provided in the proceedings authorizing
such bonds or in the trust agreements securing such bonds, for the
purpose of insuring mortgage payments pursuant to section 122.451 of
the Revised Code, all grants and contributions made to the director
for such purpose, all moneys deposited or credited to the mortgage
insurance fund pursuant to section 169.05 of the Revised Code, all
other moneys and property designated by the director and by law for
such purpose, all mortgage insurance premiums charged and collected
as provided in this section, and all receipts and proceeds from the
sale, disposal, lease, or rental of real or personal property which
the director may hold as a result of a default in an insured
mortgage. The director shall fix mortgage insurance premiums for the
insurance of mortgage payments pursuant to section 122.451 of the
Revised Code, to be computed as a percentage of the principal
obligation of the mortgage outstanding at the beginning of each
mortgage year. Such insurance premiums shall not be more than three
per cent per annum of the outstanding principal obligation, and shall
be calculated on the basis of all pertinent available data. Such
premiums shall be payable by the mortgagors or the mortgagees in such
manner as is prescribed by the director. The amount of premium need
not be uniform among the various mortgages insured. The director may
provide for the custody, investment, and use of the unclaimed funds
trust fund created by section 169.05 of the Revised Code and all
mortgage insurance premiums, including the payment therefrom of the
expenses and costs of the director in insuring mortgage payments
pursuant to section 122.451 of the Revised Code. Any financial
statements or financial data submitted to the director or the
controlling board in connection with any application for the
insurance of mortgage payments, or any information taken from such
statements or data, is not open to public inspection.
Sec.
122.57.
All
payments of principal of and interest on the loans made by the
director of
housing
and
development
services
,
all rentals received under leases made by the director, and all
proceeds of the sale or other disposition of property held by the
director shall be placed in separate sinking funds to the extent
provided in the proceedings authorizing revenue bonds which are
hereby pledged to and charged with the payment of interest on,
principal of and redemption premium on, the revenue bonds issued
pursuant to sections 122.39 and 122.41 to 122.62 of the Revised Code
to the extent provided in the proceedings authorizing and the trust
agreements securing such bonds. The moneys therein in excess of the
amounts required by the bond proceedings and trust agreements and all
payments not so required to be paid into such sinking funds shall be
retained or placed in such fund or in the other funds provided for by
sections 122.35,
122.42,
122.54,
122.42,
122.55, 122.56, 122.561, and 122.57 of the Revised Code as the
director shall determine, and shall be available for the uses for
which such funds are established.
Sec.
122.571.
In
addition to the separate sinking funds created under section 122.57
of the Revised Code, there is hereby created the revenue bond
guaranty fund to consist of all money allocated by the director of
housing
and
development
to guarantee payment of interest on, principal of and redemption
premium on, the revenue bonds issued by the director under Chapter
122. of the Revised Code, all grants, gifts, and contributions made
to the director for such purpose, and all money and property provided
by law for such purpose.
Sec.
122.58.
Moneys
in the funds established pursuant to Chapter 122. of the Revised
Code, except as otherwise provided in any proceedings authorizing
revenue bonds or in any trust agreement securing such bonds, in
excess of current needs, may be invested in notes, bonds, or other
obligations which are direct obligations of or are guaranteed by the
United States, in certificates of deposit or other withdrawable
accounts of banks, trust companies, and building and loan or savings
and loan associations organized under the laws of the state or the
United States, or in the manner provided in any agreement entered
into pursuant to section 169.05 of the Revised Code.
Income
from all such investments of moneys in any fund shall be credited to
such funds as the director of
housing
and
development
determines subject to the provisions of any bond issuance proceedings
or trust agreement, and such investments may be sold at such time as
the director shall determine, provided certificates of deposit or
other withdrawable accounts may be sold only in accordance with
division (B) of section 169.05 or divisions (E) and (F) of section
169.08 of the Revised Code.
Sec.
122.59.
In
the event of a default with respect to any loan or lease, the
director of
housing
and
development
shall take such action as
he
the
director
deems proper in the circumstances to enforce and protect the rights
of the director, and such action as may be required by the provisions
of any proceedings authorizing the revenue bonds or of any trust
agreement securing such bonds, which may include any appropriate
action at law or in equity, enforcement or waiver of any provision of
any mortgage or security agreement or lease, or reinstatement of any
forfeited or cancelled right, title, or privilege. Notwithstanding
any such action, the director shall transfer from the mortgage
guarantee fund created by section 122.56 of the Revised Code to the
sinking fund or funds referred to in section 122.57 of the Revised
Code amounts not greater than the amounts which would have been paid
upon such loan or under such lease but for such default, at the time
or times when such amounts would have been paid but for such
defaults, to the extent provided in the proceedings authorizing and
the trust agreements securing such bonds, to be held and applied as
other moneys in the sinking fund, and shall make such other transfers
and take such other action as shall be required of the director by
any such bond issuance proceedings or trust agreement.
Sec.
122.60.
As
used in sections 122.60 to 122.605 of the Revised Code:
(A)
"Capital access loan" means a loan made by a participating
financial institution to an eligible business that may be secured by
a deposit of money from the fund into the participating financial
institution's program reserve account.
(B)
"Eligible business" means a for-profit business entity, or
a nonprofit entity, that had total annual sales in its most recently
completed fiscal year of less than ten million dollars and that has a
principal place of for-profit business or nonprofit entity activity
within the state, the operation of which, alone or in conjunction
with other facilities, will create new jobs or preserve existing jobs
and employment opportunities and will improve the economic welfare of
the people of the state. As used in this division, "new jobs"
does not include existing jobs transferred from another facility
within the state, and "existing jobs" means only existing
jobs at facilities within the same municipal corporation or township
in which the project, activity, or enterprise that is the subject of
a capital access loan is located.
(C)
"Financial institution" means any bank, trust company,
savings bank, or savings and loan association that is chartered by
and has a significant presence in the state, or any national bank,
federal savings and loan association, or federal savings bank that
has a significant presence in the state.
(D)
"Fund" means the capital access loan program fund.
(E)
"Minority business supplier development council" has the
same meaning as in section 122.71 of the Revised Code.
(F)
"Participating financial institution" means a financial
institution that has a valid, current participation agreement with
the department of
housing
and
development.
(G)
"Participation agreement" means the agreement between a
financial institution and the department under which a financial
institution may participate in the program.
(H)
"Passive real estate ownership" means the ownership of real
estate for the sole purpose of deriving income from it by
speculation, trade, or rental.
(I)
"Program" means the capital access loan program created
under section 122.602 of the Revised Code.
(J)
"Program reserve account" means a dedicated account at each
participating financial institution that is the property of the state
and may be used by the participating financial institution only for
the purpose of recovering a claim under section 122.604 of the
Revised Code arising from a default on a loan made by the
participating financial institution under the program.
Sec.
122.601.
There
is hereby created in the state treasury the capital access loan
program fund. The fund shall consist of money deposited into it from
the minority business enterprise loan fund pursuant to section 122.80
of the Revised Code and the facilities establishment fund pursuant to
section 166.03 of the Revised Code and all money deposited into it
pursuant to section 122.602 of the Revised Code. The total amount of
money deposited into the fund from the minority business enterprise
loan fund or the facilities establishment fund shall not exceed three
million dollars during any particular fiscal year of the department
of
housing
and
development.
The
department shall disburse money from the fund only to pay the
operating costs of the program, including the administrative costs
incurred by the department in connection with the program, and only
in keeping with the purposes specified in sections 122.60 to 122.605
of the Revised Code.
Sec.
122.602.
(A)
There is hereby created in the department of
housing
and
development
the capital access loan program to assist participating financial
institutions in making program loans to eligible businesses that face
barriers in accessing working capital and obtaining fixed asset
financing. In administering the program, the director of
housing
and
development
may do any of the following:
(1)
Receive and accept grants, gifts, and contributions of money,
property, labor, and other things of value to be held, used, and
applied only for the purpose for which the grants, gifts, and
contributions are made, from individuals, private and public
corporations, the United States or any agency of the United States,
the state or any agency of the state, or any political subdivision of
the state;
(2)
Agree to repay any contribution of money or return any property
contributed or the value of that property at the times, in the
amounts, and on the terms and conditions, excluding the payment of
interest, that the director consents to at the time a contribution is
made; and evidence obligations by notes, bonds, or other written
instruments;
(3)
Adopt rules under Chapter 119. of the Revised Code to carry out the
purposes of the program specified in sections 122.60 to 122.605 of
the Revised Code;
(4)
Engage in all other acts, and enter into contracts and execute all
instruments, necessary or appropriate to carry out the purposes
specified in sections 122.60 to 122.605 of the Revised Code.
(B)
The director shall determine the eligibility of a financial
institution to participate in the program and may set a limit on the
number of financial institutions that may participate in the program.
(C)
To be considered eligible by the director to participate in the
program, a financial institution shall enter into a participation
agreement with the department that sets out the terms and conditions
under which the department will deposit moneys from the fund into the
financial institution's program reserve account, specifies the
criteria for loan qualification under the program, and contains any
additional terms the director considers necessary.
(D)
After receiving the certification required under division (C) of
section 122.603 of the Revised Code, the director may disburse moneys
from the fund to a participating financial institution for deposit in
its program reserve account if the director determines that the
capital access loan involved meets all of the following criteria:
(1)
It will be made to an eligible business.
(2)
It will be used by the eligible business for a project, activity, or
enterprise that fosters economic development.
(3)
It will not be made in order to enroll in the program prior debt that
is not covered under the program and that is owed or was previously
owed by an eligible business to the financial institution.
(4)
It will not be utilized for a project or development related to the
on-site construction or purchase of residential housing.
(5)
It will not be used to finance passive real estate ownership.
(6)
It conforms to the requirements of divisions (E), (F), (G), (H), and
(I) of this section, and to the rules adopted by the director under
division (A)(3) of this section.
(E)
The director shall not approve a deposit amount from the fund for a
capital access loan to an eligible business that exceeds two hundred
fifty thousand dollars for working capital or five hundred thousand
dollars for the purchase of fixed assets. An eligible business may
apply for the maximum deposit amount for both working capital and the
purchase of fixed assets in the same capital access loan enrollment.
(F)
A financial institution may apply to the director for the approval of
a capital access loan to any business that is owned or operated by a
person that has previously defaulted under any state financial
assistance program.
(G)
Eligible businesses that apply for a capital access loan shall comply
with section 9.66 of the Revised Code.
(H)
A financial institution may apply to the director for the approval of
a capital access loan that refinances a nonprogram loan made by
another financial institution.
(I)
The director shall not approve a capital access loan that refinances
a nonprogram loan made by the same financial institution, unless the
amount of the refinanced loan exceeds the existing debt, in which
case only the amount exceeding the existing debt is eligible for a
loan under the program.
Sec.
122.603.
(A)(1)
Upon approval by the director of
housing
and
development
and after entering into a participation agreement with the department
of
housing
and
development
a participating financial institution making a capital access loan
shall establish a program reserve account. The account shall be an
interest-bearing account and shall contain only moneys deposited into
it under the program and the interest payable on the moneys in the
account.
(2)
All interest payable on the moneys in the program reserve account
shall be added to the moneys and held as an additional loss reserve.
The director may require that a portion or all of the accrued
interest so held in the account be released to the department. If the
director causes a release of accrued interest, the director shall
deposit the released amount into the capital access loan program fund
created in section 122.601 of the Revised Code. The director shall
not require the release of that accrued interest more than twice in a
fiscal year.
(B)
When a participating financial institution makes a capital access
loan, it shall require the eligible business to pay to the
participating financial institution a fee in an amount that is not
less than one and one-half per cent, and not more than three per
cent, of the principal amount of the loan. The participating
financial institution shall deposit the fee into its program reserve
account, and it also shall deposit into the account an amount of its
own funds equal to the amount of the fee. The participating financial
institution may recover from the eligible business all or part of the
amount that the participating financial institution is required to
deposit into the account under this division in any manner agreed to
by the participating financial institution and the eligible business.
(C)
For each capital access loan made by a participating financial
institution, the participating financial institution shall certify to
the director, within a period specified by the director, that the
participating financial institution has made the loan. The
certification shall include the amount of the loan, the amount of the
fee received from the eligible business, the amount of its own funds
that the participating financial institution deposited into its
program reserve account to reflect that fee, and any other
information specified by the director. The certification also shall
indicate if the eligible business receiving the capital access loan
is a minority business enterprise as defined in section 122.71 of the
Revised Code or certified by the minority business supplier
development council.
(D)(1)(a)
Upon receipt of each of the first three certifications from a
participating financial institution made under division (C) of this
section and subject to section 122.602 of the Revised Code, the
director shall disburse to the participating financial institution
from the capital access loan program fund an amount not to exceed
fifty per cent of the principal amount of the particular capital
access loan for deposit into the participating financial
institution's program reserve account. Thereafter, upon receipt of a
certification from that participating financial institution made
under division (C) of this section and subject to section 122.602 of
the Revised Code, the director shall disburse to the participating
financial institution from the capital access loan program fund an
amount equal to ten per cent of the principal amount of the
particular capital access loan for deposit into the participating
financial institution's program reserve account.
(b)
Notwithstanding division (D)(1)(a) of this section, and subject to
section 122.602 of the Revised Code, upon receipt of any
certification from a participating financial institution made under
division (C) of this section with respect to a capital access loan
made to an eligible business that is a minority business enterprise,
the director shall disburse to the participating financial
institution from the capital access loan program fund an amount not
to exceed eighty per cent of the principal amount of the particular
capital access loan for deposit into the participating financial
institution's program reserve account.
(2)
The disbursement of moneys from the fund to a participating financial
institution does not require approval from the controlling board.
(E)
If the amount in a program reserve account exceeds an amount equal to
thirty-three per cent of a participating financial institution's
outstanding capital access loans, the department may cause the
withdrawal of the excess amount and the deposit of the withdrawn
amount into the capital access loan program fund.
(F)(1)
The department may cause the withdrawal of the total amount in a
participating financial institution's program reserve account if any
of the following applies:
(a)
The financial institution is no longer eligible to participate in the
program.
(b)
The participation agreement expires without renewal by the department
or the financial institution.
(c)
The financial institution has no outstanding capital access loans.
(d)
The financial institution has not made a capital access loan within
the preceding twenty-four months.
(2)
If the department causes a withdrawal under division (F)(1) of this
section, the department shall deposit the withdrawn amount into the
capital access loan program fund.
Sec.
122.604.
(A)
If a participating financial institution determines that a portion or
all of a capital access loan is uncollectible, it may submit a claim
to the department of
housing
and
development
for approval of the release of moneys from its program reserve
account.
(B)
The claim may include the amount of principal plus accrued interest
owed. The amount of principal included in the claim may not exceed
the principal amount covered by the program. The amount of accrued
interest included in the claim may not exceed the accrued interest
attributable to the covered principal amount.
(C)
The participating financial institution shall determine the timing
and amount of delinquency on a capital access loan in a manner
consistent with the participating financial institution's normal
method for making these determinations on similar nonprogram loans.
(D)
If the participating financial institution files two or more claims
at the same time or approximately the same time and there are
insufficient funds in its program reserve account at that time to
cover the entire amount of the claims, the participating financial
institution may specify an order of priority in which the department
shall approve the release of funds from the account in relation to
the claims.
(E)
If subsequent to the payment of a claim, a participating financial
institution recovers from an eligible business any amount covered by
the paid claim, the participating financial institution shall
promptly deposit the amount recovered into its program reserve
account, less any reasonable expenses incurred.
Sec.
122.605.
Each
participating financial institution shall submit an annual report to
the department of
housing
and
development
on or before the thirty-first day of March of each year. The report
shall include or be accompanied by all of the following:
(A)
Information regarding the participating financial institution's
outstanding capital access loans, its capital access loan losses, and
other related matters that the department considers appropriate;
(B)
A statement of the total amount of the participating financial
institution's capital access loans for which the department has made
disbursements from the fund under the program;
(C)
A copy of the participating financial institution's most recent
financial statement.
Sec.
122.61.
The
exercise of the powers granted by sections 122.39 and 122.41 to
122.62 of the Revised Code, will be in all respects for the benefit
of the people of the state, for the increase of their commerce and
prosperity, and for the improvement of conditions of employment, and
will constitute the performance of essential governmental functions;
therefore the director of
housing
and
development
services
shall
not be required to pay any taxes upon any property or assets held by
the director, or upon any property acquired or used by the director
under sections 122.39 and 122.41 to 122.62 of the Revised Code, or
upon the income therefrom, provided, such exemption shall not apply
to any property held by the director while it is in the possession of
a private person, partnership, or corporation and used for private
purposes for profit. The bonds, notes, or other obligations issued
under such sections, their transfer, and the income therefrom,
including any profit made on the sale thereof, shall at all times be
free from taxation within the state.
Sec.
122.62.
All
moneys received under sections 122.39 and 122.41 to 122.62 of the
Revised Code as proceeds from the sale of bonds are trust funds. All
moneys received under those sections shall be held and applied solely
as provided in such sections and section 166.03 of the Revised Code.
All such moneys, except as otherwise provided in any proceedings
authorizing revenue bonds or in any trust agreement securing such
bonds or except when deposited with the treasurer of state, or except
as they may be invested pursuant to section 122.58 of the Revised
Code, shall be kept in depositories as selected by the director of
housing
and
development
services
in
the manner provided in sections 135.01 to 135.21 of the Revised Code,
insofar as such sections are applicable, and the deposits shall be
secured as provided in sections 135.01 to 135.21 of the Revised Code.
The proceedings authorizing the issuance of bonds of any issue or the
trust agreement securing such bonds shall provide that any official
to whom, or any bank or trust company to which, such moneys are paid,
shall act as trustee of such moneys and hold and apply them for the
purposes of sections 122.39 and 122.41 to 122.62 of the Revised Code,
subject to such rules as such sections and such bond issuance
proceedings or trust agreement provide.
Sec.
122.63.
The
department of
housing
and
development
shall:
(A)
Provide technical assistance to sponsors, homeowners, private
developers, contractors, and other appropriate persons on matters
relating to housing needs and the development, construction,
financing, operation, management, and evaluation of housing
developments;
(B)
Carry out continuing studies and analyses of the housing needs of
this state and, after conducting public hearings, prepare annually a
plan of housing needs, primarily for the use of the department. The
plan, copies of which shall be filed with the speaker of the house of
representatives and the president of the senate for distribution to
the members of the general assembly, shall:
(1)
Establish areawide housing needs, including existing and projected
needs for the provision of an adequate supply of decent, safe, and
sanitary housing for low- and moderate-income persons, including
housing that may require utilization of state or federal assistance;
(2)
Establish priorities for housing needs, taking into account the
availability of and need for conserving land and other natural
resources;
(3)
Be coordinated with other housing and related planning of the state
and of regional planning agencies.
(C)
Carry out the provisions of Chapter 3735. of the Revised Code
relating to metropolitan housing authorities;
(D)
Carry out the provisions of sections 174.01 to 174.07 of the Revised
Code relating to the low- and moderate-income housing trust fund.
Sec.
122.631.
(A)
As used in sections 122.631 to 122.633 of the Revised Code:
(1)
"Electing subdivision," "county land reutilization
corporation," and "land reutilization program" have
the same meanings as in section 5722.01 of the Revised Code.
(2)
"Manufactured home" has the same meaning as in section
3781.06 of the Revised Code
,
and "mobile home" has the same meaning as in section
4501.01 of the Revised Code
.
(3)
"Qualifying residential property" means
single-family
residential property, including a
a
single unit of single-family residential property that has at least
eight hundred square feet of habitable space and is either a
stand-alone unit or in a multi-unit property containing not more than
ten single-family residential units. "Qualifying residential
property" excludes mobile homes but includes both of the
following:
(a)
A manufactured home;
(b)
A
single
unit in a multi-unit property
containing
not more than ten units but excluding manufactured homes, that has at
least one thousand square feet of habitable space per unit
that
has other nonresidential units or uses. Such nonresidential units or
uses are not qualifying residential property
.
(4)
"Qualifying median income" means
eighty
one
hundred twenty
per
cent of median income for the county where qualifying residential
property is located, as determined by the director of
housing
and
development
pursuant to section 174.04 of the Revised Code.
(5)
"Qualifying financial literacy counseling" means a
homeownership course with a curriculum that includes basic home
maintenance training and financial literacy.
(6)
"Qualifying counseling provider" means an individual,
business, nonprofit organization, or political subdivision, including
an agency or instrumentality thereof, that is licensed, certified, or
authorized to provide homeownership counseling and financial literacy
as one of its primary functions, including housing counselors
certified by the United States department of housing and urban
development or the Ohio housing financing agency.
(B)
There is created in the department of
housing
and
development
the welcome home Ohio (WHO) program to administer the grants
authorized by this section and section
163.632
122.632
of
the Revised Code and the tax credits authorized by section 122.633 of
the Revised Code. The department shall create and maintain a list of
qualifying residential property
to
for
which
the
deed restriction
a
mortgage
described
in division (D)(4) of this section, division (B)(4) of section
122.632, or division (C)(4) of section 122.633 of the Revised Code
applies
is
held
.
That list is not a public record for purposes of section 149.43 of
the Revised Code.
(C)
An electing subdivision or county land reutilization corporation may
apply to the director of
housing
and
development
for a grant from the welcome home Ohio fund, which is created in the
state treasury, to pay or defer the cost of purchasing qualifying
residential property for incorporation into the electing
subdivision's or county land reutilization corporation's land
reutilization program.
Up
to two thousand dollars of each grant may be used to fund the
qualifying financial literacy counseling required under division
(D)(6) of this section.
To
the extent that funding is available in that fund, the director may
award grants to electing subdivisions and county land reutilization
corporations that make such an application and agree to comply with
division (D) of this section.
(D)
The director of
housing
and
development
shall require all applicants for a grant authorized by division (C)
of this section to agree, as part of the application, to all of the
following:
(1)
That grant funds shall only be used to pay the cost of purchasing
qualifying residential property;
(2)
That qualifying residential property on which grant funds are spent
shall be held until sold to an individual or individuals who,
inclusively:
(a)
Have annual income that is not more than the qualifying median
income;
(b)
Demonstrate the financial means to purchase the qualifying
residential property;
(c)
Agree to maintain ownership of the qualifying residential property,
occupy it as a primary residence, and not to rent any portion of the
property to another individual for use as a dwelling, for at least
five
three
years
following the date of purchase;
(d)
Agree not to sell the qualifying residential property, within
twenty
fifteen
years
after the date of the sale, to any purchaser except an individual or
individuals who have annual income that is not more than the
qualifying median income;
(e)
Agree to pay a penalty to the director of
housing
and
development
for violation of the agreement required by division (D)(2)(c) of this
section that
,
subject to divisions (F)(2) and (3) of this section,
equals
ninety
thousand dollars
the
amount of the grant attributable to the property
,
less
eighteen
thousand dollars
one-third
of that amount
multiplied
by the number of full years the individual or individuals owned the
property;
(f)
Agree that the director of
housing
and
development
is a third-party beneficiary of the purchase agreement;
(g)
Agree to participate in the applicant's
qualifying
financial
literacy program;
(h)
Agree to
annually
certify
to the director of
housing
and
development
or the director's designee
,
upon
the request of the director anytime
during
the period described by division (D)(2)(c) of this section, that the
individual or individuals own and occupy the qualifying residential
property, and that no part of the property is being rented to another
individual for use as a dwelling.
(3)
That qualifying residential property on which grant funds are spent
shall be sold for not more than
one
two
hundred
eighty
twenty
thousand
dollars per property.
(4)
That qualifying residential property on which grant funds are spent
shall not be sold without a
deed
restriction prohibiting
promissory
note, secured by a mortgage, both executed by the purchaser in favor
of the director of housing and development. The note shall require a
payment to the director of housing and development upon
the
sale of the property to a person that is not an individual or
individuals who have annual income that is not more than the
qualifying
median
income for
twenty
fifteen
years
after the date of the property's first transfer from the applicant
following the use of grant funds.
The
payment shall be the amount of the grant attributable to the
property, less one-fifteenth of that amount multiplied by the number
of full years the individual or individuals owned the property. The
mortgage shall be subordinate to any mortgage securing a note
executed by the purchaser to purchase the property. The director of
housing and development may execute any documents necessary to
recognize that subordination or wholly or partially forgive amounts
due on a note executed pursuant to this division if doing so does not
grant a purchaser an undue windfall or hinder the WHO program's
objectives of increasing the supply of safe and affordable
owner-occupied housing. The director shall allow a subsequent
purchaser that is an individual or individuals who have annual income
that is not more than the qualifying median income to assume
liability on the note when purchasing the property.
(5)
That the applicant shall repay all grant funds not expended to
purchase qualifying residential property
or
to fund the qualifying financial literacy counseling required by
division (D)(6) of this section
and
all grant funds expended to purchase qualifying residential property
that is not sold to an individual or individuals who meet the
requirements described in division (D)(2) of this section or that is
sold without the
deed
restriction
promissory
note and mortgage
described
in division (D)(4) of this section.
(6)
That the applicant shall provide
qualifying
financial
literacy counseling,
over
a minimum of one year,
delivered
by a qualifying counseling provider,
to
each purchaser of qualifying residential property on which grant
funds are spent. An applicant may provide information regarding its
qualifying
financial
literacy program to the director of
housing
and
development
for review as part of the application or prior to application.
Financial
Qualifying
financial
literacy
counseling provided by the applicant to the same purchaser, in
accordance with division (B)(6) of section 122.632 of the Revised
Code or division (C)(5) of section 122.633 of the Revised Code,
satisfies the requirements of division (D)(6) of this section.
(7)
That the applicant shall report to the department of
housing
and
development
the date when the qualifying residential property that is the subject
of the application is sold by the applicant.
(E)
The
director of development has authority and standing to sue for the
enforcement of a deed restriction described in division (D)(4) of
this section.
(F)(1)
An
electing subdivision or county land reutilization corporation may
apply for, and the director of
housing
and
development
may award both a grant under this section for the purchase of
qualifying residential property, and either a grant under section
122.632 of the Revised Code, or a tax credit under section 122.633 of
the Revised Code, to rehabilitate or construct the same qualifying
residential property.
(2)
If an electing subdivision or county land reutilization is awarded a
grant under this section and a grant under section 122.632 of the
Revised Code for the same qualifying residential property, and the
individual or individuals who purchase the property violate both of
the agreements required by division (D)(2)(c) of this section and
division (B)(2)(c) of section 122.632 of the Revised Code, only the
penalty described by division (B)(2)(e) of section 122.632 of the
Revised Code applies.
(3)
If an electing subdivision or county land reutilization is awarded a
grant under this section and a tax credit under section 122.633 of
the Revised Code for the same qualifying residential property, and
the individual or individuals who purchase the property violate both
of the agreements required by division (D)(2)(c) of this section and
division (C)(2)(a) of section 122.633 of the Revised Code, only the
greater of the penalties described in divisions (D)(2)(e) of this
section and division (C)(2)(c) of section 122.633 of the Revised Code
applies.
(G)(1)
(F)(1)
The
director may adopt rules in accordance with Chapter 119. Of the
Revised Code as necessary to administer the grant program. Such rules
may include the following:
(a)
Application forms, deadlines, and procedures;
(b)
Criteria for evaluating and prioritizing applications;
(c)
Guidelines for promoting an even geographic distribution of grants
throughout the state
;
(d)
Guidelines to determine the value of qualifying residential property
located in a building with other uses and the total value of that
building
.
(2)
Any grants repaid under this section shall be credited to the welcome
home Ohio fund.
Sec.
122.632.
(A)
An electing subdivision or county land reutilization corporation may
apply to the director of
housing
and
development
for a grant from the welcome home Ohio fund created in section
122.631 of the Revised Code to pay or defer the cost to rehabilitate
or construct qualifying residential property held by the electing
subdivision's or county land reutilization corporation's land
reutilization program. To the extent that funding is available, in
that fund the director may award grants to electing subdivisions and
county land reutilization corporations that make such an application
and agree to comply with division (B) of this section, with a maximum
grant of
thirty
ninety
thousand
dollars per qualifying residential property.
(B)
The director of
housing
and
development
shall require all applicants for a grant authorized by division (A)
of this section to agree, as part of the application, to all of the
following:
(1)
That grant funds shall
only
be
used to pay the cost of rehabilitation or construction of qualifying
residential property and all work will be completed according to all
applicable construction and design standards
;
.
Up to two thousand dollars of each grant may be used to fund the
qualifying financial literacy counseling required under division
(B)(6) of this section. If grant funds are spent to construct or
rehabilitate a qualifying residential property described in division
(A)(3)(b) of section 122.631 of the Revised Code, then no portion of
the funds shall be spent to construct or rehabilitate portions of the
building that are for nonresidential uses, except for common areas
used by the residential units and improvements that serve both the
residential units and the other portions of the building.
(2)
That qualifying residential property on which grant funds are spent
shall be held until sold to an individual or individuals who,
inclusively:
(a)
Have annual income that is not more than the qualifying median
income;
(b)
Demonstrate the financial means to purchase the qualifying
residential property;
(c)
Agree to maintain ownership of the qualifying residential property,
occupy it as a primary residence, and not to rent any portion of the
property to another individual for use as a dwelling, for at least
five
three
years
following the date of purchase;
(d)
Agree not to sell the qualifying residential property, within
twenty
fifteen
years
after the date of the sale, to any purchaser except an individual or
individuals who have annual income that is not more than the
qualifying median income;
(e)
Agree to pay a penalty to the director of
housing
and
development
for violation of the agreement required by division (B)(2)(c) of this
section that
,
subject to division (F)(2) of section 122.631 of the Revised Code,
equals
ninety
thousand dollars
the
amount of the grant attributable to the property
,
less
eighteen
thousand dollars
one-third
of that amount
multiplied
by the number of full years the individual or individuals owned the
property.
(f)
Agree that the director of
housing
and
development
is a third-party beneficiary of the purchase agreement;
(g)
Agree to participate in the applicant's
qualifying
financial
literacy program;
(h)
Agree to
annually
certify
to the director of
housing
and
development
or the director's designee
,
upon
the request of the director anytime
during
the period described by division (B)(2)(c) of this section, that the
individual or individuals own and occupy the qualifying residential
property, and that no part of the property is being rented to another
individual for use as a dwelling.
(3)
That qualifying residential property on which grant funds are spent
shall be sold for not more than
one
two
hundred
eighty
twenty
thousand
dollars per property.
(4)
That qualifying residential property on which grant funds are spent
shall not be sold without a
deed
restriction prohibiting
promissory
note, secured by a mortgage, both executed by the purchaser in favor
of the director of housing and development. The note shall require a
payment to the director of housing and development upon
the
sale of the property to a person that is not an individual or
individuals who have annual income that is not more than the median
income for
twenty
fifteen
years
after the date of the property's first transfer from the applicant
following the use of grant funds
;
.
The payment shall be the amount of the grant attributable to the
property, less one-fifteenth of that amount multiplied by the number
of full years the individual or individuals owned the property. The
mortgage shall be subordinate to any mortgage securing a note
executed by the purchaser to purchase the property. The director of
housing and development may execute any documents necessary to
recognize that subordination or wholly or partially forgive amounts
due on a note executed pursuant to this division if doing so does not
grant a purchaser an undue windfall or hinder the WHO program's
objectives of increasing the supply of safe and affordable
owner-occupied housing. The director shall allow a subsequent
purchaser that is an individual or individuals who have annual income
that is not more than the qualifying median income to assume
liability on the note when purchasing the property.
(5)
That the applicant shall repay all grant funds expended on any
expenses other than the construction or rehabilitation of qualifying
residential property
or financial literacy counseling required under division (B)(6) of
this section,
or on qualifying residential property that is not sold to an
individual or individuals who meet the requirements described in
division (B)(2) of this section or that is sold without the
deed
restriction
promissory
note and mortgage
described
in division (B)(4) of this section;
(6)
That the applicant shall provide financial
qualifying
literacy
counseling,
over
a minimum of one year,
delivered
by the qualifying counseling provider,
to
each purchaser of qualifying residential property on which grant
funds are spent. An applicant may provide information regarding its
qualifying
financial
literacy program to the director of
housing
and
development
for review as part of the application or prior to application;
(7)
That the applicant shall report to the department of
housing
and
development
the date when the qualifying residential property that is the subject
of the application is sold by the applicant.
(8)
That, if grant funds are received, the qualifying residential
property that is the subject of the application shall not be the
subject of an application for a tax credit under section 122.633 of
the Revised Code.
(C)
The director of development is granted authority and standing to sue
for the enforcement of a deed restriction described in division
(B)(4) of this section.
(D)(1)
(C)(1)
The
director may adopt rules in accordance with Chapter 119. of the
Revised Code as necessary to administer the grant program. Such rules
may include the following:
(a)
Application forms, deadlines, and procedures;
(b)
Criteria for evaluating and prioritizing applications;
(c)
Guidelines for promoting an even geographic distribution of grants
throughout the state
;
(d)
Guidelines to determine the value of qualifying residential property
located in a building with other uses and the total value of that
building
.
(2)
Any grants repaid under this section shall be credited to the welcome
home Ohio fund.
Sec.
122.633.
(A)
As used in this section, "eligible developer" means any of
the following:
(1)
A nonprofit corporation, as defined in section 1702.01 of the Revised
Code, based in this state with a primary activity of the development
and preservation of affordable housing;
(2)
A limited partnership or domestic limited partnership, as defined in
section 1782.01 of the Revised Code, in which a general partner is a
nonprofit corporation based in this state, a primary activity of
which is the development and preservation of affordable housing;
(3)
A limited liability company, as defined in section 1706.01 of the
Revised Code, in which the manager is a nonprofit corporation based
in this state, a primary activity of which is the development and
preservation of affordable housing;
(4)
A community improvement corporation, as defined in section 1724.01 of
the Revised Code, or a community urban redevelopment corporation, as
defined in section 1728.01 of the Revised Code.
(B)
An electing subdivision or eligible developer that rehabilitates or
constructs a unit of qualifying residential property and sells the
property to an individual or individuals for the individual's or
individuals' occupancy may apply to the director of
housing
and
development
for a nonrefundable credit against the tax levied under section
5726.02 or 5747.02 of the Revised Code, provided the rehabilitation
or construction and the sale comply with division (C) of this
section. The credit application shall be made on forms prescribed by
the director. The credit shall equal ninety thousand dollars or
one-third
ninety
per cent
of
the cost to rehabilitate or construct the property, whichever is
less.
(C)
An application for a credit authorized by division
(C)
(B)
of
this section shall certify all of the following:
(1)
That the rehabilitation or construction of qualifying residential
property that is the subject of the application was completed
according to all applicable construction and design standards;
(2)
That each qualifying residential property that is the subject of the
application was sold to an individual or individuals who have annual
income that is not more than the qualifying median income,
demonstrated the financial means to purchase the qualifying
residential property, and agreed to all of the following in the
purchase agreement:
(a)
To maintain ownership of the qualifying residential property, occupy
it as a primary residence, and not to rent any portion of the
property to another individual for use as a dwelling, for at least
five
three
years
following the date of purchase;
(b)
Not to sell the qualifying residential property to a purchaser other
than an individual or individuals who have annual income that is no
more than the qualifying median income for at least
twenty
fifteen
years
after the date of purchase;
(c)
To pay a penalty to the director of
housing
and
development
for violation of the agreement required by division (C)(2)(a) of this
section that
,
subject to division (F)(3) of section 122.631 of the Revised Code,
equals the total amount of the tax credit authorized by this section
and attributable to the qualifying residential property purchased by
the individual, reduced by
twenty
per cent
one-third
of
that amount for each full year the individual or individuals owned
the property;
(d)
That the director of
housing
and
development
is a third-party beneficiary of the purchase agreement;
(e)
To participate in the applicant's
qualifying
financial
literacy program;
(f)
Agree to
annually
certify
to the director of
housing
and
development
or the director's designee
,
upon
the request of the director anytime
during
the period described by division (C)(2)(a) of this section, that the
individual or individuals own and occupy the qualifying residential
property, and that no part of the property is being rented to another
individual for use as a dwelling.
(3)
That the qualifying residential property that is the subject of the
application was sold for not more than
one
two
hundred
eighty
twenty
thousand
dollars;
(4)
That the
purchaser
of the
qualifying
residential property that is the subject of the application
was
transferred with a deed restriction prohibiting
executed
a promissory note, conditional upon the award of a tax credit
authorized by division (B) of this section and secured by a mortgage
to be recorded only upon such award, in favor of the director of
housing and development. The note shall require a payment to the
director of housing and development upon
the
sale of the property to a person other than an individual or
individuals who have annual income that is not more than the
qualifying median income for at least
twenty
fifteen
years
after the date of transfer.
The
payment shall be the amount of the tax credit attributable to the
property, less one-fifteenth of that amount multiplied by the number
of full years the individual or individuals owned the property. The
mortgage shall be subordinate to any mortgage securing a note
executed by the purchaser to purchase the property. The director of
housing and development may execute any documents necessary to
recognize that subordination or wholly or partially forgive amounts
due on a note executed pursuant to this division if doing so does not
grant a purchaser an undue windfall or hinder the WHO program's
objectives of increasing the supply of safe and affordable
owner-occupied housing. The director shall allow a subsequent
purchaser that is an individual or individuals who have annual income
that is not more than the qualifying median income to assume
liability on the note when purchasing the property.
(5)
That the applicant provides
a
minimum of one year of
qualifying
financial
literacy counseling
,
delivered by a qualifying counseling provider,
to each purchaser of qualifying residential property that is the
subject of the application. An applicant may provide information
regarding its
qualifying
financial
literacy program to the director of
housing
and
development
for review as part of the application or prior to application
;
.
(6)
That the applicant shall report to the department of
housing
and
development
the date when the qualifying residential property that is the subject
of the application is sold by the applicant.
(7)
That the qualifying residential property that is the subject of the
application was not rehabilitated or constructed using grant funds
received under section 122.632 of the Revised Code.
(D)
The director of development is granted authority and standing to sue
for the enforcement of a deed restriction described in division
(C)(4) of this section.
(E)(1)
(D)(1)
Subject
to division
(E)(2)
(D)(2)
of
this section, if the director determines that the applicant qualifies
for a credit under this section, the director shall issue a tax
credit certificate to the applicant identified with a unique number
and listing the amount of the credit that is eligible to be
transferred or claimed pursuant to division
(E)(3)
(D)(3)
or
(F)
(E)
of
this section.
(2)
The total amount of tax credits issued by the director under this
section shall not exceed twenty-five million dollars in any fiscal
year, and no tax credits shall be issued after June 30, 2025.
(3)
A person granted a certificate pursuant to division
(E)(1)
(D)(1)
of
this section may claim the credit against the tax levied under
section 5726.02 of the Revised Code or against the person's aggregate
tax liability under section 5747.02 of the Revised Code for the
taxable year in which the certificate is issued. The taxpayer shall
claim the credit in the order prescribed by section 5726.98 or
5747.98 of the Revised Code, as applicable. Any unused amount may be
carried forward for the following five taxable years. If the person
is a pass-through entity, any taxpayer that is a direct or indirect
investor in the pass-through entity on the last day of the entity's
taxable year may claim the taxpayer's proportionate or distributive
share of the credit against the taxpayer's aggregate amount of tax
levied under section 5747.02 of the Revised Code.
A
taxpayer claiming a credit under this section shall submit a copy of
the certificate with the taxpayer's return or report.
(F)
(E)
A
person granted a certificate pursuant to division
(E)(1)
(D)(1)
of
this section may transfer the right to claim all or part of the
credit reflected on the certificate to another person.
To
effectuate the transfer, the transferor shall notify the tax
commissioner, in writing, that the transferor is transferring the
right to claim all or part of the remaining credit stated on the
certificate. The transferor shall identify in that notification the
certificate's number, the name and the tax identification number of
the transferee, the amount of the remaining credit transferred to the
transferee, and, if applicable, the amount of remaining credit
retained by the transferor.
The
transferee may claim the amount of the credit received under this
division against the tax levied under section 5726.02 of the Revised
Code or against the person's aggregate tax liability under section
5747.02 of the Revised Code for the taxable year in the same manner
and for the same taxable years as it may be claimed by a person under
division
(E)(3)
(D)(3)
of
this section.
Any
person to which a credit has been transferred under this division may
transfer the right to claim all or part of the transferred credit
amount to any other person, in the same manner prescribed by this
division for the initial transfer, including that any such transfer
be reported by the transferor to the tax commissioner as described in
this division.
Transferring
a credit under this division does not extend the taxable years for
which the credit may be claimed or number of years for which the
unclaimed credit amount may be carried forward.
(G)
(F)
The
director may adopt rules in accordance with Chapter 119. of the
Revised Code as necessary to administer the tax credits authorized by
this section. Such rules may include the following:
(1)
Application forms, deadlines, and procedures;
(2)
Criteria for evaluating and prioritizing applications;
(3)
Guidelines for promoting an even geographic distribution of credits
throughout the state.
Sec.
122.634.
(A)
For the purposes of this section, "accessory dwelling unit"
means a self-contained dwelling unit, to which all of the following
apply:
(1)
The unit is designed for occupancy by one family for living and
sleeping purposes;
(2)
The unit provides complete independent living facilities, including
its own entrance, kitchen, bathroom, and sleeping area;
(3)
The unit is located on the same lot as a larger single-family
dwelling that serves as the principal use of the lot;
(4)
The use of the unit is subordinate and incidental to the larger
single-family dwelling.
(B)
The department of housing and development shall create, publish, and
maintain the Ohio housing toolkit on the department's publicly
accessible web site. The toolkit shall include resources to support
local government officials and housing stakeholders in navigating
housing development and community planning, including all of the
following:
(1)
An interface that identifies and links to all local comprehensive
plans and zoning codes that apply to a particular address entered by
the user;
(2)
Expert guidance and best practices for navigating local comprehensive
plans and zoning codes, including project checklists and templates
for permit applications;
(3)
A standardized zoning code framework that may be used by local
governments as a model to streamline the zoning process and
facilitate the development of housing projects;
(4)
Information and guidance specific to alternative forms of housing,
such as accessory dwelling units, tiny homes, modular housing, and
manufactured housing, including a list of political subdivisions in
this state that allow alternative forms of housing, by type, and
links to local building, zoning, and fire code provisions specific to
alternative forms of housing.
(C)
The department shall establish an administrative support hotline to
provide guidance, best practices, and technical support for local
governments in adopting, implementing, and managing new or amended
zoning codes.
Sec.
122.635.
(A)
The department of housing and development shall create, publish, and
maintain the Ohio housing dashboard on the department's publicly
accessible web site. At minimum, the dashboard shall include data for
all of the following:
(1)
Home prices;
(2)
Rental rates and rental vacancy rates;
(3)
Housing inventory levels;
(4)
Homeownership rates;
(5)
Foreclosure rates;
(6)
Population growth.
(B)
The department shall format the Ohio housing dashboard in a manner
that allows users to sort data based on location, age, race and
ethnicity, household size, employment status, and household income.
(C)
The dashboard shall include a description of the data sources and
methodology used to complete the dashboard.
Sec.
122.64.
(A)
There is hereby established in the
department
of housing and
development
services
agency
a
business services division. The division shall be supervised by a
deputy director appointed by the director of
housing
and
development
services
.
The
division is responsible for the administration of the state economic
development financing programs established pursuant to sections
122.17 and 122.18, sections 122.39 and 122.41 to 122.62, and Chapter
166. of the Revised Code.
(B)
The director of
housing
and
development
services
shall:
(1)
Receive applications for assistance pursuant to sections 122.39 and
122.41 to 122.62 and Chapter 166. of the Revised Code. The director
shall process the applications.
(2)
With the approval of the director of administrative services,
establish salary schedules for employees of the various positions of
employment with the division and assign the various positions to
those salary schedules;
(3)
Employ and fix the compensation of financial consultants, appraisers,
consulting engineers, superintendents, managers, construction and
accounting experts, attorneys, and other agents for the assistance
programs authorized pursuant to sections 122.17 and 122.18, sections
122.39 and 122.41 to 122.62, and Chapter 166. of the Revised Code as
are necessary;
(4)
Supervise the administrative operations of the division;
(5)
On or before the first day of October in each year, make an annual
report of the activities and operations under assistance programs
authorized pursuant to sections 122.39 and 122.41 to 122.62 and
Chapter 166. of the Revised Code for the preceding fiscal year to the
governor and the general assembly. Each such report shall set forth a
complete operating and financial statement covering such activities
and operations during the year in accordance with generally accepted
accounting principles and shall be audited by a certified public
accountant. The director of
housing
and
development
services
shall
transmit a copy of the audited financial report to the office of
budget and management.
Sec.
122.641.
(A)(1)
There is hereby created the lakes in economic distress revolving loan
program to assist businesses and other entities that are adversely
affected due to economic circumstances that result in the declaration
of a lake as an area under economic distress by the director of
natural resources under division (A)(2) of this section. The director
of
housing
and
development
services
shall
administer the program.
(2)
The director of natural resources shall do both of the following:
(a)
Declare a lake as an area under economic distress. The director shall
declare a lake as an area under economic distress based solely on
environmental or safety issues, including the closure of a dam for
safety reasons.
(b)
Subsequently declare a lake as an area no longer under economic
distress when the environmental or safety issues, as applicable, have
been resolved.
(B)
There is hereby created in the state treasury the lakes in economic
distress revolving loan fund. The fund shall consist of money
appropriated to it, all payments of principal and interest on loans
made from the fund, and all investment earnings on money in the fund.
The director of
housing
and
development
services
shall
use money in the fund to make loans under this section, provided that
the loans shall be zero interest loans during the time that an
applicable lake has been declared an area under economic distress
under division (A)(2)(a) of this section.
(C)
The director shall adopt rules in accordance with Chapter 119. of the
Revised that do both of the following:
(1)
Establish requirements and procedures for the making of loans under
this section, including all of the following:
(a)
Eligibility criteria;
(b)
Application procedures;
(c)
Criteria for approval or disapproval of loans, including a
stipulation that an applicant must demonstrate that the loan will
help to achieve long-term economic stability in the area;
(d)
Criteria for repayment of the loans, including the establishment of
an interest rate that does not exceed two points less than prime
after an applicable lake has been declared as an area no longer under
economic distress under division (A)(2)(b) of this section.
The
eligibility criteria established by the director shall not require
applicants to experience a reduction in gross revenue for a defined
period of greater than ten per cent.
Any
material provided to the
department
of housing and
development
services
agency
by
an applicant is not a public record for the purposes of section
149.43 of the Revised Code and shall remain confidential.
(2)
Establish any other provisions necessary to administer this section.
(D)
In administering the program, the director shall assist businesses
and other entities in determining the amount of loans needed.
Sec.
122.6510.
(A)
As used in this section, "federal act" means the "Small
Business Liability Relief and Brownfields Revitalization Act,"
115 Stat. 2356 (2002), 42 U.S.C. 9601 and 9604.
(B)
There is hereby created in the state treasury the Brownfields
Revolving Loan Fund. The Fund shall consist of all moneys received by
the state from repayments of loans made under the terms of the
federal act, and any other money transferred to the Fund. The Fund
may be used to make grants and loans by the
Director
of Development Services
director
of housing and development
.
All investment earnings of the Fund shall be credited to the Fund.
(C)
The Director shall administer moneys received into the Fund and
comply with all requirements imposed by the federal act in
administering the funds.
(D)
The Director may establish a schedule of fees and charges payable by
loan recipients to the Director for the administration of this
section.
Sec.
122.6511.
(A)
As used in this section and section 122.6512 of the Revised Code:
(1)
"Brownfield" means an abandoned, idled, or under-used
industrial, commercial, or institutional property where expansion or
redevelopment is complicated by known or potential releases of
hazardous substances or petroleum.
(2)
"Lead entity" means a county, township, municipal
corporation, port authority, conservancy district, park district or
other similar park authority, county land reutilization corporation,
or organization for profit.
(3)
"Remediation" means any action to contain, remove, or
dispose of hazardous substances or petroleum at a brownfield.
"Remediation" includes the acquisition of a brownfield,
demolition performed at a brownfield, and the installation or upgrade
of the minimum amount of infrastructure that is necessary to make a
brownfield operational for economic development activity.
(4)
"County land reutilization corporation" has the same
meaning as in section 1724.01 of the Revised Code.
(B)(1)
There is hereby created the brownfield remediation program to award
grants for the remediation of brownfield sites throughout Ohio. The
program shall be administered by the director of
housing
and
development
pursuant to this section and rules adopted pursuant to division
(B)(2) of this section.
(2)
The director shall adopt rules, under Chapter 119. of the Revised
Code, for the administration of the program. The rules shall include
provisions for determining project and project sponsor eligibility,
program administration, and any other provisions the director finds
necessary.
(C)(1)
There is hereby created in the state treasury the brownfield
remediation fund. The fund shall consist of moneys appropriated to it
by the general assembly, and investment earnings on moneys in the
fund shall be credited to the fund.
The
director shall reserve funds from each appropriation to the fund to
each county in the state. The amount reserved shall be one million
dollars per county, or, if an appropriation is less than eighty-eight
million dollars, a proportionate amount to each county. Amounts
reserved pursuant to this section are reserved for one calendar year
from the date of the appropriation. After one calendar year, the
funds shall be available pursuant to division (D) of this section.
(2)
A lead entity may submit an initial grant application for the use of
funds reserved under division (C)(1) of this section to the director.
The lead entity may later submit an amended application to the
director, and the director may accept and approve that application
for use of funds up to the amount reserved for that county.
(D)
Funds from an appropriation not reserved under division (C)(1) of
this section shall be available for grants to projects located
anywhere in the state, and grants from those funds shall be awarded
to qualifying projects on a first-come, first-served basis.
(E)
The amendments to this section by
this
act
H.B.
315 of the 135th general assembly
apply
to new projects that are applied for and awarded funding by the
director of
housing
and
development
on and after
the
effective date of this amendment
July
1, 2025
.
Projects that are applied for or were applied for under this section
prior to
that
date
July
1, 2025,
shall
be governed by this section as it existed prior to
that
date
July
1, 2025
.
Sec.
122.6512.
(A)(1)
There is hereby created the building demolition and site
revitalization program to award grants for the demolition of
commercial and residential buildings and revitalization of
surrounding properties on sites that are not brownfields. The program
shall be administered by the director of
housing
and
development
pursuant to this section and rules adopted pursuant to division
(A)(2) of this section.
(2)
The director shall adopt rules, under Chapter 119. of the Revised
Code, for the administration of the program. The rules shall include
provisions for determining project and project sponsor eligibility,
program administration, and any other provisions the director finds
necessary.
(3)
The director shall ensure that the program is operational and
accepting proposals for grants not later than ninety days after
September 30, 2021.
(4)
To streamline funding through the program, each county shall have one
lead entity designated in accordance with the following:
(a)
If the county has a population of less than one hundred thousand
according to the most recent federal decennial census, the director
shall select the lead entity from a list of recommendations made by
the board of county commissioners of the county. The board shall
submit a lead entity letter of intent and any other documentation
required by the director in order for the director to select a lead
entity for that county.
(b)
If the county has a population of one hundred thousand or more
according to the most recent federal decennial census and the county
does not have a county land reutilization corporation, the director
shall select the lead entity from a list of recommendations made by
the board of county commissioners of the county. The board shall
submit a lead entity letter of intent and any other documentation
required by the director in order for the director to select a lead
entity for that county.
(c)
If the county has a population of one hundred thousand or more
according to the most recent federal decennial census and the county
has a county land reutilization corporation, the county land
reutilization corporation is the lead entity for that county.
(5)
The lead entity of each county shall submit all grant applications
for that county. The lead entity shall submit with a grant
application any agreements executed between the lead entity with
other recipients that will receive grant money through the lead
entity, if applicable. Such recipients may include local governments,
nonprofit organizations, community development corporations, regional
planning commissions, county land reutilization corporations, and
community action agencies.
(B)(1)
There is hereby created in the state treasury the building demolition
and site revitalization fund. The fund shall consist of moneys
appropriated to it by the general assembly, and investment earnings
on moneys in the fund shall be credited to the fund.
(2)
The director shall reserve funds from each appropriation to the fund
to each county in the state. The amount reserved shall be five
hundred thousand dollars per county, or, if an appropriation is less
than forty-four million dollars, a proportionate amount to each
county. Amounts reserved pursuant to this section are reserved for
one calendar year from the date of the appropriation. After one
calendar year, the funds shall be available pursuant to division
(B)(3) of this section.
(3)
Funds from an appropriation not reserved under division (B)(2) of
this section shall be available for grants to projects located
anywhere in the state, and grants from those funds shall be awarded
to qualifying projects on a first-come, first-served basis. Grants
awarded pursuant to this division shall be limited to seventy-five
per cent of a project's total cost.
Sec.
122.67.
There
is hereby created in the
department
of housing and
development
services
agency
the
community services division. The director of
housing
and
development
services
shall
employ and fix the compensation of professional and technical
unclassified personnel as necessary to carry out the provisions of
sections 122.66 to 122.701 of the Revised Code.
Sec.
122.68.
The
community services division shall:
(A)
Administer all federal funds appropriated to the state from the
"Community Services Block Grant Act," 95 Stat. 511, 42
U.S.C.A. 9901, and comply with requirements imposed by that act in
its application for, and administration of, the funds;
(B)
Designate community action agencies to receive community services
block grant funds;
(C)(1)
Subject to division (C)(2) of this section, disburse at least
ninety-one per cent of the funds received in the state from the
"Community Services Block Grant Act" to community action
agencies that comply with the requirements of section 122.69 of the
Revised Code and migrant and seasonal farm worker organizations that
are not designated community action agencies but which provide the
services described in division (B)(1) of section 122.69 of the
Revised Code;
(2)
Disburse at least four and one-half per cent of the funds received in
the state from the "Community Services Block Grant Act" to
one or more nonprofit organizations to which both of the following
apply:
(a)
The organization or organizations were incorporated under the laws of
this state before January 1, 2015.
(b)
The primary purpose of the organization or organizations is to
provide training and technical assistance to community action
agencies that comply with the requirements of section 122.69 of the
Revised Code.
(D)
Provide technical assistance to community action agencies to improve
program planning, development, and administration;
(E)
Conduct yearly performance assessments, according to criteria
determined by
department
of housing and
development
services
agency
rule,
to determine whether community action agencies are in compliance with
section 122.69 of the Revised Code;
(F)
Annually prepare and submit to the United States secretary of health
and human services, the governor, the president of the Ohio senate,
and the speaker of the Ohio house of representatives, a comprehensive
report that includes:
(1)
Certification that all community action agencies designated to
receive funds from the "Community Services Block Grant Act"
are in compliance with section 122.69 of the Revised Code;
(2)
A program plan for the next federal fiscal year that has been made
available for public inspection and that details how community
services block grant funds will be disbursed and used during that
fiscal year;
(3)
Information detailing how funds were expended for the current fiscal
year;
(4)
An audit of community services block grant expenditures for the
preceding federal fiscal year that is conducted in accordance with
generally accepted accounting principles by an independent auditing
firm that has no connection with any community action agency
receiving community services block grant funds or with any employee
of the division.
(G)
Serve as a statewide advocate for social and economic opportunities
for low-income persons.
Sec.
122.681.
(A)
Except as permitted by this section, or when required by federal law,
no person or government entity shall solicit, release, disclose,
receive, use, or knowingly permit or participate in the use of any
information regarding an individual receiving assistance pursuant to
a community services division program under sections 122.66 to
122.702 of the Revised Code for any purpose not directly related to
the administration of a division assistance program.
(B)
To the extent permitted by federal law, the division, and any entity
that receives division funds to administer a division program to
assist individuals, shall release information regarding an individual
assistance recipient to the following:
(1)
A government entity responsible for administering the assistance
program for purposes directly related to the administration of the
program;
(2)
A law enforcement agency for the purpose of any investigation,
prosecution, or criminal or civil proceeding relating to the
administration of the assistance program;
(3)
A government entity responsible for administering a children's
protective services program, for the purpose of protecting children;
(4)
Any appropriate person in compliance with a search warrant, subpoena,
or other court order.
(C)
To the extent permitted by federal law and section 1347.08 of the
Revised Code, the division, and any entity administering a division
program, shall provide access to information regarding an individual
assistance recipient to all of the following:
(1)
The individual assistance recipient;
(2)
The authorized representative of the individual assistance recipient;
(3)
The legal guardian of the individual assistance recipient;
(4)
The attorney of the individual assistance recipient.
(D)
To the extent permitted by federal law, the division, and any entity
administering a division program, may do either of the following:
(1)
Release information about an individual assistance recipient if the
recipient gives voluntary, written authorization;
(2)
Release information regarding an individual assistance recipient to a
state, federal, or federally assisted program that provides cash or
in-kind assistance or services directly to individuals based on need.
(E)
The community services division, or an entity administering a
division program, shall provide, at no cost, a copy of each written
authorization to the individual who signed it.
(F)
The
department
of housing and
development
services
agency
may
adopt rules defining who may serve as an individual assistance
recipient's authorized representative for purposes of division (C)(2)
of this section.
Sec.
122.69.
(A)
Any nonprofit agency or organization seeking designation as a
community action agency by the community services division shall
obtain the endorsement of the chief elected officials of at least
two-thirds of the municipal corporations and the counties within the
community to be served by the agency or organization.
(B)
Any nonprofit agency or organization that receives the endorsement
provided for in division (A) of this section shall be designated by
the division as the community action agency for the community it
serves and shall receive community services block grant funds for any
period of time that the nonprofit agency or organization:
(1)
Provides a range of services and opportunities having a measurable
and potentially major impact on the causes of poverty in the
community or those areas of the community where poverty is a
particularly acute problem. These activities may include but shall
not be limited to:
(a)
Providing activities designed to assist low-income persons, including
low-income persons who are elderly and who have disabilities, to:
(i)
Secure and maintain meaningful employment, training, work experience,
and unsubsidized employment;
(ii)
Attain an adequate education;
(iii)
Make better use of available income;
(iv)
Obtain and maintain adequate housing and a suitable living
environment;
(v)
Obtain emergency assistance through loans or grants to meet immediate
and urgent individual and family needs, including the need for health
services, nutritious food, housing, and employment-related
assistance;
(vi)
Remove obstacles and solve personal and family problems that block
the achievement of self-sufficiency;
(vii)
Achieve greater participation in the affairs of the community;
(viii)
Undertake family planning, consistent with personal and family goals
and religious and moral convictions;
(ix)
Obtain energy assistance, conservation, and weatherization services.
(b)
Providing, on an emergency basis, supplies and services, nutritious
foodstuffs, and related services necessary to counteract conditions
of starvation and malnutrition among low-income persons;
(c)
Coordinating and establishing links between government and other
social services programs to assure the effective delivery of services
to low-income individuals;
(d)
Providing child care services, nutrition and health services,
transportation services, alcoholism and narcotic addiction prevention
and rehabilitation services, youth development services, and
community services to persons who are elderly and who have
disabilities;
(e)
Encouraging entities in the private sector to participate in efforts
to ameliorate poverty in the community.
(2)
Annually submits to the division a program plan and budget for use of
community services block grant funds for the next federal fiscal
year. At least ten days prior to its submission to the division, a
copy of the program plan and budget shall be made available to the
chief elected officials of the municipal corporations and counties
within the service area in order to provide them the opportunity to
review and comment upon such plan and budget.
(3)
Composes its board of directors in compliance with section (c)(3) of
section 675 of the "Community Services Block Grant Act," 95
Stat. 1609, 42 U.S.C.A. 9904, except that the board shall consist of
not less than fifteen nor more than thirty-three members;
(4)
Complies with the prohibitions against discrimination and political
activity, as provided in the "Community Services Block Grant
Act";
(5)
Complies with fiscal and program requirements established by
department
of housing and
development
services
agency
rule.
Sec.
122.70.
The
board of directors of a community action agency shall:
(A)
Select, appoint, and may remove the executive director of the
community action agency;
(B)
Approve contracts, annual program budgets, and policies of the
community action agency;
(C)
Advise the elected officials of any political subdivision located
within its service area, and state and federal elected officials who
represent its service area, of the nature and extent of poverty
within its community, and advise them of any needed changes;
(D)
Convene public meetings to provide community members the opportunity
to comment on public policies and programs to reduce poverty;
(E)
Annually evaluate the policies and programs of the community action
agency according to criteria determined by
department
of housing and
development
services
agency
rule;
(F)
Submit the results of the evaluation required by division (E) of this
section, along with recommendations for improved administration of
the community action agency, to the community services division;
(G)
Adopt a code of ethics for the board of directors and the employees
of the community action agency;
(H)
Adopt written policies describing all of the following:
(1)
How the community action agency is to expend and distribute the
community services block grant funds that it receives from the
division under sections 122.68 and 122.69 of the Revised Code;
(2)
The salary, benefits, travel expenses, and any other compensation
that persons are to receive for serving on the community action
agency's board of directors;
(3)
The operating procedures to be used by the board to conduct its
meetings, to vote on all official business it considers, and to
provide notice of its meetings.
(I)
Provide for the posting of notices in a conspicuous place indicating
that the code of ethics described in division (G) of this section and
the policies described in division (H) of this section are available
for public inspection at the community action agency during normal
business hours.
Sec.
122.701.
(A)
Prior to designating a new community action agency or rescinding a
community action agency's designation, the community services
division shall:
(1)
Determine whether a community action agency is in compliance with
section 122.69 of the Revised Code;
(2)
Consult with the chief elected officials of political subdivisions
located within a community action agency's service area, and, in
designating a new community action agency, obtain their endorsement
of the agency in accordance with division (A) of section 122.69 of
the Revised Code;
(3)
Hold at least one public meeting within a community action agency's
service area for the purpose of allowing citizens to comment on the
community action agency's delivery of services;
(4)
Evaluate the proposed service area of the community action agency,
and, as may be necessary, modify the boundaries of the service area
so that low-income persons in the area are adequately and efficiently
served.
(B)
After providing notice and hearing pursuant to sections 119.01 to
119.13 of the Revised Code, the director of
housing
and
development
services
:
(1)
May rescind the designation of a community action agency after
finding that the agency is not in compliance with any or all of the
provisions of section 122.69 of the Revised Code;
(2)
Shall rescind the designation of a community action agency upon
notification from the chief elected officials of more than one-half
of the municipal corporations and the counties within a community
currently served by a community action agency that such agency is not
endorsed by them and after finding that the agency is not in
compliance with section 122.69 of the Revised Code.
Any
agency whose designation is rescinded pursuant to this section may
appeal from an order rescinding such designation pursuant to section
119.12 of the Revised Code.
Sec.
122.71.
As
used in sections 122.71 to 122.83 of the Revised Code:
(A)
"Financial institution" means any banking corporation,
trust company, insurance company, savings and loan association,
building and loan association, or corporation, partnership, federal
lending agency, foundation, or other institution engaged in lending
or investing funds for industrial or business purposes.
(B)
"Project" means any real or personal property connected
with or being a part of an industrial, distribution, commercial, or
research facility to be acquired, constructed, reconstructed,
enlarged, improved, furnished, or equipped, or any combination
thereof, with the aid provided under sections 122.71 to 122.83 of the
Revised Code, for industrial, commercial, distribution, and research
development of the state.
(C)
"Mortgage" means the lien imposed on a project by a
mortgage on real property, or by financing statements on personal
property, or a combination of a mortgage and financing statements
when a project consists of both real and personal property.
(D)
"Mortgagor" means the principal user of a project or the
person, corporation, partnership, or association unconditionally
guaranteeing performance by the principal user of its obligations
under the mortgage.
(E)(1)
"Minority business enterprise" means an individual who is a
United States citizen and owns and controls a business, or a
partnership, corporation, or joint venture of any kind that is owned
and controlled by United States citizens, which citizen or citizens
are residents of this state and are members of one of the following
economically disadvantaged groups: Blacks or African Americans,
American Indians, Hispanics or Latinos, and Asians.
(2)
"Owned and controlled" means that at least fifty-one per
cent of the business, including corporate stock if a corporation, is
owned by persons who belong to one or more of the groups set forth in
division (E)(1) of this section, and that those owners have control
over the management and day-to-day operations of the business and an
interest in the capital, assets, and profits and losses of the
business proportionate to their percentage of ownership. In order to
qualify as a minority business enterprise, a business shall have been
owned and controlled by those persons at least one year prior to
being awarded a contract pursuant to this section.
(F)
"Community improvement corporation" means a corporation
organized under Chapter 1724. of the Revised Code.
(G)
"Ohio development corporation" means a corporation
organized under Chapter 1726. of the Revised Code.
(H)
"Minority contractors business assistance organization"
means an entity engaged in the provision of management and technical
business assistance to minority business enterprise entrepreneurs.
(I)
"Minority business supplier development council" means a
nonprofit organization established as an affiliate of the national
minority supplier development council.
(J)
"Regional economic development entity" means an entity that
is under contract with the director of
housing
and
development
to administer a loan program under this chapter in a particular area
of the state.
(K)
"Community development corporation" means a corporation
organized under Chapter 1702. of the Revised Code that consists of
residents of the community and business and civic leaders and that
has as a principal purpose one or more of the following: the
revitalization and development of a low- to moderate-income
neighborhood or community; the creation of jobs for low- to
moderate-income residents; the development of commercial facilities
and services; providing training, technical assistance, and financial
assistance to small businesses; and planning, developing, or managing
low-income housing or other community development activities.
Sec.
122.72.
(A)
There is hereby created the minority development financing advisory
board to assist in carrying out the programs created pursuant to
sections 122.71 to 122.83 and 122.87 to 122.89 of the Revised Code.
(B)
The board shall consist of ten members. The director of
housing
and
development
or the director's designee shall be a voting member on the board.
Seven members shall be appointed by the governor with the advice and
consent of the senate and selected because of their knowledge of and
experience in industrial, business, and commercial financing,
suretyship, construction, and their understanding of the problems of
minority business enterprises; one member also shall be a member of
the senate and appointed by the president of the senate, and one
member also shall be a member of the house of representatives and
appointed by the speaker of the house of representatives. With
respect to the board, all of the following apply:
(1)
Not more than four of the members of the board appointed by the
governor shall be of the same political party.
(2)
Each member shall hold office from the date of the member's
appointment until the end of the term for which the member was
appointed.
(3)
The terms of office for the seven members appointed by the governor
shall be for seven years, commencing on the first day of October and
ending on the thirtieth day of September of the seventh year, except
that of the original seven members, three shall be appointed for
three years and two shall be appointed for five years.
(4)
Any member of the board is eligible for reappointment.
(5)
Any member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of the predecessor's
term.
(6)
Any member shall continue in office subsequent to the expiration date
of the member's term until the member's successor takes office, or
until a period of sixty days has elapsed, whichever occurs first.
(7)
Before entering upon official duties as a member of the board, each
member shall take an oath as provided by Section 7 of Article XV,
Ohio Constitution.
(8)
The governor may, at any time, remove any member appointed by the
governor pursuant to section 3.04 of the Revised Code.
(9)
Notwithstanding section 101.26 of the Revised Code, members shall
receive their necessary and actual expenses while engaged in the
business of the board and shall be paid at the per diem rate of step
1 of pay range 31 of section 124.15 of the Revised Code.
(10)
Six members of the board constitute a quorum and the affirmative vote
of six members is necessary for any action taken by the board.
(11)
In the event of the absence of a member appointed by the president of
the senate or by the speaker of the house of representatives, either
of the following persons may serve in the member's absence:
(a)
The president of the senate or the speaker of the house of
representatives, whoever appointed the absent member;
(b)
A member of the senate or of the house of representatives of the same
political party as the absent member, as designated by the president
of the senate or the speaker of the house of representatives, whoever
appointed the absent member.
(12)
The board shall annually elect one of its members as chairperson and
another as vice-chairperson.
Sec.
122.73.
(A)
The minority development financing advisory board and the director of
housing
and
development
are invested with the powers and duties provided in sections 122.71
to 122.83 and 122.87 to 122.89 of the Revised Code, in order to
promote the welfare of the people of the state by encouraging the
establishment and expansion of minority business enterprises; to
stabilize the economy; to provide employment; to assist in the
development within the state of industrial, commercial, distribution,
and research activities required for the people of the state, and for
their gainful employment; or otherwise to create or preserve jobs and
employment opportunities, or improve the economic welfare of the
people of the state. It is hereby determined that the accomplishment
of those purposes is essential so that the people of the state may
maintain their present high standards of living in comparison with
the people of other states and so that opportunities for employment
and for favorable markets for the products of the state's natural
resources, agriculture, and manufacturing shall be improved. It
further is determined that it is necessary for the state to establish
the programs authorized under sections 122.71 to 122.83 and 122.87 to
122.89 of the Revised Code to establish the minority development
financing advisory board, and to invest it and the director of
housing
and
development
with the powers and duties provided in those sections.
(B)
The minority development financing advisory board shall do all of the
following:
(1)
Make recommendations to the director as to applications for
assistance pursuant to sections 122.71 to 122.83 and 122.87 to 122.89
of the Revised Code. The board may revise its recommendations to
reflect any changes in the proposed assistance made by the director.
(2)
Advise the director in the administration of sections 122.71 to
122.83 and 122.87 to 122.89 of the Revised Code.
(3)
Adopt bylaws to govern the conduct of the business of the board.
Sec.
122.74.
(A)(1)
The director of
housing
and
development
shall do all of the following:
(a)
Receive applications for assistance under sections 122.71 to 122.83
and 122.87 to 122.89 of the Revised Code and applications from surety
companies for bond guarantees under section 122.90 of the Revised
Code, and, after processing but subject to division (A)(2) of this
section, forward them to the minority development financing advisory
board together with necessary supporting information;
(b)
Receive the recommendations of the board and make a final
determination whether to approve the application for assistance;
(c)
Receive recommendations from a regional economic development entity
for loans made under section 122.76 of the Revised Code and make a
final determination, notwithstanding divisions (A)(1) and (2) of this
section, whether to approve the proposed loan;
(d)
Transmit the director's determinations to approve assistance to the
controlling board unless such assistance falls under section 122.90
of the Revised Code and has been previously approved by the
controlling board, together with any information the controlling
board requires for its review and decision as to whether to approve
the assistance.
(2)
The director is not required to submit any determination, data,
terms, or any other application materials or information to the
minority development financing advisory board when provision of the
assistance has been recommended to the director by a regional
economic development entity or when an application for a surety
company for bond guarantees under section 122.90 of the Revised Code
has been previously approved by the controlling board.
(B)
The director may do all of the following:
(1)
Fix the rate of interest and charges to be made upon or with respect
to moneys loaned or guaranteed by the director and the terms upon
which mortgages and lease rentals may be guaranteed and the rates of
charges to be made for them and make provisions for the operation of
the funds established by the director in accordance with this section
and sections 122.80, 122.88, and 122.90 of the Revised Code;
(2)
Loan and guarantee moneys from the fund established in accordance
with section 122.80 of the Revised Code pursuant to and in compliance
with sections 122.71 to 122.83 and 122.87 to 122.90 of the Revised
Code.
(3)
Acquire in the name of the director any property of any kind or
character in accordance with sections 122.71 to 122.83 and 122.87 to
122.90 of the Revised Code, by purchase, purchase at foreclosure, or
exchange on such terms and in such manner as the director considers
proper;
(4)
Make and enter into all contracts and agreements necessary or
incidental to the performance of the director's duties and the
exercise of the director's powers under sections 122.71 to 122.83 and
122.87 to 122.90 of the Revised Code;
(5)
Maintain, protect, repair, improve, and insure any property that the
director has acquired and dispose of it by sale, exchange, or lease
for the consideration and on the terms and in the manner as the
director considers proper, but the director shall not operate any
such property as a business except as the lessor of it;
(6)(a)
When the cost of any contract for the maintenance, protection,
repair, or improvement of any property held by the director, other
than compensation for personal services, involves an expenditure of
more than fifty thousand dollars, the director shall make a written
contract with the lowest responsive and responsible bidder in
accordance with section 9.312 of the Revised Code after advertisement
for not less than two consecutive weeks in a newspaper of general
circulation in the county where such contract, or some substantial
part of it, is to be performed, and in such other publications as the
director determines, which notice shall state the general character
of the work and the general character of the materials to be
furnished, the place where plans and specifications therefor may be
examined, and the time and place of receiving bids.
(b)
Each bid for a contract for the construction, demolition, alteration,
repair, or reconstruction of an improvement shall contain the full
name of every person interested in it and meet the requirements of
section 153.54 of the Revised Code.
(c)
Each bid for a contract, except as provided in division (B)(6)(b) of
this section, shall contain the full name of every person interested
in it and shall be accompanied by bond or certified check on a
solvent bank, in such amount as the director considers sufficient,
that if the bid is accepted a contract will be entered into and the
performance of the proposal secured.
(d)
The director may reject any and all bids.
(e)
A bond with good and sufficient surety, approved by the director,
shall be required of every contractor awarded a contract except as
provided in division (B)(6)(b) of this section, in an amount equal to
at least fifty per cent of the contract price, conditioned upon
faithful performance of the contract.
(7)
Employ or contract with financial consultants, appraisers, consulting
engineers, superintendents, managers, construction and accounting
experts, attorneys, and other employees and agents as are necessary
in the director's judgment and fix their compensation;
(8)
Receive and accept grants, gifts, and contributions of money,
property, labor, and other things of value to be held, used, and
applied only for the purpose for which the grants, gifts, and
contributions are made, from individuals, private and public
corporations, from the United States or any agency thereof, from the
state or any agency thereof, and from any political subdivision of
the state, and may agree to repay any contribution of money or to
return any property contributed or the value thereof at such times,
in amounts, and on terms and conditions, excluding the payment of
interest, as the director determines at the time the contribution is
made, and may evidence the obligations by notes, bonds, or other
written instruments;
(9)
Establish with the treasurer of state the funds provided in sections
122.80 and 122.88 of the Revised Code in addition to such funds as
the director determines are necessary or proper;
(10)
Adopt rules under Chapter 119. of the Revised Code necessary to
implement sections 122.71 to 122.83 and 122.87 to 122.90 of the
Revised Code.
(11)
Do all acts and things necessary or proper to carry out the powers
expressly granted and the duties imposed in sections 122.71 to 122.83
and 122.87 to 122.90 of the Revised Code.
(C)(1)
All expenses and obligations incurred by the director in carrying out
the director's powers and in exercising the director's duties under
sections 122.71 to 122.83 and 122.87 to 122.90 of the Revised Code
shall be payable solely from revenues or other receipts or income of
the director, from grants, gifts, and contributions, or funds
established in accordance with such sections. Such sections do not
authorize the director to incur indebtedness or to impose liability
on the state or any political subdivision of the state.
(2)
Financial statements and other data submitted to the director by any
corporation, partnership, or person in connection with financial
assistance provided under sections 122.71 to 122.83 and 122.87 to
122.90 of the Revised Code, or any information taken from such
statements or data for any purpose, shall not be open to public
inspection.
Sec.
122.75.
The
director of
housing
and
development
shall, for the minority business development loan program, the
minority business bonding program, and the minority business bond
guarantee program under sections 122.87 to 122.90 of the Revised
Code, do all of the following:
(A)
Hire employees, consultants, and agents and fix their compensation;
(B)
Adopt bylaws and rules for the regulation of the business of the
minority development financing advisory board;
(C)
Receive and accept grants, gifts, and contributions of money,
property, labor, and other things of value, to be held, used, and
applied only for the purpose for which the grants, gifts, and
contributions are made, from individuals, private and public
corporations, the United States or any agency of the United States,
the state or any agency of the state, and any political subdivision
of the state. The director may agree to repay any contribution of
money or to return any property contributed or its value at such
times, in amounts, and on terms and conditions, excluding the payment
of interest, as the director determines at the time the contribution
is made. The director may evidence the obligations by written
contracts, subject to section 122.76 of the Revised Code; provided,
that the director shall not thereby incur indebtedness of or impose
liability upon the state or any political subdivision.
(D)
Establish funds with the treasurer of state in addition to the
minority business bonding fund created under section 122.88 of the
Revised Code;
(E)
Invest money in the funds the director establishes pursuant to
division (D) of this section that is in excess of current needs, in
notes, bonds, or other obligations that are direct obligations of or
are guaranteed by the United States, or in certificates of deposit or
withdrawable accounts of banks, trust companies, or savings and loan
associations organized under the laws of this state or the United
States, and may credit the income or sell the investments at the
director's discretion;
(F)
Acquire any property of any kind or character in accordance with
sections 122.71 to 122.83 of the Revised Code, by purchase, purchase
at foreclosure, or exchange on terms and in a manner the director
considers proper;
(G)(1)
Maintain, protect, repair, improve, and insure any property the
director has acquired and dispose of it by sale, exchange, or lease
for the consideration and on terms and in a manner the director
considers proper. The director may not operate any property as a
business except as a lessor of the property. When the cost of any
contract for the maintenance, protection, repair, or improvement of
any property of the advisory board connected with the minority
business development loan program, other than compensation for
personal services, involves an expenditure of more than one thousand
dollars, the director shall enter into a written contract with the
lowest and best bidder after advertisement for not less than four
consecutive weeks in a newspaper of general circulation in the county
where the contract, or some substantial part of it, is to be
performed, and in other publications as the director determines. The
notice shall state the general character of the work and the general
character of the materials to be furnished, the place where plans and
specifications for the work and materials may be examined, and the
time and place of receiving bids.
(2)
Each bid for a contract for the construction, demolition, alteration,
repair, or reconstruction of an improvement shall contain the full
name of every person interested in it and meet the requirements of
section 153.54 of the Revised Code.
(3)
Each bid for a contract, except as provided in division (G)(2) of
this section, shall contain the full name of every person interested
in it and shall be accompanied by a bond or certified check on a
solvent bank, in the amount of ten per cent of the bid, that if the
bid is accepted a contract will be entered into and the performance
of its proposal secured. The director may reject any or all bids. A
bond with good and sufficient surety, approved by the director, shall
be required of all contractors in an amount equal to at least one
hundred per cent of the contract price, conditioned upon faithful
performance of the contract.
(H)
Expend money appropriated to the department of
housing
and
development
by the general assembly for the purposes of sections 122.71 to 122.83
and 122.87 to 122.90 of the Revised Code;
(I)
Do all acts and things necessary or proper to carry out the powers
expressly granted and the duties imposed in sections 122.71 to 122.83
and 122.87 to 122.90 of the Revised Code.
Sec.
122.76.
(A)
The director of
housing
and
development,
with controlling board approval, may lend funds to minority business
enterprises and to community improvement corporations, Ohio
development corporations, minority contractors business assistance
organizations, and minority business supplier development councils
for the purpose of loaning funds to minority business enterprises,
for the purpose of procuring or improving real or personal property,
or both, for the establishment, location, or expansion of industrial,
distribution, commercial, or research facilities in the state, and
for the purpose of contract financing, and to community development
corporations that predominantly benefit minority business enterprises
or are located in a census tract that has a population that is sixty
per cent or more minority, if the director determines, in the
director's sole discretion, that all of the following apply:
(1)
The project is economically sound and will benefit the people of the
state by increasing opportunities for employment, by strengthening
the economy of the state, or expanding minority business enterprises.
(2)
The proposed minority business enterprise borrower is unable to
finance the proposed project through ordinary financial channels at
comparable terms.
(3)
The value of the project is or, upon completion, will be at least
equal to the total amount of the money expended in the procurement or
improvement of the project.
(4)
The amount to be loaned by the director will not exceed seventy-five
per cent of the total amount expended in the procurement or
improvement of the project.
(5)
The amount to be loaned by the director will be adequately secured by
a first or second mortgage upon the project or by mortgages, leases,
liens, assignments, or pledges on or of other property or contracts
as the director requires, and such mortgage will not be subordinate
to any other liens or mortgages except the liens securing loans or
investments made by financial institutions referred to in division
(A)(3) of this section, and the liens securing loans previously made
by any financial institution in connection with the procurement or
expansion of all or part of a project.
(B)
Any proposed minority business enterprise borrower submitting an
application for assistance under this section shall not have
defaulted on a previous loan from the director, and no full or
limited partner, major shareholder, or holder of an equity interest
of the proposed minority business enterprise borrower shall have
defaulted on a loan from the director.
(C)
The proposed minority business enterprise borrower shall demonstrate
to the satisfaction of the director that it is able to successfully
compete in the private sector if it obtains the necessary financial,
technical, or managerial support and that support is available
through the director, the minority business development division of
the department of
housing
and
development,
or other identified and acceptable sources. In determining whether a
minority business enterprise borrower will be able to successfully
compete, the director may give consideration to such factors as the
successful completion of or participation in courses of study,
recognized by the department of higher education as providing
financial, technical, or managerial skills related to the operation
of the business, by the economically disadvantaged individual, owner,
or partner, and the prior success of the individual, owner, or
partner in personal, career, or business activities, as well as to
other factors identified by the director.
(D)
The director shall not lend funds for the purpose of procuring or
improving motor vehicles or accounts receivable.
Sec.
122.77.
(A)
The director of
housing
and
development
with controlling board approval may make loan guarantees to small
businesses and corporations for the purpose of guaranteeing loans
made to small businesses by financial institutions for the purpose of
procuring or improving real or personal property, or both, for the
establishment, location, or expansion of industrial, distribution,
commercial, or research facilities in the state, if the director
determines, in the director's sole discretion, that all of the
following apply:
(1)
The project is economically sound and will benefit the people of the
state by increasing opportunities for employment, by strengthening
the economy of the state, or expanding minority business enterprises.
(2)
The proposed small business borrower is unable to finance the
proposed project through ordinary financial channels at comparable
terms.
(3)
The value of the project is, or upon completion of it will be, at
least equal to the total amount of the money expended in the
procurement or improvement of the project and of which amount one or
more financial institutions or other governmental entities have
loaned not less than thirty per cent.
(4)
The amount to be guaranteed by the director will not exceed eighty
per cent of the total amount expended in the procurement or
improvement of the project.
(5)
The amount to be guaranteed by the director will be adequately
secured by a first or second mortgage upon the project, or by
mortgages, leases, liens, assignments, or pledges on or of other
property or contracts as the director shall require and that such
mortgage will not be subordinate to any other liens or mortgages
except the liens securing loans or investments made by financial
institutions referred to in division (A)(3) of this section, and the
liens securing loans previously made by any financial institution in
connection with the procurement or expansion of all or part of a
project.
(B)
The proposed small business borrower shall not have defaulted on a
previous loan or guarantee from the director, and no full or limited
partner, or major shareholder, or holder of any equity interest of
the proposed minority business enterprise borrower shall have
defaulted on a loan or guarantee from the director.
(C)
The proposed small business borrower shall demonstrate to the
satisfaction of the director that it is able to successfully compete
in the private sector if it obtains the necessary financial,
technical, or managerial support and that support is available
through the director, the minority business development division of
the department of
housing
and
development,
or other identified and acceptable sources. In determining whether a
small business borrower will be able to successfully compete, the
director may give consideration to such factors as the successful
completion of or participation in courses of study, recognized by the
department of higher education as providing financial, technical, or
managerial skills related to the operation of the business, by the
economically disadvantaged individual, owner, or partner, and the
prior success of the individual, owner, or partner in personal,
career, or business activities, as well as to other factors
identified by the director.
(D)
The director shall not guarantee funds for the purpose of procuring
or improving motor vehicles or accounts receivable.
Sec.
122.78.
Fees,
charges, rates of interest, times of payment of interest and
principal, and other terms, conditions, and provisions of the loans
and guarantees made by the director of
housing
and
development
pursuant to sections 122.71 to 122.83 and 122.87 to 122.90 of the
Revised Code shall be such as the director determines to be
appropriate and in furtherance of the purpose for which the loans and
guarantees are made, but the mortgage lien securing any money loaned
or guaranteed by the director may be subordinate to the mortgage lien
securing any money loaned or invested by a financial institution, but
shall be superior to that securing any money loaned or expended by
any other corporation or person. The funds used in making these loans
or guarantees shall be disbursed upon order of the director.
Sec.
122.79.
The
exercise of the powers granted by sections 122.71 to 122.83 and
122.87 to 122.90 of the Revised Code, will be in all respects for the
benefit of the people of the state, for the increase of their
commerce and prosperity, for the increase and expansion of minority
business enterprises, and for the improvement of conditions of
employment, and will constitute the performance of essential
governmental functions; therefore, the director of
housing
and
development
shall not be required to pay any taxes upon any property or assets
held by the director, or upon any property acquired or used by the
director under sections 122.71 to 122.83 and 122.87 to 122.90 of the
Revised Code, or upon the income from it, provided that this
exemption shall not apply to any property held by the director while
it is in the possession of a private person, partnership, or
corporation and used for private purposes for profit, in which case
such tax liability shall accrue to the private person, partnership,
or corporation.
Sec.
122.80.
There
is hereby created in the state treasury the minority business
enterprise loan fund. The fund shall consist of money deposited into
the fund from the facilities establishment fund pursuant to section
166.03 of the Revised Code and all money deposited into the fund
pursuant to section 122.81 of the Revised Code. The director of
housing
and
development
shall use the fund to pay operating costs of the minority development
financing advisory board, make loans to minority business enterprises
as authorized in division (A) of section 122.76 of the Revised Code,
loan guarantees to small businesses as authorized in division (A) of
section 122.77 of the Revised Code, and for transfer to the capital
access loan program fund established in section 122.601 of the
Revised Code to be used solely for minority business enterprises or
minority businesses certified by the minority business supplier
development council for deposits specified by division (D)(1)(b) of
section 122.603 of the Revised Code.
Sec.
122.81.
In
the event of a default with respect to any loan, guarantee, or lease,
the director of
housing
and
development
shall take such action as
he
the director
considers proper in the circumstances to enforce and protect the
rights of the director, and such actions as may be required, which
may include any appropriate action at law or in equity, enforcement
or waiver of any provision of any mortgage or security agreement or
lease, or reinstatement of any forfeited or canceled right, title, or
privilege.
Any
moneys received from the repayment of a loan, guarantee, or lease
authorized pursuant to sections 122.77 and 122.78 of the Revised
Code, and any moneys recovered in the event of a default with respect
to any such loan, guarantee, or lease, shall immediately be deposited
in the minority business enterprise loan fund.
Sec.
122.82.
All
moneys, funds, properties, and assets acquired by the director of
housing
and
development
shall be held by the director in trust to carry out the director's
powers and duties, shall be used as provided in sections 122.71 to
122.83 and 122.87 to 122.90 of the Revised Code, and shall at no time
be part of other public funds.
Sec.
122.84.
(A)
As used in this section:
(1)
"Ohio qualified opportunity fund" means a qualified
opportunity fund that holds one hundred per cent of its invested
assets in qualified opportunity zone property situated in an Ohio
opportunity zone.
In
the case of qualified opportunity zone property that is qualified
opportunity zone stock or qualified opportunity zone partnership
interest, the stock or interest is situated in an Ohio opportunity
zone only if, during all of the qualified opportunity fund's holding
period for such stock or interest, all of the use of the
corporation's or partnership's tangible property was in an Ohio
opportunity zone. In the case of qualified opportunity zone property
that is qualified opportunity zone business property, the property is
situated in an Ohio opportunity zone only if, during all of the
fund's holding period for such property, all of the use of the
property was in an Ohio opportunity zone.
All
terms used in division (A) of this section have the same meaning as
in 26 U.S.C. 1400Z-2, except that "all" shall be
substituted for "substantially all" wherever "substantially
all" appears in the definition of those terms or in the
definition of terms used in those terms.
(2)
"Ohio opportunity zone" means a qualified opportunity zone
designated in this state under 26 U.S.C. 1400Z-1 before, on, or after
October 17, 2019,
the effective date of the enactment of this section by H.B. 166 of
the 133rd general assembly.
(3)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined under section 1.14 of the
Revised Code.
(4)
"Investment period" means the six-month period from the
first day of January to the thirtieth day of June, or from the first
day of July to the thirty-first day of December.
(B)
A person that invests in one or more Ohio qualified opportunity funds
may apply to the director of
housing
and
development
for a nonrefundable credit against the tax levied under section
5725.18, 5726.02, 5729.03, or 5747.02 of the Revised Code. The
application shall be made on forms prescribed by the director. The
director shall accept and review applications submitted under this
section during two annual periods, the first of which begins on the
tenth day of January and ends after the first day of February, and
the second of which begins on the tenth day of July and ends after
the first day of August. If any of those dates fall on a day that is
not a business day, then the application period begins on or ends
after the next business day, as applicable. The credit shall equal
ten per cent of the amount of the person's investment in the fund
that the fund invested during the immediately preceding investment
period in projects located in Ohio opportunity zones.
The
person shall include the following information with the person's
application:
(1)
The amount of the person's investment in Ohio qualified opportunity
funds, arranged according to the amount invested in each such fund if
the person invested in more than one such fund;
(2)
A statement from an employee or officer of each Ohio qualified
opportunity fund identified by the person under division (B)(1) of
this section certifying the amount of the person's investment in the
fund and the amount of that investment the fund invested in projects
located in Ohio opportunity zones during the immediately preceding
investment period. The statement shall describe each project funded
by the investment and state each project's location and the portion
of the person's investment invested in each such project. Unless the
fund demonstrates otherwise to the director's satisfaction, the
amount of a person's investment that the fund invested in a project
located in an Ohio opportunity zone equals the same proportion of the
amount of the fund's investment in the project as the person's
investment in the fund bears to the total investment by all investors
in that fund on the date the fund makes the investment in the
project.
The
director shall review and process applications in the order in which
applications are received.
(C)(1)
Subject to division (C)(2) of this section, if the director
determines that the applicant qualifies for a credit under this
section, the director shall issue, within sixty days after the last
day on which an application may be submitted for that application
period, a tax credit certificate to the person identified with a
unique number and listing the amount of credit the director
determines is eligible to be claimed or transferred.
(2)
The total amount of tax credits issued by the director shall not
exceed:
(a)
Seventy-five million dollars for the fiscal biennium beginning July
1, 2021, and ending June 30, 2023;
(b)
Fifty million dollars for fiscal year 2024;
(c)
Twenty-five million dollars for each fiscal year thereafter.
The
director shall not issue certificates to a single applicant in any
fiscal biennium in an amount that exceeds two million dollars.
The
director may not issue a certificate under this section on the basis
of any investment for which a small business investment certificate
has been issued under section 122.86 of the Revised Code.
(3)
The credit may be claimed by a person under section 5725.38, 5726.61,
5729.21, or 5747.86 of the Revised Code, as applicable. A person that
is not subject to taxation under section 5725.18, 5726.02, 5729.03,
or 5747.02 of the Revised Code shall not claim the credit but if the
person is the applicant to which the certificate was initially
issued, the person may transfer the right to claim the credit under
division (D) of this section.
(D)
A taxpayer claiming a credit under this section shall submit a copy
of the certificate with the taxpayer's return or report.
(E)
A person that holds a wholly or partially unclaimed certificate
issued under this section may transfer the right to claim all or part
of the remaining credit to any other person. To effectuate the
transfer, the transferor must notify the tax commissioner, in
writing, that the transferor is transferring the right to claim all
or part of the remaining credit stated on the certificate. The
transferor shall identify in that notification the certificate's
number, the name and the tax identification number of the transferee,
the amount of remaining credit transferred to the transferee, and, if
applicable, the amount of remaining credit retained by the
transferor. The transferee may claim the amount of credit received
under this division pursuant to and in the manner required under
divisions (C)(3) and (D) of this section. Transferring a credit under
this division does not extend the taxable year or calendar year for
which the credit may be claimed or number of years for which the
unclaimed credit amount may be carried forward under section 5725.38,
5726.61, 5729.21, or 5747.86 of the Revised Code, as applicable.
Any
person to which a credit has been transferred under this division may
transfer the right to claim all or part of the transferred credit
amount to any other person, in the same manner prescribed by this
division for the initial transfer, including that any such transfer
be reported by the transferor to the tax commissioner as described in
this division.
(F)
On or before the first day of August each year, the director of
housing
and
development
shall submit a report to the governor, the president and minority
leader of the senate, and the speaker and minority leader of the
house of representatives on the tax credit program authorized under
this section. The report shall include the following information:
(1)
The number of projects funded by investments for which a tax credit
application was submitted under this section during the preceding
year, the Ohio opportunity zone in which each such project is
located, the number of projects funded by investments for which
certificates were allocated during the preceding year, a description
of each such project, and the composition of an Ohio qualified
opportunity fund's investments in each project funded by investments
for which a tax credit application was submitted under this section;
(2)
The number of persons that invested in an Ohio qualified opportunity
fund and applied for a tax credit based on the fund's investment in a
project during the preceding year, the name of the fund in which each
such investment was made, the number of persons allocated a credit
for such investments under this section, and the dollar amount of
those credits;
(3)
A map that shows the location of each Ohio opportunity zone and that
indicates which zones include existing or pending projects that are,
or will be, funded by tax credit-eligible investments.
Sec.
122.85.
(A)
As used in this section and in sections 5726.55, 5733.59, 5747.66,
and 5751.54 of the Revised Code:
(1)
"Tax credit-eligible production" means a motion picture or
broadway theatrical production certified by the director of
housing
and
development
under division (B) of this section as qualifying the production
company for a tax credit under section 5726.55, 5733.59, 5747.66, or
5751.54 of the Revised Code.
(2)
"Certificate owner" means a production company to which a
tax credit certificate is issued.
(3)
"Production company" means an individual, corporation,
partnership, limited liability company, or other form of business
association that is registered with the secretary of state and that
is producing a motion picture or broadway theatrical production.
(4)
"Eligible expenditures" means expenditures made after June
30, 2009, for goods or services purchased and consumed in this state
by a production company directly for the production of a tax
credit-eligible production, for postproduction activities, or for
advertising and promotion of the production.
"Eligible
expenditures" do not include qualified expenditures for which a
production company receives a tax credit under section 122.852 of the
Revised Code.
"Eligible
expenditures" include expenditures for cast and crew wages,
accommodations, costs of set construction and operations, editing and
related services, photography, sound synchronization, lighting,
wardrobe, makeup and accessories, film processing, transfer, sound
mixing, special and visual effects, music, location fees, and the
purchase or rental of facilities and equipment.
(5)
"Motion picture" means entertainment content created in
whole or in part within this state for distribution or exhibition to
the general public, including, but not limited to, feature-length
films; documentaries; long-form, specials, miniseries, series, and
interstitial television programming; interactive web sites; sound
recordings; videos; music videos; interactive television; interactive
games; video games; commercials; any format of digital media; and any
trailer, pilot, video teaser, or demo created primarily to stimulate
the sale, marketing, promotion, or exploitation of future investment
in either a product or a motion picture by any means and media in any
digital media format, film, or videotape, provided the motion picture
qualifies as a motion picture. "Motion picture" does not
include any television program created primarily as news, weather, or
financial market reports, a production featuring current events or
sporting events, an awards show or other gala event, a production
whose sole purpose is fundraising, a long-form production that
primarily markets a product or service or in-house corporate
advertising or other similar productions, a production for purposes
of political advocacy, or any production for which records are
required to be maintained under 18 U.S.C. 2257 with respect to
sexually explicit content.
(6)
"Broadway theatrical production" means a prebroadway
production, long run production, or tour launch that is directed,
managed, and performed by a professional cast and crew and that is
directly associated with New York city's broadway theater district.
(7)
"Prebroadway production" means a live stage production that
is scheduled for presentation in New York city's broadway theater
district after the original or adaptive version is performed in a
qualified production facility.
(8)
"Long run production" means a live stage production that is
scheduled to be performed at a qualified production facility for more
than five weeks, with an average of at least six performances per
week.
(9)
"Tour launch" means a live stage production for which the
activities comprising the technical period are conducted at a
qualified production facility before a tour of the original or
adaptive version of the production begins.
(10)
"Qualified production facility" means a facility located in
this state that is used in the development or presentation to the
public of theater productions.
(B)
For the purpose of encouraging and developing strong film and theater
industries in this state, the director of
housing
and
development
may certify a motion picture or broadway theatrical production
produced by a production company as a tax credit-eligible production.
In the case of a television series, the director may certify the
production of each episode of the series as a separate tax
credit-eligible production. A production company shall apply for
certification of a motion picture or broadway theatrical production
as a tax credit-eligible production on a form and in the manner
prescribed by the director. Each application shall include the
following information:
(1)
The name and telephone number of the production company;
(2)
The name and telephone number of the company's contact person;
(3)
A list of the first preproduction date through the last production
and postproduction dates in Ohio and, in the case of a broadway
theatrical production, a list of each scheduled performance in a
qualified production facility;
(4)
The Ohio production office or qualified production facility address
and telephone number;
(5)
The total production budget;
(6)
The total budgeted eligible expenditures and the percentage that
amount is of the total production budget of the motion picture or
broadway theatrical production;
(7)
In the case of a motion picture, the total percentage of the
production being shot in Ohio;
(8)
The level of employment of cast and crew who reside in Ohio;
(9)
A synopsis of the script;
(10)
In the case of a motion picture, the shooting script;
(11)
A creative elements list that includes the names of the principal
cast and crew and the producer and director;
(12)
Documentation of financial ability to undertake and complete the
motion picture or broadway theatrical production, including
documentation that shows that the company has secured funding equal
to at least fifty per cent of the total production budget;
(13)
Estimated value of the tax credit based upon total budgeted eligible
expenditures;
(14)
Estimated amount of state and local taxes to be generated in this
state from the production;
(15)
Estimated economic impact of the production in this state;
(16)
Any other information considered necessary by the director.
Within
ninety days after certification of a motion picture or broadway
theatrical production as a tax credit-eligible production, and any
time thereafter upon the request of the director, the production
company shall present to the director sufficient evidence of
reviewable progress. If the production company fails to present
sufficient evidence, the director may rescind the certification. If
the production of a motion picture or broadway theatrical production
does not begin within ninety days after the date it is certified as a
tax credit-eligible production, the director shall rescind the
certification unless the director finds that the production company
shows good cause for the delay, meaning that the production was
delayed due to unforeseeable circumstances beyond the production
company's control or due to action or inaction by a government
agency. Upon rescission, the director shall notify the applicant that
the certification has been rescinded. Nothing in this section
prohibits an applicant whose tax credit-eligible production
certification has been rescinded from submitting a subsequent
application for certification.
(C)(1)
A production company whose motion picture or broadway theatrical
production has been certified as a tax credit-eligible production may
apply to the director of
housing
and
development
on or after July 1, 2009, for a refundable credit against the tax
imposed by section 5726.02, 5733.06, 5747.02, or 5751.02 of the
Revised Code. The director in consultation with the tax commissioner
shall prescribe the form and manner of the application and the
information or documentation required to be submitted with the
application.
The
credit is determined as follows:
(a)
If the total budgeted eligible expenditures stated in the application
submitted under division (B) of this section or the actual eligible
expenditures as finally determined under division (D) of this
section, whichever is least, is less than or equal to three hundred
thousand dollars, no credit is allowed;
(b)
If the total budgeted eligible expenditures stated in the application
submitted under division (B) of this section or the actual eligible
expenditures as finally determined under division (D) of this
section, whichever is least, is greater than three hundred thousand
dollars, the credit equals thirty per cent of the least of such
budgeted or actual eligible expenditure amounts.
(2)
Except as provided in division (C)(4) of this section, if the
director of
housing
and
development
approves a production company's application for a credit, the
director shall issue a tax credit certificate to the company. The
director in consultation with the tax commissioner shall prescribe
the form and manner of issuing certificates. The director shall
assign a unique identifying number to each tax credit certificate and
shall record the certificate in a register devised and maintained by
the director for that purpose. The certificate shall state the amount
of the eligible expenditures on which the credit is based and the
amount of the credit. Upon the issuance of a certificate, the
director shall certify to the tax commissioner the name of the
production company to which the certificate was issued, the amount of
eligible expenditures shown on the certificate, the amount of the
credit, and any other information required by the rules adopted to
administer this section.
(3)
The amount of eligible expenditures for which a tax credit may be
claimed is subject to inspection and examination by the tax
commissioner or employees of the commissioner under section 5703.19
of the Revised Code and any other applicable law. Once the eligible
expenditures are finally determined under section 5703.19 of the
Revised Code and division (D) of this section, the credit amount is
not subject to adjustment unless the director determines an error was
committed in the computation of the credit amount.
(4)
No tax credit certificate may be issued before the completion of the
tax credit-eligible production. The amount of tax credit allowed per
fiscal year shall not exceed the sum of (a) fifty million dollars,
(b) the difference between the maximum credit amount for that fiscal
year under section 122.852 of the Revised Code and the amount the
director of
housing
and
development
elects to allow under this section pursuant to division (D)(1) of
section 122.852 of the Revised Code, and (c) the difference between
the maximum amount of credits that could have been awarded in the
previous fiscal year under this section and the amount actually
awarded. Out of that sum, five million dollars shall be reserved for
broadway theatrical productions, and the balance may be allowed for
any tax credit-eligible production. For any fiscal year in which less
than five million dollars of tax credits are allowed for broadway
theatrical productions, the amount of the five million dollars not
allowed and added to the maximum annual amount for the following
fiscal year shall be reserved for broadway theatrical productions in
the following fiscal year.
(5)
The director shall review and approve applications for tax credits in
two rounds each fiscal year. The first round of credits shall be
awarded not later than the last day of July of the fiscal year, and
the second round of credits shall be awarded not later than the last
day of the ensuing January. The amount of credits awarded in the
first round of applications each fiscal year shall not exceed
one-half of the maximum allowance for the fiscal year calculated
under division (C)(4) of this section, two million five hundred
thousand dollars of which shall be reserved for broadway theatrical
productions. For each round, the director shall rank applications on
the basis of the extent of positive economic impact each tax
credit-eligible production is likely to have in this state and the
effect on developing a permanent workforce in motion picture or
theatrical production industries in the state. For the purpose of
such ranking, the director shall give priority to tax-credit eligible
productions that are television series or miniseries due to the
long-term commitment typically associated with such productions. The
economic impact ranking shall be based on the production company's
total expenditures in this state directly associated with the tax
credit-eligible production. The effect on developing a permanent
workforce in the motion picture or theatrical production industries
shall be evaluated first by the number of new jobs created and second
by amount of payroll added with respect to employees in this state.
The
director shall approve productions in the order of their ranking,
from those with the greatest positive economic impact and workforce
development effect to those with the least positive economic impact
and workforce development effect.
(D)
A production company whose motion picture or broadway theatrical
production has been certified as a tax credit-eligible production
shall engage, at the company's expense, an independent certified
public accountant to examine the company's production,
postproduction, and advertising and promotion expenditures to
identify the expenditures that qualify as eligible expenditures. The
certified public accountant shall issue a report to the company and
to the director of
housing
and
development
certifying the company's eligible expenditures and any other
information required by the director. Upon receiving and examining
the report, the director may disallow any expenditure the director
determines is not an eligible expenditure. If the director disallows
an expenditure, the director shall issue a written notice to the
production company stating that the expenditure is disallowed and the
reason for the disallowance. Upon examination of the report and
disallowance of any expenditures, the director shall determine
finally the lesser of the total budgeted eligible expenditures stated
in the application submitted under division (B) of this section or
the actual eligible expenditures for the purpose of computing the
amount of the credit.
(E)
No credit shall be allowed under section 5726.55, 5733.59, 5747.66,
or 5751.54 of the Revised Code unless the director has reviewed the
report and made the determination prescribed by division (D) of this
section.
(F)
This state reserves the right to refuse the use of this state's name
in the credits of any tax credit-eligible motion picture production
or program of any broadway theatrical production.
(G)(1)
The director of
housing
and
development
in consultation with the tax commissioner shall adopt rules for the
administration of this section, including rules setting forth and
governing the criteria for determining whether a motion picture or
broadway theatrical production is a tax credit-eligible production;
activities that constitute the production or postproduction of a
motion picture or broadway theatrical production; reporting
sufficient evidence of reviewable progress; expenditures that qualify
as eligible expenditures; a schedule and deadlines for applications
to be submitted and reviewed; a competitive process for approving
credits based on likely economic impact in this state and development
of a permanent workforce in motion picture or theatrical production
industries in this state; consideration of geographic distribution of
credits; and implementation of the program described in division (H)
of this section. The rules shall be adopted under Chapter 119. of the
Revised Code.
(2)
To cover the administrative costs of the program, the director shall
require each applicant to pay an application fee equal to the lesser
of ten thousand dollars or one per cent of the estimated value of the
tax credit as stated in the application. The fees collected shall be
credited to the tax incentives operating fund created in section
122.174 of the Revised Code. All grants, gifts, fees, and
contributions made to the director for marketing and promotion of the
motion picture industry within this state shall also be credited to
the fund.
(H)
The director of
housing
and
development
shall establish a program for the training of Ohio residents who are
or wish to be employed in the film or multimedia industry. Under the
program, the director shall:
(1)
Certify individuals as film and multimedia trainees. In order to
receive such a certification, an individual must be an Ohio resident,
have participated in relevant on-the-job training or have completed a
relevant training course approved by the director, and have met any
other requirements established by the director.
(2)
Accept applications from production companies that intend to hire and
provide on-the-job training to one or more certified film and
multimedia trainees who will be employed in the company's tax
credit-eligible production;
(3)
Upon completion of a tax-credit eligible production, and upon the
receipt of any salary information and other documentation required by
the director, authorize a reimbursement payment to each production
company whose application was approved under division (H)(2) of this
section. The payment shall equal fifty per cent of the salaries paid
to film and multimedia trainees employed in the production.
Sec.
122.851.
(A)
As used in this section:
(1)
"Venture capital operating company" has the same meaning as
in 29 C.F.R. 2510.3-101.
(2)
"Ohio venture capital operating company" means a venture
capital operating company certified by the director of
housing
and
development
as having met the requirements prescribed by division (B) of this
section. A venture capital operating company is an Ohio venture
capital operating company only for so long as the certification is
valid.
(3)
"Ohio business" means a business that, in either the
calendar year in which a capital gain from the business is recognized
by the Ohio venture capital operating company or its direct or
indirect investors or the calendar year in which the Ohio venture
capital operating company distributes an equity interest or security
in the business, has its headquarters in this state and employs more
than one-half of the total number of its full-time equivalent
employees in this state. For the purpose of this section, an employee
is employed in this state if the business is required to withhold
income tax under section 5747.06 of the Revised Code for fifty per
cent or more of the compensation paid to the employee in either the
calendar year in which the Ohio venture capital operating company or
its direct or indirect investors recognize a capital gain from the
business or the calendar year in which the Ohio venture capital
operating company distributes an equity interest or security in the
business, as applicable.
(4)
"Qualifying interest" means a direct or indirect ownership
interest acquired through an investment of cash or cash equivalent
made in, or the provision of services to, a venture capital operating
company during the period for which it was certified as an Ohio
venture capital operating company.
(B)(1)
A venture capital operating company may apply to the director of
housing
and
development
for certification as an Ohio venture capital operating company if it
manages, or has capital commitments of, at least fifty million
dollars in active assets and at least two-thirds of its managing and
general partners are residents of Ohio under division (I) of section
5747.01 of the Revised Code. The director, in consultation with the
tax commissioner, shall prescribe the form and manner of the
application and the information or documentation required to be
submitted with the application.
(2)
The director shall review and make a determination with respect to
each application submitted under this division within sixty days of
receipt. The director shall grant certification to any applicant that
meets the criteria prescribed by this division. The director shall
decline certification of any applicant that does not meet such
criteria. The director shall notify the applicant and the tax
commissioner of the director's determination in writing.
(C)(1)
Certification as an Ohio venture capital operating company is valid
for as long as the company continues to qualify as a venture capital
operating company and meets the criteria prescribed by division
(B)(1) of this section.
(2)
A company that no longer qualifies as a venture capital operating
company or no longer meets the criteria prescribed by division (B)(1)
of this section shall notify the director within thirty days of the
date the company ceases to qualify.
(3)
Upon receiving such a notification or upon otherwise discovering that
an Ohio venture capital operating company no longer qualifies for
certification, the director shall issue a written notice of
revocation to the venture capital operating company and the tax
commissioner. The notice shall state the effective date of the
revocation, which shall be the date the company ceased to qualify for
certification as an Ohio venture capital operating company.
(4)
An Ohio venture capital operating company receiving such a notice may
contest the director's decision to revoke its certification or the
effective date of that revocation by submitting additional
information or documentation to the director and requesting
reconsideration in writing within thirty days of the notice of
revocation based on that information or documentation. The director
shall review and evaluate any such requests within thirty days of
receipt. The director shall notify the company and tax commissioner
in writing of the director's decision on the request, which shall not
be subject to appeal or further review.
(D)(1)
On or after the first day of January and on or before the first day
of February of each year, a company that is certified as an Ohio
venture capital operating company shall provide the following
information, on forms prescribed by the director of
housing
and
development,
to the director and the tax commissioner:
(a)
The name, social security or federal employer identification number,
and ownership percentage of each person with a qualifying interest in
the company;
(b)
The amount of capital gains generated during the portion of the
previous calendar year during which the company was certified as an
Ohio venture capital operating company;
(c)
A description of the company's investments that generated the capital
gains described in division (D)(1)(b) of this section, including the
date of sale and whether the investment was in an Ohio business;
(d)
The amount of, and basis in, any equity interests or securities
distributed to each investor, arranged by entity, while the company
was certified as an Ohio venture capital operating company and
whether the entity is an Ohio business;
(e)
Any other information the director, in consultation with the tax
commissioner, considers relevant and necessary to administer the
deduction allowed under division (A)(35) of section 5747.01 of the
Revised Code.
(2)
The director shall review the information submitted under division
(D)(1) of this section by an Ohio venture capital operating company
within sixty days of receipt. If the company generated capital gains
that qualify for the deduction allowed under division (A)(35) of
section 5747.01 of the Revised Code or distributed equity interests
or securities that, when sold, will qualify for the deduction once
income is recognized from its disposition, the director shall issue a
certificate to the company. The certificate shall include a unique
number and the following information:
(a)
The total amount of capital gains generated during the portion of the
year during which the company was certified as an Ohio venture
capital operating company;
(b)
The portion of the capital gains attributable to the company's
investments in Ohio businesses; and
(c)
The total amount of, and basis in, any equity interests or securities
distributed during the portion of the year during which the company
was certified as an Ohio venture capital operating company;
(d)
The portion of the distributed equity interests or securities
attributable to the company's investments in Ohio businesses;
(e)
The portion of the amounts described in divisions (D)(2)(a) and (b)
of this section attributable to each individual with a qualifying
interest in the company;
(f)
Any other information the director or tax commissioner considers
necessary for the administration of the deduction allowed under
division (A)(35) of section 5747.01 of the Revised Code.
(E)
An Ohio venture capital operating company shall provide each person
with a qualifying interest in the company with a copy of the
certificate issued under division (D) of this section and any other
documentation necessary to compute the adjustments under division
(A)(35) of section 5747.01 of the Revised Code. A pass-through entity
that receives a certificate issued under this division from an Ohio
venture capital operating company shall provide its investors with a
copy of the certificate and any other documentation necessary to
compute the adjustments under division (A)(35) of section 5747.01 of
the Revised Code.
A
taxpayer claiming a deduction under division (A)(35)(a) of section
5747.01 of the Revised Code shall provide, upon request of the tax
commissioner, a copy of that certificate. The taxpayer shall retain a
copy of the certificate for four years from the later of the final
filing date of the return on which the deduction was claimed or the
date the return on which the deduction was claimed is filed.
(F)
The director of
housing
and
development,
in consultation with the tax commissioner, may adopt rules in
accordance with Chapter 119. of the Revised Code as are necessary to
administer this section.
Sec.
122.852.
(A)
As used in this section:
(1)
"Capital improvement project" means a project that consists
of acquiring, constructing, rehabilitating, repairing, redeveloping,
expanding, or improving facilities located, or equipment used in this
state for production and postproduction of motion pictures or
broadway theatrical productions.
(2)
"Qualified expenditures" means expenditures incurred by a
production company after June 30, 2023, for goods and services
purchased and consumed directly for a capital improvement project.
"Qualified expenditures" include accounting or auditing
expenditures incurred in connection with the report required by
division (F) of this section if paid to an independent certified
public accountant certified, or an accounting firm registered under
Chapter 4701. of the Revised Code. "Qualified expenditures"
do not include eligible expenditures for which a production company
received a tax credit under section 122.85 of the Revised Code.
(3)
"Certificate owner" means a production company to which a
tax credit certificate is issued under division (H) of this section
or a person to which all or part of a tax credit is transferred under
division (I) of this section.
(4)
"Production company," "eligible expenditures,"
"motion picture," and "broadway theatrical production"
have the same meanings as in section 122.85 of the Revised Code.
(B)
For the purpose of encouraging and developing strong film and theater
industries in this state, the director of
housing
and
development
may award a refundable credit against the tax imposed by section
5726.02, 5747.02, or 5751.02 of the Revised Code to a production
company that completes a capital improvement project expected to have
a positive economic impact in this state as a whole, or in any
community in this state in which the facilities or equipment involved
in the project are or will be located. A production company may apply
to the director for a credit on a form and in the manner prescribed
by rules adopted under division (J) of this section. An application
may be submitted before, during, or after completion of the capital
improvement project, but not sooner than July 1, 2024, and shall
include all of the following information:
(1)
The name, address, telephone number, and taxpayer identification
number of the production company;
(2)
A detailed description of the capital improvement project including
the location of the facilities or equipment involved in the project
and an explanation of how those facilities or equipment are intended
to be used in the production or postproduction of motion pictures or
broadway theatrical productions in this state;
(3)(a)
If the capital improvement project is complete at the time the
application is submitted, a schedule documenting the progression of
the project from its commencement to its completion;
(b)
If the capital improvement project is not complete at the time the
application is submitted, a schedule for the progression, completion,
and, if applicable, commencement of the project.
(4)
An estimate of the amount of the project's qualified expenditures
that have been or will be incurred by the production company and, if
the project is not complete at the time the application is submitted,
documentation of the company's financial ability to complete the
project, including documentation that shows the company has secured
funding, other than the tax credit authorized by this section, equal
to at least fifty per cent of the total cost of the project;
(5)
The estimated credit amount, which shall equal the lesser of five
million dollars or twenty-five per cent of the production company's
estimated qualified expenditures;
(6)
The estimated economic impact of the capital improvement project in
this state as a whole, and in any community in this state in which
the facilities or equipment involved in the project are or will be
located;
(7)
Any other information considered necessary by the director.
(C)
The director shall review, evaluate, and approve applications in one
round per fiscal year. For each round, the director shall rank
applications on the basis of the capital improvement project's likely
positive economic impact and effect on developing a permanent
workforce in motion picture or theatrical production industries in
the state as a whole, and in any community in this state in which the
facilities or equipment involved in the project are or will be
located. The effect on developing a permanent workforce in the motion
picture or theatrical production industries shall be evaluated first
by the number of new jobs created and second by amount of payroll
added with respect to employees in this state. Subject to division
(D)(2) of this section, the director shall approve applications in
the order of their ranking, from those with the greatest positive
economic impact and workforce development effect to those with the
least positive economic impact and workforce development effect. The
director shall not approve an application or issue a tax credit
certificate for a capital improvement project that is not likely to
have a positive economic impact or workforce development impact in
either the state as a whole, or any community in this state in which
the facilities or equipment involved in the project are or will be
located.
(D)(1)
The director shall not approve more than twenty-five million dollars
in estimated tax credits in total per fiscal year provided that, for
any fiscal year in which the amount of estimated credits approved
under this section is less than the maximum annual amount, the amount
not approved for that fiscal year shall be added to the maximum
annual amount that may be approved for the following fiscal year.
If
the director rescinds approval of a capital improvement project under
division (E)(2) of this section, the estimated credit amount
attributed to that project shall be added back to the maximum total
annual credit amount for that fiscal year. If the actual credit
amount computed under division (H) of this section is less than the
estimated credit amount approved by the director, the difference
shall be added back to the maximum total annual credit amount for
that fiscal year.
In
any fiscal year, the director may reduce the maximum amount
calculated under division (D)(1) of this section and increase the
maximum amount calculated under division (C)(4) of section 122.85 of
the Revised Code by the amount of that reduction.
(2)
The director shall not approve more than five million dollars in
estimated tax credits per fiscal year for capital improvement
projects located in any single county.
(E)(1)
Within ninety days after the director of
housing
and
development
approves a capital improvement project that was not complete at the
time of the production company's application, the production company
shall submit sufficient evidence of reviewable progress to the
director. The director may request additional updates from the
production company regarding the progression of the project as often
as the director considers necessary until the project is complete or
approval of the project is rescinded. The production company shall
respond to each such request within thirty days.
(2)
The director may rescind approval of a capital improvement project if
the production company fails to timely submit evidence of reviewable
progress or respond to the director's request for a project update,
as required by division (E)(1) of this section, or if the director
determines that the progression of the project is significantly
behind the schedule submitted in the tax credit application. The
director shall rescind approval of a project that does not begin
within ninety days after the date the application is approved unless
the production company shows good cause for the delay, meaning that
the project was delayed due to unforeseeable circumstances beyond the
production company's control or due to action or inaction by a
government agency.
(3)
The director shall notify the production company upon rescinding
approval of a capital improvement project. Nothing in this section
prohibits the production company from reapplying for approval of the
same capital improvement project.
(F)(1)
A production company whose capital improvement project is approved by
the director of
housing
and
development
shall engage, at the company's expense, an independent certified
public accountant to examine the company's qualified expenditures.
Within ninety days after the director approves the project or within
ninety days after a project approved by the director is complete,
whichever is later, the certified public accountant shall issue a
report to the company and to the director that includes all of the
following:
(a)
The amount of the company's actual qualified expenditures;
(b)
Completed copies of all accounting and auditing forms required by the
director in connection with the capital improvement project;
(c)
An itemized review of all contract and expense items of ten thousand
dollars or more that are reported as qualified expenditures;
(d)
An itemized review of at least one-half of the contract and expense
items of less than ten thousand dollars that are reported as
qualified expenditures, both in terms of the total number of such
contracts and items and the total amount of qualified expenditures
reported for such contracts and items;
(e)
Certification that all goods and services reported as qualified
expenditures were purchased and consumed in this state.
(2)
Upon receiving and examining the report, the director may disallow
any expenditure the director determines is not a qualified
expenditure. If the director disallows an expenditure, the director
shall issue a written notice to the production company stating that
the expenditure is disallowed and the reason for the disallowance.
Upon examination of the report and disallowance of any expenditures,
the director shall determine the production company's actual
qualified expenditures for the purpose of computing the amount of the
credit.
(3)
Qualified expenditures reported by the production company are subject
to inspection and examination by the tax commissioner or employees of
the commissioner under section 5703.19 of the Revised Code and any
other applicable law. Once the qualified expenditures are finally
determined under division (F)(2) of this section, the credit amount
is not subject to adjustment unless the director determines an error
was committed in the computation of the credit amount.
(G)
After reviewing the report and making the determination prescribed by
division (F) of this section, the director of
housing
and
development
shall issue a tax credit certificate to the production company. The
director, in consultation with the tax commissioner, shall prescribe
the form and manner of issuing certificates. The director shall
assign a unique identifying number to each tax credit certificate and
shall record the certificate in a register devised and maintained by
the director for that purpose. The certificate shall state the amount
of the credit and the amount of the qualified expenditures upon which
the credit is based. Upon issuance of a certificate, the director
shall certify to the tax commissioner the name of the production
company to which the certificate was issued, the amount of qualified
expenditures shown on the certificate, the amount of the credit, and
any other information required by the rules adopted to administer
this section.
(H)
The credit amount stated on the tax credit certificate shall equal
the lesser of the following:
(1)
Twenty-five per cent of the production company's actual qualified
expenditures, as determined by the director of
housing
and
development
under division (F) of this section;
(2)
The estimated credit amount specified in the production company's tax
credit application under division (B)(5) of this section;
(3)
Five million dollars.
(I)(1)
A production company to which a tax credit certificate is issued
under division (H) of this section may transfer the authority to
claim all or a portion of the amount of the tax credit the production
company is authorized to claim pursuant to that certificate under
section 5726.59, 5747.67, or 5751.55 of the Revised Code to one or
more other persons. Within thirty days after a transfer under this
division, the production company shall submit the following
information to the director of
housing
and
development,
on a form prescribed by the director:
(a)
Information necessary for the director to identify the certificate
that is the basis for the transfer;
(b)
The portion or amount of the tax credit transferred to each
transferee;
(c)
The portion or amount of the tax credit that the production company
retains the authority to claim;
(d)
The tax identification number of each transferee;
(e)
The date of the transfer;
(f)
Any other information required by the director;
(g)
Any information required by the tax commissioner.
The
director shall deliver a copy of any submission received under
division (I)(1) of this section to the tax commissioner.
(2)
A transferee may not claim a credit under section 5726.59, 5747.67,
or 5751.55 of the Revised Code unless and until the transferring
production company complies with division (I)(1) of this section. A
transferee may claim the transferred amount of any credit or portion
of a credit for the same taxable year or tax period for which the
transferring production company was authorized to claim the credit or
portion of a credit pursuant to the certificate. A production company
shall make no transfer under division (I)(1) of this section after
the last day of the tax period or taxable year for which the
production company is required to claim the credit pursuant to the
certificate.
A
production company may make not more than one transfer under division
(I)(1) of this section for each tax credit certificate, but pursuant
to that transaction, may allocate the authority to claim a portion of
the credit to more than one transferee. A production company may not
authorize more than one transferee to claim the same portion of a
credit. No transferee may transfer the right to claim the credit to
another person.
(J)
The director of
housing
and
development,
in consultation with the tax commissioner, shall adopt rules in
accordance with Chapter 119. of the Revised Code for the
administration of this section, including rules setting forth and
governing the criteria for reporting sufficient evidence of
reviewable progress; expenditures that are qualified expenditures; a
schedule and deadlines for applications to be submitted and reviewed;
a competitive process for approving credits based on likely economic
impact and development of a permanent workforce in motion picture or
theatrical production industries; and consideration of geographic
distribution of credits.
To
cover the administrative costs of the program, the director shall
require each applicant to pay an application fee equal to the lesser
of ten thousand dollars or one per cent of the estimated value of the
tax credit as stated in the application. The fees collected shall be
credited to the tax incentives operating fund created in section
122.174 of the Revised Code.
Sec.
122.86.
(A)
As used in this section and section 5747.81 of the Revised Code:
(1)
"Small business enterprise" means a corporation,
pass-through entity, or other person satisfying all of the following:
(a)
At the time of a qualifying investment, the enterprise meets all of
the following requirements:
(i)
Has no outstanding tax or other liabilities owed to the state;
(ii)
Is in good standing with the secretary of state, if the enterprise is
required to be registered with the secretary;
(iii)
Is current with any court-ordered payments;
(iv)
Is not engaged in any illegal activity.
(b)
At the time of a qualifying investment, the enterprise's assets
according to generally accepted accounting principles do not exceed
fifty million dollars, or its annual sales do not exceed ten million
dollars. When making this determination, the assets and annual sales
of all of the enterprise's related or affiliated entities shall be
included in the calculation.
(c)
At the time of a qualifying investment and for the two-year period
immediately preceding the qualifying investment, the enterprise
employs at least fifty full-time equivalent employees in this state
for whom the enterprise is required to withhold income tax under
section 5747.06 of the Revised Code, or more than one-half the
enterprise's total number of full-time equivalent employees employed
anywhere in the United States are employed in this state and are
subject to that withholding requirement.
(d)
The enterprise, within six months after an eligible investor's
qualifying investment is made, incurs cost for one or more of the
following:
(i)
Tangible personal property, other than motor vehicles operated on
public roads and highways, used in business and physically located in
this state from the time of its acquisition by the enterprise until
the end of the investor's holding period, including the installation
of such tangible personal property;
(ii)
Motor vehicles operated on public roads and highways if, from the
time of acquisition by the enterprise until the end of the investor's
holding period, the motor vehicles are purchased in this state,
registered in this state under Chapter 4503. of the Revised Code, are
used primarily for business purposes, and are necessary for the
operation of the enterprise's business;
(iii)
Real property located in this state that is used in the business from
the time of its acquisition by the enterprise until the end of the
holding period;
(iv)
Leasehold improvements and construction costs for property located in
this state that is used in the business from the time its improvement
or construction was completed until the end of the holding period;
(v)
Compensation for new employees of the enterprise hired after the date
the qualifying investment is made for whom the enterprise is required
to withhold income tax under section 5747.06 of the Revised Code.
(2)
"Qualifying investment" means an investment of money made
on or after July 1, 2019, to acquire capital stock or other equity
interest in a small business enterprise. "Qualifying investment"
does not include either of the following:
(a)
Any investment of money an eligible investor derives, directly or
indirectly, from a grant or loan from the federal government or the
state or a political subdivision, including the third frontier
program under Chapter 184. of the Revised Code;
(b)
Any investment of money which is the basis of a tax credit granted
under any other section of the Revised Code.
(3)
"Eligible investor" means an individual, estate, or trust
subject to the tax imposed by section 5747.02 of the Revised Code, or
a pass-through entity in which such an individual, estate, or trust
holds a direct or indirect ownership or other equity interest. To
qualify as an eligible investor, the individual, estate, trust, or
pass-through entity shall not owe any outstanding tax or other
liability to the state at the time of a qualifying investment.
(4)
"Holding period" means the two-year period beginning on the
day a qualifying investment is made.
(5)
"Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.
(B)
An eligible investor that makes a qualifying investment in a small
business enterprise on or after July 1, 2019, may apply to the
director of
housing
and
development
services
to
obtain an allocation for a small business investment certificate from
the director. Alternatively, a small business enterprise may apply on
behalf of eligible investors to obtain the allocation for those
investors. The application must be submitted to the director within
sixty days after the date of the qualifying investment, but within
the same biennium as the qualifying investment. The director, in
consultation with the tax commissioner, shall prescribe the form or
manner in which an applicant shall apply for the certificate, devise
the form of the certificate, and prescribe any records or other
information an applicant shall furnish with the application to
evidence the qualifying investment. The applicant shall pay an
application fee equal to the greater of one-tenth of one per cent of
the amount of the intended investment or one hundred dollars.
The
director of
housing
and
development
services
may
reserve small business investment allocations to qualifying
applicants in the order in which the director receives applications.
An application is completed when the director has validated that an
eligible investor has made a qualified investment and receives all
required documentation needed to demonstrate the small business
enterprise satisfies the requirements of division (A)(1) of this
section. To qualify for an allocation, an eligible investor must
satisfy both of the following, subject to the limitation on the
amount of qualifying investments for which allocations may be issued
under division (C) of this section:
(1)
The eligible investor makes a qualifying investment on or after July
1, 2019.
(2)
The eligible investor pledges not to sell or otherwise dispose of the
qualifying investment before the conclusion of the applicable holding
period.
(C)(1)
The amount of any eligible investor's qualifying investments for
which small business investment allocations may be issued for a
fiscal biennium shall not exceed ten million dollars.
(2)
The director of
housing
and
development
services
shall
not issue a small business investment allocation to an eligible
investor representing an amount of qualifying investment in excess of
the amount of the investment indicated on the investor's application.
(3)
For any fiscal biennium beginning before July 1, 2019, the director
of
housing
and
development
services
shall
not issue small business investment allocations in a total amount
that would cause the tax credits claimed in that biennium to exceed
one hundred million dollars. For any fiscal biennium beginning on or
after July 1, 2019, the director shall not issue small business
investment allocations in a total amount that would cause the tax
credits claimed in that biennium to exceed fifty million dollars.
(4)
The director of
housing
and
development
services
may
issue a small business investment allocation only if both of the
following apply at the time of issuance:
(a)
The small business enterprise meets all the requirements listed in
divisions (A)(1)(a)(i) to (iv) of this section;
(b)
The eligible investor does not owe any outstanding tax or other
liability to the state.
(5)
The director shall not issue a small business investment allocation
on the basis of any investment for which an Ohio opportunity zone
investment certificate has been issued under section 122.84 of the
Revised Code.
(D)
Before the end of the applicable holding period of a qualifying
investment, each enterprise in which a qualifying investment was made
for which a small business investment allocation has been issued,
upon the request of the director of
housing
and
development
services
,
shall provide to the director records or other evidence satisfactory
to the director that the enterprise is a small business enterprise
for the purposes of this section. Each enterprise shall also provide
annually to the director records or evidence regarding the number of
jobs created or retained in the state. The director shall compile and
maintain a register of small business enterprises qualifying under
this section and shall certify the register to the tax commissioner.
The director shall also compile and maintain a record of the number
of jobs created or retained as a result of qualifying investments
made pursuant to this section.
(E)
After the conclusion of the applicable holding period for a
qualifying investment, a person to whom a small business investment
allocation has been issued under this section shall receive a small
business investment certification, which entitles the person to claim
a credit as provided under section 5747.81 of the Revised Code.
However, no certificate may be issued if the director finds that any
requirement under this section is not met.
(F)
The director of
housing
and
development
services
,
in consultation with the tax commissioner, may adopt rules for the
administration of this section, including rules governing the
following:
(1)
Documents, records, or other information eligible investors shall
provide to the director;
(2)
Any information a small business enterprise shall provide for the
purposes of this section and section 5747.81 of the Revised Code;
(3)
Determination of the number of full-time equivalent employees of a
small business enterprise;
(4)
Verification of a small business enterprise's investment;
(5)
Circumstances under which small business enterprises or eligible
investors may be subverting the purposes of this section and section
5747.81 of the Revised Code.
(G)
Application fees paid under division (B) of this section shall be
credited to the tax incentives operating fund created in section
122.174 of the Revised Code.
Sec.
122.88.
(A)
There is hereby created in the state treasury the minority business
bonding fund, consisting of moneys deposited or credited to it
pursuant to section 169.05 of the Revised Code; all grants, gifts,
and contributions received pursuant to division (B)(9) of section
122.74 of the Revised Code; all moneys recovered following defaults;
and any other moneys obtained by the director of
housing
and
development
for the purposes of sections 122.87 to 122.90 of the Revised Code.
The fund shall be administered by the director. Moneys in the fund
shall be held in trust for the purposes of sections 122.87 to 122.90
of the Revised Code.
(B)
Any claims against the state arising from defaults shall be payable
from the minority business bonding program administrative and loss
reserve fund as provided in division (C) of this section or from the
minority business bonding fund. Nothing in sections 122.87 to 122.90
of the Revised Code grants or pledges to any obligee or other person
any state moneys other than the moneys in the minority business
bonding program administrative and loss reserve fund or the minority
business bonding fund, or moneys available to the minority business
bonding fund upon request of the director in accordance with division
(B) of section 169.05 of the Revised Code.
(C)
There is hereby created in the state treasury the minority business
bonding program administrative and loss reserve fund, consisting of
all premiums charged and collected in accordance with section 122.89
of the Revised Code and any interest income earned from the moneys in
the minority business bonding fund. All expenses of the director and
the minority development financing advisory board in carrying out the
purposes of sections 122.87 to 122.90 of the Revised Code shall be
paid from the minority business bonding program administrative and
loss reserve fund.
Any
moneys to the credit of the minority business bonding program
administrative and loss reserve fund in excess of the amount
necessary to fund the appropriation authority for the minority
business bonding program administrative and loss reserve fund shall
be held as a loss reserve to pay claims arising from defaults on
surety bonds underwritten in accordance with section 122.89 of the
Revised Code or guaranteed in accordance with section 122.90 of the
Revised Code. If the balance of funds in the minority business
bonding program administrative and loss reserve fund is insufficient
to pay a claim against the state arising from default, then such
claim shall be payable from the minority business bonding fund.
Sec.
122.89.
(A)
The director of
housing
and
development
may execute bonds as surety for minority businesses as principals, on
contracts with the state, any political subdivision or
instrumentality thereof, or any person as the obligee. The director
as surety may exercise all the rights and powers of a company
authorized by the department of insurance to execute bonds as surety
but shall not be subject to any requirements of a surety company
under Title XXXIX of the Revised Code nor to any rules of the
department of insurance.
(B)
The director, with the advice of the minority development financing
advisory board, shall adopt rules under Chapter 119. of the Revised
Code establishing procedures for application for surety bonds by
minority businesses and for review and approval of applications. The
board shall review each application in accordance with the rules and,
based on the bond worthiness of each applicant, shall refer all
qualified applicants to the director. Based on the recommendation of
the board, the director shall determine whether or not the applicant
shall receive bonding.
(C)
The rules of the board shall require the minority business to pay a
premium in advance for the bond to be established by the director,
with the advice of the board after the director receives advice from
the superintendent of insurance regarding the standard market rates
for premiums for similar bonds. All premiums paid by minority
businesses shall be paid into the minority business bonding program
administrative and loss reserve fund.
(D)
The rules of the board shall provide for a retainage of money paid to
the minority business or EDGE business enterprise of fifteen per cent
for a contract valued at more than fifty thousand dollars and for a
retainage of twelve per cent for a contract valued at fifty thousand
dollars or less.
(E)
The penal sum amounts of all outstanding bonds issued by the director
shall not exceed the amount of moneys in the minority business
bonding fund and available to the fund under division (B) of section
169.05 of the Revised Code.
(F)
The superintendent of insurance shall provide such technical and
professional assistance as is considered necessary by the director,
including providing advice regarding the standard market rates for
bond premiums as described under division (C) of this section.
(G)
Notwithstanding any provision of the Revised Code to the contrary, a
minority business or EDGE business enterprise may bid or enter into a
contract with the state or with any instrumentality of the state
without being required to provide a bond as follows:
(1)
For the first contract that a minority business or EDGE business
enterprise enters into with the state or with any particular
instrumentality of the state, the minority business or EDGE business
enterprise may bid or enter into a contract valued at twenty-five
thousand dollars or less without being required to provide a bond,
but only if the minority business or EDGE business enterprise is
participating in a qualified contractor assistance program or has
successfully completed a qualified contractor assistance program
after October 16, 2009;
(2)
After the state or any particular instrumentality of the state has
accepted the first contract as completed and all subcontractors and
suppliers on the contract have been paid, the minority business or
EDGE business enterprise may bid or enter into a second contract with
the state or with that particular instrumentality of the state valued
at fifty thousand dollars or less without being required to provide a
bond, but only if the minority business or EDGE business enterprise
is participating in a qualified contractor assistance program or has
successfully completed a qualified contractor assistance program
after October 16, 2009;
(3)
After the state or any particular instrumentality of the state has
accepted the second contract as completed and all subcontractors and
suppliers on the contract have been paid, the minority business or
EDGE business enterprise may bid or enter into a third contract with
the state or with that particular instrumentality of the state valued
at one hundred thousand dollars or less without being required to
provide a bond, but only if the minority business or EDGE business
enterprise has successfully completed a qualified contractor
assistance program after October 16, 2009;
(4)
After the state or any particular instrumentality of the state has
accepted the third contract as completed and all subcontractors and
suppliers on the contract have been paid, the minority business or
EDGE business enterprise may bid or enter into a fourth contract with
the state or with that particular instrumentality of the state valued
at three hundred thousand dollars or less without being required to
provide a bond, but only if the minority business or EDGE business
enterprise has successfully completed a qualified contractor
assistance program after October 16, 2009;
(5)
After the state or any instrumentality of the state has accepted the
fourth contract as completed and all subcontractors and suppliers on
the contract have been paid, upon a showing that with respect to a
contract valued at four hundred thousand dollars or less with the
state or with any particular instrumentality of the state, that the
minority business or EDGE business enterprise either has been denied
a bond by two surety companies or that the minority business or EDGE
business enterprise has applied to two surety companies for a bond
and, at the expiration of sixty days after making the application,
has neither received nor been denied a bond, the minority business or
EDGE business enterprise may repeat its participation in the unbonded
state contractor program. Under no circumstances shall a minority
business or EDGE business enterprise be permitted to participate in
the unbonded state contractor program more than twice.
(H)
Notwithstanding any provision of the Revised Code to the contrary, a
minority business or EDGE business enterprise may bid or enter into a
contract with any political subdivision of the state or with any
instrumentality of a political subdivision without being required to
provide a bond as follows:
(1)
For the first contract that the minority business or EDGE business
enterprise enters into with any particular political subdivision of
the state or with any particular instrumentality of a political
subdivision, the minority business or EDGE business enterprise may
bid or enter into a contract valued at twenty-five thousand dollars
or less without being required to provide a bond, but only if the
minority business or EDGE business enterprise is participating in a
qualified contractor assistance program or has successfully completed
a qualified contractor assistance program after October 16, 2009;
(2)
After any political subdivision of the state or any instrumentality
of a political subdivision has accepted the first contract as
completed and all subcontractors and suppliers on the contract have
been paid, the minority business or EDGE business enterprise may bid
or enter into a second contract with that particular political
subdivision of the state or with that particular instrumentality of a
political subdivision valued at fifty thousand dollars or less
without being required to provide a bond, but only if the minority
business or EDGE business enterprise is participating in a qualified
contractor assistance program or has successfully completed a
qualified contractor assistance program after October 16, 2009;
(3)
After any political subdivision of the state or any instrumentality
of a political subdivision has accepted the second contract as
completed and all subcontractors and suppliers on the contract have
been paid, the minority business or EDGE business enterprise may bid
or enter into a third contract with that particular political
subdivision of the state or with that particular instrumentality of a
political subdivision valued at one hundred thousand dollars or less
without being required to provide a bond, but only if the minority
business or EDGE business enterprise has successfully completed a
qualified contractor assistance program after October 16, 2009;
(4)
After any political subdivision of the state or any instrumentality
of a political subdivision has accepted the third contract as
completed and all subcontractors and suppliers on the contract have
been paid, the minority business or EDGE business enterprise may bid
or enter into a fourth contract with that particular political
subdivision of the state or with that particular instrumentality of a
political subdivision valued at two hundred thousand dollars or less
without being required to provide a bond, but only if the minority
business or EDGE business enterprise has successfully completed a
qualified contractor assistance program after October 16, 2009;
(5)
After any political subdivision of the state or any instrumentality
of a political subdivision has accepted the fourth contract as
completed and all subcontractors and suppliers on the contract have
been paid, upon a showing that with respect to a contract valued at
three hundred thousand dollars or less with any political subdivision
of the state or any instrumentality of a political subdivision, that
the minority business or EDGE business enterprise either has been
denied a bond by two surety companies or that the minority business
or EDGE business enterprise has applied to two surety companies for a
bond and, at the expiration of sixty days after making the
application, has neither received nor been denied a bond, the
minority business or EDGE business enterprise may repeat its
participation in the unbonded political subdivision contractor
program. Under no circumstances shall a minority business or EDGE
business enterprise be permitted to participate in the unbonded
political subdivision contractor program more than twice.
(I)
Notwithstanding any provision of the Revised Code to the contrary, if
a minority business or EDGE business enterprise has entered into two
or more contracts with the state or with any instrumentality of the
state, the minority business or EDGE business enterprise may bid or
enter into a contract with a political subdivision of the state or
with any instrumentality of a political subdivision valued at the
level at which the minority business or EDGE business enterprise
would qualify if entering into an additional contract with the state.
(J)
The director of
housing
and
development
shall coordinate and oversee the unbonded state contractor program
described in division (G) of this section, the unbonded political
subdivision contractor program described in division (H) of this
section, and the approval of a qualified contractor assistance
program. The director shall prepare an annual report and submit it to
the governor and the general assembly on or before the first day of
August that includes the following: information on the director's
activities for the preceding calendar year regarding the unbonded
state contractor program, the unbonded political subdivision
contractor program, and the qualified contractor assistance program;
a summary and description of the operations and activities of these
programs; an assessment of the achievements of these programs; and a
recommendation as to whether these programs need to continue.
(K)
As used in this section:
(1)
"EDGE business enterprise" means an EDGE business
enterprise certified under section 122.922 of the Revised Code.
(2)
"Qualified contractor assistance program" means an
educational program or technical assistance program for business
development that is designed to assist a minority business or EDGE
business enterprise in becoming eligible for bonding and has been
approved by the director of
housing
and
development
for use as required under this section.
(3)
"Successfully completed a qualified contractor assistance
program" means the minority business or EDGE business enterprise
completed such a program on or after October 16, 2009.
(4)
"Unbonded state contractor program" means the program
described in division (G) of this section.
(5)
"Unbonded political subdivision contractor program" means
the program described in division (H) of this section.
Sec.
122.90.
(A)
The director of
housing
and
development
may guarantee bonds executed by sureties for minority businesses and
EDGE business enterprises certified under section 122.922 of the
Revised Code as principals on contracts with the state, any political
subdivision or instrumentality, or any person as the obligee. The
director, as guarantor, may exercise all the rights and powers of a
company authorized by the department of insurance to guarantee bonds
under Chapter 3929. of the Revised Code but otherwise is not subject
to any laws related to a guaranty company under Title XXXIX of the
Revised Code nor to any rules of the department of insurance.
(B)
The director shall adopt rules under Chapter 119. of the Revised Code
to establish procedures for the application for bond guarantees and
the review and approval of applications for bond guarantees submitted
by sureties that execute bonds eligible for guarantees under division
(A) of this section.
(C)
In accordance with rules adopted pursuant to this section, the
director may guarantee up to ninety per cent of the loss incurred and
paid by sureties on bonds guaranteed under division (A) of this
section.
(D)
The penal sum amounts of all outstanding guarantees made by the
director under this section shall not exceed three times the
difference between the amount of moneys in the minority business
bonding fund and available to the fund under division (B) of section
169.05 of the Revised Code and the amount of all outstanding bonds
issued by the director in accordance with division (A) of section
122.89 of the Revised Code.
(E)
The director of
housing
and
development,
with controlling board approval, may approve one application per
fiscal year from each surety bond company for bond guarantees in an
amount requested to support one fiscal year of that company's
activity under this section. A surety bond company that applies for a
bond guarantee under this division, whether or not the guarantee is
approved, is not restricted from also applying for individual bond
guarantees under division (A) of this section.
Sec.
122.91.
(A)
As used in this section:
(1)
"Qualifying individual" means an individual who holds a
valid commercial driver's license or who is eligible to obtain such a
license.
(2)
"Commercial driver's license" and "commercial motor
vehicle" have the same meanings as in section 4506.01 of the
Revised Code.
(3)
"Training expense" means any cost customarily incurred by
an employer to train an employee who is a qualifying individual to
obtain a commercial driver's license or to operate a commercial motor
vehicle. "Training expense" shall not include such an
employee's wages.
(4)
"Tax credit-eligible training expense" means any training
expense certified under division (B) of this section.
(5)
"Director" means the director of
housing
and
development.
(B)(1)
For calendar years 2023 through 2026, an employer may apply to the
director, on or before the first day of December of each year and on
a form prescribed by the director, to certify training expenses that
an employer estimates the employer will incur during the following
calendar year as tax credit-eligible training expenses. Within thirty
days after receiving such an application, the director shall certify
to each applicant the amount of the applicant's submitted expenses
the director finds to be tax credit-eligible training expenses. The
director shall not certify more than fifty thousand dollars of
training expenses per year as tax credit-eligible training expenses
for any employer.
(2)
The director shall not certify more than three million dollars in tax
credit-eligible training expenses for each calendar year, increased
by the sum of tax credit-eligible expenses the director was
authorized to certify within the limit described in division (B)(2)
of this section for preceding years that were not the basis of a tax
credit certificate issued under division (C)(2) of this section in
the current year or any preceding year.
(C)(1)
An employer that incurs tax credit-eligible training expenses in a
calendar year that were certified for that year under division (B) of
this section may apply to the director for a nonrefundable credit
against the tax imposed by section 5747.02 of the Revised Code. The
credit shall equal one-half of the tax credit-eligible training
expenses actually incurred by the employer in, and certified for, the
preceding calendar year. The application may be submitted after the
first day and before the twenty-first day of January of the year
following the year for which the director certified the expenses. The
application shall be submitted on a form prescribed by the director
and shall, at a minimum, include an itemized list of tax
credit-eligible training expenses incurred by the employer for each
employee and the identities of those employees.
(2)
If the director approves an application described in division (C)(1)
of this section, the director, within sixty days after receipt of the
application, shall issue a tax credit certificate to the applicant.
The director in consultation with the tax commissioner shall
prescribe the form and manner of issuing certificates. The director
shall assign a unique identifying number to each tax credit
certificate and shall record the certificate in a register devised
and maintained by the director for that purpose. The certificate
shall state the amount of the tax credit-eligible training expenses
on which the credit is based, the amount of the credit, and the date
the certificate is issued. Upon issuance of a certificate, the
director shall certify to the tax commissioner the name of the
applicant, the amount of tax credit-eligible training expenses stated
on the certificate, and any other information required by the rules
adopted under this section.
(D)(1)
An employer that has been issued a tax credit certificate under
division (C)(2) of this section during the preceding calendar year
shall file a form with the director identifying all employees, the
training of which is the basis of that tax credit, whose employment
with the employer was terminated during the preceding calendar year,
the amount of the tax credit that is attributable to those employees,
and any other information requested by the director. The form shall
be prescribed by the director, and shall be filed on or before the
twenty-first day of January of the year following the issuance year
stated on the certificate.
(2)
The director shall annually submit to the general assembly a report
in accordance with division (B) of section 101.68 of the Revised Code
that includes the total number of employees described in division
(D)(1) of this section and reported to the director for the preceding
calendar year, the total amount of tax credits attributable to those
employees, and any other information the director finds pertinent.
(E)
The director in consultation with the tax commissioner shall adopt
rules under Chapter 119. of the Revised Code for the administration
of this section. Such rules shall set forth any applicable fees, any
penalties for noncompliance with the reporting requirements
prescribed in division (D) of this section, and the types of expenses
that qualify as training expenses for purposes of this section.
Sec.
122.92.
There
is hereby created in the department of
housing
and
development
a minority business development division. The division shall do all
of the following:
(A)
Provide technical, managerial, and counseling services and assistance
to minority business enterprises;
(B)
Provide procurement and bid packaging assistance to minority business
enterprises;
(C)
Provide bonding technical assistance to minority business
enterprises;
(D)
Participate with other state departments and agencies as appropriate
in developing specific plans and specific program goals for programs
to assist in the establishment and development of minority business
enterprises and establish regular performance monitoring and
reporting systems to ensure that those goals are being achieved;
(E)
Implement state law and policy supporting minority business
enterprise development, and assist in the coordination of plans,
programs, and operations of state government which affect or may
contribute to the establishment, preservation, and strengthening of
minority business enterprises;
(F)
Assist in the coordination of activities and resources of state
agencies and local governments, business and trade associations,
universities, foundations, professional organizations, and volunteer
and other groups, to promote the growth of minority business
enterprises;
(G)
Establish a center for the development, collection, and dissemination
of information that will be helpful to persons in establishing or
expanding minority business enterprises in this state;
(H)
Design, implement, and assist in experimental and demonstration
projects designed to overcome the special problems of minority
business enterprises;
(I)
Coordinate reviews of all proposed state training and technical
assistance activities in direct support of minority business
enterprise programs to ensure consistency with program goals and to
preclude duplication of efforts by other state agencies;
(J)
Recommend appropriate legislative or executive actions to enhance
minority business enterprise opportunities in the state;
(K)
Assist minority business enterprises in obtaining governmental or
commercial financing for business expansion, establishment of new
businesses, or industrial development projects;
(L)
Assist minority business enterprises in contract procurement from
government and commercial sources;
(M)
Establish procedures to identify groups who have been disadvantaged
because of racial, cultural, or ethnic circumstances without regard
to the individual qualities of the members of the group;
(N)
Establish procedures to identify persons who have been economically
disadvantaged;
(O)
Provide grant assistance to nonprofit entities that promote economic
development, development corporations, community improvement
corporations, and incubator business entities, if the entities or
corporations focus on business, technical, and financial assistance
to minority business enterprises to assist the enterprises with fixed
asset financing;
(P)
Implement the minority business enterprise program described in
section 122.921 of the Revised Code, the encouraging diversity,
growth, and equity program described in section 122.922 of the
Revised Code, the women-owned business enterprise program described
in section 122.924 of the Revised Code, and the veteran-friendly
business enterprise program described in section 122.925 of the
Revised Code.
(Q)
Do all acts and things necessary or proper to carry out the powers
expressly granted and duties imposed by sections 122.92 to 122.94 of
the Revised Code.
Sec.
122.921.
(A)
As used in this section, "minority business enterprise" has
the same meaning as in division (E)(1) of section 122.71 of the
Revised Code.
(B)(1)
The director of
housing
and
development
shall make rules in accordance with Chapter 119. of the Revised Code
establishing procedures by which minority businesses may apply to the
department of
housing
and
development
for certification as minority business enterprises.
(2)
The director shall approve the application of any minority business
enterprise that complies with the rules adopted under this division.
Any person adversely affected by an order of the director denying
certification as a minority business enterprise may appeal as
provided in Chapter 119. of the Revised Code. The director shall
prepare and maintain a list of certified minority business
enterprises.
(C)
Every state agency authorized to enter into contracts for
construction or contracts for purchases of equipment, materials,
supplies, insurance, or services, and every port authority shall file
a report every ninety days with the department of
housing
and
development.
The report shall be filed at a time and in a form prescribed by the
director of
housing
and
development.
The report shall include the name of each minority business
enterprise that the state agency or port authority entered into a
contract with during the preceding ninety-day period and the total
value and type of each such contract. No later than thirty days after
the end of each fiscal year, the director shall notify in writing
each state agency and port authority that has not complied with the
reporting requirements of this division for the prior fiscal year. A
copy of this notification regarding a state agency shall be submitted
to the director of budget and management. No later than thirty days
after the notification, the state agency or port authority shall
submit to the director the information necessary to comply with the
reporting requirements of this division.
If,
after the expiration of this thirty-day period, a state agency has
not complied with the reporting requirements of this division, the
director of
housing
and
development
shall certify to the director of budget and management that the state
agency has not complied with the reporting requirements. A copy of
this certification shall be submitted to the state agency.
Thereafter, no funds of the state agency shall be expended during the
fiscal year for construction or purchases of equipment, materials,
supplies, contracts of insurance, or services until the director of
housing
and
development
certifies to the director of budget and management that the state
agency has complied with the reporting requirements of this division
for the prior fiscal year.
If
any port authority has not complied with the reporting requirement
after the expiration of the thirty-day period, the director of
housing
and
development
shall certify to the speaker of the house of representatives and the
president of the senate that the port authority has not complied with
the reporting requirements of this division. A copy of this
certification shall be submitted to the port authority. Upon receipt
of the certification, the speaker of the house of representatives and
the president of the senate shall take such action or make such
recommendations to the members of the general assembly as they
consider necessary to correct the situation.
(D)(1)
Any person who has been certified as a minority business enterprise
under this section may present the person's certification to a
political subdivision as evidence that that person is eligible to
participate in any public initiatives or strategies that the
political subdivision has established to increase minority
participation, representation, or inclusion in business
opportunities, and in any programs the political subdivision may have
that set aside a certain amount of public contracts to award to any
of the economically disadvantaged groups listed in division (E)(1) of
section 122.71 of the Revised Code.
(2)
When considering this evidence, a political subdivision shall defer
to the department's determination that the person is both of the
following:
(a)
A member of the economically disadvantaged group indicated on the
certification;
(b)
An owner of at least fifty-one per cent of the business, including
corporate stock if a corporation, and has control over the management
and day-to-day operations of the business and an interest in the
capital, assets, and profits and losses of the business proportionate
to the person's percentage of ownership.
Sec.
122.922.
(A)
As used in this section, "EDGE business enterprise" means a
sole proprietorship, association, partnership, corporation, limited
liability corporation, or joint venture certified as a participant in
the encouraging diversity, growth, and equity program by the director
of
housing
and
development
under this section of the Revised Code.
(B)
The director of
housing
and
development
shall establish a business assistance program known as the
encouraging diversity, growth, and equity program and shall adopt
rules in accordance with Chapter 119. of the Revised Code to
administer the program that do all of the following:
(1)
Establish procedures by which a sole proprietorship, association,
partnership, corporation, limited liability corporation, or joint
venture may apply for certification as an EDGE business enterprise;
(2)
Except as provided in division (B)(14) of this section, establish
agency procurement goals for contracting with EDGE business
enterprises in the award of contracts under Chapters 123., 125., and
153. of the Revised Code based on the availability of eligible
program participants by region or geographic area, as determined by
the director, and by standard industrial code or equivalent code
classification.
(a)
Goals established under division (B)(2) of this section shall be
based on a percentage level of participation and a percentage of
contractor availability.
(b)
Goals established under division (B)(2) of this section shall be
applied at the contract level, relative to an overall dollar goal for
each state agency, in accordance with the following certification
categories: construction, architecture, and engineering; professional
services; goods and services; and information technology services.
(3)
Establish a system of certifying EDGE business enterprises based on a
requirement that the business owner or owners show both social and
economic disadvantage based on the following, as determined to be
sufficient by the director:
(a)
Relative wealth of the business seeking certification as well as the
personal wealth of the owner or owners of the business;
(b)
Social disadvantage based on any of the following:
(i)
A rebuttable presumption when the business owner or owners
demonstrate membership in a racial minority group or show personal
disadvantage due to color, ethnic origin, gender, physical
disability, long-term residence in an environment isolated from the
mainstream of American society, location in an area of high
unemployment;
(ii)
Some other demonstration of personal disadvantage not common to other
small businesses;
(iii)
By business location in a qualified census tract.
(c)
Economic disadvantage based on economic and business size thresholds
and eligibility criteria designed to stimulate economic development
through contract awards to businesses located in qualified census
tracts.
(4)
Establish standards to determine when an EDGE business enterprise no
longer qualifies for EDGE business enterprise certification;
(5)
Develop a process for evaluating and adjusting goals established by
this section to determine what adjustments are necessary to achieve
participation goals established by the director;
(6)
Establish a point system or comparable system to evaluate bid
proposals to encourage EDGE business enterprises to participate in
the procurement of professional design and information technology
services;
(7)
Establish a system to track data and analyze each certification
category established under division (B)(2)(b) of this section;
(8)
Establish a process to mediate complaints and to review EDGE business
enterprise certification appeals;
(9)
Implement an outreach program to educate potential participants about
the encouraging diversity, growth, and equity program;
(10)
Establish a system to assist state agencies in identifying and
utilizing EDGE business enterprises in their contracting processes;
(11)
Implement a system of self-reporting by EDGE business enterprises as
well as an on-site inspection process to validate the qualifications
of an EDGE business enterprise;
(12)
Establish a waiver mechanism to waive program goals or participation
requirements for those companies that, despite their best-documented
efforts, are unable to contract with certified EDGE business
enterprises;
(13)
Establish a process for monitoring overall program compliance in
which equal employment opportunity officers primarily are responsible
for monitoring their respective agencies;
(14)
Establish guidelines for state universities as defined in section
3345.011 of the Revised Code and the Ohio facilities construction
commission created in section 123.20 of the Revised Code for awarding
contracts pursuant to Chapters 153., 3318., and 3345. of the Revised
Code to allow the universities and commission to establish agency
procurement goals for contracting with EDGE business enterprises.
(C)
Business and personal financial information and trade secrets
submitted by encouraging diversity, growth, and equity program
applicants to the director pursuant to this section are not public
records for purposes of section 149.43 of the Revised Code, unless
the director presents the financial information or trade secrets at a
public hearing or public proceeding regarding the applicant's
eligibility to participate in the program.
Sec.
122.923.
(A)
As used in this section:
(1)
"Minority business enterprise" has the same meaning as in
section 122.921 of the Revised Code.
(2)
"EDGE business enterprise" has the same meaning as in
section 122.922 of the Revised Code.
(3)
"Women-owned business enterprise" has the same meaning as
in section 122.924 of the Revised Code.
"Veteran-friendly
business enterprise" has the same meaning as in section 122.925
of the Revised Code.
(B)
Not later than the first day of October in each year, the director of
housing
and
development
shall submit a written report to the governor and to each member of
the general assembly describing the progress made by state agencies
in advancing the minority business enterprise program, the
encouraging diversity, growth, and equity program, the women-owned
business enterprise program, and the veteran-friendly business
enterprise program. The report shall highlight the initiatives
implemented to encourage participation of minority-owned, socially
and economically disadvantaged, women-owned businesses, and
veteran-friendly businesses in programs funded by state money or
federal money received by the state. The report shall also include
the total number of procurement contracts each agency has entered
into with certified minority business enterprises, EDGE business
enterprises, women-owned business enterprises, and veteran-friendly
business enterprises.
Sec.
122.924.
(A)
As used in this section:
"Women-owned
business enterprise" means any individual, partnership,
corporation, or joint venture of any kind that is owned and
controlled by women who are United States citizens and residents of
this state or of a reciprocal state.
"Owned
and controlled" means that at least fifty-one per cent of the
business, including corporate stock if it is a corporation, is owned
by women and that such owners have control over the day-to-day
operations of the business and an interest in the capital, assets,
and profits and losses of the business proportionate to their
percentage of ownership. In order to qualify as a women-owned
business, a business shall have been owned by such owners at least
one year.
(B)
The director of
housing
and
development
shall establish a business assistance program known as the
women-owned business enterprise program and shall adopt rules in
accordance with Chapter 119. of the Revised Code to administer the
program that do all of the following:
(1)
Establish procedures by which a business enterprise may apply for
certification as a women-owned business enterprise;
(2)
Establish standards to determine when a women-owned business
enterprise no longer qualifies for women-owned business enterprise
certification;
(3)
Establish a system to make publicly available a list of women-owned
business enterprises certified under this section;
(4)
Establish a process to mediate complaints and to review women-owned
business enterprise certification appeals;
(5)
Implement an outreach program to educate potential participants about
the women-owned business enterprise program;
(6)
Establish a system to assist state agencies in identifying and
utilizing women-owned business enterprises in their contracting
processes;
(7)
Implement a system of self-reporting by women-owned business
enterprises as well as an on-site inspection process to validate the
qualifications of women-owned business enterprises.
(C)
Business and personal financial information and trade secrets
submitted by women-owned business enterprise applicants to the
director pursuant to this section are not public records for purposes
of section 149.43 of the Revised Code, unless the director presents
the financial information or trade secrets at a public hearing or
public proceeding regarding the applicant's eligibility to
participate in the program.
(D)
The director of
housing
and
development,
upon approval of the attorney general, may enter into a reciprocal
agreement with the appropriate officials of one or more states, when
the other state has a business assistance program or programs
substantially similar to the women-owned business enterprise program
of this state. The agreement shall provide that a business certified
by the other state as a women-owned business enterprise, which is
owned and controlled by a resident or residents of that other state,
shall be considered a women-owned business enterprise in this state
under this section. The agreement shall provide that a women-owned
business enterprise certified under this section, which is owned and
controlled by a resident or residents of this state, shall be
considered certified in the other state and eligible for programs of
that state that provide an advantage or benefit to such businesses.
(E)(1)
Any person who has been certified as a women-owned business
enterprise under this section may present the person's certification
to a political subdivision as evidence that that person is eligible
to participate in any public initiatives or strategies that the
political subdivision has established to increase the participation,
representation, or inclusion of women in business opportunities, and
in any programs the political subdivision may have that set aside a
certain amount of public contracts to award to women-owned business
enterprises.
(2)
When considering this evidence, a political subdivision shall defer
to the department's determination that the person is a woman, that
the person owns and controls the person's business, and that the
person has owned the person's business for at least one year.
Sec.
122.925.
(A)
As used in this section:
"Armed
forces" means the armed forces of the United States, including
the army, navy, air force, marine corps, space force, coast guard, or
any reserve component of those forces; the national guard of any
state; the commissioned corps of the United States public health
service; the merchant marine service during wartime; such other
service as may be designated by congress; and the Ohio organized
militia when engaged in full-time national guard duty for a period of
more than thirty days.
"State
agency" has the meaning defined in section 1.60 of the Revised
Code.
"Veteran"
means any person who has completed service in the armed forces,
including the national guard of any state, or a reserve component of
the armed forces, who has been honorably discharged or discharged
under honorable conditions from the armed forces or who has been
transferred to the reserve with evidence of satisfactory service.
"Veteran-friendly
business enterprise" means a sole proprietorship, association,
partnership, corporation, limited liability company, or joint venture
that meets veteran employment standards established by the director
of
housing
and
development
and the director of transportation under this section.
(B)
The director of
housing
and
development
and the director of transportation shall establish and maintain the
veteran-friendly business procurement program. The director of
housing
and
development
shall adopt rules to administer the program for all state agencies
except the department of transportation, and the director of
transportation shall adopt rules to administer the program for the
department of transportation. The rules shall be adopted under
Chapter 119. of the Revised Code. The rules, as adopted separately by
but with the greatest degree of consistency possible between the two
directors, shall do all of the following:
(1)
Establish criteria, based on the percentage of an applicant's
employees who are veterans, that qualifies an applicant for
certification as a veteran-friendly business enterprise;
(2)
Establish procedures by which a sole proprietorship, association,
partnership, corporation, limited liability company, or joint venture
may apply for certification as a veteran-friendly business
enterprise;
(3)
Establish procedures for certifying a sole proprietorship,
association, partnership, corporation, limited liability company, or
joint venture as a veteran-friendly business enterprise;
(4)
Establish standards for determining when a veteran-friendly business
enterprise no longer qualifies for certification as a
veteran-friendly business enterprise;
(5)
Establish procedures, to be used by state agencies or the department
of transportation, for the evaluation and ranking of proposals, which
provide preference or bonus points to each certified veteran-friendly
business enterprise that submits a bid or other proposal for a
contract with the state or an agency of the state other than the
department of transportation, or with the department of
transportation, for the rendering of services, or the supplying of
materials, or for the construction, demolition, alteration, repair,
or reconstruction of any public building, structure, highway, or
other improvement;
(6)
Implement an outreach program to educate potential participants about
the veteran-friendly business procurement program; and
(7)
Establish a process for monitoring overall performance of the
veteran-friendly business procurement program.
(C)(1)
Any person who has been certified as a veteran-friendly business
enterprise under this section may present the person's certification
to a political subdivision as evidence that the person is eligible to
participate in any public initiatives or strategies that the
political subdivision has established to reward veteran-friendly
businesses or to increase the participation, representation, or
inclusion of veteran-friendly businesses in business opportunities,
and in any programs the political subdivision may have that set aside
a certain amount of public contracts to award to veteran-friendly
business enterprises.
(2)
When considering this evidence, a political subdivision shall defer
to the department's determination that the person meets the criteria
established under division (B)(1) of this section.
Sec.
122.94.
The
director of
housing
and
development
services
shall:
(A)
Promulgate rules in accordance with Chapter 119. of the Revised Code
for the conduct of the minority business development division's
business and for carrying out the purposes of sections 122.92 to
122.94 of the Revised Code;
(B)
Prepare an annual report to the governor and the general assembly on
or before the first day of August of its activities for the preceding
calendar year.
Sec.
122.941.
(A)
On or before the first day of August in each year, the director of
housing
and
development
services
shall
make an annual report of the activities and operations under the
assistance programs of the
department
of housing and
development
services
agency
for
the preceding fiscal year to the governor and general assembly. The
annual report shall include a detailing of those grants, guarantees,
loans, and other forms of state assistance to women-owned businesses.
(B)
As used in this section:
(1)
"Women-owned business" means any individual, partnership,
corporation, or joint venture of any kind that is owned and
controlled by women who are United States citizens and residents of
this state.
(2)
"Owned and controlled" means that at least fifty-one per
cent of the business, including corporate stock if it is a
corporation, is owned by women and that such owners have control over
the day-to-day operations of the business and an interest in the
capital, assets, and profits and losses of the business proportionate
to their percentage of ownership. In order to qualify as a
women-owned business, a business shall have been owned by such owners
at least one year.
Sec.
122.942.
(A)
The director of
housing
and
development
services
shall,
with respect to each project for which a loan, grant, tax credit, or
other state-funded financial assistance is awarded by the
department
of housing and
development
services agency
,
make all of the following information available to the public within
thirty days after the
agency
department
enters
into a contract with the recipient:
(1)
A summary of the project that includes all of the following:
(a)
A breakdown of the sources of the funds for each aspect of the
project, such as state or federal programs, the operating company or
entity itself, or any private financing, and a complete description
of how each type of funds is to be used;
(b)
The total amount of assistance awarded;
(c)
A brief description of the project;
(d)
The following information regarding the project:
(i)
The operating company or entity that is awarded the assistance;
(ii)
The products or services provided by the operating company or entity;
(iii)
The number of new jobs, at-risk jobs, and retained jobs anticipated;
the hourly wages and hourly benefits of those jobs; and the dollar
amount of assistance per job affected.
(e)
The strengths and weaknesses of the project;
(f)
The location of the project, the location of the operating company or
entity, and whether relocation is involved;
(g)
The Ohio house district and Ohio senate district in which the project
is located;
(h)
The payment terms and conditions of the assistance awarded;
(i)
The collateral or security required;
(j)
The recommendation of the staff assigned to the project.
(2)
A comprehensive report that provides a description of the operating
company or entity; all relevant information regarding the project; an
analysis of the operating company or entity and the goods or services
it provides; the explicit terms of any collateral or security
required; and the reasoning behind the staffs' recommendation.
(3)
Any other relevant information the controlling board may request, or
the director may consider necessary to more fully describe the
details of the assistance or the operating company or entity, that is
provided before the controlling board approves the assistance.
(B)(1)
As used in this division, "tax incentive" means any
exemption, either in whole or in part, of the income, goods,
services, or property of a taxpayer from the effect of taxes levied
by or under the Revised Code. "Tax incentive" includes, but
is not limited to, tax exemptions, deferrals, exclusions, allowances,
credits, deductions, reimbursements, and preferential tax rates.
(2)
The director of
housing
and
development
services
shall
estimate the total revenue that will be forgone by the state as a
result of each tax incentive approved by the tax credit authority
created under section 122.17 of the Revised Code. The estimate shall
be based on the monetary value of the tax incentive and not on
potential economic growth. The director shall make each estimate,
along with the name and address of the taxpayer that will receive the
tax incentive, available to the public within thirty days after the
date the tax incentive is approved by the tax credit authority.
Nothing
in this division precludes the director of
housing
and
development
services
from
making other information regarding tax incentives available to the
public unless disclosure of such information is prohibited by any
other section of the Revised Code.
(3)
The director may adopt rules in accordance with Chapter 119. of the
Revised Code to effectuate this division.
(C)
Nothing in this section shall be construed as requiring the
disclosure of information that is not a public record under section
149.43 of the Revised Code.
Sec.
122.951.
(A)
If the director of
housing
and
development
services
determines
that a grant may create new jobs or preserve existing jobs and
employment opportunities in an eligible county, the director may
grant up to seven hundred fifty thousand dollars to the eligible
county for the purpose of acquiring commercial or industrial land or
buildings and making improvements to commercial or industrial areas
within the eligible county, including, but not limited to:
(1)
Expanding, remodeling, renovating, and modernizing buildings,
structures, and other improvements;
(2)
Remediating environmentally contaminated property on which hazardous
substances exist under conditions that have caused or would cause the
property to be identified as contaminated by the Ohio or United
States environmental protection agency; and
(3)
Infrastructure improvements, including, but not limited to, site
preparation, including building demolition and removal; streets,
roads, bridges, and traffic control devices; parking lots and
facilities; water and sewer lines and treatment plants; gas,
electric, and telecommunications, including broadband, hook-ups; and
water and railway access improvements.
A
grant awarded under this section shall provide not more than
seventy-five per cent of the estimated total cost of the project for
which an application is submitted under this section. In addition,
not more than ten per cent of the amount of the grant shall be used
to pay the costs of professional services related to the project.
(B)
An eligible county may apply to the director for a grant under this
section in the form and manner prescribed by the director. The
eligible county shall include on the application all information
required by the director. The application shall require the eligible
county to provide a detailed description of how the eligible county
would use a grant to improve commercial or industrial areas within
the eligible county, and to specify how a grant will lead to the
creation of new jobs or the preservation of existing jobs and
employment opportunities in the eligible county. The eligible county
shall specify in the application the amount of the grant for which
the eligible county is applying.
(C)
An eligible county may designate a port authority, community
improvement corporation as defined in section 122.71 of the Revised
Code, or other economic development entity that is located in the
county to apply for a grant under this section. If a port authority,
community improvement corporation, or other economic development
entity is so designated, references to an eligible county in this
section include references to the authority, corporation, or other
entity.
Sec.
122.9511.
(A)
As used in this section:
(1)
"Eligible applicant" means a person or a political
subdivision.
(2)
"Eligible project" means a project that, upon completion,
will be a site and facility primarily intended for commercial,
industrial, or manufacturing use. "Eligible projects" do
not include sites and facilities intended primarily for residential,
retail, or government use.
(3)
"Person" has the same meaning as in section 5701.01 of the
Revised Code.
(4)
"Political subdivision" means a municipal corporation,
township, county, school district, or any other body corporate and
politic responsible for governmental activities in a geographic area
smaller than that of the state.
(5)
"SiteOhio certification program" means the program created
under this section.
(B)
There is hereby created the SiteOhio certification program to certify
and market eligible projects in the state. The program shall be
administered by the department of
housing
and
development.
(C)
An eligible applicant may apply to the director of
housing
and
development
on forms prescribed by the director for the director to certify an
eligible project. In addition to the application, the applicant shall
submit any additional materials required by the director. The
director shall establish scoring criteria, scoring instruments, and
materials for use by the department of
housing
and
development
in reviewing applications under the SiteOhio certification program.
The content of the scoring criteria, scoring instruments, and
materials shall be at the discretion of the director and may include,
where practicable, evaluation of certain quality of life indicators
and community assets. The scoring criteria, scoring instruments, and
materials shall be published and made available with the application.
Subject
to any limitations imposed under division (E)(2) of this section, the
director shall approve an application and certify the applicant's
eligible project if the applicant meets all of the scoring criteria
established by the director.
(D)
After the director of
housing
and
development
certifies an eligible project, the project shall be listed on the
department's web site. The director shall market certified eligible
projects to interested persons.
(E)
The director of
housing
and
development
shall adopt rules under Chapter 119. of the Revised Code necessary to
implement and operate the SiteOhio certification program. The rules
may provide for eligible applicants for certification to be charged
fees to cover administrative costs incurred by the department in the
administration of this section. Any fees collected under this section
shall be credited to the SiteOhio administration fund. The director
may do either of the following:
(1)
Contract with one or more persons to administer all or part of the
SiteOhio certification program.
(2)
Limit the number of eligible projects the director certifies
according to the available resources and capabilities of the
department.
Sec.
122.9512.
There
is hereby created in the state treasury the SiteOhio administration
fund. Money collected from the fees remitted by applicants for
certification under section 122.9511 of the Revised Code shall be
credited to the fund. The director of
housing
and
development
shall use the fund to pay the department's administrative expenses
for administering the SiteOhio certification program under section
122.9511 of the Revised Code.
Sec.
122.96.
The
director of
housing
and
development
may delegate to officers and employees of the department of
housing
and
development
any of the powers, duties, and functions of the director, other than
the promulgation of rules or the making of reports to the governor or
the general assembly, in connection with the issuance of bonds,
notes, or other obligations, the making or entering into of loans,
guarantees, inducement agreements, and other contracts, agreements,
assignments, certifications, and undertakings pursuant to Chapters
122., 140., 165., and 166. of the Revised Code, except that the
authority to adopt resolutions thereunder and to sign bonds and notes
may be delegated only to the assistant director or to a deputy
director of the department. Each such delegation shall be in writing,
shall state the functions delegated, the individuals to whom or the
offices or employment positions to which delegated, and the duration,
not exceeding one year, of the delegation, and shall be entered in
the journal of the director. Any such delegation may be extended or
revoked prospectively by writing signed by the director and entered
in
his
the director's
journal.
Sec.
123.01.
(A)
The department of administrative services, in addition to those
powers enumerated in Chapters 124. and 125. of the Revised Code and
provided elsewhere by law, shall exercise the following powers:
(1)
To prepare and suggest comprehensive plans for the development of
grounds and buildings under the control of a state agency;
(2)
To acquire, by purchase, gift, devise, lease, or grant, all real
estate required by a state agency, in the exercise of which power the
department may exercise the power of eminent domain, in the manner
provided by sections 163.01 to 163.22 of the Revised Code;
(3)
To erect, supervise, and maintain all public monuments and memorials
erected by the state, except where the supervision and maintenance is
otherwise provided by law;
(4)
To procure, by lease, storage accommodations for a state agency;
(5)
To lease or grant easements or licenses for unproductive and unused
lands or other property under the control of a state agency. Such
leases, easements, or licenses may be granted to any person or
entity, shall be for a period not to exceed fifteen years, unless a
longer period is authorized by division (A)(5) of this section, and
shall be executed for the state by the director of administrative
services. The director shall grant leases, easements, or licenses of
university land for periods not to exceed twenty-five years for
purposes approved by the respective university's board of trustees
wherein the uses are compatible with the uses and needs of the
university and may grant leases of university land for periods not to
exceed forty years for purposes approved by the respective
university's board of trustees pursuant to section 123.17 of the
Revised Code. The director may grant perpetual easements to public
utilities, as defined in section 4905.02 of the Revised Code or
described in section 4905.03 of the Revised Code.
(6)
To lease space for the use of a state agency;
(7)
To have general supervision and care of the storerooms, offices, and
buildings leased for the use of a state agency;
(8)
To exercise general custodial care of all real property of the state;
(9)
To assign and group together state offices in any city in the state
and to establish, in cooperation with the state agencies involved,
rules governing space requirements for office or storage use;
(10)
To lease for a period not to exceed forty years, pursuant to a
contract providing for the construction thereof under a
lease-purchase plan, buildings, structures, and other improvements
for any public purpose, and, in conjunction therewith, to grant
leases, easements, or licenses for lands under the control of a state
agency for a period not to exceed forty years. The lease-purchase
plan shall provide that at the end of the lease period, the
buildings, structures, and related improvements, together with the
land on which they are situated, shall become the property of the
state without cost.
(a)
Whenever any building, structure, or other improvement is to be so
leased by a state agency, the department shall retain either basic
plans, specifications, bills of materials, and estimates of cost with
sufficient detail to afford bidders all needed information or,
alternatively, all of the following plans, details, bills of
materials, and specifications:
(i)
Full and accurate plans suitable for the use of mechanics and other
builders in the improvement;
(ii)
Details to scale and full sized, so drawn and represented as to be
easily understood;
(iii)
Accurate bills showing the exact quantity of different kinds of
material necessary to the construction;
(iv)
Definite and complete specifications of the work to be performed,
together with such directions as will enable a competent mechanic or
other builder to carry them out and afford bidders all needed
information;
(v)
A full and accurate estimate of each item of expense and of the
aggregate cost thereof.
(b)
The department shall give public notice, in such newspaper, in such
form, and with such phraseology as the director of administrative
services prescribes, published once each week for four consecutive
weeks, of the time when and place where bids will be received for
entering into an agreement to lease to a state agency a building,
structure, or other improvement. The last publication shall be at
least eight days preceding the day for opening the bids. The bids
shall contain the terms upon which the builder would propose to lease
the building, structure, or other improvement to the state agency.
The form of the bid approved by the department shall be used, and a
bid is invalid and shall not be considered unless that form is used
without change, alteration, or addition. Before submitting bids
pursuant to this section, any builder shall comply with Chapter 153.
of the Revised Code.
(c)
On the day and at the place named for receiving bids for entering
into lease agreements with a state agency, the director of
administrative services shall open the bids and shall publicly
proceed immediately to tabulate the bids upon duplicate sheets. No
lease agreement shall be entered into until the bureau of workers'
compensation has certified that the person to be awarded the lease
agreement has complied with Chapter 4123. of the Revised Code, until,
if the builder submitting the lowest and best bid is a foreign
corporation, the secretary of state has certified that the
corporation is authorized to do business in this state, until, if the
builder submitting the lowest and best bid is a person nonresident of
this state, the person has filed with the secretary of state a power
of attorney designating the secretary of state as its agent for the
purpose of accepting service of summons in any action brought under
Chapter 4123. of the Revised Code, and until the agreement is
submitted to the attorney general and the attorney general's approval
is certified thereon. Within thirty days after the day on which the
bids are received, the department shall investigate the bids received
and shall determine that the bureau and the secretary of state have
made the certifications required by this section of the builder who
has submitted the lowest and best bid. Within ten days of the
completion of the investigation of the bids, the department shall
award the lease agreement to the builder who has submitted the lowest
and best bid and who has been certified by the bureau and secretary
of state as required by this section. If bidding for the lease
agreement has been conducted upon the basis of basic plans,
specifications, bills of materials, and estimates of costs, upon the
award to the builder the department, or the builder with the approval
of the department, shall appoint an architect or engineer licensed in
this state to prepare such further detailed plans, specifications,
and bills of materials as are required to construct the building,
structure, or improvement. The department shall adopt such rules as
are necessary to give effect to this section. The department may
reject any bid. Where there is reason to believe there is collusion
or combination among bidders, the bids of those concerned therein
shall be rejected.
(11)
To acquire by purchase, gift, devise, or grant and to transfer,
lease, or otherwise dispose of all real property required to assist
in the development of a conversion facility as defined in section
5709.30 of the Revised Code as that section existed before its repeal
by Amended Substitute House Bill 95 of the 125th general assembly;
(12)
To lease for a period not to exceed forty years, notwithstanding any
other division of this section, the state-owned property located at
408-450 East Town Street, Columbus, Ohio, formerly the state school
for the deaf, to a developer in accordance with this section.
"Developer," as used in this section, has the same meaning
as in section 123.77 of the Revised Code.
Such
a lease shall be for the purpose of development of the land for use
by senior citizens by constructing, altering, renovating, repairing,
expanding, and improving the site as it existed on June 25, 1982. A
developer desiring to lease the land shall prepare for submission to
the department a plan for development. Plans shall include provisions
for roads, sewers, water lines, waste disposal, water supply, and
similar matters to meet the requirements of state and local laws. The
plans shall also include provision for protection of the property by
insurance or otherwise, and plans for financing the development, and
shall set forth details of the developer's financial responsibility.
The
department may employ, as employees or consultants, persons needed to
assist in reviewing the development plans. Those persons may include
attorneys, financial experts, engineers, and other necessary experts.
The department shall review the development plans and may enter into
a lease if it finds all of the following:
(a)
The best interests of the state will be promoted by entering into a
lease with the developer;
(b)
The development plans are satisfactory;
(c)
The developer has established the developer's financial
responsibility and satisfactory plans for financing the development.
The
lease shall contain a provision that construction or renovation of
the buildings, roads, structures, and other necessary facilities
shall begin within one year after the date of the lease and shall
proceed according to a schedule agreed to between the department and
the developer or the lease will be terminated. The lease shall
contain such conditions and stipulations as the director considers
necessary to preserve the best interest of the state. Moneys received
by the state pursuant to this lease shall be paid into the general
revenue fund. The lease shall provide that at the end of the lease
period the buildings, structures, and related improvements shall
become the property of the state without cost.
(13)
To manage the use of space owned and controlled by the department by
doing all of the following:
(a)
Biennially implementing, by state agency location, a census of agency
employees assigned space;
(b)
Periodically in the discretion of the director of administrative
services:
(i)
Requiring each state agency to categorize the use of space allotted
to the agency between office space, common areas, storage space, and
other uses, and to report its findings to the department;
(ii)
Creating and updating a master space utilization plan for all space
allotted to state agencies. The plan shall incorporate space
utilization metrics.
(iii)
Conducting a cost-benefit analysis to determine the effectiveness of
state-owned buildings;
(iv)
Assessing the alternatives associated with consolidating the
commercial leases for buildings located in Columbus.
(c)
Commissioning a comprehensive space utilization and capacity study in
order to determine the feasibility of consolidating existing
commercially leased space used by state agencies into a new
state-owned facility.
(14)
To adopt rules to ensure that energy efficiency and conservation is
considered in the purchase of products and equipment, except motor
vehicles, by any state agency, department, division, bureau, office,
unit, board, commission, authority, quasi-governmental entity, or
institution. The department may require minimum energy efficiency
standards for purchased products and equipment based on federal
testing and labeling if available or on standards developed by the
department. When possible, the rules shall apply to the competitive
selection of energy consuming systems, components, and equipment
under Chapter 125. of the Revised Code.
(15)
To ensure energy efficient and energy conserving purchasing practices
by doing all of the following:
(a)
Identifying available energy efficiency and conservation
opportunities;
(b)
Providing for interchange of information among purchasing agencies;
(c)
Identifying laws, policies, rules, and procedures that should be
modified;
(d)
Monitoring experience with and the cost-effectiveness of this state's
purchase and use of motor vehicles and of major energy-consuming
systems, components, equipment, and products having a significant
impact on energy consumption by the government;
(e)
Providing technical assistance and training to state employees
involved in the purchasing process;
(f)
Working with the department of
housing
and
development
to make recommendations regarding planning and implementation of
purchasing policies and procedures that are supportive of energy
efficiency and conservation.
(16)
To require all state agencies, departments, divisions, bureaus,
offices, units, commissions, boards, authorities, quasi-governmental
entities, institutions, and state institutions of higher education to
implement procedures to ensure that all of the passenger automobiles
they acquire in each fiscal year, except for those passenger
automobiles acquired for use in law enforcement or emergency rescue
work, achieve a fleet average fuel economy of not less than the fleet
average fuel economy for that fiscal year as the department shall
prescribe by rule. The department shall adopt the rule prior to the
beginning of the fiscal year, in accordance with the average fuel
economy standards established by federal law for passenger
automobiles manufactured during the model year that begins during the
fiscal year.
Each
state agency, department, division, bureau, office, unit, commission,
board, authority, quasi-governmental entity, institution, and state
institution of higher education shall determine its fleet average
fuel economy by dividing the total number of passenger vehicles
acquired during the fiscal year, except for those passenger vehicles
acquired for use in law enforcement or emergency rescue work, by a
sum of terms, each of which is a fraction created by dividing the
number of passenger vehicles of a given make, model, and year, except
for passenger vehicles acquired for use in law enforcement or
emergency rescue work, acquired during the fiscal year by the fuel
economy measured by the administrator of the United States
environmental protection agency, for the given make, model, and year
of vehicle, that constitutes an average fuel economy for combined
city and highway driving.
As
used in division (A)(16) of this section, "acquired" means
leased for a period of sixty continuous days or more, or purchased.
(17)
To correct legal descriptions or title defects, or release fractional
interests in real property, as necessary to cure title clouds
reflected in public records, including those resulting from boundary
disputes, ingress or egress issues, title transfers precipitated
through retirement of bond requirements, and the retention of
fractional interests in real estate otherwise disposed of in previous
title transfers.
(18)(a)
To, with controlling board approval, sell state-owned real property
that is not held for the benefit of an institution of higher
education and is appraised at not more than one hundred thousand
dollars by an independent third-party appraiser.
(b)
To sell state-owned real property that is held for the benefit of an
institution of higher education, provided all of the following are
true:
(i)
The board of trustees of the institution of higher education, or, in
the case of a university branch district, any other managing
authority, adopts a resolution approving the sale;
(ii)
The real property is appraised at not more than ten million dollars
by an independent third-party appraiser;
(iii)
The controlling board approves the sale.
Notwithstanding
any provision of law to the contrary, net proceeds from any
disposition of real property made pursuant to division (A)(18) of
this section shall, at the direction of the director of budget and
management, be credited to a fund or funds in the state treasury, or
to accounts held by an institution of higher education for purposes
to be determined by the institution.
As
used in division (A)(18) of this section, "institution of higher
education" has the same meaning as in section 3345.12 of the
Revised Code.
(B)
This section and section 125.02 of the Revised Code shall not
interfere with any of the following:
(1)
The power of the adjutant general to purchase military supplies, or
with the custody of the adjutant general of property leased,
purchased, or constructed by the state and used for military
purposes, or with the functions of the adjutant general as director
of state armories;
(2)
The power of the director of transportation in acquiring
rights-of-way for the state highway system, or the leasing of lands
for division or resident district offices, or the leasing of lands or
buildings required in the maintenance operations of the department of
transportation, or the purchase of real property for garage sites or
division or resident district offices, or in preparing plans and
specifications for and constructing such buildings as the director
may require in the administration of the department;
(3)
The power of the director of public safety and the registrar of motor
vehicles to purchase or lease real property and buildings to be used
solely as locations to which a deputy registrar is assigned pursuant
to division (B) of section 4507.011 of the Revised Code and from
which the deputy registrar is to conduct the deputy registrar's
business, the power of the director of public safety to purchase or
lease real property and buildings to be used as locations for
division or district offices as required in the maintenance of
operations of the department of public safety, and the power of the
superintendent of the state highway patrol in the purchase or leasing
of real property and buildings needed by the patrol, to negotiate the
sale of real property owned by the patrol, to rent or lease real
property owned or leased by the patrol, and to make or cause to be
made repairs to all property owned or under the control of the
patrol;
(4)
The power of the division of liquor control in the leasing or
purchasing of retail outlets and warehouse facilities for the use of
the division;
(5)
The power of the director of
housing
and
development
to enter into leases of real property, buildings, and office space to
be used solely as locations for the state's foreign offices to carry
out the purposes of section 122.05 of the Revised Code;
(6)
The power of the director of environmental protection to enter into
environmental covenants, to grant and accept easements, or to sell
property pursuant to division (G) of section 3745.01 of the Revised
Code;
(7)
The power of the department of public safety under section 5502.01 of
the Revised Code to direct security measures and operations for the
Vern Riffe center and the James A. Rhodes state office tower. The
department of administrative services shall implement all security
measures and operations at the Vern Riffe center and the James A.
Rhodes state office tower as directed by the department of public
safety.
(C)
Purchases for, and the custody and repair of, buildings under the
management and control of the capitol square review and advisory
board, the opportunities for Ohioans with disabilities agency, the
bureau of workers' compensation, or the departments of public safety,
job and family services, mental health and addiction services,
developmental disabilities, and rehabilitation and correction;
buildings of educational and benevolent institutions under the
management and control of boards of trustees; and purchases or leases
for, and the custody and repair of, office space used for the
purposes of any agency of the legislative branch of state government
are not subject to the control and jurisdiction of the department of
administrative services.
An
agency of the legislative branch of state government that uses office
space in a building under the management and control of the
department of administrative services may exercise the agency's
authority to improve the agency's office space as authorized under
this division only if, upon review, the department of administrative
services concludes the proposed improvements do not adversely impact
the structural integrity of the building.
If
an agency of the legislative branch of state government, except the
capitol square review and advisory board, so requests, the agency and
the director of administrative services may enter into a contract
under which the department of administrative services agrees to
perform any services requested by the agency that the department is
authorized under this section to perform. In performing such
services, the department shall not use competitive selection. As used
in this division, "competitive selection" has the meaning
defined in section 125.01 of the Revised Code and includes any other
type of competitive process for the selection of persons producing or
dealing in the services to be provided.
(D)
Any instrument by which real property is acquired pursuant to this
section shall identify the agency of the state that has the use and
benefit of the real property as specified in section 5301.012 of the
Revised Code.
Sec.
123.22.
(A)
As used in this section:
(1)
"Construct" includes reconstruct, improve, renovate,
enlarge, or otherwise alter.
(2)
"Energy consumption analysis" means the evaluation of all
energy consuming systems, components, and equipment by demand and
type of energy, including the internal energy load imposed on a
facility by its occupants and the external energy load imposed by
climatic conditions.
(3)
"Facility" means a building or other structure, or part of
a building or other structure, that includes provision for a heating,
refrigeration, ventilation, cooling, lighting, hot water, or other
major energy consuming system, component, or equipment.
(4)
"Life-cycle cost analysis" means a general approach to
economic evaluation that takes into account all dollar costs related
to owning, operating, maintaining, and ultimately disposing of a
project over the appropriate study period.
(5)
"Political subdivision" means a county, township, municipal
corporation, board of education of any school district, or any other
body corporate and politic that is responsible for government
activities in a geographic area smaller than that of the state.
(6)
"State funded" means funded in whole or in part through
appropriation by the general assembly or through the use of any
guarantee provided by this state.
(7)
"State institution of higher education" has the same
meaning as in section 3345.011 of the Revised Code.
(8)
"Cogeneration" means the simultaneous production of thermal
energy and electricity for use primarily within a building or complex
of buildings.
(B)
The Ohio facilities construction commission shall develop energy
efficiency and conservation programs for new construction design and
review and for existing building audit and retrofit.
The
commission may accept and administer grants from public and private
sources for carrying out any of its duties under this section.
(C)
No state agency, department, division, bureau, office, unit, board,
commission, authority, quasi-governmental entity, or institution
shall construct or cause to be constructed, within the limits
prescribed in this section, a state-funded facility without a proper
life-cycle cost analysis as computed or prepared by a qualified
architect or engineer in accordance with the rules required by
division (D) of this section.
Construction
shall proceed only upon the disclosure to the commission, for the
facility chosen, of the life-cycle costs as determined in this
section and the capitalization of the initial construction costs of
the building. The results of life-cycle cost analysis shall be a
primary consideration in the selection of a building design. That
analysis shall be required only for construction of buildings with an
area of twenty thousand square feet or greater, except the commission
may waive this requirement or may require an analysis for buildings
with an area of less than twenty thousand square feet. For projects
with an estimated construction cost exceeding fifty million dollars,
the analysis shall include a review of cogeneration as an energy
source.
Nothing
in this section shall deprive or limit any state agency that has
review authority over design or construction plans from requiring a
life-cycle cost analysis or energy consumption analysis.
(D)
For the purposes of assisting the commission in its responsibility
for state-funded facilities pursuant to section 123.21 of the Revised
Code and of cost-effectively reducing the energy consumption of those
and any other state-funded facilities, thereby promoting fiscal,
economic, and environmental benefits to this state, the commission
shall promulgate rules specifying cost-effective, energy efficiency
and conservation standards that may govern the design, construction,
operation, and maintenance of all state-funded facilities, except
facilities of state institutions of higher education or facilities
operated by a political subdivision. The
department
of housing and
development
services
agency
shall
cooperate in providing information and technical expertise to the
commission to ensure promulgation of rules of maximum effectiveness.
The standards prescribed by rules promulgated under this division may
draw from or incorporate, by reference or otherwise and in whole or
in part, standards already developed or implemented by any competent,
public or private standards organization or program. The rules also
may include any of the following:
(1)
Specifications for a life-cycle cost analysis that shall determine,
for the economic life of such state-funded facility, the reasonably
expected costs of facility ownership, operation, and maintenance
including labor and materials. Life-cycle cost may be expressed as an
annual cost for each year of the facility's use.
A
life-cycle cost analysis additionally may include an energy
consumption analysis that conforms to division (D)(2) of this
section.
(2)
Specifications for an energy consumption analysis of the facility's
heating, refrigeration, ventilation, cooling, lighting, hot water,
and other major energy consuming systems, components, and equipment.
A
life-cycle cost analysis and energy consumption analysis shall be
based on the best currently available methods of analysis, such as
those of the national institute of standards and technology, the
United States department of energy or other federal agencies,
professional societies, and directions developed by the department.
(3)
Specifications for energy performance indices, to be used to audit
and evaluate competing design proposals submitted to the state.
(4)
A process by which a manager of a specified state-funded facility,
except a facility of a state institution of higher education or a
facility operated by a political subdivision, may receive a waiver of
compliance with any provision of the rules required by divisions
(D)(1) to (3) of this section.
(E)
Each state agency, department, division, bureau, office, unit, board,
commission, authority, quasi-governmental entity, institution, and
state institution of higher education shall comply with any
applicable provision of this section or of a rule promulgated
pursuant to division (D) of this section.
Sec.
125.08.
Any
person who is certified by the director of
housing
and
development
in accordance with the rules adopted under division (B)(1) of section
122.921 of the Revised Code as a minority business enterprise may
have that person's name placed on a special minority business
enterprise notification list to be used in connection with contracts
awarded under section 125.081 of the Revised Code. The minority
business enterprise notification list shall be used for bidding on
contracts set aside for minority business enterprises only.
Sec.
125.081.
(A)
From the purchases that the department of administrative services is
required by law to make through competitive selection, the director
of administrative services shall select a number of such purchases,
the aggregate value of which equals approximately fifteen per cent of
the estimated total value of all such purchases to be made in the
current fiscal year. The director shall set aside the purchases
selected for competition only by minority business enterprises, as
defined in division (E)(1) of section 122.71 of the Revised Code. The
competitive selection procedures for such purchases set aside shall
be the same as for all other purchases the department is required to
make through competitive selection, except that only minority
business enterprises certified by the director of
housing
and
development
in accordance with the rules adopted under division (B)(1) of section
122.921 of the Revised Code and listed under section 125.08 of the
Revised Code shall be qualified to compete.
(B)
To the extent that any agency of the state, other than the department
of administrative services, the legislative and judicial branches,
boards of elections, and the adjutant general, is authorized to make
purchases, the agency shall set aside a number of purchases, the
aggregate value of which equals approximately fifteen per cent of the
aggregate value of such purchases for the current fiscal year for
competition by minority business enterprises only. The procedures for
such purchases shall be the same as for all other such purchases made
by the agency, except that only minority business enterprises
certified by the director of
housing
and
development
in accordance with rules adopted under division (B)(1) of section
123.151 of the Revised Code shall be qualified to compete.
(C)
In the case of purchases set aside under division (A) or (B) of this
section, if no bid is submitted by a minority business enterprise,
the purchase shall be made according to usual procedures. The
contracting agency shall from time to time set aside such additional
purchases for which only minority business enterprises may compete,
as are necessary to replace those purchases previously set aside for
which no minority business enterprises bid and to ensure that, in any
fiscal year, the aggregate amount of contracts awarded to minority
business enterprises will equal approximately fifteen per cent of the
total amount of contracts awarded by the agency.
(D)
The provisions of this section shall not preclude any minority
business enterprise from competing for any other state purchases that
are not specifically set aside for minority business enterprises.
(E)
No funds of any state agency shall be expended in any fiscal year for
any purchase for which competitive selection is required, until the
director of the department of administrative services certifies to
the clerk of the senate and the clerk of the house of representatives
of the general assembly that approximately fifteen per cent of the
aggregate amount of the projected expenditure for such purchases in
the fiscal year has been set aside as provided for in this section.
(F)
Any person who intentionally misrepresents self as owning,
controlling, operating, or participating in a minority business
enterprise for the purpose of obtaining contracts, subcontracts, or
any other benefits under this section shall be guilty of theft by
deception as provided for in section 2913.02 of the Revised Code.
Sec.
125.111.
(A)
Every contract for or on behalf of the state or any of its political
subdivisions for any purchase shall contain provisions similar to
those required by section 153.59 of the Revised Code in the case of
construction contracts by which the contractor agrees to both of the
following:
(1)
That, in the hiring of employees for the performance of work under
the contract or any subcontract, no contractor or subcontractor, by
reason of race, color, religion, sex, age, disability or military
status as defined in section 4112.01 of the Revised Code, national
origin, or ancestry, shall discriminate against any citizen of this
state in the employment of a person qualified and available to
perform the work to which the contract relates;
(2)
That no contractor, subcontractor, or person acting on behalf of any
contractor or subcontractor, in any manner, shall discriminate
against, intimidate, or retaliate against any employee hired for the
performance of work under the contract on account of race, color,
religion, sex, age, disability or military status as defined in
section 4112.01 of the Revised Code, national origin, or ancestry.
(B)
All contractors from whom the state or any of its political
subdivisions make purchases shall have a written affirmative action
program for the employment and effective utilization of economically
disadvantaged persons, as referred to in division (E)(1) of section
122.71 of the Revised Code. Annually, each such contractor shall file
a description of the affirmative action program and a progress report
on its implementation with the department of
housing
and
development.
Sec.
125.20.
(A)
Within one hundred eighty days after
the effective date of this section
October 16, 2009
,
the director of administrative services shall establish an electronic
site accessible through the internet to publish the following:
(1)
(A)
A database containing each state employee's gross pay from the most
recent pay period. The database shall contain the name of the agency,
position title, and employee name.
(2)
(B)
A database containing tax credits issued by the director of
housing
and
development
to business entities that shall contain the name under which the tax
credit is known, the name of the entity receiving the credit, and the
county in which the credit recipient's principal place of business in
this state is located.
(C)
The director of administrative services may adopt rules governing the
means by which information is submitted and databases are updated.
Sec.
125.836.
(A)
As used in this section:
(1)
"Biodiesel," "blended biodiesel," and "diesel
fuel" have the same meanings as in section 125.831 of the
Revised Code.
(2)
"Incremental cost" means the difference in cost between
blended biodiesel and conventional petroleum-based diesel fuel at the
time the blended biodiesel is purchased.
(B)
There is hereby created in the state treasury the "biodiesel
revolving fund," to which shall be credited moneys appropriated
to the fund by the general assembly and any other moneys obtained or
accepted by the
department
of housing and
development
services
agency
for
crediting to the fund. Moneys credited to the fund shall be used to
pay for the incremental cost of biodiesel for use in vehicles owned
or leased by the state that use diesel fuel. The director of
housing
and
development
services
may
direct the director of budget and management to transfer available
moneys in the biodiesel revolving fund to the alternative fuel
transportation fund created in section 122.075 of the Revised Code to
be used by the
department
of housing and
development
services
agency
for
the purposes specified in that section.
Sec.
125.901.
(A)
There is hereby established the Ohio geographically referenced
information program council within the department of administrative
services to coordinate the property owned by the state. The
department of administrative services shall provide administrative
support for the council.
(B)
The council shall consist of the following fourteen members:
(1)
The state chief information officer, or the officer's designee, who
shall serve as the council chair;
(2)
The director of natural resources, or the director's designee;
(3)
The director of transportation, or the director's designee;
(4)
The director of environmental protection, or the director's designee;
(5)
The director of
housing
and
development,
or the director's designee;
(6)
The attorney general, or the attorney general's designee;
(7)
The chancellor of higher education or the chancellor's designee;
(8)
The chief of the division of oil and gas resources management in the
department of natural resources or the chief's designee;
(9)
The director of public safety or the director's designee;
(10)
The executive director of the county auditors' association or the
executive director's designee;
(11)
The executive director of the county commissioners' association or
the executive director's designee;
(12)
The executive director of the county engineers' association or the
executive director's designee;
(13)
The executive director of the Ohio municipal league or the executive
director's designee;
(14)
The executive director of the Ohio townships association or the
executive director's designee.
(C)
Members of the council shall serve without compensation.
Sec.
126.023.
Whenever,
pursuant to section 126.06 of the Revised Code, the department of
housing
and
development
files with the director of budget and management its estimate of
proposed expenditures for the succeeding biennium, the department
shall request, and the director of budget and management shall
approve the request for, the following general revenue fund
appropriations for operating the construction compliance section of
the department of
housing
and
development:
(A)
For the first fiscal year of the biennium, an appropriation equal to
fifty-three one-thousandths of one per cent of the total new capital
appropriations provided for in the most recently enacted main capital
appropriations act;
(B)
For the second fiscal year of the biennium, an appropriation equal to
the amount computed under division (A) of this section, adjusted for
anticipated changes in operating costs based upon the
inflation/deflation factor used by the director of budget and
management for that fiscal year.
The
amounts of the appropriations requested pursuant to divisions (A) and
(B) of this section shall be in addition to the amounts provided for
staff in the construction compliance section of the equal employment
opportunity office of the department of administrative services as of
January 1, 1988.
Sec.
126.32.
(A)
Any officer of any state agency may authorize reimbursement for
travel, including the costs of transportation, for lodging, and for
meals to any person who is interviewing for a position that is
classified in pay range 13 or above in schedule E-1 or is classified
in schedule E-2 of section 124.152 of the Revised Code.
(B)
If a person is appointed to a position listed in section 121.03 of
the Revised Code, to the position of chairperson of the industrial
commission, adjutant general, chancellor of the Ohio board of
regents, superintendent of public instruction, chairperson of the
public utilities commission of Ohio, or director of the state lottery
commission, to a position holding a fiduciary relationship to the
governor, to a position of an appointing authority of the department
of mental health and addiction services, developmental disabilities,
or rehabilitation and correction, to a position of superintendent in
the department of youth services, or to a position under section
122.05 of the Revised Code, and if that appointment requires a
permanent change of residence, the appropriate state agency may
reimburse the person for the person's actual and necessary expenses,
including the cost of in-transit storage of household goods and
personal effects, of moving the person and members of the person's
immediate family residing in the person's household, and of moving
their household goods and personal effects, to the person's new
location.
Until
that person moves the person's permanent residence to the new
location, but not for a period that exceeds thirty consecutive days,
the state agency may reimburse the person for the person's temporary
living expenses at the new location that the person has incurred on
behalf of the person and members of the person's immediate family
residing in the person's household. In addition, the state agency may
reimburse that person for the person's travel expenses between the
new location and the person's former residence during this period for
a maximum number of trips specified by rule of the director of budget
and management, but the state agency shall not reimburse the person
for travel expenses incurred for those trips by members of the
person's immediate family. With the prior written approval of the
director, the maximum thirty-day period for temporary living expenses
may be extended for a person appointed to a position under section
122.05 of the Revised Code.
The
director of
housing
and
development
services
may
reimburse a person appointed to a position under section 122.05 of
the Revised Code for the person's actual and necessary expenses of
moving the person and members of the person's immediate family
residing in the person's household back to the United States and may
reimburse a person appointed to such a position for the cost of
storage of household goods and personal effects of the person and the
person's immediate family while the person is serving outside the
United States, if the person's office outside the United States is
the person's primary job location.
(C)
All reimbursement under division (A) or (B) of this section shall be
made in the manner, and at rates that do not exceed those, provided
by rule of the director of budget and management in accordance with
section 111.15 of the Revised Code. Reimbursements may be made under
division (B) of this section directly to the persons who incurred the
expenses or directly to the providers of goods or services the
persons receive, as determined by the director of budget and
management.
Sec.
126.62.
(A)
The all Ohio future fund is hereby created in the state treasury. The
fund shall consist of money credited to it and any donations, gifts,
bequests, or other money received for deposit in the fund. All
investment earnings of the fund shall be credited to the fund. Money
in the fund shall be used to promote economic development throughout
the state,
including
by
funding the installation or improvement of
infrastructure
projects
and other infrastructure improvements
that
is a critical component for either of the following:
(1)
Site-readiness and preparation;
(2)
Housing to accommodate a growing workforce
.
(B)
The director shall adopt rules in accordance with Chapter 119. of the
Revised Code that establish requirements and procedures to provide
financial assistance from the all Ohio future fund. The director
shall consult with JobsOhio in adopting the rules.
(C)
No money shall be expended from the all Ohio future fund, pursuant to
appropriation, until it has been released by the controlling board.
Sec.
140.01.
As
used in this chapter:
(A)
"Hospital agency" means any public hospital agency or any
nonprofit hospital agency.
(B)
"Public hospital agency" means any county, board of county
hospital trustees established pursuant to section 339.02 of the
Revised Code, county hospital commission established pursuant to
section 339.14 of the Revised Code, municipal corporation, new
community authority organized under Chapter 349. of the Revised Code,
joint township hospital district, state or municipal university or
college operating or authorized to operate a hospital facility, or
the state.
(C)
"Nonprofit hospital agency" means a corporation or
association not for profit, no part of the net earnings of which
inures or may lawfully inure to the benefit of any private
shareholder or individual, that has authority to own or operate a
hospital facility or provides or is to provide services to one or
more other hospital agencies.
(D)
"Governing body" means, in the case of a county, the board
of county commissioners or other legislative body; in the case of a
board of county hospital trustees, the board; in the case of a county
hospital commission, the commission; in the case of a municipal
corporation, the council or other legislative authority; in the case
of a new community authority, its board of trustees; in the case of a
joint township hospital district, the joint township district
hospital board; in the case of a state or municipal university or
college, its board of trustees or board of directors; in the case of
a nonprofit hospital agency, the board of trustees or other body
having general management of the agency; and, in the case of the
state, the director of
housing
and
development
or the Ohio higher educational facility commission.
(E)
"Hospital facilities" means buildings, structures and other
improvements, additions thereto and extensions thereof, furnishings,
equipment, and real estate and interests in real estate, used or to
be used for or in connection with one or more hospitals, emergency,
intensive, intermediate, extended, long-term, or self-care
facilities, diagnostic and treatment and out-patient facilities,
facilities related to programs for home health services, clinics,
laboratories, public health centers, research facilities, and
rehabilitation facilities, for or pertaining to diagnosis, treatment,
care, or rehabilitation of persons who are sick, ill, injured,
infirm, or impaired or who have disabilities, or the prevention,
detection, and control of disease, and also includes education,
training, and food service facilities for health professions
personnel, housing facilities for such personnel and their families,
and parking and service facilities in connection with any of the
foregoing; and includes any one, part of, or any combination of the
foregoing; and further includes site improvements, utilities,
machinery, facilities, furnishings, and any separate or connected
buildings, structures, improvements, sites, utilities, facilities, or
equipment to be used in, or in connection with the operation or
maintenance of, or supplementing or otherwise related to the services
or facilities to be provided by, any one or more of such hospital
facilities.
(F)
"Costs of hospital facilities" means the costs of acquiring
hospital facilities or interests in hospital facilities, including
membership interests in nonprofit hospital agencies, costs of
constructing hospital facilities, costs of improving one or more
hospital facilities, including reconstructing, rehabilitating,
remodeling, renovating, and enlarging, costs of equipping and
furnishing such facilities, and all financing costs pertaining
thereto, including, without limitation thereto, costs of engineering,
architectural, and other professional services, designs, plans,
specifications and surveys, and estimates of cost, costs of tests and
inspections, the costs of any indemnity or surety bonds and premiums
on insurance, all related direct or allocable administrative expenses
pertaining thereto, fees and expenses of trustees, depositories, and
paying agents for the obligations, cost of issuance of the
obligations and financing charges and fees and expenses of financial
advisors, attorneys, accountants, consultants and rating services in
connection therewith, capitalized interest on the obligations,
amounts necessary to establish reserves as required by the bond
proceedings, the reimbursement of all moneys advanced or applied by
the hospital agency or others or borrowed from others for the payment
of any item or items of costs of such facilities, and all other
expenses necessary or incident to planning or determining feasibility
or practicability with respect to such facilities, and such other
expenses as may be necessary or incident to the acquisition,
construction, reconstruction, rehabilitation, remodeling, renovation,
enlargement, improvement, equipment, and furnishing of such
facilities, the financing thereof, and the placing of the same in use
and operation, including any one, part of, or combination of such
classes of costs and expenses, and means the costs of refinancing
obligations issued by, or reimbursement of money advanced by,
nonprofit hospital agencies or others the proceeds of which were used
for the payment of costs of hospital facilities, if the governing
body of the public hospital agency determines that the refinancing or
reimbursement advances the purposes of this chapter, whether or not
the refinancing or reimbursement is in conjunction with the
acquisition or construction of additional hospital facilities.
(G)
"Hospital receipts" means all moneys received by or on
behalf of a hospital agency from or in connection with the ownership,
operation, acquisition, construction, improvement, equipping, or
financing of any hospital facilities, including, without limitation
thereto, any rentals and other moneys received from the lease, sale,
or other disposition of hospital facilities, and any gifts, grants,
interest subsidies, or other moneys received under any federal
program for assistance in financing the costs of hospital facilities,
and any other gifts, grants, and donations, and receipts therefrom,
available for financing the costs of hospital facilities.
(H)
"Obligations" means bonds, notes, or other evidences of
indebtedness or obligation, including interest coupons pertaining
thereto, issued or issuable by a public hospital agency to pay costs
of hospital facilities.
(I)
"Bond service charges" means principal, interest, and call
premium, if any, required to be paid on obligations.
(J)
"Bond proceedings" means one or more ordinances,
resolutions, trust agreements, indentures, and other agreements or
documents, and amendments and supplements to the foregoing, or any
combination thereof, authorizing or providing for the terms,
including any variable interest rates, and conditions applicable to,
or providing for the security of, obligations and the provisions
contained in such obligations.
(K)
"Nursing home" has the same meaning as in division (A)(1)
of section 5701.13 of the Revised Code.
(L)
"Residential care facility" has the same meaning as in
division (A)(2) of section 5701.13 of the Revised Code.
(M)
"Independent living facility" means any self-care facility
or other housing facility designed or used as a residence for elderly
persons. An "independent living facility" does not include
a residential facility, or that part of a residential facility, that
is any of the following:
(1)
A hospital;
(2)
A nursing home or residential care facility;
(3)
A facility operated by a hospice care program licensed under section
3712.04 of the Revised Code and used for the program's hospice
patients;
(4)
A residential facility licensed by the department of mental health
and addiction services under section 5119.34 of the Revised Code that
provides accommodations, supervision, and personal care services for
three to sixteen unrelated adults;
(5)
A residential facility licensed by the department of mental health
and addiction services under section 5119.34 of the Revised Code that
is not a residential facility described in division (M)(4) of this
section;
(6)
A facility licensed to operate an opioid treatment program under
section 5119.37 of the Revised Code;
(7)
A community addiction services provider, as defined in section
5119.01 of the Revised Code;
(8)
A residential facility licensed under section 5123.19 of the Revised
Code or a facility providing services under a contract with the
department of developmental disabilities under section 5123.18 of the
Revised Code;
(9)
A residential facility used as part of a hospital to provide housing
for staff of the hospital or students pursuing a course of study at
the hospital.
Sec.
145.035.
Notwithstanding
section 145.03 of the Revised Code, an individual employed by, or
otherwise compensated with state funds appropriated to, the
department of
housing
and
development
who is principally located outside of the United States and is or
intends to become a member of a foreign government's retirement or
social security system in lieu of becoming a member of the public
employees retirement system may choose to be exempted from membership
in the public employees retirement system by signing a written
application for exemption within the first month after being employed
and filing such application with the public employees retirement
board. The application, when approved as to form by the board and
filed with the employer, shall be irrevocable while the individual is
continuously employed as described in this section and such
individual shall forever be barred from claiming or purchasing
membership rights or credit for the particular period covered by the
exemption. Any individual who is or becomes a member of the public
employees retirement system shall continue the membership as long as
he
the individual
is a public employee, even though
he
the individual
may be in or transferred to employment described in this section.
Sec.
149.311.
(A)
As used in this section:
(1)
"Historic building" means a building, including its
structural components, that is located in this state and that is
either individually listed on the national register of historic
places under 16 U.S.C. 470a, located in a registered historic
district, and certified by the state historic preservation officer as
being of historic significance to the district, or is individually
listed as an historic landmark designated by a local government
certified under 16 U.S.C. 470a(c).
(2)
"Qualified rehabilitation expenditures" means expenditures
paid or incurred during the rehabilitation period, and before and
after that period as determined under 26 U.S.C. 47, by an owner or
qualified lessee of an historic building to rehabilitate the
building. "Qualified rehabilitation expenditures" includes
architectural or engineering fees paid or incurred in connection with
the rehabilitation, and expenses incurred in the preparation of
nomination forms for listing on the national register of historic
places. "Qualified rehabilitation expenditures" does not
include any of the following:
(a)
The cost of acquiring, expanding, or enlarging an historic building;
(b)
Expenditures attributable to work done to facilities related to the
building, such as parking lots, sidewalks, and landscaping;
(c)
New building construction costs.
(3)
"Owner" of an historic building means a person holding the
fee simple interest in the building. "Owner" does not
include the state or a state agency, or any political subdivision as
defined in section 9.23 of the Revised Code.
(4)
"Qualified lessee" means a person subject to a lease
agreement for an historic building and eligible for the federal
rehabilitation tax credit under 26 U.S.C. 47. "Qualified lessee"
does not include the state or a state agency or political subdivision
as defined in section 9.23 of the Revised Code.
(5)
"Certificate owner" means the owner or qualified lessee of
an historic building to which a rehabilitation tax credit certificate
was issued under this section.
(6)
"Registered historic district" means an historic district
listed in the national register of historic places under 16 U.S.C.
470a, an historic district designated by a local government certified
under 16 U.S.C. 470a(c), or a local historic district certified under
36 C.F.R. 67.8 and 67.9.
(7)
"Rehabilitation" means the process of repairing or altering
an historic building or buildings, making possible an efficient use
while preserving those portions and features of the building and its
site and environment that are significant to its historic,
architectural, and cultural values.
(8)
"Rehabilitation period" means one of the following:
(a)
If the rehabilitation initially was not planned to be completed in
stages, a period chosen by the owner or qualified lessee not to
exceed twenty-four months during which rehabilitation occurs;
(b)
If the rehabilitation initially was planned to be completed in
stages, a period chosen by the owner or qualified lessee not to
exceed sixty months during which rehabilitation occurs. Each stage
shall be reviewed as a phase of a rehabilitation as determined under
26 C.F.R. 1.48-12 or a successor to that section.
(9)
"State historic preservation officer" or "officer"
means the state historic preservation officer appointed by the
governor under 16 U.S.C. 470a.
(10)
"Catalytic project" means the rehabilitation of an historic
building, the rehabilitation of which will foster economic
development within two thousand five hundred feet of the historic
building.
(B)
The owner or qualified lessee of an historic building may apply to
the director of
housing
and
development
for a rehabilitation tax credit certificate for qualified
rehabilitation expenditures paid or incurred by such owner or
qualified lessee after April 4, 2007, for rehabilitation of an
historic building. If the owner of an historic building enters a
pass-through agreement with a qualified lessee for the purposes of
the federal rehabilitation tax credit under 26 U.S.C. 47, the
qualified rehabilitation expenditures paid or incurred by the owner
after April 4, 2007, may be attributed to the qualified lessee.
The
form and manner of filing such applications shall be prescribed by
rule of the director. Each application shall state the amount of
qualified rehabilitation expenditures the applicant estimates will be
paid or incurred and shall indicate whether the historic building was
used as a theater before, and is intended to be used as a theater
after, the rehabilitation. The director may require applicants to
furnish documentation of such estimates.
The
director, after consultation with the tax commissioner and in
accordance with Chapter 119. of the Revised Code, shall adopt rules
that establish all of the following:
(1)
Forms and procedures by which applicants may apply for rehabilitation
tax credit certificates;
(2)
Criteria for reviewing, evaluating, and approving applications for
certificates within the limitations under division (D) of this
section, criteria for assuring that the certificates issued encompass
a mixture of high and low qualified rehabilitation expenditures, and
criteria for issuing certificates under division (C)(3)(b) of this
section;
(3)
Eligibility requirements for obtaining a certificate under this
section;
(4)
The form of rehabilitation tax credit certificates;
(5)
Reporting requirements and monitoring procedures;
(6)
Procedures and criteria for conducting cost-benefit analyses of
historic buildings that are the subjects of applications filed under
this section. The purpose of a cost-benefit analysis shall be to
determine whether rehabilitation of the historic building will result
in a net revenue gain in state and local taxes once the building is
used.
(7)
Any other rules necessary to implement and administer this section.
(C)
The director shall review the applications with the assistance of the
state historic preservation officer and determine whether all of the
following criteria are met:
(1)
That the building that is the subject of the application is an
historic building and the applicant is the owner or qualified lessee
of the building;
(2)
That the rehabilitation will satisfy standards prescribed by the
United States secretary of the interior under 16 U.S.C. 470, et seq.,
as amended, and 36 C.F.R. 67.7 or a successor to that section;
(3)
That receiving a rehabilitation tax credit certificate under this
section is a major factor in:
(a)
The applicant's decision to rehabilitate the historic building; or
(b)
To increase the level of investment in such rehabilitation.
(4)
The historic building that is the subject of the application is not,
and will not upon completion of the rehabilitation project be, part
of a qualified low-income housing project allocated a tax credit
pursuant to section 42 of the Internal Revenue Code.
An
applicant shall demonstrate to the satisfaction of the state historic
preservation officer and director that the rehabilitation will
satisfy the standards described in division (C)(2) of this section
before the applicant begins the physical rehabilitation of the
historic building.
(D)(1)
If the director determines that an application meets the criteria in
division (C) of this section, the director shall conduct a
cost-benefit analysis for the historic building that is the subject
of the application to determine whether rehabilitation of the
historic building will result in a net revenue gain in state and
local taxes once the building is used. The director shall consider
the results of the cost-benefit analysis in determining whether to
approve the application. The director shall also consider the
potential economic impact and the regional distributive balance of
the credits throughout the state. The director shall not consider
whether the historic building is located in or will benefit an
economically distressed area, including by weighting preference based
on the poverty rate in the jurisdiction or census tract in which the
building is located. The director may approve an application only
after completion of the cost-benefit analysis.
(2)
A rehabilitation tax credit certificate shall not be issued for an
amount greater than the estimated amount furnished by the applicant
on the application for such certificate and approved by the director.
The director shall not approve more than a total of one hundred
twenty million dollars of rehabilitation tax credits for each of
fiscal years 2023 and 2024, and sixty million dollars of
rehabilitation tax credits for each fiscal year thereafter but the
director may reallocate unused tax credits from a prior fiscal year
for new applicants and such reallocated credits shall not apply
toward the dollar limit of this division.
(3)
For rehabilitations with a rehabilitation period not exceeding
twenty-four months as provided in division (A)(8)(a) of this section,
a rehabilitation tax credit certificate shall not be issued before
the rehabilitation of the historic building is completed.
(4)
For rehabilitations with a rehabilitation period not exceeding sixty
months as provided in division (A)(8)(b) of this section, a
rehabilitation tax credit certificate shall not be issued before a
stage of rehabilitation is completed. After all stages of
rehabilitation are completed, if the director cannot determine that
the criteria in division (C) of this section are satisfied for all
stages of rehabilitations, the director shall certify this finding to
the tax commissioner, and any rehabilitation tax credits received by
the applicant shall be repaid by the applicant and may be collected
by assessment as unpaid tax by the commissioner.
(5)
The director shall require the applicant to provide a third-party
cost certification by a certified public accountant of the actual
costs attributed to the rehabilitation of the historic building when
qualified rehabilitation expenditures exceed two hundred thousand
dollars.
If
an applicant whose application is approved for receipt of a
rehabilitation tax credit certificate fails to provide to the
director sufficient evidence of reviewable progress, including a
viable financial plan, copies of final construction drawings, and
evidence that the applicant has obtained all historic approvals
within twelve months after the date the applicant received
notification of approval, and if the applicant fails to provide
evidence to the director that the applicant has secured and closed on
financing for the rehabilitation within eighteen months after
receiving notification of approval, the director may rescind the
approval of the application. The director shall notify the applicant
if the approval has been rescinded. Credits that would have been
available to an applicant whose approval was rescinded shall be
available for other qualified applicants. Nothing in this division
prohibits an applicant whose approval has been rescinded from
submitting a new application for a rehabilitation tax credit
certificate.
(6)
The director may approve the application of, and issue a
rehabilitation tax credit certificate to, the owner of a catalytic
project, provided the application otherwise meets the criteria
described in divisions (C) and (D) of this section. The director may
not approve more than one application for a rehabilitation tax credit
certificate under division (D)(6) of this section during each state
fiscal biennium. The director shall not approve an application for a
rehabilitation tax credit certificate under division (D)(6) of this
section during the state fiscal biennium beginning July 1, 2017, or
during any state fiscal biennium thereafter. The director shall
consider the following criteria in determining whether to approve an
application for a certificate under division (D)(6) of this section:
(a)
Whether the historic building is a catalytic project;
(b)
The effect issuance of the certificate would have on the availability
of credits for other applicants that qualify for a credit certificate
within the credit dollar limit described in division (D)(2) of this
section;
(c)
The number of jobs, if any, the catalytic project will create.
(7)(a)
The owner or qualified lessee of a historic building may apply for a
rehabilitation tax credit certificate under both divisions (B) and
(D)(6) of this section. In such a case, the director shall consider
each application at the time the application is submitted.
(b)
The director shall not issue more than one certificate under this
section with respect to the same qualified rehabilitation
expenditures.
(8)
The director shall give consideration for tax credits awarded under
this section to rehabilitations of historic buildings used as a
theater before, and intended to be used as a theater after, the
rehabilitation. In determining whether to approve an application for
such a rehabilitation, the director shall consider the extent to
which the rehabilitation will increase attendance at the theater and
increase the theater's gross revenue.
(9)
The director shall rescind the approval of any application if the
building that is the subject of the application is part of a
qualified low-income housing project allocated a tax credit pursuant
to section 42 of the Internal Revenue Code at any time before the
building's rehabilitation is complete.
(E)
Issuance of a certificate represents a finding by the director of the
matters described in divisions (C)(1), (2), and (3) of this section
only; issuance of a certificate does not represent a verification or
certification by the director of the amount of qualified
rehabilitation expenditures for which a tax credit may be claimed
under section 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, or
5747.76 of the Revised Code. The amount of qualified rehabilitation
expenditures for which a tax credit may be claimed is subject to
inspection and examination by the tax commissioner or employees of
the commissioner under section 5703.19 of the Revised Code and any
other applicable law. Upon the issuance of a certificate, the
director shall certify to the tax commissioner, in the form and
manner requested by the tax commissioner, the name of the applicant,
the amount of qualified rehabilitation expenditures shown on the
certificate, and any other information required by the rules adopted
under this section.
(F)(1)
On or before the first day of August each year, the director and tax
commissioner jointly shall submit to the president of the senate and
the speaker of the house of representatives a report on the tax
credit program established under this section and sections 5725.151,
5725.34, 5726.52, 5729.17, 5733.47, and 5747.76 of the Revised Code.
The report shall present an overview of the program and shall include
information on the number of rehabilitation tax credit certificates
issued under this section during the preceding fiscal year, an update
on the status of each historic building for which an application was
approved under this section, the dollar amount of the tax credits
granted under sections 5725.151, 5725.34, 5726.52, 5729.17, 5733.47,
and 5747.76 of the Revised Code, and any other information the
director and commissioner consider relevant to the topics addressed
in the report.
(2)
On or before December 1, 2015, the director and tax commissioner
jointly shall submit to the president of the senate and the speaker
of the house of representatives a comprehensive report that includes
the information required by division (F)(1) of this section and a
detailed analysis of the effectiveness of issuing tax credits for
rehabilitating historic buildings. The report shall be prepared with
the assistance of an economic research organization jointly chosen by
the director and commissioner.
(G)
There is hereby created in the state treasury the historic
rehabilitation tax credit operating fund. The director is authorized
to charge reasonable application and other fees in connection with
the administration of tax credits authorized by this section and
sections 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, and 5747.76 of
the Revised Code. Any such fees collected shall be credited to the
fund and used to pay reasonable costs incurred by the department of
housing
and
development
in administering this section and sections 5725.151, 5725.34,
5726.52, 5729.17, 5733.47, and 5747.76 of the Revised Code.
The
Ohio historic preservation office is authorized to charge reasonable
fees in connection with its review and approval of applications under
this section. Any such fees collected shall be credited to the fund
and used to pay administrative costs incurred by the Ohio historic
preservation office pursuant to this section.
(H)
Notwithstanding sections 5725.151, 5725.34, 5726.52, 5729.17,
5733.47, and 5747.76 of the Revised Code, the certificate owner of a
tax credit certificate issued under division (D)(6) of this section
may claim a tax credit equal to twenty-five per cent of the dollar
amount indicated on the certificate for a total credit of not more
than twenty-five million dollars. The credit claimed by such a
certificate owner for any calendar year, tax year, or taxable year
under section 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, or
5747.76 of the Revised Code shall not exceed five million dollars. If
the certificate owner is eligible for more than five million dollars
in total credits, the certificate owner may carry forward the balance
of the credit in excess of the amount claimed for that year for not
more than five ensuing calendar years, tax years, or taxable years.
If the credit claimed in any calendar year, tax year, or taxable year
exceeds the tax otherwise due, the excess shall be refunded to the
taxpayer.
(I)
Notwithstanding sections 5725.151, 5725.34, 5726.52, 5729.17,
5733.47, and 5747.76 of the Revised Code, the following apply to a
tax credit approved under this section after September 13, 2022, and
before July 1, 2024:
(1)
The certificate holder may claim a tax credit equal to thirty-five
per cent of the dollar amount indicated on the tax credit certificate
if any county, township, or municipal corporation within which the
project is located has a population of less than three hundred
thousand according to the 2020 decennial census. The tax credit
equals twenty-five per cent of the dollar amount indicated on the
certificate if the project is not located within such a county,
township, or municipal corporation.
(2)
The total tax credit claimed under section 5725.151, 5725.34,
5726.52, 5729.17, 5733.47, or 5747.76 of the Revised Code for any one
project shall not exceed ten million dollars for any calendar year,
tax year, or taxable year.
(3)
If the credit claimed in any calendar year, tax year, or taxable year
exceeds the tax otherwise due, the excess shall be refunded to the
taxpayer, subject to division (I)(2) of this section.
(J)
The director of
housing
and
development,
in consultation with the director of budget and management, shall
develop and adopt a system of tracking any information necessary to
anticipate the impact of credits issued under this section on tax
revenues for current and future fiscal years. Such information may
include the number of applications approved, the estimated
rehabilitation expenditures and rehabilitation period associated with
such applications, the number and amount of tax credit certificates
issued, and any other information the director of budget and
management requires for the purposes of this division.
(K)
For purposes of this section and Chapter 122:19-1 of the Ohio
Administrative Code, a tax credit certificate issued under this
section is effective on the date that all historic buildings
rehabilitated by the project are "placed in service," as
that term is used in section 47 of the Internal Revenue Code.
Sec.
150.02.
(A)
There is hereby created the Ohio venture capital authority, which
shall exercise the powers and perform the duties prescribed by this
chapter. The exercise by the authority of its powers and duties is
hereby declared to be an essential state governmental function. The
authority is subject to all laws generally applicable to state
agencies and public officials, including, but not limited to, Chapter
119. and sections 121.22 and 149.43 of the Revised Code, to the
extent those laws do not conflict with this chapter.
(B)
The authority shall consist of three members appointed by the
governor, one of whom the governor shall select from a list of three
nominees provided by the president of the senate, and one of whom the
governor shall select from a list of three nominees provided by the
speaker of the house of representatives. If the governor rejects all
the nominees provided in either list, the governor shall request that
the president of the senate or speaker of the house, as the case may
be, provide another list of three nominees, and the president or
speaker, as the case may be, shall provide another list of three
nominees. All nominated and appointed members shall have experience
in the field of banking, investments, commercial law, or industry
relevant to the purpose of the Ohio venture capital program as stated
in section 150.01 of the Revised Code. The director of
housing
and
development
and tax commissioner or their designees shall serve as advisors to
the authority but shall not be members and shall not vote on any
matter before the authority.
Initial
appointees to the authority shall serve staggered terms, with one
term expiring on January 31, 2004, two terms expiring on January 31,
2005, two terms expiring on January 31, 2006, and two terms expiring
on January 31, 2007. The terms of all members serving on the
authority on January 31, 2010, expire on that date, and the three
appointees appointed pursuant to the amendment of this section by
H.B. 1 of the 128th general assembly shall begin their terms February
1, 2010, with one term expiring January 31, 2012, one term expiring
January 31, 2013, and one term expiring January 31, 2014. Thereafter,
terms of office for all appointees shall be for four years, with each
term ending on the same day of the same month as did the term that it
succeeds. A vacancy on the authority shall be filled in the same
manner as the original appointment, except that a person appointed to
fill a vacancy shall be appointed to the remainder of the unexpired
term. Any appointed member of the authority is eligible for
reappointment.
A
member of the authority may be removed by the member's appointing
authority for misfeasance, malfeasance, willful neglect of duty, or
other cause, after notice and a public hearing, unless the notice and
hearing are waived in writing by the member.
(C)
Members of the authority shall serve without compensation, but shall
receive their reasonable and necessary expenses incurred in the
conduct of authority business. The governor shall designate a member
of the authority to serve as chairperson. A majority of the members
of the authority constitutes a quorum, and the affirmative vote of a
majority of the members present is necessary for any action taken by
the authority. A vacancy in the membership of the authority does not
impair the right of a quorum to exercise all rights and perform all
duties of the authority.
(D)
The department of
housing
and
development
shall provide the authority with office space and such technical
assistance as the authority requires.
(E)
The authority and an issuer may cooperate in promoting the public
purposes of the Ohio venture capital program as stated in section
150.01 of the Revised Code and may enter into such agreements as the
authority and the issuer deem appropriate, with a view to cooperative
action and safeguarding of the respective interests of the parties
thereto. Such agreements may provide for the rights, duties, and
responsibilities of the parties and any limitations thereon, the
terms on which any tax credits that may be issued to a trustee for
the benefit of the issuer pursuant to division (E) of section 150.07
of the Revised Code are to be issued and claimed, and such other
terms as may be mutually satisfactory to the parties including, but
not limited to, requirements for reporting, and a plan, prepared by a
program administrator and acceptable to the authority and the issuer,
designed to evidence and ensure compliance with division (D) of
section 150.03 of the Revised Code and Section 2p of Article VIII,
Ohio Constitution.
Sec.
151.40.
(A)
As used in this section:
(1)
"Bond proceedings" includes any trust agreements, and any
amendments or supplements to them, as authorized by this section.
(2)
"Costs of revitalization projects" includes related direct
administrative expenses and allocable portions of the direct costs of
those projects of the department of
housing
and
development
or the environmental protection agency.
(3)
"Issuing authority" means the treasurer of state.
(4)
"Obligations" means obligations as defined in section
151.01 of the Revised Code issued to pay the costs of projects for
revitalization purposes as referred to in division (A)(2) of Section
2o of Article VIII, Ohio Constitution and division (A)(2) of Section
2q of Article VIII, Ohio Constitution.
(5)
"Pledged liquor profits" means all receipts of the state
representing the gross profit on the sale of spirituous liquor, as
referred to in division (B)(4) of section 4301.10 of the Revised
Code, after paying all costs and expenses of the division of liquor
control and providing an adequate working capital reserve for the
division of liquor control as provided in that division, but
excluding the sum required by the second paragraph of section 4301.12
of the Revised Code, as it was in effect on May 2, 1980, to be paid
into the state treasury.
(6)
"Pledged receipts" means, as and to the extent provided in
bond proceedings:
(a)
Pledged liquor profits. The pledge of pledged liquor profits to
obligations is subject to the priority of the pledge of those profits
to obligations issued and to be issued pursuant to Chapter 166. of
the Revised Code.
(b)
Moneys accruing to the state from the lease, sale, or other
disposition or use of revitalization projects or from the repayment,
including any interest, of loans or advances made from net proceeds;
(c)
Accrued interest received from the sale of obligations;
(d)
Income from the investment of the special funds;
(e)
Any gifts, grants, donations, or pledges, and receipts therefrom,
available for the payment of debt service;
(f)
Additional or any other specific revenues or receipts lawfully
available to be pledged, and pledged, pursuant to further
authorization by the general assembly, to the payment of debt
service.
(B)(1)
The issuing authority shall issue obligations of the state to pay
costs of revitalization projects pursuant to division (B)(2) of
Section 2o of Article VIII, Ohio Constitution, division (B)(2) of
Section 2q of Article VIII, Ohio Constitution, section 151.01 of the
Revised Code as applicable to this section, and this section. Not
more than four hundred million dollars principal amount of
obligations issued under this section for revitalization purposes may
be outstanding at any one time. Not more than fifty million dollars
principal amount of obligations, plus the principal amount of
obligations that in any prior fiscal year could have been, but were
not issued within the fifty-million-dollar fiscal year limit, may be
issued in any fiscal year.
(2)
The provisions and authorizations in section 151.01 of the Revised
Code apply to the obligations and the bond proceedings except as
otherwise provided or provided for in those obligations and bond
proceedings.
(C)
Net proceeds of obligations shall be deposited in the general revenue
fund.
(D)
There is hereby created the revitalization projects bond service
fund, which shall be in the custody of the treasurer of state, but
shall be separate and apart from and not a part of the state
treasury. All money received by the state and required by the bond
proceedings, consistent with section 151.01 of the Revised Code and
this section, to be deposited, transferred, or credited to the bond
service fund, and all other money transferred or allocated to or
received for the purposes of that fund, shall be deposited and
credited to the bond service fund, subject to any applicable
provisions of the bond proceedings, but without necessity for any act
of appropriation. During the period beginning with the date of the
first issuance of obligations and continuing during the time that any
obligations are outstanding in accordance with their terms, so long
as moneys in the bond service fund are insufficient to pay debt
service when due on those obligations payable from that fund, except
the principal amounts of bond anticipation notes payable from the
proceeds of renewal notes or bonds anticipated, and due in the
particular fiscal year, a sufficient amount of pledged receipts is
committed and, without necessity for further act of appropriation,
shall be paid to the bond service fund for the purpose of paying that
debt service when due.
(E)
The issuing authority may pledge all, or such portion as the issuing
authority determines, of the pledged receipts to the payment of the
debt service charges on obligations issued under this section, and
for the establishment and maintenance of any reserves, as provided in
the bond proceedings, and make other provisions in the bond
proceedings with respect to pledged receipts as authorized by this
section, which provisions are controlling notwithstanding any other
provisions of law pertaining to them.
(F)
The issuing authority may covenant in the bond proceedings, and such
covenants shall be controlling notwithstanding any other provision of
law, that the state and applicable officers and state agencies,
including the general assembly, so long as any obligations issued
under this section are outstanding, shall maintain statutory
authority for and cause to be charged and collected wholesale or
retail prices for spirituous liquor sold by the state or its agents
so that the available pledged receipts are sufficient in time and
amount to meet debt service payable from pledged liquor profits and
for the establishment and maintenance of any reserves and other
requirements provided for in the bond proceedings.
(G)
Obligations may be further secured, as determined by the issuing
authority, by a trust agreement between the state and a corporate
trustee, which may be any trust company or bank having a place of
business within the state. Any trust agreement may contain the
resolution or order authorizing the issuance of the obligations, any
provisions that may be contained in any bond proceedings, and other
provisions that are customary or appropriate in an agreement of that
type, including, but not limited to:
(1)
Maintenance of each pledge, trust agreement, or other instrument
comprising part of the bond proceedings until the state has fully
paid or provided for the payment of debt service on the obligations
secured by it;
(2)
In the event of default in any payments required to be made by the
bond proceedings, enforcement of those payments or agreements by
mandamus, the appointment of a receiver, suit in equity, action at
law, or any combination of them;
(3)
The rights and remedies of the holders or owners of obligations and
of the trustee and provisions for protecting and enforcing them,
including limitations on rights of individual holders and owners.
(H)
The obligations shall not be general obligations of the state and the
full faith and credit, revenue, and taxing power of the state shall
not be pledged to the payment of debt service on them. The holders or
owners of the obligations shall have no right to have any moneys
obligated or pledged for the payment of debt service except as
provided in this section and in the applicable bond proceedings. The
rights of the holders and owners to payment of debt service are
limited to all or that portion of the pledged receipts, and those
special funds, pledged to the payment of debt service pursuant to the
bond proceedings in accordance with this section, and each obligation
shall bear on its face a statement to that effect.
Sec.
153.59.
Every
contract for or on behalf of the state, or any township, county, or
municipal corporation of the state, for the construction, alteration,
or repair of any public building or public work in the state shall
contain provisions by which the contractor agrees to both of the
following:
(A)
That, in the hiring of employees for the performance of work under
the contract or any subcontract, no contractor, subcontractor, or any
person acting on a contractor's or subcontractor's behalf, by reason
of race, creed, sex, disability or military status as defined in
section 4112.01 of the Revised Code, or color, shall discriminate
against any citizen of the state in the employment of labor or
workers who is qualified and available to perform the work to which
the employment relates;
(B)
That no contractor, subcontractor, or any person on a contractor's or
subcontractor's behalf, in any manner, shall discriminate against or
intimidate any employee hired for the performance of work under the
contract on account of race, creed, sex, disability or military
status as defined in section 4112.01 of the Revised Code, or color.
The
department of
housing
and
development
shall ensure that no capital moneys appropriated by the general
assembly for any purpose shall be expended unless the project for
which those moneys are appropriated provides for an affirmative
action program for the employment and effective utilization of
disadvantaged persons whose disadvantage may arise from cultural,
racial, or ethnic background, or other similar cause, including, but
not limited to, race, religion, sex, disability or military status as
defined in section 4112.01 of the Revised Code, national origin, or
ancestry.
In
awarding contracts for capital improvement projects, the department
shall ensure that equal consideration be given to contractors,
subcontractors, or joint venturers who qualify as a minority business
enterprise. As used in this section, "minority business
enterprise" means a business enterprise that is owned or
controlled by one or more socially or economically disadvantaged
persons who are residents of this state. "Socially or
economically disadvantaged persons" means persons, regardless of
marital status, who are members of groups whose disadvantage may
arise from discrimination on the basis of race, religion, sex,
disability or military status as defined in section 4112.01 of the
Revised Code, national origin, ancestry, or other similar cause.
Sec.
164.02.
(A)
There is hereby created the Ohio public works commission consisting
of seven members who shall be appointed as follows: two persons shall
be appointed by the speaker of the house of representatives; one
person shall be appointed by the minority leader of the house of
representatives; two persons shall be appointed by the president of
the senate; one person shall be appointed by the minority leader of
the senate; and one person from the private sector, who shall have
experience in matters of public finance, shall be appointed
alternately by the speaker of the house of representatives and the
president of the senate, with the speaker of the house making the
first appointment. The director of transportation, the director of
environmental protection, the director of
housing
and
development,
the director of natural resources, and the chairperson of the Ohio
water development authority shall be nonvoting, ex officio members of
the commission. Terms of office shall be for four years, each term
ending on the date that is four years from the date of appointment.
Members may be reappointed, to a subsequent
four
year
four-year
term,
one time. Vacancies shall be filled in the same manner provided for
original appointments. Any member appointed to fill a vacancy
occurring prior to the expiration date of the term for which the
member's predecessor was appointed shall hold office for the
remainder of that term, and may be reappointed for up to two
subsequent
four
year
four-year
terms.
A member shall continue in office subsequent to the expiration date
of the member's term until the member's successor takes office or
until a period of sixty days has elapsed, whichever occurs first.
The
commission shall elect a chairperson, vice-chairperson, and other
officers as it considers advisable. Four voting members constitute a
quorum. Members of the commission shall serve without compensation
but shall be reimbursed for their actual and necessary expenses
incurred in the performance of their duties.
(B)
The Ohio public works commission shall:
(1)
Review and evaluate persons who will be recommended to the governor
for appointment to the position of director of the Ohio public works
commission, and, when the commission considers it appropriate,
recommend the removal of a director;
(2)
Provide the governor with a list of names of three persons who are,
in the judgment of the commission, qualified to be appointed to the
position of director. The commission shall provide the list, which
may include the name of the incumbent director to the governor, not
later than sixty days prior to the expiration of the term of such
incumbent director. A director shall serve a two-year term upon
initial appointment, and four-year terms if subsequently reappointed
by the governor; however, the governor may remove a director at any
time following the commission's recommendation of such action. Upon
the expiration of a director's term, or in the case of the
resignation, death, or removal of a director, the commission shall
provide such list of the names of three persons to the governor
within thirty days of such expiration, resignation, death, or
removal. Nothing in this section shall prevent the governor, in the
governor's discretion, from rejecting all of the nominees of the
commission and requiring the commission to select three additional
nominees. However, when the governor has requested and received a
second list of three additional names, the governor shall make the
appointment from one of the names on the first list or the second
list. Appointment by the governor is subject to the advice and
consent of the senate.
In
the case of the resignation, removal, or death of the director during
the director's term of office, a successor shall be chosen for the
remainder of the term in the same manner as is provided for an
original appointment.
(3)
Provide oversight to the director and advise in the development of
policy guidelines for the implementation of this chapter, and report
and make recommendations to the general assembly with respect to such
implementation;
(4)
Adopt bylaws to govern the conduct of the commission's business;
(5)
Appoint the members of the Ohio small government capital improvements
commission in accordance with division (C) of this section.
(C)(1)
There is hereby created the Ohio small government capital
improvements commission. The commission shall consist of ten members,
including the director of transportation, the director of
environmental protection, and the chairperson of the Ohio water
development authority as nonvoting, ex officio members and seven
voting members appointed by the Ohio public works commission. Each
such appointee shall be a member of a district public works
integrating committee who was appointed to the integrating committee
pursuant to the majority vote of the chief executive officers of the
villages of the appointee's district or by a majority of the boards
of township trustees of the appointee's district.
(2)
Two of the initial appointments shall be for terms ending two years
after March 29, 1988. The remaining initial appointments shall be for
terms ending three years after March 29, 1988. Thereafter, terms of
office shall be for two years, with each term ending on the same date
of the same month as did the term that it succeeds. Each member shall
hold office from the date of appointment until the end of the term
for which the member is appointed. Vacancies shall be filled in the
same manner as original appointments. Any member appointed to fill a
vacancy occurring before the expiration date of the term for which
the member's predecessor was appointed shall hold office as a member
for the remainder of that term. A member shall continue in office
after the expiration of the member's term until the member's
successor takes office or until a period of sixty days has elapsed,
whichever occurs first. Members of the commission may be reappointed.
No more than two members of the commission may be members of the same
district public works integrating committee.
(3)
The Ohio small government capital improvements commission shall elect
one of its appointed members as chairperson and another as
vice-chairperson. Four voting members of the commission constitute a
quorum, and the affirmative vote of four appointed members is
required for any action taken by vote of the commission. No vacancy
in the membership of the commission shall impair the right of a
quorum by an affirmative vote of four appointed members to exercise
all rights and perform all duties of the commission. Members of the
commission shall serve without compensation, but shall be reimbursed
for their actual and necessary expenses incurred in the performance
of their duties.
(D)
The Ohio small government capital improvements commission shall:
(1)
Advise the general assembly on the development of policy guidelines
for the implementation of this chapter, especially as it relates to
the interests of small governments and the use of the portion of bond
proceeds set aside for the exclusive use of townships and villages;
(2)
Advise the township and village subcommittees of the various district
public works integrating committees concerning the selection of
projects for which the use of such proceeds will be authorized;
(3)
Affirm or overrule the recommendations of its administrator made in
accordance with section 164.051 of the Revised Code concerning
requests from townships and villages for financial assistance for
capital improvement projects.
(E)
Membership on the Ohio public works commission or the Ohio small
government capital improvements commission does not constitute the
holding of a public office. No appointed member shall be required, by
reason of section 101.26 of the Revised Code, to resign from or
forfeit membership in the general assembly.
Notwithstanding
any provision of law to the contrary, a county, municipal, or
township public official may serve as a member of the Ohio public
works commission or the Ohio small government capital improvements
commission.
Members
of the commissions established by this section do not have an
unlawful interest in a public contract under section 2921.42 of the
Revised Code solely by virtue of the receipt of financial assistance
under this chapter by the local subdivision of which they are also a
public official or appointee.
Sec.
165.01.
As
used in this chapter:
"Bonds"
means bonds, notes, or other forms of evidences of obligation issued
in temporary or definitive form, including notes issued in
anticipation of the issuance of bonds and renewal notes. The funding
of bond anticipation notes with bonds or renewal notes and the
exchange of definitive bonds for temporary bonds are not subject to
section 165.07 of the Revised Code.
"Bond
proceedings" means the resolution or ordinance or the trust
agreement or indenture of mortgage, or combination thereof,
authorizing or providing for the terms and conditions applicable to
bonds issued under authority of this chapter.
"Issuer"
means the state or a county, township, or municipal corporation of
the state.
"Issuing
authority" means in the case of the state, the director of
housing
and
development
services
;
in the case of a municipal corporation, the legislative authority
thereof; in the case of a township, the board of township trustees;
and in the case of a county, the board of county commissioners or
whatever officers, board, commission, council, or other body might
succeed to the legislative powers of the commissioners.
"Pledged
facilities" means the project or projects mortgaged or the
rentals, revenues, and other income, charges, and moneys from which
are pledged, or both, for the payment of the principal of and
interest on the bonds issued under authority of section 165.03 of the
Revised Code, and includes a project for which a loan has been made
under authority of this chapter, in which case, references in this
chapter to revenues of such pledged facilities or from the
disposition thereof includes payments made or to be made to or for
the account of the issuer pursuant to such loan.
"Project"
means real or personal property, or both, including undivided and
other interests therein, acquired by gift or purchase, constructed,
reconstructed, enlarged, improved, furnished, or equipped, or any
combination thereof, by an issuer, or by others in whole or in part
from the proceeds of a loan made by an issuer, for industry,
commerce, distribution, or research and located within the boundaries
of the issuer. "Project" includes sanitary facilities,
drainage facilities, and prevention or replacement facilities as
defined in section 6117.01 of the Revised Code. A project as defined
in this division is hereby determined to qualify as facilities
described in Section 13 of Article VIII, Ohio Constitution.
"Revenues"
means the rentals, revenues, payments, repayments, income, charges,
and moneys derived or to be derived from the use, lease, sublease,
rental, sale, including installment sale or conditional sale, or
other disposition of pledged facilities, or derived or to be derived
pursuant to a loan made for a project, bond proceeds to the extent
provided in the bond proceedings for the payment of principal of, or
premium, if any, or interest on the bonds, proceeds from any
insurance, condemnation or guaranty pertaining to pledged facilities
or the financing thereof, and income and profit from the investment
of the proceeds of bonds or of any revenues.
"Security
interest" means a mortgage, lien, or other encumbrance on, or
pledge or assignment of, or other security interest with respect to
all or any part of pledged facilities, revenues, reserve funds, or
other funds established under the bond proceedings, or on, of, or
with respect to, a lease, sublease, sale, conditional sale or
installment sale agreement, loan agreement, or any other agreement
pertaining to the lease, sublease, sale, or other disposition of a
project or pertaining to a loan made for a project, or any guaranty
or insurance agreement made with respect thereto, or any interest of
the issuer therein, or any other interest granted, assigned, or
released to secure payments of the principal of, premium, if any, or
interest on any bonds or to secure any other payments to be made by
an issuer under the bond proceedings. Any security interest under
this chapter may be prior or subordinate to or on a parity with any
other mortgage, lien, encumbrance, pledge, assignment, or other
security interest.
Sec.
165.03.
(A)
An issuer may issue bonds for the purpose of providing moneys to
acquire by purchase, construct, reconstruct, enlarge, improve,
furnish, or equip one or more projects or parts thereof, or for any
combination of such purposes, including providing moneys to make
loans to others for such purposes. The issuing authority shall
provide by resolution or ordinance for the issuance of such bonds.
The bond proceedings may contain determinations by the issuing
authority that the project to be financed thereunder is a project as
defined in this chapter and is consistent with the purposes of
Section 13 of Article VIII, Ohio Constitution, and such
determinations shall be conclusive as to the validity and
enforceability of the bonds issued under such bond proceedings and of
such bond proceedings and security interests given and leases,
subleases, sale agreements, loan agreements, and other agreements
made in connection therewith, all in accordance with their terms.
The
principal of and interest on the bonds and all other payments
required to be made by the bond proceedings shall be payable solely
from the revenues and secured by security interests as provided in
such bond proceedings. Bond anticipation notes may be secured, solely
or additionally, by a covenant of the issuer that it will do all
things necessary for the issuance of the bonds anticipated or renewal
notes in appropriate amount and either exchange such bonds or renewal
notes for such notes or apply the proceeds therefrom to the extent
necessary to make full payment of the principal of and interest on
such notes. The bond proceedings shall not obligate or pledge moneys
raised by taxation.
Bonds
may be issued at one time or from time to time, shall be dated, shall
mature at such time or times not exceeding thirty years from date of
issue, and may be redeemable before maturity at such price or prices
and under such terms and conditions, all as provided in the bond
proceedings. The bonds shall bear interest at such rate or rates, or
at a variable rate or rates changing from time to time in accordance
with a base or formula, as provided in or authorized by the bond
proceedings. The issuing authority shall determine the form of the
bonds, fix their denominations and method of execution, and establish
within or without the state a place or places for the payment of
principal or interest.
(B)
The issuing authority may provide for sales of bonds at public or
private sale as it deems most advantageous and for such prices,
whether above or below the par value thereof, as it determines or
within such limit or limits as it determines.
(C)
If the state is the issuer, then before the authorization of the
bonds, the issuing authority of the state shall have received a
written request for the issuance of the bonds from either the board
of directors of a port authority created pursuant to the authority of
section 4582.02 or 4582.22 of the Revised Code if the project is
within the jurisdiction of the port authority, from the issuing
authority of the municipal corporation if the project is within the
boundaries of a municipal corporation, or from the issuing authority
of the township or county if the project is within the unincorporated
portion of the township or county.
(D)
If the issuer is a county, township, or municipal corporation, then,
before the delivery of bonds issued under authority of this section,
the issuing authority shall have caused a written notice to have been
mailed by certified mail to the director of
housing
and
development
services
of
the state advising such director of the proposed delivery of the
bonds, the amount thereof, the proposed lessee, and a general
description of the project or projects to be financed.
(E)
In case any officer who has signed any bonds or coupons pertaining
thereto, or caused the officer's facsimile signature to be affixed
thereto, ceases to be such officer before such bonds or coupons have
been delivered, such bonds or coupons may, nevertheless, be issued
and delivered as though the person who had signed the bonds or
coupons or caused the person's facsimile signature to be affixed
thereto had not ceased to be such officer. Any bonds or coupons may
be executed on behalf of the issuer by an officer who, on the date of
execution, is the proper officer although on the date of such bonds
or coupons such person was not the proper officer.
(F)
All bonds issued under authority of this chapter, regardless of form
or terms and regardless of any other law to the contrary, shall have
all qualities and incidents of negotiable instruments, subject to
provisions for registration, and may be issued in coupon, fully
registered, or other form, or any combination thereof, as the issuing
authority determines. Provision may be made for the registration of
any coupon bonds as to principal alone or as to both principal and
interest, and for the conversion into coupon bonds of any fully
registered bonds or bonds registered as to both principal and
interest.
Sec.
165.20.
In
accordance with Section 13 of Article VIII, Ohio Constitution, the
state, acting through the director of
housing
and
development,
or through the board of trustees of any state university or any
housing commission created by section 3347.01 of the Revised Code,
and its political subdivision, taxing districts, or public
authorities, or its or their agencies, institutions, or
instrumentalities, may by resolution or ordinance designate a
corporation organized under Chapter 1702. or 1724. of the Revised
Code as its or their agency to acquire, construct, reconstruct,
enlarge, improve, furnish, or equip and to sell, lease, exchange, or
otherwise dispose of property and facilities within the state for
industry, commerce, distribution, and research; may approve such
corporation and obligations of the corporation issued by it for one
or more such purposes; and may have a beneficial interest in such
corporation including the right to the property financed by such
obligations on the retirement of such obligations, or by acquiring
such property for endowment or similar uses or benefits or for
ultimate direct use by it, subject to any lease or mortgage securing
such obligations.
Sec.
166.01.
As
used in this chapter:
(A)
"Allowable costs" means all or part of the costs of project
facilities, eligible projects, eligible innovation projects, eligible
research and development projects, eligible advanced energy projects,
or eligible logistics and distribution projects, including costs of
acquiring, constructing, reconstructing, rehabilitating, renovating,
enlarging, improving, equipping, or furnishing project facilities,
eligible projects, eligible innovation projects, eligible research
and development projects, eligible advanced energy projects, or
eligible logistics and distribution projects, site clearance and
preparation, supplementing and relocating public capital improvements
or utility facilities, designs, plans, specifications, surveys,
studies, and estimates of costs, expenses necessary or incident to
determining the feasibility or practicability of assisting an
eligible project, an eligible innovation project, an eligible
research and development project, an eligible advanced energy
project, or an eligible logistics and distribution project, or
providing project facilities or facilities related to an eligible
project, an eligible innovation project, an eligible research and
development project, an eligible advanced energy project, or an
eligible logistics and distribution project, architectural,
engineering, and legal services fees and expenses, the costs of
conducting any other activities as part of a voluntary action, and
such other expenses as may be necessary or incidental to the
establishment or development of an eligible project, an eligible
innovation project, an eligible research and development project, an
eligible advanced energy project, or an eligible logistics and
distribution project, and reimbursement of moneys advanced or applied
by any governmental agency or other person for allowable costs.
(B)
"Allowable innovation costs" includes allowable costs of
eligible innovation projects and, in addition, includes the costs of
research and development of eligible innovation projects; obtaining
or creating any requisite software or computer hardware related to an
eligible innovation project or the products or services associated
therewith; testing (including, without limitation, quality control
activities necessary for initial production), perfecting, and
marketing of such products and services; creating and protecting
intellectual property related to an eligible innovation project or
any products or services related thereto, including costs of securing
appropriate patent, trademark, trade secret, trade dress, copyright,
or other form of intellectual property protection for an eligible
innovation project or related products and services; all to the
extent that such expenditures could be capitalized under
then-applicable generally accepted accounting principles; and the
reimbursement of moneys advanced or applied by any governmental
agency or other person for allowable innovation costs.
(C)
"Eligible innovation project" includes an eligible project,
including any project facilities associated with an eligible
innovation project and, in addition, includes all tangible and
intangible property related to a new product or process based on new
technology or the creative application of existing technology,
including research and development, product or process testing,
quality control, market research, and related activities, that is to
be acquired, established, expanded, remodeled, rehabilitated, or
modernized for industry, commerce, distribution, or research, or any
combination thereof, the operation of which, alone or in conjunction
with other eligible projects, eligible innovation projects, or
innovation property, will create new jobs or preserve existing jobs
and employment opportunities and improve the economic welfare of the
people of the state.
(D)
"Eligible project" means project facilities to be acquired,
established, expanded, remodeled, rehabilitated, or modernized for
industry, commerce, distribution, or research, or any combination
thereof, the operation of which, alone or in conjunction with other
facilities, will create new jobs or preserve existing jobs and
employment opportunities and improve the economic welfare of the
people of the state. "Eligible project" includes, without
limitation, a voluntary action. For purposes of this division, "new
jobs" does not include existing jobs transferred from another
facility within the state, and "existing jobs" includes
only those existing jobs with work places within the municipal
corporation or unincorporated area of the county in which the
eligible project is located.
"Eligible
project" does not include project facilities to be acquired,
established, expanded, remodeled, rehabilitated, or modernized for
industry, commerce, distribution, or research, or any combination of
industry, commerce, distribution, or research, if the project
facilities consist solely of point-of-final-purchase retail
facilities. If the project facilities consist of both
point-of-final-purchase retail facilities and nonretail facilities,
only the portion of the project facilities consisting of nonretail
facilities is an eligible project. If a warehouse facility is part of
a point-of-final-purchase retail facility and supplies only that
facility, the warehouse facility is not an eligible project. Catalog
distribution facilities are not considered point-of-final-purchase
retail facilities for purposes of this paragraph, and are eligible
projects.
(E)
"Eligible research and development project" means an
eligible project, including project facilities, comprising, within,
or related to, a facility or portion of a facility at which research
is undertaken for the purpose of discovering information that is
technological in nature and the application of which is intended to
be useful in the development of a new or improved product, process,
technique, formula, or invention, a new product or process based on
new technology, or the creative application of existing technology.
(F)
"Financial assistance" means inducements under division (B)
of section 166.02 of the Revised Code, loan guarantees under section
166.06 of the Revised Code, and direct loans under section 166.07 of
the Revised Code.
(G)
"Governmental action" means any action by a governmental
agency relating to the establishment, development, or operation of an
eligible project, eligible innovation project, eligible research and
development project, eligible advanced energy project, or eligible
logistics and distribution project, and project facilities that the
governmental agency acting has authority to take or provide for the
purpose under law, including, but not limited to, actions relating to
contracts and agreements, zoning, building, permits, acquisition and
disposition of property, public capital improvements, utility and
transportation service, taxation, employee recruitment and training,
and liaison and coordination with and among governmental agencies.
(H)
"Governmental agency" means the state and any state
department, division, commission, institution or authority; a
municipal corporation, county, or township, and any agency thereof,
and any other political subdivision or public corporation or the
United States or any agency thereof; any agency, commission, or
authority established pursuant to an interstate compact or agreement;
and any combination of the above.
(I)
"Innovation financial assistance" means inducements under
division (B) of section 166.12 of the Revised Code, innovation Ohio
loan guarantees under section 166.15 of the Revised Code, and
innovation Ohio loans under section 166.16 of the Revised Code.
(J)
"Innovation Ohio loan guarantee reserve requirement" means,
at any time, with respect to innovation loan guarantees made under
section 166.15 of the Revised Code, a balance in the innovation Ohio
loan guarantee fund equal to the greater of twenty per cent of the
then-outstanding principal amount of all outstanding innovation loan
guarantees made pursuant to section 166.15 of the Revised Code or
fifty per cent of the principal amount of the largest outstanding
guarantee made pursuant to section 166.15 of the Revised Code.
(K)
"Innovation property" includes property and also includes
software, inventory, licenses, contract rights, goodwill,
intellectual property, including without limitation, patents, patent
applications, trademarks and service marks, and trade secrets, and
other tangible and intangible property, and any rights and interests
in or connected to the foregoing.
(L)
"Loan guarantee reserve requirement" means, at any time,
with respect to loan guarantees made under section 166.06 of the
Revised Code, a balance in the loan guarantee fund equal to the
greater of twenty per cent of the then-outstanding principal amount
of all outstanding guarantees made pursuant to section 166.06 of the
Revised Code or fifty per cent of the principal amount of the largest
outstanding guarantee made pursuant to section 166.06 of the Revised
Code.
(M)
"Person" means any individual, firm, partnership,
association, corporation, or governmental agency, and any combination
thereof.
(N)
"Project facilities" means buildings, structures, and other
improvements, and equipment and other property, excluding small
tools, supplies, and inventory, and any one, part of, or combination
of the above, comprising all or part of, or serving or being
incidental to, an eligible project, an eligible innovation project,
an eligible research and development project, an eligible advanced
energy project, or an eligible logistics and distribution project,
including, but not limited to, public capital improvements.
(O)
"Property" means real and personal property and interests
therein.
(P)
"Public capital improvements" means capital improvements or
facilities that any governmental agency has authority to acquire, pay
the costs of, own, maintain, or operate, or to contract with other
persons to have the same done, including, but not limited to,
highways, roads, streets, water and sewer facilities, railroad and
other transportation facilities, and air and water pollution control
and solid waste disposal facilities. For purposes of this division,
"air pollution control facilities" includes, without
limitation, solar, geothermal, biofuel, biomass, wind, hydro, wave,
and other advanced energy projects as defined in section 3706.25 of
the Revised Code.
(Q)
"Research and development financial assistance" means
inducements under section 166.17 of the Revised Code, research and
development loans under section 166.21 of the Revised Code, and
research and development tax credits under sections 5733.352 and
5747.331 of the Revised Code.
(R)
"Targeted innovation industry sectors" means industry
sectors involving the production or use of advanced materials,
instruments, controls and electronics, power and propulsion,
biosciences, and information technology, or such other sectors as may
be designated by the director of
housing
and
development.
(S)
"Voluntary action" means a voluntary action, as defined in
section 3746.01 of the Revised Code, that is conducted under the
voluntary action program established in Chapter 3746. of the Revised
Code.
(T)
"Project financing obligations" means obligations issued
pursuant to section 166.08 of the Revised Code other than obligations
for which the bond proceedings provide that bond service charges
shall be paid from receipts of the state representing gross profit on
the sale of spirituous liquor as referred to in division (B)(4) of
section
4310.10
4301.10
of
the Revised Code.
(U)
"Regional economic development entity" means an entity that
is under contract with the director to administer a loan program
under this chapter in a particular area of this state.
(V)
"Eligible advanced energy project" means an eligible
project that is an "advanced energy project" as defined in
section 3706.25 of the Revised Code.
(W)
"Eligible logistics and distribution project" means an
eligible project, including project facilities, to be acquired,
established, expanded, remodeled, rehabilitated, or modernized for
transportation logistics and distribution infrastructure purposes. As
used in this division, "transportation logistics and
distribution infrastructure purposes" means promoting, providing
for, and enabling improvements to the ground, air, and water
transportation infrastructure comprising the transportation system in
this state, including, without limitation, highways, streets, roads,
bridges, railroads carrying freight, and air and water ports and port
facilities, and all related supporting facilities.
Sec.
166.02.
(A)
The general assembly finds that many local areas throughout the state
are experiencing economic stagnation or decline, and that the
economic development programs provided for in this chapter will
constitute deserved, necessary reinvestment by the state in those
areas, materially contribute to their economic revitalization, and
result in improving the economic welfare of all the people of the
state. Accordingly, it is declared to be the public policy of the
state, through the operations of this chapter and other applicable
laws adopted pursuant to Section 2p or 13 of Article VIII, Ohio
Constitution, and other authority vested in the general assembly, to
assist in and facilitate the establishment or development of eligible
projects or assist and cooperate with any governmental agency in
achieving such purpose.
(B)
In furtherance of such public policy and to implement such purpose,
the director of
housing
and
development
may:
(1)
After consultation with appropriate governmental agencies, enter into
agreements with persons engaged in industry, commerce, distribution,
or research and with governmental agencies to induce such persons to
acquire, construct, reconstruct, rehabilitate, renovate, enlarge,
improve, equip, or furnish, or otherwise develop, eligible projects
and make provision therein for project facilities and governmental
actions, as authorized by this chapter and other applicable laws,
subject to any required actions by the general assembly or the
controlling board and subject to applicable local government laws and
regulations;
(2)
Provide for the guarantees and loans as provided for in sections
166.06 and 166.07 of the Revised Code;
(3)
Subject to release of such moneys by the controlling board, contract
for labor and materials needed for, or contract with others,
including governmental agencies, to provide, project facilities the
allowable costs of which are to be paid for or reimbursed from moneys
in the facilities establishment fund, and contract for the operation
of such project facilities;
(4)
Subject to release thereof by the controlling board, from moneys in
the facilities establishment fund acquire or contract to acquire by
gift, exchange, or purchase, including the obtaining and exercise of
purchase options, property, and convey or otherwise dispose of, or
provide for the conveyance or disposition of, property so acquired or
contracted to be acquired by sale, exchange, lease, lease purchase,
conditional or installment sale, transfer, or other disposition,
including the grant of an option to purchase, to any governmental
agency or to any other person without necessity for competitive
bidding and upon such terms and conditions and manner of
consideration pursuant to and as the director determines to be
appropriate to satisfy the objectives of sections 166.01 to 166.11 of
the Revised Code;
(5)
Retain the services of or employ financial consultants, appraisers,
consulting engineers, superintendents, managers, construction and
accounting experts, attorneys, and employees, agents, and independent
contractors as are necessary in the director's judgment and fix the
compensation for their services;
(6)
Receive and accept from any person grants, gifts, and contributions
of money, property, labor, and other things of value, to be held,
used and applied only for the purpose for which such grants, gifts,
and contributions are made;
(7)
Enter into appropriate arrangements and agreements with any
governmental agency for the taking or provision by that governmental
agency of any governmental action;
(8)
Do all other acts and enter into contracts and execute all
instruments necessary or appropriate to carry out the provisions of
this chapter;
(9)
Adopt rules to implement any of the provisions of this chapter
applicable to the director.
(C)
The determinations by the director that facilities constitute
eligible projects, that facilities are project facilities, that costs
of such facilities are allowable costs, and all other determinations
relevant thereto or to an action taken or agreement entered into
shall be conclusive for purposes of the validity and enforceability
of rights of parties arising from actions taken and agreements
entered into under this chapter.
(D)
Except as otherwise prescribed in this chapter, all expenses and
obligations incurred by the director in carrying out the director's
powers and in exercising the director's duties under this chapter,
shall be payable solely from, as appropriate, moneys in the
facilities establishment fund, the loan guarantee fund, the
innovation Ohio loan guarantee fund, the innovation Ohio loan fund,
the research and development loan fund, the logistics and
distribution infrastructure fund, or moneys appropriated for such
purpose by the general assembly. This chapter does not authorize the
director or the issuing authority under section 166.08 of the Revised
Code to incur bonded indebtedness of the state or any political
subdivision thereof, or to obligate or pledge moneys raised by
taxation for the payment of any bonds or notes issued or guarantees
made pursuant to this chapter.
(E)
Any governmental agency may enter into an agreement with the
director, any other governmental agency, or a person to be assisted
under this chapter, to take or provide for the purposes of this
chapter any governmental action it is authorized to take or provide,
and to undertake on behalf and at the request of the director any
action which the director is authorized to undertake pursuant to
divisions (B)(3), (4), and (5) of this section or divisions (B)(3),
(4), and (5) of section 166.12 of the Revised Code. Governmental
agencies of the state shall cooperate with and provide assistance to
the director of
housing
and
development
and the controlling board in the exercise of their respective
functions under this chapter.
Sec.
166.03.
(A)
There is hereby created the facilities establishment fund within the
state treasury, consisting of proceeds from the issuance of
obligations as specified under section 166.08 of the Revised Code;
the moneys received by the state from the sources specified in
section 166.09 of the Revised Code; service charges imposed under
sections 166.06 and 166.07 of the Revised Code; any grants, gifts, or
contributions of moneys received by the director of
housing
and
development
to be used for loans made under section 166.07 of the Revised Code or
for the payment of the allowable costs of project facilities; and all
other moneys appropriated or transferred to the fund. Moneys in the
loan guarantee fund in excess of the loan guarantee reserve
requirement, but subject to the provisions and requirements of any
guarantee contracts, may be transferred to the facilities
establishment fund by the treasurer of state upon the order of the
director of
housing
and
development.
Moneys received by the state under Chapter 122. of the Revised Code,
to the extent allocable to the utilization of moneys derived from
proceeds of the sale of obligations pursuant to section 166.08 of the
Revised Code, shall be credited to the facilities establishment fund.
All investment earnings on the cash balance in the fund shall be
credited to the fund.
(B)
All moneys appropriated or transferred to the facilities
establishment fund may be released at the request of the director of
housing
and
development
for payment of allowable costs or the making of loans under section
166.07 of the Revised Code, for transfer to the loan guarantee fund
established in section 166.06 of the Revised Code, or for use for the
purpose of or transfer to the funds established by sections 122.35,
122.42, 122.54, 122.55, 122.56, 122.561, 122.57, 122.601, and 122.80
of the Revised Code and, until July 1, 2003, the fund established by
section 166.031 of the Revised Code, and, until July 1, 2007, the
fund established by section 122.26 of the Revised Code, but only for
such of those purposes as are within the authorization of Section 13
of Article VIII, Ohio Constitution, in all cases subject to the
approval of the controlling board.
(C)
The department of
housing
and
development,
in the administration of the facilities establishment fund, is
encouraged to utilize and promote the utilization of, to the maximum
practicable extent, the other existing programs, business incentives,
and tax incentives that department is required or authorized to
administer or supervise.
Sec.
166.04.
(A)
Prior to entering into each agreement to provide assistance under
sections 166.02, 166.06, and 166.07 of the Revised Code, the director
of
housing
and
development
services
shall
determine whether the assistance will conform to the requirements of
sections 166.01 to 166.11 of the Revised Code. Such determination,
and the facts upon which it is based, shall be set forth, where
required, by the director in submissions made to the controlling
board when the director seeks a release of moneys under section
166.02 of the Revised Code. An agreement to provide assistance under
sections 166.02, 166.06, and 166.07 of the Revised Code shall set
forth such determination, which shall be conclusive for purposes of
the validity and enforceability of such agreement and any loan
guarantees, loans, or other agreements entered into pursuant to such
agreement to provide assistance.
(B)
Whenever a person applies for financial assistance under sections
166.02, 166.06, and 166.07 of the Revised Code and the project for
which assistance is requested is to relocate facilities that are
currently being operated by the person and that are located in
another county, municipal corporation, or township, the person shall
provide written notification of the relocation to the appropriate
local governmental bodies. Prior to entering into an agreement to
provide the assistance, the director shall verify that such
notification has been provided.
(C)
As used in division (B) of this section, "appropriate local
governmental bodies" means:
(1)
The board of county commissioners or legislative authority of the
county in which the facility to be replaced is located;
(2)
The legislative authority of the municipal corporation or the board
of township trustees of the township in which the facility to be
replaced is located.
Sec.
166.05.
(A)
In determining the projects to be assisted and the nature, amount,
and terms of assistance to be provided for an eligible project under
sections 166.02, 166.06, and 166.07 of the Revised Code:
(1)
The director of
housing
and
development
services
shall
take into consideration all of the following:
(a)
The number of jobs to be created or preserved, directly or
indirectly;
(b)
Payrolls, and the taxes generated, at both state and local levels, by
the eligible project and by the employment created or preserved by
the eligible project;
(c)
The size, nature, and cost of the eligible project, including the
prospect of the project for providing long-term jobs in enterprises
consistent with the changing economics of the state and the nation;
(d)
The needs, and degree of needs, of the area in which the eligible
project is to be located;
(e)
The needs of any private sector enterprise to be assisted;
(f)
The competitive effect of the assistance on other enterprises
providing jobs for people of the state;
(g)
The amount and kind of assistance, if any, to be provided to the
private sector enterprise by other governmental agencies through tax
exemption or abatement, financing assistance with industrial
development bonds, and otherwise, with respect to the eligible
project;
(h)
The impact of the eligible project and its operations on local
government services, including school services, and on public
facilities;
(i)
The effect of the assistance on the loss of or damage to or
destruction of prime farmland, or the removal from agricultural
production of prime farmland. As used in this section, "prime
farmland" means agricultural land that meets the criteria for
this classification as defined by the United States soil conservation
service.
(j)
The length of time the operator of the project has been operating
facilities within the state.
(2)
The benefits to the local area, including taxes, jobs, and reduced
unemployment and reduced welfare costs, among others, may be accorded
value in the leasing or sales of project facilities and in loan and
guarantee arrangements.
(B)
Prior to granting final approval of the assistance to be provided,
the director shall determine that the benefits to be derived by the
state and local area from the establishment or development, and
operation, of the eligible project will exceed the cost of providing
such assistance and shall submit to the controlling board a copy of
that determination including the basis for the determination.
(C)
Financial statements and other data submitted to the director of
housing
and
development
services
or
the controlling board by any private sector person in connection with
financial assistance under sections 166.02, 166.06, and 166.07 of the
Revised Code, or any information taken from such statements or data
for any purpose, shall not be open to public inspection.
Sec.
166.06.
(A)
Subject to any limitations as to aggregate amounts thereof that may
from time to time be prescribed by the general assembly and to other
applicable provisions of this chapter, the director of
housing
and
development
may, on behalf of the state, enter into contracts to guarantee the
repayment or payment of not more than ninety per cent of the unpaid
principal amount of loans made, including bonds, notes, or other
certificates issued or given to provide funds, to pay allowable costs
of eligible projects. Such guarantees shall be secured solely by and
payable solely from the loan guarantee fund created by this section
and unencumbered and available moneys in the facilities establishment
fund in the manner and to the extent provided in such guarantee
contracts consistent with this section. Such guarantees shall not
constitute general obligations of the state or of any political
subdivision, and moneys raised by taxation shall not be obligated or
pledged for the payment of such guarantees.
(B)
Before guaranteeing any such repayments or payments the director
shall determine that:
(1)
The project is an eligible project and is economically sound;
(2)
The principal amount to be guaranteed does not exceed ninety per cent
of the allowable costs of the eligible project as determined by the
director. To assist the director in making this determination, the
director may, in the director's discretion, engage an independent
engineer, architect, appraiser, or other professional pursuant to a
contract to be paid solely from the facilities establishment fund,
subject to controlling board approval.
(3)
The principal amount to be guaranteed has a satisfactory maturity
date or dates, which in no case shall be later than twenty years from
the effective date of the guarantee;
(4)
The rate of interest on the loan to be guaranteed and on any other
loan made by the same parties or related persons for the eligible
project is not excessive;
(5)
The principal obligor, or primary guarantor, is responsible and is
reasonably expected to be able to meet the payments under the loan,
bonds, notes, or other certificates;
(6)
The loan or documents pertaining to the bonds, notes, or other
certificates to be guaranteed contains provisions for payment by the
principal obligor, and is in such form and contains such terms and
provisions for the protection of the lenders as are generally
consistent with commercial practice, including, where applicable,
provisions with respect to property insurance, repairs, alterations,
payment of taxes and assessments, delinquency charges, default
remedies, acceleration of maturity, prior, additional and secondary
liens, and other matters as the director may approve.
(C)
The contract of guarantee may make provision for the conditions of,
time for and manner of fulfillment of the guarantee commitment,
subrogation of the state to the rights of the parties guaranteed and
exercise of such parties' rights by the state, giving the state the
options of making payment of the principal amount guaranteed in one
or more installments and, if deferred, to pay interest thereon from
the loan guarantee fund and the facilities establishment fund, any
other terms or conditions customary to such guarantees and as the
director may approve, and may contain provisions for securing the
guarantee in the manner consistent with this section, including, at
the discretion of the director, a lien provided for under section
9.661 of the Revised Code, and may contain covenants on behalf of the
state for the maintenance of the loan guarantee fund created by this
section and of receipts to it permitted by this chapter, including
covenants on behalf of the state to issue obligations under section
166.08 of the Revised Code to provide moneys to the loan guarantee
fund to fulfill such guarantees and covenants authorized by division
(R)(1) of section 166.08 of the Revised Code, and covenants
restricting the aggregate amount of guarantees that may be contracted
under this section and obligations that may be issued under section
166.08 of the Revised Code, and terms pertinent to either, to better
secure the parties guaranteed.
(D)
The "loan guarantee fund" of the economic development
program is hereby created as a special revenue fund and a trust fund
which shall be in the custody of the treasurer of state but shall be
separate and apart from and not a part of the state treasury to
consist of all grants, gifts, and contributions of moneys or rights
to moneys lawfully designated for or deposited in such fund, all
moneys and rights to moneys lawfully appropriated and transferred to
such fund, including moneys received from the issuance of obligations
under section 166.08 of the Revised Code, and moneys deposited to
such fund pursuant to division (F) of this section; provided that the
loan guarantee fund shall not be comprised, in any part, of moneys
raised by taxation.
(E)
The director may fix service charges for making a guarantee. Such
charges shall be payable at such times and place and in such amounts
and manner as may be prescribed by the director.
(F)
The treasurer of state shall serve as agent for the director in the
making of deposits and withdrawals and maintenance of records
pertaining to the loan guarantee fund. Prior to the director's entry
into a contract providing for the making of a guarantee payable from
the loan guarantee fund, the treasurer of state shall cause to be
transferred from the facilities establishment fund to the loan
guarantee fund an amount sufficient to make the aggregate balance
therein, taking into account the proposed loan guarantee, equal to
the loan guarantee reserve requirement. Thereafter, the treasurer of
state shall cause the balance in the loan guarantee fund to be at
least equal to the loan guarantee reserve requirement. Funds from the
loan guarantee fund shall be disbursed under a guarantee made
pursuant to this section to satisfy a guaranteed repayment or payment
which is in default. The treasurer of state shall first withdraw and
transfer moneys then on deposit in the loan guarantee fund. Whenever
these moneys are inadequate to meet the requirements of a guarantee,
the treasurer of state shall, without need of appropriation or
further action by the director, provide for a withdrawal and transfer
to the loan guarantee fund and then to the guaranteed party of moneys
in such amount as is necessary to meet the guarantee from
unencumbered and available moneys in the facilities establishment
fund. Such disbursements shall be made in the manner and at the times
provided in such guarantees. Within ninety days following a
disbursement of moneys from the loan guarantee fund, the treasurer of
state, without need of appropriation or further action by the
director, shall provide for a withdrawal and transfer to the loan
guarantee fund from unencumbered and available moneys in the
facilities establishment fund, including moneys from the repayment of
loans made from that fund, of an amount sufficient to cause the
balance in the loan guarantee fund to be at least equal to the loan
guarantee reserve requirement.
(G)
Any guaranteed parties under this section, except to the extent that
their rights are restricted by the guarantee documents, may by any
suitable form of legal proceedings, protect and enforce any rights
under the laws of this state or granted by such guarantee or
guarantee documents. Such rights include the right to compel the
performance of all duties of the director and the treasurer of state
required by this section or the guarantee or guarantee documents; and
in the event of default with respect to the payment of any
guarantees, to apply to a court having jurisdiction of the cause to
appoint a receiver to receive and administer the moneys pledged to
such guarantee with full power to pay, and to provide for payment of,
such guarantee, and with such powers, subject to the direction of the
court, as are accorded receivers in general equity cases, excluding
any power to pledge or apply additional revenues or receipts or other
income or moneys of the state or governmental agencies of the state
to the payment of such guarantee. Each duty of the director and the
treasurer of state and their officers and employees, and of each
governmental agency and its officers, members, or employees, required
or undertaken pursuant to this section or a guarantee made under
authority of this section, is hereby established as a duty of the
director and the treasurer of state, and of each such officer,
member, or employee having authority to perform such duty,
specifically enjoined by the law resulting from an office, trust, or
station within the meaning of section 2731.01 of the Revised Code.
The persons who are at the time the director and treasurer of state,
or their officers or employees, are not liable in their personal
capacities on any guarantees or contracts to make guarantees by the
director.
(H)
The determinations of the director under divisions (B) and (C) of
this section shall be conclusive for purposes of the validity of a
guarantee evidenced by a contract signed by the director, and such
guarantee shall be incontestable as to moneys advanced under loans to
which such guarantees are by their terms applicable.
Sec.
166.07.
(A)
The director of
housing
and
development,
with the approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend moneys in the
facilities establishment fund to persons for the purpose of paying
allowable costs of an eligible project if the director determines
that:
(1)
The project is an eligible project and is economically sound;
(2)
The borrower is unable to finance the necessary allowable costs
through ordinary financial channels upon comparable terms;
(3)
The amount to be lent from the facilities establishment fund will not
exceed seventy-five per cent of the total allowable costs of the
eligible project, except that if any part of the amount to be lent
from the facilities establishment fund is derived from the issuance
and sale of project financing obligations the amount to be lent will
not exceed ninety per cent of the total allowable costs of the
eligible project;
(4)
The eligible project could not be achieved in the local area in which
it is to be located if the portion of the project to be financed by
the loan instead were to be financed by a loan guaranteed under
section 166.06 of the Revised Code;
(5)
The repayment of the loan from the facilities establishment fund will
be adequately secured by a mortgage, assignment, pledge, or lien
provided for under section 9.661 of the Revised Code, at such level
of priority as the director may require;
(6)
The borrower will hold at least a ten per cent equity interest in the
eligible project at the time the loan is made.
(B)
The determinations of the director under division (A) of this section
shall be conclusive for purposes of the validity of a loan commitment
evidenced by a loan agreement signed by the director.
(C)
there
There
is hereby established the micro-lending program for the purpose of
paying the allowable costs of eligible projects of eligible small
businesses. From any amount that the general assembly designates for
the purpose of the micro-lending program, the director of
housing
and
development
shall, either directly or indirectly, make loans under this section
to eligible small businesses. The director shall establish
eligibility criteria and loan terms for the program that supplement
eligibility criteria and loan terms otherwise prescribed for loans
under this section, and may prescribe reduced service charges and
fees. For the purpose of lending under the micro-lending program, the
director of
housing
and
development
shall give precedence to projects of eligible small businesses that
foster the development of small entrepreneurial enterprises,
notwithstanding the considerations prescribed by divisions (A)(1)(a)
and (b) of section 166.05 of the Revised Code to the extent those
considerations otherwise may have the effect of disqualifying
projects of eligible small businesses. The director may enter into
agreements with for-profit or
non-profit
nonprofit
organizations in this state to originate and administer loans made.
Fees,
charges, rates of interest, times of payment of interest and
principal, and other terms, conditions, and provisions of and
security for loans made from the facilities establishment fund
pursuant to this section shall be such as the director determines to
be appropriate and in furtherance of the purpose for which the loans
are made. The moneys used in making such loans shall be disbursed
from the facilities establishment fund upon order of the director.
The director shall give special consideration in setting the required
job creation ratios and interest rates for loans that are for
voluntary actions.
(D)
The director may take actions necessary or appropriate to collect or
otherwise deal with any loan made under this section, including any
action authorized by section 9.661 of the Revised Code.
(E)
The director may fix service charges for the making of a loan. Such
charges shall be payable at such times and place and in such amounts
and manner as may be prescribed by the director.
Sec.
166.08.
(A)
As used in this chapter:
(1)
"Bond proceedings" means the resolution, order, trust
agreement, indenture, lease, and other agreements, amendments and
supplements to the foregoing, or any one or more or combination
thereof, authorizing or providing for the terms and conditions
applicable to, or providing for the security or liquidity of,
obligations issued pursuant to this section, and the provisions
contained in such obligations.
(2)
"Bond service charges" means principal, including mandatory
sinking fund requirements for retirement of obligations, and
interest, and redemption premium, if any, required to be paid by the
state on obligations.
(3)
"Bond service fund" means the applicable fund and accounts
therein created for and pledged to the payment of bond service
charges, which may be, or may be part of, the economic development
bond service fund created by division (S) of this section including
all moneys and investments, and earnings from investments, credited
and to be credited thereto.
(4)
"Issuing authority" means the treasurer of state, or the
officer who by law performs the functions of such officer.
(5)
"Obligations" means bonds, notes, or other evidence of
obligation including interest coupons pertaining thereto, issued
pursuant to this section.
(6)
"Pledged receipts" means all receipts of the state
representing the gross profit on the sale of spirituous liquor, as
referred to in division (B)(4) of section 4301.10 of the Revised
Code, after paying all costs and expenses of the division of liquor
control and providing an adequate working capital reserve for the
division of liquor control as provided in that division, but
excluding the sum required by the second paragraph of section 4301.12
of the Revised Code, as in effect on May 2, 1980, to be paid into the
state treasury; moneys accruing to the state from the lease, sale, or
other disposition, or use, of project facilities, and from the
repayment, including interest, of loans made from proceeds received
from the sale of obligations; accrued interest received from the sale
of obligations; income from the investment of the special funds; and
any gifts, grants, donations, and pledges, and receipts therefrom,
available for the payment of bond service charges.
(7)
"Special funds" or "funds" means, except where
the context does not permit, the bond service fund, and any other
funds, including reserve funds, created under the bond proceedings,
and the economic development bond service fund created by division
(S) of this section to the extent provided in the bond proceedings,
including all moneys and investments, and earnings from investment,
credited and to be credited thereto.
(B)
Subject to the limitations provided in section 166.11 of the Revised
Code, the issuing authority, upon the certification by the director
of
housing
and
development
or, prior to
the effective date of this amendment
September 29, 2017
,
upon certification by the Ohio air quality development authority
regarding eligible advanced energy projects, to the issuing authority
of the amount of moneys or additional moneys needed in the facilities
establishment fund, the loan guarantee fund, the innovation Ohio loan
fund, the innovation Ohio loan guarantee fund, the research and
development loan fund, the logistics and distribution infrastructure
fund, the advanced energy research and development fund, or the
advanced energy research and development taxable fund, as applicable,
for the purpose of paying, or making loans for, allowable costs from
the facilities establishment fund, allowable innovation costs from
the innovation Ohio loan fund, allowable costs from the research and
development loan fund, allowable costs from the logistics and
distribution infrastructure fund, allowable costs from the advanced
energy research and development fund, or allowable costs from the
advanced energy research and development taxable fund, as applicable,
or needed for capitalized interest, for funding reserves, and for
paying costs and expenses incurred in connection with the issuance,
carrying, securing, paying, redeeming, or retirement of the
obligations or any obligations refunded thereby, including payment of
costs and expenses relating to letters of credit, lines of credit,
insurance, put agreements, standby purchase agreements, indexing,
marketing, remarketing and administrative arrangements, interest swap
or hedging agreements, and any other credit enhancement, liquidity,
remarketing, renewal, or refunding arrangements, all of which are
authorized by this section, or providing moneys for the loan
guarantee fund or the innovation Ohio loan guarantee fund, as
provided in this chapter or needed for the purposes of funds
established in accordance with or pursuant to sections 122.35,
122.42, 122.54, 122.55, 122.56, 122.561, 122.57, and 122.80 of the
Revised Code which are within the authorization of Section 13 of
Article VIII, Ohio Constitution, or, prior to
the effective date of this amendment
September 29, 2017
,
with respect to certain eligible advanced energy projects, Section 2p
of Article VIII, Ohio Constitution, shall issue obligations of the
state under this section in the required amount; provided that such
obligations may be issued to satisfy the covenants in contracts of
guarantee made under section 166.06 or 166.15 of the Revised Code,
notwithstanding limitations otherwise applicable to the issuance of
obligations under this section. The proceeds of such obligations,
except for the portion to be deposited in special funds, including
reserve funds, as may be provided in the bond proceedings, shall as
provided in the bond proceedings be deposited by the director of
housing
and
development
to the facilities establishment fund, the loan guarantee fund, the
innovation Ohio loan guarantee fund, the innovation Ohio loan fund,
the research and development loan fund, or the logistics and
distribution infrastructure fund, or be deposited by the Ohio air
quality development authority prior to
the
effective date of this amendment
September
29, 2017,
to
the advanced energy research and development fund or the advanced
energy research and development taxable fund. Bond proceedings for
project financing obligations may provide that the proceeds derived
from the issuance of such obligations shall be deposited into such
fund or funds provided for in the bond proceedings and, to the extent
provided for in the bond proceedings, such proceeds shall be deemed
to have been deposited into the facilities establishment fund and
transferred to such fund or funds. The issuing authority may appoint
trustees, paying agents, and transfer agents and may retain the
services of financial advisors, accounting experts, and attorneys,
and retain or contract for the services of marketing, remarketing,
indexing, and administrative agents, other consultants, and
independent contractors, including printing services, as are
necessary in the issuing authority's judgment to carry out this
section. The costs of such services are allowable costs payable from
the facilities establishment fund or the research and development
loan fund, allowable innovation costs payable from the innovation
Ohio loan fund, allowable costs payable from the logistics and
distribution infrastructure fund, or allowable costs payable prior to
the
effective date of this amendment
September
29, 2017,
from
the advanced energy research and development fund or the advanced
energy research and development taxable fund, as applicable.
(C)
The holders or owners of such obligations shall have no right to have
moneys raised by taxation obligated or pledged, and moneys raised by
taxation shall not be obligated or pledged, for the payment of bond
service charges. Such holders or owners shall have no rights to
payment of bond service charges from any moneys accruing to the state
from the lease, sale, or other disposition, or use, of project
facilities, or from payment of the principal of or interest on loans
made, or fees charged for guarantees made, or from any money or
property received by the director, treasurer of state, or the state
under Chapter 122. of the Revised Code, or from any other use of the
proceeds of the sale of the obligations, and no such moneys may be
used for the payment of bond service charges, except for accrued
interest, capitalized interest, and reserves funded from proceeds
received upon the sale of the obligations and except as otherwise
expressly provided in the applicable bond proceedings pursuant to
written directions by the director. The right of such holders and
owners to payment of bond service charges is limited to all or that
portion of the pledged receipts and those special funds pledged
thereto pursuant to the bond proceedings in accordance with this
section, and each such obligation shall bear on its face a statement
to that effect.
(D)
Obligations shall be authorized by resolution or order of the issuing
authority and the bond proceedings shall provide for the purpose
thereof and the principal amount or amounts, and shall provide for or
authorize the manner or agency for determining the principal maturity
or maturities, not exceeding twenty-five years from the date of
issuance, the interest rate or rates or the maximum interest rate,
the date of the obligations and the dates of payment of interest
thereon, their denomination, and the establishment within or without
the state of a place or places of payment of bond service charges.
Sections 9.98 to 9.983 of the Revised Code are applicable to
obligations issued under this section, subject to any applicable
limitation under section 166.11 of the Revised Code. The purpose of
such obligations may be stated in the bond proceedings in terms
describing the general purpose or purposes to be served. The bond
proceedings also shall provide, subject to the provisions of any
other applicable bond proceedings, for the pledge of all, or such
part as the issuing authority may determine, of the pledged receipts
and the applicable special fund or funds to the payment of bond
service charges, which pledges may be made either prior or
subordinate to other expenses, claims, or payments, and may be made
to secure the obligations on a parity with obligations theretofore or
thereafter issued, if and to the extent provided in the bond
proceedings. The pledged receipts and special funds so pledged and
thereafter received by the state are immediately subject to the lien
of such pledge without any physical delivery thereof or further act,
and the lien of any such pledges is valid and binding against all
parties having claims of any kind against the state or any
governmental agency of the state, irrespective of whether such
parties have notice thereof, and shall create a perfected security
interest for all purposes of Chapter 1309. of the Revised Code,
without the necessity for separation or delivery of funds or for the
filing or recording of the bond proceedings by which such pledge is
created or any certificate, statement or other document with respect
thereto; and the pledge of such pledged receipts and special funds is
effective and the money therefrom and thereof may be applied to the
purposes for which pledged without necessity for any act of
appropriation. Every pledge, and every covenant and agreement made
with respect thereto, made in the bond proceedings may therein be
extended to the benefit of the owners and holders of obligations
authorized by this section, and to any trustee therefor, for the
further security of the payment of the bond service charges.
(E)
The bond proceedings may contain additional provisions as to:
(1)
The redemption of obligations prior to maturity at the option of the
issuing authority at such price or prices and under such terms and
conditions as are provided in the bond proceedings;
(2)
Other terms of the obligations;
(3)
Limitations on the issuance of additional obligations;
(4)
The terms of any trust agreement or indenture securing the
obligations or under which the same may be issued;
(5)
The deposit, investment and application of special funds, and the
safeguarding of moneys on hand or on deposit, without regard to
Chapter 131. or 135. of the Revised Code, but subject to any special
provisions of this chapter, with respect to particular funds or
moneys, provided that any bank or trust company which acts as
depository of any moneys in the special funds may furnish such
indemnifying bonds or may pledge such securities as required by the
issuing authority;
(6)
Any or every provision of the bond proceedings being binding upon
such officer, board, commission, authority, agency, department, or
other person or body as may from time to time have the authority
under law to take such actions as may be necessary to perform all or
any part of the duty required by such provision;
(7)
Any provision that may be made in a trust agreement or indenture;
(8)
Any other or additional agreements with the holders of the
obligations, or the trustee therefor, relating to the obligations or
the security therefor, including the assignment of mortgages or other
security obtained or to be obtained for loans under section 122.43,
166.07, or 166.16 of the Revised Code.
(F)
The obligations may have the great seal of the state or a facsimile
thereof affixed thereto or printed thereon. The obligations and any
coupons pertaining to obligations shall be signed or bear the
facsimile signature of the issuing authority. Any obligations or
coupons may be executed by the person who, on the date of execution,
is the proper issuing authority although on the date of such bonds or
coupons such person was not the issuing authority. If the issuing
authority whose signature or a facsimile of whose signature appears
on any such obligation or coupon ceases to be the issuing authority
before delivery thereof, such signature or facsimile is nevertheless
valid and sufficient for all purposes as if the former issuing
authority had remained the issuing authority until such delivery; and
if the seal to be affixed to obligations has been changed after a
facsimile of the seal has been imprinted on such obligations, such
facsimile seal shall continue to be sufficient as to such obligations
and obligations issued in substitution or exchange therefor.
(G)
All obligations are negotiable instruments and securities under
Chapter 1308. of the Revised Code, subject to the provisions of the
bond proceedings as to registration. The obligations may be issued in
coupon or in registered form, or both, as the issuing authority
determines. Provision may be made for the registration of any
obligations with coupons attached thereto as to principal alone or as
to both principal and interest, their exchange for obligations so
registered, and for the conversion or reconversion into obligations
with coupons attached thereto of any obligations registered as to
both principal and interest, and for reasonable charges for such
registration, exchange, conversion, and reconversion.
(H)
Obligations may be sold at public sale or at private sale, as
determined in the bond proceedings.
Obligations
issued to provide moneys for the loan guarantee fund or the
innovation Ohio loan guarantee fund may, as determined by the issuing
authority, be sold at private sale, and without publication of a
notice of sale.
(I)
Pending preparation of definitive obligations, the issuing authority
may issue interim receipts or certificates which shall be exchanged
for such definitive obligations.
(J)
In the discretion of the issuing authority, obligations may be
secured additionally by a trust agreement or indenture between the
issuing authority and a corporate trustee which may be any trust
company or bank having a place of business within the state. Any such
agreement or indenture may contain the resolution or order
authorizing the issuance of the obligations, any provisions that may
be contained in any bond proceedings, and other provisions which are
customary or appropriate in an agreement or indenture of such type,
including, but not limited to:
(1)
Maintenance of each pledge, trust agreement, indenture, or other
instrument comprising part of the bond proceedings until the state
has fully paid the bond service charges on the obligations secured
thereby, or provision therefor has been made;
(2)
In the event of default in any payments required to be made by the
bond proceedings, or any other agreement of the issuing authority
made as a part of the contract under which the obligations were
issued, enforcement of such payments or agreement by mandamus, the
appointment of a receiver, suit in equity, action at law, or any
combination of the foregoing;
(3)
The rights and remedies of the holders of obligations and of the
trustee, and provisions for protecting and enforcing them, including
limitations on rights of individual holders of obligations;
(4)
The replacement of any obligations that become mutilated or are
destroyed, lost, or stolen;
(5)
Such other provisions as the trustee and the issuing authority agree
upon, including limitations, conditions, or qualifications relating
to any of the foregoing.
(K)
Any holders of obligations or trustees under the bond proceedings,
except to the extent that their rights are restricted by the bond
proceedings, may by any suitable form of legal proceedings, protect
and enforce any rights under the laws of this state or granted by
such bond proceedings. Such rights include the right to compel the
performance of all duties of the issuing authority, the director of
housing
and
development,
the Ohio air quality development authority, or the division of liquor
control required by this chapter or the bond proceedings; to enjoin
unlawful activities; and in the event of default with respect to the
payment of any bond service charges on any obligations or in the
performance of any covenant or agreement on the part of the issuing
authority, the director of
housing
and
development,
the Ohio air quality development authority, or the division of liquor
control in the bond proceedings, to apply to a court having
jurisdiction of the cause to appoint a receiver to receive and
administer the pledged receipts and special funds, other than those
in the custody of the treasurer of state, which are pledged to the
payment of the bond service charges on such obligations or which are
the subject of the covenant or agreement, with full power to pay, and
to provide for payment of bond service charges on, such obligations,
and with such powers, subject to the direction of the court, as are
accorded receivers in general equity cases, excluding any power to
pledge additional revenues or receipts or other income or moneys of
the issuing authority or the state or governmental agencies of the
state to the payment of such principal and interest and excluding the
power to take possession of, mortgage, or cause the sale or otherwise
dispose of any project facilities.
Each
duty of the issuing authority and the issuing authority's officers
and employees, and of each governmental agency and its officers,
members, or employees, undertaken pursuant to the bond proceedings or
any agreement or lease, lease-purchase agreement, or loan made under
authority of this chapter, and in every agreement by or with the
issuing authority, is hereby established as a duty of the issuing
authority, and of each such officer, member, or employee having
authority to perform such duty, specifically enjoined by the law
resulting from an office, trust, or station within the meaning of
section 2731.01 of the Revised Code.
The
person who is at the time the issuing authority, or the issuing
authority's officers or employees, are not liable in their personal
capacities on any obligations issued by the issuing authority or any
agreements of or with the issuing authority.
(L)
The issuing authority may authorize and issue obligations for the
refunding, including funding and retirement, and advance refunding
with or without payment or redemption prior to maturity, of any
obligations previously issued by the issuing authority. Such
obligations may be issued in amounts sufficient for payment of the
principal amount of the prior obligations, any redemption premiums
thereon, principal maturities of any such obligations maturing prior
to the redemption of the remaining obligations on a parity therewith,
interest accrued or to accrue to the maturity dates or dates of
redemption of such obligations, and any allowable costs including
expenses incurred or to be incurred in connection with such issuance
and such refunding, funding, and retirement. Subject to the bond
proceedings therefor, the portion of proceeds of the sale of
obligations issued under this division to be applied to bond service
charges on the prior obligations shall be credited to an appropriate
account held by the trustee for such prior or new obligations or to
the appropriate account in the bond service fund for such
obligations. Obligations authorized under this division shall be
deemed to be issued for those purposes for which such prior
obligations were issued and are subject to the provisions of this
section pertaining to other obligations, except as otherwise provided
in this section; provided that, unless otherwise authorized by the
general assembly, any limitations imposed by the general assembly
pursuant to this section with respect to bond service charges
applicable to the prior obligations shall be applicable to the
obligations issued under this division to refund, fund, advance
refund or retire such prior obligations.
(M)
The authority to issue obligations under this section includes
authority to issue obligations in the form of bond anticipation notes
and to renew the same from time to time by the issuance of new notes.
The holders of such notes or interest coupons pertaining thereto
shall have a right to be paid solely from the pledged receipts and
special funds that may be pledged to the payment of the bonds
anticipated, or from the proceeds of such bonds or renewal notes, or
both, as the issuing authority provides in the resolution or order
authorizing such notes. Such notes may be additionally secured by
covenants of the issuing authority to the effect that the issuing
authority and the state will do such or all things necessary for the
issuance of such bonds or renewal notes in appropriate amount, and
apply the proceeds thereof to the extent necessary, to make full
payment of the principal of and interest on such notes at the time or
times contemplated, as provided in such resolution or order. For such
purpose, the issuing authority may issue bonds or renewal notes in
such principal amount and upon such terms as may be necessary to
provide funds to pay when required the principal of and interest on
such notes, notwithstanding any limitations prescribed by or for
purposes of this section. Subject to this division, all provisions
for and references to obligations in this section are applicable to
notes authorized under this division.
The
issuing authority in the bond proceedings authorizing the issuance of
bond anticipation notes shall set forth for such bonds an estimated
interest rate and a schedule of principal payments for such bonds and
the annual maturity dates thereof, and for purposes of any limitation
on bond service charges prescribed under division (A) of section
166.11 of the Revised Code, the amount of bond service charges on
such bond anticipation notes is deemed to be the bond service charges
for the bonds anticipated thereby as set forth in the bond
proceedings applicable to such notes, but this provision does not
modify any authority in this section to pledge receipts and special
funds to, and covenant to issue bonds to fund, the payment of
principal of and interest and any premium on such notes.
(N)
Obligations issued under this section are lawful investments for
banks, societies for savings, savings and loan associations, deposit
guarantee associations, trust companies, trustees, fiduciaries,
insurance companies, including domestic for life and domestic not for
life, trustees or other officers having charge of sinking and bond
retirement or other special funds of political subdivisions and
taxing districts of this state, the commissioners of the sinking fund
of the state, the administrator of workers' compensation, the state
teachers retirement system, the public employees retirement system,
the school employees retirement system, and the Ohio police and fire
pension fund, notwithstanding any other provisions of the Revised
Code or rules adopted pursuant thereto by any governmental agency of
the state with respect to investments by them, and are also
acceptable as security for the deposit of public moneys.
(O)
Unless otherwise provided in any applicable bond proceedings, moneys
to the credit of or in the special funds established by or pursuant
to this section may be invested by or on behalf of the issuing
authority only in notes, bonds, or other obligations of the United
States, or of any agency or instrumentality of the United States,
obligations guaranteed as to principal and interest by the United
States, obligations of this state or any political subdivision of
this state, and certificates of deposit of any national bank located
in this state and any bank, as defined in section 1101.01 of the
Revised Code, subject to inspection by the superintendent of banks.
If the law or the instrument creating a trust pursuant to division
(J) of this section expressly permits investment in direct
obligations of the United States or an agency of the United States,
unless expressly prohibited by the instrument, such moneys also may
be invested in no-front-end-load money market mutual funds consisting
exclusively of obligations of the United States or an agency of the
United States and in repurchase agreements, including those issued by
the fiduciary itself, secured by obligations of the United States or
an agency of the United States; and in common trust funds established
in accordance with section 1111.20 of the Revised Code and consisting
exclusively of any such securities, notwithstanding division (A)(4)
of that section. The income from such investments shall be credited
to such funds as the issuing authority determines, and such
investments may be sold at such times as the issuing authority
determines or authorizes.
(P)
Provision may be made in the applicable bond proceedings for the
establishment of separate accounts in the bond service fund and for
the application of such accounts only to the specified bond service
charges on obligations pertinent to such accounts and bond service
fund and for other accounts therein within the general purposes of
such fund. Unless otherwise provided in any applicable bond
proceedings, moneys to the credit of or in the several special funds
established pursuant to this section shall be disbursed on the order
of the treasurer of state, provided that no such order is required
for the payment from the bond service fund when due of bond service
charges on obligations.
(Q)
The issuing authority may pledge all, or such portion as the issuing
authority determines, of the pledged receipts to the payment of bond
service charges on obligations issued under this section, and for the
establishment and maintenance of any reserves, as provided in the
bond proceedings, and make other provisions therein with respect to
pledged receipts as authorized by this chapter, which provisions are
controlling notwithstanding any other provisions of law pertaining
thereto.
(R)
The issuing authority may covenant in the bond proceedings, and any
such covenants are controlling notwithstanding any other provision of
law, that the state and applicable officers and governmental agencies
of the state, including the general assembly, so long as any
obligations are outstanding, shall:
(1)
Maintain statutory authority for and cause to be charged and
collected wholesale and retail prices for spirituous liquor sold by
the state or its agents so that the pledged receipts are sufficient
in amount to meet bond service charges, and the establishment and
maintenance of any reserves and other requirements provided for in
the bond proceedings, and, as necessary, to meet covenants contained
in contracts of guarantee made under section 166.06 of the Revised
Code;
(2)
Take or permit no action, by statute or otherwise, that would impair
the exemption from federal income taxation of the interest on the
obligations.
(S)
There is hereby created the economic development bond service fund,
which shall be in the custody of the treasurer of state but shall be
separate and apart from and not a part of the state treasury. All
moneys received by or on account of the issuing authority or state
agencies and required by the applicable bond proceedings, consistent
with this section, to be deposited, transferred, or credited to a
bond service fund or the economic development bond service fund, and
all other moneys transferred or allocated to or received for the
purposes of the fund, shall be deposited and credited to such fund
and to any separate accounts therein, subject to applicable
provisions of the bond proceedings, but without necessity for any act
of appropriation. During the period beginning with the date of the
first issuance of obligations and continuing during such time as any
such obligations are outstanding, and so long as moneys in the
pertinent bond service funds are insufficient to pay all bond
services charges on such obligations becoming due in each year, a
sufficient amount of the gross profit on the sale of spirituous
liquor included in pledged receipts are committed and shall be paid
to the bond service fund or economic development bond service fund in
each year for the purpose of paying the bond service charges becoming
due in that year without necessity for further act of appropriation
for such purpose and notwithstanding anything to the contrary in
Chapter 4301. of the Revised Code. The economic development bond
service fund is a trust fund and is hereby pledged to the payment of
bond service charges to the extent provided in the applicable bond
proceedings, and payment thereof from such fund shall be made or
provided for by the treasurer of state in accordance with such bond
proceedings without necessity for any act of appropriation.
(T)
The obligations, the transfer thereof, and the income therefrom,
including any profit made on the sale thereof, shall at all times be
free from taxation within the state.
Sec.
166.09.
There
shall be credited to the facilities establishment fund the moneys
received by the state from the repayment of loans and recovery on
loan guarantees, including interest thereon, made from the facilities
establishment fund or from the loan guarantee fund and from the sale,
lease, or other disposition of property acquired or constructed from
moneys in the facilities establishment fund with moneys derived from
the proceeds of the sale of obligations under section 166.08 of the
Revised Code. Such moneys shall be applied as provided in this
chapter pursuant to appropriations made by the general assembly.
Notwithstanding the foregoing, any amounts recovered on loan
guarantees shall be deposited to the credit of the loan guarantee
fund to the extent necessary to restore that fund to the level
required by any guarantee contract, and the other moneys referred to
in the first sentence of this section may be deposited to the credit
of separate accounts within the facilities establishment fund or in
the bond service fund and pledged to the security of obligations,
applied to the payment of bond service charges without need for
appropriation, released from any such pledge and transferred to the
facilities establishment fund or other account therein, all as and to
the extent provided in the bond proceedings pursuant to written
directions by the director of
housing
and
development.
Accounts may be established by the director in the facilities
establishment fund for particular projects or otherwise. Income from
the investment of moneys in the facilities establishment fund shall
be credited to that fund and, as may be provided in bond proceedings,
to particular accounts therein. The treasurer of state may withdraw
from the facilities establishment fund or, subject to provisions of
the applicable bond proceedings, from any special funds established
pursuant to the bond proceedings, or from any accounts in such funds,
any amounts of investment income required to be rebated and paid to
the federal government in order to maintain the exemption from
federal income taxation of interest on obligations issued under this
chapter, which withdrawal and payment may be made without necessity
for appropriation.
Sec.
166.12.
(A)
The general assembly finds that in order to maintain and enhance the
competitiveness of the Ohio economy and to improve the economic
welfare of all of the people of the state, it is necessary to ensure
that high-value jobs based on research, technology, and innovation
will be available to the people of this state. Further, the general
assembly finds that the attraction of such jobs and their presence in
this state will materially contribute to the economic welfare of all
of the people of the state. Accordingly, it is declared to be the
public policy of this state, through the operations under sections
166.01 and 166.12 to 166.16 of the Revised Code, and the loan and
loan guarantee provisions contained in those sections, applicable
laws adopted pursuant to Section 13 of Article VIII, Ohio
Constitution, and other authority vested in the general assembly, to
assist in and facilitate the establishment or development of eligible
innovation projects or assist and cooperate with any governmental
agency in achieving that purpose.
(B)
In furtherance of that public policy and to implement that purpose,
the director of
housing
and
development
may:
(1)
After consultation with appropriate governmental agencies, enter into
agreements with persons engaged in industry, commerce, distribution,
or research and with governmental agencies to induce such persons to
acquire, construct, reconstruct, rehabilitate, renovate, enlarge,
improve, equip, or furnish, or otherwise develop, eligible innovation
projects and make provision therein for project facilities and
governmental actions, as authorized by sections 166.01 and 166.12 to
166.16 of the Revised Code and other applicable laws;
(2)
Provide for innovation Ohio loan guarantees and loans under sections
166.15 and 166.16 of the Revised Code;
(3)
Subject to the release of such moneys by the controlling board,
contract for labor and materials needed for, or contract with others,
including governmental agencies, to provide, eligible innovation
projects the allowable innovation costs of which are to be paid for
or reimbursed from moneys in the innovation Ohio loan fund, and
contract for the operation of such eligible innovation projects;
(4)
Subject to release thereof by the controlling board, from moneys in
the innovation Ohio loan fund, acquire or contract to acquire by
gift, exchange, or purchase, including the obtaining and exercise of
purchase options, innovation property, and convey or otherwise
dispose of, or provide for the conveyance or disposition of,
innovation property so acquired or contracted to be acquired by sale,
exchange, lease, lease purchase, conditional or installment sale,
transfer, or other disposition, including the grant of an option to
purchase, to any governmental agency or to any other person without
necessity for competitive bidding and upon such terms and conditions
and manner of consideration pursuant to, and as the director
determines to be appropriate to satisfy the objectives of, Chapter
166. of the Revised Code;
(5)
Retain the services of or employ financial consultants, appraisers,
consulting engineers, superintendents, managers, construction and
accounting experts, attorneys, and employees, agents, and independent
contractors as are necessary in the director's judgment and fix the
compensation for their services;
(6)
Receive and accept from any person grants, gifts, and contributions
of money, property, labor, and other things of value, to be held,
used, and applied only for the purpose for which such grants, gifts,
and contributions are made;
(7)
Enter into appropriate arrangements and agreements with any
governmental agency for the taking or provision by that governmental
agency of any governmental action with respect to innovation
projects;
(8)
Do all other acts and enter into contracts and execute all
instruments necessary or appropriate to carry out the provisions of
sections 166.01 and 166.12 to 166.16 of the Revised Code;
(9)
With respect to property, including but not limited to innovation
property, take such interests, including but not limited to
mortgages, security interests, assignments, and exclusive or
non-exclusive licenses, as may be necessary or appropriate under the
circumstances, to ensure that innovation property is used within this
state and that products or services associated with that innovation
property are produced or, in the case of services, delivered, by
persons employed within this state;
(10)
Adopt rules necessary to implement any of the provisions of sections
166.01 and 166.12 to 166.16 of the Revised Code applicable to the
director.
(C)
The determinations by the director that facilities or property
constitute eligible innovation projects and that costs of such
facilities or property are allowable innovation costs, and all other
determinations relevant thereto or to an action taken or agreement
entered into, shall be conclusive for purposes of the validity and
enforceability of rights of parties arising from actions taken and
agreements entered into under sections 166.01 and 166.12 to 166.16 of
the Revised Code.
Sec.
166.13.
(A)
Prior to entering into each agreement to provide innovation financial
assistance under sections 166.12, 166.15, and 166.16 of the Revised
Code, the director of
housing
and
development
services shall determine whether the assistance will conform to the
requirements of sections 166.12 to 166.16 of the Revised Code. Such
determination, and the facts upon which it is based, shall be set
forth by the director in submissions made to the controlling board
when the director seeks a release of moneys under section 166.12 of
the Revised Code. An agreement to provide assistance under sections
166.12, 166.15, and 166.16 of the Revised Code shall set forth the
determination, which shall be conclusive for purposes of the validity
and enforceability of the agreement and any innovation loan
guarantees, innovation loans, or other agreements entered into
pursuant to the agreement to provide innovation financial assistance.
(B)
Whenever a person applies for innovation financial assistance under
sections 166.12, 166.15, and 166.16 of the Revised Code and the
eligible innovation project for which innovation financial assistance
is requested is to relocate an eligible innovation project that is
currently being operated by the person and that is located in another
county, municipal corporation, or township, the person shall provide
written notification to the appropriate local governmental bodies and
state officials. The director may not enter into an agreement to
provide innovation financial assistance until the director determines
that the appropriate local government bodies and state officials have
been notified.
(C)
As used in division (B) of this section:
(1)
"Appropriate local governmental bodies" means:
(a)
The boards of county commissioners or legislative authorities of the
county in which the project for which innovation financial assistance
is requested is located and of the county in which the eligible
innovation project to be replaced is located;
(b)
The legislative authority of the municipal corporation or the board
of township trustees of the township in which the eligible innovation
project for which innovation financial assistance is requested is
located; and
(c)
The legislative authority of the municipal corporation or the board
of township trustees of the township in which the eligible innovation
project to be replaced is located.
(2)
"State officials" means:
(a)
The state representative and state senator in whose districts the
project for which innovation financial assistance is requested is
located;
(b)
The state representative and state senator in whose districts the
innovation project to be replaced is located.
Sec.
166.14.
(A)
In determining the eligible innovation projects to be assisted and
the nature, amount, and terms of innovation financial assistance to
be provided for an eligible innovation project under sections 166.12
to 166.16 of the Revised Code:
(1)
The director of
housing
and
development
services
shall
take into consideration all of the following:
(a)
The number of jobs to be created or preserved by the eligible
innovation project, directly or indirectly;
(b)
Payrolls, and the taxes generated, at both state and local levels, by
or in connection with the eligible innovation project and by the
employment created or preserved by or in connection with the eligible
innovation project;
(c)
The size, nature, and cost of the eligible innovation project,
including the prospect of the eligible innovation project for
providing long-term jobs in enterprises consistent with the changing
economics of the state and the nation;
(d)
The needs of any private sector enterprise to be assisted;
(e)
The amount and kind of assistance, if any, to be provided to the
private sector enterprise by other governmental agencies through tax
exemption or abatement, financing assistance with industrial
development bonds, and otherwise, with respect to the eligible
innovation project or with respect to any providers of innovation
property to be included as part of the eligible innovation project;
(f)
The likelihood of the successful implementation of the proposed
eligible innovation project;
(g)
Whether the eligible innovation project involves the use of
technology in a targeted innovation industry sector.
(2)
The benefits to the local area, including taxes, jobs, and reduced
unemployment and reduced welfare costs, among others, may be accorded
value in the leasing or sales of innovation project facilities and in
loan and guarantee arrangements.
(3)
In making determinations under division (A)(1) of this section, the
director may consider the effect of an eligible innovation project
upon any entity engaged to provide innovation property to be
acquired, leased, or licensed in connection with such assistance.
(B)
Financial statements and other data submitted to the director of
housing
and
development
services
or
the controlling board by any private sector person in connection with
innovation financial assistance under sections 166.12, 166.15, and
166.16 of the Revised Code, or any information taken from such
statements or data for any purpose, shall not be open to public
inspection.
Sec.
166.15.
(A)
Subject to any limitations as to aggregate amounts thereof that may
from time to time be prescribed by the general assembly and to other
applicable provisions of this chapter, the director of
housing
and
development
may, on behalf of the state, enter into contracts to guarantee the
repayment or payment of the unpaid principal amount of loans made,
including bonds, notes, or other certificates issued or given to
provide funds, to pay allowable innovation costs of eligible
innovation projects. The guarantees shall be secured solely by and
payable solely from the innovation Ohio loan guarantee fund and
unencumbered and available moneys in the innovation Ohio loan fund,
in the manner and to the extent provided in guarantee contracts
consistent with this section. The guarantees shall not constitute
general obligations of the state or of any political subdivision, and
moneys raised by taxation shall not be obligated or pledged for the
payment of the guarantees.
(B)
Before guaranteeing any such repayments or payments, the director
shall determine that:
(1)
The project is an eligible innovation project and is economically
sound.
(2)
The principal amount to be guaranteed does not exceed ninety per cent
of the allowable innovation costs of the eligible innovation project
as determined by the director. In making this determination, the
director may, in the director's discretion, engage an independent
engineer, architect, appraiser, or other professional to make it,
pursuant to a contract to be paid solely from the innovation Ohio
loan fund, subject to approval of the controlling board.
(3)
The principal amount to be guaranteed has a satisfactory maturity
date or dates, which in no case shall be later than twenty years from
the effective date of the guarantee.
(4)
The principal obligor, or primary guarantor, is responsible and is
reasonably expected to be able to meet the payments under the loan,
bonds, notes, or other certificates.
(5)
The loan or documents pertaining to the bonds, notes, or other
certificates to be guaranteed contains provisions for payment by the
principal obligor satisfactory to the director and is in such form
and contains such terms and provisions for the protection of the
lenders as are generally consistent with commercial practice for the
type of eligible innovation project that is the subject of the
assistance, including, where applicable, provisions with respect to
property insurance, repairs, alterations, payment of taxes and
assessments, delinquency charges, default remedies, acceleration of
maturity, prior, additional, and secondary liens, and other matters
as the director may approve.
(C)
The contract of guarantee may make provision for the conditions of,
time for, and manner of fulfillment of the guarantee commitment,
subrogation of this state to the rights of the parties guaranteed and
exercise of such parties' rights by this state, giving this state the
options of making payment of the principal amount guaranteed in one
or more installments and, if deferred, to pay interest thereon from
the innovation Ohio loan guarantee fund, and any other terms or
conditions customary to such guarantees and as the director may
approve, and may contain provisions for securing the guarantee in the
manner consistent with this section, covenants on behalf of this
state for the maintenance of the loan guarantee fund created by this
section and of receipts to it permitted by this chapter, including
covenants on behalf of this state to issue obligations under section
166.08 of the Revised Code to provide moneys to the innovation Ohio
loan guarantee fund to fulfill such guarantees, and covenants
restricting the aggregate amount of guarantees that may be contracted
under this section and obligations that may be issued under section
166.08 of the Revised Code, and terms pertinent to either, to better
secure the parties guaranteed.
(D)
The innovation Ohio loan guarantee fund is hereby created as a
special revenue fund and a trust fund which shall be in the custody
of the treasurer of state but shall be separate and apart from and
not a part of the state treasury and shall consist of all grants,
gifts, and contributions of moneys or rights to moneys lawfully
designated for or deposited in such fund, all moneys and rights to
moneys lawfully appropriated and transferred to such fund, including
moneys received from the issuance of obligations under section 166.08
of the Revised Code, and moneys deposited to such fund pursuant to
division (F) of this section. The innovation Ohio loan guarantee fund
shall not be comprised, in any part, of moneys raised by taxation.
(E)
The director may fix service charges for making a guarantee. The
charges shall be payable at such times and place and in such amounts
and manner as may be prescribed by the director.
(F)
The treasurer of state shall serve as agent for the director in the
making of deposits and withdrawals and maintenance of records
pertaining to the innovation Ohio loan guarantee fund. Prior to the
director's entry into a contract providing for the making of a
guarantee payable from the innovation Ohio loan guarantee fund, the
treasurer of state shall cause to be transferred from the innovation
Ohio loan fund to the innovation Ohio loan guarantee fund an amount
sufficient to make the aggregate balance therein, taking into account
the proposed loan guarantee equal to the innovation Ohio loan
guarantee reserve requirement. Thereafter, the treasurer of state
shall cause the balance in the innovation Ohio loan guarantee fund to
be at least equal to the innovation Ohio loan guarantee reserve
requirement. Funds from the innovation Ohio loan guarantee fund shall
be disbursed under a guarantee made pursuant to this section to
satisfy a guaranteed repayment or payment which is in default. After
withdrawing moneys from the innovation Ohio loan guarantee fund, the
treasurer of state shall transfer moneys in the innovation Ohio loan
fund to the innovation Ohio loan guarantee fund to satisfy any
repayment obligations. Whenever these moneys are inadequate to meet
the requirements of a guarantee, the treasurer of state shall,
without need of appropriation or further action by the director,
provide for a withdrawal and transfer to the innovation Ohio loan
guarantee fund and then to the guaranteed party of moneys in such
amount as is necessary to meet the guarantee, from unencumbered and
available moneys in the innovation Ohio loan fund. The disbursements
shall be made in the manner and at the times provided in the
guarantees. Within ninety days following a disbursement of money from
the innovation Ohio loan guarantee fund, the treasurer of state,
without need of appropriation or further action by the director,
shall provide for a withdrawal and transfer to the innovation Ohio
loan guarantee fund from unencumbered and available moneys in the
innovation Ohio loan fund, including moneys from the repayment of
loans made from that fund, of an amount sufficient to cause the
balance in the innovation Ohio loan guarantee fund to be at least
equal to the innovation Ohio loan guarantee reserve requirement.
(G)
Any guaranteed parties under this section, except to the extent that
their rights are restricted by the guarantee documents, may by any
suitable form of legal proceedings, protect and enforce any rights
under the laws of this state or granted by such guarantee or
guarantee documents. Such rights include the right to compel the
performance of all duties of the director and the treasurer of state
required by this section or the guarantee or guarantee documents; and
in the event of default with respect to the payment of any
guarantees, to apply to a court having jurisdiction of the cause to
appoint a receiver to receive and administer the moneys pledged to
such guarantee with full power to pay, and to provide for payment of,
such guarantee, and with such powers, subject to the direction of the
court, as are accorded receivers in general equity cases, excluding
any power to pledge or apply additional revenues or receipts or other
income or moneys of this state or governmental agencies of the state
to the payment of such guarantee. Each duty of the director and the
treasurer of state and their officers and employees, and of each
governmental agency and its officers, members, or employees, required
or undertaken pursuant to this section or a guarantee made under
authority of this section, is hereby established as a duty of the
director and the treasurer of state, and of each such officer,
member, or employee having authority to perform such duty,
specifically enjoined by the law resulting from an office, trust, or
station within the meaning of section 2731.01 of the Revised Code.
The persons who are at the time the director and treasurer of state,
or their officers or employees, are not liable in their personal
capacities on any guarantees or contracts to make guarantees by the
director.
(H)
The determinations of the director under divisions (B) and (C) of
this section shall be conclusive for purposes of the validity of a
guarantee evidenced by a contract signed by the director, and such
guarantee shall be incontestable as to money advanced under loans to
which such guarantees are by their terms applicable.
Sec.
166.16.
(A)
The director of
housing
and
development,
with the approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend moneys in the
innovation Ohio loan fund to persons for the purpose of paying
allowable innovation costs of an eligible innovation project if the
director determines that:
(1)
The project is an eligible innovation project and is economically
sound.
(2)
The borrower is unable to finance the necessary allowable costs
through ordinary financial channels upon comparable terms.
(3)
The amount to be lent from the innovation Ohio loan fund will not
exceed ninety per cent of the total costs of the eligible innovation
project.
(4)
The repayment of the loan from the innovation Ohio loan fund will be
secured by a mortgage, lien, assignment, or pledge, or other interest
in property or innovation property at such level of priority and
value as the director may determine necessary, provided that, in
making such a determination, the director may take into account the
value of any rights granted by the borrower to the director to
control the use of any property or innovation property of the
borrower under the circumstances described in the loan documents.
(B)
The determinations of the director under division (A) of this section
shall be conclusive for purposes of the validity of a loan commitment
evidenced by a loan agreement signed by the director.
(C)
Fees, charges, rates of interest, times of payment of interest and
principal, and other terms, conditions, and provisions of and
security for loans made from the innovation Ohio loan fund shall be
such as the director determines to be appropriate and in furtherance
of the purpose for which the loans are made. The moneys used in
making the loans shall be disbursed from the innovation Ohio loan
fund upon order of the director. Unless otherwise specified in any
indenture or other instrument securing obligations under division (D)
of section 166.08 of the Revised Code, any payments of principal and
interest from loans made from the innovation Ohio loan fund shall be
paid to the innovation Ohio loan fund and used for the purpose of
making loans.
(D)
There is hereby created in the state treasury the innovation Ohio
loan fund. The fund shall consist of grants, gifts, and contributions
of moneys or rights to moneys lawfully designated for or deposited in
such fund, all moneys and rights to moneys lawfully appropriated and
transferred to such fund, including moneys received from the issuance
of obligations for purposes of allowable innovation costs under
section 166.08 of the Revised Code, and moneys deposited to such fund
pursuant to divisions (C) and (G) of this section. All investment
earnings on the cash balance in the fund shall be credited to the
fund. The fund shall not be comprised, in any part, of moneys raised
by taxation.
(E)
The director may take actions necessary or appropriate to collect or
otherwise deal with any loan made under this section.
(F)
The director may fix service charges for the making of a loan. The
charges shall be payable at such times and place and in such amounts
and manner as may be prescribed by the director.
(G)(1)
There shall be credited to the innovation Ohio loan fund the moneys
received by this state from the repayment of innovation Ohio loans
and recovery on loan guarantees, including interest thereon, made
from the innovation Ohio loan fund or from the innovation Ohio loan
guarantee fund and from the sale, lease, or other disposition of
property acquired or constructed with moneys in the innovation Ohio
loan fund with moneys derived from the proceeds of the sale of
obligations under section 166.08 of the Revised Code. Such moneys
shall be applied as provided in this chapter pursuant to
appropriations made by the general assembly.
(2)
Notwithstanding division (G)(1) of this section, any amounts
recovered on innovation Ohio loan guarantees shall be deposited to
the credit of the innovation Ohio loan guarantee fund to the extent
necessary to restore that fund to the innovation Ohio loan guarantee
reserve requirement or any level in excess thereof required by any
guarantee contract. Money in the innovation Ohio loan guarantee fund
in excess of the innovation Ohio loan guarantee reserve requirement,
but subject to the provisions and requirements of any guarantee
contracts, may be transferred to the innovation Ohio loan fund by the
treasurer of state upon the order of the director of
housing
and
development.
(3)
In addition to the requirements of division (G)(1) of this section,
moneys referred to in that division may be deposited to the credit of
separate accounts within the innovation Ohio loan fund or in the bond
service fund and pledged to the security of obligations, applied to
the payment of bond service charges without need for appropriation,
released from any such pledge and transferred to the innovation Ohio
loan fund, all as and to the extent provided in the bond proceedings
pursuant to written directions by the director of
housing
and
development.
Accounts may be established by the director in the innovation Ohio
loan fund for particular projects or otherwise. The director may
withdraw from the innovation Ohio loan fund or, subject to provisions
of the applicable bond proceedings, from any special funds
established pursuant to the bond proceedings, or from any accounts in
such funds, any amounts of investment income required to be rebated
and paid to the federal government in order to maintain the exemption
from federal income taxation of interest on obligations issued under
this chapter, which withdrawal and payment may be made without
necessity for appropriation.
Sec.
166.17.
(A)
The general assembly finds that in order to enhance the economic
opportunities available to and improve the economic welfare of all
the people of the state, and to maintain and enhance the
competitiveness of the Ohio economy, it is necessary to ensure that
the people of the state will continue to have access to high-value
jobs in technology, and that, to facilitate such continued access, it
is necessary to provide incentives to retain and attract businesses
that will develop new or improved technologies, processes, and
products, or apply existing technologies in new ways. Further, the
general assembly finds that the attraction of such jobs and their
presence in this state will materially contribute to the economic
welfare of all the people of the state. Accordingly, it is declared
to be the public policy of this state, through operations under
sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code
and the provisions for financial assistance contained in those
sections, other applicable laws adopted pursuant to Section 13 of
Article VIII, Ohio Constitution, and other authority vested in the
general assembly, to assist in and facilitate the establishment or
development of eligible research and development projects or assist
and cooperate with any governmental agency in achieving that purpose.
(B)
In furtherance of that public policy and to implement that purpose,
the director of
housing
and
development
may do any of the following:
(1)
After consultation with appropriate governmental agencies, enter into
agreements with persons engaged in industry, commerce, distribution,
or research and with governmental agencies, to induce such persons to
acquire, construct, reconstruct, rehabilitate, renovate, enlarge,
improve, equip, furnish, or develop eligible research and development
projects, or to enable governmental agencies to acquire, construct,
reconstruct, rehabilitate, renovate, enlarge, improve, equip,
furnish, or develop eligible research and development projects for
lease to persons engaged in industry, commerce, distribution, or
research;
(2)
Provide for loans under section 166.21 of the Revised Code to finance
eligible research and development projects;
(3)
Subject to the release of moneys in the research and development loan
fund by the controlling board, contract for labor and materials
needed for, or contract with others, including governmental agencies,
to provide, eligible research and development projects, the allowable
costs of which are to be paid for or reimbursed from such moneys, and
contract for the operation of those projects;
(4)
From moneys in the research and development loan fund, subject to
release thereof by the controlling board, acquire or contract to
acquire property by gift, exchange, or purchase, including by
obtaining and exercising purchase options, and convey or otherwise
dispose of, or provide for the conveyance or disposition of, that
property by sale, exchange, lease, lease purchase, conditional or
installment sale, transfer, or other disposition, including the grant
of an option to purchase, to any governmental agency or to any other
person without necessity for competitive bidding and upon such terms
and conditions and manner of consideration pursuant to, and as the
director determines to be appropriate to satisfy the objectives of,
Chapter 166. of the Revised Code;
(5)
Retain the services of or employ financial consultants, appraisers,
consulting engineers, superintendents, managers, construction and
accounting experts, attorneys, employees, agents, and independent
contractors as are necessary in the director's judgment, and fix the
compensation for their services;
(6)
Receive and accept from any person, grants, gifts, and contributions
of money, property, labor, and other things of value, to be held,
used, and applied only for the purpose for which such grants, gifts,
and contributions are made;
(7)
Enter into arrangements and agreements with any governmental agency
for the agency to take or provide any governmental action with
respect to eligible research and development projects;
(8)
Do all other acts, enter into contracts, execute all instruments, and
make all certifications necessary or appropriate to carry out
sections 166.01, 166.17 to 166.21, 5733.352, and 5747.331 of the
Revised Code;
(9)
With respect to property that is the subject of or related to
research and development financial assistance, take such interests,
including, but not limited to, mortgages, security interests,
leasehold interests, assignments, and exclusive or nonexclusive
licenses, as may be necessary or appropriate under the circumstances,
to ensure that the property is used within this state and that
products or services associated with that property are produced or,
in the case of services, delivered, by persons employed within this
state;
(10)
Adopt rules necessary to implement any of the provisions of sections
166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code that are
applicable to the director.
(C)
The determination by the director that facilities or property
constitute an eligible research and development project and that the
costs of such facilities or property are allowable costs related to
the project, and all other determinations relevant thereto, or to an
action taken or agreement entered into, shall be conclusive for
purposes of the validity and enforceability of rights of parties
arising from actions taken and agreements entered into under sections
166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code.
Sec.
166.18.
(A)
Prior to entering into each agreement to provide research and
development financial assistance, the director of
housing
and
development
services
shall
determine whether the assistance will conform to the requirements of
sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised
Code. Such determination, and the facts upon which it is based, shall
be set forth by the director in submissions made to the controlling
board when the director seeks a release of moneys under section
166.17 of the Revised Code. An agreement to provide research and
development financial assistance under section 166.17 or 166.21 of
the Revised Code shall set forth the determination, which shall be
conclusive for purposes of the validity and enforceability of the
agreement, and any loans or other agreements entered into pursuant to
the agreement, to provide research and development financial
assistance.
(B)
Whenever a person applies for research and development financial
assistance, and the eligible research and development project for
which that assistance is requested is to relocate an eligible
research and development project that is currently being operated by
the person and that is located in another county, municipal
corporation, or township within the state, the person shall provide
written notification to the appropriate local governmental bodies and
state officials. The director may not enter into an agreement to
provide research and development financial assistance until the
director determines that the appropriate local government bodies and
state officials have been notified.
(C)
As used in division (B) of this section:
(1)
"Appropriate local governmental bodies" means all of the
following:
(a)
The board of county commissioners of or legislative authorities of
special districts in the county in which the eligible research and
development project for which research and development financial
assistance is requested is located and of the county in which the
project will be located;
(b)
The legislative authority of the municipal corporation or the board
of township trustees of the township in which the eligible research
and development project for which research and development financial
assistance is requested is located and of the municipal corporation
or township in which the project will be located.
(2)
"State officials" means both of the following:
(a)
The state representative and state senator in whose district the
eligible research and development project for which research and
development financial assistance is requested is located;
(b)
The state representative and state senator in whose district the
eligible research and development project will be located.
Sec.
166.19.
(A)(1)
In determining the eligible research and development projects to be
assisted and the nature, amount, and terms of the research and
development financial assistance to be provided, the director of
housing
and
development
services
shall
consider all of the following:
(a)
The number of jobs to be created or preserved, directly or
indirectly, by or in connection with the eligible research and
development project;
(b)
Payrolls, and the taxes generated at both state and local levels, by
the eligible research and development project and by the employment
created or preserved by or in connection with the project;
(c)
The size, nature, and cost of the eligible research and development
project;
(d)
The likelihood that the eligible research and development project
will create long-term jobs in enterprises consistent with the
changing economy of the state and nation;
(e)
The needs of any private sector enterprise to be assisted, taking
into consideration the amount and kind of assistance, if any, to be
provided to the private sector enterprise by other governmental
agencies through tax exemption or abatement, financing assistance
with industrial development bonds, and otherwise, with respect to the
eligible research and development project or with respect to any
providers of research and development property to be included as part
of the project;
(f)
The likelihood that the eligible research and development project
will be successfully implemented.
(2)
The director may consider the benefits to the local area, including
taxes, jobs, and reduced unemployment and reduced welfare costs, in
the leasing or sale of eligible research and development project
facilities and in loan arrangements.
(3)
The director may consider the effect of an eligible research and
development project upon any entity engaged to provide research and
development property to be acquired, leased, or licensed in
connection with research and development financial assistance.
(B)
Financial statements and other data submitted to the director of
housing
and
development
services
or
the controlling board by any private sector person in connection with
research and development financial assistance, or any information
taken from such statements or data for any purpose, shall not be open
to public inspection.
Sec.
166.20.
There
is hereby created in the state treasury the research and development
loan fund. The fund shall consist of moneys received from the
issuance of obligations for research and development purposes under
section 166.08 of the Revised Code; moneys deposited to the fund
pursuant to divisions (C) and (G) of section 166.21 of the Revised
Code; service charges imposed under section 166.21 of the Revised
Code; and any grants, gifts, or contributions of money received by
the director of
housing
and
development
to be used for making loans under section 166.21 of the Revised Code.
All investment earnings on the cash balance in the fund shall be
credited to the fund. The fund shall not be comprised, in any part,
of moneys raised by taxation.
Sec.
166.21.
(A)
The director of
housing
and
development
services
,
with the approval of the controlling board and subject to other
applicable provisions of this chapter, may lend moneys in the
research and development loan fund to persons for the purpose of
paying allowable costs of eligible research and development projects,
if the director determines that all of the following conditions are
met:
(1)
The project is an eligible research and development project and is
economically sound;
(2)
The amount to be lent from the research and development loan fund
will not exceed seventy-five per cent of the total costs of the
eligible research and development project;
(3)
The repayment of the loan from the research and development loan fund
will be secured by a mortgage, assignment, pledge, lien provided for
under section 9.661 of the Revised Code, or other interest in
property or other assets of the borrower, at such level of priority
and value as the director considers necessary, provided that, in
making such a determination, the director shall take into account the
value of any rights granted by the borrower to the director to
control the use of any assets of the borrower under the circumstances
described in the loan documents.
(B)
The determinations of the director under division (A) of this section
shall be conclusive for purposes of the validity of a loan commitment
evidenced by a loan agreement signed by the director.
(C)
Fees, charges, rates of interest, times of payment of interest and
principal, and other terms and conditions of, and security for, loans
made from the research and development loan fund shall be such as the
director determines to be appropriate and in furtherance of the
purpose for which the loans are made. The moneys used in making loans
shall be disbursed from the fund upon order of the director. Unless
otherwise specified in any indenture or other instrument securing
obligations under division (D) of section 166.08 of the Revised Code,
any payments of principal and interest from loans made from the fund
shall be paid to the fund and used for the purpose of making loans
under this section.
(D)(1)
As used in this division, "qualified research and development
loan payments" means payments of principal and interest on a
loan made from the research and development loan fund.
(2)
Each year, the director may, upon request, issue a certificate to a
borrower of moneys from the research and development loan fund
indicating the amount of the qualified research and development loan
payments made by or on behalf of the borrower during the calendar
year immediately preceding the tax year, as defined in section
5733.04 of the Revised Code, or taxable year, as defined in section
5747.01 of the Revised Code, for which the certificate is issued. In
addition to indicating the amount of qualified research and
development loan payments, the certificate shall include a
determination of the director that as of the thirty-first day of
December of the calendar year for which the certificate is issued,
the borrower is not in default under the loan agreement, lease, or
other instrument governing repayment of the loan, including
compliance with the job creation and retention commitments that are
part of the qualified research and development project. If the
director determines that a borrower is in default under the loan
agreement, lease, or other instrument governing repayment of the
loan, the director may reduce the amount, percentage, or term of the
credit allowed under section 5733.352, 5747.331, or 5751.52 of the
Revised Code with respect to the certificate issued to the borrower.
The director shall not issue a certificate in an amount that exceeds
one hundred fifty thousand dollars.
(E)
The director may take actions necessary or appropriate to collect or
otherwise deal with any loan made under this section.
(F)
The director may fix service charges for the making of a loan. The
charges shall be payable at such times and place and in such amounts
and manner as may be prescribed by the director.
(G)(1)
There shall be credited to the research and development loan fund
moneys received by this state from the repayment of loans, including
interest thereon, made from the fund, and moneys received from the
sale, lease, or other disposition of property acquired or constructed
with moneys in the fund derived from the proceeds of the sale of
obligations under section 166.08 of the Revised Code. Moneys in the
fund shall be applied as provided in this chapter pursuant to
appropriations made by the general assembly.
(2)
In addition to the requirements in division (G)(1) of this section,
moneys referred to in that division may be deposited to the credit of
separate accounts established by the director of
housing
and
development
services
within
the research and development loan fund or in the bond service fund
and pledged to the security of obligations, applied to the payment of
bond service charges without need for appropriation, released from
any such pledge and transferred to the research and development loan
fund, all as and to the extent provided in the bond proceedings
pursuant to written directions of the director. Accounts may be
established by the director in the research and development loan fund
for particular projects or otherwise. The director may withdraw from
the fund or, subject to provisions of the applicable bond
proceedings, from any special funds established pursuant to the bond
proceedings, or from any accounts in such funds, any amounts of
investment income required to be rebated and paid to the federal
government in order to maintain the exemption from federal income
taxation of interest on obligations issued under this chapter, which
withdrawal and payment may be made without the necessity for
appropriation.
Sec.
166.25.
(A)
The director of
housing
and
development
services
,
with the approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend money in the
logistics and distribution infrastructure fund to persons for the
purpose of paying allowable costs of eligible logistics and
distribution projects.
(B)
In determining the eligible logistics and distribution projects to be
assisted and the nature, amount, and terms of assistance to be
provided for an eligible logistics and distribution project, the
director shall consult with appropriate governmental agencies,
including the department of transportation and the Ohio rail
development commission.
(C)
Any loan made pursuant to this section shall be evidenced by a loan
agreement, which shall contain such terms as the director determines
necessary or appropriate, including performance measures and
reporting requirements. The director may take actions necessary or
appropriate to collect or otherwise deal with any loan made under
this section, including requiring a loan recipient to repay the
amount of the loan plus interest at a rate of three per cent above
the federal short term interest rate or any other rate determined by
the director.
Sec.
166.27.
(A)
As used in this section, "minority" has the same meaning as
in section 184.17 of the Revised Code, except that the individual
must be a resident of this state. The term also includes an
economically disadvantaged individual who is a resident of this
state.
(B)
The director of
housing
and
development
shall conduct outreach activities in Ohio that seek to include
minorities in the loan program for logistics and distribution
projects established under section 166.25 of the Revised Code. The
outreach activities shall include the following, when appropriate:
(1)
Identifying and partnering with historically black colleges and
universities;
(2)
Working with all institutions of higher education in the state to
support minority faculty and students involved in logistics and
distribution fields;
(3)
Developing a plan to contact by telephone minority-owned businesses
and entrepreneurs and other economically disadvantaged businesses to
notify them of opportunities to participate in the loan program for
logistics and distribution projects;
(4)
Identifying minority professional and technical trade associations
and economic development assistance organizations and notifying them
of the loan program for logistics and distribution projects;
(5)
Partnering with regional councils to foster local efforts to support
minority-owned businesses or otherwise identify networks of
minority-owned businesses, entrepreneurs, and individuals operating
locally;
(6)
Identifying minority firms and notifying them of the opportunities
that exist within the investment community, including the Ohio
venture capital authority created under section 150.02 of the Revised
Code.
(C)
The director shall publish an annual report that includes all of the
following:
(1)
Details of loans awarded for logistics and distribution projects;
(2)
The status of loan recipients' projects funded in previous years;
(3)
The amount of loans awarded for projects in economically distressed
areas, and if possible to ascertain, the impact of the loans to those
areas.
(D)
To the extent possible, outreach activities described in this section
shall be conducted in conjunction with the EDGE program created in
section 122.922 of the Revised Code.
Sec.
167.02.
(A)
Membership in the regional council shall be the counties, municipal
corporations, townships, special districts, school districts, and
other political subdivisions entering into the agreement establishing
the council or admitted to membership subsequently pursuant to the
agreement establishing the council or the bylaws of the council.
Representation on the council may be in the manner as provided in the
agreement establishing the council.
(B)
If the agreement establishing the council does not set forth the
manner for determining representation on the council such
representation shall consist of one representative from each county,
municipal corporation, township, special district, school district,
or other political subdivision entering into the agreement, or
subsequently admitted to membership in the council. The
representative from each member county, municipal corporation,
township, special district, school district, or other political
subdivision shall be elected chief executive thereof, or, if such
county, municipal corporation, township, special district, school
district, or other political subdivision does not have an elected
chief executive, a member of its governing body chosen by such body
to be its representative.
(C)
Records containing the names of the political subdivisions that are
members of a regional council of governments or the names of the
representatives from those political subdivisions who serve on the
council are public records within the meaning of section 149.43 of
the Revised Code, and those names are not considered to be trade
secrets under section 1333.61 of the Revised Code.
(D)
The director of
housing
and
development
services
shall
assist the council in securing the cooperation of all appropriate
agencies of the state or of the United States to aid in promoting the
orderly growth and development of the area, solving the problems of
local government, and discharging the responsibilities and duties of
local government in the most efficient possible manner.
(E)
Any county, municipal corporation, township, special district, school
district, or other political subdivision which has become a member of
the council may withdraw by formal action of its governing board and
upon sixty days notice to council after such action, or in the manner
provided in the agreement establishing the council, provided no such
procedure relative to withdrawals in the agreement establishing the
council shall require the political subdivision desiring to withdraw
to retain its membership in the council for a period in excess of two
years.
Sec.
169.05.
(A)
Every holder required to file a report under section 169.03 of the
Revised Code shall, at the time of filing, pay to the director of
commerce ten per cent of the aggregate amount of unclaimed funds as
shown on the report, except for aggregate amounts of fifty dollars or
less in which case one hundred per cent shall be paid. The funds may
be deposited by the director in the state treasury to the credit of
the unclaimed funds trust fund, which is hereby created, or placed
with a financial organization. Any interest earned on money in the
trust fund shall be credited to the trust fund. The remainder of the
aggregate amount of unclaimed funds as shown on the report, plus
earnings accrued to date of payment to the director, shall, at the
option of the director, be retained by the holder or paid to the
director for deposit as agent for the mortgage funds with a financial
organization as defined in section 169.01 of the Revised Code, with
the funds to be in income-bearing accounts to the credit of the
mortgage funds, or the holder may enter into an agreement with the
director specifying the obligations of the United States in which
funds are to be invested, and agree to pay the interest on the
obligations to the state. Holders retaining any funds not in
obligations of the United States shall enter into an agreement with
the director specifying the classification of income-bearing account
in which the funds will be held and pay the state interest on the
funds at a rate equal to the prevailing market rate for similar
funds. Moneys that the holder is required to pay to the director
rather than to retain may be deposited with the treasurer of state,
or placed with a financial organization.
Securities
and other intangible property transferred to the director shall,
within a reasonable time, be converted to cash and the proceeds
deposited as provided for other funds.
One-half
of the funds evidenced by agreements, in income-bearing accounts, or
on deposit with the treasurer of state shall be allocated on the
records of the director to the mortgage insurance fund created by
section 122.561 of the Revised Code. Out of the remaining half, after
allocation of sufficient moneys to the minority business bonding fund
to meet the provisions of division (B) of this section, the remainder
shall be allocated on the records of the director to the housing
development fund created by division (A) of section 175.11 of the
Revised Code.
(B)
The director shall serve as agent for the director of
housing
and
development
and as agent for the Ohio housing finance agency in making deposits
and withdrawals and maintaining records pertaining to the minority
business bonding fund created by section 122.88 of the Revised Code,
the mortgage insurance fund, and the housing development fund created
by section 175.11 of the Revised Code. Funds from the mortgage
insurance fund are available to the director of
housing
and
development
when those funds are to be disbursed to prevent or cure, or upon the
occurrence of, a default of a mortgage insured pursuant to section
122.451 of the Revised Code. Funds from the housing development fund
are available upon request to the Ohio housing finance agency, in an
amount not to exceed the funds allocated on the records of the
director, for the purposes of section 175.05 of the Revised Code.
Funds from the minority business bonding fund are available to the
director of
housing
and
development
upon request to pay obligations on bonds the director writes pursuant
to section 122.88 of the Revised Code; except that, unless the
general assembly authorizes additional amounts, the total maximum
amount of moneys that may be allocated to the minority business
bonding fund under this division is ten million dollars.
When
funds are to be disbursed, the appropriate agency shall call upon the
director to transfer the necessary funds to it. The director shall
first withdraw the funds paid by the holders and deposited with the
treasurer of state or in a financial institution as agent for the
funds. Whenever these funds are inadequate to meet the request, the
director shall provide for a withdrawal of funds, within a reasonable
time and in the amount necessary to meet the request, from financial
institutions in which the funds were retained or placed by a holder
and from other holders who have retained funds, in an equitable
manner as the director prescribes. In the event that the amount to be
withdrawn from any one holder is less than five hundred dollars, the
amount to be withdrawn is at the director's discretion. The director
shall then transfer to the agency the amount of funds requested.
Funds
deposited in the unclaimed funds trust fund are subject to call by
the director when necessary to pay claims the director allows under
section 169.08 of the Revised Code, in accordance with the director's
rules, to defray the necessary costs of making publications this
chapter requires and to pay other operating and administrative
expenses the department of commerce incurs in the administration and
enforcement of this chapter.
The
unclaimed funds trust fund shall be assessed a proportionate share of
the administrative costs of the department of commerce in accordance
with procedures the director of commerce prescribes. The assessment
shall be paid from the unclaimed funds trust fund to the division of
administration fund.
(C)
Earnings on the accounts in financial organizations to the credit of
the mortgage funds shall, at the option of the financial
organization, be credited to the accounts at times and at rates as
earnings are paid on other accounts of the same classification held
in the financial organization or paid to the director. The director
shall be notified annually, and at other times as the director may
request, of the amount of the earnings credited to the accounts.
Interest on unclaimed funds a holder retains shall be paid to the
director or credited as specified in the agreement under which the
organization retains the funds. Interest payable to the director
under an agreement to invest unclaimed funds in income-bearing
accounts or obligations of the United States shall be paid annually
by the holder to the director. Any earnings or interest the director
receives under this division shall be deposited in and credited to
the mortgage funds.
Sec.
173.08.
(A)
The resident services coordinator program is established in the
department of aging to fund resident services coordinators. The
coordinators shall provide information to low-income and
special-needs tenants, including the elderly, who live in financially
assisted rental housing complexes, and assist those tenants in
identifying and obtaining community and program services and other
benefits for which they are eligible.
(B)
The resident services coordinator program fund is hereby created in
the state treasury to support the resident services coordinator
program established pursuant to this section. The fund consists of
all moneys the department of
housing
and
development
sets aside pursuant to division (A)(3) of section 174.02 of the
Revised Code and moneys the general assembly appropriates to the
fund.
Sec.
174.01.
As
used in this chapter:
(A)
"Financial assistance" means grants, loans, loan
guarantees, an equity position in a project, or loan subsidies.
(B)
"Grant" means funding the department of
housing
and
development
or the Ohio housing finance agency provides for which the relevant
agency does not require repayment.
(C)
"Housing" means housing for owner-occupancy and multifamily
rental housing.
(D)
"Housing for owner-occupancy" means housing that is
intended for occupancy by an owner as a principal residence. "Housing
for owner-occupancy" may be any type of structure and may be
owned in any type of ownership.
(E)
"Housing trust fund" means the low- and moderate-income
housing trust fund created and administered pursuant to Chapter 174.
of the Revised Code.
(F)
"Lending institution" means any financial institution
qualified to conduct business in this state, a subsidiary corporation
that is wholly owned by a financial institution qualified to conduct
business in this state, and a mortgage lender whose regular business
is originating, servicing, or brokering real estate loans and who is
qualified to do business in this state.
(G)
"Loan" means any extension of credit or other form of
financing or indebtedness directly or indirectly to a borrower with
the expectation that it will be repaid in accordance with the terms
of the underlying loan agreement or other pertinent document. "Loan"
includes financing extended to lending institutions and indebtedness
purchased from lending institutions.
(H)
"Loan guarantee" means any agreement in favor of a lending
institution or other lender in which the credit and resources of the
housing trust fund are pledged to secure the payment or collection of
financing extended to a borrower for the acquisition, construction,
improvement, rehabilitation or preservation of housing, or to
refinance any financing previously extended for those purposes by any
lender.
(I)
"Loan subsidy" means any deposit of funds into a lending
institution with the authorization or direction that the income or
revenues the deposit earns, or could have earned at competitive
rates, be applied directly or indirectly to the benefit of housing
assistance or financial assistance.
(J)
"Low- and moderate-income persons" means individuals and
families who qualify as low- and moderate-income persons pursuant to
guidelines the department establishes.
(K)
"Multifamily rental housing" means multiple unit housing
intended for rental occupancy.
(L)
"Nonprofit organization" means a nonprofit organization in
good standing and qualified to conduct business in this state
including any corporation whose members are members of a metropolitan
housing authority.
Sec.
174.02.
(A)
The low- and moderate-income housing trust fund is hereby created in
the state treasury. The fund consists of all appropriations made to
the fund, housing trust fund fees collected by county recorders
pursuant to section 317.36 of the Revised Code and deposited into the
fund pursuant to section 319.63 of the Revised Code, and all grants,
gifts, loan repayments, and contributions of money made from any
source to the department of
housing
and
development
for deposit in the fund. All investment earnings of the fund shall be
credited to the fund. The director of
housing
and
development
shall allocate a portion of the money in the fund to an account of
the Ohio housing finance agency. The department shall administer the
fund. The Ohio housing finance agency shall use money allocated to it
for implementing and administering its programs and duties under
sections 174.03 and 174.05 of the Revised Code, and the department
shall use the remaining money in the fund for implementing and
administering its programs and duties under sections 174.03 to 174.06
of the Revised Code. Use of all money drawn from the fund is subject
to the following restrictions:
(1)(a)
Not more than five per cent of the current year appropriation
authority for the fund shall be allocated between grants to community
development corporations for the community development corporation
grant program and grants and loans to the Ohio community development
finance fund, a private nonprofit corporation.
(b)
In any year in which the amount in the fund exceeds one hundred
thousand dollars and at least that much is allocated for the uses
described in this section, not less than one hundred thousand dollars
shall be used to provide training, technical assistance, and capacity
building assistance to nonprofit development organizations.
(2)
Not more than ten per cent of any current year appropriation
authority for the fund shall be used for the emergency shelter
housing grants program to make grants to private, nonprofit
organizations and municipal corporations, counties, and townships for
emergency shelter housing for the homeless and emergency shelter
facilities serving unaccompanied youth seventeen years of age and
younger. The grants shall be distributed pursuant to rules the
director adopts and qualify as matching funds for funds obtained
pursuant to the McKinney Act, 101 Stat. 85 (1987), 42 U.S.C.A. 11371
to 11378.
(3)
In any fiscal year in which the amount in the fund exceeds the amount
awarded pursuant to division (A)(1)(b) of this section by at least
two hundred fifty thousand dollars, at least two hundred fifty
thousand dollars from the fund shall be provided to the department of
aging for the resident services coordinator program as established in
section 173.08 of the Revised Code.
(4)
Of all current year appropriation authority for the fund, not more
than five per cent shall be used for administration.
(5)
Not less than forty-five per cent of the funds awarded during any one
fiscal year shall be for grants and loans to nonprofit organizations
under section 174.03 of the Revised Code.
(6)
Not less than fifty per cent of the funds awarded during any one
fiscal year, excluding the amounts awarded pursuant to divisions
(A)(1), (2), and (7) of this section, shall be for grants and loans
for activities that provide housing and housing assistance to
families and individuals in rural areas and small cities that are not
eligible to participate as a participating jurisdiction under the
"HOME Investment Partnerships Act," 104 Stat. 4094 (1990),
42 U.S.C. 12701 note, 12721.
(7)
No money in the fund shall be used to pay for any legal services
other than the usual and customary legal services associated with the
acquisition of housing.
(8)
Money in the fund may be used as matching money for federal funds
received by the state, counties, municipal corporations, and
townships for the activities listed in section 174.03 of the Revised
Code.
(B)
If, after the second quarter of any year, it appears to the director
that the full amount of the money in the fund designated in that year
for activities that provide housing and housing assistance to
families and individuals in rural areas and small cities under
division (A) of this section will not be used for that purpose, the
director may reallocate all or a portion of that amount for other
housing activities. In determining whether or how to reallocate money
under this division, the director may consult with and shall receive
advice from the housing trust fund advisory committee.
Sec.
174.03.
(A)
The department of
housing
and
development
and the Ohio housing finance agency shall each develop programs under
which, in accordance with rules adopted under this section, they may
make grants, loans, loan guarantees, and loan subsidies to counties,
municipal corporations, townships, local housing authorities, and
nonprofit organizations and may make loans, loan guarantees, and loan
subsidies to private developers and private lenders to assist in
activities that provide housing and housing assistance for
specifically targeted low- and moderate-income families and
individuals. There is no minimum housing project size for awards
under this division for any project that is developed for a special
needs population and that is supported by a social service agency
where the housing project is located. Activities for which grants,
loans, loan guarantees, and loan subsidies may be made under this
section include all of the following:
(1)
Acquiring, financing, constructing, leasing, rehabilitating,
remodeling, improving, and equipping publicly or privately owned
housing;
(2)
Providing supportive services related to housing and the homeless,
including housing counseling. Not more than twenty per cent of the
current year appropriation authority for the low- and moderate-income
housing trust fund that remains after the award of funds made
pursuant to divisions (A)(1) and
(A)
(2)
of section 174.02 of the Revised Code, shall be awarded in any fiscal
year for supportive services.
(3)
Providing rental assistance payments or other project operating
subsidies that lower tenant rents;
(4)
Improving the quality of life of tenants by providing education for
tenants and residents of manufactured home communities regarding
their rights and responsibilities, planning and implementing
activities designed to improve conflict resolution and the capacity
of tenants to negotiate and mediate with landlords, and developing
tenant and resident councils and organizations;
(5)
Promoting capacity building initiatives related to the creation of
county housing trust funds.
(B)
Grants, loans, loan guarantees, and loan subsidies may be made to
counties, municipal corporations, townships, and nonprofit
organizations for the additional purposes of providing technical
assistance, design and finance services and consultation, and payment
of pre-development and administrative costs related to any of the
activities listed above.
(C)
In developing programs under this section, the department and the
agency shall invite, accept, and consider public comment, and
recommendations from the housing trust fund advisory committee
created under section 174.06 of the Revised Code, on how the programs
should be designed to most effectively benefit low- and
moderate-income families and individuals. The programs developed
under this section shall respond collectively to housing and housing
assistance needs of low- and moderate-income families and individuals
statewide.
(D)
The department and the agency, in accordance with Chapter 119. of the
Revised Code, shall each adopt rules to administer programs developed
under this section. The rules shall prescribe procedures and forms
that counties, municipal corporations, townships, local housing
authorities, and nonprofit organizations shall use in applying for
grants, loans, loan guarantees, and loan subsidies and that private
developers and private lenders shall use in applying for loans, loan
guarantees, and loan subsidies; eligibility criteria for the receipt
of funds; procedures for reviewing and granting or denying
applications; procedures for paying out funds; conditions on the use
of funds; procedures for monitoring the use of funds; and procedures
under which a recipient shall be required to repay funds that are
improperly used. The rules shall do both of the following:
(1)
Require each recipient of a grant or loan made from the low- and
moderate-income housing trust fund for activities that provide, or
assist in providing, a rental housing project, to reasonably ensure
that the rental housing project will remain affordable to those
families and individuals targeted for the rental housing project for
the useful life of the rental housing project or for thirty years,
whichever is longer;
(2)
Require each recipient of a grant or loan made from the low- and
moderate-income housing trust fund for activities that provide, or
assist in providing, a housing project to prepare and implement a
plan to reasonably assist any families and individuals displaced by
the housing project in obtaining decent affordable housing.
(E)
In prescribing eligibility criteria and conditions for the use of
funds, neither the department nor the agency is limited to the
criteria and conditions specified in this section and each may
prescribe additional eligibility criteria and conditions that relate
to the purposes for which grants, loans, loan guarantees, and loan
subsidies may be made. However, the department and agency are limited
by the following specifically targeted low- and moderate-income
guidelines:
(1)
Not less than seventy-five per cent of the money granted and loaned
under this section in any fiscal year shall be for activities that
provide affordable housing and housing assistance to families and
individuals whose incomes are equal to or less than fifty per cent of
the median income for the county in which they live, as determined by
the department under section 174.04 of the Revised Code.
(2)
Any money granted and loaned under this section in any fiscal year
that is not granted or loaned pursuant to division (F)(1) of this
section shall be for activities that provide affordable housing and
housing assistance to families and individuals whose incomes are
equal to or less than eighty per cent of the median income for the
county in which they live, as determined by the department under
section 174.04 of the Revised Code.
(F)
In making grants, loans, loan guarantees, and loan subsidies under
this section, the department and the agency shall give preference to
viable projects and activities that benefit those families and
individuals whose incomes are equal to or less than thirty-five per
cent of the median income for the county in which they live, as
determined by the department under section 174.04 of the Revised
Code.
(G)
The department and the agency shall monitor the programs developed
under this section to ensure that money granted and loaned under this
section is not used in a manner that violates division (H) of section
4112.02 of the Revised Code or discriminates against families with
children.
Sec.
174.04.
(A)
The department of
housing
and
development
shall make an annual determination of the median income for persons
in each county.
(B)
The director of
housing
and
development
shall determine appropriate income limits for identifying or
classifying low- and moderate-income persons for the purposes of
sections 174.01 to 174.07 of the Revised Code. In making the
determination, the director shall take into consideration the amount
of income available for housing, family size, the cost and condition
of available housing, ability to pay the amounts the private market
charges for decent, safe, and sanitary housing without federal
subsidy or state assistance, and the income eligibility standards of
federal programs. Income limits may vary from area to area within the
state.
Sec.
174.05.
(A)
Annually, the department of
housing
and
development
shall submit a report to the president of the senate and the speaker
of the house of representatives describing the activities of the
department under sections 174.01 to 174.07 of the Revised Code during
the previous state fiscal year.
(B)
Annually, the Ohio housing finance agency shall submit a report to
the president of the senate and the speaker of the house of
representatives describing the activities of the agency under
sections 174.02, 174.03, and 174.05 of the Revised Code during the
previous state fiscal year.
Sec.
174.06.
(A)
There is hereby created the housing trust fund advisory committee.
The committee consists of the following
seven
:
(1)
Seven
members,
appointed by the governor, with advice and consent of the
Senate
senate
,
who possess knowledge and experience with respect to the housing
needs of low- and moderate-income persons:
(1)
(a)
One
member to represent lenders;
(2)
(b)
One
member to represent affordable housing developers;
(3)
(c)
One
member to represent organizations working to address the housing and
other needs of homeless Ohioans;
(4)
(d)
Two
members to represent counties or other local government entities;
(5)
(e)
One
member to represent real estate brokers licensed under Chapter 4735.
of the Revised Code
.
;
(6)
(f)
A
county recorder.
(2)
Two members of the senate, appointed by the president of the senate.
(3)
Two members of the house of representatives, appointed by the speaker
of the house of representatives.
(B)(1)
Terms of office
for
members appointed by the governor
are
for
four
years, with each term ending on the same day of the same month as did
the term that it succeeds.
Each
legislative member shall serve for the biennium in which the member
was appointed by the speaker of the house of representatives or the
president of the senate, ending on the thirty-first day of December
of each even-numbered year.
(2)
Each
member shall hold office from the date of appointment until the end
of the term for which the member was appointed. Vacancies shall be
filled in the manner prescribed for the original appointment. A
member appointed to fill a vacancy occurring prior to the expiration
of a term shall hold office for the remainder of that term. A member
shall continue in office subsequent to the expiration of a term until
a successor takes office or until a period of sixty days has elapsed,
whichever occurs first.
(2)
(3)
The
governor may remove a member
the
governor appointed
for
misfeasance, malfeasance, or willful neglect of duty.
Each legislative member serves at the pleasure of the member's
appointing authority.
(C)(1)
The committee shall select a chairperson from among its members. The
committee shall meet at least once each calendar year and upon the
call of the chair. Members of the committee serve without
compensation, but shall be reimbursed for reasonable and necessary
expenses incurred in the discharge of duties.
(2)
The department of
housing
and
development
shall provide the committee with a meeting place, supplies, and staff
assistance as the committee requests.
(D)
The committee shall assist the department and the Ohio housing
finance agency in defining housing needs and priorities, recommend to
the department and agency at least annually how the programs
developed under section 174.02 of the Revised Code should be designed
to most effectively benefit low- and moderate-income persons,
consider an allocation of funds for projects of fifteen units or
less, and advise the director of
housing
and
development
on whether and how to reallocate money in the low- and
moderate-income housing trust fund under division (B) of section
174.02 of the Revised Code.
Sec.
174.07.
The
department of
housing
and
development,
on its own and on the behalf of the Ohio housing finance agency and
the Ohio department of aging, shall obtain controlling board approval
prior to making any grant, loan, loan guarantee, or loan subsidy
greater than fifty thousand dollars from or allocated from the low-
and moderate-income housing trust fund.
Sec.
175.03.
(A)(1)
The Ohio housing finance agency consists of
eleven
fifteen
voting
members and four nonvoting members. The governor, with the advice and
consent of the senate, shall appoint nine of the voting members.
The speaker of the house of representatives shall appoint two of the
voting members from among the members of the house of
representatives. The president of the senate shall appoint two of the
voting members from among the members of the senate.
The other two voting members are the director of commerce and the
director of
housing
and
development
or their respective designees. The four nonvoting members shall be
two members of the house of representatives, one from each major
political party, to be appointed by the speaker of the house of
representatives, and two members of the senate, one from each major
political party, to be appointed by the president of the senate.
(2)
The governor shall appoint one member with experience in residential
housing construction; one with experience in residential housing
mortgage lending, loan servicing, or brokering at an institution
insured by the federal deposit insurance corporation; one with
experience in the licensed residential housing brokerage business;
one with experience with the housing needs of senior citizens; one
with a background in labor representation in the construction
industry; one to represent the interests of nonprofit multifamily
housing development organizations; one to represent the interests of
for-profit multifamily housing development organizations; and two who
are public members.
(3)
The governor shall receive recommendations from the Ohio housing
council for appointees to represent the interests of nonprofit
multifamily housing development organizations and for-profit
multifamily housing development organizations.
(4)
Not more than six of the
appointed
voting
members of the agency
appointed
by the governor
may
be of the same political party.
(B)(1)
Of
the initial appointments the governor makes, one member representing
the public has an initial term ending January 31, 2010, the other
member representing the public has an initial term ending January 31,
2008, the member with a background in labor representation in the
construction industry has an initial term ending January 31, 2011,
the member with experience in residential housing mortgage lending,
loan servicing, or brokering has an initial term ending January 31,
2008, the member with experience with the housing needs of senior
citizens has an initial term ending January 31, 2006, the member
representing the interests of nonprofit multifamily housing
development organizations has an initial term ending January 31,
2007, the member representing the interests of for-profit multifamily
housing development organizations has an initial term ending January
31, 2006, and the member with experience in residential housing
construction and the member with experience in licensed residential
housing brokerage each has an initial term ending January 31, 2009.
Thereafter, each
Each
voting member
appointed
voting
member
by
the governor
shall
serve for a term of six years with each term ending on the
thirty-first day of January, six years following the termination date
of the term it succeeds.
Each
legislative member shall serve for the biennium in which the member
was appointed by the speaker of the house of representatives or the
president of the senate, ending on the thirty-first day of December
of each even-numbered year.
There
is no limit on the number of terms a member may serve.
(2)
Each appointed voting member shall hold office from the date of
appointment until the end of the term for which the member is
appointed. Each nonvoting member shall hold office until the end of
that member's term as a member of the general assembly. Any member
appointed to fill a vacancy occurring prior to the expiration of a
term continues in office for the remainder of that term. Any
appointed member shall continue in office subsequent to the
expiration date of the member's term until the member's successor
takes office or until sixty days have elapsed, whichever occurs
first.
(3)
The governor may remove
an
any
voting member the governor
appointed
voting
member from office
for
misfeasance, nonfeasance, or malfeasance in office. The speaker of
the house of representatives may remove a member that is a member of
the house of representatives, and the president of the senate may
remove a member that is a senator.
Each legislative member serves at the pleasure of the member's
appointing authority.
(C)(1)
Except as otherwise provided in this section, members and agency
employees shall comply with Chapter 102. and sections 2921.42 and
2921.43 of the Revised Code.
(2)
An agency member who is a director, officer, employee, or owner of a
lending institution is not in violation of Chapter 102. and is not
subject to section 2921.42 of the Revised Code with respect to a loan
to an applicant from the lending institution or a contract between
the agency and the lending institution for the purchase,
administration, or servicing of loans if the member abstains from
participation in any matter that affects the interests of the
member's lending institution.
(3)
An agency member who represents multifamily housing interests is not
in violation of division (D) or (E) of section 102.03 or division (A)
of section 2921.42 of the Revised Code in regard to a contract the
agency enters into if both of the following apply:
(a)
The contract is entered into for a loan, grant, or participation in a
program the agency administers or funds and the contract is awarded
pursuant to rules or guidelines the agency adopts.
(b)
The member does not participate in the discussion or vote on the
contract if the contract secures a grant or loan that directly
benefits the member, a family member, or a business associate of the
member.
(4)(a)
Each
appointed
voting
agency member
appointed by the governor
shall receive compensation at the rate of two hundred fifty dollars
per agency meeting attended in person, not to exceed a maximum of
four thousand dollars per year.
(b)
The compensation rate for
appointed
voting
members
appointed
by the governor
applies
until six years after July 1, 2005, at which time the members may
increase the compensation for members who are appointed or
reappointed after that time.
All
(c)
All
voting
members are entitled to reimbursement in accordance with section
126.31 of the Revised Code for expenses incurred in the discharge of
official duties.
Sec.
175.04.
(A)
The governor shall appoint a chairperson from among the voting
members. The agency members shall elect a voting member as
vice-chairperson. The agency members may appoint other officers, who
need not be members of the agency, as the agency deems necessary.
(B)
Six
Eight
voting
members of the agency constitute a quorum and the affirmative vote of
six
eight
voting
members is necessary for any action the agency takes. No vacancy in
agency membership impairs the right of a quorum to exercise all of
the agency's rights and perform all the agency's duties. Agency
meetings may be held at any place within the state. Meetings shall
comply with section 121.22 of the Revised Code.
(C)
The agency shall maintain accounting records in accordance with
generally accepted accounting principals and other required
accounting standards.
(D)
The agency shall develop policies and guidelines for the
administration of its programs and annually shall conduct at least
one public hearing to obtain input from any interested party
regarding the administration of its programs. The hearing shall be
held at a time and place as the agency determines and when a quorum
of the agency is present.
(E)
The agency shall appoint committees and subcommittees comprised of
members of the agency to handle matters it deems appropriate.
(1)
The agency shall adopt an annual plan to address this state's housing
needs. The agency shall appoint an annual plan committee to develop
the plan and present it to the agency for consideration.
(2)
The annual plan committee shall select an advisory board from a list
of interested individuals the executive director provides or on its
own recommendation. The advisory board shall provide input on the
plan at committee meetings prior to the annual public hearing. At the
public hearing, the committee shall discuss advisory board comments.
The advisory board may include, but is not limited to, persons who
represent state agencies, local governments, public corporations,
nonprofit organizations, community development corporations, housing
advocacy organizations for low- and moderate-income persons,
realtors, syndicators, investors, lending institutions as recommended
by a statewide banking organization, and other entities participating
in the agency's programs.
Each
agency program that allows for loans to be made to finance housing
for owner occupancy that benefits other than low- and moderate-income
households, or for loans to be made to individuals under bonds issued
pursuant to division (B) of section 175.08 of the Revised Code, shall
be presented to the advisory board and included in the annual plan as
approved by the agency before the program's implementation.
(F)
The agency shall prepare an annual financial report describing its
activities during the reporting year and submit that report in
accordance with division (H) of this section and to the governor, the
speaker of the house of representatives, and the president of the
senate within three months after the end of the reporting year. The
report shall include the agency's audited financial statements,
prepared in accordance with generally accepted accounting principles
and appropriate accounting standards.
(G)
The agency shall prepare an annual report of its programs describing
how the programs have met this state's housing needs. The agency
shall submit the report in accordance with division (H) of this
section and to the governor, the speaker of the house of
representatives, and the president of the senate within three months
after the end of the reporting year.
(H)(1)
The agency shall submit, within a time frame agreed to by the agency
and the chairs, the annual financial report described in division (F)
of this section and the annual report of programs described in
division (G) of this section to the chairs of the committees dealing
with housing issues in the house of representatives and the senate.
(2)
Within forty-five days of issuance of the annual financial report,
the agency's executive director shall request to appear in person
before the committees described in division (H)(1) of this section to
testify in regard to the financial report and the report of programs.
The testimony shall include each of the following:
(a)
An overview of the annual plan adopted pursuant to division (E)(1) of
this section;
(b)
An evaluation of whether the objectives in the annual plan were met
through a comparison of the annual plan with the annual financial
report and report of programs;
(c)
A complete listing by award and amount of all business and
contractual relationships in excess of one hundred thousand dollars
between the agency and other entities and organizations that
participated in agency programs during the fiscal year reported by
the agency's annual financial report and report of programs;
(d)
A complete listing by award and amount of the low-income housing tax
credit syndication and direct investor entities for projects that
received tax credit reservations and IRS Form 8609 during the fiscal
year.
Sec.
175.06.
(A)
The Ohio housing finance agency shall do all of the following related
to carrying out its programs:
(1)
Upon the governor's designation, serve as the housing credit agency
for the state and perform all responsibilities of a housing credit
agency pursuant to Section 42 of the Internal Revenue Code and
similar applicable laws;
(2)
Require that housing that benefits from the agency's assistance be
available without discrimination in accordance with Chapter 4112. of
the Revised Code and applicable provisions of federal law;
(3)
Demonstrate measurable and objective transparency;
(4)
Efficiently award funding to maximize affordable housing production
using cost-effective strategies;
(5)
Encourage national equity investment in low-income housing tax credit
projects;
(6)
Utilize resources to provide competitive homebuyer programs to serve
low- and moderate-income persons.
(B)
The Ohio housing finance agency may do any of the following related
to carrying out its programs:
(1)
Issue bonds, provide security for assets, make deposits, purchase or
make loans, provide economic incentives for the development of
housing, and provide financial assistance for emergency housing;
(2)
Serve as a public housing agency and contract with the United States
department of housing and urban development to administer the
department's rent subsidy program, housing subsidy program, and
monitoring programs for low- and moderate-income persons. The agency
shall ensure that any contract into which it enters provides for
sufficient compensation to the agency for its services.
(3)
Develop and administer programs under which the agency uses moneys
from the housing trust fund as allocated by the department of
housing
and
development
to extend financial assistance pursuant to sections 174.01 to 174.07
of the Revised Code;
(4)
Make financial assistance available;
(5)
Guarantee and commit to guarantee the repayment of financing that a
lending institution extends for housing, guaranteeing that debt with
any of the agency's reserve funds not raised by taxation and not
otherwise obligated for debt service, including the housing
development fund established pursuant to section 175.11 of the
Revised Code and any fund created under division (B)(14) of section
175.05 of the Revised Code;
(6)
Make, commit to make, and participate in making financial assistance,
including federally insured mortgage loans, available to finance the
construction and rehabilitation of housing or to refinance existing
housing;
(7)
Invest in, purchase, and take from lenders the assignment of notes or
other evidence of debt including federally insured mortgage loans, or
participate with lenders in notes and loans for homeownership,
development, or refinancing of housing;
(8)
Sell at public or private sale any mortgage or mortgage backed
securities the agency holds;
(9)
Issue bonds to carry out the agency's purposes as set forth in this
chapter;
(10)
Extend or otherwise make available housing assistance on terms the
agency determines.
(C)
The Ohio housing finance agency may issue bonds and extend financial
assistance from any fund the agency administers for the prompt
replacement, repair, or refinancing of damaged housing if both of the
following apply:
(1)
The governor declares that a state of emergency exists with respect
to a county, region, or political subdivision of this state, or
declares that a county, region, or political subdivision has
experienced a disaster as defined in section 5502.21 of the Revised
Code.
(2)
The agency determines that the emergency or disaster has
substantially damaged or destroyed housing in the area of the
emergency or disaster.
(D)
The agency shall establish guidelines for extending financial
assistance for emergency housing. The guidelines shall include
eligibility criteria for assistance and the terms and conditions
under which the agency may extend financial assistance.
Sec.
175.15.
The
Ohio housing finance agency and the
Ohio
department
of housing and
development
services
agency
shall
include pregnancy as a priority in its housing assistance programs
and local emergency shelter programs. In consultation with the
Ohio
department
of housing and
development
services agency
,
the Ohio housing finance agency may adopt rules in accordance with
Chapter 119. of the Revised Code that are necessary to implement the
requirements of this section.
Sec.
176.01.
(A)
Any municipal corporation, county, or township may, alone or jointly
with one or more contiguous or overlapping other municipal
corporations, counties, or townships, establish or designate a
housing advisory board.
(B)
The purposes of a housing advisory board are:
(1)
To receive and review comprehensive plans for the development and
maintenance of affordable housing submitted to the housing advisory
board pursuant to division (A)(2) of section 176.04 of the Revised
Code by any such political subdivision it serves;
(2)
To receive and review written descriptions submitted to the housing
advisory board pursuant to division (A)(3) of section 176.04 of the
Revised Code by any subdivision it serves of the purposes to which
such subdivision proposes to apply the proceeds of general
obligations such subdivision proposes to issue or the moneys raised
by taxation that such subdivision proposes to expend pursuant to
Section 16 of Article VIII, Ohio Constitution;
(3)
To advise the subdivisions it serves regarding the plans and
descriptions it receives pursuant to divisions (B)(1) and (2) of this
section; and
(4)
To perform such other advisory functions for any subdivision it
serves related to such subdivision's programs to provide, or assist
in providing, housing as such subdivision may request it to perform.
(C)
Every housing advisory board shall include balanced representation of
each of the following groups located within the political
subdivisions served by the board:
(1)
Institutions that lend money for housing;
(2)
Nonprofit builders and developers of housing;
(3)
For-profit builders and developers of housing;
(4)
For-profit builders and developers of rental housing;
(5)
Real estate brokers licensed under Chapter 4735. of the Revised Code;
(6)
Other persons with professional knowledge regarding local housing
needs and fair housing issues within the subdivisions served by the
board;
(7)
Residents of areas of the subdivisions served by the board that could
receive housing assistance from such subdivisions;
(8)
Any metropolitan housing authority operating within the subdivisions
served by the board;
(9)
The elected officials of the political subdivisions served by the
board;
(10)
Such other groups or individuals that the appointing authority
determines are necessary to provide balanced advice on housing plans
and programs.
(D)
The board of county commissioners shall do one of the following:
(1)
Appoint the members of a county housing advisory board;
(2)
Designate an existing board, commission, or committee of the county
to serve as the county housing advisory board and, if necessary to
achieve the balanced representation required by division (C) of this
section, appoint additional members to serve with or in an advisory
capacity to the existing board, commission, or committee when it
meets as a county housing advisory board.
Subject
to the requirements of division (C) of this section and any
requirements governing membership in an existing county board,
commission, or committee that is designated to serve as the county
housing advisory board, the number of members of a county housing
advisory board and the length of their terms shall be determined by
the board of county commissioners.
(E)
The mayor of a municipal corporation, with the consent of the
legislative authority of the municipal corporation, shall do one of
the following:
(1)
Appoint the members of a municipal corporation housing advisory
board;
(2)
Designate an existing board, commission, or committee of the
municipal corporation to serve as the municipal corporation housing
advisory board and, if necessary to achieve the balanced
representation required by division (C) of this section, appoint
additional members to serve with or in an advisory capacity to the
existing board, commission, or committee when it meets as a municipal
corporation housing advisory board.
Subject
to the requirements of division (C) of this section and any
requirements governing membership in an existing municipal
corporation board, commission, or committee that is designated to
serve as the municipal corporation housing advisory board, the number
of members of the municipal corporation housing board and the length
of their terms shall be determined by the legislative authority of
the municipal corporation.
(F)
The board of township trustees shall do one of the following:
(1)
Appoint the members of a township housing advisory board;
(2)
Designate an existing board, commission, or committee of the township
to serve as the township housing advisory board and, if necessary to
achieve the balanced representation required by division (C) of this
section, appoint additional members to serve with or in an advisory
capacity to the existing board, commission, or committee when it
meets as a township housing advisory board.
Subject
to the requirements of division (C) of this section and any
requirements governing membership in an existing township board,
commission, or committee that is designated to serve as the township
housing advisory board, the number of members of the township
advisory board and the length of their terms shall be determined by
the board of township trustees.
(G)
Whenever any municipal corporation enters into an agreement to use
the services of a county housing advisory board pursuant to section
176.02 of the Revised Code and the municipal corporation has a
population of fifty thousand or greater, the board shall include at
least one member who is a resident of the municipal corporation. The
board of county commissioners shall appoint each such member from a
list of names submitted to the board of county commissioners by the
legislative authority of the municipal corporation to be represented.
(H)
Any housing advisory board established or designated under this
section shall, within thirty days after its first meeting, notify the
department of
housing
and
development
in writing of the formation of the board and of its initial members.
Thereafter, each housing advisory board shall provide to the
department such reports and information regarding the board's
activities as the department may require.
Sec.
176.07.
The
director of
housing
and
development,
in consultation with the public and the housing trust fund advisory
committee created under section 174.06 of the Revised Code, shall
develop regulations applicable to all existing and future state
housing loan, loan guarantee, loan subsidy, and grant programs. The
regulations shall require recipients of financing from state housing
programs, that provide or assist in providing multi-family rental
housing, to do both of the following:
(A)
Reasonably ensure that the multi-family rental housing will be
affordable to those families and individuals targeted for the
multi-family rental housing for the useful life of the multi-family
rental housing or thirty years, whichever is longer;
(B)
Prepare and implement a plan to reasonably assist any families and
individuals displaced by the multi-family housing in obtaining decent
affordable housing.
The
department of
housing
and
development
shall distribute a copy of these regulations to each local housing
advisory board to serve as a guideline for carrying out the
requirements of divisions (D)(2) and (3) of section 176.04 of the
Revised Code.
Sec.
184.01.
(A)
There is hereby created the third frontier commission in the
department of
housing
and
development.
The purpose of the commission is to coordinate and administer science
and technology programs to promote the welfare of the people of the
state and to maximize the economic growth of the state through
expansion of both of the following:
(1)
The state's high technology research and development capabilities;
(2)
The state's product and process innovation and commercialization.
(B)(1)
The commission shall consist of eleven members: the director of
housing
and
development,
the chancellor of higher education, the governor's science and
technology advisor, the chief investment officer of the nonprofit
corporation formed under section 187.01 of the Revised Code, and
seven persons appointed by the governor with the advice and consent
of the senate.
(2)
Of the seven persons appointed by the governor, one shall represent
the central region, which is composed of the counties of Delaware,
Fairfield, Fayette, Franklin, Hocking, Knox, Licking, Logan, Madison,
Marion, Morrow, Perry, Pickaway, Ross, and Union; one shall represent
the west central region, which is composed of the counties of
Champaign, Clark, Darke, Greene, Miami, Montgomery, Preble, and
Shelby; one shall represent the northeast region, which is composed
of the counties of Ashland, Ashtabula, Carroll, Crawford, Columbiana,
Cuyahoga, Erie, Geauga, Holmes, Huron, Lake, Lorain, Mahoning,
Medina, Portage, Richland, Stark, Summit, Trumbull, Tuscarawas, and
Wayne; one shall represent the northwest region, which is composed of
the counties of Allen, Auglaize, Defiance, Fulton, Hancock, Hardin,
Henry, Lucas, Mercer, Ottawa, Paulding, Putnam, Sandusky, Seneca, Van
Wert, Williams, Wood, and Wyandot; one shall represent the southeast
region, which shall represent the counties of Adams, Athens, Belmont,
Coshocton, Gallia, Guernsey, Harrison, Jackson, Jefferson, Lawrence,
Meigs, Monroe, Morgan, Muskingum, Noble, Pike, Scioto, Vinton, and
Washington; one shall represent the southwest region, which is
composed of the counties of Butler, Brown, Clermont, Clinton,
Hamilton, Highland, and Warren; and one shall represent the public at
large. Of the initial appointments, two shall be for one year, two
shall be for two years, and two shall be for three years as assigned
by the governor. Thereafter, appointments shall be for three-year
terms. Members may be reappointed and vacancies shall be filled in
the same manner as appointments. A person must have a background in
business or research in order to be eligible for appointment to the
commission.
(3)
The governor shall select a chairperson from among the members, who
shall serve in that role at the pleasure of the governor. Sections
101.82 to 101.87 of the Revised Code do not apply to the commission.
(C)
The commission shall meet at least once during each quarter of the
calendar year or at the call of the chairperson. A majority of all
members of the commission constitutes a quorum, and no action shall
be taken without the concurrence of a majority of the members.
(D)
The commission shall administer any money that may be appropriated to
it by the general assembly. The commission may use such money for
research and commercialization and for any other purposes that may be
designated by the commission.
(E)
The department 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.
(F)
The attorney general shall serve as the legal representative for the
commission and may appoint other counsel as necessary for that
purpose in accordance with section 109.07 of the Revised Code.
(G)
Members of the commission shall serve without compensation, but shall
receive their reasonable and necessary expenses incurred in the
conduct of commission business.
(H)
Members of the commission shall file financial disclosure statements
described in division (B) of section 102.02 of the Revised Code.
Sec.
184.151.
The
third frontier commission shall conduct public meetings twice each
year at which a representative of the department of
housing
and
development
shall testify regarding the number of applicants for support for
research and development projects and the other information contained
in the most recent report made by the commission under section 184.15
of the Revised Code. The representative shall also testify regarding
the monitoring activities of, and data obtained by, the department
pursuant to section 184.16 of the Revised Code. In addition to oral
testimony, the representative shall provide a written report of all
the information for which testimony is required under this section.
Sec.
184.16.
The
department of
housing
and
development
shall monitor each research and development project receiving support
under section 184.11 of the Revised Code to ensure the following:
(A)
Fiscal accountability, so that the support is used in accordance with
the agreement entered into under section 184.113 of the Revised Code;
(B)
Operating progress, so that the project is managed to achieve the
requirements of the agreement entered into under section 184.113 of
the Revised Code and so that problems may be promptly identified and
remedied;
(C)
Desired outcomes, including job creation and other anticipated
economic impacts.
Sec.
187.01.
As
used in this chapter, "JobsOhio" means the nonprofit
corporation formed under this section, and includes any subsidiary of
that corporation. In any section of law that refers to the nonprofit
corporation formed under this section, reference to the corporation
includes reference to any such subsidiary unless otherwise specified
or clearly appearing from the context.
The
governor is hereby authorized to form a nonprofit corporation, to be
named "JobsOhio," with the purposes of promoting economic
development, job creation, job retention, job training, and the
recruitment of business to this state. Except as otherwise provided
in this chapter, the corporation shall be organized and operated in
accordance with Chapter 1702. of the Revised Code. The governor shall
sign and file articles of incorporation for the corporation with the
secretary of state. The legal existence of the corporation shall
begin upon the filing of the articles.
In
addition to meeting the requirements for articles of incorporation in
Chapter 1702. of the Revised Code, the articles of incorporation for
the nonprofit corporation shall set forth the following:
(A)
The designation of the name of the corporation as JobsOhio;
(B)
The creation of a board of directors consisting of nine directors, to
be appointed by the governor, who satisfy the qualifications
prescribed by section 187.02 of the Revised Code;
(C)
A requirement that the governor make initial appointments to the
board within sixty days after the filing of the articles of
incorporation. Of the initial appointments made to the board, two
shall be for a term ending one year after the date the articles were
filed, two shall be for a term ending two years after the date the
articles were filed, and five shall be for a term ending four years
after the date the articles were filed. The articles shall state
that, following the initial appointments, the governor shall appoint
directors to terms of office of four years, with each term of office
ending on the same day of the same month as did the term that it
succeeds. If any director dies, resigns, or the director's status
changes such that any of the requirements of division (C) of section
187.02 of the Revised Code are no longer met, that director's seat on
the board shall become immediately vacant. The governor shall
forthwith fill the vacancy by appointment for the remainder of the
term of office of the vacated seat.
(D)
A requirement that the governor appoint one director to be
chairperson of the board and procedures for electing directors to
serve as officers of the corporation and members of an executive
committee;
(E)
A provision for the appointment of a chief investment officer of the
corporation by the recommendation of the board and approval of the
governor. The chief investment officer shall serve at the pleasure of
the board and shall have the power to execute contracts, spend
corporation funds, and hire employees on behalf of the corporation.
If the position of chief investment officer becomes vacant for any
reason, the vacancy shall be filled in the same manner as provided in
this division.
(F)
Provisions requiring the board to do all of the following:
(1)
Adopt one or more resolutions providing for compensation of the chief
investment officer;
(2)
Approve an employee compensation plan recommended by the chief
investment officer;
(3)
Approve a contract with the director of
housing
and
development
services
for
the corporation to assist the director and the
department
of housing and
development
services
agency
with
providing services or otherwise carrying out the functions or duties
of the agency, including the operation and management of programs,
offices, divisions, or boards, as may be determined by the director
of
housing
and
development
services
in
consultation with the governor;
(4)
Approve all major contracts for services recommended by the chief
investment officer;
(5)
Establish an annual strategic plan and standards of measure to be
used in evaluating the corporation's success in executing the plan;
(6)
Establish a conflicts of interest policy that, at a minimum, complies
with section 187.06 of the Revised Code;
(7)
Hold a minimum of four board of directors meetings per year at which
a quorum of the board is physically present, and such other meetings,
at which directors' physical presence is not required, as may be
necessary. Meetings at which a quorum of the board is required to be
physically present are subject to divisions (C), (D), and (E) of
section 187.03 of the Revised Code.
(8)
Establish a records retention policy and present the policy, and any
subsequent changes to the policy, at a meeting of the board of
directors at which a quorum of the board is required to be physically
present pursuant to division (F)(7) of this section;
(9)
Adopt standards of conduct for the directors.
(G)
A statement that directors shall not receive any compensation from
the corporation, except that directors may be reimbursed for actual
and necessary expenses incurred in connection with services performed
for the corporation;
(H)
A provision authorizing the board to amend provisions of the
corporation's articles of incorporation or regulations, except
provisions required by this chapter;
(I)
Procedures by which the corporation would be dissolved and by which
all corporation rights and assets would be distributed to the state
or to another corporation organized under this chapter. These
procedures shall incorporate any separate procedures subsequently set
forth in this chapter for the dissolution of the corporation. The
articles shall state that no dissolution shall take effect until the
corporation has made adequate provision for the payment of any
outstanding bonds, notes, or other obligations.
(J)
A provision establishing an audit committee to be comprised of
directors. The articles shall require that the audit committee hire a
firm of independent certified public accountants, selected in
consultation with the auditor of state, to perform, once each year, a
financial audit of the corporation and of any nonprofit entity the
sole member of which is JobsOhio. The articles also shall require all
of the following:
(1)
Commencing with JobsOhio's fiscal year beginning July 1, 2012, the
financial statements to be audited are to be prepared in accordance
with accounting principles and standards set forth in all applicable
pronouncements of the governmental accounting standards board;
(2)
The firm of independent certified public accountants hired is to
conduct a supplemental compliance and control review pursuant to a
written agreement by and among the firm, the auditor of state,
JobsOhio, and any nonprofit entity the sole member of which is
JobsOhio; and
(3)
A copy of each financial audit report and each report of the results
of the compliance and control review are to be provided to the
governor, the auditor of state, the speaker of the house of
representatives, and the president of the senate.
(K)
A provision authorizing a majority of the disinterested directors to
remove a director for misconduct, as that term may be defined in the
articles or regulations of the corporation. The removal of a director
under this division creates a vacancy on the board that the governor
shall fill by appointment for the remainder of the term of office of
the vacated seat.
Sec.
187.03.
(A)
JobsOhio may perform such functions as permitted and shall perform
such duties as prescribed by law and as set forth in any contract
entered into under section 187.04 of the Revised Code, but shall not
be considered a state or public department, agency, office, body,
institution, or instrumentality for purposes of section 1.60 or
Chapter 102., 121., 125., or 149. of the Revised Code. JobsOhio and
its board of directors are not subject to the following sections of
Chapter 1702. of the Revised Code: sections 1702.03, 1702.08,
1702.09, 1702.21, 1702.24, 1702.26, 1702.27, 1702.28, 1702.29,
1702.301, 1702.33, 1702.34, 1702.37, 1702.38, 1702.40 to 1702.52,
1702.521, 1702.54, 1702.57, 1702.58, 1702.59, 1702.60, 1702.80, and
1702.99. Nothing in this division shall be construed to impair the
powers and duties of the Ohio ethics commission described in section
102.06 of the Revised Code to investigate and enforce section 102.02
of the Revised Code with regard to individuals required to file
statements under division (B)(2) of this section.
(B)(1)
Directors and employees of JobsOhio are not employees or officials of
the state and, except as provided in division (B)(2) of this section,
are not subject to Chapter 102., 124., 145., or 4117. of the Revised
Code.
(2)
The chief investment officer, any other officer or employee with
significant administrative, supervisory, contracting, or investment
authority, and any director of JobsOhio shall file, with the Ohio
ethics commission, a financial disclosure statement pursuant to
section 102.02 of the Revised Code that includes, in place of the
information required by divisions (A)(2)(b), (g), (h), and (i) of
that section, the information required by divisions (A) and (B) of
section 102.022 of the Revised Code. The governor shall comply with
all applicable requirements of section 102.02 of the Revised Code.
(3)
Actual or in-kind expenditures for the travel, meals, or lodging of
the governor or of any public official or employee designated by the
governor for the purpose of this division shall not be considered a
violation of section 102.03 of the Revised Code if the expenditures
are made by the corporation, or on behalf of the corporation by any
person, in connection with the governor's performance of official
duties related to JobsOhio. The governor may designate any person,
including a person who is a public official or employee as defined in
section 102.01 of the Revised Code, for the purpose of this division
if such expenditures are made on behalf of the person in connection
with the governor's performance of official duties related to
JobsOhio. A public official or employee so designated by the governor
shall comply with all applicable requirements of section 102.02 of
the Revised Code.
At
the times and frequency agreed to under division (B)(2)(b) of section
187.04 of the Revised Code, beginning in 2012, the corporation shall
file with the department of
housing
and
development
a written report of all such expenditures paid or incurred during the
preceding calendar year. The report shall state the dollar value and
purpose of each expenditure, the date of each expenditure, the name
of the person that paid or incurred each expenditure, and the
location, if any, where services or benefits of an expenditure were
received, provided that any such information that may disclose
proprietary information as defined in division (C) of this section
shall not be included in the report.
(4)
The prohibition applicable to former public officials or employees in
division (A)(1) of section 102.03 of the Revised Code does not apply
to any person appointed to be a director or hired as an employee of
JobsOhio.
(5)
Notwithstanding division (A)(2) of section 145.01 of the Revised
Code, any person who is a former state employee shall no longer be
considered a public employee for purposes of Chapter 145. of the
Revised Code upon commencement of employment with JobsOhio.
(6)
Any director, officer, or employee of JobsOhio may request an
advisory opinion from the Ohio ethics commission with regard to
questions concerning the provisions of sections 102.02 and 102.022 of
the Revised Code to which the person is subject.
(C)
Meetings of the board of directors at which a quorum of the board is
required to be physically present pursuant to division (F) of section
187.01 of the Revised Code shall be open to the public except, by a
majority vote of the directors present at the meeting, such a meeting
may be closed to the public only for one or more of the following
purposes:
(1)
To consider business strategy of the corporation;
(2)
To consider proprietary information belonging to potential applicants
or potential recipients of business recruitment, retention, or
creation incentives. For the purposes of this division, "proprietary
information" means marketing plans, specific business strategy,
production techniques and trade secrets, financial projections, or
personal financial statements of applicants or members of the
applicants' immediate family, including, but not limited to, tax
records or other similar information not open to the public
inspection.
(3)
To consider legal matters, including litigation, in which the
corporation is or may be involved;
(4)
To consider personnel matters related to an individual employee of
the corporation.
(D)
The board of directors shall establish a reasonable method whereby
any person may obtain the time and place of all public meetings
described in division (C) of this section. The method shall provide
that any person, upon request and payment of a reasonable fee, may
obtain reasonable advance notification of all such meetings.
(E)
The board of directors shall promptly prepare, file, and maintain
minutes of all public meetings described in division (C) of this
section.
(F)
Not later than the first day of July of each year, the chief
investment officer of JobsOhio shall prepare and submit a report of
the corporation's activities for the preceding year to the governor,
the speaker and minority leader of the house of representatives, and
the president and minority leader of the senate. The annual report
shall include the following:
(1)
An analysis of the state's economy;
(2)
A description of the structure, operation, and financial status of
the corporation;
(3)
A description of the corporation's strategy to improve the state
economy and the standards of measure used to evaluate its progress;
(4)
An evaluation of the performance of current strategies and major
initiatives;
(5)
An analysis of any statutory or administrative barriers to successful
economic development, business recruitment, and job growth in the
state identified by JobsOhio during the preceding year.
Sec.
187.04.
(A)
The director of
housing
and
development
services
,
as soon as practical after February 18, 2011, shall execute a
contract with JobsOhio for the corporation to assist the director and
the
department
of housing and
development
services
agency
with
providing services or otherwise carrying out the functions or duties
of the agency, including the operation and management of programs,
offices, divisions, or boards, as may be determined by the director
in consultation with the governor. The approval or disapproval of
awards involving public money shall remain functions of the agency.
All contracts for grants, loans, and tax incentives involving public
money shall be between the agency and the recipient and shall be
enforced by the agency. JobsOhio may not execute contracts obligating
the agency for loans, grants, tax credits, or incentive awards
recommended by JobsOhio to the agency. Prior to execution, all
contracts between the director and JobsOhio entered into under this
section that obligate the agency to pay JobsOhio for services
rendered are subject to controlling board approval.
The
term of an initial contract entered into under this section shall not
extend beyond June 30, 2013. Thereafter, the director and JobsOhio
may renew the contract for subsequent fiscal biennia, but at no time
shall a particular contract be effective for longer than a fiscal
biennium of the general assembly.
JobsOhio's
provision of services to the agency as described in this section
shall be pursuant to a contract entered into under this section. If
at any time the director determines that the contract with JobsOhio
may not be renewed for the subsequent fiscal biennium, the director
shall notify JobsOhio of the director's decision not later than one
hundred twenty days prior to the end of the current fiscal biennium.
If the director does not provide such written notice to JobsOhio
prior to one hundred days before the end of the current fiscal
biennium, the contract shall be renewed upon such terms as the
parties may agree, subject to the requirements of this section.
(B)
A contract entered into under this section shall include all of the
following:
(1)
Terms assigning to the corporation the duties of advising and
assisting the director in the director's evaluation of the agency and
the formulation of recommendations under section 187.05 of the
Revised Code;
(2)
Terms designating records created or received by JobsOhio that shall
be made available to the public under the same conditions as are
public records under section 149.43 of the Revised Code. Documents
designated to be made available to the public pursuant to the
contract shall be kept on file with the agency.
Among
records to be designated under this division shall be the following:
(a)
The corporation's federal income tax returns;
(b)
The report of expenditures described in division (B)(3) of section
187.03 of the Revised Code. The records shall be filed with the
agency at such times and frequency as agreed to by the corporation
and the agency, which shall not be less frequently than quarterly.
(c)
The annual total compensation paid to each officer and employee of
the corporation;
(d)
A copy of the report for each financial audit of the corporation and
of each supplemental compliance and control review of the corporation
performed by a firm of independent certified public accountants
pursuant to division (J) of section 187.01 of the Revised Code.
(e)
Records of any fully executed incentive proposals, to be filed
annually;
(f)
Records pertaining to the monitoring of commitments made by incentive
recipients, to be filed annually;
(g)
A copy of the minutes of all public meetings described in division
(C) of section 187.03 of the Revised Code not otherwise closed to the
public.
(3)
The following statement acknowledging that JobsOhio is not acting as
an agent of the state:
"JobsOhio
shall have no power or authority to bind the state or to assume or
create an obligation or responsibility, expressed or implied, on
behalf of the state or in its name, nor shall JobsOhio represent to
any person that it has any such power or authority, except as
expressly provided in this contract."
(C)(1)
Records created by JobsOhio are not public records for the purposes
of Chapter 149. of the Revised Code, regardless of who may have
custody of the records, unless the record is designated to be
available to the public by the contract under division (B)(2) of this
section.
(2)
Records received by JobsOhio from any person or entity that is not
subject to section 149.43 of the Revised Code are not public records
for purposes of Chapter 149. of the Revised Code, regardless of who
may have custody of the records, unless the record is designated to
be available to the public by the contract under division (B)(2) of
this section.
(3)
Records received by JobsOhio from a public office as defined in
section 149.011 of the Revised Code that are not public records under
section 149.43 of the Revised Code when in the custody of the public
office are not public records for the purposes of section 149.43 of
the Revised Code regardless of who has custody of the records.
(4)
Division (B) of section 4701.19 of the Revised Code applies to any
work papers of the firm of independent certified public accountants
engaged to perform the annual financial audit and the supplemental
compliance and control review described in division (J) of section
187.01 of the Revised Code, and to the financial audit report and any
report of the supplemental compliance and control review, unless the
record is designated to be available to the public by the contract
under division (B)(2) of this section.
(D)
Any contract executed under authority of this section shall not
negate, impair, or otherwise adversely affect the obligation of this
state to pay debt charges on securities executed by the director or
issued by the treasurer of state, Ohio public facilities commission,
or any other issuing authority under Chapter 122., 151., 165., or
166. of the Revised Code to fund economic development programs of the
state, or to abide by any pledge or covenant relating to the payment
of those debt charges made in any related proceedings. As used in
this division, "debt charges," "proceedings," and
"securities" have the same meanings as in section 133.01 of
the Revised Code.
(E)
Nothing in this section, other than the requirement of controlling
board approval, shall prohibit the agency from contracting with
JobsOhio to perform any of the following functions:
(1)
Promoting and advocating for the state;
(2)
Making recommendations to the agency;
(3)
Performing research for the agency;
(4)
Establishing and managing programs or offices on behalf of the
agency, by contract;
(5)
Negotiating on behalf of the state.
(F)
Nothing in this section, other than the requirement of controlling
board approval, shall prohibit the agency from compensating JobsOhio
from funds currently appropriated to the agency to perform the
functions described in division (E) of this section.
Sec.
187.05.
The
director of
housing
and
development
services
,
as soon as practical after February 18, 2011, shall, in consultation
with the governor, evaluate all powers, functions, and duties of the
department
of housing and
development
services agency
.
Within six months after February 18, 2011, the director shall submit
a report to the general assembly recommending statutory changes
necessary to improve the functioning and efficiency of the
agency
department
and
to transfer specified powers, functions, and duties of the
agency
department
to
other existing agencies of the state or to JobsOhio, or eliminate
specified powers, functions, or duties. The recommendations shall be
submitted in writing to the speaker and minority leader of the house
of representatives and the president and minority leader of the
senate.
After
submitting the report, the director, in consultation with the
governor, shall continue to evaluate the
agency
department
and
make additional recommendations on such matters to the general
assembly.
Sec.
187.061.
(A)
Each officer and employee of JobsOhio shall do all of the following:
(1)
Sign an ethical conduct statement prescribed by the board of
directors of JobsOhio;
(2)
Complete an annual course or program of study on ethics. The course
or program of study shall be reviewed and approved by the board of
directors.
(3)
Comply with the gift policy prescribed by the board of directors.
(B)
Prior to the renewal of the contract between the director of
housing
and
development
services
and
JobsOhio as described in section 187.04 of the Revised Code, the
board of directors shall submit to the controlling board a
comprehensive review of the ethics policies and procedures that have
been adopted by JobsOhio.
Sec.
191.02.
There
is hereby established the Ohio broadband pole replacement and
undergrounding program within the department of
housing
and
development
to advance the provision of qualifying broadband service access to
residences and businesses in an unserved area by reimbursing certain
costs of pole replacements, mid-span pole installations, and
undergrounding.
The
department shall administer and provide staff assistance for the
program. The department shall be responsible for receiving and
reviewing program applications and for sending completed applications
to the broadband expansion program authority for final review and
award of program reimbursements.
Sec.
191.03.
(A)
The department of
housing
and
development
shall establish an administrative process to award program
reimbursements under the Ohio broadband pole replacement and
undergrounding program according to the provisions of sections 191.03
to 191.45 of the Revised Code.
(B)
The broadband expansion program authority shall award program
reimbursements after reviewing program applications and determining
whether the applications meet the program's requirements for
reimbursement.
Sec.
191.10.
In
accordance with sections 191.10 to 191.45 of the Revised Code, a
provider may submit an application for a program reimbursement under
the Ohio broadband pole replacement and undergrounding program, if
the provider has deployed qualifying broadband infrastructure in an
unserved area and has paid any of the following costs in connection
with the deployment of such broadband infrastructure:
(A)
Pole replacement costs;
(B)
Mid-span pole installation costs;
(C)
Undergrounding costs.
The
application shall be submitted on a form prescribed by the department
of
housing
and
development.
Sec.
191.13.
(A)
Not later than sixty days after the pole replacement fund created in
section 191.27 of the Revised Code receives funds for the purpose of
providing program reimbursements under the Ohio broadband pole
replacement and undergrounding program, the department of
housing
and
development
shall develop and publish an application form for the program and
post the form on the department web site.
(B)
An application shall include the following information:
(1)
The number, cost, and locations of pole replacements, mid-span pole
installations, and undergrounding for which reimbursement is
requested;
(2)
Documentation sufficient to establish that the pole replacements,
mid-span pole installations, and undergrounding described in the
application have been completed;
(3)
Documentation sufficient to establish how the costs for which
reimbursement is requested comport with the reimbursement
requirements under the program;
(4)
The reimbursement amount requested under the program;
(5)
Documentation of any broadband grant funding awarded or received for
the area described in the application;
(6)
Accounting information that is sufficient to demonstrate that costs
for which a program reimbursement is requested are eligible for a
program reimbursement pursuant to division (C) of section 191.21 of
the Revised Code, if the applicant has received any grant funding
described in division (B)(5) of this section;
(7)
A notarized statement, from an officer or agent of the applicant,
that the contents of the application are true and accurate and that
the applicant accepts the requirements of the program as a condition
of receiving a program reimbursement;
(8)
Any information necessary to demonstrate the applicant's compliance,
and agreement to comply, with any conditions associated with the
reimbursement awarded to the applicant;
(9)
Any other information the department considers necessary for final
review and for the award and payment of program reimbursements.
(C)
If any federal funds are used for any awards under the program, the
application form shall identify and describe any additional federal
conditions required in connection with the use of the federal funds.
Sec.
191.15.
(A)
Before receiving a program reimbursement under the Ohio broadband
pole replacement and undergrounding program, each applicant shall
agree to do the following:
(1)
Not later than ninety days after receipt of a program reimbursement,
activate qualifying broadband service to end users utilizing the
broadband infrastructure for which the applicant has received
reimbursement for pole replacement, mid-span pole installation, or
undergrounding costs;
(2)
Certify the application's compliance with the requirements of
sections 191.10 to 191.24 of the Revised Code;
(3)
Comply with any federal requirements associated with the funding used
by the broadband expansion program authority in connection with the
award;
(4)
Refund all or any portion of reimbursements received under the
program as specified in section 191.30 of the Revised Code, if
pursuant to that section the applicant is found to have materially
violated any of the requirements of sections 191.10 to 191.24 of the
Revised Code.
(B)
For an application regarding a pole replacement or mid-span pole
installation, the applicant shall do the following if the applicant
is the pole owner, or affiliate of the pole owner:
(1)
Comply with division (A) of this section;
(2)
Commit that the pole owner will comply with all applicable pole
attachment regulations and requirements imposed by the state or
federal government;
(3)
Commit that the pole owner will exclude from its costs used to
calculate its rates or charges for access to its utility poles for
which the applicant has been reimbursed as follows:
(a)
Under the Ohio broadband pole replacement and undergrounding program
or any other broadband grant program;
(b)
By a provider, for make-ready charges;
(4)(a)
Commit that the pole owner will maintain and make available, upon
reasonable request, to the department of
housing
and
development
or to a party subject to the rates and charges described in division
(B)(3) of this section, accounting documentation sufficient to
demonstrate compliance with division (B)(3) of this section;
(b)
Division (B)(4)(a) of this section does not apply to an electric
distribution utility as defined in section 4928.01 of the Revised
Code, unless the electric distribution utility is the applicant.
Sec.
191.17.
(A)
Not later than sixty days after receiving an application forwarded by
the department of
housing
and
development,
the broadband expansion program authority shall award program
reimbursements to the applicant for costs described in divisions (A)
and (B) of section 191.21 of the Revised Code after reviewing the
application, and establishing the applicant's eligibility for
reimbursement under the Ohio broadband pole replacement and
undergrounding program.
(B)
For pole replacement or mid-span pole installation costs described
under division (A) of section 191.21 of the Revised Code,
reimbursements shall be in an amount equal to the lesser of either of
the following:
(1)
Seven thousand five hundred dollars multiplied by the number of pole
replacements and mid-span pole installations in an application;
(2)
Seventy-five per cent of the total eligible costs therein.
(C)
For undergrounding costs described under division (B) of section
191.21 of the Revised Code, reimbursements shall be in an amount not
to exceed seventy-five per cent of the total eligible costs therein,
except that the reimbursements may not exceed the reimbursement
amount that would be available under division (B) of this section, if
the applicant did a pole replacement or mid-span pole installation
instead of undergrounding that infrastructure.
Sec.
191.19.
(A)
The department of
housing
and
development,
at the direction of the broadband expansion program authority, shall
issue program reimbursements awarded for applications approved under
the Ohio broadband pole replacement and undergrounding program. The
reimbursements shall be made using money available for this purpose
in the broadband pole replacement fund created in section 191.27 of
the Revised Code. The authority shall award, and the department shall
fund, reimbursements until funds available for that purpose are no
longer available.
(B)
If, upon the exhaustion of the fund, there are any applications
pending, the applications shall be denied. Applications that have
been denied pursuant to this division may be resubmitted to the
department, and, if sufficient money is later deposited in the fund,
reimbursements may be awarded according to the application and award
process under sections 191.10 to 191.24 of the Revised Code.
Sec.
191.27.
There
is hereby created in the state treasury the broadband pole
replacement fund consisting of money credited or transferred to the
fund, money appropriated by the general assembly, including from
available federal funds, or money authorized for expenditure by the
state controlling board under section 131.35 of the Revised Code from
available federal funds, and grants, gifts, and contributions made
directly to the fund. Money in the fund shall be used by the
department of
housing
and
development
to provide reimbursements awarded under the Ohio broadband pole
replacement and undergrounding program and by the director of
housing
and
development
to administer the program.
Sec.
191.30.
(A)
The department of
housing
and
development
shall direct an applicant that has been awarded a program
reimbursement under the Ohio broadband pole replacement and
undergrounding program to refund, with interest, all or any portion
of the reimbursements the applicant received under the program, if
the department finds, upon substantial evidence and after notice and
the opportunity to respond, that the applicant materially violated
any of the requirements agreed to under sections 191.10 to 191.24 of
the Revised Code with respect to all or any portion of the
reimbursements received. The interest included with a refund under
this section shall be at the applicable federal funds rate as
specified in division (B) of section 1304.84 of the Revised Code.
(B)
At the direction of the department, refunds submitted under division
(A) of this section shall be deposited into the broadband pole
replacement fund created in section 191.27 of the Revised Code or the
general revenue fund.
Sec.
191.33.
Not
later than sixty days after the first amount of money is deposited to
the credit of the broadband pole replacement fund created in section
191.27 of the Revised Code, the department of
housing
and
development
shall publish and regularly update on its web site the following
program information:
(A)
The number of program applications received, processed, and rejected
by the broadband expansion program authority;
(B)
The number, reimbursement amount, and status of program
reimbursements awarded by the authority;
(C)
The number of providers receiving reimbursements;
(D)
The balance remaining in the fund at the time of the latest program
update on the web site.
Sec.
191.35.
Beginning
not later than one year after the first amount of money is deposited
to the credit of the broadband pole replacement fund created in
section 191.27 of the Revised Code and annually thereafter, the
auditor of state shall audit the fund and its administration by the
broadband expansion program authority and the department of
housing
and
development
for compliance with the requirements of sections 191.02 to 191.45 of
the Revised Code.
Sec.
191.37.
Not
later than one year after each time money in the broadband pole
replacement fund created in section 191.27 of the Revised Code is
exhausted, the broadband expansion program authority shall identify,
examine, and report on the deployment of qualifying broadband
infrastructure under the Ohio broadband pole replacement and
undergrounding program and the technology facilitated by the program
reimbursements the authority has awarded. The report shall be
published on the department of
housing
and
development
web site.
Sec.
191.40.
Not
later than ninety days after
the
effective date of this section
October
3, 2023
,
the director of
housing
and
development
shall adopt rules under Chapter 119. of the Revised Code that are
necessary for successful and efficient administration of the
broadband pole replacement and undergrounding program.
Sec.
191.44.
The
department of
housing
and
development
in coordination with the Ohio broadband expansion program authority
shall do the following, for the period ending six months after the
date described in section 191.43 of the Revised Code:
(A)
Complete the review of any program applications that were submitted
prior to the date described in section 191.43 of the Revised Code and
pay program reimbursements for the approved applications;
(B)
Complete the review of any program applications submitted not later
than four months after the date described in section 191.43 of the
Revised Code and pay program reimbursements for the approved
applications, if the reimbursements are for costs that were incurred
prior to the date described in section 191.43 of the Revised Code.
Sec.
191.45.
If
there is an outstanding balance in the broadband pole replacement
fund after the Ohio broadband pole replacement program reimbursements
are paid pursuant to section 191.44 of the Revised Code, the
remaining balance shall be returned to the original funding sources
as determined by the department of
housing
and
development.
Sec.
308.21.
(A)
The board of trustees of a regional airport authority, the board of
directors of a port authority, or the legislative authority of a
municipal corporation that owns, operates, or maintains a qualifying
airport may, by resolution adopted before January 1, 2024, create an
airport development district for the purpose of developing and
implementing plans for public infrastructure improvements that
benefit the qualifying airport and to finance expenditures to attract
or retain airlines, increase the number of scheduled flights to and
from the qualifying airport, or increase use of the airport by
aircraft having greater passenger capacity or greater first-class
seating availability. The resolution shall include a development plan
for the district that, at minimum, specifies all of the following:
(1)
The manner in which the nonprofit corporation that is to govern the
district will be formed, operated, and organized;
(2)
The manner in which the board of directors of the nonprofit
corporation that is to govern the district are appointed;
(3)
A plan for the public infrastructure improvements and other
expenditures to be financed by the district;
(4)
A description of the territory of the district, which shall consist
of all parcels of real property that are located within five miles of
the qualifying airport. For the purpose of this division, a parcel is
located within five miles of a qualifying airport if the distance
between any portion of the parcel and any portion of the qualifying
airport is five miles or less.
(B)
After adopting a resolution under division (A) of this section, the
board of trustees of the regional airport authority, board of
directors of the port authority, or legislative authority of the
municipal corporation shall submit a copy to the director of
housing
and
development.
(C)
An airport development district is not a political subdivision for
any purpose prescribed in the Revised Code. A district shall be
considered a public agency under section 102.01 of the Revised Code
and a public authority under section 4115.03 of the Revised Code.
Districts are subject to sections 121.22 and 121.23 of the Revised
Code, but are not subject to sections 121.81 to 121.82 of the Revised
Code.
Sec.
321.261.
(A)
In each county treasury there shall be created the treasurer's
delinquent tax and assessment collection fund and the prosecuting
attorney's delinquent tax and assessment collection fund. Except as
otherwise provided in this division, two and one-half per cent of all
delinquent real property, personal property, and manufactured and
mobile home taxes and assessments collected by the county treasurer
shall be deposited in the treasurer's delinquent tax and assessment
collection fund, and two and one-half per cent of such delinquent
taxes and assessments shall be deposited in the prosecuting
attorney's delinquent tax and assessment collection fund. The board
of county commissioners shall appropriate to the county treasurer
from the treasurer's delinquent tax and assessment collection fund,
and shall appropriate to the prosecuting attorney from the
prosecuting attorney's delinquent tax and assessment collection fund,
money to the credit of the respective fund, and except as provided in
division (D) of this section, the appropriation shall be used only
for the following purposes:
(1)
By the county treasurer or the county prosecuting attorney in
connection with the collection of delinquent real property, personal
property, and manufactured and mobile home taxes and assessments,
including proceedings related to foreclosure of the state's lien for
such taxes against such property;
(2)
With respect to any portion of the amount appropriated from the
treasurer's delinquent tax and assessment collection fund for the
benefit of a county land reutilization corporation organized under
Chapter 1724. of the Revised Code, the county land reutilization
corporation. Upon the deposit of amounts in the treasurer's
delinquent tax and assessment collection fund, any amounts allocated
at the direction of the treasurer to the support of the county land
reutilization corporation shall be paid out of such fund to the
corporation upon a warrant of the county auditor.
If
the balance in the treasurer's or prosecuting attorney's delinquent
tax and assessment collection fund exceeds three times the amount
deposited into the fund in the preceding year, the treasurer or
prosecuting attorney, on or before the twentieth day of October of
the current year, may direct the county auditor to forgo the
allocation of delinquent taxes and assessments to that officer's
respective fund in the ensuing year. If the county auditor receives
such direction, the auditor shall cause the portion of taxes and
assessments that otherwise would be credited to the fund under this
section in that ensuing year to be allocated and distributed among
taxing units' funds as otherwise provided in this chapter and other
applicable law.
(B)
During the period of time that a county land reutilization
corporation is functioning as such on behalf of a county, the board
of county commissioners, upon the request of the county treasurer,
may designate by resolution that an additional amount, not exceeding
five per cent of all collections of delinquent real property,
personal property, and manufactured and mobile home taxes and
assessments, shall be deposited in the treasurer's delinquent tax and
assessment collection fund and be available for appropriation by the
board for the use of the corporation. Any such amounts so deposited
and appropriated under this division shall be paid out of the
treasurer's delinquent tax and assessment collection fund to the
corporation upon a warrant of the county auditor.
(C)
Annually by the first day of December, the county treasurer and the
prosecuting attorney each shall submit a report to the board of
county commissioners regarding the use of the moneys appropriated
from their respective delinquent tax and assessment collection funds.
Each report shall specify the amount appropriated from the fund
during the current calendar year, an estimate of the amount so
appropriated that will be expended by the end of the year, a summary
of how the amount appropriated has been expended in connection with
delinquent tax collection activities or land reutilization, and an
estimate of the amount that will be credited to the fund during the
ensuing calendar year.
The
annual report of a county land reutilization corporation required by
section 1724.05 of the Revised Code shall include information
regarding the amount and use of the moneys that the corporation
received from the treasurer's delinquent tax and assessment
collection fund.
(D)(1)
In any county, if the county treasurer or prosecuting attorney
determines that the balance to the credit of that officer's
corresponding delinquent tax and assessment collection fund exceeds
the amount required to be used as prescribed by division (A) of this
section, the county treasurer or prosecuting attorney may expend the
excess to prevent residential mortgage foreclosures in the county and
to address problems associated with other foreclosed real property.
The amount used for that purpose in any year may not exceed the
amount that would cause the fund to have a reserve of less than
twenty per cent of the amount expended in the preceding year for the
purposes of division (A) of this section.
Money
authorized to be expended under division (D)(1) of this section shall
be used to provide financial assistance in the form of loans to
borrowers in default on their home mortgages, including for the
payment of late fees, to clear arrearage balances, and to augment
moneys used in the county's foreclosure prevention program. The money
also may be used to assist county land reutilization corporations,
municipal corporations, or townships in the county, upon their
application to the county treasurer, prosecuting attorney, or the
county department of
housing
and
development,
in the nuisance abatement of deteriorated residential buildings in
foreclosure, or vacant, abandoned, tax-delinquent, or blighted real
property, including paying the costs of boarding up such buildings,
lot maintenance, and demolition.
(2)
In a county having a population of more than one hundred thousand
according to the department of
housing
and
development's
2006 census estimate, if the county treasurer or prosecuting attorney
determines that the balance to the credit of that officer's
corresponding delinquent tax and assessment collection fund exceeds
the amount required to be used as prescribed by division (A) of this
section, the county treasurer or prosecuting attorney may expend the
excess to assist county land reutilization corporations, townships,
or municipal corporations located in the county as provided in
division (D)(2) of this section, provided that the combined amount so
expended each year in a county shall not exceed five million dollars.
Upon application for the funds by a county land reutilization
corporation, township, or municipal corporation, the county treasurer
or prosecuting attorney may assist the county land reutilization
corporation, township, or municipal corporation in abating foreclosed
residential nuisances, including paying the costs of securing such
buildings, lot maintenance, and demolition. At the prosecuting
attorney's discretion, the prosecuting attorney also may apply the
funds to costs of prosecuting alleged violations of criminal and
civil laws governing real estate and related transactions, including
fraud and abuse.
Sec.
321.262.
Notwithstanding
section 321.261 of the Revised Code, in a county having a population
of more than four hundred thousand according to the department of
housing
and
development's
2006 census estimate, if the county treasurer or prosecuting attorney
determines that the amount appropriated to the office from the
county's delinquent tax and assessment collection fund exceeds the
amount required to be used as prescribed by that section, the county
treasurer or prosecuting attorney may expend the excess to provide
financial assistance in the form of loans to borrowers in default on
their home mortgages, including for the payment of late fees, to
clear arrearage balances, and to augment moneys used in the county's
foreclosure prevention program, provided that the combined amount so
expended each year in the county shall not exceed three million
dollars.
Sec.
333.03.
(A)
A person seeking to enter into an agreement and obtain payments under
section 333.02 of the Revised Code shall provide both of the
following to the board of county commissioners:
(1)
A certification by the person's chief financial officer, or the
equivalent if that position does not exist, that the criteria listed
in division (B) of section 333.01 of the Revised Code will be met;
and
(2)
An application on a form or in a format acceptable to the board that
describes the proposed impact facility, including the projected level
of investment in and new jobs to be created at the facility, the
rationale used for determining that more than fifty per cent of the
facility's visitors live at least fifty miles from the facility, the
types of activities to be conducted at the facility, the projected
levels of sales to occur at the facility, a calculation of the
facility's square footage that will be dedicated to educational or
exhibition activities, and any other information the board of county
commissioners reasonably requests about the expected operations of
the facility.
(B)
The board of county commissioners shall request the director of
housing
and
development
services
to
certify that the proposed facility meets the criteria for an impact
facility listed in division (B) of section 333.01 of the Revised
Code. The board of county commissioners may, but need not, make
findings of fact that a proposed facility meets the criteria for an
impact facility listed in division (B) of section 333.01 of the
Revised Code before or after requesting the certification. If the
director of
housing
and
development
services
certifies
a proposed facility as an impact facility under this section, and if
the board makes such findings, the findings and certification are
conclusive and not subject to reopening at any time.
Sec.
333.04.
(A)
After review of the items submitted under division (A) of section
333.03 of the Revised Code, and after receipt of the certification
from the director of
housing
and
development
services
under
division (B) of that section, a board of county commissioners, before
June 1, 2015, may enter into an agreement under section 333.02 of the
Revised Code, provided that the board has determined all of the
following:
(1)
The proposed impact facility is economically sound;
(2)
Construction of the proposed impact facility has not begun prior to
the day the agreement is entered into;
(3)
The impact facility will benefit the county by increasing employment
opportunities and strengthening the local and regional economy; and
(4)
Receiving payments from the board of county commissioners is a major
factor in the person's decision to go forward with construction of
the impact facility.
(B)
An agreement entered into under this section shall include all of the
following:
(1)
A description of the impact facility that is the subject of the
agreement, including the existing investment level, if any, the
proposed amount of investments, the scheduled starting and completion
dates for the facility, and the number and type of full-time
equivalent positions to be created at the facility;
(2)
The percentage of the county sales and use tax collected at the
impact facility that will be used to make payments to the person
entering into the agreement;
(3)
The term of the payments and the first calendar quarter in which the
person may apply for a payment under section 333.06 of the Revised
Code;
(4)
A requirement that the amount of payments made to the person during
the term established under division (B)(3) of this section shall not
exceed the person's qualifying investment, and that all payments
cease when that amount is reached;
(5)
A requirement that the person maintain operations at the impact
facility for at least the term established under division (B)(3) of
this section;
(6)
A requirement that the person annually certify to the board of county
commissioners, on or before a date established by the board in the
agreement, the level of investment in, the number of employees and
type of full-time equivalent positions at, and the amount of county
sales and use tax collected and remitted to the tax commissioner or
treasurer of state from sales made at, the facility;
(7)
A provision stating that the creation of the proposed impact facility
does not involve the relocation of any full-time equivalent positions
or any tangible personal property to the impact facility from another
facility owned by the person, or a related member of the person, that
is located in another political subdivision of this state, other than
the political subdivision in which the impact facility is or will be
located;
(8)
A detailed explanation of how the person determined that more than
fifty per cent of the visitors to the facility live at least fifty
miles from the facility.
(C)
No payment may be made under this chapter to a person that is found
to be in violation of the provision described in division (B)(7) of
this section.
Sec.
333.05.
(A)
Except as otherwise provided in this division, if a person fails to
meet or comply with any provision of an agreement entered into under
section 333.02 of the Revised Code, the board of county commissioners
may amend the agreement to reduce the percentage or term, or both, of
the payments the person is entitled to receive under the agreement.
The reduction shall commence in the calendar quarter immediately
following the calendar quarter in which the board amends the
agreement. If a person fails to comply with the provision described
in division (B)(7) of section 333.04 of the Revised Code, no payments
may be made under this chapter to that person after the person is
found to be in violation.
(B)
A board of county commissioners shall submit to the department of
housing
and
development
and to the tax commissioner a copy of each agreement entered into
under section 333.02 of the Revised Code and any modifications to an
agreement within thirty days after finalization or modification of
the agreement.
Sec.
340.13.
(A)
As used in this section:
(1)
"Minority business enterprise" has the same meaning as in
section 122.71 of the Revised Code.
(2)
"EDGE business enterprise" has the same meaning as in
section 122.922 of the Revised Code.
(B)
Any minority business enterprise that desires to bid on a contract
under division (C) of this section shall first apply to the
department of
housing
and
development
for certification as a minority business enterprise. Any EDGE
business enterprise that desires to bid on a contract under division
(D) of this section shall first apply to the department of
housing
and
development
for certification as an EDGE business enterprise. The director of
housing
and
development
shall approve the application of any minority business enterprise or
EDGE business enterprise that complies with the rules adopted under
section 122.71 or 122.922 of the Revised Code, respectively. The
director shall prepare and maintain a list of minority business
enterprises and EDGE business enterprises certified under those
sections.
(C)
From the contracts to be awarded for the purchases of equipment,
materials, supplies, or services, other than contracts entered into
under section 340.036 of the Revised Code, each board of alcohol,
drug addiction, and mental health services shall select a number of
contracts with an aggregate value of approximately fifteen per cent
of the total estimated value of contracts to be awarded in the
current fiscal year. The board shall set aside the contracts so
selected for bidding by minority business enterprises only. The
bidding procedures for such contracts shall be the same as for all
other contracts awarded under section 307.86 of the Revised Code,
except that only minority business enterprises certified and listed
pursuant to division (B) of this section shall be qualified to submit
bids.
(D)
To the extent that a board is authorized to enter into contracts for
construction, the board shall strive to attain a yearly contract
dollar procurement goal the aggregate value of which equals
approximately five per cent of the aggregate value of construction
contracts for the current fiscal year for EDGE business enterprises
only.
(E)(1)
In the case of contracts set aside under division (C) of this
section, if no bid is submitted by a minority business enterprise,
the contract shall be awarded according to normal bidding procedures.
The board shall from time to time set aside such additional contracts
as are necessary to replace those contracts previously set aside on
which no minority business enterprise bid.
(2)
If a board, after having made a good faith effort, is unable to
comply with the goal of procurement for contracting with EDGE
business enterprises pursuant to division (D) of this section, the
board may apply in writing, on a form prescribed by the department of
administrative services, to the director of mental health and
addiction services for a waiver or modification of the goal.
(F)
This section does not preclude any minority business enterprise or
EDGE business enterprise from bidding on any other contract not
specifically set aside for minority business enterprises or subject
to procurement goals for EDGE business enterprises.
(G)
Within ninety days after the beginning of each fiscal year, each
board shall file a report with the department of mental health and
addiction services that shows for that fiscal year the name of each
minority business enterprise and EDGE business enterprise with which
the board entered into a contract, the value and type of each such
contract, the total value of contracts awarded under divisions (C)
and (D) of this section, the total value of contracts awarded for the
purchases of equipment, materials, supplies, or services, other than
contracts entered into under section 340.036 of the Revised Code, and
the total value of contracts entered into for construction.
(H)
Any person who intentionally misrepresents self as owning,
controlling, operating, or participating in a minority business
enterprise or an EDGE business enterprise for the purpose of
obtaining contracts or any other benefits under this section shall be
guilty of theft by deception as provided for in section 2913.02 of
the Revised Code.
Sec.
703.34.
(A)
As used in this section, "condition for the dissolution of a
village" means any of the following:
(1)
The village has been declared to be in a fiscal emergency under
Chapter 118. of the Revised Code and has been in fiscal emergency for
at least three consecutive years with little or no improvement on the
conditions that caused the fiscal emergency declaration.
(2)
The village has failed to properly follow applicable election laws
for at least two consecutive election cycles for any one elected
office in the village.
(3)
The village has been declared during an audit conducted under section
117.11 of the Revised Code to be unauditable under section 117.41 of
the Revised Code in at least two consecutive audits.
(4)
The village does not provide at least two services typically provided
by municipal government, such as police or fire protection, garbage
collection, water or sewer service, emergency medical services, road
maintenance, or similar services. "Services" does not
include any administrative service or legislative action.
(5)
The village has failed for any fiscal year to adopt the tax budget
required by section 5705.28 of the Revised Code.
(6)
A village elected official has been convicted of theft in office,
either under section 2921.41 of the Revised Code or an equivalent
criminal statute at the federal level, at least two times in a period
of ten years. The convicted official with respect to those
convictions may be the same person or different persons.
(B)
If the auditor of state finds, in an audit report issued under
division (A) or (B) of section 117.11 of the Revised Code of a
village that has a population of one hundred fifty persons or less
and consists of less than two square miles, that the village meets at
least two conditions for the dissolution of a village, the auditor of
state shall send a certified copy of the report together with a
letter to the attorney general requesting the attorney general to
institute legal action to dissolve the village in accordance with
division (C) of this section. The report and letter shall be sent to
the attorney general within ten business days after the auditor of
state's transmittal of the report to the village. The audit report
transmitted to the village shall be accompanied by a notice to the
village of the auditor's intent to refer the report to the attorney
general for legal action in accordance with this section.
(C)
Within twenty days of receipt of the auditor of state's report and
letter, the attorney general may file a legal action in the court of
common pleas on behalf of the state to request the dissolution of the
village that is the subject of the audit report. If a legal action is
filed, the court shall hold a hearing within ninety days after the
date the attorney general files the legal action with the court.
Notice of the hearing shall be filed with the attorney general, the
clerk of the village that is the subject of the action, and each
fiscal officer of a township located wholly or partly within the
village.
At
the hearing on dissolution, the court shall determine if the village
has a population of one hundred fifty persons or less, consists of
less than two square miles, and meets at least two conditions for the
dissolution of a village. If the court so finds, the court shall
order the dissolution of the village, which shall proceed in
accordance with sections 703.31 to 703.39 of the Revised Code. The
attorney general shall file a certified copy of the court's order of
dissolution with the secretary of state and the county recorder of
the county in which the village is situated, who shall record it in
their respective offices.
(D)
For purposes of this section, the population of a village shall be
the population determined either at the last preceding federal
decennial census or according to population estimates certified by
the department of
housing
and
development
between decennial censuses.
(E)
The procedure in this section is in addition to the procedure of
section 703.33 of the Revised Code for the dissolution of a village.
Sec.
709.024.
(A)
A petition filed under section 709.021 of the Revised Code that
requests to follow this section is for the special procedure of
annexing land into a municipal corporation for the purpose of
undertaking a significant economic development project. As used in
this section, "significant economic development project"
means one or more economic development projects that can be
classified as industrial, distribution, high technology, research and
development, or commercial, which projects may include ancillary
residential and retail uses and which projects shall satisfy all of
the following:
(1)
Total private real and personal property investment in a project
shall be in excess of ten million dollars through land and
infrastructure, new construction, reconstruction, installation of
fixtures and equipment, or the addition of inventory, excluding
investment solely related to the ancillary residential and retail
elements, if any, of the project. As used in this division, "private
real and personal property investment" does not include payments
in lieu of taxes, however characterized, under Chapter 725. or 1728.
or sections 5709.40 to 5709.43, 5709.45 to 5709.47, 5709.73 to
5709.75, or 5709.78 to 5709.81 of the Revised Code.
(2)
There shall be created by the project an additional annual payroll in
excess of one million dollars, excluding payroll arising solely out
of the retail elements, if any, of the project.
(3)
The project has been certified by the state director of
housing
and
development
as meeting the requirements of divisions (A)(1) and (2) of this
section.
(B)
Upon the filing of the petition under section 709.021 of the Revised
Code in the office of the clerk of the board of county commissioners,
the clerk shall cause the petition to be entered upon the journal of
the board at its next regular session. This entry shall be the first
official act of the board on the petition. Within five days after the
filing of the petition, the agent for the petitioners shall notify in
the manner and form specified in this division the clerk of the
legislative authority of the municipal corporation to which
annexation is proposed, the fiscal officer of each township any
portion of which is included within the territory proposed for
annexation, the clerk of the board of county commissioners of each
county in which the territory proposed for annexation is located
other than the county in which the petition is filed, and the owners
of property adjacent to the territory proposed for annexation or
adjacent to a road that is adjacent to that territory and located
directly across that road from that territory. The notice shall refer
to the time and date when the petition was filed and the county in
which it was filed and shall have attached or shall be accompanied by
a copy of the petition and any attachments or documents accompanying
the petition as filed.
Notice
to a property owner is sufficient if sent by regular United States
mail to the tax mailing address listed on the county auditor's
records. Notice to the appropriate government officer shall be given
by certified mail, return receipt requested, or by causing the notice
to be personally served on the officer, with proof of service by
affidavit of the person who delivered the notice. Proof of service of
the notice on each appropriate government officer shall be filed with
the board of county commissioners with which the petition was filed.
(C)(1)
Within thirty days after the petition is filed, the legislative
authority of the municipal corporation to which annexation is
proposed and each township any portion of which is included within
the territory proposed for annexation may adopt and file with the
board of county commissioners an ordinance or resolution consenting
or objecting to the proposed annexation. An objection to the proposed
annexation shall be based solely upon the petition's failure to meet
the conditions specified in division (F) of this section. Failure of
the municipal corporation or any of those townships to timely file an
ordinance or resolution consenting or objecting to the proposed
annexation shall be deemed to constitute consent by that municipal
corporation or township to the proposed annexation.
(2)
Within twenty days after receiving the notice required by division
(B) of this section, the legislative authority of the municipal
corporation shall adopt, by ordinance or resolution, a statement
indicating what services the municipal corporation will provide or
cause to be provided, and an approximate date by which it will
provide or cause them to be provided, to the territory proposed for
annexation, upon annexation. If a hearing is to be conducted under
division (E) of this section, the legislative authority shall file
the statement with the clerk of the board of county commissioners at
least twenty days before the date of the hearing.
(D)
If all parties to the annexation proceedings consent to the proposed
annexation, a hearing shall not be held, and the board, at its next
regular session, shall enter upon its journal a resolution granting
the annexation. There is no appeal in law or in equity from the
board's entry of a resolution under this division. The clerk of the
board shall proceed as provided in division (C)(1) of section 709.033
of the Revised Code.
(E)
Unless the petition is granted under division (D) of this section, a
hearing shall be held on the petition. The board of county
commissioners shall hear the petition at its next regular session and
shall notify the agent for the petitioners of the hearing's date,
time, and place. The agent for the petitioners shall give, within
five days after receipt of the notice of the hearing from the board,
to the parties and property owners entitled to notice under division
(B) of this section, notice of the date, time, and place of the
hearing. Notice to a property owner is sufficient if sent by regular
United States mail to the tax mailing address listed on the county
auditor's records. At the hearing, the parties and any owner of real
estate within the territory proposed to be annexed are entitled to
appear for the purposes described in division (C) of section 709.032
of the Revised Code.
(F)
Within thirty days after a hearing under division (E) of this
section, the board of county commissioners shall enter upon its
journal a resolution granting or denying the proposed annexation. The
resolution shall include specific findings of fact as to whether or
not each of the conditions listed in this division has been met. If
the board grants the annexation, the clerk of the board shall proceed
as provided in division (C)(1) of section 709.033 of the Revised
Code.
The
board shall enter a resolution granting the annexation if it finds,
based upon a preponderance of the substantial, reliable, and
probative evidence on the whole record, that each of the following
conditions has been met:
(1)
The petition meets all the requirements set forth in, and was filed
in the manner provided in, section 709.021 of the Revised Code.
(2)
The persons who signed the petition are owners of real estate located
in the territory proposed to be annexed in the petition and
constitute all of the owners of real estate in that territory.
(3)
No street or highway will be divided or segmented by the boundary
line between a township and the municipal corporation as to create a
road maintenance problem, or if the street or highway will be so
divided or segmented, the municipal corporation has agreed, as a
condition of the annexation, that it will assume the maintenance of
that street or highway. For the purposes of this division, "street"
or "highway" has the same meaning as in section 4511.01 of
the Revised Code.
(4)
The municipal corporation to which the territory is proposed to be
annexed has adopted an ordinance or resolution as required by
division (C)(2) of this section.
(5)
The state director of
housing
and
development
has certified that the project meets the requirements of divisions
(A)(1) and (2) of this section and thereby qualifies as a significant
economic development project. The director's certification is binding
on the board of county commissioners.
(G)
An owner who signed the petition may appeal a decision of the board
of county commissioners denying the proposed annexation under section
709.07 of the Revised Code. No other person has standing to appeal
the board's decision in law or in equity. If the board grants the
annexation, there shall be no appeal in law or in equity.
(H)
Notwithstanding anything to the contrary in section 503.07 of the
Revised Code, unless otherwise provided in an annexation agreement
entered into pursuant to section 709.192 of the Revised Code or in a
cooperative economic development agreement entered into pursuant to
section 701.07 of the Revised Code, territory annexed into a
municipal corporation pursuant to this section shall not at any time
be excluded from the township under section 503.07 of the Revised
Code and, thus, remains subject to the township's real property
taxes.
(I)
A municipal corporation to which annexation is proposed is entitled
in its sole discretion to provide to the territory proposed for
annexation, upon annexation, services in addition to the services
described in the ordinance or resolution adopted by the legislative
authority of the municipal corporation under division (C)(2) of this
section.
Sec.
709.192.
(A)
The legislative authority of one municipal corporation, by ordinance
or resolution, and the board of township trustees of one or more
townships, by resolution, may enter into annexation agreements under
this section.
(B)
An annexation agreement may be entered into for any period of time
and may be amended at any time in the same manner as it was initially
authorized.
(C)
Annexation agreements may provide for any of the following:
(1)
The territory to be annexed;
(2)
Any periods of time during which no annexations will be made and any
areas that will not be annexed;
(3)
Land use planning matters;
(4)
The provision of joint services and permanent improvements within
incorporated or unincorporated areas;
(5)
The provision of services and improvements by a municipal corporation
in the unincorporated areas;
(6)
The provision of services and improvements by a township within the
territory of a municipal corporation;
(7)
The payment of service fees to a municipal corporation by a township;
(8)
The payment of service fees to a township by a municipal corporation;
(9)
The reallocation of the minimum mandated levies established pursuant
to section 5705.31 of the Revised Code between a municipal
corporation and a township in areas annexed after
the effective date of this section
March 27, 2002
;
(10)
The issuance of notes and bonds and other debt obligations by a
municipal corporation or township for public purposes authorized by
or under an annexation agreement and provision for the allocation of
the payment of the principal of, interest on, and other charges and
costs of issuing and servicing the repayment of the debt;
(11)
Agreements by a municipal corporation and township, with owners or
developers of land to be annexed, or with both those landowners and
land developers, concerning the provision of public services,
facilities, and permanent improvements;
(12)
The application of tax abatement statutes within the territory
covered by the annexation agreement subsequent to its execution;
(13)
Changing township boundaries under Chapter 503. of the Revised Code
to exclude newly annexed territory from the original township and
providing services to that territory;
(14)
Payments in lieu of taxes, if any, to be paid to a township by a
municipal corporation, which payments may be in addition to or in
lieu of other payments required by law to be made to the township by
that municipal corporation;
(15)
Any other matter pertaining to the annexation or development of
publicly or privately owned territory.
(D)
Annexation agreements shall not be in derogation of the powers
granted to municipal corporations by Article XVIII, Ohio
Constitution, by any other provisions of the Ohio Constitution, or by
the provisions of a municipal charter, nor shall municipal
corporations and townships agree to share proceeds of any tax levy,
although those proceeds may be used to make payments authorized in an
annexation agreement.
(E)
If any party to an annexation agreement believes another party has
failed to perform its part of any provision of that agreement,
including the failure to make any payment of moneys due under the
agreement, that party shall give notice to the other party clearly
stating what breach has occurred. The party receiving the notice has
ninety days from the receipt of that notice to cure the breach. If
the breach has not been cured within that ninety-day period, the
party that sent the notice may sue for recovery of the money due
under the agreement, sue for specific enforcement of the agreement,
or terminate the agreement upon giving notice of termination to all
the other parties.
(F)
In order to promote economic development or to provide appropriate
state functions and services to any part of the state, the state may
become a party to an annexation agreement upon the approval of the
director of
housing
and
development
and with the written consent of the legislative authority of the
municipal corporation and each of the boards of township trustees
that are parties to the agreement.
(G)
The board of county commissioners, by resolution, or any person, upon
request, may become a party to an annexation agreement, but only upon
the approval of the legislative authority of the municipal
corporation and each of the boards of township trustees that are
parties to the agreement, except that, if the state is a party to the
agreement, the director of
housing
and
development
is responsible for giving the approval.
(H)
The powers granted by this section and any annexation agreement
entered into under this section shall be liberally construed to allow
parties to these agreements to carry out the agreements' provisions
relevant to government improvements, facilities, and services, and to
promote and support economic development and the creation and
preservation of economic opportunities.
Sec.
715.70.
(A)
This section and section 715.71 of the Revised Code apply only to:
(1)
Municipal corporations and townships within a county that has adopted
a charter under Sections 3 and 4 of Article X, Ohio Constitution;
(2)
Municipal corporations and townships that have created a joint
economic development district comprised entirely of real property
owned by a municipal corporation at the time the district was created
under this section. The real property owned by the municipal
corporation shall include an airport owned by the municipal
corporation and located entirely beyond the municipal corporation's
corporate boundary.
(3)
Municipal corporations or townships that are part of or contiguous to
a transportation improvement district created under Chapter 5540. of
the Revised Code and that have created a joint economic development
district under this section or section 715.71 of the Revised Code
prior to November 15, 1995;
(4)
Municipal corporations that have previously entered into a contract
creating a joint economic development district pursuant to division
(A)(2) of this section, even if the territory to be included in the
district does not meet the requirements of that division.
(B)(1)
One or more municipal corporations and one or more townships may
enter into a contract approved by the legislative authority of each
contracting party pursuant to which they create as a joint economic
development district an area or areas for the purpose of facilitating
economic development to create or preserve jobs and employment
opportunities and to improve the economic welfare of the people in
the state and in the area of the contracting parties. A municipal
corporation described in division (A)(4) of this section may enter
into a contract with other municipal corporations and townships to
create a new joint economic development district. In a district that
includes a municipal corporation described in division (A)(4) of this
section, the territory of each of the contracting parties shall be
contiguous to the territory of at least one other contracting party,
or contiguous to the territory of a township or municipal corporation
that is contiguous to another contracting party, even if the
intervening township or municipal corporation is not a contracting
party. The area or areas of land to be included in the district shall
not include any parcel of land owned in fee by a municipal
corporation or a township or parcel of land that is leased to a
municipal corporation or a township, unless the municipal corporation
or township is a party to the contract or unless the municipal
corporation or township has given its consent to have its parcel of
land included in the district by the adoption of a resolution. As
used in this division, "parcel of land" means any parcel of
land owned by a municipal corporation or a township for at least a
six-month period within a five-year period prior to the creation of a
district, but "parcel of land" does not include streets or
public ways and sewer, water, and other utility lines whether owned
in fee or otherwise.
The
district created shall be located within the territory of one or more
of the participating parties and may consist of all or a portion of
such territory. The boundaries of the district shall be described in
the contract or in an addendum to the contract.
(2)
Prior to the public hearing to be held pursuant to division (D)(2) of
this section, the participating parties shall give a copy of the
proposed contract to each municipal corporation located within
one-quarter mile of the proposed joint economic development district
and not otherwise a party to the contract, and afford the municipal
corporation the reasonable opportunity, for a period of thirty days
following receipt of the proposed contract, to make comments and
suggestions to the participating parties regarding elements contained
in the proposed contract.
(3)
The district shall not exceed two thousand acres in area. The
territory of the district shall not completely surround territory
that is not included within the boundaries of the district.
(4)
Sections 503.07 to 503.12 of the Revised Code do not apply to
territory included within a district created pursuant to this section
as long as the contract creating the district is in effect, unless
the legislative authority of each municipal corporation and the board
of township trustees of each township included in the district
consent, by ordinance or resolution, to the application of those
sections of the Revised Code.
(5)
Upon the execution of the contract creating the district by the
parties to the contract, a participating municipal corporation or
township included within the district shall file a copy of the fully
executed contract with the county recorder of each county within
which a party to the contract is located, in the miscellaneous
records of the county. No annexation proceeding pursuant to Chapter
709. of the Revised Code that proposes the annexation to, merger, or
consolidation with a municipal corporation of any unincorporated
territory within the district shall be commenced for a period of
three years after the contract is filed with the county recorder of
each county within which a party to the contract is located unless
each board of township trustees whose territory is included, in whole
or part, within the district and the territory proposed to be
annexed, merged, or consolidated adopts a resolution consenting to
the commencement of the proceeding and a copy of the resolution is
filed with the legislative authority of each county within which a
party to the contract is located or unless the contract is terminated
during this period.
The
contract entered into between the municipal corporations and
townships pursuant to this section may provide for the prohibition of
any annexation by the participating municipal corporations of any
unincorporated territory within the district beyond the three-year
mandatory prohibition of any annexation provided for in division
(B)(5) of this section.
(C)(1)
After the legislative authority of a municipal corporation and the
board of township trustees have adopted an ordinance and resolution
approving a contract to create a joint economic development district
pursuant to this section, and after a contract has been signed, the
municipal corporations and townships shall jointly file a petition
with the legislative authority of each county within which a party to
the contract is located.
(a)
The petition shall contain all of the following:
(i)
A statement that the area or areas of the district are not greater
than two thousand acres and are located within the territory of one
or more of the contracting parties;
(ii)
A brief summary of the services to be provided by each party to the
contract or a reference to the portion of the contract describing
those services;
(iii)
A description of the area or areas to be designated as the district;
(iv)
The signature of a representative of each of the contracting parties.
(b)
The following documents shall be filed with the petition:
(i)
A signed copy of the contract, together with copies of district maps
and plans related to or part of the contract;
(ii)
A certified copy of the ordinances and resolutions of the contracting
parties approving the contract;
(iii)
A certificate from each of the contracting parties indicating that
the public hearings required by division (D)(2) of this section have
been held, the date of the hearings, and evidence of publication of
the notice of the hearings;
(iv)
One or more signed statements of persons who are owners of property
located in whole or in part within the area to be designated as the
district, requesting that the property be included within the
district, provided that those statements shall represent a majority
of the persons owning property located in whole or in part within the
district and persons owning a majority of the acreage located within
the district. A signature may be withdrawn by the signer up to but
not after the time of the public hearing required by division (D)(2)
of this section.
(2)
The legislative authority of each county within which a party to the
contract is located shall adopt a resolution approving the petition
for the creation of the district if the petition and other documents
have been filed in accordance with the requirements of division
(C)(1) of this section. If the petition and other documents do not
substantially meet the requirements of that division, the legislative
authority of any county within which a party to the contract is
located may adopt a resolution disapproving the petition for the
creation of the district. The legislative authority of each county
within which a party to the contract is located shall adopt a
resolution approving or disapproving the petition within thirty days
after the petition was filed. If the legislative authority of each
such county does not adopt the resolution within the thirty-day
period, the petition shall be deemed approved and the contract shall
go into effect immediately after that approval or at such other time
as the contract specifies.
(D)(1)
The contract creating the district shall set forth or provide for the
amount or nature of the contribution of each municipal corporation
and township to the development and operation of the district and may
provide for the sharing of the costs of the operation of and
improvements for the district. The contributions may be in any form
to which the contracting municipal corporations and townships agree
and may include but are not limited to the provision of services,
money, real or personal property, facilities, or equipment. The
contract may provide for the contracting parties to share revenue
from taxes levied on property by one or more of the contracting
parties if those revenues may lawfully be applied to that purpose
under the legislation by which those taxes are levied. The contract
shall provide for new, expanded, or additional services, facilities,
or improvements, including expanded or additional capacity for or
other enhancement of existing services, facilities, or improvements,
provided that those services, facilities, or improvements, or
expanded or additional capacity for or enhancement of existing
services, facilities, or improvements, required herein have been
provided within the two-year period prior to the execution of the
contract.
(2)
Before the legislative authority of a municipal corporation or a
board of township trustees passes any ordinance or resolution
approving a contract to create a joint economic development district
pursuant to this section, the legislative authority of the municipal
corporation and the board of township trustees shall each hold a
public hearing concerning the joint economic development district
contract and shall provide thirty days' public notice of the time and
place of the public hearing in a newspaper of general circulation in
the municipal corporation and the township. The board of township
trustees may provide additional notice to township residents in
accordance with section 9.03 of the Revised Code, and any additional
notice shall include the public hearing announcement; a summary of
the terms of the contract; a statement that the entire text of the
contract and district maps and plans are on file for public
examination in the office of the township fiscal officer; and
information pertaining to any tax changes that will or may occur as a
result of the contract.
During
the thirty-day period prior to the public hearing, a copy of the text
of the contract together with copies of district maps and plans
related to or part of the contract shall be on file, for public
examination, in the offices of the clerk of the legislative authority
of the municipal corporation and of the township fiscal officer. The
public hearing provided for in division (D)(2) of this section shall
allow for public comment and recommendations from the public on the
proposed contract. The contracting parties may include in the
contract any of those recommendations prior to the approval of the
contract.
(3)
Any resolution of the board of township trustees that approves a
contract that creates a joint economic development district pursuant
to this section shall be subject to a referendum of the electors of
the township. When a referendum petition, signed by ten per cent of
the number of electors in the township who voted for the office of
governor at the most recent general election for the office of
governor, is presented to the board of township trustees within
thirty days after the board of township trustees adopted the
resolution, ordering that the resolution be submitted to the electors
of the township for their approval or rejection, the board of
township trustees shall, after ten days and not later than four p.m.
of the ninetieth day before the election, certify the text of the
resolution to the board of elections. The board of elections shall
submit the resolution to the electors of the township for their
approval or rejection at the next general, primary, or special
election occurring subsequent to ninety days after the certifying of
the petition to the board of elections.
(4)
Upon the creation of a district under this section or section 715.71
of the Revised Code, one of the contracting parties shall file a copy
of the following with the director of
housing
and
development:
(a)
The petition and other documents described in division (C)(1) of this
section, if the district is created under this section;
(b)
The documents described in division (D) of section 715.71 of the
Revised Code, if the district is created under this section.
(E)
The district created by the contract shall be governed by a board of
directors that shall be established by or pursuant to the contract.
The board is a public body for the purposes of section 121.22 of the
Revised Code. The provisions of Chapter 2744. of the Revised Code
apply to the board and the district. The members of the board shall
be appointed as provided in the contract from among the elected
members of the legislative authorities and the elected chief
executive officers of the contracting parties, provided that there
shall be at least two members appointed from each of the contracting
parties.
(F)
The contract shall enumerate the specific powers, duties, and
functions of the board of directors of a district, and the contract
shall provide for the determination of procedures that are to govern
the board of directors. The contract may grant to the board the power
to adopt a resolution to levy an income tax within the district. The
income tax shall be used for the purposes of the district and for the
purposes of the contracting municipal corporations and townships
pursuant to the contract. The income tax may be levied in the
district based on income earned by persons working or residing within
the district and based on the net profits of businesses located in
the district. The income tax shall follow the provisions of Chapter
718. of the Revised Code, except that a vote shall be required by the
electors residing in the district to approve the rate of income tax.
If no electors reside within the district, then division (F)(4) of
this section applies. The rate of the income tax shall be no higher
than the highest rate being levied by a municipal corporation that is
a party to the contract.
(1)
Within one hundred eighty days after the first meeting of the board
of directors, the board may levy an income tax, provided that the
rate of the income tax is first submitted to and approved by the
electors of the district at the succeeding regular or primary
election, or a special election called by the board, occurring
subsequent to ninety days after a certified copy of the resolution
levying the income tax and calling for the election is filed with the
board of elections. If the voters approve the levy of the income tax,
the income tax shall be in force for the full period of the contract
establishing the district. Any increase in the rate of an income tax
that was first levied within one hundred eighty days after the first
meeting of the board of directors shall be approved by a vote of the
electors of the district, shall be in force for the remaining period
of the contract establishing the district, and shall not be subject
to division (F)(2) of this section.
(2)
Any resolution of the board of directors levying an income tax that
is adopted subsequent to one hundred eighty days after the first
meeting of the board of directors shall be subject to a referendum as
provided in division (F)(2) of this section. Any resolution of the
board of directors levying an income tax that is adopted subsequent
to one hundred eighty days after the first meeting of the board of
directors shall be subject to an initiative proceeding to amend or
repeal the resolution levying the income tax as provided in division
(F)(2) of this section. When a referendum petition, signed by ten per
cent of the number of electors in the district who voted for the
office of governor at the most recent general election for the office
of governor, is filed with the county auditor of each county within
which a party to the contract is located within thirty days after the
resolution is adopted by the board or when an initiative petition,
signed by ten per cent of the number of electors in the district who
voted for the office of governor at the most recent general election
for the office of governor, is filed with the county auditor of each
such county ordering that a resolution to amend or repeal a prior
resolution levying an income tax be submitted to the electors within
the district for their approval or rejection, the county auditor of
each such county, after ten days and not later than four p.m. of the
ninetieth day before the election, shall certify the text of the
resolution to the board of elections of that county. The county
auditor of each such county shall retain the petition. The board of
elections shall submit the resolution to such electors, for their
approval or rejection, at the next general, primary, or special
election occurring subsequent to ninety days after the certifying of
such petition to the board of elections.
(3)
Whenever a district is located in the territory of more than one
contracting party, a majority vote of the electors, if any, in each
of the several portions of the territory of the contracting parties
constituting the district approving the levy of the tax is required
before it may be imposed pursuant to this division.
(4)
If there are no electors residing in the district, no election for
the approval or rejection of an income tax shall be held pursuant to
this section, provided that where no electors reside in the district,
the maximum rate of the income tax that may be levied shall not
exceed one per cent.
(5)
The board of directors of a district levying an income tax shall
enter into an agreement with one of the municipal corporations that
is a party to the contract to administer, collect, and enforce the
income tax on behalf of the district. The resolution levying the
income tax shall provide the same credits, if any, to residents of
the district for income taxes paid to other such districts or
municipal corporations where the residents work, as credits provided
to residents of the municipal corporation administering the income
tax.
(6)(a)
The board shall publish or post public notice of any resolution
adopted levying an income tax in a newspaper of general circulation
within the district once a week for two consecutive weeks or as
provided in section 7.16 of the Revised Code, before the resolution
takes effect. In districts in which no newspaper is generally
circulated, notice shall be accomplished by posting copies in not
less than five of the most public places in the district, as
determined by the board, for a period of not less than fifteen days
before the effective date of the resolution.
(b)
Except as otherwise specified by this division, any referendum or
initiative proceeding within a district shall be conducted in the
same manner as is required for such proceedings within a municipal
corporation pursuant to sections 731.28 to 731.40 of the Revised
Code.
(G)
Membership on the board of directors does not constitute the holding
of a public office or employment within the meaning of any section of
the Revised Code or any charter provision prohibiting the holding of
other public office or employment, and shall not constitute an
interest, either direct or indirect, in a contract or expenditure of
money by any municipal corporation, township, county, or other
political subdivision with which the member may be connected. No
member of a board of directors shall be disqualified from holding any
public office or employment, nor shall such member forfeit or be
disqualified from holding any such office or employment, by reason of
the member's membership on the board of directors, notwithstanding
any law or charter provision to the contrary.
(H)
The powers and authorizations granted pursuant to this section or
section 715.71 of the Revised Code are in addition to and not in
derogation of all other powers granted to municipal corporations and
townships pursuant to law. When exercising a power or performing a
function or duty under a contract authorized pursuant to this section
or section 715.71 of the Revised Code, a municipal corporation may
exercise all of the powers of a municipal corporation, and may
perform all the functions and duties of a municipal corporation,
within the district, pursuant to and to the extent consistent with
the contract. When exercising a power or performing a function or
duty under a contract authorized pursuant to this section or section
715.71 of the Revised Code, a township may exercise all of the powers
of a township, and may perform all the functions and duties of a
township, within the district, pursuant to and to the extent
consistent with the contract. The district board of directors has no
powers except those specifically set forth in the contract as agreed
to by the participating parties. No political subdivision shall
authorize or grant any tax exemption pursuant to Chapter 1728. or
section 3735.67, 5709.62, 5709.63, or 5709.632 of the Revised Code on
any property located within the district without the consent of the
contracting parties. The prohibition for any tax exemption pursuant
to this division shall not apply to any exemption filed, pending, or
approved, or for which an agreement has been entered into, before the
effective date of the contract entered into by the parties.
(I)
Municipal corporations and townships may enter into binding
agreements pursuant to a contract authorized under this section or
section 715.71 of the Revised Code with respect to the substance and
administration of zoning and other land use regulations, building
codes, public permanent improvements, and other regulatory and
proprietary matters that are determined, pursuant to the contract, to
be for a public purpose and to be desirable with respect to the
operation of the district or to facilitate new or expanded economic
development in the state or the district, provided that no contract
shall exempt the territory within the district from the procedures
and processes of land use regulation applicable pursuant to municipal
corporation, township, and county regulations, including but not
limited to procedures and processes concerning zoning.
(J)
A contract creating a joint economic development district under this
section or section 715.71 of the Revised Code may designate property
as a community entertainment district or may be amended to designate
property as a community entertainment district as prescribed in
division (D) of section 4301.80 of the Revised Code. A joint economic
development district contract or amendment designating a community
entertainment district shall include all information and
documentation described in divisions (B)(1) through (6) of section
4301.80 of the Revised Code. The public notice required under
division (D)(2) of this section and division (C) of section 715.71 of
the Revised Code shall specify that the contract designates a
community entertainment district and describe the location of that
district. Except as provided in division (F) of section 4301.80 of
the Revised Code, an area designated as a community entertainment
district under a joint economic development district contract shall
not lose its designation even if the contract is canceled or
terminated.
(K)
A contract entered into pursuant to this section or section 715.71 of
the Revised Code may be amended and it may be renewed, canceled, or
terminated as provided in or pursuant to the contract. The contract
may be amended to add property owned by one of the contracting
parties to the district, or may be amended to delete property from
the district whether or not one of the contracting parties owns the
deleted property. The contract shall continue in existence throughout
its term and shall be binding on the contracting parties and on any
entities succeeding to such parties, whether by annexation, merger,
or otherwise. The income tax levied by the board pursuant to this
section or section 715.71 of the Revised Code shall apply in the
entire district throughout the term of the contract, notwithstanding
that all or a portion of the district becomes subject to annexation,
merger, or incorporation. No township or municipal corporation is
divested of its rights or obligations under the contract because of
annexation, merger, or succession of interests.
(L)
After the creation of a joint economic development district described
in division (A)(2) of this section, a municipal corporation that is a
contracting party may cease to own property included in the district,
but such property shall continue to be included in the district and
subject to the terms of the contract.
Sec.
715.72.
(A)
As used in this section:
(1)
"Contracting parties" means one or more municipal
corporations, one or more townships, and, under division (D) of this
section, one or more counties that have entered into a contract under
this section to create a joint economic development district.
(2)
"District" means a joint economic development district
created under this section.
(3)
"Contract for utility services" means a contract under
which a municipal corporation agrees to provide to a township or
another municipal corporation water, sewer, electric, or other
utility services necessary to the public health, safety, and welfare.
(4)
"Business" means a sole proprietorship, a corporation for
profit, a pass-through entity as defined in section 5733.04 of the
Revised Code, the federal government, the state, the state's
political subdivisions, a nonprofit organization, or a school
district.
(5)
"Owner" means a partner of a partnership, a member of a
limited liability company, a majority shareholder of an S
corporation, a person with a majority ownership interest in a
pass-through entity, or any officer, employee, or agent with
authority to make decisions legally binding upon a business.
(6)
"Record owner" means the person or persons in whose name a
parcel is listed on the tax list or exempt list compiled by the
county auditor under section 319.28 or 5713.08 of the Revised Code.
(7)
A business "operates within" a district if the net profits
of the business or the income of employees of the business would be
subject to an income tax levied within the district.
(8)
An employee is "employed within" a district if any portion
of the employee's income would be subject to an income tax levied
within the district.
(9)
"Mixed-use development" means a real estate project that
tends to mitigate traffic and sprawl by integrating some combination
of retail, office, residential, hotel, recreation, and other
functions in a pedestrian-oriented environment that maximizes the use
of available space by allowing members of the community to live,
work, and play in one architecturally expressive area with multiple
amenities.
(10)
"Water or sewer service plan or agreement" means either of
the following:
(a)
A state water quality management plan adopted by the Ohio
environmental protection agency or another authorized planning agency
pursuant to 33 U.S.C. 1288 and 1313 that contemplates that a
non-contracting municipal corporation will provide sanitary sewer
disposal services to an area within a proposed joint economic
development district;
(b)
A binding agreement between a municipal corporation and a third-party
water or sanitary sewer services provider, including another
municipal corporation or other public or private provider, that
provides that a non-contracting municipal corporation or another
provider that is not a contracting party will provide water or
sanitary sewer services to an area within a proposed joint economic
development district.
(11)
"Non-contracting municipal corporation" means a municipal
corporation that is not a contracting party.
(B)
This section provides alternative procedures and requirements to
those set forth in sections 715.70 and 715.71 of the Revised Code for
creating and operating a joint economic development district.
This
section applies to municipal corporations and townships that are
located in the same county or in adjacent counties.
(C)
One or more municipal corporations, one or more townships, and, under
division (D) of this section, one or more counties may enter into a
contract pursuant to which they designate one or more areas as a
joint economic development district for the purpose of facilitating
economic development and redevelopment, to create or preserve jobs
and employment opportunities, and to improve the economic welfare of
the people in this state and in the area of the contracting parties.
(1)
All
or part of the territory of a contracting party that is a municipal
corporation or a township shall be located in a county that includes
all or part of the territory of at least one other contracting party
or in a county adjacent to such a county.
Except
as otherwise provided in division (C)(2) of this section, the
territory of each of the contracting parties shall be contiguous to
,
or overlap with,
the territory of at least one other contracting party, or contiguous
to
,
or overlap with,
the territory of a
non-contracting
township
,
or
municipal
corporation,
or
county that
the
territory of which
is
contiguous to
another
,
or overlaps with, the territory of at least one other
contracting
party
,
even if the intervening township or municipal corporation is not a
contracting party
.
(2)
Contracting parties that have entered into a contract under section
715.70 or 715.71 of the Revised Code creating a joint economic
development district prior to November 15, 1995, may enter into a
contract under this section even if the territory of each of the
contracting parties is not contiguous to the territory of at least
one other contracting party, or contiguous to the territory of a
township or municipal corporation that is contiguous to another
contracting party as otherwise required under division (C)(1) of this
section. The contract and district shall meet the requirements of
this section.
(D)
If, on or after December 30, 2008, but on or before June 30, 2009,
one or more municipal corporations and one or more townships enter
into a contract or amend an existing contract under this section, one
or more counties in which all of those municipal corporations or
townships are located also may enter into the contract as a
contracting party or parties.
(E)(1)
The area or areas to be included in a joint economic development
district shall meet all of the following criteria:
(a)
The area or areas shall be located within the territory of one or
more of the contracting parties and may consist of all of the
territory of any or all of the contracting parties.
(b)
No electors, except those residing in a mixed-use development, shall
reside within the area or areas on the effective date of the contract
creating the district.
(c)
The area or areas shall not include any parcel of land owned in fee
by or leased to a municipal corporation or township, unless the
municipal corporation or township is a contracting party or has given
its consent to have the parcel of land included in the district by
the adoption of an ordinance or resolution.
(d)
The area or areas shall not include any parcel of land excluded
pursuant to division (J)(2) of this section.
(2)
The contracting parties may designate excluded parcels within the
boundaries of the joint economic development district. Excluded
parcels are not part of the district and persons employed or residing
on such parcels shall not be subject to any income tax imposed within
the district under division (F)(5) of this section.
(F)(1)
The contract creating a joint economic development district shall
provide for the amount or nature of the contribution of each
contracting party to the development and operation of the district
and may provide for the sharing of the costs of the operation of and
improvements for the district. The contributions may be in any form
to which the contracting parties agree and may include, but are not
limited to, the provision of services, money, real or personal
property, facilities, or equipment.
(2)
The contract may provide for the contracting parties to share revenue
from taxes levied by one or more of the contracting parties if those
revenues may lawfully be applied to that purpose under the
legislation by which those taxes are levied.
(3)
The contract shall include an economic development plan for the
district that consists of a schedule for the provision of new,
expanded, or additional services, facilities, or improvements. The
contract may provide for expanded or additional capacity for or other
enhancement of existing services, facilities, or improvements.
(4)
The contract shall enumerate the specific powers, duties, and
functions of the board of directors of the district described under
division (P) of this section and shall designate procedures
consistent with that division for appointing members to the board.
The contract shall enumerate rules to govern the board in carrying
out its business under this section.
(5)(a)
The contract may grant to the board the power to adopt a resolution
to levy an income tax within the entire district or within portions
of the district designated by the contract. The income tax shall be
used to carry out the economic development plan for the district or
the portion of the district in which the tax is levied and for any
other lawful purpose of the contracting parties pursuant to the
contract, including the provision of utility services by one or more
of the contracting parties.
(b)
An income tax levied under this section shall be based on both the
income earned by persons employed or residing within the district and
the net profit of businesses operating within the district.
Except
as provided in this section, the income tax levied within the
district is subject to Chapter 718. of the Revised Code, except that
no vote shall be required. The rate of the income tax shall be no
higher than the highest rate being levied by a municipal corporation
that is a contracting party.
(c)
If the board adopts a resolution to levy an income tax, it shall
enter into an agreement with a municipal corporation that is a
contracting party to administer, collect, and enforce the income tax
on behalf of the district.
(d)
A resolution levying an income tax under this section shall require
the contracting parties to annually set aside a percentage, to be
stated in the resolution, of the amount of the income tax collected
for the long-term maintenance of the district.
(e)
An income tax levied under this section shall apply in the district
or the portion of the district in which the contract authorizes an
income tax throughout the term of the contract creating the district.
The tax shall not apply to any persons employed or residing on a
parcel excluded from the district under division (E)(2) of this
section.
(6)
If there is unincorporated territory in the district, the contract
shall specify that restrictions on annexation proceedings under
division (R) of this section apply to such unincorporated territory.
The contract may prohibit proceedings under Chapter 709. of the
Revised Code proposing the annexation to, merger of, or consolidation
with a municipal corporation that is a contracting party of any
unincorporated territory within a township that is a contracting
party during the term of the contract regardless of whether that
territory is located within the district.
(7)
The contract may designate property as a community entertainment
district, or may be amended to designate property as a community
entertainment district, as prescribed in division (D) of section
4301.80 of the Revised Code. A contract or amendment designating a
community entertainment district shall include all information and
documentation described in divisions (B)(1) to (6) of section 4301.80
of the Revised Code. The public notice required under division (I) of
this section shall specify that the contract designates a community
entertainment district and describe the location of that district.
Except as provided in division (F) of section 4301.80 of the Revised
Code, an area designated as a community entertainment district under
a joint economic development district contract shall not lose its
designation even if the contract is canceled or terminated.
(8)
If any part of the district is located either within one-half of one
mile of a non-contracting municipal corporation or within an area
covered by or subject to a water or sewer service plan or agreement,
the contract shall include all of the following:
(a)
A preliminary estimate of the costs of providing public utility
services, facilities, and improvements to the district, prepared by a
professional engineer;
(b)
An analysis of the anticipated sources for funding the costs of the
public utilities infrastructure needed to serve the district and a
projection of when such funds will be available and when such costs
are likely to be incurred;
(c)
Evidence or estimates indicating that the construction of the public
utility infrastructure needed to serve at least some portion of the
district will be completed within five years after the creation of
the district.
(G)
The contract creating a joint economic development district shall
continue in existence throughout its term and shall be binding on the
contracting parties and on any parties succeeding to the contracting
parties, whether by annexation, merger, or consolidation. Except as
provided in division (H) of this section, the contract may be
amended, renewed, or terminated with the approval of the contracting
parties or any parties succeeding to the contracting parties. If the
contract is amended to add or remove an area to or from an existing
district, the amendment shall be adopted in the manner prescribed
under division (L) of this section.
(H)
If two or more contracting parties previously have entered into a
separate contract for utility services, then amendment, renewal, or
termination of the separate contract for utility services shall not
constitute any part of the consideration for the contract creating a
joint economic development district. A contract creating a joint
economic development district shall be rebuttably presumed to violate
this division if it is entered into within two years prior or five
years subsequent to the amendment, renewal, or termination of a
separate contract for utility services that two or more contracting
parties previously have entered into. The presumption stated in this
division may be rebutted by clear and convincing evidence of both of
the following:
(1)
That other substantial consideration existed to support the contract
creating a joint economic development district;
(2)
That the contracting parties entered into the contract creating a
joint economic development district freely and without duress or
coercion related to the amendment, renewal, or termination of the
separate contract for utility services.
A
contract creating a joint economic development district that violates
this division is void and unenforceable.
(I)(1)
Before the legislative authority of any of the contracting parties
adopts an ordinance or resolution approving a contract to create a
district, the legislative authority of each of the contracting
parties shall hold a public hearing concerning the contract and
district. Each legislative authority shall provide at least thirty
days' public notice of the time and place of the public hearing in a
newspaper of general circulation in the municipal corporation,
township, or county, as applicable. During the thirty-day period
prior to the public hearing and until the date that an ordinance or
resolution is adopted under division (K) of this section to approve
the joint economic development district contract, all of the
following documents shall be available for public inspection in the
office of the clerk of the legislative authority of a municipal
corporation and county that is a contracting party and in the office
of the fiscal officer of a township that is a contracting party:
(a)
A copy of the contract creating the district, including the economic
development plan for the district and the schedule for the provision
of new, expanded, or additional services, facilities, or improvements
described in division (F)(3) of this section;
(b)
A description of the area or areas to be included in the district,
including a map in sufficient detail to denote the specific
boundaries of the area or areas and to indicate any zoning
restrictions applicable to the area or areas, and the parcel number,
provided for under section 319.28 of the Revised Code, of any parcel
located within the boundaries of the joint economic development
district and excluded from the district under division (E)(2) of this
section;
(c)
If the contract authorizes the board of directors of the district to
adopt a resolution to levy an income tax within the district or
within portions of the district, a schedule for the collection of the
tax.
(2)
At least thirty days before the first public hearing is to be held by
one or more legislative authorities on a proposed district, notice
shall be sent in writing to each non-contracting municipal
corporation that is located within one-half of one mile of the
proposed district or that is identified in a water or sewer service
plan or agreement as a future provider of water or sewer services to
all or part of the proposed district.
(3)
A public hearing held under this division shall allow for public
comment and recommendations on the contract and district. The
contracting parties may include in the contract any of those
recommendations prior to approval of the contract.
(J)(1)
Before any of the contracting parties approves a contract under
division (K) of this section, the contracting parties shall circulate
one or more petitions to record owners of real property located
within the proposed joint economic development district and owners of
businesses operating within the proposed district. The petitions
shall state that all of the documents described in divisions
(I)(1)(a) to (c) of this section are available for public inspection
in the office of the clerk of the legislative authority of each
municipal corporation and county that is a contracting party or the
office of the fiscal officer of each township that is a contracting
party. The petitions shall clearly indicate that, by signing the
petition, the record owner or owner consents to the proposed joint
economic development district.
A
contracting party may send written notice of the petitions by
certified mail with return receipt requested to the last known
mailing addresses of any or all of the record owners of real property
located within the proposed district or the owners of businesses
operating within the proposed district. The contracting parties shall
equally share the costs of complying with this division.
(2)
If any portion of property located within the proposed joint economic
development district is also either located within one-half of one
mile of a non-contracting municipal corporation or covered by or
subject to a water or sewer service plan or agreement under which a
non-contracting municipal corporation is identified as a future
provider of water or sewer services to all or part of the proposed
district, then that property and any property contiguous to that
property if owned by the same person shall be excluded from the joint
economic development district unless the owner of the property signs
the petition.
(K)(1)
After the public hearings required under division (I) of this section
have been held and the petitions described in division (J) of this
section have been signed by the majority of the record owners of real
property located within the proposed joint economic development
district and by a majority of the owners of businesses, if any,
operating within the proposed district, each contracting party may
adopt an ordinance or resolution approving the contract to create a
joint economic development district. Not later than ten days after
all of the contracting parties have adopted ordinances or resolutions
approving the district contract, each contracting party shall give
notice of the proposed district to all of the following:
(a)
Each record owner of real property to be included in the district and
in the territory of that contracting party who did not sign the
petitions described in division (J) of this section;
(b)
An owner of each business operating within the district and in the
territory of that contracting party no owner of which signed the
petitions described in division (J) of this section.
(2)
Such notices shall be given by certified mail and shall specify that
the property or business is located within an area to be included in
the district and that all of the documents described in divisions
(I)(1)(a) to (c) of this section are available for public inspection
in the office of the clerk of the legislative authority of each
municipal corporation and county that is a contracting party or the
office of the fiscal officer of each township that is a contracting
party. The contracting parties shall equally share the costs of
complying with division (K) of this section.
(L)(1)
The contracting parties may amend the joint economic development
district contract to add any area that was not originally included in
the district if the area satisfies the criteria prescribed under
division (E) of this section. The contracting parties may also amend
the district contract to remove any area originally included in the
district or exclude one or more parcels located within the district
pursuant to division (E)(2) of this section.
(2)
An amendment adding an area to a district, removing an area from the
district, or excluding one or more parcels from the district may be
approved only by a resolution or ordinance adopted by each of the
contracting parties. The contracting parties shall conduct public
hearings on the amendment and provide notice in the manner required
under division (I) of this section for original contracts. The
contracting parties shall make available for public inspection a copy
of the amendment, a description of the area to be added, removed, or
excluded to or from the district, and a map of that area in
sufficient detail to denote the specific boundaries of the area and
to indicate any zoning restrictions applicable to the area.
(3)
Before adopting a resolution or ordinance approving the addition of
an area to the district, the contracting parties shall circulate
petitions to the record owners of real property located within the
proposed addition to the district and owners of businesses operating
within the proposed addition to the district in the same manner
required under division (J) of this section for original contracts.
The contracting parties may notify such record owners of real
property and owners of businesses that the petitions are available
for signing in the same manner provided by that division. The
contracting parties shall equally share the costs of complying with
this division.
(4)
The contracting parties to a joint economic development district may
vote to approve an amendment to the district contract under this
division after the public hearings required under division (L)(2) of
this section are completed and, if the amendment adds an area or
areas to the district, the petitions required under division (L)(3)
of this section have been signed by the majority of record owners of
real property located within the area or areas added to the district
and by a majority of the owners of businesses, if any, operating
within the proposed addition to the district.
(5)
Not later than ten days after all of the contracting parties have
adopted ordinances or resolutions approving an amendment adding one
or more areas to the district, each contracting party shall give
notice of the addition to all of the following:
(a)
Each record owner of real property to be included in the addition to
the district and in the territory of that contracting party who did
not sign the petitions described in division (L)(3) of this section;
(b)
An owner of each business operating within the addition to the
district and in the territory of that contracting party no owner of
which signed the petitions described in division (L)(3) of this
section.
The
contracting parties shall equally share the costs of complying with
division (L)(5) of this section.
(M)(1)
A board of township trustees that is a party to a contract creating a
joint economic development district may choose not to submit its
resolution approving the contract to the electors of the township if
all of the following conditions are satisfied:
(a)
The resolution has been approved by a unanimous vote of the members
of the board of township trustees or, if a county is one of the
contracting parties under division (D) of this section, the
resolution has been approved by a majority vote of the members of the
board of township trustees;
(b)
The contracting parties have circulated petitions as required under
division (J) of this section and obtained the signatures required
under division (L) of this section;
(c)
The territory to be included in the proposed district is zoned in a
manner appropriate to the function of the district.
(2)
If the board of township trustees has not invoked its authority under
division (M)(1) of this section, the board, at least ninety days
before the date of the election, shall file its resolution approving
the district contract with the board of elections for submission to
the electors of the township for approval at the next succeeding
general, primary, or special election.
(3)
Any contract creating a district in which a board of township
trustees is a party shall provide that the contract is not effective
before the thirty-first day after its approval, including approval by
the electors of the township if required by this section.
(4)
If the board of township trustees invokes its authority under
division (M)(1) of this section and does not submit the district
contract to the electors for approval, the resolution of the board of
township trustees approving the contract is subject to a referendum
of the electors of the township when requested through a petition.
When signed by ten per cent of the number of electors in the township
who voted for the office of governor at the most recent general
election, a referendum petition asking that the resolution be
submitted to the electors of the township may be presented to the
board of township trustees. Such a petition shall be presented within
thirty days after the board of township trustees adopts the
resolution approving the district contract. The board of township
trustees shall, not later than four p.m. of the tenth day after
receipt of the petition, certify the text of the resolution to the
board of elections. The board of elections shall submit the
resolution to the electors of the township for their approval or
rejection at the next general, primary, or special election occurring
at least ninety days after certification of the resolution.
(N)
The ballot respecting a resolution to create a district or a
referendum of such a resolution shall be in the following form:
"Shall
the resolution of the board of township trustees approving the
contract with
...............
(here insert name of every other contracting party) for the creation
of a joint economic development district be approved?
FOR
THE RESOLUTION AND CONTRACT
AGAINST
THE RESOLUTION AND CONTRACT"
If
a majority of the electors of the township voting on the issue vote
for the resolution and contract, the resolution shall become
effective immediately and the contract shall go into effect on the
thirty-first day after the election or thereafter in accordance with
terms of the contract.
(O)
Upon the creation of a district under this section, one of the
contracting parties shall file a copy of each of the following
documents with the director of
housing
and
development:
(1)
All of the documents described in divisions (I)(1)(a) to (c) of this
section;
(2)
Certified copies of the ordinances and resolutions of the contracting
parties relating to the contract and district;
(3)
Documentation from each contracting party that the public hearings
required by division (I) of this section have been held, the date of
the hearings, and evidence that notice of the hearings was published
as required by that division;
(4)
A copy of the signed petitions required under divisions (J) and (K)
of this section.
(P)
A board of directors shall govern each district created under this
section.
(1)
If there are businesses operating and persons employed within the
district, the board shall be composed of the following members:
(a)
One member representing the municipal corporations that are
contracting parties;
(b)
One member representing the townships that are contracting parties;
(c)
One member representing the owners of businesses operating within the
district;
(d)
One member representing the persons employed within the district;
(e)
One member representing the counties that are contracting parties,
or, if no contracting party is a county, one member selected by the
members described in divisions (P)(1)(a) to (d) of this section.
The
members of the board shall be appointed as provided in the district
contract. Of the members initially appointed to the board, the member
described in division (P)(1)(a) of this section shall serve a term of
one year; the member described in division (P)(1)(b) of this section
shall serve a term of two years; the member described in division
(P)(1)(c) of this section shall serve a term of three years; and the
members described in divisions (P)(1)(d) and (e) of this section
shall serve terms of four years. Thereafter, terms for each member
shall be for four years, each term ending on the same day of the same
month of the year as did the term that it succeeds. A member may be
reappointed to the board, but no member shall serve more than two
consecutive terms on the board.
The
member described in division (P)(1)(e) of this section shall serve as
chairperson of the board described under division (P)(1) of this
section.
(2)
If there are no businesses operating or persons employed within the
district, the board shall be composed of the following members:
(a)
One member representing the municipal corporations that are
contracting parties;
(b)
One member representing the townships that are contracting parties;
(c)
One member representing the counties that are contracting parties, or
if no contracting party is a county, one member selected by the
members described in divisions (P)(2)(a) and (b) of this section.
The
members of the board shall be appointed as provided in the district
contract. Of the members initially appointed to the board, the member
described in division (P)(2)(a) of this section shall serve a term of
one year; the member described in division (P)(2)(b) of this section
shall serve a term of two years; and the member described in division
(P)(2)(c) of this section shall serve a term of three years.
Thereafter, terms for each member shall be for four years, each term
ending on the same day of the same month of the year as did the term
that it succeeds. A member may be reappointed to the board, but no
member shall serve more than two consecutive terms on the board.
The
member described in division (P)(2)(c) of this section shall serve as
chairperson of a board described under division (P)(2) of this
section.
(3)
A board described under division (P)(1) or (2) of this section has no
powers except as described in this section and in the contract
creating the district.
(4)
Membership on the board of directors of a joint economic development
district created under this section is not the holding of a public
office or employment within the meaning of any section of the Revised
Code prohibiting the holding of other public office or employment.
Membership on such a board is not a direct or indirect interest in a
contract or expenditure of money by a municipal corporation,
township, county, or other political subdivision with which a member
may be affiliated. Notwithstanding any provision of law to the
contrary, no member of a board of directors of a joint economic
development district shall forfeit or be disqualified from holding
any public office or employment by reason of membership on the board.
(5)
The board of directors of a joint economic development district is a
public body for the purposes of section 121.22 of the Revised Code.
Chapter 2744. of the Revised Code applies to such a board and the
district.
(Q)(1)
On or before the date occurring six months after the effective date
of the district contract, an owner of a business operating within the
district may, on behalf of the business and its employees, file a
complaint with the court of common pleas of the county in which the
majority of the territory of the district is located requesting
exemption from any income tax imposed by the board of directors of
the district under division (F)(5) of this section if all of the
following apply:
(a)
The business operated within an unincorporated area of the district
before the effective date of the district contract;
(b)
No owner of the business signed a petition described in division (J)
of this section;
(c)
Neither the business nor its employees has derived or will derive any
material benefit from the new, expanded, or additional services,
facilities, or improvements described in the economic development
plan for the district, or the material benefit that has, or will be,
derived is negligible in comparison to the income tax revenue
generated from the net profits of the business and the income of
employees of the business.
The
legislative authority of each contracting party shall be made a party
to the proceedings and the business owner filing the complaint shall
serve notice of the complaint by certified mail to each such
contracting party. The court shall not accept any complaint filed
more than six months after the effective date of the district
contract.
(2)
Any or all of the contracting parties may submit a written answer to
the complaint submitted under division (Q)(1) of this section to the
court within thirty days after notice of the complaint was served
upon them. Such a contracting party shall submit to the court, along
with the answer, documentation sufficient to prove that the
contracting party sent copies of the answer to the owner of the
business who filed the complaint.
(3)
The court shall review each complaint submitted by a business owner
under division (Q)(1) of this section and each answer submitted by a
contracting party under division (Q)(2) of this section. The court
may make a determination on the record and the evidence thus
submitted, or it may conduct a hearing and request the presence of
the business owner and the contracting parties to present evidence
relevant to the complaint. The court shall make a determination on
the complaint not sooner than thirty days but not later than sixty
days after the complaint is filed by the business owner. The court
may make a determination more than sixty days after the complaint is
filed if the business owner and all contracting parties to the
district consent.
(4)
The court shall grant the exemption requested in the complaint if all
of the criteria described in divisions (Q)(1)(a) to (c) of this
section are met.
(5)
If all the criteria described in divisions (Q)(1)(a) to (c) of this
section are not met, the court shall deny the complaint and the
exemption.
(6)
The court shall send notice of the determination with respect to the
complaint to the owner of the business and each contracting party. If
the court grants the exemption, the net profits of the business from
operations within the district and the income of its employees from
employment within the district are exempt from any income tax imposed
by the board of directors of the district. If the court denies the
exemption, the net profits of the business and the income of its
employees shall be taxed according to the terms of the district
contract and any taxes, penalties, and interest accrued before the
date of the court's determination shall be paid in full. In addition,
no owner of the business may submit another complaint under division
(Q)(1) of this section for the same district contract. The court's
determination on a complaint filed under division (Q) of this section
is final.
(7)
Chapter 2506. of the Revised Code does not apply to the proceedings
described in division (Q) of this section.
(R)(1)
No proceeding pursuant to Chapter 709. of the Revised Code that
proposes the annexation to, merger of, or consolidation with a
municipal corporation of any unincorporated territory within a joint
economic development district may be commenced at any time between
the effective date of the contract creating the district and the date
the contract expires, terminates, or is otherwise rendered
unenforceable. This division does not apply if each board of township
trustees whose territory is included within the district and whose
territory is proposed to be annexed, merged, or consolidated adopts a
resolution consenting to the commencement of the proceeding. Each
such board of township trustees shall file a copy of the resolution
with the clerk of the legislative authority of each county within
which a contracting party is located.
(2)
The contract creating a joint economic development district may
prohibit any annexation proceeding by a contracting municipal
corporation of any unincorporated territory within the district or
zone beyond the period described in division (R)(1) of this section.
(3)
No contracting party is divested or relieved of its rights or
obligations under the contract creating a joint economic development
district because of annexation, merger, or consolidation.
(S)
Contracting parties may enter into agreements pursuant to the
contract creating a joint economic development district with respect
to the substance and administration of zoning and other land use
regulations, building codes, permanent public improvements, and other
regulatory and proprietary matters determined to be for a public
purpose. No contract, however, shall exempt the territory within the
district from the procedures of land use regulation applicable
pursuant to municipal corporation, township, and county regulations,
including, but not limited to, zoning procedures.
(T)
The powers granted under this section are in addition to and not in
the derogation of all other powers possessed by or granted to
municipal corporations, townships, and counties pursuant to law.
(1)
When exercising a power or performing a function or duty under a
contract entered into under this section, a municipal corporation may
exercise all the powers of a municipal corporation, and may perform
all the functions and duties of a municipal corporation, within the
district, pursuant to and to the extent consistent with the contract.
(2)
When exercising a power or performing a function or duty under a
contract entered into under division (D) of this section, a county
may exercise all of the powers of a county, and may perform all the
functions and duties of a county, within the district pursuant to and
to the extent consistent with the contract.
(3)
When exercising a power or performing a function or duty under a
contract entered into under this section, a township may exercise all
the powers of a township, and may perform all the functions and
duties of a township, within the district, pursuant to and to the
extent consistent with the contract.
(U)
No political subdivision shall grant any tax exemption under Chapter
1728. or section 3735.67, 5709.62, 5709.63, or 5709.632 of the
Revised Code on any property located within the district without the
consent of all the contracting parties. The prohibition against
granting a tax exemption under this section does not apply to any
exemption filed, pending, or approved before the effective date of
the contract entered into under this section.
Sec.
902.04.
(A)
An issuer may from time to time issue bonds to carry out the lawful
purposes set forth in this chapter including, but not limited to, the
purchase of loans or other evidence of debt from and the making of
loans to or through lending institutions, the payment of the costs of
insurance, letters of credit, certificates of deposit, and purchase
agreements related to the bonds or loans, underwriting, legal,
accounting, financial consulting, rating, printing, and other
services relating to the issuance and sale of the bonds, fees of any
trustee, paying agent, bond registrar, depository, transfer agent,
and authenticating agent, interest on the bonds, establishment of
reserve funds securing the bonds, and any other costs reasonably
related to the issuance, sale, marketing, servicing, insuring,
guaranteeing, and otherwise securing of the bonds. Any issuer may
from time to time, whenever it considers refunding to be expedient,
issue bonds to refund any bonds issued under this chapter whether the
bonds to be refunded have or have not matured, and may issue bonds
partly to refund bonds then outstanding and partly for any other
authorized purpose. The terms of the issuance and sale of refunding
bonds shall be as provided in this chapter for an original issue of
bonds.
(B)
Bonds, and the issuance of bonds, pursuant to this chapter need not
comply with any other law applicable to the issuance of bonds. The
deposit, application, safeguarding, and investment of funds of an
issuer received or held under bond proceedings of the issuer shall
not be subject to Chapters 131. and 135. of the Revised Code.
(C)(1)
Bonds issued pursuant to this chapter do not constitute a debt, or
the pledge of the faith and credit, of the state or any political
subdivision thereof, and the holders or owners of such bonds have no
right to have taxes levied by the general assembly or taxing
authority of any political subdivision for the payment of the
principal thereof or interest thereon. Moneys raised by taxation
shall not be obligated or pledged for the payment of principal of or
interest on such bonds, but such bonds shall be payable solely from
the revenues and security interests pledged for their payment as
authorized by this chapter, unless bonds are issued in anticipation
of the issuance of or are refunded by refunding bonds issued pursuant
to this chapter, which refunding bonds shall be payable solely from
revenues and security interests pledged for their payment as
authorized by this chapter. Bond anticipation notes may be secured
solely or additionally by a covenant of the issuer that it will do
all things necessary for the issuance of the bonds anticipated or
renewal notes in appropriate amount and either exchange such bonds or
renewal notes for such notes or apply the proceeds therefrom to the
extent necessary to make full payment of the principal of and
interest on such notes.
(2)
Any pledge of revenues to the payment of bonds is valid and binding
from the time the pledge is made and the revenues so pledged and
thereafter received by the issuer are immediately subject to the lien
of such pledge without any separation or physical delivery thereof,
or further act, and the lien of any such pledge is valid and binding
as against all parties having claims of any kind in tort, contract,
or otherwise against the issuer, irrespective of whether such parties
have notice thereof, and creates a perfected security interest for
all purposes of Chapter 1309. of the Revised Code. Neither the
resolution or ordinance nor any trust agreement or indenture by which
a pledge is created need be filed or recorded except in the records
of the issuer.
(3)
All bonds shall contain on the face thereof a statement to the effect
that the bonds, as to both principal and interest, are not debts of
the state or any political subdivision thereof, but are payable
solely from the revenues and security interests pledged for their
payment.
(D)(1)
The bonds shall be authorized by one or more resolutions or
ordinances of the issuing authority, shall bear such date or dates,
and shall mature at such time or times, not exceeding forty years
from the date of issue, and have such redemption and purchase
provisions as are authorized by or pursuant to such resolutions or
ordinances. The bonds shall bear interest at such rate or rates, or
at a variable rate or rates, as provided in or authorized by or
pursuant to such resolutions or ordinances. The bonds shall be in
such denominations, be in such form, either coupon, registered or
book entry, carry such registration privileges, be payable in such
medium of payment, at such place or places, and be subject to such
terms of redemption as the issuing authority may authorize. The bonds
may be sold by the issuing authority at public or private sale, at
not less than such price or prices as the issuer determines.
Notwithstanding any other provision of this chapter or Chapter 165.,
761., or 1724. of the Revised Code, the commission shall have
exclusive power to authorize the issuance and sale of bonds for
agricultural purposes under a composite financing arrangement in
excess of five hundred thousand dollars; provided that other issuers
may issue bonds under composite financing arrangements in such
greater amounts and at such times as shall be approved by the
commission.
(2)
Bonds issued by the agricultural financing commission shall be
executed by the chairperson or vice-chairperson of the commission,
manually or by a facsimile signature. The official seal of the
commission or a facsimile thereof shall be affixed thereto or printed
thereon, and any coupons attached thereto shall bear the signature or
facsimile signature of the chairperson or vice-chairperson of the
commission. Bonds and coupons issued by any other issuer shall be
executed by such officers, in manual or facsimile form, and bear such
official seal or a facsimile thereof, as shall be provided in the
bond proceedings for the bonds. In case any officer whose signature
or a facsimile of whose signature, appears on any bonds or coupons
ceases to be such officer before delivery of bonds, such signature or
facsimile is nevertheless sufficient for all purposes the same as if
the officer had remained in office until such delivery, and in case
the seal has been changed after a facsimile has been imprinted on
such bonds, such facsimile seal will continue to be sufficient for
all purposes. The bonds may also be issued and executed in book entry
form in such manner as is appropriate to that form. Neither the
members of the issuing authority nor any person executing the bonds
is liable personally on the bonds or subject to any personal
liability by reason of the issuance thereof.
(E)
If the issuer is a county or municipal corporation, then prior to the
delivery of bonds issued under authority of this section, the issuing
authority shall send written notice to the director of agriculture
and the director of
housing
and
development
either by certified mail or, if the issuing authority has record of
an internet identifier of record associated with the director, by
ordinary mail and by that internet identifier of record advising of
the proposed delivery of the bonds, the amount thereof, the proposed
lessee of the project or person to whom the proceeds of the bonds
will be loaned, and a general description of the project or projects
to be financed.
(F)
All bonds issued under authority of this chapter, regardless of form
or terms and regardless of any other law to the contrary, shall have
all qualities and incidents of negotiable instruments, subject to
provisions for registration, and may be issued in coupon, fully
registered, or other form, or any combination thereof, as the issuing
authority determines. Provision may be made for the registration of
any coupon bonds as to principal alone or as to both principal and
interest, and for the conversion into coupon bonds of any fully
registered bonds or bonds registered as to both principal and
interest.
(G)
As used in this section, "internet identifier of record"
has the same meaning as in section 9.312 of the Revised Code.
Sec.
991.02.
(A)
There is hereby created the Ohio expositions commission, which shall
consist of the following fifteen members: nine members appointed by
the governor with the advice and consent of the senate; the director
of
housing
and
development,
the director of natural resources, and the director of agriculture,
or their designated representatives, who shall be ex officio members
with voting rights of the commission; the dean of the college of
food, agricultural, and environmental sciences of the Ohio state
university as a nonvoting, ex officio member of the commission; and
the chairperson of the standing committee in the house of
representatives to which matters dealing with agriculture are
generally referred and the chairperson of the standing committee in
the senate to which matters dealing with agriculture are generally
referred, who shall be nonvoting members. If the senate is not in
session, recess appointments shall be made by the governor.
(B)
Of the nine members of the commission appointed by the governor, not
more than five shall be from one political party, at least three
members shall receive the major portion of their income from farming,
and at least one member shall, at the time of appointment, be a
member of the board of directors of an agricultural society that was
organized in compliance with section 1711.01 or 1711.02 of the
Revised Code. Terms of office shall be for six years, commencing on
the second day of December and ending on the first day of December.
Each member shall hold office from the date of appointment until the
end of the term for which the member was appointed. Any member
appointed to fill a vacancy occurring prior to the expiration of the
term for which the member's predecessor was appointed shall hold
office for the remainder of that term. Any member shall continue in
office subsequent to the expiration date of the member's term until
the member's successor takes office, or until a period of sixty days
has elapsed, whichever occurs first.
The
term of each nonvoting, legislative member of the commission shall be
for two years or until the end of the member's legislative term,
whichever occurs first.
(C)
The commission shall annually, during the month of December, select
from among its members a chairperson, a vice-chairperson, who in the
absence of the chairperson shall carry out the chairperson's duties,
and a secretary, who may be a member or employee of the commission,
to record the minutes of its meetings and to carry out such other
duties as may be assigned by the commission, its chairperson, or its
vice-chairperson.
(D)
The director of agriculture, the director of natural resources, and
the director of
housing
and
development,
or their designated representatives, the dean of the college of food,
agricultural, and environmental sciences of the Ohio state
university, and the two legislators appointed to the commission, as
members of the commission shall serve without compensation.
(E)
Each of the members of the commission appointed by the governor shall
be paid the rate established pursuant to division (J) of section
124.15 of the Revised Code. All members of the commission 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)
The commission shall hold at least one regular meeting in each
quarter of each calendar year, and shall keep a record of its
proceedings, which shall be open to the public for inspection.
Special meetings may be called by the chairperson and shall be called
by the chairperson upon receipt of a written request therefor signed
by two or more members of the commission. Written notice of the time
and place of each meeting shall be sent to each member of the
commission. Six of the voting members of the commission shall
constitute a quorum.
(G)
The commission shall employ and prescribe the powers and duties of a
general manager who shall serve in the unclassified civil service at
a salary fixed pursuant to section 124.14 of the Revised Code. The
general manager may employ such assistant managers as the general
manager and the commission may approve. At no time shall such
assistant managers exceed four in number, one of whom shall be
appointed in the classified civil service. The general manager may,
subject to the approval of the commission, employ a fiscal officer
and such other officers, employees, and consultants with such powers
and duties as are necessary to carry out this chapter. With the
approval of the commission and in order to implement this chapter,
the general manager may employ and fix the compensation of seasonal
employees; these employees shall be in the unclassified civil
service, and the overtime pay requirements of section 124.18 of the
Revised Code do not apply to them. The general manager shall be
considered the appointing authority of the commission for purposes of
Chapter 124. of the Revised Code.
(H)
The governor may remove any appointed voting member of the commission
at any time for inefficiency, neglect of duty, or malfeasance in
office.
Sec.
1517.14.
(A)
The director of natural resources may create wild, scenic, and
recreational rivers. The chief of the division of natural areas and
preserves shall supervise, operate, protect, and maintain wild,
scenic, and recreational rivers so created. In creating wild, scenic,
and recreational rivers, the director shall classify each such
watercourse as either a wild river, a scenic river, or a recreational
river. The chief may prepare and maintain a plan for the
establishment, development, use, and administration of those rivers
as a part of the comprehensive state plans for water management and
outdoor recreation. The chief, with the approval of the director, may
cooperate with federal agencies administering any federal program
concerning wild, scenic, or recreational river systems.
(B)
The director may propose to create a wild, scenic, or recreational
river that consists of a part or parts of any watercourse in this
state that in the director's judgment possesses water conservation,
scenic, fish, wildlife, historic, or outdoor recreation values that
should be preserved.
(C)(1)
The director shall publish the intention to declare a watercourse a
wild, scenic, or recreational river at least once in a newspaper of
general circulation in each county, any part through which the
watercourse flows. The director also shall send written notice of the
intention to the legislative authority of each county, township, and
municipal corporation and to each conservancy district established
under Chapter 6101. of the Revised Code, any part through which the
watercourse flows, and to the director of transportation, the
director of
housing
and
development,
the director of administrative services, and the director of
environmental protection. The notices shall include a copy of a map
and description of the watercourse to be designated.
(2)
The director of natural resources shall post the intention to declare
a watercourse a wild, scenic, or recreational river on the division
of natural areas and preserves' web site on the date of the initial
publication under division (C)(1) of this section.
(3)
Any person having an interest in the proposed declaration may file
written comments to the proposal within sixty days of the last date
of publication or dispatch of written notice as required under
division (C)(1) of this section. The director shall post on the
division's web site the last date by which written comments may be
filed.
(4)
After sixty days from the last date of publication or dispatch of
written notice as required under division (C)(1) of this section, the
director may enter a declaration in the director's journal that the
watercourse is a wild river, scenic river, or recreational river.
When so entered, the watercourse is a wild, scenic, or recreational
river, as applicable. The director, after sixty days' notice as
prescribed in this section, may terminate the status of a watercourse
as a wild river, scenic river, or recreational river by an entry in
the director's journal.
(D)
Declaration of a watercourse as a wild, scenic, or recreational river
does not do either of the following:
(1)
Affect private property rights or authorize the director, chief of
the division of natural areas and preserves, or any governmental
agency or political subdivision to restrict the use of private land
adjacent to the river or to enter upon private land;
(2)
Expand or abridge the regulatory authority of any governmental agency
or political subdivision over the river.
(E)
The director may acquire real property or any estate, right, or
interest therein in order to provide for the protection and public
recreational use of a wild, scenic, or recreational river. The
director may enter into a lease or other agreement with a political
subdivision to administer all or part of any publicly owned land that
is administered by the division and that is within the watershed of a
wild, scenic, or recreational river.
(F)
A wild, scenic, or recreational river that was declared as such by
the director of natural resources under Chapter 1547. of the Revised
Code prior to
the effective date of this amendment
October
24, 2024,
retains its declaration as a wild, scenic, or recreational river for
purposes of sections 1517.14 to 1517.19 of the Revised Code on and
after that date.
Sec.
1551.01.
As
used in this chapter:
(A)
"Governmental agency" means the United States government or
any department, agency, or instrumentality thereof; any department,
agency, or instrumentality of a state government; any municipal
corporation, county, township, board of education, or other political
subdivision or any other body corporate and politic of a state; or
any agency, commission, or authority established under an interstate
compact or agreement.
(B)
"Energy resource development facility" means any energy
resource development, research, or conservation facility, including
pilot as well as demonstration facilities, and including undivided or
other interests therein, acquired or to be acquired, or constructed
or to be constructed under this chapter or Chapter 6121. or 6123. of
the Revised Code, or acquired or to be acquired, or constructed or to
be constructed by a governmental agency or person with all or a part
of the cost thereof being paid from a loan or grant under such
chapters, including all buildings and facilities that the director of
housing
and
development
determines necessary for the operation of the facility, together with
all property, rights, easements, and interests that may be required
for the operation of the facility, which facilities may include:
(1)
Any building, testing facility, testing device, or support facilities
which would provide experimental, demonstration, or testing
capabilities or services not otherwise available in this state and
which are necessary for the accomplishment of the purposes of this
chapter;
(2)
Any method, process, structure, or equipment that is used to store
coal, oil, natural gas, fuel for nuclear reactors, or any other form
of energy;
(3)
Any method, process, structure, or equipment that is used to recover
or convert coal, oil, natural gas, steam, or other form of energy
from property located within the state for the purpose of supplying
energy for utilization;
(4)
Any method, process, structure, or equipment that is designed to
result in more efficient recovery, conversion, or utilization of
energy resources within the state, including any scrap tire recovery
facility for which a registration certificate or permit has been
issued under section 3734.78 of the Revised Code;
(5)
Any improvement that is designed to improve the thermal efficiency of
a building or structure or reduce the fuel or power needed to heat,
cool, light, ventilate, or provide hot water in a building or
structure;
(6)
Any improvement designed to enable the substitution of coal or
alternate fuel, other than natural gas, for natural gas or a
petroleum fuel, or the conversion of coal to other fuels;
(7)
Any improvement designed to enable the combustion of high sulfur coal
in compliance with air or water pollution control or solid waste
disposal laws, including, but not limited to, any facility for
processing coal to remove sulfur before combustion of the coal, for
fluidized bed combustion, or for removal of the sulfur before the
products of combustion are emitted or discharged.
(C)
"Cost" as applied to an energy resource development
facility means the cost of acquisition and construction, the cost of
acquisition of all land, rights-of-way, property rights, easements,
franchise rights, and interests required for such acquisition and
construction, the cost of demolishing or removing any buildings or
structures on land so acquired, including the cost of acquiring any
lands to which such buildings or structures may be moved, the cost of
acquiring or constructing and equipping a principal office and
sub-offices of the department of
housing
and
development,
the cost of diverting highways, interchange of highways, access roads
to private property, including the cost of land or easements for such
access roads, the cost of public utility and common carrier
relocation or duplication, the cost of all machinery, furnishings,
and equipment, financing charges, interest prior to and during
construction and for no more than eighteen months after completion of
construction, engineering, expenses of research and development with
respect to the facility, legal expenses, plans, specifications,
surveys, studies, estimates of cost and revenues, working capital,
other expenses necessary or incident to determining the feasibility
or practicability of acquiring or constructing such facility,
administrative expense, and such other expense as may be necessary or
incident to the acquisition or construction of the facility, the
financing of such acquisition or construction, including the amount
authorized in the resolution of the Ohio water development authority
providing for the issuance of energy resource development revenue
bonds to be paid into any special funds from the proceeds of such
bonds, and the financing of the placing of such facility in
operation. Any obligation, cost, or expense incurred after August 26,
1975, by any governmental agency or person for surveys, borings,
preparation of plans and specifications, and other engineering
services, or any other cost described above, in connection with the
acquisition or construction of a facility may be regarded as a part
of the cost of such facility and may be reimbursed out of the
proceeds of energy resource development revenue bonds.
(D)
"Revenues" means all rentals and other charges received by
the Ohio water development authority for the use or services of any
energy resource development facility, any contract, gift, or grant
received with respect to any energy resource development facility,
and moneys received with respect to the lease, sublease, sale,
including installment sale or conditional sale, or other disposition
of an energy resource development facility, moneys received in
repayment of and for interest on any loans made by the authority to a
person or governmental agency, whether from the United States or any
department, administration, or agency thereof, or otherwise, proceeds
of energy resource development revenue bonds to the extent that the
use thereof for payment of principal of, premium, if any, or interest
on the bonds is authorized by the authority, proceeds from any
insurance, condemnation, or guaranty pertaining to a facility or
property mortgaged to secure bonds or pertaining to the financing of
a facility, and income and profit from the investment of the proceeds
of energy resource development revenue bonds or of any revenues.
(E)
"Construction," unless the context indicates a different
meaning or intent, includes construction, reconstruction,
enlargement, improvement, or providing furnishings or equipment.
(F)
"Energy resource development revenue bonds," unless the
context indicates a different meaning or intent, includes energy
resource development revenue bonds, energy resource development
revenue notes, and energy resource development revenue refunding
bonds.
(G)
"Energy" means work or heat that is, or can be, produced
from any fuel or source whatsoever.
(H)
"Energy audit" means any process by which energy usage or
costs of heating, cooling, lighting, and climate control in a
building or structure are determined.
(I)
"Energy conservation" means preservation of energy
resources by efficient utilization, and reduction of waste.
(J)
"Energy conservation measure" means any modification of a
building, structure, machine, appliance, vehicle, improvement, or
process in order to improve its efficiency of energy use or energy
costs.
(K)
"Fuel" means petroleum, crude oil, petroleum product, coal,
natural gas, synthetic natural or artificial gas, nuclear, or other
substance used primarily for its energy content.
(L)
"Net energy analysis" means the determination of the amount
of energy remaining after all energy outputs have been subtracted
from the energy inputs of a given system.
Sec.
1551.05.
The
department of
deveopment
housing
and development
shall:
(A)
Monitor and assess technological advancements in energy conservation
and development, and maintain to the extent practicable a capability
for independent technology assessment to support formulation of state
energy policy;
(B)
Review laws, rules, and state agency policies that affect energy
utilization, and recommend to the agencies and the general assembly
changes to achieve energy conservation and development;
(C)
Develop methods for the performance of energy audits of buildings and
structures and net energy analyses, employing whenever possible
existing knowledge and practices, in order to identify energy cost
savings to be realized through energy conservation measures, and
prepare or identify curricula or source materials for training of
persons conducting energy audits;
(D)
Implement a continuing public education effort designed to inform
individuals and organizations about specific and appropriate ways to
conserve energy;
(E)
Provide technical assistance, information on technological
advancements in energy production, use, and conservation, energy
efficiency information, recommendations to state agencies and local
governments, assistance in the identification, evaluation, and
implementation of measures to reduce energy consumption and waste,
and public information on energy conservation measures, criteria, and
alternatives to assist consumers in purchasing appliances, machinery,
power tools, and similar products;
(F)
Identify, project, and monitor reduction in energy demand due to
energy conservation measures in the industrial, commercial,
residential, transportation, and energy production sectors and the
state as a whole;
(G)
Annually apply for, receive, accept, and administer assistance on
behalf of the state pursuant to and in compliance with the "Energy
Policy and Conservation Act," 89 Stat. 871, 42 U.S.C.A. 6201, as
amended.
Sec.
1551.06.
The
department of
housing
and
development
shall be the coordinating agency responsible for involving all other
appropriate agencies of state government in developing programs to
conserve energy, and shall be responsible for minimizing duplication
of effort among state agencies and programs in the state.
All
state departments, agencies, institutions, universities, colleges,
authorities, boards, and commissions, and all political subdivisions
and quasi-governmental agencies of the state shall cooperate and
coordinate all such activities with the department to ensure orderly
and efficient administration and enforcement.
Sec.
1551.11.
(A)
To achieve the purposes of sections 1551.01 to 1551.25 of the Revised
Code, the director of
housing
and
development
may:
(1)
Identify, plan, organize, initiate, and sponsor studies, research,
and experimental, pilot, and demonstration facilities and projects
that would lead to the development and more efficient utilization of
present, new, or alternative energy sources in this state, to the
conservation of energy, to the attraction of federal and other
development funding in emerging and established national or state
priority areas, or to the enhancement of the economic development of
the state;
(2)
Promote, assist, and provide financial assistance for the development
of nonprofit corporations organized and established under Chapter
1702. of the Revised Code to further the purposes of this section;
(3)
Seek out, apply for, receive, and accept grants, gifts,
contributions, loans, and other assistance in any form from public
and private sources, including assistance from any governmental
agency;
(4)
Make grants under division (F) of section 1551.12 of the Revised Code
from funds that are appropriated by the general assembly and from
gifts or grants obtained under division (A)(3) of this section for
the purposes of developing, constructing, or operating experimental,
pilot, and demonstration facilities or programs which develop, test,
or demonstrate more efficient and environmentally acceptable methods
of extracting energy resources; new concepts, programs, or technology
for the conservation of energy; new concepts, programs, or technology
for the efficient and environmentally acceptable utilization of
present, new, or alternative energy sources; or concepts, programs,
or technology which develop resources of the state. Grants may be
made, without limitation, for projects and programs such as
experimental demonstrations of the use of Ohio coal in processes
which would facilitate its widespread use as a source of energy;
experimental demonstrations of new or improved coal, natural gas, and
natural petroleum extraction techniques and of reclamation techniques
at the extraction sites; experimental demonstrations or development
of solar heating and cooling and potentially energy-efficient
construction in public buildings, schools, offices, commercial
establishments, and residential homes; development of programs or
experimental demonstrations of the utilization of waste products in
energy production and mineral and energy conservation; and
development of programs or experimental demonstrations of
technologies which would permit utility pricing policies which may
reduce the consumer costs of energy.
(5)
Enter into agreements with persons and governmental agencies, in any
combination, for the purposes of this section.
(B)
Any materials or data submitted to, made available by or to, or
received by the director under division (A) of this section, division
(F) of section 1551.12, or division (B) of section 1551.15 of the
Revised Code, and any information taken from those materials or data
for any purpose, to the extent that those materials or data consist
of trade secrets or other proprietary information, are not public
information or public documents and shall not be open to public
inspection.
(C)
The exercise by the director of the powers conferred by sections
1551.01 to 1551.25 of the Revised Code for the preservation or
creation of jobs and employment opportunities for the people of this
state through the development and efficient utilization of energy
resources of the state is in all respects for the benefit of the
people of the state, and is determined to be an essential government
function and public purpose of the state.
Sec.
1551.12.
The
director of
housing
and
development
may:
(A)
Seek, solicit, or acquire personal property or any estate, interest,
or right in real property, or services, funds, and other things of
value of any kind or character by purchase, lease, gift, grant,
contribution, exchange, or otherwise from any person or governmental
agency to be held, used, and applied in accordance with and for the
purposes of sections 1551.01 to 1551.25 of the Revised Code;
(B)
Contract for the operation of, and establish rules for the use of,
facilities over which the director has supervision or control, which
rules may include the limitation of ingress to or egress from such
facilities as may be necessary to maintain the security of such
facilities and to provide for the safety of those on the premises of
such facilities;
(C)
Purchase such fire and extended coverage insurance and insurance
protecting against liability for damage to property or injury to or
death of persons as the director may consider necessary and proper
under sections 1551.01 to 1551.25 of the Revised Code;
(D)
Sponsor, conduct, assist, and encourage conferences, seminars,
meetings, institutes, and other forms of meetings; authorize,
prepare, publish, and disseminate any form of studies, reports, and
other publications; originate, prepare, and assist proposals for the
expenditure or granting of funds by any governmental agency or person
for purposes of energy resource development; and investigate,
initiate, sponsor, participate in, and assist with cooperative
activities and programs involving governmental agencies and other
entities of other states and jurisdictions;
(E)
Do all acts and things necessary and proper to carry out the powers
granted and the duties imposed by sections 1551.01 to 1551.25 of the
Revised Code;
(F)
Make grants of funds to any person, organization, or governmental
agency of the state for the furnishing of goods or performance of
services.
Any
person or governmental agency that receives funds from the department
of
housing
and
development,
or utilizes the facilities of the department under sections 1551.01
to 1551.25 of the Revised Code shall agree in writing that all
know-how, trade secrets, and other forms of property, rights, and
interest arising out of developments, discoveries, or inventions,
including patents, copyrights, or royalties thereon, which result in
whole or in part from research, studies, or testing conducted by use
of such funds or facilities shall be the sole property of the
department, except as may be otherwise negotiated and provided by
contract in advance of such research, studies, or testing. However,
such exceptions do not apply to the director or employees of the
department participating in or performing research, tests, or
studies.
Rights
retained by the department may be assigned, licensed, transferred,
sold, or otherwise disposed of, in whole or in part, to any person or
governmental agency. Any and all income, royalties, or proceeds
derived or retained from such dispositions shall be paid to the state
and credited to the general revenue fund.
Any
instrument by which real property is acquired pursuant to this
section shall identify the agency of this state that has the use and
benefit of the real property as specified in section 5301.012 of the
Revised Code.
Sec.
1551.15.
(A)
All general revenue fund moneys required by the department of
housing
and
development
for purposes of sections 1551.01 to 1551.25 of the Revised Code are
subject to appropriation by the general assembly.
(B)
The director of
housing
and
development
may enter into agreements, make grants, or enter into contracts for
the purposes of effecting the construction and operation in this
state of experimental, pilot, or demonstration energy resource
development facilities. Before making grants or entering contracts,
the director shall determine that all of the following criteria are
met:
(1)
The urgency of public need for the potential results of the
experimental, pilot, or demonstration project is high, and there is
little likelihood that similar results would be achieved in this
state in a timely manner in the absence of state assistance;
(2)
The potential opportunities for private interests to recapture the
investment in the undertaking through the normal commercial
exploitation of proprietary knowledge appear to be inadequate to
encourage timely results in this state;
(3)
The extent of the problems treated and the objectives sought by the
project are consistent with the purposes of sections 1551.01 to
1551.25 of the Revised Code and of general significance to the state.
This
determination by the director shall include the facts or reasons
justifying it and shall be journalized by the director.
(C)
The director may use funds as appropriated, donated, granted, or
received for any of the following purposes:
(1)
Construction and related architectural or engineering studies or
purchase of physical plant and equipment for an experimental, pilot,
or demonstration energy resource development facility;
(2)
Acquisition and improvement of land, construction of roads, and
provision of other public facilities incidental and necessary to the
accomplishment of experimental, pilot, or demonstration energy
resource development facilities;
(3)
Operation of an energy resource development experimental, pilot, or
demonstration project or facility, which could include but not be
limited to labor, feedstocks, and repair or replacement parts;
(4)
Purchase of all or a portion of the usable output of energy resource
development experimental, pilot, or demonstration projects and the
disposition of this output for use in the facilities of governmental
agencies.
(D)
Each grant made pursuant to this section shall be accomplished
through written agreements between the department and the person or
governmental agency which would effect the construction and operation
of the project or facility, and between the department and the
persons and governmental agencies which would share the expenses and
costs of the project or facility. In addition to such other terms as
may be required by law or advised by counsel, each agreement shall
provide for each of the following conditions:
(1)
The limitation of the department's financial obligations in the
project or facility to a specified dollar amount which shall not
exceed one-third of the total costs of the project or facility;
(2)
The financial participation in the project or facility by the federal
government or its agencies, by private corporations doing business in
this state, by local governmental agencies, or by other
organizations;
(3)
The disposition of the assets of the project or facility, should it
be terminated or abandoned, in such manner that the department shall
be repaid in the same proportion as its share in the total of moneys,
property, or other assets expended, contributed, or invested in the
project or facility;
(4)
The criteria for the identification if and when the project or
facility is commercially viable through the profitable disposition of
its output;
(5)
The termination of the department's financial support at such time
the project or facility is commercially viable and the repayment of
the department through the future profits, if any, of the project or
facility.
Sec.
1551.19.
The
director of
housing
and
development
shall adopt, consistent with the "Energy Policy and Conservation
Act of 1975," 89 Stat. 871, 42 U.S.C.A. 6291, as amended:
(A)
Mandatory lighting efficiency rules for all existing public buildings
above a minimum size established by the director which are owned,
leased, or controlled by the state, except by state colleges and
universities;
(B)
Lighting efficiency recommendations for all other existing public
buildings larger than the minimum size established by the director,
including those which are owned, leased, or controlled by state
colleges and universities.
For
the purposes of this section, "public building" means any
building that is open to the public during normal business hours.
Sec.
1551.20.
(A)
As used in this section, "solar or wind energy system"
means any method used directly to provide space heating or cooling,
hot water, industrial process heat, or mechanical or electric power
by the collection, conversion, or storage of solar or wind energy
including, but not limited to, active or passive solar systems. It
does not include any equipment that is part of a conventional system
for such purposes, that is, a system that does not use solar or wind
energy; nor does it include a roof or any windows or walls that would
be contained in a similar structure not designed or modified to use
solar energy for space heating or cooling, except for those
modifications to the design or construction of such roof, windows, or
walls that are necessary to their improved use to capture solar
energy for space heating or cooling.
As
used in this section, "hydrothermal energy system" means
any method used directly to provide a heating or cooling effect by
causing a thermal exchange with the earth utilizing any water source,
including ground or surface water by use of appropriate heat exchange
equipment.
(B)
The director of
housing
and
development
shall adopt rules in accordance with Chapter 119. of the Revised Code
establishing guidelines for identifying solar, wind, or hydrothermal
energy systems and components thereof, and guidelines for the safety
and thermal efficiency of such systems. The rules shall distinguish
such systems from conventional systems and components thereof, and
shall distinguish from conventional roof, window, or wall design or
construction those modifications to the design or construction of
roofs, windows, or walls that are necessary to their improved use to
capture solar energy for space heating or cooling. The rules shall
determine the eligibility of solar, wind, and hydrothermal energy
systems for the tax exemption under section 5709.53 of the Revised
Code.
(C)
At the request of any person who designs, manufactures, installs, or
constructs solar, wind, or hydrothermal energy systems, the director
shall review the detailed construction plans and design calculations
for any such system to determine whether the system complies with the
guidelines adopted under division (B) of this section. If the system
complies with the guidelines, the director shall enter the name of
the system on a list of solar, wind, or hydrothermal energy systems
eligible for the tax exemption under section 5709.53 of the Revised
Code.
(D)
At the request of any person who desires to design or install a
solar, wind, or hydrothermal energy system for
his
the person's
own use, the director shall review the plans for or a narrative
description of the system, and the list of components and materials
to be incorporated therein to determine whether the system complies
with the guidelines adopted under division (B) of this section. If
the system complies, the director shall issue a certificate to that
effect to the applicant.
Sec.
1551.311.
The
general assembly hereby finds and declares that the future of the
Ohio coal industry lies in the development of clean coal technology
and that the disproportionate economic impact on the state under
Title IV of the "Clean Air Act Amendments of 1990," 104
Stat. 2584, 42 U.S.C.A. 7651, warrants maximum federal assistance to
this state for such development. It is therefore imperative that the
department of
housing
and
development,
its Ohio coal development office, the Ohio coal industry, the Ohio
Washington office in the office of the governor, and the state's
congressional delegation make every effort to acquire any federal
assistance available for the development of clean coal technology,
including assisting entities eligible for grants in their
acquisition. The Ohio coal development agenda required by section
1551.34 of the Revised Code shall include, in addition to the other
information required by that section, a description of such efforts
and a description of the current status of the development of clean
coal technology in this state and elsewhere.
Sec.
1551.32.
(A)
There is hereby established within the department of
housing
and
development
the Ohio coal development office whose purposes are to do all of the
following:
(1)
Encourage, promote, and support siting, financing, construction, and
operation of commercially available or scaled facilities and
technologies, including, without limitation, commercial-scale
demonstration facilities and, when necessary or appropriate to
demonstrate the commercial acceptability of a specific technology, up
to three installations within this state utilizing the specific
technology, to more efficiently produce, beneficiate, market, or use
Ohio coal;
(2)
Encourage, promote, and support the market acceptance and increased
market use of Ohio coal through technology and market development;
(3)
Assist in the financing of coal development facilities;
(4)
Encourage, promote, and support, in state-owned buildings,
facilities, and operations, use of Ohio coal and electricity sold by
utilities and others in this state that use Ohio coal for generation;
(5)
Improve environmental quality, particularly through cleaner use of
Ohio coal;
(6)
Assist and cooperate with governmental agencies, universities and
colleges, coal producers, coal miners, electric utilities and other
coal users, public and private sector coal development interests, and
others in achieving these purposes.
(B)
The office shall give priority to improvement or reconstruction of
existing facilities and equipment when economically feasible, to
construction and operation of commercial-scale facilities, and to
technologies, equipment, and other techniques that enable maximum use
of Ohio coal in an environmentally acceptable, cost-effective manner.
Sec.
1551.33.
(A)
The director of
housing
and
development
shall appoint and fix the compensation of the director of the Ohio
coal development office. The director shall serve at the pleasure of
the director of
housing
and
development.
(B)
The director of the office shall do all of the following:
(1)
Biennially prepare and maintain the Ohio coal development agenda
required under section 1551.34 of the Revised Code;
(2)
Propose and support policies for the office consistent with the Ohio
coal development agenda and develop means to implement the agenda;
(3)
Initiate, undertake, and support projects to carry out the office's
purposes and ensure that the projects are consistent with and meet
the selection criteria established by the Ohio coal development
agenda;
(4)
Actively encourage joint participation in and, when feasible, joint
funding of the office's projects with governmental agencies, electric
utilities, universities and colleges, other public or private
interests, or any other person;
(5)
Establish a table of organization for and employ such employees and
agents as are necessary for the administration and operation of the
office. Any such employees shall be in the unclassified service and
shall serve at the pleasure of the director of
housing
and
development.
(6)
Convene the technical advisory committee established under section
1551.35 of the Revised Code;
(7)
Review, with the assistance of the technical advisory committee,
proposed coal research and development projects as defined in section
1555.01 of the Revised Code, and coal development projects, submitted
to the office by public utilities for the purpose of section 4905.304
of the Revised Code. If the director and the advisory committee
determine that any such facility or project has as its purpose the
enhanced use of Ohio coal in an environmentally acceptable, cost
effective manner, promotes energy conservation, is cost effective,
and is environmentally sound, the director shall submit to the public
utilities commission a report recommending that the commission allow
the recovery of costs associated with the facility or project under
section 4905.304 of the Revised Code and including the reasons for
the recommendation.
(8)
Establish such policies, procedures, and guidelines as are necessary
to achieve the office's purposes.
(C)
With the approval of the director of
housing
and
development
,
the director of the office may exercise any of the powers and duties
that the director of
housing
and
development
considers appropriate or desirable to achieve the office's purposes,
including, but not limited to, the powers and duties enumerated in
sections 1551.11, 1551.12, and 1551.15 of the Revised Code.
Additionally,
the director of the office may make loans to governmental agencies or
persons for projects to carry out the office's purposes. Fees,
charges, rates of interest, times of payment of interest and
principal, and other terms, conditions, and provisions of the loans
shall be such as the director of the office determines to be
appropriate and in furtherance of the purposes for which the loans
are made. The mortgage lien securing any moneys lent by the director
of the office may be subordinate to the mortgage lien securing any
moneys lent or invested by a financial institution, but shall be
superior to that securing any moneys lent or expended by any other
person. The moneys used in making the loans shall be disbursed upon
order of the director of the office.
Sec.
1551.35.
(A)
There is hereby established a technical advisory committee to assist
the director of the Ohio coal development office in achieving the
office's purposes. The director of
housing
and
development
shall appoint to the committee one member of the public utilities
commission and one representative each of coal production companies,
the united mine workers of America, and electric utilities, as well
as two people with a background in coal research and development
technology, one of whom is employed at the time of the member's
appointment by a state university, as defined in section 3345.011 of
the Revised Code. The director of environmental protection shall
serve on the committee as an ex officio member. Any member of the
committee may designate in writing a substitute to serve in the
member's absence on the committee. The director of environmental
protection may designate in writing the chief of the air pollution
control division of the environmental protection agency to represent
the agency. Members shall serve on the committee at the pleasure of
their appointing authority. Members of the committee appointed by the
director of
housing
and
development,
when engaged in their official duties as members of the committee,
shall be compensated on a per diem basis in accordance with division
(J) of section 124.15 of the Revised Code, except that the member of
the public utilities commission and, while employed by a state
university, the member with a background in coal research, shall not
be so compensated. Members shall receive their actual and necessary
expenses incurred in the performance of their duties.
(B)
The technical advisory committee shall review and make
recommendations concerning the Ohio coal development agenda required
under section 1551.34 of the Revised Code, project proposals,
research and development projects submitted to the office by public
utilities for the purpose of section 4905.304 of the Revised Code,
proposals for grants, loans, and loan guarantees for purposes of
sections 1555.01 to 1555.06 of the Revised Code, and such other
topics as the director of the office considers appropriate.
(C)
The technical advisory committee may hold an executive session at any
regular or special meeting for the purpose of considering research
and development project proposals or applications for assistance
submitted to the Ohio coal development office under section 1551.33,
or sections 1555.01 to 1555.06, of the Revised Code, to the extent
that the proposals or applications consist of trade secrets or other
proprietary information.
Any
materials or data submitted to, made available to, or received by the
department of
housing
and
development
or the director of the Ohio coal development office in connection
with agreements for assistance entered into under this chapter or
Chapter 1555. of the Revised Code, or any information taken from
those materials or data for any purpose, to the extent that the
materials or data consist of trade secrets or other proprietary
information, are not public records for the purposes of section
149.43 of the Revised Code.
As
used in this division, "trade secrets" has the same meaning
as in section 1333.61 of the Revised Code.
Sec.
1555.02.
It
is hereby declared to be the public policy of this state through the
operations of the Ohio coal development office under this chapter to
contribute toward one or more of the following: to provide for the
comfort, health, safety, and general welfare of all employees and
other inhabitants of this state through research and development
directed toward the discovery of new technologies or the
demonstration or application of existing technologies to enable the
conversion or use of Ohio coal as a fuel or chemical feedstock in an
environmentally acceptable manner thereby enhancing the marketability
and fostering the use of this state's vast reserves of coal, to
assist in the financing of coal research and development and coal
research and development projects or facilities for persons doing
business in this state and educational and scientific institutions
located in this state, to create or preserve jobs and employment
opportunities or improve the economic welfare of the people of this
state, or to assist and cooperate with such persons and educational
and scientific institutions in conducting coal research and
development. In furtherance of this public policy, the Ohio coal
development office, with the advice of the technical advisory
committee created in section 1551.35 of the Revised Code and the
approval of the director of
housing
and
development,
may make loans, guarantee loans, and make grants to persons doing
business in this state or to educational or scientific institutions
located in this state for coal research and development projects by
such persons or educational or scientific institutions; may, with the
advice of the technical advisory committee and the approval of the
director of
housing
and
development,
request the issuance of coal research and development general
obligations under section 151.07 of the Revised Code to provide funds
for making such loans, loan guarantees, and grants; and may, with the
advice of the technical advisory committee and the approval of the
director of
housing
and
development,
expend moneys credited to the coal research and development fund
created in section 1555.15 of the Revised Code for the purpose of
making such loans, loan guarantees, and grants. Determinations by the
director of the Ohio coal development office that coal research and
development or a coal research and development facility is a coal
research and development project under this chapter and is consistent
with the purposes of Section 15 of Article VIII, Ohio Constitution,
and this chapter shall be conclusive as to the validity and
enforceability of the coal research and development general
obligations issued to finance such project and of the authorizations,
trust agreements or indentures, loan agreements, loan guarantee
agreements, or grant agreements, and other agreements made in
connection therewith, all in accordance with their terms.
Sec.
1555.03.
For
the purposes of this chapter, the director of the Ohio coal
development office may:
(A)
With the advice of the technical advisory committee created in
section 1551.35 of the Revised Code and the approval of the director
of
housing
and
development,
make loans, guarantee loans, and make grants to persons doing
business in this state or to educational or scientific institutions
located in this state for coal research and development projects by
any such person or educational or scientific institution and adopt
rules under Chapter 119. of the Revised Code for making such loans,
guarantees, and grants.
(B)
In making loans, loan guarantees, and grants under division (A) of
this section and section 1555.04 of the Revised Code, the director of
the office shall ensure that an adequate portion of the total amount
of those loans, loan guarantees, and grants, as determined by the
director with the advice of the technical advisory committee, is used
for conducting research on fundamental scientific problems related to
the utilization of Ohio coal and shall ensure, to the maximum
feasible extent, joint financial participation by the federal
government or other investors or interested parties in conjunction
with any such loan, loan guarantee, or grant. The director, in each
grant agreement or contract under division (A) of this section, loan
contract or agreement under this division or section 1555.04 of the
Revised Code, and contract of guarantee under section 1555.05 of the
Revised Code, shall require that the facility or project be
maintained and kept in good condition and repair by the person or
educational or scientific institution to whom the grant or loan was
made or for whom the guarantee was made.
(C)
From time to time, with the advice of the technical advisory
committee and the approval of the director of
housing
and
development,
request the issuance of coal research and development general
obligations under section 151.07 of the Revised Code, for any of the
purposes set forth in Section 15 of Article VIII, Ohio Constitution,
and subject to the limitations therein upon the aggregate total
amount of obligations that may be outstanding at any time.
(D)
Include as a condition of any loan, loan guarantee, or grant contract
or agreement with any such person or educational or scientific
institution that the director of the office receive, in addition to
payments of principal and interest on any such loan or service
charges for any such guarantee, as appropriate, as authorized by
Section 15 of Article VIII, Ohio Constitution, a reasonable royalty
or portion of the income or profits arising out of the developments,
discoveries, or inventions, including patents or copyrights, that
result in whole or in part from coal research and development
projects conducted under any such contract or agreement, in such
amounts and for such period of years as may be negotiated and
provided by the contract or agreement in advance of the making of the
grant, loan, or loan guarantee. Moneys received by the director of
the office under this section may be credited to the coal research
and development bond service fund or used to make additional loans,
loan guarantees, grants, or agreements under this section.
(E)
Employ managers, superintendents, and other employees and retain or
contract with consulting engineers, financial consultants, accounting
experts, architects, and such other consultants and independent
contractors as are necessary in the judgment of the director of the
office to carry out this chapter, and fix the compensation thereof.
(F)
Receive and accept from any federal agency, subject to the approval
of the governor, grants for or in aid of the construction or
operation of any coal research and development project or for coal
research and development, and receive and accept aid or contributions
from any source of money, property, labor, or other things of value,
to be held, used, and applied only for the purposes for which such
grants and contributions are made.
(G)
Purchase fire and extended coverage and liability insurance for any
coal research and development project, insurance protecting the
office and its officers and employees against liability for damage to
property or injury to or death of persons arising from its
operations, and any other insurance the director of the office
determines necessary or proper under this chapter. Any moneys
received by the director from the proceeds of any such insurance with
respect to a coal research and development project and any moneys
received by the director from the proceeds of any settlement,
judgment, foreclosure, or other insurance with respect to a coal
research and development project or facility shall be credited to the
coal research and development bond service fund.
(H)
In the exercise of the powers of the director of the office under
this chapter, call to the director's assistance, temporarily, from
time to time, any engineers, technical experts, financial experts,
and other employees in any state department, agency, or commission,
or in the Ohio state university, or other educational institutions
financed wholly or partially by this state for purposes of assisting
the director of the office with reviewing and evaluating applications
for financial assistance under this chapter, monitoring performance
of coal research and development projects receiving financial
assistance under this chapter, and reviewing and evaluating the
progress and findings of those projects. Such engineers, experts, and
employees shall not receive any additional compensation over that
which they receive from the department, agency, commission, or
educational institution by which they are employed, but they shall be
reimbursed for their actual and necessary expenses incurred while
working under the direction of the director.
(I)
Do all acts necessary or proper to carry out the powers expressly
granted in this chapter.
Sec.
1555.04.
(A)
With respect to coal research and development projects financed
wholly or partially from a loan or loan guarantee under this chapter,
the director of the Ohio coal development office, in addition to
other powers under this chapter, with the advice of the technical
advisory committee created in section 1551.35 of the Revised Code and
the approval of the director of
housing
and
development,
may enter into loan agreements, accept notes and other forms of
obligation to evidence such indebtedness and mortgages, liens,
pledges, assignments, or other security interests to secure such
indebtedness, which may be prior or subordinate to or on a parity
with other indebtedness, obligations, mortgages, pledges,
assignments, other security interests, or liens or encumbrances, and
take such actions as the director of the office considers appropriate
to protect such security and safeguard against losses, including,
without limitation, foreclosure and the bidding upon and purchase of
property upon foreclosure or other sale.
(B)
The authority granted by this section is cumulative and supplementary
to all other authority granted in this chapter. The authority granted
by this section does not alter or impair any similar authority
granted elsewhere in this chapter with respect to other projects.
Sec.
1555.05.
(A)
Subject to any limitations as to aggregate amounts thereof that may
from time to time be prescribed by the general assembly and to other
applicable provisions of this chapter, and subject to the
one-hundred-million-dollar limitation provided in Section 15 of
Article VIII, Ohio Constitution, the director of the Ohio coal
development office, on behalf of this state, with the advice of the
technical advisory committee created in section 1551.35 of the
Revised Code and the approval of the director of
housing
and
development,
may enter into contracts to guarantee the repayment or payment of the
unpaid principal amount of loans made to pay the costs of coal
research and development projects.
(B)
The contract of guarantee may make provision for the conditions of,
time for, and manner of fulfillment of the guarantee commitment,
subrogation of this state to the rights of the parties guaranteed and
exercise of such parties' rights by the state, giving the state the
option of making payment of the principal amount guaranteed in one or
more installments and, if deferred, to pay interest thereon from the
source specified in division (A) of this section, and any other terms
or conditions customary to such guarantees and as the director of the
office may approve, and may contain provisions for securing the
guarantee in the manner consistent with this section, covenants on
behalf of this state to issue obligations under section 1555.08 of
the Revised Code to provide moneys to fulfill such guarantees and
covenants, and covenants restricting the aggregate amount of
guarantees that may be contracted under this section and obligations
that may be issued under section 151.07 of the Revised Code, and
terms pertinent to either, to better secure the parties guaranteed.
(C)
The director of the office may fix service charges for making a
guarantee. Such charges shall be payable at such times and place and
in such amounts and manner as may be prescribed by the director.
Moneys received from such charges shall be credited to the coal
research and development bond service fund.
(D)
Any guaranteed parties under this section, by any suitable form of
legal proceedings and except to the extent that their rights are
restricted by the guarantee documents, may protect and enforce any
rights under the laws of this state or granted by such guarantee or
guarantee documents. Such rights include the right to compel the
performance of all duties of the office required by this section or
the guarantee or guarantee documents; and in the event of default
with respect to the payment of any guarantees, to apply to a court
having jurisdiction of the cause to appoint a receiver to receive and
administer the moneys pledged to such guarantee with full power to
pay, and to provide for payment of, such guarantee, and with such
powers, subject to the direction of the court, as are accorded
receivers in general equity cases, excluding any power to pledge or
apply additional revenues or receipts or other income or moneys of
this state. Each duty of the office and its director and employees
required or undertaken under this section or a guarantee made under
this section is hereby established as a duty of the office and of its
director and each such employee having authority to perform such
duty, specifically enjoined by the law resulting from an office,
trust, or station within the meaning of section 2731.01 of the
Revised Code. The persons who are at the time the director of the
office, or its employees, are not liable in their personal capacities
on any guarantees or contracts to make guarantees by the director.
Sec.
1555.06.
Upon
application by the director of the Ohio coal development office with
the approval of the director of
housing
and
development,
the controlling board, from appropriations available to the board,
may provide funds for surveys or studies by the office of any
proposed coal research and development project subject to repayment
by the office from funds available to it, within the time fixed by
the board. Funds to be repaid shall be charged by the office to the
appropriate coal research and development project and the amount
thereof shall be a cost of the project. This section does not
abrogate the authority of the controlling board to otherwise provide
funds for use by the office in the exercise of the powers granted to
it by this chapter.
Sec.
1555.08.
(A)
Subject to the limitations provided in Section 15 of Article VIII,
Ohio Constitution, the commissioners of the sinking fund, upon
certification by the director of the Ohio coal development office of
the amount of moneys or additional moneys needed in the coal research
and development fund for the purpose of making grants or loans for
allowable costs, or needed for capitalized interest, for funding
reserves, and for paying costs and expenses incurred in connection
with the issuance, carrying, securing, paying, redeeming, or
retirement of the obligations or any obligations refunded thereby,
including payment of costs and expenses relating to letters of
credit, lines of credit, insurance, put agreements, standby purchase
agreements, indexing, marketing, remarketing and administrative
arrangements, interest swap or hedging agreements, and any other
credit enhancement, liquidity, remarketing, renewal, or refunding
arrangements, all of which are authorized by this section, or
providing moneys for loan guarantees, shall issue obligations of the
state under this section in amounts authorized by the general
assembly; provided that such obligations may be issued to the extent
necessary to satisfy the covenants in contracts of guarantee made
under section 1555.05 of the Revised Code to issue obligations to
meet such guarantees, notwithstanding limitations otherwise
applicable to the issuance of obligations under this section except
the one-hundred-million-dollar limitation provided in Section 15 of
Article VIII, Ohio Constitution. The proceeds of such obligations,
except for the portion to be deposited in the coal research and
development bond service fund as may be provided in the bond
proceedings, shall as provided in the bond proceedings be deposited
in the coal research and development fund. The commissioners of the
sinking fund may appoint trustees, paying agents, and transfer agents
and may retain the services of financial advisors, accounting
experts, and attorneys, and retain or contract for the services of
marketing, remarketing, indexing, and administrative agents, other
consultants, and independent contractors, including printing
services, as are necessary in their judgment to carry out this
section.
(B)
The full faith and credit of the state of Ohio is hereby pledged to
obligations issued under this section. The right of the holders and
owners to payment of bond service charges is limited to all or that
portion of the moneys pledged thereto pursuant to the bond
proceedings in accordance with this section, and each such obligation
shall bear on its face a statement to that effect.
(C)
Obligations shall be authorized by resolution of the commissioners of
the sinking fund on request of the director of the Ohio coal
development office as provided in section 1555.02 of the Revised Code
and the bond proceedings shall provide for the purpose thereof and
the principal amount or amounts, and shall provide for or authorize
the manner or agency for determining the principal maturity or
maturities, not exceeding forty years from the date of issuance, the
interest rate or rates or the maximum interest rate, the date of the
obligations and the dates of payment of interest thereon, their
denomination, and the establishment within or without the state of a
place or places of payment of bond service charges. Sections 9.98 to
9.983 of the Revised Code apply to obligations issued under this
section. The purpose of such obligations may be stated in the bond
proceedings in terms describing the general purpose or purposes to be
served. The bond proceedings shall also provide, subject to the
provisions of any other applicable bond proceedings, for the pledge
of all, or such part as the commissioners of the sinking fund may
determine, of the moneys credited to the coal research and
development bond service fund to the payment of bond service charges,
which pledges may be made either prior or subordinate to other
expenses, claims, or payments and may be made to secure the
obligations on a parity with obligations theretofore or thereafter
issued, if and to the extent provided in the bond proceedings. The
moneys so pledged and thereafter received by the state are
immediately subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledges is
valid and binding against all parties having claims of any kind
against the state or any governmental agency of the state,
irrespective of whether such parties have notice thereof, and shall
create a perfected security interest for all purposes of Chapter
1309. of the Revised Code, without the necessity for separation or
delivery of funds or for the filing or recording of the bond
proceedings by which such pledge is created or any certificate,
statement, or other document with respect thereto; and the pledge of
such moneys is effective and the money therefrom and thereof may be
applied to the purposes for which pledged without necessity for any
act of appropriation. Every pledge, and every covenant and agreement
made with respect thereto, made in the bond proceedings may therein
be extended to the benefit of the owners and holders of obligations
authorized by this section, and to any trustee therefor, for the
further security of the payment of the bond service charges.
(D)
The bond proceedings may contain additional provisions as to:
(1)
The redemption of obligations prior to maturity at the option of the
commissioners of the sinking fund at such price or prices and under
such terms and conditions as are provided in the bond proceedings;
(2)
Other terms of the obligations;
(3)
Limitations on the issuance of additional obligations;
(4)
The terms of any trust agreement or indenture securing the
obligations or under which the obligations may be issued;
(5)
The deposit, investment, and application of the coal research and
development bond service fund, and the safeguarding of moneys on hand
or on deposit, without regard to Chapter 131. or 135. of the Revised
Code, but subject to any special provisions of this chapter, with
respect to particular moneys; provided, that any bank or trust
company which acts as depository of any moneys in the fund may
furnish such indemnifying bonds or may pledge such securities as
required by the commissioners of the sinking fund;
(6)
Any other provision of the bond proceedings being binding upon the
commissioners of the sinking fund, or such other body or person as
may from time to time have the authority under law to take such
actions as may be necessary to perform all or any part of the duty
required by such provision;
(7)
Any provision which may be made in a trust agreement or indenture;
(8)
Any other or additional agreements with the holders of the
obligations, or the trustee therefor, relating to the obligations or
the security therefor, including the assignment of mortgages or other
security obtained or to be obtained for loans under this chapter.
(E)
The obligations may have the great seal of the state or a facsimile
thereof affixed thereto or printed thereon. The obligations shall be
signed by such members of the commissioners of the sinking fund as
are designated in the resolution authorizing the obligations or bear
the facsimile signatures of such members. Any coupons attached to the
obligations shall bear the facsimile signature of the treasurer of
state. Any obligations may be executed by the persons who, on the
date of execution, are the commissioners although on the date of such
bonds the persons were not the commissioners. Any coupons may be
executed by the person who, on the date of execution, is the
treasurer of state although on the date of such coupons the person
was not the treasurer of state. In case any officer or commissioner
whose signature or a facsimile of whose signature appears on any such
obligations or any coupons ceases to be such officer or commissioner
before delivery thereof, such signature or facsimile is nevertheless
valid and sufficient for all purposes as if the individual had
remained such officer or commissioner until such delivery; and in
case the seal to be affixed to obligations has been changed after a
facsimile of the seal has been imprinted on such obligations, such
facsimile seal shall continue to be sufficient as to such obligations
and obligations issued in substitution or exchange therefor.
(F)
All obligations except loan guarantees are negotiable instruments and
securities under Chapter 1308. of the Revised Code, subject to the
provisions of the bond proceedings as to registration. The
obligations may be issued in coupon or in registered form, or both,
as the commissioners of the sinking fund determine. Provision may be
made for the registration of any obligations with coupons attached
thereto as to principal alone or as to both principal and interest,
their exchange for obligations so registered, and for the conversion
or reconversion into obligations with coupons attached thereto of any
obligations registered as to both principal and interest, and for
reasonable charges for such registration, exchange, conversion, and
reconversion.
(G)
Obligations may be sold at public sale or at private sale, as
determined in the bond proceedings.
(H)
Pending preparation of definitive obligations, the commissioners of
the sinking fund may issue interim receipts or certificates which
shall be exchanged for such definitive obligations.
(I)
In the discretion of the commissioners of the sinking fund,
obligations may be secured additionally by a trust agreement or
indenture between the commissioners and a corporate trustee, which
may be any trust company or bank having a place of business within
the state. Any such agreement or indenture may contain the resolution
authorizing the issuance of the obligations, any provisions that may
be contained in any bond proceedings, and other provisions that are
customary or appropriate in an agreement or indenture of such type,
including, but not limited to:
(1)
Maintenance of each pledge, trust agreement, indenture, or other
instrument comprising part of the bond proceedings until the state
has fully paid the bond service charges on the obligations secured
thereby, or provision therefor has been made;
(2)
In the event of default in any payments required to be made by the
bond proceedings, or any other agreement of the commissioners of the
sinking fund made as a part of the contract under which the
obligations were issued, enforcement of such payments or agreement by
mandamus, the appointment of a receiver, suit in equity, action at
law, or any combination of the foregoing;
(3)
The rights and remedies of the holders of obligations and of the
trustee, and provisions for protecting and enforcing them, including
limitations on rights of individual holders of obligations;
(4)
The replacement of any obligations that become mutilated or are
destroyed, lost, or stolen;
(5)
Such other provisions as the trustee and the commissioners of the
sinking fund agree upon, including limitations, conditions, or
qualifications relating to any of the foregoing.
(J)
Any holder of obligations or a trustee under the bond proceedings,
except to the extent that the holder's rights are restricted by the
bond proceedings, may by any suitable form of legal proceedings
protect and enforce any rights under the laws of this state or
granted by such bond proceedings. Such rights include the right to
compel the performance of all duties of the commissioners of the
sinking fund, the department of
housing
and
development,
or the Ohio coal development office required by this chapter and
Chapter 1551. of the Revised Code or the bond proceedings; to enjoin
unlawful activities; and in the event of default with respect to the
payment of any bond service charges on any obligations or in the
performance of any covenant or agreement on the part of the
commissioners, the department, or the office in the bond proceedings,
to apply to a court having jurisdiction of the cause to appoint a
receiver to receive and administer the moneys pledged, other than
those in the custody of the treasurer of state, that are pledged to
the payment of the bond service charges on such obligations or that
are the subject of the covenant or agreement, with full power to pay,
and to provide for payment of bond service charges on, such
obligations, and with such powers, subject to the direction of the
court, as are accorded receivers in general equity cases, excluding
any power to pledge additional revenues or receipts or other income
or moneys of the commissioners of the sinking fund or the state or
governmental agencies of the state to the payment of such principal
and interest and excluding the power to take possession of, mortgage,
or cause the sale or otherwise dispose of any project.
Each
duty of the commissioners of the sinking fund and their employees,
and of each governmental agency and its officers, members, or
employees, undertaken pursuant to the bond proceedings or any grant,
loan, or loan guarantee agreement made under authority of this
chapter, and in every agreement by or with the commissioners, is
hereby established as a duty of the commissioners, and of each such
officer, member, or employee having authority to perform such duty,
specifically enjoined by the law resulting from an office, trust, or
station within the meaning of section 2731.01 of the Revised Code.
The
persons who are at the time the commissioners of the sinking fund, or
their employees, are not liable in their personal capacities on any
obligations issued by the commissioners or any agreements of or with
the commissioners.
(K)
Obligations issued under this section are lawful investments for
banks, societies for savings, savings and loan associations, deposit
guarantee associations, trust companies, trustees, fiduciaries,
insurance companies, including domestic for life and domestic not for
life, trustees or other officers having charge of sinking and bond
retirement or other special funds of political subdivisions and
taxing districts of this state, the commissioners of the sinking fund
of the state, the administrator of workers' compensation, the state
teachers retirement system, the public employees retirement system,
the school employees retirement system, and the Ohio police and fire
pension fund, notwithstanding any other provisions of the Revised
Code or rules adopted pursuant thereto by any governmental agency of
the state with respect to investments by them, and are also
acceptable as security for the deposit of public moneys.
(L)
If the law or the instrument creating a trust pursuant to division
(I) of this section expressly permits investment in direct
obligations of the United States or an agency of the United States,
unless expressly prohibited by the instrument, such moneys also may
be invested in no-front-end-load money market mutual funds consisting
exclusively of obligations of the United States or an agency of the
United States and in repurchase agreements, including those issued by
the fiduciary itself, secured by obligations of the United States or
an agency of the United States; and in collective investment funds
established in accordance with section 1111.14 of the Revised Code
and consisting exclusively of any such securities, notwithstanding
division (A)(1)(c) of that section. The income from such investments
shall be credited to such funds as the commissioners of the sinking
fund determine, and such investments may be sold at such times as the
commissioners determine or authorize.
(M)
Provision may be made in the applicable bond proceedings for the
establishment of separate accounts in the bond service fund and for
the application of such accounts only to the specified bond service
charges on obligations pertinent to such accounts and bond service
fund and for other accounts therein within the general purposes of
such fund. Moneys to the credit of the bond service fund shall be
disbursed on the order of the treasurer of state; provided, that no
such order is required for the payment from the bond service fund
when due of bond service charges on obligations.
(N)
The commissioners of the sinking fund may pledge all, or such portion
as they determine, of the receipts of the bond service fund to the
payment of bond service charges on obligations issued under this
section, and for the establishment and maintenance of any reserves,
as provided in the bond proceedings, and make other provisions
therein with respect to pledged receipts as authorized by this
chapter, which provisions control notwithstanding any other
provisions of law pertaining thereto.
(O)
The commissioners of the sinking fund may covenant in the bond
proceedings, and any such covenants control notwithstanding any other
provision of law, that the state and applicable officers and
governmental agencies of the state, including the general assembly,
so long as any obligations are outstanding, shall:
(1)
Maintain statutory authority for and cause to be levied and collected
taxes so that the pledged receipts are sufficient in amount to meet
bond service charges, and the establishment and maintenance of any
reserves and other requirements provided for in the bond proceedings,
and, as necessary, to meet covenants contained in any loan guarantees
made under this chapter;
(2)
Take or permit no action, by statute or otherwise, that would impair
the exemption from federal income taxation of the interest on the
obligations.
(P)
All moneys received by or on account of the state and required by the
applicable bond proceedings, consistent with this section, to be
deposited, transferred, or credited to the coal research and
development bond service fund, and all other moneys transferred or
allocated to or received for the purposes of the fund, shall be
credited to such fund and to any separate accounts therein, subject
to applicable provisions of the bond proceedings, but without
necessity for any act of appropriation. During the period beginning
with the date of the first issuance of obligations and continuing
during such time as any such obligations are outstanding, and so long
as moneys in the bond service fund are insufficient to pay all bond
service charges on such obligations becoming due in each year, a
sufficient amount of moneys of the state are committed and shall be
paid to the bond service fund in each year for the purpose of paying
the bond service charges becoming due in that year without necessity
for further act of appropriation for such purpose. The bond service
fund is a trust fund and is hereby pledged to the payment of bond
service charges to the extent provided in the applicable bond
proceedings, and payment thereof from such fund shall be made or
provided for by the treasurer of state in accordance with such bond
proceedings without necessity for any act of appropriation. All
investment earnings of the fund shall be credited to the fund.
(Q)
For purposes of establishing the limitations contained in Section 15
of Article VIII, Ohio Constitution, the "principal amount"
refers to the aggregate of the offering price of the bonds or notes.
"Principal amount" does not refer to the aggregate value at
maturity or redemption of the bonds or notes.
(R)
This section applies only with respect to obligations issued and
delivered prior to September 30, 2000.
Sec.
1555.17.
All
final actions of the director of the Ohio coal development office
shall be journalized and such journal shall be open to inspection of
the public at all reasonable times. Any materials or data, to the
extent that they consist of trade secrets, as defined in section
1333.61 of the Revised Code, or other proprietary information, that
are submitted or made available to, or received by, the department of
housing
and
development
or the director of the Ohio coal development office, in connection
with agreements for assistance entered into under this chapter or
Chapter 1551. of the Revised Code, or any information taken from
those materials or data, are not public records for the purposes of
section 149.43 of the Revised Code.
Sec.
1728.01.
As
used in sections 1728.01 to 1728.13 of the Revised Code:
(A)
"Governing body" means, in the case of a municipal
corporation, the city council or legislative authority.
(B)
"Community urban redevelopment corporation" means a
corporation qualified under Chapter 1728. of the Revised Code, to
acquire, construct, operate, and maintain a project hereunder, or to
acquire, operate, and maintain a project constructed by a corporation
so qualified under Chapter 1728. of the Revised Code, and the term
"corporation" when used within Chapter 1728. of the Revised
Code, shall be understood to be a contraction of the term "community
urban redevelopment corporation" except when the context
indicates otherwise.
(C)
"Impacted city" means a municipal corporation that meets
the requirements of either division (C)(1) or (2) of this section:
(1)
In attempting to cope with the problems of urbanization, to create or
preserve jobs and employment opportunities, and to improve the
economic welfare of the people of the municipal corporation, the
municipal corporation has at some time:
(a)
Taken affirmative action by its legislative body to permit the
construction of housing by a metropolitan housing authority organized
pursuant to sections 3735.27 to 3735.39 of the Revised Code within
its corporate boundaries or to permit such a metropolitan housing
authority to lease dwelling units within its corporate boundaries;
and
(b)
Been certified by the director of the department of
housing
and
development
that a workable program for community improvement (which shall
include an official plan of action for effectively dealing with the
problem of urban slums and blight within the community and for the
establishment and preservation of a well-planned community with
well-organized residential neighborhoods of decent homes and suitable
living environment for adequate family life) for utilizing
appropriate private and public resources to eliminate, and to prevent
the development or spread of, slums and urban blight, to encourage
needed urban rehabilitation, to provide for the redevelopment of
blighted, deteriorated, or slum areas, to undertake such activities
or other feasible community activities as may be suitably employed to
achieve the objectives of such a program has been adopted. A
determination by the United States that the impacted city's workable
program meets the federal workable program requirements shall be
sufficient for the director's certification.
(2)
Been declared a major disaster area, or part of a major disaster
area, pursuant to the "Disaster Relief Act of 1970," 84
Stat. 1744, 42 U.S.C.A. 4401, as now or hereafter amended, and has
been extensively damaged or destroyed by a major disaster, provided
that impacted city status obtained pursuant to division (C)(2) of
this section lasts for only a limited period from the date of the
declaration, as determined by the rules promulgated pursuant to
division (G) of section 122.06 of the Revised Code, but in the event
that an impacted city, while qualified under such division, enters
into a financial agreement with a community urban redevelopment
corporation pursuant to section 1728.07 of the Revised Code, a loss
of certification under such rules shall not affect that agreement or
the project to which it relates.
(D)
"Community development plan" means a plan, as it exists
from time to time, for the redevelopment and renewal of a blighted
area, which plan shall conform to the general plan for the
municipality, and shall be sufficiently complete to indicate such
land acquisition, demolition, and removal of structures,
redevelopment, improvements, and rehabilitation as may be proposed to
be carried out in such blighted area, zoning, and any planning
changes, land uses, maximum densities, and building requirements.
(E)
"Blighted area" has the meaning defined in section 1.08 of
the Revised Code.
(F)
"Project" means:
(1)
As to blighted areas within all municipal corporations, the
undertaking and execution of the redevelopment of a blighted area by
a community urban redevelopment corporation, in whole or in part,
pursuant to a community development plan approved by the governing
body of the municipal corporation in which such blighted area is
situated and in accordance with an agreement for the sale or lease of
all or a portion of the land concerned in such redevelopment to the
corporation by a municipal corporation, or agency, or authority
including the work to be done in reference thereto, the designation
of the particular proposed buildings to be constructed and their uses
and purposes, the landscaping of the premises, the streets and access
roads, recreational facilities, if any, the furnishing of the public
utilities, the financial arrangements, and the terms and conditions
of the proposed municipal corporation and approval; and
(2)
In addition as to blighted areas within impacted cities, the
undertaking and activities of a community urban redevelopment
corporation in a blighted area for the elimination and for the
prevention of the development or spread of blight pursuant to a
community development plan approved by the governing body of the
impacted city and to the extent agreed to by the governing body of
the impacted city in the financial agreement provided for in section
1728.07 of the Revised Code and may involve clearance and
redevelopment, or rehabilitation or conservation or any combination
or part thereof, in accordance with such community development plan,
and such aforesaid undertakings and activities may include
acquisition of a blighted area or portion by purchase or otherwise,
and demolition and removal of buildings and improvements.
(G)
"Total project unit cost" or "total project cost"
means the aggregate of the following items as related to any unit of
a project if the project is to be undertaken in units or to the total
project if the project is not to be undertaken in units:
(1)
Cost of the land to the community urban redevelopment corporation;
(2)
Architects', engineers', and attorneys' fees paid or payable by the
corporation in connection with the planning, construction, and
financing of the project;
(3)
Surveying and testing charges in connection therewith;
(4)
Actual construction cost as certified by the architect, including the
cost of any preparation of the site undertaken at the corporation's
expense;
(5)
Insurance, interest, and finance costs during construction;
(6)
Cost of obtaining initial permanent financing;
(7)
Commissions and other expenses paid or payable in connection with
initial leasing;
(8)
Real estate taxes and assessments during the construction period;
(9)
Developer's overhead based on a percentage of division (G)(4) of this
section, to be computed in accordance with the following schedule:
1
2
A
$500,000
or less
-
10 per cent
B
500,001
through $ 1,000,000
-
$50,000 plus 8 per cent on excess above $500,000
C
1,000,001
through 2,000,000
-
90,000 plus 7 per cent on excess above 1,000,000
D
2,000,001
through 3,500,000
-
160,000 plus 5.6667 per cent on excess above 2,000,000
E
3,500,001
through 5,500,000
-
245,000 plus 4.25 per cent on excess above 3,500,000
F
5,500,001
through 10,000,000
-
330,000 plus 3.7778 per cent on excess above 5,500,000
G
Over
10,000,000
-
5 per cent
(H)
"Annual gross revenue" means the total annual gross rental
and other income of a community urban redevelopment corporation from
the project. If in any leasing, any real estate taxes or assessments
on property included in the project, any premiums for fire or other
insurance on or concerning property included in the project, or any
operating or maintenance expenses ordinarily paid by a landlord are
to be paid by the tenant, such payments shall be computed and deemed
to be part of the rent and shall be included in the annual gross
revenue. The financial agreement provided for in section 1728.07 of
the Revised Code shall establish the method of computing such
additional revenue, and may establish a method of arbitration where
either the landlord or the tenant disputes the amount of such
payments so included in the annual gross revenue.
(I)
"Major disaster" means any tornado, storm, flood, high
water, wind-driven water, tidal wave, earthquake, fire, or other
catastrophe.
Sec.
1728.07.
Every
approved project shall be evidenced by a financial agreement between
the municipal corporation and the community urban redevelopment
corporation. Such agreement shall be prepared by the community urban
redevelopment corporation and submitted as a separate part of its
application for project approval.
The
financial agreement shall be in the form of a contract requiring full
performance within twenty years from the date of completion of the
project and shall, as a minimum, include the following:
(A)
That all improvements in the project to be constructed or acquired by
the corporation shall be exempt from taxation, subject to section
1728.10 of the Revised Code;
(B)
That the corporation shall make payments in lieu of real estate taxes
not less than the amount as provided by section 1728.11 of the
Revised Code; or if the municipal corporation is an impacted city,
not less than the amount as provided by section 1728.111 of the
Revised Code;
(C)
That the corporation, its successors and assigns, shall use, develop,
and redevelop the real property of the project in accordance with,
and for the period of, the community development plan approved by the
governing body of the municipal corporation for the blighted area in
which the project is situated and shall so bind its successors and
assigns by appropriate agreements and covenants running with the land
enforceable by the municipal corporation.
(D)
If the municipal corporation is an impacted city, the extent of the
undertakings and activities of the corporation for the elimination
and for the prevention of the development or spread of blight.
(E)
That the corporation or the municipal corporation, or both, shall
provide for carrying out relocation of persons, families, business
concerns, and others displaced by the project, pursuant to a
relocation plan, including the method for the relocation of residents
in decent, safe, and sanitary dwelling accommodations, and reasonable
moving costs, determined to be feasible by the governing body of the
municipal corporation. Where the relocation plan is carried out by
the corporation, its officers, employees, agents, or lessees, the
municipal corporation shall enforce and supervise the corporation's
compliance with the relocation plan. If the corporation refuses or
fails to comply with the relocation plan and the municipal
corporation fails or refuses to enforce compliance with such plan,
the director of
housing
and
development
may request the attorney general to commence a civil action against
the municipality and the corporation to require compliance with such
relocation plan. Prior to requesting action by the attorney general
the director shall give notice of the proposed action to the
municipality and the corporation, provide an opportunity to such
municipality and corporation for discussions on the matter, and allow
a reasonable time in which the corporation may begin compliance with
the relocation plan, or the municipality may commence enforcement of
the relocation plan.
(F)
That the corporation shall submit annually, within ninety days after
the close of its fiscal year, its auditor's reports to the mayor and
governing body of the municipal corporation;
(G)
That the corporation shall, upon request, permit inspection of
property, equipment, buildings, and other facilities of the
corporation, and also permit examination and audit of its books,
contracts, records, documents, and papers by authorized
representatives of the municipal corporation;
(H)
That in the event of any dispute between the parties the matters in
controversy shall be resolved by arbitration in the manner provided
therein;
(I)
That operation under the financial agreement is terminable by the
corporation in the manner provided by Chapter 1728. of the Revised
Code;
(J)
That the corporation shall, at all times prior to the expiration or
other termination of the financial agreement, remain bound by Chapter
1728. of the Revised Code;
(K)
Modifications of the financial agreement may from time to time be
made by agreement between the governing body of the municipal
corporation and the community urban redevelopment corporation.
Sec.
3326.02.
There
is hereby established the STEM committee of the department of
education and workforce consisting of the following members:
(A)
The director of education and workforce, or the director's designee;
(B)
The chancellor of higher education, or the chancellor's designee;
(C)
The director of
housing
and
development,
or the director's designee;
(D)
Four members of the public, two of whom shall be appointed by the
governor, one of whom shall be appointed by the speaker of the house
of representatives, and one of whom shall be appointed by the
president of the senate. Members of the public shall be appointed
based on their expertise in business or in STEM fields.
All
members of the committee appointed under division (D) of this section
shall serve at the pleasure of their appointing authority.
If
a member listed in divisions (A) to (C) of this section elects to
assign a designee to participate in committee business on the
member's behalf, the member shall assign that designation to a single
person for the time period in which the designation is effective.
Members
of the committee shall receive no compensation for their services.
The department of education and workforce shall provide
administrative support for the committee.
Sec.
3327.17.
The
department of
housing
and
development
shall establish a biodiesel school bus program under which the
director of
housing
and
development
shall make grants to school districts that use biodiesel fuel for
pupil transportation to help offset incremental costs incurred by
using biodiesel instead of one hundred per cent petroleum diesel.
As
used in this section, "biodiesel" has the same meaning as
in section 122.075 of the Revised Code.
Sec.
3333.373.
(A)
The scholarship rules advisory committee is hereby established. The
committee shall consist of the chancellor of higher education or the
chancellor's designee, the treasurer of state or the treasurer of
state's designee, the director of
housing
and
development
or the director's designee, one state senator appointed by the
president of the senate, one state representative appointed by the
speaker of the house of representatives, and two public members
appointed by the chancellor of higher education representing the
interests of the state-assisted eligible institutions and private
nonprofit eligible institutions, respectively.
(B)
The committee shall provide recommendations to the chancellor of
higher education as to rules, criteria, and guidelines necessary and
appropriate to implement the scholarship and fellowship programs
created by sections 3333.37 to 3333.375 of the Revised Code.
(C)
The committee shall meet at least annually to review the scholarship
and fellowship programs guidelines; make recommendations to amend,
rescind, or modify the policy guidelines; and approve scholarship and
fellowship awards to eligible students.
(D)
Sections 101.82 to 101.87 of the Revised Code do not apply to this
section.
Sec.
3333.50.
The
chancellor of higher education, in consultation with the governor and
the department of
housing
and
development,
shall develop a critical needs rapid response system to respond
quickly to critical workforce shortages in the state. Not later than
ninety days after a critical workforce shortage is identified, the
chancellor shall submit to the governor a proposal for addressing the
shortage through initiatives of the department of higher education or
institutions of higher education.
Sec.
3366.01.
As
used in this chapter, the following words and terms have the
following meanings unless the context indicates a different meaning
or intent:
(A)
"Bond proceedings" means the order, trust, agreement,
indenture and other agreements, or amendments and supplements to the
foregoing, or any one or more or combination thereof, authorizing or
providing for the terms and conditions applicable to, or providing
for the issuance, security, or liquidity of, obligations and the
provisions contained in such obligations.
(B)
"Bond service charges" means principal, including mandatory
sinking fund requirements for retirement of obligations, and
interest, and redemption premium, if any, required to be paid on
obligations.
(C)
"Bond service fund" means the applicable fund and accounts
therein created in the bond proceedings for and pledged to the
payment of bond service charges, including all moneys and
investments, and earnings from investments, credited and to be
credited thereto.
(D)
"Costs of attendance" means all costs of a student incurred
in connection with a program of study at an eligible institution, as
determined by the institution, including tuition; instructional fees;
room and board; books, computers, and supplies; and other related
fees, charges, and expenses.
(E)
"Designated administrator" means, with respect to all
obligations issued prior to September 1, 1999, and to all nonfederal
education loans, the nonprofit corporation designated on November 10,
1992, under division (D) of section 3351.07 of the Revised Code to
operate exclusively for charitable and educational purposes by
expanding access to higher education financing programs for students
and families in need of student financial aid. For all other
purposes, "designated administrator" means the Ohio
corporation that is a subsidiary of the nonprofit corporation
designated under division (D) of section 3351.07 of the Revised Code
and that has agreed to enter into an administration agreement with
the issuing authority and the director of
housing
and
development,
or any other person that enters into an administration agreement with
the issuing authority and the director of
housing
and
development.
(F)
"Education loan" means a loan made by an eligible lender
pursuant to the policy guidelines to or for the benefit of a student
for the purpose of financing part or all of the student's costs of
attendance.
(G)
"Eligible borrower" means any of the following:
(1)
Individuals who are residents of the state, and who are attending and
are in good standing in, or who have been accepted for attendance at,
any eligible institution located in this state or elsewhere, on a
part-time or full-time basis, to pursue an associate, baccalaureate,
or advanced degree or a nursing diploma;
(2)
Individuals who reside outside the state and who have been accepted
for attendance at, or who are attending and are in good standing in,
any eligible institution located in this state, on a part-time or
full-time basis, to pursue an associate, baccalaureate, or advanced
degree or a nursing diploma;
(3)
Individuals who are parents or legal guardians of, or other persons,
as set forth in the policy guidelines, borrowing under an education
loan for the benefit of individuals meeting requirements set forth in
division (G)(1) or (2) of this section, in order to assist them in
paying costs of attendance.
(H)(1)
"Eligible institution" means an institution described in
any of divisions (H)(1)(a), (b), (c), or (d) of this section that
satisfies all of the requirements set forth in divisions (H)(2), (3),
and (4) of this section.
(a)
The institution is a state-assisted post-secondary educational
institution within this state.
(b)
The institution is a nonprofit institution within this state having a
certificate of authorization from the Ohio board of regents pursuant
to Chapter 1713. of the Revised Code.
(c)
The institution is a post-secondary educational institution similar
to one described in division (H)(1)(a) or (b) of this section that is
located outside this state and that is similarly approved by the
appropriate agency of that state.
(d)
The institution is a private institution exempt from regulation under
Chapter 3332. of the Revised Code as prescribed in section 3333.046
of the Revised Code.
(2)
The institution is accredited by the appropriate regional and, when
appropriate, professional accrediting associations within whose
jurisdiction it falls.
(3)
The institution satisfies the eligibility requirements for
participation in the federal family education loan program authorized
under Title IV, Part B, of the "Higher Education Act of 1965,"
20 U.S.C.A. 1071 et seq., as amended, as long as that program remains
in existence.
(4)
The institution satisfies the other conditions set forth in the
policy guidelines.
(I)
"Eligible lender" means, with respect to lenders making
nonfederal education loans, a bank, national banking association,
savings bank, savings and loan association, or credit union having an
office in this state that satisfies the criteria for eligible lenders
established pursuant to the policy guidelines. With respect to
lenders making federal education loans, "eligible lender"
means any person that is permitted to make loans under the federal
family education loan program authorized under Title IV, Part B, of
the "Higher Education Act of 1965," 20 U.S.C.A. 1071 et
seq., as amended; that has an office in this state; and that
satisfies the criteria for eligible lenders established pursuant to
the policy guidelines.
(J)
"Federal education loan" means an education loan that is
originated in compliance with the federal family education loan
program authorized under Title IV, Part B, of the "Higher
Education Act of 1965," 20 U.S.C.A. 1071 et seq., as amended.
(K)
"Governmental agency" means the state and any state
department, division, commission, institution, or authority; the
United States or any agency thereof; or any agency, commission, or
authority established pursuant to an interstate compact or agreement;
or any combination of the foregoing.
(L)
"Issuing authority" means the treasurer of state, or the
officer who by law performs the functions of the treasurer of state.
(M)
"Nonfederal education loan" means any education loan that
is not a federal education loan.
(N)
"Obligations" means the bonds, notes, or securities of this
state issued by the issuing authority pursuant to this chapter.
(O)
"Person" means any individual, corporation, business trust,
estate, trust, partnership, or association, any federal, state,
interstate, regional, or local governmental agency, any subdivision
of the state, or any combination of these.
(P)
"Pledged receipts" means, to the extent the following are
pledged by the bond proceedings for the payment of bond service
charges: all receipts representing moneys accruing from or in
connection with the repayment of education loans, including interest
and payments from any guarantee or insurance in respect to such
education loans; accrued interest received from the sale of
obligations; the balances in the special funds; income from the
investment of the special funds; all right, title, and interest of
the state and the designated administrator in the education loans and
any guarantees or insurance in respect thereof, and any money
representing the proceeds of obligations or any income from or
interest on those proceeds; or any other gifts, grants, donations,
and pledges and any income and receipts therefrom, available and
pledged for the payment of bond service charges.
(Q)
"Policy guidelines" means the rules adopted pursuant to
division (A) of section 3366.03 of the Revised Code.
(R)
"Proceeds loan" means the transfer, pursuant to a loan
agreement or agency agreement, of the proceeds of the obligations, or
the deposit of the proceeds of the obligations with a trustee in
trust under a trust agreement, indenture, or other trust document
under the bond proceedings pending their disbursement for the
purposes authorized by this chapter.
(S)
"Resident" means any student who would qualify as a
resident of this state for state subsidy and tuition surcharge
purposes under rules adopted by the Ohio board of regents under
section 3333.31 of the Revised Code.
(T)
"Special funds" or "funds" means the bond service
fund and any other funds, including reserve funds, created under the
bond proceedings, including all moneys and investments, and earnings
from investment, credited and to be credited thereto.
(U)
"Student" means an individual described in division (G)(1)
or (2) of this section who meets requirements established under the
policy guidelines. "Student" includes dependent and
independent undergraduate, graduate, and professional students.
(V)
"Subdivision" has the same meaning as in division (MM) of
section 133.01 of the Revised Code.
Sec.
3366.03.
(A)
In furtherance of the public policy and purpose set forth in section
3366.02 of the Revised Code and to implement that purpose, the
director of
housing
and
development,
with the approval of the issuing authority, shall adopt, amend, or
rescind rules, pursuant to Chapter 119. of the Revised Code,
establishing such policy guidelines as the director considers
necessary or appropriate to provide for creating a secondary market
for education loans as authorized by this chapter. The policy
guidelines shall include such provisions as the director considers
appropriate to further the public policy and purpose set forth in
section 3366.02 of the Revised Code.
(B)
The director of
housing
and
development
or the issuing authority or both may:
(1)
Enter into agreements with any designated administrator to provide
for the proceeds loan for the purchase of education loans on the
secondary market;
(2)
Enter into agreements with any designated administrator to provide
for stimulating the making of education loans through the
the
acquisition of such loans, in accordance with the policy guidelines;
and
(3)
Do all other acts and enter into contracts and execute all
instruments necessary or appropriate to carry out the provisions of
this chapter.
(C)
All expenses and obligations incurred by the issuing authority or the
director of
housing
and
development
in carrying out duties and in exercising powers under this chapter
shall be payable solely from, as appropriate, pledged receipts,
moneys from the sale of obligations, or any amounts contributed by
the designated administrator. This chapter does not authorize the
issuing authority to incur debt or bonded indebtedness of the state,
or to obligate or pledge any moneys other than pledged receipts for
the payment of any obligations.
(D)
The designated administrator, subject to the applicable provisions of
this chapter, shall purchase education loans from eligible lenders
directly or indirectly, with moneys loaned or otherwise provided to
it under this chapter from the proceeds of obligations, which
education loans are used by and for students for paying costs of
attendance at eligible institutions.
(E)
In accordance with the policy guidelines, the designated
administrator shall do all of the following:
(1)
Specify the terms of and procedures for making, selling, purchasing,
servicing, and collecting those education loans eligible for purchase
under the guidelines;
(2)
Take such actions as may be necessary or appropriate to establish the
terms of, purchase, service or otherwise administer, and collect any
education loan;
(3)
With respect to those loans acquired pursuant to this chapter,
establish the fees including, without limitation, origination and
loan fees; charges; rates of interest; times of payment of interest
and principal; late charges; aggregate amounts of education loans to
be issued per year and in total; eligibility and credit criteria of
eligible borrowers; refinancing or consolidation provisions; criteria
for participation by eligible lenders; criteria for allocating the
distribution of education loans among students attending or planning
to attend different eligible institutions; terms of sales and
purchases of education loans; and other terms, conditions, and
provisions of and security for education loans.
The
designated administrator shall not purchase any education loan unless
the loan conforms to the policy guidelines.
(F)
If the director of
housing
and
development
determines that education loans are not being made in the amount or
manner anticipated, the designated administrator, with the consent of
the director, may enter into special arrangements with certain
eligible lenders pursuant to guidelines adopted under this chapter to
stimulate the provision of education loans.
(G)
The designated administrator may establish additional procedures and
set other terms and conditions not inconsistent with the policy
guidelines as may be necessary or appropriate in connection with the
program authorized under this chapter.
(H)
At least annually by a date specified by the director of
housing
and
development,
the designated administrator shall provide to the issuing authority
and the director of
housing
and
development
reports on the use of the proceeds of obligations.
(I)
For purposes of this chapter, any designated administrator other than
the nonprofit corporation designated under division (D) of section
3351.07 of the Revised Code shall be a person that maintains its
principal place of business in the state and that has as its
principal business the making, purchasing, holding, or selling of
loans made to finance individuals' cost of post-secondary education.
Sec.
3366.04.
(A)
The issuing authority may issue obligations under this section to
provide money to make proceeds loans to the designated administrator
for the purpose of acquiring education loans, or needed for
capitalized interest, for funding reserves, and for paying costs and
expenses incurred in connection with the issuance, carrying,
securing, paying, redeeming, or retirement of the obligations or any
obligations refunded thereby, including payment of costs and expenses
relating to letters of credit, lines of credit, insurance, put
agreements, standby purchase agreements, indexing, marketing,
remarketing and administrative arrangements, interest swap or hedging
agreements, and any other credit enhancement facility as defined in
division (H) of section 133.01 of the Revised Code, liquidity,
remarketing, renewal, or refunding arrangements, all of which are
authorized by this section. The proceeds thereof shall, as provided
in the bond proceedings, be loaned, or otherwise made available as a
proceeds loan, to the designated administrator. The issuing authority
may appoint trustees, paying agents, and transfer agents and may
retain the services of financial advisors, accounting experts, and
attorneys, and retain or contract for the services of marketing,
remarketing, indexing, and administrative agents, other consultants,
and independent contractors, including printing services, as are
necessary to carry out the provisions of this section. The costs of
such services are allowable costs payable from the proceeds of such
obligations.
(B)
The holders or owners of obligations shall have no right to have
taxes levied by the general assembly, or any moneys other than
pledged receipts obligated or pledged, and any moneys other than
pledged receipts shall not be obligated or pledged, for the payment
of bond service charges. The obligations are not debts of the state,
bond service charges are payable solely from the revenues and funds
pledged as pledged receipts for their payment, and the right of such
holders and owners to payment of bond service charges is limited to
pledged receipts as provided in the bond proceedings, and each such
obligation shall bear on its face a statement to that effect. No
money, including money from the general revenue fund, shall be
appropriated, obligated, or used to pay bond service charges or the
costs incurred in the administration of this chapter, other than
pledged receipts.
(C)
Obligations shall be authorized by order of the issuing authority at
the request of the designated administrator and with the approval of
the director of
housing
and
development,
and the bond proceedings shall provide for the purpose thereof and
the principal amount or amounts, and shall provide for or authorize
the manner for determining the principal maturity or maturities, the
interest rate or rates or the maximum interest rate, the date of the
obligations and the dates of payment of interest thereon, their
denomination, and the establishment within or outside this state of a
place or places of payment of bond service charges. Sections 9.98 to
9.983 of the Revised Code apply to obligations issued under this
section. The purpose of such obligations may be stated in the bond
proceedings in terms describing the general purpose to be served. The
bond proceedings shall also provide, subject to the provisions of any
other applicable bond proceedings, for the pledge of, and the
granting of a security interest in, all, or such part as the issuing
authority may determine, of the pledged receipts to the payment of
bond service charges, which pledge may be made and security interest
granted, subject to the provisions of any applicable prior bond
proceedings, either prior to or on a parity with or subordinate to
other expenses, claims, or payments, and may be made or granted to
secure obligations senior or subordinate to, or on a parity with,
obligations theretofore or thereafter issued, if and to the extent
provided in the bond proceedings. The pledged receipts so pledged or
subject to a security interest and thereafter received by the issuing
authority or the designated administrator on behalf of the issuing
authority or otherwise received are immediately subject to such
pledge and security interest without any physical delivery thereof or
further act, and such pledge and security interest are valid,
binding, and enforceable against all parties having claims of any
kind against the state or any governmental agency, or against the
designated administrator, whether or not such parties have notice
thereof, and shall create a perfected security interest for all
purposes of Chapter 1309. of the Revised Code, without the necessity
for separation or delivery or possession of the pledged receipts, or
for the filing or recording of the bond proceedings by which such
pledge and security interest are created or any certificate,
statement, or other document with respect thereto; and the pledge of
such pledged receipts and the security interest are effective and the
money therefrom and thereof may be applied to the purposes for which
pledged without necessity for any act of appropriation. Every pledge
made and security interest granted, and every covenant and agreement
made with respect thereto in the bond proceedings may therein be
extended to the benefit of the owners and holders of obligations
authorized by this section, and to any trustee therefor, for the
further security of the payment of the bond service charges.
(D)
The bond proceedings may contain additional provisions as to:
(1)
The redemption of obligations prior to maturity at such price or
prices and under such terms and conditions as are provided in the
bond proceedings;
(2)
Other terms of the obligations;
(3)
Limitations on the issuance of additional obligations;
(4)
The terms of any trust agreement or indenture securing the
obligations or under which the same may be issued;
(5)
The investment of the proceeds of obligations and amounts on deposit
in the special funds;
(6)
Any or every provision of the bond proceedings being binding upon
such officer, board, commission, authority, agency, department, or
other person or body as may from time to time have the authority
under law to take such actions as may be necessary to perform all or
any part of the duty required by such provision;
(7)
Any provision that may be made in a trust agreement or indenture;
(8)
Provisions for the use of the proceeds of repayment of education
loans to acquire additional education loans;
(9)
Any other or additional agreements with the holders of the
obligations, the trustee therefor, or the designated administrator,
relating to the obligations or the security therefor, including the
assignment of security obtained or to be obtained for education
loans.
(E)
The obligations and any coupons pertaining to obligations shall be in
the form specified in the bond proceedings and shall be signed by or
bear the facsimile signature of the issuing authority. Any
obligations or coupons may be executed by the person who, on the date
of execution, is the proper issuing authority although on the date of
such bonds or coupons such person was not the issuing authority. In
case the issuing authority whose signature or a facsimile of whose
signature appears on any such obligation or coupon ceases to be the
issuing authority before delivery thereof, such signature or
facsimile is nevertheless valid and sufficient for all purposes as if
that official had remained the issuing authority until such delivery.
(F)
All obligations are negotiable instruments and securities under
Chapter 1308. of the Revised Code, subject to the provisions of the
bond proceedings as to registration. The obligations may be issued in
coupon or in registered form, or both, as the issuing authority
determines. Provision may be made for the registration of any
obligations with coupons attached thereto as to principal alone or as
to both principal and interest, their exchange for obligations so
registered, and for the conversion or reconversion into obligations
with coupons attached thereto of any obligations registered as to
both principal and interest, and for reasonable charges for such
registration, exchange, conversion, and reconversion.
(G)
Obligations may be sold at public sale or at private sale, as
determined by the issuing authority in the bond proceedings.
(H)
Pending preparation of definitive obligations, the issuing authority
may issue interim receipts or certificates which shall be exchanged
for such definitive obligations.
(I)
In the discretion of the issuing authority, obligations may be
secured additionally by a trust agreement or indenture between the
issuing authority and a corporate trustee and, if so provided for in
the bond proceedings, any other necessary or appropriate party. Any
such trustee shall be a trust company, bank, or national banking
association authorized to exercise trust powers within the state. Any
such agreement or indenture may contain the order authorizing the
issuance of the obligations, any provisions that may be contained in
any bond proceedings, and other provisions which are customary or
appropriate in an agreement or indenture of such type, including, but
not limited to:
(1)
Maintenance of each pledge, security interest, and trust agreement,
indenture, or other instrument comprising part of the bond
proceedings until the bond service charges on the obligations secured
thereby have been fully paid, or provision therefor has been made in
accordance with the bond proceedings;
(2)
In the event of default in any payments required to be made by the
bond proceedings, or any other agreement of the issuing authority
made as a part of the contract under which the obligations were
issued, enforcement of such payments or agreement by mandamus, the
appointment of a receiver, suit in equity, action at law, or any
combination of the foregoing;
(3)
The rights and remedies of the holders of obligations and of the
trustee, and provisions for protecting and enforcing them, including
limitations on rights of individual holders of obligations;
(4)
The replacement of any obligations that become mutilated or are
destroyed, lost, or stolen;
(5)
Such other provisions as the trustee and the issuing authority agree
upon, including limitations, conditions, or qualifications relating
to the education loans that may be made or acquired pursuant to the
trust agreement or indenture.
(J)
Any holder of obligations or a trustee under the bond proceedings,
except to the extent that rights are restricted by the bond
proceedings, may by any suitable form of legal proceedings, protect
and enforce any rights under the laws of this state or granted by
such bond proceedings. Such rights include the right to compel the
performance of all duties of the issuing authority or the director of
housing
and
development
required by this chapter or the bond proceedings; to enjoin unlawful
activities; and, in the event of default with respect to the payment
of any bond service charges on any obligations or in the performance
of any covenant or agreement on the part of the issuing authority or
the director of
housing
and
development
in the bond proceedings, to apply to a court having jurisdiction to
appoint a receiver to receive and administer the pledged receipts
pledged to the payment of the bond service charges on such
obligations or which are the subject of the covenant or agreement,
with full power to pay and to provide for payment of bond service
charges on such obligations and with such powers, subject to the
direction of the court, as are accorded receivers in general equity
cases, excluding any power to pledge revenues or receipts or other
income or moneys, other than pledged receipts, and excluding any
power to take possession of, or cause the sale or otherwise dispose
of, any property other than the pledged receipts.
Each
duty of the issuing authority, of each governmental agency including
the director of
housing
and
development,
of the designated administrator, and of any of the officers, members,
or employees of any of the foregoing, undertaken pursuant to the bond
proceedings or any agreement made under authority of this chapter,
and each duty in every agreement by or with the issuing authority
under this chapter, each governmental agency including the director
of
housing
and
development,
and the designated administrator, is hereby established as a duty of
the issuing authority, the governmental agency, or the designated
administrator, respectively, and of each such officer, member, or
employee having authority to perform such duty, specifically enjoined
by the law resulting from an office, trust, or station within the
meaning of section 2731.01 of the Revised Code.
The
person who is at the time the issuing authority or the director of
housing
and
development,
or the officers or employees of either of them, are not liable in
their personal capacities on any obligations or any agreements of or
with the issuing authority or the director of
housing
and
development.
(K)
The issuing authority may issue obligations for the refunding,
including funding and retirement, and advance refunding with or
without payment or redemption prior to maturity, of any obligations
previously issued. Such obligations may be issued in amounts
sufficient for payment of the principal amount of the prior
obligations, any redemption premiums thereon, principal maturities of
any such obligations maturing prior to the redemption of the
remaining obligations on a parity therewith, interest accrued or to
accrue to the maturity dates or dates of redemption of such
obligations, and expenses incurred or to be incurred in connection
with such issuance and such refunding, funding, and retirement.
Subject to the bond proceedings therefor, the portion of proceeds of
the sale of obligations issued under this division to be applied to
bond service charges on the prior obligations shall be credited to an
appropriate account held by the trustee for such prior or new
obligations or to the appropriate account in the bond service fund
for such obligations. Obligations authorized under this division
shall be deemed to be issued for those purposes for which such prior
obligations were issued and are subject to the provisions of this
section pertaining to other obligations, except as otherwise provided
in this section.
(L)
The authority to issue obligations under this section includes
authority to issue obligations in the form of bond anticipation notes
and to renew the same from time to time by the issuance of new notes.
The holders of such notes or interest coupons pertaining thereto
shall have a right to be paid solely from the pledged receipts and
special funds that may be pledged to the payment of the bonds
anticipated, or from the proceeds of such anticipated bonds or
renewal notes, or both, as the issuing authority provides in the
order authorizing such notes. Such notes may be additionally secured
by covenants of the issuing authority and the director of
housing
and
development
to the effect that the issuing authority and the director of
housing
and
development
will do such or all things necessary for the issuance of such bonds
or renewal notes in appropriate amounts, and apply the proceeds
thereof to the extent necessary, to make full payment of the
principal of and interest on such notes at the time or times
contemplated, as provided in such order. For this purpose, the
issuing authority shall issue bonds or renewal notes in such
principal amount and upon such terms as may be necessary to provide
funds to pay, when required, the principal of and interest and any
premium on such notes. Subject to this division, all provisions for
and references to obligations in this section are applicable to notes
authorized under this division.
The
issuing authority in the bond proceedings authorizing the issuance of
bond anticipation notes shall set forth for such bonds an estimated
interest rate and a schedule of principal payments for such bonds and
the annual maturity dates thereof, but this provision does not modify
any authority in this section to pledge receipts to, to grant a
security interest in those receipts for the purpose of securing, and
to covenant to issue bonds to fund, the payment of principal of and
interest and any premium on such notes, or to provide in the bond
proceedings authorizing the issuance of the anticipated bonds
interest rates and a schedule of principal payments for such bonds
and the annual maturity dates thereof which differ from the estimates
in the bond proceedings authorizing the issuance of such bond
anticipation notes.
(M)
Obligations issued under this section are lawful investments for
banks; savings banks; savings and loan associations; credit union
share guarantee corporations; trust companies; trustees; fiduciaries;
insurance companies, including domestic for life and domestic not for
life; trustees or other officers having charge of sinking and bond
retirement or other special funds of the state and of subdivisions
and taxing districts of the state; the commissioners of the sinking
fund of the state; the administrator of workers' compensation,
subject to the approval of the workers' compensation board; the state
teachers retirement system; the public employees retirement system;
the school employees retirement system; and the Ohio police and fire
pension fund, notwithstanding any other provisions of the Revised
Code or rules adopted pursuant to those provisions by any agency of
the state with respect to investments by them, and are also eligible
as security for the repayment of the deposit of public moneys.
(N)
Provision may be made in the applicable bond proceedings for the
establishment of separate accounts in the bond service fund and for
the application of such accounts only to the specified bond service
charges on obligations pertinent to such accounts and bond service
fund and for other accounts therein within the general purposes of
such fund. Unless otherwise provided in any applicable bond
proceedings, moneys to the credit of or in the several special funds
established pursuant to this section shall be invested and disbursed
as provided in the bond proceedings.
(O)
The issuing authority shall pledge and grant a security interest in
all, or such portion as the issuing authority determines, of the
pledged receipts to the payment of bond service charges on
obligations, and for the establishment and maintenance of any
reserves, as provided in the bond proceedings, and make other
provisions therein with respect to pledged receipts as authorized by
this chapter, which provisions are controlling notwithstanding any
other provisions of law pertaining thereto.
(P)
The obligations, the transfer thereof, and the interest, accreted
amount, and other income therefrom, including any profit made on the
sale thereof, shall at all times be free from taxation, direct or
indirect, within this state.
Sec.
3735.27.
(A)
Whenever the director of
housing
and
development
has determined that there is need for a housing authority in any
portion of any county that comprises two or more political
subdivisions or portions of two or more political subdivisions but is
less than all the territory within the county, a metropolitan housing
authority shall be declared to exist, and the territorial limits of
the authority shall be defined, by a letter from the director. The
director shall issue a determination from the department of
housing
and
development
declaring that there is need for a housing authority within those
territorial limits after finding either of the following:
(1)
Unsanitary or unsafe inhabited housing accommodations exist in that
area;
(2)
There is a shortage of safe and sanitary housing accommodations in
that area available to persons who lack the amount of income that is
necessary, as determined by the director, to enable them, without
financial assistance, to live in decent, safe, and sanitary dwellings
without congestion.
In
determining whether dwelling accommodations are unsafe or unsanitary,
the director may take into consideration the degree of congestion,
the percentage of land coverage, the light, air, space, and access
available to the inhabitants of the dwelling accommodations, the size
and arrangement of rooms, the sanitary facilities, and the extent to
which conditions exist in the dwelling accommodations that endanger
life or property by fire or other causes.
The
territorial limits of a metropolitan housing authority as defined by
the director under this division shall be fixed for the authority
upon proof of a letter from the director declaring the need for the
authority to function in those territorial limits. Any such letter
from the director, any certificate of determination issued by the
director, and any certificate of appointment of members of the
authority shall be admissible in evidence in any suit, action, or
proceeding.
A
certified copy of the letter from the director declaring the
existence of a metropolitan housing authority and the territorial
limits of its district shall be immediately forwarded to each
appointing authority. A metropolitan housing authority shall consist
of members who are residents of the territory in which they serve.
(B)(1)
Except as otherwise provided in division (C), (D), (E), or (F) of
this section, the members of a metropolitan housing authority shall
be appointed as follows:
(a)(i)
In a district in a county in which a charter has been adopted under
Article X, Section 3 of the Ohio Constitution, and in which the most
populous city is not the city with the largest ratio of housing units
owned or managed by the authority to population, one member shall be
appointed by the probate court, one member shall be appointed by the
court of common pleas, one member shall be appointed by the board of
county commissioners, one member shall be appointed by the chief
executive officer of the city that has the largest ratio of housing
units owned or managed by the authority to population, and two
members shall be appointed by the chief executive officer of the most
populous city in the district.
(ii)
If, in a district that appoints members pursuant to division
(B)(1)(a) of this section, the most populous city becomes the city
with the largest ratio of housing units owned or managed by the
authority to population, when the term of office of the member who
was appointed by the chief executive officer of the city with the
largest ratio expires, that member shall not be reappointed, and the
membership of the authority shall be as described in division
(B)(1)(b) of this section.
(b)
In any district other than one described in division (B)(1)(a) of
this section, one member shall be appointed by the probate court, one
member shall be appointed by the court of common pleas, one member
shall be appointed by the board of county commissioners, and two
members shall be appointed by the chief executive officer of the most
populous city in the district.
(2)
At the time of the initial appointment of the authority, the member
appointed by the probate court shall be appointed for a period of
four years, the member appointed by the court of common pleas shall
be appointed for three years, the member appointed by the board of
county commissioners shall be appointed for two years, one member
appointed by the chief executive officer of the most populous city in
the district shall be appointed for one year, and the other member
appointed by the chief executive officer of the most populous city in
the district shall be appointed for five years.
If
appointments are made under division (B)(1)(a) of this section, the
member appointed by the chief executive officer of the city in the
district that is not the most populous city, but that has the largest
ratio of housing units owned or managed by the authority to
population, shall be appointed for five years.
After
the initial appointments, all members of the authority shall be
appointed for five-year terms, and any vacancy occurring upon the
expiration of a term shall be filled by the appointing authority that
made the initial appointment.
(3)
For purposes of this division, population shall be determined
according to the last preceding federal census.
(C)
For any metropolitan housing authority district that contained, as of
the 1990 federal census, a population of at least one million, two
members of the authority shall be appointed by the legislative
authority of the most populous city in the district, two members
shall be appointed by the chief executive officer of the most
populous city in the district, and one member shall be appointed by
the chief executive officer, with the approval of the legislative
authority, of the city in the district that has the second highest
number of housing units owned or managed by the authority.
At
the time of the initial appointment of the authority, one member
appointed by the legislative authority of the most populous city in
the district shall be appointed for three years, and one such member
shall be appointed for one year; the member appointed by the chief
executive officer of the city with the second highest number of
housing units owned or managed by the authority shall be appointed,
with the approval of the legislative authority, for three years; and
one member appointed by the chief executive officer of the most
populous city in the district shall be appointed for three years, and
one such member shall be appointed for one year. Thereafter, all
members of the authority shall be appointed for three-year terms, and
any vacancy shall be filled by the same appointing power that made
the initial appointment. At the expiration of the term of any member
appointed by the chief executive officer of the most populous city in
the district before March 15, 1983, the chief executive officer of
the most populous city in the district shall fill the vacancy by
appointment for a three-year term. At the expiration of the term of
any member appointed by the board of county commissioners before
March 15, 1983, the chief executive officer of the city in the
district with the second highest number of housing units owned or
managed by the authority shall, with the approval of the municipal
legislative authority, fill the vacancy by appointment for a
three-year term. At the expiration of the term of any member
appointed before March 15, 1983, by the court of common pleas or the
probate court, the legislative authority of the most populous city in
the district shall fill the vacancy by appointment for a three-year
term.
After
March 15, 1983, at least one of the members appointed by the chief
executive officer of the most populous city shall be a resident of a
dwelling unit owned or managed by the authority. At least one of the
initial appointments by the chief executive officer of the most
populous city, after March 15, 1983, shall be a resident of a
dwelling unit owned or managed by the authority. Thereafter, any
member appointed by the chief executive officer of the most populous
city for the term established by this initial appointment, or for any
succeeding term, shall be a person who resides in a dwelling unit
owned or managed by the authority. If there is an elected,
representative body of all residents of the authority, the chief
executive officer of the most populous city shall, whenever there is
a vacancy in this resident term, provide written notice of the
vacancy to the representative body. If the representative body
submits to the chief executive officer of the most populous city, in
writing and within sixty days after the date on which it was notified
of the vacancy, the names of at least five residents of the authority
who are willing and qualified to serve as a member, the chief
executive officer of the most populous city shall appoint to the
resident term one of the residents recommended by the representative
body. At no time shall residents constitute a majority of the members
of the authority.
(D)(1)
For any metropolitan housing authority district that is located in a
county that has, according to the most recent federal decennial
census, a population greater than seven hundred thousand but less
than nine hundred thousand, the members of the metropolitan housing
authority shall be selected as follows:
(a)
One member shall be appointed by the probate court.
(b)
One member shall be appointed by the court of common pleas.
(c)
One member shall be appointed by the board of county commissioners.
(d)
Two members shall be appointed by the mayor of the most populous city
in the district, subject to approval by city council. At least one of
the initial appointments by the mayor shall be a resident of a
dwelling unit owned or managed by the authority. Thereafter, any
member appointed by the mayor of the most populous city for the term
established by the initial appointment, or for any succeeding term,
shall be a person who resides in a dwelling unit owned or managed by
the authority. If there is an elected, representative body of all
residents of the authority, the mayor of the most populous city
shall, whenever there is a vacancy in the resident term, provide
written notice of the vacancy to the representative body. If the
representative body submits to the mayor of the most populous city,
in writing and within sixty days after the date on which it was
notified of the vacancy, the names of at least five residents of the
authority who are willing and qualified to serve as a member, the
mayor of the most populous city shall appoint to the resident term
one of the residents recommended by the representative body. At no
time shall residents constitute a majority of the members of the
authority.
(e)
One member shall be nominated by the township association of the
county. The name of the nominee submitted by the township association
of the county shall be sent to the board of county commissioners and
the executive director of the metropolitan housing authority, if
applicable. The board of county commissioners shall accept or reject
the nominee.
(f)
One member shall be nominated by the municipal league of the county.
The name of the nominee submitted by the municipal league of the
county shall be sent to the board of county commissioners and the
executive director of the metropolitan housing authority, if
applicable. The nominee shall not be a resident of the district's
most populous city and shall represent a city that is substantially
impacted as described in division (I) of this section. The board of
county commissioners shall accept or reject the nominee.
(2)
At the time of the initial appointment of the authority described in
division (D)(1) of this section, the member appointed by the probate
court shall be appointed for a period of four years; the member
appointed by the court of common pleas shall be appointed for three
years; the member appointed by the board of county commissioners
shall be appointed for two years; one member appointed by the mayor
of the most populous city in the district shall be appointed for one
year, and the other member appointed by the mayor of the most
populous city in the district shall be appointed for five years; the
member nominated by the township association of the county shall be
appointed for the same number of years as the nonresident member of
the authority appointed by the mayor of the most populous city in the
district; and the member nominated by the municipal league of the
county shall be appointed for the same number of years as the
resident member of the authority appointed by the mayor of the most
populous city in the district.
After
the initial appointments, all members of the authority shall be
appointed for five-year terms, and any vacancy occurring upon the
expiration of a term shall be filled by the authority that made the
initial appointment or nomination.
(E)(1)
For any metropolitan housing authority district located in a county
that had, as of the 2000 federal census, a population of at least
four hundred thousand and no city with a population greater than
thirty per cent of the total population of the county, one member of
the authority shall be appointed by the probate court, one member
shall be appointed by the court of common pleas, one member shall be
appointed by the chief executive officer of the most populous city in
the district, and two members shall be appointed by the board of
county commissioners.
(2)
At the time of the initial appointment of a metropolitan housing
authority pursuant to this division, the member appointed by the
probate court shall be appointed for a period of four years, the
member appointed by the court of common pleas shall be appointed for
three years, the member appointed by the chief executive officer of
the most populous city shall be appointed for two years, one member
appointed by the board of county commissioners shall be appointed for
one year, and the other member appointed by the board of county
commissioners shall be appointed for five years. Thereafter, all
members of the authority shall be appointed for five-year terms, with
each term ending on the same day of the same month as the term that
it succeeds. Vacancies shall be filled in the manner provided in the
original appointments. Any member appointed to fill a vacancy
occurring prior to the expiration of the term shall hold office as a
member for the remainder of that term.
(F)(1)
One resident member shall be appointed to a metropolitan housing
authority when required by federal law. The chief executive officer
of the most populous city in the district shall appoint that resident
member for a term of five years. Subsequent terms of that resident
member also shall be for five years, and any vacancy in the position
of the resident member shall be filled by the chief executive officer
of the most populous city in the district. Any member appointed to
fill such a vacancy shall hold office as a resident member for the
remainder of that term. If, at any time, a resident member no longer
qualifies as a resident, another resident member shall be appointed
by the appointing authority who originally appointed the resident
member to serve for the unexpired portion of that term.
(2)
On and after September 29, 2005, any metropolitan housing authority
to which two additional members were appointed pursuant to former
division (E)(1) of this section as enacted by Amended Substitute
House Bill No. 95 of the 125th general assembly shall continue to
have those additional members. Their terms shall be for five years,
and vacancies in their positions shall be filled in the manner
provided for their original appointment under former division (E)(1)
of this section as so enacted.
(G)
Public officials, other than the officers having the appointing power
under this section, shall be eligible to serve as members, officers,
or employees of a metropolitan housing authority notwithstanding any
statute, charter, or law to the contrary. Not more than two such
public officials shall be members of the authority at any one time.
All
members of an authority shall serve without compensation but shall be
entitled to be reimbursed for all necessary expenses incurred.
After
a metropolitan housing authority district is formed, the director may
enlarge the territory within the district to include other political
subdivisions, or portions of other political subdivisions, but the
territorial limits of the district shall be less than that of the
county.
(H)(1)
Any vote taken by a metropolitan housing authority shall require a
majority affirmative vote to pass. A tie vote shall constitute a
defeat of any measure receiving equal numbers of votes for and
against it.
(2)
The members of a metropolitan housing authority shall act in the best
interest of the district and shall not act solely as representatives
of their respective appointing authorities.
(I)
"Substantially impacted" as used in division (D)(1)(f) of
this section means a city within a metropolitan housing authority
that, based on the percentage of housing units that are subsidized
housing, is in the top one-third of cities within the county.
Sec.
3735.39.
Whenever
a metropolitan housing authority desires to discontinue its
operations it shall make application to the director of
housing
and
development,
for authority to dissolve. If such application is granted, the
director shall take possession and dispose of all property belonging
to the authority, and, after paying the debts and liabilities of the
authority and the expenses of administering the dissolution, the
balance remaining shall be paid into the sinking fund of the county
in which the authority existed.
Sec.
3735.66.
The
legislative authority of a political subdivision may survey the
housing within the municipal corporation in the case of a municipal
corporation, the unincorporated area of the township in the case of a
limited home rule township, and the unincorporated area of the county
in the case of a county. After the survey, the legislative authority
may adopt a resolution describing the boundaries of community
reinvestment areas which contain the conditions required for the
finding under division (B) of section 3735.65 of the Revised Code.
The findings resulting from the survey shall be incorporated in the
resolution describing the boundaries of an area. The legislative
authority may stipulate in the resolution that only new structures or
remodeling classified as to use as commercial, industrial, or
residential, or some combination thereof, and otherwise satisfying
the requirements of section 3735.67 of the Revised Code are eligible
for exemption from taxation under that section. If the resolution
does not include such a stipulation, all new structures and
remodeling satisfying the requirements of section 3735.67 of the
Revised Code are eligible for exemption from taxation regardless of
classification. Whether or not the resolution includes such a
stipulation, the classification of the structures or remodeling
eligible for exemption in the area shall at all times be consistent
with zoning restrictions applicable to the area. For the purposes of
sections 3735.65 to 3735.70 of the Revised Code, whether a structure
or remodeling composed of multiple units is classified as commercial
or residential shall be determined by resolution or ordinance of the
legislative authority or, in the absence of such a determination, by
the classification of the use of the structure or remodeling under
the applicable zoning regulations.
If
construction or remodeling classified as residential is eligible for
exemption from taxation, the resolution shall specify a percentage,
not to exceed one hundred per cent, of the assessed valuation of such
property to be exempted. The percentage specified shall apply to all
residential construction or remodeling for which exemption is
granted.
Territory
of a community reinvestment area designated by a municipal
corporation shall include only territory of the municipal
corporation. Territory of an area designated by a limited home rule
township shall include only unincorporated territory of the township
that is not already included in an area designated by a county.
Territory of an area designated by a county shall include only
unincorporated territory of the county that is not already included
in an area designated by a limited home rule township.
Upon
the adoption of the resolution, the legislative authority shall send,
by certified mail, one copy of the resolution and a map of the
community reinvestment area in sufficient detail to denote the
specific boundaries of the area, to the director of
housing
and
development.
The
resolution adopted pursuant to this section shall be published in a
newspaper of general circulation in the political subdivision that
adopted the resolution once a week for two consecutive weeks or as
provided in section 7.16 of the Revised Code, immediately following
its adoption.
Each
legislative authority adopting a resolution pursuant to this section
shall designate a housing officer. The legislative authority or
housing officer shall not grant any exemption from taxation under
section 3735.67 of the Revised Code until the director assigns to
each community reinvestment area a unique designation by which the
area shall be identified for purposes of sections 3735.65 to 3735.70
of the Revised Code.
Sec.
3735.671.
(A)
If construction or remodeling of commercial or industrial property is
to be exempted from taxation pursuant to section 3735.67 of the
Revised Code, the legislative authority and the owner of the
property, prior to the commencement of construction or remodeling,
shall enter into a written agreement, binding on both parties for a
period of time that does not end prior to the end of the period of
the exemption, that includes all of the information and statements
described in divisions (B)(1) to (8) of this section. Agreements may
include terms not described in those divisions or otherwise
prescribed by the model agreement adopted by the director of
housing
and
development
under division (B) of this section, but such terms shall in no way
derogate from the information and statements described in divisions
(B)(1) to (8) of this section.
(1)
Except as otherwise provided in division (A)(2) or (3) of this
section, an agreement entered into under this section shall not be
approved by the legislative authority unless the board of education
of the city, local, or exempted village school district within the
territory of which the property is or will be located approves the
agreement. For the purpose of obtaining such approval, the
legislative authority shall certify a copy of the agreement to the
board of education not later than forty-five days prior to approving
the agreement, excluding Saturday, Sunday, and a legal holiday as
defined in section 1.14 of the Revised Code. The board of education,
by resolution adopted by a majority of the board, shall approve or
disapprove the agreement and certify a copy of the resolution to the
legislative authority not later than fourteen days prior to the date
stipulated by the legislative authority as the date upon which
approval of the agreement is to be formally considered by the
legislative authority. The board of education may include in the
resolution conditions under which the board would approve the
agreement. The legislative authority may approve an agreement at any
time after the board of education certifies its resolution approving
the agreement to the legislative authority, or, if the board approves
the agreement conditionally, at any time after the conditions are
agreed to by the board and the legislative authority.
(2)
Approval of an agreement by the board of education is not required
under division (A)(1) of this section if, for each tax year the real
property is exempted from taxation, the sum of the following
quantities, as estimated at or prior to the time the agreement is
formally approved by the legislative authority, equals or exceeds
twenty-five per cent of the amount of taxes, as estimated at or prior
to that time, that would have been charged and payable that year upon
the real property had that property not been exempted from taxation:
(a)
The amount of taxes charged and payable on any portion of the
assessed valuation of the new structure or of the increased assessed
valuation of an existing structure after remodeling began that will
not be exempted from taxation under the agreement;
(b)
The amount of taxes charged and payable on tangible personal property
located on the premises of the new structure or of the structure to
be remodeled under the agreement, whether payable by the owner of the
structure or by a related member, as defined in section 5733.042 of
the Revised Code without regard to division (B) of that section.
(c)
The amount of any cash payment by the owner of the new structure or
structure to be remodeled to the school district, the dollar value,
as mutually agreed to by the owner and the board of education, of any
property or services provided by the owner of the property to the
school district, whether by gift, loan, or otherwise, and any payment
by the legislative authority to the school district pursuant to
section 5709.82 of the Revised Code.
The
estimates of quantities used for purposes of division (A)(2) of this
section shall be estimated by the legislative authority. The
legislative authority shall certify to the board of education that
the estimates have been made in good faith. Departures of the actual
quantities from the estimates subsequent to approval of the agreement
by the board of education do not invalidate the agreement.
(3)
If a board of education has adopted a resolution waiving its right to
approve agreements and the resolution remains in effect, approval of
an agreement by the board is not required under division (A)(1) of
this section. If a board of education has adopted a resolution
allowing a legislative authority to deliver the notice required under
this division fewer than forty-five business days prior to the
legislative authority's execution of the agreement, the legislative
authority shall deliver the notice to the board not later than the
number of days prior to such execution as prescribed by the board in
its resolution. If a board of education adopts a resolution waiving
its right to approve agreements or shortening the notification
period, the board shall certify a copy of the resolution to the
legislative authority. If the board of education rescinds such a
resolution, it shall certify notice of the rescission to the
legislative authority.
(4)
If the owner of the property or the legislative authority agree to
make any payment to the school district as described in division
(A)(2)(c) of this section, the owner or legislative authority shall
agree to make payments to the joint vocational school district within
which the property is located at the same rate or amount and under
the same terms received by the city, local, or exempted village
school district.
(B)
The director of
housing
and
development
shall adopt rules in accordance with Chapter 119. of the Revised Code
prescribing the form of a model agreement that a legislative
authority may, in its discretion, use as the basis for an agreement
to be executed under this section. The model agreement may include
any term necessary for the administration and enforcement of such
agreements by the director and legislative authority, but must
include all of the following:
(1)
A space to include the description of real property to be exempted
from taxation under the agreement and to identify the property's
owners;
(2)
A space to denote the percentage of the assessed valuation of real
property exempted from taxation and the period for which the
exemption is granted;
(3)
A statement requiring the owner to pay real property taxes not
exempted under the agreement, as required by law, and requiring
rescission of the agreement if the owner fails to pay those taxes
beginning in and after the year any such taxes are charged;
(4)
A statement that the owner certifies, at the time the agreement is
executed, that the owner does not owe any delinquent property taxes
or taxes for which the owner is liable under Chapter 5735., 5739.,
5741., 5743., 5747., or 5753. of the Revised Code, or, if such
delinquent taxes are owed, that the owner is paying the delinquent
taxes pursuant to an undertaking enforceable by the state or an agent
or instrumentality thereof, has filed a petition in bankruptcy, or
has had a bankruptcy petition filed against the owner;
(5)
A statement requiring the owner to provide to the property tax
incentive review council any information reasonably required by the
council to evaluate the applicant's compliance with the agreement;
(6)
A statement that the agreement is not transferable or assignable
without the approval of the legislative authority;
(7)
A statement describing the circumstances under which the legislative
authority may revoke an agreement for noncompliance;
(8)
A statement requiring the owner to provide an estimate of the
following for each agreement:
(a)
The number of employment opportunities created due to the remodeling
or construction, as well as the payroll attributable to those
opportunities;
(b)
The number of employment opportunities retained due to the remodeling
or construction, as well as the payroll attributable to those
opportunities.
The
model agreement shall also provide that a legislative authority may,
but is not required to, include a statement describing the manner by
which the legislative authority may recover already-received
benefits, which may include an action brought in law or equity, a
lien on the exempted property in the amount to be recovered, or other
means. In the case of a lien on the exempted property, the lien shall
attach, and may be perfected, collected, and enforced, in the same
manner as a mortgage lien on real property, and otherwise has the
same force and effect as a mortgage lien on real property.
Once
the director adopts rules prescribing a model agreement under this
division, the model agreement may not be changed unless the director
adopts, amends, or rescinds those rules in accordance with Chapter
119. of the Revised Code.
(C)
If any person that is party to an agreement granting an exemption
from taxation discontinues operations at the structure to which that
exemption applies prior to the expiration of the term of the
agreement, that person, any successor to that person, and any related
member shall not enter into an agreement under this section or
section 5709.62, 5709.63, or 5709.632 of the Revised Code, and no
legislative authority shall enter into such an agreement with such a
person, successor, or related member prior to the expiration of three
years after the person's discontinuation of operations. As used in
this division, "successor" means a person to which the
assets or equity of another person has been transferred, which
transfer resulted in the full or partial nonrecognition of gain or
loss, or resulted in a carryover basis, both as determined by rule
adopted by the tax commissioner. "Related member" has the
same meaning as defined in section 5733.042 of the Revised Code
without regard to division (B) of that section.
The
director of
housing
and
development
shall review all agreements submitted to the director under section
3735.672 of the Revised Code for the purpose of enforcing this
division. If the director determines there has been a violation of
this division, the director shall notify the legislative authority of
such violation, and the legislative authority immediately shall
revoke the exemption granted under the agreement.
Sec.
3735.672.
(A)
On or before the thirty-first day of March each year, a legislative
authority that has entered into an agreement with a party under
section 3735.671 of the Revised Code shall submit to the director of
housing
and
development
a report on all such agreements in effect during the preceding
calendar year. The report shall include the following:
(1)
The total number of community reinvestment areas designated by the
political subdivision, and the total population of each area
according to the most recent data available;
(2)
The total number of agreements within each area;
(3)
The number of agreements approved and executed during the calendar
year for which the report is submitted, the total number of
agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired during
the calendar year for which the report is submitted, and the number
of agreements scheduled to expire during the calendar year in which
the report is submitted. For each agreement that expired during the
calendar year for which the report is submitted, the legislative
authority shall include the amount of taxes exempted under the
agreement.
(4)
The number of agreements the terms of which a party has failed to
comply with, indicating separately for each such agreement the value
of the real property exempted pursuant to the agreement and a
comparison of the estimated and actual amounts described in division
(B)(8) of section 3735.671 of the Revised Code;
(5)
Any changes to zoning restrictions in any part of a community
reinvestment area, including a map of the area indicating the new
zoning restrictions in the area;
(6)
A copy of any agreement approved and executed or amended during the
calendar year for which the report is submitted.
(B)
Upon the failure of a political subdivision to comply with division
(A) of this section:
(1)
Beginning on the first day of April of the calendar year in which the
political subdivision fails to comply with that division, the
political subdivision shall not enter into any agreements under
section 3735.671 of the Revised Code until the political subdivision
has complied with division (A) of this section.
(2)
On the first day of each ensuing calendar month until the political
subdivision complies with that division, the director of
housing
and
development
shall either order the proper county auditor to deduct from the next
succeeding payment of taxes to the political subdivision under
section 321.31, 321.32, 321.33, or 321.34 of the Revised Code an
amount equal to five hundred dollars for each calendar month the
political subdivision fails to comply with that division, or order
the county auditor to deduct such an amount from the next succeeding
payment to the political subdivision from the undivided local
government fund under section 5747.51 of the Revised Code. At the
time such a payment is made, the county auditor shall comply with the
director's order by issuing a warrant, drawn on the fund from which
such money would have been paid, to the director of
housing
and
development,
who shall deposit the warrant into the tax incentives operating fund
created by section 122.174 of the Revised Code.
(C)
The department of
housing
and
development
shall publish on its web site a list of all community reinvestment
areas within the state, with an accompanying display of their
geographical boundaries within each political subdivision. The list
shall also include, for each community reinvestment area, a copy of
the resolution governing that area and any agreement entered into
under section 3735.671 of the Revised Code for any commercial or
industrial property within the area. This list shall be updated
annually.
Sec.
3735.673.
If
a person operating in a political subdivision intends to relocate or
relocates part or all of its operations to another political
subdivision and has entered into or intends to enter into an
agreement under section 3735.671 of the Revised Code with that
political subdivision, the legislative authority of the political
subdivision to which that person intends to relocate or relocates
shall serve the legislative authority of the subdivision from which
that person intends to relocate or relocates with notice of the
person's intention to relocate, accompanied by a copy of the
agreement to be entered into or entered into pursuant to section
3735.671 of the Revised Code and a statement of the person's reasons
for relocation. The legislative authority also shall serve such
notice on the director of
housing
and
development.
In both cases, service shall be by personal service or certified
mail, return receipt requested, not later than thirty days prior to
the day of the first public meeting at which the agreement is
deliberated by the legislative authority of the political subdivision
to which the person intends to relocate or relocates. With the
approval of the director of
housing
and
development,
service shall be not later than fifteen days prior to the day of the
first public meeting of the legislative authority at which the
agreement is deliberated. The legislative authority required to serve
notice shall seek such approval by applying to the director at the
earliest possible time prior to that meeting. The director may
approve the later service if the director determines that earlier
notice is not possible or would be likely to jeopardize realization
of the project. If approval for a later notice is applied for, the
legislative authority need not serve notice to the director as
otherwise required by this section.
If
the legislative authority required to serve such notice fails to do
so as prescribed by this section, the legislative authority shall not
enter into an agreement under that section with that person.
This
section applies only to relocations of operations that result or
would result in the reduction of employment or the cessation of
operations at a place of business in this state.
Sec.
3735.69.
(A)
A community reinvestment area housing council shall be appointed for
each community reinvestment area, as follows:
(1)
When the area is designated by a municipal corporation, the council
shall be composed of two members appointed by the mayor of the
municipal corporation, two members appointed by the legislative
authority of the municipal corporation, and one member appointed by
the planning commission of the municipal corporation. The majority of
the foregoing members shall then appoint two additional members who
shall be residents of the municipal corporation.
(2)
When the area is designated by a limited home rule township, the
council shall be composed of two members appointed by the board of
trustees of the township, one member appointed by the township law
director, one member appointed by the township zoning commission or,
if the township has not established such a commission, the county
planning commission, and one member appointed by the board of county
commissioners of the county where the area is located.
(3)
When the area is designated by a county, the council shall be
composed of one member appointed by each member of the board of
county commissioners of the county where the area is located and two
members appointed by the county planning commission. The majority of
the foregoing members shall then appoint two additional members who
shall be residents of the county. Terms of the members of the council
shall be for three years.
An
unexpired term resulting from a vacancy in the council shall be
filled in the same manner as the initial appointment was made.
The
council shall make an annual inspection of the properties within the
community reinvestment area for which an exemption has been granted
under section 3735.67 of the Revised Code. The council shall also
hear appeals under section 3735.70 of the Revised Code.
(B)
On or before the thirty-first day of March each year, any political
subdivision that has created a community reinvestment area under
section 3735.66 of the Revised Code shall submit to the director of
housing
and
development
a status report summarizing the activities and projects for which an
exemption has been granted in that area.
Sec.
3742.32.
(A)
The director of health shall appoint an advisory council to assist in
the ongoing development and implementation of the child lead
poisoning prevention program created under section 3742.31 of the
Revised Code. The advisory council shall consist of the following
members:
(1)
A representative of the department of medicaid;
(2)
A representative of the bureau of child care in the department of job
and family services;
(3)
A representative of the department of environmental protection;
(4)
A representative of the department of education and workforce;
(5)
A representative of the department of
housing
and
development;
(6)
A representative of the department of children and youth;
(7)
A representative of the Ohio apartment owner's association;
(8)
A representative of the Ohio healthy homes network;
(9)
A representative of the Ohio environmental health association;
(10)
An Ohio representative of the American coatings association;
(11)
A representative from Ohio realtors;
(12)
A representative of the Ohio housing finance agency;
(13)
A physician knowledgeable in the field of lead poisoning prevention;
(14)
A certified nurse-midwife, clinical nurse specialist, or certified
nurse practitioner knowledgeable in the field of lead poisoning
prevention;
(15)
A representative of the public.
(B)
The advisory council shall do both of the following:
(1)
Provide the director with advice regarding the policies the child
lead poisoning prevention program should emphasize, preferred methods
of financing the program, and any other matter relevant to the
program's operation;
(2)
Submit a report of the state's activities to the governor, president
of the senate, and speaker of the house of representatives on or
before the first day of March each year.
(C)
The advisory council is not subject to sections 101.82 to 101.87 of
the Revised Code.
Sec.
3746.121.
Upon
receiving a request submitted under section 122.16 of the Revised
Code for verification of eligible costs associated with a voluntary
action incurred by the applicant for the agreement under that
section, a certified professional shall submit to the director of
housing
and
development
verification of the eligible costs associated with the voluntary
action as defined in section 122.16 of the Revised Code. The
verification shall be submitted in the form of an affidavit subject
to section 3746.20 of the Revised Code, shall state that the
information contained in the verification is true to the best of the
knowledge, information, and belief of the certified professional, and
shall be accompanied by any receipts, invoices, canceled checks, or
other documents evidencing eligible costs associated with the
voluntary action that are provided by the applicant. Verification
submitted under this section does not constitute a finding or
representation by the certified professional that eligible costs
associated with the voluntary action are reasonable.
Sec.
3746.20.
(A)
All of the following shall be submitted by affidavit:
(1)
Any information, data, documents, or reports submitted by any of the
following to another person for the purposes of a voluntary action
conducted under this chapter and rules adopted under it:
(a)
The person undertaking the voluntary action;
(b)
A certified professional;
(c)
Any other person who performed work that was conducted to support a
request for a no further action letter as provided in division (B)(2)
of section 3746.10 of the Revised Code;
(d)
A certified laboratory;
(e)
An accredited laboratory.
(2)
Any information submitted by an environmental professional to the
director of environmental protection for the purposes of complying
with rules adopted under division (B)(5)(a) or (c) of section 3746.04
of the Revised Code;
(3)
The verification of eligible costs associated with a voluntary action
submitted by a certified professional to the director of
housing
and
development
pursuant to section 3746.121 of the Revised Code.
(B)
No person shall materially falsify, tamper with, or render inaccurate
any information, data, documents, or reports generated for the
purposes of or used in documenting or preparing a no further action
letter under this chapter or rules adopted under it or verification
of eligible costs under section 3746.121 of the Revised Code.
Violation
of this division is not falsification under section 2921.13 of the
Revised Code.
(C)
In accordance with rules adopted under division (B)(5)(f) of section
3746.04 of the Revised Code, the director permanently shall revoke
the certification of a certified professional who violates division
(B) of this section.
(D)
No person, with purpose to deceive a certified professional,
accredited laboratory, or a contractor thereof, or the environmental
protection agency or a contractor thereof, shall withhold, conceal,
or destroy any data, information, records, or documents relating to a
voluntary action.
Sec.
3775.04.
(A)(1)
A type A sports gaming proprietor license authorizes a sports gaming
proprietor to offer sports gaming through one or more online sports
pools.
(2)(a)
Except as otherwise provided under division (A)(2)(b) of this
section, the Ohio casino control commission shall license not more
than twenty-five type A sports gaming proprietors at any one time.
(b)
When twenty-five type A sports gaming proprietors are licensed in
this state, the commission may issue additional type A sports gaming
proprietor licenses to eligible applicants who demonstrate to the
commission that the sports gaming market in this state needs
additional type A sports gaming proprietors.
(3)
A type A sports gaming proprietor shall meet at least one of the
following requirements at all times:
(a)
The type A sports gaming proprietor also shall operate a sports
gaming facility under a type B sports gaming proprietor license.
(b)
The type A sports gaming proprietor shall maintain at least one
operational place of business in this state at which the sports
gaming proprietor regularly maintains multiple employees.
(4)
The commission shall adopt by rule a procedure allowing the
commission to revoke a type A sports gaming proprietor license if the
licensee does not offer sports gaming to patrons under the license
for a continuous period of one year or more.
(B)(1)
A type B sports gaming proprietor license authorizes a sports gaming
proprietor to offer sports gaming at one sports gaming facility at a
location specified on the license.
(2)
The commission shall license not more than forty type B sports gaming
proprietors at any one time.
(3)(a)(i)
Except as otherwise provided in division (B)(3)(a)(ii) of this
section, no sports gaming facility shall be located in a county with
a population of less than one hundred thousand, as determined by the
2010 federal decennial census.
(ii)
The commission may issue an initial or renewed type B sports gaming
proprietor license for one sports gaming facility to be located in a
county with a population of fifty thousand or more, but less than one
hundred thousand, as determined by the 2010 federal decennial census,
at any one time, if the commission determines, in consultation with
the department of
housing
and
development,
that the county received at least five million visitors for purposes
of tourism during the most recent calendar year for which the
necessary data are available.
(b)(i)
Except as otherwise provided in division (B)(3)(b)(ii) of this
section, not more than one sports gaming facility shall be located in
a county with a population of one hundred thousand or more, but less
than four hundred thousand, as determined by the 2010 federal
decennial census, at any one time.
(ii)
Not more than two sports gaming facilities shall be located in a
county with a population of one hundred thousand or more, but less
than four hundred thousand, as determined by the 2010 federal
decennial census, at any one time, if a video lottery sales agent
operates video lottery terminals at a facility in the county.
(c)
Not more than three sports gaming facilities shall be located in a
county with a population of four hundred thousand or more, but less
than eight hundred thousand, as determined by the 2010 federal
decennial census, at any one time.
(d)
Not more than five sports gaming facilities shall be located in a
county with a population of eight hundred thousand or more, as
determined by the 2010 federal decennial census, at any one time.
(4)
The commission shall issue an initial type B sports gaming proprietor
license only to a person who conducts significant economic activity
in the county in which the sports gaming facility is to be located,
as determined by the commission in consultation with the department
of
housing
and
development.
(C)(1)
A type C sports gaming proprietor license authorizes a sports gaming
proprietor to offer sports gaming through self-service or
clerk-operated sports gaming terminals located at one or more type C
sports gaming hosts' facilities under section 3770.25 of the Revised
Code.
(2)
The commission shall license at least two, and not more than twenty,
type C sports gaming proprietors at any one time. However, if only
one eligible and suitable person applies for a type C sports gaming
proprietor license, the commission shall issue the license.
(D)
An applicant for an initial or renewed type A, type B, or type C
sports gaming proprietor license shall do all of the following:
(1)
Submit a written application on a form furnished by the commission.
(a)
If the application is for an initial type B sports gaming proprietor
license, the application shall specify both of the following:
(i)
The intended location of the sports gaming facility or, at a minimum,
the county in which the sports gaming facility is to be located if
the license is granted;
(ii)
The expected overall capital investment in the sports gaming
facility, including its size, furnishings, and equipment.
(b)
If the application is for a renewed type B sports gaming proprietor
license, the application shall specify one of the following, as
applicable:
(i)
If the sports gaming proprietor does not intend to relocate the
sports gaming facility, the location of the sports gaming facility;
(ii)
If the sports gaming proprietor intends to relocate the sports gaming
facility, the intended new location of the sports gaming facility or,
at a minimum, the county in which the sports gaming facility is to be
located if the renewal is granted.
(2)
Pay the fee required under division (C)(3) of section 109.572 of the
Revised Code, along with a nonrefundable application fee in an amount
prescribed by the commission by rule;
(3)
Submit an audit of the applicant's financial transactions and the
condition of the applicant's total operations for the previous fiscal
year prepared by a certified public accountant in accordance with
generally accepted accounting principles and state and federal laws;
(4)
Satisfy any other requirements for licensure under this chapter and
rules adopted under this chapter.
(E)
After receiving a sports gaming proprietor license, the sports gaming
proprietor shall pay the following nonrefundable license fees, as
applicable, not later than the dates indicated, and shall give to the
state a surety bond, in an amount and in the form approved by the
commission, to guarantee that the sports gaming proprietor faithfully
makes all payments required by this chapter and rules adopted under
this chapter during the period of the license:
(1)
For an initial or renewed type A sports gaming proprietor license:
1
2
3
4
5
6
A
Upon
issuance of license
One
year after license issued
Two
years after license issued
Three
years after license issued
Four
years after license issued
B
Initial
or renewed license - type A sports gaming proprietor that is a
professional sports organization and that is not contracting with
more than one mobile management services provider
$500,000
$125,000
$125,000
$125,000
$125,000
C
Initial
or renewed license - any other type A sports gaming proprietor
that is not contracting with more than one mobile management
services provider
$750,000
$187,500
$187,500
$187,500
$187,500
D
Initial
license - type A sports gaming proprietor that is a professional
sports organization and that is contracting with two mobile
management services providers
$1,666,667
$416,667
$416,667
$416,667
$416,667
E
Initial
license - any other type A sports gaming proprietor that is
contracting with two mobile management services providers
$2,500,000
$625,000
$625,000
$625,000
$625,000
F
Renewed
license - type A sports gaming proprietor that is a professional
sports organization and that is contracting with two mobile
management services providers
$500,000
$125,000
$125,000
$125,000
$125,000
G
Renewed
license - any other type A sports gaming proprietor that is
contracting with two mobile management services providers
$750,000
$187,500
$187,500
$187,500
$187,500
(2)
For an initial or renewed type B sports gaming proprietor license:
1
2
3
4
5
6
A
Upon
issuance of license
One
year after license issued
Two
years after license issued
Three
years after license issued
Four
years after license issued
B
Type
B sports gaming proprietor that is also a type A sports gaming
proprietor
$100,000
$10,000
$10,000
$10,000
$10,000
C
Type
B sports gaming proprietor that is not also a type A sports gaming
proprietor
$50,000
$10,000
$10,000
$10,000
$10,000
(3)
For a type C sports gaming proprietor license, one hundred thousand
dollars upon being issued an initial license and twenty-five thousand
dollars upon being issued a renewed license.
(F)(1)
A sports gaming proprietor license shall be valid for a term of five
years.
(2)
Upon the expiration of a sports gaming proprietor license, the sports
gaming proprietor may apply to renew the license in the same manner
as for an initial license, unless the license is suspended or revoked
or the commission determines that the sports gaming proprietor is not
in compliance with this chapter and the rules adopted under this
chapter.
Sec.
3780.03.
Establishment
and authority of division of cannabis control; adoption of rules.
(A)
There is hereby established a division of cannabis control within the
department of commerce.
(B)
To ensure the proper oversight and control of the adult use cannabis
industry, the division of cannabis control shall have the authority
to license, regulate, investigate, and penalize adult use cannabis
operators, adult use testing laboratories
,
and individuals required to be licensed under this chapter.
(C)
The division of cannabis control shall adopt, and as advisable and
necessary shall amend or repeal, rules on the following:
(1)
Prevention of practices detrimental to the public interest consistent
with this chapter, and also ways to educate the public about this
chapter;
(2)
Establishing application, licensure
,
and renewal standards and procedures for license applicants or
license holders related to adult use cannabis operators, adult use
testing laboratories, and individuals required to be licensed,
including any additional background check requirements, the
disqualifying offenses under section 3780.01 of the Revised Code that
prohibit licensure, and any exemption criteria from licensing
requirements for institutional or private investors who do not have
significant control or influence over a license applicant or license
holder, and whose ownership in a license is for investment purposes
only;
(3)
Establishing reasonable application, licensure
,
and renewal fees amounts to ensure license applicants and license
holders under this chapter pay for the actual costs for
administration and licensure for the division of cannabis control;
(4)
Establishing standards for provisional licenses for an individual who
is required to be licensed and who has exigent circumstances. Such
standards for provisional licenses must include submission of a
complete application and compliance with a required background check.
A provisional license shall be valid not longer than three months. A
provisional license may be renewed, at the division of cannabis
control's discretion, for an additional three months. In establishing
standards with regard to instant background checks the division of
cannabis control may use all available resources
;
.
(5)
Specifying the process and reasons for which a license holder may be
fined, suspended either with or without a prior hearing, revoked, or
not renewed or issued;
(6)
The process and requirements for division of cannabis control
approval of any requested change in ownership or transfer of control
of an adult use cannabis operator or adult use testing laboratory;
(7)
Establishing
process
processes
and
standards for expanding the size of the cultivation area for a
cultivation facility;
(8)
Establishing standards and procedures for the testing of adult use
cannabis by an adult use testing laboratory licensed under this
chapter. When establishing standards and procedures for the testing
of cannabis, the division of cannabis control shall do all of the
following:
(a)
Specify when testing must be conducted;
(b)
Determine the minimum amount of adult use cannabis that must be
tested;
(c)
Specify the manner in which testing is to be conducted in an effort
to ensure uniformity of cannabis products processed
for
and
dispensed; and
(d)
Specify the manner in which test results are provided.
(9)
The minimum amount of insurance or surety bond that must be
maintained by an adult use cannabis operator and adult use testing
laboratory;
(10)
Requiring the division of cannabis control to adopt reasonable
standards for any adult use cannabis samples, and advertising as
prescribed in section 3780.21 of the Revised Code;
(11)
Requiring that the records, including financial statements, of an
adult use cannabis operator or adult use testing laboratory be
maintained in the manner up to two years as prescribed by the
division of cannabis control and which shall be made available for
inspection upon demand by the division of cannabis control, but shall
be subject to section 3780.31 of the Revised Code;
(12)
Prescribing technical standards and requirements consistent with
industry standards that must be met for security and surveillance
equipment necessary for the provision of security and surveillance of
adult use cannabis operators and adult use testing laboratories;
(13)
Prescribing requirements for a license holder's provision of security
services for an adult use cannabis operator and adult use testing
laboratories which shall include the license holder's option to use
armed or unarmed services including through agents of the license
holder;
(14)
Prescribing standards according to which license holders shall keep
accounts and standards according to which adult use cannabis
operators and adult use testing laboratories accounts shall be
audited, and establish guidance for assisting the department of
taxation in levying and collecting the adult use tax levied under
section 3780.22 of the Revised Code;
(15)
Determining penalties for violation of division of cannabis control
rules or this chapter, and a process for imposing such penalties;
(16)
Training requirements for employees and agents of adult use cannabis
operators and adult use laboratories;
(17)
Prescribing standards and procedures to allow for adult use cannabis
delivery to adult use consumers, and online and mobile ordering
procedures, which may only be conducted by an adult use dispensary or
their agent;
(18)
Prescribing cannabis inventory requirements to be maintained in an
electronic database consistent with section 3780.05 of the Revised
Code;
(19)
Prescribing standards and procedures for product packaging and
labeling of adult use cannabis products;
(20)
Prescribing standards and procedures in coordination with the
department of
housing
and
development
to administer and enforce the cannabis social equity and jobs program
as prescribed under
section
3780.19
of the Revised Code;
(21)
Establishing a tetrahydrocannabinol content limit for adult use
cannabis, which for plant material the content limit shall be
no
not
less
than thirty-five per cent and for extracts the content limit shall be
no
not
less
than ninety per cent, but that such content limits may be increased
or eliminated by the division of cannabis control; and
(22)
Prescribing duty to update requirements for license holders.
(D)
All rules adopted under this section and chapter shall be adopted in
accordance with Chapter 119
.
of
the Revised Code.
(E)
In addition to the rules described in division (C) of this section,
the division of cannabis control may adopt any other rules it
considers necessary for the administration, implementation, and
enforcement of this chapter consistent with this chapter.
(F)
When adopting rules under this section, the division of cannabis
control shall consider standards and procedures that have been found
to be best practices relative to the use and regulation of adult use
cannabis and shall harmonize any rules with the rules adopted
pursuant to sections 3796.03 and 3796.04 of the Revised Code to
minimize duplication of operational requirements and fees as much as
possible. If there is a conflict with Chapter 3796
.
of the Revised Code
and related rules, and
chapter
Chapter
3780
.
of the Revised Code and related rules, then
chapter
Chapter
3780
.
of the Revised Code
and related rules shall govern.
Sec.
3780.19.
Cannabis
social equity and jobs program.
(A)
As used in this section, "cannabis social equity and jobs
program participant" means a person certified as a participant
in the cannabis social equity
and
jobs
program
by the department of
housing
and
development
under this section
of the Revised Code
.
(B)
The department of
housing
and
development
shall establish a business assistance program known as the cannabis
social equity and jobs program funded by the cannabis social equity
and jobs fund, and shall adopt rules in accordance with Chapter 119
.
of the Revised Code to administer the program including the
following:
(1)
Establish procedures by which a person may apply for certification
under the cannabis social equity and jobs program;
(2)
Establish a system of certifying cannabis social equity and
job
jobs
program
applicants based on a requirement that the business owner or owners
show both social and economic disadvantage based on the following, as
determined to be sufficient by the department of
housing
and
development:
(a)
Wealth of the business seeking certification as well as the personal
wealth of the owner or owners of the business
.
;
(b)
Social disadvantage based on any of the following:
(i)
The business owner or owners demonstrate membership in a racial
minority group or show personal disadvantage due to color, ethnic
origin, gender, physical disability, or long-term residence in an
area of high unemployment;
(ii)
The owner or owners, or their spouse, child, or parent, have been
arrested for, convicted of, or adjudicated delinquent for a marijuana
related offense as determined by rule by the department of
housing
and
development
prior to the effective date of this section.
(c)
Economic disadvantage based on economic and business size thresholds
and eligibility criteria designed to stimulate economic development
through license awards to businesses located in qualified census
tracts.
(3)
Establish standards to determine when a cannabis social equity and
jobs program participant no longer qualifies for cannabis social
equity
and
jobs
program
certification;
(4)
Develop a process for evaluating and adjusting goals established by
this section to determine what adjustments are necessary to achieve
participation goals established by the department of
housing
and
development;
(5)
Implement an outreach program to educate potential participants about
the cannabis social equity and jobs program;
(6)
Implement a system of self-reporting by cannabis social equity and
jobs program participants on compliance, as well as an on-site
inspection process to validate the qualifications of a cannabis
social equity
and
jobs
program;
(7)
Establish a process for when there is a transfer of a license from a
certified cannabis social equity and jobs program participant to a
person or entity that does not qualify as a participant to the
cannabis social equity and jobs program, which process shall not
undermine the policy goals of the program;
(8)
Provide financial assistance, loans, grants, and technical assistance
to persons certified by the department under the cannabis social
equity and jobs program pursuant to rules adopted under this section.
Notwithstanding any other law to the contrary, the cannabis social
equity and jobs program fund is not subject to budgetary sweeps,
administrative charge-backs, or any other fiscal or budgetary
maneuver that would in any way transfer any amounts from the cannabis
social equity and jobs program fund into any other fund of the state;
(9)
Encourage employment practices, in which an adult use cannabis
operator can demonstrate a plan of action to inform, hire, and
educate minorities, women, veterans, and persons with disabilities
,
;
engage
in fair labor practices
,
;
and
provide worker protections;
(10)
Study and fund judicial and criminal justice reform including bail,
parole, sentencing reform, expungement and sealing of records, legal
aid, and community policing related to marijuana;
(11)
Study and propose policy reforms to address the social and economic
impacts of the enforcement of marijuana laws and to track and prevent
underage use of marijuana;
(12)
Fund direct investment in disproportionately impacted communities to
enhance education, entrepreneurism, legal aid, youth development,
violence prevention, and the arts related to the program; and
(13)
Utilize the cannabis social equity and jobs fund exclusively for the
purposes of this section and for the implementation of this section.
(C)
For certified cannabis social equity and job program participants,
the division of cannabis control shall waive at least fifty
percent
per
cent
of
any license or application fees associated with a license holder's
application or license.
(D)
Any business or personal financial information, or trade secrets
submitted by a cannabis social equity and jobs program applicant to
the department of
housing
and
development
pursuant to this section are not public records for purposes of
section 149.43 of the Revised Code, unless the division of cannabis
control or department of
housing
and
development
is required to present the financial information or trade secrets at
a public hearing or public proceeding regarding the applicant's
eligibility to participate in the program in which case the agency
shall only disclose any required information.
(E)
Any license or other preference to persons certified under the
cannabis social equity and jobs program under this section shall be
based on substantiated evidence that the preference is needed to
address the goals of cannabis social equity and
job
jobs
program
under this chapter.
(F)
The department of
housing
and
development
shall create a cannabis social equity and jobs program advisory group
promulgated through rule in accordance with Chapter 119
.
of
the Revised Code. The advisory group may develop and submit to the
department of
housing
and
development
on
any
recommendations related to the cannabis social equity and jobs
program under sections 3780.18 and 3780.19 of the Revised Code.
Sec.
4121.123.
(A)
There is hereby created the workers' compensation board of directors
nominating committee consisting of the following:
(1)
Three individuals who are members of affiliated employee
organizations of the Ohio chapter of the American federation of
labor-congress of industrial organizations, who are selected by the
Ohio chapter of the American federation of labor-congress of
industrial organizations and who, on account of their previous
vocation, employment, or affiliations, can be classed as
representative of employees who are members of an employee
organization. Terms of office shall be for one year, with each term
ending on the same day of the same month as did the term that it
succeeds.
(2)
Two individuals who, on account of their previous vocation,
employment, or affiliations, can be classed as representative of
employees, one of whom shall be an injured worker with a valid, open,
and active workers' compensation claim and at least one of these two
representatives also shall represent employees who are not members of
an employee organization. The president of the senate and the speaker
of the house of representatives each shall appoint annually one of
these members. The member who is an injured worker shall serve for a
full term even if the member's workers' compensation claim is
invalidated, closed, or inactivated during the member's term.
(3)
The chief executive officer, or the equivalent of the chief executive
officer, of the Ohio chamber of commerce, the Ohio manufacturers'
association, the Ohio self-insurers' association, the Ohio council of
retail merchants, the national federation of independent business,
and the Ohio farm bureau;
(4)
The director of
housing
and
development;
(5)
The president of the Ohio township association and the president of
the Ohio county commissioners association, or if any of the following
circumstances apply:
(a)
In the event of a vacancy in either presidency, a designee appointed
by the governing body authorized to appoint the president. A designee
so appointed shall serve on the nominating committee only until the
vacancy in the presidency is filled.
(b)
In the event that the president of the Ohio township association is
unavailable, a designee selected by the president;
(c)
In the event that the president of the Ohio county commissioners
association is unavailable, a designee selected by the president.
(B)
Each member appointed under divisions (A)(1) and (2) of this section
shall hold office from the date of the member's appointment until the
end of the term for which the member was appointed. Such members may
be reappointed. Vacancies shall be filled in the manner provided for
original appointments. Any such member appointed to fill a vacancy
occurring prior to the expiration date of the term for which the
member's predecessor was appointed shall hold office as a member for
the remainder of that term. Such a member shall continue in office
subsequent to the expiration date of the member's term until the
member's successor takes office or until a period of sixty days has
elapsed, whichever occurs first.
(C)
The nominating committee shall meet at the request of the governor or
as the nominating committee determines appropriate in order to make
recommendations to the governor for the appointment of members of the
bureau of workers' compensation board of directors under section
4121.12 of the Revised Code.
(D)
The director of
housing
and
development
shall serve as chairperson of the nominating committee and have no
voting rights on matters coming before the nominating committee,
except that the director may vote in the event of a tie vote of the
nominating committee. Annually, the nominating committee shall select
a secretary from among its members. The nominating committee may
adopt by-laws governing its proceedings.
(E)
Members of the nominating committee shall be paid their reasonable
and necessary expenses pursuant to section 126.31 of the Revised Code
while engaged in the performance of their duties as members of the
nominating committee.
(F)
The nominating committee shall:
(1)
Review and evaluate possible appointees for the board. In reviewing
and evaluating possible appointees for the board, the nominating
committee may accept comments from, cooperate with, and request
information from any person.
(2)
Make recommendations to the governor for the appointment of members
to the board as provided in division (C) of section 4121.12 of the
Revised Code.
(G)
The nominating committee may make recommendations to the general
assembly concerning changes in legislation that will assist the
nominating committee in the performance of its duties.
Sec.
4164.04.
There
is hereby created and constituted within the department of
housing
and
development,
the Ohio nuclear development authority. The authority's exercise of
powers conferred by this chapter is the performance of an essential
governmental function and addresses matters of public necessity for
which public moneys may be spent.
Sec.
4164.12.
For
the purpose of carrying out the Ohio nuclear development authority's
duties under the Revised Code, the authority may make use of the
staff and experts employed at the department of
housing
and
development
in such manner as is provided by mutual arrangement between the
authority and the department.
Sec.
4301.17.
(A)(1)
Subject to local option as provided in sections 4301.32 to 4301.40 of
the Revised Code, five state liquor stores or agencies may be
established in each county. One additional store may be established
in any county for each twenty thousand of population of that county
or major fraction thereof in excess of the first forty thousand,
according to the last preceding federal decennial census or according
to the population estimates certified by the department of
housing
and
development
between decennial censuses. A person engaged in a mercantile business
may act as the agent for the division of liquor control for the sale
of spirituous liquor in a municipal corporation, in the
unincorporated area of a township, or in an area designated and
approved as a resort area under section 4303.262 of the Revised Code.
The division shall fix the compensation for such an agent in the
manner it considers best, but the compensation shall not exceed seven
per cent of the gross sales made by the agent in any one year.
(2)
The division shall adopt rules in accordance with Chapter 119. of the
Revised Code governing the allocation and equitable distribution of
agency store contracts. The division shall comply with the rules when
awarding a contract under division (A)(1) of this section.
(3)
Pursuant to an agency store's contract, an agency store may be issued
a D-1 permit to sell beer, a D-2 permit to sell wine and mixed
beverages, and a D-5 permit to sell beer, wine, mixed beverages, and
spirituous liquor.
(4)
Pursuant to an agency store's contract, an agency store may be issued
a D-3 permit to sell spirituous liquor if the agency store contains
at least ten thousand square feet of sales floor area. A D-3 permit
issued to an agency store shall not be transferred to a new location.
The division shall revoke any D-3 permit issued to an agency store
under division (A)(4) of this section if the agent no longer operates
the agency store. The division shall not issue a D-3a permit to an
agency store.
(5)
An agency store to which a D-8 permit has been issued may allow the
consumption of tasting samples of spirituous liquor in accordance
with section 4301.171 of the Revised Code.
(6)
An agency store may sell beer, wine, mixed beverages, and spirituous
liquor only between the hours of nine a.m. and eleven p.m.
(B)
When an agency contract is proposed, when an existing agency contract
is assigned, when an existing agency proposes to relocate, or when an
existing agency is relocated and assigned, before entering into any
contract, consenting to any assignment, or consenting to any
relocation, the division shall notify the legislative authority of
the municipal corporation in which the agency store is to be located,
or the board of county commissioners and the board of township
trustees of the county and the township in which the agency store is
to be located if the agency store is to be located outside the
corporate limits of a municipal corporation, of the proposed
contract, assignment, or relocation, and an opportunity shall be
provided officials or employees of the municipal corporation or
county and township for a complete hearing upon the advisability of
entering into the contract or consenting to the assignment or
relocation. When the division sends notice to the legislative
authority of the political subdivision, the division shall notify the
chief peace officer of the political subdivision, who may appear and
testify, either in person or through a representative, at any hearing
held on the advisability of entering into the contract or consenting
to the assignment or relocation.
If
the proposed agency store, the assignment of an agency contract, or
the relocation of an agency store would be located within five
hundred feet of a school, church, library, public playground, or
township park, the division shall not enter into an agency contract
until it has provided notice of the proposed contract to the
authorities in control of the school, church, library, public
playground, or township park and has provided those authorities with
an opportunity for a complete hearing upon the advisability of
entering into the contract. If an agency store so located is
operating under an agency contract, the division may consent to
relocation of the agency store or to the assignment of that contract
to operate an agency store at the same location. The division may
also consent to the assignment of an existing agency contract
simultaneously with the relocation of the agency store. In any such
assignment or relocation, the assignee and the location shall be
subject to the same requirements that the existing location met at
the time that the contract was first entered into as well as any
additional requirements imposed by the division in rules adopted by
the superintendent of liquor control. The division shall not consent
to an assignment or relocation of an agency store until it has
notified the authorities in control of the school, church, library,
public playground, or township park and has provided those
authorities with an opportunity for a complete hearing upon the
advisability of consenting to the assignment or relocation.
Any
hearing provided for in this division shall be held in the central
office of the division, except that upon written request of the
legislative authority of the municipal corporation, the board of
county commissioners, the board of township trustees, or the
authorities in control of the school, church, library, public
playground, or township park, the hearing shall be held in the county
seat of the county where the proposed agency store is to be located.
(C)
All agency contracts entered into by the division pursuant to this
section shall be in writing and shall contain a clause providing for
the termination of the contract at will by the division upon its
giving ninety days' notice in writing to the agent of its intention
to do so. Any agency contract may include a clause requiring the
agent to report to the appropriate law enforcement agency the name
and address of any individual under twenty-one years of age who
attempts to make an illegal purchase.
The
division shall issue a C-1 and C-2 permit to each agent who prior to
November 1, 1994, had not been issued both of these permits,
notwithstanding the population quota restrictions contained in
section 4303.29 of the Revised Code or in any rule of the liquor
control commission and notwithstanding the requirements of section
4303.31 of the Revised Code. The location of a C-1 or C-2 permit
issued to such an agent shall not be transferred. The division shall
revoke any C-1 or C-2 permit issued to an agent under this paragraph
if the agent no longer operates an agency store.
The
division may enter into agreements with the department of
housing
and
development
to implement a minority loan program to provide low-interest loans to
minority business enterprises, as defined in section 122.71 of the
Revised Code, that are awarded liquor agency contracts or
assignments.
(D)
If the division closes a state liquor store and replaces that store
with an agency store, any employees of the division employed at that
state liquor store who lose their jobs at that store as a result
shall be given preference by the agent who operates the agency store
in filling any vacancies that occur among the agent's employees, if
that preference does not conflict with the agent's obligations
pursuant to a collective bargaining agreement.
If
the division closes a state liquor store and replaces the store with
an agency store, any employees of the division employed at the state
liquor store who lose their jobs at that store as a result may
displace other employees as provided in sections 124.321 to 124.328
of the Revised Code. If an employee cannot displace other employees
and is laid off, the employee shall be reinstated in another job as
provided in sections 124.321 to 124.328 of the Revised Code, except
that the employee's rights of reinstatement in a job at a state
liquor store shall continue for a period of two years after the date
of the employee's layoff and shall apply to jobs at state liquor
stores located in the employee's layoff jurisdiction and any layoff
jurisdiction adjacent to the employee's layoff jurisdiction.
(E)
The division shall require every agent to give bond with surety to
the satisfaction of the division, in the amount the division fixes,
conditioned for the faithful performance of the agent's duties as
prescribed by the division.
Sec.
4303.181.
(A)
Permit D-5a may be issued either to the owner or operator of a hotel
or motel that is required to be licensed under section 3731.03 of the
Revised Code, that contains at least fifty rooms for registered
transient guests or is owned by a state institution of higher
education as defined in section 3345.011 of the Revised Code or a
private college or university, and that qualifies under the other
requirements of this section, or to the owner or operator of a
restaurant specified under this section, to sell beer and any
intoxicating liquor at retail, only by the individual drink in glass
and from the container, for consumption on the premises where sold,
and to registered guests in their rooms, which may be sold by means
of a controlled access alcohol and beverage cabinet in accordance
with division (B) of section 4301.21 of the Revised Code; and to sell
the same products in the same manner and amounts not for consumption
on the premises as may be sold by holders of D-1 and D-2 permits. The
premises of the hotel or motel shall include a retail food
establishment or a food service operation licensed pursuant to
Chapter 3717. of the Revised Code that operates as a restaurant for
purposes of this chapter and that is affiliated with the hotel or
motel and within or contiguous to the hotel or motel, and that serves
food within the hotel or motel, but the principal business of the
owner or operator of the hotel or motel shall be the accommodation of
transient guests. In addition to the privileges authorized in this
division, the holder of a D-5a permit may exercise the same
privileges, and shall observe the same hours of operation, as the
holder of a D-5 permit.
The
owner or operator of a hotel, motel, or restaurant who qualified for
and held a D-5a permit on August 4, 1976, may, if the owner or
operator held another permit before holding a D-5a permit, either
retain a D-5a permit or apply for the permit formerly held, and the
division of liquor control shall issue the permit for which the owner
or operator applies and formerly held, notwithstanding any quota.
A
D-5a permit shall not be transferred to another location. No quota
restriction shall be placed on the number of D-5a permits that may be
issued.
The
fee for this permit is two thousand three hundred forty-four dollars.
(B)
Permit D-5b may be issued to the owner, operator, tenant, lessee, or
occupant of an enclosed shopping center to sell beer and intoxicating
liquor at retail, only by the individual drink in glass and from the
container, for consumption on the premises where sold; and to sell
the same products in the same manner and amount not for consumption
on the premises as may be sold by holders of D-1 and D-2 permits. In
addition to the privileges authorized in this division, the holder of
a D-5b permit may exercise the same privileges, and shall observe the
same hours of operation, as a holder of a D-5 permit.
A
D-5b permit shall not be transferred to another location.
One
D-5b permit may be issued at an enclosed shopping center containing
at least two hundred twenty-five thousand, but less than four hundred
thousand, square feet of floor area.
Two
D-5b permits may be issued at an enclosed shopping center containing
at least four hundred thousand square feet of floor area. No more
than one D-5b permit may be issued at an enclosed shopping center for
each additional two hundred thousand square feet of floor area or
fraction of that floor area, up to a maximum of five D-5b permits for
each enclosed shopping center. The number of D-5b permits that may be
issued at an enclosed shopping center shall be determined by
subtracting the number of D-3 and D-5 permits issued in the enclosed
shopping center from the number of D-5b permits that otherwise may be
issued at the enclosed shopping center under the formulas provided in
this division. Except as provided in this section, no quota shall be
placed on the number of D-5b permits that may be issued.
Notwithstanding any quota provided in this section, the holder of any
D-5b permit first issued in accordance with this section is entitled
to its renewal in accordance with section 4303.271 of the Revised
Code.
The
holder of a D-5b permit issued before April 4, 1984, whose tenancy is
terminated for a cause other than nonpayment of rent, may return the
D-5b permit to the division of liquor control, and the division shall
cancel that permit. Upon cancellation of that permit and upon the
permit holder's payment of taxes, contributions, premiums,
assessments, and other debts owing or accrued upon the date of
cancellation to this state and its political subdivisions and a
filing with the division of a certification of that payment, the
division shall issue to that person either a D-5 permit, or a D-1, a
D-2, and a D-3 permit, as that person requests. The division shall
issue the D-5 permit, or the D-1, D-2, and D-3 permits, even if the
number of D-1, D-2, D-3, or D-5 permits currently issued in the
municipal corporation or in the unincorporated area of the township
where that person's proposed premises is located equals or exceeds
the maximum number of such permits that can be issued in that
municipal corporation or in the unincorporated area of that township
under the population quota restrictions contained in section 4303.29
of the Revised Code. Any D-1, D-2, D-3, or D-5 permit so issued shall
not be transferred to another location. If a D-5b permit is canceled
under the provisions of this paragraph, the number of D-5b permits
that may be issued at the enclosed shopping center for which the D-5b
permit was issued, under the formula provided in this division, shall
be reduced by one if the enclosed shopping center was entitled to
more than one D-5b permit under the formula.
The
fee for this permit is two thousand three hundred forty-four dollars.
(C)
Permit D-5c may be issued to the owner or operator of a retail food
establishment or a food service operation licensed pursuant to
Chapter 3717. of the Revised Code that operates as a restaurant for
purposes of this chapter and that qualifies under the other
requirements of this section to sell beer and any intoxicating liquor
at retail, only by the individual drink in glass and from the
container, for consumption on the premises where sold, and to sell
the same products in the same manner and amounts not for consumption
on the premises as may be sold by holders of D-1 and D-2 permits. In
addition to the privileges authorized in this division, the holder of
a D-5c permit may exercise the same privileges, and shall observe the
same hours of operation, as the holder of a D-5 permit.
To
qualify for a D-5c permit, the owner or operator of a retail food
establishment or a food service operation licensed pursuant to
Chapter 3717. of the Revised Code that operates as a restaurant for
purposes of this chapter, shall have operated the restaurant at the
proposed premises for not less than twenty-four consecutive months
immediately preceding the filing of the application for the permit,
have applied for a D-5 permit no later than December 31, 1988, and
appear on the division's quota waiting list for not less than six
months immediately preceding the filing of the application for the
permit. In addition to these requirements, the proposed D-5c permit
premises shall be located within a municipal corporation and further
within an election precinct that, at the time of the application, has
no more than twenty-five per cent of its total land area zoned for
residential use.
A
D-5c permit shall not be transferred to another location. No quota
restriction shall be placed on the number of such permits that may be
issued.
Any
person who has held a D-5c permit for at least two years may apply
for a D-5 permit, and the division of liquor control shall issue the
D-5 permit notwithstanding the quota restrictions contained in
section 4303.29 of the Revised Code or in any rule of the liquor
control commission.
The
fee for this permit is one thousand five hundred sixty-three dollars.
(D)(1)
Permit D-5d may be issued to the owner or operator of a retail food
establishment or a food service operation licensed pursuant to
Chapter 3717. of the Revised Code that operates as a restaurant for
purposes of this chapter and that is located at an airport operated
by a municipal corporation, at an airport operated by a board of
county commissioners pursuant to section 307.20 of the Revised Code,
at an airport operated by a port authority pursuant to Chapter 4582.
of the Revised Code, or at an airport operated by a regional airport
authority pursuant to Chapter 308. of the Revised Code.
(2)
The holder of a D-5d permit may sell either of the following:
(a)
Beer and any intoxicating liquor at retail, only by the individual
drink in glass and from the container, for consumption on the
premises where sold. In addition, such consumption may occur in the
area of the airport terminal that is restricted to persons taking
flights to and from the airport, provided all of the following apply:
(i)
The airport's governing body authorizes the consumption of beer and
intoxicating liquor in that area.
(ii)
The D-5d permit holder is located in that area.
(iii)
The airport is a public-use airport, as defined in section 4563.30 of
the Revised Code, that has commercial flight activity and has one or
more passenger or property screening checkpoints or restricted areas
used as security measures.
(iv)
The beer or intoxicating liquor is served solely in plastic bottles
or other plastic containers that clearly identify the D-5d permit
holder.
(b)
The same products in the same manner and amounts not for consumption
on the premises where sold as may be sold by the holders of D-1 and
D-2 permits.
In
addition to the privileges authorized in division (D) of this
section, the holder of a D-5d permit may exercise the same
privileges, and shall observe the same hours of operation, as the
holder of a D-5 permit.
(3)
A D-5d permit shall not be transferred to another location. No quota
restrictions shall be placed on the number of such permits that may
be issued.
(4)
The fee for the D-5d permit is two thousand three hundred forty-four
dollars.
(E)
Permit D-5e may be issued to any nonprofit organization that is
exempt from federal income taxation under the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501(c)(3), as
amended, or that is a charitable organization under any chapter of
the Revised Code, and that owns or operates a riverboat that meets
all of the following:
(1)
Is permanently docked at one location;
(2)
Is designated as an historical riverboat by the Ohio history
connection;
(3)
Contains not less than fifteen hundred square feet of floor area;
(4)
Has a seating capacity of fifty or more persons.
The
holder of a D-5e permit may sell beer and intoxicating liquor at
retail, only by the individual drink in glass and from the container,
for consumption on the premises where sold.
A
D-5e permit shall not be transferred to another location. No quota
restriction shall be placed on the number of such permits that may be
issued. The population quota restrictions contained in section
4303.29 of the Revised Code or in any rule of the liquor control
commission shall not apply to this division, and the division shall
issue a D-5e permit to any applicant who meets the requirements of
this division. However, the division shall not issue a D-5e permit if
the permit premises or proposed permit premises are located within an
area in which the sale of spirituous liquor by the glass is
prohibited.
In
addition to the privileges authorized in this division, the holder of
a D-5e permit may exercise the same privileges, and shall observe the
same hours of operation, as the holder of a D-5 permit.
The
fee for this permit is one thousand two hundred nineteen dollars.
(F)
Permit D-5f may be issued to the owner or operator of a retail food
establishment or a food service operation licensed under Chapter
3717. of the Revised Code that operates as a restaurant for purposes
of this chapter and that meets all of the following:
(1)
It contains not less than twenty-five hundred square feet of floor
area.
(2)
It is located on or in, or immediately adjacent to, the shoreline of,
a navigable river.
(3)
It provides docking space for twenty-five boats.
(4)
It provides entertainment and recreation, provided that not less than
fifty per cent of the business on the permit premises shall be
preparing and serving meals for a consideration.
In
addition, each application for a D-5f permit shall be accompanied by
a certification from the local legislative authority that the
issuance of the D-5f permit is not inconsistent with that political
subdivision's comprehensive development plan or other economic
development goal as officially established by the local legislative
authority.
The
holder of a D-5f permit may sell beer and intoxicating liquor at
retail, only by the individual drink in glass and from the container,
for consumption on the premises where sold.
A
D-5f permit shall not be transferred to another location.
The
division of liquor control shall not issue a D-5f permit if the
permit premises or proposed permit premises are located within an
area in which the sale of spirituous liquor by the glass is
prohibited. In addition to the privileges authorized in this
division, the holder of a D-5f permit may exercise the same
privileges, and shall observe the same hours of operation, as the
holder of a D-5 permit.
A
fee for this permit is two thousand three hundred forty-four dollars.
As
used in this division, "navigable river" means a river that
is also a "navigable water" as defined in the "Federal
Power Act," 94 Stat. 770 (1980), 16 U.S.C. 796.
(G)
Permit D-5g may be issued to a nonprofit corporation that is either
the owner or the operator of a national professional sports museum.
The holder of a D-5g permit may sell beer and any intoxicating liquor
at retail, only by the individual drink in glass and from the
container, for consumption on the premises where sold. The holder of
a D-5g permit shall sell no beer or intoxicating liquor for
consumption on the premises where sold after two-thirty a.m. A D-5g
permit shall not be transferred to another location. No quota
restrictions shall be placed on the number of D-5g permits that may
be issued. In addition to the privileges authorized in this division,
the holder of a D-5g permit may exercise the same privileges, and
shall observe the same hours of operation, as the holder of a D-5
permit.
The
fee for this permit is one thousand eight hundred seventy-five
dollars.
(H)(1)
Permit D-5h may be issued to any nonprofit organization that is
exempt from federal income taxation under the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501(c)(3), as
amended, that owns or operates any of the following:
(a)
A fine arts museum, provided that the nonprofit organization has no
less than one thousand five hundred bona fide members possessing full
membership privileges;
(b)
A community arts center. As used in division (H)(1)(b) of this
section, "community arts center" means a facility that
provides arts programming to the community in more than one arts
discipline, including, but not limited to, exhibits of works of art
and performances by both professional and amateur artists.
(c)
A community theater, provided that the nonprofit organization is a
member of the Ohio arts council and the American community theatre
association and has been in existence for not less than ten years. As
used in division (H)(1)(c) of this section, "community theater"
means a facility that contains at least one hundred fifty seats and
has a primary function of presenting live theatrical performances and
providing recreational opportunities to the community.
(2)
The holder of a D-5h permit may sell beer and any intoxicating liquor
at retail, only by the individual drink in glass and from the
container, for consumption on the premises where sold. A D-5h permit
shall not be transferred to another location. No quota restrictions
shall be placed on the number of D-5h permits that may be issued.
(3)
In addition to the privileges authorized in this division, the holder
of a D-5h permit may exercise the same privileges, and shall observe
the same hours of operation, as the holder of a D-5 permit.
(4)
The fee for a D-5h permit is one thousand eight hundred seventy-five
dollars.
(I)
Permit D-5i may be issued to the owner or operator of a retail food
establishment or a food service operation licensed under Chapter
3717. of the Revised Code that operates as a restaurant for purposes
of this chapter and that meets all of the following requirements:
(1)
It is located in a municipal corporation or a township with a
population of one hundred thousand or less.
(2)
It has inside seating capacity for at least one hundred forty
persons.
(3)
It has at least four thousand square feet of floor area.
(4)
It offers full-course meals, appetizers, and sandwiches.
(5)
Its receipts from beer and liquor sales, excluding wine sales, do not
exceed twenty-five per cent of its total gross receipts.
(6)
It has at least one of the following characteristics:
(a)
The value of its real and personal property exceeds seven hundred
twenty-five thousand dollars.
(b)
It is located on property that is owned or leased by the state or a
state agency, and its owner or operator has authorization from the
state or the state agency that owns or leases the property to obtain
a D-5i permit.
The
holder of a D-5i permit may sell beer and any intoxicating liquor at
retail, only by the individual drink in glass and from the container,
for consumption on the premises where sold, and may sell the same
products in the same manner and amounts not for consumption on the
premises where sold as may be sold by the holders of D-1 and D-2
permits. In addition to the privileges authorized in this division,
the holder of a D-5i permit may exercise the same privileges, and
shall observe the same hours of operation, as the holder of a D-5
permit.
A
D-5i permit shall not be transferred to another location. The
division of liquor control shall not renew a D-5i permit unless the
retail food establishment or food service operation for which it is
issued continues to meet the requirements described in divisions
(I)(1) to (6) of this section. No quota restrictions shall be placed
on the number of D-5i permits that may be issued. The fee for the
D-5i permit is two thousand three hundred forty-four dollars.
(J)
Permit D-5j may be issued to the owner or the operator of a retail
food establishment or a food service operation licensed under Chapter
3717. of the Revised Code to sell beer and intoxicating liquor at
retail, only by the individual drink in glass and from the container,
for consumption on the premises where sold and to sell beer and
intoxicating liquor in the same manner and amounts not for
consumption on the premises where sold as may be sold by the holders
of D-1 and D-2 permits. The holder of a D-5j permit may exercise the
same privileges, and shall observe the same hours of operation, as
the holder of a D-5 permit.
The
D-5j permit shall be issued only within a community entertainment
district that is designated under section 4301.80 of the Revised
Code. The permit shall not be issued to a community entertainment
district that is designated under divisions (B) and (C) of section
4301.80 of the Revised Code if the district does not meet one of the
following qualifications:
(1)
It is located in a municipal corporation with a population of at
least one hundred thousand.
(2)
It is located in a municipal corporation with a population of at
least twenty thousand, and either of the following applies:
(a)
It contains an amusement park the rides of which have been issued a
permit by the department of agriculture under Chapter 1711. of the
Revised Code.
(b)
Not less than fifty million dollars will be invested in development
and construction in the community entertainment district's area
located in the municipal corporation.
(3)
It is located in a township with a population of at least forty
thousand.
(4)
It is located in a township with a population of at least twenty
thousand, and not less than seventy million dollars will be invested
in development and construction in the community entertainment
district's area located in the township.
(5)
It is located in a municipal corporation with a population between
seven thousand and twenty thousand, and both of the following apply:
(a)
The municipal corporation was incorporated as a village prior to
calendar year 1880 and currently has a historic downtown business
district.
(b)
The municipal corporation is located in the same county as another
municipal corporation with at least one community entertainment
district.
(6)
It is located in a municipal corporation with a population of at
least ten thousand, and not less than seventy million dollars will be
invested in development and construction in the community
entertainment district's area located in the municipal corporation.
(7)
It is located in a municipal corporation with a population of at
least three thousand, and not less than one hundred fifty million
dollars will be invested in development and construction in the
community entertainment district's area located in the municipal
corporation.
The
location of a D-5j permit may be transferred only within the
geographic boundaries of the community entertainment district in
which it was issued and shall not be transferred outside the
geographic boundaries of that district.
Not
more than one D-5j permit shall be issued within each community
entertainment district for each five acres of land located within the
district. Not more than fifteen D-5j permits may be issued within a
single community entertainment district. Except as otherwise provided
in division (J)(4) of this section, no quota restrictions shall be
placed upon the number of D-5j permits that may be issued.
The
fee for a D-5j permit is two thousand three hundred forty-four
dollars.
(K)(1)
Permit D-5k may be issued to any nonprofit organization that is
exempt from federal income taxation under the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501(c)(3), as
amended, that is the owner or operator of a botanical garden
recognized by the American association of botanical gardens and
arboreta, and that has not less than twenty-five hundred bona fide
members.
(2)
The holder of a D-5k permit may sell beer and any intoxicating liquor
at retail, only by the individual drink in glass and from the
container, on the premises where sold.
(3)
In addition to the privileges authorized in this division, the holder
of a D-5k permit may exercise the same privileges, and shall observe
the same hours of operation, as the holder of a D-5 permit.
(4)
A D-5k permit shall not be transferred to another location.
(5)
No quota restrictions shall be placed on the number of D-5k permits
that may be issued.
(6)
The fee for the D-5k permit is one thousand eight hundred
seventy-five dollars.
(L)(1)
Permit D-5l may be issued to the owner or the operator of a retail
food establishment or a food service operation licensed under Chapter
3717. of the Revised Code to sell beer and intoxicating liquor at
retail, only by the individual drink in glass and from the container,
for consumption on the premises where sold and to sell beer and
intoxicating liquor in the same manner and amounts not for
consumption on the premises where sold as may be sold by the holders
of D-1 and D-2 permits. The holder of a D-5l permit may exercise the
same privileges, and shall observe the same hours of operation, as
the holder of a D-5 permit.
(2)
The D-5l permit shall be issued only to a premises to which all of
the following apply:
(a)
The premises has gross annual receipts from the sale of food and
meals that constitute not less than seventy-five per cent of its
total gross annual receipts.
(b)
The premises is located within a revitalization district that is
designated under section 4301.81 of the Revised Code.
(c)
The premises is located in a municipal corporation or township in
which the number of D-5 permits issued equals or exceeds the number
of those permits that may be issued in that municipal corporation or
township under section 4303.29 of the Revised Code.
(d)
The premises meets any of the following qualifications:
(i)
It is located in a county with a population of one hundred
twenty-five thousand or less according to the population estimates
certified by the
department
of housing and
development
services
agency
for
calendar year 2006.
(ii)
It is located in the municipal corporation that has the largest
population in a county when the county has a population between two
hundred fifteen thousand and two hundred twenty-five thousand
according to the population estimates certified by the
department
of housing and
development
services
agency
for
calendar year 2006. Division (L)(2)(d)(ii) of this section applies
only to a municipal corporation that is wholly located in a county.
(iii)
It is located in the municipal corporation that has the largest
population in a county when the county has a population between one
hundred forty thousand and one hundred forty-one thousand according
to the population estimates certified by the
department
of housing and
development
services
agency
for
calendar year 2006. Division (L)(2)(d)(iii) of this section applies
only to a municipal corporation that is wholly located in a county.
(iv)
It is located in a township with a population density of less than
four hundred fifty people per square mile. For purposes of division
(L)(2)(d)(iv) of this section, the population of a township is
considered to be the population shown by the most recent regular
federal decennial census.
(v)
It is located in a municipal corporation that is wholly located
within the geographic boundaries of a township, provided that the
municipal corporation and the unincorporated portion of the township
have a combined population density of less than four hundred fifty
people per square mile. For purposes of division (L)(2)(d)(v) of this
section, the population of a municipal corporation and unincorporated
portion of a township is the population shown by the most recent
federal decennial census.
(vi)
It is located in a county with a population of not less than one
hundred seventy-two thousand and not more than one hundred
ninety-five thousand. For purposes of division (L)(2)(d)(vi) of this
section, the population of a county is the population shown by the
most recent decennial census.
(vii)
It is located in a municipal corporation with a population of less
than ten thousand and the municipal corporation is located in a
county with a population of more than one million. For purposes of
division (L)(2)(d)(vii) of this section, the population of a
municipal corporation and a county is the population shown by the
most recent decennial census.
(3)
The location of a D-5l permit may be transferred only within the
geographic boundaries of the revitalization district in which it was
issued and shall not be transferred outside the geographic boundaries
of that district.
(4)
Not more than one D-5l permit shall be issued within each
revitalization district for each five acres of land located within
the district. Not more than fifteen D-5l permits may be issued within
a single revitalization district. Except as otherwise provided in
division (L)(4) of this section, no quota restrictions shall be
placed upon the number of D-5l permits that may be issued.
(5)
No D-5l permit shall be issued to an adult entertainment
establishment as defined in section 2907.39 of the Revised Code.
(6)
The fee for a D-5l permit is two thousand three hundred forty-four
dollars.
(M)
Permit D-5m may be issued to either the owner or the operator of a
retail food establishment or food service operation licensed under
Chapter 3717. of the Revised Code that operates as a restaurant for
purposes of this chapter and that is located in, or affiliated with,
a center for the preservation of wild animals as defined in section
4301.404 of the Revised Code, to sell beer and any intoxicating
liquor at retail, only by the glass and from the container, for
consumption on the premises where sold, and to sell the same products
in the same manner and amounts not for consumption on the premises as
may be sold by the holders of D-1 and D-2 permits. In addition to the
privileges authorized by this division, the holder of a D-5m permit
may exercise the same privileges, and shall observe the same hours of
operation, as the holder of a D-5 permit.
A
D-5m permit shall not be transferred to another location. No quota
restrictions shall be placed on the number of D-5m permits that may
be issued. The fee for a permit D-5m is two thousand three hundred
forty-four dollars.
(N)
Permit D-5n shall be issued to either a casino operator or a casino
management company licensed under Chapter 3772. of the Revised Code
that operates a casino facility under that chapter, to sell beer and
any intoxicating liquor at retail, only by the individual drink in
glass and from the container, for consumption on the premises where
sold, and to sell the same products in the same manner and amounts
not for consumption on the premises as may be sold by the holders of
D-1 and D-2 permits. In addition to the privileges authorized by this
division, the holder of a D-5n permit may exercise the same
privileges, and shall observe the same hours for beer and
intoxicating liquor sales, as the holder of a D-5 permit. A D-5n
permit shall not be transferred to another location. Only one D-5n
permit may be issued per casino facility and not more than four D-5n
permits shall be issued in this state. The fee for a permit D-5n
shall be twenty thousand dollars. The holder of a D-5n permit may
conduct casino gaming on the permit premises notwithstanding any
provision of the Revised Code or Administrative Code.
(O)
Permit D-5o may be issued to the owner or operator of a retail food
establishment or a food service operation licensed under Chapter
3717. of the Revised Code that operates as a restaurant for purposes
of this chapter and that is located within a casino facility for
which a D-5n permit has been issued. The holder of a D-5o permit may
sell beer and any intoxicating liquor at retail, only by the
individual drink in glass and from the container, for consumption on
the premises where sold, and may sell the same products in the same
manner and amounts not for consumption on the premises where sold as
may be sold by the holders of D-1 and D-2 permits. In addition to the
privileges authorized by this division, the holder of a D-5o permit
may exercise the same privileges, and shall observe the same hours
for beer and intoxicating liquor sales, as the holder of a D-5
permit. A D-5o permit shall not be transferred to another location.
No quota restrictions shall be placed on the number of such permits
that may be issued. The fee for this permit is two thousand three
hundred forty-four dollars.
Sec.
4303.262.
The
department of
housing
and
development
shall designate resort areas, certify the geographical limits of such
areas, and certify the tourist population of and the custom and
habits of the tourists in such areas. The liquor control commission
shall give notice as herein provided of public hearings to be held
for the purpose of determining whether class D-7 permits shall be
issued within such areas.
When
the resort area certified by the department is located in whole or in
part within the corporate limits of a municipal corporation, the
liquor control commission shall notify the clerk of the legislative
authority of such municipal corporation, by certified mail, of the
date of the public hearing to determine whether such area shall be
designated a resort area for purposes of issuing D-7 permits.
When
the area certified by the department is located in whole or in part
outside the corporate limits of a municipal corporation, the liquor
control commission shall notify, by certified mail, the clerk of the
board of county commissioners of the county in which such resort area
is located. Such notice shall state the date of the public hearing to
determine whether such area shall be designated a resort area for
purposes of issuing D-7 permits.
In
addition to the notice to the clerk of the legislative authority or
the clerk of the county commissioners, or both, the liquor control
commission shall cause public notice of the date of hearing for the
purpose of designating such area as a resort area for the purpose of
issuing D-7 permits to be published in a newspaper of general
circulation within the area to be so designated. The hearing shall be
held in a place designated by the liquor control commission.
At
the public hearing the department shall testify concerning its
findings and conclusions as to the designation of such area as a
resort area. The legislative authority and the board of county
commissioners shall be given the right to offer testimony either in
support of or opposition to the designation of such area as a resort
area. In addition, the liquor control commission shall give members
of the general public the opportunity to give testimony either in
support of or in opposition to such designation. Any member of the
general public desiring to give testimony at such hearing shall give
notice of such fact to the liquor control commission within five days
of such hearing. The liquor control commission may limit the number
of private citizens given the opportunity to testify at such public
hearing and limit the length of their presentation. Any such
limitation shall include an equal number of speakers in opposition to
and in favor of such designation.
Within
thirty days of such public hearing the liquor control commission
shall approve or deny by order the designation as a resort area and
may before approval modify the geographical limits certified to it.
In its order the liquor control commission shall consider the
testimony presented to it at such hearing and shall take into
consideration the transient population during the resort season, the
custom and habits of visitors and tourists to the area, and the
promotion of the resort and tourist industry within the area. The
commission shall revoke or modify the designation as a "resort
area" when the area no longer qualifies. No revocation or
modification of the designation shall be made unless the notice and
hearing procedures provided in this section for the original
designation of the area are followed.
Sec.
4503.591.
(A)
If a professional sports team located in this state desires to have
its logo appear on license plates issued by this state, it shall
enter into a contract with either a sports commission to permit such
display, as permitted by division (E) of this section, or with a
community charity, as permitted by division (G) of this section.
(B)
The owner or lessee of any passenger car, noncommercial motor
vehicle, recreational vehicle, or other vehicle of a class approved
by the registrar of motor vehicles may apply to the registrar for the
registration of the vehicle and issuance of license plates bearing
the logo of a professional sports team that has entered into a
contract described in division (A) of this section. The application
shall designate the sports team whose logo the owner or lessee
desires to appear on the license plates. Failure to designate a
participating professional sports team shall result in rejection by
the registrar of the registration application. An application made
under this section may be combined with a request for a special
reserved license plate under section 4503.40 or 4503.42 of the
Revised Code. Upon receipt of the completed application and
compliance by the applicant with divisions (C) and (D) of this
section, the registrar shall issue to the applicant the appropriate
vehicle registration and a set of license plates bearing the logo of
the professional sports team the owner designated in the application
and a validation sticker, or a validation sticker alone when required
by section 4503.191 of the Revised Code.
In
addition to the letters and numbers ordinarily inscribed thereon,
professional sports team license plates shall bear the logo of a
participating professional sports team, and shall display county
identification stickers that identify the county of registration as
required under section 4503.19 of the Revised Code.
(C)
The professional sports team license plates and validation sticker,
or validation sticker alone, as the case may be, shall be issued upon
payment of the regular license tax as prescribed under section
4503.04 of the Revised Code, any applicable motor vehicle license tax
levied under Chapter 4504. of the Revised Code, an additional fee of
ten dollars, and compliance with all other applicable laws relating
to the registration of motor vehicles. If the application for a
professional sports team license plate is combined with a request for
a special reserved license plate under section 4503.40 or 4503.42 of
the Revised Code, the license plates and validation sticker, or
validation sticker alone, shall be issued upon payment of the taxes
and fees described in this division plus the additional fee
prescribed under section 4503.40 or 4503.42 of the Revised Code and
compliance with all other applicable laws relating to the
registration of motor vehicles.
(D)
For each application for registration and registration renewal notice
the registrar receives under this section, the registrar shall
collect a contribution of twenty-five dollars. The registrar shall
transmit this contribution to the treasurer of state for deposit into
the license plate contribution fund created by section 4501.21 of the
Revised Code.
The
registrar shall transmit the additional fee of ten dollars, which is
to compensate the bureau of motor vehicles for the additional
services required in the issuing of professional sports team license
plates, to the treasurer of state for deposit into the state treasury
to the credit of the public safety - highway purposes fund created by
section 4501.06 of the Revised Code.
(E)
If a professional sports team located in this state desires to have
its logo appear on license plates issued by this state and it desires
to do so pursuant to this division, it shall inform the largest
convention and visitors' bureau of the county in which the
professional sports team is located of that desire. That convention
and visitors' bureau shall create a sports commission to operate in
that county to receive the contributions that are paid by applicants
who choose to be issued license plates bearing the logo of that
professional sports team for display on their motor vehicles. The
sports commission shall negotiate with the professional sports team
to permit the display of the team's logo on license plates issued by
this state, enter into the contract with the team to permit such
display, and pay to the team any licensing or rights fee that must be
paid in connection with the issuance of the license plates. Upon
execution of the contract, the sports commission shall provide a copy
of it to the registrar, along with any other documentation the
registrar may require. Upon receipt of the contract and any required
additional documentation, and when the numerical requirement
contained in section 4503.78 of the Revised Code has been met
relative to that particular professional sports team, the registrar
shall take the measures necessary to issue license plates bearing the
logo of that team.
(F)
A sports commission shall expend the money it receives pursuant to
section 4501.21 of the Revised Code to attract amateur regional,
national, and international sporting events to the municipal
corporation, county, or township in which it is located, and it may
sponsor such events. Prior to attracting or sponsoring such events,
the sports commission shall perform an economic analysis to determine
whether the proposed event will have a positive economic effect on
the greater area in which the event will be held. A sports commission
shall not expend any money it receives under that section to attract
or sponsor an amateur regional, national, or international sporting
event if its economic analysis does not result in a finding that the
proposed event will have a positive economic effect on the greater
area in which the event will be held.
A
sports commission that receives money pursuant to that section, in
addition to any other duties imposed on it by law and notwithstanding
the scope of those duties, also shall encourage the economic
development of this state through the promotion of tourism within all
areas of this state. A sports commission that receives ten thousand
dollars or more during any calendar year shall submit a written
report to the director of
housing
and
development,
on or before the first day of October of the next succeeding year,
detailing its efforts and expenditures in the promotion of tourism
during the calendar year in which it received the ten thousand
dollars or more.
As
used in this division, "promotion of tourism" means the
encouragement through advertising, educational and informational
means, and public relations, both within the state and outside of it,
of travel by persons away from their homes for pleasure, personal
reasons, or other purposes, except to work, to this state or to the
region in which the sports commission is located.
(G)
If a professional sports team located in this state desires to have
its logo appear on license plates issued by this state and it does
not desire to do so pursuant to division (E) of this section, it
shall do so pursuant to this division. The professional sports team
shall notify a community charity of that desire. That community
charity may negotiate with the professional sports team to permit the
display of the team's logo on license plates issued by this state,
enter into a contract with the team to permit such display, and pay
to the team any licensing or rights fee that must be paid in
connection with the issuance of the license plates. Upon execution of
a contract, the community charity shall provide a copy of it to the
registrar along with any other documentation the registrar may
require. Upon receipt of the contract and any required additional
documentation, and when the numerical requirement contained in
section 4503.78 of the Revised Code has been met relative to that
particular professional sports team, the registrar shall take the
measures necessary to issue license plates bearing the logo of that
team.
(H)(1)
A community charity shall expend the money it receives pursuant to
section 4501.21 of the Revised Code solely to provide financial
support to a sports commission for the purposes described in division
(F) of this section and to nonprofit organizations located in this
state that seek to improve the lives of those who are less fortunate
and who reside in the region and state in which is located the sports
team with which the community charity entered into a contract
pursuant to division (G) of this section. Such organizations shall
achieve this purpose through activities such as youth sports
programs; educational, health, social, and community service
programs; or services such as emergency assistance or employment,
education, housing, and nutrition services.
The
community charity shall not expend any money it receives pursuant to
section 4501.21 of the Revised Code if the expenditure will be
received by a nonprofit organization that will use the money in a
manner or for a purpose that is not described in this division.
(2)
The community charity shall provide a written quarterly report to the
director of
housing
and
development
and the director of job and family services detailing the
expenditures of the money it receives pursuant to section 4501.21 of
the Revised Code. The report shall include the amount of such money
received and an accounting of all expenditures of such money.
(I)
For purposes of this section:
(1)
The "largest" convention and visitors' bureau of a county
is the bureau that receives the largest amount of money generated in
that county from excise taxes levied on lodging transactions under
sections 351.021, 5739.08, and 5739.09 of the Revised Code.
(2)
"Sports commission" means a commission consisting of at
least fifteen members that is a nonprofit corporation organized under
the laws of this state that is entitled to tax exempt status under
section 501(c)(3) of the "Internal Revenue Code of 1986,"
100 Stat. 2085, 26 U.S.C.A. 501, as amended, and whose function is to
attract, promote, or sponsor sports and athletic events within a
municipal corporation, county, or township.
A
sports commission may provide all services related to attracting,
promoting, or sponsoring such events, including, but not limited to,
the booking of athletes and teams, scheduling, and hiring or
contracting for staff, ushers, managers, and other persons whose
functions are directly related to the sports and athletic events the
commission attracts, promotes, or sponsors.
(3)
"Community charity" means a nonprofit corporation organized
under the laws of this state that is entitled to tax exempt status
under section 501(c)(3) of the "Internal Revenue Code of 1986,"
100 Stat. 2085, 26 U.S.C. 501, as amended, and that enters into a
contract with a professional sports team pursuant to division (G) of
this section.
(4)
"Nonprofit organization" means a nonprofit corporation
organized under the laws of this state that is entitled to tax exempt
status under section 501(c)(3) of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C. 501, as amended, and that
receives money from a community charity pursuant to division (H)(1)
of this section.
Sec.
4582.58.
(A)
All final actions of the port authority shall be journalized and the
journal and the records of the port authority shall be open to public
inspection at all reasonable times. Not later than the first day of
April every year, every port authority shall submit a report to the
director of
housing
and
development
detailing the projects and activities of the port authority during
the previous calendar year. The report shall include, but not be
limited to, all aspects of those projects and activities, including
the progress and status of the projects and their costs, and any
other information the director determines should be included in the
report.
(B)
Financial and proprietary information, including trade secrets,
submitted by or on behalf of an employer to a port authority or to a
nonprofit corporation engaged by contract to provide economic
development services for a port authority, in connection with the
relocation, location, expansion, improvement, or preservation of the
business of that employer is not a public record subject to section
149.43 of the Revised Code. Any other information submitted by such
an employer under those circumstances is not a public record subject
to section 149.43 of the Revised Code until that employer commits in
writing to proceed with the relocation, location, expansion,
improvement, or preservation.
(C)
Notwithstanding section 121.22 of the Revised Code, the board of
directors of a port authority and the board of trustees of a
nonprofit corporation described in division (B) of this section, and
any committee or subcommittee of either, when considering information
that is not a public record under this section, may close any meeting
during the consideration of that information pursuant to a vote of
the majority of the members present on a motion stating that such
information is to be considered. No other matters shall be considered
during the closed session.
Sec.
4901.021.
(A)
There is hereby created a public utilities commission nominating
council consisting of the following:
(1)
The chairperson of the consumers' counsel governing board;
(2)
The president of the accountancy board;
(3)
The chairperson of the state board of registration for professional
engineers and surveyors;
(4)
The president of the Ohio state bar association;
(5)
The president of the Ohio municipal league;
(6)
The director of
housing
and
development
or the director's department-employed designee;
(7)
A member of the public appointed by the speaker of the house of
representatives, to serve at the pleasure of the speaker;
(8)
A member of the public appointed by the president of the senate, to
serve at the pleasure of the president;
(9)
A representative of the regulated public utilities of the state
appointed by the governor, to serve at the pleasure of the governor;
(10)
A representative of the business community appointed by the governor,
to serve at the pleasure of the governor;
(11)
A representative of organized labor appointed by the governor, to
serve at the pleasure of the governor;
(12)
A senior citizen sixty-five years of age or older appointed by the
director of aging, to serve at the pleasure of the director.
(B)
At its first meeting each calendar year, the council shall select
from among its members a chairperson and secretary. The council may
adopt bylaws governing its proceedings.
(C)
The council shall keep a record of its proceedings. Special meetings
may be called by the chairperson, and shall be called by the
chairperson upon receipt of a written request for a meeting signed by
two or more members of the council. Written notice of the time and
place of each meeting shall be sent to each member of the council.
With the approval of the association's or league's governing body,
the president of the Ohio state bar association or the president of
the Ohio municipal league, respectively, may designate an alternate
to represent the president at meetings of the council. With the
approval of the board, the president of the accountancy board or the
chairperson of the state board of registration for professional
engineers and surveyors may designate such an alternate. Six members,
or their alternates, constitute a quorum.
(D)
The council shall:
(1)
Review and evaluate possible appointees for the office of
commissioner of the public utilities commission;
(2)
Consistent with division (D) of section 4901.02 of the Revised Code,
not more than eighty-five nor less than sixty days prior to the
expiration of the term of a public utilities commissioner or not more
than thirty days after the death of, resignation of, or termination
of service by, a public utilities commissioner, provide the governor
with a list of four individuals who are, in the judgment of the
council, the most fully qualified to accede to the office of
commissioner. The council shall not include the name of an individual
upon the list, if the appointment of that individual by the governor
would result in more than three members of the commission belonging
to or being affiliated with the same political party. The council
shall include on the list only the names of attorneys admitted to the
practice of law in any state or the District of Columbia if an
attorney must be appointed to fulfill the requirement of division (D)
of section 4901.02 of the Revised Code. To the extent possible, in
its performance of this duty, the council shall continually attempt
to ensure that the primary focus of the background of two
commissioners is in energy and that the primary focus of the
background of two commissioners is in transportation or
communications technology.
(E)
In reviewing and evaluating possible appointees for the office of
public utilities commissioner, the council may accept comments from,
cooperate with, and request information from any person. The council
may make recommendations to the general assembly concerning changes
in legislation to assist the council in the performance of its
duties.
(F)
Within thirty days of receipt of the council's recommendations, the
governor shall fill a vacancy occurring in the office of commissioner
by appointment of one of the persons recommended by the council.
Nothing in this section shall prevent the governor in the governor's
discretion from rejecting all of the nominees of the council and
reconvening the council in order to select four additional nominees.
However, when the governor has reconvened the council and the council
has provided the governor with a second list of four names, the
governor shall make the appointment from one of the names on the
first list or the second list. Each appointment by the governor shall
be subject to the advice and consent of the senate.
(G)
Members of the council shall be compensated on a per diem basis
pursuant to the procedures set forth in section 124.14 of the Revised
Code plus reasonable travel expenses. All the expenses of the
nominating council shall be paid from moneys appropriated to the
public utilities commission for that purpose.
Sec.
4906.02.
(A)(1)
There is hereby created within the public utilities commission the
power siting board, composed of the chairperson of the public
utilities commission, the director of environmental protection, the
director of health, the director of
housing
and
development,
the director of natural resources, the director of agriculture, and a
representative of the public who shall be an engineer and shall be
appointed by the governor, from a list of three nominees submitted to
the governor by the office of the consumers' counsel, with the advice
and consent of the senate and shall serve for a term of four years.
The chairperson of the public utilities commission shall be
chairperson of the board and its chief executive officer. The
chairperson shall designate one of the voting members of the board to
act as vice-chairperson who shall possess during the absence or
disability of the chairperson all of the powers of the chairperson.
All hearings, studies, and consideration of applications for
certificates shall be conducted by the board or representatives of
its members.
In
addition, the board shall include four legislative members who may
participate fully in all the board's deliberations and activities
except that they shall serve as nonvoting members. The speaker of the
house of representatives shall appoint one legislative member, and
the president of the senate and minority leader of each house shall
each appoint one legislative member. Each such legislative leader
shall designate an alternate to attend meetings of the board when the
regular legislative member appointed by the legislative leader is
unable to attend. Each legislative member and alternate shall serve
for the duration of the elected term that the legislative member is
serving at the time of appointment. A quorum of the board is a
majority of its voting members.
The
representative of the public and, notwithstanding section 101.26 of
the Revised Code, legislative members of the board or their
designated alternates, when engaged in their duties as members of the
board, shall be paid at the per diem rate of step 1, pay range 32,
under schedule B of section 124.15 of the Revised Code and shall be
reimbursed for the actual and necessary expenses they incur in the
discharge of their official duties.
(2)
In all cases involving an application for a certificate or a material
amendment to an existing certificate for a utility facility, as
defined in section 303.57 of the Revised Code, the board shall
include two voting ad hoc members, as described in section 4906.021
of the Revised Code.
(B)
The chairperson shall keep a complete record of all proceedings of
the board, issue all necessary process, writs, warrants, and notices,
keep all books, maps, documents, and papers ordered filed by the
board, conduct investigations pursuant to section 4906.07 of the
Revised Code, and perform such other duties as the board may
prescribe.
(C)
The chairperson of the public utilities commission may assign or
transfer duties among the commission's staff. However, the board's
authority to grant certificates under section 4906.10 of the Revised
Code shall not be exercised by any officer, employee, or body other
than the board itself.
(D)(1)
The chairperson may call to the chairperson's assistance,
temporarily, any employee of the environmental protection agency, the
department of natural resources, the department of agriculture, the
department of health, or the department of
housing
and
development,
for the purpose of making studies, conducting hearings, investigating
applications, or preparing any report required or authorized under
this chapter. Such employees shall not receive any additional
compensation over that which they receive from the agency by which
they are employed, but they shall be reimbursed for their actual and
necessary expenses incurred while working under the direction of the
chairperson. All contracts for special services are subject to the
approval of the chairperson.
(2)
Subject to controlling board approval, the board may contract for the
services of any expert or analyst, other than an employee described
in division (D)(1) of this section, for the purposes of carrying out
the board's powers and duties as described in Chapter 4906. of the
Revised Code. Any such expert or analyst shall be compensated from
the application fee, or if necessary, supplemental application fees
assessed in accordance with division (F) of section 4906.06 of the
Revised Code.
(E)
The board's offices shall be located in those of the public utilities
commission.
Sec.
4928.06.
(A)
Beginning on the starting date of competitive retail electric
service, the public utilities commission shall ensure that the policy
specified in section 4928.02 of the Revised Code is effectuated. To
the extent necessary, the commission shall adopt rules to carry out
this chapter. Initial rules necessary for the commencement of the
competitive retail electric service under this chapter shall be
adopted within one hundred eighty days after the effective date of
this section. Except as otherwise provided in this chapter, the
proceedings and orders of the commission under the chapter shall be
subject to and governed by Chapter 4903. of the Revised Code.
(B)
If the commission determines, on or after the starting date of
competitive retail electric service, that there is a decline or loss
of effective competition with respect to a competitive retail
electric service of an electric utility, which service was declared
competitive by commission order issued pursuant to division (A) of
section 4928.04 of the Revised Code, the commission shall ensure that
that service is provided at compensatory, fair, and nondiscriminatory
prices and terms and conditions.
(C)
In addition to its authority under section 4928.04 of the Revised
Code and divisions (A) and (B) of this section, the commission, on an
ongoing basis, shall monitor and evaluate the provision of retail
electric service in this state for the purpose of discerning any
noncompetitive retail electric service that should be available on a
competitive basis on or after the starting date of competitive retail
electric service pursuant to a declaration in the Revised Code, and
for the purpose of discerning any competitive retail electric service
that is no longer subject to effective competition on or after that
date. Upon such evaluation, the commission periodically shall report
its findings and any recommendations for legislation to the standing
committees of both houses of the general assembly that have primary
jurisdiction regarding public utility legislation. Until 2008, the
commission and the consumer's counsel also shall provide biennial
reports to those standing committees, regarding the effectiveness of
competition in the supply of competitive retail electric services in
this state. In addition, until the end of all market development
periods as determined by the commission under section 4928.40 of the
Revised Code, those standing committees shall meet at least
biennially to consider the effect on this state of electric service
restructuring and to receive reports from the commission, consumers'
counsel, and director of
housing
and
development.
(D)
In determining, for purposes of division (B) or (C) of this section,
whether there is effective competition in the provision of a retail
electric service or reasonably available alternatives for that
service, the commission shall consider factors including, but not
limited to, all of the following:
(1)
The number and size of alternative providers of that service;
(2)
The extent to which the service is available from alternative
suppliers in the relevant market;
(3)
The ability of alternative suppliers to make functionally equivalent
or substitute services readily available at competitive prices,
terms, and conditions;
(4)
Other indicators of market power, which may include market share,
growth in market share, ease of entry, and the affiliation of
suppliers of services.
The
burden of proof shall be on any entity requesting, under division (B)
or (C) of this section, a determination by the commission of the
existence of or a lack of effective competition or reasonably
available alternatives.
(E)(1)
Beginning on the starting date of competitive retail electric
service, the commission has authority under Chapters 4901. to 4909.
of the Revised Code, and shall exercise that authority, to resolve
abuses of market power by any electric utility that interfere with
effective competition in the provision of retail electric service.
(2)
In addition to the commission's authority under division (E)(1) of
this section, the commission, beginning the first year after the
market development period of a particular electric utility and after
reasonable notice and opportunity for hearing, may take such measures
within a transmission constrained area in the utility's certified
territory as are necessary to ensure that retail electric generation
service is provided at reasonable rates within that area. The
commission may exercise this authority only upon findings that an
electric utility is or has engaged in the abuse of market power and
that that abuse is not adequately mitigated by rules and practices of
any independent transmission entity controlling the transmission
facilities. Any such measure shall be taken only to the extent
necessary to protect customers in the area from the particular abuse
of market power and to the extent the commission's authority is not
preempted by federal law. The measure shall remain in effect until
the commission, after reasonable notice and opportunity for hearing,
determines that the particular abuse of market power has been
mitigated.
(F)
An electric utility, electric services company, electric cooperative,
or governmental aggregator subject to certification under section
4928.08 of the Revised Code shall provide the commission with such
information, regarding a competitive retail electric service for
which it is subject to certification, as the commission considers
necessary to carry out this chapter. An electric utility shall
provide the commission with such information as the commission
considers necessary to carry out divisions (B) to (E) of this
section. The commission shall take such measures as it considers
necessary to protect the confidentiality of any such information.
The
commission shall require each electric utility to file with the
commission on and after the starting date of competitive retail
electric service an annual report of its intrastate gross receipts
and sales of kilowatt hours of electricity, and shall require each
electric services company, electric cooperative, and governmental
aggregator subject to certification to file an annual report on and
after that starting date of such receipts and sales from the
provision of those retail electric services for which it is subject
to certification. For the purpose of the reports, sales of kilowatt
hours of electricity are deemed to occur at the meter of the retail
customer.
Sec.
4928.43.
(A)
Each state agency that provides employment assistance and job
training programs, including the bureau of employment services and
the department of
housing
and
development,
shall provide concentrated attention through those programs to
assisting employees whose employment is affected by electric industry
restructuring under this chapter.
(B)
To the extent not prohibited by federal law or any law of this state
and except as otherwise provided in a labor contract or other
agreement, no unencumbered money in a pension fund for employees of
electric utilities shall be used for any purpose other than to pay
allowable pensions or early retirement buyouts for the employees.
Sec.
4928.51.
(A)
There is hereby established in the state treasury a universal service
fund, into which shall be deposited all universal service revenues
remitted to the director of
housing
and
development
under this section, for the exclusive purposes of providing funding
for the low-income customer assistance programs and for the consumer
education program authorized under section 4928.56 of the Revised
Code, and paying the administrative costs of the low-income customer
assistance programs and the consumer education program. Interest on
the fund shall be credited to the fund. Disbursements from the fund
shall be made to any supplier that provides a competitive retail
electric service or a noncompetitive retail electric service to a
customer who is approved to receive assistance under a specified
low-income customer assistance program and to any authorized provider
of weatherization or energy efficiency service to a customer approved
to receive such assistance under a specified low-income customer
assistance program.
(B)
Universal service revenues shall include all of the following:
(1)
Revenues remitted to the director after collection by an electric
distribution utility beginning July 1, 2000, attributable to the
collection from customers of the universal service rider prescribed
under section 4928.52 of the Revised Code;
(2)
Revenues remitted to the director that have been collected by an
electric distribution utility beginning July 1, 2000, as customer
payments under the percentage of income payment plan program,
including revenues remitted under division (C) of this section;
(3)
Adequate revenues remitted to the director after collection by a
municipal electric utility or electric cooperative in this state not
earlier than July 1, 2000, upon the utility's or cooperative's
decision to participate in the low-income customer assistance
programs.
(C)(1)
Beginning July 1, 2000, an electric distribution utility shall
transfer to the director the right to collect all arrearage payments
of a customer for percentage of income payment plan program debt owed
to the utility on the day before that date or retain the right to
collect that debt but remit to the director all program revenues
received by the utility for that customer.
(2)
A current or past percentage of income payment plan program customer
is relieved of any payment obligation under the percentage of income
payment program for any unpaid arrears accrued by the customer under
the program as of the effective date of this section if the customer,
as determined by the director, meets both of the following criteria:
(a)
The customer as of that date has complied with customer payment
responsibilities under the program.
(b)
The customer is permanently and totally disabled as defined in
section 5117.01 of the Revised Code or is sixty-five years of age or
older as defined in that section.
(D)
The public utilities commission shall complete an audit of each
electric utility by July 1, 2000, for the purpose of establishing a
baseline for the percentage of income payment plan program component
of the low-income assistance programs.
Sec.
4928.52.
(A)
Beginning July 1, 2000, the universal service rider shall replace the
percentage of income payment plan rider in existence on the effective
date of this section and any amount in the rates of an electric
utility for the funding of low-income customer energy efficiency
programs. The universal service rider shall be a rider on retail
electric distribution service rates as such rates are determined by
the public utilities commission pursuant to this chapter. The
universal service rider for the first five years after the starting
date of competitive retail electric service shall be the sum of all
of the following:
(1)
The level of the percentage of income payment plan program rider in
existence on the effective date of this section;
(2)
An amount equal to the level of funding for low-income customer
energy efficiency programs provided through electric utility rates in
effect on the effective date of this section;
(3)
Any additional amount necessary and sufficient to fund through the
universal service rider the administrative costs of the low-income
customer assistance programs and the consumer education program
created in section 4928.56 of the Revised Code.
(B)
If, during or after the five-year period specified in division (A) of
this section, the director of
housing
and
development,
after consultation with the public benefits advisory board created
under section 4928.58 of the Revised Code, determines that revenues
in the universal service fund and revenues from federal or other
sources of funding for those programs, including general revenue fund
appropriations for the Ohio energy credit program, will be
insufficient to cover the administrative costs of the low-income
customer assistance programs and the consumer education program and
provide adequate funding for those programs, the director shall file
a petition with the commission for an increase in the universal
service rider. The commission, after reasonable notice and
opportunity for hearing, may adjust the universal service rider by
the minimum amount necessary to provide the additional revenues. The
commission shall not decrease the universal service rider without the
approval of the director, after consultation by the director with the
advisory board.
(C)
The universal service rider established under division (A) or (B) of
this section shall be set in such a manner so as not to shift among
the customer classes of electric distribution utilities the costs of
funding low-income customer assistance programs.
Sec.
4928.53.
(A)
Beginning July 1, 2000, the director of
housing
and
development
is hereby authorized to administer the low-income customer assistance
programs. For that purpose, the public utilities commission shall
cooperate with and provide such assistance as the director requires
for administration of the low-income customer assistance programs.
The director shall consolidate the administration of and redesign and
coordinate the operations of those programs within the department to
provide, to the maximum extent possible, for efficient program
administration and a one-stop application and eligibility
determination process at the local level for consumers.
(B)(1)
Not later than March 1, 2000, the director, in accordance with
Chapter 119. of the Revised Code, shall adopt rules to carry out
sections 4928.51 to 4928.58 of the Revised Code and ensure the
effective and efficient administration and operation of the
low-income customer assistance programs. The rules shall take effect
on July 1, 2000.
(2)
The director's authority to adopt rules under this division for the
Ohio energy credit program shall be subject to such rule-making
authority as is conferred on the director by sections 5117.01 to
5117.12 of the Revised Code, as amended by Sub. S.B. No. 3 of the
123rd general assembly, except that rules initially adopted by the
director for the Ohio energy credit program shall incorporate the
substance of those sections as they exist on the effective date of
this section.
(3)
The director's authority to adopt rules under this division for the
percentage of income payment plan program shall include authority to
adopt rules prescribing criteria for customer eligibility and
policies regarding payment and crediting arrangements and
responsibilities, procedures for verifying customer eligibility,
procedures for disbursing public funds to suppliers and otherwise
administering funds under the director's jurisdiction, and
requirements as to timely remittances of revenues described in
division (B) of section 4928.51 of the Revised Code. The rules shall
prohibit the imposition of a waiting period before enrolling an
eligible customer in the percentage of income payment plan. The
director's authority in division (B)(3) of this section excludes
authority to prescribe service disconnection and customer billing
policies and procedures and to address complaints against suppliers
under the percentage of payment plan program, which excluded
authority shall be exercised by the public utilities commission, in
coordination with the director. Rules adopted by the director under
this division for the percentage of income payment plan program shall
specify a level of payment responsibility to be borne by an eligible
customer based on a percentage of the customer's income. Rules
initially adopted by the director for the percentage of income
payment plan program shall incorporate the eligibility criteria and
payment arrangement and responsibility policies set forth in rule
4901:1-18-04(B) of the Ohio Administrative Code in effect on the
effective date of this section.
Sec.
4928.54.
The
director of
housing
and
development
services
shall
aggregate percentage of income payment plan program customers for the
purpose of establishing a competitive procurement process for the
supply of competitive retail electric service for those customers.
The process shall be an auction. Only bidders certified under section
4928.08 of the Revised Code may participate in the auction.
Sec.
4928.543.
The
director of
housing
and
development
services
shall
adopt rules in accordance with Chapter 119. of the Revised Code to
implement sections 4928.54, 4928.541, and 4928.542 of the Revised
Code. The rules shall ensure a fair and unbiased auction process and
the performance of the winning bidder or bidders.
Sec.
4928.544.
(A)
For the purpose of facilitating compliance with sections 4928.54,
4928.541, and 4928.542 of the Revised Code, and upon written request
by the director of
housing
and
development
services
,
the public utilities commission shall design, manage, and supervise
the competitive procurement process required by section 4928.54 of
the Revised Code. To the extent reasonably possible, and to minimize
costs, the process may be designed based on any existing competitive
procurement process for the establishment of the default generation
supply price for electric distribution utilities.
This
division does not preclude a process design that is based on a
competitive procurement process that applies to the combined
certified territories of electric distribution utilities subject to
common ownership.
(B)
The director of
housing
and
development
services
shall
reimburse the commission for its costs incurred under division (A) of
this section. The reimbursements constitute administrative costs of
the low-income customer assistance programs for the purpose of
division (A) of section 4928.51 of the Revised Code.
Sec.
4928.55.
The
director of
housing
and
development
services
shall
establish an energy efficiency and weatherization program targeted,
to the extent practicable, to high-cost, high-volume use structures
occupied by customers eligible for the percentage of income payment
plan program, with the goal of reducing the energy bills of the
occupants. Acceptance of energy efficiency and weatherization
services provided by the program shall be a condition for the
eligibility of any such customer to participate in the percentage of
income payment plan program.
Sec.
4928.56.
The
director of
housing
and
development
may adopt rules in accordance with Chapter 119. of the Revised Code
establishing an education program for consumers eligible to
participate in the low-income customer assistance programs. The
education program shall provide information to consumers regarding
energy efficiency and energy conservation.
Sec.
4928.57.
On
and after the starting date of competitive retail electric service,
the director of
housing
and
development
shall provide a report every two years until 2008 to the standing
committees of the general assembly that deal with public utility
matters, regarding the effectiveness of the low-income customer
assistance programs and the consumer education program, and the
effectiveness of the advanced energy program created under sections
4928.61 to 4928.63 of the Revised Code.
Sec.
4928.58.
(A)
There is hereby created the public benefits advisory board, which has
the purpose of ensuring that energy services be provided to
low-income consumers in this state in an affordable manner consistent
with the policy specified in section 4928.02 of the Revised Code. The
advisory board shall consist of twenty-one members as follows: the
director of
housing
and
development,
the chairperson of the public utilities commission, the consumers'
counsel, and the director of the air quality development authority,
each serving ex officio and represented by a designee at the
official's discretion; two members of the house of representatives
appointed by the speaker of the house of representatives, neither of
the same political party, and two members of the senate appointed by
the president of the senate, neither of the same political party; and
thirteen members appointed by the governor with the advice and
consent of the senate, consisting of one representative of suppliers
of competitive retail electric service; one representative of the
residential class of electric utility customers; one representative
of the industrial class of electric utility customers; one
representative of the commercial class of electric utility customers;
one representative of agricultural or rural customers of an electric
utility; two customers receiving assistance under one or more of the
low-income customer assistance programs, to represent customers
eligible for any such assistance, including senior citizens; one
representative of the general public; one representative of local
intake agencies; one representative of a community-based organization
serving low-income customers; one representative of environmental
protection interests; one representative of lending institutions; and
one person considered an expert in energy efficiency or renewables
technology. Initial appointments shall be made not later than
November 1, 1999.
(B)
Initial terms of six of the appointed members shall end on June 30,
2003, and initial terms of the remaining seven appointed members
shall end on June 30, 2004. Thereafter, terms of appointed members
shall be for three years, with each term ending on the same day of
the same month as the term it succeeds. Each member shall hold office
from the date of the member's appointment until the end of the term
for which the member was appointed. Members may be reappointed.
Vacancies
shall be filled in the manner provided for original appointments. Any
member appointed to fill a vacancy occurring prior to the expiration
date of the term for which the member's predecessor was appointed
shall hold office as a member for the remainder of that term. A
member shall continue in office after the expiration date of the
member's term until the member's successor takes office or until a
period of sixty days has elapsed, whichever occurs first.
(C)
Board members shall be reimbursed for their actual and necessary
expenses incurred in the performance of board duties. The
reimbursements constitute, as applicable, administrative costs of the
low-income customer assistance programs for the purpose of division
(A) of section 4928.51 of the Revised Code or administrative costs of
the advanced energy program for the purpose of division (A) of
section 4528.61 of the Revised Code.
(D)
The advisory board shall select a chairperson from among its members.
Only board members appointed by the governor with the advice and
consent of the senate shall be voting members of the board; each
shall have one vote in all deliberations of the board. A majority of
the voting members constitute a quorum.
(E)
The duties of the advisory board shall be as follows:
(1)
Advise the director in the administration of the universal service
fund and the low-income customer assistance programs and advise the
director on the director's recommendation to the commission regarding
the appropriate level of the universal service rider;
(2)
Advise the director on the administration of the advanced energy
program and the advanced energy fund under sections 4928.61 to
4928.63 of the Revised Code.
(F)
The advisory board is not an agency for purposes of sections 101.82
to 101.87 of the Revised Code.
Sec.
4928.581.
(A)
The public benefits advisory board shall conduct an independent
investigation and analysis for the purpose of making the report
required under division (B) of this section.
(B)
With the approval of a majority of its voting members, the board
shall prepare a written report containing all of the following:
(1)
For each year since the establishment of the universal service fund
and for each electric distribution utility, the annual amount of
revenue collected from customers for the purpose of supporting the
universal service fund and the low-income customer assistance
programs.
(2)
For 2016, 2017, and 2018, and for each electric distribution utility,
a forecast of the annual amount of revenue that will be collected
from customers for the purpose of supporting the universal service
fund and the low-income customer assistance programs, assuming no
changes are made to the programs. The forecast shall identify all
assumptions, input variables, and values assigned to input variables.
The forecast may include alternative outcomes based on variations in
the assumptions, variables, and values, so as to show the sensitivity
of the forecast to alternative inputs.
(3)
A recommendation as to any changes that should be made to the design
and implementation of the current universal service fund and the
low-income customer assistance programs to ensure that energy
services are provided to low-income and other consumers in this state
in an affordable manner consistent with the policy specified in
section 4928.02 of the Revised Code.
(C)
The report required under division (B) of this section may include
dissenting views and alternative recommendations.
(D)
On or before December 15, 2015, the board shall submit the report
required under division (B) of this section to the governor, the
president of the senate, the speaker of the house of representatives,
each member of the standing committees of both houses of the general
assembly that have primary jurisdiction regarding public utility
legislation, the director of
housing
and
development
services
,
the chairperson of the public utilities commission, the Ohio
consumers' counsel, and each member of the public benefits advisory
board.
Sec.
4928.582.
(A)
To discharge the duties under section 4928.581 of the Revised Code,
the public benefits advisory board may obtain professional services
as the board determines appropriate. The professionals shall be
promptly reimbursed by the director of
housing
and
development
services
for
the actual and necessary expenses incurred in the performance of
their duties under section 4928.581 of the Revised Code. The
reimbursements constitute administrative costs of the low-income
customer assistance programs for the purpose of division (A) of
section 4928.51 of the Revised Code.
(B)
The chairperson of the board may execute, subject to the advice and
consent of the board, any professional-services retention agreements
that the board determines appropriate.
Sec.
4928.583.
The
director of
housing
and
development
services
,
the public utilities commission, and each electric distribution
utility shall promptly respond to requests by the public benefits
advisory board for information needed to prepare the report required
under section 4928.581 of the Revised Code.
Sec.
4928.61.
(A)
There is hereby established in the state treasury the advanced energy
fund, into which shall be deposited all advanced energy revenues
remitted to the director of
housing
and
development
under division (B) of this section, for the exclusive purposes of
funding the advanced energy program created under section 4928.62 of
the Revised Code and paying the program's administrative costs.
Interest on the fund shall be credited to the fund.
(B)
Advanced energy revenues shall include all of the following:
(1)
Revenues remitted to the director after collection by each electric
distribution utility in this state of a temporary rider on retail
electric distribution service rates as such rates are determined by
the public utilities commission pursuant to this chapter. The rider
shall be a uniform amount statewide, determined by the director of
housing
and
development,
after consultation with the public benefits advisory board created by
section 4928.58 of the Revised Code. The amount shall be determined
by dividing an aggregate revenue target for a given year as
determined by the director, after consultation with the advisory
board, by the number of customers of electric distribution utilities
in this state in the prior year. Such aggregate revenue target shall
not exceed more than fifteen million dollars in any year through 2005
and shall not exceed more than five million dollars in any year after
2005. The rider shall be imposed beginning on the effective date of
the amendment of this section by Sub. H.B. 251 of the 126th general
assembly, January 4, 2007, and shall terminate at the end of ten
years following the starting date of competitive retail electric
service or until the advanced energy fund, including interest,
reaches one hundred million dollars, whichever is first.
(2)
Revenues from payments, repayments, and collections under the
advanced energy program and from program income;
(3)
Revenues remitted to the director after collection by a municipal
electric utility or electric cooperative in this state upon the
utility's or cooperative's decision to participate in the advanced
energy fund;
(4)
Revenues from renewable energy compliance payments as provided under
division (C)(2) of section 4928.64 of the Revised Code;
(5)
Revenue from forfeitures under division (C) of section 4928.66 of the
Revised Code;
(6)
Funds transferred pursuant to division (B) of Section 512.10 of S.B.
315 of the 129th general assembly;
(7)
Interest earnings on the advanced energy fund.
(C)(1)
Each electric distribution utility in this state shall remit to the
director on a quarterly basis the revenues described in divisions
(B)(1) and (2) of this section. Such remittances shall occur within
thirty days after the end of each calendar quarter.
(2)
Each participating electric cooperative and participating municipal
electric utility shall remit to the director on a quarterly basis the
revenues described in division (B)(3) of this section. Such
remittances shall occur within thirty days after the end of each
calendar quarter. For the purpose of division (B)(3) of this section,
the participation of an electric cooperative or municipal electric
utility in the energy efficiency revolving loan program as it existed
immediately prior to the effective date of the amendment of this
section by Sub. H.B. 251 of the 126th general assembly, January 4,
2007, does not constitute a decision to participate in the advanced
energy fund under this section as so amended.
(3)
All remittances under divisions (C)(1) and (2) of this section shall
continue only until the end of ten years following the starting date
of competitive retail electric service or until the advanced energy
fund, including interest, reaches one hundred million dollars,
whichever is first.
(D)
Any moneys collected in rates for non-low-income customer energy
efficiency programs, as of October 5, 1999, and not contributed to
the energy efficiency revolving loan fund authorized under this
section prior to the effective date of its amendment by Sub. H.B. 251
of the 126th general assembly, January 4, 2007, shall be used to
continue to fund cost-effective, residential energy efficiency
programs, be contributed into the universal service fund as a
supplement to that required under section 4928.53 of the Revised
Code, or be returned to ratepayers in the form of a rate reduction at
the option of the affected electric distribution utility.
Sec.
4928.62.
(A)
There is hereby created the advanced energy program, which shall be
administered by the director of
housing
and
development.
Under the program, the director may authorize the use of moneys in
the advanced energy fund for financial, technical, and related
assistance for advanced energy projects in this state or for economic
development assistance, in furtherance of the purposes set forth in
section 4928.63 of the Revised Code.
(1)
To the extent feasible given approved applications for assistance,
the assistance shall be distributed among the certified territories
of electric distribution utilities and participating electric
cooperatives, and among the service areas of participating municipal
electric utilities, in amounts proportionate to the remittances of
each utility and cooperative under divisions (B)(1) and (3) of
section 4928.61 of the Revised Code.
(2)
The funds described in division (B)(6) of section 4928.61 of the
Revised Code shall not be subject to the territorial requirements of
division (A)(1) of this section.
(3)
The director shall not authorize financial assistance for an advanced
energy project under the program unless the director first determines
that the project will create new jobs or preserve existing jobs in
this state or use innovative technologies or materials.
(B)
In carrying out sections 4928.61 to 4928.63 of the Revised Code, the
director may do all of the following to further the public interest
in advanced energy projects and economic development:
(1)
Award grants, contracts, loans, loan participation agreements, linked
deposits, and energy production incentives;
(2)
Acquire in the name of the director any property of any kind or
character in accordance with this section, by purchase, purchase at
foreclosure, or exchange, on such terms and in such manner as the
director considers proper;
(3)
Make and enter into all contracts and agreements necessary or
incidental to the performance of the director's duties and the
exercise of the director's powers under sections 4928.61 to 4928.63
of the Revised Code;
(4)
Employ or enter into contracts with financial consultants, marketing
consultants, consulting engineers, architects, managers, construction
experts, attorneys, technical monitors, energy evaluators, or other
employees or agents as the director considers necessary, and fix
their compensation;
(5)
Adopt rules prescribing the application procedures for financial
assistance under the advanced energy program; the fees, charges,
interest rates, payment schedules, local match requirements, and
other terms and conditions of any grants, contracts, loans, loan
participation agreements, linked deposits, and energy production
incentives; criteria pertaining to the eligibility of participating
lending institutions; and any other matters necessary for the
implementation of the program;
(6)
Do all things necessary and appropriate for the operation of the
program.
(C)
The department of
housing
and
development
may hold ownership to any unclaimed energy efficiency and renewable
energy emission allowances provided for in Chapter 3745-14 of the
Administrative Code or otherwise, that result from advanced energy
projects that receive funding from the advanced energy fund, and it
may use the allowances to further the public interest in advanced
energy projects or for economic development.
(D)
Financial statements, financial data, and trade secrets submitted to
or received by the director from an applicant or recipient of
financial assistance under sections 4928.61 to 4928.63 of the Revised
Code, or any information taken from those statements, data, or trade
secrets for any purpose, are not public records for the purpose of
section 149.43 of the Revised Code.
(E)
Nothing in the amendments of sections 4928.61, 4928.62, and 4928.63
of the Revised Code by Sub. H.B. 251 of the 126th general assembly
shall affect any pending or effected assistance, pending or effected
purchases or exchanges of property made, or pending or effected
contracts or agreements entered into pursuant to division (A) or (B)
of this section as the section existed prior to the effective date of
those amendments, January 4, 2007, or shall affect the exemption
provided under division (C) of this section as the section existed
prior to that effective date.
(F)
Any assistance a school district receives for an advanced energy
project, including a geothermal heating, ventilating, and air
conditioning system, shall be in addition to any assistance provided
under Chapter 3318. of the Revised Code and shall not be included as
part of the district or state portion of the basic project cost under
that chapter.
Sec.
4928.63.
The
director of
housing
and
development
and the public benefits advisory board have the powers and duties
provided in sections 4928.61 and 4928.62 of the Revised Code, in
order to promote the welfare of the people of this state; stabilize
the economy; assist in the improvement and development within this
state of not-for-profit entity, industrial, commercial, distribution,
residential, and research buildings and activities required for the
people of this state; improve the economic welfare of the people of
this state by reducing energy costs and by reducing energy usage in a
cost-efficient manner using, as determined by the director, both the
most appropriate national, federal, or other standards for products
and the best practices for the use of technology, products, or
services in the context of a total facility or building; and assist
in the lowering of energy demand to reduce air, water, or thermal
pollution. It is hereby determined that the accomplishment of those
purposes is essential so that the people of this state may maintain
their present high standards in comparison with the people of other
states and so that opportunities for improving the economic welfare
of the people of this state, for improving the housing of residents
of this state, and for favorable markets for the products of this
state's natural resources, agriculture, and manufacturing shall be
improved; and that it is necessary for this state to establish the
program authorized pursuant to sections 4928.61 and 4928.62 of the
Revised Code.
Sec.
4928.75.
Beginning
in fiscal year 2021 and each fiscal year thereafter, the director of
housing
and
development
services
shall,
in each fiscal year, submit a completed waiver request in accordance
with section 96.83 of Title 45 of the Code of Federal Regulations to
the United States department of health and human services and any
other applicable federal agencies for the state to expend twenty-five
per cent of federal low-income home energy assistance programs funds
from the home energy assistance block grants for weatherization
services allowed by section 96.83(a) of Title 45 of the Code of
Federal Regulations to the United States department of health and
human services.
Sec.
4929.16.
As
used in sections 4929.16 to 4929.167 of the Revised Code:
(A)
"Infrastructure development" means constructing, upgrading,
extending, or any other investment in, or associated with,
transmission or distribution facilities that, except as provided for
in division (B)(2)(b) of this section, a natural gas company owns and
operates.
(B)(1)
"Infrastructure development costs" means costs associated
with an investment in infrastructure development to which either of
the following apply:
(a)
The investment is for any deposit required by the natural gas
company, as defined in the line-extension provision of the company's
tariff, less any contribution in aid of construction received from
the owner or developer of the project.
(b)
The investment is designed to provide natural gas service to a site
or economic development project that is supported by JobsOhio, any
JobsOhio network or regional partner, or the department of
housing
and
development.
(2)
"Infrastructure development costs" includes all of the
following:
(a)
Planning, development, and construction costs, including costs
incurred prior to the approval of an economic development project
pursuant to section 4929.163 of the Revised Code;
(b)
Costs associated with establishing or upgrading any connections with
any source of supply to serve an economic development project,
including interstate or intrastate pipelines, regardless of ownership
of the facilities;
(c)
A return on all infrastructure development costs, with such return
equal to the natural gas company's return on equity authorized in the
natural gas company's most recently approved rate case under section
4909.18 of the Revised Code.
Sec.
4929.161.
(A)
A natural gas company may file an application with the public
utilities commission for approval of an infrastructure development
rider to recover prudently incurred infrastructure development costs
of one or more economic development projects approved under section
4929.163 of the Revised Code.
(B)
The commission shall approve a maximum of one infrastructure
development rider per company.
(C)
The commission shall not accept an application for infrastructure
development costs described under division (B)(1)(b) of section
4929.16 of the Revised Code unless a natural gas company has obtained
a notification by JobsOhio, any JobsOhio network or regional partner,
or the director of
housing
and
development
that the project should be considered. The commission shall not
approve an application for an economic development project that
includes infrastructure development costs described under division
(B)(1)(b) of section 4929.16 of the Revised Code filed beyond six
years from
March
28, 2024,
the
effective date of the amendment to this section by H.B. 201 of the
135th general assembly.
(D)
Notwithstanding division (C) of this section, recovery of
infrastructure development costs pursuant to section 4929.16 of the
Revised Code for any approved economic development projects filed
within six years of
March
28, 2024,
the
effective date of the amendment to this section by H.B. 201 of the
135th general assembly
,
shall
continue until such time as all costs eligible for recovery under
sections 4929.16 to 4929.163 of the Revised Code are recovered.
Sec.
4929.163.
(A)
A natural gas company may file an application with the public
utilities commission for approval of an economic development project
for which the company will incur infrastructure development costs.
(B)
The company shall file the application for project approval prior to
beginning the project.
(C)
The application for project approval, to the extent applicable, shall
contain a description of each of the following:
(1)
The economic development project;
(2)
The infrastructure development costs to be expended on the project;
(3)
How the project meets the criteria set forth in rules adopted under
division (D) of this section;
(4)
The support for the project by an economic development entity or
chamber of commerce. For purposes of this application requirement,
"economic development entity" includes any of the
following:
(a)
JobsOhio or any JobsOhio network or regional partner;
(b)
Department of
housing
and
development;
(c)
Port authority created under Chapter 4582. of the Revised Code;
(d)
Special improvement district created under Chapter 1710. of the
Revised Code;
(e)
Community urban redevelopment corporation qualified to operate under
Chapter 1728. of the Revised Code;
(f)
Community improvement corporation organized under Chapter 1724. of
the Revised Code;
(g)
New community authority organized under Chapter 349. of the Revised
Code;
(h)
Joint economic development district created under section 715.70 or
715.71 of the Revised Code;
(i)
Development corporation organized under Chapter 1726. of the Revised
Code;
(j)
Municipal utility district designated under section 715.84 of the
Revised Code.
(D)(1)
The commission shall adopt rules setting forth the criteria for
project approval under this section.
(2)
The commission may approve a project under this section that involves
infrastructure development costs described in division (B)(1)(a) of
section 4929.16 of the Revised Code if the infrastructure development
costs, excluding the return set forth in division (B)(2)(c) of
section 4929.16 of the Revised Code, are projected to generate a
return on the company's investment that is less than the most
recently authorized return on equity.
(E)
The commission shall adopt rules to provide for an accelerated review
of an application filed under division (A) of this section. The rules
shall provide for the automatic approval of the application not later
than thirty days after the date of the application filing unless the
commission suspends the application for good cause shown. If the
application is suspended, the commission shall approve, deny, modify,
or hold a hearing on the application not later than forty-five days
after the date that the suspension begins.
Sec.
4981.02.
(A)
There is hereby created the Ohio rail development commission, as an
independent agency of the state within the department of
transportation, consisting of the following members:
(1)
Two members of the Ohio senate, one of whom shall be appointed by and
serve at the pleasure of the president of the senate and one of whom
shall be appointed by and serve at the pleasure of the minority
leader of the senate;
(2)
Two members of the Ohio house of representatives, one of whom shall
be appointed by and serve at the pleasure of the speaker of the house
of representatives and one of whom shall be appointed by and serve at
the pleasure of the minority leader of the house of representatives;
(3)
Two members representing the general public, one of whom shall be
appointed by the president of the senate and one of whom shall be
appointed by the speaker of the house of representatives;
(4)
The director of transportation, or the director's designee, who shall
be an ex officio member;
(5)
The director of
housing
and
development,
or the director's designee, who shall be an ex officio member;
(6)
The following members appointed by the governor with the advice and
consent of the senate:
(a)
One member, who shall serve as chairperson of the commission until
October 21, 2025, or an earlier date if the member resigns or
otherwise leaves office;
(b)
One member, who shall represent the interests of a freight rail
company;
(c)
One member, who shall represent the interests of passenger rail
service;
(d)
One member, who shall have expertise in infrastructure financing;
(e)
One member, who shall represent the interests of organized labor;
(f)
One member, who shall represent the interests of manufacturers;
(g)
One member who shall represent the general public, subject to
division (B) of this section.
(B)
Beginning on October 21, 2025, or at an earlier date if there is a
vacancy in the position of chairperson, the director of
transportation or the director's designee shall serve as the
chairperson of the commission. Upon the director or director's
designee assuming the position of chairperson, the governor shall
appoint an additional member to the commission to represent the
general public.
(C)
All members shall be reimbursed for actual expenses incurred in the
performance of their duties. The members of the commission from the
Ohio senate and the Ohio house of representatives shall serve as
nonvoting members. No more than four members of the seven appointed
to the commission by the governor shall be from the same political
party. Each member of the commission shall be a resident of this
state.
(D)
Within sixty days after October 20, 1994, the governor shall make
initial appointments to the commission. Of the initial appointments
made to the commission, three shall be for a term ending three years
after October 20, 1994, and three shall be for a term ending six
years after that date. Terms for all other appointments made to the
commission shall be for six years. Vacancies shall be filled in the
manner provided for original appointments. Any member appointed to
fill a vacancy shall have the same qualifications as the member's
predecessor. Each term shall end on the same day of the same month of
the year as did the term which it succeeds. Each appointed member
shall hold office from the date of the member's appointment until the
end of the term for which the member was appointed. Any member
appointed to fill a vacancy before the expiration of the term for
which the member's predecessor was appointed shall hold office for
the remainder of that term. Any appointed member shall continue in
office subsequent to the expiration date of the member's term until
the member's successor takes office, or for a period of sixty days,
whichever occurs first. All members shall be eligible for
reappointment.
(E)
The commission may employ an executive director, who shall have
appropriate experience as determined by the commission, and a
secretary-treasurer and other employees that the commission considers
appropriate. The commission may fix the compensation of the
employees.
(F)
Six members of the commission shall constitute a quorum, and the
affirmative vote of six members shall be necessary for any action
taken by the commission. No vacancy in the membership of the
commission shall impair the rights of a quorum to exercise all the
rights and perform all the duties of the commission.
(G)
All members of the commission are subject to Chapter 102. of the
Revised Code.
(H)
The department of transportation may use all appropriate sources of
revenue to assist the commission in developing and implementing rail
service.
(I)
Expenditures by the department of transportation, the Ohio rail
development commission, or any other state agency for capital
improvements for the development of passenger rail shall be subject
to the approval of the controlling board with an affirmative vote of
not fewer than five members, including the affirmative vote of a
majority of the controlling board members appointed by the president
of the senate and a majority of the controlling board members
appointed by the speaker of the house of representatives. All public
funds acquired by the commission shall be used for developing,
implementing, and regulating rail service and not for operating rail
service unless the general assembly specifically approves the
expenditure of funds for operating rail service.
Sec.
4981.03.
(A)
The Ohio rail development commission shall do all of the following:
(1)
Develop, promote, and support safe, adequate, and efficient rail
service throughout the state;
(2)
Maintain adequate programs of investigation, research, promotion,
planning, and development for rail service, which programs shall
include the consideration of recommendations by public or private
planning organizations;
(3)
Provide for the participation of private corporations or
organizations and the public in the development, construction,
operation, and maintenance of rail service, and as franchisees of
rail service.
(B)
In regard to rail service, the Ohio rail development commission is
the successor of the Ohio high speed rail authority and the division
of rail transportation of the department of transportation. The
commission shall succeed to all federal allotments, entitlements,
subsidies, and grants now existing, whether such allotments,
entitlements, subsidies, and grants are encumbered or unencumbered,
in the same manner and with the same authority as the Ohio high speed
rail authority and the division of rail transportation exercised
prior to October 20, 1994.
(C)
Every authority, commission, department, or other agency of this
state shall provide the commission with data, plans, research, and
any other information that the commission requests to assist it in
performing its duties pursuant to this chapter.
(D)
The commission may request and contract with any railroad to provide
it with data and information necessary to carry out the purposes of
this chapter. All railroads operating within this state shall provide
the requested data and information to the commission. The commission
shall not disclose any confidential data or information supplied to
it.
(E)
The commission shall cooperate with the director of
housing
and
development
by exercising the commission's duty to promote and develop rail
service in this state in conjunction with the director's exercise of
his
duty to promote the economic development of this state.
(F)
The commission, when developing rail service throughout the state,
may give priority to projects undertaken within the geographic
boundaries of qualifying subdivisions.
Sec.
5101.16.
(A)
As used in this section and sections 5101.161 and 5101.162 of the
Revised Code:
(1)
"Disability financial assistance" means the financial
assistance program established under former Chapter 5115. of the
Revised Code.
(2)
"Supplemental nutrition assistance program" means the
program administered by the department of job and family services
pursuant to section 5101.54 of the Revised Code.
(3)
"Ohio works first" means the program established by Chapter
5107. of the Revised Code.
(4)
"Prevention, retention, and contingency" means the program
established by Chapter 5108. of the Revised Code.
(5)
"Public assistance expenditures" means expenditures for all
of the following:
(a)
Ohio works first;
(b)
County administration of Ohio works first;
(c)
Prevention, retention, and contingency;
(d)
County administration of prevention, retention, and contingency;
(e)
Disability financial assistance;
(f)
County administration of disability financial assistance;
(g)
County administration of the supplemental nutrition assistance
program;
(h)
County administration of medicaid, excluding administrative
expenditures for transportation services covered by the medicaid
program.
(6)
"Title IV-A program" has the same meaning as in section
5101.80 of the Revised Code.
(B)
Each board of county commissioners shall pay the county share of
public assistance expenditures in accordance with section 5101.161 of
the Revised Code. Except as provided in division (C) of this section,
a county's share of public assistance expenditures is the sum of all
of the following for state fiscal year 1998 and each state fiscal
year thereafter:
(1)
The amount that is twenty-five per cent of the county's total
expenditures for disability financial assistance and county
administration of that program during the state fiscal year ending in
the previous calendar year that the department of job and family
services determines are allowable.
(2)
The amount that is ten per cent, or other percentage determined under
division (D) of this section, of the county's total expenditures for
county administration of the supplemental nutrition assistance
program and medicaid (excluding administrative expenditures for
transportation services covered by the medicaid program) during the
state fiscal year ending in the previous calendar year that the
department determines are allowable, less the amount of federal
reimbursement credited to the county under division (E) of this
section for the state fiscal year ending in the previous calendar
year;
(3)
A percentage of the actual amount of the county share of program and
administrative expenditures during federal fiscal year 1994 for
assistance and services, other than child care, provided under Titles
IV-A and IV-F of the "Social Security Act," 49 Stat. 620
(1935), 42 U.S.C. 301, as those titles existed prior to the enactment
of the "Personal Responsibility and Work Opportunity
Reconciliation Act of 1996," 110 Stat. 2105. The department of
job and family services shall determine the actual amount of the
county share from expenditure reports submitted to the United States
department of health and human services. The percentage shall be the
percentage established in rules adopted under division (F) of this
section.
(C)(1)
If a county's share of public assistance expenditures determined
under division (B) of this section for a state fiscal year exceeds
one hundred five per cent of the county's share for those
expenditures for the immediately preceding state fiscal year, the
department of job and family services shall reduce the county's share
for expenditures under divisions (B)(1) and (2) of this section so
that the total of the county's share for expenditures under division
(B) of this section equals one hundred five per cent of the county's
share of those expenditures for the immediately preceding state
fiscal year.
(2)
A county's share of public assistance expenditures determined under
division (B) of this section may be increased pursuant to section
5101.163 of the Revised Code and a sanction under section 5101.24 of
the Revised Code. An increase made pursuant to section 5101.163 of
the Revised Code may cause the county's share to exceed the limit
established by division (C)(1) of this section.
(D)(1)
If the per capita tax duplicate of a county is less than the per
capita tax duplicate of the state as a whole and division (D)(2) of
this section does not apply to the county, the percentage to be used
for the purpose of division (B)(2) of this section is the product of
ten multiplied by a fraction of which the numerator is the per capita
tax duplicate of the county and the denominator is the per capita tax
duplicate of the state as a whole. The department of job and family
services shall compute the per capita tax duplicate for the state and
for each county by dividing the tax duplicate for the most recent
available year by the current estimate of population prepared by the
development services agency.
(2)
If the percentage of families in a county with an annual income of
less than three thousand dollars is greater than the percentage of
such families in the state and division (D)(1) of this section does
not apply to the county, the percentage to be used for the purpose of
division (B)(2) of this section is the product of ten multiplied by a
fraction of which the numerator is the percentage of families in the
state with an annual income of less than three thousand dollars a
year and the denominator is the percentage of such families in the
county. The department of job and family services shall compute the
percentage of families with an annual income of less than three
thousand dollars for the state and for each county by multiplying the
most recent estimate of such families published by the
department
of housing and
development
services agency
,
by a fraction, the numerator of which is the estimate of average
annual personal income published by the bureau of economic analysis
of the United States department of commerce for the year on which the
census estimate is based and the denominator of which is the most
recent such estimate published by the bureau.
(3)
If the per capita tax duplicate of a county is less than the per
capita tax duplicate of the state as a whole and the percentage of
families in the county with an annual income of less than three
thousand dollars is greater than the percentage of such families in
the state, the percentage to be used for the purpose of division
(B)(2) of this section shall be determined as follows:
(a)
Multiply ten by the fraction determined under division (D)(1) of this
section;
(b)
Multiply the product determined under division (D)(3)(a) of this
section by the fraction determined under division (D)(2) of this
section.
(4)
The department of job and family services shall determine, for each
county, the percentage to be used for the purpose of division (B)(2)
of this section not later than the first day of July of the year
preceding the state fiscal year for which the percentage is used.
(E)
The department of job and family services shall credit to a county
the amount of federal reimbursement the department receives from the
United States departments of agriculture and health and human
services for the county's expenditures for administration of the
supplemental nutrition assistance program and medicaid (excluding
administrative expenditures for transportation services covered by
the medicaid program) that the department determines are allowable
administrative expenditures.
(F)(1)
The director of job and family services shall adopt rules in
accordance with section 111.15 of the Revised Code to establish all
of the following:
(a)
The method the department is to use to change a county's share of
public assistance expenditures determined under division (B) of this
section as provided in division (C) of this section;
(b)
The allocation methodology and formula the department will use to
determine the amount of funds to credit to a county under this
section;
(c)
The method the department will use to change the payment of the
county share of public assistance expenditures from a calendar-year
basis to a state fiscal year basis;
(d)
The percentage to be used for the purpose of division (B)(3) of this
section, which shall, except as provided in section 5101.163 of the
Revised Code, meet both of the following requirements:
(i)
The percentage shall not be less than seventy-five per cent nor more
than eighty-two per cent;
(ii)
The percentage shall not exceed the percentage that the state's
qualified state expenditures is of the state's historic state
expenditures as those terms are defined in 42 U.S.C. 609(a)(7).
(e)
Other procedures and requirements necessary to implement this
section.
(2)
The director of job and family services may amend the rule adopted
under division (F)(1)(d) of this section to modify the percentage on
determination that the amount the general assembly appropriates for
Title IV-A programs makes the modification necessary. The rule shall
be adopted and amended as if an internal management rule and in
consultation with the director of budget and management.
Sec.
5104.30.
(A)
The department of children and youth is hereby designated as the
state agency responsible for administration and coordination of
federal and state funding for publicly funded child care in this
state. Publicly funded child care shall be provided to the following:
(1)
Recipients of transitional child care as provided under section
5104.34 of the Revised Code;
(2)
Participants in the Ohio works first program established under
Chapter 5107. of the Revised Code;
(3)
Individuals who would be participating in the Ohio works first
program if not for a sanction under section 5107.16 of the Revised
Code and who continue to participate in a work activity,
developmental activity, or alternative work activity pursuant to an
assignment under section 5107.42 of the Revised Code;
(4)
A family receiving publicly funded child care on October 1, 1997,
until the family's income reaches one hundred fifty per cent of the
federal poverty line;
(5)
Subject to available funds, other individuals determined eligible in
accordance with rules adopted under section 5104.38 of the Revised
Code.
The
department shall apply to the United States department of health and
human services for authority to operate a coordinated program for
publicly funded child care, if the director of children and youth
determines that the application is necessary. For purposes of this
section, the department of children and youth may enter into
agreements with other state agencies that are involved in regulation
or funding of child care. The department shall consider the special
needs of migrant workers when it administers and coordinates publicly
funded child care and shall develop appropriate procedures for
accommodating the needs of migrant workers for publicly funded child
care.
(B)
The department of children and youth shall distribute state and
federal funds for publicly funded child care, including
appropriations of state funds for publicly funded child care and
appropriations of federal funds available under the child care block
grant act, Title IV-A, and Title XX. The department may use any state
funds appropriated for publicly funded child care as the state share
required to match any federal funds appropriated for publicly funded
child care.
(C)
In the use of federal funds available under the child care block
grant act, all of the following apply:
(1)
The department may use the federal funds to hire staff to prepare any
rules required under this chapter and to administer and coordinate
federal and state funding for publicly funded child care.
(2)
Not more than five per cent of the aggregate amount of the federal
funds received for a fiscal year may be expended for administrative
costs.
(3)
The department shall allocate and use at least four per cent of the
federal funds for the following:
(a)
Activities designed to provide comprehensive consumer education to
parents and the public;
(b)
Activities that increase parental choice;
(c)
Activities, including child care resource and referral services,
designed to improve the quality, and increase the supply, of child
care;
(d)
Establishing the step up to quality program pursuant to section
5104.29 of the Revised Code.
(4)
The department shall ensure that the federal funds will be used only
to supplement, and will not be used to supplant, federal, state, and
local funds available on the effective date of the child care block
grant act for publicly funded child care and related programs. If
authorized by rules adopted by the department pursuant to section
5104.42 of the Revised Code, county departments of job and family
services may purchase child care from funds obtained through any
other means.
(D)
The department shall encourage the development of suitable child care
throughout the state, especially in areas with high concentrations of
recipients of public assistance and families with low incomes. The
department shall encourage the development of suitable child care
designed to accommodate the special needs of migrant workers. On
request, the department, through its employees or contracts with
state or community child care resource and referral service
organizations, shall provide consultation to groups and individuals
interested in developing child care. The department of children and
youth may enter into interagency agreements with the department of
education and workforce, the chancellor of higher education, the
department of
housing
and
development,
and other state agencies and entities whenever the cooperative
efforts of the other state agencies and entities are necessary for
the department of children and youth to fulfill its duties and
responsibilities under this chapter.
The
department shall develop and maintain a registry of persons providing
child care. The director shall adopt rules in accordance with Chapter
119. of the Revised Code establishing procedures and requirements for
the registry's administration.
(E)(1)
The director shall adopt rules in accordance with Chapter 119. of the
Revised Code establishing both of the following:
(a)
Reimbursement rates for providers of publicly funded child care not
later than the first day of July in each odd-numbered year;
(b)
A procedure for reimbursing and paying providers of publicly funded
child care.
(2)
In establishing reimbursement rates under division (E)(1)(a) of this
section, the director shall do all of the following:
(a)
Use the information obtained in accordance with 45 C.F.R. 98.45;
(b)
Establish an enhanced reimbursement rate for providers who provide
child care for caretaker parents who work nontraditional hours;
(c)
With regard to the step up to quality program established pursuant to
section 5104.29 of the Revised Code, establish enhanced reimbursement
rates for child care providers that participate in the program.
(3)
In establishing reimbursement rates under division (E)(1)(a) of this
section, the director may establish different reimbursement rates
based on any of the following:
(a)
Geographic location of the provider;
(b)
Type of care provided;
(c)
Age of the child served;
(d)
Special needs of the child served;
(e)
Whether the expanded hours of service are provided;
(f)
Whether weekend service is provided;
(g)
Whether the provider has exceeded the minimum requirements of state
statutes and rules governing child care;
(h)
Any other factors the director considers appropriate.
Sec.
5117.02.
(A)
The director of
housing
and
development
shall adopt rules, or amendments and rescissions of rules, pursuant
to section 4928.52 of the Revised Code, for the administration of the
Ohio energy credit program under sections 5117.01 to 5117.12 of the
Revised Code.
(B)
As a means of efficiently administering the program, the director may
extend, by as much as a total of thirty days, any date specified in
such sections for the performance of a particular action by an
individual or an officer.
(C)(1)
Except as provided in division (C)(2) of this section, the director
shall adopt, in accordance with divisions (A), (B), (C), (D), (E),
and (F) of section 119.03 and section 119.04 of the Revised Code,
whatever rules, or amendments or rescissions of rules are required by
or are otherwise necessary to implement sections 5117.01 to 5117.12
of the Revised Code. A rule, amendment, or rescission adopted under
this division is not exempt from the hearing requirements of section
119.03 of the Revised Code pursuant to division (H) of that section,
or subject to section 111.15 of the Revised Code.
(2)
If an emergency necessitates the immediate adoption of a rule, or the
immediate adoption of an amendment or rescission of a rule that is
required by or otherwise necessary to implement sections 5117.01 to
5117.12 of the Revised Code, the director immediately may adopt the
emergency rule, amendment, or rescission without complying with
division (A), (B), (C), (D), (E), or (F) of section 119.03 of the
Revised Code so long as the director states the reasons for the
necessity in the emergency rule, amendment, or rescission. The
emergency rule, amendment, or rescission is effective on the day the
emergency rule, amendment, or rescission, in final form and in
compliance with division (A)(2) of section 119.04 of the Revised
Code, is filed in electronic form with the secretary of state, the
director of the legislative service commission, and the joint
committee on agency rule review. If all filings are not completed on
the same day, the emergency rule, amendment, or rescission is
effective on the day on which the latest filing is completed. An
emergency rule, amendment, or rescission adopted under this division
is not subject to section 111.15 or division (G) of section 119.03 of
the Revised Code. An emergency rule, amendment, or rescission adopted
under this division continues in effect until amended or rescinded by
the director in accordance with division (C)(1) or (2) of this
section, except that the rescission of an emergency rescission does
not revive the rule rescinded.
(D)
Except where otherwise provided, each form, application, notice, and
the like used in fulfilling the requirements of sections 5117.01 to
5117.12 of the Revised Code shall be approved by the director.
Sec.
5117.03.
(A)(1)
The director of
housing
and
development
shall prescribe the form of the application for assistance under the
Ohio energy credit program. The application shall be in the form of a
signed statement, shall require no more information than is necessary
to establish an applicant's eligibility under section 5117.07 of the
Revised Code, and shall be clear and concise in its format,
requirements, and instructions. The form shall request the following
information:
(a)
The name and address of the applicant;
(b)
The type of energy or commodity that is the source of the heat
produced by the primary heating system in the residence of the
applicant;
(c)
The name of the energy company or energy dealer that supplies the
energy or commodity that is the source of the heat produced by the
primary heating system in the residence of the applicant and, if the
applicant receives the applicant's energy from a company, the
applicant's account number;
(d)
The applicant's total income or current total income;
(e)
In the case of an application based upon physical disability, a
certification signed by a physician, in the case of an application
based upon mental disability, a certification signed by a physician
or psychologist, or in the case of either such disability, a
certification from a state or federal agency having the function of
so classifying persons;
(f)
The age of the applicant;
(g)
Any other information required to make eligibility determinations
under section 5117.07 of the Revised Code.
Each
form shall contain a statement that signing such application
constitutes a delegation of authority by the applicant to the
director to examine any financial records that relate to income
earned by the applicant as stated on the application for the purpose
of determining eligibility under section 5117.07 of the Revised Code
and possible violation of division (B) of section 5117.11 of the
Revised Code.
(2)
The director shall mail or otherwise provide an application form to
each person requesting such form.
(B)(1)
The director shall devise and prescribe an application renewal form
on which the head of household may indicate by check mark that the
head of household received a credit or payment for the preceding
heating season. Application renewal forms shall seek from persons
applying on such basis a certification by the applicant attesting to
the applicant's permanent and total disability and the name of a
physician, psychologist, or government agency willing to provide an
additional certification if so requested under division (D) of
section 5117.07 of the Revised Code. Such forms shall also include
such other information as the director requires and shall be clear
and concise in format, requirements, and instructions.
(2)
On or before the fifteenth day of June, the director shall mail or
otherwise provide an application renewal form to each head of
household who received a credit or payment during the preceding
heating season.
(3)
Application renewal forms shall be reviewed and disposed of in the
same manner provided for application forms in section 5117.07 of the
Revised Code.
(C)
Applications and application renewal forms shall be returned to the
director no later than the first day of September. If an applicant is
determined eligible for a credit under division (A)(1) of section
5117.07 of the Revised Code and the applicant's account number is not
provided on the application form pursuant to division (A)(1)(c) of
this section, the director shall make a good faith effort to acquire
such number before certifying the applicant's eligibility to an
energy company under section 5117.08 of the Revised Code. The
director may request an energy company to assist in efforts to
acquire an applicant's account number and, if so requested, a company
shall cooperate in such efforts.
Sec.
5117.04.
(A)
Every energy company and energy dealer, at least once during June,
and once during August, shall begin to distribute to each of its
residential heating customers a plain and clear notice, printed in
ten-point type on a sheet or card on which no other words appear on
either the front or back, that states the right of qualified
residential customers to receive a credit or payment under the Ohio
energy credit program and that explains in detail, in a fashion
reasonably calculated to inform, the relevant mechanisms established
under sections 5117.01 to 5117.12 of the Revised Code to effectuate
that right. The notice shall also contain, in ten-point boldface
type, the following statement: "The right of eligible customers
to receive a credit against utility bills or a payment for energy
bills is provided in legislation (House Bill 657) passed by the
General Assembly and signed by the Governor."
(B)
The director of
housing
and
development
shall cause to be printed notices of the type specified in division
(A) of this section and application forms in sufficient quantity for
distribution. The director shall maintain a system for distributing
application forms to appropriate public locations. The distribution
system shall be designed to make application forms available to as
many qualified persons as possible.
(C)
The director shall arrange for the establishment of a toll-free
telephone number to enable all persons in this state to make
inquiries and obtain information concerning the credits or payments.
Sec.
5117.05.
The
director of
housing
and
development,
in consultation with the commission on Hispanic-Latino affairs, shall
develop an outreach program, including Spanish-speaking communication
formats, designed to make all Spanish-speaking persons who meet the
eligibility requirements for participation in the Ohio energy credit
program aware of the nature and extent of available benefits and
methods for acquiring and making applications. The program shall
include assistance to such persons in making applications. The
director shall implement the program in cooperation with the
commission.
Sec.
5117.07.
(A)
On or before the first day of October, the director of
housing
and
development
shall review all applications submitted under division (C) of section
5117.03 of the Revised Code and shall determine the eligibility of
each applicant to receive a credit or payment. The total income and
current total income amounts set forth in division (A) of this
section are subject to adjustment under section 5117.071 of the
Revised Code.
(1)
An applicant is eligible for a credit of thirty per cent if the
applicant is a head of household, has a total income of five thousand
dollars or less or a current total income of two thousand five
hundred dollars or less, owns and occupies or rents and occupies a
household receiving the source of energy for its primary heating
system from an energy company and such energy is separately metered,
and is either of the following:
(a)
Sixty-five years of age or older;
(b)
Permanently and totally disabled.
(2)
An applicant is eligible for a credit of twenty-five per cent if the
applicant is a head of household, has a total income of more than
five thousand dollars but not more than nine thousand dollars or a
current total income of more than two thousand five hundred dollars
but not more than four thousand five hundred dollars, is sixty-five
years of age or older or permanently and totally disabled, and owns
and occupies or rents and occupies a household receiving the source
of energy for its primary heating system from an energy company and
such energy is separately metered.
(3)
An applicant is eligible for a payment if either of the following
applies to the applicant:
(a)
The applicant would be eligible for the credit under division (A)(1)
or (2) of this section but for the fact that the source of energy for
the primary heating system of the applicant's household is not
separately metered;
(b)
The applicant is a head of household, has a total income of no more
than nine thousand dollars or a current total income of no more than
four thousand five hundred dollars, is sixty-five years of age or
older or permanently and totally disabled, and owns and occupies or
rents and occupies a household receiving the source of energy for its
primary heating system from an energy dealer.
(4)
In the case of a multiple unit dwelling for which separate metering
for the source of energy for its primary heating system is not
provided, more than one applicant occupying such dwelling may be
determined eligible for a payment under division (A)(3)(a) of this
section.
(B)
Notwithstanding division (A) of this section:
(1)
No head of household who resides in public housing or receives a rent
subsidy from a government agency is eligible for a credit or payment
unless the person's rent subsidy does not reflect the costs of that
person's household receiving the source of energy for its primary
heating system;
(2)
A resident of a nursing home, hospital, or other extended health care
facility is not eligible for a credit or payment for the costs of
providing the source of energy for the primary heating system of the
facility.
(C)
The director shall establish a procedure whereby the director
commissioner
can verify total income and current total income for the calendar
year in which an applicant is determined eligible for a payment or
credit. If a person receives a credit or payment that the person is
ineligible to receive under division (A) of this section as
determined by the director, that person shall refund to the director
the credit or payment, or excess portion of a credit or payment, that
person received. The sum refunded shall be deposited in the state
treasury to the credit of the universal service fund created in
section 4928.51 of the Revised Code.
(D)
The director may request an additional certification of permanent and
total disability for any applicant claiming such status on an
application renewal form submitted under section 5117.03 of the
Revised Code. Such certification shall be requested from the person
or agency named on the form pursuant to division (B)(1) of section
5117.03 of the Revised Code. If such additional certification is
refused due to a conclusion by the person or agency that the
applicant is not permanently and totally disabled, the director shall
determine the applicant ineligible for any credit or payment. If such
additional certification is unavailable or refused for any other
reason, the director may determine the applicant to be eligible for a
credit or payment provided the director
commissioner
has good cause to believe the applicant is permanently and totally
disabled.
(E)
On or before the first day of October, the director shall notify each
applicant of the disposition of the applicant's application under
divisions (A) and (B) of this section. At the same time, the director
tax
commissioner
shall notify the applicant, regardless of whether the applicant's
application is approved or disapproved, that the applicant may be
eligible to participate in a state or federal weatherization program
and should contact the applicant's community action agency for
further information. If an application is disapproved, the applicant
may appeal to the director for a hearing on the matter. A notice of
disapproval shall include a detailed explanation of the applicant's
right of appeal under this chapter. Any such appeal shall be on an
appeal form prescribed by the director and shall be filed with the
director within twenty days of the receipt of the notice of
disapproval.
Sec.
5117.071.
(A)
In September of each year, the
tax
commissioner
director
of housing and development
shall
adjust the total income amounts set forth in sections 5117.07 and
5117.09 of the Revised Code to be used for applications submitted for
the heating season commencing in the next calendar year, by
completing the following steps:
(1)
Determine the percentage increase in the gross domestic product
deflator determined by the bureau of economic analysis of the United
States department of commerce for the preceding year;
(2)
Multiply that percentage increase by each of the total income amounts
for the preceding year;
(3)
Add the resulting products to each of the total income amounts for
the preceding year;
(4)
Round the resulting sums upward to the nearest multiple of ten
dollars.
The
commissioner
director
shall
not make the adjustment in any year in which the amounts resulting
from the adjustment would be less than the total income amounts for
the preceding year.
(B)
In September of each year, the
tax
commissioner
director
of housing and development
also
shall adjust the current total income amounts set forth in sections
5117.07 and 5117.09 of the Revised Code. For any year, the current
total income amounts shall equal one-half of the respective total
income amounts set forth in those sections and adjusted under
division (A) of this section for that year.
(C)
Each
year, the tax commissioner shall provide both the adjusted total
income amounts referred to in division (A) of this section and the
current total income amounts referred to in division (B) of this
section to the director of development.
(D)
The
director of
housing
and
development
and each energy company and energy dealer shall use the adjusted
total income amounts and the current total income amounts determined
under divisions (A) and (B) of this section in performing their
duties under sections 5117.01 to 5117.12 of the Revised Code.
Sec.
5117.08.
(A)(1)
On or before the tenth day of October, the director of
housing
and
development
shall begin to prepare and certify to each energy company that
provides energy for home heating a list containing the name and
account number of each head of household determined eligible for a
credit under divisions (A) and (B) of section 5117.07 of the Revised
Code and served by that company, the address of the household, and
the source of the heat produced by the primary heating system in the
residence of the applicant. The director, for good cause, may certify
addenda to such lists, containing the names of any heads of household
whose names were not included in the earlier lists but who, except
for failure to meet the deadline requirements of sections 5117.01 to
5117.12 of the Revised Code, would have been certified in the
original lists. Within thirty days of receipt of such list and in any
month for which a credit is required under sections 5117.01 to
5117.12 of the Revised Code, the company may verify that each head of
household on the director's list receives energy for home heating at
the household address appearing on such list or that the source of
heat produced by the primary heating system in the household is
energy supplied by the company. If the company determines that a
person listed does not receive energy for home heating at such
address or that the source of the heat produced by the primary
heating system in the residence of such person is not supplied by the
company, it shall notify the director of such fact and may refuse to
grant the credit provided under division (A) of section 5117.07 of
the Revised Code. Upon receipt of such notice, the director shall
determine the accuracy of the determination of the company and,
should the director not concur with the company, shall order the
company to provide the credit.
(2)
The good faith exercise by any company of any power of refusal
granted under division (A)(1) of this section does not subject such
company to any penalty or liability provided under division (A) of
section 5117.11 of the Revised Code.
(B)(1)
Nothing in sections 5117.01 to 5117.12 of the Revised Code shall be
construed to abridge the right of an otherwise eligible applicant to
receive a credit or payment because the applicant has either changed
the location of the applicant's residence or the nature of the
occupancy of the applicant's residence, as between a tenant or an
owner, at a time that could, as a result of the operation of sections
5117.01 to 5117.12 of the Revised Code, cause the applicant to be
disqualified from receiving, or continuing to receive, the credit or
payment.
(2)
Where a person who submits a form or information required under
sections 5117.01 to 5117.10 of the Revised Code does so in a timely
fashion but, because of the occurrence of an error or omission with
respect to such form or information, either on the person's own part
or on the part of those persons required by sections 5117.01 to
5117.12 of the Revised Code to take administrative, executive, or
ministerial action regarding such form or information, the
certification of eligibility by the director to an energy company
takes place after the expiration of a deadline imposed under sections
5117.01 to 5117.12 of the Revised Code, the company shall grant the
credit within thirty days and, whenever appropriate, grant the credit
on a retroactive basis.
(3)
The director shall adopt a rule ensuring that the requirements of
divisions (B)(1) and (2) of this section are effectuated.
Sec.
5117.09.
(A)(1)
With respect to each of its residential customers, every energy
company shall, after receipt of a certification list provided under
division (A) of section 5117.08 of the Revised Code, cause the
granting of a credit in accordance with this section against the
monthly billing of each household appearing on the list except as
provided in division (A) of section 5117.08 of the Revised Code. In
the case of an applicant who has a total income of five thousand
dollars or less or a current total income of two thousand five
hundred dollars or less, the credit shall amount to thirty per cent
of the current monthly bill rendered to such household by the company
for the billing months of December, January, February, March, and
April following the receipt of a list on which the household appears.
In the case of an applicant who has a total income of more than five
thousand dollars but not more than nine thousand dollars or a current
total income of more than two thousand five hundred dollars but not
more than four thousand five hundred dollars, the credit shall amount
to twenty-five per cent of the current monthly bill rendered to such
household by the company for the billing months of December, January,
February, March, and April following the receipt of a list on which
the household appears. If purchased power costs are incurred by an
energy company during the billing month for which a credit is
provided under this division, the credit shall also be applied to
such costs, whether or not the costs are charged to a current monthly
bill for such months.
(2)
The total income and current total income amounts set forth in
division (A)(1) of this section are subject to adjustment under
section 5117.071 of the Revised Code.
(B)
Every energy company shall read the meter of each of its qualified
residential customers who may receive a credit under division (A) of
this section at least one time for the service period of November and
at least one time in the service period for the current monthly bill
rendered for the billing month of April. In the event a company is
unable to read a meter because of failure to gain access after a good
faith effort or because a certification list was supplied to the
utility fewer than thirty days prior to the normal date of meter
reading, the company may render a calculated bill. In such instances,
the company shall make an adjustment to the amount of the credit
granted to the customer based upon the next actual reading of the
meter if the reading shows the previous calculation to have been in
error and set forth the amount of such adjustments in the report
required to be filed with the director of
housing
and
development
under division (D) of this section.
(C)
On each billing that is subject to a credit under division (A) of
this section, there shall appear in ten-point type both the amount of
the credit and to the left of such amount
"
Ohio
Energy Credit.
"
(D)
On or before the fifteenth day of each month following one in which
credits were provided under division (A) of this section, each energy
company shall, on a form prescribed by the director and requesting
information that the director
commissioner
determines is necessary for the purpose of verifying the propriety of
the payment of credits, certify to the director the total amount of
all credits it granted pursuant to division (A) of this section
during the preceding month. Not later than thirty days after receipt
of such certification, the director shall pay the company the amount
certified. If the director determines that a company previously
received amounts greater than the amounts of credits properly
granted, such company, upon notice from the director, shall reimburse
the director in the amount of the overpayments. Such reimbursements
shall be deposited in the general revenue fund.
(E)(1)
Any energy company that purposely fails to grant the credit provided
under division (A) of this section is liable to each person entitled
to the credit and certified to the company by the director pursuant
to division (A) of section 5117.08 of the Revised Code in treble the
amount of the total credit not granted. The consumers' counsel, on
behalf of any person or persons not granted the credit, may bring an
action to recover such treble damages in the court of common pleas of
the county in which is located the office of the company nearest the
household of any such person or persons. The consumers' counsel also,
on behalf of any persons not granted the credit, may bring a class
action to recover such treble damages in the court of common pleas of
any county in which is located an office of the company and, if
feasible, in which is located a significant number of members of the
class. Any treble damage recovery under this division does not, in
any manner, diminish any other liability provided under sections
5117.01 to 5117.12 of the Revised Code. Clerical errors shall not be
considered an offense or incur liability under this division.
(2)
An action shall be brought by the consumers' counsel under division
(E)(1) of this section only after the consumers' counsel has made a
good faith attempt to dispose of the claim by settlement, including a
good faith request for only such information in the possession of an
energy company as is needed to determine the existence or extent of
such a right of action.
(3)
Nothing in division (E)(1) of this section shall be construed to
prevent persons acting without the assistance of the consumers'
counsel from bringing an action or class action under such division.
Sec.
5117.10.
(A)
On or before the fifteenth day of January, the director of
housing
and
development
services
shall
pay each applicant determined eligible for a payment under divisions
(A) and (B) of section 5117.07 of the Revised Code one hundred
twenty-five dollars.
(B)
The director may withhold from any payment to which a person would
otherwise be entitled under division (A) of this section any amount
that the director determines was erroneously received by such person
in a preceding year under this or the program established under Am.
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, Am.
Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general assembly,
provided the director has employed all other legal methods reasonably
available to obtain reimbursement for the erroneous payment or credit
prior to the commencement of the current program year.
(C)
Payments made under this section and credits granted under section
5117.09 of the Revised Code shall not be considered income for the
purpose of determining eligibility or the level of benefits or
assistance under section 329.042 or Chapter 5107. of the Revised
Code; the medicaid program; supplemental security income payments
under Title XVI of the "Social Security Act," 49 Stat. 620
(1935), 42 U.S.C. 301, as amended; or any other program under which
eligibility or the level of benefits or assistance is based upon need
measured by income.
Sec.
5117.12.
(A)
On or before the thirty-first day of August of each year, each energy
company shall file a written report with the director of
housing
and
development
regarding the impact, if any, of the requirements of division (E) of
section 5117.11 of the Revised Code on the number of uncollectible
and past due residential accounts for the twelve-month period ending
on the preceding thirty-first day of July. The report shall include
such information as is prescribed by the director. The information
shall be based on actual reviews of residential customer accounts and
shall be presented in verifiable form. The director may consult with
the public utilities commission and the consumers' counsel in
prescribing the contents of such reports and complying with the
requirements of division (C)(4) of this section.
(B)
Before the thirty-first day of January of each year, the director
shall prepare a written report including a final review of the Ohio
energy credit program for which applications were required to be
mailed or provided by the fifteenth day of June of the second
preceding calendar year pursuant to section 5117.03 of the Revised
Code and an interim review of the program for which applications were
required to be mailed or provided by the fifteenth day of June of the
preceding calendar year under such section. On or before the
thirty-first day of January of each year, the director shall provide
written copies of such report to the speaker of the house of
representatives, president of the senate, minority leaders of the
house of representatives and senate, chairpersons of the house
finance and appropriations committee and senate finance committee,
chairpersons of the committees of the house of representatives and
senate customarily entrusted with matters concerning public
utilities, clerk of the house of representatives, and clerk of the
senate.
(C)
Each report prepared under division (B) of this section shall include
a review of:
(1)
Program costs;
(2)
The number of persons receiving credits or payments under the
program;
(3)
Progress in the implementation of any changes in the program made by
the general assembly within the period covered by the report;
(4)
The impact, if any, of the requirements of division (E) of section
5117.11 of the Revised Code on the number of uncollectible and past
due residential accounts of energy companies for the twelve-month
period ending on the preceding thirty-first day of July;
(5)
The impact of any federal energy assistance programs available to the
same groups of people as are eligible for the energy credit program
under sections 5117.01 to 5117.12 of the Revised Code, together with
any recommendations on modifications that may, because of the federal
programs, be needed in the energy credit program;
(6)
Any suggestions for improving the program;
(7)
Any other matters considered appropriate by the director.
(D)
The director shall consult with the auditor of state, energy
companies, energy dealers, department of aging, and commission on
Hispanic-Latino affairs in the preparation of any report under this
section. The director may require information from such agencies for
the purpose of preparing such report.
Sec.
5117.22.
All
petroleum violation escrow funds received by this state from the
federal government shall be deposited in the state treasury to the
credit of the energy oil overcharge fund, which is hereby created.
The fund shall be used by the
department
of housing and
development
services
agency
for
energy conservation and assistance programs approved by the United
States department of energy. All investment earnings of the fund
shall be credited to the fund.
Sec.
5119.34.
(A)
As used in this section and sections 5119.341 to 5119.343 of the
Revised Code:
(1)
"Accommodations" means housing, daily meal preparation,
laundry, housekeeping, arranging for transportation, social and
recreational activities, maintenance, security, and other services
that do not constitute personal care services or skilled nursing
care.
(2)
"ADAMHS board" means a board of alcohol, drug addiction,
and mental health services.
(3)
"Adult" means a person who is eighteen years of age or
older, other than a person described in division (A)(4) of this
section who is between eighteen and twenty-one years of age.
(4)
"Child" means a person who is under eighteen years of age
or a person with a mental disability who is under twenty-one years of
age.
(5)
"Community mental health services provider" means a
community mental health services provider as defined in section
5119.01 of the Revised Code.
(6)
"Community mental health services" means any mental health
services certified by the department pursuant to section 5119.36 of
the Revised Code.
(7)
"Operator" means the person or persons, firm, partnership,
agency, governing body, association, corporation, or other entity
that is responsible for the administration and management of a
residential facility and that is the applicant for a residential
facility license.
(8)
"Personal care services" means services including, but not
limited to, the following:
(a)
Assisting residents with activities of daily living;
(b)
Assisting residents with self-administration of medication in
accordance with rules adopted under this section;
(c)
Preparing special diets, other than complex therapeutic diets, for
residents pursuant to the instructions of a physician or a licensed
dietitian, in accordance with rules adopted under this section.
"Personal
care services" does not include "skilled nursing care"
as defined in section 3721.01 of the Revised Code. A facility need
not provide more than one of the services listed in division (A)(8)
of this section to be considered to be providing personal care
services.
(9)
"Room and board" means the provision of sleeping and living
space, meals or meal preparation, laundry services, housekeeping
services, or any combination thereof.
(10)
"Residential state supplement program" means the program
established under section 5119.41 of the Revised Code.
(11)
"Supervision" means any of the following:
(a)
Observing a resident to ensure the resident's health, safety, and
welfare while the resident engages in activities of daily living or
other activities;
(b)
Reminding a resident to perform or complete an activity, such as
reminding a resident to engage in personal hygiene or other self-care
activities;
(c)
Assisting a resident in making or keeping an appointment.
(12)
"Unrelated" means that a resident is not related to the
owner or operator of a residential facility or to the owner's or
operator's spouse as a parent, grandparent, child, stepchild,
grandchild, brother, sister, niece, nephew, aunt, or uncle, or as the
child of an aunt or uncle.
(B)(1)
A "residential facility" is a publicly or privately
operated home or facility that falls into one of the following
categories:
(a)
Class one facilities provide accommodations, supervision, personal
care services, and mental health services for one or more unrelated
adults with mental illness or one or more unrelated children or
adolescents with severe emotional disturbances;
(b)
Class two facilities provide accommodations, supervision, and
personal care services to any of the following:
(i)
One or two unrelated persons with mental illness;
(ii)
One or two unrelated adults who are receiving payments under the
residential state supplement program;
(iii)
Three to sixteen unrelated adults.
(c)
Class three facilities provide room and board for five or more
unrelated adults with mental illness.
(2)
"Residential facility" does not include any of the
following:
(a)
A hospital subject to licensure under section 5119.33 of the Revised
Code or an institution maintained, operated, managed, and governed by
the department of mental health and addiction services for the
hospitalization of persons with mental illnesses pursuant to section
5119.14 of the Revised Code;
(b)
A residential facility licensed under section 5123.19 of the Revised
Code or otherwise regulated by the department of developmental
disabilities;
(c)
An institution or association subject to certification under section
5103.03 of the Revised Code;
(d)
A facility operated by a hospice care program licensed under section
3712.04 of the Revised Code that is used exclusively for care of
hospice patients;
(e)
A nursing home, residential care facility, or home for the aging as
defined in section 3721.02 of the Revised Code;
(f)
A facility licensed under section 5119.37 of the Revised Code to
operate an opioid treatment program;
(g)
Any facility that receives funding for operating costs from the
department of
housing
and
development
under any program established to provide emergency shelter housing or
transitional housing for the homeless;
(h)
A terminal care facility for the homeless that has entered into an
agreement with a hospice care program under section 3712.07 of the
Revised Code;
(i)
A facility approved by the veterans administration under section
104(a) of the "Veterans Health Care Amendments of 1983," 97
Stat. 993, 38 U.S.C. 630, as amended, and used exclusively for the
placement and care of veterans;
(j)
The residence of a relative or guardian of a person with mental
illness.
(C)
Nothing in division (B) of this section shall be construed to permit
personal care services to be imposed on a resident who is capable of
performing the activity in question without assistance.
(D)
Except in the case of a residential facility described in division
(B)(1)(a) of this section, members of the staff of a residential
facility shall not administer medication to the facility's residents,
but may do any of the following:
(1)
Remind a resident when to take medication and watch to ensure that
the resident follows the directions on the container;
(2)
Assist a resident in the self-administration of medication by taking
the medication from the locked area where it is stored, in accordance
with rules adopted pursuant to this section, and handing it to the
resident. If the resident is physically unable to open the container,
a staff member may open the container for the resident.
(3)
Assist a resident who is physically impaired but mentally alert, such
as a resident with arthritis, cerebral palsy, or Parkinson's disease,
in removing oral or topical medication from containers and in
consuming or applying the medication, upon request by or with the
consent of the resident. If a resident is physically unable to place
a dose of medicine to the resident's mouth without spilling it, a
staff member may place the dose in a container and place the
container to the mouth of the resident.
(E)
A person operating or seeking to operate a residential facility shall
apply for licensure of the facility to the department of mental
health and addiction services. The application shall be submitted by
the operator. When applying for the license, the applicant shall pay
to the department the application fee specified in rules adopted
under division (N) of this section. The fee is nonrefundable.
The
department shall send a copy of an application to the ADAMHS board
serving the county in which the person operates or seeks to operate
the facility. The ADAMHS board shall review the application and
provide to the department any information about the applicant or the
facility that the board would like the department to consider in
reviewing the application.
(F)
The department of mental health and addiction services shall inspect
and license the operation of residential facilities. The department
may issue a license to operate a residential facility only if all of
the following are the case:
(1)
The department is satisfied, after investigation, that the facility
is managed and operated by qualified persons and is adequately
staffed and equipped to operate.
(2)
The department has not been notified under section 5119.343 of the
Revised Code or is not otherwise aware that the residential facility
or any owner, operator, or manager of the residential facility has
been the subject of an adverse action, as defined in that section,
taken during the three-year period immediately preceding the date of
application.
(3)
The department has not been notified or is not otherwise aware that
the residential facility or any owner, operator, or manager of the
facility has been the subject of an adverse action, as defined in
that section, taken at any time based on an act or omission that
violated the right of a residential facility resident to be free from
abuse, neglect, or exploitation.
The
department may issue full, probationary, and interim licenses. A full
license shall expire up to three years after the date of issuance, a
probationary license shall expire in a shorter period of time as
specified in rules adopted by the director of mental health and
addiction services under division (N) of this section, and an interim
license shall expire ninety days after the date of issuance. A
license may be renewed in accordance with rules adopted by the
director under division (N) of this section. The renewal application
shall be submitted by the operator. When applying for renewal of a
license, the applicant shall pay to the department the renewal fee
specified in rules adopted under division (N) of this section. The
fee is nonrefundable.
(G)(1)
If the department finds any of the following with respect to a
residential facility, the department may issue an order suspending
the admission of residents to the facility, refuse to issue or renew
a license for the facility, or revoke the facility's license:
(a)
The facility is not in compliance with rules adopted by the director
pursuant to division (N) of this section;
(b)
Any facility operated by the applicant or licensee has been cited for
a pattern of serious noncompliance or repeated violations of statutes
or rules during the period of current or previous licenses;
(c)
The applicant or licensee submits false or misleading information as
part of a license application, renewal, or investigation.
(2)
Proceedings initiated to deny applications for full or probationary
licenses, to refuse to renew full or probationary licenses, or to
revoke full or probationary licenses are governed by Chapter 119. of
the Revised Code. If an order has been issued suspending the
admission of residents to the facility, the order remains in effect
during the pendency of those proceedings.
Proceedings
initiated to suspend the admission of residents to a facility are
governed by Chapter 119. of the Revised Code, except as provided in
division (H) of this section.
(3)
In a proceeding initiated to suspend the admission of residents to a
facility, to deny an application for a full or probationary license,
to refuse to renew a full or probationary license, or to revoke a
full or probationary license, the department may order the
suspension, denial, refusal, or revocation regardless of whether some
or all of the deficiencies that prompted the proceedings have been
corrected at the time of the hearing.
(4)
When the department issues an order suspending the admission of
residents to a facility, denies an application for a full or
probationary license, refuses to renew a full or probationary
license, or revokes a full or probationary license, the department
shall not grant an opportunity for submitting a plan of correction.
(H)(1)
If a suspension of admissions of residents to a facility is proposed
because the director has determined that the licensee has
demonstrated a pattern of serious noncompliance or that a violation
creates a substantial risk to the health and safety of residents, the
director may issue an order imposing the suspension of admissions
before providing an opportunity for an adjudication under Chapter
119. of the Revised Code. The director shall lift the order for the
suspension of admissions if the director determines that the
violation that formed the basis for the order has been corrected.
(2)
Appeals from proceedings initiated to order the suspension of
admissions to a facility shall be conducted in accordance with
Chapter 119. of the Revised Code, unless the order was issued before
providing an opportunity for an adjudication, in which case all of
the following apply:
(a)
The licensee may request a hearing not later than ten days after
being served in accordance with sections 119.05 and 119.07 of the
Revised Code.
(b)
If a timely request for a hearing that includes the licensee's
current address is made, the hearing shall commence not later than
thirty days after the department receives the request.
(c)
After commencing, the hearing shall continue uninterrupted, except
for Saturdays, Sundays, and legal holidays, unless other
interruptions are agreed to by the licensee and the director.
(d)
If the hearing is conducted by a hearing examiner, the hearing
examiner shall file a report and recommendations with the department
not later than ten days after the last of the following:
(i)
The close of the hearing;
(ii)
If a transcript of the proceedings is ordered, the hearing examiner
receives the transcript;
(iii)
If post-hearing briefs are timely filed, the hearing examiner
receives the briefs.
(e)
The hearing examiner shall send a written copy of the report and
recommendations, by certified mail, to the licensee, or the
licensee's attorney, if applicable, not later than five days after
the report is filed with the department.
(f)
Not later than five days after receiving the report and
recommendations, the licensee may file objections with the
department.
(g)
Not later than fifteen days after the hearing examiner files the
report and recommendations, the department shall issue an order
approving, modifying, or disapproving the report and recommendations.
(h)
Notwithstanding the pendency of the hearing, the department shall
lift the order for the suspension of admissions if the department
determines the violation that formed the basis for the order has been
corrected.
(I)
The department may issue an interim license to operate a residential
facility if both of the following conditions are met:
(1)
The department determines that the closing of or the need to remove
residents from another residential facility has created an emergency
situation requiring immediate removal of residents and an
insufficient number of licensed beds are available.
(2)
The residential facility applying for an interim license meets
standards established for interim licenses in rules adopted by the
director under division (N) of this section.
An
interim license shall be valid for ninety days and may be renewed by
the director no more than twice. Proceedings initiated to deny
applications for or to revoke interim licenses under this division
are not subject to Chapter 119. of the Revised Code.
(J)(1)
The department of mental health and addiction services may conduct an
inspection of a residential facility as follows:
(a)
Prior to issuance of a license for the facility;
(b)
Prior to renewal of the license;
(c)
To determine whether the facility has completed a plan of correction
required pursuant to division (J)(2) of this section and corrected
deficiencies to the satisfaction of the department and in compliance
with this section and rules adopted pursuant to it;
(d)
Upon complaint by any individual or agency;
(e)
At any time the director considers an inspection to be necessary in
order to determine whether the facility is in compliance with this
section and rules adopted pursuant to this section.
(2)
In conducting inspections the department may conduct an on-site
examination and evaluation of the residential facility and its
personnel, activities, and services. The department shall have access
to examine and copy all records, accounts, and any other documents
relating to the operation of the residential facility, including
records pertaining to residents, and shall have access to the
facility in order to conduct interviews with the operator, staff, and
residents. Following each inspection and review, the department shall
complete a report listing any deficiencies, and including, when
appropriate, a time table within which the operator shall correct the
deficiencies. The department may require the operator to submit a
plan of correction describing how the deficiencies will be corrected.
(K)
No person shall do any of the following:
(1)
Operate a residential facility unless the facility holds a valid
license;
(2)
Violate any of the conditions of licensure after having been granted
a license;
(3)
Interfere with a state or local official's inspection or
investigation of a residential facility;
(4)
Violate any of the provisions of this section or any rules adopted
pursuant to this section.
(L)
The following may enter a residential facility at any time:
(1)
Employees designated by the director of mental health and addiction
services;
(2)
Employees of an ADAMHS board under either of the following
circumstances:
(a)
When a resident of the facility is receiving services from a
community mental health services provider under contract with that
ADAMHS board or another ADAMHS board;
(b)
When authorized by section 340.05 of the Revised Code.
(3)
Employees of a community mental health services provider under either
of the following circumstances:
(a)
When the provider has a person receiving services residing in the
facility;
(b)
When the provider is acting as an agent of an ADAMHS board other than
the board with which it is under contract.
(4)
Representatives of the state long-term care ombudsman program when
the facility provides accommodations, supervision, and personal care
services for three to sixteen unrelated adults or to one or two
unrelated adults who are receiving payments under the residential
state supplement program.
The
persons specified in division (L) of this section shall be afforded
access to examine and copy all records, accounts, and any other
documents relating to the operation of the residential facility,
including records pertaining to residents.
(M)
Employees of the department of mental health and addiction services
may enter, for the purpose of investigation, any institution,
residence, facility, or other structure which has been reported to
the department as, or that the department has reasonable cause to
believe is, operating as a residential facility without a valid
license.
(N)
The director shall adopt and may amend and rescind rules pursuant to
Chapter 119. of the Revised Code governing the licensing and
operation of residential facilities. The rules shall establish all of
the following:
(1)
Minimum standards for the health, safety, adequacy, and cultural
competency of treatment of and services for persons in residential
facilities;
(2)
Procedures for the issuance, renewal, or revocation of the licenses
of residential facilities;
(3)
Procedures for conducting background investigations for prospective
or current operators, employees, volunteers, and other non-resident
occupants who may have direct access to facility residents;
(4)
The fee to be paid when applying for a new residential facility
license or renewing the license;
(5)
Procedures for the operator of a residential facility to follow when
notifying the ADAMHS board serving the county in which the facility
is located when the facility is serving residents with mental illness
or severe mental disability, including the circumstances under which
the operator is required to make such a notification;
(6)
Procedures for the issuance and termination of orders of suspension
of admission of residents to a residential facility;
(7)
Measures to be taken by residential facilities relative to residents'
medication;
(8)
Requirements relating to preparation of special diets;
(9)
The maximum number of residents who may be served in a residential
facility;
(10)
The rights of residents of residential facilities and procedures to
protect such rights;
(11)
Standards and procedures under which the director may waive the
requirements of any of the rules adopted.
(O)(1)
The department may withhold the source of any complaint reported as a
violation of this section when the department determines that
disclosure could be detrimental to the department's purposes or could
jeopardize the investigation. The department may disclose the source
of any complaint if the complainant agrees in writing to such
disclosure and shall disclose the source upon order by a court of
competent jurisdiction.
(2)
Any person who makes a complaint under division (O)(1) of this
section, or any person who participates in an administrative or
judicial proceeding resulting from such a complaint, is immune from
civil liability and is not subject to criminal prosecution, other
than for perjury, unless the person has acted in bad faith or with
malicious purpose.
(P)(1)
The director of mental health and addiction services may petition the
court of common pleas of the county in which a residential facility
is located for an order enjoining any person from operating a
residential facility without a license or from operating a licensed
facility when, in the director's judgment, there is a present danger
to the health or safety of any of the occupants of the facility. The
court shall have jurisdiction to grant such injunctive relief upon a
showing that the respondent named in the petition is operating a
facility without a license or there is a present danger to the health
or safety of any residents of the facility.
(2)
When the court grants injunctive relief in the case of a facility
operating without a license, the court shall issue, at a minimum, an
order enjoining the facility from admitting new residents to the
facility and an order requiring the facility to assist with the safe
and orderly relocation of the facility's residents.
(3)
If injunctive relief is granted against a facility for operating
without a license and the facility continues to operate without a
license, the director shall refer the case to the attorney general
for further action.
(Q)
The director may fine a person for violating division (K) of this
section. The fine shall be five hundred dollars for a first offense;
for each subsequent offense, the fine shall be one thousand dollars.
The director's actions in imposing a fine shall be taken in
accordance with Chapter 119. of the Revised Code.
Sec.
5120.07.
(A)
There is hereby created the ex-offender reentry coalition consisting
of the following twenty-one members or their designees:
(1)
The director of rehabilitation and correction;
(2)
The director of aging;
(3)
The director of mental health and addiction services;
(4)
The director of
housing
and
development;
(5)
The director of education and workforce;
(6)
The director of health;
(7)
The director of job and family services;
(8)
The director of developmental disabilities;
(9)
The director of public safety;
(10)
The director of youth services;
(11)
The chancellor of higher education;
(12)
A representative or member of the governor's staff;
(13)
The executive director of the opportunities for Ohioans with
disabilities agency;
(14)
The director of the department of commerce;
(15)
The executive director of a health care licensing board created under
Title XLVII of the Revised Code, as appointed by the chairperson of
the coalition;
(16)
The director of veterans services;
(17)
An ex-offender appointed by the director of rehabilitation and
correction;
(18)
Two members of the house of representatives appointed by the speaker
of the house of representatives, one of whom shall be the chairperson
of the standing committee in the house of representatives that
primarily addresses criminal justice matters and the other of whom
shall be a member of the minority party in the house of
representatives;
(19)
Two members of the senate appointed by the president of the senate,
one of whom shall be the chairperson of the standing committee in the
senate that primarily addresses criminal justice matters and the
other of whom shall be a member of the minority party in the senate.
(B)
The members of the coalition shall serve without compensation. The
director of rehabilitation and correction or the director's designee
shall be the chairperson of the coalition.
(C)
In consultation with persons interested and involved in the reentry
of ex-offenders into the community, the members of the coalition
shall meet periodically for the purpose of formulating, discussing,
and developing policies and practices that facilitate the expansion
and improvement of reentry services provided by state and local
agencies in the collaborative efforts of those agencies to
reintegrate offenders into society while simultaneously maintaining
public safety and reducing recidivism in this state. Not later than
one year after April 7, 2009, and on or before the same date of each
year thereafter, the coalition shall submit to the speaker of the
house of representatives and the president of the senate a report,
including recommendations for legislative action, the activities of
the coalition, and the barriers affecting the successful reentry of
ex-offenders into the community. The report shall analyze the effects
of those barriers on ex-offenders and on their children and other
family members in various areas, including but not limited to, the
following:
(1)
Admission to public and other housing;
(2)
Child support obligations and procedures;
(3)
Parental incarceration and family reunification;
(4)
Social security benefits, veterans' benefits, food stamps, and other
forms of public assistance;
(5)
Employment;
(6)
Education programs and financial assistance;
(7)
Substance abuse and sex offender treatment programs and financial
assistance and mental health services and financial assistance;
(8)
Civic and political participation;
(9)
Other collateral consequences under the Revised Code or the Ohio
administrative code law that may result from a criminal conviction.
(D)(1)
The report shall also include the following information:
(a)
Identification of state appropriations for reentry programs;
(b)
Identification of other funding sources for reentry programs that are
not funded by the state.
(2)
The coalition shall gather information about reentry programs in a
repository maintained and made available by the coalition. Where
available, the information shall include the following:
(a)
The amount of funding received;
(b)
The number of program participants;
(c)
The composition of the program, including program goals, methods for
measuring success, and program success rate;
(d)
The type of post-program tracking that is utilized;
(e)
Information about employment rates and recidivism rates of
ex-offenders.
Sec.
5126.071.
(A)
As used in this section, "minority business enterprise" has
the meaning given in division (E)(1) of section 122.71 of the Revised
Code.
(B)
Any minority business enterprise that desires to bid on a contract
under division (C) or (D) of this section shall first apply to the
department of
housing
and
development
for certification as a minority business enterprise. The director of
housing
and
development
shall approve the application of any minority business enterprise
that complies with the rules adopted under section 122.71 of the
Revised Code. The director shall prepare and maintain a list of
minority business enterprises certified under this section.
(C)
From the contracts to be awarded for the purchases of equipment,
materials, supplies, insurance, and nonprogram services, other than
contracts entered into and exempt under sections 307.86 and 5126.05
of the Revised Code, each county board of developmental disabilities
shall select a number of contracts with an aggregate value of
approximately fifteen per cent of the total estimated value of such
contracts to be awarded in the current calendar year. The board shall
set aside the contracts so selected for bidding by minority business
enterprises only. The bidding procedures for such contracts shall be
the same as for all other contracts awarded under section 307.86 of
the Revised Code, except that only minority business enterprises
certified and listed under division (B) of this section shall be
qualified to submit bids. Contracts set aside and awarded under this
section shall not include contracts for the purchase of services such
as direct and ancillary services, service and support administration,
residential services, and family support services.
(D)
To the extent that a board is authorized to enter into contracts for
construction which are not exempt from the competitive bidding
requirements of section 307.86 of the Revised Code, the board shall
set aside a number of contracts the aggregate value of which equals
approximately five per cent of the aggregate value of construction
contracts for the current calendar year for bidding by minority
business enterprises only. The bidding procedures for the contracts
set aside for minority business enterprises shall be the same as for
all other contracts awarded by the board, except that only minority
business enterprises certified and listed under division (B) of this
section shall be qualified to submit bids.
Any
contractor awarded a construction contract pursuant to this section
shall make every effort to ensure that certified minority business
subcontractors and materials suppliers participate in the contract.
In the case of contracts specified in this division, the total value
of subcontracts awarded to and materials and services purchased from
minority businesses shall be at least ten per cent of the total value
of the contract, wherever possible and whenever the contractor awards
subcontracts or purchases materials or services.
(E)
In the case of contracts set aside under divisions (C) and (D) of
this section, if no bid is submitted by a minority business
enterprise, the contract shall be awarded according to normal bidding
procedures. The board shall from time to time set aside such
additional contracts as are necessary to replace those contracts
previously set aside on which no minority business enterprise bid.
(F)
This section does not preclude any minority business enterprise from
bidding on any other contract not specifically set aside for minority
business enterprises.
(G)
Within ninety days after the beginning of each calendar year, each
county board of developmental disabilities shall file a report with
the department of developmental disabilities that shows for that
calendar year the name of each minority business enterprise with
which the board entered into a contract, the value and type of each
such contract, the total value of contracts awarded under divisions
(C) and (D) of this section, the total value of contracts awarded for
the purchases of equipment, materials, supplies, or services, other
than contracts entered into under the exemptions of sections 307.86
and 5126.05 of the Revised Code, and the total value of contracts
entered into for construction.
(H)
Any person who intentionally misrepresents that person as owning,
controlling, operating, or participating in a minority business
enterprise for the purpose of obtaining contracts or any other
benefits under this section shall be guilty of theft by deception as
provided for in section 2913.02 of the Revised Code.
Sec.
5126.18.
(A)
As used in this section:
(1)
"Taxable value" means the taxable value of a county
certified under division (B) of this section.
(2)
"Per-mill yield" means the quotient obtained by dividing
the taxable value of a county by one thousand.
(3)
"Population" of a county means that shown by the federal
census for a census year or, for a noncensus year, the population as
estimated by the department of
housing
and
development.
(4)
"Six-year moving average" means the average of the per-mill
yields of a county for the most recent six years.
(5)
"Yield per person" means the quotient obtained by dividing
the six-year moving average of a county by the population of that
county.
(6)
"Tax equity payments" means payments to county boards of
developmental disabilities under this section or a prior version of
this section from money appropriated by the general assembly to the
department of developmental disabilities for that purpose.
(7)
"Eligible county" means a county determined under division
(C) of this section to be eligible for tax equity payments for the
two-year period for which that determination is made.
(8)
"Threshold county" means the county with the lowest yield
per person that is determined not to be eligible to receive tax
equity payments.
(B)
At the request of the director of developmental disabilities, the tax
commissioner shall certify to the director the taxable value of
property on each county's most recent tax list of real and public
utility property. The director may request any other tax information
necessary for the purposes of this section.
(C)
Beginning in 2011, on or before the thirty-first day of May of that
year and of every second year thereafter, the director of
developmental disabilities shall determine whether a county is
eligible to receive tax equity payments for the ensuing two fiscal
years as follows:
(1)
The director shall determine the six-year moving average, population,
and yield per person of each county in the state, based on the most
recent information available.
(2)
The director shall calculate a tax equity funding threshold by adding
the population of the county with the lowest yield per person and the
populations of individual counties in order from lowest yield per
person to highest yield per person until the addition of the
population of another county would increase the aggregate sum to over
thirty per cent of the total state population. A county is eligible
to receive tax equity payments for the two-year period if its
population is included in the calculation of the threshold and the
addition of its population does not increase such sum to over thirty
per cent of the total state population.
(D)(1)
Except as provided in divisions (D)(2) and (3) of this section,
beginning in fiscal year 2012 and for each fiscal year thereafter,
the director shall make tax equity payments to each eligible county
equal to the population of the county multiplied by the difference
between the yield per person of the threshold county and the yield
per person of the eligible county. For purposes of this division, the
population and yield per person of a county equal the population and
yield per person most recently determined for that county under
division (C)(1) of this section. The payments shall be made in
quarterly installments of equal amounts not later than the thirtieth
day of September, the thirty-first day of December, the thirty-first
day of March, and the thirtieth day of June of each fiscal year.
(2)
In fiscal year 2012, if the amount determined under division (D)(1)
of this section for an eligible county is at least twenty thousand
dollars greater than or twenty thousand dollars less than the amount
of tax equity payments the county received in fiscal year 2011, the
county's tax equity payments for fiscal years 2012 through 2014 shall
equal the following:
(a)
For fiscal year 2012, one-fourth of the amount calculated for the
eligible county under division (D)(1) of this section plus
three-fourths of the amount of tax equity payments the county
received in fiscal year 2011;
(b)
For fiscal year 2013, one-half of the amount calculated for the
eligible county under division (D)(1) of this section plus one-half
of the amount of tax equity payments the county received in fiscal
year 2011;
(c)
For fiscal year 2014, three-fourths of the amount calculated for the
eligible county under division (D)(1) of this section plus one-fourth
of the amount of tax equity payments the county received in fiscal
year 2011.
(3)
In any fiscal year, if the total amount of tax equity payments for
all eligible counties as determined under divisions (D)(1) and (2) of
this section is greater than the amount appropriated to the
department of developmental disabilities for the purpose of making
such payments in that fiscal year, the director shall reduce the
payments to each eligible county board in equal proportion. If the
total amount of tax equity payments as determined under that division
is less than the amount appropriated to the department for that
purpose, the director shall determine how to allocate the excess
money after consultation with the Ohio association of county boards
serving people with developmental disabilities.
(4)
Tax equity payments shall be paid only to an eligible county board of
developmental disabilities and not to a regional council established
under section 5126.13 of the Revised Code or any other entity.
(E)(1)
Except as provided in division (E)(2) of this section, a county board
of developmental disabilities shall use tax equity payments solely to
pay the nonfederal share of medicaid expenditures it is required to
pay under sections 5126.059 and 5126.0510 of the Revised Code. Tax
equity payments shall not be used to pay any salary or other
compensation to county board personnel.
(2)
Upon the written request of a county board, the director of
developmental disabilities may authorize a county board to use tax
equity payments for infrastructure improvements necessary to support
medicaid waiver administration.
(3)
The director may audit any county board receiving tax equity payments
to ensure appropriate use of the payments in accordance with this
section. If the director determines that a county board is using
payments inappropriately, the director shall notify the county board
in writing of the determination. Within thirty days after receiving
the director's notification, the county board shall submit a written
plan of correction to the director. The director may accept or reject
the plan. If the director rejects the plan, the director may require
the county board to repay all or a portion of the amount of tax
equity payments used inappropriately. The director shall distribute
any tax equity payments returned under this division to other
eligible county boards in accordance with a plan developed by the
director after consultation with the Ohio association of county
boards serving people with developmental disabilities.
Sec.
5501.031.
The
department of transportation shall:
(A)
Consider energy conservation as an integral factor along with
economics, engineering, safety, and the environment in the planning,
design, and utilization of transportation facilities;
(B)
Reevaluate existing plans for highways and other transportation modes
and require regional transportation studies and local planning
agencies operating under state coordination or with state funds to
cooperate in such reevaluation. Such reevaluation shall consider
shifts to energy conservation modes and improvement in modal energy
efficiencies, and shall include both technological alternatives and
administrative or management strategies. Short-term conservation
measures must be adaptable to long-term conservation requirements to
include permanent reductions in gasoline usage and revitalization of
railroads.
(C)
Take all necessary steps to increase the level of awareness of
transportation professions and related government sectors of those
techniques that are immediately available to reduce petroleum
consumption in improving operation and maintenance of transportation
facilities;
(D)
Review construction specifications and design standards for highway
construction and maintenance, with a view to pursuing the elimination
of those found to be unnecessary and wasteful of energy;
(E)
Submit recommendations to the department of
housing
and
development
and to the general assembly, designed to reduce the energy intensive
nature of the existing transportation system, control the growth of
gasoline demand, and support other efforts to conserve energy;
(F)
In cooperation with the department of
housing
and
development,
encourage and promote the establishment of carpool and vanpool
programs including preferential parking for vehicles used in carpools
or vanpools. The department of transportation shall also study the
feasibility of preferential traffic control for public transportation
vehicles and variable working hours as additional conservation
measures.
The
department shall undertake to utilize to the fullest extent funds
made available under federal or state programs for the development of
park-and-ride lots to serve carpools and vanpools and encourage the
use of public transportation facilities. Potential locations and
funds for park-and-ride lots shall be identified in at least one
location in each standard metropolitan statistical area in the state.
These locations shall be reported to the department of
housing
and
development.
Sec.
5531.08.
(A)
In order to expedite a highway project involving the expenditure of
federal and state funds and to utilize all privileges provided by the
"Intermodal Surface Transportation Efficiency Act of 1991,"
105 Stat. 1914, 49 U.S.C.A. 101, the director of transportation may
designate a project team for the purposes of certifying design review
and performing field and office inspections and cost estimates, on
behalf of the federal highway administration.
(B)(1)
Upon a written determination by the director that it would be in the
best interests of the traveling public, the director, upon the
written request of a county, township, or municipal corporation, may
utilize moneys in the highway operating fund created by section
5735.051 of the Revised Code to pay that portion of the construction
cost of a highway project which the county, township, or municipal
corporation normally would be required to pay.
(2)
The director shall not utilize moneys in the highway operating fund
for a highway project in the manner described in division (B)(1) of
this section unless all of the following apply:
(a)
The preliminary engineering design of the project is complete, all
necessary rights-of-way have been obtained, and all federal, state,
and local environmental studies and permits have been performed or
obtained;
(b)
The director of transportation has submitted the proposed project to
the director of
housing
and
development
for an evaluation of the potential economic benefit to the area. The
county, township, or municipal corporation certifies to the director
of
housing
and
development
that the project will create not less than five permanent living wage
jobs. This requirement shall be fulfilled during the three-year
period following the completion date of the project, and the county,
township, or municipal corporation may define the geographic area
within which the jobs will be created.
(c)
The quotient resulting from the division of the total amount of
moneys utilized to cover the portion of the construction cost of the
highway project that a county, township, or municipal corporation
would normally be required to pay, divided by the number of permanent
living wage jobs certified to the director of
housing
and
development
by the county, township, or municipal corporation pursuant to
division (B)(2)(b) of this section is less than or equal to ten
thousand dollars.
(C)
Upon a written determination by the director of transportation that
it would be in the best interests of the traveling public, the
director, upon the written request of a county, township, or
municipal corporation, may declare a waiver of that portion of the
cost of a highway project which the county, township, or municipal
corporation normally would be required to pay.
(D)
The director of
housing
and
development
shall do all of the following:
(1)
Review all requests submitted by a county, township, or municipal
corporation to the director of transportation pursuant to division
(B) of this section for the expenditure of moneys from the highway
operating fund;
(2)
Submit findings and recommendations to the director of transportation
upon completion of the review process;
(3)
Monitor the results of a highway project for which moneys in the
highway operating fund are utilized in order to ascertain whether the
number of permanent living wage jobs certified to the director of
transportation pursuant to division (B)(2)(b) of this section
actually are created as a result of the highway project within the
three-year period following the completion of the project, and submit
reports relating to this subject to the director as necessary.
(E)
The director of transportation may award eligible federal funds or
state general revenue funds to local units of government, including
regional transit authorities providing public transportation service
and metropolitan planning organizations. These funds may be used for
such purposes as alleviating traffic congestion or improving air
quality in nonattainment areas of the state as defined by the "Clean
Air Act of 1990," 104 Stat. 2399, 42 U.S.C.A. 7401. The funds
also may be used to acquire or construct park-and-ride facilities, to
purchase traffic devices to improve vehicular flow, and for other
travel demand management activities that meet the mandates of the
Clean Air Act in nonattainment areas of the state.
(F)
As used in this section, "living wage job" means an
employment position paying an annual average gross wage amount per
full-time person of not less than twenty thousand dollars per year.
Sec.
5703.0510.
(A)
Notwithstanding any other provision of the Revised Code that requires
a taxpayer to provide a tax credit certificate to the tax
commissioner upon the commissioner's request, any person claiming a
credit against a tax or fee administered by the commissioner shall
provide a copy of any accompanying certificate issued by the director
of
housing
and
development
services
or
by another state agency, if applicable, demonstrating the person's
eligibility for the credit claimed.
(B)
If the commissioner prescribes a form for the purpose of tracking the
credits claimed by a person against any tax or fee administered by
the commissioner, the person shall provide the completed form and a
copy of any certificate described in division (A) of this section on
or before the due date of the return, report, or schedule for the tax
or fee against which the credit is claimed.
(C)
If a person fails to provide a certificate or form as required under
this section, the commissioner shall deny the credit claimed by the
person until such certificate or form is provided to the
commissioner. Any amount denied under this section may be assessed in
the same manner as the underlying tax or fee.
Sec.
5709.12.
(A)
As used in this section, "independent living facilities"
means any residential housing facilities and related property that
are not a nursing home, residential care facility, or residential
facility as defined in division (A) of section 5701.13 of the Revised
Code.
(B)
Lands, houses, and other buildings belonging to a county, township,
or municipal corporation and used exclusively for the accommodation
or support of the poor, or leased to the state or any political
subdivision for public purposes shall be exempt from taxation. Real
and tangible personal property belonging to institutions that is used
exclusively for charitable purposes shall be exempt from taxation,
including real property belonging to an institution that is a
nonprofit corporation that receives a grant under the Thomas Alva
Edison grant program authorized by division (C) of section 122.33 of
the Revised Code at any time during the tax year and being held for
leasing or resale to others. If, at any time during a tax year for
which such property is exempted from taxation, the corporation ceases
to qualify for such a grant, the director of
housing
and
development
shall notify the tax commissioner, and the tax commissioner shall
cause the property to be restored to the tax list beginning with the
following tax year. All property owned and used by a nonprofit
organization exclusively for a home for the aged, as defined in
section 5701.13 of the Revised Code, also shall be exempt from
taxation.
(C)(1)
If a home for the aged described in division (B)(1) of section
5701.13 of the Revised Code is operated in conjunction with or at the
same site as independent living facilities, the exemption granted in
division (B) of this section shall include kitchen, dining room,
clinic, entry ways, maintenance and storage areas, and land necessary
for access commonly used by both residents of the home for the aged
and residents of the independent living facilities. Other facilities
commonly used by both residents of the home for the aged and
residents of independent living units shall be exempt from taxation
only if the other facilities are used primarily by the residents of
the home for the aged. Vacant land currently unused by the home, and
independent living facilities and the lands connected with them are
not exempt from taxation. Except as provided in division (A)(1) of
section 5709.121 of the Revised Code, property of a home leased for
nonresidential purposes is not exempt from taxation.
(2)
Independent living facilities are exempt from taxation if they are
operated in conjunction with or at the same site as a home for the
aged described in division (B)(2) of section 5701.13 of the Revised
Code; operated by a corporation, association, or trust described in
division (B)(1)(b) of that section; operated exclusively for the
benefit of members of the corporation, association, or trust who are
retired, aged, or infirm; and provided to those members without
charge in consideration of their service, without compensation, to a
charitable, religious, fraternal, or educational institution. For the
purposes of division (C)(2) of this section, "compensation"
does not include furnishing room and board, clothing, health care, or
other necessities, or stipends or other de minimis payments to defray
the cost thereof.
(D)(1)
A private corporation established under federal law, as defined in 36
U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629, as amended, the
objects of which include encouraging the advancement of science
generally, or of a particular branch of science, the promotion of
scientific research, the improvement of the qualifications and
usefulness of scientists, or the increase and diffusion of scientific
knowledge is conclusively presumed to be a charitable or educational
institution. A private corporation established as a nonprofit
corporation under the laws of a state that is exempt from federal
income taxation under section 501(c)(3) of the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C.A. 1, as amended, and that has as
its principal purpose one or more of the foregoing objects also is
conclusively presumed to be a charitable or educational institution.
The
fact that an organization described in this division operates in a
manner that results in an excess of revenues over expenses shall not
be used to deny the exemption granted by this section, provided such
excess is used, or is held for use, for exempt purposes or to
establish a reserve against future contingencies; and, provided
further, that such excess may not be distributed to individual
persons or to entities that would not be entitled to the tax
exemptions provided by this chapter. Nor shall the fact that any
scientific information diffused by the organization is of particular
interest or benefit to any of its individual members be used to deny
the exemption granted by this section, provided that such scientific
information is available to the public for purchase or otherwise.
(2)
Division (D)(2) of this section does not apply to real property
exempted from taxation under this section and division (A)(3) of
section 5709.121 of the Revised Code and belonging to a nonprofit
corporation described in division (D)(1) of this section that has
received a grant under the Thomas Alva Edison grant program
authorized by division (C) of section 122.33 of the Revised Code
during any of the tax years the property was exempted from taxation.
When
a private corporation described in division (D)(1) of this section
sells all or any portion of a tract, lot, or parcel of real estate
that has been exempt from taxation under this section and section
5709.121 of the Revised Code, the portion sold shall be restored to
the tax list for the year following the year of the sale and, except
in connection with a sale and transfer of such a tract, lot, or
parcel to a county land reutilization corporation organized under
Chapter 1724. of the Revised Code, a charge shall be levied against
the sold property in an amount equal to the tax savings on such
property during the four tax years preceding the year the property is
placed on the tax list. The tax savings equals the amount of the
additional taxes that would have been levied if such property had not
been exempt from taxation.
The
charge constitutes a lien of the state upon such property as of the
first day of January of the tax year in which the charge is levied
and continues until discharged as provided by law. The charge may
also be remitted for all or any portion of such property that the tax
commissioner determines is entitled to exemption from real property
taxation for the year such property is restored to the tax list under
any provision of the Revised Code, other than sections 725.02,
1728.10, 3735.67, 5709.40, 5709.41, 5709.45, 5709.62, 5709.63,
5709.71, 5709.73, 5709.78, and 5709.84, upon an application for
exemption covering the year such property is restored to the tax list
filed under section 5715.27 of the Revised Code.
(E)(1)
Real property held by an organization organized and operated
exclusively for charitable purposes as described under section
501(c)(3) of the Internal Revenue Code and exempt from federal
taxation under section 501(a) of the Internal Revenue Code, 26
U.S.C.A. 501(a) and (c)(3), as amended, for the purpose of
constructing or rehabilitating residences for eventual transfer to
qualified low-income families through sale, lease, or land
installment contract, shall be exempt from taxation.
The
exemption shall commence on the day title to the property is
transferred to the organization and shall continue to the end of the
tax year in which the organization transfers title to the property to
a qualified low-income family. In no case shall the exemption extend
beyond the second succeeding tax year following the year in which the
title was transferred to the organization. If the title is
transferred to the organization and from the organization to a
qualified low-income family in the same tax year, the exemption shall
continue to the end of that tax year. The proportionate amount of
taxes that are a lien but not yet determined, assessed, and levied
for the tax year in which title is transferred to the organization
shall be remitted by the county auditor for each day of the year that
title is held by the organization.
Upon
transferring the title to another person, the organization shall file
with the county auditor an affidavit affirming that the title was
transferred to a qualified low-income family or that the title was
not transferred to a qualified low-income family, as the case may be;
if the title was transferred to a qualified low-income family, the
affidavit shall identify the transferee by name. If the organization
transfers title to the property to anyone other than a qualified
low-income family, the exemption, if it has not previously expired,
shall terminate, and the property shall be restored to the tax list
for the year following the year of the transfer and a charge shall be
levied against the property in an amount equal to the amount of
additional taxes that would have been levied if such property had not
been exempt from taxation. The charge constitutes a lien of the state
upon such property as of the first day of January of the tax year in
which the charge is levied and continues until discharged as provided
by law.
The
application for exemption shall be filed as otherwise required under
section 5715.27 of the Revised Code, except that the organization
holding the property shall file with its application documentation
substantiating its status as an organization organized and operated
exclusively for charitable purposes under section 501(c)(3) of the
Internal Revenue Code and its qualification for exemption from
federal taxation under section 501(a) of the Internal Revenue Code,
and affirming its intention to construct or rehabilitate the property
for the eventual transfer to qualified low-income families.
As
used in this division, "qualified low-income family" means
a family whose income does not exceed two hundred per cent of the
official federal poverty guidelines as revised annually in accordance
with section 673(2) of the "Omnibus Budget Reconciliation Act of
1981," 95 Stat. 511, 42 U.S.C.A. 9902, as amended, for a family
size equal to the size of the family whose income is being
determined.
(2)
Real property constituting a retail store, including the land on
which the retail store is located, that is owned and operated by an
organization described in division (E)(1) of this section shall be
exempt from taxation if the retail store sells primarily donated
items suitable for residential housing purposes and if the proceeds
of such sales are used solely for the purposes of the organization.
(F)(1)
Real property that is acquired and held by a county land
reutilization corporation organized under Chapter 1724. of the
Revised Code and that is not exempt from taxation under Chapter 5722.
of the Revised Code shall be deemed real property used for a public
purpose and shall be exempt from taxation until sold or transferred
by the corporation. Notwithstanding section 5715.27 of the Revised
Code, a county land reutilization corporation is not required to
apply to any county or state agency in order to qualify for the
exemption.
(2)
Real property that is acquired and held by an electing subdivision
other than a county land reutilization corporation on or after April
9, 2009, for the public purpose of implementing an effective land
reutilization program or for a related public purpose, and that is
not exempt from taxation under Chapter 5722. of the Revised Code,
shall be exempt from taxation until sold or transferred by the
electing subdivision. Notwithstanding section 5715.27 of the Revised
Code, an electing subdivision is not required to apply to any county
or state agency in order to qualify for an exemption with respect to
property acquired or held for such purposes on or after such date,
regardless of how the electing subdivision acquires the property.
As
used in this section, "electing subdivision" and "land
reutilization program" have the same meanings as in section
5722.01 of the Revised Code, and "county land reutilization
corporation" means a county land reutilization corporation
organized under Chapter 1724. of the Revised Code and any subsidiary
wholly owned by such a county land reutilization corporation that is
identified as "a wholly owned subsidiary of a county land
reutilization corporation" in the deed of conveyance
transferring title to the subsidiary.
In
lieu of the application for exemption otherwise required to be filed
as required under section 5715.27 of the Revised Code, a county land
reutilization corporation holding the property shall, upon the
request of any county or state agency, submit its articles of
incorporation substantiating its status as a county land
reutilization corporation.
(G)
Real property that is owned by an organization described under
section 501(c)(3) of the Internal Revenue Code and exempt from
federal income taxation under section 501(a) of the Internal Revenue
Code and that is used by that organization exclusively for receiving,
processing, or distributing human blood, tissues, eyes, or organs or
for research and development thereof shall be exempt from taxation.
(H)
Real property that is owned by an organization described under
section 501(c)(3) of the Internal Revenue Code and exempt from
federal income taxation under section 501(a) of the Internal Revenue
Code and that received a loan from the federal small business
administration as a participating intermediary in the federal
microloan program under 15 U.S.C. 636(m) shall be exempt from
taxation if the property is used by that organization primarily for
small business lending, economic development, job training,
entrepreneur education, or associated administrative purposes as such
a participating intermediary.
Sec.
5709.211.
(A)
Before issuing an exempt facility certificate pursuant to section
5709.21 of the Revised Code, the tax commissioner shall provide a
copy of a properly completed application to, and obtain the opinion
of, one of the following persons:
(1)
The director of environmental protection in the case of an exempt
facility described in division (B) or (F) of section 5709.20 of the
Revised Code or, when applicable, division (L) of that section;
(2)
The director of natural resources in the case of an exempt facility
described in division (L) of section 5709.20 of the Revised Code,
when applicable;
(3)
The director of
housing
and
development
in the case of an application for an exempt facility described in
division (D), (I), or (K) of section 5709.20 of the Revised Code.
The
opinion shall provide the commissioner with a recommendation of
whether the property is primarily designed, constructed, installed,
and used as an exempt facility. The applicant shall provide
additional information upon request by the tax commissioner, the
director of environmental protection, the director of natural
resources, or the director of
housing
and
development,
and allow them to inspect the property listed in the application for
the purposes of sections 5709.20 to 5709.27 of the Revised Code. The
tax commissioner shall provide to the applicant a copy of the opinion
issued by the director of environmental protection, director of
natural resources, or director of the department of
housing
and
development,
as applicable.
(B)
The opinions of the director of the environmental protection agency,
the director of natural resources, and the director of
housing
and
development
under division (A) of this section or division (C)(4) of section
5709.22 of the Revised Code are not final actions or orders subject
to appeal.
Sec.
5709.212.
(A)
With every application for an exempt facility certificate filed
pursuant to section 5709.21 of the Revised Code, the applicant shall
pay a fee equal to one-half of one per cent of the total exempt
facility project cost, not to exceed two thousand dollars. If the
director of environmental protection is required to provide the
opinion for an application, the fee shall be credited to the
non-Title V clean air fund created in section 3704.035 of the Revised
Code for use in administering section 5709.211 of the Revised Code,
unless the application is for an industrial water pollution control
facility. In such a case, the fee shall be credited to the surface
water protection fund created in section 6111.038 of the Revised Code
for use in administering section 5709.211 of the Revised Code. If the
director of
housing
and
development
or director of natural resources is required to provide the opinion
for an application, the fee for each exempt facility application
shall be credited to the exempt facility inspection fund, which is
hereby created in the state treasury, for appropriation to the
department
of housing and
development
services
agency
or
department of natural resources, as applicable, for use in
administering section 5709.211 of the Revised Code.
An
applicant is not entitled to any tax exemption under section 5709.25
of the Revised Code until the fee required by this section is paid.
The fee required by this section is not refundable, and is due with
the application for an exempt facility certificate even if an exempt
facility certificate ultimately is not issued or is withdrawn. Any
application submitted without payment of the fee shall be deemed
incomplete until the fee is paid.
(B)
The application fee imposed under division (A) of this section for a
jointly owned facility shall be equal to one-half of one per cent of
the total exempt facility project cost, not to exceed two thousand
dollars for each facility that is the subject of the application.
Sec.
5709.22.
(A)
After receiving an opinion from the director of environmental
protection, the director of natural resources, or the director of
housing
and
development,
the tax commissioner shall promptly ascertain if an application filed
under section 5709.21 of the Revised Code shall be allowed or
disallowed in whole or in part. The commissioner shall give written
notice of the proposed finding to the applicant and the county
auditor of the county in which the facility described in the
application is located. Within sixty days after sending written
notice of the proposed finding, the applicant or the county auditor
may file a request for reconsideration, in writing, to the
commissioner and may request that the commissioner conduct a hearing
on the application. If no request for reconsideration is filed, the
commissioner's proposed findings shall be final and, if applicable,
the commissioner shall issue an exempt facility certificate, which
shall not be subject to appeal pursuant to section 5717.02 of the
Revised Code.
(B)
If a reconsideration of the tax commissioner's proposed finding is
requested by the applicant or the county auditor, the commissioner
shall notify the applicant and the auditor of the time and place of
the hearing, which the commissioner may continue from time to time as
the commissioner finds necessary. The commissioner also shall notify
the environmental protection agency, department of natural resources,
or department of
housing
and
development,
as applicable, of the hearing. The environmental protection agency,
department of natural resources, or department of
housing
and
development
shall participate in the hearing if requested in writing by the
commissioner, the applicant, or the county auditor. After conducting
the hearing, the commissioner shall issue a final determination, with
a copy of it served on the applicant and applicable county auditors
in the manner prescribed by section 5703.37 of the Revised Code. The
final determination is subject to appeal pursuant to section 5717.02
of the Revised Code. Once all appeals are exhausted, the commissioner
shall issue, if applicable, the exempt facility certificate based on
the outcome of the appeal.
(C)
The tax commissioner, on the commissioner's own initiative or on
complaint by the county auditor of any county in which property to
which the exempt facility certificate relates is located, shall
revoke the certificate, or modify it by restricting its operation, if
it appears to the commissioner that any of the following has
occurred:
(1)
The certificate was obtained by fraud or misrepresentation;
(2)
The holder of the certificate has failed substantially to proceed
with the construction, reconstruction, installation, or acquisition
of an exempt facility;
(3)
The property to which the certificate relates has ceased to be used
as an exempt facility;
(4)
The tax commissioner issued the certificate in error. As used in this
section, "error" means any of the following:
(a)
A clerical or mathematical mistake;
(b)
When the commissioner agrees with an opinion from the director of
environmental protection, the director of natural resources, or the
director of
housing
and
development
that a certificate should not have been issued;
(c)
When the tax commissioner determines that the issuance of the
certificate may have been improper as the result of a final
adjudication by the board of tax appeals, or by a court with
jurisdiction on appeal from that board, that is adverse to the
original exempt status of the facility, regardless of whether the
holder of the certificate was a party to such adjudication.
(D)
If the revocation or modification of a certificate under division
(C)(4) of this section is an action found to be frivolous for the
purposes of section 5703.54 of the Revised Code the certificate
holder may claim damages as provided under division (B) of that
section.
(E)
Upon service of notice to the holder of an exempt facility
certificate, in the manner provided in section 5703.37 of the Revised
Code, of the tax commissioner's revocation or modification of the
certificate under division (C) of this section, the certificate shall
cease to be in force or shall remain in force only as modified, as
the case may require. The notice is subject to appeal under section
5717.02 of the Revised Code. Once all appeals are exhausted, the
commissioner shall issue a modified certificate, if applicable, and
the holder of the certificate shall be allowed to claim a refund
within one hundred eighty days, notwithstanding any other time
limitation provided by law of the taxes paid as a result of the
certificate being revoked or modified.
Sec.
5709.40.
(A)
As used in this section:
(1)
"Blighted area" and "impacted city" have the same
meanings as in section 1728.01 of the Revised Code.
(2)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined under section 1.14 of the
Revised Code.
(3)
"Housing renovation" means a project carried out for
residential purposes.
(4)
"Improvement" means the increase in the assessed value of
any real property that would first appear on the tax list and
duplicate of real and public utility property after the effective
date of an ordinance adopted under this section were it not for the
exemption granted by that ordinance.
(5)
"Incentive district" means an area not more than three
hundred acres in size enclosed by a continuous boundary in which a
project is being, or will be, undertaken and having one or more of
the following distress characteristics:
(a)
At least fifty-one per cent of the residents of the district have
incomes of less than eighty per cent of the median income of
residents of the political subdivision in which the district is
located, as determined in the same manner specified under section
119(b) of the "Housing and Community Development Act of 1974,"
88 Stat. 633, 42 U.S.C. 5318, as amended;
(b)
The average rate of unemployment in the district during the most
recent twelve-month period for which data are available is equal to
at least one hundred fifty per cent of the average rate of
unemployment for this state for the same period.
(c)
At least twenty per cent of the people residing in the district live
at or below the poverty level as defined in the federal Housing and
Community Development Act of 1974, 42 U.S.C. 5301, as amended, and
regulations adopted pursuant to that act.
(d)
The district is a blighted area.
(e)
The district is in a situational distress area as designated by the
director of
housing
and
development
under division (F) of section 122.23 of the Revised Code.
(f)
As certified by the engineer for the political subdivision, the
public infrastructure serving the district is inadequate to meet the
development needs of the district as evidenced by a written economic
development plan or urban renewal plan for the district that has been
adopted by the legislative authority of the subdivision.
(g)
The district is comprised entirely of unimproved land that is located
in a distressed area as defined in section 122.23 of the Revised
Code.
(6)
"Overlay" means an area of not more than three hundred
acres that is a square, or that is a rectangle having two longer
sides that are not more than twice the length of the two shorter
sides, that the legislative authority of a municipal corporation
delineates on a map of a proposed incentive district.
(7)
"Project" means development activities undertaken on one or
more parcels, including, but not limited to, construction, expansion,
and alteration of buildings or structures, demolition, remediation,
and site development, and any building or structure that results from
those activities.
(8)
"Public infrastructure improvement" includes, but is not
limited to, public roads and highways; water and sewer lines; the
continued maintenance of those public roads and highways and water
and sewer lines; environmental remediation; land acquisition,
including acquisition in aid of industry, commerce, distribution, or
research; demolition, including demolition on private property when
determined to be necessary for economic development purposes;
stormwater and flood remediation projects, including such projects on
private property when determined to be necessary for public health,
safety, and welfare; the provision of gas, electric, and
communications service facilities, including the provision of gas or
electric service facilities owned by nongovernmental entities when
such improvements are determined to be necessary for economic
development purposes; the enhancement of public waterways through
improvements that allow for greater public access; and off-street
parking facilities, including those in which all or a portion of the
parking spaces are reserved for specific uses when determined to be
necessary for economic development purposes.
(9)
"Nonperforming parcel" means a parcel to which all of the
following apply:
(a)
The parcel is exempted from taxation under division (B) of this
section or has been included in a district created under division (C)
of this section.
(b)
The parcel's owner is required to make payments in lieu of taxes in
accordance with section 5709.42 of the Revised Code.
(c)
No such payments have been remitted to the county treasurer since the
inception of the exemption or district.
(B)
The legislative authority of a municipal corporation, by ordinance,
may declare improvements to certain parcels of real property located
in the municipal corporation to be a public purpose. Improvements
with respect to a parcel that is used or to be used for residential
purposes may be declared a public purpose under this division only if
the parcel is located in a blighted area of an impacted city. For
this purpose, "parcel that is used or to be used for residential
purposes" means a parcel that, as improved, is used or to be
used for purposes that would cause the tax commissioner to classify
the parcel as residential property in accordance with rules adopted
by the commissioner under section 5713.041 of the Revised Code.
Except as otherwise provided under division (D) of this section or
section 5709.51 of the Revised Code, not more than seventy-five per
cent of an improvement thus declared to be a public purpose may be
exempted from real property taxation for a period of not more than
ten years. The ordinance shall specify the percentage of the
improvement to be exempted from taxation and the life of the
exemption.
An
ordinance adopted or amended under this division shall designate the
specific public infrastructure improvements made, to be made, or in
the process of being made by the municipal corporation that directly
benefit, or that once made will directly benefit, the parcels for
which improvements are declared to be a public purpose. The service
payments provided for in section 5709.42 of the Revised Code shall be
used to finance the public infrastructure improvements designated in
the ordinance, for the purpose described in division (D)(1) of this
section or as provided in section 5709.43 of the Revised Code.
(C)(1)
The legislative authority of a municipal corporation may adopt an
ordinance creating an incentive district and declaring improvements
to parcels within the district to be a public purpose and, except as
provided in division (C)(2) of this section, exempt from taxation as
provided in this section, but no legislative authority of a municipal
corporation that has a population that exceeds twenty-five thousand,
as shown by the most recent federal decennial census, shall adopt an
ordinance that creates an incentive district if the sum of the
taxable value of real property in the proposed district for the
preceding tax year and the taxable value of all real property in the
municipal corporation that would have been taxable in the preceding
year were it not for the fact that the property was in an existing
incentive district and therefore exempt from taxation exceeds
twenty-five per cent of the taxable value of real property in the
municipal corporation for the preceding tax year. The ordinance shall
delineate the boundary of the proposed district and specifically
identify each parcel within the district. A proposed district may not
include any parcel, other than a nonperforming parcel, that is or has
been exempted from taxation under division (B) of this section or
that is or has been within another district created under this
division. On and after the effective date of the district, a
nonperforming parcel within the district is no longer exempted from
taxation under division (B) of this section or included within an
incentive district under any previous ordinance, and the parcel's
owner is no longer required to make payments in lieu of taxes under
such a previous ordinance in accordance with section 5709.42 of the
Revised Code. Any exemption application filed with the tax
commissioner under section 5715.27 of the Revised Code under the
second ordinance shall identify the nonperforming parcels included in
the second district, the original ordinance under which the
nonperforming parcels were originally exempted, and the value history
of each nonperforming parcel since the enactment of the original
ordinance. An ordinance may create more than one such district, and
more than one ordinance may be adopted under division (C)(1) of this
section.
(2)(a)
Not later than thirty days prior to adopting an ordinance under
division (C)(1) of this section, if the municipal corporation intends
to apply for exemptions from taxation under section 5709.911 of the
Revised Code on behalf of owners of real property located within the
proposed incentive district, the legislative authority of the
municipal corporation shall conduct a public hearing on the proposed
ordinance. Not later than thirty days prior to the public hearing,
the legislative authority shall give notice of the public hearing and
the proposed ordinance by first class mail to every real property
owner whose property is located within the boundaries of the proposed
incentive district that is the subject of the proposed ordinance. The
notice shall include a map of the proposed incentive district on
which the legislative authority of the municipal corporation shall
have delineated an overlay. The notice shall inform the property
owner of the owner's right to exclude the owner's property from the
incentive district if the owner's entire parcel of property will not
be located within the overlay, by submitting a written response in
accordance with division (C)(2)(b) of this section. The notice also
shall include information detailing the required contents of the
response, the address to which the response may be mailed, and the
deadline for submitting the response.
(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (C)(1) of this section
whose entire parcel of property is not located within the overlay may
exclude the property from the proposed incentive district by
submitting a written response to the legislative authority of the
municipal corporation not later than forty-five days after the
postmark date on the notice required under division (C)(2)(a) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the legislative authority under
division (C)(2)(a) of this section. The response shall conform to any
content requirements that may be established by the municipal
corporation and included in the notice provided under division
(C)(2)(a) of this section. In the response, property owners may
identify a parcel by street address, by the manner in which it is
identified in the ordinance, or by other means allowing the identity
of the parcel to be ascertained.
(c)
Before adopting an ordinance under division (C)(1) of this section,
the legislative authority of a municipal corporation shall amend the
ordinance to exclude any parcel located wholly or partly outside the
overlay for which a written response has been submitted under
division (C)(2)(b) of this section. A municipal corporation shall not
apply for exemptions from taxation under section 5709.911 of the
Revised Code for any such parcel, and service payments may not be
required from the owner of the parcel. Improvements to a parcel
excluded from an incentive district under this division may be
exempted from taxation under division (B) of this section pursuant to
an ordinance adopted under that division or under any other section
of the Revised Code under which the parcel qualifies.
(3)(a)
An ordinance adopted under division (C)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The ordinance also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the ordinance. The project identified may,
but need not be, the project under division (C)(3)(b) of this section
that places real property in use for commercial or industrial
purposes. Except as otherwise permitted under that division, the
service payments provided for in section 5709.42 of the Revised Code
shall be used to finance the designated public infrastructure
improvements, for the purpose described in division (D)(1), (E), or
(F) of this section, or as provided in section 5709.43 of the Revised
Code.
An
ordinance adopted under division (C)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and no service payment provided
for in section 5709.42 of the Revised Code and received by the
municipal corporation under the ordinance shall be used for police or
fire equipment.
(b)
An ordinance adopted under division (C)(1) of this section may
authorize the use of service payments provided for in section 5709.42
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the ordinance also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The ordinance shall designate the parcels within the district that
are eligible for housing renovation. The ordinance shall state
separately the amounts or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the general purpose of housing renovations.
(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (E) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (D) of
this section.
(D)(1)
If the ordinance declaring improvements to a parcel to be a public
purpose or creating an incentive district specifies that payments in
lieu of taxes provided for in section 5709.42 of the Revised Code
shall be paid to the city, local, or exempted village, and joint
vocational school district in which the parcel or incentive district
is located in the amount of the taxes that would have been payable to
the school district if the improvements had not been exempted from
taxation, the percentage of the improvement that may be exempted from
taxation may exceed seventy-five per cent, and the exemption may be
granted for up to thirty years, without the approval of the board of
education as otherwise required under division (D)(2) of this
section.
(2)
Improvements with respect to a parcel may be exempted from taxation
under division (B) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (C) of this section, for up to ten years or, with the
approval under this paragraph of the board of education of the city,
local, or exempted village school district within which the parcel or
district is located, for up to thirty years. The percentage of the
improvement exempted from taxation may, with such approval, exceed
seventy-five per cent, but shall not exceed one hundred per cent. Not
later than forty-five business days prior to adopting an ordinance
under this section declaring improvements to be a public purpose that
is subject to approval by a board of education under this division,
the legislative authority shall deliver to the board of education a
notice stating its intent to adopt an ordinance making that
declaration. The notice regarding improvements with respect to a
parcel under division (B) of this section shall identify the parcels
for which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period for which the improvements would be exempted from taxation and
the percentage of the improvement that would be exempted, and
indicate the date on which the legislative authority intends to adopt
the ordinance. The notice regarding improvements to parcels within an
incentive district under division (C) of this section shall delineate
the boundaries of the district, specifically identify each parcel
within the district, identify each anticipated improvement in the
district, provide an estimate of the true value in money of each such
improvement, specify the life of the district and the percentage of
improvements that would be exempted, and indicate the date on which
the legislative authority intends to adopt the ordinance. The board
of education, by resolution adopted by a majority of the board, may
approve the exemption for the period or for the exemption percentage
specified in the notice; may disapprove the exemption for the number
of years in excess of ten, may disapprove the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both; or may approve the exemption on the
condition that the legislative authority and the board negotiate an
agreement providing for compensation to the school district equal in
value to a percentage of the amount of taxes exempted in the eleventh
and subsequent years of the exemption period or, in the case of
exemption percentages in excess of seventy-five per cent,
compensation equal in value to a percentage of the taxes that would
be payable on the portion of the improvement in excess of
seventy-five per cent were that portion to be subject to taxation, or
other mutually agreeable compensation. If an agreement is negotiated
between the legislative authority and the board to compensate the
school district for all or part of the taxes exempted, including
agreements for payments in lieu of taxes under section 5709.42 of the
Revised Code, the legislative authority shall compensate the joint
vocational school district within which the parcel or district is
located at the same rate and under the same terms received by the
city, local, or exempted village school district.
(3)
The board of education shall certify its resolution to the
legislative authority not later than fourteen days prior to the date
the legislative authority intends to adopt the ordinance as indicated
in the notice. If the board of education and the legislative
authority negotiate a mutually acceptable compensation agreement, the
ordinance may declare the improvements a public purpose for the
number of years specified in the ordinance or, in the case of
exemption percentages in excess of seventy-five per cent, for the
exemption percentage specified in the ordinance. In either case, if
the board and the legislative authority fail to negotiate a mutually
acceptable compensation agreement, the ordinance may declare the
improvements a public purpose for not more than ten years, and shall
not exempt more than seventy-five per cent of the improvements from
taxation. If the board fails to certify a resolution to the
legislative authority within the time prescribed by this division,
the legislative authority thereupon may adopt the ordinance and may
declare the improvements a public purpose for up to thirty years, or,
in the case of exemption percentages proposed in excess of
seventy-five per cent, for the exemption percentage specified in the
ordinance. The legislative authority may adopt the ordinance at any
time after the board of education certifies its resolution approving
the exemption to the legislative authority, or, if the board approves
the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board and the legislative
authority.
(4)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of exemptions by the board is
not required under division (D) of this section. If a board of
education has adopted a resolution allowing a legislative authority
to deliver the notice required under division (D) of this section
fewer than forty-five business days prior to the legislative
authority's adoption of the ordinance, the legislative authority
shall deliver the notice to the board not later than the number of
days prior to such adoption as prescribed by the board in its
resolution. If a board of education adopts a resolution waiving its
right to approve agreements or shortening the notification period,
the board shall certify a copy of the resolution to the legislative
authority. If the board of education rescinds such a resolution, it
shall certify notice of the rescission to the legislative authority.
(5)
If the legislative authority is not required by division (D) of this
section to notify the board of education of the legislative
authority's intent to declare improvements to be a public purpose,
the legislative authority shall comply with the notice requirements
imposed under section 5709.83 of the Revised Code, unless the board
has adopted a resolution under that section waiving its right to
receive such a notice.
(6)
Nothing in division (D) of this section prohibits the legislative
authority of a municipal corporation from amending the ordinance or
resolution under section 5709.51 of the Revised Code to extend the
term of the exemption.
(E)(1)
If a proposed ordinance under division (C)(1) of this section exempts
improvements with respect to a parcel within an incentive district
for more than ten years, or the percentage of the improvement
exempted from taxation exceeds seventy-five per cent, not later than
forty-five business days prior to adopting the ordinance the
legislative authority of the municipal corporation shall deliver to
the board of county commissioners of the county within which the
incentive district will be located a notice that states its intent to
adopt an ordinance creating an incentive district. The notice shall
include a copy of the proposed ordinance, identify the parcels for
which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period of time for which the improvements would be exempted from
taxation, specify the percentage of the improvements that would be
exempted from taxation, and indicate the date on which the
legislative authority intends to adopt the ordinance.
(2)
The board of county commissioners, by resolution adopted by a
majority of the board, may object to the exemption for the number of
years in excess of ten, may object to the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both. If the board of county commissioners
objects, the board may negotiate a mutually acceptable compensation
agreement with the legislative authority. In no case shall the
compensation provided to the board exceed the property taxes forgone
due to the exemption. If the board of county commissioners objects,
and the board and legislative authority fail to negotiate a mutually
acceptable compensation agreement, the ordinance adopted under
division (C)(1) of this section shall provide to the board
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the county or, if the board's objection
includes an objection to an exemption percentage in excess of
seventy-five per cent, compensation equal in value to not more than
fifty per cent of the taxes that would be payable to the county, on
the portion of the improvement in excess of seventy-five per cent,
were that portion to be subject to taxation. The board of county
commissioners shall certify its resolution to the legislative
authority not later than thirty days after receipt of the notice.
(3)
If the board of county commissioners does not object or fails to
certify its resolution objecting to an exemption within thirty days
after receipt of the notice, the legislative authority may adopt the
ordinance, and no compensation shall be provided to the board of
county commissioners. If the board timely certifies its resolution
objecting to the ordinance, the legislative authority may adopt the
ordinance at any time after a mutually acceptable compensation
agreement is agreed to by the board and the legislative authority,
or, if no compensation agreement is negotiated, at any time after the
legislative authority agrees in the proposed ordinance to provide
compensation to the board of fifty per cent of the taxes that would
be payable to the county in the eleventh and subsequent years of the
exemption period or on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.
(F)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to an ordinance creating an incentive district under division (C)(1)
of this section that is adopted on or after January 1, 2006, or a
later date as specified in this division, shall be distributed to the
appropriate taxing authority as required under division (C) of
section 5709.42 of the Revised Code in an amount equal to the amount
of taxes from that additional levy or from the increase in the
effective tax rate of such renewal or replacement levy that would
have been payable to that taxing authority from the following levies
were it not for the exemption authorized under division (C) of this
section:
(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;
(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;
(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;
(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or facilities;
(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;
(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;
(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;
(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;
(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;
(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;
(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;
(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program.
(13)
A tax levied by a township under section 505.39, division (I) of
section 5705.19, or division (JJ) of section 5705.19 of the Revised
Code to the extent the proceeds are used for the purposes described
in division (I) of that section, for the purpose of funding fire,
emergency medical, and ambulance services as described in that
section and those divisions. Division (F)(13) of this section applies
only if the township levying the tax provides fire, emergency
medical, or ambulance services in the incentive district, and only to
incentive districts created by an ordinance adopted on or after the
effective date of the amendment of this section by H.B. 69 of the
132nd general assembly, March 23, 2018. The board of township
trustees may, by resolution, waive the application of this division
or negotiate with the municipal corporation that created the district
for a lesser amount of payments in lieu of taxes.
(G)
An exemption from taxation granted under this section commences with
the tax year specified in the ordinance so long as the year specified
in the ordinance commences after the effective date of the ordinance.
If the ordinance specifies a year commencing before the effective
date of the resolution or specifies no year whatsoever, the exemption
commences with the tax year in which an exempted improvement first
appears on the tax list and duplicate of real and public utility
property and that commences after the effective date of the
ordinance. In lieu of stating a specific year, the ordinance may
provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the ordinance.
With respect to the exemption of improvements to parcels under
division (B) of this section, the ordinance may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.
Except
as otherwise provided in this division or section 5709.51 of the
Revised Code, the exemption ends on the date specified in the
ordinance as the date the improvement ceases to be a public purpose
or the incentive district expires, or ends on the date on which the
public infrastructure improvements and housing renovations are paid
in full from the municipal public improvement tax increment
equivalent fund established under division (A) of section 5709.43 of
the Revised Code, whichever occurs first. The exemption of an
improvement with respect to a parcel or within an incentive district
may end on a later date, as specified in the ordinance, if the
legislative authority and the board of education of the city, local,
or exempted village school district within which the parcel or
district is located have entered into a compensation agreement under
section 5709.82 of the Revised Code with respect to the improvement,
and the board of education has approved the term of the exemption
under division (D)(2) of this section, but in no case shall the
improvement be exempted from taxation for more than thirty years.
Exemptions shall be claimed and allowed in the same manner as in the
case of other real property exemptions. If an exemption status
changes during a year, the procedure for the apportionment of the
taxes for that year is the same as in the case of other changes in
tax exemption status during the year.
(H)
Additional municipal financing of public infrastructure improvements
and housing renovations may be provided by any methods that the
municipal corporation may otherwise use for financing such
improvements or renovations. If the municipal corporation issues
bonds or notes to finance the public infrastructure improvements and
housing renovations and pledges money from the municipal public
improvement tax increment equivalent fund to pay the interest on and
principal of the bonds or notes, the bonds or notes are not subject
to Chapter 133. of the Revised Code.
(I)
The municipal corporation, not later than fifteen days after the
adoption of an ordinance under this section, shall submit to the
director of
housing
and
development
a copy of the ordinance. On or before the thirty-first day of March
of each year, the municipal corporation shall submit a status report
to the director. The report shall indicate, in the manner prescribed
by the director, the progress of the project during each year that an
exemption remains in effect, including a summary of the receipts from
service payments in lieu of taxes; expenditures of money from the
funds created under section 5709.43 of the Revised Code; a
description of the public infrastructure improvements and housing
renovations financed with such expenditures; and a quantitative
summary of changes in employment and private investment resulting
from each project.
(J)
Nothing in this section shall be construed to prohibit a legislative
authority from declaring to be a public purpose improvements with
respect to more than one parcel.
(K)
If a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.
(L)(1)
Notwithstanding the limitations on the life of an incentive district
and the number of years that improvements to a parcel or parcels
within an incentive district may be exempted from taxation prescribed
by divisions (C) and (D) of this section, the legislative authority
of a municipal corporation may amend an ordinance originally adopted
under division (C) of this section before January 1, 2006, to extend
the life of an incentive district created by that ordinance. The
extension shall be for a period not to exceed fifteen years and shall
not increase the percentage of the value of improvements exempted
from taxation.
(2)
Before adopting an amendment authorized by division (L)(1) of this
section, the legislative authority of the municipal corporation shall
provide notice of the amendment to each board of education of the
city, local, or exempted village school district in which the
incentive district is located, in the same manner as provided under
division (D) of this section, and shall obtain the approval of each
such board in the manner required under that division, except both of
the following apply:
(a)
The board of education may approve the exemption on the condition
that the legislative authority and the board negotiate an agreement
providing for mutually agreeable compensation to the school district.
(b)
If the board of education fails to certify a resolution approving the
amendment to the legislative authority within the time prescribed by
division (D) of this section, the legislative authority shall not
adopt the amendment authorized under division (L) of this section.
(3)
No approval otherwise required by division (L)(2) of this section
shall be required from a board of education if either of the
following apply:
(a)
The amendment provides for compensation to the city, local, or
exempted village school district in which the incentive district is
located equal in value to the amount of taxes that would be payable
to the school district if the improvements exempted from taxation had
not been exempted for the additional period.
(b)
The board of education has adopted a resolution waiving its right to
approve exemptions from taxation pursuant to division (D)(4) of this
section. If the board has adopted such a resolution, the municipal
corporation shall comply with the notice requirements imposed by
section 5709.83 of the Revised Code before taking formal action to
adopt an amendment authorized under division (L)(1) of this section
unless the board has adopted a resolution under that section waiving
its right to receive that notice.
(4)
Not later than fourteen days before adopting an amendment authorized
by division (L)(1) of this section, the legislative authority of the
municipal corporation shall deliver a notice identical to a notice
required under section 5709.83 of the Revised Code to the board of
county commissioners of each county in which the incentive district
is located.
Sec.
5709.41.
(A)
As used in this section:
(1)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined under section 1.14 of the
Revised Code.
(2)
"Improvement" means the increase in assessed value of any
parcel of property subsequent to the acquisition of the parcel by a
municipal corporation engaged in urban redevelopment or by a township
engaged in redevelopment.
(B)
The legislative authority of a municipal corporation or township, by
ordinance or resolution, may declare to be a public purpose any
improvement to a parcel of real property if both of the following
apply:
(1)
The municipal corporation or township held fee title to the parcel
prior to the adoption of the ordinance or resolution;
(2)
The parcel is leased, or the fee of the parcel is conveyed, to any
person either before or after adoption of the ordinance or
resolution.
Improvements
used or to be used for residential purposes may be declared a public
purpose under this section only if the parcel is located in a
blighted area of an impacted city, in the case of a municipal
corporation, or in a blighted area, in the case of a township, as
those terms are defined in section 1728.01 of the Revised Code. For
this purpose, "parcel that is used or to be used for residential
purposes" means a parcel that, as improved, is used or to be
used for purposes that would cause the tax commissioner to classify
the parcel as residential property in accordance with rules adopted
by the commissioner under section 5713.041 of the Revised Code.
(C)
Except as otherwise provided in division (C)(1), (2), or (3) of this
section, not more than seventy-five per cent of an improvement thus
declared to be a public purpose may be exempted from real property
taxation. The ordinance or resolution shall specify the percentage of
the improvement to be exempted from taxation. If a parcel is located
in a new community district in which the new community authority
imposes a community development charge on the basis of rentals
received from leases of real property as described in division (L)(2)
of section 349.01 of the Revised Code, the parcel may not be exempted
from taxation under this section.
(1)
If the ordinance or resolution declaring improvements to a parcel to
be a public purpose specifies that payments in lieu of taxes provided
for in section 5709.42 or 5709.74 of the Revised Code shall be paid
to the city, local, or exempted village school district in which the
parcel is located in the amount of the taxes that would have been
payable to the school district if the improvements had not been
exempted from taxation, the percentage of the improvement that may be
exempted from taxation may exceed seventy-five per cent, and the
exemption may be granted for up to thirty years, without the approval
of the board of education as otherwise required under division (C)(2)
of this section.
(2)
Improvements may be exempted from taxation for up to ten years or,
with the approval of the board of education of the city, local, or
exempted village school district within the territory of which the
improvements are or will be located, for up to thirty years. The
percentage of the improvement exempted from taxation may, with such
approval, exceed seventy-five per cent, but shall not exceed one
hundred per cent. Not later than forty-five business days prior to
adopting an ordinance or resolution under this section, the
legislative authority shall deliver to the board of education a
notice stating its intent to declare improvements to be a public
purpose under this section. The notice shall describe the parcel and
the improvements, provide an estimate of the true value in money of
the improvements, specify the period for which the improvements would
be exempted from taxation and the percentage of the improvements that
would be exempted, and indicate the date on which the legislative
authority intends to adopt the ordinance or resolution. The board of
education, by resolution adopted by a majority of the board, may
approve the exemption for the period or for the exemption percentage
specified in the notice, may disapprove the exemption for the number
of years in excess of ten, may disapprove the exemption for the
percentage of the improvements to be exempted in excess of
seventy-five per cent, or both, or may approve the exemption on the
condition that the legislative authority and the board negotiate an
agreement providing for compensation to the school district equal in
value to a percentage of the amount of taxes exempted in the eleventh
and subsequent years of the exemption period, or, in the case of
exemption percentages in excess of seventy-five per cent,
compensation equal in value to a percentage of the taxes that would
be payable on the portion of the improvement in excess of
seventy-five per cent were that portion to be subject to taxation.
The board of education shall certify its resolution to the
legislative authority not later than fourteen days prior to the date
the legislative authority intends to adopt the ordinance or
resolution as indicated in the notice. If the board of education
approves the exemption on the condition that a compensation agreement
be negotiated, the board in its resolution shall propose a
compensation percentage. If the board of education and the
legislative authority negotiate a mutually acceptable compensation
agreement, the ordinance or resolution may declare the improvements a
public purpose for the number of years specified in the ordinance or
resolution or, in the case of exemption percentages in excess of
seventy-five per cent, for the exemption percentage specified in the
ordinance or resolution. In either case, if the board and the
legislative authority fail to negotiate a mutually acceptable
compensation agreement, the ordinance or resolution may declare the
improvements a public purpose for not more than ten years, but shall
not exempt more than seventy-five per cent of the improvements from
taxation. If the board fails to certify a resolution to the
legislative authority within the time prescribed by this division,
the legislative authority thereupon may adopt the ordinance or
resolution and may declare the improvements a public purpose for up
to thirty years. The legislative authority may adopt the ordinance or
resolution at any time after the board of education certifies its
resolution approving the exemption to the legislative authority, or,
if the board approves the exemption on the condition that a mutually
acceptable compensation agreement be negotiated, at any time after
the compensation agreement is agreed to by the board and the
legislative authority. If a mutually acceptable compensation
agreement is negotiated between the legislative authority and the
board, including agreements for payments in lieu of taxes under
section 5709.42 or 5709.74 of the Revised Code, the legislative
authority shall compensate the joint vocational school district
within the territory of which the improvements are or will be located
at the same rate and under the same terms received by the city,
local, or exempted village school district.
(3)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation and the resolution remains in
effect, approval of exemptions by the board is not required under
this division. If a board of education has adopted a resolution
allowing a legislative authority to deliver the notice required under
this division fewer than forty-five business days prior to the
legislative authority's adoption of the ordinance or resolution, the
legislative authority shall deliver the notice to the board not later
than the number of days prior to such adoption as prescribed by the
board in its resolution. If a board of education adopts a resolution
waiving its right to approve exemptions or shortening the
notification period, the board shall certify a copy of the resolution
to the legislative authority. If the board of education rescinds such
a resolution, it shall certify notice of the rescission to the
legislative authority.
(4)
If the legislative authority is not required by division (C)(1), (2),
or (3) of this section to notify the board of education of the
legislative authority's intent to declare improvements to be a public
purpose, the legislative authority shall comply with the notice
requirements imposed under section 5709.83 of the Revised Code,
unless the board has adopted a resolution under that section waiving
its right to receive such a notice.
(5)
Nothing in division (C) of this section prohibits the legislative
authority of a municipal corporation or township from amending the
ordinance or resolution under section 5709.51 of the Revised Code to
extend the term of the exemption.
(D)
An exemption granted under this section commences with the tax year
specified in the ordinance or resolution so long as the year
specified in the ordinance or resolution commences after the
effective date of the ordinance or resolution. If the ordinance or
resolution specifies a year commencing before the effective date of
the ordinance or resolution or specifies no year, the exemption
commences with the tax year in which an exempted improvement first
appears on the tax list and that commences after the effective date
of the ordinance or resolution. In lieu of stating a specific year,
the ordinance or resolution may provide that the exemption commences
in the tax year in which the value of an improvement exceeds a
specified amount or in which the construction of one or more
improvements is completed, provided that such tax year commences
after the effective date of the ordinance or resolution. In lieu of
stating a specific year, the ordinance or resolution may allow for
the exemption to commence in different tax years on a
parcel-by-parcel basis, with a separate exemption term specified for
each parcel. The exemption ends on the date specified in the
ordinance or resolution as the date the improvement ceases to be a
public purpose. The exemption shall be claimed and allowed in the
same or a similar manner as in the case of other real property
exemptions. If an exemption status changes during a tax year, the
procedure for the apportionment of the taxes for that year is the
same as in the case of other changes in tax exemption status during
the year.
(E)
A municipal corporation or township, not later than fifteen days
after the adoption of an ordinance or resolution granting a tax
exemption under this section, shall submit to the director of
housing
and
development
a copy of the ordinance or resolution. On or before the thirty-first
day of March each year, the municipal corporation or township shall
submit a status report to the director of
housing
and
development
outlining the progress of the project during each year that the
exemption remains in effect.
Sec.
5709.45.
(A)
As used in sections 5709.45 to 5709.47 of the Revised Code:
(1)
"Downtown redevelopment district" or "district"
means an area not more than ten acres enclosed by a continuous
boundary in which at least one historic building is being, or will
be, rehabilitated.
(2)
"Historic building" and "rehabilitation" have the
same meanings as in section 149.311 of the Revised Code.
(3)
"Public infrastructure improvement" has the same meaning as
in section 5709.40 of the Revised Code.
(4)
"Improvement" means the increase in the assessed value of
real property that would first appear on the tax list after the
effective date of an ordinance adopted under this section were it not
for the exemption granted by the ordinance.
(5)
"Innovation district" means an area located entirely within
a downtown redevelopment district, enclosed by a continuous boundary,
and equipped with a high-speed broadband network capable of download
speeds of at least one hundred gigabits per second.
(6)
"Qualified business" means a business primarily engaged, or
primarily organized to engage, in a trade or business that involves
research and development, technology transfer, bio-technology,
information technology, or the application of new technology
developed through research and development or acquired through
technology transfer.
(7)
"Information technology" means the branch of technology
devoted to the study and application of data and the processing
thereof; the automatic acquisition, storage, manipulation or
transformation, management, movement, control, display, switching,
interchange, transmission or reception of data, and the development
or use of hardware, software, firmware, and procedures associated
with this processing. "Information technology" includes
matters concerned with the furtherance of computer science and
technology, design, development, installation, and implementation of
information systems and applications that in turn will be licensed or
sold to a specific target market. "Information technology"
does not include the creation of a distribution method for existing
products and services.
(8)
"Research and development" means designing, creating, or
formulating new or enhanced products, equipment, or processes, and
conducting scientific or technological inquiry and experimentation in
the physical sciences with the goal of increasing scientific
knowledge that may reveal the bases for new or enhanced products,
equipment, or processes.
(9)
"Technology transfer" means the transfer of technology from
one sector of the economy to another, including the transfer of
military technology to civilian applications, civilian technology to
military applications, or technology from public or private research
laboratories to military or civilian applications.
(B)
For the purposes of promoting rehabilitation of historic buildings,
creating jobs, and encouraging economic development in commercial and
mixed-use commercial and residential areas, and for the purpose of
funding transportation improvements that will benefit such areas, the
legislative authority of a municipal corporation may adopt an
ordinance creating a downtown redevelopment district and declaring
improvements to parcels within the district to be a public purpose
and exempt from taxation. Downtown redevelopment districts shall not
be created in areas used exclusively for residential purposes and
shall not be utilized for development or redevelopment of residential
areas.
The
ordinance shall specify all of the following:
(1)
The boundary of the district;
(2)
The county treasurer's permanent parcel number associated with each
parcel included in the district;
(3)
The parcel or parcels within the district that include a historic
building that is being or will be rehabilitated;
(4)
The proposed life of the district;
(5)
An economic development plan for the district that includes all of
the following:
(a)
A statement describing the principal purposes and goals to be served
by creating the district;
(b)
An explanation of how the municipal corporation will collaborate with
businesses and property owners within the district to develop
strategies for achieving such purposes and goals;
(c)
A plan for using the service payments provided for in section 5709.46
of the Revised Code to promote economic development and job creation
within the district.
Not
more than seventy per cent of improvements to parcels within a
downtown redevelopment district may be exempted from taxation under
this section. A district may not include a parcel that is exempted
from taxation under this section or section 5709.40 or 5709.41 of the
Revised Code on the effective date of the ordinance. Except as
provided in division (F) of this section, the life of a downtown
redevelopment district shall not exceed ten years.
A
municipal corporation may adopt more than one ordinance under
division (B) of this section. A single such ordinance may create more
than one downtown redevelopment district.
(C)
For the purposes of attracting and facilitating growth of qualified
businesses and supporting the economic development efforts of
business incubators and accelerators, the legislative authority of a
municipal corporation may designate an innovation district within a
proposed or existing downtown redevelopment district. The life of the
innovation district shall be identical to the downtown redevelopment
district in which the innovation district is located. In addition to
the requirements in division (B) of this section, an ordinance
creating a downtown redevelopment district that includes an
innovation district shall specify all of the following:
(1)
The boundary of the innovation district;
(2)
The permanent parcel number associated with each parcel included in
the innovation district;
(3)
An economic development plan for the innovation district that meets
the criteria prescribed by division (B)(5) of this section.
(D)
At least thirty days before adopting an ordinance under division (B)
of this section, the legislative authority of the municipal
corporation shall conduct a public hearing on the proposed ordinance
and the accompanying economic development plan. At least thirty days
before the public hearing, the legislative authority shall give
notice of the public hearing and the proposed ordinance by first
class mail to every real property owner whose property is located
within the boundaries of the proposed district that is the subject of
the proposed ordinance.
(E)
Revenue derived from downtown redevelopment district service payments
may be used by the municipal corporation for any of the following
purposes:
(1)
To finance or support loans, deferred loans, or grants to owners of
historic buildings within the downtown redevelopment district. Such
loans or grants shall be awarded upon the condition that the loan or
grant amount may be used by the owner only to rehabilitate the
historic building. A municipal corporation that awards a loan or
grant under this division shall develop a plan for tracking the loan
or grant recipient's use of the loan or grant and monitoring the
progress of the recipient's rehabilitation project.
(2)
To make contributions to a special improvement district for use under
section 1710.14 of the Revised Code, to a community improvement
corporation for use under section 1724.12 of the Revised Code, or to
a nonprofit corporation, as defined in section 1702.01 of the Revised
Code, the primary purpose of which is redeveloping historic buildings
and historic districts for use by the corporation to rehabilitate a
historic building within the downtown redevelopment district or to
otherwise promote or enhance the district. Amounts contributed under
division (E)(2) of this section shall not exceed the property tax
revenue that would have been generated by twenty per cent of the
assessed value of the exempted improvements within the downtown
redevelopment district.
(3)
To finance or support loans to owners of one or more buildings
located within the district that do not qualify as historic
buildings. Such loans shall be awarded upon the condition that the
loan amount may be used by the owner only to make repairs and
improvements to the building or buildings. A municipal corporation
that awards a loan under this division shall develop a plan for
tracking the loan recipient's use of the loan and monitoring the
progress of the recipient's repairs or improvements.
(4)
To finance public infrastructure improvements within the downtown
redevelopment district. If revenue generated by the downtown
redevelopment district will be used to finance public infrastructure
improvements, the economic development plan described by division
(B)(5) of this section shall identify specific projects that are
being or will be undertaken within the district and describe how such
infrastructure improvements will accommodate additional demands on
the existing infrastructure within the district. A municipal
corporation shall not use service payments derived from a downtown
redevelopment district to repair or replace police or fire equipment.
(5)
To finance or support loans, deferred loans, or grants to qualified
businesses or to incubators and accelerators that provide services
and capital to qualified businesses within an innovation district.
Such loans or grants shall be awarded upon the condition that the
loan or grant shall be used by the recipient to start or develop one
or more qualified businesses within the innovation district. A
municipal corporation that awards a loan or grant under this division
shall develop a plan for tracking the loan or grant recipient's use
of the loan or grant and monitoring the establishment and growth of
the qualified business.
(F)
Notwithstanding division (B) of this section, improvements to parcels
located within a downtown redevelopment district may be exempted from
taxation under this section for up to thirty years if either of the
following apply:
(1)
The ordinance creating the redevelopment district specifies that
payments in lieu of taxes shall be paid to the city, local, or
exempted village, and joint vocational school district or districts
in which the redevelopment district is located in the amount of the
taxes that would have been payable to the school district or
districts if the improvements had not been exempted from taxation.
(2)
The municipal corporation creating the district obtains the approval
under division (G) of this section of the board of education of each
city, local, and exempted village school district within which the
district will be located.
(G)(1)
The legislative authority of a municipal corporation seeking the
approval of a school district for the purpose of division (G)(2) of
this section shall send notice of the proposed ordinance to the
school district not later than forty-five business days before it
intends to adopt the ordinance. The notice shall include a copy of
the proposed ordinance and shall indicate the date on which the
legislative authority intends to adopt the ordinance. The board of
education of the school district, by resolution adopted by a majority
of the board, may do any of the following:
(a)
Approve the exemption for the number of years specified in the
proposed ordinance;
(b)
Disapprove the exemption for the number of years in excess of ten;
(c)
Approve the exemption on the condition that the legislative authority
and the board negotiate an agreement providing for compensation to
the school district equal in value to a percentage of the amount of
taxes exempted in the eleventh and subsequent years of the exemption
period or other mutually agreeable compensation. If an agreement is
negotiated under this division, the legislative authority shall
compensate all joint vocational school districts within which the
downtown redevelopment district is located at the same rate and under
the same terms received by the city, local, or exempted village
school district.
(2)
The board of education shall certify a resolution adopted under
division (G)(1) of this section to the legislative authority of the
municipal corporation not later than fourteen days before the date
the legislative authority intends to adopt the ordinance as indicated
in the notice. If the board of education approves the ordinance or
negotiates a mutually acceptable compensation agreement with the
legislative authority, the legislative authority may enact the
ordinance in its current form. If the board disapproves of the
ordinance and fails to negotiate a mutually acceptable compensation
agreement with the legislative authority, the legislative authority
may exempt improvements to parcels within the downtown redevelopment
district for not more than ten years. If the board fails to certify a
resolution to the legislative authority within the time prescribed by
this division, the legislative authority may adopt the ordinance and
may exempt improvements to parcels within the downtown redevelopment
district for the period of time specified in the notice delivered to
the board of education. The legislative authority may adopt the
ordinance at any time after the board of education certifies its
resolution approving the exemption to the legislative authority or,
if the board approves the exemption on the condition that a mutually
acceptable compensation agreement be negotiated, at any time after
the compensation agreement is agreed to by the board and the
legislative authority.
(3)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of exemptions by the board is
not required under division (G) of this section. If a board of
education has adopted a resolution allowing a legislative authority
to deliver the notice required under division (G)(1) of this section
fewer than forty-five business days before the legislative
authority's adoption of the ordinance, the legislative authority
shall deliver the notice to the board not later than the number of
days before such adoption as prescribed by the board in its
resolution. If a board of education adopts a resolution waiving its
right to approve agreements or shortening the notification period,
the board shall certify a copy of the resolution to the legislative
authority. If the board of education rescinds such a resolution, it
shall certify notice of the rescission to the legislative authority.
(4)
If the legislative authority is not required by division (G) of this
section to notify the board of education of the legislative
authority's intent to create a downtown redevelopment district, the
legislative authority shall comply with the notice requirements
imposed under section 5709.83 of the Revised Code, unless the board
has adopted a resolution under that section waiving its right to
receive such a notice.
(H)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to an ordinance creating a downtown redevelopment district under
division (B) of this section shall be distributed to the appropriate
taxing authority as required under division (C) of section 5709.46 of
the Revised Code in an amount equal to the amount of taxes from that
additional levy or from the increase in the effective tax rate of
such renewal or replacement levy that would have been payable to that
taxing authority from the following levies were it not for the
exemption authorized under division (B) of this section:
(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 of the Revised Code for community developmental disabilities
programs and services pursuant to Chapter 5126. of the Revised Code;
(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;
(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;
(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or facilities;
(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;
(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;
(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;
(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;
(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;
(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;
(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;
(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program.
(I)
An exemption from taxation granted under this section commences with
the tax year specified in the ordinance so long as the year specified
in the ordinance commences after the effective date of the ordinance.
If the ordinance specifies a year commencing before the effective
date of the ordinance or specifies no year whatsoever, the exemption
commences with the tax year in which an exempted improvement first
appears on the tax list and that commences after the effective date
of the ordinance. In lieu of stating a specific year, the ordinance
may provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the ordinance.
Except
as otherwise provided in this division, the exemption ends on the
date specified in the ordinance as the date the improvement ceases to
be a public purpose or the downtown redevelopment district expires,
whichever occurs first. The exemption of an improvement within a
downtown redevelopment district may end on a later date, as specified
in the ordinance, if the legislative authority and the board of
education of the city, local, or exempted village school district
within which the parcel or district is located have entered into a
compensation agreement under section 5709.82 of the Revised Code with
respect to the improvement, and the board of education has approved
the term of the exemption under division (G) of this section, but in
no case shall the improvement be exempted from taxation for more than
thirty years. Exemptions shall be claimed and allowed in the same
manner as in the case of other real property exemptions. If an
exemption status changes during a year, the procedure for the
apportionment of the taxes for that year is the same as in the case
of other changes in tax exemption status during the year.
(J)
Additional municipal financing of the projects and services described
in division (E) of this section may be provided by any methods that
the municipal corporation may otherwise use for financing such
projects and services. If the municipal corporation issues bonds or
notes to finance such projects and services and pledges money from
the municipal downtown redevelopment district fund to pay the
interest on and principal of the bonds or notes, the bonds or notes
are not subject to Chapter 133. of the Revised Code.
(K)
The municipal corporation, not later than fifteen days after the
adoption of an ordinance under this section, shall submit to the
director of
housing
and
development
services
a
copy of the ordinance. On or before the thirty-first day of March of
each year, the municipal corporation shall submit a status report to
the director of
housing
and
development
services
.
The report shall indicate, in the manner prescribed by the director,
the progress of the projects and services during each year that an
exemption remains in effect, including a summary of the receipts from
service payments in lieu of taxes; expenditures of money from the
funds created under section 5709.47 of the Revised Code; a
description of the projects and services financed with such
expenditures; and a quantitative summary of changes in employment and
private investment resulting from each project and service.
(L)
Nothing in this section shall be construed to prohibit a legislative
authority from declaring to be a public purpose improvements with
respect to more than one parcel.
(M)(1)
The owner of real property located in a downtown redevelopment
district may enter into an agreement with the municipal corporation
that created the district to impose a redevelopment charge on the
property to cover all or part of the cost of services, facilities,
and improvements provided within the district under division (E) of
this section. The agreement shall include the following:
(a)
The amount of the redevelopment charge. The redevelopment charge may
be a fixed dollar amount or an amount determined on the basis of the
assessed valuation of the property or all or part of the profits,
gross receipts, or other revenues of a business operating on the
property, including rentals received from leases of the property. If
the property is leased to one or more tenants, the redevelopment
charge may be itemized as part of the lease rate.
(b)
The termination date of the redevelopment charge. The redevelopment
charge shall not be charged after the expiration or termination of
the downtown redevelopment district.
(c)
The terms by which the municipal corporation shall collect the
redevelopment charge.
(d)
The purposes for which the redevelopment charge may be used by the
municipal corporation. The redevelopment charge shall be used only
for those purposes described by division (E) of this section. The
agreement may specify any or all of such purposes.
(2)
Redevelopment charges collected by a municipal corporation under
division (M) of this section shall be deposited to the municipal
downtown redevelopment district fund created under section 5709.47 of
the Revised Code.
(3)
An agreement by a property owner under division (M) of this section
is hereby deemed to be a covenant running with the land. The covenant
is fully binding on behalf of and enforceable by the municipal
corporation against any person acquiring an interest in the land and
all of that person's successors and assigns.
(4)
No purchase agreement for real estate or any interest in real estate
upon which a redevelopment charge is levied shall be enforceable by
the seller or binding upon the purchaser unless the purchase
agreement specifically refers to the redevelopment charge. If a
conveyance of such real estate or interest in such real estate is
made pursuant to a purchase agreement that does not make such
reference, the redevelopment charge shall continue to be a covenant
running with the land fully binding on behalf of and enforceable by
the municipal corporation against the person accepting the conveyance
pursuant to the purchase agreement.
(5)
If a redevelopment charge is not paid when due, the overdue amount
shall be collected according to the terms of the agreement. If the
agreement does not specify a procedure for collecting overdue
redevelopment charges, the municipal corporation may certify the
charge to the county auditor. The county auditor shall enter the
unpaid charge on the tax list and duplicate of real property opposite
the parcel against which it is charged and certify the charge to the
county treasurer. The unpaid redevelopment charge is a lien on
property against which it is charged from the date the charge is
entered on the tax list, and shall be collected in the manner
provided for the collection of real property taxes. Once the charge
is collected, it shall be paid immediately to the municipal
corporation.
Sec.
5709.48.
(A)
As used in this section and sections 5709.481, 5709.49, and 5709.50
of the Revised Code:
(1)
"Regional transportation improvement project" has the same
meaning as in section 5595.01 of the Revised Code.
(2)
"Improvements" means the increase in the assessed value of
any real property that would first appear on the tax list and
duplicate of real and public utility property after the effective
date of the resolution adopted under this section were it not for the
exemption granted by that resolution.
(B)
For the purposes described in division (A) of section 5595.06 of the
Revised Code, the governing board of a regional transportation
improvement project that was undertaken pursuant to section 5595.02
of the Revised Code before March 23, 2018, may, by resolution, create
a transportation financing district and declare improvements to
parcels within the district to be a public purpose and exempt from
taxation.
(C)
A transportation financing district shall consist of all territory of
all counties that are participants in the regional transportation
improvement project funded by the district, except that the district
shall not include parcels used primarily for residential purposes,
parcels that are currently exempt from taxation under this section or
section 5709.40, 5709.41, 5709.45, 5709.73, or 5709.77 of the Revised
Code, or parcels excluded from the district under division (G) of
this section.
(D)
A resolution creating a transportation financing district shall
specify all of the following:
(1)
The county treasurer's permanent parcel number associated with each
parcel included in the district;
(2)(a)
The percentage of improvements to be exempted from taxation and the
duration of the exemption.
(b)
Except as provided in division (E) of this section, the percentage of
improvements to be exempted shall not exceed seventy-five per cent,
and the duration of the exemption shall not exceed ten years.
(c)
In no case may the life of the exemption exceed the remaining number
of years the cooperative agreement for the regional transportation
improvement district, described under section 5595.03 of the Revised
Code, is in effect.
(3)
A plan for the district that describes the principal purposes and
goals to be served by the district and explains how the use of
service payments provided for by section 5709.49 of the Revised Code
will economically benefit owners of property within the district.
(E)
Subject to division (D)(2)(c) of this section, improvements to
parcels located in a transportation financing district may be
exempted from taxation for up to thirty years, and the percentage of
improvements that may be exempted may equal up to one hundred per
cent, if either of the following apply:
(1)
The governing board, before adopting a resolution under division (B)
of this section, obtains the approval under division (F) of
this
section
of the board of education of each city, local, and exempted village
school district within the territory of the proposed transportation
financing district.
(2)
In the resolution creating the transportation financing district, the
governing board agrees to compensate each city, local, or exempted
village, and joint vocational school district or districts in which
the transportation financing district is located for the full amount
of taxes that would have been payable to the school district or
districts if the improvements had not been exempted from taxation.
(F)(1)
A governing board seeking the approval of a school district for the
purpose of division (E)(1) of this section shall send notice of the
proposed resolution to the school district not later than forty-five
business days before it intends to adopt the resolution. The notice
shall include a copy of the proposed resolution and shall indicate
the date on which the governing board intends to adopt the
resolution.
The
board of education, by resolution adopted by a majority of the board,
may approve the exemption for the period or for the exemption
percentage specified in the notice; may disapprove the exemption for
the number of years in excess of ten, may disapprove the exemption
for the percentage of the improvements to be exempted in excess of
seventy-five per cent, or both; or may approve the exemption on the
condition that the governing board and the board of education
negotiate an agreement providing for compensation equal in value to a
percentage of the amount of taxes exempted or some other mutually
agreeable compensation. If a mutually acceptable compensation
agreement is negotiated between the governing board and the board of
education, the governing board shall compensate the joint vocational
school district within which the district is located at the same rate
and under the same terms received by the city, local, or exempted
village school district.
(2)
The board of education shall certify a resolution adopted under
division (F)(1) of this section to the governing board not later than
fourteen days before the date the governing board intends to adopt
the resolution as indicated in the notice. If the board of education
approves the ordinance or negotiates a mutually acceptable
compensation agreement, the governing board may enact the resolution
in its current form. If the board of education disapproves of the
ordinance and fails to negotiate a mutually acceptable compensation
agreement, the resolution is subject to the limitations prescribed by
divisions (D)(2)(b) and (c) of this section. If the board of
education fails to certify a resolution within the time prescribed by
this division, the governing board may adopt the resolution and
declare the improvements a public purpose for the period of time
specified in the resolution, or, in the case of exemption percentages
proposed in excess of seventy-five per cent, for the exemption
percentage specified in the resolution.
The
governing board may adopt the resolution at any time after the board
of education certifies its resolution approving the exemption, or, if
the board of education approves the exemption on the condition that a
mutually acceptable compensation agreement be negotiated, at any time
after the compensation agreement is agreed to by the board of
education and the governing board.
(3)
A board of education may adopt a resolution waiving its right to
approve or receive notice of transportation financing districts
proposed under this section. If a board of education has adopted such
a resolution, the terms of that resolution supersede the requirements
of division (F)(1) of this section. The governing board may negotiate
an agreement with a board of education providing for some mutually
agreeable compensation in exchange for the board of education
adopting such a resolution. If a board of education has adopted such
an ordinance or resolution, it shall certify a copy to the governing
board. If the board of education rescinds such a resolution, it shall
certify notice of the rescission to the governing board.
(4)
If the governing board is not required by division (F) of this
section to notify the board of education of the governing board's
intent to create a transportation financing district, the governing
board shall comply with the notice requirements imposed under section
5709.83 of the Revised Code, unless the board of education has
adopted a resolution under that section waiving its right to receive
such a notice.
(G)
The governing board shall notify and obtain the approval of every
real property owner whose property is included in the proposed
transportation financing district. The approval shall include a
signed agreement between the property owner and the governing board
that specifies the projects and purposes for which the service
payments made by the owner under section 5709.49 of the Revised Code
will be used. Such an agreement does not supersede any compensation
agreement between the governing board and a school district under
division (F) of this section. If the property owner and the governing
board do not reach an agreement under this division, the parcel shall
be excluded from the district.
(H)(1)
Upon adopting a resolution creating a transportation financing
district, the governing board shall send a copy of the resolution and
documentation sufficient to prove that the requirements of divisions
(F) and (G) of this section have been met to the director of
housing
and
development.
The director shall evaluate the resolution and documentation to
determine if the governing board has fully complied with the
requirements of this section. If the director approves the
resolution, the director shall send notice of approval to the
governing board. If the director does not approve the resolution, the
director shall send a notice of denial to the governing board that
includes the reason or reasons for the denial. If the director does
not make a determination within ninety days after receiving a
resolution under this section, the director is deemed to have
approved the resolution. No resolution creating a transportation
financing district is effective without actual or constructive
approval by the director under this section.
(2)
An exemption from taxation granted under this section commences with
the tax year specified in the resolution so long as the year
specified in the resolution commences after the effective date of the
resolution. If the resolution specifies a year commencing before the
effective date of the resolution or specifies no year whatsoever, the
exemption commences with the tax year in which an exempted
improvement first appears on the tax list and that commences after
the effective date of the resolution.
(3)
Except as otherwise provided in this division, the exemption ends on
the date specified in the resolution as the date the improvement
ceases to be a public purpose or the regional transportation
improvement project funded by the service payments dissolves under
section 5595.13 of the Revised Code, whichever occurs first.
Exemptions shall be claimed and allowed in the same manner as in the
case of other real property exemptions. If an exemption status
changes during a year, the procedure for the apportionment of the
taxes for that year is the same as in the case of other changes in
tax exemption status during the year.
(I)
The resolution creating a transportation financing district may be
amended at any time by majority vote of the governing board and with
the approval of the director of
housing
and
development
obtained in the same manner as approval of the original resolution.
Such an amendment may include adding a parcel to the district that
was previously excluded under division (G) of this section, so long
as the governing board and the owner of the parcel reach an agreement
on the use of service payments as provided under that division.
Sec.
5709.51.
(A)
The legislative authority of a municipal corporation, a board of
township trustees, or a board of county commissioners may amend or
provide in an ordinance or resolution adopted in accordance with
division (B) of section 5709.40, section 5709.41, division (B) of
section 5709.73, or division (A) of section 5709.78 of the Revised
Code, as applicable, to extend the exemption from taxation of
improvements to the parcel or parcels designated in the ordinance or
resolution for an additional period of not more than thirty years if
all of the following conditions are met:
(1)
Either (a) the service payments made pursuant to section 5709.42,
5709.74, or 5709.79 of the Revised Code by the owner or owners of the
parcel or parcels designated in the ordinance or resolution exceeded
one million five hundred thousand dollars in the calendar year
preceding the adoption of the amendment or (b) the legislative
authority of the municipal corporation, a board of township trustees,
or a board of county commissioners determines that the service
payments to be made pursuant to section 5709.42, 5709.74, or 5709.79
of the Revised Code by the owner or owners of the parcel or parcels
designated in the ordinance or resolution will exceed one million
five hundred thousand dollars in any future year.
(2)
The service payments described in division (A)(1) of this section did
not exceed one million five hundred thousand dollars in any calendar
year before the calendar year immediately preceding the adoption of
the amendment. This condition applies only to amendments adopted
under this section on or after January 1, 2024.
(3)
The amendment extending or the ordinance or resolution approving the
exemption provides for compensation to the city, local, or exempted
village school district in which the parcel or parcels are located
equal in value to the amount of taxes that would be payable to the
school district if the improvements had not been exempted from
taxation for the additional period.
(B)
Not later than fifteen days after adopting or amending an ordinance
or resolution under this section, the legislative authority of the
municipal corporation, board of township trustees, or board of county
commissioners shall send a copy of the amendment to the director of
housing
and
development.
(C)
The amendment to this section by H.B. 33 of the 135th general
assembly applies to any proceedings commenced after
the
effective date of that amendment
October
3, 2023
,
and, insofar as the amendment supports the actions taken, also
applies to proceedings that, on that date, are pending, in progress,
or completed, notwithstanding the applicable law previously in effect
or any provision to the contrary in a prior resolution, ordinance,
order, advertisement, notice, or other proceeding. Any proceedings
pending or in progress on
the
effective date of that amendment
October
3, 2023
,
shall be deemed to have been taken in conformity with that amendment.
Sec.
5709.61.
As
used in sections 5709.61 to 5709.69 of the Revised Code:
(A)
"Enterprise zone" or "zone" means any of the
following:
(1)
An area with a single continuous boundary designated in the manner
set forth in section 5709.62 or 5709.63 of the Revised Code and
certified by the director of
housing
and
development
as having a population of at least four thousand according to the
best and most recent data available to the director and having at
least two of the following characteristics:
(a)
It is located in a municipal corporation defined by the United States
office of management and budget as a principal city of a metropolitan
statistical area;
(b)
It is located in a county designated as being in the "Appalachian
region" under the "Appalachian Regional Development Act of
1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended;
(c)
Its average rate of unemployment, during the most recent twelve-month
period for which data are available, is equal to at least one hundred
twenty-five per cent of the average rate of unemployment for the
state of Ohio for the same period;
(d)
There is a prevalence of commercial or industrial structures in the
area that are vacant or demolished, or are vacant and the taxes
charged thereon are delinquent, and certification of the area as an
enterprise zone would likely result in the reduction of the rate of
vacant or demolished structures or the rate of tax delinquency in the
area;
(e)
The population of all census tracts in the area, according to the
federal census of 2000, decreased by at least ten per cent between
the years 1980 and 2000;
(f)
At least fifty-one per cent of the residents of the area have incomes
of less than eighty per cent of the median income of residents of the
municipal corporation or municipal corporations in which the area is
located, as determined in the same manner specified under section
119(b) of the "Housing and Community Development Act of 1974,"
88 Stat. 633, 42 U.S.C. 5318, as amended;
(g)
The area contains structures previously used for industrial purposes,
but currently not so used due to age, obsolescence, deterioration,
relocation of the former occupant's operations, or cessation of
operations resulting from unfavorable economic conditions either
generally or in a specific economic sector;
(h)
It is located within one or more adjacent city, local, or exempted
village school districts, the income-weighted tax capacity of each of
which is less than seventy per cent of the average of the
income-weighted tax capacity of all city, local, or exempted village
school districts in the state according to the most recent data
available to the director from the department of taxation.
The
director of
housing
and
development
shall adopt rules in accordance with Chapter 119. of the Revised Code
establishing conditions constituting the characteristics described in
divisions (A)(1)(d), (g), and (h) of this section.
If
an area could not be certified as an enterprise zone unless it
satisfied division (A)(1)(g) of this section, the legislative
authority may enter into agreements in that zone under section
5709.62, 5709.63, or 5709.632 of the Revised Code only if such
agreements result in the development of the facilities described in
that division, the parcel of land on which such facilities are
situated, or adjacent parcels. The director of
housing
and
development
annually shall review all agreements in such zones to determine
whether the agreements have resulted in such development; if the
director determines that the agreements have not resulted in such
development, the director immediately shall revoke certification of
the zone and notify the legislative authority of such revocation. Any
agreements entered into prior to revocation under this paragraph
shall continue in effect for the period provided in the agreement.
(2)
An area with a single continuous boundary designated in the manner
set forth in section 5709.63 of the Revised Code and certified by the
director of
housing
and
development
as having all of the following characteristics:
(a)
Being located within a county that contains a population of three
hundred thousand or less;
(b)
Having a population of at least one thousand according to the best
and most recent data available to the director;
(c)
Having at least two of the characteristics described in divisions
(A)(1)(b) to (h) of this section.
(3)
An area with a single continuous boundary designated in the manner
set forth under division (A)(1) of section 5709.632 of the Revised
Code and certified by the director of
housing
and
development
as having a population of at least four thousand, or under division
(A)(2) of that section and certified as having a population of at
least one thousand, according to the best and most recent data
available to the director.
(B)
"Enterprise" means any form of business organization
including, but not limited to, any partnership, sole proprietorship,
or corporation, including an S corporation as defined in section 1361
of the Internal Revenue Code and any corporation that is majority
worker-owned either directly through the ownership of stock or
indirectly through participation in an employee stock ownership plan.
(C)
"Facility" means an enterprise's place of business in a
zone, including land, buildings, machinery, equipment, and other
materials, except inventory, used in business. "Facility"
includes land, buildings, machinery, production and station
equipment, other equipment, and other materials, except inventory,
used in business to generate electricity, provided that, for purposes
of sections 5709.61 to 5709.69 of the Revised Code, the value of the
property at such a facility shall be reduced by the value, if any,
that is not apportioned under section 5727.15 of the Revised Code to
the taxing district in which the facility is physically located. In
the case of such a facility that is physically located in two
adjacent taxing districts, the property located in each taxing
district constitutes a separate facility.
"Facility"
does not include any portion of an enterprise's place of business
used primarily for making retail sales unless the place of business
is located in an impacted city as defined in section 1728.01 of the
Revised Code or the board of education of the city, local, or
exempted village school district within the territory of which the
place of business is located adopts a resolution waiving the
exclusion of retail facilities under section 5709.634 of the Revised
Code.
(D)
"Vacant facility" means a facility that has been vacant for
at least ninety days immediately preceding the date on which an
agreement is entered into under section 5709.62 or 5709.63 of the
Revised Code.
(E)
"Expand" means to make expenditures to add land, buildings,
machinery, equipment, or other materials, except inventory, to a
facility that equal at least ten per cent of the market value of the
facility prior to such expenditures, as determined for the purposes
of local property taxation.
(F)
"Renovate" means to make expenditures to alter or repair a
facility that equal at least fifty per cent of the market value of
the facility prior to such expenditures, as determined for the
purposes of local property taxation.
(G)
"Occupy" means to make expenditures to alter or repair a
vacant facility equal to at least twenty per cent of the market value
of the facility prior to such expenditures, as determined for the
purposes of local property taxation.
(H)
"Project site" means all or any part of a facility that is
newly constructed, expanded, renovated, or occupied by an enterprise.
(I)
"Project" means any undertaking by an enterprise to
establish a facility or to improve a project site by expansion,
renovation, or occupancy.
(J)
"Position" means the position of one full-time employee
performing a particular set of tasks and duties.
(K)
"Full-time employee" means an individual who is employed
for consideration by an enterprise for at least thirty-five hours a
week, or who renders any other standard of service generally accepted
by custom or specified by contract as full-time employment.
(L)
"New employee" means a full-time employee first employed by
an enterprise at a facility that is a project site after the
enterprise enters an agreement under section 5709.62 or 5709.63 of
the Revised Code. "New employee" does not include an
employee if, immediately prior to being employed by the enterprise,
the employee was employed by an enterprise that is a related member
or predecessor enterprise of that enterprise.
(M)
"Unemployed person" means any person who is totally
unemployed in this state, as that term is defined in division (M) of
section 4141.01 of the Revised Code, for at least ten consecutive
weeks immediately preceding that person's employment at a facility
that is a project site, or who is so unemployed for at least
twenty-six of the fifty-two weeks immediately preceding that person's
employment at such a facility.
(N)
"JTPA eligible employee" means any individual who is
eligible for employment or training under the "Job Training
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as
amended.
(O)
"First used in business" means that the property referred
to has not been used in business in this state by the enterprise that
owns it, or by an enterprise that is a related member or predecessor
enterprise of such an enterprise, other than as inventory, prior to
being used in business at a facility as the result of a project.
(P)
"Training program" means any noncredit training program or
course of study that is offered by any state college or university;
university branch district; community college; technical college;
nonprofit college or university certified under section 1713.02 of
the Revised Code; school district; joint vocational school district;
school registered and authorized to offer programs under section
3332.05 of the Revised Code; an entity administering any federal,
state, or local adult education and training program; or any
enterprise; and that meets all of the following requirements:
(1)
It is approved by the director of
housing
and
development;
(2)
It is established or operated to satisfy the need of a particular
industry or enterprise for skilled or semi-skilled employees;
(3)
An individual is required to complete the course or program before
filling a position at a project site.
(Q)
"Development" means to engage in the process of clearing
and grading land, making, installing, or constructing water
distribution systems, sewers, sewage collection systems, steam, gas,
and electric lines, roads, curbs, gutters, sidewalks, storm drainage
facilities, and construction of other facilities or buildings equal
to at least fifty per cent of the market value of the facility prior
to the expenditures, as determined for the purposes of local property
taxation.
(R)
"Large manufacturing facility" means a single Ohio facility
that employed an average of at least one thousand individuals during
the five calendar years preceding an agreement authorized under
division (C)(3) of section 5709.62 or division (B)(2) of section
5709.63 of the Revised Code. For purposes of this division, both of
the following apply:
(1)
A single Ohio manufacturing facility employed an average of at least
one thousand individuals during the five calendar years preceding
entering into such an agreement if one-fifth of the sum of the number
of employees employed on the highest employment day during each of
the five calendar years equals or exceeds one thousand.
(2)
The highest employment day is the day or days during a calendar year
on which the number of employees employed at a single Ohio
manufacturing facility was greater than on any other day during the
calendar year.
(S)
"Business cycle" means the cycle of business activity
usually regarded as passing through alternating stages of prosperity
and depression.
(T)
"Making retail sales" means the effecting of
point-of-final-purchase transactions at a facility open to the
consuming public, wherein one party is obligated to pay the price and
the other party is obligated to provide a service or to transfer
title to or possession of the item sold.
(U)
"Environmentally contaminated" means that hazardous
substances exist at a facility under conditions that have caused or
would cause the facility to be identified as contaminated by the
state or federal environmental protection agency. These may include
facilities located at sites identified in the master sites list or
similar database maintained by the state environmental protection
agency if the sites have been investigated by the agency and found to
be contaminated.
(V)
"Remediate" means to make expenditures to clean up an
environmentally contaminated facility so that it is no longer
environmentally contaminated that equal at least ten per cent of the
real property market value of the facility prior to such expenditures
as determined for the purposes of property taxation.
(W)
"Related member" has the same meaning as defined in section
5733.042 of the Revised Code without regard to division (B) of that
section, except that it is used with respect to an enterprise rather
than a taxpayer.
(X)
"Predecessor enterprise" means an enterprise from which the
assets or equity of another enterprise has been transferred, which
transfer resulted in the full or partial nonrecognition of gain or
loss, or resulted in a carryover basis, both as determined by rule
adopted by the tax commissioner.
(Y)
"Successor enterprise" means an enterprise to which the
assets or equity of another enterprise has been transferred, which
transfer resulted in the full or partial nonrecognition of gain or
loss, or resulted in a carryover basis, both as determined by rule
adopted by the tax commissioner.
(Z)
"Megaproject," "megaproject operator," and
"megaproject supplier" have the same meanings as in section
122.17 of the Revised Code.
Sec.
5709.62.
(A)
In any municipal corporation that is defined by the United States
office of management and budget as a principal city of a metropolitan
statistical area, the legislative authority of the municipal
corporation may designate one or more areas within its municipal
corporation as proposed enterprise zones. Upon designating an area,
the legislative authority shall petition the director of
housing
and
development
services
for
certification of the area as having the characteristics set forth in
division (A)(1) of section 5709.61 of the Revised Code as amended by
Substitute Senate Bill No. 19 of the 120th general assembly. Except
as otherwise provided in division (E) of this section, on and after
July 1, 1994, legislative authorities shall not enter into agreements
under this section unless the legislative authority has petitioned
the director and the director has certified the zone under this
section as amended by that act; however, all agreements entered into
under this section as it existed prior to July 1, 1994, and the
incentives granted under those agreements shall remain in effect for
the period agreed to under those agreements. Within sixty days after
receiving such a petition, the director shall determine whether the
area has the characteristics set forth in division (A)(1) of section
5709.61 of the Revised Code, and shall forward the findings to the
legislative authority of the municipal corporation. If the director
certifies the area as having those characteristics, and thereby
certifies it as a zone, the legislative authority may enter into an
agreement with an enterprise under division (C) of this section.
(B)
Any enterprise that wishes to enter into an agreement with a
municipal corporation under division (C) of this section shall submit
a proposal to the legislative authority of the municipal corporation
on a form prescribed by the director of
housing
and
development
services
,
together with the application fee established under section 5709.68
of the Revised Code. The form shall require the following
information:
(1)
An estimate of the number of new employees whom the enterprise
intends to hire, or of the number of employees whom the enterprise
intends to retain, within the zone at a facility that is a project
site, and an estimate of the amount of payroll of the enterprise
attributable to these employees;
(2)
An estimate of the amount to be invested by the enterprise to
establish, expand, renovate, or occupy a facility, including
investment in new buildings, additions or improvements to existing
buildings, machinery, equipment, furniture, fixtures, and inventory;
(3)
A listing of the enterprise's current investment, if any, in a
facility as of the date of the proposal's submission.
The
enterprise shall review and update the listings required under this
division to reflect material changes, and any agreement entered into
under division (C) of this section shall set forth final estimates
and listings as of the time the agreement is entered into. The
legislative authority may, on a separate form and at any time,
require any additional information necessary to determine whether an
enterprise is in compliance with an agreement and to collect the
information required to be reported under section 5709.68 of the
Revised Code.
(C)
Upon receipt and investigation of a proposal under division (B) of
this section, if the legislative authority finds that the enterprise
submitting the proposal is qualified by financial responsibility and
business experience to create and preserve employment opportunities
in the zone and improve the economic climate of the municipal
corporation, the legislative authority may do one of the following:
(1)
Enter into an agreement with the enterprise under which the
enterprise agrees to establish, expand, renovate, or occupy a
facility and hire new employees, or preserve employment opportunities
for existing employees, in return for one or more of the following
incentives:
(a)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, up to seventy-five per cent, of the assessed
value of tangible personal property first used in business at the
project site as a result of the agreement. If an exemption for
inventory is specifically granted in the agreement pursuant to this
division, the exemption applies to inventory required to be listed
pursuant to sections 5711.15 and 5711.16 of the Revised Code, except
that, in the instance of an expansion or other situations in which an
enterprise was in business at the facility prior to the establishment
of the zone, the inventory that is exempt is that amount or value of
inventory in excess of the amount or value of inventory required to
be listed in the personal property tax return of the enterprise in
the return for the tax year in which the agreement is entered into.
(b)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, up to seventy-five per cent, of the increase in
the assessed valuation of real property constituting the project site
subsequent to formal approval of the agreement by the legislative
authority;
(c)
Provision for a specified number of years, not to exceed fifteen, of
any optional services or assistance that the municipal corporation is
authorized to provide with regard to the project site.
(2)
Enter into an agreement under which the enterprise agrees to
remediate an environmentally contaminated facility, to spend an
amount equal to at least two hundred fifty per cent of the true value
in money of the real property of the facility prior to remediation as
determined for the purposes of property taxation to establish,
expand, renovate, or occupy the remediated facility, and to hire new
employees or preserve employment opportunities for existing employees
at the remediated facility, in return for one or more of the
following incentives:
(a)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, not to exceed fifty per cent, of the assessed
valuation of the real property of the facility prior to remediation;
(b)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, not to exceed one hundred per cent, of the
increase in the assessed valuation of the real property of the
facility during or after remediation;
(c)
The incentive under division (C)(1)(a) of this section, except that
the percentage of the assessed value of such property exempted from
taxation shall not exceed one hundred per cent;
(d)
The incentive under division (C)(1)(c) of this section.
(3)
Enter into an agreement with an enterprise that plans to purchase and
operate a large manufacturing facility that has ceased operation or
announced its intention to cease operation, in return for exemption
for a specified number of years, not to exceed fifteen, of a
specified portion, up to one hundred per cent, of the assessed value
of tangible personal property used in business at the project site as
a result of the agreement, or of the assessed valuation of real
property constituting the project site, or both;
(4)
Enter into an agreement with an enterprise that either is the owner
of real property constituting the site of a megaproject or is a
megaproject supplier in return for an exemption for a specified
number of years, not to exceed thirty, of a specified portion, up to
one hundred per cent, of the increase in the assessed value of real
property constituting the site of a megaproject or real property
owned and occupied by the megaproject supplier, respectively,
beginning after the tax year in which the agreement is formally
approved by the legislative authority.
(D)(1)
Notwithstanding divisions (C)(1)(a) and (b) of this section, the
portion of the assessed value of tangible personal property or of the
increase in the assessed valuation of real property exempted from
taxation under those divisions may exceed seventy-five per cent in
any year for which that portion is exempted if the average percentage
exempted for all years in which the agreement is in effect does not
exceed sixty per cent, or if the board of education of the city,
local, or exempted village school district within the territory of
which the property is or will be located approves a percentage in
excess of seventy-five per cent.
(2)
Notwithstanding any provision of the Revised Code to the contrary,
the exemptions described in divisions (C)(1)(a), (b), and (c),
(C)(2)(a), (b), and (c), and (C)(3) of this section may be for up to
fifteen years and the exemption described in division (C)(4) of this
section may be for up to thirty years if the board of education of
the city, local, or exempted village school district within the
territory of which the property is or will be located approves a
number of years in excess of ten.
(3)
For the purpose of obtaining the approval of a city, local, or
exempted village school district under division (D)(1) or (2) of this
section, the legislative authority shall deliver to the board of
education a notice not later than forty-five days prior to approving
the agreement, excluding Saturdays, Sundays, and legal holidays as
defined in section 1.14 of the Revised Code. The notice shall state
the percentage to be exempted, an estimate of the true value of the
property to be exempted, and the number of years the property is to
be exempted. The board of education, by resolution adopted by a
majority of the board, shall approve or disapprove the agreement and
certify a copy of the resolution to the legislative authority not
later than fourteen days prior to the date stipulated by the
legislative authority as the date upon which approval of the
agreement is to be formally considered by the legislative authority.
The board of education may include in the resolution conditions under
which the board would approve the agreement, including the execution
of an agreement to compensate the school district under division (B)
of section 5709.82 of the Revised Code. The legislative authority may
approve the agreement at any time after the board of education
certifies its resolution approving the agreement to the legislative
authority, or, if the board approves the agreement conditionally, at
any time after the conditions are agreed to by the board and the
legislative authority. If an agreement is negotiated between the
legislative authority and the board to compensate the school district
for all or part of the taxes exempted, the legislative authority
shall compensate the joint vocational school district within which
the property is located at the same rate and under the same terms
received by the city, local, or exempted village school district.
If
a board of education has adopted a resolution waiving its right to
approve agreements and the resolution remains in effect, approval of
an agreement by the board is not required under this division. If a
board of education has adopted a resolution allowing a legislative
authority to deliver the notice required under this division fewer
than forty-five business days prior to the legislative authority's
approval of the agreement, the legislative authority shall deliver
the notice to the board not later than the number of days prior to
such approval as prescribed by the board in its resolution. If a
board of education adopts a resolution waiving its right to approve
agreements or shortening the notification period, the board shall
certify a copy of the resolution to the legislative authority. If the
board of education rescinds such a resolution, it shall certify
notice of the rescission to the legislative authority.
(4)
The legislative authority shall comply with section 5709.83 of the
Revised Code unless the board of education has adopted a resolution
under that section waiving its right to receive such notice.
(E)
This division applies to zones certified by the director of
housing
and
development
services
under
this section prior to July 22, 1994.
The
legislative authority that designated a zone to which this division
applies may enter into an agreement with an enterprise if the
legislative authority finds that the enterprise satisfies one of the
criteria described in divisions (E)(1) to (5) of this section:
(1)
The enterprise currently has no operations in this state and, subject
to approval of the agreement, intends to establish operations in the
zone;
(2)
The enterprise currently has operations in this state and, subject to
approval of the agreement, intends to establish operations at a new
location in the zone that would not result in a reduction in the
number of employee positions at any of the enterprise's other
locations in this state;
(3)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in another state, to the zone;
(4)
The enterprise, subject to approval of the agreement, intends to
expand operations at an existing site in the zone that the enterprise
currently operates;
(5)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in this state, to the zone,
and the director of
housing
and
development
services
has
issued a waiver for the enterprise under division (B) of section
5709.633 of the Revised Code.
The
agreement shall require the enterprise to agree to establish, expand,
renovate, or occupy a facility in the zone and hire new employees, or
preserve employment opportunities for existing employees, in return
for one or more of the incentives described in division (C) of this
section.
(F)
All agreements entered into under this section shall be in the form
prescribed under section 5709.631 of the Revised Code. After an
agreement is entered into under this section, if the legislative
authority revokes its designation of a zone, or if the director of
housing
and
development
services
revokes
a zone's certification, any entitlements granted under the agreement
shall continue for the number of years specified in the agreement.
(G)
Except as otherwise provided in this division, an agreement entered
into under this section shall require that the enterprise pay an
annual fee equal to the greater of one per cent of the dollar value
of incentives offered under the agreement or five hundred dollars;
provided, however, that if the value of the incentives exceeds two
hundred fifty thousand dollars, the fee shall not exceed two thousand
five hundred dollars. The fee shall be payable to the legislative
authority once per year for each year the agreement is effective on
the days and in the form specified in the agreement. Fees paid shall
be deposited in a special fund created for such purpose by the
legislative authority and shall be used by the legislative authority
exclusively for the purpose of complying with section 5709.68 of the
Revised Code and by the tax incentive review council created under
section 5709.85 of the Revised Code exclusively for the purposes of
performing the duties prescribed under that section. The legislative
authority may waive or reduce the amount of the fee charged against
an enterprise, but such a waiver or reduction does not affect the
obligations of the legislative authority or the tax incentive review
council to comply with section 5709.68 or 5709.85 of the Revised
Code.
(H)
When an agreement is entered into pursuant to this section, the
legislative authority authorizing the agreement shall forward a copy
of the agreement to the director of
housing
and
development
services
and
to the tax commissioner within fifteen days after the agreement is
entered into. If any agreement includes terms not provided for in
section 5709.631 of the Revised Code affecting the revenue of a city,
local, exempted village, or joint vocational school district or
causing revenue to be forgone by the district, including any
compensation to be paid to the school district pursuant to section
5709.82 of the Revised Code, those terms also shall be forwarded in
writing to the director of
housing
and
development
services
along
with the copy of the agreement forwarded under this division.
(I)
After an agreement is entered into, the enterprise shall file with
each personal property tax return required to be filed, or annual
report required to be filed under section 5727.08 of the Revised
Code, while the agreement is in effect, an informational return, on a
form prescribed by the tax commissioner for that purpose, setting
forth separately the property, and related costs and values, exempted
from taxation under the agreement.
(J)
Enterprises may agree to give preference to residents of the zone
within which the agreement applies relative to residents of this
state who do not reside in the zone when hiring new employees under
the agreement.
(K)
An agreement entered into under this section may include a provision
requiring the enterprise to create one or more temporary internship
positions for students enrolled in a course of study at a school or
other educational institution in the vicinity, and to create a
scholarship or provide another form of educational financial
assistance for students holding such a position in exchange for the
student's commitment to work for the enterprise at the completion of
the internship.
(L)
The tax commissioner's authority in determining the accuracy of any
exemption granted by an agreement entered into under this section is
limited to divisions (C)(1)(a) and (b), (C)(2)(a), (b), and (c),
(C)(3) and (4), (D), and (I) of this section and divisions (B)(1) to
(10) of section 5709.631 of the Revised Code and, as authorized by
law, to enforcing any modification to, or revocation of, that
agreement by the legislative authority of a municipal corporation or
the director of
housing
and
development
services
.
Sec.
5709.63.
(A)
With the consent of the legislative authority of each affected
municipal corporation or of a board of township trustees, a board of
county commissioners may, in the manner set forth in section 5709.62
of the Revised Code, designate one or more areas in one or more
municipal corporations or in unincorporated areas of the county as
proposed enterprise zones. A board of county commissioners may
designate no more than one area within a township, or within adjacent
townships, as a proposed enterprise zone. The board shall petition
the director of
housing
and
development
services
for
certification of the area as having the characteristics set forth in
division (A)(1) or (2) of section 5709.61 of the Revised Code as
amended by Substitute Senate Bill No. 19 of the 120th general
assembly. Except as otherwise provided in division (D) of this
section, on and after July 1, 1994, boards of county commissioners
shall not enter into agreements under this section unless the board
has petitioned the director and the director has certified the zone
under this section as amended by that act; however, all agreements
entered into under this section as it existed prior to July 1, 1994,
and the incentives granted under those agreements shall remain in
effect for the period agreed to under those agreements. The director
shall make the determination in the manner provided under section
5709.62 of the Revised Code.
Any
enterprise wishing to enter into an agreement with the board under
division (B) or (D) of this section shall submit a proposal to the
board on the form and accompanied by the application fee prescribed
under division (B) of section 5709.62 of the Revised Code. The
enterprise shall review and update the estimates and listings
required by the form in the manner required under that division. The
board may, on a separate form and at any time, require any additional
information necessary to determine whether an enterprise is in
compliance with an agreement and to collect the information required
to be reported under section 5709.68 of the Revised Code.
(B)
If the board of county commissioners finds that an enterprise
submitting a proposal is qualified by financial responsibility and
business experience to create and preserve employment opportunities
in the zone and to improve the economic climate of the municipal
corporation or municipal corporations or the unincorporated areas in
which the zone is located and to which the proposal applies, the
board, with the consent of the legislative authority of each affected
municipal corporation or of the board of township trustees, may do
one of the following:
(1)
Enter into an agreement with the enterprise under which the
enterprise agrees to establish, expand, renovate, or occupy a
facility in the zone and hire new employees, or preserve employment
opportunities for existing employees, in return for the following
incentives:
(a)
When the facility is located in a municipal corporation, the board
may enter into an agreement for one or more of the incentives
provided in division (C) of section 5709.62 of the Revised Code,
subject to division (D) of that section;
(b)
When the facility is located in an unincorporated area, the board may
enter into an agreement for one or more of the following incentives:
(i)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, up to sixty per cent, of the assessed value of
tangible personal property first used in business at a project site
as a result of the agreement. If an exemption for inventory is
specifically granted in the agreement pursuant to this division, the
exemption applies to inventory required to be listed pursuant to
sections 5711.15 and 5711.16 of the Revised Code, except, in the
instance of an expansion or other situations in which an enterprise
was in business at the facility prior to the establishment of the
zone, the inventory that is exempt is that amount or value of
inventory in excess of the amount or value of inventory required to
be listed in the personal property tax return of the enterprise in
the return for the tax year in which the agreement is entered into.
(ii)
Exemption for a specified number of years, not to exceed fifteen, of
a specified portion, up to sixty per cent, of the increase in the
assessed valuation of real property constituting the project site
subsequent to formal approval of the agreement by the board;
(iii)
Provision for a specified number of years, not to exceed fifteen, of
any optional services or assistance the board is authorized to
provide with regard to the project site;
(iv)
The incentive described in division (C)(2) of section 5709.62 of the
Revised Code.
(2)
Enter into an agreement with an enterprise that plans to purchase and
operate a large manufacturing facility that has ceased operation or
has announced its intention to cease operation, in return for
exemption for a specified number of years, not to exceed fifteen, of
a specified portion, up to one hundred per cent, of tangible personal
property used in business at the project site as a result of the
agreement, or of real property constituting the project site, or
both;
(3)
Enter into an agreement with an enterprise that either is the owner
of real property constituting the site of a megaproject or is a
megaproject supplier in return for an exemption for a specified
number of years, not to exceed thirty, of a specified portion, up to
one hundred per cent, of the increase in the assessed value of real
property constituting the site of a megaproject or real property
owned and occupied by the megaproject supplier, respectively,
beginning after the tax year in which the agreement is formally
approved by the legislative authority.
(C)(1)(a)
Notwithstanding divisions (B)(1)(b)(i) and (ii) of this section, the
portion of the assessed value of tangible personal property or of the
increase in the assessed valuation of real property exempted from
taxation under those divisions may exceed sixty per cent in any year
for which that portion is exempted if the average percentage exempted
for all years in which the agreement is in effect does not exceed
fifty per cent, or if the board of education of the city, local, or
exempted village school district within the territory of which the
property is or will be located approves a percentage in excess of
sixty per cent.
(b)
Notwithstanding any provision of the Revised Code to the contrary,
the exemptions described in divisions (B)(1)(b)(i), (ii), (iii), and
(iv) and (B)(2) of this section may be for up to fifteen years and
the exemption described in division (B)(3) of this section may be for
up to thirty years if the board of education of the city, local, or
exempted village school district within the territory of which the
property is or will be located approves a number of years in excess
of ten.
(c)
For the purpose of obtaining the approval of a city, local, or
exempted village school district under division (C)(1)(a) or (b) of
this section, the board of county commissioners shall deliver to the
board of education a notice not later than forty-five days prior to
approving the agreement, excluding Saturdays, Sundays, and legal
holidays as defined in section 1.14 of the Revised Code. The notice
shall state the percentage to be exempted, an estimate of the true
value of the property to be exempted, and the number of years the
property is to be exempted. The board of education, by resolution
adopted by a majority of the board, shall approve or disapprove the
agreement and certify a copy of the resolution to the board of county
commissioners not later than fourteen days prior to the date
stipulated by the board of county commissioners as the date upon
which approval of the agreement is to be formally considered by the
board of county commissioners. The board of education may include in
the resolution conditions under which the board would approve the
agreement, including the execution of an agreement to compensate the
school district under division (B) of section 5709.82 of the Revised
Code. The board of county commissioners may approve the agreement at
any time after the board of education certifies its resolution
approving the agreement to the board of county commissioners, or, if
the board of education approves the agreement conditionally, at any
time after the conditions are agreed to by the board of education and
the board of county commissioners. If an agreement is negotiated
between the legislative authority and the board to compensate the
school district for all or part of the taxes exempted, the
legislative authority shall compensate the joint vocational school
district within which the property is located at the same rate and
under the same terms received by the city, local, or exempted village
school district.
If
a board of education has adopted a resolution waiving its right to
approve agreements and the resolution remains in effect, approval of
an agreement by the board of education is not required under division
(C) of this section. If a board of education has adopted a resolution
allowing a board of county commissioners to deliver the notice
required under this division fewer than forty-five business days
prior to approval of the agreement by the board of county
commissioners, the board of county commissioners shall deliver the
notice to the board of education not later than the number of days
prior to such approval as prescribed by the board of education in its
resolution. If a board of education adopts a resolution waiving its
right to approve agreements or shortening the notification period,
the board of education shall certify a copy of the resolution to the
board of county commissioners. If the board of education rescinds
such a resolution, it shall certify notice of the rescission to the
board of county commissioners.
(2)
The board of county commissioners shall comply with section 5709.83
of the Revised Code unless the board of education has adopted a
resolution under that section waiving its right to receive such
notice.
(D)
This division applies to zones certified by the director of
housing
and
development
services
under
this section prior to July 22, 1994.
With
the consent of the legislative authority of each affected municipal
corporation or board of township trustees of each affected township,
the board of county commissioners that designated a zone to which
this division applies may enter into an agreement with an enterprise
if the board finds that the enterprise satisfies one of the criteria
described in divisions (D)(1) to (5) of this section:
(1)
The enterprise currently has no operations in this state and, subject
to approval of the agreement, intends to establish operations in the
zone;
(2)
The enterprise currently has operations in this state and, subject to
approval of the agreement, intends to establish operations at a new
location in the zone that would not result in a reduction in the
number of employee positions at any of the enterprise's other
locations in this state;
(3)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in another state, to the zone;
(4)
The enterprise, subject to approval of the agreement, intends to
expand operations at an existing site in the zone that the enterprise
currently operates;
(5)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in this state, to the zone,
and the director of
housing
and
development
services
has
issued a waiver for the enterprise under division (B) of section
5709.633 of the Revised Code.
The
agreement shall require the enterprise to agree to establish, expand,
renovate, or occupy a facility in the zone and hire new employees, or
preserve employment opportunities for existing employees, in return
for one or more of the incentives described in division (B) of this
section.
(E)
All agreements entered into under this section shall be in the form
prescribed under section 5709.631 of the Revised Code. After an
agreement under this section is entered into, if the board of county
commissioners revokes its designation of a zone, or if the director
of
housing
and
development
services
revokes
a zone's certification, any entitlements granted under the agreement
shall continue for the number of years specified in the agreement.
(F)
Except as otherwise provided in this division, an agreement entered
into under this section shall require that the enterprise pay an
annual fee equal to the greater of one per cent of the dollar value
of incentives offered under the agreement or five hundred dollars;
provided, however, that if the value of the incentives exceeds two
hundred fifty thousand dollars, the fee shall not exceed two thousand
five hundred dollars. The fee shall be payable to the board of county
commissioners once per year for each year the agreement is effective
on the days and in the form specified in the agreement. Fees paid
shall be deposited in a special fund created for such purpose by the
board and shall be used by the board exclusively for the purpose of
complying with section 5709.68 of the Revised Code and by the tax
incentive review council created under section 5709.85 of the Revised
Code exclusively for the purposes of performing the duties prescribed
under that section. The board may waive or reduce the amount of the
fee charged against an enterprise, but such waiver or reduction does
not affect the obligations of the board or the tax incentive review
council to comply with section 5709.68 or 5709.85 of the Revised
Code, respectively.
(G)
With the approval of the legislative authority of a municipal
corporation or the board of township trustees of a township in which
a zone is designated under division (A) of this section, the board of
county commissioners may delegate to that legislative authority or
board any powers and duties of the board of county commissioners to
negotiate and administer agreements with regard to that zone under
this section.
(H)
When an agreement is entered into pursuant to this section, the board
of county commissioners authorizing the agreement or the legislative
authority or board of township trustees that negotiates and
administers the agreement shall forward a copy of the agreement to
the director of
housing
and
development
services
and
to the tax commissioner within fifteen days after the agreement is
entered into. If any agreement includes terms not provided for in
section 5709.631 of the Revised Code affecting the revenue of a city,
local, exempted village, or joint vocational school district or
causing revenue to be foregone by the district, including any
compensation to be paid to the school district pursuant to section
5709.82 of the Revised Code, those terms also shall be forwarded in
writing to the director of
housing
and
development
services
along
with the copy of the agreement forwarded under this division.
(I)
After an agreement is entered into, the enterprise shall file with
each personal property tax return required to be filed, or annual
report that is required to be filed under section 5727.08 of the
Revised Code, while the agreement is in effect, an informational
return, on a form prescribed by the tax commissioner for that
purpose, setting forth separately the property, and related costs and
values, exempted from taxation under the agreement.
(J)
Enterprises may agree to give preference to residents of the zone
within which the agreement applies relative to residents of this
state who do not reside in the zone when hiring new employees under
the agreement.
(K)
An agreement entered into under this section may include a provision
requiring the enterprise to create one or more temporary internship
positions for students enrolled in a course of study at a school or
other educational institution in the vicinity, and to create a
scholarship or provide another form of educational financial
assistance for students holding such a position in exchange for the
student's commitment to work for the enterprise at the completion of
the internship.
(L)
The tax commissioner's authority in determining the accuracy of any
exemption granted by an agreement entered into under this section is
limited to divisions (B)(1)(b)(i) and (ii), (B)(2) and (3), (C), and
(I) of this section, division (B)(1)(b)(iv) of this section as it
pertains to divisions (C)(2)(a), (b), and (c) of section 5709.62 of
the Revised Code, and divisions (B)(1) to (10) of section 5709.631 of
the Revised Code and, as authorized by law, to enforcing any
modification to, or revocation of, that agreement by the board of
county commissioners or the director of
housing
and
development
services
or,
if the board's powers and duties are delegated under division (G) of
this section, by the legislative authority of a municipal corporation
or board of township trustees.
Sec.
5709.631.
Each
agreement entered into under sections 5709.62, 5709.63, and 5709.632
of the Revised Code on or after April 1, 1994, shall be in writing
and shall include all of the information and statements prescribed by
this section. Agreements may include terms not prescribed by this
section, but such terms shall in no way derogate from the information
and statements prescribed by this section.
(A)
Each agreement shall include the following information:
(1)
The names of all parties to the agreement;
(2)
A description of the investments to be made by the applicant
enterprise or by another party at the facility whether or not the
investments are exempted from taxation, including existing or new
building size and cost thereof; the value of machinery, equipment,
furniture, and fixtures, including an itemization of the value of
machinery, equipment, furniture, and fixtures used at another
location in this state prior to the agreement and relocated or to be
relocated from that location to the facility and the value of
machinery, equipment, furniture, and fixtures at the facility prior
to the execution of the agreement that will not be exempted from
taxation; the value of inventory at the facility, including an
itemization of the value of inventory held at another location in
this state prior to the agreement and relocated or to be relocated
from that location to the facility, and the value of inventory held
at the facility prior to the execution of the agreement that will not
be exempted from taxation;
(3)
The scheduled starting and completion dates of investments made in
building, machinery, equipment, furniture, fixtures, and inventory;
(4)
Estimates of the number of employee positions to be created each year
of the agreement and of the number of employee positions retained by
the applicant enterprise due to the project, itemized as to the
number of full-time, part-time, permanent, and temporary positions;
(5)
Estimates of the dollar amount of payroll attributable to the
positions set forth in division (A)(4) of this section, similarly
itemized;
(6)
The number of employee positions, if any, at the project site and at
any other location in the state at the time the agreement is
executed, itemized as to the number of full-time, part-time,
permanent, and temporary positions.
(B)
Each agreement shall set forth the following information and
incorporate the following statements:
(1)
A description of real property to be exempted from taxation under the
agreement, the percentage of the assessed valuation of the real
property exempted from taxation, and the period for which the
exemption is granted, accompanied by the statement: "The
exemption commences the first year for which the real property would
first be taxable were that property not exempted from taxation. No
exemption shall commence after
..........
(insert date) nor extend beyond
..........
(insert date)." The tax commissioner shall adopt rules
prescribing the form the description of such property shall assume to
ensure that the property to be exempted from taxation under the
agreement is distinguishable from property that is not to be exempted
under that agreement.
(2)
A description of tangible personal property to be exempted from
taxation under the agreement, the percentage of the assessed value of
the tangible personal property exempted from taxation, and the period
for which the exemption is granted, accompanied by the statement:
"The minimum investment for tangible personal property to
qualify for the exemption is $.......... (insert dollar amount) to
purchase machinery and equipment first used in business at the
facility as a result of the project, $.......... (insert dollar
amount) for furniture and fixtures and other noninventory personal
property first used in business at the facility as a result of the
project, and $.......... (insert dollar amount) for new inventory.
The maximum investment for tangible personal property to qualify for
the exemption is $.......... (insert dollar amount) to purchase
machinery and equipment first used in business at the facility as a
result of the project, $.......... (insert dollar amount) for
furniture and fixtures and other noninventory personal property first
used in business at the facility as a result of the project, and
$.......... (insert dollar amount) for new inventory. The exemption
commences the first year for which the tangible personal property
would first be taxable were that property not exempted from taxation.
No exemption shall commence after tax return year
..........
(insert year) nor extend beyond tax return year
..........
(insert year). In no instance shall any tangible personal property be
exempted from taxation for more than ten return years unless, under
division (D)(2) of section 5709.62 or under division (C)(1)(b) of
section 5709.63 of the Revised Code, the board of education approves
exemption for a number of years in excess of ten, in which case the
tangible personal property may be exempted from taxation for that
number of years, not to exceed fifteen return years." No
exemption shall be allowed for any type of tangible personal property
if the total investment is less than the minimum dollar amount
specified for that type of property. If, for a type of tangible
personal property, there are no minimum or maximum investment dollar
amounts specified in the statement or the dollar amounts are
designated in the statement as not applicable, the exemption shall
apply to the total cost of that type of tangible personal property
first used in business at the facility as a result of the project.
The tax commissioner shall adopt rules prescribing the form the
description of such property shall assume to ensure that the property
to be exempted from taxation under the agreement is distinguishable
from property that is not to be exempted under that agreement.
(3)
".......... (insert name of enterprise) shall pay such real and
tangible personal property taxes as are not exempted under this
agreement and are charged against such property and shall file all
tax reports and returns as required by law. If
..........
(insert name of enterprise) fails to pay such taxes or file such
returns and reports, all incentives granted under this agreement are
rescinded beginning with the year for which such taxes are charged or
such reports or returns are required to be filed and thereafter."
(4)
".......... (insert name of enterprise) hereby certifies that at
the time this agreement is executed,
..........
(insert name of enterprise) does not owe any delinquent real or
tangible personal property taxes to any taxing authority of the State
of Ohio, and does not owe delinquent taxes for which
..........
(insert name of enterprise) is liable under Chapter 5727., 5733.,
5735., 5739., 5741., 5743., 5747., or 5753. of the Revised Code, or,
if such delinquent taxes are owed,
..........
(insert name of enterprise) currently is paying the delinquent taxes
pursuant to a delinquent tax contract enforceable by the State of
Ohio or an agent or instrumentality thereof, has filed a petition in
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has
been filed against
..........
(insert name of enterprise). For the purposes of the certification,
delinquent taxes are taxes that remain unpaid on the latest day
prescribed for payment without penalty under the chapter of the
Revised Code governing payment of those taxes."
(5)
".......... (insert name of municipal corporation or county)
shall perform such acts as are reasonably necessary or appropriate to
effect, claim, reserve, and maintain exemptions from taxation granted
under this agreement including, without limitation, joining in the
execution of all documentation and providing any necessary
certificates required in connection with such exemptions."
(6)
"If for any reason the enterprise zone designation expires, the
Director of the Ohio Department of
Housing
and
Development
revokes certification of the zone, or
..........
(insert name of municipal corporation or county) revokes the
designation of the zone, entitlements granted under this agreement
shall continue for the number of years specified under this
agreement, unless
..........
(insert name of enterprise) materially fails to fulfill its
obligations under this agreement and
..........
(insert name of municipal corporation or county) terminates or
modifies the exemptions from taxation granted under this agreement."
(7)
"If
..........
(insert name of enterprise) materially fails to fulfill its
obligations under this agreement, other than with respect to the
number of employee positions estimated to be created or retained
under this agreement, or if
..........
(insert name of municipal corporation or county) determines that the
certification as to delinquent taxes required by this agreement is
fraudulent,
..........
(insert name of municipal corporation or county) may terminate or
modify the exemptions from taxation granted under this agreement."
(8)
".......... (insert name of enterprise) shall provide to the
proper tax incentive review council any information reasonably
required by the council to evaluate the enterprise's compliance with
the agreement, including returns or annual reports filed pursuant to
section 5711.02 or 5727.08 of the Ohio Revised Code if requested by
the council."
(9)
".......... (insert name of enterprise) and
..........
(insert name of municipal corporation or county) acknowledge that
this agreement must be approved by formal action of the legislative
authority of
..........
(insert name of municipal corporation or county) as a condition for
the agreement to take effect. This agreement takes effect upon such
approval."
(10)
"This agreement is not transferable or assignable without the
express, written approval of
..........
(insert name of municipal corporation or county)."
(11)
"Exemptions from taxation granted under this agreement shall be
revoked if it is determined that
...............
(insert name of enterprise), any successor enterprise, or any related
member (as those terms are defined in section 5709.61 of the Ohio
Revised Code) has violated the prohibition against entering into this
agreement under division (C) of section 3735.671 or section 5709.62,
5709.63, or 5709.632 of the Ohio Revised Code prior to the time
prescribed by that division or either of those sections."
(12)
"In any three-year period during which this agreement is in
effect, if the actual number of employee positions created or
retained by........ (insert name of enterprise) is not equal to or
greater than seventy-five per cent of the number of employee
positions estimated to be created or retained under this agreement
during that three-year period,........ (insert name of enterprise)
shall repay the amount of taxes on property that would have been
payable had the property not been exempted from taxation under this
agreement during that three-year period. In addition, the.....
(insert name of municipal corporation or county) may terminate or
modify the exemptions from taxation granted under this agreement."
(13)
If the enterprise is the owner of real property constituting the site
of a megaproject or is a megaproject supplier, both of the following:
(a)
A requirement that the enterprise annually certify to the legislative
authority whether the megaproject operator or megaproject supplier,
as applicable, holds a certificate issued under division (D)(7) of
section 122.17 of the Revised Code on the first day of the current
tax year;
(b)
A provision authorizing the legislative authority to terminate the
exemption for current and subsequent tax years if the megaproject
operator or megaproject supplier, as applicable, does not hold a
certificate issued under division (D)(7) of section 122.17 of the
Revised Code on the first day of the current tax year.
The
statement described in division (B)(7) of this section may include
the following statement, appended at the end of the statement: "and
may require the repayment of the amount of taxes that would have been
payable had the property not been exempted from taxation under this
agreement." If the agreement includes a statement requiring
repayment of exempted taxes, it also may authorize the legislative
authority to secure repayment of such taxes by a lien on the exempted
property in the amount required to be repaid. Such a lien on exempted
real property shall attach, and may be perfected, collected, and
enforced, in the same manner as a mortgage lien on real property, and
shall otherwise have the same force and effect as a mortgage lien on
real property. Notwithstanding section 5719.01 of the Revised Code,
such a lien on exempted tangible personal property shall attach, and
may be perfected, collected, and enforced, in the same manner as a
security interest in goods under Chapter 1309. of the Revised Code,
and shall otherwise have the same force and effect as such a security
interest.
(C)
If the director of
housing
and
development
had to issue a waiver under section 5709.633 of the Revised Code as a
condition for the agreement to be executed, the agreement shall
include the following statement:
"Continuation
of this agreement is subject to the validity of the circumstance upon
which
..........
(insert name of enterprise) applied for, and the Director of the Ohio
Department of
Housing
and
Development
issued, the waiver pursuant to section 5709.633 of the Ohio Revised
Code. If, after formal approval of this agreement by
..........
(insert name of municipal corporation or county), the Director or
.............
(insert name of municipal corporation or county) discovers that such
a circumstance did not exist,
...........
(insert name of enterprise) shall be deemed to have materially failed
to comply with this agreement."
If
the director issued a waiver on the basis of the circumstance
described in division (B)(3) of section 5709.633 of the Ohio Revised
Code, the conditions enumerated in divisions (B)(3)(a)(i) and (ii) or
divisions (B)(3)(b)(i) and (ii) of that section shall be incorporated
in the information described in divisions (A)(2), (3), and (4) of
this section.
Sec.
5709.632.
(A)(1)
The legislative authority of a municipal corporation defined by the
United States office of management and budget as a principal city of
a metropolitan statistical area may, in the manner set forth in
section 5709.62 of the Revised Code, designate one or more areas in
the municipal corporation as a proposed enterprise zone.
(2)
With the consent of the legislative authority of each affected
municipal corporation or of a board of township trustees, a board of
county commissioners may, in the manner set forth in section 5709.62
of the Revised Code, designate one or more areas in one or more
municipal corporations or in unincorporated areas of the county as
proposed urban jobs and enterprise zones, except that a board of
county commissioners may designate no more than one area within a
township, or within adjacent townships, as a proposed urban jobs and
enterprise zone.
(3)
The legislative authority or board of county commissioners may
petition the director of
housing
and
development
services
for
certification of the area as having the characteristics set forth in
division (A)(3) of section 5709.61 of the Revised Code. Within sixty
days after receiving such a petition, the director shall determine
whether the area has the characteristics set forth in that division
and forward the findings to the legislative authority or board of
county commissioners. If the director certifies the area as having
those characteristics and thereby certifies it as a zone, the
legislative authority or board may enter into agreements with
enterprises under division (B) of this section. Any enterprise
wishing to enter into an agreement with a legislative authority or
board of county commissioners under this section and satisfying one
of the criteria described in divisions (B)(1) to (5) of this section
shall submit a proposal to the legislative authority or board on the
form prescribed under division (B) of section 5709.62 of the Revised
Code and shall review and update the estimates and listings required
by the form in the manner required under that division. The
legislative authority or board may, on a separate form and at any
time, require any additional information necessary to determine
whether an enterprise is in compliance with an agreement and to
collect the information required to be reported under section 5709.68
of the Revised Code.
(B)
Prior to entering into an agreement with an enterprise, the
legislative authority or board of county commissioners shall
determine whether the enterprise submitting the proposal is qualified
by financial responsibility and business experience to create and
preserve employment opportunities in the zone and to improve the
economic climate of the municipal corporation or municipal
corporations or the unincorporated areas in which the zone is located
and to which the proposal applies, and whether the enterprise
satisfies one of the following criteria:
(1)
The enterprise currently has no operations in this state and, subject
to approval of the agreement, intends to establish operations in the
zone;
(2)
The enterprise currently has operations in this state and, subject to
approval of the agreement, intends to establish operations at a new
location in the zone that would not result in a reduction in the
number of employee positions at any of the enterprise's other
locations in this state;
(3)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in another state, to the zone;
(4)
The enterprise, subject to approval of the agreement, intends to
expand operations at an existing site in the zone that the enterprise
currently operates;
(5)
The enterprise, subject to approval of the agreement, intends to
relocate operations, currently located in this state, to the zone,
and the director of
housing
and
development
services
has
issued a waiver for the enterprise under division (B) of section
5709.633 of the Revised Code.
(C)
If the legislative authority or board determines that the enterprise
is so qualified and satisfies one of the criteria described in
divisions (B)(1) to (5) of this section, the legislative authority or
board may, after complying with section 5709.83 of the Revised Code
and, in the case of a board of commissioners, with the consent of the
legislative authority of each affected municipal corporation or of
the board of township trustees, enter into an agreement with the
enterprise under which the enterprise agrees to establish, expand,
renovate, or occupy a facility in the zone and hire new employees, or
preserve employment opportunities for existing employees, in return
for the following incentives:
(1)
When the facility is located in a municipal corporation, a
legislative authority or board of commissioners may enter into an
agreement for one or more of the incentives provided in divisions
(C)(1), (2), and (3) of section 5709.62 of the Revised Code, subject
to division (D) of that section, or for the incentive provided in
division (C)(4) of that section if the enterprise is the owner of
real property constituting the site of a megaproject or is a
megaproject supplier
;
.
(2)
When the facility is located in an unincorporated area, a board of
commissioners may enter into an agreement for one or more of the
incentives provided in divisions (B)(1)(b) and (B)(2) of section
5709.63 of the Revised Code, subject to division (C) of that section,
or for the incentive provided in division (B)(3) of that section if
the enterprise is the owner of real property constituting the site of
a megaproject or is a megaproject supplier.
(D)
All agreements entered into under this section shall be in the form
prescribed under section 5709.631 of the Revised Code. After an
agreement under this section is entered into, if the legislative
authority or board of county commissioners revokes its designation of
the zone, or if the director of
housing
and
development
services
revokes
the zone's certification, any entitlements granted under the
agreement shall continue for the number of years specified in the
agreement.
(E)
Except as otherwise provided in this division, an agreement entered
into under this section shall require that the enterprise pay an
annual fee equal to the greater of one per cent of the dollar value
of incentives offered under the agreement or five hundred dollars;
provided, however, that if the value of the incentives exceeds two
hundred fifty thousand dollars, the fee shall not exceed two thousand
five hundred dollars. The fee shall be payable to the legislative
authority or board of commissioners once per year for each year the
agreement is effective on the days and in the form specified in the
agreement. Fees paid shall be deposited in a special fund created for
such purpose by the legislative authority or board and shall be used
by the legislative authority or board exclusively for the purpose of
complying with section 5709.68 of the Revised Code and by the tax
incentive review council created under section 5709.85 of the Revised
Code exclusively for the purposes of performing the duties prescribed
under that section. The legislative authority or board may waive or
reduce the amount of the fee charged against an enterprise, but such
waiver or reduction does not affect the obligations of the
legislative authority or board or the tax incentive review council to
comply with section 5709.68 or 5709.85 of the Revised Code,
respectively.
(F)
With the approval of the legislative authority of a municipal
corporation or the board of township trustees of a township in which
a zone is designated under division (A)(2) of this section, the board
of county commissioners may delegate to that legislative authority or
board any powers and duties of the board to negotiate and administer
agreements with regard to that zone under this section.
(G)
When an agreement is entered into pursuant to this section, the
legislative authority or board of commissioners authorizing the
agreement shall forward a copy of the agreement to the director of
housing
and
development
services
and
to the tax commissioner within fifteen days after the agreement is
entered into. If any agreement includes terms not provided for in
section 5709.631 of the Revised Code affecting the revenue of a city,
local, exempted village, or joint vocational school district or
causing revenue to be forgone by the district, including any
compensation to be paid to the school district pursuant to section
5709.82 of the Revised Code, those terms also shall be forwarded in
writing to the director of
housing
and
development
services
along
with the copy of the agreement forwarded under this division.
(H)
After an agreement is entered into, the enterprise shall file with
each personal property tax return required to be filed while the
agreement is in effect, an informational return, on a form prescribed
by the tax commissioner for that purpose, setting forth separately
the property, and related costs and values, exempted from taxation
under the agreement.
(I)
An agreement entered into under this section may include a provision
requiring the enterprise to create one or more temporary internship
positions for students enrolled in a course of study at a school or
other educational institution in the vicinity, and to create a
scholarship or provide another form of educational financial
assistance for students holding such a position in exchange for the
student's commitment to work for the enterprise at the completion of
the internship.
Sec.
5709.633.
(A)(1)
Except as otherwise provided in division (B) of this section, no
legislative authority or board of county commissioners shall enter
into an agreement with an enterprise under division (E) of section
5709.62, division (D) of section 5709.63, or section 5709.632 of the
Revised Code if that enterprise or a successor enterprise currently
has operations at another location in this state and those operations
will be relocated to an enterprise zone upon or as a result of that
agreement.
(2)
Except as otherwise provided in division (B) of this section, if an
enterprise subject to an agreement granting an exemption from
taxation under section 5709.62, 5709.63, or 5709.632 of the Revised
Code expands its operations or relocates its operations to another
location in this state that results in a reduction of its operations
at any Ohio location, or discontinues operations at the project site
to which that exemption applies prior to the expiration of the term
of the agreement, no legislative authority shall enter into an
agreement with such an enterprise, a related member, or a successor
enterprise under section 5709.62, 5709.63, or 5709.632 of the Revised
Code prior to five years after such expansion, relocation, or
discontinuation of operations. The director of
housing
and
development
shall review all agreements entered into under those sections to
determine whether there has been a violation of this paragraph and
whether the requirements to be a facility have been met. If the
director discovers there has been a violation of this paragraph or
the requirements to be a facility have not been met, the agreement is
void, and all incentives granted under the agreement shall cease
immediately. The director shall certify to the legislative authority
and to the board of education of the city, local, or exempted village
school district to which operations were relocated that the agreement
is void.
(B)
Divisions (A)(1) and (2) of this section do not apply if the director
of
housing
and
development
waives application of those divisions. The director may waive
application of division (A)(1) of this section if the enterprise or
successor enterprise demonstrates, by documentation satisfactory to
the director, that the relocation was necessitated by or results from
one of the circumstances described in divisions (B)(1) to (3) of this
section, and the director determines that under the circumstance
claimed and in light of the possible relocation issuance of a waiver
is absolutely necessary to attract or retain employment opportunities
in this state. The director may waive application of division (A)(2)
of this section, except for the provision that the requirements to be
a facility must be met, if the enterprise, related member, or
successor enterprise demonstrates, by documentation satisfactory to
the director, that the discontinuation of operations was necessitated
by or resulted from one of the circumstances described in divisions
(B)(1) to (3) of this section, and the director determines that under
the circumstance claimed and in light of the possible relocation
issuance of a waiver is absolutely necessary to attract or retain
employment opportunities in this state.
The
circumstance that may be claimed shall be one of the following:
(1)
The project site at which operations are or will be discontinued
cannot accommodate expansion plans of the enterprise due to
inadequate land suitable for such expansion.
(2)
Conditions in the markets in which the enterprise participates
require that the enterprise relocate operations in order for the
enterprise to become or remain competitive in that market. These
conditions include, but are not limited to, any of the following:
(a)
New or modified contracts with customers or suppliers, such as
"just-in-time" supply or similar arrangements;
(b)
Changes in the enterprise's production methods;
(c)
Loss or impending loss of an existing contract requires expansion
into another market in order to maintain production levels;
(d)
Changes in ownership or other changes in control of the enterprise,
or of a controlled group of corporations of which the enterprise is a
subsidiary, that result from a decision on the part of owners or
officers located outside this state.
(3)
The enterprise currently is subject to a consolidation of its
operations, or such a consolidation is imminent. For purposes of
division (B)(3) of this section, "consolidation" means an
enterprise combines the operations of two or more existing facilities
and one of the following conditions is satisfied:
(a)
At least one of the facilities currently is not located in this
state, and the relocation of the operations of that facility would
result in both of the following during the term of the agreement:
(i)
The number of employees employed by the enterprise at its existing
facilities in this state to which operations are relocated increases
by not less than twenty-five per cent after the date the agreement is
formally approved by the legislative authority;
(ii)
The assessed value of tangible personal property first used in
business at the project site, or the assessed value of real property
constituting the project site, increases by not less than twenty-five
per cent after the date the agreement is formally approved by the
legislative authority.
(b)
All of the facilities currently are in this state, and the relocation
of the operations of any of those facilities would result in both of
the following during the term of the agreement:
(i)
The number of employees employed by the enterprise at its existing
facilities in this state to which operations are relocated increases
by not less than twenty-five per cent after the date the agreement is
formally approved by the legislative authority;
(ii)
The assessed value of tangible personal property first used in
business at the project site, or the assessed value of real property
constituting the project site, increases by not less than fifty per
cent over the assessed value, determined at the time of relocation,
of tangible personal property located at, and of real property
constituting, the facilities in this state from which operations
would be relocated.
For
purposes of divisions (B)(3)(a) and (b) of this section, "assessed
value of tangible personal property" and "assessed value of
real property" mean the value of such property as assessed for
purposes of property taxation and entered on the tax lists and
duplicates of the county.
(C)
To apply for a waiver under division (B) of this section, the
enterprise and the legislative authority intending to enter into an
agreement under section 5709.62, 5709.63, or 5709.632 of the Revised
Code shall petition the director of
housing
and
development
in a form acceptable to the director. The petition shall be
accompanied by documentation demonstrating one or more of the
circumstances described in divisions (B)(1), (2), or (3) of this
section. Not later than thirty days after receiving such a petition,
the director shall investigate the petition and accompanying
documentation to determine the validity of the circumstance claimed
therein, and shall issue to the enterprise and to the legislative
authority the determination, in writing, waiving, or refusing to
waive application of division (A) of this section.
Sec.
5709.64.
(A)
If an enterprise has been granted an incentive for the current
calendar year under an agreement entered pursuant to section 5709.62,
5709.63, or 5709.632 of the Revised Code, it may apply, on or before
the thirtieth day of April of that year, to the director of
housing
and
development,
on a form prescribed by the director, for a tax incentive
qualification certificate. The enterprise qualifies for an initial
certificate if, on or before the last day of the calendar year
immediately preceding that in which application is made, it satisfies
all of the following requirements:
(1)
The enterprise has established, expanded, renovated, or occupied a
facility pursuant to the agreement under section 5709.62, 5709.63, or
5709.632 of the Revised Code.
(2)
The enterprise has hired new employees to fill nonretail positions at
the facility, at least twenty-five per cent of whom at the time they
were employed were at least one of the following:
(a)
Unemployed persons who had resided at least six months in the county
in which the enterprise's project site is located;
(b)
JPTA eligible employees who had resided at least six months in the
county in which the enterprise's project site is located;
(c)
Participants of the Ohio works first program under Chapter 5107. of
the Revised Code or the prevention, retention, and contingency
program under Chapter 5108. of the Revised Code or recipients of
general assistance under former Chapter 5113. of the Revised Code,
financial assistance under former Chapter 5115. of the Revised Code,
or unemployment compensation benefits who had resided at least six
months in the county in which the enterprise's project site is
located;
(d)
Eligible individuals with disabilities, as defined under division (A)
of section 3304.11 of the Revised Code, who had resided at least six
months in the county in which the enterprise's project site is
located;
(e)
Residents for at least one year of a zone located in the county in
which the enterprise's project site is located.
The
director of
housing
and
development
shall, by rule, establish criteria for determining what constitutes a
nonretail position at a facility.
(3)
The average number of positions attributable to the enterprise in the
municipal corporation during the calendar year immediately preceding
the calendar year in which application is made exceeds the maximum
number of positions attributable to the enterprise in the municipal
corporation during the calendar year immediately preceding the first
year the enterprise satisfies the requirements set forth in divisions
(A)(1) and (2) of this section. If the enterprise is engaged in a
business which, because of its seasonal nature, customarily enables
the enterprise to operate at full capacity only during regularly
recurring periods of the year, the average number of positions
attributable to the enterprise in the municipal corporation during
each period of the calendar year immediately preceding the calendar
year in which application is made must exceed only the maximum number
of positions attributable to the enterprise in each corresponding
period of the calendar year immediately preceding the first year the
enterprise satisfies the requirements of divisions (A)(1) and (2) of
this section. The director of
housing
and
development
shall, by rule, prescribe methods for determining whether an
enterprise is engaged in a seasonal business and for determining the
length of the corresponding periods to be compared.
(4)
The enterprise has not closed or reduced employment at any place of
business in the state for the primary purpose of establishing,
expanding, renovating, or occupying a facility. The legislative
authority of any municipal corporation or the board of county
commissioners of any county that concludes that an enterprise has
closed or reduced employment at a place of business in that municipal
corporation or county for the primary purpose of establishing,
expanding, renovating, or occupying a facility in a zone may appeal
to the director to determine whether the enterprise has done so. Upon
receiving such an appeal, the director shall investigate the
allegations and make such a determination before issuing an initial
or renewal tax incentive qualification certificate under this
section.
Within
sixty days after receiving an application under this division, the
director shall review, investigate, and verify the application and
determine whether the enterprise qualifies for a certificate. The
application shall include an affidavit executed by the applicant
verifying that the enterprise satisfies the requirements of division
(A)(2) of this section, and shall contain such information and
documents as the director requires, by rule, to ascertain whether the
enterprise qualifies for a certificate. If the director finds the
enterprise qualified, the director shall issue a tax incentive
qualification certificate, which shall bear as its date of issuance
the thirtieth day of June of the year of application, and shall state
that the applicant is entitled to receive, for the taxable year that
includes the certificate's date of issuance, the tax incentives
provided under section 5709.65 of the Revised Code with regard to the
facility to which the certificate applies. If an enterprise is issued
an initial certificate, it may apply, on or before the thirtieth day
of April of each succeeding calendar year for which it has been
granted an incentive under an agreement entered pursuant to section
5709.62, 5709.63, or 5709.632 of the Revised Code, for a renewal
certificate. Subsequent to its initial certification, the enterprise
qualifies for up to three successive renewal certificates if, on or
before the last day of the calendar year immediately preceding that
in which the application is made, it satisfies all the requirements
of divisions (A)(1) to (4) of this section, and neither the zone's
designation nor the zone's certification has been revoked prior to
the fifteenth day of June of the year in which the application is
made. The application shall include an affidavit executed by the
applicant verifying that the enterprise satisfies the requirements of
division (A)(2) of this section. An enterprise with ten or more
supervisory personnel at the facility to which a certificate applies
qualifies for any subsequent renewal certificates only if it meets
all of the foregoing requirements and, in addition, at least ten per
cent of those supervisory personnel are employees who, when first
hired by the enterprise, satisfied at least one of the criteria
specified in divisions (A)(2)(a) to (e) of this section. If the
enterprise qualifies, a renewal certificate shall be issued bearing
as its date of issuance the thirtieth day of June of the year of
application. The director shall send copies of the initial
certificate, and each renewal certificate, by certified mail, to the
enterprise, the tax commissioner, the board of county commissioners,
and the chief executive of the municipal corporation in which the
facility to which the certificate applies is located.
(B)
If the director determines that an enterprise is not qualified for an
initial or renewal tax incentive qualification certificate, the
director shall send notice of this determination, specifying the
reasons for it, by certified mail, to the applicant, the tax
commissioner, the board of county commissioners, and the chief
executive of the municipal corporation in which the facility to which
the certificate would have applied is located. Within thirty days
after receiving such a notice, an enterprise may request, in writing,
a hearing before the director for the purpose of reviewing the
application and the reasons for the determination. Within sixty days
after receiving a request for a hearing, the director shall afford
one and, within thirty days after the hearing, shall issue a
redetermination of the enterprise's qualification for a certificate.
If the enterprise is found to be qualified, the director shall
proceed in the manner provided under division (A) of this section. If
the enterprise is found to be unqualified, the director shall send
notice of this finding, by certified mail, to the applicant, the tax
commissioner, the board of county commissioners, and the chief
executive of the municipal corporation in which the facility to which
the certificate would have applied is located. The director's
redetermination that an enterprise is unqualified may be appealed to
the board of tax appeals in the manner provided under section 5717.02
of the Revised Code.
Sec.
5709.66.
(A)
If an enterprise has been granted an incentive for the current
calendar year under an agreement entered into pursuant to section
5709.62 or 5709.63 of the Revised Code and satisfies both of the
requirements described in divisions (A)(1) and (2) of this section at
the time of application, it may apply to the director of
housing
and
development,
on a form prescribed by the director, for the employee tax credit
certificate under division (B) of this section.
(1)
The enterprise has established, expanded, renovated, or occupied a
facility pursuant to an agreement under section 5709.62 or 5709.63 of
the Revised Code in a zone that is certified by the director of
housing
and
development
as having one of the characteristics described in divisions (A)(1)(a)
or (b) and at least one of the characteristics described in divisions
(A)(1)(c) to (h) of section 5709.61 of the Revised Code.
(2)
The enterprise or any predecessor enterprise has not closed or
reduced employment at any place of business in this state within the
twelve months preceding application unless the enterprise, since the
date the agreement was formally approved by the legislative
authority, has hired new employees equal in number to not less than
fifty per cent of the total number of employees employed by the
enterprise at other locations in this state on that date. The
legislative authority of any municipal corporation or county that
concludes that an enterprise or any predecessor enterprise has closed
or reduced employment at a place of business in that municipal
corporation or county may appeal to the director to determine whether
the enterprise or any predecessor enterprise has done so. Upon
receiving such an appeal, the director shall investigate the
allegations and determine whether the enterprise satisfies the
requirement of division (A)(2) of this section before proceeding
under division (B) of this section.
Within
sixty days after receiving an application under this section, the
director shall review, investigate, and verify the application and
determine whether the enterprise is eligible for the employee tax
credit certificate under division (B) of this section. The
application shall contain such information and documents as the
director requires, by rule, to ascertain whether the enterprise is
eligible for the certificate. On finding that the enterprise is
eligible, the director shall proceed under division (B) of this
section.
On
determining that an enterprise is not eligible for the certificate
under division (B) of this section, the director shall send notice of
this determination, specifying the reasons for it, by certified mail,
to the applicant, the board of county commissioners, and the chief
executive of the municipal corporation in which the facility to which
the certificate would have been given is located. Within thirty days
after receiving such a notice, an enterprise may request, in writing,
a hearing before the director for the purpose of reviewing the
application and the reasons for the determination. Within sixty days
after receiving a request for a hearing, the director shall afford
one and, within thirty days after the hearing, shall issue a
redetermination of the enterprise's eligibility for the incentives.
If the enterprise is found to be eligible, the director shall proceed
under division (B) of this section. If the enterprise is found to be
ineligible, the director shall send notice of this finding, by
certified mail, to the applicant, the board of commissioners of the
county or the chief executive of the municipal corporation in which
the facility to which the certificate would have been given is
located. The director's redetermination that an enterprise is
ineligible may be appealed to the board of tax appeals under section
5717.02 of the Revised Code.
(B)(1)
If the director determines an enterprise to be eligible under
division (A) of this section, the director shall determine if the
enterprise is entitled to an employee tax credit certificate. An
enterprise is entitled to an employee tax credit certificate for each
eligible employee the enterprise hires. A taxpayer who is issued an
employee tax credit certificate under this section may claim a
nonrefundable credit of one thousand dollars against the taxpayer's
aggregate tax liability under either section 5733.06 or 5747.02 of
the Revised Code for each taxable year of the agreement entered into
under section 5709.62 or 5709.63 of the Revised Code in which an
eligible employee is employed for the taxpayer's full taxable year.
If the eligible employee is employed for less than the taxpayer's
full taxable year, the taxpayer may claim a reduced credit against
the aggregate amount of tax due under either section 5733.06 or
5747.02 of the Revised Code. The reduced credit shall be computed by
dividing the total number of days in the taxable year into one
thousand dollars and multiplying the quotient by the number of days
the eligible employee was employed in the taxable year. For purposes
of the computation, the eligible employee shall be deemed to have
been employed for each day of the taxable year commencing on the date
of employment or ending on the date of termination of employment.
The
credit provided under this division to a noncorporate enterprise or
an enterprise that is an S corporation as defined in section 1361 of
the Internal Revenue Code shall be divided pro rata among the owners
or shareholders of the enterprise subject to the tax imposed by
section 5747.02 of the Revised Code, based on their proportionate
ownership interests in the enterprise. The enterprise shall file with
the tax commissioner, on a form prescribed by the tax commissioner, a
statement showing the total available credit and the portion of that
credit attributed to each owner or shareholder. The statement shall
identify each owner or shareholder by name and social security number
and shall be filed with the tax commissioner by the date prescribed
by the tax commissioner, which shall be no earlier than the fifteenth
day of the month following the close of the enterprise's taxable year
for which the credit is claimed.
The
taxpayer shall claim the credit in the order required under section
5733.98 or 5747.98 of the Revised Code. If the credit provided under
this division exceeds the taxpayer's tax liability for the taxable
year after allowance for any other credits that precede the credit
under this section in that order, the credit may be carried forward
for the next three succeeding taxable years, but the amount of any
excess credit allowed in any such year shall be deducted from the
balance carried forward to the succeeding taxable year.
(2)
As used in this division:
(a)
"Eligible employee" means a new employee at a facility who,
at the time the employee was hired to work at the facility, was a
participant of the Ohio works first program under Chapter 5107. of
the Revised Code or the prevention, retention, and contingency
program under Chapter 5108. of the Revised Code or a recipient of
general assistance under former Chapter 5113. of the Revised Code and
resided for at least one year in the county in which the facility is
located. "Eligible employee" does not include any employee
of the enterprise who is a new employee, as defined under section
122.17 of the Revised Code, on the basis of whom the enterprise has
claimed a credit under that section.
(b)
"Taxable year" has the same meaning as in section 5733.04
or 5747.01 of the Revised Code, as applicable to the enterprise
claiming the credit.
Sec.
5709.67.
(A)
Except as otherwise provided in sections 5709.61 to 5709.69 of the
Revised Code, the director of
housing
and
development
shall administer those sections and shall adopt rules necessary to
implement and administer the enterprise zone program. The director
shall assign to each zone currently certified a unique designation by
which the zone shall be identified for purposes of administering
sections 5709.61 to 5709.69 of the Revised Code. The tax commissioner
shall administer all other tax incentives provided under sections
5709.61 to 5709.69 of the Revised Code and shall adopt rules
necessary to carry out that duty. No tax incentive qualification
certificate or employee tax credit certificate shall be issued or
remain in effect unless the enterprise applying for or holding the
certificate complies with all such rules. The director of job and
family services shall administer the incentive provided under
division (B)(1) of section 5709.66 of the Revised Code and shall
adopt rules necessary to carry out that duty. No extension of
benefits certificate shall be issued or remain in effect unless the
enterprise applying for or holding the certificate complies with all
such rules.
(B)
Not later than the first day of August each year, the director of
housing
and
development
shall report to the general assembly on all of the following for the
preceding calendar year:
(1)
The cost to the state of the tax and other incentives provided under
sections 5709.61 to 5709.69 of the Revised Code;
(2)
The number of tax incentive qualification certificates, employee tax
credit certificates, and extension of benefits certificates issued;
(3)
The names of the municipal corporations and counties that have
entered agreements under sections 5709.62, 5709.63, and 5709.632 of
the Revised Code;
(4)
The number of new employees hired as a result of the tax and other
incentives provided under sections 5709.61 to 5709.69 of the Revised
Code;
(5)
Information on agreement terms concerning school district revenue
that are not provided for in section 5709.631 of the Revised Code and
that are forwarded to the director under division (H) of section
5709.62, division (H) of section 5709.63, or division (G) of section
5709.632 of the Revised Code.
The
report shall include a finding by the director as to whether the
incentives provided under sections 5709.61 to 5709.69 of the Revised
Code have resulted in the creation of more positions in the state
than would have been created without the incentives. The director
shall send a copy of the report to each member of the general
assembly and to the director of the legislative service commission.
Sec.
5709.671.
By
amendment
or
enactment of
this act
Chapters 725. and 1728. and sections 3735.67 to 3735.70, 5709.40 to
5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75, and 5709.77 to
5709.81 of the Revised Code by Amended Substitute Senate Bill No. 19
of the 120th general assembly
,
the
General
Assembly
general assembly
expresses its policy of encouraging political subdivisions of this
state to exercise the authority granted under
Chapters
725. and 1728. and under sections 3735.67 to 3735.70, 5709.40 to
5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75, and 5709.77 to
5709.81 of the Revised Code
those
chapters and sections
for the purposes stated therein, and for the purposes of retaining
existing or creating new employment opportunities within the
political subdivision to the extent the exercise of such authority is
necessary to result in a net increase in employment in this state
above that which would prevail in the absence of the use of such
authority. Such authority is not intended by the
General
Assembly
general
assembly
to be exercised if not necessary to achieve such a result, nor is it
intended to be exercised for the purpose of transferring employment
from one political subdivision in this state to another if such
exercise does not result in a net increase in or retention of
employment in this state.
The
Director
director
of
Development
housing
and development
may adopt such rules as the
Director
director
determines will best effect the policy stated under this section.
Such rules shall be adopted in accordance with Chapter 119. of the
Revised Code, and shall apply only to agreements or actions executed
on or after the effective date of such rules.
Sec.
5709.68.
(A)
On or before the thirty-first day of March each year, a municipal
corporation or county that has entered into an agreement with an
enterprise under section 5709.62, 5709.63, or 5709.632 of the Revised
Code shall submit to the director of
housing
and
development
services
and
the board of education of each school district of which a municipal
corporation or township to which such an agreement applies is a part
a report on all of those agreements in effect during the preceding
calendar year. The report shall include all of the following
information:
(1)
The designation, assigned by the director of
housing
and
development
services
,
of each urban jobs and enterprise zone within the municipal
corporation or county, the date each zone was certified, the name of
each municipal corporation or township within each zone, and the
total population of each zone according to the most recent data
available;
(2)
The number of enterprises that are subject to those agreements and
the number of full-time employees subject to those agreements within
each zone, each according to the most recent data available and
identified and categorized by the appropriate standard industrial
code, and the rate of unemployment in the municipal corporation or
county in which the zone is located for each year since each zone was
certified;
(3)
The number of agreements approved and executed during the calendar
year for which the report is submitted, the total number of
agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired during
the calendar year for which the report is submitted, and the number
of agreements scheduled to expire during the calendar year in which
the report is submitted. For each agreement that expired during the
calendar year for which the report is submitted, the municipal
corporation or county shall include the amount of taxes exempted and
the estimated dollar value of any other incentives provided under the
agreement.
(4)
The number of agreements receiving compliance reviews by the tax
incentive review council in the municipal corporation or county
during the calendar year for which the report is submitted, including
all of the following information:
(a)
The number of agreements the terms of which an enterprise has
complied with, indicating separately for each agreement the value of
the real and personal property exempted pursuant to the agreement and
a comparison of the stipulated and actual schedules for hiring new
employees, for retaining existing employees, for the amount of
payroll of the enterprise attributable to these employees, and for
investing in establishing, expanding, renovating, or occupying a
facility;
(b)
The number of agreements the terms of which an enterprise has failed
to comply with, indicating separately for each agreement the value of
the real and personal property exempted pursuant to the agreement and
a comparison of the stipulated and actual schedules for hiring new
employees, for retaining existing employees, for the amount of
payroll of the enterprise attributable to these employees, and for
investing in establishing, expanding, renovating, or occupying a
facility;
(c)
The number of agreements about which the tax incentive review council
made recommendations to the legislative authority of the municipal
corporation or county, and the number of those recommendations that
have not been followed;
(d)
The number of agreements rescinded during the calendar year for which
the report is submitted.
(5)
The number of enterprises that are subject to agreements that
expanded within each zone, including the number of new employees
hired and existing employees retained by each enterprise, and the
number of new enterprises that are subject to agreements and that
established within each zone, including the number of new employees
hired by each enterprise;
(6)(a)
The number of enterprises that are subject to agreements and that
closed or reduced employment at any place of business within the
state for the primary purpose of establishing, expanding, renovating,
or occupying a facility, indicating separately for each enterprise
the political subdivision in which the enterprise closed or reduced
employment at a place of business and the number of full-time
employees transferred and retained by each such place of business;
(b)
The number of enterprises that are subject to agreements and that
closed or reduced employment at any place of business outside the
state for the primary purpose of establishing, expanding, renovating,
or occupying a facility.
(7)
For each agreement in effect during any part of the preceding year,
the number of employees employed by the enterprise at the project
site immediately prior to formal approval of the agreement, the
number of employees employed by the enterprise at the project site on
the thirty-first day of December of the preceding year, the payroll
of the enterprise for the preceding year, the amount of taxes paid on
tangible personal property situated at the project site and the
amount of those taxes that were not paid because of the exemption
granted under the agreement, and the amount of taxes paid on real
property constituting the project site and the amount of those taxes
that were not paid because of the exemption granted under the
agreement. If an agreement was entered into under section 5709.632 of
the Revised Code with an enterprise described in division (B)(2) of
that section, the report shall include the number of employee
positions at all of the enterprise's locations in this state. If an
agreement is conditioned on a waiver issued under division (B) of
section 5709.633 of the Revised Code on the basis of the circumstance
described in division (B)(3)(a) or (b) of that section, the report
shall include the number of employees at the facilities referred to
in division (B)(3)(a)(i) or (b)(i) of that section, respectively.
(B)
Upon the failure of a municipal corporation or county to comply with
division (A) of this section:
(1)
Beginning on the first day of April of the calendar year in which the
municipal corporation or county fails to comply with that division,
the municipal corporation or county shall not enter into any
agreements with an enterprise under section 5709.62, 5709.63, or
5709.632 of the Revised Code until the municipal corporation or
county has complied with division (A) of this section.
(2)
On the first day of each ensuing calendar month until the municipal
corporation or county complies with division (A) of this section, the
director of
housing
and
development
services
shall
either order the proper county auditor to deduct from the next
succeeding payment of taxes to the municipal corporation or county
under section 321.31, 321.32, 321.33, or 321.34 of the Revised Code
an amount equal to one thousand dollars for each calendar month the
municipal corporation or county fails to comply with that division,
or order the county auditor to deduct that amount from the next
succeeding payment to the municipal corporation or county from the
undivided local government fund under section 5747.51 of the Revised
Code. At the time such a payment is made, the county auditor shall
comply with the director's order by issuing a warrant, drawn on the
fund from which the money would have been paid, to the director of
housing
and
development
services
,
who shall deposit the warrant into the state enterprise zone program
administration fund created in division (C) of this section.
(C)
The director, by rule, shall establish the state's application fee
for applications submitted to a municipal corporation or county to
enter into an agreement under section 5709.62, 5709.63, or 5709.632
of the Revised Code. In establishing the amount of the fee, the
director shall consider the state's cost of administering the
enterprise zone program, including the cost of reviewing the reports
required under division (A) of this section. The director may change
the amount of the fee at the times and in the increments the director
considers necessary. Any municipal corporation or county that
receives an application shall collect the application fee and remit
the fee for deposit in the state treasury to the credit of the tax
incentives operating fund created in section 122.174 of the Revised
Code.
(D)
On or before the thirtieth day of June each year, the director of
housing
and
development
services
shall
certify to the tax commissioner the information described under
division (A)(7) of this section, derived from the reports submitted
to the director under this section.
On
the basis of the information certified under this division, the tax
commissioner annually shall submit a report to the governor, the
speaker of the house of representatives, the president of the senate,
and the chairpersons of the ways and means committees of the
respective houses of the general assembly, indicating for each
enterprise zone the amount of state and local taxes that were not
required to be paid because of exemptions granted under agreements
entered into under section 5709.62, 5709.63, or 5709.632 of the
Revised Code and the amount of additional taxes paid from the payroll
of new employees.
Sec.
5709.69.
If
an enterprise operating in a county or municipal corporation in this
state intends to relocate or relocates part or all of its operations
to another county or municipal corporation in this state and has
entered into or intends to enter into an agreement under section
5709.62, 5709.63, or 5709.632 of the Revised Code with that county or
municipal corporation, the legislative authority or an officer of the
county or municipal corporation to which the enterprise intends to
relocate or relocates shall serve the legislative authority of the
county or municipal corporation from which the enterprise intends to
relocate or relocates with notice of the enterprise's intention to
relocate, accompanied by a copy of the agreement to be entered into
or entered into pursuant to section 5709.62, 5709.63, or 5709.632 of
the Revised Code and a statement of the enterprise's reasons for
relocation. The legislative authority or officer also shall serve
such notice upon the director of
housing
and
development.
In both cases, service shall be by personal service or certified
mail, return receipt requested, not later than thirty days prior to
the day of the first public meeting at which the agreement is
deliberated by the legislative authority of the county or municipal
corporation to which the enterprise intends to relocate or relocates.
With the approval of the director of
housing
and
development,
service shall be not later than fifteen days prior to the day of the
first public meeting of the legislative authority at which the
agreement is deliberated. The legislative authority or officer
required to serve notice shall seek such approval by applying to the
director at the earliest possible time prior to that meeting. The
director may approve the later service if the director determines
that earlier notice is not possible or would be likely to jeopardize
realization of the project. If approval for a later notice is applied
for, the legislative authority or officer need not serve notice to
the director as otherwise required by this section.
If
the legislative authority or officer required to serve such notices
fails to do so as prescribed by this section, the legislative
authority shall not enter into an agreement under those sections with
that enterprise.
This
section applies only to relocations of operations that result or
would result in the reduction of employment or the cessation of
operations at a place of business in this state.
Sec.
5709.73.
(A)
As used in this section and section 5709.74 of the Revised Code:
(1)
"Business day" means a day of the week excluding Saturday,
Sunday, and a legal holiday as defined in section 1.14 of the Revised
Code.
(2)
"Further improvements" or "improvements" means
the increase in the assessed value of real property that would first
appear on the tax list and duplicate of real and public utility
property after the effective date of a resolution adopted under this
section were it not for the exemption granted by that resolution. For
purposes of division (B) of this section, "improvements" do
not include any property used or to be used for residential purposes.
For this purpose, "property that is used or to be used for
residential purposes" means property that, as improved, is used
or to be used for purposes that would cause the tax commissioner to
classify the property as residential property in accordance with
rules adopted by the commissioner under section 5713.041 of the
Revised Code.
(3)
"Housing renovation" means a project carried out for
residential purposes.
(4)
"Incentive district" has the same meaning as in section
5709.40 of the Revised Code, except that a blighted area is in the
unincorporated area of a township.
(5)
"Overlay" has the same meaning as in section 5709.40 of the
Revised Code, except that the overlay is delineated by the board of
township trustees.
(6)
"Project" and "public infrastructure improvement"
have the same meanings as in section 5709.40 of the Revised Code.
(7)
"Urban township" has the same meaning as in section 504.01
of the Revised Code.
(8)
"Nonperforming parcel" means a parcel to which all of the
following apply:
(a)
The parcel is exempted from taxation under division (B) of this
section or has been included in a district created under division (C)
of this section.
(b)
The parcel's owner is required to make payments in lieu of taxes in
accordance with section 5709.74 of the Revised Code.
(c)
No such payments have been remitted to the county treasurer since the
inception of the exemption or district.
(B)
A board of township trustees may adopt a resolution that declares to
be a public purpose any public infrastructure improvements made that
are necessary for the development of certain parcels of land located
in the unincorporated area of the township. Except for a resolution
adopted by the board of an urban township, the resolution shall be
adopted by a unanimous vote of the board. Except as otherwise
provided under division (D) of this section or section 5709.51 of the
Revised Code, the resolution may exempt from real property taxation
not more than seventy-five per cent of further improvements to a
parcel of land that directly benefits from the public infrastructure
improvements, for a period of not more than ten years. The resolution
shall specify the percentage of the further improvements to be
exempted and the life of the exemption.
(C)(1)
A board of township trustees may adopt a resolution creating an
incentive district and declaring improvements to parcels within the
district to be a public purpose and, except as provided in division
(C)(2) of this section, exempt from taxation as provided in this
section. Except for a resolution adopted by the board of an urban
township, the resolution shall be adopted by a unanimous vote of the
board. A board of township trustees of a township that has a
population that exceeds twenty-five thousand, as shown by the most
recent federal decennial census, may not adopt a resolution that
creates an incentive district if the sum of the taxable value of real
property in the proposed district for the preceding tax year and the
taxable value of all real property in the township that would have
been taxable in the preceding year were it not for the fact that the
property was in an existing incentive district and therefore exempt
from taxation exceeds twenty-five per cent of the taxable value of
real property in the township for the preceding tax year. The
district shall be located within the unincorporated area of the
township and shall not include any territory that is included within
a district created under division (B) of section 5709.78 of the
Revised Code. The resolution shall delineate the boundary of the
proposed district and specifically identify each parcel within the
district. A proposed district may not include any parcel, other than
a nonperforming parcel, that is or has been exempted from taxation
under division (B) of this section or that is or has been within
another district created under this division. On and after the
effective date of the district, a nonperforming parcel within the
district is no longer exempted from taxation under division (B) of
this section or included within an incentive district under any
previous resolution, and the parcel's owner is no longer required to
make payments in lieu of taxes under such a previous resolution in
accordance with section 5709.74 of the Revised Code. Any exemption
application filed with the tax commissioner under section 5715.27 of
the Revised Code under the second resolution shall identify the
nonperforming parcels included in the second district, the original
resolution under which the nonperforming parcels were originally
exempted, and the value history of each nonperforming parcel since
the enactment of the original resolution. A resolution may create
more than one such district, and more than one resolution may be
adopted under division (C)(1) of this section.
(2)(a)
Not later than thirty days prior to adopting a resolution under
division (C)(1) of this section, if the township intends to apply for
exemptions from taxation under section 5709.911 of the Revised Code
on behalf of owners of real property located within the proposed
incentive district, the board shall conduct a public hearing on the
proposed resolution. Not later than thirty days prior to the public
hearing, the board shall give notice of the public hearing and the
proposed resolution by first class mail to every real property owner
whose property is located within the boundaries of the proposed
incentive district that is the subject of the proposed resolution.
The notice shall include a map of the proposed incentive district on
which the board of township trustees shall have delineated an
overlay. The notice shall inform the property owner of the owner's
right to exclude the owner's property from the incentive district if
both of the following conditions are met:
(i)
The owner's entire parcel of property will not be located within the
overlay.
(ii)
The owner has submitted a statement to the board of county
commissioners of the county in which the parcel is located indicating
the owner's intent to seek a tax exemption for improvements to the
owner's parcel under division (A) or (B) of section 5709.78 of the
Revised Code within the next five years.
When
both of the preceding conditions are met, the owner may exclude the
owner's property from the incentive district by submitting a written
response in accordance with division (C)(2)(b) of this section. The
notice also shall include information detailing the required contents
of the response, the address to which the response may be mailed, and
the deadline for submitting the response.
(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (C)(1) of this section who
meets the conditions specified in divisions (C)(2)(a)(i) and (ii) of
this section may exclude the property from the proposed incentive
district by submitting a written response to the board not later than
forty-five days after the postmark date on the notice required under
division (C)(2)(a) of this section. The response shall include a copy
of the statement submitted under division (C)(2)(a)(ii) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the board under division
(C)(2)(a) of this section. The response shall conform to any content
requirements that may be established by the board and included in the
notice provided under division (C)(2)(a) of this section. In the
response, property owners may identify a parcel by street address, by
the manner in which it is identified in the resolution, or by other
means allowing the identity of the parcel to be ascertained.
(c)
Before adopting a resolution under division (C)(1) of this section,
the board shall amend the resolution to exclude any parcel for which
a written response has been submitted under division (C)(2)(b) of
this section. A township shall not apply for exemptions from taxation
under section 5709.911 of the Revised Code for any such parcel, and
service payments may not be required from the owner of the parcel.
Improvements to a parcel excluded from an incentive district under
this division may be exempted from taxation under division (B) of
this section pursuant to a resolution adopted under that division or
under any other section of the Revised Code under which the parcel
qualifies.
(3)(a)
A resolution adopted under division (C)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The resolution also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the resolution. The project identified
may, but need not be, the project under division (C)(3)(b) of this
section that places real property in use for commercial or industrial
purposes.
A
resolution adopted under division (C)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and, except as provided in
division (F) of this section, no service payment provided for in
section 5709.74 of the Revised Code and received by the township
under the resolution shall be used for police or fire equipment.
(b)
A resolution adopted under division (C)(1) of this section may
authorize the use of service payments provided for in section 5709.74
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the resolution also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The resolution shall designate the parcels within the district that
are eligible for housing renovations. The resolution shall state
separately the amount or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the purpose of housing renovations.
(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (E) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (D) of
this section.
(D)
Improvements with respect to a parcel may be exempted from taxation
under division (B) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (C) of this section, for up to ten years or, with the
approval of the board of education of the city, local, or exempted
village school district within which the parcel or district is
located, for up to thirty years. The percentage of the improvements
exempted from taxation may, with such approval, exceed seventy-five
per cent, but shall not exceed one hundred per cent. Not later than
forty-five business days prior to adopting a resolution under this
section declaring improvements to be a public purpose that is subject
to approval by a board of education under this division, the board of
township trustees shall deliver to the board of education a notice
stating its intent to adopt a resolution making that declaration. The
notice regarding improvements with respect to a parcel under division
(B) of this section shall identify the parcels for which improvements
are to be exempted from taxation, provide an estimate of the true
value in money of the improvements, specify the period for which the
improvements would be exempted from taxation and the percentage of
the improvements that would be exempted, and indicate the date on
which the board of township trustees intends to adopt the resolution.
The notice regarding improvements made under division (C) of this
section to parcels within an incentive district shall delineate the
boundaries of the district, specifically identify each parcel within
the district, identify each anticipated improvement in the district,
provide an estimate of the true value in money of each such
improvement, specify the life of the district and the percentage of
improvements that would be exempted, and indicate the date on which
the board of township trustees intends to adopt the resolution. The
board of education, by resolution adopted by a majority of the board,
may approve the exemption for the period or for the exemption
percentage specified in the notice; may disapprove the exemption for
the number of years in excess of ten, may disapprove the exemption
for the percentage of the improvements to be exempted in excess of
seventy-five per cent, or both; or may approve the exemption on the
condition that the board of township trustees and the board of
education negotiate an agreement providing for compensation to the
school district equal in value to a percentage of the amount of taxes
exempted in the eleventh and subsequent years of the exemption period
or, in the case of exemption percentages in excess of seventy-five
per cent, compensation equal in value to a percentage of the taxes
that would be payable on the portion of the improvements in excess of
seventy-five per cent were that portion to be subject to taxation, or
other mutually agreeable compensation.
The
board of education shall certify its resolution to the board of
township trustees not later than fourteen days prior to the date the
board of township trustees intends to adopt the resolution as
indicated in the notice. If the board of education and the board of
township trustees negotiate a mutually acceptable compensation
agreement, the resolution may declare the improvements a public
purpose for the number of years specified in the resolution or, in
the case of exemption percentages in excess of seventy-five per cent,
for the exemption percentage specified in the resolution. In either
case, if the board of education and the board of township trustees
fail to negotiate a mutually acceptable compensation agreement, the
resolution may declare the improvements a public purpose for not more
than ten years, and shall not exempt more than seventy-five per cent
of the improvements from taxation. If the board of education fails to
certify a resolution to the board of township trustees within the
time prescribed by this section, the board of township trustees
thereupon may adopt the resolution and may declare the improvements a
public purpose for up to thirty years or, in the case of exemption
percentages proposed in excess of seventy-five per cent, for the
exemption percentage specified in the resolution. The board of
township trustees may adopt the resolution at any time after the
board of education certifies its resolution approving the exemption
to the board of township trustees, or, if the board of education
approves the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board of education and the
board of township trustees. If a mutually acceptable compensation
agreement is negotiated between the board of township trustees and
the board of education, including agreements for payments in lieu of
taxes under section 5709.74 of the Revised Code, the board of
township trustees shall compensate the joint vocational school
district within which the parcel or district is located at the same
rate and under the same terms received by the city, local, or
exempted village school district.
If
a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of such exemptions by the
board of education is not required under division (D) of this
section. If a board of education has adopted a resolution allowing a
board of township trustees to deliver the notice required under
division (D) of this section fewer than forty-five business days
prior to adoption of the resolution by the board of township
trustees, the board of township trustees shall deliver the notice to
the board of education not later than the number of days prior to the
adoption as prescribed by the board of education in its resolution.
If a board of education adopts a resolution waiving its right to
approve exemptions or shortening the notification period, the board
of education shall certify a copy of the resolution to the board of
township trustees. If the board of education rescinds the resolution,
it shall certify notice of the rescission to the board of township
trustees.
If
the board of township trustees is not required by division (D) of
this section to notify the board of education of the board of
township trustees' intent to declare improvements to be a public
purpose, the board of township trustees shall comply with the notice
requirements imposed under section 5709.83 of the Revised Code before
taking formal action to adopt the resolution making that declaration,
unless the board of education has adopted a resolution under that
section waiving its right to receive the notice.
Nothing
in this division prohibits the board of township trustees from
amending the resolution under section 5709.51 of the Revised Code to
extend the term of the exemption.
(E)(1)
If a proposed resolution under division (C)(1) of this section
exempts improvements with respect to a parcel within an incentive
district for more than ten years, or the percentage of the
improvement exempted from taxation exceeds seventy-five per cent, not
later than forty-five business days prior to adopting the resolution
the board of township trustees shall deliver to the board of county
commissioners of the county within which the incentive district is or
will be located a notice that states its intent to adopt a resolution
creating an incentive district. The notice shall include a copy of
the proposed resolution, identify the parcels for which improvements
are to be exempted from taxation, provide an estimate of the true
value in money of the improvements, specify the period of time for
which the improvements would be exempted from taxation, specify the
percentage of the improvements that would be exempted from taxation,
and indicate the date on which the board of township trustees intends
to adopt the resolution.
(2)
The board of county commissioners, by resolution adopted by a
majority of the board, may object to the exemption for the number of
years in excess of ten, may object to the exemption for the
percentage of the improvement to be exempted in excess of
seventy-five per cent, or both. If the board of county commissioners
objects, the board may negotiate a mutually acceptable compensation
agreement with the board of township trustees. In no case shall the
compensation provided to the board of county commissioners exceed the
property taxes foregone due to the exemption. If the board of county
commissioners objects, and the board of county commissioners and
board of township trustees fail to negotiate a mutually acceptable
compensation agreement, the resolution adopted under division (C)(1)
of this section shall provide to the board of county commissioners
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the county or, if the board of county
commissioner's objection includes an objection to an exemption
percentage in excess of seventy-five per cent, compensation equal in
value to not more than fifty per cent of the taxes that would be
payable to the county, on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.
The board of county commissioners shall certify its resolution to the
board of township trustees not later than thirty days after receipt
of the notice.
(3)
If the board of county commissioners does not object or fails to
certify its resolution objecting to an exemption within thirty days
after receipt of the notice, the board of township trustees may adopt
its resolution, and no compensation shall be provided to the board of
county commissioners. If the board of county commissioners timely
certifies its resolution objecting to the trustees' resolution, the
board of township trustees may adopt its resolution at any time after
a mutually acceptable compensation agreement is agreed to by the
board of county commissioners and the board of township trustees, or,
if no compensation agreement is negotiated, at any time after the
board of township trustees agrees in the proposed resolution to
provide compensation to the board of county commissioners of fifty
per cent of the taxes that would be payable to the county in the
eleventh and subsequent years of the exemption period or on the
portion of the improvement in excess of seventy-five per cent, were
that portion to be subject to taxation.
(F)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to a resolution creating an incentive district under division (C)(1)
of this section that is adopted on or after January 1, 2006, or a
later date as specified in this division, shall be distributed to the
appropriate taxing authority as required under division (C) of
section 5709.74 of the Revised Code in an amount equal to the amount
of taxes from that additional levy or from the increase in the
effective tax rate of such renewal or replacement levy that would
have been payable to that taxing authority from the following levies
were it not for the exemption authorized under division (C) of this
section:
(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;
(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;
(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;
(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or families;
(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;
(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;
(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;
(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;
(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;
(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;
(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;
(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program;
(13)
A tax levied by a township under section 505.39, 505.51, or division
(I), (J), (U), or (JJ) of section 5705.19 of the Revised Code for the
purpose of funding fire, police, emergency medical, or ambulance
services as described in those sections. Division (F)(13) of this
section applies only to incentive districts created by a resolution
adopted on or after March 22, 2019, the effective date of the
amendment of this section by H.B. 500 of the 132nd general assembly,
and only if that resolution specifies that division (F) of this
section shall apply to such a tax.
(G)
An exemption from taxation granted under this section commences with
the tax year specified in the resolution so long as the year
specified in the resolution commences after the effective date of the
resolution. If the resolution specifies a year commencing before the
effective date of the resolution or specifies no year whatsoever, the
exemption commences with the tax year in which an exempted
improvement first appears on the tax list and duplicate of real and
public utility property and that commences after the effective date
of the resolution. In lieu of stating a specific year, the resolution
may provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the resolution.
With respect to the exemption of improvements to parcels under
division (B) of this section, the resolution may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.
Except
as otherwise provided in this division and section 5709.51 of the
Revised Code, the exemption ends on the date specified in the
resolution as the date the improvement ceases to be a public purpose
or the incentive district expires, or ends on the date on which the
public infrastructure improvements and housing renovations are paid
in full from the township public improvement tax increment equivalent
fund established under section 5709.75 of the Revised Code, whichever
occurs first. The exemption of an improvement with respect to a
parcel or within an incentive district may end on a later date, as
specified in the resolution, if the board of township trustees and
the board of education of the city, local, or exempted village school
district within which the parcel or district is located have entered
into a compensation agreement under section 5709.82 of the Revised
Code with respect to the improvement and the board of education has
approved the term of the exemption under division (D) of this
section, but in no case shall the improvement be exempted from
taxation for more than thirty years. The board of township trustees
may, by majority vote, adopt a resolution permitting the township to
enter into such agreements as the board finds necessary or
appropriate to provide for the construction or undertaking of public
infrastructure improvements and housing renovations. Any exemption
shall be claimed and allowed in the same or a similar manner as in
the case of other real property exemptions. If an exemption status
changes during a tax year, the procedure for the apportionment of the
taxes for that year is the same as in the case of other changes in
tax exemption status during the year.
(H)
The board of township trustees may issue the notes of the township to
finance all costs pertaining to the construction or undertaking of
public infrastructure improvements and housing renovations made
pursuant to this section. The notes shall be signed by the board and
attested by the signature of the township fiscal officer, shall bear
interest not to exceed the rate provided in section 9.95 of the
Revised Code, and are not subject to Chapter 133. of the Revised
Code. The resolution authorizing the issuance of the notes shall
pledge the funds of the township public improvement tax increment
equivalent fund established pursuant to section 5709.75 of the
Revised Code to pay the interest on and principal of the notes. The
notes, which may contain a clause permitting prepayment at the option
of the board, shall be offered for sale on the open market or given
to the vendor or contractor if no sale is made.
(I)
The township, not later than fifteen days after the adoption of a
resolution under this section, shall submit to the director of
housing
and
development
a copy of the resolution. On or before the thirty-first day of March
of each year, the township shall submit a status report to the
director. The report shall indicate, in the manner prescribed by the
director, the progress of the project during each year that the
exemption remains in effect, including a summary of the receipts from
service payments in lieu of taxes; expenditures of money from the
fund created under section 5709.75 of the Revised Code; a description
of the public infrastructure improvements and housing renovations
financed with the expenditures; and a quantitative summary of changes
in private investment resulting from each project.
(J)
Nothing in this section shall be construed to prohibit a board of
township trustees from declaring to be a public purpose improvements
with respect to more than one parcel.
If
a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.
(K)
A board of township trustees that adopted a resolution under this
section prior to July 21, 1994, may amend that resolution to include
any additional public infrastructure improvement. A board of township
trustees that seeks by the amendment to utilize money from its
township public improvement tax increment equivalent fund for land
acquisition in aid of industry, commerce, distribution, or research,
demolition on private property, or stormwater and flood remediation
projects may do so provided that the board currently is a party to a
hold-harmless agreement with the board of education of the city,
local, or exempted village school district within the territory of
which are located the parcels that are subject to an exemption. For
the purposes of this division, a "hold-harmless agreement"
means an agreement under which the board of township trustees agrees
to compensate the school district for one hundred per cent of the tax
revenue that the school district would have received from further
improvements to parcels designated in the resolution were it not for
the exemption granted by the resolution.
(L)(1)
Notwithstanding the limitation prescribed by division (D) of this
section on the number of years that improvements to a parcel or
parcels may be exempted from taxation, and subject to division (L)(3)
of this section, a board of trustees of a township with a population
of fifteen thousand or more may amend a resolution originally adopted
under this section before December 31, 1994, to extend the exemption
of improvements to the parcel or parcels included in such resolution
for an additional period not to exceed fifteen years. The amendment
shall not increase the percentage of improvements to the parcel or
parcels exempted from taxation.
(2)
Notwithstanding the limitations prescribed by divisions (C) and (D)
of this section on the life of an incentive district and the number
of years that improvements to a parcel or parcels within an incentive
district may be exempted from taxation, and subject to division
(L)(3) of this section, a board of township trustees may amend a
resolution originally adopted under division (C) of this section
before January 1, 2006, to extend the life of an incentive district
created by that resolution. The extension shall be for a period not
to exceed fifteen years and shall not increase the percentage of the
value of improvements exempted from taxation.
(3)
Before adopting an amendment authorized under division (L)(1) or (2)
of this section, the board of township trustees shall provide notice
of the amendment to each board of education of the city, local, or
exempted village school district in which the exempted parcels or
incentive district are located, in the same manner as provided under
division (D) of this section, and shall obtain the approval of each
such board of education in the manner required under that division,
except that (a) the board of education may approve the exemption on
the condition that the board of township trustees and the board of
education negotiate an agreement providing for compensation to the
school district equal in value to the amount of taxes the district
forgoes in each year the exemption is extended or any other mutually
agreeable compensation and (b) if the board of education fails to
certify a resolution approving the amendment to the board of township
trustees within the time prescribed by division (D) of this section,
the board of township trustees shall not adopt the amendment.
No
approval under division (L)(3) of this section shall be required for
an amendment authorized under division (L)(2) of this section if the
amendment provides for compensation to the city, local, or exempted
village school district in which the incentive district is located
equal in value to the amount of taxes that would be payable to the
school district if the improvements exempted from taxation had not
been exempted for the additional period. Approval is also not
required for an amendment authorized under either division (L)(1) or
(2) of this section from a board of education that has adopted a
resolution waiving its right to approve exemptions from taxation
pursuant to division (D) of this section. If the board of education
has adopted such a resolution, the board of township trustees shall
comply with the notice requirements imposed under section 5709.83 of
the Revised Code before taking formal action to adopt the amendment
unless the board of education has adopted a resolution under that
section waiving its right to receive the notice. Not later than
fourteen days before adopting an amendment authorized under division
(L)(1) or (2) of this section, the board of township trustees shall
deliver a notice identical to a notice required under section 5709.83
of the Revised Code to the board of county commissioners of each
county in which the exempted parcels or incentive district are
located.
Sec.
5709.78.
(A)
A board of county commissioners may, by resolution, declare
improvements to certain parcels of real property located in the
unincorporated territory of the county to be a public purpose. Except
as otherwise provided under division (C) of this section or section
5709.51 of the Revised Code, not more than seventy-five per cent of
an improvement thus declared to be a public purpose may be exempted
from real property taxation, for a period of not more than ten years.
The resolution shall specify the percentage of the improvement to be
exempted and the life of the exemption.
A
resolution adopted under this division shall designate the specific
public infrastructure improvements made, to be made, or in the
process of being made by the county that directly benefit, or that
once made will directly benefit, the parcels for which improvements
are declared to be a public purpose. The service payments provided
for in section 5709.79 of the Revised Code shall be used to finance
the public infrastructure improvements designated in the resolution,
or as provided in section 5709.80 of the Revised Code.
(B)(1)
A board of county commissioners may adopt a resolution creating an
incentive district and declaring improvements to parcels within the
district to be a public purpose and, except as provided in division
(B)(2) of this section, exempt from taxation as provided in this
section, but no board of county commissioners of a county that has a
population that exceeds twenty-five thousand, as shown by the most
recent federal decennial census, shall adopt a resolution that
creates an incentive district if the sum of the taxable value of real
property in the proposed district for the preceding tax year and the
taxable value of all real property in the county that would have been
taxable in the preceding year were it not for the fact that the
property was in an existing incentive district and therefore exempt
from taxation exceeds twenty-five per cent of the taxable value of
real property in the county for the preceding tax year. The district
shall be located within the unincorporated territory of the county
and shall not include any territory that is included within a
district created under division (C) of section 5709.73 of the Revised
Code. The resolution shall delineate the boundary of the proposed
district and specifically identify each parcel within the district. A
proposed district may not include any parcel that is or has been
exempted from taxation under division (A) of this section or that is
or has been within another district created under this division. A
resolution may create more than one such district, and more than one
resolution may be adopted under division (B)(1) of this section.
(2)(a)
Not later than thirty days prior to adopting a resolution under
division (B)(1) of this section, if the county intends to apply for
exemptions from taxation under section 5709.911 of the Revised Code
on behalf of owners of real property located within the proposed
incentive district, the board of county commissioners shall conduct a
public hearing on the proposed resolution. Not later than thirty days
prior to the public hearing, the board shall give notice of the
public hearing and the proposed resolution by first class mail to
every real property owner whose property is located within the
boundaries of the proposed incentive district that is the subject of
the proposed resolution. The board also shall provide the notice by
first class mail to the clerk of each township in which the proposed
incentive district will be located. The notice shall include a map of
the proposed incentive district on which the board of county
commissioners shall have delineated an overlay. The notice shall
inform property owners of the owner's right to exclude the owner's
property from the incentive district if both of the following
conditions are met:
(i)
The owner's entire parcel of property will not be located within the
overlay.
(ii)
The owner has submitted a statement to the board of township trustees
of the township in which the parcel is located indicating the owner's
intent to seek a tax exemption for improvements to the owner's parcel
under section 5709.41 or division (B) or (C) of section 5709.73 of
the Revised Code within the next five years.
When
both of the preceding conditions are met, the owner may exclude the
owner's property from the incentive district by submitting a written
response in accordance with division (B)(2)(b) of this section. The
notice also shall include information detailing the required contents
of the response, the address to which the response may be mailed, and
the deadline for submitting the response.
(b)
Any owner of real property located within the boundaries of an
incentive district proposed under division (B) (1) of this section
who meets the conditions specified in divisions (B)(2)(a)(i) and (ii)
of this section may exclude the property from the proposed incentive
district by submitting a written response to the board not later than
forty-five days after the postmark date on the notice required under
division (B)(2)(a) of this section. The response shall include a copy
of the statement submitted under division (B)(2)(a)(ii) of this
section. The response shall be sent by first class mail or delivered
in person at a public hearing held by the board under division
(B)(2)(a) of this section. The response shall conform to any content
requirements that may be established by the board and included in the
notice provided under division (B)(2)(a) of this section. In the
response, property owners may identify a parcel by street address, by
the manner in which it is identified in the resolution, or by other
means allowing the identity of the parcel to be ascertained.
(c)
Before adopting a resolution under division (B)(1) of this section,
the board shall amend the resolution to exclude any parcel for which
a written response has been submitted under division (B)(2)(b) of
this section. A county shall not apply for exemptions from taxation
under section 5709.911 of the Revised Code for any such parcel, and
service payments may not be required from the owner of the parcel.
Improvements to a parcel excluded from an incentive district under
this division may be exempted from taxation under division (A) of
this section pursuant to a resolution adopted under that division or
under any other section of the Revised Code under which the parcel
qualifies.
(3)(a)
A resolution adopted under division (B)(1) of this section shall
specify the life of the incentive district and the percentage of the
improvements to be exempted, shall designate the public
infrastructure improvements made, to be made, or in the process of
being made, that benefit or serve, or, once made, will benefit or
serve parcels in the district. The resolution also shall identify one
or more specific projects being, or to be, undertaken in the district
that place additional demand on the public infrastructure
improvements designated in the resolution. The project identified
may, but need not be, the project under division (B)(3)(b) of this
section that places real property in use for commercial or industrial
purposes.
A
resolution adopted under division (B)(1) of this section on or after
March 30, 2006, shall not designate police or fire equipment as
public infrastructure improvements, and no service payment provided
for in section 5709.79 of the Revised Code and received by the county
under the resolution shall be used for police or fire equipment.
(b)
A resolution adopted under division (B)(1) of this section may
authorize the use of service payments provided for in section 5709.79
of the Revised Code for the purpose of housing renovations within the
incentive district, provided that the resolution also designates
public infrastructure improvements that benefit or serve the
district, and that a project within the district places real property
in use for commercial or industrial purposes. Service payments may be
used to finance or support loans, deferred loans, and grants to
persons for the purpose of housing renovations within the district.
The resolution shall designate the parcels within the district that
are eligible for housing renovations. The resolution shall state
separately the amount or the percentages of the expected aggregate
service payments that are designated for each public infrastructure
improvement and for the purpose of housing renovations.
(4)
Except with the approval of the board of education of each city,
local, or exempted village school district within the territory of
which the incentive district is or will be located, and subject to
division (D) of this section, the life of an incentive district shall
not exceed ten years, and the percentage of improvements to be
exempted shall not exceed seventy-five per cent. With approval of the
board of education, the life of a district may be not more than
thirty years, and the percentage of improvements to be exempted may
be not more than one hundred per cent. The approval of a board of
education shall be obtained in the manner provided in division (C) of
this section.
(C)(1)
Improvements with respect to a parcel may be exempted from taxation
under division (A) of this section, and improvements to parcels
within an incentive district may be exempted from taxation under
division (B) of this section, for up to ten years or, with the
approval of the board of education of each city, local, or exempted
village school district within which the parcel or district is
located, for up to thirty years. The percentage of the improvements
exempted from taxation may, with such approval, exceed seventy-five
per cent, but shall not exceed one hundred per cent. Not later than
forty-five business days prior to adopting a resolution under this
section declaring improvements to be a public purpose that is subject
to the approval of a board of education under this division, the
board of county commissioners shall deliver to the board of education
a notice stating its intent to adopt a resolution making that
declaration. The notice regarding improvements with respect to a
parcel under division (A) of this section shall identify the parcels
for which improvements are to be exempted from taxation, provide an
estimate of the true value in money of the improvements, specify the
period for which the improvements would be exempted from taxation and
the percentage of the improvements that would be exempted, and
indicate the date on which the board of county commissioners intends
to adopt the resolution. The notice regarding improvements to parcels
within an incentive district under division (B) of this section shall
delineate the boundaries of the district, specifically identify each
parcel within the district, identify each anticipated improvement in
the district, provide an estimate of the true value in money of each
such improvement, specify the life of the district and the percentage
of improvements that would be exempted, and indicate the date on
which the board of county commissioners intends to adopt the
resolution. The board of education, by resolution adopted by a
majority of the board, may approve the exemption for the period or
for the exemption percentage specified in the notice; may disapprove
the exemption for the number of years in excess of ten, may
disapprove the exemption for the percentage of the improvements to be
exempted in excess of seventy-five per cent, or both; or may approve
the exemption on the condition that the board of county commissioners
and the board of education negotiate an agreement providing for
compensation to the school district equal in value to a percentage of
the amount of taxes exempted in the eleventh and subsequent years of
the exemption period or, in the case of exemption percentages in
excess of seventy-five per cent, compensation equal in value to a
percentage of the taxes that would be payable on the portion of the
improvements in excess of seventy-five per cent were that portion to
be subject to taxation, or other mutually agreeable compensation.
(2)
The board of education shall certify its resolution to the board of
county commissioners not later than fourteen days prior to the date
the board of county commissioners intends to adopt its resolution as
indicated in the notice. If the board of education and the board of
county commissioners negotiate a mutually acceptable compensation
agreement, the resolution of the board of county commissioners may
declare the improvements a public purpose for the number of years
specified in that resolution or, in the case of exemption percentages
in excess of seventy-five per cent, for the exemption percentage
specified in the resolution. In either case, if the board of
education and the board of county commissioners fail to negotiate a
mutually acceptable compensation agreement, the resolution may
declare the improvements a public purpose for not more than ten
years, and shall not exempt more than seventy-five per cent of the
improvements from taxation. If the board of education fails to
certify a resolution to the board of county commissioners within the
time prescribed by this section, the board of county commissioners
thereupon may adopt the resolution and may declare the improvements a
public purpose for up to thirty years or, in the case of exemption
percentages proposed in excess of seventy-five per cent, for the
exemption percentage specified in the resolution. The board of county
commissioners may adopt the resolution at any time after the board of
education certifies its resolution approving the exemption to the
board of county commissioners, or, if the board of education approves
the exemption on the condition that a mutually acceptable
compensation agreement be negotiated, at any time after the
compensation agreement is agreed to by the board of education and the
board of county commissioners. If a mutually acceptable compensation
agreement is negotiated between the board of county commissioners and
the board of education, including agreements for payments in lieu of
taxes under section 5709.79 of the Revised Code, the board of county
commissioners shall compensate the joint vocational school district
within which the parcel or district is located at the same rate and
under the same terms received by the city, local, or exempted village
school district.
(3)
If a board of education has adopted a resolution waiving its right to
approve exemptions from taxation under this section and the
resolution remains in effect, approval of such exemptions by the
board of education is not required under division (C) of this
section. If a board of education has adopted a resolution allowing a
board of county commissioners to deliver the notice required under
division (C) of this section fewer than forty-five business days
prior to approval of the resolution by the board of county
commissioners, the board of county commissioners shall deliver the
notice to the board of education not later than the number of days
prior to such approval as prescribed by the board of education in its
resolution. If a board of education adopts a resolution waiving its
right to approve exemptions or shortening the notification period,
the board of education shall certify a copy of the resolution to the
board of county commissioners. If the board of education rescinds
such a resolution, it shall certify notice of the rescission to the
board of county commissioners.
(4)
Nothing in division (C) of this section prohibits the board of county
commissioners from amending the resolution under section 5709.51 of
the Revised Code to extend the term of the exemption.
(D)(1)
If a proposed resolution under division (B)(1) of this section
exempts improvements with respect to a parcel within an incentive
district for more than ten years, or the percentage of the
improvement exempted from taxation exceeds seventy-five per cent, not
later than forty-five business days prior to adopting the resolution
the board of county commissioners shall deliver to the board of
township trustees of any township within which the incentive district
is or will be located a notice that states its intent to adopt a
resolution creating an incentive district. The notice shall include a
copy of the proposed resolution, identify the parcels for which
improvements are to be exempted from taxation, provide an estimate of
the true value in money of the improvements, specify the period of
time for which the improvements would be exempted from taxation,
specify the percentage of the improvements that would be exempted
from taxation, and indicate the date on which the board intends to
adopt the resolution.
(2)
The board of township trustees, by resolution adopted by a majority
of the board, may object to the exemption for the number of years in
excess of ten, may object to the exemption for the percentage of the
improvement to be exempted in excess of seventy-five per cent, or
both. If the board of township trustees objects, the board of
township trustees may negotiate a mutually acceptable compensation
agreement with the board of county commissioners. In no case shall
the compensation provided to the board of township trustees exceed
the property taxes forgone due to the exemption. If the board of
township trustees objects, and the board of township trustees and the
board of county commissioners fail to negotiate a mutually acceptable
compensation agreement, the resolution adopted under division (B)(1)
of this section shall provide to the board of township trustees
compensation in the eleventh and subsequent years of the exemption
period equal in value to not more than fifty per cent of the taxes
that would be payable to the township or, if the board of township
trustee's objection includes an objection to an exemption percentage
in excess of seventy-five per cent, compensation equal in value to
not more than fifty per cent of the taxes that would be payable to
the township on the portion of the improvement in excess of
seventy-five per cent, were that portion to be subject to taxation.
The board of township trustees shall certify its resolution to the
board of county commissioners not later than thirty days after
receipt of the notice.
(3)
If the board of township trustees does not object or fails to certify
a resolution objecting to an exemption within thirty days after
receipt of the notice, the board of county commissioners may adopt
its resolution, and no compensation shall be provided to the board of
township trustees. If the board of township trustees certifies its
resolution objecting to the commissioners' resolution, the board of
county commissioners may adopt its resolution at any time after a
mutually acceptable compensation agreement is agreed to by the board
of county commissioners and the board of township trustees. If the
board of township trustees certifies a resolution objecting to the
commissioners' resolution, the board of county commissioners may
adopt its resolution at any time after a mutually acceptable
compensation agreement is agreed to by the board of county
commissioners and the board of township trustees, or, if no
compensation agreement is negotiated, at any time after the board of
county commissioners in the proposed resolution to provide
compensation to the board of township trustees of fifty per cent of
the taxes that would be payable to the township in the eleventh and
subsequent years of the exemption period or on the portion of the
improvement in excess of seventy-five per cent, were that portion to
be subject to taxation.
(E)
Service payments in lieu of taxes that are attributable to any amount
by which the effective tax rate of either a renewal levy with an
increase or a replacement levy exceeds the effective tax rate of the
levy renewed or replaced, or that are attributable to an additional
levy, for a levy authorized by the voters for any of the following
purposes on or after January 1, 2006, and which are provided pursuant
to a resolution creating an incentive district under division (B)(1)
of this section that is adopted on or after January 1, 2006, shall be
distributed to the appropriate taxing authority as required under
division (D) of section 5709.79 of the Revised Code in an amount
equal to the amount of taxes from that additional levy or from the
increase in the effective tax rate of such renewal or replacement
levy that would have been payable to that taxing authority from the
following levies were it not for the exemption authorized under
division (B) of this section:
(1)
A tax levied under division (L) of section 5705.19 or section
5705.191 or 5705.222 of the Revised Code for community developmental
disabilities programs and services pursuant to Chapter 5126. of the
Revised Code;
(2)
A tax levied under division (Y) of section 5705.19 of the Revised
Code for providing or maintaining senior citizens services or
facilities;
(3)
A tax levied under section 5705.22 of the Revised Code for county
hospitals;
(4)
A tax levied by a joint-county district or by a county under section
5705.19, 5705.191, or 5705.221 of the Revised Code for alcohol, drug
addiction, and mental health services or facilities;
(5)
A tax levied under section 5705.23 of the Revised Code for library
purposes;
(6)
A tax levied under section 5705.24 of the Revised Code for the
support of children services and the placement and care of children;
(7)
A tax levied under division (Z) of section 5705.19 of the Revised
Code for the provision and maintenance of zoological park services
and facilities under section 307.76 of the Revised Code;
(8)
A tax levied under section 511.27 or division (H) of section 5705.19
of the Revised Code for the support of township park districts;
(9)
A tax levied under division (A), (F), or (H) of section 5705.19 of
the Revised Code for parks and recreational purposes of a joint
recreation district organized pursuant to division (B) of section
755.14 of the Revised Code;
(10)
A tax levied under section 1545.20 or 1545.21 of the Revised Code for
park district purposes;
(11)
A tax levied under section 5705.191 of the Revised Code for the
purpose of making appropriations for public assistance; human or
social services; public relief; public welfare; public health and
hospitalization; and support of general hospitals;
(12)
A tax levied under section 3709.29 of the Revised Code for a general
health district program.
(F)
An exemption from taxation granted under this section commences with
the tax year specified in the resolution so long as the year
specified in the resolution commences after the effective date of the
resolution. If the resolution specifies a year commencing before the
effective date of the resolution or specifies no year whatsoever, the
exemption commences with the tax year in which an exempted
improvement first appears on the tax list and duplicate of real and
public utility property and that commences after the effective date
of the resolution. In lieu of stating a specific year, the resolution
may provide that the exemption commences in the tax year in which the
value of an improvement exceeds a specified amount or in which the
construction of one or more improvements is completed, provided that
such tax year commences after the effective date of the resolution.
With respect to the exemption of improvements to parcels under
division (A) of this section, the resolution may allow for the
exemption to commence in different tax years on a parcel-by-parcel
basis, with a separate exemption term specified for each parcel.
Except
as otherwise provided in this division, the exemption ends on the
date specified in the resolution as the date the improvement ceases
to be a public purpose or the incentive district expires, or ends on
the date on which the county can no longer require annual service
payments in lieu of taxes under section 5709.79 of the Revised Code,
whichever occurs first. The exemption of an improvement with respect
to a parcel or within an incentive district may end on a later date,
as specified in the resolution, if the board of commissioners and the
board of education of the city, local, or exempted village school
district within which the parcel or district is located have entered
into a compensation agreement under section 5709.82 of the Revised
Code with respect to the improvement, and the board of education has
approved the term of the exemption under division (C)(1) of this
section, but in no case shall the improvement be exempted from
taxation for more than thirty years. Exemptions shall be claimed and
allowed in the same or a similar manner as in the case of other real
property exemptions. If an exemption status changes during a tax
year, the procedure for the apportionment of the taxes for that year
is the same as in the case of other changes in tax exemption status
during the year.
(G)
If the board of county commissioners is not required by this section
to notify the board of education of the board of county
commissioners' intent to declare improvements to be a public purpose,
the board of county commissioners shall comply with the notice
requirements imposed under section 5709.83 of the Revised Code before
taking formal action to adopt the resolution making that declaration,
unless the board of education has adopted a resolution under that
section waiving its right to receive such a notice.
(H)
The county, not later than fifteen days after the adoption of a
resolution under this section, shall submit to the director of
housing
and
development
a copy of the resolution. On or before the thirty-first day of March
of each year, the county shall submit a status report to the
director. The report shall indicate, in the manner prescribed by the
director, the progress of the project during each year that an
exemption remains in effect, including a summary of the receipts from
service payments in lieu of taxes; expenditures of money from the
fund created under section 5709.80 of the Revised Code; a description
of the public infrastructure improvements and housing renovations
financed with such expenditures; and a quantitative summary of
changes in employment and private investment resulting from each
project.
(I)
Nothing in this section shall be construed to prohibit a board of
county commissioners from declaring to be a public purpose
improvements with respect to more than one parcel.
(J)
If a parcel is located in a new community district in which the new
community authority imposes a community development charge on the
basis of rentals received from leases of real property as described
in division (L)(2) of section 349.01 of the Revised Code, the parcel
may not be exempted from taxation under this section.
Sec.
5709.82.
(A)
As used in this section:
(1)
"New employee" means both of the following:
(a)
Persons employed in the construction of real property exempted from
taxation under the chapters or sections of the Revised Code
enumerated in division (B) of this section;
(b)
Persons not described by division (A)(1)(a) of this section who are
first employed at the site of such property and who within the two
previous years have not been subject, prior to being employed at that
site, to income taxation by the municipal corporation within whose
territory the site is located on income derived from employment for
the person's current employer. "New employee" does not
include any person who replaces a person who is not a new employee
under division (A)(1) of this section.
(2)
"Infrastructure costs" means costs incurred by a municipal
corporation in a calendar year to acquire, construct, reconstruct,
improve, plan, or equip real or tangible personal property that
directly benefits or will directly benefit the exempted property. If
the municipal corporation finances the acquisition, construction,
reconstruction, improvement, planning, or equipping of real or
tangible personal property that directly benefits the exempted
property by issuing debt, "infrastructure costs" means the
annual debt charges incurred by the municipal corporation from the
issuance of such debt. Real or tangible personal property directly
benefits exempted property only if the exempted property places or
will place direct, additional demand on the real or tangible personal
property for which such costs were or will be incurred.
(3)
"Taxing unit" has the same meaning as in division (H) of
section 5705.01 of the Revised Code.
(B)(1)
Except as otherwise provided under division (C) of this section, the
legislative authority of any political subdivision that has acted
under the authority of Chapter 725. or 1728., sections 3735.65 to
3735.70, or section 5709.40, 5709.41, 5709.45, 5709.62, 5709.63,
5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 of the Revised Code
to grant an exemption from taxation for real or tangible personal
property may negotiate with the board of education of each city,
local, exempted village, or joint vocational school district or other
taxing unit within the territory of which the exempted property is
located, and enter into an agreement whereby the school district or
taxing unit is compensated for tax revenue foregone by the school
district or taxing unit as a result of the exemption. Except as
otherwise provided in division (B)(1) of this section, if a political
subdivision enters into more than one agreement under this section
with respect to a tax exemption, the political subdivision shall
provide to each school district or taxing unit with which it
contracts the same percentage of tax revenue foregone by the school
district or taxing unit, which may be based on a good faith
projection made at the time the exemption is granted. Such percentage
shall be calculated on the basis of amounts paid by the political
subdivision and any amounts paid by an owner under division (B)(2) of
this section. A political subdivision may provide a school district
or other taxing unit with a smaller percentage of foregone tax
revenue than that provided to other school districts or taxing units
only if the school district or taxing unit expressly consents in the
agreement to receiving a smaller percentage. If a subdivision has
acted under the authority of section 3735.671, 5709.40, 5709.41,
5709.45, 5709.62, 5709.63, 5709.632, 5709.73, or 5709.78 of the
Revised Code and enters into a compensation agreement with a city,
local, or exempted village school district, the subdivision shall
provide compensation to the joint vocational school district within
the territory of which the exempted property is located at the same
rate and under the same terms as received by the city, local, or
exempted village school district.
(2)
An owner of property exempted from taxation under the authority
described in division (B)(1) of this section may, by becoming a party
to an agreement described in division (B)(1) of this section or by
entering into a separate agreement with a school district or other
taxing unit, agree to compensate the school district or taxing unit
by paying cash or by providing property or services by gift, loan, or
otherwise. If the owner's property is exempted under the authority of
section 3735.671, 5709.40, 5709.41, 5709.45, 5709.62, 5709.63,
5709.632, 5709.73, or 5709.78 of the Revised Code and the owner
enters into a compensation agreement with a city, local, or exempted
village school district, the owner shall provide compensation to the
joint vocational school district within the territory of which the
owner's property is located at the same rate and under the same terms
as received by the city, local, or exempted village school district.
(C)
This division does not apply to the following:
(1)
The legislative authority of a municipal corporation that has acted
under the authority of division (H) of section 715.70 or division (U)
of section 715.72 of the Revised Code to consent to the granting of
an exemption from taxation for real or tangible personal property in
a joint economic development district.
(2)
The legislative authority of a municipal corporation that has
specified in an ordinance adopted under section 5709.40, 5709.41, or
5709.45 of the Revised Code that payments in lieu of taxes provided
for under section 5709.42 or 5709.46 of the Revised Code shall be
paid to the city, local, or exempted village school district in which
the improvements are located in the amount of taxes that would have
been payable to the school district if the improvements had not been
exempted from taxation, as directed in the ordinance.
If
the legislative authority of any municipal corporation has acted
under the authority of Chapter 725. or 1728. or section 3735.671,
5709.40, 5709.41, 5709.45, 5709.62, 5709.63, 5709.632, or 5709.88, or
a housing officer under section 3735.67 of the Revised Code, to grant
or consent to the granting of an exemption from taxation for real or
tangible personal property on or after July 1, 1994, the municipal
corporation imposes a tax on incomes, and the payroll of new
employees resulting from the exercise of that authority equals or
exceeds one million dollars, or two million dollars, as adjusted
under division (E) of this section, in the case of the authority
exercised under section 3735.67 or 3735.671 of the Revised Code, in
any tax year for which such property is exempted, the legislative
authority and the board of education of each city, local, or exempted
village school district within the territory of which the exempted
property is located shall attempt to negotiate an agreement providing
for compensation to the school district for all or a portion of the
tax revenue the school district would have received had the property
not been exempted from taxation. The agreement may include as a party
the owner of the property exempted or to be exempted from taxation
and may include provisions obligating the owner to compensate the
school district by paying cash or providing property or services by
gift, loan, or otherwise. Such an obligation is enforceable by the
board of education of the school district pursuant to the terms of
the agreement.
If
the legislative authority and board of education fail to negotiate an
agreement that is mutually acceptable within six months of formal
approval by the legislative authority of the instrument granting the
exemption, the legislative authority shall compensate the school
district in the amount and manner prescribed by division (D) of this
section.
(D)
Annually, the legislative authority of a municipal corporation
subject to this division shall pay to the city, local, or exempted
village school district within the territory of which the exempted
property is located an amount equal to fifty per cent of the
difference between the amount of taxes levied and collected by the
municipal corporation on the incomes of new employees in the calendar
year ending on the day the payment is required to be made, and the
amount of any infrastructure costs incurred in that calendar year.
For purposes of such computation, the amount of infrastructure costs
shall not exceed thirty-five per cent of the amount of those taxes
unless the board of education of the school district, by resolution
adopted by a majority of the board, approves an amount in excess of
that percentage. If the amount of those taxes or infrastructure costs
must be estimated at the time the payment is made, payments in
subsequent years shall be adjusted to compensate for any departure of
those estimates from the actual amount of those taxes.
A
municipal corporation required to make a payment under this section
shall make the payment from its general fund or a special fund
established for the purpose. The payment is payable on the
thirty-first day of December of the tax year for or in which the
exemption from taxation commences and on that day for each subsequent
tax year property is exempted and the legislative authority and board
fail to negotiate an acceptable agreement under division (C) of this
section.
(E)(1)
The director of
housing
and
development
shall adjust, in September of each year, the payroll threshold
described in division (C)(2) of this section applicable to the
exercise of authority under section 3735.67 or 3735.671 of the
Revised Code by completing the following computations:
(a)
Determine the percentage increase in the gross domestic product
deflator determined by the bureau of economic analysis of the United
States department of commerce from the first day of January of the
preceding calendar year to the last day of December of the preceding
calendar year;
(b)
Multiply that percentage increase by the threshold applicable for the
current year;
(c)
Add the resulting product to the threshold applicable for the current
year;
(d)
Round the resulting sum to the nearest one thousand dollars.
(2)
The director shall certify the amount of the adjustment under
division (E)(1) of this section to each legislative authority of a
municipal corporation and housing officer designated by a municipal
corporation exercising authority under section 3735.67 or 3735.671 of
the Revised Code not later than the first day of December of the year
the director computes the adjustment. The certified amount applies to
the ensuing calendar year and each calendar year thereafter until the
director makes a new adjustment. The director shall not calculate a
new adjustment in any year in which the resulting threshold amount
from the adjustment would be less than the threshold for the current
year.
Sec.
5709.87.
(A)
As used in this section:
(1)
"Improvement," "building," "fixture,"
and "structure" have the same meanings as in section
5701.02 of the Revised Code.
(2)
"Property," "remedy," and "remedial
activities" have the same meanings as in section 3746.01 of the
Revised Code.
(B)
The director of environmental protection, after issuing a covenant
not to sue for property under section 3746.12 of the Revised Code and
determining that remedies or remedial activities have commenced or
been completed at that property to the satisfaction of the director,
shall certify to the tax commissioner and to the director of
housing
and
development
services
that
such a covenant has been issued, that such remedies or remedial
activities have occurred at that property, and the date on which
those remedial activities began. The certification shall be in such
form as is agreed upon by the
directors
director
of
environmental protection
and
,
the director of housing and
development
services
,
and
the tax commissioner and shall include a description of the property
in sufficient detail for the tax commissioner and director of
housing
and
development
services
to
determine the boundaries of the property entitled to exemption from
taxation under this section.
(C)(1)(a)
Upon receipt by the tax commissioner of a certification for property
under division (B) of this section, the commissioner shall issue an
order granting an exemption from real property taxation of the
increase in the assessed value of land constituting property that is
described in the certification and of the increase in the assessed
value of improvements, buildings, fixtures, and structures that are
situated on that land on the tax lien date of the year in which the
remedial activities began. For each tax year of the exemption allowed
under this section, this increase in assessed value shall equal the
amount by which the assessed value of that land or those
improvements, buildings, fixtures, or structures on the tax lien date
of that year as indicated on the tax list for that year exceeds the
assessed value of that land or those improvements, buildings,
fixtures, or structures on the tax lien date of the year in which the
remedial activities began as indicated on the tax list for that year.
The exemption shall commence on the first day of the tax year
including the day on which the order is issued and shall end on the
last day of the tenth tax year after issuance of the order. The order
shall include a description of the property and the tax years for
which the property is to be exempted from taxation. The commissioner
shall send copies of the exemption order to the owner of record of
the property to which the exemption applies and to the county auditor
of each county in which any portion of that property is located.
(b)
Within sixty days after receiving the commissioner's order, the owner
of record of the property may notify the commissioner in writing that
the owner does not want the exemption from real property taxation
provided under division (C)(1) of this section to apply. Upon
receiving such a notification from the property owner of record, the
commissioner shall issue a subsequent order rescinding the previously
granted exemption.
(2)
The director of
housing
and
development
services
shall
maintain a record of certifications received under this section for
purposes of section 5709.88 of the Revised Code.
(D)
Any sale or other transfer of the property does not affect an
exemption granted under division (C) of this section. The exemption
shall continue in effect thereafter for the full period stated in the
exemption order.
(E)
If at any time the director revokes a covenant not to sue under
Chapter 3746. of the Revised Code and rules adopted under it for
property concerning which the commissioner has issued an exemption
order under division (C) of this section, the director shall so
notify the commissioner and the legislative authority of the
municipal corporation and county in which the property is located.
The commissioner immediately shall rescind the exemption order and
shall so notify the owner of record of the property and the county
auditor of each county in which any portion of the property is
located.
Upon
revocation of the covenant not to sue, the owner of record shall pay
the amount of taxes that would have been charged against the property
had the property not been exempted from taxation for the period
beginning with commencement of the exemption and ending with the date
of revocation of the covenant not to sue. The county auditor shall
return the property to the tax list and enter on the tax list the
amount so payable as current taxes charged against the property.
Taxes required to be paid pursuant to this section are payable in
full on the first succeeding day on which the first one-half of taxes
is required to be paid under section 323.12 of the Revised Code. If
such taxes are not paid in full when due, a penalty shall be charged,
and interest shall accrue on those taxes, as provided in section
323.121 of the Revised Code. In cases of underpayment or nonpayment,
the deficiency shall be collected as otherwise provided for the
collection of delinquent real property taxes.
Sec.
5709.88.
(A)
As used in sections 5709.88
through
to
5709.883 of the Revised Code:
(1)
"Enterprise," "expand," "renovate,"
"project," "project site," "position,"
"full-time employee," "first used in business,"
and "making retail sales" have the same meanings as in
section 5709.61 of the Revised Code.
(2)
"Property," "remedy," and "remedial
activities" have the same meanings as in section 3746.01 of the
Revised Code.
(3)
"Facility" means an enterprise's place of business,
including land constituting property that is described in a
certification under division (B) of section 5709.87 of the Revised
Code, and buildings, improvements, fixtures, structures, machinery,
equipment, and other materials, except inventory, used in business
and situated on such land. "Facility" does not include any
portion of an enterprise's place of business used primarily for
making retail sales unless the place of business is located in an
impacted city as defined in section 1728.01 of the Revised Code.
(4)
"New employee" means a full-time employee first employed by
an enterprise at a facility that is a project site after the
enterprise enters into an agreement under division (D) of this
section.
(5)
"Remediate" means to make expenditures for remedies or
remedial activities equal to at least ten per cent of the true value
in money of the land, buildings, improvements, structures, and
fixtures constituting a facility as determined for purposes of
property taxation immediately prior to formal approval of an
agreement under division (D) of this section.
(6)
"Occupy" means to make expenditures to alter or repair a
vacant facility equal to at least twenty per cent of the market value
of the facility prior to such expenditures, as determined for the
purposes of local property taxation.
(7)
"Vacant facility" means a facility that has been vacant for
at least ninety days immediately preceding the date on which an
agreement is entered into under division (D) of this section.
(B)
The legislative authority of any county or municipal corporation
within which is located property that is the subject of a
certification under division (B) of section 5709.87 of the Revised
Code may enter into an agreement with an enterprise under division
(D) of this section, provided that the legislative authority of a
county may enter into such agreements with respect only to property
located within the unincorporated territory of the county. Prior to
entering into such an agreement, the legislative authority shall
petition the director of
housing
and
development
for the director's confirmation that the property is the subject of
such a certification, and the director, within thirty days after
receipt of such a petition, shall confirm whether such a
certification has been issued. The petition shall be accompanied by a
description of the property in the form and manner prescribed by the
director.
(C)
Any enterprise that wishes to enter into an agreement with a
legislative authority under division (D) of this section shall submit
a proposal to the legislative authority on a form prescribed by the
director of
housing
and
development
together with the application fee established under section 5709.882
of the Revised Code. The form shall require the following
information:
(1)
An estimate of the number of new employees whom the enterprise
intends to hire, or of the number of employees whom the enterprise
intends to retain, at a facility that is a project site, and an
estimate of the amount of payroll of the enterprise attributable to
these employees;
(2)
An estimate of the amount to be invested by the enterprise to
establish, expand, renovate, or occupy a facility, including
investment in new buildings, additions or improvements to existing
buildings, machinery, equipment, furniture, fixtures, and inventory;
(3)
A listing of the enterprise's current investment, if any, in a
facility as of the date of the proposal's submission.
The
enterprise shall review and update the listings required under this
division to reflect material changes, and any agreement entered into
under division (D) of this section shall set forth final estimates
and listings as of the time the agreement is entered into. The
legislative authority, on a separate form and at any time, may
require any additional information necessary to determine whether an
enterprise is in compliance with an agreement and to collect the
information required to be reported under section 5709.882 of the
Revised Code.
(D)
Upon receipt and investigation of a proposal under division (C) of
this section, if the legislative authority finds that the enterprise
submitting the proposal is qualified by financial responsibility and
business experience to create and preserve employment opportunities
at the project site and improve the economic climate of the county or
municipal corporation, the legislative authority, after complying
with section 5709.83 of the Revised Code, may enter into, and
formally shall approve, an agreement with the enterprise under which
the enterprise agrees to remediate a facility and to spend an amount
equal to at least two hundred fifty per cent of the true value in
money of the land, buildings, improvements, structures, and fixtures
constituting the facility, as determined for purposes of property
taxation immediately prior to formal approval of the agreement, to
establish, expand, renovate, or occupy a facility and hire new
employees, or preserve employment opportunities for existing
employees, in return for one or more of the following incentives:
(1)
Exemption for a specified number of years, not to exceed ten, of a
specified portion, up to one hundred per cent, of the assessed value
of tangible personal property first used in business at the project
site as a result of the agreement. An exemption granted pursuant to
division (D)(1) of this section applies to inventory required to be
listed pursuant to sections 5711.15 and 5711.16 of the Revised Code,
except that, in the instance of an expansion or other situations in
which an enterprise was in business at the facility prior to the
effective date of the agreement, the inventory that is exempt is that
amount or value of inventory in excess of the amount or value of
inventory required to be listed in the personal property tax return
of the enterprise in the return for the tax year in which the
agreement is entered into.
(2)
Exemption for a specified number of years, not to exceed ten, of a
specified portion, up to one hundred per cent, of the increase,
subsequent to formal approval of the agreement by the legislative
authority, in the assessed valuation of buildings, improvements,
structures, and fixtures constituting the project site;
(3)
Provision for a specified number of years, not to exceed ten, of any
optional services or assistance that the county or municipal
corporation is authorized to provide with regard to the project site.
(E)
All agreements entered into under this section shall be in the form
prescribed under section 5709.881 of the Revised Code.
(F)
Except as otherwise provided in this division, an agreement entered
into under this section shall require that the enterprise pay an
annual fee equal to the greater of one per cent of the dollar value
of incentives offered under the agreement or five hundred dollars,
provided that if the value of the incentives exceeds two hundred
fifty thousand dollars, the fee shall not exceed two thousand five
hundred dollars. The fee shall be payable to the legislative
authority once per year for each year the agreement is effective on
the days and in the form specified in the agreement. Fees paid shall
be deposited in a special fund created for that purpose by the
legislative authority and shall be used by the legislative authority
exclusively for the purpose of complying with section 5709.882 of the
Revised Code and by the tax incentive review council created under
section 5709.883 of the Revised Code exclusively for the purposes of
performing the duties prescribed under that section. The legislative
authority may waive or reduce the amount of the fee charged against
an enterprise, but such a waiver or reduction does not affect the
obligations of the legislative authority or the tax incentive review
council to comply with section 5709.882 or 5709.883 of the Revised
Code.
(G)
When an agreement is entered into under this section, the legislative
authority authorizing the agreement shall forward a copy of the
agreement to the director of
housing
and
development
and to the tax commissioner within fifteen days after the agreement
is entered into.
(H)
After an agreement is entered into, the enterprise shall file with
each personal property tax return required to be filed while the
agreement is in effect, an informational return, on a form prescribed
by the tax commissioner for that purpose, setting forth separately
the property, and related costs and values, exempted from taxation
under the agreement.
(I)
The legislative authority may require the owner of record to pay the
amount of taxes that, during the period beginning with the
commencement of the exemption and ending with the date of revocation
of the covenant not to sue under Chapter 3746. of the Revised Code,
would have been charged against the property had the property not
been exempted from taxation pursuant to an agreement entered into
under this section. In the case of real property, the proper county
auditor shall determine the taxable value of the property for each of
the tax years for which the property had been exempted from taxation,
and shall determine the amount of taxes that would have been charged
against the property had the property been subject to taxation each
of those years. The county treasurer shall issue a tax bill as
otherwise required by law, and the taxes shall be payable in full on
the first succeeding day on which the first one-half of taxes is
required to be paid under section 323.12 of the Revised Code. If such
real property taxes are not paid in full when due, a penalty shall be
charged, and interest shall accrue on those taxes, as provided in
section 323.121 of the Revised Code. In cases of underpayment or
nonpayment, the deficiency shall be collected as otherwise provided
for the collection of delinquent real property taxes.
In
the case of tangible personal property, the tax commissioner shall
determine the taxable value of the property for each of the tax years
for which the property had been exempted from taxation on the basis
of the informational return required to be filed under this section
or any further assessment necessary to make such a determination, and
certify that determination to the proper county auditor, who shall
add the property to the proper tax lists and duplicates. Taxes shall
be charged against such property at the rates charged for the
respective years for which taxes are charged under this division. The
county treasurer shall issue a tax bill as otherwise required by law,
and the taxes shall be payable on the next succeeding date for the
payment of current taxes. If the taxes are not paid in full when due,
a penalty shall be charged, and interest shall accrue, as otherwise
provided in sections 5719.03 and 5719.041 of the Revised Code. In
cases of underpayment or nonpayment, the deficiency shall be
collected as otherwise provided in Chapter 5719. of the Revised Code.
Sec.
5709.882.
(A)
On or before the thirty-first day of March each year, a municipal
corporation or county that has entered into an agreement with an
enterprise under section 5709.88 of the Revised Code shall submit to
the directors of
housing
and
development
services
and
environmental protection and the board of education of each school
district of which a municipal corporation or county to which such an
agreement applies is a part a report on all such agreements in effect
during the preceding calendar year. The report shall include all of
the following information:
(1)
The number of enterprises that are subject to such agreements and the
number of full-time employees subject to those agreements in the
county or municipal corporation;
(2)
The number of agreements approved and executed during the calendar
year for which the report is submitted, the total number of
agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired during
the calendar year for which the report is submitted, and the number
of agreements scheduled to expire during the calendar year in which
the report is submitted. For each agreement that expired during the
calendar year for which the report is submitted, the municipal
corporation or county shall include the amount of taxes exempted and
the estimated dollar value of any other incentives provided under the
agreement.
(3)
The number of agreements receiving compliance reviews by the tax
incentive review council in the municipal corporation or county under
section 5709.883 of the Revised Code during the calendar year for
which the report is submitted, including all of the following
information:
(a)
The number of agreements the terms of which an enterprise has
complied with, indicating separately for each such agreement the
value of the real and personal property exempted pursuant to the
agreement and a comparison of the stipulated and actual schedules for
hiring new employees, for retaining existing employees, for the
amount of payroll of the enterprise attributable to these employees,
and for remediating and investing in establishing, expanding,
renovating, or occupying a facility;
(b)
The number of agreements the terms of which an enterprise has failed
to comply with, indicating separately for each such agreement the
value of the real and personal property exempted pursuant to the
agreement and a comparison of the stipulated and actual schedules for
hiring new employees, for retaining existing employees, for the
amount of payroll of the enterprise attributable to these employees,
and for remediating and investing in establishing, expanding,
renovating, or occupying a facility;
(c)
The number of agreements about which the tax incentive review council
made recommendations to the legislative authority of the municipal
corporation or county, and the number of such recommendations that
have not been followed;
(d)
The number of agreements rescinded during the calendar year for which
the report is submitted.
(4)
The number of enterprises that are subject to agreements and the
number of new employees hired and existing employees retained by each
such enterprise;
(5)(a)
The number of enterprises that are subject to agreements and that
closed or reduced employment at any place of business within the
state for the primary purpose of remediating and establishing,
expanding, renovating, or occupying a facility, indicating separately
for each such enterprise the political subdivision in which the
enterprise closed or reduced employment at a place of business and
the number of full-time employees transferred and retained by each
such place of business;
(b)
The number of enterprises that are subject to agreements and that
closed or reduced employment at any place of business outside the
state for the primary purpose of remediating and establishing,
expanding, renovating, or occupying a facility.
(B)
Upon the failure of a municipal corporation or county to comply with
division (A) of this section, both of the following apply:
(1)
Beginning on the first day of April of the calendar year in which the
municipal corporation or county fails to comply with that division,
the municipal corporation or county shall not enter into any
agreements with an enterprise under section 5709.88 of the Revised
Code until the municipal corporation or county has complied with
division (A) of this section;
(2)
On the first day of each ensuing calendar month until the municipal
corporation or county complies with that division, the director of
housing
and
development
services
shall
either order the proper county auditor to deduct from the next
succeeding payment of taxes to the municipal corporation or county
under section 321.31, 321.32, 321.33, or 321.34 of the Revised Code
an amount equal to five hundred dollars for each calendar month the
municipal corporation or county fails to comply with that division,
or order the county auditor to deduct such an amount from the next
succeeding payment to the municipal corporation or county from the
undivided local government fund under section 5747.51 of the Revised
Code. At the time such a payment is made, the county auditor shall
comply with the director's order by issuing a warrant, drawn on the
fund from which such money would have been paid, to the director of
housing
and
development
services
,
who shall deposit the warrant into the contaminated sites development
program administration fund created in division (C) of this section.
(C)
The director, by rule, shall establish the state's application fee
for applications submitted to a municipal corporation or county to
enter into an agreement under section 5709.88 of the Revised Code. In
establishing the amount of the fee, the director shall consider the
state's cost of administering this section and section 5709.88 of the
Revised Code. The director may change the amount of the fee at such
times and in such increments as the director considers necessary. Any
municipal corporation or county that receives an application shall
collect the application fee and remit the fee for deposit in the
state treasury to the credit of the contaminated sites development
program administration fund, which is hereby created. Money credited
to the fund shall be used by the
department
of housing and
development
services
agency
to
pay the costs of administering this section and section 5709.88 of
the Revised Code.
Sec.
5717.02.
(A)
Except as otherwise provided by law, appeals from final
determinations by the tax commissioner of any preliminary, amended,
or final tax assessments, reassessments, valuations, determinations,
findings, computations, or orders made by the commissioner may be
taken to the board of tax appeals by the taxpayer, by the person to
whom notice of the tax assessment, reassessment, valuation,
determination, finding, computation, or order by the commissioner is
required by law to be given, by the director of budget and management
if the revenues affected by that decision would accrue primarily to
the state treasury, or by the county auditors of the counties to the
undivided general tax funds of which the revenues affected by that
decision would primarily accrue. Appeals from the redetermination by
the director of
housing
and
development
services
under
division (B) of section 5709.64 or division (A) of section 5709.66 of
the Revised Code may be taken to the board of tax appeals by the
enterprise to which notice of the redetermination is required by law
to be given. Appeals from a decision of the tax commissioner or
county auditor concerning an application for a property tax exemption
may be taken to the board of tax appeals by the applicant or by a
school district that filed a statement concerning that application
under division (C) of section 5715.27 of the Revised Code. Appeals
from a redetermination by the director of job and family services
under section 5733.42 of the Revised Code may be taken by the person
to which the notice of the redetermination is required by law to be
given under that section.
(B)
The appeals shall be taken by the filing of a notice of appeal with
the board, and with the tax commissioner if the tax commissioner's
action is the subject of the appeal, with the county auditor if the
county auditor's action is the subject of the appeal, with the
director of
housing
and
development
services
if
that director's action is the subject of the appeal, or with the
director of job and family services if that director's action is the
subject of the appeal. The notice of appeal shall be filed within
sixty days after service of the notice of the tax assessment,
reassessment, valuation, determination, finding, computation, or
order by the commissioner, property tax exemption determination by
the commissioner or the county auditor, or redetermination by the
director has been given as provided in section 5703.37, 5709.64,
5709.66, or 5733.42 of the Revised Code. The notice of appeal may be
filed in person or by certified mail, express mail, facsimile
transmission, electronic transmission or by authorized delivery
service. If the notice of appeal is filed by certified mail, express
mail, or authorized delivery service as provided in section 5703.056
of the Revised Code, the date of the United States postmark placed on
the sender's receipt by the postal service or the date of receipt
recorded by the authorized delivery service shall be treated as the
date of filing. If notice of appeal is filed by facsimile
transmission or electronic transmission, the date and time the notice
is received by the board shall be the date and time reflected on a
timestamp provided by the board's electronic system, and the appeal
shall be considered filed with the board on the date reflected on
that timestamp. Any timestamp provided by another computer system or
electronic submission device shall not affect the time and date the
notice is received by the board. The notice of appeal shall have
attached to it and incorporated in it by reference a true copy of the
notice sent by the commissioner, county auditor, or director to the
taxpayer, enterprise, or other person of the final determination or
redetermination complained of, but failure to attach a copy of that
notice and to incorporate it by reference in the notice of appeal
does not invalidate the appeal.
(C)
A notice of appeal shall contain a short and plain statement of the
claimed errors in the determination or redetermination of the tax
commissioner, county auditor, or director showing that the appellant
is entitled to relief and a demand for the relief to which the
appellant claims to be entitled. An appellant may amend the notice of
appeal once as a matter of course within sixty days after the
certification of the transcript. Otherwise, an appellant may amend
the notice of appeal only after receiving leave of the board or the
written consent of each adverse party. Leave of the board shall be
freely given when justice so requires.
(D)
Upon the filing of a notice of appeal, the tax commissioner, county
auditor, or the director, as appropriate, shall certify to the board
a transcript of the record of the proceedings before the
commissioner, auditor, or director, together with all evidence
considered by the commissioner, auditor, or director in connection
with the proceedings. Those appeals or applications may be heard by
the board at its office in Columbus or in the county where the
appellant resides, or it may cause its examiners to conduct the
hearings and to report to it their findings for affirmation or
rejection.
(E)
The board may order the appeal to be heard upon the record and the
evidence certified to it by the commissioner, county auditor, or
director, but upon the application of any interested party the board
shall order the hearing of additional evidence, and it may make an
investigation concerning the appeal that it considers proper. An
appeal may proceed pursuant to section 5703.021 of the Revised Code
on the small claims docket if the appeal qualifies under that
section.
Sec.
5725.32.
Upon
the issuance of a tax credit certificate by the director of
housing
and
development,
a refundable credit granted by the tax credit authority under section
122.17 of the Revised Code may be claimed against the tax imposed by
section 5725.18 of the Revised Code. The credit shall be claimed in
the calendar year specified in the certificate issued by the director
of
housing
and
development.
Sec.
5725.33.
(A)
Except as otherwise provided in this section, terms used in this
section have the same meaning as section 45D of the Internal Revenue
Code, any related proposed, temporary, or final regulations
promulgated under the Internal Revenue Code, any rules or guidance of
the internal revenue service or the United States department of the
treasury, and any related rules or guidance issued by the community
development financial institutions fund of the United States
department of the treasury, as such law, regulations, rules, and
guidance exist on October 16, 2009.
As
used in this section:
(1)
"Adjusted purchase price" means the amount paid for the
portion of a qualified equity investment approved or certified by the
director of
housing
and
development
services
for
a qualified community development entity in accordance with rules
adopted under division (E) of this section.
(2)
"Applicable percentage" means zero per cent for each of the
first two credit allowance dates, seven per cent for the third credit
allowance date, and eight per cent for the four following credit
allowance dates.
(3)
"Credit allowance date" means the date, on or after January
1, 2010, a qualified equity investment is made and each of the six
anniversary dates thereafter. For qualified equity investments made
after October 16, 2009, but before January 1, 2010, the initial
credit allowance date is January 1, 2010, and each of the six
anniversary dates thereafter is on the first day of January of each
year.
(4)
"Qualified community development entity" includes only
entities:
(a)
That have entered into an allocation agreement with the community
development financial institutions fund of the United States
department of the treasury with respect to credits authorized by
section 45D of the Internal Revenue Code;
(b)
Whose service area includes any portion of this state; and
(c)
That will designate an equity investment in such entities as a
qualified equity investment for purposes of both section 45D of the
Internal Revenue Code and this section.
(5)
"Qualified equity investment" is limited to an equity
investment in a qualified community development entity that:
(a)
Is acquired after October 16, 2009, at its original issuance solely
in exchange for cash;
(b)
Has at least eighty-five per cent of its cash purchase price used by
the qualified community development entity to make qualified
low-income community investments in qualified active low-income
community businesses in this state, provided that in the seventh year
after a qualified equity investment is made, only seventy-five per
cent of such cash purchase price must be used by the qualified
community development entity to make qualified low-income community
investments in those businesses; and
(c)
Is designated by the issuer as a qualified equity investment.
"Qualified
equity investment" includes any equity investment that would,
but for division (A)(5)(a) of this section, be a qualified equity
investment in the hands of the taxpayer if such investment was a
qualified equity investment in the hands of a prior holder.
(B)
There is hereby allowed a nonrefundable credit against the tax
imposed by section 5725.18 of the Revised Code for an insurance
company holding a qualified equity investment on the credit allowance
date occurring in the calendar year for which the tax is due. The
credit shall equal the applicable percentage of the adjusted purchase
price, subject to divisions (B)(1) and (2) of this section:
(1)
For the purpose of calculating the amount of qualified low-income
community investments held by a qualified community development
entity, an investment shall be considered held by a qualified
community development entity even if the investment has been sold or
repaid, provided that, at any time before the seventh anniversary of
the issuance of the qualified equity investment, the qualified
community development entity reinvests an amount equal to the capital
returned to or received or recovered by the qualified community
development entity from the original investment, exclusive of any
profits realized and costs incurred in the sale or repayment, in
another qualified low-income community investment in this state
within twelve months of the receipt of such capital. If the qualified
low-income community investment is sold or repaid after the sixth
anniversary of the issuance of the qualified equity investment, the
qualified low-income community investment shall be considered held by
the qualified community development entity through the seventh
anniversary of the qualified equity investment's issuance.
(2)
The qualified low-income community investment made in this state
shall equal the sum of the qualified low-income community investments
in each qualified active low-income community business in this state,
not to exceed two million five hundred sixty-four thousand dollars,
in which the qualified community development entity invests,
including such investments in any such businesses in this state
related to that qualified active low-income community business
through majority ownership or control.
The
credit shall be claimed in the order prescribed by section 5725.98 of
the Revised Code. If the amount of the credit exceeds the amount of
tax otherwise due after deducting all other credits in that order,
the excess may be carried forward and applied to the tax due for not
more than four ensuing years.
By
claiming a tax credit under this section, an insurance company waives
its rights under section 5725.222 of the Revised Code with respect to
the time limitation for the assessment of taxes as it relates to
credits claimed that later become subject to recapture under division
(E) of this section.
(C)
The aggregate amount of credit allocations made by the director of
housing
and
development
services
under
this section and sections 5726.54, 5729.16, and 5733.58 of the
Revised Code each fiscal year shall not exceed ten million dollars.
(D)
If any amount of the federal tax credit allowed for a qualified
equity investment for which a credit was received under this section
is recaptured under section 45D of the Internal Revenue Code, or if
the director of
housing
and
development
services
determines
that an investment for which a tax credit is claimed under this
section is not a qualified equity investment or that the proceeds of
an investment for which a tax credit is claimed under this section
are used to make qualified low-income community investments other
than in a qualified active low-income community business in this
state, all or a portion of the credit received on account of that
investment shall be paid by the insurance company that received the
credit to the superintendent of insurance. The amount to be recovered
shall be determined by the director of
housing
and
development
services
pursuant
to rules adopted under division (E) of this section. The director
shall certify any amount due under this division to the
superintendent of insurance, and the superintendent shall notify the
treasurer of state of the amount due. Upon notification, the
treasurer shall invoice the insurance company for the amount due. The
amount due is payable not later than thirty days after the date the
treasurer invoices the insurance company. The amount due shall be
considered to be tax due under section 5725.18 of the Revised Code,
and may be collected by assessment without regard to the time
limitations imposed under section 5725.222 of the Revised Code for
the assessment of taxes by the superintendent. All amounts collected
under this division shall be credited as revenue from the tax levied
under section 5725.18 of the Revised Code.
(E)
The tax credits authorized under this section and sections 5726.54,
5729.16, and 5733.58 of the Revised Code shall be administered by the
department
of housing and
development
services agency
.
The director of
housing
and
development
services
,
in consultation with the tax commissioner and the superintendent of
insurance, pursuant to Chapter 119. of the Revised Code, shall adopt
rules for the administration of this section and sections 5726.54,
5729.16, and 5733.58 of the Revised Code. The rules shall provide for
determining the recovery of credits under division (D) of this
section and under sections 5726.54, 5729.16, and 5733.58 of the
Revised Code, including prorating the amount of the credit to be
recovered on any reasonable basis, the manner in which credits may be
allocated among claimants, and the amount of any application or other
fees to be charged in connection with a recovery.
(F)
The director of
housing
and
development
services
is
authorized to charge reasonable application and other fees in
connection with the administration of tax credits authorized by this
section and sections 5726.54, 5729.16, and 5733.58 of the Revised
Code. Any such fees collected shall be credited to the tax incentives
operating fund created in section 122.174 of the Revised Code.
(G)
Tax credits earned or allocated to a pass-through entity, as that
term is defined in section 5733.04 of the Revised Code, under section
5725.33, 5726.54, 5729.16, or 5733.58 of the Revised Code may be
allocated to persons having a direct or indirect ownership interest
in the pass-through entity for such persons' direct use in accordance
with the provisions of any mutual agreement between such persons.
Sec.
5726.54.
(A)
Any term used in this section has the same meaning as in section
5725.33 of the Revised Code.
(B)
A taxpayer may claim a nonrefundable credit against the tax imposed
by this chapter for each person included in the annual report of the
taxpayer that holds a qualified equity investment on a credit
allowance date occurring in the calendar year immediately preceding
the tax year for which the tax is due. The credit shall be computed
in the same manner prescribed for the computation of credits allowed
under section 5725.33 of the Revised Code.
By
claiming a tax credit under this section, a taxpayer waives its
rights under section 5726.20 of the Revised Code with respect to the
time limitation for the assessment of taxes as it relates to credits
claimed under this section that later become subject to recapture
under division (D) of this section.
A
taxpayer may claim against the tax imposed by this chapter any unused
portion of the credits authorized under sections 5725.33 and 5733.58
of the Revised Code, but only to the extent of the remaining carry
forward period authorized by those sections.
The
credit shall be claimed in the order prescribed by section 5726.98 of
the Revised Code. If the amount of the credit exceeds the amount of
tax otherwise due after deducting all other credits preceding the
credit in the order prescribed in section 5726.98 of the Revised
Code, the excess may be carried forward for not more than four
ensuing tax years.
(C)
The total amount of qualified equity investments on the basis of
which credits may be claimed under this section and sections 5725.33,
5729.16, and 5733.58 of the Revised Code is subject to the limitation
of division (C) of section 5725.33 of the Revised Code.
(D)
If any amount of a federal tax credit allowed for a qualified equity
investment for which a credit was received under this section is
recaptured under section 45D of the Internal Revenue Code, or if the
director of
housing
and
development
services
determines
that an investment for which a tax credit is claimed under this
section is not a qualified equity investment or that the proceeds of
an investment for which a tax credit is claimed under this section
are used to make qualified low-income community investments other
than in a qualified active low-income community business in this
state, all or a portion of the credit received on account of that
investment shall be paid by the taxpayer that received the credit to
the tax commissioner. The amount to be recovered shall be determined
by the director pursuant to rules adopted under section 5725.33 of
the Revised Code. The director shall certify any amount due under
this division to the tax commissioner, and the commissioner shall
notify the taxpayer of the amount due. The amount due is payable not
later than thirty days after the day the commissioner issues the
notice. The amount due shall be considered to be tax due under
section 5726.02 of the Revised Code, and may be collected by
assessment without regard to the limitations imposed under section
5726.20 of the Revised Code for the assessment of taxes by the
commissioner. All amounts collected under this division shall be
credited as revenue from the tax levied under section 5726.02 of the
Revised Code.
Sec.
5726.55.
(A)
Any term used in this section has the same meaning as in section
122.85 of the Revised Code.
(B)
A taxpayer may claim a refundable credit against the tax imposed
under this chapter for each person included in the annual report of
the taxpayer that is a certificate owner of a tax credit certificate
issued under section 122.85 of the Revised Code. The credit shall be
claimed for the taxable year in which the certificate is issued by
the director of
housing
and
development
services
.
The credit amount equals the amount stated in the certificate. The
credit shall be claimed in the order required under section 5726.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5726.02 of the Revised Code after deducting all
other credits preceding the credit in the order prescribed in section
5726.98 of the Revised Code, the excess shall be refunded to the
taxpayer.
(C)
Nothing in this section shall allow a taxpayer to claim more than one
credit per tax credit-eligible production.
Sec.
5726.59.
(A)
Any term used in this section has the same meaning as in section
122.852 of the Revised Code.
(B)
A taxpayer may claim a refundable credit against the tax imposed
under this chapter for each person included in the annual report of
the taxpayer that is a certificate owner of a tax credit certificate
issued under section 122.852 of the Revised Code. The credit shall be
claimed for the taxable year in which the certificate is issued by
the director of
housing
and
development.
The credit amount equals the amount stated on the certificate or the
portion of that amount owned by the certificate owner. The credit
shall be claimed in the order required under section 5726.98 of the
Revised Code. If the credit amount exceeds the tax otherwise due
under section 5726.02 of the Revised Code after deducting all other
credits preceding the credit in the order prescribed in section
5726.98 of the Revised Code, the excess shall be refunded to the
taxpayer.
Sec.
5727.75.
(A)
For purposes of this section:
(1)
"Qualified energy project" means an energy project
certified by the director of
housing
and
development
pursuant to this section.
(2)
"Energy project" means a project to provide electric power
through the construction, installation, and use of an energy
facility.
(3)
"Alternative energy zone" means a county declared as such
by the board of county commissioners under division (E)(1)(b) or (c)
of this section.
(4)
"Full-time equivalent employee" means the total number of
employee-hours for which compensation was paid to individuals
employed at a qualified energy project for services performed at the
project during the calendar year divided by two thousand eighty
hours. For the purpose of this calculation, "performed at the
project" includes only hours worked at the qualified energy
project and devoted to site preparation or protection, construction
and installation, and the unloading and distribution of materials at
the project site, but does not include hours worked by
superintendents, owners, manufacturers' representatives, persons
employed in a bona fide executive, management, supervisory, or
administrative capacity, or persons whose sole employment on the
project is transporting materials or persons to the project site.
(5)
"Solar energy project" means an energy project composed of
an energy facility using solar panels to generate electricity.
(6)
"Internet identifier of record" has the same meaning as in
section 9.312 of the Revised Code.
(7)
"Applicable year" means the later of the following:
(a)
The tax year in which the secretary of the treasury of the United
States, or the secretary's delegate, determines, in accordance with
section 45Y of the Internal Revenue Code, that the annual greenhouse
gas emissions from the production of electricity in the United States
are equal to or less than twenty-five per cent of the annual
greenhouse gas emissions from the production of electricity in the
United States for calendar year 2022;
(b)
Tax year 2029.
(8)
"Internal Revenue Code" means the Internal Revenue Code as
of
the effective date of this amendment
October 3, 2023
.
(B)(1)
Tangible personal property of a qualified energy project using
renewable energy resources is exempt from taxation for tax years 2011
through the applicable year if all of the following conditions are
satisfied:
(a)
On or before the last day of the tax year preceding the applicable
year, the owner or a lessee pursuant to a sale and leaseback
transaction of the project submits an application to the power siting
board for a certificate under section 4906.20 of the Revised Code, or
if that section does not apply, submits an application for any
approval, consent, permit, or certificate or satisfies any condition
required by a public agency or political subdivision of this state
for the construction or initial operation of an energy project.
(b)
Construction or installation of the energy facility begins on or
after January 1, 2009, and before the first day of the applicable
year. For the purposes of this division, construction begins on the
earlier of the date of application for a certificate or other
approval or permit described in division (B)(1)(a) of this section,
or the date the contract for the construction or installation of the
energy facility is entered into.
(c)
For a qualified energy project with a nameplate capacity of twenty
megawatts or greater, a board of county commissioners of a county in
which property of the project is located has adopted a resolution
under division (E)(1)(b) or (c) of this section to approve the
application submitted under division (E) of this section to exempt
the property located in that county from taxation. A board's adoption
of a resolution rejecting an application or its failure to adopt a
resolution approving the application does not affect the tax-exempt
status of the qualified energy project's property that is located in
another county.
(2)
If tangible personal property of a qualified energy project using
renewable energy resources was exempt from taxation under this
section beginning in any of tax years 2011 through the applicable
year, and the certification under division (E)(2) of this section has
not been revoked, the tangible personal property of the qualified
energy project is exempt from taxation for the tax year following the
applicable year and all ensuing tax years if the property was placed
into service before the first day of the tax year following the
applicable year, as certified in the construction progress report
required under division (F)(2) of this section. Tangible personal
property that has not been placed into service before that date is
taxable property subject to taxation. An energy project for which
certification has been revoked is ineligible for further exemption
under this section. Revocation does not affect the tax-exempt status
of the project's tangible personal property for the tax year in which
revocation occurs or any prior tax year.
(C)
Tangible personal property of a qualified energy project using clean
coal technology, advanced nuclear technology, or cogeneration
technology is exempt from taxation for the first tax year that the
property would be listed for taxation and all subsequent years if all
of the following circumstances are met:
(1)
The property was placed into service before January 1, 2021. Tangible
personal property that has not been placed into service before that
date is taxable property subject to taxation.
(2)
For such a qualified energy project with a nameplate capacity of
twenty megawatts or greater, a board of county commissioners of a
county in which property of the qualified energy project is located
has adopted a resolution under division (E)(1)(b) or (c) of this
section to approve the application submitted under division (E) of
this section to exempt the property located in that county from
taxation. A board's adoption of a resolution rejecting the
application or its failure to adopt a resolution approving the
application does not affect the tax-exempt status of the qualified
energy project's property that is located in another county.
(3)
The certification for the qualified energy project issued under
division (E)(2) of this section has not been revoked. An energy
project for which certification has been revoked is ineligible for
exemption under this section. Revocation does not affect the
tax-exempt status of the project's tangible personal property for the
tax year in which revocation occurs or any prior tax year.
(D)
Except as otherwise provided in this section, real property of a
qualified energy project is exempt from taxation for any tax year for
which the tangible personal property of the qualified energy project
is exempted under this section.
(E)(1)(a)
A person may apply to the director of
housing
and
development
for certification of an energy project as a qualified energy project
on or before the following dates:
(i)
The last day of the tax year preceding the applicable year, for an
energy project using renewable energy resources;
(ii)
December 31, 2017, for an energy project using clean coal technology,
advanced nuclear technology, or cogeneration technology.
(b)
The director shall forward a copy of each application for
certification of an energy project with a nameplate capacity of
twenty megawatts or greater to the board of county commissioners of
each county in which the project is located and to each taxing unit
with territory located in each of the affected counties. Any board
that receives from the director a copy of an application submitted
under this division shall adopt a resolution approving or rejecting
the application unless it has adopted a resolution under division
(E)(1)(c) of this section. A resolution adopted under division
(E)(1)(b) or (c) of this section may require an annual service
payment to be made in addition to the service payment required under
division (G) of this section. The sum of the service payment required
in the resolution and the service payment required under division (G)
of this section shall not exceed nine thousand dollars per megawatt
of nameplate capacity located in the county. The resolution shall
specify the time and manner in which the payments required by the
resolution shall be paid to the county treasurer. The county
treasurer shall deposit the payment to the credit of the county's
general fund to be used for any purpose for which money credited to
that fund may be used.
The
board shall send copies of the resolution to the owner of the
facility and the director by certified mail or, if the board has
record of an internet identifier of record associated with the owner
or director, by ordinary mail and by that internet identifier of
record. The board shall send such notice within thirty days after
receipt of the application, or a longer period of time if authorized
by the director.
(c)
A board of county commissioners may adopt a resolution declaring the
county to be an alternative energy zone and declaring all
applications submitted to the director of
housing
and
development
under this division after the adoption of the resolution, and prior
to its repeal, to be approved by the board.
All
tangible personal property and real property of an energy project
with a nameplate capacity of twenty megawatts or greater is taxable
if it is located in a county in which the board of county
commissioners adopted a resolution rejecting the application
submitted under this division or failed to adopt a resolution
approving the application under division (E)(1)(b) or (c) of this
section.
(2)
The director shall certify an energy project if all of the following
circumstances exist:
(a)
The application was timely submitted.
(b)
For an energy project with a nameplate capacity of twenty megawatts
or greater, a board of county commissioners of at least one county in
which the project is located has adopted a resolution approving the
application under division (E)(1)(b) or (c) of this section.
(c)
No portion of the project's facility was used to supply electricity
before December 31, 2009.
(d)
For construction or installation of a qualified energy project
described in division (B)(1)(b) of this section, that the project is
subject to wage requirements described in section 45(b)(7)(A) of the
Internal Revenue Code and apprenticeship requirements described in
section 45(b)(8)(A)(i) of the Internal Revenue Code, provided both of
the following apply:
(i)
The person applies for such certificate after
the effective date of this amendment
October 3, 2023
.
(ii)
A board of commissioners of at least one county in which the project
is located is required to adopt a resolution approving the
application under division (E)(1)(b) or (c) of this section.
(3)
The director shall deny a certification application if the director
determines the person has failed to comply with any requirement under
this section. The director may revoke a certification if the director
determines the person, or subsequent owner or lessee pursuant to a
sale and leaseback transaction of the qualified energy project, has
failed to comply with any requirement under this section. Upon
certification or revocation, the director shall notify the person,
owner, or lessee, the tax commissioner, and the county auditor of a
county in which the project is located of the certification or
revocation. Notice shall be provided in a manner convenient to the
director.
(F)
The owner or a lessee pursuant to a sale and leaseback transaction of
a qualified energy project shall do each of the following:
(1)
Comply with all applicable regulations;
(2)
File with the director of
housing
and
development
a certified construction progress report before the first day of
March of each year during the energy facility's construction or
installation indicating the percentage of the project completed, and
the project's nameplate capacity, as of the preceding thirty-first
day of December. Unless otherwise instructed by the director of
housing
and
development,
the owner or lessee of an energy project shall file a report with the
director on or before the first day of March each year after
completion of the energy facility's construction or installation
indicating the project's nameplate capacity as of the preceding
thirty-first day of December. Not later than sixty days after June
17, 2010, the owner or lessee of an energy project, the construction
of which was completed before June 17, 2010, shall file a certificate
indicating the project's nameplate capacity.
(3)
File with the director of
housing
and
development,
in a manner prescribed by the director, a report of the total number
of full-time equivalent employees, and the total number of full-time
equivalent employees domiciled in Ohio, who are employed in the
construction or installation of the energy facility;
(4)
For energy projects with a nameplate capacity of twenty megawatts or
greater, repair all roads, bridges, and culverts affected by
construction as reasonably required to restore them to their
preconstruction condition, as determined by the county engineer in
consultation with the local jurisdiction responsible for the roads,
bridges, and culverts. In the event that the county engineer deems
any road, bridge, or culvert to be inadequate to support the
construction or decommissioning of the energy facility, the road,
bridge, or culvert shall be rebuilt or reinforced to the
specifications established by the county engineer prior to the
construction or decommissioning of the facility. The owner or lessee
of the facility shall post a bond in an amount established by the
county engineer and to be held by the board of county commissioners
to ensure funding for repairs of roads, bridges, and culverts
affected during the construction. The bond shall be released by the
board not later than one year after the date the repairs are
completed. The energy facility owner or lessee pursuant to a sale and
leaseback transaction shall post a bond, as may be required by the
Ohio power siting board in the certificate authorizing commencement
of construction issued pursuant to section 4906.10 of the Revised
Code, to ensure funding for repairs to roads, bridges, and culverts
resulting from decommissioning of the facility. The energy facility
owner or lessee and the county engineer may enter into an agreement
regarding specific transportation plans, reinforcements,
modifications, use and repair of roads, financial security to be
provided, and any other relevant issue.
(5)
Provide or facilitate training for fire and emergency responders for
response to emergency situations related to the energy project and,
for energy projects with a nameplate capacity of twenty megawatts or
greater, at the person's expense, equip the fire and emergency
responders with proper equipment as reasonably required to enable
them to respond to such emergency situations;
(6)(a)
Except as otherwise provided in this division, for projects for which
certification as a qualified energy project was applied for, under
division (E) of this section, before
the effective date of this amendment
October 3, 2023
,
maintain a ratio of Ohio-domiciled full-time equivalent employees
employed in the construction or installation of the energy project to
total full-time equivalent employees employed in the construction or
installation of the energy project of not less than eighty per cent
in the case of a solar energy project, and not less than fifty per
cent in the case of any other energy project. A person applying for
such a qualified energy project may certify to the director of
housing
and
development
that the project will be voluntarily subject to the wage requirements
described in section 45(b)(7)(A) of the Internal Revenue Code and
apprenticeship requirements described in section 45(b)(8)(A)(i) of
the Internal Revenue Code as authorized in division (F)(6)(b) of this
section. Upon receipt of that certification, the project shall comply
with division (F)(6)(b) of this section rather than division
(F)(6)(a) of this section.
(b)
For projects for which certification as a qualified energy project
was applied for, under division (E) of this section, on or after
the effective date of this amendment
October 3, 2023
,
maintain a ratio of Ohio-domiciled full-time equivalent employees
employed in the construction or installation of the energy project to
total full-time equivalent employees employed in the construction or
installation of the energy project of not less than seventy per cent
in the case of a solar energy project, and not less than fifty per
cent in the case of any other energy project.
(c)
For purposes of divisions (F)(6)(a) and (b) of this section, in the
case of an energy project for which certification from the power
siting board is required under section 4906.20 of the Revised Code,
the number of full-time equivalent employees employed in the
construction or installation of the energy project equals the number
actually employed or the number projected to be employed in the
certificate application, if such projection is required under
regulations adopted pursuant to section 4906.03 of the Revised Code,
whichever is greater. For all other energy projects, the number of
full-time equivalent employees employed in the construction or
installation of the energy project equals the number actually
employed or the number projected to be employed by the director of
housing
and
development,
whichever is greater. To estimate the number of employees to be
employed in the construction or installation of an energy project,
the director shall use a generally accepted job-estimating model in
use for renewable energy projects, including but not limited to the
job and economic development impact model. The director may adjust an
estimate produced by a model to account for variables not accounted
for by the model.
(7)
For energy projects with a nameplate capacity in excess of twenty
megawatts, establish a relationship with any of the following to
educate and train individuals for careers in the wind or solar energy
industry:
(a)
A member of the university system of Ohio as defined in section
3345.011 of the Revised Code;
(b)
A person offering an apprenticeship program registered with the
employment and training administration within the United States
department of labor or with the apprenticeship council created by
section 4139.02 of the Revised Code;
(c)
A career-technical center, joint vocational school district,
comprehensive career-technical center, or compact career-technical
center;
(d)
A training center operated by a labor organization, or with a
training center operated by a for-profit or nonprofit organization.
The
relationship may include endowments, cooperative programs,
internships, apprenticeships, research and development projects, and
curriculum development.
(8)
Offer to sell power or renewable energy credits from the energy
project to electric distribution utilities or electric service
companies subject to renewable energy resource requirements under
section 4928.64 of the Revised Code that have issued requests for
proposal for such power or renewable energy credits. If no electric
distribution utility or electric service company issues a request for
proposal on or before December 31, 2010, or accepts an offer for
power or renewable energy credits within forty-five days after the
offer is submitted, power or renewable energy credits from the energy
project may be sold to other persons. Division (F)(8) of this section
does not apply if:
(a)
The owner or lessee is a rural electric company or a municipal power
agency as defined in section 3734.058 of the Revised Code.
(b)
The owner or lessee is a person that, before completion of the energy
project, contracted for the sale of power or renewable energy credits
with a rural electric company or a municipal power agency.
(c)
The owner or lessee contracts for the sale of power or renewable
energy credits from the energy project before June 17, 2010.
(9)
Make annual service payments as required by division (G) of this
section and as may be required in a resolution adopted by a board of
county commissioners under division (E) of this section.
(G)
The owner or a lessee pursuant to a sale and leaseback transaction of
a qualified energy project shall make annual service payments in lieu
of taxes to the county treasurer on or before the final dates for
payments of taxes on public utility personal property on the real and
public utility personal property tax list for each tax year for which
property of the energy project is exempt from taxation under this
section. The county treasurer shall allocate the payment on the basis
of the project's physical location. Upon receipt of a payment, or if
timely payment has not been received, the county treasurer shall
certify such receipt or non-receipt to the director of
housing
and
development
and tax commissioner in a form determined by the director and
commissioner, respectively. Each payment shall be in the following
amount:
(1)
In the case of a solar energy project, seven thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first-day of December of the preceding tax year;
(2)
In the case of any other energy project using renewable energy
resources, the following:
(a)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of not less than
seventy-five per cent, six thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of December
of the preceding tax year;
(b)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than
seventy-five per cent but not less than sixty per cent, seven
thousand dollars per megawatt of nameplate capacity located in the
county as of the thirty-first day of December of the preceding tax
year;
(c)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than sixty
per cent but not less than fifty per cent, eight thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first day of December of the preceding tax year.
(3)
In the case of an energy project using clean coal technology,
advanced nuclear technology, or cogeneration technology, the
following:
(a)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of not less than
seventy-five per cent, six thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of December
of the preceding tax year;
(b)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than
seventy-five per cent but not less than sixty per cent, seven
thousand dollars per megawatt of nameplate capacity located in the
county as of the thirty-first day of December of the preceding tax
year;
(c)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than sixty
per cent but not less than fifty per cent, eight thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first day of December of the preceding tax year.
(H)
The director of
housing
and
development
in consultation with the tax commissioner shall adopt rules pursuant
to Chapter 119. of the Revised Code to implement and enforce this
section.
Sec.
5729.032.
Upon
the issuance of a tax credit certificate by the director of
housing
and
development,
a refundable credit granted by the tax credit authority under section
122.17 of the Revised Code may be claimed against the tax imposed by
section 5729.03 of the Revised Code. The credit shall be claimed in
the calendar year specified in the certificate issued by the director
of
housing
and
development.
Sec.
5729.16.
(A)
Terms used in this section have the same meaning as in section
5725.33 of the Revised Code.
(B)
There is hereby allowed a nonrefundable credit against the tax
imposed by section 5729.03 or 5729.06 of the Revised Code for a
foreign insurance company holding a qualified equity investment on
the credit allowance date occurring in the calendar year for which
the tax is due. The credit shall be computed in the same manner
prescribed for the computation of credits allowed under section
5725.33 of the Revised Code.
The
credit shall be claimed in the order prescribed by section 5729.98 of
the Revised Code. If the amount of the credit exceeds the amount of
tax otherwise due after deducting all other credits in that order,
the excess may be carried forward and applied to the tax due for not
more than four ensuing years.
By
claiming a tax credit under this section, an insurance company waives
its rights under section 5729.102 of the Revised Code with respect to
the time limitation for the assessment of taxes as it relates to
credits claimed that later become subject to recapture under division
(D) of this section.
(C)
The total amount of qualified equity investments on the basis of
which credits may be claimed under this section, section 5725.33, and
section 5733.58 of the Revised Code is subject to the limitation of
division (C) of section 5725.33 of the Revised Code.
(D)
If any amount of a federal tax credit allowed for a qualified equity
investment for which a credit was received under this section is
recaptured under section 45D of the Internal Revenue Code, or if the
director of
housing
and
development
services
determines
that an investment for which a tax credit is claimed under this
section is not a qualified equity investment or that the proceeds of
an investment for which a tax credit is claimed under this section
are used to make qualified low-income community investments other
than in a qualified active low-income community business in this
state, all or a portion of the credit received on account of that
investment shall be paid by the insurance company that received the
credit to the superintendent of insurance. The amount to be recovered
shall be determined by the director of
housing
and
development
services
pursuant
to rules adopted under section 5725.33 of the Revised Code. The
director shall certify any amount due under this division to the
superintendent of insurance, and the superintendent shall notify the
treasurer of state of the amount due. Upon notification, the
treasurer shall invoice the insurance company for the amount due. The
amount due is payable not later than thirty days after the date the
treasurer invoices the insurance company. The amount due shall be
considered to be tax due under section 5729.03 or 5729.06 of the
Revised Code, as applicable, and may be collected by assessment
without regard to the time limitations imposed under section 5729.102
of the Revised Code for the assessment of taxes by the
superintendent. All amounts collected under this division shall be
credited as revenue from the tax levied under section 5729.03 of the
Revised Code.
Sec.
5733.33.
(A)
As used in this section:
(1)
"Manufacturing machinery and equipment" means engines and
machinery, and tools and implements, of every kind used, or designed
to be used, in refining and manufacturing. "Manufacturing
machinery and equipment" does not include property acquired
after December 31, 1999, that is used:
(a)
For the transmission and distribution of electricity;
(b)
For the generation of electricity, if fifty per cent or more of the
electricity that the property generates is consumed, during the
one-hundred-twenty-month period commencing with the date the property
is placed in service, by persons that are not related members to the
person who generates the electricity.
(2)
"New manufacturing machinery and equipment" means
manufacturing machinery and equipment, the original use in this state
of which commences with the taxpayer or with a partnership of which
the taxpayer is a partner. "New manufacturing machinery and
equipment" does not include property acquired after December 31,
1999, that is used:
(a)
For the transmission and distribution of electricity;
(b)
For the generation of electricity, if fifty per cent or more of the
electricity that the property generates is consumed, during the
one-hundred-twenty-month period commencing with the date the property
is placed in service, by persons that are not related members to the
person who generates the electricity.
(3)(a)
"Purchase" has the same meaning as in section 179(d)(2) of
the Internal Revenue Code.
(b)
For purposes of this section, any property that is not manufactured
or assembled primarily by the taxpayer is considered purchased at the
time the agreement to acquire the property becomes binding. Any
property that is manufactured or assembled primarily by the taxpayer
is considered purchased at the time the taxpayer places the property
in service in the county for which the taxpayer will calculate the
county excess amount.
(c)
Notwithstanding section 179(d) of the Internal Revenue Code, a
taxpayer's direct or indirect acquisition of new manufacturing
machinery and equipment is not purchased on or after July 1, 1995, if
the taxpayer, or a person whose relationship to the taxpayer is
described in subparagraphs (A), (B), or (C) of section 179(d)(2) of
the Internal Revenue Code, had directly or indirectly entered into a
binding agreement to acquire the property at any time prior to July
1, 1995.
(4)
"Qualifying period" means the period that begins July 1,
1995, and ends June 30, 2005.
(5)
"County average new manufacturing machinery and equipment
investment" means either of the following:
(a)
The average annual cost of new manufacturing machinery and equipment
purchased for use in the county during baseline years, in the case of
a taxpayer that was in existence for more than one year during
baseline years.
(b)
Zero, in the case of a taxpayer that was not in existence for more
than one year during baseline years.
(6)
"Partnership" includes a limited liability company formed
under
former
Chapter
1705.
or
of
the Revised Code as that chapter existed prior to February 11, 2022,
Chapter
1706.
of the Revised Code
,
or under the laws of any other state, provided that the company is
not classified for federal income tax purposes as an association
taxable as a corporation.
(7)
"Partner" includes a member of a limited liability company
formed under
former
Chapter
1705.
or
of
the Revised Code as that chapter existed prior to February 11, 2022,
Chapter
1706.
of the Revised Code
,
or under the laws of any other state, provided that the company is
not classified for federal income tax purposes as an association
taxable as a corporation.
(8)
"Distressed area" means either a municipal corporation that
has a population of at least fifty thousand or a county that meets
two of the following criteria of economic distress, or a municipal
corporation the majority of the population of which is situated in
such a county:
(a)
Its average rate of unemployment, during the most recent five-year
period for which data are available, is equal to at least one hundred
twenty-five per cent of the average rate of unemployment for the
United States for the same period;
(b)
It has a per capita income equal to or below eighty per cent of the
median county per capita income of the United States as determined by
the most recently available figures from the United States census
bureau;
(c)(i)
In the case of a municipal corporation, at least twenty per cent of
the residents have a total income for the most recent census year
that is below the official poverty line;
(ii)
In the case of a county, in intercensal years, the county has a ratio
of transfer payment income to total county income equal to or greater
than twenty-five per cent.
(9)
"Eligible area" means a distressed area, a labor surplus
area, an inner city area, or a situational distress area.
(10)
"Inner city area" means, in a municipal corporation that
has a population of at least one hundred thousand and does not meet
the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within its
boundaries that are comprised of the most recent census block tracts
that individually have at least twenty per cent of their population
at or below the state poverty level or other census block tracts
contiguous to such census block tracts.
(11)
"Labor surplus area" means an area designated as a labor
surplus area by the United States department of labor.
(12)
"Official poverty line" has the same meaning as in division
(A) of section 3923.51 of the Revised Code.
(13)
"Situational distress area" means a county or a municipal
corporation that has experienced or is experiencing a closing or
downsizing of a major employer, that will adversely affect the
county's or municipal corporation's economy. In order to be
designated as a situational distress area for a period not to exceed
thirty-six months, the county or municipal corporation may petition
the director of
housing
and
development.
The petition shall include written documentation that demonstrates
all of the following adverse effects on the local economy:
(a)
The number of jobs lost by the closing or downsizing;
(b)
The impact that the job loss has on the county's or municipal
corporation's unemployment rate as measured by the state director of
job and family services;
(c)
The annual payroll associated with the job loss;
(d)
The amount of state and local taxes associated with the job loss;
(e)
The impact that the closing or downsizing has on the suppliers
located in the county or municipal corporation.
(14)
"Cost" has the same meaning and limitation as in section
179(d)(3) of the Internal Revenue Code.
(15)
"Baseline years" means:
(a)
Calendar years 1992, 1993, and 1994, with regard to a credit claimed
for the purchase during calendar year 1995, 1996, 1997, or 1998 of
new manufacturing machinery and equipment;
(b)
Calendar years 1993, 1994, and 1995, with regard to a credit claimed
for the purchase during calendar year 1999 of new manufacturing
machinery and equipment;
(c)
Calendar years 1994, 1995, and 1996, with regard to a credit claimed
for the purchase during calendar year 2000 of new manufacturing
machinery and equipment;
(d)
Calendar years 1995, 1996, and 1997, with regard to a credit claimed
for the purchase during calendar year 2001 of new manufacturing
machinery and equipment;
(e)
Calendar years 1996, 1997, and 1998, with regard to a credit claimed
for the purchase during calendar year 2002 of new manufacturing
machinery and equipment;
(f)
Calendar years 1997, 1998, and 1999, with regard to a credit claimed
for the purchase during calendar year 2003 of new manufacturing
machinery and equipment;
(g)
Calendar years 1998, 1999, and 2000, with regard to a credit claimed
for the purchase during calendar year 2004 of new manufacturing
machinery and equipment;
(h)
Calendar years 1999, 2000, and 2001, with regard to a credit claimed
for the purchase on or after January 1, 2005, and on or before June
30, 2005, of new manufacturing machinery and equipment.
(16)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(B)(1)
Subject to division (I) of this section, a nonrefundable credit is
allowed against the tax imposed by section 5733.06 of the Revised
Code for a taxpayer that purchases new manufacturing machinery and
equipment during the qualifying period, provided that the new
manufacturing machinery and equipment are installed in this state no
later than June 30, 2006. No credit shall be allowed under this
section for taxable years ending on or after July 1, 2005. The
elimination of the credit for those taxable years includes the
elimination of any remaining one-sevenths of credit amounts for which
a portion was allowed for prior taxable years and the elimination of
any credit carry-forward, but the purchases on which the credits were
based remain subject to grants under section 122.173 of the Revised
Code for those remaining one-seventh amounts or carry-forward
amounts.
(2)(a)
Except as otherwise provided in division (B)(2)(b) of this section, a
credit may be claimed under this section in excess of one million
dollars only if the cost of all manufacturing machinery and equipment
owned in this state by the taxpayer claiming the credit on the last
day of the calendar year exceeds the cost of all manufacturing
machinery and equipment owned in this state by the taxpayer on the
first day of that calendar year.
As
used in division (B)(2)(a) of this section, "calendar year"
means the calendar year in which the machinery and equipment for
which the credit is claimed was purchased.
(b)
Division (B)(2)(a) of this section does not apply if the taxpayer
claiming the credit applies for and is issued a waiver of the
requirement of that division. A taxpayer may apply to the director of
housing
and
development
for such a waiver in the manner prescribed by the director, and the
director may issue such a waiver if the director determines that
granting the credit is necessary to increase or retain employees in
this state, and that the credit has not caused relocation of
manufacturing machinery and equipment among counties within this
state for the primary purpose of qualifying for the credit.
(C)(1)
Except as otherwise provided in division (C)(2) and division (I) of
this section, the credit amount is equal to seven and one-half per
cent of the excess of the cost of the new manufacturing machinery and
equipment purchased during the calendar year for use in a county over
the county average new manufacturing machinery and equipment
investment for that county.
(2)
Subject to division (I) of this section, as used in division (C)(2)
of this section "county excess" means the taxpayer's excess
cost for a county as computed under division (C)(1) of this section.
Subject
to division (I) of this section, a taxpayer with a county excess,
whose purchases included purchases for use in any eligible area in
the county, the credit amount is equal to thirteen and one-half per
cent of the cost of the new manufacturing machinery and equipment
purchased during the calendar year for use in the eligible areas in
the county, provided that the cost subject to the thirteen and
one-half per cent rate shall not exceed the county excess. If the
county excess is greater than the cost of the new manufacturing
machinery and equipment purchased during the calendar year for use in
eligible areas in the county, the credit amount also shall include an
amount equal to seven and one-half per cent of the amount of the
difference.
(3)
If a taxpayer is allowed a credit for purchases of new manufacturing
machinery and equipment in more than one county or eligible area, it
shall aggregate the amount of those credits each year.
(4)
The taxpayer shall claim one-seventh of the credit amount for the tax
year immediately following the calendar year in which the new
manufacturing machinery and equipment is purchased for use in the
county by the taxpayer or partnership. One-seventh of the taxpayer
credit amount is allowed for each of the six ensuing tax years.
Except for carried-forward amounts, the taxpayer is not allowed any
credit amount remaining if the new manufacturing machinery and
equipment is sold by the taxpayer or partnership or is transferred by
the taxpayer or partnership out of the county before the end of the
seven-year period unless, at the time of the sale or transfer, the
new manufacturing machinery and equipment has been fully depreciated
for federal income tax purposes.
(5)(a)
A taxpayer that acquires manufacturing machinery and equipment as a
result of a merger with the taxpayer with whom commenced the original
use in this state of the manufacturing machinery and equipment, or
with a taxpayer that was a partner in a partnership with whom
commenced the original use in this state of the manufacturing
machinery and equipment, is entitled to any remaining or
carried-forward credit amounts to which the taxpayer was entitled.
(b)
A taxpayer that enters into an agreement under division (C)(3) of
section 5709.62 of the Revised Code and that acquires manufacturing
machinery or equipment as a result of purchasing a large
manufacturing facility, as defined in section 5709.61 of the Revised
Code, from another taxpayer with whom commenced the original use in
this state of the manufacturing machinery or equipment, and that
operates the large manufacturing facility so purchased, is entitled
to any remaining or carried-forward credit amounts to which the other
taxpayer who sold the facility would have been entitled under this
section had the other taxpayer not sold the manufacturing facility or
equipment.
(c)
New manufacturing machinery and equipment is not considered sold if a
pass-through entity transfers to another pass-through entity
substantially all of its assets as part of a plan of reorganization
under which substantially all gain and loss is not recognized by the
pass-through entity that is transferring the new manufacturing
machinery and equipment to the transferee and under which the
transferee's basis in the new manufacturing machinery and equipment
is determined, in whole or in part, by reference to the basis of the
pass-through entity which transferred the new manufacturing machinery
and equipment to the transferee.
(d)
Division (C)(5) of this section shall apply only if the acquiring
taxpayer or transferee does not sell the new manufacturing machinery
and equipment or transfer the new manufacturing machinery and
equipment out of the county before the end of the seven-year period
to which division (C)(4) of this section refers.
(e)
Division (C)(5)(b) of this section applies only to the extent that
the taxpayer that sold the manufacturing machinery or equipment, upon
request, timely provides to the tax commissioner any information that
the tax commissioner considers to be necessary to ascertain any
remaining or carried-forward amounts to which the taxpayer that sold
the facility would have been entitled under this section had the
taxpayer not sold the manufacturing machinery or equipment. Nothing
in division (C)(5)(b) or (e) of this section shall be construed to
allow a taxpayer to claim any credit amount with respect to the
acquired manufacturing machinery or equipment that is greater than
the amount that would have been available to the other taxpayer that
sold the manufacturing machinery or equipment had the other taxpayer
not sold the manufacturing machinery or equipment.
(D)
The taxpayer shall claim the credit in the order required under
section 5733.98 of the Revised Code. Each year, any credit amount in
excess of the tax due under section 5733.06 of the Revised Code after
allowing for any other credits that precede the credit under this
section in that order may be carried forward for three tax years.
(E)
A taxpayer purchasing new manufacturing machinery and equipment and
intending to claim the credit shall file, with the department of
housing
and
development,
a notice of intent to claim the credit on a form prescribed by the
department of
housing
and
development.
The department of
housing
and
development
shall inform the tax commissioner of the notice of intent to claim
the credit. No credit may be claimed under this section for any
manufacturing machinery and equipment with respect to which a notice
was not filed by the date of a timely filed return, including
extensions, for the taxable year that includes September 30, 2005.
(F)
The director of
housing
and
development
shall annually certify, by the first day of January of each year
during the qualifying period, the eligible areas for the tax credit
for the calendar year that includes that first day of January. The
director shall send a copy of the certification to the tax
commissioner.
(G)
New manufacturing machinery and equipment for which a taxpayer claims
the credit under section 5733.31 or 5733.311 of the Revised Code
shall not be considered new manufacturing machinery and equipment for
purposes of the credit under this section.
(H)(1)
Notwithstanding sections 5733.11 and 5747.13 of the Revised Code, but
subject to division (H)(2) of this section, the tax commissioner may
issue an assessment against a person with respect to a credit claimed
under this section for new manufacturing machinery and equipment
described in division (A)(1)(b) or (2)(b) of this section, if the
machinery or equipment subsequently does not qualify for the credit.
(2)
Division (H)(1) of this section shall not apply after the
twenty-fourth month following the last day of the period described in
divisions (A)(1)(b) and (2)(b) of this section.
(I)
Notwithstanding any other provision of this section to the contrary,
in the case of a qualifying controlled group, the credit available
under this section to a taxpayer or taxpayers in the qualifying
controlled group shall be computed as if all corporations in the
group were a single corporation. The credit shall be allocated to
such a taxpayer or taxpayers in the group in any amount elected for
the taxable year by the group. Such election shall be revocable and
amendable during the period described in division (B) of section
5733.12 of the Revised Code.
This
division applies to all purchases of new manufacturing machinery and
equipment made on or after January 1, 2001, and to all baseline years
used to compute any credit attributable to such purchases; provided,
that this division may be applied solely at the election of the
qualifying controlled group with respect to all purchases of new
manufacturing machinery and equipment made before that date, and to
all baseline years used to compute any credit attributable to such
purchases. The qualifying controlled group at any time may elect to
apply this division to purchases made prior to January 1, 2001,
subject to the following:
(1)
The election is irrevocable;
(2)
The election need not accompany a timely filed report, but the
election may accompany a subsequently filed but timely application
for refund, a subsequently filed but timely amended report, or a
subsequently filed but timely petition for reassessment.
Sec.
5733.34.
(A)
As used in this section:
(1)
"Partnership" includes a limited liability company if the
limited liability company is not treated as a corporation for
purposes of this chapter and is not classified as an association
taxable as a corporation for federal income tax purposes.
(2)
"Partner" includes a member of a limited liability company
if the limited liability company is not treated as a corporation for
purposes of this chapter and is not classified as an association
taxable as a corporation for federal income tax purposes.
(B)(1)
A nonrefundable credit is allowed against the tax imposed by section
5733.06 of the Revised Code for a taxpayer that has entered into an
agreement with the director of
housing
and
development
under section 122.16 of the Revised Code, or for a taxpayer that is a
partner in a partnership that has entered into such an agreement. If
a taxpayer is a partner in such a partnership, the taxpayer shall be
allowed its distributive share of the credit available through the
partnership.
(2)
If a taxpayer enters into more than one agreement under section
122.16 of the Revised Code, the taxpayer may aggregate the amount of
those credits each year.
(3)
A taxpayer entitled to the credit allowed under this section shall
claim one-fifth of the credit amount for the tax year immediately
following the calendar year in which the agreement is entered into,
and one-fifth of the credit amount for each of the four succeeding
tax years.
(4)
A taxpayer shall claim the credit in the order provided under section
5733.98 of the Revised Code. The amount of the credit that a taxpayer
may claim each year shall be the amount indicated on the certificate
issued by the director of
housing
and
development
under section 122.16 of the Revised Code, or the taxpayer's
distributive share of that amount if the taxpayer is entitled to the
credit through a partnership. The taxpayer shall submit the
certificate with the taxpayer's annual report filed under section
5733.02 of the Revised Code. Each tax year, any credit amount in
excess of the tax due for that year under section 5733.06 of the
Revised Code, after allowing for all other credits preceding the
credit in that order, may be carried forward for no more than three
tax years.
(5)
A taxpayer shall not claim any credit amount remaining, including any
amounts carried forward from prior tax years, for any tax year
following the calendar year in which any of the following events
occur, except as otherwise provided under division (B)(6) of this
section:
(a)
The taxpayer or partnership through which the taxpayer is entitled to
the credit enters into a compliance schedule agreement pursuant to
division (B)(3) of section 3746.12 of the Revised Code;
(b)
The taxpayer or partnership through which the taxpayer is entitled to
the credit has its covenant not to sue revoked pursuant to Chapter
3746. of the Revised Code and rules adopted under that chapter;
(c)
The covenant not to sue issued to the taxpayer or partnership through
which the taxpayer is entitled to the credit is void pursuant to
Chapter 3746. of the Revised Code;
(d)
The director of
housing
and
development
has determined that the taxpayer, or a partnership through which the
taxpayer is entitled to the credit, has permitted the eligible site
to be used in such a manner as to cause the relocation of employment
positions from elsewhere in this state in violation of the commitment
required under division (D) of section 122.16 of the Revised Code.
If
a taxpayer claims credits through more than one partnership, division
(B)(5) of this section prohibits that taxpayer from claiming a credit
through any of those partnerships that has entered into a compliance
schedule agreement, has had its covenant not to sue revoked or
voided, or has violated the commitment required in division (D) of
section 122.16 of the Revised Code. Division (B)(5) of this section
does not prohibit such a taxpayer from claiming a credit through a
partnership that has not entered into a compliance schedule
agreement, has not had its covenant not to sue revoked or voided, or
has not violated the commitment required in division (D) of section
122.16 of the Revised Code.
(6)
If a taxpayer has been prohibited from claiming the credit or a
portion of the credit by reason of division (B)(5)(a) of this
section, and the taxpayer, or a partnership in which the taxpayer is
a partner, subsequently has returned the property to compliance with
applicable standards pursuant to the compliance schedule agreement,
the taxpayer may claim the credit for the tax year following the
calendar year in which the director of environmental protection has
determined that the taxpayer or partnership has returned the property
to compliance with applicable standards and for each subsequent tax
year for which the taxpayer is otherwise allowed to claim the credit
under division (B)(3) of this section.
Sec.
5733.352.
(A)
As used in this section:
(1)
"Borrower" means any person that receives a loan from the
director of
housing
and
development
under section 166.21 of the Revised Code, regardless of whether the
borrower is subject to the taxes imposed by sections 5733.06,
5733.065, and 5733.066 of the Revised Code.
(2)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(3)
"Qualified research and development loan payments" has the
same meaning as in division (D) of section 166.21 of the Revised
Code.
(B)
Beginning with tax year 2004, and in the case of a corporation
subject to division (G)(2) of section 5733.01 of the Revised Code
ending with tax year 2008, a nonrefundable credit is allowed against
the taxes imposed by sections 5733.06, 5733.065, and 5733.066 of the
Revised Code equal to a borrower's qualified research and development
loan payments made during the calendar year immediately preceding the
tax year for which the credit is claimed. The amount of the credit
for a tax year shall not exceed one hundred fifty thousand dollars.
No taxpayer is entitled to claim a credit under this section unless
it has obtained a certificate issued by the director of
housing
and
development
under division (D) of section 166.21 of the Revised Code and submits
a copy of the certificate with its report for the taxable year.
Failure to submit a copy of the certificate with the report does not
invalidate a claim for a credit if the taxpayer submits a copy of the
certificate within sixty days after the tax commissioner requests it.
The credit shall be claimed in the order required under section
5733.98 of the Revised Code. The credit, to the extent it exceeds the
taxpayer's tax liability for the tax year after allowance for any
other credits that precede the credit under this section in that
order, shall be carried forward to the next succeeding tax year or
years until fully used. A corporation subject to division (G)(2) of
section 5733.01 of the Revised Code may carry forward any credit not
fully utilized by tax year 2008 and apply it against the tax levied
by Chapter 5751. of the Revised Code to the extent allowed under
section 5751.52 of the Revised Code.
(C)
A borrower entitled to a credit under this section may assign the
credit, or a portion thereof, to any of the following:
(1)
A related member of that borrower;
(2)
The owner or lessee of the eligible research and development project;
(3)
A related member of the owner or lessee of the eligible research and
development project.
A
borrower making an assignment under this division shall provide
written notice of the assignment to the tax commissioner and the
director of
housing
and
development,
in such form as the tax commissioner prescribes, before the credit
that was assigned is used. The assignor may not claim the credit to
the extent it was assigned to an assignee. The assignee may claim the
credit only to the extent the assignor has not claimed it.
(D)
If any taxpayer is a partner in a partnership or a member in a
limited liability company treated as a partnership for federal income
tax purposes, the taxpayer shall be allowed the taxpayer's
distributive or proportionate share of the credit available through
the partnership or limited liability company.
(E)
The aggregate credit against the taxes imposed by sections 5733.06,
5733.065, 5733.066, and 5747.02 of the Revised Code that may be
claimed under this section and section 5747.331 of the Revised Code
by a borrower as a result of qualified research and development loan
payments attributable during a calendar year to any one loan shall
not exceed one hundred fifty thousand dollars.
Sec.
5733.58.
(A)
Terms used in this section have the same meaning as in section
5725.33 of the Revised Code.
(B)
There is hereby allowed a nonrefundable credit against the tax
imposed by section 5733.06 of the Revised Code for a financial
institution holding a qualified equity investment on the credit
allowance date occurring in the calendar year immediately preceding
the tax year for which the tax is due. The credit shall be computed
in the same manner prescribed for the computation of credits allowed
under section 5725.33 of the Revised Code.
By
claiming a tax credit under this section, a financial institution
waives its rights under section 5733.11 of the Revised Code with
respect to the time limitation for the assessment of taxes as it
relates to credits claimed that later become subject to recapture
under division (D) of this section.
The
credit shall be claimed in the order prescribed by section 5733.98 of
the Revised Code. If the amount of the credit exceeds the amount of
tax otherwise due after deducting all other credits in that order,
the excess may be carried forward and applied to the tax due for not
more than four ensuing tax years.
(C)
The total amount of qualified equity investments on the basis of
which credits may be claimed under this section and sections 5725.33
and 5729.16 of the Revised Code is subject to the limitation of
division (C) of section 5725.33 of the Revised Code.
(D)
If any amount of a federal tax credit allowed for a qualified equity
investment for which a credit was received under this section is
recaptured under section 45D of the Internal Revenue Code, or if the
director of
housing
and
development
services
determines
that an investment for which a tax credit is claimed under this
section is not a qualified equity investment or that the proceeds of
an investment for which a tax credit is claimed under this section
are used to make qualified low-income community investments other
than in a qualified active low-income community business in this
state, all or a portion of the credit received on account of that
investment shall be paid by the financial institution that received
the credit to the tax commissioner. The amount to be recovered shall
be determined by the director of
housing
and
development
services
pursuant
to rules adopted under section 5725.33 of the Revised Code. The
director shall certify any amount due under this division to the tax
commissioner, and the commissioner shall notify the financial
institution of the amount due. The amount due is payable not later
than thirty days after the day the commissioner issues the notice.
The amount due shall be considered to be tax due under section
5733.06 of the Revised Code, and may be collected by assessment
without regard to the limitations imposed under section 5733.11 of
the Revised Code for the assessment of taxes by the commissioner. All
amounts collected under this division shall be credited as revenue
from the tax levied under section 5733.06 of the Revised Code.
Sec.
5733.59.
(A)
Any term used in this section has the same meaning as in section
122.85 of the Revised Code.
(B)
There is allowed a credit against the tax imposed by section 5733.06
of the Revised Code for any corporation that is the certificate owner
of a tax credit certificate issued under section 122.85 of the
Revised Code. The credit shall be claimed for the taxable year in
which the certificate is issued by the director of
housing
and
development.
The credit amount equals the amount stated in the certificate. The
credit shall be claimed in the order required under section 5733.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5733.06 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded.
(C)
If, pursuant to division (G) of section 5733.01 of the Revised Code,
the corporation is not required to pay tax under this chapter, the
corporation may file an annual report under section 5733.02 of the
Revised Code and claim the credit authorized by this section. Nothing
in this section allows a corporation to claim more than one credit
per tax credit-eligible production.
Sec.
5747.01.
Except
as otherwise expressly provided or clearly appearing from the
context, any term used in this chapter that is not otherwise defined
in this section has the same meaning as when used in a comparable
context in the laws of the United States relating to federal income
taxes or if not used in a comparable context in those laws, has the
same meaning as in section 5733.40 of the Revised Code. Any reference
in this chapter to the Internal Revenue Code includes other laws of
the United States relating to federal income taxes.
As
used in this chapter:
(A)
"Adjusted gross income" or "Ohio adjusted gross
income" means federal adjusted gross income, as defined and used
in the Internal Revenue Code, adjusted as provided in this section:
(1)
Add interest or dividends on obligations or securities of any state
or of any political subdivision or authority of any state, other than
this state and its subdivisions and authorities.
(2)
Add interest or dividends on obligations of any authority,
commission, instrumentality, territory, or possession of the United
States to the extent that the interest or dividends are exempt from
federal income taxes but not from state income taxes.
(3)
Deduct interest or dividends on obligations of the United States and
its territories and possessions or of any authority, commission, or
instrumentality of the United States to the extent that the interest
or dividends are included in federal adjusted gross income but exempt
from state income taxes under the laws of the United States.
(4)
Deduct disability and survivor's benefits to the extent included in
federal adjusted gross income.
(5)
Deduct the following, to the extent not otherwise deducted or
excluded in computing federal or Ohio adjusted gross income:
(a)
Benefits under Title II of the Social Security Act and tier 1
railroad retirement;
(b)
Railroad retirement benefits, other than tier 1 railroad retirement
benefits, to the extent such amounts are exempt from state taxation
under federal law.
(6)
Deduct the amount of wages and salaries, if any, not otherwise
allowable as a deduction but that would have been allowable as a
deduction in computing federal adjusted gross income for the taxable
year, had the work opportunity tax credit allowed and determined
under sections 38, 51, and 52 of the Internal Revenue Code not been
in effect.
(7)
Deduct any interest or interest equivalent on public obligations and
purchase obligations to the extent that the interest or interest
equivalent is included in federal adjusted gross income.
(8)
Add any loss or deduct any gain resulting from the sale, exchange, or
other disposition of public obligations to the extent that the loss
has been deducted or the gain has been included in computing federal
adjusted gross income.
(9)
Deduct or add amounts, as provided under section 5747.70 of the
Revised Code, related to contributions made to or tuition units
purchased under a qualified tuition program established pursuant to
section 529 of the Internal Revenue Code.
(10)(a)
Deduct, to the extent not otherwise allowable as a deduction or
exclusion in computing federal or Ohio adjusted gross income for the
taxable year, the amount the taxpayer paid during the taxable year
for medical care insurance and qualified long-term care insurance for
the taxpayer, the taxpayer's spouse, and dependents. No deduction for
medical care insurance under division (A)(10)(a) of this section
shall be allowed either to any taxpayer who is eligible to
participate in any subsidized health plan maintained by any employer
of the taxpayer or of the taxpayer's spouse, or to any taxpayer who
is entitled to, or on application would be entitled to, benefits
under part A of Title XVIII of the "Social Security Act,"
49 Stat. 620 (1935), 42 U.S.C. 301, as amended. For the purposes of
division (A)(10)(a) of this section, "subsidized health plan"
means a health plan for which the employer pays any portion of the
plan's cost. The deduction allowed under division (A)(10)(a) of this
section shall be the net of any related premium refunds, related
premium reimbursements, or related insurance premium dividends
received during the taxable year.
(b)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income during the taxable year, the
amount the taxpayer paid during the taxable year, not compensated for
by any insurance or otherwise, for medical care of the taxpayer, the
taxpayer's spouse, and dependents, to the extent the expenses exceed
seven and one-half per cent of the taxpayer's federal adjusted gross
income.
(c)
For purposes of division (A)(10) of this section, "medical care"
has the meaning given in section 213 of the Internal Revenue Code,
subject to the special rules, limitations, and exclusions set forth
therein, and "qualified long-term care" has the same
meaning given in section 7702B(c) of the Internal Revenue Code.
Solely for purposes of division (A)(10)(a) of this section,
"dependent" includes a person who otherwise would be a
"qualifying relative" and thus a "dependent"
under section 152 of the Internal Revenue Code but for the fact that
the person fails to meet the income and support limitations under
section 152(d)(1)(B) and (C) of the Internal Revenue Code.
(11)(a)
Deduct any amount included in federal adjusted gross income solely
because the amount represents a reimbursement or refund of expenses
that in any year the taxpayer had deducted as an itemized deduction
pursuant to section 63 of the Internal Revenue Code and applicable
United States department of the treasury regulations. The deduction
otherwise allowed under division (A)(11)(a) of this section shall be
reduced to the extent the reimbursement is attributable to an amount
the taxpayer deducted under this section in any taxable year.
(b)
Add any amount not otherwise included in Ohio adjusted gross income
for any taxable year to the extent that the amount is attributable to
the recovery during the taxable year of any amount deducted or
excluded in computing federal or Ohio adjusted gross income in any
taxable year.
(12)
Deduct any portion of the deduction described in section 1341(a)(2)
of the Internal Revenue Code, for repaying previously reported income
received under a claim of right, that meets both of the following
requirements:
(a)
It is allowable for repayment of an item that was included in the
taxpayer's adjusted gross income for a prior taxable year and did not
qualify for a credit under division (A) or (B) of section 5747.05 of
the Revised Code for that year;
(b)
It does not otherwise reduce the taxpayer's adjusted gross income for
the current or any other taxable year.
(13)
Deduct an amount equal to the deposits made to, and net investment
earnings of, a medical savings account during the taxable year, in
accordance with section 3924.66 of the Revised Code. The deduction
allowed by division (A)(13) of this section does not apply to medical
savings account deposits and earnings otherwise deducted or excluded
for the current or any other taxable year from the taxpayer's federal
adjusted gross income.
(14)(a)
Add an amount equal to the funds withdrawn from a medical savings
account during the taxable year, and the net investment earnings on
those funds, when the funds withdrawn were used for any purpose other
than to reimburse an account holder for, or to pay, eligible medical
expenses, in accordance with section 3924.66 of the Revised Code;
(b)
Add the amounts distributed from a medical savings account under
division (A)(2) of section 3924.68 of the Revised Code during the
taxable year.
(15)
Add any amount claimed as a credit under section 5747.059 of the
Revised Code to the extent that such amount satisfies either of the
following:
(a)
The amount was deducted or excluded from the computation of the
taxpayer's federal adjusted gross income as required to be reported
for the taxpayer's taxable year under the Internal Revenue Code;
(b)
The amount resulted in a reduction of the taxpayer's federal adjusted
gross income as required to be reported for any of the taxpayer's
taxable years under the Internal Revenue Code.
(16)
Deduct the amount contributed by the taxpayer to an individual
development account program established by a county department of job
and family services pursuant to sections 329.11 to 329.14 of the
Revised Code for the purpose of matching funds deposited by program
participants. On request of the tax commissioner, the taxpayer shall
provide any information that, in the tax commissioner's opinion, is
necessary to establish the amount deducted under division (A)(16) of
this section.
(17)(a)(i)
Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section,
add five-sixths of the amount of depreciation expense allowed by
subsection (k) of section 168 of the Internal Revenue Code, including
the taxpayer's proportionate or distributive share of the amount of
depreciation expense allowed by that subsection to a pass-through
entity in which the taxpayer has a direct or indirect ownership
interest.
(ii)
Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section,
add five-sixths of the amount of qualifying section 179 depreciation
expense, including the taxpayer's proportionate or distributive share
of the amount of qualifying section 179 depreciation expense allowed
to any pass-through entity in which the taxpayer has a direct or
indirect ownership interest.
(iii)
Subject to division (A)(17)(a)(v) of this section, for taxable years
beginning in 2012 or thereafter, if the increase in income taxes
withheld by the taxpayer is equal to or greater than ten per cent of
income taxes withheld by the taxpayer during the taxpayer's
immediately preceding taxable year, "two-thirds" shall be
substituted for "five-sixths" for the purpose of divisions
(A)(17)(a)(i) and (ii) of this section.
(iv)
Subject to division (A)(17)(a)(v) of this section, for taxable years
beginning in 2012 or thereafter, a taxpayer is not required to add an
amount under division (A)(17) of this section if the increase in
income taxes withheld by the taxpayer and by any pass-through entity
in which the taxpayer has a direct or indirect ownership interest is
equal to or greater than the sum of (I) the amount of qualifying
section 179 depreciation expense and (II) the amount of depreciation
expense allowed to the taxpayer by subsection (k) of section 168 of
the Internal Revenue Code, and including the taxpayer's proportionate
or distributive shares of such amounts allowed to any such
pass-through entities.
(v)
If a taxpayer directly or indirectly incurs a net operating loss for
the taxable year for federal income tax purposes, to the extent such
loss resulted from depreciation expense allowed by subsection (k) of
section 168 of the Internal Revenue Code and by qualifying section
179 depreciation expense, "the entire" shall be substituted
for "five-sixths of the" for the purpose of divisions
(A)(17)(a)(i) and (ii) of this section.
The
tax commissioner, under procedures established by the commissioner,
may waive the add-backs related to a pass-through entity if the
taxpayer owns, directly or indirectly, less than five per cent of the
pass-through entity.
(b)
Nothing in division (A)(17) of this section shall be construed to
adjust or modify the adjusted basis of any asset.
(c)
To the extent the add-back required under division (A)(17)(a) of this
section is attributable to property generating nonbusiness income or
loss allocated under section 5747.20 of the Revised Code, the
add-back shall be sitused to the same location as the nonbusiness
income or loss generated by the property for the purpose of
determining the credit under division (A) of section 5747.05 of the
Revised Code. Otherwise, the add-back shall be apportioned, subject
to one or more of the four alternative methods of apportionment
enumerated in section 5747.21 of the Revised Code.
(d)
For the purposes of division (A)(17)(a)(v) of this section, net
operating loss carryback and carryforward shall not include the
allowance of any net operating loss deduction carryback or
carryforward to the taxable year to the extent such loss resulted
from depreciation allowed by section 168(k) of the Internal Revenue
Code and by the qualifying section 179 depreciation expense amount.
(e)
For the purposes of divisions (A)(17) and (18) of this section:
(i)
"Income taxes withheld" means the total amount withheld and
remitted under sections 5747.06 and 5747.07 of the Revised Code by an
employer during the employer's taxable year.
(ii)
"Increase in income taxes withheld" means the amount by
which the amount of income taxes withheld by an employer during the
employer's current taxable year exceeds the amount of income taxes
withheld by that employer during the employer's immediately preceding
taxable year.
(iii)
"Qualifying section 179 depreciation expense" means the
difference between (I) the amount of depreciation expense directly or
indirectly allowed to a taxpayer under section 179 of the Internal
Revised Code, and (II) the amount of depreciation expense directly or
indirectly allowed to the taxpayer under section 179 of the Internal
Revenue Code as that section existed on December 31, 2002.
(18)(a)
If the taxpayer was required to add an amount under division
(A)(17)(a) of this section for a taxable year, deduct one of the
following:
(i)
One-fifth of the amount so added for each of the five succeeding
taxable years if the amount so added was five-sixths of qualifying
section 179 depreciation expense or depreciation expense allowed by
subsection (k) of section 168 of the Internal Revenue Code;
(ii)
One-half of the amount so added for each of the two succeeding
taxable years if the amount so added was two-thirds of such
depreciation expense;
(iii)
One-sixth of the amount so added for each of the six succeeding
taxable years if the entire amount of such depreciation expense was
so added.
(b)
If the amount deducted under division (A)(18)(a) of this section is
attributable to an add-back allocated under division (A)(17)(c) of
this section, the amount deducted shall be sitused to the same
location. Otherwise, the add-back shall be apportioned using the
apportionment factors for the taxable year in which the deduction is
taken, subject to one or more of the four alternative methods of
apportionment enumerated in section 5747.21 of the Revised Code.
(c)
No deduction is available under division (A)(18)(a) of this section
with regard to any depreciation allowed by section 168(k) of the
Internal Revenue Code and by the qualifying section 179 depreciation
expense amount to the extent that such depreciation results in or
increases a federal net operating loss carryback or carryforward. If
no such deduction is available for a taxable year, the taxpayer may
carry forward the amount not deducted in such taxable year to the
next taxable year and add that amount to any deduction otherwise
available under division (A)(18)(a) of this section for that next
taxable year. The carryforward of amounts not so deducted shall
continue until the entire addition required by division (A)(17)(a) of
this section has been deducted.
(19)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year as reimbursement
for life insurance premiums under section 5919.31 of the Revised
Code.
(20)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year as a death
benefit paid by the adjutant general under section 5919.33 of the
Revised Code.
(21)
Deduct, to the extent included in federal adjusted gross income and
not otherwise allowable as a deduction or exclusion in computing
federal or Ohio adjusted gross income for the taxable year, military
pay and allowances received by the taxpayer during the taxable year
for active duty service in the United States army, air force, navy,
marine corps, or coast guard or reserve components thereof or the
national guard. The deduction may not be claimed for military pay and
allowances received by the taxpayer while the taxpayer is stationed
in this state.
(22)
Deduct, to the extent not otherwise allowable as a deduction or
exclusion in computing federal or Ohio adjusted gross income for the
taxable year and not otherwise compensated for by any other source,
the amount of qualified organ donation expenses incurred by the
taxpayer during the taxable year, not to exceed ten thousand dollars.
A taxpayer may deduct qualified organ donation expenses only once for
all taxable years beginning with taxable years beginning in 2007.
For
the purposes of division (A)(22) of this section:
(a)
"Human organ" means all or any portion of a human liver,
pancreas, kidney, intestine, or lung, and any portion of human bone
marrow.
(b)
"Qualified organ donation expenses" means travel expenses,
lodging expenses, and wages and salary forgone by a taxpayer in
connection with the taxpayer's donation, while living, of one or more
of the taxpayer's human organs to another human being.
(23)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received by the taxpayer as retired personnel pay for service in the
uniformed services or reserve components thereof, or the national
guard, or received by the surviving spouse or former spouse of such a
taxpayer under the survivor benefit plan on account of such a
taxpayer's death. If the taxpayer receives income on account of
retirement paid under the federal civil service retirement system or
federal employees retirement system, or under any successor
retirement program enacted by the congress of the United States that
is established and maintained for retired employees of the United
States government, and such retirement income is based, in whole or
in part, on credit for the taxpayer's uniformed service, the
deduction allowed under this division shall include only that portion
of such retirement income that is attributable to the taxpayer's
uniformed service, to the extent that portion of such retirement
income is otherwise included in federal adjusted gross income and is
not otherwise deducted under this section. Any amount deducted under
division (A)(23) of this section is not included in a taxpayer's
adjusted gross income for the purposes of section 5747.055 of the
Revised Code. No amount may be deducted under division (A)(23) of
this section on the basis of which a credit was claimed under section
5747.055 of the Revised Code.
(24)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year from the
military injury relief fund created in section 5902.05 of the Revised
Code.
(25)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received as a veterans bonus during the taxable
year from the Ohio department of veterans services as authorized by
Section 2r of Article VIII, Ohio Constitution.
(26)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, any
income derived from a transfer agreement or from the enterprise
transferred under that agreement under section 4313.02 of the Revised
Code.
(27)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, Ohio
college opportunity or federal Pell grant amounts received by the
taxpayer or the taxpayer's spouse or dependent pursuant to section
3333.122 of the Revised Code or 20 U.S.C. 1070a, et seq., and used to
pay room or board furnished by the educational institution for which
the grant was awarded at the institution's facilities, including meal
plans administered by the institution. For the purposes of this
division, receipt of a grant includes the distribution of a grant
directly to an educational institution and the crediting of the grant
to the enrollee's account with the institution.
(28)
Deduct from the portion of an individual's federal adjusted gross
income that is business income, to the extent not otherwise deducted
or excluded in computing federal adjusted gross income for the
taxable year, one hundred twenty-five thousand dollars for each
spouse if spouses file separate returns under section 5747.08 of the
Revised Code or two hundred fifty thousand dollars for all other
individuals.
(29)
Deduct, as provided under section 5747.78 of the Revised Code,
contributions to ABLE savings accounts made in accordance with
sections 113.50 to 113.56 of the Revised Code.
(30)(a)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income during the taxable year, all of
the following:
(i)
Compensation paid to a qualifying employee described in division
(A)(14)(a) of section 5703.94 of the Revised Code to the extent such
compensation is for disaster work conducted in this state during a
disaster response period pursuant to a qualifying solicitation
received by the employee's employer;
(ii)
Compensation paid to a qualifying employee described in division
(A)(14)(b) of section 5703.94 of the Revised Code to the extent such
compensation is for disaster work conducted in this state by the
employee during the disaster response period on critical
infrastructure owned or used by the employee's employer;
(iii)
Income received by an out-of-state disaster business for disaster
work conducted in this state during a disaster response period, or,
if the out-of-state disaster business is a pass-through entity, a
taxpayer's distributive share of the pass-through entity's income
from the business conducting disaster work in this state during a
disaster response period, if, in either case, the disaster work is
conducted pursuant to a qualifying solicitation received by the
business.
(b)
All terms used in division (A)(30) of this section have the same
meanings as in section 5703.94 of the Revised Code.
(31)
For a taxpayer who is a qualifying Ohio educator, deduct, to the
extent not otherwise deducted or excluded in computing federal or
Ohio adjusted gross income for the taxable year, the lesser of two
hundred fifty dollars or the amount of expenses described in
subsections (a)(2)(D)(i) and (ii) of section 62 of the Internal
Revenue Code paid or incurred by the taxpayer during the taxpayer's
taxable year in excess of the amount the taxpayer is authorized to
deduct for that taxable year under subsection (a)(2)(D) of that
section.
(32)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received by the taxpayer as a disability severance payment, computed
under 10 U.S.C. 1212, following discharge or release under honorable
conditions from the armed forces of the United States, as defined in
section 5907.01 of the Revised Code.
(33)
Deduct, to the extent not otherwise deducted or excluded in computing
federal adjusted gross income or Ohio adjusted gross income, amounts
not subject to tax due to an agreement entered into under division
(A)(2) of section 5747.05 of the Revised Code.
(34)
Deduct amounts as provided under section 5747.79 of the Revised Code
related to the taxpayer's qualifying capital gains and deductible
payroll.
To
the extent a qualifying capital gain described under division (A)(34)
of this section is business income, the taxpayer shall deduct those
gains under this division before deducting any such gains under
division (A)(28) of this section.
(35)(a)
For taxable years beginning in or after 2026, deduct, to the extent
not otherwise deducted or excluded in computing federal or Ohio
adjusted gross income for the taxable year:
(i)
One hundred per cent of the capital gain received by the taxpayer in
the taxable year from a qualifying interest in an Ohio venture
capital operating company attributable to the company's investments
in Ohio businesses during the period for which the company was an
Ohio venture operating company; and
(ii)
Fifty per cent of the capital gain received by the taxpayer in the
taxable year from a qualifying interest in an Ohio venture capital
operating company attributable to the company's investments in all
other businesses during the period for which the company was an Ohio
venture operating company.
(b)
Add amounts previously deducted by the taxpayer under division
(A)(35)(a) of this section if the director of
housing
and
development
certifies to the tax commissioner that the requirements for the
deduction were not met.
(c)
All terms used in division (A)(35) of this section have the same
meanings as in section 122.851 of the Revised Code.
(d)
To the extent a capital gain described in division (A)(35)(a) of this
section is business income, the taxpayer shall apply that division
before applying division (A)(28) of this section.
(36)
Add, to the extent not otherwise included in computing federal or
Ohio adjusted gross income for any taxable year, the taxpayer's
proportionate share of the amount of the tax levied under section
5747.38 of the Revised Code and paid by an electing pass-through
entity for the taxable year.
Notwithstanding
any provision of the Revised Code to the contrary, the portion of the
addition required by division (A)(36) of this section related to the
apportioned business income of the pass-through entity shall be
considered business income under division (B) of this section. Such
addition is eligible for the deduction in division (A)(28) of this
section, subject to the applicable dollar limitations, and the tax
rate prescribed by division (A)(4)(a) of section 5747.02 of the
Revised Code. The taxpayer shall provide, upon request of the tax
commissioner, any documentation necessary to verify the portion of
the addition that is business income under this division.
(37)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
delivered to a qualifying institution pursuant to section 3333.128 of
the Revised Code for the benefit of the taxpayer or the taxpayer's
spouse or dependent.
(38)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received under the Ohio adoption grant program pursuant to section
5101.191 of the Revised Code.
(39)
Deduct, to the extent included in federal adjusted gross income,
income attributable to amounts provided to a taxpayer for any of the
purposes for which an exclusion would have been authorized under
section 139 of the Internal Revenue Code if the train derailment near
the city of East Palestine on February 3, 2023, had been a qualified
disaster pursuant to that section, or to compensate for lost business
resulting from that derailment, if such amounts are provided by any
of the following:
(a)
A federal, state, or local government agency;
(b)
A railroad company, as that term is defined in section 5727.01 of the
Revised Code;
(c)
Any subsidiary, insurer, or agent of a railroad company or any
related person.
Notwithstanding
any provision to the contrary, the derailment is not required to meet
the definition of a "qualified disaster" pursuant to
section 139 of the Internal Revenue Code to qualify for the deduction
under this section.
(40)
Deduct, to the extent included in federal adjusted gross income,
income attributable to loan repayments on behalf of the taxpayer
under the rural practice incentive program under section 3333.135 of
the Revised Code.
(41)
Add any income taxes deducted in computing federal or Ohio adjusted
gross income to the extent the income taxes were derived from income
subject to a tax levied in another state or the District of Columbia
when such tax was enacted for purposes of complying with internal
revenue service notice 2020-75.
Notwithstanding
any provision of the Revised Code to the contrary, the portion of the
addition required by division (A)(41) of this section related to the
apportioned business income of the pass-through entity shall be
considered business income under division (B) of this section. Such
addition is eligible for the deduction in division (A)(28) of this
section, subject to the applicable dollar limitations, and the tax
rate prescribed by division (A)(4)(a) of section 5747.02 of the
Revised Code. The taxpayer shall provide, upon request of the tax
commissioner, any documentation necessary to verify the portion of
the addition that is business income under this division.
(42)
Deduct amounts contributed to a homeownership savings account and
calculated pursuant to divisions (B) and (C) of section 5747.85 of
the Revised Code.
(43)
If the taxpayer is the account owner, add the amount of funds
withdrawn from a homeownership savings account not used for eligible
expenses, regardless of who deposited those funds. As used in
division (A)(43) of this section, "homeownership savings
account," "account owner," and "eligible
expenses" have the same meanings as in section 5747.85 of the
Revised Code.
(B)
"Business income" means income, including gain or loss,
arising from transactions, activities, and sources in the regular
course of a trade or business and includes income, gain, or loss from
real property, tangible property, and intangible property if the
acquisition, rental, management, and disposition of the property
constitute integral parts of the regular course of a trade or
business operation. "Business income" includes income,
including gain or loss, from a partial or complete liquidation of a
business, including, but not limited to, gain or loss from the sale
or other disposition of goodwill or the sale of an equity or
ownership interest in a business.
As
used in this division, the "sale of an equity or ownership
interest in a business" means sales to which either or both of
the following apply:
(1)
The sale is treated for federal income tax purposes as the sale of
assets.
(2)
The seller materially participated, as described in 26 C.F.R.
1.469-5T, in the activities of the business during the taxable year
in which the sale occurs or during any of the five preceding taxable
years.
(C)
"Nonbusiness income" means all income other than business
income and may include, but is not limited to, compensation, rents
and royalties from real or tangible personal property, capital gains,
interest, dividends and distributions, patent or copyright royalties,
or lottery winnings, prizes, and awards.
(D)
"Compensation" means any form of remuneration paid to an
employee for personal services.
(E)
"Fiduciary" means a guardian, trustee, executor,
administrator, receiver, conservator, or any other person acting in
any fiduciary capacity for any individual, trust, or estate.
(F)
"Fiscal year" means an accounting period of twelve months
ending on the last day of any month other than December.
(G)
"Individual" means any natural person.
(H)
"Internal Revenue Code" means the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.
(I)
"Resident" means any of the following:
(1)
An individual who is domiciled in this state, subject to section
5747.24 of the Revised Code;
(2)
The estate of a decedent who at the time of death was domiciled in
this state. The domicile tests of section 5747.24 of the Revised Code
are not controlling for purposes of division (I)(2) of this section.
(3)
A trust that, in whole or part, resides in this state. If only part
of a trust resides in this state, the trust is a resident only with
respect to that part.
For
the purposes of division (I)(3) of this section:
(a)
A trust resides in this state for the trust's current taxable year to
the extent, as described in division (I)(3)(d) of this section, that
the trust consists directly or indirectly, in whole or in part, of
assets, net of any related liabilities, that were transferred, or
caused to be transferred, directly or indirectly, to the trust by any
of the following:
(i)
A person, a court, or a governmental entity or instrumentality on
account of the death of a decedent, but only if the trust is
described in division (I)(3)(e)(i) or (ii) of this section;
(ii)
A person who was domiciled in this state for the purposes of this
chapter when the person directly or indirectly transferred assets to
an irrevocable trust, but only if at least one of the trust's
qualifying beneficiaries is domiciled in this state for the purposes
of this chapter during all or some portion of the trust's current
taxable year;
(iii)
A person who was domiciled in this state for the purposes of this
chapter when the trust document or instrument or part of the trust
document or instrument became irrevocable, but only if at least one
of the trust's qualifying beneficiaries is a resident domiciled in
this state for the purposes of this chapter during all or some
portion of the trust's current taxable year. If a trust document or
instrument became irrevocable upon the death of a person who at the
time of death was domiciled in this state for purposes of this
chapter, that person is a person described in division (I)(3)(a)(iii)
of this section.
(b)
A trust is irrevocable to the extent that the transferor is not
considered to be the owner of the net assets of the trust under
sections 671 to 678 of the Internal Revenue Code.
(c)
With respect to a trust other than a charitable lead trust,
"qualifying beneficiary" has the same meaning as "potential
current beneficiary" as defined in section 1361(e)(2) of the
Internal Revenue Code, and with respect to a charitable lead trust
"qualifying beneficiary" is any current, future, or
contingent beneficiary, but with respect to any trust "qualifying
beneficiary" excludes a person or a governmental entity or
instrumentality to any of which a contribution would qualify for the
charitable deduction under section 170 of the Internal Revenue Code.
(d)
For the purposes of division (I)(3)(a) of this section, the extent to
which a trust consists directly or indirectly, in whole or in part,
of assets, net of any related liabilities, that were transferred
directly or indirectly, in whole or part, to the trust by any of the
sources enumerated in that division shall be ascertained by
multiplying the fair market value of the trust's assets, net of
related liabilities, by the qualifying ratio, which shall be computed
as follows:
(i)
The first time the trust receives assets, the numerator of the
qualifying ratio is the fair market value of those assets at that
time, net of any related liabilities, from sources enumerated in
division (I)(3)(a) of this section. The denominator of the qualifying
ratio is the fair market value of all the trust's assets at that
time, net of any related liabilities.
(ii)
Each subsequent time the trust receives assets, a revised qualifying
ratio shall be computed. The numerator of the revised qualifying
ratio is the sum of (1) the fair market value of the trust's assets
immediately prior to the subsequent transfer, net of any related
liabilities, multiplied by the qualifying ratio last computed without
regard to the subsequent transfer, and (2) the fair market value of
the subsequently transferred assets at the time transferred, net of
any related liabilities, from sources enumerated in division
(I)(3)(a) of this section. The denominator of the revised qualifying
ratio is the fair market value of all the trust's assets immediately
after the subsequent transfer, net of any related liabilities.
(iii)
Whether a transfer to the trust is by or from any of the sources
enumerated in division (I)(3)(a) of this section shall be ascertained
without regard to the domicile of the trust's beneficiaries.
(e)
For the purposes of division (I)(3)(a)(i) of this section:
(i)
A trust is described in division (I)(3)(e)(i) of this section if the
trust is a testamentary trust and the testator of that testamentary
trust was domiciled in this state at the time of the testator's death
for purposes of the taxes levied under Chapter 5731. of the Revised
Code.
(ii)
A trust is described in division (I)(3)(e)(ii) of this section if the
transfer is a qualifying transfer described in any of divisions
(I)(3)(f)(i) to (vi) of this section, the trust is an irrevocable
inter vivos trust, and at least one of the trust's qualifying
beneficiaries is domiciled in this state for purposes of this chapter
during all or some portion of the trust's current taxable year.
(f)
For the purposes of division (I)(3)(e)(ii) of this section, a
"qualifying transfer" is a transfer of assets, net of any
related liabilities, directly or indirectly to a trust, if the
transfer is described in any of the following:
(i)
The transfer is made to a trust, created by the decedent before the
decedent's death and while the decedent was domiciled in this state
for the purposes of this chapter, and, prior to the death of the
decedent, the trust became irrevocable while the decedent was
domiciled in this state for the purposes of this chapter.
(ii)
The transfer is made to a trust to which the decedent, prior to the
decedent's death, had directly or indirectly transferred assets, net
of any related liabilities, while the decedent was domiciled in this
state for the purposes of this chapter, and prior to the death of the
decedent the trust became irrevocable while the decedent was
domiciled in this state for the purposes of this chapter.
(iii)
The transfer is made on account of a contractual relationship
existing directly or indirectly between the transferor and either the
decedent or the estate of the decedent at any time prior to the date
of the decedent's death, and the decedent was domiciled in this state
at the time of death for purposes of the taxes levied under Chapter
5731. of the Revised Code.
(iv)
The transfer is made to a trust on account of a contractual
relationship existing directly or indirectly between the transferor
and another person who at the time of the decedent's death was
domiciled in this state for purposes of this chapter.
(v)
The transfer is made to a trust on account of the will of a testator
who was domiciled in this state at the time of the testator's death
for purposes of the taxes levied under Chapter 5731. of the Revised
Code.
(vi)
The transfer is made to a trust created by or caused to be created by
a court, and the trust was directly or indirectly created in
connection with or as a result of the death of an individual who, for
purposes of the taxes levied under Chapter 5731. of the Revised Code,
was domiciled in this state at the time of the individual's death.
(g)
The tax commissioner may adopt rules to ascertain the part of a trust
residing in this state.
(J)
"Nonresident" means an individual or estate that is not a
resident. An individual who is a resident for only part of a taxable
year is a nonresident for the remainder of that taxable year.
(K)
"Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.
(L)
"Return" means the notifications and reports required to be
filed pursuant to this chapter for the purpose of reporting the tax
due and includes declarations of estimated tax when so required.
(M)
"Taxable year" means the calendar year or the taxpayer's
fiscal year ending during the calendar year, or fractional part
thereof, upon which the adjusted gross income is calculated pursuant
to this chapter.
(N)
"Taxpayer" means any person subject to the tax imposed by
section 5747.02 of the Revised Code or any pass-through entity that
makes the election under division (D) of section 5747.08 of the
Revised Code.
(O)
"Dependents" means one of the following:
(1)
For taxable years beginning on or after January 1, 2018, and before
January 1, 2026, dependents as defined in the Internal Revenue Code;
(2)
For all other taxable years, dependents as defined in the Internal
Revenue Code and as claimed in the taxpayer's federal income tax
return for the taxable year or which the taxpayer would have been
permitted to claim had the taxpayer filed a federal income tax
return.
(P)
"Principal county of employment" means, in the case of a
nonresident, the county within the state in which a taxpayer performs
services for an employer or, if those services are performed in more
than one county, the county in which the major portion of the
services are performed.
(Q)
As used in sections 5747.50 to 5747.55 of the Revised Code:
(1)
"Subdivision" means any county, municipal corporation, park
district, or township.
(2)
"Essential local government purposes" includes all
functions that any subdivision is required by general law to
exercise, including like functions that are exercised under a charter
adopted pursuant to the Ohio Constitution.
(R)
"Overpayment" means any amount already paid that exceeds
the figure determined to be the correct amount of the tax.
(S)
"Taxable income" or "Ohio taxable income" applies
only to estates and trusts, and means federal taxable income, as
defined and used in the Internal Revenue Code, adjusted as follows:
(1)
Add interest or dividends, net of ordinary, necessary, and reasonable
expenses not deducted in computing federal taxable income, on
obligations or securities of any state or of any political
subdivision or authority of any state, other than this state and its
subdivisions and authorities, but only to the extent that such net
amount is not otherwise includible in Ohio taxable income and is
described in either division (S)(1)(a) or (b) of this section:
(a)
The net amount is not attributable to the S portion of an electing
small business trust and has not been distributed to beneficiaries
for the taxable year;
(b)
The net amount is attributable to the S portion of an electing small
business trust for the taxable year.
(2)
Add interest or dividends, net of ordinary, necessary, and reasonable
expenses not deducted in computing federal taxable income, on
obligations of any authority, commission, instrumentality, territory,
or possession of the United States to the extent that the interest or
dividends are exempt from federal income taxes but not from state
income taxes, but only to the extent that such net amount is not
otherwise includible in Ohio taxable income and is described in
either division (S)(1)(a) or (b) of this section;
(3)
Add the amount of personal exemption allowed to the estate pursuant
to section 642(b) of the Internal Revenue Code;
(4)
Deduct interest or dividends, net of related expenses deducted in
computing federal taxable income, on obligations of the United States
and its territories and possessions or of any authority, commission,
or instrumentality of the United States to the extent that the
interest or dividends are exempt from state taxes under the laws of
the United States, but only to the extent that such amount is
included in federal taxable income and is described in either
division (S)(1)(a) or (b) of this section;
(5)
Deduct the amount of wages and salaries, if any, not otherwise
allowable as a deduction but that would have been allowable as a
deduction in computing federal taxable income for the taxable year,
had the work opportunity tax credit allowed under sections 38, 51,
and 52 of the Internal Revenue Code not been in effect, but only to
the extent such amount relates either to income included in federal
taxable income for the taxable year or to income of the S portion of
an electing small business trust for the taxable year;
(6)
Deduct any interest or interest equivalent, net of related expenses
deducted in computing federal taxable income, on public obligations
and purchase obligations, but only to the extent that such net amount
relates either to income included in federal taxable income for the
taxable year or to income of the S portion of an electing small
business trust for the taxable year;
(7)
Add any loss or deduct any gain resulting from sale, exchange, or
other disposition of public obligations to the extent that such loss
has been deducted or such gain has been included in computing either
federal taxable income or income of the S portion of an electing
small business trust for the taxable year;
(8)
Except in the case of the final return of an estate, add any amount
deducted by the taxpayer on both its Ohio estate tax return pursuant
to section 5731.14 of the Revised Code, and on its federal income tax
return in determining federal taxable income;
(9)(a)
Deduct any amount included in federal taxable income solely because
the amount represents a reimbursement or refund of expenses that in a
previous year the decedent had deducted as an itemized deduction
pursuant to section 63 of the Internal Revenue Code and applicable
treasury regulations. The deduction otherwise allowed under division
(S)(9)(a) of this section shall be reduced to the extent the
reimbursement is attributable to an amount the taxpayer or decedent
deducted under this section in any taxable year.
(b)
Add any amount not otherwise included in Ohio taxable income for any
taxable year to the extent that the amount is attributable to the
recovery during the taxable year of any amount deducted or excluded
in computing federal or Ohio taxable income in any taxable year, but
only to the extent such amount has not been distributed to
beneficiaries for the taxable year.
(10)
Deduct any portion of the deduction described in section 1341(a)(2)
of the Internal Revenue Code, for repaying previously reported income
received under a claim of right, that meets both of the following
requirements:
(a)
It is allowable for repayment of an item that was included in the
taxpayer's taxable income or the decedent's adjusted gross income for
a prior taxable year and did not qualify for a credit under division
(A) or (B) of section 5747.05 of the Revised Code for that year.
(b)
It does not otherwise reduce the taxpayer's taxable income or the
decedent's adjusted gross income for the current or any other taxable
year.
(11)
Add any amount claimed as a credit under section 5747.059 of the
Revised Code to the extent that the amount satisfies either of the
following:
(a)
The amount was deducted or excluded from the computation of the
taxpayer's federal taxable income as required to be reported for the
taxpayer's taxable year under the Internal Revenue Code;
(b)
The amount resulted in a reduction in the taxpayer's federal taxable
income as required to be reported for any of the taxpayer's taxable
years under the Internal Revenue Code.
(12)
Deduct any amount, net of related expenses deducted in computing
federal taxable income, that a trust is required to report as farm
income on its federal income tax return, but only if the assets of
the trust include at least ten acres of land satisfying the
definition of "land devoted exclusively to agricultural use"
under section 5713.30 of the Revised Code, regardless of whether the
land is valued for tax purposes as such land under sections 5713.30
to 5713.38 of the Revised Code. If the trust is a pass-through entity
investor, section 5747.231 of the Revised Code applies in
ascertaining if the trust is eligible to claim the deduction provided
by division (S)(12) of this section in connection with the
pass-through entity's farm income.
Except
for farm income attributable to the S portion of an electing small
business trust, the deduction provided by division (S)(12) of this
section is allowed only to the extent that the trust has not
distributed such farm income.
(13)
Add the net amount of income described in section 641(c) of the
Internal Revenue Code to the extent that amount is not included in
federal taxable income.
(14)
Deduct the amount the taxpayer would be required to deduct under
division (A)(18) of this section if the taxpayer's Ohio taxable
income
were
was
computed
in the same manner as an individual's Ohio adjusted gross income is
computed under this section.
(15)
Add, to the extent not otherwise included in computing taxable income
or Ohio taxable income for any taxable year, the taxpayer's
proportionate share of the amount of the tax levied under section
5747.38 of the Revised Code and paid by an electing pass-through
entity for the taxable year.
(16)
Add any income taxes deducted in computing federal taxable income or
Ohio taxable income to the extent the income taxes were derived from
income subject to a tax levied in another state or the District of
Columbia when such tax was enacted for purposes of complying with
internal revenue service notice 2020-75.
(T)
"School district income" and "school district income
tax" have the same meanings as in section 5748.01 of the Revised
Code.
(U)
As used in divisions (A)(7), (A)(8), (S)(6), and (S)(7) of this
section, "public obligations," "purchase obligations,"
and "interest or interest equivalent" have the same
meanings as in section 5709.76 of the Revised Code.
(V)
"Limited liability company" means any limited liability
company formed under former Chapter 1705. of the Revised Code as that
chapter existed prior to February 11, 2022, Chapter 1706. of the
Revised Code, or the laws of any other state.
(W)
"Pass-through entity investor" means any person who, during
any portion of a taxable year of a pass-through entity, is a partner,
member, shareholder, or equity investor in that pass-through entity.
(X)
"Banking day" has the same meaning as in section 1304.01 of
the Revised Code.
(Y)
"Month" means a calendar month.
(Z)
"Quarter" means the first three months, the second three
months, the third three months, or the last three months of the
taxpayer's taxable year.
(AA)(1)
"Modified business income" means the business income
included in a trust's Ohio taxable income after such taxable income
is first reduced by the qualifying trust amount, if any.
(2)
"Qualifying trust amount" of a trust means capital gains
and losses from the sale, exchange, or other disposition of equity or
ownership interests in, or debt obligations of, a qualifying investee
to the extent included in the trust's Ohio taxable income, but only
if the following requirements are satisfied:
(a)
The book value of the qualifying investee's physical assets in this
state and everywhere, as of the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on which
the trust recognizes the gain or loss, is available to the trust.
(b)
The requirements of section 5747.011 of the Revised Code are
satisfied for the trust's taxable year in which the trust recognizes
the gain or loss.
Any
gain or loss that is not a qualifying trust amount is modified
business income, qualifying investment income, or modified
nonbusiness income, as the case may be.
(3)
"Modified nonbusiness income" means a trust's Ohio taxable
income other than modified business income, other than the qualifying
trust amount, and other than qualifying investment income, as defined
in section 5747.012 of the Revised Code, to the extent such
qualifying investment income is not otherwise part of modified
business income.
(4)
"Modified Ohio taxable income" applies only to trusts, and
means the sum of the amounts described in divisions (AA)(4)(a) to (c)
of this section:
(a)
The fraction, calculated under section 5747.013, and applying section
5747.231 of the Revised Code, multiplied by the sum of the following
amounts:
(i)
The trust's modified business income;
(ii)
The trust's qualifying investment income, as defined in section
5747.012 of the Revised Code, but only to the extent the qualifying
investment income does not otherwise constitute modified business
income and does not otherwise constitute a qualifying trust amount.
(b)
The qualifying trust amount multiplied by a fraction, the numerator
of which is the sum of the book value of the qualifying investee's
physical assets in this state on the last day of the qualifying
investee's fiscal or calendar year ending immediately prior to the
day on which the trust recognizes the qualifying trust amount, and
the denominator of which is the sum of the book value of the
qualifying investee's total physical assets everywhere on the last
day of the qualifying investee's fiscal or calendar year ending
immediately prior to the day on which the trust recognizes the
qualifying trust amount. If, for a taxable year, the trust recognizes
a qualifying trust amount with respect to more than one qualifying
investee, the amount described in division (AA)(4)(b) of this section
shall equal the sum of the products so computed for each such
qualifying investee.
(c)(i)
With respect to a trust or portion of a trust that is a resident as
ascertained in accordance with division (I)(3)(d) of this section,
its modified nonbusiness income.
(ii)
With respect to a trust or portion of a trust that is not a resident
as ascertained in accordance with division (I)(3)(d) of this section,
the amount of its modified nonbusiness income satisfying the
descriptions in divisions (B)(2) to (5) of section 5747.20 of the
Revised Code, except as otherwise provided in division (AA)(4)(c)(ii)
of this section. With respect to a trust or portion of a trust that
is not a resident as ascertained in accordance with division
(I)(3)(d) of this section, the trust's portion of modified
nonbusiness income recognized from the sale, exchange, or other
disposition of a debt interest in or equity interest in a section
5747.212 entity, as defined in section 5747.212 of the Revised Code,
without regard to division (A) of that section, shall not be
allocated to this state in accordance with section 5747.20 of the
Revised Code but shall be apportioned to this state in accordance
with division (B) of section 5747.212 of the Revised Code without
regard to division (A) of that section.
If
the allocation and apportionment of a trust's income under divisions
(AA)(4)(a) and (c) of this section do not fairly represent the
modified Ohio taxable income of the trust in this state, the
alternative methods described in division (C) of section 5747.21 of
the Revised Code may be applied in the manner and to the same extent
provided in that section.
(5)(a)
Except as set forth in division (AA)(5)(b) of this section,
"qualifying investee" means a person in which a trust has
an equity or ownership interest, or a person or unit of government
the debt obligations of either of which are owned by a trust. For the
purposes of division (AA)(2)(a) of this section and for the purpose
of computing the fraction described in division (AA)(4)(b) of this
section, all of the following apply:
(i)
If the qualifying investee is a member of a qualifying controlled
group on the last day of the qualifying investee's fiscal or calendar
year ending immediately prior to the date on which the trust
recognizes the gain or loss, then "qualifying investee"
includes all persons in the qualifying controlled group on such last
day.
(ii)
If the qualifying investee, or if the qualifying investee and any
members of the qualifying controlled group of which the qualifying
investee is a member on the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on which
the trust recognizes the gain or loss, separately or cumulatively
own, directly or indirectly, on the last day of the qualifying
investee's fiscal or calendar year ending immediately prior to the
date on which the trust recognizes the qualifying trust amount, more
than fifty per cent of the equity of a pass-through entity, then the
qualifying investee and the other members are deemed to own the
proportionate share of the pass-through entity's physical assets
which the pass-through entity directly or indirectly owns on the last
day of the pass-through entity's calendar or fiscal year ending
within or with the last day of the qualifying investee's fiscal or
calendar year ending immediately prior to the date on which the trust
recognizes the qualifying trust amount.
(iii)
For the purposes of division (AA)(5)(a)(iii) of this section, "upper
level pass-through entity" means a pass-through entity directly
or indirectly owning any equity of another pass-through entity, and
"lower level pass-through entity" means that other
pass-through entity.
An
upper level pass-through entity, whether or not it is also a
qualifying investee, is deemed to own, on the last day of the upper
level pass-through entity's calendar or fiscal year, the
proportionate share of the lower level pass-through entity's physical
assets that the lower level pass-through entity directly or
indirectly owns on the last day of the lower level pass-through
entity's calendar or fiscal year ending within or with the last day
of the upper level pass-through entity's fiscal or calendar year. If
the upper level pass-through entity directly and indirectly owns less
than fifty per cent of the equity of the lower level pass-through
entity on each day of the upper level pass-through entity's calendar
or fiscal year in which or with which ends the calendar or fiscal
year of the lower level pass-through entity and if, based upon clear
and convincing evidence, complete information about the location and
cost of the physical assets of the lower pass-through entity is not
available to the upper level pass-through entity, then solely for
purposes of ascertaining if a gain or loss constitutes a qualifying
trust amount, the upper level pass-through entity shall be deemed as
owning no equity of the lower level pass-through entity for each day
during the upper level pass-through entity's calendar or fiscal year
in which or with which ends the lower level pass-through entity's
calendar or fiscal year. Nothing in division (AA)(5)(a)(iii) of this
section shall be construed to provide for any deduction or exclusion
in computing any trust's Ohio taxable income.
(b)
With respect to a trust that is not a resident for the taxable year
and with respect to a part of a trust that is not a resident for the
taxable year, "qualifying investee" for that taxable year
does not include a C corporation if both of the following apply:
(i)
During the taxable year the trust or part of the trust recognizes a
gain or loss from the sale, exchange, or other disposition of equity
or ownership interests in, or debt obligations of, the C corporation.
(ii)
Such gain or loss constitutes nonbusiness income.
(6)
"Available" means information is such that a person is able
to learn of the information by the due date plus extensions, if any,
for filing the return for the taxable year in which the trust
recognizes the gain or loss.
(BB)
"Qualifying controlled group" has the same meaning as in
section 5733.04 of the Revised Code.
(CC)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(DD)(1)
For the purposes of division (DD) of this section:
(a)
"Qualifying person" means any person other than a
qualifying corporation.
(b)
"Qualifying corporation" means any person classified for
federal income tax purposes as an association taxable as a
corporation, except either of the following:
(i)
A corporation that has made an election under subchapter S, chapter
one, subtitle A, of the Internal Revenue Code for its taxable year
ending within, or on the last day of, the investor's taxable year;
(ii)
A subsidiary that is wholly owned by any corporation that has made an
election under subchapter S, chapter one, subtitle A of the Internal
Revenue Code for its taxable year ending within, or on the last day
of, the investor's taxable year.
(2)
For the purposes of this chapter, unless expressly stated otherwise,
no qualifying person indirectly owns any asset directly or indirectly
owned by any qualifying corporation.
(EE)
For purposes of this chapter and Chapter 5751. of the Revised Code:
(1)
"Trust" does not include a qualified pre-income tax trust.
(2)
A "qualified pre-income tax trust" is any pre-income tax
trust that makes a qualifying pre-income tax trust election as
described in division (EE)(3) of this section.
(3)
A "qualifying pre-income tax trust election" is an election
by a pre-income tax trust to subject to the tax imposed by section
5751.02 of the Revised Code the pre-income tax trust and all
pass-through entities of which the trust owns or controls, directly,
indirectly, or constructively through related interests, five per
cent or more of the ownership or equity interests. The trustee shall
notify the tax commissioner in writing of the election on or before
April 15, 2006. The election, if timely made, shall be effective on
and after January 1, 2006, and shall apply for all tax periods and
tax years until revoked by the trustee of the trust.
(4)
A "pre-income tax trust" is a trust that satisfies all of
the following requirements:
(a)
The document or instrument creating the trust was executed by the
grantor before January 1, 1972;
(b)
The trust became irrevocable upon the creation of the trust; and
(c)
The grantor was domiciled in this state at the time the trust was
created.
(FF)
"Uniformed services" means all of the following:
(1)
"Armed forces of the United States" as defined in section
5907.01 of the Revised Code;
(2)
The commissioned corps of the national oceanic and atmospheric
administration;
(3)
The commissioned corps of the public health service.
(GG)
"Taxable business income" means the amount by which an
individual's business income that is included in federal adjusted
gross income exceeds the amount of business income the individual is
authorized to deduct under division (A)(28) of this section for the
taxable year.
(HH)
"Employer" does not include a franchisor with respect to
the franchisor's relationship with a franchisee or an employee of a
franchisee, unless the franchisor agrees to assume that role in
writing or a court of competent jurisdiction determines that the
franchisor exercises a type or degree of control over the franchisee
or the franchisee's employees that is not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademark,
brand, or both. For purposes of this division, "franchisor"
and "franchisee" have the same meanings as in 16 C.F.R.
436.1.
(II)
"Modified adjusted gross income" means Ohio adjusted gross
income plus any amount deducted under divisions (A)(28) and (34) of
this section for the taxable year.
(JJ)
"Qualifying Ohio educator" means an individual who, for a
taxable year, qualifies as an eligible educator, as that term is
defined in section 62 of the Internal Revenue Code, and who holds a
certificate, license, or permit described in Chapter 3319. or section
3301.071 of the Revised Code.
Sec.
5747.331.
(A)
As used in this section:
(1)
"Borrower" means any person that receives a loan from the
director of
housing
and
development
under section 166.21 of the Revised Code, regardless of whether the
borrower is subject to the tax imposed by section 5747.02 of the
Revised Code.
(2)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(3)
"Qualified research and development loan payments" has the
same meaning as in section 166.21 of the Revised Code.
(B)
Beginning with taxable years beginning in 2003, a nonrefundable
credit is allowed against a taxpayer's aggregate tax liability under
section 5747.02 of the Revised Code equal to a borrower's qualified
research and development loan payments made during the calendar year
that includes the last day of the taxable year for which the credit
is claimed. The amount of the credit for a taxable year shall not
exceed one hundred fifty thousand dollars. No taxpayer is entitled to
claim a credit under this section unless it has obtained a
certificate issued by the director of
housing
and
development
under division (D) of section 166.21 of the Revised Code and submits
a copy of the certificate with its report for the taxable year.
Failure to submit a copy of the certificate with the report does not
invalidate a claim for a credit if the taxpayer submits a copy of the
certificate within sixty days after the tax commissioner requests it.
The credit shall be claimed in the order required under section
5747.98 of the Revised Code. No credit shall be allowed under this
section if the credit was available against the tax imposed by
Chapter 5751. of the Revised Code except to the extent the credit was
not applied against that tax. The credit, to the extent it exceeds
the taxpayer's aggregate tax liability for the taxable year after
allowance for any other credits that precede the credit under this
section in that order, shall be carried forward to the next
succeeding taxable year or years until fully used.
(C)
A borrower entitled to a credit under this section may assign the
credit, or a portion thereof, to any of the following:
(1)
A related member of that borrower;
(2)
The owner or lessee of the eligible research and development project;
(3)
A related member of the owner or lessee of the eligible research and
development project.
A
borrower making an assignment under this division shall provide
written notice of the assignment to the tax commissioner and the
director of
housing
and
development,
in such form as the tax commissioner prescribes, before the credit
that was assigned is used. The assignor may not claim the credit to
the extent it was assigned to an assignee. The assignee may claim the
credit only to the extent the assignor has not claimed it.
(D)
If any taxpayer is a shareholder in an S corporation, a partner in a
partnership, or a member in a limited liability company treated as a
partnership for federal income tax purposes, the taxpayer shall be
allowed the taxpayer's distributive or proportionate share of the
credit available through the S corporation, partnership, or limited
liability company.
(E)
The aggregate credit against the taxes imposed by section 5747.02 and
Chapter 5751. of the Revised Code that may be claimed under this
section and section 5751.52 of the Revised Code by a borrower as a
result of qualified research and development loan payments
attributable during a calendar year to any one loan shall not exceed
one hundred fifty thousand dollars.
Sec.
5747.51.
(A)
On or before the twenty-fifth day of July of each year, the tax
commissioner shall make and certify to the county auditor of each
county an estimate of the amount of the local government fund to be
allocated to the undivided local government fund of each county for
the ensuing calendar year, adjusting the total as required to account
for subdivisions receiving local government funds under section
5747.502 of the Revised Code.
(B)
At each annual regular session of the county budget commission
convened pursuant to section 5705.27 of the Revised Code, each
auditor shall present to the commission the certificate of the
commissioner, the annual tax budget and estimates, and the records
showing the action of the commission in its last preceding regular
session. The commission, after extending to the representatives of
each subdivision an opportunity to be heard, under oath administered
by any member of the commission, and considering all the facts and
information presented to it by the auditor, shall determine the
amount of the undivided local government fund needed by and to be
apportioned to each subdivision for current operating expenses, as
shown in the tax budget of the subdivision. This determination shall
be made pursuant to divisions (C) to (I) of this section, unless the
commission has provided for a formula pursuant to section 5747.53 of
the Revised Code. The commissioner shall reduce the amount of funds
from the undivided local government fund to a subdivision required to
receive reduced funds under section 5747.502 of the Revised Code.
Nothing
in this section prevents the budget commission, for the purpose of
apportioning the undivided local government fund, from inquiring into
the claimed needs of any subdivision as stated in its tax budget, or
from adjusting claimed needs to reflect actual needs. For the
purposes of this section, "current operating expenses"
means the lawful expenditures of a subdivision, except those for
permanent improvements and except payments for interest, sinking
fund, and retirement of bonds, notes, and certificates of
indebtedness of the subdivision.
(C)
The commission shall determine the combined total of the estimated
expenditures, including transfers, from the general fund and any
special funds other than special funds established for road and
bridge; street construction, maintenance, and repair; state highway
improvement; and gas, water, sewer, and electric public utilities
operated by a subdivision, as shown in the subdivision's tax budget
for the ensuing calendar year.
(D)
From the combined total of expenditures calculated pursuant to
division (C) of this section, the commission shall deduct the
following expenditures, if included in these funds in the tax budget:
(1)
Expenditures for permanent improvements as defined in division (E) of
section 5705.01 of the Revised Code;
(2)
In the case of counties and townships, transfers to the road and
bridge fund, and in the case of municipalities, transfers to the
street construction, maintenance, and repair fund and the state
highway improvement fund;
(3)
Expenditures for the payment of debt charges;
(4)
Expenditures for the payment of judgments.
(E)
In addition to the deductions made pursuant to division (D) of this
section, revenues accruing to the general fund and any special fund
considered under division (C) of this section from the following
sources shall be deducted from the combined total of expenditures
calculated pursuant to division (C) of this section:
(1)
Taxes levied within the ten-mill limitation, as defined in section
5705.02 of the Revised Code;
(2)
The budget commission allocation of estimated county public library
fund revenues to be distributed pursuant to section 5747.48 of the
Revised Code;
(3)
Estimated unencumbered balances as shown on the tax budget as of the
thirty-first day of December of the current year in the general fund,
but not any estimated balance in any special fund considered in
division (C) of this section;
(4)
Revenue, including transfers, shown in the general fund and any
special funds other than special funds established for road and
bridge; street construction, maintenance, and repair; state highway
improvement; and gas, water, sewer, and electric public utilities,
from all other sources except those that a subdivision receives from
an additional tax or service charge voted by its electorate or
receives from special assessment or revenue bond collection. For the
purposes of this division, where the charter of a municipal
corporation prohibits the levy of an income tax, an income tax levied
by the legislative authority of such municipal corporation pursuant
to an amendment of the charter of that municipal corporation to
authorize such a levy represents an additional tax voted by the
electorate of that municipal corporation. For the purposes of this
division, any measure adopted by a board of county commissioners
pursuant to section 322.02, 4504.02, or 5739.021 of the Revised Code,
including those measures upheld by the electorate in a referendum
conducted pursuant to section 322.021, 4504.021, or 5739.022 of the
Revised Code, shall not be considered an additional tax voted by the
electorate.
Subject
to division (F) of section 5705.29 of the Revised Code, money in a
reserve balance account established by a county, township, or
municipal corporation under section 5705.13 of the Revised Code shall
not be considered an unencumbered balance or revenue under division
(E)(3) or (4) of this section. Money in a reserve balance account
established by a township under section 5705.132 of the Revised Code
shall not be considered an unencumbered balance or revenue under
division (E)(3) or (4) of this section.
If
a county, township, or municipal corporation has created and
maintains a nonexpendable trust fund under section 5705.131 of the
Revised Code, the principal of the fund, and any additions to the
principal arising from sources other than the reinvestment of
investment earnings arising from such a fund, shall not be considered
an unencumbered balance or revenue under division (E)(3) or (4) of
this section. Only investment earnings arising from investment of the
principal or investment of such additions to principal may be
considered an unencumbered balance or revenue under those divisions.
(F)
The total expenditures calculated pursuant to division (C) of this
section, less the deductions authorized in divisions (D) and (E) of
this section, shall be known as the "relative need" of the
subdivision, for the purposes of this section.
(G)
The budget commission shall total the relative need of all
participating subdivisions in the county, and shall compute a
relative need factor by dividing the total estimate of the undivided
local government fund by the total relative need of all participating
subdivisions.
(H)
The relative need of each subdivision shall be multiplied by the
relative need factor to determine the proportionate share of the
subdivision in the undivided local government fund of the county;
provided, that the maximum proportionate share of a county shall not
exceed the following maximum percentages of the total estimate of the
undivided local government fund governed by the relationship of the
percentage of the population of the county that resides within
municipal corporations within the county to the total population of
the county as reported in the reports on population in Ohio by the
department of
housing
and
development
as of the twentieth day of July of the year in which the tax budget
is filed with the budget commission:
1
2
A
Percentage
of municipal population within the county:
Percentage
share of the county shall not exceed:
B
Less
than forty-one per cent
Sixty
per cent
C
Forty-one
per cent or more but less than eighty-one per cent
Fifty
per cent
D
Eighty-one
per cent or more
Thirty
per cent
Where
the proportionate share of the county exceeds the limitations
established in this division, the budget commission shall adjust the
proportionate shares determined pursuant to this division so that the
proportionate share of the county does not exceed these limitations,
and it shall increase the proportionate shares of all other
subdivisions on a pro rata basis. In counties having a population of
less than one hundred thousand, not less than ten per cent shall be
distributed to the townships therein.
(I)
The proportionate share of each subdivision in the undivided local
government fund determined pursuant to division (H) of this section
for any calendar year shall not be less than the product of the
average of the percentages of the undivided local government fund of
the county as apportioned to that subdivision for the calendar years
1968, 1969, and 1970, multiplied by the total amount of the undivided
local government fund of the county apportioned pursuant to former
section 5739.23 of the Revised Code for the calendar year 1970. For
the purposes of this division, the total apportioned amount for the
calendar year 1970 shall be the amount actually allocated to the
county in 1970 from the state collected intangible tax as levied by
section 5707.03 of the Revised Code and distributed pursuant to
section 5725.24 of the Revised Code, plus the amount received by the
county in the calendar year 1970 pursuant to division (B)(1) of
former section 5739.21 of the Revised Code, and distributed pursuant
to former section 5739.22 of the Revised Code. If the total amount of
the undivided local government fund for any calendar year is less
than the amount of the undivided local government fund apportioned
pursuant to former section 5739.23 of the Revised Code for the
calendar year 1970, the minimum amount guaranteed to each subdivision
for that calendar year pursuant to this division shall be reduced on
a basis proportionate to the amount by which the amount of the
undivided local government fund for that calendar year is less than
the amount of the undivided local government fund apportioned for the
calendar year 1970.
(J)
On the basis of such apportionment, the county auditor shall compute
the percentage share of each such subdivision in the undivided local
government fund and shall at the same time certify to the tax
commissioner the percentage share of the county as a subdivision. No
payment shall be made from the undivided local government fund,
except in accordance with such percentage shares.
Within
ten days after the budget commission has made its apportionment,
whether conducted pursuant to section 5747.51 or 5747.53 of the
Revised Code, the auditor shall publish a list of the subdivisions
and the amount each is to receive from the undivided local government
fund and the percentage share of each subdivision, in a newspaper or
newspapers of countywide circulation, and send a copy of such
allocation to the tax commissioner.
The
county auditor shall also send a copy of such allocation by ordinary
or electronic mail to the fiscal officer of each subdivision entitled
to participate in the allocation of the undivided local government
fund of the county. This copy shall constitute the official notice of
the commission action referred to in section 5705.37 of the Revised
Code.
All
money received into the treasury of a subdivision from the undivided
local government fund in a county treasury shall be paid into the
general fund and used for the current operating expenses of the
subdivision.
If
a municipal corporation maintains a municipal university, such
municipal university, when the board of trustees so requests the
legislative authority of the municipal corporation, shall participate
in the money apportioned to such municipal corporation from the total
local government fund, however created and constituted, in such
amount as requested by the board of trustees, provided such sum does
not exceed nine per cent of the total amount paid to the municipal
corporation.
If
any public official fails to maintain the records required by
sections 5747.50 to 5747.55 of the Revised Code or by the rules
issued by the tax commissioner, the auditor of state, or the
treasurer of state pursuant to such sections, or fails to comply with
any law relating to the enforcement of such sections, the local
government fund money allocated to the county may be withheld until
such time as the public official has complied with such sections or
such law or the rules issued pursuant thereto.
Sec.
5747.66.
(A)
Any term used in this section has the same meaning as in section
122.85 of the Revised Code.
(B)
There is allowed a credit against a taxpayer's aggregate tax
liability under section 5747.02 of the Revised Code for any
individual who, on the last day of the individual's taxable year, is
the certificate owner of a tax credit certificate issued under
section 122.85 of the Revised Code. The credit shall be claimed for
the taxable year that includes the date the certificate was issued by
the director of
housing
and
development.
The credit amount equals the amount stated in the certificate. The
credit shall be claimed in the order required under section 5747.98
of the Revised Code. If the credit amount exceeds the aggregate
amount of tax otherwise due under section 5747.02 of the Revised Code
after deducting all other credits in that order, the excess shall be
refunded.
Nothing
in this section limits or disallows pass-through treatment of the
credit.
Sec.
5747.67.
(A)
Any term used in this section has the same meaning as in section
122.852 of the Revised Code.
(B)
There is allowed a credit against a taxpayer's aggregate tax
liability under section 5747.02 of the Revised Code for any taxpayer
who, on the last day of the taxpayer's taxable year, is the
certificate owner of a tax credit certificate issued under section
122.852 of the Revised Code. The credit shall be claimed for the
taxpayer's taxable year that includes the date the certificate was
issued by the director of
housing
and
development.
The credit amount equals the amount stated in the certificate or the
portion of that amount owned by the certificate owner. The credit
shall be claimed in the order required under section 5747.98 of the
Revised Code. If the credit amount exceeds the aggregate amount of
tax otherwise due under section 5747.02 of the Revised Code after
deducting all other credits in that order, the excess shall be
refunded.
(C)
Nothing in this section limits or disallows pass-through treatment of
the credit.
Sec.
5751.52.
(A)
As used in this section:
(1)
"Borrower" means any person that receives a loan from the
director of
housing
and
development
under section 166.21 of the Revised Code, regardless of whether the
borrower is subject to the tax imposed by this chapter.
(2)
"Qualified research and development loan payments" has the
same meaning as in section 166.21 of the Revised Code.
(3)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.
(B)
For tax periods beginning on or after January 1, 2008, a
nonrefundable credit may be claimed under this chapter equal to a
borrower's qualified research and development loan payments made
during the calendar year immediately preceding the tax period for
which the credit is claimed. The amount of the credit for a calendar
year shall not exceed one hundred fifty thousand dollars. No taxpayer
is entitled to claim a credit under this section unless the taxpayer
has obtained a certificate issued by the director of
housing
and
development
under division (D) of section 166.21 of the Revised Code. The credit
shall be claimed in the order required under section 5751.98 of the
Revised Code. The credit, to the extent it exceeds the taxpayer's
liability for the tax imposed under this chapter for a tax period
after allowance for any other credits that precede the credit under
this section in that order, may either be carried forward to the next
succeeding tax period or periods or be claimed against the tax
imposed under section 5747.02 as authorized under section 5747.331 of
the Revised Code, but the amount of the excess credit claimed against
either tax for any tax period or taxable year shall be deducted from
the balance carried forward to the next tax period.
(C)
A borrower entitled to a credit under this section may assign the
credit, or a portion thereof, to any of the following:
(1)
A related member of that borrower;
(2)
The owner or lessee of the eligible research and development project;
(3)
A related member of the owner or lessee of the eligible research and
development project.
A
borrower making an assignment under this division shall provide
written notice of the assignment to the tax commissioner and the
director of
housing
and
development,
in such form as the commissioner prescribes, before the credit that
was assigned is used. The assignor may not claim the credit to the
extent it was assigned to an assignee. The assignee may claim the
credit only to the extent the assignor has not claimed it.
(D)
If any taxpayer is a partner in a partnership or a member in a
limited liability company treated as a partnership for federal income
tax purposes, the taxpayer shall be allowed the taxpayer's
distributive or proportionate share of the credit available through
the partnership or limited liability company.
(E)
The aggregate credit against the taxes imposed by this chapter and
section 5747.02 of the Revised Code that may be claimed under this
section and section 5747.331 of the Revised Code by a borrower as a
result of qualified research and development loan payments
attributable during a calendar year to any one loan shall not exceed
one hundred fifty thousand dollars.
Sec.
5751.54.
(A)
Any term used in this section has the same meaning as in section
122.85 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5751.02 of the Revised Code for any person that is the
certificate owner of a tax credit certificate issued under section
122.85 of the Revised Code. The credit shall be claimed for the tax
period in which the certificate is issued by the director of
housing
and
development
services
.
The credit amount equals the amount stated in the certificate. The
credit shall be claimed in the order required under section 5751.98
of the Revised Code. If the credit amount exceeds the tax otherwise
due under section 5751.02 of the Revised Code after deducting all
other credits in that order, the excess shall be refunded.
(C)
Nothing in this section allows a person to claim more than one credit
per tax credit-eligible production.
Sec.
5751.55.
(A)
Any term used in this section has the same meaning as in section
122.852 of the Revised Code.
(B)
There is allowed a refundable credit against the tax imposed by
section 5751.02 of the Revised Code for any person that is the
certificate owner of a tax credit certificate issued under section
122.852 of the Revised Code. The credit shall be claimed for the tax
period in which the certificate is issued by the director of
housing
and
development.
The credit amount equals the amount stated in the certificate or the
portion of that amount owned by the certificate owner. The credit
shall be claimed in the order required under section 5751.98 of the
Revised Code. If the credit amount exceeds the tax otherwise due
under section 5751.02 of the Revised Code after deducting all other
credits in that order, the excess shall be refunded.
Sec.
6111.12.
(A)
The director of environmental protection shall establish an
antidegradation policy applicable to surface waters of the state
pursuant to applicable federal laws and regulations. The purpose of
the policy shall be to maintain levels of water quality that are
currently better than prescribed by applicable standards except in
situations when a need to allow a lower level of water quality is
demonstrated based on technical, social, and economic criteria. Not
later than March 31, 1994, the director shall revise the existing
antidegradation policy established in rules adopted under section
6111.041 of the Revised Code and revise any necessary implementation
procedures to conform them to the following principles and any
mandatory regulations adopted under the Federal Water Pollution
Control Act:
(1)
The use of existing effluent quality as a method of calculating
antidegradation-based limits shall be imposed only to the extent that
the use is explicitly required by federal law or regulation as the
only means available to implement antidegradation.
(2)
No degradation shall be allowed in waters for any pollutant that
currently does not meet applicable standards. For all remaining
waters, there shall be provisions requiring federal antidegradation
requirements to be met and provisions ensuring that waters of
exceptional recreational or ecological value are maintained as high
quality resources for future generations. There shall be at least two
categories of surface waters identified in the state for that purpose
and for the purpose of establishing priorities for the administrative
and technical resources expended on antidegradation reviews.
(3)
Whenever current ambient water quality is determined to be of a
higher quality than prescribed in the standards, on a
pollutant-by-pollutant basis, and the water body lacks exceptional
recreational or ecological value, the director may allocate to
existing sources eighty per cent of the pollutant assimilative
capacity as determined by appropriate total maximum daily load
procedures without further antidegradation review. The permittee for
any existing source may receive an effluent limitation based on not
more than one hundred per cent of the mass or concentration levels
necessary to meet applicable water quality in the receiving water
body as determined by appropriate total maximum daily load
procedures, provided that there has been a satisfactory demonstration
of the need to allow lower water quality based on technical, social,
and economic criteria and the action is preceded by a public notice.
Sources other than existing sources that result in ten per cent or
greater change, that is, degradation, of ambient chemical water
quality shall require a demonstration of technical, social, and
economic need and shall be the subject of a public notice.
(4)
Degradation of waters identified as possessing exceptional
recreational or ecological value shall be determined through an
analysis of the expected perceptible change in ambient concentrations
of pollutant or alternatively through an analysis of the expected
change in the biological condition of the water body. Either
determination shall constitute a lowering of water quality and shall
require an antidegradation review. The director shall establish, by
rules adopted in accordance with Chapter 119. of the Revised Code, a
definition of perceptible change that shall be applicable to those
waters identified in rule as possessing exceptional recreational or
ecological value. Antidegradation reviews shall be required for any
activity resulting in a perceptible change in ambient chemical or
biological quality on waters identified as possessing exceptional
recreational or ecological value. Allowances shall be made for
existing sources to retain their current permit limits with no
requirement to demonstrate technical, social, and economic need.
(5)
The director shall establish reasonable protocols for completing
technical, social, and economic need demonstrations based on existing
federal guidance and on input from the department of
housing
and
development,
the regulated community, and the general public.
(B)
Effluent limitations established by the director for any existing
source in any permit issued under division (J) of section 6111.03 of
the Revised Code prior to July 1, 1993, shall continue in effect
unless the permit is modified by the director. A discharger seeking
modification of antidegradation-based limitations that were based on
existing quality of discharge when the permit was issued shall apply
to the director for modification of the permit, consistent with rules
adopted under division (A) of this section, not later than one
hundred eighty days after July 1, 1993. If the permittee has filed
such a timely application for modification, the director shall not
pursue administrative or judicial enforcement actions for violations
of antidegradation-based limitations based on the existing quality of
effluent that occur after July 1, 1993.
(C)
A historically channelized watercourse provides technical, social,
and economic benefits. Therefore, with regard to a historically
channelized watercourse, the director shall not require further
antidegradation review during the review of an application for and
the issuance or denial of a permit under this chapter or a water
quality certification under section 401 of the Federal Water
Pollution Control Act if the director finds, after public notice and
opportunity for comment, and a public hearing if significant public
interest is shown, that all of the following apply:
(1)
Work is necessary to restore or maintain a drainage or other
improvement provided by a historically channelized watercourse.
(2)
The work is performed pursuant to section 940.06 of the Revised Code
or a petition filed under section 6131.04 or 6133.02 of the Revised
Code.
(3)
Without the work, flooding threatens public health and safety or may
result in significant damage to public or private property.
(4)
The work will not result in the loss of designated or existing
beneficial uses as those uses are described in rules adopted under
section 6111.041 of the Revised Code.
(5)
The work will not harm or interfere with the protection of federal or
state designated endangered or threatened species.
(6)
The historically channelized watercourse is not designated as
coldwater habitat, exceptional warmwater habitat, or a state resource
water in rules adopted under section 6111.041 of the Revised Code.
(7)
If information is available concerning resident fishery or
macroinvertebrate communities, or both, in the historically
channelized watercourse, the historically channelized watercourse
does not support a particularly diverse or unique warmwater habitat
as that term is defined in rules adopted under section 6111.041 of
the Revised Code.
(8)
Plans for the work have been submitted to the applicable soil and
water conservation district organized under Chapter 940. of the
Revised Code.
(9)
A storm water runoff plan has been developed for the watershed prior
to or during planning and design of the work and the work is
consistent with the plan.
(D)
As used in this section:
(1)
"Existing sources" means any treatment works that were
built and operational under the terms of an NPDES permit prior to
July 1, 1993, but does not include expansions or upgrades of existing
treatment works authorized in rules adopted under section 6111.03 of
the Revised Code after that date.
(2)
"Appropriate total maximum daily load procedures" means the
procedures, policies, and guidelines used by the director prior to
July 1, 1993, or subsequent revisions to those procedures established
in rules adopted in accordance with Chapter 119. of the Revised Code.
(3)
"Antidegradation review" means the consideration by the
director of the technical, social, and economic need demonstration
completed by any person requesting to lower water quality as provided
in this section, including the public notice of the application and,
at the discretion of the director, a public hearing on it.
Sec.
6121.02.
There
is hereby created the Ohio water development authority. Such
authority is a body both corporate and politic in this state, and the
carrying out of its purposes and the exercise by it of the powers
conferred by this chapter shall be held to be, and are hereby
determined to be, essential governmental functions and public
purposes of the state, but the authority is not immune from liability
by reason thereof. The authority is subject to all provisions of law
generally applicable to state agencies that do not conflict with this
chapter.
The
authority shall consist of eight members as follows: five members
appointed by the governor, with the advice and consent of the senate,
no more than three of whom shall be members of the same political
party, and the directors of natural resources, environmental
protection, and development, who shall be members ex officio without
compensation. The director of
housing
and
development
may designate a person in the unclassified civil service to serve in
the director's place as a member of the authority notwithstanding
section 121.05 of the Revised Code. The appointive members shall be
residents of the state, and shall have been qualified electors
therein for a period of at least five years next preceding their
appointment. Appointed members' terms of office shall be for eight
years, commencing on the second day of July and ending on the first
day of July. Each member shall hold office from the date of
appointment until the end of the term for which the member was
appointed. Any member appointed to fill a vacancy occurring prior to
the expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of such term. Any
appointed member shall continue in office subsequent to the
expiration date of the member's term until the member's successor
takes office, or until a period of sixty days has elapsed, whichever
occurs first. A member of the authority is eligible for
reappointment. Each appointed member of the authority, before
entering upon the performance of the duties of the office, shall take
an oath as provided by Section 7 of Article XV, Ohio Constitution.
The governor may at any time remove any member of the authority for
misfeasance, nonfeasance, or malfeasance in office.
The
authority shall elect one of its appointed members as chairperson and
another as vice-chairperson, and shall appoint a secretary-treasurer
who need not be a member of the authority. Four members of the
authority shall constitute a quorum, and the affirmative vote of four
members shall be necessary for any action taken by vote of the
authority. No vacancy in the membership of the authority shall impair
the rights of a quorum by such vote to exercise all the rights and
perform all the duties of the authority.
Before
the issuance of any water development revenue bonds under this
chapter, each appointed member of the authority shall give a surety
bond to the state in the penal sum of twenty-five thousand dollars
and the secretary-treasurer shall give such a bond in the penal sum
of fifty thousand dollars, each such surety bond to be conditioned
upon the faithful performance of the duties of the office, to be
executed by a surety company authorized to transact business in this
state, and to be approved by the governor and filed in the office of
the secretary of state. Each appointed member of the authority shall
receive an annual salary of seven thousand five hundred dollars,
payable in monthly installments, and is entitled to health care
benefits comparable to those generally available to state officers
and employees under section 124.82 of the Revised Code. If Section 20
of Article II, Ohio Constitution, prohibits the Ohio water
development authority from paying all or a part of the cost of health
care benefits on behalf of a member of the authority for the
remainder of an existing term, the member may receive these benefits
by paying their total cost from the member's own financial resources,
including paying by means of deductions from the member's salary.
Each member shall be reimbursed for actual expenses necessarily
incurred in the performance of official duties. All expenses incurred
in carrying out this chapter shall be payable solely from funds
provided under this chapter, or appropriated for such purpose by the
general assembly and no liability or obligation shall be incurred by
the authority beyond the extent to which moneys have been provided
under this chapter or such appropriations.
Sec.
6123.031.
To
create or preserve jobs and employment opportunities, to improve the
economic welfare of the people of the state, to control air, water,
and thermal pollution, or to dispose of solid waste, and pursuant to
Section 13, Article VIII, of the Ohio Constitution, the Ohio water
development authority may exercise the powers set forth in this
chapter, with the approval of a project by the director of
housing
and
development,
for the purpose of constructing or providing financial assistance for
the construction of any energy resource development facilities as
defined in section 1551.01 of the Revised Code. Determinations by
resolution of the authority that a facility is an energy resource
development facility, as so defined, and is consistent with the
purposes of Section 13 of Article VIII, Ohio Constitution and this
chapter shall be conclusive as to the validity and enforceability of
the development revenue bonds issued to finance such facility and of
the resolutions, trust agreements or indentures, leases, subleases,
sale agreements, loan agreements, and other agreements made in
connection therewith, all in accordance with their terms.
Section
2.
That
existing sections 9.47, 9.66, 107.03, 107.21, 117.55, 121.02, 121.03,
121.35, 122.01, 122.011, 122.012, 122.013, 122.014, 122.02, 122.03,
122.04, 122.041, 122.042, 122.05, 122.06, 122.07, 122.071, 122.073,
122.075, 122.077, 122.08, 122.081, 122.082, 122.083, 122.085,
122.086, 122.087, 122.088, 122.089, 122.0810, 122.0811, 122.0812,
122.0813, 122.0814, 122.0815, 122.0816, 122.0817, 122.09, 122.10,
122.11, 122.121, 122.131, 122.132, 122.133, 122.134, 122.135,
122.136, 122.14, 122.15, 122.151, 122.152, 122.153, 122.154, 122.155,
122.156, 122.16, 122.17, 122.171, 122.172, 122.173, 122.174, 122.175,
122.176, 122.177, 122.178, 122.179, 122.1710, 122.1711, 122.18,
122.19, 122.20, 122.21, 122.22, 122.23, 122.24, 122.25, 122.26,
122.27, 122.29, 122.291, 122.30, 122.31, 122.32, 122.33, 122.35,
122.36, 122.37, 122.38, 122.401, 122.403, 122.406, 122.4017,
122.4018, 122.4019, 122.4020, 122.4023, 122.4024, 122.4030, 122.4031,
122.4032, 122.4033, 122.4034, 122.4035, 122.4036, 122.4037, 122.4040,
122.4043, 122.4044, 122.4045, 122.4046, 122.4050, 122.4051, 122.4055,
122.4063, 122.4070, 122.4071, 122.4073, 122.4075, 122.4076, 122.4077,
122.41, 122.42, 122.43, 122.44, 122.45, 122.451, 122.46, 122.47,
122.48, 122.49, 122.52, 122.53, 122.54, 122.55, 122.56, 122.561,
122.57, 122.571, 122.58, 122.59, 122.60, 122.601, 122.602, 122.603,
122.604, 122.605, 122.61, 122.62, 122.63, 122.631, 122.632, 122.633,
122.64, 122.641, 122.6510, 122.6511, 122.6512, 122.67, 122.68,
122.681, 122.69, 122.70, 122.701, 122.71, 122.72, 122.73, 122.74,
122.75, 122.76, 122.77, 122.78, 122.79, 122.80, 122.81, 122.82,
122.84, 122.85, 122.851, 122.852, 122.86, 122.88, 122.89, 122.90,
122.91, 122.92, 122.921, 122.922, 122.923, 122.924, 122.925, 122.94,
122.941, 122.942, 122.951, 122.9511, 122.9512, 122.96, 123.01,
123.22, 125.08, 125.081, 125.111, 125.20, 125.836, 125.901, 126.023,
126.32, 126.62, 140.01, 145.035, 149.311, 150.02, 151.40, 153.59,
164.02, 165.01, 165.03, 165.20, 166.01, 166.02, 166.03, 166.04,
166.05, 166.06, 166.07, 166.08, 166.09, 166.12, 166.13, 166.14,
166.15, 166.16, 166.17, 166.18, 166.19, 166.20, 166.21, 166.25,
166.27, 167.02, 169.05, 173.08, 174.01, 174.02, 174.03, 174.04,
174.05, 174.06, 174.07, 175.03, 175.04, 175.06, 175.15, 176.01,
176.07, 184.01, 184.151, 184.16, 187.01, 187.03, 187.04, 187.05,
187.061, 191.02, 191.03, 191.10, 191.13, 191.15, 191.17, 191.19,
191.27, 191.30, 191.33, 191.35, 191.37, 191.40, 191.44, 191.45,
308.21, 321.261, 321.262, 333.03, 333.04, 333.05, 340.13, 703.34,
709.024, 709.192, 715.70, 715.72, 902.04, 991.02, 1517.14, 1551.01,
1551.05, 1551.06, 1551.11, 1551.12, 1551.15, 1551.19, 1551.20,
1551.311, 1551.32, 1551.33, 1551.35, 1555.02, 1555.03, 1555.04,
1555.05, 1555.06, 1555.08, 1555.17, 1728.01, 1728.07, 3326.02,
3327.17, 3333.373, 3333.50, 3366.01, 3366.03, 3366.04, 3735.27,
3735.39, 3735.66, 3735.671, 3735.672, 3735.673, 3735.69, 3742.32,
3746.121, 3746.20, 3775.04, 3780.03, 3780.19, 4121.123, 4164.04,
4164.12, 4301.17, 4303.181, 4303.262, 4503.591, 4582.58, 4901.021,
4906.02, 4928.06, 4928.43, 4928.51, 4928.52, 4928.53, 4928.54,
4928.543, 4928.544, 4928.55, 4928.56, 4928.57, 4928.58, 4928.581,
4928.582, 4928.583, 4928.61, 4928.62, 4928.63, 4928.75, 4929.16,
4929.161, 4929.163, 4981.02, 4981.03, 5101.16, 5104.30, 5117.02,
5117.03, 5117.04, 5117.05, 5117.07, 5117.071, 5117.08, 5117.09,
5117.10, 5117.12, 5117.22, 5119.34, 5120.07, 5126.071, 5126.18,
5501.031, 5531.08, 5703.0510, 5709.12, 5709.211, 5709.212, 5709.22,
5709.40, 5709.41, 5709.45, 5709.48, 5709.51, 5709.61, 5709.62,
5709.63, 5709.631, 5709.632, 5709.633, 5709.64, 5709.66, 5709.67,
5709.671, 5709.68, 5709.69, 5709.73, 5709.78, 5709.82, 5709.87,
5709.88, 5709.882, 5717.02, 5725.32, 5725.33, 5726.54, 5726.55,
5726.59, 5727.75, 5729.032, 5729.16, 5733.33, 5733.34, 5733.352,
5733.58, 5733.59, 5747.01, 5747.331, 5747.51, 5747.66, 5747.67,
5751.52, 5751.54, 5751.55, 6111.12, 6121.02, and 6123.031 of the
Revised Code are hereby repealed.
Section
3.
The
Speaker of the House of Representatives and the President of the
Senate shall appoint legislative members to the Ohio housing finance
agency, as required by this act, not later than thirty days after the
effective date of this section.
Not
later than ninety days after the effective date of this section, the
Ohio housing finance agency shall conduct at least one public hearing
to consider changes to the policies, guidelines, and scoring metrics
used in the administration of the agency's programs to resolve
inequities and increase participation in rural areas of the state.
Section
4.
The
Speaker of the House of Representatives and the President of the
Senate shall appoint legislative members to the Ohio housing trust
fund advisory committee, as required by this act, not later than
thirty days after the effective date of this section.
Section
5.
The
General Assembly, applying the principle stated in division (B) of
section 1.52 of the Revised Code that amendments are to be harmonized
if reasonably capable of simultaneous operation, finds that the
following sections, presented in this act as composites of the
sections as amended by the acts indicated, are the resulting versions
of the sections in effect prior to the effective date of the sections
as presented in this act:
Section
122.073 of the Revised Code as amended by both H.B. 487 and S.B. 314
of the 129th General Assembly.
Section
140.01 of the Revised Code as amended by both H.B. 110 and H.B. 281
of the 134th General Assembly.
Section
1551.20 of the Revised Code as amended by H.B. 632, S.B. 269, and
S.B. 271, all of the 120th General Assembly.
Section
4906.02 of the Revised Code as amended by both H.B. 110 and S.B. 52
of the 134th General Assembly.
Section
5117.07 of the Revised Code as amended by both H.B. 283 and S.B. 3 of
the 123rd General Assembly.
Section
5117.09 of the Revised Code as amended by both H.B. 283 and S.B. 3 of
the 123rd General Assembly.
Section
5747.01 of the Revised Code as amended by both H.B. 101 and S.B. 154
of the 135th General Assembly.