As Introduced*                            1            

122nd General Assembly                                             4            

   Regular Session                                 H. B. No. 770   5            

      1997-1998                                                    6            


                     REPRESENTATIVE JOHNSON                        8            


                                                                   10           

                           A   B I L L                                          

             To amend sections 101.34, 101.70, 101.71, 101.72,     12           

                101.73, 101.74, 101.75, 101.77, 101.78, 101.79,    13           

                121.60, 121.61, 121.62, 121.63, 121.64, 121.65,                 

                121.68, 121.69, 126.14, 131.35, 133.06, 718.01,    14           

                3313.646, 3313.841, 3313.842, 3313.98, 3314.03,    15           

                3314.07, 3314.08, 3317.01, 3317.013, 3317.02,                   

                3317.021, 3317.022, 3317.023, 3317.024, 3317.029,  17           

                3317.0212, 3317.0213, 3317.0214, 3317.0215,                     

                3317.0216, 3317.03, 3317.05, 3317.051, 3317.06,    18           

                3317.082, 3317.10, 3317.11, 3317.161, 3317.19,     19           

                3318.06, 3318.08, 3318.10, 3323.091, 3323.12,                   

                3704.14, 3734.57, 3734.82, 4123.40, 4701.10,       20           

                4701.20, 4743.05, 4745.01, 5711.22, 5733.04,                    

                5733.05, 5733.057, 5733.0611, 5733.12, 5733.40,    21           

                5733.98, 5747.01, 5747.08, 5747.43, and 5747.98;   23           

                to enact sections 715.013, 3314.12, 3314.13,       24           

                3315.171, 3315.181, 3345.122, 4981.091, 5733.058,  25           

                5733.401, 5733.402, 5747.401, and 5907.15; and to  26           

                repeal section 5747.452 of the Revised Code; to    27           

                amend Section 50.11 of Am. Sub. H.B. 215 of the                 

                122nd General Assembly, as subsequently amended;   28           

                to amend Section 50.11 of Am. Sub. H.B. 215 of     29           

                the 122nd General Assembly, as subsequently                     

                amended, for the purpose of changing its number    30           

                to section 3317.162 of the Revised Code; to amend  31           

                Sections 20.05, 47.13, 58, 62.01, 67.08, 119,      32           

                190, and 210 of Am. Sub. H.B. 215 of the 122nd                  

                General Assembly; to amend Section 67.05 of Am.    34           

                                                          2      

                                                                 
                Sub. H.B. 215 of the 122nd General Assembly, as                 

                amended by Sub. H.B. 446 of the 122nd General      35           

                Assembly; to amend Sections 50, 50.07, 50.09,      36           

                50.10, 50.12, 50.13, 50.14, 50.24, and 50.52.10                 

                of Am. Sub. H.B. 215 of the 122nd General          37           

                Assembly, as amended by Am. Sub. H.B. 650 of the                

                122nd General Assembly; to amend Section 18 of     38           

                Am. Sub. H.B. 650 of the 122nd General Assembly;   39           

                and to amend Section 50.06 of Am. Sub. H.B. 215                 

                of the 122nd General Assembly, as amended by Am.   40           

                Sub. H.B. 182 and Am. Sub. H.B. 650 of the 122nd   41           

                General Assembly to correct, supplement, and                    

                modify certain authorizations and conditions       42           

                established for the operation and administration                

                of state programs, and to make appropriations for  43           

                the biennium ending June 30, 1999.                 44           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        46           

      Section 1.  That sections 101.34, 101.70, 101.71, 101.72,    48           

101.73, 101.74, 101.75, 101.77, 101.78, 101.79, 121.60, 121.61,    49           

121.62, 121.63, 121.64, 121.65, 121.68, 121.69, 126.14, 131.35,    51           

133.06, 718.01, 3313.646, 3313.841, 3313.842, 3313.98, 3314.03,    52           

3314.07, 3314.08, 3317.01, 3317.013, 3317.02, 3317.021, 3317.022,  53           

3317.023, 3317.024, 3317.029, 3317.0212, 3317.0213, 3317.0214,     54           

3317.0215, 3317.0216, 3317.03, 3317.05, 3317.051, 3317.06,         55           

3317.082, 3317.10, 3317.11, 3317.161, 3317.19, 3318.06, 3318.08,   56           

3318.10, 3323.091, 3323.12, 3704.14, 3734.57, 3734.82, 4123.40,    57           

4701.10, 4701.20, 4743.05, 4745.01, 5711.22, 5733.04, 5733.05,     58           

5733.057, 5733.0611, 5733.12, 5733.40, 5733.98, 5747.01, 5747.08,               

5747.43, and 5747.98 be amended and sections 715.013, 3314.12,     61           

3314.13, 3315.171, 3315.181, 3345.122, 4981.091, 5733.058,         62           

5733.401, 5733.402, 5747.401, and 5907.15 of the Revised Code be   63           

enacted and that Section 50.11 of Am. Sub. H.B. 215 of the 122nd   64           

General Assembly, as most recently amended by Am. Sub. H.B. 650                 

                                                          3      

                                                                 
of the 122nd General Assembly, be amended and renumbered as        65           

section 3317.162 of the Revised Code to read as follows:           66           

      Sec. 101.34.  (A)  There is hereby created a joint           75           

legislative ethics committee to serve the general assembly.  The   76           

committee shall be composed of twelve members, six each from the   77           

two major political parties, and each member shall serve on the    78           

committee during the member's term as a member of that general     80           

assembly.  Six members of the committee shall be members of the                 

house of representatives appointed by the speaker of the house of  81           

representatives, not more than three from the same political       82           

party, and six members of the committee shall be members of the    83           

senate appointed by the president of the senate, not more than     84           

three from the same political party.  A vacancy in the committee   85           

shall be filled for the unexpired term in the same manner as an    86           

original appointment.  The members of the committee shall be       87           

appointed within fifteen days after the first day of the first     88           

regular session of each general assembly and the committee shall   89           

meet and proceed to recommend an ethics code not later than        90           

thirty days after the first day of the first regular session of    91           

each general assembly.                                             92           

      In the first regular session of each general assembly, the   94           

speaker of the house of representatives shall appoint the          95           

chairperson of the committee from among the house members of the   97           

committee and the president of the senate shall appoint the                     

vice-chairperson of the committee from among the senate members    99           

of the committee.  In the second regular session of each general   100          

assembly, the president of the senate shall appoint the            101          

chairperson of the committee from among the senate members of the  102          

committee and the speaker of the house of representatives shall    103          

appoint the vice-chairperson of the committee from among the       104          

house members of the committee.  The chairperson,                  105          

vice-chairperson, and members of the committee shall serve until   107          

their respective successors are appointed or until they are no     108          

longer members of the general assembly.                            109          

                                                          4      

                                                                 
      The committee shall meet at the call of the chairperson or   112          

upon the written request of seven members of the committee.        113          

      (B)  The joint legislative ethics committee:                 115          

      (1)  Shall recommend a code of ethics which is consistent    117          

with law to govern all members and employees of each house of the  118          

general assembly and all candidates for the office of member of    119          

each house;                                                        120          

      (2)  May receive and hear any complaint which alleges a      122          

breach of any privilege of either house, or misconduct of any      123          

member, employee, or candidate, or any violation of CHAPTER 102.   124          

OR SECTION 2921.42 OR 2921.43 OF THE REVISED CODE OR the           125          

appropriate LEGISLATIVE code of ethics;                            126          

      (3)  May obtain information with respect to any complaint    128          

filed pursuant to this section and to that end may enforce the     129          

attendance and testimony of witnesses, and the production of       130          

books and papers;                                                  131          

      (4)  May recommend whatever sanction is appropriate with     133          

respect to a particular member, employee, or candidate as will     134          

best maintain in the minds of the public a good opinion of the     135          

conduct and character of members and employees of the general      136          

assembly;                                                          137          

      (5)  May recommend legislation to the general assembly       139          

relating to the conduct and ethics of members and employees of     140          

and candidates for the general assembly;                           141          

      (6)  Shall employ an executive director for the committee    143          

and may employ such other staff as the committee determines        144          

necessary to assist it in exercising its powers and duties.  The   145          

executive director and staff of the committee shall be known as    146          

the office of legislative inspector general.  At least one member  147          

of the staff of the committee shall be an attorney at law          148          

licensed to practice law in this state.  The appointment and       149          

removal of the executive director shall require the approval of    150          

at least eight members of the committee.                           151          

      (7)  May employ a special counsel to assist the committee    153          

                                                          5      

                                                                 
in exercising its powers and duties.  The appointment and removal  154          

of a special counsel shall require the approval of at least eight  155          

members of the committee.                                          156          

      (8)  Shall act as an advisory body to the general assembly   158          

and to individual members, candidates, and employees on questions  159          

relating to ETHICS, possible conflicts of interest, AND FINANCIAL  161          

DISCLOSURE;                                                                     

      (9)  Shall provide for the proper forms on which the         163          

statement required pursuant to section 102.02 of the Revised Code  164          

shall be filed and instructions as to the filing of the            165          

statement;                                                         166          

      (10)  Exercise the powers and duties prescribed under IN     168          

sections 101.70 to 101.79 and 121.60 to 121.69 of the Revised      169          

Code;                                                              170          

      (11)  Adopt in accordance with section 111.15 of the         172          

Revised Code any rules that are necessary to implement and         173          

clarify Chapter 102. and sections 2921.42 and 2921.43 of the       174          

Revised Code.                                                      175          

      (C)  There is hereby created in the state treasury the       177          

joint legislative ethics committee fund.  All money collected      179          

from registration fees prescribed under sections 101.72 and        181          

121.62 of the Revised Code shall be deposited into the state       182          

treasury to the credit of the fund.  Money credited to the fund    183          

and any interest and earnings from the fund shall be used solely   184          

for the operation of the joint legislative ethics committee and    185          

the office of legislative inspector general and for the purchase   186          

of data storage and computerization facilities for the statements  187          

filed with the joint committee under sections 101.73, 101.74,      188          

121.63, and 121.64 of the Revised Code.                            189          

      (D)  The chairperson of the joint committee shall issue a    192          

written report, not later than the thirty-first day of January of               

each year, to the speaker and minority leader of the house of      193          

representatives and to the president and minority leader of the    194          

senate that lists the number of committee meetings and             195          

                                                          6      

                                                                 
investigations the committee conducted during the immediately      196          

preceding calendar year and the number of advisory opinions it     197          

issued during the immediately preceding calendar year.             198          

      (E)  Any investigative report that contains facts and        200          

findings regarding a complaint filed with the committee and that   201          

is prepared by the staff of the committee or a special counsel to  202          

the committee shall become a public record upon its acceptance by  203          

a vote of the majority of the members of the committee, except     204          

for any names of specific individuals and entities contained in    205          

the report.  If the committee recommends disciplinary action or    206          

reports its findings to the appropriate prosecuting authority for  207          

proceedings in prosecution of the violations alleged in the        208          

complaint, the investigatory report regarding the complaint shall  209          

become a public record in its entirety.                            210          

      (F)(1)  Any file obtained by or in the possession of the     212          

former house ethics committee or former senate ethics committee    213          

shall become the property of the joint legislative ethics          214          

committee.  Any such file is confidential if either of the         215          

following applies:                                                              

      (a)  It is confidential under section 102.06 of the Revised  217          

Code or the legislative code of ethics.                            218          

      (b)  If the file was obtained from the former house ethics   220          

committee or from the former senate ethics committee, it was       221          

confidential under any statute or any provision of a code of       222          

ethics that governed the file.                                                  

      (2)  As used in this division, "file" includes, but is not   224          

limited to, evidence, documentation, or any other tangible thing.  225          

      (G)  THE OFFICE OF LEGISLATIVE INSPECTOR GENERAL SHALL       227          

EXERCISE THE POWERS AND DUTIES PRESCRIBED TO THE OFFICE IN         228          

SECTIONS 101.70 TO 101.79 AND SECTIONS 121.60 TO 121.69 OF THE     230          

REVISED CODE.                                                                   

      Sec. 101.70.  As used in sections 101.70 to 101.79 and       239          

101.99 of the Revised Code:                                        240          

      (A)  "Person" means any individual, partnership, trust,      242          

                                                          7      

                                                                 
estate, business trust, association, or corporation; any labor     243          

organization or manufacturer association; any department,          244          

commission, board, publicly supported college or university,       245          

division, institution, bureau, or other instrumentality of the     246          

state; or any county, township, municipal corporation, school      247          

district, or other political subdivision of the state.             248          

      (B)  "Legislation" means bills, resolutions, amendments,     250          

nominations, and any other matter PROPOSED FOR CONSIDERATION OR    251          

pending before the general assembly, any matter pending before     253          

the controlling board, or the executive approval or veto of any    254          

bill acted upon by the general assembly.                           255          

      (C)  "Compensation" means a salary, gift, payment, benefit,  257          

subscription, loan, advance, reimbursement, or deposit of money    258          

or anything of value; or a contract, promise, or agreement,        259          

whether or not legally enforceable, to make compensation.          260          

      (D)(1)  "Expenditure" means any of the following that is     262          

made to, at the request of, for the benefit of, or on behalf of    263          

any member of the general assembly, any member of the controlling  264          

board, the governor, the director of a department created under    265          

section 121.02 of the Revised Code, or any member of the staff of  266          

any public officer or employee listed in this division:            267          

      (1)(a)  A payment, distribution, loan, advance, deposit,     269          

reimbursement, or gift of money, real estate, or anything of       270          

value, including, but not limited to, food and beverages,          271          

entertainment, lodging, or transportation;                         272          

      (2)(b)  A contract, promise, or agreement to make an         274          

expenditure, whether or not legally enforceable;                   275          

      (3)(c)  The purchase, sale, or gift of services or any       277          

other thing of value.                                              278          

"Expenditure                                                       280          

      (2)  "EXPENDITURE" does not include a ANY OF THE FOLLOWING:  284          

      (a)  A contribution, gift, or grant to a foundation or       287          

other charitable organization that is exempt from federal income   288          

taxation under subsection 501(c)(3) of the Internal Revenue Code.  289          

                                                          8      

                                                                 
"Expenditure" does not include the;                                             

      (b)  THE purchase, sale, or gift of services or any other    291          

thing of value that is available to the general public on the      293          

same terms as it is available to the persons listed in this        294          

division, or an offer or sale of securities to any person listed   295          

in this division that is governed by regulation D, 17 C.F.R.       296          

2301.501 to 2301.508, adopted under the authority of the           297          

"Securities Act of 1933," 48 Stat. 74, 15 U.S.C.A. and following,  298          

or that is governed by a comparable provision under state law.;    299          

      (c)  A CONTRIBUTION AS DEFINED IN SECTION 3517.01 OF THE     302          

REVISED CODE;                                                                   

      (d)  AMOUNTS SPENT FOR TRADE, INDUSTRY, GOVERNMENT, OR       305          

PROFESSIONAL ASSOCIATION PUBLICATIONS;                                          

      (e)  AMOUNTS SPENT FOR PROMOTIONAL MATERIALS OR ITEMS        309          

VALUED AT LESS THAN TWENTY-FIVE DOLLARS;                           310          

      (f)  AMOUNTS SPENT FOR MEALS AND OTHER FOOD AND BEVERAGES    313          

PROVIDED TO ANY PARTICULAR MEMBER OF THE GENERAL ASSEMBLY, ANY     314          

PARTICULAR MEMBER OF THE CONTROLLING BOARD, THE GOVERNOR, THE                   

DIRECTOR OF A DEPARTMENT CREATED UNDER SECTION 121.02 OF THE       315          

REVISED CODE, OR ANY PARTICULAR MEMBER OF THE STAFF OF ANY OF THE  316          

PUBLIC OFFICERS OR EMPLOYEES LISTED IN DIVISION (D)(2)(f) OF THIS  318          

SECTION AT A MEETING AT WHICH THE PUBLIC OFFICER OR EMPLOYEE       319          

PARTICIPATED IN A SEMINAR, PANEL, OR SPEAKING ENGAGEMENT OR        321          

PROVIDED TO THE PUBLIC OFFICER OR EMPLOYEE AT A MEETING OR                      

CONVENTION OF A NATIONAL ORGANIZATION TO WHICH THE PUBLIC          323          

EMPLOYER OF THE PUBLIC OFFICER OR PUBLIC EMPLOYEE PAYS MEMBERSHIP  326          

DUES.                                                                           

      (E)  "Actively advocate" means to promote, advocate, or      328          

oppose the INTRODUCTION, passage, modification, defeat, or         329          

executive approval or veto of any legislation by direct            331          

communication with any member of the general assembly, any member  332          

of the controlling board, the governor, the director of any        333          

department listed in section 121.02 of the Revised Code, or any    334          

member of the staff of any public officer or employee listed in    335          

                                                          9      

                                                                 
this division. "Actively advocate" does not include the action of  337          

any person not engaged by an employer who has a direct interest    338          

in legislation if the person, acting under Section 3 of Article    339          

I, Ohio Constitution, assembles together with other persons to     340          

consult for their common good, instructs a public officer or       341          

employee who is listed in this division, or petitions that public  342          

officer or employee for the redress of grievances.                 343          

      (F)  "Legislative agent" means any individual, except a      345          

member of the general assembly, a member of the staff of the       346          

general assembly, the governor, lieutenant governor, attorney      347          

general, secretary of state, treasurer of state, or auditor of     348          

state, OR ANY OTHER ELECTED OFFICIAL WHO ATTEMPTS TO INFLUENCE OR  349          

AFFECT LEGISLATION IN THE PERFORMANCE OF THE INDIVIDUAL'S          350          

OFFICIAL DUTIES, who is engaged during at least a SIGNIFICANT      351          

portion of his THE INDIVIDUAL'S time to actively advocate as one   353          

of his main purposes.                                                           

      (G)  "Employer" means any person who, directly or            355          

indirectly, engages a legislative agent.                           356          

      (H)  "Engage" means to make any arrangement, and             358          

"engagement" means any arrangement, whereby an individual is       359          

employed or retained for compensation to act for or on behalf of   362          

an employer to actively advocate.                                  363          

      (I)  "Financial transaction" means a transaction or          365          

activity that is conducted or undertaken for profit and arises     366          

from the joint ownership or the ownership or part ownership in     367          

common of any real or personal property or any commercial or       368          

business enterprise of whatever form or nature between the         369          

following:                                                         370          

      (1)  A legislative agent, his AN employer OF A LEGISLATIVE   372          

AGENT, or a member of the immediate family of the legislative      373          

agent or his A LEGISLATIVE AGENT'S employer; and                   374          

      (2)  Any member of the general assembly, any member of the   376          

controlling board, the governor, the director of a department      377          

created under section 121.02 of the Revised Code, or any member    378          

                                                          10     

                                                                 
of the staff of a public officer or employee listed in division    379          

(I)(2) of this section.                                            380          

      "Financial transaction" does not include any transaction or  382          

activity described in division (I) of this section if it is        383          

available to the general public on the same terms, or if it is an  384          

offer or sale of securities to any person listed in division       385          

(I)(2) of this section that is governed by regulation D, 17        386          

C.F.R. 2301.501 to 2301.508, adopted under the authority of the    387          

"Securities Act of 1933," 48 Stat. 74, 15 U.S.C.A. and following,  388          

or that is governed by a comparable provision under state law.     389          

      (J)  "Staff" means any state employee whose official duties  391          

are to formulate policy and, who exercises administrative or       392          

supervisory authority or who authorizes the expenditure of state   393          

funds, AND WHO IS REQUIRED TO FILE A FINANCIAL DISCLOSURE          394          

STATEMENT UNDER SECTION 102.02 OF THE REVISED CODE.                395          

      Sec. 101.71.  (A)  No legislative agent or employer shall    404          

knowingly fail to register as required under section 101.72 of     405          

the Revised Code AND NO PERSON SHALL KNOWINGLY ACT AS A            406          

LEGISLATIVE AGENT OR EMPLOYER WHILE THE PERSON'S REGISTRATION IS   408          

SUSPENDED UNDER DIVISION (F) OF SECTION 101.72 OF THE REVISED      409          

CODE.                                                                           

      (B)  No legislative agent or employer shall knowingly fail   411          

to keep a receipt or maintain a record that section 101.73 of the  412          

Revised Code requires the person to keep or maintain.              413          

      (C)  No person shall knowingly fail to file a statement      415          

that section 101.73 or 101.74 of the Revised Code requires the     416          

person to file.                                                                 

      (D)  No person shall knowingly file a false statement that   418          

section 101.73 or 101.74 of the Revised Code requires the person   419          

to file.                                                                        

      Sec. 101.72.  (A)  Each legislative agent and employer,      428          

within ten days following an engagement of a legislative agent,    429          

shall file with the joint OFFICE OF legislative ethics committee   431          

INSPECTOR GENERAL an initial registration statement showing all    432          

                                                          11     

                                                                 
of the following:                                                               

      (1)  The name, business address, and occupation of the       434          

legislative agent;                                                 435          

      (2)  The name and business address of the employer and the   437          

real party in interest on whose behalf the legislative agent is    438          

actively advocating, if it is different from the employer.  For    439          

the purposes of division (A) of this section, where a trade        440          

association or other charitable or fraternal organization that is  441          

exempt from federal income taxation under subsection 501(c) of     442          

the federal Internal Revenue Code is the employer, the statement   443          

need not list the names and addresses of each member of the        444          

association or organization, so long as the association or         445          

organization itself is listed.                                     446          

      (3)  A brief description of the type of legislation to       448          

which the engagement relates.                                      449          

      (B)  In addition to the initial registration statement       451          

required by division (A) of this section, each legislative agent   452          

and employer shall file with the joint committee OFFICE, not       453          

later than the last day of January, May, and September JULY of     456          

each year, an updated registration statement that confirms the     458          

continuing existence of each engagement described in an initial    459          

registration statement and that lists the specific bills or        460          

resolutions on which the LEGISLATIVE agent actively advocated                   

under that engagement during the period covered by the updated     462          

statement, and with it any statement of expenditures required to   463          

be filed by section 101.73 of the Revised Code and any details of  464          

financial transactions required to be filed by section 101.74 of   465          

the Revised Code.                                                  466          

      (C)  If a legislative agent is engaged by more than one      468          

employer, the agent shall file a separate initial and updated      469          

registration statement for each engagement.  If an employer        470          

engages more than one legislative agent, the employer need file    471          

only one updated registration statement under division (B) of      472          

this section, which shall contain the information required by      473          

                                                          12     

                                                                 
division (B) of this section regarding all of the legislative      474          

agents engaged by the employer.                                    475          

      (D)(1)  A change in any information required by division     477          

(A)(1), (2), or (B) of this section shall be reflected in the      478          

next updated registration statement filed under division (B) of    479          

this section.                                                      480          

      (2)  Within thirty days after the termination of an          482          

engagement, the legislative agent who was employed under the       483          

engagement shall send written notification of the termination to   484          

the joint committee OFFICE.                                        485          

      (E)  Except as otherwise provided in this division, a        487          

registration fee of ten dollars shall be charged for filing an     488          

initial registration statement.  All money collected from this     489          

registration fee shall be deposited to the credit of the joint     490          

legislative ethics committee fund created under section 101.34 of  492          

the Revised Code.  An officer or employee of a state agency who    494          

actively advocates in a fiduciary capacity as a representative of  495          

that state agency need not pay the registration fee prescribed by  496          

this division or file expenditure statements under section 101.73  498          

of the Revised Code.  As used in this division, "state agency"     499          

does not include a state institution of higher education as        500          

defined in section 3345.011 of the Revised Code.                   501          

      (F)  Upon registration pursuant to division (A) of this      503          

section, the legislative agent shall be issued a card by the       504          

joint committee OFFICE showing that the legislative agent is       505          

registered. The registration card and the legislative agent's      507          

registration shall be valid from the date of their issuance until  508          

the next thirty-first day of December of an even-numbered year     509          

UNLESS THE LEGISLATIVE AGENT'S REGISTRATION IS SUSPENDED UNDER     510          

THIS DIVISION.                                                                  

      ANY PERSON FOUND GUILTY OF TWO OR MORE VIOLATIONS OF         512          

DIVISION (A), (B), (C), OR (D) OF SECTION 101.71, OR OF SECTION    513          

2921.02 OR 2921.13, OF THE REVISED CODE IS PROHIBITED THEREAFTER   514          

FROM REGISTERING AS A LEGISLATIVE AGENT OR AN EMPLOYER OF A        515          

                                                          13     

                                                                 
LEGISLATIVE AGENT, AND ANY EXISTING REGISTRATION OF THAT PERSON    516          

IS REVOKED.  ANY PERSON ASSESSED THE MAXIMUM LATE FILING FEE       517          

UNDER DIVISION (G) OF THIS SECTION FOR TWO SUCCESSIVE SIX-MONTH    518          

REPORTING PERIODS IS PROHIBITED FROM REGISTERING AS A LEGISLATIVE               

AGENT OR EMPLOYER OF A LEGISLATIVE AGENT FOR SIX MONTHS, AND ANY   519          

EXISTING REGISTRATION OF THAT PERSON IS SUSPENDED FOR SIX MONTHS.  520          

      (G)  The executive director of the joint committee OFFICE    522          

shall be responsible for reviewing each registration statement     524          

filed with the joint committee OFFICE under this section and for   525          

determining whether the statement contains all of the information  527          

required by this section.  If the joint committee OFFICE           528          

determines that the registration statement does not contain all    530          

of the required information or that a legislative agent or         531          

employer has failed to file a registration statement, the joint    532          

committee OFFICE shall send written notification by certified      534          

mail to the person who filed the registration statement regarding  535          

the deficiency in the statement or to the person who failed to     536          

file the registration statement regarding the failure.  Any        537          

person so notified by the joint committee OFFICE shall, not later  538          

than fifteen days after receiving the notice, file a registration  539          

statement or an amended registration statement that does contain   540          

all of the information required by this section.  If any person    541          

who receives a notice under this division fails to file a          542          

registration statement or such an amended registration statement   543          

within this fifteen-day period, the joint committee OFFICE shall   544          

notify the attorney general, who may take appropriate action as    546          

authorized under section 101.79 of the Revised Code.  If the       547          

joint committee notifies the attorney general under this           548          

division, the joint committee shall also notify in writing the     549          

governor and each member of the general assembly of the pending    550          

investigation ASSESS A LATE FILING FEE OF TWENTY-FIVE DOLLARS PER  551          

DAY, UP TO A MAXIMUM OF TWO HUNDRED FIFTY DOLLARS, UPON THAT       552          

PERSON.  IF ANY PERSON ASSESSED THE MAXIMUM                                     

TWO-HUNDRED-FIFTY-DOLLAR LATE FEE UNDER THIS DIVISION STILL FAILS  553          

                                                          14     

                                                                 
TO FILE A REGISTRATION STATEMENT OR AN AMENDED REGISTRATION        554          

STATEMENT, THE OFFICE MAY REFER THE MATTER TO APPROPRIATE          555          

PROSECUTING AUTHORITY.                                                          

      (H)  On or before the fifteenth day of March of each year,   557          

the joint committee OFFICE shall, in the manner and form that it   559          

determines, publish a report containing statistical information                 

on the registration statements filed with it under this section    560          

during the preceding year.                                         561          

      Sec. 101.73.  (A)  Each legislative agent and each employer  570          

shall file in the office of the joint legislative ethics           571          

committee INSPECTOR GENERAL, with the updated registration         572          

statement required by division (B) of section 101.72 of the        574          

Revised Code, a statement of expenditures as specified in          575          

divisions (B) and (C) of this section.  A legislative agent shall  576          

file a separate statement of expenditures under this section for   577          

each employer engaging him THE LEGISLATIVE AGENT.                  578          

      (B)(1)  In addition to the information required by           580          

divisions (B)(2) and (3) of this section, a statement filed by a   582          

legislative agent shall show the total amount of expenditures      583          

made by the legislative agent during the reporting period covered  584          

by the statement.                                                  585          

      (2)  If, during a reporting period covered by a statement,   587          

an employer or any legislative agent he engaged made, either       589          

separately or in combination with each other, either directly or   591          

indirectly, expenditures to, at the request of, for the benefit    593          

of, or on behalf of any particular member of the general                        

assembly, any particular member of the controlling board, the      594          

governor, the director of a department created under section       595          

121.02 of the Revised Code, or any particular member of the staff  596          

of any of the public officers or employees listed in division      597          

(B)(2) of this section, then the employer or legislative agent     598          

shall also state all of the following:                             599          

      (a)  The name of the public officer or employee to whom, at  601          

whose request, for whose benefit, or on whose behalf the           602          

                                                          15     

                                                                 
expenditures were made;                                            603          

      (b)  The total amount of the expenditures made;              605          

      (c)  A brief description of the expenditures made;           607          

      (d)  The approximate date the expenditures were made;        609          

      (e)  The specific items of legislation, if any, for which    611          

the expenditures were made and the identity of the client on       612          

whose behalf each expenditure was made.                            613          

      As used in division (B)(2) of this section, "expenditures"   615          

does not include expenditures made by a legislative agent as       616          

payment for meals and other food and beverages.                    617          

      (3)  If, during a reporting period covered by a statement,   619          

a legislative agent made expenditures as payment for meals and     621          

other food and beverages, other than for meals and other food and  623          

beverages provided to a member of the general assembly at a        624          

meeting at which the member participated in a panel, seminar, or   625          

speaking engagement or provided to a member of the general         626          

assembly at a meeting or convention of a national organization to  627          

which either house of the general assembly, any legislative                     

agency, or any other state agency pays membership dues, that,      628          

when added to the amount of previous payments made for meals and   629          

other food and beverages by that legislative agent during that     630          

same calendar year, exceeded a total of fifty dollars to, at the   632          

request of, for the benefit of, or on behalf of any particular     633          

member of the general assembly, any particular member of the       634          

controlling board, the governor, the director of a department      635          

created under section 121.02 of the Revised Code, or any           636          

particular member of the staff of any of the public officers or    637          

employees listed in division (B)(3) of this section, then the                   

legislative agent shall also state all of the following regarding  639          

those expenditures:                                                             

      (a)  The name of the public officer or employee to whom, at  641          

whose request, for whose benefit, or on whose behalf the           642          

expenditures were made;                                            643          

      (b)  The total amount of the expenditures made;              645          

                                                          16     

                                                                 
      (c)  A brief description of the expenditures made;           647          

      (d)  The approximate date the expenditures were made;        649          

      (e)  The specific items of legislation, if any, for which    651          

the expenditures were made and the identity of the client on       652          

whose behalf each expenditure was made.                            653          

      (C)(1)  In addition to the information required by           655          

divisions (B)(C)(2) and (3) of this section, a statement filed by  658          

an employer shall show the total amount of expenditures made by    659          

the employer filing the statement during the period covered by     660          

the statement.  As used in this section, "expenditures" does not   661          

include the expenses of maintaining office facilities or the       663          

compensation paid to legislative agents engaged by an employer.    665          

      (2)  IF, DURING A REPORTING PERIOD COVERED BY A STATEMENT,   667          

AN EMPLOYER MADE, EITHER DIRECTLY OR INDIRECTLY, EXPENDITURES TO,  669          

AT THE REQUEST OF, FOR THE BENEFIT OF, OR ON BEHALF OF ANY         670          

PARTICULAR MEMBER OF THE GENERAL ASSEMBLY, ANY PARTICULAR MEMBER   671          

OF THE CONTROLLING BOARD, THE GOVERNOR, THE DIRECTOR OF A          672          

DEPARTMENT CREATED UNDER SECTION 121.02 OF THE REVISED CODE, OR    673          

ANY PARTICULAR MEMBER OF THE STAFF OF ANY OF THE PUBLIC OFFICERS   675          

OR EMPLOYEES LISTED IN DIVISION (C)(2) OF THIS SECTION, THEN THE   676          

EMPLOYER SHALL ALSO STATE ALL OF THE FOLLOWING:                    677          

      (a)  THE NAME OF THE PUBLIC OFFICER OR EMPLOYEE TO WHOM, AT  679          

WHOSE REQUEST, FOR WHOSE BENEFIT, OR ON WHOSE BEHALF THE           680          

EXPENDITURES WERE MADE;                                            681          

      (b)  THE TOTAL AMOUNT OF THE EXPENDITURES MADE;              683          

      (c)  A BRIEF DESCRIPTION OF THE EXPENDITURES MADE;           685          

      (d)  THE APPROXIMATE DATE THE EXPENDITURES WERE MADE;        687          

      (e)  THE SPECIFIC ITEMS OF LEGISLATION, IF ANY, FOR WHICH    689          

THE EXPENDITURES WERE MADE.                                        690          

      AS USED IN DIVISION (C)(2) OF THIS SECTION, "EXPENDITURES"   692          

DOES NOT INCLUDE EXPENDITURES MADE BY AN EMPLOYER AS PAYMENT FOR   693          

MEALS AND OTHER FOOD AND BEVERAGES.                                694          

      (3)  IF, DURING A REPORTING PERIOD COVERED BY A STATEMENT,   696          

AN EMPLOYER MADE EITHER DIRECTLY OR INDIRECTLY EXPENDITURES AS     697          

                                                          17     

                                                                 
PAYMENT FOR MEALS AND OTHER FOOD AND BEVERAGES TO, AT THE REQUEST  701          

OF, FOR THE BENEFIT OF, OR ON BEHALF OF ANY PARTICULAR MEMBER OF   702          

THE GENERAL ASSEMBLY, ANY PARTICULAR MEMBER OF THE CONTROLLING     703          

BOARD, THE GOVERNOR, THE DIRECTOR OF A DEPARTMENT CREATED UNDER    704          

SECTION 121.02 OF THE REVISED CODE, OR ANY PARTICULAR MEMBER OF    705          

THE STAFF OF ANY OF THE PUBLIC OFFICERS OR EMPLOYEES LISTED IN     706          

DIVISION (C)(3) OF THIS SECTION, THEN THE EMPLOYER SHALL ALSO      707          

STATE ALL OF THE FOLLOWING REGARDING THOSE EXPENDITURES:           708          

      (a)  THE NAME OF THE PUBLIC OFFICER OR EMPLOYEE TO WHOM, AT  710          

WHOSE REQUEST, FOR WHOSE BENEFIT, OR ON WHOSE BEHALF THE           711          

EXPENDITURES WERE MADE;                                            712          

      (b)  THE TOTAL AMOUNT OF THE EXPENDITURES MADE;              714          

      (c)  A BRIEF DESCRIPTION OF THE EXPENDITURES MADE;           716          

      (d)  THE APPROXIMATE DATE THE EXPENDITURES WERE MADE;        718          

      (e)  THE SPECIFIC ITEMS OF LEGISLATION, IF ANY, FOR WHICH    720          

THE EXPENDITURES WERE MADE AND ON WHOSE BEHALF EACH EXPENDITURE    722          

WAS MADE.                                                                       

      (4)  No employer is required to show any expenditure on a    724          

statement filed under this division if the expenditure is          725          

reported on a statement filed under division (B) of this section   726          

by a legislative agent engaged by the employer.                    727          

      (D)  Any statement required to be filed under this section   730          

shall be filed at the times specified in section 101.72 of the     731          

Revised Code.  Each statement shall cover expenditures made        732          

during the four-calendar-month SIX-CALENDAR-MONTH period that      733          

ended on the last day of the month immediately preceding the       735          

month in which the statement is required to be filed.              736          

      No portion of the amount of an expenditure for a dinner,     738          

party, or other SIMILAR function sponsored by an employer or       739          

legislative agent need be attributed to, or counted toward the     741          

amount for, a reporting period specified in division (B)(2) or     742          

(3) OR (C)(2) OR (3) of this section if the sponsor has invited    744          

to the function all the members of either of the following:        745          

      (1)  The general assembly;                                   747          

                                                          18     

                                                                 
      (2)  Either house of the general assembly.                   749          

      However, the amount spent for such function and its date     751          

and purpose shall be reported separately on the statement          752          

required to be filed under this section and the amount spent for   753          

the function shall be added with other expenditures for the        754          

purpose of determining the total amount of expenditures reported   755          

in the statement under division (B)(1) or (C)(1) of this section.  756          

      If it is impractical or impossible for a legislative agent   758          

or employer to determine exact dollar amounts or values of         759          

expenditures, reporting of good faith estimates, based upon        760          

reasonable accounting procedures, constitutes compliance with      761          

this section.                                                      762          

      (E)  All legislative agents and employers shall retain       764          

receipts or maintain records for all expenditures that are         765          

required to be reported pursuant to this section.  These receipts  766          

or records shall be maintained for a period ending on the          767          

thirty-first day of December of the second calendar year after     768          

the year in which the expenditure was made.                        769          

      (F)(1)  An employer or legislative agent who is required to  771          

file an expenditure statement under division (B) or (C) of this    773          

section shall deliver a copy of the statement, or of the portion   774          

showing the expenditure, to the public officer or employee who is  775          

listed in the statement as having received the expenditure or on   776          

whose behalf it was made, at least ten days before the date on     777          

which the statement is filed.                                                   

      (2)  If, during a reporting period covered by an             779          

expenditure statement filed under division (B)(2) of this          781          

section, an employer or any legislative agent he engaged made,     783          

either separately or in combination with each other, either                     

directly or indirectly, expenditures for transportation, lodging,  784          

or food and beverages purchased for consumption on the premises    785          

in which the food and beverages were sold to, at the request of,   786          

for the benefit of, or on behalf of any of the public officers or  788          

employees described in division (B)(2) of this section, the        789          

                                                          19     

                                                                 
employer or legislative agent shall deliver to the public officer  790          

or employee a statement that contains all of the nondisputed       791          

information prescribed in division (B)(2)(a) through (e) of this   792          

section with respect to the expenditures described in division     793          

(F)(2) of this section.  The statement of expenditures made under  794          

division (F)(2) of this section shall be delivered to the public   795          

officer or employee to whom, at whose request, for whose benefit,  796          

or on whose behalf those expenditures were made on the same day                 

in which a copy of the expenditure statement or of a portion       797          

showing the expenditure is delivered to the public officer or      798          

employee under division (F)(1) of this section.  An employer is    799          

not required to show any expenditure on a statement delivered      800          

under division (F)(2) of this section if the expenditure is shown  801          

on a statement delivered under division (F)(2) of this section by  802          

a legislative agent engaged by the employer.                                    

      Sec. 101.74.  (A)  Any legislative agent who has had any     811          

financial transaction with or for the benefit of any member of     812          

the general assembly, any member of the controlling board, the     813          

governor, the director of a department created under section       814          

121.02 of the Revised Code, or any member of the staff of any      815          

public officer or employee listed in this division shall describe  816          

the details of the transaction, including the name of the public   817          

officer or employee, the purpose and nature of the transaction,    818          

and the date it was made or entered into, in a statement filed     819          

with the OFFICE OF THE LEGISLATIVE INSPECTOR GENERAL AND, IF THE   820          

TRANSACTION WAS WITH OR FOR THE BENEFIT OF ANY MEMBER OF THE       821          

GENERAL ASSEMBLY OR ANY MEMBER OF THE STAFF OF A MEMBER OF THE     822          

GENERAL ASSEMBLY, FILED WITH THE joint legislative ethics          823          

committee TOGETHER with the updated registration statement         825          

required by division (B) of section 101.72 of the Revised Code.    826          

The statement shall be filed at the times specified in section     827          

101.72 of the Revised Code.  Each statement shall describe each    828          

financial transaction that occurred during the                     829          

four-calendar-month SIX-CALENDAR-MONTH period that ended on the    830          

                                                          20     

                                                                 
last day of the month immediately preceding the month in which     832          

the statement is required to be filed.                             833          

      (B)  Except as provided in division (D) of this section,     835          

any employer who has had any financial transaction with or for     836          

the benefit of any member of the general assembly, any member of   837          

the controlling board, the governor, the director of a department  838          

created under section 121.02 of the Revised Code, or any member    839          

of the staff of any public officer or employee listed in this      840          

division shall describe the details of the transaction, including  841          

the name of the public officer or employee, the purpose and        842          

nature of the transaction, and the date it was made or entered     843          

into, in a statement filed with the OFFICE OF THE LEGISLATIVE      844          

INSPECTOR GENERAL AND, IF THE TRANSACTION WAS WITH OR FOR THE      845          

BENEFIT OF ANY MEMBER OF THE GENERAL ASSEMBLY OR ANY MEMBER OF     846          

THE STAFF OF A MEMBER OF THE GENERAL ASSEMBLY, FILED WITH THE      847          

joint LEGISLATIVE ETHICS committee TOGETHER with the updated       849          

registration statement required by division (B) of section 101.72  851          

of the Revised Code.  The statement shall be filed at the times    852          

specified in section 101.72 of the Revised Code.  Each statement   853          

shall describe each financial transaction that occurred during     854          

the four-calendar-month SIX-CALENDAR-MONTH period that ended on    855          

the last day of the month immediately preceding the month in       857          

which the statement is required to be filed.                       858          

      (C)  An employer or legislative agent who is required to     860          

file a statement describing a financial transaction under this     861          

section shall deliver a copy of the statement to the public        862          

officer or employee with whom or for whose benefit the             863          

transaction was made at least ten days before the date on which    864          

the statement is filed.                                            865          

      (D)  No employer shall be required to file any statement     867          

under this section or to deliver a copy of the statement to a      868          

public officer or employee with whom or for whose benefit the      869          

transaction was made if the financial transaction to which the     870          

statement pertains is reported by a legislative agent engaged by   871          

                                                          21     

                                                                 
the employer.                                                      872          

      Sec. 101.75.  If a dispute arises between any member of the  881          

general assembly, any member of the controlling board, or a        882          

member of the staff of the general assembly or controlling board   883          

and an employer or legislative agent with respect to an            884          

expenditure or financial transaction alleged in any statement to   885          

be filed under section 101.73 or 101.74 of the Revised Code, the   886          

member, STAFF MEMBER, employer, or legislative agent may file a    887          

complaint with the joint legislative ethics committee. The         890          

committee shall proceed to investigate the complaint as provided   891          

for other complaints in section 101.34 of the Revised Code.        892          

      The complaint shall be filed at least three days prior to    894          

the time the statement is required to be filed with the joint      895          

legislative ethics committee.  The time for filing a disputed      896          

expenditure or financial transaction in any statement of           897          

expenditures or the details of a financial transaction shall be    898          

extended pending the final decision of the joint committee.  This  899          

extension does not extend the time for filing the nondisputed      900          

portions of an expenditure A statement OF EXPENDITURES or of the   902          

details of a financial transaction.  The joint committee shall     903          

notify the parties of its final decision by certified mail.  If    904          

the committee decides that the disputed expenditure or financial   905          

transaction should be reported, the employer or legislative agent  906          

shall include the matter in an amended statement and file the      907          

amended statement not later than ten days after the employer or    908          

agent receives notice of the decision of the committee by          909          

certified mail.                                                                 

      IF A DISPUTE ARISES BETWEEN THE GOVERNOR, THE DIRECTOR OF A  911          

DEPARTMENT CREATED UNDER SECTION 121.02 OF THE REVISED CODE, OR A  912          

MEMBER OF THE STAFF OF THE GOVERNOR, OR THE DIRECTOR OF A          913          

DEPARTMENT CREATED UNDER SECTION 121.02 OF THE REVISED CODE, AND                

AN EMPLOYER OR LEGISLATIVE AGENT WITH RESPECT TO AN EXPENDITURE    914          

OR FINANCIAL TRANSACTION ALLEGED IN ANY STATEMENT TO BE FILED      915          

UNDER SECTION 101.73 OR 101.74 OF THE REVISED CODE, THE GOVERNOR,  916          

                                                          22     

                                                                 
DEPARTMENT DIRECTOR, STAFF MEMBER, EMPLOYER, OR LEGISLATIVE AGENT  917          

MAY FILE A COMPLAINT PURSUANT TO SECTION 121.65 OF THE REVISED                  

CODE.  THE OFFICE OF LEGISLATIVE INSPECTOR GENERAL SHALL PROCEED   918          

TO INVESTIGATE THE COMPLAINT AS PROVIDED FOR OTHER COMPLAINTS IN   919          

SECTION 121.69 OF THE REVISED CODE.                                             

      An employer or legislative agent who files a false           921          

statement of expenditures or details of a financial transaction    922          

is liable in a civil action to any public officer or employee who  923          

sustains damage as a result of the filing or publication of the    924          

statement.                                                         925          

      Sec. 101.77.  No person shall engage any person to actively  934          

advocate in exchange for compensation that is contingent in any    935          

way upon the INTRODUCTION, passage, modification, or defeat of     936          

any legislation.  No person shall accept any engagement to         938          

actively advocate in exchange for compensation that is contingent  939          

in any way upon the INTRODUCTION, passage, modification, or        940          

defeat of any legislation.                                                      

      Sec. 101.78.  (A)  The joint OFFICE OF legislative ethics    949          

committee INSPECTOR GENERAL shall keep on file the statements      951          

required by sections 101.72, 101.73, and 101.74 of the Revised     952          

Code.  Those statements are public records and open to public      953          

inspection, and the joint committee OFFICE shall computerize them  954          

so that the information contained in them is readily accessible    955          

to the general public. The joint committee OFFICE shall provide    956          

copies of the statements to the general public upon request and    958          

may charge a reasonable fee not to exceed the cost of copying and  959          

delivering each statement.                                                      

      (B)  The joint committee OFFICE shall prescribe and make     961          

available an appropriate form for filing the information required  963          

by sections 101.72, 101.73, and 101.74 of the Revised Code.  The   964          

form shall contain the following notice in boldface type:  "ANY    965          

PERSON WHO KNOWINGLY FILES A FALSE STATEMENT IS GUILTY OF          966          

FALSIFICATION UNDER SECTION 2921.13 OF THE REVISED CODE, WHICH IS  967          

A MISDEMEANOR OF THE FIRST DEGREE."                                968          

                                                          23     

                                                                 
      (C)  The joint committee OFFICE shall publish a handbook     970          

that explains in clear and concise language sections 101.70 to     971          

101.79 and 101.99 of the Revised Code and make it available free   972          

of charge to members of the general assembly, legislative agents,  973          

employers, and any other interested persons.                       974          

      (D)  Not later than the last day of February and October of  976          

each year, the joint committee OFFICE shall compile from           977          

registration statements filed with it a complete and updated list  979          

of registered legislative agents and their employers and           980          

distribute the list to each member of the general assembly, each   981          

member of the controlling board who is not a member of the         982          

general assembly, and the governor.  The joint committee OFFICE    983          

shall provide copies of the list to the general public upon        985          

request and may charge a reasonable fee not to exceed the cost of  986          

copying and delivering the list.                                   987          

      (E)  The joint committee may adopt rules as necessary to     989          

implement sections 101.70 to 101.79 of the Revised Code, and any   991          

such rules it adopts shall be adopted in accordance with section   993          

111.15 of the Revised Code.                                                     

      Sec. 101.79.  (A)  The attorney GENERAL AND THE OFFICE OF    1,002        

LEGISLATIVE INSPECTOR general and any assistant or special         1,004        

counsel designated by him THE ATTORNEY GENERAL OR OFFICE may       1,005        

investigate compliance with sections 101.70 to 101.78 of the       1,007        

Revised Code, EXCEPT AS OTHERWISE PROVIDED IN SECTION 101.75 OF                 

THE REVISED CODE, and with section 2921.13 of the Revised Code in  1,009        

connection with statements required to be filed under these        1,010        

sections and, in the event of an apparent violation, shall MAY     1,011        

report his THE findings OF THE INVESTIGATION to the APPROPRIATE    1,013        

prosecuting attorney of Franklin county AUTHORITY, who shall       1,014        

institute such proceedings as are appropriate.                     1,015        

      (B)  AS PART OF AN INVESTIGATION, THE LEGISLATIVE INSPECTOR  1,017        

GENERAL, OR A DESIGNEE, MAY ADMINISTER OATHS, EXAMINE WITNESSES,   1,020        

AND ISSUE SUBPOENAS AND SUBPOENAS DUCES TECUM TO COMPEL THE        1,021        

ATTENDANCE OF WITNESSES AND THE PRODUCTION OF ALL KINDS OF BOOKS,  1,022        

                                                          24     

                                                                 
RECORDS, PAPERS, AND TANGIBLE THINGS.  UPON THE REFUSAL OF A                    

WITNESS TO BE SWORN OR TO ANSWER ANY QUESTION PUT TO THE WITNESS,  1,024        

OR IF A PERSON DISOBEYS A SUBPOENA, THE LEGISLATIVE INSPECTOR                   

GENERAL SHALL APPLY TO THE COURT OF COMMON PLEAS FOR A CONTEMPT    1,025        

ORDER, AS IN THE CASE OF DISOBEDIENCE TO THE REQUIREMENTS OF A     1,026        

SUBPOENA ISSUED FROM THE COURT OF COMMON PLEAS, OR A REFUSAL TO    1,027        

TESTIFY IN THE COURT.                                                           

      Sec. 121.60.  As used in sections 121.60 to 121.69 of the    1,036        

Revised Code:                                                      1,037        

      (A)  "Person" and "compensation" have the same meanings as   1,039        

in section 101.70 of the Revised Code.                             1,040        

      (B)(1)  "Expenditure" means any of the following that is     1,042        

made to, at the request of, for the benefit of, or on behalf of    1,043        

an elected executive official, the director of a department        1,044        

created under section 121.02 of the Revised Code, an executive     1,045        

agency official, or a member of the staff of any public officer    1,046        

or employee listed in this division:                               1,047        

      (1)(a)  A payment, distribution, loan, advance, deposit,     1,049        

reimbursement, or gift of money, real estate, or anything of       1,050        

value, including, but not limited to, food and beverages,          1,051        

entertainment, lodging, transportation, or honorariums;            1,052        

      (2)(b)  A contract, promise, or agreement to make an         1,054        

expenditure, whether or not legally enforceable;                   1,055        

      (3)(c)  The purchase, sale, or gift of services or any       1,057        

other thing of value.  "Expenditure                                1,058        

      (2)  "EXPENDITURE" does not include a ANY OF THE FOLLOWING:  1,061        

      (a)  A contribution, gift, or grant to a foundation or       1,065        

other charitable organization that is exempt from federal income   1,066        

taxation under subsection 501(c)(3) of the Internal Revenue Code.  1,067        

"Expenditure" does not include the;                                             

      (b)  THE purchase, sale, or gift of services or any other    1,070        

thing of value that is available to the general public on the      1,071        

same terms as it is available to the persons listed in this        1,072        

division, or an offer or sale of securities to any person listed   1,073        

                                                          25     

                                                                 
in this division that is governed by regulation D, 17 C.F.R.       1,074        

2301.501 to 2301.508, adopted under the authority of the           1,075        

"Securities Act of 1933," 48 Stat. 74, 15 U.S.C.A. and following,  1,076        

or that is governed by a comparable provision under state law.;    1,077        

      (c)  A CONTRIBUTION AS DEFINED IN SECTION 3517.01 OF THE     1,081        

REVISED CODE;                                                      1,082        

      (d)  AMOUNTS SPENT FOR TRADE, INDUSTRY, GOVERNMENT, OR       1,085        

PROFESSIONAL ASSOCIATION PUBLICATIONS;                                          

      (e)  AMOUNTS SPENT FOR PROMOTIONAL MATERIALS OR ITEMS        1,088        

VALUED AT LESS THAN TWENTY-FIVE DOLLARS;                           1,089        

      (f)  AMOUNTS SPENT FOR MEALS AND OTHER FOOD AND BEVERAGES    1,092        

PROVIDED TO A PARTICULAR ELECTED EXECUTIVE OFFICIAL, THE DIRECTOR  1,093        

OF A DEPARTMENT CREATED UNDER SECTION 121.02 OF THE REVISED CODE,  1,094        

A PARTICULAR EXECUTIVE AGENCY OFFICIAL, OR ANY PARTICULAR MEMBER   1,095        

OF THE STAFF OF ANY OF THE PUBLIC OFFICERS OR EMPLOYEES LISTED IN  1,096        

DIVISION (B)(2)(f) OF THIS SECTION AT A MEETING AT WHICH THE       1,098        

PUBLIC OFFICER OR EMPLOYEE PARTICIPATED IN A SEMINAR, PANEL, OR                 

SPEAKING ENGAGEMENT OR PROVIDED TO THE PUBLIC OFFICER OR EMPLOYEE  1,100        

AT A MEETING OR CONVENTION OF A NATIONAL ORGANIZATION TO WHICH     1,102        

THE PUBLIC EMPLOYER OF THE PUBLIC OFFICER OR PUBLIC EMPLOYEE PAYS  1,103        

MEMBERSHIP DUES.                                                   1,104        

      (C)  "Employer" means any person who, directly or            1,106        

indirectly, engages an executive agency lobbyist.                  1,107        

      (D)  "Engage" means to make any arrangement, and             1,109        

"engagement" means arrangement, whereby an individual is employed  1,110        

or retained for compensation to act for or on behalf of an         1,112        

employer to influence executive agency decisions or to conduct     1,113        

any executive agency lobbying activity.                            1,114        

      (E)  "Financial transaction" means a transaction or          1,116        

activity that is conducted or undertaken for profit and arises     1,117        

from the joint ownership or the ownership or part ownership in     1,118        

common of any real or personal property or any commercial or       1,119        

business enterprise of whatever form or nature between the         1,120        

following:                                                         1,121        

                                                          26     

                                                                 
      (1)  An executive agency lobbyist, his THE EXECUTIVE AGENCY  1,123        

LOBBYIST'S employer, or a member of the immediate family of the    1,125        

executive agency lobbyist or his THE EXECUTIVE AGENCY LOBBYIST'S   1,126        

employer; and                                                                   

      (2)  Any elected executive official, the director of a       1,128        

department created under section 121.02 of the Revised Code, an    1,129        

executive agency official, or any member of the staff of a public  1,130        

officer or employee listed in division (E)(2) of this section.     1,131        

      "Financial transaction" does not include any transaction or  1,133        

activity described in division (E) of this section if it is        1,134        

available to the general public on the same terms, or if it is an  1,135        

offer or sale of securities to any person listed in division       1,136        

(E)(2) of this section that is governed by regulation D, 17        1,137        

C.F.R. 2301.501 to 2301.508, adopted under the authority of the    1,138        

"Securities Act of 1933," 48 Stat. 74, 15 U.S.C.A. and following,  1,139        

or that is governed by a comparable provision under state law.     1,140        

      (F)  "Executive agency" means the office of an elected       1,142        

executive official, a department created under section 121.02 of   1,143        

the Revised Code, or any other state agency, department, board,    1,144        

or commission controlled or directed by an elected executive       1,145        

official or otherwise subject to his AN ELECTED EXECUTIVE          1,146        

OFFICIAL'S authority.  "Executive agency" does not include any     1,148        

court, the general assembly, or the controlling board.             1,149        

      (G)  "Executive agency decision" means a decision of an      1,151        

executive agency regarding the expenditure of funds of the state   1,152        

or of an executive agency with respect to the award of a           1,153        

contract, grant, lease, or other financial arrangement under       1,154        

which such funds are distributed or allocated, or a regulatory     1,155        

decision of an executive agency or any board or commission of the  1,156        

state.  "Executive agency decision" does not include either of     1,157        

the following:                                                                  

      (1)  A purchasing decision for which a vendor has filed a    1,159        

statement certifying that he THE VENDOR has not made campaign      1,160        

contributions in an amount such that section 3517.13 of the        1,162        

                                                          27     

                                                                 
Revised Code would invalidate the decision, if that vendor has     1,163        

not engaged an executive agency lobbyist;                          1,164        

      (2)  The award of a competitively bid contract for which     1,166        

bid specifications were prepared and for which at least three      1,167        

eligible competitive bids were received by the executive agency.   1,168        

      (H)  "Executive agency lobbyist" means any person engaged    1,170        

to influence executive agency decisions or to conduct executive    1,171        

agency lobbying activity as one of his main purposes on a regular  1,173        

and substantial basis DURING A SIGNIFICANT PORTION OF THE          1,174        

PERSON'S TIME.  "Executive agency lobbyist" does not include an    1,176        

elected or appointed officer or employee of a federal or state     1,177        

agency, state college, state university, or political subdivision  1,178        

who attempts to influence or affect executive agency decisions in  1,179        

his A fiduciary capacity as a representative of his THE OFFICER'S  1,180        

OR EMPLOYEE'S agency, college, university, or political            1,181        

subdivision.                                                                    

      (I)  "Executive agency lobbying activity" means contacts     1,183        

made to promote, oppose, or otherwise influence the outcome of an  1,184        

executive agency decision by direct communication with an elected  1,185        

executive official, the director of any department listed in       1,186        

section 121.02 of the Revised Code, any executive agency           1,187        

official, or a member of the staff of any public officer or        1,188        

employee listed in this division.  "Lobbying activity" does not    1,189        

include any of the following:                                      1,190        

      (1)  The action of any person having a direct interest in    1,192        

executive agency decisions who, under Section 3 of Article I,      1,193        

Ohio Constitution, assembles together with other persons to        1,194        

consult for their common good, instructs a person listed in the    1,195        

first paragraph of division (I) of this section, or petitions      1,196        

such a person for the redress of grievances;                       1,197        

      (2)  Contacts made for the sole purpose of gathering         1,199        

information contained in a public record;                          1,200        

      (3)  Appearances before an executive agency to give          1,202        

testimony.                                                         1,203        

                                                          28     

                                                                 
      (J)  "Executive agency official" means an officer or         1,205        

employee of an executive agency whose principal duties are to      1,206        

formulate policy or to participate directly or indirectly in the   1,207        

preparation, review, or award of contracts, grants, leases, or     1,208        

other financial arrangements with an executive agency.             1,209        

      (K)  "Aggrieved party" means a party entitled to resort to   1,211        

a remedy.                                                          1,212        

      (L)  "Elected executive official" means the governor,        1,214        

lieutenant governor, secretary of state, auditor of state,         1,215        

treasurer of state, and the attorney general.                      1,216        

      (M)  "Staff" means any officer or employee of an executive   1,218        

agency whose official duties are to formulate policy and, who      1,219        

exercises administrative or supervisory authority or who           1,220        

authorizes the expenditure of state funds, AND WHO IS REQUIRED TO  1,221        

FILE A DISCLOSURE STATEMENT UNDER SECTION 102.02 OF THE REVISED    1,222        

CODE.                                                                           

      Sec. 121.61.  (A)  No person shall knowingly fail to         1,231        

register as required under section 121.62 of the Revised Code AND  1,232        

NO PERSON SHALL KNOWINGLY ACT AS AN EXECUTIVE AGENCY LOBBYIST OR   1,234        

EMPLOYER WHILE THE PERSON'S REGISTRATION IS SUSPENDED UNDER                     

DIVISION (F) OF SECTION 121.62 OF THE REVISED CODE.                1,236        

      (B)  No person shall knowingly fail to keep a receipt or     1,238        

maintain a record that section 121.63 of the Revised Code          1,239        

requires the person to keep or maintain.                           1,240        

      (C)  No person shall knowingly fail to file a statement      1,242        

that section 121.63 or 121.64 of the Revised Code requires the     1,243        

person to file.                                                                 

      (D)  No person shall knowingly file a false statement that   1,245        

section 121.63 or 121.64 of the Revised Code requires the person   1,246        

to file.                                                                        

      Sec. 121.62.  (A)  Each executive agency lobbyist and each   1,255        

employer shall file with the joint OFFICE OF legislative ethics    1,257        

committee INSPECTOR GENERAL, within ten days following the         1,258        

engagement of an executive agency lobbyist, an initial A JOINT     1,259        

                                                          29     

                                                                 
registration statement showing all of the following:               1,261        

      (1)  The name, business address, and occupation of the       1,263        

executive agency lobbyist;                                         1,264        

      (2)  The name and business address of the employer or of     1,266        

the real party in interest on whose behalf the executive agency    1,267        

lobbyist is acting, if it is different from the employer.  For     1,268        

the purposes of division (A) of this section, where a trade        1,269        

association or other charitable or fraternal organization that is  1,270        

exempt from federal income taxation under subsection 501(c) of     1,271        

the federal Internal Revenue Code is the employer, the statement   1,272        

need not list the names and addresses of every member of the       1,273        

association or organization, so long as the association or         1,274        

organization itself is listed.                                     1,275        

      (3)  A brief description of the executive agency decision    1,277        

to which the engagement relates;                                   1,278        

      (4)  The name of the executive agency or agencies to which   1,280        

the engagement relates.                                            1,281        

      (B)  In addition to the initial registration statement       1,283        

required by division (A) of this section, each executive agency    1,284        

lobbyist and employer shall file with the joint committee OFFICE,  1,286        

not later than the last day of January, May, and September JULY    1,288        

of each year, an updated registration statement that confirms the  1,289        

continuing existence of each engagement described in an initial    1,290        

registration statement and that lists the specific executive       1,291        

agency decisions that the lobbyist sought to influence under the   1,292        

engagement during the period covered by the updated statement,     1,293        

and with it any statement of expenditures required to be filed by  1,294        

section 121.63 of the Revised Code and any details of financial    1,295        

transactions required to be filed by section 121.64 of the         1,296        

Revised Code.                                                      1,297        

      (C)  If an executive agency lobbyist is engaged by more      1,299        

than one employer, the lobbyist shall file a separate initial and  1,300        

updated registration statement for each engagement.  If an         1,301        

employer engages more than one executive agency lobbyist, the      1,302        

                                                          30     

                                                                 
employer need file only one updated registration statement under   1,303        

division (B) of this section, which shall contain the information  1,304        

required by division (B) of this section regarding all of the      1,305        

executive agency lobbyists engaged by the employer.                1,306        

      (D)(1)  A change in any information required by division     1,308        

(A)(1), (2), or (B) of this section shall be reflected in the      1,309        

next updated registration statement filed under division (B) of    1,310        

this section.                                                      1,311        

      (2)  Within thirty days following the termination of an      1,313        

engagement, the executive agency lobbyist who was employed under   1,314        

the engagement shall send written notification of the termination  1,315        

to the joint committee OFFICE.                                     1,316        

      (E)  A registration fee of ten dollars shall be charged for  1,318        

filing an initial registration statement.  All money collected     1,319        

from this fee shall be deposited into the state treasury to the    1,320        

credit of the joint legislative ethics committee fund created      1,322        

under section 101.34 of the Revised Code.                          1,323        

      (F)  Upon registration pursuant to this section, an          1,325        

executive agency lobbyist shall be issued a card by the joint      1,326        

committee OFFICE showing that the lobbyist is registered.  The     1,327        

registration card and the executive agency lobbyist's              1,328        

registration shall be valid from the date of their issuance until  1,329        

the NEXT thirty-first day of January DECEMBER of the AN            1,331        

EVEN-NUMBERED year following the year in which the initial         1,332        

registration was filed UNLESS THE EXECUTIVE AGENCY LOBBYIST'S      1,333        

REGISTRATION IS SUSPENDED UNDER THIS DIVISION.                                  

      ANY PERSON FOUND GUILTY OF TWO OR MORE VIOLATIONS OF         1,335        

DIVISION (A), (B), (C), OR (D) OF SECTION 121.61, OR OF SECTION    1,336        

2921.02 OR 2921.13, OF THE REVISED CODE IS PROHIBITED THEREAFTER   1,337        

FROM REGISTERING AS AN EXECUTIVE AGENCY LOBBYIST OR AN EMPLOYER    1,338        

OF AN EXECUTIVE AGENCY LOBBYIST, AND ANY EXISTING REGISTRATION OF  1,339        

THAT PERSON IS REVOKED.  ANY PERSON ASSESSED THE MAXIMUM LATE      1,340        

FILING FEE UNDER DIVISION (G) OF THIS SECTION FOR TWO SUCCESSIVE   1,341        

SIX-MONTH REPORTING PERIODS IS PROHIBITED FROM REGISTERING AS AN                

                                                          31     

                                                                 
EXECUTIVE AGENCY LOBBYIST OR EMPLOYER OF AN EXECUTIVE AGENCY       1,342        

LOBBYIST FOR SIX MONTHS, AND ANY EXISTING REGISTRATION OF THAT     1,343        

PERSON IS SUSPENDED FOR SIX MONTHS.                                1,344        

      (G)  The executive director of the joint committee OFFICE    1,346        

shall be responsible for reviewing each registration statement     1,348        

filed with the joint committee OFFICE under this section and for   1,349        

determining whether the statement contains all of the required     1,351        

information.  If the joint committee OFFICE determines that the    1,352        

registration statement does not contain all of the required        1,354        

information or that an executive agency lobbyist or employer has   1,355        

failed to file a registration statement, the joint committee       1,356        

OFFICE shall send written notification by certified mail to the    1,358        

person who filed the registration statement regarding the          1,359        

deficiency in the statement or to the person who failed to file    1,360        

the registration statement regarding the failure.  Any person so   1,361        

notified by the joint committee OFFICE shall, not later than       1,362        

fifteen days after receiving the notice, file a registration       1,364        

statement or an amended registration statement that contains all   1,365        

of the required information.  If any person who receives a notice  1,366        

under this division fails to file a registration statement or      1,367        

such an amended registration statement within this fifteen-day     1,368        

period, the joint committee OFFICE shall notify the attorney       1,370        

general, who may take appropriate action as authorized by section  1,371        

121.69 of the Revised Code ASSESS A LATE FILING FEE OF             1,372        

TWENTY-FIVE DOLLARS PER DAY, UP TO A MAXIMUM OF TWO HUNDRED FIFTY               

DOLLARS, UPON THAT PERSON.  IF ANY PERSON ASSESSED THE MAXIMUM     1,373        

TWO-HUNDRED-FIFTY-DOLLAR LATE FEE UNDER THIS DIVISION STILL FAILS  1,374        

TO FILE A REGISTRATION STATEMENT OR AN AMENDED REGISTRATION        1,375        

STATEMENT, THE OFFICE MAY REFER THE MATTER TO APPROPRIATE          1,376        

PROSECUTING AUTHORITY.                                                          

      If the joint committee notifies the attorney general         1,378        

pursuant to this division, the joint committee shall also notify   1,379        

each elected executive official and the director of each           1,380        

department created under section 121.02 of the Revised Code of     1,381        

                                                          32     

                                                                 
the pending investigation.                                         1,382        

      (H)  On or before the fifteenth day of March of each year,   1,384        

the joint committee OFFICE shall, in the manner and form that it   1,385        

determines, publish a report containing statistical information    1,386        

on the registration statements filed with it under this section    1,387        

during the preceding year.                                         1,388        

      (I)  If an employer who engages an executive agency          1,390        

lobbyist is the recipient of a contract, grant, lease, or other    1,391        

financial arrangement pursuant to which funds of the state or of   1,392        

an executive agency are distributed or allocated, the executive    1,393        

agency or any aggrieved party may consider the failure of the      1,394        

employer or the executive agency lobbyist to comply with this      1,395        

section as a breach of a material condition of the contract,       1,396        

grant, lease, or other financial arrangement.                      1,397        

      (J)  Executive agency officials may require certification    1,399        

from any person seeking the award of a contract, grant, lease, or  1,400        

financial arrangement that the person and his THE PERSON'S         1,401        

employer are in compliance with this section.                      1,403        

      Sec. 121.63.  (A)  Each executive agency lobbyist and each   1,412        

employer shall file with the joint OFFICE OF legislative ethics    1,414        

committee INSPECTOR GENERAL, with the updated registration         1,415        

statement required by division (B) of section 121.62 of the        1,416        

Revised Code, a statement of expenditures as specified in          1,417        

divisions (B) and (C) of this section.  An executive agency        1,418        

lobbyist shall file a separate statement of expenditures under     1,419        

this section for each employer that engages him THE EXECUTIVE      1,420        

AGENCY LOBBYIST.                                                                

      (B)(1)  In addition to the information required by           1,422        

divisions (B)(2) and (3) of this section, a statement filed by an  1,424        

executive agency lobbyist shall show the total amount of           1,425        

expenditures made during the reporting period covered by the       1,426        

statement by the executive agency lobbyist.                        1,427        

      (2)  If, during a reporting period covered by a statement,   1,429        

an employer or any executive agency lobbyist he engaged made,      1,431        

                                                          33     

                                                                 
either separately or in combination with each other, expenditures  1,432        

to, at the request of, for the benefit of, or on behalf of a       1,433        

particular elected executive official, the director of a           1,434        

department created under section 121.02 of the Revised Code, a     1,435        

particular executive agency official, or a particular member of    1,436        

the staff of any public officer listed in division (B)(2) of this  1,437        

section, the employer or executive agency lobbyist also shall      1,438        

state the name of the public officer or employee to whom, at       1,439        

whose request, for whose benefit, or on whose behalf the           1,440        

expenditures were made, the total amount of the expenditures       1,441        

made, a brief description of the expenditures made, the            1,442        

approximate date the expenditures were made, the executive agency  1,443        

decision, if any, sought to be influenced, and the identity of     1,444        

the client on whose behalf the expenditure was made.               1,445        

      As used in division (B)(2) of this section, "expenditures"   1,447        

does not include expenditures made by an executive agency          1,448        

lobbyist as payment for meals and other food and beverages.        1,449        

      (3)  If, during a reporting period covered by a statement,   1,451        

an executive agency lobbyist made expenditures as payment for      1,453        

meals and other food and beverages, other than for meals and       1,455        

other food and beverages provided at a meeting at which the                     

person participated in a panel, seminar, or speaking engagement    1,456        

or at a meeting or convention of a national organization to which  1,457        

either house of the general assembly, any legislative agency, or   1,458        

any other state agency pays membership dues, that, when added to   1,459        

the amount of previous payments made for meals and other food and  1,461        

beverages by that executive agency lobbyist during that same                    

calendar year, exceeded a total of fifty dollars to, at the        1,463        

request of, for the benefit of, or on behalf of a particular                    

elected executive official, the director of a department created   1,464        

under section 121.02 of the Revised Code, a particular executive   1,465        

agency official, or any particular member of the staff of any of   1,466        

the public officers or employees listed in division (B)(3) of      1,467        

this section, then the executive agency lobbyist shall also state  1,469        

                                                          34     

                                                                 
regarding those expenditures the name of the public officer or     1,470        

employee to whom, at whose request, for whose benefit, or on       1,471        

whose behalf the expenditures were made, the total amount of the   1,472        

expenditures made, a brief description of the expenditures made,   1,473        

the approximate date the expenditures were made, the executive     1,474        

agency decision, if any, sought to be influenced, and the          1,475        

identity of the client on whose behalf the expenditure was made.   1,476        

      (C)(1)  In addition to the information required by           1,478        

divisions (B)(C)(2) and (3) of this section, a statement filed by  1,480        

an employer shall show the total amount of expenditures made by    1,481        

the employer filing the statement during the period covered by     1,482        

the statement. As used in this section, "expenditures" does not    1,483        

include the expenses of maintaining office facilities, or the      1,485        

compensation paid to executive agency lobbyists engaged to         1,487        

influence executive agency decisions or conduct executive agency   1,488        

lobbying activity.                                                              

      (2)  IF, DURING A REPORTING PERIOD COVERED BY A STATEMENT,   1,490        

AN EMPLOYER MADE EXPENDITURES TO, AT THE REQUEST OF, FOR THE       1,493        

BENEFIT OF, OR ON BEHALF OF A PARTICULAR ELECTED EXECUTIVE         1,494        

OFFICIAL, THE DIRECTOR OF A DEPARTMENT CREATED UNDER SECTION       1,495        

121.02 OF THE REVISED CODE, A PARTICULAR EXECUTIVE AGENCY          1,496        

OFFICIAL, OR A PARTICULAR MEMBER OF THE STAFF OF ANY PUBLIC        1,497        

OFFICER LISTED IN DIVISION (C)(2) OF THIS SECTION, THE EMPLOYER    1,498        

ALSO SHALL STATE THE NAME OF THE PUBLIC OFFICER OR EMPLOYEE TO     1,499        

WHOM, AT WHOSE REQUEST, FOR WHOSE BENEFIT, OR ON WHOSE BEHALF THE  1,500        

EXPENDITURES WERE MADE, THE TOTAL AMOUNT OF THE EXPENDITURES       1,501        

MADE, A BRIEF DESCRIPTION OF THE EXPENDITURES MADE, THE            1,502        

APPROXIMATE DATE THE EXPENDITURES WERE MADE, THE EXECUTIVE AGENCY  1,503        

DECISION, IF ANY, SOUGHT TO BE INFLUENCED, AND THE IDENTITY OF     1,504        

THE CLIENT ON WHOSE BEHALF THE EXPENDITURE WAS MADE.               1,505        

      AS USED IN DIVISION (C)(2) OF THIS SECTION, "EXPENDITURES"   1,507        

DOES NOT INCLUDE EXPENDITURES MADE BY AN EMPLOYER AS PAYMENT FOR   1,509        

MEALS AND OTHER FOOD AND BEVERAGES.                                1,510        

      (3)  IF, DURING A REPORTING PERIOD COVERED BY A STATEMENT,   1,512        

                                                          35     

                                                                 
AN EMPLOYER MADE EITHER DIRECTLY OR INDIRECTLY EXPENDITURES AS     1,514        

PAYMENT FOR MEALS AND OTHER FOOD AND BEVERAGES TO, AT THE REQUEST  1,516        

OF, FOR THE BENEFIT OF, OR ON BEHALF OF A PARTICULAR ELECTED       1,517        

EXECUTIVE OFFICIAL, THE DIRECTOR OF A DEPARTMENT CREATED UNDER     1,518        

SECTION 121.02 OF THE REVISED CODE, A PARTICULAR EXECUTIVE AGENCY  1,519        

OFFICIAL, OR ANY PARTICULAR MEMBER OF THE STAFF OF ANY OF THE      1,520        

PUBLIC OFFICERS OR EMPLOYEES LISTED IN DIVISION (C)(3) OF THIS     1,521        

SECTION, THEN THE EMPLOYER SHALL ALSO STATE REGARDING THOSE        1,522        

EXPENDITURES THE NAME OF THE PUBLIC OFFICER OR EMPLOYEE TO WHOM,   1,523        

AT WHOSE REQUEST, FOR WHOSE BENEFIT, OR ON WHOSE BEHALF THE        1,524        

EXPENDITURES WERE MADE, THE TOTAL AMOUNT OF THE EXPENDITURES       1,525        

MADE, A BRIEF DESCRIPTION OF THE EXPENDITURES MADE, THE            1,526        

APPROXIMATE DATE THE EXPENDITURES WERE MADE, THE EXECUTIVE AGENCY  1,527        

DECISION, IF ANY, SOUGHT TO BE INFLUENCED, AND THE IDENTITY OF     1,528        

THE CLIENT ON WHOSE BEHALF THE EXPENDITURE WAS MADE.               1,529        

      (4)  No employer shall be required to show any expenditure   1,531        

on a statement filed under this division if the expenditure is     1,532        

reported on a statement filed under division (B)(1), (2), or (3)   1,533        

of this section by an executive agency lobbyist engaged by the     1,534        

employer.                                                          1,535        

      (D)  Any statement required to be filed under this section   1,538        

shall be filed at the times specified in section 121.62 of the     1,539        

Revised Code.  Each statement shall cover expenditures made        1,540        

during the four-calendar-month SIX-CALENDAR-MONTH period that      1,541        

ended on the last day of the month immediately preceding the       1,543        

month in which the statement is required to be filed.              1,544        

      (E)  If it is impractical or impossible for an executive     1,546        

agency lobbyist or employer to determine exact dollar amounts or   1,547        

values of expenditures, reporting of good faith estimates, based   1,548        

on reasonable accounting procedures, constitutes compliance with   1,549        

this division.                                                     1,550        

      (F)  Executive agency lobbyists and employers shall retain   1,552        

receipts or maintain records for all expenditures that are         1,553        

required to be reported pursuant to this section.  These receipts  1,554        

                                                          36     

                                                                 
or records shall be maintained for a period ending on the          1,555        

thirty-first day of December of the second calendar year after     1,556        

the year in which the expenditure was made.                        1,557        

      (G)(1)  At least ten days before the date on which the       1,559        

statement is filed, each employer or executive agency lobbyist     1,560        

who is required to file an expenditure statement under division    1,561        

(B)(2) or (3)(C) of this section shall deliver a copy of the       1,563        

statement, or the portion showing the expenditure, to the public   1,564        

officer or employee who is listed in the statement as having       1,565        

received the expenditure or on whose behalf it was made.           1,566        

      (2)  If, during a reporting period covered by an             1,568        

expenditure statement filed under division (B)(2) of this          1,570        

section, an employer or any executive agency lobbyist he engaged   1,571        

made, either separately or in combination with each other, either  1,573        

directly or indirectly, expenditures for an honorarium or for                   

transportation, lodging, or food and beverages purchased for       1,574        

consumption on the premises in which the food and beverages were   1,575        

sold to, at the request of, for the benefit or, or on behalf of    1,576        

any of the public officers or employees described in division      1,577        

(B)(2) of this section, the employer or executive agency lobbyist  1,578        

shall deliver to the public officer or employee a statement that                

contains all of the nondisputed information prescribed in          1,579        

division (B)(2) of this section with respect to the expenditures   1,580        

described in division (G)(2) of this section.  The statement of    1,581        

expenditures made under division (G)(2) of this section shall be   1,582        

delivered to the public officer or employee to whom, at whose      1,583        

request, for whose benefit, or on whose behalf those expenditures               

were made on the same day in which a copy of the expenditure       1,584        

statement or of a portion showing the expenditure is delivered to  1,585        

the public officer or employee under division (G)(1) of this       1,586        

section.  An employer is not required to show any expenditure on   1,587        

a statement delivered under division (G)(2) of this section if     1,588        

the expenditure is shown on a statement delivered under division                

(G)(2) of this section by a legislative agent engaged by the       1,589        

                                                          37     

                                                                 
employer.                                                                       

      Sec. 121.64.  (A)  Each executive agency lobbyist who has    1,598        

had any financial transaction with or for the benefit of an        1,599        

elected executive official, the director of a department created   1,600        

under section 121.02 of the Revised Code, an executive agency      1,601        

official, or any member of the staff of any of the public          1,602        

officers or employees listed in this division shall describe the   1,603        

details of the transaction, including the name of the public       1,604        

officer or employee, the purpose and nature of the transaction,    1,605        

and the date it was made or entered into, in a statement filed     1,606        

with the joint OFFICE OF legislative ethics committee INSPECTOR    1,608        

GENERAL with the updated registration statement required by        1,609        

division (B) of section 121.62 of the Revised Code.  The           1,610        

statements shall be filed at the times specified in section        1,611        

121.62 of the Revised Code.  Each statement shall describe each    1,612        

financial transaction that occurred during the                     1,613        

four-calendar-month SIX-CALENDAR-MONTH period that ended on the    1,614        

last day of the month immediately preceding the month in which     1,615        

the statement is required to be filed.                             1,616        

      (B)  Except as provided in division (D) of this section,     1,618        

each employer who has had any financial transaction with or for    1,619        

the benefit of an elected executive official, the director of a    1,620        

department created under section 121.02 of the Revised Code, an    1,621        

executive agency official, or any member of the staff of any of    1,622        

the public officers or employees listed in this division shall     1,623        

describe the details of the transaction, including the name of     1,624        

the public officer or employee, the purpose and nature of the      1,625        

transaction, and the date it was made or entered into, in a        1,626        

statement filed with the joint committee OFFICE with the updated   1,627        

registration statement required by division (B) of section 121.62  1,630        

of the Revised Code.  The statement shall be filed at the times    1,631        

specified in section 121.62 of the Revised Code.  Each statement   1,632        

shall describe each financial transaction that occurred during     1,633        

the four-calendar-month SIX-CALENDAR-MONTH period that ended on    1,634        

                                                          38     

                                                                 
the last day of the month immediately preceding the month in       1,635        

which the statement is required to be filed.                       1,636        

      (C)  At least ten days before the date on which the          1,638        

statement is filed, each employer or executive agency lobbyist     1,639        

who is required to file a statement describing a financial         1,640        

transaction under this section shall deliver a copy of the         1,641        

statement to the public officer or employee with whom or for       1,642        

whose benefit the transaction was made.                            1,643        

      (D)  No employer shall be required to file any statement     1,645        

under this section or to deliver a copy of the statement to a      1,646        

public officer or employee with whom or for whose benefit the      1,647        

transaction was made if the financial transaction to which the     1,648        

statement pertains is reported by an executive agency lobbyist     1,649        

engaged by the employer.                                           1,650        

      Sec. 121.65.  If a dispute arises between an elected         1,659        

executive official, the director of a department created under     1,660        

section 121.02 of the Revised Code, an executive agency official,  1,661        

or any member of the staff of any public officer or employee       1,662        

listed in this division and an employer or executive agency        1,663        

lobbyist with respect to an expenditure or financial transaction   1,664        

alleged in a statement to be filed under section 121.63 or 121.64  1,665        

of the Revised Code, the public officer or employee, STAFF         1,667        

MEMBER, employer, or executive agency lobbyist may file a          1,668        

complaint with the Ohio ethics commission OFFICE OF LEGISLATIVE    1,669        

INSPECTOR GENERAL.  The commission OFFICE shall proceed to         1,670        

investigate the complaint as though it were filed under PROVIDED   1,671        

FOR OTHER COMPLAINTS IN section 102.06 101.79 of the Revised       1,673        

Code.                                                                           

      The complaint shall be filed at least three days prior to    1,675        

the time the statement is required to be filed with the joint      1,676        

legislative ethics committee OFFICE.  The time for filing a        1,677        

disputed expenditure or financial transaction in any statement of  1,679        

expenditures or the details of a financial transaction shall be    1,680        

extended pending the final decision of the commission OFFICE.      1,681        

                                                          39     

                                                                 
This extension does not extend the time for filing the             1,682        

nondisputed portions of either type of A statement OF              1,683        

EXPENDITURES OR OF THE DETAILS OF A FINANCIAL TRANSACTION.  The    1,684        

commission OFFICE shall notify the parties of its final decision   1,686        

by certified mail.  If the commission OFFICE decides that the      1,687        

disputed expenditure or financial transaction should be reported,  1,689        

the employer or executive agency lobbyist shall include the        1,690        

matter in an amended statement and file the amended statement not  1,691        

later than ten days after receiving notice of the decision of the  1,692        

commission OFFICE by certified mail.                               1,694        

      An employer or executive agency lobbyist who files a false   1,696        

statement of expenditures or details of a financial transaction    1,697        

is liable in a civil action to any public officer or employee who  1,698        

sustains damage as a result of the filing or publication of the    1,699        

statement.                                                         1,700        

      Sec. 121.68.  (A)  The joint committee on agency rule        1,709        

review OFFICE OF LEGISLATIVE INSPECTOR GENERAL shall keep on file  1,710        

the statements required by sections 121.62, 121.63, and 121.64 of  1,712        

the Revised Code.  These statements are public records and open    1,713        

to public inspection, and the joint committee OFFICE shall         1,714        

computerize them so that the information contained in them is      1,715        

readily accessible to the general public. The joint committee      1,716        

OFFICE shall provide copies of the statements to the general       1,718        

public on request and may charge a reasonable fee not to exceed    1,719        

the cost of copying and delivering the statement.                               

      (B)  Not later than the last day of February and October of  1,721        

each year, the joint committee OFFICE shall compile from the       1,722        

registration statements filed with it a complete and updated list  1,723        

of registered executive agency lobbyists and their employers, and  1,724        

distribute the list to each elected executive official and the     1,725        

director of each department created under section 121.02 of the    1,726        

Revised Code, who shall distribute the list to the appropriate     1,727        

personnel under his THE OFFICIAL'S OR DIRECTOR'S jurisdiction.     1,728        

The joint committee OFFICE shall provide copies of the list to     1,730        

                                                          40     

                                                                 
the general public upon request and may charge a reasonable fee    1,731        

not to exceed the cost of copying and delivering the list.         1,732        

      (C)  The joint committee OFFICE shall maintain a list of     1,734        

all executive agencies.  The joint committee OFFICE shall provide  1,735        

copies of the list to the general public on request and may        1,737        

charge a reasonable fee not to exceed the cost of copying and      1,738        

delivering the document.                                           1,739        

      (D)  The joint committee OFFICE shall prescribe and make     1,741        

available an appropriate form for the filings required by          1,743        

sections 121.62, 121.63, and 121.64 of the Revised Code.  The      1,744        

form shall contain the following notice in boldface type:  "ANY    1,745        

PERSON WHO KNOWINGLY FILES A FALSE STATEMENT IS GUILTY OF          1,746        

FALSIFICATION UNDER SECTION 2921.13 OF THE REVISED CODE, WHICH IS  1,747        

A MISDEMEANOR OF THE FIRST DEGREE."                                1,748        

      (E)  Any THE JOINT COMMITTEE MAY ADOPT RULES TO IMPLEMENT    1,750        

SECTIONS 121.60 TO 121.69 OF THE REVISED CODE, AND ANY SUCH rules  1,751        

adopted by the joint committee to implement sections 121.60 to     1,754        

121.69 of the Revised Code IT ADOPTS shall be adopted in           1,755        

accordance with Chapter 119. SECTION 111.15 of the Revised Code.   1,757        

The joint committee OFFICE may periodically adopt rules that       1,758        

increase the amounts specified in division (B) of section 121.63   1,760        

of the Revised Code in order to reflect inflation.  Any increase   1,761        

shall be set forth on the form described in division (D) of this   1,762        

section.                                                                        

      (F)  The joint committee OFFICE shall publish a handbook     1,764        

that explains in clear and concise language the provisions of      1,765        

sections 121.60 to 121.69 of the Revised Code and make it          1,766        

available free of charge to executive agency lobbyists,            1,767        

employers, and any other interested persons.                       1,768        

      Sec. 121.69.  (A)  The attorney GENERAL AND THE OFFICE OF    1,777        

LEGISLATIVE INSPECTOR GENERAL and any assistant or special         1,779        

counsel designated by him THE ATTORNEY GENERAL OR OFFICE may       1,780        

investigate compliance with sections 121.60 to 121.68 of the       1,782        

Revised Code in connection with statements required to be filed                 

                                                          41     

                                                                 
under these sections and, in the event of an apparent violation,   1,783        

shall MAY report his THE findings to the APPROPRIATE prosecuting   1,787        

attorney of Franklin county AUTHORITY, who shall institute such    1,789        

proceedings as are appropriate.                                                 

      (B)  THE LEGISLATIVE INSPECTOR GENERAL MAY RECEIVE AND       1,791        

INVESTIGATE COMPLAINTS THE OFFICE RECEIVES UNDER SECTION 121.65    1,792        

OF THE REVISED CODE AND PREPARE A REPORT THEREON.                  1,793        

      (C)  AS PART OF AN INVESTIGATION, THE LEGISLATIVE INSPECTOR  1,795        

GENERAL, OR A DESIGNEE, MAY ADMINISTER OATHS, EXAMINE WITNESSES,   1,798        

AND ISSUE SUBPOENAS AND SUBPOENAS DUCES TECUM TO COMPEL THE        1,799        

ATTENDANCE OF WITNESSES AND THE PRODUCTION OF ALL KINDS OF BOOKS,  1,800        

RECORDS, PAPERS, AND TANGIBLE THINGS.  UPON THE REFUSAL OF A                    

WITNESS TO BE SWORN OR TO ANSWER ANY QUESTION PUT TO THE WITNESS,  1,802        

OR IF A PERSON DISOBEYS A SUBPOENA, THE LEGISLATIVE INSPECTOR                   

GENERAL SHALL APPLY TO THE COURT OF COMMON PLEAS FOR A CONTEMPT    1,803        

ORDER, AS IN THE CASE OF DISOBEDIENCE TO THE REQUIREMENTS OF A     1,804        

SUBPOENA ISSUED FROM THE COURT OF COMMON PLEAS, OR A REFUSAL TO    1,805        

TESTIFY IN THE COURT.                                                           

      Sec. 126.14.  The release of any money appropriated for the  1,815        

purchase of real estate shall be approved by the controlling       1,816        

board.  The release of money appropriated for all other capital    1,817        

projects is also subject to the approval of the controlling        1,818        

board, except that the director of budget and management may       1,819        

approve the release of money appropriated for specific projects    1,820        

in accordance with the requirements of this section.               1,821        

      Within sixty days after the effective date of any act        1,823        

appropriating money for capital projects, the director shall       1,824        

determine which appropriations are for general projects and which  1,826        

are for specific projects.  Specific projects may include                       

specific higher education projects that are to be funded from      1,827        

general purpose appropriations from the higher education           1,828        

improvements IMPROVEMENT fund created in section 154.21 of the     1,829        

Revised Code.  Upon determining which projects are general and     1,831        

which are specific, the director shall submit to the controlling   1,832        

                                                          42     

                                                                 
board a list that includes a brief description of and the          1,833        

estimated expenditures for each specific project.  The release of  1,834        

money for any specific higher education projects that are to be    1,835        

funded from general purpose appropriations from the higher         1,836        

education improvements IMPROVEMENT fund but that are not included  1,837        

on the list, and the release of money for any specific higher      1,839        

education projects included on the list that will exceed the       1,840        

estimated expenditures by more than ten per cent, are subject to   1,841        

the approval of the controlling board.  THE DIRECTOR MAY CREATE    1,842        

NEW APPROPRIATION LINE ITEMS AND MAKE TRANSFERS OF APPROPRIATIONS  1,843        

TO THEM FOR SPECIFIC HIGHER EDUCATION PROJECTS INCLUDED ON THE     1,844        

LIST THAT ARE TO BE FUNDED FROM GENERAL PURPOSE APPROPRIATIONS     1,845        

FOR BASIC RENOVATIONS THAT ARE MADE FROM THE HIGHER EDUCATION                   

IMPROVEMENT FUND.                                                  1,846        

      Sec. 131.35.  (A)  With respect to the federal funds         1,856        

received into any fund of the state from which transfers may be    1,857        

made under division (D) of section 127.14 of the Revised Code:     1,858        

      (1)  No state agency may make expenditures of any federal    1,860        

funds, whether such funds are advanced prior to expenditure or as  1,861        

reimbursement, unless such expenditures are made pursuant to       1,862        

specific appropriations of the general assembly identifying the    1,864        

federal program that is the source of funds, are authorized        1,865        

pursuant to section 131.38 of the Revised Code, are authorized by  1,866        

the controlling board pursuant to division (A)(5) of this          1,868        

section, or are authorized by an executive order issued in         1,869        

accordance with section 107.17 of the Revised Code, and until an   1,870        

allotment has been approved by the director of budget and          1,871        

management.  All federal funds received by a state agency shall    1,872        

be reported to the director within fifteen days of the receipt of  1,873        

such funds or the notification of award, whichever occurs first.   1,874        

The director shall prescribe the forms and procedures to be used   1,875        

when reporting the receipt of federal funds.                       1,876        

      (2)  If the federal funds received are greater than the      1,878        

amount of such funds appropriated by the general assembly for a    1,879        

                                                          43     

                                                                 
specific purpose, the total appropriation of federal and state     1,880        

funds for such purpose shall remain at the amount designated by    1,881        

the general assembly, except that the expenditure of federal       1,882        

funds received in excess of such specific appropriation may be     1,883        

authorized by the controlling board.                               1,884        

      (3)  To the extent that the expenditure of excess federal    1,886        

funds is authorized, the controlling board may transfer a like     1,887        

amount of general revenue fund appropriation authority from the    1,888        

affected agency to the emergency purposes appropriation of the     1,889        

controlling board, if such action is permitted under federal       1,890        

regulations.                                                       1,891        

      (4)  Additional funds may be created by the controlling      1,893        

board to receive revenues not anticipated in an appropriations     1,894        

act for the biennium in which such new revenues are received.      1,895        

Expenditures from such additional funds may be authorized by the   1,896        

controlling board, but such authorization shall not extend beyond  1,897        

the end of the biennium in which such funds are created.           1,898        

      (5)  Controlling board authorization for a state agency to   1,900        

make an expenditure of federal funds under division (A)(1) of      1,903        

this section constitutes authority for the agency to participate   1,904        

in the federal program providing the funds, and the agency is not  1,905        

required to obtain an executive order under section 107.17 of the  1,906        

Revised Code to participate in the federal program.                             

      (B)  With respect to nonfederal funds received into the      1,908        

waterways safety fund, the wildlife fund, and any fund of the      1,910        

state from which transfers may be made under division (D) of       1,911        

section 127.14 of the Revised Code:                                             

      (1)  No state agency may make expenditures of any such       1,913        

funds unless the expenditures are made pursuant to specific        1,914        

appropriations of the general assembly.                            1,915        

      (2)  If the receipts received into any fund are greater      1,917        

than the amount appropriated, the appropriation for that fund      1,918        

shall remain at the amount designated by the general assembly or   1,919        

as increased and approved by the controlling board.                1,920        

                                                          44     

                                                                 
      (3)  Additional funds may be created by the controlling      1,922        

board to receive revenues not anticipated in an appropriations     1,923        

act for the biennium in which such new revenues are received.      1,924        

Expenditures from such additional funds may be authorized by the   1,925        

controlling board, but such authorization shall not extend beyond  1,926        

the end of the biennium in which such funds are created.           1,927        

      (C)  The controlling board shall not authorize more than     1,929        

ten per cent of additional spending from the occupational          1,930        

licensing and regulatory fund, created in section 4743.05 of the   1,931        

Revised Code, in excess of any appropriation made by the general   1,932        

assembly to a licensing agency except an appropriation for costs   1,933        

related to the examination or reexamination of applicants for a    1,934        

license.  As used in this division, "licensing agency" and         1,935        

"license" have the same meanings as in section 4745.01 of the      1,936        

Revised Code.                                                      1,937        

      Sec. 133.06.  (A)  A school district shall not incur,        1,946        

without a vote of the electors, net indebtedness that exceeds an   1,947        

amount equal to one-tenth of one per cent of its tax valuation     1,948        

except as provided in divisions (G) and (H) of this section and    1,950        

in division (C) of section 3313.372 of the Revised Code.           1,951        

      (B)  Except as provided in divisions (E) and (F) of this     1,953        

section, a school district shall not incur net indebtedness that   1,954        

exceeds an amount equal to nine per cent of its tax valuation.     1,955        

      (C)  A school district shall not submit to a vote of the     1,957        

electors the question of the issuance of securities in an amount   1,958        

that will make the district's net indebtedness after the issuance  1,959        

of the securities exceed an amount equal to four per cent of its   1,960        

tax valuation, unless the superintendent of public instruction,    1,961        

acting under policies adopted by the state board of education,     1,962        

and the tax commissioner, acting under written policies of the     1,963        

commissioner, consent to the submission.  A request for the        1,964        

consents shall be made at least thirty days prior to the election  1,965        

at which the question is to be submitted except that the           1,966        

superintendent of public instruction and the tax commissioner may  1,967        

                                                          45     

                                                                 
waive this thirty-day deadline or grant their consents after the   1,968        

election if the school district shows good cause for such waiver   1,969        

or consent after the election.                                     1,970        

      (D)  In calculating the net indebtedness of a school         1,972        

district none of the following shall be considered:                1,973        

      (1)  Securities issued to acquire school buses and other     1,975        

equipment used in transporting pupils or issued pursuant to        1,976        

division (D) of section 133.10 of the Revised Code;                1,977        

      (2)  Securities issued under division (F) of this section,   1,979        

under section 133.301 of the Revised Code, and, to the extent in   1,980        

excess of the limitation stated in division (B) of this section,   1,981        

under division (E) of this section;                                1,982        

      (3)  Indebtedness resulting from the dissolution of a joint  1,984        

vocational school district under section 3311.217 of the Revised   1,985        

Code, evidenced by outstanding securities of that joint            1,986        

vocational school district;                                        1,987        

      (4)  Loans, evidenced by any securities, received under      1,989        

sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the        1,990        

Revised Code;                                                      1,991        

      (5)  Debt incurred under section 3313.374 of the Revised     1,993        

Code;                                                                           

      (6)  Debt incurred pursuant to division (B)(5) of section    1,996        

3313.37 of the Revised Code to acquire computers and related                    

hardware.                                                                       

      (E)  A school district may become a special needs district   1,998        

as to certain securities as provided in division (E) of this       1,999        

section.                                                           2,000        

      (1)  A board of education, by resolution, may declare its    2,002        

school district to be a special needs district by determining      2,003        

both of the following:                                             2,004        

      (a)  The student population is not being adequately          2,006        

serviced by the existing permanent improvements of the district.   2,007        

      (b)  The district cannot obtain sufficient funds by the      2,009        

issuance of securities within the limitation of division (B) of    2,010        

                                                          46     

                                                                 
this section to provide additional or improved needed permanent    2,011        

improvements in time to meet the needs.                            2,012        

      (2)  The board of education shall certify a copy of that     2,014        

resolution to the superintendent of public instruction with a      2,015        

statistical report showing all of the following:                   2,016        

      (a)  A history of and a projection of the growth of the      2,018        

student population;                                                2,019        

      (b)  The history of and a projection of the growth of the    2,021        

tax valuation;                                                     2,022        

      (c)  The projected needs;                                    2,024        

      (d)  The estimated cost of permanent improvements proposed   2,026        

to meet such projected needs.                                      2,027        

      (3)  The superintendent of public instruction shall certify  2,029        

the district as an approved special needs district if the          2,030        

superintendent finds both of the following:                        2,031        

      (a)  The district does not have available sufficient         2,033        

additional funds from state or federal sources to meet the         2,034        

projected needs.                                                   2,035        

      (b)  The projection of the potential average growth of tax   2,037        

valuation during the next five years, according to the             2,038        

information certified to the superintendent and any other          2,039        

information the superintendent obtains, indicates a likelihood of  2,040        

potential average growth of tax valuation of the district during   2,041        

the next five years of an average of not less than three per cent  2,042        

per year.  The findings and certification of the superintendent    2,043        

shall be conclusive.                                               2,044        

      (4)  An approved special needs district may incur net        2,046        

indebtedness by the issuance of securities in accordance with the  2,047        

provisions of this chapter in an amount that does not exceed an    2,048        

amount equal to the greater of the following:                      2,049        

      (a)  Nine per cent of the sum of its tax valuation plus an   2,051        

amount that is the product of multiplying that tax valuation by    2,052        

the percentage by which the tax valuation has increased over the   2,053        

tax valuation on the first day of the sixtieth month preceding     2,054        

                                                          47     

                                                                 
the month in which its board determines to submit to the electors  2,055        

the question of issuing the proposed securities;                   2,056        

      (b)  Nine per cent of the sum of its tax valuation plus an   2,058        

amount that is the product of multiplying that tax valuation by    2,059        

the percentage, determined by the superintendent of public         2,060        

instruction, by which that tax valuation is projected to increase  2,061        

during the next ten years.                                         2,062        

      (F)  A school district may issue securities for emergency    2,064        

purposes, in a principal amount that does not exceed an amount     2,065        

equal to three per cent of its tax valuation, as provided in this  2,066        

division.                                                          2,067        

      (1)  A board of education, by resolution, may declare an     2,069        

emergency if it determines both of the following:                  2,070        

      (a)  School buildings or other necessary school facilities   2,072        

in the district have been wholly or partially destroyed, or        2,073        

condemned by a constituted public authority, or that such          2,074        

buildings or facilities are partially constructed, or so           2,075        

constructed or planned as to require additions and improvements    2,076        

to them before the buildings or facilities are usable for their    2,077        

intended purpose, or that corrections to permanent improvements    2,078        

are necessary to remove or prevent health or safety hazards.       2,079        

      (b)  Existing fiscal and net indebtedness limitations make   2,081        

adequate replacement, additions, or improvements impossible.       2,082        

      (2)  Upon the declaration of an emergency, the board of      2,084        

education may, by resolution, submit to the electors of the        2,085        

district pursuant to section 133.18 of the Revised Code the        2,086        

question of issuing securities for the purpose of paying the       2,087        

cost, in excess of any insurance or condemnation proceeds          2,088        

received by the district, of permanent improvements to respond to  2,089        

the emergency need.                                                2,090        

      (3)  The procedures for the election shall be as provided    2,092        

in section 133.18 of the Revised Code, except that:                2,093        

      (a)  The form of the ballot shall describe the emergency     2,095        

existing, refer to this division as the authority under which the  2,096        

                                                          48     

                                                                 
emergency is declared, and state that the amount of the proposed   2,097        

securities exceeds the limitations prescribed by division (B) of   2,098        

this section;                                                      2,099        

      (b)  The resolution required by division (B) of section      2,101        

133.18 of the Revised Code shall be certified to the county        2,102        

auditor and the board of elections at least seventy-five days      2,103        

prior to the election;                                             2,104        

      (c)  The county auditor shall advise and, not later than     2,106        

sixty-five days before the election, confirm that advice by        2,107        

certification to, the board of education of the information        2,108        

required by division (C) of section 133.18 of the Revised Code;    2,109        

      (d)  The board of education shall then certify its           2,111        

resolution and the information required by division (D) of         2,112        

section 133.18 of the Revised Code to the board of elections not   2,113        

less than sixty days prior to the election.                        2,114        

      (4)  Notwithstanding division (B) of section 133.21 of the   2,116        

Revised Code, the first principal payment of securities issued     2,117        

under this division may be set at any date not later than sixty    2,118        

months after the earliest possible principal payment otherwise     2,119        

provided for in that division.                                     2,120        

      (G)  The board of education may contract with an architect,  2,122        

professional engineer, or other person experienced in the design   2,123        

and implementation of energy conservation measures for an          2,124        

analysis and recommendations pertaining to installations,          2,125        

modifications of installations, or remodeling that would           2,126        

significantly reduce energy consumption in buildings owned by the  2,127        

district.  The report shall include estimates of all costs of      2,128        

such installations, modifications, or remodeling including costs   2,129        

of design, engineering, installation, maintenance, repairs, and    2,130        

debt service, and estimates of the amounts by which energy         2,131        

consumption and resultant operational and maintenance costs, as    2,132        

defined by the Ohio school facilities commission, would be         2,134        

reduced.                                                                        

      If the board finds after receiving the report that the       2,136        

                                                          49     

                                                                 
amount of money the district would spend on such installations,    2,137        

modifications, or remodeling is not likely to exceed the amount    2,138        

of money it would save in energy and resultant operational and     2,139        

maintenance costs over the ensuing ten FIFTEEN years, the board    2,141        

may submit to the commission a copy of its findings and a request  2,142        

for approval to incur indebtedness to finance the making or        2,144        

modification of installations or the remodeling of buildings for   2,145        

the purpose of significantly reducing energy consumption.          2,146        

      If the commission determines that the board's findings are   2,149        

reasonable, it shall approve the board's request.  Upon receipt    2,150        

of the commission's approval, the district may issue securities    2,152        

without a vote of the electors in a principal amount not to        2,153        

exceed nine-tenths of one per cent of its tax valuation for the    2,154        

purpose of making such installations, or modifications, or         2,155        

remodeling, but the total net indebtedness of the district         2,156        

without a vote of the electors incurred under this and all other   2,157        

sections of the Revised Code shall not exceed one per cent of the  2,158        

district's tax valuation.                                          2,159        

      So long as any securities issued under division (G) of this  2,162        

section remain outstanding, the board of education shall monitor                

the energy consumption and resultant operational and maintenance   2,163        

costs of buildings in which installations or modifications have    2,165        

been made or remodeling has been done pursuant to division (G) of  2,166        

this section and shall maintain and annually update a report       2,168        

documenting the reductions in energy consumption and resultant     2,169        

operational and maintenance cost savings attributable to such      2,170        

installations, modifications, or remodeling.  The report shall be  2,171        

certified by an architect or engineer independent of any person    2,172        

that provided goods or services to the board in connection with    2,173        

the energy conservation measures that are the subject of the       2,174        

report.  The resultant operational and maintenance cost savings    2,175        

shall be certified by the school district treasurer.  The report   2,176        

shall be made available to the commission upon request.            2,177        

      (H)  With the consent of the superintendent of public        2,179        

                                                          50     

                                                                 
instruction, a school district may incur without a vote of the     2,180        

electors net indebtedness that exceeds the amounts stated in       2,181        

divisions (A) and (G) of this section for the purpose of paying    2,183        

costs of permanent improvements, if and to the extent that both    2,184        

of the following conditions are satisfied:                         2,185        

      (1)  The fiscal officer of the school district estimates     2,187        

that receipts of the school district from compensation derived     2,188        

from or under agreements entered into pursuant to section 5709.82  2,189        

of the Revised Code, or distributions under division (C) of        2,190        

section 5709.43 of the Revised Code, or any combination thereof,   2,191        

are, after accounting for any appropriate coverage requirements,   2,192        

sufficient in time and amount, and are committed by the            2,193        

proceedings, to pay the debt charges on the securities issued to   2,194        

evidence that indebtedness and payable from those receipts, and    2,195        

the taxing authority of the district confirms the fiscal           2,196        

officer's estimate, which confirmation is approved by the          2,197        

superintendent of public instruction;                              2,198        

      (2)  The fiscal officer of the school district certifies,    2,200        

and the taxing authority of the district confirms, that the        2,201        

district, at the time of the certification and confirmation,       2,202        

reasonably expects to have sufficient revenue available for the    2,203        

purpose of operating such permanent improvements for their         2,204        

intended purpose upon acquisition or completion thereof, and the   2,205        

superintendent of public instruction approves the taxing           2,206        

authority's confirmation.                                          2,207        

      The maximum maturity of securities issued under division     2,209        

(H) of this section shall be the lesser of twenty years or the     2,210        

maximum maturity calculated under section 133.20 of the Revised    2,211        

Code.                                                              2,212        

      Sec. 715.013.  EXCEPT AS OTHERWISE EXPRESSLY AUTHORIZED BY   2,214        

THE REVISED CODE, NO MUNICIPAL CORPORATION SHALL LEVY A TAX THAT   2,215        

IS THE SAME AS OR SIMILAR TO A TAX LEVIED UNDER CHAPTER 3734.,     2,216        

3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 5707.,     2,217        

5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 5741.,     2,218        

                                                          51     

                                                                 
5743., OR 5749. OF THE REVISED CODE.                               2,219        

      Sec. 718.01.  (A)  As used in this chapter:                  2,228        

      (1)  "Internal Revenue Code" means the Internal Revenue      2,230        

Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.             2,231        

      (2)  "Schedule C" means internal revenue service schedule C  2,233        

filed by a taxpayer pursuant to the Internal Revenue Code.         2,234        

      (3)  "Form 2106" means internal revenue service form 2106    2,236        

filed by a taxpayer pursuant to the Internal Revenue Code.         2,237        

      (4)  "Intangible income" means income of any of the          2,239        

following types:  income yield, interest, dividends, or other      2,240        

income arising from the ownership, sale, exchange, or other        2,241        

disposition of intangible property including, but not limited to,  2,242        

investments, deposits, money, or credits as those terms are                     

defined in Chapter 5701. of the Revised Code.                      2,243        

      (B)  No municipal corporation with respect to that income    2,245        

which it may tax shall tax such income at other than a uniform     2,246        

rate.                                                                           

      (C)  No municipal corporation shall levy a tax on income at  2,248        

a rate in excess of one per cent without having obtained the       2,249        

approval of the excess by a majority of the electors of the        2,250        

municipality voting on the question at a general, primary, or      2,251        

special election.  The legislative authority of the municipal      2,252        

corporation shall file with the board of elections at least                     

seventy-five days before the day of the election a copy of the     2,253        

ordinance together with a resolution specifying the date the       2,254        

election is to be held and directing the board of elections to     2,255        

conduct the election.  The ballot shall be in the following form:  2,256        

"Shall the Ordinance providing for a ... per cent levy on income   2,257        

for (Brief description of the purpose of the proposed levy) be                  

passed?                                                            2,258        

      FOR THE INCOME TAX                                           2,260        

      AGAINST THE INCOME TAX"                                      2,262        

      In the event of an affirmative vote, the proceeds of the     2,264        

levy may be used only for the specified purpose.                   2,265        

                                                          52     

                                                                 
      (D)(1)  Except as otherwise provided in division (D)(2) of   2,267        

this section, no municipal corporation shall exempt from a tax on  2,268        

income, compensation for personal services of individuals over     2,269        

eighteen years of age or the net profit from a business or         2,270        

profession.                                                                     

      (2)  The legislative authority of a municipal corporation    2,272        

may, by ordinance or resolution, exempt from a tax on income any   2,273        

compensation arising from the grant, sale, exchange, or other      2,274        

disposition of a stock option; the exercise of a stock option; or  2,275        

the sale, exchange, or other disposition of stock purchased under  2,276        

a stock option.                                                                 

      (E)  Nothing in this section shall prevent a municipal       2,278        

corporation from permitting lawful deductions as prescribed by     2,279        

ordinance.  If a taxpayer's taxable income includes income         2,280        

against which the taxpayer has taken a deduction for federal       2,281        

income tax purposes as reportable on the taxpayer's form 2106,     2,282        

and against which a like deduction has not been allowed by the                  

municipal corporation, the municipal corporation shall deduct      2,283        

from the taxpayer's taxable income an amount equal to the          2,284        

deduction shown on such form allowable against such income, to     2,285        

the extent not otherwise so allowed as a deduction by the          2,286        

municipal corporation.  In the case of a taxpayer who has a net                 

profit from a business or profession that is operated as a sole    2,287        

proprietorship, no municipal corporation may tax or use as the     2,288        

base for determining the amount of the net profit that shall be    2,289        

considered as having a taxable situs in the municipal              2,290        

corporation, a greater amount than the net profit reported by the               

taxpayer on schedule C filed in reference to the year in question  2,291        

as taxable income from such sole proprietorship, except as         2,292        

otherwise specifically provided by ordinance or regulation.        2,293        

      (F)  No municipal corporation shall tax any of the           2,295        

following:                                                                      

      (1)  The military pay or allowances of members of the armed  2,297        

forces of the United States and of members of their reserve        2,298        

                                                          53     

                                                                 
components, including the Ohio national guard;                     2,299        

      (2)  The income of religious, fraternal, charitable,         2,301        

scientific, literary, or educational institutions to the extent    2,302        

that such income is derived from tax-exempt real estate,           2,303        

tax-exempt tangible or intangible property, or tax-exempt          2,304        

activities;                                                                     

      (3)  Except as otherwise provided in division (G) of this    2,306        

section, intangible income;                                        2,307        

      (4)  Compensation paid under section 3501.28 or 3501.36 of   2,309        

the Revised Code to a person serving as a precinct election        2,310        

official, to the extent that such compensation does not exceed     2,311        

one thousand dollars annually.  Such compensation in excess of     2,312        

one thousand dollars may be subjected to taxation by a municipal                

corporation.  A municipal corporation shall not require the payer  2,313        

of such compensation to withhold any tax from that compensation.   2,314        

      (5)  Compensation paid to an employee of a transit           2,316        

authority, regional transit authority, or regional transit         2,317        

commission created under Chapter 306. of the Revised Code for      2,318        

operating a transit bus or other motor vehicle for the authority   2,319        

or commission in or through the municipal corporation, unless the               

bus or vehicle is operated on a regularly scheduled route, the     2,320        

operator is subject to such a tax by reason of residence or        2,321        

domicile in the municipal corporation, or the headquarters of the  2,322        

authority or commission is located within the municipal            2,323        

corporation.                                                                    

      (6)  THE INCOME OF A PUBLIC UTILITY WHEN THAT PUBLIC         2,325        

UTILITY IS SUBJECT TO THE TAX LEVIED UNDER SECTION 5727.30 OF THE  2,326        

REVISED CODE.                                                      2,327        

      (G)  Any municipal corporation that taxes any type of        2,329        

intangible income on March 29, 1988, pursuant to Section 3 of      2,330        

Amended Substitute Senate Bill No. 238 of the 116th general        2,331        

assembly, may continue to tax that type of income after 1988 if a  2,332        

majority of the electors of the municipal corporation voting on    2,333        

the question of whether to permit the taxation of that type of                  

                                                          54     

                                                                 
intangible income after 1988 vote in favor thereof at an election  2,334        

held on November 8, 1988.                                          2,335        

      (H)  Nothing in this section or section 718.02 of the        2,337        

Revised Code, shall authorize the levy of any tax on income which  2,338        

a municipal corporation is not authorized to levy under existing   2,339        

laws or shall require a municipal corporation to allow a           2,340        

deduction from taxable income for losses incurred from a sole      2,341        

proprietorship or partnership.                                                  

      Sec. 3313.646.  (A)  The board of education of a school      2,350        

district, except a cooperative education district established      2,351        

pursuant to section 3311.521 of the Revised Code, may establish    2,352        

and operate a preschool program except that no such program shall  2,353        

be established after March 17, 1989, unless both of the following  2,354        

apply at the time the program is established:                      2,355        

      (1)  The board has demonstrated a need for the program.      2,357        

      (2)  Unless it is a cooperative education district           2,359        

established pursuant to divisions (A) to (C) of section 3311.52    2,360        

of the Revised Code, the school district is eligible for moneys    2,361        

distributed by the department of education pursuant to section     2,362        

3317.029 of the Revised Code.  A board may use school funds in     2,365        

support of preschool programs.  The board shall maintain,          2,366        

operate, and admit children to any such program pursuant to rules  2,367        

adopted by such board and the rules of the state board of          2,368        

education adopted under sections 3301.52 to 3301.57 of the         2,369        

Revised Code.                                                                   

      A board of education may establish fees or tuition, which    2,371        

may be graduated in proportion to family income, for               2,372        

participation in a preschool program.  In cases where payment of   2,373        

fees or tuition would create a hardship for the child's parent or  2,374        

guardian, the board may waive any such fees or tuition.            2,375        

      (B)  No board of education that is not receiving funds       2,377        

under the "Head Start Act," 95 Stat. 489 (1981), 42 U.S.C.A.       2,378        

9831, on March 17, 1989, shall compete for funds under the "Head   2,379        

Start Act" with any grantee receiving funds under that act.        2,380        

                                                          55     

                                                                 
      (C)  A board of education may contract with any of the       2,382        

following preschool providers to provide preschool programs,       2,383        

other than programs for units described by division (E) DIVISIONS  2,384        

(B) AND (C) of section 3317.05 of the Revised Code, for children   2,386        

of the school district:                                            2,387        

      (1)  Any organization receiving funds under the "Head Start  2,389        

Act";                                                              2,390        

      (2)  Any nonsectarian eligible nonpublic school as defined   2,392        

in division (H) of section 3301.52 of the Revised Code;            2,393        

      (3)  Any child day-care provider licensed under Chapter      2,395        

5104. of the Revised Code.                                         2,396        

      Boards may contract to provide preschool programs only with  2,398        

such organizations whose staff meet the requirements of rules      2,399        

adopted under section 3301.53 of the Revised Code or those of the  2,400        

child development associate credential established by the          2,401        

national association for the education of young children.          2,402        

      (D)  A contract entered into under division (C) of this      2,404        

section may provide for the board of education to lease school     2,405        

facilities to the preschool provider or to furnish                 2,406        

transportation, utilities, or staff for the preschool program.     2,407        

      (E)  The treasurer of any board of education operating a     2,409        

preschool program pursuant to this section shall keep an account   2,410        

of all funds used to operate the program in the same manner as he  2,411        

would any other funds of the district pursuant to this chapter.    2,412        

      Sec. 3313.841.  The boards of education and governing        2,421        

boards of two or more city, local, joint vocational, or exempted   2,422        

village school districts or educational service centers may        2,423        

contract in accordance with the terms of this section for the      2,425        

sharing on a cooperative basis of the services of supervisory      2,426        

teachers, special instruction teachers, special education          2,427        

teachers, and other licensed personnel necessary to conduct        2,428        

approved cooperative classes of the type described in division     2,429        

(B) of section 3317.05 of the Revised Code for handicapped pupils  2,431        

FOR SPECIAL EDUCATION AND RELATED SERVICES AND GIFTED EDUCATION.   2,432        

                                                          56     

                                                                 
      The boards of two or more districts or service centers       2,434        

desiring to enroll students in such classes shall each adopt       2,435        

resolutions indicating such desire and designating one of the      2,436        

participating districts or service centers as the funding agent    2,437        

for purposes of this section.  The district or service center      2,439        

designated as the funding agent shall enter into an employment     2,440        

contract with each licensed teacher whose services are to be       2,442        

shared among the participating districts and service centers.  In               

turn, the funding agent shall enter into contracts with each of    2,443        

the districts and service centers which have adopted resolutions   2,444        

agreeing to participate in the cooperative program upon terms      2,446        

agreed to by all parties to such contract.  Such contracts         2,447        

between districts and service centers shall set forth the          2,448        

services to be provided by the licensed teacher employed by the    2,449        

funding agent whose services are to be shared by the                            

participating districts and service centers and the basis for      2,450        

computing the amounts to be paid for such services to the funding  2,451        

agent by the participating districts and service centers.          2,452        

      For purposes of division (B) of section 3317.05 of the       2,456        

Revised Code, the funding agent shall count all pupils enrolled    2,457        

in cooperative programs for handicapped pupils as pupils enrolled  2,458        

in such programs in the funding agent district.  Upon receipt of   2,459        

payment for such programs, the funding agent district shall        2,460        

credit the account of districts participating in the cooperative   2,461        

program for the amounts due under contracts entered into under     2,462        

the terms of this section in proportion to the number of resident  2,463        

students enrolled in the cooperative program from each             2,464        

participating district and service center.                                      

      In determining the terms of the contract entered into by     2,466        

the funding agent district or service center and the               2,467        

participating districts and service centers, the superintendent    2,469        

of schools of each participating board of education and governing  2,470        

board shall serve as a committee which shall recommend such terms  2,471        

to such boards.                                                                 

                                                          57     

                                                                 
      Sec. 3313.842.  The boards of education of any two or more   2,480        

school districts may enter into an agreement for joint or          2,481        

cooperative establishment and operation of any educational         2,482        

program including any class, course, or program that may be        2,483        

included in a school district's graded course of study and staff   2,484        

development programs for teaching and nonteaching school           2,485        

employees.  Each school district that is party to such an          2,486        

agreement may contribute funds of the district in support of the   2,487        

agreement and for the establishment and operation of any           2,488        

educational program established under the agreement.  The          2,489        

agreement shall designate one of the districts as the district     2,490        

responsible for receiving and disbursing the funds contributed by  2,491        

the districts that are parties to the agreement.                   2,492        

      A student participating in an educational program            2,494        

established pursuant to this section shall be included in the      2,495        

formula ADM certified under section 3317.03 of the Revised Code    2,498        

of the district in which the student is enrolled.                  2,499        

      Sec. 3313.98.  Notwithstanding division (D) of section       2,508        

3311.19 and division (D) of section 3311.52 of the Revised Code,   2,509        

the provisions of this section and sections 3313.981 to 3313.983   2,510        

of the Revised Code that apply to a city school district do not    2,511        

apply to a joint vocational or cooperative education school        2,512        

district unless expressly specified.                               2,513        

      (A)  As used in this section and sections 3313.981 to        2,515        

3313.983 of the Revised Code:                                      2,516        

      (1)  "Parent" means either of the natural or adoptive        2,518        

parents of a student, except under the following conditions:       2,519        

      (a)  When the marriage of the natural or adoptive parents    2,521        

of the student has been terminated by a divorce, dissolution of    2,522        

marriage, or annulment or the natural or adoptive parents of the   2,523        

student are living separate and apart under a legal separation     2,524        

decree and the court has issued an order allocating the parental   2,525        

rights and responsibilities with respect to the student, "parent"  2,526        

means the residential parent as designated by the court except     2,527        

                                                          58     

                                                                 
that "parent" means either parent when the court issues a shared   2,528        

parenting decree.                                                  2,529        

      (b)  When a court has granted temporary or permanent         2,531        

custody of the student to an individual or agency other than       2,532        

either of the natural or adoptive parents of the student,          2,533        

"parent" means the legal custodian of the child.                   2,534        

      (c)  When a court has appointed a guardian for the student,  2,536        

"parent" means the guardian of the student.                        2,537        

      (2)  "Native student" means a student entitled under         2,539        

section 3313.64 or 3313.65 of the Revised Code to attend school    2,540        

in a district adopting a resolution under this section.            2,541        

      (3)  "Adjacent district" means a city, exempted village, or  2,544        

local school district having territory that abuts the territory    2,545        

of a district adopting a resolution under this section.                         

      (4)  "Adjacent district student" means a student entitled    2,547        

under section 3313.64 or 3313.65 of the Revised Code to attend     2,548        

school in an adjacent district.                                    2,549        

      (5)  "Adjacent district joint vocational student" means an   2,553        

adjacent district student who enrolls in a city, exempted          2,555        

village, or local school district pursuant to this section and     2,556        

who also enrolls in a joint vocational school district that does   2,557        

not contain the territory of the district for which that student   2,558        

is a native student and does contain the territory of the city,    2,559        

exempted village, or local district in which the student enrolls.  2,560        

      (6)  "Adjusted formula amount" means the formula amount      2,563        

defined in division (B) of section 3317.02 of the Revised Code     2,564        

multiplied by the cost-of-doing-business factor for a district     2,567        

defined in division (N) of section 3317.02 of the Revised Code.    2,568        

      (7)  "Poverty line" means the poverty line established by    2,570        

the director of the United States office of management and budget  2,571        

as revised by the director of the office of community services in  2,572        

accordance with section 673(2) of the "Community Services Block    2,573        

Grant Act," 95 Stat. 1609, 42 U.S.C.A. 9902, as amended.           2,574        

      (8)  "IEP" means an individualized education program         2,576        

                                                          59     

                                                                 
defined by division (E) of section 3323.01 of the Revised Code.    2,577        

      (9)  "Other district" means a city, exempted village, or     2,580        

local school district having territory outside of the territory    2,581        

of a district adopting a resolution under this section.            2,582        

      (10)  "Other district student" means a student entitled      2,584        

under section 3313.64 or 3313.65 of the Revised Code to attend     2,587        

school in an other district.                                       2,588        

      (11)  "Other district joint vocational student" means a      2,590        

student who is enrolled in any city, exempted village, or local    2,591        

school district and who also enrolls in a joint vocational school  2,593        

district that does not contain the territory of the district for   2,594        

which that student is a native student in accordance with a        2,595        

policy adopted under section 3313.983 of the Revised Code.         2,596        

      (B)(1)  The board of education of each city, local, and      2,598        

exempted village school district may SHALL adopt a resolution      2,599        

ESTABLISHING FOR THE SCHOOL DISTRICT ONE OF THE FOLLOWING          2,600        

POLICIES:                                                                       

      (a)  A POLICY that entirely prohibits the enrollment of      2,603        

students from adjacent districts or other districts, other than    2,604        

students for whom tuition is paid in accordance with section       2,606        

3317.08 of the Revised Code,;                                                   

      (b)  A POLICY that permits enrollment of students from all   2,609        

adjacent districts in accordance with a policy STATEMENTS          2,610        

contained in the resolution, or;                                   2,612        

      (c)  A POLICY that permits enrollment of students from all   2,615        

other districts in accordance with a policy STATEMENTS contained   2,616        

in the resolution.                                                              

      (2)  A policy permitting enrollment of students from         2,618        

adjacent or from other districts, as applicable, shall provide     2,620        

for all of the following:                                          2,621        

      (1)(a)  Application procedures, including deadlines for      2,623        

application and for notification of students and the               2,624        

superintendent of the applicable district whenever an adjacent or  2,626        

other district student's application is approved.                  2,628        

                                                          60     

                                                                 
      (2)(b)  Procedures for admitting adjacent or other district  2,630        

applicants free of any tuition obligation to the district's        2,632        

schools, including, but not limited to:                            2,633        

      (a)(i)  The establishment of district capacity limits by     2,635        

grade level, school building, and education program;               2,636        

      (b)(ii)  A requirement that all native students wishing to   2,638        

be enrolled in the district will be enrolled and that any          2,639        

adjacent or other district students previously enrolled in the     2,641        

district shall receive preference over first-time applicants;      2,642        

      (c)(iii)  Procedures to ensure that an appropriate racial    2,644        

balance is maintained in the district schools.                     2,645        

      (C)  Except as provided in section 3313.982 of the Revised   2,647        

Code, the procedures for admitting adjacent or other district      2,648        

students, as applicable, shall not include:                        2,649        

      (1)  Any requirement of academic ability, or any level of    2,651        

athletic, artistic, or other extracurricular skills;               2,652        

      (2)  Limitations on admitting applicants because of          2,654        

handicapping conditions, except that a board may refuse to admit   2,655        

a student receiving services under Chapter 3323. of the Revised    2,657        

Code, if the services described in the student's IEP are not       2,658        

available in the district's schools;                                            

      (3)  A requirement that the student be proficient in the     2,660        

English language;                                                  2,661        

      (4)  Rejection of any applicant because the student has      2,663        

been subject to disciplinary proceedings, except that if an        2,664        

applicant has been suspended or expelled by the student's          2,666        

district for ten consecutive days or more in the term for which    2,667        

admission is sought or in the term immediately preceding the term  2,668        

for which admission is sought, the procedures may include a        2,669        

provision denying admission of such applicant.                     2,670        

      (D)(1)  Each school board permitting only enrollment of      2,672        

adjacent district students shall provide information about the     2,673        

policy adopted under this section, including the application       2,674        

procedures and deadlines, to the superintendent and the board of   2,675        

                                                          61     

                                                                 
education of each adjacent district and, upon request, to the      2,676        

parent of any adjacent district student.                           2,677        

      (2)  Each school board permitting enrollment of other        2,679        

district students shall provide information about the policy       2,680        

adopted under this section, including the application procedures   2,681        

and deadlines, upon request, to the board of education of any      2,682        

other school district or to the parent of any student anywhere in  2,684        

the state.                                                                      

      (E)  Any school board shall accept all credits toward        2,686        

graduation earned in adjacent or other district schools by an      2,687        

adjacent or other district student or a native student.            2,688        

      (F)(1)  No board of education may adopt a policy             2,690        

discouraging or prohibiting its native students from applying to   2,691        

enroll in the schools of an adjacent or any other district that    2,692        

has adopted a policy permitting such enrollment, except that:      2,693        

      (a)  A district may object to the enrollment of a native     2,695        

student in an adjacent or other district in order to maintain an   2,696        

appropriate racial balance.                                        2,697        

      (b)  The board of education of a district receiving funds    2,699        

under 64 Stat. 1100 (1950), 20 U.S.C.A. 236 et seq., as amended,   2,700        

may adopt a resolution objecting to the enrollment of its native   2,701        

students in adjacent or other districts if at least ten per cent   2,702        

of its students are included in the determination of the United    2,703        

States secretary of education made under section 20 U.S.C.A.       2,704        

238(a).                                                                         

      (2)  If a board objects to enrollment of native students     2,706        

under this division, any adjacent or other district shall refuse   2,707        

to enroll such native students unless tuition is paid for the      2,709        

students in accordance with section 3317.08 of the Revised Code.   2,710        

An adjacent or other district enrolling such students may not      2,711        

receive funding for those students in accordance with section      2,712        

3313.981 of the Revised Code.                                      2,713        

      (G)  The state board of education shall monitor school       2,715        

districts to ensure compliance with this section and the           2,716        

                                                          62     

                                                                 
districts' policies.  The board may adopt rules requiring uniform  2,717        

application procedures, deadlines for application, notification    2,718        

procedures, and record-keeping requirements for all school boards  2,719        

that adopt policies permitting the enrollment of adjacent or       2,720        

other district students, as applicable.  If the state board        2,722        

adopts such rules, no school board shall adopt a policy that       2,723        

conflicts with those rules.                                        2,724        

      (H)  A resolution adopted by a board of education under      2,726        

this section that entirely prohibits the enrollment of students    2,727        

from adjacent and from other school districts does not abrogate    2,728        

any agreement entered into under section 3313.841 or 3313.92 of    2,730        

the Revised Code or any contract entered into under section        2,731        

3313.90 of the Revised Code between the board of education         2,732        

adopting the resolution and the board of education of any          2,733        

adjacent or other district or prohibit these boards of education   2,735        

from entering into any such agreement or contract.                 2,736        

      (I)  Nothing in this section shall be construed to permit    2,738        

or require the board of education of a city, exempted village, or  2,739        

local school district to exclude any native student of the         2,740        

district from enrolling in the district.                           2,741        

      Sec. 3314.03.  (A)  Each contract entered into under         2,750        

section 3314.02 of the Revised Code between a sponsor and the      2,751        

governing authority of a community school shall specify the        2,752        

following:                                                                      

      (1)  That the school shall be established as a nonprofit     2,754        

corporation established under Chapter 1702. of the Revised Code;   2,755        

      (2)  The education program of the school, including the      2,757        

school's mission, the characteristics of the students the school   2,758        

is expected to attract, the ages and grades of students, and the   2,759        

focus of the curriculum;                                           2,760        

      (3)  The academic goals to be achieved and the method of     2,762        

measurement that will be used to determine progress toward those   2,763        

goals, which shall include the statewide proficiency tests;        2,764        

      (4)  Performance standards by which the success of the       2,766        

                                                          63     

                                                                 
school will be evaluated by the sponsor;                           2,767        

      (5)  The admission standards of section 3314.06 of the       2,769        

Revised Code;                                                      2,770        

      (6)  Dismissal procedures;                                   2,772        

      (7)  The ways by which the school will achieve racial and    2,774        

ethnic balance reflective of the community it serves;              2,775        

      (8)  Requirements and procedures for program and ANNUAL      2,777        

financial audits, including audits by the auditor of state and     2,778        

the department of education.  The contract shall require           2,779        

financial records of the school to be maintained in the same       2,781        

manner as are financial records of school districts, pursuant to                

rules of the auditor of state AND THE ANNUAL AUDITS SHALL BE       2,782        

CONDUCTED IN THE SAME MANNER AS AUDITS OF SCHOOL DISTRICTS.        2,783        

      (9)  The facility to be used and its location;               2,785        

      (10)  Qualifications of teachers, including a requirement    2,787        

that the school's classroom teachers be licensed in accordance     2,788        

with sections 3319.22 to 3319.31 of the Revised Code, except that  2,789        

a community school may engage noncertificated persons to teach up  2,791        

to twelve hours per week pursuant to section 3319.301 of the       2,792        

Revised Code;                                                                   

      (11)  That the school will comply with the following         2,794        

requirements:                                                      2,795        

      (a)  The school will provide learning opportunities to a     2,797        

minimum of twenty-five students for a minimum of nine hundred      2,799        

twenty hours per school year;                                                   

      (b)  The governing authority will purchase liability         2,802        

insurance, or otherwise provide for the potential liability of     2,803        

the school;                                                                     

      (c)  The school will be nonsectarian in its programs,        2,806        

admission policies, employment practices, and all other            2,807        

operations, and will not be operated by a sectarian school or      2,808        

religious institution;                                                          

      (d)  The school will comply with sections 9.90, 9.91,        2,810        

109.65, 121.22, 149.43, 2151.358, 2151.421, 2313.18, 3301.0710,    2,812        

                                                          64     

                                                                 
3301.0711, 3301.0714, 3313.50, 3313.643, 3313.66, 3313.661,        2,813        

3313.662, 3313.67, 3313.672, 3313.673, 3313.69, 3313.71, 3313.80,  2,814        

3313.96, 3319.321, 3319.39, 3321.01, 3327.10, 4111.17, and         2,815        

4113.52 and Chapters 117., 1347., 2744., 4112., 4123., 4141., and  2,816        

4167. of the Revised Code as if it were a school district;         2,817        

      (e)  The school shall comply with Chapter 102. of the        2,819        

Revised Code except that nothing in that chapter shall prohibit a  2,820        

member of the school's governing board from also being an          2,821        

employee of the school and nothing in that chapter or section      2,822        

2921.42 of the Revised Code shall prohibit a member of the         2,823        

school's governing board from having an interest in a contract     2,824        

into which the governing board enters;                             2,825        

      (f)  The school will comply with sections 3313.61 and        2,827        

3313.611 of the Revised Code, except that the requirement in       2,829        

those sections that a person must successfully complete the        2,830        

curriculum in any high school prior to receiving a high school     2,831        

diploma may be met by completing the curriculum adopted by the                  

governing authority of the community school rather than the        2,833        

curriculum specified in Title XXXIII of the Revised Code or any    2,834        

rules of the state board of education;                                          

      (g)  The school governing authority will submit an annual    2,836        

report of its activities and progress in meeting the goals and     2,837        

standards of divisions (A)(3) and (4) of this section and its      2,838        

financial status to the sponsor and to, the parents of all         2,839        

students enrolled in the school, AND THE LEGISLATIVE OFFICE OF     2,840        

EDUCATION OVERSIGHT.                                                            

      (12)  Arrangements for providing health and other benefits   2,842        

to employees;                                                      2,843        

      (13)  The length of the contract, which shall begin at the   2,845        

beginning of an academic year and shall not exceed three FIVE      2,846        

years;                                                                          

      (14)  The governing authority of the school, which shall be  2,848        

responsible for carrying out the provisions of the contract;       2,849        

      (15)  A financial plan detailing an estimated school budget  2,851        

                                                          65     

                                                                 
for each year of the period of the contract and specifying the     2,853        

total estimated per pupil expenditure amount for each such year.   2,854        

The plan shall specify for each year the base formula amount that  2,856        

will be used for purposes of funding calculations under section                 

3314.08 of the Revised Code.  This base formula amount for any     2,857        

year shall not exceed the formula amount defined under section     2,859        

3317.02 of the Revised Code.  The plan may also specify for any    2,861        

year a percentage figure to be used for reducing the per pupil                  

amount of disadvantaged pupil impact aid calculated pursuant to    2,863        

section 3317.029 of the Revised Code the school is to receive      2,865        

that year under section 3314.08 of the Revised Code.               2,866        

      (16)  Requirements and procedures regarding the disposition  2,868        

of employees of the school in the event the contract is            2,869        

terminated or not renewed pursuant to section 3314.07 of the       2,870        

Revised Code;                                                                   

      (17)  Whether the school is to be created by converting all  2,873        

or part of an existing public school or is to be a new start-up                 

school, and if it is a converted public school, specification of   2,874        

any duties or responsibilities of an employer that the board of    2,875        

education that operated the school before conversion is            2,876        

delegating to the governing board of the community school with     2,877        

respect to all or any specified group of employees provided the                 

delegation is not prohibited by a collective bargaining agreement  2,878        

applicable to such employees;                                      2,879        

      (18)  Provisions establishing procedures for resolving       2,881        

disputes or differences of opinion between the sponsor and the     2,882        

governing authority of the community school;                       2,883        

      (19)  THAT THE SCHOOL SHALL BE THE CUSTODIAN OF ALL MONEY    2,885        

RECEIVED DURING THE FIRST FULL FISCAL YEAR OF ITS OPERATION AND    2,886        

DURING SUBSEQUENT YEARS UNLESS ANOTHER CUSTODIAN IS DESIGNATED IN  2,887        

THE CONTRACT TO RECEIVE AND MAINTAIN THE FIRST-YEAR REVENUE.       2,888        

      (B)  The community school shall also submit to the sponsor   2,890        

a comprehensive plan for the school.  The plan shall specify the   2,892        

following:                                                                      

                                                          66     

                                                                 
      (1)  The process by which the governing authority of the     2,894        

school will be selected in the future;                             2,895        

      (2)  The management and administration of the school;        2,897        

      (3)  If the community school is a currently existing public  2,900        

school, alternative arrangements for current public school         2,901        

students who choose not to attend the school and teachers who      2,902        

choose not to teach in the school after conversion;                2,903        

      (4)  The instructional program and educational philosophy    2,905        

of the school;                                                     2,906        

      (5)  Internal financial controls.                            2,908        

      (C)  A contract entered into under section 3314.02 of the    2,911        

Revised Code between a sponsor and the governing authority of a    2,913        

community school may provide for the community school governing                 

authority to make payments to the sponsor, which is hereby         2,914        

authorized to receive such payments as set forth in the contract   2,915        

between the governing authority and the sponsor.                   2,916        

      Sec. 3314.07.  (A)  The expiration of the contract for a     2,925        

community school between a sponsor and a school shall be the date  2,927        

provided in the contract.  A successor contract may SHALL be       2,928        

entered into unless the contract is terminated or not renewed                   

pursuant to this section.                                          2,930        

      (B)(1)  A sponsor may choose not to renew a contract at its  2,932        

expiration or may choose to terminate a contract prior to its      2,933        

expiration for any of the following reasons:                       2,934        

      (a)  Failure to meet student performance requirements        2,937        

stated in the contract;                                                         

      (b)  Failure to meet generally accepted standards of fiscal  2,939        

management;                                                        2,940        

      (c)  Violation of any provision of the contract or           2,943        

applicable state or federal law;                                                

      (d)  Other good cause.                                       2,945        

      A termination shall be effective only at the conclusion of   2,947        

a school year.                                                     2,948        

      (2)  At least sixty ONE HUNDRED EIGHTY days prior to the     2,950        

                                                          67     

                                                                 
termination or nonrenewal of a contract, the sponsor shall notify  2,951        

the school of the proposed action in writing.  The notice shall    2,952        

include the reasons for the proposed action in detail and that     2,953        

the school may, within fourteen days of receiving the notice,      2,954        

request an informal hearing before the sponsor.  Such request      2,955        

must be in writing.                                                2,956        

      (3)  A decision by the sponsor to terminate a contract may   2,958        

be appealed to the state board of education.  The decision by the  2,959        

state board pertaining to an appeal under this division is final.  2,961        

      (C)  A child attending a community school whose contract     2,963        

has been terminated or nonrenewed or that closes for any reason    2,965        

shall be admitted to the schools of the district in which the      2,966        

child is entitled to attend under section 3313.64 or 3313.65 of    2,967        

the Revised Code.  Any deadlines established for the purpose of    2,968        

admitting students under section 3313.97 or 3313.98 shall be       2,969        

waived for students to whom this division pertains.                2,970        

      (D)  A sponsor of a community school and the officers,       2,972        

directors, or employees of such a sponsor are not liable in        2,973        

damages in a tort or other civil action for harm allegedly         2,974        

arising from either of the following:                                           

      (1)  A failure of the community school or any of its         2,976        

officers, directors, or employees to perform any statutory or      2,977        

common law duty or responsibility or any other legal obligation;   2,978        

      (2)  An action or omission of the community school or any    2,980        

of its officers, directors, or employees that results in harm.     2,981        

      (E)  As used in this section:                                2,983        

      (1)  "Harm" means injury, death, or loss to person or        2,985        

property.                                                                       

      (2)  "Tort action" means a civil action for damages for      2,987        

injury, death, or loss to person or property other than a civil    2,988        

action for damages for a breach of contract or another agreement   2,989        

between persons.                                                                

      Sec. 3314.08.  (A)  As used in this section:                 2,998        

      (1)  "Base formula amount" means the amount specified as     3,001        

                                                          68     

                                                                 
such in a community school's financial plan for a school year      3,002        

pursuant to division (A)(15) of section 3314.03 of the Revised     3,003        

Code.                                                                           

      (2)  "Cost-of-doing-business factor" has the same meaning    3,006        

as in section 3317.02 of the Revised Code.                         3,007        

      (3)  "IEP" means an individualized education program         3,010        

defined by division (E) of section 3323.01 of the Revised Code.    3,011        

      (4)  "Actual AVERAGE COUNTY cost" means the actual cost,     3,014        

AVERAGED AMONG SCHOOL DISTRICTS WITHIN A COUNTY, of providing      3,015        

special education and related services to a special education      3,016        

student pursuant to an IEP in the school district where that       3,018        

student is entitled to attend school pursuant to section 3313.64   3,019        

or 3313.65 of the Revised Code SIMILARLY HANDICAPPED CHILDREN, as  3,020        

calculated in a manner acceptable to the superintendent of public  3,022        

instruction.                                                                    

      (5)  "DPIA reduction factor" means the percentage figure,    3,025        

if any, specified for reducing the per pupil amount of             3,026        

disadvantaged pupil impact aid a community school is entitled to   3,027        

receive pursuant to division (D)(3) of this section in any year,   3,029        

as specified in the school's financial plan for the year pursuant  3,030        

to division (A)(15) of section 3314.03 of the Revised Code.        3,031        

      (B)  The state board of education shall adopt rules          3,033        

requiring both of the following:                                   3,034        

      (1)  The board of education of each city, exempted village,  3,036        

and local school district to annually report the number of         3,037        

students entitled to attend school in the district pursuant to     3,038        

section 3313.64 or 3313.65 of the Revised Code who are enrolled    3,039        

in grades one through twelve and one-half of the kindergarten      3,040        

students enrolled in a community school established under this     3,041        

chapter and for each child the community school in which the       3,042        

child is enrolled.  In addition, for each such child receiving     3,043        

special education and related services enrolled in grades                       

kindergarten through twelve or in a preschool handicapped unit in  3,044        

a community school pursuant to an IEP, the board shall report the  3,046        

                                                          69     

                                                                 
actual AVERAGE COUNTY cost for such child and, if.  IF the         3,048        

district receives disadvantaged pupil impact aid pursuant to       3,051        

DIVISION (B) OR DIVISIONS (C) AND (E) OF section 3317.029 of the   3,053        

Revised Code, it ALSO shall report the amount received for each    3,055        

such child.                                                                     

      (2)  The governing authority of each community school        3,057        

established under this chapter to annually report the number of    3,058        

students enrolled in grades one through twelve and one-half the    3,059        

number of kindergarten students in the school who are not          3,061        

receiving special education and related services pursuant to an    3,062        

IEP; the number of enrolled students in grades one through twelve  3,064        

and one-half the number of kindergarten students who are           3,065        

receiving special education and related services pursuant to an    3,067        

IEP; the number of enrolled preschool handicapped students         3,068        

receiving special education services in a state-funded unit; the   3,069        

community school's base formula amount; and the city, exempted     3,071        

village, or local school district in which the school is located.  3,072        

Each governing authority shall also report any DPIA reduction      3,073        

factor that applies to a school year.                                           

      (C)  From the payments made to a city, exempted village, or  3,075        

local school district under Chapter 3317. of the Revised Code      3,076        

and, if necessary, sections 321.14 and 323.156 of the Revised      3,079        

Code, the department of education shall annually subtract all of   3,080        

the following:                                                                  

      (1)  An amount equal to the sum of the amounts obtained      3,082        

when, for each community school where the district's students are  3,083        

enrolled, the number of the district's students reported under     3,084        

division (B)(2) of this section who are enrolled in grades one     3,085        

through twelve and one-half the number of kindergarten students    3,086        

in that community school and are not receiving special education   3,088        

and related services pursuant to an IEP is multiplied by the base  3,090        

formula amount of that community school as adjusted by the school  3,091        

district's cost-of-doing-business factor.                                       

      (2)  The sum of the actual AVERAGE COUNTY costs for all      3,093        

                                                          70     

                                                                 
district students reported under division (B)(2) of this section   3,095        

who are to be receiving special education and related services     3,096        

pursuant to an IEP in their respective community schools, less     3,098        

the sum of the prorated share for each such student of any                      

amounts received from state preschool handicapped unit funding or  3,099        

from federal funds to provide special education and related        3,100        

services to students in the respective community schools.  This    3,101        

prorated share of state or federal funds received for each such    3,102        

student shall be determined on the basis of all such funds         3,103        

received by a community school for students receiving similar      3,104        

services, as calculated in a manner acceptable to the                           

superintendent of public instruction.                              3,105        

      (3)  An amount equal to the sum of the amounts obtained      3,107        

when, for each community school where the district's students are  3,108        

enrolled, the number of the district's students enrolled in that   3,109        

community school and residing in the district in a family          3,110        

participating in Ohio works first under Chapter 5107. of the       3,111        

Revised Code is multiplied by the per pupil amount of                           

disadvantaged pupil impact aid the school district receives that   3,113        

year pursuant to DIVISION (B) OR DIVISIONS (C) AND (E) OF section  3,115        

3317.029 of the Revised Code, as adjusted by any DPIA reduction    3,117        

factor of that community school.                                                

      (D)  The department shall annually pay to a community        3,119        

school established under this chapter all of the following:        3,120        

      (1)  An amount equal to the sum of the amounts obtained      3,122        

when the number of students enrolled in grades one through twelve  3,123        

plus one-half of the kindergarten students in the school as        3,125        

reported under division (B)(2) of this section who are not         3,127        

receiving special education and related services pursuant to an    3,128        

IEP is multiplied by the community school's base formula amount,   3,129        

as adjusted by the cost-of-doing-business factor of the school                  

district in which the school is located;                           3,130        

      (2)  For each student enrolled in the school receiving       3,132        

special education and related services pursuant to an IEP, an      3,134        

                                                          71     

                                                                 
amount equal to the actual AVERAGE COUNTY cost for such student,   3,135        

less a prorated share for the student of any amount received from  3,136        

state preschool handicapped unit funding or federal funds to       3,138        

provide special education and related services to students in the               

community school.  This prorated share shall be determined as      3,139        

described under division (C)(2) of this section.                   3,140        

      (3)  An amount equal to the number of students enrolled in   3,142        

the community school and residing in the school district in a      3,144        

family participating in Ohio works first is multiplied by the per  3,146        

pupil amount of disadvantaged pupil impact aid that school         3,148        

district receives that year pursuant to DIVISION (B) OR DIVISIONS  3,149        

(C) AND (E) OF section 3317.029 of the Revised Code, as adjusted   3,150        

by any DPIA reduction factor of the community school.              3,151        

      (E)  A community school may apply to the department of       3,154        

education for preschool handicapped or gifted unit funding the     3,155        

school would receive if it were a school district.  Upon request   3,156        

of its governing authority, a community school that received unit  3,158        

funding as a school district-operated school before it became a                 

community school shall retain any units awarded to it as a school  3,159        

district-operated school provided the school continues to meet     3,160        

eligibility standards for the unit.                                3,161        

      A community school shall be considered a school district     3,163        

and its governing authority shall be considered a board of         3,164        

education for the purpose of applying to any state or federal      3,165        

agency for grants that a school district may receive under         3,166        

federal or state law or any appropriations act of the general      3,167        

assembly.  The governing authority of a community school may       3,168        

apply to any private entity for additional funds.                  3,169        

      (F)  A board of education sponsoring a community school may  3,171        

utilize local funds to make enhancement grants to the school or    3,172        

may agree, either as part of the contract or separately, to        3,173        

provide any specific services to the community school at no cost   3,174        

to the school.                                                                  

      (G)  A community school may not levy taxes or issue bonds    3,176        

                                                          72     

                                                                 
secured by tax revenues.                                           3,178        

      (H)  No community school shall charge tuition for the        3,180        

enrollment of any student.                                         3,182        

      (I)  A community school may borrow money to pay any          3,184        

necessary and actual expenses of the school in anticipation of     3,186        

the receipt of any portion of the payments to be received by the   3,187        

school pursuant to division (D) of this section.  The school may   3,188        

issue notes to evidence such borrowing to mature no later than     3,189        

the end of the fiscal year in which such money was borrowed.  The               

proceeds of the notes shall be used only for the purposes for      3,190        

which the anticipated receipts may be lawfully expended by the     3,191        

school.                                                                         

      (J)  For purposes of determining the number of students for  3,194        

which division (D)(3) of this section applies in any school year,  3,195        

a community school may submit to the state department of human     3,196        

services, no later than the first day of March, a list of the      3,197        

students enrolled in the school.  For each student on the list,    3,198        

the community school shall indicate the student's name, address,   3,199        

and date of birth and the school district where the student is     3,200        

entitled to attend school under section 3313.64 or 3313.65 of the               

Revised Code.  Upon receipt of a list under this division, the     3,201        

department of human services shall determine, for each school      3,203        

district where one or more students on the list is entitled to     3,204        

attend school under section 3313.64 or 3313.65 of the Revised                   

Code, the number of students residing in that school district who  3,206        

were included in the department's report under section 3317.10 of  3,208        

the Revised Code.  The department shall make this determination    3,209        

on the basis of information readily available to it.  Upon making  3,210        

this determination and no later than ninety days after submission  3,211        

of the list by the community school, the department shall report   3,212        

to the state department of education the number of students on     3,213        

the list who reside in each school district who were included in   3,214        

the department's report under section 3317.10 of the Revised       3,215        

Code.  In complying with this division, the department of human    3,217        

                                                          73     

                                                                 
services shall not report to the state department of education     3,218        

any personally identifiable information on any student.                         

      (K)  The department of education shall adjust the amounts    3,220        

subtracted and paid under divisions (C) and (D) of this section    3,222        

to reflect any enrollment of students in community schools for                  

less than the equivalent of a full school year.                    3,223        

      Sec. 3314.12.  THE LEGISLATIVE OFFICE OF EDUCATION           3,225        

OVERSIGHT SHALL PRODUCE AND ISSUE AN ANNUAL COMPOSITE              3,226        

INFORMATIONAL REPORT ON COMMUNITY SCHOOLS TO THE SPEAKER OF THE    3,227        

HOUSE OF REPRESENTATIVES, THE PRESIDENT OF THE SENATE, AND THE                  

GOVERNOR.  THE REPORT SHALL INCLUDE THE NUMBER OF SCHOOLS IN       3,228        

OPERATION, THE SIZE AND CHARACTERISTICS OF ENROLLMENT FOR THE      3,229        

SCHOOLS, THE ACADEMIC PERFORMANCE OF THE SCHOOLS, THE FINANCIAL    3,230        

STATUS OF THE SCHOOLS, AND ANY OTHER PERTINENT INFORMATION.        3,231        

      Sec. 3314.13.  (A)  AS USED IN THIS SECTION:                 3,234        

      (1)  "ALL-DAY KINDERGARTEN" AND "DPIA INDEX" HAVE THE SAME   3,237        

MEANINGS AS IN SECTION 3317.029 OF THE REVISED CODE.               3,240        

      (2)  "FORMULA AMOUNT" HAS THE SAME MEANING AS IN SECTION     3,242        

3317.02 OF THE REVISED CODE.                                       3,244        

      (B)  THE DEPARTMENT OF EDUCATION ANNUALLY SHALL PAY EACH     3,247        

COMMUNITY SCHOOL ESTABLISHED UNDER THIS CHAPTER OR UNDER SECTION   3,249        

50.52 OF AM. SUB. H.B. NO. 215 OF THE 122nd GENERAL ASSEMBLY       3,251        

ONE-HALF OF THE FORMULA AMOUNT FOR EACH STUDENT WHO IS ENTITLED    3,252        

TO ATTEND SCHOOL UNDER SECTION 3313.64 OR 3313.65 OF THE REVISED   3,254        

CODE IN A SCHOOL DISTRICT WITH A DPIA INDEX OF ONE OR GREATER AND  3,256        

WHO IS REPORTED BY THE COMMUNITY SCHOOL AS ENROLLED IN ALL-DAY     3,257        

KINDERGARTEN AT THE COMMUNITY SCHOOL.  IF A STUDENT FOR WHOM                    

PAYMENT IS MADE UNDER THIS SECTION IS ENTITLED TO ATTEND SCHOOL    3,259        

IN A DISTRICT THAT RECEIVES ANY PAYMENT FOR ALL-DAY KINDERGARTEN   3,261        

UNDER DIVISION (D) OF SECTION 3317.029 OF THE REVISED CODE, THE    3,263        

DEPARTMENT SHALL DEDUCT THE PAYMENT TO THE COMMUNITY SCHOOL UNDER  3,264        

THIS SECTION FROM THE AMOUNT PAID THAT SCHOOL DISTRICT UNDER THAT  3,265        

DIVISION.  IF THAT SCHOOL DISTRICT DOES NOT RECEIVE PAYMENT FOR    3,266        

ALL-DAY KINDERGARTEN UNDER THAT DIVISION, THE DEPARTMENT SHALL     3,267        

                                                          74     

                                                                 
PAY THE COMMUNITY SCHOOL FROM STATE FUNDS APPROPRIATED GENERALLY   3,268        

FOR DISADVANTAGED PUPIL IMPACT AID.                                3,269        

      (C)  THE DEPARTMENT SHALL ADJUST THE AMOUNTS DEDUCTED FROM   3,272        

SCHOOL DISTRICTS AND PAID TO COMMUNITY SCHOOLS UNDER THIS SECTION  3,273        

TO REFLECT ANY ENROLLMENTS OF STUDENTS IN ALL-DAY KINDERGARTEN IN  3,274        

COMMUNITY SCHOOLS FOR LESS THAN THE EQUIVALENT OF A FULL SCHOOL    3,275        

YEAR.                                                                           

      Sec. 3315.171.  AS USED IN THIS SECTION, "SECURITIES" HAS    3,277        

THE SAME MEANING AS IN SECTION 133.01 OF THE REVISED CODE.         3,278        

      THE BOARD OF EDUCATION OF A CITY, EXEMPTED VILLAGE, LOCAL,   3,280        

OR JOINT VOCATIONAL SCHOOL DISTRICT MAY REPLACE REVENUES RECEIVED  3,282        

FOR OPERATING EXPENSES WITH MONEY RECEIVED FROM ANY OF THE         3,283        

FOLLOWING SOURCES IN MEETING THE AMOUNT REQUIRED BY DIVISION (A)   3,284        

OF SECTION 3315.17 OF THE REVISED CODE TO BE DEPOSITED IN THE      3,286        

DISTRICT'S TEXTBOOK AND INSTRUCTIONAL MATERIALS FUND:              3,287        

      (A)  A PERMANENT IMPROVEMENT LEVY AUTHORIZED BY SECTION      3,290        

5705.21 OF THE REVISED CODE TO THE EXTENT THE PROCEEDS ARE         3,293        

RESTRICTED BY THE DISTRICT BOARD TO EXPENDITURES FOR TEXTBOOKS,    3,294        

INSTRUCTIONAL SOFTWARE, AND INSTRUCTIONAL MATERIALS, SUPPLIES,     3,295        

AND EQUIPMENT;                                                                  

      (B)  THE PROCEEDS OF SECURITIES WHOSE USE IS RESTRICTED TO   3,298        

EXPENDITURES FOR TEXTBOOKS, INSTRUCTIONAL SOFTWARE, AND            3,299        

INSTRUCTIONAL MATERIALS, SUPPLIES, AND EQUIPMENT.                  3,300        

      Sec. 3315.181.  AS USED IN THIS SECTION, "SECURITIES" HAS    3,302        

THE SAME MEANING AS IN SECTION 133.01 OF THE REVISED CODE.         3,305        

      NOTWITHSTANDING DIVISION (A) OF SECTION 3315.18 OF THE       3,309        

REVISED CODE, THE BOARD OF EDUCATION OF A CITY, EXEMPTED VILLAGE,  3,311        

LOCAL, OR JOINT VOCATIONAL SCHOOL DISTRICT, IN MEETING THE AMOUNT  3,312        

REQUIRED BY THAT DIVISION TO BE DEPOSITED IN THE DISTRICT'S        3,313        

CAPITAL AND MAINTENANCE FUND, MAY REPLACE GENERAL FUND REVENUES    3,314        

WITH PROCEEDS RECEIVED FROM A PERMANENT IMPROVEMENT LEVY           3,315        

AUTHORIZED BY SECTION 5705.21 OF THE REVISED CODE ONLY TO THE      3,317        

EXTENT THE PROCEEDS ARE AVAILABLE TO BE USED FOR THE ACQUISITION,  3,318        

REPLACEMENT, ENHANCEMENT, MAINTENANCE, OR REPAIR OF PERMANENT      3,319        

                                                          75     

                                                                 
IMPROVEMENTS AS DEFINED IN SECTION 5705.01 OF THE REVISED CODE.    3,321        

IN ADDITION, THE BOARD MAY REPLACE GENERAL FUND REVENUES WITH      3,322        

PROCEEDS RECEIVED FROM ANY OF THE FOLLOWING SOURCES IN MEETING     3,323        

THE AMOUNT REQUIRED BY THAT DIVISION TO BE DEPOSITED IN THE FUND:  3,324        

      (A)  PROCEEDS RECEIVED FROM ANY SECURITIES WHOSE USE IS      3,326        

LIMITED TO THE ACQUISITION, REPLACEMENT, ENHANCEMENT,              3,327        

MAINTENANCE, OR REPAIR OF PERMANENT IMPROVEMENTS;                  3,328        

      (B)  INSURANCE PROCEEDS RECEIVED AS A RESULT OF THE DAMAGE   3,330        

TO OR THEFT OR DESTRUCTION OF A PERMANENT IMPROVEMENT TO THE       3,331        

EXTENT A BOARD OF EDUCATION PLACES THE PROCEEDS IN A SEPARATE      3,332        

FUND FOR THE ACQUISITION, REPLACEMENT, ENHANCEMENT, MAINTENANCE,   3,333        

OR REPAIR OF PERMANENT IMPROVEMENTS;                               3,334        

      (C)  PROCEEDS RECEIVED FROM THE SALE OF A PERMANENT          3,336        

IMPROVEMENT TO THE EXTENT THE PROCEEDS ARE PAID INTO A SEPARATE    3,337        

FUND FOR THE CONSTRUCTION OR ACQUISITION OF PERMANENT              3,338        

IMPROVEMENTS;                                                      3,339        

      (D)  PROCEEDS RECEIVED FROM A TAX LEVY AUTHORIZED BY         3,341        

SECTION 3318.06 OF THE REVISED CODE TO THE EXTENT THE PROCEEDS     3,343        

ARE AVAILABLE TO BE USED FOR THE MAINTENANCE OF CAPITAL            3,344        

FACILITIES;                                                        3,345        

      (E)  PROCEEDS OF CERTIFICATES OF PARTICIPATION ISSUED AS     3,348        

PART OF A LEASE-PURCHASE AGREEMENT ENTERED INTO UNDER SECTION      3,349        

3313.375 OF THE REVISED CODE.                                      3,351        

      Sec. 3317.01.  As used in this section and section 3317.011  3,360        

of the Revised Code, "school district," unless otherwise           3,361        

specified, means any city, local, exempted village, joint          3,362        

vocational, or cooperative education school district and any       3,364        

educational service center.                                        3,365        

      This chapter shall be administered by the state board of     3,367        

education.  The superintendent of public instruction shall         3,368        

calculate the amounts payable to each school district and shall    3,369        

certify the amounts payable to each eligible district to the       3,370        

treasurer of the district as provided by this chapter.  No moneys  3,371        

shall be distributed pursuant to this chapter without the          3,372        

                                                          76     

                                                                 
approval of the controlling board.                                 3,373        

      The state board of education shall, in accordance with       3,375        

appropriations made by the general assembly, meet the financial    3,376        

obligations of this chapter, except that moneys to meet the        3,377        

financial obligations of section 3301.17 of the Revised Code       3,378        

shall be supplemented from funds available to the state from the   3,379        

United States or any agency or department thereof for a driver     3,380        

education course of instruction.                                   3,381        

      ANNUALLY, THE DEPARTMENT OF EDUCATION SHALL CALCULATE AND    3,383        

REPORT TO EACH SCHOOL DISTRICT THE DISTRICT'S TOTAL STATE AND      3,384        

LOCAL FUNDS FOR PROVIDING AN ADEQUATE BASIC EDUCATION TO THE       3,385        

DISTRICT'S NONHANDICAPPED STUDENTS, UTILIZING THE DETERMINATION    3,386        

IN SECTION 3317.012 OF THE REVISED CODE.  IN ADDITION, THE                      

DEPARTMENT SHALL CALCULATE AND REPORT SEPARATELY FOR EACH SCHOOL   3,387        

DISTRICT THE DISTRICT'S TOTAL STATE AND LOCAL FUNDS FOR PROVIDNG   3,388        

AN ADEQUATE EDUCATION FOR ITS HANDICAPPED STUDENTS, UTILIZING THE  3,389        

DETERMINATIONS IN BOTH SECTIONS 3317.012 AND 3317.013 OF THE       3,390        

REVISED CODE.                                                                   

      Moneys distributed pursuant to this chapter shall be         3,392        

calculated and paid on a fiscal year basis, beginning with the     3,393        

first day of July and extending through the thirtieth day of       3,394        

June.  The moneys appropriated for each fiscal year shall be       3,395        

distributed at least monthly to each school district unless        3,396        

otherwise provided for.  With each payment, the state board shall  3,397        

submit to each school district a detailed statement of state       3,398        

special education support indicating the amount of the payment     3,399        

calculated under division (A) of section 3317.022 of the Revised   3,400        

Code as basic aid that is attributable to the district's category  3,402        

one, two, and three special education ADMs plus the amount of the  3,403        

distribution computed under division (C) of section 3317.022 of    3,404        

the Revised Code.  The state board shall submit a yearly                        

districution DISTRIBUTION plan to the controlling board at its     3,405        

first meeting in July.  The state board shall submit any proposed  3,406        

midyear revision of the plan to the controlling board in January.  3,408        

                                                          77     

                                                                 
Any year-end revision of the plan shall be submitted to the        3,409        

controlling board in June.  If moneys appropriated for each                     

fiscal year are distributed other than monthly, such distribution  3,410        

shall be on the same basis for each school district.               3,411        

      The total amounts paid each month shall constitute, as       3,413        

nearly as possible, one-twelfth of the total amount payable for    3,414        

the entire year.  Payments made during the first six months of     3,415        

the fiscal year may be based on an estimate of the amounts         3,416        

payable for the entire year.  Payments made in the last six        3,417        

months shall be based on the final calculation of the amounts      3,418        

payable to each school district for that fiscal year.  Payments    3,419        

made in the last six months may be adjusted, if necessary, to      3,420        

correct the amounts distributed in the first six months, and to    3,421        

reflect enrollment increases when such are at least three per      3,422        

cent.  Except as otherwise provided, payments under this chapter   3,423        

shall be made only to those school districts in which:             3,424        

      (A)  The school district, except for any educational         3,427        

service center and any joint vocational or cooperative education   3,428        

school district, levies for current operating expenses at least    3,429        

twenty mills.  Levies for joint vocational or cooperative          3,431        

education school districts or county school financing districts,   3,432        

limited to or to the extent apportioned to current expenses,       3,433        

shall be included in this qualification requirement.  School       3,434        

district income tax levies under Chapter 5748. of the Revised      3,435        

Code, limited to or to the extent apportioned to current           3,436        

operating expenses, shall be included in this qualification        3,437        

requirement to the extent determined by the tax commissioner       3,438        

under division (C) of section 3317.021 of the Revised Code.        3,439        

      (B)  The school year next preceding the fiscal year for      3,441        

which such payments are authorized meets the requirement of        3,442        

section 3313.48 or 3313.481 of the Revised Code, with regard to    3,443        

the minimum number of days or hours school must be open for        3,444        

instruction with pupils in attendance, for individualized          3,445        

parent-teacher conference and reporting periods, and for           3,446        

                                                          78     

                                                                 
professional meetings of teachers.  This requirement shall be      3,447        

waived by the superintendent of public instruction if it had been  3,448        

necessary for a school to be closed because of disease epidemic,   3,449        

hazardous weather conditions, inoperability of school buses or     3,450        

other equipment necessary to the school's operation, damage to a   3,451        

school building, or other temporary circumstances due to utility   3,452        

failure rendering the school building unfit for school use,        3,453        

provided that for those school districts operating pursuant to     3,454        

section 3313.48 of the Revised Code the number of days the school  3,455        

was actually open for instruction with pupils in attendance and    3,456        

for individualized parent-teacher conference and reporting         3,457        

periods is not less than one hundred seventy-five, or for those    3,458        

school districts operating on a trimester plan the number of days  3,459        

the school was actually open for instruction with pupils in        3,460        

attendance not less than seventy-nine days in any trimester, for   3,461        

those school districts operating on a quarterly plan the number    3,462        

of days the school was actually open for instruction with pupils   3,463        

in attendance not less than fifty-nine days in any quarter, or     3,464        

for those school districts operating on a pentamester plan the     3,465        

number of days the school was actually open for instruction with   3,466        

pupils in attendance not less than forty-four days in any          3,467        

pentamester.                                                                    

      A school district shall not be considered to have failed to  3,469        

comply with this division or section 3313.481 of the Revised Code  3,470        

because schools were open for instruction but either twelfth       3,471        

grade students were excused from attendance for up to three days   3,472        

or only a portion of the kindergarten students were in attendance  3,473        

for up to three days in order to allow for the gradual             3,474        

orientation to school of such students.                            3,475        

      The superintendent of public instruction shall waive the     3,477        

requirements of this section with reference to the minimum number  3,478        

of days or hours school must be in session with pupils in          3,479        

attendance for the school year succeeding the school year in       3,480        

which a board of education initiates a plan of operation pursuant  3,481        

                                                          79     

                                                                 
to section 3313.481 of the Revised Code.  The minimum              3,482        

requirements of this section shall again be applicable to such a   3,483        

district beginning with the school year commencing the second      3,484        

July succeeding the initiation of one such plan, and for each      3,485        

school year thereafter.                                            3,486        

      A school district shall not be considered to have failed to  3,488        

comply with this division or section 3313.48 or 3313.481 of the    3,489        

Revised Code because schools were open for instruction but the     3,490        

length of the regularly scheduled school day, for any number of    3,491        

days during the school year, was reduced by not more than two      3,492        

hours due to hazardous weather conditions.                                      

      (C)  The school district has on file, and is paying in       3,494        

accordance with, a teacher's TEACHERS' salary schedule which       3,496        

complies with section 3317.13 of the Revised Code.                              

      A board of education or governing board of an educational    3,498        

service center which has not conformed with other law and the      3,500        

rules pursuant thereto, shall not participate in the distribution  3,501        

of funds authorized by sections 3317.022 to 3317.0211, 3317.11,    3,502        

3317.16, 3317.17, and 3317.19 of the Revised Code, except for      3,503        

good and sufficient reason established to the satisfaction of the  3,504        

state board of education and the state controlling board.          3,505        

      All funds allocated to school districts under this chapter,  3,507        

except those specifically allocated for other purposes, shall be   3,508        

used to pay current operating expenses only.                       3,509        

      Sec. 3317.013.  This section does not apply to preschool     3,518        

handicapped PRESCHOOL students.                                    3,519        

      Analysis of special education cost data has resulted in a    3,521        

finding that the average special education excess ADDITIONAL cost  3,523        

per pupil, including the costs of related services, can be         3,524        

expressed as a multiple of the base cost per pupil calculated      3,526        

under section 3317.012 of the Revised Code.  The multiples for     3,527        

the following categories of special education programs, as these   3,528        

programs are defined for purposes of Chapter 3323. of the Revised  3,529        

Code, are as follows:                                                           

                                                          80     

                                                                 
      (A)  A multiple of 0.22 for students identified as specific  3,532        

learning disabled, other health handicapped, or developmentally                 

handicapped, as these terms are defined pursuant to Chapter 3323.  3,533        

of the Revised Code;                                               3,534        

      (B)  A multiple of 3.01 for students identified as hearing   3,536        

handicapped, orthopedically handicapped, vision impaired,          3,537        

multihandicapped, and severe behavior handicapped, as these terms  3,539        

are defined pursuant to Chapter 3323. of the Revised Code.         3,540        

      Further analysis indicates that approximately one-eighth of  3,542        

THE TOTAL COSTS OF SERVING special education costs consist         3,544        

STUDENTS CONSISTS of the furnishing of THE related services        3,546        

specified in division (A)(B)(3) of section 3317.024 3317.022 of    3,548        

the Revised Code.                                                  3,549        

      Sec. 3317.02.  As used in this chapter:                      3,558        

      (A)  Unless otherwise specified, "school district" means     3,560        

city, local, and exempted village school districts.                3,561        

      (B)  "Formula amount" means the base cost for the fiscal     3,563        

year specified in section 3317.012 of the Revised Code, except     3,565        

that to allow for the orderly phase-in of the increased funding    3,567        

specified in that section, the formula amount for fiscal year      3,568        

1999 shall be $3,851; the formula amount for fiscal year 2000      3,569        

shall be $4,038; and the formula amount for fiscal year 2001       3,570        

shall be $4,226.  Thereafter, the formula amount shall be as       3,571        

specified in that section.                                                      

      (C)  "FTE basis" means a count of students based on          3,574        

full-time equivalency, in accordance with rules adopted by the     3,575        

department of education pursuant to section 3317.03 of the         3,576        

Revised Code.  IN ADOPTING ITS RULES UNDER THIS DIVISION, THE      3,577        

DEPARTMENT SHALL PROVIDE FOR COUNTING ANY STUDENT IN A DISTRICT'S  3,578        

CATEGORY ONE, TWO, OR THREE SPECIAL EDUCATION ADM IN THE SAME      3,579        

PROPORTION THE STUDENT IS COUNTED IN FORMULA ADM.                  3,580        

      (D)(1)  "Formula ADM" means the greater of the number        3,583        

reported pursuant to division (A) of section 3317.03 of the        3,585        

Revised Code or the three-year.                                    3,587        

                                                          81     

                                                                 
      (2)  "THREE-YEAR AVERAGE FORMULA ADM" MEANS THE average of   3,589        

that number and the number reported under that division A SCHOOL   3,591        

DISTRICT'S FORMULA ADMs for the CURRENT AND preceding two fiscal   3,592        

years.  However, as applicable in fiscal years 1999 and 2000, the  3,594        

three-year average specified in this division shall be determined  3,596        

utilizing the FY 1997 ADM or FY 1998 ADM in lieu of a number       3,598        

reported under division (A) of section 3317.03 of the Revised      3,600        

Code FORMULA ADM FOR FISCAL YEAR 1997 OR 1998.                     3,601        

      (E)  "Preschool special education ADM" means the sum of the  3,604        

average daily membership of handicapped preschool children                      

receiving services in preschool special education units approved   3,605        

pursuant to division (B) of section 3317.05 of the Revised Code    3,607        

FY 1997 ADM" or "FY 1998 ADM" MEANS THE DISTRICT'S AVERAGE DAILY   3,612        

MEMBERSHIP REPORTED FOR THE APPLICABLE FISCAL YEAR UNDER THE       3,613        

VERSION OF DIVISION (A) OF SECTION 3317.03 OF THE REVISED CODE IN  3,616        

EFFECT DURING THAT FISCAL YEAR, ADJUSTED AS FOLLOWS:               3,617        

      (1)  MINUS THE AVERAGE DAILY MEMBERSHIP OF HANDICAPPED       3,620        

PRESCHOOL CHILDREN;                                                             

      (2)  MINUS ONE-HALF OF THE AVERAGE DAILY MEMBERSHIP          3,623        

ATTENDING KINDERGARTEN;                                                         

      (3)  MINUS THREE-FOURTHS OF THE AVERAGE DAILY MEMBERSHIP     3,626        

ATTENDING A JOINT VOCATIONAL SCHOOL DISTRICT;                      3,627        

      (4)  PLUS THE AVERAGE DAILY MEMBERSHIP ENTITLED UNDER        3,629        

SECTION 3313.64 OR 3313.65 OF THE REVISED CODE TO ATTEND SCHOOL    3,631        

IN THE DISTRICT BUT RECEIVING EDUCATIONAL SERVICES IN APPROVED     3,632        

UNITS FROM AN EDUCATIONAL SERVICE CENTER OR ANOTHER SCHOOL         3,634        

DISTRICT UNDER A COMPACT OR A COOPERATIVE EDUCATION AGREEMENT, AS  3,635        

DETERMINED BY THE DEPARTMENT;                                                   

      (5)  MINUS THE AVERAGE DAILY MEMBERSHIP RECEIVING            3,637        

EDUCATIONAL SERVICES FROM THE DISTRICT IN APPROVED UNITS BUT       3,638        

ENTITLED UNDER SECTION 3313.64 OR 3313.65 OF THE REVISED CODE TO   3,639        

ATTEND SCHOOL IN ANOTHER SCHOOL DISTRICT, AS DETERMINED BY THE     3,640        

DEPARTMENT.                                                                     

      (F)(1)  "Category one special education ADM" means the       3,644        

                                                          82     

                                                                 
average daily membership of handicapped children receiving                      

special education services for those handicaps specified in        3,646        

division (A) of section 3317.013 of the Revised Code and reported  3,648        

under division (B) of section 3317.03 of the Revised Code.         3,650        

      (2)  "Category two special education ADM" means the average  3,654        

daily membership of handicapped children receiving special         3,655        

education services for those handicaps specified in division (B)   3,656        

of section 3317.013 of the Revised Code and reported under         3,658        

division (B) of section 3317.03 of the Revised Code.               3,660        

      (3)  "Category three special education ADM" means the        3,664        

average daily membership of students receiving special education   3,665        

services for students identified as autistic, having traumatic                  

brain injuries, or as both visually and hearing disabled as these  3,666        

terms are defined pursuant to Chapter 3323. of the Revised Code,   3,667        

and reported under division (B) of section 3317.03 of the Revised  3,668        

Code.                                                                           

      (G)  "Family assistance" means assistance received under     3,670        

the Ohio works first program or, for the purpose of determining    3,672        

the five-year average of recipients of family assistance for       3,673        

fiscal years 1999 through 2002, assistance received under an       3,674        

antecedent family assistance program known as TANF or ADC          3,675        

HANDICAPPED PRESCHOOL CHILD" MEANS A HANDICAPPED CHILD, AS         3,677        

DEFINED IN SECTION 3323.01 OF THE REVISED CODE, WHO IS AT LEAST    3,679        

AGE THREE BUT IS NOT OF COMPULSORY SCHOOL AGE, AS DEFINED IN       3,680        

SECTION 3321.01 OF THE REVISED CODE, AND WHO HAS NOT ENTERED       3,682        

KINDERGARTEN.                                                      3,683        

      (H)  "DPIA ADM" means the five-year average of the number    3,686        

of children ages five to seventeen years residing in the school    3,687        

district and living in a family receiving family assistance, as    3,689        

certified or adjusted under section 3317.10 of the Revised Code    3,690        

COUNTY MR/DD BOARD" MEANS A COUNTY BOARD OF MENTAL RETARDATION     3,692        

AND DEVELOPMENTAL DISABILITIES.                                    3,693        

      (I)(1)  "DPIA percentage" means a school district's DPIA     3,696        

ADM for the fiscal year divided by the district's three-year       3,697        

                                                          83     

                                                                 
average formula ADM for that fiscal year.                          3,699        

      (2)  "Three-year average formula ADM" means the average of   3,702        

the district's formula ADM for the current and preceding two       3,704        

fiscal years, provided that in fiscal years 1999 and 2000, the     3,705        

department shall calculate this average utilizing the district's   3,706        

ADM reported for fiscal years 1997 and 1998 pursuant to division   3,707        

(A) of section 3317.03 of the Revised Code, minus one-half the     3,709        

kindergarten students "RECOGNIZED VALUATION" MEANS THE AMOUNT      3,712        

CALCULATED FOR A SCHOOL DISTRICT PURSUANT TO SECTION 3317.015 OF   3,713        

THE REVISED CODE.                                                  3,714        

      (J)  "Transportation ADM" means the number of children       3,718        

reported under division (B)(9) of section 3317.03 of the Revised   3,720        

Code.                                                              3,721        

      (K)  "Most efficient transportation use cost per             3,723        

TRANSPORTED student" for a district means the most efficient cost  3,725        

per transported student for that district as developed A           3,726        

STATISTICAL REPRESENTATION OF TRANSPORTATION COSTS AS CALCULATED   3,727        

under division (D)(4) of section 3317.022 of the Revised Code.     3,729        

      (L)  "Taxes charged and payable" means the taxes charged     3,731        

and payable against real and public utility property after making  3,732        

the reduction required by section 319.301 of the Revised Code,     3,733        

plus the taxes levied against tangible personal property.          3,734        

      (M)  "Total taxable value" means the sum of the amounts      3,738        

certified for a city, local, exempted village, or joint            3,739        

vocational school district under divisions (A)(1) and (2) of       3,740        

section 3317.021 of the Revised Code.                                           

      (N)(1)  "Cost-of-doing-business factor" means the amount     3,742        

indicated in this division for the county in which the district    3,743        

is located, adjusted in accordance with division (N)(2) of this    3,745        

section.  If the district is located in more than one county, the  3,746        

factor is the amount indicated for the county to which the                      

district is assigned by the state department of education.         3,747        

                                  COST-OF-DOING-BUSINESS           3,749        

      COUNTY                          FACTOR AMOUNT                3,750        

                                                          84     

                                                                 
      Adams                              1.0100                    3,754        

      Allen                              1.0272                    3,755        

      Ashland                            1.0362                    3,756        

      Ashtabula                          1.0540                    3,757        

      Athens                             1.0040                    3,758        

      Auglaize                           1.0300                    3,759        

      Belmont                            1.0101                    3,760        

      Brown                              1.0218                    3,761        

      Butler                             1.0662                    3,762        

      Carroll                            1.0180                    3,763        

      Champaign                          1.0432                    3,764        

      Clark                              1.0489                    3,765        

      Clermont                           1.0498                    3,766        

      Clinton                            1.0287                    3,767        

      Columbiana                         1.0320                    3,768        

      Coshocton                          1.0224                    3,769        

      Crawford                           1.0174                    3,770        

      Cuyahoga                           1.0725                    3,771        

      Darke                              1.0360                    3,772        

      Defiance                           1.0214                    3,773        

      Delaware                           1.0512                    3,774        

      Erie                               1.0414                    3,775        

      Fairfield                          1.0383                    3,776        

      Fayette                            1.0281                    3,777        

      Franklin                           1.0548                    3,778        

      Fulton                             1.0382                    3,779        

      Gallia                             1.0000                    3,780        

      Geauga                             1.0608                    3,781        

      Greene                             1.0418                    3,782        

      Guernsey                           1.0091                    3,783        

      Hamilton                           1.0750                    3,784        

      Hancock                            1.0270                    3,785        

      Hardin                             1.0384                    3,786        

      Harrison                           1.0111                    3,787        

                                                          85     

                                                                 
      Henry                              1.0389                    3,788        

      Highland                           1.0177                    3,789        

      Hocking                            1.0164                    3,790        

      Holmes                             1.0275                    3,791        

      Huron                              1.0348                    3,792        

      Jackson                            1.0176                    3,793        

      Jefferson                          1.0090                    3,794        

      Knox                               1.0276                    3,795        

      Lake                               1.0627                    3,796        

      Lawrence                           1.0154                    3,797        

      Licking                            1.0418                    3,798        

      Logan                              1.0376                    3,799        

      Lorain                             1.0573                    3,800        

      Lucas                              1.0449                    3,801        

      Madison                            1.0475                    3,802        

      Mahoning                           1.0465                    3,803        

      Marion                             1.0289                    3,804        

      Medina                             1.0656                    3,805        

      Meigs                              1.0016                    3,806        

      Mercer                             1.0209                    3,807        

      Miami                              1.0456                    3,808        

      Monroe                             1.0152                    3,809        

      Montgomery                         1.0484                    3,810        

      Morgan                             1.0168                    3,811        

      Morrow                             1.0293                    3,812        

      Muskingum                          1.0194                    3,813        

      Noble                              1.0150                    3,814        

      Ottawa                             1.0529                    3,815        

      Paulding                           1.0216                    3,816        

      Perry                              1.0185                    3,817        

      Pickaway                           1.0350                    3,818        

      Pike                               1.0146                    3,819        

      Portage                            1.0595                    3,820        

      Preble                             1.0523                    3,821        

                                                          86     

                                                                 
      Putnam                             1.0308                    3,822        

      Richland                           1.0232                    3,823        

      Ross                               1.0111                    3,824        

      Sandusky                           1.0361                    3,825        

      Scioto                             1.0082                    3,826        

      Seneca                             1.0265                    3,827        

      Shelby                             1.0274                    3,828        

      Stark                              1.0330                    3,829        

      Summit                             1.0642                    3,830        

      Trumbull                           1.0465                    3,831        

      Tuscarawas                         1.0109                    3,832        

      Union                              1.0488                    3,833        

      Van Wert                           1.0181                    3,834        

      Vinton                             1.0065                    3,835        

      Warren                             1.0678                    3,836        

      Washington                         1.0124                    3,837        

      Wayne                              1.0446                    3,838        

      Williams                           1.0316                    3,839        

      Wood                               1.0431                    3,840        

      Wyandot                            1.0227                    3,841        

      (2)  As used in this division, "multiplier" means the        3,844        

number for the corresponding fiscal year as follows:               3,845        

      FISCAL YEAR OF THE                                           3,847        

          COMPUTATION                  MULTIPLIER                  3,848        

             1998                       9.6/7.5                    3,850        

             1999                       11.0/7.5                   3,851        

             2000                       12.4/7.5                   3,852        

             2001                       13.8/7.5                   3,853        

             2002                       15.2/7.5                   3,854        

             2003                       16.6/7.5                   3,855        

      2004 and thereafter               18.0/7.5                   3,856        

      Beginning in fiscal year 1998, the department shall          3,859        

annually adjust the cost-of-doing-business factor for each county  3,861        

in accordance with the following formula:                          3,862        

                                                          87     

                                                                 
       [(The cost-of-doing-business factor specified under         3,864        

     division (N)(1) of this section - 1) X (the multiplier        3,865        

          for the fiscal year of the calculation)< + 1             3,866        

      The result of such formula shall be the adjusted             3,868        

cost-of-doing-business factor for that fiscal year.                3,869        

      (O)  "Tax exempt value" of a school district means the       3,871        

amount certified for a school district under division (A)(4) of    3,872        

section 3317.021 of the Revised Code.                              3,873        

      (P)  "Potential value" of a school district means the        3,875        

adjusted total taxable value of a school district plus the tax     3,877        

exempt value of the district.                                      3,878        

      (Q)  "District median income" means the median Ohio          3,880        

adjusted gross income certified for a school district.  On or      3,881        

before the first day of July of each year, the tax commissioner    3,882        

shall certify to the department of education for each city,        3,883        

exempted village, and local school district the median Ohio        3,884        

adjusted gross income of the residents of the school district      3,885        

determined on the basis of tax returns filed for the second        3,886        

preceding tax year by the residents of the district.                            

      (R)  "Statewide median income" means the median district     3,888        

median income of all city, exempted village, and local school      3,890        

districts in the state.                                                         

      (S)  "Income factor" for a city, exempted village, or local  3,892        

school district means the quotient obtained by dividing that       3,894        

district's median income by the statewide median income.           3,895        

      (T)  "Valuation EXCEPT AS PROVIDED IN DIVISION (B)(3) OF     3,897        

SECTION 3317.012 OF THE REVISED CODE, "VALUATION per pupil" for a  3,898        

city, exempted village, or local school district means the         3,900        

district's recognized valuation divided by THE GREATER OF the      3,901        

district's formula ADM OR THREE-YEAR AVERAGE FORMULA ADM.          3,903        

      (U)  Except as provided in section 3317.0213 of the Revised  3,906        

Code, "adjusted valuation per pupil" means the amount calculated   3,908        

in accordance with the following formula:                          3,909        

            District valuation per pupil - [$60,000 X              3,911        

                                                          88     

                                                                 
                  (1 - district income factor)<                    3,912        

      If the result of such formula is negative, the adjusted      3,914        

valuation per pupil shall be zero.                                 3,915        

      (V)  "Income adjusted valuation" means the product obtained  3,917        

by multiplying the district's adjusted valuation per pupil by THE  3,918        

GREATER OF the district's formula ADM OR THREE-YEAR AVERAGE        3,920        

FORMULA ADM.                                                                    

      (W)  "Adjusted EXCEPT AS PROVIDED IN DIVISION (A)(2) OF      3,922        

SECTION 3317.022 OF THE REVISED CODE, "ADJUSTED total taxable      3,923        

value" means one of the following:                                 3,924        

      (1)  In any fiscal year that a district's income factor is   3,926        

less than or equal to one, the amount calculated under the         3,927        

following formula:                                                              

               (Income adjusted valuation X 1/5) +                 3,929        

                  (recognized valuation X 4/5)                     3,930        

      (2)  In fiscal year 1999, if a district's income factor is   3,933        

greater than one, the amount calculated under the following        3,934        

formula:                                                           3,935        

               (Income adjusted valuation X 1/15)                  3,937        

                + (recognized valuation X 14/15)                   3,938        

      Thereafter, the adjusted total taxable value of a district   3,940        

with an income factor greater than one shall be its recognized     3,942        

valuation.                                                                      

      (X)  "Recognized valuation" means the amount calculated for  3,944        

a school district pursuant to section 3317.015 of the Revised      3,947        

Code.                                                                           

      (Y)  "County MR/DD board" means a county board of mental     3,951        

retardation and developmental disabilities.                        3,952        

      (Z)  "Handicapped preschool child" means a handicapped       3,955        

child, as defined in section 3323.01 of the Revised Code, who is   3,957        

at least age three but is not of compulsory school age, as         3,958        

defined in section 3321.01 of the Revised Code, and who has not    3,960        

entered kindergarten.                                              3,961        

      (AA)  "FY 1997 or FY 1998 ADM" means for either fiscal       3,965        

                                                          89     

                                                                 
year, as applicable, the district's average daily membership as    3,966        

described by division (A) of former section 3317.02 of the         3,967        

Revised Code, plus the district's average daily membership based   3,969        

upon full-time equivalency in approved vocational units as                      

certified by the district under division (A)(2) of former section  3,971        

3317.03 of the Revised Code and the district's average daily       3,973        

membership of all handicapped children, except for preschool       3,975        

handicapped children, in classes in the district as certified                   

under division (a)(3) of former section 3317.03 of the Revised     3,977        

Code, as those divisions and sections existed in the applicable    3,979        

fiscal year.                                                                    

      Sec. 3317.021.  (A)  On or before the first day of June of   3,988        

each year, the tax commissioner shall certify to the department    3,989        

of education the following information for each city, exempted     3,990        

village, and local school district and the information required    3,991        

by divisions (A)(1) and (2) of this section for each joint         3,992        

vocational school district, and it shall be used, along with the   3,993        

information certified under division (B) of this section, in       3,994        

making the computations for the district under section 3317.022    3,995        

or 3317.16 of the Revised Code:                                    3,996        

      (1)  The taxable value of real and public utility real       3,998        

property in the school district subject to taxation in the         3,999        

preceding tax year, by class and by county of location;            4,000        

      (2)  The taxable value of tangible personal property,        4,002        

including public utility personal property, subject to taxation    4,003        

by the district for the preceding tax year;                        4,004        

      (3)  The total property tax rate and total taxes charged     4,006        

and payable for the current expenses for the preceding tax year    4,007        

and the total property tax rate and the total taxes charged and    4,008        

payable to a joint vocational district for the preceding tax year  4,009        

that are limited to or to the extent apportioned to current        4,010        

expenses;                                                          4,011        

      (4)  The value of all real and public utility real property  4,013        

in the school district exempted from taxation minus both of the    4,014        

                                                          90     

                                                                 
following:                                                         4,015        

      (a)  The value of real and public utility real property in   4,017        

the district owned by the United States government and used        4,018        

exclusively for a public purpose;                                  4,019        

      (b)  The value of real and public utility real property in   4,021        

the district exempted from taxation under Chapter 725. or 1728.    4,022        

or section 3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,  4,023        

5709.73, or 5709.78 of the Revised Code.                           4,024        

      (5)  The total effective operating tax rate for the          4,026        

district IN THE TAX YEAR FOR WHICH THE MOST RECENT DATA ARE        4,027        

AVAILABLE.                                                                      

      (B)  On or before the first day of May each year, the tax    4,029        

commissioner shall certify to the department of education the      4,030        

total taxable real property value of railroads and, separately,    4,031        

the total taxable tangible personal property value of all public   4,032        

utilities for the preceding tax year, by school district and by    4,033        

county of location.                                                4,034        

      (C)  If on the basis of the information certified under      4,036        

division (A) of this section, the department determines that any   4,037        

district fails in any year to meet the qualification requirement   4,038        

specified in division (A) of section 3317.01 of the Revised Code,  4,039        

the department shall immediately request the tax commissioner to   4,040        

determine the extent to which any school district income tax       4,041        

levied by the district under Chapter 5748. of the Revised Code     4,042        

shall be included in meeting that requirement.  Within five days   4,043        

of receiving such a request from the department, the tax           4,044        

commissioner shall make the determination required by this         4,045        

division and report the quotient obtained under division (C)(3)    4,046        

of this section to the department.  This quotient represents the   4,047        

number of mills that the department shall include in determining   4,048        

whether the district meets the qualification requirement of        4,049        

division (A) of section 3317.01 of the Revised Code.               4,050        

      The tax commissioner shall make the determination required   4,052        

by this division as follows:                                       4,053        

                                                          91     

                                                                 
      (1)  Multiply one mill times the total taxable value of the  4,055        

district as determined in divisions (A)(1) and (2) of this         4,056        

section;                                                           4,057        

      (2)  Estimate the total amount of tax liability for the      4,059        

current tax year under taxes levied by Chapter 5748. of the        4,060        

Revised Code that are apportioned to current operating expenses    4,061        

of the district;                                                   4,062        

      (3)  Divide the amount estimated under division (C)(2) of    4,064        

this section by the product obtained under division (C)(1) of      4,065        

this section.                                                      4,066        

      (D)  As used in this section:                                4,068        

      (1)  "Class I taxes charged and payable for current          4,071        

expenses" means taxes charged and payable for current expenses on               

land and improvements classified as residential/agricultural real  4,072        

property under section 5713.041 of the Revised Code.               4,074        

      (2)  "Class I taxable value" means the taxable value of      4,077        

land and improvements classified as residential/agricultural real  4,078        

property under section 5713.041 of the Revised Code.               4,079        

      (3)  "Class I effective operating tax rate" of a school      4,082        

district means the quotient obtained by dividing the school        4,083        

district's Class I taxes charged and payable for current expenses  4,084        

by the district's Class I taxable value.                                        

      (4)  "Income tax equivalent tax rate" of a school district   4,086        

means the quotient obtained by dividing the income tax liability   4,088        

for the most recently concluded REVENUE DISBURSED DURING THE       4,089        

CURRENT FISCAL year under any tax levied pursuant to Chapter       4,090        

5748. of the Revised Code by total taxable value of the district   4,092        

to the extent the revenue from the tax is allocated or                          

apportioned to current expenses.                                   4,093        

      (5)  "Total effective operating tax rate" means the sum of   4,096        

the Class I effective operating tax rate and the income tax        4,098        

equivalent tax rate.                                                            

      (6)  "State taxable value per pupil" means the quotient      4,101        

obtained by dividing the total taxable value of all city, local,   4,102        

                                                          92     

                                                                 
and exempted village school districts in this state by the sum of  4,103        

the formula ADMs of all city, local, and exempted village school   4,104        

districts in this state.                                                        

      Sec. 3317.022.  (A)(1)  The department of education shall    4,113        

compute and distribute state basic aid to each school district     4,115        

for the fiscal year in accordance with the following formula,      4,116        

using adjusted total taxable value as defined under division (W)   4,118        

of section 3317.02 of the Revised Code OR DIVISION (A)(2) OF THIS  4,119        

SECTION and the information obtained under section 3317.021 of     4,120        

the Revised Code in the calendar year in which the fiscal year     4,121        

begins.                                                                         

      Compute the following for each eligible district:            4,123        

                ([cost-of-doing-business factor X                  4,124        

        the formula amount X (THE GREATER OF formula ADM           4,125        

              OR THREE-YEAR AVERAGE FORMULA ADM)< -                4,126        

              (.023 X adjusted total taxable value)                4,127        

      If the difference obtained is a negative number, the         4,129        

district's computation shall be zero.                              4,130        

      (2)(a)  For each school district for which the tax exempt    4,133        

value of the district equals or exceeds twenty-five per cent of    4,134        

the potential value of the district, the department of education   4,135        

shall calculate the difference between the district's tax exempt   4,136        

value and twenty-five per cent of the district's potential value.  4,137        

      (b)  For each school district to which division (A)(2)(a)    4,140        

of this section applies, the adjusted total taxable value used in  4,141        

the calculation under division (A)(1) of this section shall be     4,142        

the adjusted total taxable value modified by subtracting the       4,143        

amount calculated under division (A)(2)(a) of this section.        4,144        

      (B)  As used in division (C) of this section and in section  4,147        

3317.024 of the Revised Code:                                                   

      (1)  The "total special education weight" for a district     4,149        

means the sum of the following amounts:                            4,150        

      (a)  The district's category one special education ADM       4,152        

multiplied by the multiple specified under division (A) of         4,155        

                                                          93     

                                                                 
section 3317.013 of the Revised Code;                                           

      (b)  The sum of the district's category two and category     4,157        

three special education ADMs multiplied by the multiple specified  4,159        

under division (B) of section 3317.013 of the Revised Code.        4,160        

      (2)  "State share percentage" means the percentage           4,162        

calculated for a district as follows:                              4,163        

      (a)  Calculate the basic aid amount for the district for     4,165        

the fiscal year under division (A) of this section.  If the        4,167        

district would not receive any state basic aid for that year                    

under that division, the district's state share percentage is      4,168        

zero.                                                                           

      (b)  If the district would receive basic aid under that      4,170        

division, divide that basic aid amount by an amount equal to the   4,171        

following:                                                         4,172        

                 Cost-of-doing-business factor X                   4,174        

          the formula amount X (THE GREATER OF formula             4,175        

             ADM OR THREE-YEAR AVERAGE FORMULA ADM)                4,176        

      The resultant number is the district's state share           4,179        

percentage.                                                        4,180        

      (3)  "RELATED SERVICES" INCLUDES:                            4,183        

      (a)  CHILD STUDY, SPECIAL EDUCATION SUPERVISORS AND          4,185        

COORDINATORS, SPEECH AND HEARING SERVICES, ADAPTIVE PHYSICAL       4,186        

DEVELOPMENT SERVICES, AND OCCUPATIONAL OR PHYSICAL THERAPY, AS     4,187        

THOSE TERMS ARE DEFINED BY THE DEPARTMENT;                         4,188        

      (b)  SPEECH AND LANGUAGE SERVICES PROVIDED TO ANY STUDENT    4,191        

WITH A HANDICAP, INCLUDING ANY STUDENT WHOSE PRIMARY OR ONLY       4,192        

HANDICAP IS A SPEECH AND LANGUAGE HANDICAP;                                     

      (c)  ANY RELATED SERVICE NOT SPECIFICALLY COVERED BY OTHER   4,195        

STATE FUNDS BUT SPECIFIED IN FEDERAL LAW, INCLUDING BUT NOT        4,196        

LIMITED TO, AUDIOLOGY AND PSYCHOLOGY;                                           

      (d)  ANY SERVICE INCLUDED IN UNITS FUNDED UNDER FORMER       4,199        

DIVISION (O)(1) OF SECTION 3317.023 OF THE REVISED CODE.           4,201        

      (C)(1)  The department shall compute and distribute state    4,203        

basic special education AND RELATED SERVICES ADDITIONAL WEIGHTED   4,204        

                                                          94     

                                                                 
COSTS funds to each school district in accordance with the         4,205        

following formula:                                                              

              The district's state share percentage                4,207        

       X seven-eighths of the formula amount for the year          4,208        

                 for which the aid is calculated                   4,209        

         X the district's total special education weight           4,210        

      (2)  IN ANY FISCAL YEAR, A SCHOOL DISTRICT RECEIVING FUNDS   4,212        

UNDER DIVISION (C)(1) OF THIS SECTION SHALL SPEND ON RELATED       4,214        

SERVICES THE LESSER OF THE FOLLOWING:                              4,215        

      (a)  THE AMOUNT THE DISTRICT SPENT ON RELATED SERVICES IN    4,218        

THE PRECEDING FISCAL YEAR;                                                      

      (b)  1/8 X [COST-OF-DOING-BUSINESS FACTOR X THE FORMULA     4,222        

AMOUNT X (THE CATEGORY ONE SPECIAL EDUCATION ADM + CATEGORY TWO    4,223        

SPECIAL EDUCATION ADM + CATEGORY THREE SPECIAL EDUCATION ADM)< +   4,225        

THE AMOUNT CALCULATED FOR THE FISCAL YEAR UNDER DIVISION (C)(1)    4,227        

OF THIS SECTION + THE LOCAL SHARE OF SPECIAL EDUCATION AND         4,228        

RELATED SERVICES ADDITIONAL WEIGHTED COSTS                         4,229        

      (3)  THE LOCAL SHARE OF SPECIAL EDUCATION AND RELATED        4,231        

SERVICES ADDITIONAL WEIGHTED COSTS EQUALS:                         4,232        

          (1 - THE DISTRICT'S STATE SHARE PERCENTAGE) X            4,234        

         THE DISTRICT'S TOTAL SPECIAL EDUCATION WEIGHT X           4,235        

                       THE FORMULA AMOUNT                          4,236        

      (4)  The department shall compute and pay in accordance      4,239        

with this division additional state aid to school districts for    4,240        

students in category three special education ADM.  If a            4,241        

district's costs for the fiscal year for a student in its          4,242        

category three special education ADM are twenty-five thousand      4,244        

dollars or more, the district may submit to the superintendent of  4,245        

public instruction documentation, as prescribed by the             4,246        

superintendent, of all its costs for that student.  Upon           4,247        

submission of documentation for a student of the type and in the   4,248        

manner prescribed, the department shall pay to the district an     4,249        

amount equal to the district's costs for the student in excess of  4,250        

twenty-five thousand dollars multiplied by the district's state    4,251        

                                                          95     

                                                                 
share percentage.                                                               

      (D)(1)  As used in this division, "log density" means a      4,253        

statistical representation of the most efficient transportation    4,254        

use cost per transported student for each district based on a      4,255        

statewide analysis THE LOGARITHMIC CALCULATION (BASE 10) of each   4,256        

district's transportation ADM per linear mile.                     4,257        

      (2)  In addition to funds paid under divisions (A) and (C)   4,260        

of this section, each district shall receive a payment equal to                 

sixty per cent of the district's transportation ADM times the      4,261        

district's most efficient transportation use cost per transported  4,262        

student.                                                                        

      (3)  In fiscal years 1999 through 2002, notwithstanding the  4,264        

amount calculated for each district under division (D)(2) of this  4,265        

section, each district shall receive in the corresponding fiscal   4,266        

year the following percentage of the district's transportation     4,267        

ADM times the district's most efficient transportation use cost    4,268        

per transported student:                                                        

         FISCAL YEAR                        PERCENTAGE             4,270        

         1999                               50%                    4,271        

         2000                               52.5%                  4,272        

         2001                               55%                    4,273        

         2002                               57.5%                  4,274        

      (4)  For purposes of funding the student transportation      4,278        

portion, the department of education shall determine the most      4,279        

efficient transportation use cost per transported student for      4,280        

each school district.  This cost per student shall be an amount    4,281        

equal to the number ten to a power calculated in accordance with   4,282        

the following formula:                                                          

              (-0.413148 X log density) + 2.493129                 4,284        

      (5)  The department of education shall biennially ANNUALLY   4,286        

update the most efficient transportation use cost per transported  4,288        

student for each district in accordance with the formula in        4,289        

division (D)(4) of this section, including the figures and log     4,290        

density component of that formula, based on a AN ANNUAL statewide  4,291        

                                                          96     

                                                                 
analysis of each district's transportation ADM per linear mile,    4,293        

and shall notify the office of budget and management of such                    

update by September of each even-numbered EVERY year.              4,294        

      THE DEPARTMENT OF EDUCATION SHALL USE THE MOST RECENT        4,296        

AVAILABLE DATA AS OF THE FIRST DAY OF JULY OF EACH YEAR TO         4,297        

COMPLETE THE ANNUAL UPDATE.  THE DEPARTMENT SHALL APPLY A 2.8 PER  4,298        

CENT INFLATION COST ADJUSTMENT FACTOR FOR EACH FISCAL YEAR SINCE   4,299        

THE FISCAL YEAR FOR WHICH THE DATA APPLIES TO ADJUST THE AMOUNT    4,300        

CALCULATED FOR EACH DISTRICT UNDER DIVISION (D)(2) OR (3) OF THIS  4,301        

SECTION TO THE CURRENT FISCAL YEAR LEVEL.                                       

      (6)  IN ADDITION TO FUNDS PAID UNDER DIVISION (D)(2) OR (3)  4,303        

OF THIS SECTION, EACH DISTRICT SHALL RECEIVE IN ACCORDANCE WITH    4,305        

RULES ADOPTED BY THE STATE BOARD OF EDUCATION A PAYMENT FOR        4,306        

STUDENTS TRANSPORTED BY MEANS OTHER THAN BOARD-OWNED OR            4,307        

CONTRACTOR-OPERATED BUSES AND WHOSE TRANSPORTATION IS NOT FUNDED   4,308        

UNDER DIVISION (J) OF SECTION 3317.024 OF THE REVISED CODE.  THE   4,309        

RULES SHALL INCLUDE PROVISIONS FOR SCHOOL DISTRICT REPORTING OF    4,310        

SUCH STUDENTS.                                                                  

      Sec. 3317.023.  (A)  Notwithstanding section 3317.022 of     4,319        

the Revised Code, the amounts required to be paid to a district    4,320        

under that section THIS CHAPTER shall be adjusted by the amount    4,321        

of the computations made under divisions (B) to (J)(K) of this     4,322        

section.                                                           4,323        

      As used in this section:                                     4,325        

      (1)  "Classroom teacher" means a licensed employee who       4,327        

provides direct instruction to pupils, excluding teachers funded   4,328        

from money paid to the district from federal sources; educational  4,329        

service personnel; and vocational and special education teachers.  4,330        

      (2)  "Educational service personnel" shall not include such  4,332        

specialists funded from money paid to the district from federal    4,333        

sources or assigned full-time to vocational or special education   4,334        

students and classes and may only include those persons employed   4,335        

in the eight specialist areas in a pattern approved by the         4,336        

department of education under guidelines established by the state  4,337        

                                                          97     

                                                                 
board of education.                                                4,338        

      (3)  "Annual salary" means the annual base salary stated in  4,340        

the state minimum salary schedule for the performance of the       4,341        

teacher's regular teaching duties that the teacher earns for       4,342        

services rendered for the first full week of October of the        4,343        

fiscal year for which the adjustment is made under division (C)    4,345        

of this section.  It shall not include any salary payments for     4,346        

supplemental teachers contracts.                                   4,347        

      (4)  "Regular student population" means the formula ADM      4,350        

PLUS THE NUMBER OF STUDENTS REPORTED AS ENROLLED IN THE DISTRICT   4,351        

PURSUANT TO DIVISION (A)(1) OF SECTION 3313.981 OF THE REVISED     4,352        

CODE; minus the number of students reported under division (A)(2)  4,354        

of section 3317.03 of the Revised Code and; minus the FTE of       4,355        

students reported under division (B)(5), (6), (7), or (8) of that  4,356        

section who are enrolled in a vocational education class or        4,357        

receiving special education,; and minus one-fourth of the          4,358        

students enrolled concurrently in a joint vocational school        4,359        

district.                                                                       

      (B)  If the district employs less than one full-time         4,361        

equivalent classroom teacher for each twenty-five pupils in the    4,363        

regular student population in any school district, deduct the sum               

of the amounts obtained from the following computations:           4,366        

      (1)  Divide the number of the district's full-time           4,368        

equivalent classroom teachers employed by one twenty-fifth;        4,369        

      (2)  Subtract the quotient in (1) from the district's        4,371        

regular student population;                                        4,372        

      (3)  Multiply the difference in (2) by seven hundred         4,374        

fifty-two dollars.                                                 4,375        

      (C)  If a positive amount, add one-half of the amount        4,377        

obtained by multiplying the number of full-time equivalent         4,378        

classroom teachers by:                                             4,379        

      (1)  The mean annual salary of all full-time equivalent      4,381        

classroom teachers employed by the district at their respective    4,382        

training and experience levels minus;                              4,383        

                                                          98     

                                                                 
      (2)  The mean annual salary of all such teachers at their    4,385        

respective levels in all school districts receiving payments       4,386        

under this section.                                                4,387        

      The number of full-time equivalent classroom teachers used   4,389        

in this computation shall not exceed one twenty-fifth of the       4,390        

district's regular student population.  In calculating the         4,392        

district's mean salary under this division, those full-time        4,393        

equivalent classroom teachers with the highest training level      4,394        

shall be counted first, those with the next highest training       4,395        

level second, and so on, in descending order.  Within the          4,396        

respective training levels, teachers with the highest years of     4,397        

service shall be counted first, the next highest years of service  4,398        

second, and so on, in descending order.                                         

      (D)  This division does not apply to a school district that  4,401        

has entered into an agreement under division (A) of section        4,402        

3313.42 of the Revised Code.  Deduct the amount obtained from the  4,403        

following computations if the district employs fewer than five     4,404        

full-time equivalent educational service personnel, including      4,405        

elementary school art, music, and physical education teachers,     4,406        

counselors, librarians, visiting teachers, school social workers,  4,407        

and school nurses for each one thousand pupils in the regular      4,409        

student population:                                                4,410        

      (1)  Divide the number of full-time equivalent educational   4,412        

service personnel employed by the district by five                 4,413        

one-thousandths;                                                   4,414        

      (2)  Subtract the quotient in (1) from the district's        4,416        

regular student population;                                        4,417        

      (3)  Multiply the difference in (2) by ninety-four dollars.  4,419        

      (E)  If a local school district, or a city or exempted       4,421        

village school district to which a governing board of an           4,423        

educational service center provides services pursuant to section   4,424        

3313.843 of the Revised Code, deduct the amount of the payment     4,425        

required for the reimbursement of the governing board under        4,426        

section 3317.11 of the Revised Code.                               4,427        

                                                          99     

                                                                 
      (F)(1)  If the district is required to pay to or entitled    4,429        

to receive tuition from another school district under division     4,430        

(C)(2) or (3) of section 3313.64 or section 3313.65 of the         4,431        

Revised Code, or if the superintendent of public instruction is    4,432        

required to determine the correct amount of tuition and make a     4,433        

deduction or credit under section 3317.08 of the Revised Code,     4,434        

deduct and credit such amounts as provided in division (I) of      4,435        

section 3313.64 or section 3317.08 of the Revised Code.            4,436        

      (2)  For each child for whom the district is responsible     4,438        

for tuition or payment under division (A)(1) of section 3317.082   4,439        

or section 3323.091 of the Revised Code, deduct the amount of      4,441        

tuition or payment for which the district is responsible.                       

      (G)  If the district has been certified by the               4,443        

superintendent of public instruction under section 3313.90 of the  4,444        

Revised Code as not in compliance with the requirements of that    4,445        

section, deduct an amount equal to ten per cent of the amount      4,446        

computed for the district under section 3317.022 of the Revised    4,447        

Code.                                                              4,448        

      (H)  If the district has received a loan from a commercial   4,451        

lending institution for which payments are made by the             4,452        

superintendent of public instruction pursuant to division (E)(3)   4,453        

of section 3313.483 of the Revised Code, deduct an amount equal    4,454        

to such payments.                                                  4,455        

      (I)(1)  If the district is a party to an agreement entered   4,457        

into under division (D), (E), or (F) of section 3311.06 or         4,458        

division (B) of section 3311.24 of the Revised Code and is         4,459        

obligated to make payments to another district under such an       4,460        

agreement, deduct an amount equal to such payments if the          4,461        

district school board notifies the department in writing that it   4,462        

wishes to have such payments deducted.                             4,463        

      (2)  If the district is entitled to receive payments from    4,465        

another district that has notified the department to deduct such   4,466        

payments under division (I)(1) of this section, add the amount of  4,468        

such payments.                                                     4,469        

                                                          100    

                                                                 
      (J)  If the district is required to pay an amount of funds   4,471        

to a cooperative education district pursuant to a provision        4,472        

described by division (B)(4) of section 3311.52 or division        4,473        

(B)(8) of section 3311.521 of the Revised Code, deduct such        4,474        

amounts as provided under that provision and credit those amounts  4,475        

to the cooperative education district for payment to the district  4,476        

under division (B)(1) of section 3317.19 of the Revised Code.      4,477        

      (K)(1)  IF A DISTRICT IS EDUCATING A STUDENT ENTITLED TO     4,479        

ATTEND SCHOOL IN ANOTHER DISTRICT PURSUANT TO A SHARED EDUCATION   4,480        

CONTRACT, COMPACT, OR COOPERATIVE EDUCATION AGREEMENT OTHER THAN   4,481        

AN AGREEMENT ENTERED INTO PURSUANT TO SECTION 3313.842 OF THE      4,482        

REVISED CODE, CREDIT TO THAT EDUCATING DISTRICT ON AN FTE BASIS    4,483        

BOTH OF THE FOLLOWING:                                                          

      (a)  AN AMOUNT EQUAL TO THE FORMULA AMOUNT TIMES THE COST    4,485        

OF DOING BUSINESS FACTOR OF THE SCHOOL DISTRICT WHERE THE STUDENT  4,486        

IS ENTITLED TO ATTEND SCHOOL PURSUANT TO SECTION 3313.64 OR        4,487        

3313.65 OF THE REVISED CODE;                                       4,488        

      (b)  AN AMOUNT EQUAL TO THE FORMULA AMOUNT TIMES THE STATE   4,490        

SHARE PERCENTAGE TIMES ANY MULTIPLE APPLICABLE TO THE STUDENT      4,491        

PURSUANT TO SECTION 3317.013 OF THE REVISED CODE.                  4,492        

      (2)  DEDUCT ANY AMOUNT CREDITED PURSUANT TO DIVISION (K)(1)  4,494        

OF THIS SECTION FROM AMOUNTS PAID TO THE SCHOOL DISTRICT IN WHICH  4,495        

THE STUDENT IS ENTITLED TO ATTEND SCHOOL PURSUANT TO SECTION       4,496        

3313.64 OR 3313.65 OF THE REVISED CODE.                            4,497        

      (3)  IF THE DISTRICT IS REQUIRED BY A SHARED EDUCATION       4,499        

CONTRACT, COMPACT, OR COOPERATIVE EDUCATION AGREEMENT TO MAKE      4,500        

PAYMENTS TO AN EDUCATIONAL SERVICE CENTER, DEDUCT THE AMOUNTS      4,501        

FROM PAYMENTS TO THE DISTRICT AND ADD THEM TO THE AMOUNTS PAID TO  4,502        

THE SERVICE CENTER PURSUANT TO SECTION 3317.11 OF THE REVISED                   

CODE.                                                                           

      Sec. 3317.024.  In addition to the moneys paid to eligible   4,511        

school districts pursuant to section 3317.022 of the Revised       4,513        

Code, moneys appropriated for the education programs in divisions  4,514        

(A) to (L), and (O) to (Q), AND (P) of this section shall be       4,516        

                                                          101    

                                                                 
distributed to school districts meeting the requirements of        4,517        

section 3317.01 of the Revised Code; in the case of divisions (I)  4,518        

and (J) AND, IN FISCAL YEAR 1999 ONLY, DIVISION (P)(1) of this     4,519        

section, to educational service centers as provided in section     4,520        

3317.11 of the Revised Code; in the case of division DIVISIONS     4,522        

(E), (M), AND (N) of this section, to county MR/DD boards; in the  4,524        

case of division (I) of this section, to joint vocational and      4,525        

cooperative education school districts; in the case of division    4,526        

(K) of this section, to cooperative education school districts;    4,528        

in the case of divisions (M) and (N) of this section, to county    4,530        

MR/DD boards; and in the case of division (R)(Q) of this section,  4,531        

to the institutions defined under section 3317.082 of the Revised  4,532        

Code providing elementary or secondary education programs to       4,533        

children other than children receiving special education under     4,534        

section 3323.091 of the Revised Code.  The following shall be      4,535        

distributed monthly, quarterly, or annually as may be determined   4,536        

by the state board of education:                                   4,537        

      (A)(1)  An amount for related services equal to one-eighth   4,540        

of the district's total special education weight times the         4,542        

formula amount times the district's state share percentage.        4,543        

      (2)  In any fiscal year, a school district receiving funds   4,545        

under this division shall spend on related services at least the   4,547        

lesser of:                                                                      

      (a)  The amount the district spent on related services in    4,550        

the preceding fiscal year;                                                      

      (b)  The sum of the amount it receives under this division   4,553        

in state funds plus an amount equal to the local share of related  4,554        

services costs.                                                                 

      (3)  As used in this division:                               4,556        

      (a)  "Local share of related services costs" equals the      4,559        

amount calculated under the following formula:                     4,560        

             [(1 minus the district's state share) X               4,562        

     1/8 of the district's total special education weight X        4,563        

                       the formula amount<                         4,564        

                                                          102    

                                                                 
      (b)  "Related services" means programs and services related  4,567        

to the provision of special education to handicapped students,     4,568        

and includes child study; special education supervisors and        4,569        

coordinators; speech and hearing services; adaptive physical       4,570        

development services; and occupational or physical therapy, as     4,571        

those terms are defined by the department of education A PER       4,573        

PUPIL AMOUNT TO EACH SCHOOL DISTRICT THAT ESTABLISHES A SUMMER     4,574        

SCHOOL REMEDIATION PROGRAM THAT COMPLIES WITH RULES OF THE STATE   4,575        

BOARD OF EDUCATION.                                                             

      (B)  An amount for each island school district and each      4,577        

joint state school district for the operation of each high school  4,578        

and each elementary school maintained within such district and     4,579        

for capital improvements for such schools.  Such amounts shall be  4,580        

determined on the basis of standards adopted by the state board    4,581        

of education.                                                      4,582        

      (C)  An amount for each school district operating classes    4,584        

for children of migrant workers who are unable to be in            4,585        

attendance in an Ohio school during the entire regular school      4,586        

year.  The amounts shall be determined on the basis of standards   4,587        

adopted by the state board of education, except that payment       4,588        

shall be made only for subjects regularly offered by the school    4,589        

district providing the classes.                                    4,590        

      (D)  An amount for each school district with guidance,       4,592        

testing, and counseling programs approved by the state board of    4,593        

education.  The amount shall be determined on the basis of         4,594        

standards adopted by the state board of education.                 4,595        

      (E)  An amount for the emergency purchase of school buses    4,597        

as provided for in section 3317.07 of the Revised Code;            4,598        

      (F)  An amount for each school district required to pay      4,600        

tuition for a child in an institution maintained by the            4,601        

department of youth services pursuant to section 3317.082 of the   4,602        

Revised Code, provided the child was not included in the           4,604        

calculation of the district's average daily membership for the     4,605        

preceding school year.                                                          

                                                          103    

                                                                 
      (G)  An amount to each school district for supplemental      4,607        

salary allowances for each licensed employee except those          4,609        

licensees serving as superintendents, assistant superintendents,   4,610        

principals, or assistant principals, whose term of service in any  4,611        

year is extended beyond the term of service of regular classroom   4,612        

teachers, as described in section 3301.0725 of the Revised Code;   4,613        

      (H)  An amount for adult basic literacy education for each   4,615        

district participating in programs approved by the state board of  4,616        

education.  The amount shall be determined on the basis of         4,617        

standards adopted by the state board of education.                 4,618        

      (I)  Notwithstanding section 3317.01 of the Revised Code,    4,620        

to each city, local, and exempted village school district, an      4,621        

amount pursuant to section 3301.17 of the Revised Code for         4,622        

conducting driver education courses at high schools for which the  4,623        

state board of education prescribes minimum standards and to       4,624        

joint vocational and cooperative education school districts and    4,626        

educational service centers, an amount pursuant to such section    4,627        

for conducting driver education courses to pupils enrolled in a    4,628        

high school for which the state board prescribes minimum           4,629        

standards;                                                                      

      (J)  An amount for the approved cost of transporting         4,631        

developmentally handicapped pupils whom it is impossible or        4,632        

impractical to transport by regular school bus in the course of    4,633        

regular route transportation provided by the district or service   4,634        

center.  No district or service center is eligible to receive a    4,635        

payment under this division for the cost of transporting any       4,637        

pupil whom it transports by regular school bus and who is          4,638        

included in the district's transportation ADM.  The state board    4,639        

of education shall establish standards and guidelines for use by   4,640        

the department of education in determining the approved cost of    4,641        

such transportation for each district or service center.           4,642        

      (K)  An amount to each school district, including each       4,644        

cooperative education school district, pursuant to section         4,645        

3313.81 of the Revised Code to assist in providing free lunches    4,646        

                                                          104    

                                                                 
to needy children and an amount to assist needy school districts   4,647        

in purchasing necessary equipment for food preparation.  The       4,648        

amounts shall be determined on the basis of rules adopted by the   4,649        

state board of education.                                          4,650        

      (L)  An amount to each school district, for each pupil       4,652        

attending a chartered nonpublic elementary or high school within   4,653        

the district.  The amount shall equal the amount appropriated for  4,654        

the implementation of section 3317.06 of the Revised Code divided  4,655        

by the average daily membership in grades kindergarten through     4,656        

twelve in nonpublic elementary and high schools within the state   4,657        

as determined during the first full week in October of each        4,658        

school year.                                                       4,659        

      (M)  An amount for each county MR/DD board, distributed on   4,662        

the basis of standards adopted by the state board of education,    4,663        

for the approved cost of transportation required for children      4,664        

attending special education programs operated by the county MR/DD  4,665        

board under section 3323.09 of the Revised Code;                   4,666        

      (N)  An amount for each county MR/DD board, distributed on   4,669        

the basis of standards adopted by the state board of education,    4,670        

for supportive home services for preschool children;               4,671        

      (O)  An amount for each school district that establishes a   4,673        

mentor teacher program that complies with rules of the state       4,674        

board of education.  No school district shall be required to       4,675        

establish or maintain such a program in any year unless            4,676        

sufficient funds are appropriated to cover the district's total    4,677        

costs for the program.                                                          

      (P)  A per pupil amount to each school district that         4,679        

establishes a summer school remediation program that complies      4,680        

with rules of the state board of education;                        4,681        

      (Q)(1)  For fiscal year 1999 only, an amount to each school  4,684        

district or educational service center for the total number of     4,685        

gifted units approved pursuant to section 3317.05 of the Revised   4,686        

Code.  The amount for each such unit shall be the sum of the       4,687        

minimum salary for the teacher of the unit, calculated on the      4,688        

                                                          105    

                                                                 
basis of the teacher's training level and years of experience      4,689        

pursuant to section 3317.13 of the Revised Code, plus fifteen per  4,690        

cent of that minimum salary amount, plus two thousand six hundred  4,691        

seventy-eight dollars.                                             4,692        

      (2)  Beginning with fiscal year 2000, an amount for each     4,694        

school district for programs for gifted students calculated under  4,696        

the following formula:                                                          

          STATE SHARE PERCENTAGE X [.10 (THE GREATER OF            4,698        

         formula ADM OR THREE-YEAR AVERAGE FORMULA ADM)            4,699        

               multiplied by .10 (formula amount)<                 4,700        

      No money shall be distributed to a school district under     4,702        

division (Q)(P)(2) of this section in any fiscal year unless the   4,704        

superintendent has on file by the first day of that year a         4,705        

district plan specifying the manner in which funds will be         4,706        

utilized to serve gifted students and the method for selecting     4,707        

students to participate in gifted programs and activities.         4,708        

      (3)  Prior to October 1, 1998, the general assembly shall    4,711        

begin a review and revision of the funding formula for gifted      4,712        

education services.  The analysis and any resulting calculations                

shall be based upon a rational methodology for calculating the     4,713        

cost of adequate gifted education services.  The analysis shall    4,714        

use data generated by a study funded through the department of     4,715        

education.                                                                      

      (R)(Q)  An amount to each institution defined under section  4,718        

3317.082 of the Revised Code providing elementary or secondary     4,720        

education to children other than children receiving special        4,721        

education under section 3323.091 of the Revised Code.  This        4,722        

amount for any institution in any fiscal year shall equal the      4,723        

total of all tuition amounts required to be paid to the            4,724        

institution under division (A)(1) of section 3317.082 of the       4,726        

Revised Code.                                                                   

      The state board of education or any other board of           4,728        

education or governing board may provide for any resident of a     4,729        

district or educational service center territory any educational   4,731        

                                                          106    

                                                                 
service for which funds are made available to the board by the     4,732        

United States under the authority of public law, whether such      4,733        

funds come directly or indirectly from the United States or any    4,734        

agency or department thereof or through the state or any agency,   4,735        

department, or political subdivision thereof.                                   

      Sec. 3317.029.  (A)  As used in this section:                4,745        

      (1)  "DPIA PERCENTAGE" MEANS THE QUOTIENT OBTAINED BY        4,748        

DIVIDING THE FIVE-YEAR AVERAGE NUMBER OF CHILDREN AGES FIVE TO     4,749        

SEVENTEEN RESIDING IN THE SCHOOL DISTRICT AND LIVING IN A FAMILY   4,750        

RECEIVING FAMILY ASSISTANCE, AS CERTIFIED OR ADJUSTED UNDER        4,751        

SECTION 3317.10 OF THE REVISED CODE, BY THE DISTRICT'S THREE-YEAR  4,754        

AVERAGE FORMULA ADM.                                                            

      (2)  "FAMILY ASSISTANCE" MEANS ASSISTANCE RECEIVED UNDER     4,756        

THE OHIO WORKS FIRST PROGRAM OR, FOR THE PURPOSE OF DETERMINING    4,758        

THE FIVE-YEAR AVERAGE NUMBER OF RECIPIENTS OF FAMILY ASSISTANCE    4,759        

IN FISCAL YEARS 1999 THROUGH 2002, ASSISTANCE RECEIVED UNDER AN    4,760        

ANTECEDENT PROGRAM KNOWN AS TANF OR ADC.                           4,762        

      (3)  "Statewide DPIA percentage" means the five-year         4,765        

average of the total number of children ages five to seventeen     4,766        

years residing in the state and receiving family assistance,       4,767        

divided by the average of the sum of the THREE-YEAR AVERAGE        4,768        

formula ADMs reported for all school districts in the state for    4,770        

the current and preceding two fiscal years, provided that in       4,771        

fiscal years 1999 and 2000, the department shall calculate this    4,772        

three-year average utilizing district ADMs reported pursuant to    4,773        

the version of division (A) of section 3317.03 of the Revised      4,775        

Code in effect in fiscal years 1997 and 1998;.                     4,776        

      (2)(4)  "DPIA index" means the quotient obtained by          4,779        

dividing the school district's DPIA percentage by the statewide    4,781        

DPIA percentage;.                                                               

      (3)(5)  "Kindergarten ADM" means the number of students      4,784        

reported under section 3317.03 of the Revised Code as enrolled in  4,785        

kindergarten;.                                                     4,786        

      (4)(6)  "Kindergarten through third grade ADM" means the     4,789        

                                                          107    

                                                                 
sum obtained by multiplying AMOUNT CALCULATED AS FOLLOWS:          4,790        

      (a)  MULTIPLY the kindergarten ADM by two, adding THE SUM    4,793        

OF ONE PLUS THE ALL-DAY KINDERGARTEN PERCENTAGE;                   4,794        

      (b)  ADD THE KINDERGARTEN ADM TO THE PRODUCT CALCULATED      4,796        

UNDER DIVISION (A)(6)(a) OF THIS SECTION;                          4,797        

      (c)  ADD TO THE SUM CALCULATED UNDER DIVISION (A)(6)(b) OF   4,800        

THIS SECTION the number of students in grades one through three,   4,801        

and subtracting;                                                                

      (d)  SUBTRACT FROM THE SUM CALCULATED UNDER DIVISION         4,804        

(A)(6)(c) OF THIS SECTION the number of special education          4,805        

students in grades one KINDERGARTEN through three;.                4,807        

      (5)(7)  "Statewide average teacher salary" means             4,809        

thirty-nine thousand ninety-two dollars, which includes an amount  4,810        

for the value of fringe benefits;.                                 4,811        

      (6)  "Statewide formula ADM" means the sum total of the      4,814        

formula ADM for all school districts in the state;                 4,815        

      (7)(8)  "ALL-DAY KINDERGARTEN" MEANS A KINDERGARTEN CLASS    4,818        

THAT IS IN SESSION FIVE DAYS PER WEEK FOR NOT LESS THAN THE SAME   4,819        

NUMBER OF CLOCK HOURS EACH DAY AS FOR PUPILS IN GRADES ONE         4,820        

THROUGH SIX.                                                                    

      (9)  "All-day kindergarten percentage" means the percentage  4,822        

of a district's actual total number of students enrolled in        4,824        

kindergarten who are ENROLLED in classes that are in session five  4,826        

days per week for not less than the same number of clock hours     4,827        

each day as for pupils in grades one through six; ALL-DAY                       

KINDERGARTEN.                                                      4,828        

      (8)(10)  "Buildings with the highest concentration of need"  4,830        

means the school buildings in a district with percentages of       4,832        

students receiving family assistance in grades kindergarten        4,833        

through three at least as high as the district-wide percentage of  4,834        

students receiving family assistance.  IF, HOWEVER, THE            4,835        

INFORMATION PROVIDED BY THE DEPARTMENT OF HUMAN SERVICES UNDER     4,836        

SECTION 3317.10 OF THE REVISED CODE IS INSUFFICIENT TO DETERMINE   4,839        

THE FAMILY ASSISTANCE PERCENTAGE IN EACH BUILDING, "BUILDINGS      4,840        

                                                          108    

                                                                 
WITH THE HIGHEST CONCENTRATION OF NEED" HAS THE MEANING GIVEN IN   4,841        

RULES THAT THE DEPARTMENT OF EDUCATION SHALL ADOPT.  THE RULES     4,842        

SHALL BASE THE DEFINITION OF "BUILDINGS WITH THE HIGHEST           4,843        

CONCENTRATION OF NEED" ON FAMILY INCOME OF STUDENTS IN GRADES      4,844        

KINDERGARTEN THROUGH THREE IN A MANNER THAT, TO THE EXTENT                      

POSSIBLE WITH AVAILABLE DATA, APPROXIMATES THE INTENT OF THIS      4,845        

DIVISION AND DIVISION (G) OF THIS SECTION TO DESIGNATE BUILDINGS   4,847        

WHERE THE FAMILY ASSISTANCE PERCENTAGE IN THOSE GRADES EQUALS OR   4,848        

EXCEEDS THE DISTRICT-WIDE FAMILY ASSISTANCE PERCENTAGE.            4,849        

      (B)  In addition to the amounts required to be paid to a     4,852        

school district under section 3317.022 of the Revised Code, a      4,853        

school district shall receive the greater of the amount the        4,854        

district received in fiscal year 1998 pursuant to division (B) of  4,855        

section 3317.023 of the Revised Code as it existed at that time    4,857        

or the amount of the sum of the following computations made under  4,859        

divisions (C) to (E) of this section.                              4,860        

      (C)  A supplemental payment that may be utilized for         4,862        

measures related to safety and security and for remediation or     4,863        

similar programs, calculated as follows:                           4,864        

      (1)  If the DPIA index of the school district is greater     4,867        

than or equal to thirty-five-hundredths, but less than one, an     4,868        

amount obtained by multiplying the five-year average number of     4,869        

pupils in a district receiving family assistance by two hundred    4,870        

thirty dollars;                                                    4,871        

      (2)  If the DPIA index of the school district is greater     4,874        

than or equal to one, an amount obtained by multiplying the DPIA   4,876        

index by two hundred thirty dollars and multiplying that product   4,877        

by the five-year average number of pupils in a district receiving  4,878        

family assistance.                                                 4,879        

      (D)  A payment for all-day kindergarten if the DPIA index    4,882        

of the school district is greater than or equal to one or if the   4,883        

district's three-year average formula ADM exceeded seventeen       4,884        

thousand five hundred, calculated by multiplying the all-day       4,885        

kindergarten percentage by the kindergarten ADM and multiplying    4,886        

                                                          109    

                                                                 
that product by the formula amount.                                4,887        

      (E)  A class-size reduction payment based on calculating     4,890        

the number of new teachers necessary to achieve a lower            4,891        

student-teacher ratio, as follows:                                 4,892        

      (1)  Determine or calculate a formula number of teachers     4,894        

per one thousand students based on the DPIA index of the school    4,896        

district as follows:                                               4,897        

      (a)  If the DPIA index of the school district is less than   4,900        

six-tenths, the formula number of teachers is 43.478, which is     4,901        

the number of teachers per one thousand students at a              4,902        

student-teacher ratio of twenty-three to one;                      4,903        

      (b)  If the DPIA index of the school district is greater     4,906        

than or equal to six-tenths, but less than two and one-half, the   4,907        

formula number of teachers is calculated as follows:               4,908        

           43.478 + [(DPIA index-0.6)/1.9< X 23.188               4,910        

      Where 43.478 is the number of teachers per one thousand      4,912        

students at a student-teacher ratio of twenty-three to one; 1.9    4,913        

is the interval from a DPIA index of six-tenths to a DPIA index    4,916        

of two and one-half; and 23.188 is the difference in the number    4,917        

of teachers per one thousand students at a student-teacher ratio   4,918        

of fifteen to one and the number of teachers per one thousand      4,919        

students at a student-teacher ratio of twenty-three to one.        4,921        

      (c)  If the DPIA index of the school district is greater     4,924        

than or equal to two and one-half, the formula number of teachers  4,925        

is 66.667, which is the number of teachers per one thousand        4,926        

students at a student-teacher ratio of fifteen to one.             4,927        

      (2)  Multiply the formula number of teachers determined or   4,929        

calculated in division (E)(1) of this section by the kindergarten  4,932        

through third grade ADM for the district and divide that product   4,934        

by one thousand;                                                                

      (3)  Calculate the number of new teachers as follows:        4,937        

      (a)  Multiply the kindergarten through third grade ADM by    4,940        

43.478, which is the number of teachers per one thousand students  4,941        

at a student-teacher ratio of twenty-three to one, and divide      4,942        

                                                          110    

                                                                 
that product by one thousand;                                      4,943        

      (b)  Subtract the quotient obtained in division (E)(3)(a)    4,946        

of this section from the product in division (E)(2) of this        4,948        

section.                                                                        

      (4)  Multiply the greater of the difference obtained under   4,950        

division (E)(3) of this section or zero by the statewide average   4,952        

teachers salary.                                                                

      (F)  This division applies only to school districts whose    4,954        

DPIA index is one or greater.                                      4,955        

      (1)  Each school district subject to this division shall     4,957        

first utilize funds received under this section SO THAT, WHEN      4,958        

COMBINED WITH OTHER FUNDS OF THE DISTRICT, SUFFICIENT FUNDS EXIST  4,959        

to provide all-day kindergarten to at least the number of          4,960        

children in the district's all-day kindergarten percentage.        4,961        

      (2)  Up to an amount equal to the district's DPIA index      4,963        

multiplied by the five-year average number of pupils in a          4,964        

district receiving family assistance multiplied by two hundred     4,965        

thirty dollars of the money distributed under this section may be  4,967        

utilized for one or both of the following:                         4,968        

      (a)  Programs designed to ensure that schools are free of    4,971        

drugs and violence and have a disciplined environment conducive    4,972        

to learning;                                                                    

      (b)  Remediation for students who have failed or are in      4,975        

danger of failing any of the proficiency tests administered        4,976        

pursuant to section 3301.0710 of the Revised Code.                              

      (3)  Except as otherwise required by division (G) of this    4,978        

section, all other funds distributed UNDER THIS SECTION to         4,979        

districts subject to this division under this section shall be     4,982        

utilized for the purpose of the third grade guarantee.  The third  4,983        

grade guarantee consists of increasing the amount of               4,985        

instructional attention received per pupil in kindergarten         4,986        

through third grade, either by reducing the ratio of students to   4,987        

instructional personnel or by increasing the amount of             4,988        

instruction and curriculum-related activities by extending the     4,989        

                                                          111    

                                                                 
length of the school day or the school year.                       4,990        

      School districts may implement a reduction of the ratio of   4,992        

students to instructional personnel through any or all of the      4,993        

following methods:                                                 4,994        

      (a)  Reducing the number of students in a classroom taught   4,997        

by a single teacher;                                                            

      (b)  Employing full-time educational aides or educational    5,000        

paraprofessionals issued a permit or license under section         5,001        

3319.088 of the Revised Code;                                                   

      (c)  Instituting a team-teaching method that will result in  5,004        

a lower student-teacher ratio in a classroom.                                   

      Districts may extend the school day either by increasing     5,006        

the amount of time allocated for each class, increasing the        5,007        

number of classes provided per day, offering optional              5,008        

academic-related after-school programs, providing                  5,009        

curriculum-related extra curricular activities, or establishing    5,010        

tutoring or remedial services for students who have demonstrated   5,011        

an educational need.  In accordance with section 3319.089 of the   5,012        

Revised Code, a district extending the school day pursuant to      5,013        

this division may utilize a participant of the work experience     5,014        

program who has a child enrolled in a public school in that        5,015        

district and who is fulfilling the work requirements of that                    

program by volunteering or working in that public school.  If the  5,016        

work experience program participant is compensated, the school     5,017        

district may use the funds distributed under this section for all  5,018        

or part of the compensation.                                                    

      Districts may extend the school year either through adding   5,021        

regular days of instruction to the school calendar or by           5,022        

providing summer programs.                                         5,023        

      (G)  Each district subject to division (F) of this section   5,026        

shall not expend any funds received under division (E) of this     5,027        

section in any school buildings that are not buildings with the    5,028        

highest concentration of need, unless there is a ratio of          5,029        

instructional personnel to students of no more than fifteen to     5,031        

                                                          112    

                                                                 
one in each kindergarten and first grade class in all buildings    5,032        

with the highest concentration of need.  THIS DIVISION DOES NOT    5,034        

REQUIRE THAT THE FUNDS USED IN BUILDINGS WITH THE HIGHEST          5,035        

CONCENTRATION OF NEED BE SPENT SOLELY TO REDUCE THE RATIO OF       5,036        

INSTRUCTIONAL PERSONNEL TO STUDENTS IN KINDERGARTEN AND FIRST      5,037        

GRADE.  A SCHOOL DISTRICT MAY SPEND THE FUNDS IN THOSE BUILDINGS   5,038        

IN ANY MANNER PERMITTED BY DIVISION (F)(3) OF THIS SECTION, BUT    5,039        

MAY NOT SPEND THE MONEY IN OTHER BUILDINGS UNLESS THE              5,040        

FIFTEEN-TO-ONE RATIO REQUIRED BY THIS DIVISION IS ATTAINED.        5,041        

      (H)(1)  By the first day of August of each fiscal year,      5,043        

each school district wishing to receive any funds under division   5,045        

(D) of this section shall certify SUBMIT to the department of      5,046        

education AN ESTIMATE OF its all-day kindergarten percentage.      5,048        

EACH DISTRICT SHALL UPDATE ITS ESTIMATE THROUGHOUT THE FISCAL      5,050        

YEAR IN THE FORM AND MANNER REQUIRED BY THE DEPARTMENT, AND THE    5,051        

DEPARTMENT SHALL ADJUST PAYMENTS UNDER THIS SECTION TO REFLECT     5,052        

THE UPDATES.                                                                    

      (2)  Annually by the end of December, the department of      5,054        

education, utilizing data from the information system established  5,056        

under section 3301.0714 of the Revised Code and after              5,057        

consultation with the legislative office of education oversight,   5,058        

shall determine for each school district subject to division (F)   5,059        

of this section whether in the preceding fiscal year the           5,060        

district's ratio of instructional personnel to students; and its   5,061        

number of kindergarten students receiving all-day kindergarten     5,062        

appear reasonable, given the amounts of money the district         5,063        

received for that fiscal year pursuant to divisions (D) and (E)    5,065        

of this section.  If the department is unable to verify from the   5,066        

data available that students are receiving reasonable amounts of   5,067        

instructional attention and all-day kindergarten, given the funds  5,068        

the district has received under this section and that class-size   5,070        

reduction funds are being used in school buildings with the        5,071        

highest concentration of need as required by division (G) of this  5,073        

section, the department shall conduct a more intensive             5,075        

                                                          113    

                                                                 
investigation to ensure that funds have been expended as required  5,076        

by this section.  The department shall file an annual report of    5,077        

its findings under this division with the chairpersons of the      5,078        

committees in each house of the general assembly dealing with      5,079        

finance and education.                                                          

      (I)  Any school district with a DPIA index less than one     5,081        

AND A THREE-YEAR AVERAGE FORMULA ADM EXCEEDING SEVENTEEN THOUSAND  5,084        

FIVE HUNDRED SHALL FIRST UTILIZE FUNDS RECEIVED UNDER THIS         5,085        

SECTION SO THAT, WHEN COMBINED WITH OTHER FUNDS OF THE DISTRICT,                

SUFFICIENT FUNDS EXIST TO PROVIDE ALL-DAY KINDERGARTEN TO AT       5,086        

LEAST THE NUMBER OF CHILDREN IN THE DISTRICT'S ALL-DAY             5,087        

KINDERGARTEN PERCENTAGE.  SUCH A DISTRICT SHALL EXPEND AT LEAST    5,088        

SEVENTY PER CENT OF THE REMAINING FUNDS RECEIVED UNDER THIS        5,089        

SECTION, AND ANY OTHER DISTRICT WITH A DPIA INDEX LESS THAN ONE    5,091        

shall expend at least seventy per cent of the ALL funds received   5,093        

under this section, for any of the following purposes:             5,096        

      (1)  The purchase of technology for instructional purposes;  5,099        

      (2)  All-day kindergarten;                                   5,101        

      (3)  Reduction of class sizes;                               5,103        

      (4)  Summer school remediation;                              5,105        

      (5)  Dropout prevention programs;                            5,107        

      (6)  Guaranteeing that all third graders are ready to        5,110        

progress to more advanced work;                                                 

      (7)  Summer education and work programs;                     5,112        

      (8)  Adolescent pregnancy programs;                          5,114        

      (9)  Head start or preschool programs;                       5,116        

      (10)  Reading improvement programs described by the          5,119        

department of education;                                                        

      (11)  Programs designed to ensure that schools are free of   5,122        

drugs and violence and have a disciplined environment conducive    5,123        

to learning;                                                                    

      (12)  Furnishing, free of charge, materials used in courses  5,126        

of instruction, except for the necessary textbooks required to be  5,127        

furnished without charge pursuant to section 3329.06 of the        5,128        

                                                          114    

                                                                 
Revised Code, to pupils living in families participating in Ohio   5,129        

works first in accordance with section 3313.642 of the Revised     5,130        

Code;                                                              5,131        

      (13)  School breakfasts provided pursuant to section         5,133        

3313.813 of the Revised Code.                                      5,135        

      Each district shall submit to the department, in such        5,137        

format and at such time as the department shall specify, a report  5,138        

on the programs for which it expended funds under this division.   5,139        

      (J)  If at any time the superintendent of public             5,141        

instruction determines that a school district has used the         5,142        

RECEIVING funds received under division (D) of this section for    5,144        

any purpose other than to provide all-day kindergarten as          5,145        

required under this section, or if the superintendent determines   5,146        

that a school district has enrolled less than the all-day          5,147        

kindergarten percentage reported for that fiscal year, the         5,148        

superintendent shall withhold from the funds otherwise due a THE   5,149        

district under this section the amount of the funds spent in       5,150        

violation of this section or a proportional amount of the funds    5,152        

as determined by the difference in the certified all-day                        

kindergarten percentage and the percentage actually enrolled in    5,153        

all-day kindergarten.                                              5,154        

      The superintendent shall also withhold an appropriate        5,156        

amount of funds otherwise due a district for any other misuse of   5,157        

funds not in accordance with this section.                         5,158        

      Sec. 3317.0212.  Divisions (B) and (C) of this section do    5,167        

not apply to a school district with a formula ADM of one humdred   5,169        

HUNDRED fifty or less.                                                          

      (A)  As used in this section:                                5,171        

      (1)  "Fundamental FY 1997 STATE AID" OR "FUNDAMENTAL FY      5,174        

1998 state aid" for a district means the total amount of state     5,175        

money received by the district under sections 3317.022 and         5,176        

3317.023 of the Revised Code before any deductions required by     5,178        

division (G), (J), (K), or (L) of section 3317.023 of the Revised  5,180        

Code, plus any amounts for which the district was eligible         5,181        

                                                          115    

                                                                 
pursuant to divisions (M), (N), and (O) of section 3317.024 and    5,182        

sections 3317.0212 and 3317.0213 of the Revised Code, as those     5,184        

divisions and sections existed in fiscal year 1998, plus the       5,185        

district's share of state funds for service center units IN THE    5,187        

APPLICABLE FISCAL YEAR AS REPORTED ON THE DEPARTMENT OF            5,188        

EDUCATION'S FORM "SF-12," ADJUSTED AS FOLLOWS:                     5,190        

      (a)  MINUS THE AMOUNT FOR TRANSPORTATION;                    5,192        

      (b)  MINUS ANY AMOUNTS FOR APPROVED PRESCHOOL HANDICAPPED    5,195        

UNITS;                                                                          

      (c)  MINUS ANY ADDITIONAL AMOUNT ATTRIBUTABLE TO THE         5,198        

REAPPRAISAL GUARANTEE OF DIVISION (C) OF SECTION 3317.04 OF THE    5,200        

REVISED CODE;                                                      5,201        

      (d)  PLUS THE AMOUNT DEDUCTED FOR PAYMENTS TO AN             5,203        

EDUCATIONAL SERVICE CENTER;                                        5,204        

      (e)  PLUS AN ESTIMATED PORTION OF THE STATE MONEY            5,206        

DISTRIBUTED IN THE APPLICABLE FISCAL YEAR TO OTHER SCHOOL          5,207        

DISTRICTS OR EDUCATIONAL SERVICE CENTERS FOR APPROVED UNITS,       5,208        

OTHER THAN PRESCHOOL HANDICAPPED OR GIFTED EDUCATION UNITS,        5,209        

ATTRIBUTABLE TO THE COSTS OF PROVIDING SERVICES IN THOSE UNITS TO  5,211        

STUDENTS ENTITLED TO ATTEND SCHOOL IN THE DISTRICT;                             

      (f)  MINUS AN ESTIMATED PORTION OF THE STATE MONEY           5,213        

DISTRIBUTED TO THE SCHOOL DISTRICT IN THE APPLICABLE FISCAL YEAR   5,214        

FOR APPROVED UNITS, OTHER THAN PRESCHOOL HANDICAPPED UNITS OR      5,215        

GIFTED EDUCATION UNITS, ATTRIBUTABLE TO THE COSTS OF PROVIDING     5,216        

SERVICES IN THOSE UNITS TO STUDENTS ENTITLED TO ATTEND SCHOOL IN   5,217        

ANOTHER SCHOOL DISTRICT;                                           5,218        

      (g)  PLUS ANY ADDITIONAL AMOUNT PAID IN THE APPLICABLE       5,221        

FISCAL YEAR PURSUANT TO THE VOCATIONAL EDUCATION RECOMPUTATION     5,222        

REQUIRED BY SECTION 45.12 OF AM. SUB. H.B. NO. 117 OF THE 121st    5,228        

GENERAL ASSEMBLY OR FORMER SECTION 50.22 OF AM. SUB. H.B. NO. 215  5,233        

OF THE 122nd GENERAL ASSEMBLY;                                     5,234        

      (h)  PLUS ANY ADDITIONAL AMOUNT PAID IN THE APPLICABLE       5,237        

FISCAL YEAR PURSUANT TO THE SPECIAL EDUCATION RECOMPUTATION        5,238        

REQUIRED BY FORMER DIVISION (I) OF SECTION 3317.023 OF THE         5,240        

                                                          116    

                                                                 
REVISED CODE;                                                      5,241        

      (i)  PLUS ANY AMOUNT PAID FOR EQUITY AID IN THE APPLICABLE   5,244        

FISCAL YEAR UNDER SECTION 3317.0213 OF THE REVISED CODE.           5,246        

      (2)  "Enhanced FY 1998 state aid" for a district means its   5,249        

fundamental FY 1998 state aid plus any amounts for which the       5,250        

district was eligible pursuant to division (K) of section          5,252        

3317.024 of the Revised Code, as that division existed in fiscal   5,253        

year 1998.                                                         5,254        

      (3)  "State basic aid" for a district in any fiscal year     5,256        

after FISCAL YEAR 1998 means the SUM OF THE FOLLOWING:             5,258        

      (a)  THE amount computed for the district for basic formula  5,260        

aid and special education aid FUNDING under divisions (A) and      5,263        

(C)(1) of section 3317.022 AND SECTIONS 3317.025 TO 3317.028 of    5,264        

the Revised Code and DPIA aid under section 3317.029 of the        5,266        

Revised Code in the current fiscal year but after BEFORE any       5,267        

deduction OR CREDIT required by division (B), (D), (E), (F), (G),  5,269        

(H), (I), (J), OR (K) of section 3317.023 OR DIVISION (J) OF       5,270        

SECTION 3317.029 of the Revised Code, plus any;                    5,272        

      (b)  ANY amounts for which the district is eligible          5,275        

pursuant to DIVISION (C) OF SECTION 3317.023, divisions (G) and    5,277        

(Q)(P) of section 3317.024, AND DIVISION (B) OF SECTION 3317.162   5,278        

of the Revised Code, plus any amounts;                             5,279        

      (c)  ANY EQUITY AID for which the district is eligible       5,282        

under section 3317.0213 of the Revised Code.                                    

      (4)  "FY 1998 ADM" for a district means the district's       5,286        

average daily membership as described by division (A) of section   5,287        

3317.02 of the Revised Code, for fiscal year 1998, plus the        5,289        

district's average daily membership based upon full-time                        

equivalency in approved vocational units as certified by the       5,291        

district in fiscal year 1998 under division (A)(2) of section      5,293        

3317.03 of the Revised Code and the district's average daily       5,295        

membership of all handicapped children, except for preschool                    

handicapped children, in classes in the district as certified in   5,296        

fiscal year 1998 under division (A)(3) of section 3317.03 of the   5,298        

                                                          117    

                                                                 
Revised Code, as those divisions and sections existed in fiscal    5,299        

year 1998.                                                                      

      (5)  "District's share of state funds for service center     5,301        

units" means an estimated portion of the state money distributed   5,302        

to educational service centers for approved units in fiscal year   5,303        

1998 attributable to the costs of providing services in such       5,304        

units to students, other than preschool handicapped students,      5,305        

residing in the district.                                                       

      (6)  "Fundamental FY 1997 state aid" for a district means    5,307        

the total amount of state money received by the district under     5,309        

sections 3317.022 and 3317.023 of the Revised Code before any      5,310        

deductions required by division (G), (J), (K), or (L) of section   5,311        

3317.023 of the Revised Code, plus any amounts for which the       5,312        

district was eligible pursuant to divisions (M), (N), and (O) of   5,313        

section 3317.024 and sections 3317.0212 and 3317.0213 of the       5,314        

Revised Code, as those divisions and sections existed in fiscal    5,316        

year 1997, plus the district's share of state funds for service                 

center units.                                                      5,317        

      (B)  UPON REQUEST OF THE DEPARTMENT OF EDUCATION, THE        5,319        

TREASURER OF ANY SCHOOL DISTRICT OR EDUCATIONAL SERVICE CENTER     5,320        

SHALL FURNISH DATA NEEDED TO CALCULATE THE AMOUNTS SPECIFIED IN    5,321        

DIVISIONS (A)(1)(e) AND (f) OF THIS SECTION.  The department of    5,322        

education shall compute the state basic aid guarantee for each     5,324        

school district for the fiscal year as follows:                    5,325        

      (1)  Subtract the amount of state basic aid from the amount  5,328        

of fundamental FY 1998 state aid.  If a negative number, this      5,329        

computation shall be deemed to be zero;.                           5,330        

      (2)  Compute the following amounts:                          5,332        

      (a)  Formula ADM X (state basic aid/formula ADM);            5,335        

      (b)  Formula THE GREATER OF FORMULA ADM OR THREE-YEAR        5,337        

AVERAGE FORMULA ADM X (fundamental FY 1998 state aid/FY 1998       5,340        

ADM).                                                                           

      (3)  If the amount computed under division (B)(2)(b) of      5,343        

this section is greater than the amount computed under division                 

                                                          118    

                                                                 
(B)(2)(a) of this section, determine the amount by which it is     5,345        

greater.  If the amount computed under division (B)(2)(b) of this  5,346        

section is not greater than the amount computed under division     5,347        

(B)(2)(a) of this section, this computation shall be deemed to be  5,348        

zero.                                                                           

      (4)  Except as provided in division (C) of this section,     5,351        

the department shall determine for each district the lesser of     5,352        

the amounts computed in divisions (B)(1) and (2)(3) of this        5,354        

section and, if greater than zero, pay the district that amount.   5,356        

      (C)(1)  In fiscal year 1999, if a district's amount under    5,359        

division (B)(4) of this section is zero, the department shall      5,360        

determine CALCULATE for each such district the following:          5,362        

      (2)  Add to SUM OF the district's state basic aid for        5,364        

fiscal year 1999 the sum of PLUS the transportation portion of     5,366        

state aid computed under division (D) of section 3317.022 of the   5,369        

Revised Code for the district for fiscal year 1999;                5,370        

      (3).  If a district's enhanced FY 1998 state aid is greater  5,373        

than the district's amount calculated in division (C)(2) of this   5,375        

section THAT SUM, then the department shall pay the district IN    5,376        

FISCAL YEAR 1999 one hundred per cent of the difference OR THE     5,377        

AMOUNT REQUIRED BY DIVISION (B)(4) OF THIS SECTION, WHICHEVER IS   5,378        

GREATER.                                                                        

      (D)(1)  The state basic aid guarantee in any fiscal year     5,380        

for a school district with a formula ADM of one hundred fifty or   5,381        

less shall be the greatest of the following amounts:               5,382        

      (a)  The district's state basic aid for the fiscal year;     5,384        

      (b)  The district's fundamental FY 1998 state aid;           5,386        

      (c)  The district's fundamental FY 1997 state aid;           5,388        

      (2)  If in any fiscal year the state basic aid for a school  5,390        

district with a formula ADM of one hundred fifty or less is less   5,391        

than the guarantee amount determined for the district under        5,392        

division (D)(1) of this section, the department of education       5,393        

shall pay the district the amount of the difference.               5,394        

      Sec. 3317.0213.  No money shall be distributed under this    5,403        

                                                          119    

                                                                 
section after fiscal year 2001.                                    5,404        

      (A)  As used in this section:                                5,406        

      (1)  "ADM" for any school district means:                    5,408        

      (a)  In fiscal year 1999, the average daily membership       5,411        

reported in fiscal year 1998 under division (A) of section         5,412        

3317.03 of the Revised Code as that section existed in fiscal      5,413        

year 1998, less one-half of the kindergarten students, less        5,414        

three-quarters of the students enrolled in a joint vocational      5,415        

school district, and less any students enrolled in preschool       5,416        

handicapped units approved under division (E) of section 3317.05   5,417        

of the Revised Code, as that section existed in fiscal year FY     5,419        

1998 ADM;                                                                       

      (b)  In fiscal years 2000 and 2001, the formula ADM          5,421        

reported for the previous fiscal year.                             5,422        

      (2)  "Average taxable value" means the average of the        5,425        

amounts certified for a district in the second, third, and fourth  5,426        

preceding fiscal years under divisions (A)(1) and (2) of section   5,427        

3317.021 of the Revised Code.                                                   

      (3)(a)  "Valuation per pupil" for a district in MEANS:       5,429        

      (a)  IN fiscal year 1999 means, the district's average       5,433        

taxable value, divided by the district's average daily membership  5,435        

for fiscal year 1998, as described in division (A)(1)(a) of this   5,436        

section. FY 1998 ADM;                                              5,437        

      (b)  "Valuation per pupil" for a district in IN a fiscal     5,439        

year that occurs after fiscal year 1999 means, the district's      5,440        

average taxable value, divided by the district's formula ADM for   5,443        

the preceding fiscal year.                                                      

      (4)  "Threshold valuation" means:                            5,445        

      (a)  In fiscal year 1999, the adjusted valuation per pupil   5,448        

of the school district with the two hundred twenty-ninth lowest    5,449        

adjusted valuation per pupil in the state, according to data       5,451        

available at the time of the computation under division (B) of     5,452        

this section;                                                                   

      (b)  In fiscal year 2000, the adjusted valuation per pupil   5,454        

                                                          120    

                                                                 
of the district with the one hundred sixty-third lowest such       5,456        

valuation in the state;                                                         

      (c)  In fiscal year 2001, the adjusted valuation per pupil   5,458        

of the district with the one hundred eighteenth lowest such        5,459        

valuation in the state.                                            5,460        

      (5)  "Adjusted valuation per pupil" for a district means an  5,462        

amount calculated in accordance with the following formula:        5,463        

              The district's valuation per pupil -                 5,465        

      ($30,000 X (one minus the district's income factor))         5,466        

      (6)  "Millage rate" means .012 in fiscal year 1999, .011 in  5,468        

fiscal year 2000, and .010 in fiscal year 2001.                    5,469        

      (B)  Beginning in fiscal year 1993, during August of each    5,471        

fiscal year, the department of education shall distribute to each  5,472        

school district meeting the requirements of section 3317.01 of     5,473        

the Revised Code whose adjusted valuation per pupil is less than   5,474        

the threshold valuation, an amount calculated in accordance with   5,475        

the following formula:                                             5,476        

            (The threshold valuation - the district's              5,478        

                  adjusted valuation per pupil)                    5,479        

                      X millage rate X ADM                         5,480        

      Sec. 3317.0214.  As used in this section, "average taxable   5,490        

value" has the same meaning as in division (A)(2) of section       5,492        

3317.0213 of the Revised Code.                                                  

      Beginning in fiscal year 1993, during each August, the       5,494        

department of education ANNUALLY shall distribute to each school   5,495        

district with a formula ADM less than one thousand and an average  5,497        

taxable value equal to or less than eighty-five thousand dollars   5,498        

per pupil in formula ADM, an amount equal to fifty dollars         5,500        

multiplied by any amount by which one thousand exceeds the         5,501        

district's formula ADM.                                            5,502        

      Sec. 3317.0215.  (A)  As used in this section, "total:       5,511        

      (1)  "TOTAL effective operating tax rate" has MEANS the      5,514        

same meaning as in AMOUNT CERTIFIED UNDER DIVISION (A)(5) OF       5,515        

section 3317.021 of the Revised Code, and "equalized.              5,517        

                                                          121    

                                                                 
      (2)  "EQUALIZED tax rate" of a school district means the     5,520        

amount by which a district's total effective operating tax rate                 

exceeds two and three-tenths per cent.                             5,521        

      (3)  "STATE TAXABLE VALUE PER PUPIL" MEANS THE QUOTIENT      5,524        

OBTAINED BY DIVIDING THE TOTAL TAXABLE VALUE OF ALL CITY, LOCAL,   5,525        

AND EXEMPTED VILLAGE SCHOOL DISTRICTS IN THE STATE BY THE SUM OF   5,526        

THE FORMULA ADMs OF ALL CITY, LOCAL, AND EXEMPTED VILLAGE SCHOOL   5,527        

DISTRICTS IN THE STATE.                                            5,528        

      (4)  "DISTRICT'S TAXABLE VALUE PER PUPIL" MEANS THE          5,530        

QUOTIENT OBTAINED BY DIVIDING THE TOTAL TAXABLE VALUE OF THE       5,531        

SCHOOL DISTRICT BY ITS FORMULA ADM.                                5,532        

      (B)  Upon receiving the certifications under division (A)    5,535        

of section 3317.021 of the Revised Code, the department of         5,536        

education shall determine the equalized tax rate for each city,    5,537        

local, and exempted village school district.  If the total         5,538        

effective operating tax rate of a district is greater than two     5,539        

and three-tenths per cent, the district shall receive a payment    5,540        

computed by multiplying the lesser of two-tenths of one per cent   5,541        

or the equalized tax rate by the amount by which the state         5,542        

taxable value per pupil exceeds the district's total taxable       5,544        

value per pupil TIMES THE DISTRICT'S FORMULA ADM.                  5,545        

      Sec. 3317.0216.  (A)  As used in this section:               5,554        

      (1)  "Total taxes charged and payable for current expenses"  5,557        

means the sum of the taxes charged and payable as certified under  5,558        

division (A)(3) of section 3317.021 of the Revised Code, and the   5,560        

tax liability for the preceding year under any school district     5,561        

income tax levied by the district pursuant to Chapter 5748. of     5,562        

the Revised Code to the extent the revenue from the income tax is  5,563        

allocated or apportioned to current expenses.                      5,564        

      (2)  "State equalization enhancement payments" means any     5,566        

payment made to a school district pursuant to section 3317.0215    5,567        

of the Revised Code for the preceding fiscal year.                 5,568        

      (3)  "Charge-off amount" means the product obtained by       5,570        

multiplying two and three-tenths per cent by adjusted total        5,571        

                                                          122    

                                                                 
taxable value.                                                     5,572        

      (4)  "Local share percentage" means a percentage equal to    5,575        

one minus the state share percentage.                                           

      (5)  "Total receipts available for current expenses" of a    5,578        

school district means the sum of total taxes charged and payable   5,579        

for current expenses and the district's state equalization                      

enhancement payments.                                              5,580        

      (6)(5)  "Local share of special education expenses" means    5,582        

the district's local share percentage X the formula amount for     5,584        

the year for which the aid is calculated X the district's total    5,585        

special education weight.                                                       

      (7)  "State share percentage" and "total special education   5,587        

weight" have the same meanings AND RELATED SERVICES ADDITIONAL     5,588        

WEIGHTED COSTS" HAS THE SAME MEANING as in DIVISION (C)(3) OF      5,590        

section 3317.022 of the Revised Code.                                           

      (B)  Upon receiving the certifications under section         5,592        

3317.021 of the Revised Code, the department of education shall    5,593        

determine for each city, local, and exempted village school        5,595        

district whether the district's charge-off amount is greater than  5,596        

the district's total receipts available for current expenses, and  5,597        

if it is, shall pay the district the amount of the difference.  A  5,598        

payment shall not be made to any school district for which the     5,599        

computation under division (A) of section 3317.022 of the Revised  5,600        

Code equals zero.                                                  5,601        

      (C)(1)  If a district's charge-off amount is equal to or     5,603        

greater than its total receipts available for current expenses,    5,604        

the department shall, in addition to the payment required under    5,605        

division (B) of this section, pay the district the amount of the   5,606        

local share of special education expenses.                         5,607        

      (2)  If a district's charge-off amount is less than its      5,609        

total receipts available for current expenses, the department      5,610        

shall pay the district the difference between the ANY AMOUNT BY    5,611        

WHICH ITS local share of special education expenses and the        5,614        

amount by which the district's AND RELATED SERVICES ADDITIONAL     5,615        

                                                          123    

                                                                 
WEIGHTED COSTS EXCEEDS ITS total receipts available for current    5,616        

expenses exceeds MINUS its charge-off amount.                      5,617        

      Sec. 3317.03.   Notwithstanding divisions (A)(1), (B)(1),    5,627        

and (C) of this section, any student enrolled in kindergarten      5,628        

more than half time shall be reported as one-half student under    5,629        

this section.                                                                   

      (A)  The superintendent of each city and exempted village    5,632        

school district and of each educational service center shall, for  5,633        

the schools under the superintendent's supervision, certify to     5,634        

the state board of education on or before the fifteenth day of     5,635        

October in each year for the first full school week in October     5,636        

the formula ADM, which shall consist of the average daily          5,637        

membership during such week of the sum of the following:           5,638        

      (1)  On an FTE basis, the number of students in grades       5,641        

kindergarten through twelve receiving any educational services     5,642        

from the district, except that the following categories of         5,643        

students shall not be included in the determination:               5,644        

      (a)  Students enrolled in adult education classes;           5,646        

      (b)  Adjacent or other district students enrolled in the     5,648        

district under an open enrollment policy pursuant to section       5,649        

3313.98 of the Revised Code;                                       5,650        

      (c)  STUDENTS RECEIVING SERVICES IN THE DISTRICT PURSUANT    5,652        

TO A COMPACT, COOPERATIVE EDUCATION AGREEMENT, OR A CONTRACT, BUT  5,653        

WHO ARE ENTITLED TO ATTEND SCHOOL IN ANOTHER DISTRICT PURSUANT TO  5,654        

SECTION 3313.64 OR 3313.65 OF THE REVISED CODE;                                 

      (d)  Students for whom tuition is payable pursuant to        5,657        

sections 3317.081 and 3323.141 of the Revised Code.                5,658        

      (2)  On an FTE basis, the number of students entitled to     5,661        

attend school in the district pursuant to section 3313.64 or       5,662        

3313.65 of the Revised Code, but receiving educational services    5,664        

in grades kindergarten through twelve from one or more of the                   

following entities:                                                5,665        

      (a)  A community school pursuant to Chapter 3314. of the     5,668        

Revised Code or Section 50.52 of Amended Substitute House Bill     5,669        

                                                          124    

                                                                 
No. 215 of the 122nd general assembly;                                          

      (b)  An alternative school pursuant to sections 3313.974 to  5,671        

3313.979 of the Revised Code as described in division (I)(2)(a)    5,673        

or (b) of this section;                                                         

      (c)  A college pursuant to Chapter 3365. of the Revised      5,675        

Code;                                                                           

      (d)  An adjacent or other school district under an open      5,678        

enrollment policy adopted pursuant to section 3313.98 of the       5,679        

Revised Code;                                                      5,680        

      (e)  An educational service center or cooperative education  5,683        

district;                                                                       

      (f)  Another school district under a cooperative education   5,686        

agreement, COMPACT, OR CONTRACT.                                                

      (3)  One-fourth of the number of students enrolled both in   5,688        

a joint vocational school district and in the district, but who    5,689        

are not receiving regular education services in the school         5,690        

district.                                                                       

      (B)  To enable the department of education to obtain the     5,693        

data needed to complete the calculation of payments pursuant to    5,694        

this chapter, in addition to the formula ADM, each superintendent  5,696        

shall report separately the following student counts:              5,697        

      (1)  The total average daily membership in regular day       5,699        

classes included in the report under division (A)(1) or (2) of     5,700        

this section for kindergarten, and each of grades one through      5,701        

twelve in schools under the superintendent's supervision;          5,703        

      (2)  The average daily membership of all handicapped         5,705        

preschool children included in a unit approved for the district    5,706        

under section 3317.05 of the Revised Code, in accordance with      5,707        

rules adopted under that section;                                  5,708        

      (3)  The number of children entitled to attend school in     5,710        

the district pursuant to section 3313.64 or 3313.65 of the         5,711        

Revised Code who are participating in a pilot project scholarship  5,713        

program established under sections 3313.974 to 3313.979 of the     5,714        

Revised Code as described in division (I)(2)(a) or (b) of this     5,716        

                                                          125    

                                                                 
section, are enrolled in a college under Chapter 3365. of the      5,717        

Revised Code, are enrolled in an adjacent or other school          5,718        

district under section 3313.98 of the Revised Code, are enrolled   5,719        

in a community school established under Chapter 3314. of the       5,721        

Revised Code or Section 50.52 of Amended Substitute House Bill     5,722        

No. 215 of the 122nd general assembly, or are participating in a   5,723        

program operated by a county MR/DD board or a state institution;   5,725        

      (4)  The number of pupils enrolled both in schools under     5,727        

the superintendent's supervision and in joint vocational schools,  5,729        

but who are not in regular day classes in the school district;     5,730        

      (5)  The average daily membership of handicapped children    5,733        

reported under division (A)(1) or (2) of this section receiving    5,734        

category one special education services, described in division     5,735        

(A) of section 3317.013 of the Revised Code;                       5,736        

      (6)  The average daily membership of handicapped children    5,738        

reported under division (A)(1) or (2) of this section receiving    5,739        

category two special education services, described in division     5,740        

(B) of section 3317.013 of the Revised Code;                       5,741        

      (7)  The average daily membership of handicapped children    5,743        

reported under division (A)(1) or (2) of this section identified   5,745        

as having any of the handicaps specified in division (F)(3) of     5,746        

section 3317.02 of the Revised Code;                                            

      (8)  The average daily membership of pupils reported under   5,748        

division (A)(1) or (2) of this section enrolled in vocational      5,750        

education programs or classes operated by the school district or   5,751        

by another district other than a joint vocational school district               

or by an educational service center;                               5,752        

      (9)  The average number of children transported by the       5,754        

school district ON BOARD-OWNED OR CONTRACTOR-OWNED AND OPERATED    5,755        

BUSES, reported in accordance with rules adopted by the            5,757        

department of education.                                                        

      (C)  Except as otherwise provided in this section for        5,759        

kindergarten students, the average daily membership in divisions   5,760        

(B)(1) to (8) of this section shall be based upon the number of    5,762        

                                                          126    

                                                                 
full-time equivalent students.  The state board of education       5,763        

shall adopt rules defining full-time equivalent students and for   5,764        

determining the average daily membership therefrom for the         5,766        

purposes of divisions (A) and (B) of this section.  No child       5,767        

shall be counted as more than a total of one child in the sum of   5,769        

the average daily memberships of a school district under division  5,770        

(A) or under divisions (B)(1) to (8) of this section.  Based on    5,771        

the information reported under this section, the department of     5,772        

education shall determine the total student count, as defined in   5,773        

section 3301.011 of the Revised Code, for each school district.    5,774        

      (D)  The superintendent of each joint vocational and         5,776        

cooperative education school district shall certify to the         5,778        

superintendent of public instruction, in a manner prescribed by                 

the state board of education, the applicable average daily         5,779        

memberships for all students in the joint vocational or            5,781        

cooperative education school district, also indicating the city,   5,782        

local, or exempted village school district of residence for each   5,783        

pupil.                                                                          

      (E)  In each school of each city, local, exempted village,   5,785        

joint vocational, and cooperative education school district there  5,786        

shall be maintained a record of school membership, which record    5,787        

shall accurately show, for each day the school is in session, the  5,788        

actual membership enrolled in regular day classes.  For the        5,789        

purpose of determining average daily membership, the membership    5,790        

figure of any school shall not include any pupils except those     5,791        

pupils described by division (A) of this section.  The record of   5,793        

membership for each school shall be maintained in such manner      5,794        

that no pupil shall be counted as in membership prior to the       5,795        

actual date of entry in the school and also in such manner that    5,796        

where for any cause a pupil permanently withdraws from the school  5,797        

that pupil shall not be counted as in membership from and after    5,799        

the date of such withdrawal.  There shall not be included in the   5,800        

membership of any school any of the following:                                  

      (1)  Any pupil who has graduated from the twelfth grade of   5,803        

                                                          127    

                                                                 
a public high school;                                                           

      (2)  Any pupil who is not a resident of the state;           5,805        

      (3)  Any pupil who was enrolled in the schools of the        5,808        

district during the previous school year when tests were                        

administered under section 3301.0711 of the Revised Code but did   5,809        

not take one or more of the tests required by that section and     5,810        

was not excused pursuant to division (C)(1) of that section;       5,811        

      (4)  Any pupil who has attained the age of twenty-two        5,813        

years, except for the following:                                   5,814        

      (a)  Persons suffering from tuberculosis and receiving       5,816        

treatment in any approved state, county, district, or municipal    5,817        

tuberculosis hospital who have not graduated from the twelfth      5,818        

grade of a public high school;                                     5,819        

      (b)  Veterans of the armed services whose attendance was     5,821        

interrupted before completing the recognized twelve-year course    5,822        

of the public schools by reason of induction or enlistment in the  5,823        

armed forces and who apply for reenrollment in the public school   5,824        

system of their residence not later than four years after          5,825        

termination of war or their honorable discharge.                   5,826        

      If, however, any veteran described by division (E)(4)(b) of  5,829        

this section elects to enroll in special courses organized for     5,830        

veterans for whom tuition is paid under the provisions of federal  5,831        

laws, or otherwise, that veteran shall not be included in average  5,833        

daily membership.                                                               

      Notwithstanding division (E)(3) of this section, the         5,835        

membership of any school may include a pupil who did not take a    5,836        

test required by section 3301.0711 of the Revised Code if the      5,837        

superintendent of public instruction grants a waiver from the      5,838        

requirement to take the test to the specific pupil.  The           5,839        

superintendent may grant such a waiver only for good cause in      5,840        

accordance with rules adopted by the state board of education.     5,841        

      The average daily membership figure of any local, city, or   5,843        

exempted village school district shall be determined by dividing   5,844        

the figure representing the sum of the number of pupils enrolled   5,845        

                                                          128    

                                                                 
during each day the school of attendance is actually open for      5,846        

instruction during the first full school week in October by the    5,848        

total number of days the school was actually open for instruction  5,849        

during that week.  For purposes of state funding, "enrolled"       5,850        

persons are only those pupils who are attending school, those who  5,851        

have attended school during the current school year and are        5,852        

absent for authorized reasons, and those handicapped children      5,853        

currently receiving home instruction.                              5,854        

      The average daily membership figure of any joint vocational  5,856        

or cooperative education school district shall be determined in    5,857        

accordance with rules adopted by the state board of education.     5,858        

      (F)(1)  If the formula ADM for the first full school week    5,861        

in February is at least three per cent greater than that           5,862        

certified for the first full school week in the preceding          5,863        

October, the superintendent of schools of any city or exempted     5,864        

village school district or educational service center shall        5,865        

certify such increase to the superintendent of public              5,866        

instruction.  Such certification shall be submitted no later than  5,867        

the fifteenth day of February.  For the balance of the fiscal      5,868        

year, beginning with the February payments, the superintendent of  5,869        

public instruction shall use the increased formula ADM in          5,871        

calculating or recalculating the amounts to be allocated in                     

accordance with section 3317.022 of the Revised Code.  In no       5,874        

event shall the superintendent use an increased membership         5,875        

certified to the superintendent after the fifteenth day of         5,876        

February.                                                                       

      (2)  If during the first full school week in February the    5,878        

total number of units for preschool handicapped PRESCHOOL          5,880        

children that are eligible for approval under division (B) of      5,881        

section 3317.05 of the Revised Code exceeds the number of such     5,882        

units that have been approved for the year under such division,    5,883        

the superintendent of schools of any city, exempted village, or    5,885        

cooperative education school district or educational service       5,886        

center shall make the certifications required by this section for  5,887        

                                                          129    

                                                                 
such week.  If the state board of education determines additional  5,888        

units can be approved for the fiscal year within any limitations   5,889        

set forth in the acts appropriating moneys for the funding of      5,890        

such units, the board shall approve additional units for the       5,891        

fiscal year on the basis of such average daily membership.  For    5,892        

each unit so approved, the department of education shall pay an    5,893        

amount computed in the manner prescribed in section 3317.161 or    5,895        

3317.19 AND SECTION 3317.162 of the Revised Code.                               

      (3)  If during the first full school week in February the    5,897        

total number of special education units that are eligible for      5,898        

approval under division (D)(1) of section 3317.05 of the Revised   5,899        

Code for a joint vocational school district exceeds the number of  5,900        

those units that have been approved for the year under that        5,901        

division, the superintendent of the district shall make the                     

certifications required by this section for that week.  If the     5,902        

state board of education determines additional units can be        5,903        

approved for the fiscal year within any limitations set forth in   5,904        

the acts appropriating moneys for the funding of such units, the   5,905        

state board shall approve additional units for the fiscal year on  5,906        

the basis of the average daily membership certified.  For each                  

unit approved, the department of education shall pay an amount     5,907        

computed in the manner prescribed by section 3317.16 of the        5,908        

Revised Code.                                                                   

      (G)(1)(a)  The superintendent of an institution operating a  5,910        

special education program pursuant to section 3323.091 of the      5,911        

Revised Code shall, for the programs under such superintendent's   5,913        

supervision, certify to the state board of education the average   5,914        

daily membership of all handicapped children in classes or         5,915        

programs approved annually by the state board of education, in     5,916        

the manner prescribed by the superintendent of public              5,917        

instruction.                                                                    

      (b)  The superintendent of an institution with vocational    5,920        

education units approved under division (A) of section 3317.05 of  5,921        

the Revised Code shall, for the units under the superintendent's   5,923        

                                                          130    

                                                                 
supervision, certify to the state board of education the average   5,924        

daily membership in those units, in the manner prescribed by the   5,925        

superintendent of public instruction.                              5,926        

      (2)  The superintendent of each county MR/DD board that      5,928        

maintains special education classes or units approved by the       5,929        

state board of education pursuant to section 3317.05 of the        5,931        

Revised Code shall do both of the following:                       5,932        

      (a)  Certify to the state board, in the manner prescribed    5,935        

by the board, the average daily membership in classes and units    5,936        

approved under division (D)(1) of section 3317.05 of the Revised   5,937        

Code for each school district that has placed children in the      5,938        

classes or units;                                                               

      (b)  Certify to the state board, in the manner prescribed    5,940        

by the board, the average daily membership in preschool            5,942        

handicapped units approved under division (B) of section 3317.05   5,944        

of the Revised Code.                                                            

      (3)  If during the first full school week in February the    5,946        

average daily membership of the classes or units maintained by     5,947        

the county MR/DD board that are eligible for approval under        5,948        

division (D)(1) of section 3317.05 of the Revised Code is greater  5,950        

than the average daily membership for the preceding October, the   5,951        

superintendent of the board shall make the certifications          5,952        

required by this section for such week and, if during the first    5,954        

full school week in February the average daily membership of the   5,955        

units maintained by the county MR/DD board that are eligible for   5,956        

approval under division (B) of section 3317.05 of the Revised      5,957        

Code is greater than the average daily membership for the          5,958        

preceding October, the superintendent shall certify the average    5,959        

daily membership for the first full school week in February for    5,960        

such units to the state board of education.  If the state board    5,961        

determines that additional classes or units can be approved for    5,962        

the fiscal year within any limitations set forth in the acts       5,963        

appropriating moneys for the funding of such classes and units,    5,964        

the board shall approve and fund additional units for the fiscal   5,965        

                                                          131    

                                                                 
year on the basis of such average daily membership.  For each                   

unit so approved, the department of education shall pay an amount  5,966        

computed in the manner prescribed in section SECTIONS 3317.161     5,968        

AND 3317.162 of the Revised Code.                                               

      (H)  Except as provided in division (I) of this section,     5,971        

when any city, local, or exempted village school district          5,972        

provides instruction for a nonresident pupil whose attendance is   5,973        

unauthorized attendance as defined in section 3327.06 of the       5,974        

Revised Code, that pupil's membership shall not be included in     5,975        

that district's membership figure used in the calculation of that  5,976        

district's formula ADM or included in the determination of any     5,977        

unit approved for the district under section 3317.05 of the        5,978        

Revised Code.  The reporting official shall report separately the  5,979        

average daily membership of all pupils whose attendance in the     5,980        

district is unauthorized attendance, and the membership of each    5,981        

such pupil shall be credited to the school district in which the   5,982        

pupil is entitled to attend school under division (B) of section   5,983        

3313.64 or section 3313.65 of the Revised Code as determined by    5,984        

the department of education.                                       5,985        

      (I)(1)  A school district admitting a scholarship student    5,987        

of a pilot project district pursuant to division (C) of section    5,988        

3313.976 of the Revised Code may count such student in its         5,989        

average daily membership.                                                       

      (2)  In any year for which funds are appropriated for pilot  5,991        

project scholarship programs, a school district implementing a     5,992        

state-sponsored pilot project scholarship program that year        5,993        

pursuant to sections 3313.974 through 3313.979 of the Revised      5,995        

Code may count in average daily membership:                                     

      (a)  All children residing in the district and utilizing a   5,997        

scholarship to attend kindergarten in any alternative school, as   5,998        

defined in division (A)(9) of section 3313.974 of the Revised      5,999        

Code;                                                                           

      (b)  All children who were enrolled in the district in the   6,001        

preceding year who are utilizing a scholarship to attend any such  6,002        

                                                          132    

                                                                 
alternative school.                                                6,003        

      Sec. 3317.05.  (A)  For the purpose of calculating payments  6,013        

under sections 3317.16 and, 3317.161, AND 3317.162 of the Revised  6,015        

Code, the state board of education shall determine for each joint  6,016        

vocational school district and institution, by the last day of     6,017        

January of each year and based on information certified under      6,018        

section 3317.03 of the Revised Code, the number of vocational      6,020        

education units or fractions of units approved by the state board  6,021        

on the basis of standards and rules adopted by the state board.    6,022        

As used in this division, "institution" means an institution       6,023        

operated by a department specified in section 3323.091 of the      6,024        

Revised Code and that provides vocational education programs       6,025        

under the supervision of the division of vocational education of   6,026        

the department of education that meet the standards and rules for  6,027        

these programs, including licensure of professional staff          6,028        

involved in the programs, as established by the state board of     6,029        

education.                                                                      

      (B)  For the purpose of calculating payments under sections  6,032        

3317.024, 3317.11, 3317.161, 3317.162, and 3317.19 of the Revised  6,033        

Code, the state board shall determine, based on information        6,035        

certified under section 3317.03 of the Revised Code, the           6,036        

following by the last day of January of each year for each         6,037        

educational service center, for each school district, including    6,038        

each cooperative education school district, for each institution   6,039        

eligible for payment under section 3323.091 of the Revised Code,   6,041        

and for each county MR/DD board:  the number of classes operated   6,042        

by the school district, service center, institution, or county     6,043        

MR/DD board for handicapped preschool children, or fraction        6,045        

thereof, including in the case of a district or service center     6,046        

that is a funding agent, classes taught by a licensed teacher      6,047        

employed by that district or service center under section                       

3313.841 of the Revised Code, approved annually by the state       6,048        

board on the basis of standards and rules adopted by the state     6,050        

board.                                                                          

                                                          133    

                                                                 
      (C)  For the purpose of calculating payments under sections  6,052        

3317.024, 3317.11, 3317.161, 3317.162, and 3317.19 of the Revised  6,054        

Code, the state board shall determine, based on information        6,055        

certified under section 3317.03 of the Revised Code, the           6,057        

following by the last day of January of each year for each school  6,059        

district, including each cooperative education school district,    6,060        

for each institution eligible for payment under section 3323.091   6,061        

of the Revised Code, and for each county MR/DD board:  the number  6,062        

of preschool handicapped related services units for child study,   6,063        

occupational, physical, or speech and hearing therapy, special     6,064        

education supervisors, and special education coordinators          6,065        

approved annually by the state board on the basis of standards     6,067        

and rules adopted by the state board.                                           

      (D)  For the purpose of calculating payments under sections  6,070        

3317.16 and, 3317.161, AND 3317.162 of the Revised Code, the       6,072        

state board shall determine, based on information certified under  6,073        

section 3317.03 of the Revised Code, the following by the last     6,074        

day of January of each year for each joint vocational school       6,075        

district, for each institution eligible for payment under section  6,076        

3323.091 of the Revised Code, and for each county MR/DD board:     6,077        

      (1)  The number of classes operated by a joint vocational    6,079        

school district, institution, or county MR/DD board for            6,081        

handicapped children other than handicapped preschool children,    6,082        

or fraction thereof, approved annually by the state board on the   6,084        

basis of standards and rules adopted by the state board;                        

      (2)  The number of related services units for children       6,086        

other than handicapped preschool children for child study,         6,087        

occupational, physical, or speech and hearing therapy, special     6,088        

education supervisors, and special education coordinators          6,089        

approved annually by the state board on the basis of standards     6,091        

and rules adopted by the state board.                                           

      (E)  All of the arithmetical calculations made under this    6,093        

section shall be carried to the second decimal place.  The total   6,094        

number of units for school districts, service centers, and         6,096        

                                                          134    

                                                                 
institutions approved annually by the state board under this       6,097        

section shall not exceed the number of units included in the       6,098        

state board's estimate of cost for these units and appropriations  6,100        

made for them by the general assembly.                             6,101        

      In the case of units described in division (D)(1) of this    6,104        

section operated by county MR/DD boards and institutions eligible  6,106        

for payment under section 3323.091 of the Revised Code, the state  6,107        

board shall approve only units for persons who are under age       6,108        

twenty-two on the first day of the academic year, but not less     6,109        

than six years of age on the thirtieth day of September of that    6,110        

year, except that such a unit may include one or more children     6,111        

who are under six years of age on the thirtieth day of September   6,112        

if such children have been admitted to the unit pursuant to rules  6,113        

of the state board.  In the case of handicapped preschool units    6,114        

described in division (B) of this section operated by county       6,116        

MR/DD boards and institutions eligible for payment under section   6,117        

3323.091 of the Revised Code, the state board shall approve only   6,118        

preschool units for children who are under age six but not less    6,119        

than age three on the thirtieth day of September of the academic   6,120        

year, except that such a unit may include one or more children     6,121        

who are under age three or are age six or over on the thirtieth    6,122        

day of September if such children have been admitted to the unit   6,123        

pursuant to rules of the state board of education.  The number of  6,124        

units for county MR/DD boards and institutions eligible for        6,126        

payment under section 3323.091 of the Revised Code approved by     6,127        

the state board under this section shall not exceed the number                  

that can be funded with appropriations made for such purposes by   6,128        

the general assembly.                                              6,129        

      No unit shall be approved under divisions (B) to (D) of      6,132        

this section unless a plan has been submitted and approved under   6,133        

Chapter 3323. of the Revised Code.                                              

      (F)  For fiscal year 1999 only, the department shall         6,135        

approve units or fractions thereof for gifted children on the      6,136        

basis of standards and rules adopted by the board.                 6,137        

                                                          135    

                                                                 
      Sec. 3317.051.  (A)(1)  Notwithstanding sections 3317.05     6,146        

and 3317.11 of the Revised Code, a unit funded pursuant to         6,147        

division (Q)(P)(1) of section 3317.024 or division (A)(2) of       6,149        

section 3317.161 of the Revised Code shall not be approved for                  

state funding in one school district, including any joint          6,151        

vocational or cooperative education school district or any         6,152        

educational service center, to the extent that such unit provides  6,153        

programs in or services to another district which receives         6,154        

payment pursuant to section 3317.04 of the Revised Code.           6,155        

      (2)  Any city, local, exempted village, or cooperative       6,158        

education school district or any educational service center may    6,159        

combine partial unit eligibility for handicapped preschool         6,160        

programs pursuant to section 3317.05 of the Revised Code, and      6,161        

such combined partial units may be approved for state funding in   6,163        

one school district or service center.                             6,164        

      (B)  After units have been initially approved for any        6,166        

fiscal year under section 3317.05 of the Revised Code, no unit     6,168        

shall be subsequently transferred from a school district or        6,170        

educational service center to another city, exempted village,      6,171        

local, joint vocational, or cooperative education school district  6,172        

or educational service center or to an institution or county       6,174        

MR/DD board solely for the purpose of reducing the financial                    

obligations of the school district in a fiscal year it receives    6,175        

payment pursuant to section 3317.04 of the Revised Code.           6,176        

      Sec. 3317.06.  Moneys paid to school districts under         6,185        

division (L) of section 3317.024 of the Revised Code shall be      6,187        

used for the following independent and fully severable purposes:                

      (A)  To purchase such secular textbooks as have been         6,189        

approved by the superintendent of public instruction for use in    6,190        

public schools in the state and to loan such textbooks to pupils   6,191        

attending nonpublic schools within the district or to their        6,192        

parents and to hire clerical personnel to administer such lending  6,193        

program.  Such loans shall be based upon individual requests       6,194        

submitted by such nonpublic school pupils or parents.  Such        6,195        

                                                          136    

                                                                 
requests shall be submitted to the school district in which the    6,196        

nonpublic school is located.  Such individual requests for the     6,197        

loan of textbooks shall, for administrative convenience, be        6,198        

submitted by the nonpublic school pupil or the pupil's parent to   6,200        

the nonpublic school which shall prepare and submit collective                  

summaries of the individual requests to the school district.  As   6,201        

used in this section, "textbook" means any book or book            6,202        

substitute which a pupil uses as a text or text substitute in a    6,203        

particular class or program in the school the pupil regularly      6,204        

attends.                                                           6,205        

      (B)  To provide speech and hearing diagnostic services to    6,207        

pupils attending nonpublic schools within the district.  Such      6,208        

service shall be provided in the nonpublic school attended by the  6,209        

pupil receiving the service.                                       6,210        

      (C)  To provide physician, nursing, dental, and optometric   6,212        

services to pupils attending nonpublic schools within the          6,213        

district.  Such services shall be provided in the school attended  6,214        

by the nonpublic school pupil receiving the service.               6,215        

      (D)  To provide diagnostic psychological services to pupils  6,217        

attending nonpublic schools within the district.  Such services    6,218        

shall be provided in the school attended by the pupil receiving    6,219        

the service.                                                       6,220        

      (E)  To provide therapeutic psychological and speech and     6,222        

hearing services to pupils attending nonpublic schools within the  6,223        

district.  Such services shall be provided in the public school,   6,224        

in nonpublic schools, in public centers, or in mobile units        6,225        

located on or off of the nonpublic premises.  If such services     6,228        

are provided in the public school or in public centers,            6,229        

transportation to and from such facilities shall be provided by    6,230        

the school district in which the nonpublic school is located.      6,231        

      (F)  To provide guidance and counseling services to pupils   6,233        

attending nonpublic schools within the district.  Such services    6,234        

shall be provided in the public school, in nonpublic schools, in   6,235        

pubic PUBLIC centers, or in mobile units located on or off of the  6,237        

                                                          137    

                                                                 
nonpublic premises.  If such services are provided in the public   6,238        

school or in public centers, transportation to and from such       6,239        

facilities shall be provided by the school district in which the   6,240        

nonpublic school is located.                                                    

      (G)  To provide remedial services to pupils attending        6,242        

nonpublic schools within the district.  Such services shall be     6,243        

provided in the public school, in nonpublic schools, in public     6,244        

centers, or in mobile units located on or off of the nonpublic     6,245        

premises.  If such services are provided in the public school or   6,247        

in public centers, transportation to and from such facilities      6,248        

shall be provided by the school district in which the nonpublic    6,249        

school is located.                                                              

      (H)  To supply for use by pupils attending nonpublic         6,251        

schools within the district such standardized tests and scoring    6,252        

services as are in use in the public schools of the state;         6,253        

      (I)  To provide programs for children who attend nonpublic   6,255        

schools within the district and are handicapped children as        6,256        

defined in division (A) of section 3323.01 of the Revised Code or  6,257        

gifted children.  Such programs shall be provided in the public    6,258        

school, in nonpublic schools, in public centers, or in mobile      6,259        

units located on or off of the nonpublic premises.  If such        6,262        

programs are provided in the public school or in public centers,   6,263        

transportation to and from such facilities shall be provided by    6,264        

the school district in which the nonpublic school is located.      6,265        

      (J)  To hire clerical personnel to assist in the             6,267        

administration of programs pursuant to divisions (B), (C), (D),    6,268        

(E), (F), (G), and (I) of this section and to hire supervisory     6,269        

personnel to supervise the providing of services and textbooks     6,270        

pursuant to this section.                                          6,271        

      (K)  To purchase any secular, neutral, and nonideological    6,273        

computer software, prerecorded video laserdiscs, compact discs,    6,275        

and video cassette cartridges and mathematics or science           6,276        

equipment and materials that are in general use in the public      6,278        

schools of the state and loan such computer software, prerecorded  6,279        

                                                          138    

                                                                 
video laserdiscs, compact discs, and video cassette cartridges,    6,281        

equipment, and materials to pupils attending nonpublic schools     6,283        

within the district or to their parents, and to hire clerical      6,284        

personnel to administer the lending program.  Only computer        6,285        

software, prerecorded video laserdiscs, compact discs, and video   6,287        

cassette cartridges, equipment, and materials that are incapable   6,289        

of diversion to religious use and that are susceptible of loan to  6,290        

individual pupils and are furnished for the use of individual      6,291        

pupils shall be purchased and loaned under this division.          6,292        

      (L)  To purchase instructional equipment, including          6,294        

computer hardware, for use by pupils attending nonpublic schools   6,296        

within the district, if such usage only occurs when these pupils   6,298        

are being provided the secular remedial, diagnostic, or            6,299        

therapeutic services pursuant to division (B), (D), (E), (F),      6,301        

(G), or (I) of this section.                                                    

      (M)  To purchase mobile units to be used for the provision   6,304        

of services pursuant to divisions (E), (F), (G), and (I) of this   6,307        

section and to pay for necessary repairs and operating costs       6,308        

associated with these units.                                       6,309        

      Clerical and supervisory personnel hired pursuant to         6,311        

division (J) of this section shall perform their services in the   6,312        

public schools, in nonpublic schools, public centers, or mobile    6,313        

units where the services are provided to the nonpublic school      6,315        

pupil, except that such personnel may accompany pupils to and      6,316        

from the service sites when necessary to ensure the safety of the  6,317        

children receiving the services.                                   6,318        

      Health services provided pursuant to divisions (B), (C),     6,320        

(D), and (E) of this section may be provided under contract with   6,321        

the department of health, city or general health districts, or     6,322        

private agencies whose personnel are properly licensed by an       6,323        

appropriate state board or agency.                                 6,324        

      Transportation of pupils provided pursuant to divisions      6,326        

(E), (F), (G), and (I) of this section shall be provided by the    6,327        

school district from its general funds and not from moneys paid    6,328        

                                                          139    

                                                                 
to it under division (J)(L) of section 3317.024 of the Revised     6,329        

Code unless a special transportation request is submitted by the   6,330        

parent of the child receiving service pursuant to such divisions.  6,331        

If such an application is presented to the school district, it     6,332        

may pay for the transportation from moneys paid to it under        6,333        

division (J)(L) of section 3317.024 of the Revised Code.           6,334        

      No school district shall provide health or remedial          6,336        

services to nonpublic school pupils as authorized by this section  6,337        

unless such services are available to pupils attending the public  6,338        

schools within the district.                                       6,339        

      Materials, equipment, computer software, textbooks, and      6,341        

health and remedial services provided for the benefit of           6,342        

nonpublic school pupils pursuant to this section and the           6,343        

admission of pupils to such nonpublic schools shall be provided    6,344        

without distinction as to race, creed, color, or national origin   6,345        

of such pupils or of their teachers.                               6,346        

      No school district shall provide services for use in         6,348        

religious courses, devotional exercises, religious training, or    6,349        

any other religious activity.                                      6,350        

      As used in this section, "parent" includes a person          6,352        

standing in loco parentis to a child.                              6,353        

      Notwithstanding section 3317.01 of the Revised Code,         6,355        

payments shall be made under this section to any city, local, or   6,356        

exempted village school district within which is located one or    6,357        

more nonpublic elementary or high schools.                         6,358        

      The allocation of payments for materials, equipment,         6,360        

textbooks, health services, and remedial services to city, local,  6,361        

and exempted village school districts shall be on the basis of     6,362        

the state board of education's estimated annual average daily      6,363        

membership in nonpublic elementary and high schools located in     6,364        

the district.                                                      6,365        

      Payments made to city, local, and exempted village school    6,367        

districts under this section shall be equal to specific            6,368        

appropriations made for the purpose.  All interest earned by a     6,369        

                                                          140    

                                                                 
school district on such payments shall be used by the district     6,370        

for the same purposes and in the same manner as the payments may   6,371        

be used.                                                           6,372        

      The department of education shall adopt guidelines and       6,374        

procedures under which such programs and services shall be         6,375        

provided, under which districts shall be reimbursed for            6,376        

administrative costs incurred in providing such programs and       6,377        

services, and under which any unexpended balance of the amounts    6,378        

appropriated by the general assembly to implement this section     6,379        

may be transferred to the auxiliary services personnel             6,380        

unemployment compensation fund established pursuant to section     6,381        

4141.47 of the Revised Code.  The department shall also adopt      6,382        

guidelines and procedures limiting the purchase and loan of        6,383        

computer software, equipment, and materials under division (K) of  6,384        

this section to items that are in general use in the public        6,385        

schools of the state, that are incapable of diversion to           6,386        

religious use, and that are susceptible to individual use rather   6,387        

than classroom use.  Within thirty days after the end of each      6,388        

biennium, each board of education shall remit to the department    6,389        

all moneys paid to it under division (J)(L) of section 3317.024    6,391        

of the Revised Code and any interest earned on those moneys that                

are not required to pay expenses incurred under this section       6,392        

during the biennium for which the money was appropriated and       6,393        

during which the interest was earned.  If a board of education     6,394        

subsequently determines that the remittal of moneys leaves the     6,395        

board with insufficient money to pay all valid expenses incurred   6,396        

under this section during the biennium for which the remitted      6,397        

money was appropriated, the board may apply to the department of   6,398        

education for a refund of money, not to exceed the amount of the   6,399        

insufficiency.  If the department determines the expenses were     6,400        

lawfully incurred and would have been lawful expenditures of the   6,401        

refunded money, it shall certify its determination and the amount  6,402        

of the refund to be made to the administrator of the bureau of     6,403        

employment services who shall make a refund as provided in         6,404        

                                                          141    

                                                                 
section 4141.47 of the Revised Code.                               6,405        

      Sec. 3317.082.  As used in this section, "institution"       6,414        

means a residential facility that receives and cares for children  6,415        

maintained by the department of youth services and that operates   6,416        

a school chartered by the state board of education under section   6,417        

3301.16 of the Revised Code.                                       6,418        

      (A)  On or before the thirty-first day of each January and   6,420        

July, the superintendent of each institution that during the       6,421        

six-month period immediately preceding each January or July        6,422        

provided an elementary or secondary education for any child,       6,423        

other than a child receiving special education under section       6,424        

3323.091 of the Revised Code, shall prepare and submit to the      6,425        

department of education, a statement for each such child           6,426        

indicating the child's name, any school district responsible to    6,427        

pay tuition for the child as determined by the superintendent in   6,428        

accordance with division (C)(2) or (3) of section 3313.64 of the   6,429        

Revised Code, and the period of time during that six-month period  6,430        

that the child received an elementary or secondary education.  If  6,431        

any school district is responsible to pay tuition for any such     6,432        

child, the department of education, no later than the immediately  6,433        

succeeding last day of February or August, as applicable, shall    6,434        

calculate the amount of the tuition of the district under section  6,435        

3317.08 of the Revised Code for the period of time indicated on    6,436        

the statement and do one of the following:                         6,437        

      (1)  If the tuition amount is equal to or less than the      6,439        

amount of state basic aid funds payable to the district under      6,440        

sections 3317.022 and 3317.023 of the Revised Code, pay to the     6,441        

institution submitting the statement an amount equal to the        6,442        

tuition amount, as provided under division (R)(Q) of section       6,443        

3317.024 of the Revised Code, and deduct the tuition amount from   6,444        

the state basic aid funds payable to the district, as provided     6,445        

under division (F)(2) of section 3317.023 of the Revised Code;     6,447        

      (2)  If the tuition amount is greater than the amount of     6,449        

state basic aid funds payable to the district under sections       6,450        

                                                          142    

                                                                 
3317.022 and 3317.023 of the Revised Code, require the district    6,451        

to pay to the institution submitting the statement an amount       6,452        

equal to the tuition amount.                                       6,453        

      (B)  In the case of any disagreement about the school        6,455        

district responsible to pay tuition for a child pursuant to this   6,456        

section, the superintendent of public instruction shall make the   6,457        

determination in any such case in accordance with division (C)(2)  6,458        

or (3) of section 3313.64 of the Revised Code.                     6,459        

      Sec. 3317.10.  (A)  On or before the first day of March of   6,466        

each year, the department of human services shall certify to the   6,467        

state board of education the number of children ages five through  6,468        

seventeen residing in each school district and living in a family  6,469        

that participated in Ohio works first under Chapter 5107. of the   6,470        

Revised Code during the preceding October according to the school  6,471        

district of residence for each child.  Except as provided under    6,472        

division (B) of this section, the number of children so certified  6,473        

in any year shall be used by the department of education in        6,474        

determining the DPIA ADM for purposes of calculating the           6,475        

distribution of moneys for the ensuing fiscal year provided in     6,476        

section 3317.029 of the Revised Code.                              6,477        

      (B)  Upon the transfer of part of the territory of one       6,479        

school district to the territory of one or more other school       6,480        

districts, the department of education may adjust the number       6,481        

certified under division (A) of this section for any district      6,483        

gaining or losing territory in such a transfer in order to take                 

into account the effect of the transfer on the number of children  6,484        

ages five through seventeen who reside in the district and live    6,485        

in a family that participates in Ohio works first.  Within sixty   6,486        

days of receipt of a request for information from the department   6,488        

of education, the department of human services shall provide any   6,489        

information the department of education determines is necessary    6,490        

to make such adjustments.  The department of education may use     6,491        

the adjusted number for any district for the applicable fiscal     6,492        

year, in lieu of the number certified for the district for that    6,493        

                                                          143    

                                                                 
fiscal year under division (A) of this section, in the             6,494        

calculation of the distribution of moneys provided in section      6,495        

3317.029 of the Revised Code.                                                   

      Sec. 3317.11.  (A)  Annually, on or before a date            6,504        

designated by the state board of education, each educational       6,505        

service center governing board shall prepare a budget of           6,507        

operating expenses for the ensuing year for the service center on  6,508        

forms prepared and furnished by the state board of education and   6,509        

shall certify the budget to the state board of education,          6,510        

together with such other information as the board may require.     6,511        

Such budget shall consist of two parts.  Part (A) shall include    6,512        

the cost of the salaries, employers retirement contributions, and  6,513        

travel expenses of supervisory teachers approved by the state      6,514        

board of education.  The amount derived from the calculation for   6,515        

such units in part (A) of the governing board budget shall be the  6,516        

sum of:                                                                         

      (1)  The sum of the minimum salaries calculated, pursuant    6,518        

to section 3317.13 of the Revised Code, for each approved          6,519        

licensed employee of the governing board;                          6,520        

      (2)  An additional salary allowance proportional to the      6,522        

length of the extended term of service not to exceed three months  6,523        

for each supervisory and child study teacher whose term of         6,524        

service in any year is extended beyond the terms of service of     6,525        

regular classroom teachers;                                        6,526        

      (3)  An allowance equal to fifteen per cent of the amount    6,528        

computed under division (A)(1) of this section;                    6,529        

      (4)  An allowance for necessary travel expenses, for each    6,531        

of the personnel approved in part (A) of the budget, limited to    6,532        

two hundred twenty-three dollars and sixteen cents per month, or   6,533        

two thousand six hundred seventy-eight dollars per year per        6,534        

person employed, whichever is the lesser.  Part                    6,535        

      PART (B) shall include the cost of all other lawful          6,538        

expenditures of the governing board.  The state board of           6,539        

education shall review such budget and may approve, increase, or                

                                                          144    

                                                                 
decrease such budget.                                              6,540        

      The governing board shall be reimbursed by the state board   6,543        

of education from state funds for the cost of part (A) of the      6,544        

budget.  The governing board shall be reimbursed by the state                   

board of education, from state funds for the cost of part (B) of   6,546        

the approved budget that is in excess of six dollars and fifty     6,547        

cents times the service center ADM.  If the governing board        6,548        

provides services to city or exempted village school districts     6,549        

pursuant to section 3313.843 of the Revised Code, the governing    6,550        

board shall be reimbursed from state funds for the cost of part    6,551        

(B) of the budget that is in excess of six dollars and fifty       6,552        

cents times the sum of the service center ADM and the formula      6,554        

CLIENT ADMs of the city or exempted village districts to which     6,555        

such services are provided.  The cost of part (B) not in excess    6,556        

of six dollars and fifty cents times the number of such ADM shall  6,557        

be apportioned by the state board of education among the local     6,558        

school districts in the territory of the service center, or among  6,559        

all districts to which the governing board provides services, on   6,561        

the basis of the total number of pupils in each school district.   6,562        

      If part (B) of the budget is in excess of that approved by   6,564        

the state board of education, the excess cost shall be             6,565        

apportioned by the state board of education among the local        6,566        

school districts in the territory of the service center on the     6,568        

basis of the total number of such pupils in each such school       6,569        

district, provided that a majority of the boards of education of   6,570        

such local school districts approve such apportionment.  The       6,571        

state board of education shall initiate and supervise the          6,572        

procedure by which the local boards shall approve or disapprove    6,573        

such apportionment.                                                             

      The amounts so apportioned shall be certified to the         6,575        

treasurers of the various school districts.  In the case of each   6,576        

district such amount shall be deducted by the state board of       6,577        

education from funds allocated to the district pursuant to         6,578        

division (E) of section 3317.023 of the Revised Code.              6,579        

                                                          145    

                                                                 
      The state board of education shall certify to the director   6,581        

of budget and management for payment the total of the deductions,  6,582        

whereupon the amount shall be paid to the governing board of each  6,584        

service center, to be deposited to the credit of a separate fund,  6,586        

hereby created, to be known as the educational service center      6,587        

governing board fund.                                                           

      An educational service center may provide special education  6,590        

to students in its local districts or in client districts.  A      6,591        

service center is eligible for funding under division (J) of       6,593        

section 3317.024 of the Revised Code and eligible for state        6,594        

subsidies for the purchase of school buses under section 3317.07   6,595        

of the Revised Code.  Special education units for gifted children  6,597        

may be operated by a governing board.  Vocational education may                 

be provided by a governing board.  A governing board may conduct   6,599        

driver education for pupils enrolled in a high school for which    6,600        

the state board of education prescribes minimum standards and      6,601        

which is eligible for funding under division (I) of section        6,602        

3317.024 of the Revised Code.                                                   

      Every local school district shall be provided supervisory    6,604        

services by its governing board as approved by the state board of  6,607        

education.  A city or exempted village school district shall be    6,608        

considered to be provided supervisory services by a governing      6,609        

board if it has entered into an agreement for the governing board  6,610        

to provide any services under section 3313.843 of the Revised      6,611        

Code.  Supervisory services shall not exceed one supervisory       6,613        

teacher for the first fifty classroom teachers employed in all     6,614        

districts that are provided supervisory services calculated under  6,615        

section 3317.023 of the Revised Code and one supervisory teacher   6,616        

for every additional one hundred such classroom teachers so        6,617        

calculated.  Reimbursement for such supervisory services shall be  6,618        

a deduction by the state board of education from the payment to    6,619        

the school district pursuant to division (E) of section 3317.023   6,620        

of the Revised Code.  Deductions for all supervisory services and  6,621        

extended services for supervisory and child study shall be         6,622        

                                                          146    

                                                                 
apportioned among local school districts within the territory of   6,623        

the service center and any city or exempted village districts      6,624        

that have entered into agreements with a service center pursuant   6,625        

to section 3313.843 of the Revised Code by the state board of      6,626        

education on the basis of the total number of pupils in each       6,627        

school district, except that where such services are provided to   6,628        

districts other than local school districts within the service     6,630        

center territory and city or exempted village districts having                  

agreements with the service center, such charges shall be          6,631        

apportioned among all participating districts on the basis of the  6,633        

total number of pupils in each school district.  All deductions    6,634        

from state funding to school districts required for reimbursement  6,635        

of governing boards by division (E) of section 3317.023 of the     6,636        

Revised Code shall be made from the total of the payment computed  6,637        

FOR THE DISTRICT under sections 3317.022 and 3317.023 of the       6,639        

Revised Code THIS CHAPTER, after making any other adjustments in   6,641        

that payment required by law.                                                   

      (B)(1)  In addition to the payments made under division (A)  6,643        

of this section, except as otherwise provided in division (C) of   6,644        

this section, the department of education shall pay each           6,645        

governing board, each fiscal year, an amount equal to thirty-four  6,646        

dollars times the sum of the service center ADM and thirty-four    6,647        

dollars times the sum of the client ADMs of all its client         6,648        

districts.                                                                      

      (2)  IN ADDITION TO OTHER PAYMENTS UNDER THIS SECTION, THE   6,650        

DEPARTMENT SHALL PAY EACH EDUCATIONAL SERVICE CENTER THE AMOUNTS   6,651        

DUE TO IT FROM SCHOOL DISTRICTS PURSUANT TO CONTRACTS, COMPACTS,   6,652        

OR AGREEMENTS UNDER WHICH THE SERVICE CENTER FURNISHES SERVICES    6,653        

TO THE DISTRICTS OR THEIR STUDENTS.  IN ORDER TO RECEIVE PAYMENT   6,654        

UNDER THIS DIVISION, AN EDUCATIONAL SERVICE CENTER SHALL FURNISH   6,655        

EITHER A COPY OF THE APPLICABLE CONTRACT, COMPACT, OR AGREEMENT    6,656        

CLEARLY INDICATING THE AMOUNTS OF THE PAYMENTS, OR A WRITTEN       6,657        

STATEMENT OF THE PAYMENTS OWED SIGNED BY THE SUPERINTENDENT OR                  

TREASURER OF THE RESPONSIBLE SCHOOL DISTRICT.                      6,658        

                                                          147    

                                                                 
      THE AMOUNTS PAID TO SERVICE CENTERS UNDER DIVISION (B)(2)    6,660        

OF THIS SECTION SHALL BE DEDUCTED FROM PAYMENTS TO SCHOOL          6,661        

DISTRICTS PURSUANT TO DIVISION (K)(2) OF SECTION 3317.023 OF THE   6,663        

REVISED CODE.                                                                   

      (C)  Beginning with the fiscal year that starts July 1,      6,665        

1997, in lieu of the payment specified under division (B) of this  6,667        

section, each multicounty service center shall receive a payment   6,668        

each fiscal year equal to one per cent times the formula amount    6,669        

times the sum of the service center ADM and the client ADMs of     6,670        

all its client districts.                                                       

      (D)  Each city, exempted village, local, joint vocational,   6,672        

or cooperative education school district shall pay to the          6,674        

governing board of an educational service center any amounts                    

agreed to for each child enrolled in the district who receives     6,675        

special education and related services or vocational education     6,676        

from the educational service center.                                            

      (E)  As used in this section:                                6,678        

      (1)  "Service center ADM" means the total of each of the     6,681        

following for all local school districts within the limits of an   6,682        

educational service center's territory:                                         

      (a)  The formula ADM;                                        6,684        

      (b)  One-half of the THE kindergarten average daily          6,686        

membership included in the formula ADM;                            6,687        

      (c)  Three-quarters of the number of students reported       6,689        

under division (B)(4) of section 3317.03 of the Revised Code;      6,690        

      (d)  The average daily membership of handicapped preschool   6,693        

children reported under division (B)(2) of section 3317.03 of the  6,694        

Revised Code;                                                                   

      (e)  The number of preschool students certified under        6,696        

division (B) of section 3317.032 of the Revised Code.              6,697        

      (2)  "Client ADM" means the total of each number described   6,700        

under divisions (E)(1)(a) to (e) of this section for a client      6,701        

district.                                                                       

      (3)  "Client district" means a city or exempted village      6,703        

                                                          148    

                                                                 
school district that has entered into an agreement to receive      6,704        

services from a service center pursuant to section 3313.843 of     6,705        

the Revised Code.                                                               

      (4)  "Multicounty service center" means a service center     6,707        

that includes territory that formerly was included in the          6,708        

territory of at least three former service centers or county       6,709        

school districts, which former centers or districts engaged in     6,710        

one or more mergers pursuant to section 3311.053 of the Revised    6,711        

Code to form the present center.                                                

      Sec. 3317.161.  As used in this section, "institution"       6,720        

means an institution operated by a department specified in         6,721        

section 3323.091 of the Revised Code.                              6,722        

      (A)(1)  The department of education shall pay each school    6,725        

district, educational service center, institution eligible for     6,726        

payment under section 3323.091 of the Revised Code, or county      6,727        

mr/dd MR/DD board an amount for the total of all classroom units   6,728        

for handicapped preschool children approved under division (B) of  6,729        

section 3317.05 of the Revised Code.  For each unit, the amount                 

shall be the sum of the minimum salary for the teacher of the      6,730        

unit, calculated on the basis of the teacher's training level and  6,732        

years of experience pursuant to section 3317.13 of the Revised     6,733        

Code, plus fifteen per cent of that minimum salary amount, and     6,734        

eight thousand twenty-three dollars.                                            

      (2)  The department shall pay each school district,          6,736        

educational service center, institution eligible for payment       6,737        

under section 3323.091 of the Revised Code, or county MR/DD board  6,738        

an amount for the total of all related services units for          6,739        

handicapped preschool children approved under division (C) of      6,740        

section 3317.05 of the Revised Code.  For each such unit, the      6,741        

amount shall be the sum of the minimum salary for the teacher of   6,742        

the unit calculated on the basis of the teacher's training level   6,743        

and years of experience pursuant to section 3317.13 of the         6,744        

Revised Code, fifteen per cent of that minimum salary amount, and  6,745        

two thousand one hundred thirty-two dollars.                                    

                                                          149    

                                                                 
      (B)  If a school district or educational service center has  6,748        

had additional handicapped preschool units approved for the year   6,749        

under division (F)(2) of section 3317.03 of the Revised Code, or   6,750        

if a county MR/DD board has had additional handicapped preschool   6,751        

units approved under division (G)(3) of section 3317.03 of the     6,752        

Revised Code, the district, educational service center, or board   6,753        

shall receive an additional amount during the last half of the     6,754        

fiscal year.  For each district, center, or board, the additional  6,755        

amount for each unit shall equal fifty per cent of the amount      6,756        

AMOUNTS computed for the unit in the manner prescribed by                       

division (A) of this section AND DIVISION (C) OF SECTION 3317.162  6,757        

OF THE REVISED CODE.                                               6,758        

      (C)(1)  The department shall pay each institution eligible   6,760        

for payment under section 3323.091 of the Revised Code or county   6,762        

MR/DD board an amount for the total of all special education       6,763        

units approved under division (D)(1) of section 3317.05 of the     6,764        

Revised Code.  The amount for each unit shall be the sum of the    6,766        

minimum salary for the teacher of the unit, calculated on the      6,767        

basis of the teacher's training level and years of experience      6,768        

pursuant to section 3317.13 of the Revised Code, plus fifteen per  6,769        

cent of that minimum salary amount, and eight thousand             6,770        

twenty-three dollars.                                              6,771        

      (2)  The department shall pay each institution eligible for  6,773        

payment under section 3323.091 of the Revised Code or county       6,774        

MR/DD board an amount for the total of all related services units  6,775        

approved under division (D)(2) of section 3317.05 of the Revised   6,776        

Code.  The amount for each unit shall be the sum of the minimum    6,778        

salary for the teacher of the unit, calculated on the basis of     6,779        

the teacher's training level and years of experience pursuant to   6,780        

section 3317.13 of the Revised Code, plus fifteen per cent of      6,781        

that minimum salary amount, and two thousand one hundred           6,782        

thirty-two dollars.                                                6,783        

      (3)  If a county MR/DD board has had additional handicapped  6,785        

preschool units FOR HANDICAPPED CHILDREN OTHER THAN HANDICAPPED    6,786        

                                                          150    

                                                                 
PRESCHOOL CHILDREN approved under division (G)(3) of section       6,788        

3317.03 of the Revised Code, the board shall receive an            6,789        

additional amount during the last half of the fiscal year.  For    6,790        

each board, the additional amount for each unit shall equal fifty  6,791        

per cent of the amount computed for the unit in the manner                      

prescribed by division (C)(1) of this section AND DIVISION (C) OF  6,792        

SECTION 3317.162 OF THE REVISED CODE.                              6,793        

      (D)  The department shall pay each institution approved for  6,796        

vocational education units under division (A) of section 3317.05   6,797        

of the Revised Code an amount for the total of all the units       6,799        

approved under that division.  The amount for each unit shall be   6,800        

the sum of the minimum salary for the teacher of the unit,         6,801        

calculated on the basis of the teacher's training level and years  6,802        

of experience pursuant to section 3317.13 of the Revised Code,     6,803        

plus fifteen per cent of that minimum salary amount, and nine      6,804        

thousand five hundred ten dollars.                                 6,805        

      Sec. 50.11 3317.162.  Supplemental Unit Allowance            6,808        

      (A)  As used under IN this heading SECTION:                  6,810        

      (1)  "State share PERCENTAGE" has the same meaning as in     6,812        

division (B) of section 3317.022 of the Revised Code.              6,813        

      (2)  "Dollar amount" means the amount shown in the           6,815        

following table for the corresponding type of unit and the         6,816        

appropriate fiscal year:                                           6,817        

                                            DOLLAR AMOUNT          6,819        

               TYPE OF UNIT                  FY 1999               6,820        

      Division (B) of R.C. SECTION                                 6,821        

         3317.05 OF THE REVISED CODE          $8,334               6,822        

      Division (C) of R.C. 3317.05                                 6,823        

         THAT SECTION                         $3,234                            

      Division (F) of R.C. 3317.05                                 6,824        

         THAT SECTION                         $3,550                            

      (3)  "Average unit amount" means the amount shown in the     6,827        

following table for the corresponding type of unit and the         6,828        

appropriate fiscal year:                                           6,829        

                                                          151    

                                                                 
                                            AVERAGE UNIT AMOUNT    6,831        

                TYPE OF UNIT                    FY 1999            6,832        

      Division (B) of R.C. SECTION                                 6,833        

         3317.05 OF THE REVISED CODE            $7,799             6,834        

      Division (C) of R.C. 3317.05                                 6,835        

         THAT SECTION                           $2,966                          

      Division (F) of R.C. 3317.05                                 6,836        

         THAT SECTION                           $3,251                          

      (B)  In the case of each unit described in division (B),     6,839        

(C), or (F) of section 3317.05 of the Revised Code and allocated   6,841        

to a city, local, or exempted village school district, the         6,842        

Department DEPARTMENT of Education EDUCATION, in addition to the   6,843        

amounts specified in such divisions DIVISION (P)(1) OF SECTION     6,845        

3317.024 AND SECTIONS 3317.16, 3317.161, AND 3317.19 OF THE                     

REVISED CODE, shall pay a supplemental unit allowance equal to     6,846        

the sum of the following amounts:                                  6,847        

      (1)  An amount equal to 50% of the average unit amount for   6,849        

the unit;                                                                       

      (2)  An amount equal to the percentage of the dollar amount  6,851        

for the unit that equals the district's state share PERCENTAGE.    6,852        

      If, prior to the fifteenth day of May of a fiscal year, a    6,854        

school district's aid computed under section 3317.022 of the       6,855        

Revised Code is recomputed pursuant to section 3317.027 or         6,856        

3317.028 of the Revised Code, the department shall also recompute  6,857        

the district's entitlement to payment under this section           6,858        

utilizing a new state share PERCENTAGE.  Such new state share      6,859        

PERCENTAGE shall be determined using the district's recomputed     6,860        

basic aid amount pursuant to section 3317.027 or 3317.028 of the   6,861        

Revised Code.  During the last six months of the fiscal year, the  6,862        

department shall pay the district a sum equal to one-half of the   6,863        

recomputed payment in lieu of one-half the payment otherwise                    

calculated under this section.                                     6,864        

      (C)(1)  In the case of each unit allocated to a joint        6,866        

vocational school district or institution pursuant to division     6,867        

                                                          152    

                                                                 
(A) of section 3317.05 of the Revised Code, the Department         6,869        

DEPARTMENT, in addition to the amount specified in section         6,870        

3317.16 OR 3317.161 of the Revised Code, shall pay a supplemental  6,871        

unit allowance of $7,227 in fiscal year 1999.                      6,872        

      (2)  In the case of each unit described in division (B) or   6,874        

(D)(1) of section 3317.05 of the Revised Code that is allocated    6,876        

to any entity other than a city, exempted village, or local        6,877        

school district, the Department DEPARTMENT, in addition to the     6,878        

amount specified in section 3317.161 of the Revised Code, shall                 

pay a supplemental unit allowance of $7,799 in fiscal year 1999.   6,879        

      (3)  In the case of each unit described in division (C) or   6,882        

(D)(2) of section 3317.05 of the Revised Code and allocated to     6,883        

any entity other than a city, exempted village, or local school    6,884        

district, the Department DEPARTMENT, in addition to the amounts    6,885        

specified in section 3317.161 of the Revised Code, shall pay a                  

supplemental unit allowance of $2,966 in fiscal year 1999.         6,886        

      (4)  In the case of each unit described in division (F) of   6,889        

section 3317.05 of the Revised Code and allocated to any entity    6,890        

other than a city, exempted village, or local school district,                  

the Department DEPARTMENT, in addition to the amounts specified    6,891        

in section 3317.161 of the Revised Code, shall pay a supplemental  6,892        

unit allowance of $3,251 in fiscal year 1999.                      6,893        

      Sec. 3317.19.  (A)  As used in this section, "total unit     6,902        

allowance" means an amount equal to the sum of the following:      6,903        

      (1)  The total of the salary allowances for the teachers     6,905        

employed in the cooperative education school district for all      6,906        

units approved under division (B) or (C) of section 3317.05 of     6,907        

the Revised Code.  The salary allowance for each unit shall equal  6,908        

the minimum salary for the teacher of the unit calculated on the   6,909        

basis of the teacher's training level and years of experience      6,910        

pursuant to section 3317.13 of the Revised Code.                   6,911        

      (2)  Fifteen per cent of the total computed under division   6,914        

(A)(1) of this section;                                                         

      (3)  The total of the unit operating allowances for all      6,916        

                                                          153    

                                                                 
approved units.  The amount of each allowance shall equal one of   6,918        

the following:                                                                  

      (a)  Eight thousand twenty-three dollars times the number    6,920        

of preschool handicapped units or fraction thereof approved for    6,921        

the year under division (B) of section 3317.05 of the Revised      6,922        

Code;                                                              6,923        

      (b)  Two thousand one hundred thirty-two dollars times the   6,925        

number of units or fraction thereof approved for the year under    6,926        

division (C) of section 3317.05 of the Revised Code.               6,927        

      (B)  The state board of education shall compute and          6,929        

distribute to each cooperative education school district for each  6,930        

fiscal year an amount equal to the sum of the following:           6,931        

      (1)  An amount equal to the total of the amounts credited    6,933        

to the cooperative education school district pursuant to division  6,934        

(K) of section 3317.023 of the Revised Code;                       6,935        

      (2)  The total unit allowance;                               6,937        

      (3)  An amount for driver education pursuant to division     6,939        

(H)(I) of section 3317.024 of the Revised Code;                    6,940        

      (4)  An amount for assisting in providing free lunches to    6,942        

needy children and an amount for assisting needy school districts  6,943        

in purchasing necessary equipment for food preparation pursuant    6,944        

to division (K) of section 3317.024 of the Revised Code.           6,945        

      (C)  If a cooperative education school district has had      6,948        

additional special education units approved for the year under     6,949        

division (F)(2) of section 3317.03 of the Revised Code, the        6,950        

district shall receive an additional amount during the last half   6,951        

of the fiscal year.  For each unit, the additional amount shall    6,952        

equal fifty per cent of the amount computed under division (A) of  6,954        

this section for a unit approved under division (B) of section     6,955        

3317.05 of the Revised Code.                                                    

      Sec. 3318.06.  After receipt of the conditional approval of  6,964        

the Ohio school facilities commission, the school district board   6,966        

by a majority of all of its members shall, if it desires to        6,967        

proceed with the project, declare all of the following by          6,968        

                                                          154    

                                                                 
resolution:                                                                     

      (A)  That with a net bonded indebtedness of within five      6,970        

thousand dollars of the required level of indebtedness or by       6,971        

issuing bonds in an amount equal to the required percentage of     6,972        

the project costs, the district is unable to provide adequate      6,973        

classroom facilities without assistance from the state;            6,974        

      (B)  That to qualify for such state assistance it is         6,976        

necessary to levy a tax outside the ten-mill limitation the        6,977        

proceeds of which shall be used to pay the cost of maintaining     6,979        

the classroom facilities included in the project, except that in                

any year the district's adjusted valuation per pupil is greater    6,980        

than the state-wide median adjusted valuation per pupil one-half   6,981        

of the proceeds of the tax shall be used for such maintenance and  6,982        

one-half of such proceeds shall be used to pay the cost of the     6,983        

purchase of the classroom facilities from the state;               6,984        

      (C)  That the question of such tax levy shall be submitted   6,986        

to the electors of the school district at the next general or      6,987        

primary election, if there be a general or primary election not    6,988        

less than seventy-five and not more than ninety-five days after    6,989        

the day of the adoption of such resolution or, if not, at a        6,990        

special election to be held at a time specified in the resolution  6,991        

which shall be not less than seventy-five days after the day of    6,992        

the adoption of the resolution and which shall be in accordance    6,993        

with the requirements of section 3501.01 of the Revised Code.      6,994        

      Such resolution shall also state, if such be the case, that  6,996        

the question of issuing bonds of the board shall be combined in a  6,997        

single proposal with the question of such tax levy.  More than     6,998        

one election under this section may be held in any one calendar    6,999        

year.  Such resolution shall specify both of the following:        7,000        

      (1)  That the rate which it is necessary to levy shall be    7,002        

at the rate of one-half mill for each one dollar of valuation,     7,003        

and that such tax shall be levied until the purchase price is      7,005        

paid but in no case longer than twenty-three years;                7,006        

      (2)  That the proceeds of the tax shall be used to pay the   7,008        

                                                          155    

                                                                 
cost of maintaining the classroom facilities included in the       7,009        

project, except in any year the district's adjusted valuation per  7,010        

pupil is greater than the statewide median adjusted valuation per  7,011        

pupil one-half of the proceeds of the tax shall be used for such   7,012        

maintenance and one-half of the proceeds of the tax shall be used  7,013        

to pay the cost of the purchase of the classroom facilities from                

the state under sections 3318.01 to 3318.20 of the Revised Code.   7,014        

      A copy of such resolution shall after its passage and not    7,016        

less than seventy-five days prior to the date set therein for the  7,017        

election be certified to the county board of elections.            7,018        

      If the question of issuing bonds of the board is to be       7,020        

combined with the question of levying the tax, the THE resolution  7,021        

of the school district board, in addition to meeting other         7,023        

applicable requirements of section 133.18 of the Revised Code,     7,024        

shall state that the amount of bonds to be issued will be either   7,025        

whatever amount may be necessary to raise the net bonded           7,026        

indebtedness of the school district to within five thousand        7,027        

dollars of the required level of indebtedness calculated for the   7,028        

year preceding the year in which such resolution is adopted or an  7,029        

amount equal to the required percentage of the basic project       7,030        

costs, whichever is greater and state that the maximum maturity    7,031        

of the bonds which, notwithstanding section 133.20 of the Revised  7,032        

Code, may be any number of years not exceeding twenty-three as     7,033        

determined by the board.  In estimating the amount of bonds to be  7,034        

issued, the board shall take into consideration the amount of      7,035        

moneys then in the bond retirement fund and the amount of moneys   7,036        

to be collected for and disbursed from the bond retirement fund    7,037        

during the remainder of the year in which the resolution of        7,038        

necessity is adopted.                                                           

      Notice of the election shall include the fact that the tax   7,040        

levy shall be at the rate of one-half mill for each one dollar of  7,041        

valuation, that the levy shall be made until the purchase price    7,043        

is paid but in no case longer than twenty-three years, and that    7,044        

the proceeds of the tax shall be used to pay the cost of           7,045        

                                                          156    

                                                                 
maintaining the classroom facilities included in the project,      7,046        

except in any year the district's adjusted valuation per pupil is  7,047        

greater than the statewide median adjusted valuation per pupil     7,048        

one-half of the proceeds of the tax shall be used for such         7,049        

maintenance and one-half of the proceeds of the tax shall be used  7,050        

to pay the cost of the purchase of the classroom facilities from                

the state under sections 3318.01 to 3318.20 of the Revised Code.   7,051        

      The form of the ballot to be used at such election shall     7,053        

be:                                                                7,054        

      "A majority affirmative vote is necessary for passage.       7,056        

      Shall bonds be issued by the Board of Education of the       7,058        

............ (here insert name of school district) for the         7,059        

purpose of ............ (here insert purpose of bond issue) in     7,060        

either an amount sufficient to raise the net indebtedness of the   7,061        

school district to within five thousand dollars of ............    7,062        

(here insert five, six, or seven per cent depending on the         7,063        

district's required level of indebtedness) of the total value of   7,064        

all property in the school district as listed and assessed for     7,065        

taxation on the tax duplicate for the year ............ (here      7,066        

insert the year preceding the year in which the resolution         7,067        

declaring the necessity of the election was adopted) or an amount  7,069        

equal to ............ (here insert the required percentage of the  7,070        

basic project costs), whichever is greater, and a levy of taxes    7,071        

be made outside of the ten-mill limitation for a maximum period    7,072        

of ............ (here insert longest maturity) years to pay the    7,073        

principal and interest of such bonds, the amount of such bonds     7,074        

being estimated to be ............ (here insert estimated amount   7,075        

of bond issue) for which the levy of taxes is estimated by the     7,076        

county auditor to average ............ (here insert number of      7,077        

mills) mills for each one dollar of valuation, which amounts to    7,078        

............ (here insert rate expressed in dollars and cents)     7,079        

for each one hundred dollars of valuation?"                        7,080        

                               and                                 7,082        

      "Shall an additional levy of taxes be made for the benefit   7,084        

                                                          157    

                                                                 
of the ............ (name of school district), the proceeds of     7,085        

which shall be used to pay the cost of maintaining the classroom   7,087        

facilities included in the project, except that in any year the    7,088        

district's adjusted valuation per pupil is greater than the                     

state-wide median adjusted valuation per pupil one-half of the     7,089        

proceeds of the tax shall be used for such maintenance and         7,090        

one-half of such proceeds shall be used to pay the cost of the     7,091        

purchase of classroom facilities from the state, at the rate of    7,092        

one-half mill for each one dollar of valuation until the purchase  7,094        

price is paid but in no case longer than twenty-three years?       7,095        

         _______________________________________________           7,097        

                 FOR THE BOND ISSUE AND TAX LEVY                   7,098        

         _______________________________________________           7,099        

                 AGAINST THE BOND ISSUE AND TAX LEVY               7,100        

         _______________________________________________   "       7,101        

      Where it is not necessary to include the question of         7,104        

issuing bonds of the school district board with the question of    7,105        

levying the tax, the first paragraph of the foregoing ballot form  7,106        

shall be omitted and the question to be voted on shall be "For     7,107        

the Tax Levy" and "Against the Tax Levy."                          7,108        

      (D)  If it is necessary for the school district to acquire   7,110        

a site for the classroom facilities to be acquired pursuant to     7,111        

sections 3318.01 to 3318.20 of the Revised Code, the district      7,112        

board may propose either to issue bonds of the board or to levy a  7,113        

tax to pay for the acquisition of such site, and may combine the   7,114        

question of doing so with the questions specified in division (C)               

of this section.  Bonds issued under this division for the         7,115        

purpose of acquiring a site are a general obligation of the        7,116        

school district and are Chapter 133. securities.                   7,117        

      The form of that portion of the ballot to include the        7,119        

question of either issuing bonds or levying a tax for site         7,120        

acquisition purposes shall be one of the following:                7,121        

      (1)  "Shall bonds be issued by the board of education of     7,123        

the ......... (name of the school district) for the purpose of     7,124        

                                                          158    

                                                                 
.......... (purpose of the bond issue, which shall be for the      7,125        

purpose of acquiring a site for classroom facilities) in the       7,126        

principal amount of ........ (principal amount of the bond                      

issue), to be repaid annually over a maximum period of .........   7,127        

(maximum number of years over which the principal of the bonds     7,128        

may be paid) years, and an annual levy of property taxes be made   7,129        

outside the ten-mill limitation, estimated by the county auditor   7,130        

to average over the repayment period of the bond issue .......     7,131        

(number of mills) mills for each one dollar of tax valuation,      7,132        

which amount to ....... (rate expressed in dollars and cents) for               

each one hundred dollars of valuation?"                            7,133        

      (2)  "Shall an additional levy of taxes be made for the      7,135        

benefit of the ......... (name of the school district) .........   7,136        

for the purpose ......... (purpose of the levy, which shall be     7,137        

for the purpose of acquiring a site for classroom facilities) in   7,138        

the sum of ......... (annual amount the levy is to produce) and a  7,139        

levy of taxes to be made outside of the ten-mill limitation        7,140        

estimated by the county auditor to average ........ (number of     7,141        

mills) mills for each one hundred dollars of valuation, for a                   

period of ......... (number of years the millage is to be          7,142        

imposed) years?"                                                                

      Where it is necessary to combine the question of issuing     7,144        

bonds of the school district and levying a tax as described in     7,145        

division (C) of this section with the question of issuing bonds    7,146        

of the school district for acquisition of a site, the question     7,147        

specified in division (C) of this section to be voted on shall be  7,148        

"For the Bond Issues and the Tax Levy" and "Against the Bond                    

Issues and the Tax Levy."  In the event it is not necessary to     7,149        

include the question of issuing bonds as described in division     7,151        

(C) of this section, the question specified in that division to    7,152        

be voted on shall be "For the Bond Issue and the Tax Levy" and     7,153        

"Against the Bond Issue and the Tax Levy."                                      

      Where it is necessary to combine the question of issuing     7,155        

bonds of the school district and levying a tax as described in     7,156        

                                                          159    

                                                                 
division (C) of this section with the question of levying a tax    7,157        

for the acquisition of a site, the question specified in division  7,158        

(C) of this section to be voted on shall be "For the Bond Issue    7,159        

and the Tax Levies" and "Against the Bond Issue and the Tax                     

Levies."  In the event it is not necessary to include the          7,160        

question of issuing bonds as described in division (C) of this     7,162        

section, the question specified in that division to be voted on    7,163        

shall be "For the Tax Levies" and "Against the Tax Levies."        7,164        

      If a majority of those voting upon a proposition hereunder   7,166        

which includes the question of issuing bonds vote in favor         7,167        

thereof, and if the agreement provided for by section 3318.08 of   7,168        

the Revised Code has been entered into, the school district board  7,169        

may proceed under Chapter 133. of the Revised Code, with the       7,170        

issuance of bonds or bond anticipation notes in accordance with    7,171        

the terms of the agreement.                                        7,172        

      Sec. 3318.08.  If the requisite favorable vote on the        7,181        

election is obtained, the Ohio school facilities commission, upon  7,183        

certification of the results of the election to it, shall enter    7,184        

into a written agreement with the school district board for the    7,185        

construction and sale of the project, which agreement shall        7,186        

include, but need not be limited to, the following provisions:     7,187        

      (A)  The sale and issuance of bonds or notes in              7,189        

anticipation thereof, as soon as practicable after the execution   7,190        

of the agreement, in either an amount which will raise the net     7,191        

bonded indebtedness of the school district, as of the date of the  7,192        

resolution authorizing the issuance of such bonds or notes, to     7,193        

within five thousand dollars of the required level of              7,194        

indebtedness calculated for the year preceding the year in which   7,195        

the resolution declaring the necessity of the election was         7,197        

adopted or an amount equal to the required percentage of the       7,198        

basic project costs, whichever is greater; provided, that if at    7,199        

that time the county treasurer of each county in which the school  7,200        

district is located has not commenced the collection of taxes on   7,201        

the general duplicate of real and public utility property for      7,202        

                                                          160    

                                                                 
such year, the school district board shall authorize the issuance  7,203        

of a first installment of bond anticipation notes in an amount     7,204        

specified by the agreement, which amount shall not exceed an       7,205        

amount necessary to raise the net bonded indebtedness of the       7,206        

school district as to the date of such authorizing resolution to   7,207        

within five thousand dollars of the required level of              7,208        

indebtedness for the preceding year.  In the event that a first    7,209        

installment of bond anticipation notes is issued, the school       7,210        

district board shall, as soon as practicable after the county      7,211        

treasurer of each county in which the school district is located   7,212        

has commenced the collection of taxes on the general duplicate of  7,213        

real and public utility property for the year in which the         7,214        

resolution declaring the necessity of the election was adopted,    7,215        

authorize the issuance of a second and final installment of bond   7,216        

anticipation notes or a first and final issue of bonds.  The       7,217        

combined value of the first and second installment of bond         7,218        

anticipation notes or the value of the first and final issue of    7,219        

bonds shall be equal to either an amount which will raise the net  7,220        

indebtedness of the school district as of the date of such         7,221        

authorizing resolution to within five thousand dollars of the      7,222        

required level of indebtedness, or an amount equal to the          7,223        

required percentage of the project costs, whichever is greater.    7,224        

The proceeds of any such bonds shall be used first to retire any   7,225        

bond anticipation notes.  Otherwise, the proceeds of such bonds    7,226        

and of any bond anticipation notes, except the premium and         7,227        

accrued interest thereon, shall be deposited in the school                      

district's project construction fund.  In determining the amount   7,228        

of net indebtedness for the purpose of fixing the amount of an     7,229        

issue of either bonds or bond anticipation notes, gross            7,230        

indebtedness shall be reduced by moneys in the bond retirement     7,231        

fund only to the extent of the moneys therein on the first day of  7,232        

the year preceding the year in which the resolution authorizing    7,233        

such bonds or notes is adopted.  Should there be a decrease in     7,235        

the tax valuation of the school district so that the amount of     7,236        

                                                          161    

                                                                 
indebtedness which can be incurred on the tax duplicates for the   7,237        

year in which the resolution declaring the necessity of the        7,238        

election was adopted is less than the amount of the first          7,239        

installment of bond anticipation notes, there shall be paid from   7,240        

the school district's project construction fund to the school      7,241        

district's bond retirement fund to be applied against such notes   7,243        

an amount sufficient to cause the net indebtedness of the school   7,244        

district, as of the first day of the year following the year in    7,245        

which the resolution declaring the necessity of the election was   7,246        

adopted, to be within five thousand dollars of the required level  7,247        

of indebtedness for the year in which that resolution was          7,248        

adopted.  The maximum amount of indebtedness to be incurred by     7,249        

any school district board as its share of the cost of the project  7,250        

is either an amount which will cause its net indebtedness, as of   7,251        

the first day of the year following the year in which the          7,252        

resolution declaring the necessity of the bond issue was adopted,  7,253        

to be within five thousand dollars of the required level of        7,254        

indebtedness calculated for the year preceding the year in which   7,255        

that resolution was adopted or an amount equal to the required     7,257        

percentage of the basic project costs, whichever is greater.  All  7,258        

bonds and bond anticipation notes shall be issued in accordance    7,259        

with Chapter 133. of the Revised Code, and notes may be renewed    7,260        

as provided in section 133.22 of the Revised Code.                 7,261        

      (B)  The transfer of such funds of the school district       7,263        

board available for the project, together with the proceeds of     7,264        

the sale of the bonds or notes, except premium, accrued interest,  7,265        

and interest included in the amount of the issue, to the school    7,266        

district's project construction fund;                              7,267        

      (C)  The levy of the tax authorized at the election for the  7,269        

payment of maintenance costs or the cost of purchasing the         7,271        

classroom facilities;                                                           

      (D)  Ownership of the project during the period of           7,273        

construction, which shall be divided between the commission and    7,275        

the school district board in proportion to their respective        7,276        

                                                          162    

                                                                 
contributions to the school district's project construction fund;  7,278        

      (E)  The transfer of the state's interest in the project to  7,280        

the school district upon completion of the project;                7,281        

      (F)  The insurance of the project by the school district     7,283        

from the time there is an insurable interest therein and so long   7,284        

as any part of the purchase price remains unpaid, in such amounts  7,285        

and against such risks as the commission shall require; provided,  7,288        

that the cost of any required insurance until the project is       7,289        

completed shall be a part of the basic project cost;                            

      (G)  The certification by the director of budget and         7,291        

management that funds are available and have been set aside to     7,292        

meet the state's share of the basic project cost as approved by    7,294        

the controlling board pursuant to section 3318.04 of the Revised   7,295        

Code;                                                                           

      (H)  Authorization of the school district board to           7,297        

advertise for and receive construction bids for the project, for   7,298        

and on behalf of the commission, and to award contracts in the     7,300        

name of the state subject to approval by the commission;           7,301        

      (I)  Provisions for the disbursement of moneys from the      7,303        

school district's project account upon issuance by the commission  7,305        

or the commission's designated representative of vouchers for      7,306        

work done to be certified to the commission by the treasurer of    7,309        

the school district board;                                         7,310        

      (J)  Disposal of any balance left in the school district's   7,312        

project construction fund upon completion of the project;          7,314        

      (K)  Prohibition against alienation of any interest in the   7,316        

project by the school district board or its successor in interest  7,317        

without the consent of the commission so long as any part of the   7,319        

purchase price of the project remains unpaid, but in no case       7,320        

longer than twenty-three years;                                    7,321        

      (L)  Limitations upon use of the project or any part of it   7,323        

so long as any part of the purchase price of the project remains   7,324        

unpaid, but in no case longer than twenty-three years;             7,325        

      (M)  Suspension of the power to issue bonds or notes by the  7,327        

                                                          163    

                                                                 
school district board for permanent improvements without the       7,328        

prior consent of the commission for so long as any part of the     7,330        

purchase price of the project remains unpaid, but in no case       7,331        

longer than twenty-three years;                                    7,332        

      (N)  Provision for vesting absolute interest in the project  7,334        

in the school district board when the purchase price has been      7,335        

paid or at the expiration of the period of twenty-three years;     7,336        

      (O)(N)  Provision for deposit of an executed copy of the     7,338        

agreement in the office of the commission and the office of the    7,340        

county recorder of the county or counties in which the project is  7,341        

situated;                                                          7,342        

      (P)(O)  Provision for termination of the contract and        7,344        

release of the funds encumbered at the time of the conditional     7,345        

approval, if the proceeds of the sale of the bonds of the school   7,346        

district board are not paid into the school district's project     7,347        

construction fund and if bids for the construction of the project  7,350        

have not been taken within such period after the execution of the  7,351        

agreement as may be fixed by the commission;                       7,352        

      (Q)(P)  Provision for the school district to maintain the    7,354        

project in accordance with a plan approved by the commission;      7,356        

      (R)(Q)  Provision that all state funds reserved and          7,359        

encumbered to pay the state share of the cost of the project       7,360        

pursuant to section 3318.03 of the Revised Code be spent on the    7,361        

construction or acquisition of the project prior to the            7,362        

expenditure of any funds provided by the school district to pay    7,363        

for its share of the project cost, unless the school district      7,364        

certifies to the commission that expenditure by the school         7,365        

district is necessary to maintain the tax-exempt status of notes   7,366        

or bonds issued by the school district to pay for its share of     7,367        

the project cost in which case, the school district may commit to  7,368        

spend, or spend, a portion of the funds it provides.               7,369        

      Sec. 3318.10.  When such working drawings, specifications,   7,378        

and estimates of cost have been approved by the school district    7,379        

board and the Ohio school facilities commission, the treasurer of  7,381        

                                                          164    

                                                                 
the school district board shall advertise for construction bids    7,382        

for the project once a week for four THREE consecutive weeks in a  7,383        

newspaper published in and of general circulation in the county    7,384        

in which the project is located.  Such notices shall state that    7,385        

plans and specifications for the project are on file in the        7,386        

office of the commission and such other place as may be            7,388        

designated in such notice, and the time and place when and where   7,389        

bids therefor will be received.                                                 

      The form of proposal to be submitted by bidders shall be     7,391        

supplied by the commission.  Bidders may be permitted to bid upon  7,394        

all the branches of work and materials to be furnished and                      

supplied, upon any branch thereof, or upon all or any thereof.     7,395        

      A proposal shall be invalid and not considered unless it     7,397        

meets the requirements of section 153.54 of the Revised Code.      7,398        

      When the construction bids for all branches of work and      7,400        

materials have been tabulated, the commission shall cause to be    7,401        

prepared a revised estimate of the basic project cost based upon   7,404        

the lowest responsible bids received.  If such revised estimate    7,405        

exceeds the estimated basic project cost as approved by the        7,406        

controlling board pursuant to section 3318.04 of the Revised       7,407        

Code, no contracts may be entered into pursuant to this section    7,408        

unless such revised estimate is approved by the commission and by  7,409        

the controlling board referred to in section 3318.04 of the        7,410        

Revised Code.  When such revised estimate has been prepared, and   7,411        

after such approvals are given, if necessary, and if the school    7,412        

district board has caused to be transferred to the project         7,413        

construction fund the proceeds from the sale of the first or       7,415        

first and final installment of its bonds or bond anticipation      7,416        

notes pursuant to the provision of written agreement required by   7,417        

division (B) of section 3318.08 of the Revised Code, and when the  7,418        

director of budget and management has certified that there is a    7,419        

balance in the appropriation, not otherwise obligated to pay       7,420        

precedent obligations, pursuant to which the state's share of      7,421        

such revised estimate is required to be paid, the contract for                  

                                                          165    

                                                                 
all branches of work and materials to be furnished and supplied,   7,422        

or for any branch thereof as determined by the school district     7,423        

board, shall be awarded by the school district board to the        7,424        

lowest responsible bidder subject to the approval of the           7,425        

commission.  Such award shall be made within thirty SIXTY days     7,428        

after the date on which the bids are opened, and the successful    7,430        

bidder shall enter into a contract within ten days after the       7,431        

successful bidder is notified of the award of the contract.        7,432        

      Subject to the approval of the commission, the school        7,434        

district board may reject all bids and readvertise.  Any contract  7,437        

made under this section shall be made in the name of the state     7,438        

and executed on its behalf by the president and treasurer of the   7,439        

school district board.                                                          

      The provisions of sections 153.50 to 153.99 of the Revised   7,441        

Code, which are applicable to construction contracts of boards of  7,442        

education and which permit bids to be made for two or more trades  7,443        

or kinds of work, shall apply to construction contracts for the    7,444        

project to the exclusion of sections 153.01 to 153.20 of the       7,445        

Revised Code applicable to state construction contracts.           7,446        

      The remedies afforded to any subcontractor, materials        7,448        

supplier, laborer, mechanic, or persons furnishing material or     7,450        

machinery for the project under sections 1311.26 to 1311.32 of     7,451        

the Revised Code, shall apply to contracts entered into under      7,452        

this section and the itemized statement required by section        7,453        

1311.26 of the Revised Code shall be filed with the school         7,454        

district board.                                                                 

      Sec. 3323.091.  (A)  The department of mental health, the    7,463        

department of mental retardation and developmental disabilities,   7,464        

the department of youth services, and the department of            7,465        

rehabilitation and correction shall establish and maintain         7,466        

special education programs for handicapped children in             7,467        

institutions under their jurisdiction according to standards       7,468        

adopted by the state board of education.  The superintendent of    7,469        

each institution providing special education under this chapter    7,470        

                                                          166    

                                                                 
may apply to the state department of education for unit funding,   7,471        

which shall be paid in accordance with section SECTIONS 3317.161   7,472        

AND 3317.162 of the Revised Code.                                  7,473        

      (B)  On or before the thirtieth day of June of each year,    7,475        

the superintendent of each institution that during the school      7,476        

year provided special education pursuant to this section shall     7,477        

prepare a statement for each handicapped child under twenty-two    7,478        

years of age who has received special education.  The statement    7,479        

shall contain the child's name and the name of the child's school  7,480        

district of residence.  Within sixty days after receipt of such    7,481        

statement, the department of education shall perform one of the    7,482        

following:                                                         7,483        

      (1)  For any child except a handicapped preschool child      7,485        

described in division (B)(2) of this section, pay to the           7,486        

institution submitting the statement an amount equal to the        7,487        

tuition calculated under division (A) of section 3317.08 of the    7,488        

Revised Code for the period covered by the statement, and deduct   7,489        

the same from the amount of state funds, if any, payable under     7,490        

sections 3317.022 and 3317.023 of the Revised Code, to the         7,491        

child's school district of residence or, if the amount of such     7,492        

state funds is insufficient, require the child's school district   7,493        

of residence to pay the institution submitting the statement an    7,494        

amount equal to the amount determined under this division.         7,495        

      (2)  For any handicapped preschool child not included in a   7,497        

unit approved under division (B) of section 3317.05 of the         7,498        

Revised Code, perform the following:                               7,499        

      (a)  Pay to the institution submitting the statement an      7,501        

amount equal to the tuition calculated under division (B) of       7,502        

section 3317.08 of the Revised Code for the period covered by the  7,503        

statement, except that in calculating the tuition under that       7,504        

section the operating expenses of the institution submitting the   7,505        

statement under this section shall be used instead of the          7,506        

operating expenses of the school district of residence;            7,507        

      (b)  Deduct from the amount of state funds, if any, payable  7,509        

                                                          167    

                                                                 
under sections 3317.022 and 3317.023 of the Revised Code to the    7,510        

child's school district of residence an amount equal to the        7,511        

amount paid under division (B)(2)(a) of this section.              7,512        

      Sec. 3323.12.  The board of education of a school district   7,521        

shall provide home instruction for handicapped children three to   7,522        

twenty-one years of age who are unable to attend school, even      7,523        

with the help of special transportation.  The board may arrange    7,524        

for the provision of home instruction for a child by a                          

cooperative agreement or contract with a county board of mental    7,525        

retardation and developmental disabilities or other educational    7,526        

agency.  For the purposes of determining average formula ADM       7,527        

under section 3317.03 of the Revised Code, five hours of home      7,529        

instruction shall be equivalent to attendance for five school      7,530        

days.                                                                           

      Sec. 3345.122.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  7,532        

A MEMBER OF A BOARD OF TRUSTEES OF AN INSTITUTION OF HIGHER        7,533        

EDUCATION, AS DEFINED IN SECTION 3345.12 OF THE REVISED CODE, IS   7,534        

NOT LIABLE IN DAMAGES IN A CIVIL ACTION FOR INJURY, DEATH, OR                   

LOSS TO PERSON OR PROPERTY THAT ALLEGEDLY IS CAUSED BY AN          7,535        

EXPENDITURE MADE OR A CONTRACT ENTERED INTO BY THE INSTITUTION OF  7,536        

HIGHER EDUCATION UNLESS THE TRUSTEE ACTED WITH MALICIOUS PURPOSE,  7,537        

IN BAD FAITH, OR IN A WANTON OR RECKLESS MANNER WITH RESPECT TO    7,538        

THE EXPENDITURE OR CONTRACT.                                                    

      Sec. 3704.14.  (A)  As used in this section:                 7,547        

      (1)  "Basic motor vehicle inspection and maintenance         7,549        

program" or "basic program" means a motor vehicle inspection and   7,550        

maintenance program that complies with the requirements governing  7,551        

motor vehicle inspection and maintenance programs under the        7,553        

"Clean Air Act Amendments" and that is not an enhanced motor                    

vehicle inspection and maintenance program.                        7,554        

      (2)  "Clean Air Act Amendments" means the "Clean Air Act     7,556        

Amendments of 1990," 91 Stat. 685, 42 U.S.C.A. 7401, as amended,   7,557        

and regulations adopted under it.                                  7,558        

      (3)  "Contractor" means any person who has entered into a    7,560        

                                                          168    

                                                                 
contract under division (D) of this section.                       7,561        

      (4)  "District of registration" means the district of        7,563        

registration of a motor vehicle as determined under section        7,564        

4503.10 of the Revised Code.                                       7,565        

      (5)  "Enhanced motor vehicle inspection and maintenance      7,567        

program" or "enhanced program" means a motor vehicle inspection    7,568        

and maintenance program that complies with the requirements        7,569        

governing an enhanced motor vehicle inspection and maintenance     7,570        

program under the "Clean Air Act Amendments."                      7,571        

      (6)  "Licensee" means any person licensed under division     7,573        

(C) of this section.                                               7,574        

      (7)  "Metropolitan planning organization" means a            7,576        

metropolitan planning organization designated under section 9(a)   7,577        

of the "Federal-Aid Highway Act of 1962," 76 Stat. 1148, 23        7,578        

U.S.C.A. 134, as amended.                                          7,579        

      (8)  "Motor vehicle" and "vehicle" have the same meanings    7,581        

as in section 4501.01 of the Revised Code.                         7,582        

      (9)  "Waiver limit" means the cost of repairs needed for a   7,584        

motor vehicle to pass a motor vehicle emissions inspection under   7,585        

this section above which the owner of the motor vehicle need not   7,586        

have the repairs performed on the vehicle and may receive a        7,587        

waiver under division (F) of this section.  For a motor vehicle    7,588        

the district of registration of which is OR IS LOCATED in a        7,589        

county classified as moderate nonattainment that is subject to a   7,591        

basic or an enhanced motor vehicle inspection and maintenance      7,592        

program, "waiver limit" means more than one hundred dollars for a  7,593        

vehicle of a 1980 or earlier model year and more than two hundred  7,594        

dollars for a vehicle of a 1981 or later model year.  For a motor  7,595        

vehicle the district of registration of which is in a county       7,596        

classified as serious, severe, or extreme nonattainment and that   7,597        

is subject to an enhanced motor vehicle inspection and             7,598        

maintenance program, "waiver limit" means more than four hundred   7,599        

fifty dollars.  "Waiver limit" also includes the cumulative        7,600        

amount of the annual adjustments to each of the amounts specified  7,601        

                                                          169    

                                                                 
in this division made by the director pursuant to regulations      7,602        

adopted under section 502(b)(3)(B)(v) of the "Clean Air Act        7,603        

Amendments."  "Waiver limit" does not include the cost of any      7,604        

repairs performed on a vehicle for the purpose of restoring the    7,605        

vehicle in accordance with the findings of the visual              7,606        

anti-tampering portion of a motor vehicle emissions inspection     7,607        

conducted under this section.                                      7,608        

      (B)  The director of environmental protection shall          7,610        

implement and supervise a motor vehicle inspection and             7,611        

maintenance program in any county classified as moderate,          7,612        

serious, severe, or extreme nonattainment for carbon monoxide or   7,613        

ozone in accordance with the "Clean Air Act Amendments."  The      7,614        

director shall implement and supervise a basic or an enhanced      7,615        

motor vehicle inspection and maintenance program in a county that  7,616        

is within an area classified as nonattainment for carbon monoxide  7,617        

or ozone when such a program is included in the air quality        7,618        

maintenance plan or contingency plan for the nonattainment area    7,619        

that includes the county and that is submitted to the United       7,620        

States environmental protection agency by the director as          7,621        

required under section 175A of the "Clean Air Act Amendments" as   7,622        

part of a request for redesignation of the nonattainment area as   7,623        

attainment for carbon monoxide or ozone under section 107(d) of    7,624        

that act, and the director determines that the conditions          7,625        

requiring implementation of such a program and set forth in        7,626        

either such plan have been met.  The director shall implement and  7,627        

supervise the enhanced program in any county as required under     7,628        

section 3704.142 of the Revised Code.  The director may terminate  7,629        

the program in any county that is subject to this section in       7,630        

accordance with division (K)(2) of this section.  The director     7,631        

shall adopt, and may amend or rescind, rules to facilitate the     7,632        

implementation, supervision, administration, operation, and        7,633        

enforcement of the program, including, without limitation, rules   7,634        

providing for all of the following:                                7,635        

      (1)  The form of all inspection certificates, distribution   7,637        

                                                          170    

                                                                 
of inspection certificates to reinspection stations licensed       7,638        

under division (C) of this section, and form and distribution of   7,639        

any other papers or documents necessary or convenient to the       7,640        

program.  The rules shall include, without limitation, the         7,641        

requirement that all inspection certificates bear a statement      7,642        

that reads:  "This automobile inspection is the result of          7,643        

requirements under the Clean Air Act Amendments enacted by the     7,644        

United States Congress.  Any questions or comments you may have    7,645        

about this program may be directed to your United States senator   7,646        

in care of the United States Senate, The Capitol, Washington,      7,647        

D.C. 20510 or to your United States representative in care of The  7,648        

THE United States House of Representatives, The Capitol,           7,650        

Washington, D.C. 20515."                                           7,651        

      (2)  The replacement of lost or stolen certificates,         7,653        

papers, or documents;                                              7,654        

      (3)  Inspection procedures and standards to be used in       7,656        

motor vehicle emissions inspections conducted under this section,  7,657        

including, without limitation, a requirement that the inspections  7,658        

test for carbon monoxide and hydrocarbons at idle or loaded mode   7,659        

conditions; a requirement that the inspections test opacity for    7,660        

particulates for diesel fueled vehicles; standards establishing    7,661        

maximum allowable emissions of those pollutants, for both          7,662        

gasoline fueled and diesel fueled vehicles, for each model year    7,663        

of motor vehicles inspected; a requirement that beginning with     7,664        

the 1994 model year, the inspections utilize the on-board          7,665        

diagnostic computer links mandated by the "Clean Air Act           7,666        

Amendments"; requirements governing the computerized exhaust       7,667        

analyzer system to be used by any contractor conducting            7,668        

inspections and any licensees conducting reinspections; tampering  7,669        

parameter inspection procedures and standards to be used in the    7,670        

visual anti-tampering portion of an inspection conducted under     7,671        

this section; requirements governing the engine tune-up that       7,672        

shall be performed on any motor vehicle that fails an inspection   7,673        

conducted under this section, including, without limitation,       7,674        

                                                          171    

                                                                 
requirements that specific items be checked and repaired,          7,675        

replaced, or adjusted as necessary to restore the motor vehicle    7,676        

to proper working order or specifications; tailpipe emissions      7,677        

improvement requirements specified by percentage; a waiver repair  7,678        

verification system; and any other necessary waiver procedures     7,679        

for motor vehicles that fail an inspection under this section;     7,680        

      (4)  A system for the maintenance and reporting of           7,682        

inspection and reinspection station data and records;              7,683        

      (5)  The manner of identifying exempt vehicles;              7,685        

      (6)  Inspection, and supervision thereof, of fleets and      7,687        

governmental vehicles under divisions (G) and (H) of this          7,688        

section;                                                           7,689        

      (7)  Establishment of specifications for an identification   7,691        

sign that reinspection stations licensed under division (C) of     7,692        

this section shall display in a conspicuous manner;                7,693        

      (8)  The issuance of motor vehicle inspection certificates   7,695        

only to reinspection stations licensed under division (C) of this  7,696        

section that continue to comply with this section;                 7,697        

      (9)  The surveillance of reinspection stations licensed      7,699        

under division (C) of this section and of inspection stations      7,700        

operated by any contractor hired to conduct inspections under      7,701        

this section to ensure that quality testing and this section and   7,702        

rules adopted under it are being adhered to throughout the         7,703        

inspection and reinspection process;                               7,704        

      (10)  The information to be included in applications for     7,706        

licenses filed under division (C) of this section and the          7,707        

procedure for filing those applications;                           7,708        

      (11)  The establishment of a referee inspection system by    7,710        

the director to resolve disagreements between owners of motor      7,711        

vehicles and inspection and reinspection stations regarding        7,712        

inspection and reinspection results, including, without            7,713        

limitation, procedures for the collection of an inspection fee     7,714        

that a referee inspection station may charge for any motor         7,715        

vehicle inspection conducted by it.  The fee shall not exceed the  7,716        

                                                          172    

                                                                 
amount of the inspection or reinspection fee paid by the owner of  7,717        

the motor vehicle established under division (D)(7) of this        7,718        

section for the original inspection or a reinspection of the       7,719        

motor vehicle under this section.                                  7,720        

      (12)  The locations of computerized, high-volume,            7,722        

contractor-operated motor vehicle inspection stations conducting   7,723        

inspections for the purposes of this section.  The rules shall     7,724        

require both of the following:                                     7,725        

      (a)  In urban metropolitan statistical areas and             7,727        

consolidated metropolitan statistical areas, as defined by the     7,728        

bureau of the census in the United States department of commerce,  7,729        

eighty per cent of the population that is subject to this section  7,730        

be no more than five miles from an inspection station and one      7,731        

hundred per cent of that population be no more than ten miles      7,732        

from an inspection station;                                        7,733        

      (b)  In rural areas, as defined by the bureau of the census  7,735        

in the United States department of commerce, one hundred per cent  7,736        

of the population that is subject to this section be no more than  7,737        

fifteen miles from an inspection station.                          7,738        

      (13)  A requirement that contractor-operated inspection      7,740        

stations conducting inspections under this section be in           7,741        

operation for at least forty-five hours per week, which shall      7,742        

include, without limitation, operating hours in the evening and    7,743        

on Saturdays;                                                      7,744        

      (14)  A requirement that any contractor hired to conduct     7,746        

inspections under this section not allow vehicle waiting time to   7,747        

exceed an average of fifteen minutes and the establishment of      7,748        

minimum performance penalties for failure to comply with that      7,749        

requirement;                                                       7,750        

      (15)  An adequate queuing area, as determined by the         7,752        

director, at each contractor-operated inspection station           7,753        

conducting inspections under this section.  The rules adopted      7,754        

under division (B)(15) of this section shall not arbitrarily       7,755        

discriminate against any person who can reasonably CAN be          7,756        

                                                          173    

                                                                 
expected to submit a proposal under this section for any contract  7,757        

provided for in division (D) of this section.                      7,758        

      (16)  Conditions for the suspension and revocation of        7,760        

licenses and inspector certifications issued under this section;   7,761        

      (17)  The commencement date of the basic motor vehicle       7,763        

inspection and maintenance program established under this section  7,764        

shall be July 1, 1994, in all affected counties classified as      7,765        

moderate nonattainment for carbon monoxide or ozone under the      7,767        

"Clean Air Act Amendments" on the effective date of this                        

amendment SEPTEMBER 27, 1993, other than Cuyahoga county.  The     7,769        

commencement date of the enhanced program in a county so           7,770        

classified as moderate nonattainment for carbon monoxide or ozone  7,771        

on the effective date of this amendment SEPTEMBER 27, 1993, for    7,772        

which the implementation and supervision of the enhanced program   7,774        

was requested under section 3704.142 of the Revised Code shall be  7,775        

January 1, 1995.  The commencement date of the program in any      7,776        

other affected counties, other than Cuyahoga county, shall be the  7,777        

date established by the director.                                               

      (18)  A requirement that reinspections under the enhanced    7,779        

motor vehicle inspection and maintenance program be conducted      7,780        

only by a contractor hired to conduct inspections under this       7,781        

section;                                                           7,782        

      (19)  A requirement that each inspection station operated    7,784        

by a contractor, each licensed reinspection station, and each      7,785        

referee inspection station, prominently display in a location      7,786        

that is readily visible to persons whose motor vehicles are being  7,787        

tested pursuant to this section a sign that contains the same      7,788        

language that is required to be printed on inspection              7,789        

certificates under division (B)(1) of this section.                7,790        

      (C)(1)  The director of environmental protection shall       7,792        

issue licenses for reinspection stations for the purposes of the   7,793        

basic motor vehicle inspection and maintenance program             7,794        

established under this section for two-year periods, except that   7,795        

for the initial license period for any station, the director may   7,796        

                                                          174    

                                                                 
issue the license for a period not to exceed five years.  The      7,797        

director may include terms and conditions as part of any license   7,798        

issued to ensure compliance with this section and rules adopted    7,799        

under it.                                                          7,800        

      The director may issue a license for each reinspection       7,802        

station for which an application is filed that complies with this  7,803        

section and rules adopted under it.  Each application shall        7,804        

include both of the following:                                     7,805        

      (a)  A nonrefundable fee of one hundred dollars for each     7,807        

initial license or a nonrefundable fee of fifty dollars for        7,808        

renewal of any license;                                            7,809        

      (b)  A demonstration that the reinspection station will      7,811        

comply with this section and the director's rules adopted under    7,812        

it.                                                                7,813        

      (2)  Each licensee shall conduct reinspections as required   7,815        

by the director's rules.  The licensee shall provide an            7,816        

inspection certificate for vehicles that pass a reinspection       7,817        

under this section.                                                7,818        

      (3)  A licensee shall charge the fee under the basic         7,820        

program that is established under division (D)(7) of this section  7,821        

for any reinspection performed by the licensee under this          7,822        

section.                                                           7,823        

      (4)  A licensee may charge each person for services.         7,825        

However, fees for reinspection shall be separately stated from     7,826        

any other charge to the person.                                    7,827        

      (5)  No licensee shall require as a condition of performing  7,829        

a reinspection that any needed repairs or adjustments to a         7,830        

vehicle be done by the licensee.                                   7,831        

      (6)  A licensee shall maintain and make available for        7,833        

inspection by the director or the director's authorized            7,834        

representative accurate records as required by rules adopted       7,836        

under this section.                                                             

      (7)  The director shall credit the moneys the director       7,839        

receives under division (C) of this section to the motor vehicle                

                                                          175    

                                                                 
inspection and maintenance fund created in division (I) of this    7,840        

section.                                                           7,841        

      (D)(1)  The initial motor vehicle inspections conducted      7,843        

under the basic motor vehicle inspection and maintenance program,  7,844        

and all inspections and reinspections conducted under the          7,845        

enhanced program, required under this section shall be conducted   7,846        

by one or more private contractors.  The director of               7,847        

administrative services shall issue and award contracts pursuant   7,848        

to a request for proposal process.  In doing so, the director      7,849        

shall consider factors in the interest of consumers, including at  7,850        

least consumer price, service quality, service delivery time, and  7,851        

convenience.  The director shall use the director's best efforts   7,853        

to secure as many proposals as possible for each contract to be    7,854        

entered into under division (D) of this section, which shall       7,855        

include the division of the state into independent zones for the   7,856        

purpose of submission of the proposals and awarding of the         7,857        

contracts.  Each such zone shall consist of a consolidated         7,858        

metropolitan statistical area or, if such an area does not exist,  7,859        

of a metropolitan statistical area, as defined by the bureau of    7,860        

the census of IN the United States department of commerce.         7,861        

      Contracts awarded under division (D) of this section are     7,863        

subject to section 153.012 of the Revised Code.  For the purpose   7,864        

of that section, the operation of the motor vehicle inspection     7,865        

and maintenance program is hereby deemed to be a public            7,866        

improvement.                                                       7,867        

      The director shall not enter into a contract for the         7,869        

purposes of this section with any person holding a current, valid  7,870        

contract to act as a deputy registrar under section 4503.03 of     7,871        

the Revised Code.                                                  7,872        

      A contractor shall be paid from moneys generated by the      7,874        

applicable inspection fee established by the director of           7,875        

environmental protection under division (D)(7) of this section.    7,876        

No general revenue funds shall be used to pay any contractor.  A   7,877        

contractor shall assume, or in accordance with a lease required    7,878        

                                                          176    

                                                                 
under division (E) of this section shall provide for the           7,879        

assumption of, all initial capital investment costs of the motor   7,880        

vehicle inspection and maintenance program established under this  7,881        

section with regard to the initial inspections and reinspections   7,882        

required to be conducted by a contractor under this section and    7,883        

shall amortize, or in accordance with such a lease shall provide   7,884        

for the amortization of, those costs over the period of the        7,885        

initial contract.                                                  7,886        

      (2)  The director of administrative services shall require   7,888        

each potential contractor to include as a part of the potential    7,889        

contractor's proposal detailed information concerning, without     7,891        

limitation, all of the following:                                  7,892        

      (a)  The financial condition of the potential contractor;    7,894        

      (b)  Any specialized experience and technical competence of  7,896        

the potential contractor in connection with the type of services   7,897        

required for the program;                                          7,898        

      (c)  The potential contractor's past record of performance   7,900        

with other government agencies or public entities and with         7,901        

private industry, including, without limitation, such matters as   7,902        

the ability to meet schedules and the names of persons who will    7,903        

serve as references concerning the quality of the potential        7,904        

contractor's work;                                                 7,905        

      (d)  The capacity of the potential contractor to perform     7,907        

the work within the specified time limitations;                    7,908        

      (e)  The potential contractor's proposed method and          7,910        

equipment to accomplish the work required;                         7,911        

      (f)  The person from whom the potential contractor proposes  7,913        

to lease real property, including land, buildings, and other       7,914        

structures, necessary for the operation of the program as          7,915        

required in division (E) of this section, including information    7,916        

concerning at least all of the following:                          7,917        

      (i)  Any specialized experience and technical competence of  7,919        

the person;                                                        7,920        

      (ii)  The person's past record of performance with other     7,922        

                                                          177    

                                                                 
government agencies or public entities and with private industry,  7,923        

including the ability to meet schedules;                           7,924        

      (iii)  Names of individuals who will serve as references     7,926        

concerning the quality of the person's work;                       7,927        

      (iv)  The capacity of the person to perform the work within  7,929        

the specified time limitations.                                    7,930        

      (g)  The potential contractor's proposed schedule for        7,932        

leasing of inspection sites, equipping of facilities, training of  7,933        

personnel, and implementation of a public education program.       7,934        

      Each potential contractor shall include with the potential   7,936        

contractor's proposal a signed statement from the person           7,938        

identified under division (D)(2)(f) of this section indicating     7,939        

that the person understands the applicable requirements            7,940        

established under this section and rules adopted under it and      7,941        

intends to comply with those requirements.                         7,942        

      (3)  The director of administrative services shall require   7,944        

a performance bond of not less than one million dollars.  Each     7,945        

proposal shall be accompanied by a letter of commitment from a     7,946        

bonding company stating that if the proposal is accepted, the      7,947        

bonding company will issue such a bond.                            7,948        

      (4)(a)  The director of administrative services shall        7,950        

review all information submitted with proposals under division     7,951        

(D)(2) of this section for compliance with proposal                7,952        

specifications.  The director may require any potential            7,953        

contractor to supplement the potential contractor's proposal with  7,955        

oral commentary for clarification of the proposal document and to  7,957        

determine the qualifications of the potential contractor.  Any     7,958        

clarification of information included in the proposal also shall   7,959        

be in writing.  The director shall reject the proposal of any      7,960        

potential contractor whom the director determines to be            7,961        

unqualified.                                                                    

      (b)  Although the director may require clarification of      7,963        

information submitted with a proposal in accordance with division  7,964        

(D)(4)(a) of this section, the director shall not change the       7,965        

                                                          178    

                                                                 
proposal specifications for a contract following the issuance of   7,966        

the request for proposals for that contract.                       7,967        

      (5)(a)  The director of administrative services shall award  7,969        

an initial contract for a period of operation of not more than     7,970        

ten years.  Except as otherwise provided in division (D)(5)(b) of  7,971        

this section, a contract may be renewed for periods of not more    7,972        

than five years each, by mutual agreement of the director and the  7,973        

contractor.  Any contract awarded under division (D)(5)(a) of      7,974        

this section is subject to the approval of the controlling board.  7,975        

      (b)  If the implementation and supervision of the enhanced   7,977        

motor vehicle inspection and maintenance program in Cuyahoga       7,978        

county is requested under section 3704.142 of the Revised Code     7,979        

and the initial contract for the operation of the motor vehicle    7,980        

inspection and maintenance program in that county is modified to   7,981        

provide for the operation of the enhanced program in that county,  7,982        

the initial contract for the operation of the motor vehicle        7,983        

inspection and maintenance program in that county that is in       7,984        

effect on the effective date of this amendment SEPTEMBER 27,       7,986        

1993, as so modified, may be renewed for a period of not more      7,987        

than ten years so that the first renewal of that contract will     7,988        

expire on the same date as the initial contract for the operation  7,989        

of the enhanced program in the other counties in the same          7,990        

nonattainment area as Cuyahoga county.  That first renewal shall   7,991        

be made by mutual agreement of the director and the contractor     7,992        

and is subject to the approval of the controlling board.  Any      7,993        

subsequent renewals of the contract for the operation of the       7,994        

program in Cuyahoga county are subject to division (D)(5)(a) of    7,995        

this section.                                                                   

      (6)  A contract entered into under division (D) of this      7,997        

section shall include, without limitation, all of the following    7,998        

provisions:                                                        7,999        

      (a)  A requirement that the contractor enter into a lease    8,001        

with the person identified in the contractor's proposal under      8,002        

division (D)(2)(f) of this section for real property, including    8,003        

                                                          179    

                                                                 
land, buildings, and other structures, necessary for the           8,004        

operation of the program as required in division (E) of this       8,005        

section;                                                           8,006        

      (b)  A requirement that the contractor provide any           8,008        

equipment, parts, tools, services, personnel, supplies,            8,009        

materials, and program software and software updates, and design   8,010        

and implement a comprehensive public information program,          8,011        

necessary to conduct motor vehicle inspections and reinspections   8,012        

required to be conducted by a contractor under this section and    8,013        

data communication links for reinspection stations licensed under  8,014        

division (C) of this section;                                      8,015        

      (c)  A provision allowing reasonable compensation, as        8,017        

determined by the director of environmental protection, as         8,018        

liquidated damages to the contractor if the motor vehicle          8,019        

inspection and maintenance program established under this section  8,020        

is terminated by law or its operation is discontinued during the   8,021        

term of a contract or renewal, including, without limitation,      8,022        

reasonable compensation for the unamortized costs of the           8,023        

buildings, improvements, equipment, parts, tools, services,        8,024        

supplies, and materials used by the contractor in the operation    8,025        

of the program and the value of the remaining term of the          8,026        

contract to the contractor.  If a dispute arises as to the amount  8,027        

of the compensation to be paid, it shall be submitted to and       8,028        

determined by the court of claims under Chapter 2743. of the       8,029        

Revised Code.  The contractor shall remit any compensation so      8,030        

received for the unamortized costs of the buildings and            8,031        

improvements to the person with whom the contractor has entered    8,032        

into a lease in accordance with division (E) of this section.      8,033        

      (d)  A provision specifying that the forms for inspection    8,035        

certificates are to be furnished by the contractor to the          8,036        

director of environmental protection and that they shall conform   8,037        

to the standards established by the director of environmental      8,038        

protection in rules adopted under division (B)(1) of this          8,039        

section.  The director of environmental protection shall           8,040        

                                                          180    

                                                                 
distribute the inspection certificates to reinspection stations    8,041        

licensed under division (C) of this section as needed.             8,042        

      (e)  A provision allowing the director to require the        8,044        

contractor to upgrade testing equipment in response to             8,045        

improvements in technology and to negotiate reasonable             8,046        

compensation for that upgrading.                                   8,047        

      (7)  The director of environmental protection shall          8,049        

establish inspection and reinspection fees to be paid by owners    8,050        

of motor vehicles inspected under this section, provided that an   8,051        

owner shall pay the inspection fee for the initial, annual, or     8,052        

biennial inspection, as appropriate, only if the owner's vehicle   8,053        

passes that inspection.  The.  BEGINNING JULY 1, 1998, OR FIFTEEN  8,056        

DAYS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, WHICHEVER IS      8,057        

LATER, AN OWNER SHALL PAY THE INSPECTION FEE FOR EACH INITIAL      8,058        

INSPECTION CONDUCTED ON THE OWNER'S MOTOR VEHICLE DURING EACH      8,059        

INSPECTION PERIOD.  AN OWNER SHALL NOT PAY THE REINSPECTION FEE    8,060        

FOR A FIRST REINSPECTION CONDUCTED ON THE OWNER'S MOTOR VEHICLE,   8,061        

IF A REINSPECTION IS REQUIRED, UNLESS AN INSPECTION FEE WAS NOT    8,062        

COLLECTED FOR THE MOTOR VEHICLE'S INITIAL INSPECTION.  AN OWNER    8,063        

SHALL PAY THE REINSPECTION FEE FOR THE SECOND AND EACH SUBSEQUENT  8,064        

REINSPECTION CONDUCTED ON THE OWNER'S MOTOR VEHICLE, IF ANY,       8,065        

DURING EACH INSPECTION PERIOD.                                                  

      THE fees shall be sufficient to provide the contractor's     8,069        

compensation identified in any contract entered into under         8,070        

division (D) of this section plus the costs of the environmental   8,071        

protection agency in implementing and administering the motor      8,072        

vehicle inspection and maintenance program established in this     8,073        

section.  The inspection and reinspection fees shall not differ    8,074        

in amount and shall not exceed ten dollars and fifty cents under   8,075        

the basic motor vehicle inspection and maintenance program or      8,076        

twenty-five dollars under the enhanced program.  The director,                  

during the term of a contract or renewal, may increase the         8,077        

inspection and reinspection fees if the director determines that   8,079        

it is necessary to cover costs of the program, including           8,080        

                                                          181    

                                                                 
increased costs resulting from any upgrading of testing equipment  8,081        

pursuant to division (D)(6)(e) of this section, or to prevent a    8,082        

possible breach of contract, but shall not increase the fees       8,083        

above ten dollars and fifty cents under the basic program or       8,084        

twenty-five dollars under the enhanced program.                    8,085        

      (8)  The contractor shall do both of the following:          8,087        

      (a)  Collect the fees established under division (D)(7) of   8,089        

this section and forward to the director of environmental          8,090        

protection the portion due the environmental protection agency;    8,091        

      (b)  Maintain and make available for inspection by the       8,093        

director of environmental protection, the auditor of state, or     8,094        

their authorized representatives accurate records concerning the   8,095        

collection of the fees.  For the purposes of division (D)(8)(b)    8,096        

of this section, record-keeping and accounting practices shall be  8,097        

approved by the director.  Failure to maintain or falsification    8,098        

of fee collection records is grounds for breach of contract.       8,099        

      (9)  The director of environmental protection shall credit   8,101        

the moneys the director receives under division (D)(8)(a) of this  8,103        

section to the motor vehicle inspection and maintenance fund       8,104        

created in division (I) of this section.                           8,105        

      (10)  A contractor shall maintain and make available for     8,107        

inspection by the director of environmental protection or the      8,108        

director's authorized representative accurate records as required  8,109        

by rules adopted under this section.                               8,110        

      (11)  If a contractor fails to perform an obligation         8,112        

imposed by the contract entered into under division (D) of this    8,113        

section, the director of environmental protection shall request    8,114        

the attorney general to bring a civil action to recover the        8,115        

amount of the bond executed under division (D)(3) of this section  8,116        

as well as other appropriate relief.  The director shall deposit   8,117        

any moneys recovered in such a civil action in the motor vehicle   8,118        

inspection and maintenance fund created in division (I) of this    8,119        

section.                                                           8,120        

      (12)  The director of environmental protection shall         8,122        

                                                          182    

                                                                 
compile and periodically revise lists of reinspection stations     8,123        

licensed under division (C) of this section and located within     8,124        

individual areas that are subject to the basic motor vehicle       8,125        

inspection and maintenance program under this section.  Each such  8,126        

list also shall contain the locations of inspection stations       8,127        

operated by a contractor within the applicable area.  A            8,128        

contractor shall provide the appropriate list to any owner whose   8,129        

motor vehicle fails the initial inspection required under this     8,130        

section.                                                           8,131        

      (13)  The director of environmental protection shall         8,133        

compile and periodically revise lists of inspection stations       8,134        

operated by a contractor located within individual areas subject   8,135        

to the enhanced motor vehicle inspection and maintenance program   8,136        

under this section.  A contractor shall provide the appropriate    8,137        

list to any owner whose motor vehicle fails the initial            8,138        

inspection required under this section.                            8,139        

      (14)  No owners, officers, or employees of a contractor      8,141        

submitting a proposal or awarded a contract under division (D) of  8,142        

this section shall have a principal interest in the person         8,143        

identified by the contractor under division (D)(2)(f) of this      8,144        

section or in any reinspection station licensed under division     8,145        

(C) of this section.                                               8,146        

      (15)  The department of administrative services may issue    8,148        

to the environmental protection agency a release and permit under  8,149        

section 125.06 of the Revised Code pursuant to which that agency   8,150        

may issue and award a contract or contracts under division (D) of  8,151        

this section.  If a release and permit is issued, any reference    8,152        

to the director of administrative services under divisions (D)     8,153        

and (E) of this section is deemed to be a reference to the         8,154        

director of environmental protection.                              8,155        

      (E)(1)  Notwithstanding section 3704.01 of the Revised       8,157        

Code, as used in division (E) of this section, "person" has the    8,158        

same meaning as in section 1.59 of the Revised Code.               8,159        

      (2)  In order to fulfill the requirements of this section    8,161        

                                                          183    

                                                                 
and to comply with the "Clean Air Act Amendments," any contractor  8,163        

that is awarded one or more contracts under division (D) of this   8,164        

section shall enter into one or more assignable and renewable      8,165        

leases with another person for the rental and use of real          8,166        

property, including land, buildings, and other structures.         8,167        

      (3)  The director of administrative services shall require   8,169        

a contractor to make assignments of all leases under which the     8,170        

contractor is lessee for real property to another contractor       8,171        

awarded a contract under division (D) of this section.  The        8,172        

director shall require any contractor that is awarded a            8,173        

subsequent contract under that division to renew the lease into    8,174        

which the contractor entered under division (E)(2) of this         8,175        

section, or, if a different contractor is awarded such a           8,176        

subsequent contract, the director shall require that contractor    8,177        

to enter into a lease with the person who was the lessor of the    8,178        

previous contractor.                                               8,179        

      (F)(1)(a)  Except as otherwise provided in this section and  8,181        

rules adopted under it, the owner of any self-propelled motor      8,182        

vehicle the district of registration of which is or is located in  8,183        

a county that is subject to this section shall have the vehicle    8,184        

inspected annually, within three hundred sixty-five days prior to  8,185        

the registration deadline established pursuant to rules adopted    8,186        

under section 4503.101 of the Revised Code, by a contractor in     8,187        

accordance with rules adopted under division (B)(3) of this        8,188        

section if that county is subject to the basic motor vehicle       8,189        

inspection and maintenance program pursuant to rules adopted       8,190        

under that division or shall have the vehicle so inspected         8,191        

biennially within three hundred sixty-five days prior to the       8,192        

registration deadline so established if that county is subject to  8,193        

the enhanced program pursuant to those rules.  If the district of  8,194        

registration of the motor vehicle is or is located in a county     8,195        

that is subject to the enhanced program pursuant to rules adopted  8,196        

under division (B)(3) of this section, the owner of the motor      8,197        

vehicle shall have it inspected and, if necessary, reinspected     8,198        

                                                          184    

                                                                 
only in a county that is subject to the enhanced program under     8,199        

those rules.  Any motor vehicle that fails the inspection shall    8,200        

be reinspected in accordance with rules adopted under that         8,201        

division.  If the owner's vehicle passes the inspection or any     8,202        

reinspection, the THE owner, at the time of the INITIAL            8,203        

inspection or AND THE SECOND AND EACH SUBSEQUENT reinspection, IF  8,205        

ANY, shall pay the applicable fee established under division       8,207        

(D)(7) of this section.  An owner of a motor vehicle the district  8,208        

of registration of which is or is located in a county that is      8,209        

subject to the basic program under this section and for which a    8,210        

multi-year registration is in effect under section 4503.103 of     8,211        

the Revised Code or rules adopted under it, in each of the years   8,212        

intervening between the year of the issuance of that registration  8,213        

and its expiration, shall have the vehicle inspected annually      8,214        

within the three hundred sixty-five days prior to the anniversary  8,215        

of the registration deadline applicable in the year in which the   8,216        

multi-year registration was issued.  An owner of a motor vehicle   8,217        

the district of registration of which is or is located in a        8,218        

county that is subject to the enhanced program under this section  8,219        

for which a multi-year registration is in effect under section     8,220        

4503.103 of the Revised Code or rules adopted under it,            8,221        

biennially during the years intervening between the year of                     

issuance of that registration and its expiration, shall have the   8,222        

vehicle inspected within three hundred sixty-five days prior to    8,223        

each of the biennial anniversaries of the registration deadline    8,224        

applicable in the year in which the multi-year registration was    8,225        

issued.  An owner who registers a motor vehicle after the          8,226        

registration deadline for the vehicle has passed in a year in      8,227        

which the vehicle is required to be inspected under division       8,228        

(F)(1)(a) of this section may have the vehicle inspected at any    8,229        

time between the registration deadline and the actual              8,230        

registration date.                                                 8,231        

      Division (F)(1) of this section does not require the         8,233        

inspection of a motor vehicle upon transfer of ownership or        8,234        

                                                          185    

                                                                 
possession.                                                        8,235        

      Except as otherwise provided in division (F)(3) or (4) of    8,237        

this section, proof that an inspection certificate was issued for  8,238        

a motor vehicle during the previous twelve months shall be         8,239        

provided before the registrar of motor vehicles may issue license  8,240        

plates for that vehicle under section 4503.40 or 4503.42 of the    8,241        

Revised Code.                                                      8,242        

      The owner of any motor vehicle that is required to be        8,244        

inspected under this section, but that is leased to another        8,245        

person may require the lessee to have the vehicle inspected and    8,246        

obtain the inspection certificate on behalf of the owner.          8,247        

      (b)  If a vehicle required to be inspected passes the        8,249        

inspection, the contractor shall give the owner an inspection      8,250        

certificate for the vehicle.                                       8,251        

      (c)  The contractor shall include as part of the inspection  8,253        

required under this section a visual anti-tampering inspection     8,254        

that meets the requirements established by rules adopted under     8,255        

division (B)(3) of this section.  If the visual anti-tampering     8,256        

inspection indicates that any emission control device has been     8,257        

removed, modified, or impaired, the owner shall have performed on  8,258        

the vehicle whatever repairs are necessary to pass the visual      8,259        

anti-tampering inspection and to restore the vehicle to its        8,260        

proper condition, including, without limitation, the restoration   8,261        

of any emission control device that was removed, modified, or      8,262        

impaired.  If the district of registration of the vehicle is or    8,263        

is located in a county that is subject to the basic motor vehicle  8,264        

inspection and maintenance program under this section, the owner   8,265        

then shall take the vehicle to a contractor or a licensee.  If     8,266        

the district of registration of the vehicle is or is located in a  8,267        

county that is subject to the enhanced program under this          8,268        

section, the owner then shall take the vehicle to a contractor.    8,269        

If the contractor or licensee determines that the vehicle has      8,270        

been restored to its proper condition and the vehicle then passes  8,271        

the tailpipe emissions inspection required under this section,     8,272        

                                                          186    

                                                                 
the contractor or licensee shall give the owner an inspection      8,273        

certificate for the vehicle.                                       8,274        

      (d)  Except as otherwise provided in division (F)(1)(f) of   8,276        

this section, if a vehicle required to be inspected under this     8,277        

section fails the inspection, and the contractor's visual          8,278        

anti-tampering inspection conducted under division (F)(1)(c) of    8,279        

this section does not reveal any removal, modification, or         8,280        

impairment of an emission control device or, if the original       8,281        

visual anti-tampering inspection revealed such a removal,          8,282        

modification, or impairment, the vehicle again fails the tailpipe  8,283        

emissions inspection after the owner has performed all necessary   8,284        

repairs to restore the vehicle to its proper condition, the owner  8,285        

shall have the cost of repairs necessary to pass the tailpipe      8,286        

emissions inspection estimated by a repair facility, which cost    8,287        

shall include the cost of an engine tune-up.  If the cost of the   8,288        

repairs that are necessary for the vehicle to pass the tailpipe    8,289        

emissions inspection do DOES not exceed the waiver limit for that  8,291        

vehicle, the owner shall have the repairs performed on the         8,292        

vehicle.  The owner then shall have the vehicle reinspected by a   8,294        

contractor or licensee.                                            8,295        

      If the vehicle passes the reinspection, the contractor or    8,297        

licensee shall give the owner an inspection certificate for the    8,298        

vehicle.  If the vehicle fails the reinspection, and the cost of   8,299        

the repairs already performed on the vehicle is less than the      8,300        

applicable waiver limit, the owner shall have additional repairs   8,301        

performed on the vehicle in order to enable it to pass another     8,302        

reinspection.  If, after repairs costing at least the applicable   8,303        

waiver limit have been performed on the vehicle under division     8,304        

(F)(1)(d) of this section, the vehicle fails the reinspection,     8,305        

but the reinspection indicates an improvement in tailpipe          8,306        

emissions of the pollutant concerning which the vehicle initially  8,307        

failed the inspection as specified in rules adopted under          8,308        

division (B)(3) of this section and if, following the repairs, no  8,309        

emission levels increase above the standard established by rules   8,310        

                                                          187    

                                                                 
adopted under that division for any pollutant concerning which     8,311        

the vehicle did not initially fail, the contractor shall give the  8,312        

owner an inspection certificate for the vehicle that includes a    8,313        

waiver indicating that the vehicle did not pass the required       8,314        

inspection, but that the owner had repairs costing at least the    8,315        

applicable waiver limit performed on the vehicle.                  8,316        

      For the purposes of divisions (F)(1)(d) to (f) of this       8,318        

section, only a contractor may do either of the following:         8,319        

      (i)  Issue inspection certificates that include waivers;     8,321        

      (ii)  Notwithstanding any provision of those divisions,      8,323        

conduct reinspections of vehicles the district of registration of  8,324        

which is or is located in a county that is subject to the          8,325        

enhanced program under this section.                               8,326        

      (e)  Except as otherwise provided in division (F)(1)(f) of   8,328        

this section, if the cost of the repairs that are necessary for    8,329        

the vehicle to pass the tailpipe emissions inspection is           8,330        

estimated to be more than the applicable waiver limit, the owner   8,331        

need not have all of those repairs performed on the vehicle, but   8,332        

shall have an engine tune-up performed on the vehicle that meets   8,333        

the standards established by rules adopted under division (B)(3)   8,334        

of this section as well as any other necessary repairs the cost    8,335        

of which, together with the cost of the engine tune-up, equals at  8,336        

least the applicable waiver limit.  Upon the owner's presentation  8,337        

of original repair receipts attesting that repairs costing at      8,338        

least the applicable waiver limit, including, without limitation,  8,339        

the engine tune-up required under division (F)(1)(e) of this       8,340        

section, have been performed on the vehicle, the contractor or     8,341        

licensee shall reinspect the vehicle to determine the              8,342        

effectiveness of the required engine tune-up.  If the              8,343        

reinspection indicates an improvement in tailpipe emissions of     8,344        

the pollutant concerning which the vehicle initially failed the    8,345        

inspection as specified in rules adopted under division (B)(3) of  8,346        

this section and if, following the engine tune-up, no emission     8,347        

levels increase above the standard established by rules adopted    8,348        

                                                          188    

                                                                 
under that division for any pollutant concerning which the         8,349        

vehicle did not initially fail, the contractor shall give the      8,351        

owner an inspection certificate for the vehicle that includes a    8,352        

waiver indicating that the vehicle did not pass the required       8,353        

inspection, but that the owner complied with all requirements      8,354        

governing waivers.                                                              

      (f)  If a vehicle required to be inspected under this        8,356        

section fails the inspection, and the contractor's visual          8,357        

anti-tampering inspection conducted under division (F)(1)(c) of    8,358        

this section does not reveal any removal, modification, or         8,359        

impairment of an emission control device or, if the original       8,360        

visual anti-tampering inspection revealed such a removal,          8,361        

modification, or impairment, the vehicle again fails the tailpipe  8,362        

emissions inspection after the owner has performed all necessary   8,363        

repairs to restore the vehicle to its proper condition, the owner  8,364        

may perform the repairs necessary for the vehicle to pass the      8,366        

tailpipe emissions inspection.  The owner shall keep a detailed    8,367        

record of the costs incurred in performing those repairs.  After   8,368        

performing repairs on the vehicle costing not more than the        8,369        

applicable waiver limit, the owner shall have the vehicle          8,370        

reinspected by the contractor or a licensee.                                    

      If the vehicle passes the reinspection, the contractor or    8,372        

licensee shall give the owner an inspection certificate for the    8,373        

vehicle.  If the vehicle fails the reinspection and the            8,374        

documented cost of the repairs performed by the owner is less      8,375        

than the applicable waiver limit, the owner shall have the cost    8,376        

of repairs necessary to pass the tailpipe emissions inspection     8,377        

estimated by a repair facility.  The estimate shall include,       8,378        

without limitation, the cost of an engine tune-up that meets the   8,379        

standards established by rules adopted under division (B)(3) of    8,380        

this section.  If the cost of the engine tune-up, together with    8,381        

the documented cost of the repairs performed by the owner, does    8,382        

not exceed the applicable waiver limit, the owner shall have the   8,383        

engine tune-up performed on the vehicle as well as any other       8,384        

                                                          189    

                                                                 
necessary repairs the cost of which, together with that            8,385        

documented cost and the cost of the engine tune-up, equals at      8,386        

least the applicable waiver limit.                                 8,387        

      If the documented cost of repairs performed by the owner     8,389        

and the estimated cost of an engine tune-up that meets the         8,390        

standards established in rules adopted under division (B)(3) of    8,391        

this section exceed the applicable waiver limit, the owner shall   8,392        

have additional repairs performed on the vehicle by a repair       8,393        

facility in order to enable it to pass another reinspection or     8,394        

until a minimum expenditure equal to the applicable waiver limit   8,395        

is met, whichever occurs first.                                    8,396        

      If, after repairs costing at least the applicable waiver     8,398        

limit have been performed on the vehicle under division (F)(1)(f)  8,399        

of this section, the vehicle fails the tailpipe reinspection, but  8,400        

the reinspection indicates an improvement in the tailpipe          8,401        

emissions of the pollutant concerning which the vehicle initially  8,402        

failed the inspection as specified in rules adopted under          8,403        

division (B)(3) of this section and if, following the repairs, no  8,404        

emission levels increase above the standard established by rules   8,405        

adopted under that division for any pollutant concerning which     8,406        

the vehicle did not initially fail, the contractor shall give the  8,407        

owner an inspection certificate for the vehicle that includes a    8,408        

waiver indicating that the vehicle did not pass the required       8,409        

inspection, but that the owner performed or had performed on the   8,410        

vehicle repairs costing at least the applicable waiver limit.      8,411        

      (g)  If a motor vehicle that is required to be inspected     8,413        

under this section is covered by a valid and unexpired emission    8,414        

performance warranty as provided under section 207(b) of the       8,416        

"Clean Air Act Amendments," the owner shall have any repairs                    

necessary for the vehicle to pass that inspection performed on     8,417        

the vehicle under that warranty.  Such a vehicle is not eligible   8,418        

for a waiver under division (F)(1)(d), (e), or (f) of this         8,419        

section.                                                           8,420        

      (2)  An owner or lessee of a motor vehicle required to be    8,422        

                                                          190    

                                                                 
inspected under this section and applicable rules adopted under    8,423        

it shall present an inspection certificate issued for that         8,424        

vehicle by a contractor or a licensee under this section when      8,425        

registering the vehicle under Chapter 4503. of the Revised Code.   8,426        

      (3)  The following motor vehicles are exempt from the        8,428        

inspection requirements of this section and applicable rules       8,429        

adopted under it:                                                  8,430        

      (a)  Vehicles over twenty-five years old, as determined by   8,432        

model year, on the date on which proof of an annual inspection     8,433        

otherwise would be required to be submitted with an application    8,434        

for registration of the vehicles under this section and Chapter    8,435        

4503. of the Revised Code;                                         8,436        

      (b)  Vehicles registered to military personnel assigned to   8,438        

military reservations outside this state, the district of          8,439        

registration of which is or is located in any county that is       8,440        

subject to this section;                                           8,441        

      (c)  Passenger cars and noncommercial motor vehicles, as     8,443        

defined in section 4501.01 of the Revised Code, that weigh over    8,444        

ten thousand pounds gross vehicle weight;                          8,445        

      (d)  Commercial cars, as defined in section 4501.01 of the   8,447        

Revised Code, having a taxable gross vehicle weight of more than   8,448        

ten thousand pounds as provided in section 4503.042 of the         8,449        

Revised Code;                                                      8,450        

      (e)  Historical vehicles registered under section 4503.181   8,452        

of the Revised Code;                                               8,453        

      (f)  Licensed collector's vehicles as defined in section     8,455        

4501.01 of the Revised Code;                                       8,456        

      (g)  Parade and exhibition vehicles registered under         8,458        

section 4503.18 of the Revised Code;                               8,459        

      (h)  Motorcycles as defined in section 4511.01 of the        8,461        

Revised Code;                                                      8,462        

      (i)  Electrically powered and alternatively fueled           8,464        

vehicles, including at least those that are equipped to operate    8,465        

using primarily one hundred per cent propane, butane, hydrogen,    8,466        

                                                          191    

                                                                 
alcohol, or natural gas as fuel;                                   8,467        

      (j)  Recreational vehicles as defined in section 4501.01 of  8,469        

the Revised Code.                                                  8,470        

      (4)  A motor vehicle, the legal title to which has never     8,472        

been transferred by a manufacturer, distributor, or dealer to an   8,473        

ultimate purchaser as defined in section 4517.01 of the Revised    8,475        

Code, is exempt from the inspection requirements of this section   8,476        

and rules adopted under it for a period of one year commencing on  8,477        

the date when the first certificate of title to the vehicle was    8,478        

issued on behalf of the ultimate purchaser under Chapter 4503. of  8,479        

the Revised Code if the district of registration of the vehicle    8,480        

is or is located in a county that is subject to the basic motor    8,481        

vehicle inspection and maintenance program under this section and  8,482        

rules adopted under it or is exempt from those inspection          8,483        

requirements for a period of two years commencing on the date      8,484        

when the first certificate of title to the vehicle was issued on   8,485        

behalf of the ultimate purchaser under that chapter if the         8,486        

district of registration of the vehicle is or is located in a      8,487        

county that is subject to the enhanced program under this section  8,488        

and rules adopted under it.                                                     

      (5)  The director shall notify, by mail, the owners of all   8,490        

motor vehicles, the district of registration of which is or is     8,491        

located in any county that is subject to this section, of the      8,492        

applicable requirements established under this section.            8,493        

      (G)  The owner of a fleet of twenty-five or more vehicles    8,496        

required to be inspected under this section, instead of having     8,497        

the owner's motor vehicles inspected by a contractor or            8,498        

reinspected by a contractor or a licensee, may conduct             8,499        

self-inspection of those vehicles in accordance with rules                      

adopted by the director of environmental protection under this     8,501        

section.  The rules shall establish, without limitation,           8,502        

requirements governing inspections and reinspections conducted by  8,503        

any such owner, any inspection stations owned and operated by any  8,504        

such owner for that purpose, and inspection equipment used for     8,505        

                                                          192    

                                                                 
that purpose; an annual reporting requirement to assist the        8,506        

director in determining compliance with this division; and the     8,507        

method of and procedures for payment of a fee that shall not       8,508        

exceed three dollars for each vehicle that is included in the      8,509        

self-inspection program.                                                        

      (H)  The federal government, the state, any political        8,511        

subdivision, and any agency or instrumentality of those entities,  8,512        

in accordance with rules adopted by the director of environmental  8,513        

protection under this section, shall have inspected by a           8,514        

contractor or reinspected by a contractor or a licensee or shall   8,515        

self-inspect any motor vehicles that they own and operate in any   8,516        

county that is subject to this section.  The director shall adopt  8,517        

rules under this section for the purposes of this division.  The   8,518        

rules shall establish, without limitation, an annual reporting     8,519        

requirement to assist the director in determining compliance with  8,520        

this division.  The director may issue a notice of violation to a  8,521        

governmental entity that the director finds has violated any       8,522        

specific prohibition or has failed to comply with any affirmative  8,523        

requirement of this section or any rule adopted under it.  The     8,524        

notice of violation shall set forth the specific violation or      8,525        

failure to comply allegedly committed by the governmental entity   8,526        

and shall be accompanied by an order requiring the governmental    8,527        

entity to pay to the director the appropriate civil penalty        8,528        

prescribed in this division.  A governmental entity that receives  8,529        

a notice of violation and order under this division for a          8,530        

violation or failure to comply is liable for a civil penalty of    8,531        

two hundred fifty dollars.  The director may request the attorney  8,532        

general to take appropriate action to effect compliance.           8,533        

Notwithstanding division (A) of this section, as used in this      8,534        

division, "motor vehicle" has the same meaning as in section       8,535        

4511.01 of the Revised Code.                                       8,536        

      (I)  There is hereby created in the state treasury the       8,538        

motor vehicle inspection and maintenance fund, which shall         8,539        

consist of moneys received by the director under this section and  8,540        

                                                          193    

                                                                 
section 3704.17 of the Revised Code.  The director shall use       8,541        

moneys in the fund solely for administration, supervision, and     8,542        

enforcement of the program established under this section and      8,543        

rules adopted under it and public education concerning the         8,544        

program.                                                           8,545        

      (J)  The director periodically shall review the information  8,547        

submitted to the director by licensed reinspection stations        8,548        

pursuant to rules adopted under division (C)(6) of this section,   8,550        

information submitted to the director by any contractor under      8,551        

division (D)(10) of this section, annual reports submitted by      8,553        

motor vehicle fleet owners under division (G) of this section and  8,554        

rules adopted under that division, and the list of motor vehicles  8,555        

for which multi-year registrations are in effect provided to the   8,556        

director under division (I)(2)(b) of section 4503.10 of the        8,558        

Revised Code, as necessary to determine whether owners of motor    8,559        

vehicles who have obtained multi-year registrations under section  8,560        

4503.103 of the Revised Code or rules adopted under it have        8,561        

complied with the requirement of division (F)(1)(a) of this        8,562        

section to have their vehicles inspected and obtain inspection     8,563        

certificates for them annually or biennially, whichever is         8,564        

applicable.  If the director finds from that information that, in  8,565        

a year intervening between the years of issuance and expiration    8,566        

of a multi-year registration in which an owner is required to      8,567        

have a vehicle inspected and obtain an inspection certificate for  8,568        

it under that division, the owner has not done so within the       8,569        

applicable three hundred sixty-five day period, the director       8,570        

immediately shall send written notice of that fact to the          8,572        

registrar of motor vehicles.  Upon receipt of information                       

submitted pursuant to rules adopted under division (C)(6) of this  8,573        

section, information submitted under division (D)(10) of this      8,574        

section, or the annual report of a fleet owner submitted pursuant  8,575        

to rules adopted under division (G) of this section indicating     8,576        

that an owner who was the subject of an earlier notice to the      8,577        

registrar under this division has had the vehicle named in the     8,578        

                                                          194    

                                                                 
notice inspected and has obtained an inspection certificate for    8,579        

it in compliance with division (F)(1)(a) of this section, the      8,580        

director immediately shall send written notice of that fact to     8,581        

the registrar.                                                     8,582        

      (K)(1)(a)  If a redesignation request demonstrating          8,584        

compliance with the national ambient air quality standard for      8,585        

carbon monoxide or ozone in a county designated as nonattainment   8,586        

for carbon monoxide or ozone and demonstrating that operation of   8,587        

a motor vehicle inspection and maintenance program is not          8,588        

necessary for attainment and maintenance of those standards in     8,589        

that county has been submitted to and is pending before the        8,590        

United States environmental protection agency under the "Clean     8,591        

Air Act Amendments," and if no release and permit has been issued  8,592        

to the environmental protection agency under division (D)(14)(15)  8,594        

of this section and section 125.06 of the Revised Code, the        8,595        

director of environmental protection may submit a written request  8,596        

to the director of administrative services to indefinitely delay   8,597        

the issuance of a request for proposals or the award of a          8,598        

contract under division (D) of this section for the operation of   8,599        

a motor vehicle inspection and maintenance program in that county  8,600        

or, if such a request for proposals has been issued under that     8,601        

division, to withdraw it.  Upon receipt of such a written request  8,602        

from the director of environmental protection, the director of     8,603        

administrative services shall take the requested actions.          8,604        

      (b)  If a release and permit has been issued to the          8,606        

environmental protection agency under division (D)(14)(15) of      8,607        

this section and section 125.06 of the Revised Code, the director  8,609        

of environmental protection may indefinitely delay the issuance    8,610        

of a request for proposals and award of a contract under division  8,611        

(D) of this section for the operation of a motor vehicle           8,612        

inspection and maintenance program or may withdraw any such        8,613        

request that has been issued under that division in connection     8,614        

with a county for which a redesignation request making the         8,615        

demonstrations described in division (K)(1)(a) of this section     8,616        

                                                          195    

                                                                 
has been submitted to and is pending before the United States      8,617        

environmental protection agency under the "Clean Air Act           8,618        

Amendments."                                                                    

      (c)  If no release and permit has been issued to the         8,620        

environmental protection agency under division (D)(14)(15) of      8,621        

this section and section 125.06 of the Revised Code, the director  8,623        

of environmental protection may submit a written request to the    8,624        

director of administrative services to proceed with the issuance   8,625        

of a request for proposals and the award of a contract for the     8,626        

operation of a motor vehicle inspection and maintenance program    8,627        

under division (D) of this section in a county for which a         8,628        

redesignation request described in division (K)(1)(a) of this      8,629        

section was submitted to the United States environmental           8,630        

protection agency or, if such a release and permit has been        8,631        

issued to the environmental protection agency, the director of     8,632        

environmental protection may proceed with the issuance of such a   8,633        

request under either of the following circumstances:               8,634        

      (i)  Upon disapproval of the redesignation request by the    8,636        

United States environmental protection agency;                     8,637        

      (ii)  Upon approval of the redesignation request by the      8,639        

United States environmental protection agency if the director of   8,640        

environmental protection determines that operation of a motor      8,641        

vehicle inspection and maintenance program in the county is        8,642        

necessary to protect and maintain compliance with the national     8,643        

ambient air quality standard for carbon monoxide or ozone in the   8,644        

county.                                                            8,645        

      If no such release and permit has been issued to the         8,647        

environmental protection agency, the director of administrative    8,648        

services, upon receipt of a written request from the director of   8,649        

environmental protection under division (K)(1)(c) of this          8,650        

section, shall take the requested actions.                         8,651        

      (2)  If at any time air quality monitoring data in any       8,653        

county where a motor vehicle inspection and maintenance program    8,654        

is required under this section and rules adopted under it          8,655        

                                                          196    

                                                                 
demonstrate that that county has attained and maintained           8,656        

compliance for three consecutive years with the national ambient   8,657        

air quality standard for carbon monoxide or ozone under the        8,659        

"Clean Air Act Amendments," the director, at the earliest                       

possible date, shall prepare and submit to the administrator of    8,660        

the United States environmental protection agency a demonstration  8,661        

that such attainment has been so achieved and maintained in that   8,662        

county.  If the administrator approves the director's submittal    8,663        

as demonstrating that compliance with the national ambient air     8,664        

quality standard for carbon monoxide or ozone under that act has   8,665        

been achieved and maintained in the county and if the director     8,666        

determines that continued operation of a motor vehicle inspection  8,667        

and maintenance program in the county is not necessary to protect  8,668        

and maintain compliance with the national ambient air quality      8,669        

standard for carbon monoxide or ozone, the director may rescind    8,670        

the rules adopted under division (B) of this section requiring     8,671        

implementation and operation of the program in that county.  A     8,672        

rescission shall take effect in such a county on the date of the   8,673        

expiration of the contract or renewal thereof provided for in      8,674        

division (D) of this section that next succeeds the                8,675        

administrator's approval of the demonstration in that county.      8,676        

      (L)  There is hereby created the motor vehicle inspection    8,678        

and maintenance program legislative oversight committee, which     8,679        

shall be comprised of six members.  The speaker of the house of    8,680        

representatives shall appoint three members of the house of        8,681        

representatives to the committee, not more than two of whom shall  8,682        

be from any one political party, and the president of the senate   8,683        

shall appoint three members of the senate to the committee, not    8,684        

more than two of whom shall be from any one political party.       8,685        

Each member shall serve at the pleasure of the member's            8,686        

appointing authority.  During the first year of any legislative    8,687        

session, the chairman CHAIRPERSON of the committee shall be a      8,688        

member from the house of representatives and the vice-chairman     8,690        

VICE-CHAIRPERSON shall be a member from the senate, as designated  8,691        

                                                          197    

                                                                 
by their appointing authorities.  During the second year of any    8,692        

legislative session, the chairman CHAIRPERSON shall be a member    8,693        

from the senate and the vice-chairman VICE-CHAIRPERSON shall be a  8,694        

member from the house of representatives, as designated by their   8,695        

appointing authorities.                                                         

      The committee shall monitor the motor vehicle inspection     8,697        

and maintenance program established under this section and, in     8,698        

doing so, shall work in complete cooperation with the Ohio         8,699        

environmental protection agency and the United States              8,700        

environmental protection agency.  The former agency shall provide  8,701        

to the committee any data, reports, and other information and      8,702        

materials requested by the committee.                              8,703        

      The director shall notify the committee whenever the         8,705        

program established under this section is required to be           8,706        

implemented in a county because of a change in that county's       8,707        

nonattainment classification under the "Clean Air Act Amendments"  8,709        

or if an enhanced program is required to be implemented in a       8,710        

county under section 3704.142 of the Revised Code.                 8,711        

      If at any time the program established under this section    8,713        

is terminated, the committee shall cease to exist on the date of   8,714        

termination.                                                       8,715        

      (M)  Implementation of the motor vehicle inspection and      8,717        

maintenance program established under this section is an           8,718        

essential state function mandated by the "Clean Air Act            8,719        

Amendments."  The director or the director's authorized            8,720        

representative may perform essential governmental duties that are  8,722        

necessary to implement the program properly within any county      8,723        

that is subject to this section, including at least the placement  8,724        

of directional traffic signs to assist citizens in finding         8,725        

inspection stations.  The director or the director's authorized    8,726        

representative need not comply with any applicable ordinances or   8,728        

resolutions of any political subdivisions if that compliance       8,729        

would prevent the director or the director's authorized            8,730        

representative from performing any such essential governmental     8,731        

                                                          198    

                                                                 
duties.                                                                         

      Sec. 3734.57.  (A)  For the purposes of paying the state's   8,740        

long-term operation costs or matching share for actions taken      8,741        

under the "Comprehensive Environmental Response, Compensation,     8,742        

and Liability Act of 1980," 94 Stat. 2767, 42 U.S.C.A. 9601, as    8,743        

amended; paying the costs of measures for proper clean-up of       8,744        

sites where polychlorinated biphenyls and substances, equipment,   8,745        

and devices containing or contaminated with polychlorinated        8,746        

biphenyls have been stored or disposed of; paying the costs of     8,747        

conducting surveys or investigations of solid waste facilities or  8,748        

other locations where it is believed that significant quantities   8,749        

of hazardous waste were disposed of and for conducting             8,750        

enforcement actions arising from the findings of such surveys or   8,751        

investigations; and paying the costs of acquiring and cleaning     8,752        

up, or providing financial assistance for cleaning up, any         8,753        

hazardous waste facility or solid waste facility containing        8,754        

significant quantities of hazardous waste, that constitutes an     8,755        

imminent and substantial threat to public health or safety or the  8,756        

environment; and, from July 1, 1995 1997, through June 30, 1997    8,758        

1999, for the purposes of paying the costs of administering and    8,759        

enforcing the laws pertaining to solid wastes, infectious wastes,  8,760        

and construction and demolition debris, including, without         8,761        

limitation, ground water evaluations related to solid wastes,      8,762        

infectious wastes, and construction and demolition debris, under   8,763        

this chapter and Chapter 3714. of the Revised Code and any rules   8,764        

adopted under them, and paying a share of the administrative       8,765        

costs of the environmental protection agency pursuant to section   8,766        

3745.014 of the Revised Code, the following fees are hereby        8,767        

levied on the disposal of solid wastes in this state:              8,768        

      (1)  One dollar per ton on and after July 1, 1993;           8,770        

      (2)  An additional seventy-five cents per ton on and after   8,773        

July 1, 1997, through June 30, 1999.                               8,774        

      The owner or operator of a solid waste disposal facility     8,776        

shall collect the fees levied under this division as a trustee     8,777        

                                                          199    

                                                                 
for the state and shall prepare and file with the director of      8,778        

environmental protection monthly returns indicating the total      8,779        

tonnage of solid wastes received for disposal at the gate of the   8,780        

facility and the total amount of the fees collected under this     8,781        

division.  Not later than thirty days after the last day of the    8,782        

month to which such a return applies, the owner or operator shall  8,783        

mail to the director the return for that month together with the   8,784        

fees collected during that month as indicated on the return.  The  8,785        

owner or operator may request an extension of not more than        8,786        

thirty days for filing the return and remitting the fees,          8,787        

provided that the owner or operator has submitted such a request   8,789        

in writing to the director together with a detailed description    8,790        

of why the extension is requested, the director has received the   8,791        

request not later than the day on which the return is required to  8,792        

be filed, and the director has approved the request.  If the fees  8,793        

are not remitted within sixty days after the last day of the       8,794        

month during which they were collected, the owner or operator      8,795        

shall pay an additional fifty per cent of the amount of the fees   8,796        

for each month that they are late.                                 8,797        

      One-half of the moneys remitted to the director under        8,799        

division (A)(1) of this section shall be credited to the           8,800        

hazardous waste facility management fund created in section        8,801        

3734.18 of the Revised Code, and one-half shall be credited to     8,802        

the hazardous waste clean-up fund created in section 3734.28 of    8,803        

the Revised Code.  The moneys remitted to the director under       8,804        

division (A)(2) of this section shall be credited to the solid     8,805        

waste fund, which is hereby created in the state treasury.  The    8,806        

environmental protection agency shall use moneys in the solid      8,807        

waste fund only to pay the costs of administering and enforcing    8,808        

the laws pertaining to solid wastes, infectious wastes, and        8,809        

construction and demolition debris, including, without             8,810        

limitation, ground water evaluations related to solid wastes,      8,811        

infectious wastes, and construction and demolition debris, under   8,812        

this chapter and Chapter 3714. of the Revised Code and rules       8,813        

                                                          200    

                                                                 
adopted under them and to pay a share of the administrative costs  8,815        

of the environmental protection agency pursuant to section         8,816        

3745.014 of the Revised Code.                                      8,817        

      The fees levied under this division and divisions (B) and    8,819        

(C) of this section are in addition to all other applicable fees   8,820        

and taxes and shall be added to any other fee or amount specified  8,821        

in a contract that is charged by the owner or operator of a solid  8,822        

waste disposal facility or to any other fee or amount that is      8,823        

specified in a contract entered into on or after March 4, 1992,    8,824        

and that is charged by a transporter of solid wastes.              8,825        

      (B)  For the purpose of preparing, revising, and             8,827        

implementing the solid waste management plan of the county or      8,828        

joint solid waste management district, including, without          8,829        

limitation, the development and implementation of solid waste      8,830        

recycling or reduction programs; providing financial assistance    8,831        

to boards of health within the district, if solid waste            8,832        

facilities are located within the district, for the enforcement    8,833        

of this chapter and rules adopted and orders and terms and         8,835        

conditions of permits, licenses, and variances issued under it,    8,836        

other than the hazardous waste provisions of this chapter and      8,837        

rules adopted and orders and terms and conditions of permits       8,838        

issued under those provisions; providing financial assistance to   8,840        

the county to defray the added costs of maintaining roads and      8,841        

other public facilities and of providing emergency and other       8,842        

public services resulting from the location and operation of a     8,843        

solid waste facility within the county under the district's                     

approved solid waste management plan; paying the costs incurred    8,844        

by boards of health for collecting and analyzing water samples     8,845        

from public or private wells on lands adjacent to solid waste      8,846        

facilities that are contained in the approved or amended plan of   8,847        

the district; paying the costs of developing and implementing a    8,848        

program for the inspection of solid wastes generated outside the   8,849        

boundaries of this state that are disposed of at solid waste       8,850        

facilities included in the district's approved solid waste         8,851        

                                                          201    

                                                                 
management plan or amended plan; providing financial assistance    8,852        

to boards of health within the district for enforcing laws         8,853        

prohibiting open dumping; providing financial assistance to local  8,854        

law enforcement agencies within the district for enforcing laws    8,855        

and ordinances prohibiting littering; providing financial          8,856        

assistance to boards of health of health districts within the      8,857        

district that are on the approved list under section 3734.08 of    8,858        

the Revised Code for the training and certification required for   8,859        

their employees responsible for solid waste enforcement by rules   8,860        

adopted under division (L) of section 3734.02 of the Revised       8,861        

Code; providing financial assistance to individual municipal       8,862        

corporations and townships within the district to defray their     8,863        

added costs of maintaining roads and other public facilities and   8,864        

of providing emergency and other public services resulting from    8,865        

the location and operation within their boundaries of a            8,866        

composting, energy or resource recovery, incineration, or          8,867        

recycling facility that either is owned by the district or is      8,868        

furnishing solid waste management facility or recycling services   8,869        

to the district pursuant to a contract or agreement with the       8,870        

board of county commissioners or directors of the district; and    8,871        

payment of any expenses that are agreed to, awarded, or ordered    8,872        

to be paid under section 3734.35 of the Revised Code and of any    8,874        

administrative costs incurred pursuant to that section, the solid  8,875        

waste management policy committee of a county or joint solid       8,876        

waste management district may levy fees upon the following                      

activities:                                                        8,877        

      (1)  The disposal at a solid waste disposal facility         8,879        

located in the district of solid wastes generated within the       8,880        

district;                                                          8,881        

      (2)  The disposal at a solid waste disposal facility within  8,883        

the district of solid wastes generated outside the boundaries of   8,884        

the district, but inside this state;                               8,885        

      (3)  The disposal at a solid waste disposal facility within  8,887        

the district of solid wastes generated outside the boundaries of   8,888        

                                                          202    

                                                                 
this state.                                                        8,889        

      If any such fees are levied prior to January 1, 1994, fees   8,891        

levied under division (B)(1) of this section always shall be       8,892        

equal to one-half of the fees levied under division (B)(2) of      8,893        

this section, and fees levied under division (B)(3) of this        8,894        

section, which shall be in addition to fees levied under division  8,895        

(B)(2) of this section, always shall be equal to fees levied       8,896        

under division (B)(1) of this section, except as otherwise         8,897        

provided in this division.  The solid waste management plan of     8,898        

the county or joint district approved under section 3734.521 or    8,899        

3734.55 of the Revised Code and any amendments to it, or the       8,900        

resolution adopted under this division, as appropriate, shall      8,901        

establish the rates of the fees levied under divisions (B)(1),     8,902        

(2), and (3) of this section, if any, and shall specify whether    8,903        

the fees are levied on the basis of tons or cubic yards as the     8,904        

unit of measurement.  Although the fees under divisions (A)(1)     8,905        

and (2) of this section are levied on the basis of tons as the     8,906        

unit of measurement, the solid waste management plan of the        8,907        

district and any amendments to it or the solid waste management    8,908        

policy committee in its resolution levying fees under this         8,909        

division may direct that the fees levied under those divisions be  8,910        

levied on the basis of cubic yards as the unit of measurement      8,911        

based upon a conversion factor of three cubic yards per ton        8,912        

generally or one cubic yard per ton for baled wastes if the fees   8,913        

under divisions (B)(1) to (3) of this section are being levied on  8,914        

the basis of cubic yards as the unit of measurement under the      8,915        

plan, amended plan, or resolution.                                 8,916        

      On and after January 1, 1994, the fee levied under division  8,918        

(B)(1) of this section shall be not less than one dollar per ton   8,919        

nor more than two dollars per ton, the fee levied under division   8,920        

(B)(2) of this section shall be not less than two dollars per ton  8,921        

nor more than four dollars per ton, and the fee levied under       8,922        

division (B)(3) of this section shall be not more than the fee     8,923        

levied under division (B)(1) of this section, except as otherwise  8,924        

                                                          203    

                                                                 
provided in this division and notwithstanding any schedule of      8,925        

those fees established in the solid waste management plan of a     8,926        

county or joint district approved under section 3734.55 of the     8,927        

Revised Code or a resolution adopted and ratified under this       8,928        

division that is in effect on that date.  If the fee that a        8,929        

district is levying under division (B)(1) of this section on that  8,930        

date under its approved plan or such a resolution is less than     8,931        

one dollar per ton, the fee shall be one dollar per ton on and     8,932        

after January 1, 1994, and if the fee that a district is so        8,933        

levying under that division exceeds two dollars per ton, the fee   8,934        

shall be two dollars per ton on and after that date.  If the fee   8,935        

that a district is so levying under division (B)(2) of this        8,936        

section is less than two dollars per ton, the fee shall be two     8,937        

dollars per ton on and after that date, and if the fee that the    8,938        

district is so levying under that division exceeds four dollars    8,939        

per ton, the fee shall be four dollars per ton on and after that   8,940        

date.  On that date, the fee levied by a district under division   8,941        

(B)(3) of this section shall be equal to the fee levied under      8,942        

division (B)(1) of this section.  Except as otherwise provided in  8,943        

this division, the fees established by the operation of this       8,944        

amendment shall remain in effect until the district's resolution   8,945        

levying fees under this division is amended or repealed in         8,946        

accordance with this division to amend or abolish the schedule of  8,947        

fees, the schedule of fees is amended or abolished in an amended   8,948        

plan of the district approved under section 3734.521 or division   8,949        

(A) or (D) of section 3734.56 of the Revised Code, or the          8,950        

schedule of fees is amended or abolished through an amendment to   8,951        

the district's plan under division (E) of section 3734.56 of the   8,952        

Revised Code; the notification of the amendment or abolishment of  8,953        

the fees has been given in accordance with this division; and      8,954        

collection of the amended fees so established commences, or        8,955        

collection of the fees ceases, in accordance with this division.   8,956        

      The solid waste management policy committee of a district    8,958        

levying fees under divisions (B)(1) to (3) of this section on      8,960        

                                                          204    

                                                                 
October 29, 1993, under its solid waste management plan approved   8,961        

under section 3734.55 of the Revised Code or a resolution adopted  8,963        

and ratified under this division that are within the ranges of     8,964        

rates prescribed by this amendment, by adoption of a resolution    8,965        

not later than December 1, 1993, and without the necessity for     8,966        

ratification of the resolution under this division, may amend      8,967        

those fees within the prescribed ranges, provided that the         8,968        

estimated revenues from the amended fees will not substantially    8,969        

exceed the estimated revenues set forth in the district's budget   8,970        

for calendar year 1994.  Not later than seven days after the       8,971        

adoption of such a resolution, the committee shall notify by       8,972        

certified mail the owner or operator of each solid waste disposal  8,973        

facility that is required to collect the fees of the adoption of   8,974        

the resolution and of the amount of the amended fees.  Collection  8,975        

of the amended fees shall take effect on the first day of the      8,976        

first month following the month in which the notification is sent  8,977        

to the owner or operator.  The fees established in such a          8,978        

resolution shall remain in effect until the district's resolution  8,979        

levying fees that was adopted and ratified under this division is  8,980        

amended or repealed, and the amendment or repeal of the            8,981        

resolution is ratified, in accordance with this division, to       8,982        

amend or abolish the fees, the schedule of fees is amended or      8,983        

abolished in an amended plan of the district approved under        8,984        

section 3734.521 or division (A) or (D) of section 3734.56 of the  8,985        

Revised Code, or the schedule of fees is amended or abolished      8,986        

through an amendment to the district's plan under division (E) of  8,987        

section 3734.56 of the Revised Code; the notification of the       8,988        

amendment or abolishment of the fees has been given in accordance  8,989        

with this division; and collection of the amended fees so          8,990        

established commences, or collection of the fees ceases, in        8,991        

accordance with this division.                                                  

      Prior to the approval of the solid waste management plan of  8,993        

the district under section 3734.55 of the Revised Code, the solid  8,994        

waste management policy committee of a district may levy fees      8,995        

                                                          205    

                                                                 
under this division by adopting a resolution establishing the      8,996        

proposed amount of the fees.  Upon adopting the resolution, the    8,997        

committee shall deliver a copy of the resolution to the board of   8,998        

county commissioners of each county forming the district and to    8,999        

the legislative authority of each municipal corporation and        9,000        

township under the jurisdiction of the district and shall prepare  9,001        

and publish the resolution and a notice of the time and location   9,002        

where a public hearing on the fees will be held.  Upon adopting    9,003        

the resolution, the committee shall deliver written notice of the  9,004        

adoption of the resolution; of the amount of the proposed fees;    9,005        

and of the date, time, and location of the public hearing to the   9,006        

director and to the fifty industrial, commercial, or               9,007        

institutional generators of solid wastes within the district that  9,008        

generate the largest quantities of solid wastes, as determined by  9,009        

the committee, and to their local trade associations.  The         9,010        

committee shall make good faith efforts to identify those          9,011        

generators within the district and their local trade               9,012        

associations, but the nonprovision of notice under this division   9,013        

to a particular generator or local trade association does not      9,014        

invalidate the proceedings under this division.  The publication   9,015        

shall occur at least thirty days before the hearing.  After the    9,016        

hearing, the committee may make such revisions to the proposed     9,017        

fees as it considers appropriate and thereafter, by resolution,    9,018        

shall adopt the revised fee schedule.  Upon adopting the revised   9,019        

fee schedule, the committee shall deliver a copy of the            9,020        

resolution doing so to the board of county commissioners of each   9,021        

county forming the district and to the legislative authority of    9,022        

each municipal corporation and township under the jurisdiction of  9,023        

the district.  Within sixty days after the delivery of a copy of   9,024        

the resolution adopting the proposed revised fees by the policy    9,025        

committee, each such board and legislative authority, by           9,026        

ordinance or resolution, shall approve or disapprove the revised   9,027        

fees and deliver a copy of the ordinance or resolution to the      9,028        

committee.  If any such board or legislative authority fails to    9,029        

                                                          206    

                                                                 
adopt and deliver to the policy committee an ordinance or          9,030        

resolution approving or disapproving the revised fees within       9,031        

sixty days after the policy committee delivered its resolution     9,032        

adopting the proposed revised fees, it shall be conclusively       9,033        

presumed that the board or legislative authority has approved the  9,034        

proposed revised fees.                                             9,035        

      In the case of a county district or a joint district formed  9,037        

by two or three counties, the committee shall declare the          9,038        

proposed revised fees to be ratified as the fee schedule of the    9,039        

district upon determining that the board of county commissioners   9,040        

of each county forming the district has approved the proposed      9,041        

revised fees and that the legislative authorities of a             9,042        

combination of municipal corporations and townships with a         9,043        

combined population within the district comprising at least sixty  9,044        

per cent of the total population of the district have approved     9,045        

the proposed revised fees, provided that in the case of a county   9,046        

district, that combination shall include the municipal             9,047        

corporation having the largest population within the boundaries    9,048        

of the district, and provided further that in the case of a joint  9,049        

district formed by two or three counties, that combination shall   9,050        

include for each county forming the joint district the municipal   9,051        

corporation having the largest population within the boundaries    9,052        

of both the county in which the municipal corporation is located   9,053        

and the joint district.  In the case of a joint district formed    9,054        

by four or more counties, the committee shall declare the          9,055        

proposed revised fees to be ratified as the fee schedule of the    9,056        

joint district upon determining that the boards of county          9,057        

commissioners of a majority of the counties forming the district   9,058        

have approved the proposed revised fees; that, in each of a        9,059        

majority of the counties forming the joint district, the proposed  9,060        

revised fees have been approved by the municipal corporation       9,061        

having the largest population within the county and the joint      9,062        

district; and that the legislative authorities of a combination    9,063        

of municipal corporations and townships with a combined            9,064        

                                                          207    

                                                                 
population within the joint district comprising at least sixty     9,065        

per cent of the total population of the joint district have        9,066        

approved the proposed revised fees.                                9,067        

      For the purposes of this division, only the population of    9,069        

the unincorporated area of a township shall be considered.  For    9,070        

the purpose of determining the largest municipal corporation       9,071        

within each county under this division, a municipal corporation    9,072        

that is located in more than one solid waste management district,  9,073        

but that is under the jurisdiction of one county or joint solid    9,074        

waste management district in accordance with division (A) of       9,075        

section 3734.52 of the Revised Code shall be considered to be      9,076        

within the boundaries of the county in which a majority of the     9,077        

population of the municipal corporation resides.                   9,078        

      The committee may amend the schedule of fees levied          9,080        

pursuant to a resolution or amended resolution adopted and         9,081        

ratified under this division by adopting a resolution              9,082        

establishing the proposed amount of the amended fees.  The         9,083        

committee may abolish the fees levied pursuant to such a           9,084        

resolution or amended resolution by adopting a resolution          9,085        

proposing to repeal them.  Upon adopting such a resolution, the    9,086        

committee shall proceed to obtain ratification of the resolution   9,087        

in accordance with this division.                                  9,088        

      Not later than fourteen days after declaring the fees or     9,090        

amended fees to be ratified under this division, the committee     9,091        

shall notify by certified mail the owner or operator of each       9,092        

solid waste disposal facility that is required to collect the      9,093        

fees of the ratification and the amount of the fees.  Collection   9,094        

of any fees or amended fees ratified on or after March 24, 1992,   9,095        

shall commence on the first day of the second month following the  9,096        

month in which notification is sent to the owner or operator.      9,097        

      Not later than fourteen days after declaring the repeal of   9,099        

the district's schedule of fees to be ratified under this          9,100        

division, the committee shall notify by certified mail the owner   9,101        

or operator of each facility that is collecting the fees of the    9,102        

                                                          208    

                                                                 
repeal.  Collection of the fees shall cease on the first day of    9,103        

the second month following the month in which notification is      9,104        

sent to the owner or operator.                                     9,105        

      Not later than fourteen days after the director issues an    9,107        

order approving a district's solid waste management plan under     9,108        

section 3734.55 of the Revised Code or amended plan under          9,109        

division (A) or (D) of section 3734.56 of the Revised Code that    9,110        

establishes or amends a schedule of fees levied by the district,   9,111        

or the ratification of an amendment to the district's approved     9,112        

plan or amended plan under division (E) of section 3734.56 of the  9,113        

Revised Code that establishes or amends a schedule of fees, as     9,114        

appropriate, the committee shall notify by certified mail the      9,115        

owner or operator of each solid waste disposal facility that is    9,116        

required to collect the fees of the approval of the plan or        9,117        

amended plan, or the amendment to the plan, as appropriate, and    9,118        

the amount of the fees or amended fees.  In the case of an         9,119        

initial or amended plan approved under section 3734.521 of the     9,120        

Revised Code in connection with a change in district composition,  9,121        

other than one involving the withdrawal of a county from a joint   9,122        

district, that establishes or amends a schedule of fees levied     9,123        

under divisions (B)(1) to (3) of this section by a district        9,124        

resulting from the change, the committee, within fourteen days     9,125        

after the change takes effect pursuant to division (G) of that     9,126        

section, shall notify by certified mail the owner or operator of   9,127        

each solid waste disposal facility that is required to collect     9,128        

the fees that the change has taken effect and of the amount of     9,129        

the fees or amended fees.  Collection of any fees set forth in a   9,130        

plan or amended plan approved by the director on or after April    9,131        

16, 1993, or an amendment of a plan or amended plan under          9,132        

division (E) of section 3734.56 of the Revised Code that is        9,133        

ratified on or after April 16, 1993, shall commence on the first   9,134        

day of the second month following the month in which notification  9,135        

is sent to the owner or operator.                                  9,136        

      Not later than fourteen days after the director issues an    9,138        

                                                          209    

                                                                 
order approving a district's plan under section 3734.55 of the     9,139        

Revised Code or amended plan under division (A) or (D) of section  9,140        

3734.56 of the Revised Code that abolishes the schedule of fees    9,141        

levied under divisions (B)(1) to (3) of this section, or an        9,142        

amendment to the district's approved plan or amended plan          9,143        

abolishing the schedule of fees is ratified pursuant to division   9,144        

(E) of section 3734.56 of the Revised Code, as appropriate, the    9,145        

committee shall notify by certified mail the owner or operator of  9,146        

each facility that is collecting the fees of the approval of the   9,147        

plan or amended plan, or the amendment of the plan or amended      9,148        

plan, as appropriate, and the abolishment of the fees.  In the     9,149        

case of an initial or amended plan approved under section          9,150        

3734.521 of the Revised Code in connection with a change in        9,151        

district composition, other than one involving the withdrawal of   9,152        

a county from a joint district, that abolishes the schedule of     9,153        

fees levied under divisions (B)(1) to (3) of this section by a     9,154        

district resulting from the change, the committee, within          9,155        

fourteen days after the change takes effect pursuant to division   9,156        

(G) of that section, shall notify by certified mail the owner or   9,157        

operator of each solid waste disposal facility that is required    9,158        

to collect the fees that the change has taken effect and of the    9,159        

abolishment of the fees.  Collection of the fees shall cease on    9,160        

the first day of the second month following the month in which     9,161        

notification is sent to the owner or operator.                     9,162        

      Except as otherwise provided in this division, if the        9,164        

schedule of fees that a district is levying under divisions        9,165        

(B)(1) to (3) of this section pursuant to a resolution or amended  9,166        

resolution adopted and ratified under this division, the solid     9,167        

waste management plan of the district approved under section       9,168        

3734.55 of the Revised Code, an amended plan approved under        9,169        

division (A) or (D) of section 3734.56 of the Revised Code, or an  9,170        

amendment to the district's approved plan or amended plan under    9,171        

division (E) of section 3734.56 of the Revised Code, is amended    9,172        

by the adoption and ratification of an amendment to the            9,173        

                                                          210    

                                                                 
resolution or amended resolution or an amendment of the            9,174        

district's approved plan or amended plan, the fees in effect       9,175        

immediately prior to the approval of the plan or the amendment of  9,176        

the resolution, amended resolution, plan, or amended plan, as      9,177        

appropriate, shall continue to be collected until collection of    9,178        

the amended fees commences pursuant to this division.              9,179        

      If, in the case of a change in district composition          9,181        

involving the withdrawal of a county from a joint district, the    9,182        

director completes the actions required under division (G)(1) or   9,183        

(3) of section 3734.521 of the Revised Code, as appropriate,       9,184        

forty-five days or more before the beginning of a calendar year,   9,185        

the policy committee of each of the districts resulting from the   9,186        

change that obtained the director's approval of an initial or      9,187        

amended plan in connection with the change, within fourteen days   9,188        

after the director's completion of the required actions, shall     9,189        

notify by certified mail the owner or operator of each solid       9,190        

waste disposal facility that is required to collect the            9,191        

district's fees that the change is to take effect on the first     9,192        

day of January immediately following the issuance of the notice    9,193        

and of the amount of the fees or amended fees levied under         9,194        

divisions (B)(1) to (3) of this section pursuant to the            9,195        

district's initial or amended pan as so approved or, if            9,196        

appropriate, the abolishment of the district's fees by that        9,197        

initial or amended plan.  Collection of any fees set forth in      9,198        

such a plan or amended plan shall commence on the first day of     9,199        

January immediately following the issuance of the notice.  If      9,200        

such an initial or amended plan abolishes a schedule of fees,      9,201        

collection of the fees shall cease on that first day of January.   9,202        

      If, in the case of a change in district composition          9,204        

involving the withdrawal of a county from a joint district, the    9,205        

director completes the actions required under division (G)(1) or   9,206        

(3) of section 3734.521 of the Revised Code, as appropriate, less  9,207        

than forty-five days before the beginning of a calendar year, the  9,208        

director, on behalf of each of the districts resulting from the    9,209        

                                                          211    

                                                                 
change that obtained the director's approval of an initial or      9,210        

amended plan in connection with the change proceedings, shall      9,211        

notify by certified mail the owner or operator of each solid       9,212        

waste disposal facility that is required to collect the            9,213        

district's fees that the change is to take effect on the first     9,214        

day of January immediately following the mailing of the notice     9,215        

and of the amount of the fees or amended fees levied under         9,216        

divisions (B)(1) to (3) of this section pursuant to the            9,217        

district's initial or amended plan as so approved or, if           9,218        

appropriate, the abolishment of the district's fees by that        9,219        

initial or amended plan.  Collection of any fees set forth in      9,220        

such a plan or amended plan shall commence on the first day of     9,221        

the second month following the month in which notification is      9,222        

sent to the owner or operator.  If such an initial or amended      9,223        

plan abolishes a schedule of fees, collection of the fees shall    9,224        

cease on the first day of the second month following the month in  9,225        

which notification is sent to the owner or operator.               9,226        

      In the case of a change in district composition, the         9,228        

schedule of fees that the former districts that existed prior to   9,229        

the change were levying under divisions (B)(1) to (3) of this      9,230        

section pursuant to a resolution or amended resolution adopted     9,231        

and ratified under this division, the solid waste management plan  9,232        

of a former district approved under section 3734.521 or 3734.55    9,233        

of the Revised Code, an amended plan approved under section        9,234        

3734.521 or division (A) or (D) of section 3734.56 of the Revised  9,235        

Code, or an amendment to a former district's approved plan or      9,236        

amended plan under division (E) of section 3734.56 of the Revised  9,237        

Code, and that were in effect on the date that the director        9,238        

completed the actions required under division (G)(1) or (3) of     9,239        

section 3734.521 of the Revised Code shall continue to be          9,240        

collected until the collection of the fees or amended fees of the  9,241        

districts resulting from the change is required to commence, or    9,242        

if an initial or amended plan of a resulting district abolishes a  9,243        

schedule of fees, collection of the fees is required to cease,     9,244        

                                                          212    

                                                                 
under this division.  Moneys so received from the collection of    9,245        

the fees of the former districts shall be divided among the        9,246        

resulting districts in accordance with division (B) of section     9,247        

343.012 of the Revised Code and the agreements entered into under  9,248        

division (B) of section 343.01 of the Revised Code to establish    9,249        

the former and resulting districts and any amendments to those     9,250        

agreements.                                                        9,251        

      For the purposes of the provisions of division (B) of this   9,253        

section establishing the times when newly established or amended   9,254        

fees levied by a district are required to commence and the         9,255        

collection of fees that have been amended or abolished is          9,256        

required to cease, "fees" or "schedule of fees" includes, in       9,257        

addition to fees levied under divisions (B)(1) to (3) of this      9,258        

section, those levied under section 3734.573 or 3734.574 of the    9,259        

Revised Code.                                                      9,260        

      (C)  For the purposes of defraying the added costs to a      9,262        

municipal corporation or township of maintaining roads and other   9,263        

public facilities and of providing emergency and other public      9,264        

services, and compensating a municipal corporation or township     9,265        

for reductions in real property tax revenues due to reductions in  9,266        

real property valuations resulting from the location and           9,267        

operation of a solid waste disposal facility within the municipal  9,268        

corporation or township, a municipal corporation or township in    9,269        

which such a solid waste disposal facility is located may levy a   9,270        

fee of not more than twenty-five cents per ton on the disposal of  9,271        

solid wastes at a solid waste disposal facility located within     9,272        

the boundaries of the municipal corporation or township            9,273        

regardless of where the wastes were generated.                     9,274        

      The legislative authority of a municipal corporation or      9,276        

township may levy fees under this division by enacting an          9,277        

ordinance or adopting a resolution establishing the amount of the  9,278        

fees.  Upon so doing the legislative authority shall mail a        9,279        

certified copy of the ordinance or resolution to the board of      9,280        

county commissioners or directors of the county or joint solid     9,281        

                                                          213    

                                                                 
waste management district in which the municipal corporation or    9,282        

township is located or, if a regional solid waste management       9,283        

authority has been formed under section 343.011 of the Revised     9,284        

Code, to the board of trustees of that regional authority, the     9,285        

owner or operator of each solid waste disposal facility in the     9,286        

municipal corporation or township that is required to collect the  9,287        

fee by the ordinance or resolution, and the director of            9,288        

environmental protection.  Although the fees levied under this     9,289        

division are levied on the basis of tons as the unit of            9,290        

measurement, the legislative authority, in its ordinance or        9,291        

resolution levying the fees under this division, may direct that   9,292        

the fees be levied on the basis of cubic yards as the unit of      9,293        

measurement based upon a conversion factor of three cubic yards    9,294        

per ton generally or one cubic yard per ton for baled wastes.      9,295        

      Not later than five days after enacting an ordinance or      9,297        

adopting a resolution under this division, the legislative         9,298        

authority shall so notify by certified mail the owner or operator  9,299        

of each solid waste disposal facility that is required to collect  9,300        

the fee.  Collection of any fee levied on or after March 24,       9,301        

1992, shall commence on the first day of the second month          9,302        

following the month in which notification is sent to the owner or  9,303        

operator.                                                          9,304        

      (D)(1)  The fees levied under divisions (A), (B), and (C)    9,306        

of this section do not apply to the disposal of solid wastes       9,308        

that:                                                                           

      (a)  Are disposed of at a facility owned by the generator    9,310        

of the wastes when the solid waste facility exclusively disposes   9,311        

of solid wastes generated at one or more premises owned by the     9,312        

generator regardless of whether the facility is located on a       9,313        

premises where the wastes are generated;                           9,314        

      (b)  Are disposed of at facilities that exclusively dispose  9,316        

of wastes that are generated from the combustion of coal, or from  9,317        

the combustion of primarily coal in combination with scrap tires,  9,318        

that is not combined in any way with garbage at one or more        9,319        

                                                          214    

                                                                 
premises owned by the generator.                                   9,320        

      (2)  Except as provided in section 3734.571 of the Revised   9,322        

Code, any fees levied under division (B)(1) of this section apply  9,323        

to solid wastes originating outside the boundaries of a county or  9,324        

joint district that are covered by an agreement for the joint use  9,325        

of solid waste facilities entered into under section 343.02 of     9,326        

the Revised Code by the board of county commissioners or board of  9,327        

directors of the county or joint district where the wastes are     9,328        

generated and disposed of.                                         9,329        

      (3)  When solid wastes, other than solid wastes that         9,331        

consist of scrap tires, are burned in a disposal facility that is  9,332        

an incinerator or energy recovery facility, the fees levied under  9,333        

divisions (A), (B), and (C) of this section shall be levied upon   9,335        

the disposal of the fly ash and bottom ash remaining after         9,336        

burning of the solid wastes and shall be collected by the owner    9,337        

or operator of the sanitary landfill where the ash is disposed     9,338        

of.                                                                             

      (4)  When solid wastes are delivered to a solid waste        9,340        

transfer facility, the fees levied under divisions (A), (B), and   9,341        

(C) of this section shall be levied upon the disposal of solid     9,343        

wastes transported off the premises of the transfer facility for   9,344        

disposal and shall be collected by the owner or operator of the    9,345        

solid waste disposal facility where the wastes are disposed of.    9,346        

      (5)  The fees levied under divisions (A), (B), and (C) of    9,348        

this section do not apply to sewage sludge that is generated by a  9,349        

waste water treatment facility holding a national pollutant        9,350        

discharge elimination system permit and that is disposed of        9,351        

through incineration, land application, or composting or at        9,352        

another resource recovery or disposal facility that is not a       9,353        

landfill.                                                          9,354        

      (6)  The fees levied under division DIVISIONS (A), (B), and  9,356        

(C) of this section do not apply to solid wastes delivered to a    9,358        

solid waste composting facility for processing.  When any          9,359        

unprocessed solid waste or compost product is transported off the  9,360        

                                                          215    

                                                                 
premises of a composting facility and disposed of at a landfill,   9,361        

the fees levied under divisions (A), (B), and (C) of this section  9,362        

shall be collected by the owner or operator of the landfill where  9,363        

the unprocessed waste or compost product is disposed of.           9,364        

      (7)  When solid wastes that consist of scrap tires are       9,366        

processed at a scrap tire recovery facility, the fees levied       9,367        

under divisions (A), (B), and (C) of this section shall be levied  9,369        

upon the disposal of the fly ash and bottom ash or other solid     9,370        

wastes remaining after the processing of the scrap tires and       9,371        

shall be collected by the owner or operator of the solid waste     9,372        

disposal facility where the ash or other solid wastes are          9,373        

disposed of.                                                                    

      (E)  The fees levied under divisions (B) and (C) of this     9,376        

section shall be collected by the owner or operator of the solid   9,377        

waste disposal facility where the wastes are disposed of as a      9,378        

trustee for the county or joint district and municipal                          

corporation or township where the wastes are disposed of.  Moneys  9,379        

from the fees levied under division (B) of this section shall be   9,381        

forwarded to the board of county commissioners or board of         9,382        

directors of the district in accordance with rules adopted under   9,383        

division (H) of this section.  Moneys from the fees levied under   9,384        

division (C) of this section shall be forwarded to the treasurer   9,385        

or such other officer of the municipal corporation as, by virtue   9,386        

of the charter, has the duties of the treasurer or to the clerk    9,387        

of the township, as appropriate, in accordance with those rules.   9,388        

      (F)  Moneys received by the treasurer or such other officer  9,390        

of the municipal corporation under division (E) of this section    9,391        

shall be paid into the general fund of the municipal corporation.  9,392        

Moneys received by the clerk of the township under that division   9,393        

shall be paid into the general fund of the township.  The          9,394        

treasurer or such other officer of the municipal corporation or    9,395        

the clerk, as appropriate, shall maintain separate records of the  9,396        

moneys received from the fees levied under division (C) of this    9,397        

section.                                                           9,398        

                                                          216    

                                                                 
      (G)  Moneys received by the board of county commissioners    9,400        

or board of directors under division (E) of this section or        9,401        

section 3734.571, 3734.572, 3734.573, or 3734.574 of the Revised   9,402        

Code shall be paid to the county treasurer, or other official      9,403        

acting in a similar capacity under a county charter, in a county   9,404        

district or to the county treasurer or other official designated   9,405        

by the board of directors in a joint district and kept in a        9,406        

separate and distinct fund to the credit of the district.  If a    9,407        

regional solid waste management authority has been formed under    9,408        

section 343.011 of the Revised Code, moneys received by the board  9,409        

of trustees of that regional authority under division (E) of this  9,410        

section shall be kept by the board in a separate and distinct      9,411        

fund to the credit of the district.  Moneys in the special fund    9,412        

of the county or joint district arising from the fees levied       9,413        

under division (B) of this section and the fee levied under        9,415        

division (A) of section 3734.573 of the Revised Code shall be      9,416        

expended by the board of county commissioners or directors of the  9,417        

district in accordance with the district's solid waste management  9,418        

plan or amended plan approved under section 3734.521, 3734.55, or  9,419        

3734.56 of the Revised Code exclusively for the following          9,420        

purposes:                                                                       

      (1)  Preparation of the solid waste management plan of the   9,422        

district under section 3734.54 of the Revised Code, monitoring     9,423        

implementation of the plan, and conducting the periodic review     9,424        

and amendment of the plan required by section 3734.56 of the       9,425        

Revised Code by the solid waste management policy committee;       9,426        

      (2)  Implementation of the approved solid waste management   9,428        

plan or amended plan of the district, including, without           9,429        

limitation, the development and implementation of solid waste      9,430        

recycling or reduction programs;                                   9,431        

      (3)  Providing financial assistance to boards of health      9,433        

within the district, if solid waste facilities are located within  9,434        

the district, for enforcement of this chapter and rules, orders,   9,435        

and terms and conditions of permits, licenses, and variances       9,437        

                                                          217    

                                                                 
adopted or issued under it, other than the hazardous waste         9,438        

provisions of this chapter and rules adopted and orders and terms  9,439        

and conditions of permits issued under those provisions;           9,441        

      (4)  Providing financial assistance to each county within    9,443        

the district to defray the added costs of maintaining roads and    9,444        

other public facilities and of providing emergency and other       9,445        

public services resulting from the location and operation of a     9,446        

solid waste facility within the county under the district's        9,447        

approved solid waste management plan or amended plan;              9,448        

      (5)  Pursuant to contracts entered into with boards of       9,450        

health within the district, if solid waste facilities contained    9,451        

in the district's approved plan or amended plan are located        9,452        

within the district, for paying the costs incurred by those        9,453        

boards of health for collecting and analyzing samples from public  9,454        

or private water wells on lands adjacent to those facilities;      9,455        

      (6)  Developing and implementing a program for the           9,457        

inspection of solid wastes generated outside the boundaries of     9,458        

this state that are disposed of at solid waste facilities          9,459        

included in the district's approved solid waste management plan    9,460        

or amended plan;                                                   9,461        

      (7)  Providing financial assistance to boards of health      9,463        

within the district for the enforcement of section 3734.03 of the  9,464        

Revised Code or to local law enforcement agencies having           9,465        

jurisdiction within the district for enforcing anti-littering      9,466        

laws and ordinances;                                               9,467        

      (8)  Providing financial assistance to boards of health of   9,469        

health districts within the district that are on the approved      9,470        

list under section 3734.08 of the Revised Code to defray the       9,471        

costs to the health districts for the participation of their       9,472        

employees responsible for enforcement of the solid waste           9,473        

provisions of this chapter and rules adopted and orders and terms  9,474        

and conditions of permits, licenses, and variances issued under    9,475        

those provisions in the training and certification program as      9,476        

required by rules adopted under division (L) of section 3734.02    9,477        

                                                          218    

                                                                 
of the Revised Code;                                               9,478        

      (9)  Providing financial assistance to individual municipal  9,480        

corporations and townships within the district to defray their     9,481        

added costs of maintaining roads and other public facilities and   9,482        

of providing emergency and other public services resulting from    9,483        

the location and operation within their boundaries of a            9,484        

composting, energy or resource recovery, incineration, or          9,485        

recycling facility that either is owned by the district or is      9,486        

furnishing solid waste management facility or recycling services   9,487        

to the district pursuant to a contract or agreement with the       9,488        

board of county commissioners or directors of the district;        9,489        

      (10)  Payment of any expenses that are agreed to, awarded,   9,491        

or ordered to be paid under section 3734.35 of the Revised Code    9,492        

and of any administrative costs incurred pursuant to that          9,493        

section.  In the case of a joint solid waste management district,  9,494        

if the board of county commissioners of one of the counties in     9,495        

the district is negotiating on behalf of affected communities, as               

defined in that section, in that county, the board shall obtain    9,496        

the approval of the board of directors of the district in order    9,497        

to expend moneys for administrative costs incurred.                9,498        

      Prior to the approval of the district's solid waste          9,500        

management plan under section 3734.55 of the Revised Code, moneys  9,501        

in the special fund of the district arising from such THE fees     9,502        

shall be expended for such THOSE purposes in the manner            9,504        

prescribed by the solid waste management policy committee by       9,506        

resolution.                                                                     

      Notwithstanding division (G)(6) of this section as it        9,509        

existed prior to October 29, 1993, or any provision in a                        

district's solid waste management plan prepared in accordance      9,512        

with division (B)(2)(e) of section 3734.53 of the Revised Code as  9,513        

it existed prior to that date, any moneys arising from the fees    9,514        

levied under division (B)(3) of this section prior to January 1,   9,515        

1994, may be expended for any of the purposes authorized in        9,516        

divisions (G)(1) to (10) of this section.                          9,517        

                                                          219    

                                                                 
      (H)  The director of environmental protection shall adopt    9,519        

rules in accordance with Chapter 119. of the Revised Code          9,520        

prescribing procedures for collecting and forwarding the fees      9,521        

levied under divisions (B) and (C) of this section to the boards   9,522        

of county commissioners or directors of county or joint solid      9,523        

waste management districts and to the treasurers or other          9,524        

officers of municipal corporations or to the clerks of townships.  9,525        

The rules also shall prescribe the dates for forwarding the fees   9,526        

to the boards and officials and may prescribe any other            9,527        

requirements the director considers necessary or appropriate to    9,528        

implement and administer divisions (A), (B), and (C) of this       9,529        

section.  Collection of the fees levied under division (A)(1) of   9,530        

this section shall commence on July 1, 1993.  Collection of the    9,531        

fees levied under division (A)(2) of this section shall commence   9,533        

on January 1, 1994.                                                9,534        

      Sec. 3734.82.  (A)  The annual fee for a scrap tire          9,543        

recovery facility license issued under section 3734.81 of the      9,544        

Revised Code shall be in accordance with the following schedule:   9,545        

     Daily Design Input                     Annual License         9,547        

      Capacity (Tons)                            Fee               9,548        

       1 or less                              $   100              9,549        

       2 to 25                                    500              9,550        

      26 to 50                                  1,000              9,551        

      51 to 100                                 1,500              9,552        

     101 to 200                                 2,500              9,553        

     201 to 500                                 3,500              9,554        

     501 or more                                5,500              9,555        

      For the purpose of determining the applicable license fee    9,558        

under this division, the daily design input capacity shall be the  9,559        

quantity of scrap tires the facility is designed to process daily  9,560        

as set forth in the registration certificate or permit for the     9,561        

facility, and any modifications to the permit, if applicable,      9,562        

issued under section 3734.78 of the Revised Code.                  9,563        

      (B)  The annual fee for a scrap tire monocell or monofill    9,565        

                                                          220    

                                                                 
facility license shall be in accordance with the following         9,566        

schedule:                                                          9,567        

      Authorized Maximum                    Annual License         9,569        

     Daily Waste Receipt                         Fee               9,570        

           (Tons)                                                  9,571        

      100 or less                             $ 5,000              9,572        

      101 to 200                               12,500              9,573        

      201 to 500                               30,000              9,574        

      501 or more                              60,000              9,575        

      For the purpose of determining the applicable license fee    9,578        

under this division, the authorized maximum daily waste receipt    9,579        

shall be the maximum amount of scrap tires the facility is         9,580        

authorized to receive daily that is established in the permit for  9,581        

the facility, and any modification to that permit, issued under    9,582        

section 3734.77 of the Revised Code.                               9,583        

      (C)(1)  Except as otherwise provided in division (C)(2) of   9,585        

this section, the annual fee for a scrap tire storage facility     9,586        

license shall equal one thousand dollars times the number of       9,587        

acres on which scrap tires are to be stored at the facility        9,588        

during the license year, as set forth on the application for the   9,589        

annual license, except that the total annual license fee for any   9,590        

such facility shall not exceed three thousand dollars.             9,591        

      (2)  The annual fee for a scrap tire storage facility        9,593        

license for a storage facility that is owned or operated by a      9,594        

motor vehicle salvage dealer licensed under Chapter 4738. of the   9,595        

Revised Code is one hundred dollars.                               9,596        

      (D)(1)  Except as otherwise provided in division (D)(2) of   9,598        

this section, the annual fee for a scrap tire collection facility  9,599        

license is two hundred dollars.                                    9,600        

      (2)  The annual fee for a scrap tire collection facility     9,602        

license for a collection facility that is owned or operated by a   9,603        

motor vehicle salvage dealer licensed under Chapter 4738. of the   9,604        

Revised Code is fifty dollars.                                     9,605        

      (E)  Except as otherwise provided in divisions (C)(2) and    9,607        

                                                          221    

                                                                 
(D)(2) of this section, the same fees apply to private operators   9,608        

and to the state and its political subdivisions and shall be paid  9,609        

within thirty days after the issuance of a license.  The fees      9,610        

include the cost of licensing, all inspections, and other costs    9,611        

associated with the administration of the scrap tire provisions    9,612        

of this chapter and rules adopted under them.  Each license shall  9,613        

specify that it is conditioned upon payment of the applicable fee  9,614        

to the board of health or the director of environmental            9,615        

protection, as appropriate, within thirty days after the issuance  9,617        

of the license.                                                                 

      (F)  The board of health shall retain fifteen thousand       9,619        

dollars of each license fee collected by the board under division  9,620        

(B) of this section, or the entire amount of any such fee that is  9,621        

less than fifteen thousand dollars, and the entire amount of each  9,622        

license fee collected by the board under divisions (A), (C), and   9,623        

(D) of this section.  The moneys retained shall be paid into a     9,624        

special fund, which is hereby created in each health district,     9,625        

and used solely to administer and enforce the scrap tire           9,626        

provisions of this chapter and rules adopted under them.  The      9,627        

remainder, if any, of each license fee collected by the board      9,628        

under division (B) of this section shall be transmitted to the     9,629        

director within forty-five days after receipt of the fee.          9,631        

      (G)  The director shall transmit the moneys received by the  9,633        

director from license fees collected under division (B) of this    9,634        

section to the treasurer of state to be credited to the scrap      9,635        

tire management fund, which is hereby created in the state         9,636        

treasury.  The fund shall consist of all federal moneys received   9,637        

by the environmental protection agency for the scrap tire          9,638        

management program; all grants, gifts, and contributions made to   9,639        

the director for that program; and all other moneys that may be    9,640        

provided by law for that program.  The director shall use moneys   9,641        

in the fund as follows:                                            9,642        

      (1)  Expend not more than seven hundred fifty thousand       9,644        

dollars during each fiscal year to implement, administer, and      9,646        

                                                          222    

                                                                 
enforce the scrap tire provisions of this chapter and rules        9,647        

adopted under them;                                                9,648        

      (2)  For fiscal years 1998 and 1999, grant not more than     9,652        

one hundred fifty thousand dollars during each fiscal year to the  9,653        

polymer institute at the university of Akron for the purpose of    9,654        

expediting research concerning and evaluation of alternative       9,655        

methods of recycling scrap tires.  The institute shall report to   9,656        

the director annually concerning research programs under review,   9,657        

and the results of scrap tire recycling experiments conducted, by  9,658        

or in conjunction with the institute. The university shall report  9,659        

to the director biennially concerning the expenditures of moneys   9,660        

received by the institute under division (G)(2) of this section.   9,661        

      (3)  During each of fiscal years 1998, 1999, and 2000,       9,664        

request the director of budget and management to, and the          9,666        

director of budget and management shall, transfer one million      9,667        

dollars to the facilities establishment fund created in section    9,668        

166.03 of the Revised Code for the purposes specified in that      9,669        

section;                                                                        

      (4)  Except as otherwise provided in division (H)(2) of      9,673        

this section, expend not more than three million dollars during    9,675        

each of fiscal years 1998, 1999, and 2000 to conduct removal       9,677        

actions under section 3734.85 of the Revised Code.  Prior to       9,678        

using any moneys in the fund for that purpose in a fiscal year,    9,679        

the director shall request the approval of the controlling board   9,680        

for that use of the moneys.  The request shall be accompanied by   9,681        

a plan describing the removal actions to be conducted during the   9,682        

fiscal year and an estimate of the costs of conducting them.  The  9,683        

controlling board shall approve the plan only if the board finds   9,684        

that the proposed removal actions are in accordance with the       9,685        

priorities set forth in division (B) of section 3734.85 of the     9,686        

Revised Code and that the costs of conducting them are             9,687        

reasonable.                                                        9,688        

      (5)  Annually transfer to the central support indirect fund  9,690        

created in section 3745.014 of the Revised Code an amount equal    9,692        

                                                          223    

                                                                 
to not more than twelve per cent of each fiscal year's             9,693        

appropriation to the scrap tire management fund.                                

      (H)(1)  If, during fiscal year 1997, 1998, 1999, or 2000,    9,695        

more than three million five hundred thousand dollars are          9,697        

credited to the scrap tire management fund, the director, at the   9,698        

conclusion of the fiscal year, shall request the director of       9,700        

budget and management to, and the director of budget and           9,701        

management shall, transfer to the facilities establishment fund    9,703        

one-half of the moneys credited to the scrap tire management fund  9,704        

in excess of that amount.                                          9,705        

      (2)  In each of fiscal years 1998, 1999, and 2000, if more   9,708        

than three million five hundred thousand dollars are credited to   9,709        

the scrap tire management fund during the preceding fiscal year,   9,710        

the director, in addition to the amount authorized under division  9,711        

(G)(4) of this section, shall expend during the current fiscal     9,712        

year one-half of that excess amount to conduct removal operations  9,713        

under section 3734.85 of the Revised Code.                         9,714        

      (I)  AFTER THE ACTIONS IN DIVISIONS (G)(1) TO (4) AND (H)    9,717        

OF THIS SECTION ARE COMPLETED DURING EACH OF FISCAL YEARS 1998,                 

1999, AND 2000, THE DIRECTOR MAY EXPEND UP TO THE BALANCE          9,718        

REMAINING FROM PRIOR FISCAL YEARS IN THE SCRAP TIRE MANAGEMENT     9,719        

FUND TO CONDUCT REMOVAL ACTIONS UNDER SECTION 3734.85 OF THE       9,720        

REVISED CODE.  PRIOR TO USING ANY MONEYS IN THE FUND FOR THAT                   

PURPOSE IN A FISCAL YEAR, THE DIRECTOR SHALL REQUEST THE APPROVAL  9,721        

OF THE CONTROLLING BOARD FOR THAT USE OF THE MONEYS.  THE REQUEST  9,722        

SHALL BE ACCOMPANIED BY A PLAN DESCRIBING THE REMOVAL ACTIONS TO   9,723        

BE CONDUCTED DURING THE FISCAL YEAR AND AN ESTIMATE OF THE COSTS   9,724        

OF CONDUCTING THEM.  THE CONTROLLING BOARD SHALL APPROVE THE PLAN  9,725        

ONLY IF THE BOARD FINDS THAT THE PROPOSED REMOVAL ACTIONS ARE IN   9,726        

ACCORDANCE WITH THE PRIORITIES SET FORTH IN DIVISION (B) OF        9,727        

SECTION 3734.85 OF THE REVISED CODE AND THAT THE COSTS OF                       

CONDUCTING THEM ARE REASONABLE.                                    9,728        

      Sec. 4123.40.  During the six months immediately preceding   9,737        

the first day of each regular session of the general assembly,     9,738        

                                                          224    

                                                                 
the office of budget and management shall communicate to the       9,739        

bureau THE ADMINISTRATOR of workers' compensation an SHALL         9,741        

estimate of the gross payroll of all state employers for the       9,742        

succeeding biennium or fiscal year.                                9,743        

      Upon receipt thereof the THE administrator of workers'       9,745        

compensation shall determine and certify for the office of budget  9,746        

and management that rate or rates which when applied to the gross  9,747        

payroll estimate will produce an amount equal to the estimated     9,748        

cost of awards OR PAYMENTS to be made during the like fiscal       9,749        

period, as determined by the administrator.                        9,750        

      The rate certified shall be applied and made a part of the   9,752        

gross payroll calculation for the period for which the foregoing   9,753        

estimates have been made, in conformity with section 125.21 of     9,754        

the Revised Code.  The amounts collected shall be remitted to the  9,755        

bureau as provided in section 125.21 of the Revised Code.          9,756        

      If the amounts remitted to the bureau for a fiscal period    9,758        

are greater or less than actual awards OR PAYMENTS for the like    9,759        

period by reason of an error in the prior estimates of gross       9,761        

payroll or awards OR PAYMENTS, the overage or shortage shall be    9,762        

included by the administrator in determining the rate for the      9,763        

next succeeding fiscal period.                                     9,764        

      In fixing the amount of contribution to be made by the       9,766        

state and each of its departments, agencies, and                   9,767        

instrumentalities, the administrator shall classify departments,   9,768        

agencies, and instrumentalities into such groups as will           9,769        

equitably determine the contributions in accordance with their     9,770        

individual accident experience so that the state and its           9,771        

departments, agencies, and instrumentalities contribute an amount  9,772        

sufficient to meet individual obligations and maintain a solvent   9,773        

public insurance fund.                                             9,774        

      Moneys collected from state employers shall not be used to   9,776        

pay compensation or other benefits attributable to service of      9,777        

persons as employees of counties or taxing districts therein, nor  9,778        

shall moneys collected from counties and taxing districts therein  9,779        

                                                          225    

                                                                 
be used to pay compensation or other benefits attributable to      9,780        

service of persons as employees of the state.                      9,781        

      Sec. 4701.10.  (A)  Permits to practice public accounting    9,791        

shall be issued by the accountancy board to holders of the         9,792        

certificate of certified public accountant issued under section    9,793        

4701.06 or 4701.061 of the Revised Code and to persons registered  9,794        

under sections 4701.07 and 4701.09 of the Revised Code.  Subject   9,795        

to division (D)(1) of this section, there shall be a triennial     9,796        

permit fee in an amount to be determined by the board not to       9,797        

exceed one hundred fifty dollars.  All permits shall expire on     9,798        

the last day of December of the year assigned by the board and,    9,799        

subject to division (D)(1) of this section, shall be renewed       9,800        

triennially for a period of three years by certificate holders     9,801        

and registrants in good standing upon payment of a triennial       9,802        

renewal fee not to exceed one hundred fifty dollars.  For the                   

purpose of implementing this section and enforcing section         9,804        

4701.11 of the Revised Code, the board may issue a permit for      9,805        

less than three years' duration.  A prorated fee shall be                       

determined by the board for such permit.  Renewal of permits       9,806        

shall be according to the standard renewal procedure of sections   9,807        

4745.01 to 4745.03 of the Revised Code.  Failure of any            9,808        

certificate holder or registrant to apply for a triennial permit   9,809        

to practice within three years from the expiration date of the     9,810        

permit to practice last obtained or renewed, or three years from   9,811        

the date upon which the certificate holder or registrant was       9,812        

granted his A certificate or registration, shall result in         9,813        

suspension of such certificate or registration unless the board    9,814        

determines such failure to have been due to excusable neglect.     9,815        

In such case the renewal fee or the fee for the issuance of the    9,816        

original permit, as the case may be, shall be such amount as the   9,817        

board shall determine, but not in excess of fifty dollars plus     9,818        

the fee for each triennial period or part of a period the          9,819        

certificate holder or registrant did not have a permit.            9,820        

      (B)  All certificate holders and registrants who are not in  9,822        

                                                          226    

                                                                 
the practice of public accounting in this state shall register     9,823        

with the board every three years at a fee, not to exceed           9,824        

fifty-five dollars, established by the board.  Such persons shall  9,825        

not convey to the general public that they are actively engaged    9,826        

in the practice of public accounting in this state.                9,827        

      (C)  The board shall suspend the certificate or              9,829        

registration of any person failing to obtain a permit in           9,830        

accordance with this section except that the board may by rule     9,831        

exempt persons from the requirement of holding a permit for such   9,832        

reasons as retirement, health reasons, military service, foreign   9,833        

residency, or other just cause.                                    9,834        

      (D)(1)  On and after January 1, 1995, the board shall, by    9,836        

rule adopted in accordance with Chapter 119. of the Revised Code,  9,837        

increase the triennial permit and renewal fee imposed pursuant to  9,838        

this section by at least fifteen dollars but no more than thirty   9,839        

dollars.                                                           9,840        

      (2)  Beginning with the first quarter of 1995 and each       9,842        

quarter thereafter, the board, for the purpose provided in         9,843        

section 4743.05 of the Revised Code, shall certify to the          9,844        

director of budget and management the number of triennial permits  9,845        

renewed under this chapter during the preceding quarter and the    9,846        

amount equal to that number times the amount by which the          9,847        

triennial permit and renewal fee is increased by the board under   9,848        

division (D)(1) of this section.                                   9,849        

      Sec. 4701.20.  All receipts of the accountancy board shall   9,858        

be deposited in the state treasury to the credit of the            9,859        

occupational licensing and regulatory fund, EXCEPT THAT ANY        9,860        

PAYMENT MADE TO THE BOARD IN CONNECTION WITH AN APPLICATION FOR    9,861        

EXAMINATION OR FOR A PERMIT, REGISTRATION, OR CERTIFICATE SHALL    9,862        

BE DEPOSITED ONLY AFTER THE BOARD APPROVES THE APPLICATION.  IN                 

THE EVENT THE APPLICATION IS NOT APPROVED, THE BOARD SHALL RETURN  9,863        

THE PAYMENT TO THE APPLICANT.  All                                 9,864        

      ALL vouchers of the board shall be approved by the board     9,867        

president or executive secretary, or both, as authorized by the    9,868        

                                                          227    

                                                                 
board.                                                                          

      Sec. 4743.05.  Except as otherwise provided in sections      9,877        

4701.20, 4723.061, and 4729.65 of the Revised Code, all money      9,878        

collected under Chapters 3773., 4701., 4703., 4709., 4713.,        9,879        

4715., 4717., 4723., 4725., 4729., 4732., 4733., 4734., 4736.,     9,880        

4741., 4753., 4755., 4757., 4759., and 4761. of the Revised Code   9,881        

shall be paid into the state treasury to the credit of the         9,882        

occupational licensing and regulatory fund, which is hereby        9,883        

created for use in administering such chapters.  Money deposited   9,884        

to the credit of the fund under section 4731.24 of the Revised     9,885        

Code shall be used until July 1, 1998, for administering Chapters  9,886        

4730. and 4731. of the Revised Code.                               9,887        

      At the end of each quarter, the director OF BUDGET AND       9,889        

MANAGEMENT shall transfer from the occupational licensing and      9,891        

regulatory fund to the nurse education assistance fund created in  9,892        

section 3333.28 of the Revised Code the amount certified to the    9,893        

director under division (B) of section 4723.08 of the Revised      9,894        

Code.                                                                           

      At the end of the first quarter of 1995 and at the end of    9,896        

each quarter thereafter, the director shall transfer from the      9,897        

occupational licensing and regulatory fund to the certified        9,898        

public accountant education assistance fund created in section     9,899        

4701.26 of the Revised Code the amount certified to the director   9,901        

under division (D)(2) of section 4701.10 of the Revised Code.                   

      Sec. 4745.01.  (A)  "Standard renewal procedure," as used    9,910        

in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923.,  9,911        

927., 942., 943., 953., 1321., 3710., 3713., 3715., 3719., 3731.,  9,912        

3742., 3748., 3769., 3783., 3921., 3951., 4104., 4105., 4143.,     9,913        

4169., 4561., 4701., 4703., 4707., 4709., 4713., 4715., 4717.,     9,914        

4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 4735.,     9,915        

4739., 4741., 4747., 4749., 4753., 4755., 4757., 4759., 4761.,     9,916        

4766., 4773., and 4775. of the Revised Code, means the license     9,917        

renewal procedures specified in this chapter.                      9,918        

      (B)  "Licensing agency," as used in this chapter, means any  9,920        

                                                          228    

                                                                 
department, division, board, section of a board, or other state    9,921        

governmental unit subject to the standard renewal procedure, as    9,922        

defined in this section, and authorized by the Revised Code to     9,923        

issue a license to engage in a specific profession, occupation,    9,924        

or occupational activity, or to have charge of and operate         9,925        

certain specified equipment, machinery, or premises.               9,926        

      (C)  "License," as used in this chapter, means a license,    9,928        

certificate, permit, card, or other authority issued or conferred  9,929        

by a licensing agency by authority of which the licensee has or    9,930        

claims the privilege to engage in the profession, occupation, or   9,931        

occupational activity, or to have control of and operate certain   9,932        

specific equipment, machinery, or premises, over which the         9,933        

licensing agency has jurisdiction.                                 9,934        

      (D)  "Licensee," as used in this chapter, means either the   9,936        

person to whom the license is issued or renewed by a licensing     9,937        

agency, or the person, partnership, or corporation at whose        9,938        

request the license is issued or renewed.                          9,939        

      (E)  "Renewal" and "renewed," as used in this chapter and    9,941        

in the chapters of the Revised Code specified in division (A) of   9,942        

this section, includes the continuing licensing procedure          9,943        

provided in Chapter 3748. of the Revised Code and rules adopted    9,945        

under it and in sections 1321.05 and 3921.33 of the Revised Code,  9,946        

and as applied to those continuing licenses any reference in this  9,948        

chapter to the date of expiration of any license shall be          9,949        

construed to mean the due date of the annual or other fee for the  9,950        

continuing license.                                                             

      Sec. 4981.091.  THERE IS HEREBY CREATED IN THE STATE         9,952        

TREASURY THE FEDERAL RAIL FUND.  THE FUND SHALL CONSIST OF MONEY   9,954        

RECEIVED PURSUANT TO SECTION 4981.08 OF THE REVISED CODE AND SUCH  9,955        

OTHER MONEY AS MAY BE PROVIDED BY LAW.  THE FUND SHALL BE USED TO  9,956        

ACQUIRE, REHABILITATE, OR DEVELOP RAIL PROPERTY OR SERVICE; TO     9,957        

PARTICIPATE IN THE ACQUISITION OF RAIL PROPERTY WITH THE FEDERAL   9,958        

GOVERNMENT, MUNICIPAL CORPORATIONS, TOWNSHIPS, COUNTIES, OR OTHER  9,959        

GOVERNMENTAL AGENCIES; AND TO PROMOTE, PLAN, DESIGN, CONSTRUCT,    9,960        

                                                          229    

                                                                 
OPERATE, AND MAINTAIN PASSENGER AND FREIGHT RAIL TRANSPORTATION    9,961        

SYSTEMS.  THE FUND ALSO MAY BE USED TO PAY THE ADMINISTRATIVE      9,962        

COSTS OF THE OHIO RAIL DEVELOPMENT COMMISSION ASSOCIATED WITH      9,963        

CONDUCTING ANY AUTHORIZED RAIL PROGRAM, AND FOR ANY PURPOSE                     

AUTHORIZED BY SECTIONS 4981.03 AND 5501.56 OF THE REVISED CODE.    9,964        

THE FUND SHALL NOT BE USED TO PROVIDE LOAN GUARANTEES.             9,965        

INVESTMENT EARNINGS ON MONEYS CREDITED TO THE FUND SHALL BE        9,966        

RETAINED BY THE FUND.                                                           

      IN ACQUIRING RAIL PROPERTY, THE OHIO RAIL DEVELOPMENT        9,968        

COMMISSION MAY OBTAIN ACQUISITION LOANS FROM THE FEDERAL           9,970        

GOVERNMENT OR FROM ANY OTHER SOURCE.                                            

      Sec. 5711.22.  (A)  Deposits not taxed at the source shall   9,979        

be listed and assessed at their amount in dollars on the day they  9,980        

are required to be listed.  Moneys shall be listed and assessed    9,981        

at the amount thereof in dollars on hand on the day that they are  9,982        

required to be listed.  In listing investments, the amount of the  9,983        

income yield of each for the calendar year next preceding the      9,984        

date of listing shall, except as otherwise provided in this        9,985        

chapter, be stated in dollars and cents and the assessment         9,986        

thereof shall be at the amount of such income yield; but any       9,987        

property defined as investments in either division (A) or (B) of   9,988        

section 5701.06 of the Revised Code that has not been outstanding  9,990        

for the full calendar year next preceding the date of listing,     9,991        

except shares of stock of like kind as other shares of the same    9,992        

corporation outstanding for the full calendar year next preceding  9,993        

the date of listing, or which has yielded no income during such    9,994        

calendar year shall be listed and assessed as unproductive         9,995        

investments, at their true value in money on the day that such     9,996        

investments are required to be listed.                                          

      Credits and other taxable intangibles shall be listed and    9,998        

assessed at their true value in money on the day as of which the   9,999        

same are required to be listed.                                    10,000       

      Shares of stock of a bank holding company, as defined in     10,002       

Title 12 U.S.C.A., section 1841, which are required to be listed   10,003       

                                                          230    

                                                                 
for taxation under this division and upon which dividends were     10,004       

paid during the year of their issuance, which dividends are        10,005       

subject to taxation under the provisions of Chapter 5747. of the   10,006       

Revised Code, shall be exempt from the intangibles tax for the     10,007       

year immediately succeeding their issuance.  If such shares bear   10,009       

dividends the first calendar year after their issuance, which      10,010       

dividends are subject to taxation under the provisions of Chapter  10,011       

5747. of the Revised Code, it shall be deemed that the             10,012       

nondelinquent intangible property tax pursuant to division (A) of  10,013       

section 5707.04 of the Revised Code was paid on those dividends    10,014       

paid that first calendar year after the issuance of the shares.    10,015       

      (B)(1)  Boilers, machinery, equipment, and personal          10,017       

property the true value of which is determined under division (B)  10,018       

of section 5711.21 of the Revised Code shall be listed and         10,019       

assessed at an amount equal to the sum of the products determined  10,020       

under divisions (B)(1)(a), (b), and (c) of this section.           10,021       

      (a)  Multiply the portion of the true value determined       10,023       

under division (B)(1) of section 5711.21 of the Revised Code by    10,024       

the assessment rate for the appropriate year in division (D)(E)    10,026       

of this section;                                                                

      (b)  Multiply the portion of the true value determined       10,028       

under division (B)(2) of section 5711.21 of the Revised Code by    10,029       

the assessment rate in section 5727.111 of the Revised Code that   10,030       

is applicable to the production equipment of an electric company;  10,031       

      (c)  Multiply the portion of the true value determined       10,033       

under division (B)(3) of section 5711.21 of the Revised Code by    10,034       

the assessment rate in section 5727.111 of the Revised Code that   10,035       

is applicable to the property of an electric company that is not   10,036       

production equipment.                                              10,037       

      (2) Personal property leased to a public utility or          10,039       

interexchange telecommunications company as defined in section     10,040       

5727.01 of the Revised Code and used directly in the rendition of  10,041       

a public utility service as defined in division (P) of section     10,042       

5739.01 of the Revised Code shall be listed and assessed at the    10,043       

                                                          231    

                                                                 
same percentage of true value in money that such property is       10,044       

required to be assessed by section 5727.111 of the Revised Code    10,045       

if owned by the public utility or interexchange                    10,046       

telecommunications company.                                        10,047       

      (C)(1)  Merchandise or an agricultural product shipped from  10,049       

outside this state and held in this state in a warehouse or a      10,050       

place of storage without further manufacturing or processing and   10,051       

for storage only and for shipment outside this state, but that is  10,053       

taxable because it does not qualify as "not used in business in    10,055       

this state" under division (B)(1) or (2) of section 5701.08 of                  

the Revised Code, shall be listed and assessed at a rate of        10,056       

twenty-five one-hundredths of its true value in money until        10,057       

reduced in accordance with the following schedule:                 10,058       

      (a)  For any year, subtract five one-hundredths from the     10,060       

rate at which such property was required to be listed and          10,061       

assessed in the preceding year, if the total statewide collection  10,062       

of all real and tangible personal property taxes for the second    10,064       

preceding year exceeded the total statewide collection of all                   

real and tangible personal property taxes for the third preceding  10,065       

year by more than the greater of four per cent or the rate of      10,066       

increase from the third to the second preceding years in the       10,067       

average consumer price index (all urban consumers, all items)      10,068       

prepared by the bureau of labor statistics of the United States    10,069       

department of labor;                                                            

      (b)  If no reduction in the assessment rate is made for a    10,071       

year, the rate is the same as for the preceding year.              10,072       

      (2)  Each year until the year the assessment rate equals     10,074       

zero, the tax commissioner shall determine the assessment rate     10,075       

required under this division and shall notify all county auditors  10,076       

of that rate.                                                                   

      (3)  Notwithstanding provisions to the contrary in division  10,078       

(B) of section 5701.08 of the Revised Code, during and after the   10,079       

year for which the assessment rate as calculated under this        10,080       

division equals zero, any merchandise or agricultural product      10,081       

                                                          232    

                                                                 
shipped from outside this state and held in this state in any      10,082       

warehouse or place of storage, whether public or private, without               

further manufacturing or processing and for storage only and for   10,083       

shipment outside this state to any person for any purpose is not   10,084       

used in business in this state for property tax purposes.          10,086       

      (D)(1)  Merchandise or an agricultural product owned by a    10,088       

qualified out-of-state person shipped from outside this state and  10,090       

held in this state in a public warehouse without further                        

manufacturing or processing and for temporary storage only and     10,091       

for shipment inside this state, but that is taxable because it     10,092       

does not qualify as "not used in business in this state" under     10,093       

division (B)(1) or (2) of section 5701.08 of the Revised Code,     10,096       

shall be listed and assessed at a rate of twenty-five              10,097       

one-hundredths of its true value in money until reduced in         10,098       

accordance with the following schedule:                            10,099       

      (a)  For any year, subtract five one-hundredths from the     10,102       

rate at which such property was required to be listed and          10,103       

assessed in the preceding year, if the total statewide collection  10,104       

of all real and tangible personal property taxes for the second    10,105       

preceding year exceeded the total statewide collection of all      10,106       

real and tangible personal property taxes for the third preceding  10,107       

year by more than the greater of four per cent or the rate of      10,108       

increase from the third to the second preceding years in the       10,109       

average consumer price index (all urban consumers, all items)      10,110       

prepared by the bureau of labor statistics of the United States    10,112       

department of labor;                                               10,113       

      (b)  If no reduction in the assessment rate is made for a    10,116       

year, the rate is the same as for the preceding year.              10,117       

      (2)  Each year until the year the assessment rate equals     10,119       

zero, the tax commissioner shall determine the assessment rate     10,120       

required under this division and shall notify all county auditors  10,122       

of that rate.                                                                   

      (3)  Notwithstanding provisions to the contrary in division  10,125       

(B) of section 5701.08 of the Revised Code, during and after the   10,127       

                                                          233    

                                                                 
year for which the assessment rate as calculated under this        10,128       

division equals zero, any merchandise or agricultural product      10,129       

described in division (D)(1) of this section is not used in        10,131       

business in this state for property tax purposes.                  10,132       

      (4)  As used in division (D) of this section:                10,135       

      (a)  "Qualified out-of-state person" means a person that     10,138       

does not own, lease, or use property, other than merchandise or    10,139       

an agricultural product described in this division, in this        10,140       

state, and does not have employees, agents, or representatives in  10,141       

this state;                                                                     

      (b)  "Public warehouse" means a warehouse in this state      10,144       

that is not subject to the control of or under the supervision of  10,145       

the owner of the merchandise or agricultural product stored in     10,146       

it, or staffed by the owner's employees, and from which the        10,147       

property is to be shipped inside this state.                       10,148       

      (E)  Unless otherwise provided by law, all other personal    10,150       

property used in business that has not been legally regarded as    10,151       

an improvement on land and considered in arriving at the value of  10,152       

the real property assessed for taxation shall be listed and        10,153       

assessed at the rate of twenty-five per cent of its true value in  10,155       

money.                                                                          

      Sec. 5733.04.  As used in this chapter:                      10,167       

      (A)  "Issued and outstanding shares of stock" applies to     10,169       

nonprofit corporations, as provided in section 5733.01 of the      10,170       

Revised Code, and includes but is not limited to, membership       10,171       

certificates and other instruments evidencing ownership of an      10,172       

interest in such nonprofit corporations, and with respect to a     10,173       

financial institution which does not have capital stock, "issued   10,174       

and outstanding shares of stock" includes, but is not limited to,  10,175       

ownership interests of depositors in the capital employed in such  10,176       

an institution.                                                    10,177       

      (B)  "Taxpayer" means a corporation subject to the tax       10,179       

imposed by section 5733.06 of the Revised Code.                    10,180       

      (C)  "Resident" means a corporation organized under the      10,182       

                                                          234    

                                                                 
laws of this state.                                                10,183       

      (D)  "Commercial domicile" means the principal place from    10,185       

which the trade or business of the taxpayer is directed or         10,186       

managed.                                                           10,187       

      (E)  "Taxable year" means the period prescribed by division  10,190       

(A) of section 5733.031 of the Revised Code upon the net income    10,192       

of which the value of the taxpayer's issued and outstanding        10,193       

shares of stock is determined under division (B) of section        10,195       

5733.05 of the Revised Code or the period prescribed by division   10,196       

(A) of section 5733.031 of the Revised Code that immediately       10,198       

precedes the date as of which the total value of the corporation   10,200       

is determined under division (A) or (C) of section 5733.05 of the  10,201       

Revised Code.                                                                   

      (F)  "Tax year" means the calendar year in and for which     10,203       

the tax imposed by section 5733.06 of the Revised Code is          10,205       

required to be paid.                                                            

      (G)  "Internal Revenue Code" means the "Internal Revenue     10,207       

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          10,208       

      (H)  "Federal income tax" means the income tax imposed by    10,210       

the Internal Revenue Code.                                         10,211       

      (I)  "Net EXCEPT AS PROVIDED IN SECTION 5733.058 OF THE      10,213       

REVISED CODE, "NET income" means the taxpayer's taxable income     10,214       

before operating loss deduction and special deductions, as         10,215       

required to be reported for the taxpayer's taxable year under the  10,216       

Internal Revenue Code, subject to the following adjustments:       10,217       

      (1)(a)  Deduct any net operating loss incurred in any        10,219       

taxable years ending in 1971 or thereafter but exclusive of any    10,220       

net operating loss incurred in taxable years ending prior to       10,221       

January 1, 1971.  This deduction shall not be allowed in any tax   10,222       

year commencing before December 31, 1973, but shall be carried     10,223       

over and allowed in tax years commencing after December 31, 1973,  10,224       

until fully utilized in the next succeeding taxable year or years  10,225       

in which the taxpayer has net income, but in no case for more      10,226       

than the designated carryover period as described in division      10,227       

                                                          235    

                                                                 
(I)(1)(b) of this section.  The amount of such net operating       10,228       

loss, as determined under the allocation and apportionment         10,229       

provisions of section 5733.051 and division (B) of section         10,230       

5733.05 of the Revised Code for the year in which the net          10,231       

operating loss occurs, shall be deducted from net income, as       10,232       

determined under the allocation and apportionment provisions of    10,233       

section 5733.051 and division (B) of section 5733.05 of the        10,234       

Revised Code, to the extent necessary to reduce net income to      10,235       

zero with the remaining unused portion of the deduction, if any,   10,236       

carried forward to the remaining years of the designated           10,237       

carryover period as described in division (I)(1)(b) of this        10,238       

section, or until fully utilized, whichever occurs first.          10,239       

      (b)  For losses incurred in taxable years ending on or       10,241       

before December 31, 1981, the designated carryover period shall    10,242       

be the five consecutive taxable years after the taxable year in    10,243       

which the net operating loss occurred.  For losses incurred in     10,244       

taxable years ending on or after January 1, 1982, the designated   10,245       

carryover period shall be the fifteen consecutive taxable years    10,246       

after the taxable year in which the net operating loss occurs.     10,247       

      (c)  The tax commissioner may require a taxpayer to furnish  10,249       

any information necessary to support a claim for deduction under   10,250       

division (I)(1)(a) of this section and no deduction shall be       10,251       

allowed unless the information is furnished.                       10,252       

      (2)  Deduct any amount included in net income by             10,254       

application of section 78 or 951 of the Internal Revenue Code,     10,255       

amounts received for royalties, technical or other services        10,256       

derived from sources outside the United States, and dividends      10,257       

received from a subsidiary, associate, or affiliated corporation   10,258       

that neither transacts any substantial portion of its business     10,259       

nor regularly maintains any substantial portion of its assets      10,260       

within the United States.  For purposes of determining net         10,261       

foreign source income deductible under division (I)(2) of this     10,262       

section, the amount of gross income from all such sources other    10,263       

than income derived by application of section 78 or 951 of the     10,264       

                                                          236    

                                                                 
Internal Revenue Code shall be reduced by:                         10,265       

      (a)  The amount of any reimbursed expenses for personal      10,267       

services performed by employees of the taxpayer for the            10,268       

subsidiary, associate, or affiliated corporation;                  10,269       

      (b)  Ten per cent of the amount of royalty income and        10,271       

technical assistance fees;                                         10,272       

      (c)  Fifteen per cent of the amount of dividends and all     10,274       

other income.                                                      10,275       

      The amounts described in divisions (I)(2)(a) to (c) of this  10,277       

section are deemed to be the expenses attributable to the          10,278       

production of deductible foreign source income unless the          10,279       

taxpayer shows, by clear and convincing evidence, less actual      10,280       

expenses or the tax commissioner shows, by clear and convincing    10,281       

evidence, more actual expenses.                                    10,282       

      (3)  Add any loss or deduct any gain resulting from the      10,284       

sale, exchange, or other disposition of a capital asset, or an     10,285       

asset described in section 1231 of the Internal Revenue Code, to   10,286       

the extent that such loss or gain occurred prior to the first      10,287       

taxable year on which the tax provided for in section 5733.06 of   10,288       

the Revised Code is computed on the corporation's net income. For  10,290       

purposes of division (I)(3) of this section, the amount of the     10,291       

prior loss or gain shall be measured by the difference between     10,292       

the original cost or other basis of the asset and the fair market  10,293       

value as of the beginning of the first taxable year on which the   10,294       

tax provided for in section 5733.06 of the Revised Code is         10,295       

computed on the corporation's net income.  At the option of the    10,296       

taxpayer, the amount of the prior loss or gain may be a                         

percentage of the gain or loss, which percentage shall be          10,297       

determined by multiplying the gain or loss by a fraction, the      10,298       

numerator of which is the number of months from the acquisition    10,299       

of the asset to the beginning of the first taxable year on which   10,300       

the fee provided in section 5733.06 of the Revised Code is         10,301       

computed on the corporation's net income, and the denominator of   10,302       

which is the number of months from the acquisition of the asset    10,303       

                                                          237    

                                                                 
to the sale, exchange, or other disposition of the asset.          10,304       

      (4)  Deduct the dividend received deduction provided by      10,306       

section 243 of the Internal Revenue Code.                          10,307       

      (5)  Deduct any interest or interest equivalent on public    10,309       

obligations and purchase obligations to the extent included in     10,310       

federal taxable income.  As used in divisions (I)(5) and (6) of    10,311       

this section, "public obligations," "purchase obligations," and    10,312       

"interest or interest equivalent" have the same meanings as in     10,313       

section 5709.76 of the Revised Code.                               10,314       

      (6)  Add any loss or deduct any gain resulting from the      10,316       

sale, exchange, or other disposition of public obligations to the  10,317       

extent included in federal taxable income.                         10,318       

      (7)  To the extent not otherwise allowed, deduct any         10,320       

dividends or distributions received by a taxpayer from a public    10,321       

utility, if the taxpayer owns at least eighty per cent of the      10,322       

issued and outstanding common stock of the utility.  As used in    10,323       

division (I)(7) of this section, "public utility" or "utility"     10,324       

means a public utility as defined in Chapter 5727. of the Revised  10,325       

Code, whether or not the utility is doing business in the state.   10,326       

      (8)  To the extent not otherwise allowed, deduct any         10,328       

dividends received by a taxpayer from an insurance company, if     10,329       

the taxpayer owns at least eighty per cent of the issued and       10,330       

outstanding common stock of the insurance company.  As used in     10,331       

division (I)(8) of this section, "insurance company" means an      10,332       

insurance company which is taxable under Chapter 5725. or 5729.    10,333       

of the Revised Code.                                               10,334       

      (9)  Deduct expenditures for modifying existing buildings    10,336       

or structures to meet American national standards institute        10,337       

standard A-117.1-1961 (R-1971), as amended; provided, that no      10,338       

deduction shall be allowed to the extent that such deduction is    10,339       

not permitted under federal law or under rules of the tax          10,340       

commissioner.  Those deductions as are allowed may be taken over   10,341       

a period of five years.  The tax commissioner shall adopt rules    10,342       

under Chapter 119. of the Revised Code establishing reasonable     10,343       

                                                          238    

                                                                 
limitations on the extent that expenditures for modifying          10,344       

existing buildings or structures are attributable to the purpose   10,345       

of making the buildings or structures accessible to and usable by  10,346       

physically handicapped persons.                                    10,347       

      (10)  Deduct the amount of wages and salaries, if any, not   10,349       

otherwise allowable as a deduction but that would have been        10,350       

allowable as a deduction in computing federal taxable income       10,351       

before operating loss deduction and special deductions for the     10,352       

taxable year, had the targeted jobs credit allowed and determined  10,353       

under sections 38, 51, and 52 of the Internal Revenue Code not     10,354       

been in effect.                                                    10,355       

      (11)  Deduct net interest income on obligations of the       10,357       

United States and its territories and possessions or of any        10,358       

authority, commission, or instrumentality of the United States to  10,359       

the extent the laws of the United States prohibit inclusion of     10,360       

the net interest for purposes of determining the value of the      10,361       

taxpayer's issued and outstanding shares of stock under division   10,362       

(B) of section 5733.05 of the Revised Code.  As used in division   10,363       

(I)(11) of this section, "net interest" means interest net of any  10,364       

expenses taken on the federal income tax return that would not     10,365       

have been allowed under section 265 of the Internal Revenue Code   10,366       

if the interest were exempt from federal income tax.               10,367       

      (12)(a)  Except as set forth in division (I)(12)(d) of this  10,369       

section, to the extent not included in computing the taxpayer's    10,370       

federal taxable income before operating loss deduction and         10,371       

special deductions, add gains and deduct losses from direct or     10,372       

indirect sales, exchanges, or other dispositions, made by a        10,373       

related entity who is not a taxpayer, of the taxpayer's indirect,  10,374       

beneficial, or constructive investment in the stock or debt of     10,375       

another entity, unless the gain or loss has been included in       10,376       

computing the federal taxable income before operating loss         10,377       

deduction and special deductions of another taxpayer with a more   10,378       

closely related investment in the stock or debt of the other       10,379       

entity.  The amount of gain added or loss deducted shall not       10,380       

                                                          239    

                                                                 
exceed the product obtained by multiplying such gain or loss by    10,381       

the taxpayer's proportionate share, directly, indirectly,          10,382       

beneficially, or constructively, of the outstanding stock of the   10,383       

related entity immediately prior to the direct or indirect sale,   10,384       

exchange, or other disposition.                                    10,385       

      (b)  Except as set forth in division (I)(12)(e) of this      10,387       

section, to the extent not included in computing the taxpayer's    10,388       

federal taxable income before operating loss deduction and         10,389       

special deductions, add gains and deduct losses from direct or     10,390       

indirect sales, exchanges, or other dispositions made by a         10,391       

related entity who is not a taxpayer, of intangible property       10,392       

other than stock, securities, and debt, if such property was       10,393       

owned, or used in whole or in part, at any time prior to or at     10,394       

the time of the sale, exchange, or disposition by either the       10,395       

taxpayer or by a related entity that was a taxpayer at any time    10,396       

during the related entity's ownership or use of such property,     10,397       

unless the gain or loss has been included in computing the         10,398       

federal taxable income before operating loss deduction and         10,399       

special deductions of another taxpayer with a more closely         10,400       

related ownership or use of such intangible property.   The        10,401       

amount of gain added or loss deducted shall not exceed the         10,402       

product obtained by multiplying such gain or loss by the           10,403       

taxpayer's proportionate share, directly, indirectly,              10,404       

beneficially, or constructively, of the outstanding stock of the   10,405       

related entity immediately prior to the direct or indirect sale,   10,406       

exchange, or other disposition.                                    10,407       

      (c)  As used in division (I)(12) of this section, "related   10,409       

entity" means those entities described in divisions (I)(12)(c)(i)  10,410       

to (iii) of this section:                                          10,411       

      (i)  An individual stockholder, or a member of the           10,413       

stockholder's family enumerated in section 318 of the Internal     10,414       

Revenue Code, if the stockholder and the members of the            10,415       

stockholder's family own, directly, indirectly, beneficially, or   10,416       

constructively, in the aggregate, at least fifty per cent of the   10,417       

                                                          240    

                                                                 
value of the taxpayer's outstanding stock;                         10,418       

      (ii)  A stockholder, or a stockholder's partnership,         10,420       

estate, trust, or corporation, if the stockholder and the          10,421       

stockholder's partnerships, estates, trusts, and corporations own  10,422       

directly, indirectly, beneficially, or constructively, in the      10,423       

aggregate, at least fifty per cent of the value of the taxpayer's  10,424       

outstanding stock;                                                 10,425       

      (iii)  A corporation, or a party related to the corporation  10,427       

in a manner that would require an attribution of stock from the    10,428       

corporation to the party or from the party to the corporation      10,429       

under division (I)(12)(c)(iv) of this section, if the taxpayer     10,430       

owns, directly, indirectly, beneficially, or constructively, at    10,431       

least fifty per cent of the value of the corporation's             10,432       

outstanding stock.                                                 10,433       

      (iv)  The attribution rules of section 318 of the Internal   10,435       

Revenue Code apply for purposes of determining whether the         10,436       

ownership requirements in divisions (I)(12)(c)(i) to (iii) of      10,437       

this section have been met.                                        10,438       

      (d)  For purposes of the adjustments required by division    10,440       

(I)(12)(a) of this section, the term "investment in the stock or   10,441       

debt of another entity" means only those investments where the     10,442       

taxpayer and the taxpayer's related entities directly,             10,443       

indirectly, beneficially, or constructively own, in the            10,444       

aggregate, at any time during the twenty-four month period         10,445       

commencing one year prior to the direct or indirect sale,          10,446       

exchange, or other disposition of such investment at least fifty   10,447       

per cent or more of the value of either the outstanding stock or   10,448       

such debt of such other entity.                                    10,449       

      (e)  For purposes of the adjustments required by division    10,451       

(I)(12)(b) of this section, the term "related entity" excludes     10,452       

all of the following:                                              10,453       

      (i)  Foreign corporations as defined in section 7701 of the  10,455       

Internal Revenue Code;                                             10,456       

      (ii)  Foreign partnerships as defined in section 7701 of     10,458       

                                                          241    

                                                                 
the Internal Revenue Code;                                         10,459       

      (iii)  Corporations, partnerships, estates, and trusts       10,461       

created or organized in or under the laws of the Commonwealth of   10,462       

Puerto Rico or any possession of the United States;                10,463       

      (iv)  Foreign estates and foreign trusts as defined in       10,465       

section 7701 of the Internal Revenue Code.                         10,466       

      The exclusions described in divisions (I)(12)(e)(i) to (iv)  10,468       

of this section do not apply if the corporation, partnership,      10,469       

estate, or trust is described in any one of divisions (C)(1) to    10,470       

(5) of section 5733.042 of the Revised Code.                       10,471       

      (f)  Nothing in division (I)(12) of this section shall       10,473       

require or permit a taxpayer to add any gains or deduct any        10,474       

losses described in divisions (I)(12)(f)(i) and (ii) of this       10,475       

section:                                                           10,476       

      (i)  Gains or losses recognized for federal income tax       10,478       

purposes by an individual, estate, or trust without regard to the  10,479       

attribution rules described in division (I)(12)(c) of this         10,480       

section, and                                                       10,481       

      (ii)  A related entity's gains or losses described in        10,483       

division (I)(12)(b) if the taxpayer's ownership of or use of such  10,484       

intangible property was limited to a period not exceeding nine     10,485       

months and was attributable to a transaction or a series of        10,486       

transactions executed in accordance with the election or           10,487       

elections made by the taxpayer or a related entity pursuant to     10,488       

section 338 of the Internal Revenue Code.                          10,489       

      (13)  Any adjustment required by section 5733.042 of the     10,491       

Revised Code.                                                      10,492       

      (14)  Add any amount claimed as a credit under section       10,495       

5733.0611 of the Revised Code to the extent that such amount       10,498       

satisfies either of the following:                                              

      (a)  It was deducted or excluded from the computation of     10,500       

the corporation's taxable income before operating loss deduction   10,502       

and special deductions as required to be reported for the          10,503       

corporation's taxable year under the Internal Revenue Code;        10,506       

                                                          242    

                                                                 
      (b)  It resulted in a reduction of the corporation's         10,508       

taxable income before operating loss deduction and special         10,510       

deductions as required to be reported for any of the               10,511       

corporation's taxable years under the Internal Revenue Code.       10,514       

      (14)(15)  Deduct the amount contributed by the taxpayer to   10,517       

an individual development account program established by a county  10,518       

department of human services pursuant to sections 329.11 to        10,519       

329.14 of the Revised Code for the purpose of matching funds       10,522       

deposited by program participants.  On request of the tax          10,523       

commissioner, the taxpayer shall provide any information that, in  10,524       

the tax commissioner's opinion, is necessary to establish the      10,525       

amount deducted under division (I)(14)(15) of this section.        10,526       

      (J)  Any term used in this chapter has the same meaning as   10,528       

when used in comparable context in the laws of the United States   10,529       

relating to federal income taxes unless a different meaning is     10,530       

clearly required.  Any reference in this chapter to the Internal   10,531       

Revenue Code includes other laws of the United States relating to  10,532       

federal income taxes.                                              10,533       

      (K)  "Financial institution" has the meaning given by        10,535       

section 5725.01 of the Revised Code but does not include a         10,537       

production credit association as described in 85 Stat. 597, 12     10,538       

U.S.C.A. 2091.                                                     10,540       

      (L)(1)  A "qualifying holding company" is any corporation    10,543       

satisfying all of the following requirements:                      10,544       

      (a)  Subject to divisions (L)(2) and (3) of this section,    10,547       

the net book value of the corporation's intangible assets is       10,548       

greater than or equal to ninety per cent of the net book value of  10,549       

all of its assets and at least fifty per cent of the net book      10,550       

value of all of its assets represents direct or indirect           10,551       

investments in the equity of, loans and advances to, and accounts  10,553       

receivable due from related members;                                            

      (b)  At least ninety per cent of the corporation's gross     10,556       

income for the taxable year is attributable to the following:      10,557       

      (i)  The maintenance, management, ownership, acquisition,    10,559       

                                                          243    

                                                                 
use, and disposition of its intangible property, its aircraft the  10,561       

use of which is not subject to regulation under 14 C.F.R. part     10,563       

121 or part 135, and any real property described in division       10,564       

(L)(2)(c) of this section;                                         10,566       

      (ii)  The collection and distribution of income from such    10,569       

property.                                                                       

      (c)  The corporation is not a financial institution on the   10,572       

last day of the taxable year ending prior to the first day of the  10,574       

tax year;                                                                       

      (d)  The corporation's related members make a good faith     10,577       

and reasonable effort to make timely and fully the adjustments     10,578       

required by division (C)(2) of section 5733.05 of the Revised      10,580       

Code and to pay timely and fully all uncontested taxes, interest,  10,581       

penalties, and other fees and charges imposed under this chapter;  10,582       

      (e)  Subject to division (L)(4) of this section, the         10,585       

corporation elects to be treated as a qualifying holding company   10,586       

for the tax year.                                                  10,587       

      A corporation otherwise satisfying divisions (L)(1)(a) to    10,591       

(e) of this section that does not elect to be a qualifying         10,592       

holding company is not a qualifying holding company for the        10,593       

purposes of this chapter.                                                       

      (2)(a)(i)  For purposes of making the ninety per cent        10,596       

computation under division (L)(1)(a) of this section, the net      10,599       

book value of the corporation's assets shall not include the net   10,600       

book value of aircraft or real property described in division      10,601       

(L)(1)(b)(i) of this section.                                      10,603       

      (ii)  For purposes of making the fifty per cent computation  10,606       

under division (L)(1)(a) of this section, the net book value of    10,608       

assets shall include the net book value of aircraft or real        10,609       

property described in division (L)(1)(b)(i) of this section.       10,612       

      (b)(i)  As used in division (L) of this section,             10,615       

"intangible asset" includes, but is not limited to, the            10,616       

corporation's direct interest in each pass-through entity only if  10,617       

at all times during the corporation's taxable year ending prior    10,618       

                                                          244    

                                                                 
to the first day of the tax year the corporation's and the         10,619       

corporation's related members' combined direct and indirect        10,620       

interests in the capital or profits of such pass-through entity    10,621       

do not exceed fifty per cent.  If the corporation's interest in    10,622       

the pass-through entity is an intangible asset for that taxable    10,623       

year, then the distributive share of any income from the           10,624       

pass-through entity shall be income from an intangible asset for   10,625       

that taxable year.                                                              

      (ii)  If a corporation's and the corporation's related       10,628       

members' combined direct and indirect interests in the capital or  10,629       

profits of a pass-through entity exceed fifty per cent at any      10,630       

time during the corporation's taxable year ending prior to the     10,631       

first day of the tax year, "intangible asset" does not include     10,632       

the corporation's direct interest in the pass-through entity, and  10,633       

the corporation shall include in its assets its proportionate      10,634       

share of the assets of any such pass-through entity and shall      10,635       

include in its gross income its distributive share of the gross    10,636       

income of such pass-through entity in the same form as was earned  10,637       

by the pass-through entity.                                        10,638       

      (iii)  A pass-through entity's direct or indirect            10,641       

proportionate share of any other pass-through entity's assets      10,642       

shall be included for the purpose of computing the corporation's   10,643       

proportionate share of the pass-through entity's assets under      10,644       

division (L)(2)(b)(ii) of this section, and such pass-through      10,646       

entity's distributive share of any other pass-through entity's     10,647       

gross income shall be included for purposes of computing the       10,648       

corporation's distributive share of the pass-through entity's      10,649       

gross income under division (L)(2)(b)(ii) of this section.         10,652       

      (c)  For the purposes of divisions (L)(1)(b)(i),             10,655       

(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real        10,658       

property is described in division (L)(2)(c) of this section only   10,660       

if all of the following conditions are present at all times        10,661       

during the taxable year ending prior to the first day of the tax   10,662       

year:                                                                           

                                                          245    

                                                                 
      (i)  The real property serves as the headquarters of the     10,665       

corporation's trade or business, or is the place from which the    10,666       

corporation's trade or business is principally managed or          10,667       

directed;                                                                       

      (ii)  Not more than ten per cent of the value of the real    10,670       

property and not more than ten per cent of the square footage of   10,671       

the building or buildings that are part of the real property is                 

used, made available, or occupied for the purpose of providing,    10,672       

acquiring, transferring, selling, or disposing of tangible         10,674       

property or services in the normal course of business to persons   10,675       

other than related members, the corporation's employees and their  10,676       

families, and such related members' employees and their families.  10,677       

      (d)  As used in division (L) of this section, "related       10,679       

member" has the same meaning as in division (A)(6) of section      10,682       

5733.042 of the Revised Code without regard to division (B) of     10,685       

that section.                                                                   

      (3)  The percentages described in division (L)(1)(a) of      10,689       

this section shall be equal to the quarterly average of those      10,690       

percentages as calculated during the corporation's taxable year    10,691       

ending prior to the first day of the tax year.                     10,692       

      (4)  With respect to the election described in division      10,694       

(L)(1)(e) of this section:                                         10,696       

      (a)  The election need not accompany a timely filed report;  10,699       

      (b)  The election need not accompany the report; rather,     10,701       

the election may accompany a subsequently filed but timely         10,702       

application for refund and timely amended report, or a             10,704       

subsequently filed but timely petition for reassessment;           10,705       

      (c)  The election is not irrevocable;                        10,708       

      (d)  The election applies only to the tax year specified by  10,711       

the corporation;                                                                

      (e)  The corporation's related members comply with division  10,713       

(L)(1)(d) of this section.                                         10,714       

      Nothing in division (L)(4) of this section shall be          10,717       

construed to extend any statute of limitations set forth in this   10,718       

                                                          246    

                                                                 
chapter.                                                           10,719       

      (M)  "Qualifying controlled group" means two or more         10,722       

corporations that satisfy the ownership and control requirements   10,723       

of division (A) of section 5733.052 of the Revised Code.           10,726       

      (N)  "Limited liability company" means any limited           10,728       

liability company formed under Chapter 1705. of the Revised Code   10,730       

or under the laws of any other state.                                           

      (O)  "Pass-through entity" means a corporation that has      10,733       

made an election under subchapter S of Chapter 1 of Subtitle A of  10,735       

the Internal Revenue Code for its taxable year under that code,    10,738       

or a partnership, limited liability company, or any other person,  10,739       

other than an individual, trust, or estate, if the partnership,    10,740       

limited liability company, or other person is not classified for   10,741       

federal income tax purposes as an association taxed as a           10,742       

corporation.                                                       10,743       

      Sec. 5733.05.  As used in this section, "qualified           10,752       

research" means laboratory research, experimental research, and    10,753       

other similar types of research; research in developing or         10,754       

improving a product; or research in developing or improving the    10,755       

means of producing a product.  It does not include market          10,756       

research, consumer surveys, efficiency surveys, management         10,757       

studies, ordinary testing or inspection of materials or products   10,758       

for quality control, historical research, or literary research.    10,759       

"Product" as used in this paragraph does not include services or   10,760       

intangible property.                                               10,761       

      The annual report determines the value of the issued and     10,764       

outstanding shares of stock of the taxpayer, which under division  10,765       

(A) or divisions (B) and (C) of this section is the base or        10,766       

measure of the franchise tax liability.  Such determination shall  10,767       

be made as of the date shown by the report to have been the        10,768       

beginning of the corporation's annual accounting period that       10,769       

includes the first day of January of the tax year.  For the        10,770       

purposes of this chapter, the value of the issued and outstanding  10,772       

shares of stock of any corporation that is a financial             10,774       

                                                          247    

                                                                 
institution shall be deemed to be the value as calculated in       10,776       

accordance with division (A) of this section.  For the purposes    10,778       

of this chapter, the value of the issued and outstanding shares    10,779       

of stock of any corporation that is not a financial institution    10,780       

shall be deemed to be the values as calculated in accordance with  10,781       

divisions (B) and (C) of this section.                             10,782       

      (A)  The total value, as shown by the books of the           10,784       

financial institution, of its capital, surplus, whether earned or  10,786       

unearned, undivided profits, and reserves shall be determined as   10,788       

prescribed by section 5733.056 of the Revised Code for tax years   10,789       

1998 and thereafter.                                               10,790       

      (B)  The sum of the corporation's net income during the      10,792       

corporation's taxable year, allocated or apportioned to this       10,794       

state as prescribed in divisions (B)(1) and (2) of this section,   10,796       

and subject to sections 5733.052, 5733.053, and 5733.057, AND      10,797       

5733.058 of the Revised Code:                                                   

      (1)  The net income allocated to this state as provided by   10,799       

section 5733.051 of the Revised Code.                              10,800       

      (2)  The amount of Ohio apportioned net income from sources  10,802       

other than those allocated under section 5733.051 of the Revised   10,803       

Code, which shall be determined by multiplying the corporation's   10,804       

net income by a fraction.  The numerator of the fraction is the    10,806       

sum of the following products:  the property factor multiplied by  10,809       

twenty, the payroll factor multiplied by twenty, and the sales     10,810       

factor multiplied by sixty.  The denominator of the fraction is    10,812       

one hundred, provided that the denominator shall be reduced by     10,814       

twenty if the property factor has a denominator of zero, by        10,816       

twenty if the payroll factor has a denominator of zero, and by     10,817       

sixty if the sales factor has a denominator of zero.                            

      The property, payroll, and sales factors shall be            10,819       

determined as follows:                                                          

      (a)  The property factor is a fraction the numerator of      10,821       

which is the average value of the corporation's real and tangible  10,822       

personal property owned or rented, and used in the trade or        10,823       

                                                          248    

                                                                 
business in this state during the taxable year, and the            10,824       

denominator of which is the average value of all the               10,825       

corporation's real and tangible personal property owned or         10,826       

rented, and used in the trade or business everywhere during such   10,827       

year.  There shall be excluded from the numerator and denominator  10,828       

of the property factor the original cost of all of the following   10,829       

property within Ohio:  property with respect to which a            10,830       

"pollution control facility" certificate has been issued pursuant  10,831       

to section 5709.21 of the Revised Code; property with respect to   10,832       

which an "industrial water pollution control certificate" has      10,833       

been issued pursuant to section 6111.31 of the Revised Code; and   10,834       

property used exclusively during the taxable year for qualified    10,835       

research.                                                          10,836       

      (i)  Property owned by the corporation is valued at its      10,838       

original cost.  Property rented by the corporation is valued at    10,839       

eight times the net annual rental rate.  "Net annual rental rate"  10,840       

means the annual rental rate paid by the corporation less any      10,841       

annual rental rate received by the corporation from subrentals.    10,842       

      (ii)  The average value of property shall be determined by   10,844       

averaging the values at the beginning and the end of the taxable   10,845       

year, but the tax commissioner may require the averaging of        10,846       

monthly values during the taxable year, if reasonably required to  10,847       

reflect properly the average value of the corporation's property.  10,848       

      (b)  The payroll factor is a fraction the numerator of       10,850       

which is the total amount paid in this state during the taxable    10,851       

year by the corporation for compensation, and the denominator of   10,852       

which is the total compensation paid everywhere by the             10,853       

corporation during such year.  There shall be excluded from the    10,854       

numerator and the denominator of the payroll factor the total      10,855       

compensation paid in this state to employees who are primarily     10,856       

engaged in qualified research.                                     10,857       

      (i)  Compensation means any form of remuneration paid to an  10,859       

employee for personal services.                                    10,860       

      (ii)  Compensation is paid in this state if:  (1) the        10,862       

                                                          249    

                                                                 
recipient's service is performed entirely within this state, (2)   10,863       

the recipient's service is performed both within and without this  10,864       

state, but the service performed without this state is incidental  10,865       

to the recipient's service within this state, (3) some of the      10,866       

service is performed within this state and either the base of      10,867       

operations, or if there is no base of operations, the place from   10,868       

which the service is directed or controlled is within this state,  10,869       

or the base of operations or the place from which the service is   10,870       

directed or controlled is not in any state in which some part of   10,871       

the service is performed, but the recipient's residence is in      10,872       

this state.                                                        10,873       

      (iii)  Compensation is paid in this state to any employee    10,875       

of a common or contract motor carrier corporation, who performs    10,876       

the employee's regularly assigned duties on a motor vehicle in     10,878       

more than one state, in the same ratio by which the mileage        10,879       

traveled by such employee within the state bears to the total      10,880       

mileage traveled by such employee everywhere during the taxable    10,881       

year.                                                                           

      (c)  The sales factor is a fraction the numerator of which   10,883       

is the total sales in this state by the corporation during the     10,884       

taxable year, and the denominator of which is the total sales by   10,885       

the corporation everywhere during such year.  In determining the   10,886       

numerator and denominator of the sales factor, receipts from the   10,887       

sale or other disposal of a capital asset or an asset described    10,888       

in section 1231 of the Internal Revenue Code shall be eliminated.  10,889       

Also, in determining the numerator and denominator of the sales    10,890       

factor, in the case of a reporting corporation owning at least     10,891       

eighty per cent of the issued and outstanding common stock of one  10,892       

or more public utilities or insurance companies, or owning at      10,893       

least twenty-five per cent of the issued and outstanding common    10,894       

stock of one or more financial institutions, receipts received by  10,895       

the reporting corporation from such utilities, insurance           10,896       

companies, and financial institutions shall be eliminated.         10,897       

      For the purpose of this section and section 5733.03 of the   10,899       

                                                          250    

                                                                 
Revised Code, sales of tangible personal property are in this      10,900       

state where such property is received in this state by the         10,901       

purchaser.  In the case of delivery of tangible personal property  10,902       

by common carrier or by other means of transportation, the place   10,903       

at which such property is ultimately received after all            10,904       

transportation has been completed shall be considered as the       10,905       

place at which such property is received by the purchaser.         10,906       

Direct delivery in this state, other than for purposes of          10,907       

transportation, to a person or firm designated by a purchaser      10,908       

constitutes delivery to the purchaser in this state, and direct    10,909       

delivery outside this state to a person or firm designated by a    10,910       

purchaser does not constitute delivery to the purchaser in this    10,911       

state, regardless of where title passes or other conditions of     10,912       

sale.                                                              10,913       

      Sales, other than sales of tangible personal property, are   10,915       

in this state if either:                                           10,916       

      (i)  The income-producing activity is performed solely in    10,918       

this state;                                                        10,919       

      (ii)  The income-producing activity is performed both        10,921       

within and without this state and a greater proportion of the      10,922       

income-producing activity is performed within this state than in   10,924       

any other state, based on costs of performance.                    10,925       

      (d)  If the allocation and apportionment provisions of       10,927       

division (B) of this section do not fairly represent the extent    10,929       

of the taxpayer's business activity in this state, the taxpayer    10,930       

may request, which request must be in writing and must accompany   10,931       

the report, timely filed petition for reassessment, or timely      10,932       

filed amended report, or the tax commissioner may require, in      10,933       

respect to all or any part of the taxpayer's allocated or          10,934       

apportioned base, if reasonable, any one or more of the            10,935       

following:                                                                      

      (i)  Separate accounting;                                    10,937       

      (ii)  The exclusion of any one or more of the factors;       10,939       

      (iii)  The inclusion of one or more additional factors       10,941       

                                                          251    

                                                                 
which will fairly represent the taxpayer's allocated or            10,942       

apportioned base in this state.                                    10,943       

      An alternative method will be effective only with approval   10,945       

by the tax commissioner.                                           10,946       

      Nothing in this section shall be construed to extend any     10,948       

statute of limitations set forth in this chapter.                  10,949       

      (C)(1)  Subject to divisions (C)(2) and (3) of this          10,952       

section, the total value, as shown on the books of each                         

corporation that is not a qualified holding company, of the net    10,953       

book value of a corporation's assets less the net carrying value   10,955       

of its liabilities.  For the purposes of determining that total    10,956       

value, any reserves shown on the corporation's books shall be      10,957       

considered liabilities or contra assets except for any reserves                 

that are deemed appropriations of retained earnings under          10,958       

generally accepted accounting principles.                          10,959       

      (2)(a)  If, on the last day of the taxpayer's taxable year   10,962       

preceding the tax year, the taxpayer is a related member to a      10,963       

corporation that elects to be a qualifying holding company for     10,964       

the tax year beginning after the last day of the taxpayer's        10,965       

taxable year, or if, on the last day of the taxpayer's taxable     10,966       

year preceding the tax year, a corporation that elects to be a     10,967       

qualifying holding company for the tax year beginning after the    10,968       

last day of the taxpayer's taxable year is a related member to     10,969       

the taxpayer, then the taxpayer's total value shall be adjusted    10,970       

by the qualifying amount.  Except as otherwise provided under      10,971       

division (C)(2)(b) of this section, "qualifying amount" means the  10,972       

amount that, when added to the taxpayer's total value, and when    10,974       

subtracted from the net carrying value of the taxpayer's           10,975       

liabilities computed without regard to division (C)(2) of this     10,977       

section, or when subtracted from the taxpayer's total value and    10,979       

when added to the net carrying value of the taxpayer's             10,980       

liabilities computed without regard to division (C)(2) of this     10,982       

section, results in the taxpayer's debt-to-equity ratio equaling   10,983       

the debt-to-equity ratio of the qualifying controlled group on     10,984       

                                                          252    

                                                                 
the last day of the taxable year ending prior to the first day of  10,985       

the tax year computed on a consolidated basis in accordance with   10,987       

general accepted accounting principles.  For the purposes of       10,988       

division (C)(2)(a) of this section, the corporation's total        10,989       

value, after the adjustment required by that division, shall not   10,990       

exceed the net book value of the corporation's assets.             10,991       

      (b)(i)  The amount added to the taxpayer's total value and   10,994       

subtracted from the net carrying value of the taxpayer's           10,995       

liabilities shall not exceed the amount of the net carrying value  10,996       

of the taxpayer's liabilities owed to the taxpayer's related       10,998       

members.                                                                        

      (ii)  A liability owed to the taxpayer's related members     11,000       

includes, but is not limited to, any amount that the corporation   11,002       

owes to a person that is not a related member if the               11,003       

corporation's related member or related members in whole or in     11,004       

part guarantee any portion or all of that amount, or pledge,       11,005       

hypothecate, mortgage, or carry out any similar transactions to    11,006       

secure any portion or all of that amount.                          11,007       

      (3)  The base upon which the tax is levied under division    11,009       

(C) of section 5733.06 of the Revised Code shall be computed by    11,011       

multiplying the amount determined under divisions (C)(1) and (2)   11,013       

of this section by the fraction determined under divisions         11,014       

(B)(2)(a) to (c) of this section and, if applicable, divisions     11,017       

(B)(2)(d)(ii) to (iv) of this section but without regard to        11,019       

section 5733.052 of the Revised Code.                              11,020       

      (4)  For purposes of division (C) of this section, "related  11,024       

member" has the same meaning as in division (A)(6) of section      11,025       

5733.042 of the Revised Code without regard to division (B) of     11,026       

that section.                                                                   

      Sec. 5733.057.  In AS USED IN THIS SECTION, "ADJUSTED        11,035       

QUALIFYING AMOUNT" HAS THE SAME MEANING AS IN SECTION 5733.40 OF   11,036       

THE REVISED CODE.                                                               

      EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (A) AND (B) OF     11,038       

SECTION 5733.401 AND IN SECTIONS 5733.058 AND 5747.401 OF THE      11,039       

                                                          253    

                                                                 
REVISED CODE, IN making any computation under sections 5733.042,   11,041       

5733.05, 5733.051, 5733.052, and 5733.053, 5733.40, 5733.41,       11,042       

5747.41, AND 5747.43 of the Revised Code, a corporation EACH       11,044       

PERSON shall include in its THAT PERSON'S items of ADJUSTED        11,045       

QUALIFYING AMOUNTS, allocable income or loss, IF ANY,              11,046       

apportionable income or loss, property, compensation, and sales,   11,048       

the corporation's PERSON'S entire distributive share or            11,049       

proportionate share of the items of ADJUSTED QUALIFYING AMOUNTS,   11,051       

allocable income or loss, apportionable income or loss, property,  11,053       

compensation, and sales of any pass-through entity in which the                 

corporation PERSON has a direct or indirect ownership interest at  11,055       

any time during the corporation's PERSON'S taxable year.  A        11,056       

pass-through entity's direct or indirect distributive share or     11,057       

proportionate share of any other pass-through entity's items of    11,058       

ADJUSTED QUALIFYING AMOUNTS, allocable income or loss,             11,060       

apportionable income or loss, property, compensation, and sales    11,061       

shall be included for the purposes of computing the corporation's  11,062       

PERSON'S distributive share or proportionate share of the          11,063       

pass-through entity's items of ADJUSTED QUALIFYING AMOUNTS,        11,064       

allocable income or loss, apportionable income or loss, property,  11,066       

compensation, and sales under this section.  Those items shall be  11,067       

in the same form as was recognized by the pass-through entity.     11,068       

      Sec. 5733.058.  (A)  AS USED IN THIS SECTION, AN "EXEMPTED   11,070       

INVESTMENT" IS A DIRECT OR INDIRECT INVESTMENT IN THE EQUITY OF,   11,071       

OR THE DIRECT OR INDIRECT OWNERSHIP OF, A PERSON SATISFYING        11,072       

DIVISIONS (A)(1) AND (2) OF THIS SECTION FOR THE PERSON'S ENTIRE   11,073       

FISCAL OR CALENDAR YEAR ENDING WITHIN OR WITH THE CORPORATION'S    11,074       

TAXABLE YEAR ENDING IMMEDIATELY PRIOR TO THE TAX YEAR.             11,075       

      (1)  THE PERSON IS A LIMITED LIABILITY COMPANY NOT TREATED   11,077       

AS A SEPARATE C CORPORATION FOR FEDERAL INCOME TAX PURPOSES, OR    11,078       

THE PERSON IS A PASS-THROUGH ENTITY.                               11,079       

      (2)  THE PERSON OWNS AND OPERATES A PUBLIC UTILITY IN THIS   11,081       

STATE AND AS SUCH IS REQUIRED BY LAW TO FILE REPORTS WITH THE TAX  11,082       

COMMISSIONER AND PAY AN EXCISE TAX UPON ITS GROSS RECEIPTS.        11,083       

                                                          254    

                                                                 
      (B)  EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION,     11,085       

EACH CORPORATION DIRECTLY OR INDIRECTLY OWNING OR DIRECTLY OR      11,086       

INDIRECTLY HAVING AN EQUITY INVESTMENT IN AN EXEMPTED INVESTMENT   11,087       

SHALL MAKE THE ADJUSTMENTS REQUIRED BY DIVISIONS (B)(1) TO (4) OF  11,088       

THIS SECTION.                                                                   

      (1)  THE CORPORATION SHALL DEDUCT FROM ITS NET INCOME THE    11,090       

DISTRIBUTIVE SHARE OF NET INCOME AND GAIN ATTRIBUTABLE TO THE      11,091       

CORPORATION'S EXEMPTED INVESTMENT, BUT ONLY TO THE EXTENT SUCH     11,092       

NET INCOME AND GAIN ARE INCLUDED IN THE CORPORATION'S NET INCOME   11,093       

WITHOUT REGARD TO THIS SECTION.                                                 

      (2)  THE CORPORATION SHALL ADD TO ITS NET INCOME THE         11,095       

DISTRIBUTIVE SHARE OF EXPENSES AND LOSSES ATTRIBUTABLE TO THE      11,096       

EXEMPTED INVESTMENT, BUT ONLY TO THE EXTENT SUCH EXPENSES AND      11,097       

LOSSES HAVE BEEN DEDUCTED IN CALCULATING THE CORPORATION'S NET     11,098       

INCOME WITHOUT REGARD TO THIS SECTION.                                          

      (3)(a)  THE CORPORATION SHALL EXCLUDE FROM THE CALCULATION   11,100       

OF ITS PROPERTY, PAYROLL, AND SALES FACTORS, AS DEFINED IN         11,101       

DIVISIONS (B)(2)(a) TO (c) OF SECTION 5733.05 OF THE REVISED       11,103       

CODE, THE CORPORATION'S PROPORTIONATE SHARE OF THE PROPERTY,                    

PAYROLL, AND SALES ATTRIBUTABLE TO THE EXEMPTED INVESTMENT, BUT    11,104       

ONLY TO THE EXTENT THE CORPORATION'S PROPORTIONATE SHARE OF THE    11,105       

PROPERTY, PAYROLL, AND SALES ATTRIBUTABLE TO THE EXEMPTED          11,106       

INVESTMENT WOULD BE INCLUDED IN THE CALCULATION OF THE             11,108       

CORPORATION'S PROPERTY, PAYROLL, AND SALES FACTORS UNDER SECTION                

5733.057 OF THE REVISED CODE WITHOUT REGARD TO THIS SECTION.       11,109       

      (b)  DIVISION (B)(3)(a) OF THIS SECTION DOES NOT APPLY TO    11,112       

DIVISION (B)(2)(d) OF SECTION 5733.05 OF THE REVISED CODE.         11,113       

      (4)  NOTWITHSTANDING SECTION 5733.98 OF THE REVISED CODE TO  11,115       

THE CONTRARY, A CORPORATION SHALL NOT BE ALLOWED ANY               11,116       

NONREFUNDABLE CREDIT OR NONREFUNDABLE CREDIT CARRYFORWARD LISTED   11,117       

IN THAT SECTION TO THE EXTENT THE CREDIT IS ATTRIBUTABLE TO THE    11,118       

CORPORATION'S DIRECT OR INDIRECT OWNERSHIP OF OR EQUITY                         

INVESTMENT IN AN EXEMPTED INVESTMENT AND SUCH CREDIT DIRECTLY      11,119       

RELATES TO THE OWNING AND OPERATING OF A PUBLIC UTILITY IN THIS    11,120       

                                                          255    

                                                                 
STATE BY A PERSON DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS    11,121       

SECTION.                                                                        

      (C)(1)  THE ADJUSTMENTS PROVIDED BY DIVISION (B) OF THIS     11,123       

SECTION SHALL BE ALLOWED AND REQUIRED ONLY TO THE EXTENT THAT      11,124       

SUCH ADJUSTMENTS DIRECTLY RELATE TO THE OWNING AND OPERATING OF A  11,125       

PUBLIC UTILITY IN THIS STATE BY A PERSON DESCRIBED IN DIVISIONS    11,126       

(A)(1) AND (2) OF THIS SECTION.                                                 

      (2)  TO THE EXTENT THAT ANY GROSS RECEIPTS OF A PERSON       11,128       

DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS SECTION ARE NOT FOR  11,129       

BUSINESS DONE BY SUCH PERSON FROM THE DIRECT OR INDIRECT           11,130       

OPERATION OF, OR THE DIRECT OR INDIRECT OWNERSHIP OF, A PUBLIC     11,131       

UTILITY IN THIS STATE, THEN SUCH GROSS RECEIPTS AND RELATED        11,132       

PROPERTY AND PAYROLL SHALL NOT BE SUBJECT TO THE ADJUSTMENT        11,133       

OTHERWISE PROVIDED BY DIVISION (B) OF THIS SECTION.                             

      (3)  DIVISION (B) OF THIS SECTION DOES NOT APPLY TO THE      11,135       

CORPORATION, AND SECTION 5733.057 OF THE REVISED CODE SHALL APPLY  11,136       

TO THE CORPORATION'S COMPUTATION OF ITS NET INCOME, ITS PROPERTY,  11,137       

PAYROLL, AND SALES FACTORS, AND ITS CREDITS TO THE EXTENT THAT     11,138       

THE PERSON DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS SECTION   11,139       

DIRECTLY OR INDIRECTLY OWNS OR DIRECTLY OR INDIRECTLY HAS AN       11,141       

EQUITY INVESTMENT IN ANY OTHER PERSON DESCRIBED IN DIVISION        11,142       

(A)(1) OF THIS SECTION BUT NOT DESCRIBED IN DIVISION (A)(2) OF     11,143       

THIS SECTION.                                                                   

      (D)  SECTION 5733.057 OF THE REVISED CODE APPLIES FOR        11,145       

PURPOSES OF THE OWNERSHIP AND INVESTMENT CRITERIA SET FORTH IN     11,146       

THIS SECTION.                                                                   

      (E)  THIS SECTION IS EFFECTIVE FOR TAXABLE YEARS ENDING      11,148       

AFTER SEPTEMBER 28, 1997.                                          11,149       

      Sec. 5733.0611.  (A)  There is hereby allowed a              11,158       

nonrefundable credit against the tax imposed under section         11,159       

5733.06 of the Revised Code.  The credit shall be equal to the     11,160       

taxpayer's proportionate share of the lesser of either the tax     11,161       

due or the tax paid by any qualifying entity under section         11,162       

5733.41 of the Revised Code for the qualifying taxable year of     11,163       

                                                          256    

                                                                 
the qualifying entity that ends in the taxable year of the         11,164       

taxpayer.  The taxpayer shall claim the credit for the taxpayer's  11,165       

taxable year in which ends the qualifying entity's qualifying      11,166       

taxable year.                                                                   

      In claiming the credit and determining its proportionate     11,169       

share of the tax due and the tax paid by the qualifying entity,    11,170       

the person claiming the credit shall follow the concepts set       11,171       

forth in subchapter K of the Internal Revenue Code.  Nothing in    11,172       

this division shall be construed to limit or disallow              11,173       

pass-through treatment of a pass-through entity's income,          11,174       

deductions, credits, or other amounts necessary to compute the     11,175       

tax imposed and the credits allowed under this chapter.                         

      The credit shall be claimed in the order required under      11,177       

section 5733.98 of the Revised Code.  Any unused credit shall be   11,179       

allowed as a credit in the ensuing tax year.  Any such amount                   

allowed as a credit in an ensuing tax year shall be deducted from  11,181       

the balance carried forward to the next ensuing tax year.                       

      (B)  Any person that is not a taxpayer solely by reason of   11,183       

division (A) or (C) of section 5733.09 of the Revised Code OR A    11,184       

PERSON DESCRIBED IN SECTION 501(c) OF THE INTERNAL REVENUE CODE    11,186       

OR DIVISION (F) OF SECTION 3334.01 OF THE REVISED CODE, but that   11,187       

would be entitled to claim the nonrefundable credit under this     11,188       

section if that person were a taxpayer, may file an application    11,189       

for refund pursuant to section 5733.12 of the Revised Code.  Upon  11,190       

proper application for refund under that section, the tax                       

commissioner shall issue a refund in the amount of the credit to   11,191       

which that person would have been entitled under division (A)(1)   11,193       

of this section had IF the person HAD been a taxpayer, and as if   11,194       

the credit were a refundable credit.                               11,195       

      (C)  If AN ORGANIZATION DESCRIBED IN SECTION 401(a) OF THE   11,197       

INTERNAL REVENUE CODE OR a trust or fund is entitled to a          11,199       

proportionate share of the lesser of either the tax due or the     11,200       

tax paid by any qualifying entity under section 5733.41 of the     11,201       

Revised Code, and if that proportionate share is then OR COULD BE  11,202       

                                                          257    

                                                                 
allocable to an exempt person as defined in division (D) of this   11,203       

section, then the qualifying ORGANIZATION, trust, or fund may      11,205       

file an application for refund with respect to such allocable      11,206       

amounts pursuant to section 5733.12 of the Revised Code.  Upon     11,207       

proper application for refund under that section, the tax          11,208       

commissioner shall issue a refund in the amount of the credit to   11,209       

which the qualifying ORGANIZATION, trust, or fund would have been  11,211       

entitled under division (A)(1) of this section had the             11,212       

ORGANIZATION, trust, or fund been a taxpayer, and as if the        11,213       

credit were a refundable credit.  To the extent that a SUCH AN     11,214       

ORGANIZATION, trust, or fund is permitted to apply for a refund    11,216       

under this division, or to the extent that a SUCH AN               11,217       

ORGANIZATION, trust, or fund has applied for such a refund,        11,218       

exempt persons are not entitled to the credit authorized under     11,219       

this section or section 5747.059 of the Revised Code.              11,221       

      (D)(1)  For the purposes of division (C) of this section     11,223       

only, "exempt person" means any of the following:                  11,224       

      (a)  A person that is or may be the beneficiary of a trust   11,226       

if the trust is subject to Subchapter D of Chapter 1 of Subtitle   11,227       

A of the Internal Revenue Code.                                    11,228       

      (b)  A person that is or may be the beneficiary of or the    11,231       

recipient of payments from a nuclear decommissioning reserve       11,232       

fund, a designated settlement fund, or any other trust or fund     11,233       

established to resolve and satisfy claims that may otherwise be    11,234       

asserted by the beneficiary or a member of the beneficiary's       11,235       

family.  Sections 267(c)(4), 468A(e), and 468B(d)(2) of the        11,236       

Internal Revenue Code apply to the determination of whether such   11,237       

a person is an exempt person under division (D) of this section.   11,238       

      (c)  A person, OTHER THAN A PERSON THAT IS TREATED AS A C    11,240       

CORPORATION FOR FEDERAL INCOME TAX PURPOSES, who is or may be the  11,241       

beneficiary of a trust that, under its governing instrument, is    11,242       

not required to distribute all of its income currently.  Division  11,244       

(D)(1)(c) of this section applies only if the trust irrevocably    11,245       

agrees that for the taxable year during or for which the trust     11,246       

                                                          258    

                                                                 
distributes any of its income to any of the beneficiaries, the     11,247       

trust is a qualifying trust AS DEFINED IN SECTION 5733.40 OF THE   11,248       

REVISED CODE and will pay the estimated tax, and will withhold     11,250       

and pay the withheld tax as required under SECTION 5733.41 AND     11,251       

sections 5747.40 to 5747.453 of the Revised Code.                  11,252       

      (2)  An exempt person does not include any person that       11,254       

would not qualify as an exempt person under the doctrines of       11,255       

"economic reality," "sham transaction," "step doctrine," or        11,256       

"substance over form."  A NOTWITHSTANDING SECTIONS 5733.111 AND    11,257       

5747.131 OF THE REVISED CODE TO THE CONTRARY, AN ORGANIZATION,     11,258       

trust, or fund described in division (C) of this section bears     11,261       

the burden of establishing by a preponderance of the evidence      11,262       

that any transaction giving rise to a claim for a refundable       11,263       

credit under this section does not have as a principal purpose a   11,264       

claim for that credit.  Nothing in this section shall be           11,265       

construed to limit solely to this section the application of the   11,266       

doctrines referred to in division (D)(2) of this section.          11,268       

      (e)(E)  Nothing in this section shall be construed to allow  11,271       

a refund more than once with respect to the taxes imposed under    11,272       

section 5733.41 or 5747.41 of the Revised Code.                    11,273       

      Sec. 5733.12.  (A)  Four and two-tenths per cent of all      11,282       

payments received by the treasurer of state from the taxes         11,283       

imposed under sections 5733.06 and 5733.41 of the Revised Code     11,284       

shall be credited to the local government fund for distribution    11,285       

in accordance with section 5747.50 of the Revised Code,            11,286       

six-tenths of one per cent shall be credited to the local          11,288       

government revenue assistance fund for distribution in accordance               

with section 5747.61 of the Revised Code, and ninety-five and      11,290       

two-tenths per cent shall be credited to the general revenue       11,291       

fund.                                                                           

      (B)  Except as otherwise provided under divisions (C) and    11,293       

(D) of this section, an application to refund to the corporation   11,295       

the amount of taxes imposed under section 5733.06 of the Revised   11,296       

Code that are overpaid, paid illegally or erroneously, or paid on  11,297       

                                                          259    

                                                                 
any illegal, erroneous, or excessive assessment, with interest     11,298       

thereon as provided by section 5733.26 of the Revised Code, shall  11,299       

be filed with the tax commissioner, on the form prescribed by the  11,301       

commissioner, within three years from the date of the illegal,     11,302       

erroneous, or excessive payment of the tax, or within any                       

additional period allowed by division (C)(2) of section 5733.031,  11,303       

division (D)(2) of section 5733.067, or division (A) of section    11,304       

5733.11 of the Revised Code.                                       11,305       

      On the filing of the refund application, the commissioner    11,307       

shall determine the amount of refund due and certify such amount   11,308       

to the director of budget and management and treasurer of state    11,309       

for payment from the tax refund fund created by section 5703.052   11,310       

of the Revised Code.                                               11,311       

      (C)  "Ninety days" shall be substituted for "three years"    11,314       

in division (B) of this section if the taxpayer satisfies both of  11,315       

the following:                                                     11,316       

      (1)  The taxpayer has applied for a refund based in whole    11,318       

or in part upon section 5733.0611 of the Revised Code;             11,319       

      (2)  The taxpayer asserts that the imposition or collection  11,321       

of the tax imposed or charged by section 5733.06 of the Revised    11,322       

Code or any portion of such tax violates the Constitution of the   11,323       

United States or the Constitution of this state.                   11,324       

      (D)(1)  Division (D)(2) of this section applies only if all  11,327       

of the following conditions are satisfied:                                      

      (a)  A qualifying pass-through entity pays an amount of the  11,330       

tax imposed by section 5733.41 of the Revised Code;                11,331       

      (b)  The taxpayer is a qualifying investor as to that        11,333       

qualifying pass-through entity;                                    11,334       

      (c)  The taxpayer did not claim the credit provided for in   11,336       

section 5733.0611 of the Revised Code as to the tax described in   11,337       

division (D)(1)(a) of this section;                                11,338       

      (d)  The three-year period described in division (B) of      11,341       

this section has ended as to the taxable year for which the                     

taxpayer otherwise would have claimed that credit.                 11,342       

                                                          260    

                                                                 
      (2)  A taxpayer shall file an application for refund         11,344       

pursuant to this division within one year after the date the       11,345       

payment described in division (D)(1)(a) of this section is made.   11,347       

An application filed under this division shall only claim refund   11,348       

of overpayments resulting from the taxpayer's failure to claim     11,349       

the credit described in division (D)(1)(c) of this section.        11,351       

Nothing in this division shall be construed to relieve a taxpayer  11,352       

from complying with the provisions of division (I)(13)(14) of      11,353       

section 5733.04 of the Revised Code.                                            

      Sec. 5733.40.  As used in sections 5733.40 and 5733.41 and   11,362       

Chapter 5747. of the Revised Code:                                 11,363       

      (A)(1)  "Adjusted qualifying amount" means either of the     11,365       

following:                                                                      

      (a)  The net sum of a qualifying investor's distributive     11,367       

share of the income, gain, expense, or loss of a qualifying        11,368       

pass-through entity for the qualifying taxable year of the         11,369       

qualifying pass-through entity multiplied by the apportionment     11,370       

fraction defined in division (B) of this section, subject to       11,371       

SECTION 5733.401 OF THE REVISED CODE AND divisions (A)(2) to (6)   11,372       

of this section;                                                   11,373       

      (b)  The sum of a qualifying beneficiary's share of the      11,375       

qualifying net income and qualifying net gain distributed by a     11,376       

qualifying trust for the qualifying taxable year of the            11,377       

qualifying trust multiplied by the apportionment fraction defined  11,378       

in division (B) of this section, subject to SECTION 5733.401 OF    11,379       

THE REVISED CODE AND divisions (A)(2) to (5) of this section.      11,380       

      (2)  The sum shall exclude any amount which, pursuant to     11,382       

the Constitution of the United States, the Constitution of Ohio,   11,383       

or any federal law is not subject to a tax on or measured by net   11,384       

income.                                                                         

      (3)  The sum shall be increased by all amounts representing  11,386       

expenses other than amounts described in division (A)(6) of this   11,388       

section that the taxpayer paid to or incurred with respect to      11,389       

direct or indirect transactions with one or more related members,  11,390       

                                                          261    

                                                                 
excluding the cost of goods sold calculated in accordance with     11,391       

section 263A of the Internal Revenue Code and United States        11,392       

department of the treasury regulations issued thereunder.                       

Nothing in division (A)(3) of this section shall be construed to   11,393       

limit solely to this chapter the application of section 263A of    11,394       

the Internal Revenue Code and United States department of the      11,395       

treasury regulations issued thereunder.                                         

      (4)  The sum shall be increased by all recognized losses,    11,397       

other than losses from sales of inventory the cost of which is     11,398       

calculated in accordance with section 263A of the Internal         11,399       

Revenue Code and United States department of the treasury          11,400       

regulations issued thereunder, with respect to all direct or       11,401       

indirect transactions with one or more related members.  Losses                 

from the sales of such inventory shall be calculated in            11,402       

accordance with section 482 of the Internal Revenue Code and       11,403       

United States department of the treasury regulations issued        11,404       

thereunder.  Nothing in division (A)(4) of this section shall be   11,405       

construed to limit solely to this section the application of                    

section 236A and section 482 of the Internal Revenue Code and      11,406       

United States department of the treasury regulations issued        11,407       

thereunder.                                                                     

      (5)  The sum shall be computed without regard to section     11,409       

5733.051 or division (D) of section 5733.052 of the Revised Code.  11,410       

      (6)  For the purposes of Chapters 5733. and 5747. of the     11,412       

Revised Code, guaranteed payments made by a partnership or by a    11,413       

limited liability company that is not subject to the tax imposed   11,414       

by section 5733.06 of the Revised Code, and compensation paid by   11,415       

an S corporation to its shareholders, shall be considered a        11,416       

distributive share of income of the partnership, limited           11,417       

liability company, or S corporation.  Division (A)(6) of this      11,418       

section applies only to such payments or such compensation made                 

or paid to a qualifying investor who is a related member to or of  11,419       

the qualifying entity.                                             11,420       

      (B)  "Apportionment fraction" means:                         11,422       

                                                          262    

                                                                 
      (1)  With respect to a qualifying pass-through entity other  11,425       

than a financial institution, the fraction calculated pursuant to  11,426       

division (B)(2) of section 5733.05 of the Revised Code as if the   11,427       

qualifying pass-through entity were a corporation subject to the   11,428       

tax imposed by section 5733.06 of the Revised Code;                             

      (2)  With respect to a qualifying pass-through entity that   11,430       

is a financial institution, the fraction calculated pursuant to    11,431       

DIVISION (C) OF section 5133.056 5733.056 of the Revised Code as   11,433       

if the qualifying pass-through entity were a financial                          

institution subject to the tax imposed by section 5733.06 of the   11,434       

Revised Code.                                                                   

      (3)  With respect to a qualifying trust, the fraction        11,436       

calculated pursuant to division (B)(2) of section 5733.05 of the   11,437       

Revised Code as if the qualifying trust were a corporation         11,438       

subject to the tax imposed by section 5733.06 of the Revised       11,439       

Code, except that the property, payroll, and sales fractions       11,440       

shall be calculated by including in the numerator and denominator  11,441       

of the fractions only the property, payroll, and sales,            11,442       

respectively, directly related to the production of income or      11,443       

gain from acquisition, ownership, use, maintenance, management,    11,444       

or disposition of tangible personal property located in this       11,445       

state at any time during the qualifying trust's qualifying         11,446       

taxable year or of real property located in this state.            11,447       

      (C)  "Qualifying beneficiary" means any individual that,     11,449       

during the qualifying taxable year of a qualifying trust, is a     11,450       

beneficiary of that trust, but does not include an individual who  11,451       

is a resident taxpayer for the purposes of Chapter 5747. of the    11,452       

Revised Code for the entire qualifying taxable year of the         11,453       

qualifying trust.                                                               

      (D)  "Fiscal year" means an accounting period ending on any  11,455       

day other than the thirty-first day of December.                   11,456       

      (E)  "Individual" means a natural person.                    11,458       

      (F)  "Month" means a calendar month.                         11,460       

      (G)  "Partnership" has the same meaning as in section        11,462       

                                                          263    

                                                                 
5747.01 of the Revised Code.                                       11,463       

      (H)  "Investor" means any person that, during any portion    11,465       

of a taxable year of a qualifying pass-through entity, is a        11,466       

partner, member, shareholder, or investor in that qualifying       11,467       

pass-through entity.                                                            

      (I)  "Qualifying EXCEPT AS OTHERWISE PROVIDED IN SECTION     11,469       

5733.402 OR 5747.401 OF THE REVISED CODE, "QUALIFYING investor"    11,470       

means any investor except those described in divisions (I)(1) to   11,471       

(9) of this section.                                                            

      (1)  An investor satisfying one of the descriptions under    11,473       

section 501(a) OR (c) of the Internal Revenue Code, AN ELECTING    11,475       

SMALL BUSINESS TRUST, A PARTNERSHIP WITH EQUITY SECURITIES         11,476       

REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE          11,477       

COMMISSION UNDER SECTION 12 OF THE "SECURITIES EXCHANGE ACT OF     11,478       

1934," AS AMENDED, OR AN INVESTOR DESCRIBED IN division (F) of     11,479       

section 3334.01, or division (A) or (C) of section 5733.09 of the  11,480       

Revised Code for the entire qualifying taxable year of the         11,482       

qualifying pass-through entity.                                                 

      (2)  An investor who is EITHER an individual OR AN ESTATE    11,484       

and IS a resident taxpayer for the purposes of section 5747.01 of  11,486       

the Revised Code for the entire qualifying taxable year of the     11,487       

qualifying pass-through entity.                                                 

      (3)  An investor who is an individual for whom the           11,489       

qualifying pass-through entity makes a good faith and reasonable   11,490       

effort to comply fully and timely with the filing and payment      11,491       

requirements set forth in division (D) of section 5747.08 of the   11,492       

Revised Code and section 5747.09 of the Revised Code with respect  11,493       

to the individual's adjusted qualifying amount for the entire      11,494       

qualifying taxable year of the qualifying pass-through entity.     11,495       

      (4)  An investor that is another qualifying pass-through     11,497       

entity having only investors described in division (I)(1), (2),    11,499       

(3), or (6) of this section during the three-year period                        

beginning twelve months prior to the first day of the qualifying   11,500       

taxable year of the qualifying pass-through entity.                11,501       

                                                          264    

                                                                 
      (5)  An investor that is another pass-through entity having  11,504       

no investors other than individuals and estates during the         11,505       

qualifying taxable year of the qualifying pass-through entity in   11,506       

which it is an investor, and that makes a good faith and           11,507       

reasonable effort to comply fully and timely with the filing and   11,508       

payment requirements set forth in division (D) of section 5747.08  11,509       

of the Revised Code and section 5747.09 of the Revised Code with   11,511       

respect to investors that are not resident taxpayers of this                    

state for the purposes of Chapter 5747. of the Revised Code for    11,513       

the entire qualifying taxable year of the qualifying pass-through  11,514       

entity in which it is an investor.                                 11,515       

      (6)  An investor that is a financial institution required    11,517       

to calculate the tax in accordance with division (D) of section    11,518       

5733.06 of the Revised Code on the first day of January of the     11,519       

calendar year immediately following the last day of the financial  11,521       

institution's calendar or fiscal year in which ends the                         

taxpayer's taxable year.                                           11,522       

      (7)  An investor other than an individual that satisfies     11,524       

all the following:                                                 11,525       

      (a)  The investor submits a written statement to the         11,527       

qualifying pass-through entity stating that the investor           11,528       

irrevocably agrees that the investor has nexus with this state     11,529       

under the Constitution of the United States and is subject to and  11,531       

liable for the tax calculated under division (B) of section        11,532       

5733.06 of the Revised Code with respect to the investor's         11,533       

adjusted qualifying amount for the entire qualifying taxable year  11,534       

of the qualifying pass-through entity.  The statement is subject   11,535       

to the penalties of perjury, shall be retained by the qualifying   11,536       

pass-through entity for no fewer than seven years, and shall be    11,537       

delivered to the tax commissioner upon request.                    11,538       

      (b)  The investor makes a good faith and reasonable effort   11,540       

to comply timely and fully with all the reporting and payment      11,541       

requirements set forth in Chapter 5733. of the Revised Code with   11,542       

respect to the investor's adjusted qualifying amount for the       11,543       

                                                          265    

                                                                 
entire qualifying taxable year of the qualifying pass-through      11,544       

entity.                                                                         

      (c)  Neither the investor nor the qualifying pass-through    11,546       

entity in which it is an investor, before, during, or after the    11,547       

qualifying pass-through entity's qualifying taxable year, carries  11,549       

out any transaction or transactions with one or more related                    

members of the investor or the qualifying pass-through entity      11,550       

resulting in a reduction or deferral of tax imposed by Chapter     11,551       

5733. of the Revised Code with respect to all or any portion of    11,552       

the investor's adjusted qualifying amount for the qualifying       11,553       

pass-through entity's taxable year, or that constitute a sham,     11,555       

lack economic reality, or are part of a series of transactions     11,556       

the form of which constitutes a step transaction or transactions   11,557       

or does not reflect the substance of those transactions.                        

      (8)  Any other investor that the tax commissioner may        11,559       

designate by rule.  The tax commissioner may adopt rules           11,560       

including a rule defining "qualifying investor" or "qualifying     11,561       

beneficiary" and governing the imposition of the withholding tax   11,563       

imposed by section 5747.41 of the Revised Code with respect to an  11,564       

individual who is a resident taxpayer for the purposes of Chapter  11,565       

5747. of the Revised Code for only a portion of the qualifying     11,566       

taxable year of the qualifying entity.                             11,567       

      (9)  An investor that is a trust or fund the beneficiaries   11,569       

of which, during the qualifying taxable year of the qualifying     11,570       

pass-through entity, are limited to the following:                 11,571       

      (a)  A person that is or may be the beneficiary of a trust   11,573       

subject to Subchapter D of Chapter 1 of Subtitle A of the          11,574       

Internal Revenue Code.                                                          

      (b)  A person that is or may be the beneficiary of or the    11,577       

recipient of payments from a trust or fund that is a nuclear       11,578       

decommissioning reserve fund, a designated settlement fund, or     11,579       

any other trust or fund established to resolve and satisfy claims  11,580       

that may otherwise be asserted by the beneficiary or a member of   11,581       

the beneficiary's family.  Sections 267(c)(4), 468A(e), and        11,582       

                                                          266    

                                                                 
468B(d)(2) of the Internal Revenue Code apply to the                            

determination of whether such a person satisfies division (I)(9)   11,583       

of this section.                                                   11,584       

      (c)  A person who is or may be the beneficiary of a trust    11,586       

that, under its governing instrument, is not required to           11,587       

distribute all of its income currently.  Division (I)(9)(c) of     11,588       

this section applies only if the trust, prior to the due date for  11,589       

filing the qualifying pass-through entity's return for taxes       11,590       

imposed by section 5733.41 and sections 5747.41 to 5747.453 of                  

the Revised Code, irrevocably agrees in writing that for the       11,591       

taxable year during or for which the trust distributes any of its  11,592       

income to any of its beneficiaries, the trust is a qualifying      11,593       

trust and will pay the estimated tax, and will withhold and pay    11,594       

the withheld tax, as required under sections 5747.40 to 5747.453   11,595       

of the Revised Code.                                                            

      For the purposes of division (I)(9) of this section, a       11,598       

trust or fund shall be considered to have a beneficiary other      11,599       

than persons described under divisions (I)(9)(a) to (c) of this    11,600       

section if a beneficiary would not qualify under those divisions   11,601       

under the doctrines of "economic reality," "sham transaction,"     11,602       

"step doctrine," or "substance over form."  A trust or fund        11,603       

described in division (I)(9) of this section bears the burden of   11,604       

establishing by a preponderance of the evidence that any           11,605       

transaction giving rise to the tax benefits provided under         11,606       

division (I)(9) of this section does not have as a principal                    

purpose a claim of those tax benefits.  Nothing in this section    11,607       

shall be construed to limit solely to this section the             11,608       

application of the doctrines referred to in this paragraph.        11,609       

      (J)  "Qualifying net gain" means any recognized net gain     11,611       

with respect to the acquisition, ownership, use, maintenance,      11,612       

management, or disposition of tangible personal property located   11,613       

in this state at any time during a trust's qualifying taxable      11,614       

year or real property located in this state.                       11,615       

      (K)  "Qualifying net income" means any recognized income,    11,617       

                                                          267    

                                                                 
net of related deductible expenses, other than distributions       11,618       

deductions with respect to the acquisition, ownership, use,        11,620       

maintenance, management, or disposition of tangible personal                    

property located in this state at any time during the trust's      11,622       

qualifying taxable year or real property located in this state.    11,623       

      (L)  "Qualifying entity" means a qualifying pass-through     11,625       

entity or a qualifying trust.                                      11,626       

      (M)  "Qualifying trust" means a trust subject to subchapter  11,628       

J of the Internal Revenue Code that, during any portion of the     11,630       

trust's qualifying taxable year, has income or gain from the       11,631       

acquisition, management, ownership, use, or disposition of         11,632       

tangible personal property located in this state at any time       11,633       

during the trust's qualifying taxable year or real property        11,634       

located in this state.  "Qualifying trust" does not include a      11,635       

person described in section 501(c) of the Internal Revenue Code                 

or a person described in division (C) of section 5733.09 of the    11,636       

Revised Code.                                                                   

      (N) "Qualifying pass-through entity" means a pass-through    11,638       

entity as defined in section 5733.04 of the Revised Code,          11,639       

excluding a person described in section 501(c) of the Internal     11,641       

Revenue Code, a partnership with equity securities registered                   

with the United States securities and exchange commission under    11,642       

section 12 of the Securities Exchange Act of 1934, as amended, or  11,643       

a person described in division (C) of section 5733.09 of the       11,644       

Revised Code.                                                                   

      (O)  "Quarter" means the first three months, the second      11,646       

three months, the third three months, or the last three months of  11,647       

a qualifying entity's qualifying taxable year.                     11,648       

      (P)  "Related member" has the same meaning as in division    11,650       

(A)(6) of section 5733.042 of the Revised Code without regard to   11,651       

division (B) of that section.  However, for the purposes of        11,652       

divisions (A)(3) and (4) of this section only, "related member"    11,653       

has the same meaning as in division (A)(6) of section 5733.042 of  11,654       

the Revised Code without regard to division  (B) of that section,  11,655       

                                                          268    

                                                                 
but shall be applied by substituting "forty per cent" for "twenty  11,656       

per cent" wherever "twenty per cent" appears in division (A) of    11,657       

that section.                                                                   

      (Q)  "Return" or "report" means the notifications and        11,659       

reports required to be filed pursuant to sections 5747.42 to       11,660       

5747.45 of the Revised Code for the purpose of reporting the tax   11,661       

imposed under section 5733.41 or 5747.41 of the Revised Code, and  11,662       

included declarations of estimated tax when so required.           11,663       

      (R)  "Qualifying taxable year" means the calendar year or    11,665       

the qualifying entity's fiscal year ending during the calendar     11,666       

year, or fractional part thereof, for which the adjusted           11,667       

qualifying amount is calculated pursuant to sections 5733.40 and   11,668       

5733.41 or sections 5747.40 to 5747.453 of the Revised Code.       11,669       

      Sec. 5733.401.  (A)  AS USED IN THIS SECTION:                11,672       

      (1)  "INVESTMENT PASS-THROUGH ENTITY" MEANS A PASS-THROUGH   11,674       

ENTITY HAVING FOR ITS QUALIFYING TAXABLE YEAR AT LEAST NINETY PER  11,676       

CENT OF ITS GROSS INCOME FROM TRANSACTION FEES IN CONNECTION WITH  11,677       

THE ACQUISITION, OWNERSHIP, OR DISPOSITION OF INTANGIBLE                        

PROPERTY, LOAN FEES, FINANCING FEES, CONSENT FEES, WAIVER FEES,    11,678       

APPLICATION FEES, NET MANAGEMENT FEES, DIVIDEND INCOME, INTEREST   11,679       

INCOME, NET CAPITAL GAINS FROM THE SALE OR EXCHANGE OF INTANGIBLE  11,681       

PROPERTY, OR DISTRIBUTIVE SHARES OF INCOME FROM PASS-THROUGH       11,682       

ENTITIES; AND HAVING FOR ITS QUALIFYING TAXABLE YEAR AT LEAST      11,683       

NINETY PER CENT OF THE NET BOOK VALUE OF ITS ASSETS REPRESENTED    11,684       

BY INTANGIBLE ASSETS.  SUCH PERCENTAGES SHALL BE THE QUARTERLY     11,685       

AVERAGE OF THOSE PERCENTAGES AS CALCULATED DURING THE              11,686       

PASS-THROUGH ENTITY'S TAXABLE YEAR.                                11,687       

      (2)  "NET MANAGEMENT FEES" MEANS MANAGEMENT FEES THAT A      11,689       

PASS-THROUGH ENTITY EARNS OR RECEIVES FROM ALL SOURCES, REDUCED    11,690       

BY MANAGEMENT FEES THAT THE PASS-THROUGH ENTITY INCURS OR PAYS TO  11,692       

ANY PERSON.                                                                     

      (B)  FOR THE PURPOSES OF DIVISIONS (A) AND (C) OF THIS       11,696       

SECTION ONLY, AN INVESTMENT IN A PASS-THROUGH ENTITY SHALL BE      11,697       

DEEMED TO BE AN INVESTMENT IN AN INTANGIBLE ASSET.                 11,698       

                                                          269    

                                                                 
      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS    11,702       

SECTION, FOR THE PURPOSES OF DIVISION (A) OF SECTION 5733.40 OF    11,703       

THE REVISED CODE, AN INVESTMENT PASS-THROUGH ENTITY SHALL EXCLUDE  11,705       

FROM THE CALCULATION OF THE ADJUSTED QUALIFYING AMOUNT ALL         11,706       

TRANSACTION FEES IN CONNECTION WITH THE ACQUISITION, OWNERSHIP,    11,707       

OR DISPOSITION OF INTANGIBLE PROPERTY, LOAN FEES, FINANCING FEES,  11,708       

CONSENT FEES, WAIVER FEES, APPLICATION FEES, NET MANAGEMENT FEES,  11,709       

DIVIDEND INCOME, INTEREST INCOME, NET CAPITAL GAINS FROM THE SALE  11,710       

OR EXCHANGE OF INTANGIBLE PROPERTY, AND ALL TYPES AND              11,711       

CLASSIFICATIONS OF INCOME ATTRIBUTABLE TO DISTRIBUTIVE SHARES OF   11,712       

INCOME FROM OTHER PASS-THROUGH ENTITIES.  NOTHING IN THIS          11,713       

DIVISION SHALL BE CONSTRUED TO PROVIDE FOR AN EXCLUSION OF ANY     11,714       

ITEM FROM ADJUSTED QUALIFYING AMOUNT MORE THAN ONCE.               11,715       

      (D)  SECTIONS 5733.057 AND 5747.231 OF THE REVISED CODE DO   11,718       

NOT APPLY FOR THE PURPOSES OF MAKING THE DETERMINATIONS REQUIRED   11,719       

BY DIVISION (A) OF THIS SECTION OR CLAIMING THE EXCLUSION          11,721       

PROVIDED BY DIVISION (C) OF THIS SECTION.                          11,722       

      Sec. 5733.402.  (A)  NOTWITHSTANDING SECTION 5733.40,        11,725       

5733.41, 5747.41, OR 5747.43 OF THE REVISED CODE, BUT SUBJECT TO   11,726       

DIVISIONS (B), (C), AND (D) OF THIS SECTION, FOR TAXABLE YEARS     11,730       

BEGINNING AFTER 1997, A QUALIFYING PASS-THROUGH ENTITY,            11,731       

HEREINAFTER THE "EXEMPT ENTITY," IS NOT SUBJECT TO THE TAXES       11,732       

IMPOSED BY AND REQUIRED TO BE PAID UNDER THOSE SECTIONS WITH                    

RESPECT TO DISTRIBUTIVE SHARES OF INCOME AND GAIN THAT PASS        11,734       

THROUGH FROM THE QUALIFYING PASS-THROUGH ENTITY TO ANOTHER         11,735       

QUALIFYING PASS-THROUGH ENTITY, HEREINAFTER THE "INVESTING         11,736       

ENTITY," IF THE INVESTING ENTITY IRREVOCABLY ACKNOWLEDGES THAT IT  11,737       

HAS NEXUS WITH THIS STATE UNDER THE CONSTITUTION OF THE UNITED     11,740       

STATES DURING THE EXEMPT ENTITY'S ENTIRE TAXABLE YEAR.             11,741       

      (B)(1)  DIVISION (A) OF THIS SECTION DOES NOT APPLY TO THE   11,745       

EXTENT THAT THE INVESTING ENTITY FAILS TO MAKE A GOOD FAITH AND    11,746       

REASONABLE EFFORT TO COMPLY ON A REASONABLY TIMELY BASIS WITH      11,747       

SECTION 5733.41 AND SECTIONS 5747.41 TO 5747.453 OF THE REVISED    11,748       

CODE.                                                                           

                                                          270    

                                                                 
      (2)  THE INVESTING ENTITY AND THE EXEMPT ENTITY BEARS THE    11,750       

BURDEN OF ESTABLISHING BY A PREPONDERANCE OF THE EVIDENCE THAT     11,752       

THE INVESTING ENTITY MADE A GOOD FAITH AND REASONABLE EFFORT TO    11,753       

COMPLY ON A REASONABLY TIMELY BASIS WITH SECTION 5733.41 AND       11,754       

SECTIONS 5747.41 TO 5747.453 OF THE REVISED CODE.                  11,755       

      (3)  THIS SECTION DOES NOT MODIFY, REDUCE, ABATE, DEFER,     11,757       

POSTPONE, OR BAR THE IMPOSITION OF AND THE REQUIRED PAYMENT OF     11,758       

ANY FEE, INTEREST, OR PENALTY OTHERWISE DUE UNDER TITLE LVII OF    11,761       

THE REVISED CODE.                                                  11,762       

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS    11,766       

SECTION, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO DENY THE    11,767       

APPLICATION OF DIVISION (A) OF THIS SECTION TO THE DISTRIBUTIVE    11,768       

SHARE OF INCOME AND GAIN OF AN INVESTING ENTITY THAT, WITH         11,769       

RESPECT TO THAT DISTRIBUTIVE SHARE, IS ITSELF AN EXEMPT ENTITY     11,770       

WITH RESPECT TO ANOTHER QUALIFYING PASS-THROUGH ENTITY,            11,771       

HEREINAFTER THE "UPPER LEVEL INVESTING ENTITY," IF THE UPPER       11,772       

LEVEL INVESTING ENTITY IRREVOCABLY ACKNOWLEDGES THAT IT HAS NEXUS  11,773       

WITH THIS STATE UNDER THE CONSTITUTION OF THE UNITED STATES        11,776       

DURING THE INVESTING ENTITY'S ENTIRE TAXABLE YEAR.  DIVISION (B)   11,778       

OF THIS SECTION ALSO APPLIES TO THE UPPER LEVEL INVESTING ENTITY.  11,779       

THIS DIVISION APPLIES REGARDLESS OF THE NUMBER OF LEVELS OF        11,780       

INVESTING ENTITIES.                                                11,781       

      (D)  AN INVESTING ENTITY OR UPPER LEVEL INVESTING ENTITY     11,784       

DOES NOT INCLUDE AN INVESTMENT PASS-THROUGH ENTITY AS DEFINED IN   11,785       

SECTION 5733.401 OF THE REVISED CODE, AND DIVISION (A) OF THIS     11,787       

SECTION DOES NOT APPLY WITH RESPECT TO ANY DISTRIBUTIVE SHARES OF  11,788       

INCOME OR GAIN THAT PASS THROUGH TO AN INVESTMENT PASS-THROUGH     11,789       

ENTITY.                                                                         

      Sec. 5733.98.  (A)  To provide a uniform procedure for       11,798       

calculating the amount of tax imposed by section 5733.06 of the    11,799       

Revised Code that is due under this chapter, a taxpayer shall      11,801       

claim any credits to which it is entitled in the following order,               

EXCEPT AS OTHERWISE PROVIDED IN SECTION 5733.058 OF THE REVISED    11,802       

CODE:                                                                           

                                                          271    

                                                                 
      (1)  The credit for taxes paid by a qualifying pass-through  11,804       

entity allowed under section 5733.0611 of the Revised Code;        11,805       

      (2)  The credit for qualifying affiliated groups under       11,807       

section 5733.068 of the Revised Code;                              11,808       

      (3)  The subsidiary corporation credit under section         11,810       

5733.067 of the Revised Code;                                      11,811       

      (4)  The savings and loan assessment credit under section    11,813       

5733.063 of the Revised Code;                                      11,814       

      (5)  The credit for recycling and litter prevention          11,816       

donations under section 5733.064 of the Revised Code;              11,818       

      (6)  The credit for employers that enter into agreements     11,821       

with child day-care centers under section 5733.36 of the Revised   11,822       

Code;                                                                           

      (7)  The credit for employers that reimburse employee child  11,824       

day-care expenses under section 5733.38 of the Revised Code;       11,826       

      (8)  The credit for manufacturing investments under section  11,828       

5733.061 of the Revised Code;                                      11,829       

      (9)  The credit for purchases of new manufacturing           11,831       

machinery and equipment under section 5733.31 or section 5733.311  11,832       

of the Revised Code;                                               11,833       

      (10)  The second credit for purchases of new manufacturing   11,836       

machinery and equipment under section 5733.33 of the Revised       11,837       

Code;                                                                           

      (11)  The enterprise zone credit under section 5709.66 of    11,839       

the Revised Code;                                                  11,840       

      (12)  The credit for the eligible costs associated with a    11,842       

voluntary action under section 5733.34 of the Revised Code;        11,844       

      (13)  The credit for employers that establish on-site child  11,847       

day-care under section 5733.37 of the Revised Code;                11,848       

      (14)  The credit for purchases of qualifying grape           11,850       

production property under section 5733.32 of the Revised Code;     11,851       

      (15)  The export sales credit under section 5733.069 of the  11,854       

Revised Code;                                                                   

      (16)  The credit for research and development and            11,856       

                                                          272    

                                                                 
technology transfer investors under section 5733.35 of the         11,857       

Revised Code;                                                                   

      (17)  The enterprise zone credits under section 5709.65 of   11,860       

the Revised Code;                                                               

      (18)  The refundable jobs creation credit under section      11,862       

5733.0610 of the Revised Code.                                     11,863       

      (B)  For any credit except the refundable jobs creation      11,865       

credit, the amount of the credit for a tax year shall not exceed   11,866       

the tax due after allowing for any other credit that precedes it   11,867       

in the order required under this section.  Any excess amount of a  11,868       

particular credit may be carried forward if authorized under the   11,869       

section creating that credit.                                      11,870       

      Sec. 5747.01.  Except as otherwise expressly provided or     11,880       

clearly appearing from the context, any term used in this chapter  11,881       

has the same meaning as when used in a comparable context in the   11,882       

Internal Revenue Code, and all other statutes of the United        11,883       

States relating to federal income taxes.                           11,884       

      As used in this chapter:                                     11,886       

      (A)  "Adjusted gross income" or "Ohio adjusted gross         11,888       

income" means adjusted gross income as defined and used in the     11,889       

Internal Revenue Code, adjusted as provided in divisions (A)(1)    11,891       

to (16)(17) of this section:                                                    

      (1)  Add interest or dividends on obligations or securities  11,893       

of any state or of any political subdivision or authority of any   11,894       

state, other than this state and its subdivisions and              11,895       

authorities.                                                                    

      (2)  Add interest or dividends on obligations of any         11,897       

authority, commission, instrumentality, territory, or possession   11,898       

of the United States that are exempt from federal income taxes     11,899       

but not from state income taxes.                                   11,900       

      (3)  Deduct interest or dividends on obligations of the      11,902       

United States and its territories and possessions or of any        11,903       

authority, commission, or instrumentality of the United States to  11,904       

the extent included in federal adjusted gross income but exempt    11,905       

                                                          273    

                                                                 
from state income taxes under the laws of the United States.       11,906       

      (4)  Deduct disability and survivor's benefits to the        11,908       

extent included in federal adjusted gross income.                  11,909       

      (5)  Deduct benefits under Title II of the Social Security   11,911       

Act and tier 1 railroad retirement benefits to the extent          11,912       

included in federal adjusted gross income under section 86 of the  11,913       

Internal Revenue Code.                                             11,914       

      (6)  Add, in the case of a taxpayer who is a beneficiary of  11,916       

a trust that makes an accumulation distribution as defined in      11,917       

section 665 of the Internal Revenue Code, the portion, if any, of  11,918       

such distribution that does not exceed the undistributed net       11,919       

income of the trust for the three taxable years preceding the      11,920       

taxable year in which the distribution is made.  "Undistributed    11,921       

net income of a trust" means the taxable income of the trust       11,922       

increased by (a)(i) the additions to adjusted gross income         11,923       

required under division (A) of this section and (ii) the personal  11,924       

exemptions allowed to the trust pursuant to section 642(b) of the  11,925       

Internal Revenue Code, and decreased by (b)(i) the deductions to   11,926       

adjusted gross income required under division (A) of this          11,927       

section, (ii) the amount of federal income taxes attributable to   11,928       

such income, and (iii) the amount of taxable income that has been  11,929       

included in the adjusted gross income of a beneficiary by reason   11,930       

of a prior accumulation distribution.  Any undistributed net       11,931       

income included in the adjusted gross income of a beneficiary      11,932       

shall reduce the undistributed net income of the trust commencing  11,933       

with the earliest years of the accumulation period.                11,934       

      (7)  Deduct the amount of wages and salaries, if any, not    11,936       

otherwise allowable as a deduction but that would have been        11,937       

allowable as a deduction in computing federal adjusted gross       11,938       

income for the taxable year, had the targeted jobs credit allowed  11,939       

and determined under sections 38, 51, and 52 of the Internal       11,940       

Revenue Code not been in effect.                                   11,941       

      (8)  Deduct any interest or interest equivalent on public    11,943       

obligations and purchase obligations to the extent included in     11,944       

                                                          274    

                                                                 
federal adjusted gross income.                                     11,945       

      (9)  Add any loss or deduct any gain resulting from the      11,947       

sale, exchange, or other disposition of public obligations to the  11,948       

extent included in federal adjusted gross income.                  11,949       

      (10)  Regarding tuition credits purchased under Chapter      11,951       

3334. of the Revised Code:                                         11,952       

      (a)  Deduct the following:                                   11,954       

      (i)  For credits that as of the end of the taxable year      11,957       

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    11,959       

amount of income related to the credits, to the extent included    11,960       

in federal adjusted gross income;                                               

      (ii)  For credits that during the taxable year have been     11,963       

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  11,964       

the total purchase price of the tuition credits refunded over the  11,965       

amount of refund, to the extent the amount of the excess was not   11,966       

deducted in determining federal adjusted gross income;             11,967       

      (b)  Add the following:                                      11,969       

      (i)  For credits that as of the end of the taxable year      11,972       

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    11,973       

amount of loss related to the credits, to the extent the amount    11,974       

of the loss was deducted in determining federal adjusted gross     11,975       

income;                                                                         

      (ii)  For credits that during the taxable year have been     11,978       

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  11,980       

the amount of refund over the purchase price of each tuition       11,981       

credit refunded, to the extent not included in federal adjusted    11,982       

gross income.                                                                   

      (11)  Deduct, in the case of a self-employed individual as   11,984       

defined in section 401(c)(1) of the Internal Revenue Code and to   11,985       

the extent not otherwise allowable as a deduction in computing     11,986       

                                                          275    

                                                                 
federal adjusted gross income for the taxable year, the amount     11,987       

paid during the taxable year for insurance which THAT constitutes  11,989       

medical care for the taxpayer, the taxpayer's spouse, and                       

dependents.  No deduction under division (A)(11) of this section   11,991       

shall be allowed to any taxpayer who is eligible to participate    11,992       

in any subsidized health plan maintained by any employer of the    11,993       

taxpayer or of the spouse of the taxpayer.  No deduction under     11,994       

division (A)(11) of this section shall be allowed to the extent    11,995       

that the sum of such deduction and any related deduction           11,996       

allowable in computing federal adjusted gross income for the       11,997       

taxable year exceeds the taxpayer's earned income, within the      11,998       

meaning of section 401(c) of the Internal Revenue Code, derived    11,999       

by the taxpayer from the trade or business with respect to which   12,000       

the plan providing the medical coverage is established.            12,001       

      (12)  Deduct any amount included in federal adjusted gross   12,003       

income solely because the amount represents a reimbursement or     12,004       

refund of expenses that in a previous year the taxpayer had        12,005       

deducted as an itemized deduction pursuant to section 63 of the    12,006       

Internal Revenue Code and applicable United States department of   12,008       

the treasury regulations.                                                       

      (13)  Deduct any portion of the deduction described in       12,010       

section 1341(a)(2) of the Internal Revenue Code, for repaying      12,011       

previously reported income received under a claim of right, that   12,012       

meets both of the following requirements:                          12,013       

      (a)  It is allowable for repayment of an item that was       12,015       

included in the taxpayer's adjusted gross income for a prior       12,016       

taxable year and did not qualify for a credit under division (A)   12,017       

or (B) of section 5747.05 of the Revised Code for that year;       12,018       

      (b)  It does not otherwise reduce the taxpayer's adjusted    12,020       

gross income for the current or any other taxable year.            12,021       

      (14)  Deduct an amount equal to the deposits made to, and    12,023       

net investment earnings of, a medical savings account during the   12,024       

taxable year, in accordance with section 3924.66 of the Revised    12,025       

Code.  THE DEDUCTION ALLOWED BY DIVISION (A)(14) OF THIS SECTION   12,026       

                                                          276    

                                                                 
DOES NOT APPLY TO MEDICAL SAVINGS ACCOUNT DEPOSITS AND EARNINGS    12,027       

OTHERWISE DEDUCTED OR EXCLUDED FOR THE CURRENT OR ANY OTHER        12,028       

TAXABLE YEAR FROM THE TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME.    12,029       

      (15)(a)  Add an amount equal to the funds withdrawn from a   12,031       

medical savings account during the taxable year, and the net       12,032       

investment earnings on those funds, when the funds withdrawn were  12,033       

used for any purpose other than to reimburse an account holder     12,034       

for, or to pay, eligible medical expenses, in accordance with      12,035       

section 3924.66 of the Revised Code;                                            

      (b)  Add the amounts distributed from a medical savings      12,037       

account under division (A)(2) of section 3924.68 of the Revised    12,038       

Code during the taxable year.                                      12,039       

      (16)  Add any amount claimed as a credit under section       12,041       

5747.059 of the Revised Code to the extent that such amount        12,042       

satisfies either of the following:                                              

      (a)  The amount was deducted or excluded from the            12,044       

computation of the taxpayer's federal adjusted gross income as     12,045       

required to be reported for the taxpayer's taxable year under the  12,046       

Internal Revenue Code;                                                          

      (b)  The amount resulted in a reduction of the taxpayer's    12,048       

federal adjusted gross income as required to be reported for any   12,049       

of the taxpayer's taxable years under the Internal Revenue Code.   12,050       

      (16)(17)  Deduct the amount contributed by the taxpayer to   12,052       

an individual development account program established by a county  12,053       

department of human services pursuant to sections 329.11 to        12,054       

329.14 of the Revised Code for the purpose of matching funds       12,055       

deposited by program participants.  On request of the tax          12,056       

commissioner, the taxpayer shall provide any information that, in               

the tax commissioner's opinion, is necessary to establish the      12,057       

amount deducted under division (A)(16)(17) of this section.        12,058       

      (B)  "Business income" means income arising from             12,060       

transactions, activities, and sources in the regular course of a   12,061       

trade or business and includes income from tangible and            12,062       

intangible property if the acquisition, rental, management, and    12,063       

                                                          277    

                                                                 
disposition of the property constitute integral parts of the       12,064       

regular course of a trade or business operation.                   12,065       

      (C)  "Nonbusiness income" means all income other than        12,067       

business income and may include, but is not limited to,            12,068       

compensation, rents and royalties from real or tangible personal   12,069       

property, capital gains, interest, dividends and distributions,    12,070       

patent or copyright royalties, or lottery winnings, prizes, and    12,071       

awards.                                                            12,072       

      (D)  "Compensation" means any form of remuneration paid to   12,074       

an employee for personal services.                                 12,075       

      (E)  "Fiduciary" means a guardian, trustee, executor,        12,077       

administrator, receiver, conservator, or any other person acting   12,078       

in any fiduciary capacity for any individual, trust, or estate.    12,079       

      (F)  "Fiscal year" means an accounting period of twelve      12,081       

months ending on the last day of any month other than December.    12,082       

      (G)  "Individual" means any natural person.                  12,084       

      (H)  "Internal Revenue Code" means the "Internal Revenue     12,086       

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          12,087       

      (I)  "Resident" means:                                       12,089       

      (1)  An individual who is domiciled in this state, subject   12,091       

to section 5747.24 of the Revised Code;                            12,092       

      (2)  The estate of a decedent who at the time of death was   12,095       

domiciled in this state.  The domicile tests of section 5747.24    12,096       

of the Revised Code and any election under section 5747.25 of the  12,097       

Revised Code are not controlling for purposes of division (I)(2)   12,098       

of this section.                                                                

      (J)  "Nonresident" means an individual or estate that is     12,100       

not a resident.  An individual who is a resident for only part of  12,101       

a taxable year is a nonresident for the remainder of that taxable  12,102       

year.                                                              12,103       

      (K)  "Pass-through entity" has the same meaning as in        12,105       

section 5733.04 of the Revised Code.                               12,106       

      (L)  "Return" means the notifications and reports required   12,108       

to be filed pursuant to this chapter for the purpose of reporting  12,109       

                                                          278    

                                                                 
the tax due and includes declarations of estimated tax when so     12,110       

required.                                                          12,111       

      (M)  "Taxable year" means the calendar year or the           12,113       

taxpayer's fiscal year ending during the calendar year, or         12,114       

fractional part thereof, upon which the adjusted gross income is   12,115       

calculated pursuant to this chapter.                               12,116       

      (N)  "Taxpayer" means any person subject to the tax imposed  12,118       

by section 5747.02 of the Revised Code or any pass-through entity  12,119       

that makes the election under division (D) of section 5747.08 of   12,120       

the Revised Code.                                                               

      (O)  "Dependents" means dependents as defined in the         12,122       

Internal Revenue Code and as claimed in the taxpayer's federal     12,123       

income tax return for the taxable year or which the taxpayer       12,124       

would have been permitted to claim had the taxpayer filed a        12,125       

federal income tax return.                                         12,127       

      (P)  "Principal county of employment" means, in the case of  12,129       

a nonresident, the county within the state in which a taxpayer     12,130       

performs services for an employer or, if those services are        12,131       

performed in more than one county, the county in which the major   12,132       

portion of the services are performed.                             12,133       

      (Q)  As used in sections 5747.50 to 5747.55 of the Revised   12,135       

Code:                                                                           

      (1)  "Subdivision" means any county, municipal corporation,  12,137       

park district, or township.                                        12,138       

      (2)  "Essential local government purposes" includes all      12,140       

functions that any subdivision is required by general law to       12,141       

exercise, including like functions that are exercised under a      12,142       

charter adopted pursuant to the Ohio Constitution.                 12,143       

      (R)  "Overpayment" means any amount already paid that        12,145       

exceeds the figure determined to be the correct amount of the      12,146       

tax.                                                               12,147       

      (S)  "Taxable income" applies to estates only and means      12,149       

taxable income as defined and used in the Internal Revenue Code    12,150       

adjusted as follows:                                               12,151       

                                                          279    

                                                                 
      (1)  Add interest or dividends on obligations or securities  12,153       

of any state or of any political subdivision or authority of any   12,154       

state, other than this state and its subdivisions and              12,155       

authorities;                                                       12,156       

      (2)  Add interest or dividends on obligations of any         12,158       

authority, commission, instrumentality, territory, or possession   12,159       

of the United States that are exempt from federal income taxes     12,160       

but not from state income taxes;                                   12,161       

      (3)  Add the amount of personal exemption allowed to the     12,163       

estate pursuant to section 642(b) of the Internal Revenue Code;    12,164       

      (4)  Deduct interest or dividends on obligations of the      12,166       

United States and its territories and possessions or of any        12,167       

authority, commission, or instrumentality of the United States     12,168       

that are exempt from state taxes under the laws of the United      12,169       

States;                                                            12,170       

      (5)  Deduct the amount of wages and salaries, if any, not    12,172       

otherwise allowable as a deduction but that would have been        12,173       

allowable as a deduction in computing federal taxable income for   12,174       

the taxable year, had the targeted jobs credit allowed under       12,175       

sections 38, 51, and 52 of the Internal Revenue Code not been in   12,176       

effect;                                                            12,177       

      (6)  Deduct any interest or interest equivalent on public    12,179       

obligations and purchase obligations to the extent included in     12,180       

federal taxable income;                                            12,181       

      (7)  Add any loss or deduct any gain resulting from sale,    12,183       

exchange, or other disposition of public obligations to the        12,184       

extent included in federal taxable income;                         12,185       

      (8)  Except in the case of the final return of an estate,    12,187       

add any amount deducted by the taxpayer on both its Ohio estate    12,188       

tax return pursuant to section 5731.14 of the Revised Code, and    12,189       

on its federal income tax return in determining either federal     12,190       

adjusted gross income or federal taxable income;                   12,191       

      (9)  Deduct any amount included in federal taxable income    12,193       

solely because the amount represents a reimbursement or refund of  12,194       

                                                          280    

                                                                 
expenses that in a previous year the decedent had deducted as an   12,195       

itemized deduction pursuant to section 63 of the Internal Revenue  12,196       

Code and applicable treasury regulations;                          12,197       

      (10)  Deduct any portion of the deduction described in       12,199       

section 1341(a)(2) of the Internal Revenue Code, for repaying      12,200       

previously reported income received under a claim of right, that   12,201       

meets both of the following requirements:                          12,202       

      (a)  It is allowable for repayment of an item that was       12,204       

included in the taxpayer's taxable income or the decedent's        12,205       

adjusted gross income for a prior taxable year and did not         12,206       

qualify for a credit under division (A) or (B) of section 5747.05  12,207       

of the Revised Code for that year.                                 12,208       

      (b)  It does not otherwise reduce the taxpayer's taxable     12,210       

income or the decedent's adjusted gross income for the current or  12,211       

any other taxable year.                                            12,212       

      (11)  Add any amount claimed as a credit under section       12,214       

5747.059 of the Revised Code to the extent that the amount         12,215       

satisfies either of the following:                                 12,216       

      (a)  The amount was deducted or excluded from the            12,218       

computation of the taxpayer's federal taxable income as required   12,219       

to be reported for the taxpayer's taxable year under the Internal  12,220       

Revenue Code;                                                                   

      (b)  The amount resulted in a reduction in the taxpayer's    12,222       

federal taxable income as required to be reported for any of the   12,223       

taxpayer's taxable years under the Internal Revenue CODE.          12,224       

      (T)  "School district income" and "school district income    12,226       

tax" have the same meanings as in section 5748.01 of the Revised   12,227       

Code.                                                              12,228       

      (U)  As used in divisions (A)(8), (A)(9), (S)(6), and        12,230       

(S)(7) of this section, "public obligations," "purchase            12,231       

obligations," and "interest or interest equivalent" have the same  12,232       

meanings as in section 5709.76 of the Revised Code.                12,233       

      (V)  "Limited liability company" means any limited           12,235       

liability company formed under Chapter 1705. of the Revised Code   12,236       

                                                          281    

                                                                 
or under the laws of any other state.                              12,237       

      (W)  "Pass-through entity investor" means any person who,    12,239       

during any portion of a taxable year of a pass-through entity, is  12,240       

a partner, member, shareholder, or investor in that pass-through   12,241       

entity.                                                                         

      (X)  "Banking day" has the same meaning as in section        12,243       

1304.01 of the Revised Code.                                       12,244       

      (Y)  "Month" means a calendar month.                         12,246       

      (Z)  "Quarter" means the first three months, the second      12,248       

three months, the third three months, or the last three months of  12,249       

the taxpayer's taxable year.                                                    

      (AA)  Any term used in this chapter that is not otherwise    12,251       

defined in this section and that is not used in a comparable       12,252       

context in the Internal Revenue Code and other statutes of the     12,253       

United States relating to federal income taxes has the same        12,254       

meaning as in section 5733.40 of the Revised Code.                 12,255       

      Sec. 5747.08.  An annual return with respect to the tax      12,264       

imposed by section 5747.02 of the Revised Code and each tax        12,265       

imposed under Chapter 5748. of the Revised Code shall be made by   12,266       

every taxpayer for any taxable year for which the taxpayer is      12,267       

liable for the tax imposed by that section or under that chapter,  12,268       

unless the total credits allowed under divisions (E), (F), and     12,269       

(G) of section 5747.05 of the Revised Code for the year are equal  12,270       

to or exceed the tax imposed by section 5747.02 of the Revised     12,271       

Code, in which case no return shall be required unless the         12,272       

taxpayer is liable for a tax imposed pursuant to Chapter 5748. of  12,273       

the Revised Code.                                                  12,274       

      (A)  If an individual is deceased, any return or notice      12,276       

required of that individual under this chapter shall be made and   12,277       

filed by that decedent's executor, administrator, or other person  12,279       

charged with the property of that decedent.                                     

      (B)  If an individual is unable to make a return or notice   12,281       

required by this chapter, the return or notice required of that    12,282       

individual shall be made and filed by the individual's duly        12,283       

                                                          282    

                                                                 
authorized agent, guardian, conservator, fiduciary, or other       12,284       

person charged with the care of the person or property of that     12,285       

individual.                                                                     

      (C)  Returns or notices required of an estate or a trust     12,287       

shall be made and filed by the fiduciary of the estate or trust.   12,288       

      (D)(1)  Any (a)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION    12,291       

(D)(1)(b) OF THIS SECTION, ANY pass-through entity having two or   12,293       

more nonresident pass-through entity investors who derive no       12,294       

taxable income from this state, other than a distributive share    12,295       

of the pass-through entity income, may file a single return on     12,296       

behalf of all or some of those pass-through entity ONE OR MORE OF  12,298       

THE ENTITY'S investors who are individuals or estates OTHER THAN   12,300       

AN INVESTOR THAT IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER      12,301       

SECTION 5733.06 OF THE REVISED CODE.  The single return shall set  12,302       

forth the name, address, and social security number of each OF     12,303       

THOSE pass-through entity investor of that nature INVESTORS and    12,305       

shall indicate the distributive share of each OF THOSE                          

pass-through entity investor's income taxable in this state in     12,307       

accordance with sections 5747.20 to 5747.231 of the Revised Code.  12,310       

Such nonresident pass-through entity investors for whom the        12,311       

pass-through entity elects to file a single return are not         12,312       

entitled to the exemption or credit provided for by sections       12,313       

5747.02 and 5747.022 of the Revised Code; shall calculate the tax  12,315       

before business credits at the highest rate of tax set forth in    12,316       

section 5747.02 of the Revised Code for the taxable year for       12,318       

which the return is filed; and are entitled to only their          12,319       

distributive share of the business credits as defined in division  12,321       

(D)(2) of this section.  A single check drawn by the pass-through  12,322       

entity shall accompany the return in full payment of the tax due   12,324       

FOR SUCH INVESTORS OTHER THAN INVESTORS WHO ARE PERSONS SUBJECT    12,326       

TO THE TAX IMPOSED UNDER SECTION 5733.06 OF THE REVISED CODE.      12,327       

      (b)(i)  A PASS-THROUGH ENTITY SHALL NOT INCLUDE IN SUCH A    12,330       

SINGLE RETURN ANY INVESTOR THAT IS A TRUST TO THE EXTENT THAT ANY  12,331       

DIRECT OR INDIRECT CURRENT, FUTURE, OR CONTINGENT BENEFICIARY OF   12,332       

                                                          283    

                                                                 
THE TRUST IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER SECTION     12,333       

5733.06 OF THE REVISED CODE.                                       12,334       

      (ii)  A PASS-THROUGH ENTITY SHALL NOT INCLUDE IN SUCH A      12,337       

SINGLE RETURN ANY INVESTOR THAT IS ITSELF A PASS-THROUGH ENTITY    12,338       

TO THE EXTENT THAT ANY DIRECT OR INDIRECT INVESTOR IN THE SECOND   12,339       

PASS-THROUGH ENTITY IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER   12,340       

SECTION 5733.06 OF THE REVISED CODE.                               12,341       

      (c)  NOTHING IN DIVISION (D) OF THIS SECTION PRECLUDES THE   12,345       

TAX COMMISSIONER FROM REQUIRING SUCH INVESTORS TO FILE THE RETURN  12,346       

AND MAKE THE PAYMENT OF TAXES AND RELATED INTEREST, PENALTY, AND   12,347       

INTEREST PENALTY REQUIRED BY THIS SECTION OR SECTION 5747.02,      12,348       

5747.09, OR 5747.15 OF THE REVISED CODE.  NOTHING IN DIVISION (D)  12,350       

OF THIS SECTION SHALL BE CONSTRUED TO PROVIDE TO SUCH AN INVESTOR  12,351       

OR PASS-THROUGH ENTITY ANY ADDITIONAL DEDUCTION OR CREDIT, OTHER   12,352       

THAN THE CREDIT PROVIDED BY DIVISION (J) OF THIS SECTION, SOLELY   12,354       

ON ACCOUNT OF THE ENTITY'S FILING A RETURN IN ACCORDANCE WITH      12,355       

THIS SECTION.  Such a pass-through entity also shall make the      12,356       

filing and payment of estimated taxes on behalf of those           12,357       

nonresident THE pass-through entity investors OTHER THAN AN        12,358       

INVESTOR THAT IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER         12,359       

SECTION 5733.06 OF THE REVISED CODE.                               12,360       

      (2)  For the purposes of this section, "business credits"    12,363       

means the credits listed in section 5747.98 of the Revised Code    12,366       

excluding the following credits:                                   12,367       

      (a)  The retirement credit under division (B) of section     12,370       

5747.055 of the Revised Code;                                      12,372       

      (b)  The senior citizen credit under division (C) of         12,375       

section 5747.05 of the Revised Code;                               12,377       

      (c)  The lump sum distribution credit under division (D) of  12,380       

section 5747.05 of the Revised Code;                               12,382       

      (d)  The dependent care credit under section 5747.054 of     12,385       

the Revised Code;                                                  12,386       

      (e)  The lump sum retirement income credit under division    12,389       

(C) of section 5747.055 of the Revised Code;                       12,391       

                                                          284    

                                                                 
      (f)  The lump sum retirement income credit under division    12,394       

(D) of section 5747.055 of the Revised Code;                       12,396       

      (g)  The lump sum retirement income credit under division    12,399       

(E) of section 5747.055 of the Revised Code;                       12,401       

      (h)  The credit for displaced workers who pay for job        12,404       

training under section 5747.27 of the Revised Code;                12,406       

      (i)  The twenty-dollar personal exemption credit under       12,409       

section 5747.022 of the Revised Code;                              12,411       

      (j) The joint filing credit under division (G) of section    12,414       

5747.05 of the Revised Code;                                       12,416       

      (k)  The nonresident credit under division (A) of section    12,419       

5747.05 of the Revised Code;                                       12,421       

      (l)  The credit for a resident's out-of-state income under   12,424       

division (B) of section 5747.05 of the Revised Code.               12,427       

      (3)  The election provided for under division (D) of this    12,430       

section applies only to the taxable year for which the election    12,431       

is made by the pass-through entity.  Unless the tax commissioner   12,432       

provides otherwise, this election, once made, is binding and       12,433       

irrevocable for the taxable year for which the election is made.   12,434       

Nothing in this division shall be construed to provide for any     12,435       

deduction or credit that would not be allowable if a nonresident   12,436       

pass-through entity investor were to file an annual return.        12,437       

      (4)  If a pass-through entity makes the election provided    12,439       

for under division (D) of this section, the pass-through entity    12,441       

shall be liable for any additional taxes, interest, interest       12,442       

penalty, or penalties imposed by this chapter if the tax           12,444       

commissioner determines that the single return does not reflect    12,445       

the correct tax due by nonresident pass-through entity investors   12,446       

covered by that return.  Nothing in this division shall be         12,447       

construed to limit or alter the liability, if any, imposed on      12,448       

pass-through entity investors for unpaid or underpaid taxes,       12,449       

interest, interest penalty, or penalties as a result of the                     

pass-through entity's making the election provided for under       12,450       

division (D) of this section.  For the purposes of division (D)    12,453       

                                                          285    

                                                                 
of this section, "correct tax due" means the tax that would have   12,454       

been paid by the pass-through entity had the single return been    12,455       

filed in a manner reflecting and including the findings and        12,456       

determinations made by the tax commissioner.  Nothing in division  12,458       

(D) of this section shall be construed to make or hold a           12,459       

pass-through entity liable for tax attributable to a pass-through  12,460       

entity investor's income from a source other than the              12,461       

pass-through entity electing to file the single return.            12,462       

      (E)  If a husband and wife file a joint federal income tax   12,464       

return for a taxable year, they shall file a joint return under    12,465       

this section for that taxable year, and their liabilities are      12,466       

joint and several, but, if the federal income tax liability of     12,467       

either spouse is determined on a separate federal income tax       12,468       

return, they shall file separate returns under this section.       12,469       

      If either spouse is not required to file a federal income    12,471       

tax return and either or both are required to file a return        12,472       

pursuant to this chapter, they may elect to file separate or       12,473       

joint returns, and, pursuant to that election, their liabilities   12,474       

are separate or joint and several.  If a husband and wife file     12,475       

separate returns pursuant to this chapter, each must claim the     12,476       

taxpayer's own exemption, but not both, as authorized under        12,477       

section 5747.02 of the Revised Code on the taxpayer's own return.  12,480       

      (F)  Each return or notice required to be filed under this   12,482       

section shall contain the signature of the taxpayer or the         12,484       

taxpayer's duly authorized agent and of the person who prepared    12,485       

the return for the taxpayer, and shall include the taxpayer's      12,486       

social security number.  Each return shall be verified by a        12,487       

declaration under the penalties of perjury.  The tax commissioner  12,488       

shall prescribe the form that the signature and declaration shall  12,489       

take.                                                                           

      (G)  Each return or notice required to be filed under this   12,491       

section shall be made and filed as required by section 5747.04 of  12,492       

the Revised Code, on or before the fifteenth day of April of each  12,493       

year, on forms that the tax commissioner shall prescribe,          12,494       

                                                          286    

                                                                 
together with remittance made payable to the treasurer of state    12,495       

in the combined amount of the state and all school district        12,496       

income taxes shown to be due on the form, unless the combined      12,497       

amount shown to be due is one dollar or less, in which case that   12,498       

amount need not be remitted.  Returns for taxable years for which  12,501       

a reduction in the tax due is made under division (B) of section   12,502       

5747.02 of the Revised Code shall include the following            12,504       

statement:  "The tax on this line reflects a.....% (here enter     12,505       

the percentage reduction described in division (B) of section      12,506       

5747.02 of the Revised Code) reduction under legislation enacted   12,508       

by the General Assembly requiring the return of excess state       12,511       

revenue to taxpayers."  The statement shall appear in boldface     12,512       

type and shall be placed in a prominent location on the return in  12,513       

the vicinity of the location where the amount of tax due, before   12,514       

any credits or amounts withheld, is entered.                       12,515       

      Upon good cause shown, the commissioner may extend the       12,517       

period for filing any notice or return required to be filed under  12,518       

this section and may adopt rules relating to extensions.  If the   12,519       

extension results in an extension of time for the payment of any   12,520       

state or school district income tax liability with respect to      12,521       

which the return is filed, the taxpayer shall pay at the time the  12,522       

tax liability is paid an amount of interest computed at the rate   12,523       

per annum prescribed by section 5703.47 of the Revised Code on     12,524       

that liability from the time that payment is due without           12,525       

extension to the time of actual payment.  In addition to all       12,526       

other interest charges and penalties, all taxes imposed by         12,527       

section 5747.02 of the Revised Code or under THIS CHAPTER OR       12,528       

Chapter 5748. of the Revised Code and remaining unpaid after they  12,531       

become due, except combined amounts due of one dollar or less,     12,532       

bear interest at the rate per annum prescribed by section 5703.47  12,533       

of the Revised Code until paid or until the day an assessment is   12,534       

issued under section 5747.13 of the Revised Code, whichever                     

occurs first.  If the commissioner considers it necessary in       12,537       

order to ensure the payment of the tax imposed by section 5747.02  12,538       

                                                          287    

                                                                 
of the Revised Code or any tax imposed under Chapter 5748. of the  12,539       

Revised Code, the commissioner may require returns and payments    12,540       

to be made otherwise than as provided in this section.             12,541       

      (H)  If any report, claim, statement, or other document      12,543       

required to be filed, or any payment required to be made, within   12,544       

a prescribed period or on or before a prescribed date under this   12,545       

chapter is delivered after that period or that date by United      12,546       

States mail to the agency, officer, or office with which the       12,547       

report, claim, statement, or other document is required to be      12,548       

filed, or to which the payment is required to be made, the date    12,549       

of the postmark stamped on the cover in which the report, claim,   12,550       

statement, or other document, or payment is mailed shall be        12,551       

deemed to be the date of delivery or the date of payment.          12,552       

      If a payment is required to be made by electronic funds      12,554       

transfer pursuant to section 5747.072 of the Revised Code, the     12,555       

payment is considered to be made when the payment is received by   12,556       

the treasurer of state or credited to an account designated by     12,557       

the treasurer of state for the receipt of tax payments.            12,558       

      "The date of the postmark" means, in the event there is      12,561       

more than one date on the cover, the earliest date imprinted on    12,562       

the cover by the United States postal service.                                  

      (I)  The amounts withheld by the employer pursuant to        12,564       

section 5747.06 of the Revised Code shall be allowed to the        12,565       

recipient of the compensation as credits against payment of the    12,566       

appropriate taxes imposed on the recipient by section 5747.02 and  12,568       

under Chapter 5748. of the Revised Code.                                        

      (J)  IF, IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION, A  12,572       

PASS-THROUGH ENTITY ELECTS TO FILE A SINGLE RETURN AND IF ANY      12,573       

INVESTOR IS REQUIRED TO FILE THE RETURN AND MAKE THE PAYMENT OF    12,574       

TAXES REQUIRED BY THIS CHAPTER ON ACCOUNT OF THE INVESTOR'S OTHER  12,575       

INCOME THAT IS NOT INCLUDED IN A SINGLE RETURN FILED BY A          12,576       

PASS-THROUGH ENTITY, THE INVESTOR IS ENTITLED TO A REFUNDABLE      12,577       

CREDIT EQUAL TO THE INVESTOR'S PROPORTIONATE SHARE OF THE TAX      12,578       

PAID BY THE PASS-THROUGH ENTITY ON BEHALF OF THE INVESTOR.  THE    12,579       

                                                          288    

                                                                 
INVESTOR SHALL CLAIM THE CREDIT FOR THE INVESTOR'S TAXABLE YEAR    12,580       

IN WHICH OR WITH WHICH ENDS THE TAXABLE YEAR OF THE PASS-THROUGH   12,581       

ENTITY.  NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO ALLOW ANY   12,582       

CREDIT PROVIDED IN THIS CHAPTER TO BE CLAIMED MORE THAN ONCE.      12,583       

FOR THE PURPOSES OF COMPUTING ANY INTEREST, PENALTY, OR INTEREST   12,584       

PENALTY, THE INVESTOR SHALL BE DEEMED TO HAVE PAID THE REFUNDABLE  12,585       

CREDIT PROVIDED BY THIS DIVISION ON THE DAY THAT THE PASS-THROUGH  12,586       

ENTITY PAID THE ESTIMATED TAX OR THE TAX GIVING RISE TO THE        12,587       

CREDIT.                                                                         

      Sec. 5747.401.  (A)(1)  EXCEPT AS OTHERWISE PROVIDED IN      12,590       

DIVISION (B) OF THIS SECTION, FOR THE PURPOSES OF SECTIONS         12,592       

5733.40, 5733.401, 5733.402, 5733.41, AND 5747.40 TO 5747.457 OF   12,593       

THE REVISED CODE, THE INVESTORS IN AN INVESTMENT PASS-THROUGH      12,595       

ENTITY AS DEFINED IN SECTION 5733.401 OF THE REVISED CODE,         12,596       

HEREINAFTER THE "DEEMED INVESTORS," SHALL BE DEEMED TO BE          12,597       

INVESTORS IN ANY OTHER PASS-THROUGH ENTITY IN WHICH THE            12,598       

INVESTMENT PASS-THROUGH ENTITY IS A DIRECT INVESTOR WITHOUT        12,599       

REGARD TO SECTIONS 5733.057 OR 5747.231 OF THE REVISED CODE.       12,600       

EACH DEEMED INVESTOR'S PORTION OF SUCH OTHER PASS-THROUGH          12,601       

ENTITY'S ADJUSTED QUALIFYING AMOUNT SHALL BE THE ADJUSTED          12,602       

QUALIFYING AMOUNT THAT, WITHOUT REGARD TO THIS SECTION, PASSES     12,603       

THROUGH FROM SUCH OTHER PASS-THROUGH ENTITY TO THE INVESTMENT      12,604       

PASS-THROUGH ENTITY MULTIPLIED BY THE PERCENTAGE OF THE DEEMED     12,605       

INVESTOR'S DIRECT OWNERSHIP IN THE INVESTMENT PASS-THROUGH ENTITY  12,606       

WITHOUT REGARD TO SECTIONS 5733.057 OR 5747.231 OF THE REVISED     12,608       

CODE.                                                                           

      (2)  FOR THE PURPOSES OF SECTIONS 5733.40, 5733.401,         12,611       

5733.402, 5733.41, AND 5747.40 TO 5747.457 OF THE REVISED CODE,    12,612       

THE INVESTMENT PASS-THROUGH ENTITY SHALL NOT BE DEEMED TO BE AN    12,613       

INVESTOR IN SUCH OTHER PASS-THROUGH ENTITY.                        12,614       

      (3)  IF THE TAXABLE YEAR OF THE INVESTMENT PASS-THROUGH      12,616       

ENTITY ENDS ON A DAY OTHER THAN THE LAST DAY OF SUCH OTHER         12,617       

PASS-THROUGH ENTITY'S TAXABLE YEAR, DIVISION (A)(1) OF THIS        12,619       

SECTION APPLIES TO THOSE PERSONS WHO ARE INVESTORS IN THE          12,620       

                                                          289    

                                                                 
INVESTMENT PASS-THROUGH ENTITY ON THE LAST DAY OF SUCH OTHER       12,621       

PASS-THROUGH ENTITY'S TAXABLE YEAR ENDING WITHIN THE INVESTMENT    12,622       

PASS-THROUGH ENTITY'S TAXABLE YEAR.                                12,623       

      (B)  DIVISION (A) OF THIS SECTION APPLIES ONLY TO THE        12,627       

EXTENT TO WHICH THE INVESTMENT PASS-THROUGH ENTITY PROVIDES ON A   12,628       

TIMELY BASIS TO SUCH OTHER PASS-THROUGH ENTITY THE NAME, ADDRESS,  12,629       

AND SOCIAL SECURITY NUMBER OR FEDERAL IDENTIFICATION NUMBER FOR    12,630       

EACH DIRECT INVESTOR IN THE INVESTMENT PASS-THROUGH ENTITY         12,631       

WITHOUT REGARD TO SECTIONS 5733.057 AND 5747.231 OF THE REVISED    12,632       

CODE.  ONCE SUCH OTHER PASS-THROUGH ENTITY RECEIVES SUCH           12,633       

INFORMATION FROM THE INVESTMENT PASS-THROUGH ENTITY, DIVISION (A)  12,635       

OF THIS SECTION APPLIES FOR SUCH OTHER PASS-THROUGH ENTITY'S       12,636       

TAXABLE YEAR UNLESS THE TAX COMMISSIONER PERMITS THE INVESTMENT    12,637       

PASS-THROUGH ENTITY TO REVOKE THE NOTICE THAT THE INVESTMENT       12,638       

PASS-THROUGH ENTITY PREVIOUSLY PROVIDED TO SUCH OTHER              12,639       

PASS-THROUGH ENTITY.                                                            

      Sec. 5747.43.  (A)  As used in this section:                 12,648       

      (1)  "Estimated taxes" means the amount that a qualifying    12,651       

entity estimates to be the sum of its liability under sections     12,652       

5733.41 and 5747.41 of the Revised Code for its current            12,653       

qualifying taxable year.                                                        

      (2)  "Tax liability" means the total of the taxes and        12,656       

withholding taxes due under sections 5733.41 and 5747.41 of the    12,657       

Revised Code for the qualifying taxable year prior to applying     12,658       

any estimated tax payment or refund from another year.                          

      (3)  "Taxes paid" includes payments of estimated taxes made  12,660       

under division (C) of this section and tax refunds applied by the  12,661       

qualifying entity in payment of estimated taxes.                   12,662       

      (B)  In addition to the return required to be filed          12,664       

pursuant to section 5747.42 of the Revised Code, each qualifying   12,665       

entity subject to the tax imposed under section 5733.41 and to     12,667       

the withholding tax imposed by section 5747.41 of the Revised                   

Code shall file an estimated tax return and pay a portion of the   12,668       

qualifying entity's tax liability for its qualifying taxable       12,669       

                                                          290    

                                                                 
year.  The portion of those taxes required to be paid, and the     12,671       

last day prescribed for payment thereof, shall be as prescribed                 

by divisions (B)(1), (2), (3), and (4) of this section:            12,672       

      (1)  On or before the fifteenth day of the month following   12,674       

the last day of the first quarter of the qualifying entity's       12,675       

qualifying taxable year, twenty-two and one-half per cent of the   12,676       

qualifying entity's estimated tax liability for that taxable       12,677       

year;                                                                           

      (2)  On or before the fifteenth day of the month following   12,679       

the last day of the second quarter of the qualifying entity's      12,680       

qualifying taxable year, forty-five per cent of the qualifying     12,681       

entity's estimated tax liability for that taxable year;            12,682       

      (3)  On or before the fifteenth day of the month following   12,684       

the last day of the third quarter of the qualifying entity's       12,685       

qualifying taxable year, sixty-seven and one-half per cent of the  12,686       

qualifying entity's estimated tax liability for that taxable       12,687       

year;                                                                           

      (4)  On or before the fifteenth day of the month following   12,689       

the last day of the fourth quarter of the qualifying entity's      12,690       

qualifying taxable year, ninety per cent of the qualifying         12,691       

entity's estimated tax liability for that taxable year.                         

      Payments of estimated taxes shall be made payable to the     12,693       

treasurer of state.                                                             

      (C)  If a payment of estimated taxes is not paid in the      12,695       

full amount required under division (B) of this section, a         12,696       

penalty shall be added to the taxes charged for the qualifying     12,697       

taxable year unless the underpayment is due to reasonable cause    12,698       

as described in division (D) of this section.  The penalty shall   12,699       

accrue at the rate per annum prescribed by section 5703.47 of the               

Revised Code upon the amount of underpayment from the day the      12,700       

estimated payment was required to be made to the day the payment   12,701       

is made.                                                                        

      The amount of the underpayment upon which the penalty shall  12,703       

accrue shall be determined as follows:                             12,704       

                                                          291    

                                                                 
      (1)  For the first payment of estimated taxes each year,     12,706       

twenty-two and one-half per cent of the tax liability less the     12,707       

amount of taxes paid by the date prescribed for that payment;      12,708       

      (2)  For the second payment of estimated taxes each year,    12,710       

forty-five per cent of the tax liability less the amount of taxes  12,711       

paid by the date prescribed for that payment;                      12,712       

      (3)  For the third payment of estimated taxes each year,     12,714       

sixty-seven and one-half per cent of the tax liability less the    12,715       

amount of taxes paid by the date prescribed for that payment;      12,716       

      (4)  For the fourth payment of estimated taxes each year,    12,718       

ninety per cent of the tax liability less the amount of taxes      12,719       

paid by the date prescribed for that payment.                      12,720       

      For the purposes of this section, a payment of estimated     12,722       

taxes on or before any payment date shall be considered a payment  12,723       

of a previous underpayment only to the extent the payment of       12,724       

estimated taxes exceeds the amount of the payment presently        12,725       

required to be paid to avoid any penalty.                                       

      The penalty imposed under division (C) of this section is    12,727       

in lieu of any other interest charge or penalty imposed for        12,728       

failure to file a declaration of estimated tax report and make     12,729       

estimated payments as required by this section.                                 

      (D)  An underpayment of estimated taxes determined under     12,731       

division (C) of this section is due to reasonable cause if any of  12,732       

the following apply:                                                            

      (1)  The amount of tax that was paid equals at least ninety  12,734       

per cent of the tax liability for the current qualifying taxable   12,735       

year, determined by annualizing the income received during that    12,736       

year up to the end of the month immediately preceding the month    12,737       

in which the payment is due;                                                    

      (2)  The amount of tax liability that was paid equals at     12,739       

least ninety per cent of the tax liability for the current         12,740       

qualifying taxable year;                                                        

      (3)  The amount of tax liability that was paid equals at     12,742       

least one hundred per cent of the tax liability shown on the       12,743       

                                                          292    

                                                                 
return of the qualifying entity for the preceding qualifying       12,744       

taxable year, provided that the immediately preceding qualifying   12,745       

taxable year reflected a period of twelve months and the                        

qualifying entity filed a return under section 5747.42 of the      12,746       

Revised Code for that year.                                                     

      (E)(1)  DIVISIONS (B) AND (C) OF THIS SECTION DO NOT APPLY   12,751       

FOR A TAXABLE YEAR IF EITHER OF THE FOLLOWING APPLIES TO THE       12,752       

QUALIFYING ENTITY:                                                              

      (a)  FOR THE IMMEDIATELY PRECEDING TAXABLE YEAR, THE ENTITY  12,755       

COMPUTES IN GOOD FAITH AND IN A REASONABLE MANNER THAT THE SUM OF  12,756       

ITS ADJUSTED QUALIFYING AMOUNTS IS TEN THOUSAND DOLLARS OR LESS.   12,758       

      (b)  FOR THE TAXABLE YEAR THE ENTITY COMPUTES IN GOOD FAITH  12,761       

AND IN A REASONABLE MANNER THAT THE SUM OF ITS ADJUSTED            12,762       

QUALIFYING AMOUNTS IS TEN THOUSAND DOLLARS OR LESS.                12,763       

      (2)  NOTWITHSTANDING ANY OTHER PROVISION OF TITLE LVII OF    12,767       

THE REVISED CODE TO THE CONTRARY, THE ENTITY SHALL ESTABLISH BY A  12,768       

PREPONDERANCE OF THE EVIDENCE THAT ITS COMPUTATION OF THE          12,769       

ADJUSTED QUALIFYING AMOUNTS FOR THE IMMEDIATELY PRECEDING TAXABLE  12,770       

YEAR AND THE TAXABLE YEAR WAS, IN FACT, MADE IN GOOD FAITH AND IN  12,771       

A REASONABLE MANNER.                                               12,772       

      (F)  The tax commissioner may waive the requirement for      12,774       

filing a declaration of estimated taxes for any class of           12,776       

qualifying entities if the commissioner finds the waiver is        12,777       

reasonable and proper in view of administrative costs and other                 

factors.                                                           12,778       

      Sec. 5747.98.  (A)  To provide a uniform procedure for       12,787       

calculating the amount of tax due under section 5747.02 of the     12,788       

Revised Code, a taxpayer shall claim any credits to which the      12,789       

taxpayer is entitled in the following order:                       12,791       

      (1)  The retirement income credit under division (B) of      12,793       

section 5747.055 of the Revised Code;                              12,794       

      (2)  The senior citizen credit under division (C) of         12,796       

section 5747.05 of the Revised Code;                               12,797       

      (3)  The lump sum distribution credit under division (D) of  12,799       

                                                          293    

                                                                 
section 5747.05 of the Revised Code;                               12,800       

      (4)  The dependent care credit under section 5747.054 of     12,802       

the Revised Code;                                                  12,803       

      (5)  The lump sum retirement income credit under division    12,805       

(C) of section 5747.055 of the Revised Code;                       12,806       

      (6)  The lump sum retirement income credit under division    12,808       

(D) of section 5747.055 of the Revised Code;                       12,809       

      (7)  The lump sum retirement income credit under division    12,811       

(E) of section 5747.055 of the Revised Code;                       12,812       

      (8)  The credit for displaced workers who pay for job        12,814       

training under section 5747.27 of the Revised Code;                12,815       

      (9)  The campaign contribution credit under section 5747.29  12,817       

of the Revised Code;                                               12,818       

      (10)  The twenty-dollar personal exemption credit under      12,820       

section 5747.022 of the Revised Code;                              12,821       

      (11)  The joint filing credit under division (G) of section  12,824       

5747.05 of the Revised Code;                                                    

      (12)  The nonresident credit under division (A) of section   12,827       

5747.05 of the Revised Code;                                                    

      (13)  The credit for a resident's out-of-state income under  12,830       

division (B) of section 5747.05 of the Revised Code;                            

      (14)  The credit for employers that enter into agreements    12,833       

with child day-care centers under section 5747.34 of the Revised   12,834       

Code;                                                                           

      (15)  The credit for employers that reimburse employee       12,836       

child day-care expenses under section 5747.36 of the Revised       12,837       

Code;                                                                           

      (16)  The credit for manufacturing investments under         12,839       

section 5747.051 of the Revised Code;                              12,840       

      (17)  The credit for purchases of new manufacturing          12,842       

machinery and equipment under section 5747.26 or section 5747.261  12,844       

of the Revised Code;                                                            

      (18)  The second credit for purchases of new manufacturing   12,847       

machinery and equipment under section 5747.31 of the Revised       12,848       

                                                          294    

                                                                 
Code;                                                                           

      (19)  The enterprise zone credit under section 5709.66 of    12,850       

the Revised Code;                                                  12,851       

      (20)  The credit for the eligible costs associated with a    12,853       

voluntary action under section 5747.32 of the Revised Code;        12,855       

      (21)  The credit for employers that establish on-site child  12,858       

day-care centers under section 5747.35 of the Revised Code;        12,859       

      (22)  The credit for purchases of qualifying grape           12,861       

production property under section 5747.28 of the Revised Code;     12,862       

      (23)  The export sales credit under section 5747.057 of the  12,865       

Revised Code;                                                                   

      (24)  The credit for research and development and            12,867       

technology transfer investors under section 5747.33 of the         12,868       

Revised Code;                                                                   

      (25)  The enterprise zone credits under section 5709.65 of   12,871       

the Revised Code;                                                               

      (26)  The refundable jobs creation credit under section      12,874       

5747.058 of the Revised Code;                                                   

      (27)  The refundable credit for taxes paid by a qualifying   12,876       

entity granted under section 5747.059 of the Revised Code;         12,877       

      (28)  THE REFUNDABLE CREDITS FOR TAXES PAID BY A QUALIFYING  12,879       

PASS-THROUGH ENTITY GRANTED UNDER DIVISION (J) OF SECTION 5747.08  12,880       

OF THE REVISED CODE.                                                            

      (B)  For any credit except the refundable jobs creation      12,882       

credit and the refundable credit for taxes paid by a qualifying    12,883       

entity CREDITS ENUMERATED IN DIVISIONS (A)(26), (27), AND (28) OF  12,885       

THIS SECTION AND THE CREDIT GRANTED UNDER DIVISION (I) OF SECTION               

5747.08 OF THE REVISED CODE, the amount of the credit for a        12,886       

taxable year shall not exceed the tax due after allowing for any   12,887       

other credit that precedes it in the order required under this     12,888       

section.  Any excess amount of a particular credit may be carried  12,889       

forward if authorized under the section creating that credit.      12,890       

NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO ALLOW A TAXPAYER TO  12,891       

CLAIM, DIRECTLY OR INDIRECTLY, A CREDIT MORE THAN ONCE FOR A       12,892       

                                                          295    

                                                                 
TAXABLE YEAR.                                                                   

      Sec. 5907.15.  THERE IS HEREBY CREATED IN THE STATE          12,894       

TREASURY THE OHIO VETERANS HOME RENTAL AND SERVICE REVENUE FUND.   12,895       

REVENUE GENERATED FROM TEMPORARY USE AGREEMENTS OF THE HOME, FROM  12,897       

THE SALE OF MEALS AT THE HOME'S DINING HALLS, AND FROM RENTAL,     12,898       

LEASE, OR SHARING AGREEMENTS FOR THE USE OF FACILITIES, SUPPLIES,  12,899       

EQUIPMENT, UTILITIES, OR SERVICES PROVIDED BY THE HOME SHALL BE    12,900       

CREDITED TO THE FUND.  THE FUND SHALL BE USED ONLY FOR                          

MAINTENANCE COSTS OF THE HOME.                                     12,901       

      Section 2.  That existing sections 101.34, 101.70, 101.71,   12,904       

101.72, 101.73, 101.74, 101.75, 101.77, 101.78, 101.79, 121.60,    12,905       

121.61, 121.62, 121.63, 121.64, 121.65, 121.68, 121.69, 126.14,    12,906       

131.35, 133.06, 718.01, 3313.646, 3313.841, 3313.842, 3313.98,     12,908       

3314.03, 3314.07, 3314.08, 3317.01, 3317.013, 3317.02, 3317.021,   12,909       

3317.022, 3317.023, 3317.024, 3317.029, 3317.0212, 3317.0213,      12,910       

3317.0214, 3317.0215, 3317.0216, 3317.03, 3317.05, 3317.051,       12,911       

3317.06, 3317.082, 3317.10, 3317.11, 3317.161, 3317.19, 3318.06,   12,912       

3318.08, 3318.10, 3323.091, 3323.12, 3704.14, 3734.57, 3734.82,    12,913       

4123.40, 4701.10, 4701.20, 4743.05, 4745.01, 5711.22, 5733.04,                  

5733.05, 5733.057, 5733.0611, 5733.12, 5733.40, 5733.98, 5747.01,  12,914       

5747.08, 5747.43, and 5747.98, and section 5747.452 of the         12,916       

Revised Code are hereby repealed.  Existing Section 50.11 of Am.   12,918       

Sub. H.B. 215 of the 122nd General Assembly, as most recently      12,919       

amended by Am. Sub. H.B. 650 of the 122nd General Assembly, is     12,920       

hereby repealed.                                                                

      Section 3.  That Sections 20.05, 47.13, 58, 62.01, 67.08,    12,922       

119, 190, and 210 of Am. Sub. H.B. 215 of the 122nd General        12,924       

Assembly be amended to read as follows:                                         

      "Sec. 20.05.  Transfers to Central Service Agency Fund       12,926       

      The Director of Budget and Management may transfer up to     12,928       

$1,500,000 in fiscal year 1998 and up to $500,000 in fiscal year   12,929       

1999 from the Occupational Licensing and Regulatory Fund (Fund     12,930       

4K9) to the Central Service Agency Fund (Fund 115).  The cash      12,931       

transferred shall be used to purchase the necessary equipment,     12,932       

                                                          296    

                                                                 
products, and services to install a local area network for the     12,933       

professional licensing boards, to migrate their licensing          12,934       

applications to this network, and to provide for the ongoing       12,935       

operations of the network in fiscal year 1998 and fiscal year      12,936       

1999.  Appropriation authority equal to the cash transfer is       12,937       

hereby appropriated to line item 100-632, Central Service Agency.  12,939       

      The Director of Budget and Management may transfer up to     12,941       

$150,000 in fiscal year 1998 AND UP TO $150,000 IN FISCAL YEAR     12,942       

1999 from the Occupational Licensing and Regulatory Fund (Fund     12,944       

4K9) to the Central Service Agency Fund (Fund 115).  The cash      12,945       

shall be utilized as necessary to subsidize the operations of the  12,946       

Central Service Agency during the process of transition due to     12,947       

the Medical Board and the Pharmacy Board no longer using Central   12,948       

Service Agency services.                                                        

      The Director of Budget and Management shall transfer up to   12,950       

$20,000 in fiscal year 1998 from the Occupational Licensing and    12,951       

Regulatory Fund (Fund 4K9) to the Central Service Agency Fund      12,952       

(Fund 115).  The Office of Budget and Management shall conduct,    12,953       

or contract for the conduct of, a study examining the feasibility  12,955       

of consolidating the administrative process of licensing and       12,956       

regulating barbers and cosmetologists while respecting the         12,957       

separate identities of the two professions.  Appropriation                      

authority equal to the cash transfer is hereby appropriated to     12,959       

line item 100-632, Central Service Agency.                                      

      Sec. 47.13.  Minority Business Bonding Fund                  12,961       

      Notwithstanding Chapters 122., 169., and 175. of the         12,963       

Revised Code and other provisions of this act AM. SUB. H.B. 215    12,965       

OF THE 122nd GENERAL ASSEMBLY, the Director of Development may,    12,967       

upon the recommendation of the Minority Development Financing      12,968       

Advisory Board, pledge up to $10,000,000 in this biennium of       12,969       

unclaimed funds administered by the Director of Commerce and       12,970       

allocated to the Minority Business Bonding Program pursuant to     12,971       

section 169.05 of the Revised Code.  The transfer of any cash by   12,972       

the Director of Commerce from the Department of Commerce's         12,973       

                                                          297    

                                                                 
Unclaimed Funds Fund (Fund 543) to the Department of               12,974       

Development's Minority Business Bonding Fund (Fund 449) shall      12,975       

occur, if requested by the Director of Development, only if such   12,976       

funds are needed for payment of losses arising from the Minority   12,977       

Business Bonding Program, and only after the $2,700,000            12,978       

transferred to the Minority Business Bonding Fund by the           12,979       

Controlling Board in 1983 has been used for that purpose.  Moneys  12,980       

transferred by the Director of Commerce for this purpose may be    12,981       

moneys in custodial funds held by the Treasurer of State.  If      12,982       

expenditures are required for payment of losses arising from the   12,983       

Minority Business Bonding Program, such expenditures shall be      12,984       

made from appropriation item 195-623, Minority Business Bonding    12,985       

Contingency in the Minority Business Bonding Fund, and such        12,986       

amounts are hereby appropriated.                                   12,987       

      Minority Business Bonding Program Administration             12,989       

      Investment earnings of the Minority Business Bonding Fund    12,991       

(Fund 449), shall be credited to Minority Business Bonding         12,992       

Program Administration Fund (Fund 450).                            12,993       

      Ohio Minority Development Financing Advisory Board           12,995       

      The foregoing appropriation item 195-411, Minority           12,997       

Development Financing Advisory Board, shall be used to pay         12,998       

operating costs associated with the Minority Development           12,999       

Financing Advisory Board.                                          13,000       

      Minority Business Enterprise Loan                            13,002       

      Of the foregoing appropriation item 195-646, Minority        13,004       

Business Enterprise Loan (Fund 4W1), not less than $500,000 in     13,006       

each fiscal year shall be used to fund the Ohio Mini-Loan                       

Guarantee Program to make loan guarantees to small businesses in   13,007       

an amount not to exceed fifty per cent of the total capital cost   13,008       

of the project being assisted.  In each fiscal year, no more than  13,009       

$400,000 shall be used to pay up to 50 per cent of the operating   13,010       

costs of the Minority Development Financing Advisory Board.        13,011       

      In fiscal year 1998 DURING THE 1997-1999 BIENNIUM, the       13,013       

Director of Development shall use $250,000 from appropriation      13,015       

                                                          298    

                                                                 
item 195-646, Minority Business Enterprise Loan, to study          13,016       

minority businesses to identify current minority business needs    13,017       

and to determine how to improve Department of Development          13,018       

services for minority businesses that would promote economic       13,019       

development throughout the state.                                               

      All loan repayments from the Minority Development Financing  13,021       

Advisory Board loan program and the Ohio Mini-Loan Guarantee       13,022       

Program shall be deposited in the State Treasury, to the credit    13,023       

of the Minority Enterprise Loan Fund (Fund 4W1).                   13,024       

      Sec. 58.  EPA  ENVIRONMENTAL PROTECTION AGENCY               13,026       

General Revenue Fund                                               13,028       

GRF 716-321 Central                                                13,031       

            Administration        $    3,688,765 $    3,780,221    13,033       

                                                      3,865,221    13,034       

GRF 717-321 Water Quality                                          13,036       

            Planning and                                                        

            Assessment            $    7,783,614 $    8,133,514    13,038       

                                       7,748,614                   13,039       

GRF 718-321 Ground Water          $    1,035,597 $    1,098,797    13,043       

GRF 719-321 Air Pollution Control $    2,608,893 $    2,673,946    13,047       

GRF 721-321 Public Water System                                    13,049       

            Supervision           $    2,857,608 $    2,939,948    13,051       

GRF 724-321 Pollution Prevention  $      630,799 $      630,799    13,055       

GRF 725-321 Laboratory            $    1,116,505 $    1,145,330    13,059       

GRF 726-321 Corrective Actions    $      304,462 $      281,279    13,063       

GRF 715-501 Local Air Pollution                                    13,065       

            Control               $    1,398,489 $    1,437,647    13,067       

GRF 715-503 Science Advisory                                       13,069       

            Program               $      500,000 $      500,000    13,071       

                                         450,000                   13,072       

GRF 715-504 Special Sanitary                                       13,074       

            District Distress                                                   

            Fund                  $    3,000,000 $            0    13,076       

TOTAL GRF General Revenue Fund    $   24,924,732 $   22,621,481    13,079       

                                                          299    

                                                                 
                                      24,839,732     22,706,481    13,080       

General Services Fund Group                                        13,083       

199 715-602 Laboratory Services   $      700,000 $      700,000    13,088       

4A1 715-640 Sale of Goods and                                      13,090       

            Services              $    3,148,826 $    3,148,680    13,092       

491 715-665 MOVING EXPENSES       $            0 $    1,358,168    13,096       

TOTAL GSF General Services                                         13,097       

   Fund Group                     $    3,848,826 $    3,848,680    13,100       

                                                      5,206,848    13,101       

Federal Special Revenue Fund Group                                 13,104       

3F2 715-630 State Revolving Loan                                   13,107       

            Fund - Operating                                                    

            Expenses              $    3,733,024 $    3,821,161    13,109       

3F3 715-632 PCB Toxics            $    3,584,637 $    3,571,485    13,113       

3F4 715-633 Water Quality                                          13,115       

            Management            $      934,238 $      624,238    13,117       

3F5 715-641 Nonpoint Source                                        13,119       

            Pollution Management  $    4,339,154 $    4,197,440    13,121       

3J1 715-620 Urban Stormwater      $      461,309 $      589,109    13,125       

3J5 715-615 Maumee River          $    1,183,511 $      600,734    13,129       

3K2 715-628 Clean Water Act 106   $    2,535,049 $    2,784,249    13,133       

3K3 715-637 DOE Agreement in                                       13,135       

            Principle             $    1,932,687 $    1,988,973    13,137       

3K4 715-634 DOD Base                                               13,139       

            Realignment/Closure                                                 

            Grant                 $      861,500 $      861,500    13,141       

3K6 715-639 Remedial Action Plan  $      510,493 $      723,887    13,145       

3M5 715-652 Haz Mat Transport                                      13,147       

            Uniform Safety        $      268,745 $      276,707    13,149       

3N1 715-655 Pollution Prevention                                   13,151       

            Grants                $       90,000 $       90,000    13,153       

3N4 715-657 DOE Cost Recovery                                      13,155       

            Grants                $    3,098,920 $    3,137,675    13,157       

352 715-611 Wastewater Pollution  $      349,132 $      395,000    13,161       

                                                          300    

                                                                 
353 715-612 Public Water Supply   $    2,308,500 $    2,308,500    13,165       

354 715-614 Hazardous Waste                                        13,167       

            Management            $    4,678,123 $    4,678,123    13,169       

356 715-616 Indirect Costs        $    3,600,000 $    3,600,000    13,173       

357 715-619 Air Pollution Control $    3,074,005 $    2,876,047    13,177       

362 715-605 Underground Injection                                  13,179       

            Control               $      119,000 $      119,000    13,181       

TOTAL FED Federal Special Revenue                                  13,182       

   Fund Group                     $   37,662,027 $   37,243,828    13,185       

State Special Revenue Fund Group                                   13,188       

4C3 715-647 Central Support                                        13,191       

            Indirect              $    7,254,006 $    7,437,442    13,193       

4D7 715-603 Natural Resources                                      13,195       

            Damage Assessment     $       86,610 $       86,610    13,197       

4G3 715-618 Jennison Wright                                        13,199       

            Cleanup               $      140,352 $      140,352    13,201       

4J0 715-638 Underground Injection                                  13,203       

            Control               $      321,139 $      329,488    13,205       

4K2 715-648 Clean Air             $    1,863,000 $    1,863,000    13,209       

4K3 715-649 Solid Waste           $    9,960,931 $    9,037,732    13,213       

4K4 715-650 Surface Water                                          13,215       

            Protection            $    6,985,194 $    6,985,194    13,217       

4K5 715-651 Drinking Water                                         13,219       

            Protection            $    4,799,522 $    3,945,546    13,221       

4P5 715-654 Cozart Landfill       $      130,000 $      130,000    13,225       

4R5 715-656 Scrap Tire Management $    4,255,459 $    4,243,359    13,229       

4R9 715-658 Voluntary Action                                       13,231       

            Program               $    1,345,567 $    1,269,754    13,233       

4T3 715-659 Title V Permit                                         13,235       

            Program               $   11,000,000 $   10,900,000    13,237       

4U7 715-660 Construction &                                         13,239       

            Demolition Debris     $      300,160 $      300,160    13,241       

4V8 715-663 Microdot Settlement   $       40,000 $            0    13,245       

500 715-608 Immediate Removal                                      13,247       

                                                          301    

                                                                 
            Special Account       $      591,800 $      599,639    13,249       

503 715-621 Hazardous Waste                                        13,251       

            Facility Management   $    7,580,537 $    7,901,421    13,253       

503 715-661 Hazardous Waste                                        13,255       

            Facility Cleanup      $    3,123,667 $    3,173,266    13,257       

503 715-662 Hazardous Waste                                        13,259       

            Facility Board        $      796,573 $      810,122    13,261       

505 715-623 Hazardous Waste                                        13,263       

            Clean-up              $   18,444,873 $   17,852,771    13,265       

6A1 715-645 Environmental                                          13,267       

            Education             $    2,119,976 $    2,125,114    13,269       

602 715-626 Motor Vehicle                                          13,271       

            Inspection and                                                      

            Maintenance           $    2,301,013 $    2,390,569    13,273       

644 715-631 ER Radiological                                        13,275       

            Safety                $      198,095 $      190,451    13,277       

660 715-629 Infectious Wastes                                      13,279       

            Management            $      179,630 $      120,480    13,281       

678 715-635 Air Toxic Release     $      272,236 $      290,016    13,285       

679 715-636 Emergency Planning    $    1,799,000 $    1,849,372    13,289       

676 715-642 Water Pollution                                        13,291       

            Control Loan                                                        

            Administration        $            0 $    1,060,000    13,293       

696 715-643 Air Pollution Control                                  13,295       

            Administration        $      740,000 $      750,000    13,297       

699 715-644 Water Pollution                                        13,299       

            Control                                                             

            Administration        $      500,000 $      500,000    13,301       

TOTAL SSR State Special Revenue                                    13,302       

   Fund Group                     $   87,129,340 $   86,281,858    13,305       

TOTAL ALL BUDGET FUND GROUPS      $  153,564,925 $  149,995,847    13,308       

                                     153,479,925    151,439,015    13,309       

      Cash Transfer from Hazardous Waste Funds to Solid Waste      13,312       

Fund                                                                            

                                                          302    

                                                                 
      Notwithstanding any other provision of law to the contrary,  13,314       

the Director of Budget and Management shall transfer $882,619      13,315       

cash from Fund 503, Hazardous Waste Facility Management and        13,316       

$882,619 from Fund 505, Hazardous Waste Clean-up, to Fund 4K3,     13,318       

Solid Waste.                                                                    

      Special Sanitary District Distress Fund                      13,320       

      Of the foregoing appropriation item, GRF 715-504, Special    13,322       

Sanitary District Distress Fund, $3,000,000 in fiscal year 1998    13,323       

shall be used exclusively to abate or correct unsanitary           13,324       

conditions in a special sanitary district created under section    13,325       

1541.21 of the Revised Code concerning which the Director of       13,326       

Environmental Protection has issued proposed Administrative        13,327       

Orders prior to April 1994, but has not issued Final               13,328       

Administrative Orders.  The Special Sanitary District Distress     13,329       

Fund shall be abolished on June 30, 1999, or whenever the balance  13,331       

in the fund is $0, whichever occurs earlier.                                    

      Area-Wide Planning Agencies                                  13,333       

      Of the foregoing appropriation item, GRF 717-321, Water      13,335       

Quality Planning and Assessment, $450,000 in fiscal year 1998 and  13,336       

$450,000 in fiscal year 1999 shall be divided evenly between the   13,337       

following six area-wide planning agencies: Eastgate Development    13,338       

and Transportation Agency, Toledo Metropolitan Area Council of     13,339       

Governments, Northeast Ohio Four County Regional Planning and      13,340       

Development Organization, Northeast Ohio Areawide Coordinating     13,341       

Agency, Ohio-Kentucky-Indiana Regional Council of Governments,     13,342       

and Miami Valley Regional Planning Commission.                     13,343       

      Hazardous Waste Study Committee                              13,345       

      The Director of Environmental Protection shall review the    13,347       

funding needs and program activities of the Division of Hazardous  13,349       

Waste Management and the Division of Emergency and Remedial        13,350       

Response and present that information to an advisory committee     13,351       

established by the Director.  The committee shall be composed of   13,352       

three representatives of the Environmental Protection Agency, two  13,353       

representatives of permitted hazardous waste facilities, two       13,354       

                                                          303    

                                                                 
representatives of industry involved in emergency and remedial     13,355       

response, and two representatives of state-wide environmental      13,356       

advocacy organizations.  The committee shall make recommendations  13,357       

to the Director regarding funding needs and program activities.    13,358       

The Director shall report the committee's recommendations to the   13,359       

Speaker of the House of Representatives and the President of the   13,360       

Senate not later than October 1, 1998.                             13,361       

      Scrap Tire Program                                           13,363       

      Of the foregoing appropriation item Fund 4R5, 715-656 Scrap  13,365       

Tire Management, $400,000 in fiscal year 1998 and $400,000 in      13,366       

fiscal year 1999 shall be used to fund a tire development and      13,367       

reprocessing project.                                              13,368       

      Harrison County Garage Environmental Assessment              13,370       

      Of the foregoing appropriation item GRF 726-321, Corrective  13,373       

Actions, $30,000 in fiscal year 1998 shall be used to fund the     13,374       

Harrison County Garage environmental assessment.                                

      MOVING EXPENSES                                              13,376       

      THERE IS HEREBY CREATED IN THE STATE TREASURY THE MOVING     13,379       

EXPENSES FUND.  THE FUND SHALL CONSIST OF CASH BALANCES                         

TRANSFERRED FROM EXISTING FUNDS NOT ALREADY OBLIGATED TO PAY       13,380       

EXISTING OBLIGATIONS.  THE FUND SHALL BE USED TO PAY THE MOVING    13,381       

EXPENSES OF THE ENVIRONMENTAL PROTECTION AGENCY INTO NEW           13,382       

FACILITIES.                                                        13,383       

      NOTWITHSTANDING ANY PROVISION OF THE LAW TO THE CONTRARY,    13,385       

THE DIRECTOR OF ENVIRONMENTAL PROTECTION, WITH THE APPROVAL OF     13,387       

THE DIRECTOR OF BUDGET AND MANAGEMENT, MAY TRANSFER CASH BALANCES  13,388       

NOT ALREADY OBLIGATED TO OTHER OBLIGATIONS INTO THE MOVING         13,389       

EXPENSES FUND.                                                                  

      Sec. 62.01.  Child and Family Health Services                13,391       

      Of the foregoing appropriation item 440-416, Child and       13,393       

Family Health Services, $1,300,000 in each fiscal year shall be    13,394       

used for family planning services.  None of the funds received     13,396       

through these family planning grants shall be used to provide      13,398       

abortion services.  None of the funds received through these                    

                                                          304    

                                                                 
family planning grants shall be used for referrals for abortion,   13,399       

except in the case of a medical emergency.  These funds shall be   13,400       

distributed on the basis of the relative need in the community     13,401       

served by the Director of Health to family planning programs,      13,402       

which shall include family planning programs funded under Title V  13,403       

of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A.     13,405       

301, as amended, and Title X of the "Public Health Services Act,"  13,406       

58 Stat. 682 (1946), 42 U.S.C.A. 201, as amended, as well as to    13,407       

other family planning programs which the Department of Health      13,408       

also determines will provide services that do not include                       

referrals for abortion, other than in the case of medical          13,409       

emergency, with state funds, but that otherwise substantially      13,410       

comply with the quality standards for such programs under Title V  13,411       

and Title X.                                                                    

      The Director of Health shall, by regulation, provide         13,413       

reasonable methods by which a grantee wishing to be eligible for   13,414       

federal funding may comply with these requirements for state       13,415       

funding without losing its eligibility for federal funding.        13,416       

      Of the foregoing appropriation item 440-416, Child and       13,418       

Family Health Services, $25,000 in fiscal year 1998 shall be used  13,419       

by the Preble County Commission to conduct a study to determine    13,420       

if a Wellness Center should be established in Preble County.  Any  13,421       

unused funds shall be credited to appropriation item 440-416,      13,422       

Child and Family Health Services.                                  13,423       

      Of the foregoing appropriation item 440-416, Child and       13,425       

Family Health Services, $47,000 in fiscal year 1998 shall be used  13,426       

by the Monroe County Health Planning Council.                      13,427       

      Of the foregoing appropriation item 440-416, Child and       13,429       

Family Health Services, $150,000 in each fiscal year shall be      13,430       

used to provide malpractice insurance for physicians and other     13,432       

health professionals providing prenatal services in programs       13,433       

funded by the Ohio Department of Health.                           13,434       

      Of the foregoing appropriation item 440-416, Child and       13,436       

Family Health Services, $650,000 in each fiscal year shall be      13,438       

                                                          305    

                                                                 
used for the Help Me Grow program.                                              

      Of the foregoing appropriation item 440-416, Child and       13,440       

Family Health Services, $200,000 shall be used in each fiscal      13,442       

year for the OPTIONS dental care access program.                   13,443       

      Of the foregoing appropriation item 440-416, Child and       13,445       

Family Health Services, $25,000 shall be used by the Carroll       13,446       

County Health Department.                                                       

      Of the foregoing appropriation item 440-416, Child and       13,448       

Family Health Services, $50,000 in each fiscal year shall be used  13,450       

by the Cuyahoga County Health Department for the development of a  13,451       

Pulmonary Hemosiderosis Prevention Program.                                     

      Prevention                                                   13,453       

      Of the foregoing appropriation item 440-451, Prevention,     13,455       

$100,000 shall be used in each fiscal year for rape prevention     13,457       

programs.                                                                       

      Of the foregoing appropriation item 440-451, Prevention,     13,459       

$54,500 in fiscal year 1998 and $49,820 in fiscal year 1999 shall  13,461       

be used by the Miami Valley Youth Health Improvement Coalition to  13,462       

prevent youths from cigarette or marijuana use and from alcohol    13,463       

consumption. These funds shall be made available for use in the    13,464       

following counties: Champaign, Clark, Darke, Greene, Miami,        13,465       

Montgomery, Preble, and Shelby.                                                 

      Hemophilia AIDS Prevention                                   13,467       

      Of the foregoing appropriation, 440-406, Hemophilia          13,469       

Services, $235,000 in fiscal year 1998 and $245,000 in fiscal      13,470       

year 1999 shall be used by the Ohio Department of Health to        13,471       

provide grants to the nine hemophilia treatment centers to         13,472       

provide prevention services for persons with hemophilia and their  13,473       

family members affected by AIDS and other bloodborne pathogens.    13,474       

      HIV/AIDS Prevention/Protease Inhibitors                      13,476       

      Of the foregoing appropriation item 440-444, AIDS            13,478       

Prevention/AZT, $3.0 million in fiscal year 1998 and $3.9 million  13,479       

in fiscal year 1999 shall be used to assist persons with HIV/AIDS  13,481       

in acquiring protease inhibitor drugs.                                          

                                                          306    

                                                                 
      Hemophilia Insurance Pilot Project                           13,483       

      Of the foregoing appropriation item 440-406, Hemophilia      13,485       

Services, $205,000 in each fiscal year shall be used to implement  13,486       

the Hemophilia Insurance Pilot Project.                            13,487       

      Maternal Child Health Block Grant                            13,489       

      Of the foregoing appropriation item 440-601, Maternal Child  13,491       

Health Block Grant (Fund 320), $2,091,299 shall be used in each    13,492       

fiscal year for the purposes of abstinence-only education.  The    13,493       

Director of Health shall develop guidelines for the establishment  13,494       

of abstinence programs for teenagers with the purpose of                        

decreasing unplanned pregnancies and abortion.  Such guidelines    13,495       

shall be pursuant to Title V of the "Social Security Act," 42      13,496       

U.S.C.A. 510 and shall include, but are not limited to,            13,497       

advertising campaigns and direct training in schools and other     13,498       

locations.                                                                      

      Medically Handicapped Children Audit                         13,500       

      The Medically Handicapped Children Audit Fund (Fund 477)     13,502       

shall receive revenue from audits of hospitals and recoveries      13,503       

from third-party payors.  Funds may be expended for payment of     13,504       

audit settlements and for costs directly related to obtaining      13,505       

recoveries from third-party payors and for encouraging Program     13,506       

for Medically Handicapped Children recipients to apply for         13,507       

third-party benefits.  Funds also may be expended for payments     13,508       

for diagnostic and treatment services on behalf of medically       13,509       

handicapped children, as defined in division (A) of section        13,510       

3701.022 of the Revised Code, Ohio residents who are twenty-one    13,511       

or more years of age and who are suffering from cystic fibrosis.   13,512       

      Medically Handicapped Children - County Assessments          13,515       

      The foregoing appropriation item, 440-607, Medically         13,517       

Handicapped Children - County Assessments, shall be used to make   13,518       

payments pursuant to division (E) of section 3701.023 of the       13,519       

Revised Code.                                                      13,520       

      Sickle Cell Fund                                             13,522       

      The foregoing State Special Revenue Fund Group               13,524       

                                                          307    

                                                                 
appropriation item 440-610, Sickle Cell Disease Control (Fund      13,525       

4F9), shall be used by the Department of Health to administer      13,526       

programs authorized by section 3701.131 of the Revised Code.  The  13,527       

source of the funds is as specified in section 3701.23 of the      13,528       

Revised Code.                                                      13,529       

      Cancer Registry System                                       13,531       

      The foregoing appropriation item 440-412, Cancer Incidence   13,533       

Surveillance System, shall be used to establish and maintain a     13,534       

cancer registry system within the Department of Health pursuant    13,535       

to sections 3701.261 to 3701.263 of the Revised Code.  In each     13,536       

fiscal year of the biennium, $50,000 of line item 440-412 shall                 

be used as an operating subsidy for the Cleveland Cancer Data      13,537       

Systems.                                                                        

      Genetics Services                                            13,539       

      The foregoing State Special Revenue Fund Group               13,541       

appropriation item 440-608, Genetics Services (Fund 4D6), shall    13,542       

be used by the Department of Health to administer programs         13,543       

authorized by sections 3701.501 and 3701.502 of the Revised Code.  13,544       

      Sudden Infant Death Syndrome                                 13,546       

      A portion of the foregoing appropriation item 440-601,       13,548       

Maternal and Child Health Block Grant (Fund 320), shall be used    13,549       

to ensure that current information on sudden infant death          13,550       

syndrome is available for distribution by local health districts.  13,551       

      Poison Control Network                                       13,553       

      Of the foregoing appropriation, 440-504, Poison Control      13,555       

Network, all available funds in each fiscal year shall be used by  13,556       

the Ohio Department of Health for grants to the consolidated Ohio  13,557       

Poison Control Center to provide poison control services to Ohio   13,559       

citizens.                                                                       

      Of the foregoing appropriation item 440-504, Poison Control  13,562       

Network, $250,000 in fiscal year 1998 and $250,000 in fiscal year  13,563       

1999 shall be used to consolidate the poison control centers in    13,564       

Ohio in a single location in Hamilton County.                                   

      Tuberculosis                                                 13,566       

                                                          308    

                                                                 
      The foregoing appropriation item 440-506, Tuberculosis,      13,568       

shall be used to make payments to counties pursuant to section     13,569       

339.43 of the Revised Code.                                                     

      Child and Family Health Services ISTV                        13,571       

      The Director of Budget and Management shall transfer cash    13,573       

from Fund 3P8, Disproportionate Share, to the Department of        13,574       

Health Fund 5E1, Health Services, in an amount of $14,800,000.     13,575       

This amount shall be used for the following purposes: $4,900,000   13,576       

shall be used in fiscal years 1998 and 1999 for rabies             13,577       

prevention; $1,000,000 in each fiscal year shall be disbursed to   13,578       

the local Child and Family Health Services Clinics to provide      13,580       

services to uninsured low-income persons; $1,500,000 in each       13,581       

fiscal year to Federally Qualified Health Centers and federally    13,582       

designated look-alikes to provide services to uninsured            13,583       

low-income persons; $1,000,000 in each fiscal year shall be used   13,584       

for the diagnosis and treatment of sexually transmitted diseases;  13,585       

and $700,000 in each fiscal year for family planning services.     13,587       

None of the funds received through family planning grants under    13,588       

appropriation item 440-624, Health Services (Fund 5E1), shall be                

used to provide abortion services.  None of the funds received     13,589       

through family planning grants under appropriation item 440-624,   13,590       

Health Services (Fund 5E1), shall be used for referrals for        13,591       

abortion, except in the case of a medical emergency.  These funds  13,592       

shall be distributed on the basis of the relative need in the      13,594       

community served by the Director of Health to family planning                   

programs, which shall include family planning programs funded      13,595       

under Title V of the "Social Security Act," 49 Stat. 620 (1935),   13,596       

42 U.S.C.A. 301, as amended, and Title X of the "Public Health     13,597       

Services Act," 58 Stat. 682 (1946), 42 U.S.C.A. 201, as amended,   13,598       

as well as to other family planning programs which the Department  13,599       

of Health also determines will provide services that do not        13,600       

include referrals for abortion, other than in the case of medical  13,601       

emergency, with state funds, but that otherwise substantially      13,602       

comply with the quality standards for such programs under Title V  13,603       

                                                          309    

                                                                 
and Title X.                                                                    

      The Director of Health shall, by regulation, provide         13,605       

reasonable methods by which a grantee wishing to be eligible for   13,606       

federal funding may comply with these requirements for state       13,607       

funding without losing its eligibility for federal funding.  The   13,608       

Director of Health shall adopt rules for the use of these funds    13,609       

by September 30, 1997.                                                          

      The Director of Health shall require recipients of these     13,611       

funds to acknowledge that Fund 5E1, Health Services, does not      13,612       

have a revenue source beyond this biennium and that there is no    13,613       

assurance that funding for these initiatives will continue in the  13,615       

next biennium.                                                                  

      Public Health                                                13,617       

      Of the foregoing appropriation item 440-624, Health          13,619       

Services, $500,000 in fiscal year 1998 and $1,000,000 in fiscal    13,620       

year 1999 shall be transferred to the Ohio State University        13,621       

College of Medicine and Public Health.  The funds shall support    13,622       

the development of statewide public health initiatives that are    13,623       

consistent with the "Ohio Public Health Plan:  Strategies to       13,624       

Implement the Five Point Plan," including the development of data  13,626       

collection mechanisms and data processes to track and evaluate     13,627       

public health programs and outcomes.  The College of Medicine and  13,628       

Public Health shall work in collaboration with the Department of   13,629       

Health and the local departments of health to provide              13,630       

consultative program development and design services in health     13,631       

behavior, health promotion, epidemiology, biometrics, health       13,632       

services and management, and environmental health sciences.        13,633       

Measurable outcome-based initiatives shall be developed in a       13,634       

minimum of the following areas:  childhood immunizations;          13,635       

emerging infectious diseases; women's health issues; the           13,636       

prevention of teenage pregnancy; improved outcomes of pregnancy;   13,637       

and the value of nutritional education and dietary modification    13,638       

as a strategy for the prevention of heart disease and cancer.      13,639       

      The Director of Health shall require The Ohio State          13,641       

                                                          310    

                                                                 
University College of Medicine and Public Health to acknowledge    13,642       

that Fund 5E1, Health Services, does not have a revenue source     13,643       

beyond this biennium and that there is no assurance that funding   13,644       

for these initiatives will continue in the next biennium.          13,645       

      AIDS Drug Reimbursement Program                              13,647       

      Of the foregoing appropriation item 440-444, AIDS            13,649       

Prevention/AZT, $124,500 in fiscal years 1998 and 1999 shall be    13,650       

used for the AIDS Drug Reimbursement Program and section 3701.241  13,652       

of the Revised Code and Title XXVI of the "Public Health Services  13,653       

Act," 104 Stat. 576 (1990), 42 U.S.C.A. 2601, as amended.  The     13,654       

Department of Health is authorized to promulgate rules pursuant    13,655       

to section 111.15 and Chapter 119. of the Revised Code as          13,656       

necessary for the administration of the program.                   13,657       

      Ohio Early Start Program                                     13,659       

      The foregoing appropriation item 440-459, Ohio Early Start,  13,661       

shall be used to provide services to children under age three who  13,662       

are at risk of developmental delay or child abuse and neglect.     13,663       

Funds shall be allocated with the approval of the Family and       13,664       

Children First Cabinet Council and pursuant to rules adopted in    13,665       

accordance with Chapter 119. of the Revised Code.                               

      Ohio Health Care Data System                                 13,667       

      Of the foregoing appropriation item, 440-413, Ohio Health    13,669       

Care Data System, the Director of Health may distribute up to      13,671       

$450,000 in each fiscal year to the Ohio Corporation for Health    13,672       

Information to expand the electronic data interchange effort and   13,673       

for special projects.                                                           

      Transfer of Laboratory Services                              13,675       

      The Director of Health shall contract with The Ohio State    13,678       

University to perform the state laboratory testing, analytical     13,679       

duties and any other related functions currently performed by the  13,680       

Bureau of Laboratories at the Department of Health.                13,681       

      Osteoporosis Awareness Program                               13,683       

      Grants from pharmaceutical companies, and others, that are   13,685       

credited to appropriation item 440-609, Non-Governmental Revenue   13,686       

                                                          311    

                                                                 
(Fund 4L3), for the purpose of osteoporosis awareness and          13,687       

appropriations in line item 440-402, Osteoporosis Awareness, are   13,688       

to be used by the Office of Women's Health Initiatives to          13,689       

implement an Osteoporosis Awareness Program.                                    

      CENTRAL SUPPORT INDIRECT FUND CASH TRANSFER                  13,694       

      ON OR BEFORE JUNE 30, 1998, AT THE REQUEST OF THE DIRECTOR   13,697       

OF HEALTH, THE DIRECTOR OF BUDGET AND MANAGEMENT MAY TRANSFER      13,699       

CASH IN AN AMOUNT UP TO $600,000 FROM THE CENTRAL SUPPORT          13,700       

INDIRECT FUND (FUND 211) TO THE LAB HANDLING FEE FUND (FUND 473)   13,702       

AND INCREASE APPROPRIATION ITEM 440-622, LAB HANDLING FEE, BY AN   13,703       

EQUIVALENT AMOUNT.                                                              

      CERTIFICATE OF NEED FUND USES                                13,706       

      IN ADDITION TO USES CITED IN DIVISION (B) OF SECTION         13,708       

3702.52 OF THE REVISED CODE, IN FISCAL YEAR 1999 THE DIRECTOR OF   13,709       

HEALTH MAY USE THE CERTIFICATE OF NEED FUND (FUND 471) TO          13,710       

ADMINISTER SECTIONS 3702.11 TO 3702.20 AND 3702.30 OF THE REVISED  13,711       

CODE.                                                                           

      Sec. 67.08.  Study on Transfer of Assets and the Medicaid    13,715       

Estate Recovery Program                                            13,716       

      The Department of Human Services shall conduct a study, or   13,718       

contract for a study to be conducted, for the purpose of           13,719       

determining the extent to which applicants for nursing home        13,720       

services paid for through the Medicaid program are transferring    13,721       

their assets for less than fair market value as a means of         13,722       

avoiding depletion of their assets for their own support prior to  13,724       

becoming eligible for Medicaid.  The study shall include an                     

analysis of the Medicaid estate recovery program, including a      13,725       

compilation of data regarding the follwing FOLLOWING:  the         13,726       

frequency of homestead property being available for recovery, the  13,727       

amount spent on the estate recovery program in comparison to the   13,728       

amount actually recovered, and the experience of other states in   13,730       

operating Medicaid estate recovery programs.  The study shall      13,731       

include any recommendations for legislative changes that would     13,732       

either deter the occurrence of pre-eligibility asset transfers or  13,733       

                                                          312    

                                                                 
enhance the efficacy of the Department's Medicaid estate recovery  13,734       

program.  Results of the study shall be filed by January 1, 1999,  13,735       

with the Governor, the Speaker of the House of Representatives,    13,736       

and the President of the Senate.                                   13,737       

      FUNDING FOR THE EARLY START WELCOME VISITS PROGRAM           13,741       

      IN FISCAL YEAR 1999, UPON THE REQUEST OF THE DIRECTOR OF     13,744       

HUMAN SERVICES, THE CONTROLLING BOARD MAY TRANSFER UP TO $4        13,745       

MILLION IN STATE SHARE GENERAL REVENUE FUND APPROPRIATIONS FROM    13,746       

THE DEPARTMENT OF HUMAN SERVICES TO THE DEPARTMENT OF HEALTH       13,747       

APPROPRIATION ITEM 440-459, EARLY START WELCOME VISITS PROGRAM.    13,749       

THE DIRECTOR OF BUDGET AND MANAGEMENT MAY REDUCE THE APPROPRIATE   13,750       

LINE ITEM IN THE DEPARTMENT OF HUMAN SERVICES' BUDGET BY THE       13,751       

AMOUNT OF CORRESPONDING FEDERAL MATCHING FUNDS.                    13,752       

      Sec. 119.  OVH  OHIO VETERANS' HOME                          13,754       

General Revenue Fund                                               13,756       

GRF 430-100 Personal Services     $   10,334,362 $   11,039,285    13,761       

GRF 430-200 Maintenance           $    4,676,165 $    5,007,942    13,765       

TOTAL GRF General Revenue Fund    $   15,010,527 $   16,047,227    13,768       

Federal Special Revenue Fund Group                                 13,771       

3L2 430-601 Federal Grants        $    6,690,000 $    7,034,267    13,776       

TOTAL FED Federal Special Revenue                                  13,777       

   Fund Group                     $    6,690,000 $    7,034,267    13,780       

State Special Revenue Fund Group                                   13,783       

4E2 430-602 Veterans Home                                          13,786       

            Operating             $    3,082,672 $    3,320,470    13,788       

                                                      3,480,942    13,789       

484 430-603 RENTAL AND SERVICE                                     13,791       

            REVENUE               $            0 $      100,000    13,793       

604 430-604 Veterans Home                                          13,795       

            Improvement           $      466,192 $      579,839    13,797       

TOTAL SSR State Special Revenue                                    13,798       

  Fund Group                      $    3,548,864 $    3,900,309    13,801       

                                                      4,160,781    13,802       

TOTAL ALL BUDGET FUND GROUPS      $   25,249,391 $   26,981,803    13,805       

                                                          313    

                                                                 
                                                     27,242,275    13,806       

      CASH TRANSFER FROM VETERANS HOME FUND TO OPERATING FUNDDIRECTOR OF BUDGET AND MANAGEMENT MAY TRANSFER CASH IN   13,817       

AN AMOUNT EQUAL TO A ONE PER CENT REDUCTION IN THE OHIO VETERANS   13,818       

HOME GENERAL REVENUE FUND OPERATING LINE ITEMS, AS PROVIDED IN     13,820       

AM. SUB. H. B. 650 OF THE 122nd GENERAL ASSEMBLY, FROM THE         13,822       

VETERANS HOME FUND (FUND 604) TO THE VETERANS HOME OPERATING FUND  13,823       

(FUND 4E2).                                                        13,824       

      Sec. 190.  Ohio Departments Building                         13,826       

      (A)  As used in this section:                                13,828       

      (1)  "Repair and renovate" and "repair and renovation"       13,830       

include, but are not limited to, planning, programming, design,    13,831       

constructions, furnishing, and equipping of the Ohio Departments   13,832       

Building;                                                                       

      (2)  "Appropriation" means appropriation items CAP-815 and   13,834       

CAP-849 in Section 28 of Am. H.B. 748 of the 121st General         13,835       

Assembly, appropriation items CIR-825, CIR-815, and CIR-831 in     13,837       

Section 15.02 of Am. Sub. S.B. 264 of the 121st General Assembly,               

and any subsequent appropriations made to or for the benefit of    13,839       

the Supreme Court for the repair and renovation of the Ohio        13,840       

Departments Building.                                                           

      (B)  The appropriation shall be used by or at the direction  13,842       

of the Supreme Court of Ohio for the repair and renovation of the  13,843       

Ohio Departments Building as follows:                              13,844       

      (1)  A portion shall be used by the Department of            13,846       

Administrative Services for the repair and renovation of the       13,847       

exterior, roof, and grounds of the Ohio Departments Building;      13,848       

      (2)  The remaining portion shall be used after January 1,    13,850       

1998 by the Ohio Building Authority for other expenses associated  13,851       

with the repair and renovation of the Ohio Departments Building,   13,852       

including, but not limited to, the interior and grounds of the     13,853       

Building.                                                                       

      (C)  The Ohio Building Authority, with the prior approval    13,855       

of the Supreme Court, shall submit a plan and cost estimate of     13,856       

                                                          314    

                                                                 
repair and renovation set forth in division (B)(2) of this         13,857       

section to the Department of Administrative Services.  Based upon  13,858       

the plan, the Director of Administrative Services shall request    13,859       

the Director of Budget and Management to release from the                       

appropriation the estimated amount.  The Director of Budget and    13,860       

Management may release the funds APPROPRIATION and, upon their     13,861       

THAT release, the Director of Administrative Services shall        13,863       

transfer the amount released to the Ohio Building Authority,                    

which shall use the funds MONEYS, and any investment earnings on   13,864       

the funds MONEYS and other available receipts as defined in        13,866       

section 152.09 of the Revised Code, to pay the costs of the        13,867       

repair and renovation.                                                          

      (D)  Upon completion of the repair and renovation:           13,869       

      (1)  Any funds MONEYS received by the Ohio Building          13,871       

Authority for the repair and renovation that have not been used    13,872       

shall be refunded to the Department of Administrative Services     13,873       

for deposit into Fund 026;                                         13,874       

      (2)  The Supreme Court shall own, operate, and manage the    13,876       

Ohio Departments funds received by the Ohio Building Authority     13,878       

for the repair and renovation that have not been used shall be     13,879       

refunded to the Department of Administrative Services for deposit  13,880       

into Fund 026 Building.                                            13,881       

      (E)  The Supreme Court may enter into contracts or other     13,883       

agreements with the Department of Administrative Services, the     13,884       

Ohio Building Authority, another state entity, or a private        13,885       

contractor to operate and manage the Ohio Departments Building.    13,886       

      (F)  To assist the Ohio Building Authority, the Department   13,888       

of Administrative Services and the Supreme Court may assign,       13,889       

amend, or enter into any necessary or appropriate leases,          13,890       

contracts, or agreements relating to the Ohio Departments          13,891       

Building to or with the Ohio Building Authority upon terms         13,892       

satisfactory to all parties.                                                    

      (G)  REPAIRS AND RENOVATIONS THAT ARE MADE USING THE         13,894       

APPROPRIATION ARE EXEMPT FROM SECTION 3379.10 OF THE REVISED       13,896       

                                                          315    

                                                                 
CODE, THE PER CENT FOR ARTS PROGRAM.                                            

      Sec. 210.  Sections 5733.02, 5733.022, 5733.03, 5733.042,    13,898       

5733.05, 5733.051, 5733.052, 5733.053, 5733.055, 5733.06,          13,899       

5733.061, 5733.065, 5733.066, 5733.067, 5733.068, 5733.069,        13,900       

5733.0611, 5733.09, 5733.12, 5733.31, 5733.311, 5733.32, 5733.33,  13,901       

and 5733.98 of the Revised Code, as amended or enacted by this     13,902       

act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, apply to tax  13,904       

years 1999 and thereafter, except as otherwise provided in         13,906       

division (A) of section 5733.05 and divisions (A)(6) through (8)   13,908       

of section 5733.98 of the Revised Code.  NOTHING IN AM. SUB. H.B.  13,909       

215 OF THE 122nd GENERAL ASSEMBLY AMENDS OR REPEALS ALL OR ANY     13,911       

PORTION OF THESE SECTIONS FOR THE PURPOSES OF TAX YEAR 1998 WITH                

REGARD TO CORPORATIONS OTHER THAN FINANCIAL INSTITUTIONS.          13,912       

      THE AMENDMENT OF THIS SECTION IS SUBJECT TO THE              13,914       

REFERENDUM."                                                                    

      Section 4.  That existing Sections 20.05, 47.13, 58, 62.01,  13,916       

67.08, 119, 190, and 210 of Am. Sub. H.B. 215 of the 122nd         13,917       

General Assembly are hereby repealed.                              13,918       

      Section 5.  That Section 67.05 of Am. Sub. H.B. 215 of the   13,920       

122nd General Assembly, as amended by Sub. H.B. 446 of the 122nd   13,921       

General Assembly, be amended to read as follows:                   13,923       

      "Sec. 67.05.  Transfer of Funds                              13,925       

      The Ohio Department of Human Services shall transfer         13,927       

through intrastate transfer vouchers, cash from State Special      13,928       

Revenue Fund 4K1, ICF/MR Bed Assessments, to fund 4K8, Home and    13,929       

Community-Based Services, in the Ohio Department of Mental         13,930       

Retardation and Developmental Disabilities.  The sum of the        13,931       

transfers shall be equal to the amounts appropriated per fiscal    13,932       

year in line item 322-604, Waiver - Match.  The transfer may       13,933       

occur on a quarterly basis or on a schedule developed and agreed                

to by both Departments.                                            13,934       

      The Ohio Department of Human Services shall transfer,        13,936       

through intrastate transfer vouchers, cash from the State Special  13,937       

Revenue Fund 4J5, Home and Community-Based Services for the Aged,  13,938       

                                                          316    

                                                                 
to Fund 4J4, PASSPORT, in the Ohio Department of Aging.  The sum   13,939       

of the transfers shall be equal to the amount appropriated per     13,940       

fiscal year in line item 490-610, PASSPORT/Residential State       13,942       

Supplement.  The transfer may occur on a quarterly basis or on a   13,943       

schedule developed and agreed to by both departments.                           

      Day Care for Foster Parents                                  13,945       

      Of the foregoing appropriation item 400-527, Child           13,947       

Protective Services, not more than $1,400,000 in fiscal year 1998  13,949       

and not more than $1,400,000 in fiscal year 1999, may be used to   13,950       

reimburse counties for child day care services purchased in        13,951       

behalf of children in foster care.  Such funds may be used as                   

matching funds for federal funds that may be available for this    13,952       

purpose.  The Department of Human Services shall adopt rules, in   13,953       

accordance with section 111.15 of the Revised Code, establishing   13,954       

reimbursement procedures and conditions to be followed by          13,955       

counties.                                                                       

      Transfer from the Children's Trust Fund to the Wellness      13,957       

Block Grant Fund                                                                

      The Director of Budget and Management shall transfer         13,959       

$1,000,000 in fiscal year 1998 and $1,000,000 in fiscal year 1999  13,960       

from Fund 198, Children's Trust Fund, to Fund 4N7, Wellness Block  13,961       

Grant, within the Department of Human Services' budget.            13,962       

      Foster Care Liability Coverage                               13,964       

      On behalf of public children services agencies and in        13,966       

consultation with the Department of Insurance and the Office of    13,967       

State Purchasing, the Department of Human Services may seek and    13,968       

accept proposals for a uniform and statewide insurance policy to   13,969       

indemnify foster parents for personal injury and property damage   13,970       

suffered by them due to the care of a foster child.  Premiums for               

such a policy shall be the sole responsibility of each public      13,971       

children services agency that agrees to purchase the insurance     13,972       

policy.                                                                         

      Protective Services Incentive Funding                        13,974       

      Notwithstanding the formula in section 5101.14 of the        13,976       

                                                          317    

                                                                 
Revised Code, from the foregoing appropriation item 400-527,       13,977       

Child Protective Services, the Department of Human Services may    13,978       

use no more than $2 million in fiscal year 1999 as incentive       13,979       

funding for public children services agencies to promote                        

innovative practice standards and efficiencies in service          13,980       

delivery.  The department shall develop a process for the release  13,981       

of these funds and may adopt rules in accordance with section      13,982       

111.15 of the Revised Code governing the distribution, release,    13,983       

and use of these funds.                                                         

      Day Care/Head Start Collaborations                           13,985       

      The Department of Human Services and the county departments  13,987       

of human services shall work to develop collaborative efforts      13,988       

between Head Start and child care providers.  The Department of    13,989       

Human Services may use the foregoing appropriation items 400-413,  13,991       

Day Care Match/Maintenance of Effort, and 400-617, Day Care                     

Federal, to support collaborative efforts between Head Start and   13,992       

child day care centers.                                            13,993       

      Day Care Funding for Latchkey Children                       13,995       

      The Department of Human Services shall use not less than     13,997       

$5,000,000 in fiscal year 1998 and not less than $5,000,000 in     13,998       

fiscal year 1999 of the Child Care Development Block Grant         13,999       

moneys to support low-income families who need assistance in the   14,000       

provision of before-school and after-school care for their         14,001       

children.  The Department of Human Services shall establish rules  14,002       

determining eligibility for these dollars adopted in accordance    14,003       

with section 111.15 of the Revised Code.                           14,004       

      Evening and Night Time Child Care                            14,006       

      When the Department of Human Services adopts rules           14,008       

establishing a procedure for determining the rates of maximum      14,009       

reimbursement for publicly funded child care, the department       14,010       

shall adopt an enhanced rate to encourage the development of       14,011       

child care for parent(s) who work nontraditional hours.            14,012       

      Human Services Staff Reduction                               14,014       

      From staffing levels that existed on January 1, 1997, the    14,017       

                                                          318    

                                                                 
Department of Human Services is required to reduce its full-time                

equivalent positions by 150 by July 1, 1999.  At least             14,018       

thirty-nine positions must be eliminated by January 1, 1998.  The  14,019       

remaining positions must be eliminated by July 1, 1999.            14,020       

      Child Protective Services Information System                 14,022       

      (A)  From the foregoing appropriation item 400-416,          14,024       

Computer Projects, the Department of Human Services shall expend   14,025       

at least $6,000,000 in fiscal year 1998 and at least $6,000,000    14,026       

in fiscal year 1999 to contract with a vendor to develop a         14,028       

statewide automated child welfare information system (SACWIS) and  14,029       

support the 88 public children services agencies' implementation   14,030       

of the SACWIS.  The department shall select a vendor by using a    14,032       

competitively bid request for proposal process.  For a vendor to   14,034       

be eligible to contract with the department, all of the following  14,035       

must apply:                                                                     

      (1)  The vendor must have developed a SACWIS for another     14,038       

state and assisted that state with the successful implementation   14,039       

of the SACWIS;                                                     14,040       

      (2)  The vendor must be able to do either of the following:  14,043       

      (a)  Revise the SACWIS developed for the other state to      14,047       

comply with Ohio and federal law and successfully interface with   14,048       

the Support Enforcement Tracking System (SETS) and Client          14,050       

Registry and Information System-Enhanced (CRIS-E);                 14,051       

      (b)  Develop a new SACWIS that complies with Ohio and        14,055       

federal law and successfully interfaces with SETS and CRIS-E;      14,057       

      (3)  The vendor must be able to have the SACWIS operational  14,060       

in all 88 public children services agencies by June 30, 1999.      14,061       

      (B)  The Department of Human Services shall do both of the   14,063       

following:                                                                      

      (1)   Provide training and system support for the county     14,065       

employees who will use the SACWIS;                                 14,066       

      (2)  Provide for the maintenance and general upkeep of the   14,068       

SACWIS.                                                            14,069       

      Adoption Assistance                                          14,071       

                                                          319    

                                                                 
      Of the foregoing appropriation item 400-528, Title IV-E and  14,073       

State Adoption Services, not more than $3,700,000 in fiscal year   14,074       

1998 and not more than $3,700,000 in fiscal year 1999 shall be     14,075       

used in support of post finalization adoption services offered     14,076       

pursuant to section 5153.163 of the Revised Code.  The Department  14,078       

of Human Services shall adopt rules and procedures pursuant to     14,079       

section 111.15 of the Revised Code to set payment levels and       14,080       

limit eligibility for post finalization adoption services as       14,081       

necessary to limit program expenditures to the amounts set forth   14,082       

in this section, based on factors, including but not limited to,   14,083       

any or all of the following:  type, or extent, of the adopted      14,084       

child's disability or special need; and resources available to     14,085       

the adoptive family to meet the child's service needs.             14,086       

      Social Service Block Grant (SSBG) Earmark for Day Care       14,088       

Services                                                           14,089       

      Of the foregoing appropriation item 400-620, Social          14,091       

Services Block Grant, no less than $15,000,000 in fiscal year      14,092       

1998 and $15,000,000 in fiscal year 1999 shall be used for child   14,093       

day care services.  The remainder of the SSBG funding may be used  14,094       

to provide social services as authorized in section 5101.465       14,095       

5101.46 of the Revised Code, including adult day care.             14,096       

      Child Support Collections/TANF MOE                           14,098       

      The foregoing appropriation item 400-658, Child Support      14,100       

Collections, shall be used by the Department of Human Services to  14,101       

meet the TANF Maintenance of Effort requirements of Pub. L. No.    14,102       

104-193.  After the state has met the maintenance of effort        14,103       

requirement, the Department of Human Services may use funds from   14,104       

line item 400-658 to support public assistance activities.                      

      Transfer of Unspent Funds from Fiscal Year 1998 to Fiscal    14,107       

Year 1999                                                                       

      Upon the request of the Department of Human Services, the    14,110       

Controlling Board may transfer any remaining unspent fiscal year   14,111       

1998 funds from appropriation item 400-410, TANF State, to                      

appropriations for fiscal year 1999 so that the state of Ohio      14,112       

                                                          320    

                                                                 
will be able to meet the Maintenance of Effort requirements for    14,113       

the Temporary Assistance for Needy Families Block.                 14,114       

      Upon the request of the Department of Human Services, the    14,116       

Controlling Board may transfer any remaining unspent fiscal year   14,117       

1998 funds from appropriation item 400-413, Day Care/Maintenance   14,118       

of Effort, to appropriations for fiscal year 1999 so that the      14,119       

state of Ohio will be able to meet the Maintenance of Effort       14,120       

requirements for the Child Care Development Block Grant.           14,121       

      Upon the request of the Department of Human Services, the    14,123       

Controlling Board may transfer any remaining unspent fiscal year   14,124       

1998 funds from individual county consolidations from              14,125       

appropriation item 400-527, Child Protective Services, to          14,126       

appropriations for fiscal year 1999 so that the counties may meet  14,128       

the obligations for services funded through that line item.                     

      Upon the request of the Department of Human Services, the    14,130       

Controlling Board may transfer any remaining unspent fiscal year   14,131       

1998 funds from the Post Finalization Special Adoption Services    14,132       

portion of appropriation item 400-528, Adoption Services, to       14,133       

appropriations for fiscal year 1999 so that counties may meet the  14,135       

obligations for services funded through that portion of the line   14,136       

item.                                                                           

      Upon the request of the Department of Human Services, the    14,138       

Controlling Board may transfer any remaining unspent fiscal year   14,139       

1998 funds from appropriation item 400-409, Wellness Block Grant,  14,141       

to appropriations for fiscal year 1999 so that the counties may    14,142       

meet the obligations for services funded through that line.        14,143       

      Private Child Care Agencies Training                         14,145       

      The foregoing appropriation item 400-615, Private Child      14,147       

Care Agencies Training, shall be used by the Department of Human   14,148       

Services to provide the state match for federal Title IV-E         14,149       

training dollars for private child placing agencies and private    14,150       

noncustodial agencies.  Revenues shall consist of moneys derived   14,151       

from fees established under section 5101.112 5101.143 of the       14,152       

Revised Code and paid by private child placing agencies and        14,153       

                                                          321    

                                                                 
private noncustodial agencies.                                                  

      Funding for Emergency Food Distribution Programs             14,155       

      Of the foregoing appropriation item 400-610, Food Stamps     14,157       

and State Administration, $1.5 million in fiscal year 1998 and     14,158       

$1.5 million in fiscal year 1999 shall be used by the Department   14,159       

of Human Services to purchase commodities and distribute those     14,160       

commodities to supplement the emergency food distribution          14,161       

programs.  Agencies receiving commodities under this program       14,162       

shall provide reports in accordance with rules developed by the    14,163       

Department of Human Services.                                      14,164       

      Transfers for Lead Assessments                               14,166       

      Of the foregoing appropriation item 400-525, Health          14,168       

Care/Medicaid, $77,790 (state share only) in fiscal year 1998,     14,169       

and $111,477 (state share only) in fiscal year 1999 shall be used  14,171       

to transfer funds from the General Revenue Fund to the General     14,172       

Operations Fund (Fund 142) of the Department of Health.  Transfer  14,173       

of the funds shall be made through intrastate transfer vouchers    14,174       

pursuant to an interagency agreement for the purpose of                         

performing environmental lead assessments in the homes of          14,175       

Medicaid Healthcheck recipients.                                   14,176       

      Transfer IMD/DSH Cash                                        14,178       

      The Director of Budget and Management may transfer cash      14,180       

from the Disproportionate Share Fund (3P8) in the Department of    14,181       

Human Services to the OhioCare Fund (4X5) in the Department of     14,182       

Mental Health, the Behavioral Health Medicaid Services Fund (4X4)  14,184       

in the Department of Alcohol and Drug Addiction Services, and the               

Medicaid Program Support Fund - State (5C9) in the Department of   14,185       

Human Services and shall transfer cash in the amount of            14,186       

$14,800,000 to the Health Services Fund (5E1) in the Department    14,187       

of Health.                                                                      

      Interagency Agreement on Specified Medicaid Services         14,189       

      Based on an interagency agreement, the Department of Human   14,191       

Services may delegate authority to the Department of Alcohol and   14,192       

Drug Addiction Services and the Department of Mental Health to     14,193       

                                                          322    

                                                                 
administer specified Medicaid services.  Monthly reimbursement     14,194       

shall be made by intrastate transfer voucher from the Department   14,195       

of Human Services' appropriation items 400-525, Health             14,196       

Care/Medicaid, and 400-655, Interagency Reimbursement, to the      14,197       

Department of Drug and Alcohol Addiction Services' Behavioral      14,198       

Health Medicaid Services Fund (4X4) and the Department of Mental   14,200       

Health's OhioCare Fund (4X5).                                                   

      Medicaid Program Support Fund-State                          14,202       

      The Department of Human Services' Medicaid Program Support   14,204       

Fund-State (5C9) is hereby created in the state treasury.  The     14,205       

Fund shall be used to receive earned federal reimbursement         14,206       

generated by the Institutions for Mental                                        

Diseases/Disproportionate Share Hospital Program.  The foregoing   14,207       

appropriation item 400-671, Medicaid Program Support, may be used  14,209       

for the following purposes:  to pay for Medicaid services to       14,210       

eligible children under age nineteen, whose family income does     14,211       

not exceed 150 per cent of the federal poverty level; to pay for   14,212       

a new Medicaid home and community-based waiver program for         14,213       

non-aged persons with chronic, long-term disabilities; and, to     14,214       

make residual payments associated with the specified Medicaid      14,215       

services transferred to the Department of Alcohol and Drug         14,216       

Addiction Services and the Department of Mental Health.            14,217       

      The foregoing appropriation item 400-672, Medicaid           14,219       

Services, may be used by the Department of Human Services to pay   14,220       

for Medicaid services or to transfer moneys by intrastate          14,221       

transfer voucher to the Department of Mental Health's OhioCare     14,223       

Fund (4X5) in accordance with an interagency agreement which       14,224       

delegates authority from the Department of Human Services to the   14,225       

Department of Alcohol and Drug Addiction Services and the                       

Department of Mental Health to administer specified Medicaid       14,226       

services.                                                          14,227       

      Medicaid Program Support Fund-Federal                        14,229       

      The Department of Human Services' Medicaid Program Support   14,231       

Fund-Federal (3P7) is hereby created in the state treasury.  The   14,232       

                                                          323    

                                                                 
foregoing appropriation item 400-668, Medicaid Program Support,    14,233       

may be used to pay for Medicaid services to eligible children      14,235       

under age nineteen, whose family income does not exceed 150 per    14,236       

cent of the federal poverty level; and for a new Medicaid home                  

and community-based waiver program for non-aged persons with       14,237       

chronic, long-term disabilities.  Funds also may be used for       14,238       

residual payments associated with the specified Medicaid services  14,239       

transferred to the Department of Alcohol and Drug Addiction        14,240       

Services and the Department of Mental Health.                                   

      The foregoing appropriation item 400-672, Medicaid           14,242       

Services, may be used by the Department of Human Services to pay   14,243       

for Medicaid services and contracts.                               14,244       

      OhioCare Start-up Fund Name Change                           14,246       

      The name of the Department of Human Services' OhioCare       14,248       

Start-up Fund (3P7) is hereby changed to the Medicaid Program      14,249       

Support Fund-Federal.                                                           

      Rural Medicaid Managed Care Pilot Programs                   14,251       

      The Director of Human Services may contract with one or      14,253       

more organizations to develop and/or implement Medicaid Managed    14,254       

Care Pilot Programs in rural sections of Ohio.                     14,255       

      Medicaid Managed Care Reimbursement Study Committee          14,257       

      The Medicaid Managed Care Reimbursement Study Committee      14,259       

shall meet by August 1, 1997, to begin reviewing the               14,260       

appropriateness of the negotiated Medicaid reimbursement rates     14,261       

paid to managed care organizations for services provided to        14,262       

Medicaid recipients in fiscal year 1998.  By November 1, 1997,     14,263       

the Committee must report its findings and/or recommendations      14,264       

concerning the fiscal year 1998 rates to the Governor, the         14,265       

Speaker of the House of Representatives, and the President of the  14,266       

Senate.                                                                         

      Medicaid Managed Care for Individuals with MR/DD             14,268       

      In preparing the budget for medical assistance for state     14,270       

fiscal years 2000 and 2001, as it pertains to services provided    14,271       

to individuals with mental retardation and developmental           14,272       

                                                          324    

                                                                 
disabilities, the Office of Budget and Management and the          14,273       

Department of Human Services shall review the results of any       14,274       

study regarding the use of a managed care system that is prepared  14,276       

and submitted to it by the Hattie Larlham Foundation, the Ohio                  

Department of Mental Retardation and Developmental Disabilities    14,277       

Action Committee, the Ohio Private Residential Association, the    14,278       

Ohio Coalition for Services to Persons with Mental Retardation     14,279       

and Developmental Disabilities, or any other entity.               14,280       

      Transfer Lapsed Funds in Fund 4A6 to GRF                     14,282       

      The Department of Human Services shall certify the cash      14,284       

balance of Fund 4A6 to the Director of Budget and Management who   14,285       

shall transfer the remaining unexpended, unobligated balance in    14,286       

Fund 4A6 to the General Revenue Fund.                                           

      Holding Account Redistribution Group                         14,288       

      The foregoing appropriation items 400-643 and 400-644,       14,290       

Holding Account Redistribution Fund Group, shall be used to hold   14,291       

revenues until they are directed to the appropriate accounts or    14,292       

until they are refunded.  If it is determined that additional      14,293       

appropriation authority is necessary, such amounts are hereby      14,294       

appropriated.                                                                   

      Agency Fund Group                                            14,296       

      The foregoing appropriation items 400-646, 400-601, and      14,298       

400-642, Agency Fund Group, shall be used to hold revenues until   14,299       

they are directed to the appropriate accounts or until they are    14,300       

directed to the appropriate governmental agency other than the     14,301       

Department of Human Services.  If it is determined that                         

additional appropriation authority is necessary, such amounts are  14,302       

hereby appropriated.                                               14,303       

      State Special Revenue Fund Group                             14,305       

      The foregoing appropriation items that appear in the         14,307       

Department of Human Services' State Special Revenue Fund Group     14,308       

shall be used to collect revenue from various sources and use the  14,309       

revenue to support programs administered by the Department of      14,310       

Human Services.  If it is determined that additional                            

                                                          325    

                                                                 
appropriations are necessary, the department shall notify the      14,311       

Director of Budget and Management on forms prescribed by the       14,313       

Controlling Board.  If the director agrees that the additional     14,314       

appropriation is necessary in order to perform the functions                    

allowable in the appropriation item then such amounts are hereby   14,315       

appropriated.  The Director of Budget and Management shall notify  14,316       

the Controlling Board at their next regularly scheduled meeting    14,317       

as to the action taken."                                                        

      Section 6.  That existing Section 67.05 of Am. Sub. H.B.     14,319       

215 of the 122nd General Assembly, as amended by Sub. H.B. 446 of  14,320       

the 122nd General Assembly, is hereby repealed.                    14,321       

      Section 7.  That Sections 50, 50.07, 50.09, 50.10, 50.12,    14,323       

50.13, 50.14, 50.24, and 50.52.10 of Am. Sub. H.B. 215 of the      14,324       

122nd General Assembly, as amended by Am. Sub. H.B. 650 of the     14,325       

122nd General Assembly, be amended to read as follows:             14,327       

      "Sec. 50.  EDU  DEPARTMENT OF EDUCATION                      14,332       

General Revenue Fund                                               14,334       

GRF 200-100 Personal Services     $   10,744,925 $   10,756,210    14,339       

                                                     11,256,210    14,340       

GRF 200-200 Maintenance           $    8,691,111 $    4,597,207    14,344       

                                       3,991,111      6,797,207    14,345       

GRF 200-300 Equipment             $      117,449 $      116,773    14,349       

                                                      2,116,773    14,350       

GRF 200-405 Primary and Secondary                                  14,352       

            Education Funding     $            0 $            0    14,354       

GRF 200-406 Head Start            $   83,739,058 $   92,562,977    14,358       

GRF 200-408 Public Preschool      $   17,468,094 $   17,904,796    14,362       

GRF 200-410 Professional                                           14,364       

            Development           $            0 $   29,649,944    14,366       

GRF 200-411 Family and Children                                    14,368       

            First                 $    8,500,500 $   10,642,188    14,370       

GRF 200-412 Driver Education                                       14,372       

            Administration        $      143,429 $      142,605    14,374       

GRF 200-415 Consumer Education    $      500,000 $      500,000    14,378       

                                                          326    

                                                                 
GRF 200-416 Vocational Education                                   14,380       

            Match                 $    2,245,026 $    2,248,664    14,382       

GRF 200-417 Professional                                           14,384       

            Development           $   14,370,077 $            0    14,386       

GRF 200-422 School Management                                      14,388       

            Assistance            $      800,596 $      841,563    14,390       

GRF 200-423 Teacher Recruitment   $    1,289,067 $            0    14,394       

GRF 200-424 Simulation System     $      449,796 $      447,210    14,398       

GRF 200-426 Ohio Educational                                       14,400       

            Computer Network      $   21,698,858 $   22,228,079    14,402       

GRF 200-429 Local Professional                                     14,404       

            Development Block                                                   

            Grants                $    9,259,713 $            0    14,406       

GRF 200-431 School Improvement                                     14,408       

            Models                $   16,450,000 $   11,525,000    14,410       

GRF 200-432 School Conflict                                        14,412       

            Management            $      392,575 $      402,390    14,414       

GRF 200-437 Student Proficiency   $   10,555,476 $   11,798,788    14,418       

GRF 200-441 American Sign                                          14,420       

            Language              $      226,245 $      226,245    14,422       

GRF 200-442 Child Care Licensing  $    1,359,171 $    1,438,172    14,426       

GRF 200-446 Education Management                                   14,428       

            Information System    $   12,060,657 $   10,299,674    14,430       

GRF 200-447 GED Testing/Adult                                      14,432       

            High School           $    1,939,001 $    1,987,475    14,434       

GRF 200-455 Charter Schools       $    1,200,000 $    2,300,000    14,438       

GRF 200-500 School Finance Equity $  109,405,982 $   66,957,250    14,442       

GRF 200-501 Base Cost Funding     $2,202,851,688 $2,986,915,811    14,446       

GRF 200-502 Pupil Transportation  $  179,702,987 $  231,595,463    14,450       

GRF 200-503 Bus Purchase                                           14,452       

            Allowance             $   36,365,821 $   37,274,967    14,454       

GRF 200-504 Special Education     $  556,029,126 $            0    14,458       

GRF 200-505 School Lunch Match    $    9,450,000 $    9,450,000    14,462       

GRF 200-507 Vocational Education  $  317,612,847 $            0    14,466       

                                                          327    

                                                                 
GRF 200-509 Adult Literacy                                         14,468       

            Education             $    8,928,273 $    9,151,480    14,470       

GRF 200-511 Auxiliary Services    $   95,956,267 $  101,617,687    14,474       

GRF 200-512 Driver Education      $    6,026,070 $    6,206,852    14,478       

GRF 200-514 Post-Secondary/Adult                                   14,480       

            Vocational Education  $   20,695,861 $   20,695,861    14,482       

GRF 200-520 Disadvantaged Pupil                                    14,484       

            Impact Aid            $  277,205,650 $  386,618,741    14,486       

GRF 200-521 Gifted Pupil Program  $   34,383,349 $   36,326,043    14,490       

GRF 200-524 Educational                                            14,492       

            Excellence and                                                      

            Competency            $    9,528,000 $    9,168,000    14,494       

GRF 200-526 Vocational Education                                   14,496       

            Equipment Replacement $    4,941,622 $            0    14,498       

GRF 200-532 Nonpublic                                              14,500       

            Administrative Cost                                                 

            Reimbursement         $   41,829,125 $   44,297,043    14,502       

GRF 200-533 School-Age Child Care $    1,046,647 $    1,046,647    14,506       

GRF 200-534 Desegregation Costs   $   50,400,000 $   50,400,000    14,510       

GRF 200-540 Special Education                                      14,512       

            Enhancements          $            0 $  136,286,490    14,515       

GRF 200-541 Peer Review           $    1,840,000 $            0    14,519       

GRF 200-542 National Board                                         14,521       

            Certification         $    1,600,000 $            0    14,523       

GRF 200-543 Entry Year Program    $    2,396,205 $            0    14,527       

GRF 200-544 Individual Career                                      14,529       

            Plan & Passport       $    5,708,968 $            0    14,531       

GRF 200-545 Vocational Education                                   14,533       

            Enhancements          $            0 $  184,298,314    14,536       

                                                    201,991,432    14,537       

GRF 200-546 Charge-Off Supplement $            0 $   11,000,000    14,540       

GRF 200-547 Power Equalization    $            0 $   12,500,000    14,543       

GRF 200-551 Reading Improvement   $    1,666,133 $    1,666,133    14,547       

GRF 200-552 County MR/DD Boards                                    14,549       

                                                          328    

                                                                 
            Vehicle Purchases     $    1,551,774 $    1,590,569    14,551       

GRF 200-553 County MR/DD Boards                                    14,553       

            Transportation                                                      

            Operating             $    6,611,623 $    6,876,088    14,555       

GRF 200-558 Emergency Loan                                         14,558       

            Interest Subsidy      $            0 $    8,490,374    14,560       

GRF 200-577 Preschool Special                                      14,562       

            Education             $   62,268,535 $            0    14,564       

GRF 200-589 Special Education                                      14,566       

            Aides                 $    1,635,157 $            0    14,568       

GRF 200-901 Property Tax                                           14,570       

            Allocation -                                                        

            Education             $  566,800,000 $  600,800,000    14,572       

GRF 200-906 Tangible Tax                                           14,574       

            Exemption - Education $   61,320,000 $   63,210,000    14,576       

TOTAL GRF General Revenue Fund    $4,899,958,534 $5,257,055,773    14,579       

                                   4,895,258,534  5,279,448,891    14,580       

General Services Fund Group                                        14,583       

4D1 200-602 Ohio                                                   14,586       

            Prevention/Education                                                

            Resource Center       $      277,560 $      285,332    14,588       

138 200-606 Computer Services     $    4,036,728 $    4,143,201    14,592       

452 200-638 Fees and Gifts        $    1,788,862 $    1,838,335    14,596       

596 200-656 Ohio Career                                            14,598       

            Information System    $      647,156 $      660,812    14,600       

4P1 200-629 Adult Literacy                                         14,602       

            Education             $    2,364,400 $    2,430,603    14,604       

4L2 200-681 Teacher Certification                                  14,606       

            and Licensure         $    3,580,741 $    3,675,311    14,608       

TOTAL GSF General Services                                         14,609       

   Fund Group                     $   12,695,447 $   13,033,594    14,612       

Federal Special Revenue Fund Group                                 14,615       

309 200-601 Educationally                                          14,618       

            Disadvantaged         $   12,486,104 $   12,904,245    14,620       

                                                          329    

                                                                 
366 200-604 Adult Basic Education $   16,300,000 $   18,000,000    14,624       

3H9 200-605 Head Start                                             14,626       

            Collaboration Project $      200,000 $      200,000    14,628       

367 200-607 School Food Services  $    9,290,000 $   10,160,000    14,632       

368 200-614 Veterans' Training    $      565,232 $      593,493    14,636       

369 200-616 Vocational Education  $   10,556,971 $   10,787,320    14,640       

3L6 200-617 Federal School Lunch  $  159,570,000 $  167,550,000    14,644       

3L7 200-618 Federal School                                         14,646       

            Breakfast             $   29,818,000 $   31,607,000    14,648       

3L8 200-619 Child and Adult Care                                   14,650       

            Programs              $   58,600,000 $   59,800,000    14,652       

3L9 200-621 Vocational Education                                   14,654       

            Basic Grant           $   54,122,121 $   54,122,121    14,656       

3M0 200-623 ESEA Chapter One      $  356,669,568 $  374,503,047    14,660       

370 200-624 Education of All                                       14,662       

            Handicapped Children  $   12,902,838 $   12,902,838    14,664       

3N7 200-627 School-to-Work        $   18,000,000 $   13,500,000    14,668       

371 200-631 EEO Title IV          $      364,655 $      377,850    14,671       

372 200-635 Federal Driver                                         14,673       

            Education Projects    $       84,500 $       84,500    14,675       

373 200-642 Pupil Transportation                                   14,677       

            Safety Project        $       81,000 $       81,000    14,679       

374 200-647 E.S.E.A. Consolidated                                  14,681       

            Grants                $      260,301 $      265,624    14,683       

375 200-652 Technical Assistance                                   14,685       

            for Educational                                                     

            Mobility              $      216,720 $      227,556    14,687       

376 200-653 J.T.P.A.              $    5,000,000 $    5,034,523    14,691       

3R3 200-654 Goals 2000            $   19,789,214 $   22,000,000    14,695       

377 200-657 Sex Equity            $      125,685 $      131,969    14,699       

378 200-660 Math/Science                                           14,701       

            Technology                                                          

            Investments           $   10,802,634 $   12,000,000    14,703       

3D1 200-664 Drug Free Schools     $   17,410,259 $   19,500,000    14,707       

                                                          330    

                                                                 
3D2 200-667 Honors Scholarship                                     14,709       

            Program               $    1,231,979 $    1,231,979    14,711       

3E2 200-668 AIDS Education                                         14,713       

            Project               $      718,734 $      620,775    14,715       

3M1 200-678 ESEA Chapter Two      $   13,478,447 $   14,152,369    14,719       

3M2 200-680 Ind W/Disab Education                                  14,721       

            Act                   $   91,825,830 $   91,825,830    14,723       

TOTAL FED Federal Special                                          14,724       

   Revenue Fund Group             $  900,470,792 $  934,164,039    14,727       

State Special Revenue Fund Group                                   14,730       

454 200-610 Guidance and Testing  $      490,662 $      503,912    14,735       

455 200-608 Commodity Foods       $    8,000,000 $    8,000,000    14,739       

4V7 200-633 Interagency                                            14,741       

            Vocational Support    $      514,000 $      528,392    14,743       

5F8 200-645 Textbooks/Instructional                                14,744       

            Materials             $   25,000,000 $   25,000,000    14,747       

598 200-659 Auxiliary Services                                     14,749       

            Mobile Units          $    1,224,444 $    1,258,728    14,751       

5H3 200-687 School District                                        14,753       

            Solvency Assistance   $            0 $   30,000,000    14,755       

4R7 200-695 Indirect Cost                                          14,757       

            Recovery              $    1,357,434 $    1,393,146    14,759       

TOTAL SSR State Special Revenue                                    14,760       

   Fund Group                     $   36,586,540 $   66,684,178    14,763       

Lottery Profits Education Fund Group                               14,766       

017 200-682 Lease Rental Payment                                   14,769       

            Reimbursement         $   21,105,000 $   32,780,000    14,771       

017 200-610 Base Cost Funding     $            0 $  666,093,028    14,775       

017 200-670 School Foundation -                                    14,777       

            Basic Allowance       $  584,137,200 $            0    14,779       

017 200-671 Special Education     $   44,000,000 $            0    14,783       

017 200-672 Vocational Education  $   30,000,000 $            0    14,787       

017 200-673 Primary and Secondary                                  14,789       

            Lottery Funding       $            0 $            0    14,791       

                                                          331    

                                                                 
017 200-694 Bus Purchase One Time                                  14,793       

            Supplement            $   10,000,000 $            0    14,795       

018 200-669  Judgment Loan        $    5,650,000 $            0    14,803       

Total 017 and 018                                                  14,804       

   LPE Lottery Profits Education                                   14,805       

   Fund Group                     $  694,892,200 $  698,873,028    14,808       

Education Improvement Fund                                         14,811       

006 200-689 Hazardous Waste                                        14,814       

            Removal               $    1,500,000 $    1,443,401    14,816       

TOTAL Education Improvement Fund  $    1,500,000 $    1,443,401    14,819       

TOTAL ALL BUDGET FUND GROUPS      $6,546,103,513 $6,969,810,612    14,822       

                                   6,541,403,513  6,992,203,730    14,823       

      Professional Development                                     14,826       

      Of the foregoing appropriation item 200-410, Professional    14,828       

Development, $5,997,829 shall be used by the Department of         14,829       

Education to develop a statewide comprehensive system of twelve    14,831       

professional development centers that support local educators'     14,833       

ability to foster academic achievement in the students they                     

serve.  The centers shall include training teachers on site-based  14,835       

management concepts to encourage teachers to become involved in    14,836       

the management of their schools.  Each fiscal year, up to          14,837       

$450,000 of the appropriation item shall be used to continue Ohio  14,838       

leadership academies to develop and train superintendents,         14,839       

principals, other administrators, and board members in new                      

leadership and management practices to support high performance    14,840       

schools.  This training shall be coordinated with other locally    14,841       

administered leadership programs.                                  14,842       

      Of the foregoing appropriation item 200-410, Professional    14,844       

Development, $50,000 each year shall be distributed to the Ohio    14,846       

Geographical Alliance at such time as matching funds are provided  14,847       

by the National Geographical Society.  These moneys shall be used  14,849       

by the Ohio Geographical Alliance to provide inservice geography   14,851       

training to Ohio public school teachers.                           14,852       

      Of the foregoing appropriation item 200-410, Professional    14,854       

                                                          332    

                                                                 
Development, $75,000 in each fiscal year shall be distributed by   14,856       

the Department of Education to the Ohio University Leadership      14,858       

Project.                                                                        

      Of the foregoing appropriation item 200-410, Professional    14,860       

Development, up to $500,000 each year shall be used by the         14,862       

Department of Education to work with school districts in           14,863       

coordinating and improving the training and performance of         14,865       

classroom teachers.                                                             

      Of the foregoing appropriation item 200-410, Professional    14,867       

Development, $25,000 in each fiscal year shall be used by the      14,869       

Lake County Educational Service Center and $25,000 in each fiscal  14,871       

year shall be used by the Geauga County Educational Service        14,872       

Center.  Both projects shall be used for professional teacher      14,874       

development of innovative teaching practices in science and math.               

      Of the foregoing appropriation item 200-410, Professional    14,876       

Development, $500,000 in each fiscal year shall be used by the     14,878       

Rural Appalachian Initiative to create professional development    14,879       

academies for teachers, principals, and superintendents in the     14,881       

Appalachian region.                                                             

      Of the foregoing appropriation item 200-410, Professional    14,883       

Development, up to $1,800,000 in fiscal year 1999 shall be used    14,885       

by the Department of Education in cooperation with the Regional    14,886       

Professional Development Centers to train mentor teachers and      14,888       

provide stipends of $1,500 per year to each mentor teacher to      14,889       

assist in the professional development of beginning teachers.      14,890       

      Of the foregoing appropriation item 200-410, Professional    14,892       

Development, up to $1,000,000 in fiscal year 1999 shall be used    14,893       

by the Department of Education in cooperation with the Regional    14,895       

Professional Development Centers to train teacher assessors and    14,897       

provide stipends of $2,500 per year to each teacher assessor to    14,898       

assist in the evaluation of the classroom performance of           14,899       

beginning teachers.                                                14,900       

      Of the foregoing appropriation item 200-410, Professional    14,902       

Development, $1,321,292 shall be used by the Department of         14,903       

                                                          333    

                                                                 
Education to establish programs targeted at recruiting             14,904       

under-represented populations into the teaching profession.  In    14,905       

each year, the appropriation item shall be used by the department  14,906       

to include, but not be limited to, alternative teacher licensure   14,907       

or certification programs emphasizing the recruitment of highly    14,909       

qualified minority candidates into teaching, including                          

emphasizing the recruitment of highly qualified minority           14,910       

candidates into teaching positions in schools which have a high    14,911       

percentage of minority students.  The recruitment programs shall   14,913       

also target recruiting qualified candidates available as a result               

of downsizing of the military and business sectors.  Funding       14,914       

shall also be targeted to statewide, regional, and local programs  14,915       

that are competitively selected as promising programs              14,916       

demonstrating the potential of significantly increasing Ohio's     14,917       

minority teaching force.                                                        

      Of the foregoing appropriation item 200-410, Professional    14,919       

Development, $500,000 in each fiscal year shall be used to         14,921       

establish or enhance alternative disciplinary schools by           14,922       

providing grants of $100,000 annually to each of the following     14,924       

programs:  Wood County Alternative School Program, Interval        14,925       

Opportunity School in Summit County, Portage County Opportunity    14,927       

School in Ravenna, Auglaize County Alternative School Program,     14,929       

and Licking County Alternative School Program.  Such pilot         14,931       

programs shall encourage collaborative relationships with                       

juvenile courts and other agencies to develop effective teaching   14,932       

and learning programs.                                                          

      Of the foregoing appropriation item 200-410, Professional    14,934       

Development, $200,000 in each fiscal year shall be provided to     14,936       

the Stark County Schools Teacher Technical Training Center.        14,938       

      Of the foregoing appropriation item 200-410, Professional    14,940       

Development, $9,659,713 shall be distributed on a per teacher      14,941       

basis to all school districts, joint vocational school districts,  14,943       

and chartered nonpublic schools for locally developed teacher                   

training and professional development and for the establishment    14,945       

                                                          334    

                                                                 
of local professional development committees.  School districts    14,946       

and joint vocational school districts shall not be precluded from  14,947       

using these funds for cooperative activities on a county or        14,948       

regional basis.                                                                 

      Of the foregoing appropriation item 200-410, Professional    14,950       

Development, $2,875,000 shall be used by the Department of         14,951       

Education to develop a peer review program for teachers, to        14,952       

provide training, and to implement the peer review program in      14,953       

school districts on a pilot basis in fiscal year 1998.  Funds for  14,954       

fiscal year 1999 shall be awarded on a competitive basis to        14,955       

school districts wishing to implement peer review programs.  In    14,956       

each fiscal year, $640,000 shall be distributed to the Regional    14,957       

Professional Development Centers to provide training for mentor    14,958       

teachers and for leadership teams from districts implementing      14,959       

peer review programs.                                              14,960       

      Of the foregoing appropriation item 200-410, Professional    14,962       

Development, $125,000 in each fiscal year shall be used by the     14,963       

Rural Appalachian Initiative to develop a peer review and          14,965       

coaching model whereby teachers coach one another.  In addition,   14,966       

the funds shall be used to train and provide stipends for teacher               

coaches and mentors, and to develop training modules for           14,967       

professional improvement through establishing and attaining        14,968       

goals.                                                                          

      Of the foregoing appropriation item 200-410, Professional    14,970       

Development, $1,650,000 shall be used by the Department of         14,972       

Education to pay the application fee for teachers from public and  14,974       

chartered nonpublic schools applying to the National Board for     14,975       

Professional Teaching Standards for professional teaching          14,978       

certificates or licenses that the board offers, and to provide     14,979       

grants in each fiscal year to recognize and reward teachers who    14,980       

become certified by the board pursuant to section 3319.55 of the                

Revised Code.                                                      14,981       

      In each fiscal year, the appropriation item shall be used    14,983       

to pay for the first 400 applications received by the department.  14,985       

                                                          335    

                                                                 
Each prospective applicant for certification or licensure shall    14,986       

submit an application to the Department of Education.  When the    14,987       

department has collected a group of applications, but no later                  

than 30 days after receipt of the first application in a group,    14,988       

it shall send the applications to the National Board for           14,989       

Professional Teaching Standards along with a check to cover the    14,991       

cost of the application fee for all applicants in that group.      14,992       

      Of the foregoing appropriation item 200-410, Professional    14,994       

Development, up to $300,000 shall be used each fiscal year by the  14,995       

Department of Education to support the connection of teacher       14,996       

applicants to university programs that enhance applicant learning  14,998       

and professional development during the National Board             14,999       

Certification process.                                                          

      Of the foregoing appropriation item 200-410, Professional    15,001       

Development, $2,456,110 shall be used by the Department of         15,003       

Education to expand the pilot residency programs established       15,004       

pursuant to provisions of Am. Sub. H.B. 152 of the 120th General   15,006       

Assembly.                                                                       

      The Department of Education shall select eligible beginning  15,009       

teachers to participate in a year-long entry year program which    15,010       

provides for guidance and coaching by experienced school district  15,011       

and university faculty and regular teacher performance             15,012       

assessment.  The program is designed to assess each beginning      15,013       

teacher with the Education Testing Service's Praxis III            15,014       

examination.  These funds shall be used to support the             15,015       

supervisory, teaching, and assessment services associated with     15,016       

the pilot residency program in urban, suburban, and rural sites.   15,017       

      Sec. 50.07.  Potential Value Recomputation                   15,022       

      (A)  Notwithstanding division (A)(2) of section 3317.022 of  15,024       

the Revised Code in fiscal year 1999 the Department of Education   15,026       

shall first calculate all state basic aid payments to school       15,027       

districts required under Chapter 3317. of the Revised Code and     15,028       

other sections of Am. Sub. H.B. 215 and Am. Sub. H.B. 650 of the   15,029       

122nd General Assembly under which payments are made from          15,031       

                                                          336    

                                                                 
appropriation items 200-501, School Foundation Basic Allowance     15,033       

BASE COST FUNDING, and 200-670, School Foundation Basic Allowance  15,035       

BASE COST FUNDING, as if such division had not been enacted.       15,036       

Such calculated amounts shall be paid to school districts in       15,037       

accordance with section 3317.01 of the Revised Code and Am. Sub.   15,039       

H.B. 650 of the 122nd General Assembly.                            15,040       

      (B)  After the calculation required by division (A) of this  15,042       

section, the department shall recalculate all state basic aid      15,043       

payments to school districts required under Chapter 3317. of the   15,044       

Revised Code and other sections of Am. Sub. H.B. 215 and Am. Sub.  15,045       

H.B. 650 of the 122nd General Assembly, utilizing in such          15,046       

recalculation the provisions of division (A)(2) of section         15,047       

3317.022 of the Revised Code.  From the additional available       15,048       

money, the department shall pay each district an amount equal to   15,049       

the difference between its calculated amount of basic aid under    15,050       

division (A) of this section and its recalculated amount under     15,052       

this division.  If there is not enough additional money to pay     15,053       

such amounts to all school districts, the department shall pay     15,054       

each district a percentage of such amount equal to the percentage  15,055       

the total amount of additional available money represents of the   15,056       

total amount of money that would be necessary to make the          15,057       

payments prescribed under this division to all districts.          15,058       

      Sec. 50.09.  Adult Literacy Education                        15,063       

      The foregoing appropriation item 200-509, Adult Literacy     15,065       

Education, shall be used to support Adult Basic and Literacy       15,066       

Education instructional programs, the State Literacy Resource      15,067       

Center program, and the State Advisory Council on Adult Education  15,068       

and Literacy.                                                      15,069       

      Of the foregoing appropriation item 200-509, Adult Literacy  15,072       

Education, up to $410,000 in fiscal year 1998 and $512,500 in      15,073       

fiscal year 1999 shall be used to satisfy state match              15,074       

requirements for the support and operation of the State Literacy   15,075       

Resource Center and the State Advisory Council on Adult Education  15,076       

and Literacy.                                                                   

                                                          337    

                                                                 
      Of the foregoing appropriation item 200-509, Adult Literacy  15,079       

Education, up to $50,000 in each fiscal year shall be used to      15,080       

provide funds to literacy councils that have not previously        15,081       

received funding.  Each of these councils, in order to receive     15,082       

funds, shall have its plan of service approved by the local        15,083       

Family and Children First council.                                              

      The remainder shall be used to continue to satisfy the       15,085       

state match requirement for the support and operation of the Ohio  15,086       

Department of Education administered instructional grant program   15,087       

for Adult Basic and Literacy Education in accordance with the      15,088       

department's state plan for Adult Basic and Literacy Education as  15,089       

approved by the State Board of Education and the Secretary of the  15,090       

United States Department of Education.                             15,091       

      Auxiliary Services                                           15,093       

      The foregoing appropriation item 200-511, Auxiliary          15,095       

Services, shall be used by the State Board of Education for the    15,096       

purpose of implementing section 3317.06 of the Revised Code.  Of   15,097       

the appropriation, up to $1,000,000 in each fiscal year of the     15,098       

biennium may be used for payment of the Post-Secondary Enrollment  15,099       

Options Program for nonpublic students pursuant to section         15,100       

3365.10 of the Revised Code.                                       15,101       

      Driver Education                                             15,103       

      The foregoing appropriation item 200-512, Driver Education,  15,105       

shall be used by the State Board of Education for subsidizing      15,106       

driver education courses for which the State Board of Education    15,107       

prescribes minimum standards pursuant to section 3301.07 of the    15,108       

Revised Code and courses for students released by high school      15,109       

principals to attend commercial driver training schools licensed   15,110       

under Chapter 4508. of the Revised Code.                           15,111       

      Post-Secondary/Adult Vocational Education                    15,113       

      The foregoing appropriation item 200-514,                    15,115       

Post-Secondary/Adult Vocational Education, shall be used by the    15,116       

State Board of Education to provide post-secondary/adult           15,117       

vocational education pursuant to sections 3313.52 and 3313.53 of   15,118       

                                                          338    

                                                                 
the Revised Code.                                                  15,119       

      Of the foregoing appropriation item 200-514,                 15,121       

Post-Secondary/Adult Vocational Education, up to $500,000 in each  15,123       

fiscal year shall be allocated for the Ohio Career Information     15,124       

System (OCIS) and used for the dissemination of career             15,125       

information data to public schools, libraries, rehabilitation      15,126       

centers, two- and four-year colleges and universities, and other   15,127       

governmental units.                                                15,128       

      Of the foregoing appropriation item 200-514,                 15,130       

Post-Secondary/Adult Vocational Education, up to $30,000 in each   15,131       

fiscal year shall be used for the statewide coordination of the    15,132       

activities of the Ohio Young Farmers.                                           

      Disadvantaged Pupil Impact Aid