As Passed by the House

130th General Assembly
Regular Session
2013-2014
Am. S. B. No. 112


Senator Beagle 

Cosponsors: Senators LaRose, Lehner, Seitz, Uecker, Schaffer, Coley, Eklund, Hite, Oelslager, Patton, Peterson, Widener 

Representatives Adams, R., Anielski, Antonio, Ashford, Barborak, Barnes, Beck, Bishoff, Blessing, Brown, Budish, Burkley, Carney, Celebrezze, Conditt, Dovilla, Driehaus, Fedor, Gerberry, Green, Grossman, Hackett, Hagan, C., Hall, Hayes, Heard, Henne, Huffman, Johnson, Letson, McClain, McGregor, Milkovich, O'Brien, Pelanda, Pillich, Reece, Rogers, Romanchuk, Ruhl, Scherer, Smith, Sprague, Stinziano, Terhar, Winburn Speaker Batchelder 



A BILL
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


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

       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, 20132015, may do one of the 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, 20132015, the legislative authority 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, 2013331
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, 20132015, and with the consent of 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 services573
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, 2013628
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