Bill Analysis

Legislative Service Commission

LSC Analysis of House Bill

H.B. 365

126th General Assembly

(As Introduced)


Reps.     Setzer, Reidelbach, Harwood, Reinhard


·        Removes the limitation that only four limited combinations of municipal corporations and townships may create a joint economic development district (JEDD) under two of three current procedures for creating JEDDs.



Joint economic development districts (JEDDs) are special purpose districts created for the purpose of facilitating economic development to create or preserve jobs and employment opportunities and to improve the economic welfare of people in Ohio and in the townships and municipal corporations creating the districts (R.C. 715.70(B)(1), 715.71(B), and 715.72(C)).

JEDDs may be formed under one of the following three different procedures:

(1)  A detailed procedure contained in R.C. 715.70 that applies only to (a) municipal corporations and townships within counties that have adopted a charter, (b) JEDDs created by municipal corporations and townships and composed solely of municipal corporation territory that includes an airport that is owned by the municipal corporation and located entirely beyond its borders, (c) municipal corporations or townships that are part of or contiguous to a transportation improvement district and that created a JEDD prior to November 15, 1995, or (d) municipal corporations that "previously" created a JEDD consisting only of municipal territory that included an airport, and that create a new JEDD with other municipal corporations and townships apparently by adding territory that does not consist solely of an airport described in (b) above.  Under this restricted procedure, in addition to other requirements, the JEDD cannot exceed 2,000 acres in area.

(2)  An alternative detailed procedure contained in R.C. 715.71 that applies to the same areas enumerated in (1)(a) to (d) above, but involving some different procedural aspects.  For example, the acreage limitation mentioned above does not apply under the alternative procedure.

(3)  Another alternative detailed procedure contained in R.C. 715.72 to 715.81 that applies to townships and municipal corporations located throughout the state, but is limited to areas where no electors reside that are not (and cannot be) zoned for residential use.

A JEDD is governed by a board of directors.  Powers and duties of the board as well as the rights and duties of participating townships and municipal corporations are established by statute and principally by a contract between the parties.  The contract also specifies the extent of each party's contribution of services, money, or property to the JEDD and each party's share of the cost of operating the JEDD.  The contract may grant to the board the power to levy an income tax on persons and businesses residing in, working in, or operating in the JEDD.

Changes made by the bill

The bill removes the limitations described in (1) and (2) above upon the types of municipal corporations and townships that can create JEDDs under the procedure prescribed in R.C. 715.70 and the alternative procedure prescribed in R.C. 715.71, and makes those procedures (a) available to every municipal corporation and township located in the state to create and operate a JEDD and (b) alternatives to using the procedure of R.C. 715.72 to 715.81 mentioned in (3) above that currently may be used by any municipal corporation and township (R.C. 715.70(A), (B)(1), and (K); R.C. 715.71(A)--not in the bill).










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