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To amend sections 5709.62, 5709.63, and 5709.632 of | 1 |
the Revised Code to extend the authority of | 2 |
municipal corporations and counties to enter into | 3 |
enterprise zone agreements with businesses until | 4 |
October 15, 2015, and to establish an enterprise | 5 |
zone program review council to evaluate the | 6 |
effectiveness of the enterprise zone program and | 7 |
make recommendations as to its renewal. | 8 |
Section 1. That sections 5709.62, 5709.63, and 5709.632 of | 9 |
the Revised Code be amended to read as follows: | 10 |
Sec. 5709.62. (A) In any municipal corporation that is | 11 |
defined by the United States office of management and budget as a | 12 |
principal city of a metropolitan statistical area, the legislative | 13 |
authority of the municipal corporation may designate one or more | 14 |
areas within its municipal corporation as proposed enterprise | 15 |
zones. Upon designating an area, the legislative authority shall | 16 |
petition the director of development services for certification of | 17 |
the area as having the characteristics set forth in division | 18 |
(A)(1) of section 5709.61 of the Revised Code as amended by | 19 |
Substitute Senate Bill No. 19 of the 120th general assembly. | 20 |
Except as otherwise provided in division (E) of this section, on | 21 |
and after July 1, 1994, legislative authorities shall not enter | 22 |
into agreements under this section unless the legislative | 23 |
authority has petitioned the director and the director has | 24 |
certified the zone under this section as amended by that act; | 25 |
however, all agreements entered into under this section as it | 26 |
existed prior to July 1, 1994, and the incentives granted under | 27 |
those agreements shall remain in effect for the period agreed to | 28 |
under those agreements. Within sixty days after receiving such a | 29 |
petition, the director shall determine whether the area has the | 30 |
characteristics set forth in division (A)(1) of section 5709.61 of | 31 |
the Revised Code, and shall forward the findings to the | 32 |
legislative authority of the municipal corporation. If the | 33 |
director certifies the area as having those characteristics, and | 34 |
thereby certifies it as a zone, the legislative authority may | 35 |
enter into an agreement with an enterprise under division (C) of | 36 |
this section. | 37 |
(B) Any enterprise that wishes to enter into an agreement | 38 |
with a municipal corporation under division (C) of this section | 39 |
shall submit a proposal to the legislative authority of the | 40 |
municipal corporation on a form prescribed by the director of | 41 |
development services, together with the application fee | 42 |
established under section 5709.68 of the Revised Code. The form | 43 |
shall require the following information: | 44 |
(1) An estimate of the number of new employees whom the | 45 |
enterprise intends to hire, or of the number of employees whom the | 46 |
enterprise intends to retain, within the zone at a facility that | 47 |
is a project site, and an estimate of the amount of payroll of the | 48 |
enterprise attributable to these employees; | 49 |
(2) An estimate of the amount to be invested by the | 50 |
enterprise to establish, expand, renovate, or occupy a facility, | 51 |
including investment in new buildings, additions or improvements | 52 |
to existing buildings, machinery, equipment, furniture, fixtures, | 53 |
and inventory; | 54 |
(3) A listing of the enterprise's current investment, if any, | 55 |
in a facility as of the date of the proposal's submission. | 56 |
The enterprise shall review and update the listings required | 57 |
under this division to reflect material changes, and any agreement | 58 |
entered into under division (C) of this section shall set forth | 59 |
final estimates and listings as of the time the agreement is | 60 |
entered into. The legislative authority may, on a separate form | 61 |
and at any time, require any additional information necessary to | 62 |
determine whether an enterprise is in compliance with an agreement | 63 |
and to collect the information required to be reported under | 64 |
section 5709.68 of the Revised Code. | 65 |
(C) Upon receipt and investigation of a proposal under | 66 |
division (B) of this section, if the legislative authority finds | 67 |
that the enterprise submitting the proposal is qualified by | 68 |
financial responsibility and business experience to create and | 69 |
preserve employment opportunities in the zone and improve the | 70 |
economic climate of the municipal corporation, the legislative | 71 |
authority, on or before October 15, | 72 |
following: | 73 |
(1) Enter into an agreement with the enterprise under which | 74 |
the enterprise agrees to establish, expand, renovate, or occupy a | 75 |
facility and hire new employees, or preserve employment | 76 |
opportunities for existing employees, in return for one or more of | 77 |
the following incentives: | 78 |
(a) Exemption for a specified number of years, not to exceed | 79 |
fifteen, of a specified portion, up to seventy-five per cent, of | 80 |
the assessed value of tangible personal property first used in | 81 |
business at the project site as a result of the agreement. If an | 82 |
exemption for inventory is specifically granted in the agreement | 83 |
pursuant to this division, the exemption applies to inventory | 84 |
required to be listed pursuant to sections 5711.15 and 5711.16 of | 85 |
the Revised Code, except that, in the instance of an expansion or | 86 |
other situations in which an enterprise was in business at the | 87 |
facility prior to the establishment of the zone, the inventory | 88 |
that is exempt is that amount or value of inventory in excess of | 89 |
the amount or value of inventory required to be listed in the | 90 |
personal property tax return of the enterprise in the return for | 91 |
the tax year in which the agreement is entered into. | 92 |
(b) Exemption for a specified number of years, not to exceed | 93 |
fifteen, of a specified portion, up to seventy-five per cent, of | 94 |
the increase in the assessed valuation of real property | 95 |
constituting the project site subsequent to formal approval of the | 96 |
agreement by the legislative authority; | 97 |
(c) Provision for a specified number of years, not to exceed | 98 |
fifteen, of any optional services or assistance that the municipal | 99 |
corporation is authorized to provide with regard to the project | 100 |
site. | 101 |
(2) Enter into an agreement under which the enterprise agrees | 102 |
to remediate an environmentally contaminated facility, to spend an | 103 |
amount equal to at least two hundred fifty per cent of the true | 104 |
value in money of the real property of the facility prior to | 105 |
remediation as determined for the purposes of property taxation to | 106 |
establish, expand, renovate, or occupy the remediated facility, | 107 |
and to hire new employees or preserve employment opportunities for | 108 |
existing employees at the remediated facility, in return for one | 109 |
or more of the following incentives: | 110 |
(a) Exemption for a specified number of years, not to exceed | 111 |
fifteen, of a specified portion, not to exceed fifty per cent, of | 112 |
the assessed valuation of the real property of the facility prior | 113 |
to remediation; | 114 |
(b) Exemption for a specified number of years, not to exceed | 115 |
fifteen, of a specified portion, not to exceed one hundred per | 116 |
cent, of the increase in the assessed valuation of the real | 117 |
property of the facility during or after remediation; | 118 |
(c) The incentive under division (C)(1)(a) of this section, | 119 |
except that the percentage of the assessed value of such property | 120 |
exempted from taxation shall not exceed one hundred per cent; | 121 |
(d) The incentive under division (C)(1)(c) of this section. | 122 |
(3) Enter into an agreement with an enterprise that plans to | 123 |
purchase and operate a large manufacturing facility that has | 124 |
ceased operation or announced its intention to cease operation, in | 125 |
return for exemption for a specified number of years, not to | 126 |
exceed fifteen, of a specified portion, up to one hundred per | 127 |
cent, of the assessed value of tangible personal property used in | 128 |
business at the project site as a result of the agreement, or of | 129 |
the assessed valuation of real property constituting the project | 130 |
site, or both. | 131 |
(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this | 132 |
section, the portion of the assessed value of tangible personal | 133 |
property or of the increase in the assessed valuation of real | 134 |
property exempted from taxation under those divisions may exceed | 135 |
seventy-five per cent in any year for which that portion is | 136 |
exempted if the average percentage exempted for all years in which | 137 |
the agreement is in effect does not exceed sixty per cent, or if | 138 |
the board of education of the city, local, or exempted village | 139 |
school district within the territory of which the property is or | 140 |
will be located approves a percentage in excess of seventy-five | 141 |
per cent. | 142 |
(2) Notwithstanding any provision of the Revised Code to the | 143 |
contrary, the exemptions described in divisions (C)(1)(a), (b), | 144 |
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may | 145 |
be for up to fifteen years if the board of education of the city, | 146 |
local, or exempted village school district within the territory of | 147 |
which the property is or will be located approves a number of | 148 |
years in excess of ten. | 149 |
(3) For the purpose of obtaining the approval of a city, | 150 |
local, or exempted village school district under division (D)(1) | 151 |
or (2) of this section, the legislative authority shall deliver to | 152 |
the board of education a notice not later than forty-five days | 153 |
prior to approving the agreement, excluding Saturdays, Sundays, | 154 |
and legal holidays as defined in section 1.14 of the Revised Code. | 155 |
The notice shall state the percentage to be exempted, an estimate | 156 |
of the true value of the property to be exempted, and the number | 157 |
of years the property is to be exempted. The board of education, | 158 |
by resolution adopted by a majority of the board, shall approve or | 159 |
disapprove the agreement and certify a copy of the resolution to | 160 |
the legislative authority not later than fourteen days prior to | 161 |
the date stipulated by the legislative authority as the date upon | 162 |
which approval of the agreement is to be formally considered by | 163 |
the legislative authority. The board of education may include in | 164 |
the resolution conditions under which the board would approve the | 165 |
agreement, including the execution of an agreement to compensate | 166 |
the school district under division (B) of section 5709.82 of the | 167 |
Revised Code. The legislative authority may approve the agreement | 168 |
at any time after the board of education certifies its resolution | 169 |
approving the agreement to the legislative authority, or, if the | 170 |
board approves the agreement conditionally, at any time after the | 171 |
conditions are agreed to by the board and the legislative | 172 |
authority. | 173 |
If a board of education has adopted a resolution waiving its | 174 |
right to approve agreements and the resolution remains in effect, | 175 |
approval of an agreement by the board is not required under this | 176 |
division. If a board of education has adopted a resolution | 177 |
allowing a legislative authority to deliver the notice required | 178 |
under this division fewer than forty-five business days prior to | 179 |
the legislative authority's approval of the agreement, the | 180 |
legislative authority shall deliver the notice to the board not | 181 |
later than the number of days prior to such approval as prescribed | 182 |
by the board in its resolution. If a board of education adopts a | 183 |
resolution waiving its right to approve agreements or shortening | 184 |
the notification period, the board shall certify a copy of the | 185 |
resolution to the legislative authority. If the board of education | 186 |
rescinds such a resolution, it shall certify notice of the | 187 |
rescission to the legislative authority. | 188 |
(4) The legislative authority shall comply with section | 189 |
5709.83 of the Revised Code unless the board of education has | 190 |
adopted a resolution under that section waiving its right to | 191 |
receive such notice. | 192 |
(E) This division applies to zones certified by the director | 193 |
of development services under this section prior to July 22, 1994. | 194 |
On or before October 15, | 195 |
that designated a zone to which this division applies may enter | 196 |
into an agreement with an enterprise if the legislative authority | 197 |
finds that the enterprise satisfies one of the criteria described | 198 |
in divisions (E)(1) to (5) of this section: | 199 |
(1) The enterprise currently has no operations in this state | 200 |
and, subject to approval of the agreement, intends to establish | 201 |
operations in the zone; | 202 |
(2) The enterprise currently has operations in this state | 203 |
and, subject to approval of the agreement, intends to establish | 204 |
operations at a new location in the zone that would not result in | 205 |
a reduction in the number of employee positions at any of the | 206 |
enterprise's other locations in this state; | 207 |
(3) The enterprise, subject to approval of the agreement, | 208 |
intends to relocate operations, currently located in another | 209 |
state, to the zone; | 210 |
(4) The enterprise, subject to approval of the agreement, | 211 |
intends to expand operations at an existing site in the zone that | 212 |
the enterprise currently operates; | 213 |
(5) The enterprise, subject to approval of the agreement, | 214 |
intends to relocate operations, currently located in this state, | 215 |
to the zone, and the director of development services has issued a | 216 |
waiver for the enterprise under division (B) of section 5709.633 | 217 |
of the Revised Code. | 218 |
The agreement shall require the enterprise to agree to | 219 |
establish, expand, renovate, or occupy a facility in the zone and | 220 |
hire new employees, or preserve employment opportunities for | 221 |
existing employees, in return for one or more of the incentives | 222 |
described in division (C) of this section. | 223 |
(F) All agreements entered into under this section shall be | 224 |
in the form prescribed under section 5709.631 of the Revised Code. | 225 |
After an agreement is entered into under this section, if the | 226 |
legislative authority revokes its designation of a zone, or if the | 227 |
director of development services revokes a zone's certification, | 228 |
any entitlements granted under the agreement shall continue for | 229 |
the number of years specified in the agreement. | 230 |
(G) Except as otherwise provided in this division, an | 231 |
agreement entered into under this section shall require that the | 232 |
enterprise pay an annual fee equal to the greater of one per cent | 233 |
of the dollar value of incentives offered under the agreement or | 234 |
five hundred dollars; provided, however, that if the value of the | 235 |
incentives exceeds two hundred fifty thousand dollars, the fee | 236 |
shall not exceed two thousand five hundred dollars. The fee shall | 237 |
be payable to the legislative authority once per year for each | 238 |
year the agreement is effective on the days and in the form | 239 |
specified in the agreement. Fees paid shall be deposited in a | 240 |
special fund created for such purpose by the legislative authority | 241 |
and shall be used by the legislative authority exclusively for the | 242 |
purpose of complying with section 5709.68 of the Revised Code and | 243 |
by the tax incentive review council created under section 5709.85 | 244 |
of the Revised Code exclusively for the purposes of performing the | 245 |
duties prescribed under that section. The legislative authority | 246 |
may waive or reduce the amount of the fee charged against an | 247 |
enterprise, but such a waiver or reduction does not affect the | 248 |
obligations of the legislative authority or the tax incentive | 249 |
review council to comply with section 5709.68 or 5709.85 of the | 250 |
Revised Code. | 251 |
(H) When an agreement is entered into pursuant to this | 252 |
section, the legislative authority authorizing the agreement shall | 253 |
forward a copy of the agreement to the director of development | 254 |
services and to the tax commissioner within fifteen days after the | 255 |
agreement is entered into. If any agreement includes terms not | 256 |
provided for in section 5709.631 of the Revised Code affecting the | 257 |
revenue of a city, local, or exempted village school district or | 258 |
causing revenue to be forgone by the district, including any | 259 |
compensation to be paid to the school district pursuant to section | 260 |
5709.82 of the Revised Code, those terms also shall be forwarded | 261 |
in writing to the director of development services along with the | 262 |
copy of the agreement forwarded under this division. | 263 |
(I) After an agreement is entered into, the enterprise shall | 264 |
file with each personal property tax return required to be filed, | 265 |
or annual report required to be filed under section 5727.08 of the | 266 |
Revised Code, while the agreement is in effect, an informational | 267 |
return, on a form prescribed by the tax commissioner for that | 268 |
purpose, setting forth separately the property, and related costs | 269 |
and values, exempted from taxation under the agreement. | 270 |
(J) Enterprises may agree to give preference to residents of | 271 |
the zone within which the agreement applies relative to residents | 272 |
of this state who do not reside in the zone when hiring new | 273 |
employees under the agreement. | 274 |
(K) An agreement entered into under this section may include | 275 |
a provision requiring the enterprise to create one or more | 276 |
temporary internship positions for students enrolled in a course | 277 |
of study at a school or other educational institution in the | 278 |
vicinity, and to create a scholarship or provide another form of | 279 |
educational financial assistance for students holding such a | 280 |
position in exchange for the student's commitment to work for the | 281 |
enterprise at the completion of the internship. | 282 |
(L) The tax commissioner's authority in determining the | 283 |
accuracy of any exemption granted by an agreement entered into | 284 |
under this section is limited to divisions (C)(1)(a) and (b), | 285 |
(C)(2)(a), (b), and (c), (C)(3), (D), and (I) of this section and | 286 |
divisions (B)(1) to (10) of section 5709.631 of the Revised Code | 287 |
and, as authorized by law, to enforcing any modification to, or | 288 |
revocation of, that agreement by the legislative authority of a | 289 |
municipal corporation or the director of development services. | 290 |
Sec. 5709.63. (A) With the consent of the legislative | 291 |
authority of each affected municipal corporation or of a board of | 292 |
township trustees, a board of county commissioners may, in the | 293 |
manner set forth in section 5709.62 of the Revised Code, designate | 294 |
one or more areas in one or more municipal corporations or in | 295 |
unincorporated areas of the county as proposed enterprise zones. A | 296 |
board of county commissioners may designate no more than one area | 297 |
within a township, or within adjacent townships, as a proposed | 298 |
enterprise zone. The board shall petition the director of | 299 |
development services for certification of the area as having the | 300 |
characteristics set forth in division (A)(1) or (2) of section | 301 |
5709.61 of the Revised Code as amended by Substitute Senate Bill | 302 |
No. 19 of the 120th general assembly. Except as otherwise provided | 303 |
in division (D) of this section, on and after July 1, 1994, boards | 304 |
of county commissioners shall not enter into agreements under this | 305 |
section unless the board has petitioned the director and the | 306 |
director has certified the zone under this section as amended by | 307 |
that act; however, all agreements entered into under this section | 308 |
as it existed prior to July 1, 1994, and the incentives granted | 309 |
under those agreements shall remain in effect for the period | 310 |
agreed to under those agreements. The director shall make the | 311 |
determination in the manner provided under section 5709.62 of the | 312 |
Revised Code. | 313 |
Any enterprise wishing to enter into an agreement with the | 314 |
board under division (B) or (D) of this section shall submit a | 315 |
proposal to the board on the form and accompanied by the | 316 |
application fee prescribed under division (B) of section 5709.62 | 317 |
of the Revised Code. The enterprise shall review and update the | 318 |
estimates and listings required by the form in the manner required | 319 |
under that division. The board may, on a separate form and at any | 320 |
time, require any additional information necessary to determine | 321 |
whether an enterprise is in compliance with an agreement and to | 322 |
collect the information required to be reported under section | 323 |
5709.68 of the Revised Code. | 324 |
(B) If the board of county commissioners finds that an | 325 |
enterprise submitting a proposal is qualified by financial | 326 |
responsibility and business experience to create and preserve | 327 |
employment opportunities in the zone and to improve the economic | 328 |
climate of the municipal corporation or municipal corporations or | 329 |
the unincorporated areas in which the zone is located and to which | 330 |
the proposal applies, the board, on or before October 15, | 331 |
2015, and with the consent of the legislative authority of each | 332 |
affected municipal corporation or of the board of township | 333 |
trustees may do either of the following: | 334 |
(1) Enter into an agreement with the enterprise under which | 335 |
the enterprise agrees to establish, expand, renovate, or occupy a | 336 |
facility in the zone and hire new employees, or preserve | 337 |
employment opportunities for existing employees, in return for the | 338 |
following incentives: | 339 |
(a) When the facility is located in a municipal corporation, | 340 |
the board may enter into an agreement for one or more of the | 341 |
incentives provided in division (C) of section 5709.62 of the | 342 |
Revised Code, subject to division (D) of that section; | 343 |
(b) When the facility is located in an unincorporated area, | 344 |
the board may enter into an agreement for one or more of the | 345 |
following incentives: | 346 |
(i) Exemption for a specified number of years, not to exceed | 347 |
fifteen, of a specified portion, up to sixty per cent, of the | 348 |
assessed value of tangible personal property first used in | 349 |
business at a project site as a result of the agreement. If an | 350 |
exemption for inventory is specifically granted in the agreement | 351 |
pursuant to this division, the exemption applies to inventory | 352 |
required to be listed pursuant to sections 5711.15 and 5711.16 of | 353 |
the Revised Code, except, in the instance of an expansion or other | 354 |
situations in which an enterprise was in business at the facility | 355 |
prior to the establishment of the zone, the inventory that is | 356 |
exempt is that amount or value of inventory in excess of the | 357 |
amount or value of inventory required to be listed in the personal | 358 |
property tax return of the enterprise in the return for the tax | 359 |
year in which the agreement is entered into. | 360 |
(ii) Exemption for a specified number of years, not to exceed | 361 |
fifteen, of a specified portion, up to sixty per cent, of the | 362 |
increase in the assessed valuation of real property constituting | 363 |
the project site subsequent to formal approval of the agreement by | 364 |
the board; | 365 |
(iii) Provision for a specified number of years, not to | 366 |
exceed fifteen, of any optional services or assistance the board | 367 |
is authorized to provide with regard to the project site; | 368 |
(iv) The incentive described in division (C)(2) of section | 369 |
5709.62 of the Revised Code. | 370 |
(2) Enter into an agreement with an enterprise that plans to | 371 |
purchase and operate a large manufacturing facility that has | 372 |
ceased operation or has announced its intention to cease | 373 |
operation, in return for exemption for a specified number of | 374 |
years, not to exceed fifteen, of a specified portion, up to one | 375 |
hundred per cent, of tangible personal property used in business | 376 |
at the project site as a result of the agreement, or of real | 377 |
property constituting the project site, or both. | 378 |
(C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of | 379 |
this section, the portion of the assessed value of tangible | 380 |
personal property or of the increase in the assessed valuation of | 381 |
real property exempted from taxation under those divisions may | 382 |
exceed sixty per cent in any year for which that portion is | 383 |
exempted if the average percentage exempted for all years in which | 384 |
the agreement is in effect does not exceed fifty per cent, or if | 385 |
the board of education of the city, local, or exempted village | 386 |
school district within the territory of which the property is or | 387 |
will be located approves a percentage in excess of sixty per cent. | 388 |
(b) Notwithstanding any provision of the Revised Code to the | 389 |
contrary, the exemptions described in divisions (B)(1)(b)(i), | 390 |
(ii), (iii), and (iv) and (B)(2) of this section may be for up to | 391 |
fifteen years if the board of education of the city, local, or | 392 |
exempted village school district within the territory of which the | 393 |
property is or will be located approves a number of years in | 394 |
excess of ten. | 395 |
(c) For the purpose of obtaining the approval of a city, | 396 |
local, or exempted village school district under division | 397 |
(C)(1)(a) or (b) of this section, the board of county | 398 |
commissioners shall deliver to the board of education a notice not | 399 |
later than forty-five days prior to approving the agreement, | 400 |
excluding Saturdays, Sundays, and legal holidays as defined in | 401 |
section 1.14 of the Revised Code. The notice shall state the | 402 |
percentage to be exempted, an estimate of the true value of the | 403 |
property to be exempted, and the number of years the property is | 404 |
to be exempted. The board of education, by resolution adopted by a | 405 |
majority of the board, shall approve or disapprove the agreement | 406 |
and certify a copy of the resolution to the board of county | 407 |
commissioners not later than fourteen days prior to the date | 408 |
stipulated by the board of county commissioners as the date upon | 409 |
which approval of the agreement is to be formally considered by | 410 |
the board of county commissioners. The board of education may | 411 |
include in the resolution conditions under which the board would | 412 |
approve the agreement, including the execution of an agreement to | 413 |
compensate the school district under division (B) of section | 414 |
5709.82 of the Revised Code. The board of county commissioners may | 415 |
approve the agreement at any time after the board of education | 416 |
certifies its resolution approving the agreement to the board of | 417 |
county commissioners, or, if the board of education approves the | 418 |
agreement conditionally, at any time after the conditions are | 419 |
agreed to by the board of education and the board of county | 420 |
commissioners. | 421 |
If a board of education has adopted a resolution waiving its | 422 |
right to approve agreements and the resolution remains in effect, | 423 |
approval of an agreement by the board of education is not required | 424 |
under division (C) of this section. If a board of education has | 425 |
adopted a resolution allowing a board of county commissioners to | 426 |
deliver the notice required under this division fewer than | 427 |
forty-five business days prior to approval of the agreement by the | 428 |
board of county commissioners, the board of county commissioners | 429 |
shall deliver the notice to the board of education not later than | 430 |
the number of days prior to such approval as prescribed by the | 431 |
board of education in its resolution. If a board of education | 432 |
adopts a resolution waiving its right to approve agreements or | 433 |
shortening the notification period, the board of education shall | 434 |
certify a copy of the resolution to the board of county | 435 |
commissioners. If the board of education rescinds such a | 436 |
resolution, it shall certify notice of the rescission to the board | 437 |
of county commissioners. | 438 |
(2) The board of county commissioners shall comply with | 439 |
section 5709.83 of the Revised Code unless the board of education | 440 |
has adopted a resolution under that section waiving its right to | 441 |
receive such notice. | 442 |
(D) This division applies to zones certified by the director | 443 |
of development services under this section prior to July 22, 1994. | 444 |
On or before October 15, | 445 |
the legislative authority of each affected municipal corporation | 446 |
or board of township trustees of each affected township, the board | 447 |
of county commissioners that designated a zone to which this | 448 |
division applies may enter into an agreement with an enterprise if | 449 |
the board finds that the enterprise satisfies one of the criteria | 450 |
described in divisions (D)(1) to (5) of this section: | 451 |
(1) The enterprise currently has no operations in this state | 452 |
and, subject to approval of the agreement, intends to establish | 453 |
operations in the zone; | 454 |
(2) The enterprise currently has operations in this state | 455 |
and, subject to approval of the agreement, intends to establish | 456 |
operations at a new location in the zone that would not result in | 457 |
a reduction in the number of employee positions at any of the | 458 |
enterprise's other locations in this state; | 459 |
(3) The enterprise, subject to approval of the agreement, | 460 |
intends to relocate operations, currently located in another | 461 |
state, to the zone; | 462 |
(4) The enterprise, subject to approval of the agreement, | 463 |
intends to expand operations at an existing site in the zone that | 464 |
the enterprise currently operates; | 465 |
(5) The enterprise, subject to approval of the agreement, | 466 |
intends to relocate operations, currently located in this state, | 467 |
to the zone, and the director of development services has issued a | 468 |
waiver for the enterprise under division (B) of section 5709.633 | 469 |
of the Revised Code. | 470 |
The agreement shall require the enterprise to agree to | 471 |
establish, expand, renovate, or occupy a facility in the zone and | 472 |
hire new employees, or preserve employment opportunities for | 473 |
existing employees, in return for one or more of the incentives | 474 |
described in division (B) of this section. | 475 |
(E) All agreements entered into under this section shall be | 476 |
in the form prescribed under section 5709.631 of the Revised Code. | 477 |
After an agreement under this section is entered into, if the | 478 |
board of county commissioners revokes its designation of a zone, | 479 |
or if the director of development services revokes a zone's | 480 |
certification, any entitlements granted under the agreement shall | 481 |
continue for the number of years specified in the agreement. | 482 |
(F) Except as otherwise provided in this division, an | 483 |
agreement entered into under this section shall require that the | 484 |
enterprise pay an annual fee equal to the greater of one per cent | 485 |
of the dollar value of incentives offered under the agreement or | 486 |
five hundred dollars; provided, however, that if the value of the | 487 |
incentives exceeds two hundred fifty thousand dollars, the fee | 488 |
shall not exceed two thousand five hundred dollars. The fee shall | 489 |
be payable to the board of county commissioners once per year for | 490 |
each year the agreement is effective on the days and in the form | 491 |
specified in the agreement. Fees paid shall be deposited in a | 492 |
special fund created for such purpose by the board and shall be | 493 |
used by the board exclusively for the purpose of complying with | 494 |
section 5709.68 of the Revised Code and by the tax incentive | 495 |
review council created under section 5709.85 of the Revised Code | 496 |
exclusively for the purposes of performing the duties prescribed | 497 |
under that section. The board may waive or reduce the amount of | 498 |
the fee charged against an enterprise, but such waiver or | 499 |
reduction does not affect the obligations of the board or the tax | 500 |
incentive review council to comply with section 5709.68 or 5709.85 | 501 |
of the Revised Code, respectively. | 502 |
(G) With the approval of the legislative authority of a | 503 |
municipal corporation or the board of township trustees of a | 504 |
township in which a zone is designated under division (A) of this | 505 |
section, the board of county commissioners may delegate to that | 506 |
legislative authority or board any powers and duties of the board | 507 |
of county commissioners to negotiate and administer agreements | 508 |
with regard to that zone under this section. | 509 |
(H) When an agreement is entered into pursuant to this | 510 |
section, the board of county commissioners authorizing the | 511 |
agreement or the legislative authority or board of township | 512 |
trustees that negotiates and administers the agreement shall | 513 |
forward a copy of the agreement to the director of development | 514 |
services and to the tax commissioner within fifteen days after the | 515 |
agreement is entered into. If any agreement includes terms not | 516 |
provided for in section 5709.631 of the Revised Code affecting the | 517 |
revenue of a city, local, or exempted village school district or | 518 |
causing revenue to be foregone by the district, including any | 519 |
compensation to be paid to the school district pursuant to section | 520 |
5709.82 of the Revised Code, those terms also shall be forwarded | 521 |
in writing to the director of development services along with the | 522 |
copy of the agreement forwarded under this division. | 523 |
(I) After an agreement is entered into, the enterprise shall | 524 |
file with each personal property tax return required to be filed, | 525 |
or annual report that is required to be filed under section | 526 |
5727.08 of the Revised Code, while the agreement is in effect, an | 527 |
informational return, on a form prescribed by the tax commissioner | 528 |
for that purpose, setting forth separately the property, and | 529 |
related costs and values, exempted from taxation under the | 530 |
agreement. | 531 |
(J) Enterprises may agree to give preference to residents of | 532 |
the zone within which the agreement applies relative to residents | 533 |
of this state who do not reside in the zone when hiring new | 534 |
employees under the agreement. | 535 |
(K) An agreement entered into under this section may include | 536 |
a provision requiring the enterprise to create one or more | 537 |
temporary internship positions for students enrolled in a course | 538 |
of study at a school or other educational institution in the | 539 |
vicinity, and to create a scholarship or provide another form of | 540 |
educational financial assistance for students holding such a | 541 |
position in exchange for the student's commitment to work for the | 542 |
enterprise at the completion of the internship. | 543 |
(L) The tax commissioner's authority in determining the | 544 |
accuracy of any exemption granted by an agreement entered into | 545 |
under this section is limited to divisions (B)(1)(b)(i) and (ii), | 546 |
(B)(2), (C), and (I) of this section, division (B)(1)(b)(iv) of | 547 |
this section as it pertains to divisions (C)(2)(a), (b), and (c) | 548 |
of section 5709.62 of the Revised Code, and divisions (B)(1) to | 549 |
(10) of section 5709.631 of the Revised Code and, as authorized by | 550 |
law, to enforcing any modification to, or revocation of, that | 551 |
agreement by the board of county commissioners or the director of | 552 |
development services or, if the board's powers and duties are | 553 |
delegated under division (G) of this section, by the legislative | 554 |
authority of a municipal corporation or board of township | 555 |
trustees. | 556 |
Sec. 5709.632. (A)(1) The legislative authority of a | 557 |
municipal corporation defined by the United States office of | 558 |
management and budget as a principal city of a metropolitan | 559 |
statistical area may, in the manner set forth in section 5709.62 | 560 |
of the Revised Code, designate one or more areas in the municipal | 561 |
corporation as a proposed enterprise zone. | 562 |
(2) With the consent of the legislative authority of each | 563 |
affected municipal corporation or of a board of township trustees, | 564 |
a board of county commissioners may, in the manner set forth in | 565 |
section 5709.62 of the Revised Code, designate one or more areas | 566 |
in one or more municipal corporations or in unincorporated areas | 567 |
of the county as proposed urban jobs and enterprise zones, except | 568 |
that a board of county commissioners may designate no more than | 569 |
one area within a township, or within adjacent townships, as a | 570 |
proposed urban jobs and enterprise zone. | 571 |
(3) The legislative authority or board of county | 572 |
commissioners may petition the director of development services | 573 |
for certification of the area as having the characteristics set | 574 |
forth in division (A)(3) of section 5709.61 of the Revised Code. | 575 |
Within sixty days after receiving such a petition, the director | 576 |
shall determine whether the area has the characteristics set forth | 577 |
in that division and forward the findings to the legislative | 578 |
authority or board of county commissioners. If the director | 579 |
certifies the area as having those characteristics and thereby | 580 |
certifies it as a zone, the legislative authority or board may | 581 |
enter into agreements with enterprises under division (B) of this | 582 |
section. Any enterprise wishing to enter into an agreement with a | 583 |
legislative authority or board of county commissioners under this | 584 |
section and satisfying one of the criteria described in divisions | 585 |
(B)(1) to (5) of this section shall submit a proposal to the | 586 |
legislative authority or board on the form prescribed under | 587 |
division (B) of section 5709.62 of the Revised Code and shall | 588 |
review and update the estimates and listings required by the form | 589 |
in the manner required under that division. The legislative | 590 |
authority or board may, on a separate form and at any time, | 591 |
require any additional information necessary to determine whether | 592 |
an enterprise is in compliance with an agreement and to collect | 593 |
the information required to be reported under section 5709.68 of | 594 |
the Revised Code. | 595 |
(B) Prior to entering into an agreement with an enterprise, | 596 |
the legislative authority or board of county commissioners shall | 597 |
determine whether the enterprise submitting the proposal is | 598 |
qualified by financial responsibility and business experience to | 599 |
create and preserve employment opportunities in the zone and to | 600 |
improve the economic climate of the municipal corporation or | 601 |
municipal corporations or the unincorporated areas in which the | 602 |
zone is located and to which the proposal applies, and whether the | 603 |
enterprise satisfies one of the following criteria: | 604 |
(1) The enterprise currently has no operations in this state | 605 |
and, subject to approval of the agreement, intends to establish | 606 |
operations in the zone; | 607 |
(2) The enterprise currently has operations in this state | 608 |
and, subject to approval of the agreement, intends to establish | 609 |
operations at a new location in the zone that would not result in | 610 |
a reduction in the number of employee positions at any of the | 611 |
enterprise's other locations in this state; | 612 |
(3) The enterprise, subject to approval of the agreement, | 613 |
intends to relocate operations, currently located in another | 614 |
state, to the zone; | 615 |
(4) The enterprise, subject to approval of the agreement, | 616 |
intends to expand operations at an existing site in the zone that | 617 |
the enterprise currently operates; | 618 |
(5) The enterprise, subject to approval of the agreement, | 619 |
intends to relocate operations, currently located in this state, | 620 |
to the zone, and the director of development services has issued a | 621 |
waiver for the enterprise under division (B) of section 5709.633 | 622 |
of the Revised Code. | 623 |
(C) If the legislative authority or board determines that the | 624 |
enterprise is so qualified and satisfies one of the criteria | 625 |
described in divisions (B)(1) to (5) of this section, the | 626 |
legislative authority or board may, after complying with section | 627 |
5709.83 of the Revised Code and on or before October 15, | 628 |
2015, and, in the case of a board of commissioners, with the | 629 |
consent of the legislative authority of each affected municipal | 630 |
corporation or of the board of township trustees, enter into an | 631 |
agreement with the enterprise under which the enterprise agrees to | 632 |
establish, expand, renovate, or occupy a facility in the zone and | 633 |
hire new employees, or preserve employment opportunities for | 634 |
existing employees, in return for the following incentives: | 635 |
(1) When the facility is located in a municipal corporation, | 636 |
a legislative authority or board of commissioners may enter into | 637 |
an agreement for one or more of the incentives provided in | 638 |
division (C) of section 5709.62 of the Revised Code, subject to | 639 |
division (D) of that section; | 640 |
(2) When the facility is located in an unincorporated area, a | 641 |
board of commissioners may enter into an agreement for one or more | 642 |
of the incentives provided in divisions (B)(1)(b), (B)(2), and | 643 |
(B)(3) of section 5709.63 of the Revised Code, subject to division | 644 |
(C) of that section. | 645 |
(D) All agreements entered into under this section shall be | 646 |
in the form prescribed under section 5709.631 of the Revised Code. | 647 |
After an agreement under this section is entered into, if the | 648 |
legislative authority or board of county commissioners revokes its | 649 |
designation of the zone, or if the director of development | 650 |
services revokes the zone's certification, any entitlements | 651 |
granted under the agreement shall continue for the number of years | 652 |
specified in the agreement. | 653 |
(E) Except as otherwise provided in this division, an | 654 |
agreement entered into under this section shall require that the | 655 |
enterprise pay an annual fee equal to the greater of one per cent | 656 |
of the dollar value of incentives offered under the agreement or | 657 |
five hundred dollars; provided, however, that if the value of the | 658 |
incentives exceeds two hundred fifty thousand dollars, the fee | 659 |
shall not exceed two thousand five hundred dollars. The fee shall | 660 |
be payable to the legislative authority or board of commissioners | 661 |
once per year for each year the agreement is effective on the days | 662 |
and in the form specified in the agreement. Fees paid shall be | 663 |
deposited in a special fund created for such purpose by the | 664 |
legislative authority or board and shall be used by the | 665 |
legislative authority or board exclusively for the purpose of | 666 |
complying with section 5709.68 of the Revised Code and by the tax | 667 |
incentive review council created under section 5709.85 of the | 668 |
Revised Code exclusively for the purposes of performing the duties | 669 |
prescribed under that section. The legislative authority or board | 670 |
may waive or reduce the amount of the fee charged against an | 671 |
enterprise, but such waiver or reduction does not affect the | 672 |
obligations of the legislative authority or board or the tax | 673 |
incentive review council to comply with section 5709.68 or 5709.85 | 674 |
of the Revised Code, respectively. | 675 |
(F) With the approval of the legislative authority of a | 676 |
municipal corporation or the board of township trustees of a | 677 |
township in which a zone is designated under division (A)(2) of | 678 |
this section, the board of county commissioners may delegate to | 679 |
that legislative authority or board any powers and duties of the | 680 |
board to negotiate and administer agreements with regard to that | 681 |
zone under this section. | 682 |
(G) When an agreement is entered into pursuant to this | 683 |
section, the legislative authority or board of commissioners | 684 |
authorizing the agreement shall forward a copy of the agreement to | 685 |
the director of development services and to the tax commissioner | 686 |
within fifteen days after the agreement is entered into. If any | 687 |
agreement includes terms not provided for in section 5709.631 of | 688 |
the Revised Code affecting the revenue of a city, local, or | 689 |
exempted village school district or causing revenue to be forgone | 690 |
by the district, including any compensation to be paid to the | 691 |
school district pursuant to section 5709.82 of the Revised Code, | 692 |
those terms also shall be forwarded in writing to the director of | 693 |
development services along with the copy of the agreement | 694 |
forwarded under this division. | 695 |
(H) After an agreement is entered into, the enterprise shall | 696 |
file with each personal property tax return required to be filed | 697 |
while the agreement is in effect, an informational return, on a | 698 |
form prescribed by the tax commissioner for that purpose, setting | 699 |
forth separately the property, and related costs and values, | 700 |
exempted from taxation under the agreement. | 701 |
(I) An agreement entered into under this section may include | 702 |
a provision requiring the enterprise to create one or more | 703 |
temporary internship positions for students enrolled in a course | 704 |
of study at a school or other educational institution in the | 705 |
vicinity, and to create a scholarship or provide another form of | 706 |
educational financial assistance for students holding such a | 707 |
position in exchange for the student's commitment to work for the | 708 |
enterprise at the completion of the internship. | 709 |
Section 2. That existing sections 5709.62, 5709.63, and | 710 |
5709.632 of the Revised Code are hereby repealed. | 711 |
Section 3. There is hereby created an enterprise zone program | 712 |
review council for the purpose of evaluating and making | 713 |
recommendations with respect to the enterprise zone program | 714 |
authorized by sections 5709.61 to 5709.69 of the Revised Code. The | 715 |
council shall consist of two members of the House of | 716 |
Representatives appointed by the Speaker of the House of | 717 |
Representatives, one member of the House of Representatives | 718 |
appointed by the Minority Leader of the House of Representatives, | 719 |
two members of the Senate appointed by the President of the | 720 |
Senate, and one member of the Senate appointed by the Minority | 721 |
Leader of the Senate. | 722 |
The council shall review the positive and negative impacts of | 723 |
the enterprise zone program and evaluate its overall effectiveness | 724 |
in terms of achieving the initial goals of the program as well as | 725 |
generating a positive return on investment for participating | 726 |
political subdivisions. | 727 |
The council shall compile a report that makes recommendations | 728 |
as to whether to continue the enterprise zone program and, if so, | 729 |
whether any changes should be made to the program. The report | 730 |
shall be delivered to the Governor, the Speaker and Minority | 731 |
Leader of the House of Representatives, and the President and | 732 |
Minority Leader of the Senate on or before August 31, 2015. | 733 |
Upon delivery of the report, the council shall dissolve by | 734 |
operation of law. | 735 |