Authorize grant program for retailers that sell donated goods
Legislative Analysis Report Authorize grant program for retailers that sell donated goods
1. Primary Purpose of the Bill
This bill creates a temporary grant program administered by the Ohio Department of Development to support nonprofit retailers that sell donated goods and provide job training. Eligible 501(c)(3) organizations can receive annual grants equal to up to 25 percent of the state sales tax they collected on donated goods in the previous fiscal year, capped at $1 million per organization per year. Grant funds must be used exclusively to provide job training and placement services for individuals facing workplace disadvantages, such as disabilities, mental health issues, criminal history, veteran status, or homelessness.
GrantsWorkforce DevelopmentTaxation
2. Changes to Existing Law
3. Key Information for Citizens
🗳️ What You Need to Know
- Nonprofit retailers that routinely sell donated goods and offer job training can apply for state grant funding.
- Grants are calculated as up to 25% of the state sales tax collected by the retailer on donated items, up to a maximum of $1,000,000 per organization per year.
- Grant money must be used solely to train and place individuals with workplace disadvantages into competitive employment.
- Recipients must file annual reports detailing their grant spending and the number of individuals served by July 31 following each fiscal year.
4. Entities Affected
- 501(c)(3) nonprofit retailers selling donated goods
- Individuals with workplace disadvantages (disabilities, mental health issues, criminal history, veteran status, homelessness)
- Ohio Department of Development
5. Regulatory Impact & Enforcement
Agency Authority: The Ohio Department of Development is authorized to design grant application procedures, approve or deny applications within 30 days, enter into funding agreements, review annual reports, and recover improperly spent funds.
Penalties & Mandates: Participating retailers must file an annual financial and participant report by July 31 and are mandated by agreement to return any grant funds not used for authorized workforce training and placement purposes.
Implementation Timeline: Appropriations apply to fiscal years 2026 and 2027. Grant recipient reporting is due by July 31 following each fiscal year in which funds were awarded.
6. Estimated Fiscal Impact
State Revenue Impact
Not applicable
Local Government Impact
Not applicable
Implementation Costs
$5,000,000 appropriated for FY 2026 and $5,000,000 appropriated for FY 2027 from the General Revenue Fund.
Net Annual Fiscal Effect
-$5,000,000 per year for FY 2026 and FY 2027
Policy doesn’t happen in a vacuum. Meet the representatives and senators who introduced this bill and are pushing it through the chamber. Click on any sponsor to see their district, party affiliation, and what other legislation they’ve championed this session.
Primary Sponsors
Elgin Rogers, Jr.
District
42
Chamber
House of Representatives
Party
Democrat
Nick Santucci
District
64
Chamber
House of Representatives
Party
Republican
Co-Sponsors
Related Topics
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Taxation & Finance
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Healthcare
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Business & Commerce
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Labor & Employment
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Rent & Housing
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Military & Veterans Affairs
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Status Changes
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Senate |
Governor |
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Referred to committee
Feb 26 2025
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Documents
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