As Passed by the House

124th General Assembly
Regular Session
2001-2002
Sub. H. B. No. 385


REPRESENTATIVES Blasdel, Carey, Grendell, Faber, Gilb, Schmidt, Widowfield, Evans, Webster, Barrett, Seitz, Setzer, Calvert, Niehaus, Lendrum, Flowers, Carano, Sferra, Fedor, Woodard, Collier, Barnes, Britton, Patton, Latell, Key, Coates



A BILL
To amend sections 122.657, 122.658, 164.27, 901.22,1
and 5301.691, to enact section 126.141 of the2
Revised Code, and to amend Sections 6 and 7 of Am.3
Sub. H.B. 3 of the 124th General Assembly to4
specify that the release of appropriations to the5
Public Works Commission for purposes of certain6
projects involving natural resources and parks and7
recreation does not require the approval of the8
Controlling Board, to create a revolving loan fund9
for repayments of loans made from the Clean Ohio10
Revitalization Fund, to provide that the11
Department of Agriculture is a coholder of and may12
share in enforcing local Clean Ohio Agricultural13
Easement Fund easements, and to provide that Clean14
Ohio Conservation Fund money cannot be used for15
recreational trails.16


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

       Section 1. That sections 122.657, 122.658, 164.27, 901.22,17
and 5301.691 be amended and section 126.141 of the Revised Code be18
enacted to read as follows:19

       Sec. 122.657.  For the purposes of sections 122.65 to 122.65820
of the Revised Code, the director of development shall establish21
policies and requirements regarding all of the following:22

       (A) The form and content of applications for grants or loans23
from the clean Ohio revitalization fund under section 122.652 of24
the Revised Code. The policies and requirements shall require25
that each application include, at a minimum, all of the following:26

       (1) The name, address, and telephone number of the applicant;27

       (2) The legal description of the property for which the grant28
or loan is requested;29

       (3) A summary description of the hazardous substances or30
petroleum present at the brownfield and a certified copy of the31
results of an assessment;32

       (4) A detailed explanation of the proposed cleanup or33
remediation of the brownfield, including an identification of the34
applicable cleanup standards, and a detailed description of the35
proposed use of the brownfield after completion of the cleanup or36
remediation;37

       (5) An estimate of the total cost to clean up or remediate38
the brownfield in order to comply with the applicable cleanup39
standards. The total cost shall include the cost of employing a40
certified professional under section 122.654 of the Revised Code.41

       (6) A detailed explanation of the portion of the estimated42
total cost of the cleanup or remediation of the brownfield that43
the applicant proposes to provide as required under sections44
122.653 and 122.658 of the Revised Code and financial records45
supporting the proposal;46

       (7) A certified copy of a resolution or ordinance approving47
the project that the applicant shall obtain from the board of48
township trustees of the township or the legislative authority of49
the municipal corporation in which the property is located,50
whichever is applicable;51

       (8) A description of the estimated economic benefit that will52
result from a cleanup or remediation of the brownfield;53

       (9) An application summary for purposes of review by an54
integrating committee or, if applicable, the executive committee55
of an integrating committee under division (B) of section 122.65256
of the Revised Code;57

       (10) With respect to applications for loans, information58
demonstrating that the applicant will implement a financial59
management plan that includes, without limitation, provisions for60
the satisfactory repayment of the loan;61

       (11) Any other provisions that the director determines should62
be included in an application.63

       (B) Procedures for conducting public meetings and providing64
public notice under division (A) of section 122.652 of the Revised65
Code;66

       (C) Criteria to be used by integrating committees or, if67
required under division (C) of section 122.652 of the Revised68
Code, executive committees of integrating committees when69
prioritizing projects under division (B) of section 122.652 of the70
Revised Code. The policies and requirements also shall establish71
procedures that integrating committees or, if required under72
division (C) of section 122.652 of the Revised Code, executive73
committees of integrating committees shall use in applying the74
criteria.75

       (D) A selection process that provides for the prioritization76
of brownfield cleanup or remediation projects for which grant or77
loan applications are submitted under section 122.652 of the78
Revised Code. The policies and requirements shall require the79
selection process to give priority to projects in which the80
post-cleanup or remediation use will be for a combination of81
residential, commercial, or industrial purposes, which may include82
the conversion of a portion of a brownfield to a recreation, park,83
or natural area that is integrated with the residential,84
commercial, or industrial use of the brownfield after cleanup or85
remediation, or will incorporate projects that are funded by86
grants awarded under sections 164.20 to 164.27 of the Revised87
Code. The policies and requirements shall require the selection88
process to incorporate and emphasize all of the following factors:89

       (1) The potential economic benefit that will result from the90
cleanup or remediation of a brownfield;91

       (2) The potential environmental improvement that will result92
from the cleanup or remediation of a brownfield;93

       (3) The amount and nature of the match provided by an94
applicant as required under sections 122.653 and 122.658 of the95
Revised Code;96

       (4) Funding priorities recommended by integrating committees97
or, if required under division (C) of section 122.652 of the98
Revised Code, executive committees of integrating committees under99
division (B) of section 122.652 of the Revised Code;100

       (5) The potential benefit to low-income communities,101
including minority communities, that will result from the cleanup102
or remediation of a brownfield;103

       (6) Any other factors that the director considers104
appropriate.105

       (E) The development of criteria that the director shall use106
when awarding grants under section 122.656 of the Revised Code.107
The criteria shall give priority to public health projects. In108
addition, the director, in consultation with the director of109
environmental protection, shall establish policies and110
requirements that require the criteria to include a public health111
project selection process that incorporates and emphasizes all of112
the following factors:113

       (1) The potential environmental improvement that will result114
from the cleanup or remediation;115

       (2) The ability of an applicant to access the property for116
purposes of the cleanup or remediation;117

       (3) The name and qualifications of the cleanup or118
remediation contractor;119

       (4) Any other factors that the director of development120
considers appropriate.121

       The director of development may develop any other policies122
and requirements that the director determines are necessary for123
the administration of section 122.656 of the Revised Code.124

       (F) The development of a brownfield cleanup and remediation125
oversight program to ensure compliance with sections 122.65 to126
122.658 of the Revised Code and policies and requirements127
established under this section. The policies and requirements128
shall require the program to include, at a minimum, both of the129
following:130

       (1) Procedures for the accounting of invoices and receipts131
and any other documents that are necessary to demonstrate that a132
cleanup or remediation was properly performed;133

       (2) Procedures that are necessary to provide a detailed134
explanation of the status of the property five years after the135
completed cleanup or remediation.136

       (G) A delineation of what constitutes administrative costs137
for purposes of divisions (C) and (E) of section 122.658 of the138
Revised Code;139

       (H) Procedures and requirements for making loans and loan140
agreements that include at least all of the following:141

       (1) Not more than fifteen per cent of moneys annually142
allocated to the clean Ohio revitalization fund shall be used for143
loans.144

       (2) The loans shall be made at or below market rates of145
interest, including, without limitation, interest-free loans.146

       (3) The recipient of a loan shall identify a source of147
security and a source of repayment of the loan.148

       (4) All payments of principal and interest on a loan shall149
be deposited in the state treasury and credited to the clean Ohio150
revitalization revolving loan fund.151

       (5) The clean Ohio council may accept notes and other forms152
of obligation to evidence indebtedness, accept mortgages, liens,153
pledges, assignments, and other security interests to secure such154
indebtedness, and take any actions that are considered by the155
council to be appropriate to protect such security and safeguard156
against losses, including, without limitation, foreclosure and157
bidding on the purchase of property upon foreclosure or other158
sale.159

       (I) Any other policies and requirements that the director160
determines are necessary for the administration of sections 122.65161
to 122.658 of the Revised Code.162

       Sec. 122.658. (A) The clean Ohio revitalization fund is163
hereby created in the state treasury. The fund shall consist of164
moneys credited to it pursuant to section 151.40 of the Revised165
Code and of payments of principal and interest on loans that are166
made from the fund in accordance with policies and requirements167
established under section 122.657 of the Revised Code. Moneys in168
the fund shall be used to make grants or loans for projects that169
have been approved by the clean Ohio council in accordance with170
section 122.653 of the Revised Code, except that the council171
annually shall devote twenty per cent of the net proceeds of172
obligations deposited in the clean Ohio revitalization fund for173
the purposes of section 122.656 of the Revised Code.174

       Moneys in the clean Ohio revitalization fund may be used to175
pay reasonable costs incurred by the department of development and176
the environmental protection agency in administering sections177
122.65 to 122.658 of the Revised Code. All investment earnings of178
the fund shall be credited to the fund. For two years after the179
effective date of this sectionJuly 26, 2001, investment earnings180
credited to the clean Ohio revitalization fund may be used to pay181
costs incurred by the department of development and the182
environmental protection agency pursuant to sections 122.65 to183
122.658 of the Revised Code.184

       The department of development shall administer the clean Ohio185
revitalization fund in accordance with this section, policies and186
requirements established under section 122.657 of the Revised187
Code, and the terms of agreements entered into by the council188
under section 122.653 of the Revised Code.189

       (B) Grants awarded and loans made under section 122.653 of190
the Revised Code shall provide not more than seventy-five per cent191
of the estimated total cost of a project. A grant or loan to any192
one project shall not exceed three million dollars. An applicant193
shall provide at least twenty-five per cent of the estimated total194
cost of a project. The applicant's share may consist of one or a195
combination of any of the following:196

       (1) Payment of the cost of acquiring the property for the197
purposes of sections 122.65 to 122.658 of the Revised Code;198

       (2) Payment of the reasonable cost of an assessment at the199
property;200

       (3) The reasonable value, as determined by the council, of201
labor and materials that will be contributed by the applicant in202
performing the cleanup or remediation;203

       (4) Moneys received by the applicant in any form for use in204
performing the cleanup or remediation;205

       (5) Loans secured by the applicant for the purpose of the206
cleanup or remediation of the brownfield.207

       Costs that were incurred more than two years prior to the208
submission of an application to the clean Ohio council for the209
acquisition of property, assessments, and labor and materials210
shall not be used as part of the applicant's matching share.211

       (C) The department of development shall not make any payment212
to an applicant from the clean Ohio revitalization fund to pay213
costs of the applicant that were not included in an application214
for a grant or loan under section 122.653 of the Revised Code or215
that exceed the amount of the estimated total cost of the project216
included in the application. If, upon completion of a project,217
the costs of the project are less than the amounts included in the218
application, the amounts included in the application less the219
amounts of the actual costs of the project shall be credited to220
the clean Ohio revitalization fund. However, the amounts credited221
shall be equivalent in percentage to the percentage of the costs222
of the project that were to be funded by the grant or loan from223
the fund.224

       (D) Grants awarded or loans made under section 122.653 of225
the Revised Code from the clean Ohio revitalization fund shall be226
used by an applicant only to pay the costs of the actual cleanup227
or remediation of a brownfield and shall not be used by an228
applicant to pay any administrative costs incurred by the229
applicant. Costs related to the use of a certified professional230
for purposes of section 122.654 of the Revised Code are not231
administrative costs and may be paid with moneys from grants232
awarded or loans made under section 122.653 of the Revised Code.233

       (E) The portion of net proceeds of obligations devoted234
under division (A) of this section for the purposes of section235
122.656 of the Revised Code shall be used to make grants for236
assessments, cleanup or remediation of brownfields, and public237
health projects that have been approved by the director of238
development under that section. The department of development239
shall administer section 122.656 of the Revised Code in accordance240
with this section, policies and requirements established under241
section 122.657 of the Revised Code, and the terms of agreements242
entered into by the director under section 122.656 of the Revised243
Code. The director shall not grant more than twenty-five million244
dollars for public health projects under section 122.656 of the245
Revised Code.246

       (F) Grants awarded under section 122.656 of the Revised Code247
shall be used by an applicant only to pay the costs of actually248
conducting an assessment, a cleanup or remediation of a249
brownfield, or a public health project and shall not be used by an250
applicant to pay any administrative costs incurred by the251
applicant. Costs related to the use of a certified professional252
for purposes of section 122.654 of the Revised Code are not253
administrative costs and may be paid with moneys from grants254
awarded under section 122.656 of the Revised Code.255

       (G)(1) The clean Ohio revitalization revolving loan fund is256
hereby created in the state treasury. Payments of principal and257
interest on loans made from the clean Ohio revitalization fund258
shall be credited to this revolving loan fund, as shall payments259
of principal and interest on loans made from the revolving loan260
fund itself. The revolving loan fund's investment earnings shall261
be credited to it.262

       (2) The clean Ohio revitalization revolving loan fund shall263
be used to make loans for the same purposes and subject to the264
same policies, requirements, criteria, and application procedures265
as loans made from the clean Ohio revitalization fund.266

       Sec. 126.141. Notwithstanding section 126.14 of the Revised267
Code, appropriations from the clean Ohio conservation fund created268
in section 164.27 of the Revised Code to the public works269
commission for the purpose of projects that have been approved for270
grants under sections 164.20 to 164.27 of the Revised Code shall271
be released upon the presentation of a request to release the272
moneys that is made by the commission to the director of budget273
and management. Such a release does not require the approval of274
the controlling board.275

       Sec. 164.27. (A) The clean Ohio conservation fund is hereby276
created in the state treasury. Seventy-five per cent of the net277
proceeds of obligations issued and sold by the issuing authority278
pursuant to sections 151.01 and 151.09 of the Revised Code shall279
be deposited into the fund. Investment earnings of the fund shall280
be credited to the fund. For two years after the effective date of281
this section, investment earnings credited to the fund may be used282
to pay costs incurred by the Ohio public works commission in283
administering sections 164.20 to 164.27 of the Revised Code.284
Moneys in the clean Ohio conservation fund shall be used to make285
grants to local political subdivisions and nonprofit organizations286
for projects that have been approved for grants under sections287
164.20 to 164.27 of the Revised Code.288

       The clean Ohio conservation fund shall be administered by289
the Ohio public works commission.290

       (B) For the purpose of grants issued under sections 164.20291
to 164.27 of the Revised Code, moneys shall be allocated on an292
annual basis from the clean Ohio conservation fund to districts293
represented by natural resources assistance councils as follows:294

       (1) Each district shall receive an amount that is equal to295
one-fourth of one per cent of the total annual amount allocated to296
all districts each year for each county that is represented by the297
district.298

       (2) The remaining moneys shall be allocated to each district299
annually on a per capita basis.300

       (C) A grant that is awarded under sections 164.20 to 164.27301
of the Revised Code may provide up to seventy-five per cent of the302
estimated cost of a project. Matching funds from a grant303
recipient may consist of contributions of money by any person, any304
local political subdivision, or the federal government or of305
contributions in-kind by such entities through the purchase or306
donation of equipment, land, easements, interest in land, labor,307
or materials necessary to complete the project.308

       (D) The director of the Ohio public works commission shall309
notify the director of budget and management of the amounts310
allocated pursuant to this section, and that information shall be311
entered in the state accounting system. The director of budget312
and management may establish appropriate line items or other313
mechanisms that are needed to track the allocations.314

       (E) Grants awarded under sections 164.20 to 164.27 of the315
Revised Code from the clean Ohio conservation fund shall be used316
by a local political subdivision or nonprofit organization only to317
pay the costs related to the purposes for which grants may be318
issued under section 164.22 of the Revised Code and shall not be319
used by a local political subdivision or nonprofit organization to320
pay any administrative costs incurred by the local political321
subdivision or nonprofit organization.322

       (F) No money from the clean Ohio conservation fund shall be323
used for recreational trails, as the term "recreational trail" is324
used in Chapter 1519. of the Revised Code.325

       Sec. 901.22.  (A) The director of agriculture, in accordance326
with Chapter 119. of the Revised Code, shall adopt rules that do327
all of the following:328

       (1) Establish procedures and eligibility criteria for making329
matching grants to municipal corporations, counties, townships,330
and charitable organizations described in division (B) of section331
5301.69 of the Revised Code for the purchase of agricultural332
easements. With respect to agricultural easements that are333
purchased or proposed to be purchased with such matching grants334
that consist in whole or in part of moneys from the clean Ohio335
agricultural easement fund created in section 901.21 of the336
Revised Code, the rules shall establish all of the following:337

       (a) Procedures for all of the following:338

       (i) Soliciting and accepting applications for matching339
grants;340

       (ii) Participation by local governments and by the public in341
the process of making matching grants to charitable organizations;342

       (iii) Notifying local governments, charitable organizations,343
and organizations that represent the interests of farmers of the344
ranking system established in rules adopted under division345
(A)(1)(b) of this section.346

       (b) A ranking system for applications for the matching347
grants that is based on the soil type, proximity of the land or348
other land that is conducive to agriculture as defined by rules349
adopted under this section and that is the subject of an350
application to other agricultural land or other land that is351
conducive to agriculture as defined by rules adopted under this352
section and that is already or is in the process of becoming353
permanently protected from development, farm stewardship,354
development pressure, and, if applicable, a local comprehensive355
land use plan involved with a proposed agricultural easement. The356
rules shall require that preference be given to proposed357
agricultural easements that involve the greatest proportion of all358
of the following:359

       (i) Prime soils, unique or locally important soils,360
microclimates, or similar features;361

       (ii) Land that is adjacent to or that is in close proximity362
to other agricultural land or other land that is conducive to363
agriculture as defined by rules adopted under this section and364
that is already or is in the process of becoming permanently365
protected from development, by agricultural easement or otherwise,366
so that a buffer would exist between the land involving the367
proposed agricultural easement and areas that have been developed368
or likely will be developed for purposes other than agriculture;369

       (iii) The use of best management practices, including370
federally or state approved conservation plans, and a history of371
substantial compliance with applicable federal and state laws;372

       (iv) Development pressure that is imminent, but not a result373
of current location in the direct path of urban development;374

       (v) Areas identified for agricultural protection in local375
comprehensive land use plans.376

       (c) Any other criteria that the director determines are377
necessary for selecting applications for matching grants;378

       (d) Requirements regarding the information that must be379
included in the annual monitoring report that must be prepared for380
an agricultural easement under division (D)(2) of section 5301.691381
of the Revised Code, procedures for submitting a copy of the382
report to the office of farmland preservation in the department of383
agriculture, and requirements and procedures governing corrective384
actions that may be necessary to enforce the terms of the385
agricultural easement.386

       (2) Establish provisions that shall be included in the387
instrument conveying to a municipal corporation, county, township,388
or charitable organization any agricultural easement purchased389
with matching grant funds provided by the director under this390
section, including, without limitation, all of the following391
provisions:392

       (a) A provision stating that an easement so purchased may be393
extinguished only if an unexpected change in the conditions of or394
surrounding the land that is subject to the easement makes395
impossible or impractical the continued use of the land for the396
purposes described in the easement, or if the requirements of the397
easement are extinguished by judicial proceedings;398

       (b) A provision requiring that, upon the sale, exchange, or399
involuntary conversion of the land subject to the easement, the400
holder of the easement shall be paid an amount of money that is at401
least equal to the proportionate value of the easement compared to402
the total value of the land at the time the easement was acquired;403

       (c) A provision requiring that, upon receipt of the portion404
of the proceeds of a sale, exchange, or involuntary conversion405
described in division (A)(2)(b) of this section, the municipal406
corporation, county, township, or charitable organization remit to407
the director an amount of money equal to the percentage of the408
cost of purchasing the easement it received as a matching grant409
under this section.410

       Moneys received by the director pursuant to rules adopted411
under division (A)(2)(c) of this section shall be credited to the412
agricultural easement purchase fund created in section 901.21 of413
the Revised Code.414

       (3) Establish a provision that provides a charitable415
organization described in division (B) of section 5301.69 of the416
Revised Code, municipal corporation, township, or county with the417
option of purchasing agricultural easements either in installments418
or with a lump sum payment. The rules shall include a requirement419
that a charitable organization, municipal corporation, township,420
or county negotiate with the seller of the agricultural easement421
concerning any installment payment terms, including the dates and422
amounts of payments and the interest rate on the outstanding423
balance. The rules also shall require the director to approve any424
method of payment that is undertaken in accordance with the rules425
adopted under division (A)(3) of this section.426

       (4) Establish any other requirements that the director427
considers to be necessary or appropriate to implement or428
administer a program to make matching grants under this section429
and monitor those grants.430

       (B) The director may develop guidelines regarding the431
acquisition of agricultural easements by the department of432
agriculture and the provisions of instruments conveying those433
easements. The director may make the guidelines available to434
public and private entities authorized to acquire and hold435
agricultural easements.436

       (C) The director may provide technical assistance in437
developing a program for the acquisition and monitoring of438
agricultural easements to public and private entities authorized439
to hold agricultural easements. The technical assistance may440
include, without limitation, reviewing and providing advisory441
recommendations regarding draft instruments conveying agricultural442
easements.443

       (D) The director may make matching grants from the444
agricultural easement purchase fund and the clean Ohio445
agricultural easement fund to municipal corporations, counties,446
townships, and charitable organizations described in division (B)447
of section 5301.69 of the Revised Code, to assist those political448
subdivisions and charitable organizations in purchasing449
agricultural easements. Application for a matching grant shall be450
made on forms prescribed and provided by the director. The451
matching grants shall be made in compliance with the criteria and452
procedures established in rules adopted under this section.453
Instruments conveying agricultural easements purchased with454
matching grant funds provided under this section, at a minimum,455
shall include the mandatory provisions set forth in those rules.456

       Matching grants made under this division using moneys from457
the clean Ohio agricultural easement fund created in section458
901.21 of the Revised Code may provide up to seventy-five per cent459
of the value of an agricultural easement as determined by a460
general real estate appraiser who is certified under Chapter 4763.461
of the Revised Code. Not less than twenty-five per cent of the462
value of the agricultural easement shall be provided by the463
recipient of the matching grant or donated by the person who is464
transferring the easement to the grant recipient. The amount of465
such a matching grant used for the purchase of a single466
agricultural easement shall not exceed one million dollars.467

       (E) For any agricultural easement purchased with a matching468
grant that consists in whole or in part of moneys from the clean469
Ohio agricultural easement fund, the director shall be named as a470
grantee on the instrument conveying the easement, as shall the471
municipal corporation, county, township, or charitable472
organization that receives the grant.473

       (F)(1) The director shall monitor and evaluate the474
effectiveness and efficiency of the agricultural easement program475
as a farmland preservation tool. On or before July 1, 1999, and476
the first day of July of each year thereafter, the director shall477
prepare and submit a report to the chairpersons of the standing478
committees of the senate and the house of representatives that479
consider legislation regarding agriculture. The report shall480
consider and address the following criteria to determine the481
program's effectiveness:482

       (a) The number of agricultural easements purchased during483
the preceding year;484

       (b) The location of those easements;485

       (c) The number of acres of land preserved for agricultural486
use;487

       (d) The amount of money used by a municipal corporation,488
township, or county from its general fund or special fund to489
purchase the agricultural easements;490

       (e) The number of state matching grants given to purchase491
the agricultural easements;492

       (f) The amount of state matching grant moneys used to493
purchase the agricultural easements.494

       (2) The report also shall consider and include, at a495
minimum, the following information for each county to determine496
the program's efficiency:497

       (a) The total number of acres in the county;498

       (b) The total number of acres in current agricultural use;499

       (c) The total number of acres preserved for agricultural use500
in the preceding year;501

       (d) The average cost, per acre, of land preserved for502
agricultural use in the preceding year.503

       Sec. 5301.691.  (A)(1) Subject to divisions (A)(2) and (E)504
of this section, the director of agriculture, with moneys credited505
to the agricultural easement purchase fund created in section506
901.21 of the Revised Code, may purchase agricultural easements in507
the name of the state.508

       (2) Not less than thirty days prior to the acquisition of an509
agricultural easement under division (A)(1) of this section or the510
extinguishment of such an easement purchased under that division,511
the director shall provide written notice of the intention to do512
so to the board of county commissioners of the county in which the513
land that is or is proposed to be subject to the easement or514
extinguishment is located, and either to the legislative authority515
of the municipal corporation in which the land is located, if it516
is located in an incorporated area, or to the board of township517
trustees of the township in which the land is located, if it is518
located in an unincorporated area. If, within thirty days after519
the director provides the notice, the board of county520
commissioners, legislative authority, or board of township521
trustees requests an informational meeting with the director522
regarding the proposed acquisition or extinguishment, the director523
shall meet with the legislative authority or board to respond to524
the board's or authority's questions and concerns. If a meeting525
is timely requested under division (A)(2) of this section, the526
director shall not undertake the proposed acquisition or527
extinguishment until after the meeting has been concluded.528

       The director, upon the director's own initiative and prior to529
the purchase of an agricultural easement under division (A)(1) of530
this section or the extinguishment of such an easement, may hold531
an informational meeting with the board of county commissioners532
and the legislative authority of the municipal corporation or533
board of township trustees in which land that would be affected by534
the proposed acquisition or extinguishment is located, to respond535
to any questions and concerns of the board or authority regarding536
the proposed acquisition or extinguishment.537

       (B)(1) Subject to division (E) of this section, the538
legislative authority of a municipal corporation, board of county539
commissioners of a county, or board of trustees of a township,540
with moneys in the political subdivision's general fund not541
required by law or charter to be used for other specified purposes542
or with moneys in a special fund of the political subdivision to543
be used for the purchase of agricultural easements, may purchase544
agricultural easements in the name of the municipal corporation,545
county, or township.546

       (2) Subject to division (E) of this section, the legislative547
authority of a municipal corporation, board of county548
commissioners of a county, or board of township trustees of a549
township may acquire agricultural easements by gift, devise, or550
bequest. Any terms may be included in an agricultural easement so551
acquired that are necessary or appropriate to preserve on behalf552
of the grantor of the easement the favorable tax consequences of553
the gift, devise, or bequest under the "Internal Revenue Act of554
1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.555

       (C)(1) The term of an agricultural easement purchased wholly556
or in part with money from the agricultural easement purchase fund557
shall be perpetual and shall run with the land.558

       (2) The term of an agricultural easement purchased by such a559
legislative authority or board without the use of any money from560
the agricultural easement purchase fund may be perpetual or for a561
specified period. The agricultural easement shall run with the562
land. The instrument conveying an agricultural easement for a563
specified period shall include provisions specifying, at a564
minimum, all of the following:565

       (a) The consideration to be paid for the easement and manner566
of payment;567

       (b) Whether the easement is renewable and, if so, procedures568
for its renewal;569

       (c) The circumstances under which the easement may be570
extinguished;571

       (d) The method for determining the amount of money, if any,572
due the holder of the easement upon extinguishment and for payment573
of that amount to the holder.574

       (D)(1) The director and each legislative authority of a575
municipal corporation, board of county commissioners, or board of576
township trustees, upon acquiring an agricultural easement by577
purchase, gift, devise, or bequest under this section or section578
901.21 of the Revised Code, shall name an appropriate579
administrative officer, department, or division to supervise and580
enforce the easement. A legislative authority or board may enter581
into a contract with the board of park commissioners of a park582
district established under Chapter 1545. of the Revised Code, the583
board of park commissioners of a township park district584
established under section 511.18 of the Revised Code, or the board585
of supervisors of a soil and water conservation district586
established under Chapter 1515. of the Revised Code having587
territorial jurisdiction within the municipal corporation, county,588
or township, or with a charitable organization described in589
division (B) of section 5301.69 of the Revised Code, to supervise590
on behalf of the legislative authority or board an agricultural591
easement so acquired. The contract may be entered into on such592
terms as are agreeable to the parties and shall specify or593
prescribe a method for determining the amounts of any payments to594
be made by the legislative authority or board of county595
commissioners or township trustees for the performance of the596
contract.597

       (2) With respect to an agricultural easement purchased with598
a matching grant that is made under division (D) of section 901.22599
of the Revised Code and that consists in whole or in part of600
moneys from the clean Ohio agricultural easement fund created in601
section 901.21 of the Revised Code, the recipient of the matching602
grant shall make an annual monitoring visit to the land that is603
the subject of the easement. The purpose of the visit is to604
ensure that no development that is prohibited by the terms of the605
easement has occurred or is occurring. In accordance with rules606
adopted under division (A)(1)(d) of section 901.22 of the Revised607
Code, the grant recipient shall prepare a written annual608
monitoring report and submit it to the office of farmland609
preservation in the department of agriculture. If necessary to610
enforce the terms of the easement, the grant recipient shall take611
corrective action in accordance with those rules. The director may612
agree to share these monitoring and enforcement responsibilities613
with the grant recipient.614

       (E) The director; a municipal corporation, county, or615
township; or a charitable organization described in division (B)616
of section 5301.69 of the Revised Code, may acquire agricultural617
easements by purchase, gift, devise, or bequest only on land that618
is valued for purposes of real property taxation at its current619
value for agricultural use under section 5713.31 of the Revised620
Code or that constitutes a homestead when the easement is granted.621

       (F) An agricultural easement acquired by the director under622
division (A) of this section may be extinguished if an unexpected623
change in the conditions of or surrounding the land that is624
subject to the easement makes impossible or impractical the625
continued use of the land for the purposes described in the626
agricultural easement, or if the requirements of the easement are627
extinguished by judicial proceedings. Upon the sale, exchange, or628
involuntary conversion of the land subject to the easement, the629
director shall be paid an amount of money that is at least equal630
to the proportionate value of the easement compared to the total631
value of the land at the time the easement was acquired. Moneys632
so received shall be credited to the agricultural easement633
purchase fund.634

       An agricultural easement acquired by a municipal corporation,635
county, or township under division (B) of this section may be636
extinguished under the circumstances prescribed, and in accordance637
with the terms and conditions set forth, in the instrument638
conveying the agricultural easement. An agricultural easement639
acquired by a charitable organization described in division (B) of640
section 5301.69 of the Revised Code may be extinguished under the641
circumstances prescribed, and in accordance with the terms and642
conditions set forth, in the instrument conveying the agricultural643
easement.644

       Any instrument extinguishing an agricultural easement shall645
be executed and recorded in the same manner as other instruments646
conveying or terminating interests in real property.647

       (G) Promptly after the recording and indexing of an648
instrument conveying an agricultural easement to any person or to649
a municipal corporation, county, or township or of an instrument650
extinguishing an agricultural easement held by any person or such651
a political subdivision, the county recorder shall mail, by652
regular mail, a photocopy of the instrument to the office of653
farmland preservation in the department of agriculture. The654
photocopy shall be accompanied by an invoice for the applicable655
fee established in section 317.32 of the Revised Code. Promptly656
after receiving the photocopy and invoice, the office of farmland657
preservation shall remit the fee to the county recorder.658

       (H) The director, the legislative authority of a municipal659
corporation, a board of county commissioners, or a board of660
township trustees may receive and expend grants from any public or661
private source for the purpose of purchasing agricultural662
easements and supervising and enforcing them.663

       Section 2. That existing sections 122.657, 122.658, 164.27,664
901.22, and 5301.691 of the Revised Code are hereby repealed.665

       Section 3. That Sections 6 and 7 of Am. Sub. H.B. 3 of the666
124th General Assembly be amended to read as follows:667

       "       Sec. 6.  All items in this section are hereby appropriated668
as designated out of any moneys in the state treasury to the669
credit of the Clean Ohio Trail Fund (Fund 058061). The670
appropriations made in this act are in addition to any other671
capital appropriations made for the 2000-2002 biennium.672

DNR DEPARTMENT OF NATURAL RESOURCES
673

Clean Ohio Trail Fund674

058 061 CAP-014 Clean Ohio Trail $ 6,250,000 675
TOTAL 058 061 Clean Ohio Trail Fund ` $ 6,250,000 676
TOTAL ALL BUDGET FUND GROUPS $ 6,250,000 677

       CLEAN OHIO TRAIL678

       The foregoing appropriation item CAP-014, Clean Ohio Trail,679
shall be used in accordance with section 1519.05 of the Revised680
Code. The Director of the Department of Natural Resources may681
certify to the Director of Budget and Management that a need682
exists to appropriate investment earnings to be used in accordance683
with section 1519.05 of the Revised Code. If the Director of684
Budget and Management determines pursuant to section 1519.05 of685
the Revised Code that investment earnings are available to support686
additional appropriations, such amounts are hereby appropriated.687

       Within the limits set forth in this act, the Director of688
Budget and Management shall establish accounts indicating source689
and amount of funds for each appropriation made in this act, and690
shall determine the form and manner in which appropriation691
accounts shall be maintained. Expenditures from appropriations692
contained in this act shall be accounted for as though made in Am.693
Sub. H.B. 640 of the 123rd General Assembly.694

       The appropriations made in this act are subject to all695
provisions of Am. Sub. H.B. 640 of the 123rd General Assembly that696
are generally applicable to such appropriations.697

       Sec. 7.  All items in this section are hereby appropriated as698
designated out of any moneys in the state treasury to the credit699
of the Clean Ohio Trail Fund (Fund 058061). For all700
appropriations made in this act, those in the first column are for701
fiscal year 2002 and those in the second column are for fiscal702
year 2003. The appropriations made in this act are in addition to703
any other appropriations made for the 2001-2003 biennium.704

DNR DEPARTMENT OF NATURAL RESOURCES
705

Clean Ohio Trail Fund706

058 061 725-405 Clean Ohio - Operating $ 150,000 $ 155,000 707
TOTAL 058 061 Clean Ohio Trail Fund $ 150,000 $ 155,000 708
TOTAL ALL BUDGET FUND GROUPS $ 150,000 $ 155,000 709

       CLEAN OHIO - OPERATING710

       The foregoing appropriations item 725-405, Clean Ohio -711
Operating, shall be used by the Ohio Department of Natural712
Resources in administering section 1519.05 of the Revised Code.713

       Within the limits set forth in this act, the Director of714
Budget and Management shall establish accounts indicating source715
and amount of funds for each appropriation made in this act, and716
shall determine the form and manner in which appropriation717
accounts shall be maintained. Expenditures from appropriations718
contained in this act shall be accounted for as though made in Am.719
Sub. H.B. 94 of the 124th General Assembly.720

       The appropriations made in this act are subject to all721
provisions of Am. Sub. H.B. 94 of the 124th General Assembly that722
are generally applicable to such appropriations."723

       Section 4. That existing Sections 6 and 7 of Am. Sub. H.B. 3724
of the 124th General Assembly are hereby repealed.725