As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 194 5
1997-1998 6
REPRESENTATIVES VESPER-METZGER-GARCIA-MOTTLEY-KRUPINSKI-SAWYER- 8
BATEMAN-HAINES-TERWILLEGER-O'BRIEN-OGG-MALLORY-COLONNA- 9
PERZ-MAIER-LUCAS-BRITTON-OPFER 10
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A B I L L
To amend sections 742.37, 742.3718, and 742.58 and 15
to enact section 742.3722 of the Revised Code to 16
institute certain monetary and qualification 17
adjustments for pensions, cost-of-living 19
allowances, and death benefits for the survivors 20
of certain Police and Firemen's Disability and 22
Pension Fund retirees. 23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 25
Section 1. That sections 742.37, 742.3718, and 742.58 be 28
amended and section 742.3722 of the Revised Code be enacted to 29
read as follows:
Sec. 742.37. The board of trustees of the police and 38
firemen's disability and pension fund shall adopt rules for the 40
management of the fund and for the disbursement of benefits and 41
pensions as set forth in this section. Any payment of a benefit 42
or pension under this section is subject to the provisions of 43
section 742.461 of the Revised Code. Notwithstanding any other 44
provision of this section, no pension or benefit paid or 45
determined under division (B) or (C) of this section shall exceed 46
the limit established by section 415 of the "Internal Revenue 47
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 48
(A) Persons who were receiving benefit or pension payments 50
from a police relief and pension fund established under former 51
section 741.32 of the Revised Code, or from a firemen's relief 52
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and pension fund, established under former section 521.02 or 54
741.02 of the Revised Code, at the time the assets of the fund 56
were transferred to the police and firemen's disability and 57
pension fund, shall receive benefit and pension payments from the 58
police and firemen's disability and pension fund in the same 61
amount and subject to the same conditions as such payments were 63
being made from the former fund on the date of the transfer. 65
(B) A member of the fund who, pursuant to law, elected to 67
receive benefits and pensions from a police relief and pension 68
fund established under former section 741.32 of the Revised Code, 70
or from a firemen's relief and pension fund established under 72
former section 741.02 of the Revised Code, in accordance with the 73
rules of the fund governing the granting of benefits or pensions 75
therefrom in force on April 1, 1947, shall receive benefits and 76
pensions from the police and firemen's disability and pension
fund in accordance with such rules; provided, that any member of 78
the fund who is not receiving a benefit or pension from the fund 79
on August 12, 1975, may, upon application for a benefit or 80
pension to be received on or after August 12, 1975, elect to 81
receive a benefit or pension in accordance with division (C) of 82
this section.
(C) Members of the fund who have not elected to receive 84
benefits and pensions from a police relief and pension fund or a 85
firemen's relief and pension fund in accordance with the rules of 87
the fund in force on April 1, 1947, shall receive pensions and 89
benefits in accordance with the following provisions: 90
(1) A member of the fund who has completed twenty-five 92
years of active service in a police or fire department and has 93
attained forty-eight years of age may, at the member's election, 95
retire from the police or fire department, and, upon notifying 96
the board in writing of the election, shall receive an annual 98
pension, payable in twelve monthly installments, in an amount 100
equal to a percentage of the member's average annual salary. The 101
percentage shall be the sum of two and one-half per cent for each 103
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of the first twenty years the member was in the active service of 104
the department, plus two per cent for each of the twenty-first to 106
twenty-fifth years the member was in the active service of the 107
department, plus one and one-half per cent for each year in 109
excess of twenty-five years the member was in the active service 110
of the department. The annual pension shall not exceed 112
seventy-two per cent of the member's average annual salary. 113
A member who completed twenty-five years of active service, 116
has resigned or been discharged, and has left the sum deducted 118
from the member's salary on deposit in the pension fund shall, 119
upon attaining forty-eight years of age, be entitled to receive a 121
normal service pension benefit computed and paid under division 122
(C)(1) of this section.
(2) A member of the fund who is permanently and totally 124
disabled as the result of the performance of the member's 125
official duties as a member of a police or fire department shall 127
be paid annual disability benefits until death, payable in twelve 128
monthly installments, in an amount equal to seventy-two per cent 129
of the member's annual salary for the last year the member was in 131
the active service of the police or fire department.
(3) A member of the fund who is partially disabled as the 133
result of the performance of the member's official duties as a 135
member of a police or fire department shall, if the disability 136
prevents the member from performing those duties and impairs the 138
member's earning capacity, receive annual disability benefits, 140
payable in twelve monthly installments, in an amount to be fixed 141
by the board. The board may increase or decrease the benefits 142
whenever the impairment of the member's earning capacity warrants 144
an increase or decrease, but in no event shall a benefit paid to 145
the member exceed sixty per cent of the member's average annual 147
salary. Each such member who has completed twenty-five or more 149
years of active service in the department shall receive annual 150
disability benefits, payable in twelve monthly installments, in 151
an amount equal to a percentage of the member's average annual 152
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salary. The percentage shall be the sum of two and one-half per 154
cent for each of the first twenty years the member was in the 155
active service of the department, plus two per cent for each of 158
the twenty-first to twenty-fifth years the member was in the 159
active service of the department, plus one and one-half per cent 161
for each year in excess of twenty-five years the member was in 162
the active service of the department. The annual disability 164
benefit shall not exceed seventy-two per cent of the member's
average annual salary. 165
(4) A member of the fund who is disabled as a result of 167
heart disease or any cardiovascular disease of a chronic nature 168
or any respiratory disease of a chronic nature, which disease or 169
any evidence of which disease was not revealed by the physical 170
examination passed by the member upon entry into the department, 171
is presumed to have incurred the disease while performing 172
official duties as a member of the department, unless the 173
contrary is shown by competent evidence. 174
If the disability prevents the member from performing 176
official duties and impairs the member's earning capacity, the 179
member shall be paid annual disability payments in accordance
with division (C)(2) or (3) of this section. 180
A member of the fund who applies for disability benefits as 182
a result of heart disease or any cardiovascular disease of a 183
chronic nature or any respiratory disease of a chronic nature, 184
which disease or any evidence of which disease was not revealed 185
by the physical examination passed by the member upon entry into 186
the department, shall be examined by two physicians designated by 187
the board of trustees of the police and firemen's disability and 189
pension fund, one of whom may be the attending physician. Each 190
examining physician shall submit a written report of the 191
examination findings to the board. 192
(5) A member of the fund who has completed five or more 194
years of active service in a police or fire department and has 195
incurred disability not caused or induced by the actual 196
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performance of the member's official duties as a member of the 198
department, or by the member's own negligence, such disability 199
preventing the member from performing the member's official 201
duties as a member of the department and impairing the member's 202
earning capacity, shall receive annual disability benefits, 204
payable in twelve monthly installments, in an amount to be fixed 205
by the board. The board may increase or decrease the monthly 206
benefits whenever the impairment in the member's earning capacity 207
warrants an increase or decrease, but in no event shall a benefit 208
paid to the member exceed the greater of five thousand dollars or 210
an amount equal to a percentage of the member's average annual 211
salary. The percentage shall be the sum of two and one-half per 213
cent for each of the first twenty years the member was in the 214
active service of the department, plus two per cent for each of 216
the twenty-first to twenty-fifth years the member was in the 217
active service of the department, plus one and one-half per cent 219
for each year in excess of twenty-five years the member was in 220
the active service of the department, or sixty per cent of the 222
average annual salary, whichever is smaller. 223
(6) A member of the fund who has served fifteen or more 225
years as an active member of a police or fire department and who 226
voluntarily resigns or is discharged from the department for any 228
reason other than dishonesty, cowardice, intemperate habits, or 229
conviction of a felony, shall receive an annual pension, payable 230
in twelve monthly installments, in an amount equal to one and 231
one-half per cent of the member's average annual salary 232
multiplied by the number of full years the member was in the 234
active service of the department. The pension payments shall not 235
commence until the member has attained the age of forty-eight 237
years and until twenty-five years have elapsed from the date on 238
which the member became a full-time regular police officer or 240
firefighter in the department. 241
(7) A member of the fund who has completed fifteen or more 243
years of active service in a police or fire department and who 244
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has attained sixty-two years of age, may retire from the 245
department and, upon notifying the board in writing of the 246
election to retire, shall receive an annual pension, payable in 247
twelve monthly installments, in an amount equal to a percentage 248
of the member's average annual salary. The percentage shall be 250
the sum of two and one-half per cent for each of the first twenty
years the member was in the active service of the department, 252
plus two per cent for each of the twenty-first to twenty-fifth 254
years the member was in the active service of the department, 256
plus one and one-half per cent for each year in excess of 258
twenty-five years the member was in the active service of the 260
department. The annual pension shall not exceed seventy-two per 262
cent of the member's average annual salary. 263
(8) The board of trustees of the police and firemen's 265
disability and pension fund shall notify a member of its final 267
action awarding a disability benefit to the member within thirty 268
days of its final action. The notice shall be sent by certified 270
mail, return receipt requested. Not later than ninety days after 271
receipt of notice from the board, the member shall elect, on a 273
form provided by the board, either to accept or waive the
disability benefit award. If the member elects to waive the 274
disability benefit award or fails to make an election within the 276
time period, the award shall be rescinded. A member who later 277
seeks a disability benefit award shall be required to make a new 279
application, which shall be dealt with in accordance with the 280
procedure used for original disability benefit applications. 281
With the exception of those persons who may make 283
application for increased benefits as provided in division (C)(3) 284
or (5) of this section or those persons who may make application 285
for benefits as provided in section 742.26 of the Revised Code, 286
no person receiving a pension or other benefit under division (C) 287
of this section on or after July 24, 1986, shall be entitled to 288
apply for any new, changed, or different benefit. 289
If a member covered by division (C) of this section dies 291
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prior to the time the member has received a payment and leaves a 293
surviving spouse or dependent child, the surviving spouse or 295
dependent child shall receive a pension under division (D) or (E) 296
of this section.
A person is not eligible to apply for or receive disability 298
benefits under division (C)(2), (3), (4), or (5) of this section 299
unless the person is a member of the fund on the date on which 300
the application for disability benefits is submitted to the fund. 301
(D)(1) A surviving spouse of a deceased member of the fund 303
shall receive a pension of four EIGHT hundred ten FIFTY dollars 305
per month during the natural life of the surviving spouse or 307
until the surviving spouse remarries, except that, if the 309
surviving spouse remarries on or after the effective date of this 310
amendment and at the time of remarriage has attained age 311
fifty-five, the pension shall continue. A pension terminated 312
under this division due to remarriage shall resume if either of 314
the following is the case:
(1)(a) The surviving spouse has attained age fifty-five at 316
the time of remarriage and the remarriage occurs on or after June 318
5, 1996;.
(2)(b) The remarriage is a first remarriage and it ceases 320
within two years due to divorce, annulment, dissolution OF 322
MARRIAGE, or death.
(2) IF A PENSION IS CONTINUED UNDER THIS DIVISION OR IS 324
TERMINATED DUE TO REMARRIAGE AND RESUMED UNDER THIS DIVISION, THE 325
SURVIVING SPOUSE SHALL RECEIVE ANY BENEFIT THAT IS PROVIDED 326
SURVIVING SPOUSES WHO ARE NOT REMARRIED. 327
(E) Each surviving child of a deceased member of the fund 329
shall receive a pension of one hundred eighteen FIFTY dollars per 331
month until the child attains the age of eighteen years, or 332
marries, whichever event occurs first. Benefits under this 334
division, however, shall continue to be payable to a child under 335
age twenty-two who is a student in and attending an institution 336
of learning or training pursuant to a program designed to 337
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complete in each school year the equivalent of at least 338
two-thirds of the full-time curriculum requirements of the 339
institution, as determined by the board of trustees of the police 340
and firemen's disability and pension fund. If any surviving 341
child, regardless of age at the time of the member's death, 343
because of physical or mental disability, is totally dependent 344
upon the deceased member for support at the time of decease, the 346
child shall receive a pension of one hundred eighteen FIFTY 348
dollars per month during the child's natural life or until the 350
child has recovered from the disability. 351
(F) If a deceased member of the fund leaves no surviving 353
spouse or surviving children, but leaves two parents dependent 354
upon the deceased member for support, each parent shall be paid a 356
monthly pension of seventy-nine ONE HUNDRED dollars. If there is 357
only one parent dependent upon the member for support, the parent 359
shall be paid a monthly pension of one TWO hundred fifty-eight 361
dollars. The pensions provided for in this division shall be 363
paid during the natural life of the surviving parents, or until 364
dependency ceases, or until remarriage, whichever event occurs 365
first.
(G) Subject to the provisions of section 742.461 of the 367
Revised Code, a member of the fund who voluntarily resigns or is 369
removed from active service in a police or fire department is 370
entitled to receive an amount equal to the sums deducted from the 371
member's salary and credited to the member's account in the fund, 372
except that a member receiving a disability benefit or service 373
pension is not entitled to receive any return of contributions to 374
the fund.
(H) On and after January 1, 1970, all pensions shall be 376
increased in accordance with the following provisions: 377
(1) A member of the fund who retired prior to January 1, 379
1967, has attained age sixty-five on January 1, 1970, and was 380
receiving a pension on December 31, 1969, pursuant to division 381
(B) or division (C)(1), (2), (3), (4), or (5) of this section, 382
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shall have the pension increased by ten per cent. 383
(2) The monthly pension payable to eligible surviving 385
spouses under division (D) of this section shall be increased by 386
forty dollars for each surviving spouse receiving a pension on 387
December 31, 1969. 388
(3) The monthly pension payable to each eligible child 390
under division (E) of this section shall be increased by ten 391
dollars for each child receiving a pension on December 31, 1969. 392
(4) The monthly pension payable to each eligible dependent 394
parent under division (F) of this section shall be increased by 395
thirty dollars for each parent receiving a pension on December 396
31, 1969. 397
(5) A member of the fund, including a survivor of a 399
member, who is receiving a pension in accordance with the rules 400
governing the granting of pensions and benefits in force on April 401
1, 1947, that provide an increase in the original pension from 403
time to time pursuant to changes in the salaries of active 404
members, shall not be eligible for the benefits provided in this 405
division. 406
(I) On and after January 1, 1977, a member of the fund who 408
was receiving a pension or benefit on December 31, 1973, under 409
division (A), (B), (C)(1), (2), or (7) of this section shall have 410
the pension or benefit increased as follows: 411
(1) If the member's annual pension or benefit is less than 413
two thousand seven hundred dollars, it shall be increased to 415
three thousand dollars. 416
(2) If the member's annual pension or benefit is two 418
thousand seven hundred dollars or more, it shall be increased by 420
three hundred dollars. 421
The following shall not be eligible to receive increased 423
pensions or benefits as provided in this division: 424
(a) A member of the fund who is receiving a pension or 426
benefit in accordance with the rules in force on April 1, 1947, 427
governing the granting of pensions and benefits, which THAT 428
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provide an increase in the original pension or benefit from time 430
to time pursuant to changes in the salaries of active members; 431
(b) A member of the fund who is receiving a pension or 433
benefit under division (A) or (B) of this section, based on 434
funded volunteer or funded part-time service, or off-duty 435
disability, or partial on-duty disability, or early vested 436
service; 437
(c) A member of the fund who is receiving a pension under 439
division (C)(1) of this section, based on funded volunteer or 440
funded part-time service. 441
(J) On and after July 1, 1977, a member of the fund who 443
was receiving an annual pension or benefit on December 31, 1973, 444
pursuant to division (B) of this section, based upon partial 445
disability, off-duty disability, or early vested service, or 446
pursuant to division (C)(3), (5), or (6) of this section, shall 447
have such annual pension or benefit increased by three hundred 448
dollars. 449
The following are not eligible to receive the increase 451
provided by this division: 452
(1) A member of the fund who is receiving a pension or 454
benefit in accordance with the rules in force on April 1, 1947, 455
governing the granting of pensions and benefits, which THAT 456
provide an increase in the original pension or benefit from time 458
to time pursuant to changes in the salaries of active members; 459
(2) A member of the fund who is receiving a pension or 461
benefit under division (B), or division (C)(3), (5), or (6) of 462
this section based on volunteer or part-time service. 463
(K)(1) Except as otherwise provided in this division, 465
every person who on July 24, 1986, is receiving an age and 466
service or disability pension, allowance, or benefit pursuant to 467
this chapter in an amount less than thirteen thousand dollars a 468
year that is based upon an award made effective prior to February 469
28, 1984, shall receive an increase of six hundred dollars a year 470
or the amount necessary to increase the pension or benefit to 471
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four thousand two hundred dollars after all adjustments required 472
by this section, whichever is greater. 473
(2) Division (K)(1) of this section does not apply to the 475
following: 476
(a) A member of the fund who is receiving a pension or 478
benefit in accordance with rules in force on April 1, 1947, that 479
govern the granting of pensions and benefits and that provide an 480
increase in the original pension or benefit from time to time 481
pursuant to changes in the salaries of active members; 482
(b) A member of the fund who is receiving a pension or 484
benefit based on funded volunteer or funded part-time service. 485
(L) On and after July 24, 1986: 487
(1) The pension of each person receiving a pension under 489
division (D) of this section on July 24, 1986, shall be increased 490
to three hundred ten dollars per month. 491
(2) The pension of each person receiving a pension under 493
division (E) of this section on July 24, 1986, shall be increased 494
to ninety-three dollars per month. 495
Sec. 742.3718. (A) Except as otherwise provided in this 504
division, each person who on the effective date of this section 506
SEPTEMBER 9, 1988, is receiving a pension or benefit of less than 508
five thousand dollars annually under division (A) or (B) of 509
section 742.37 of the Revised Code on the basis of disability or 510
service of twenty-five years or more or under division (C)(1), 511
(2), or (5) of that section shall have the pension or benefit 512
increased to five thousand dollars a year, effective July 1, 513
1988. This division does not apply to any person receiving a 514
pension or benefit based on funded volunteer or funded part-time 515
service.
(B) On and after July 1, 1988: 517
(1) The pension of each person receiving a pension or 519
benefit under division (D) of section 742.37 of the Revised Code 520
shall be increased to four hundred ten dollars a month. 521
(2) The pension of each person receiving a pension or 523
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benefit under division (E) of section 742.37 of the Revised Code 524
shall be increased to one hundred eighteen dollars a month. 525
(C) ON AND AFTER THE EFFECTIVE DATE OF THIS AMENDMENT: 527
(1) THE PENSION OF EACH PERSON RECEIVING A PENSION UNDER 529
DIVISION (D)(1) OF SECTION 742.37 OF THE REVISED CODE SHALL BE 530
INCREASED TO EIGHT HUNDRED FIFTY DOLLARS A MONTH. 532
(2) THE PENSION OF EACH PERSON RECEIVING A PENSION OR 534
BENEFIT UNDER DIVISION (E) OF SECTION 742.37 OF THE REVISED CODE 535
SHALL BE INCREASED TO ONE HUNDRED FIFTY DOLLARS A MONTH. 536
(3) THE PENSION OF EACH PERSON RECEIVING A PENSION UNDER 538
DIVISION (F) OF SECTION 742.37 OF THE REVISED CODE SHALL BE 539
INCREASED AS FOLLOWS:
(a) IN THE CASE OF TWO DEPENDENT PARENTS, ONE HUNDRED 541
DOLLARS EACH; 542
(b) IN THE CASE OF ONE DEPENDENT PARENT, TWO HUNDRED 544
DOLLARS.
Sec. 742.3722. AS USED IN THIS SECTION, "ELIGIBLE PERSON" 546
MEANS A PERSON RECEIVING A PENSION UNDER DIVISION (D)(1), (E), OR 548
(F) OF SECTION 742.37 OF THE REVISED CODE WHO HAS BEEN RECEIVING 549
THE PENSION FOR TWELVE MONTHS OR LONGER. 550
ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, THE 553
BOARD OF TRUSTEES OF THE POLICE AND FIREMEN'S DISABILITY AND
PENSION FUND SHALL DETERMINE THE AVERAGE PERCENTAGE CHANGE IN THE 554
CONSUMER PRICE INDEX PREPARED BY THE UNITED STATES BUREAU OF 556
LABOR STATISTICS (U.S. CITY AVERAGE FOR URBAN WAGE EARNERS AND 560
CLERICAL WORKERS: "ALL ITEMS 1982-84 = 100") FOR THE 561
TWELVE-CALENDAR-MONTH PERIOD PRIOR TO THE FIRST DAY OF JANUARY 562
OVER THE NEXT PRECEDING TWELVE-CALENDAR-MONTH PERIOD, AS REPORTED 563
BY THE BUREAU. ON A DETERMINATION BY THE BOARD THAT THIS CHANGE 564
IS AN INCREASE, OR THAT THE CHANGE PLUS THE ACCUMULATION 565
DESCRIBED IN THIS SECTION IS AN INCREASE, THE BOARD SHALL
INCREASE PENSIONS PAYABLE TO ELIGIBLE PERSONS BY A PERCENTAGE 566
EQUAL TO THE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX OR 567
TO THAT INCREASE PLUS THE ACCUMULATION, EXCEPT THAT THE INCREASE 568
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SHALL NOT EXCEED THREE PER CENT AND NO PENSION SHALL EXCEED THE 569
LIMIT ESTABLISHED BY SECTION 415 OF THE "INTERNAL REVENUE CODE OF 570
1986," 100 STAT. 2085, 26 U.S.C. 415, AS AMENDED. 571
ANY PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX IN ANY 573
YEAR THAT IS IN EXCESS OF THREE PER CENT SHALL BE ACCUMULATED AND 574
USED TO DETERMINE INCREASES IN SUCCEEDING YEARS. 575
THE FIRST INCREASE UNDER THIS SECTION IS PAYABLE TO 577
ELIGIBLE PERSONS BEGINNING JUNE 30, 1998. THE INCREASED AMOUNT 578
IS PAYABLE FOR THE ENSUING TWELVE-MONTH PERIOD OR UNTIL THE NEXT 580
INCREASE IS GRANTED UNDER THIS SECTION, WHICHEVER IS LATER. 581
THE DATE OF THE FIRST INCREASE UNDER THIS SECTION IS THE 583
ANNIVERSARY DATE FOR ANY FUTURE INCREASES. THE PENSION USED IN 584
THE FIRST CALCULATION OF AN INCREASE UNDER THIS SECTION SHALL 585
REMAIN AS THE BASE FOR ALL FUTURE INCREASES PAID UNDER THIS 586
SECTION, UNLESS A NEW BASE IS ESTABLISHED BY LAW.
THE BOARD OF TRUSTEES SHALL ADOPT ANY RULES NECESSARY TO 588
IMPLEMENT THIS SECTION. 589
Sec. 742.58. On the death of a member of the police and 598
firemen's disability and pension fund who at the time of death is 599
receiving a retirement pension or disability benefits, a lump sum 600
payment of one thousand dollars shall be paid to the member's 601
surviving spouse OR, IF THERE IS NO SURVIVING SPOUSE, TO THE 602
BENEFICIARY THE MEMBER DESIGNATED ON A FORM PROVIDED BY THE FUND.
If there is no surviving spouse OR DESIGNATED BENEFICIARY, the 603
payment shall be made to the member's estate. 604
Application for the payment shall be made on a form 606
provided by the fund.
Section 2. That existing sections 742.37, 742.3718, and 608
742.58 of the Revised Code are hereby repealed. 609
Section 3. Section 742.3722 of the Revised Code shall take 611
effect on April 1, 1998. 612