As Reported by the House Agriculture and Natural Resources Committee

127th General Assembly Regular Session 2007-2008

Am. H. B. No. 289

Representative Core 

Cosponsors: Representatives Distel, Hite, Gibbs, Sayre, Zehringer, Reinhard 

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A BILL

To amend sections 931.02, 931.03, 931.04, 931.99, and

1

5709.28 of the Revised Code to make changes to the

2

law governing agricultural security areas.

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

Section 1. That sections 931.02, 931.03, 931.04, 931.99, and	4
5709.28 of the Revised Code be amended to read as follows:	5

Sec. 931.02. (A) Land that is located in the unincorporated	6
area of a township or county may be enrolled in an agricultural	7
security area through the submittal of an application to the board	8
of township trustees of each township and to the board of county	9
commissioners of each county in which the land is located	10
requesting the establishment of such an area. Land that is located	11
in a municipal corporation and land that is located in territory	12
that is proposed to be annexed to a municipal corporation by a	13
pending proceeding before the board of county commissioners or in	14
any court of competent jurisdiction shall not be included in an	15
agricultural security area.	16

If all of the land sought to be enrolled in the agricultural	17
security area is owned by the same person, that person shall	18
submit the application to the required boards. If the land sought	19
to be enrolled consists of parcels owned by different persons who	20
have aggregated their parcels, either each owner may submit a	21
separate application to the required boards or all of the owners	22
collectively may submit one application for the entire	23
agricultural security area to the required boards.	24

An application shall be on the form that the director of	25
agriculture prescribes. The director shall provide copies of the	26
application form to county auditors.	27

An application shall be signed by each applicant who is	28
submitting it and shall contain all of the following:	29

(1) The first, middle, and last name of the applicant or	30
applicants;	31

(2) Information concerning any property interest in the land	32
sought to be enrolled in an agricultural security area that is	33
held by a person other than the applicant or applicants,	34
including, without limitation, mineral rights or easements in the	35
land that are held by a person other than the applicant or	36
applicants and any other interest in the land that may not be	37
conducive to agriculture and that is held by another person;	38

(3) A statement by each applicant who is submitting the	39
application that the applicant will not initiate, approve, or	40
finance any new development for nonagricultural purposes on the	41
land that is proposed to be enrolled in an agricultural security	42
area during the ten-year period of the enrollment, except as is	43
otherwise authorized under division (A) of section 931.04 of the	44
Revised Code. For purposes of division (A)(3) of this section,	45
"new development" includes, without limitation, an applicant's	46
transfer to another person of the ownership of a property interest	47
in the land that occurs during the period beginning on the date	48
that the application is submitted and ending on the date that the	49
ten-year period of enrollment is scheduled to expire, except as	50
otherwise provided in division (D) of this section. "New	51
development" does not include taking any actions that are	52
authorized under property rights in the land, such as mineral	53
rights or easements, that were transferred to a person other than	54
an applicant prior to the date that the application is submitted.	55
In addition, "new development" does not include the grant of	56
easements for or the construction, modification, or operation of	57
transmission lines for electricity, gas, or oil or of any	58
gathering or production lines for oil or gas, or the grant of new	59
mineral leases, or the drilling or operation of any oil or gas	60
well on or in connection with the land, provided that the	61
construction, modification, or operation ofthe lines doessuch	62
activities do not cause the land to become ineligible for	63
valuation and assessment for real property tax purposes in	64
accordance with its current agricultural use value under sections	65
5713.30 to 5713.38 of the Revised Code.	66

(4) A listing of all administrative enforcement orders issued	67
to each applicant who is submitting the application, all civil	68
actions in which an applicant was determined by the trier of fact	69
to be liable in damages or was the subject of injunctive relief or	70
another type of civil relief, and all criminal actions in which an	71
applicant pleaded guilty or was convicted, during the ten years	72
immediately preceding the date of submission of the application,	73
in connection with any violation of environmental laws or similar	74
laws of another state. As used in division (A)(4) of this section,	75
"environmental laws" has the same meaning as in section 3745.70 of	76
the Revised Code.	77

(5) A statement from the natural resources conservation	78
service in the United States department of agriculture, a soil and	79
water conservation district with jurisdiction over the land to	80
which the application applies, or any other conservation	81
professional approved by the director that, at the time of the	82
application, each applicant who is submitting the application is	83
complying with best management practices;	84

(6) A map that complies with all of the following:

85

(a) Is prepared and certified by a regional or county	86
planning commission established under section 713.21 of the	87
Revised Code or; a professional engineer, including a county	88
engineer, or surveyor registered under Chapter 4733. of the	89
Revised Code; a soil and water conservation district created	90
pursuant to section 1515.03 of the Revised Code; or the natural	91
resources conservation service;	92

(b) Identifies the area of land to which the application	93
applies and includes the corresponding parcel number that the	94
county auditor has assigned under section 319.28 of the Revised	95
Code to each parcel of land that comprises that area;	96

(c) Shows the boundaries of the land to be enrolled in an	97
agricultural security area;	98

(d) Shows the names and locations of all streams, creeks, or	99
other bodies of water, roads, rights-of-way, and railroads,	100
utility lines, and water and sewer lines together with any	101
existing residential, recreational, commercial, or industrial	102
facilities that are on or are situated on the land to be included	103
in the area and within five hundred feet of the perimeter of the	104
area;. The map also shall show the location of all utility, water,	105
and sewer lines that are situated on the land to be included in	106
the area and within five hundred feet of the perimeter of the area	107
unless the board of county commissioners of each county and the	108
board of township trustees of each township in which the land is	109
located exempts the application from that requirement because the	110
information generally is not readily available.	111

(e) Indicates the date on which the map was prepared;

112

(f) Identifies the person or persons who prepared the map.

113

(7) A list of the other boards of township trustees and	114
boards of county commissioners to whom an application has been	115
submitted.	116

An application submitted under this section is a public	117
record.	118

A board of township trustees and a board of county	119
commissioners each may establish a reasonable fee or schedule of	120
fees to be paid at the time that an application is submitted for	121
the purpose of paying the costs of public notice and certified	122
mail that are incurred in any proceedings conducted under this	123
chapter. The clerk of the board shall maintain an accurate and	124
detailed accounting of all money that is received and expended in	125
the processing of an application and shall return to the applicant	126
any unused portion of the fee or fees after the conclusion of the	127
proceedings.	128

(B) An area shall be established as an agricultural security	129
area when all of the following criteria are satisfied:	130

(1) The area consists of not less than five hundred acres of	131
contiguous farmland that is located in the unincorporated area of	132
a township or county. In order to satisfy this requirement, two or	133
more owners of contiguous farmland may aggregate their land.	134

(2) The land forming the area is in an agricultural district	135
or districts established under Chapter 929. of the Revised Code.	136

(3) The land forming the area is valued and assessed for real	137
property tax purposes in accordance with its current agricultural	138
use value under sections 5713.30 to 5713.38 of the Revised Code.	139
Land forming the area that is a portion of a farm on which is	140
located a dwelling house, a yard, or outbuildings such as a barn	141
or garage shall be deemed to satisfy the criteria established in	142
divisions (B)(1) and (3) of this section.	143

(4) Each application submitted by the owner or owners of the	144
land forming the area is approved under section 931.03 of the	145
Revised Code by the boards of township trustees of all of the	146
townships in which the land is located.	147

(5) Each application submitted by the owner or owners of the	148
land forming the area is approved under section 931.03 of the	149
Revised Code by the boards of county commissioners of all of the	150
counties in which the land is located.	151

(C) Additional contiguous farmland may be enrolled in an	152
existing agricultural security area during a partially elapsed	153
ten-year enrollment period either by a landowner who already has	154
land enrolled in the agricultural security area or by a landowner	155
who does not already have land enrolled in the agricultural	156
security area. To enroll additional contiguous land in an existing	157
agricultural security area under this division, a landowner shall	158
obtain permission from each owner of land that already is	159
enrolled in the agricultural security area, submit an application	160
in accordance with this section, and obtain approval of the	161
application from all appropriate boards of township trustees and	162
boards of county commissioners in accordance with section 931.03	163
of the Revised Code. Enrollment of the additional land in the	164
existing agricultural security area shall continue until the	165
expiration of the current, partially elapsed ten-year enrollment	166
period and may be renewed in accordance with section 931.06 of	167
the Revised Code.	168

(D) If an owner of land that is enrolled in an agricultural	169
security area transfers the land to another person during a	170
partially elapsed ten-year enrollment period, the land may remain	171
in the agricultural security area until the expiration of that	172
period, provided that both of the following apply:	173

(1) The transferee certifies and submits a statement,	174
together with the transferee's first, middle, and last name and a	175
description of the transferred land, to the appropriate boards of	176
township trustees and boards of county commissioners specifying	177
that, in accordance with division (A)(3) of this section, the	178
transferee will not initiate, approve, or finance any new	179
development for nonagricultural purposes on the transferred land	180
during the remainder of the partially elapsed ten-year enrollment	181
period. Upon receipt of the statement, the boards of township	182
trustees and boards of county commissioners shall adopt a	183
resolution acknowledging the receipt.	184

(2) The transferred land continues to satisfy the criteria	185
established in divisions (B)(2) and (3) of this section during the	186
remainder of the partially elapsed ten-year enrollment period.	187

Divisions (A), (B), and (C) of section 931.03 of the Revised	188
Code do not apply to the continued inclusion of such transferred	189
land in an agricultural security area. Upon the expiration of the	190
partially elapsed ten-year enrollment period, enrollment in the	191
agricultural security area may be renewed in accordance with	192
section 931.06 of the Revised Code.	193

Sec. 931.03. (A)(1) Not later than sixty days after receipt	194
of an application submitted under section 931.02 of the Revised	195
Code, the board of township trustees of each township in which the	196
land that is proposed for enrollment in an agricultural security	197
area is located and the board of county commissioners of each	198
county in which the land is located shall hear the application at	199
the next regularly scheduled meeting of the board. A board, not	200
later than thirty days prior to the time of the meeting, shall	201
cause a notice containing the time and place of the meeting to be	202
published in a newspaper of general circulation in the township or	203
county, as applicable, and to be sent to the superintendent of	204
each school district within the proposed agricultural security	205
area, the county engineer of each county in which the proposed	206
area would be located, the legislative authority of each municipal	207
corporation that is located within one-half mile of the boundaries	208
of the proposed area if the municipal corporation has requested	209
notice of such a meeting, and the director of transportation.	210

As part of the hearing on an application, a board shall	211
review any information that it possesses concerning improvements	212
that are planned to be made during the subsequent ten years to	213
existing or proposed roads that are located or are to be located	214
within the area that is proposed for enrollment in an agricultural	215
security area. As used in division (A)(1) of this section,	216
"proposed road" means any future roadway project that is on a new	217
alignment or relocation of an existing alignment and for which	218
state or federal funding has been allocated for, but not limited	219
to, a planning level roadway improvement study, an interchange	220
justification or bypass study, environmental review, design,	221
right-of-way acquisition, or construction, and "improvement"	222
includes any action taken with respect to an existing or proposed	223
road that would cause the road to cover a portion of land that it	224
does not cover or is not proposed to cover at the time of the	225
hearing. Any portion of land that would be covered by a planned	226
improvement shall not be eligible for enrollment in an	227
agricultural security area.	228

As part of the hearing on an application, a board also may	229
consider any comprehensive plan that is in place for the county or	230
township, as applicable, and may choose to approve or reject the	231
application on the basis of the proposed agricultural security	232
area's compliance with the comprehensive plan.	233

(2) The board of township trustees of each township and the	234
board of county commissioners of each county that is required to	235
hear an application under division (A)(1) of this section may	236
conduct a joint meeting in lieu of meeting separately not later	237
than forty-five days after receipt of an application under section	238
931.02 of the Revised Code. A single public notice concerning the	239
meeting shall be provided in the manner prescribed in division	240
(A)(1) of this section in each township and county participating	241
in the meeting. The cost of the public notice shall be shared	242
equally by all townships and counties participating in the joint	243
meeting.	244

For purposes of such a joint meeting, the clerk of the board	245
of county commissioners of the county that includes the most land	246
that is located or is to be located within the agricultural	247
security area shall serve as the clerk on behalf of all boards of	248
county commissioners and boards of township trustees participating	249
in the joint meeting. The clerk's duties shall include providing	250
the public notice that is required under this section together	251
with maintaining minutes and a record of proceedings for the joint	252
meeting.	253

(3) Not later than forty-five days after a board of township	254
trustees hears the application and not later than sixty days after	255
a board of county commissioners hears the application, each	256
respective board shall adopt a resolution either approving or	257
rejecting the application. However, if a board determines that	258
the information in the application is incorrect or the application	259
is incomplete, the board shall return the application to the	260
applicant, by certified mail, with an enumeration of the items	261
that are incorrect or incomplete.	262

Upon receipt of the returned application, the applicant may	263
amend the application. Not later than fifteen days after receipt	264
of the returned application, the applicant may submit an amended	265
application to each board of township trustees and each board of	266
county commissioners to whom the original application was	267
submitted.	268

Not later than thirty days after receipt of an amended	269
application, a board shall adopt a resolution either approving or	270
rejecting the amended application. Not later than five days after	271
adoption of the resolution, the board shall notify the applicant,	272
by certified mail, of the board's decision to approve or reject	273
the application.	274

(4) Any person may submit comments to any board of county	275
commissioners or board of township trustees to which an	276
application or amended application has been submitted under this	277
chapter at any time prior to and at any public meeting at which	278
the application or amended application is heard.	279

(B)(1) An agricultural security area is established, and the	280
land that is proposed for inclusion in the area is enrolled in the	281
area, upon the adoption of a resolution by each of the affected	282
boards of township trustees and boards of county commissioners	283
approving the same version of the application or applications	284
requesting the establishment of the area.	285

(2) Not later than thirty days after a board adopts a	286
resolution approving the establishment of an agricultural security	287
area, the board shall send a copy of the resolution to the	288
director of agriculture, the director of transportation, the	289
superintendent of each school district within the area, the county	290
engineer, and the county auditor.	291

(C) A resolution approving the establishment of an	292
agricultural security area shall include all of the following:	293

(1) A statement that the board of township trustees or board	294
of county commissioners, as applicable, commits not to initiate,	295
approve, or finance any development for residential, commercial,	296
or industrial purposes, including construction of new roads and	297
water and sewer lines, within the area for a period of ten years.	298
For purposes of division (C)(1) of this section, "development"	299
does not include any of the following:	300

(a) The improvement of existing roads, provided that the	301
county engineer of each county in which the portion of the area	302
affected by the improvement is located determines that the	303
improvement is necessary for traffic safety, and provided that the	304
improvement is as consistent as possible with the agricultural use	305
of land in the area;	306

(b) The construction, modification, or operation of	307
transmission lines for electricity, gas, or oil or of any	308
gathering or production lines for oil or gas, provided that the	309
construction, modification, or operation of the lines does not	310
cause the land to become ineligible for valuation and assessment	311
for real property tax purposes in accordance with its current	312
agricultural use value under sections 5713.30 to 5713.38 of the	313
Revised Code;	314

(c) The construction, modification, or operation of water	315
lines or sewer lines, provided that an official or employee of the	316
environmental protection agency orders the construction,	317
modification, or operation for the purpose of enabling water and	318
sewer service areas that are outside of the agricultural security	319
area to be connected to each other, and provided that the lines do	320
not provide service connections to land within the agricultural	321
security area.	322

(2) A requirement that the owner or owners of the land in the	323
area use best management practices;	324

(3) A statement that describes the agreement that was reached	325
with other boards, if applicable, under section 5709.28 of the	326
Revised Code concerning the percentage of the taxable value of	327
qualifying agricultural real property in the agricultural security	328
area that is to be exempted from taxation under that section and	329
the number of years that the tax exemption established under that	330
section will apply to that property.	331

(D) An agricultural security area may continue in existence	332
for ten years unless either of the following occurs:	333

(1) The sole owner of land enrolled in the area withdraws	334
under section 931.07 of the Revised Code.	335

(2) Unless division (C) of section 931.07 of the Revised Code	336
applies, land in the area fails to satisfy any of the criteria	337
specified in divisions (B)(1) to (3) of section 931.02 of the	338
Revised Code.	339

(E) The approval or disapproval of an application under this	340
section is not a final order, adjudication, or decision under	341
section 2506.01 of the Revised Code and is not appealable under	342
Chapter 2506. of the Revised Code.	343

Sec. 931.04. (A) An owner of land that is enrolled in an	344
agricultural security area may do either or both of the following:	345

(1) Request approval to operate any business that does not	346
impair the owner's ability to engage in agriculture from each	347
board of township trustees and each board of county commissioners	348
that adopted a resolution approving the establishment of the	349
agricultural security area to operate any business that does not	350
impair the owner's ability to engage in agriculture and does not	351
cause the land to become ineligible for valuation and assessment	352
for real property tax purposes in accordance with its current	353
agricultural use value under sections 5713.30 to 5713.38 of the	354
Revised Code;	355

(2) Develop, authorize the development of, or, for the	356
purpose of developing, transfer ownership of a portion of the	357
owner's land within the agricultural security area for	358
constructing or otherwise establishing a single-family residence	359
for an individual who is related by consanguinity or by affinity	360
to the owner. Not more than one such residence shall be	361
constructed per each forty acres of the owner's land within the	362
agricultural security area.	363

(B)(1) To obtain approval to operate a business under	364
division (A)(1) of this section, a person shall send a written	365
request, by certified mail, to each appropriate board of township	366
trustees and each appropriate board of county commissioners. The	367
request shall contain all of the following:	368

(a) A description of the proposed business;

369

(b) A description of the intended location of the business;

370

(c) A description of the intended size of the business;

371

(d) If applicable, a detailed description of any	372
construction, renovation, or excavation that will occur for	373
purposes of the proposed business.	374

(2) Not later than thirty days after receipt of a request	375
under division (B)(1) of this section, a board shall adopt a	376
resolution either approving or rejecting the request. If the board	377
approves the request, the board shall send a copy of the	378
resolution approving the request to each of the following not	379
later than thirty days after adopting the resolution:	380

(a) The director of agriculture;

381

(b) Each appropriate county auditor;

382

(c) The person requesting the business.

383

(3) If all of the appropriate boards of township trustees and	384
boards of county commissioners adopt a resolution approving the	385
request to operate a business, the person making the request may	386
establish the requested business.	387

(C) The amount of land that is used for either purpose	388
authorized under division (A) of this section shall be included	389
when determining if the acreage requirement established under	390
division (B) of section 931.02 of the Revised Code is satisfied.	391

Sec. 931.99. Whoever violates division (A)(2) of section	392
931.07 of the Revised Code or section 931.08 of the Revised Code	393
shall be fined five hundred dollars for violation of each section.	394
The clerk of the court that receives payment of the fine money	395
shall forward half of the money to the board of township trustees	396
of the township and half of the money to the board of county	397
commissioners of the county in which the applicable agricultural	398
security area is located.	399

In the case of an agricultural security area that is located	400
in more than one township, the clerk shall divide half of the fine	401
money in equal shares among the townships and shall forward the	402
appropriate portion to each board of township trustees. In the	403
case of an agricultural security area that is located in more than	404
one county, the clerk shall divide half of the fine money in equal	405
shares among the counties and shall forward the appropriate	406
portion to each board of county commissioners.	407

A board of township trustees or a board of county	408
commissioners may, but is not required to, use the fine money	409
received under this section for farmland preservation purposes.	410

Sec. 5709.28. As used in this section, "qualifying	411
agricultural real property" means a building, structure,	412
improvement, or fixture that is used exclusively for agricultural	413
purposes, that is located on land enrolled in an agricultural	414
security area established under Chapter 931. of the Revised Code,	415
and for which the aggregate new investment has a true value in	416
money of twenty-five thousand dollars or more.	417

At the time of the establishment or renewal of an	418
agricultural security area or at any time during which land is	419
enrolled in an agricultural security area, a percentage of the	420
taxable value of qualifying agricultural real property first	421
appearing on the real and public utility property tax list in a	422
tax year during the enrollment may be exempted from taxation. The	423
board of township trustees of each township in which the land that	424
is enrolled in the agricultural security area is located and the	425
board of county commissioners of each county in which the land is	426
located shall confer with each other and reach an agreement	427
concerning the tax exemption. At the time the agreement is	428
reached, the boards shall send written notice of the agreement to	429
the superintendent of each school district within the agricultural	430
security area. After the agreement is reached and the tax	431
exemption is granted, the qualifying agricultural real property	432
shall become exempt in the tax year following the year in which	433
the construction of the property is completed.	434

The agreement shall establish the percentage of the taxable	435
value of qualifying agricultural real property that is to be	436
exempted from taxation and the number of years that the tax	437
exemption will apply to that property. The agreement may specify	438
that the tax years during which the exemption will apply to the	439
property may extend past the scheduled expiration date of the	440
period of enrollment in the agricultural security area, provided	441
that the enrollment is renewed and otherwise continues during the	442
tax years that the exemption applies. The agreement shall not	443
exempt from taxation more than seventy-five per cent of the	444
taxable value of the qualifying agricultural real property. In	445
addition, the agreement may establish the maximum amount of the	446
value of the qualifying agricultural real property to which the	447
tax exemption may apply. Subsequent to the agreement establishing	448
that maximum amount, the owner of the property may request the	449
applicable boards to alter the agreement and increase the maximum	450
value of the property to which the tax exemption applies. The	451
agreement shall be reviewed annually by the tax incentive review	452
council in accordance with section 5709.85 of the Revised Code.	453

Each time that a renewal application is filed for an	454
agricultural security area that involves qualifying agricultural	455
real property that has been the subject of an exemption that	456
expired on or before the date on which the previous period of	457
enrollment in an agricultural security area expired, the	458
applicable boards shall reach a new agreement concerning the	459
exemption before any of the boards adopts a resolution either	460
approving or rejecting the renewal application.	461

The county auditor shall enter on the list of property	462
described in section 5713.07 of the Revised Code that is exempt	463
from taxation any qualifying agricultural real property that is	464
the subject of an exemption under this section. An application	465
shall not be required to be filed under section 5715.27 of the	466
Revised Code with respect to the exemption. The county auditor	467
shall remove the qualifying agricultural real property from the	468
list at the time that the county auditor discovers or is notified	469
under section 931.07 of the Revised Code that a withdrawal,	470
removal, or conversion of land from an agricultural security area	471
has occurred in a way that makes the qualifying agricultural real	472
property no longer eligible for the exemption.	473

If the county auditor removes qualifying agricultural real	474
property from the list of property that is exempt from taxation	475
and the owner of the removed property claimed a tax exemption	476
established under this section for a prior tax year, the amount of	477
tax otherwise imposed on the qualifying agricultural real property	478
that was the subject of the exemption shall be increased. The	479
amount of the increase shall equal the aggregate value of the tax	480
exemption received by the taxpayer under this section since the	481
agricultural security area was most recently approved for	482
establishment or renewal, as applicable, plus interest on that	483
amount at the average bank prime rate, as determined under section	484
929.02 of the Revised Code, at the time that the county auditor	485
removes the property from the list of property that is exempt from	486
taxation. The tax year in which the increase shall occur is	487
dependent upon the date on which the county auditor makes a	488
discovery or is notified under section 931.07 of the Revised Code	489
that a withdrawal, removal, or conversion of land from an	490
agricultural security area has occurred. If the discovery or	491
notification occurs prior to the date in a tax year on which the	492
county auditor delivers a copy of the general tax list to the	493
county treasurer under section 319.28 of the Revised Code, the	494
increase shall occur in the same tax year that the discovery or	495
notification occurred. If the discovery or notification occurs on	496
or after the date in a tax year on which the copy of the general	497
tax list is delivered to the county treasurer, the increase shall	498
occur in the tax year that immediately follows the year in which	499
the discovery or notification occurred.	500

Section 2. That existing sections 931.02, 931.03, 931.04,	501
931.99, and 5709.28 of the Revised Code are hereby repealed.	502