SENATORS Blessing, Mead, Spada, Amstutz, DiDonato, McLin

To amend sections 742.32, 742.35, 742.351, 742.38, and

1

742.56 and to enact sections 742.352 and 742.353 of

2

the Revised Code to modify the penalties assessed

3

against employers who fail to submit certain

4

reports and information to the Ohio Police and Fire

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Pension Fund and to reduce the amount of certain

6

penalties currently owed by employers.

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

Section 1. That sections 742.32, 742.35, 742.351, 742.38, and	8
742.56 be amended and sections 742.352 and 742.353 of the Revised	9
Code be enacted to read as follows:	10

Sec. 742.32.  The fiscal officer of each employer shall	11
transmit monthly to the secretary of the board of trustees of the	12
Ohio police and fire pension fund a report of employee deductions	13
in such form as the board requires. The report shall show all	14
deductions for the fund made pursuant to section 742.31 of the	15
Revised Code and shall be accompanied by payments covering the	16
total of such deductions. The report shall also include the name	17
of each member for whom deductions were made and the portion of	18
the payment attributed to that member. Separate payments shall be	19
so transmitted for that portion of such deductions made from the	20
salaries of members of the police department and for that portion	21
of such deductions made from the salaries of members of the fire	22
department. The report and payment are due the last day of the	23
month following the last day of the reporting period. A penalty	24
of five per cent of the total amount due for the particular	25
reporting perioddetermined under section 742.352 of the Revised	26
Code shall be addedwhenassessed if any of the following occur:	27

(A) The report, together with paymentsis received by the	28
board after the due date or is not in the form required by the	29
board.	30

(B) Payments to cover the total amount due from the salaries	31
of all employees of the employer, is transmitted thirty or more	32
days after the last day of the reporting periodare received by	33
the board after the due date. The	34

The penalty shall be added to and collected on the next	35
succeeding regular employer billing. If the penalty is not paid	36
within three monthssixty days after it is added to the regular	37
employer billing, interest at a rate determined by the board may	38
be charged on the total amount due and the amount of the penalty	39
from the date the amount is due to the date of payment.	40

The secretary of the board, after making a record of all such	41
receipts and crediting each employee's individual account with the	42
amount deducted from the employee's salary, shall deposit the	43
receipts with the treasurer of state for use as provided by this	44
chapter. Where an employer fails to deduct contributions for any	45
employee and transmit such amounts to the fund, the board may make	46
a determination of the employee's liability for contributions and	47
certify to the employer the amounts due for collection in the same	48
manner and subject to the same penalties as payments due the	49
employer's contributions funds.	50

Sec. 742.35. EachAs used in this section, "calendar	51
quarter" means the three-month period ending on the last day of	52
March, June, September, or December.	53

Each employer shall pay its annual police officer employers'	54
contribution and firefighter employers' contribution in four equal	55
installments promptly as provided in sections 742.33 and 742.34 of	56
the Revised Code. SixtyIf an employer fails to make a payment on	57
or before the date that is sixty days after the date an	58
installment is due, any amounts which remain unpaid shall be	59
subject tolast day of the calendar quarter, a penalty for late	60
payment in the amount of five per centdetermined under section	61
742.352 of the Revised Code shall be assessed against the	62
employer. In addition, interest on past due accounts and	63
penalties may be charged at a rate determined by the board of	64
trustees of the Ohio police and fire pension fund from the date	65
the installment is due to the date of payment.	66

Upon certification by the board to the county auditor of an	67
amount due from any employer within the county who is subject to	68
this chapter, by reason of such employer's delinquency in making	69
employer contribution payments to the fund for past yearsmonths,	70
such amount shall be withheld from such employer from any funds in	71
the hands of the county treasurer for distribution to such	72
employer. Upon receipt of such certification, the county auditor	73
shall draw a warrant against such funds in favor of the fund for	74
the amount.	75

Sec. 742.351.  (A) On receipt of written notice of a	76
member's election to retire under division (C) of section 742.37	77
of the Revised Code, the Ohio police and fire pension fund shall	78
request from the employer verification of the member's termination	79
date and any other information the fund determines necessary to	80
calculate and pay a pension under that division. The request	81
shall be on a form created by the fund and specify the date by	82
which the information must be received by the fund, which shall be	83
sixty days after the form is sent by the fund.	84

(B)(1) On receipt of a request for information under	85
division (A) of this section, the employer shall complete the form	86
and return it to the fund not later than the date specified by the	87
fund.	88

(2) If the fund does not receive the completed form by the	89
specified date, the fund shall send notice by certified mail to	90
the employer that unless the completed form is received not later	91
than thirty days after the specified date a finepenalty will be	92
imposed.	93

(C) The fund shall assess against an employer that fails to	94
return the completed form by the end of the period described in	95
division (B)(2) of this section a fine of one hundred dollars per	96
day. The period for which the fine shall be imposed begins the	97
thirty-first day after the date notice is mailed under division	98
(B)(2) of this section and ends on the day before the day the	99
completed form is received by the fund. Any amount due from an	100
employer under this division shall be collected from the county	101
auditor in the manner provided in section 742.35 of the Revised	102
Code for delinquent contributionspenalty determined under section	103
742.353 of the Revised Code.	104

(D) The fund shall make one or more monthly payments to a	105
member whose pension does not commence by the ninety-first day	106
after the fund sends a request for information under division (A)	107
of this section due to the employer's failure to return the	108
completed form required under this section. Payment under this	109
division shall commence on the first day of the second month	110
following a month that includes a day for which an assessment	111
against the employer is required under division (C) of this	112
section. The payment shall be an amount equal to one hundred	113
dollars for every day that an assessment is requiredthe penalty	114
assessed under division (C) of this section less any	115
administrative costs incurred by the fund in complying with this	116
section. Payment shall continue on a monthly basis until the	117
member receives the total amount attributable to the required	118
penalty for an employer's failure to return the form that was	119
requested for that member's information.	120

Sec. 742.352. (A) Unless rules are adopted under division	121
(C) of this section, the penalties for failing to transmit reports	122
and payment in accordance with sections 742.32 and 742.56 of the	123
Revised Code or payments in accordance with section 742.35 of the	124
Revised Code shall be as follows:	125

(1) If a report or payment is at least one but not more	126
than ten days past due, one hundred dollars;	127

(2) If a report or payment is at least eleven but not more	128
than thirty days past due, the greater of one thousand dollars or	129
one per cent of the payment;	130

(3) If a report or payment is at least thirty-one but not	131
more than one hundred eighty days past due, the greater of three	132
thousand dollars or two per cent of the payment;	133

(4) If a report or payment is at least one hundred	134
eighty-one days but not more than two hundred ten days past due,	135
the greater of seven thousand five hundred dollars or five per	136
cent of the payment;	137

(5) If a report or payment is at least two hundred eleven	138
days past due, the sum of the penalty described in division (A)(4)	139
of this section and, for each day that the report or payment is	140
past due after two hundred ten days, fifty dollars.	141

(B) Any amount due from an employer under division (A) of	142
this section shall be collected from the county auditor in the	143
same manner as is provided in section 742.35 of the Revised Code.	144

(C) The board of trustees of the Ohio police and fire	145
pension fund may adopt rules to do all of the following:	146

(1) Establish penalties in amounts that do not exceed the	147
amounts described in this section;	148

(2) Establish standards to determine whether an employer	149
has submitted a report in the form required by the board;	150

(3) Lengthen the periods of time for employers to comply	151
with sections 742.32, 742.35, and 742.56 of the Revised Code.	152

Sec. 742.353. (A) Unless rules are adopted in accordance	153
with division (C) of this section, the penalties assessed under	154
sections 742.351 and 742.38 of the Revised Code shall be as	155
follows:	156

(1) If a form, report, or statement is at least one but not	157
more than ten days past due, one hundred dollars;	158

(2) If a form, report, or statement is at least eleven but	159
not more than thirty days past due, one thousand dollars;	160

(3) If a form, report, or statement is at least thirty-one	161
but not more than one hundred eighty days past due, three thousand	162
dollars;	163

(4) If a form, report, or statement is at least one hundred	164
eighty-one days but not more than two hundred ten days past due,	165
seven thousand five hundred dollars;	166

(5) If a form, report, or statement is at least two hundred	167
eleven days past due, the sum of seven thousand five hundred	168
dollars and, for each day that the form, report, or statement is	169
past due after two hundred ten days, three dollars and	170
thirty-seven cents.	171

The total of the penalties paid by an employer under this	172
section in a calendar year shall not exceed twenty thousand	173
dollars.	174

(B) Any amount due from an employer under division (A) of	175
this section shall be collected from the county auditor in the	176
same manner as is provided in section 742.35 of the Revised Code.	177

(C) The board of trustees of the Ohio police and fire	178
pension fund may adopt rules to do all of the following:	179

(1) Establish penalties in amounts that do not exceed the	180
amounts described in this section;	181

(2) Establish standards to determine whether an employer	182
has submitted a form, report, or statement in the form required by	183
the board;	184

(3) Lengthen the periods of time for employers to comply	185
with sections 742.351 and 742.38 of the Revised Code.	186

Sec. 742.38.  (A)(1) The board of trustees of the Ohio	187
police and fire pension fund shall adopt rules establishing	188
minimum medical testing and diagnostic standards or procedures to	189
be incorporated into physical examinations administered by	190
physicians to prospective members of the fund. The standards or	191
procedures shall include diagnosis and evaluation of the existence	192
of any heart disease, cardiovascular disease, or respiratory	193
disease. The rules shall specify the form of the physician's	194
report and the information to be included in it.	195

The board shall notify all employers of the establishment of	196
the minimum standards or procedures and shall include with the	197
notice a copy of the standards or procedures. The board shall	198
notify all employers of any changes made to the standards or	199
procedures. Once the standards or procedures take effect,	200
employers shall cause each prospective member of the fund to	201
submit to a physical examination that incorporates the standards	202
or procedures.	203

(2) Division (A)(2) of this section applies to an employee	204
who becomes a member of the fund on or after the date the minimum	205
standards or procedures described in division (A)(1) of this	206
section take effect. Not later than thirty days after such anFor	207
each employee becomes a member of the funddescribed in division	208
(A)(2) of this section, the employer shall forward to the board a	209
copy of the physician's report of a physical examination that	210
incorporates the standards or procedures described in division	211
(A)(1) of this section. If an employer fails to forward the	212
report in the form required by the board on or before the date	213
that is sixty days after the employee becomes a member of the	214
fund, the board shall assess against the employer a fine of one	215
hundred dollars per day, beginning with the first day after the	216
date the report is due and ending on the last day prior to the	217
date the report is received by the board. Any amount due from an	218
employer under division (A)(2) of this section may be collected	219
from the county auditor in the same manner as is provided in	220
section 742.35 of the Revised Codepenalty determined under	221
section 742.353 of the Revised Code.	222

(B) Application for a disability benefit may be made by a	223
member of the fund or, if the member is incapacitated as defined	224
in rules adopted by the board, by a person acting on the member's	225
behalf. Not later than fourteen days after receiving an	226
application for a disability benefit from a member or a person	227
acting on behalf of a member, the board shall notify the member's	228
employer that an application has been filed. The notice shall	229
state the member's position or rank. Not later than twenty-eight	230
days after receiving the notice or filing an application on behalf	231
of a member, the employer shall forward to the board a statement	232
certifying the member's job description and any other information	233
required by the board to process the application.	234

If the member applying for a disability benefit becomes a	235
member of the fund prior to the date the minimum standards or	236
procedures described in division (A)(1) of this section take	237
effect, the board may request from the member's employer a copy of	238
the physician's report of the member's physical examination taken	239
on entry into the police or fire department. Not later than	240
twenty-eight days after receiving a request from the board, the	241
employer shall forward a copy of the report or, if the employer	242
does not have a copy of the report, a written statement certifying	243
that the employer does not have a copy of the report. If an	244
employer fails to forward the report or statement in the form	245
required by the board on or before the date that is twenty-eight	246
days after the date of the request, the board shall assess against	247
the employer a fine of one hundred dollars per day, beginning with	248
the first day after the date the report or statement is due and	249
ending on the last day prior to the date the report or statement	250
is received by the board. Any amount due from an employer under	251
this division may be collected from the county auditor in the same	252
manner as is provided in section 742.35 of the Revised Code	253
penalty determined under section 742.353 of the Revised Code. The	254
board shall maintain the information submitted under this division	255
and division (A)(2) of this section in the member's file.	256

(C) For purposes of determining under division (D) of this	257
section whether a member of the fund is disabled, the board shall	258
adopt rules establishing objective criteria under which the board	259
shall make the determination. The rules shall include standards	260
that provide for all of the following:	261

(1) Evaluating a member's illness or injury on which an	262
application for disability benefits is based;	263

(2) Defining the occupational duties of a police officer or	264
firefighter;	265

(3) Providing for the board to assign competent and	266
disinterested physicians and vocational evaluators to conduct	267
examinations of a member;	268

(4) Requiring a written report for each disability	269
application that includes a summary of findings, medical opinions,	270
including an opinion on whether the illness or injury upon which	271
the member's application for disability benefits is based was	272
caused or induced by the actual performance of the member's	273
official duties, and any recommendations or comments based on the	274
medical opinions;	275

(5) Providing for the board to consider the member's	276
potential for retraining or reemployment.	277

(D) This division does not apply to members of the fund who	278
have elected to receive benefits and pensions in accordance with	279
division (A) or (B) of section 742.37 of the Revised Code or from	280
a police relief and pension fund or a firemen's relief and pension	281
fund in accordance with the rules of that fund in force on April	282
1, 1947.	283

(1) As used in division (D)(1) of this section:

284

(a) "Totally disabled" means a member of the fund is unable	285
to perform the duties of any gainful occupation for which the	286
member is reasonably fitted by training, experience, and	287
accomplishments. Absolute helplessness is not a prerequisite of	288
being totally disabled.	289

(b) "Permanently disabled" means a condition of disability	290
from which there is no present indication of recovery.	291

A member of the fund who is permanently and totally disabled	292
as the result of the performance of the member's official duties	293
as a member of a police or fire department shall be paid annual	294
disability benefits in accordance with division (A) of section	295
742.39 of the Revised Code. In determining whether a member of	296
the fund is permanently and totally disabled, the board shall	297
consider standards adopted under division (C) of this section	298
applicable to the determination.	299

(2) A member of the fund who is partially disabled as the	300
result of the performance of the member's official duties as a	301
member of a police or fire department shall, if the disability	302
prevents the member from performing those duties and impairs the	303
member's earning capacity, receive annual disability benefits in	304
accordance with division (B) of section 742.39 of the Revised	305
Code. In determining whether a member of the fund is partially	306
disabled, the board shall consider standards adopted under	307
division (C) of this section applicable to the determination.	308

(3) A member of the fund who is disabled as a result of	309
heart disease or any cardiovascular or respiratory disease of a	310
chronic nature, which disease or any evidence of which disease was	311
not revealed by the physical examination passed by the member on	312
entry into the department, is presumed to have incurred the	313
disease while performing the member's official duties, unless the	314
contrary is shown by competent evidence.	315

(4) A member of the fund who has completed five or more	316
years of active service in a police or fire department and has	317
incurred a disability not caused or induced by the actual	318
performance of the member's official duties as a member of the	319
department, or by the member's own negligence, shall if the	320
disability prevents the member from performing those duties and	321
impairs the member's earning capacity, receive annual disability	322
benefits in accordance with division (C) of section 742.39 of the	323
Revised Code. In determining whether a member of the fund is	324
disabled, the board shall consider standards adopted under	325
division (C) of this section applicable to the determination.	326

(5) The board shall notify a member of its final action	327
awarding a disability benefit to the member within thirty days of	328
the final action. The notice shall be sent by certified mail,	329
return receipt requested. Not later than ninety days after	330
receipt of notice from the board, the member shall elect, on a	331
form provided by the board, either to accept or waive the	332
disability benefit award. If the member elects to waive the	333
disability benefit award or fails to make an election within the	334
time period, the award is rescinded. A member who later seeks a	335
disability benefit award shall be required to make a new	336
application, which shall be dealt with in accordance with the	337
procedures used for original disability benefit applications.	338

A person is not eligible to apply for or receive disability	339
benefits under this division, section 742.39 of the Revised Code,	340
or division (C)(2), (3), (4), or (5) of former section 742.37 of	341
the Revised Code unless the person is a member of the fund on the	342
date on which the application for disability benefits is submitted	343
to the fund.	344

With the exception of persons who may make application for	345
increased benefits as provided in division (2) or (4) of this	346
section or division (C)(3) or (5) of former section 742.37 of the	347
Revised Code on or after July 24, 1986, or persons who may make	348
application for benefits as provided in section 742.26 of the	349
Revised Code, no person receiving a pension or benefit under this	350
section or division (C) of former section 742.37 of the Revised	351
Code may apply for any new, changed, or different benefit.	352

Sec. 742.56.  (A) The board of trustees of the Ohio police	353
and fire pension fund may by rule establish a payroll deduction	354
plan for payment of the following:	355

(1) The cost of service credit members of the fund are	356
eligible to purchase under this chapter;	357

(2) Charges for participation in programs established under	358
section 742.53 of the Revised Code.	359

(B) In addition to any other matter considered relevant by	360
the trustees, the rules shall specify all of the following:	361

(1) The types of service credit that may be paid for through	362
payroll deduction, including the section of the Revised Code that	363
authorizes the purchase of each type of service credit for which	364
payment may be made by payroll deduction;	365

(2) The procedure to be followed by a member to inform the	366
member's employer and the Ohio police and fire pension fund that	367
the member wishes to purchase service credit under this chapter or	368
pay for participation in programs established under section 742.53	369
of the Revised Code and chooses to pay for it through payroll	370
deduction;	371

(3) The procedure to be followed by the fund to determine	372
for each request the amount to be deducted, the number of	373
deductions to be made, and the interval at which deductions will	374
be made. The rules may provide for a minimum amount for each	375
deduction or a maximum number of deductions for the purchase of	376
any type of credit, but shall provide that no deduction may exceed	377
the member's net compensation after all deductions and	378
withholdings required by law.	379

(4) The procedure to be followed by employers in	380
transmitting amounts deducted from the salaries of their employees	381
to the fund;	382

(5) The procedure to be followed by the fund in crediting	383
service credit to members who choose to purchase it through	384
payroll deduction.	385

(C) If the trustees of the fund establish a payroll	386
deduction plan under this section, the trustees shall certify to	387
the member's employer for each member for which deductions are to	388
be made, the amount of each deduction and the payrolls from which	389
deductions are to be made. The employer shall make the deductions	390
as certified and transmit the amounts deducted in accordance with	391
the rules established by the trustees under this sectionon or	392
before the last day of the month following the last day of the	393
reporting period during which the deductions are made. The	394
deduction shall be accompanied by a report, in such form as the	395
board requires, that includes the name of each member for whom	396
deductions were made and the deductions attributed to that member.	397
If the employer fails to transmit the deductions or the report on	398
or before the last day of the month following the last day of the	399
reporting period during which the deductions are made, a penalty	400
determined under section 742.352 shall be assessed against the	401
employer. On certification by the board to the county auditor of	402
an amount due from an employer within the county who is subject to	403
this division, by reason of the employer's delinquency in	404
transmitting amounts due under this division for past months,	405
those amounts shall be withheld from the employer from any funds	406
in the hands of the county treasurer for distribution to the	407
employer. On receipt of the certification, the county auditor	408
shall draw a warrant against the funds in favor of the Ohio police	409
and fire pension fund for the amount.	410

(D) Rules adopted under this section shall not affect any	411
right to purchase service credit conferred by any other section of	412
the Revised Code, including the right of a member under any such	413
section to purchase only part of the service credit the member is	414
eligible to purchase.	415

Section 2. That existing sections 742.32, 742.35, 742.351,	416
742.38, and 742.56 of the Revised Code are hereby repealed.	417

Section 3. (A) As used in this section, "employer" has the	418
same meaning as in division (D) of section 742.01 of the Revised	419
Code.	420

(B)(1) Notwithstanding section 742.38 of the Revised Code,	421
as that section existed immediately prior to the effective date of	422
its amendment by this act, and subject to division (C) of this	423
section, the Board of Trustees of the Ohio Police and Fire Pension	424
Fund shall reduce by ninety per cent a fine incurred prior to the	425
effective date of this section under division (A)(2) of section	426
742.38 of the Revised Code if, prior to that date, the Board	427
received from the employer who is subject to the fine the report	428
that is the subject of the fine and the report was in the form	429
provided in rules adopted by the Board. If the total amount of	430
outstanding fines assessed against an employer under division	431
(A)(2) of section 742.38 of the Revised Code exceeds $30,000 after	432
the reduction required by this division, the board shall further	433
reduce the total amount of the outstanding fines to $30,000.	434

(2) Notwithstanding sections 742.32 and 742.35 of the	435
Revised Code, as those sections existed immediately prior to the	436
effective date of their amendment by this act, and subject to	437
division (C) of this section, the Board shall reduce by fifty per	438
cent a penalty incurred under section 742.32 or 742.35 of the	439
Revised Code during the period beginning January 1, 2000, and	440
ending on the effective date of this section, if on or before the	441
date that is six months after the date the report and payment were	442
due, the Board receives from the employer the report and payment	443
that are the subject of the penalty and the report is in the form	444
provided in rules adopted by the Board.	445

(C)(1) Not later than June 1, 2002, an employer shall pay to	446
the Fund the amount of all fines and penalties described in	447
division (B) of this section, as reduced under this section.	448

(2) If an employer fails to pay all amounts due in	449
accordance with division (C)(1) of this section or to file all	450
required reports, the Board shall reinstate to the original amount	451
any fine or penalty that was reduced and the employer shall pay to	452
the Fund the reinstated fine or penalty amount. If the employer	453
fails to pay the reinstated fine or penalty amount, that amount	454
shall be collected from the county auditor in the same manner as	455
is provided in section 742.35 of the Revised Code.	456

(3) To each employer that, prior to the effective date of	457
this section, paid the full amount of a fine or penalty reduced	458
under division (B) of this section, the Board shall either refund	459
the amount of the reduction or use the amount to reduce any	460
outstanding amounts owed by the employer to the Fund under Chapter	461
742. of the Revised Code.	462

(D) Notwithstanding sections 117.28, 117.30, 117.33, 117.36,	463
117.42, and 131.02 of the Revised Code, no civil action shall be	464
instituted to recover the amount of a reduction made under	465
division (B)(1) or (2) of this section. An employer who meets the	466
requirements of divisions (B) and (C)(1) or divisions (B) and	467
(C)(3) of this section shall not be required to reimburse the Fund	468
for any amount not paid as the result of the reduction.	469