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Am. Sub. S. B. No. 314 As Enrolled
(129th General Assembly)
(Amended Substitute Senate Bill Number 314)
AN ACT
To amend sections 9.981, 102.03, 121.02, 121.03,
121.22, 122.01, 122.011, 122.07, 122.071, 122.17,
122.171, 122.174, 122.175, 122.39, 122.41, 122.42,
122.43, 122.44, 122.48, 122.49, 122.50, 122.51,
122.52, 122.53, 122.561, 122.57, 122.60, 122.601,
122.602, 122.603, 122.61, 122.62, 122.64, 122.76,
122.80, 122.86, 149.311, 149.43, 164.05, 164.06,
164.08, 166.01, 166.04, 166.05, 166.11, 166.13,
166.14, 166.18, 166.19, 166.25, 166.30, 174.01,
184.01, 187.01, 187.03, 187.04, 187.05, 929.03,
1551.01, 3735.672, 3746.35, 5117.22, 5709.68,
5709.882, 6103.052, and 6117.062, to amend, for
the purpose of adopting new section numbers as
indicated in parentheses, sections 122.07
(122.073) and 122.071 (122.072), to enact new
sections 122.07 and 122.071 and sections 122.942,
122.97, 184.011, 187.061, 3735.01, and 5701.15,
and to repeal sections 122.40, 1525.11, 1525.12,
1525.13, and 6111.034 of the Revised Code to
rename the Department of Development the
"Development Services Agency"; to establish the
Office of TourismOhio within the Development
Services Agency, create the TourismOhio Advisory
Board, and establish a pilot program to test a new
funding mechanism for the state's travel and
tourism marketing; to modify the operation of
JobsOhio, including by requiring annual ethics
training, ethical conduct statements, and the
development of a gift policy; to makes changes to
the Capital Access Loan Program Fund and to allow
transfers to the Capital Access Loan Program Fund
from the Minority Business Enterprise Loan Fund;
to provide for projects that were started prior to
receiving a tax credit from the Ohio Tax Credit
Authority; to modify reporting requirements under
the Voluntary Action Program; to require the
Director of Development Services to administer
federal funds received for Brownfields
revitalization purposes; to terminate the Water
and Sewer Commission; to terminate the Development
Financing Advisory Council; to require the
Director of Development Services to make certain
information available to the public with respect
to each project for which state-funded financial
assistance is awarded by the Development Services
Agency; to expand eligibility for the historic
rehabilitation tax credit; to establish an annual
debt service limitation on project financing
obligations issued for certain economic
development programs; and to increase the
membership of the Third Frontier Commission.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 9.981, 102.03, 121.02, 121.03,
121.22, 122.01, 122.011, 122.07, 122.071, 122.17, 122.171,
122.174, 122.175, 122.39, 122.41, 122.42, 122.43, 122.44, 122.48,
122.49, 122.50, 122.51, 122.52, 122.53, 122.561, 122.57, 122.60,
122.601, 122.602, 122.603, 122.61, 122.62, 122.64, 122.76, 122.80,
122.86, 149.311, 149.43, 164.05, 164.06, 164.08, 166.01, 166.04,
166.05, 166.11, 166.13, 166.14, 166.18, 166.19, 166.25, 166.30,
174.01, 184.01, 187.01, 187.03, 187.04, 187.05, 929.03, 1551.01,
3735.672, 3746.35, 5117.22, 5709.68, 5709.882, 6103.052, and
6117.062 be amended, sections 122.07 (122.073) and 122.071
(122.072) be amended for the purpose of adopting new section
numbers as indicated in parentheses, and new sections 122.07 and
122.071 and sections 122.942, 122.97, 184.011, 187.061, 3735.01,
and 5701.15 of the Revised Code be enacted to read as follows:
Sec. 9.981. (A) Sections 9.98 to 9.983 of the Revised Code
are applicable to bonds:
(1) The payment of the debt service on which is to be
provided for directly or indirectly by payments contracted to be
made in the bond proceedings by the absolute obligors, being
persons other than the issuer; and
(2) Which are authorized to be issued under sections 122.39
and 122.41 to 122.62, Chapter 165., 902., 3377., 3706., division
(A)(4) of section 4582.06, division (A)(8) of section 4582.31,
section 4582.48, or Chapter 6121. or 6123. of the Revised Code,
notwithstanding other provisions therein.
(B) Sections 9.98 to 9.983 of the Revised Code are applicable
to bonds issued under sections 306.37 and 6119.12 of the Revised
Code and Chapters 140., 152., 154., 175., and 349. of the Revised
Code, and to any bonds authorized under laws which expressly make
those sections applicable.
(C) Subject to division (A) of this section, the authority
provided in sections 9.98 to 9.983 of the Revised Code is
supplemental to and not in derogation of any similar authority
provided by, derived from, or implied by, any law, the Ohio
Constitution, or any charter, resolution, or ordinance, and no
inference shall be drawn to negate the authority thereunder by
reason of the express provisions of sections 9.98 to 9.983 of the
Revised Code.
(D) Sections 9.98 to 9.983 of the Revised Code shall be
liberally construed to permit flexibility in the arrangements
therein provided to enhance the issuance of such bonds and provide
for terms most beneficial and satisfactory to the persons which
undertake to provide for their payment, security, and liquidity.
Sec. 102.03. (A)(1) No present or former public official or
employee shall, during public employment or service or for twelve
months thereafter, represent a client or act in a representative
capacity for any person on any matter in which the public official
or employee personally participated as a public official or
employee through decision, approval, disapproval, recommendation,
the rendering of advice, investigation, or other substantial
exercise of administrative discretion.
(2) For twenty-four months after the conclusion of service,
no former commissioner or attorney examiner of the public
utilities commission shall represent a public utility, as defined
in section 4905.02 of the Revised Code, or act in a representative
capacity on behalf of such a utility before any state board,
commission, or agency.
(3) For twenty-four months after the conclusion of employment
or service, no former public official or employee who personally
participated as a public official or employee through decision,
approval, disapproval, recommendation, the rendering of advice,
the development or adoption of solid waste management plans,
investigation, inspection, or other substantial exercise of
administrative discretion under Chapter 343. or 3734. of the
Revised Code shall represent a person who is the owner or operator
of a facility, as defined in section 3734.01 of the Revised Code,
or who is an applicant for a permit or license for a facility
under that chapter, on any matter in which the public official or
employee personally participated as a public official or employee.
(4) For a period of one year after the conclusion of
employment or service as a member or employee of the general
assembly, no former member or employee of the general assembly
shall represent, or act in a representative capacity for, any
person on any matter before the general assembly, any committee of
the general assembly, or the controlling board. Division (A)(4) of
this section does not apply to or affect a person who separates
from service with the general assembly on or before December 31,
1995. As used in division (A)(4) of this section "person" does not
include any state agency or political subdivision of the state.
(5) As used in divisions (A)(1), (2), and (3) of this
section, "matter" includes any case, proceeding, application,
determination, issue, or question, but does not include the
proposal, consideration, or enactment of statutes, rules,
ordinances, resolutions, or charter or constitutional amendments.
As used in division (A)(4) of this section, "matter" includes the
proposal, consideration, or enactment of statutes, resolutions, or
constitutional amendments. As used in division (A) of this
section, "represent" includes any formal or informal appearance
before, or any written or oral communication with, any public
agency on behalf of any person.
(6) Nothing contained in division (A) of this section shall
prohibit, during such period, a former public official or employee
from being retained or employed to represent, assist, or act in a
representative capacity for the public agency by which the public
official or employee was employed or on which the public official
or employee served.
(7) Division (A) of this section shall not be construed to
prohibit the performance of ministerial functions, including, but
not limited to, the filing or amendment of tax returns,
applications for permits and licenses, incorporation papers, and
other similar documents.
(8) Division (A) of this section does not prohibit a
nonelected public official or employee of a state agency, as
defined in section 1.60 of the Revised Code, from becoming a
public official or employee of another state agency. Division (A)
of this section does not prohibit such an official or employee
from representing or acting in a representative capacity for the
official's or employee's new state agency on any matter in which
the public official or employee personally participated as a
public official or employee at the official's or employee's former
state agency. However, no public official or employee of a state
agency shall, during public employment or for twelve months
thereafter, represent or act in a representative capacity for the
official's or employee's new state agency on any audit or
investigation pertaining to the official's or employee's new state
agency in which the public official or employee personally
participated at the official's or employee's former state agency
through decision, approval, disapproval, recommendation, the
rendering of advice, investigation, or other substantial exercise
of administrative discretion.
(9) Division (A) of this section does not prohibit a
nonelected public official or employee of a political subdivision
from becoming a public official or employee of a different
department, division, agency, office, or unit of the same
political subdivision. Division (A) of this section does not
prohibit such an official or employee from representing or acting
in a representative capacity for the official's or employee's new
department, division, agency, office, or unit on any matter in
which the public official or employee personally participated as a
public official or employee at the official's or employee's former
department, division, agency, office, or unit of the same
political subdivision. As used in this division, "political
subdivision" means a county, township, municipal corporation, or
any other body corporate and politic that is responsible for
government activities in a geographic area smaller than that of
the state.
(10) No present or former Ohio casino control commission
official shall, during public service or for two years thereafter,
represent a client, be employed or compensated by a person
regulated by the commission, or act in a representative capacity
for any person on any matter before or concerning the commission.
No present or former commission employee shall, during public
employment or for two years thereafter, represent a client or act
in a representative capacity on any matter in which the employee
personally participated as a commission employee through decision,
approval, disapproval, recommendation, the rendering of advice,
investigation, or other substantial exercise of administrative
discretion.
(B) No present or former public official or employee shall
disclose or use, without appropriate authorization, any
information acquired by the public official or employee in the
course of the public official's or employee's official duties that
is confidential because of statutory provisions, or that has been
clearly designated to the public official or employee as
confidential when that confidential designation is warranted
because of the status of the proceedings or the circumstances
under which the information was received and preserving its
confidentiality is necessary to the proper conduct of government
business.
(C) No public official or employee shall participate within
the scope of duties as a public official or employee, except
through ministerial functions as defined in division (A) of this
section, in any license or rate-making proceeding that directly
affects the license or rates of any person, partnership, trust,
business trust, corporation, or association in which the public
official or employee or immediate family owns or controls more
than five per cent. No public official or employee shall
participate within the scope of duties as a public official or
employee, except through ministerial functions as defined in
division (A) of this section, in any license or rate-making
proceeding that directly affects the license or rates of any
person to whom the public official or employee or immediate
family, or a partnership, trust, business trust, corporation, or
association of which the public official or employee or the public
official's or employee's immediate family owns or controls more
than five per cent, has sold goods or services totaling more than
one thousand dollars during the preceding year, unless the public
official or employee has filed a written statement acknowledging
that sale with the clerk or secretary of the public agency and the
statement is entered in any public record of the agency's
proceedings. This division shall not be construed to require the
disclosure of clients of attorneys or persons licensed under
section 4732.12 or 4732.15 of the Revised Code, or patients of
persons certified under section 4731.14 of the Revised Code.
(D) No public official or employee shall use or authorize the
use of the authority or influence of office or employment to
secure anything of value or the promise or offer of anything of
value that is of such a character as to manifest a substantial and
improper influence upon the public official or employee with
respect to that person's duties.
(E) No public official or employee shall solicit or accept
anything of value that is of such a character as to manifest a
substantial and improper influence upon the public official or
employee with respect to that person's duties.
(F) No person shall promise or give to a public official or
employee anything of value that is of such a character as to
manifest a substantial and improper influence upon the public
official or employee with respect to that person's duties.
(G) In the absence of bribery or another offense under the
Revised Code or a purpose to defraud, contributions made to a
campaign committee, political party, legislative campaign fund,
political action committee, or political contributing entity on
behalf of an elected public officer or other public official or
employee who seeks elective office shall be considered to accrue
ordinarily to the public official or employee for the purposes of
divisions (D), (E), and (F) of this section.
As used in this division, "contributions," "campaign
committee," "political party," "legislative campaign fund,"
"political action committee," and "political contributing entity"
have the same meanings as in section 3517.01 of the Revised Code.
(H)(1) No public official or employee, except for the
president or other chief administrative officer of or a member of
a board of trustees of a state institution of higher education as
defined in section 3345.011 of the Revised Code, who is required
to file a financial disclosure statement under section 102.02 of
the Revised Code shall solicit or accept, and no person shall give
to that public official or employee, an honorarium. Except as
provided in division (H)(2) of this section, this division and
divisions (D), (E), and (F) of this section do not prohibit a
public official or employee who is required to file a financial
disclosure statement under section 102.02 of the Revised Code from
accepting and do not prohibit a person from giving to that public
official or employee the payment of actual travel expenses,
including any expenses incurred in connection with the travel for
lodging, and meals, food, and beverages provided to the public
official or employee at a meeting at which the public official or
employee participates in a panel, seminar, or speaking engagement
or provided to the public official or employee at a meeting or
convention of a national organization to which any state agency,
including, but not limited to, any state legislative agency or
state institution of higher education as defined in section
3345.011 of the Revised Code, pays membership dues. Except as
provided in division (H)(2) of this section, this division and
divisions (D), (E), and (F) of this section do not prohibit a
public official or employee who is not required to file a
financial disclosure statement under section 102.02 of the Revised
Code from accepting and do not prohibit a person from promising or
giving to that public official or employee an honorarium or the
payment of travel, meal, and lodging expenses if the honorarium,
expenses, or both were paid in recognition of demonstrable
business, professional, or esthetic interests of the public
official or employee that exist apart from public office or
employment, including, but not limited to, such a demonstrable
interest in public speaking and were not paid by any person or
other entity, or by any representative or association of those
persons or entities, that is regulated by, doing business with, or
seeking to do business with the department, division, institution,
board, commission, authority, bureau, or other instrumentality of
the governmental entity with which the public official or employee
serves.
(2) No person who is a member of the board of a state
retirement system, a state retirement system investment officer,
or an employee of a state retirement system whose position
involves substantial and material exercise of discretion in the
investment of retirement system funds shall solicit or accept, and
no person shall give to that board member, officer, or employee,
payment of actual travel expenses, including expenses incurred
with the travel for lodging, meals, food, and beverages.
(I) A public official or employee may accept travel, meals,
and lodging or expenses or reimbursement of expenses for travel,
meals, and lodging in connection with conferences, seminars, and
similar events related to official duties if the travel, meals,
and lodging, expenses, or reimbursement is not of such a character
as to manifest a substantial and improper influence upon the
public official or employee with respect to that person's duties.
The house of representatives and senate, in their code of ethics,
and the Ohio ethics commission, under section 111.15 of the
Revised Code, may adopt rules setting standards and conditions for
the furnishing and acceptance of such travel, meals, and lodging,
expenses, or reimbursement.
A person who acts in compliance with this division and any
applicable rules adopted under it, or any applicable, similar
rules adopted by the supreme court governing judicial officers and
employees, does not violate division (D), (E), or (F) of this
section. This division does not preclude any person from seeking
an advisory opinion from the appropriate ethics commission under
section 102.08 of the Revised Code.
(J) For purposes of divisions (D), (E), and (F) of this
section, the membership of a public official or employee in an
organization shall not be considered, in and of itself, to be of
such a character as to manifest a substantial and improper
influence on the public official or employee with respect to that
person's duties. As used in this division, "organization" means a
church or a religious, benevolent, fraternal, or professional
organization that is tax exempt under subsection 501(a) and
described in subsection 501(c)(3), (4), (8), (10), or (19) of the
"Internal Revenue Code of 1986." This division does not apply to a
public official or employee who is an employee of an organization,
serves as a trustee, director, or officer of an organization, or
otherwise holds a fiduciary relationship with an organization.
This division does not allow a public official or employee who is
a member of an organization to participate, formally or
informally, in deliberations, discussions, or voting on a matter
or to use his the public official's or employee's official
position with regard to the interests of the organization on the
matter if the public official or employee has assumed a particular
responsibility in the organization with respect to the matter or
if the matter would affect that person's personal, pecuniary
interests.
(K) It is not a violation of this section for a prosecuting
attorney to appoint assistants and employees in accordance with
division (B) of section 309.06 and section 2921.421 of the Revised
Code, for a chief legal officer of a municipal corporation or an
official designated as prosecutor in a municipal corporation to
appoint assistants and employees in accordance with sections
733.621 and 2921.421 of the Revised Code, for a township law
director appointed under section 504.15 of the Revised Code to
appoint assistants and employees in accordance with sections
504.151 and 2921.421 of the Revised Code, or for a coroner to
appoint assistants and employees in accordance with division (B)
of section 313.05 of the Revised Code.
As used in this division, "chief legal officer" has the same
meaning as in section 733.621 of the Revised Code.
(L) No present public official or employee with a casino
gaming regulatory function shall indirectly invest, by way of an
entity the public official or employee has an ownership interest
or control in, or directly invest in a casino operator, management
company, holding company, casino facility, or gaming-related
vendor. No present public official or employee with a casino
gaming regulatory function shall directly or indirectly have a
financial interest in, have an ownership interest in, be the
creditor or hold a debt instrument issued by, or have an interest
in a contractual or service relationship with a casino operator,
management company, holding company, casino facility, or
gaming-related vendor. This section does not prohibit or limit
permitted passive investing by the public official or employee.
As used in this division, "passive investing" means
investment by the public official or employee by means of a mutual
fund in which the public official or employee has no control of
the investments or investment decisions. "Casino operator,"
"holding company," "management company," "casino facility," and
"gaming-related vendor" have the same meanings as in section
3772.01 of the Revised Code.
(M) A member of the Ohio casino control commission, the
executive director of the commission, or an employee of the
commission shall not:
(1) Accept anything of value, including but not limited to a
gift, gratuity, emolument, or employment from a casino operator,
management company, or other person subject to the jurisdiction of
the commission, or from an officer, attorney, agent, or employee
of a casino operator, management company, or other person subject
to the jurisdiction of the commission;
(2) Solicit, suggest, request, or recommend, directly or
indirectly, to a casino operator, management company, or other
person subject to the jurisdiction of the commission, or to an
officer, attorney, agent, or employee of a casino operator,
management company, or other person subject to the jurisdiction of
the commission, the appointment of a person to an office, place,
position, or employment;
(3) Participate in casino gaming or any other amusement or
activity at a casino facility in this state or at an affiliate
gaming facility of a licensed casino operator, wherever located.
In addition to the penalty provided in section 102.99 of the
Revised Code, whoever violates division (M)(1), (2), or (3) of
this section forfeits the individual's office or employment.
Sec. 121.02. The following administrative departments and
their respective directors are hereby created:
(A) The office of budget and management, which shall be
administered by the director of budget and management;
(B) The department of commerce, which shall be administered
by the director of commerce;
(C) The department of administrative services, which shall be
administered by the director of administrative services;
(D) The department of transportation, which shall be
administered by the director of transportation;
(E) The department of agriculture, which shall be
administered by the director of agriculture;
(F) The department of natural resources, which shall be
administered by the director of natural resources;
(G) The department of health, which shall be administered by
the director of health;
(H) The department of job and family services, which shall be
administered by the director of job and family services;
(I) Until July 1, 1997, the department of liquor control,
which shall be administered by the director of liquor control;
(J) The department of public safety, which shall be
administered by the director of public safety;
(K) The department of mental health, which shall be
administered by the director of mental health;
(L) The department of developmental disabilities, which shall
be administered by the director of developmental disabilities;
(M) The department of insurance, which shall be administered
by the superintendent of insurance as director thereof;
(N) The department of development services agency, which
shall be administered by the director of development services;
(O) The department of youth services, which shall be
administered by the director of youth services;
(P) The department of rehabilitation and correction, which
shall be administered by the director of rehabilitation and
correction;
(Q) The environmental protection agency, which shall be
administered by the director of environmental protection;
(R) The department of aging, which shall be administered by
the director of aging;
(S) The department of alcohol and drug addiction services,
which shall be administered by the director of alcohol and drug
addiction services;
(T) The department of veterans services, which shall be
administered by the director of veterans services.
The director of each department shall exercise the powers and
perform the duties vested by law in such department.
Sec. 121.03. The following administrative department heads
shall be appointed by the governor, with the advice and consent of
the senate, and shall hold their offices during the term of the
appointing governor, and are subject to removal at the pleasure of
the governor.
(A) The director of budget and management;
(B) The director of commerce;
(C) The director of transportation;
(D) The director of agriculture;
(E) The director of job and family services;
(F) Until July 1, 1997, the director of liquor control;
(G) The director of public safety;
(H) The superintendent of insurance;
(I) The director of development services;
(J) The tax commissioner;
(K) The director of administrative services;
(L) The director of natural resources;
(M) The director of mental health;
(N) The director of developmental disabilities;
(O) The director of health;
(P) The director of youth services;
(Q) The director of rehabilitation and correction;
(R) The director of environmental protection;
(S) The director of aging;
(T) The director of alcohol and drug addiction services;
(U) The administrator of workers' compensation who meets the
qualifications required under division (A) of section 4121.121 of
the Revised Code;
(V) The director of veterans services who meets the
qualifications required under section 5902.01 of the Revised Code;
(W) The chancellor of the Ohio board of regents.
Sec. 121.22. (A) This section shall be liberally construed
to require public officials to take official action and to conduct
all deliberations upon official business only in open meetings
unless the subject matter is specifically excepted by law.
(B) As used in this section:
(1) "Public body" means any of the following:
(a) Any board, commission, committee, council, or similar
decision-making body of a state agency, institution, or authority,
and any legislative authority or board, commission, committee,
council, agency, authority, or similar decision-making body of any
county, township, municipal corporation, school district, or other
political subdivision or local public institution;
(b) Any committee or subcommittee of a body described in
division (B)(1)(a) of this section;
(c) A court of jurisdiction of a sanitary district organized
wholly for the purpose of providing a water supply for domestic,
municipal, and public use when meeting for the purpose of the
appointment, removal, or reappointment of a member of the board of
directors of such a district pursuant to section 6115.10 of the
Revised Code, if applicable, or for any other matter related to
such a district other than litigation involving the district. As
used in division (B)(1)(c) of this section, "court of
jurisdiction" has the same meaning as "court" in section 6115.01
of the Revised Code.
(2) "Meeting" means any prearranged discussion of the public
business of the public body by a majority of its members.
(3) "Regulated individual" means either of the following:
(a) A student in a state or local public educational
institution;
(b) A person who is, voluntarily or involuntarily, an inmate,
patient, or resident of a state or local institution because of
criminal behavior, mental illness or retardation, disease,
disability, age, or other condition requiring custodial care.
(4) "Public office" has the same meaning as in section
149.011 of the Revised Code.
(C) All meetings of any public body are declared to be public
meetings open to the public at all times. A member of a public
body shall be present in person at a meeting open to the public to
be considered present or to vote at the meeting and for purposes
of determining whether a quorum is present at the meeting.
The minutes of a regular or special meeting of any public
body shall be promptly prepared, filed, and maintained and shall
be open to public inspection. The minutes need only reflect the
general subject matter of discussions in executive sessions
authorized under division (G) or (J) of this section.
(D) This section does not apply to any of the following:
(1) A grand jury;
(2) An audit conference conducted by the auditor of state or
independent certified public accountants with officials of the
public office that is the subject of the audit;
(3) The adult parole authority when its hearings are
conducted at a correctional institution for the sole purpose of
interviewing inmates to determine parole or pardon;
(4) The organized crime investigations commission established
under section 177.01 of the Revised Code;
(5) Meetings of a child fatality review board established
under section 307.621 of the Revised Code and meetings conducted
pursuant to sections 5153.171 to 5153.173 of the Revised Code;
(6) The state medical board when determining whether to
suspend a certificate without a prior hearing pursuant to division
(G) of either section 4730.25 or 4731.22 of the Revised Code;
(7) The board of nursing when determining whether to suspend
a license or certificate without a prior hearing pursuant to
division (B) of section 4723.281 of the Revised Code;
(8) The state board of pharmacy when determining whether to
suspend a license without a prior hearing pursuant to division (D)
of section 4729.16 of the Revised Code;
(9) The state chiropractic board when determining whether to
suspend a license without a hearing pursuant to section 4734.37 of
the Revised Code;
(10) The executive committee of the emergency response
commission when determining whether to issue an enforcement order
or request that a civil action, civil penalty action, or criminal
action be brought to enforce Chapter 3750. of the Revised Code;
(11) The board of directors of the nonprofit corporation
formed under section 187.01 of the Revised Code or any committee
thereof, and the board of directors of any subsidiary of that
corporation or a committee thereof;
(12) An audit conference conducted by the audit staff of the
department of job and family services with officials of the public
office that is the subject of that audit under section 5101.37 of
the Revised Code.
(E) The controlling board, the development financing advisory
council, the industrial technology and enterprise advisory
council, the tax credit authority, or the minority development
financing advisory board, when meeting to consider granting
assistance pursuant to Chapter 122. or 166. of the Revised Code,
in order to protect the interest of the applicant or the possible
investment of public funds, by unanimous vote of all board,
council, or authority members present, may close the meeting
during consideration of the following information confidentially
received by the authority, council, or board from the applicant:
(1) Marketing plans;
(2) Specific business strategy;
(3) Production techniques and trade secrets;
(4) Financial projections;
(5) Personal financial statements of the applicant or members
of the applicant's immediate family, including, but not limited
to, tax records or other similar information not open to public
inspection.
The vote by the authority, council, or board to accept or
reject the application, as well as all proceedings of the
authority, council, or board not subject to this division, shall
be open to the public and governed by this section.
(F) Every public body, by rule, shall establish a reasonable
method whereby any person may determine the time and place of all
regularly scheduled meetings and the time, place, and purpose of
all special meetings. A public body shall not hold a special
meeting unless it gives at least twenty-four hours' advance notice
to the news media that have requested notification, except in the
event of an emergency requiring immediate official action. In the
event of an emergency, the member or members calling the meeting
shall notify the news media that have requested notification
immediately of the time, place, and purpose of the meeting.
The rule shall provide that any person, upon request and
payment of a reasonable fee, may obtain reasonable advance
notification of all meetings at which any specific type of public
business is to be discussed. Provisions for advance notification
may include, but are not limited to, mailing the agenda of
meetings to all subscribers on a mailing list or mailing notices
in self-addressed, stamped envelopes provided by the person.
(G) Except as provided in division (J) of this section, the
members of a public body may hold an executive session only after
a majority of a quorum of the public body determines, by a roll
call vote, to hold an executive session and only at a regular or
special meeting for the sole purpose of the consideration of any
of the following matters:
(1) To consider the appointment, employment, dismissal,
discipline, promotion, demotion, or compensation of a public
employee or official, or the investigation of charges or
complaints against a public employee, official, licensee, or
regulated individual, unless the public employee, official,
licensee, or regulated individual requests a public hearing.
Except as otherwise provided by law, no public body shall hold an
executive session for the discipline of an elected official for
conduct related to the performance of the elected official's
official duties or for the elected official's removal from office.
If a public body holds an executive session pursuant to division
(G)(1) of this section, the motion and vote to hold that executive
session shall state which one or more of the approved purposes
listed in division (G)(1) of this section are the purposes for
which the executive session is to be held, but need not include
the name of any person to be considered at the meeting.
(2) To consider the purchase of property for public purposes,
or for the sale of property at competitive bidding, if premature
disclosure of information would give an unfair competitive or
bargaining advantage to a person whose personal, private interest
is adverse to the general public interest. No member of a public
body shall use division (G)(2) of this section as a subterfuge for
providing covert information to prospective buyers or sellers. A
purchase or sale of public property is void if the seller or buyer
of the public property has received covert information from a
member of a public body that has not been disclosed to the general
public in sufficient time for other prospective buyers and sellers
to prepare and submit offers.
If the minutes of the public body show that all meetings and
deliberations of the public body have been conducted in compliance
with this section, any instrument executed by the public body
purporting to convey, lease, or otherwise dispose of any right,
title, or interest in any public property shall be conclusively
presumed to have been executed in compliance with this section
insofar as title or other interest of any bona fide purchasers,
lessees, or transferees of the property is concerned.
(3) Conferences with an attorney for the public body
concerning disputes involving the public body that are the subject
of pending or imminent court action;
(4) Preparing for, conducting, or reviewing negotiations or
bargaining sessions with public employees concerning their
compensation or other terms and conditions of their employment;
(5) Matters required to be kept confidential by federal law
or regulations or state statutes;
(6) Details relative to the security arrangements and
emergency response protocols for a public body or a public office,
if disclosure of the matters discussed could reasonably be
expected to jeopardize the security of the public body or public
office;
(7) In the case of a county hospital operated pursuant to
Chapter 339. of the Revised Code, a joint township hospital
operated pursuant to Chapter 513. of the Revised Code, or a
municipal hospital operated pursuant to Chapter 749. of the
Revised Code, to consider trade secrets, as defined in section
1333.61 of the Revised Code.
If a public body holds an executive session to consider any
of the matters listed in divisions (G)(2) to (7) of this section,
the motion and vote to hold that executive session shall state
which one or more of the approved matters listed in those
divisions are to be considered at the executive session.
A public body specified in division (B)(1)(c) of this section
shall not hold an executive session when meeting for the purposes
specified in that division.
(H) A resolution, rule, or formal action of any kind is
invalid unless adopted in an open meeting of the public body. A
resolution, rule, or formal action adopted in an open meeting that
results from deliberations in a meeting not open to the public is
invalid unless the deliberations were for a purpose specifically
authorized in division (G) or (J) of this section and conducted at
an executive session held in compliance with this section. A
resolution, rule, or formal action adopted in an open meeting is
invalid if the public body that adopted the resolution, rule, or
formal action violated division (F) of this section.
(I)(1) Any person may bring an action to enforce this
section. An action under division (I)(1) of this section shall be
brought within two years after the date of the alleged violation
or threatened violation. Upon proof of a violation or threatened
violation of this section in an action brought by any person, the
court of common pleas shall issue an injunction to compel the
members of the public body to comply with its provisions.
(2)(a) If the court of common pleas issues an injunction
pursuant to division (I)(1) of this section, the court shall order
the public body that it enjoins to pay a civil forfeiture of five
hundred dollars to the party that sought the injunction and shall
award to that party all court costs and, subject to reduction as
described in division (I)(2) of this section, reasonable
attorney's fees. The court, in its discretion, may reduce an award
of attorney's fees to the party that sought the injunction or not
award attorney's fees to that party if the court determines both
of the following:
(i) That, based on the ordinary application of statutory law
and case law as it existed at the time of violation or threatened
violation that was the basis of the injunction, a well-informed
public body reasonably would believe that the public body was not
violating or threatening to violate this section;
(ii) That a well-informed public body reasonably would
believe that the conduct or threatened conduct that was the basis
of the injunction would serve the public policy that underlies the
authority that is asserted as permitting that conduct or
threatened conduct.
(b) If the court of common pleas does not issue an injunction
pursuant to division (I)(1) of this section and the court
determines at that time that the bringing of the action was
frivolous conduct, as defined in division (A) of section 2323.51
of the Revised Code, the court shall award to the public body all
court costs and reasonable attorney's fees, as determined by the
court.
(3) Irreparable harm and prejudice to the party that sought
the injunction shall be conclusively and irrebuttably presumed
upon proof of a violation or threatened violation of this section.
(4) A member of a public body who knowingly violates an
injunction issued pursuant to division (I)(1) of this section may
be removed from office by an action brought in the court of common
pleas for that purpose by the prosecuting attorney or the attorney
general.
(J)(1) Pursuant to division (C) of section 5901.09 of the
Revised Code, a veterans service commission shall hold an
executive session for one or more of the following purposes unless
an applicant requests a public hearing:
(a) Interviewing an applicant for financial assistance under
sections 5901.01 to 5901.15 of the Revised Code;
(b) Discussing applications, statements, and other documents
described in division (B) of section 5901.09 of the Revised Code;
(c) Reviewing matters relating to an applicant's request for
financial assistance under sections 5901.01 to 5901.15 of the
Revised Code.
(2) A veterans service commission shall not exclude an
applicant for, recipient of, or former recipient of financial
assistance under sections 5901.01 to 5901.15 of the Revised Code,
and shall not exclude representatives selected by the applicant,
recipient, or former recipient, from a meeting that the commission
conducts as an executive session that pertains to the applicant's,
recipient's, or former recipient's application for financial
assistance.
(3) A veterans service commission shall vote on the grant or
denial of financial assistance under sections 5901.01 to 5901.15
of the Revised Code only in an open meeting of the commission. The
minutes of the meeting shall indicate the name, address, and
occupation of the applicant, whether the assistance was granted or
denied, the amount of the assistance if assistance is granted, and
the votes for and against the granting of assistance.
Sec. 122.01. (A) As used in the Revised Code, the
"department of development" means the development services agency
and the "director of development" means the director of
development services. Whenever the department or director of
development is referred to or designated in any statute, rule,
contract, grant, or other document, the reference or designation
shall be deemed to refer to the development services agency or
director of development services, as the case may be.
(B) As used in this chapter:
(A)(1) "Community problems" includes, but is not limited to,
taxation, fiscal administration, governmental structure and
organization, intergovernmental cooperation, education and
training, employment needs, community planning and development,
air and water pollution, public safety and the administration of
justice, housing, mass transportation, community facilities and
services, health, welfare, recreation, open space, and the
development of human resources.
(B)(2) "Professional personnel" means either of the
following:
(1)(a) Personnel who have earned a bachelor's degree from a
college or university;
(2)(b) Personnel who serve as or have the working title of
director, assistant director, deputy director, assistant deputy
director, manager, office chief, assistant office chief, or
program director.
(C)(3) "Technical personnel" means any of the following:
(1)(a) Personnel who provide technical assistance according
to their job description or in accordance with the Revised Code;
(2)(b) Personnel employed in the director of development's
development services' office or the legal office, communications
office, finance office, legislative affairs office, or human
resources office of the department of development services agency;
(3)(c) Personnel employed in the technology division of the
department agency.
Sec. 122.011. (A) The department of development services
agency shall develop and promote plans and programs designed to
assure that state resources are efficiently used, economic growth
is properly balanced, community growth is developed in an orderly
manner, and local governments are coordinated with each other and
the state, and for such purposes may do all of the following:
(1) Serve as a clearinghouse for information, data, and other
materials that may be helpful or necessary to persons or local
governments, as provided in section 122.07 122.073 of the Revised
Code;
(2) Prepare and activate plans for the retention,
development, expansion, and use of the resources and commerce of
the state, as provided in section 122.04 of the Revised Code;
(3) Assist and cooperate with federal, state, and local
governments and agencies of federal, state, and local governments
in the coordination of programs to carry out the functions and
duties of the department agency;
(4) Encourage and foster research and development activities,
conduct studies related to the solution of community problems, and
develop recommendations for administrative or legislative actions,
as provided in section 122.03 of the Revised Code;
(5) Serve as the economic and community development planning
agency, which shall prepare and recommend plans and programs for
the orderly growth and development of this state and which shall
provide planning assistance, as provided in section 122.06 of the
Revised Code;
(6) Cooperate with and provide technical assistance to state
departments, political subdivisions, regional and local planning
commissions, tourist associations, councils of government,
community development groups, community action agencies, and other
appropriate organizations for carrying out the functions and
duties of the department development services agency or for the
solution of community problems;
(7) Coordinate the activities of state agencies that have an
impact on carrying out the functions and duties of the department
development services agency;
(8) Encourage and assist the efforts of and cooperate with
local governments to develop mutual and cooperative solutions to
their common problems that relate to carrying out the purposes of
this section;
(9) Study existing structure, operations, and financing of
regional or local government and those state activities that
involve significant relations with regional or local governmental
units, recommend to the governor and to the general assembly such
changes in these provisions and activities as will improve the
operations of regional or local government, and conduct other
studies of legal provisions that affect problems related to
carrying out the purposes of this section;
(10) Create and operate a division of community development
to develop and administer programs and activities that are
authorized by federal statute or the Revised Code;
(11) Until October 15, 2007, establish fees and charges, in
consultation with the director of agriculture, for purchasing
loans from financial institutions and providing loan guarantees
under the family farm loan program created under sections 901.80
to 901.83 of the Revised Code;
(12) Provide loan servicing for the loans purchased and loan
guarantees provided under section 901.80 of the Revised Code as
that section existed prior to October 15, 2007;
(13) Until October 15, 2007, and upon approval by the
controlling board under division (A)(3) of section 901.82 of the
Revised Code of the release of money to be used for purchasing a
loan or providing a loan guarantee, request the release of that
money in accordance with division (B) of section 166.03 of the
Revised Code for use for the purposes of the fund created by
section 166.031 of the Revised Code.
(14) Allocate that portion of the national recovery zone
economic development bond limitation and that portion of the
national recovery zone facility bond limitation that has been
allocated to the state under section 1400U-1 of the Internal
Revenue Code, 26 U.S.C. 1400U-1. If any county or municipal
corporation waives any portion of an allocation it receives under
division (A)(14) of this section, the department agency may
reallocate that amount. Any allocation or reallocation shall be
made in accordance with this section and section 1400U-1 of the
Internal Revenue Code.
(B) The director of development services may request the
attorney general to, and the attorney general, in accordance with
section 109.02 of the Revised Code, shall bring a civil action in
any court of competent jurisdiction. The director may be sued in
the director's official capacity, in connection with this chapter,
in accordance with Chapter 2743. of the Revised Code.
(C) The director of development shall execute a contract
pursuant to section 187.04 of the Revised Code with the nonprofit
corporation formed under section 187.01 of the Revised Code, and
may execute any additional contracts with the corporation
providing for the corporation to assist the director or department
agency in carrying out any duties of the director or department
agency under this chapter, under any other provision of the
Revised Code dealing with economic development, or under a
contract with the director, subject to section 187.04 of the
Revised Code.
Sec. 122.07. (A) There is hereby created within the
development services agency an office to be known as the office of
TourismOhio. The office shall be under the supervision of a
director who shall be of equivalent rank of deputy director of the
agency and shall serve at the pleasure of the director of
development services.
(B) The office shall do both of the following:
(1) Promote the state as a travel destination and provide
related services or otherwise carry out the promotional functions
or duties of the agency, as necessary;
(2) Perform an annual return-on-investment study analyzing
the office's success in promoting Ohio tourism. A report
containing the findings of the study shall be submitted to the
governor, the speaker and minority leader of the house of
representatives, and the president and minority leader of the
senate. The report shall also be made available to the public.
Sec. 122.071. (A) The TourismOhio advisory board is hereby
established to advise the director of development services and the
director of the office of TourismOhio on strategies for promoting
tourism in this state. The board shall consist of the chief
investment officer of the nonprofit corporation formed under
section 187.01 of the Revised Code, the director of the office of
TourismOhio, and nine members to be appointed by the governor as
provided in division (B) of this section. All members of the
board, except the director of the office of TourismOhio, shall be
voting members.
(B)(1) The governor shall, within sixty days after the
effective date of this section, appoint to the TourismOhio
advisory board one individual who is a representative of
convention and visitors' bureaus, one individual who is a
representative of the lodging industry, one individual who is a
representative of the restaurant industry, one individual who is a
representative of attractions, one individual who is a
representative of special events and festivals, one individual who
is a representative of agritourism, and three individuals who are
representatives of the tourism industry. Of the initial
appointments, two individuals shall serve a term of one year,
three individuals shall serve a term of two years, and the
remainder shall serve a term of three years. Thereafter, terms of
office shall be for three years. Each individual appointed to the
board shall be a United States citizen.
(2) For purposes of division (B)(1) of this section, an
individual is a "representative of the tourism industry" if the
individual possesses five years or more executive-level experience
in the attractions, lodging, restaurant, transportation, or retail
industry or five years or more executive-level experience with a
destination marketing organization.
(C)(1) Each member of the TourismOhio advisory board shall
hold office from the date of the member's appointment until the
end of the term for which the member is appointed. Vacancies that
occur on the board shall be filled in the manner prescribed for
regular appointments to the board. A member appointed to fill a
vacancy occurring prior to the expiration of the term for which
the member's predecessor was appointed shall hold office for the
remainder of that predecessor's term. A member shall continue in
office subsequent to the expiration date of the member's term
until the member's successor takes office or until sixty days have
elapsed, whichever occurs first. Any member appointed to the board
is eligible for reappointment.
(2) The governor shall designate one member of the board as
chairperson.
(3) Members appointed to the board may be reimbursed for
actual and necessary expenses incurred in connection with their
official duties.
Sec. 122.071 122.072. There is hereby created in the state
treasury the travel and tourism cooperative projects fund
consisting of all money credited or transferred to it and grants,
gifts, and contributions made directly to the director of
development for marketing and promotion of travel and tourism
within it. Money in the fund shall be used to defray costs
incurred by the office of TourismOhio in promoting this state
pursuant to division (F) of section 122.04 and section 122.07 of
the Revised Code as a travel destination.
Sec. 122.07 122.073. (A) The department of development
services agency may do either any of the following:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, recreational,
agricultural, and other advantages and attractions of the state;
(2) Provide technical assistance to public and private
agencies in the preparation of promotional programs designed to
attract business, industry, and tourists to the state;
(3) Enter into cooperative or contractual agreements, through
the director of development services, with any individual,
organization, or business to create, administer, or otherwise be
involved with Ohio tourism-related promotional programs.
Compensation under such agreements shall be determined by the
director and may include deferred compensation. This compensation
is payable from the tourism fund created in section 122.072 of the
Revised Code. Any excess revenue generated under such a
cooperative or contractual agreement shall be remitted to the fund
to be reinvested in ongoing tourism marketing initiatives as
authorized by law.
(B) Records related to tourism market research submitted to
or generated by the research office of the division of travel and
tourism of the department of development TourismOhio, and any
information taken for any purpose from such research, are not
public records for the purposes of section 149.43 of the Revised
Code. The department agency may use, however, such tourism market
research in a public report if the director of the department
determines that issuing and distributing the report would promote
or market the state's travel and tourism industry or otherwise
advance the purposes of this section.
Sec. 122.17. (A) As used in this section:
(1) "Income tax revenue" means the total amount withheld
under section 5747.06 of the Revised Code by the taxpayer during
the taxable year, or during the calendar year that includes the
tax period, from the compensation of each employee employed in the
project to the extent the employee's withholdings are not used to
determine the credit under section 122.171 of the Revised Code.
"Income tax revenue" excludes amounts withheld before the day the
taxpayer becomes eligible for the credit.
(2) "Baseline income tax revenue" means income tax revenue
except that the applicable withholding period is the twelve months
immediately preceding the date the tax credit authority approves
the taxpayer's application or the date the tax credit authority
receives the recommendation described in division (C)(2)(a) of
this section, whichever occurs first, multiplied by the sum of one
plus an annual pay increase factor to be determined by the tax
credit authority. If the taxpayer becomes eligible for the credit
after the first day of the taxpayer's taxable year or after the
first day of the calendar year that includes the tax period, the
taxpayer's baseline income tax revenue for the first such taxable
or calendar year of credit eligibility shall be reduced in
proportion to the number of days during the taxable or calendar
year for which the taxpayer was not eligible for the credit. For
subsequent taxable or calendar years, "baseline income tax
revenue" equals the unreduced baseline income tax revenue for the
preceding taxable or calendar year multiplied by the sum of one
plus the pay increase factor.
(3) "Excess income tax revenue" means income tax revenue
minus baseline income tax revenue.
(B) The tax credit authority may make grants under this
section to foster job creation in this state. Such a grant shall
take the form of a refundable credit allowed against the tax
imposed by section 5725.18, 5729.03, 5733.06, or 5747.02 or levied
under Chapter 5751. of the Revised Code. The credit shall be
claimed for the taxable years or tax periods specified in the
taxpayer's agreement with the tax credit authority under division
(D) of this section. With respect to taxes imposed under section
5733.06 or 5747.02 or Chapter 5751. of the Revised Code, the
credit shall be claimed in the order required under section
5733.98, 5747.98, or 5751.98 of the Revised Code. The amount of
the credit available for a taxable year or for a calendar year
that includes a tax period equals the excess income tax revenue
for that year multiplied by the percentage specified in the
agreement with the tax credit authority. Any credit granted under
this section against the tax imposed by section 5733.06 or 5747.02
of the Revised Code, to the extent not fully utilized against such
tax for taxable years ending prior to 2008, shall automatically be
converted without any action taken by the tax credit authority to
a credit against the tax levied under Chapter 5751. of the Revised
Code for tax periods beginning on or after July 1, 2008, provided
that the person to whom the credit was granted is subject to such
tax. The converted credit shall apply to those calendar years in
which the remaining taxable years specified in the agreement end.
(C)(1) A taxpayer or potential taxpayer who proposes a
project to create new jobs in this state may apply to the tax
credit authority to enter into an agreement for a tax credit under
this section. The director of development services shall prescribe
the form of the application. After receipt of an application, the
authority may enter into an agreement with the taxpayer for a
credit under this section if it determines all of the following:
(1)(a) The taxpayer's project will increase payroll and
income tax revenue;
(2)(b) The taxpayer's project is economically sound and will
benefit the people of this state by increasing opportunities for
employment and strengthening the economy of this state;
(3)(c) Receiving the tax credit is a major factor in the
taxpayer's decision to go forward with the project.
(2)(a) A taxpayer that chooses to begin the project prior to
receiving the determination of the authority may, upon submitting
the taxpayer's application to the authority, request that the
chief investment officer of the nonprofit corporation formed under
section 187.01 of the Revised Code and the director review the
taxpayer's application and recommend to the authority that the
taxpayer's application be considered. As soon as possible after
receiving such a request, the chief investment officer and the
director shall review the taxpayer's application and, if they
determine that the application warrants consideration by the
authority, make that recommendation to the authority not later
than six months after the application is received by the
authority.
(b) The authority shall consider any taxpayer's application
for which it receives a recommendation under division (C)(2)(a) of
this section. If the authority determines that the taxpayer does
not meet all of the criteria set forth in division (C)(1) of this
section, the authority and the development services agency shall
proceed in accordance with rules adopted by the director pursuant
to division (I) of this section.
(D) An agreement under this section shall include all of the
following:
(1) A detailed description of the project that is the subject
of the agreement;
(2) The term of the tax credit, which shall not exceed
fifteen years, and the first taxable year, or first calendar year
that includes a tax period, for which the credit may be claimed;
(3) A requirement that the taxpayer shall maintain operations
at the project location for at least the greater of seven years or
the term of the credit plus three years;
(4) The percentage, as determined by the tax credit
authority, of excess income tax revenue that will be allowed as
the amount of the credit for each taxable year or for each
calendar year that includes a tax period;
(5) The pay increase factor to be applied to the taxpayer's
baseline income tax revenue;
(6) A requirement that the taxpayer annually shall report to
the director of development services employment, tax withholding,
investment, and other information the director needs to perform
the director's duties under this section;
(7) A requirement that the director of development services
annually review the information reported under division (D)(6) of
this section and verify compliance with the agreement; if the
taxpayer is in compliance, a requirement that the director issue a
certificate to the taxpayer stating that the information has been
verified and identifying the amount of the credit that may be
claimed for the taxable or calendar year;
(8) A provision providing that the taxpayer may not relocate
a substantial number of employment positions from elsewhere in
this state to the project location unless the director of
development services determines that the legislative authority of
the county, township, or municipal corporation from which the
employment positions would be relocated has been notified by the
taxpayer of the relocation.
For purposes of this section, the movement of an employment
position from one political subdivision to another political
subdivision shall be considered a relocation of an employment
position unless the employment position in the first political
subdivision is replaced.
(E) If a taxpayer fails to meet or comply with any condition
or requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term
of the tax credit. The reduction of the percentage or term may
take effect in the current taxable or calendar year.
(F) Projects that consist solely of point-of-final-purchase
retail facilities are not eligible for a tax credit under this
section. If a project consists of both point-of-final-purchase
retail facilities and nonretail facilities, only the portion of
the project consisting of the nonretail facilities is eligible for
a tax credit and only the excess income tax revenue from the
nonretail facilities shall be considered when computing the amount
of the tax credit. If a warehouse facility is part of a
point-of-final-purchase retail facility and supplies only that
facility, the warehouse facility is not eligible for a tax credit.
Catalog distribution centers are not considered
point-of-final-purchase retail facilities for the purposes of this
division, and are eligible for tax credits under this section.
(G) Financial statements and other information submitted to
the department of development services agency or the tax credit
authority by an applicant or recipient of a tax credit under this
section, and any information taken for any purpose from such
statements or information, are not public records subject to
section 149.43 of the Revised Code. However, the chairperson of
the authority may make use of the statements and other information
for purposes of issuing public reports or in connection with court
proceedings concerning tax credit agreements under this section.
Upon the request of the tax commissioner or, if the applicant or
recipient is an insurance company, upon the request of the
superintendent of insurance, the chairperson of the authority
shall provide to the commissioner or superintendent any statement
or information submitted by an applicant or recipient of a tax
credit in connection with the credit. The commissioner or
superintendent shall preserve the confidentiality of the statement
or information.
(H) A taxpayer claiming a credit under this section shall
submit to the tax commissioner or, if the taxpayer is an insurance
company, to the superintendent of insurance, a copy of the
director of
development's development services' certificate of
verification under division (D)(7) of this section with the
taxpayer's tax report or return for the taxable year or for the
calendar year that includes the tax period. Failure to submit a
copy of the certificate with the report or return does not
invalidate a claim for a credit if the taxpayer submits a copy of
the certificate to the commissioner or superintendent within sixty
days after the commissioner or superintendent requests it.
(I) The director of development services, after consultation
with the tax commissioner and the superintendent of insurance and
in accordance with Chapter 119. of the Revised Code, shall adopt
rules necessary to implement this section, including rules that
establish a procedure to be followed by the tax credit authority
and the development services agency in the event the authority
considers a taxpayer's application for which it receives a
recommendation under division (C)(2)(a) of this section but does
not approve it. The rules may provide for recipients of tax
credits under this section to be charged fees to cover
administrative costs of the tax credit program. The fees collected
shall be credited to the tax incentive programs operating business
assistance fund created in section 122.174 of the Revised Code. At
the time the director gives public notice under division (A) of
section 119.03 of the Revised Code of the adoption of the rules,
the director shall submit copies of the proposed rules to the
chairpersons of the standing committees on economic development in
the senate and the house of representatives.
(J) For the purposes of this section, a taxpayer may include
a partnership, a corporation that has made an election under
subchapter S of chapter one of subtitle A of the Internal Revenue
Code, or any other business entity through which income flows as a
distributive share to its owners. A partnership, S-corporation, or
other such business entity may elect to pass the credit received
under this section through to the persons to whom the income or
profit of the partnership, S-corporation, or other entity is
distributed. The election shall be made on the annual report
required under division (D)(6) of this section. The election
applies to and is irrevocable for the credit for which the report
is submitted. If the election is made, the credit shall be
apportioned among those persons in the same proportions as those
in which the income or profit is distributed.
(K) If the director of development services determines that a
taxpayer who has received a credit under this section is not
complying with the requirement under division (D)(3) of this
section, the director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving the
taxpayer an opportunity to explain the noncompliance, the tax
credit authority may require the taxpayer to refund to this state
a portion of the credit in accordance with the following:
(1) If the taxpayer maintained operations at the project
location for a period less than or equal to the term of the
credit, an amount not exceeding one hundred per cent of the sum of
any credits allowed and received under this section;
(2) If the taxpayer maintained operations at the project
location for a period longer than the term of the credit, but less
than the greater of seven years or the term of the credit plus
three years, an amount not exceeding seventy-five per cent of the
sum of any credits allowed and received under this section.
In determining the portion of the tax credit to be refunded
to this state, the tax credit authority shall consider the effect
of market conditions on the taxpayer's project and whether the
taxpayer continues to maintain other operations in this state.
After making the determination, the authority shall certify the
amount to be refunded to the tax commissioner or superintendent of
insurance, as appropriate. If the amount is certified to the
commissioner, the commissioner shall make an assessment for that
amount against the taxpayer under Chapter 5733., 5747., or 5751.
of the Revised Code. If the amount is certified to the
superintendent, the superintendent shall make an assessment for
that amount against the taxpayer under Chapter 5725. or 5729. of
the Revised Code. The time limitations on assessments under those
chapters do not apply to an assessment under this division, but
the commissioner or superintendent, as appropriate, shall make the
assessment within one year after the date the authority certifies
to the commissioner or superintendent the amount to be refunded.
(L) On or before the first day of August each year, the
director of development services shall submit a report to the
governor, the president of the senate, and the speaker of the
house of representatives on the tax credit program under this
section. The report shall include information on the number of
agreements that were entered into under this section during the
preceding calendar year, a description of the project that is the
subject of each such agreement, and an update on the status of
projects under agreements entered into before the preceding
calendar year.
(M) There is hereby created the tax credit authority, which
consists of the director of development services and four other
members appointed as follows: the governor, the president of the
senate, and the speaker of the house of representatives each shall
appoint one member who shall be a specialist in economic
development; the governor also shall appoint a member who is a
specialist in taxation. Of the initial appointees, the members
appointed by the governor shall serve a term of two years; the
members appointed by the president of the senate and the speaker
of the house of representatives shall serve a term of four years.
Thereafter, terms of office shall be for four years. Initial
appointments to the authority shall be made within thirty days
after January 13, 1993. Each member shall serve on the authority
until the end of the term for which the member was appointed.
Vacancies shall be filled in the same manner provided for original
appointments. Any member appointed to fill a vacancy occurring
prior to the expiration of the term for which the member's
predecessor was appointed shall hold office for the remainder of
that term. Members may be reappointed to the authority. Members of
the authority shall receive their necessary and actual expenses
while engaged in the business of the authority. The director of
development services shall serve as chairperson of the authority,
and the members annually shall elect a vice-chairperson from among
themselves. Three members of the authority constitute a quorum to
transact and vote on the business of the authority. The majority
vote of the membership of the authority is necessary to approve
any such business, including the election of the vice-chairperson.
The director of development services may appoint a
professional employee of the department of development services
agency to serve as the director's substitute at a meeting of the
authority. The director shall make the appointment in writing. In
the absence of the director from a meeting of the authority, the
appointed substitute shall serve as chairperson. In the absence of
both the director and the director's substitute from a meeting,
the vice-chairperson shall serve as chairperson.
(N) For purposes of the credits granted by this section
against the taxes imposed under sections 5725.18 and 5729.03 of
the Revised Code, "taxable year" means the period covered by the
taxpayer's annual statement to the superintendent of insurance.
Sec. 122.171. (A) As used in this section:
(1) "Capital investment project" means a plan of investment
at a project site for the acquisition, construction, renovation,
or repair of buildings, machinery, or equipment, or for
capitalized costs of basic research and new product development
determined in accordance with generally accepted accounting
principles, but does not include any of the following:
(a) Payments made for the acquisition of personal property
through operating leases;
(b) Project costs paid before January 1, 2002;
(c) Payments made to a related member as defined in section
5733.042 of the Revised Code or to a consolidated elected taxpayer
or a combined taxpayer as defined in section 5751.01 of the
Revised Code.
(2) "Eligible business" means a taxpayer and its related
members with Ohio operations satisfying all of the following:
(a) The taxpayer employs at least five hundred full-time
equivalent employees or has an annual payroll of at least
thirty-five million dollars at the time the tax credit authority
grants the tax credit under this section;
(b) The taxpayer makes or causes to be made payments for the
capital investment project of one of the following:
(i) If the taxpayer is engaged at the project site primarily
as a manufacturer, at least fifty million dollars in the aggregate
at the project site during a period of three consecutive calendar
years, including the calendar year that includes a day of the
taxpayer's taxable year or tax period with respect to which the
credit is granted;
(ii) If the taxpayer is engaged at the project site primarily
in significant corporate administrative functions, as defined by
the director of development services by rule, at least twenty
million dollars in the aggregate at the project site during a
period of three consecutive calendar years including the calendar
year that includes a day of the taxpayer's taxable year or tax
period with respect to which the credit is granted;
(iii) If the taxpayer is applying to enter into an agreement
for a tax credit authorized under division (B)(3) of this section,
at least five million dollars in the aggregate at the project site
during a period of three consecutive calendar years, including the
calendar year that includes a day of the taxpayer's taxable year
or tax period with respect to which the credit is granted.
(c) The taxpayer had a capital investment project reviewed
and approved by the tax credit authority as provided in divisions
(C), (D), and (E) of this section.
(3) "Full-time equivalent employees" means the quotient
obtained by dividing the total number of hours for which employees
were compensated for employment in the project by two thousand
eighty. "Full-time equivalent employees" shall exclude hours that
are counted for a credit under section 122.17 of the Revised Code.
(4) "Income tax revenue" means the total amount withheld
under section 5747.06 of the Revised Code by the taxpayer during
the taxable year, or during the calendar year that includes the
tax period, from the compensation of all employees employed in the
project whose hours of compensation are included in calculating
the number of full-time equivalent employees.
(5) "Manufacturer" has the same meaning as in section
5739.011 of the Revised Code.
(6) "Project site" means an integrated complex of facilities
in this state, as specified by the tax credit authority under this
section, within a fifteen-mile radius where a taxpayer is
primarily operating as an eligible business.
(7) "Related member" has the same meaning as in section
5733.042 of the Revised Code as that section existed on the
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd
general assembly, September 29, 1997.
(8) "Taxable year" includes, in the case of a domestic or
foreign insurance company, the calendar year ending on the
thirty-first day of December preceding the day the superintendent
of insurance is required to certify to the treasurer of state
under section 5725.20 or 5729.05 of the Revised Code the amount of
taxes due from insurance companies.
(B) The tax credit authority created under section 122.17 of
the Revised Code may grant tax credits under this section for the
purpose of fostering job retention in this state. Upon application
by an eligible business and upon consideration of the
recommendation of the director of budget and management, tax
commissioner, the superintendent of insurance in the case of an
insurance company, and director of development services under
division (C) of this section, the tax credit authority may grant
the following credits against the tax imposed by section 5725.18,
5729.03, 5733.06, 5747.02, or 5751.02 of the Revised Code:
(1) A nonrefundable credit to an eligible business;
(2) A refundable credit to an eligible business meeting the
following conditions, provided that the director of budget and
management, tax commissioner, superintendent of insurance in the
case of an insurance company, and director of development services
have recommended the granting of the credit to the tax credit
authority before July 1, 2011:
(a) The business retains at least one thousand full-time
equivalent employees at the project site.
(b) The business makes or causes to be made payments for a
capital investment project of at least twenty-five million dollars
in the aggregate at the project site during a period of three
consecutive calendar years, including the calendar year that
includes a day of the business' taxable year or tax period with
respect to which the credit is granted.
(c) In 2010, the business received a written offer of
financial incentives from another state of the United States that
the director determines to be sufficient inducement for the
business to relocate the business' operations from this state to
that state.
(3) A refundable credit to an eligible business with a total
annual payroll of at least twenty million dollars, provided that
the tax credit authority grants the tax credit on or after July 1,
2011, and before January 1, 2014.
The credits authorized in divisions (B)(1), (2), and (3) of
this section may be granted for a period up to fifteen taxable
years or, in the case of the tax levied by section 5751.02 of the
Revised Code, for a period of up to fifteen calendar years. The
credit amount for a taxable year or a calendar year that includes
the tax period for which a credit may be claimed equals the income
tax revenue for that year multiplied by the percentage specified
in the agreement with the tax credit authority. The percentage may
not exceed seventy-five per cent. The credit shall be claimed in
the order required under section 5725.98, 5729.98, 5733.98,
5747.98, or 5751.98 of the Revised Code. In determining the
percentage and term of the credit, the tax credit authority shall
consider both the number of full-time equivalent employees and the
value of the capital investment project. The credit amount may
not be based on the income tax revenue for a calendar year before
the calendar year in which the tax credit authority specifies the
tax credit is to begin, and the credit shall be claimed only for
the taxable years or tax periods specified in the eligible
business' agreement with the tax credit authority. In no event
shall the credit be claimed for a taxable year or tax period
terminating before the date specified in the agreement. Any credit
granted under this section against the tax imposed by section
5733.06 or 5747.02 of the Revised Code, to the extent not fully
utilized against such tax for taxable years ending prior to 2008,
shall automatically be converted without any action taken by the
tax credit authority to a credit against the tax levied under
Chapter 5751. of the Revised Code for tax periods beginning on or
after July 1, 2008, provided that the person to whom the credit
was granted is subject to such tax. The converted credit shall
apply to those calendar years in which the remaining taxable years
specified in the agreement end.
If a nonrefundable credit allowed under division (B)(1) of
this section for a taxable year or tax period exceeds the
taxpayer's tax liability for that year or period, the excess may
be carried forward for the three succeeding taxable or calendar
years, but the amount of any excess credit allowed in any taxable
year or tax period shall be deducted from the balance carried
forward to the succeeding year or period.
(C) A taxpayer that proposes a capital investment project to
retain jobs in this state may apply to the tax credit authority to
enter into an agreement for a tax credit under this section. The
director of development services shall prescribe the form of the
application. After receipt of an application, the authority shall
forward copies of the application to the director of budget and
management, the tax commissioner, the superintendent of insurance
in the case of an insurance company, and the director of
development services, each of whom shall review the application to
determine the economic impact the proposed project would have on
the state and the affected political subdivisions and shall submit
a summary of their determinations and recommendations to the
authority.
(D) Upon review and consideration of the determinations and
recommendations described in division (C) of this section, the tax
credit authority may enter into an agreement with the taxpayer for
a credit under this section if the authority determines all of the
following:
(1) The taxpayer's capital investment project will result in
the retention of employment in this state.
(2) The taxpayer is economically sound and has the ability to
complete the proposed capital investment project.
(3) The taxpayer intends to and has the ability to maintain
operations at the project site for at least the greater of (a) the
term of the credit plus three years, or (b) seven years.
(4) Receiving the credit is a major factor in the taxpayer's
decision to begin, continue with, or complete the project.
(5) If the taxpayer is applying to enter into an agreement
for a tax credit authorized under division (B)(3) of this section,
the taxpayer's capital investment project will be located in the
political subdivision in which the taxpayer maintains its
principal place of business.
(E) An agreement under this section shall include all of the
following:
(1) A detailed description of the project that is the subject
of the agreement, including the amount of the investment, the
period over which the investment has been or is being made, the
number of full-time equivalent employees at the project site, and
the anticipated income tax revenue to be generated.
(2) The term of the credit, the percentage of the tax credit,
the maximum annual value of tax credits that may be allowed each
year, and the first year for which the credit may be claimed.
(3) A requirement that the taxpayer maintain operations at
the project site for at least the greater of (a) the term of the
credit plus three years, or (b) seven years.
(4)(a) In the case of a credit granted under division (B)(1)
of this section, a requirement that the taxpayer retain at least
five hundred full-time equivalent employees at the project site
and within this state for the entire term of the credit, or a
requirement that the taxpayer maintain an annual payroll of at
least thirty-five million dollars for the entire term of the
credit;
(b) In the case of a credit granted under division (B)(2) of
this section, a requirement that the taxpayer retain at least one
thousand full-time equivalent employees at the project site and
within this state for the entire term of the credit;
(c) In the case of a credit granted under division (B)(3) of
this section, either of the following:
(i) A requirement that the taxpayer retain at least five
hundred full-time equivalent employees at the project site and
within this state for the entire term of the credit and a
requirement that the taxpayer maintain an annual payroll of at
least twenty million dollars for the entire term of the credit;
(ii) A requirement that the taxpayer maintain an annual
payroll of at least thirty-five million dollars for the entire
term of the credit.
(5) A requirement that the taxpayer annually report to the
director of development services employment, tax withholding,
capital investment, and other information the director needs to
perform the director's duties under this section.
(6) A requirement that the director of development services
annually review the annual reports of the taxpayer to verify the
information reported under division (E)(5) of this section and
compliance with the agreement. Upon verification, the director
shall issue a certificate to the taxpayer stating that the
information has been verified and identifying the amount of the
credit for the taxable year or calendar year that includes the tax
period. In determining the number of full-time equivalent
employees, no position shall be counted that is filled by an
employee who is included in the calculation of a tax credit under
section 122.17 of the Revised Code.
(7) A provision providing that the taxpayer may not relocate
a substantial number of employment positions from elsewhere in
this state to the project site unless the director of development
services determines that the taxpayer notified the legislative
authority of the county, township, or municipal corporation from
which the employment positions would be relocated.
For purposes of this section, the movement of an employment
position from one political subdivision to another political
subdivision shall be considered a relocation of an employment
position unless the movement is confined to the project site. The
transfer of an employment position from one political subdivision
to another political subdivision shall not be considered a
relocation of an employment position if the employment position in
the first political subdivision is replaced by another employment
position.
(8) A waiver by the taxpayer of any limitations periods
relating to assessments or adjustments resulting from the
taxpayer's failure to comply with the agreement.
(F) If a taxpayer fails to meet or comply with any condition
or requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term
of the credit. The reduction of the percentage or term may take
effect in the current taxable or calendar year.
(G) Financial statements and other information submitted to
the department of development services or the tax credit authority
by an applicant for or recipient of a tax credit under this
section, and any information taken for any purpose from such
statements or information, are not public records subject to
section 149.43 of the Revised Code. However, the chairperson of
the authority may make use of the statements and other information
for purposes of issuing public reports or in connection with court
proceedings concerning tax credit agreements under this section.
Upon the request of the tax commissioner, or the superintendent of
insurance in the case of an insurance company, the chairperson of
the authority shall provide to the commissioner or superintendent
any statement or other information submitted by an applicant for
or recipient of a tax credit in connection with the credit. The
commissioner or superintendent shall preserve the confidentiality
of the statement or other information.
(H) A taxpayer claiming a tax credit under this section shall
submit to the tax commissioner or, in the case of an insurance
company, to the superintendent of insurance, a copy of the
director of development's development services' certificate of
verification under division (E)(6) of this section with the
taxpayer's tax report or return for the taxable year or for the
calendar year that includes the tax period. Failure to submit a
copy of the certificate with the report or return does not
invalidate a claim for a credit if the taxpayer submits a copy of
the certificate to the commissioner or superintendent within sixty
days after the commissioner or superintendent requests it.
(I) For the purposes of this section, a taxpayer may include
a partnership, a corporation that has made an election under
subchapter S of chapter one of subtitle A of the Internal Revenue
Code, or any other business entity through which income flows as a
distributive share to its owners. A partnership, S-corporation, or
other such business entity may elect to pass the credit received
under this section through to the persons to whom the income or
profit of the partnership, S-corporation, or other entity is
distributed. The election shall be made on the annual report
required under division (E)(5) of this section. The election
applies to and is irrevocable for the credit for which the report
is submitted. If the election is made, the credit shall be
apportioned among those persons in the same proportions as those
in which the income or profit is distributed.
(J) If the director of development services determines that a
taxpayer that received a tax credit under this section is not
complying with the requirement under division (E)(3) of this
section, the director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving the
taxpayer an opportunity to explain the noncompliance, the
authority may terminate the agreement and require the taxpayer to
refund to the state all or a portion of the credit claimed in
previous years, as follows:
(1) If the taxpayer maintained operations at the project site
for less than or equal to the term of the credit, an amount not to
exceed one hundred per cent of the sum of any tax credits allowed
and received under this section.
(2) If the taxpayer maintained operations at the project site
longer than the term of the credit, but less than the greater of
(a) the term of the credit plus three years, or (b) seven years,
the amount required to be refunded shall not exceed seventy-five
per cent of the sum of any tax credits allowed and received under
this section.
In determining the portion of the credit to be refunded to
this state, the authority shall consider the effect of market
conditions on the taxpayer's project and whether the taxpayer
continues to maintain other operations in this state. After making
the determination, the authority shall certify the amount to be
refunded to the tax commissioner or the superintendent of
insurance. If the taxpayer is not an insurance company, the
commissioner shall make an assessment for that amount against the
taxpayer under Chapter 5733., 5747., or 5751. of the Revised Code.
If the taxpayer is an insurance company, the superintendent of
insurance shall make an assessment under section 5725.222 or
5729.102 of the Revised Code. The time limitations on assessments
under those chapters and sections do not apply to an assessment
under this division, but the commissioner or superintendent shall
make the assessment within one year after the date the authority
certifies to the commissioner or superintendent the amount to be
refunded.
(K) The director of development services, after consultation
with the tax commissioner and the superintendent of insurance and
in accordance with Chapter 119. of the Revised Code, shall adopt
rules necessary to implement this section. The rules may provide
for recipients of tax credits under this section to be charged
fees to cover administrative costs of the tax credit program. The
fees collected shall be credited to the tax incentive programs
operating business assistance fund created in section 122.174 of
the Revised Code. At the time the director gives public notice
under division (A) of section 119.03 of the Revised Code of the
adoption of the rules, the director shall submit copies of the
proposed rules to the chairpersons of the standing committees on
economic development in the senate and the house of
representatives.
(L) On or before the first day of August of each year, the
director of development services shall submit a report to the
governor, the president of the senate, and the speaker of the
house of representatives on the tax credit program under this
section. The report shall include information on the number of
agreements that were entered into under this section during the
preceding calendar year, a description of the project that is the
subject of each such agreement, and an update on the status of
projects under agreements entered into before the preceding
calendar year.
(M)(1) The aggregate amount of tax credits issued under
division (B)(1) of this section during any calendar year for
capital investment projects reviewed and approved by the tax
credit authority may not exceed the following amounts:
(a) For 2010, thirteen million dollars;
(b) For 2011 through 2023, the amount of the limit for the
preceding calendar year plus thirteen million dollars;
(c) For 2024 and each year thereafter, one hundred
ninety-five million dollars.
(2) The aggregate amount of tax credits authorized under
divisions (B)(2) and (3) of this section and allowed to be claimed
by taxpayers in any calendar year for capital improvement projects
reviewed and approved by the tax credit authority in 2011, 2012,
and 2013 combined shall not exceed twenty-five million dollars. An
amount equal to the aggregate amount of credits first authorized
in calendar year 2011, 2012, and 2013 may be claimed over the
ensuing period up to fifteen years, subject to the terms of
individual tax credit agreements.
The limitations in division (M) of this section do not apply
to credits for capital investment projects approved by the tax
credit authority before July 1, 2009.
Sec. 122.174. There is hereby created in the state treasury
the tax incentive programs operating business assistance fund.
Money collected The fund shall consist of any amounts appropriated
to it and money credited to the fund pursuant to division (I) of
section 121.17, division (K) of section 122.171, division (K) of
section 122.175, division (C) of section 3735.672, and division
(C) of section 5709.68 of the Revised Code shall be credited to
the fund. The director of development services shall use money in
the fund to pay expenses related to the administration of the tax
credit programs authorized by sections 122.17, 122.171, 3735.672,
and 5709.68 of the Revised Code business services division of the
development services agency.
Sec. 122.175. (A) As used in this section:
(1) "Capital investment project" means a plan of investment
at a project site for the acquisition, construction, renovation,
expansion, replacement, or repair of a computer data center or of
computer data center equipment, but does not include any of the
following:
(a) Project costs paid before a date determined by the tax
credit authority for each capital investment project;
(b) Payments made to a related member as defined in section
5733.042 of the Revised Code or to a consolidated elected taxpayer
or a combined taxpayer as defined in section 5751.01 of the
Revised Code.
(2) "Computer data center" means a facility used or to be
used primarily to house computer data center equipment used or to
be used in conducting a computer data center business, as
determined by the tax credit authority.
(3) "Computer data center business" means, as may be further
determined by the tax credit authority, a business that provides
electronic information services as defined in division (Y)(1)(c)
of section 5739.01 of the Revised Code. "Computer data center
business" does not include providing electronic publishing as
defined in division (LLL) of that section.
(4) "Computer data center equipment" means tangible personal
property used or to be used for any of the following:
(a) To conduct a computer data center business, including
equipment cooling systems to manage the performance of computer
data center equipment;
(b) To generate, transform, transmit, distribute, or manage
electricity necessary to operate the tangible personal property
used or to be used in conducting a computer data center business;
(c) As building and construction materials sold to
construction contractors for incorporation into a computer data
center.
(5) "Eligible computer data center" means a computer data
center that satisfies all of the following requirements:
(a) The taxpayer will make payments for a capital investment
project of at least one hundred million dollars in the aggregate
at the project site during a period of three consecutive calendar
years;
(b) The taxpayer will pay annual compensation that is subject
to the withholding obligation imposed under section 5747.06 of the
Revised Code of at least five million dollars to employees
employed at the project site for the term of the agreement.
(6) "Person" has the same meaning as in section 5701.01 of
the Revised Code.
(7) "Project site," "related member," and "tax credit
authority" have the same meanings as in sections 122.17 and
122.171 of the Revised Code.
(8) "Taxpayer" means any person subject to the taxes imposed
under Chapters 5739. and 5741. of the Revised Code.
(B) The tax credit authority may completely or partially
exempt from the taxes levied under Chapters 5739. and 5741. of the
Revised Code the sale, storage, use, or other consumption of
computer data center equipment used or to be used at an eligible
computer data center. Any such exemption shall extend to charges
for the delivery, installation, or repair of the computer data
center equipment subject to the exemption under this section.
(C) A taxpayer that proposes a capital improvement project
for an eligible computer data center in this state may apply to
the tax credit authority to enter into an agreement under this
section for a complete or partial exemption from the taxes imposed
under Chapters 5739. and 5741. of the Revised Code on computer
data center equipment used or to be used at the eligible computer
data center. The director of development services shall prescribe
the form of the application. After receipt of an application, the
authority shall forward copies of the application to the director
of budget and management, the tax commissioner, and the director
of development services, each of whom shall review the application
to determine the economic impact that the proposed eligible
computer data center would have on the state and any affected
political subdivisions and submit to the authority a summary of
their determinations and recommendations.
(D) Upon review and consideration of such determinations and
recommendations, the tax credit authority may enter into an
agreement with the taxpayer for a complete or partial exemption
from the taxes imposed under Chapters 5739. and 5741. of the
Revised Code on computer data center equipment used or to be used
at an eligible computer data center if the authority determines
all of the following:
(1) The taxpayer's capital investment project for the
eligible computer data center will increase payroll and the amount
of income taxes to be withheld from employee compensation pursuant
to section 5747.06 of the Revised Code.
(2) The taxpayer is economically sound and has the ability to
complete the proposed capital investment project.
(3) The taxpayer intends to and has the ability to maintain
operations at the project site for the term of the agreement.
(4) Receiving the exemption is a major factor in the
taxpayer's decision to begin, continue with, or complete the
capital investment project.
(E) An agreement entered into under this section shall
include all of the following:
(1) A detailed description of the capital investment project
that is the subject of the agreement, including the amount of the
investment, the period over which the investment has been or is
being made, the annual compensation to be paid by the taxpayer to
its employees at the project site, and the anticipated amount of
income taxes to be withheld from employee compensation pursuant to
section 5747.06 of the Revised Code.
(2) The percentage of the exemption from the taxes imposed
under Chapters 5739. and 5741. of the Revised Code for the
computer data center equipment used or to be used at the eligible
computer data center, the length of time the computer data center
equipment will be exempted, and the first date on which the
exemption applies.
(3) A requirement that the taxpayer maintain the computer
data center as an eligible computer data center during the term of
the agreement and that the taxpayer maintain operations at the
eligible computer data center during that term.
(4) A requirement that during each year of the term of the
agreement the taxpayer pay annual compensation that is subject to
the withholding obligation imposed under section 5747.06 of the
Revised Code of at least five million dollars to its employees at
the eligible computer data center.
(5) A requirement that the taxpayer annually report to the
director of development services employment, tax withholding,
capital investment, and other information required by the director
to perform the director's duties under this section.
(6) A requirement that the director of development services
annually review the annual reports of the taxpayer to verify the
information reported under division (E)(5) of this section and
compliance with the agreement. Upon verification, the director
shall issue a certificate to the taxpayer stating that the
information has been verified and that the taxpayer remains
eligible for the exemption specified in the agreement.
(7) A provision providing that the taxpayer may not relocate
a substantial number of employment positions from elsewhere in
this state to the project site unless the director of development
services determines that the taxpayer notified the legislative
authority of the county, township, or municipal corporation from
which the employment positions would be relocated. For purposes of
this paragraph, the movement of an employment position from one
political subdivision to another political subdivision shall be
considered a relocation of an employment position unless the
movement is confined to the project site. The transfer of an
employment position from one political subdivision to another
political subdivision shall not be considered a relocation of an
employment position if the employment position in the first
political subdivision is replaced by another employment position.
(8) A waiver by the taxpayer of any limitations periods
relating to assessments or adjustments resulting from the
taxpayer's failure to comply with the agreement.
(F) The term of an agreement under this section shall be
determined by the tax credit authority, and the amount of the
exemption shall not exceed one hundred per cent of such taxes that
would otherwise be owed in respect to the exempted computer data
center equipment.
(G) If a taxpayer fails to meet or comply with any condition
or requirement set forth in an agreement under this section, the
tax credit authority may amend the agreement to reduce the
percentage of the exemption or term during which the exemption
applies to the computer data center equipment used or to be used
at an eligible computer data center. The reduction of the
percentage or term may take effect in the current calendar year.
(H) Financial statements and other information submitted to
the department of development services or the tax credit authority
by an applicant for or recipient of an exemption under this
section, and any information taken for any purpose from such
statements or information, are not public records subject to
section 149.43 of the Revised Code. However, the chairperson of
the authority may make use of the statements and other information
for purposes of issuing public reports or in connection with court
proceedings concerning tax exemption agreements under this
section. Upon the request of the tax commissioner, the chairperson
of the authority shall provide to the tax commissioner any
statement or other information submitted by an applicant for or
recipient of an exemption under this section. The tax commissioner
shall preserve the confidentiality of the statement or other
information.
(I) The tax commissioner shall issue a direct payment permit
under section 5739.031 of the Revised Code to a taxpayer that
enters into an agreement under this section. Such direct payment
permit shall authorize the taxpayer to pay any sales and use taxes
due on purchases of computer data center equipment used or to be
used in an eligible computer data center and to pay any sales and
use taxes due on purchases of tangible personal property or
taxable services other than computer data center equipment used or
to be used in an eligible computer data center directly to the tax
commissioner. Each taxpayer shall pay pursuant to such direct
payment permit all sales tax levied on such purchases under
sections 5739.02, 5739.021, 5739.023, and 5739.026 of the Revised
Code and all use tax levied on such purchases under sections
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code,
consistent with the terms of the agreement entered into under this
section.
During the term of an agreement under this section the
taxpayer shall submit to the tax commissioner a return that shows
the amount of computer data center equipment purchased for use at
the eligible computer data center, the amount of tangible personal
property and taxable services other than computer data center
equipment purchased for use at the eligible computer data center,
the amount of tax under Chapter 5739. or 5741. of the Revised Code
that would be due in the absence of the agreement under this
section, the exemption percentage for computer data center
equipment specified in the agreement, and the amount of tax due
under Chapter 5739. or 5741. of the Revised Code as a result of
the agreement under this section. The taxpayer shall pay the tax
shown on the return to be due in the manner and at the times as
may be further prescribed by the tax commissioner. The taxpayer
shall include a copy of the director of development's development
services' certificate of verification issued under division (E)(6)
of this section. Failure to submit a copy of the certificate with
the return does not invalidate the claim for exemption if the
taxpayer submits a copy of the certificate to the tax commissioner
within sixty days after the tax commissioner requests it.
(J) If the director of development services determines that a
taxpayer that received an exemption under this section is not
complying with the requirement under division (E)(3) of this
section, the director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving the
taxpayer an opportunity to explain the noncompliance, the
authority may terminate the agreement and require the taxpayer to
pay to the state all or a portion of the taxes that would have
been owed in regards to the exempt equipment in previous years,
all as determined under rules adopted pursuant to division (K) of
this section. In determining the portion of the taxes that would
have been owed on the previously exempted equipment to be paid to
this state by the taxpayer, the authority shall consider the
effect of market conditions on the taxpayer's eligible computer
data center and whether the taxpayer continues to maintain other
operations in this state. After making the determination, the
authority shall certify to the tax commissioner the amount to be
paid by the taxpayer. The tax commissioner shall make an
assessment for that amount against the taxpayer under Chapter
5739. or 5741. of the Revised Code. The time limitations on
assessments under those chapters do not apply to an assessment
under this division, but the tax commissioner shall make the
assessment within one year after the date the authority certifies
to the tax commissioner the amount to be paid by the taxpayer.
(K) The director of development services, after consultation
with the tax commissioner and in accordance with Chapter 119. of
the Revised Code, shall adopt rules necessary to implement this
section. The rules may provide for recipients of tax exemptions
under this section to be charged fees to cover administrative
costs incurred in the administration of this section. The fees
collected shall be credited to the tax incentive programs
operating business assistance fund created in section 122.174 of
the Revised Code. At the time the director gives public notice
under division (A) of section 119.03 of the Revised Code of the
adoption of the rules, the director shall submit copies of the
proposed rules to the chairpersons of the standing committees on
economic development in the senate and the house of
representatives.
(L) On or before the first day of August of each year, the
director of development services shall submit a report to the
governor, the president of the senate, and the speaker of the
house of representatives on the tax exemption authorized under
this section. The report shall include information on the number
of agreements that were entered into under this section during the
preceding calendar year, a description of the eligible computer
data center that is the subject of each such agreement, and an
update on the status of eligible computer data centers under
agreements entered into before the preceding calendar year.
Sec. 122.39. As used in sections 122.39 and 122.41 to 122.62
of the Revised Code:
(A) "Financial institution" means any banking corporation,
trust company, insurance company, savings and loan association,
building and loan association, or corporation, partnership,
federal lending agency, foundation, or other institution engaged
in lending or investing funds for industrial or business purposes.
(B) "Project" means any real or personal property connected
with or being a part of an industrial, distribution, commercial,
or research facility to be acquired, constructed, reconstructed,
enlarged, improved, furnished, or equipped, or any combination
thereof, with aid furnished pursuant to Chapter 122. of the
Revised Code, for industrial, commercial, distribution, and
research development of the state.
(C) "Community improvement corporation" means a corporation
organized under Chapter 1724. of the Revised Code.
(D) "Ohio development corporation" means a corporation
organized under Chapter 1726. of the Revised Code.
(E) "Mortgage" means the lien imposed on a project by a
mortgage on real property, or by financing statements on personal
property, or by a combination of a mortgage and financing
statements when a project consists of both real and personal
property.
(F) "Mortgagor" means the principal user of a project or the
person, corporation, partnership, or association unconditionally
guaranteeing performance by such principal user of its obligations
under the mortgage.
Sec. 122.41. (A) The development financing advisory council
and the director of development are services is invested with the
powers and duties provided in Chapter 122. of the Revised Code, in
order to promote the welfare of the people of the state, to
stabilize the economy, to provide employment, to assist in the
development within the state of industrial, commercial,
distribution, and research activities required for the people of
the state, and for their gainful employment, or otherwise to
create or preserve jobs and employment opportunities, or improve
the economic welfare of the people of the state, and also to
assist in the financing of air, water, or thermal pollution
control facilities and solid waste disposal facilities by mortgage
insurance as provided in section 122.451 of the Revised Code. It
is hereby determined that the accomplishment of such purposes is
essential so that the people of the state may maintain their
present high standards in comparison with the people of other
states and so that opportunities for employment and for favorable
markets for the products of the state's natural resources,
agriculture, and manufacturing shall be improved and that it is
necessary for the state to establish the programs authorized
pursuant to Chapter 122. of the Revised Code, to establish the
development financing advisory council, and
to invest
it and the
director of development services with the powers and duties
provided in Chapter 122. of the Revised Code. The powers granted
to the director of development by Chapter 165. of the Revised Code
are independent of and in addition and alternate to, and are not
limited or restricted by, Chapter 122. of the Revised Code.
(B) The development financing advisory council shall:
(1) Make recommendations to the director of development as to
applications for assistance pursuant to sections 122.39 to 122.62
or Chapter 166. of the Revised Code. The council may revise its
recommendations to reflect any changes in the proposed assistance
made by the director.
(2) Advise the director in the administration of sections
122.39 to 122.62 and Chapter 166. of the Revised Code;
(3) Adopt bylaws to govern the conduct of the council's
business.
Sec. 122.42. (A) The director of development services shall
do all of the following:
(1) Receive applications for assistance under sections 122.39
and 122.41 to 122.62 of the Revised Code, and, after processing,
forward them to the development financing advisory board together
with necessary supporting information;
(2) Receive the recommendations of the board and make Make a
final determination whether to approve the application for
assistance;
(3) Transmit determinations to approve assistance to the
controlling board together with any information the controlling
board requires for the board's review and decision as to whether
to approve the assistance;
(4) Issue revenue bonds of the state through the treasurer of
state, as necessary, payable solely from revenues and other
sources as provided in sections 122.39 and 122.41 to 122.62 of the
Revised Code.
(B) The director may do all of the following:
(1) Fix the rate of interest and charges to be made upon or
with respect to moneys loaned by the director and the terms upon
which mortgages and lease rentals may be guaranteed and the rates
of charges to be made for the loans and guarantees and to make
provisions for the operation of the funds established by the
director in accordance with this section and sections 122.54,
122.55, 122.56, and 122.57 of the Revised Code;
(2) Loan moneys from the fund established in accordance with
section 122.54 of the Revised Code pursuant to and in compliance
with sections 122.39 and 122.41 to 122.62 of the Revised Code;
(3) Acquire in the name of the director any property of any
kind or character in accordance with sections 122.39 and 122.41 to
122.62 of the Revised Code, by purchase, purchase at foreclosure,
or exchange on such terms and in such manner as the director
considers proper;
(4) Make and enter into all contracts and agreements
necessary or incidental to the performance of the director's
duties and the exercise of the director's powers under sections
122.39 and 122.41 to 122.62 of the Revised Code;
(5) Maintain, protect, repair, improve, and insure any
property which the director has acquired and dispose of the same
by sale, exchange, or lease for the consideration and on the terms
and in the manner as the director considers proper, but is not
authorized to operate any such property as a business except as
the lessor of the property;
(6)(a) When the cost of any contract for the maintenance,
protection, repair, or improvement of any property held by the
director other than compensation for personal services involves an
expenditure of more than one thousand dollars, the director shall
make a written contract with the lowest responsive and responsible
bidder in accordance with section 9.312 of the Revised Code after
advertisement for not less than two consecutive weeks in a
newspaper of general circulation in the county where such
contract, or some substantial part of it, is to be performed, and
in such other publications as the director determines, which
notice shall state the general character of the work and the
general character of the materials to be furnished, the place
where plans and specifications may be examined, and the time and
place of receiving bids.
(b) Each bid for a contract for the construction, demolition,
alteration, repair, or reconstruction of an improvement shall
contain the full name of every person interested in it and meet
the requirements of section 153.54 of the Revised Code.
(c) Each bid for a contract, except as provided in division
(B)(6)(b) of this section, shall contain the full name of every
person interested in it and shall be accompanied by bond or
certified check on a solvent bank, in such amount as the director
considers sufficient, that if the bid is accepted a contract will
be entered into and the performance of the proposal secured.
(d) The director may reject any and all bids.
(e) A bond with good and sufficient surety, approved by the
director, shall be required of every contractor awarded a contract
except as provided in division (B)(6)(b) of this section, in an
amount equal to at least fifty per cent of the contract price,
conditioned upon faithful performance of the contract.
(7) Employ financial consultants, appraisers, consulting
engineers, superintendents, managers, construction and accounting
experts, attorneys, and other employees and agents as are
necessary in the director's judgment and fix their compensation;
(8) Assist qualified persons in the coordination and
formation of a small business development company, having a
statewide area of operation, conditional upon the company's
agreeing to seek to obtain certification from the federal small
business administration as a certified statewide development
company and participation in the guaranteed loan program
administered by the small business administration pursuant to the
Act of July 2, 1980, 94 Stat. 837, 15 U.S.C.A. 697. During the
initial period of formation of the statewide small business
development company, the director shall provide technical and
financial expertise, legal and managerial assistance, and other
services as are necessary and proper to enable the company to
obtain and maintain federal certification and participation in the
federal guaranteed loan program. The director may charge a fee, in
such amount and on such terms and conditions as the director
determines necessary and proper, for assistance and services
provided pursuant to division (B)(8) of this section.
Persons chosen by the director to receive assistance in the
formation of a statewide small business development company
pursuant to division (B)(8) of this section shall make a special
effort to use their participation in the federal guaranteed loan
program to assist small businesses which are minority business
enterprises as defined in division (E) of section 122.71 of the
Revised Code. The director, with the assistance of the minority
business development division of the department of development,
shall provide technical and financial expertise, legal and
managerial assistance, and other services in such a manner to
enable the development company to provide assistance to small
businesses which are minority business enterprises, and shall make
available to the development company information pertaining to
assistance available to minority business enterprises under
programs established pursuant to sections 122.71 to 122.83, 122.87
to 122.89, 122.92 to 122.94, 123.151, and 125.081 of the Revised
Code.
(9) Receive and accept grants, gifts, and contributions of
money, property, labor, and other things of value to be held,
used, and applied only for the purpose for which such grants,
gifts, and contributions are made, from individuals, private and
public corporations, from the United States or any agency of the
United States, from the state or any agency of the state, and from
any political subdivision of the state, and may agree to repay any
contribution of money or to return any property contributed or the
value of the property at such times, in such amounts, and on such
terms and conditions, excluding the payment of interest, as the
director determines at the time such contribution is made, and may
evidence such obligations by notes, bonds, or other written
instruments;
(10) Establish with the treasurer of state the funds provided
in sections 122.54, 122.55, 122.56, and 122.57 of the Revised
Code, in addition to such funds as the director determines are
necessary or proper;
(11) Do all acts and things necessary or proper to carry out
the powers expressly granted and the duties imposed in sections
122.39 and 122.41 to 122.62 and Chapter 163. of the Revised Code.
(C) All expenses and obligations incurred by the director in
carrying out the director's powers and in exercising the
director's duties under sections 122.39 and 122.41 to 122.62 of
the Revised Code, shall be payable solely from the proceeds of
revenue bonds issued pursuant to those sections, from revenues or
other receipts or income of the director, from grants, gifts, and
contributions, or funds established in accordance with those
sections. Those sections do not authorize the director to incur
indebtedness or to impose liability on the state or any political
subdivision of the state.
(D) Financial statements and financial data submitted to the
director by any corporation, partnership, or person in connection
with a loan application, or any information taken from such
statements or data for any purpose, shall not be open to public
inspection.
Sec. 122.43. The director of development services, with
controlling board approval, may lend funds which are obtained from
the sale of revenue bonds issued by the treasurer of state
pursuant to sections 122.39 and 122.41 to 122.62 of the Revised
Code, from revenues or other receipts or income of the director,
or funds established in accordance with sections 122.39 and 122.41
to 122.62 of the Revised Code, and from grants, gifts, and
contributions subject to any provisions of resolutions authorizing
the revenue bonds or of trust agreements securing such bonds, to
community improvement corporations and Ohio development
corporations and other corporations, partnerships, and persons for
the purpose of procuring or improving real or personal property,
or both, for the establishment, location, or expansion of
industrial, distribution, commercial, or research facilities in
the state, and to community improvement corporations and Ohio
development corporations for the purpose of loaning funds to other
corporations, partnerships, and persons for the purpose of
procuring or improving real or personal property, or both, for the
establishment, location, or expansion of industrial, distribution,
commercial, or research facilities in the state, if the director
finds that:
(A) The project is economically sound and will benefit the
people of the state by increasing opportunities for employment and
strengthening the economy of the state;
(B) The proposed borrower, if other than a community
improvement corporation or an Ohio development corporation, is
unable to finance the proposed project through ordinary financial
channels upon reasonable terms and at comparable interest rates,
or the borrower, if a community improvement corporation or an Ohio
development corporation, should not, in the opinion of the
director, be required to finance the proposed project without a
loan from the director;
(C) The value of the project is, or upon completion thereof
will be, at least equal to the total amount of the money expended
in such procurement or improvement of which amount one or more
financial institutions have loaned or invested not less than forty
per cent;
(D) The amount to be loaned by the director will not exceed
fifty per cent of the total amount expended in the procurement or
improvement of the project;
(E) The amount to be loaned by the director will be
adequately secured by a first or second mortgage upon the project,
and by mortgages, leases, liens, assignments, or pledges on or of
such other property or contracts as the director shall require and
that such mortgage will not be subordinate to any other liens or
mortgages except the liens securing loans or investments made by
financial institutions referred to in division (C) of this
section, and the liens securing loans previously made by any
financial institution in connection with the procurement or
expansion of all or part of a project.
In no event may the direector DIRECTOR director lend funds
under the authority of this section for the purpose of procuring
or improving motor vehicles, power driven vehicles, office
equipment, raw materials, small tools, supplies, inventories, or
accounts receivable.
Sec. 122.44. Fees, charges, rates of interest, times of
payment of interest and principal, and other terms, conditions,
and provisions of the loans made by the director of development
services pursuant to sections 122.39 and 122.41 to 122.62 of the
Revised Code shall be such as the director determines to be
appropriate and in furtherance of the purpose for which the loans
are made, but the mortgage lien securing any money loaned by the
director may be subordinate to the mortgage lien securing any
money loaned or invested by a financial institution, but shall be
superior to that securing any money loaned or expended by any
other corporation or person. The funds used in making such loans
shall be disbursed upon order of the director.
Sec. 122.48. Each issue of revenue bonds issued by the
treasurer of state pursuant to sections 122.39 and 122.41 to
122.62 of the Revised Code, shall be dated, shall bear interest at
a rate or rates or at a variable rate, as provided in or
authorized by the proceedings authorizing or providing for the
terms and conditions of the revenue bonds, shall mature at such
time or times, not to exceed forty years from date, as determined
by the director of development services and may be made redeemable
before maturity at the option of the director at such price or
prices and under such terms and conditions as are fixed by the
director prior to the issuance of the bonds. The director shall
determine the form of the bonds, including any interest coupons to
be attached thereto, and the denomination or denominations of the
bonds and the place or places of payment of principal and
interest, which may be at any bank or trust company within or
without the state.
The bonds shall be executed by the signature or facsimile
signature of the treasurer of state, the official seal or a
facsimile thereof of the state shall be affixed thereto and
attested by the treasurer of state or designated treasurer of
state, and any coupons attached thereto shall bear the facsimile
signature of the treasurer of state. In case the person whose
signature, or a facsimile of whose signature, appears on any bonds
or coupons ceases to be such officer before delivery of bonds or
in case such person was not at the date of such bonds or coupons
such officer but at the actual date of execution of such bonds or
coupons was the proper officer, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes the same as
if he the person had remained in office until such delivery.
All revenue bonds issued under sections 122.39 and 122.41 to
122.62 of the Revised Code, shall be negotiable instruments. The
bonds may be issued in coupon or in registered form or both, as
the treasurer determines. Provision may be made for the
registration of any coupon bonds as to the principal alone and
also as to both principal and interest, and for the reconversion
into coupon bonds of any bonds registered as to both principal and
interest. The treasurer of state may sell such bonds in the manner
and for the price he the treasurer of state determines to be for
the best interest of the state.
Prior to the preparation of definitive bonds, the treasurer
of state may, under like restrictions, issue interim receipts or
temporary bonds, with or without coupons, exchangeable for
definitive bonds when such bonds have been executed and are
available for delivery. The treasurer of state may also provide
for the replacement of any bonds which become mutilated or are
destroyed, stolen, or lost. Bonds may be issued under sections
122.39 to 122.62 of the Revised Code, without obtaining the
consent of any department, division, commission, board, bureau, or
agency of the state, and without any other proceeding or the
happening of any other conditions or things than those
proceedings, conditions, or things which are specifically required
by such sections.
Sec. 122.49. The proceeds of each issue of revenue bonds
issued pursuant to sections 122.39 and 122.41 to 122.62 of the
Revised Code shall be used for the making of loans authorized in
sections 122.43 and 122.45 of the Revised Code, for the purchase
and improvement of property authorized in section 122.46 of the
Revised Code, for insuring mortgage payments authorized in section
122.451 of the Revised Code, and for the crediting into and among
the funds established in accordance with sections 122.35, 122.54,
122.55, 122.56, 122.561, and 122.57 of the Revised Code, but
subject to such conditions, limitations, and covenants with the
purchasers and holders of the bonds as shall be provided for in
the bond authorization proceedings and in the trust agreement
securing the same.
Provision shall be made by the director of development
services for the payment of the expenses of the director in
operating the assistance programs authorized under this chapter in
such manner and to such extent as shall be determined by the
director.
Sec. 122.50. Revenue bonds issued under sections 122.39 and
122.41 to 122.62, inclusive, of the Revised Code, do not
constitute a debt, or a pledge of the faith and credit, of the
state or of any political subdivision thereof, but such bonds
shall be payable solely from the funds pledged for their payment
as authorized by such sections, or by funds derived from the
issuance of refunding bonds as authorized in section 122.52 of the
Revised Code, which refunding bonds shall be payable solely from
funds pledged for their payment as authorized by such section. All
such revenue bonds shall contain on the face thereof a statement
to the effect that the bonds, as to both principal and interest,
are not an obligation of the state or of any political subdivision
thereof, but are payable solely from revenues pledged for their
payment.
Sec. 122.51. All revenue bonds issued under sections 122.39
and 122.41 to 122.62, inclusive, of the Revised Code, are lawful
investments of banks, building and loan and savings and loan
associations, deposit guarantee associations, trust companies,
trustees, fiduciaries, trustees or other officers having charge of
sinking or bond retirement funds of municipal corporations and
other subdivisions of this state, and of domestic insurance
companies notwithstanding sections 3907.14 and 3925.08 of the
Revised Code, and are acceptable as security for the deposit of
public moneys.
Sec. 122.52. The director of development services may
provide for the issuance of revenue refunding bonds of the state
by the treasurer of state, payable solely from the sinking funds
established in accordance with section 122.51 of the Revised Code
at the times and in the order and manner provided by the director
and in any trust agreement securing such bonds and shall also be
secured by moneys in the other funds established pursuant to
sections 122.39 and 122.41 to 122.62 of the Revised Code to the
extent and on the terms specified by the director, for the purpose
of refunding any revenue bonds then outstanding which have been
issued under sections 122.39 and 122.41 to 122.62 of the Revised
Code, including the payment of any redemption premium thereon and
any interest accrued or to accrue to the date of redemption of
such bonds. The issuance of such bonds, the maturities and other
details thereof, the rights of the holders thereof, and the
rights, duties, and obligations of the director and treasurer of
state in respect to such bonds shall be governed by such sections
insofar as they are applicable.
Sec. 122.53. In the discretion of the treasurer of state,
any bonds issued under sections 122.39 and 122.41 to 122.62 of the
Revised Code, may be secured by a trust agreement between the
treasurer of state and a corporate trustee, which trustee may be
any trust company or bank having the powers of a trust company
within or without the state.
Any such trust agreement may pledge or assign payments of
principal of and interest on loans, charges, fees, and other
revenue to be received by the director of development services,
all rentals received under leases made by the director, and all
proceeds of the sale or other disposition of property held by the
director, and may provide for the holding in trust by the trustee
to the extent provided for in the proceedings authorizing such
bonds, of all such moneys and moneys otherwise payable into the
mortgage guarantee fund created by section 122.56 of the Revised
Code, and all moneys otherwise payable into the mortgage insurance
fund created by section 122.561 of the Revised Code, and of moneys
payable into the sinking fund or funds referred to in section
122.57 of the Revised Code, but shall not convey or mortgage any
of the real or personal property held by the director or any part
thereof. Any such trust agreement, or any proceedings providing
for the issuance of such bonds, may contain such provisions for
protecting and enforcing the rights and remedies of the
bondholders as are reasonable and proper and not in violation of
law, including covenants setting forth the duties of the director
in relation to the acquisition of property, and the construction,
improvement, maintenance, repair, operation, and insurance of
facilities, the making of loans and leases and the terms and
provisions thereof, and the custody, safeguarding, investment, and
application of all moneys, and provisions for the employment of
consulting engineers or other consultants in connection with the
making of loans and leases and the construction or operation of
any facility. Any bank or trust company incorporated under the
laws of this state which may act as trustee or as depository of
the proceeds of bonds or of revenue may furnish such indemnifying
bonds or may pledge such securities as are required by the
treasurer of state. Any such trust agreement may set forth the
rights and remedies of the bondholders and of the trustee, and may
restrict the individual right of action by bondholders as is
customary in trust agreements or trust indentures securing bonds
or debentures of corporations. Such trust agreement may contain
such other provisions as the treasurer of state deems reasonable
and proper for the security of the bondholders. All expenses
incurred by the treasurer of state in carrying out the provisions
of any such trust agreement shall be treated as a part of the cost
of the operation of the assistance programs authorized pursuant to
Chapter 122. of the Revised Code. Any such trust agreement may
provide the method whereby general administrative overhead expense
of the director with respect to those assistance programs shall be
allocated among the funds established pursuant to Chapter 122. of
the Revised Code with respect to the operating expenses of the
director payable out of the income of the assistance programs.
Sec. 122.561. The mortgage insurance fund of the director of
development services is hereby created to consist of all money
allocated by the director from the proceeds of the sale of any
issue of revenue bonds, to the extent and subject to the
conditions provided in the proceedings authorizing such bonds or
in the trust agreements securing such bonds, for the purpose of
insuring mortgage payments pursuant to section 122.451 of the
Revised Code, all grants and contributions made to the director
for such purpose, all moneys deposited or credited to the mortgage
insurance fund pursuant to section 169.05 of the Revised Code, all
other moneys and property designated by the director and by law
for such purpose, all mortgage insurance premiums charged and
collected as provided in this section, and all receipts and
proceeds from the sale, disposal, lease, or rental of real or
personal property which the director may hold as a result of a
default in an insured mortgage. The director shall fix mortgage
insurance premiums for the insurance of mortgage payments pursuant
to section 122.451 of the Revised Code, to be computed as a
percentage of the principal obligation of the mortgage outstanding
at the beginning of each mortgage year. Such insurance premiums
shall not be more than three per cent per annum of the outstanding
principal obligation, and shall be calculated on the basis of all
pertinent available data. Such premiums shall be payable by the
mortgagors or the mortgagees in such manner as is prescribed by
the director. The amount of premium need not be uniform among the
various mortgages insured. The director may provide for the
custody, investment, and use of the unclaimed funds trust fund
created by section 169.05 of the Revised Code and all mortgage
insurance premiums, including the payment therefrom of the
expenses and costs of the director in insuring mortgage payments
pursuant to section 122.451 of the Revised Code. Any financial
statements or financial data submitted to the director, the
development financing advisory council, or the controlling board
in connection with any application for the insurance of mortgage
payments, or any information taken from such statements or data,
is not open to public inspection.
Sec. 122.57. All payments of principal of and interest on
the loans made by the director of development services, all
rentals received under leases made by him the director, and all
proceeds of the sale or other disposition of property held by him
the director shall be placed in separate sinking funds to the
extent provided in the proceedings authorizing revenue bonds which
are hereby pledged to and charged with the payment of interest on,
principal of and redemption premium on, the revenue bonds issued
pursuant to sections 122.39 and 122.41 to 122.62 of the Revised
Code to the extent provided in the proceedings authorizing and the
trust agreements securing such bonds. The moneys therein in excess
of the amounts required by the bond proceedings and trust
agreements and all payments not so required to be paid into such
sinking funds shall be retained or placed in such fund or in the
other funds provided for by sections 122.35, 122.54, 122.42,
122.55, 122.56, 122.561, and 122.57 of the Revised Code as the
director shall determine, and shall be available for the uses for
which such funds are established.
Sec. 122.60. As used in sections 122.60 to 122.605 of the
Revised Code:
(A) "Capital access loan" means a loan made by a
participating financial institution to an eligible business that
may be secured by a deposit of money from the fund into the
participating financial institution's program reserve account.
(B) "Department of development" means the department of
development services agency.
(C) "Eligible business" means a for-profit business entity,
or a nonprofit entity, that had total annual sales in its most
recently completed fiscal year of less than ten million dollars
and that has a principal place of for-profit business or nonprofit
entity activity within the state, the operation of which, alone or
in conjunction with other facilities, will create new jobs or
preserve existing jobs and employment opportunities and will
improve the economic welfare of the people of the state. As used
in this division, "new jobs" does not include existing jobs
transferred from another facility within the state, and "existing
jobs" means only existing jobs at facilities within the same
municipal corporation or township in which the project, activity,
or enterprise that is the subject of a capital access loan is
located.
(D) "Financial institution" means any bank, trust company,
savings bank, or savings and loan association that is chartered by
and has a significant presence in the state, or any national bank,
federal savings and loan association, or federal savings bank that
has a significant presence in the state.
(E) "Fund" means the capital access loan program fund.
(F) "Minority business supplier development council" has the
same meaning as in section 122.71 of the Revised Code.
(G) "Participating financial institution" means a financial
institution that has a valid, current participation agreement with
the
department development services agency.
(G)(H) "Participation agreement" means the agreement between
a financial institution and the department agency under which a
financial institution may participate in the program.
(H)(I) "Passive real estate ownership" means the ownership of
real estate for the sole purpose of deriving income from it by
speculation, trade, or rental.
(I)(J) "Program" means the capital access loan program
created under section 122.602 of the Revised Code.
(J)(K) "Program reserve account" means a dedicated account at
each participating financial institution that is the property of
the state and may be used by the participating financial
institution only for the purpose of recovering a claim under
section 122.604 of the Revised Code arising from a default on a
loan made by the participating financial institution under the
program.
Sec. 122.601. There is hereby created in the state treasury
the capital access loan program fund. The fund shall consist of
money deposited into it from the minority business enterprise loan
fund pursuant to section 122.80 of the Revised Code and the
facilities establishment fund pursuant to section 166.03 of the
Revised Code and all money deposited into it pursuant to section
122.602 of the Revised Code. The total amount of money deposited
into the fund from the minority business enterprise loan fund or
the facilities establishment fund shall not exceed three million
dollars during any particular fiscal year of the department
development services agency.
The department agency shall disburse money from the fund only
to pay the operating costs of the program, including the
administrative costs incurred by the department agency in
connection with the program, and only in keeping with the purposes
specified in sections 122.60 to 122.605 of the Revised Code.
Sec. 122.602. (A) There is hereby created in the department
of development the capital access loan program to assist
participating financial institutions in making program loans to
eligible businesses that face barriers in accessing working
capital and obtaining fixed asset financing. In administering the
program, the director of development may do any of the following:
(1) Receive and accept grants, gifts, and contributions of
money, property, labor, and other things of value to be held,
used, and applied only for the purpose for which the grants,
gifts, and contributions are made, from individuals, private and
public corporations, the United States or any agency of the United
States, the state or any agency of the state, or any political
subdivision of the state;
(2) Agree to repay any contribution of money or return any
property contributed or the value of that property at the times,
in the amounts, and on the terms and conditions, excluding the
payment of interest, that the director consents to at the time a
contribution is made; and evidence obligations by notes, bonds, or
other written instruments;
(3) Adopt rules under Chapter 119. of the Revised Code to
carry out the purposes of the program specified in sections 122.60
to 122.605 of the Revised Code;
(4) Engage in all other acts, and enter into contracts and
execute all instruments, necessary or appropriate to carry out the
purposes specified in sections 122.60 to 122.605 of the Revised
Code.
(B) The director shall determine the eligibility of a
financial institution to participate in the program and may set a
limit on the number of financial institutions that may participate
in the program.
(C) To be considered eligible by the director to participate
in the program, a financial institution shall enter into a
participation agreement with the department that sets out the
terms and conditions under which the department will deposit
moneys from the fund into the financial institution's program
reserve account, specifies the criteria for loan qualification
under the program, and contains any additional terms the director
considers necessary.
(D) After receiving the certification required under division
(C) of section 122.603 of the Revised Code, the director may
disburse moneys from the fund to a participating financial
institution for deposit in its program reserve account if the
director determines that the capital access loan involved meets
all of the following criteria:
(1) It will be made to an eligible business.
(2) It will be used by the eligible business for a project,
activity, or enterprise that fosters economic development.
(3) It will not be made in order to enroll in the program
prior debt that is not covered under the program and that is owed
or was previously owed by an eligible business to the financial
institution.
(4) It will not be utilized for a project or development
related to the on-site construction or purchase of residential
housing.
(5) It will not be used to finance passive real estate
ownership.
(6) It conforms to the requirements of divisions (E), (F),
(G), (H), and (I) of this section, and to the rules adopted by the
director under division (A)(3) of this section.
(E) The director shall not approve a deposit amount from the
fund for a capital access loan to an eligible business that
exceeds two hundred fifty thousand dollars for working capital or
five hundred thousand dollars for the purchase of fixed assets. An
eligible business may apply for the maximum deposit amount of for
both working capital and the purchase of fixed assets in the same
capital access loan enrollment.
(F) A financial institution may apply to the director for the
approval of a capital access loan to any business that is owned or
operated by a person that has previously defaulted under any state
financial assistance program.
(G) Eligible businesses that apply for a capital access loan
shall comply with section 9.66 of the Revised Code.
(H) A financial institution may apply to the director for the
approval of a capital access loan that refinances a nonprogram
loan made by another financial institution.
(I) The director shall not approve a capital access loan that
refinances a nonprogram loan made by the same financial
institution, unless the amount of the refinanced loan exceeds the
existing debt, in which case only the amount exceeding the
existing debt is eligible for a loan under the program.
Sec. 122.603. (A)(1) Upon approval by the director of
development services and after entering into a participation
agreement with the department of development services agency, a
participating financial institution making a capital access loan
shall establish a program reserve account. The account shall be an
interest-bearing account and shall contain only moneys deposited
into it under the program and the interest payable on the moneys
in the account.
(2) All interest payable on the moneys in the program reserve
account shall be added to the moneys and held as an additional
loss reserve. The director may require that a portion or all of
the accrued interest so held in the account be released to the
department agency. If the director causes a release of accrued
interest, the director shall deposit the released amount into the
capital access loan program fund created in section 122.601 of the
Revised Code. The director shall not require the release of that
accrued interest more than twice in a fiscal year.
(B) When a participating financial institution makes a
capital access loan, it shall require the eligible business to pay
to the participating financial institution a fee in an amount that
is not less than one and one-half per cent, and not more than
three per cent, of the principal amount of the loan. The
participating financial institution shall deposit the fee into its
program reserve account, and it also shall deposit into the
account an amount of its own funds equal to the amount of the fee.
The participating financial institution may recover from the
eligible business all or part of the amount that the participating
financial institution is required to deposit into the account
under this division in any manner agreed to by the participating
financial institution and the eligible business.
(C) For each capital access loan made by a participating
financial institution, the participating financial institution
shall certify to the director, within a period specified by the
director, that the participating financial institution has made
the loan. The certification shall include the amount of the loan,
the amount of the fee received from the eligible business, the
amount of its own funds that the participating financial
institution deposited into its program reserve account to reflect
that fee, and any other information specified by the director. The
certification also shall indicate if the eligible business
receiving the capital access loan is a minority business
enterprise as defined in section 122.71 of the Revised Code or
certified by the minority business supplier development council.
(D)(1)(a) Upon receipt of each of the first three
certifications from a participating financial institution made
under division (C) of this section and subject to section 122.602
of the Revised Code, the director shall disburse to the
participating financial institution from the capital access loan
program fund an amount equal not to exceed fifty per cent of the
principal amount of the particular capital access loan for deposit
into the participating financial institution's program reserve
account. Thereafter, upon receipt of a certification from that
participating financial institution made under division (C) of
this section and subject to section 122.602 of the Revised Code,
the director shall disburse to the participating financial
institution from the capital access loan program fund an amount
equal to ten per cent of the principal amount of the particular
capital access loan for deposit into the participating financial
institution's program reserve account.
(b) Notwithstanding division (D)(1)(a) of this section, and
subject to section 122.602 of the Revised Code, upon receipt of
any certification from a participating financial institution made
under division (C) of this section with respect to a capital
access loan made to an eligible business that is a minority
business enterprise, the director shall disburse to the
participating financial institution from the capital access loan
program fund an amount equal not to exceed eighty per cent of the
principal amount of the particular capital access loan for deposit
into the participating financial institution's program reserve
account.
(2) The disbursement of moneys from the fund to a
participating financial institution does not require approval from
the controlling board.
(E) If the amount in a program reserve account exceeds an
amount equal to thirty-three per cent of a participating financial
institution's outstanding capital access loans, the
department
agency may cause the withdrawal of the excess amount and the
deposit of the withdrawn amount into the capital access loan
program fund.
(F)(1) The department agency may cause the withdrawal of the
total amount in a participating financial institution's program
reserve account if any of the following applies:
(a) The financial institution is no longer eligible to
participate in the program.
(b) The participation agreement expires without renewal by
the
department agency or the financial institution.
(c) The financial institution has no outstanding capital
access loans.
(d) The financial institution has not made a capital access
loan within the preceding twenty-four months.
(2) If the department agency causes a withdrawal under
division (F)(1) of this section, the department agency shall
deposit the withdrawn amount into the capital access loan program
fund.
Sec. 122.61. The exercise of the powers granted by sections
122.39 and 122.41 to 122.62 of the Revised Code, will be in all
respects for the benefit of the people of the state, for the
increase of their commerce and prosperity, and for the improvement
of conditions of employment, and will constitute the performance
of essential governmental functions; therefore the director of
development services shall not be required to pay any taxes upon
any of property or assets held by him the director, or upon any
property acquired or used by him the director under sections
122.39 and 122.41 to 122.62 of the Revised Code, or upon the
income therefrom, provided, such exemption shall not apply to any
property held by the director while it is in the possession of a
private person, partnership, or corporation and used for private
purposes for profit. The bonds, notes, or other obligations issued
under such sections, their transfer, and the income therefrom,
including any profit made on the sale thereof, shall at all times
be free from taxation within the state.
Sec. 122.62. All moneys received under sections 122.39 and
122.41 to 122.62 of the Revised Code as proceeds from the sale of
bonds are trust funds. All moneys received under those sections
shall be held and applied solely as provided in such sections and
section 166.03 of the Revised Code. All such moneys, except as
otherwise provided in any proceedings authorizing revenue bonds or
in any trust agreement securing such bonds or except when
deposited with the treasurer of state, or except as they may be
invested pursuant to section 122.58 of the Revised Code, shall be
kept in depositories as selected by the director of development
services in the manner provided in sections 135.01 to 135.21 of
the Revised Code, insofar as such sections are applicable, and the
deposits shall be secured as provided in sections 135.01 to 135.21
of the Revised Code. The proceedings authorizing the issuance of
bonds of any issue or the trust agreement securing such bonds
shall provide that any official to whom, or any bank or trust
company to which, such moneys are paid, shall act as trustee of
such moneys and hold and apply them for the purposes of sections
122.39 and 122.41 to 122.62 of the Revised Code, subject to such
rules as such sections and such bond issuance proceedings or trust
agreement provide.
Sec. 122.64. (A) There is hereby established in the
department of development services agency a business services
division of economic development. The division shall be supervised
by a deputy director appointed by the director of development
services.
The division is responsible for the administration of the
state economic development financing programs established pursuant
to sections 122.17 and 122.18, sections 122.39 and 122.41 to
122.62, and Chapter 166. of the Revised Code and for coordinating
the activities of the development financing advisory council so as
to ensure the efficient administration of the programs.
(B) The director of development services shall:
(1) Appoint an individual to serve as director of the
development financing advisory council;
(2) Receive applications for assistance pursuant to sections
122.39 and 122.41 to 122.62 and Chapter 166. of the Revised Code.
The director shall process the applications and, except as
provided in division (C)(2) of section 166.05 of the Revised Code,
forward them to the development financing advisory council. As
appropriate, the director shall receive the recommendations of the
council as to applications for assistance.
(3)(2) With the approval of the director of administrative
services, establish salary schedules for employees of the various
positions of employment with the division and assign the various
positions to those salary schedules;
(4) Furnish and pay for, out of funds appropriated to the
department of development for that purpose, office space and
associated utilities service, for the development financing
advisory council;
(5)(3) Employ and fix the compensation of financial
consultants, appraisers, consulting engineers, superintendents,
managers, construction and accounting experts, attorneys, and
other agents for the assistance programs authorized pursuant to
sections 122.17 and 122.18, sections 122.39 and 122.41 to 122.62,
and Chapter 166. of the Revised Code as are necessary;
(6)(4) Supervise the administrative operations of the
division;
(7)(5) On or before the first day of October in each year,
make an annual report of the activities and operations under
assistance programs authorized pursuant to sections 122.39 and
122.41 to 122.62 and Chapter 166. of the Revised Code for the
preceding fiscal year to the governor and the general assembly.
Each such report shall set forth a complete operating and
financial statement covering such activities and operations during
the year in accordance with generally accepted accounting
principles and shall be audited by a certified public accountant.
The director of development services shall transmit a copy of the
audited financial report to the office of budget and management.
Sec. 122.76. (A) The director of development services, with
controlling board approval, may lend funds to minority business
enterprises and to community improvement corporations, Ohio
development corporations, minority contractors business assistance
organizations, and minority business supplier development councils
for the purpose of loaning funds to minority business enterprises
and for the purpose of procuring or improving real or personal
property, or both, for the establishment, location, or expansion
of industrial, distribution, commercial, or research facilities in
the state, and to community development corporations that
predominantly benefit minority business enterprises or are located
in a census tract that has a population that is sixty per cent or
more minority if the director determines, in the director's sole
discretion, that all of the following apply:
(1) The project is economically sound and will benefit the
people of the state by increasing opportunities for employment, by
strengthening the economy of the state, or expanding minority
business enterprises.
(2) The proposed minority business enterprise borrower is
unable to finance the proposed project through ordinary financial
channels at comparable terms.
(3) The value of the project is or, upon completion, will be
at least equal to the total amount of the money expended in the
procurement or improvement of the project.
(4) The amount to be loaned by the director will not exceed
sixty seventy-five per cent of the total amount expended in the
procurement or improvement of the project.
(5) The amount to be loaned by the director will be
adequately secured by a first or second mortgage upon the project
or by mortgages, leases, liens, assignments, or pledges on or of
other property or contracts as the director requires, and such
mortgage will not be subordinate to any other liens or mortgages
except the liens securing loans or investments made by financial
institutions referred to in division (A)(3) of this section, and
the liens securing loans previously made by any financial
institution in connection with the procurement or expansion of all
or part of a project.
(B) Any proposed minority business enterprise borrower
submitting an application for assistance under this section shall
not have defaulted on a previous loan from the director, and no
full or limited partner, major shareholder, or holder of an equity
interest of the proposed minority business enterprise borrower
shall have defaulted on a loan from the director.
(C) The proposed minority business enterprise borrower shall
demonstrate to the satisfaction of the director that it is able to
successfully compete in the private sector if it obtains the
necessary financial, technical, or managerial support and that
support is available through the director, the minority business
development office of the department of development, or other
identified and acceptable sources. In determining whether a
minority business enterprise borrower will be able to successfully
compete, the director may give consideration to such factors as
the successful completion of or participation in courses of study,
recognized by the board of regents as providing financial,
technical, or managerial skills related to the operation of the
business, by the economically disadvantaged individual, owner, or
partner, and the prior success of the individual, owner, or
partner in personal, career, or business activities, as well as to
other factors identified by the director.
(D) The director shall not lend funds for the purpose of
procuring or improving motor vehicles or accounts receivable.
Sec. 122.80. There is hereby created in the state treasury
the minority business enterprise loan fund. The fund shall consist
of money deposited into the fund from the facilities establishment
fund pursuant to section 166.03 of the Revised Code and all money
deposited into the fund pursuant to section 122.81 of the Revised
Code. The director of development shall use the fund to pay
operating costs of the minority development financing advisory
board, make loans to minority business enterprises as authorized
in division (A) of section 122.76 of the Revised Code and, loan
guarantees to small businesses as authorized in division (A) of
section 122.77 of the Revised Code, and for transfer to the
capital access loan program fund established in section 122.601 of
the Revised Code to be used solely for minority business
enterprises or minority businesses certified by the minority
business supplier development council for deposits specified by
division (D)(1)(b) of section 122.603 of the Revised Code.
Sec. 122.86. (A) As used in this section and section 5747.81
of the Revised Code:
(1) "Small business enterprise" means a corporation,
pass-through entity, or other person satisfying all of the
following:
(a) At the time of a qualifying investment, the enterprise
meets all of the following requirements:
(i) Has no outstanding tax or other liabilities owed to the
state;
(ii) Is in good standing with the secretary of state, if the
enterprise is required to be registered with the secretary;
(iii) Is current with any court-ordered payments;
(iv) Is not engaged in any illegal activity.
(b) At the time of a qualifying investment, the enterprise's
assets according to generally accepted accounting principles do
not exceed fifty million dollars, or its annual sales do not
exceed ten million dollars;. When making this determination, the
assets and annual sales of all of the enterprise's related or
affiliated entities shall be included in the calculation.
(b)(c) The enterprise employs at least fifty full-time
equivalent employees in this state for whom the enterprise is
required to withhold income tax under section 5747.06 of the
Revised Code, or more than one-half the enterprise's total number
of full-time equivalent employees employed anywhere in the United
States are employed in this state and are subject to that
withholding requirement.
(c)(d) The enterprise, within six months after an eligible
investor's qualifying investment is made, invests in or incurs
cost for one or more of the following in an amount at least equal
to the amount of the qualifying investment:
(i) Tangible personal property, other than motor vehicles
operated on public roads and highways, used in business and
physically located in this state from the time of its acquisition
by the enterprise until the end of the investor's holding period;
(ii) Motor vehicles operated on public roads and highways if,
from the time of acquisition by the enterprise until the end of
the investor's holding period, the motor vehicles are purchased in
this state, registered in this state under Chapter 4503. of the
Revised Code, are used primarily for business purposes, and are
necessary for the operation of the enterprise's business;
(iii) Real property located in this state that is used in
business from the time of its acquisition by the enterprise until
the end of the holding period;
(iv) Intangible personal property, including patents,
copyrights, trademarks, service marks, or licenses used in
business primarily in this state from the time of its acquisition
by the enterprise until the end of the holding period;
(v) Compensation for new employees of the enterprise for whom
the enterprise is required to withhold income tax under section
5747.06 of the Revised Code, not including increased compensation
for owners, officers, or managers of the enterprise. For this
purpose compensation for new employees includes compensation for
newly hired or retained employees.
(2) "Qualifying investment" means an investment of money made
on or after July 1, 2011, to acquire capital stock or other equity
interest in a small business enterprise. "Qualifying investment"
does not include any either of the following:
(a) Any investment of money an eligible investor derives,
directly or indirectly, from a grant or loan from the federal
government or the state or a political subdivision, including the
third frontier program under Chapter 184. of the Revised Code;
(b) Any investment of money which is the basis of a tax
credit granted under any other section of the Revised Code.
(3) "Eligible investor" means an individual, estate, or trust
subject to the tax imposed by section 5747.02 of the Revised Code,
or a pass-through entity in which such an individual, estate, or
trust holds a direct or indirect ownership or other equity
interest. To qualify as an eligible investor, the individual,
estate, trust, or pass-through entity shall not owe any
outstanding tax or other liability to the state at the time of a
qualifying investment.
(4) "Holding period" means:
(a) For qualifying investments made on or after July 1, 2011,
but before July 1, 2013, the two-year period beginning on the day
the investment was made;
(b) For qualifying investments made on or after July 1, 2013,
the five-year period beginning on the day the investment was made.
(5) "Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.
(B) Any eligible investor that makes a qualifying investment
in a small business enterprise on or after July 1, 2011, may apply
to the director of development services to obtain a small business
investment certificate from the director. Alternatively, a small
business enterprise may apply on behalf of eligible investors to
obtain the certificates for those investors. The director, in
consultation with the tax commissioner, shall prescribe the form
or manner in which an applicant shall apply for the certificate,
devise the form of the certificate, and prescribe any records or
other information an applicant shall furnish with the application
to evidence the qualifying investment. The applicant shall state
the amount of the intended investment. The applicant shall pay an
application fee equal to the greater of one-tenth of one per cent
of the amount of the intended investment or one hundred dollars.
A small business investment certificate entitles the
certificate holder to receive a tax credit under section 5747.81
of the Revised Code if the certificate holder qualifies for the
credit as otherwise provided in this section. If the certificate
holder is a pass-through entity, the certificate entitles the
entity's equity owners to receive their distributive or
proportionate shares of the credit. In any fiscal biennium, an
eligible investor may not apply for small business investment
certificates representing intended investment amounts in excess of
ten million dollars. Such certificates are not transferable.
The director of development shall issue services may reserve
small business investment certificates to qualifying applicants in
the order in which the director receives applications, but may
issue the certificates as the applications are completed. An
application is completed when the director has validated that an
eligible investor has made a qualified investment and the small
business enterprise has made the appropriate reinvestment of the
qualified investment pursuant to the requirements of division
(A)(1)(d) of this section. To qualify for a certificate, an
eligible investor must satisfy both of the following, subject to
the limitation on the amount of qualifying investments for which
certificates may be issued under division (C) of this section:
(1) The eligible investor makes a qualifying investment on or
after July 1, 2011.
(2) The eligible investor pledges not to sell or otherwise
dispose of the qualifying investment before the conclusion of the
applicable holding period.
(C)(1) The amount of any eligible investor's qualifying
investments for which small business investment certificates may
be issued for a fiscal biennium shall not exceed ten million
dollars.
(2) The director of development services shall not issue a
small business investment certificate to an eligible investor
representing an amount of qualifying investment in excess of the
amount of the intended investment indicated on the investor's
application for the certificate.
(3) The director of development services shall not issue
small business investment certificates in a total amount that
would cause the tax credits claimed in any fiscal biennium to
exceed one hundred million dollars.
(4) The director of development services may issue a small
business investment certificate only if both of the following
apply at the time of issuance:
(a) The small business enterprise meets all the requirements
listed in divisions (A)(1)(a)(i) to (iv) of this section;
(b) The eligible investor does not owe any outstanding tax or
other liability to the state.
(D) Before the end of the applicable holding period of a
qualifying investment, each enterprise in which a qualifying
investment was made for which a small business investment
certificate has been issued, upon the request of the director of
development services, shall provide to the director records or
other evidence satisfactory to the director that the enterprise is
a small business enterprise for the purposes of this section. Each
enterprise shall also provide annually to the director records or
evidence regarding the number of jobs created or retained in the
state. No credit may be claimed under this section and section
5747.81 of the Revised Code if the director finds that an
enterprise is not a small business enterprise for the purposes of
this section. The director shall compile and maintain a register
of small business enterprises qualifying under this section and
shall certify the register to the tax commissioner. The director
shall also compile and maintain a record of the number of jobs
created or retained as a result of qualifying investments made
pursuant to this section.
(E) After the conclusion of the applicable holding period for
a qualifying investment, a person to whom a small business
investment certificate has been issued under this section may
claim a credit as provided under section 5747.81 of the Revised
Code.
(F) The director of development services, in consultation
with the tax commissioner, may adopt rules for the administration
of this section, including rules governing the following:
(1) Documents, records, or other information eligible
investors shall provide to the director;
(2) Any information a small business enterprise shall provide
for the purposes of this section and section 5747.81 of the
Revised Code;
(3) Determination of the number of full-time equivalent
employees of a small business enterprise;
(4) Verification of a small business enterprise's investment
in tangible personal property and intangible personal property
under division (A)(1)(c)(d) of this section, including when such
investments have been made and where the property is used in
business;
(5) Circumstances under which small business enterprises or
eligible investors may be subverting the purposes of this section
and section 5747.81 of the Revised Code.
There is hereby created in the state treasury the InvestOhio
support fund. The fund shall consist of the fees paid under
division (B) of this section and shall be used by the development
services agency to pay the costs of administering the small
business investment certificate program established under this
section.
Sec. 122.942. The director of development services shall,
with respect to each project for which a loan, grant, tax credit,
or other state-funded financial assistance is awarded by the
development services agency, make all of the following information
available to the public within thirty days after the agency enters
into a contract with the recipient:
(A) A summary of the project that includes all of the
following:
(1) A breakdown of the sources of the funds for each aspect
of the project, such as state or federal programs, the operating
company or entity itself, or any private financing, and a complete
description of how each type of funds is to be used;
(2) The total amount of assistance awarded;
(3) A brief description of the project;
(4) The following information regarding the project:
(a) The operating company or entity that is awarded the
assistance;
(b) The products or services provided by the operating
company or entity;
(c) The number of new jobs, at-risk jobs, and retained jobs
anticipated; the hourly wages and hourly benefits of those jobs;
and the dollar amount of assistance per job affected.
(5) The strengths and weaknesses of the project;
(6) The location of the project, the location of the
operating company or entity, and whether relocation is involved;
(7) The Ohio house district and Ohio senate district in which
the project is located;
(8) The payment terms and conditions of the assistance
awarded;
(9) The collateral or security required;
(10) The recommendation of the staff assigned to the project.
(B) A comprehensive report that provides a description of the
operating company or entity; all relevant information regarding
the project; an analysis of the operating company or entity and
the goods or services it provides; the explicit terms of any
collateral or security required; and the reasoning behind the
staffs' recommendation.
(C) Any other relevant information the controlling board may
request, or the director may consider necessary to more fully
describe the details of the assistance or the operating company or
entity, that is provided before the controlling board approves the
assistance.
Nothing in this section shall be construed as requiring the
disclosure of information that is not a public record under
section 149.43 of the Revised Code.
Sec. 122.97. (A) The business development and assistance
fund is hereby created in the state treasury. Investment earnings
on moneys in the fund shall be credited to the fund. The
development services agency shall deposit any money it receives
for business development services and business assistance services
to the credit of the fund, including:
(1) Reimbursements for services provided for business
development and business assistance services;
(2) Contract or grant payments from private entities;
(3) Donations or sponsorship payments from private entities;
(4) Contract or grant payments from public agencies or
political subdivisions.
(B) The agency shall use money in the fund for any agency
operating purposes or programs providing business support or
business assistance, including grants, loans, or administrative
expenses.
Sec. 149.311. (A) As used in this section:
(1) "Historic building" means a building, including its
structural components, that is located in this state and that is
either individually listed on the national register of historic
places under 16 U.S.C. 470a, located in a registered historic
district, and certified by the state historic preservation officer
as being of historic significance to the district, or is
individually listed as a historic landmark designated by a local
government certified under 16 U.S.C. 470a(c).
(2) "Qualified rehabilitation expenditures" means
expenditures paid or incurred during the rehabilitation period,
and before and after that period as determined under 26 U.S.C. 47,
by an owner or qualified lessee of a historic building to
rehabilitate the building. "Qualified rehabilitation expenditures"
includes architectural or engineering fees paid or incurred in
connection with the rehabilitation, and expenses incurred in the
preparation of nomination forms for listing on the national
register of historic places. "Qualified rehabilitation
expenditures" does not include any of the following:
(a) The cost of acquiring, expanding, or enlarging a historic
building;
(b) Expenditures attributable to work done to facilities
related to the building, such as parking lots, sidewalks, and
landscaping;
(c) New building construction costs.
(3) "Owner" of a historic building means a person holding the
fee simple interest in the building. "Owner" does not include the
state or a state agency, or any political subdivision as defined
in section 9.23 of the Revised Code.
(4) "Qualified lessee" means a person subject to a lease
agreement for a historic building and eligible for the federal
rehabilitation tax credit under 26 U.S.C. 47. "Qualified lessee"
does not include the state or a state agency or political
subdivision as defined in section 9.23 of the Revised Code.
(5) "Certificate owner" means the owner or qualified lessee
of a historic building to which a rehabilitation tax credit
certificate was issued under this section.
(5)(6) "Registered historic district" means a historic
district listed in the national register of historic places under
16 U.S.C. 470a, a historic district designated by a local
government certified under 16 U.S.C. 470a(c), or a local historic
district certified under 36 C.F.R. 67.8 and 67.9.
(6)(7) "Rehabilitation" means the process of repairing or
altering a historic building or buildings, making possible an
efficient use while preserving those portions and features of the
building and its site and environment that are significant to its
historic, architectural, and cultural values.
(7)(8) "Rehabilitation period" means one of the following:
(a) If the rehabilitation initially was not planned to be
completed in stages, a period chosen by the owner or qualified
lessee not to exceed twenty-four months during which
rehabilitation occurs;
(b) If the rehabilitation initially was planned to be
completed in stages, a period chosen by the owner or qualified
lessee not to exceed sixty months during which rehabilitation
occurs. Each stage shall be reviewed as a phase of a
rehabilitation as determined under 26 C.F.R. 1.48-12 or a
successor to that section.
(8)(9) "State historic preservation officer" or "officer"
means the state historic preservation officer appointed by the
governor under 16 U.S.C. 470a.
(B) The owner or qualified lessee of a historic building may
apply to the director of development for a rehabilitation tax
credit certificate for qualified rehabilitation expenditures paid
or incurred by such owner or qualified lessee after April 4, 2007,
for rehabilitation of a historic building. The If the owner of a
historic building enters a pass-through agreement with a qualified
lessee for the purposes of the federal rehabilitation tax credit
under 26 U.S.C. 47, the qualified rehabilitation expenditures paid
or incurred by the owner after April 4, 2007, shall be attributed
to the qualified lessee.
The form and manner of filing such applications shall be
prescribed by rule of the director of development. Each
application shall state the amount of qualified rehabilitation
expenditures the applicant estimates will be paid or incurred. The
director may require applicants to furnish documentation of such
estimates.
The director, after consultation with the tax commissioner
and in accordance with Chapter 119. of the Revised Code, shall
adopt rules that establish all of the following:
(1) Forms and procedures by which applicants may apply for
rehabilitation tax credit certificates;
(2) Criteria for reviewing, evaluating, and approving
applications for certificates within the limitations under
division (D) of this section, criteria for assuring that the
certificates issued encompass a mixture of high and low qualified
rehabilitation expenditures, and criteria for issuing certificates
under division (C)(3)(b) of this section;
(3) Eligibility requirements for obtaining a certificate
under this section;
(4) The form of rehabilitation tax credit certificates;
(5) Reporting requirements and monitoring procedures;
(6) Procedures and criteria for conducting cost-benefit
analyses of historic buildings that are the subjects of
applications filed under this section. The purpose of a
cost-benefit analysis shall be to determine whether rehabilitation
of the historic building will result in a net revenue gain in
state and local taxes once the building is used.
(7) Any other rules necessary to implement and administer
this section.
(C) The director of development shall review the applications
with the assistance of the state historic preservation officer and
determine whether all of the following criteria are met:
(1) That the building that is the subject of the application
is a historic building and the applicant is the owner or qualified
lessee of the building;
(2) That the rehabilitation will satisfy standards prescribed
by the United States secretary of the interior under 16 U.S.C.
470, et seq., as amended, and 36 C.F.R. 67.7 or a successor to
that section;
(3) That receiving a rehabilitation tax credit certificate
under this section is a major factor in:
(a) The applicant's decision to rehabilitate the historic
building; or
(b) To increase the level of investment in such
rehabilitation.
An applicant shall demonstrate to the satisfaction of the
state historic preservation officer and director of development
that the rehabilitation will satisfy the standards described in
division (C)(2) of this section before the applicant begins the
physical rehabilitation of the historic building.
(D)(1) If the director of development determines that an
application meets the criteria in divisions (C)(1), (2), and (3)
of this section, the director shall conduct a cost-benefit
analysis for the historic building that is the subject of the
application to determine whether rehabilitation of the historic
building will result in a net revenue gain in state and local
taxes once the building is used. The director shall consider the
results of the cost-benefit analysis in determining whether to
approve the application. The director shall also consider the
potential economic impact and the regional distributive balance of
the credits throughout the state. The director may approve an
application only after completion of the cost-benefit analysis.
(2) A rehabilitation tax credit certificate shall not be
issued for an amount greater than the estimated amount furnished
by the applicant on the application for such certificate and
approved by the director. The director shall not approve more than
a total of sixty million dollars of rehabilitation tax credits per
fiscal year but the director may reallocate unused tax credits
from a prior fiscal year for new applicants and such reallocated
credits shall not apply toward the dollar limit of this division.
(3) For rehabilitations with a rehabilitation period not
exceeding twenty-four months as provided in division (A)(7)(a) of
this section, a rehabilitation tax credit certificate shall not be
issued before the rehabilitation of the historic building is
completed.
(4) For rehabilitations with a rehabilitation period not
exceeding sixty months as provided in division (A)(7)(b) of this
section, a rehabilitation tax credit certificate shall not be
issued before a stage of rehabilitation is completed. After all
stages of rehabilitation are completed, if the director cannot
determine that the criteria in division (C) of this section are
satisfied for all stages of rehabilitations, the director shall
certify this finding to the tax commissioner, and any
rehabilitation tax credits received by the applicant shall be
repaid by the applicant and may be collected by assessment as
unpaid tax by the commissioner.
(5) The director of development shall require the applicant
to provide a third-party cost certification by a certified public
accountant of the actual costs attributed to the rehabilitation of
the historic building when qualified rehabilitation expenditures
exceed two hundred thousand dollars.
If an applicant whose application is approved for receipt of
a rehabilitation tax credit certificate fails to provide to the
director of development sufficient evidence of reviewable
progress, including a viable financial plan, copies of final
construction drawings, and evidence that the applicant has
obtained all historic approvals within twelve months after the
date the applicant received notification of approval, and if the
applicant fails to provide evidence to the director of development
that the applicant has secured and closed on financing for the
rehabilitation within eighteen months after receiving notification
of approval, the director may rescind the approval of the
application. The director shall notify the applicant if the
approval has been rescinded. Credits that would have been
available to an applicant whose approval was rescinded shall be
available for other qualified applicants. Nothing in this division
prohibits an applicant whose approval has been rescinded from
submitting a new application for a rehabilitation tax credit
certificate.
(E) Issuance of a certificate represents a finding by the
director of development of the matters described in divisions
(C)(1), (2), and (3) of this section only; issuance of a
certificate does not represent a verification or certification by
the director of the amount of qualified rehabilitation
expenditures for which a tax credit may be claimed under section
5725.151, 5725.34, 5729.17, 5733.47, or 5747.76 of the Revised
Code. The amount of qualified rehabilitation expenditures for
which a tax credit may be claimed is subject to inspection and
examination by the tax commissioner or employees of the
commissioner under section 5703.19 of the Revised Code and any
other applicable law. Upon the issuance of a certificate, the
director shall certify to the tax commissioner, in the form and
manner requested by the tax commissioner, the name of the
applicant, the amount of qualified rehabilitation expenditures
shown on the certificate, and any other information required by
the rules adopted under this section.
(F)(1) On or before the first day of April each year, the
director of development and tax commissioner jointly shall submit
to the president of the senate and the speaker of the house of
representatives a report on the tax credit program established
under this section and sections 5725.151, 5725.34, 5729.17,
5733.47, and 5747.76 of the Revised Code. The report shall present
an overview of the program and shall include information on the
number of rehabilitation tax credit certificates issued under this
section during the preceding fiscal year, an update on the status
of each historic building for which an application was approved
under this section, the dollar amount of the tax credits granted
under sections 5725.151, 5725.34, 5729.17, 5733.47, and 5747.76 of
the Revised Code, and any other information the director and
commissioner consider relevant to the topics addressed in the
report.
(2) On or before December 1, 2015, the director of
development and tax commissioner jointly shall submit to the
president of the senate and the speaker of the house of
representatives a comprehensive report that includes the
information required by division (F)(1) of this section and a
detailed analysis of the effectiveness of issuing tax credits for
rehabilitating historic buildings. The report shall be prepared
with the assistance of an economic research organization jointly
chosen by the director and commissioner.
(G) There is hereby created in the state treasury the
historic rehabilitation tax credit operating fund. The director of
development is authorized to charge reasonable application and
other fees in connection with the administration of tax credits
authorized by this section and sections 5725.151, 5725.34,
5729.17, 5733.44, and 5747.76 of the Revised Code. Any such fees
collected shall be credited to the fund and used to pay reasonable
costs incurred by the department of development in administering
this section and sections 5725.151, 5725.34, 5729.17, 5733.44, and
5747.76 of the Revised Code.
The Ohio historic preservation office is authorized to charge
reasonable fees in connection with its review and approval of
applications under this section. Any such fees collected shall be
credited to the fund and used to pay administrative costs incurred
by the Ohio historic preservation office pursuant to this section.
Sec. 149.43. (A) As used in this section:
(1) "Public record" means records kept by any public office,
including, but not limited to, state, county, city, village,
township, and school district units, and records pertaining to the
delivery of educational services by an alternative school in this
state kept by the nonprofit or for-profit entity operating the
alternative school pursuant to section 3313.533 of the Revised
Code. "Public record" does not mean any of the following:
(a) Medical records;
(b) Records pertaining to probation and parole proceedings or
to proceedings related to the imposition of community control
sanctions and post-release control sanctions;
(c) Records pertaining to actions under section 2151.85 and
division (C) of section 2919.121 of the Revised Code and to
appeals of actions arising under those sections;
(d) Records pertaining to adoption proceedings, including the
contents of an adoption file maintained by the department of
health under section 3705.12 of the Revised Code;
(e) Information in a record contained in the putative father
registry established by section 3107.062 of the Revised Code,
regardless of whether the information is held by the department of
job and family services or, pursuant to section 3111.69 of the
Revised Code, the office of child support in the department or a
child support enforcement agency;
(f) Records listed in division (A) of section 3107.42 of the
Revised Code or specified in division (A) of section 3107.52 of
the Revised Code;
(g) Trial preparation records;
(h) Confidential law enforcement investigatory records;
(i) Records containing information that is confidential under
section 2710.03 or 4112.05 of the Revised Code;
(j) DNA records stored in the DNA database pursuant to
section 109.573 of the Revised Code;
(k) Inmate records released by the department of
rehabilitation and correction to the department of youth services
or a court of record pursuant to division (E) of section 5120.21
of the Revised Code;
(l) Records maintained by the department of youth services
pertaining to children in its custody released by the department
of youth services to the department of rehabilitation and
correction pursuant to section 5139.05 of the Revised Code;
(m) Intellectual property records;
(n) Donor profile records;
(o) Records maintained by the department of job and family
services pursuant to section 3121.894 of the Revised Code;
(p) Peace officer, parole officer, probation officer,
bailiff, prosecuting attorney, assistant prosecuting attorney,
correctional employee, youth services employee, firefighter, EMT,
or investigator of the bureau of criminal identification and
investigation residential and familial information;
(q) In the case of a county hospital operated pursuant to
Chapter 339. of the Revised Code or a municipal hospital operated
pursuant to Chapter 749. of the Revised Code, information that
constitutes a trade secret, as defined in section 1333.61 of the
Revised Code;
(r) Information pertaining to the recreational activities of
a person under the age of eighteen;
(s) Records provided to, statements made by review board
members during meetings of, and all work products of a child
fatality review board acting under sections 307.621 to 307.629 of
the Revised Code, and child fatality review data submitted by the
child fatality review board to the department of health or a
national child death review database, other than the report
prepared pursuant to division (A) of section 307.626 of the
Revised Code;
(t) Records provided to and statements made by the executive
director of a public children services agency or a prosecuting
attorney acting pursuant to section 5153.171 of the Revised Code
other than the information released under that section;
(u) Test materials, examinations, or evaluation tools used in
an examination for licensure as a nursing home administrator that
the board of examiners of nursing home administrators administers
under section 4751.04 of the Revised Code or contracts under that
section with a private or government entity to administer;
(v) Records the release of which is prohibited by state or
federal law;
(w) Proprietary information of or relating to any person that
is submitted to or compiled by the Ohio venture capital authority
created under section 150.01 of the Revised Code;
(x) Information reported and evaluations conducted pursuant
to section 3701.072 of the Revised Code;
(y) Financial statements and data any person submits for any
purpose to the Ohio housing finance agency or the controlling
board in connection with applying for, receiving, or accounting
for financial assistance from the agency, and information that
identifies any individual who benefits directly or indirectly from
financial assistance from the agency;
(z) Records listed in section 5101.29 of the Revised Code;
(aa) Discharges recorded with a county recorder under section
317.24 of the Revised Code, as specified in division (B)(2) of
that section;
(bb) Usage information including names and addresses of
specific residential and commercial customers of a municipally
owned or operated public utility;
(cc) Records described in division (C) of section 187.04 of
the Revised Code that are not designated to be made available to
the public as provided in that division.
(2) "Confidential law enforcement investigatory record" means
any record that pertains to a law enforcement matter of a
criminal, quasi-criminal, civil, or administrative nature, but
only to the extent that the release of the record would create a
high probability of disclosure of any of the following:
(a) The identity of a suspect who has not been charged with
the offense to which the record pertains, or of an information
source or witness to whom confidentiality has been reasonably
promised;
(b) Information provided by an information source or witness
to whom confidentiality has been reasonably promised, which
information would reasonably tend to disclose the source's or
witness's identity;
(c) Specific confidential investigatory techniques or
procedures or specific investigatory work product;
(d) Information that would endanger the life or physical
safety of law enforcement personnel, a crime victim, a witness, or
a confidential information source.
(3) "Medical record" means any document or combination of
documents, except births, deaths, and the fact of admission to or
discharge from a hospital, that pertains to the medical history,
diagnosis, prognosis, or medical condition of a patient and that
is generated and maintained in the process of medical treatment.
(4) "Trial preparation record" means any record that contains
information that is specifically compiled in reasonable
anticipation of, or in defense of, a civil or criminal action or
proceeding, including the independent thought processes and
personal trial preparation of an attorney.
(5) "Intellectual property record" means a record, other than
a financial or administrative record, that is produced or
collected by or for faculty or staff of a state institution of
higher learning in the conduct of or as a result of study or
research on an educational, commercial, scientific, artistic,
technical, or scholarly issue, regardless of whether the study or
research was sponsored by the institution alone or in conjunction
with a governmental body or private concern, and that has not been
publicly released, published, or patented.
(6) "Donor profile record" means all records about donors or
potential donors to a public institution of higher education
except the names and reported addresses of the actual donors and
the date, amount, and conditions of the actual donation.
(7) "Peace officer, parole officer, probation officer,
bailiff, prosecuting attorney, assistant prosecuting attorney,
correctional employee, youth services employee, firefighter, EMT,
or investigator of the bureau of criminal identification and
investigation residential and familial information" means any
information that discloses any of the following about a peace
officer, parole officer, probation officer, bailiff, prosecuting
attorney, assistant prosecuting attorney, correctional employee,
youth services employee, firefighter, EMT, or investigator of the
bureau of criminal identification and investigation:
(a) The address of the actual personal residence of a peace
officer, parole officer, probation officer, bailiff, assistant
prosecuting attorney, correctional employee, youth services
employee, firefighter, EMT, or an investigator of the bureau of
criminal identification and investigation, except for the state or
political subdivision in which the peace officer, parole officer,
probation officer, bailiff, assistant prosecuting attorney,
correctional employee, youth services employee, firefighter, EMT,
or investigator of the bureau of criminal identification and
investigation resides;
(b) Information compiled from referral to or participation in
an employee assistance program;
(c) The social security number, the residential telephone
number, any bank account, debit card, charge card, or credit card
number, or the emergency telephone number of, or any medical
information pertaining to, a peace officer, parole officer,
probation officer, bailiff, prosecuting attorney, assistant
prosecuting attorney, correctional employee, youth services
employee, firefighter, EMT, or investigator of the bureau of
criminal identification and investigation;
(d) The name of any beneficiary of employment benefits,
including, but not limited to, life insurance benefits, provided
to a peace officer, parole officer, probation officer, bailiff,
prosecuting attorney, assistant prosecuting attorney, correctional
employee, youth services employee, firefighter, EMT, or
investigator of the bureau of criminal identification and
investigation by the peace officer's, parole officer's, probation
officer's, bailiff's, prosecuting attorney's, assistant
prosecuting attorney's, correctional employee's, youth services
employee's, firefighter's, EMT's, or investigator of the bureau of
criminal identification and investigation's employer;
(e) The identity and amount of any charitable or employment
benefit deduction made by the peace officer's, parole officer's,
probation officer's, bailiff's, prosecuting attorney's, assistant
prosecuting attorney's, correctional employee's, youth services
employee's, firefighter's, EMT's, or investigator of the bureau of
criminal identification and investigation's employer from the
peace officer's, parole officer's, probation officer's, bailiff's,
prosecuting attorney's, assistant prosecuting attorney's,
correctional employee's, youth services employee's, firefighter's,
EMT's, or investigator of the bureau of criminal identification
and investigation's compensation unless the amount of the
deduction is required by state or federal law;
(f) The name, the residential address, the name of the
employer, the address of the employer, the social security number,
the residential telephone number, any bank account, debit card,
charge card, or credit card number, or the emergency telephone
number of the spouse, a former spouse, or any child of a peace
officer, parole officer, probation officer, bailiff, prosecuting
attorney, assistant prosecuting attorney, correctional employee,
youth services employee, firefighter, EMT, or investigator of the
bureau of criminal identification and investigation;
(g) A photograph of a peace officer who holds a position or
has an assignment that may include undercover or plain clothes
positions or assignments as determined by the peace officer's
appointing authority.
As used in divisions (A)(7) and (B)(9) of this section,
"peace officer" has the same meaning as in section 109.71 of the
Revised Code and also includes the superintendent and troopers of
the state highway patrol; it does not include the sheriff of a
county or a supervisory employee who, in the absence of the
sheriff, is authorized to stand in for, exercise the authority of,
and perform the duties of the sheriff.
As used in divisions (A)(7) and (B)(5) of this section,
"correctional employee" means any employee of the department of
rehabilitation and correction who in the course of performing the
employee's job duties has or has had contact with inmates and
persons under supervision.
As used in divisions (A)(7) and (B)(5) of this section,
"youth services employee" means any employee of the department of
youth services who in the course of performing the employee's job
duties has or has had contact with children committed to the
custody of the department of youth services.
As used in divisions (A)(7) and (B)(9) of this section,
"firefighter" means any regular, paid or volunteer, member of a
lawfully constituted fire department of a municipal corporation,
township, fire district, or village.
As used in divisions (A)(7) and (B)(9) of this section, "EMT"
means EMTs-basic, EMTs-I, and paramedics that provide emergency
medical services for a public emergency medical service
organization. "Emergency medical service organization,"
"EMT-basic," "EMT-I," and "paramedic" have the same meanings as in
section 4765.01 of the Revised Code.
As used in divisions (A)(7) and (B)(9) of this section,
"investigator of the bureau of criminal identification and
investigation" has the meaning defined in section 2903.11 of the
Revised Code.
(8) "Information pertaining to the recreational activities of
a person under the age of eighteen" means information that is kept
in the ordinary course of business by a public office, that
pertains to the recreational activities of a person under the age
of eighteen years, and that discloses any of the following:
(a) The address or telephone number of a person under the age
of eighteen or the address or telephone number of that person's
parent, guardian, custodian, or emergency contact person;
(b) The social security number, birth date, or photographic
image of a person under the age of eighteen;
(c) Any medical record, history, or information pertaining to
a person under the age of eighteen;
(d) Any additional information sought or required about a
person under the age of eighteen for the purpose of allowing that
person to participate in any recreational activity conducted or
sponsored by a public office or to use or obtain admission
privileges to any recreational facility owned or operated by a
public office.
(9) "Community control sanction" has the same meaning as in
section 2929.01 of the Revised Code.
(10) "Post-release control sanction" has the same meaning as
in section 2967.01 of the Revised Code.
(11) "Redaction" means obscuring or deleting any information
that is exempt from the duty to permit public inspection or
copying from an item that otherwise meets the definition of a
"record" in section 149.011 of the Revised Code.
(12) "Designee" and "elected official" have the same meanings
as in section 109.43 of the Revised Code.
(B)(1) Upon request and subject to division (B)(8) of this
section, all public records responsive to the request shall be
promptly prepared and made available for inspection to any person
at all reasonable times during regular business hours. Subject to
division (B)(8) of this section, upon request, a public office or
person responsible for public records shall make copies of the
requested public record available at cost and within a reasonable
period of time. If a public record contains information that is
exempt from the duty to permit public inspection or to copy the
public record, the public office or the person responsible for the
public record shall make available all of the information within
the public record that is not exempt. When making that public
record available for public inspection or copying that public
record, the public office or the person responsible for the public
record shall notify the requester of any redaction or make the
redaction plainly visible. A redaction shall be deemed a denial of
a request to inspect or copy the redacted information, except if
federal or state law authorizes or requires a public office to
make the redaction.
(2) To facilitate broader access to public records, a public
office or the person responsible for public records shall organize
and maintain public records in a manner that they can be made
available for inspection or copying in accordance with division
(B) of this section. A public office also shall have available a
copy of its current records retention schedule at a location
readily available to the public. If a requester makes an ambiguous
or overly broad request or has difficulty in making a request for
copies or inspection of public records under this section such
that the public office or the person responsible for the requested
public record cannot reasonably identify what public records are
being requested, the public office or the person responsible for
the requested public record may deny the request but shall provide
the requester with an opportunity to revise the request by
informing the requester of the manner in which records are
maintained by the public office and accessed in the ordinary
course of the public office's or person's duties.
(3) If a request is ultimately denied, in part or in whole,
the public office or the person responsible for the requested
public record shall provide the requester with an explanation,
including legal authority, setting forth why the request was
denied. If the initial request was provided in writing, the
explanation also shall be provided to the requester in writing.
The explanation shall not preclude the public office or the person
responsible for the requested public record from relying upon
additional reasons or legal authority in defending an action
commenced under division (C) of this section.
(4) Unless specifically required or authorized by state or
federal law or in accordance with division (B) of this section, no
public office or person responsible for public records may limit
or condition the availability of public records by requiring
disclosure of the requester's identity or the intended use of the
requested public record. Any requirement that the requester
disclose the requestor's identity or the intended use of the
requested public record constitutes a denial of the request.
(5) A public office or person responsible for public records
may ask a requester to make the request in writing, may ask for
the requester's identity, and may inquire about the intended use
of the information requested, but may do so only after disclosing
to the requester that a written request is not mandatory and that
the requester may decline to reveal the requester's identity or
the intended use and when a written request or disclosure of the
identity or intended use would benefit the requester by enhancing
the ability of the public office or person responsible for public
records to identify, locate, or deliver the public records sought
by the requester.
(6) If any person chooses to obtain a copy of a public record
in accordance with division (B) of this section, the public office
or person responsible for the public record may require that
person to pay in advance the cost involved in providing the copy
of the public record in accordance with the choice made by the
person seeking the copy under this division. The public office or
the person responsible for the public record shall permit that
person to choose to have the public record duplicated upon paper,
upon the same medium upon which the public office or person
responsible for the public record keeps it, or upon any other
medium upon which the public office or person responsible for the
public record determines that it reasonably can be duplicated as
an integral part of the normal operations of the public office or
person responsible for the public record. When the person seeking
the copy makes a choice under this division, the public office or
person responsible for the public record shall provide a copy of
it in accordance with the choice made by the person seeking the
copy. Nothing in this section requires a public office or person
responsible for the public record to allow the person seeking a
copy of the public record to make the copies of the public record.
(7) Upon a request made in accordance with division (B) of
this section and subject to division (B)(6) of this section, a
public office or person responsible for public records shall
transmit a copy of a public record to any person by United States
mail or by any other means of delivery or transmission within a
reasonable period of time after receiving the request for the
copy. The public office or person responsible for the public
record may require the person making the request to pay in advance
the cost of postage if the copy is transmitted by United States
mail or the cost of delivery if the copy is transmitted other than
by United States mail, and to pay in advance the costs incurred
for other supplies used in the mailing, delivery, or transmission.
Any public office may adopt a policy and procedures that it
will follow in transmitting, within a reasonable period of time
after receiving a request, copies of public records by United
States mail or by any other means of delivery or transmission
pursuant to this division. A public office that adopts a policy
and procedures under this division shall comply with them in
performing its duties under this division.
In any policy and procedures adopted under this division, a
public office may limit the number of records requested by a
person that the office will transmit by United States mail to ten
per month, unless the person certifies to the office in writing
that the person does not intend to use or forward the requested
records, or the information contained in them, for commercial
purposes. For purposes of this division, "commercial" shall be
narrowly construed and does not include reporting or gathering
news, reporting or gathering information to assist citizen
oversight or understanding of the operation or activities of
government, or nonprofit educational research.
(8) A public office or person responsible for public records
is not required to permit a person who is incarcerated pursuant to
a criminal conviction or a juvenile adjudication to inspect or to
obtain a copy of any public record concerning a criminal
investigation or prosecution or concerning what would be a
criminal investigation or prosecution if the subject of the
investigation or prosecution were an adult, unless the request to
inspect or to obtain a copy of the record is for the purpose of
acquiring information that is subject to release as a public
record under this section and the judge who imposed the sentence
or made the adjudication with respect to the person, or the
judge's successor in office, finds that the information sought in
the public record is necessary to support what appears to be a
justiciable claim of the person.
(9)(a) Upon written request made and signed by a journalist
on or after December 16, 1999, a public office, or person
responsible for public records, having custody of the records of
the agency employing a specified peace officer, parole officer,
probation officer, bailiff, prosecuting attorney, assistant
prosecuting attorney, correctional employee, youth services
employee, firefighter, EMT, or investigator of the bureau of
criminal identification and investigation shall disclose to the
journalist the address of the actual personal residence of the
peace officer, parole officer, probation officer, bailiff,
prosecuting attorney, assistant prosecuting attorney, correctional
employee, youth services employee, firefighter, EMT, or
investigator of the bureau of criminal identification and
investigation and, if the peace officer's, parole officer's,
probation officer's, bailiff's, prosecuting attorney's, assistant
prosecuting attorney's, correctional employee's, youth services
employee's, firefighter's, EMT's, or investigator of the bureau of
criminal identification and investigation's spouse, former spouse,
or child is employed by a public office, the name and address of
the employer of the peace officer's, parole officer's, probation
officer's, bailiff's, prosecuting attorney's, assistant
prosecuting attorney's, correctional employee's, youth services
employee's, firefighter's, EMT's, or investigator of the bureau of
criminal identification and investigation's spouse, former spouse,
or child. The request shall include the journalist's name and
title and the name and address of the journalist's employer and
shall state that disclosure of the information sought would be in
the public interest.
(b) Division (B)(9)(a) of this section also applies to
journalist requests for customer information maintained by a
municipally owned or operated public utility, other than social
security numbers and any private financial information such as
credit reports, payment methods, credit card numbers, and bank
account information.
(c) As used in division (B)(9) of this section, "journalist"
means a person engaged in, connected with, or employed by any news
medium, including a newspaper, magazine, press association, news
agency, or wire service, a radio or television station, or a
similar medium, for the purpose of gathering, processing,
transmitting, compiling, editing, or disseminating information for
the general public.
(C)(1) If a person allegedly is aggrieved by the failure of a
public office or the person responsible for public records to
promptly prepare a public record and to make it available to the
person for inspection in accordance with division (B) of this
section or by any other failure of a public office or the person
responsible for public records to comply with an obligation in
accordance with division (B) of this section, the person allegedly
aggrieved may commence a mandamus action to obtain a judgment that
orders the public office or the person responsible for the public
record to comply with division (B) of this section, that awards
court costs and reasonable attorney's fees to the person that
instituted the mandamus action, and, if applicable, that includes
an order fixing statutory damages under division (C)(1) of this
section. The mandamus action may be commenced in the court of
common pleas of the county in which division (B) of this section
allegedly was not complied with, in the supreme court pursuant to
its original jurisdiction under Section 2 of Article IV, Ohio
Constitution, or in the court of appeals for the appellate
district in which division (B) of this section allegedly was not
complied with pursuant to its original jurisdiction under Section
3 of Article IV, Ohio Constitution.
If a requestor transmits a written request by hand delivery
or certified mail to inspect or receive copies of any public
record in a manner that fairly describes the public record or
class of public records to the public office or person responsible
for the requested public records, except as otherwise provided in
this section, the requestor shall be entitled to recover the
amount of statutory damages set forth in this division if a court
determines that the public office or the person responsible for
public records failed to comply with an obligation in accordance
with division (B) of this section.
The amount of statutory damages shall be fixed at one hundred
dollars for each business day during which the public office or
person responsible for the requested public records failed to
comply with an obligation in accordance with division (B) of this
section, beginning with the day on which the requester files a
mandamus action to recover statutory damages, up to a maximum of
one thousand dollars. The award of statutory damages shall not be
construed as a penalty, but as compensation for injury arising
from lost use of the requested information. The existence of this
injury shall be conclusively presumed. The award of statutory
damages shall be in addition to all other remedies authorized by
this section.
The court may reduce an award of statutory damages or not
award statutory damages if the court determines both of the
following:
(a) That, based on the ordinary application of statutory law
and case law as it existed at the time of the conduct or
threatened conduct of the public office or person responsible for
the requested public records that allegedly constitutes a failure
to comply with an obligation in accordance with division (B) of
this section and that was the basis of the mandamus action, a
well-informed public office or person responsible for the
requested public records reasonably would believe that the conduct
or threatened conduct of the public office or person responsible
for the requested public records did not constitute a failure to
comply with an obligation in accordance with division (B) of this
section;
(b) That a well-informed public office or person responsible
for the requested public records reasonably would believe that the
conduct or threatened conduct of the public office or person
responsible for the requested public records would serve the
public policy that underlies the authority that is asserted as
permitting that conduct or threatened conduct.
(2)(a) If the court issues a writ of mandamus that orders the
public office or the person responsible for the public record to
comply with division (B) of this section and determines that the
circumstances described in division (C)(1) of this section exist,
the court shall determine and award to the relator all court
costs.
(b) If the court renders a judgment that orders the public
office or the person responsible for the public record to comply
with division (B) of this section, the court may award reasonable
attorney's fees subject to reduction as described in division
(C)(2)(c) of this section. The court shall award reasonable
attorney's fees, subject to reduction as described in division
(C)(2)(c) of this section when either of the following applies:
(i) The public office or the person responsible for the
public records failed to respond affirmatively or negatively to
the public records request in accordance with the time allowed
under division (B) of this section.
(ii) The public office or the person responsible for the
public records promised to permit the relator to inspect or
receive copies of the public records requested within a specified
period of time but failed to fulfill that promise within that
specified period of time.
(c) Court costs and reasonable attorney's fees awarded under
this section shall be construed as remedial and not punitive.
Reasonable attorney's fees shall include reasonable fees incurred
to produce proof of the reasonableness and amount of the fees and
to otherwise litigate entitlement to the fees. The court may
reduce an award of attorney's fees to the relator or not award
attorney's fees to the relator if the court determines both of the
following:
(i) That, based on the ordinary application of statutory law
and case law as it existed at the time of the conduct or
threatened conduct of the public office or person responsible for
the requested public records that allegedly constitutes a failure
to comply with an obligation in accordance with division (B) of
this section and that was the basis of the mandamus action, a
well-informed public office or person responsible for the
requested public records reasonably would believe that the conduct
or threatened conduct of the public office or person responsible
for the requested public records did not constitute a failure to
comply with an obligation in accordance with division (B) of this
section;
(ii) That a well-informed public office or person responsible
for the requested public records reasonably would believe that the
conduct or threatened conduct of the public office or person
responsible for the requested public records as described in
division (C)(2)(c)(i) of this section would serve the public
policy that underlies the authority that is asserted as permitting
that conduct or threatened conduct.
(D) Chapter 1347. of the Revised Code does not limit the
provisions of this section.
(E)(1) To ensure that all employees of public offices are
appropriately educated about a public office's obligations under
division (B) of this section, all elected officials or their
appropriate designees shall attend training approved by the
attorney general as provided in section 109.43 of the Revised
Code. In addition, all public offices shall adopt a public records
policy in compliance with this section for responding to public
records requests. In adopting a public records policy under this
division, a public office may obtain guidance from the model
public records policy developed and provided to the public office
by the attorney general under section 109.43 of the Revised Code.
Except as otherwise provided in this section, the policy may not
limit the number of public records that the public office will
make available to a single person, may not limit the number of
public records that it will make available during a fixed period
of time, and may not establish a fixed period of time before it
will respond to a request for inspection or copying of public
records, unless that period is less than eight hours.
(2) The public office shall distribute the public records
policy adopted by the public office under division (E)(1) of this
section to the employee of the public office who is the records
custodian or records manager or otherwise has custody of the
records of that office. The public office shall require that
employee to acknowledge receipt of the copy of the public records
policy. The public office shall create a poster that describes its
public records policy and shall post the poster in a conspicuous
place in the public office and in all locations where the public
office has branch offices. The public office may post its public
records policy on the internet web site of the public office if
the public office maintains an internet web site. A public office
that has established a manual or handbook of its general policies
and procedures for all employees of the public office shall
include the public records policy of the public office in the
manual or handbook.
(F)(1) The bureau of motor vehicles may adopt rules pursuant
to Chapter 119. of the Revised Code to reasonably limit the number
of bulk commercial special extraction requests made by a person
for the same records or for updated records during a calendar
year. The rules may include provisions for charges to be made for
bulk commercial special extraction requests for the actual cost of
the bureau, plus special extraction costs, plus ten per cent. The
bureau may charge for expenses for redacting information, the
release of which is prohibited by law.
(2) As used in division (F)(1) of this section:
(a) "Actual cost" means the cost of depleted supplies,
records storage media costs, actual mailing and alternative
delivery costs, or other transmitting costs, and any direct
equipment operating and maintenance costs, including actual costs
paid to private contractors for copying services.
(b) "Bulk commercial special extraction request" means a
request for copies of a record for information in a format other
than the format already available, or information that cannot be
extracted without examination of all items in a records series,
class of records, or data base by a person who intends to use or
forward the copies for surveys, marketing, solicitation, or resale
for commercial purposes. "Bulk commercial special extraction
request" does not include a request by a person who gives
assurance to the bureau that the person making the request does
not intend to use or forward the requested copies for surveys,
marketing, solicitation, or resale for commercial purposes.
(c) "Commercial" means profit-seeking production, buying, or
selling of any good, service, or other product.
(d) "Special extraction costs" means the cost of the time
spent by the lowest paid employee competent to perform the task,
the actual amount paid to outside private contractors employed by
the bureau, or the actual cost incurred to create computer
programs to make the special extraction. "Special extraction
costs" include any charges paid to a public agency for computer or
records services.
(3) For purposes of divisions (F)(1) and (2) of this section,
"surveys, marketing, solicitation, or resale for commercial
purposes" shall be narrowly construed and does not include
reporting or gathering news, reporting or gathering information to
assist citizen oversight or understanding of the operation or
activities of government, or nonprofit educational research.
Sec. 164.05. (A) The director of the Ohio public works
commission shall do all of the following:
(1) Approve requests for financial assistance from district
public works integrating committees and enter into agreements with
one or more local subdivisions to provide loans, grants, and local
debt support and credit enhancements for a capital improvement
project if the director determines that:
(a) The project is an eligible project pursuant to this
chapter;
(b) The financial assistance for the project has been
properly approved and requested by the district committee of the
district which includes the recipient of the loan or grant;
(c) The amount of the financial assistance, when added to all
other financial assistance provided during the fiscal year for
projects within the district, does not exceed that district's
allocation of money from the state capital improvements fund for
that fiscal year;
(d) The district committee has provided such documentation
and other evidence as the director may require that the district
committee has satisfied the requirements of section 164.06 or
164.14 of the Revised Code;
(e) The portion of a district's annual allocation which the
director approves in the form of loans and local debt support and
credit enhancements for eligible projects is consistent with
divisions (E) and (F) of this section.
(2) Authorize payments to local subdivisions or their
contractors for costs incurred for capital improvement projects
which have been approved pursuant to this chapter. All requests
for payments shall be submitted to the director on forms and in
accordance with procedures specified in rules adopted by the
director pursuant to division (A)(4) of this section.
(3) Retain the services of or employ financial consultants,
engineers, accountants, attorneys, and such other employees as the
director determines are necessary to carry out the director's
duties under this chapter and fix the compensation for their
services;
(4) Adopt rules establishing the procedures for making
applications, reviewing, approving, and rejecting projects for
which assistance is authorized under this chapter, and any other
rules needed to implement the provisions of this chapter. Such
rules shall be adopted under Chapter 119. of the Revised Code.
(5) Provide information and other assistance to local
subdivisions and district public works integrating committees in
developing their requests for financial assistance for capital
improvements under this chapter and encourage cooperation and
coordination of requests and the development of multisubdivision
and multidistrict projects in order to maximize the benefits that
may be derived by districts from each year's allocation;
(6) Require local subdivisions, to the extent practicable, to
use Ohio products, materials, services, and labor in connection
with any capital improvement project financed in whole or in part
under this chapter;
(7) Notify the director of budget and management of all
approved projects, and supply all information necessary to track
approved projects through the state accounting system;
(8) Appoint the administrator of the Ohio small government
capital improvements commission;
(9) Do all other acts, enter into contracts, and execute all
instruments necessary or appropriate to carry out this chapter;
(10) Develop a standardized methodology for evaluating
capital improvement needs which will be used by local subdivisions
in preparing the plans required by division (C) of section 164.06
of the Revised Code. The director shall develop this methodology
not later than July 1, 1991.
(11) Establish a program to provide local subdivisions with
technical assistance in preparing project applications. The
program shall be designed to assist local subdivisions that lack
the financial or technical resources to prepare project
applications on their own.
(B) When the director of the Ohio public works commission
decides to conditionally approve or disapprove projects, the
director's decisions and the reasons for which they are made shall
be made in writing. These written decisions shall be conclusive
for the purposes of the validity and enforceability of such
determinations.
(C) Fees, charges, rates of interest, times of payment of
interest and principal, and other terms, conditions, and
provisions of and security for financial assistance provided
pursuant to the provisions of this chapter shall be such as the
director determines to be appropriate. If any payments required by
a loan agreement entered into pursuant to this chapter are not
paid, the funds which would otherwise be apportioned to the local
subdivision from the county undivided local government fund,
pursuant to sections 5747.51 to 5747.53 of the Revised Code, may,
at the direction of the director of the Ohio public works
commission, be reduced by the amount payable. The county treasurer
shall, at the direction of the director, pay the amount of such
reductions to the state capital improvements revolving loan fund.
The director may renegotiate a loan repayment schedule with a
local subdivision whose payments from the county undivided local
government fund could be reduced pursuant to this division, but
such a renegotiation may occur only one time with respect to any
particular loan agreement.
(D) Grants approved for the repair and replacement of
existing infrastructure pursuant to this chapter shall not exceed
ninety per cent of the estimated total cost of the capital
improvement project. Grants approved for new or expanded
infrastructure shall not exceed fifty per cent of the estimated
cost of the new or expansion elements of the capital improvement
project. A local subdivision share of the estimated cost of a
capital improvement may consist of any of the following:
(1) The reasonable value, as determined by the director or
the administrator, of labor, materials, and equipment that will be
contributed by the local subdivision in performing the capital
improvement project;
(2) Moneys received by the local subdivision in any form from
an authority, commission, or agency of the United States for use
in performing the capital improvement project;
(3) Loans made to the local subdivision under this chapter;
(4) Engineering costs incurred by the local subdivision in
performing engineering activities related to the project.
A local subdivision share of the cost of a capital
improvement shall not include any amounts awarded to it from the
local transportation improvement program fund created in section
164.14 of the Revised Code.
(E) The following portion of a district public works
integrating committee's annual allocation share pursuant to
section 164.08 of the Revised Code may be awarded to subdivisions
only in the form of interest-free, low-interest, market rate of
interest, or blended-rate loans:
|
YEAR IN WHICH |
|
PORTION USED FOR |
|
|
|
MONEYS ARE ALLOCATED |
|
LOANS |
|
|
|
Year 1 |
|
0% |
|
|
|
Year 2 |
|
0% |
|
|
|
Year 3 |
|
10% |
|
|
|
Year 4 |
|
12% |
|
|
|
Year 5 |
|
15% |
|
|
|
Year 6 |
|
20% |
|
|
|
Year 7, 8, 9, and 10 |
|
22% |
|
|
(F) The following portion of a district public works
integrating committee's annual allocation pursuant to section
164.08 of the Revised Code shall be awarded to subdivisions in the
form of local debt supported and credit enhancements:
|
|
|
PORTIONS USED FOR |
|
|
|
YEAR IN WHICH |
|
LOCAL DEBT SUPPORT |
|
|
|
MONEYS ARE ALLOCATED |
|
AND CREDIT ENHANCEMENTS |
|
|
|
Year 1 |
|
0% |
|
|
|
Year 2 |
|
0% |
|
|
|
Year 3 |
|
3% |
|
|
|
Year 4 |
|
5% |
|
|
|
Year 5 |
|
5% |
|
|
|
Year 6 |
|
7% |
|
|
|
Year 7 |
|
7% |
|
|
|
Year 8 |
|
8% |
|
|
|
Year 9 |
|
8% |
|
|
|
Year 10 |
|
8% |
|
|
(G) For the period commencing on March 29, 1988 and ending on
June 30, 1993, for the period commencing July 1, 1993, and ending
June 30, 1999, and for each five-year period thereafter, the total
amount of financial assistance awarded under sections 164.01 to
164.08 of the Revised Code for capital improvement projects
located wholly or partially within a county shall be equal to at
least thirty per cent of the amount of what the county would have
been allocated from the obligations authorized to be sold under
this chapter during each period, if such amounts had been
allocable to each county on a per capita basis.
(H) The amount of the annual allocations made pursuant to
divisions (B)(1) and (6)(5) of section 164.08 of the Revised Code
which can be used for new or expanded infrastructure is limited as
follows:
|
|
|
PORTION WHICH MAY |
|
|
|
YEAR IN WHICH |
|
BE USED FOR NEW OR |
|
|
|
MONEYS ARE ALLOCATED |
|
EXPANSION INFRASTRUCTURE |
|
|
|
Year 1 |
|
5% |
|
|
|
Year 2 |
|
5% |
|
|
|
Year 3 |
|
10% |
|
|
|
Year 4 |
|
10% |
|
|
|
Year 5 |
|
10% |
|
|
|
Year 6 |
|
15% |
|
|
|
Year 7 |
|
15% |
|
|
|
Year 8 |
|
20% |
|
|
|
Year 9 |
|
20% |
|
|
|
Year 10 and each year |
|
|
|
|
|
thereafter |
|
20% |
|
|
(I) The following portion of a district public works
integrating committee's annual allocation share pursuant to
section 164.08 of the Revised Code shall be awarded to
subdivisions in the form of interest-free, low-interest, market
rate of interest, or blended-rate loans, or local debt support and
credit enhancements:
|
PORTION USED FOR LOANS |
|
|
YEAR IN WHICH |
OR LOCAL DEBT SUPPORT |
|
|
MONEYS ARE ALLOCATED |
AND CREDIT ENHANCEMENTS |
|
|
Year 11 and each year |
|
|
|
thereafter |
20% |
|
|
(J) No project shall be approved under this section unless
the project is designed to have a useful life of at least seven
years. In addition, the average useful life of all projects for
which grants or loans are awarded in each district during a
program year shall not be less than twenty years.
Sec. 164.06. (A) Each district public works integrating
committee shall evaluate materials submitted to it by the local
subdivisions located in the district concerning capital
improvements for which assistance is sought from the state capital
improvements fund and shall, pursuant to division (B) of this
section, select the requests for financial assistance that will be
formally submitted by the district to the director of the Ohio
public works commission. In order to provide for the efficient use
of the district's state capital improvements fund allocation each
year, a district committee shall assist its subdivisions in the
preparation and coordination of project plans.
(B) In selecting the requests for assistance for capital
improvement projects which will be submitted to the director, and
in determining the nature, amount, and terms of the assistance
that will be requested, a district public works integrating
committee shall give priority to capital improvement projects for
the repair or replacement of existing infrastructure and which
would be unlikely to be undertaken without assistance under this
chapter, and shall specifically consider all of the following
factors:
(1) The infrastructure repair and replacement needs of the
district;
(2) The age and condition of the system to be repaired or
replaced;
(3) Whether the project would generate revenue in the form of
user fees or assessments;
(4) The importance of the project to the health and safety of
the citizens of the district;
(5) The cost of the project and whether it is consistent with
division (G) of section 164.05 of the Revised Code and the
district's allocation for grants, loans, and local debt support
and credit enhancements for that year;
(6) The effort and ability of the benefited local
subdivisions to assist in financing the project;
(7) The availability of federal or other funds for the
project;
(8) The overall economic health of the particular local
subdivision;
(9) The adequacy of the planning for the project and the
readiness of the applicant to proceed should the project be
approved;
(10) Any other factors relevant to a particular project.
(C) Prior to filing an application with its district public
works integrating committee for assistance in financing a capital
improvement project under this section, a local subdivision shall
conduct a study of its existing capital improvements, the
condition of those improvements, and the projected capital
improvement needs of the subdivision in the ensuing five-year
period. After completing this study, the subdivision shall compile
a report that includes an inventory of its existing capital
improvements, a plan detailing the capital improvement needs of
the subdivision in the ensuing five-year period, and a list of the
subdivision's priorities with respect to addressing those needs.
Each year, the report shall be reviewed and updated by the
subdivision to reflect capital improvement projects undertaken or
completed in the past year and any changes in the subdivision's
plan or priorities. The report and annual updates shall be made
available upon request to the Ohio public works commission, the
Ohio small government capital improvements commission, and the
district public works integrating committee of the district of
which the subdivision is a part.
(D) In addition to reviewing and selecting the projects for
which approval will be sought from the director of the Ohio public
works commission for financial assistance from the state capital
improvements fund, each district public works integrating
committee shall appoint a subcommittee of its members that will
represent the interests of villages and townships and that will
review and select the capital improvement projects which will be
submitted by the subcommittee to the administrator of the Ohio
small government capital improvements commission for consideration
of assistance from the portion of the net proceeds of obligations
issued and sold by the treasurer of state which is allocated
pursuant to division (B)(1) of section 164.08 of the Revised Code.
In reviewing and approving the projects selected by its
subcommittee, the administrator, and the Ohio small government
capital improvements commission shall be guided by the provisions
of division (B) of this section, and shall also take into account
the fact that villages and townships may have different public
infrastructure needs than larger subdivisions.
(E) The district public works integrating committee for each
district that includes at least one county with a population of
less than eighty-five thousand according to the most recent
decennial census shall appoint a subcommittee of its members for
the purposes of the small counties capital improvement program
created under division (F) of section 164.02 of the Revised Code.
The subcommittee shall select and submit to the director the
projects that will be considered for assistance from the money
allocated to the program under division (B)(4)(3) of section
164.08 of the Revised Code.
Sec. 164.08. (A) Except as provided in sections 151.01 and
151.08 or section 164.09 of the Revised Code, the net proceeds of
obligations issued and sold by the treasurer of state pursuant to
section 164.09 of the Revised Code before September 30, 2000, or
pursuant to sections 151.01 and 151.08 of the Revised Code, for
the purpose of financing or assisting in the financing of the cost
of public infrastructure capital improvement projects of local
subdivisions, as provided for in Section 2k, 2m, or 2p of Article
VIII, Ohio Constitution, and this chapter, shall be paid into the
state capital improvements fund, which is hereby created in the
state treasury. Investment earnings on moneys in the fund shall be
credited to the fund.
(B) Beginning July 1, 2011, each program year the amount of
obligations authorized by the general assembly in accordance with
sections 151.01 and 151.08 or section 164.09 of the Revised Code,
excluding the proceeds of refunding or renewal obligations, shall
be allocated by the director of the Ohio public works commission
as follows:
(1) First, fifteen million dollars of the amount of
obligations authorized shall be allocated to provide financial
assistance to villages and to townships with populations in the
unincorporated areas of the township of less than five thousand
persons, for capital improvements in accordance with section
164.051 and division (D) of section 164.06 of the Revised Code. As
used in division (B)(1) of this section, "capital improvements"
includes resurfacing and improving roads.
(2) Following the allocation required by division (B)(1) of
this section, the director may allocate three million dollars of
the authorized obligations to provide financial assistance to
local subdivisions for capital improvement projects which in the
judgment of the director of the Ohio public works commission are
necessary for the immediate preservation of the health, safety,
and welfare of the citizens of the local subdivision requesting
assistance.
(3) For the second, third, fourth, and fifth years that
obligations are authorized and are available for allocation under
this chapter, one million dollars shall be allocated to the sewer
and water fund created in section 1525.11 of the Revised Code.
Money from this allocation shall be transferred to that fund when
needed to support specific payments from that fund.
(4) For program years twelve and fourteen that obligations
are authorized and available for allocation under this chapter,
two million dollars each program year shall be allocated to the
small county capital improvement program for use in providing
financial assistance under division (F) of section 164.02 of the
Revised Code.
(5) After the allocation required by division (B)(3) of this
section is made, the (4) The director shall determine the amount
of the remaining obligations authorized to be issued and sold that
each county would receive if such amounts were allocated on a per
capita basis each year. If a county's per capita share for the
year would be less than three hundred thousand dollars, the
director shall allocate to the district in which that county is
located an amount equal to the difference between three hundred
thousand dollars and the county's per capita share.
(6)(5) After making the allocation required by division
(B)(5)(4) of this section, the director shall allocate the
remaining amount to each district on a per capita basis.
(C)(1) There is hereby created in the state treasury the
state capital improvements revolving loan fund, into which shall
be deposited all repayments of loans made to local subdivisions
for capital improvements pursuant to this chapter. Investment
earnings on moneys in the fund shall be credited to the fund.
(2) There may also be deposited in the state capital
improvements revolving loan fund moneys obtained from federal or
private grants, or from other sources, which are to be used for
any of the purposes authorized by this chapter. Such moneys shall
be allocated each year in accordance with division (B)(6)(5) of
this section.
(3) Moneys deposited into the state capital improvements
revolving loan fund shall be used to make loans for the purpose of
financing or assisting in the financing of the cost of capital
improvement projects of local subdivisions.
(4) Investment earnings credited to the state capital
improvements revolving loan fund that exceed the amounts required
to meet estimated federal arbitrage rebate requirements shall be
used to pay costs incurred by the public works commission in
administering this section. Investment earnings credited to the
state capital improvements revolving loan fund that exceed the
amounts required to pay for the administrative costs and estimated
rebate requirements shall be allocated to each district on a per
capita basis.
(5) Each program year, loan repayments received and on
deposit in the state capital improvements revolving loan fund
shall be allocated as follows:
(a) Each district public works integrating committee shall be
allocated an amount equal to the sum of all loan repayments made
to the state capital improvements revolving loan fund by local
subdivisions that are part of the district. Moneys not used in a
program year may be used in the next program year in the same
manner and for the same purpose as originally allocated.
(b) Loan repayments made pursuant to projects approved under
division (B)(1) of this section shall be used to make loans in
accordance with section 164.051 and division (D) of section 164.06
of the Revised Code. Allocations for this purpose made pursuant to
division (C)(5) of this section shall be in addition to the
allocation provided in division (B)(1) of this section.
(c) Loan repayments made pursuant to projects approved under
division (B)(2) of this section shall be used to make loans in
accordance with division (B)(2) of this section. Allocations for
this purpose made pursuant to division (C)(5) of this section
shall be in addition to the allocation provided in division (B)(2)
of this section.
(d) Loans made from the state capital improvements revolving
loan fund shall not be limited in their usage by divisions (E),
(F), (G), (H), and (I) of section 164.05 of the Revised Code.
(D) Investment earnings credited to the state capital
improvements fund that exceed the amounts required to meet
estimated federal arbitrage rebate requirements shall be used to
pay costs incurred by the public works commission in administering
sections 164.01 to 164.12 of the Revised Code.
(E) The director of the Ohio public works commission shall
notify the director of budget and management of the amounts
allocated pursuant to this section and such information shall be
entered into the state accounting system. The director of budget
and management shall establish appropriation line items as needed
to track these allocations.
(F) If the amount of a district's allocation in a program
year exceeds the amount of financial assistance approved for the
district by the commission for that year, the remaining portion of
the district's allocation shall be added to the district's
allocation pursuant to division (B) of this section for the next
succeeding year for use in the same manner and for the same
purposes as it was originally allocated, except that any portion
of a district's allocation which was available for use on new or
expanded infrastructure pursuant to division (H) of section 164.05
of the Revised Code shall be available in succeeding years only
for the repair and replacement of existing infrastructure.
(G) When an allocation based on population is made by the
director pursuant to division (B) of this section, the director
shall use the most recent decennial census statistics, and shall
not make any reallocations based upon a change in a district's
population.
Sec. 166.01. As used in this chapter:
(A) "Allowable costs" means all or part of the costs of
project facilities, eligible projects, eligible innovation
projects, eligible research and development projects, eligible
advanced energy projects, or eligible logistics and distribution
projects, including costs of acquiring, constructing,
reconstructing, rehabilitating, renovating, enlarging, improving,
equipping, or furnishing project facilities, eligible projects,
eligible innovation projects, eligible research and development
projects, eligible advanced energy projects, or eligible logistics
and distribution projects, site clearance and preparation,
supplementing and relocating public capital improvements or
utility facilities, designs, plans, specifications, surveys,
studies, and estimates of costs, expenses necessary or incident to
determining the feasibility or practicability of assisting an
eligible project, an eligible innovation project, an eligible
research and development project, an eligible advanced energy
project, or an eligible logistics and distribution project, or
providing project facilities or facilities related to an eligible
project, an eligible innovation project, an eligible research and
development project, an eligible advanced energy project, or an
eligible logistics and distribution project, architectural,
engineering, and legal services fees and expenses, the costs of
conducting any other activities as part of a voluntary action, and
such other expenses as may be necessary or incidental to the
establishment or development of an eligible project, an eligible
innovation project, an eligible research and development project,
an eligible advanced energy project, or an eligible logistics and
distribution project, and reimbursement of moneys advanced or
applied by any governmental agency or other person for allowable
costs.
(B) "Allowable innovation costs" includes allowable costs of
eligible innovation projects and, in addition, includes the costs
of research and development of eligible innovation projects;
obtaining or creating any requisite software or computer hardware
related to an eligible innovation project or the products or
services associated therewith; testing (including, without
limitation, quality control activities necessary for initial
production), perfecting, and marketing of such products and
services; creating and protecting intellectual property related to
an eligible innovation project or any products or services related
thereto, including costs of securing appropriate patent,
trademark, trade secret, trade dress, copyright, or other form of
intellectual property protection for an eligible innovation
project or related products and services; all to the extent that
such expenditures could be capitalized under then-applicable
generally accepted accounting principles; and the reimbursement of
moneys advanced or applied by any governmental agency or other
person for allowable innovation costs.
(C) "Eligible innovation project" includes an eligible
project, including any project facilities associated with an
eligible innovation project and, in addition, includes all
tangible and intangible property related to a new product or
process based on new technology or the creative application of
existing technology, including research and development, product
or process testing, quality control, market research, and related
activities, that is to be acquired, established, expanded,
remodeled, rehabilitated, or modernized for industry, commerce,
distribution, or research, or any combination thereof, the
operation of which, alone or in conjunction with other eligible
projects, eligible innovation projects, or innovation property,
will create new jobs or preserve existing jobs and employment
opportunities and improve the economic welfare of the people of
the state.
(D) "Eligible project" means project facilities to be
acquired, established, expanded, remodeled, rehabilitated, or
modernized for industry, commerce, distribution, or research, or
any combination thereof, the operation of which, alone or in
conjunction with other facilities, will create new jobs or
preserve existing jobs and employment opportunities and improve
the economic welfare of the people of the state. "Eligible
project" includes, without limitation, a voluntary action. For
purposes of this division, "new jobs" does not include existing
jobs transferred from another facility within the state, and
"existing jobs" includes only those existing jobs with work places
within the municipal corporation or unincorporated area of the
county in which the eligible project is located.
"Eligible project" does not include project facilities to be
acquired, established, expanded, remodeled, rehabilitated, or
modernized for industry, commerce, distribution, or research, or
any combination of industry, commerce, distribution, or research,
if the project facilities consist solely of
point-of-final-purchase retail facilities. If the project
facilities consist of both point-of-final-purchase retail
facilities and nonretail facilities, only the portion of the
project facilities consisting of nonretail facilities is an
eligible project. If a warehouse facility is part of a
point-of-final-purchase retail facility and supplies only that
facility, the warehouse facility is not an eligible project.
Catalog distribution facilities are not considered
point-of-final-purchase retail facilities for purposes of this
paragraph, and are eligible projects.
(E) "Eligible research and development project" means an
eligible project, including project facilities, comprising,
within, or related to, a facility or portion of a facility at
which research is undertaken for the purpose of discovering
information that is technological in nature and the application of
which is intended to be useful in the development of a new or
improved product, process, technique, formula, or invention, a new
product or process based on new technology, or the creative
application of existing technology.
(F) "Financial assistance" means inducements under division
(B) of section 166.02 of the Revised Code, loan guarantees under
section 166.06 of the Revised Code, and direct loans under section
166.07 of the Revised Code.
(G) "Governmental action" means any action by a governmental
agency relating to the establishment, development, or operation of
an eligible project, eligible innovation project, eligible
research and development project, eligible advanced energy
project, or eligible logistics and distribution project, and
project facilities that the governmental agency acting has
authority to take or provide for the purpose under law, including,
but not limited to, actions relating to contracts and agreements,
zoning, building, permits, acquisition and disposition of
property, public capital improvements, utility and transportation
service, taxation, employee recruitment and training, and liaison
and coordination with and among governmental agencies.
(H) "Governmental agency" means the state and any state
department, division, commission, institution or authority; a
municipal corporation, county, or township, and any agency
thereof, and any other political subdivision or public corporation
or the United States or any agency thereof; any agency,
commission, or authority established pursuant to an interstate
compact or agreement; and any combination of the above.
(I) "Innovation financial assistance" means inducements under
division (B) of section 166.12 of the Revised Code, innovation
Ohio loan guarantees under section 166.15 of the Revised Code, and
innovation Ohio loans under section 166.16 of the Revised Code.
(J) "Innovation Ohio loan guarantee reserve requirement"
means, at any time, with respect to innovation loan guarantees
made under section 166.15 of the Revised Code, a balance in the
innovation Ohio loan guarantee fund equal to the greater of twenty
per cent of the then-outstanding principal amount of all
outstanding innovation loan guarantees made pursuant to section
166.15 of the Revised Code or fifty per cent of the principal
amount of the largest outstanding guarantee made pursuant to
section 166.15 of the Revised Code.
(K) "Innovation property" includes property and also includes
software, inventory, licenses, contract rights, goodwill,
intellectual property, including without limitation, patents,
patent applications, trademarks and service marks, and trade
secrets, and other tangible and intangible property, and any
rights and interests in or connected to the foregoing.
(L) "Loan guarantee reserve requirement" means, at any time,
with respect to loan guarantees made under section 166.06 of the
Revised Code, a balance in the loan guarantee fund equal to the
greater of twenty per cent of the then-outstanding principal
amount of all outstanding guarantees made pursuant to section
166.06 of the Revised Code or fifty per cent of the principal
amount of the largest outstanding guarantee made pursuant to
section 166.06 of the Revised Code.
(M) "Person" means any individual, firm, partnership,
association, corporation, or governmental agency, and any
combination thereof.
(N) "Project facilities" means buildings, structures, and
other improvements, and equipment and other property, excluding
small tools, supplies, and inventory, and any one, part of, or
combination of the above, comprising all or part of, or serving or
being incidental to, an eligible project, an eligible innovation
project, an eligible research and development project, an eligible
advanced energy project, or an eligible logistics and distribution
project, including, but not limited to, public capital
improvements.
(O) "Property" means real and personal property and interests
therein.
(P) "Public capital improvements" means capital improvements
or facilities that any governmental agency has authority to
acquire, pay the costs of, own, maintain, or operate, or to
contract with other persons to have the same done, including, but
not limited to, highways, roads, streets, water and sewer
facilities, railroad and other transportation facilities, and air
and water pollution control and solid waste disposal facilities.
For purposes of this division, "air pollution control facilities"
includes, without limitation, solar, geothermal, biofuel, biomass,
wind, hydro, wave, and other advanced energy projects as defined
in section 3706.25 of the Revised Code.
(Q) "Research and development financial assistance" means
inducements under section 166.17 of the Revised Code, research and
development loans under section 166.21 of the Revised Code, and
research and development tax credits under sections 5733.352 and
5747.331 of the Revised Code.
(R) "Targeted innovation industry sectors" means industry
sectors involving the production or use of advanced materials,
instruments, controls and electronics, power and propulsion,
biosciences, and information technology, or such other sectors as
may be designated by the director of development services.
(S) "Voluntary action" means a voluntary action, as defined
in section 3746.01 of the Revised Code, that is conducted under
the voluntary action program established in Chapter 3746. of the
Revised Code.
(T) "Project financing obligations" means obligations issued
pursuant to section 166.08 of the Revised Code other than
obligations for which the bond proceedings provide that bond
service charges shall be paid from receipts of the state
representing gross profit on the sale of spirituous liquor as
referred to in division (B)(4) of section 4310.10 of the Revised
Code.
(U) "Regional economic development entity" means an entity
that is under contract with the director of development to
administer a loan program under this chapter in a particular area
of this state.
(V) "Advanced energy research and development fund" means the
advanced energy research and development fund created in section
3706.27 of the Revised Code.
(W) "Advanced energy research and development taxable fund"
means the advanced energy research and development taxable fund
created in section 3706.27 of the Revised Code.
(X) "Eligible advanced energy project" means an eligible
project that is an "advanced energy project" as defined in section
3706.25 of the Revised Code.
(Y) "Eligible logistics and distribution project" means an
eligible project, including project facilities, to be acquired,
established, expanded, remodeled, rehabilitated, or modernized for
transportation logistics and distribution infrastructure purposes.
As used in this division, "transportation logistics and
distribution infrastructure purposes" means promoting, providing
for, and enabling improvements to the ground, air, and water
transportation infrastructure comprising the transportation system
in this state, including, without limitation, highways, streets,
roads, bridges, railroads carrying freight, and air and water
ports and port facilities, and all related supporting facilities.
(Z) "Department of development" means the development
services agency and "director of development" means the director
of development services.
Sec. 166.04. (A) Prior to entering into each agreement to
provide assistance under sections 166.02, 166.06, and 166.07 of
the Revised Code, the director of development services shall
determine whether the assistance will conform to the requirements
of sections 166.01 to 166.11 of the Revised Code. Such
determination, and the facts upon which it is based, shall be set
forth, where required, by the director in submissions made to the
controlling board for purposes of section 166.03 and, unless
provision of the assistance has been recommended to the director
by a regional economic development entity, to the development
financing advisory council under section 166.05 when the director
seeks a release of moneys under section 166.02 of the Revised
Code. An agreement to provide assistance under sections 166.02,
166.06, and 166.07 of the Revised Code shall set forth such
determination, which shall be conclusive for purposes of the
validity and enforceability of such agreement and any loan
guarantees, loans, or other agreements entered into pursuant to
such agreement to provide assistance.
(B) Whenever a person applies for financial assistance under
sections 166.02, 166.06, and 166.07 of the Revised Code and the
project for which assistance is requested is to relocate
facilities that are currently being operated by the person and
that are located in another county, municipal corporation, or
township, the director shall provide written notification to the
appropriate local governmental bodies and state officials. The
notification shall contain the following information:
(1) The name of the person applying for financial assistance;
(2) The county, and the municipal corporation or township, in
which the project for which assistance is requested is located;
and
(3) The county, and the municipal corporation or township, in
which the facility to be replaced is located.
The director shall provide the written notification to the
appropriate local governmental bodies and state officials so that
they receive the notification at least five days before the
development financing advisory council meeting at which the
council considers the request for financial assistance pursuant to
section 166.05 of the Revised Code.
(C) As used in division (B) of this section:
(1) "Appropriate local governmental bodies" means:
(a) The boards of county commissioners or legislative
authorities of the county in which the project for which
assistance is requested is located and of the county in which the
facility to be replaced is located;
(b) The legislative authority of the municipal corporation or
the board of township trustees of the township in which the
project for which assistance is requested is located; and
(c) The legislative authority of the municipal corporation or
the board of township trustees of the township in which the
facility to be replaced is located.
(2) "State officials" means:
(a) The state representative and state senator in whose
districts the project for which assistance is requested is
located;
(b) The state representative and state senator in whose
districts the facility to be replaced is located.
Sec. 166.05. (A) In determining the projects to be assisted
and the nature, amount, and terms of assistance to be provided for
an eligible project under sections 166.02, 166.06, and 166.07 of
the Revised Code:
(1) Except as otherwise provided in division (A)(3) of this
section, the The director of development services shall take into
consideration all of the following:
(a) The number of jobs to be created or preserved, directly
or indirectly;
(b) Payrolls, and the taxes generated, at both state and
local levels, by the eligible project and by the employment
created or preserved by the eligible project;
(c) The size, nature, and cost of the eligible project,
including the prospect of the project for providing long-term jobs
in enterprises consistent with the changing economics of the state
and the nation;
(d) The needs, and degree of needs, of the area in which the
eligible project is to be located;
(e) The needs of any private sector enterprise to be
assisted;
(f) The competitive effect of the assistance on other
enterprises providing jobs for people of the state;
(g) The amount and kind of assistance, if any, to be provided
to the private sector enterprise by other governmental agencies
through tax exemption or abatement, financing assistance with
industrial development bonds, and otherwise, with respect to the
eligible project;
(h) The impact of the eligible project and its operations on
local government services, including school services, and on
public facilities;
(i) The effect of the assistance on the loss of or damage to
or destruction of prime farmland, or the removal from agricultural
production of prime farmland. As used in this section, "prime
farmland" means agricultural land that meets the criteria for this
classification as defined by the United States soil conservation
service.
(j) The length of time the operator of the project has been
operating facilities within the state.
(2) The benefits to the local area, including taxes, jobs,
and reduced unemployment and reduced welfare costs, among others,
may be accorded value in the leasing or sales of project
facilities and in loan and guarantee arrangements.
(B) Prior to granting final approval of the assistance to be
provided, the director shall determine that the benefits to be
derived by the state and local area from the establishment or
development, and operation, of the eligible project will exceed
the cost of providing such assistance and, except as provided in
division (C)(2) of this section, shall submit to the
development
financing advisory council and to the controlling board a copy of
that determination including the basis for the determination.
(C)(1) Except as provided in division (C)(2) of this section,
prior to the submission provided for in division (B) of this
section to the controlling board, the director shall submit to the
development financing advisory council data pertinent to the
considerations set forth in division (A) of this section, the
terms of the proposed assistance, and such other relevant
information as the development financing advisory council may
request.
(2) The director is not required to submit any determination,
data, terms, or other application materials or information to the
development financing advisory council when provision of the
assistance has been recommended to the director by a regional
economic development entity.
(D) The development financing advisory council, on the basis
of such data, shall make recommendations as to the appropriateness
of the assistance to be provided. The recommendations may be
revised to reflect any changes in the proposed assistance as the
director may submit to the council. The recommendations, as
amended, of the council as to the appropriateness of the proposed
assistance shall be submitted to the controlling board.
(E) Financial statements and other data submitted to the
director of development, the development financing advisory
council, services or the controlling board by any private sector
person in connection with financial assistance under sections
166.02, 166.06, and 166.07 of the Revised Code, or any information
taken from such statements or data for any purpose, shall not be
open to public inspection. The development financing advisory
council in considering confidential information in connection with
financial assistance under sections 166.02, 166.06, and 166.07 of
the Revised Code may, only for consideration of the confidential
information referred to, and in the manner provided in division
(E) of section 121.22 of the Revised Code, close the meeting
during such consideration.
Sec. 166.11. (A) The aggregate principal amount of
debt
service payable in any calendar year on project financing
obligations that may be issued under section 166.08 of the Revised
Code is three hundred, exclusive of make-whole call redemptions or
other optional prepayments, shall not exceed fifty million
dollars, plus the principal amount of such project financing
obligations retired by payments. The aggregate principal amount of
obligations, exclusive of project financing obligations, that may
be issued under section 166.08 of the Revised Code is six hundred
thirty million dollars, plus the principal amount of any such
obligations retired by payment, the amounts held or obligations
pledged for the payment of the principal amount of any such
obligations outstanding, amounts in special funds held as reserves
to meet bond service charges, and amounts of obligations issued to
provide moneys required to meet payments from the loan guarantee
fund created in section 166.06 of the Revised Code and the
innovation Ohio loan guarantee fund created in section 166.15 of
the Revised Code. Of that six hundred thirty million dollars, not
more than eighty-four million principal amount of obligations may
be issued for eligible advanced energy projects and not more than
one hundred million principal amount of obligations may be issued
for eligible logistics and distribution projects. The terms of the
obligations issued under section 166.08 of the Revised Code, other
than obligations issued to meet guarantees that cannot be
satisfied from amounts then held in the loan guarantee fund or the
innovation Ohio loan guarantee fund, shall be such that the
aggregate amount of moneys used from profit from the sale of
spirituous liquor, and not from other sources, in any fiscal year
shall not exceed sixty-three million dollars. For purposes of the
preceding sentence, "other sources" include the annual investment
income on special funds to the extent it will be available for
payment of any bond service charges in lieu of use of profit from
the sale of spirituous liquor, and shall be estimated on the basis
of the expected funding of those special funds and assumed
investment earnings thereon at a rate equal to the weighted
average yield on investments of those special funds determined as
of any date within sixty days immediately preceding the date of
issuance of the bonds in respect of which the determination is
being made. Amounts received in any fiscal year under section 6341
of the Internal Revenue Code, 26 U.S.C. 6341, shall not be
included when determining the sixty-three million dollar limit.
The determinations required by this division shall be made by the
treasurer of state at the time of issuance of an issue of
obligations and shall be conclusive for purposes of such issue of
obligations from and after their issuance and delivery.
(B) The aggregate amount of the guaranteed portion of the
unpaid principal of loans guaranteed under sections 166.06 and
166.15 of the Revised Code and the unpaid principal of loans made
under sections 166.07, 166.16, and 166.21 of the Revised Code may
not at any time exceed eight hundred million dollars. Of that
eight hundred million dollars, the aggregate amount of the
guaranteed portion of the unpaid principal of loans guaranteed
under sections 166.06 and 166.15 of the Revised Code shall not at
any time exceed two hundred million dollars. However, the
limitations established under this division do not apply to loans
made with proceeds from the issuance and sale of project financing
obligations.
Sec. 166.13. (A) Prior to entering into each agreement to
provide innovation financial assistance under sections 166.12,
166.15, and 166.16 of the Revised Code, the director of
development services shall determine whether the assistance will
conform to the requirements of sections 166.12 to 166.16 of the
Revised Code. Such determination, and the facts upon which it is
based, shall be set forth by the director in submissions made to
the controlling board for purposes of section 166.16 of the
Revised Code and to the development financing advisory council
under section 166.14 when the director seeks a release of moneys
under section 166.12 of the Revised Code. An agreement to provide
assistance under sections 166.12, 166.15, and 166.16 of the
Revised Code shall set forth the determination, which shall be
conclusive for purposes of the validity and enforceability of the
agreement and any innovation loan guarantees, innovation loans, or
other agreements entered into pursuant to the agreement to provide
innovation financial assistance.
(B) Whenever a person applies for innovation financial
assistance under sections 166.12, 166.15, and 166.16 of the
Revised Code and the eligible innovation project for which
innovation financial assistance is requested is to relocate an
eligible innovation project that is currently being operated by
the person and that is located in another county, municipal
corporation, or township, the director shall provide written
notification to the appropriate local governmental bodies and
state officials. The notification shall contain the following
information:
(1) The name of the person applying for innovation financial
assistance;
(2) The county, and the municipal corporation or township, in
which the eligible innovation project for which innovation
financial assistance is requested is located; and
(3) The county, and the municipal corporation or township, in
which the eligible innovation project to be replaced is located.
The director shall provide the written notification to the
appropriate local governmental bodies and state officials so that
they receive the notification at least five days before the
development financing advisory council meeting at which the
council considers the request for innovation financial assistance
pursuant to sections 166.12, 166.15, and 166.16 of the Revised
Code.
(C) As used in division (B) of this section:
(1) "Appropriate local governmental bodies" means:
(a) The boards of county commissioners or legislative
authorities of the county in which the project for which
innovation financial assistance is requested is located and of the
county in which the eligible innovation project to be replaced is
located;
(b) The legislative authority of the municipal corporation or
the board of township trustees of the township in which the
eligible innovation project for which innovation financial
assistance is requested is located; and
(c) The legislative authority of the municipal corporation or
the board of township trustees of the township in which the
eligible innovation project to be replaced is located.
(2) "State officials" means:
(a) The state representative and state senator in whose
districts the project for which innovation financial assistance is
requested is located;
(b) The state representative and state senator in whose
districts the innovation project to be replaced is located.
Sec. 166.14. (A) In determining the eligible innovation
projects to be assisted and the nature, amount, and terms of
innovation financial assistance to be provided for an eligible
innovation project under sections 166.12 to 166.16 of the Revised
Code:
(1) The director of development services shall take into
consideration all of the following:
(a) The number of jobs to be created or preserved by the
eligible innovation project, directly or indirectly;
(b) Payrolls, and the taxes generated, at both state and
local levels, by or in connection with the eligible innovation
project and by the employment created or preserved by or in
connection with the eligible innovation project;
(c) The size, nature, and cost of the eligible innovation
project, including the prospect of the eligible innovation project
for providing long-term jobs in enterprises consistent with the
changing economics of the state and the nation;
(d) The needs of any private sector enterprise to be
assisted;
(e) The amount and kind of assistance, if any, to be provided
to the private sector enterprise by other governmental agencies
through tax exemption or abatement, financing assistance with
industrial development bonds, and otherwise, with respect to the
eligible innovation project or with respect to any providers of
innovation property to be included as part of the eligible
innovation project;
(f) The likelihood of the successful implementation of the
proposed eligible innovation project;
(g) Whether the eligible innovation project involves the use
of technology in a targeted innovation industry sector.
(2) The benefits to the local area, including taxes, jobs,
and reduced unemployment and reduced welfare costs, among others,
may be accorded value in the leasing or sales of innovation
project facilities and in loan and guarantee arrangements.
(3) In making determinations under division (A)(1) of this
section, the director may consider the effect of an eligible
innovation project upon any entity engaged to provide innovation
property to be acquired, leased, or licensed in connection with
such assistance.
(B) The director shall submit to the development financing
advisory council data pertinent to the considerations set forth in
division (A) of this section, the terms of the proposed innovation
financial assistance, and such other relevant information as the
council may request.
(C) The development financing advisory council, on the basis
of such data, shall make recommendations as to the appropriateness
of the innovation financial assistance to be provided. The
recommendations may be revised to reflect any changes in the
proposed innovation financial assistance as the director may
submit to the council. The recommendations, as amended, of the
council as to the appropriateness of the proposed innovation
financial assistance shall be submitted to the controlling board.
(D) Financial statements and other data submitted to the
director of development, the development financing advisory
council, services or the controlling board by any private sector
person in connection with innovation financial assistance under
sections 166.12, 166.15, and 166.16 of the Revised Code, or any
information taken from such statements or data for any purpose,
shall not be open to public inspection. The development financing
advisory council in considering confidential information in
connection with innovation financial assistance under this chapter
may, only for consideration of the confidential information
referred to, and in the manner provided in division (E) of section
121.22 of the Revised Code, close the meeting during such
consideration.
Sec. 166.18. (A) Prior to entering into each agreement to
provide research and development financial assistance, the
director of development services shall determine whether the
assistance will conform to the requirements of sections 166.17 to
166.21, 5733.352, and 5747.331 of the Revised Code. Such
determination, and the facts upon which it is based, shall be set
forth by the director in submissions made to the controlling board
for purposes of section 166.17 of the Revised Code and to the
development financing advisory council under section 166.19 when
the director seeks a release of moneys under section 166.17 of the
Revised Code. An agreement to provide research and development
financial assistance under section 166.17 or 166.21 of the Revised
Code shall set forth the determination, which shall be conclusive
for purposes of the validity and enforceability of the agreement,
and any loans or other agreements entered into pursuant to the
agreement, to provide research and development financial
assistance.
(B) Whenever a person applies for research and development
financial assistance, and the eligible research and development
project for which that assistance is requested is to relocate an
eligible research and development project that is currently being
operated by the person and that is located in another county,
municipal corporation, or township within the state, the director
shall provide written notification to the appropriate local
governmental bodies and state officials. The notification shall
state all of the following:
(1) The name of the person applying for research and
development financial assistance;
(2) The county, and the municipal corporation or township, in
which the project for which research and development financial
assistance is requested will be located;
(3) The county, and the municipal corporation or township, in
which the eligible research and development project is located at
the time such financial assistance is requested.
The director shall provide the written notification to the
appropriate local governmental bodies and state officials so that
they receive the notification at least five days before the
development financing advisory council meeting at which the
council considers the request for research and development
financial assistance.
(C) As used in division (B) of this section:
(1) "Appropriate local governmental bodies" means all of the
following:
(a) The board of county commissioners of or legislative
authorities of special districts in the county in which the
eligible research and development project for which research and
development financial assistance is requested is located and of
the county in which the project will be located;
(b) The legislative authority of the municipal corporation or
the board of township trustees of the township in which the
eligible research and development project for which research and
development financial assistance is requested is located and of
the municipal corporation or township in which the project will be
located.
(2) "State officials" means both of the following:
(a) The state representative and state senator in whose
district the eligible research and development project for which
research and development financial assistance is requested is
located;
(b) The state representative and state senator in whose
district the eligible research and development project will be
located.
Sec. 166.19. (A)(1) In determining the eligible research and
development projects to be assisted and the nature, amount, and
terms of the research and development financial assistance to be
provided, the director of development services shall consider all
of the following:
(a) The number of jobs to be created or preserved, directly
or indirectly, by or in connection with the eligible research and
development project;
(b) Payrolls, and the taxes generated at both state and local
levels, by the eligible research and development project and by
the employment created or preserved by or in connection with the
project;
(c) The size, nature, and cost of the eligible research and
development project;
(d) The likelihood that the eligible research and development
project will create long-term jobs in enterprises consistent with
the changing economy of the state and nation;
(e) The needs of any private sector enterprise to be
assisted, taking into consideration the amount and kind of
assistance, if any, to be provided to the private sector
enterprise by other governmental agencies through tax exemption or
abatement, financing assistance with industrial development bonds,
and otherwise, with respect to the eligible research and
development project or with respect to any providers of research
and development property to be included as part of the project;
(f) The likelihood that the eligible research and development
project will be successfully implemented.
(2) The director may consider the benefits to the local area,
including taxes, jobs, and reduced unemployment and reduced
welfare costs, in the leasing or sale of eligible research and
development project facilities and in loan arrangements.
(3) The director may consider the effect of an eligible
research and development project upon any entity engaged to
provide research and development property to be acquired, leased,
or licensed in connection with research and development financial
assistance.
(B) The director shall submit to the development financing
advisory council data pertinent to the considerations set forth in
division (A) of this section, the terms of the proposed research
and development assistance, and such other relevant information as
the council may request.
(C) The development financing advisory council, on the basis
of the data submitted under division (B) of this section, shall
make recommendations as to the appropriateness of the research and
development financial assistance to be provided. The
recommendations may be revised to reflect any changes in the
proposed research and development financial assistance that the
director may submit to the council. The recommendations of the
council as to the appropriateness of the proposed research and
development financial assistance shall be submitted to the
controlling board.
(D) Financial statements and other data submitted to the
director of development, the development financing advisory
council, services or the controlling board by any private sector
person in connection with research and development financial
assistance, or any information taken from such statements or data
for any purpose, shall not be open to public inspection. The
development financing advisory council, in considering
confidential information in connection with research and
development financial assistance may, only for consideration of
the confidential information referred to and in the manner
provided in division (E) of section 121.22 of the Revised Code,
close the meeting during such consideration.
Sec. 166.25. (A) The director of development services, with
the approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend money in the
logistics and distribution infrastructure fund and the logistics
and distribution infrastructure taxable bond fund to persons for
the purpose of paying allowable costs of eligible logistics and
distribution projects.
(B) In determining the eligible logistics and distribution
projects to be assisted and the nature, amount, and terms of
assistance to be provided for an eligible logistics and
distribution project, the director shall consult with appropriate
governmental agencies, including the department of transportation
and the Ohio rail development commission.
(C)(1) The director shall submit to the development financing
advisory council the terms of the proposed assistance to be
provided for an eligible logistics and distribution project and
such other relevant information as the council may request.
(2) The council, on the basis of such information, shall make
recommendations as to the appropriateness of the assistance to be
provided. The recommendations may be revised to reflect any
changes in the proposed assistance the director may submit to the
council.
(3) The director shall submit the terms of the proposed
assistance to be provided, along with the recommendations, as
amended, of the council as to the appropriateness of the proposed
assistance, to the controlling board.
(D) Any loan made pursuant to this section shall be evidenced
by a loan agreement, which shall contain such terms as the
director determines necessary or appropriate, including
performance measures and reporting requirements. The director may
take actions necessary or appropriate to collect or otherwise deal
with any loan made under this section, including requiring a loan
recipient to repay the amount of the loan plus interest at a rate
of three per cent above the federal short term interest rate or
any other rate determined by the director.
Sec. 166.30. (A) The Ohio air quality development authority,
with the approval of the controlling board and subject to sections
3706.25 to 3706.30 of the Revised Code, may provide grants from
money in the advanced energy research and development fund and may
lend money in the advanced energy research and development taxable
fund to persons for the purposes of paying allowable costs of
eligible advanced energy projects.
(B) In determining the eligible advanced energy projects to
be assisted and the nature, amount, and terms of assistance to be
provided for an eligible advanced energy project, the authority
shall consult with appropriate governmental agencies.
(C)(1) The authority shall submit to the development
financing advisory council the terms of the proposed assistance to
be provided for an eligible advanced energy project and such other
relevant information as the council may request.
(2) The council, on the basis of such information, shall make
recommendations as to the appropriateness of the assistance to be
provided. The recommendations may be revised to reflect any
changes in the proposed assistance the authority may submit to the
council.
(3) The authority shall submit the terms of the proposed
assistance to be provided, along with the recommendations, as
amended, of the council as to the appropriateness of the proposed
assistance, to the controlling board.
(D) Any grant or loan made pursuant to this section shall be
evidenced by an agreement, which shall contain such terms as the
authority determines necessary or appropriate, including
performance measures and reporting requirements. The authority may
take actions necessary or appropriate to collect or otherwise deal
with any assistance provided under this section, including
requiring a loan or grant recipient to repay the amount of the
loan or grant plus interest at a rate of three per cent above the
federal short term interest rate or any other rate determined by
the authority.
Sec. 174.01. As used in this chapter:
(A) "Financial assistance" means grants, loans, loan
guarantees, an equity position in a project, or loan subsidies.
(B) "Grant" means funding the department of development
services agency or the Ohio housing finance agency provides for
which the department or the relevant agency does not require
repayment.
(C) "Housing" means housing for owner-occupancy and
multifamily rental housing.
(D) "Housing for owner-occupancy" means housing that is
intended for occupancy by an owner as a principal residence.
"Housing for owner-occupancy" may be any type of structure and may
be owned in any type of ownership.
(E) "Housing trust fund" means the low- and moderate-income
housing trust fund created and administered pursuant to Chapter
174. of the Revised Code.
(F) "Lending institution" means any financial institution
qualified to conduct business in this state, a subsidiary
corporation that is wholly owned by a financial institution
qualified to conduct business in this state, and a mortgage lender
whose regular business is originating, servicing, or brokering
real estate loans and who is qualified to do business in this
state.
(G) "Loan" means any extension of credit or other form of
financing or indebtedness directly or indirectly to a borrower
with the expectation that it will be repaid in accordance with the
terms of the underlying loan agreement or other pertinent
document. "Loan" includes financing extended to lending
institutions and indebtedness purchased from lending institutions.
(H) "Loan guarantee" means any agreement in favor of a
lending institution or other lender in which the credit and
resources of the housing trust fund are pledged to secure the
payment or collection of financing extended to a borrower for the
acquisition, construction, improvement, rehabilitation or
preservation of housing, or to refinance any financing previously
extended for those purposes by any lender.
(I) "Loan subsidy" means any deposit of funds into a lending
institution with the authorization or direction that the income or
revenues the deposit earns, or could have earned at competitive
rates, be applied directly or indirectly to the benefit of housing
assistance or financial assistance.
(J) "Low- and moderate-income persons" means individuals and
families who qualify as low- and moderate-income persons pursuant
to guidelines the department of development services agency
establishes.
(K) "Multifamily rental housing" means multiple unit housing
intended for rental occupancy.
(L) "Nonprofit organization" means a nonprofit organization
in good standing and qualified to conduct business in this state
including any corporation whose members are members of a
metropolitan housing authority.
(M) "Department of development" means the development
services agency and "director of development" means the director
of development services.
Sec. 184.01. (A) There is hereby created the third frontier
commission in the department of development services agency. The
purpose of the commission is to coordinate and administer science
and technology programs to promote the welfare of the people of
the state and to maximize the economic growth of the state through
expansion of both of the following:
(1) The state's high technology research and development
capabilities;
(2) The state's product and process innovation and
commercialization.
(B)(1) The commission shall consist of nine eleven members:
the director of development services, the chancellor of the Ohio
board of regents, the governor's science and technology advisor,
the chief investment officer of the nonprofit corporation formed
under section 187.01 of the Revised Code, and six seven persons
appointed by the governor with the advice and consent of the
senate.
(2) Of the six seven persons appointed by the governor, one
shall represent the central region, which is composed of the
counties of Delaware, Fairfield, Fayette, Franklin, Hocking, Knox,
Licking, Logan, Madison, Marion, Morrow, Perry, Pickaway, Ross,
and Union; one shall represent the west central region, which is
composed of the counties of Champaign, Clark, Darke, Greene,
Miami, Montgomery, Preble, and Shelby; one shall represent the
northeast region, which is composed of the counties of Ashland,
Ashtabula, Carroll, Crawford, Columbiana, Cuyahoga, Erie, Geauga,
Holmes, Huron, Lake, Lorain, Mahoning, Medina, Portage, Richland,
Stark, Summit, Trumbull, Tuscarawas, and Wayne; one shall
represent the northwest region, which is composed of the counties
of Allen, Auglaize, Defiance, Fulton, Hancock, Hardin, Henry,
Lucas, Mercer, Ottawa, Paulding, Putnam, Sandusky, Seneca, Van
Wert, Williams, Wood, and Wyandot; one shall represent the
southeast region, which shall represent the counties of Adams,
Athens, Belmont, Coshocton, Gallia, Guernsey, Harrison, Jackson,
Jefferson, Lawrence, Meigs, Monroe, Morgan, Muskingum, Noble,
Pike, Scioto, Vinton, and Washington; and one shall represent the
southwest region, which is composed of the counties of Butler,
Brown, Clermont, Clinton, Hamilton, Highland, and Warren; and one
shall represent the public at large. Of the initial appointments,
two shall be for one year, two shall be for two years, and two
shall be for three years as assigned by the governor. Thereafter,
appointments shall be for three-year terms. Members may be
reappointed and vacancies shall be filled in the same manner as
appointments. A person must have a background in business or
research in order to be eligible for appointment to the
commission.
(3) The governor shall select a chairperson from among the
members, who shall serve in that role at the pleasure of the
governor. Sections 101.82 to 101.87 of the Revised Code do not
apply to the commission.
(C) The commission shall meet at least once during each
quarter of the calendar year or at the call of the chairperson. A
majority of all members of the commission constitutes a quorum,
and no action shall be taken without the concurrence of a majority
of the members.
(D) The commission shall administer any money that may be
appropriated to it by the general assembly. The commission may use
such money for research and commercialization and for any other
purposes that may be designated by the commission.
(E) The department of development services agency shall
provide office space and facilities for the commission.
Administrative costs associated with the operation of the
commission or with any program or activity administered by the
commission shall be paid from amounts appropriated to the
commission or to the department of development agency for such
purposes.
(F) The attorney general shall serve as the legal
representative for the commission and may appoint other counsel as
necessary for that purpose in accordance with section 109.07 of
the Revised Code.
(G) Members of the commission shall serve without
compensation, but shall receive their reasonable and necessary
expenses incurred in the conduct of commission business.
(H) Members of the commission shall file financial disclosure
statements described in division (B) of section 102.02 of the
Revised Code.
Sec. 184.011. As used in this chapter, "department of
development" means the development services agency and "director
of development" means the director of development services.
Sec. 187.01. As used in this chapter, "JobsOhio" means the
nonprofit corporation formed under this section, and includes any
subsidiary of that corporation. In any section of law that refers
to the nonprofit corporation formed under this section, reference
to the corporation includes reference to any such subsidiary
unless otherwise specified or clearly appearing from the context.
The governor is hereby authorized to form a nonprofit
corporation, to be named "JobsOhio," with the purposes of
promoting economic development, job creation, job retention, job
training, and the recruitment of business to this state. Except as
otherwise provided in this chapter, the corporation shall be
organized and operated in accordance with Chapter 1702. of the
Revised Code. The governor shall sign and file articles of
incorporation for the corporation with the secretary of state. The
legal existence of the corporation shall begin upon the filing of
the articles.
In addition to meeting the requirements for articles of
incorporation in Chapter 1702. of the Revised Code, the articles
of incorporation for the nonprofit corporation shall set forth the
following:
(A) The designation of the name of the corporation as
JobsOhio;
(B) The creation of a board of directors consisting of nine
directors, to be appointed by the governor, who satisfy the
qualifications prescribed by section 187.02 of the Revised Code;
(C) A requirement that the governor make initial appointments
to the board within sixty days after the filing of the articles of
incorporation. Of the initial appointments made to the board, two
shall be for a term ending one year after the date the articles
were filed, two shall be for a term ending two years after the
date the articles were filed, and five shall be for a term ending
four years after the date the articles were filed. The articles
shall state that, following the initial appointments, the governor
shall appoint directors to terms of office of four years, with
each term of office ending on the same day of the same month as
did the term that it succeeds. If any director dies, resigns, or
the director's status changes such that any of the requirements of
division (C) of section 187.02 of the Revised Code are no longer
met, that director's seat on the board shall become immediately
vacant. The governor shall forthwith fill the vacancy by
appointment for the remainder of the term of office of the vacated
seat.
(D) A requirement that the governor appoint one director to
be chairperson of the board and procedures for electing directors
to serve as officers of the corporation and members of an
executive committee;
(E) A provision for the appointment of a chief investment
officer of the corporation by the recommendation of the board and
approval of the governor. The chief investment officer shall serve
at the pleasure of the board and shall have the power to execute
contracts, spend corporation funds, and hire employees on behalf
of the corporation. If the position of chief investment officer
becomes vacant for any reason, the vacancy shall be filled in the
same manner as provided in this division.
(F) Provisions requiring the board to do all of the
following:
(1) Adopt one or more resolutions providing for compensation
of the chief investment officer;
(2) Approve an employee compensation plan recommended by the
chief investment officer;
(3) Approve a contract with the director of development
services for the corporation to assist the director and the
department of development services agency with providing services
or otherwise carrying out the functions or duties of the
department agency, including the operation and management of
programs, offices, divisions, or boards, as may be determined by
the director of development services in consultation with the
governor;
(4) Approve all major contracts for services recommended by
the chief investment officer;
(5) Establish an annual strategic plan and standards of
measure to be used in evaluating the corporation's success in
executing the plan;
(6) Establish a conflicts of interest policy that, at a
minimum, complies with section 187.06 of the Revised Code;
(7) Hold a minimum of four board of directors meetings per
year at which a quorum of the board is physically present, and
such other meetings, at which directors' physical presence is not
required, as may be necessary. Meetings at which a quorum of the
board is required to be physically present are subject to
divisions (C), (D), and (E) of section 187.03 of the Revised Code.
(8) Establish a records retention policy and present the
policy, and any subsequent changes to the policy, at a meeting of
the board of directors at which a quorum of the board is required
to be physically present pursuant to division (F)(7) of this
section;
(9) Adopt standards of conduct for the directors.
(G) A statement that directors shall not receive any
compensation from the corporation, except that directors may be
reimbursed for actual and necessary expenses incurred in
connection with services performed for the corporation;
(H) A provision authorizing the board to amend provisions of
the corporation's articles of incorporation or regulations, except
provisions required by this chapter;
(I) Procedures by which the corporation would be dissolved
and by which all corporation rights and assets would be
distributed to the state or to another corporation organized under
this chapter. These procedures shall incorporate any separate
procedures subsequently set forth in this chapter for the
dissolution of the corporation. The articles shall state that no
dissolution shall take effect until the corporation has made
adequate provision for the payment of any outstanding bonds,
notes, or other obligations.
(J) A provision establishing an audit committee to be
comprised of directors. The articles shall require that the audit
committee hire an independent certified public accountant to
perform a financial audit of the corporation at least once every
year.
(K) A provision authorizing a majority of the disinterested
directors to remove a director for misconduct, as that term may be
defined in the articles or regulations of the corporation. The
removal of a director under this division creates a vacancy on the
board that the governor shall fill by appointment for the
remainder of the term of office of the vacated seat.
Sec. 187.03. (A) JobsOhio may perform such functions as
permitted and shall perform such duties as prescribed by law and
as set forth in any contract entered into under section 187.04 of
the Revised Code, but shall not be considered a state or public
department, agency, office, body, institution, or instrumentality
for purposes of section 1.60 or Chapter 102., 121., 125., or 149.
of the Revised Code. JobsOhio and its board of directors are not
subject to the following sections of Chapter 1702. of the Revised
Code: sections 1702.03, 1702.08, 1702.09, 1702.21, 1702.24,
1702.26, 1702.27, 1702.28, 1702.29, 1702.301, 1702.33, 1702.34,
1702.37, 1702.38, 1702.40 to 1702.52, 1702.521, 1702.54, 1702.57,
1702.58, 1702.59, 1702.60, 1702.80, and 1702.99. Nothing in this
division shall be construed to impair the powers and duties of the
Ohio ethics commission described in section 102.06 of the Revised
Code to investigate and enforce section 102.02 of the Revised Code
with regard to individuals required to file statements under
division (B)(2) of this section.
(B)(1) Directors and employees of JobsOhio are not employees
or officials of the state and, except as provided in division
(B)(2) of this section, are not subject to Chapter 102., 124.,
145., or 4117. of the Revised Code.
(2) The chief investment officer, any other officer or
employee with significant administrative, supervisory,
contracting, or investment authority, and any director of JobsOhio
shall file, with the Ohio ethics commission, a financial
disclosure statement pursuant to section 102.02 of the Revised
Code that includes, in place of the information required by
divisions (A)(2), (7), (8), and (9) of that section, the
information required by divisions (A) and (B) of section 102.022
of the Revised Code. The governor shall comply with all applicable
requirements of section 102.02 of the Revised Code.
(3) Actual or in-kind expenditures for the travel, meals, or
lodging of the governor or of any public official or employee
designated by the governor for the purpose of this division shall
not be considered a violation of section 102.03 of the Revised
Code if the expenditures are made by the corporation, or on behalf
of the corporation by any person, in connection with the
governor's performance of official duties related to JobsOhio. The
governor may designate any person, including a person who is a
public official or employee as defined in section 102.01 of the
Revised Code, for the purpose of this division if such
expenditures are made on behalf of the person in connection with
the governor's performance of official duties related to JobsOhio.
A public official or employee so designated by the governor shall
comply with all applicable requirements of section 102.02 of the
Revised Code.
At the times and frequency agreed to under division (B)(2)(b)
of section 187.04 of the Revised Code, beginning in 2012, the
corporation shall file with the department of development services
agency a written report of all such expenditures paid or incurred
during the preceding calendar year. The report shall state the
dollar value and purpose of each expenditure, the date of each
expenditure, the name of the person that paid or incurred each
expenditure, and the location, if any, where services or benefits
of an expenditure were received, provided that any such
information that may disclose proprietary information as defined
in division (C) of this section shall not be included in the
report.
(4) The prohibition applicable to former public officials or
employees in division (A)(1) of section 102.03 of the Revised Code
does not apply to any person appointed to be a director or hired
as an employee of JobsOhio.
(5) Notwithstanding division (A)(2) of section 145.01 of the
Revised Code, any person who is a former state employee shall no
longer be considered a public employee for purposes of Chapter
145. of the Revised Code upon commencement of employment with
JobsOhio.
(6) Any director, officer, or employee of JobsOhio may
request an advisory opinion from the Ohio ethics commission with
regard to questions concerning the provisions of sections 102.02
and 102.022 of the Revised Code to which the person is subject.
(C) Meetings of the board of directors at which a quorum of
the board is required to be physically present pursuant to
division (F) of section 187.01 of the Revised Code shall be open
to the public except, by a majority vote of the directors present
at the meeting, such a meeting may be closed to the public only
for one or more of the following purposes:
(1) To consider business strategy of the corporation;
(2) To consider proprietary information belonging to
potential applicants or potential recipients of business
recruitment, retention, or creation incentives. For the purposes
of this division, "proprietary information" means marketing plans,
specific business strategy, production techniques and trade
secrets, financial projections, or personal financial statements
of applicants or members of the applicants' immediate family,
including, but not limited to, tax records or other similar
information not open to the public inspection.
(3) To consider legal matters, including litigation, in which
the corporation is or may be involved;
(4) To consider personnel matters related to an individual
employee of the corporation.
(D) The board of directors shall establish a reasonable
method whereby any person may obtain the time and place of all
public meetings described in division (C) of this section. The
method shall provide that any person, upon request and payment of
a reasonable fee, may obtain reasonable advance notification of
all such meetings.
(E) The board of directors shall promptly prepare, file, and
maintain minutes of all public meetings described in division (C)
of this section.
(F) Not later than March 1, 2012, and the first day of March
of each year thereafter, the chief investment officer of JobsOhio
shall prepare and submit a report of the corporation's activities
for the preceding year to the governor, the speaker and minority
leader of the house of representatives, and the president and
minority leader of the senate. The annual report shall include the
following:
(1) An analysis of the state's economy;
(2) A description of the structure, operation, and financial
status of the corporation;
(3) A description of the corporation's strategy to improve
the state economy and the standards of measure used to evaluate
its progress;
(4) An evaluation of the performance of current strategies
and major initiatives;
(5) An analysis of any statutory or administrative barriers
to successful economic development, business recruitment, and job
growth in the state identified by JobsOhio during the preceding
year.
Sec. 187.04. (A) The director of development services, as
soon as practical after the effective date of this section
February 18, 2011, shall execute a contract with JobsOhio for the
corporation to assist the director and the department of
development services agency with providing services or otherwise
carrying out the functions or duties of the department agency,
including the operation and management of programs, offices,
divisions, or boards, as may be determined by the director in
consultation with the governor. The approval or disapproval of
awards involving public money shall remain functions of the
department
agency. All contracts for grants, loans, and tax
incentives
involving public money shall be between the department
agency and the recipient and shall be enforced by the department
agency. JobsOhio may not execute contracts obligating the
department
agency for loans, grants, tax credits, or incentive
awards recommended by JobsOhio to the
department agency. Prior to
execution, all contracts between the director and JobsOhio entered
into under this section that obligate the agency to pay JobsOhio
for services rendered are subject to controlling board approval.
The term of a an initial contract entered into under this
section shall not extend beyond June 30, 2013. Thereafter, the
director and JobsOhio may renew the contract for subsequent fiscal
biennia, but at no time shall a particular contract be effective
for longer than a fiscal biennium of the general assembly, but
may be renewed or amended by the parties.
JobsOhio's provision of services to the agency as described
in this section shall be pursuant to a contract entered into under
this section. If at any time the director determines that the
contract with JobsOhio may not be renewed for the subsequent
fiscal biennium, the director shall notify JobsOhio of the
director's decision not later than one hundred twenty days prior
to the end of the current fiscal biennium. If the director does
not provide such written notice to JobsOhio prior to one hundred
days before the end of the current fiscal biennium, the contract
shall be renewed upon such terms as the parties may agree, subject
to the requirements of this section.
(B) A contract entered into under this section shall include
all of the following:
(1) Terms assigning to the corporation the duties of advising
and assisting the director of development in the director's
evaluation of the department agency and the formulation of
recommendations under section 187.05 of the Revised Code;
(2) Terms designating records created or received by JobsOhio
that shall be made available to the public under the same
conditions as are public records under section 149.43 of the
Revised Code. Documents designated to be made available to the
public pursuant to the contract shall be kept on file with the
department of development agency.
Among records to be designated under this division shall be
the following:
(a) The corporation's federal income tax returns;
(b) The report of expenditures described in division (B)(3)
of section 187.03 of the Revised Code. The records shall be filed
with the department agency at such times and frequency as agreed
to by the corporation and the department agency, which shall not
be less frequently than quarterly.
(c) The annual total compensation paid to each officer and
employee of the corporation;
(d) A copy of the audit report for each financial audit of
the corporation performed by an independent certified public
accountant pursuant to division (J) of section 187.01 of the
Revised Code.
(e) Records of any fully executed incentive proposals, to be
filed annually;
(f) Records pertaining to the monitoring of commitments made
by incentive recipients, to be filed annually;
(g) A copy of the minutes of all public meetings described in
division (C) of section 187.03 of the Revised Code not otherwise
closed to the public.
(3) The following statement acknowledging that JobsOhio is
not acting as an agent of the state:
"JobsOhio shall have no power or authority to bind the state
or to assume or create an obligation or responsibility, expressed
or implied, on behalf of the state or in its name, nor shall
JobsOhio represent to any person that it has any such power or
authority, except as expressly provided in this contract."
(C) (1) Records created or received by JobsOhio are not
public records for the purposes of section 149.43 Chapter 149. of
the Revised Code, regardless of who may have custody of the
records, unless the record is designated to be available to the
public by the contract under division (B)(2) of this section.
(2) Records received by JobsOhio from any person or entity
that is not subject to section 149.43 of the Revised Code are not
public records for purposes of Chapter 149. of the Revised Code,
regardless of who may have custody of the records, unless the
record is designated to be available to the public by the contract
under division (B)(2) of this section.
(3) Records received by JobsOhio from a public office as
defined in section 149.011 of the Revised Code that are not public
records under section 149.43 of the Revised Code when in the
custody of the public office are not public records for the
purposes of section 149.43 of the Revised Code regardless of who
has custody of the records.
(D) Any contract executed under authority of this section
shall not negate, impair, or otherwise adversely affect the
obligation of this state to pay debt charges on securities
executed by the director of development or issued by the treasurer
of state, Ohio public facilities commission, or any other issuing
authority under Chapter 122., 151., 165., or 166. of the Revised
Code to fund economic development programs of the state, or to
abide by any pledge or covenant relating to the payment of those
debt charges made in any related proceedings. As used in this
division, "debt charges," "proceedings," and "securities" have the
same meanings as in section 133.01 of the Revised Code.
(E) Nothing in this section, other than the requirement of
controlling board approval, shall prohibit the department agency
from contracting with JobsOhio to perform any of the following
functions:
(1) Promoting and advocating for the state;
(2) Making recommendations to the department agency;
(3) Performing research for the department agency;
(4) Establishing and managing programs or offices on behalf
of the department agency, by contract;
(5) Negotiating on behalf of the state.
(F) Nothing in this section, other than the requirement of
controlling board approval, shall prohibit the department agency
from compensating JobsOhio from funds currently appropriated to
the
department agency to perform the functions described in
division (E) of this section.
Sec. 187.05. The director of development services, as soon
as practical after the effective date of this section February 18,
2011, shall, in consultation with the governor, evaluate all
powers, functions, and duties of the department development
services agency. Within six months after that effective date
February 18, 2011, the director shall submit a report to the
general assembly recommending statutory changes necessary to
improve the functioning and efficiency of the
department agency
and to transfer specified powers, functions, and duties of the
department agency to other existing agencies of the state or to
JobsOhio, or eliminate specified powers, functions, or duties. The
recommendations shall be submitted in writing to the speaker and
minority leader of the house of representatives and the president
and minority leader of the senate.
After submitting the report, the director, in consultation
with the governor, shall continue to evaluate the department
agency and make additional recommendations on such matters to the
general assembly.
Sec. 187.061. (A) Each officer and employee of JobsOhio
shall do all of the following:
(1) Sign an ethical conduct statement prescribed by the board
of directors of JobsOhio;
(2) Complete an annual course or program of study on ethics.
The course or program of study shall be reviewed and approved by
the board of directors.
(3) Comply with the gift policy prescribed by the board of
directors.
(B) Prior to the renewal of the contract between the director
of development services and JobsOhio as described in section
187.04 of the Revised Code, the board of directors shall submit to
the controlling board a comprehensive review of the ethics
policies and procedures that have been adopted by JobsOhio.
Sec. 929.03. (A)(1) No public entity with authority to levy
special assessments on real property shall collect an assessment
for purposes of sewer, water, or electrical service on real
property that is within an agricultural district as described in
division (A)(2) of this section without the permission of the
owner, except that any assessment may be collected on a lot
surrounding a dwelling or other structure not used in agricultural
production that does not exceed one acre or the minimum area
required by local zoning or subdivision rules, whichever is the
greater area.
(2) For purposes of division (A)(1) of this section, an
agricultural district is such a district that is established:
(a) In the case of counties, prior to the adoption of a
resolution of necessity by a board of county commissioners,
pursuant to section 6103.05 or 6117.06 of the Revised Code;
(b) In the case of municipal corporations, prior to whichever
of the following occurs first:
(i) The adoption of the resolution of necessity by the
municipal legislative authority, pursuant to section 727.12 or
729.02 of the Revised Code;
(ii) The service of notice on all or some of the owners to be
assessed pursuant to section 729.06 of the Revised Code;
(iii) The adoption of the resolution or ordinance by the
municipal legislative authority declaring the necessity for the
improvement, the costs of which are to be assessed under
procedures authorized by a municipal charter adopted pursuant to
Section 7 of Article XVIII, Ohio Constitution, or, if no such
ordinance or resolution is required under the charter, the service
of the first notice on all or some of the owners of lands to be
assessed, or the adoption of the first ordinance or resolution by
the municipal legislative authority pertaining to the assessment
proceedings under the charter.
(c) In the case of a regional water and sewer district
established pursuant to Chapter 6119. of the Revised Code, prior
to the adoption of a resolution of necessity by the board of
trustees of the district under section 6119.25 of the Revised
Code.
(B) For each special assessment levied by a public entity on
real property within an agricultural district for purposes of
sewer, water, or electrical service, the county auditor shall make
and maintain a list showing:
(1) The name of the owner of each lot, tract, or parcel of
land that is exempt from the collection of the special assessment
under this section;
(2) A description of the exempt land;
(3) The purpose of the special assessment;
(4) The amount of the uncollected assessment on the exempt
land.
In the case of a county project constructed under Chapter
6103. or 6117. of the Revised Code, the county auditor may use a
list provided for in those chapters in lieu of the list required
by division (B) of this section. The auditor shall also record in
the water works record required by section 6103.16 of the Revised
Code or the sewer improvement record required by section 6117.33
of the Revised Code those assessments not collected under this
section. The recording of the assessments does not permit the
collection of the assessments until such time as exempt lands are
withdrawn from agricultural districts or converted to
nonagricultural use.
(C) If at any time any of the owner's exempt land, other than
a lot sold or transferred to a son, daughter, brother, sister,
mother, or father for the purpose of constructing a dwelling in
which the relative will reside for at least three years, is
withdrawn from an agricultural district or if the owner of the
exempt land uses on that land the service for which the special
assessment was assessed, the public entity may collect the entire
uncollected assessment, except as otherwise provided in this
division, in addition to an amount equal to the rate of interest
that any bonds or notes issued for the project for which the
assessment was made did bear for the number of years the land was
exempted, not to exceed twenty-five or the number of years for
which the bonds or notes were issued, whichever is the lesser
number. The owner shall notify the county auditor of any
withdrawal from a district or use of the service within ninety
days following the withdrawal or use of the service. The charge
shall constitute a lien of the public entity upon the land and
shall continue until discharged. All liens shall be recorded in
the appropriate county recorder's office. Moneys collected as a
result of the charge shall be deposited in the appropriate fund of
the public entity that levied the special assessment.
If the owner of exempt land sells or transfers a lot to his
the owner's son, daughter, brother, sister, mother, or father for
the purpose of constructing a dwelling in which the relative will
reside for at least three years, and if the owner or the buyer of
the lot uses the service for which the special assessment was
assessed only to provide service to that lot, the owner of the lot
shall pay only that portion of the uncollected assessment and
interest that applies to the lot.
If at any time any part of an owner's exempt land is
appropriated, the owner shall pay only that portion of the
uncollected assessment and interest that applies to the
appropriated parcel of land.
In lieu of immediate payment of the uncollected assessment
and interest, the board of county commissioners, legislative
authority of a municipal corporation, or other governing board of
any other public entity may, upon the request of the owner,
establish an extended repayment schedule for the owner. If the
board, legislative authority, or other governing board establishes
such a schedule, it shall notify the county auditor of the
schedule.
(D) A board of county commissioners, legislative authority of
a municipal corporation, or other governing board of any other
public entity may apply to the water and sewer commission, created
by division (C) of section 1525.11 of the Revised Code, for an
advance of moneys from the water and sewer fund, created by
division (A) of section 1525.11 of the Revised Code, in an amount
equal to that portion of the costs of a water or sewer improvement
authorized by law that is to be financed by assessments whose
collection is prohibited under division (A) of this section. The
application for such an advance of moneys shall be made in the
manner prescribed by rules of the commission. Upon collection of
any assessment whose collection was prohibited under division (A)
of this section, the board of county commissioners, legislative
authority, or other governing board shall repay the commission the
amount of any moneys advanced by it in regard to the assessments.
Sec. 1551.01. As used in this chapter:
(A) "Governmental agency" means the United States government
or any department, agency, or instrumentality thereof; any
department, agency, or instrumentality of a state government; any
municipal corporation, county, township, board of education, or
other political subdivision or any other body corporate and
politic of a state; or any agency, commission, or authority
established under an interstate compact or agreement.
(B) "Energy resource development facility" means any energy
resource development, research, or conservation facility,
including pilot as well as demonstration facilities, and including
undivided or other interests therein, acquired or to be acquired,
or constructed or to be constructed under this chapter or Chapter
6121. or 6123. of the Revised Code, or acquired or to be acquired,
or constructed or to be constructed by a governmental agency or
person with all or a part of the cost thereof being paid from a
loan or grant under such chapters, including all buildings and
facilities that the director of development services determines
necessary for the operation of the facility, together with all
property, rights, easements, and interests that may be required
for the operation of the facility, which facilities may include:
(1) Any building, testing facility, testing device, or
support facilities which would provide experimental,
demonstration, or testing capabilities or services not otherwise
available in this state and which are necessary for the
accomplishment of the purposes of this chapter;
(2) Any method, process, structure, or equipment that is used
to store coal, oil, natural gas, fuel for nuclear reactors, or any
other form of energy;
(3) Any method, process, structure, or equipment that is used
to recover or convert coal, oil, natural gas, steam, or other form
of energy from property located within the state for the purpose
of supplying energy for utilization;
(4) Any method, process, structure, or equipment that is
designed to result in more efficient recovery, conversion, or
utilization of energy resources within the state, including any
scrap tire recovery facility for which a registration certificate
or permit has been issued under section 3734.78 of the Revised
Code;
(5) Any improvement that is designed to improve the thermal
efficiency of a building or structure or reduce the fuel or power
needed to heat, cool, light, ventilate, or provide hot water in a
building or structure;
(6) Any improvement designed to enable the substitution of
coal or alternate fuel, other than natural gas, for natural gas or
a petroleum fuel, or the conversion of coal to other fuels;
(7) Any improvement designed to enable the combustion of high
sulfur coal in compliance with air or water pollution control or
solid waste disposal laws, including, but not limited to, any
facility for processing coal to remove sulfur before combustion of
the coal, for fluidized bed combustion, or for removal of the
sulfur before the products of combustion are emitted or
discharged.
(C) "Cost" as applied to an energy resource development
facility means the cost of acquisition and construction, the cost
of acquisition of all land, rights-of-way, property rights,
easements, franchise rights, and interests required for such
acquisition and construction, the cost of demolishing or removing
any buildings or structures on land so acquired, including the
cost of acquiring any lands to which such buildings or structures
may be moved, the cost of acquiring or constructing and equipping
a principal office and sub-offices of the department of
development, the cost of diverting highways, interchange of
highways, access roads to private property, including the cost of
land or easements for such access roads, the cost of public
utility and common carrier relocation or duplication, the cost of
all machinery, furnishings, and equipment, financing charges,
interest prior to and during construction and for no more than
eighteen months after completion of construction, engineering,
expenses of research and development with respect to the facility,
legal expenses, plans, specifications, surveys, studies, estimates
of cost and revenues, working capital, other expenses necessary or
incident to determining the feasibility or practicability of
acquiring or constructing such facility, administrative expense,
and such other expense as may be necessary or incident to the
acquisition or construction of the facility, the financing of such
acquisition or construction, including the amount authorized in
the resolution of the Ohio water development authority providing
for the issuance of energy resource development revenue bonds to
be paid into any special funds from the proceeds of such bonds,
and the financing of the placing of such facility in operation.
Any obligation, cost, or expense incurred after August 26, 1975,
by any governmental agency or person for surveys, borings,
preparation of plans and specifications, and other engineering
services, or any other cost described above, in connection with
the acquisition or construction of a facility may be regarded as a
part of the cost of such facility and may be reimbursed out of the
proceeds of energy resource development revenue bonds.
(D) "Revenues" means all rentals and other charges received
by the Ohio water development authority for the use or services of
any energy resource development facility, any contract, gift, or
grant received with respect to any energy resource development
facility, and moneys received with respect to the lease, sublease,
sale, including installment sale or conditional sale, or other
disposition of an energy resource development facility, moneys
received in repayment of and for interest on any loans made by the
authority to a person or governmental agency, whether from the
United States or any department, administration, or agency
thereof, or otherwise, proceeds of energy resource development
revenue bonds to the extent that the use thereof for payment of
principal of, premium, if any, or interest on the bonds is
authorized by the authority, proceeds from any insurance,
condemnation, or guaranty pertaining to a facility or property
mortgaged to secure bonds or pertaining to the financing of a
facility, and income and profit from the investment of the
proceeds of energy resource development revenue bonds or of any
revenues.
(E) "Construction," unless the context indicates a different
meaning or intent, includes construction, reconstruction,
enlargement, improvement, or providing furnishings or equipment.
(F) "Energy resource development revenue bonds," unless the
context indicates a different meaning or intent, includes energy
resource development revenue bonds, energy resource development
revenue notes, and energy resource development revenue refunding
bonds.
(G) "Energy" means work or heat that is, or can be, produced
from any fuel or source whatsoever.
(H) "Energy audit" means any process by which energy usage or
costs of heating, cooling, lighting, and climate control in a
building or structure are determined.
(I) "Energy conservation" means preservation of energy
resources by efficient utilization, and reduction of waste.
(J) "Energy conservation measure" means any modification of a
building, structure, machine, appliance, vehicle, improvement, or
process in order to improve its efficiency of energy use or energy
costs.
(K) "Fuel" means petroleum, crude oil, petroleum product,
coal, natural gas, synthetic natural or artificial gas, nuclear,
or other substance used primarily for its energy content.
(L) "Net energy analysis" means the determination of the
amount of energy remaining after all energy outputs have been
subtracted from the energy inputs of a given system.
(M) "Department of development" means the development
services agency and "director of development" means the director
of development services.
Sec. 3735.01. As used in this chapter, "department of
development" means the development services agency and "director
of development" means the director of development services.
Sec. 3735.672. (A) On or before the thirty-first day of
March each year, a legislative authority that has entered into an
agreement with a party under section 3735.671 of the Revised Code
shall submit to the director of development services and the board
of education of each school district of which a municipal
corporation or township to which such an agreement applies is a
part a report on all such agreements in effect during the
preceding calendar year. The report shall include the following
information:
(1) The designation, assigned by the director of development
services, of each community reinvestment area within the municipal
corporation or county, and the total population of each area
according to the most recent data available;
(2) The number of agreements and the number of full-time
employees subject to those agreements within each area, each
according to the most recent data available and identified and
categorized by the appropriate standard industrial code, and the
rate of unemployment in the municipal corporation or county in
which the area is located for each year since the area was
certified;
(3) The number of agreements approved and executed during the
calendar year for which the report is submitted, the total number
of agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired
during the calendar year for which the report is submitted, and
the number of agreements scheduled to expire during the calendar
year in which the report is submitted. For each agreement that
expired during the calendar year for which the report is
submitted, the legislative authority shall include the amount of
taxes exempted under the agreement.
(4) The number of agreements receiving compliance reviews by
the tax incentive review council in the municipal corporation or
county during the calendar year for which the report is submitted,
including all of the following information:
(a) The number of agreements the terms of which the party has
complied with, indicating separately for each such agreement the
value of the real property exempted pursuant to the agreement and
a comparison of the stipulated and actual schedules for hiring new
employees, for retaining existing employees, and for the amount of
payroll of the party attributable to these employees;
(b) The number of agreements the terms of which a party has
failed to comply with, indicating separately for each such
agreement the value of the real and personal property exempted
pursuant to the agreement and a comparison of the stipulated and
actual schedules for hiring new employees, for retaining existing
employees, and for the amount of payroll of the enterprise
attributable to these employees;
(c) The number of agreements about which the tax incentive
review council made recommendations to the legislative authority,
and the number of such recommendations that have not been
followed;
(d) The number of agreements rescinded during the calendar
year for which the report is submitted.
(5) The number of parties subject to agreements that expanded
within each area, including the number of new employees hired and
existing employees retained by that party, and the number of new
parties subject to agreements that established within each area,
including the number of new employees hired by each party;
(6) For each agreement in effect during any part of the
preceding year, the number of employees employed by the party at
the property that is the subject of the agreement immediately
prior to formal approval of the agreement, the number of employees
employed by the party at that property on the thirty-first day of
December of the preceding year, the payroll of the party for the
preceding year, the amount of taxes paid on real property that was
exempted under the agreement, and the amount of such taxes that
were not paid because of the exemption.
(B) Upon the failure of a municipal corporation or county to
comply with division (A) of this section:
(1) Beginning on the first day of April of the calendar year
in which the municipal corporation or county fails to comply with
that division, the municipal corporation or county shall not enter
into any agreements under section 3735.671 of the Revised Code
until the municipal corporation or county has complied with
division (A) of this section.
(2) On the first day of each ensuing calendar month until the
municipal corporation or county complies with that division, the
director of development services shall either order the proper
county auditor to deduct from the next succeeding payment of taxes
to the municipal corporation or county under section 321.31,
321.32, 321.33, or 321.34 of the Revised Code an amount equal to
five hundred dollars for each calendar month the municipal
corporation or county fails to comply with that division, or order
the county auditor to deduct such an amount from the next
succeeding payment to the municipal corporation or county from the
undivided local government fund under section 5747.51 of the
Revised Code. At the time such a payment is made, the county
auditor shall comply with the director's order by issuing a
warrant, drawn on the fund from which such money would have been
paid, to the director of development services, who shall deposit
the warrant into the state community reinvestment area program
administration fund created in division (C) of this section.
(C) The director, by rule, shall establish the state's
application fee for applications submitted to a municipal
corporation or county to enter into an agreement under section
3735.671 of the Revised Code. In establishing the amount of the
fee, the director shall consider the state's cost of administering
the community reinvestment area program, including the cost of
reviewing the reports required under division (A) of this section.
The director may change the amount of the fee at such times and in
such increments as the director considers necessary. Any municipal
corporation or county that receives an application shall collect
the application fee and remit the fee for deposit in the state
treasury to the credit of the tax incentive programs operating
business assistance fund created in section 122.174 of the Revised
Code.
Sec. 3746.35. (A) Not later than September 1, 1996, and not
later than the first day of September of each subsequent year, the
director of environmental protection shall prepare and submit to
the chairpersons of the respective standing committees of the
senate and house of representatives primarily responsible for
considering environmental and taxation matters a report regarding
the voluntary action program established under this chapter and
rules adopted under it and the tax abatements granted pursuant to
sections 5709.87 and 5709.88 of the Revised Code for properties
where voluntary actions were conducted. Each annual report shall
include, without limitation, all of the following:
(1) Both of the following for each property for which a
covenant not to sue was issued under section 3746.12 of the
Revised Code during the preceding calendar year:
(a) The address of the property and name of the person who
undertook the voluntary action at the property;
(b) Whether the applicable standards governing the voluntary
action were the interim standards established in section 3746.07
of the Revised Code or the generic numerical clean-up standards
established in rules adopted under division (B)(1) of section
3746.04 of the Revised Code, were established through the
performance of a risk assessment pursuant to rules adopted under
division (B)(2) of section 3746.04 of the Revised Code, or were
set forth in a variance issued under section 3746.09 of the
Revised Code.
(2) All of the following for each property for which a
variance was issued under section 3746.09 of the Revised Code
during the preceding calendar year:
(a) The address of the property and the name of the person to
whom the variance was issued;
(b) A summary of the alternative standards and terms and
conditions of the variance and brief description of the
improvement in environmental conditions at the property that is
anticipated to result from compliance with the alternative
standards and terms and conditions set forth in the variance;
(c) A brief description of the economic benefits to the
person to whom the variance was issued and the community in which
the property is located that are anticipated to result from the
undertaking of the voluntary action in compliance with the
alternative standards and terms and conditions set forth in the
variance.
(3) The number of audits performed under section 3746.17 of
the Revised Code during the preceding calendar year and, in
connection with each of them, at least the following information:
(a) The address of the property in connection with which the
audit was performed and the name of the person who undertook the
voluntary action at the property;
(b) An indication as to whether the audit was a random audit
or was conducted in accordance with the priorities established in
rules adopted under divisions (A)(9)(a) to (f) of section 3746.04
of the Revised Code and, if the audit was conducted in accordance
with those priorities, an indication as to which of them resulted
in the selection of the voluntary action for an audit;
(c) A brief summary of the findings of the audit and any
action taken by the environmental protection agency as a result of
those findings.
(4) The number of covenants not to sue revoked during the
preceding calendar year through the operation of divisions
(A)(2)(c) and (B) of section 3746.12, division (B)(2) of section
3746.18, and division (B) of section 3746.19 of the Revised Code
and for each property for which a covenant was revoked, at least
both of the following:
(a) The address of the property affected by the revocation
and name of the person who undertook the voluntary action at the
property;
(b) The reason for the revocation.
(5) The amount of money credited to the voluntary action
administration fund created in section 3746.16 of the Revised Code
during the preceding fiscal year from the fees established in
divisions (D) and (H) of section 3746.07 and division (C) of
section 3746.13 of the Revised Code and from civil penalties
imposed under section 3746.22 of the Revised Code. The report
shall indicate the amount of money that arose from each of the
fees and from the civil penalties. The report also shall include
the amount of money expended from the fund during the preceding
fiscal year by program category, including, without limitation,
the amount expended for conducting audits under section 3746.17 of
the Revised Code during the preceding fiscal year.
(6) For each property that is receiving a tax abatement under
section 5709.87 of the Revised Code for the preceding tax year,
the amount of the valuation exempted from real property taxation
for that tax year under that section. In order to comply with
division (A)(6) of this section, the director shall include in the
annual report the report required to be provided to the director
by the director of development under division (B)(2) of this
section. The sole responsibility of the director of environmental
protection regarding the report provided to the director under
that division is to include it in the annual report prepared under
division (A) of this section.
(7) For each property that is receiving a tax abatement
pursuant to an agreement with a municipal corporation or county
entered into under section 5709.88 of the Revised Code, the amount
of the valuation exempted from real or personal property taxation.
In order to comply with division (A)(7) of this section, the
director shall include in the annual report the report required to
be provided to the director by the director of development under
division (C) of this section. The sole responsibility of the
director of environmental protection regarding the report provided
to the director under that division is to include it in the annual
report prepared under division (A) of this section.
(B)(1) Not later than March 31, 1996, the county auditor of
each county in which is located any property that is receiving a
tax abatement under section 5709.87 of the Revised Code shall
report to the director of development environmental protection for
each such property both of the following as applicable to tax year
1995:
(a) The address of the property and the name of the owner as
stated in the records of the county auditor of the county in which
the property is located;
(b) The amount of the valuation of the property that was
exempted from real property taxation under that section.
Not later than the thirty-first day of March of each
subsequent year, each such county auditor shall report the
information described in those divisions to the director of
development environmental protection for each property within the
county that is receiving a tax abatement under that section for
the preceding tax year.
(2) Not later than July 1, 1996, and not later than the first
day of July of each subsequent year, the director of development
environmental protection shall compile the information provided to
the director under division (B)(1) of this section applicable to
the preceding tax year into a report covering all of the counties
in the state in which are located properties receiving a tax
abatement under section 5709.87 of the Revised Code for the
preceding tax year and shall forward the report to the director of
environmental protection. The sole responsibility of the director
of development in preparing the report is to compile the
information submitted to the director by the county auditors under
division (B)(1) of this section.
(C) Not later than July 1, 1996, and not later than the first
day of July of each subsequent year, the director of development
environmental protection shall compile the information provided to
the director by municipal corporations and counties under division
(A) of section 5709.882 of the Revised Code applicable to the
preceding calendar year into a report covering, by county, all of
the municipal corporations and counties in this state in which are
located properties receiving a tax abatement pursuant to an
agreement entered into under section 5709.88 of the Revised Code
and shall forward the report to the director of environmental
protection. The sole responsibility of the director of development
in preparing the report is to compile the information submitted to
him by municipal corporations and counties under division (A) of
section 5709.882 of the Revised Code.
Sec. 5117.22. All petroleum violation escrow funds received
by this state from the federal government shall be deposited in
the state treasury to the credit of the energy oil overcharge
fund, which is hereby created. The fund shall be used by the
department of development services agency for energy conservation
and assistance programs approved by the United States department
of energy. All investment earnings of the fund shall be credited
to the fund.
Sec. 5701.15. As used in Title LVII of the Revised Code,
"department of development" means the development services agency
and "director of development" means the director of development
services.
Sec. 5709.68. (A) On or before the thirty-first day of March
each year, a municipal corporation or county that has entered into
an agreement with an enterprise under section 5709.62, 5709.63, or
5709.632 of the Revised Code shall submit to the director of
development services and the board of education of each school
district of which a municipal corporation or township to which
such an agreement applies is a part a report on all of those
agreements in effect during the preceding calendar year. The
report shall include all of the following information:
(1) The designation, assigned by the director of development
services, of each urban jobs and enterprise zone within the
municipal corporation or county, the date each zone was certified,
the name of each municipal corporation or township within each
zone, and the total population of each zone according to the most
recent data available;
(2) The number of enterprises that are subject to those
agreements and the number of full-time employees subject to those
agreements within each zone, each according to the most recent
data available and identified and categorized by the appropriate
standard industrial code, and the rate of unemployment in the
municipal corporation or county in which the zone is located for
each year since each zone was certified;
(3) The number of agreements approved and executed during the
calendar year for which the report is submitted, the total number
of agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired
during the calendar year for which the report is submitted, and
the number of agreements scheduled to expire during the calendar
year in which the report is submitted. For each agreement that
expired during the calendar year for which the report is
submitted, the municipal corporation or county shall include the
amount of taxes exempted and the estimated dollar value of any
other incentives provided under the agreement.
(4) The number of agreements receiving compliance reviews by
the tax incentive review council in the municipal corporation or
county during the calendar year for which the report is submitted,
including all of the following information:
(a) The number of agreements the terms of which an enterprise
has complied with, indicating separately for each agreement the
value of the real and personal property exempted pursuant to the
agreement and a comparison of the stipulated and actual schedules
for hiring new employees, for retaining existing employees, for
the amount of payroll of the enterprise attributable to these
employees, and for investing in establishing, expanding,
renovating, or occupying a facility;
(b) The number of agreements the terms of which an enterprise
has failed to comply with, indicating separately for each
agreement the value of the real and personal property exempted
pursuant to the agreement and a comparison of the stipulated and
actual schedules for hiring new employees, for retaining existing
employees, for the amount of payroll of the enterprise
attributable to these employees, and for investing in
establishing, expanding, renovating, or occupying a facility;
(c) The number of agreements about which the tax incentive
review council made recommendations to the legislative authority
of the municipal corporation or county, and the number of those
recommendations that have not been followed;
(d) The number of agreements rescinded during the calendar
year for which the report is submitted.
(5) The number of enterprises that are subject to agreements
that expanded within each zone, including the number of new
employees hired and existing employees retained by each
enterprise, and the number of new enterprises that are subject to
agreements and that established within each zone, including the
number of new employees hired by each enterprise;
(6)(a) The number of enterprises that are subject to
agreements and that closed or reduced employment at any place of
business within the state for the primary purpose of establishing,
expanding, renovating, or occupying a facility, indicating
separately for each enterprise the political subdivision in which
the enterprise closed or reduced employment at a place of business
and the number of full-time employees transferred and retained by
each such place of business;
(b) The number of enterprises that are subject to agreements
and that closed or reduced employment at any place of business
outside the state for the primary purpose of establishing,
expanding, renovating, or occupying a facility.
(7) For each agreement in effect during any part of the
preceding year, the number of employees employed by the enterprise
at the project site immediately prior to formal approval of the
agreement, the number of employees employed by the enterprise at
the project site on the thirty-first day of December of the
preceding year, the payroll of the enterprise for the preceding
year, the amount of taxes paid on tangible personal property
situated at the project site and the amount of those taxes that
were not paid because of the exemption granted under the
agreement, and the amount of taxes paid on real property
constituting the project site and the amount of those taxes that
were not paid because of the exemption granted under the
agreement. If an agreement was entered into under section 5709.632
of the Revised Code with an enterprise described in division
(B)(2) of that section, the report shall include the number of
employee positions at all of the enterprise's locations in this
state. If an agreement is conditioned on a waiver issued under
division (B) of section 5709.633 of the Revised Code on the basis
of the circumstance described in division (B)(3)(a) or (b) of that
section, the report shall include the number of employees at the
facilities referred to in division (B)(3)(a)(i) or (b)(i) of that
section, respectively.
(B) Upon the failure of a municipal corporation or county to
comply with division (A) of this section:
(1) Beginning on the first day of April of the calendar year
in which the municipal corporation or county fails to comply with
that division, the municipal corporation or county shall not enter
into any agreements with an enterprise under section 5709.62,
5709.63, or 5709.632 of the Revised Code until the municipal
corporation or county has complied with division (A) of this
section.
(2) On the first day of each ensuing calendar month until the
municipal corporation or county complies with division (A) of this
section, the director of development services shall either order
the proper county auditor to deduct from the next succeeding
payment of taxes to the municipal corporation or county under
section 321.31, 321.32, 321.33, or 321.34 of the Revised Code an
amount equal to one thousand dollars for each calendar month the
municipal corporation or county fails to comply with that
division, or order the county auditor to deduct that amount from
the next succeeding payment to the municipal corporation or county
from the undivided local government fund under section 5747.51 of
the Revised Code. At the time such a payment is made, the county
auditor shall comply with the director's order by issuing a
warrant, drawn on the fund from which the money would have been
paid, to the director of development services, who shall deposit
the warrant into the state enterprise zone program administration
fund created in division (C) of this section.
(C) The director, by rule, shall establish the state's
application fee for applications submitted to a municipal
corporation or county to enter into an agreement under section
5709.62, 5709.63, or 5709.632 of the Revised Code. In establishing
the amount of the fee, the director shall consider the state's
cost of administering the enterprise zone program, including the
cost of reviewing the reports required under division (A) of this
section. The director may change the amount of the fee at the
times and in the increments the director considers necessary. Any
municipal corporation or county that receives an application shall
collect the application fee and remit the fee for deposit in the
state treasury to the credit of the tax incentive programs
operating business assistance fund created in section 122.174 of
the Revised Code.
(D) On or before the thirtieth day of June each year, the
director of development services shall certify to the tax
commissioner the information described under division (A)(7) of
this section, derived from the reports submitted to the director
under this section.
On the basis of the information certified under this
division, the tax commissioner annually shall submit a report to
the governor, the speaker of the house of representatives, the
president of the senate, and the chairpersons of the ways and
means committees of the respective houses of the general assembly,
indicating for each enterprise zone the amount of state and local
taxes that were not required to be paid because of exemptions
granted under agreements entered into under section 5709.62,
5709.63, or 5709.632 of the Revised Code and the amount of
additional taxes paid from the payroll of new employees.
Sec. 5709.882. (A) On or before the thirty-first day of
March each year, a municipal corporation or county that has
entered into an agreement with an enterprise under section 5709.88
of the Revised Code shall submit to the director directors of
development services and environmental protection and the board of
education of each school district of which a municipal corporation
or county to which such an agreement applies is a part a report on
all such agreements in effect during the preceding calendar year.
The report shall include all of the following information:
(1) The number of enterprises that are subject to such
agreements and the number of full-time employees subject to those
agreements in the county or municipal corporation;
(2) The number of agreements approved and executed during the
calendar year for which the report is submitted, the total number
of agreements in effect on the thirty-first day of December of the
preceding calendar year, the number of agreements that expired
during the calendar year for which the report is submitted, and
the number of agreements scheduled to expire during the calendar
year in which the report is submitted. For each agreement that
expired during the calendar year for which the report is
submitted, the municipal corporation or county shall include the
amount of taxes exempted and the estimated dollar value of any
other incentives provided under the agreement.
(3) The number of agreements receiving compliance reviews by
the tax incentive review council in the municipal corporation or
county under section 5709.883 of the Revised Code during the
calendar year for which the report is submitted, including all of
the following information:
(a) The number of agreements the terms of which an enterprise
has complied with, indicating separately for each such agreement
the value of the real and personal property exempted pursuant to
the agreement and a comparison of the stipulated and actual
schedules for hiring new employees, for retaining existing
employees, for the amount of payroll of the enterprise
attributable to these employees, and for remediating and investing
in establishing, expanding, renovating, or occupying a facility;
(b) The number of agreements the terms of which an enterprise
has failed to comply with, indicating separately for each such
agreement the value of the real and personal property exempted
pursuant to the agreement and a comparison of the stipulated and
actual schedules for hiring new employees, for retaining existing
employees, for the amount of payroll of the enterprise
attributable to these employees, and for remediating and investing
in establishing, expanding, renovating, or occupying a facility;
(c) The number of agreements about which the tax incentive
review council made recommendations to the legislative authority
of the municipal corporation or county, and the number of such
recommendations that have not been followed;
(d) The number of agreements rescinded during the calendar
year for which the report is submitted.
(4) The number of enterprises that are subject to agreements
and the number of new employees hired and existing employees
retained by each such enterprise;
(5)(a) The number of enterprises that are subject to
agreements and that closed or reduced employment at any place of
business within the state for the primary purpose of remediating
and establishing, expanding, renovating, or occupying a facility,
indicating separately for each such enterprise the political
subdivision in which the enterprise closed or reduced employment
at a place of business and the number of full-time employees
transferred and retained by each such place of business;
(b) The number of enterprises that are subject to agreements
and that closed or reduced employment at any place of business
outside the state for the primary purpose of remediating and
establishing, expanding, renovating, or occupying a facility.
(B) Upon the failure of a municipal corporation or county to
comply with division (A) of this section, both of the following
apply:
(1) Beginning on the first day of April of the calendar year
in which the municipal corporation or county fails to comply with
that division, the municipal corporation or county shall not enter
into any agreements with an enterprise under section 5709.88 of
the Revised Code until the municipal corporation or county has
complied with division (A) of this section;
(2) On the first day of each ensuing calendar month until the
municipal corporation or county complies with that division, the
director of development services shall either order the proper
county auditor to deduct from the next succeeding payment of taxes
to the municipal corporation or county under section 321.31,
321.32, 321.33, or 321.34 of the Revised Code an amount equal to
five hundred dollars for each calendar month the municipal
corporation or county fails to comply with that division, or order
the county auditor to deduct such an amount from the next
succeeding payment to the municipal corporation or county from the
undivided local government fund under section 5747.51 of the
Revised Code. At the time such a payment is made, the county
auditor shall comply with the director's order by issuing a
warrant, drawn on the fund from which such money would have been
paid, to the director of development services, who shall deposit
the warrant into the contaminated sites development program
administration fund created in division (C) of this section.
(C) The director, by rule, shall establish the state's
application fee for applications submitted to a municipal
corporation or county to enter into an agreement under section
5709.88 of the Revised Code. In establishing the amount of the
fee, the director shall consider the state's cost of administering
this section and section 5709.88 of the Revised Code. The director
may change the amount of the fee at such times and in such
increments as he the director considers necessary. Any municipal
corporation or county that receives an application shall collect
the application fee and remit the fee for deposit in the state
treasury to the credit of the contaminated sites development
program administration fund, which is hereby created. Money
credited to the fund shall be used by the department of
development services agency to pay the costs of administering this
section and section 5709.88 of the Revised Code.
Sec. 6103.052. (A) A board of county commissioners may apply
to the water and sewer commission, created by division (C) of
section 1525.11 of the Revised Code, for an advance of moneys from
the water and sewer fund, created by division (A) of section
1525.11 of the Revised Code, in an amount equal to that portion of
the costs of an improvement authorized under sections 6103.02 to
6103.30 of the Revised Code which is to be financed by assessments
whose collection is deferred pursuant to division (B) of this
section. The application for such an advance of moneys shall be
made in the manner prescribed by rules of the commission.
(B) At any time prior to the expiration of the five-day
period provided by section 6103.05 of the Revised Code for the
filing of written objections, any owner of property which is
classified on the general tax list of the county auditor as
agricultural land and has been assessed for the extension of a
main water line over or along such property under sections 6103.02
to 6103.30 of the Revised Code may file with the board of county
commissioners a request in writing for deferment of the collection
of his the owner's assessment if the main water line
serves a
purpose set forth in section 1525.13 of the Revised Code for which
the water and sewer fund may be used provides water facilities to
aid in the establishment of new industrial plants, the expansion
of existing industrial plants, or such other industrial
development, or provides water facilities to aid in the
establishment of commercial and residential developments. Such
request shall identify the property in connection with which the
request for deferment is made, shall describe its present use and
present classification on the general tax list of the county
auditor, shall state its estimated market value, showing
separately the value of the land and the value of the buildings
thereon, shall state the reasons, if any, why a portion of the
benefit of the improvement will not be realized until the use of
the land is changed, and shall state the amount to be deferred.
The board shall promptly consider such request and may order the
deferment of the collection of that portion of the assessment
representing a benefit from the improvement that will not be
realized until the use of the land is changed. The board may, upon
request of an owner whose property has been assessed for the
extension of a main water line over or along such property under
sections 6103.02 to 6103.31 of the Revised Code, defer all or any
part of the assessment on property which is classified on the
general tax list of the county auditor as agricultural land, by
attributing the amount of such assessment or part thereof as
tap-in charges, if the main water line serves a purpose set forth
in section 1525.13 of the Revised Code for which the water and
sewer fund may be used. A deferment under this section may be
conditioned upon the approval of the advance of moneys applied for
pursuant to division (A) of this section, and a maximum length of
the deferment may be fixed to coincide with the maximum time
within which the advance must be repaid. The decision on the
request for deferment of collection of assessments shall be made
pursuant to standards established by rules of the commission
provides water facilities to aid in the establishment of new
industrial plants, the expansion of existing industrial plants, or
such other industrial development, or provides water facilities to
aid in the establishment of commercial and residential
developments. Upon determination and approval of final
assessments, the board of county commissioners shall certify all
deferred assessments and a fee equal to any fee paid by the board
to the commission pursuant to division (C) of section 1525.12 of
the Revised Code attributable to the two per cent of the amount of
the deferred assessments to the county auditor. For purposes of
this section, "assessment," "deferred assessment," or "assessment
deferred under this section" mean the fee and the deferred
assessment certified to the county auditor. The county auditor
shall record an assessment deferred under this section in the
water works record. Such record shall be kept until such time as
the assessments are paid in full or certified for collection in
installments as provided in this section. During the time when the
assessment is deferred there shall be a lien on the property
assessed, which lien shall arise at the time of recordation by the
county auditor and shall be in force until the assessments are
paid in full or certified for collection in installments.
(C)(B) The board of county commissioners shall defer the
collection of an assessment, except the amount of such assessment
or part thereof attributable as tap-in charges, which has been
deferred pursuant to division (B)(A) of this section on or before
January 1, 1987, beyond the expiration of the maximum time for the
original deferment if the property owner requests in writing, no
later than six months prior to the expiration of the original
deferment, that the assessment be further deferred and as long as
the property owner's land could qualify for placement in an
agricultural district pursuant to section 929.02 of the Revised
Code.
The board shall regularly review the use and ownership of the
property for which the collection of assessments has been deferred
pursuant to this division, and upon finding that the land could no
longer qualify for placement in an agricultural district pursuant
to section 929.02 of the Revised Code, the board shall immediately
collect, without interest, the full amount of the assessment
deferred and repay the commission the amount of any moneys
advanced by it in regard to such assessment. The board shall pay
all such amounts to the commission in one annual payment or longer
period as approved by the commission. The board shall pay, from
the general funds of the county, interest annually at the interest
rate per annum equal to that rate of interest published as the
20-bond index rate in "The Bond Buyer" minus four per cent per
annum or at five per cent per annum, whichever is greater, for any
moneys not repaid to the commission pursuant to this division
within one year of the date of the disqualification of the
property for the continual deferment which requires such
repayment. The interest rate for any moneys not repaid to the
commission shall be calculated one year from the date of the
disqualification of the property for the continual deferment which
requires such repayment, and annually thereafter.
(D)(C) The board of county commissioners shall send a notice
by regular or certified mail to all owners of property on which
assessments have been deferred pursuant to division (B)(A) of this
section, which lists the expiration of the deferment, not later
than two hundred ten days prior to the expiration of the deferment
of those assessments.
(E)(D) The board shall collect the assessments, without
interest, which have been deferred pursuant to division (B)(A) of
this section upon expiration of the maximum time for which
deferments were made and repay the commission the amount of any
moneys advanced by it in regard to such assessments; provided,
that for a property owner who requests in writing, no later than
six months prior to the expiration of the deferment period, that
payment of his the owner's deferred assessments be in
installments, the board of county commissioners upon expiration of
the deferment period may by resolution further certify for
collection pursuant to section 6103.16 of the Revised Code, such
deferred assessments in installments over not more than twenty
years, as determined by the board, together with interest thereon
each year on the unpaid balance at the same rate borne by bonds of
the county which shall be issued in anticipation thereof as
provided in Chapter 133. of the Revised Code, and the proceeds of
the bond issue used to repay such deferred assessments to the
commission.
Assessments which have been deferred by attribution as tap-in
charges under division (B)(A) of this section shall be collected
as deferred assessments at that time. As the board collects tap-in
charges which are deferred assessments under division (B) of this
section, it shall repay the commission the amount thereof which
was advanced by it in regard to such assessments. An owner of
property for which assessments have been deferred under division
(B)(A) of this section, in requesting a tap-in may, subject to the
approval of the board, designate a part of an entire assessed
tract as the part which the tap-in is to serve, and the board
shall collect the deferred assessment on that tract in the
proportion that the part bears to the entire tract, on a front
foot or other basis approved by the commission, but if in the
judgment of the board the tap-in is reasonably intended to serve
the entire tract or substantially all of the tract, it shall
collect the deferred assessment for the entire tract.
Prior to the expiration of the maximum time of deferment, the
board shall regularly review the use of the property for which the
collection of assessments has been deferred and upon finding,
pursuant to the rules of the commission, that the use of the land
has changed from the use at the time of the deferment so that the
benefit of the improvement can then be realized, the board shall
immediately collect the full amount of the assessment for the
portion of the property for which the use has so changed, without
interest, and repay the commission the amount of any moneys
advanced by it in regard to such assessment. The board shall pay
all such amounts to the commission in one annual payment or longer
period as approved by the commission. The board of county
commissioners shall pay, from the general funds of the county,
interest annually at the interest rate per annum equal to that
rate of interest published as the 20-bond index rate in "The Bond
Buyer" minus four per cent per annum or at five per cent per
annum, whichever is greater, for any moneys not repaid to the
commission pursuant to this division within one year of the date
of the change in the use of property requiring such repayment, or
of the date upon which payment of a tap-in charge is required by
law to be made, whichever date is applicable. The interest rate
for any moneys not repaid to the commission shall be calculated
one year from the date of the change in the use of property
requiring such repayment or from the date upon which payment of a
tap-in charge is required by law to be made, whichever date is
applicable, and annually thereafter.
Sec. 6117.062. (A) A board of county commissioners may apply
to the water and sewer commission, created by division (C) of
section 1525.11 of the Revised Code, for an advance of moneys from
the water and sewer fund, created by division (A) of section
1525.11 of the Revised Code, in an amount equal to that portion of
the costs of an improvement authorized under sections 6117.01 to
6117.45 of the Revised Code which is to be financed by assessments
whose collection is deferred pursuant to division (B) of this
section. The application for such an advance of moneys shall be
made in the manner prescribed by rules of the commission.
(B) At any time prior to the expiration of the five-day
period provided by section 6117.06 of the Revised Code for the
filing of written objections, any owner of property which is
classified on the general tax list of the county auditor as
agricultural land and has been assessed for the extension of a
trunk sewer line over or along such property under sections
6117.01 to 6117.45 of the Revised Code may file with the board of
county commissioners a request in writing for deferment of the
collection of his the assessment if the trunk sewer line serves a
purpose, as set forth in section 1525.13 of the Revised Code, for
which the fund may be used provides sewer facilities to aid in the
establishment of new industrial plants, the expansion of existing
industrial plants, or such other industrial development, or
provides sewer facilities to aid in the establishment of
commercial and residential developments. Such request shall
identify the property in connection with which the request for
deferment is made, shall describe its present use and present
classification on the general tax list of the county auditor,
shall state its estimated market value, showing separately the
value of the land and the value of the buildings thereon, shall
state the reasons, if any, why a portion of the benefit of the
improvement will not be realized until the use of the land is
changed, and shall state the amount to be deferred. The board
shall promptly consider such request and may order the deferment
of the collection of that portion of the assessment representing a
benefit from the improvement which will not be realized until the
use of the land is changed. The board may, upon request of an
owner whose property has been assessed for the extension of a
trunk sewer line over or along such property under sections
6117.01 to 6117.45 of the Revised Code, defer all or any part of
the assessment on property which is classified on the general tax
list as agricultural land, by attributing the amount of such
assessment or part thereof as tap-in charges, if the trunk sewer
line serves a purpose set forth in section 1525.13 of the Revised
Code for which the fund may be used. A deferment under this
section may be conditioned upon the approval of the advance of
moneys applied for pursuant to division (A) of this section, and a
maximum length of the deferment may be fixed to coincide with the
maximum time within which the advance must be repaid. The decision
on the request for deferment of collection of assessments shall be
made pursuant to standards established by rules of the commission
provides sewer facilities to aid in the establishment of new
industrial plants, the expansion of existing industrial plants, or
such other industrial development, or provides sewer facilities to
aid in the establishment of commercial and residential
developments. Upon determination and approval of final
assessments, the board of county commissioners shall certify all
deferred assessments and a fee equal to any fee paid by the board
to the commission pursuant to division (C) of section 1525.12 of
the Revised Code attributable to the deferred payments two per
cent of the amount of the deferred assessments to the county
auditor. For purposes of this section, "assessment," "deferred
assessment," or "assessment deferred under this section" mean the
fee and the deferred assessment certified to the county auditor.
The county auditor shall record an assessment deferred under this
section in the sewer improvement record. Such record shall be kept
until such time as the assessments are paid in full or certified
for collection in installments as provided in this section. During
the time when the assessment is deferred there shall be a lien on
the property assessed, which lien shall arise at the time of
recordation by the county auditor and which shall be in force
until the assessments are paid in full or certified for collection
in installments.
(C)(B) The board of county commissioners shall defer the
collection of an assessment, except the amount of such assessment
or part thereof attributable as tap-in charges, which has been
deferred pursuant to division (B)(A) of this section on or before
January 1, 1987, beyond the expiration of the maximum time for the
original deferment if the property owner requests in writing, no
later than six months prior to the expiration of the original
deferment, that the assessment be further deferred and as long as
the property owner's land could qualify for placement in an
agricultural district pursuant to section 929.02 of the Revised
Code.
The board shall regularly review the use and ownership of the
property for which the collection of assessments has been deferred
pursuant to this division, and upon finding that the land could no
longer qualify for placement in an agricultural district pursuant
to section 929.02 of the Revised Code, the board shall immediately
collect, without interest, the full amount of the assessment
deferred and repay the commission the amount of any moneys
advanced by it in regard to such assessment. The board shall pay
all such amounts to the commission in one annual payment or longer
period as approved by the commission. The board shall pay, from
the general funds of the county, interest annually at the interest
rate per annum equal to that rate of interest published as the
20-bond index rate in "The Bond Buyer" minus four per cent per
annum or at five per cent per annum, whichever rate is greater,
for any moneys not repaid to the commission pursuant to this
division within one year of the date of the disqualification of
the property for the continual deferment which requires such
repayment. The interest rate for any moneys not repaid to the
commission shall be calculated one year from the date of the
disqualification of the property for the continual deferment which
requires such repayment, and annually thereafter.
(D)(C) The board of county commissioners shall send a notice
by regular or certified mail to all owners of property on which
assessments have been deferred pursuant to division (B)(A) of this
section, which lists the expiration of the deferment, not later
than two hundred ten days prior to the expiration of the deferment
of those assessments.
(E)(D) The board shall collect assessments, without interest,
which have been deferred pursuant to division (B)(A) of this
section upon expiration of the maximum time for which deferments
were made and repay the commission the amount of any moneys
advanced by it in regard to such assessments; provided that for a
property owner who requests in writing, no later than six months
prior to the expiration of the deferment period, that payment of
his the deferred assessments be in installments, the board of
county commissioners upon expiration of the deferment period may
by resolution further certify for collection pursuant to section
6117.33 of the Revised Code, such deferred assessments in
installments over not more than twenty years, as determined by the
board, together with interest thereon each year on the unpaid
balance at the same rate borne by bonds of the county which shall
be issued in anticipation thereof as provided in Chapter 133. of
the Revised Code, and the proceeds of the bond issue used to repay
such deferred assessments to the commission. Prior to the
expiration of the maximum time of deferment, the board shall
regularly review the use of the property for which the collection
of assessments has been deferred and upon finding, pursuant to the
rules of the commission, that the use of the land has changed from
the use at the time of the deferment so that the benefit of the
improvement can then be realized, the board shall immediately
collect the full amount of the assessment for the portion of the
property for which the use has so changed, without interest, and
repay the commission the amount of any moneys advanced by it in
regard to such assessment. The board shall pay all such amounts to
the commission in one annual payment or longer period as approved
by the commission. The board shall pay, from the general funds of
the county, interest annually at the interest rate per annum equal
to that rate of interest published as the 20-bond index rate in
"The Bond Buyer" minus four per cent per annum or at five per cent
per annum, whichever is greater, for any moneys not repaid to the
commission pursuant to this division within one year of the date
of the change in the use of property requiring such repayment, or
of the date upon which payment of a tap-in charge is required by
law to be made, whichever date is applicable. The interest rate
for any moneys not repaid to the commission shall be calculated
one year from the date of the change in the use of property
requiring such repayment or from the date upon which payment of a
tap-in charge is required by law to be made, whichever date is
applicable, and annually thereafter.
SECTION 2. That existing sections 9.981, 102.03, 121.02,
121.03, 121.22, 122.01, 122.011, 122.07, 122.071, 122.17, 122.171,
122.174, 122.175, 122.39, 122.41, 122.42, 122.43, 122.44, 122.48,
122.49, 122.50, 122.51, 122.52, 122.53, 122.561, 122.57, 122.60,
122.601, 122.602, 122.603, 122.61, 122.62, 122.64, 122.76, 122.80,
122.86, 149.311, 149.43, 164.05, 164.06, 164.08, 166.01, 166.04,
166.05, 166.11, 166.13, 166.14, 166.18, 166.19, 166.25, 166.30,
174.01, 184.01, 187.01, 187.03, 187.04, 187.05, 929.03, 1551.01,
3735.672, 3746.35, 5117.22, 5709.68, 5709.882, 6103.052, and
6117.062 and sections 122.40,
1525.11,
1525.12,
1525.13, and
6111.034 of the Revised Code are hereby repealed.
SECTION 3. In enacting this act, it is the intent of the
General Assembly that changing the name of the "Department of
Development" to the Development Services Agency and the name of
the "Director of Development" to the Director of Development
Services does not do either of the following:
(A) Make substantive changes in statutory law;
(B) Cause unnecessary expense. The letterhead, forms, printed
materials, and signage displaying the former name of the
Department may be used until they are replaced.
SECTION 4. Upon the effective date of this act, all
references to the Department of Development or Director of
Development in other uncodified sections of law in Am. Sub. H.B.
153 of the 129th General Assembly and Am. Sub. H.B. 114 of the
129th General Assembly, shall be deemed to refer to the
Development Services Agency or the Director of Development
Services, respectively.
SECTION 5. (A) There is hereby established a five-year pilot
program to test a new funding mechanism for the state's travel and
tourism marketing. The funding mechanism shall begin operation in
fiscal year 2014 and be calculated as follows:
(1)(a) Not later than the twentieth day of October of each
year, starting in 2013 and ending in 2017, the Tax Commissioner
shall calculate the growth in fiscal year sales tax revenue from
certain defined categories that are related to tourism and certify
that amount to the Director of Budget and Management.
(b) Not later than the twentieth day of October of each year,
starting in 2013 and ending in 2017, the Commissioner shall
calculate and certify to the Director the difference, if greater
than zero, between the revenue collected from the tax imposed
under section 5739.02 of the Revised Code during the twelve-month
period ending on the last day of the preceding June and the
revenue collected during the same twelve-month period one year
earlier, for all vendors classified under the industry codes
identified in division (A)(2) of this section. On or before the
last day of October of each year, starting in 2013 and ending in
2017, the Director of Budget and Management shall transfer from
the General Revenue Fund to the Tourism Fund created in section
122.072 of the Revised Code the amount certified by the
Commissioner under this division, except that the transfer shall
not exceed ten million dollars for any fiscal year.
(c) Each fiscal year, beginning in fiscal year 2015, the Tax
Commissioner shall adjust the ten million annual dollar limit on
transfers to the Tourism Fund. The adjustment shall be made by
adding to the annual limit the product of multiplying the limit
for the preceding fiscal year by the sum of one plus the
percentage increase in the Consumer Price Index for all urban
consumers for the Midwest region, as determined by the United
States Bureau of Labor Statistics, for the twelve-month period
corresponding to the preceding fiscal year. The result shall be
rounded to the nearest one thousand dollars. The calculation of
the percentage increase in the Consumer Price Index shall be done
by taking the average index value over the twelve months of the
last completed fiscal year and comparing that to the average index
value over the twelve months of the immediately preceding fiscal
year.
(2) The following industries included in the industrial
classification system used by the Tax Commissioner shall be used
in the computations under division (A)(1) of this section: air
transportation; water transportation; interurban and rural bus
transportation; taxi service; limousine service; other transit and
ground passenger transportation; scenic and sightseeing
transportation; support activities for air transportation;
automotive equipment rental and leasing; travel arrangement and
reservation services; performing arts companies; spectator sports;
independent artists, writers, and performers; museums, historical
sites, and similar institutions; amusement parks and arcades;
gambling industries; hotels and motels; casino hotels;
bed-and-breakfast inns; other travel accommodations; recreational
vehicle parks and recreational camps; full-service restaurants;
limited-service eating places; drinking places (alcoholic
beverages).
(B) The pilot program shall terminate when the last transfer
of funds made in accordance with division (A)(1)(b) of this
section occurs in fiscal year 2018, specifically in October 2017.
At that time, the Director of Development Services, the Director
of Budget and Management, and the Tax Commissioner shall jointly
review the pilot program and make recommendations to the Governor
and the General Assembly on whether to make the funding mechanism
permanent and, if so, whether any changes should be made to it. If
the recommendation is to make the funding mechanism permanent, the
Director of Development Services, the Director of Budget and
Management, and the Tax Commissioner shall also study and make
recommendations to the Governor and the General Assembly as to
whether the Office of TourismOhio and its functions should be
removed from the Development Services Agency and established as a
private nonprofit corporation or a subsidiary corporation of
JobsOhio.
SECTION 6. (A) As used in this section, "federal act" means
the "Small Business Liability Relief and Brownfields
Revitalization Act," 115 Stat. 2356 (2002), 42 U.S.C. 9601 and
9604.
(B) There is hereby created in the state treasury the
Brownfields Revolving Loan Fund. The Fund shall consist of all
moneys received by the state from the United States Department of
Environmental Protection under the federal act. The Fund shall be
used to make grants and loans by the Director of Development
Services.
(C) The Director shall administer moneys received into the
Fund and comply with all requirements imposed by the federal act
in its application for, and administration of, the funds as grants
and loans.
(D) The Director shall establish a schedule of fees and
charges payable by grant and loan recipients to the Director for
the administration of this section.
SECTION 7. The amendment by this act adding division (C)(2)
to section 122.17 of the Revised Code does not apply to projects
that are completed before the effective date of this section.
SECTION 8. Section 122.42 of the Revised Code is presented
in this act as a composite of the section as amended by both Am.
Sub. H.B. 117 and Am. Sub. H.B. 356 of the 121st General Assembly.
The General Assembly, applying the principle stated in division
(B) of section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
SECTION 9. Section 149.43 of the Revised Code is presented
in this act as a composite of the section as amended by both Sub.
H.B. 64 and Am. Sub. H.B. 153 of the 129th General Assembly. The
General Assembly, applying the principle stated in division (B) of
section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
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