SB 145: Rename the Department of Development; modify the housing law

As Introduced

136th General Assembly Regular Session 2025-2026

S. B. No. 145

Senators Reynolds, Craig

o amend sections 9.47, 9.66, 107.03, 107.21, 1
117.55, 121.02, 121.03, 121.35, 122.01, 122.011, 2
122.012, 122.013, 122.014, 122.02, 122.03, 3
122.04, 122.041, 122.042, 122.05, 122.06, 4
122.07, 122.071, 122.073, 122.075, 122.077, 5
122.08, 122.081, 122.082, 122.083, 122.085, 6
122.086, 122.087, 122.088, 122.089, 122.0810, 7
122.0811, 122.0812, 122.0813, 122.0814, 8
122.0815, 122.0816, 122.0817, 122.09, 122.10, 9
122.11, 122.121, 122.131, 122.132, 122.133, 10
122.134, 122.135, 122.136, 122.14, 122.15, 11
122.151, 122.152, 122.153, 122.154, 122.155, 12
122.156, 122.16, 122.17, 122.171, 122.172, 13
122.173, 122.174, 122.175, 122.176, 122.177, 14
122.178, 122.179, 122.1710, 122.1711, 122.18, 15
122.19, 122.20, 122.21, 122.22, 122.23, 122.24, 16
122.25, 122.26, 122.27, 122.29, 122.291, 122.30, 17
122.31, 122.32, 122.33, 122.35, 122.36, 122.37, 18
122.38, 122.401, 122.403, 122.406, 122.4017, 19
122.4018, 122.4019, 122.4020, 122.4023, 20
122.4024, 122.4030, 122.4031, 122.4032, 21
122.4033, 122.4034, 122.4035, 122.4036, 22
122.4037, 122.4040, 122.4043, 122.4044, 23
122.4045, 122.4046, 122.4050, 122.4051, 24
122.4055, 122.4063, 122.4070, 122.4071, 25
122.4073, 122.4075, 122.4076, 122.4077, 122.41, 26
122.42, 122.43, 122.44, 122.45, 122.451, 122.46, 27
122.47, 122.48, 122.49, 122.52, 122.53, 122.54, 28
122.55, 122.56, 122.561, 122.57, 122.571, 29
122.58, 122.59, 122.60, 122.601, 122.602, 30
122.603, 122.604, 122.605, 122.61, 122.62, 31
122.63, 122.631, 122.632, 122.633, 122.64, 32
122.641, 122.6510, 122.6511, 122.6512, 122.67, 33
122.68, 122.681, 122.69, 122.70, 122.701, 34
122.71, 122.72, 122.73, 122.74, 122.75, 122.76, 35
122.77, 122.78, 122.79, 122.80, 122.81, 122.82, 36
122.84, 122.85, 122.851, 122.852, 122.86, 37
122.88, 122.89, 122.90, 122.91, 122.92, 122.921, 38
122.922, 122.923, 122.924, 122.925, 122.94, 39
122.941, 122.942, 122.951, 122.9511, 122.9512, 40
122.96, 123.01, 123.22, 125.08, 125.081, 41
125.111, 125.20, 125.836, 125.901, 126.023, 42
126.32, 126.62, 140.01, 145.035, 149.311, 43
150.02, 151.40, 153.59, 164.02, 165.01, 165.03, 44
165.20, 166.01, 166.02, 166.03, 166.04, 166.05, 45
166.06, 166.07, 166.08, 166.09, 166.12, 166.13, 46
166.14, 166.15, 166.16, 166.17, 166.18, 166.19, 47
166.20, 166.21, 166.25, 166.27, 167.02, 169.05, 48
173.08, 174.01, 174.02, 174.03, 174.04, 174.05, 49
174.06, 174.07, 175.03, 175.04, 175.06, 175.15, 50
176.01, 176.07, 184.01, 184.151, 184.16, 187.01, 51
187.03, 187.04, 187.05, 187.061, 191.02, 191.03, 52
191.10, 191.13, 191.15, 191.17, 191.19, 191.27, 53
191.30, 191.33, 191.35, 191.37, 191.40, 191.44, 54
191.45, 308.21, 321.261, 321.262, 333.03, 55
333.04, 333.05, 340.13, 703.34, 709.024, 56
709.192, 715.70, 715.72, 902.04, 991.02, 57
1517.14, 1551.01, 1551.05, 1551.06, 1551.11, 58
1551.12, 1551.15, 1551.19, 1551.20, 1551.311, 59
1551.32, 1551.33, 1551.35, 1555.02, 1555.03, 60
1555.04, 1555.05, 1555.06, 1555.08, 1555.17, 61
1728.01, 1728.07, 3326.02, 3327.17, 3333.373, 62
3333.50, 3366.01, 3366.03, 3366.04, 3735.27, 63
3735.39, 3735.66, 3735.671, 3735.672, 3735.673, 64
3735.69, 3742.32, 3746.121, 3746.20, 3775.04, 65
3780.03, 3780.19, 4121.123, 4164.04, 4164.12, 66
4301.17, 4303.181, 4303.262, 4503.591, 4582.58, 67
4901.021, 4906.02, 4928.06, 4928.43, 4928.51, 68
4928.52, 4928.53, 4928.54, 4928.543, 4928.544, 69
4928.55, 4928.56, 4928.57, 4928.58, 4928.581, 70
4928.582, 4928.583, 4928.61, 4928.62, 4928.63, 71
4928.75, 4929.16, 4929.161, 4929.163, 4981.02, 72
4981.03, 5101.16, 5104.30, 5117.02, 5117.03, 73
5117.04, 5117.05, 5117.07, 5117.071, 5117.08, 74
5117.09, 5117.10, 5117.12, 5117.22, 5119.34, 75
5120.07, 5126.071, 5126.18, 5501.031, 5531.08, 76
5703.0510, 5709.12, 5709.211, 5709.212, 5709.22, 77
5709.40, 5709.41, 5709.45, 5709.48, 5709.51, 78
5709.61, 5709.62, 5709.63, 5709.631, 5709.632, 79
5709.633, 5709.64, 5709.66, 5709.67, 5709.671, 80
5709.68, 5709.69, 5709.73, 5709.78, 5709.82, 81
5709.87, 5709.88, 5709.882, 5717.02, 5725.32, 82
5725.33, 5726.54, 5726.55, 5726.59, 5727.75, 83
5729.032, 5729.16, 5733.33, 5733.34, 5733.352, 84
5733.58, 5733.59, 5747.01, 5747.331, 5747.51, 85
5747.66, 5747.67, 5751.52, 5751.54, 5751.55, 86
6111.12, 6121.02, and 6123.031 and to enact 87
sections 122.634 and 122.635 of the Revised Code 88
to rename the Department of Development to the 89

S. B. No. 145 As Introduced

Department of Housing and Development and to 90
otherwise modify the law related to housing. 91

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

Section 1. That sections 9.47, 9.66, 107.03, 107.21, 92
117.55, 121.02, 121.03, 121.35, 122.01, 122.011, 122.012, 93
122.013, 122.014, 122.02, 122.03, 122.04, 122.041, 122.042, 94
122.05, 122.06, 122.07, 122.071, 122.073, 122.075, 122.077, 95
122.08, 122.081, 122.082, 122.083, 122.085, 122.086, 122.087, 96
122.088, 122.089, 122.0810, 122.0811, 122.0812, 122.0813, 97
122.0814, 122.0815, 122.0816, 122.0817, 122.09, 122.10, 122.11, 98
122.121, 122.131, 122.132, 122.133, 122.134, 122.135, 122.136, 99
122.14, 122.15, 122.151, 122.152, 122.153, 122.154, 122.155, 100
122.156, 122.16, 122.17, 122.171, 122.172, 122.173, 122.174, 101
122.175, 122.176, 122.177, 122.178, 122.179, 122.1710, 122.1711, 102
122.18, 122.19, 122.20, 122.21, 122.22, 122.23, 122.24, 122.25, 103
122.26, 122.27, 122.29, 122.291, 122.30, 122.31, 122.32, 122.33, 104
122.35, 122.36, 122.37, 122.38, 122.401, 122.403, 122.406, 105
122.4017, 122.4018, 122.4019, 122.4020, 122.4023, 122.4024, 106
122.4030, 122.4031, 122.4032, 122.4033, 122.4034, 122.4035, 107
122.4036, 122.4037, 122.4040, 122.4043, 122.4044, 122.4045, 108
122.4046, 122.4050, 122.4051, 122.4055, 122.4063, 122.4070, 109
122.4071, 122.4073, 122.4075, 122.4076, 122.4077, 122.41, 110
122.42, 122.43, 122.44, 122.45, 122.451, 122.46, 122.47, 122.48, 111
122.49, 122.52, 122.53, 122.54, 122.55, 122.56, 122.561, 122.57, 112
122.571, 122.58, 122.59, 122.60, 122.601, 122.602, 122.603, 113
122.604, 122.605, 122.61, 122.62, 122.63, 122.631, 122.632, 114
122.633, 122.64, 122.641, 122.6510, 122.6511, 122.6512, 122.67, 115
122.68, 122.681, 122.69, 122.70, 122.701, 122.71, 122.72, 116

S. B. No. 145 As Introduced

122.73, 122.74, 122.75, 122.76, 122.77, 122.78, 122.79, 122.80, 117
122.81, 122.82, 122.84, 122.85, 122.851, 122.852, 122.86, 118
122.88, 122.89, 122.90, 122.91, 122.92, 122.921, 122.922, 119
122.923, 122.924, 122.925, 122.94, 122.941, 122.942, 122.951, 120
122.9511, 122.9512, 122.96, 123.01, 123.22, 125.08, 125.081, 121
125.111, 125.20, 125.836, 125.901, 126.023, 126.32, 126.62, 122
140.01, 145.035, 149.311, 150.02, 151.40, 153.59, 164.02, 123
165.01, 165.03, 165.20, 166.01, 166.02, 166.03, 166.04, 166.05, 124
166.06, 166.07, 166.08, 166.09, 166.12, 166.13, 166.14, 166.15, 125
166.16, 166.17, 166.18, 166.19, 166.20, 166.21, 166.25, 166.27, 126
167.02, 169.05, 173.08, 174.01, 174.02, 174.03, 174.04, 174.05, 127
174.06, 174.07, 175.03, 175.04, 175.06, 175.15, 176.01, 176.07, 128
184.01, 184.151, 184.16, 187.01, 187.03, 187.04, 187.05, 129
187.061, 191.02, 191.03, 191.10, 191.13, 191.15, 191.17, 191.19, 130
191.27, 191.30, 191.33, 191.35, 191.37, 191.40, 191.44, 191.45, 131
308.21, 321.261, 321.262, 333.03, 333.04, 333.05, 340.13, 132
703.34, 709.024, 709.192, 715.70, 715.72, 902.04, 991.02, 133
1517.14, 1551.01, 1551.05, 1551.06, 1551.11, 1551.12, 1551.15, 134
1551.19, 1551.20, 1551.311, 1551.32, 1551.33, 1551.35, 1555.02, 135
1555.03, 1555.04, 1555.05, 1555.06, 1555.08, 1555.17, 1728.01, 136
1728.07, 3326.02, 3327.17, 3333.373, 3333.50, 3366.01, 3366.03, 137
3366.04, 3735.27, 3735.39, 3735.66, 3735.671, 3735.672, 138
3735.673, 3735.69, 3742.32, 3746.121, 3746.20, 3775.04, 3780.03, 139
3780.19, 4121.123, 4164.04, 4164.12, 4301.17, 4303.181, 140
4303.262, 4503.591, 4582.58, 4901.021, 4906.02, 4928.06, 141
4928.43, 4928.51, 4928.52, 4928.53, 4928.54, 4928.543, 4928.544, 142
4928.55, 4928.56, 4928.57, 4928.58, 4928.581, 4928.582, 143
4928.583, 4928.61, 4928.62, 4928.63, 4928.75, 4929.16, 4929.161, 144
4929.163, 4981.02, 4981.03, 5101.16, 5104.30, 5117.02, 5117.03, 145
5117.04, 5117.05, 5117.07, 5117.071, 5117.08, 5117.09, 5117.10, 146
5117.12, 5117.22, 5119.34, 5120.07, 5126.071, 5126.18, 5501.031, 147
5531.08, 5703.0510, 5709.12, 5709.211, 5709.212, 5709.22, 148

S. B. No. 145 As Introduced

5709.40, 5709.41, 5709.45, 5709.48, 5709.51, 5709.61, 5709.62, 149
5709.63, 5709.631, 5709.632, 5709.633, 5709.64, 5709.66, 150
5709.67, 5709.671, 5709.68, 5709.69, 5709.73, 5709.78, 5709.82, 151
5709.87, 5709.88, 5709.882, 5717.02, 5725.32, 5725.33, 5726.54, 152
5726.55, 5726.59, 5727.75, 5729.032, 5729.16, 5733.33, 5733.34, 153
5733.352, 5733.58, 5733.59, 5747.01, 5747.331, 5747.51, 5747.66, 154
5747.67, 5751.52, 5751.54, 5751.55, 6111.12, 6121.02, and 155
6123.031 be amended and sections 122.634 and 122.635 of the 156
Revised Code be enacted to read as follows: 157
Sec. 9.47. (A) Any person desiring to bid on a contract 158
awarded pursuant to Chapter 153. of the Revised Code by an owner 159
referred to in section 153.01 of the Revised Code or awarded by 160
the director of transportation pursuant to Chapter 5525. of the 161
Revised Code may make application for a certificate of 162
compliance with affirmative action programs. Application shall 163
be made to the department of housing and development. The 164
director of housing and development's designee shall promptly 165
determine whether the person has complied with all federal 166
affirmative action programs to which the person was subject and 167
any state affirmative action program to which the person was 168
subject pursuant to section 153.59 of the Revised Code which 169
state or federal affirmative action program arose out of a 170
contract the person had with the federal government, the state, 171
or a political subdivision of the state. Where the director's 172
designee determines the person has not committed any violation 173
of such prior affirmative action programs during the five years 174
immediately preceding the date of determination, the director's 175
designee shall issue a dated certificate of compliance with 176
affirmative action programs. The director's designee may issue 177
an updated certificate to a person upon request but not more 178
frequently than once every one hundred eighty days. A person who 179

S. B. No. 145 As Introduced

violates an affirmative action program during the five years 180
preceding the date of determination is ineligible to bid on a 181
contract awarded pursuant to Chapter 153. of the Revised Code by 182
an owner referred to in section 153.01 of the Revised Code or 183
awarded by the director of transportation pursuant to Chapter 184
5525. of the Revised Code for a period of three years after the 185
date of determination. 186
(B) Any person denied a certificate or an updated 187
certificate may appeal to the director of housing and 188
development for a review of that determination. The appeal must 189
be filed within ten days of the date of the determination. The 190
director shall, within five days after receipt of the appeal, 191
either affirm or reverse the determination. 192
(C) Any person dissatisfied with the decision of the 193
director on review may, within thirty days, appeal the decision 194
of the director to the court of common pleas of Franklin county. 195
The court may affirm or reverse the decision of the director. At 196
the hearing before the court, evidence may be introduced for and 197
against the decision of the director. The decision of the court 198
may be appealed as in other cases. 199
(D) The director of housing and development, in accordance 200
with Chapter 119. of the Revised Code, shall adopt, and may 201
amend or rescind, rules to implement this section. 202

Sec. 9.66. (A) As used in this section: 203

(1) "Economic development assistance" means all of the 204
following: 205
(a) The programs and assistance provided or administered 206
by the department of housing and development under Chapters 122. 207
and 166. of the Revised Code and any other section of the 208

S. B. No. 145 As Introduced

Revised Code under which the department provides or administers 209
economic development assistance; 210
(b) The programs and assistance provided or administered 211
by a political subdivision under Chapters 725. and 1728. and 212
sections 3735.67 to 3735.70, 5709.40 to 5709.43, 5709.61 to 213
5709.69, 5709.73 to 5709.75, and 5709.77 to 5709.81 of the 214
Revised Code and any other section of the Revised Code under 215
which a political subdivision provides economic development 216
assistance; 217
(c) Assistance provided under any other section of the 218
Revised Code under which the state or a state agency provides or 219
administers economic development assistance; 220
(d) The tax credit authorized by section 5725.31, 5729.07, 221
or 5733.42 of the Revised Code. 222
(2) "Liability" means any of the following: 223
(a) Any delinquent tax owed the state or a political 224
subdivision of the state; 225
(b) Any moneys owed the state or a state agency for the 226
administration or enforcement of the environmental laws of the 227
state; 228
(c) Any other moneys owed the state, a state agency, or a 229
political subdivision of the state that are past due. 230
"Liability" includes any item described in division (A) 231
of this section that is being contested in a court of law. 232
(3) "Political subdivision" means any county, municipal 233
corporation, or township of the state. 234
(4) "State agency" means every organized body, office, or 235

S. B. No. 145 As Introduced

agency established by the laws of the state for the exercise of 236
any function of state government. 237
(B) A person who applies to the state, a state agency, or 238
a political subdivision for economic development assistance 239
shall indicate on the application for assistance whether the 240
person has any outstanding liabilities owed to the state, a 241
state agency, or a political subdivision. Such a person also 242
shall authorize the state, state agency, or political 243
subdivision to inspect the personal or corporate financial 244
statements of the applicant, including tax records and other 245
similar information not open to public inspection. 246
(C)(1) Whoever knowingly makes a false statement under 247
division (B) of this section concerning an application for 248
economic development assistance or who fails to provide any 249
information required by that division is ineligible for the 250
assistance applied for and is ineligible for any future economic 251
development assistance from the state, a state agency, or a 252
political subdivision. 253
(2) Whoever knowingly makes a false statement under 254
division (B) of this section concerning an application for 255
economic development assistance or who fails to provide any 256
information required by that division shall return any moneys 257
received from the state, a state agency, or a political 258
subdivision in connection with that application. 259
Sec. 107.03. (A) As used in this section, "transportation 260
budget" means the biennial budget that primarily includes the 261
following: 262
(1) Motor fuel excise tax-related appropriations for the 263
department of transportation, public works commission, and 264

S. B. No. 145 As Introduced

department of housing and_development; 265

266 267

and infrastructure related to transportation.

os oo () 268

269

assembly's organization. 270

(C） The governor shall submit to the general assembly, not 271

later than four weeks after its organization, a state budget 272

containing a complete financial plan for the ensuing fiscal 273

biennium, excluding items of revenue and expenditure described 274

in section 126.022 of the Revised Code. However, in years of a 275

new governor's inauguration, this budget shall be submitted not 276

later than the fifteenth day of March. 277

(D） In years of a new governor's inauguration, only the 278

new governor shall submit a budget to the general assembly. In 279

addition to other things required by law, each of the governor's 280

budgets shall contain: 281

(l) A general budget summary by function and agency 282

setting forth the proposed total expenses from each and all 283

funds and the anticipated resources for meeting such expenses; 284

such resources to include any available balances in the several 285

funds at the beginning of the biennium and a classification by 286

totals of all revenue receipts estimated to accrue during the 287

biennium under existing law and proposed legislation. 288

(2） A detailed statement showing the amounts recommended 289

290

biennium for current expenses, including, but not limited to, 291

personal services, supplies and materials, equipment, subsidies and revenue distribution, merchandise for resale, transfers, and

S. B. No. 145 As Introduced

nonexpense disbursements, obligations, interest on debt, and 294
retirement of debt, and for the biennium for capital outlay, to 295
the respective departments, offices, institutions, as defined in 296
section 121.01 of the Revised Code, and all other public 297
purposes; and, in comparative form, the actual expenses by 298
source of funds during each fiscal year of the previous two 299
bienniums for each such purpose. No alterations shall be made in 300
the requests for the legislative and judicial branches of the 301
state filed with the director of budget and management under 302
section 126.02 of the Revised Code. If any amount of federal 303
money is recommended to be appropriated or has been expended for 304
a purpose for which state money also is recommended to be 305
appropriated or has been expended, the amounts of federal money 306
and state money involved shall be separately identified. 307
(3) A detailed estimate of the revenue receipts in each 308
fund from each source under existing laws during each year of 309
the biennium; and, in comparative form, actual revenue receipts 310
in each fund from each source for each year of the two previous 311
bienniums; 312
(4) The estimated cash balance in each fund at the 313
beginning of the biennium covered by the budget; the estimated 314
liabilities outstanding against each such balance; and the 315
estimated net balance remaining and available for new 316
appropriations; 317
(5) A detailed estimate of the additional revenue receipts 318
in each fund from each source under proposed legislation, if 319
enacted, during each year of the biennium; 320
(6) The most recent report prepared by the department of 321
taxation under section 5703.48 of the Revised Code, which shall 322
be submitted to the general assembly as an appendix to the 323

S. B. No. 145 As Introduced

governor's budget; 324

(7) The most recent TANF spending plan prepared by the 325
department of job and family services under section 5101.806 of 326
the Revised Code, which shall be submitted to the general 327
assembly as an appendix to the governor's budget; 328
(8) The medicaid caseload and expenditure forecast report 329
prepared by the office of budget and management, in consultation 330
with the department of medicaid, under section 126.021 of the 331
Revised Code. The report shall be submitted to the general 332
assembly as a supplemental budget document to provide an in- 333
depth analysis of the governor's budget recommendations for the 334
medicaid budget as a whole and for each of the major medicaid 335
appropriation items. The report shall clearly distinguish a 336
proposed policy change from continuing law or administrative 337
policy and indicate whether the data used throughout the report 338
is proposed, estimated, or actual data for the current or 339
proposed budget biennium. At a minimum, the report shall 340
delineate a part-to-whole mapping of the state and federal 341
shares of the general revenue fund appropriation item 651525, 342
medicaid health care services, or any other equivalent general 343
revenue fund appropriation item, by eligibility group and 344
subgroup, service delivery system, delivery system, medicaid 345
provider, and program. 346
Sec. 107.21. (A) As used in this section, "Appalachian 347
region" means the following counties in this state that have 348
been designated as part of Appalachia by the federal Appalachian 349
regional commission and that have been geographically isolated 350
and economically depressed: Adams, Ashtabula, Athens, Belmont, 351
Brown, Carroll, Clermont, Columbiana, Coshocton, Gallia, 352
Guernsey, Harrison, Highland, Hocking, Holmes, Jackson, 353

S. B. No. 145 As Introduced

Jefferson, Lawrence, Mahoning, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pike, Ross, Scioto, Trumbull, Tuscarawas, Vinton, and Washington.

356
(B) There is hereby created in the department of housing 357
and development the governor's office of Appalachian Ohio. The 358
governor shall designate the director of the governor's office 359
of Appalachian Ohio. The director shall report directly to the 360
office of the governor. On January 1, 1987, the governor shall 361
designate the director to represent this state on the federal 362
Appalachian regional commission. The director may appoint such 363
employees as are necessary to exercise the powers and duties of 364
this office. The director shall maintain local development 365
districts as established within the Appalachian region for the 366
purpose of regional planning for the distribution of funds from 367
the Appalachian regional commission within the Appalachian 368
region. 369
(C) The governor's office of Appalachian Ohio shall 370
represent the interests of the Appalachian region in the 371
government of this state. The duties of the director of the 372
office shall include, but are not limited to, the following: 373
(1) To identify residents of the Appalachian region 374
qualified to serve on state boards, commissions, and bodies and 375
in state offices, and to bring these persons to the attention of 376
the governor; 377
(2) To represent the interests of the Appalachian region 378
in the general assembly and before state boards, commissions, 379
bodies, and agencies; 380
(3) To assist in forming a consensus on public issues and 381
policies among institutions and organizations that serve the 382

S. B. No. 145 Page 14 As Introduced

Appalachian region; 383
(4) To act as an ombudsperson to assist in resolving 384
differences between state or federal agencies and the officials 385
of political subdivisions or private, nonprofit organizations 386
located within the Appalachian region; 387
(5) To assist planning commissions, agencies, and 388
organizations within the Appalachian region in distributing 389
planning information and documents to the appropriate state and 390
federal agencies and to assist in focusing attention on any 391
findings and recommendations of these commissions, agencies, and 392
organizations; 393
(6) To issue reports on the Appalachian region that 394
describe progress achieved and the needs that still exist in the 395
region; 396
(7) To assist the governor's office in resolving the 397
problems of residents of the Appalachian region that come to the 398
governor's attention. 399
(D) The amount of money from appropriated state funds 400
allocated each year to pay administrative costs of a local 401
development district existing on the effective date of this 402
amendment October 16, 2009, shall not be decreased due to the 403
creation and funding of additional local development districts. 404
The amount of money allocated to each district shall be 405
increased each year by the average percentage of increase in the 406
consumer price index for the prior year. 407
As used in this division, "consumer price index" means the 408
consumer price index for all urban consumers (United States city 409

average, all items), prepared by the United States department of labor, bureau of labor statistics.

S. B. No. 145 As Introduced

Sec. 117.55. (A) As used in this section: 412

(1) "Entity" means, whether for profit or nonprofit, a 413
corporation, association, partnership, limited liability 414
company, sole proprietorship, or other business entity. "Entity" 415
does not include an individual who receives state assistance 416
that is not related to the individual's business. 417

(2) "State award for economic development" means state financial assistance and expenditure in any of the following forms: grants, subgrants, loans, awards, cooperative agreements, or other similar and related forms of financial assistance and contracts, subcontracts, purchase orders, task orders, delivery orders, or other similar and related transactions. It does not include compensation received as an employee of the state or any state financial assistance and expenditure received from the general assembly or any legislative agency, any court or judicial agency, or from the offices of the attorney general, the secretary of state, the auditor of state, or the treasurer of state.

(B) Not later than thirty days after the end of the state fiscal year, the department of housing and development shall send the auditor of state a list of state awards for economic development. The auditor of state shall review each award and determine if an entity is in compliance with the terms and conditions, including performance metrics, of a state award for economic development received by that entity.

(C) The auditor of state shall publish a report of its 437
reviews and determinations not later than ninety days after 438
receipt of the list of state awards from the department of 439
housing and development. 440

S. B. No. 145 As Introduced

(D) When the auditor of state finds that an entity that 441
receives or has received a state award for economic development 442
is not in compliance with a performance metric that is specified 443
in the terms and conditions of the award, the auditor of state 444
shall report the findings to the attorney general. The attorney 445
general may pursue against and from that entity such remedies 446
and recoveries as are available under law. 447
(E) If the auditor of state is authorized to conduct an 448
audit of an entity that receives or has received a state award 449
for economic development, the audit shall be conducted in 450
accordance with Chapter 117. of the Revised Code. 451
Sec. 121.02. The following administrative departments and 452
their respective directors are hereby created: 453
(A) The office of budget and management, which shall be 454
administered by the director of budget and management; 455
(B) The department of commerce, which shall be 456
administered by the director of commerce; 457
(C) The department of administrative services, which shall 458
be administered by the director of administrative services; 459
(D) The department of transportation, which shall be 460
administered by the director of transportation; 461
(E) The department of agriculture, which shall be 462
administered by the director of agriculture; 463
(F) The department of natural resources, which shall be 464
administered by the director of natural resources; 465
(G) The department of health, which shall be administered 466
by the director of health; 467

S. B. No. 145 As Introduced

(H) The department of job and family services, which shall 468
be administered by the director of job and family services; 469
(I) The department of children and youth, which shall be 470
administered by the director of children and youth; 471
(J) The department of public safety, which shall be 472
administered by the director of public safety; 473
(K) The department of mental health and addiction 474
services, which shall be administered by the director of mental 475
health and addiction services; 476
(L) The department of developmental disabilities, which 477
shall be administered by the director of developmental 478
disabilities; 479
(M) The department of insurance, which shall be 480
administered by the superintendent of insurance as director 481
thereof; 482
(N) The department of housing and development, which shall 483
be administered by the director of housing and development; 484
(O) The department of youth services, which shall be 485
administered by the director of youth services; 486
(P) The department of rehabilitation and correction, which 487
shall be administered by the director of rehabilitation and 488
correction; 489
(Q) The environmental protection agency, which shall be 490
administered by the director of environmental protection; 491
(R) The department of aging, which shall be administered 492
by the director of aging; 493
(S) The department of veterans services, which shall be 494

S. B. No. 145 Page 18

As Introduced

dministered by the director of veterans services; 495
(T) The department of medicaid, which shall be 496
dministered by the medicaid director; 497
(U) The department of education and workforce, which shall 498
e administered by the director of education and workforce. 499
The director of each department shall exercise the powers 500
and perform the duties vested by law in such department. 501
Sec. 121.03. The following administrative department heads 502
shall be appointed by the governor, with the advice and consent 503
f the senate, and shall hold their offices during the term of 504
he appointing governor, and are subject to removal at the 505
pleasure of the governor. 506
(A) The director of budget and management; 507
(B) The director of commerce; 508
(C) The director of transportation; 509
(D) The director of agriculture; 510
(E) The director of job and family services; 511
(F) The director of children and youth; 512
(G) The director of public safety; 513
(H) The superintendent of insurance; 514
(I) The director of housing and development; 515
(J) The tax commissioner; 516
The director of administrative services; 517
(L) The director of natural resources; 518

S. B. No. 145 As Introduced

(M) The director of mental health and addiction services; 519
(N) The director of developmental disabilities; 520
(O) The director of health; 521
(P) The director of youth services; 522
(Q) The director of rehabilitation and correction; 523
(R) The director of environmental protection; 524
(S) The director of aging; 525
(T) The administrator of workers' compensation who meets 526
the qualifications required under division (A) of section 527
4121.121 of the Revised Code; 528
(U) The director of veterans services who meets the 529
qualifications required under section 5902.01 of the Revised 530
Code; 531
(V) The chancellor of higher education; 532
(W) The medicaid director; 533
(X) The director of education and workforce. 534
Sec. 121.35. (A) Subject to division (B) of this section, 535
the following state agencies shall collaborate to revise and 536
make more uniform the eligibility standards and eligibility 537
determination procedures of programs the state agencies 538
administer: 539
(1) The department of aging; 540
(2) The department of housing and development; 541
(3) The department of developmental disabilities; 542
(4) The department of education and workforce; 543

S. B. No. 145 As Introduced

(5) The department of health; 544
(6) The department of job and family services; 545
(7) The department of medicaid; 546
(8) The department of mental health and addiction 547
services; 548
(9) The opportunities for Ohioans with disabilities 549
agency; 550
(10) The department of children and youth. 551
(B) In revising eligibility standards and eligibility 552
determination procedures, a state agency shall not make any 553
program's eligibility standards or eligibility determination 554
procedures inconsistent with state or federal law. To the extent 555
authorized by state and federal law, the revisions may provide 556
for the state agencies to share administrative operations. 557
Sec. 122.01. (A) As used in the Revised Code, the 558
"development services agency" and the "department of 559
development" means the department of housing and development and 560
the "director of development services" and the "director of 561
development" means the director of housing and development. 562
Whenever the development services agency, department of 563
development, director of development, or director of development 564
services is referred to or designated in any statute, rule, 565
contract, grant, or other document, the reference or designation 566
shall be deemed to refer to the department of housing and 567
development or director of housing and development, as the case 568
may be. 569
(B) As used in this chapter: 570

(1) "Community problems" includes, but is not limited to, 571

S. B. No. 145 As Introduced

taxation, fiscal administration, governmental structure and 572
organization, intergovernmental cooperation, education and 573
training, employment needs, community planning and development, 574
air and water pollution, public safety and the administration of 575
justice, housing, mass transportation, community facilities and 576
services, health, welfare, recreation, open space, and the 577
development of human resources. 578
(2) "Professional personnel" means either of the 579
following: 580
(a) Personnel who have earned a bachelor's degree from a 581
college or university; 582
(b) Personnel who serve as or have the working title of 583
director, assistant director, deputy director, assistant deputy 584
director, manager, office chief, assistant office chief, or 585
program director. 586
(3) "Technical personnel" means any of the following: 587
(a) Personnel who provide technical assistance according 588
to their job description or in accordance with the Revised Code; 589
(b) Personnel employed in the director of housing and 590
development's office or the legal office, communications office, 591
finance office, legislative affairs office, or human resources 592
office of the department of housing and development; 593
(c) Personnel employed in the technology division of the 594
department. 595
Sec. 122.011. (A) The department of housing and 596
development shall develop and promote plans and programs 597
designed to assure that state resources are efficiently used, 598
economic growth is properly balanced, community growth is 599

S. B. No. 145 As Introduced

may do all of the following:	coordinated with each other and the state, and for such purposes		601
			602
	(l） Serve as a clearinghouse for information, data, and 603
	other materials that may be helpful or necessary to persons or
	local governments， as provided in section 122.073 of the Revised
Code;
			607
			(2） Prepare and activate plans for the retention, development, expansion, and use of the resources and commerce of 809
			the state, as provided in section 122.04 of the Revised Code; 609
governments and agencies of federal, state, and local			(3） Assist and cooperate with federal, state, and local 610 611
functions and duties of the department;
		(4） Encourage and foster research and development
problems, and develop recommendations for administrative or		activities, conduct studies related to the solution of community
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

S. B. No. 145 Page 23
As Introduced
the functions and duties of the department of housing and 629
development or for the solution of community problems; 630
(7) Coordinate the activities of state agencies that have 631
an impact on carrying out the functions and duties of the 632
department of housing and development; 633
(8) Encourage and assist the efforts of and cooperate with 634
local governments to develop mutual and cooperative solutions to 635
their common problems that relate to carrying out the purposes 636
of this section; 637
(9) Study existing structure, operations, and financing of 638
regional or local government and those state activities that 639
involve significant relations with regional or local 640
governmental units, recommend to the governor and to the general 641
assembly such changes in these provisions and activities as will 642
improve the operations of regional or local government, and 643
conduct other studies of legal provisions that affect problems 644
related to carrying out the purposes of this section; 645
(10) Create and operate a division of community 646
development to develop and administer programs and activities 647
that are authorized by federal statute or the Revised Code; 648
(11) Until October 15, 2007, establish fees and charges, 649
in consultation with the director of agriculture, for purchasing 650
loans from financial institutions and providing loan guarantees 651
under the family farm loan program created under sections 901.80 652
to 901.83 of the Revised Code; 653
(12) Provide loan servicing for the loans purchased and 654
loan guarantees provided under section 901.80 of the Revised 655
Code as that section existed prior to October 15, 2007; 656
(13) Until October 15, 2007, and upon approval by the 657

S. B. No. 145 As Introduced

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 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 housing and development may request 674
the attorney general to, and the attorney general, in accordance 675
with section 109.02 of the Revised Code, shall bring a civil 676
action in any court of competent jurisdiction. The director may 677
be sued in the director's official capacity, in connection with 678
this chapter, in accordance with Chapter 2743. of the Revised 679
Code. 680
(C) The director shall execute a contract pursuant to 681
section 187.04 of the Revised Code with the nonprofit 682
corporation formed under section 187.01 of the Revised Code, and 683
may execute any additional contracts with the corporation 684
providing for the corporation to assist the director or 685
department in carrying out any duties of the director or 686
department under this chapter, under any other provision of the 687

S. B. No. 145 As Introduced

Revised Code dealing with economic development, or under a 688
contract with the director, subject to section 187.04 of the 689
Revised Code. 690

Sec. 122.012. The director of housing and development may designate any governmental entity as an agency of the state to act within a specified region of the state for the purpose of creating and preserving jobs and employment opportunities and financing projects intended to create or preserve jobs and employment opportunities. Any such designation shall be in addition to agency designations made for such purpose by, or by the director pursuant to, Section 56.09 of H.B. 298 of the 119th general assembly, the provisions of which pertaining to such designations, and the designations so made, remain in full force and effect as continuing grants of authority. Each agency designated by or pursuant to Section 56.09 of H.B. 298 of the 119th general assembly or this section may exercise any statutory powers it has under any other section of the Revised Code to accomplish the purposes of this section within the agency's specified region. The regions served by agencies shall not overlap. The director may reduce, expand, or otherwise modify the region served by, or limit the authority of, any such agency.

Sec. 122.013. The department of housing and development 710
shall post the following on the official internet site of the 711
department: 712
(A) Annual reports of the progress and status of eligible 71
projects made as required under division (E) of section 122.0814 71
of the Revised Code; 71

(B) The annual report made by the director of housing and development under section 122.0817 of the Revised Code;

S. B. No. 145 As Introduced

(C) Reports made by the third frontier commission under 718
section 184.15 of the Revised Code; 719
(D) Information on all support awarded under section 720
184.11 of the Revised Code. 721
Sec. 122.014. (A) As used in this section, "gaming 722
activities" means activities conducted in connection with or 723
that include any of the following: 724
(1) Casino gaming, as authorized and defined in Section 725
6(C) of Article XV, Ohio Constitution; 726
(2) Casino gaming, as defined in division (E) of section 727
3772.01 of the Revised Code; or 728
(3) The pari-mutuel system of wagering as authorized and 729
described in Chapter 3769. of the Revised Code. 730
(B) The department of housing and development or any other 731
entity that administers any program or development project 732
established under Chapter 122., 166., or 184. of the Revised 733
Code or in sections section 149.311, 5709.87, or 5709.88 of the 734
Revised Code shall not provide any financial assistance, 735
including loans, tax credits, and grants, staffing assistance, 736
technical support, or other assistance to businesses conducting 737
gaming activities or for project sites on which gaming 738
activities are or will be conducted. 739
Sec. 122.02. The department of housing and development may 740
apply for, receive, and accept grants, gifts, contributions, 741
loans and any other assistance in any form from public and 742
private sources, including assistance from agencies and 743
instrumentalities of the United States and including the 744
application for, receipt, and acceptance, on behalf of this 745
state, of assistance from agencies and instrumentalities of the 746

S. B. No. 145 As Introduced

United States for the purposes of Chapter 122. of the Revised 747
Code except that nothing in this section prohibits the minority 748
business development division from exercising its authority 749
under section 122.93 of the Revised Code. The department shall 750
do all things necessary to apply for, receive, and administer 751
such assistance in accordance with the laws of Ohio. It may 752
contract or enter into agreements with any person, governmental 753
agency, or public or private organization, and any local or 754
regional agency or political subdivision of the state may 755
contract with it, to carry out the purposes of Chapter 122. of 756
the Revised Code. The department may require, in all contracts 757
for assistance stipulations that the contractors and any 758
subcontractors comply with requirements as to minimum wages, 759
hours of work, equal employment, and any other conditions which 760
the United States has attached to its financial aid to the 761
projects. 762
Sec. 122.03. The department of housing and development 763
shall: 764
(A) Maintain a continuing evaluation of existing research 765
facilities in the state and their relationship to orderly 766
econmic economic growth and the solution of community problems 767
of the state; 768
(B) Prepare and disseminate information relative to 769
research facilities in the state and their availability to 770
industrial activities and the solution of community problems; 771
(C) Prepare and recommend programs for the coordination of 772
research activities in the state and to assure the maximum use 773
of such facilities in the development of orderly economic growth 774
and the solution of community problems; 775

S. B. No. 145 As Introduced

(D) Cooperate with educational institutions in the 776
development of educational programs to train technical personnel 777
in the field of research and those other fields related to the 778
solution of community problems; 779
(E) Carry out continuing studies and analyses of the 780
problems and opportunities of communities, districts, and 781
regions within the state, and of multi-state regions of which 782
Ohio is a part. 783
Sec. 122.04. The department of housing and development 784
shall do the following: 785
(A) Maintain a continuing evaluation of the sources 786
available for the retention, development, or expansion of 787
industrial and commercial facilities in this state through both 788
public and private agencies; 789
(B) Assist public and private agencies in obtaining 790
information necessary to evaluate the desirability of the 791
retention, construction, or expansion of industrial and 792
commercial facilities in the state; 793
(C) Facilitate contracts between community improvement 794
corporations organized under Chapter 1724. of the Revised Code 795
or Ohio development corporations organized under Chapter 1726. 796
of the Revised Code and industrial and commercial concerns 797
seeking to locate or expand in the state; 798
(D) Upon request, consult with public agencies or 799
authorities in the preparation of studies of human and economic 800
needs or advantages relating to economic and community 801
development; 802
(E) Encourage, promote, and assist trade and commerce 803
between this state and foreign nations; 804

S. B. No. 145 As Introduced

(F) Promote and encourage persons to visit and travel 805
within this state; 806
(G) Maintain membership in the national association of 807
state development agencies; 808
(H) Assist in the development of facilities and 809
technologies that will lead to increased, environmentally sound 810
use of Ohio coal; 811
(I) Promote economic growth in the state. 812
Sec. 122.041. The director of housing and development 813
shall do all of the following with regard to the encouraging 814
diversity, growth, and equity program created under section 815
122.922 of the Revised Code: 816
(A) Conduct outreach, marketing, and recruitment of EDGE 817
business enterprises, as defined in that section; 818
(B) Provide business development services to EDGE business 819
enterprises in the developmental and transitional stages of the 820
program, including financial and bonding assistance and 821
management and technical assistance; 822
(C) Develop a mentor program to bring businesses into a 823
working relationship with EDGE business enterprises in a way 824
that commercially benefits both entities and serves the purpose 825
of the EDGE program; 826
(D) Establish processes by which an EDGE business 827
enterprise may apply for contract assistance, financial and 828
bonding assistance, management and technical assistance, and 829
mentoring opportunities. 830
Sec. 122.042. The director of housing and development may 831
found an employment opportunity program that encourages 832

S. B. No. 145 As Introduced

employers to employ individuals who are members of significantly 833
disadvantaged groups. If the director intends to found such an 834
employment opportunity program, the director shall adopt, and 835
thereafter may amend or rescind, rules under Chapter 119. of the 836
Revised Code to found, and to operate, maintain, and improve, 837
the program. In the rules, the director shall: 838
(A) Construct, and, as changing circumstances indicate, 839
re-construct, procedures according to which significantly 840
disadvantaged groups are identified as such, an individual is 841
identified as being a member of a significantly disadvantaged 842
group, and an employer is identified as being a potential 843
employer of an individual who is a member of a significantly 844
disadvantaged group; 845

(B) Describe, and, as experience indicates, re-describe, the kinds of evidence that shall be considered to identify significantly disadvantaged groups, the kinds of evidence an individual shall offer to prove that the individual is a member of a significantly disadvantaged group, and the kinds of evidence an employer shall offer to prove that the employer is a potential employer of an individual who is a member of a significantly disadvantaged group;

(C) Specify, and, as experience indicates, re-specify, 854
strategies and tactics for connecting individuals who are 855
members of significantly disadvantaged groups with potential 856
employers of members of significantly disadvantaged groups; and 857
(D) Construct, describe, specify, define, and prescribe 858
any other thing that is necessary and proper for the founding, 859
and for the successful and efficient operation, maintenance, and 860
improvement, of the employment opportunity program. 861

S. B. No. 145 As Introduced

In founding, and in operating, maintaining, and improving, 862
the employment opportunity program under the rules, the director 863
shall proceed so that the resulting program functions as a 864
coherent, efficient system for improving employment 865
opportunities for significantly disadvantaged groups. Examples 866
of significantly disadvantaged groups include individuals who 867
have not graduated from high school, individuals who have been 868
convicted of a crime, individuals who are disabled, and 869
individuals who are chronically unemployed (usually for more 870
than eighteen months). 871
Sec. 122.05. (A) The director of housing and development 872
may, to carry out the purposes of division (E) of section 122.04 873
of the Revised Code: 874
(1) Establish offices in foreign countries as the director 875
considers appropriate and enter into leases of real property, 876
buildings, and office space that are appropriate for these 877
offices; 878
(2) Appoint personnel, who shall be in the unclassified 879
civil services, necessary to operate such offices and fix their 880
compensation. The director may enter into contracts with foreign 881
nationals to staff the foreign offices established under this 882
section. 883
(3) The director may establish United States dollar and 884
foreign currency accounts for the payment of expenses related to 885
the operation and maintenance of the offices established under 886
this section. The director shall establish procedures acceptable 887
to the director of budget and management for the conversion, 888
transfer, and control of United States dollars and foreign 889
currency. 890

S. B. No. 145 As Introduced

(4) Provide export promotion assistance to Ohio businesses 891
and organize or support missions to foreign countries to promote 892
export of Ohio products and services and to encourage foreign 893
direct investment in Ohio. The director may charge fees to 894
businesses receiving export assistance and to participants in 895
foreign missions sufficient to recover the direct costs of those 896
activities. The director shall adopt, as an internal management 897
rule under section 111.15 of the Revised Code, a procedure for 898
setting the fees and a schedule of fees for services commonly 899
provided by the department. The procedure shall require the 900
director to annually review the established fees. 901
(5) Do all things necessary and appropriate for the 902
operation of the state's foreign offices. 903
(B) All contracts entered into under division (A)(2) of 904
this section and any payments of expenses under division (A)(3) 905
of this section related to the operation and maintenance of 906
foreign offices established under this section may be paid in 907
the appropriate foreign currency and are exempt from sections 908
127.16 and 5147.07 and Chapters 124., 125., and 153. of the 909
Revised Code. 910
Sec. 122.06. The department of housing and development 911
shall: 912
(A) Assemble, analyze, and make available to governmental 913
agencies and the public, information relative to the human, 914
natural, and economic resources and economic needs of the state; 915
(B) Prepare and maintain, in cooperation with departments 916
and agencies of the state, comprehensive plans and 917
recommendations for promotion of more desirable patterns of 918
growth and development of the resources of the state; 919

S. B. No. 145 As Introduced

(C) Assist in the coordination of development plans of 920
federal, state and local governments, regional and local 921
planning authorities, and private agencies; 922
(D) Provide planning assistance to state departments and 923
agencies, political subdivisions, county planning commissions, 924
regional planning units, councils of government, and local 925
governments of this state. Such planning assistance may be 926
rendered with respect to surveys, land use studies, urban 927
renewal plans, technical services and other planning work. In so 928
doing, the department may contract with municipal subdivisions, 929
with regional planning commissions, and with qualified persons, 930
firms, and agencies. 931
(E) Cooperate with federal agencies and authorities of 932
other states in the solution of community and development 933
problems which cross state lines; 934
(F) Recommend guidelines for the development and 935
management of new communities; 936
(G) Prepare and maintain rules concerning certification of 937
workable programs for impacted cities pursuant to division (C) 938
of section 1728.01 of the Revised Code, provided that the 939
department shall consult with officials of municipalities and 940
representatives of statewide organizations of such officials 941
prior to the preparation, adoption, or change of such rules. 942
Sec. 122.07. (A) There is hereby created within the 943
department of housing and development an office to be known as 944
the office of TourismOhio. The office shall be under the 945
supervision of a director who shall be of equivalent rank of 946
deputy director of the agency and shall serve at the pleasure of 947
the director of housing and development. 948

S. B. No. 145 As Introduced

(B) The office shall do both of the following: 949
(1) Promote the state as a destination for living, 950
learning, working, and traveling, and provide related services 951
or otherwise carry out the promotional functions or duties of 952
the department, as necessary; 953

(2) Perform an annual return-on-investment study analyzing the office's success in promoting Ohio. 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 housing and development services and the director of the office of TourismOhio on strategies for promoting tourism in this state as a destination for living, learning, working, and traveling. The board shall consist of the chief investment officer of the nonprofit corporation formed under section 187.01 of the Revised Code or the chief investment officer's designee, 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 972
September 28, 2012, appoint to the TourismOhio advisory board 973
one individual who is a representative of convention and 974
visitors' bureaus, one individual who is a representative of the 975
lodging industry, one individual who is a representative of the 976
restaurant industry, one individual who is a representative of 977
attractions, one individual who is a representative of special 978

S. B. No. 145 As Introduced

events and festivals, one individual who is a representative of 979
agritourism, and three individuals who are representatives of 980
the tourism industry. Of the initial appointments, two 981
individuals shall serve a term of one year, three individuals 982
shall serve a term of two years, and the remainder shall serve a 983
term of three years. Thereafter, terms of office shall be for 984
three years. Each individual appointed to the board shall be a 985
United States citizen. 986
(2) For purposes of division (B)(1) of this section, an 987
individual is a "representative of the tourism industry" if the 988
individual possesses five years or more executive-level 989
experience in the attractions, lodging, restaurant, 990
transportation, or retail industry or five years or more 991
executive-level experience with a destination marketing 992
organization. 993

(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 1006
as chairperson. 1007
(3) Members appointed to the board may be reimbursed for 1008

S. B. No. 145 As Introduced

actual and necessary expenses incurred in connection with their 1009
official duties. 1010
Sec. 122.073. (A) The department of housing and 1011
development services agency may do any of the following: 1012
(1) Disseminate information concerning the industrial, 1013
commercial, governmental, educational, cultural, recreational, 1014
agricultural, and other advantages and attractions of the state; 1015
(2) Provide technical assistance to public and private 1016
agencies in the preparation of promotional programs designed to 1017
attract business, industry, and tourists to the state; 1018
(3) Enter into cooperative or contractual agreements, 1019
through the director of housing and development services, with 1020
any individual, organization, or business to create, administer, 1021
or otherwise be involved with Ohio tourism-related promotional 1022
programs. Compensation under such agreements shall be determined 1023
by the director and may include deferred compensation. This 1024
compensation is payable from the tourism fund created in section 1025
122.072 of the Revised Code. Any excess revenue generated under 1026
such a cooperative or contractual agreement shall be remitted to 1027
the fund to be reinvested in ongoing tourism marketing 1028
initiatives as authorized by law. 1029
(B) The department of housing and development and the 1030
office of TourismOhio shall establish and implement a campaign 1031
to promote Ohio as a pro-housing state and to engage and educate 1032
Ohioans about the benefits of growth and innovation in housing 1033
1034
(C) Records related to tourism market research submitted 1035
1036
information taken for any purpose from such research, are not 1037

and economic development.

to or generated by the office of TourismOhio, and any

S. B. No. 145 As Introduced

public records for the purposes of section 149.43 of the Revised 1038
Code. The agency department may use, however, such tourism 1039

	market research in a public report if the director determines that issuing and distributing the report would promote or market
	1041 the state's travel and tourism industry or otherwise advance the 1042
purposes of this section.	1043
Sec. 122.075. (A) As used in this section:	1044
(l） "Alternative fuel" has the same meaning as in section	1045
125.831 of the Revised Code.	1046
(2） "Biodiesel" means a mono-alkyl ester combustible	1047
liquid fuel that is derived from vegetable oils or animal fats,	1048
or any combination of those reagents, and that meets American	1049
society for testing and materials specification D6751-03a for	1050
biodiesel fuel (Bloo） blend stock distillate fuels.	1051
suu s "uos u "g asta" ()	1052
in section 5735.01 of the Revised Code.	1053
(4） "Ethanol" means fermentation ethyl alcohol derived	1054
from agricultural products, including potatoes, cereal, grains,	1055
	1056
renewable resources, including residue and waste generated from	1057
the production, processing, and marketing of agricultural	1058
products, forest products, and other renewable resources that	1059
meet all of the specifications in the American society for	1060
testing and materials (ASTM) specification D 4806-88 and is	1061
denatured as specified in Parts 20 and 2l of Title 27 of the	1062
Code of Federal Regulations.	1063
(5） "Blended biodiesel" means diesel fuel containing at	1064
least twenty per cent biodiesel by volume.	1065

(6) "Blended gasoline" means gasoline containing at least

S. B. No. 145 As Introduced

eighty-five per cent ethanol by volume. 1067

(7) "Incremental cost" means either of the following: 1068
(a) The difference in cost between blended gasoline and 1069
gasoline containing ten per cent or less ethanol at the time 1070
that the blended gasoline is purchased; 1071
(b) The difference in cost between blended biodiesel an 1072
diesel fuel containing two per cent or less biodiesel at the 1073
time that the blended biodiesel is purchased. 1074
(B) For the purpose of improving the air quality in this 1075
state, the director of housing and development services shall 1076
establish an alternative fuel transportation program under which 1077
the director may make grants and loans to businesses, nonprofit 1078
organizations, public school systems, or local governments for 1079
the purchase and installation of alternative fuel refueling or 1080
distribution facilities and terminals, for the purchase and use 1081
of alternative fuel, to pay the cost of fleet conversion, and to 1082
pay the costs of educational and promotional materials and 1083
activities intended for prospective alternative fuel consumers, 1084
fuel marketers, and others in order to increase the availability 1085
and use of alternative fuel. 1086
(C) The director, in consultation with the director of 1087
agriculture, shall adopt rules in accordance with Chapter 119. 1088
of the Revised Code that are necessary for the administration of 1089
the alternative fuel transportation program. The rules shall 1090
establish at least all of the following: 1091
(1) An application form and procedures governing the 1092
application process for receiving funds under the program; 1093
(2) A procedure for prioritizing the award of grants and 1094
loans under the program. The procedures shall give preference to 1095

S. B. No. 145 As Introduced

all of the following: 1096
(a) Publicly accessible refueling facilities; 1097
(b) Entities applying to the program that have secured 1098
funding from other sources, including, but not limited to, 1099
private or federal incentives; 1100
(c) Entities that have presented compelling evidence of 1101
demand in the market in which the facilities or terminals will 1102
be located; 1103
(d) Entities that have committed to utilizing purchased or 1104
installed facilities or terminals for the greatest number of 1105
years; 1106
(e) Entities that will be purchasing or installing 1107
facilities or terminals for any type of alternative fuel. 1108
(3) A requirement that the maximum incentive for the 1109
purchase and installation of an alternative fuel refueling or 1110
distribution facility or terminal be eighty per cent of the cost 1111
of the facility or terminal, except that at least twenty per 1112
cent of the total cost of the facility or terminal shall be 1113
incurred by the recipient and not compensated for by any other 1114
source; 1115
(4) A requirement that the maximum incentive for the 1116
purchase of alternative fuel be eighty per cent of the cost of 1117
the fuel or, in the case of blended biodiesel or blended 1118
gasoline, eighty per cent of the incremental cost of the blended 1119
biodiesel or blended gasoline; 1120
(5) Any other criteria, procedures, or guidelines that the 1121
director determines are necessary to administer the program, 1122
including fees, charges, interest rates, and payment schedules. 1123

S. B. No. 145 As Introduced

(D) An applicant for a grant or loan under this section 1124
that sells motor vehicle fuel at retail shall agree that if the 1125
applicant receives funding, the applicant will report to the 1126
director the gallon or gallon equivalent amounts of alternative 1127
fuel the applicant sells at retail in this state for a period of 1128
three years after the project is completed. 1129
The director shall enter into a written confidentiality 1130
agreement with the applicant regarding the gallon or gallon 1131
equivalent amounts sold as described in this division, and upon 1132
execution of the agreement this information is not a public 1133
record. 1134

(E) There is hereby created in the state treasury the alternative fuel transportation fund. The fund shall consist of money transferred to the fund under division (B) of section 125.836 of the Revised Code, money that is appropriated to it by the general assembly, money as may be specified by the general assembly from the advanced energy fund created by section 4928.61 of the Revised Code, and all money received from the repayment of loans made from the fund or in the event of a default on any such loan. Money in the fund shall be used to make grants and loans under the alternative fuel transportation program and by the director in the administration of that program.

Sec. 122.077. For the purpose of promoting the use of 1147
energy efficient products to reduce greenhouse gas emissions in 1148
this state, the director of housing and development shall 1149
establish an energy star rebate program under which the director 1150
may provide rebates to consumers for household devices carrying 1151
the energy star label indicating that the device meets the 1152
energy efficiency criteria of the energy star program 1153

S. B. No. 145 As Introduced

established by the United States department of energy and the 1154
United States environmental protection agency. The director 1155
shall adopt rules under Chapter 119. of the Revised Code that 1156
are necessary for successful and efficient administration of the 1157
energy star rebate program and shall specify in the rules that 1158
grant availability is limited to federal stimulus funds or any 1159
other funds specifically appropriated for such a program. 1160
Sec. 122.08. (A) There is hereby created within the 1161
department of housing and development services agency an office 1162
to be known as the office of small business and 1163
entrepreneurship. The office shall be under the supervision of a 1164
manager appointed by the director of housing and development 1165
services. 1166
(B) The office shall do all of the following: 1167
(1) Act as liaison between the small business community 1168
and state governmental agencies; 1169
(2) Furnish information and technical assistance to 1170
persons and small businesses concerning the establishment and 1171
maintenance of a small business, and concerning state laws and 1172
rules relevant to the operation of a small business. In 1173
conjunction with these duties, the office shall keep a record of 1174
all proposed and currently effective state agency rules 1175
affecting small businesses, and may testify before the joint 1176
committee on agency rule review concerning any proposed rule 1177
affecting small businesses. 1178
(3) Prepare and publish the small business register under 1179
section 122.081 of the Revised Code; 1180
(4) Receive complaints from small businesses concerning 1181
governmental activity, compile and analyze those complaints, and 1182

S. B. No. 145 As Introduced

periodically make recommendations to the governor and the 1183
general assembly on changes in state laws or agency rules needed 1184
to eliminate burdensome and unproductive governmental regulation 1185
to improve the economic climate within which small businesses 1186
operate; 1187

(5) Receive complaints or questions from small businesses and direct those businesses to the appropriate governmental agency. If, within a reasonable period of time, a complaint is not satisfactorily resolved or a question is not satisfactorily answered, the office shall, on behalf of the small business, make every effort to secure a satisfactory result. For this purpose, the office may consult with any state governmental agency and may make any suggestion or request that seems appropriate.

1188
1189
1190
1191
1192
1193
1194
1195
1196
1197
1198
1199
1200
1201
1202
1203
1204
1205
1206
1207
1208
1209
1210
1211
1212

(6) Utilize, to the maximum extent possible, the printed and electronic media to disseminate information of current concern and interest to the small business community and to make known to small businesses the services available through the office. The office shall publish such books, pamphlets, and other printed materials, and shall participate in such trade association meetings, conventions, fairs, and other meetings involving the small business community, as the manager considers appropriate.

(7) Prepare a description of the activities of the office for inclusion in the development services agency's department's annual report to the governor and general assembly;

(8) Operate the Ohio first-stop business connection to assist individuals in identifying and preparing applications for business licenses, permits, and certificates and to serve as a public distributor for all forms, applications, and other

S. B. No. 145 As Introduced

	information related to business licensing. Each state agency,	1213
	board, and commission shall cooperate in providing assistance,	1214
	information, and materials to enable the connection to perform	1215
its duties under this division.		1216
	(9） Provide information to individuals about the resources	1217
		1218
	OhioMeansJobs one-stop systems established under section 6301.08	1219
	of the Revised Code that connect businesses with job seekers. As	1220
	used in this division, "ohioMeansJobs" has the Same meaning aS	1221
	in section 6301.01 of the Revised Code.	1222
	(C) The office may, upon the request of a state agency,	1223
	assist the agency with the preparation of any rule that will	1224
affect small businesses.		1225
	(D) The director of housing and development services-shall	1226
	assign employees and furnish equipment and supplies to the	1227
	office as the director considers necessary for the proper	1228
performance of the duties assigned to the office.		1229
	Sec. 122.081. (A) The office of small business and	1230
	entrepreneurship in the department of housing and_development	1231
	services agency shall prepare and publish a "small business	1232
	register" or contract with any person as provided in this	1233
	section to prepare and publish the register. The small business	1234
	register shall contain the following information regarding each	1235
	proposed rule recorded by the office of small business and	1236
entrepreneurship:		1237
	(l） The title and administrative code rule number of the	1238
proposed rule;		1239
	(2） A brief summary of the proposed rule;	1240
		1241

S. B. No. 145 As Introduced

the office of small business and entrepreneurship; and 1242
(4) The name, address, and telephone number of an 1243
individual or office within the agency department that proposed 1244
the rule who can provide information about the proposed rule. 1245
(B) The small business register shall be published on a 1246
weekly basis. The information required under division (A) of 1247
this section shall be published in the register no later than 1248
two weeks after the proposed rule to which the information 1249
relates is recorded by the office of small business and 1250
entrepreneurship. The office shall furnish the small business 1251
register, on a single copy or subscription basis, to any person 1252
who requests it and pays a single copy price or subscription 1253
rate fixed by the office. The office shall furnish the 1254
chairpersons of the standing committees of the senate and house 1255
of representatives having jurisdiction over small businesses 1256
with free subscriptions to the small business register. 1257
(C) Upon the request of the office of small business and 1258
entrepreneurship, the director of administrative services shall, 1259
in accordance with the competitive selection procedure of 1260
Chapter 125. of the Revised Code, let a contract for the 1261
compilation, printing, and distribution of the small business 1262
register. 1263
(D) The office of small business and entrepreneurship 1264
shall adopt, and may amend or rescind, in accordance with 1265
Chapter 119. of the Revised Code, such rules as are necessary to 1266
enable it to properly carry out this section. 1267
Sec. 122.082. The department of housing and development 1268
shall provide for low-interest loans to small businesses, as 1269
defined by rules adopted pursuant to the "Small Business Act," 1270

S. B. No. 145 As Introduced

72 Stat. 384 (1972), 15 U.S.C.A. 632, as amended, that are 1271
engaged in the export of goods produced in this state. In 1272
carrying out the purposes of this section, the department shall 1273
develop operating procedures that are essentially the same as 1274
those of the United States export-import bank. 1275

Sec. 122.083. (A) The director of housing and development shall administer a shovel ready sites program to provide grants for projects to port authorities and development entities approved by the director. Grants may be used to pay the costs of any or all of the following:

(1) Acquisition of property, including options; 1281
(2) Preparation of sites, including brownfield clean-up 1282
activities; 1283
(3) Construction of road, water, telecommunication, and 1284
utility infrastructure; 1285
(4) Payment of professional fees the amount of which shall 1286
not exceed twenty per cent of the grant amount for a project. 1287
(B) The director shall adopt rules in accordance with 1288
Chapter 119. of the Revised Code that establish procedures and 1289
requirements necessary for the administration of the program, 1290
including a requirement that a recipient of a grant enter into 1291
an agreement with the director governing the use of the grant. 1292
Sec. 122.085. As used in sections 122.085 to 122.0820 of 1293
the Revised Code: 1294
(A)(1) "Allowable costs" includes costs related to the 1295
following: 1296
(a) Acquisition of land and buildings; 1297

S. B. No. 145 s Introduced

(b) Building construction; 1298
(c) Making improvements to land and buildings, including 1299
the following: 1300
(i) Expanding, reconstructing, rehabilitating, remodeling, 1301
enovating, enlarging, modernizing, equipping, and furnishing 1302
uildings and structures, including leasehold improvements; 1303
(ii) Site preparation, including wetland mitigation. 1304
(d) Planning or determining feasibility or practicability; 1305
(e) Indemnity or surety bonds and premiums on insurance; 1306
(f) Remediation, in compliance with state and federal 1307
environmental protection laws, of environmentally contaminated 1308
roperty on which hazardous substances exist under conditions 1309
that have caused or would likely cause the property to be 1310
dentified as contaminated by the Ohio environmental protection 1311
agency or the United States environmental protection agency; 1312
(g) Infrastructure improvements, including the following: 1313
(i) Demolition of buildings and other structures; 1314
(ii) Installation or relocation of water, storm water and 1315
sanitary sewer lines, water and waste water treatment 1316
acilities, pump stations, and water storage mechanisms and 1317
other similar equipment or facilities; 1318
(iii) Construction of roads, bridges, traffic control 1319
devices, and parking lots and facilities; 1320
(iv) Construction of utility infrastructure such as 1321
atural gas, electric, and telecommunications, including 1322
roadband and hookups; 1323
(v) Water and railway access improvements; 1324

S. B. No. 145 As Introduced

(vi) Costs of professional services.		1325
	(2） "Allowable costs" do not include administrative costs	1326
	assessed by or fees paid to the recipient of a grant.	1327
	(B） "District public works integrating committees" means	1328
	those committees established under section 164.04 of the Revised	1329
Code.		1330
(C) "Eligible applicant" includes any political		1331
subdivision or non-profit_nonprofit economic development		1332
organization， and, with prior approval of the director of		1333
housing and development, private, for-profit entities. "Eligible		1334
applicant" does not include public or private institutions of		1335
higher education.		1336
		1337
Completion, will be sites and facilities primarily intended for		1338
commercial, industrial, or manufacturing use. "Eligible		1339
projects" do not include sites and facilities intended primarily		1340
for residential, retail, or government use.		1341
archeological, engineering, architectural, surveying, design, or		1342 1343
	other similar services performed in conjunction with an eligible	1344
	project. "Professional services" also includes designs, plans,
specifications, surveys, estimates of costs， and other work		1345
products.		1346 1347
	Sec. 122.086. (A) There is hereby created the job ready	1348
		1349
	eligible applicants for eligible projects. The program shall be	1350
	administered by the department of housing and development. All	1351
		1352

S. B. No. 145 As Introduced

(1) The annual competitive process under sections 122.087 1354
to 122.0811, 122.0814, and 122.0815 of the Revised Code; 1355

(2) The discretionary process under sections 122.0812 to 122.0815 of the Revised Code.

(B) The annual competitive process shall be administered by the department of housing and development pursuant to rules adopted by the director of housing and development under Chapter 119. of the Revised Code. The rules shall not establish criteria that have the effect of excluding applications for grants from any county of the state.

(C) The discretionary process shall be administered by the department of housing and development pursuant to guidelines established by the director of housing and development.

Sec. 122.087. The director of housing and development shall establish an annual competitive process for making grants described in section 122.086 of the Revised Code in accordance with rules adopted under that section. At least two-thirds of the amounts that may be distributed as grants each year under the job ready site program shall be distributed under the annual competitive process.

Sec. 122.088. In order to be considered for a grant under the annual competitive process, an eligible applicant shall fill out an application provided by the department of housing and development and shall file it with the district public works integrating committee with jurisdiction over the area in which the eligible project is located.

Sec. 122.089. An eligible applicant shall provide all of the following on the annual competitive process application:

(A) Contact information for the eligible applicant;

S. B. No. 145 Page 49
As Introduced
(B) A legal description of the property for which the 1383
grant is requested; 1384
(C) A summary of the proposed eligible project that 1385
includes all of the following: 1386
(1) A general description of the eligible project, 1387
including individuals, organizations, or other entities that 1388
will play a critical role in the implementation of the project; 1389
(2) An explanation of the need for the eligible project, 1390
and the predicted economic impact; 1391
(3) An explanation of the need for a grant from the job 1392
ready site program; 1393
(4) The commitments required pursuant to division (A)(3) 1394
of section 122.0815 of the Revised Code. 1395
(D) A detailed summary of costs for the eligible project, 1396
including supporting documents for cost estimates; 1397
(E) Sources of funding for the eligible project, including 1398
documentation verifying the status of those funds; 1399
(F) Summary results of preliminary engineering studies and 1400
environmental reviews, if any have been conducted; 1401
(G) A comprehensive marketing plan detailing how the 1402
eligible project will be marketed upon completion, if 1403
appropriate; 1404
(H) Copies of resolutions or ordinances related to the 1405
eligible project, including resolutions or ordinances adopted by 1406
the political subdivision with jurisdiction over the geographic 1407
area in which the eligible project is located; 1408
(I) Any other information the director of housing and 1409

S. B. No. 145 As Introduced

development requests on the application form.

Sec. 122.0810. (A) Each application for a grant pursuant to the annual competitive process received by a district public works integrating committee shall be evaluated by the executive committee of the district committee. In conducting the evaluation, the executive committee shall determine whether the application for the proposed eligible project is complete and whether the project meets the requirements of section 122.0815 of the Revised Code. If the application is complete and the eligible project meets the requirements of section 122.0815 of the Revised Code, the executive committee shall prioritize the eligible project pursuant to section 122.0816 of the Revised Code and pursuant to local priorities, as those priorities are determined by the executive committee, with all other eligible projects with complete applications that meet the requirements of section 122.0815 of the Revised Code. If the application is incomplete or the project does not meet the requirements of section 122.0815 of the Revised Code, the executive committee shall notify the applicant of the deficiencies and the period of time the applicant has to correct the deficiencies and submit the corrections to the executive committee. Failure to correct deficiencies within the time designated by the executive committee shall disqualify the project from consideration for a grant during the annual competitive process for that year.

The executive committee, by the affirmative vote of a 143
majority of all its members, shall select up to three eligible 143
projects from the projects it has prioritized each year pursuant 143
to the annual competitive process. The executive committee shall 143
forward the applications and any accompanying information for 143
each of the selected eligible projects to the department of 143
housing and development in the time and manner required by the 144

S. B. No. 145 As Introduced

rules governing the annual competitive process for the job ready 1441
site program. 1442

(B) For a district public works integrating committee that does not have an executive committee, the full committee shall perform the functions assigned to the executive committee under section 122.0816 of the Revised Code and division (A) of this section.

(C) An executive committee, or a district committee that does not have an executive committee, may appoint a working group of committee members and staff to perform the functions of those committees as provided in this section.

Sec. 122.0811. The department of housing and development 1452
shall evaluate each eligible project selected pursuant to 1453
section 122.0810 of the Revised Code to determine whether the 1454
application for the proposed eligible project is complete and 1455
whether it meets the requirements of section 122.0815 of the 1456
Revised Code. If the application is complete and the project 1457
meets the requirements of section 122.0815 of the Revised Code, 1458
the department shall notify the eligible applicant that the 1459
application is complete and shall prioritize the eligible 1460
project pursuant to section 122.0816 of the Revised Code with 1461
all other eligible projects with complete applications that meet 1462
the requirements. If the application is incomplete or the 1463
project does not meet the requirements of section 122.0815 of 1464
the Revised Code, the department shall notify the applicant of 1465
the deficiencies and the period of time the applicant has to 1466
correct the deficiencies and submit the corrections to the 1467
department. Failure to correct deficiencies within the time 1468
designated by the department shall disqualify the project from 1469
consideration for a grant during the annual competitive process 1470

S. B. No. 145 As Introduced

for that year. 1471

The director, on completion of the evaluations and 1472
prioritization, shall make a recommendation to the controlling 1473
board asking for approval to make grants for the eligible 1474
projects selected by the director. The director shall take into 1475
consideration the geographic diversity of awards when making the 1476
selection of eligible projects to receive grants. 1477

Sec. 122.0812. The director of housing and development shall establish a discretionary process that permits the director to make grants described in section 122.086 of the Revised Code in situations that include those in which the timing of a proposed eligible project is such that the annual competitive process is not suitable. The director, as part of the guidelines established for the discretionary process for the job ready site program, shall establish all the procedures and requirements governing application for the discretionary grants.

Sec. 122.0813. On receipt of an application for a 1487
discretionary grant for an eligible project, the director of 1488
housing and development shall evaluate it to determine whether 1489
the application for the proposed eligible project is complete 1490
and whether the eligible project meets the requirements of 1491
section 122.0815 of the Revised Code. If the application is 1492
complete and the project meets the requirements of section 1493
122.0815 of the Revised Code, the director shall make a 1494
recommendation to the controlling board asking for approval to 1495
make the discretionary grant for the eligible project. If the 1496
application is incomplete or the project does not meet the 1497
requirements of section 122.0815 of the Revised Code, the 1498
department shall notify the applicant of the deficiencies and 1499
work with the applicant to correct the deficiencies. If the 1500

S. B. No. 145 As Introduced

deficiencies are corrected, the director shall make a 1501
recommendation to the controlling board asking for approval to 1502
make the discretionary grant for the eligible project. 1503
Sec. 122.0814. If the controlling board approves a grant 1504
for an eligible project pursuant to the annual competitive 1505
process or the discretionary process, the director of housing 1506
and development shall enter into an agreement with the eligible 1507
applicant to provide the grant for the project. The agreement 1508
shall be executed prior to the payment or disbursement of any 1509
funds under the grant and shall contain the following 1510
provisions: 1511
(A) A designation of a single officer or employee of the 1512
eligible applicant who will serve as the manager of the eligible 1513
project; 1514
(B) A detailed description of the scope of the work 1515
required under the eligible project, including anticipated 1516
sources and uses of funds; 1517
(C) A designation of the percentage of the estimated total 1518
cost of the project for which the grant will provide funding, 1519
which shall not exceed seventy-five per cent of the cost; 1520
(D) Provisions for the recovery by the department of 1521
housing and development of grant funds for failure to meet the 1522
terms of the agreement; 1523
(E) A requirement that annual reports be made by the 1524
eligible applicant on the progress of the eligible project and 1525
any other information about the status of the project as 1526
required by the guidelines and rules established for the job 1527
ready site program; 1528
(F) Any other provisions the director determines 1529

S. B. No. 145 As Introduced

necessary.

Sec. 122.0815. (A) A project shall meet the following 1531
requirements in order to be considered for a grant under the 1532
annual competitive process: 1533
(1) The application for the grant is made by an eligible 1534
applicant. 1535
(2) The project for which the application is made is an 1536
eligible project. 1537
(3) The eligible applicant commits to all the following: 1538
(a) To use the grant to pay only allowable costs for the 1539
eligible project; 1540
(b) Not to use the grant to fund more than seventy-five 1541
per cent of the total cost of the eligible project; 1542
(c) Not to use more than ten per cent of the grant amount 1543
to pay the costs of professional services under the eligible 1544
project. 1545
(4) The grant amount requested does not exceed five 1546
million dollars. 1547
(5) The eligible applicant and the eligible project comply 1548
with any other criteria the director of housing and development 1549
determines is necessary. 1550
(B) A project shall meet the requirements described in 1551
divisions (A)(1) to (4) of this section in order to be 1552
considered for a grant under the discretionary process. 1553
Sec. 122.0816. The department of housing and development 1554
and the executive committees of district public works 1555

integrating committees shall apply the following factors to 1556

S. B. No. 145 As Introduced

eligible projects under the annual competitive process to 1557
determine a priority order for the eligible projects subject to 1558
that process: 1559
(A) The potential economic impact of the eligible project; 1560
(B) The potential impact of the eligible project on 1561
economic distress; 1562
(C) The amount of local, federal, and private funding 1563
available for the eligible project; 1564
(D) The demonstrated need for the eligible project; 1565
(E) The strength of the eligible project's marketing plan, 1566
if appropriate; 1567
(F) The level of financial need; 1568
(G) Any other factor the director of housing and 1569
development determines should be considered. 1570
Sec. 122.0817. In accordance with the guidelines 1571
established to govern the discretionary process and the rules 1572
adopted to govern the annual competitive process for the job 1573
ready site program, the director of housing and development 1574
shall publish an annual report that includes the following: 1575
(A) Details on each grant awarded pursuant to the program; 1576
(B) The status of projects funded in previous years; 1577
(C) The amount of grants awarded for projects in 1578
economically distressed areas and, to the extent possible, the 1579
impact of those grants in those areas. 1580
Sec. 122.09. (A) As used in this section: 1581
1582

(1) "Development costs" means expenditures paid or

S. B. No. 145 As Introduced

incurred by the property owner in completing a certified	1583
transformational mixed use development project， including	1584
architectural or engineering fees paid or incurred in connection	1585
	1586
	1587
(C） of this section. In the case of a certified transformational	1588
mixed use development project that is part of a larger	1589
	1590
"development costs" include only expenditures associated with	1591
the portion of the project that is certified by the tax credit	1592
authority and do not include expenditures incurred for other	1593
phases of the project.	1594
(2） "owner" means a person or persons holding a fee simple	1595
	1596
	1597
"Owner" does not include the state or a state agency, or any	1598
political subdivision as defined in section 9.23 of the Revised	1599
Code. For the purpose of this division, "fee simple interest,"	1600
	1601
accordance with generally accepted accounting principles.	1602
(3) "Transformational mixed use development" means a	1603
project that consists of new construction or the redevelopment,	1604
rehabilitation, expansion, or other improvement of vacant	1605
buildings or structures, or a combination of the foregoing, and	1606
that:	1607
(a） Will have a transformational economic impact on the	1608
development site and the surrounding area;	1609
(b） Integrates some combination of retail， office,	1610
residential, recreation, structured parking, and other similar	1611
uses into one mixed use development; and	1612

S. B. No. 145 As Introduced

	(c） Satisfies one of the following criteria:	1613
	(i） If the development site is located within ten miles of	1614
	a major city, the project includes at least one new or	1615
	oi i o	1616
	height or has a floor area of at least three hundred fifty	1617
	thousand square feet, or after completion will be the site of	1618
	employment accounting for at least four million dollars in	1619
	annual payroll, or includes two or more buildings that are	1620
		1621
at least three hundred fifty thousand square feet;	o oo u oo ' soo	1622 1623
	(ii） If the development site is not located within ten	1624
	miles of a major city, the project includes at least one new or	1625
		1626
	or has a floor area of at least seventy-five thousand square	1627
		1628
	parcel or on contiguous parcels and that collectively have a	1629
	g s o -s as a a o	1630
	"Transformational mixed use development" may include a	1631
		1632
	completed in phases as long as the phases collectively meet the criteria described in division (A)(3） of this section.	1633
		1634
	positive, of the amount of state and local taxes derived from	1635
		1636
	economic activity occurring within the development site and the	1637
	surrounding area during a period of time minus the amount of	1638
	such taxes that are estimated to be derived from such economic	1639
		1640
	period if the transformational mixed use project were not	1641
completed.		1642

S. B. No. 145 As Introduced

	1643
the day after a transformational mixed use development is	1644
certified by the tax credit authority and ending on the fifth	1645
anniversary of the day the project is completed.	1646
aua o oaqns uosad suau "ueduoo ounsu (9)	1647
imposed under section 5725.18 or 5729.03 of the Revised Code.	1648
(7） "Contribute capital" means to invest, loan, or donate	1649
og	1650
instrument, or no consideration.	1651
uooo " o ()	1652
population greater than one hundred thousand.	1653
(9） "Tax credit authority" means the tax credit authority	1654
created under section 122.17 of the Revised Code.	1655
(10) "Adjusted development costs" means the development	1656
costs attributed to a complete transformational mixed use	1657
development project minus the sum of the capital contributions	1658
of any insurance companies that are preliminarily approved for a	1659
tax credit in connection with the same project.	1660
(	1661
collections equals the product obtained by multiplying the total	1662
increase in tax collections since the date the transformational	1663
mixed use development project was certified by a fraction, the	1664
numerator of which is the adjusted development costs and the	1665
denominator of which is the actual development costs attributed	1666
to the project.	1667
, s ()	1668
collections equals the product obtained by multiplying the total	1669
increase in tax collections since the date the transformational	1670
mixed use development project was certified by a fraction， the	1671

S. B. No. 145 As Introduced

numerator of which is the insurance company's capital 1672
contribution to the project and the denominator of which is the 1673
actual development costs attributed to the project. 1674
(B) The owner of one or more parcels of land in this state 1675
within which a transformational mixed use development is planned 1676
or an insurance company that contributes capital to be used in 1677
the planning or construction of such a development may apply to 1678
the tax credit authority for certification of the development 1679
and preliminary approval of a tax credit. Each application shall 1680
be filed in the form and manner prescribed by the director of 1681
housing and development and shall, at minimum, include a 1682
development plan comprised of all of the following information: 1683
(1) The location of the development site and an indication 1684
of whether it is located within ten miles of a major city; 1685
(2) A detailed description of the proposed 1686
transformational mixed use development including site plans, 1687
construction drawings, architectural renderings, or other means 1688
sufficient to convey the appearance, size, purposes, capacity, 1689
and scope of the project and, if applicable, previously 1690
completed and future phases of the project; 1691
(3) A viable financial plan that estimates the development 1692
costs that have been or will be incurred in the completion of 1693
the project and that designates a source of financing or a 1694
strategy for obtaining financing; 1695
(4) An estimated schedule for the progression and 1696
completion of the project including, if applicable, previously 1697
completed and future phases of the project; 1698
(5) An assessment of the projected economic impact of the 1699
project on the development site and the surrounding area; 1700

S. B. No. 145 As Introduced

	nce that the increase in tax collections during	1701
	period will exceed ten per cent of the estimated	1702
	ts reported under division (B)(3） of this	1703
		1704
	u uo s	1705
	ner, the amount of the insurance company's	1706
	ution to the development and the date on which it	1707
made;		1708
	nce that the project will not be completed unless	1709
eceives the credit.		1710
	determining whether to certify a project that is	1711
	an application submitted under division (B) of	1712
	he tax credit authority shall consider the	1713
	t of the transformational mixed use development	1714
	ent site and the surrounding area in terms of	1715
	ccessibility to pedestrians, retail entertainment	1716
	S, job creation, property values, connectivity,	1717
	m sales, income, lodging, and property taxes. The	1718
	ority shall not certify a project unless it	1719
ollowing conditions:		1720
	roject qualifies as a transformational mixed use	1721
	l satisfies all other criteria prescribed by this	1722
	ule of the director of housing and development;	1723
	stimated increase in tax collections during the	1724
	od exceeds ten per cent of the estimated	1725
	ts for the project reported under division (B)(3)	1726
1		1727
edit;	roject will not be completed unless the applicant	1728 1729

S. B. No. 145 As Introduced

(d) If the development site is located within ten miles of 1730
a major city, the estimated development costs to complete the 1731
project plus, if applicable, the estimated expenditures that 1732
have been or will be incurred to complete all other contiguous 1733
phases of the project, exceed fifty million dollars. 1734
In making its determination of whether or not to approve 1735
an application, the tax credit authority may conduct an 1736
interview of the applicant. 1737

(2) If the tax credit authority approves an application, the authority shall issue a statement certifying the associated transformational mixed use development project and preliminarily approving a tax credit. The statement shall stipulate that receipt of a tax credit certificate is contingent upon completion of the transformational mixed use development as described in the development plan. The statement shall specify the estimated amount of the tax credit, but state that the amount of the credit is dependent upon determination of the actual development costs attributed to the project and, unless the tax credit authority grants a request by the property owner under division (F) of this section, of the increase in tax collections during the completion period.

(3) Except as otherwise provided in this division, if the 1751
applicant is an insurance company that is not the property 1752
owner, the estimated amount of the tax credit shall equal ten 1753
per cent of the insurance company's capital contribution to the 1754
project as reported in the development plan pursuant to division 1755
(B)(7) of this section. Except as otherwise provided in this 1756
division, if the applicant is the property owner, the estimated 1757
amount of the tax credit shall equal ten per cent of the 1758
estimated development costs for the project as reported in the 1759
S. B. No. 145 Page 62
As Introduced
development plan pursuant to division (B)(3) of this section 1760
minus any estimated credit amounts that have been preliminarily 1761
approved for insurance companies contributing capital to the 1762
project. The estimated credit amounts may be reduced by the tax 1763
credit authority as a condition of certifying the project if 1764
such a reduction is necessary to comply with the limitations on 1765
the amount of credits that may be preliminarily approved as 1766
prescribed by division (C)(5) of this section. The estimated 1767
credit amounts shall not be adjusted after the statement 1768
described in division (C)(2) of this section has been issued. 1769
(4) If the tax credit authority denies an application, the 1770
authority shall notify the applicant of the reason or reasons 1771
for such determination. The authority's determination is final, 1772
but an applicant may revise and resubmit a previously denied 1773
application. 1774
(5)(a) The tax credit authority shall not certify any 1775
transformational mixed use development projects after June 30, 1776
2025. 1777
(b) The tax credit authority may not preliminarily approve 1778
more than one hundred million dollars of estimated tax credits 1779
in each of fiscal years 2022, 2023, 2024, and 2025. 1780
(c) Not more than eighty million dollars of estimated tax 1781
credits in each such fiscal year may be preliminarily approved 1782
in connection with projects that are located within ten miles of 1783
a major city. 1784
(d) Not more than forty million dollars of estimated tax 1785
credits may be preliminarily approved in connection with the 1786
same transformational mixed use development project. 1787
(6) If the dollar amount of tax credits applied for under 1788

S. B. No. 145 As Introduced

division (B) of this section in connection with projects that 1789
are located within ten miles of a major city exceeds eighty 1790
million dollars for a fiscal year, the tax credit authority 1791
shall rank those applications and certify the associated 1792
projects in order, starting with the project that presents the 1793
best combination of economic value and transformational impact. 1794
If the dollar amount of tax credits applied for in connection 1795
with projects not located within ten miles of a major city 1796
exceeds twenty million dollars for a fiscal year, the tax credit 1797
authority shall rank those applications and certify the 1798
associated projects in order, starting with the project that 1799
presents the best combination of economic value and 1800
transformational impact. In either case, the authority shall 1801
consider the following factors in ranking the applications: 1802
(a) The projected increase in tax collections during the 1803
completion period as a percentage of the total amount of 1804
estimated tax credits that would be preliminarily approved in 1805
connection with the project; 1806
(b) The economic impact of the project on the development 1807
site and the surrounding area and the impact of the project in 1808
terms of architecture, accessibility to pedestrians, retail 1809
entertainment and dining sales, job creation, property values, 1810
and connectivity; 1811
(c) The expeditiousness of the schedule for completing the 1812
project, realizing the increase in tax collections, and 1813
attaining the economic and other impacts on the development site 1814
and the surrounding area. 1815
(D) Within twelve months of the date a project is 1816
certified, the property owner shall provide the tax credit 1817
authority with an updated schedule for the progression and 1818

S. B. No. 145 As Introduced

completion of the project and documentation sufficient to demonstrate that construction of the project has begun. If the property owner does not provide the schedule and documentation or if construction of the project has not begun within the time prescribed by this division, the tax credit authority shall rescind certification of the project and send notice of the rescission to the property owner and each insurance company that is preliminarily approved for a tax credit in connection with the project. A property owner that receives notice of rescission may submit a new application concerning the same project under division (B) of this section.

1819
1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1830
1831
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1849

(E) An applicant that is the property owner and is preliminarily approved for a tax credit under this section may sell or transfer the rights to that credit to one or more persons for the purpose of raising capital for the certified project. The applicant shall notify the tax credit authority upon selling or transferring the rights to the credit. The notice shall identify the person or persons to which the credit was sold or transferred and the credit amount sold or transferred to each such person. Only an applicant that owns the property may sell or transfer a credit under this division. A credit may be divided among multiple purchasers through more than one transaction but once a particular credit amount is acquired by a person other than the applicant it may not be sold or transferred again.

(F) After a transformational mixed use development project is certified and before it is completed, the property owner may request that the value of the tax credit certificates awarded in connection with the project be computed using the alternative method described in division (I) of this section. The tax credit authority shall grant the request if the authority determines,

S. B. No. 145 As Introduced

		1850
	property owner affirms, that it is reasonably certain that the	1851
		1852
		1853
	completed. Otherwise, the authority shall deny the request and	1854
	the amount of each credit awarded in connection with the project	1855
	shall be computed under division (H) of this section. The	1856
	authority's determination under this division shall be delivered	1857
	in writing and is final and not appealable.	1858
	((	1859
		1860
	use development project. The notification shall include a report	1861
	prepared by a third-party certified public accountant that	1862
	contains a detailed accounting of the actual development costs	1863
attributed to the project.		1864
	(	1865
	authority has previously granted a request by the property owner	1866
	under division (F） of this section, the authority shall	1867
	determine the increase in tax collections since the date the	1868
		1869
	o	1870
	levies an income tax within the project site and the surrounding	1871
		1872
	consulted pursuant to this division shall provide the tax credit	1873
	authority with any information that is necessary to determine	1874
the increase in tax collections.		1875
(3） After determining the increase in tax collections		1876
	under division (G)(2） of this section， if required, and	1877
	computing the value of the tax credit under division (H)or (I)	1878

of this section, as applicable, the tax credit authority shall 1879

S. B. No. 145 As Introduced

issue a tax credit certificate to each applicant that is 188
preliminarily approved for a credit associated with the project 188
or to the person or persons to which such an applicant sold or 188
transferred the rights to the credit under division (E) of this 188
section. If the amount of the tax credit awarded to the property 188
owner is less than the credit amount estimated under division 188
(C) of this section and the property owner sold or transferred 188
the rights to the credit, the tax credit authority shall reduce 188
the amount of each tax credit certificate issued to each 188
purchaser or recipient on a pro rata basis unless the property 188
owner requests an alternative allocation of the credit. 189
(H)(1) Unless the tax credit authority granted a request 1891
by the property owner under division (F) of this section, the 1892
aggregate value of the tax credit certificates issued under 1893
division (G) of this section to the property owner and to any 1894
persons to whom the property owner sold or transferred the 1895
rights to the credit shall equal the lesser of the following: 1896
(a) Ten per cent of the adjusted development costs; 1897
(b) Five per cent of the adjusted development costs plus 1898
any amount by which the property owner's share of the increase 1899
in tax collections since the date the project was certified 1900
exceeds five per cent of the adjusted development costs; 1901
(c) The estimated credit amount specified in the tax 1902
credit authority's statement certifying the project and 1903
preliminarily approving the tax credit under division (C) of 1904
this section. 1905
(2) The value of a tax credit certificate issued under 1906
division (G) of this section to an insurance company that 1907
contributed capital to the project shall equal the lesser of the 1908

S. B. No. 145 As Introduced

following: 1909

(a) Ten per cent of the insurance company's actual capital 1910

contribution; 1911

(b） Five per cent of such capital contribution plus any 1912

a n m 1913

tax collections since the date the project was certified exceeds 1914

five per cent of the insurance company's capital contribution; 1915

(c） The estimated credit amount specified in the tax 1916

credit authority's statement certifying the project and 1917

() ut 1918

this section. 1919

(I） If the tax credit authority granted a request by the 1920

property owner under division (F) of this section, the value of 1921

the tax credit certificates issued in connection with the 1922

transformational mixed use development project shall be computed 1923

asfollows: 1924

d () 1925

' o 1926

per cent of the actual development costs attributed to the 1927

project. If the amount of the credit is less than the credit 1928

amount estimated under division (C） of this section and the 1929

property owner sold or transferred the rights to the credit to 1930

more than one person, the authority shall reduce the amount of 1931

each tax credit certificate on a pro rata basis unless the 1932

1933

(2） For an insurance company that contributed capital to 1934 1935

the project, ten per cent of the insurance company's actual capital contribution. 1936

(J） If the value of a tax credit certificate was computed 1937

S. B. No. 145 As Introduced

under division (H) of this section for a project, the property 1938
owner, on or before the thirtieth day following the first, 1939
second, third, fourth, and fifth anniversaries of the date the 1940
certified transformational mixed use development project is 1941
completed, may request in writing that the tax credit authority 1942
update the increase in tax collections during the completion 1943
period. Upon receiving such a request, the tax credit authority 1944
shall update the increase in tax collections in the same manner 1945
described by division (G) of this section. If the tax credit 1946
authority determines that the value of the tax credit 1947
certificates computed under division (H) of this section would 1948
be greater if computed based on the updated increase in tax 1949
collections, the authority shall issue an additional tax credit 1950
certificate to each person that previously received a 1951
certificate for the project under those divisions. The value of 1952
each additional tax credit certificate shall equal the amount by 1953
which the tax credit certificate computed under division (H) of 1954
this section upon completion of the project would have been 1955
greater had the value of such certificate been computed based on 1956
the updated increase in tax collections, less the value of any 1957
additional tax credit certificates previously issued under this 1958
division to the same person respecting the same project. 1959
(K) The aggregate value of all tax credit certificates 1960
issued under this section for the same transformational mixed 1961
use development project shall not exceed (1) ten per cent of the 1962
actual development costs of that project or (2) the sum of all 1963
estimated credit amounts preliminarily approved by the tax 1964
credit authority in connection with the project. 1965
(L) Issuance of a tax credit certificate under this 1966
section does not represent a verification or certification by 1967
the tax credit authority of the actual development costs of the 1968

S. B. No. 145 As Introduced

project or the capital contributions to the project by an 1969
insurance company. Such amounts are subject to inspection and 1970
examination by the superintendent of insurance. 1971

(M) Upon the issuance of a tax credit certificate under division (G) or (J) of this section, the tax credit authority shall certify to the superintendent of insurance (1) the name of each person that was issued a tax credit certificate, (2) whether the person is the property owner, an insurance company that contributed capital to the development, or a person that acquired the rights to the tax credit certificate from the property owner, (3) the credit amount shown on each tax credit certificate, and (4) any other information required by the rules adopted under this section. A person that holds the rights to a tax credit certificate issued under this section and that is an insurance company may claim a tax credit under section 5725.35 or 5729.18 of the Revised Code.

(N) The tax credit authority shall publish information 1985
about each transformational mixed use development on the web 1986
site of the department of housing and development not later than 1987
the first day of August following certification of the project. 1988
The tax credit authority shall update the published information 1989
annually until the project is complete and the credit or credits 1990
are fully claimed. The published information shall include all 1991
of the following: 1992
(1) The location of the transformational mixed use 1993
development and the name by which it is known; 1994
(2) The estimated schedule for progression and completion 1995
of the project included in the development plan pursuant to 1996
division (B)(4) of this section; 1997

S. B. No. 145 As Introduced

(3) The assessment of the projected economic impact of the 1998
project included in the development plan pursuant to division 1999
(B)(5) of this section; 2000
(4) The evidence supporting the estimated increase in tax 2001
collections included in the development plan pursuant to 2002
division (B)(6) of this section, except that the tax credit 2003
authority may omit any proprietary or sensitive information 2004
included in such evidence; 2005
(5) The estimated development costs that have been or will 2006
be incurred in completion of the project and, if applicable, the 2007
amount of the insurance company's capital contribution to the 2008
development and the date on which it was made, as reported in 2009
the development plan pursuant to divisions (B)(3) and (7) of 2010
this section; 2011
(6) A copy of each report submitted to the tax credit 2012
authority by the applicant under division (D) of this section. 2013
(O) The director, in accordance with Chapter 119. of the 2014
Revised Code, shall adopt rules that establish all of the 2015
following: 2016
(1) Forms and procedures by which applicants may apply for 2017
a transformational investment tax credit, and any deadlines for 2018
applying; 2019
(2) Criteria and procedures for reviewing, evaluating, 2020
ranking, and approving applications within the limitations 2021
prescribed by this section, including rules prescribing the 2022
timing and frequency by which the tax credit authority must rank 2023
applications and preliminarily approve tax credits under 2024
division (C) of this section; 2025
(3) Eligibility requirements for obtaining a tax credit 2026

S. B. No. 145 As Introduced

certificate under this section; 2027
(4) The form of the tax credit certificate; 2028
(5) Reporting requirements and monitoring procedures; 2029
(6) Procedures for computing the increase in tax 2030
collections within the project site and the surrounding area; 2031
(7) Forms and procedures by which property owners may 2032
request the alternative method of computing the value of tax 2033
credit certificates under division (I) of this section that are 2034
awarded in connection with a project and criteria for evaluating 2035
and making a determination on such requests; 2036
(8) Any other rules necessary to implement and administer 2037
this section. 2038
Sec. 122.10. Each department, bureau, institution, agency, 2039
commission, or office of the state government, shall, upon 2040
request, furnish to the department of housing and development 2041
any information it has available. 2042
The department of housing and development shall cooperate 2043
with each department, bureau, institution, agency, commission, 2044
or office of the state government and shall furnish any 2045
information it has available to such departments, bureaus, 2046
institutions, agencies, commissions, or office upon their 2047
request. 2048
The department shall coordinate its services and 2049
activities with those of state departments, bureaus, agencies, 2050
commissions, and offices to the fullest extent possible in order 2051
to avoid duplication. 2052
Sec. 122.11. The director of housing and development may 2053
employ and fix the compensation of technical and professional 2054

S. B. No. 145 As Introduced

personnel, who shall be in the unclassified civil service, and

2055 may employ other personnel, who shall be in the classified civil 2056

service, as necessary to carry out the provisions of sections 2057

122.011 to 122.1l, 122.17， and 122.18 of the Revised Code. 2058

Sec. 122.121. (A） A local organizing committee, endorsing 2059

municipality， or endorsing county that has entered into a 2060

joinder undertaking with a site selection organization may apply 2061

to the director of housing and_development-services， on a form 2062

and in the manner prescribed by the director, for a grant from 2063

the sports event grant fund created under section 122.122 of the 2064

2065

following applies: 2066

2067

game. 2068

(2） The game is a one-time centennial commemoration of the 2069

founding of a national football organization, association, or 2070

league. 2071

The amount of the grant shall be based on the projected 2072

incremental increase in the receipts from the tax imposed under 2073

section 5739.02 of the Revised Code within the market area 2074

2075

2076

the game will be held, that is directly attributable, as 2077

2078

presentation of the game. The director shall determine the 2079

s o 2080

5739.02 of the Revised Code by using a formula approved by the 2081

director in consultation with the tax commissioner. The 2082

application shall include an estimate of the committee's, 2083

municipality's, or county's qualifying costs under the game 2084

S. B. No. 145 As Introduced

support contract. The local organizing committee, endorsing municipality, or endorsing county is eligible to receive a grant under this section only if the projected incremental increase in receipts from the tax imposed under section 5739.02 of the Revised Code, as determined by the director, exceeds two hundred fifty thousand dollars. The amount of the grant shall be not less than fifty per cent of the projected incremental increase in receipts, as determined by the director, but shall not exceed the lesser of two million dollars or the amount of the committee's, municipality's, or county's qualifying costs under the game support contract. The director shall disburse the grant to the local organizing committee, endorsing municipality, or endorsing county from the sports event grant fund.

2085
2086
2087
2088
2089
2090
2091
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2099
2100
2101
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2105
2106
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2108
2109
2110
2111
2112
2113
2114
2115

(B) If the director of housing and development services approves an application for a local organizing committee, endorsing municipality, or endorsing county and that local organizing committee, endorsing municipality, or endorsing county enters into a joinder agreement with a site selection organization, the local organizing committee, endorsing municipality, or endorsing county shall file a copy of the joinder agreement with the director. The grant shall be used exclusively by the local organizing committee, endorsing municipality, or endorsing county to pay its qualifying costs under the game support contract.

(C) For the purposes of division (A) of this section, the director of housing and development services, in consultation with the tax commissioner, shall designate the market area for a game. The market area shall consist of the combined statistical area, as defined by the United States office of management and budget, in which an endorsing municipality or endorsing county is located.

S. B. No. 145 As Introduced

(D) A local organizing committee, endorsing municipality, 2116
or endorsing county shall provide information required by the 2117
director of housing and development services and tax 2118
commissioner to enable the director and commissioner to fulfill 2119
their duties under this section, including annual audited 2120
statements of any financial records required by a site selection 2121
organization; data obtained by the local organizing committee, 2122
endorsing municipality, or endorsing county relating to 2123
attendance at a game and to the economic impact of the game; and 2124
financial records from the committee, municipality, or county 2125
verifying its qualifying costs under the game support contract. 2126
A local organizing committee, an endorsing municipality, or an 2127
endorsing county shall provide an annual audited financial 2128
statement if so required by the director and commissioner, not 2129
later than the end of the fourth month after the date the period 2130
covered by the financial statement ends. 2131

(E) Within thirty days after the game, the local organizing committee, endorsing municipality, or endorsing county shall certify to the director of housing and development services a statement of its qualifying costs under the game support contract and a report about the economic impact of the game. The certification shall be in the form and substance required by the director, including, but not limited to, a final income statement for the event showing total revenue and expenditures and revenue and expenditures in the market area for the game, and ticket sales for the game and any related activities for which admission was charged. The director shall determine, based on the reported information and the exercise of reasonable judgment, the incremental increase in receipts from the tax imposed under section 5739.02 of the Revised Code directly attributable to the game and the committee's,

S. B. No. 145 As Introduced

municipality's, or county's qualifying costs under the game	2147
support contract. If the actual incremental increase in sales	2148
	2149
such receipts， or if the actual qualifying costs are less than	2150
the estimated qualifying costs, the director may require the	2151
local organizing committee, endorsing municipality, or endorsing	2152
county to refund to the state all or a portion of the grant. Any	2153
refund remitted under this division shall be credited to the	2154
sports event grant fund.	2155
(F) No disbursement may be made under this section if the	2156
director of housing and development serviees-determines that it	2157
	2158
professional sports franchise located in this state.	2159
(G) This section may not be construed as creating or	2160
o	2161
ddns ue e tpun unoo butsiopua to attedtotuu bunsropua	2162
	2163
games in this state.	2164
Sec. 122.131. There is hereby created the employee	2165
ownership assistance program to be administered by the director	2166
of housing and development. The director may employ any	2167
professional and technical personnel and other employees that	2168
are necessary to comply with sections 122.13 to 122.136 of the	2169
Revised Code. The director shall assist an individual or group	2170
of individuals， who seek assistance in the establishment of an	2171
employee-owned corporation. The director shall inform local	2172
government, business organizations, labor organizations, and	2173
others in the state of the availability of the program and its	2174
services established pursuant to sections 122.13 to 122.136 of	2175
the Revised Code.	2176

S. B. No. 145 As Introduced

Sec. 122.132. The director of housing and development 2177
shall do all of the following: 2178
(A) Develop, collect, and disseminate information useful 2179
to individuals and organizations throughout the state in 2180
undertaking or promoting the establishment and successful 2181
operation of employee-owned corporations; 2182
(B) Assist in the evaluation of the feasibility and 2183
economic vitality of employee-owned corporation proposals 2184
received in the employee ownership assistance program; 2185
(C) Provide technical assistance and counseling services 2186
to individuals who seek to form an employee-owned corporation; 2187
(D) Provide assistance and counseling in the operation of 2188
an employee-owned corporation; 2189
(E) Assist individuals in obtaining financing for the 2190
purchase and operation of an employee-owned corporation; 2191
(F) Promote and coordinate the efforts of local, state, 2192
federal, or private organizations to assist in the formation or 2193
operation of employee-owned corporations; 2194
(G) Recommend appropriate legislative or executive actions 2195
to enhance opportunities for employee-owned corporations in this 2196
state; 2197
(H) Prescribe all forms for assistance requests and 2198
publish materials describing the employee ownership assistance 2199
program's services; 2200
(I) Adopt rules under Chapter 119. of the Revised Code for 2201
the conduct of the employee ownership assistance program. 2202
Sec. 122.133. The director of housing and development 2203

S. B. No. 145 As Introduced

shall publicize the availability of the employee ownership assistance program and its services to local governments and to business and labor organizations and shall coordinate with local governments, business and labor organizations, and other state agencies in obtaining information relating to the possible relocation of operations or closing of a business establishment.

Sec. 122.134. If the director of housing and development becomes aware that a business establishment is closing or relocating operations, the director, pursuant to a request received under section 122.135 of the Revised Code, may conduct an initial study of the feasibility of the employees of the business establishment establishing an employee-owned corporation to continue the operations of the business establishment, or to operate another business, and may hold an informational meeting of representatives of the local community, the business establishment, representatives of any employee organization, and affected employees to explain the services available from the department of housing and development relative to the formation of an employee-owned corporation.

Sec. 122.135. Any individual, group of individuals, employees, organization of employees, or local community affected by any closing or relocation of a business establishment's operations or the proposed closing or relocation of a business establishment's operations may request, in a manner prescribed by the director of housing and development, assistance in efforts to study the feasibility of the establishment of an employee-owned corporation and any other assistance the director may provide pursuant to sections 122.13 to 122.136 of the Revised Code.

Sec. 122.136. The director of housing and development

S. B. No. 145 As Introduced

services shall prepare and submit a report to the governor and the general assembly annually on or before the first day of August of the services and activities of the employee ownership assistance program for the preceding calendar year. The director shall include in the report information regarding the number, names, and locations of business establishments that have been be assisted as employee-owned corporations; recommendations on how to better operate the program; information regarding the effectiveness of the program in maintaining and improving employment in the state; and the number of individuals affected by the activities of the program.

2234
2235
2236
2237
2238
2239
2240
2241
2242
2243
2244
.14. (A) There is hereby created in the state 2245
treasury the roadwork development fund. The fund shall consist 2246
of the investment earnings of the security deposit fund created 2247
by section 4509.27 of the Revised Code and revenue transferred 2248
to it by the director of budget and management from the highway 2249
created in section 5735.051 of the Revised Code. 2250
The fund shall be used by the department of housing and 2251
development services agency in accordance with Section 5a of 2252
hio Constitution, to make road improvements 2253
associated with retaining or attracting business for this state, 2254
including both of the following: 2255
truction, reconstruction, maintenance, or repair 2256
of public roads that provide access to a public airport or are 2257
located within a public airport; 2258
truction, reconstruction, maintenance, or repair 2259
of public roads that provide or improve access to tourism 2260
2261
(B) All investment earnings of the fund shall be credited 2262
2263

attractions.

to the fund.

S. B. No. 145 As Introduced

Sec. 122.15. As used in this section and sections 122.151 2264
to 122.156 of the Revised Code: 2265
(A) "Affiliate" means a person that directly, or 2266
indirectly through one or more intermediaries, controls, is 2267
controlled by, or is under common control with another person. 2268
For the purposes of this division, a person is "controlled by" 2269
another person if the controlling person holds, directly or 2270
indirectly, the majority voting or ownership interest in the 2271
controlled person or has control over the day-to-day operations 2272
of the controlled person by contract or by law. 2273
(B) "Border county" means a county in this state that 2274
borders another state. 2275
(C) "Closing date" means the date on which a rural 2276
business growth fund has collected all of the amounts specified 2277
by divisions (G)(1) and (2) of section 122.151 of the Revised 2278
Code. 2279
(D) "Credit-eligible capital contribution" means an 2280
investment of cash by a person subject to the tax imposed by 2281
section 3901.86, 5725.18, 5729.03, or 5729.06 of the Revised 2282
Code in a rural business growth fund that equals the amount 2283
specified on a notice of tax credit allocation issued by the 2284
department of housing and development under division (I)(1) of 2285
section 122.151 of the Revised Code. The investment shall 2286
purchase an equity interest in the fund or purchase, at par 2287
value or premium, a debt instrument issued by the fund that 2288
meets all of the following criteria: 2289
(1) The debt instrument has an original maturity date of 2290
at least five years after the date of issuance. 2291
(2) The debt instrument has a repayment schedule that is 2292

S. B. No. 145 As Introduced

ter than a level principal amortization over five years. 2293
(3) The debt instrument has no interest, distribution, or 2294
payment features dependent on the fund's profitability or the 2295
of the fund's growth investments. 2296
(E) "Eligible investment authority" means the amount 2297
on the notice issued under division (F) of section 2298
122.151 of the Revised Code certifying the rural business growth 2299
fund. Sixty per cent of a fund's eligible investment authority 2300
shall be comprised of credit-eligible capital contributions. 2301
(F) "Full-time equivalent employee" means the quotient 2302
d by dividing the total number of hours for which 2303
es were compensated for employment over the preceding 2304
-month period by two thousand eighty. 2305
(G) "Growth investment" means any capital or equity 2306
investment in a rural business concern or any loan to a rural 2307
business concern with a stated maturity of at least one year. A 2308
secured loan or the provision of a revolving line of credit to a 2309
rural business concern is a growth investment only if the rural 2310
s growth fund obtains an affidavit from the president or 2311
xecutive officer of the rural business concern attesting 2312
e rural business concern sought and was denied similar 2313
ng from a commercial bank. 2314
(H) "Operating company" means any business that has its 2315
principal business operations in this state, has fewer than two 2316
hundred fifty employees and not more than fifteen million 2317
in net income for the preceding taxable year, and that 2318
is none of the following: 2319
(1) A country club; 2320
(2) A racetrack or other facility used for gambling; 2321

S.B. No. 145 AsIntroduced

(3） A store the principal purpose of which is the sale of

alcoholic beverages for consumption off premises; 2323

(4） A massage parlor; 2324

(5） A hot tub facility; 2325

(6) A suntan facility; 2326

(7） A business engaged in the development or holding of 2327

intangibles for sale; 2328

(8） A private or commercial golf course; 2329

(9） A business that derives or projects to derive fifteen 2330 per cent or more of its net income from the rental or sale of 2331

real property, except any business that is a special purpose 2332

entity principally owned by a principal user of that property 2333

formed solely for the purpose of renting, either directly or 2334

oa o a d us ao 'oa 2335

if such principal user does not derive fifteen per cent or more 2336

of its gross annual revenue from the rental or sale of real 2337

property; 2338

(l0) A publicly traded business. 2339

For the purposes of this division, "net income" means 2340

2341

2342

measured by income. 2343

(I） "Population" means that shown by the most recent 2344

decennial census or the most recent annual population estimate 2345

published or released by the United States census bureau, 2346

whichever is more recent. 2347

(J） A business's "principal business operations" are in 2348

S. B. No. 145 As Introduced

this state if at least eighty per cent of the business's employees reside in this state, the individuals who receive eighty per cent of the business's payroll reside in this state, or the business has agreed to use the proceeds of a growth investment to relocate at least eighty per cent of its employees to this state or pay at least eighty per cent of its payroll to individuals residing in this state. For the purpose of growth investments by a program two rural business growth fund, a business's "principal business operations" are also in this state if it is headquartered in a border county and at least sixty-five per cent of the business's employees reside in this state, the individuals who receive sixty-five per cent of the business's payroll reside in this state, or the business has agreed to use the proceeds of a growth investment to relocate at least sixty-five per cent of its employees to this state or pay at least sixty-five per cent of its payroll to individuals residing in this state.

2350
2351
2352
2353
2354
2355
2356
2357
2358
2359
2360
2361
2362
2363
2364
2365
2366
2367
2368
2369
2370
2371
2372
2373
2374
2375
2376
2377
2378

(K) "Program one" refers to rural business growth funds certified by the department of housing and development under section 122.151 of the Revised Code before the effective date of this amendment September 30, 2021.

(L) "Program two" refers to rural business growth funds certified by the department of housing and development under section 122.151 of the Revised Code on or after the effective date of this amendment September 30, 2021.

(M) "Rural area" means any county in this state having a population less than two hundred thousand.

(N) "Rural business concern" means an operating company that has its principal business operations located in a rural area.

S. B. No. 145 As Introduced

(O) "Rural business growth fund" and "fund" mean an entity 2379
certified by the department of housing and development under 2380
section 122.151 of the Revised Code. 2381

(P) "Taxable year" means the calendar year ending on the thirty-first day of December next preceding the day the annual statement is required to be returned under section 5725.18 or 5729.02 of the Revised Code.

(Q) "Tier one rural area" means any county in this state having a population less than two hundred thousand and more than one hundred fifty thousand.

(R) "Tier two rural area" means any county in this state having a population of more than seventy-five thousand but not more than one hundred fifty thousand.

(S) "Tier three rural area" means any county in this state having a population of not more than seventy-five thousand.

Sec. 122.151. (A) A person that has developed a business plan to invest in rural business concerns in this state and has successfully solicited private investors to make credit-eligible capital contributions in support of the plan may apply to the department of housing and development for certification as a rural business growth fund. The application shall include all of the following:

(1) The total eligible investment authority sought by the 2401
applicant under the business plan; 2402
(2) Documents and other evidence sufficient to prove, to 2403
the satisfaction of the agency, that the applicant meets all of 2404
the following criteria: 2405
(a) The applicant or an affiliate of the applicant is 2406

S. B. No. 145 As Introduced

	licensed as a rural business investment company under 7 U.S.C.	2407
	2009cc, or as a small business investment company under 15	2408
U.S.C. 681.		2409
	(b） As of the date the application is submitted, the	2410
	applicant has invested more than one hundred million dollars in	2411
	operating companies, including at least fifty million dollars in	2412
	operating companies located in rural areas. In computing	2413
	investments under this division, the applicant may include	2414
	investments made by affiliates of the applicant and investments	2415
	made in businesses that are not operating companies but would	2416
	qualify as operating companies if the principal business	2417
	operations were located in this state.	2418
		2419
		2420
	that will be made in each industry. The applicant shall identify	2421
	o ou a zan so busn a a a	2422
	industry classification system.	2423
	(4） An estimate of the number of new full-time equivalent	2424
	employees and retained full-time equivalent employees that will	2425
	result from the applicant's growth investments;	2426
	(5） A revenue impact assessment for the applicant's	2427
	proposed growth investments prepared by a nationally recognized	2428
	third-party independent economic forecasting firm using a	2429
	dynamic economic forecasting model. The revenue impact	2430
	assessment shall analyze the applicant's business plan over the	2431
	ten years following the date the application is submitted to the	2432
agency.		2433
	(6） A signed affidavit from each investor successfully	2434
	solicited by the applicant to make a credit eligible capital	2435

S. B. No. 145 As Introduced

contribution in support of the business plan. Each affidavit 2436
shall include information sufficient for the agency and the 2437
superintendent of insurance to identify the investor and shall 2438
state the amount of the investor's credit-eligible capital 2439
contribution. 2440
(7) A nonrefundable application fee of five thousand 2441
dollars. 2442

(B)(1) Except as provided in division (B)(2) of this section, the agency shall review and make a determination with respect to each application submitted under division (A) of this section within sixty days of receipt. The agency shall review and make determinations on the applications in the order in which the applications are received by the agency. Applications received by the agency on the same day shall be deemed to have been received simultaneously. The agency shall approve not more than seventy-five million dollars in eligible investment authority and not more than forty-five million dollars in credit-eligible capital contributions under this section for program one rural business growth funds. The agency shall approve not more than seventy-five million dollars in eligible investment authority and not more than forty-five million dollars in credit-eligible contributions under this section for program two rural business growth funds.

(2) If the agency denies an application for certification 2459
as a fund, and approving a subsequently submitted application 2460
would result in exceeding the dollar limitation on eligible 2461
investment authority or credit-eligible contributions prescribed 2462
by division (B)(1) of this section assuming the previously 2463
denied application were completed, clarified, or cured under 2464
division (D) of this section, the agency shall refrain from 2465

S. B. No. 145 As Introduced

making a determination on the subsequently submitted application 2466
until the previously denied application is reconsidered or the 2467
fifteen-day period for submitting additional information 2468
respecting that application has passed, whichever comes first. 2469
(C) The agency shall deny an application submitted under 2470
this section if any of the following are true: 2471
(1) The application is incomplete. 2472
(2) The application fee is not paid in full. 2473
(3) The applicant does not satisfy all the criteria 2474
described in division (A)(2) of this section. 2475
(4) The revenue impact assessment submitted under division 2476
(A)(5) of this section does not demonstrate that the applicant's 2477
business plan will result in a positive economic impact on this 2478
state over a ten-year period that exceeds the cumulative amount 2479
of tax credits that would be issued under section 122.152 of the 2480
Revised Code if the application were approved. 2481
(5) The credit-eligible capital contributions described in 2482
affidavits submitted under division (A)(6) of this section do 2483
not equal sixty per cent of the total amount of eligible 2484
investment authority sought under the applicant's business plan. 2485
(6) The agency has already approved the maximum total 2486
eligible investment authority and credit-eligible capital 2487
contributions allowed under division (B) of this section. 2488
(D) If the agency denies an application under division (C) 2489
of this section, the agency shall send notice of its 2490
determination to the applicant. The notice shall include the 2491
reason or reasons that the application was denied. If the 2492
application was denied for any reason other than the reason 2493

S. B. No. 145 As Introduced

specified in division (C)(6) of this section, the applicant may 2494

provide additional information to the agency to complete, 2495

clarify， or cure defects in the application. The additional 2496

information must be submitted within fifteen days after the date 2497

the notice of denial was dispatched by the agency. If the person 2498

submits additional information within fifteen days, the agency 2499

shall reconsider the application within thirty days after 2500

receiving the additional information. The application shall be 2501

reviewed and considered before any pending application submitted 2502

after the original submission date of the reconsidered 2503

application. If the person does not submit additional 2504

information within fifteen days after dispatch of the notice of 2505

denial, the person may submit a new application with a new 2506

submission date at any time. 2507

(E） If approving multiple simultaneously submitted 2508

applications would result in exceeding the overall eligible 2509

investment limit prescribed by division (B) of this section, the 2510

agency shall proportionally reduce the eligible investment 2511

authority and the credit-eligible capital contributions for each 2512

approved application as necessary to avoid exceeding the limit. 2513

(F） The agency shall not deny a rural business growth fund 2514

application or reduce the requested eligible investment 2515

2516

(C) and (E) of this section. If the agency approves such an 2517

application, the agency shall issue a written notice to the 2518

applicant certifying that the applicant qualifies as a rural 2519

business growth fund and specifying the amount of the 2520

applicant's eligible investment authority. 2521

(G) A fund shall do all of the following within sixty days 2522 after receiving the certification issued under division (F） of 2523

S. B. No. 145 As Introduced

this section: 2524

(1) Collect the credit-eligible capital contributions from 2525
each investor whose affidavit was included in the application. 2526
If the rural business growth fund's requested eligible 2527
investment authority is proportionally reduced under division 2528
(E) of this section, the investor's required credit-eligible 2529
capital contribution shall be reduced by the same proportion. 2530

(2) Collect one or more investments of cash that, when added to the contributions collected under division (G)(1) of this section, equal the fund's eligible investment authority. At least ten per cent of the fund's eligible investment authority shall be comprised of equity investments contributed directly or indirectly by affiliates of the fund, including employees, officers, and directors of such affiliates.

(H) Within sixty-five days after receiving the certification issued under division (F)(1) of this section, the fund shall send to the agency documentation sufficient to prove that the amounts described in divisions (G)(1) and (2) of this section have been collected. The fund shall identify any affiliate of an investor described in division (G)(1) of this section that will seek to claim the credit allowed by section 122.152 of the Revised Code. If the fund fails to fully comply with division (G) of this section, the fund's certification shall lapse.

Eligible investment authority and corresponding crediteligible capital contributions that lapse under this division do not count toward limits on total eligible investment authority and credit-eligible capital contributions prescribed by division (B) of this section. Once eligible investment authority has lapsed, the agency shall first award lapsed authority pro rata

S. B. No. 145 As Introduced

2554 investment authority because of the operation of division (E） of 2555

this section. Any remaining eligible investment authority may be 2556

awarded by the agency to new applicants. 2557

(I） After receiving documentation sufficient to prove that 2558

the amounts described in divisions (G)(l） and (2） of this 2559

section have been collected, the agency shall issue the 2560

following notices: 2561

2562

(H） of this section, a notice of the amount and utilization 2563

schedule of the tax credits allocated to that investor or 2564

affiliate as a result of its credit-eligible capital 2565

contribution; 2566

(2） To the superintendent of insurance, a notice of the 2567

amount and utilization schedule of the tax credits allocated to 2568

each investor described in division (G)(l） of this section and 2569

any affiliate of such investor who will seek to claim the credit 2570

allowed by section 122.152 of the Revised Code. 2571

2572

division (A)(7） of this section shall be credited to the tax 2573

incentives operating fund created under section 122.174 of the 2574

2575

sections 122.15 to 122.156 of the Revised Code. 2576

Sec. 122.152. (A) There is hereby allowed a nonrefundable 2577

tax credit for owners of tax credit certificates issued by the 2578

department of housing and development serviees ageney under 2579

division (B) of this section. The credit may be claimed against 2580

the tax imposed by section 3901.86, 5725.18, 5729.03, 0r 5729.06 2581

of the Revised Code. 2582

S. B. No. 145 As Introduced

(B) On the closing date, a taxpayer that made a crediteligible capital contribution to a rural business growth fund shall be eligible for a credit equal to the amount specified in the notice issued under division (I)(1) of section 122.151 of the Revised Code. On or before the third, fourth, fifth, and sixth anniversary dates of the closing date, the agency department shall issue a tax credit certificate to the taxpayer specifying the corresponding anniversary date and a credit amount equal to one-fourth of the total credit authorized under this section. The taxpayer or its identified affiliate may claim the credit amount for the taxable year that includes the date specified on the certificate. The taxpayer making a crediteligible capital contribution and the issuance of a tax credit certificate by the agency department does not represent a verification or certification by the agency department of compliance with the recapture provisions of section 122.153 of the Revised Code. The tax credit issued under this division is subject to recapture under section 122.153 of the Revised Code.

2583
2584
2585
2586
2587
2588
2589
2590
2591
2592
2593
2594
2595
2596
2597
2598
2599
2600
2601
2602
2603
2604
2605
2606
2607
2608
2609
2610
2611
2612

(C) The credit shall be claimed in the order required under section 5725.98 or 5729.98 of the Revised Code as applicable. If the amount of the credit for a taxable year exceeds the tax otherwise due for that year, the excess may be carried forward for not more than four ensuing taxable years. A taxpayer claiming a credit under this section shall submit a copy of the tax credit certificate with the taxpayer's annual statement for each taxable year in which the credit is claimed.

Sec. 122.153. (A) The department of housing and development shall not be required to issue a tax credit certificate under section 122.152 of the Revised Code if either of the following applies:

S. B. No. 145 As Introduced

Page 91
(1) The credit-eligible capital contribution was made in a 2613
program one rural business growth fund that fails to: 2614
(a) Invest fifty per cent of its eligible investment 2615
authority in growth investments within one year of the closing 2616
date; and 2617
(b) Invest one hundred per cent of its eligible investment 2618
authority in growth investments in this state within two years 2619
of the closing date. 2620
(2) The credit eligible contribution was made in a program 2621
two rural business growth fund that fails to: 2622
(a) Invest twenty-five per cent of its eligible investment 2623
authority in growth investments within one year of the closing 2624
date; 2625
(b) Invest fifty per cent of its eligible investment 2626
authority in growth investments within two years of the closing 2627
date; and 2628
(c) Invest one hundred per cent of its eligible investment 2629
authority in growth investments within three years of the 2630
closing date, including seventy-five per cent of its eligible 2631
investment authority in rural business concerns that have their 2632
principal business operations in tier two or tier three rural 2633
areas, and twenty-five per cent of its eligible investment 2634
authority in rural business concerns that have their principal 2635
business operations in tier three rural areas. The amount by 2636
which a rural business growth fund's growth investments in rural 2637
business concerns that have their principal business operations 2638
in tier one rural areas exceeds twenty-five per cent of the 2639
fund's eligible investment authority shall not count towards the 2640
satisfaction of the requirements prescribed by division (A)(2) 2641

S. B. No. 145 As Introduced

(c) of this section. 2642

(B) The agency shall recapture tax credits claimed under 2643
section 122.152 of the Revised Code if any of the following 2644
occur with respect to the rural business growth fund: 2645

(1) The fund, after investing one hundred per cent of its eligible investment authority in growth investments in this state, fails to maintain that investment until the sixth anniversary of the closing date. For the purposes of this division, an investment is maintained even if the investment is sold or repaid so long as the fund reinvests an amount equal to the capital returned or recovered by the fund from the original investment, exclusive of any profits realized, in other growth investments in this state within one year of the receipt of such capital.

(2) The fund makes a distribution or payment after the fund complies with division (G) of section 122.151 of the Revised Code and before the fund decertifies under division (D) of this section that results in the fund having less than one hundred per cent of its eligible investment authority invested in growth investments in this state.

(3) The fund makes a growth investment in a rural business concern that directly or indirectly through an affiliate owns, has the right to acquire an ownership interest, makes a loan to, or makes an investment in the fund, an affiliate of the fund, or an investor in the fund. Division (A)(3)(B)(3) of this section does not apply to investments in publicly traded securities by a rural business concern or an owner or affiliate of a rural business concern.

Before recapturing one or more tax credits under this

S. B. No. 145 As Introduced

division, the agency shall notify the fund of the reasons for 2671
the pending recapture. If the fund corrects the violations 2672
outlined in the notice to the satisfaction of the agency within 2673
thirty days of the date the notice was dispatched, the agency 2674
shall not recapture the tax credits. 2675

(C)(1) The amount by which one or more growth investments by a program one rural business growth fund in the same rural business concern exceeds twenty per cent of the fund's eligible investment authority shall not be counted as a growth investment for the purposes of this section. The amount by which one or more growth investments by a program two rural business growth fund in the same business concern exceeds five million dollars shall not be counted as a growth investment for the purposes of this section. A growth investment returned or repaid by a rural business concern to a program one or program two rural business growth fund and then reinvested by the fund in the same rural business concern does not count as an investment in the same rural business concern for the purposes of the limitations prescribed by division (C)(1) of this section.

(2) The aggregate amount of growth investments by all 2690
rural business growth funds in the same rural business concern, 2691
including amounts reinvested in a rural business concern 2692
following a returned or repayment of a growth investment, shall 2693
not exceed fifteen million dollars. 2694
(3) A growth investment in an affiliate of a rural 2695
business concern shall be treated as a growth investment in that 2696
rural business concern for the purposes of division (C) of this 2697
section. 2698
(D) If the agency recaptures a tax credit under this 2699
section, the agency shall notify the superintendent of insurance 2700

S. B. No. 145 As Introduced

of the recapture. The superintendent shall make an assessment under Chapter 5725. or 5729. of the Revised Code for the amount of the credit claimed by each certificate owner associated with the fund before the recapture was finalized. The time limitations on assessments under those chapters do not apply to an assessment under this division, but the superintendent shall make the assessment within one year after the date the agency notifies the superintendent of the recapture. Following the recapture of a tax credit under this section, no tax credit certificate associated with the fund may be utilized. Notwithstanding division (B) of section 122.152 of the Revised Code, if a tax credit is recaptured under this section the agency shall not issue future tax credit certificates to taxpayers that made credit-eligible capital contributions to the fund.

(E)(1) On or after the sixth anniversary of the closing date, a fund that has not committed any of the acts described in division (B) of this section may apply to the agency to decertify as a rural business growth fund. The agency shall respond to the application within sixty days after receiving the application. In evaluating the application, the fact that no tax credit has been recaptured with respect to the fund shall be sufficient evidence to prove that the fund is eligible for decertification. The agency shall not unreasonably deny an application submitted under this division.

(2) The agency shall send notice of its determination with 2726
respect to an application submitted under division (E)(1) of 2727
this section to the fund. If the application is denied, the 2728
notice shall include the reason or reasons for the 2729
determination. 2730

S. B. No. 145 As Introduced

(3) The agency shall not recapture a tax credit due to any 2731
actions of a fund that occur after the date the fund's 2732
application for decertification is approved. Division (E)(3) of 2733
this section does not prohibit the agency from recapturing a tax 2734
credit due to the actions of a fund that occur before the date 2735
the fund's application for decertification is approved, even if 2736
those actions are discovered after that date. 2737

Sec. 122.154. (A) Each rural business growth fund shall submit a report to the department of housing and development on or before the first day of each March following the end of the calendar year that includes the closing date until the calendar year after the fund has decertified. The report shall provide an itemization of the fund's growth investments and shall include the following documents and information:

2738
2739
2740
2741
2742
2743
2744
(1) A bank statement evidencing each growth investment; 2745
(2) The name, location, and industry class of each 2746
business that received a growth investment from the fund and 2747
evidence that the business qualified as a rural business concern 2748
at the time the investment was made. If the fund obtained a 2749
written opinion from the agency on the business's status as a 2750
rural business concern under section 122.156 of the Revised 2751
Code, or if the fund makes a written request for such an opinion 2752
and the agency failed to respond within thirty days as required 2753
by that section, a copy of the agency's favorable opinion or a 2754
dated copy of the fund's unanswered request, as applicable, 2755
shall be sufficient evidence that the business qualified as a 2756
rural business concern at the time the investment was made. 2757
(3) The number of employment positions that existed at 2758
each business described in division (A)(2) of this section on 2759
the date the business received the growth investment; 2760

S. B. No. 145 As Introduced

(4) The number of new full-time equivalent employees 2761
resulting from each of the fund's growth investments made or 2762
maintained in the preceding calendar year; 2763

(5) Any other information required by the agency.

(B) Each fund shall submit a report to the agency on or before the fifth business day after the first, second, and for program two funds, third anniversaries of the closing date that provides documentation sufficient to prove that the fund has met the investment thresholds described in division (A) of section 122.153 of the Revised Code and has not implicated any of the other recapture provisions described in division (B) of that section.

2764
2765
2766
2767
2768
2769
2770
2771
2772
2773
2774
2775
2776
2777
2778
2779
2780
2781
2782
2783
2784
2785
2786
2787
2788
2789
2790

(C) Each certified rural business growth fund shall pay the agency an annual fee of twenty thousand dollars. The initial annual fee required of a fund shall be due and payable to the agency along with the submission of documentation required under division (H) of section 122.151 of the Revised Code. Each subsequent annual fee is due and payable on the last day of February following the first and each ensuing anniversary of the closing date. If the fund is required to submit an annual report under division (A) of this section, the annual fee shall be submitted along with the report. No fund shall be required to pay an annual fee after the fund has decertified under section 122.153 of the Revised Code. Annual fees paid to the agency under this section shall be credited to the tax incentives operating fund created under section 122.174 of the Revised Code.

(D) The director of housing and development, after consultation with the superintendent of insurance and in accordance with Chapter 119. of the Revised Code, may adopt

S. B. No. 145 As Introduced

rules necessary to implement sections 122.15 to 122.156 of the 2791
Revised Code. 2792

Sec. 122.155. (A)(1) For each calendar year in which a rural business growth fund makes or maintains a growth investment in a rural business concern in this state, the fund shall determine the number of new full-time equivalent employees produced at the business concern as a result of the investment. New full-time equivalent employees shall be computed by subtracting the number of full-time equivalent employees at the rural business concern on the date of the fund's initial growth investment in the rural business concern from the number of full-time equivalent employees at the rural business concern on the last day of the calendar year. If the computation results in a number less than zero, the number of new full-time equivalent employees, produced by the fund's growth investment for that calendar year period shall be zero. Only employees with an hourly wage rate of at least one hundred fifty per cent of the federal minimum wage may be considered in computing the number of new full-time equivalent employees for the purposes of this section.

(2) A fund may determine and include, for the purposes of this section and section 122.154 of the Revised Code, the number of new full-time equivalent employees produced at a rural business concern after the year in which the fund's growth investment is repaid or redeemed. The new full-time equivalent employees shall be computed in the same manner as in division (A)(1) of this section based on reporting information provided by the rural business concern to the fund.

(B) After a fund's application for decertification is approved under section 122.153 of the Revised Code, the fund

S. B. No. 145 As Introduced

		all determine the state reimbursement amount. The state	2821
mbursement amount shall equal the amount by which the fund's			2822
edit-eligible capital contributions exceed the product			2823
		ained by multiplying thirty thousand dollars by the aggregate	2824
	nber of new full-time equivalent employees for the fund. If		2825
		at product is greater than the fund's credit-eligible capital	2826
	ntributions, the state reimbursement amount shall equal zero.		2827
	the absence of additional information provided by the fund or		2828
	scovered by the agency, the number of new full-time equivalent		2829
	oloyees for the purposes of this division equals the sum of		2830
	new full-time equivalent employees reported by the fund on		2831
	o oo a		2832
			2833
(C） After the state reimbursement amount is computed under			2834
ision (B) of this section, the fund shall not be permitted to			2835
			2836
	cluding investors that are equity holders of the funds without		2837
	cst remitting the state reimbursement amount to the agency.		2838
	amounts received by the agency under this division shall be		2839
edited to the general revenue fund.			2840
			2841
	(D) The director of housing and development-services, upon		2842
	request of a fund, may waive all or a portion of the hission required under division (C） of this section if the		2843
	cector determines, based on an affidavit of the chief		2844
	ecutive officer or president of a rural business concern, that		2845
			2846
	oloyment positions that would have otherwise been eliminated		2847
	rural business concerns in this state. The amount waived
			2848
	all not exceed the product of thirty thousand dollars		2849
	tiplied by the number of retained employment positions		2850
	g a m a o a		2851

S. B. No. 145 As Introduced

maintained a growth investment in the rural business concern

2852 that retained the employment positions. 2853

Sec. 122.156. A rural business growth fund, before 2854

investing in a business, may request a written opinion from the 2855

2856

qualifies as a rural business concern based on the criteria 2857

2858

shall be submitted in a form prescribed by rule of the agency. 2859

The agency shall issue a written opinion to the fund within 2860

thirty business days of receiving such a request. 2861

2862

Code, if the agency determines that the business qualifies as a 2863

o 2864

the written opinion as required under this section, the business 2865

shall be considered a rural business concern for the purposes of 2866

sections 122.15 to 122.156 of the Revised Code. 2867

Sec. 122.16. (A) As used in this section: 2868

2869

that has a population of at least fifty thousand according to 2870

the most recent federal decennial census published by the United 2871

States census bureau, or a county, that meets at least two of 2872

the following criteria: 2873

(a） Its average rate of unemployment, during the most 2874

recent five-year period for which local area unemployment 2875

statistics published by the United States bureau of labor 2876

statistics are available, as of the date the most recent federal 2877

decennial census was published, is equal to or greater than one 2878

2879

for the United States for the same period. 2880

S. B. No. 145 As Introduced

	(b)(i) In the case of a county, its per capita personal	2881
	income is equal to or less than eighty per cent of the per	2882
	capita personal income of the United States as determined by the	2883
	most recently available data from the United States department	2884
	of commerce, bureau of economic analysis as of the date the most	2885
	recent federal decennial census was published.	2886
	(ii） In the case of a municipal corporation, its per	2887
		2888
		2889
	recently available five-year estimates published in the American	2890
	community survey as of the date the most recent federal	2891
decennial census was published.		2892
(c)(i） In the case of a county， its ratio of personal		2893
	current transfer receipts to total personal income is equal to	2894
	or greater than twenty-five per cent, as determined by the most	2895
	recently available data from the United States department of	2896
	commerce, bureau of economic analysis as of the date the most	2897
recent federal decennial census was published.		2898
(ii） In the case of a municipal corporation, the		2899
percentage of its residents with incomes below the official		2900
		2901
determined by the most recently available five-year estimates		2902
published in the American community survey as of the date the		2903
most recent federal decennial census was published.		2904
		2905
	described in division (A)(l） of this section, the director of	2906
	housing and_development shall designate, on the department of	2907
	housing and development's web site, an alternative source of the	2908
	applicable data published by a federal agency or, if no such	2909
source is available, another reliable source.		2910

S. B. No. 145 As Introduced

(2) "Eligible area" means a distressed area, a labor 2911
surplus area, an inner city area, or a situational distress 2912
area. 2913
(3) "Eligible costs associated with a voluntary action" 2914
means costs incurred during the qualifying period in performing 2915
a remedy or remedial activities, as defined in section 3746.01 2916
of the Revised Code, and any costs incurred during the 2917
qualifying period in performing both a phase I and phase II 2918
property assessment, as defined in the rules adopted under 2919
section 3746.04 of the Revised Code, provided that the 2920
performance of the phase I and phase II property assessment 2921
resulted in the implementation of the remedy or remedial 2922
activities. 2923
(4) "Inner city area" means, in a municipal corporation 2924
that has a population of at least one hundred thousand and does 2925
not meet the criteria of a labor surplus area or a distressed 2926
area, targeted investment areas established by the municipal 2927
corporation within its boundaries that are comprised of the most 2928
recent census block tracts that individually have at least 2929
twenty per cent of their population at or below the state 2930
poverty level or other census block tracts contiguous to such 2931
census block tracts. 2932
(5) "Labor surplus area" means an area designated as a 2933
labor surplus area by the United States department of labor. 2934
(6) "Official poverty line" has the same meaning as in 2935
division (A) of section 3923.51 of the Revised Code. 2936
(7) "Partner" includes a member of a limited liability 2937
company formed under Chapter 1705. or 1706. of the Revised Code 2938
or under the laws of any other state if the limited liability 2939

S. B. No. 145 As Introduced

company is not treated as a corporation for purposes of Chapter 2940
5733. of the Revised Code and is not classified as an 2941
association taxable as a corporation for federal income tax 2942
purposes. 2943
(8) "Partnership" includes a limited liability company 2944
formed under Chapter 1705. or 1706. of the Revised Code or under 2945
the laws of any other state if the limited liability company is 2946
not treated as a corporation for purposes of Chapter 5733. of 2947
the Revised Code and is not classified as an association taxable 2948
as a corporation for federal income tax purposes. 2949
(9) "Qualifying period" means the period that begins July 2950
1, 1996, and ends June 30, 1999. 2951
(10) "S corporation" means a corporation that has made an 2952
election under subchapter S of chapter one of subtitle A of the 2953
Internal Revenue Code for its taxable year under the Internal 2954
Revenue Code; 2955
(11) "Situational distress area" means a county or a 2956
municipal corporation that has experienced or is experiencing a 2957
closing or downsizing of a major employer that will adversely 2958
affect the economy of the county or municipal corporation. In 2959
order for a county or municipal corporation to be designated as 2960
a situational distress area, the governing body of the county or 2961
municipal corporation shall submit a petition to the director of 2962
housing and development in the form prescribed by the director. 2963
A county or municipal corporation may be designated as a 2964
situational distress area for a period not exceeding thirty-six 2965
months. 2966
The petition shall include written documentation that 2967
demonstrates all of the following: 2968

S. B. No. 145 As Introduced

(a) The number of jobs lost by the closing or downsizing; 2969
(b) The impact that the job loss has on the unemployment 2970
rate of the county or municipal corporation as measured by the 2971
director of job and family services; 2972
(c) The annual payroll associated with the job loss; 2973
(d) The amount of state and local taxes associated with 2974
the job loss; 2975
(e) The impact that the closing or downsizing has on the 2976
suppliers located in the county or municipal corporation. 2977
(12) "Voluntary action" has the same meaning as in section 2978
3746.01 of the Revised Code. 2979
(13) "Taxpayer" means a corporation subject to the tax 2980
imposed by section 5733.06 of the Revised Code or any person 2981
subject to the tax imposed by section 5747.02 of the Revised 2982
Code. 2983
(14) "Governing body" means the board of county 2984
commissioners of a county, the board of township trustees of a 2985
township, or the legislative authority of a municipal 2986
corporation. 2987
(15) "Eligible site" means property for which a covenant 2988
not to sue has been issued under section 3746.12 of the Revised 2989
Code. 2990
(16) "American community survey" means the supplementary 2991
statistics collected and published annually by the United States 2992
census bureau in accordance with 13 U.S.C. 141 and 193. 2993
(B)(1) A taxpayer, partnership, or S corporation that has 2994
been issued, under section 3746.12 of the Revised Code, a 2995

S. B. No. 145

AsIntroduced
covenant not to sue for a site by the director of environmental	2996
protection during the qualifying period may apply to the	2997
director of housing and development, in the manner prescribed by	2998
the director, to enter into an agreement under which the	2999
applicant agrees to economically redevelop the site in a manner	3000
that will create employment opportunities and a credit will be	3001
granted to the applicant against the tax imposed by section	3002
5733.06 or 5747.02 of the Revised Code. The application shall	3003
state the eligible costs associated with a voluntary action	3004
incurred by the applicant. The application shall be accompanied	3005
oa n o g oo	9008
development, that the covenant not to sue has been issued.	3007
The applicant shall request the certified professional	3008
	3009
site under section 3746.11 of the Revised Code to submit an	3010
	3011
the eligible costs associated with the voluntary action at that	3012
site.	3013
The director shall review the applications in the order	3014
they are received. If the director determines that the applicant	3015
meets the requirements of this section, the director may enter	3016
into an agreement granting a credit against the tax imposed by	3017
section 5733.06 or 5747.02 of the Revised Code. In making the	3018
determination, the director may consider the extent to which	3019
political subdivisions and other units of government will	3020
cooperate with the applicant to redevelop the eligible site. The	3021
agreement shall state the amount of the tax credit and the	3022
reporting requirements described in division (F) of this	3023
section.	3024
(2） The maximum annual amount of credits the director of	3025

S. B. No. 145 As Introduced

housing and_development may grant under such agreements shall be as follows:

3027

1996$5,000,000 3028

1997 $10,000,000 3029

1998 $10,000,000 3030

1999$5,000,000 3031

For any year in which the director of housing and 3032

3033

to the maximum annual amount, the amount not granted for that 3034

a eu aua aunoue tenuue unuxu aua oa pappe aa ieus 1a 3035

granted for the following year. However, the director shall not 3036

grant any tax credits under this section after June 30, 1999. 3037

(C)(l） If the covenant not to sue was issued in connection 3038

with a site that is not located in an eligible area, the credit 3039

amount is equal to the lesser of five hundred thousand dollars 3040

or ten per cent of the eligible costs associated with a 3041

voluntary action incurred by the taxpayer, partnership, or S 3042

corporation. 3043

o o ( 3044

a site that is located in an eligible area, the credit amount is 3045

equal to the lesser of seven hundred fifty thousand dollars or 3046

fifteen per cent of the eligible costs associated with a 3047

voluntary action incurred by the taxpayer, partnership, or S 3048

corporation. 3049

(3） A taxpayer, partnership, or S corporation that has 3050

been issued covenants not to sue under section 3746.12 of the 3051

3052

housing and_development to enter into more than one agreement 3053

S. B. No. 145 As Introduced

granting a credit against the tax imposed by section 5733.06 or 5747.02 of the Revised Code.

(4) For each year for which a taxpayer, partnership, or S corporation has been granted a credit under an agreement entered into under this section, the director of housing and development shall issue a certificate to the taxpayer, partnership, or S corporation indicating the amount of the credit the taxpayer, the partners of the partnership, or the shareholders of the S corporation may claim for that year, not including any amount that may be carried forward from previous years under section 5733.34 of the Revised Code.

(D)(1) Each agreement entered into under this section shall incorporate a commitment by the taxpayer, partnership, or S corporation not to permit the use of an eligible site to cause the relocation of employment positions to that site from elsewhere in this state, except as otherwise provided in division (D)(2) of this section. The commitment shall be binding on the taxpayer, partnership, or S corporation for the lesser of five years from the date the agreement is entered into or the number of years the taxpayer, partnership, or S corporation is entitled to claim the tax credit under the agreement.

(2) An eligible site may be the site of employment 3075
positions relocated from elsewhere in this state if the director 3076
of housing and development determines both of the following: 3077
(a) That the site from which the employment positions 3078
would be relocated is inadequate to meet market and industry 3079
conditions, expansion plans, consolidation plans, or other 3080
business considerations affecting the relocating employer; 3081
(b) That the governing body of the county, township, or 3082

S. B. No. 145 As Introduced

municipal corporation from which the employment positions would 3083
be relocated has been notified of the possible relocation. 3084

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, but the transfer of an individual employee from one political subdivision to another political subdivision shall not be considered a relocation of an employment position as long as the individual's employment position in the first political subdivision is refilled.

(E) A taxpayer, partnership, or S corporation that has entered into an agreement granting a credit against the tax imposed by section 5733.06 or 5747.02 of the Revised Code that subsequently recovers in a lawsuit or settlement of a lawsuit at least seventy-five per cent of the eligible costs associated with a voluntary action shall not claim any credit amount remaining, including any amounts carried forward from prior years, beginning with the taxable year in which the judgment in the lawsuit is entered or the settlement is finally agreed to.

Any amount of credit that a taxpayer, partnership, or S 3102
corporation may not claim by reason of this division shall not 3103
be considered to have been granted for the purpose of 3104
determining the total amount of credits that may be issued under 3105
division (B)(2) of this section. 3106
(F) Each year for which a taxpayer, partnership, or S 3107
corporation claims a credit under section 5733.34 of the Revised 3108
Code, the taxpayer, partnership, or S corporation shall report 3109
the following to the director of housing and development: 3110

(1) The status of all cost recovery litigation described

S. B. No. 145 As Introduced

in division (E） of this section to which it was a party during
the previous year;	3112 3113
(2） Confirmation that the covenant not to sue has not been	3114
revoked or has not been voided;	3115
(3） Confirmation that the taxpayer, partnership, or S	3116
corporation has not permitted the eligible site to be used in	3117
	3118
from elsewhere in this state in violation of the commitment	3119
required under division (D) of this section;	3120
(4） Any other information the director of housing and
	3121 3122
section.	3123
(G) The director of housing and development shall annually
certify, by the first day of January of each year during the	3124
qualifying period, the eligible areas for the calendar year that	3125
includes that first day of January.	3126 3127
(H) The director of housing and_development, in accordance
with Chapter 1l9. of the Revised Code， shall adopt rules	3128 3129
	3130
forms required for administering this section.	3131
Sec. 122.17. (A) As used in this section:
(l） "Payroll" means the total taxable income paid by the	3132
employer during the employer's taxable year, or during the	3133 3134
calendar year that includes the employer's tax period, to each	3135
	3136
the extent such payroll is not used to determine the credit	3137
under section 122.171 of the Revised Code. "Payroll" excludes	3138
	3139 3140

S. B. No. 145 As Introduced

by the employer to or on behalf of employees. 3141
(2) "Baseline payroll" means Ohio employee payroll, except 3142
that the applicable measurement period is the twelve months 3143
immediately preceding the date the tax credit authority approves 3144
the taxpayer's application or the date the tax credit authority 3145
receives the recommendation described in division (C)(2)(a) of 3146
this section, whichever occurs first, multiplied by the sum of 3147
one plus an annual pay increase factor to be determined by the 3148
tax credit authority. 3149
(3) "Ohio employee payroll" means the amount of 3150
compensation used to determine the withholding obligations in 3151
division (A) of section 5747.06 of the Revised Code and paid by 3152
the employer during the employer's taxable year, or during the 3153
calendar year that includes the employer's tax period, to the 3154
following: 3155
(a) An employee employed in the project who is a resident 3156
of this state including a qualifying work-from-home employee not 3157
designated as a home-based employee by an applicant under 3158
division (C)(1) of this section; 3159
(b) An employee employed at the project location who is 3160
not a resident and whose compensation is not exempt from the tax 3161
imposed under section 5747.02 of the Revised Code pursuant to a 3162
reciprocity agreement with another state under division (A)(3) 3163
of section 5747.05 of the Revised Code; 3164
(c) A home-based employee employed in the project. 3165
"Ohio employee payroll" excludes any such compensation to 3166
the extent it is used to determine the credit under section 3167
122.171 of the Revised Code, and excludes amounts paid before 3168
the day the taxpayer becomes eligible for the credit under this 3169

S. B. No. 145 As Introduced

section. 3170
(4) "Excess payroll" means Ohio employee payroll minus 3171
baseline payroll. 3172
(5) "Home-based employee" means an employee whose services 3173
are performed primarily from the employee's residence in this 3174
state exclusively for the benefit of the project and whose rate 3175
of pay is at least one hundred thirty-one per cent of the 3176
federal minimum wage under 29 U.S.C. 206. 3177
(6) "Full-time equivalent employees" means the quotient 3178
obtained by dividing the total number of hours for which 3179
employees were compensated for employment in the project by two 3180
thousand eighty. "Full-time equivalent employees" excludes hours 3181
that are counted for a credit under section 122.171 of the 3182
Revised Code. 3183
(7) "Metric evaluation date" means the date by which the 3184
taxpayer must meet all of the commitments included in the 3185
agreement. 3186
(8) "Qualifying work-from-home employee" means an employee 3187
who is a resident of this state and whose services are 3188
supervised from the employer's project location and performed 3189
primarily from a residence of the employee located in this 3190
state. 3191
(9) "Resident" or "resident of this state" means an 3192
individual who is a resident as defined in section 5747.01 of 3193
the Revised Code. 3194
(10) "Reporting period" means a period corresponding to 3195
the annual report required under division (D)(6) of this 3196
section. 3197

S. B. No. 145 As Introduced

(11) "Megaproject" means a project in this state that 3198
meets all of the following requirements: 3199
(a) At least one of the following applies: 3200
(i) The project requires unique sites, extremely robust 3201
utility service, and a technically skilled workforce. 3202
(ii) The megaproject operator of the project has its 3203
corporate headquarters in the United States, incurs more than 3204
fifty per cent of its research and development expenses in the 3205
United States in the year preceding the date the tax credit 3206
authority approves the project for a credit under this section, 3207
and builds and operates semiconductor wafer manufacturing 3208
factories in this state or intends to do so by the metric 3209
evaluation date applicable to the megaproject operator. 3210

(b) The megaproject operator of the project agrees, in an agreement with the tax credit authority under division (D) of this section, that, on and after the metric evaluation date applicable to the megaproject operator and until the end of the last year for which the megaproject qualifies for the credit authorized under this section, the megaproject operator will compensate the project's employees at an average hourly wage of at least three hundred per cent of the federal minimum wage under 29 U.S.C. 206, exclusive of employee benefits, as determined at the time the tax credit authority approves the project for a credit under this section.

3211
3212
3213
3214
3215
3216
3217
3218
3219
3220
3221
3222
3223
3224
3225
3226

(c) The megaproject operator agrees, in an agreement with the tax credit authority under division (D) of this section, to satisfy either of the following by the metric evaluation date applicable to the project:

(i) The megaproject operator makes at least one billion

S. B. No. 145 As Introduced

	S adjusted under division (V)(l） of this section， in	3227
t investments in the project.		3228
The megaproject operator creates at least seventy-		3229
	on dollars, as adjusted under division (V)(l） of this	3230
1 Ohio employee payroll at the project.		3231
	rhe megaproject operator agrees, in an agreement with	3232
	edit authority under division (D） of this section,	3233
	eproject satisfies division (A)(ll）(c)(ii）of this	3234
	nen, on and after the metric evaluation date and until	3235
		3236
	authorized under this section, the megaproject	3237
	ill maintain at least the amount in Ohio employee	3238
	the project required under that division for each	3239
at period.		3240
	"Megaproject operator" means a taxpayer that,	3241
	or collectively with other taxpayers, undertakes and	3242
	megaproject. Such a taxpayer becomes a megaproject	3243
	ffective the first day of the calendar year in which	3244
	er and the tax credit authority enter into an	3245
	ander division (D) of this section with respect to the	3246
	a aua a pautsap aa eu taedx auo uua to 'a	3247
nority as a megaproject operator for the same		3248
.		3249
	"Megaproject supplier" means a supplier in this state	3250
either or both of the following requirements:		3251
	rhe supplier sells tangible personal property directly	3252
escribed in division (A)(ll）(a)(ii）of this section	coject operator of a megaproject that satisfies the	3253 3254
	a megaproject site, provided that such property was
		3255

S. B. No. 145

AsIntroduced
subject to substantial manufacturing, assembly, or processing in	3256
this state at a facility owned or operated by the supplier;	3257
(b） The supplier sells tangible personal property directly	3258
to a megaproject operator for use at a megaproject site,	3259
provided that the supplier agrees， in an agreement with the tax	3260
Credit authority under division (D） of this section， to meet all	3261
of the following requirements:	3262
(i） By the metric evaluation date applicable to the	3263
supplier, makes at least one hundred million dollars, as	3264
adjusted under division (V)(2） of this section， in fixed-asset	3265
investments in this state;	3266
	3267
(ii) By the metric evaluation date applicable to the supplier, creates at least ten million dollars, as adjusted	3268
1d d otu u 'uoos a 1o ()() uot1 un	3269
(iii) On and after the metric evaluation date applicable to the supplier， until the end of the last year for which the	3270 3271
supplier qualifies for the credit authorized under this section,	3272
maintains at least the amount in Ohio employee payroll required	3273
under division (A)(l3)(b)(ii） of this section for each year in	3274
that period.	3275
o ()	3276
section to foster job creation in this state. Such a grant shall	3277
take the form of a refundable credit allowed against the tax	3278
imposed by section 5725.18, 5726.02, 5729.03, 5733.06, 5736.02,	3279
or 5747.02 or levied under Chapter 5751. of the Revised Code.	3280
s	3281
specified in the taxpayer's agreement with the tax credit
	3282
authority under division (D) of this section. With respect to	3283
taxes imposed under section 5726.02, 5733.06, or 5747.02 or	3284

S. B. No. 145 As Introduced

Chapter 5751. of the Revised Code, the credit shall be claimed 3285
in the order required under section 5726.98, 5733.98, 5747.98, 3286
or 5751.98 of the Revised Code. The amount of the credit 3287
available for a taxable year or for a calendar year that 3288
includes a tax period equals the excess payroll for that year 3289
multiplied by the percentage specified in the agreement with the 3290
tax credit authority. 3291

(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.

An application shall not propose to include both homebased employees and employees who are not home-based employees in the computation of Ohio employee payroll for the purposes of the same tax credit agreement, except that a qualifying workfrom-home employee shall not be considered to be a home-based employee unless so designated by the applicant. If a taxpayer or potential taxpayer employs both home-based employees and employees who are not home-based employees in a project, the taxpayer shall submit separate applications for separate tax credit agreements for the project, one of which shall include home-based employees in the computation of Ohio employee payroll and one of which shall include all other employees in the computation of Ohio employee payroll.

The director of housing and development shall prescribe 3309
the form of the application. After receipt of an application, 3310
the authority may enter into an agreement with the taxpayer for 3311
a credit under this section if it determines all of the 3312
following: 3313

(a) The taxpayer's project will increase payroll;

S. B. No. 145 As Introduced

(b) The taxpayer's project is economically sound and will 3315
benefit the people of this state by increasing opportunities for 3316
employment and strengthening the economy of this state; 3317
(c) Receiving the tax credit is a major factor in the 3318
taxpayer's decision to go forward with the project. 3319
(2)(a) A taxpayer that chooses to begin the project prior 3320
to receiving the determination of the authority may, upon 3321
submitting the taxpayer's application to the authority, request 3322
that the chief investment officer of the nonprofit corporation 3323
formed under section 187.01 of the Revised Code and the director 3324
review the taxpayer's application and recommend to the authority 3325
that the taxpayer's application be considered. As soon as 3326
possible after receiving such a request, the chief investment 3327
officer and the director shall review the taxpayer's application 3328
and, if they determine that the application warrants 3329
consideration by the authority, make that recommendation to the 3330
authority not later than six months after the application is 3331
received by the authority. 3332
(b) The authority shall consider any taxpayer's 3333
application for which it receives a recommendation under 3334
division (C)(2)(a) of this section. If the authority determines 3335
that the taxpayer does not meet all of the criteria set forth in 3336
division (C)(1) of this section, the authority and the 3337
department of housing and development shall proceed in 3338
accordance with rules adopted by the director pursuant to 3339
division (I) of this section. 3340
(D) An agreement under this section shall include all of 3341
the following: 3342
(1) A detailed description of the project that is the 3343

S. B. No. 145 As Introduced

subject of the agreement; 3344
(2)(a) The term of the tax credit, which, except as 3345
provided in division (D)(2)(b) or (C) of this section, shall not 3346
exceed fifteen years, and the first taxable year, or first 3347
calendar year that includes a tax period, for which the credit 3348
may be claimed; 3349
(b) If the tax credit is computed on the basis of home- 3350
based employees, the term of the credit shall expire on or 3351
before the last day of the taxable or calendar year ending 3352
before the beginning of the seventh year after September 6, 3353
2012, the effective date of H.B. 327 of the 129th general 3354
assembly. 3355
(c) If the taxpayer is a megaproject operator or a 3356
megaproject supplier that meets the requirements described in 3357
division (A)(13)(b) of this section, the term of the tax credit 3358
shall not exceed thirty years. 3359
(3) A requirement that the taxpayer shall maintain 3360
operations at the project location for at least the greater of 3361
seven years or the term of the credit plus three years; 3362
(4) The percentage, as determined by the tax credit 3363
authority, of excess payroll that will be allowed as the amount 3364
of the credit for each taxable year or for each calendar year 3365
that includes a tax period; 3366
(5) The pay increase factor to be applied to the 3367
taxpayer's baseline payroll; 3368
(6) A requirement that the taxpayer annually shall report 3369
to the director of housing and development full-time equivalent 3370
employees, payroll, Ohio employee payroll, investment, the 3371
provision of health care benefits and tuition reimbursement if 3372

S. B. No. 145 As Introduced

required in the agreement, and other information the director 3373
needs to perform the director's duties under this section; 3374
(7) A requirement that the director of housing and 3375
development annually review the information reported under 3376
division (D)(6) of this section and verify compliance with the 3377
agreement; if the taxpayer is in compliance, a requirement that 3378
the director issue a certificate to the taxpayer stating that 3379
the information has been verified and identifying the amount of 3380
the credit that may be claimed for the taxable or calendar year. 3381
If the taxpayer is a megaproject supplier, the director shall 3382
issue such a certificate to the megaproject supplier and to any 3383
megaproject operator (a) to which the megaproject supplier 3384
directly sells tangible personal property and (b) that is 3385
authorized to claim the credit pursuant to division (D)(10) of 3386
this section. 3387

(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 housing and development 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. The movement of a qualifying work-from-home employee to a different residence located in this state or to the project location shall not be considered a relocation of an employment position.

S. B. No. 145 As Introduced

(9) If the tax credit is computed on the basis of home- 3403
based employees, that the tax credit may not be claimed by the 3404
taxpayer until the taxable year or tax period in which the 3405
taxpayer employs at least two hundred employees more than the 3406
number of employees the taxpayer employed on June 30, 2011; 3407

(10) If the taxpayer is a megaproject supplier, the percentage of the annual tax credit certified under division (D) (7) of this section, up to one hundred per cent, that may be claimed by each megaproject operator to which the megaproject supplier directly sells tangible personal property, rather than by that megaproject supplier, on the condition that the megaproject operator continues to qualify as a megaproject operator;

(11) If the taxpayer is a megaproject operator or megaproject supplier, a requirement that the taxpayer meet and maintain compliance with all thresholds and requirements to which the taxpayer agreed, pursuant to division (A)(11) or (13) of this section, respectively, as a condition of the operator's project qualifying as a megaproject or the supplier qualifying as a megaproject supplier until the end of the last year for which the taxpayer qualifies for the credit authorized under this section. In each year that a megaproject operator or megaproject supplier is subject to an agreement with the tax credit authority under this section and meets the requirements of this division, the director of housing and development shall issue a certificate to the megaproject operator or megaproject supplier stating that the megaproject operator or megaproject supplier continues to meet those requirements.

(12) If the taxpayer is a megaproject operator, a 3431
requirement that the megaproject operator submit, in a form 3432

S. B. No. 145 As Introduced

acceptable to the director of housing and development, an 3433
economic impact report with respect to each megaproject for 3434
which the megaproject operator is designated, summarizing all of 3435
the following for the reporting year: 3436
(a) The aggregate amount of purchases made by the 3437
megaproject operator for such megaproject from megaproject 3438
suppliers; 3439
(b) The aggregate amount of purchases made by the 3440
megaproject operator for such megaproject from suppliers other 3441
than megaproject suppliers; 3442
(c) A summary of the construction activity for any 3443
facilities at the site of the megaproject in that year; 3444
(d) The aggregate amount expended by the megaproject 3445
operator on research and development at the site of the 3446
megaproject in that year; 3447
(e) The number of employees working at the site of the 3448
megaproject and the counties in which those employees reside; 3449
(f) A summary of the supply chain activity in support of 3450
the megaproject, including a list of the twenty-five suppliers 3451
with a physical presence in Ohio from which the megaproject 3452
operator made the most purchases in that year. 3453
The economic impact report shall be due on or before the 3454
first day of July of each year, beginning in the year specified 3455
in the agreement with the tax credit authority. The information 3456
required in the report shall be certified as true and correct by 3457
an officer of the megaproject operator. If there is more than 3458
one megaproject operator designated for a single megaproject, 3459
all of the megaproject operators designated for the megaproject 3460
may jointly submit a single report. Any information contained in 3461

S. B. No. 145 As Introduced

e report is a public record for purposes of section 149.43 of e Revised Code and shall be published on the department of

3462 3463

using and_development's web site. 3464

(E)(l） If a taxpayer fails to meet or comply with any 3465

ndition or requirement set forth in a tax credit agreement, 3466

3467

rcentage or term of the tax credit. The reduction of the 3468

3469

lendar year. 3470

3471

at is a megaproject operator of a megaproject described in 3472

11 0 ()()()() 1 3473

th the requirements of the agreement, the authority may impose 3474

recoupment payment on the taxpayer in accordance with the 3475

llowing: 3476

(a） If, on the metric evaluation date, the taxpayer fails 3477

substantially meet the capital investment, full-time 3478

uivalent employee, or payroll requirements included in the 3479

reement， an amount determined at the discretion of the 3480

thority， not to exceed the sum of the following for all years 3481

ior to the metric evaluation date:(i） the amount of taxes 3482

at would have been imposed under Chapters 5739. and 5741. of 3483

e Revised Code in the absence of the agreement， and (ii） the 3484

ount of taxes that would have been imposed under Chapter 5751. 3485

the Revised Code on receipts realized from sales to the 3486

xpayer in the absence of the agreement; 3487

(b) If the taxpayer fails to substantially maintain the 3488

pital investment, full-time equivalent employee, or payroll 3489

a g 3490 3491

S. B. No. 145 As Introduced

of the authority, not to exceed the sum of the following for the 3492
calendar year in which taxpayer failed to meet the requirements: 3493
(i) the amount of taxes that would have been imposed under 3494
Chapters 5739. and 5741. of the Revised Code in the absence of 3495
the agreement, and (ii) the amount of taxes that would have been 3496
imposed under Chapter 5751. of the Revised Code on receipts 3497
realized from sales to the taxpayer in the absence of the 3498
agreement. 3499
(3) The tax credit authority may, subject to any 350
requirements of the tax credit agreement, take into 350
consideration the taxpayer's prior performance and any market 350
conditions impacting the taxpayer when determining the amount of 350
the recoupment payment described in division (E)(2) of this 350
section. 350

(F) Projects that consist solely of point-of-finalpurchase retail facilities are not eligible for a tax credit under this section. If a project consists of both point-offinal-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 payroll 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 housing and development or the tax credit

S. B. No. 145 As Introduced

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 housing and development's 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 the time prescribed by section 5703.0510 of the Revised Code or within thirty days after the commissioner or superintendent requests it.

(I) The director of housing and development, after consultation with the tax commissioner and the superintendent of

S. B. No. 145 As Introduced

	nsurance and in accordance with Chapter 1l9. of the Revised	3553
ode, shall adopt rules necessary to implement this section,		3554
	ncluding rules that establish a procedure to be followed by the	3555
	ax credit authority and the department of housing and	3556
		3557
	pplication for which it receives a recommendation under	3558
	ivision (C)(2)(a） of this section but does not approve it.The	3559
		3560
	ection to be charged fees to cover administrative costs of the	3561
	ax credit program. For the purposes of these rules， a	3562
	ualifying work-from-home employee shall be considered to be an	3563
	mployee employed at the applicant's project location. The fees	3564
	ollected shall be credited to the tax incentives operating fund	3565
	reated in section 122.174 of the Revised Code. At the time the	3566
	lirector gives public notice under division (A） of section	3567
	19.03 of the Revised Code of the adoption of the rules, the	3568
	lirector shall submit copies of the proposed rules to the	3569
n the senate and the house of representatives.	hairpersons of the standing committees on economic development	3570 3571
	(J) For the purposes of this section, a taxpayer may	3572
		3573 3574
	nder subchapter S of chapter one of subtitle A of the Internal
	evenue Code, or any other business entity through which income	3575
	lows as a distributive share to its owners. A partnership, S-	3576
		3577
	redit received under this section through to the persons to	3578
	hom the income or profit of the partnership, S-corporation, or	3579
		3580
	nnual report required under division (D)(6) of this section.	3581
		3582
	hich the report is submitted. If the election is made, the	3583

S. B. No. 145 As Introduced

credit shall be apportioned among those persons in the same 3584
proportions as those in which the income or profit is 3585
distributed. 3586

(K)(1) If the director of housing and development determines that a taxpayer who has received a credit under this section is not complying with the requirements of the agreement, 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:

(a) If the taxpayer fails to comply with the requirement under division (D)(3) of this section, an amount determined in accordance with the following:

(i) 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;

3587
3588
3589
3590
3591
3592
3593
3594
3595
3596
3597
3598
3599
3600
3601
3602
3603
3604
3605
3606
3607
3608
3609
3610
3611
3612

(ii) 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.

(b) If, on the metric evaluation date, the taxpayer fails to substantially meet the job creation, payroll, or investment requirements included in the agreement, an amount determined at the discretion of the authority;

(c) If the taxpayer fails to substantially maintain the

S. B. No. 145 As Introduced

number of new full-time equivalent employees or amount of 3613
payroll required under the agreement at any time during the term 3614
of the agreement after the metric evaluation date, an amount 3615
determined at the discretion of the authority. 3616
(2) If a taxpayer files for bankruptcy and fails as 3617
described in division (K)(1)(a), (b), or (c) of this section, 3618
the director may immediately commence an action to recoup an 3619
amount not exceeding one hundred per cent of the sum of any 3620
credits received by the taxpayer under this section. 3621