SENATORS Jacobson, Harris, Blessing, Carnes, Jordan, Mumper, Nein, Wachtmann, White

To amend sections 111.15, 119.01, 121.24, and 1322.062

1

and to enact sections 1.63, 1349.25, 1349.26,

2

1349.27, 1349.29, 1349.30, 1349.31, 1349.32,

3

1349.33, 1349.34, 1349.35, 1349.36, and 1349.37 of

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the Revised Code and to amend Section 32 of Am.

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Sub. H.B. 94 of the 124th General Assembly to

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conform Ohio law with the federal Home Ownership

7

and Equity Protection Act of 1994 with respect to

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specified consumer loans, to prohibit other

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practices relative to those loans, to create the

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Office of Consumer Affairs within the Division of

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Financial Institutions, to state the intent of the

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General Assembly on the relationship of state and

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local laws regarding the regulation of loans and

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other forms of credit, to establish the Predatory

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Lending Study Committee to report to the General

16

Assembly about predatory lending practices in

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mortgage lending or origination, and to make an

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appropriation.

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

Section 1. That sections 111.15, 119.01, 121.24, and 1322.062	20
be amended and sections 1.63, 1349.25, 1349.26, 1349.27, 1349.29,	21
1349.30, 1349.31, 1349.32, 1349.33, 1349.34, 1349.35, 1349.36, and	22
1349.37 of the Revised Code be enacted to read as follows:	23

Sec. 1.63. (A) The state solely shall regulate the business	24
of originating, granting, servicing, and collecting loans and	25
other forms of credit in the state and the manner in which any	26
such business is conducted, and this regulation shall be in lieu	27
of all other regulation of such activities by any municipal	28
corporation or other political subdivision.	29

(B) Any ordinance, resolution, regulation, or other action	30
by a municipal corporation or other political subdivision to	31
regulate, directly or indirectly, the origination, granting,	32
servicing, or collection of loans or other forms of credit	33
constitutes a conflict with the Revised Code, including, but not	34
limited to, Titles XI, XIII, XVII, and XLVII, and with the uniform	35
operation throughout the state of lending and other credit	36
provisions, and is preempted.	37

(C) Any ordinance, resolution, regulation, or other action	38
by a municipal corporation or other political subdivision	39
constitutes a conflict with the Revised Code, including, but not	40
limited to, Titles XI, XIII, XVII, and XLVII, and is pre-empted,	41
if the ordinance, resolution, regulation, or other action does	42
either of the following:	43

(1) Disqualifies a person, or its subsidiaries or	44
affiliates, from doing business with such municipal corporation or	45
other political subdivision based upon the acts or practices of	46
such person, or its subsidiaries or affiliates, as an originator,	47
grantor, servicer, or collector of loans or other forms of credit;	48

(2) Imposes reporting requirements or other obligations upon	49
a person, or its subsidiaries or affiliates, based upon such	50
person's, or its subsidiaries' or affiliates', acts or practices	51
as an originator, grantor, servicer, or collector of loans or	52
other forms of credit.	53

(D) If any provision of this section, or any application of	54
any provision of this section, is for any reason held to be	55
illegal or invalid, the illegality or invalidity shall not affect	56
any legal and valid provision or application of this section, and	57
the provisions and applications of this section shall be	58
severable.	59

(E) Nothing in this section shall be construed to invalidate	60
or prohibit any ordinance, resolution, regulation, or other action	61
by a municipal corporation or other political subdivision to	62
establish and administer voluntary neighborhood reinvestment	63
programs in furtherance of the goals and purposes of the	64
"Community Reinvestment Act of 1977," 91 Stat. 1147, 12 U.S.C.A.	65
2901, as amended.	66

(F) Nothing in this section shall be construed to	67
invalidate any ordinance, resolution, regulation, or other action	68
by a municipal corporation or other political subdivision that is	69
required to meet the criteria for adequacy of law established by	70
the United States department of housing and urban development in	71
order to obtain certification as a fair housing assistance	72
program.	73

Sec. 111.15.  (A) As used in this section:

74

(1) "Rule" includes any rule, regulation, bylaw, or standard	75
having a general and uniform operation adopted by an agency under	76
the authority of the laws governing the agency; any appendix to a	77
rule; and any internal management rule. "Rule" does not include	78
any guideline adopted pursuant to section 3301.0714 of the Revised	79
Code, any order respecting the duties of employees, any finding,	80
any determination of a question of law or fact in a matter	81
presented to an agency, or any rule promulgated pursuant to	82
Chapter 119., section 4141.14, division (C)(1) or (2) of section	83
5117.02, or section 5703.14 of the Revised Code. "Rule" includes	84
any amendment or rescission of a rule.	85

(2) "Agency" means any governmental entity of the state and	86
includes, but is not limited to, any board, department, division,	87
commission, bureau, society, council, institution, state college	88
or university, community college district, technical college	89
district, or state community college. "Agency" does not include	90
the general assembly, the controlling board, the adjutant	91
general's department, or any court.	92

(3) "Internal management rule" means any rule, regulation,	93
bylaw, or standard governing the day-to-day staff procedures and	94
operations within an agency.	95

(4) "Substantive revision" has the same meaning as in	96
division (J) of section 119.01 of the Revised Code.	97

(B)(1) Any rule, other than a rule of an emergency nature,	98
adopted by any agency pursuant to this section shall be effective	99
on the tenth day after the day on which the rule in final form and	100
in compliance with division (B)(3) of this section is filed as	101
follows:	102

(a) The rule shall be filed in electronic form with both the	103
secretary of state and the director of the legislative service	104
commission;	105

(b) The rule shall be filed in electronic form with the	106
joint committee on agency rule review. Division (B)(1)(b) of this	107
section does not apply to any rule to which division (D) of this	108
section does not apply.	109

An agency that adopts or amends a rule that is subject to	110
division (D) of this section shall assign a review date to the	111
rule that is not later than five years after its effective date.	112
If no review date is assigned to a rule, or if a review date	113
assigned to a rule exceeds the five-year maximum, the review date	114
for the rule is five years after its effective date. A rule with	115
a review date is subject to review under section 119.032 of the	116
Revised Code. This paragraph does not apply to a rule of a state	117
college or university, community college district, technical	118
college district, or state community college.	119

If all filings are not completed on the same day, the rule	120
shall be effective on the tenth day after the day on which the	121
latest filing is completed. If an agency in adopting a rule	122
designates an effective date that is later than the effective date	123
provided for by division (B)(1) of this section, the rule if filed	124
as required by such division shall become effective on the later	125
date designated by the agency.	126

Any rule that is required to be filed under division (B)(1)	127
of this section is also subject to division (D) of this section if	128
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or	129
(8) of this section.	130

(2) A rule of an emergency nature necessary for the	131
immediate preservation of the public peace, health, or safety	132
shall state the reasons for the necessity. The emergency rule, in	133
final form and in compliance with division (B)(3) of this section,	134
shall be filed in electronic form with the secretary of state, the	135
director of the legislative service commission, and the joint	136
committee on agency rule review. The emergency rule is effective	137
immediately upon completion of the latest filing, except that if	138
the agency in adopting the emergency rule designates an effective	139
date, or date and time of day, that is later than the effective	140
date and time provided for by division (B)(2) of this section, the	141
emergency rule if filed as required by such division shall become	142
effective at the later date, or later date and time of day,	143
designated by the agency.	144

An emergency rule becomes invalid at the end of the ninetieth	145
day it is in effect. Prior to that date, the agency may file the	146
emergency rule as a nonemergency rule in compliance with division	147
(B)(1) of this section. The agency may not refile the emergency	148
rule in compliance with division (B)(2) of this section so that,	149
upon the emergency rule becoming invalid under such division, the	150
emergency rule will continue in effect without interruption for	151
another ninety-day period.	152

(3) An agency shall file a rule under division (B)(1) or (2)	153
of this section in compliance with the following standards and	154
procedures:	155

(a) The rule shall be numbered in accordance with the	156
numbering system devised by the director for the Ohio	157
administrative code.	158

(b) The rule shall be prepared and submitted in compliance	159
with the rules of the legislative service commission.	160

(c) The rule shall clearly state the date on which it is to	161
be effective and the date on which it will expire, if known.	162

(d) Each rule that amends or rescinds another rule shall	163
clearly refer to the rule that is amended or rescinded. Each	164
amendment shall fully restate the rule as amended.	165

If the director of the legislative service commission or the	166
director's designee gives an agency notice pursuant to section	167
103.05 of the Revised Code that a rule filed by the agency is not	168
in compliance with the rules of the legislative service	169
commission, the agency shall within thirty days after receipt of	170
the notice conform the rule to the rules of the commission as	171
directed in the notice.	172

(C) All rules filed pursuant to divisions (B)(1)(a) and (2)	173
of this section shall be recorded by the secretary of state and	174
the director under the title of the agency adopting the rule and	175
shall be numbered according to the numbering system devised by the	176
director. The secretary of state and the director shall preserve	177
the rules in an accessible manner. Each such rule shall be a	178
public record open to public inspection and may be transmitted to	179
any law publishing company that wishes to reproduce it.	180

(D) At least sixty-five days before a board, commission,	181
department, division, or bureau of the government of the state	182
files a rule under division (B)(1) of this section, it shall file	183
the full text of the proposed rule in electronic form with the	184
joint committee on agency rule review, and the proposed rule is	185
subject to legislative review and invalidation under division (I)	186
of section 119.03 of the Revised Code. If a state board,	187
commission, department, division, or bureau makes a substantive	188
revision in a proposed rule after it is filed with the joint	189
committee, the state board, commission, department, division, or	190
bureau shall promptly file the full text of the proposed rule in	191
its revised form in electronic form with the joint committee. The	192
latest version of a proposed rule as filed with the joint	193
committee supersedes each earlier version of the text of the same	194
proposed rule. Except as provided in division (F) of this	195
section, a state board, commission, department, division, or	196
bureau shall also file the rule summary and fiscal analysis	197
prepared under section 121.24 or 127.18 of the Revised Code, or	198
both, in electronic form along with a proposed rule, and along	199
with a proposed rule in revised form, that is filed under this	200
division.	201

As used in this division, "commission" includes the public	202
utilities commission when adopting rules under a federal or state	203
statute.	204

This division does not apply to any of the following:

205

(1) A proposed rule of an emergency nature;

206

(2) A rule proposed under section 1121.05, 1121.06, 1155.18,	207
1349.33, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40,	208
4123.411, 4123.44, or 4123.442 of the Revised Code;	209

(3) A rule proposed by an agency other than a board,	210
commission, department, division, or bureau of the government of	211
the state;	212

(4) A proposed internal management rule of a board,	213
commission, department, division, or bureau of the government of	214
the state;	215

(5) Any proposed rule that must be adopted verbatim by an	216
agency pursuant to federal law or rule, to become effective within	217
sixty days of adoption, in order to continue the operation of a	218
federally reimbursed program in this state, so long as the	219
proposed rule contains both of the following:	220

(a) A statement that it is proposed for the purpose of	221
complying with a federal law or rule;	222

(b) A citation to the federal law or rule that requires	223
verbatim compliance.	224

(6) An initial rule proposed by the director of health to	225
impose safety standards, quality-of-care standards, and	226
quality-of-care data reporting requirements with respect to a	227
health service specified in section 3702.11 of the Revised Code,	228
or an initial rule proposed by the director to impose quality	229
standards on a facility listed in division (A)(4) of section	230
3702.30 of the Revised Code, if section 3702.12 of the Revised	231
Code requires that the rule be adopted under this section;	232

(7) A rule of the state lottery commission pertaining to	233
instant game rules.	234

If a rule is exempt from legislative review under division	235
(D)(5) of this section, and if the federal law or rule pursuant to	236
which the rule was adopted expires, is repealed or rescinded, or	237
otherwise terminates, the rule is thereafter subject to	238
legislative review under division (D) of this section.	239

(E) Whenever a state board, commission, department,	240
division, or bureau files a proposed rule or a proposed rule in	241
revised form under division (D) of this section, it shall also	242
file the full text of the same proposed rule or proposed rule in	243
revised form in electronic form with the secretary of state and	244
the director of the legislative service commission. Except as	245
provided in division (F) of this section, a state board,	246
commission, department, division, or bureau shall file the rule	247
summary and fiscal analysis prepared under section 121.24 or	248
127.18 of the Revised Code, or both, in electronic form along with	249
a proposed rule or proposed rule in revised form that is filed	250
with the secretary of state or the director of the legislative	251
service commission.	252

(F) Except as otherwise provided in this division, the	253
auditor of state or the auditor of state's designee is not	254
required to file a rule summary and fiscal analysis along with a	255
proposed rule, or proposed rule in revised form, that the auditor	256
of state proposes under section 117.12, 117.19, 117.38, or 117.43	257
of the Revised Code and files under division (D) or (E) of this	258
section. If, however, the auditor of state or the designee	259
prepares a rule summary and fiscal analysis of the original	260
version of such a proposed rule for purposes of complying with	261
section 121.24 of the Revised Code, the auditor of state or	262
designee shall file the rule summary and fiscal analysis in	263
electronic form along with the original version of the proposed	264
rule filed under division (D) or (E) of this section.	265

Sec. 119.01.  As used in sections 119.01 to 119.13 of the	266
Revised Code:	267

(A)(1) "Agency" means, except as limited by this division,	268
any official, board, or commission having authority to promulgate	269
rules or make adjudications in the civil service commission, the	270
division of liquor control, the department of taxation, the	271
industrial commission, the bureau of workers' compensation, the	272
functions of any administrative or executive officer, department,	273
division, bureau, board, or commission of the government of the	274
state specifically made subject to sections 119.01 to 119.13 of	275
the Revised Code, and the licensing functions of any	276
administrative or executive officer, department, division, bureau,	277
board, or commission of the government of the state having the	278
authority or responsibility of issuing, suspending, revoking, or	279
canceling licenses.	280

Except as otherwise provided in division (I) of this section,	281
sections 119.01 to 119.13 of the Revised Code do not apply to the	282
public utilities commission. Sections 119.01 to 119.13 of the	283
Revised Code do not apply to the utility radiological safety	284
board; to the controlling board; to actions of the superintendent	285
of financial institutions and the superintendent of insurance in	286
the taking possession of, and rehabilitation or liquidation of,	287
the business and property of banks, savings and loan associations,	288
savings banks, credit unions, insurance companies, associations,	289
reciprocal fraternal benefit societies, and bond investment	290
companies; or to any action that may be taken by the	291
superintendent of financial institutions under section 1113.03,	292
1121.05, 1121.06, 1121.10, 1125.09, 1125.12, 1125.18, 1155.18,	293
1157.01, 1157.02, 1157.10, 1163.22, 1165.01, 1165.02, 1165.10,	294
1349.33, 1733.35, 1733.361, 1733.37, 1733.412, or 1761.03 of the	295
Revised Code.	296

Sections 119.01 to 119.13 of the Revised Code do not apply to	297
actions of the industrial commission or the bureau of workers'	298
compensation under sections 4123.01 to 4123.94 of the Revised Code	299
with respect to all matters of adjudication, and to the actions of	300
the industrial commission and bureau of workers' compensation	301
under division (D) of section 4121.32 and sections 4123.29,	302
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44, 4123.442,	303
and divisions (B), (C), and (E) of section 4131.14 of the Revised	304
Code.	305

(2) "Agency" also means any official or work unit having	306
authority to promulgate rules or make adjudications in the	307
department of job and family services, but only with respect to	308
both of the following:	309

(a) The adoption, amendment, or rescission of rules that	310
section 5101.09 of the Revised Code requires be adopted in	311
accordance with this chapter;	312

(b) The issuance, suspension, revocation, or cancellation of	313
licenses.	314

(B) "License" means any license, permit, certificate,	315
commission, or charter issued by any agency. "License" does not	316
include any arrangement whereby a person, institution, or entity	317
furnishes medicaid services under a provider agreement with the	318
department of job and family services pursuant to Title XIX of the	319
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as	320
amended.	321

(C) "Rule" means any rule, regulation, or standard, having a	322
general and uniform operation, adopted, promulgated, and enforced	323
by any agency under the authority of the laws governing such	324
agency, and includes any appendix to a rule. "Rule" does not	325
include any internal management rule of an agency unless the	326
internal management rule affects private rights and does not	327
include any guideline adopted pursuant to section 3301.0714 of the	328
Revised Code.	329

(D) "Adjudication" means the determination by the highest or	330
ultimate authority of an agency of the rights, duties, privileges,	331
benefits, or legal relationships of a specified person, but does	332
not include the issuance of a license in response to an	333
application with respect to which no question is raised, nor other	334
acts of a ministerial nature.	335

(E) "Hearing" means a public hearing by any agency in	336
compliance with procedural safeguards afforded by sections 119.01	337
to 119.13 of the Revised Code.	338

(F) "Person" means a person, firm, corporation, association,	339
or partnership.	340

(G) "Party" means the person whose interests are the subject	341
of an adjudication by an agency.	342

(H) "Appeal" means the procedure by which a person,	343
aggrieved by a finding, decision, order, or adjudication of any	344
agency, invokes the jurisdiction of a court.	345

(I) "Rule-making agency" means any board, commission,	346
department, division, or bureau of the government of the state	347
that is required to file proposed rules, amendments, or	348
rescissions under division (D) of section 111.15 of the Revised	349
Code and any agency that is required to file proposed rules,	350
amendments, or rescissions under divisions (B) and (H) of section	351
119.03 of the Revised Code. "Rule-making agency" includes the	352
public utilities commission. "Rule-making agency" does not	353
include any state-supported college or university.	354

(J) "Substantive revision" means any addition to,	355
elimination from, or other change in a rule, an amendment of a	356
rule, or a rescission of a rule, whether of a substantive or	357
procedural nature, that changes any of the following:	358

(1) That which the rule, amendment, or rescission permits,	359
authorizes, regulates, requires, prohibits, penalizes, rewards, or	360
otherwise affects;	361

(2) The scope or application of the rule, amendment, or	362
rescission.	363

(K) "Internal management rule" means any rule, regulation,	364
or standard governing the day-to-day staff procedures and	365
operations within an agency.	366

Sec. 121.24.  (A) As used in this section:

367

(1) "Agency" means any agency as defined in division (A)(2)	368
of section 111.15 or division (A) of section 119.01 of the Revised	369
Code.	370

(2) "Employee" means a person who is employed by a small	371
business or small organization for at least one thousand eight	372
hundred hours per year.	373

(3) A rule is "filed in final form" when it is filed with	374
the secretary of state, the director of the legislative service	375
commission, and the joint committee on agency rule review under	376
division (B)(1) of section 111.15, division (A)(1) of section	377
119.04, division (B)(1) of section 4141.14, or division (A) of	378
section 5703.14 of the Revised Code.	379

(4) "History trail" means the supplementary information	380
required to be provided on each copy of a proposed rule, which	381
information is not part of the text of the rule, and sets forth	382
the statute prescribing the procedure in accordance with which the	383
proposed rule is required to be adopted, the statute that	384
authorizes the agency to adopt the proposed rule, the statute that	385
the agency intends to amplify or implement by adopting the	386
proposed rule, the effective dates of any previous versions of the	387
rule that is the subject of the proposal, and other similar	388
information as prescribed in rules of the legislative service	389
commission.	390

(5) "Individual" means any individual who is affected by a	391
rule in the individual's capacity as an officer or employee of a	392
small business or small organization.	393

(6) "Rule summary and fiscal analysis" means a rule summary	394
and fiscal analysis of a proposed rule that provides the	395
information required by division (B) of section 127.18 of the	396
Revised Code, and that has been prepared in the form prescribed by	397
the joint committee on agency rule review under division (E) of	398
that section.	399

(7) "Rate" means any rate, classification, fare, toll,	400
rental, or charge of a public utility.	401

(8) "Rule" means any rule, regulation, or standard having a	402
general and uniform operation, including any appendix thereto,	403
that is adopted, promulgated, and enforced by an agency under the	404
authority of the laws governing the agency. "Rule" includes the	405
adoption of a new rule or the amendment or rescission of an	406
existing rule. "Rule" does not include any of the following:	407

(a) A rule proposed under section 1121.05, 1121.06, 1155.18,	408
or 1163.22, or 1349.33 of the Revised Code;	409

(b) A rule governing the internal management of an agency	410
that does not affect private rights;	411

(c) A rule authorized by law to be issued as a temporary	412
written order;	413

(d) Except as otherwise provided in division (A)(8)(d) of	414
this section, a rule or order, whether of a quasi-legislative or	415
quasi-judicial nature, proposed by the public utilities	416
commission. Any rule or order, whether of a quasi-legislative or	417
quasi-judicial nature, proposed by the public utilities commission	418
that determines a rate of a public utility to be just and	419
reasonable is a "rule" for purposes of this section, unless the	420
rule or order contains findings that the public utility, in	421
applying for approval of the rate under section 4909.18 of the	422
Revised Code, stated facts and grounds sufficient for the	423
commission to determine that the proposed rate was just and	424
reasonable.	425

(e) A proposed rule, the adoption of which is mandated by a	426
federal law or rule, and which must be adopted substantially as	427
prescribed by federal law or rule, to become effective within one	428
hundred twenty days of adoption, so long as the history trail of	429
the proposed rule contains a statement that it is proposed for the	430
purpose of complying with a federal law or rule and a citation to	431
the federal law or rule that mandates substantial compliance;	432

(9) "Small business" means an independently owned and	433
operated business having fewer than four hundred employees.	434

(10) "Small organization" means an unincorporated	435
association, sheltered workshop, or nonprofit enterprise having	436
fewer than four hundred employees. This definition is not limited	437
to the types of small organizations expressly mentioned, and	438
includes all other types of small organizations, so long as such	439
organizations have fewer than four hundred employees.	440

(B) If an agency intends to adopt a rule, and reasonably	441
believes that the proposed rule, if adopted, will be likely to	442
affect individuals, small businesses, or small organizations, the	443
agency shall comply with the following procedure in adopting the	444
rule, in addition to any other procedure required by section	445
111.15, 119.03, 119.032, 119.04, 127.18, 4141.14, or 5117.02 of	446
the Revised Code or any other statute of this state:	447

(1) The agency shall prepare a complete and accurate rule	448
summary and fiscal analysis of the original version of the	449
proposed rule.	450

(2) After complying with division (B)(1) of this section,	451
and at least sixty days before the agency files the proposed rule	452
in final form, the agency shall file with the office of small	453
business, in electronic form, the full text of the original	454
version of the proposed rule and the rule summary and fiscal	455
analysis of such proposed rule.	456

(3) During a period commencing on the date the original	457
version of the proposed rule is filed pursuant to division (B)(2)	458
of this section and ending forty days thereafter:	459

(a) The chairperson of the standing committee of the senate	460
or house of representatives having jurisdiction over individuals,	461
small businesses, or small organizations, or any other person	462
having an interest in the proposed rule, may submit comments in	463
electronic form to the agency, to the joint committee on agency	464
rule review, or to both, concerning the expected effect of the	465
proposed rule, if adopted, upon individuals, small businesses, and	466
small organizations. The agency and joint committee shall accept	467
all such timely submitted written comments.	468

(b) The chairperson of the standing committee of the senate	469
or house of representatives having jurisdiction over individuals,	470
small businesses, or small organizations, in electronic form, may	471
request the agency to appear before the committee and testify,	472
answer questions asked by members of the committee, and produce	473
information in the possession of the agency as requested by the	474
committee, concerning the expected effect of the proposed rule, if	475
adopted, upon individuals, small businesses, or small	476
organizations. Upon receipt of a request from the chairperson of	477
the appropriate standing committee of the senate or house of	478
representatives under division (B)(3)(b) of this section, the	479
agency shall designate an officer or employee of the agency to	480
appear before the committee, and shall otherwise comply with the	481
request, in the manner directed by the request.	482

(4) The agency shall not proceed to file the proposed rule	483
in final form until it has considered any comments timely	484
submitted to it under division (B)(3)(a) of this section, has	485
identified the issues raised by the comments, has assessed the	486
proposed rule in light of the issues raised by the comments, and	487
has made such revisions in the proposed rule as it considers	488
advisable in light of its assessment.	489

An agency is not required to put any revised version of a	490
proposed rule through the procedure of divisions (B)(1) to (4) of	491
this section.	492

(C) Any original version of a proposed rule, rule summary	493
and fiscal analysis, or written comment filed or submitted under	494
division (B) of this section shall be preserved by the agency with	495
which it is filed or to which it is submitted, and is a public	496
record open to public inspection.	497

(D) Each agency shall prepare a plan that provides for the	498
periodic review, at least once every five years, of each rule of	499
the agency that is not otherwise subject to review under section	500
119.032 of the Revised Code and that affects individuals, small	501
businesses, or small organizations. The purpose of each periodic	502
review shall be to determine whether the rule that is being	503
reviewed should be continued without change or amended or	504
rescinded, consistent with the purpose, scope, and intent of the	505
applicable statute authorizing adoption of the rule, so as to	506
minimize the economic impact of the rule upon individuals, small	507
businesses, or small organizations. Accordingly, in making each	508
periodic review of a rule, the agency shall consider the continued	509
need for the rule, the nature of any written complaints or	510
comments that the agency has received with regard to the rule, the	511
extent to which the rule duplicates, overlaps, or conflicts with	512
other currently effective rules, and the degree to which	513
technology, economic conditions, and other relevant factors have	514
changed in the area affected by the rule.	515

Each agency shall annually report to the governor and general	516
assembly, with regard to each of its rules that have been reviewed	517
under this division during the preceding calendar year, the title	518
and administrative code rule number of the rule, a brief summary	519
of the content and operation of the rule, and a brief summary of	520
the results of the review. If the agency is otherwise required to	521
make an annual report to the governor and general assembly, the	522
agency shall report this information in an appropriately	523
designated section of its annual report, whether its annual report	524
is in print or electronic form or both. If, however, the agency	525
is not otherwise required to make an annual report to the governor	526
and general assembly, the agency, on or before the first day of	527
February, shall report this information in a separate report, in	528
electonic form, to the governor and general assembly. In addition	529
to the submissions required by section 101.68 of the Revised Code,	530
and in addition to any requirement of that section to submit	531
notice of the availability of a report instead of copies of the	532
report, the agency shall submit its annual or separate report in	533
electronic form, which provides the information required by this	534
division, to the chairpersons of the standing committees of the	535
senate and house of representatives having jurisdiction over	536
individuals, small businesses, and small organizations.	537

Each agency having rules in effect on January 1, 1985, that	538
affect individuals, small businesses, or small organizations shall	539
divide those rules into groups, so that at least one-fifth of	540
those rules are reviewed during each year of a five-year period	541
commencing on January 1, 1985. A rule that is newly adopted after	542
January 1, 1985, shall be reviewed five years after its effective	543
date. When a rule has once been reviewed, it shall thereafter be	544
reviewed again at five-year intervals.	545

(E) Each agency shall designate an individual or office	546
within the agency to be responsible for complying with this	547
division. Each individual or office that has been so designated	548
shall, within ten days after receiving a request therefor from any	549
person:	550

(1) Provide the person with copies of any rule proposed by	551
the agency that would affect individuals, small businesses, or	552
small organizations;	553

(2) Provide the person with copies of the rule summary and	554
fiscal analysis of any rule proposed by the agency that would	555
affect individuals, small businesses, or small organizations; or	556

(3) Find, collate, and make available to the person any	557
information in the possession of the agency regarding a rule	558
proposed by the agency, which information would be of interest to	559
individuals, small businesses, or small organizations.	560

The agency shall inform the office of small business in	561
writing of the name, address, and telephone number of each	562
individual or office designated under this division. The agency	563
shall promptly inform the office of small business in writing of	564
any change in the information thus provided.	565

(F) Division (B) of this section does not apply to any	566
emergency rule adopted under division (B)(2) of section 111.15 or	567
division (F) of section 119.03 of the Revised Code, except that	568
the emergency rule becomes subject to such division when it is	569
adopted pursuant to the procedure of section 111.15 or 119.03 of	570
the Revised Code for the adoption of rules not of an emergency	571
nature.	572

(G) The department of taxation shall provide a copy of the	573
full text of any rule proposed by the department that may affect	574
any business in electronic form to the office of small business,	575
and the department shall designate an office within the agency	576
responsible for providing a copy of any such rule within ten days	577
of receiving a request from any person.	578

Sec. 1322.062. (A)(1) Within three business days after	579
taking an application for a loan from a buyer, a registrant shall	580
deliver to the buyer a mortgage loan origination disclosure	581
statement that contains all of the following:	582

(1)(a) The name, address, and telephone number of the buyer;

583

(2)(b) The typewritten name of the loan officer and the	584
number designated on the loan officer's license;	585

(3)(c) The street address, telephone number, and facsimile	586
number of the registrant and the number designated on the	587
registrant's certificate of registration;	588

(4)(d) The signature of the loan officer or registrant;

589

(5)(e) A statement indicating whether the buyer is to pay	590
for the services of a bona fide third party if the registrant is	591
unable to assist the buyer in obtaining a mortgage;	592

(6)(f) A statement that describes the method by which the	593
fee to be paid by the buyer to the registrant will be calculated;	594

(7)(g) A statement that the lender may pay compensation to	595
the registrant;	596

(8)(h) A description of all the services the registrant has	597
agreed to perform for the buyer;	598

(9)(i) A statement that the buyer has not entered into an	599
exclusive agreement for brokerage services.	600

(2) If the loan is a covered loan as defined in section	601
1349.25 of the Revised Code, the registrant shall also deliver a	602
copy of the mortgage loan origination disclosure statement to the	603
lender.	604

(B) If there is any change in the information provided under	605
division (A)(6)(1)(f) or (8)(h) of this section, the registrant	606
shall provide the buyer with the revised mortgage loan origination	607
disclosure statement no later than three days after the change	608
occurs, or the date the loan is closed, whichever is earlier.	609

(C) No registrant shall fail to comply with this section.

610

Sec. 1349.25. As used in sections 1349.25 to 1349.37 of the	611
Revised Code:	612

(A) "Actuarial method" means the method of allocating	613
payments made on a debt between the amount financed and the	614
finance charge pursuant to which a payment is applied first to the	615
accumulated finance charge and any remainder is subtracted from,	616
or any deficiency is added to, the unpaid balance of the amount	617
financed.	618

(B) "Consumer" means a natural person to whom credit is	619
offered or extended primarily for personal, family, or household	620
purposes.	621

(C) "Consummation" means the time that a consumer becomes	622
contractually obligated on a credit transaction.	623

(D) "Covered loan" means a consumer credit mortgage loan	624
transaction that meets both of the following criteria:	625

(1) The loan involves property located within this state.

626

(2) The loan is considered a mortgage under section 152(a)	627
of the "Home Ownership and Equity Protection Act of 1994," 108	628
Stat. 2190, 15 U.S.C.A. 1602(aa), as amended, and the regulations	629
adopted thereunder by the federal reserve board, as amended.	630

(E) "Credit" means the right granted by a creditor to a	631
debtor to defer payment of debt or to incur debt and defer its	632
payment.	633

(F) "Creditor" has the same meaning as in section 152(c) of	634
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.	635
2190, 15 U.S.C.A. 1602(f), as amended, and the regulations adopted	636
thereunder by the federal reserve board, as amended.	637

(G) "Person" means a natural person, partnership,	638
association, trust, corporation, or any other legal entity.	639

Sec. 1349.26. (A) A creditor shall provide, for each covered	640
loan, both of the following disclosures. The disclosures shall be	641
in conspicuous type size and be in substantially the following	642
form:	643

(1) "You are not required to complete this agreement merely	644
because you have received these disclosures or have signed a loan	645
application."	646

(2) "If you obtain this loan, the lender will have a	647
mortgage on your home. You could lose your home, and any money	648
you have put into it, if you do not meet your obligations under	649
the loan."	650

(B) In addition to the disclosures required under division	651
(A) of this section, a creditor shall disclose, for each covered	652
loan, either of the following:	653

(1) In the case of a credit transaction with a fixed rate	654
of interest, the annual percentage rate, the amount of the regular	655
monthly payment, and the amount of any balloon payment;	656

(2) In the case of any other credit transaction, the annual	657
percentage rate of the loan, the amount of the regular monthly	658
payment, a statement that the interest rate and monthly payment	659
may increase, and the amount of the maximum monthly payment, based	660
on the maximum interest rate allowed pursuant to 12 U.S.C.A. 3806.	661

(C) With respect to any mortgage that is refinanced on or	662
after October 1, 2002, the creditor shall also disclose the total	663
amount the consumer will borrow, as reflected by the face amount	664
of the note. If the amount borrowed includes premiums or other	665
charges for optional credit insurance or debt-cancellation	666
coverage, that fact shall be stated, grouped together with the	667
disclosure of the amount borrowed. The disclosure of the amount	668
borrowed shall be treated as accurate if it is not more than one	669
hundred dollars above or below the amount required to be	670
disclosed.	671

(D)(1) Subject to division (D)(2) of this section, each	672
creditor shall provide the disclosures required under this	673
section not less than three business days prior to consummation of	674
the transaction. After providing those disclosures, a creditor	675
shall not change the terms of the extension of credit if such	676
changes make the disclosures inaccurate, unless new disclosures	677
are provided in accordance with this section. A creditor may	678
provide such new disclosures by telephone, if both of the	679
following requirements are met:	680

(a) The change is initiated by the consumer.

681

(b) At the consummation of the loan transaction, the	682
creditor provides to the consumer the new disclosures in writing	683
and the creditor and consumer certify in writing that, not later	684
than three days prior to the date of consummation of the	685
transaction, the new disclosures were provided by telephone.	686

(2) A consumer may, after receiving the disclosures	687
required under this section, modify or waive the three-day waiting	688
period between delivery of those disclosures and consummation of	689
the loan transaction, if the consumer determines that the	690
extension of credit is needed to meet a bona fide personal	691
financial emergency. To modify or waive the right, the consumer	692
shall give the creditor a dated written statement that describes	693
the emergency, specifically modifies or waives the waiting period,	694
and bears the signature of all of the consumers entitled to the	695
waiting period.	696

(E) Compliance with sections 226.31(c)(1) and 226.32(c) of	697
Title 12 of the Code of Federal Regulations, as amended, shall be	698
deemed compliance with this section.	699

Sec. 1349.27. A creditor shall not do any of the following:

700

(A) Make a covered loan that includes any of the following:

701

(1) Terms under which a consumer must pay a prepayment	702
penalty for paying all or part of the principal before the date on	703
which the principal is due. For purposes of division (A)(1) of	704
this section, any method of computing a refund of unearned	705
scheduled interest is a prepayment penalty if it is less favorable	706
to the consumer than the actuarial method.	707

Division (A)(1) of this section does not apply to a	708
prepayment penalty imposed in accordance with section 129(c)(2) of	709
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.	710
2190, 15 U.S.C.A. 1639(c)(2), as amended, and the regulations	711
adopted thereunder by the federal reserve board, as amended.	712

(2) Terms under which the outstanding principal balance will	713
increase at any time over the course of the loan because the	714
regular periodic payments do not cover the full amount of interest	715
due;	716

(3) Terms under which more than two periodic payments	717
required under the loan are consolidated and paid in advance from	718
the loan proceeds provided to the consumer;	719

(4) Terms under which a rebate of interest arising from a	720
loan acceleration due to default is calculated by a method less	721
favorable than the actuarial method.	722

(B) Make a covered loan that provides for an interest rate	723
applicable after default that is higher than the interest rate	724
that applies before default;	725

(C) Make a covered loan having a term of less than five	726
years that includes terms under which the aggregate amount of the	727
regular periodic payments would not fully amortize the outstanding	728
principal balance. This division does not apply to any covered	729
loan with a maturity of less than one year, if the purpose of the	730
loan is a "bridge" loan connected with the acquisition or	731
construction of a dwelling intended to become the consumer's	732
principal dwelling.	733

(D) Engage in a pattern or practice of extending credit to	734
consumers under covered loans based on the consumers' collateral	735
without regard to the consumers' repayment ability, including the	736
consumers' current and expected income, current obligations, and	737
employment;	738

(E) Make a payment to a contractor under a home improvement	739
contract from amounts extended as credit under a covered loan,	740
except in either of the following ways:	741

(1) By an instrument that is payable to the consumer or	742
jointly to the consumer and the contractor;	743

(2) At the election of the consumer, by a third party escrow	744
agent in accordance with terms established in a written agreement	745
signed by the consumer, the creditor, and the contractor before	746
the date of payment.	747

(F) On or after October 1, 2002, make a covered loan that	748
includes a demand feature that permits the creditor to terminate	749
the loan in advance of the original maturity date and to demand	750
repayment of the entire outstanding balance, except in any of the	751
following circumstances:	752

(1) There is fraud or material misrepresentation by the	753
consumer in connection with the loan.	754

(2) The consumer fails to meet the repayment terms of the	755
agreement for any outstanding balance.	756

(3) There is any action or inaction by the consumer that	757
adversely affects the creditor's security for the loan or any	758
right of the creditor in that security.	759

(G)(1) Within one year after having made a covered loan,	760
refinance a covered loan to the same borrower into another covered	761
loan, unless the refinancing is in the consumer's interest. An	762
assignee holding or servicing a covered loan shall not, for the	763
remainder of the one-year period following the date of origination	764
of the covered loan, refinance any covered loan to the same	765
consumer into another covered loan, unless the refinancing is in	766
the consumer's interest.	767

A creditor or assignee shall not engage in acts or practices	768
to evade division (G)(1) of this section, including a pattern or	769
practice of arranging for the refinancing of its own loans by	770
affiliated or unaffiliated creditors, or modifying a loan	771
agreement, whether or not the existing loan is satisfied and	772
replaced by the new loan, and charging a fee.	773

(2) Division (G)(1) of this section shall apply on and after	774
October 1, 2002.	775

(H) Make a covered loan without first obtaining a copy of the	776
mortgage loan origination disclosure statement that was delivered	777
to the buyer in accordance with division (A)(1) of section	778
1322.062 of the Revised Code;	779

(I) Finance, directly or indirectly, into a covered loan or	780
finance to the same borrower within thirty days of a covered loan	781
any credit life or credit disability insurance premiums sold in	782
connection with the covered loan, provided that any credit life or	783
credit disability insurance premiums calculated and paid on a	784
monthly or other periodic basis shall not be considered financed	785
by the person originating the loan. For purposes of this	786
division, credit life or credit disability insurance does not	787
include a contract issued by a government agency or private	788
mortgage insurance company to insure the lender against loss	789
caused by a mortgagor's default.	790

(J) Replace or consolidate a zero interest rate or other	791
low-rate loan made by a governmental or nonprofit lender with a	792
covered loan within the first ten years of the low-rate loan	793
unless the current holder of the loan consents in writing to the	794
refinancing. For purposes of this division, a "low-rate loan"	795
means a loan that carries a current interest rate two percentage	796
points or more below the current yield on United States treasury	797
securities with a comparable maturity. If the loan's current	798
interest rate is either a discounted introductory rate or a rate	799
that automatically steps up over time, the fully indexed rate or	800
the fully stepped-up rate, as applicable, shall be used, in lieu	801
of the current rate, to determine whether a loan is a low-rate	802
loan.	803

Sec. 1349.29. If a covered loan transaction includes any term	804
prohibited by section 1349.27 of the Revised Code, the consumer	805
shall have the right to rescind the transaction in accordance with	806
section 129(j) of the "Home Ownership and Equity Protection Act of	807
1994," 108 Stat. 2190, 15 U.S.C.A. 1639(j), as amended, and the	808
regulations adopted thereunder by the federal reserve board, as	809
amended.	810

Sec. 1349.30. (A) A person has no liability under section	811
1349.31 of the Revised Code, and shall not be subject to any	812
sanction by the superintendent of financial institutions, for any	813
failure to comply with section 1349.26 or 1349.27 of the Revised	814
Code, if within sixty days after discovering the error, whether	815
pursuant to the person's own procedures or an examination or	816
investigation by the superintendent under division (A) or (B) of	817
section 1349.34 of the Revised Code, and prior to the initiation	818
of any action by the superintendent under divisions (C) to (F) of	819
section 1349.34 of the Revised Code or the receipt of written	820
notice of the error from the consumer, the person notifies the	821
consumer or other person concerned of the error and makes whatever	822
adjustments in the appropriate account are necessary to assure	823
that the consumer will not be required to pay an amount in excess	824
of the charge actually disclosed, or the dollar equivalent of the	825
annual percentage rate actually disclosed, whichever is lower.	826

(B) A creditor or assignee shall not be held liable in any	827
action brought under section 1349.29 of the Revised Code, if the	828
creditor or assignee shows by a preponderance of evidence that the	829
compliance failure was not intentional and resulted from a bona	830
fide error notwithstanding the maintenance of procedures	831
reasonably adapted to avoid any such error. For purposes of this	832
division, "bona fide error" includes, but is not limited to,	833
clerical, calculation, computer malfunction and programming, and	834
printing errors. "Bona fide error" does not include an error of	835
legal judgment with respect to a person's obligations under	836
sections 1349.25 to 1349.36 of the Revised Code.	837

Sec. 1349.31.  (A)(1) No creditor shall willfully and	838
knowingly fail to comply with section 1349.26 or 1349.27 of the	839
Revised Code. For purposes of division (A)(1) of this section,	840
"willfully and knowingly" has the same meaning as in section 112	841
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.	842
1611, as amended.	843

(2) Whoever violates division (A)(1) of this section is	844
guilty of a felony of the fifth degree.	845

(B) The superintendent of financial institutions may	846
initiate criminal proceedings under this section by presenting any	847
evidence of criminal violations to the prosecuting attorney of the	848
county in which the offense may be prosecuted. If the prosecuting	849
attorney does not prosecute the violations, or at the request of	850
the prosecuting attorney, the superintendent shall present any	851
evidence of criminal violations to the attorney general, who may	852
proceed in the prosecution with all the rights, privileges, and	853
powers conferred by law on prosecuting attorneys, including the	854
power to appear before grand juries and to interrogate witnesses	855
before such grand juries. These powers of the attorney general	856
shall be in addition to any other applicable powers of the	857
attorney general.	858

Sec. 1349.32. The purpose of sections 1349.25 to 1349.36 of	859
the Revised Code is to bring Ohio law into conformance with the	860
"Home Ownership and Equity Protection Act of 1994," 108 Stat.	861
2190, 15 U.S.C.A. 1601 note, as amended, and the regulations and	862
interpretations adopted thereunder by the federal reserve board,	863
in order to facilitate the uniform administration and enforcement	864
of state and federal laws on the regulation of certain high cost	865
mortgages.	866

In furtherance of that purpose, the regulations and	867
interpretations adopted by the federal reserve board to implement	868
the "Home Ownership and Equity Protection Act of 1994," which	869
regulations and interpretations are effective as of the effective	870
date of this section, are hereby deemed applicable to sections	871
1349.25 to 1349.36 of the Revised Code. Such regulations and	872
interpretations include the amendment of sections 226.32 and	873
226.34 of Title 12 of the Code of Federal Regulations, which	874
amendment was approved by the federal reserve board on December	875
12, 2001, and takes effect October 1, 2002.	876

Sec. 1349.33. (A) Notwithstanding any provision of sections	877
1349.25 to 1349.36 of the Revised Code, or any rule adopted	878
thereunder, if the "Home Ownership and Equity Protection Act of	879
1994," 108 Stat. 2190, 15 U.S.C.A. 1601 note, as amended, or any	880
regulation adopted thereunder by the federal reserve board, as	881
amended, is amended or otherwise modified after the effective date	882
of this section, the superintendent of financial institutions may	883
by rule adopt similar provisions. If an amendment or other	884
modification to the "Home Ownership and Equity Protection Act of	885
1994" requires the adoption of implementing regulations by the	886
federal reserve board, the superintendent shall not adopt any rule	887
under the authority of this section until those regulations are	888
adopted.	889

(B) The superintendent shall adopt the rules authorized by	890
division (A) of this section in accordance with section 111.15 of	891
the Revised Code. Chapter 119. of the Revised Code does not apply	892
to rules adopted under the authority of this section.	893

(C) A rule adopted by the superintendent under the authority	894
of this section is effective on the later of the following dates:	895

(1) The date the superintendent issues the rule;

896

(2) The date the regulation, rule, interpretation,	897
procedure, or guideline the superintendent's rule is based on	898
becomes effective.	899

(D) The superintendent may, upon thirty days' written	900
notice, revoke any rule adopted under the authority of this	901
section. A rule adopted under the authority of this section, and	902
not revoked by the superintendent, lapses and has no further force	903
and effect thirty months after its effective date.	904

Sec. 1349.34. (A) As often as the superintendent of	905
financial institutions considers it necessary, the superintendent	906
may examine a person's records regarding covered loans. The	907
superintendent may recover from the person any costs incurred in	908
connection with and reasonably related to the examination.	909

(B) The superintendent may investigate alleged failures to	910
comply with sections 1349.25 to 1349.36 of the Revised Code, or	911
any rule adopted thereunder, or complaints concerning any such	912
failure to comply. In conducting any investigation under this	913
section, the superintendent may compel, by subpoena, witnesses to	914
testify in relation to any matter over which the superintendent	915
has jurisdiction and may require the production of any book,	916
record, or other document pertaining to that matter. If a person	917
fails to file any statement or report, obey any subpoena, give	918
testimony, produce any book, record, or other document as required	919
by a subpoena, or permit photocopying of any book, record, or	920
other document subpoenaed, the court of common pleas of any county	921
in this state, upon application made to it by the superintendent,	922
shall compel obedience by attachment proceedings for contempt, as	923
in the case of disobedience of the requirements of a subpoena	924
issued from the court or a refusal to testify therein.	925

(C) Whenever it appears to the superintendent that a person	926
has engaged in, is engaging in, or is about to engage in, any	927
activity constituting a failure to comply with section 1349.26 or	928
1349.27 of the Revised Code, the superintendent may make	929
application to the court of common pleas of any county in this	930
state for an order enjoining any such activity. Upon a showing by	931
the superintendent that a person has engaged in, is engaging in,	932
or is about to engage in, any activity constituting a failure to	933
comply with section 1349.26 or 1349.27 of the Revised Code, the	934
court shall grant an injunction, restraining order, or other	935
appropriate relief.	936

(D) Whenever it appears to the superintendent that a person	937
has engaged in, is engaging in, or is about to engage in, any	938
activity that may constitute a failure to comply with section	939
1349.26 or 1349.27 of the Revised Code, the superintendent, after	940
notice and a hearing conducted in accordance with Chapter 119. of	941
the Revised Code, may issue a cease and desist order. Such an	942
order shall be enforceable in any court of common pleas in this	943
state.	944

(E) If a person that fails to comply with section 1349.26 or	945
1349.27 of the Revised Code is licensed, registered, or charted	946
by, or otherwise operates under the authority of, the	947
superintendent, the superintendent may, in accordance with Chapter	948
119. of the Revised Code, suspend, revoke, or deny the renewal of	949
such license, registration, charter, or other authority.	950

(F) If a person fails to comply with section 1349.26 or	951
1349.27 of the Revised Code, the superintendent may, in accordance	952
with Chapter 119. of the Revised Code, impose a fine of not more	953
than two thousand five hundred dollars per compliance failure. If	954
the person fails to comply two or more times, the superintendent	955
may, in accordance with Chapter 119. of the Revised Code, impose a	956
fine of not more than five thousand dollars per compliance	957
failure. If the person injured by the failure to comply is	958
sixty-five years of age or older, the superintendent may double	959
the amount of the fine.	960

An order to pay a fine pursuant to this division shall be	961
enforceable in any court of common pleas in this state. All fines	962
collected under this division shall be paid to the superintendent	963
and shall be deposited by the superintendent into the state	964
treasury to the credit of the consumer finance fund created under	965
section 1321.21 of the Revised Code.	966

In determining the amount of a fine to be imposed under this	967
division, the superintendent shall consider all of the following:	968

(1) The seriousness of the conduct;

969

(2) The person's good faith efforts to prevent the conduct;

970

(3) The person's history regarding violations and compliance	971
with the superintendent's orders;	972

(4) The person's financial resources;

973

(5) Any other matter the superintendent considers	974
appropriate in enforcing sections 1349.26 and 1349.27 of the	975
Revised Code.	976

The superintendent shall not impose a fine under this	977
division if the superintendent has imposed or will impose a fine	978
under another provision of the Revised Code for the same conduct.	979

(G)(1) The superintendent may take any of the actions set	980
forth in this section with respect to any person other than a	981
federally chartered financial institution or its operating	982
subsidiaries. Whenever it appears to the superintendent that a	983
federally chartered financial institution or its operating	984
subsidiary has engaged in, is engaging in, or is about to engage	985
in, any activity that may constitute a failure to comply with	986
section 1349.26 or 1349.27 of the Revised Code, the superintendent	987
may present any evidence of such activity to the institution's	988
appropriate federal regulatory authority, along with any	989
recommendations regarding the imposition of specific sanctions.	990

(2) Any action taken by the superintendent under this section	991
shall be commenced within three years after the alleged compliance	992
failure.	993

(H) The remedies available to the superintendent under this	994
section are cumulative and concurrent, and the exercise of one	995
remedy by the superintendent does not preclude or require the	996
exercise of any other remedy.	997

(I) The remedies available to the superintendent under this	998
section or to the appropriate federal regulatory authority, the	999
right of rescission described in section 1349.29 of the Revised	1000
Code, and the criminal penalty provided in section 1349.31 of the	1001
Revised Code shall constitute the sole and exclusive remedies for	1002
any failure to comply with section 1349.26 or 1349.27 of the	1003
Revised Code.	1004

Sec. 1349.35. The superintendent of financial institutions	1005
shall include, as part of the annual report required by section	1006
1181.09 of the Revised Code, the number of complaints received,	1007
the number of enforcement actions taken, and any other relevant	1008
data regarding covered loans.	1009

Sec. 1349.36. The superintendent of financial institutions	1010
may, in accordance with Chapter 119. of the Revised Code, adopt	1011
reasonable rules to administer and enforce sections 1349.25 to	1012
1349.35 of the Revised Code and to carry out the purpose of those	1013
sections as stated in section 1349.32 of the Revised Code.	1014

Sec. 1349.37.  There is hereby created in the division of	1015
financial institutions the office of consumer affairs. The	1016
responsibilities of the office shall, at a minimum, include all of	1017
the following:	1018

(A) Providing education to residents of this state	1019
regarding borrowing and related financial topics;	1020

(B) Providing referrals to credit counseling services;

1021

(C) Receiving complaints regarding alleged failures to	1022
comply with section 1349.26 or 1349.27 of the Revised Code;	1023

(D) Contacting the persons that are the subject of such	1024
complaints, on behalf of the consumers;	1025

(E) Referring matters to the superintendent of financial	1026
institutions for action under section 1349.34 of the Revised Code.	1027

Section 2. That existing sections 111.15, 119.01, 121.24, and	1028
1322.062 of the Revised Code are hereby repealed.	1029

Section 3. (A) The provisions of the Revised Code, including,	1030
but not limited to, Titles XI, XIII, XVII, and XLVII, relating to	1031
the origination, granting, servicing, and collection of loans and	1032
other forms of credit prescribe rules of conduct upon citizens	1033
generally, comprise a comprehensive regulatory framework intended	1034
to operate uniformly throughout the state under the same	1035
circumstances and conditions, and constitute general laws within	1036
the meaning of Section 3 of Article XVIII of the Ohio	1037
Constitution.	1038

(B) The provisions of the Revised Code, including, but not	1039
limited to, Titles XI, XIII, XVII, and XLVII, relating to the	1040
origination, granting, servicing, and collection of loans and	1041
other forms of credit have been enacted in furtherance of the	1042
police powers of the state.	1043

(C) Silence in the Revised Code, including, but not limited	1044
to, Titles XI, XIII, XVII, and XLVII, with respect to any act or	1045
practice in the origination, granting, servicing, or collection of	1046
loans or other forms of credit shall not be interpreted to mean	1047
that the state has not completely occupied the field or has only	1048
set minimum standards in its regulation of lending and other	1049
credit activities.	1050

(D) It is the intent of the General Assembly to entirely	1051
preempt municipal corporations and other political subdivisions	1052
from the regulation and licensing of lending and other credit	1053
activities.	1054

Section 4. (A) The enactment of section 1.63 of the Revised	1055
Code by this act is intended as a clarification of existing law	1056
and not as a substantive change in the law.	1057

(B) The enactment of section 1.63 of the Revised Code by this	1058
act expresses the legislative intent of the General Assembly	1059
currently and at the time of the original enactment of the	1060
provisions of the Revised Code, including, but not limited to,	1061
Titles XI, XIII, XVII, and XLVII, relating to the origination,	1062
granting, servicing, and collection of loans and other forms of	1063
credit.	1064

Section 5. (A) There is hereby created the Predatory Lending	1065
Study Committee, which shall conduct a thorough investigation of	1066
the impact of predatory lending practices on the citizens and	1067
communities of Ohio. These predatory lending practices include,	1068
but are not limited to, loan flipping, balloon payments,	1069
origination fees, prepayment penalties, single premium credit	1070
insurance, packing unnecessary insurance coverages, lending	1071
without due regard to ability to pay, lending without due regard	1072
to tangible benefits to consumers, payments to home improvement	1073
contractors, foreclosure rates, appropriateness of subprime loans	1074
for customer populations, collusion among occupations related to	1075
real estate loans, and equity stripping. As part of its	1076
investigation, the Study Committee shall identify and evaluate	1077
current state and federal laws, rules, and regulations that	1078
address fraud, misrepresentation, and other deceptive practices in	1079
mortgage lending or origination. The Study Committee shall	1080
evaluate the effectiveness of Am. Sub. S.B. 76 of the 124th	1081
General Assembly in deterring these practices and shall make	1082
recommendations it determines necessary to achieve that	1083
deterrence. The Study Committee shall also review the operation	1084
of the Office of Consumer Affairs within the Division of Financial	1085
Institutions, including its outreach efforts to provide education	1086
regarding predatory lending, borrowing, and related financial	1087
topics and, based on the effectiveness of its operation, make	1088
recommendations regarding its continued funding.	1089

(B) The Study Committee shall consist of fifteen members as	1090
follows:	1091

(1) Three members of the Senate appointed by the President	1092
of the Senate, two of whom are members of the majority party, and	1093
one of whom is a member of the minority party;	1094

(2) Three members of the House of Representatives appointed	1095
by the Speaker of the House of Representatives, two of whom are	1096
members of the majority party, and one of whom is a member of the	1097
minority party;	1098

(3) The Director of the Department of Commerce or the	1099
Director's designee;	1100

(4) The Attorney General or the Attorney General's designee;

1101

(5) The Director of Aging or the Director's designee;

1102

(6) Three members representing consumer advocacy	1103
organizations, as follows:	1104

(a) One representative from the Coalition on Homelessness	1105
and Housing in Ohio, appointed by the President of the Senate;	1106

(b) One representative from the Ohio chapter of AARP,	1107
appointed by the Speaker of the House of Representatives;	1108

(c)  One representative from a nonprofit housing	1109
organization, appointed by the President of the Senate.	1110

(7) Three members representing the lending community, two of	1111
whom shall be appointed by the Speaker of the House of	1112
Representatives, and one of whom shall be appointed by the	1113
President of the Senate.	1114

(C)(1) The Speaker of the House of Representatives shall	1115
designate one of the members of the Study Committee to serve as	1116
chairperson of the Study Committee.	1117

(2) Members of the Study Committee shall serve without	1118
compensation or reimbursement.	1119

(3) Vacancies on the Study Committee shall be filled in the	1120
same manner as the original appointment.	1121

(D) The Department of Commerce shall provide necessary	1122
staff, facilities, supplies, and services to the Study Committee.	1123

(E) The Study Committee shall meet initially within sixty	1124
days after the appointments to the Study Committee at the call of	1125
the chairperson and shall meet at least every ninety days	1126
thereafter at the call of the chairperson until the Study	1127
Committee submits the report described in division (F) of this	1128
section. The chairperson shall consider holding some regional	1129
public hearings to ensure that perspectives from throughout the	1130
state are presented to the Study Committee.	1131

(F) The Study Committee shall publish its findings in a	1132
report and submit the report to the Governor, the Speaker and the	1133
Minority Leader of the House of Representatives, and the President	1134
and Minority Leader of the Senate not later than June 30, 2003.	1135
Included in the report shall be recommendations on legislation	1136
related to predatory lending to be enacted by the General	1137
Assembly. Upon submission of the report, the Study Committee	1138
shall cease to exist.	1139

Section 6. That Section 32 of Am. Sub. H.B. 94 of the 124th	1140
General Assembly be amended to read as follows:	1141

"       Sec. 32.  COM DEPARTMENT OF COMMERCE

1142

General Revenue Fund

1143

General Services Fund Group

1147

Federal Special Revenue Fund Group

1152

State Special Revenue Fund Group

1158

Liquor Control Fund Group

1184

GRANTS-VOLUNTEER FIRE DEPARTMENTS

1193

The foregoing appropriation item 800-402, Grants-Volunteer	1194
Fire Departments, shall be used to make annual grants to volunteer	1195
fire departments of up to $10,000, or up to $25,000 if the	1196
volunteer fire department provides service for an area affected by	1197
a natural disaster. The grant program shall be administered by	1198
the Fire Marshal under the Department of Commerce. The Fire	1199
Marshal shall adopt rules necessary for the administration and	1200
operation of the grant program.	1201

Notwithstanding section 3737.17 of the Revised Code, upon the	1202
request of the Director of Commerce, the Director of Budget and	1203
Management shall transfer $200,000 cash in fiscal year 2002 and	1204
$100,000 cash in fiscal year 2003 from the State Fire Marshal Fund	1205
(Fund 546) to the General Revenue Fund.	1206

Of the foregoing appropriation item 800-402, Grants-Volunteer	1207
Fire Departments, $200,000 in fiscal year 2002 shall be granted to	1208
the Monday Creek Fire Department.	1209

LABOR AND WORKER SAFETY

1210

The Department of Commerce may designate a portion of	1211
appropriation item 800-410, Labor and Worker Safety, to be used to	1212
match federal funding for the OSHA on-site consultation program.	1213

SMALL GOVERNMENT FIRE DEPARTMENTS

1214

Upon the request of the Director of Commerce, the Director of	1215
Budget and Management shall transfer $250,000 cash in each fiscal	1216
year from the State Fire Marshal Fund (Fund 546) within the State	1217
Special Revenue Fund Group to the Small Government Fire	1218
Departments Fund (Fund 5F1) within the General Services Fund	1219
Group.	1220

Notwithstanding section 3737.17 of the Revised Code, the	1221
foregoing appropriation item 800-635, Small Government Fire	1222
Departments, may be used to provide loans to private fire	1223
departments.	1224

PENALTY ENFORCEMENT

1225

The foregoing appropriation item 800-621, Penalty	1226
Enforcement, shall be used to enforce sections 4115.03 to 4115.16	1227
of the Revised Code.	1228

On July 1, 2001, or as soon thereafter as possible, the	1229
Director of Budget and Management shall transfer the cash balance	1230
in the Penalty Enforcement Fund that was in the custody of the	1231
state treasury to the Penalty Enforcement Fund (Fund 5K7) that is	1232
created in the state treasury by section 4115.10 of the Revised	1233
Code. The fund shall be used for deposit of moneys received from	1234
penalties paid under section 4115.10 of the Revised Code.	1235

UNCLAIMED FUNDS PAYMENTS

1236

The foregoing appropriation item 800-625, Unclaimed	1237
Funds-Claims, shall be used to pay claims pursuant to section	1238
169.08 of the Revised Code. If it is determined that additional	1239
amounts are necessary, the amounts are appropriated.	1240

PREDATORY LENDING ENFORCEMENT

1241

Of the foregoing appropriation item 800-607, Consumer	1242
Finance, up to $125,000 in fiscal year 2002 and up to $250,000 in	1243
fiscal year 2003 shall be used for the enforcement of sections	1244
1349.25 to 1349.36 of the Revised Code.	1245

OFFICE OF CONSUMER AFFAIRS

1246

Of the foregoing appropriation item 800-607, Consumer	1247
Finance, up to $400,000 in fiscal year 2002 and up to $400,000 in	1248
fiscal year 2003 shall be used by the Department of Commerce for	1249
the operation of the Office of Consumer Affairs created in section	1250
1349.37 of the Revised Code, including outreach efforts to provide	1251
education regarding predatory lending, borrowing, and related	1252
financial topics through seminars, local government grants, public	1253
service announcements, and brochures. On or before August 1,	1254
2002, the Director of Budget and Management shall determine and	1255
certify to the Director of Commerce the total amount of	1256
unexpended, unobligated appropriations made to the Department for	1257
fiscal year 2002 for the purposes stated above. The amount so	1258
determined and certified by the Director of Budget and Management	1259
is hereby appropriated to appropriation item 800-607, Consumer	1260
Finance, in addition to any other amounts appropriated for fiscal	1261
year 2003, and is hereby earmarked for the purposes stated above.	1262

INCREASED APPROPRIATION AUTHORITY - MERCHANDISING

1263

The Director of Commerce may, upon concurrence by the	1264
Director of Budget and Management, submit to the Controlling Board	1265
for approval a request for increased appropriation authority for	1266
appropriation item 800-601, Merchandising.	1267

CASH BALANCE TRANSFER

1268

On July 1, 2001, or as soon thereafter as possible, the	1269
Director of Budget and Management shall transfer the cash balance	1270
in the Salvage and Exchange Fund (Fund 861) to the Liquor Control	1271
Fund (Fund 043) created in section 4301.12 of the Revised Code.	1272
Upon the completion of the transfer, the Salvage and Exchange	1273
Fund, which was created by the Controlling Board during the	1274
1973-1975 biennium, is abolished. The director shall cancel any	1275
existing encumbrances against appropriation item 800-634, Salvage	1276
and Exchange, and reestablish them against appropriation item	1277
800-627, Liquor Control Operating.	1278

DEVELOPMENT ASSISTANCE DEBT SERVICE

1279

The foregoing appropriation item 800-633, Development	1280
Assistance Debt Service, shall be used to meet all payments at the	1281
times they are required to be made during the period from July 1,	1282
2001, to June 30, 2003, for bond service charges on obligations	1283
issued under section 166.08 of the Revised Code, but limited to	1284
the aggregate amount of $32,275,900. If it is determined that	1285
additional appropriations are necessary for this purpose, such	1286
amounts are hereby appropriated, provided that the appropriation	1287
does not exceed $25,000,000 in any fiscal year, except as may be	1288
needed for payments on obligations issued to meet guarantees. The	1289
General Assembly acknowledges that an appropriation for this	1290
purpose is not required, but is made in this form and in this act	1291
for record purposes only.	1292

REVITALIZATION DEBT SERVICE

1293

The foregoing appropriation item 800-636, Revitalization Debt	1294
Service, shall be used to pay debt service and related financing	1295
costs during the period from July 1, 2001, to June 30, 2003, on	1296
obligations to be issued for revitalization purposes under Section	1297
2o of Article VIII, Ohio Constitution, and implementing	1298
legislation. If it is determined that additional appropriations	1299
are necessary for this purpose, such amounts are hereby	1300
appropriated. The General Assembly acknowledges: (A) the priority	1301
of the pledge of a portion of receipts from that source to	1302
obligations issued and to be issued and guarantees made and to be	1303
made under Chapter 166. of the Revised Code; and (B) that this	1304
appropriation is subject to further consideration pursuant to	1305
implementing legislation.	1306

ADMINISTRATIVE ASSESSMENTS

1307

Notwithstanding any other provision of law to the contrary,	1308
Fund 163, Administration, shall receive assessments from all	1309
operating funds of the department in accordance with procedures	1310
prescribed by the Director of Commerce and approved by the	1311
Director of Budget and Management."	1312

Section 7. That existing Section 32 of Am. Sub. H.B. 94 of	1313
the 124th General Assembly is hereby repealed.	1314

Section 8.  Section 121.24 of the Revised Code is presented	1315
in this act as a composite of the section as amended by both Am.	1316
Sub. H.B. 283 and Am. Sub. S.B. 11 of the 123rd General Assembly.	1317
The General Assembly, applying the principle stated in division	1318
(B) of section 1.52 of the Revised Code that amendments are to be	1319
harmonized if reasonably capable of simultaneous operation, finds	1320
that the composite is the resulting version of the section in	1321
effect prior to the effective date of the section as presented in	1322
this act.	1323

Section 9.  The amendment to Section 32 of Am. Sub. H.B. 94	1324
of the 124th General Assembly constitutes an item of law that is	1325
not subject to the referendum. Therefore, under Ohio Constitution,	1326
Article II, Section 1d and section 1.471 of the Revised Code, the	1327
amendment to Section 32 of Am. Sub. H.B. 94 of the 124th General	1328
Assembly goes into immediate effect when this act becomes law.	1329