122:16-1-07 Relocation of employees.

 

 

 

Rule Summary and Fiscal Analysis (Part A)

 

Department of Development

Agency Name

 

Retention Tax Credit Program                          Robert Stempfer

Division                                                                  Contact

 

77 South High Street 29th floor Columbus OH 43215-6130

614-466-1714

Agency Mailing Address (Plus Zip)                                       Phone                     Fax

122:16-1-07

Rule Number

NEW

TYPE of rule filing

Rule Title/Tag Line              Relocation of employees.

RULE SUMMARY

1.  Is the rule being filed consistent with the requirements of the RC 119.032 review? No

2.  Are you proposing this rule as a result of recent legislation? Yes

Bill Number: HBAm. Sub. 1 General Assembly: 128           Sponsor: Sykes

3.  Statute prescribing the procedure in accordance with the agency is required to adopt the rule: 119.03

4.  Statute(s) authorizing agency to adopt the rule: 122.171 (K)

5.  Statute(s) the rule, as filed, amplifies or implements: 122.171

6.  State the reason(s) for proposing (i.e., why are you filing,) this rule:

The rule outlines the treatment of employee relocation activities within a business participant's Ohio facilities and the effect on the tax credit analysis. The rule incorporates recent changes to the underlying statute.

7.  If the rule is an AMENDMENT, then summarize the changes and the content of the proposed rule; If the rule type is RESCISSION, NEW or NO CHANGE, then summarize the content of the rule:

Relocation of employees from one Ohio jurisdiction to another continues to be of primary concern in development projects. Statutory changes reflect a more flexible approach to relocations. This rule provides guidance through notice requirements and the treatment of relocated payroll.

8.  If the rule incorporates a text or other material by reference and the agency claims the incorporation by reference is exempt from compliance with sections

121.71 to 121.74 of the Revised Code because the text or other material is generally available to persons who reasonably can be expected to be affected by the rule, provide an explanation of how the text or other material is generally available to those persons:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

9.  If the rule incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material electronically, provide an explanation of why filing the text or other material electronically was infeasible:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

10.  If the rule is being rescinded and incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material, provide an explanation of why filing the text or other material was infeasible:

Not Applicable.

11.  If revising or refiling this rule, identify changes made from the previously filed version of this rule; if none, please state so:

Incorporated grammatical changes made by LSC.

12.  119.032 Rule Review Date:

(If the rule is not exempt and you answered NO to question No. 1, provide the scheduled review date. If you answered YES to No. 1, the review date for this rule is the filing date.)

NOTE: If the rule is not exempt at the time of final filing, two dates are required: the current review date plus a date not to exceed 5 years from the effective date for Amended rules or a date not to exceed 5 years from the review date for No

Change rules.

FISCAL ANALYSIS

13.  Estimate the total amount by which this proposed rule would increase / decrease either revenues / expenditures for the agency during the current biennium (in dollars): Explain the net impact of the proposed changes to the budget of your agency/department.

This will have no impact on revenues or expenditures. 0

0

14.  Identify the appropriation (by line item etc.) that authorizes each expenditure necessitated by the proposed rule:

Section 259.20.60 of Am. Sub. HB 1 line item 4S00 195630

15.  Provide a summary of the estimated cost of compliance with the rule to all directly affected persons. When appropriate, please include the source for your information/estimated costs, e.g. industry, CFR, internal/agency:

The cost of compliance with this rule for the business participants should be negligible. Businesses must track employment positions and payroll transferred from within Ohio to the project location. While the relocation restrictions became more flexible, accurate reporting is required and there are consequences if thresholds are exceeded. The costs of this tracking will be more than offset by the program benefits.

16.  Does this rule have a fiscal effect on school districts, counties, townships, or municipal corporations? No

17.  Does this rule deal with environmental protection or contain a component dealing with environmental protection as defined in R. C. 121.39? No