REPRESENTATIVE Martin

To amend sections 5709.62, 5709.63, and 5709.631 of

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the Revised Code and to amend Sections 38 and

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38.20 of Am. Sub. H.B. 95 of the 125th General

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Assembly to increase from 10 to 15 the number of

4

years enterprise zones or urban jobs and

5

enterprise zone agreements may exempt property

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from taxation, subject to school board approval;

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to create the Job Development Initiatives Fund and

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transfer up to $25.8 million of unclaimed funds to

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it; and to make appropriations.

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

Section 1. That sections 5709.62, 5709.63, and 5709.631 of	11
the Revised Code be amended to read as follows:	12

Sec. 5709.62.  (A) In any municipal corporation that is	13
defined by the United States office of management and budget as a	14
central city of a metropolitan statistical area, or in a city	15
designated as an urban cluster in a rural statistical area, the	16
legislative authority of the municipal corporation may designate	17
one or more areas within its municipal corporation as proposed	18
enterprise zones. Upon designating an area, the legislative	19
authority shall petition the director of development for	20
certification of the area as having the characteristics set forth	21
in division (A)(1) of section 5709.61 of the Revised Code as	22
amended by Substitute Senate Bill No. 19 of the 120th general	23
assembly. Except as otherwise provided in division (E) of this	24
section, on and after July 1, 1994, legislative authorities shall	25
not enter into agreements under this section unless the	26
legislative authority has petitioned the director and the director	27
has certified the zone under this section as amended by that act;	28
however, all agreements entered into under this section as it	29
existed prior to July 1, 1994, and the incentives granted under	30
those agreements shall remain in effect for the period agreed to	31
under those agreements. Within sixty days after receiving such a	32
petition, the director shall determine whether the area has the	33
characteristics set forth in division (A)(1) of section 5709.61 of	34
the Revised Code, and shall forward the findings to the	35
legislative authority of the municipal corporation. If the	36
director certifies the area as having those characteristics, and	37
thereby certifies it as a zone, the legislative authority may	38
enter into an agreement with an enterprise under division (C) of	39
this section.	40

(B) Any enterprise that wishes to enter into an agreement	41
with a municipal corporation under division (C) of this section	42
shall submit a proposal to the legislative authority of the	43
municipal corporation on a form prescribed by the director of	44
development, together with the application fee established under	45
section 5709.68 of the Revised Code. The form shall require the	46
following information:	47

(1) An estimate of the number of new employees whom the	48
enterprise intends to hire, or of the number of employees whom the	49
enterprise intends to retain, within the zone at a facility that	50
is a project site, and an estimate of the amount of payroll of the	51
enterprise attributable to these employees;	52

(2) An estimate of the amount to be invested by the	53
enterprise to establish, expand, renovate, or occupy a facility,	54
including investment in new buildings, additions or improvements	55
to existing buildings, machinery, equipment, furniture, fixtures,	56
and inventory;	57

(3) A listing of the enterprise's current investment, if any,	58
in a facility as of the date of the proposal's submission.	59

The enterprise shall review and update the listings required	60
under this division to reflect material changes, and any agreement	61
entered into under division (C) of this section shall set forth	62
final estimates and listings as of the time the agreement is	63
entered into. The legislative authority may, on a separate form	64
and at any time, require any additional information necessary to	65
determine whether an enterprise is in compliance with an agreement	66
and to collect the information required to be reported under	67
section 5709.68 of the Revised Code.	68

(C) Upon receipt and investigation of a proposal under	69
division (B) of this section, if the legislative authority finds	70
that the enterprise submitting the proposal is qualified by	71
financial responsibility and business experience to create and	72
preserve employment opportunities in the zone and improve the	73
economic climate of the municipal corporation, the legislative	74
authority, on or before October 15, 2009, may do one of the	75
following:	76

(1) Enter into an agreement with the enterprise under which	77
the enterprise agrees to establish, expand, renovate, or occupy a	78
facility and hire new employees, or preserve employment	79
opportunities for existing employees, in return for one or more of	80
the following incentives:	81

(a) Exemption for a specified number of years, not to exceed	82
tenfifteen, of a specified portion, up to seventy-five per cent,	83
of the assessed value of tangible personal property first used in	84
business at the project site as a result of the agreement. If an	85
exemption for inventory is specifically granted in the agreement	86
pursuant to this division, the exemption applies to inventory	87
required to be listed pursuant to sections 5711.15 and 5711.16 of	88
the Revised Code, except that, in the instance of an expansion or	89
other situations in which an enterprise was in business at the	90
facility prior to the establishment of the zone, the inventory	91
that is exempt is that amount or value of inventory in excess of	92
the amount or value of inventory required to be listed in the	93
personal property tax return of the enterprise in the return for	94
the tax year in which the agreement is entered into.	95

(b) Exemption for a specified number of years, not to exceed	96
tenfifteen, of a specified portion, up to seventy-five per cent,	97
of the increase in the assessed valuation of real property	98
constituting the project site subsequent to formal approval of the	99
agreement by the legislative authority;	100

(c) Provision for a specified number of years, not to exceed	101
tenfifteen, of any optional services or assistance that the	102
municipal corporation is authorized to provide with regard to the	103
project site.	104

(2) Enter into an agreement under which the enterprise agrees	105
to remediate an environmentally contaminated facility, to spend an	106
amount equal to at least two hundred fifty per cent of the true	107
value in money of the real property of the facility prior to	108
remediation as determined for the purposes of property taxation to	109
establish, expand, renovate, or occupy the remediated facility,	110
and to hire new employees or preserve employment opportunities for	111
existing employees at the remediated facility, in return for one	112
or more of the following incentives:	113

(a) Exemption for a specified number of years, not to exceed	114
tenfifteen, of a specified portion, not to exceed fifty per cent,	115
of the assessed valuation of the real property of the facility	116
prior to remediation;	117

(b) Exemption for a specified number of years, not to exceed	118
tenfifteen, of a specified portion, not to exceed one hundred per	119
cent, of the increase in the assessed valuation of the real	120
property of the facility during or after remediation;	121

(c) The incentive under division (C)(1)(a) of this section,	122
except that the percentage of the assessed value of such property	123
exempted from taxation shall not exceed one hundred per cent;	124

(d) The incentive under division (C)(1)(c) of this section.

125

(3) Enter into an agreement with an enterprise that plans to	126
purchase and operate a large manufacturing facility that has	127
ceased operation or announced its intention to cease operation, in	128
return for exemption for a specified number of years, not to	129
exceed tenfifteen, of a specified portion, up to one hundred per	130
cent, of the assessed value of tangible personal property used in	131
business at the project site as a result of the agreement, or of	132
the assessed valuation of real property constituting the project	133
site, or both.	134

(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this	135
section, the portion of the assessed value of tangible personal	136
property or of the increase in the assessed valuation of real	137
property exempted from taxation under those divisions may exceed	138
seventy-five per cent in any year for which that portion is	139
exempted if the average percentage exempted for all years in which	140
the agreement is in effect does not exceed sixty per cent, or if	141
the board of education of the city, local, or exempted village	142
school district within the territory of which the property is or	143
will be located approves a percentage in excess of seventy-five	144
per cent.	145

(2) Notwithstanding any provision of the Revised Code to the	146
contrary, the exemptions described in divisions (C)(1)(a), (b),	147
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may	148
be for up to fifteen years if the board of education of the city,	149
local, or exempted village school district within the territory in	150
of which the property is or will be located approves a number of	151
years in excess of ten, but only if the project that is part of	152
the agreement includes a fixed asset investment of at least one	153
hundred million dollars or the director of development determines	154
there are extraordinary circumstances, and only if the project	155
involves the enrichment and commercialization of uranium or	156
uranium products or the research and development activities	157
related to that enrichment or commercialization.	158

(3) For the purpose of obtaining the approval of a city,	159
local, or exempted village school district under division (D)(1)	160
or (2) of this section, the legislative authority shall deliver to	161
the board of education a notice not later than forty-five days	162
prior to approving the agreement, excluding Saturdays, Sundays,	163
and legal holidays as defined in section 1.14 of the Revised Code.	164
The notice shall state the percentage to be exempted, an estimate	165
of the true value of the property to be exempted, and the number	166
of years the property is to be exempted. The board of education,	167
by resolution adopted by a majority of the board, shall approve or	168
disapprove the agreement and certify a copy of the resolution to	169
the legislative authority not later than fourteen days prior to	170
the date stipulated by the legislative authority as the date upon	171
which approval of the agreement is to be formally considered by	172
the legislative authority. The board of education may include in	173
the resolution conditions under which the board would approve the	174
agreement, including the execution of an agreement to compensate	175
the school district under division (B) of section 5709.82 of the	176
Revised Code. The legislative authority may approve the agreement	177
at any time after the board of education certifies its resolution	178
approving the agreement to the legislative authority, or, if the	179
board approves the agreement conditionally, at any time after the	180
conditions are agreed to by the board and the legislative	181
authority.	182

If a board of education has adopted a resolution waiving its	183
right to approve agreements and the resolution remains in effect,	184
approval of an agreement by the board is not required under this	185
division. If a board of education has adopted a resolution	186
allowing a legislative authority to deliver the notice required	187
under this division fewer than forty-five business days prior to	188
the legislative authority's approval of the agreement, the	189
legislative authority shall deliver the notice to the board not	190
later than the number of days prior to such approval as prescribed	191
by the board in its resolution. If a board of education adopts a	192
resolution waiving its right to approve agreements or shortening	193
the notification period, the board shall certify a copy of the	194
resolution to the legislative authority. If the board of education	195
rescinds such a resolution, it shall certify notice of the	196
rescission to the legislative authority.	197

(4) The legislative authority shall comply with section	198
5709.83 of the Revised Code unless the board of education has	199
adopted a resolution under that section waiving its right to	200
receive such notice.	201

(E) This division applies to zones certified by the director	202
of development under this section prior to July 22, 1994.	203

On or before October 15, 2009, the legislative authority that	204
designated a zone to which this division applies may enter into an	205
agreement with an enterprise if the legislative authority makes	206
the finding required under that division and determinesfinds that	207
the enterprise satisfies one of the criteria described in	208
divisions (E)(1) to (5) of this section:	209

(1) The enterprise currently has no operations in this state	210
and, subject to approval of the agreement, intends to establish	211
operations in the zone;	212

(2) The enterprise currently has operations in this state	213
and, subject to approval of the agreement, intends to establish	214
operations at a new location in the zone that would not result in	215
a reduction in the number of employee positions at any of the	216
enterprise's other locations in this state;	217

(3) The enterprise, subject to approval of the agreement,	218
intends to relocate operations, currently located in another	219
state, to the zone;	220

(4) The enterprise, subject to approval of the agreement,	221
intends to expand operations at an existing site in the zone that	222
the enterprise currently operates;	223

(5) The enterprise, subject to approval of the agreement,	224
intends to relocate operations, currently located in this state,	225
to the zone, and the director of development has issued a waiver	226
for the enterprise under division (B) of section 5709.633 of the	227
Revised Code.	228

The agreement shall require the enterprise to agree to	229
establish, expand, renovate, or occupy a facility in the zone and	230
hire new employees, or preserve employment opportunities for	231
existing employees, in return for one or more of the incentives	232
described in division (C) of this section.	233

(F) All agreements entered into under this section shall be	234
in the form prescribed under section 5709.631 of the Revised Code.	235
After an agreement is entered into under this divisionsection, if	236
the legislative authority revokes its designation of a zone, or if	237
the director of development revokes thea zone's certification,	238
any entitlements granted under the agreement shall continue for	239
the number of years specified in the agreement.	240

(G) Except as otherwise provided in this division, an	241
agreement entered into under this section shall require that the	242
enterprise pay an annual fee equal to the greater of one per cent	243
of the dollar value of incentives offered under the agreement or	244
five hundred dollars; provided, however, that if the value of the	245
incentives exceeds two hundred fifty thousand dollars, the fee	246
shall not exceed two thousand five hundred dollars. The fee shall	247
be payable to the legislative authority once per year for each	248
year the agreement is effective on the days and in the form	249
specified in the agreement. Fees paid shall be deposited in a	250
special fund created for such purpose by the legislative authority	251
and shall be used by the legislative authority exclusively for the	252
purpose of complying with section 5709.68 of the Revised Code and	253
by the tax incentive review council created under section 5709.85	254
of the Revised Code exclusively for the purposes of performing the	255
duties prescribed under that section. The legislative authority	256
may waive or reduce the amount of the fee charged against an	257
enterprise, but such a waiver or reduction does not affect the	258
obligations of the legislative authority or the tax incentive	259
review council to comply with section 5709.68 or 5709.85 of the	260
Revised Code.	261

(H) When an agreement is entered into pursuant to this	262
section, the legislative authority authorizing the agreement shall	263
forward a copy of the agreement to the director of development and	264
to the tax commissioner within fifteen days after the agreement is	265
entered into. If any agreement includes terms not provided for in	266
section 5709.631 of the Revised Code affecting the revenue of a	267
city, local, or exempted village school district or causing	268
revenue to be foregone by the district, including any compensation	269
to be paid to the school district pursuant to section 5709.82 of	270
the Revised Code, those terms also shall be forwarded in writing	271
to the director of development along with the copy of the	272
agreement forwarded under this division.	273

(I) After an agreement is entered into, the enterprise shall	274
file with each personal property tax return required to be filed,	275
or annual report required to be filed under section 5727.08 of the	276
Revised Code, while the agreement is in effect, an informational	277
return, on a form prescribed by the tax commissioner for that	278
purpose, setting forth separately the property, and related costs	279
and values, exempted from taxation under the agreement.	280

(J) Enterprises may agree to give preference to residents of	281
the zone within which the agreement applies relative to residents	282
of this state who do not reside in the zone when hiring new	283
employees under the agreement.	284

(K) An agreement entered into under this section may include	285
a provision requiring the enterprise to create one or more	286
temporary internship positions for students enrolled in a course	287
of study at a school or other educational institution in the	288
vicinity, and to create a scholarship or provide another form of	289
educational financial assistance for students holding such a	290
position in exchange for the student's commitment to work for the	291
enterprise at the completion of the internship.	292

(L) The tax commissioner's authority in determining the	293
accuracy of any exemption granted by an agreement entered into	294
under this section is limited to divisions (C)(1)(a) and (b),	295
(C)(2)(a), (b), and (c), (C)(3), (D), and (I) of this section and	296
divisions (B)(1) to (10) of section 5709.631 of the Revised Code	297
and, as authorized by law, to enforcing any modification to, or	298
revocation of, that agreement by the legislative authority of a	299
municipal corporation or the director of development.	300

Sec. 5709.63.  (A) With the consent of the legislative	301
authority of each affected municipal corporation or of a board of	302
township trustees, a board of county commissioners may, in the	303
manner set forth in section 5709.62 of the Revised Code, designate	304
one or more areas in one or more municipal corporations or in	305
unincorporated areas of the county as proposed enterprise zones. A	306
board of county commissioners may designate no more than one area	307
within a township, or within adjacent townships, as a proposed	308
enterprise zone. The board shall petition the director of	309
development for certification of the area as having the	310
characteristics set forth in division (A)(1) or (2) of section	311
5709.61 of the Revised Code as amended by Substitute Senate Bill	312
No. 19 of the 120th general assembly. Except as otherwise provided	313
in division (D) of this section, on and after July 1, 1994, boards	314
of county commissioners shall not enter into agreements under this	315
section unless the board has petitioned the director and the	316
director has certified the zone under this section as amended by	317
that act; however, all agreements entered into under this section	318
as it existed prior to July 1, 1994, and the incentives granted	319
under those agreements shall remain in effect for the period	320
agreed to under those agreements. The director shall make the	321
determination in the manner provided under section 5709.62 of the	322
Revised Code. Any	323

Any enterprise wishing to enter into an agreement with the	324
board under division (B) or (D) of this section shall submit a	325
proposal to the board on the form and accompanied by the	326
application fee prescribed under division (B) of section 5709.62	327
of the Revised Code. The enterprise shall review and update the	328
estimates and listings required by the form in the manner required	329
under that division. The board may, on a separate form and at any	330
time, require any additional information necessary to determine	331
whether an enterprise is in compliance with an agreement and to	332
collect the information required to be reported under section	333
5709.68 of the Revised Code.	334

(B) If the board of county commissioners finds that an	335
enterprise submitting a proposal is qualified by financial	336
responsibility and business experience to create and preserve	337
employment opportunities in the zone and to improve the economic	338
climate of the municipal corporation or municipal corporations or	339
the unincorporated areas in which the zone is located and to which	340
the proposal applies, the board, on or before October 15, 2009,	341
and with the consent of the legislative authority of each affected	342
municipal corporation or of the board of township trustees may do	343
either of the following:	344

(1) Enter into an agreement with the enterprise under which	345
the enterprise agrees to establish, expand, renovate, or occupy a	346
facility in the zone and hire new employees, or preserve	347
employment opportunities for existing employees, in return for the	348
following incentives:	349

(a) When the facility is located in a municipal corporation,	350
the board may enter into an agreement for one or more of the	351
incentives provided in division (C) of section 5709.62 of the	352
Revised Code, subject to division (D) of that section;	353

(b) When the facility is located in an unincorporated area,	354
the board may enter into an agreement for one or more of the	355
following incentives:	356

(i) Exemption for a specified number of years, not to exceed	357
tenfifteen, of a specified portion, up to sixty per cent, of the	358
assessed value of tangible personal property first used in	359
business at a project site as a result of the agreement. If an	360
exemption for inventory is specifically granted in the agreement	361
pursuant to this division, the exemption applies to inventory	362
required to be listed pursuant to sections 5711.15 and 5711.16 of	363
the Revised Code, except, in the instance of an expansion or other	364
situations in which an enterprise was in business at the facility	365
prior to the establishment of the zone, the inventory that is	366
exempt is that amount or value of inventory in excess of the	367
amount or value of inventory required to be listed in the personal	368
property tax return of the enterprise in the return for the tax	369
year in which the agreement is entered into.	370

(ii) Exemption for a specified number of years, not to exceed	371
tenfifteen, of a specified portion, up to sixty per cent, of the	372
increase in the assessed valuation of real property constituting	373
the project site subsequent to formal approval of the agreement by	374
the board;	375

(iii) Provision for a specified number of years, not to	376
exceed tenfifteen, of any optional services or assistance the	377
board is authorized to provide with regard to the project site;	378

(iv) The incentive described in division (C)(2) of section	379
5709.62 of the Revised Code.	380

(2) Enter into an agreement with an enterprise that plans to	381
purchase and operate a large manufacturing facility that has	382
ceased operation or has announced its intention to cease	383
operation, in return for exemption for a specified number of	384
years, not to exceed tenfifteen, of a specified portion, up to	385
one hundred per cent, of tangible personal property used in	386
business at the project site as a result of the agreement, or of	387
real property constituting the project site, or both.	388

(C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of	389
this section, the portion of the assessed value of tangible	390
personal property or of the increase in the assessed valuation of	391
real property exempted from taxation under those divisions may	392
exceed sixty per cent in any year for which that portion is	393
exempted if the average percentage exempted for all years in which	394
the agreement is in effect does not exceed fifty per cent, or if	395
the board of education of the city, local, or exempted village	396
school district within the territory of which the property is or	397
will be located approves a percentage in excess of sixty per cent.	398

(b) Notwithstanding any provision of the Revised Code to the	399
contrary, the exemptions described in divisions (B)(1)(b)(i),	400
(ii), (iii), and (iv) and (B)(2) of this section may be for up to	401
fifteen years if the board of education of the city, local, or	402
exempted village school district within the territory inof which	403
the property is or will be located approves a number of years in	404
excess of ten, but only if the project that is part of the	405
agreement includes a fixed asset investment of at least one	406
hundred million dollars or the director of development determines	407
there are extraordinary circumstances, and only if the project	408
involves the enrichment and commercialization of uranium or	409
uranium products or the research and development activities	410
related to that enrichment or commercialization.	411

(c) For the purpose of obtaining the approval of a city,	412
local, or exempted village school district under division	413
(C)(1)(a) or (b) of this section, the board of county	414
commissioners shall deliver to the board of education a notice not	415
later than forty-five days prior to approving the agreement,	416
excluding Saturdays, Sundays, and legal holidays as defined in	417
section 1.14 of the Revised Code. The notice shall state the	418
percentage to be exempted, an estimate of the true value of the	419
property to be exempted, and the number of years the property is	420
to be exempted. The board of education, by resolution adopted by a	421
majority of the board, shall approve or disapprove the agreement	422
and certify a copy of the resolution to the board of county	423
commissioners not later than fourteen days prior to the date	424
stipulated by the board of county commissioners as the date upon	425
which approval of the agreement is to be formally considered by	426
the board of county commissioners. The board of education may	427
include in the resolution conditions under which the board would	428
approve the agreement, including the execution of an agreement to	429
compensate the school district under division (B) of section	430
5709.82 of the Revised Code. The board of county commissioners may	431
approve the agreement at any time after the board of education	432
certifies its resolution approving the agreement to the board of	433
county commissioners, or, if the board of education approves the	434
agreement conditionally, at any time after the conditions are	435
agreed to by the board of education and the board of county	436
commissioners.	437

If a board of education has adopted a resolution waiving its	438
right to approve agreements and the resolution remains in effect,	439
approval of an agreement by the board of education is not required	440
under division (C) of this section. If a board of education has	441
adopted a resolution allowing a board of county commissioners to	442
deliver the notice required under this division fewer than	443
forty-five business days prior to approval of the agreement by the	444
board of county commissioners, the board of county commissioners	445
shall deliver the notice to the board of education not later than	446
the number of days prior to such approval as prescribed by the	447
board of education in its resolution. If a board of education	448
adopts a resolution waiving its right to approve agreements or	449
shortening the notification period, the board of education shall	450
certify a copy of the resolution to the board of county	451
commissioners. If the board of education rescinds such a	452
resolution, it shall certify notice of the rescission to the board	453
of county commissioners.	454

(2) The board of county commissioners shall comply with	455
section 5709.83 of the Revised Code unless the board of education	456
has adopted a resolution under that section waiving its right to	457
receive such notice.	458

(D) This division applies to zones certified by the director	459
of development under this section prior to July 22, 1994.	460

On or before October 15, 2009, and with the consent of the	461
legislative authority of each affected municipal corporation or	462
board of township trustees of each affected township, the board of	463
county commissioners that designated a zone to which this division	464
applies may enter into an agreement with an enterprise if the	465
board makes the finding required under that division and	466
determinesfinds that the enterprise satisfies one of the criteria	467
described in divisions (D)(1) to (5) of this section:	468

(1) The enterprise currently has no operations in this state	469
and, subject to approval of the agreement, intends to establish	470
operations in the zone;	471

(2) The enterprise currently has operations in this state	472
and, subject to approval of the agreement, intends to establish	473
operations at a new location in the zone that would not result in	474
a reduction in the number of employee positions at any of the	475
enterprise's other locations in this state;	476

(3) The enterprise, subject to approval of the agreement,	477
intends to relocate operations, currently located in another	478
state, to the zone;	479

(4) The enterprise, subject to approval of the agreement,	480
intends to expand operations at an existing site in the zone that	481
the enterprise currently operates;	482

(5) The enterprise, subject to approval of the agreement,	483
intends to relocate operations, currently located in this state,	484
to the zone, and the director of development has issued a waiver	485
for the enterprise under division (B) of section 5709.633 of the	486
Revised Code.	487

The agreement shall require the enterprise to agree to	488
establish, expand, renovate, or occupy a facility in the zone and	489
hire new employees, or preserve employment opportunities for	490
existing employees, in return for one or more of the incentives	491
described in division (B) of this section.	492

(E) All agreements entered into under this section shall be	493
in the form prescribed under section 5709.631 of the Revised Code.	494
After an agreement under this section is entered into, if the	495
board of county commissioners revokes its designation of thea	496
zone, or if the director of development revokes thea zone's	497
certification, any entitlements granted under the agreement shall	498
continue for the number of years specified in the agreement.	499

(F) Except as otherwise provided in this paragraphdivision,	500
an agreement entered into under this section shall require that	501
the enterprise pay an annual fee equal to the greater of one per	502
cent of the dollar value of incentives offered under the agreement	503
or five hundred dollars; provided, however, that if the value of	504
the incentives exceeds two hundred fifty thousand dollars, the fee	505
shall not exceed two thousand five hundred dollars. The fee shall	506
be payable to the board of county commissioners once per year for	507
each year the agreement is effective on the days and in the form	508
specified in the agreement. Fees paid shall be deposited in a	509
special fund created for such purpose by the board and shall be	510
used by the board exclusively for the purpose of complying with	511
section 5709.68 of the Revised Code and by the tax incentive	512
review council created under section 5709.85 of the Revised Code	513
exclusively for the purposes of performing the duties prescribed	514
under that section. The board may waive or reduce the amount of	515
the fee charged against an enterprise, but such waiver or	516
reduction does not affect the obligations of the board or the tax	517
incentive review council to comply with section 5709.68 or 5709.85	518
of the Revised Code, respectively.	519

(G) With the approval of the legislative authority of a	520
municipal corporation or the board of township trustees of a	521
township in which a zone is designated under division (A) of this	522
section, the board of county commissioners may delegate to that	523
legislative authority or board any powers and duties of the board	524
of county commissioners to negotiate and administer agreements	525
with regard to that zone under this section.	526

(H) When an agreement is entered into pursuant to this	527
section, the legislative authorityboard of county commissioners	528
authorizing the agreement or the legislative authority or board of	529
township trustees that negotiates and administers the agreement	530
shall forward a copy of the agreement to the director of	531
development and to the tax commissioner within fifteen days after	532
the agreement is entered into. If any agreement includes terms not	533
provided for in section 5709.631 of the Revised Code affecting the	534
revenue of a city, local, or exempted village school district or	535
causing revenue to be foregone by the district, including any	536
compensation to be paid to the school district pursuant to section	537
5709.82 of the Revised Code, those terms also shall be forwarded	538
in writing to the director of development along with the copy of	539
the agreement forwarded under this division.	540

(I) After an agreement is entered into, the enterprise shall	541
file with each personal property tax return required to be filed,	542
or annual report that is required to be filed under section	543
5727.08 of the Revised Code, while the agreement is in effect, an	544
informational return, on a form prescribed by the tax commissioner	545
for that purpose, setting forth separately the property, and	546
related costs and values, exempted from taxation under the	547
agreement.	548

(J) Enterprises may agree to give preference to residents of	549
the zone within which the agreement applies relative to residents	550
of this state who do not reside in the zone when hiring new	551
employees under the agreement.	552

(K) An agreement entered into under this section may include	553
a provision requiring the enterprise to create one or more	554
temporary internship positions for students enrolled in a course	555
of study at a school or other educational institution in the	556
vicinity, and to create a scholarship or provide another form of	557
educational financial assistance for students holding such a	558
position in exchange for the student's commitment to work for the	559
enterprise at the completion of the internship.	560

(L) The tax commissioner's authority in determining the	561
accuracy of any exemption granted by an agreement entered into	562
under this section is limited to divisions (B)(1)(b)(i) and (ii),	563
(B)(2), (C), and (I) of this section, division (B)(1)(b)(iv) of	564
this section as it pertains to divisions (C)(2)(a), (b), and (c)	565
of section 5709.62 of the Revised Code, and divisions (B)(1) to	566
(10) of section 5709.631 of the Revised Code and, as authorized by	567
law, to enforcing any modification to, or revocation of, that	568
agreement by the board of county commissioners or the director of	569
development or, if the board's powers and duties are delegated	570
under division (G) of this section, by the legislative authority	571
of a municipal corporation or board of township trustees.	572

Sec. 5709.631.  Each agreement entered into under sections	573
5709.62, 5709.63, and 5709.632 of the Revised Code on or after	574
April 1, 1994, shall be in writing and shall include all of the	575
information and statements prescribed by this section. Agreements	576
may include terms not prescribed by this section, but such terms	577
shall in no way derogate from the information and statements	578
prescribed by this section.	579

(A) Each agreement shall include the following information:

580

(1) The names of all parties to the agreement;

581

(2) A description of the investments to be made by the	582
applicant enterprise or by another party at the facility whether	583
or not the investments are exempted from taxation, including	584
existing or new building size and cost thereof; the value of	585
machinery, equipment, furniture, and fixtures, including an	586
itemization of the value of machinery, equipment, furniture, and	587
fixtures used at another location in this state prior to the	588
agreement and relocated or to be relocated from that location to	589
the facility and the value of machinery, equipment, furniture, and	590
fixtures at the facility prior to the execution of the agreement	591
that will not be exempted from taxation; the value of inventory at	592
the facility, including an itemization of the value of inventory	593
held at another location in this state prior to the agreement and	594
relocated or to be relocated from that location to the facility,	595
and the value of inventory held at the facility prior to the	596
execution of the agreement that will not be exempted from	597
taxation;	598

(3) The scheduled starting and completion dates of	599
investments made in building, machinery, equipment, furniture,	600
fixtures, and inventory;	601

(4) Estimates of the number of employee positions to be	602
created each year of the agreement and of the number of employee	603
positions retained by the applicant enterprise due to the project,	604
itemized as to the number of full-time, part-time, permanent, and	605
temporary positions;	606

(5) Estimates of the dollar amount of payroll attributable to	607
the positions set forth in division (A)(4) of this section,	608
similarly itemized;	609

(6) The number of employee positions, if any, at the project	610
site and at any other location in the state at the time the	611
agreement is executed, itemized as to the number of full-time,	612
part-time, permanent, and temporary positions.	613

(B) Each agreement shall set forth the following information	614
and incorporate the following statements:	615

(1) A description of real property to be exempted from	616
taxation under the agreement, the percentage of the assessed	617
valuation of the real property exempted from taxation, and the	618
period for which the exemption is granted, accompanied by the	619
statement: "The exemption commences the first year for which the	620
real property would first be taxable were that property not	621
exempted from taxation. No exemption shall commence after	622
.......... (insert date) nor extend beyond .......... (insert	623
date)." The tax commissioner shall adopt rules prescribing the	624
form the description of such property shall assume to ensure that	625
the property to be exempted from taxation under the agreement is	626
distinguishable from property that is not to be exempted under	627
that agreement.	628

(2) A description of tangible personal property to be	629
exempted from taxation under the agreement, the percentage of the	630
assessed value of the tangible personal property exempted from	631
taxation, and the period for which the exemption is granted,	632
accompanied by the statement: "The minimum investment for tangible	633
personal property to qualify for the exemption is $..........	634
(insert dollar amount) to purchase machinery and equipment first	635
used in business at the facility as a result of the project,	636
$.......... (insert dollar amount) for furniture and fixtures and	637
other noninventory personal property first used in business at the	638
facility as a result of the project, and $.......... (insert	639
dollar amount) for new inventory. The maximum investment for	640
tangible personal property to qualify for the exemption is	641
$.......... (insert dollar amount) to purchase machinery and	642
equipment first used in business at the facility as a result of	643
the project, $.......... (insert dollar amount) for furniture and	644
fixtures and other noninventory personal property first used in	645
business at the facility as a result of the project, and	646
$.......... (insert dollar amount) for new inventory. The	647
exemption commences the first year for which the tangible personal	648
property would first be taxable were that property not exempted	649
from taxation. No exemption shall commence after tax return year	650
.......... (insert year) nor extend beyond tax return year	651
.......... (insert year). In no instance shall any tangible	652
personal property be exempted from taxation for more than ten	653
return years unless the project that is part of the agreement	654
involves the enrichment and commercialization of uranium or	655
uranium products or the research and development activities	656
related to that enrichment or commercialization, under division	657
(D)(2) of section 5709.62 or under division (C)(1)(b) of section	658
5709.63 of the Revised Code, the board of education approves	659
exemption for a number of years in excess of ten, in which case	660
the tangible personal property may be exempted from taxation for	661
up tothat number of years, not to exceed fifteen return years."	662
No exemption shall be allowed for any type of tangible personal	663
property if the total investment is less than the minimum dollar	664
amount specified for that type of property. If, for a type of	665
tangible personal property, there are no minimum or maximum	666
investment dollar amounts specified in the statement or the dollar	667
amounts are designated in the statement as not applicable, the	668
exemption shall apply to the total cost of that type of tangible	669
personal property first used in business at the facility as a	670
result of the project. The tax commissioner shall adopt rules	671
prescribing the form the description of such property shall assume	672
to ensure that the property to be exempted from taxation under the	673
agreement is distinguishable from property that is not to be	674
exempted under that agreement.	675

(3) ".......... (insert name of enterprise) shall pay such	676
real and tangible personal property taxes as are not exempted	677
under this agreement and are charged against such property and	678
shall file all tax reports and returns as required by law. If	679
.......... (insert name of enterprise) fails to pay such taxes or	680
file such returns and reports, all incentives granted under this	681
agreement are rescinded beginning with the year for which such	682
taxes are charged or such reports or returns are required to be	683
filed and thereafter."	684

(4) ".......... (insert name of enterprise) hereby certifies	685
that at the time this agreement is executed, .......... (insert	686
name of enterprise) does not owe any delinquent real or tangible	687
personal property taxes to any taxing authority of the State of	688
Ohio, and does not owe delinquent taxes for which ..........	689
(insert name of enterprise) is liable under Chapter 5727., 5733.,	690
5735., 5739., 5741., 5743., 5747., or 5753. of the Revised Code,	691
or, if such delinquent taxes are owed, .......... (insert name of	692
enterprise) currently is paying the delinquent taxes pursuant to a	693
delinquent tax contract enforceable by the State of Ohio or an	694
agent or instrumentality thereof, has filed a petition in	695
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has	696
been filed against .......... (insert name of enterprise). For the	697
purposes of the certification, delinquent taxes are taxes that	698
remain unpaid on the latest day prescribed for payment without	699
penalty under the chapter of the Revised Code governing payment of	700
those taxes."	701

(5) ".......... (insert name of municipal corporation or	702
county) shall perform such acts as are reasonably necessary or	703
appropriate to effect, claim, reserve, and maintain exemptions	704
from taxation granted under this agreement including, without	705
limitation, joining in the execution of all documentation and	706
providing any necessary certificates required in connection with	707
such exemptions."	708

(6) "If for any reason the enterprise zone designation	709
expires, the Director of the Ohio Department of Development	710
revokes certification of the zone, or .......... (insert name of	711
municipal corporation or county) revokes the designation of the	712
zone, entitlements granted under this agreement shall continue for	713
the number of years specified under this agreement, unless	714
.......... (insert name of enterprise) materially fails to fulfill	715
its obligations under this agreement and .......... (insert name	716
of municipal corporation or county) terminates or modifies the	717
exemptions from taxation granted under this agreement."	718

(7) "If .......... (insert name of enterprise) materially	719
fails to fulfill its obligations under this agreement, or if	720
.......... (insert name of municipal corporation or county)	721
determines that the certification as to delinquent taxes required	722
by this agreement is fraudulent, .......... (insert name of	723
municipal corporation or county) may terminate or modify the	724
exemptions from taxation granted under this agreement."	725

(8) ".......... (insert name of enterprise) shall provide to	726
the proper tax incentive review council any information reasonably	727
required by the council to evaluate the enterprise's compliance	728
with the agreement, including returns or annual reports filed	729
pursuant to section 5711.02 or 5727.08 of the Ohio Revised Code if	730
requested by the council."	731

(9) ".......... (insert name of enterprise) and ..........	732
(insert name of municipal corporation or county) acknowledge that	733
this agreement must be approved by formal action of the	734
legislative authority of .......... (insert name of municipal	735
corporation or county) as a condition for the agreement to take	736
effect. This agreement takes effect upon such approval."	737

(10) "This agreement is not transferable or assignable	738
without the express, written approval of .......... (insert name	739
of municipal corporation or county)."	740

(11) "Exemptions from taxation granted under this agreement	741
shall be revoked if it is determined that ............... (insert	742
name of enterprise), any successor enterprise, or any related	743
member (as those terms are defined in section 5709.61 of the Ohio	744
Revised Code) has violated the prohibition against entering into	745
this agreement under division (E) of section 3735.671 or section	746
5709.62, 5709.63, or 5709.632 of the Ohio Revised Code prior to	747
the time prescribed by that division or either of those sections."	748

The statement described in division (B)(7) of this section	749
may include the following statement, appended at the end of the	750
statement: "and may require the repayment of the amount of taxes	751
that would have been payable had the property not been exempted	752
from taxation under this agreement."	753

(C) If the director of development had to issue a waiver	754
under section 5709.633 of the Revised Code as a condition for the	755
agreement to be executed, the agreement shall include the	756
following statement:	757

"Continuation of this agreement is subject to the validity of	758
the circumstance upon which .......... (insert name of enterprise)	759
applied for, and the Director of the Ohio Department of	760
Development issued, the waiver pursuant to section 5709.633 of the	761
Ohio Revised Code. If, after formal approval of this agreement by	762
.......... (insert name of municipal corporation or county), the	763
Director or ............. (insert name of municipal corporation or	764
county) discovers that such a circumstance did not exist,	765
........... (insert name of enterprise) shall be deemed to have	766
materially failed to comply with this agreement."	767

If the director issued a waiver on the basis of the	768
circumstance described in division (B)(3) of section 5709.633 of	769
the Ohio Revised Code, the conditions enumerated in divisions	770
(B)(3)(a)(i) and (ii) or divisions (B)(3)(b)(i) and (ii) of that	771
section shall be incorporated in the information described in	772
divisions (A)(2), (3), and (4) of this section.	773

Section 2. That existing sections 5709.62, 5709.63, and	774
5709.631 of the Revised Code are hereby repealed.	775

Section 3. That Sections 38 and 38.20 of Am. Sub. H.B. 95 of	776
the 125th General Assembly be amended to read as follows:	777

Sec. 38. DEV DEPARTMENT OF DEVELOPMENT

778

General Revenue Fund

779

General Services Fund Group

805

Federal Special Revenue Fund Group

811

State Special Revenue Fund Group

826

Facilities Establishment Fund Group

843

Clean Ohio Revitalization Fund

853

Job Development Initiatives Fund

856

Sec. 38.20. CLEAN OHIO OPERATING EXPENSES

864

The foregoing appropriation item 195-663, Clean Ohio	865
Operating, shall be used by the Department of Development in	866
administering sections 122.65 to 122.658 of the Revised Code.	867

INVESTMENT IN TRAINING EXPANSION

868

The foregoing appropriation item 195-667, Investment in	869
Training Expansion, shall be used for the same purposes and in the	870
same manner as specified in Section 38.09 of Am. Sub. H.B. 95 of	871
the 125th General Assembly.	872

WORKER GUARANTEE PROGRAM

873

The foregoing appropriation item 195-668, Worker Guarantee	874
Program, shall be used for the Worker Guarantee Program.	875

Benefited employers must create at least 100 high-paying,	876
full-time jobs over a three-year period and must demonstrate prior	877
to the commitment of state funds that the availability of those	878
skilled workers is a major factor in the employer's decision to	879
locate or expand in Ohio. Activities eligible for funding through	880
the Worker Guarantee Program include job assessment services,	881
screening and testing of potential employees, customized training	882
activities, and any other training or related service determined	883
by the Director.	884

A local workforce development service provider may include,	885
but is not limited to, a community college, technical or	886
vocational school, one-stop center, or any other entity designated	887
by the Director of Development, to provide services under the	888
program.	889

State matching funds totaling one-third of a project's cost	890
shall be provided for each approved project when an employer and	891
any local workforce development service provider, in conjunction	892
with the local community, contracts with the Department of	893
Development to provide services under the program. The employer	894
and the local community each shall provide matching funds totaling	895
one-third of a project's cost, and each portion of the matching	896
funds shall be equal to state funding, which also shall be	897
one-third of a project's cost.	898

The state shall count in-kind contributions when determining	899
a contribution from entities associated with the local community.	900

The Director of Development, in accordance with Chapter 119.	901
of the Revised Code, shall adopt, and may amend or rescind, rules	902
the Director finds necessary for the implementation and successful	903
operation of the Worker Guarantee Program.	904

WRIGHT OPERATING GRANTS

905

The foregoing appropriation item 195-669, Wright Operating	906
Grants, shall be used to provide support to the	907
nonbioscience-oriented Wright Centers and Wright Capital Projects	908
funded by the Board of Regents appropriation item CAP-068, Third	909
Frontier, created by H.B. 675 of the 124th General Assembly.	910
Funding shall be awarded based on criteria established by the	911
Department of Development consistent with the intent of the	912
program. Prior to release of funds from appropriation item	913
195-669, Wright Operating Grants, each grant award shall have been	914
recommended for funding by the Third Frontier Commission and shall	915
have obtained approval from the Controlling Board.	916

Section 4. That existing Sections 38 and 38.20 of Am. Sub.	917
H.B. 95 of the 125th General Assembly are hereby repealed.	918

Section 5. Notwithstanding division (A) of section 169.05 of	919
the Revised Code, upon the request of the Director of Budget and	920
Management, the Director of Commerce, prior to June 30, 2005,	921
shall transfer to the Job Development Initiatives Fund (Fund 5AD)	922
up to $25,800,000 of the unclaimed funds that have been reported	923
by the holders of unclaimed funds as provided by section 169.05 of	924
the Revised Code, irrespective of the allocation of the unclaimed	925
funds under that section.	926

Section 6. Sections 5709.62, 5709.63, and 5709.631 of the	927
Revised Code, as amended by this act, and the items of law of	928
which such sections as amended by this act are composed, are	929
subject to the referendum. Therefore, under Ohio Constitution,	930
Article II, Section 1c and section 1.471 of the Revised Code, such	931
sections as amended by this act, and the items of law of which	932
such sections as amended by this act are composed, take effect on	933
the ninety-first day after this act is filed with the Secretary of	934
State. If, however, a referendum petition is filed against any	935
such section as amended by this act, or against any item of law of	936
which any such section as amended by this act is composed, the	937
section as amended by this act, or item of law, unless rejected at	938
the referendum, takes effect at the earliest time permitted by	939
law.	940

Section 7. The uncodified sections of law amended or enacted	941
in this act, and the items of law of which the uncodified sections	942
of law amended or enacted in this act are composed, are not	943
subject to the referendum. Therefore, under Ohio Constitution,	944
Article II, Section 1d and section 1.471 of the Revised Code, the	945
uncodified sections of law amended or enacted in this act, and the	946
items of law of which the uncodified sections of law amended or	947
enacted in this act are composed, go into immediate effect when	948
this act becomes law.	949

This section does not apply to Sections 1, 2, and 8 of this	950
act.	951

Section 8.  Sections 5709.62 and 5709.63 of the Revised Code	952
are presented in this act as a composite of those sections as	953
amended by both Sub. H.B. 127 and Am. Sub. S.B. 82 of the 125th	954
General Assembly. The General Assembly, applying the principle	955
stated in division (B) of section 1.52 of the Revised Code that	956
amendments are to be harmonized if reasonably capable of	957
simultaneous operation, finds that the composites are the	958
resulting versions of the sections in effect prior to the	959
effective date of the sections as presented in this act.	960