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| To enact sections 730.01 to 730.12, 3310.70 to | 1 |
| 3310.79, and 5709.45 of the Revised Code to permit | 2 |
| the creation of urban homestead zones in cities to | 3 |
| encourage the repopulation of certain city cores, | 4 |
| to create a state urban homestead scholarship | 5 |
| program, and to require tax increment financing in | 6 |
| urban homestead zones that participate in the | 7 |
| scholarship program to help fund the program. | 8 |
| Section 1. That sections 730.01, 730.02, 730.03, 730.04, | 9 |
| 730.05, 730.06, 730.07, 730.08, 730.09, 730.10, 730.11, 730.12, | 10 |
| 3310.70, 3310.71, 3310.72, 3310.73, 3310.74, 3310.75, 3310.76, | 11 |
| 3310.77, 3310.78, 3310.79, and 5709.45 of the Revised Code be | 12 |
| enacted to read as follows: | 13 |
| Sec. 730.01. As used in this chapter, "property owner" means | 14 |
| an owner of a single parcel of real property, and refers | 15 |
| collectively to all persons with a joint or common ownership | 16 |
| interest in a single parcel of real property. | 17 |
| Sec. 730.02. (A) An urban homestead zone may be created | 18 |
| within the boundaries of a city for the purpose of encouraging | 19 |
| repopulation of the area within the city's urban core. | 20 |
| (B) An "urban homestead zone" shall meet all the following | 21 |
| criteria: | 22 |
| (1) The zone is contiguous and its shape cannot be | 23 |
| characterized as being merely a strip or corridor or as resembling | 24 |
| in shape a shoestring or a balloon on a string; | 25 |
| (2) The size of the zone is at least ten acres but not more | 26 |
| than one hundred fifty acres; | 27 |
| (3) The zone does not divide any voting precincts; | 28 |
| (4) At least eighty-five per cent of the area in the zone is | 29 |
| zoned for residential use; | 30 |
| (5) The zone includes at least sixteen parcels of real | 31 |
| property; and | 32 |
| (6) At the time the zone is proposed, all the following apply | 33 |
| to the zone: | 34 |
| (a) Its population has decreased by at least ten per cent in | 35 |
| the period between the two most recent federal decennial censuses, | 36 |
| as reflected in data gathered for those censuses; | 37 |
| (b) Its rate of poverty exceeds the rate of poverty of the | 38 |
| city in which the zone is located by at least ten per cent, as | 39 |
| reflected in data gathered for the most recent federal decennial | 40 |
| census; and | 41 |
| (c) Its homeownership rate has decreased by at least ten per | 42 |
| cent in the period between the two most recent federal decennial | 43 |
| censuses, as reflected in data gathered for those censuses. | 44 |
| (C) More than one urban homestead zone may be created within | 45 |
| a city so long as not more than one hundred fifty acres of the | 46 |
| city in total are within an urban homestead zone at any time. A | 47 |
| parcel of real property may not be included within more than one | 48 |
| urban homestead zone at a time. | 49 |
| (D) Urban homestead zones are not political subdivisions of | 50 |
| the state or state agencies, but are subject to sections 121.22 | 51 |
| and 121.23 of the Revised Code as if they were political | 52 |
| subdivisions or state agencies. | 53 |
| Sec. 730.03. (A) An urban homestead zone shall be organized | 54 |
| as a nonprofit corporation under Chapter 1702. of the Revised | 55 |
| Code, except as otherwise provided in this chapter. In addition to | 56 |
| meeting the requirements for articles of incorporation set forth | 57 |
| in Chapter 1702. of the Revised Code, the articles of | 58 |
| incorporation of an urban homestead zone shall include all the | 59 |
| following: | 60 |
| (1) The name of the zone, which shall include the phrase "of | 61 |
| the city of" immediately followed by the name of the city in which | 62 |
| the zone is located; | 63 |
| (2) A description of the boundaries of, and of the area | 64 |
| within, the zone that is sufficiently specific to enable real | 65 |
| property owners to determine if their property is located within | 66 |
| the zone; | 67 |
| (3) A description of the procedure by which the articles of | 68 |
| incorporation may be amended; | 69 |
| (4) The method by which notice of meetings of the membership | 70 |
| of the zone is to be given and the method by which the membership | 71 |
| of the zone may vote; and | 72 |
| (5) The purposes for which the zone is being created, which, | 73 |
| for zones located within a big eight school district, shall | 74 |
| include an opportunity for qualified homeowners to participate in | 75 |
| the urban homestead scholarship program under sections 3310.70 to | 76 |
| 3310.79 of the Revised Code. | 77 |
| The procedure by which the articles of incorporation may be | 78 |
| amended shall require that the amendment be approved by the city's | 79 |
| legislative authority by resolution, and that the approved | 80 |
| amendment and resolution be filed with the secretary of state and | 81 |
| the department of development. | 82 |
| (B)(1) The articles of incorporation shall be submitted to | 83 |
| the legislative authority of the city in which the proposed urban | 84 |
| homestead zone is to be located, and shall be accompanied by a | 85 |
| petition signed by at least fifty per cent of the property owners | 86 |
| within the proposed urban homestead zone, including at least | 87 |
| twenty-five per cent of the property owners in the proposed urban | 88 |
| homestead zone who also are electors in the proposed zone. A | 89 |
| petition is not valid unless it has at least eight petitioners. | 90 |
| (2) The legislative authority shall send the petition and the | 91 |
| articles of incorporation to the department of development. The | 92 |
| director of development, within sixty days after receiving the | 93 |
| petition and articles, shall determine whether the proposed urban | 94 |
| homestead zone meets the criteria to be an urban homestead zone | 95 |
| and shall return to the city's legislative authority the petition, | 96 |
| the articles of incorporation, and the director's written | 97 |
| determination that the area meets those criteria or, if it does | 98 |
| not, which of the criteria are not met. | 99 |
| (3) If the director of development determines that one or | 100 |
| more of the criteria have not been met, the city's legislative | 101 |
| authority shall inform the petitioners. If the director determines | 102 |
| that the criteria have been met, the legislative authority shall | 103 |
| determine if the proposed urban homestead zone meets the criterion | 104 |
| to be an urban homestead zone stated in division (B)(6)(c) of | 105 |
| section 730.02 of the Revised Code and if, with its creation, not | 106 |
| more than one hundred fifty acres of the city would be within an | 107 |
| urban homestead zone. If the legislative authority determines that | 108 |
| that criterion has been met and that that limitation has been | 109 |
| satisfied, the legislative authority, by resolution, shall approve | 110 |
| or deny the petition, including the associated articles of | 111 |
| incorporation. If the zone is approved and located within a big | 112 |
| eight school district as described in section 3314.02 of the | 113 |
| Revised Code, the legislative authority also shall provide for | 114 |
| payments in lieu of taxes as provided in section 5709.45 of the | 115 |
| Revised Code. If the zone is approved, a copy of the resolution | 116 |
| approving the zone and the articles of incorporation shall be | 117 |
| filed with the secretary of state and the department of | 118 |
| development. | 119 |
| Sec. 730.04. The governing body of an urban homestead zone | 120 |
| is the board of directors of the nonprofit corporation. The board | 121 |
| shall consist of at least five directors. One director shall be | 122 |
| appointed by the city's legislative authority. The other directors | 123 |
| shall be elected at a meeting of the entire membership of the | 124 |
| urban homestead zone. All subsequent elections of these directors | 125 |
| shall be held at a November meeting of the membership. | 126 |
| Membership on the board of directors shall not be considered | 127 |
| holding a public office. The directors and their proxies are | 128 |
| entitled to the immunities provided by Chapter 1702. of the | 129 |
| Revised Code for directors of a nonprofit corporation, unless a | 130 |
| director or proxy is an employee or official of the city and is | 131 |
| acting on the board within the scope of the employee's or | 132 |
| official's employment or official responsibilities. Such a | 133 |
| director or proxy is entitled to the same immunity as an employee | 134 |
| under division (A)(6) of section 2744.03 of the Revised Code. | 135 |
| The board shall elect its chairperson, vice-chairperson, | 136 |
| secretary, and treasurer. These officers serve at the board's | 137 |
| pleasure. A director may be elected to more than one office, | 138 |
| except that the director elected as treasurer shall not be elected | 139 |
| to any other office. | 140 |
| Sec. 730.05. At its first meeting, the board of directors | 141 |
| shall prepare and adopt a general plan for the urban homestead | 142 |
| zone, which may include any or all of the following: | 143 |
| (A) Adoption of a security guard force as provided in section | 144 |
| 730.09 of the Revised Code; | 145 |
| (B) Election of an ombudsperson to act as a liaison between | 146 |
| the city's zoning inspector and the residents and property owners | 147 |
| in the zone on issues related to zoning, building, and other | 148 |
| related regulations in the zone; | 149 |
| (C) Organization of festivals, concerts, or other | 150 |
| community-related events to promote the zone and provide | 151 |
| activities that benefit the zone's residents; or | 152 |
| (D) Within the zone, if applicable, promotion of and support | 153 |
| for the urban homestead scholarship program established in | 154 |
| sections 3310.70 to 3310.79 of the Revised Code, including | 155 |
| application assistance for qualified homeowners of the zone. | 156 |
| The board of directors may amend the general plan. | 157 |
| Sec. 730.06. (A) All records of an urban homestead zone are, | 158 |
| and shall be treated as, public records under section 149.43 of | 159 |
| the Revised Code, except that records of organizations contracting | 160 |
| with a zone shall not be considered to be public records under | 161 |
| section 149.43 or 149.431 of the Revised Code solely because of | 162 |
| the contract with the zone. | 163 |
| (B) The board of directors of an urban homestead zone shall | 164 |
| adopt rules prescribing competitive bidding procedures for | 165 |
| contracts it awards. The rules shall require advertising for bids | 166 |
| and specify the bidding procedures to be followed, and may specify | 167 |
| conditions under which competitive bidding is not required and | 168 |
| other conditions, such as establishing a dollar limit per contract | 169 |
| or specifying particular parties to a contract. The procedures may | 170 |
| differ from competitive bidding procedures applicable to the city | 171 |
| in which the zone is located. | 172 |
| Sec. 730.07. By the first day of March each year, the | 173 |
| treasurer of the board of directors of an urban homestead zone | 174 |
| shall submit a report of the zone's activities and financial | 175 |
| condition for the previous year to each member of the zone and to | 176 |
| the legislative authority of the city. | 177 |
| Sec. 730.08. (A) Each property owner within an urban | 178 |
| homestead zone is a member of the zone. The identity and address | 179 |
| of the owners shall be determined for any particular action of the | 180 |
| nonprofit corporation that governs the zone, including notice of | 181 |
| meetings of the entire membership of the zone, not more than sixty | 182 |
| days before the date of the action, from the most current records | 183 |
| available at the county auditor's office. | 184 |
| (B) Notice of the time, date, and place, and of the agenda | 185 |
| for, any meeting of the board of directors of an urban homestead | 186 |
| zone shall be given to each director by written notice sent by | 187 |
| certified mail or personal service, or by text message transmitted | 188 |
| by electronic device. If possible, the notice shall be transmitted | 189 |
| at least one week before the meeting. | 190 |
| The board shall act by a majority vote of those present at | 191 |
| any meeting of which proper notice has been transmitted. | 192 |
| (C) A director or a member of the zone may appoint a proxy to | 193 |
| carry out the director's or member's rights and responsibilities | 194 |
| under this chapter at a meeting of the entire membership of the | 195 |
| urban homestead zone by filing a written proxy form with the | 196 |
| secretary of the board of directors at least three days before the | 197 |
| meeting. The form shall include the name and address of the | 198 |
| director or member, the name and address of the proxy, and the | 199 |
| date of the meeting at which the proxy may carry out the rights | 200 |
| and responsibilities of the director or member. | 201 |
| A member of the zone also may appoint a designee to carry out | 202 |
| the member's rights and responsibilities under this chapter by | 203 |
| filing a written designation form with the secretary of the board | 204 |
| of directors. The designation form shall include the name and | 205 |
| address of the member, the name and address of the designee, and | 206 |
| the expiration date, if any, of the designation, and may authorize | 207 |
| the designee to vote at any zone meeting. | 208 |
| A proxy or designee need not be an elector or resident of the | 209 |
| urban homestead zone or the city. The appointment of a proxy or | 210 |
| designee may be changed by filing a new form with the secretary of | 211 |
| the board of directors. The most current form filed with the | 212 |
| secretary is the valid appointment. Transmittal of any notice to a | 213 |
| proxy or designee at the proxy's or designee's address as shown on | 214 |
| that form satisfies any requirements for notification of the | 215 |
| director or member of the zone. | 216 |
| Sec. 730.09. (A) The board of directors of an urban | 217 |
| homestead zone may adopt a written plan for a security guard force | 218 |
| for the zone. Each plan shall include all of the following: | 219 |
| (1) Specific requirements for and functions of the force; | 220 |
| (2) A method of assessment to be used to pay for the force | 221 |
| and the period of time the assessments are to be levied; and | 222 |
| (3) The period of time that the force is to provide services. | 223 |
| (B) When the board of directors adopts a security guard plan, | 224 |
| it shall submit the plan to the legislative authority of the city | 225 |
| for review. Within sixty days after the date the plan is submitted | 226 |
| to the legislative authority, the legislative authority may submit | 227 |
| to the board of directors its comments and recommendations on the | 228 |
| plan. After reviewing the comments and recommendations, the board | 229 |
| of directors may amend the plan. | 230 |
| The board of directors next shall submit the plan, whether | 231 |
| amended or not, in the form of a petition to the members of the | 232 |
| urban homestead zone. Once the petition is signed by a majority of | 233 |
| the members, it shall be submitted to the legislative authority | 234 |
| for approval. | 235 |
| The legislative authority, by resolution, shall approve or | 236 |
| reject a submitted petition within sixty days after receiving it. | 237 |
| If the petition is approved, the plan shall be effective at the | 238 |
| earliest date on which a nonemergency resolution or ordinance of | 239 |
| the legislative authority may become effective. | 240 |
| (C) When a security guard plan is in effect, the city's | 241 |
| legislative authority shall levy, by special assessment upon all | 242 |
| members of the urban homestead zone, the costs of the plan in | 243 |
| accordance with the procedures set forth in Chapter 727. of the | 244 |
| Revised Code, except that the assessment may be levied only by one | 245 |
| or both of the methods listed in divisions (A) and (B) of section | 246 |
| 727.01 of the Revised Code. Property owners assessed under this | 247 |
| section are entitled to all the rights and privileges of property | 248 |
| owners assessed under Chapter 727. of the Revised Code, including | 249 |
| the rights and privileges specified in sections 727.15 to 727.17 | 250 |
| and 727.18 to 727.22 of the Revised Code and the right to notice | 251 |
| of the resolution of necessity and the filing of the estimated | 252 |
| assessment under section 727.13 of the Revised Code. The | 253 |
| legislative authority shall notify the tax commissioner of any | 254 |
| assessments. | 255 |
| The costs of a security guard plan may include any or all of | 256 |
| the following: | 257 |
| (1) The cost of creating and operating the urban homestead | 258 |
| zone under this chapter, including creating and operating the | 259 |
| nonprofit corporation governing the zone, hiring employees and | 260 |
| professional services, contracting for insurance, and purchasing | 261 |
| or leasing office space or office equipment; | 262 |
| (2) The cost of planning and implementing the plan, including | 263 |
| payment of legal, insurance, and planning fees and expenses; | 264 |
| (3) Court costs incurred by the zone in implementing the | 265 |
| plan; and | 266 |
| (4) Damages resulting from implementing the plan. | 267 |
| Sec. 730.10. An owner of a fee interest in real property | 268 |
| located within an urban homestead zone who enters into a contract | 269 |
| to transfer the interest shall give to the transferee within the | 270 |
| specified period of time all of the following: | 271 |
| (A) Within five days after entering into the contract, any | 272 |
| notice for special assessments under this chapter that the owner | 273 |
| received within ninety days before entering into the contract; | 274 |
| (B) Within five days after its receipt, each notice for | 275 |
| special assessments under this chapter that the owner receives | 276 |
| after entering into the contract and until it is completely | 277 |
| performed or terminates; and | 278 |
| (C) Within five days after entering into the contract, when | 279 |
| applicable, notice that resident owners may qualify to participate | 280 |
| in the urban homestead scholarship program. | 281 |
| Sec. 730.11. (A) After twenty years of existence, an urban | 282 |
| homestead zone is dissolved. | 283 |
| (B) An urban homestead zone may be dissolved before twenty | 284 |
| years have expired. The dissolution shall be initiated by a | 285 |
| petition that is signed by members of the urban homestead zone who | 286 |
| own at least twenty per cent of the real property located in the | 287 |
| zone. The petition shall be filed with the legislative authority | 288 |
| of the city. Not later than forty-five days after the petition is | 289 |
| filed, the members of the zone shall meet to consider the | 290 |
| petition. Notice of the meeting shall be given as provided in | 291 |
| division (B) of section 730.08 of the Revised Code. Upon the | 292 |
| affirmative vote at the meeting of members who collectively own | 293 |
| more than fifty per cent of the taxable value established by the | 294 |
| county auditor for purposes of real estate taxation of the real | 295 |
| property in the zone, the zone shall be dissolved. The results of | 296 |
| the vote shall be certified to the legislative authority. If the | 297 |
| vote is to dissolve the zone, the legislative authority, by | 298 |
| resolution, shall dissolve the zone. The legislative authority | 299 |
| shall send a certified copy of the resolution to the secretary of | 300 |
| state, the department of development, and the department of | 301 |
| education. | 302 |
| (C) No rights or obligations of any person under any | 303 |
| contract, or in relation to any assessments made under this | 304 |
| chapter, are affected by the dissolution of an urban homestead | 305 |
| zone, except with the consent of that person or by order of a | 306 |
| court with jurisdiction over the matter. Upon a zone's | 307 |
| dissolution, any assets or rights of the zone, after payment of | 308 |
| all obligations of the zone, shall be deposited in a special | 309 |
| account of the city. | 310 |
| Sec. 730.12. Any service provided to an urban homestead zone | 311 |
| under this chapter shall be in addition to, and not in lieu of, | 312 |
| any public services otherwise provided by the city. A city may not | 313 |
| rely on the services provided to an urban homestead zone under a | 314 |
| general plan, a security guard plan, or any other plan adopted by | 315 |
| the board of directors of the zone when deciding whether to | 316 |
| provide public services or whether to reduce or increase public | 317 |
| services otherwise provided by the city to the zone. | 318 |
| Sec. 3310.70. As used in sections 3310.70 to 3310.79 of the | 319 |
| Revised Code: | 320 |
| (A) "Big eight school district" has the same meaning as in | 321 |
| section 3314.02 of the Revised Code. | 322 |
| (B) "Chartered nonpublic school" means a nonpublic school | 323 |
| that holds a valid charter issued by the state board of education | 324 |
| under section 3301.16 of the Revised Code and that meets the | 325 |
| standards established for those schools in rules adopted by the | 326 |
| state board. | 327 |
| (C) "Qualified child" means the child of a qualified | 328 |
| homeowner who is entitled under section 3313.64 or 3313.65 of the | 329 |
| Revised Code to attend school in a big eight school district and | 330 |
| who is enrolled in a chartered nonpublic school. | 331 |
| (D) "Qualified homeowner" means the owner and occupant of a | 332 |
| qualifying residence. | 333 |
| (E) "Qualifying residence" means a residence for which both | 334 |
| of the following conditions are satisfied: | 335 |
| (1) The residence is located in both an urban homestead zone | 336 |
| established under Chapter 730. of the Revised Code and a big eight | 337 |
| school district; and | 338 |
| (2) The owner and occupant or a predecessor owner and | 339 |
| occupant of the residence or a combination of them has spent not | 340 |
| less than one hundred twenty thousand dollars in improvements on | 341 |
| the residence since the urban homestead zone was established. | 342 |
| (F) "School year" has the same meaning as in section 3313.62 | 343 |
| of the Revised Code. | 344 |
| Sec. 3310.71. The urban homestead scholarship program is | 345 |
| hereby established. Under the program, in each school year, the | 346 |
| department of education, upon certification from the director of | 347 |
| development under section 3310.73 of the Revised Code, shall pay a | 348 |
| scholarship to a qualified homeowner for each of the homeowner's | 349 |
| qualified children, subject to the maximum number of scholarships | 350 |
| prescribed by the general assembly for that school year. If the | 351 |
| number of students who apply for a scholarship exceeds the number | 352 |
| prescribed by the general assembly, the department first shall | 353 |
| award scholarships to qualified children who received scholarships | 354 |
| in the prior school year, and then shall select qualified children | 355 |
| by lot to receive any remaining scholarships. | 356 |
| Sec. 3310.72. (A) In order to be considered a qualifying | 357 |
| residence for purposes of the urban homestead scholarship program, | 358 |
| a person who owns a residence in an urban homestead zone shall | 359 |
| file with the director of development all of the following: | 360 |
| (1) A certified copy of the deed to the residence; | 361 |
| (2) Documents or forms as prescribed by the director that | 362 |
| indicate both of the following: | 363 |
| (a) The residence is located in both an urban homestead zone | 364 |
| established under Chapter 730. of the Revised Code and a big eight | 365 |
| school district; and | 366 |
| (b) The person applying for the right, or one or more | 367 |
| predecessor owners and occupants, or a combination of them, has | 368 |
| spent not less than one hundred twenty thousand dollars in | 369 |
| improvements on the residence since the urban homestead zone was | 370 |
| established; | 371 |
| (3) A certified copy of all building permits related to the | 372 |
| improvements on the residence; and | 373 |
| (4) A certified copy of the occupancy permit for the | 374 |
| residence. | 375 |
| (B) Upon satisfaction that all documents required under | 376 |
| division (A) of this section have been submitted and are | 377 |
| authentic, the director of development shall determine whether the | 378 |
| residence is a qualifying residence and provide written notice of | 379 |
| that determination to the owner. | 380 |
| (C) Qualifying residence status is a property right that runs | 381 |
| with the land on which that residence is located for the duration | 382 |
| of the urban homestead zone, beginning on the first day of the | 383 |
| school year that first succeeds the date the urban homestead zone | 384 |
| in which the residence is located was established. | 385 |
| Sec. 3310.73. (A) An owner of a qualifying residence may | 386 |
| apply for a scholarship under the urban homestead scholarship | 387 |
| program by submitting to the director of development, in the | 388 |
| manner prescribed by and before a deadline established by | 389 |
| rules adopted under Chapter 119. of the Revised Code, all of the | 390 |
| following: | 391 |
| (1) The name of the owner; | 392 |
| (2) The address and legal description of the qualifying | 393 |
| residence; | 394 |
| (3) The name of each child for whom a scholarship is sought; | 395 |
| (4) The name and address of the chartered nonpublic school in | 396 |
| which each child has been accepted for enrollment and the amount | 397 |
| of tuition charged by the school for the school year; and | 398 |
| (5) Any other information required by the director. | 399 |
| (B) The director shall examine the application to determine | 400 |
| if the person seeking a scholarship is a qualified homeowner and | 401 |
| the child is a qualified child. Upon satisfaction that the person | 402 |
| is a qualified homeowner and the child is a qualified child, the | 403 |
| director shall certify to the department of education those | 404 |
| findings and the information submitted under division (A) of this | 405 |
| section. Upon receipt of that information, the department shall | 406 |
| pay a scholarship to each qualified homeowner for each qualified | 407 |
| child, subject to the maximum number of scholarships prescribed by | 408 |
| the general assembly for that school year. | 409 |
| Sec. 3310.74. (A) The amount paid for each qualified child | 410 |
| under the urban homestead scholarship program shall be the lesser | 411 |
| of the tuition charged by the chartered nonpublic school in which | 412 |
| the child is enrolled or the maximum amount prescribed for an | 413 |
| educational choice scholarship for the current school year under | 414 |
| section 3310.09 of the Revised Code. | 415 |
| (B) The department of education shall pay to each qualified | 416 |
| homeowner for each qualified child awarded a scholarship under the | 417 |
| program periodic partial payments of the scholarship during the | 418 |
| school year at times prescribed by the department. | 419 |
| (C) The department shall proportionately reduce or terminate | 420 |
| the payments for any qualified child who withdraws from the | 421 |
| chartered nonpublic school in which the child is enrolled before | 422 |
| the end of the school year. | 423 |
| Sec. 3310.75. A scholarship awarded and paid under the urban | 424 |
| homestead scholarship program shall be used only to pay tuition a | 425 |
| qualified homeowner owes to a chartered nonpublic school for the | 426 |
| homeowner's qualified children. | 427 |
| Sec. 3310.76. The general assembly shall prescribe for each | 428 |
| school year the maximum number of qualified children that may be | 429 |
| awarded scholarships under the urban homestead scholarship | 430 |
| program. | 431 |
| Sec. 3310.77. Urban homestead scholarships shall be funded | 432 |
| by appropriations of the general assembly and payments collected | 433 |
| pursuant to section 5709.45 of the Revised Code. The payments | 434 |
| shall be deposited into the state treasury to the credit of the | 435 |
| state urban homestead scholarship fund, which is hereby created. | 436 |
| Money credited to the fund shall be used solely to pay urban | 437 |
| homestead scholarships. The department of education shall adopt | 438 |
| procedures for payment of scholarships from the fund. | 439 |
| Sec. 3310.78. Notwithstanding division (K) of section | 440 |
| 3301.0711 of the Revised Code, each chartered nonpublic school | 441 |
| that enrolls students awarded and paid scholarships under the | 442 |
| urban homestead scholarship program annually shall administer the | 443 |
| tests prescribed by section 3301.0710 or 3301.0712 of the Revised | 444 |
| Code to each scholarship student under section 3301.0711 of the | 445 |
| Revised Code. Each chartered nonpublic school shall report to the | 446 |
| department of education the results of each test administered to | 447 |
| each scholarship student under this section. | 448 |
| Nothing in this section requires a chartered nonpublic school | 449 |
| to administer any achievement test, except for an Ohio graduation | 450 |
| test prescribed under division (B) of section 3301.0710 of the | 451 |
| Revised Code, as required by section 3313.612 of the Revised Code, | 452 |
| to any student enrolled in the school who is not a scholarship | 453 |
| student. | 454 |
| Sec. 3310.79. The director of development and the state board | 455 |
| of education each shall adopt rules under Chapter 119. of the | 456 |
| Revised Code prescribing procedures for the administration of | 457 |
| their functions under the urban homestead scholarship program. | 458 |
| Sec. 5709.45. (A)(1) The legislative authority of a city | 459 |
| that has created an urban homestead zone within its boundaries | 460 |
| under Chapter 730. of the Revised Code that is located within a | 461 |
| big eight school district as defined in section 3314.02 of the | 462 |
| Revised Code shall adopt an ordinance for each such zone declaring | 463 |
| improvements to parcels within the zone to be a public purpose and | 464 |
| exempt from taxation as provided in this section. | 465 |
| (2) The ordinance shall specifically identify each parcel | 466 |
| within the zone that is covered by the ordinance and the | 467 |
| percentage of the improvements to be exempted, which shall not | 468 |
| exceed seventy-five per cent. | 469 |
| (3) The exemption from taxation commences with the tax year | 470 |
| in which an improvement first appears on the tax list and | 471 |
| duplicate of real and public utility property and ends on the date | 472 |
| the urban homestead zone is dissolved, except the ordinance may | 473 |
| specify an earlier end date. If an exemption ends during a tax | 474 |
| year, the procedure for the apportionment of the taxes for that | 475 |
| year is the same as in the case of other changes in tax exemption | 476 |
| status during the year. | 477 |
| (B)(1) The legislative authority of the city shall require | 478 |
| the owner of a parcel identified in the ordinance to make annual | 479 |
| payments in lieu of taxes to the county treasurer on or before the | 480 |
| final dates for payment of real property taxes. Each payment shall | 481 |
| be charged and collected in the same manner and in the same amount | 482 |
| as the real property taxes that would have been charged and | 483 |
| payable against any improvement made on the parcel if it were not | 484 |
| exempt from taxation. The amount of the payments shall not be | 485 |
| affected by a reduction in the levies otherwise applicable to the | 486 |
| exempt property made by the county budget commission under section | 487 |
| 5705.31 of the Revised Code. The legislative authority shall not | 488 |
| require an owner to make annual service payments in lieu of taxes | 489 |
| pursuant to this section after the date on which the urban | 490 |
| homestead zone is dissolved. The county treasurer shall maintain a | 491 |
| record of the payments in lieu of taxes made from property in the | 492 |
| urban homestead zone. | 493 |
| (2) Moneys collected as payments in lieu of taxes shall be | 494 |
| paid over to the treasurer of state to be deposited in the urban | 495 |
| homestead scholarship fund and shall be set aside for use as | 496 |
| scholarships to be awarded to qualified homeowners in the urban | 497 |
| homestead zone from which the moneys were collected, except that | 498 |
| any moneys remaining after a zone dissolves are no longer set | 499 |
| aside for that zone and may be used to fund any urban homestead | 500 |
| scholarship. | 501 |
| (C) Not later than fifteen days after adopting an ordinance | 502 |
| under this section, the legislative authority shall submit a copy | 503 |
| of the ordinance to the director of development, the department of | 504 |
| education, and the tax commissioner. On or before the thirty-first | 505 |
| day of March of each year, the director of development shall | 506 |
| submit a status report to the legislative authority and the | 507 |
| superintendent of public instruction indicating the funds raised | 508 |
| for scholarships in the urban homestead zone, including a summary | 509 |
| of the receipts for payments in lieu of taxes, and the | 510 |
| expenditures of money from the urban homestead scholarship fund in | 511 |
| the zone, including both moneys from the state and moneys from | 512 |
| payments in lieu of taxes. | 513 |
| (D) Any parcel within the zone that is the subject of an | 514 |
| ordinance adopted under section 5709.40 or 5709.41 of the Revised | 515 |
| Code shall be excluded from any ordinance adopted under this | 516 |
| section, and, if a parcel is subject to an ordinance adopted under | 517 |
| this section, it shall not be the subject of an ordinance adopted | 518 |
| under either of those sections. | 519 |
| Section 2. Chapter 730. of the Revised Code shall be known as | 520 |
| "Urban Homestead Zones." | 521 |