As Introduced                            1            

122nd General Assembly                                             4            

   Regular Session                                 H. B. No. 363   5            

      1997-1998                                                    6            


                REPRESENTATIVES THOMPSON-JOHNSON                   8            


                                                                   10           

                           A   B I L L                                          

             To amend sections 121.03, 2317.45, 4121.12,           12           

                4121.121, 4121.125, and 4123.511 and to enact      14           

                section 4123.49 of the Revised Code to  make       15           

                appropriations for the Bureau of Workers'          16           

                Compensation for the biennium  beginning July 1,   17           

                1997, and ending June 30, 1999, and to provide     18           

                authorization and conditions for the operation of  19           

                Bureau of Workers' Compensation  programs.         20           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        21           

      Section 1.  That sections 121.03, 2317.45, 4121.12,          23           

4121.121, 4121.125, and 4123.511 be amended and section 4123.49    25           

of the Revised Code be enacted to read as follows:                              

      Sec. 121.03.  The following administrative department heads  36           

shall be appointed by the governor, with the advice and consent    37           

of the senate, and shall hold their offices during the term of     38           

the appointing governor, except as provided in division (W) of     40           

this section, and are subject to removal at the pleasure of the    41           

governor.                                                                       

      (A)  The director of budget and management;                  43           

      (B)  The director of commerce;                               45           

      (C)  The director of transportation;                         47           

      (D)  The director of agriculture;                            49           

      (E)  The director of human services;                         52           

      (F)  Until July 1, 1997, the director of liquor control;     54           

      (G)  The director of public safety;                          56           

      (H)  The superintendent of insurance;                        58           

                                                          2      

                                                                 
      (I)  The director of development;                            60           

      (J)  The tax commissioner;                                   62           

      (K)  The director of administrative services;                64           

      (L)  The administrator of the bureau of employment           66           

services;                                                          67           

      (M)  The director of natural resources;                      69           

      (N)  The director of mental health;                          71           

      (O)  The director of mental retardation and developmental    73           

disabilities;                                                      74           

      (P)  The director of health;                                 76           

      (Q)  The director of youth services;                         78           

      (R)  The director of rehabilitation and correction;          80           

      (S)  The director of environmental protection;               82           

      (T)  The director of aging;                                  84           

      (U)  The director of alcohol and drug addiction services;    86           

      (W)(V)  The administrator of workers' compensation who       88           

meets the qualifications required under division (A) of section    89           

4121.121 of the Revised Code, who shall serve as administrator,    90           

subject to removal at the pleasure of the governor, until the      91           

date the workers' compensation oversight commission appoints the   92           

administrator as provided in division (F)(10) of section 4121.12   93           

of the Revised Code.                                                            

      Sec. 2317.45.  (A)  As used in this section:                 102          

      (1)  "Collateral benefits" means benefits that are paid by   104          

any source, including workers' compensation benefits, to or on     106          

behalf of the plaintiff as a result of an injury or loss to                     

person or property, regardless of whether there is an obligation   107          

to pay back the money or other benefits, in whole or in part,      108          

upon recovery in a tort action.  "Collateral benefits" does not    109          

include life insurance proceeds.                                                

      (2)  "Tort action" means a civil action for damages for      112          

injury, death, or loss to person or property.  "Tort action"       113          

includes a product liability claim but does not include a civil    114          

action for damages for a breach of contract or another agreement   115          

                                                          3      

                                                                 
between persons.                                                                

      (3)  "Trier of fact" means the jury or, in a nonjury         117          

action, the court.                                                              

      (B)  In determining the amount of the compensatory damages   120          

that are recoverable by the plaintiff in a tort action, the trier  122          

of fact shall consider, if presented in the tort action, relevant               

collateral benefits that have been paid, or that the source of     123          

the benefits has acknowledged are payable, from insurance other    124          

than insurance for which the plaintiff, spouse of the plaintiff,   125          

or parent of the plaintiff if the plaintiff is a minor, has paid   126          

a premium, insurance that is subject to a right of subrogation,    127          

WORKERS' COMPENSATION BENEFITS THAT ARE SUBJECT TO A RIGHT OF      128          

SUBROGATION, or insurance that has any other obligation of         130          

repayment, including, but not limited to, evidence of the amount   131          

of the collateral benefit and of the costs, premiums, or charges                

for the collateral benefits.                                       132          

      (C)  This section does not apply as follows:                 134          

      (1)  In tort actions against the state in the court of       136          

claims.  Division (D) of section 2743.02 or division (B)(2) of     138          

section 3345.40 of the Revised Code applies to collateral          139          

recoveries or sources of plaintiffs in those tort actions.                      

      (2)  In tort actions against political subdivisions of this  141          

state that are commenced under or are subject to Chapter 2744. of  142          

the Revised Code.  Division (B) of section 2744.05 of the Revised  144          

Code applies to collateral sources of plaintiffs in those tort                  

actions.                                                           145          

      (D)  This section shall be considered to be purely remedial  147          

in operation and shall be applied in a remedial manner in any      148          

civil action commenced on or after the effective date of the       149          

amendment to this section JANUARY 27, 1997, in which this section  150          

is relevant, regardless of when the cause of action accrued and    151          

notwithstanding any other section of the Revised Code or prior     152          

rule of law of this state, but shall not be construed to apply to  153          

any civil action pending prior to the effective date of the        154          

                                                          4      

                                                                 
amendment to this section JANUARY 27, 1997.                        155          

      Sec. 4121.12.  (A)  There is hereby created the workers'     165          

compensation oversight commission consisting of nine members, of   166          

which members the governor shall appoint five with the advice and  167          

consent of the senate.  Of the five members the governor           169          

appoints, two shall be individuals who, on account of their        171          

previous vocation, employment, or affiliations, can be classed as  173          

representative of employees, at least one of whom is                            

representative of employees who are members of an employee         175          

organization; two shall be individuals who, on account of their    177          

previous vocation, employment, or affiliations, can be classed as  179          

representative of employers, one of whom represents self-insuring  180          

employers and one of whom has experience as an employer in         181          

compliance with section 4123.35 of the Revised Code other than a   183          

self-insuring employer, and one of those two representatives also               

shall represent employers whose employees are not members of an    184          

employee organization; and one shall represent the public and      185          

also be an individual who, on account of the individual's          186          

previous vocation, employment, or affiliations, cannot be classed  187          

as either predominantly representative of employees or of          188          

employers.  The governor shall select the chairperson of the       189          

commission who shall serve as chairperson at the pleasure of the   190          

governor.  No more than three members appointed by the governor    193          

shall belong to or be affiliated with the same political party.    194          

      Each of these five members shall have at least three years'  196          

experience in the field of insurance, finance, workers'            197          

compensation, law, accounting, actuarial, personnel, investments,  198          

or data processing, or in the management of an organization whose  199          

size is commensurate with that of the bureau of workers'           200          

compensation.  At least one of these five members shall be an      201          

attorney licensed under Chapter 4705. of the Revised Code to       202          

practice law in this state.                                        203          

      (B)  Of the initial appointments made to the commission,     206          

the governor shall appoint one member who represents employees to  207          

                                                          5      

                                                                 
a term ending one year after September 1, 1995, one member who     208          

represents employers to a term ending two years after the          210          

effective date of this section, the member who represents the      211          

public to a term ending three years after September 1, 1995, one   214          

member who represents employees to a term ending four years after  215          

September 1, 1995, and one member who represents employers to a    217          

term ending five years after September 1, 1995.  Thereafter,       219          

terms of office shall be for five years, with each term ending on  220          

the same day of the same month as did the term that it succeeds.   222          

Each member shall hold office from the date of his appointment     223          

until the end of the term for which the member was appointed.      224          

      The governor shall not appoint any person to more than two   226          

full terms of office on the commission.  This restriction does     227          

not prevent the governor from appointing a person to fill a        228          

vacancy caused by the death, resignation, or removal of a          229          

commission member and also appointing that person twice to full    230          

terms on the commission, or from appointing a person previously    231          

appointed to fill less than a full term twice to full terms on     232          

the commission.  Any member appointed to fill a vacancy occurring  233          

prior to the expiration date of the term for which the member's    235          

predecessor was appointed shall hold office as a member for the                 

remainder of that term.  A member shall continue in office         236          

subsequent to the expiration date of the member's term until a     238          

successor takes office or until a period of sixty days has         239          

elapsed, whichever occurs first.                                   240          

      (C)  In making appointments to the commission, the governor  243          

shall select the members from the list of names submitted by the   246          

workers' compensation oversight commission nominating committee    247          

pursuant to this division.  Within fourteen days after the         248          

governor calls the initial meeting of the nominating committee                  

pursuant to division (C) of section 4121.123 of the Revised Code,  249          

the nominating committee shall submit to the governor, for the     252          

initial appointments, a list containing four separate names for    254          

each of the members on the commission.  Within fourteen days       256          

                                                          6      

                                                                 
after the submission of the list, the governor shall appoint       257          

individuals from the list.                                                      

      For the appointment of the member who is representative of   259          

employees who are members of an employee organization, both for    260          

initial appointments and for the filling of vacancies, the list    261          

of four names submitted by the nominating committee shall be       262          

comprised of four individuals who are members of the executive     263          

committee of the largest statewide labor federation.                            

      Thereafter, within sixty days after a vacancy occurring as   267          

a result of the expiration of a term and within thirty days after  268          

other vacancies occurring on the commission, the nominating        269          

committee shall submit a list containing four names for each       271          

vacancy.  Within fourteen days after the submission of the list,   273          

the governor shall appoint individuals from the list.  With        275          

respect to the filling of vacancies, the nominating committee      276          

shall provide the governor with a list of four individuals who     277          

are, in the judgment of the nominating committee, the most fully   278          

qualified to accede to membership on the commission.  The          279          

nominating committee shall not include the name of an individual   280          

upon the list for the filling of vacancies if the appointment of                

that individual by the governor would result in more than three    281          

members of the commission belonging to or being affiliated with    282          

the same political party.  The committee shall include on the      283          

list for the filling of vacancies only the names of attorneys      284          

admitted to practice law in this state if, to fulfill the                       

requirement of division (A) of section 4121.12 of the Revised      285          

Code, the vacancy must be filled by an attorney.                   286          

      In order for the name of an individual to be submitted to    288          

the governor under this division, the nominating committee shall   290          

approve the individual by an affirmative vote of a majority of     292          

its members.                                                                    

      (D)  The remaining four members of the commission shall be   295          

the chairperson and ranking minority member of the standing        296          

committees of the house of representatives and of the senate to                 

                                                          7      

                                                                 
which legislation concerning this chapter and Chapters 4123.,      297          

4127., and 4131. of the Revised Code normally are referred, or a   299          

designee of the chairperson or ranking minority member, provided   300          

that the designee is a member of the standing committee.           301          

Legislative members shall serve during the session of the general  302          

assembly to which they are elected and for as long as they are     303          

members of the general assembly.  Legislative members shall serve  304          

in an advisory capacity to the commission and shall have no        306          

voting rights on matters coming before the commission.             308          

Membership on the commission by legislative members shall not be   309          

deemed as holding a public office.                                 310          

      (E)  All members of the commission shall receive their       313          

reasonable and necessary expenses pursuant to section 126.31 of    314          

the Revised Code while engaged in the performance of their duties  316          

as members.  Legislative members also shall receive fifty dollars  317          

per meeting that they attend.  Members appointed by the governor   318          

also shall receive an annual salary as follows:                                 

      (a)(1)  On and before August 31, 1998, not to exceed six     321          

thousand dollars payable at the rate of five hundred dollars per   322          

month.  A member shall receive the monthly five hundred dollar     323          

salary only if the member has attended at least one meeting of     325          

the commission during that month.  A member may receive no more                 

than the monthly five hundred dollar salary regardless of the      327          

number of meetings held by the commission during a month or the    328          

number of meetings in excess of one within a month that the        329          

member attends.                                                                 

      (b)(2)  After August 31, 1998, not to exceed eighteen        331          

thousand dollars payable at the rate of fifteen hundred dollars    332          

per month.  A member shall receive the monthly fifteen hundred     333          

dollar salary only if the member has attended at least one         334          

meeting of the commission during that month.  A member may         335          

receive no more than the monthly fifteen hundred dollar salary                  

regardless of the number of meetings held by the commission        336          

during the month or the number of meetings in excess of one        337          

                                                          8      

                                                                 
within a month that the member attends.                            338          

      The administrator of workers' compensation shall provide     340          

professional and clerical assistance to the commission, as the     341          

commission considers appropriate.                                  342          

      (F)  The commission shall:                                   344          

      (1)  Review progress of the bureau in meeting its cost and   347          

quality objectives and in complying with this chapter and          348          

Chapters 4123., 4127., and 4131. of the Revised Code;              349          

      (2)  Issue an annual report on the cost and quality          351          

objectives of the bureau to the president of the senate, the       353          

speaker of the house of representatives, and the governor;         354          

      (3)  Review all independent financial audits of the bureau.  356          

The administrator shall provide access to records of the bureau    357          

to facilitate the review required under this division.             358          

      (4)  Study issues as requested by the administrator or the   360          

governor;                                                                       

      (5)  Contract with an independent actuarial firm to assist   362          

the commission in making recommendations to the administrator      363          

regarding premium rates;                                                        

      (6)  Establish objectives, policies, and criteria for the    366          

administration of the investment program that include asset        368          

allocation targets and ranges, risk factors, asset class                        

benchmarks, time horizons, total return objectives, and            369          

performance evaluation guidelines, and monitor the                 371          

administrator's progress in implementing the objectives,           372          

policies, and criteria on a quarterly basis.  The commission                    

shall publish the objectives, policies, and criteria no less than  374          

annually and shall make copies available to interested parties.    375          

The commission shall prohibit, on a prospective basis, specific    377          

investment activity it finds to be contrary to its investment                   

objectives, policies, and criteria.                                378          

      The investment policy in existence on the effective date of  380          

this amendment shall continue until the commission approves        381          

objectives, policies, and criteria for the administration of the   382          

                                                          9      

                                                                 
investment program pursuant to this section.                       383          

      (7)  Advise and consent on all of the following:             385          

      (a)  Administrative rules the administrator submits to it    388          

pursuant to division (B)(5) of section 4121.121 of the Revised                  

Code for the classification of occupations or industries, for      390          

premium rates and contributions, for the amount to be credited to  391          

the surplus fund, for rules and systems of rating, rate            392          

revisions, and merit rating;                                                    

      (b)  The overall policy of the bureau of workers'            395          

compensation as set by the administrator;                                       

      (c)  The duties and authority conferred upon the             397          

administrator pursuant to section 4121.37 of the Revised Code;     398          

      (d)  Rules the administrator adopts for the health           400          

partnership program and the qualified health plan system, as       401          

provided in sections 4121.44, 4121.441, and 4121.442 of the        402          

Revised Code.                                                                   

      (8)  Perform all duties required under section 4121.125 of   404          

the Revised Code;                                                  405          

      (9)  After August 31, 1998, appoint an administrator who     407          

meets the qualifications required under section 4121.121 of the    408          

Revised Code and fix the salary of the administrator, the amount   410          

of which the commission shall base upon the experience of the      412          

administrator and the responsibilities and duties of the                        

administrator pursuant to this chapter and Chapters 4123., 4127.,  413          

and 4131. of the Revised Code.                                     414          

      (G)  The commission may enter into an employment contract    416          

with an administrator it appoints, provided that the contract      417          

does not exceed two years in length.                               419          

      (H)  As used in this section, "employee organization" means  421          

any labor or bona fide organization in which employees             422          

participate and which exists for the purpose, in whole or in       424          

part, of dealing with employers concerning grievances, labor       425          

disputes, wages, hours, terms and other conditions of employment.  426          

      Sec. 4121.121.  (A)  There is hereby created the bureau of   436          

                                                          10     

                                                                 
workers' compensation, which shall be administered by the          437          

administrator of workers' compensation.  A person appointed to     438          

the position of administrator shall possess significant            439          

management experience in effectively managing an organization or   440          

organizations of substantial size and complexity.  Before                       

September 1, 1998, the THE governor shall appoint the              442          

administrator as provided in section 121.03 of the Revised Code,   443          

and the administrator shall serve at the pleasure of the           445          

governor.  The governor shall fix the administrator's salary on    447          

the basis of the administrator's experience and the                             

administrator's responsibilities and duties under this chapter     449          

and Chapter CHAPTERS 4123., 4127., and 4131. of the Revised Code.  450          

The governor shall not appoint to the position of administator     451          

any person who has, or whose spouse has, given a contribution to                

the campaign committee of the governor in an amount greater than   453          

one thousand dollars during the two-year period immediately        454          

preceding the date of the appointment of the administrator.                     

After August 31, 1998, the workers' compensation oversight         457          

commission shall appoint the administrator as provided in                       

division (F)(9) of section 4121.12 of the Revised Code, and the    459          

administrator shall serve at the pleasure of the oversight         461          

commission.  The oversight commission shall fix the                462          

administrator's salary on the basis of the administrator's                      

experience and the administrator's responsibilities and duties     463          

under this chapter and Chapters 4123., 4127., and 4131. of the     465          

Revised Code.                                                                   

      The administrator shall hold no other public office and      467          

shall devote full time to the duties of administrator.  Before     469          

entering upon the duties of the office, the administrator shall    470          

take an oath of office as required by sections 3.22 and 3.23 of    471          

the Revised Code, and shall file in the office of the secretary    472          

of state, a bond signed by the administrator and by surety         473          

approved by the governor, for the sum of fifty thousand dollars    475          

payable to the state, conditioned upon the faithful performance    476          

                                                          11     

                                                                 
of the administrator's duties.                                                  

      (B)  The administrator is responsible for the management of  479          

the bureau of workers' compensation and for the discharge of all   480          

administrative duties imposed upon the administrator in this       481          

chapter and Chapters 4123., 4127., and 4131. of the Revised Code,  483          

and in the discharge thereof shall do all of the following:        484          

      (1)  Establish the overall administrative policy of the      487          

bureau for the purposes of this chapter and Chapters 4123.,                     

4127., and 4131. of the Revised Code, and perform all acts and     488          

exercise all authorities and powers, discretionary and otherwise   490          

that are required of or vested in the bureau or any of its         491          

employees in this chapter and Chapters 4123., 4127., and 4131. of  492          

the Revised Code, except the acts and the exercise of authority    493          

and power that is required of and vested in the oversight          494          

commission or the industrial commission pursuant to those          495          

chapters.  The treasurer of state shall honor all warrants signed  496          

by the administrator, or by one or more of the administrator's     497          

employees, authorized by the administrator in writing, or bearing  499          

the facsimile signature of the administrator or such employee      500          

under sections 4123.42 and 4123.44 of the Revised Code.            501          

      (2)  Employ, direct, and supervise all employees required    503          

in connection with the performance of the duties assigned to the   504          

bureau by this chapter and Chapters 4123., 4127., and 4131. of     505          

the Revised Code, and may establish job classification plans and   506          

compensation for all employees of the bureau provided that this    507          

grant of authority shall not be construed as affecting any         508          

employee for whom the state employment relations board has         509          

established an appropriate bargaining unit under section 4117.06   510          

of the Revised Code.  All positions of employment in the bureau    511          

are in the classified civil service except those employees the     512          

administrator may appoint to serve at the administrator's          513          

pleasure in the unclassified civil service pursuant to section     514          

124.11 of the Revised Code.  The administrator shall fix the       515          

salaries of employees the administrator appoints to serve at the   517          

                                                          12     

                                                                 
administrator's pleasure, including the chief operating officer,   518          

staff physicians, ATTORNEYS OF THE BUREAU'S LEGAL SECTION AND                   

THEIR IMMEDIATE SUPERVISORS, and other senior management           519          

personnel of the bureau.                                           521          

      THE ADMINISTRATOR MAY APPOINT A PERSON HOLDING A CERTIFIED   523          

POSITION IN THE CLASSIFIED SERVICE TO ANY STATE POSITION IN THE    524          

UNCLASSIFIED SERVICE OF THE BUREAU OF WORKERS' COMPENSATION.  A    525          

PERSON SO APPOINTED SHALL RETAIN THE RIGHT TO RESUME THE POSITION  527          

AND STATUS HELD BY THE PERSON IN THE CLASSIFIED SERVICE                         

IMMEDIATELY PRIOR TO THE PERSON'S APPOINTMENT IN THE UNCLASSIFIED  529          

SERVICE.  IF THE POSITION THE PERSON PREVIOUSLY HELD HAS BEEN      530          

FILLED OR PLACED IN THE UNCLASSIFIED SERVICE, OR IS OTHERWISE      531          

UNAVAILABLE, THE PERSON SHALL BE APPOINTED TO A POSITION IN THE    532          

CLASSIFIED SERVICE WITHIN THE BUREAU THAT THE ADMINISTRATOR        533          

CERTIFIES IS COMPARABLE IN COMPENSATION TO THE POSITION THE        534          

PERSON PREVIOUSLY HELD.  REINSTATEMENT TO A POSITION IN THE        535          

CLASSIFIED SERVICE SHALL BE TO A POSITION SUBSTANTIALLY EQUAL TO   536          

THAT HELD PREVIOUSLY, AS CERTIFIED BY THE ADMINISTRATOR.  SERVICE  537          

IN THE POSITION IN THE UNCLASSIFIED SERVICE SHALL BE COUNTED AS    538          

SERVICE IN THE POSITION IN THE CLASSIFIED SERVICE HELD BY THE      539          

PERSON IMMEDIATELY PRIOR TO THE PERSON'S APPOINTMENT IN THE        540          

UNCLASSIFIED SERVICE.  WHEN A PERSON IS REINSTATED TO A POSITION   541          

IN THE CLASSIFIED SERVICE AS PROVIDED IN THIS SECTION, THE PERSON  542          

IS ENTITLED TO ALL RIGHTS, STATUS, AND BENEFITS ACCRUING TO THE    543          

POSITION DURING THE PERSON'S TIME OF SERVICE IN THE POSITION IN    544          

THE UNCLASSIFIED SERVICE.                                          545          

      (3)  Reorganize the work of the bureau, its sections,        547          

departments, and offices to the extent necessary to achieve the    548          

most efficient performance of its functions and to that end may    549          

establish, change, or abolish positions and assign and reassign    550          

duties and responsibilities of every employee of the bureau.  All  551          

persons employed by the commission in positions that, after        553          

November 3, 1989, are supervised and directed by the               554          

administrator under this section are transferred to the bureau in  555          

                                                          13     

                                                                 
their respective classifications but subject to reassignment and   556          

reclassification of position and compensation as the               557          

administrator determines to be in the interest of efficient        558          

administration.  The civil service status of any person employed   559          

by the commission is not affected by this section.  Personnel      560          

employed by the bureau or the commission who are subject to        561          

Chapter 4117. of the Revised Code shall retain all of their        562          

rights and benefits conferred pursuant to that chapter as it       563          

presently exists or is hereafter amended and nothing in this       564          

chapter or Chapter 4123. of the Revised Code shall be construed    565          

as eliminating or interfering with Chapter 4117. of the Revised    566          

Code or the rights and benefits conferred under that chapter to    567          

public employees or to any bargaining unit.                        568          

      (4)  Provide offices, equipment, supplies, and other         570          

facilities for the bureau.  The administrator also shall provide   572          

suitable office space in the service offices for the district      573          

hearing officers, the staff hearing officers, and commission       574          

employees as requested by the commission.                                       

      (5)  Prepare and submit to the oversight commission          577          

information the administrator considers pertinent or the           578          

oversight commission requires, together with the administrator's   581          

recommendations, in the form of administrative rules, for the      582          

advice and consent of the oversight commission, for                583          

classifications of occupations or industries, for premium rates    584          

and contributions, for the amount to be credited to the surplus    585          

fund, for rules and systems of rating, rate revisions, and merit   586          

rating.  The administrator shall obtain, prepare, and submit any   587          

other information the oversight commission requires for the        589          

prompt and efficient discharge of its duties.                      591          

      (6)  Keep the accounts required by division (A) of section   593          

4123.34 of the Revised Code and all other accounts and records     594          

necessary to the collection, administration, and distribution of   595          

the workers' compensation funds and shall obtain the statistical   596          

and other information required by section 4123.19 of the Revised   597          

                                                          14     

                                                                 
Code.                                                              598          

      (7)  Exercise the investment powers vested in the            600          

administrator by section 4123.44 of the Revised Code in            601          

accordance with the investment objectives, policies, and criteria  603          

established by the oversight commission pursuant to section        604          

4121.12 of the Revised Code.  The administrator shall not engage   605          

in any prohibited investment activity specified by the oversight   606          

commission pursuant to division (F)(6) of section 4121.12 of the   607          

Revised Code.  All business shall be transacted, all funds         608          

invested, all warrants for money drawn and payments made, and all  609          

cash and securities and other property held, in the name of the    610          

bureau, or in the name of its nominee, provided that nominees are               

authorized by the administrator solely for the purpose of          612          

facilitating the transfer of securities, and restricted to the     613          

administrator and designated employees.                            614          

      (8)  Make contracts for and supervise the construction of    617          

any project or improvement or the construction or repair of        618          

buildings under the control of the bureau.                         619          

      (9)  Purchase supplies, materials, equipment, and services;  621          

make contracts for, operate, and superintend the telephone, other  622          

telecommunication, and computer services for the use of the        623          

bureau; and make contracts in connection with office               624          

reproduction, forms management, printing, and other services.      625          

      (10)  Separately from the budget the industrial commission   628          

submits, prepare and submit to the director of budget and          629          

management a budget for each biennium.  The budget submitted       630          

shall include estimates of the costs and necessary expenditures    631          

of the bureau in the discharge of any duty imposed by law as well  632          

as the costs of furnishing office space to the district hearing    633          

officers, staff hearing officers, and commission employees under   634          

division (D) of this section.                                      635          

      (11)  As promptly as possible in the course of efficient     637          

administration, decentralize and relocate such of the personnel    638          

and activities of the bureau as is appropriate to the end that     639          

                                                          15     

                                                                 
the receipt, investigation, determination, and payment of claims   640          

may be undertaken at or near the place of injury or the residence  641          

of the claimant and for that purpose establish regional offices,   642          

in such places as the administrator considers proper, capable of   644          

discharging as many of the functions of the bureau as is           645          

practicable so as to promote prompt and efficient administration   646          

in the processing of claims.  All active and inactive lost-time    647          

claims files shall be held at the service office responsible for   648          

the claim.  A claimant, at the claimant's request, shall be        649          

provided with information by telephone as to the location of the   651          

file pertaining to claim.  The administrator shall ensure that     652          

all service office employees report directly to the director for   653          

their service office.                                                           

      (12)  Provide a written binder on new coverage where the     655          

administrator considers it to be in the best interest of the       656          

risk.  The administrator, or any other person authorized by the    657          

administrator, shall grant the binder upon submission of a         659          

request for coverage by the employer.  A binder is effective for   660          

a period of thirty days from date of issuance and is               661          

nonrenewable.  Payroll reports and premium charges shall coincide  662          

with the effective date of the binder.                             663          

      (13)  Set standards for the reasonable and maximum handling  665          

time of claims payment functions, ensure, by rules, the impartial  666          

and prompt treatment of all claims and employer risk accounts,     667          

and establish a secure, accurate method of time stamping all       668          

incoming mail and documents hand delivered to bureau employees.    669          

      (14)  Ensure that all employees of the bureau follow the     671          

orders and rules of the commission as such orders and rules        672          

relate to the commission's overall adjudicatory policy-making and  673          

management duties under this chapter and Chapters 4123., 4127.,    674          

and 4131. of the Revised Code.                                     675          

      (15)  Manage and operate a data processing system with a     677          

common data base for the use of both the bureau and the            678          

commission and, in consultation with the commission, using         679          

                                                          16     

                                                                 
electronic data processing equipment, shall develop a claims       680          

tracking system that is sufficient to monitor the status of a      681          

claim at any time and that lists appeals that have been filed and  682          

orders or determinations that have been issued pursuant to         683          

section 4123.511 or 4123.512 of the Revised Code, including the    684          

dates of such filings and issuances.                               685          

      (16)  Establish and maintain a medical section within the    687          

bureau.  The medical section shall do all of the following:        688          

      (a)  Assist the administrator in establishing standard       690          

medical fees, approving medical procedures, and determining        691          

eligibility and reasonableness of the compensation payments for    692          

medical, hospital, and nursing services, and in establishing       693          

guidelines for payment policies which recognize usual, customary,  694          

and reasonable methods of payment for covered services;            695          

      (b)  Provide a resource to respond to questions from claims  697          

examiners for employees of the bureau;                             698          

      (c)  Audit fee bill payments;                                700          

      (d)  Implement a program to utilize, to the maximum extent   702          

possible, electronic data processing equipment for storage of      703          

information to facilitate authorizations of compensation payments  704          

for medical, hospital, drug, and nursing services;                 705          

      (e)  Perform other duties assigned to it by the              707          

administrator.                                                     708          

      (17)  Appoint, as the administrator determines necessary,    710          

panels to review and advise the administrator on disputes arising  712          

over a determination that a health care service or supply          713          

provided to a claimant is not covered under this chapter or        714          

Chapter 4123. of the Revised Code or is medically unnecessary.     715          

If an individual health care provider is involved in the dispute,  716          

the panel shall consist of individuals licensed pursuant to the    717          

same section of the Revised Code as such health care provider.     718          

      (18)  Pursuant to section 4123.65 of the Revised Code,       720          

approve applications for the final settlement of claims for        721          

compensation or benefits under this chapter and Chapters 4123.,    722          

                                                          17     

                                                                 
4127., and 4131. of the Revised Code as the administrator          723          

determines appropriate, except in regard to the applications of    725          

self-insuring employers and their employees;                       726          

      (19)  Comply with section 3517.13 of the Revised Code, and   728          

except in regard to contracts entered into pursuant to the         731          

authority contained in section 4121.44 of the Revised Code,                     

comply with the competitive bidding procedures set forth in the    733          

Revised Code for all contracts into which the administrator        734          

enters provided that those contracts fall within the type of       735          

contracts and dollar amounts specified in the Revised Code for     736          

competitive bidding and further provided that those contracts are  737          

not otherwise specifically exempt from the competitive bidding     738          

procedures contained in the Revised Code.                          739          

      (20)  Adopt, with the advice and consent of the oversight    741          

commission, rules for the operation of the bureau.                 743          

      (21)  Prepare and submit to the oversight commission         745          

information the administrator considers pertinent or the           746          

oversight commission requires, together with the administrator's   747          

recommendations, in the form of administrative rules, for the      748          

advice and consent of the oversight commission, for the health     749          

partnership program and the qualified health plan system, as                    

provided in sections 4121.44, 4121.441, and 4121.442 of the        750          

Revised Code.                                                                   

      (C)  The administrator, with the advice and consent of the   752          

senate, shall appoint a chief operating officer who has            754          

significant experience in the field of workers' compensation       755          

insurance or other similar insurance industry experience if the                 

administrator does not possess such experience.  The chief         756          

operating officer shall not commence the chief operating           757          

officer's duties until after the senate consents to the chief      758          

operating officer's appointment.  The chief operating officer      759          

shall serve in the unclassified civil service of the state.        760          

      Sec. 4121.125.  (A)  The workers' compensation oversight     770          

commission may contract with one or more outside actuarial firms   771          

                                                          18     

                                                                 
and other professional persons, as the oversight commission        772          

determines necessary, to assist the oversight commission in        773          

measuring the performance of Ohio's workers' compensation system   774          

and in comparing Ohio's workers' compensation system to other      775          

state and private workers' compensation systems.  The oversight    776          

commission, actuarial firm or firms, and professional persons      777          

shall make such measurements and comparisons using accepted        778          

insurance industry standards, including, but not limited to,       779          

standards promulgated by the National Council on Compensation      781          

Insurance.                                                                      

      (B)  The oversight commission may contract with one or more  783          

outside firms to conduct management and financial audits of the    785          

workers' compensation system, including audits of the reserve      786          

fund belonging to the state insurance fund, and to establish       787          

objective quality management principles and methods by which to    788          

review the performance of the workers' compensation system.                     

      (C)  The oversight commission shall include any actuarial,   790          

managerial, or financial report completed under its authority      792          

pursuant to division (A) or (B) of this section in the next        793          

regularly published report of the oversight commission.            794          

      (D)  The oversight commission shall publish monthly reports  796          

that include, but are not limited to, all of the following:        797          

      (1)  Comparative and competitive data concerning Ohio's      799          

workers' compensation system and the workers' compensation system  800          

of other states on all of the following subjects:                  802          

      (a)  Average length of time to process contested and         805          

uncontested claims;                                                             

      (b)  Length of time to investigate claims that raise         807          

suspicion of fraudulent activity;                                  808          

      (c)  Average indemnity cost of claims;                       810          

      (d)  Average medical costs of claims reported according to   812          

the types of awards and separately reported according to the       813          

types of injuries;                                                 814          

      (e)  Comparisons of Ohio classification manual rates with    817          

                                                          19     

                                                                 
comparable rates in other states, and after the administrator of   818          

workers' compensation classifies occupations and industries and    819          

determines risks of different classes according to the National    820          

Council on Compensation Insurance, comparisons of rates in Ohio    822          

with rates of other states that use National Council on            823          

Compensation Insurance codes;                                                   

      (f)  Effectiveness of rehabilitation, both private and       825          

within the state's workers' compensation system, including the     826          

number of individuals referred, the percentage completing a        827          

rehabilitation program, and the percentage of those finding        828          

employment after successful completion of a rehabilitation         829          

program.                                                                        

      (2)  Data concerning Ohio's workers' compensation system     831          

concerning all of the following:                                   832          

      (a)  Performance of the investments of the bureau of         834          

workers' compensation;                                             835          

      (b)  Effectiveness of the bureau in collecting delinquent    838          

payments that are due from employers pursuant to Chapters 4121.,   839          

4123., 4127., and 4131. of the Revised Code, including a                        

crosscheck with other state agencies to which employers are        841          

required under law to make payments;                                            

      (c)  Effectiveness of the bureau in subrogation claims;      844          

      (d)  Performance measurements of managed care organizations  847          

within the health partnership program and the qualified health     848          

plan system;                                                                    

      (e)  Return-to-work rates, medical outcome measures, and     851          

other measures that the oversight commission or general assembly                

determines;                                                        852          

      (f)  Adequacy of the reserve fund to cover indemnity costs   855          

of the state insurance fund;                                                    

      (g)  The total number of claims filed in the time period     857          

occurring subsequent to publication of the report that             858          

immediately precedes publication of the report for which the       859          

information is being compiled according to the type of claim,      861          

                                                          20     

                                                                 
employer classification, and claim result;                                      

      (h)  The effectiveness of the bureau in identifying and      863          

eliminating fraud in the workers' compensation system and in       864          

recovering workers' compensation resources.                        865          

      The reports published under this division shall include      867          

data from the bureau and the industrial commission regarding       868          

state fund, self-insuring, and public employers.                   869          

      (E)  The administrator and the industrial commission shall   871          

compile information and provide access to records of the bureau    872          

and the industrial commission to the oversight commission to the   873          

extent necessary for fulfillment of all BOTH of the following      874          

requirements:                                                      875          

      (1)  Conduct of the measurements and comparisons described   878          

in division (A) of this section;                                   879          

      (2)  Conduct of the management and financial audits and      881          

establishment of the principles and methods described in division  882          

(B) of this section;                                               883          

      (3)  Publishing of the reports described in divisions (C)    886          

and (D) of this section.                                                        

      (F)(D)  The administrator shall pay the expenses incurred    889          

by the oversight commission to effectively fulfill its duties and  890          

exercise its powers under this section as the administrator pays   891          

other operating expenses of the bureau.                            892          

      Sec. 4123.49.  (A)  IF THE ADMINISTRATOR OF WORKERS'         895          

COMPENSATION DETERMINES PURSUANT TO AN AUDIT OR RECONCILIATION     896          

CONDUCTED UNDER THIS CHAPTER OR CHAPTER 4121. OF THE REVISED CODE  897          

THAT MONEY IS OWED TO THE BUREAU OF WORKERS' COMPENSATION BY AN    898          

EMPLOYER OR EMPLOYEE, OR BY A HEALTH CARE PROVIDER OR MANAGED      899          

CARE ORGANIZATION DOING BUSINESS WITH THE BUREAU, THE BUREAU MAY                

ENTER INTO A PAYMENT AGREEMENT WITH THE INDEBTED EMPLOYER,         900          

EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION.      901          

THE AGREEMENT SHALL INCLUDE ALL OF THE FOLLOWING:                  902          

      (1)  A SCHEDULE OF INSTALLMENT PAYMENTS WHEREBY THE MONEY    904          

OWED TO THE BUREAU IS TO BE PAID IN FULL WITHIN A PERIOD NOT TO    905          

                                                          21     

                                                                 
EXCEED ONE YEAR;                                                                

      (2)  A PROVISION SPECIFYING THAT THE INDEBTED EMPLOYER,      907          

EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION MAY   908          

PAY THE ENTIRE BALANCE OWED AT ANY TIME DURING THE TERM OF THE     909          

AGREEMENT;                                                                      

      (3)  A PROVISION SPECIFYING THAT IF ANY INSTALLMENT IS NOT   911          

PAID IN FULL WITHIN FORTY-FIVE DAYS AFTER IT IS DUE, THE ENTIRE    912          

BALANCE OWED IS IMMEDIATELY DUE AND PAYABLE;                       913          

      (4)  ANY OTHER TERMS OR CONDITIONS DETERMINED BY THE         915          

ADMINISTRATOR.                                                                  

      (B)  THE ADMINISTRATOR MAY REQUIRE AN INDEBTED EMPLOYER,     917          

EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION TO    918          

PAY INTEREST ON THE MONEY OWED TO THE BUREAU.  THE ADMINISTRATOR   919          

MAY DETERMINE THE RATE OF, AND INCLUDE A PROVISION IN A PAYMENT    920          

AGREEMENT REQUIRING THE PAYMENT OF, SUCH INTEREST.  NEITHER THE    921          

OBLIGATION TO PAY INTEREST NOR THE RATE OF INTEREST IS SUBJECT TO  922          

NEGOTIATION BETWEEN THE ADMINISTRATOR AND THE INDEBTED EMPLOYER,                

EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION.      923          

      (C)  IF THE INDEBTED EMPLOYER, EMPLOYEE, HEALTH CARE         925          

PROVIDER, OR MANAGED CARE ORGANIZATION FAILS TO PAY ANY            926          

INSTALLMENT IN FULL WITHIN FORTY-FIVE DAYS AFTER ITS DUE DATE,     927          

THE ADMINISTRATOR SHALL CERTIFY TO THE ATTORNEY GENERAL THE        928          

ENTIRE BALANCE OWED, FOR COLLECTION UNDER SECTION 131.02 OF THE    929          

REVISED CODE.  THE ADMINISTRATOR MAY WITHHOLD FUNDS FROM PAYMENTS               

MADE TO AN INDEBTED EMPLOYER, EMPLOYEE, HEALTH CARE PROVIDER, OR   930          

MANAGED CARE ORGANIZATION UNDER THIS CHAPTER OR CHAPTER 4121. OF   931          

THE REVISED CODE TO SATISFY A JUDGMENT SECURED BY THE ATTORNEY     932          

GENERAL.                                                                        

      (D)  THE ADMINISTRATOR SHALL DEPOSIT ALL MONEY COLLECTED     934          

UNDER THIS SECTION INTO THE STATE INSURANCE FUND.                  935          

      Sec. 4123.511.  (A)  Within seven days after receipt of any  946          

claim under this chapter, the bureau of workers' compensation                   

shall notify the claimant and the employer of the claimant of the  947          

receipt of the claim and of the facts alleged therein.  If the     948          

                                                          22     

                                                                 
bureau receives from a person other than the claimant written or   949          

telecommunicated information indicating that an injury or          950          

occupational disease has occurred or been contracted which may be  951          

compensable under this chapter, the bureau shall notify the        952          

employee and the employer of the information.  If the information  953          

is provided by any method of telecommunication, the person         954          

providing the information shall provide written verification of    955          

the information to the bureau according to division (E) of         956          

section 4123.84 of the Revised Code.  The receipt of the           957          

information in writing, or if by a method of telecommunications,   958          

the written verification, and the notice by the bureau shall be    959          

considered an application for compensation under section 4123.84   960          

or 4123.85 of the Revised Code provided that the conditions of     961          

division (E) of section 4123.84 of the Revised Code apply to       962          

information provided by a method of telecommunication.  Upon       963          

receipt of a claim, the bureau shall advise the claimant of the    964          

claim number assigned and the claimant's right to representation   965          

in the processing of a claim or to elect no representation.  If    966          

the bureau determines that a claim is determined to be a           967          

compensable lost time claim, the bureau shall notify the claimant  968          

and the employer of the availability of rehabilitation services.   969          

No bureau or industrial commission employee shall directly or      970          

indirectly convey any information in derogation of this right.     971          

This section shall in no way abrogate the bureau's responsibility  972          

to aid and assist a claimant in the filing of a claim and to       973          

advise the claimant of the claimant's rights under the law.        974          

      The administrator of workers' compensation shall assign all  976          

claims and investigations to the bureau service office from which  977          

investigation and determination may be made most expeditiously.    978          

      The bureau shall investigate the facts concerning an injury  980          

or occupational disease and ascertain such facts in whatever       981          

manner is most appropriate and may obtain statements of the        982          

employee, employer, attending physician, and witnesses in          983          

whatever manner is most appropriate.                               984          

                                                          23     

                                                                 
      (B)(1)  Except as provided in division (B)(2) of this        986          

section, in claims other than those in which the employer is a     987          

self-insuring employer, if the administrator determines under      988          

division (A) of this section that a claimant is or is not          989          

entitled to an award of compensation or benefits, the              990          

administrator shall issue an order, no sooner than twenty-one      991          

days but no later than twenty-eight days after the sending of the  993          

notice under division (A) of this section, granting or denying     994          

the payment of the compensation or benefits, or both as is         995          

appropriate to the claimant.  Notwithstanding the time limitation  996          

specified in this division for the issuance of an order, if a      997          

medical examination of the claimant is required by statute, the    998          

administrator promptly shall schedule the claimant for that                     

examination and shall issue an order no later than twenty-eight    999          

days after receipt of the report of the examination.  The          1,000        

administrator shall notify the claimant and the employer of the    1,002        

claimant and their respective representatives in writing of the    1,003        

nature of the order and the amounts of compensation and benefit    1,004        

payments involved.  The employer or claimant may appeal the order  1,005        

pursuant to division (C) of this section within fourteen days      1,006        

after the date of the receipt of the order.  The employer and      1,007        

claimant may waive, in writing, their rights to an appeal under    1,008        

this division.                                                                  

      (2)  Notwithstanding the time limitation specified in        1,010        

division (B)(1) of this section for the issuance of an order, if   1,011        

the employer certifies a claim for payment of compensation or      1,012        

benefits, or both, to a claimant, and the administrator has        1,013        

completed the investigation of the claim, the payment of benefits  1,015        

or compensation, or both, as is appropriate, shall commence upon   1,016        

the later of the date of the certification or completion of the    1,017        

investigation and issuance of the order by the administrator,      1,018        

provided that the administrator shall issue the order no later     1,019        

than the time limitation specified in division (B)(1) of this      1,020        

section.                                                           1,021        

                                                          24     

                                                                 
      (3)  If an appeal is made under division (B)(1) or (2) of    1,023        

this section, the administrator shall forward the claim file to    1,024        

the appropriate district hearing officer within seven days of the  1,025        

appeal.  In contested claims other than state fund claims, the     1,026        

administrator shall forward the claim within seven days of the     1,027        

administrator's receipt of the claim to the commission, which      1,029        

shall refer the claim to an appropriate district hearing officer   1,030        

for a hearing in accordance with division (C) of this section.     1,031        

      (C)  If an employer or claimant timely appeals the order of  1,033        

the administrator issued under division (B) of this section or in  1,034        

the case of other contested claims other than state fund claims,   1,035        

the commission shall refer the claim to an appropriate district    1,036        

hearing officer according to rules the commission adopts under     1,037        

section 4121.36 of the Revised Code.  The district hearing         1,038        

officer shall notify the parties and their respective              1,039        

representatives of the time and place of the hearing.              1,040        

      The district hearing officer shall hold a hearing on a       1,042        

disputed issue or claim within forty-five days after the filing    1,044        

of the appeal under this division and issue a decision within      1,045        

seven days after holding the hearing.  The district hearing        1,046        

officer shall notify the parties and their respective                           

representatives in writing of the order.  Any party may appeal an  1,048        

order issued under this division pursuant to division (D) of this  1,049        

section within fourteen days after receipt of the order under      1,050        

this division.                                                     1,051        

      (D)  Upon the timely filing of an appeal of the order of     1,053        

the district hearing officer issued under division (C) of this     1,054        

section, the commission shall refer the claim file to an           1,055        

appropriate staff hearing officer according to its rules adopted   1,056        

under section 4121.36 of the Revised Code.  The staff hearing      1,057        

officer shall hold a hearing within forty-five days after the      1,058        

filing of an appeal under this division and issue a decision       1,059        

within seven days after holding the hearing under this division.   1,062        

The staff hearing officer shall notify the parties and their       1,063        

                                                          25     

                                                                 
respective representatives in writing of his THE STAFF HEARING                  

OFFICER'S order.  Any party may appeal an order issued under this  1,065        

division pursuant to division (E) of this section within fourteen  1,066        

days after receipt of the order under this division.               1,067        

      (E)  Upon the filing of a timely appeal of the order of the  1,069        

staff hearing officer issued under division (D) of this section,   1,070        

the commission or a designated staff hearing officer, on behalf    1,071        

of the commission, shall determine whether the commission will     1,073        

hear the appeal.  If the commission or the designated staff                     

hearing officer decides to hear the appeal, the commission or the  1,075        

designated staff hearing officer shall notify the parties and      1,076        

their respective representatives in writing of the time and place  1,077        

of the hearing.  The commission shall hold the hearing within      1,078        

forty-five days after the filing of the notice of appeal and,      1,079        

within seven days after the conclusion of the hearing, the         1,080        

commission shall issue its order affirming, modifying, or          1,081        

reversing the order issued under division (D) of this section.     1,082        

The commission shall notify the parties and their respective       1,083        

representatives in writing of the order.  If the commission or     1,084        

the designated staff hearing officer determines not to hear the    1,085        

appeal, within fourteen days after the filing of the notice of     1,086        

appeal, the commission or the designated staff hearing officer     1,087        

shall issue an order to that effect and notify the parties and                  

their respective representatives in writing of that order.         1,088        

      Except as otherwise provided in this chapter and Chapters    1,090        

4121., 4127., and 4131. of the Revised Code, any party may appeal  1,091        

an order issued under this division to the court pursuant to       1,092        

section 4123.512 of the Revised Code within sixty days after       1,093        

receipt of the order, subject to the limitations contained in      1,094        

that section.                                                      1,095        

      (F)  Every notice of an appeal from an order issued under    1,097        

divisions (B), (C), (D), and (E) of this section shall state the   1,098        

names of the claimant and employer, the number of the claim, the   1,099        

date of the decision appealed from, and the fact that the          1,100        

                                                          26     

                                                                 
appellant appeals therefrom.                                       1,101        

      (G)  All of the following apply to the proceedings under     1,103        

divisions (C), (D), and (E) of this section:                       1,104        

      (1)  The parties shall proceed promptly and without          1,106        

continuances except for good cause;                                1,107        

      (2)  The parties, in good faith, shall engage in the free    1,109        

exchange of information relevant to the claim prior to the         1,110        

conduct of a hearing according to the rules the commission adopts  1,111        

under section 4121.36 of the Revised Code;                         1,112        

      (3)  The administrator is a party and may appear and         1,114        

participate at all administrative proceedings on behalf of the     1,115        

state insurance fund.  However, in cases in which the employer is  1,116        

represented, the administrator shall neither present arguments     1,117        

nor introduce testimony that is cumulative to that presented or    1,118        

introduced by the employer or the employer's representative.  The  1,119        

administrator may file an appeal under this section on behalf of                

the state insurance fund; however, except in cases arising under   1,120        

section 4123.343 of the Revised Code, the administrator only may   1,121        

appeal questions of law or issues of fraud when the employer       1,122        

appears in person or by representative.                                         

      (H)  Except as provided in division (J) of this section,     1,124        

payments of compensation to a claimant or on behalf of a claimant  1,125        

as a result of any order issued under this chapter shall commence  1,126        

upon the earlier of the following:                                 1,127        

      (1)  Fourteen days after the date the administrator issues   1,129        

an order under division (B) of this section, unless that order is  1,130        

appealed;                                                          1,131        

      (2)  The date when the employer has waived the right to      1,133        

appeal a decision issued under division (B) of this section;       1,134        

      (3)  If no appeal of an order has been filed under this      1,136        

section or to a court under section 4123.512 of the Revised Code,  1,137        

the expiration of the time limitations for the filing of an        1,138        

appeal of an order;                                                1,139        

      (4)  The date of receipt by the employer of an order of a    1,141        

                                                          27     

                                                                 
district hearing officer, a staff hearing officer, or the          1,144        

industrial commission issued under division (C), (D), or (E) of    1,145        

this section.                                                      1,146        

      (I)  No medical benefits payable under this chapter or       1,148        

Chapter 4121., 4127., or 4131. of the Revised Code are payable     1,149        

until the earlier of the following:                                1,150        

      (1)  The date of the issuance of the staff hearing           1,152        

officer's order under division (D) of this section;                1,153        

      (2)  The date of the final administrative or judicial        1,155        

determination.                                                     1,156        

      (J)  Upon the final administrative or judicial               1,158        

determination UNDER THIS SECTION OR SECTION 4123.512 OF THE        1,159        

REVISED CODE OF AN APPEAL OF AN ORDER TO PAY COMPENSATION, if a    1,160        

claimant is found to have received compensation PURSUANT to A      1,161        

PRIOR ORDER which the claimant was not entitled IS REVERSED UPON   1,162        

SUBSEQUENT APPEAL, the claimant's employer, if a self-insuring     1,163        

employer, or the bureau, shall withhold from any amount to which   1,165        

the claimant becomes entitled pursuant to any claim, past,         1,166        

present, or future, under Chapter 4121., 4123., 4127., or 4131.    1,167        

of the Revised Code, the amount OF PREVIOUSLY PAID COMPENSATION    1,168        

to which the claimant was WHICH, DUE TO REVERSAL UPON APPEAL, THE  1,169        

CLAIMANT IS not entitled, pursuant to the following criteria:      1,170        

      (1)  No withholding for the first twelve weeks of temporary  1,172        

total disability compensation pursuant to section 4123.56 of the   1,173        

Revised Code shall be made;                                        1,174        

      (2)  Forty per cent of all awards of compensation paid       1,176        

pursuant to sections 4123.56 and 4123.57 of the Revised Code,      1,177        

until the amount overpaid is refunded;                             1,178        

      (3)  Twenty-five per cent of any compensation paid pursuant  1,180        

to section 4123.58 of the Revised Code until the amount overpaid   1,181        

is refunded;                                                       1,182        

      (4)  If, pursuant to an appeal under section 4123.512 of     1,184        

the Revised Code, the court of appeals or the supreme court        1,185        

reverses the allowance of the claim, then no amount of any         1,186        

                                                          28     

                                                                 
compensation will be withheld.                                     1,187        

      THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS, AS            1,189        

APPROPRIATE, ARE SUBJECT TO THE REPAYMENT SCHEDULE OF THIS         1,190        

DIVISION ONLY WITH RESPECT TO AN ORDER TO PAY COMPENSATION THAT    1,191        

WAS PROPERLY PAID UNDER A PREVIOUS ORDER, BUT WHICH IS                          

SUBSEQUENTLY REVERSED UPON AN ADMINISTRATIVE OR JUDICIAL APPEAL.   1,192        

THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS ARE NOT SUBJECT TO,  1,193        

BUT MAY UTILIZE, THE REPAYMENT SCHEDULE OF THIS DIVISION, OR ANY   1,194        

OTHER LAWFUL MEANS, TO COLLECT PAYMENT OF COMPENSATION MADE TO A   1,195        

PERSON WHO WAS NOT ENTITLED TO THE COMPENSATION DUE TO FRAUD OR    1,196        

HUMAN ERROR.                                                                    

      (K)  If a staff hearing officer or the commission fails to   1,198        

issue a decision or the commission fails to refuse to hear an      1,199        

appeal within the time periods required by this section, payments  1,200        

to a claimant shall cease until the staff hearing officer or       1,201        

commission issues a decision or hears the appeal, unless the       1,202        

failure was due to the fault or neglect of the employer or the     1,203        

employer agrees that the payments should continue for a longer     1,204        

period of time.                                                    1,205        

      (L)  Except as provided in section 4123.522 of the Revised   1,207        

Code, no appeal is timely filed under this section unless the      1,208        

appeal is filed with the time limits set forth in this section.    1,209        

      (M)  No person who is not an employee of the bureau or       1,211        

commission or who is not by law given access to the contents of a  1,212        

claims file shall have a file in the person's possession.          1,213        

      Section 2.  That existing sections 121.03, 2317.45,          1,215        

4121.12, 4121.121, 4121.125, and 4123.511 of the Revised Code are  1,217        

hereby repealed.                                                                

      Section 3.  The Administrator of Workers' Compensation       1,219        

shall submit a series of reports to the Workers' Compensation      1,220        

Oversight Commission and the General Assembly semiannually during  1,221        

the 1997-1999 biennium, beginning on or before October 1, 1997,    1,222        

containing information relative to all of the following:           1,224        

      (A)  The premium cost per worker, which reports the average  1,226        

                                                          29     

                                                                 
annual cost a state fund employer pays to provide workers'         1,227        

compensation coverage for its employees.  The premium cost per     1,228        

worker is calculated by adding together an employer's total        1,229        

amounts of premiums and assessments paid during a calendar year    1,230        

and dividing that sum by the employer's average number of          1,231        

workers.                                                           1,232        

      (B)  The claims cost per worker, which reports the average   1,234        

annual benefit cost paid for each worker who is employed by a      1,235        

state fund employer during the preceding twelve months.  The       1,236        

claims cost per worker is calculated by dividing an employer's     1,237        

total claim expenses paid during the preceding twelve months by    1,238        

the employer's average number of workers.                          1,239        

      (C)  The administrative cost per claim, which reports the    1,241        

average annual administrative expense a state fund employer pays   1,242        

to process a claim.  The administrative cost per claim is          1,243        

calculated by dividing an employer's total amount of               1,244        

administrative expenses incurred during the preceding twelve       1,245        

months by the total number of claims the employer processed.       1,246        

      (D)  The direct loss ratio, which measures the relationship  1,248        

between an employer's revenues and workers' compensation benefits  1,250        

paid to an injured worker during the preceding twelve months;      1,251        

      (E)  The rate of return generated by investments of the      1,253        

Bureau of Workers' Compensation;                                   1,254        

      (F)  The customer service index, which accounts for various  1,256        

statistical measures reflecting the Bureau's customer service      1,257        

levels;                                                            1,258        

      (G)  The Health Partnership Program performance index,       1,260        

which measures the effectiveness of managed care organizations     1,261        

working for the Bureau and reflects the quality of care, customer  1,262        

satisfaction, and cost of care provided by the managed care        1,263        

organizations;                                                     1,264        

      (H)  The rate of injury in the state per 1,000 workers;      1,266        

      (I)  The average number of days the Bureau takes to          1,268        

adjudicate an injured worker's medical bill fee;                   1,269        

                                                          30     

                                                                 
      (J)  The return-to-work rate of state fund employers'        1,271        

injured workers who do not receive workers' compensation benefits  1,272        

for at least ninety days following their injury, which reports     1,273        

the number of injured workers who returned to work as a            1,274        

percentage of total injuries;                                      1,275        

      (K)  The average number of days it takes for an employer or  1,277        

injured worker to report an injury to the Bureau, which is         1,278        

calculated by taking the average number of days between the date   1,279        

of injury and the date the claim was filed with the Bureau;        1,280        

      (L)  The percentage of indemnity claims adjudicated by the   1,282        

Bureau within fourteen days of the injury.                         1,283        

      Section 4.  All items in this section are hereby             1,285        

appropriated out of any moneys in the state treasury to the        1,286        

credit of the designated fund.  For all appropriations made in     1,287        

this act, those in the first column are for fiscal year 1998, and  1,288        

those in the second column are for fiscal year 1999.                            

              BWC  BUREAU OF WORKERS' COMPENSATION                 1,289        

FND ALI     ALI TITLE                    FY 1998        FY 1999    1,292        

Workers' Compensation Fund Group                                   1,294        

023 855-401 William Green Lease                                    1,297        

            Payments to OBA       $   14,665,000 $   15,465,000    1,299        

4Y6 855-611 J.L. Camera Center                                     1,301        

            Rent                  $    1,592,800 $    1,681,997    1,303        

4Y6 855-612 J.L. Camera Center                                     1,305        

            Operating             $    7,381,302 $    7,345,026    1,307        

023 855-407 Claims, Risk &                                         1,309        

            Medical Management    $  129,400,786 $  123,784,337    1,311        

023 855-408 Fraud Prevention      $    8,200,705 $    8,111,383    1,315        

023 855-409 Administrative                                         1,317        

            Services              $  111,629,196 $  114,654,976    1,319        

023 855-410 Attorney General                                       1,321        

            Payments              $    3,017,914 $    3,227,422    1,323        

825 855-605 DWRF                  $      635,629 $      651,961    1,327        

822 855-606 Coal Workers' Fund    $       73,684 $       75,545    1,331        

                                                          31     

                                                                 
823 855-608 Marine Industry       $       42,536 $       43,599    1,335        

826 855-609 Safety & Hygiene      $   17,981,552 $   17,991,764    1,339        

TOTAL WCF Workers' Compensation                                    1,340        

   Fund Group                     $  294,621,104 $  293,033,010    1,343        

TOTAL ALL BUDGET FUND GROUPS      $  294,621,104 $  293,033,010    1,346        

      Workers' Compensation Fraud Unit                             1,348        

      The Workers' Compensation Section Fund (Fund 195) shall      1,350        

receive payments from the Bureau of Workers' Compensation at the   1,351        

beginning of each quarter of each fiscal year to fund expenses of  1,352        

the Workers' Compensation Fraud Unit of the Attorney General's     1,353        

Office.  Of the foregoing appropriation item 855-410, Attorney     1,354        

General Payments, $659,151 in fiscal year 1998 and $676,002 in                  

fiscal year 1999 shall be used to provide such payments.           1,355        

      William Green Lease Payments                                 1,357        

      The foregoing appropriation item 855-401, William Green      1,359        

Lease Payments to OBA, shall be used for lease payments to the     1,360        

Ohio Building Authority, and these appropriations shall be used    1,361        

to meet all payments at the times they are required to be made     1,362        

during the period from July 1, 1997, to June 30, 1999, by the      1,363        

Bureau of Workers' Compensation to the Ohio Building Authority                  

pursuant to leases and agreements made under Chapter 152. of the   1,364        

Revised Code and Section 6 of Am. Sub. H.B. 743 of the 118th       1,365        

General Assembly.  Of the amounts received in Fund 023,            1,366        

appropriation line item 855-401, up to $30,130,000 shall be                     

restricted for lease rental payments to the Ohio Building          1,367        

Authority.  If it is determined that additional appropriations     1,368        

are necessary for such purpose, such amounts are hereby            1,369        

appropriated.                                                                   

      Notwithstanding any other provision of law to the contrary,  1,371        

all tenants of the William Green Building not funded by the        1,372        

Workers' Compensation Fund (Fund 023) shall pay their fair share   1,373        

of the costs of lease payments to the Workers' Compensation Fund   1,374        

(Fund 023) by intrastate transfer voucher.                                      

      Camera Center                                                1,376        

                                                          32     

                                                                 
      The Camera Center Fund (Fund 4Y6) created in division (F)    1,378        

of section 4121.62 of the Revised Code shall receive revenues      1,379        

raised by the fees Camera Center charges for its services and      1,380        

rent paid by tenants of the Center's facilities.  The foregoing    1,381        

appropriation item 855-611, J.L. Camera Center Rent, shall be                   

used to pay rent, including building operating expenses, of the    1,382        

J. Leonard Camera Rehabilitation Center in Columbus.  The          1,383        

foregoing appropriation item 855-612, J.L. Camera Center           1,384        

Operating, shall be used for all other expenses for the Center.    1,385        

      The Bureau of Workers' Compensation shall not consider       1,387        

appropriations made to the Camera Center Fund (Fund 4Y6) when      1,388        

establishing administrative cost rates.                                         

      Balances                                                     1,390        

      Notwithstanding any provision of law to the contrary, the    1,392        

Director of Budget and Management shall make any transfers of      1,393        

cash balances between funds made necessary by the creation of new  1,394        

funds, or the consolidation of funds as authorized by the General  1,395        

Assembly.  Within the first five days after the effective date of  1,396        

this section, the administering agency head shall certify to the   1,397        

Director an estimate of the amount of the cash balance to be                    

transferred to the receiving fund.  The Director may transfer the  1,398        

estimated amount when needed to make payments.  Within thirty      1,399        

days after the effective date of this section, the administering   1,400        

agency head shall certify the final amount to the Director.  The   1,401        

Director shall transfer the difference between any estimated                    

amount previously transferred and such certified final amount.     1,402        

      To implement such funding changes as described above         1,404        

pertaining to prior year encumbrance balances and commensurate     1,405        

appropriation authority, in fiscal year 1998 the Director of       1,406        

Budget and Management may cancel encumbrances outstanding on June  1,407        

30, 1997, and reestablish such prior year encumbrances or parts    1,408        

of encumbrances as needed in fiscal year 1998 in the appropriate                

fund or appropriation line item as authorized in this act for the  1,409        

same purpose and to the same vendor.  As determined by the         1,410        

                                                          33     

                                                                 
Director, the appropriation authority necessary to reestablish     1,411        

such prior year encumbrances in fiscal year 1998 in a different    1,412        

fund or appropriation line item within an agency or between                     

agencies is hereby authorized.  The Director shall reduce each     1,413        

prior year's appropriation authority by the amount of the          1,414        

encumbrances canceled in their respective funds and appropriation  1,415        

line items.                                                                     

      Vocational Rehabilitation                                    1,417        

      The Bureau of Workers' Compensation and the Rehabilitation   1,419        

Services Commission shall enter into an interagency agreement for  1,420        

the provision of vocational rehabilitation services and staff to   1,421        

mutually eligible clients.  The Bureau shall provide $519,608 in   1,422        

fiscal year 1998 and $534,157 in fiscal year 1999 from the State   1,423        

Insurance Fund to fund vocational rehabilitation services and      1,424        

staff in accordance with the interagency agreement.                1,425        

      Fund Balance                                                 1,427        

      Any unencumbered cash balance in excess of $45,000,000 in    1,429        

the Workers' Compensation Fund (Fund 023) on the thirtieth day of  1,430        

June of each fiscal year shall be used to reduce the               1,431        

administrative cost rate charged to employers to cover             1,432        

appropriations for Bureau of Workers' Compensation and Industrial  1,433        

Commission operations.                                             1,434        

      Section 5.  Accounting                                       1,436        

      Within the limits set forth in this act, the Director of     1,439        

Budget and Management shall establish accounts indicating the      1,440        

source and amount of funds for each appropriation made in this                  

act, and shall determine the form and manner in which              1,441        

appropriation accounts shall be maintained.                        1,442        

      The appropriations made in this act are subject to all       1,444        

provisions of the main operating appropriations act of the 122nd   1,445        

General Assembly that are generally applicable to such             1,446        

appropriations.                                                                 

      Section 6.  Reissuance of Voided Warrants                    1,448        

      In order to provide funds for the reissuance of voided       1,450        

                                                          34     

                                                                 
warrants pursuant to section 117.47 of the Revised Code, there is  1,451        

hereby appropriated, out of moneys in the state treasury from the  1,452        

fund credited as provided in section 117.47 of the Revised Code,   1,453        

that amount sufficient to pay such warrants when approved by the   1,454        

Office of Budget and Management.                                   1,455        

      Section 7.  Judgments Against State                          1,457        

      Any appropriations contained in this act, except those to    1,459        

be applied to or used for payment of guarantees by or on behalf    1,460        

of the state or for debt service on bonds, notes, or certificates  1,461        

of participation, may be used pursuant to section 2743.15,         1,462        

2743.19, or 2743.191 of the Revised Code for the purpose of        1,463        

satisfying judgments, settlements, or administrative awards        1,464        

ordered or approved by the Court of Claims in connection with      1,465        

civil actions against the state.                                   1,466        

      Section 8.  Reappropriation of Unexpended Balances           1,468        

      Notwithstanding section 131.33 of the Revised Code,          1,470        

unexpended balances of appropriations and reappropriations         1,471        

against which encumbrances have been lawfully incurred by a state  1,472        

agency are, at the close of fiscal year 1997, to the extent of     1,473        

such encumbrances, hereby reappropriated from the funds from       1,474        

which they were originally appropriated and reappropriated and,    1,475        

except for encumbrances for items of special order manufacture     1,476        

not available on term contract or open market, made available for  1,477        

the purpose of discharging such encumbrances for a period of five  1,478        

months from the end of the fiscal year.  Unexpended balances of    1,479        

appropriations and reappropriations against which encumbrances     1,480        

for items of special order manufacture not available on term       1,481        

contract or in the open market have been lawfully incurred are,    1,482        

at the close of the fiscal year, to the extent of such             1,483        

encumbrances, hereby reappropriated and made available for the                  

purpose of discharging such encumbrances for a period of five      1,484        

months from the end of the fiscal year or, if the Director of      1,485        

Budget and Management approves, for a period of not more than      1,486        

twelve months from the end of the fiscal year.                     1,487        

                                                          35     

                                                                 
      Any items for which unexpended balances are reappropriated   1,489        

beyond a five-month period from the end of the fiscal year shall   1,490        

be reported to the Controlling Board by the Director of Budget     1,491        

and Management.  The report on each such item shall include the    1,492        

item, the cost of the item, the vendor involved, and the delivery  1,493        

date.  Such reports to the board shall be updated on a quarterly   1,494        

basis while the encumbrance remains open.                          1,495        

      After any such period, reappropriations made for the         1,497        

purpose of discharging encumbrances for operating expenses,        1,498        

defined as those encumbrances incurred for personal services,      1,499        

maintenance, and equipment, are canceled.  Reappropriations for    1,500        

encumbrances other than operating expenses or items of special     1,501        

manufacture not available on term contract or in the open market   1,502        

may be extended by obtaining the approval of the Director of       1,503        

Budget and Management.                                                          

      Section 9.  If any item of law that constitutes the whole    1,505        

or part of a codified or uncodified section of law contained in    1,506        

this act, or if any application of any item of law that            1,507        

constitutes the whole or part of a codified or uncodified section  1,509        

of law contained in this act, is held invalid, the invalidity      1,510        

does not affect other items of law or applications of items of     1,511        

law that can be given effect without the invalid item of law or    1,512        

application.  To this end, the items of law of which the codified  1,513        

and uncodified sections contained in this act are composed, and    1,514        

their applications, are independent and severable.                              

      Section 10.  Except as otherwise specifically provided in    1,516        

this act, the codified and uncodified sections of law contained    1,517        

in this act, and the items of law of which the codified and        1,518        

uncodified sections of law contained in this act are composed,     1,519        

are not subject to the referendum.  Therefore, under Ohio          1,520        

Constitution, Article II, Section 1d and section 1.471 of the      1,521        

Revised Code, the codified and uncodified sections of law          1,522        

contained in this act, and the items of law of which the codified  1,524        

and uncodified sections of law contained in this act are           1,525        

                                                          36     

                                                                 
composed, except as otherwise specifically provided in this act,   1,526        

go into immediate effect when this act becomes law.                             

      Section 11.  Sections 121.03, 2317.45, 4121.12, 4121.121,    1,528        

4121.125, 4123.49, and 4123.511 of the Revised Code, as amended    1,529        

or enacted by this act, and Section 12 of this act; and the items  1,530        

of law of which such sections, as amended or enacted by this act,  1,531        

are composed, are subject to the referendum.  Therefore, under     1,532        

Ohio Constitution, Article II, Section 1c and section 1.471 of     1,533        

the Revised Code, such sections as amended or enacted by this      1,534        

act, and the items of law of which such sections as amended or     1,535        

enacted by this act are composed, take effect on the ninety-first  1,537        

day after this act is filed with the Secretary of State.  If,      1,538        

however, a referendum petition is filed against any such section   1,539        

as amended or enacted by this act, or against any item of law of   1,540        

which any such section as amended or enacted by this act is        1,541        

composed, the section as amended or enacted, or item of law,       1,542        

unless rejected at the referendum, takes effect at the earliest    1,543        

time permitted by law.                                                          

      Section 12.  Section 121.03 of the Revised Code is           1,546        

presented in this act as a composite of the section as amended by  1,547        

both Am. Sub. H.B. 7 and Am. Sub. S.B. 162 of the 121st General    1,548        

Assembly, with the new language of neither of the acts shown in    1,550        

capital letters.  This is in recognition of the principle stated   1,551        

in division (B) of section 1.52 of the Revised Code that such      1,552        

amendments are to be harmonized where not substantively            1,553        

irreconcilable and constitutes a legislative finding that such is  1,554        

the resulting version in effect prior to the effective date of     1,555        

this act.