As Reported by the Senate Insurance,                 1            

                  Commerce and Labor Committee                     2            

122nd General Assembly                                             5            

   Regular Session                             Sub. H. B. No. 363  6            

      1997-1998                                                    7            


  REPRESENTATIVES THOMPSON-JOHNSON-AMSTUTZ-O'BRIEN-CORE-CATES-     8            

                  VESPER-CORBIN-GARCIA-BRADING                     9            


                                                                   11           

                           A   B I L L                                          

             To amend sections 2317.45, 4121.12, 4121.121,         13           

                4121.125, 4123.34, 4123.511, 4123.512, and         14           

                4123.57 of the Revised Code and to amend Sections               

                3 and 6 of Am. Sub. S.B. 45 of the 122nd General   15           

                Assembly to make appropriations for the Bureau of  17           

                Workers' Compensation for the biennium beginning                

                July 1, 1997, and ending June 30, 1999, and to     19           

                provide authorization and conditions for the                    

                operation of Bureau of Workers' Compensation       20           

                programs.                                          21           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        22           

      Section 1.  That sections 2317.45, 4121.12, 4121.121,        24           

4121.125, 4123.34, 4123.511, 4123.512, and 4123.57 of the Revised  25           

Code be amended to read as follows:                                26           

      Sec. 2317.45.  (A)  As used in this section:                 35           

      (1)  "Collateral benefits" means benefits that are paid by   37           

any source, including workers' compensation benefits, to or on     39           

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

person or property, regardless of whether there is an obligation   40           

to pay back the money or other benefits, in whole or in part,      41           

upon recovery in a tort action.  "Collateral benefits" does not    42           

include life insurance proceeds.                                                

      (2)  "Tort action" means a civil action for damages for      45           

injury, death, or loss to person or property.  "Tort action"       46           

                                                          2      

                                                                 
includes a product liability claim but does not include a civil    47           

action for damages for a breach of contract or another agreement   48           

between persons.                                                                

      (3)  "Trier of fact" means the jury or, in a nonjury         50           

action, the court.                                                              

      (B)  In determining the amount of the compensatory damages   53           

that are recoverable by the plaintiff in a tort action, the trier  55           

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

collateral benefits that have been paid, or that the source of     56           

the benefits has acknowledged are payable, from insurance other    57           

than insurance for which the plaintiff, spouse of the plaintiff,   58           

or parent of the plaintiff if the plaintiff is a minor, has paid   59           

a premium, insurance that is subject to a right of subrogation,    60           

WORKERS' COMPENSATION BENEFITS THAT ARE SUBJECT TO A RIGHT OF      61           

SUBROGATION, or insurance that has any other obligation of         63           

repayment, including, but not limited to, evidence of the amount   64           

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

for the collateral benefits.                                       65           

      (C)  This section does not apply as follows:                 67           

      (1)  In tort actions against the state in the court of       69           

claims.  Division (D) of section 2743.02 or division (B)(2) of     71           

section 3345.40 of the Revised Code applies to collateral          72           

recoveries or sources of plaintiffs in those tort actions.                      

      (2)  In tort actions against political subdivisions of this  74           

state that are commenced under or are subject to Chapter 2744. of  75           

the Revised Code.  Division (B) of section 2744.05 of the Revised  77           

Code applies to collateral sources of plaintiffs in those tort                  

actions.                                                           78           

      (D)  This section shall be considered to be purely remedial  80           

in operation and shall be applied in a remedial manner in any      81           

civil action commenced on or after the effective date of the       82           

amendment to this section JANUARY 27, 1997, in which this section  83           

is relevant, regardless of when the cause of action accrued and    84           

notwithstanding any other section of the Revised Code or prior     85           

                                                          3      

                                                                 
rule of law of this state, but shall not be construed to apply to  86           

any civil action pending prior to the effective date of the        87           

amendment to this section JANUARY 27, 1997.                        88           

      Sec. 4121.12.  (A)  There is hereby created the workers'     98           

compensation oversight commission consisting of nine members, of   99           

which members the governor shall appoint five with the advice and  100          

consent of the senate.  Of the five members the governor           102          

appoints, two shall be individuals who, on account of their        104          

previous vocation, employment, or affiliations, can be classed as  106          

representative of employees, at least one of whom is                            

representative of employees who are members of an employee         108          

organization; two shall be individuals who, on account of their    110          

previous vocation, employment, or affiliations, can be classed as  112          

representative of employers, one of whom represents self-insuring  113          

employers and one of whom has experience as an employer in         114          

compliance with section 4123.35 of the Revised Code other than a   116          

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

shall represent employers whose employees are not members of an    117          

employee organization; and one shall represent the public and      118          

also be an individual who, on account of the individual's          119          

previous vocation, employment, or affiliations, cannot be classed  120          

as either predominantly representative of employees or of          121          

employers.  The governor shall select the chairperson of the       122          

commission who shall serve as chairperson at the pleasure of the   123          

governor.  No more than three members appointed by the governor    126          

shall belong to or be affiliated with the same political party.    127          

      Each of these five members shall have at least three years'  129          

experience in the field of insurance, finance, workers'            130          

compensation, law, accounting, actuarial, personnel, investments,  131          

or data processing, or in the management of an organization whose  132          

size is commensurate with that of the bureau of workers'           133          

compensation.  At least one of these five members shall be an      134          

attorney licensed under Chapter 4705. of the Revised Code to       135          

practice law in this state.                                        136          

                                                          4      

                                                                 
      (B)  Of the initial appointments made to the commission,     139          

the governor shall appoint one member who represents employees to  140          

a term ending one year after September 1, 1995, one member who     141          

represents employers to a term ending two years after the          143          

effective date of this section, the member who represents the      144          

public to a term ending three years after September 1, 1995, one   147          

member who represents employees to a term ending four years after  148          

September 1, 1995, and one member who represents employers to a    150          

term ending five years after September 1, 1995.  Thereafter,       152          

terms of office shall be for five years, with each term ending on  153          

the same day of the same month as did the term that it succeeds.   155          

Each member shall hold office from the date of his appointment     156          

until the end of the term for which the member was appointed.      157          

      The governor shall not appoint any person to more than two   159          

full terms of office on the commission.  This restriction does     160          

not prevent the governor from appointing a person to fill a        161          

vacancy caused by the death, resignation, or removal of a          162          

commission member and also appointing that person twice to full    163          

terms on the commission, or from appointing a person previously    164          

appointed to fill less than a full term twice to full terms on     165          

the commission.  Any member appointed to fill a vacancy occurring  166          

prior to the expiration date of the term for which the member's    168          

predecessor was appointed shall hold office as a member for the                 

remainder of that term.  A member shall continue in office         169          

subsequent to the expiration date of the member's term until a     171          

successor takes office or until a period of sixty days has         172          

elapsed, whichever occurs first.                                   173          

      (C)  In making appointments to the commission, the governor  176          

shall select the members from the list of names submitted by the   179          

workers' compensation oversight commission nominating committee    180          

pursuant to this division.  Within fourteen days after the         181          

governor calls the initial meeting of the nominating committee                  

pursuant to division (C) of section 4121.123 of the Revised Code,  182          

the nominating committee shall submit to the governor, for the     185          

                                                          5      

                                                                 
initial appointments, a list containing four separate names for    187          

each of the members on the commission.  Within fourteen days       189          

after the submission of the list, the governor shall appoint       190          

individuals from the list.                                                      

      For the appointment of the member who is representative of   192          

employees who are members of an employee organization, both for    193          

initial appointments and for the filling of vacancies, the list    194          

of four names submitted by the nominating committee shall be       195          

comprised of four individuals who are members of the executive     196          

committee of the largest statewide labor federation.                            

      Thereafter, within sixty days after a vacancy occurring as   200          

a result of the expiration of a term and within thirty days after  201          

other vacancies occurring on the commission, the nominating        202          

committee shall submit a list containing four names for each       204          

vacancy.  Within fourteen days after the submission of the list,   206          

the governor shall appoint individuals from the list.  With        208          

respect to the filling of vacancies, the nominating committee      209          

shall provide the governor with a list of four individuals who     210          

are, in the judgment of the nominating committee, the most fully   211          

qualified to accede to membership on the commission.  The          212          

nominating committee shall not include the name of an individual   213          

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

that individual by the governor would result in more than three    214          

members of the commission belonging to or being affiliated with    215          

the same political party.  The committee shall include on the      216          

list for the filling of vacancies only the names of attorneys      217          

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

requirement of division (A) of section 4121.12 of the Revised      218          

Code, the vacancy must be filled by an attorney.                   219          

      In order for the name of an individual to be submitted to    221          

the governor under this division, the nominating committee shall   223          

approve the individual by an affirmative vote of a majority of     225          

its members.                                                                    

      (D)  The remaining four members of the commission shall be   228          

                                                          6      

                                                                 
the chairperson and ranking minority member of the standing        229          

committees of the house of representatives and of the senate to                 

which legislation concerning this chapter and Chapters 4123.,      230          

4127., and 4131. of the Revised Code normally are referred, or a   232          

designee of the chairperson or ranking minority member, provided   233          

that the designee is a member of the standing committee.           234          

Legislative members shall serve during the session of the general  235          

assembly to which they are elected and for as long as they are     236          

members of the general assembly.  Legislative members shall serve  237          

in an advisory capacity to the commission and shall have no        239          

voting rights on matters coming before the commission.             241          

Membership on the commission by legislative members shall not be   242          

deemed as holding a public office.                                 243          

      (E)  All members of the commission shall receive their       246          

reasonable and necessary expenses pursuant to section 126.31 of    247          

the Revised Code while engaged in the performance of their duties  249          

as members.  Legislative members also shall receive fifty dollars  250          

per meeting that they attend.  Members appointed by the governor   251          

also shall receive an annual salary as follows:                                 

      (a)(1)  On and before August 31, 1998, not to exceed six     254          

thousand dollars payable at the rate of five hundred dollars per   255          

month.  A member shall receive the monthly five hundred dollar     256          

salary only if the member has attended at least one meeting of     258          

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

than the monthly five hundred dollar salary regardless of the      260          

number of meetings held by the commission during a month or the    261          

number of meetings in excess of one within a month that the        262          

member attends.                                                                 

      (b)(2)  After August 31, 1998, not to exceed eighteen        264          

thousand dollars payable at the rate of fifteen hundred dollars    265          

per month.  A member shall receive the monthly fifteen hundred     266          

dollar salary only if the member has attended at least one         267          

meeting of the commission during that month.  A member may         268          

receive no more than the monthly fifteen hundred dollar salary                  

                                                          7      

                                                                 
regardless of the number of meetings held by the commission        269          

during the month or the number of meetings in excess of one        270          

within a month that the member attends.                            271          

      The administrator of workers' compensation shall provide     273          

professional and clerical assistance to the commission, as the     274          

commission considers appropriate.                                  275          

      (F)  The commission shall:                                   277          

      (1)  Review progress of the bureau in meeting its cost and   280          

quality objectives and in complying with this chapter and          281          

Chapters 4123., 4127., and 4131. of the Revised Code;              282          

      (2)  Issue an annual report on the cost and quality          284          

objectives of the bureau to the president of the senate, the       286          

speaker of the house of representatives, and the governor;         287          

      (3)  Review all independent financial audits of the bureau.  289          

The administrator shall provide access to records of the bureau    290          

to facilitate the review required under this division.             291          

      (4)  Study issues as requested by the administrator or the   293          

governor;                                                                       

      (5)  Contract with an independent actuarial firm to assist   295          

the commission in making recommendations to the administrator      296          

regarding premium rates;                                                        

      (6)  Establish objectives, policies, and criteria for the    299          

administration of the investment program that include asset        301          

allocation targets and ranges, risk factors, asset class                        

benchmarks, time horizons, total return objectives, and            302          

performance evaluation guidelines, and monitor the                 304          

administrator's progress in implementing the objectives,           305          

policies, and criteria on a quarterly basis.  The commission                    

shall publish the objectives, policies, and criteria no less than  307          

annually and shall make copies available to interested parties.    308          

The commission shall prohibit, on a prospective basis, specific    310          

investment activity it finds to be contrary to its investment                   

objectives, policies, and criteria.                                311          

      The investment policy in existence on the effective date of  313          

                                                          8      

                                                                 
this amendment shall continue until the commission approves        314          

objectives, policies, and criteria for the administration of the   315          

investment program pursuant to this section.                       316          

      (7)  Advise and consent on all of the following:             318          

      (a)  Administrative rules the administrator submits to it    321          

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

Code for the classification of occupations or industries, for      323          

premium rates and contributions, for the amount to be credited to  324          

the surplus fund, for rules and systems of rating, rate            325          

revisions, and merit rating;                                                    

      (b)  The overall policy of the bureau of workers'            328          

compensation as set by the administrator;                                       

      (c)  The duties and authority conferred upon the             330          

administrator pursuant to section 4121.37 of the Revised Code;     331          

      (d)  Rules the administrator adopts for the health           333          

partnership program and the qualified health plan system, as       334          

provided in sections 4121.44, 4121.441, and 4121.442 of the        335          

Revised Code.                                                                   

      (8)  Perform all duties required under section 4121.125 of   337          

the Revised Code;                                                  338          

      (9)  After August 31, 1998 2000, appoint an administrator    340          

who meets the qualifications required under section 4121.121 of    342          

the Revised Code and fix the salary of the administrator, the      344          

amount of which the commission shall base upon the experience of   346          

the administrator and the responsibilities and duties of the                    

administrator pursuant to this chapter and Chapters 4123., 4127.,  347          

and 4131. of the Revised Code.                                     348          

      (G)  The commission may enter into an employment contract    350          

with an administrator it appoints, provided that the contract      351          

does not exceed two years in length.                               353          

      (H)  "NOTHING IN THE REVISED CODE SHALL PROHIBIT ANY MEMBER  356          

OF THE COMMISSION FROM OFFERING COMMENTS OR ASKING QUESTIONS       357          

REGARDING ANY ASPECT OF THIS CHAPTER OR CHAPTERS 4123., 4127.,     359          

AND 4131. OF THE REVISED CODE, PROPOSED AMENDMENTS TO THOSE        362          

                                                          9      

                                                                 
CHAPTERS, OR ANY RULES PROPOSED OR ADOPTED PURSUANT TO THOSE       363          

CHAPTERS, INCLUDING COMMENTS OR QUESTIONS REGARDING THE IMPACT     364          

UPON THE STATE INSURANCE FUND OR THE ADMINISTRATION OF THAT FUND   365          

CAUSED BY THOSE CHAPTERS, PROPOSED AMENDMENTS TO THOSE CHAPTERS,   366          

OR RULES PROPOSED OR ADOPTED PURSUANT TO THOSE CHAPTERS.  THIS     367          

DIVISION SHALL BE LIBERALLY CONSTRUED IN FAVOR OF DISCLOSURE AND   368          

OPTIMUM FACILITATION OF ACCESS TO INFORMATION.                     369          

      (I)  As used in this section, "employee organization" means  371          

any labor or bona fide organization in which employees             372          

participate and which exists for the purpose, in whole or in       374          

part, of dealing with employers concerning grievances, labor       375          

disputes, wages, hours, terms and other conditions of employment.  376          

      Sec. 4121.121.  (A)  There is hereby created the bureau of   385          

workers' compensation, which shall be administered by the          386          

administrator of workers' compensation.  A person appointed to     387          

the position of administrator shall possess significant            388          

management experience in effectively managing an organization or   389          

organizations of substantial size and complexity.  Before                       

September 1, 1998, the THE governor shall appoint the              390          

administrator as provided in section 121.03 of the Revised Code,   392          

and the administrator shall serve at the pleasure of the           394          

governor.  The governor shall fix the administrator's salary on    396          

the basis of the administrator's experience and the                             

administrator's responsibilities and duties under this chapter     398          

and Chapters 4123., 4127., and 4131. of the Revised Code.  The     399          

governor shall not appoint to the position of administator any     400          

person who has, or whose spouse has, given a contribution to the   401          

campaign committee of the governor in an amount greater than one   402          

thousand dollars during the two-year period immediately preceding  403          

the date of the appointment of the administrator.  After August    405          

31, 1998 2000, the workers' compensation oversight commission      406          

shall appoint the administrator as provided in division (F)(9) of  407          

section 4121.12 of the Revised Code, and the administrator shall   408          

serve at the pleasure of the oversight commission.  The oversight  410          

                                                          10     

                                                                 
commission shall fix the administrator's salary on the basis of    411          

the administrator's experience and the administrator's             412          

responsibilities and duties under this chapter and Chapters        413          

4123., 4127., and 4131. of the Revised Code.                       414          

      The administrator shall hold no other public office and      416          

shall devote full time to the duties of administrator.  Before     418          

entering upon the duties of the office, the administrator shall    419          

take an oath of office as required by sections 3.22 and 3.23 of    420          

the Revised Code, and shall file in the office of the secretary    421          

of state, a bond signed by the administrator and by surety         422          

approved by the governor, for the sum of fifty thousand dollars    424          

payable to the state, conditioned upon the faithful performance    425          

of the administrator's duties.                                                  

      (B)  The administrator is responsible for the management of  428          

the bureau of workers' compensation and for the discharge of all   429          

administrative duties imposed upon the administrator in this       430          

chapter and Chapters 4123., 4127., and 4131. of the Revised Code,  432          

and in the discharge thereof shall do all of the following:        433          

      (1)  Establish the overall administrative policy of the      436          

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

4127., and 4131. of the Revised Code, and perform all acts and     437          

exercise all authorities and powers, discretionary and otherwise   439          

that are required of or vested in the bureau or any of its         440          

employees in this chapter and Chapters 4123., 4127., and 4131. of  441          

the Revised Code, except the acts and the exercise of authority    442          

and power that is required of and vested in the oversight          443          

commission or the industrial commission pursuant to those          444          

chapters.  The treasurer of state shall honor all warrants signed  445          

by the administrator, or by one or more of the administrator's     446          

employees, authorized by the administrator in writing, or bearing  448          

the facsimile signature of the administrator or such employee      449          

under sections 4123.42 and 4123.44 of the Revised Code.            450          

      (2)  Employ, direct, and supervise all employees required    452          

in connection with the performance of the duties assigned to the   453          

                                                          11     

                                                                 
bureau by this chapter and Chapters 4123., 4127., and 4131. of     454          

the Revised Code, and may establish job classification plans and   455          

compensation for all employees of the bureau provided that this    456          

grant of authority shall not be construed as affecting any         457          

employee for whom the state employment relations board has         458          

established an appropriate bargaining unit under section 4117.06   459          

of the Revised Code.  All positions of employment in the bureau    460          

are in the classified civil service except those employees the     461          

administrator may appoint to serve at the administrator's          462          

pleasure in the unclassified civil service pursuant to section     463          

124.11 of the Revised Code.  The administrator shall fix the       464          

salaries of employees the administrator appoints to serve at the   466          

administrator's pleasure, including the chief operating officer,   467          

staff physicians, and other senior management personnel of the                  

bureau AND SHALL ESTABLISH THE COMPENSATION OF STAFF ATTORNEYS OF  468          

THE BUREAU'S LEGAL SECTION AND THEIR IMMEDIATE SUPERVISORS, AND    469          

TAKE WHATEVER STEPS ARE NECESSARY TO PROVIDE ADEQUATE              470          

COMPENSATION FOR OTHER STAFF ATTORNEYS.                            471          

      THE ADMINISTRATOR MAY APPOINT A PERSON HOLDING A CERTIFIED   473          

POSITION IN THE CLASSIFIED SERVICE TO ANY STATE POSITION IN THE    474          

UNCLASSIFIED SERVICE OF THE BUREAU OF WORKERS' COMPENSATION.  A    475          

PERSON SO APPOINTED SHALL RETAIN THE RIGHT TO RESUME THE POSITION  477          

AND STATUS HELD BY THE PERSON IN THE CLASSIFIED SERVICE                         

IMMEDIATELY PRIOR TO THE PERSON'S APPOINTMENT IN THE UNCLASSIFIED  479          

SERVICE.  IF THE POSITION THE PERSON PREVIOUSLY HELD HAS BEEN      480          

FILLED OR PLACED IN THE UNCLASSIFIED SERVICE, OR IS OTHERWISE      481          

UNAVAILABLE, THE PERSON SHALL BE APPOINTED TO A POSITION IN THE    482          

CLASSIFIED SERVICE WITHIN THE BUREAU THAT THE DEPARTMENT OF        483          

ADMINISTRATIVE SERVICES CERTIFIES IS COMPARABLE IN COMPENSATION                 

TO THE POSITION THE PERSON PREVIOUSLY HELD.  REINSTATEMENT TO A    485          

POSITION IN THE CLASSIFIED SERVICE SHALL BE TO A POSITION          486          

SUBSTANTIALLY EQUAL TO THAT HELD PREVIOUSLY, AS CERTIFIED BY THE   487          

DEPARTMENT OF ADMINISTRATIVE SERVICES.  SERVICE IN THE POSITION    488          

IN THE UNCLASSIFIED SERVICE SHALL BE COUNTED AS SERVICE IN THE     490          

                                                          12     

                                                                 
POSITION IN THE CLASSIFIED SERVICE HELD BY THE PERSON IMMEDIATELY  491          

PRIOR TO THE PERSON'S APPOINTMENT IN THE UNCLASSIFIED SERVICE.     492          

WHEN A PERSON IS REINSTATED TO A POSITION IN THE CLASSIFIED        493          

SERVICE AS PROVIDED IN THIS SECTION, THE PERSON IS ENTITLED TO     494          

ALL RIGHTS, STATUS, AND BENEFITS ACCRUING TO THE POSITION DURING   495          

THE PERSON'S TIME OF SERVICE IN THE POSITION IN THE UNCLASSIFIED   496          

SERVICE.                                                           497          

      (3)  Reorganize the work of the bureau, its sections,        499          

departments, and offices to the extent necessary to achieve the    500          

most efficient performance of its functions and to that end may    501          

establish, change, or abolish positions and assign and reassign    502          

duties and responsibilities of every employee of the bureau.  All  503          

persons employed by the commission in positions that, after        505          

November 3, 1989, are supervised and directed by the               506          

administrator under this section are transferred to the bureau in  507          

their respective classifications but subject to reassignment and   508          

reclassification of position and compensation as the               509          

administrator determines to be in the interest of efficient        510          

administration.  The civil service status of any person employed   511          

by the commission is not affected by this section.  Personnel      512          

employed by the bureau or the commission who are subject to        513          

Chapter 4117. of the Revised Code shall retain all of their        514          

rights and benefits conferred pursuant to that chapter as it       515          

presently exists or is hereafter amended and nothing in this       516          

chapter or Chapter 4123. of the Revised Code shall be construed    517          

as eliminating or interfering with Chapter 4117. of the Revised    518          

Code or the rights and benefits conferred under that chapter to    519          

public employees or to any bargaining unit.                        520          

      (4)  Provide offices, equipment, supplies, and other         522          

facilities for the bureau.  The administrator also shall provide   524          

suitable office space in the service offices for the district      525          

hearing officers, the staff hearing officers, and commission       526          

employees as requested by the commission.                                       

      (5)  Prepare and submit to the oversight commission          529          

                                                          13     

                                                                 
information the administrator considers pertinent or the           530          

oversight commission requires, together with the administrator's   533          

recommendations, in the form of administrative rules, for the      534          

advice and consent of the oversight commission, for                535          

classifications of occupations or industries, for premium rates    536          

and contributions, for the amount to be credited to the surplus    537          

fund, for rules and systems of rating, rate revisions, and merit   538          

rating.  The administrator shall obtain, prepare, and submit any   539          

other information the oversight commission requires for the        541          

prompt and efficient discharge of its duties.                      543          

      (6)  Keep the accounts required by division (A) of section   545          

4123.34 of the Revised Code and all other accounts and records     546          

necessary to the collection, administration, and distribution of   547          

the workers' compensation funds and shall obtain the statistical   548          

and other information required by section 4123.19 of the Revised   549          

Code.                                                              550          

      (7)  Exercise the investment powers vested in the            552          

administrator by section 4123.44 of the Revised Code in            553          

accordance with the investment objectives, policies, and criteria  555          

established by the oversight commission pursuant to section        556          

4121.12 of the Revised Code.  The administrator shall not engage   557          

in any prohibited investment activity specified by the oversight   558          

commission pursuant to division (F)(6) of section 4121.12 of the   559          

Revised Code.  All business shall be transacted, all funds         560          

invested, all warrants for money drawn and payments made, and all  561          

cash and securities and other property held, in the name of the    562          

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

authorized by the administrator solely for the purpose of          564          

facilitating the transfer of securities, and restricted to the     565          

administrator and designated employees.                            566          

      (8)  Make contracts for and supervise the construction of    569          

any project or improvement or the construction or repair of        570          

buildings under the control of the bureau.                         571          

      (9)  Purchase supplies, materials, equipment, and services;  573          

                                                          14     

                                                                 
make contracts for, operate, and superintend the telephone, other  574          

telecommunication, and computer services for the use of the        575          

bureau; and make contracts in connection with office               576          

reproduction, forms management, printing, and other services.      577          

      (10)  Separately from the budget the industrial commission   580          

submits, prepare and submit to the director of budget and          581          

management a budget for each biennium.  The budget submitted       582          

shall include estimates of the costs and necessary expenditures    583          

of the bureau in the discharge of any duty imposed by law as well  584          

as the costs of furnishing office space to the district hearing    585          

officers, staff hearing officers, and commission employees under   586          

division (D) of this section.                                      587          

      (11)  As promptly as possible in the course of efficient     589          

administration, decentralize and relocate such of the personnel    590          

and activities of the bureau as is appropriate to the end that     591          

the receipt, investigation, determination, and payment of claims   592          

may be undertaken at or near the place of injury or the residence  593          

of the claimant and for that purpose establish regional offices,   594          

in such places as the administrator considers proper, capable of   596          

discharging as many of the functions of the bureau as is           597          

practicable so as to promote prompt and efficient administration   598          

in the processing of claims.  All active and inactive lost-time    599          

claims files shall be held at the service office responsible for   600          

the claim.  A claimant, at the claimant's request, shall be        601          

provided with information by telephone as to the location of the   603          

file pertaining to claim.  The administrator shall ensure that     604          

all service office employees report directly to the director for   605          

their service office.                                                           

      (12)  Provide a written binder on new coverage where the     607          

administrator considers it to be in the best interest of the       608          

risk.  The administrator, or any other person authorized by the    609          

administrator, shall grant the binder upon submission of a         611          

request for coverage by the employer.  A binder is effective for   612          

a period of thirty days from date of issuance and is               613          

                                                          15     

                                                                 
nonrenewable.  Payroll reports and premium charges shall coincide  614          

with the effective date of the binder.                             615          

      (13)  Set standards for the reasonable and maximum handling  617          

time of claims payment functions, ensure, by rules, the impartial  618          

and prompt treatment of all claims and employer risk accounts,     619          

and establish a secure, accurate method of time stamping all       620          

incoming mail and documents hand delivered to bureau employees.    621          

      (14)  Ensure that all employees of the bureau follow the     623          

orders and rules of the commission as such orders and rules        624          

relate to the commission's overall adjudicatory policy-making and  625          

management duties under this chapter and Chapters 4123., 4127.,    626          

and 4131. of the Revised Code.                                     627          

      (15)  Manage and operate a data processing system with a     629          

common data base for the use of both the bureau and the            630          

commission and, in consultation with the commission, using         631          

electronic data processing equipment, shall develop a claims       632          

tracking system that is sufficient to monitor the status of a      633          

claim at any time and that lists appeals that have been filed and  634          

orders or determinations that have been issued pursuant to         635          

section 4123.511 or 4123.512 of the Revised Code, including the    636          

dates of such filings and issuances.                               637          

      (16)  Establish and maintain a medical section within the    639          

bureau.  The medical section shall do all of the following:        640          

      (a)  Assist the administrator in establishing standard       642          

medical fees, approving medical procedures, and determining        643          

eligibility and reasonableness of the compensation payments for    644          

medical, hospital, and nursing services, and in establishing       645          

guidelines for payment policies which recognize usual, customary,  646          

and reasonable methods of payment for covered services;            647          

      (b)  Provide a resource to respond to questions from claims  649          

examiners for employees of the bureau;                             650          

      (c)  Audit fee bill payments;                                652          

      (d)  Implement a program to utilize, to the maximum extent   654          

possible, electronic data processing equipment for storage of      655          

                                                          16     

                                                                 
information to facilitate authorizations of compensation payments  656          

for medical, hospital, drug, and nursing services;                 657          

      (e)  Perform other duties assigned to it by the              659          

administrator.                                                     660          

      (17)  Appoint, as the administrator determines necessary,    662          

panels to review and advise the administrator on disputes arising  664          

over a determination that a health care service or supply          665          

provided to a claimant is not covered under this chapter or        666          

Chapter 4123. of the Revised Code or is medically unnecessary.     667          

If an individual health care provider is involved in the dispute,  668          

the panel shall consist of individuals licensed pursuant to the    669          

same section of the Revised Code as such health care provider.     670          

      (18)  Pursuant to section 4123.65 of the Revised Code,       672          

approve applications for the final settlement of claims for        673          

compensation or benefits under this chapter and Chapters 4123.,    674          

4127., and 4131. of the Revised Code as the administrator          675          

determines appropriate, except in regard to the applications of    677          

self-insuring employers and their employees;.                      678          

      (19)  Comply with section 3517.13 of the Revised Code, and   680          

except in regard to contracts entered into pursuant to the         683          

authority contained in section 4121.44 of the Revised Code,                     

comply with the competitive bidding procedures set forth in the    685          

Revised Code for all contracts into which the administrator        686          

enters provided that those contracts fall within the type of       687          

contracts and dollar amounts specified in the Revised Code for     688          

competitive bidding and further provided that those contracts are  689          

not otherwise specifically exempt from the competitive bidding     690          

procedures contained in the Revised Code.                          691          

      (20)  Adopt, with the advice and consent of the oversight    693          

commission, rules for the operation of the bureau.  No rule        694          

adopted by the administrator shall be construed as barring the     695          

participation of a person who is not admitted to the practice of   696          

law as a representative of a party for the purposes of any matter  697          

arising under this chapter and Chapters 4123., 4127., and 4131.    698          

                                                          17     

                                                                 
of the Revised Code, provided that the representative of the                    

party complies with rules of the administrator.                    699          

      (21)  Prepare and submit to the oversight commission         701          

information the administrator considers pertinent or the           702          

oversight commission requires, together with the administrator's   703          

recommendations, in the form of administrative rules, for the      704          

advice and consent of the oversight commission, for the health     705          

partnership program and the qualified health plan system, as                    

provided in sections 4121.44, 4121.441, and 4121.442 of the        706          

Revised Code.                                                                   

      (C)  The administrator, with the advice and consent of the   708          

senate, shall appoint a chief operating officer who has            710          

significant experience in the field of workers' compensation       711          

insurance or other similar insurance industry experience if the                 

administrator does not possess such experience.  The chief         712          

operating officer shall not commence the chief operating           713          

officer's duties until after the senate consents to the chief      714          

operating officer's appointment.  The chief operating officer      715          

shall serve in the unclassified civil service of the state.        716          

      Sec. 4121.125.  (A)  The workers' compensation oversight     726          

commission may contract with one or more outside actuarial firms   727          

and other professional persons, as the oversight commission        728          

determines necessary, to assist the oversight commission in        729          

measuring the performance of Ohio's workers' compensation system   730          

and in comparing Ohio's workers' compensation system to other      731          

state and private workers' compensation systems.  The oversight    732          

commission, actuarial firm or firms, and professional persons      733          

shall make such measurements and comparisons using accepted        734          

insurance industry standards, including, but not limited to,       735          

standards promulgated by the National Council on Compensation      737          

Insurance.                                                                      

      (B)  The oversight commission may contract with one or more  739          

outside firms to conduct management and financial audits of the    741          

workers' compensation system, including audits of the reserve      742          

                                                          18     

                                                                 
fund belonging to the state insurance fund, and to establish       743          

objective quality management principles and methods by which to    744          

review the performance of the workers' compensation system.                     

      (C)  The oversight commission shall include any actuarial,   746          

managerial, or financial report completed under its authority      748          

pursuant to division (A) or (B) of this section in the next        749          

regularly published report of the oversight commission.            750          

      (D)  The oversight commission shall publish monthly reports  752          

that include, but are not limited to, all of the following:        753          

      (1)  Comparative and competitive data concerning Ohio's      755          

workers' compensation system and the workers' compensation system  756          

of other states on all of the following subjects:                  758          

      (a)  Average length of time to process contested and         761          

uncontested claims;                                                             

      (b)  Length of time to investigate claims that raise         763          

suspicion of fraudulent activity;                                  764          

      (c)  Average indemnity cost of claims;                       766          

      (d)  Average medical costs of claims reported according to   768          

the types of awards and separately reported according to the       769          

types of injuries;                                                 770          

      (e)  Comparisons of Ohio classification manual rates with    773          

comparable rates in other states, and after the administrator of   774          

workers' compensation classifies occupations and industries and    775          

determines risks of different classes according to the National    776          

Council on Compensation Insurance, comparisons of rates in Ohio    778          

with rates of other states that use National Council on            779          

Compensation Insurance codes;                                                   

      (f)  Effectiveness of rehabilitation, both private and       781          

within the state's workers' compensation system, including the     782          

number of individuals referred, the percentage completing a        783          

rehabilitation program, and the percentage of those finding        784          

employment after successful completion of a rehabilitation         785          

program.                                                                        

      (2)  Data concerning Ohio's workers' compensation system     787          

                                                          19     

                                                                 
concerning all of the following:                                   788          

      (a)  Performance of the investments of the bureau of         790          

workers' compensation;                                             791          

      (b)  Effectiveness of the bureau in collecting delinquent    794          

payments that are due from employers pursuant to Chapters 4121.,   795          

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

crosscheck with other state agencies to which employers are        797          

required under law to make payments;                                            

      (c)  Effectiveness of the bureau in subrogation claims;      800          

      (d)  Performance measurements of managed care organizations  803          

within the health partnership program and the qualified health     804          

plan system;                                                                    

      (e)  Return-to-work rates, medical outcome measures, and     807          

other measures that the oversight commission or general assembly                

determines;                                                        808          

      (f)  Adequacy of the reserve fund to cover indemnity costs   811          

of the state insurance fund;                                                    

      (g)  The total number of claims filed in the time period     813          

occurring subsequent to publication of the report that             814          

immediately precedes publication of the report for which the       815          

information is being compiled according to the type of claim,      817          

employer classification, and claim result;                                      

      (h)  The effectiveness of the bureau in identifying and      819          

eliminating fraud in the workers' compensation system and in       820          

recovering workers' compensation resources.                        821          

      The reports published under this division shall include      823          

data from the bureau and the industrial commission regarding       824          

state fund, self-insuring, and public employers.                   825          

      (E)  The administrator and the industrial commission shall   827          

compile information and provide access to records of the bureau    828          

and the industrial commission to the oversight commission to the   829          

extent necessary for fulfillment of all BOTH of the following      830          

requirements:                                                      831          

      (1)  Conduct of the measurements and comparisons described   834          

                                                          20     

                                                                 
in division (A) of this section;                                   835          

      (2)  Conduct of the management and financial audits and      837          

establishment of the principles and methods described in division  838          

(B) of this section;                                               839          

      (3)  Publishing of the reports described in divisions (C)    842          

and (D) of this section.                                                        

      (F)(D)  The administrator shall pay the expenses incurred    845          

by the oversight commission to effectively fulfill its duties and  846          

exercise its powers under this section as the administrator pays   847          

other operating expenses of the bureau.                            848          

      Sec. 4123.34.  The administrator of workers' compensation,   857          

in the exercise of the powers and discretion conferred upon him    858          

THE ADMINISTRATOR in section 4123.29 of the Revised Code, shall    859          

fix and maintain, with the advice and consent of the workers'      860          

compensation oversight commission, for each class of occupation    861          

or industry, the lowest possible rates of premium consistent with  862          

the maintenance of a solvent state insurance fund and the          863          

creation and maintenance of a reasonable surplus, after the        864          

payment of legitimate claims for injury, occupational disease,     865          

and death that he THE ADMINISTRATOR authorizes to be paid from     866          

the state insurance fund for the benefit of injured, diseased,     867          

and the dependents of killed employees.  In establishing rates,    868          

the administrator shall take into account the necessity of         869          

ensuring sufficient money is set aside in the premium payment      870          

security fund to cover any defaults in premium obligations.  The   871          

administrator shall observe all of the following requirements in   872          

fixing the rates of premium for the risks of occupations or        873          

industries:                                                                     

      (A)  He THE ADMINISTRATOR shall keep an accurate account of  875          

the money paid in premiums by each of the several classes of       877          

occupations or industries, and the losses on account of injuries,  878          

occupational disease, and death of employees thereof, and also     879          

keep an account of the money received from each individual         880          

employer and the amount of losses incurred against the state       881          

                                                          21     

                                                                 
insurance fund on account of injuries, occupational disease, and   882          

death of the employees of the employer.                            883          

      (B)  Ten per cent of the money paid into the state           885          

insurance fund shall be set aside for the creation of a surplus    886          

until the surplus amounts to the sum of one hundred thousand       887          

dollars, after which time, whenever necessary in the judgment of   888          

the administrator to guarantee a solvent state insurance fund, a   889          

sum not exceeding five per cent of all the money paid into the     890          

state insurance fund shall be credited to the surplus fund.  A     891          

revision of basic rates shall be made annually on the first day    892          

of July.                                                           893          

      Notwithstanding any provision of the law to the contrary,    895          

one hundred eighty days after the effective date on which          896          

self-insuring employers first may elect under division (D) of      897          

section 4121.66 of the Revised Code to directly pay for            898          

rehabilitation expenses, the administrator shall calculate the     899          

deficit, if any, in the portion of surplus fund that is used for   900          

reimbursement to self-insuring employers for all expenses other    901          

than handicapped reimbursement under section 4123.343 of the       902          

Revised Code.  Without regard to whether a self-insuring employer  903          

makes the election under division (D) of section 4121.66 of the    904          

Revised Code, the administrator shall assess all self-insuring     905          

employers the amount he THE ADMINISTRATOR determines necessary to  907          

reduce the deficit over a period not to exceed five years from     908          

the effective date of this amendment OCTOBER 20, 1993.  After the  910          

initial assessment, the administrator, from time to time, may      911          

determine whether the surplus fund has such a deficit and may      913          

assess all self-insuring employers who participated in the         914          

portion of the surplus fund during the accrual of the deficit and  915          

who during that time period have not made the election under       916          

division (D) of section 4121.66 of the Revised Code the amount he  917          

THE ADMINISTRATOR determines necessary to reduce the deficit.      918          

      Revisions of basic rates shall be in accordance with the     920          

oldest four of the last five calendar years of the combined        921          

                                                          22     

                                                                 
accident and occupational disease experience of the administrator  922          

in the administration of this chapter, as shown by the accounts    923          

kept as provided in this section, EXCLUDING THE EXPERIENCE OF      924          

EMPLOYERS THAT ARE NO LONGER ACTIVE IF THE ADMINISTRATOR           925          

DETERMINES THAT THE INCLUSION OF THOSE EMPLOYERS WOULD HAVE A      926          

SIGNIFICANT NEGATIVE IMPACT ON THE REMAINDER OF THE EMPLOYERS IN   927          

A PARTICULAR MANUAL CLASSIFICATION; and the administrator shall    928          

adopt rules, with the advice and consent of the oversight          930          

commission, governing rate revisions, the object of which shall    931          

be to make an equitable distribution of losses among the several   932          

classes of occupation or industry, which rules shall be general    933          

in their application.                                                           

      (C)  The administrator may apply that form of rating system  935          

which he THE ADMINISTRATOR finds is best calculated to merit rate  937          

or individually rate the risk more equitably, predicated upon the               

basis of its individual industrial accident and occupational       938          

disease experience, and may encourage and stimulate accident       939          

prevention. The administrator shall develop fixed and equitable    940          

rules controlling the rating system, which rules shall conserve    941          

to each risk the basic principles of workers' compensation         942          

insurance.                                                                      

      (D)  The administrator, from the money paid into the state   944          

insurance fund, shall set aside into an account of the state       945          

insurance fund titled a premium payment security fund sufficient   946          

money to pay for any premiums due from an employer and             947          

uncollected that are in excess of the employer's premium security  950          

deposit.                                                                        

      The fund shall be in the custody of the treasurer of state.  952          

All investment earnings of the fund shall be deposited in the      953          

fund.  Disbursements from the fund shall be made by the bureau of  954          

workers' compensation upon order of the administrator to the       955          

state insurance fund.  The use of the moneys held by the premium   956          

payment security fund is restricted to reimbursement to the state  957          

insurance fund of premiums due and uncollected in excess of an     958          

                                                          23     

                                                                 
employer's premium security deposit.  The moneys constituting the  959          

premium payment security fund shall be maintained without regard   960          

to or reliance upon any other fund.  This section does not         961          

prevent the deposit or investment of the premium payment security  962          

fund with any other fund created by this chapter, but the premium  963          

payment security fund is separate and distinct for every other     964          

purpose and a strict accounting thereof shall be maintained.       965          

      (E)  The administrator may grant discounts on premium rates  967          

for employers who meet either of the following requirements:       968          

      (1)  Have not incurred a compensable injury for one year or  970          

more and who maintain an employee safety committee or similar      971          

organization or make periodic safety inspections of the            972          

workplace.                                                         973          

      (2)  Successfully complete a loss prevention program         975          

prescribed by the superintendent of the division of safety and     976          

hygiene and conducted by the division or by any other person       977          

approved by the superintendent.                                    978          

      (F)(1)  In determining the premium rates for the             980          

construction industry the administrator shall calculate the        981          

employers' premiums based upon the actual remuneration             982          

construction industry employees receive from construction          983          

industry employers, provided that the amount of remuneration the   984          

administrator uses in calculating the premiums shall not exceed    985          

an average weekly wage equal to one hundred fifty per cent of the  986          

statewide average weekly wage as defined in division (C) of        988          

section 4123.62 of the Revised Code.                               989          

      (2)  Division (F)(1) of this section shall not be construed  991          

as affecting the manner in which benefits to a claimant are        992          

awarded under this chapter.                                        993          

      (3)  As used in division (F) of this section, "construction  995          

industry" includes any activity performed in connection with the   996          

erection, alteration, repair, replacement, renovation,             997          

installation, or demolition of any building, structure, highway,   998          

or bridge.                                                         999          

                                                          24     

                                                                 
      Sec. 4123.511.  (A)  Within seven days after receipt of any  1,010        

claim under this chapter, the bureau of workers' compensation                   

shall notify the claimant and the employer of the claimant of the  1,011        

receipt of the claim and of the facts alleged therein.  If the     1,012        

bureau receives from a person other than the claimant written or   1,013        

telecommunicated information indicating that an injury has         1,014        

occurred or an occupational disease that may be compensable under  1,016        

this chapter has been diagnosed by a licensed physician, the                    

bureau shall notify the employee and the employer of the           1,018        

information.  If the information is provided by any method of      1,019        

telecommunication, the person providing the information shall      1,020        

provide written verification of the information to the bureau      1,021        

according to division (E) of section 4123.84 of the Revised Code.  1,022        

The receipt of the information in writing, or if by a method of    1,023        

telecommunications, the written verification, and the notice by    1,024        

the bureau shall be considered an application for compensation     1,025        

under section 4123.84 or 4123.85 of the Revised Code provided      1,026        

that the conditions of division (E) of section 4123.84 of the      1,027        

Revised Code apply to information provided by a method of          1,028        

telecommunication.  Upon receipt of a claim, the bureau shall      1,029        

advise the claimant of the claim number assigned and the           1,030        

claimant's right to representation in the processing of a claim    1,031        

or to elect no representation.  If the bureau determines that a    1,032        

claim is determined to be a compensable lost time claim, the       1,033        

bureau shall notify the claimant and the employer of the           1,034        

availability of rehabilitation services. No bureau or industrial   1,035        

commission employee shall directly or indirectly convey any        1,036        

information in derogation of this right. This section shall in no  1,037        

way abrogate the bureau's responsibility to aid and assist a       1,038        

claimant in the filing of a claim and to advise the claimant of    1,039        

the claimant's rights under the law.                                            

      The administrator of workers' compensation shall assign all  1,041        

claims and investigations to the bureau service office from which  1,042        

investigation and determination may be made most expeditiously.    1,043        

                                                          25     

                                                                 
      The bureau shall investigate the facts concerning an injury  1,045        

or occupational disease and ascertain such facts in whatever       1,046        

manner is most appropriate and may obtain statements of the        1,047        

employee, employer, attending physician, and witnesses in          1,048        

whatever manner is most appropriate.                               1,049        

      (B)(1)  Except as provided in division (B)(2) of this        1,051        

section, in claims other than those in which the employer is a     1,052        

self-insuring employer, if the administrator determines under      1,053        

division (A) of this section that a claimant is or is not          1,054        

entitled to an award of compensation or benefits, the              1,055        

administrator shall issue an order, no later than twenty-eight     1,058        

days after the sending of the notice under division (A) of this    1,059        

section, granting or denying the payment of the compensation or    1,060        

benefits, or both as is appropriate to the claimant.               1,061        

Notwithstanding the time limitation specified in this division                  

for the issuance of an order, if a medical examination of the      1,062        

claimant is required by statute, the administrator promptly shall  1,063        

schedule the claimant for that examination and shall issue an      1,064        

order no later than twenty-eight days after receipt of the report  1,065        

of the examination.  The administrator shall notify the claimant   1,066        

and the employer of the claimant and their respective              1,067        

representatives in writing of the nature of the order and the      1,068        

amounts of compensation and benefit payments involved.  The        1,069        

employer or claimant may appeal the order pursuant to division     1,070        

(C) of this section within fourteen days after the date of the     1,071        

receipt of the order.  The employer and claimant may waive, in     1,072        

writing, their rights to an appeal under this division.            1,073        

      (2)  Notwithstanding the time limitation specified in        1,075        

division (B)(1) of this section for the issuance of an order, if   1,076        

the employer certifies a claim for payment of compensation or      1,077        

benefits, or both, to a claimant, and the administrator has        1,078        

completed the investigation of the claim, the payment of benefits  1,080        

or compensation, or both, as is appropriate, shall commence upon   1,081        

the later of the date of the certification or completion of the    1,082        

                                                          26     

                                                                 
investigation and issuance of the order by the administrator,      1,083        

provided that the administrator shall issue the order no later     1,084        

than the time limitation specified in division (B)(1) of this      1,085        

section.                                                           1,086        

      (3)  If an appeal is made under division (B) of this         1,089        

section, the administrator shall forward the claim file to the     1,090        

appropriate district hearing officer within seven days of the                   

appeal.  In contested claims other than state fund claims, the     1,091        

administrator shall forward the claim within seven days of the     1,092        

administrator's receipt of the claim to the commission, which      1,094        

shall refer the claim to an appropriate district hearing officer   1,095        

for a hearing in accordance with division (C) of this section.     1,096        

      (C)  If an employer or claimant timely appeals the order of  1,098        

the administrator issued under division (B) of this section or in  1,099        

the case of other contested claims other than state fund claims,   1,100        

the commission shall refer the claim to an appropriate district    1,101        

hearing officer according to rules the commission adopts under     1,102        

section 4121.36 of the Revised Code.  The district hearing         1,103        

officer shall notify the parties and their respective              1,104        

representatives of the time and place of the hearing.              1,105        

      The district hearing officer shall hold a hearing on a       1,107        

disputed issue or claim within forty-five days after the filing    1,109        

of the appeal under this division and issue a decision within      1,110        

seven days after holding the hearing.  The district hearing        1,111        

officer shall notify the parties and their respective                           

representatives in writing of the order.  Any party may appeal an  1,113        

order issued under this division pursuant to division (D) of this  1,114        

section within fourteen days after receipt of the order under      1,115        

this division.                                                     1,116        

      (D)  Upon the timely filing of an appeal of the order of     1,118        

the district hearing officer issued under division (C) of this     1,119        

section, the commission shall refer the claim file to an           1,120        

appropriate staff hearing officer according to its rules adopted   1,121        

under section 4121.36 of the Revised Code.  The staff hearing      1,122        

                                                          27     

                                                                 
officer shall hold a hearing within forty-five days after the      1,123        

filing of an appeal under this division and issue a decision       1,124        

within seven days after holding the hearing under this division.   1,127        

The staff hearing officer shall notify the parties and their       1,128        

respective representatives in writing of  the staff hearing        1,129        

officer's order.  Any party may appeal an order issued under this  1,130        

division pursuant to division (E) of this section within fourteen  1,131        

days after receipt of the order under this division.               1,132        

      (E)  Upon the filing of a timely appeal of the order of the  1,134        

staff hearing officer issued under division (D) of this section,   1,135        

the commission or a designated staff hearing officer, on behalf    1,136        

of the commission, shall determine whether the commission will     1,138        

hear the appeal.  If the commission or the designated staff                     

hearing officer decides to hear the appeal, the commission or the  1,140        

designated staff hearing officer shall notify the parties and      1,141        

their respective representatives in writing of the time and place  1,142        

of the hearing.  The commission shall hold the hearing within      1,143        

forty-five days after the filing of the notice of appeal and,      1,144        

within seven days after the conclusion of the hearing, the         1,145        

commission shall issue its order affirming, modifying, or          1,146        

reversing the order issued under division (D) of this section.     1,147        

The commission shall notify the parties and their respective       1,148        

representatives in writing of the order.  If the commission or     1,149        

the designated staff hearing officer determines not to hear the    1,150        

appeal, within fourteen days after the filing of the notice of     1,151        

appeal, the commission or the designated staff hearing officer     1,152        

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

their respective representatives in writing of that order.         1,153        

      Except as otherwise provided in this chapter and Chapters    1,155        

4121., 4127., and 4131. of the Revised Code, any party may appeal  1,156        

an order issued under this division to the court pursuant to       1,157        

section 4123.512 of the Revised Code within sixty days after       1,158        

receipt of the order, subject to the limitations contained in      1,159        

that section.                                                      1,160        

                                                          28     

                                                                 
      (F)  Every notice of an appeal from an order issued under    1,162        

divisions (B), (C), (D), and (E) of this section shall state the   1,163        

names of the claimant and employer, the number of the claim, the   1,164        

date of the decision appealed from, and the fact that the          1,165        

appellant appeals therefrom.                                       1,166        

      (G)  All of the following apply to the proceedings under     1,168        

divisions (C), (D), and (E) of this section:                       1,169        

      (1)  The parties shall proceed promptly and without          1,171        

continuances except for good cause;                                1,172        

      (2)  The parties, in good faith, shall engage in the free    1,174        

exchange of information relevant to the claim prior to the         1,175        

conduct of a hearing according to the rules the commission adopts  1,176        

under section 4121.36 of the Revised Code;                         1,177        

      (3)  The administrator is a party and may appear and         1,179        

participate at all administrative proceedings on behalf of the     1,180        

state insurance fund.  However, in cases in which the employer is  1,181        

represented, the administrator shall neither present arguments     1,182        

nor introduce testimony that is cumulative to that presented or    1,183        

introduced by the employer or the employer's representative.  The  1,184        

administrator may file an appeal under this section on behalf of                

the state insurance fund; however, except in cases arising under   1,185        

section 4123.343 of the Revised Code, the administrator only may   1,186        

appeal questions of law or issues of fraud when the employer       1,187        

appears in person or by representative.                                         

      (H)  Except as provided in division (J) of this section,     1,189        

payments of compensation to a claimant or on behalf of a claimant  1,190        

as a result of any order issued under this chapter shall commence  1,191        

upon the earlier of the following:                                 1,192        

      (1)  Fourteen days after the date the administrator issues   1,194        

an order under division (B) of this section, unless that order is  1,195        

appealed;                                                          1,196        

      (2)  Twenty-one days after the date when the employer has    1,198        

waived the right to appeal a decision issued under division (B)    1,199        

of this section;                                                                

                                                          29     

                                                                 
      (3)  If no appeal of an order has been filed under this      1,201        

section or to a court under section 4123.512 of the Revised Code,  1,202        

the expiration of the time limitations for the filing of an        1,203        

appeal of an order;                                                1,204        

      (4)  Twenty-one days after the date of receipt by the        1,206        

employer of an order of a district hearing officer, a staff        1,209        

hearing officer, or the industrial commission issued under         1,210        

division (C), (D), or (E) of this section.                         1,212        

      (I)  No medical benefits payable under this chapter or       1,214        

Chapter 4121., 4127., or 4131. of the Revised Code are payable     1,215        

until the earlier of the following:                                1,216        

      (1)  The date of the issuance of the staff hearing           1,218        

officer's order under division (D) of this section;                1,219        

      (2)  The date of the final administrative or judicial        1,221        

determination.                                                     1,222        

      (J)  Upon the final administrative or judicial               1,224        

determination UNDER THIS SECTION OR SECTION 4123.512 OF THE        1,225        

REVISED CODE OF AN APPEAL OF AN ORDER TO PAY COMPENSATION, if a    1,226        

claimant is found to have received compensation PURSUANT to A      1,227        

PRIOR ORDER which the claimant was not entitled IS REVERSED UPON   1,228        

SUBSEQUENT APPEAL, the claimant's employer, if a self-insuring     1,229        

employer, or the bureau, shall withhold from any amount to which   1,231        

the claimant becomes entitled pursuant to any claim, past,         1,232        

present, or future, under Chapter 4121., 4123., 4127., or 4131.    1,233        

of the Revised Code, the amount OF PREVIOUSLY PAID COMPENSATION    1,234        

to which the claimant was WHICH, DUE TO REVERSAL UPON APPEAL, THE  1,235        

CLAIMANT IS not entitled, pursuant to the following criteria:      1,236        

      (1)  No withholding for the first twelve weeks of temporary  1,238        

total disability compensation pursuant to section 4123.56 of the   1,239        

Revised Code shall be made;                                        1,240        

      (2)  Forty per cent of all awards of compensation paid       1,242        

pursuant to sections 4123.56 and 4123.57 of the Revised Code,      1,243        

until the amount overpaid is refunded;                             1,244        

      (3)  Twenty-five per cent of any compensation paid pursuant  1,246        

                                                          30     

                                                                 
to section 4123.58 of the Revised Code until the amount overpaid   1,247        

is refunded;                                                       1,248        

      (4)  If, pursuant to an appeal under section 4123.512 of     1,250        

the Revised Code, the court of appeals or the supreme court        1,251        

reverses the allowance of the claim, then no amount of any         1,252        

compensation will be withheld.                                     1,253        

      THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS, AS            1,255        

APPROPRIATE, ARE SUBJECT TO THE REPAYMENT SCHEDULE OF THIS         1,256        

DIVISION ONLY WITH RESPECT TO AN ORDER TO PAY COMPENSATION THAT    1,257        

WAS PROPERLY PAID UNDER A PREVIOUS ORDER, BUT WHICH IS                          

SUBSEQUENTLY REVERSED UPON AN ADMINISTRATIVE OR JUDICIAL APPEAL.   1,258        

THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS ARE NOT SUBJECT TO,  1,259        

BUT MAY UTILIZE, THE REPAYMENT SCHEDULE OF THIS DIVISION, OR ANY   1,260        

OTHER LAWFUL MEANS, TO COLLECT PAYMENT OF COMPENSATION MADE TO A   1,261        

PERSON WHO WAS NOT ENTITLED TO THE COMPENSATION DUE TO FRAUD AS    1,262        

DETERMINED BY THE ADMINISTRATOR OR THE INDUSTRIAL COMMISSION.      1,263        

      (K)  If a staff hearing officer or the commission fails to   1,265        

issue a decision or the commission fails to refuse to hear an      1,266        

appeal within the time periods required by this section, payments  1,267        

to a claimant shall cease until the staff hearing officer or       1,268        

commission issues a decision or hears the appeal, unless the       1,269        

failure was due to the fault or neglect of the employer or the     1,270        

employer agrees that the payments should continue for a longer     1,271        

period of time.                                                    1,272        

      (L)  Except as provided in section 4123.522 of the Revised   1,274        

Code, no appeal is timely filed under this section unless the      1,275        

appeal is filed with the time limits set forth in this section.    1,276        

      (M)  No person who is not an employee of the bureau or       1,278        

commission or who is not by law given access to the contents of a  1,279        

claims file shall have a file in the person's possession.          1,280        

      Sec. 4123.512.  (A)  The claimant or the employer may        1,289        

appeal an order of the industrial commission made under division   1,290        

(E) of section 4123.511 of the Revised Code in any injury or       1,291        

occupational disease case, other than a decision as to the extent  1,292        

                                                          31     

                                                                 
of disability or impairment, or percentage of impairment           1,293        

determined pursuant to division (A) of section 4123.57 of the      1,294        

Revised Code, to the court of common pleas of the county in which  1,297        

the injury was inflicted or in which the contract of employment    1,298        

was made if the injury occurred outside the state, or in which     1,299        

the contract of employment was made if the exposure occurred       1,300        

outside the state.  If no common pleas court has jurisdiction for  1,301        

the purposes of an appeal by the use of the jurisdictional         1,302        

requirements described in this division, the appellant may use     1,303        

the venue provisions in the Rules of Civil Procedure to vest       1,304        

jurisdiction in a court.  If the claim is for an occupational      1,305        

disease the appeal shall be to the court of common pleas of the    1,306        

county in which the exposure which caused the disease occurred.    1,307        

Like appeal may be taken from an order of a staff hearing officer  1,308        

made under division (D) of section 4123.511 of the Revised Code    1,309        

from which the commission has refused to hear an appeal.  The      1,310        

appellant shall file the notice of appeal with a court of common   1,311        

pleas within sixty days after the date of the receipt of the       1,312        

order appealed from or the date of receipt of the order of the     1,313        

commission refusing to hear an appeal of a staff hearing           1,314        

officer's decision under division (D) of section 4123.511 of the   1,315        

Revised Code.  The filing of the notice of the appeal with the     1,316        

court is the only act required to perfect the appeal.                           

      If an action has been commenced in a court of a county       1,318        

other than a court of a county having jurisdiction over the        1,319        

action, the court, upon notice by any party or upon its own        1,320        

motion, shall transfer the action to a court of a county having    1,321        

jurisdiction.                                                      1,322        

      Notwithstanding anything to the contrary in this section,    1,324        

if the commission determines under section 4123.522 of the         1,325        

Revised Code that an employee, employer, or their respective       1,326        

representatives have not received written notice of an order or    1,327        

decision which is appealable to a court under this section and     1,328        

which grants relief pursuant to section 4123.522 of the Revised    1,329        

                                                          32     

                                                                 
Code, the party granted the relief has sixty days from receipt of  1,330        

the order under section 4123.522 of the Revised Code to file a     1,331        

notice of appeal under this section.                               1,332        

      (B)  The notice of appeal shall state the names of the       1,334        

claimant and the employer, the number of the claim, the date of    1,335        

the order appealed from, and the fact that the appellant appeals   1,336        

therefrom.                                                         1,337        

      The administrator, the claimant, and the employer shall be   1,339        

parties to the appeal and the court, upon the application of the   1,340        

commission, shall make the commission a party.  The administrator  1,341        

shall notify the employer that, if the employer fails to become    1,344        

an active party to the appeal, the administrator may act on        1,345        

behalf of the employer and the results of the appeal could have    1,346        

an adverse effect upon the employer's premium rates.               1,347        

      (C)  The attorney general or one or more of the attorney     1,349        

general's assistants or special counsel designated by the          1,351        

attorney general shall represent the administrator and the         1,353        

commission.  If the attorney general or the attorney general's     1,354        

designated assistants or special counsel are absent, the           1,356        

administrator or the commission shall select one or more of the    1,357        

attorneys in the employ of the administrator or the commission as  1,358        

the administrator's attorney or the commission's attorney in the   1,359        

appeal.  Any attorney so employed shall continue the               1,361        

representation during the entire period of the appeal and in all   1,362        

hearings thereof except where the continued representation         1,363        

becomes impractical.                                                            

      (D)  Upon receipt of notice of appeal the clerk of courts    1,365        

shall provide notice to all parties who are appellees and to the   1,366        

commission.                                                        1,367        

      The claimant, within thirty days after the filing of the     1,370        

notice of appeal, shall file a petition containing a statement of               

facts in ordinary and concise language showing a cause of action   1,371        

to participate or to continue to participate in the fund and       1,372        

setting forth the basis for the jurisdiction of the court over     1,373        

                                                          33     

                                                                 
the action.  Further pleadings shall be had in accordance with     1,374        

the Rules of Civil Procedure, provided that service of summons on  1,375        

such petition shall not be required.  The clerk of the court,      1,376        

upon receipt thereof, shall transmit by certified mail a copy      1,378        

thereof to each party named in the notice of appeal other than     1,379        

the claimant.  Any party may file with the clerk prior to the      1,380        

trial of the action a deposition of any physician taken in         1,381        

accordance with the provisions of the Revised Code, which          1,382        

deposition may be read in the trial of the action even though the  1,383        

physician is a resident of or subject to service in the county in  1,384        

which the trial is had.  The bureau of workers' compensation       1,385        

shall pay the cost of the STENOGRAPHIC deposition filed in court   1,386        

and of copies of the STENOGRAPHIC deposition for each party from   1,388        

the surplus fund and charge the costs thereof against the          1,390        

unsuccessful party if the claimant's right to participate or       1,391        

continue to participate is finally sustained or established in     1,392        

the appeal.  In the event the deposition is taken and filed, the   1,393        

physician whose deposition is taken is not required to respond to  1,394        

any subpoena issued in the trial of the action.  The court, or     1,395        

the jury under the instructions of the court, if a jury is         1,396        

demanded, shall determine the right of the claimant to             1,397        

participate or to continue to participate in the fund upon the     1,398        

evidence adduced at the hearing of the action.                     1,399        

      (E)  The court shall certify its decision to the commission  1,401        

and the certificate shall be entered in the records of the court.  1,402        

Appeals from the judgment are governed by the law applicable to    1,403        

the appeal of civil actions.                                       1,404        

      (F)  The cost of any legal proceedings authorized by this    1,406        

section, including an attorney's fee to the claimant's attorney    1,407        

to be fixed by the trial judge, based upon the effort expended,    1,408        

in the event the claimant's right to participate or to continue    1,409        

to participate in the fund is established upon the final           1,410        

determination of an appeal, shall be taxed against the employer    1,411        

or the commission if the commission or the administrator rather    1,412        

                                                          34     

                                                                 
than the employer contested the right of the claimant to           1,413        

participate in the fund.  The attorney's fee shall not exceed      1,414        

twenty-five hundred dollars.                                       1,415        

      (G)  If the finding of the court or the verdict of the jury  1,417        

is in favor of the claimant's right to participate in the fund,    1,418        

the commission and the administrator shall thereafter proceed in   1,419        

the matter of the claim as if the judgment were the decision of    1,420        

the commission, subject to the power of modification provided by   1,421        

section 4123.52 of the Revised Code.                               1,422        

      (H)  An appeal from an order issued under division (E) of    1,424        

section 4123.511 of the Revised Code or any action filed in court  1,425        

in a case in which an award of compensation has been made shall    1,426        

not stay the payment of compensation under the award or payment    1,427        

of compensation for subsequent periods of total disability or      1,428        

impairment during the pendency of the appeal.  If, in a final      1,430        

administrative or judicial action, it is determined that payments  1,431        

of compensation or benefits, or both, made to or on behalf of a    1,432        

claimant should not have been made, the amount thereof shall be    1,433        

charged to the surplus fund under division (B) of section 4123.34  1,434        

of the Revised Code.  In the event the employer is a state risk,   1,435        

the amount shall not be charged to the employer's experience.  In  1,436        

the event the employer is a self-insuring employer, the            1,437        

self-insuring employer shall deduct the amount from the paid       1,438        

compensation he reports to the administrator under division (K)    1,439        

of section 4123.35 of the Revised Code.  All actions and           1,440        

proceedings under this section which are the subject of an appeal  1,441        

to the court of common pleas or the court of appeals shall be      1,442        

preferred over all other civil actions except election causes,     1,443        

irrespective of position on the calendar.                          1,444        

      This section applies to all decisions of the commission or   1,446        

the administrator on November 2, 1959, and all claims filed        1,447        

thereafter are governed by sections 4123.511 and 4123.512 of the   1,448        

Revised Code.                                                      1,449        

      Any action pending in common pleas court or any other court  1,451        

                                                          35     

                                                                 
on January 1, 1986, under this section is governed by former       1,452        

sections 4123.514, 4123.515, 4123.516, and 4123.519 and section    1,453        

4123.522 of the Revised Code.                                      1,454        

      Sec. 4123.57.  (A)(1)  Except as provided in division        1,463        

(A)(2) of this section, not earlier than forty weeks after the     1,465        

date of termination of the latest period of payments under         1,466        

section 4123.56 of the Revised Code, or not earlier than forty     1,467        

weeks after the date of the injury or the date of first diagnosis  1,468        

of an occupational disease by a licensed physician in the absence  1,469        

of payments under section 4123.56 of the Revised Code, an          1,470        

employee may file an application with the bureau of workers'       1,471        

compensation for the determination of the percentage of the        1,473        

employee's permanent partial impairment resulting from an injury   1,475        

or occupational disease.                                           1,476        

      (2)  An employee may file the application specified in       1,479        

division (A)(1) of this section without waiting forty weeks when   1,481        

either of the following occurs:                                                 

      (a)  The receipt of payments under division (A) of section   1,484        

4123.56 of the Revised Code is terminated by a hearing officer     1,486        

because the employee has reached maximum medical improvement.      1,488        

      (b)  The receipt of benefits under division (A) of section   1,491        

4123.56 of the Revised Code is terminated because the employee's   1,492        

attending physician certifies that the employee has reached        1,493        

maximum medical improvement.                                                    

      (3)  Whenever an application is filed under division (A)(1)  1,496        

or (2) of this section, the bureau shall send a copy of the        1,497        

application to the employee's employer or the employer's           1,498        

representative and, except when the option provided in division    1,499        

(A)(7) of this section is chosen, shall schedule the employee for  1,500        

a medical examination by the bureau medical section.  The bureau   1,501        

shall send a copy of the report of the medical examination to the  1,502        

employee, the employer, and their representatives.  The report of  1,503        

the medical examination shall contain a statement of the           1,506        

examiner's finding on the employee's percentage of permanent       1,507        

                                                          36     

                                                                 
partial impairment resulting from allowed conditions in the claim  1,508        

under the most recent edition of the American medical              1,509        

association's guides to the evaluation of permanent impairment.    1,510        

After receiving the report of the medical examination, the         1,511        

administrator of workers' compensation shall make a tentative      1,512        

order finding that the employee's percentage of permanent partial  1,514        

impairment is the same percentage shown by the report of the       1,515        

medical examination, unless the administrator determines that the  1,516        

report clearly is erroneous.  If the administrator determines      1,517        

that the report clearly is erroneous, the administrator shall                   

disregard the report, schedule the employee for another            1,519        

examination by the bureau medical section, and issue a tentative   1,520        

order that finds that the employee's percentage of permanent       1,521        

partial impairment is the same percentage shown by the second      1,522        

medical examination report.                                        1,523        

      (4)  The administrator shall notify the employee, the        1,525        

employer, and their representatives, in writing, of the tentative  1,526        

order and of the parties' right to request a hearing.  Within      1,528        

fourteen days after receipt of the tentative order, the employee,  1,529        

the employer, or their representatives, may file with the bureau   1,530        

an objection to the tentative order.  The opposing party must be   1,532        

served by the filing party with a copy of the objection to the     1,533        

tentative order not later than the day of filing.  Proper mailing  1,534        

of the objection to the tentative order to the opposing party      1,536        

constitutes service.  If an objection to the tentative order is    1,537        

not filed by a party by the deadline established by division       1,538        

(A)(4) of this section, the order becomes final.                   1,539        

      (5)  If the employee, the employer, or their                 1,541        

representatives timely notify the administrator of an objection    1,542        

to the tentative order, either party, within fourteen days after   1,545        

the date of filing or of receipt of an objection, whichever is                  

later, may request another examination by the bureau medical       1,547        

section.  The party requesting that examination shall pay the      1,548        

cost of that examination.  Upon that request, the bureau shall     1,549        

                                                          37     

                                                                 
schedule the employee for another medical examination by the       1,551        

bureau medical section.  All provisions of division (A)(3) of      1,552        

this section applicable to the first medical examination apply to  1,553        

a subsequent medical examination requested pursuant to division    1,554        

(A)(5) of this section.  The bureau shall send a copy of the       1,555        

report of the medical examination to the employee, the employer,   1,556        

and their representatives.                                                      

      Upon the filing of an objection to the tentative order or    1,558        

upon the completion of the medical examination requested pursuant  1,559        

to division (A)(5) of this section, whichever is later, the        1,562        

matter shall be referred to a district hearing officer who shall   1,563        

set the application for hearing with written notices to all        1,564        

interested persons.  At the hearing, the district hearing officer  1,565        

first shall make a finding as to whether any of the following has  1,566        

occurred:                                                          1,567        

      (a)  The bureau medical section based its report, at least   1,570        

in part, on conditions not allowed in the claim;                                

      (b)  The bureau medical section failed to consider all of    1,573        

the allowed conditions in the claim;                                            

      (c)  The bureau medical section's examiner was prejudiced    1,576        

against the employer or the employee;                                           

      (d)  The bureau medical section failed to properly apply     1,579        

the most recent edition of the American medical association's      1,580        

guides to the evaluation of permanent impairment in determining    1,581        

the employee's percentage of permanent impairment;                 1,582        

      (e)  The tentative order provides for the payment of         1,584        

compensation under a circumstance in which that compensation is    1,585        

barred by this section or any other provision of law.              1,586        

      If the district hearing officer finds one of the situations  1,589        

described in division (A)(5)(a), (b), (c) or (d) of this section,  1,591        

the district hearing officer shall issue an order rejecting the    1,593        

report of the medical examination and requiring the bureau         1,594        

medical section to perform a new medical examination.  All         1,595        

provisions of this division applicable to the first medical        1,596        

                                                          38     

                                                                 
examination and the determination of the percentage of permanent   1,597        

partial impairment apply to any subsequent medical examination     1,598        

that is ordered under this division.  If the district hearing      1,599        

officer finds the situation described in division (A)(5)(e) of     1,600        

this section, the district hearing officer shall issue an order    1,601        

denying the application.  If the district hearing officer finds    1,603        

none of the situations described in division (A)(5)(a), (b), (c),  1,604        

(d), or (e) of this section, the district hearing officer shall    1,606        

issue an order finding that the employee's percentage of           1,607        

permanent partial impairment is the same percentage shown by       1,608        

either the first or any subsequent bureau medical examination      1,609        

report.                                                                         

      (6)  An employee may file an application for a subsequent    1,612        

determination of the percentage of the employee's permanent        1,613        

impairment.  No application for subsequent percentage              1,615        

determinations on the same claim for injury or occupational                     

disease shall be accepted unless supported by substantial          1,616        

evidence of new and changed circumstances developing since the     1,617        

time of the last determination.  If an application is filed under  1,619        

division (A)(6) of this section, the bureau shall treat the        1,620        

application as though it was an original application for the       1,621        

determination of the percentage of permanent partial impairment,   1,622        

EXCEPT THAT THE BUREAU MAY REQUIRE EITHER A MEDICAL EXAMINATION    1,623        

OR A MEDICAL REVIEW OF THE EMPLOYEE.  In no instance shall the     1,625        

former award be modified unless it is found from medical or        1,626        

clinical findings that the condition of the employee resulting     1,627        

from the injury or occupational disease has so progressed as to    1,629        

have increased the percentage of permanent partial impairment.     1,630        

All provisions of this division applicable to an original                       

application apply to an application for subsequent determination.  1,631        

The decision of a district hearing officer on an employee's        1,633        

application filed under division (A)(1), (2), and (6) of this      1,635        

section is final.                                                  1,636        

      (7)  Notwithstanding divisions (A)(3) through (6) of this    1,639        

                                                          39     

                                                                 
section, the determination of an employee's percentage of          1,640        

permanent partial impairment shall be made in accordance with      1,641        

division (A)(7) of this section, upon the written agreement by an  1,643        

employee and employer to utilize the alternative method of         1,644        

determination provided in division (A)(7) of this section.         1,646        

Within seven days after receipt of the written agreement, the      1,647        

administrator shall assign a physician from the impairment         1,648        

evaluation panel within the bureau medical section to conduct a    1,649        

medical examination of the employee and send written notice to     1,650        

the employee and employer of that assignment.  The employee and    1,651        

employer each shall select a physician from the impairment         1,652        

evaluation panel who shall serve as consultants to the assigned    1,653        

physician if the employee or employer objects to the assigned      1,654        

physician's determination.                                                      

      Within twenty-one days after assignment, the assigned        1,656        

physician shall conduct a medical examination of the employee and  1,658        

provide to the administrator a report of the medical examination   1,659        

stating the employee's percentage of permanent partial impairment  1,660        

resulting from the allowed conditions in the claim under the most  1,661        

recent edition of the American medical association's guides to     1,663        

the evaluation of permanent impairment.  Immediately upon receipt  1,664        

of the report, the administrator shall send a copy of the report   1,665        

to the employee and employer.                                                   

      Within twenty-one days after receipt of the report, an       1,667        

employee or employer may send written notice to the administrator  1,669        

objecting to the report.  If a written notice of objection is not  1,670        

timely received, the assigned physician's determination of the     1,671        

percentage of permanent partial impairment of an employee is       1,672        

final, notwithstanding section 4123.511 of the Revised Code.  If   1,674        

a written notice of objection is timely received, the              1,675        

administrator shall provide a copy of the assigned physician's     1,676        

report to the consulting physicians selected by the employee and   1,677        

employer, within seven days after receipt of the objection.        1,678        

      Within twenty-one days after receipt of the report, both     1,680        

                                                          40     

                                                                 
consulting physicians shall confer with the assigned physician     1,681        

and jointly, on the basis of the opinion of a majority of the      1,682        

physicians, issue a final report stating the employee's            1,683        

percentage of permanent partial impairment resulting from the      1,684        

allowed conditions in the claim under the most recent edition of   1,685        

the American medical association's guides to the evaluation of     1,687        

permanent impairment.  Within fourteen days after receipt of the   1,688        

final report, the administrator shall send a copy of the final     1,689        

report to the employee and employer.  Notwithstanding section      1,690        

4123.511 of the Revised Code, the percentage of permanent partial  1,692        

impairment of an employee stated in the final report issued        1,693        

pursuant to division (A)(7) of this section is final.              1,695        

      (8)  Compensation payable under division (A) of this         1,698        

section accrues and is payable to the employee from the date of    1,699        

last payment of compensation, or, in cases where no previous       1,700        

compensation has been paid, from the date of the injury or, for    1,701        

occupational diseases, the date of disease.  The employee shall    1,703        

receive sixty-six and two-thirds per cent of the employee's        1,704        

average weekly wage, but not more than a maximum of thirty-three   1,705        

and one-third per cent of the statewide average weekly wage as     1,706        

defined in division (C) of section 4123.62 of the Revised Code,    1,708        

per week regardless of the average weekly wage for the number of   1,709        

weeks that equals the percentage of two hundred weeks.  If the     1,711        

percentage of the permanent impairment of the employee equals or   1,712        

exceeds ninety per cent, compensation for permanent partial                     

impairment shall be paid for two hundred weeks.  No award shall    1,713        

be made under division (A) of this section based upon a            1,714        

percentage of impairment that, when taken with all other           1,715        

percentages of permanent impairment, exceeds one hundred per       1,716        

cent.  Notwithstanding division (H) of section 4123.511 of the     1,718        

Revised Code, the bureau or a self-insuring employer shall pay a   1,720        

permanent partial impairment award within twenty-one days after                 

the date on which an order fixing the employee's percentage of     1,722        

permanent partial impairment becomes final.                        1,723        

                                                          41     

                                                                 
      As used in this division, "date of disease" means the date   1,726        

an occupational disease is first diagnosed by a licensed                        

physician, or for an occupational disease described in divisions   1,727        

(A) through (AA) of section 4123.68 of the Revised Code or other   1,731        

occupational disease that results from exposure to                 1,732        

fibrosis-producing or toxic dusts, fumes, mists, vapors, gases,    1,733        

or liquids, or other toxic materials, or a combination of those,   1,734        

the date that the employee first misses work as a result of the    1,735        

occupational disease.                                              1,736        

      (9)  When an award under division (A) of this section has    1,740        

been made prior to the death of an employee, all unpaid            1,741        

installments accrued or to accrue under the provisions of the      1,742        

award are payable to the surviving spouse, or if there is no       1,743        

surviving spouse, to the dependent children of the employee, and   1,744        

if there are no children surviving, then to other dependents as    1,745        

the administrator determines.                                      1,746        

      (B)  In cases included in the following schedule the         1,748        

compensation payable per week to the employee is the statewide     1,749        

average weekly wage as defined in division (C) of section 4123.62  1,750        

of the Revised Code per week and shall continue during the         1,751        

periods provided in the following schedule:                        1,752        

      For the loss of a thumb, sixty weeks.                        1,754        

      For the loss of a first finger, commonly called index        1,756        

finger, thirty-five weeks.                                         1,757        

      For the loss of a second finger, thirty weeks.               1,759        

      For the loss of a third finger, twenty weeks.                1,761        

      For the loss of a fourth finger, commonly known as the       1,763        

little finger, fifteen weeks.                                      1,764        

      The loss of a second, or distal, phalange of the thumb is    1,766        

considered equal to the loss of one half of such thumb; the loss   1,767        

of more than one half of such thumb is considered equal to the     1,768        

loss of the whole thumb.                                           1,769        

      The loss of the third, or distal, phalange of any finger is  1,771        

considered equal to the loss of one-third of the finger.           1,772        

                                                          42     

                                                                 
      The loss of the middle, or second, phalange of any finger    1,774        

is considered equal to the loss of two-thirds of the finger.       1,775        

      The loss of more than the middle and distal phalanges of     1,777        

any finger is considered equal to the loss of the whole finger.    1,778        

In no case shall the amount received for more than one finger      1,779        

exceed the amount provided in this schedule for the loss of a      1,780        

hand.                                                              1,781        

      For the loss of the metacarpal bone (bones of the palm) for  1,783        

the corresponding thumb, or fingers, add ten weeks to the number   1,784        

of weeks under this division.                                      1,785        

      For ankylosis (total stiffness of) or contractures (due to   1,787        

scars or injuries) which makes any of the fingers, thumbs, or      1,788        

parts of either useless, the same number of weeks apply to the     1,789        

members or parts thereof as given for the loss thereof.            1,790        

      If the claimant has suffered the loss of two or more         1,792        

fingers by amputation or ankylosis and the nature of the           1,793        

claimant's employment in the course of which the claimant was      1,795        

working at the time of the injury or occupational disease is such  1,796        

that the handicap or impairment resulting from the loss of         1,797        

fingers, or loss of use of fingers, exceeds the normal handicap    1,799        

or impairment resulting from the loss of fingers, or loss of use   1,801        

of fingers, the administrator may take that fact into              1,802        

consideration and increase the award of compensation accordingly,  1,803        

but the award made shall not exceed the amount of compensation     1,804        

for loss of a hand.                                                1,805        

      For the loss of a hand, one hundred seventy-five weeks.      1,807        

      For the loss of an arm, two hundred twenty-five weeks.       1,809        

      For the loss of a great toe, thirty weeks.                   1,811        

      For the loss of one of the toes other than the great toe,    1,813        

ten weeks.                                                         1,814        

      The loss of more than two-thirds of any toe is considered    1,816        

equal to the loss of the whole toe.                                1,817        

      The loss of less than two-thirds of any toe is considered    1,819        

no loss, except as to the great toe; the loss of the great toe up  1,820        

                                                          43     

                                                                 
to the interphalangeal joint is co-equal to the loss of one-half   1,821        

of the great toe; the loss of the great toe beyond the             1,822        

interphalangeal joint is considered equal to the loss of the       1,823        

whole great toe.                                                   1,824        

      For the loss of a foot, one hundred fifty weeks.             1,826        

      For the loss of a leg, two hundred weeks.                    1,828        

      For the loss of the sight of an eye, one hundred             1,830        

twenty-five weeks.                                                 1,831        

      For the permanent partial loss of sight of an eye, the       1,833        

portion of one hundred twenty-five weeks as the administrator in   1,834        

each case determines, based upon the percentage of vision          1,835        

actually lost as a result of the injury or occupational disease,   1,836        

but, in no case shall an award of compensation be made for less    1,837        

than twenty-five per cent loss of uncorrected vision.  "Loss of    1,838        

uncorrected vision" means the percentage of vision actually lost   1,839        

as the result of the injury or occupational disease.               1,840        

      For the permanent and total loss of hearing of one ear,      1,842        

twenty-five weeks; but in no case shall an award of compensation   1,843        

be made for less than permanent and total loss of hearing of one   1,844        

ear.                                                               1,845        

      For the permanent and total loss of hearing, one hundred     1,847        

twenty-five weeks; but, except pursuant to the next preceding      1,848        

paragraph, in no case shall an award of compensation be made for   1,849        

less than permanent and total loss of hearing.                     1,850        

      In case an injury or occupational disease results in         1,852        

serious facial or head disfigurement which either impairs or may   1,853        

in the future impair the opportunities to secure or retain         1,854        

employment, the administrator shall make an award of compensation  1,855        

as the administrator deems proper and equitable, in view of the    1,857        

nature of the disfigurement, and not to exceed the sum of five     1,858        

thousand dollars.  For the purpose of making the award, it is not  1,859        

material whether the employee is gainfully employed in any         1,860        

occupation or trade at the time of the administrator's             1,861        

determination.                                                                  

                                                          44     

                                                                 
      When an award under this division has been made prior to     1,863        

the death of an employee all unpaid installments accrued or to     1,864        

accrue under the provisions of the award shall be payable to the   1,865        

surviving spouse, or if there is no surviving spouse, to the       1,866        

dependent children of the employee and if there are no such        1,867        

children, then to such dependents as the administrator             1,868        

determines.                                                        1,869        

      When an employee has sustained the loss of a member by       1,871        

severance, but no award has been made on account thereof prior to  1,872        

the employee's death, the administrator shall make an award in     1,874        

accordance with this division for the loss which shall be payable  1,875        

to the surviving spouse, or if there is no surviving spouse, to    1,876        

the dependent children of the employee and if there are no such    1,877        

children, then to such dependents as the administrator             1,878        

determines.                                                        1,879        

      (C)  Compensation for partial impairment under divisions     1,882        

(A) and (B) of this section is in addition to the compensation     1,883        

paid the employee pursuant to section 4123.56 of the Revised       1,884        

Code.  A claimant may receive compensation under divisions (A)     1,885        

and (B) of this section.  No employee may receive compensation     1,887        

under division (A) of this section or receive a medical            1,888        

examination provided for by this section during the time in which  1,889        

that employee is receiving compensation under section 4123.58 of   1,891        

the Revised Code in any claim or is receiving compensation under   1,893        

section 4123.56 of the Revised Code on the same claim in which     1,894        

the employee is seeking compensation under this section.  The      1,895        

employee shall list on the application specified in divisions      1,896        

(A)(1) and (2) of this section the claim numbers of all other      1,897        

claims for which the employee is a claimant.                       1,898        

      In all cases arising under division (B) of this section, if  1,900        

it is determined by any one of the following:  (1) the amputee     1,901        

clinic at University hospital, Ohio state university; (2) the      1,902        

rehabilitation services commission; (3) an amputee clinic or       1,903        

prescribing physician approved by the administrator or the         1,904        

                                                          45     

                                                                 
administrator's designee, that an injured or impaired employee is  1,906        

in need of an artificial appliance, or in need of a repair         1,908        

thereof, regardless of whether the appliance or its repair will    1,909        

be serviceable in the vocational rehabilitation of the injured     1,910        

employee, and regardless of whether the employee has returned to   1,911        

or can ever again return to any gainful employment, the bureau     1,912        

shall pay the cost of the artificial appliance or its repair out   1,913        

of the surplus created by division (B) of section 4123.34 of the   1,914        

Revised Code.                                                                   

      In those cases where a rehabilitation services commission    1,916        

recommendation that an injured or impaired employee is in need of  1,918        

an artificial appliance would conflict with their state plan,      1,919        

adopted pursuant to the "Rehabilitation Act of 1973," 87 Stat.     1,920        

355, 29 U.S.C.A. 701, the administrator or the administrator's     1,922        

designee or the bureau may obtain a recommendation from an         1,923        

amputee clinic or prescribing physician that they determine        1,924        

appropriate.                                                                    

      (D)  If an employee makes application for a finding and is   1,927        

found to have contracted silicosis as defined in division (X), or  1,928        

coal miners' pneumoconiosis as defined in division (Y), or         1,929        

asbestosis as defined in division (AA) of section 4123.68 of the   1,930        

Revised Code, and it is found that a change of such employee's     1,931        

occupation is medically advisable in order to decrease             1,933        

substantially further exposure to silica dust, asbestos, or coal   1,934        

dust and if the employee, after the finding, has changed or shall  1,935        

change the employee's occupation to an occupation in which the     1,937        

exposure to silica dust, asbestos, or coal dust is substantially   1,938        

decreased, the employee shall receive an amount equal to fifty     1,939        

per cent of the statewide average weekly wage per week for a       1,941        

period of thirty weeks, commencing as of the date of the           1,942        

discontinuance or change, and for a period of one hundred weeks    1,943        

immediately following the expiration of the period of thirty       1,944        

weeks, the employee shall receive sixty-six and two-thirds per     1,946        

cent of the loss of wages resulting directly and solely from the   1,947        

                                                          46     

                                                                 
change of occupation but not to exceed a maximum of an amount      1,948        

equal to fifty per cent of the statewide average weekly wage per   1,949        

week.  No such employee is entitled to receive more than one       1,950        

allowance on account of discontinuance of employment or change of  1,951        

occupation and benefits shall cease for any period during which    1,952        

the employee is employed in an occupation in which the exposure    1,953        

to silica dust, asbestos, or coal dust is not substantially less   1,954        

than the exposure in the occupation in which the employee was      1,955        

formerly employed or for any period during which the employee may  1,957        

be entitled to receive compensation or benefits under section      1,958        

4123.68 of the Revised Code on account of disability from          1,959        

silicosis, asbestosis, or coal miners' pneumoconiosis.  An award   1,960        

for change of occupation for a coal miner who has contracted coal  1,961        

miners' pneumoconiosis may be granted under this division even     1,962        

though the coal miner continues employment with the same           1,964        

employer, so long as the coal miner's employment subsequent to     1,966        

the change is such that the coal miner's exposure to coal dust is  1,968        

substantially decreased and a change of occupation is certified    1,969        

by the claimant as permanent.  Medical and other benefits shall    1,970        

be paid to the employee in accordance with section 4123.66 of the  1,972        

Revised Code.                                                                   

      (E)  If a firefighter or police officer makes application    1,975        

for a finding and the administrator finds that the firefighter or  1,976        

police officer has contracted a cardiovascular and pulmonary       1,978        

disease as defined in division (W) of section 4123.68 of the       1,979        

Revised Code, and that a change of the firefighter's or police     1,980        

officer's occupation is medically advisable in order to decrease   1,982        

substantially further exposure to smoke, toxic gases, chemical     1,983        

fumes, and other toxic vapors, and if the firefighter, or police   1,984        

officer, after the finding, has changed or changes occupation to   1,986        

an occupation in which the exposure to smoke, toxic gases,         1,987        

chemical fumes, and other toxic vapors is substantially            1,988        

decreased, the administrator shall allow to the firefighter or     1,989        

police officer an amount equal to fifty per cent of the statewide  1,991        

                                                          47     

                                                                 
average weekly wage per week for a period of thirty weeks,         1,992        

commencing as of the date of the discontinuance or change, and     1,993        

for a period of seventy-five weeks immediately following the       1,994        

expiration of the period of thirty weeks the administrator shall   1,995        

allow the firefighter or police officer sixty-six and two-thirds   1,997        

per cent of the loss of wages resulting directly and solely from   1,998        

the change of occupation but not to exceed a maximum of an amount  1,999        

equal to fifty per cent of the statewide average weekly wage per   2,000        

week.  No such firefighter or police officer is entitled to        2,002        

receive more than one allowance on account of discontinuance of    2,003        

employment or change of occupation and benefits shall cease for    2,004        

any period during which the firefighter or police officer is       2,005        

employed in an occupation in which the exposure to smoke, toxic    2,007        

gases, chemical fumes, and other toxic vapors is not               2,008        

substantially less than the exposure in the occupation in which    2,009        

the firefighter or police officer was formerly employed or for     2,010        

any period during which the firefighter or police officer may be   2,012        

entitled to receive compensation or benefits under section         2,013        

4123.68 of the Revised Code on account of disability from a        2,014        

cardiovascular and pulmonary disease.  The administrator may       2,015        

accord to the firefighter or police officer medical and other      2,017        

benefits in accordance with section 4123.66 of the Revised Code.   2,018        

      (F)  An order issued under division (B), (D), or (E) of      2,021        

this section is appealable pursuant to section 4123.511 of the     2,022        

Revised Code but is not appealable to court under section          2,023        

4123.512 of the Revised Code.                                                   

      Section 2.  That existing sections 2317.45, 4121.12,         2,025        

4121.121, 4121.125, 4123.34, 4123.511, 4123.512, and 4123.57 of    2,026        

the Revised Code are hereby repealed.                              2,028        

      Section 3.  The Administrator of Workers' Compensation       2,030        

shall submit a series of reports to the Workers' Compensation      2,031        

Oversight Commission, the Office of Budget and Management, the     2,032        

Legislative Budget Office of the Legislative Service Commission,   2,033        

and the General Assembly semiannually during the 1997-1999         2,035        

                                                          48     

                                                                 
biennium, beginning on or before October 1, 1997, containing                    

information relative to all of the following:                      2,037        

      (A)  The premium cost per worker, which reports the average  2,039        

annual cost a state fund employer pays to provide workers'         2,040        

compensation coverage for its employees.  The premium cost per     2,041        

worker is calculated by adding together an employer's total        2,042        

amounts of premiums and assessments paid during a calendar year    2,043        

and dividing that sum by the employer's average number of          2,044        

workers.                                                           2,045        

      (B)  The claims cost per worker, which reports the average   2,047        

annual benefit cost paid for each worker who is employed by a      2,048        

state fund employer during the preceding twelve months.  The       2,049        

claims cost per worker is calculated by dividing an employer's     2,050        

total claim expenses paid during the preceding twelve months by    2,051        

the employer's average number of workers.                          2,052        

      (C)  The administrative cost per claim, which reports the    2,054        

average annual administrative expense a state fund employer pays   2,055        

to process a claim.  The administrative cost per claim is          2,056        

calculated by dividing an employer's total amount of               2,057        

administrative expenses incurred during the preceding twelve       2,058        

months by the total number of claims the employer processed.       2,059        

      (D)  The direct loss ratio, which measures the relationship  2,061        

between an employer's revenues and workers' compensation benefits  2,063        

paid to an injured worker during the preceding twelve months;      2,064        

      (E)  The rate of return generated by investments of the      2,066        

Bureau of Workers' Compensation;                                   2,067        

      (F)  The customer service index, which accounts for various  2,069        

statistical measures reflecting the Bureau's customer service      2,070        

levels;                                                            2,071        

      (G)  The Health Partnership Program performance index,       2,073        

which measures the effectiveness of managed care organizations     2,074        

working for the Bureau and reflects the quality of care, customer  2,075        

satisfaction, and cost of care provided by the managed care        2,076        

organizations;                                                     2,077        

                                                          49     

                                                                 
      (H)  The rate of injury in the state per 1,000 workers;      2,079        

      (I)  The average and median number of days the Bureau takes  2,081        

to adjudicate an injured worker's medical bill fee;                2,082        

      (J)  The return-to-work rate of state fund employers'        2,084        

injured workers who do not receive workers' compensation benefits  2,085        

for at least ninety days following their injury, which reports     2,086        

the number of injured workers who returned to work as a            2,087        

percentage of total injuries;                                      2,088        

      (K)  The average number of days it takes for an employer or  2,090        

injured worker to report an injury to the Bureau, which is         2,091        

calculated by taking the average number of days between the date   2,092        

of injury and the date the claim was filed with the Bureau;        2,093        

      (L)  The percentage of indemnity claims adjudicated by the   2,095        

Bureau within fourteen days of the injury.                         2,096        

      Section 4.  All items in this section are hereby             2,098        

appropriated out of any moneys in the state treasury to the        2,099        

credit of the designated fund.  For all appropriations made in     2,100        

this act, those in the first column are for fiscal year 1998, and  2,101        

those in the second column are for fiscal year 1999.                            

              BWC  BUREAU OF WORKERS' COMPENSATION                 2,102        

FND ALI     ALI TITLE                    FY 1998        FY 1999    2,105        

Workers' Compensation Fund Group                                   2,107        

023 855-401 William Green Lease                                    2,110        

            Payments to OBA       $   14,665,000 $   15,465,000    2,112        

4Y6 855-611 J.L. Camera Center                                     2,114        

            Rent                  $    1,592,800 $    1,681,997    2,116        

4Y6 855-612 J.L. Camera Center                                     2,118        

            Operating             $    7,381,302 $    7,345,026    2,120        

023 855-407 Claims, Risk &                                         2,122        

            Medical Management    $  129,400,786 $  123,784,337    2,124        

023 855-408 Fraud Prevention      $    9,000,705 $    8,111,383    2,128        

023 855-409 Administrative                                         2,130        

            Services              $  111,629,196 $  114,654,976    2,132        

023 855-410 Attorney General                                       2,134        

                                                          50     

                                                                 
            Payments              $    3,017,914 $    3,227,422    2,136        

825 855-605 DWRF                  $      635,629 $      651,961    2,140        

822 855-606 Coal Workers' Fund    $       73,684 $       75,545    2,144        

823 855-608 Marine Industry       $       42,536 $       43,599    2,148        

826 855-609 Safety & Hygiene      $   17,981,552 $   17,991,764    2,152        

TOTAL WCF Workers' Compensation                                    2,153        

   Fund Group                     $  295,421,104 $  293,033,010    2,156        

TOTAL ALL BUDGET FUND GROUPS      $  295,421,104 $  293,033,010    2,159        

      Safety and Hygiene                                           2,162        

      Notwithstanding section 4121.37 of the Revised Code, the     2,164        

Administrator of the Bureau of Workers' Compensation shall         2,165        

transfer moneys from the State Insurance Fund so that              2,166        

appropriation line item 855-609, Safety and Hygiene, is provided                

$17,981,552 in fiscal year 1998 and $17,991,764 in fiscal year     2,167        

1999.                                                                           

      Workers' Compensation Fraud Unit                             2,169        

      The Workers' Compensation Section Fund (Fund 195) shall      2,171        

receive payments from the Bureau of Workers' Compensation at the   2,172        

beginning of each quarter of each fiscal year to fund expenses of  2,173        

the Workers' Compensation Fraud Unit of the Attorney General's     2,174        

Office.  Of the foregoing appropriation item 855-410, Attorney     2,175        

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

fiscal year 1999 shall be used to provide such payments.           2,176        

      William Green Lease Payments                                 2,178        

      The foregoing appropriation item 855-401, William Green      2,180        

Lease Payments to OBA, shall be used for lease payments to the     2,181        

Ohio Building Authority, and these appropriations shall be used    2,182        

to meet all payments at the times they are required to be made     2,183        

during the period from July 1, 1997, to June 30, 1999, by the      2,184        

Bureau of Workers' Compensation to the Ohio Building Authority                  

pursuant to leases and agreements made under Chapter 152. of the   2,185        

Revised Code and Section 6 of Am. Sub. H.B. 743 of the 118th       2,186        

General Assembly.  Of the amounts received in Fund 023,            2,187        

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

                                                          51     

                                                                 
restricted for lease rental payments to the Ohio Building          2,188        

Authority.  If it is determined that additional appropriations     2,189        

are necessary for such purpose, such amounts are hereby            2,190        

appropriated.                                                                   

      Notwithstanding any other provision of law to the contrary,  2,192        

all tenants of the William Green Building not funded by the        2,193        

Workers' Compensation Fund (Fund 023) shall pay their fair share   2,194        

of the costs of lease payments to the Workers' Compensation Fund   2,195        

(Fund 023) by intrastate transfer voucher.                                      

      Camera Center                                                2,197        

      The Camera Center Fund (Fund 4Y6) created in division (F)    2,199        

of section 4121.62 of the Revised Code shall receive revenues      2,200        

raised by the fees Camera Center charges for its services and      2,201        

rent paid by tenants of the Center's facilities.  The foregoing    2,202        

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

used to pay rent, including building operating expenses, of the    2,203        

J. Leonard Camera Rehabilitation Center in Columbus.  The          2,204        

foregoing appropriation item 855-612, J.L. Camera Center           2,205        

Operating, shall be used for all other expenses for the Center.    2,206        

      The Bureau of Workers' Compensation shall not consider       2,208        

appropriations made to the Camera Center Fund (Fund 4Y6) when      2,209        

establishing administrative cost rates.                                         

      Balances                                                     2,211        

      Notwithstanding any provision of law to the contrary, the    2,213        

Director of Budget and Management shall make any transfers of      2,214        

cash balances between funds made necessary by the creation of new  2,215        

funds, or the consolidation of funds as authorized by the General  2,216        

Assembly.  Within the first five days after the effective date of  2,217        

this section, the administering agency head shall certify to the   2,218        

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

transferred to the receiving fund.  The Director may transfer the  2,219        

estimated amount when needed to make payments.  Within thirty      2,220        

days after the effective date of this section, the administering   2,221        

agency head shall certify the final amount to the Director.  The   2,222        

                                                          52     

                                                                 
Director shall transfer the difference between any estimated                    

amount previously transferred and such certified final amount.     2,223        

      To implement such funding changes as described above         2,225        

pertaining to prior year encumbrance balances and commensurate     2,226        

appropriation authority, in fiscal year 1998 the Director of       2,227        

Budget and Management may cancel encumbrances outstanding on June  2,228        

30, 1997, and reestablish such prior year encumbrances or parts    2,229        

of encumbrances as needed in fiscal year 1998 in the appropriate                

fund or appropriation line item as authorized in this act for the  2,230        

same purpose and to the same vendor.  As determined by the         2,231        

Director, the appropriation authority necessary to reestablish     2,232        

such prior year encumbrances in fiscal year 1998 in a different    2,233        

fund or appropriation line item within an agency or between                     

agencies is hereby authorized.  The Director shall reduce each     2,234        

prior year's appropriation authority by the amount of the          2,235        

encumbrances canceled in their respective funds and appropriation  2,236        

line items.                                                                     

      Vocational Rehabilitation                                    2,238        

      The Bureau of Workers' Compensation and the Rehabilitation   2,240        

Services Commission shall enter into an interagency agreement for  2,241        

the provision of vocational rehabilitation services and staff to   2,242        

mutually eligible clients.  The Bureau shall provide $519,608 in   2,243        

fiscal year 1998 and $534,157 in fiscal year 1999 from the State   2,244        

Insurance Fund to fund vocational rehabilitation services and      2,245        

staff in accordance with the interagency agreement.                2,246        

      Fund Balance                                                 2,248        

      Any unencumbered cash balance in excess of $45,000,000 in    2,250        

the Workers' Compensation Fund (Fund 023) on the thirtieth day of  2,251        

June of each fiscal year shall be used to reduce the               2,252        

administrative cost rate charged to employers to cover             2,253        

appropriations for Bureau of Workers' Compensation and Industrial  2,254        

Commission operations.                                             2,255        

      Section 5.  Accounting                                       2,257        

      Within the limits set forth in this act, the Director of     2,260        

                                                          53     

                                                                 
Budget and Management shall establish accounts indicating the      2,261        

source and amount of funds for each appropriation made in this                  

act, and shall determine the form and manner in which              2,262        

appropriation accounts shall be maintained.                        2,263        

      The appropriations made in this act are subject to all       2,265        

provisions of the main operating appropriations act of the 122nd   2,266        

General Assembly that are generally applicable to such             2,267        

appropriations.                                                                 

      Section 6.  Reissuance of Voided Warrants                    2,269        

      In order to provide funds for the reissuance of voided       2,271        

warrants pursuant to section 117.47 of the Revised Code, there is  2,272        

hereby appropriated, out of moneys in the state treasury from the  2,273        

fund credited as provided in section 117.47 of the Revised Code,   2,274        

that amount sufficient to pay such warrants when approved by the   2,275        

Office of Budget and Management.                                   2,276        

      Section 7.  Judgments Against State                          2,278        

      Any appropriations contained in this act, except those to    2,280        

be applied to or used for payment of guarantees by or on behalf    2,281        

of the state or for debt service on bonds, notes, or certificates  2,282        

of participation, may be used pursuant to section 2743.15,         2,283        

2743.19, or 2743.191 of the Revised Code for the purpose of        2,284        

satisfying judgments, settlements, or administrative awards        2,285        

ordered or approved by the Court of Claims in connection with      2,286        

civil actions against the state.                                   2,287        

      Section 8.  Reappropriation of Unexpended Balances           2,289        

      Notwithstanding section 131.33 of the Revised Code,          2,291        

unexpended balances of appropriations and reappropriations         2,292        

against which encumbrances have been lawfully incurred by a state  2,293        

agency are, at the close of fiscal year 1997, to the extent of     2,294        

such encumbrances, hereby reappropriated from the funds from       2,295        

which they were originally appropriated and reappropriated and,    2,296        

except for encumbrances for items of special order manufacture     2,297        

not available on term contract or open market, made available for  2,298        

the purpose of discharging such encumbrances for a period of five  2,299        

                                                          54     

                                                                 
months from the end of the fiscal year.  Unexpended balances of    2,300        

appropriations and reappropriations against which encumbrances     2,301        

for items of special order manufacture not available on term       2,302        

contract or in the open market have been lawfully incurred are,    2,303        

at the close of the fiscal year, to the extent of such             2,304        

encumbrances, hereby reappropriated and made available for the                  

purpose of discharging such encumbrances for a period of five      2,305        

months from the end of the fiscal year or, if the Director of      2,306        

Budget and Management approves, for a period of not more than      2,307        

twelve months from the end of the fiscal year.                     2,308        

      Any items for which unexpended balances are reappropriated   2,310        

beyond a five-month period from the end of the fiscal year shall   2,311        

be reported to the Controlling Board by the Director of Budget     2,312        

and Management.  The report on each such item shall include the    2,313        

item, the cost of the item, the vendor involved, and the delivery  2,314        

date.  Such reports to the board shall be updated on a quarterly   2,315        

basis while the encumbrance remains open.                          2,316        

      After any such period, reappropriations made for the         2,318        

purpose of discharging encumbrances for operating expenses,        2,319        

defined as those encumbrances incurred for personal services,      2,320        

maintenance, and equipment, are canceled.  Reappropriations for    2,321        

encumbrances other than operating expenses or items of special     2,322        

manufacture not available on term contract or in the open market   2,323        

may be extended by obtaining the approval of the Director of       2,324        

Budget and Management.                                                          

      Section 9.  If any item of law that constitutes the whole    2,326        

or part of a codified or uncodified section of law contained in    2,327        

this act, or if any application of any item of law that            2,328        

constitutes the whole or part of a codified or uncodified section  2,330        

of law contained in this act, is held invalid, the invalidity      2,331        

does not affect other items of law or applications of items of     2,332        

law that can be given effect without the invalid item of law or    2,333        

application.  To this end, the items of law of which the codified  2,334        

and uncodified sections contained in this act are composed, and    2,335        

                                                          55     

                                                                 
their applications, are independent and severable.                              

      Section 10.  Except as otherwise specifically provided in    2,337        

this act, the codified and uncodified sections of law contained    2,338        

in this act, and the items of law of which the codified and        2,339        

uncodified sections of law contained in this act are composed,     2,340        

are not subject to the referendum.  Therefore, under Ohio          2,341        

Constitution, Article II, Section 1d and section 1.471 of the      2,342        

Revised Code, the codified and uncodified sections of law          2,343        

contained in this act, and the items of law of which the codified  2,345        

and uncodified sections of law contained in this act are           2,346        

composed, except as otherwise specifically provided in this act,   2,347        

go into immediate effect when this act becomes law.                             

      Section 11.  Sections 2317.45, 4121.12, 4121.121, 4121.125,  2,349        

4123.511, and 4123.512 of the Revised Code, as amended or enacted  2,350        

by this act, and the items of law of which such sections, as       2,352        

amended or enacted by this act, are composed, are subject to the   2,353        

referendum.  Therefore, under Ohio Constitution, Article II,       2,354        

Section 1c and section 1.471 of the Revised Code, such sections    2,355        

as amended or enacted by this act, and the items of law of which   2,356        

such sections as amended or enacted by this act are composed,      2,357        

take effect on the ninety-first day after this act is filed with   2,358        

the Secretary of State.  If, however, a referendum petition is     2,359        

filed against any such section as amended or enacted by this act,  2,360        

or against any item of law of which any such section as amended    2,361        

or enacted by this act is composed, the section as amended or      2,362        

enacted, or item of law, unless rejected at the referendum, takes  2,363        

effect at the earliest time permitted by law.                      2,364        

      Section 12.  That Sections 3 and 6 of Am. Sub. S.B. 45 of    2,366        

the 122nd General Assembly be amended to read as follows:          2,368        

      "Sec. 3.  (A)  Except as provided in division (B) of this    2,370        

section, the provisions of this act AM. SUB. S. B. 45 OF THE       2,372        

122nd GENERAL ASSEMBLY apply to all claims pursuant to Chapters    2,374        

4121., 4123., 4127., and 4131. of the Revised Code arising on and  2,375        

after the effective date of this act JULY 22, 1997.                2,376        

                                                          56     

                                                                 
      (B)  The following apply to all claims pursuant to Chapters  2,378        

4121., 4123., 4127., and 4131. of the Revised Code pending on the  2,379        

effective date of this act JULY 22, 1997:                          2,380        

      (1)  The provision in division (B)(1) of section 4123.56 of  2,382        

the Revised Code, as amended by this act AM. SUB. S.B. 45 OF THE   2,384        

122nd GENERAL ASSEMBLY, allowing an employer to voluntarily        2,386        

commence payment of compensation for temporary disability;         2,387        

      (2)  The provision in division (C)(2) of section 4123.56 of  2,389        

the Revised Code, as amended by this act AM. SUB. S.B. 45 OF THE   2,391        

122nd GENERAL ASSEMBLY, allowing an employee to file an            2,393        

application for and receive wage loss compensation pursuant to     2,394        

that division without affecting the employee's application for     2,395        

permanent total impairment compensation;                                        

      (3)  THE PROVISIONS OF SECTION 4123.65 OF THE REVISED CODE,  2,398        

AS AMENDED BY AM. SUB. S.B. 45 OF THE 122nd GENERAL ASSEMBLY.      2,399        

      (C)  The provision in division (A) of section 4123.57, as    2,401        

amended by this act, allowing an employee to file an application   2,403        

for the determination of the percentage of the employee's          2,404        

permanent partial impairment after the employee has reached        2,405        

maximum medical improvement AM. SUB. S.B. 45 OF THE 122nd GENERAL  2,406        

ASSEMBLY, APPLIES TO ALL CLAIMS PENDING ON JULY 1, 1998.           2,407        

      Sec. 6.  The Administrator of Workers' Compensation shall    2,410        

study the incidence of OCCURRENCE OF occupational diseases in the  2,411        

health care professions, LISTED IN SECTION 4123.68 OF THE REVISED  2,413        

CODE AND THE INCIDENCE OF OCCURRENCE OF OCCUPATIONAL DISEASES NOT  2,414        

SPECIFIED IN STATUTE as the Administrator determines necessary,    2,415        

TO DETERMINE THE FREQUENCY OF OCCURRENCE OF THOSE DISEASES,        2,416        

WHETHER ANY DISEASES SHOULD BE ADDED TO OR DELETED FROM THE        2,417        

SCHEDULE, and the adequacy of Chapters 4121., 4123., 4127., and    2,418        

4131. of the Revised Code in addressing ALL occupational diseases  2,419        

that arise in those professions.  The study shall specifically     2,420        

include latent occupational diseases.  The Administrator shall     2,421        

report the results of the study to the Speaker of the House of     2,422        

Representatives and the President of the Senate no later than      2,423        

                                                          57     

                                                                 
July 1, 1998."                                                     2,424        

      Section 13.  That existing Sections 3 and 6 of Am. Sub.      2,426        

S.B. 45 of the 122nd General Assembly are hereby repealed.         2,428        

      Section 14.  Section 4123.57 of the Revised Code is amended  2,433        

by this act and also by Am. Sub. S.B. 45 of the 122nd General      2,434        

Assembly, effective July 22, 1997.  The amendments of Am. Sub.     2,435        

S.B. 45 are included in this act to confirm the intention to       2,436        

retain them, but are not intended to be effective until July 22,   2,437        

1997.