As Reported by the House Economic Development and Regulatory Reform Committee

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 

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, 2015.5


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

       Section 1.  That sections 5709.62, 5709.63, and 5709.632 of 6
the Revised Code be amended to read as follows:7

       Sec. 5709.62.  (A) In any municipal corporation that is 8
defined by the United States office of management and budget as a 9
principal city of a metropolitan statistical area, the legislative 10
authority of the municipal corporation may designate one or more 11
areas within its municipal corporation as proposed enterprise 12
zones. Upon designating an area, the legislative authority shall 13
petition the director of development services for certification of 14
the area as having the characteristics set forth in division 15
(A)(1) of section 5709.61 of the Revised Code as amended by 16
Substitute Senate Bill No. 19 of the 120th general assembly. 17
Except as otherwise provided in division (E) of this section, on 18
and after July 1, 1994, legislative authorities shall not enter 19
into agreements under this section unless the legislative 20
authority has petitioned the director and the director has 21
certified the zone under this section as amended by that act; 22
however, all agreements entered into under this section as it 23
existed prior to July 1, 1994, and the incentives granted under 24
those agreements shall remain in effect for the period agreed to 25
under those agreements. Within sixty days after receiving such a 26
petition, the director shall determine whether the area has the 27
characteristics set forth in division (A)(1) of section 5709.61 of 28
the Revised Code, and shall forward the findings to the 29
legislative authority of the municipal corporation. If the 30
director certifies the area as having those characteristics, and 31
thereby certifies it as a zone, the legislative authority may 32
enter into an agreement with an enterprise under division (C) of 33
this section.34

       (B) Any enterprise that wishes to enter into an agreement 35
with a municipal corporation under division (C) of this section 36
shall submit a proposal to the legislative authority of the 37
municipal corporation on a form prescribed by the director of 38
development services, together with the application fee 39
established under section 5709.68 of the Revised Code. The form 40
shall require the following information:41

       (1) An estimate of the number of new employees whom the 42
enterprise intends to hire, or of the number of employees whom the 43
enterprise intends to retain, within the zone at a facility that 44
is a project site, and an estimate of the amount of payroll of the 45
enterprise attributable to these employees;46

       (2) An estimate of the amount to be invested by the 47
enterprise to establish, expand, renovate, or occupy a facility, 48
including investment in new buildings, additions or improvements 49
to existing buildings, machinery, equipment, furniture, fixtures, 50
and inventory;51

       (3) A listing of the enterprise's current investment, if any, 52
in a facility as of the date of the proposal's submission.53

       The enterprise shall review and update the listings required 54
under this division to reflect material changes, and any agreement 55
entered into under division (C) of this section shall set forth 56
final estimates and listings as of the time the agreement is 57
entered into. The legislative authority may, on a separate form 58
and at any time, require any additional information necessary to 59
determine whether an enterprise is in compliance with an agreement 60
and to collect the information required to be reported under 61
section 5709.68 of the Revised Code.62

       (C) Upon receipt and investigation of a proposal under 63
division (B) of this section, if the legislative authority finds 64
that the enterprise submitting the proposal is qualified by 65
financial responsibility and business experience to create and 66
preserve employment opportunities in the zone and improve the 67
economic climate of the municipal corporation, the legislative 68
authority, on or before October 15, 20132015, may do one of the 69
following:70

       (1) Enter into an agreement with the enterprise under which 71
the enterprise agrees to establish, expand, renovate, or occupy a 72
facility and hire new employees, or preserve employment 73
opportunities for existing employees, in return for one or more of 74
the following incentives:75

       (a) Exemption for a specified number of years, not to exceed 76
fifteen, of a specified portion, up to seventy-five per cent, of 77
the assessed value of tangible personal property first used in 78
business at the project site as a result of the agreement. If an 79
exemption for inventory is specifically granted in the agreement 80
pursuant to this division, the exemption applies to inventory 81
required to be listed pursuant to sections 5711.15 and 5711.16 of 82
the Revised Code, except that, in the instance of an expansion or 83
other situations in which an enterprise was in business at the 84
facility prior to the establishment of the zone, the inventory 85
that is exempt is that amount or value of inventory in excess of 86
the amount or value of inventory required to be listed in the 87
personal property tax return of the enterprise in the return for 88
the tax year in which the agreement is entered into.89

       (b) Exemption for a specified number of years, not to exceed 90
fifteen, of a specified portion, up to seventy-five per cent, of 91
the increase in the assessed valuation of real property 92
constituting the project site subsequent to formal approval of the 93
agreement by the legislative authority;94

       (c) Provision for a specified number of years, not to exceed 95
fifteen, of any optional services or assistance that the municipal 96
corporation is authorized to provide with regard to the project 97
site.98

       (2) Enter into an agreement under which the enterprise agrees 99
to remediate an environmentally contaminated facility, to spend an 100
amount equal to at least two hundred fifty per cent of the true 101
value in money of the real property of the facility prior to 102
remediation as determined for the purposes of property taxation to 103
establish, expand, renovate, or occupy the remediated facility, 104
and to hire new employees or preserve employment opportunities for 105
existing employees at the remediated facility, in return for one 106
or more of the following incentives:107

       (a) Exemption for a specified number of years, not to exceed 108
fifteen, of a specified portion, not to exceed fifty per cent, of 109
the assessed valuation of the real property of the facility prior 110
to remediation;111

       (b) Exemption for a specified number of years, not to exceed 112
fifteen, of a specified portion, not to exceed one hundred per 113
cent, of the increase in the assessed valuation of the real 114
property of the facility during or after remediation;115

       (c) The incentive under division (C)(1)(a) of this section, 116
except that the percentage of the assessed value of such property 117
exempted from taxation shall not exceed one hundred per cent;118

       (d) The incentive under division (C)(1)(c) of this section.119

       (3) Enter into an agreement with an enterprise that plans to 120
purchase and operate a large manufacturing facility that has 121
ceased operation or announced its intention to cease operation, in 122
return for exemption for a specified number of years, not to 123
exceed fifteen, of a specified portion, up to one hundred per 124
cent, of the assessed value of tangible personal property used in 125
business at the project site as a result of the agreement, or of 126
the assessed valuation of real property constituting the project 127
site, or both.128

       (D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this 129
section, the portion of the assessed value of tangible personal 130
property or of the increase in the assessed valuation of real 131
property exempted from taxation under those divisions may exceed 132
seventy-five per cent in any year for which that portion is 133
exempted if the average percentage exempted for all years in which 134
the agreement is in effect does not exceed sixty per cent, or if 135
the board of education of the city, local, or exempted village 136
school district within the territory of which the property is or 137
will be located approves a percentage in excess of seventy-five 138
per cent.139

       (2) Notwithstanding any provision of the Revised Code to the 140
contrary, the exemptions described in divisions (C)(1)(a), (b), 141
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may 142
be for up to fifteen years if the board of education of the city, 143
local, or exempted village school district within the territory of 144
which the property is or will be located approves a number of 145
years in excess of ten.146

       (3) For the purpose of obtaining the approval of a city, 147
local, or exempted village school district under division (D)(1) 148
or (2) of this section, the legislative authority shall deliver to 149
the board of education a notice not later than forty-five days 150
prior to approving the agreement, excluding Saturdays, Sundays, 151
and legal holidays as defined in section 1.14 of the Revised Code. 152
The notice shall state the percentage to be exempted, an estimate 153
of the true value of the property to be exempted, and the number 154
of years the property is to be exempted. The board of education, 155
by resolution adopted by a majority of the board, shall approve or 156
disapprove the agreement and certify a copy of the resolution to 157
the legislative authority not later than fourteen days prior to 158
the date stipulated by the legislative authority as the date upon 159
which approval of the agreement is to be formally considered by 160
the legislative authority. The board of education may include in 161
the resolution conditions under which the board would approve the 162
agreement, including the execution of an agreement to compensate 163
the school district under division (B) of section 5709.82 of the 164
Revised Code. The legislative authority may approve the agreement 165
at any time after the board of education certifies its resolution 166
approving the agreement to the legislative authority, or, if the 167
board approves the agreement conditionally, at any time after the 168
conditions are agreed to by the board and the legislative 169
authority.170

       If a board of education has adopted a resolution waiving its 171
right to approve agreements and the resolution remains in effect, 172
approval of an agreement by the board is not required under this 173
division. If a board of education has adopted a resolution 174
allowing a legislative authority to deliver the notice required 175
under this division fewer than forty-five business days prior to 176
the legislative authority's approval of the agreement, the 177
legislative authority shall deliver the notice to the board not 178
later than the number of days prior to such approval as prescribed 179
by the board in its resolution. If a board of education adopts a 180
resolution waiving its right to approve agreements or shortening 181
the notification period, the board shall certify a copy of the 182
resolution to the legislative authority. If the board of education 183
rescinds such a resolution, it shall certify notice of the 184
rescission to the legislative authority.185

       (4) The legislative authority shall comply with section 186
5709.83 of the Revised Code unless the board of education has 187
adopted a resolution under that section waiving its right to 188
receive such notice.189

       (E) This division applies to zones certified by the director 190
of development services under this section prior to July 22, 1994.191

       On or before October 15, 20132015, the legislative authority 192
that designated a zone to which this division applies may enter 193
into an agreement with an enterprise if the legislative authority 194
finds that the enterprise satisfies one of the criteria described 195
in divisions (E)(1) to (5) of this section:196

       (1) The enterprise currently has no operations in this state 197
and, subject to approval of the agreement, intends to establish 198
operations in the zone;199

       (2) The enterprise currently has operations in this state 200
and, subject to approval of the agreement, intends to establish 201
operations at a new location in the zone that would not result in 202
a reduction in the number of employee positions at any of the 203
enterprise's other locations in this state;204

       (3) The enterprise, subject to approval of the agreement, 205
intends to relocate operations, currently located in another 206
state, to the zone;207

       (4) The enterprise, subject to approval of the agreement, 208
intends to expand operations at an existing site in the zone that 209
the enterprise currently operates;210

       (5) The enterprise, subject to approval of the agreement, 211
intends to relocate operations, currently located in this state, 212
to the zone, and the director of development services has issued a 213
waiver for the enterprise under division (B) of section 5709.633 214
of the Revised Code.215

       The agreement shall require the enterprise to agree to 216
establish, expand, renovate, or occupy a facility in the zone and 217
hire new employees, or preserve employment opportunities for 218
existing employees, in return for one or more of the incentives 219
described in division (C) of this section.220

       (F) All agreements entered into under this section shall be 221
in the form prescribed under section 5709.631 of the Revised Code. 222
After an agreement is entered into under this section, if the 223
legislative authority revokes its designation of a zone, or if the 224
director of development services revokes a zone's certification, 225
any entitlements granted under the agreement shall continue for 226
the number of years specified in the agreement.227

       (G) Except as otherwise provided in this division, an 228
agreement entered into under this section shall require that the 229
enterprise pay an annual fee equal to the greater of one per cent 230
of the dollar value of incentives offered under the agreement or 231
five hundred dollars; provided, however, that if the value of the 232
incentives exceeds two hundred fifty thousand dollars, the fee 233
shall not exceed two thousand five hundred dollars. The fee shall 234
be payable to the legislative authority once per year for each 235
year the agreement is effective on the days and in the form 236
specified in the agreement. Fees paid shall be deposited in a 237
special fund created for such purpose by the legislative authority 238
and shall be used by the legislative authority exclusively for the 239
purpose of complying with section 5709.68 of the Revised Code and 240
by the tax incentive review council created under section 5709.85 241
of the Revised Code exclusively for the purposes of performing the 242
duties prescribed under that section. The legislative authority 243
may waive or reduce the amount of the fee charged against an 244
enterprise, but such a waiver or reduction does not affect the 245
obligations of the legislative authority or the tax incentive 246
review council to comply with section 5709.68 or 5709.85 of the 247
Revised Code.248

       (H) When an agreement is entered into pursuant to this 249
section, the legislative authority authorizing the agreement shall 250
forward a copy of the agreement to the director of development 251
services and to the tax commissioner within fifteen days after the 252
agreement is entered into. If any agreement includes terms not 253
provided for in section 5709.631 of the Revised Code affecting the 254
revenue of a city, local, or exempted village school district or 255
causing revenue to be forgone by the district, including any 256
compensation to be paid to the school district pursuant to section 257
5709.82 of the Revised Code, those terms also shall be forwarded 258
in writing to the director of development services along with the 259
copy of the agreement forwarded under this division.260

       (I) After an agreement is entered into, the enterprise shall 261
file with each personal property tax return required to be filed, 262
or annual report required to be filed under section 5727.08 of the 263
Revised Code, while the agreement is in effect, an informational 264
return, on a form prescribed by the tax commissioner for that 265
purpose, setting forth separately the property, and related costs 266
and values, exempted from taxation under the agreement.267

       (J) Enterprises may agree to give preference to residents of 268
the zone within which the agreement applies relative to residents 269
of this state who do not reside in the zone when hiring new 270
employees under the agreement.271

       (K) An agreement entered into under this section may include 272
a provision requiring the enterprise to create one or more 273
temporary internship positions for students enrolled in a course 274
of study at a school or other educational institution in the 275
vicinity, and to create a scholarship or provide another form of 276
educational financial assistance for students holding such a 277
position in exchange for the student's commitment to work for the 278
enterprise at the completion of the internship.279

       (L) The tax commissioner's authority in determining the 280
accuracy of any exemption granted by an agreement entered into 281
under this section is limited to divisions (C)(1)(a) and (b), 282
(C)(2)(a), (b), and (c), (C)(3), (D), and (I) of this section and 283
divisions (B)(1) to (10) of section 5709.631 of the Revised Code 284
and, as authorized by law, to enforcing any modification to, or 285
revocation of, that agreement by the legislative authority of a 286
municipal corporation or the director of development services.287

       Sec. 5709.63.  (A) With the consent of the legislative 288
authority of each affected municipal corporation or of a board of 289
township trustees, a board of county commissioners may, in the 290
manner set forth in section 5709.62 of the Revised Code, designate 291
one or more areas in one or more municipal corporations or in 292
unincorporated areas of the county as proposed enterprise zones. A 293
board of county commissioners may designate no more than one area 294
within a township, or within adjacent townships, as a proposed 295
enterprise zone. The board shall petition the director of 296
development services for certification of the area as having the 297
characteristics set forth in division (A)(1) or (2) of section 298
5709.61 of the Revised Code as amended by Substitute Senate Bill 299
No. 19 of the 120th general assembly. Except as otherwise provided 300
in division (D) of this section, on and after July 1, 1994, boards 301
of county commissioners shall not enter into agreements under this 302
section unless the board has petitioned the director and the 303
director has certified the zone under this section as amended by 304
that act; however, all agreements entered into under this section 305
as it existed prior to July 1, 1994, and the incentives granted 306
under those agreements shall remain in effect for the period 307
agreed to under those agreements. The director shall make the 308
determination in the manner provided under section 5709.62 of the 309
Revised Code.310

       Any enterprise wishing to enter into an agreement with the 311
board under division (B) or (D) of this section shall submit a 312
proposal to the board on the form and accompanied by the 313
application fee prescribed under division (B) of section 5709.62 314
of the Revised Code. The enterprise shall review and update the 315
estimates and listings required by the form in the manner required 316
under that division. The board may, on a separate form and at any 317
time, require any additional information necessary to determine 318
whether an enterprise is in compliance with an agreement and to 319
collect the information required to be reported under section 320
5709.68 of the Revised Code.321

       (B) If the board of county commissioners finds that an 322
enterprise submitting a proposal is qualified by financial 323
responsibility and business experience to create and preserve 324
employment opportunities in the zone and to improve the economic 325
climate of the municipal corporation or municipal corporations or 326
the unincorporated areas in which the zone is located and to which 327
the proposal applies, the board, on or before October 15, 2013328
2015, and with the consent of the legislative authority of each 329
affected municipal corporation or of the board of township 330
trustees may do either of the following:331

       (1) Enter into an agreement with the enterprise under which 332
the enterprise agrees to establish, expand, renovate, or occupy a 333
facility in the zone and hire new employees, or preserve 334
employment opportunities for existing employees, in return for the 335
following incentives:336

       (a) When the facility is located in a municipal corporation, 337
the board may enter into an agreement for one or more of the 338
incentives provided in division (C) of section 5709.62 of the 339
Revised Code, subject to division (D) of that section;340

       (b) When the facility is located in an unincorporated area, 341
the board may enter into an agreement for one or more of the 342
following incentives:343

       (i) Exemption for a specified number of years, not to exceed 344
fifteen, of a specified portion, up to sixty per cent, of the 345
assessed value of tangible personal property first used in 346
business at a project site as a result of the agreement. If an 347
exemption for inventory is specifically granted in the agreement 348
pursuant to this division, the exemption applies to inventory 349
required to be listed pursuant to sections 5711.15 and 5711.16 of 350
the Revised Code, except, in the instance of an expansion or other 351
situations in which an enterprise was in business at the facility 352
prior to the establishment of the zone, the inventory that is 353
exempt is that amount or value of inventory in excess of the 354
amount or value of inventory required to be listed in the personal 355
property tax return of the enterprise in the return for the tax 356
year in which the agreement is entered into.357

       (ii) Exemption for a specified number of years, not to exceed 358
fifteen, of a specified portion, up to sixty per cent, of the 359
increase in the assessed valuation of real property constituting 360
the project site subsequent to formal approval of the agreement by 361
the board;362

       (iii) Provision for a specified number of years, not to 363
exceed fifteen, of any optional services or assistance the board 364
is authorized to provide with regard to the project site;365

       (iv) The incentive described in division (C)(2) of section 366
5709.62 of the Revised Code.367

       (2) Enter into an agreement with an enterprise that plans to 368
purchase and operate a large manufacturing facility that has 369
ceased operation or has announced its intention to cease 370
operation, in return for exemption for a specified number of 371
years, not to exceed fifteen, of a specified portion, up to one 372
hundred per cent, of tangible personal property used in business 373
at the project site as a result of the agreement, or of real 374
property constituting the project site, or both.375

       (C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of 376
this section, the portion of the assessed value of tangible 377
personal property or of the increase in the assessed valuation of 378
real property exempted from taxation under those divisions may 379
exceed sixty per cent in any year for which that portion is 380
exempted if the average percentage exempted for all years in which 381
the agreement is in effect does not exceed fifty per cent, or if 382
the board of education of the city, local, or exempted village 383
school district within the territory of which the property is or 384
will be located approves a percentage in excess of sixty per cent.385

       (b) Notwithstanding any provision of the Revised Code to the 386
contrary, the exemptions described in divisions (B)(1)(b)(i), 387
(ii), (iii), and (iv) and (B)(2) of this section may be for up to 388
fifteen years if the board of education of the city, local, or 389
exempted village school district within the territory of which the 390
property is or will be located approves a number of years in 391
excess of ten.392

       (c) For the purpose of obtaining the approval of a city, 393
local, or exempted village school district under division 394
(C)(1)(a) or (b) of this section, the board of county 395
commissioners shall deliver to the board of education a notice not 396
later than forty-five days prior to approving the agreement, 397
excluding Saturdays, Sundays, and legal holidays as defined in 398
section 1.14 of the Revised Code. The notice shall state the 399
percentage to be exempted, an estimate of the true value of the 400
property to be exempted, and the number of years the property is 401
to be exempted. The board of education, by resolution adopted by a 402
majority of the board, shall approve or disapprove the agreement 403
and certify a copy of the resolution to the board of county 404
commissioners not later than fourteen days prior to the date 405
stipulated by the board of county commissioners as the date upon 406
which approval of the agreement is to be formally considered by 407
the board of county commissioners. The board of education may 408
include in the resolution conditions under which the board would 409
approve the agreement, including the execution of an agreement to 410
compensate the school district under division (B) of section 411
5709.82 of the Revised Code. The board of county commissioners may 412
approve the agreement at any time after the board of education 413
certifies its resolution approving the agreement to the board of 414
county commissioners, or, if the board of education approves the 415
agreement conditionally, at any time after the conditions are 416
agreed to by the board of education and the board of county 417
commissioners.418

       If a board of education has adopted a resolution waiving its 419
right to approve agreements and the resolution remains in effect, 420
approval of an agreement by the board of education is not required 421
under division (C) of this section. If a board of education has 422
adopted a resolution allowing a board of county commissioners to 423
deliver the notice required under this division fewer than 424
forty-five business days prior to approval of the agreement by the 425
board of county commissioners, the board of county commissioners 426
shall deliver the notice to the board of education not later than 427
the number of days prior to such approval as prescribed by the 428
board of education in its resolution. If a board of education 429
adopts a resolution waiving its right to approve agreements or 430
shortening the notification period, the board of education shall 431
certify a copy of the resolution to the board of county 432
commissioners. If the board of education rescinds such a 433
resolution, it shall certify notice of the rescission to the board 434
of county commissioners.435

       (2) The board of county commissioners shall comply with 436
section 5709.83 of the Revised Code unless the board of education 437
has adopted a resolution under that section waiving its right to 438
receive such notice.439

       (D) This division applies to zones certified by the director 440
of development services under this section prior to July 22, 1994.441

       On or before October 15, 20132015, and with the consent of 442
the legislative authority of each affected municipal corporation 443
or board of township trustees of each affected township, the board 444
of county commissioners that designated a zone to which this 445
division applies may enter into an agreement with an enterprise if 446
the board finds that the enterprise satisfies one of the criteria 447
described in divisions (D)(1) to (5) of this section:448

       (1) The enterprise currently has no operations in this state 449
and, subject to approval of the agreement, intends to establish 450
operations in the zone;451

       (2) The enterprise currently has operations in this state 452
and, subject to approval of the agreement, intends to establish 453
operations at a new location in the zone that would not result in 454
a reduction in the number of employee positions at any of the 455
enterprise's other locations in this state;456

       (3) The enterprise, subject to approval of the agreement, 457
intends to relocate operations, currently located in another 458
state, to the zone;459

       (4) The enterprise, subject to approval of the agreement, 460
intends to expand operations at an existing site in the zone that 461
the enterprise currently operates;462

       (5) The enterprise, subject to approval of the agreement, 463
intends to relocate operations, currently located in this state, 464
to the zone, and the director of development services has issued a 465
waiver for the enterprise under division (B) of section 5709.633 466
of the Revised Code.467

       The agreement shall require the enterprise to agree to 468
establish, expand, renovate, or occupy a facility in the zone and 469
hire new employees, or preserve employment opportunities for 470
existing employees, in return for one or more of the incentives 471
described in division (B) of this section.472

       (E) All agreements entered into under this section shall be 473
in the form prescribed under section 5709.631 of the Revised Code. 474
After an agreement under this section is entered into, if the 475
board of county commissioners revokes its designation of a zone, 476
or if the director of development services revokes a zone's 477
certification, any entitlements granted under the agreement shall 478
continue for the number of years specified in the agreement.479

       (F) Except as otherwise provided in this division, an 480
agreement entered into under this section shall require that the 481
enterprise pay an annual fee equal to the greater of one per cent 482
of the dollar value of incentives offered under the agreement or 483
five hundred dollars; provided, however, that if the value of the 484
incentives exceeds two hundred fifty thousand dollars, the fee 485
shall not exceed two thousand five hundred dollars. The fee shall 486
be payable to the board of county commissioners once per year for 487
each year the agreement is effective on the days and in the form 488
specified in the agreement. Fees paid shall be deposited in a 489
special fund created for such purpose by the board and shall be 490
used by the board exclusively for the purpose of complying with 491
section 5709.68 of the Revised Code and by the tax incentive 492
review council created under section 5709.85 of the Revised Code 493
exclusively for the purposes of performing the duties prescribed 494
under that section. The board may waive or reduce the amount of 495
the fee charged against an enterprise, but such waiver or 496
reduction does not affect the obligations of the board or the tax 497
incentive review council to comply with section 5709.68 or 5709.85 498
of the Revised Code, respectively.499

       (G) With the approval of the legislative authority of a 500
municipal corporation or the board of township trustees of a 501
township in which a zone is designated under division (A) of this 502
section, the board of county commissioners may delegate to that 503
legislative authority or board any powers and duties of the board 504
of county commissioners to negotiate and administer agreements 505
with regard to that zone under this section.506

       (H) When an agreement is entered into pursuant to this 507
section, the board of county commissioners authorizing the 508
agreement or the legislative authority or board of township 509
trustees that negotiates and administers the agreement shall 510
forward a copy of the agreement to the director of development 511
services and to the tax commissioner within fifteen days after the 512
agreement is entered into. If any agreement includes terms not 513
provided for in section 5709.631 of the Revised Code affecting the 514
revenue of a city, local, or exempted village school district or 515
causing revenue to be foregone by the district, including any 516
compensation to be paid to the school district pursuant to section 517
5709.82 of the Revised Code, those terms also shall be forwarded 518
in writing to the director of development services along with the 519
copy of the agreement forwarded under this division.520

       (I) After an agreement is entered into, the enterprise shall 521
file with each personal property tax return required to be filed, 522
or annual report that is required to be filed under section 523
5727.08 of the Revised Code, while the agreement is in effect, an 524
informational return, on a form prescribed by the tax commissioner 525
for that purpose, setting forth separately the property, and 526
related costs and values, exempted from taxation under the 527
agreement.528

       (J) Enterprises may agree to give preference to residents of 529
the zone within which the agreement applies relative to residents 530
of this state who do not reside in the zone when hiring new 531
employees under the agreement.532

       (K) An agreement entered into under this section may include 533
a provision requiring the enterprise to create one or more 534
temporary internship positions for students enrolled in a course 535
of study at a school or other educational institution in the 536
vicinity, and to create a scholarship or provide another form of 537
educational financial assistance for students holding such a 538
position in exchange for the student's commitment to work for the 539
enterprise at the completion of the internship.540

       (L) The tax commissioner's authority in determining the 541
accuracy of any exemption granted by an agreement entered into 542
under this section is limited to divisions (B)(1)(b)(i) and (ii), 543
(B)(2), (C), and (I) of this section, division (B)(1)(b)(iv) of 544
this section as it pertains to divisions (C)(2)(a), (b), and (c) 545
of section 5709.62 of the Revised Code, and divisions (B)(1) to 546
(10) of section 5709.631 of the Revised Code and, as authorized by 547
law, to enforcing any modification to, or revocation of, that 548
agreement by the board of county commissioners or the director of 549
development services or, if the board's powers and duties are 550
delegated under division (G) of this section, by the legislative 551
authority of a municipal corporation or board of township 552
trustees.553

       Sec. 5709.632.  (A)(1) The legislative authority of a 554
municipal corporation defined by the United States office of 555
management and budget as a principal city of a metropolitan 556
statistical area may, in the manner set forth in section 5709.62 557
of the Revised Code, designate one or more areas in the municipal 558
corporation as a proposed enterprise zone.559

       (2) With the consent of the legislative authority of each 560
affected municipal corporation or of a board of township trustees, 561
a board of county commissioners may, in the manner set forth in 562
section 5709.62 of the Revised Code, designate one or more areas 563
in one or more municipal corporations or in unincorporated areas 564
of the county as proposed urban jobs and enterprise zones, except 565
that a board of county commissioners may designate no more than 566
one area within a township, or within adjacent townships, as a 567
proposed urban jobs and enterprise zone.568

       (3) The legislative authority or board of county 569
commissioners may petition the director of development services570
for certification of the area as having the characteristics set 571
forth in division (A)(3) of section 5709.61 of the Revised Code. 572
Within sixty days after receiving such a petition, the director 573
shall determine whether the area has the characteristics set forth 574
in that division and forward the findings to the legislative 575
authority or board of county commissioners. If the director 576
certifies the area as having those characteristics and thereby 577
certifies it as a zone, the legislative authority or board may 578
enter into agreements with enterprises under division (B) of this 579
section. Any enterprise wishing to enter into an agreement with a 580
legislative authority or board of county commissioners under this 581
section and satisfying one of the criteria described in divisions 582
(B)(1) to (5) of this section shall submit a proposal to the 583
legislative authority or board on the form prescribed under 584
division (B) of section 5709.62 of the Revised Code and shall 585
review and update the estimates and listings required by the form 586
in the manner required under that division. The legislative 587
authority or board may, on a separate form and at any time, 588
require any additional information necessary to determine whether 589
an enterprise is in compliance with an agreement and to collect 590
the information required to be reported under section 5709.68 of 591
the Revised Code.592

       (B) Prior to entering into an agreement with an enterprise, 593
the legislative authority or board of county commissioners shall 594
determine whether the enterprise submitting the proposal is 595
qualified by financial responsibility and business experience to 596
create and preserve employment opportunities in the zone and to 597
improve the economic climate of the municipal corporation or 598
municipal corporations or the unincorporated areas in which the 599
zone is located and to which the proposal applies, and whether the 600
enterprise satisfies one of the following criteria:601

       (1) The enterprise currently has no operations in this state 602
and, subject to approval of the agreement, intends to establish 603
operations in the zone;604

       (2) The enterprise currently has operations in this state 605
and, subject to approval of the agreement, intends to establish 606
operations at a new location in the zone that would not result in 607
a reduction in the number of employee positions at any of the 608
enterprise's other locations in this state;609

       (3) The enterprise, subject to approval of the agreement, 610
intends to relocate operations, currently located in another 611
state, to the zone;612

       (4) The enterprise, subject to approval of the agreement, 613
intends to expand operations at an existing site in the zone that 614
the enterprise currently operates;615

       (5) The enterprise, subject to approval of the agreement, 616
intends to relocate operations, currently located in this state, 617
to the zone, and the director of development services has issued a 618
waiver for the enterprise under division (B) of section 5709.633 619
of the Revised Code.620

       (C) If the legislative authority or board determines that the 621
enterprise is so qualified and satisfies one of the criteria 622
described in divisions (B)(1) to (5) of this section, the 623
legislative authority or board may, after complying with section 624
5709.83 of the Revised Code and on or before October 15, 2013625
2015, and, in the case of a board of commissioners, with the 626
consent of the legislative authority of each affected municipal 627
corporation or of the board of township trustees, enter into an 628
agreement with the enterprise under which the enterprise agrees to 629
establish, expand, renovate, or occupy a facility in the zone and 630
hire new employees, or preserve employment opportunities for 631
existing employees, in return for the following incentives:632

       (1) When the facility is located in a municipal corporation, 633
a legislative authority or board of commissioners may enter into 634
an agreement for one or more of the incentives provided in 635
division (C) of section 5709.62 of the Revised Code, subject to 636
division (D) of that section;637

       (2) When the facility is located in an unincorporated area, a 638
board of commissioners may enter into an agreement for one or more 639
of the incentives provided in divisions (B)(1)(b), (B)(2), and 640
(B)(3) of section 5709.63 of the Revised Code, subject to division 641
(C) of that section.642

       (D) All agreements entered into under this section shall be 643
in the form prescribed under section 5709.631 of the Revised Code. 644
After an agreement under this section is entered into, if the 645
legislative authority or board of county commissioners revokes its 646
designation of the zone, or if the director of development 647
services revokes the zone's certification, any entitlements 648
granted under the agreement shall continue for the number of years 649
specified in the agreement.650

       (E) Except as otherwise provided in this division, an 651
agreement entered into under this section shall require that the 652
enterprise pay an annual fee equal to the greater of one per cent 653
of the dollar value of incentives offered under the agreement or 654
five hundred dollars; provided, however, that if the value of the 655
incentives exceeds two hundred fifty thousand dollars, the fee 656
shall not exceed two thousand five hundred dollars. The fee shall 657
be payable to the legislative authority or board of commissioners 658
once per year for each year the agreement is effective on the days 659
and in the form specified in the agreement. Fees paid shall be 660
deposited in a special fund created for such purpose by the 661
legislative authority or board and shall be used by the 662
legislative authority or board exclusively for the purpose of 663
complying with section 5709.68 of the Revised Code and by the tax 664
incentive review council created under section 5709.85 of the 665
Revised Code exclusively for the purposes of performing the duties 666
prescribed under that section. The legislative authority or board 667
may waive or reduce the amount of the fee charged against an 668
enterprise, but such waiver or reduction does not affect the 669
obligations of the legislative authority or board or the tax 670
incentive review council to comply with section 5709.68 or 5709.85 671
of the Revised Code, respectively.672

       (F) With the approval of the legislative authority of a 673
municipal corporation or the board of township trustees of a 674
township in which a zone is designated under division (A)(2) of 675
this section, the board of county commissioners may delegate to 676
that legislative authority or board any powers and duties of the 677
board to negotiate and administer agreements with regard to that 678
zone under this section.679

       (G) When an agreement is entered into pursuant to this 680
section, the legislative authority or board of commissioners 681
authorizing the agreement shall forward a copy of the agreement to 682
the director of development services and to the tax commissioner 683
within fifteen days after the agreement is entered into. If any 684
agreement includes terms not provided for in section 5709.631 of 685
the Revised Code affecting the revenue of a city, local, or 686
exempted village school district or causing revenue to be forgone 687
by the district, including any compensation to be paid to the 688
school district pursuant to section 5709.82 of the Revised Code, 689
those terms also shall be forwarded in writing to the director of 690
development services along with the copy of the agreement 691
forwarded under this division.692

       (H) After an agreement is entered into, the enterprise shall 693
file with each personal property tax return required to be filed 694
while the agreement is in effect, an informational return, on a 695
form prescribed by the tax commissioner for that purpose, setting 696
forth separately the property, and related costs and values, 697
exempted from taxation under the agreement.698

       (I) An agreement entered into under this section may include 699
a provision requiring the enterprise to create one or more 700
temporary internship positions for students enrolled in a course 701
of study at a school or other educational institution in the 702
vicinity, and to create a scholarship or provide another form of 703
educational financial assistance for students holding such a 704
position in exchange for the student's commitment to work for the 705
enterprise at the completion of the internship.706

       Section 2.  That existing sections 5709.62, 5709.63, and 707
5709.632 of the Revised Code are hereby repealed.708