SENATOR Carnes

To amend sections 122.15, 149.07, 166.03, 183.02,

1

317.33, 1309.528, 2701.20, 3313.37, 3313.375,

2

3318.31, 3353.07, 3353.11, 3770.02, 3770.03,

3

3770.06, 5111.34, 5111.872, 5123.043, 5123.046,

4

5123.048, 5123.049, 5123.0411, 5126.01, 5126.02,

5

5126.021, 5126.033, 5126.035, 5126.036, 5126.042,

6

5126.046, 5126.05, 5126.054, 5126.055, 5126.06,

7

5126.14, 5126.15, 5126.17, 5126.18, 5126.19,

8

5126.221, 5126.357, 5705.44, 5709.12, 5709.121,

9

5709.17, 5709.40, 5709.411, 5709.43, 5709.73,

10

5709.74, 5709.75, 5709.77, 5709.78, 5709.79,

11

5709.80, 5709.81, 5733.06, 5733.0610, 5733.11,

12

5733.98, 5739.01, 5741.01, 5747.058, 5747.13, and

13

5747.98; to amend, for the purpose of adopting a

14

new section number as indicated in parentheses,

15

section 5126.056 (5126.057); to enact new section

16

5126.056 and sections 122.171, 122.60, 122.601,

17

122.602, 122.603, 122.604, 122.605, and 307.6910 of

18

the Revised Code and to amend Section 3 of Am.

19

Sub. H.B. 440 of the 121st General Assembly, as

20

subsequently amended, to amend Section 5.02 of Sub.

21

H.B. 73 of the 124th General Assembly, to amend

22

Section 41 of Am. Sub. H.B. 94 of the 124th General

23

Assembly, as subsequently amended, to amend

24

Sections 41.15, 45, 63.25, 74.01, 74.02, 94.11, 98,

25

104, and 140 of Am. Sub. H.B. 94 of the 124th

26

General Assembly, to amend Sections 41.10 and 63.09

27

of Am. Sub. H.B. 94 of the 124th General Assembly,

28

as subsequently amended, to amend Section 10 of Am.

29

Sub. S.B. 192 of the 123rd General Assembly, and to

30

amend Section 9 of Am. Sub. S.B. 192 of the 123rd

31

General Assembly, as subsequently amended, to

32

revise provisions of Am. Sub. H.B. 94 of the 124th

33

General Assembly regarding services for persons

34

with mental retardation or other developmental

35

disabilities, to revise the law governing

36

membership of county boards of mental retardation

37

and developmental disabilities, to exempt sales of

38

clothing and shoes from the sales tax for a

39

two-day period, to grant property tax exemptions

40

for Edison program grantees, to modify Local

41

Government Fund and Tobacco Master Settlement

42

Agreement Fund distributions, to expand the uses of

43

the Corporate and Uniform Commercial Code Filing

44

Fund, to revise provisions of the TANF Housing

45

Program within the Department of Development, to

46

authorize transfers from the Budget Stabilization

47

Fund to the General Revenue Fund, to establish the

48

Capital Access Program in the Department of

49

Development, to create a nonrefundable credit

50

against the corporate franchise and personal income

51

taxes for job retention, to exempt temporarily

52

certain new high-technology companies from the net

53

worth calculation of the corporate franchise tax,

54

to establish the Rural Development Initiative Fund

55

in the state treasury, and to permit the

56

disbursement of grants from that fund in

57

conjunction with loans from the Rural Industrial

58

Park Loan Program, to extend the sunset of the

59

Rural Industrial Park Loan Program to July 1, 2007,

60

to permit political subdivisions in economically

61

distressed areas to employ tax increment financing

62

throughout a designated incentive district, to

63

revise the criteria for the award and use of

64

certain TANF Funds for Appalachia, to permit a

65

county to enter into an agreement with a political

66

subdivision authorizing the county to receive

67

payments of certain revenue in the county treasury

68

that are due a political subdivision as a credit

69

against amounts otherwise owed to the county, to

70

require the Department of Education in fiscal years

71

2002 and 2003 only to pay a subsidy to certain

72

community schools in which at least half of the

73

total number of students enrolled are severe

74

behaviorally handicapped students, to specify

75

control over Ohio Government Telecommunications and

76

associated funds, to require the State Lottery

77

Commission to enter into a multistate lottery if

78

the Governor so directs, alters the liability of

79

county clerks of court and recorders, to increase

80

the membership of the Nursing Facility

81

Reimbursement Study Council, to make corrections,

82

to repeal section 307.6910 of the Revised Code

83

effective July 1, 2007, and to make appropriations.

84

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

Section 1. That sections 122.15, 149.07, 166.03, 183.02,	85
317.33, 1309.528, 2701.20, 3313.37, 3313.375, 3318.31, 3353.07,	86
3353.11, 3770.02, 3770.03, 3770.06, 5111.34, 5111.872, 5123.043,	87
5123.046, 5123.048, 5123.049, 5123.0411, 5126.01, 5126.02,	88
5126.021, 5126.033, 5126.035, 5126.036, 5126.042, 5126.046,	89
5126.05, 5126.054, 5126.055, 5126.06, 5126.14, 5126.15, 5126.17,	90
5126.18, 5126.19, 5126.221, 5126.357, 5705.44, 5709.12, 5709.121,	91
5709.17, 5709.40, 5709.411, 5709.43, 5709.73, 5709.74, 5709.75,	92
5709.77, 5709.78, 5709.79, 5709.80, 5709.81, 5733.06, 5733.0610,	93
5733.11, 5733.98, 5739.01, 5741.01, 5747.058, 5747.13, and 5747.98	94
be amended, section 5126.056 (5126.057) be amended for the purpose	95
of adopting a new section number as indicated in parentheses, and	96
new section 5126.056 and sections 122.171, 122.60, 122.601,	97
122.602, 122.603, 122.604, 122.605, and 307.6910 of the Revised	98
Code be enacted to read as follows:	99

Sec. 122.15.  As used in sections 122.15 to 122.154 of the	100
Revised Code:	101

(A) "Edison center" means a cooperative research and	102
development facility that receives funding through the Thomas Alva	103
Edison grant program under division (C) of section 122.33 of the	104
Revised Code.	105

(B) "Ohio entity" means any corporation, limited liability	106
company, or unincorporated business organization, including a	107
general or limited partnership, that has its principal place of	108
business located in this state and has at least fifty per cent of	109
its gross assets and fifty per cent of its employees located in	110
this state. If a corporation, limited liability company, or	111
unincorporated business organization is a member of an affiliated	112
group, the gross assets and the number of employees of all of the	113
members of that affiliated group, wherever those assets and	114
employees are located, shall be included for the purpose of	115
determining the percentage of the corporation's, company's, or	116
organization's gross assets and employees that are located in this	117
state.	118

(C) "Qualified trade or business" means any trade or business	119
that primarily involves research and development, technology	120
transfer, bio-technology, information technology, or the	121
application of new technology developed through research and	122
development or acquired through technology transfer. "Qualified	123
trade or business" does not include any of the following:	124

(1) Any trade or business involving the performance of	125
services in the field of law, engineering, architecture,	126
accounting, actuarial science, performing arts, consulting,	127
athletics, financial services, or brokerage services, or any trade	128
or business where the principal asset of the trade or business is	129
the reputation or skill of one or more of its employees;	130

(2) Any banking, insurance, financing, leasing, rental,	131
investing, or similar business;	132

(3) Any farming business, including the business of raising	133
or harvesting trees;	134

(4) Any business involving the production or extraction of	135
products of a character with respect to which a deduction is	136
allowable under section 611, 613, or 613A of the "Internal Revenue	137
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 611, 613, or 613A;	138

(5) Any business of operating a hotel, motel, restaurant, or	139
similar business;	140

(6) Any trade or business involving a hospital, a private	141
office of a licensed health care professional, a group practice of	142
licensed health care professionals, or a nursing home. As used in	143
division (C)(6) of this section:	144

(a) "Nursing home" has the same meaning as in section 3721.50	145
of the Revised Code.	146

(b) "Hospital" has the same meaning as in section 3727.01 of	147
the Revised Code.	148

(D) "Information technology" means the branch of technology	149
devoted to the study and application of data and the processing	150
thereof; the automatic acquisition, storage, manipulation or	151
transformation, management, movement, control, display, switching,	152
interchange, transmission or reception of data, and the	153
development or use of hardware, software, firmware, and procedures	154
associated with this processing. Information technology includes	155
matters concerned with the furtherance of computer science and	156
technology, design, development, installation and implementation	157
of information systems and applications that in turn will be	158
licensed or sold to a specific target market. Information	159
technology does not include the creation of a distribution method	160
for existing products and services.	161

(E) "Insider" means an individual who owns, controls, or	162
holds power to vote five per cent or more of the outstanding	163
securities of a business. For purposes of determining whether an	164
investor is an insider, the percentage of voting power in the Ohio	165
entity held by a person related to the investor shall be added to	166
the investor's percentage of voting power in the same Ohio entity,	167
if the investor claimed the person related to the investor as a	168
dependent or a spouse on the investor's federal income tax return	169
for the previous tax year.	170

(E)(F)"Related to" means being the spouse, parent, child, or	171
sibling of an individual.	172

(F)(G)"Research and development" means designing, creating,	173
or formulating new or enhanced products, equipment, or processes,	174
and conducting scientific or technological inquiry and	175
experimentation in the physical sciences with the goal of	176
increasing scientific knowledge that may reveal the bases for new	177
or enhanced products, equipment, or processes.	178

(G)(H) "State tax liability" means any tax liability	179
incurred under division (D) of section 5707.03, section 5727.24,	180
5727.38, or 5747.02, or Chapter 5733. of the Revised Code.	181

(H)(I) "Technology transfer" means the transfer of	182
technology from one sector of the economy to another, including	183
the transfer of military technology to civilian applications,	184
civilian technology to military applications, or technology from	185
public or private research laboratories to military or civilian	186
applications.	187

(I)(J) "Affiliated group" means two or more persons related	188
in such a way that one of the persons owns or controls the	189
business operations of another of those persons. In the case of a	190
corporation issuing capital stock, one corporation owns or	191
controls the business operations of another corporation if it	192
owns more than fifty per cent of the other corporation's capital	193
stock with voting rights. In the case of a limited liability	194
company, one person owns or controls the business operations of	195
the company if that person's membership interest, as defined in	196
section 1705.01 of the Revised Code, is greater than fifty per	197
cent of combined membership interest of all persons owning such	198
interests in the company. In the case of an unincorporated	199
business organization, one person owns or controls the business	200
operations of the organization if, under the articles of	201
organization or other instrument governing the affairs of the	202
organization, that person has a beneficial interest in the	203
organization's profits, surpluses, losses, or other distributions	204
greater than fifty per cent of the combined beneficial interests	205
of all persons having such an interest in the organization.	206

(J)(K) "Money" means United States currency, or a check,	207
draft, or cashier's check for United States currency, payable on	208
demand and drawn on a bank.	209

Sec. 122.171. (A) As used in this section:

210

(1) "Capital investment project" means a plan of investment	211
at a project site for the acquisition, construction, renovation,	212
or repair of buildings, machinery, or equipment, but does not	213
include any of the following:	214

(a) Payments made for the acquisition of personal property	215
through operating leases;	216

(b) Project costs paid before January 1, 2002, or after	217
December 31, 2006;	218

(c) Payments made to a related member as defined in section	219
5733.042 of the Revised Code.	220

(2) "Eligible business" means a business with Ohio	221
operations that:	222

(a) Employed an average of at least one thousand employees	223
in full-time employment positions at a project site during each of	224
the twelve months preceding the application for a tax credit under	225
this section; and	226

(b) On or after January 1, 2002, has made payments for the	227
capital investment project of at least two hundred million dollars	228
at the project site during a period of three consecutive calendar	229
years that includes the calendar year that includes a day of the	230
taxpayer's taxable year with respect to which the credit is	231
granted;	232

(c) Has had a capital investment project reviewed and	233
approved by the tax credit authority as provided in divisions (C),	234
(D), and (E) of this section.	235

(3) "Full-time employment position" means a position of	236
employment for consideration for at least thirty-five hours a	237
week, or any other standard of service generally accepted by	238
custom as full-time employment within the industry, that has been	239
filled for at least one hundred eighty days immediately preceding	240
the filing of an application under this section, and for at least	241
one hundred eighty days during each taxable year with respect to	242
which the credit is granted.	243

(4) "Project site" means an integrated complex, as specified	244
by the tax credit authority under this section, within a five-mile	245
radius where a taxpayer in this state is primarily operating as a	246
manufacturer as defined in section 5739.011 of the Revised Code.	247

(B) The tax credit authority created under section 122.17 of	248
the Revised Code may grant tax credits under this section for the	249
purpose of fostering job retention in this state. Upon	250
application by an eligible business and upon consideration of the	251
recommendation of the director of budget and management, tax	252
commissioner, and director of development under division (C) of	253
this section, the tax credit authority may grant to an eligible	254
business a nonrefundable credit against the tax imposed by section	255
5733.06 or 5747.02 of the Revised Code for a period up to ten	256
taxable years. The credit shall be in an amount not exceeding	257
seventy-five per cent of the Ohio income tax withheld from the	258
employees of the eligible business occupying full-time employment	259
positions at the project site during the calendar year that	260
includes the last day of such business' taxable year with respect	261
to which the credit is granted. The amount of the credit shall	262
not be based on the Ohio income tax withheld from full-time	263
employees for a calendar year prior to the calendar year in which	264
the two hundred million dollar minimum investment referred to in	265
division (A)(2)(b) of this section is completed. The credit shall	266
be claimed only for the taxable years specified in the eligible	267
business' agreement with the tax credit authority under division	268
(E) of this section, but in no event shall the credit be claimed	269
for a taxable year terminating before the date specified in the	270
agreement.	271

Any unused portion of a tax credit may be carried forward	272
for not more than three additional years after the year for which	273
the credit is granted.	274

(C) A taxpayer who proposes a capital investment project to	275
retain jobs in this state may apply to the tax credit authority to	276
enter into an agreement for a tax credit under this section. The	277
director of development shall prescribe the form of the	278
application. After receipt of an application, the authority shall	279
forward copies of the application to the director of budget and	280
management, the tax commissioner, and the director of development,	281
each of whom shall review the application to determine the	282
economic impact the proposed project would have on the state and	283
the affected political subdivisions and shall submit a summary of	284
their determinations and recommendations to the authority. The	285
authority shall make no agreements under this section after June	286
30, 2007.	287

(D) Upon review of the determinations and recommendations	288
described in division (C) of this section, the tax credit	289
authority may enter into an agreement with the taxpayer for a	290
credit under this section if it determines all of the following:	291

(1) The taxpayer's capital investment project will result in	292
the retention of full-time employment positions in this state.	293

(2) The taxpayer is economically sound and has the ability	294
to complete the proposed capital investment project.	295

(3) The taxpayer intends to and has the ability to maintain	296
operations at the project site for at least twice the term of the	297
credit.	298

(4) Receiving the credit is a major factor in the taxpayer's	299
decision to begin, continue with, or complete the project.	300

(5) The political subdivisions in which the project is	301
located have agreed to provide substantial financial support to	302
the project.	303

(E) An agreement under this section shall include all of the	304
following:	305

(1) A detailed description of the project that is the	306
subject of the agreement, including the amount of the investment,	307
the period over which the investment has been or is being made,	308
and the number of full-time employment positions at the project	309
site;	310

(2) The method of calculating the number of full-time	311
employment positions as specified in division (A)(3) of this	312
section;	313

(3) The term and percentage of the tax credit, and the	314
first year for which the credit may be claimed;	315

(4) A requirement that the taxpayer maintain operations at	316
the project site for at least twice the number of years as the	317
term of the credit;	318

(5) A requirement that the taxpayer retain a specified	319
number of full-time employment positions at the project site and	320
within this state for the term of the credit, including a	321
requirement that the taxpayer continue to employ at least one	322
thousand employees in full-time employment positions at the	323
project site during the entire term of any agreement, subject to	324
division (E)(7) of this section;	325

(6) A requirement that the taxpayer annually report to the	326
director of development the number of full-time employment	327
positions subject to the credit, the amount of tax withheld from	328
employees in those positions, the amount of the payments made for	329
the capital investment project, and any other information the	330
director needs to perform the director's duties under this	331
section;	332

(7) A requirement that the director of development annually	333
review the annual reports of the taxpayer to verify the	334
information reported under division (E)(6) of this section and	335
compliance with the agreement. Upon verification, the director	336
shall issue a certificate to the taxpayer stating that the	337
information has been verified and identifying the amount of the	338
credit for the taxable year. The director shall not issue a	339
certificate for any year in which the total number of filled	340
full-time employment positions for each day of the calendar year	341
divided by three hundred sixty-five is less than ninety per cent	342
of the full-time employment positions specified in division (E)(5)	343
of this section. In determining the number of full-time	344
employment positions, no position shall be counted that is filled	345
by an employee who is included in the calculation of a tax credit	346
under section 122.17 of the Revised Code.	347

(8)(a) A provision requiring that the taxpayer, except as	348
otherwise provided in division (E)(8)(b) of this section, shall	349
not relocate employment positions from elsewhere in this state to	350
the project site that is the subject of the agreement for the	351
lesser of five years from the date the agreement is entered into	352
or the number of years the taxpayer is entitled to claim the	353
credit.	354

(b) The taxpayer may relocate employment positions from	355
elsewhere in this state to the project site that is the subject of	356
the agreement if the director of development determines both of	357
the following:	358

(i) That the site from which the employment positions would	359
be relocated is inadequate to meet market and industry conditions,	360
expansion plans, consolidation plans, or other business	361
considerations affecting the taxpayer;	362

(ii) That the legislative authority of the county, township,	363
or municipal corporation from which the employment positions would	364
be relocated has been notified of the relocation.	365

For purposes of this section, the movement of an employment	366
position from one political subdivision to another political	367
subdivision shall be considered a relocation of an employment	368
position unless the movement is confined to the project site. The	369
transfer of an individual employee from one political subdivision	370
to another political subdivision shall not be considered a	371
relocation of an employment position as long as the individual's	372
employment position in the first political subdivision is	373
refilled.	374

(9) A waiver by the taxpayer of any limitations periods	375
relating to assessments or adjustments resulting from the	376
taxpayer's failure to comply with the agreement.	377

(F) If a taxpayer fails to meet or comply with any condition	378
or requirement set forth in a tax credit agreement, the tax credit	379
authority may amend the agreement to reduce the percentage or term	380
of the credit. The reduction of the percentage or term shall take	381
effect in the taxable year immediately following the taxable year	382
in which the authority amends the agreement. If the taxpayer	383
relocates employment positions in violation of the provision	384
required under division (D)(8)(a) of this section, the taxpayer	385
shall not claim the tax credit under section 5733.0610 of the	386
Revised Code for any tax years following the calendar year in	387
which the relocation occurs, or shall not claim the tax credit	388
under section 5747.058 of the Revised Code for the taxable year in	389
which the relocation occurs and any subsequent taxable years.	390

(G) Financial statements and other information submitted to	391
the department of development or the tax credit authority by an	392
applicant for or recipient of a tax credit under this section, and	393
any information taken for any purpose from such statements or	394
information, are not public records subject to section 149.43 of	395
the Revised Code. However, the chairperson of the authority may	396
make use of the statements and other information for purposes of	397
issuing public reports or in connection with court proceedings	398
concerning tax credit agreements under this section. Upon the	399
request of the tax commissioner, the chairperson of the authority	400
shall provide to the commissioner any statement or other	401
information submitted by an applicant for or recipient of a tax	402
credit in connection with the credit. The commissioner shall	403
preserve the confidentiality of the statement or other	404
information.	405

(H) A taxpayer claiming a tax credit under this section	406
shall submit to the tax commissioner a copy of the director of	407
development's certificate of verification under division (E)(7) of	408
this section for the taxable year. However, failure to submit a	409
copy of the certificate does not invalidate a claim for a credit.	410

(I) For the purposes of this section, a taxpayer may include	411
a partnership, a corporation that has made an election under	412
subchapter S of chapter one of subtitle A of the Internal Revenue	413
Code, or any other business entity through which income flows as a	414
distributive share to its owners. A tax credit received under	415
this section by a partnership, S-corporation, or other such	416
business entity shall be apportioned among the persons to whom the	417
income or profit of the partnership, S-corporation, or other	418
entity is distributed, in the same proportions as those in which	419
the income or profit is distributed.	420

(J) If the director of development determines that a	421
taxpayer who has received a tax credit under this section is not	422
complying with the requirement under division (E)(4) of this	423
section or reduces the number of employees agreed to under	424
division (E)(5) of this section by more than ten per cent, the	425
director shall notify the tax credit authority of the	426
noncompliance. After receiving such a notice, and after giving	427
the taxpayer an opportunity to explain the noncompliance, the	428
authority may terminate the agreement and require the taxpayer to	429
refund to the state all or a portion of the credit claimed in	430
previous years.	431

In determining the portion of the credit to be refunded to	432
this state, the authority shall consider the effect of market	433
conditions on the taxpayer's project and whether the taxpayer	434
continues to maintain other operations in this state. After	435
making the determination, the authority shall certify the amount	436
to be refunded to the tax commissioner. The commissioner shall	437
make an assessment for that amount against the taxpayer under	438
Chapter 5733. or 5747. of the Revised Code. The time limitations	439
on assessments under Chapter 5733. or 5747. of the Revised Code do	440
not apply to an assessment under this division, but the	441
commissioner shall make the assessment within one year after the	442
date the authority certifies to the commissioner the amount to be	443
refunded.	444

(K) The director of development, after consultation with the	445
tax commissioner and in accordance with Chapter 119. of the	446
Revised Code, shall adopt rules necessary to implement this	447
section. The rules may provide for recipients of tax credits	448
under this section to be charged fees to cover administrative	449
costs of the tax credit program. At the time the director gives	450
public notice under division (A) of section 119.03 of the Revised	451
Code of the adoption of the rules, the director shall submit	452
copies of the proposed rules to the chairpersons of the standing	453
committees on economic development in the senate and the house of	454
representatives.	455

(L) On or before the thirty-first day of March of each year,	456
the director of development shall submit a report to the governor,	457
the president of the senate, and the speaker of the house of	458
representatives on the tax credit program under this section. The	459
report shall include information on the number of agreements that	460
were entered into under this section during the preceding calendar	461
year, a description of the project that is the subject of each	462
such agreement, and an update on the status of projects under	463
agreements entered into before the preceding calendar year.	464

Sec. 122.60. As used in sections 122.60 to 122.605 of the	465
Revised Code:	466

(A) "Capital access loan" means a loan made by a	467
participating financial institution to an eligible business that	468
may be secured by a deposit of money from the fund into the	469
participating financial institution's program reserve account.	470

(B) "Department" means the department of development.

471

(C) "Eligible business" means a for-profit business entity,	472
or a nonprofit entity, that had total annual sales in its most	473
recently completed fiscal year of less than ten million dollars	474
and that has a principal place of for-profit business or nonprofit	475
entity activity within the state, the operation of which, alone or	476
in conjunction with other facilities, will create new jobs or	477
preserve existing jobs and employment opportunities and will	478
improve the economic welfare of the people of the state. As used	479
in this division, "new jobs" does not include existing jobs	480
transferredfrom another facility within the state, and "existing	481
jobs" means only existing jobs at facilities within the same	482
municipal corporation or township in which the project, activity,	483
or enterprise that is the subject of a capital access loan is	484
located.	485

(D) "Financial institution" means any bank, trust company,	486
savings bank, or savings and loan association that is chartered by	487
and has a significant presence in the state, or any national bank,	488
federal savings and loan association, or federal savings bank that	489
has a significant presence in the state.	490

(E) "Fund" means the capital access loan program fund.

491

(F) "Participating financial institution" means a financial	492
institution that has a valid, current participation agreement with	493
the department.	494

(G) "Participation agreement" means the agreement between a	495
financial institution and the department under which a financial	496
institution may participate in the program.	497

(H) "Passive real estate ownership" means the ownership of	498
real estate for the sole purpose of deriving income from it by	499
speculation, trade, or rental.	500

(I) "Program" means the capital access loan program created	501
under section 122.602 of the Revised Code.	502

(J) "Program reserve account" means a dedicated account at	503
each participating financial institution that is the property of	504
the state and may be used by the participating financial	505
institution only for the purpose of recovering a claim under	506
section 122.604 of the Revised Code arising from a default on a	507
loan made by the participating financial institution under the	508
program.	509

Sec. 122.601. There is hereby created in the state treasury	510
the capital access loan program fund. The fund shall consist of	511
money deposited into it from the facilities establishment fund	512
pursuant to section 166.03 of the Revised Code and all money	513
deposited into it pursuant to section 122.602 of the Revised Code.	514
The total amount of money deposited into the fund from the	515
facilities establishment fund shall not exceed three million	516
dollars during any particular fiscal year of the department.	517

The department shall disburse money from the fund only to pay	518
the operating costs of the program, including the administrative	519
costs incurred by the department in connection with the program,	520
and only in keeping with the purposes specified in sections 122.60	521
to 122.605 of the Revised Code.	522

Sec. 122.602. (A)There is hereby created in the department	523
of development the capital access loan program to assist	524
participating financial institutions in making program loans to	525
eligible businesses that face barriers in accessing working	526
capital and obtaining fixed asset financing. In administering the	527
program, the director of development may do any of the following:	528

(1) Receive and accept grants, gifts, and contributions of	529
money, property, labor, and other things of value to be held,	530
used, and applied only for the purpose for which the grants,	531
gifts, and contributions are made, from individuals, private and	532
public corporations, the United States or any agency of the United	533
States, the state or any agency of the state, or any political	534
subdivision of the state;	535

(2) Agree to repay any contribution of money or return any	536
property contributed or the value of that property at the times,	537
in the amounts, and on the terms and conditions, excluding the	538
payment of interest, that the director consents to at the time a	539
contribution is made; and evidence obligations by notes, bonds, or	540
other written instruments;	541

(3) Adopt rules under Chapter 119. of the Revised Code to	542
carry out the purposes of the program specified in sections 122.60	543
to 122.605 of the Revised Code;	544

(4) Engage in all other acts, and enter into contracts and	545
execute all instruments, necessary or appropriate to carry out the	546
purposes specified in sections 122.60 to 122.605 of the Revised	547
Code.	548

(B) The director shall determine the eligibility of a	549
financial institution to participate in the program and may set a	550
limit on the number of financial institutions that may participate	551
in the program.	552

(C) To be considered eligible by the director to participate	553
in the program, a financial institution shall enter into a	554
participation agreement with the department that sets out the	555
terms and conditions under which the department will deposit	556
moneys from the fund into the financial institution's program	557
reserve account, specifies the criteria for loan qualification	558
under the program, and contains any additional terms the director	559
considers necessary.	560

(D) After receiving the certification required under	561
division (C) of section 122.603 of the Revised Code, the director	562
may disburse moneys from the fund to a participating financial	563
institution for deposit in its program reserve account if the	564
director determines that the capital access loan involved meets	565
all of the following criteria:	566

(1) It will be made to an eligible business.

567

(2) It will be used by the eligible business for a project,	568
activity, or enterprise that fosters economic development.	569

(3) It will not be made in order to enroll in the program	570
prior debt that is not covered under the program and that is owed	571
or was previously owed by an eligible business to the financial	572
institution.	573

(4) It will not be utilized for a project or development	574
related to the on-site construction or purchase of residential	575
housing.	576

(5) It will not be used to finance passive real estate	577
ownership.	578

(6) It conforms to the requirements of divisions (E), (F),	579
(G), (H), and (I) of this section, and to the rules adopted by the	580
director under division (A)(3) of this section.	581

(E) The director shall not approve a capital access loan to	582
an eligible business that exceeds two hundred fifty thousand	583
dollars for working capital or five hundred thousand dollars for	584
the purchase of fixed assets. An eligible business may apply for	585
the maximum amount of both working capital and the purchase of	586
fixed assets in the same capital access loan.	587

(F) A financial institution may apply to the director for	588
the approval of a capital access loan to any business that is	589
owned or operated by a person that has previously defaulted under	590
any state financial assistance program.	591

(G) Eligible businesses that apply for a capital access loan	592
shall comply with section 9.66 of the Revised Code.	593

(H) A financial institution may apply to the director for	594
the approval of a capital access loan that refinances a nonprogram	595
loan made by another financial institution.	596

(I) The director shall not approve a capital access loan	597
that refinances a nonprogram loan made by the same financial	598
institution, unless the amount of the refinanced loan exceeds the	599
existing debt, in which case only the amount exceeding the	600
existing debt is eligible for a loan under the program.	601

(J) The director shall not approve any capital access loan	602
made after June 30, 2007, or enter into a participation agreement	603
with any financial institution after that date.	604

Sec. 122.603. (A)(1) Upon approval by the director of	605
development and after entering into a participation agreement with	606
the department of development, a participating financial	607
institution making a capital access loan shall establish a program	608
reserve account. The account shall be an interest-bearing account	609
and shall contain only moneys deposited into it under the program	610
and the interest payable on the moneys in the account.	611

(2) All interest payable on the moneys in the program	612
reserve account shall be added to the moneys and held as an	613
additional loss reserve. The director may require that a portion	614
or all of the accrued interest so held in the account be released	615
to the department. If the director causes a release of accrued	616
interest, the director shall deposit the released amount into the	617
fund. The director shall not require the release of that accrued	618
interest more than twice in a fiscal year.	619

(B) When a participating financial institution makes a	620
capital access loan, it shall require the eligible business to pay	621
to the participating financial institution a fee in an amount that	622
is not less than one and one-half per cent, and not more than	623
three per cent, of the principal amount of the loan. The	624
participating financial institution shall deposit the fee into its	625
program reserve account, and it also shall deposit into the	626
account an amount of its own funds equal to the amount of the fee.	627
The participating financial institution may recover from the	628
eligible business all or part of the amount that the participating	629
financial institution is required to deposit into the account	630
under this division in any manner agreed to by the participating	631
financial institution and the eligible business.	632

(C) For each capital access loan made by a participating	633
financial institution, the participating financial institution	634
shall certify to the director, within a period specified by the	635
director, that the participating financial institution has made	636
the loan. The certification shall include the amount of the loan,	637
the amount of the fee received from the eligible business, the	638
amount of its own funds that the participating financial	639
institution deposited into its program reserve account to reflect	640
that fee, and any other information specified by the director.	641

(D) On receipt of a certification made under division (C) of	642
this section and subject to section 122.602 of the Revised Code,	643
the director shall disburse to the participating financial	644
institution from the fund an amount equal to ten per cent of the	645
principal amount of the particular capital access loan for deposit	646
into the participating financial institution's program reserve	647
account. The disbursement of moneys from the fund to a	648
participating financial institution does not require approval from	649
the controlling board.	650

(E) If the amount in a program reserve account exceeds an	651
amount equal to thirty-three per cent of a participating financial	652
institution's outstanding capital access loans, the department may	653
cause the withdrawal of the excess amount and the deposit of the	654
withdrawn amount into the fund.	655

(F)(1) The department may cause the withdrawal of the total	656
amount in a participating financial institution's program reserve	657
account if any of the following applies:	658

(a) The financial institution is no longer eligible to	659
participate in the program.	660

(b) The participation agreement expires without renewal by	661
the department or the financial institution.	662

(c) The financial institution has no outstanding capital	663
access loans.	664

(d) The financial institution has not made a capital access	665
loan within the preceding twenty-four months.	666

(2) If the department causes a withdrawal under division	667
(F)(1) of this section, the department shall deposit the withdrawn	668
amount into the fund.	669

Sec. 122.604. (A) If a participating financial institution	670
determines that a portion or all of a capital access loan is	671
uncollectible, it may submit a claim to the department of	672
development for approval of the release of moneys from its program	673
reserve account.	674

(B) The claim may include the amount of principal plus	675
accrued interest owed. The amount of principal included in the	676
claim may not exceed the principal amount covered by the program.	677
The amount of accrued interest included in the claim may not	678
exceed the accrued interest attributable to the covered principal	679
amount.	680

(C) The participating financial institution shall determine	681
the timing and amount of delinquency on a capital access loan in a	682
manner consistent with the participating financial institution's	683
normal method for making these determinations on similar	684
nonprogram loans.	685

(D) If the participating financial institution files two or	686
more claims at the same time or approximately the same time and	687
there are insufficient funds in its program reserve account at	688
that time to cover the entire amount of the claims, the	689
participating financial institution may specify an order of	690
priority in which the department shall approve the release of	691
funds from the account in relation to the claims.	692

(E) If subsequent to the payment of a claim, a participating	693
financial institution recovers from an eligible business any	694
amount covered by the paid claim, the participating financial	695
institution shall promptly deposit the amount recovered into its	696
program reserve account, less any reasonable expenses incurred.	697

Sec. 122.605.  Each participating financial institution shall	698
submit an annual report to the department of development on or	699
before the thirty-first day of March of each year. The report	700
shall include or be accompanied by all of the following:	701

(A) Information regarding the participating financial	702
institution's outstanding capital access loans, its capital access	703
loan losses, and other related matters that the department	704
considers appropriate;	705

(B) A statement of the total amount of the participating	706
financial institution's capital access loans for which the	707
department has made disbursements from the fund under the program;	708

(C) A copy of the participating financial institution's most	709
recent financial statement.	710

Sec. 149.07.  One bound copy of each of the final journals	711
and appendixes and fifty copies of maps of Ohio showing	712
congressional, senatorial, and judicial districts of the state	713
shall be sentmade available to each member of the general	714
assembly.	715

Sec. 166.03.  (A) There is hereby created the facilities	716
establishment fund within the state treasury, consisting of	717
proceeds from the issuance of obligations as specified under	718
section 166.08 of the Revised Code; the moneys received by the	719
state from the sources specified in section 166.09 of the Revised	720
Code; service charges imposed under sections 166.06 and 166.07 of	721
the Revised Code; any grants, gifts, or contributions of moneys	722
received by the director of development to be used for loans made	723
under section 166.07 of the Revised Code or for the payment of the	724
allowable costs of project facilities; and all other moneys	725
appropriated or transferred to the fund. Moneys in the loan	726
guarantee fund in excess of four per cent of the unpaid principal	727
amount of loan repayments guaranteed under section 166.06 of the	728
Revised Code, but subject to the provisions and requirements of	729
any guarantee contracts, may be transferred to the facilities	730
establishment fund by the treasurer of state upon the order of the	731
director of development. Moneys received by the state under	732
Chapter 122. of the Revised Code, to the extent allocable to the	733
utilization of moneys derived from proceeds of the sale of	734
obligations pursuant to section 166.08 of the Revised Code, shall	735
be credited to the facilities establishment fund.	736

(B) All moneys appropriated or transferred to the facilities	737
establishment fund may be released at the request of the director	738
of development for payment of allowable costs or the making of	739
loans under this chapter, for transfer to the loan guarantee fund	740
established in section 166.06 of the Revised Code, or for use for	741
the purpose of or transfer to the funds established by sections	742
122.35, 122.42, 122.54, 122.55, 122.56, 122.561, 122.57, 122.601,	743
and 122.80 of the Revised Code and, until July 1, 2003, the funds	744
fund established by sections 122.26 andsection 166.031 of the	745
Revised Code, and, until July 1, 2007, the fund established by	746
section 122.26 of the Revised Code, but only for such of those	747
purposes as are within the authorization of Section 13 of Article	748
VIII, Ohio Constitution, in all cases subject to the approval of	749
the controlling board.	750

(C) The department of development, in the administration of	751
the facilities establishment fund, is encouraged to utilize and	752
promote the utilization of, to the maximum practicable extent, the	753
other existing programs, business incentives, and tax incentives	754
that department is required or authorized to administer or	755
supervise.	756

Sec. 183.02.  This section's references to years mean state	757
fiscal years.	758

All payments received by the state pursuant to the tobacco	759
master settlement agreement shall be deposited into the state	760
treasury to the credit of the tobacco master settlement agreement	761
fund, which is hereby created. All investment earnings of the	762
fund shall also be credited to the fund. Except as provided in	763
division (I) of this section, payments and interest credited to	764
the fund shall be transferred by the director of budget and	765
management as follows:	766

(A)(1) Of the first payment credited to the tobacco master	767
settlement agreement fund in 2000 and the net amounts credited to	768
the fund annually from 2000 to 2006 and in 2012, the following	769
amount or percentage shall be transferred to the tobacco use	770
prevention and cessation trust fund, created in section 183.03 of	771
the Revised Code:	772

(2) Of the net amounts credited to the tobacco master	783
settlement agreement fund in 2013, the director shall transfer to	784
the tobacco use prevention and cessation trust fund the amount not	785
transferred to the tobacco use prevention and cessation trust fund	786
from the net amounts credited to the tobacco master settlement	787
agreement fund in 2002 due to H.B. No. 405 of the 124th general	788
assembly. Of the net amounts credited to the tobacco master	789
settlement agreement fund in 2014, the director shall transfer to	790
the tobacco use prevention and cessation trust fund the amount not	791
transferred to the tobacco use prevention and cessation trust fund	792
from the net amounts credited to the tobacco master settlement	793
agreement fund in 2003 due to H.B. No. 405 of the 124th general	794
assembly.	795

(B) Of the first payment credited to the tobacco master	796
settlement agreement fund in 2000 and the net amounts credited to	797
the fund annually in 2000 and 2001, the following amount or	798
percentage shall be transferred to the law enforcement	799
improvements trust fund, created in section 183.10 of the Revised	800
Code:	801

(C)(1) Of the first payment credited to the tobacco master	806
settlement agreement fund in 2000 and the net amounts credited to	807
the fund annually from 2000 to 2011, the following percentages	808
shall be transferred to the southern Ohio agricultural and	809
community development trust fund, created in section 183.11 of the	810
Revised Code:	811

(2) Of the net amounts credited to the tobacco master	823
settlement agreement fund in 2013, the director shall transfer to	824
the Ohio public health priorities trust fund the amount not	825
transferred to the Ohio public health priorities trust fund from	826
the net amounts credited to the tobacco master settlement	827
agreement fund in 2002 due to Sub. H.B. No. 405 of the 124th	828
general assembly. Of the net amounts credited to the tobacco	829
master settlement agreement fund in 2014, the director shall	830
transfer to the Ohio health priorities trust fund the amount not	831
transferred to the Ohio health priorities trust fund from the net	832
amounts credited to the tobacco master settlement agreement fund	833
in 2003 due to Sub. H.B. No. 405 of the 124th general assembly.	834

(D)(1) The following percentages of the net amounts credited	835
to the tobacco master settlement agreement fund annually shall be	836
transferred to Ohio's public health priorities trust fund, created	837
in section 183.18 of the Revised Code:	838

(2) Of the net amounts credited to the tobacco master	853
settlement agreement fund in 2013, the director shall transfer to	854
the Ohio public health priorities trust fund the amount not	855
transferred to the Ohio public health priorities trust fund from	856
the net amounts credited to the tobacco master settlement	857
agreement fund in 2002 due to Sub. H.B. No. 405 of the 124th	858
general assembly. Of the net amounts credited to the tobacco	859
master settlement agreement fund in 2014, the director shall	860
transfer to the Ohio health priorities trust fund the amount not	861
transferred to the Ohio health priorities trust fund from the net	862
amounts credited to the tobacco master settlement agreement fund	863
in 2003 due to Sub. H.B. No. 405 of the 124th general assembly.	864

(E)(1) The following percentages of the net amounts credited	865
to the tobacco master settlement agreement fund annually shall be	866
transferred to the biomedical research and technology transfer	867
trust fund, created in section 183.19 of the Revised Code:	868

(2) Of the net amounts credited to the tobacco master	880
settlement agreement fund in 2013, the director shall transfer to	881
the biomedical research and technology transfer trust fund the	882
amount not transferred to the biomedical research and technology	883
transfer trust fund from the net amounts credited to the tobacco	884
master settlement agreement fund in 2002 due to Sub. H.B. No. 405	885
of the 124th general assembly. Of the net amounts credited to the	886
tobacco master settlement agreement fund in 2014, the director	887
shall transfer to the biomedical research and technology transfer	888
trust fund the amount not transferred to the biomedical research	889
and technology transfer trust fund from the net amounts credited	890
to the tobacco master settlement agreement fund in 2003 due to	891
Sub. H.B. No. 405 of the 124th general assembly.	892

(F) Of the amounts credited to the tobacco master settlement	893
agreement fund annually, the following amounts shall be	894
transferred to the education facilities trust fund, created in	895
section 183.26 of the Revised Code:	896

(G) Of the amounts credited to the tobacco master settlement	908
agreement fund annually, from 2000 to 2012 five million dollars	909
per year shall be transferred to the education facilities	910
endowment fund, created in section 183.27 of the Revised Code.	911
From 2013 to 2025, the following percentages of the amounts	912
credited to the tobacco master settlement agreement fund annually	913
shall be transferred to the endowment fund:	914

(H) The following percentages of the net amounts credited to	919
the tobacco master settlement agreement fund annually shall be	920
transferred to the education technology trust fund, created in	921
section 183.28 of the Revised Code:	922

(I) If in any year from 2001 to 2012 the payments and	937
interest credited to the tobacco master settlement agreement fund	938
during the year amount to less than the amounts required to be	939
transferred to the education facilities trust fund and the	940
education facilities endowment fund that year, the director of	941
budget and management shall make none of the transfers required by	942
divisions (A) to (H) of this section.	943

(J) If in any year from 2000 to 2025 the payments credited	944
to the tobacco master settlement agreement fund during the year	945
exceed the following amounts, the director of budget and	946
management shall transfer the excess to the income tax reduction	947
fund, created in section 131.44 of the Revised Code:	948

Sec. 307.6910. (A) As used in this section, "contracting	960
subdivision" means any political subdivision or taxing district	961
that enters into an agreement with a board of county commissioners	962
as authorized by this section.	963

(B) A board of county commissioners may enter into an	964
agreement with the legislative authority of one or more political	965
subdivisions or taxing districts located wholly or partially	966
within the territorial boundaries of the county providing for both	967
of the following:	968

(1) Authorization for the board of county commissioners to	969
receive funds due the political subdivision or taxing district	970
from the county treasury, other than funds raised by taxes levied	971
by the political subdivision or taxing district, including, but	972
not limited to, the political subdivision's or taxing district's	973
share of the undivided local government fund, provided those	974
received funds may lawfully be applied to the purpose for which	975
money is owed to the county;	976

(2) The crediting of the funds so received by the county	977
against money owed to it by the political subdivision or taxing	978
district.	979

The agreement shall be in writing and include the signature	980
of an authorized officer or representative of the county and of	981
the political subdivision or taxing district.	982

(C) Upon entering into an agreement, the board of county	983
commissioners shall cause two copies of the agreement, certified	984
by an authorized officer or representative of the county and of	985
the contracting subdivision, to be transmitted to the county	986
auditor. The county auditor shall forward one copy of the	987
agreement to the county treasurer and shall present the other copy	988
of the agreement to the county budget commission. The county	989
budget commission shall give effect to the agreement in	990
determining or revising the amounts to be credited to the funds of	991
the county and the contracting subdivision in the official or	992
amended official certificate of estimated resources under sections	993
5705.35 and 5705.36 of the Revised Code.	994

(D) The county auditor may rely on the certified agreement	995
entered into under division (B) of this section for the purpose of	996
making a certification under division (D) of section 5705.41 of	997
the Revised Code for a county contract or order of money incurred	998
on behalf of the contracting subdivision if the county auditor	999
finds that the amount credited to the county under division (B)(2)	1000
of this section is available in the amount and at the time	1001
necessary to meet the obligation.	1002

(E) The county auditor and county treasurer, in carrying	1003
out their statutory duties regarding the crediting and	1004
distribution of money to the funds of the parties to agreements	1005
entered into under this section, shall give effect to any such	1006
agreements certified to the county auditor under this section. A	1007
certified agreement shall not affect the time at which moneys	1008
otherwise would be available by law to the parties to the	1009
agreement.	1010

(F) The terms of an agreement entered into under this	1011
section may be enforced in the court of common pleas of the county	1012
that is a party to the agreement in an action for a writ of	1013
mandamus. For purposes of that action, it shall be deemed that	1014
the legislative authority of the contracting subdivision has a	1015
duty to allow payments to the county as specified in the	1016
agreement, that the board of county commissioners of the county	1017
has a duty to receive those payments in the manner specified in	1018
the agreement, and that those duties are specifically enjoined by	1019
law and result from an office, trust, or station.	1020

Sec. 317.33.  (A) Except as otherwise provided in division	1021
(B) of this section, ifIf a county recorder refuses to accept a	1022
deed or other instrument of writing presented to the recorder for	1023
recording, the legal fee for recording it being paid or tendered;	1024
or refuses to give a receipt therefor, when required; or fails to	1025
number consecutively all deeds or other instruments of writing	1026
upon receipt; or fails to index a deed or other instrument of	1027
writing, by the morning of the day next after it is filed for	1028
record; or neglects, without reasonable cause, to record a deed or	1029
other instrument of writing within twenty days after it is	1030
received for record; or demands and receives a greater fee for the	1031
recorder's services than that allowed by law; or knowingly	1032
endorses on a deed or other instrument of writing a different date	1033
from that on which it was presented for record, or a different	1034
date from that on which it was recorded; or refuses to make out	1035
and certify a copy of any record in the recorder's office, when	1036
demanded, the recorder's legal fee for the copy being paid or	1037
tendered; or purposely destroys, defaces, or injures any book,	1038
record, or seal belonging to the recorder's office, or any deed or	1039
other instrument of writing deposited in the recorder's office for	1040
record, or negligently suffers it to be destroyed, defaced, or	1041
injured; or does or omits any other act, contrary to sections	1042
317.01 to 317.33 of the Revised Code, the recorder shall be liable	1043
solely on the recorder's bond to any party harmed by the improper	1044
conduct.	1045

(B) If a county recorder, acting under division (B) of	1046
section 317.13 of the Revised Code, improperly refuses to record	1047
an instrument of writing in a manner that is notExcept as	1048
described in division (A)(6)(b) of section 2744.03 of the Revised	1049
Code, thea county recorder shall not be personally liable on	1050
account of the improper refusalfor any act or omission for which	1051
a recorder is liable under this section, and the surety that	1052
issued the recorder's bond shall not have a right of subrogation	1053
against the recorder on account of a claim made on the recorder's	1054
bond as a result of the improper refusal.	1055

Sec. 1309.401.        Sec.  1309.528.  (A) All fees collected by the	1056
secretary of state for filings under Title XIII or XVII of the	1057
Revised Code shall be deposited into the state treasury to the	1058
credit of the corporate and uniform commercial code filing fund,	1059
which is hereby created. All moneys credited to the fund,	1060
subject to division (B) of this section, shall be used only for	1061
the purpose of paying for the operations of the office of the	1062
secretary of state, other than the division of elections, and for	1063
the purpose of paying for expenses relating to the processing of	1064
filings under Title XIII or XVII of the Revised Code.	1065

(B) The secretary of state business technology fund There is	1066
hereby created in the state treasury the secretary of state	1067
business technology fund. One per cent of the money credited to	1068
the corporate and uniform commercial code filing fund created in	1069
division (A) of this section shall be transferred to the credit of	1070
this fund. All moneys credited to this fund shall be used only	1071
for the upkeep, improvement, or replacement of equipment, or for	1072
the purpose of training employees in the use of equipment, used to	1073
conduct business of the secretary of state's office under Title	1074
XIII or XVII of the Revised Code.	1075

Sec. 2701.20.  (A) Notwithstanding any other provision of	1076
the Revised Code, if a person presents a document to the clerk of	1077
a court of record for filing or for docketing and indexing, the	1078
clerk may refuse to accept the document for filing or refuse to	1079
docket and index the document if the document is not required or	1080
authorized to be filed or to be docketed and indexed with the	1081
clerk or the clerk has reasonable cause to believe the document is	1082
materially false or fraudulent. This division does not create a	1083
duty upon the clerk to inspect, evaluate, or investigate a	1084
document that is presented for filing or for docketing and	1085
indexing.	1086

(B) If the clerk of a court of record, pursuant to division	1087
(A) of this section, refuses to accept a document for filing or	1088
refuses to docket and index a document, the person who presented	1089
the document to the clerk may commence an action in or apply for	1090
an order from the court that the clerk serves to require the clerk	1091
to accept the document for filing or to docket and index the	1092
document. If the court determines that the document is	1093
appropriate for filing or for docketing and indexing, it shall	1094
order the clerk to accept the document for that purpose.	1095

(C) If the clerk of a court of record, acting under this	1096
section in a manner that is not described in division (A)(6)(b) of	1097
section 2744.03 of the Revised Code, improperly refuses to accept	1098
a document for filing or, refuses to docket and index a document,	1099
theor performs any other act or omission that gives rise to	1100
liability in the performance of the duties of a clerk of court,	1101
the clerk shall be liable solely on the clerk's bond to any party	1102
harmed by the improper refusal, act, or omission. The clerk shall	1103
not be personally liable on account of the improper refusal and	1104
the surety that issued the bond shall not have a right of	1105
subrogation against the clerk on account of a claim made on the	1106
clerk's bond as a result of the improper refusal.	1107

Sec. 3313.37.  (A)(1) The board of education of any city,	1108
local, or exempted village school district may build, enlarge,	1109
repair, and furnish the necessary schoolhouses, purchase or lease	1110
sites therefor, or rights-of-way thereto, or purchase or lease	1111
real estate to be used as playgrounds for children or rent	1112
suitable schoolrooms, either within or without the district, and	1113
provide the necessary apparatus and make all other necessary	1114
provisions for the schools under its control.	1115

(2) A governing board of an educational service center may	1116
acquire, lease or lease-purchase, or enter into a contract to	1117
purchase, lease or lease-purchase, or sell real and personal	1118
property and may construct, enlarge, repair, renovate, furnish, or	1119
equip facilities, buildings, or structures for the educational	1120
service center's purposes. The board may enter into loan	1121
agreements, including mortgages, for the acquisition of such	1122
property. If a governing board exercises any of these powers to	1123
acquire office or classroom space, the board of county	1124
commissioners has no obligation to provide and equip offices and	1125
to provide heat, light, water, and janitorial services for the use	1126
of the service center pursuant to section 3319.19 of the Revised	1127
Code, unless there is a contract as provided by division (D) of	1128
that section.	1129

(3) A board of county commissioners may issue securities of	1130
the county pursuant to Chapter 133. of the Revised Code for the	1131
acquisition of real and personal property or for the construction,	1132
enlargement, repair, or renovation of facilities, buildings, or	1133
structures by an educational service center, but only if the	1134
county has a contract under division (D) of section 3319.19 of the	1135
Revised Code with the educational service center whereby the	1136
educational service center agrees to pay the county an amount	1137
equal to the debt charges on the issued securities on or before	1138
the date those charges fall due. For the purposes of this	1139
section, "debt charges" and "securities" have the same meanings as	1140
in section 133.01 of the Revised Code.	1141

(B)(1) Boards of education of city, local, and exempted	1142
village school districts may acquire land by gift or devise, by	1143
purchase, or by appropriation. Lands purchased may be purchased	1144
for cash, by installment payments, with or without a mortgage, by	1145
entering into lease-purchase agreements, or by lease with an	1146
option to purchase, provided that if the purchase price is to be	1147
paid over a period of time, such payments shall not extend for a	1148
period of more than five years. A special tax levy may be	1149
authorized by the voters of the school district in accordance with	1150
section 5705.21 of the Revised Code to provide a special fund to	1151
meet the future time payments.	1152

(2) For the purposes of section 5705.21 of the Revised Code,	1153
acquisition of land under the provisions of this division shall be	1154
considered a necessary requirement of the school district.	1155

(3) Boards of education of city, local, and exempted village	1156
school districts may acquire federal land at a discount by a	1157
lease-purchase agreement for use as a site for the construction of	1158
educational facilities or for other related purposes. External	1159
administrative and other costs pertaining to the acquisition of	1160
federal land at a discount may be paid from funds available to the	1161
school district for operating purposes. Such boards of education	1162
may also acquire federal land by lease-purchase agreements, by	1163
negotiation, or otherwise.	1164

(4) As used in this division:

1165

(a) "Office equipment" includes but is not limited to	1166
typewriters, copying and duplicating equipment, and computer and	1167
data processing equipment.	1168

(b) "Software for instructional purposes" includes computer	1169
programs usable for computer assisted instruction, computer	1170
managed instruction, drill and practice, and problem simulations.	1171

A board of education or governing board of an educational	1172
service center may acquire the necessary office equipment, and	1173
computer hardware and software for instructional purposes, for the	1174
schools under its control by purchase, by lease, by installment	1175
payments, by entering into lease-purchase agreements, or by lease	1176
with an option to purchase. In the case of a city, exempted	1177
village, or local school district, if the purchase price is to be	1178
paid over a period of time, the contract setting forth the terms	1179
of such purchase shall be considered a continuing contract	1180
pursuant to section 5705.41 of the Revised Code. Payments shall	1181
not extend for a period of more than five years. Costs relating	1182
to the acquisition of necessary apparatus may be paid from funds	1183
available to the school district or educational service center for	1184
operating purposes.	1185

(5) A board of education or governing board of an	1186
educational service center may acquire the necessary equipment for	1187
the maintenance or physical upkeep of facilities and land under	1188
its control by entering into lease-purchase agreements. If	1189
payments under the lease-purchase agreement are to be made over a	1190
period of time, the agreement shall be considered a continuing	1191
contract pursuant to section 5705.41 of the Revised Code, and such	1192
payments shall not extend for a period of more than five years.	1193

Sec. 3313.375.  The board of education of a city, local,	1194
exempted village, or joint vocational school district or the	1195
governing board of an educational service center may enter into a	1196
lease-purchase agreement providing for construction; enlarging or	1197
other improvement, furnishing, and equipping; lease; and eventual	1198
acquisition of a building or improvements to a building for any	1199
school district or educational service center purpose. The	1200
agreement shall provide for a lease for a series of one-year	1201
renewable lease terms totaling not more than thirty years. The	1202
agreement shall provide that at the end of the series of lease	1203
terms provided for in the agreement the title to the leased	1204
property shall be vested in the school district or educational	1205
service center, if all obligations of the school district or	1206
educational service center provided for in the agreement have been	1207
satisfied. The agreement may, in addition to the rental payments,	1208
require the school district or educational service center to pay	1209
the lessor a lump-sum amount as a condition of obtaining title to	1210
the leased property. In conjunction with the agreement, thea	1211
school district board of education or an educational service	1212
center governing board may grant leases, easements, or licenses	1213
for underlying land or facilities under the board's control for	1214
like periodsterms not exceeding five years beyond the final	1215
renewal term of the lease-purchase agreement entered into pursuant	1216
to this section. Payments under the agreement may be deemed to	1217
be, and paid as, current operating expenses.	1218

The obligations under a lease-purchase agreement entered into	1219
pursuant to this section shall not be considered to be net	1220
indebtedness of a school district under section 133.06 of the	1221
Revised Code.	1222

Sec. 3318.31.  (A) The Ohio school facilities commission may	1223
perform any act and ensure the performance of any function	1224
necessary or appropriate to carry out the purposes of, and	1225
exercise the powers granted under, Chapter 3318. of the Revised	1226
Code, including any of the following:	1227

(1) Adopt, amend, and rescind, pursuant to section 111.15 of	1228
the Revised Code, rules for the administration of programs	1229
authorized under Chapter 3318. of the Revised Code.	1230

(2) Contract with, retain the services of, or designate, and	1231
fix the compensation of, such agents, accountants, consultants,	1232
advisers, and other independent contractors as may be necessary or	1233
desirable to carry out the programs authorized under Chapter 3318.	1234
of the Revised Code.	1235

(3) Receive and accept any gifts, grants, donations, and	1236
pledges, and receipts therefrom, to be used for the programs	1237
authorized under Chapter 3318. of the Revised Code.	1238

(4) Make and enter into all contracts, commitments, and	1239
agreements, and execute all instruments, necessary or incidental	1240
to the performance of its duties and the execution of its rights	1241
and powers under Chapter 3318. of the Revised Code.	1242

(B) The commission shall appoint and fix the compensation of	1243
an executive director who shall serve at the pleasure of the	1244
commission. The executive director shall supervise the operations	1245
of the commission. The executive director also shall employ and	1246
fix the compensation of such employees as will facilitate the	1247
activities and purposes of the commission, who shall serve at the	1248
pleasure of the executive director. The employees of the	1249
commission shall be exempt from Chapter 4117. of the Revised Code	1250
and shall not be public employees as defined in section 4117.01 of	1251
the Revised Code.	1252

(C) The attorney general shall serve as the legal	1253
representative for the commission and may appoint other counsel as	1254
necessary for that purpose in accordance with section 109.07 of	1255
the Revised Code.	1256

Sec. 3353.07. On and after the effective date of this	1257
amendment, the Ohio educational telecommunications network	1258
commission shall operate the(A) As used in this section,	1259
"broadcasting station" has the same meaning as in section 3353.01	1260
of the Revised Code.	1261

(B) Ohio government telecommunications shall be funded	1262
through the Ohio educational telecommunications network commission	1263
and shall be managed by a broadcasting station under a contract.	1264
The contract shall not take effect until the program committee of	1265
Ohio government telecommunications approves the contract. The	1266
broadcasting station shall manage the staff of Ohio government	1267
telecommunications.	1268

(C)(1) There is hereby created the program committee of Ohio	1269
government telecommunications system that was operated by the	1270
capitol square review and advisory board prior to the effective	1271
date of this amendmentshall consist of the president of the	1272
senate, speaker of the house of representatives, minority leader	1273
of the senate, and minority leader of the house of	1274
representatives, or their designees. By a vote of a majority of	1275
its members, the program committee may add additional members to	1276
the committee.	1277

(2) The program committee shall adopt rules that govern the	1278
operation of Ohio government telecommunications and the coverage	1279
and distribution of official governmental activities by Ohio	1280
government telecommunications.	1281

Sec. 3353.11.  There is hereby created in the state treasury	1282
the governmental television/telecommunications operating fund. The	1283
fund shall consist of money received from contract productions of	1284
the Ohio government telecommunications studio and shall be used	1285
for operations or equipment breakdowns related to the studio. Only	1286
Ohio government telecommunications may authorize the spending of	1287
money in the fund. All investment earnings onof the fund shall	1288
be credited to the fund.	1289

Sec. 3770.02.  (A) Subject to the advice and consent of the	1290
senate, the governor shall appoint a director of the state lottery	1291
commission who shall serve at the pleasure of the governor. The	1292
director shall devote full time to the duties of the office and	1293
shall hold no other office or employment. The director shall meet	1294
all requirements for appointment as a member of the commission and	1295
shall by experience and training possess such management skills as	1296
that would equip the director to administer an enterprise of the	1297
nature of a state lottery. The director shall receive an annual	1298
salary in accordance with pay range 48 of section 124.152 of the	1299
Revised Code.	1300

(B)(1) The director shall attend all meetings of the	1301
commission and shall act as its secretary. The director shall	1302
keep a record of all commission proceedings and shall keep such	1303
the commission's records, files, and documents at the commission's	1304
principal office. All records of the commission's meetings shall	1305
be available for inspection by any member of the public, upon a	1306
showing of good cause and prior notification to the director.	1307

(2) The director shall be the commission's executive officer	1308
and shall be responsible for keeping all commission records and	1309
supervising and administering the state lottery in accordance with	1310
this chapter, and carrying out all commission rules adopted under	1311
section 3770.03 of the Revised Code.	1312

(C)(1) The director shall appoint an assistant director and	1313
deputy directors of marketing, operations, sales, finance, public	1314
relations, security, and administration, and as many regional	1315
managers as are required. The director may also appoint such	1316
necessary professional, technical, and clerical assistants as are	1317
necessary. All such officers and employees shall be appointed and	1318
compensated pursuant to Chapter 124. of the Revised Code. Regional	1319
and assistant regional managers, sales representatives, and any	1320
lottery executive account representatives shall remain in the	1321
unclassified service.	1322

(2) The director, in consultation with the director of	1323
administrative services, may establish standards of proficiency	1324
and productivity for commission field representatives.	1325

(D) The director shall request the bureau of criminal	1326
identification and investigation, the department of public safety,	1327
or any other state, local, or federal agency, to supply the	1328
director with the criminal records of any job applicant and may	1329
periodically request suchthe criminal records of commission	1330
employees. At or prior to the time of making such a request, the	1331
director shall require a job applicant or commission employee to	1332
obtain fingerprint cards prescribed by the superintendent of the	1333
bureau of criminal identification and investigation at a qualified	1334
law enforcement agency, and the director shall cause these	1335
fingerprint cards to be forwarded to the bureau of criminal	1336
identification and investigation and the federal bureau of	1337
investigation. The commission shall assume the cost of obtaining	1338
the fingerprint cards and shall pay to each agency supplying such	1339
criminal records for each investigation under this division a	1340
reasonable fee, as determined by the agency.	1341

(E) The director shall license lottery sales agents pursuant	1342
to section 3770.05 of the Revised Code, and, when it is considered	1343
necessary, may revoke or suspend the license of any lottery sales	1344
agent when such action is considered necessary.	1345

(F) The director shall confer at least once each month with	1346
the commission at which time the director shall advise it of	1347
regarding the operation and administration of the lottery. The	1348
director shall make available at the request of the commission all	1349
documents, files, and other records pertaining to the operation	1350
and administration of the lottery. The director shall prepare and	1351
make available to the commission each month a complete and	1352
accurate accounting of lottery revenues, prize money disbursements	1353
and the cost of goods and services awarded as prizes, operating	1354
expenses, and all other relevant financial information, including	1355
an accounting of all transfers made from any lottery funds in the	1356
custody of the treasurer of state to benefit education.	1357

(G) The director may enter into contracts for the operation	1358
or promotion of the lottery pursuant to Chapter 125. of the	1359
Revised Code. The director may enter into agreements to assist	1360
organizations that deal with problem gambling.	1361

(H)(1) Pursuant to rules adopted by the commission under	1362
section 3770.03 of the Revised Code, the director shall require	1363
any lottery sales agents to either mail directly to the state	1364
lottery commission or to deposit to the credit of the state	1365
lottery fund, in banking institutions designated by the treasurer	1366
of state, net proceeds due the lottery commission as determined by	1367
the director, and to file with the director or the director's	1368
designee reports of their receipts and transactions in the sale of	1369
lottery tickets in suchthe form as required by the director.	1370

(2) Pursuant to rules adopted by the commission under	1371
Chapter 119. of the Revised Code, the director may impose	1372
penalties for the failure of a sales agent to transfer funds to	1373
the commission in a timely manner. Penalties may include monetary	1374
penalties, immediate suspension or revocation of a license, or any	1375
other penalty the commission adopts by rule.	1376

(I) The director may arrange for any person, or any banking	1377
institution, to perform such functions and services in connection	1378
with the operation of the lottery as the director may consider	1379
necessary to carry out this chapter.	1380

(J)(1) As used in this chapter, "statewide joint lottery	1381
game" means a lottery game that the commission sells solely within	1382
this state under an agreement with other lottery jurisdictions to	1383
sell the same lottery game solely within their statewide or other	1384
jurisdictional boundaries.	1385

(2) If the governor directs the director to do so, the	1386
director shall enter into an agreement with other lottery	1387
jurisdictions to conduct statewide joint lottery games. If the	1388
governor signs the agreement personally or by means of an	1389
authenticating officer pursuant to section 107.15 of the Revised	1390
Code, the director then may conduct statewide joint lottery games	1391
under the agreement.	1392

(3) The entire net proceeds from any statewide joint lottery	1393
games shall be used to fund elementary, secondary, vocational, and	1394
special education programs in this state.	1395

(4) The commission shall conduct any statewide joint lottery	1396
games in accordance with rules it adopts under division (B)(5) of	1397
section 3770.03 of the Revised Code.	1398

Sec. 3770.03.  (A) The state lottery commission shall	1399
promulgate rules under which a statewide lottery may be conducted.	1400
The rules shall be promulgated pursuant to Chapter 119. of the	1401
Revised Code, except that rules pertaining to instant game rules	1402
shall be promulgated pursuant to section 111.15 of the Revised	1403
Code but are not subject to division (D) of that section. Subjects	1404
covered in suchthese rules shall include, but need not be limited	1405
to, the following:	1406

(1) The type of lottery to be conducted;

1407

(2) The prices of tickets in the lottery;

1408

(3) The number, nature, and value of prize awards, the	1409
manner and frequency of prize drawings, and the manner in which	1410
prizes shall be awarded to holders of winning tickets.	1411

(B) The commission shall promulgate further rules, in	1412
addition to those described in division (A) of this section,	1413
pursuant to Chapter 119. of the Revised Code under which a	1414
statewide lottery and statewide joint lottery games may be	1415
conducted. Subjects covered in these rules shall include, but not	1416
be limited to, the following:	1417

(1) The locations at which lottery tickets may be sold and	1418
the manner in which they are to be sold. SuchThese rules may	1419
authorize the sale of lottery tickets by commission personnel or	1420
other licensed individuals from traveling show wagons at the state	1421
fair, and at any other expositions the director of the commission	1422
considers acceptable. SuchThese rules shall prohibit commission	1423
personnel or other licensed individuals from soliciting from an	1424
exposition the right to sell lottery tickets at that exposition,	1425
but shall allow commission personnel or other licensed individuals	1426
to sell lottery tickets at an exposition if the exposition	1427
requests commission personnel or licensed individuals to do so.	1428
SuchThese rules may also address the accessibility of sales agent	1429
locations to commission products in accordance with the "Americans	1430
with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101	1431
et seq.	1432

(2) The manner in which lottery sales revenues are to be	1433
collected, including authorization for the director to impose	1434
penalties for failure by lottery sales agents to transfer revenues	1435
to the commission in a timely manner;	1436

(3) The amount of compensation to be paid licensed lottery	1437
sales agents;	1438

(4) The substantive criteria for the licensing of lottery	1439
sales agents consistent with section 3770.05 of the Revised Code,	1440
and procedures for revoking or suspending suchtheir licenses	1441
consistent with Chapter 119. of the Revised Code. If	1442
circumstances, such as the nonpayment of funds owed by a lottery	1443
sales agent, or other circumstances related to the public safety,	1444
convenience, or trust, require immediate action, the director may	1445
suspend a license without affording an opportunity for a prior	1446
hearing under section 119.07 of the Revised Code.	1447

(5) Special game rules to implement any agreements signed by	1448
the governor that the director enters into with other lottery	1449
jurisdictions under division (J) of section 3770.02 of the Revised	1450
Code to conduct statewide joint lottery games. The rules shall	1451
require that the entire net proceeds of those games that remain,	1452
after associated operating expenses, prize disbursements, lottery	1453
sales agent bonuses, commissions, and reimbursements, and any	1454
other expenses necessary to comply with the agreements or the	1455
rules are deducted from the gross proceeds of those games, be	1456
transferred to the lottery profits education fund under division	1457
(B) of section 3770.06 of the Revised Code.	1458

(C)(1) The state lottery commission shall meet with the	1459
director of the commission at least once each month and shall	1460
convene other meetings at the request of the chairmanchairperson	1461
or any five of the members. No action taken by the commission	1462
shall be binding unless at least five of the members present vote	1463
in favor thereofof the action. A written record shall be made of	1464
the proceedings of each meeting and shall be transmitted forthwith	1465
to the governor, the president of the senate, the senate minority	1466
leader, the speaker of the house of representatives, and the house	1467
minority leader.	1468

(2) The director shall present to the commission a report	1469
each month, showing the total revenues, prize disbursements, and	1470
operating expenses of the state lottery for the preceding month.	1471
As soon as practicable after the end of each fiscal year, the	1472
commission shall prepare and transmit to the governor and the	1473
general assembly a report of lottery revenues, prize	1474
disbursements, and operating expenses for the preceding fiscal	1475
year and any recommendations for legislation considered necessary	1476
by the commission.	1477

Sec. 3770.06.  (A) There is hereby created the state lottery	1478
gross revenue fund, which shall be in the custody of the treasurer	1479
of state but shall not be part of the state treasury. All gross	1480
revenues received from sales of lottery tickets, fines, fees, and	1481
related proceeds in connection with the statewide lottery and all	1482
gross proceeds from statewide joint lottery games shall be	1483
deposited into the fund. The treasurer of state shall invest any	1484
portion of the fund not needed for immediate use in the same	1485
manner as, and subject to all provisions of law with respect to	1486
the investment of, state funds. The treasurer of state shall	1487
disburse money from the fund on order of the director of the state	1488
lottery commission or the director's designee. AllExcept for	1489
gross proceeds from statewide joint lottery games, all revenues of	1490
the state lottery gross revenue fund that are not paid to holders	1491
of winning lottery tickets, that are not required to meet	1492
short-term prize liabilities, that are not paid to lottery sales	1493
agents in the form of bonuses, commissions, or reimbursements,	1494
and that are not paid to financial institutions to reimburse	1495
those institutions for sales agent nonsufficient funds shall be	1496
transferred to the state lottery fund, which is hereby created in	1497
the state treasury. In addition, all revenues of the state lottery	1498
gross revenue fund that represent the gross proceeds from the	1499
statewide joint lottery games and that are not paid to holders of	1500
winning lottery tickets, that are not required to meet short-term	1501
prize liabilities, that are not paid to lottery sales agents in	1502
the form of bonuses, commissions, or reimbursements, and that are	1503
not necessary to cover operating expenses associated with those	1504
games or to otherwise comply with the agreements signed by the	1505
governor that the director enters into under division (J) of	1506
section 3770.02 of the Revised Code or the rules the commission	1507
adopts under division (B)(5) of section 3770.03 of the Revised	1508
Code shall be transferred to the state lottery fund. All	1509
investment earnings of the fund shall be credited to the fund.	1510
Moneys shall be disbursed from the fund pursuant to vouchers	1511
approved by the director. Total disbursements for monetary prize	1512
awards to holders of winning lottery tickets in connection with	1513
the statewide lottery and purchases of goods and services awarded	1514
as prizes to holders of winning lottery tickets shall be of an	1515
amount equal to at least fifty per cent of the total revenue	1516
accruing from the sale of lottery tickets.	1517

(B) Pursuant to Section 6 of Article XV, Ohio Constitution,	1518
there is hereby established in the state treasury the lottery	1519
profits education fund. Whenever, in the judgment of the director	1520
of budget and management, the amount to the credit of the state	1521
lottery fund that does not represent proceeds from statewide joint	1522
lottery games is in excess of that needed to meet the maturing	1523
obligations of the commission and as working capital for its	1524
further operations, the director shall transfer the excess to the	1525
lottery profits education fund in connection with the statewide	1526
lottery. Investment earnings of the lottery profits education fund	1527
shall be credited to the fund.In addition, whenever, in the	1528
judgment of the director of budget and management, the amount to	1529
the credit of the state lottery fund that represents proceeds from	1530
statewide joint lottery games equals the entire net proceeds of	1531
those games as described in division (B)(5) of section 3770.03 of	1532
the Revised Code and the rules adopted under that division, the	1533
director shall transfer those proceeds to the lottery profits	1534
education fund. There shall also be credited to the fund any	1535
repayments of moneys loaned from the educational excellence	1536
investment fund. TheInvestment earnings of the lottery profits	1537
education fund shall be credited to the fund.	1538

The lottery profits education fund shall be used solely for	1539
the support of elementary, secondary, vocational, and special	1540
education programs as determined in appropriations made by the	1541
general assembly, or as provided in applicable bond proceedings	1542
for the payment of debt service on obligations issued to pay costs	1543
of capital facilities, including those for a system of common	1544
schools throughout the state pursuant to section 2n of Article	1545
VIII, Ohio Constitution. When determining the availability of	1546
money in the lottery profits education fund, the director of	1547
budget and management may consider all balances and estimated	1548
revenues of the fund.	1549

From the amounts that the director of budget and management	1550
transfers in any fiscal year from the state lottery fund to the	1551
lottery profits education fund, the director shall transfer the	1552
initial ten million dollars of those amounts from the lottery	1553
profits education fund to the school building program bond service	1554
fund created in division (Q) of section 3318.26 of the Revised	1555
Code to be pledged for the purpose of paying bond service charges	1556
as defined in division (C) of section 3318.21 of the Revised Code	1557
on one or more issuances of obligations, which obligations are	1558
issued to provide moneys for the school building program	1559
assistance fund created in section 3318.25 of the Revised Code.	1560

(C) There is hereby established in the state treasury the	1561
deferred prizes trust fund. With the approval of the director of	1562
budget and management, an amount sufficient to fund annuity prizes	1563
shall be transferred from the state lottery fund and credited to	1564
the trust fund. The treasurer of state shall credit all earnings	1565
arising from investments purchased under this division to the	1566
fund. Within sixty days after the end of each fiscal year, the	1567
director of budget and management shall certify the amount of	1568
investment earnings necessary to have been credited to the trust	1569
fund during the fiscal year just ending to provide for continued	1570
funding of deferred prizes. Any earnings credited in excess of	1571
this certified amount shall be transferred to the lottery profits	1572
education fund. To provide all or a part of the amounts necessary	1573
to fund deferred prizes awarded by the commission, the treasurer	1574
of state, in consultation with the commission, may invest moneys	1575
contained in the deferred prizes trust fund in obligations of the	1576
type permitted for the investment of state funds but whose	1577
maturities are thirty years or less. Investments of the deferred	1578
prizes trust fund are not subject to the provisions of division	1579
(A)(10) of section 135.143 of the Revised Code limiting to five	1580
per cent the amount of the state's total average portfolio that	1581
may be invested in debt interests and limiting to one-half of one	1582
per cent the amount that may be invested in debt interests of a	1583
single issuer.	1584

All purchases made under this division shall be effected on a	1585
delivery versus payment method and shall be in the custody of the	1586
treasurer of state.	1587

The treasurer of state may retain an investment advisor, if	1588
necessary. The commission shall pay any costs incurred by the	1589
treasurer of state in retaining an investment advisor.	1590

(D) The auditor of state shall conduct annual audits of all	1591
funds and any other audits as the auditor of state or the general	1592
assembly considers necessary. The auditor of state may examine	1593
all records, files, and other documents of the commission, and	1594
records of lottery sales agents that pertain to their activities	1595
as agents, for purposes of conducting authorized audits.	1596

The state lottery commission shall establish an internal	1597
audit program before the beginning of each fiscal year, subject to	1598
the approval of the auditor of state. At the end of each fiscal	1599
year, the commission shall prepare and submit an annual report to	1600
the auditor of state for the auditor of state's review and	1601
approval, specifying the internal audit work completed by the end	1602
of that fiscal year and reporting on compliance with the annual	1603
internal audit program. The form and content of the report shall	1604
be prescribed by the auditor of state under division (C) of	1605
section 117.20 of the Revised Code.	1606

(E) Whenever, in the judgment of the director of budget and	1607
management, an amount of net state lottery proceeds is necessary	1608
to be applied to the payment of debt service on obligations, all	1609
as defined in sections 151.01 and 151.03 of the Revised Code, the	1610
director shall transfer that amount directly from the state	1611
lottery fund or from the lottery profits education fund to the	1612
bond service fund defined in those sections. The provisions of	1613
this division are subject to any prior pledges or obligation of	1614
those amounts to the payment of bond service charges as defined in	1615
division (C) of section 3318.21 of the Revised Code, as referred	1616
to in division (B) of this section.	1617

Sec. 5111.34.  (A) There is hereby created the nursing	1618
facility reimbursement study council consisting of the following	1619
fifteenseventeen members:	1620

(1) The director of job and family services;

1621

(2) The deputy director of the office of Ohio health plans	1622
of the department of job and family services;	1623

(3) An employee of the governor's office;

1624

(4) The director of health;

1625

(5) The director of aging;

1626

(6) TwoThree members of the house of representatives, not	1627
more than two of whom are members of the same political party,	1628
appointed by the speaker of the house of representatives;	1629

(7) TwoThree members of the senate, not more than two of	1630
whom are members of the same political party, appointed by the	1631
president of the senate;	1632

(8) Two representatives of each of the following	1633
organizations, appointed by their respective governing bodies:	1634

(a) The Ohio academy of nursing homes;

1635

(b) The association of Ohio philanthropic homes and housing	1636
for the aging;	1637

(c) The Ohio health care association.

1638

Initial appointments of members described in divisions	1639
(A)(6), (7), and (8) of this section shall be made no later than	1640
ninety days after the effective date of this sectionJune 6, 2001,	1641
except that the initial appointments of the two additional members	1642
described in divisions (A)(6) and (7) of this section added by	1643
Sub. H.B. 405 of the 124th general assembly shall be made not	1644
later than ninety days after the effective date of this amendment.	1645
Vacancies in any of those appointments shall be filled in the same	1646
manner as original appointments. The members described in	1647
divisions (A)(6), (7), and (8) of this section shall serve at the	1648
pleasure of the official or governing body appointing the member.	1649
The members described in divisions (A)(1), (2), (3), (4), and (5)	1650
of this section shall serve for as long as they hold the position	1651
that qualifies them for membership on the council. The speaker of	1652
the house of representatives and the president of the senate	1653
jointly shall appoint the chairperson of the council. Members of	1654
the council shall serve without compensation.	1655

(B) The council shall review, on an ongoing basis, the	1656
system established by sections 5111.20 to 5111.32 of the Revised	1657
Code for reimbursing nursing facilities under the medical	1658
assistance program. The council shall recommend any changes it	1659
determines are necessary. The council periodically shall report	1660
its activities, findings, and recommendations to the governor, the	1661
speaker of the house of representatives, and the president of the	1662
senate.	1663

Sec. 5111.872. When the department of mental retardation and	1664
developmental disabilities allocates enrollment numbers to a	1665
county board of mental retardation and developmental disabilities	1666
for home and community-based services provided under the component	1667
of the medicaid program that the department administers under	1668
section 5111.871 of the Revised Code, the department shall	1669
consider all of the following:	1670

(A) The number of individuals with mental retardation or	1671
other developmental disability who are on a waiting list the	1672
county board establishes under division (C) of section 5126.042 of	1673
the Revised Code for those services and are given priority on the	1674
waiting list pursuant to division (D) of that section;	1675

(B) The implementation component required by division	1676
(A)(3)(4) of section 5126.054 of the Revised Code of the county	1677
board's plan approved under section 5123.046 of the Revised Code;	1678

(C) Anything else the department considers necessary to	1679
enable county boards to provide those services to individuals in	1680
accordance with the priority requirements of divisiondivisions	1681
(D) and (E) of section 5126.042 of the Revised Code.	1682

Sec. 5123.043.  (A) The director of mental retardation and	1683
developmental disabilities shall adopt rules establishing	1684
procedures for administrative resolution of complaints filed under	1685
division (B) of this section and section 5126.06 of the Revised	1686
Code. The rules shall be adopted in accordance with Chapter 119.	1687
of the Revised Code.	1688

(B) Except as provided in division (C) of this section, any	1689
person whoor county board of mental retardation and developmental	1690
disabilities that has a complaint involving any of the programs,	1691
services, policies, or administrative practices of the department	1692
of mental retardation and developmental disabilities or any of the	1693
entities under contract with the department, may file a complaint	1694
with the department. Prior to commencing a civil action regarding	1695
the complaint, a person or county board shall attempt to have the	1696
complaint resolved through the administrative resolution process	1697
established in the rules adopted under this section. After	1698
exhausting the administrative resolution process, the person or	1699
county board may commence a civil action if the complaint is not	1700
settled to the person's or county board's satisfaction.	1701

(C) An employee of the department may not file under this	1702
section a complaint related to the terms and conditions of	1703
employment for the employee.	1704

(D) This section does not apply to a conflict between a	1705
county board of mental retardation and developmental disabilities	1706
and a person or government entity that provides or seeks to	1707
provide services to an individual with mental retardation or other	1708
developmental disability. Section 5126.036 of the Revised Code	1709
applies to such a conflict.	1710

Sec. 5123.046. The department of mental retardation and	1711
developmental disabilities shall review each component of the	1712
three-calendar year plan it receives from a county board of mental	1713
retardation and developmental disabilities under section 5126.054	1714
of the Revised Code and, in consultation with the department of	1715
job and family services and office of budget and management,	1716
approve each plancomponent that includes all the information and	1717
conditions specified in that section. AThe fourth component of	1718
the plan shall be approved or disapproved not later than	1719
forty-five days after the last of the plan's components arefourth	1720
component is submitted to the department under division (B)(3) of	1721
section 5126.054 of the Revised Code. If the department approves	1722
all four components of the plan, the plan is approved. Otherwise,	1723
the plan is disapproved. If the plan is disapproved, the	1724
department shall take action against the county board under	1725
division (B) of section 5126.056 of the Revised Code.	1726

In approving plans under this section, the department shall	1727
ensure that the aggregate of all plans provide for the increased	1728
enrollment into home and community-based services during each	1729
state fiscal year of at least five hundred individuals who did not	1730
receive residential services, supported living, or home and	1731
community-based services the prior state fiscal year if the	1732
department has enough additional enrollment available for this	1733
purpose.	1734

If a county board fails to submit all the components of the	1735
plan to the department within the time required by division (B) of	1736
section 5126.054 of the Revised Code or the department disapproves	1737
a county board's plan, the department may withhold all or part of	1738
any funds the department would otherwise allocate to the county	1739
board. The department may not withhold any funds the department	1740
allocates to the county board prior to the date the last of the	1741
plan's components are due or the department disapproves the plan.	1742

The department shall establish protocols that the department	1743
shall use to determine whether a county board is complying with	1744
the programmatic and financial accountability mechanisms and	1745
achieving outcomes specified in its approved plan. If the	1746
department determines that a county board is not in compliance	1747
with the mechanisms or achieving the outcomes specified in its	1748
approved plan, the department may take action under division (G)	1749
of section 5126.055 of the Revised Code.	1750

Sec. 5123.048. (A) For state fiscal year 2002, the	1751
department of mental retardation and developmental disabilities	1752
shall assign to a county board of mental retardation and	1753
developmental disabilities the nonfederal share of medicaid	1754
expenditures for habilitation center services that a private	1755
habilitation center provides if all of the following apply:	1756

(1) The individuals who receive the services also received	1757
the services from the center pursuant to a contract the center had	1758
with the department in state fiscal year 2001;	1759

(2) The county board determined under section 5126.041 of	1760
the Revised Code that the individuals who receive the services are	1761
eligible for county board services;	1762

(3) The county board contracts with the center to provide	1763
the services after the center's contract with the department ends.	1764

(B) The department shall also make the assignment under	1765
division (A) of this section for each successive state fiscal year	1766
that the county board contracts with the private habilitation	1767
center to provide the habilitation center services to the	1768
individuals who received the services pursuant to the contract the	1769
department had with the center in state fiscal year 2001.	1770

(C) The amount the department shall assign under divisions	1771
(A) and (B) of this section shall be adequate to ensure that the	1772
habilitation center services the individuals receive are	1773
comparable in scope to the habilitation center services they	1774
received when the private habilitation center was under contract	1775
with the department. The amount that the department assigns shall	1776
not be less than the amount the department paid the private	1777
habilitation center for the individuals undereach individual who	1778
received the habilitation center services pursuant to the contract	1779
the department had with the center in fiscal year 2001. If the	1780
contract the department had with the private habilitation center	1781
in fiscal year 2001 was for less than the entire fiscal year, the	1782
amount the department shall assign shall be not less than the	1783
amount the department would have paid the center for each	1784
individual who received the services pursuant to the contract had	1785
the contract been for the entire fiscal year.	1786

(D) A county board shall use the assignment it receives	1787
under divisions (A) and (B) of this section to pay the nonfederal	1788
share of the medicaid expenditures for the habilitation center	1789
services the county board is required by division (D) of section	1790
5111.041 of the Revised Code to pay.	1791

Sec. 5123.049. The director of mental retardation and	1792
developmental disabilities shall adopt rules in accordance with	1793
Chapter 119. of the Revised Code governing the authorization and	1794
payment of home and community-based services, medicaid case	1795
management services, and habilitation center services. The rules	1796
shall provide for private providers of the services to receive one	1797
hundred per cent of the medicaid allowable payment amount and for	1798
government providers of the services to receive the federal share	1799
of the medicaid allowable payment, less the amount withheld as a	1800
fee under section 5123.0412 of the Revised Code and any amount	1801
that may be required by rules adopted under section 5123.0413 of	1802
the Revised Code to be deposited into the state MR/DD risk fund.	1803
The rules shall establish the process by which county boards of	1804
mental retardation and developmental disabilities shall certify	1805
and provide the nonfederal share of medicaid expenditures that the	1806
county board is required by division (A) of section 5126.056	1807
5126.057 of the Revised Code to pay. The process shall require a	1808
county board to certify that the county board has funding	1809
available at one time for two months costs for those expenditures.	1810
The process may permit a county board to certify that the county	1811
board has funding available at one time for more than two months	1812
costs for those expenditures.	1813

Sec. 5123.0411. The department of mental retardation and	1814
developmental disabilities may bring a mandamus action against a	1815
county board of mental retardation and developmental disabilities	1816
that fails to pay the nonfederal share of medicaid expenditures	1817
that the county board is required by division (A) of section	1818
5126.0565126.057 of the Revised Code to pay. The department may	1819
bring the mandamus action in the court of common pleas of the	1820
county served by the county board or in the Franklin county court	1821
of common pleas.	1822

Sec. 5126.01.  As used in this chapter:

1823

(A) As used in this division, "adult" means an individual	1824
who is eighteen years of age or over and not enrolled in a	1825
program or service under Chapter 3323. of the Revised Code and an	1826
individual sixteen or seventeen years of age who is eligible for	1827
adult services under rules adopted by the director of mental	1828
retardation and developmental disabilities pursuant to Chapter	1829
119. of the Revised Code.	1830

(1) "Adult services" means services provided to an adult	1831
outside the home, except when they are provided within the home	1832
according to an individual's assessed needs and identified in an	1833
individual service plan, that support learning and assistance in	1834
the area of self-care, sensory and motor development,	1835
socialization, daily living skills, communication, community	1836
living, social skills, or vocational skills.	1837

(2) "Adult services" includes all of the following:

1838

(a) Adult day habilitation services;

1839

(b) Adult day care;

1840

(c) Prevocational services;

1841

(d) Sheltered employment;

1842

(e) Educational experiences and training obtained through	1843
entities and activities that are not expressly intended for	1844
individuals with mental retardation and developmental	1845
disabilities, including trade schools, vocational or technical	1846
schools, adult education, job exploration and sampling, unpaid	1847
work experience in the community, volunteer activities, and	1848
spectator sports.	1849

(3) "Adult services" does not include community or;

1850

(f) Community employment services and supported employment	1851
services.	1852

(B)(1) "Adult day habilitation services" means adult	1853
services that do the following:	1854

(a) Provide access to and participation in typical	1855
activities and functions of community life that are desired and	1856
chosen by the general population, including such activities and	1857
functions as opportunities to experience and participate in	1858
community exploration, companionship with friends and peers,	1859
leisure activities, hobbies, maintaining family contacts,	1860
community events, and activities where individuals without	1861
disabilities are involved;	1862

(b) Provide supports or a combination of training and	1863
supports that afford an individual a wide variety of opportunities	1864
to facilitate and build relationships and social supports in the	1865
community.	1866

(2) "Adult day habilitation services" includes all of the	1867
following:	1868

(a) Personal care services needed to ensure an individual's	1869
ability to experience and participate in vocational services,	1870
educational services, community activities, and any other adult	1871
day habilitation services;	1872

(b) Skilled services provided while receiving adult day	1873
habilitation services, including such skilled services as behavior	1874
management intervention, occupational therapy, speech and language	1875
therapy, physical therapy, and nursing services;	1876

(c) Training and education in self-determination designed to	1877
help the individual do one or more of the following: develop	1878
self-advocacy skills, exercise the individual's civil rights,	1879
acquire skills that enable the individual to exercise control and	1880
responsibility over the services received, and acquire skills that	1881
enable the individual to become more independent, integrated, or	1882
productive in the community;	1883

(d) Recreational and leisure activities identified in the	1884
individual's service plan as therapeutic in nature or assistive in	1885
developing or maintaining social supports;	1886

(e) Counseling and assistance provided to obtain housing,	1887
including such counseling as identifying options for either rental	1888
or purchase, identifying financial resources, assessing needs for	1889
environmental modifications, locating housing, and planning for	1890
ongoing management and maintenance of the housing selected;	1891

(f) Transportation necessary to access adult day	1892
habilitation services;	1893

(g) Habilitation management, as described in section 5126.14	1894
of the Revised Code.	1895

(3) "Adult day habilitation services" does not include	1896
activities that are components of the provision of residential	1897
services, family support services, or supported living services.	1898

(C) "Community employment services" or "supported employment	1899
services" means job training and other services related to	1900
employment outside a sheltered workshop. "Community employment	1901
services" or "supported employment services" include all of the	1902
following:	1903

(1) Job training resulting in the attainment of competitive	1904
work, supported work in a typical work environment, or	1905
self-employment;	1906

(2) Supervised work experience through an employer paid to	1907
provide the supervised work experience;	1908

(3) Ongoing work in a competitive work environment at a wage	1909
commensurate with workers without disabilities;	1910

(4) Ongoing supervision by an employer paid to provide the	1911
supervision.	1912

(D) As used in this division, "substantial functional	1913
limitation," "developmental delay," and "established risk" have	1914
the meanings established pursuant to section 5123.011 of the	1915
Revised Code.	1916

"Developmental disability" means a severe, chronic disability	1917
that is characterized by all of the following:	1918

(1) It is attributable to a mental or physical impairment or	1919
a combination of mental and physical impairments, other than a	1920
mental or physical impairment solely caused by mental illness as	1921
defined in division (A) of section 5122.01 of the Revised Code;	1922

(2) It is manifested before age twenty-two;

1923

(3) It is likely to continue indefinitely;

1924

(4) It results in one of the following:

1925

(a) In the case of a person under age three, at least one	1926
developmental delay or an established risk;	1927

(b) In the case of a person at least age three but under age	1928
six, at least two developmental delays or an established risk;	1929

(c) In the case of a person age six or older, a substantial	1930
functional limitation in at least three of the following areas of	1931
major life activity, as appropriate for the person's age:	1932
self-care, receptive and expressive language, learning, mobility,	1933
self-direction, capacity for independent living, and, if the	1934
person is at least age sixteen, capacity for economic	1935
self-sufficiency.	1936

(5) It causes the person to need a combination and sequence	1937
of special, interdisciplinary, or other type of care, treatment,	1938
or provision of services for an extended period of time that is	1939
individually planned and coordinated for the person.	1940

(E) "Early childhood services" means a planned program of	1941
habilitation designed to meet the needs of individuals with mental	1942
retardation or other developmental disabilities who have not	1943
attained compulsory school age.	1944

(F)(1) "Environmental modifications" means the physical	1945
adaptations to an individual's home, specified in the individual's	1946
service plan, that are necessary to ensure the individual's	1947
health, safety, and welfare or that enable the individual to	1948
function with greater independence in the home, and without which	1949
the individual would require institutionalization.	1950

(2) "Environmental modifications" includes such adaptations	1951
as installation of ramps and grab-bars, widening of doorways,	1952
modification of bathroom facilities, and installation of	1953
specialized electric and plumbing systems necessary to accommodate	1954
the individual's medical equipment and supplies.	1955

(3) "Environmental modifications" does not include physical	1956
adaptations or improvements to the home that are of general	1957
utility or not of direct medical or remedial benefit to the	1958
individual, including such adaptations or improvements as	1959
carpeting, roof repair, and central air conditioning.	1960

(G) "Family support services" means the services provided	1961
under a family support services program operated under section	1962
5126.11 of the Revised Code.	1963

(H) "Habilitation" means the process by which the staff of	1964
the facility or agency assists an individual with mental	1965
retardation or other developmental disability in acquiring and	1966
maintaining those life skills that enable the individual to cope	1967
more effectively with the demands of the individual's own person	1968
and environment, and in raising the level of the individual's	1969
personal, physical, mental, social, and vocational efficiency.	1970
Habilitation includes, but is not limited to, programs of formal,	1971
structured education and training.	1972

(I) "Habilitation center services" means services provided	1973
by a habilitation center certified by the department of mental	1974
retardation and developmental disabilities under section 5123.041	1975
of the Revised Code and covered by the medicaid program pursuant	1976
to rules adopted under section 5111.041 of the Revised Code.	1977

(J) "Home and community-based services" means	1978
medicaid-funded home and community-based services provided under a	1979
medicaid component the department of mental retardation and	1980
developmental disabilities administers pursuant to section	1981
5111.871 of the Revised Code.	1982

(K) "Medicaid" has the same meaning as in section 5111.01 of	1983
the Revised Code.	1984

(L) "Medicaid case management services" means case	1985
management services provided to an individual with mental	1986
retardation or other developmental disability that the state	1987
medicaid plan requires.	1988

(M) "Mental retardation" means a mental impairment	1989
manifested during the developmental period characterized by	1990
significantly subaverage general intellectual functioning existing	1991
concurrently with deficiencies in the effectiveness or degree with	1992
which an individual meets the standards of personal independence	1993
and social responsibility expected of the individual's age and	1994
cultural group.	1995

(N) "Residential services" means services to individuals	1996
with mental retardation or other developmental disabilities to	1997
provide housing, food, clothing, habilitation, staff support, and	1998
related support services necessary for the health, safety, and	1999
welfare of the individuals and the advancement of their quality of	2000
life. "Residential services" includes program management, as	2001
described in section 5126.14 of the Revised Code.	2002

(O) "Resources" means available capital and other assets,	2003
including moneys received from the federal, state, and local	2004
governments, private grants, and donations; appropriately	2005
qualified personnel; and appropriate capital facilities and	2006
equipment.	2007

(P) "Service and support administration" means the duties	2008
performed by a service and support administrator pursuant to	2009
section 5126.15 of the Revised Code.	2010

(Q)(1) "Specialized medical, adaptive, and assistive	2011
equipment, supplies, and supports" means equipment, supplies, and	2012
supports that enable an individual to increase the ability to	2013
perform activities of daily living or to perceive, control, or	2014
communicate within the environment.	2015

(2) "Specialized medical, adaptive, and assistive equipment,	2016
supplies, and supports" includes the following:	2017

(a) Eating utensils, adaptive feeding dishes, plate guards,	2018
mylatex straps, hand splints, reaches, feeder seats, adjustable	2019
pointer sticks, interpreter services, telecommunication devices	2020
for the deaf, computerized communications boards, other	2021
communication devices, support animals, veterinary care for	2022
support animals, adaptive beds, supine boards, prone boards,	2023
wedges, sand bags, sidelayers, bolsters, adaptive electrical	2024
switches, hand-held shower heads, air conditioners, humidifiers,	2025
emergency response systems, folding shopping carts, vehicle lifts,	2026
vehicle hand controls, other adaptations of vehicles for	2027
accessibility, and repair of the equipment received.	2028

(b) Nondisposable items not covered by medicaid that are	2029
intended to assist an individual in activities of daily living or	2030
instrumental activities of daily living.	2031

(R) "Supportive home services" means a range of services to	2032
families of individuals with mental retardation or other	2033
developmental disabilities to develop and maintain increased	2034
acceptance and understanding of such persons, increased ability of	2035
family members to teach the person, better coordination between	2036
school and home, skills in performing specific therapeutic and	2037
management techniques, and ability to cope with specific	2038
situations.	2039

(S)(1) "Supported living" means services provided for as	2040
long as twenty-four hours a day to an individual with mental	2041
retardation or other developmental disability through any public	2042
or private resources, including moneys from the individual, that	2043
enhance the individual's reputation in community life and advance	2044
the individual's quality of life by doing the following:	2045

(a) Providing the support necessary to enable an individual	2046
to live in a residence of the individual's choice, with any number	2047
of individuals who are not disabled, or with not more than three	2048
individuals with mental retardation and developmental disabilities	2049
unless the individuals are related by blood or marriage;	2050

(b) Encouraging the individual's participation in the	2051
community;	2052

(c) Promoting the individual's rights and autonomy;

2053

(d) Assisting the individual in acquiring, retaining, and	2054
improving the skills and competence necessary to live successfully	2055
in the individual's residence.	2056

(2) "Supported living" includes the provision of all of the	2057
following:	2058

(a) Housing, food, clothing, habilitation, staff support,	2059
professional services, and any related support services necessary	2060
to ensure the health, safety, and welfare of the individual	2061
receiving the services;	2062

(b) A combination of life-long or extended-duration	2063
supervision, training, and other services essential to daily	2064
living, including assessment and evaluation and assistance with	2065
the cost of training materials, transportation, fees, and	2066
supplies;	2067

(c) Personal care services and homemaker services;

2068

(d) Household maintenance that does not include	2069
modifications to the physical structure of the residence;	2070

(e) Respite care services;

2071

(f) Program management, as described in section 5126.14 of	2072
the Revised Code.	2073

Sec. 5126.02.  (A) As used in this section, "relative" means	2074
a spouse, parent, parent-in-law, sibling, sibling-in-law, child,	2075
child-in-law, grandparent, aunt, or uncle.	2076

(B)(1) There is hereby created in each county a county	2077
board of mental retardation and developmental disabilities	2078
consisting of seven members, five of whom shall be appointed by	2079
the board of county commissioners of the county, and two of whom	2080
shall be appointed by the probate judge of the county. Each	2081
member shall be a resident of the county. The membership of the	2082
board shall, as nearly as possible, reflect the composition of the	2083
population of the county.	2084

All board members shall be persons interested and	2085
knowledgeable in the field of mental retardation and other allied	2086
fields. All board members shall be citizens of the United States.	2087
Of the members appointed by the board of county commissioners, at	2088
least two shall be relatives by blood or marriage of persons	2089
eligible for and currently receiving services provided by the	2090
county board of mental retardation and developmental disabilities,	2091
and, whenever possible, one shall be a relative of a person	2092
eligible for and currently receiving adult services, and the other	2093
shall be a relative of a person eligible for and currently	2094
receivingearly intervention services or services for pre-school	2095
or school-age children. Of the two members appointed by the	2096
probate judge, at least one shall be a relative by blood or	2097
marriage of a person eligible for or currently receiving	2098
residential services in a public or private residential facility	2099
subject to regulation or licensure by the director of mental	2100
retardation and developmental disabilities under sections 5123.19	2101
and 5123.20 of the Revised Codeor supported living.	2102

Both the board of county commissioners and the probate judge	2103
shall appoint under this section, to the maximum extent possible,	2104
members who fulfill any applicable requirements of this section	2105
for appointment and who also have professional training and	2106
experience in business management, finance, law, health care	2107
practice, personnel administration, or government service.	2108

(2) All appointments shall be for terms of four years. The	2109
membership of a person appointed as a relative of a recipient of	2110
services shall not be terminated because the services are no	2111
longer received.	2112

Members may be reappointed, except as provided in division	2113
(A)(B)(3) of this section and section 5126.022 of the Revised	2114
Code. Prior to making a reappointment, the appointing authority	2115
shall ascertain, through written communication with the board,	2116
that the member being considered for reappointment meets the	2117
requirements of this section and section 5126.022 of the Revised	2118
Code.	2119

(3) A member who has served during each of twothree	2120
consecutive terms shall not be reappointed for a subsequent term	2121
until one yeartwo years after ceasing to be a member of the	2122
board, except that a member who has served for sixten years or	2123
less within twothree consecutive terms may be reappointed for a	2124
subsequent term before becoming ineligible for reappointment for	2125
one yeartwo years.	2126

(4) Within sixty days after a vacancy occurs, it shall be	2127
filled by the appointing authority for the unexpired term. Any	2128
member appointed to fill a vacancy occurring prior to the	2129
expiration of the term for which the member's predecessor was	2130
appointed shall hold office for the remainder of that term.	2131
Appointment other than appointment to fill a vacancy shall be made	2132
no later than the last day of November of each year, and the term	2133
of office shall commence on the date of the stated annual	2134
organizational meeting in January.	2135

(5) Board members shall serve without compensation, but	2136
shall be reimbursed for necessary expenses incurred in the conduct	2137
of board business, including those incurred within the county of	2138
residence.	2139

(B)(C) Each year each board member shall attend at least one	2140
in-service training session provided by or approved by the	2141
department of mental retardation and developmental disabilities.	2142
These training sessions shall not be considered regularly	2143
scheduled meetings of the board.	2144

(C)(D) A county board of mental retardation and	2145
developmental disabilities shall be operated as a separate	2146
administrative and service entity. The board's functions shall	2147
not be combined with the functions of any other entity of county	2148
government.	2149

Sec. 5126.021.  As used in this section, "immediate family"	2150
means parents, brothers, sisters, spouses, sons, daughters,	2151
mothers-in-law, fathers-in-law, brothers-in-law, sisters-in-law,	2152
sons-in-law, and daughters-in-law.	2153

(A) The following individuals shall not serve as members of	2154
county boards of mental retardation and developmental	2155
disabilities:	2156

(1) Elected public officials, except for township trustees,	2157
township clerks, and those excluded from the definition of public	2158
official or employee in division (B) of section 102.01 of the	2159
Revised Code;	2160

(2) Members of the immediate family of another board member;

2161

(3) Board employees and members of the immediate family of	2162
board employees;	2163

(4) Former board employees within one calendar year of the	2164
termination of employment with the board on which the former	2165
employee would serve.	2166

(B) A person may not serve as a member of a county board of	2167
mental retardation and developmental disabilities when either the	2168
person or a member of the person's immediate family is a board	2169
member of a contract agency of that county board unless there is	2170
no conflict of interest. In no circumstance shall a member of a	2171
county board vote on any matter before the board concerning a	2172
contract agency of which the member or a member of the member's	2173
immediate family is also a board member or an employee. All	2174
questions relating to the existence of a conflict of interest	2175
shall be submitted to the local prosecuting attorney and the Ohio	2176
ethics commission for resolution.	2177

(C) No employee of an agency contracting with a county board	2178
of mental retardation and developmental disabilities or member of	2179
the immediate family of such an employee shall serve as a board	2180
member or an employee of the county board except that a county	2181
board may, pursuant to a resolution adopted by the board, employ a	2182
member of the immediate family of an employee of an agency	2183
contracting with the board.	2184

(D) No person shall serve as a member or employee of a	2185
county board of mental retardation and developmental disabilities	2186
if a member of the person's immediate family serves as a county	2187
commissioner of the county served by the board unless the person	2188
was a member or employee prior to October 31, 1980.	2189

(E) A county board of mental retardation and developmental	2190
disabilities shall not contract with an agency whose board	2191
includes a county commissioner of the county served by the county	2192
board or an employee of the same county board.	2193

Sec. 5126.033.  (A) A county board of mental retardation and	2194
developmental disabilities shall not enter into a direct services	2195
contract unless the contract is limited either to the actual	2196
amount of the expenses or to a reasonable and allowable amount	2197
projected by the board.	2198

(B) A county board shall not enter into a direct services	2199
contract that would result in payment to a board member, former	2200
board member, employee, former employee, or member of the	2201
immediate family of a board member, former board member, employee,	2202
or former employee if the person who would receive services under	2203
the contract stands to receive any preferential treatment or any	2204
unfair advantage over other eligible persons.	2205

(C) A county board shall not enter into a direct services	2206
contract for services provided in accordance with section 5126.11	2207
or sections 5126.40 to 5126.46 of the Revised Code under which an	2208
individual, agency, or other entity will employ a management	2209
employee, professional employee, or service employee, as defined	2210
in section 5126.20 of the Revised Code, who is also an employee of	2211
that board unless all of the following conditions are met:	2212

(1) The employee is not in a capacity to influence the award	2213
of the contract.	2214

(2) The employee has not attempted in any manner to secure	2215
the contract on behalf of the individual, agency, or other entity.	2216

(3) The employee is not in management level two or three	2217
according to rules adopted by the director of mental retardation	2218
and developmental disabilities.	2219

(4) The employee doesis not hold any administrative or	2220
supervisory position in the employ ofemployed by the board, did	2221
not hold such a position during the period when the contract was	2222
is developed,as an administrator or supervisor responsible for	2223
approving or supervising services to be provided under the	2224
contract and agrees not to take such a position while the contract	2225
is in effect, regardless of whether the position is related to the	2226
services provided under the contract.	2227

(4)(5) The employee has not taken any actions that create	2228
the need for the services to be provided under the contract.	2229

(5)(6) The individual, agency, or other entity seeks the	2230
services of the employee because of the employee's expertise and	2231
familiarity with the care and condition of one or more eligible	2232
persons and other individuals with such expertise and familiarity	2233
are unavailable, or an eligible person has requested to have the	2234
services provided by that employee.	2235

The superintendent of the county board shall notify the	2236
employee and the individual, agency, or other entity that seeks	2237
the employee's services of the ethics council's determination	2238
under section 5126.032 of the Revised Code regarding the contract.	2239
The council's determination shall be binding on all parties.	2240

The employee who is the subject of the contract shall inform	2241
the superintendent of the county board of any employment the	2242
employee has outside the county board that is with any individual,	2243
agency, or other entity that has a contract with the county board.	2244

Sec. 5126.035. (A) As used in this section:

2245

(1) "Provider" means a person or government entity that	2246
provides services to an individual with mental retardation or	2247
other developmental disability pursuant to a service contract.	2248

(2) "Service contract" means a contract between a county	2249
board of mental retardation and developmental disabilities and a	2250
provider under which the provider is to provide services to an	2251
individual with mental retardation or other developmental	2252
disability.	2253

(B) Each service contract that a county board of mental	2254
retardation and developmental disabilities enters into with a	2255
provider shall do all of the following:	2256

(1) Comply with rules adopted under division (E) of this	2257
section;	2258

(2) If the provider is to provide home and community-based	2259
services, medicaid case management services, or habilitation	2260
center services, comply with all applicable statewide medicaid	2261
requirements;	2262

(3) Include a general operating agreement component and an	2263
individual service needs addendum.	2264

(C) The general operating agreement component shall include	2265
all of the following:	2266

(1) The roles and responsibilities of the county board	2267
regarding services for individuals with mental retardation or	2268
other developmental disability who reside in the county the county	2269
board serves;	2270

(2) The roles and responsibilities of the provider as	2271
specified in the individual service needs addendum;	2272

(3) Procedures for the county board to monitor the	2273
provider's services;	2274

(4) Procedures for the county board to evaluate the quality	2275
of care and cost effectiveness of the provider's services;	2276

(5) Procedures for payment of eligible claims;

2277

(6) If the provider is to provide home and community-based	2278
services, medicaid case management services, or habilitation	2279
center services, both of the following:	2280

(a) Procedures for reimbursement that conform to the	2281
statewide reimbursement process and the county board's plan	2282
submitted under section 5126.054 of the Revised Code;	2283

(b) Procedures that ensure that the county board pays the	2284
nonfederal share of the medicaid expenditures that the county	2285
board is required by division (A) of section 5126.0565126.057 of	2286
the Revised Code to pay.	2287

(7) Procedures for the county board to perform service	2288
utilization reviews and the implementation of required corrective	2289
actions;	2290

(8) Procedures for the provider to submit claims for payment	2291
for a service no later than three hundred thirty days after the	2292
date the service is provided;	2293

(9) Procedures for rejecting claims for payment that are	2294
submitted after the time required by division (B)(9) of this	2295
section;	2296

(10) Procedures for developing, modifying, and executing	2297
initial and subsequent service plans. The procedures shall	2298
provide for the provider's participation.	2299

(11) Procedures for affording individuals due process	2300
protections;	2301

(12) General staffing, training, and certification	2302
requirements that are consistent with state requirements and	2303
compensation arrangements that are necessary to attract, train,	2304
and retain competent personnel to deliver the services pursuant to	2305
the individual service needs addendum;	2306

(13) Methods to be used to document services provided and	2307
procedures for submitting reports the county board requires;	2308

(14) Methods for authorizing and documenting within	2309
seventy-two hours changes to the individual service needs	2310
addendum. The methods shall allow for changes to be initially	2311
authorized verbally and subsequently in writing.	2312

(15) Procedures for modifying the individual service needs	2313
addendum in accordance with changes to the recipient's	2314
individualized service plan;	2315

(16) Procedures for terminating the individual service needs	2316
addendum within thirty days of a request made by the recipient;	2317

(17) A requirement that all parties to the contract accept	2318
the contract's terms and conditions;	2319

(18) A designated contact person and the method of	2320
contacting the designated person to respond to medical or	2321
behavioral problems and allegations of major unusual incidents or	2322
unusual incidents;	2323

(19) Procedures for ensuring the health and welfare of the	2324
recipient;	2325

(20) Procedures for ensuring fiscal accountability and the	2326
collection and reporting of programmatic data;	2327

(21) Procedures for implementing the mediation and	2328
arbitration process under section 5126.036 of the Revised Code;	2329

(22) Procedures for amending or terminating the contract,	2330
including as necessary to make the general operating agreement	2331
component consistent with any changes made to the individual	2332
service needs addendum;	2333

(23) Anything else allowable under federal and state law	2334
that the county board and provider agree to.	2335

(D) The individual service needs addendum shall be	2336
consistent with the general operating agreement component and	2337
include all of the following:	2338

(1) The name of the individual with mental retardation or	2339
other developmental disability who is to receive the services from	2340
the provider and any information about the recipient that the	2341
provider needs to be able to provide the services;	2342

(2) A clear and complete description of the services that	2343
the recipient is to receive as determined using statewide	2344
assessment tools;	2345

(3) A copy of the recipient's assessment and individualized	2346
service plan;	2347

(4) A clear and complete description of the provider's	2348
responsibilities to the recipient and county board in providing	2349
appropriate services in a coordinated manner with other providers	2350
and in a manner that contributes to and ensures the recipient's	2351
health, safety, and welfare.	2352

(E) The director of mental retardation and developmental	2353
disabilities shall adopt rules in accordance with Chapter 119. of	2354
the Revised Code governing service contracts. A service contract	2355
does not negate the requirement that a provider of home and	2356
community-based services, medicaid case management services, or	2357
habilitation center services have a medicaid provider agreement	2358
with the department of job and family services.	2359

Sec. 5126.036. (A) As used in this section:

2360

(1) "Aggrieved party" means any of the following:

2361

(a) The party to a service contract that is aggrieved by an	2362
action the other party has taken or not taken under the service	2363
contract;	2364

(b) A person or government entity aggrieved by the refusal	2365
of a county board of mental retardation and developmental	2366
disabilities to enter into a service contract with the person or	2367
government entity;	2368

(c) A person or government entity aggrieved by termination	2369
by a county board of mental retardation and development	2370
disabilities of a service contract between the person or	2371
government entity and the county board.	2372

(2) "Mediator/arbitrator" means either of the following:

2373

(a) An attorney at law licensed to practice law in this	2374
state who is mutually selected by the parties under division	2375
(B)(4) of this section to conduct mediation and arbitration;	2376

(b) A retired judge who is selected under division (B)(4) of	2377
this section to conduct mediation and arbitration.	2378

(3) "Other party" means any of the following:

2379

(a) The party to a service contract that has taken or not	2380
taken an action under the service contract that causes the	2381
aggrieved party to be aggrieved;	2382

(b) A county board of mental retardation and developmental	2383
disabilities that refuses to enter into a service contract with a	2384
person or government entity;	2385

(c) A county board of mental retardation and developmental	2386
disabilities that terminates a service contract.	2387

(4) "Parties" mean either of the following:

2388

(a) A county board of mental retardation and developmental	2389
disabilities and a provider that have or had a service contract	2390
with each other;	2391

(b) A person or government entity that seeks a service	2392
contract with a county board of mental retardation and	2393
developmental disabilities and the county board that refuses to	2394
enter into the service contract with the person or government	2395
entity.	2396

(5) "Provider" means a person or government entity that	2397
provides services to an individual with mental retardation or	2398
other developmental disability pursuant to a service contract.	2399

(6) "Service contract" means a contract between a county	2400
board of mental retardation and developmental disabilities and a	2401
provider under which the provider is to provide services to an	2402
individual with mental retardation or other developmental	2403
disability.	2404

(B) An aggrieved party that seeks to require the other party	2405
to take or cease an action under a service contract that causes	2406
the aggrieved party to be aggrieved, a person or government	2407
entity aggrieved by the refusal of a county board of mental	2408
retardation and developmental disabilities to enter into a service	2409
contract with the person or government entity, or a person or	2410
government entity aggrieved by a county board's termination of a	2411
service contract between the person or government entity and the	2412
county board and the other party shall follow the following	2413
mediation and arbitration procedures:	2414

(1) No later than thirty days after first notifying the	2415
other party that the aggrieved party is aggrieved, the aggrieved	2416
party shall file a written notice of mediation and arbitration	2417
with the department of mental retardation and developmental	2418
disabilities and provide a copy of the written notice to the other	2419
party. The written notice shall include an explanation of why the	2420
aggrieved party is aggrieved. The department of mental	2421
retardation and developmental disabilities shall provide the	2422
department of job and family services a copy of the notice.	2423

(2) In the case of parties that have a current service	2424
contract with each other and unless otherwise agreed to by both	2425
parties, the parties shall continue to operate under the contract	2426
in the manner they have been operating until the mediation and	2427
arbitration process, including an appeal under division (B)(9) of	2428
this section, if any, is completed.	2429

(3) During the thirty days following the date the aggrieved	2430
party files the written notice of mediation and arbitration under	2431
division (B)(1) of this section, the parties may attempt to	2432
resolve the conflict informally. If the parties are able to	2433
resolve the conflict informally within this time, the aggrieved	2434
party shall rescind the written notice of mediation and	2435
arbitration filed under division (B)(1) of this section.	2436

(4) No later than thirty days after the date the aggrieved	2437
party files the written notice of mediation and arbitration under	2438
division (B)(1) of this section, the parties shall mutually select	2439
an attorney at law licensed to practice law in this state to	2440
conduct the mediation and arbitration and schedule the first	2441
meeting of the mediation unless the parties informally resolve the	2442
conflict under division (B)(3) of this section. If the parties	2443
fail to select an attorney to conduct the mediation and	2444
arbitration within the required time, the parties shall request	2445
that the chief justice of the supreme court of Ohio provide the	2446
parties a list of five retired judges who are willing to perform	2447
the mediation and arbitration duties. The chief justice shall	2448
create such a list and provide it to the parties. To select the	2449
retired judge to conduct the mediation and arbitration, the	2450
parties shall take turns, beginning with the aggrieved party,	2451
striking retired judges from the list. The retired judge	2452
remaining on the list after both parties have each stricken two	2453
retired judges from the list shall perform the mediation and	2454
arbitration duties, including scheduling the first meeting of	2455
mediation if the parties are unable to agree on a date for the	2456
first meeting.	2457

(5) A stenographic record or tape recording and transcript	2458
of each mediation and arbitration meeting shall be maintained as	2459
part of the mediation and arbitration's official records. The	2460
parties shall share the cost of the mediation and arbitration,	2461
including the cost of the mediator/arbitrator's services but	2462
excluding the cost of representation.	2463

(6) The first mediation meeting shall be held no later than	2464
sixty days after the date the aggrieved party files the written	2465
notice of mediation and arbitration under division (B)(1) of this	2466
section unless the parties informally resolve the conflict under	2467
division (B)(3) of this section or the parties mutually agree to	2468
hold the first meeting at a later time. The mediation shall be	2469
conducted in the manner the parties mutually agree. If the	2470
parties are unable to agree on how the mediation is to be	2471
conducted, the mediator/arbitrator selected under division (B)(4)	2472
of this section shall determine how it is to be conducted. The	2473
rules of evidence may be used. The mediator/arbitrator shall	2474
attempt to resolve the conflict through the mediation process. The	2475
mediator/arbitrator's resolution of the conflict may be applied	2476
retroactively.	2477

(7) If the conflict is not resolved through the mediation	2478
process, the mediator/arbitrator shall arbitrate the conflict.	2479
The parties shall present evidence to the mediator/arbitrator in	2480
the manner the mediator/arbitrator requires. The	2481
mediator/arbitrator shall render a written recommendation within	2482
thirty days of the conclusion of the last arbitration meeting	2483
based on the service contract, applicable law, and the	2484
preponderance of the evidence presented during the arbitration.	2485
The mediator/arbitrator's recommendation may be applied	2486
retroactively. If the parties agree, the mediator/arbitrator may	2487
continue to attempt to resolve the conflict through mediation	2488
while the mediator/arbitrator arbitrates the conflict.	2489

(8) No later than thirty days after the mediator/arbitrator	2490
renders a recommendation in an arbitration, the	2491
mediator/arbitrator shall provide the parties with a written	2492
recommendation and forward a copy of the written recommendation,	2493
transcripts from each arbitration meeting, and a copy of all	2494
evidence presented to the mediator/arbitrator during the	2495
arbitration to the departments of mental retardation and	2496
developmental disabilities and job and family services.	2497

(9) No later than thirty days after the department of mental	2498
retardation and developmental disabilities receives the	2499
mediator/arbitrator's recommendation and the materials required by	2500
division (B)(8) of this section, the department shall adopt,	2501
reject, or modify the mediator/arbitrator's recommendation	2502
consistent with the mediator/arbitrator's findings of fact and	2503
conclusions of law or remand any portion of the recommendation to	2504
the mediator/arbitrator for further findings on a specific factual	2505
or legal issue. The mediator/arbitrator shall complete the	2506
further findings and provide the parties and the department with a	2507
written response to the remand within sixty days of the date the	2508
mediator/arbitrator receives the remand. On receipt of the	2509
mediator/arbitrator's response to the remand, the department,	2510
within thirty days, unless the parties agree otherwise, shall	2511
adopt, reject, or modify the mediator/arbitrator's response. The	2512
department's actions regarding the mediator/arbitrator's	2513
recommendation and response are a final adjudication order subject	2514
to appeal to the court of common pleas of Franklin county under	2515
section 119.12 of the Revised Code, except that the court shall	2516
consider only whether the conclusions of law the department adopts	2517
are in accordance with the law.	2518

(10) If the department of job and family services, in	2519
consultation with the department of mental retardation and	2520
developmental disabilities, determines no later than thirty days	2521
following the date the department of mental retardation and	2522
developmental disabilities receives the mediator/arbitrator's	2523
recommendation and the materials required by division (B)(8) of	2524
this section, or, if the recommendation is remanded under division	2525
(B)(9) of this section, thirty days following the date the	2526
department receives the response to the remand, that any aspect of	2527
the conflict between the parties affects the medicaid program, the	2528
department of mental retardation and developmental disabilities	2529
shall take all actions under division (B)(9) of this section in	2530
consultation with the department of job and family services.	2531

(C) If the department of mental retardation and	2532
developmental disabilities is aware of a conflict between a county	2533
board of mental retardation and developmental disabilities and a	2534
person or government entity that provides or seeks to provide	2535
services to an individual with mental retardation or other	2536
developmental disability to which the mediation and arbitration	2537
procedures established by this section may be applied and that the	2538
aggrieved party has not filed a written notice of mediation and	2539
arbitration within the time required by division (B)(1) of this	2540
section, the department may require that the parties implement the	2541
mediation and arbitration procedures.	2542

(D) Each service contract shall provide for the parties to	2543
follow the mediation and arbitration procedures established by	2544
this section if a party takes or does not take an action under the	2545
service contract that causes the aggrieved party to be aggrieved	2546
or if the provider is aggrieved by the county board's termination	2547
of the service contract.	2548

Sec. 5126.042.  (A) As used in this section:

2549

(1) "Emergency" means any situation that creates for an	2550
individual with mental retardation or developmental disabilities a	2551
risk of substantial self-harm or substantial harm to others if	2552
action is not taken within thirty days. An "emergency" may	2553
include one or more of the following situations:	2554

(a) Loss of present residence for any reason, including	2555
legal action;	2556

(b) Loss of present caretaker for any reason, including	2557
serious illness of the caretaker, change in the caretaker's	2558
status, or inability of the caretaker to perform effectively for	2559
the individual;	2560

(c) Abuse, neglect, or exploitation of the individual;

2561

(d) Health and safety conditions that pose a serious risk to	2562
the individual or others of immediate harm or death;	2563

(e) Change in the emotional or physical condition of the	2564
individual that necessitates substantial accommodation that cannot	2565
be reasonably provided by the individual's existing caretaker.	2566

(2) "Medicaid" has the same meaning as in section 5111.01 of	2567
the Revised Code.	2568

(B) If a county board of mental retardation and	2569
developmental disabilities determines that available resources are	2570
not sufficient to meet the needs of all individuals who request	2571
programs and services and may be offered the programs and	2572
services, it shall establish waiting lists for services. The	2573
board may establish priorities for making placements on its	2574
waiting lists according to an individual's emergency status and	2575
shall establish priorities in accordance with division (D) of this	2576
section.	2577

The individuals who may be placed on a waiting list include	2578
individuals with a need for services on an emergency basis and	2579
individuals who have requested services for which resources are	2580
not available.	2581

Except for an individual who is to receive priority for	2582
services pursuant to division (D)(3) of this section, an	2583
individual who currently receives a service but would like to	2584
change to another service shall not be placed on a waiting list	2585
but shall be placed on a service substitution list. The board	2586
shall work with the individual, service providers, and all	2587
appropriate entities to facilitate the change in service as	2588
expeditiously as possible. The board may establish priorities for	2589
making placements on its service substitution lists according to	2590
an individual's emergency status.	2591

In addition to maintaining waiting lists and service	2592
substitution lists, a board shall maintain a long-term service	2593
planning registry for individuals who wish to record their	2594
intention to request in the future a service they are not	2595
currently receiving. The purpose of the registry is to enable the	2596
board to document requests and to plan appropriately. The board	2597
may not place an individual on the registry who meets the	2598
conditions for receipt of services on an emergency basis.	2599

(C) A county board shall establish a separate waiting list	2600
for each of the following categories of services, and may	2601
establish separate waiting lists within the waiting lists:	2602

(1) Early childhood services;

2603

(2) Educational programs for preschool and school age	2604
children;	2605

(3) Adult services;

2606

(4) serviceService and support administration;

2607

(5) Residential services and supported living;

2608

(6) Transportation services;

2609

(7) Other services determined necessary and appropriate for	2610
persons with mental retardation or a developmental disability	2611
according to their individual habilitation or service plans;	2612

(8) Family support services provided under section 5126.11	2613
of the Revised Code.	2614

(D) Except as provided in division (E)(G) of this section, a	2615
county board shall do, as priorities, all of the following in	2616
accordance with the assessment component, approved under section	2617
5123.046 of the Revised Code, of the county board's plan approved	2618
developed under section 5123.0465126.054 of the Revised Code as	2619
priorities:	2620

(1) For the purpose of obtaining additional federal medicaid	2621
funds for home and community-based services, medicaid case	2622
management services, and habilitation center services, do both of	2623
the following:	2624

(a) Give an individual who is eligible for home and	2625
community-based services and meets both of the following	2626
requirements priority over any other individual on a waiting list	2627
established under division (C) of this section for home and	2628
community-based services that include supported living,	2629
residential services, or family support services:	2630

(i) Is twenty-two years of age or older;

2631

(ii) Receives supported living or family support services.

2632

(b) Give an individual who is eligible for home and	2633
community-based services and meets both of the following	2634
requirements priority over any other individual on a waiting list	2635
established under division (C) of this section for home and	2636
community-based services that include adult services:	2637

(i) Resides in the individual's own home or the home of the	2638
individual's family and will continue to reside in that home after	2639
enrollment in home and community-based services;	2640

(ii) Receives adult services from the county board.

2641

(2) As federal medicaid funds become available pursuant to	2642
division (D)(1) of this section, give an individual who is	2643
eligible for home and community-based services and meets any of	2644
the following requirements priority for such services over any	2645
other individual on a waiting list established under division (C)	2646
of this section other than an individual given priority under	2647
division (D)(1) of this section:	2648

(a) Does not receive residential services or supported	2649
living, either needs services in the individual's current living	2650
arrangement or will need services in a new living arrangement, and	2651
has a primary caregiver who is sixty years of age or older;	2652

(b) Is less than twenty-two years of age, does not receive	2653
residential services or supported living, resides in the home of	2654
the individual's family, and has at least one of the following	2655
service needs that are unusual in scope or intensity:	2656

(i) Severe behavior problems for which a behavior support	2657
plan is needed;	2658

(ii) An emotional disorder for which anti-psychotic	2659
medication is needed;	2660

(iii) A medical condition that leaves the individual	2661
dependent on life-support medical technology;	2662

(iv) A condition affecting multiple body systems for which a	2663
combination of specialized medical, psychological, educational, or	2664
habilitation services are needed;	2665

(v) A condition the county board determines to be comparable	2666
in severity to any condition described in division (D)(1)	2667
(2)(b)(i) to (iv) of this section and places the individual at	2668
significant risk of institutionalization.	2669

(c) Is twenty-two years of age or older, does not receive	2670
residential services or supported living, and is determined by the	2671
county board to have intensive needs for residentialhome and	2672
community-based services on an in-home or out-of-home basis.	2673

(3) In fiscal years 2002 and 2003, give an individual who is	2674
eligible for home and community-based services, resides in an	2675
intermediate care facility for the mentally retarded or nursing	2676
facility, chooses to move to another setting with the help of home	2677
and community-based services, and has been determined by the	2678
department of mental retardation and developmental disabilities to	2679
be capable of residing in the other setting, priority over any	2680
other individual on a waiting list established under division (C)	2681
of this section for home and community-based services who does not	2682
meet these criteria. The department of mental retardation and	2683
developmental disabilities shall identify the individuals to	2684
receive priority under division (D)(3) of this section, assess the	2685
needs of the individuals, and notify the county boards that are to	2686
provide the individuals priority under division (D)(3) of this	2687
section of the individuals identified by the department and the	2688
individuals' assessed needs.	2689

(E)(1) If an individual with mental retardation or other	2690
developmental disability who has priority for home and	2691
community-based services under division (D)(2)(a) or (c) of this	2692
section chooses, instead, to apply for admission to an	2693
intermediate care facility for the mentally retarded or nursing	2694
facility, is eligible to have medicaid pay for the services of	2695
such a facility, and is admitted to such a facility, a county	2696
board may provide, except as provided in division (G) of this	2697
section, another individual with mental retardation or other	2698
developmental disability priority over any other individual on a	2699
waiting list established under division (C) of this section for	2700
home and community-based services if the individual meets all of	2701
the following requirements:	2702

(a) At the time the individual with priority for home and	2703
community-based services applies for admission to an intermediate	2704
care facility for the mentally retarded or nursing facility, is a	2705
resident of that facility.	2706

(b) Has intensive needs and is eligible for home and	2707
community-based services;	2708

(c) Is not given priority for the services pursuant to	2709
division (D)(3) of this section.	2710

(2) An individual may receive priority for home and	2711
community-based services pursuant to division (E)(1) of this	2712
section regardless of whether the individual admitted to an	2713
intermediate care facility for the mentally retarded or nursing	2714
facility resides in the same or different county. If the	2715
individuals reside in different counties, the county boards	2716
serving the counties in which the individuals reside shall enter	2717
into a collaborative agreement with each other as necessary to	2718
implement this division. One or more other county boards may also	2719
enter into the collaborative agreement with the two county boards.	2720

(F) If two or more individuals on a waiting list established	2721
under division (C) of this section for home and community-based	2722
services have priority for the services pursuant to division	2723
(D)(1), (D)(2), or (E) of this section, a county board may use,	2724
until December 31, 2003, criteria specified in rules adopted under	2725
division (K)(2) of this section in determining the order in which	2726
the individuals with priority will be offered the services.	2727
Otherwise, the county board shall offer the home and	2728
community-based services to such individuals in the order they are	2729
placed on the waiting list.	2730

(G)(1) No individual may receive priority for services	2731
pursuant to division (D) or (E) of this section over an individual	2732
placed on a waiting list established under division (C) of this	2733
section on an emergency status.	2734

(2) No more than twofour hundred individuals in the state	2735
may receive priority for services during state fiscal yearsthe	2736
2002 and 2003 biennium pursuant to division (D)(2)(b) of this	2737
section.	2738

(3) No more than a total of seventy-five individuals in the	2739
state may receive priority for services during state fiscal years	2740
2002 and 2003 pursuant to division (D)(3) of this section.	2741

(F)(H) Prior to establishing any waiting list under this	2742
section, a county board shall develop and implement a policy for	2743
waiting lists that complies with this section and rules that the	2744
department of mental retardation and developmental disabilities	2745
shall adopt in accordance with Chapter 119. of the Revised Code.	2746
The department's rules shall include procedures to be followed to	2747
ensure that the due process rights of individuals placed on	2748
waiting lists are not violatedadopted under division (K) of this	2749
section.	2750

Prior to placing an individual on a waiting list, the county	2751
board shall assess the service needs of the individual in	2752
accordance with all applicable state and federal laws. The county	2753
board shall place the individual on the appropriate waiting list	2754
and may place the individual on more than one waiting list. The	2755
county board shall notify the individual of the individual's	2756
placement and position on each waiting list on which the	2757
individual is placed.	2758

At least annually, the county board shall reassess the	2759
service needs of each individual on a waiting list. If it	2760
determines that an individual no longer needs a program or	2761
service, the county board shall remove the individual from the	2762
waiting list. If it determines that an individual needs a program	2763
or service other than the one for which the individual is on the	2764
waiting list, the county board shall provide the program or	2765
service to the individual or place the individual on a waiting	2766
list for the program or service in accordance with the board's	2767
policy for waiting lists.	2768

When a program or service for which there is a waiting list	2769
becomes available, the county board shall reassess the service	2770
needs of the individual next scheduled on the waiting list to	2771
receive that program or service. If the reassessment demonstrates	2772
that the individual continues to need the program or service, the	2773
board shall offer the program or service to the individual. If it	2774
determines that an individual no longer needs a program or	2775
service, the county board shall remove the individual from the	2776
waiting list. If it determines that an individual needs a program	2777
or service other than the one for which the individual is on the	2778
waiting list, the county board shall provide the program or	2779
service to the individual or place the individual on a waiting	2780
list for the program or service in accordance with the board's	2781
policy for waiting lists. The county board shall notify the	2782
individual of the individual's placement and position on the	2783
waiting list on which the individual is placed.	2784

(G)(I) A child subject to a determination made pursuant to	2785
section 121.38 of the Revised Code who requires the home and	2786
community-based services provided through the medicaid component	2787
that the department of mental retardation and developmental	2788
disabilities administers under section 5111.871 of the Revised	2789
Code shall receive services through that medicaid component. For	2790
all other services, a child subject to a determination made	2791
pursuant to section 121.38 of the Revised Code shall be treated as	2792
an emergency by the county boards and shall not be subject to a	2793
waiting list.	2794

(H)(J) Not later than the fifteenth day of March of each	2795
even-numbered year, each county board shall prepare and submit to	2796
the director of mental retardation and developmental disabilities	2797
its recommendations for the funding of services for individuals	2798
with mental retardation and developmental disabilities and its	2799
proposals for reducing the waiting lists for services.	2800

(I)(K)(1) The department of mental retardation and	2801
developmental disabilities shall adopt rules in accordance with	2802
Chapter 119. of the Revised Code governing waiting lists	2803
established under this section. The rules shall include procedures	2804
to be followed to ensure that the due process rights of	2805
individuals placed on waiting lists are not violated.	2806

(2) As part of the rules adopted under this division, the	2807
department shall adopt, not later than December 31, 2001, rules	2808
establishing criteria a county board may use under division (F) of	2809
this section in determining the order in which individuals with	2810
priority for home and community-based services will be offered the	2811
services. The rules shall also specify conditions under which a	2812
county board, when there is no individual with priority for home	2813
and community-based services pursuant to division (D)(1), (D)(2),	2814
or (E) of this section available and appropriate for the services,	2815
may offer the services to an individual on a waiting list for the	2816
services but not given such priority for the services. The rules	2817
adopted under division (K)(2) of this section shall cease to have	2818
effect December 31, 2003.	2819

(L) The following shall take precedence over the applicable	2820
provisions of this section:	2821

(1) Medicaid rules and regulations;

2822

(2) Any specific requirements that may be contained within a	2823
medicaid state plan amendment or waiver program that a county	2824
board has authority to administer or with respect to which it has	2825
authority to provide services, programs, or supports.	2826

Sec. 5126.046. (A) Each county board of mental retardation	2827
and developmental disabilities that has medicaid local	2828
administrative authority under division (A) of section 5126.055 of	2829
the Revised Code for habilitation, vocational, or community	2830
employment services provided as part of home and community-based	2831
services shall create a list of all persons and government	2832
entities eligible to provide such habilitation, vocational, or	2833
community employment services. If the county board chooses and is	2834
eligible to provide such habilitation, vocational, or community	2835
employment services, the county board shall include itself on the	2836
list. The county board shall make the list available to each	2837
individual with mental retardation or other developmental	2838
disability who resides in the county and is eligible for such	2839
habilitation, vocational, or community employment services. The	2840
county board shall also make the list available to such	2841
individuals' families.	2842

An individual with mental retardation or other developmental	2843
disability who is eligible for habilitation, vocational, or	2844
community employment services may choose the provider of the	2845
services.	2846

If aA county board that has medicaid local administrative	2847
authority under division (A) of section 5126.055 of the Revised	2848
Code for habilitation, vocational, and community employment	2849
services provided as part of home and community-based services,	2850
the county board shall pay the nonfederal share of the	2851
habilitation, vocational, and community employment services when	2852
required by section 5126.0565126.057 of the Revised Code. The	2853
department of mental retardation and developmental disabilities	2854
shall pay the nonfederal share of such habilitation, vocational,	2855
and community employment services when required by section	2856
5123.047 of the Revised Code.	2857

(B) Each month, the department of mental retardation and	2858
developmental disabilities shall create a list of all persons and	2859
government entities eligible to provide residential services and	2860
supported living. The department shall include on the list all	2861
residential facilities licensed under section 5123.19 of the	2862
Revised Code and all supported living providers certified under	2863
section 5126.431 of the Revised Code. The department shall	2864
distribute the monthly lists to county boards that have local	2865
administrative authority under division (A) of section 5126.055 of	2866
the Revised Code for residential services and supported living	2867
provided as part of home and community-based services. A county	2868
board that receives a list shall make it available to each	2869
individual with mental retardation or other developmental	2870
disability who resides in the county and is eligible for such	2871
residential services or supported living. The county board shall	2872
also make the list available to the families of those individuals.	2873

An individual who is eligible for residential services or	2874
supported living may choose the provider of the residential	2875
services or supported living.	2876

If aA county board that has medicaid local administrative	2877
authority under division (A) of section 5126.055 of the Revised	2878
Code for residential services and supported living provided as	2879
part of home and community-based services, the county board shall	2880
pay the nonfederal share of the residential services and supported	2881
living when required by section 5126.0565126.057 of the Revised	2882
Code. The department shall pay the nonfederal share of the	2883
residential services and supported living when required by section	2884
5123.047 of the Revised Code.	2885

(C) If a county board that has medicaid local administrative	2886
authority under division (A) of section 5126.055 of the Revised	2887
Code for home and community-based services violates the right	2888
established by this section of an individual to choose a provider	2889
that is qualified and willing to provide services to the	2890
individual, the individual shall receive timely notice that the	2891
individual may request a hearing under section 5101.35 of the	2892
Revised Code.	2893

(D) The departments of mental retardation and developmental	2894
disabilities and job and family services shall adopt rules in	2895
accordance with Chapter 119. of the Revised Code governing the	2896
implementation of this section. The rules shall include	2897
procedures for individuals to choose their service providers. The	2898
rules shall not be limited by a provider selection system	2899
established under section 5126.42 of the Revised Code, including	2900
any pool of providers created pursuant to a provider selection	2901
system.	2902

Sec. 5126.05.  (A) Subject to the rules established by the	2903
director of mental retardation and developmental disabilities	2904
pursuant to Chapter 119. of the Revised Code for programs and	2905
services offered pursuant to this chapter, and subject to the	2906
rules established by the state board of education pursuant to	2907
Chapter 119. of the Revised Code for programs and services offered	2908
pursuant to Chapter 3323. of the Revised Code, the county board of	2909
mental retardation and developmental disabilities shall:	2910

(1) Administer and operate facilities, programs, and	2911
services as provided by this chapter and Chapter 3323. of the	2912
Revised Code and establish policies for their administration and	2913
operation;	2914

(2) Coordinate, monitor, and evaluate existing services and	2915
facilities available to individuals with mental retardation and	2916
developmental disabilities;	2917

(3) Provide early childhood services, supportive home	2918
services, and adult services, according to the plan and priorities	2919
developed under section 5126.04 of the Revised Code;	2920

(4) Provide or contract for special education services	2921
pursuant to Chapters 3317. and 3323. of the Revised Code and	2922
ensure that related services, as defined in section 3323.01 of the	2923
Revised Code, are available according to the plan and priorities	2924
developed under section 5126.04 of the Revised Code;	2925

(5) Adopt a budget, authorize expenditures for the purposes	2926
specified in this chapter and do so in accordance with section	2927
319.16 of the Revised Code, approve attendance of board members	2928
and employees at professional meetings and approve expenditures	2929
for attendance, and exercise such powers and duties as are	2930
prescribed by the director;	2931

(6) Submit annual reports of its work and expenditures,	2932
pursuant to sections 3323.09 and 5126.12 of the Revised Code, to	2933
the director, the superintendent of public instruction, and the	2934
board of county commissioners at the close of the fiscal year and	2935
at such other times as may reasonably be requested;	2936

(7) Authorize all positions of employment, establish	2937
compensation, including but not limited to salary schedules and	2938
fringe benefits for all board employees, approve contracts of	2939
employment for management employees that are for a term of more	2940
than one year, employ legal counsel under section 309.10 of the	2941
Revised Code, and contract for employee benefits;	2942

(8) Provide service and support administration in	2943
accordance with section 5126.0465126.15 of the Revised Code;	2944

(9) Certify respite care homes pursuant to rules adopted	2945
under section 5123.171 of the Revised Code by the director of	2946
mental retardation and developmental disabilities.	2947

(B) To the extent that rules adopted under this section	2948
apply to the identification and placement of handicapped children	2949
under Chapter 3323. of the Revised Code, they shall be consistent	2950
with the standards and procedures established under sections	2951
3323.03 to 3323.05 of the Revised Code.	2952

(C) Any county board may enter into contracts with other	2953
such boards and with public or private, nonprofit, or	2954
profit-making agencies or organizations of the same or another	2955
county, to provide the facilities, programs, and services	2956
authorized or required, upon such terms as may be agreeable, and	2957
in accordance with this chapter and Chapter 3323. of the Revised	2958
Code and rules adopted thereunder and in accordance with sections	2959
307.86 and 5126.071 of the Revised Code.	2960

(D) A county board may combine transportation for children	2961
and adults enrolled in programs and services offered under section	2962
5126.12 with transportation for children enrolled in classes	2963
funded under section 3317.20 or units approved under section	2964
3317.05 of the Revised Code.	2965

(E) A county board may purchase all necessary insurance	2966
policies, may purchase equipment and supplies through the	2967
department of administrative services or from other sources, and	2968
may enter into agreements with public agencies or nonprofit	2969
organizations for cooperative purchasing arrangements.	2970

(F) A county board may receive by gift, grant, devise, or	2971
bequest any moneys, lands, or property for the benefit of the	2972
purposes for which the board is established and hold, apply, and	2973
dispose of the moneys, lands, and property according to the terms	2974
of the gift, grant, devise, or bequest. All money received by	2975
gift, grant, bequest, or disposition of lands or property received	2976
by gift, grant, devise, or bequest shall be deposited in the	2977
county treasury to the credit of such board and shall be available	2978
for use by the board for purposes determined or stated by the	2979
donor or grantor, but may not be used for personal expenses of the	2980
board members. Any interest or earnings accruing from such gift,	2981
grant, devise, or bequest shall be treated in the same manner and	2982
subject to the same provisions as such gift, grant, devise, or	2983
bequest.	2984

(G) The board of county commissioners shall levy taxes and	2985
make appropriations sufficient to enable the county board of	2986
mental retardation and developmental disabilities to perform its	2987
functions and duties, and may utilize any available local, state,	2988
and federal funds for such purpose.	2989

Sec. 5126.054.  (A) Each county board of mental retardation	2990
and developmental disabilities shall, by resolution, develop a	2991
three-calendar year plan that includes all of the following four	2992
components:	2993

(1) An assessment component that includes all of the	2994
following:	2995

(a) The number of individuals with mental retardation or	2996
other developmental disability residing in the county who need the	2997
level of care provided by an intermediate care facility for the	2998
mentally retarded, may seek home and community-based services, are	2999
given priority for the services pursuant to division (D) of	3000
section 5126.042 of the Revised Code; the service needs of those	3001
individuals; and the projected annualized cost for services;	3002

(b) The source of funds available to the county board to pay	3003
the nonfederal share of medicaid expenditures that the county	3004
board is required by division (A) of section 5126.0565126.057 of	3005
the Revised Code to pay;	3006

(c) Any other applicable information or conditions that the	3007
department of mental retardation and developmental disabilities	3008
requires as a condition of approving the plancomponent under	3009
section 5123.046 of the Revised Code.	3010

(2) A component that provides for the recruitment, training,	3011
and retention of existing and new direct care staff necessary to	3012
implement services included in individualized service plans,	3013
including behavior management services and health management	3014
services such as delegated nursing and other habilitation center	3015
services, and protect the health and welfare of individuals	3016
receiving services included in the individual's individualized	3017
service plan by complying with safeguards for unusual and major	3018
unusual incidents, day-to-day program management, and other	3019
requirements the department shall identify. A county board shall	3020
develop this component in collaboration with providers of	3021
medicaid-funded services with which the county board contracts. A	3022
county board shall include all of the following in the component:	3023

(a) The source and amount of funds available for the	3024
component;	3025

(b) A plan and timeline for implementing the component with	3026
the medicaid providers under contract with the county board;	3027

(c) The mechanisms the county board shall use to ensure the	3028
financial and program accountability of the medicaid provider's	3029
implementation of the component.	3030

(3) A preliminary implementation component that specifies the	3031
number of individuals to be provided, during the first year that	3032
the plan is in effect, home and community-based services pursuant	3033
to the priority given to them under divisions (D)(1) and (2) of	3034
section 5126.042 of the Revised Code and the types of home and	3035
community-based services the individuals are to receive;	3036

(4) A component that provides for the implementation of	3037
habilitation center services, medicaid case management services,	3038
and home and community-based services for individuals who begin to	3039
receive the services on or after the date the plan is approved	3040
under section 5123.046 of the Revised Code. A county board shall	3041
include all of the following in the component:	3042

(a) If the department of mental retardation and	3043
developmental disabilities or department of job and family	3044
services requires, an agreement to pay the nonfederal share of	3045
medicaid expenditures that the county board is required by	3046
division (A) of section 5126.0565126.057 of the Revised Code to	3047
pay;	3048

(b) How the services are to be phased in over the period the	3049
plan covers, including how the county board will serve individuals	3050
on a waiting list established under division (C) of section	3051
5126.042 who are given priority status under division (D)(1) of	3052
that section;	3053

(c) Any agreement or commitment regarding the county board's	3054
funding of home and community-based services that the county board	3055
has with the department at the time the county board develops the	3056
component;	3057

(d) Assurances adequate to the department that the county	3058
board will comply with all of the following requirements:	3059

(i) To provide the types of home and community-based services	3060
specified in the preliminary implementation component required by	3061
division (A)(3) of this section to at least the number of	3062
individuals specified in that component;	3063

(ii) To use any additional funds the county board receives	3064
for the services to improve the county board's resource	3065
capabilities for supporting such services available in the county	3066
at the time the component is developed and to expand the services	3067
to accommodate the unmet need for those services in the county;	3068

(ii)(iii) To employ a business manager who is either a new	3069
employee who has earned at least a bachelor's degree in business	3070
administration or a current employee who has the equivalent	3071
experience of a bachelor's degree in business administration. If	3072
the county board will employ a new employee, the county board	3073
shall include in the component a timeline for employing the	3074
employee.	3075

(iii)(iv) To employ or contract with a medicaid services	3076
manager who is either a new employee who has earned at least a	3077
bachelor's degree or a current employee who has the equivalent	3078
experience of a bachelor's degree. If the county board will	3079
employ a new employee, the county board shall include in the	3080
component a timeline for employing the employee. Two or three	3081
county boards that have a combined total enrollment in county	3082
board services not exceeding one thousand individuals as	3083
determined pursuant to certifications made under division (B) of	3084
section 5126.12 of the Revised Code may satisfy this requirement	3085
by sharing the services of a medicaid services manager or using	3086
the services of a medicaid services manager employed by or under	3087
contract with a regional council that the county boards establish	3088
under section 5126.13 of the Revised Code.	3089

(e) An agreement to comply with the method, developed by	3090
rules adopted under section 5123.0413 of the Revised Code, of	3091
paying for extraordinary costs, including extraordinary costs for	3092
services to individuals with mental retardation or other	3093
developmental disability, and ensuring the availability of	3094
adequate funds in the event a county property tax levy for	3095
services for individuals with mental retardation or other	3096
developmental disability fails;	3097

(f) Programmatic and financial accountability measures and	3098
projected outcomes expected from the implementation of the plan;	3099

(g) Any other applicable information or conditions that the	3100
department requires as a condition of approving the plancomponent	3101
under section 5123.046 of the Revised Code.	3102

(B) For the purpose of obtaining the department's approval	3103
under section 5123.046 of the Revised Code of the plan the county	3104
board develops under division (A) of this section, a county board	3105
shall do bothall of the following:	3106

(1) Submit the components required by divisions (A)(1) and	3107
(2) of this section to the department not later than August 1,	3108
2001;	3109

(2) Submit the component required by division (A)(3) of this	3110
section to the department not later than January 31, 2002;	3111

(3) Submit the component required by division (A)(3)(4) of	3112
this section to the department not later than NovemberJuly 1,	3113
20012002.	3114

(C) A county board whose plan developed under division (A)	3115
of this section is approved by the department under section	3116
5123.046 of the Revised Code shall update and renew the plan in	3117
accordance with a schedule the department shall develop.	3118

Sec. 5126.055.  (A) Except as provided in division (G) of	3119
this section 5126.056 of the Revised Code, a county board of	3120
mental retardation and developmental disabilities with an approved	3121
plan under section 5123.046 of the Revised Code has medicaid local	3122
administrative authority to, and shall, do all of the following	3123
for an individual with mental retardation or other developmental	3124
disability who resides in the county that the county board serves	3125
and seeks or receives home and community-based services:	3126

(1) Perform assessments and evaluations of the individual.	3127
As part of the assessment and evaluation process, the county board	3128
shall do all of the following:	3129

(a) Make a recommendation to the department of mental	3130
retardation and developmental disabilities on whether the	3131
department should approve or deny the individual's application for	3132
the services, including on the basis of whether the individual	3133
needs the level of care an intermediate care facility for the	3134
mentally retarded provides;	3135

(b) If the individual's application is denied because of the	3136
county board's recommendation and the individual requests a	3137
hearing under section 5101.35 of the Revised Code, present, with	3138
the department of mental retardation and developmental	3139
disabilities or department of job and family services, whichever	3140
denies the application, the reasons for the recommendation and	3141
denial at the hearing;	3142

(c) If the individual's application is approved, recommend	3143
to the departments of mental retardation and developmental	3144
disabilities and job and family services the services that should	3145
be included in the individual's individualized service plan and,	3146
if either department approves, reduces, denies, or terminates a	3147
service included in the individual's individualized service plan	3148
under section 5111.871 of the Revised Code because of the county	3149
board's recommendation, present, with the department that made the	3150
approval, reduction, denial, or termination, the reasons for the	3151
recommendation and approval, reduction, denial, or termination at	3152
a hearing under section 5101.35 of the Revised Code.	3153

(2) If the individual has been identified by the department	3154
of mental retardation and developmental disabilities as an	3155
individual to receive priority for home and community-based	3156
services pursuant to division (D)(3) of section 5126.042 of the	3157
Revised Code, assist the department in expediting the transfer of	3158
the individual from an intermediate care facility for the mentally	3159
retarded or nursing facility to the home and community-based	3160
services;	3161

(3) In accordance with the rules adopted under section	3162
5126.046 of the Revised Code, perform the county board's duties	3163
under that section regarding assisting the individual's right to	3164
choose a qualified and willing provider of the services and, at a	3165
hearing under section 5101.35 of the Revised Code, present	3166
evidence of the process for appropriate assistance in choosing	3167
providers;	3168

(4) Unless the county board provides the services under	3169
division (A)(5) of this section, contract with the person or	3170
government entity the individual chooses in accordance with	3171
section 5126.046 of the Revised Code to provide the services if	3172
the person or government entity is qualified and agrees to provide	3173
the services. The contract shall contain all the provisions	3174
required by section 5126.0575126.035 of the Revised Code and	3175
require the provider to agree to furnish, in accordance with the	3176
provider's medicaid provider agreement and for the authorized	3177
reimbursement rate, the services the individual requires.	3178

(5) If the county board is certified under section 5123.045	3179
of the Revised Code to provide the services and agrees to provide	3180
the services to the individual and the individual chooses the	3181
county board to provide the services, furnish, in accordance with	3182
the county board's medicaid provider agreement and for the	3183
authorized reimbursement rate, the services the individual	3184
requires;	3185

(6) Monitor the services provided to the individual and	3186
ensure the individual's health, safety, and welfare. The	3187
monitoring shall include quality assurance activities. If the	3188
county board provides the services, the department of mental	3189
retardation and developmental disabilities shall also monitor the	3190
services.	3191

(7) Develop, with the individual and the provider of the	3192
individual's services, an effective individualized service plan	3193
that includes coordination of services, recommend that the	3194
departments of mental retardation and developmental disabilities	3195
and job and family services approve the plan, and implement the	3196
plan unless either department disapproves it;	3197

(8) Have an investigative agent conduct investigations under	3198
section 5126.313 of the Revised Code that concern the individual;	3199

(9) Have a service and support administrator perform the	3200
duties under division (B)(9) of section 5126.15 of the Revised	3201
Code that concern the individual.	3202

(B) Except as provided in division (G) of this section	3203
5126.056 of the Revised Code, a county board with an approved plan	3204
under section 5123.046 of the Revised Code has medicaid local	3205
administrative authority to, and shall, do all of the following	3206
for an individual with mental retardation or other developmental	3207
disability who resides in the county that the county board serves	3208
and seeks or receives medicaid case management services or	3209
habilitation center services, other than habilitation center	3210
services for which a school district is required by division (E)	3211
of section 5111.041 of the Revised Code to pay the nonfederal	3212
share:	3213

(1) Perform assessments and evaluations of the individual	3214
for the purpose of recommending to the departments of mental	3215
retardation and developmental disabilities and job and family	3216
services the services that should be included in the individual's	3217
individualized service plan;	3218

(2) If the department of mental retardation and	3219
developmental disabilities or department of job and family	3220
services approves, reduces, denies, or terminates a service	3221
included in the individual's individualized service plan under	3222
section 5111.041 or 5111.042 of the Revised Code because of the	3223
county board's recommendation under division (B)(1) of this	3224
section, present, with the department that made the approval,	3225
reduction, denial, or termination, the reasons for the	3226
recommendation and approval, reduction, denial, or termination at	3227
a hearing under section 5101.35 of the Revised Code and inform the	3228
individual that the individual may file a complaint with the	3229
county board under section 5126.06 of the Revised Code at the same	3230
time the individual pursues an appeal under section 5101.35 of the	3231
Revised Code;	3232

(3) In accordance with rules the departments of mental	3233
retardation and developmental disabilities and job and family	3234
services shall adopt in accordance with Chapter 119. of the	3235
Revised Code governing the process for individuals to choose	3236
providers of medicaid case management services and habilitation	3237
center services, assist the individual in choosing the provider of	3238
the services. The rules shall provide for both of the following:	3239

(a) The county board providing the individual up-to-date	3240
information about qualified providers that the department of	3241
mental retardation and developmental disabilities shall make	3242
available to the county board;	3243

(b) If the individual chooses a provider who is qualified	3244
and willing to provide the services but is denied that provider,	3245
the individual receiving timely notice that the individual may	3246
request a hearing under section 5101.35 of the Revised Code and,	3247
at the hearing, the county board presenting evidence of the	3248
process for appropriate assistance in choosing providers.	3249

(4) Unless the county board provides the services under	3250
division (B)(5) of this section, contract with the person or	3251
government entity that the individual chooses in accordance with	3252
the rules adopted under division (B)(3) of this section to provide	3253
the services if the person or government entity is qualified and	3254
agrees to provide the services. The contract shall contain all	3255
the provisions required by section 5126.0575126.035 of the	3256
Revised Code and require the provider to agree to furnish, in	3257
accordance with the provider's medicaid provider agreement and for	3258
the authorized reimbursement rate, the services the individual	3259
requires.	3260

(5) If the county board is certified under section 5123.041	3261
of the Revised Code to provide the services and agrees to provide	3262
the services to the individual and the individual chooses the	3263
county board to provide the services, furnish, in accordance with	3264
the county board's medicaid provider agreement and for the	3265
authorized reimbursement rate, the services the individual	3266
requires;	3267

(6) Monitor the services provided to the individual. The	3268
monitoring shall include quality assurance activities. If the	3269
county board provides the services, the department of mental	3270
retardation and developmental disabilities shall also monitor the	3271
services.	3272

(7) Develop with the individual and the provider of the	3273
individual's services, and with the approval of the departments of	3274
mental retardation and developmental disabilities and job and	3275
family services, implement an effective plan for coordinating the	3276
services in accordance with the individual's approved	3277
individualized service plan;	3278

(8) Have an investigative agent conduct investigations under	3279
section 5126.313 of the Revised Code that concern the individual;	3280

(9) Have a service and support administrator perform the	3281
duties under division (B)(9) of section 5126.15 of the Revised	3282
Code that concern the individual.	3283

(C) A county board shall perform its medicaid local	3284
administrative authority under this section in accordance with all	3285
of the following:	3286

(1) The county board's plan that the department of mental	3287
retardation and developmental disabilities approves under section	3288
5123.046 of the Revised Code;	3289

(2) All applicable federal and state laws;

3290

(3) All applicable policies of the departments of mental	3291
retardation and developmental disabilities and job and family	3292
services and the United States department of health and human	3293
services;	3294

(4) The department of job and family services' supervision	3295
under its authority under section 5111.01 of the Revised Code to	3296
act as the single state medicaid agency;	3297

(5) The department of mental retardation and developmental	3298
disabilities' oversight.	3299

(D) The departments of mental retardation and developmental	3300
disabilities and job and family services shall communicate with	3301
and provide training to county boards regarding medicaid local	3302
administrative authority granted by this section. The	3303
communication and training shall include issues regarding audit	3304
protocols and other standards established by the United States	3305
department of health and human services that the departments	3306
determine appropriate for communication and training. County	3307
boards shall participate in the training. The departments shall	3308
assess the county board's compliance against uniform standards	3309
that the departments shall establish.	3310

(E) A county board may not delegate its medicaid local	3311
administrative authority granted under this section but may	3312
contract with a person or government entity, including a council	3313
of governments, for assistance with its medicaid local	3314
administrative authority. A county board that enters into such a	3315
contract shall notify the director of mental retardation and	3316
developmental disabilities. The notice shall include the tasks	3317
and responsibilities that the contract gives to the person or	3318
government entity. The person or government entity shall comply	3319
in full with all requirements to which the county board is subject	3320
regarding the person or government entity's tasks and	3321
responsibilities under the contract. The county board remains	3322
ultimately responsible for the tasks and responsibilities.	3323

(F) A county board that has medicaid local administrative	3324
authority under this section shall, through the departments of	3325
mental retardation and developmental disabilities and job and	3326
family services, reply to, and cooperate in arranging compliance	3327
with, a program or fiscal audit or program violation exception	3328
that a state or federal audit or review discovers. The department	3329
of job and family services shall timely notify the department of	3330
mental retardation and developmental disabilities and the county	3331
board of any adverse findings. After receiving the notice, the	3332
county board, in conjunction with the department of mental	3333
retardation and developmental disabilities, shall cooperate fully	3334
with the department of job and family services and timely prepare	3335
and send to the department a written plan of correction or	3336
response to the adverse findings. The county board is liable for	3337
any adverse findings that result from an action it takes or fails	3338
to take in its implementation of medicaid local administrative	3339
authority.	3340

(G)(1) If the department of mental retardation and	3341
developmental disabilities or department of job and family	3342
services determines that a county board's implementation of its	3343
medicaid local administrative authority under this section is	3344
deficient, the department that makes the determination shall	3345
require that county board do the following:	3346

(a)(1) If the deficiency affects the health, safety, or	3347
welfare of an individual with mental retardation or other	3348
developmental disability, correct the deficiency within	3349
twenty-four hours;	3350

(b)(2) If the deficiency does not affect the health, safety,	3351
or welfare of an individual with mental retardation or other	3352
developmental disability, receive technical assistance from the	3353
department or submit a plan of correction to the department that	3354
is acceptable to the department within sixty days and correct the	3355
deficiency within the time required by the plan of correction.	3356

(2) If the county board fails to correct a deficiency within	3357
the time required by division (G)(1) of this section to the	3358
satisfaction of the department, or submit an acceptable plan of	3359
correction within the time required by division (G)(1)(b) of this	3360
section, the department shall issue an order terminating the	3361
county board's medicaid local administrative authority over all or	3362
part of home and community-based services, medicaid managed care	3363
services, habilitation center services, all or part of two of	3364
those services, or all or part of all three of those services. The	3365
department shall provide a copy of the order to the board of	3366
county commissioners, probate judge, county auditor, and president	3367
and superintendent of the county board. The department shall	3368
specify in the order the medicaid local administrative authority	3369
that the department is terminating, the reason for the	3370
termination, and the county board's option and responsibilities	3371
under this division.	3372

A county board whose medicaid local administrative authority	3373
is terminated may, no later than thirty days after the department	3374
issues the termination order, recommend to the department that	3375
another county board that has not had any of its medicaid local	3376
administrative authority terminated or another entity the	3377
department approves administer the services for which the county	3378
board's medicaid local administrative authority is terminated. The	3379
department may contract with the other county board or entity to	3380
administer the services. If the department enters into such a	3381
contract, the county board shall adopt a resolution giving the	3382
other county board or entity full medicaid local administrative	3383
authority over the services that the other county board or entity	3384
is to administer. The other county board or entity shall be known	3385
as the contracting authority.	3386

If the county board does not submit a recommendation to the	3387
department regarding a contracting authority within the required	3388
time or the department rejects the county board's recommendation,	3389
the department shall appoint an administrative receiver to	3390
administer the services for which the county board's medicaid	3391
local administrative authority is terminated. To the extent	3392
necessary for the department to appoint an administrative	3393
authority, the department may utilize employees of the department,	3394
management personnel from another county board, or other	3395
individuals who are not employed by or affiliated with in any	3396
manner a person or government entity that provides home and	3397
community-based services, medicaid case management services, or	3398
habilitation center services pursuant to a contract with any	3399
county board. The administrative receiver shall assume full	3400
administrative responsibility for the county board's services for	3401
which the county board's medicaid local administrative authority	3402
is terminated.	3403

The contracting authority or administrative receiver shall	3404
develop and submit to the department a plan of correction to	3405
remediate the problems that caused the department to issue the	3406
termination order. If, after reviewing the plan, the department	3407
approves it, the contracting authority or administrative receiver	3408
shall implement the plan.	3409

The county board shall transfer control of state and federal	3410
funds it is otherwise eligible to receive for the services for	3411
which the county board's medicaid local administrative authority	3412
is terminated and funds the county board may use under division	3413
(B) of section 5126.056 of the Revised Code to pay the nonfederal	3414
share of the services that the county board is required by	3415
division (A) of that section to pay. The county board shall	3416
transfer control of the funds to the contracting authority or	3417
administrative receiver administering the services. The amount	3418
the county board shall transfer shall be the amount necessary for	3419
the contracting authority or administrative receiver to fulfill	3420
its duties in administering the services, including its duties to	3421
pay its personnel for time worked, travel, and related matters. If	3422
the county board fails to make the transfer, the department may	3423
withhold the state and federal funds from the county board and	3424
bring a mandamus action against the county board in the court of	3425
common pleas of the county served by the county board or in the	3426
Franklin county court of common pleas. The mandamus action may not	3427
require that the county board transfer any funds other than the	3428
funds the county board is required by division (G)(2) of this	3429
section to transfer.	3430

The contracting authority or administrative receiver has the	3431
right to authorize the payment of bills in the same manner that	3432
the county board may authorize payment of bills under this chapter	3433
and section 319.16 of the Revised Code.	3434

Sec. 5126.056. (A) The department of mental retardation and	3435
developmental disabilities shall take action under division (B) of	3436
this section against a county board of mental retardation and	3437
developmental disabilities if any of the following are the case:	3438

(1) The county board fails to submit to the department all	3439
the components of its three-year plan required by section 5126.054	3440
of the Revised Code within the time required by division (B) of	3441
that section.	3442

(2) The department disapproves the county board's	3443
three-year plan under section 5123.046 of the Revised Code.	3444

(3) The county board fails, as required by division (C) of	3445
section 5126.054 of the Revised Code, to update and renew its	3446
three-year plan in accordance with a schedule the department	3447
develops under that section.	3448

(4) The county board fails to implement its initial or	3449
renewed three-year plan approved by the department.	3450

(5) The county board fails to correct a deficiency within	3451
the time required by division (G) of section 5126.055 of the	3452
Revised Code to the satisfaction of the department.	3453

(6) The county board fails to submit an acceptable plan of	3454
correction to the department within the time required by division	3455
(G)(2) of section 5126.055 of the Revised Code.	3456

(B) If required by division (A) of this section to take	3457
action against a county board, the department shall issue an order	3458
terminating the county board's medicaid local administrative	3459
authority over all or part of home and community-based services,	3460
medicaid case management services, habilitation center services,	3461
all or part of two of those services, or all or part of all three	3462
of those services. The department shall provide a copy of the	3463
order to the board of county commissioners, probate judge, county	3464
auditor, and president and superintendent of the county board. The	3465
department shall specify in the order the medicaid local	3466
administrative authority that the department is terminating, the	3467
reason for the termination, and the county board's option and	3468
responsibilities under this division.	3469

A county board whose medicaid local administrative authority	3470
is terminated may, not later than thirty days after the department	3471
issues the termination order, recommend to the department that	3472
another county board that has not had any of its medicaid local	3473
administrative authority terminated or another entity the	3474
department approves administer the services for which the county	3475
board's medicaid local administrative authority is terminated. The	3476
department may contract with the other county board or entity to	3477
administer the services. If the department enters into such a	3478
contract, the county board shall adopt a resolution giving the	3479
other county board or entity full medicaid local administrative	3480
authority over the services that the other county board or entity	3481
is to administer. The other county board or entity shall be known	3482
as the contracting authority.	3483

If the department rejects the county board's recommendation	3484
regarding a contracting authority, the county board may appeal the	3485
rejection under section 5123.043 of the Revised Code.	3486

If the county board does not submit a recommendation to the	3487
department regarding a contracting authority within the required	3488
time or the department rejects the county board's recommendation	3489
and the rejection is upheld pursuant to an appeal, if any, under	3490
section 5123.043 of the Revised Code, the department shall appoint	3491
an administrative receiver to administer the services for which	3492
the county board's medicaid local administrative authority is	3493
terminated. To the extent necessary for the department to appoint	3494
an administrative receiver, the department may utilize employees	3495
of the department, management personnel from another county board,	3496
or other individuals who are not employed by or affiliated with in	3497
any manner a person that provides home and community-based	3498
services, medicaid case management services, or habilitation	3499
center services pursuant to a contract with any county board. The	3500
administrative receiver shall assume full administrative	3501
responsibility for the county board's services for which the	3502
county board's medicaid local administrative authority is	3503
terminated.	3504

The contracting authority or administrative receiver shall	3505
develop and submit to the department a plan of correction to	3506
remediate the problems that caused the department to issue the	3507
termination order. If, after reviewing the plan, the department	3508
approves it, the contracting authority or administrative receiver	3509
shall implement the plan.	3510

The county board shall transfer control of state and federal	3511
funds it is otherwise eligible to receive for the services for	3512
which the county board's medicaid local administrative authority	3513
is terminated and funds the county board may use under division	3514
(B) of section 5126.057 of the Revised Code to pay the nonfederal	3515
share of the services that the county board is required by	3516
division (A) of that section to pay. The county board shall	3517
transfer control of the funds to the contracting authority or	3518
administrative receiver administering the services. The amount	3519
the county board shall transfer shall be the amount necessary for	3520
the contracting authority or administrative receiver to fulfill	3521
its duties in administering the services, including its duties to	3522
pay its personnel for time worked, travel, and related matters. If	3523
the county board fails to make the transfer, the department may	3524
withhold the state and federal funds from the county board and	3525
bring a mandamus action against the county board in the court of	3526
common pleas of the county served by the county board or in the	3527
Franklin county court of common pleas. The mandamus action may	3528
not require that the county board transfer any funds other than	3529
the funds the county board is required by division (B) of this	3530
section to transfer.	3531

The contracting authority or administrative receiver has the	3532
right to authorize the payment of bills in the same manner that	3533
the county board may authorize payment of bills under this chapter	3534
and section 319.16 of the Revised Code.	3535

Sec. 5126.056.        Sec. 5126.057. (A) A county board of mental	3536
retardation and developmental disabilities that has medicaid local	3537
administrative authority under division (A) of section 5126.055 of	3538
the Revised Code for home and community-based services shall pay	3539
the nonfederal share of medicaid expenditures for such services	3540
provided to an individual with mental retardation or other	3541
developmental disability who the county board determines under	3542
section 5126.041 of the Revised Code is eligible for county board	3543
services unless division (C)(2) of section 5123.047 of the Revised	3544
Code requires the department of mental retardation and	3545
developmental disabilities to pay the nonfederal share.	3546

A county board that has medicaid local administrative	3547
authority under division (B) of section 5126.055 of the Revised	3548
Code for medicaid case management services shall pay the	3549
nonfederal share of medicaid expenditures for such services	3550
provided to an individual with mental retardation or other	3551
developmental disability who the county board determines under	3552
section 5126.041 of the Revised Code is eligible for county board	3553
services unless division (B)(2) of section 5123.047 of the Revised	3554
Code requires the department of mental retardation and	3555
developmental disabilities to pay the nonfederal share.	3556

A county board shall pay the nonfederal share of medicaid	3557
expenditures for habilitation center services when required to do	3558
so by division (D) of section 5111.041 of the Revised Code.	3559

(B) A county board may use the following funds to pay the	3560
nonfederal share of the services that the county board is required	3561
by division (A) of this section to pay:	3562

(1) To the extent consistent with the levy that generated	3563
the taxes, the following taxes:	3564

(a) Taxes levied pursuant to division (L) of section 5705.19	3565
of the Revised Code and section 5705.222 of the Revised Code;	3566

(b) Taxes levied under section 5705.191 of the Revised Code	3567
that the board of county commissioners allocates to the county	3568
board to pay the nonfederal share of the services.	3569

(2) Funds that the department of mental retardation and	3570
developmental disabilities distributes to the county board under	3571
sections 5126.11, 5126.12, 5126.15, 5126.18, and 5126.44 of the	3572
Revised Code;	3573

(3) Funds that the department allocates to the county board	3574
for habilitation center services provided under section 5111.041	3575
of the Revised Code;	3576

(4) Earned federal revenue funds the county board receives	3577
for medicaid services the county board provides pursuant to the	3578
county board's valid medicaid provider agreement.	3579

(C) If by December 31, 2001, the United States secretary of	3580
health and human services approves at least five hundred more	3581
slots for home and community-based services for calendar year 2002	3582
than were available for calendar year 2001, each county board	3583
shall provide, by the last day of calendar year 2001, assurances	3584
to the department of mental retardation and developmental	3585
disabilities that the county board will have for calendar year	3586
2002 at least one-third of the value of one-half, effective mill	3587
levied in the county the preceding year available to pay the	3588
nonfederal share of the services that the county board is required	3589
by division (A) of this section to pay.	3590

If by December 31, 2002, the United States secretary approves	3591
at least five hundred more slots for home and community-based	3592
services for calendar year 2003 than were available for calendar	3593
year 2002, each county board shall provide, by the last day of	3594
calendar year 2002, assurances to the department that the county	3595
board will have for calendar year 2003 at least two-thirds of the	3596
value of one-half, effective mill levied in the county the	3597
preceding year available to pay the nonfederal share of the	3598
services that the county board is required by division (A) of this	3599
section to pay.	3600

If by December 31, 2003, the United States secretary approves	3601
at least five hundred more slots for home and community-based	3602
services for calendar year 2004 than were available for calendar	3603
year 2003, each county board shall provide, by the last day of	3604
calendar year 2003 and each calendar year thereafter, assurances	3605
to the department that the county board will have for calendar	3606
year 2004 and each calendar year thereafter at least the value of	3607
one-half, effective mill levied in the county the preceding year	3608
available to pay the nonfederal share of the services that the	3609
county board is required by division (A) of this section to pay.	3610

(D) Each year, each county board shall adopt a resolution	3611
specifying the amount of funds it will use in the next year to pay	3612
the nonfederal share of the services that the county board is	3613
required by division (A) of this section to pay. The amount	3614
specified shall be adequate to assure that the services will be	3615
available in the county in a manner that conforms to all	3616
applicable state and federal laws. A county board shall state in	3617
its resolution that the payment of the nonfederal share represents	3618
an ongoing financial commitment of the county board. A county	3619
board shall adopt the resolution in time for the county auditor to	3620
make the determination required by division (E) of this section.	3621

(E) Each year, a county auditor shall determine whether the	3622
amount of funds a county board specifies in the resolution it	3623
adopts under division (D) of this section will be available in the	3624
following year for the county board to pay the nonfederal share of	3625
the services that the county board is required by division (A) of	3626
this section to pay. The county auditor shall make the	3627
determination not later than the last day of the year before the	3628
year in which the funds are to be used.	3629

Sec. 5126.06.  (A) Except as provided in division (B) of	3630
this section and section 5126.0355126.036 of the Revised Code,	3631
any person who has a complaint involving any of the programs,	3632
services, policies, or administrative practices of a county board	3633
of mental retardation and developmental disabilities or any of the	3634
entities under contract with the county board, may file a	3635
complaint with the board. Prior to commencing a civil action	3636
regarding the complaint, a person shall attempt to have the	3637
complaint resolved through the administrative resolution process	3638
established in the rules adopted under section 5123.043 of the	3639
Revised Code. After exhausting the administrative resolution	3640
process, the person may commence a civil action if the complaint	3641
is not settled to the person's satisfaction.	3642

(B) An employee of a county board may not file under this	3643
section a complaint related to the terms and conditions of	3644
employment of the employee.	3645

Sec. 5126.14. The entity responsible for the habilitation	3646
management included in adult day habilitation services, the	3647
program management included in, residential services, and the	3648
program management included in supported living shall provide	3649
administrative oversight by doing all of the following:	3650

(A) Having available supervisory personnel to monitor and	3651
ensure implementation of all interventions in accordance with	3652
every individual service plan implemented by the staff who work	3653
with the individuals receiving the services;	3654

(B) Providing appropriate training and technical assistance	3655
for all staff who work with the individuals receiving services;	3656

(C) Communicating with service and support administration	3657
staff for the purpose of coordinating activities to ensure that	3658
services are provided to individuals in accordance with individual	3659
service plans and intended outcomes;	3660

(D) Monitoring for unusual and major unusual incidents and	3661
cases of abuse, neglect, or exploitation, or misappropriation of	3662
funds involving the individual under the care of staff who are	3663
providing the services; taking immediate actions as necessary to	3664
maintain the health, safety, and welfare of the individuals	3665
receiving the services; and providing notice of unusual and major	3666
unusual incidents and suspected cases of abuse, neglect, or	3667
exploitation, or misappropriation of funds to the investigative	3668
agent for the county board of mental retardation and developmental	3669
disabilities;	3670

(E) Performing other administrative duties as required by	3671
state or federal law or by the county board of mental retardation	3672
and developmental disabilities through contracts with providers.	3673

Sec. 5126.15.  (A) A county board of mental retardation and	3674
developmental disabilities shall provide service and support	3675
administration to each individual three years of age or older who	3676
is eligible for other services of the boardservice and support	3677
administration if the individual requests, or a person on the	3678
individual's behalf requests, service and support administration.	3679
A board shall provide service and support administration to each	3680
individual receiving home and community-based services. A board	3681
may provide, in accordance with the service coordination	3682
requirements of 34 C.F.R. 303.23, service and support	3683
administration to an individual under three years of age eligible	3684
for early intervention services under 34 C.F.R. part 303. A board	3685
may provide service and support administration to an individual	3686
who is not eligible for other services of the board. Service and	3687
support administration shall be provided in accordance with rules	3688
adopted under section 5126.08 of the Revised Code.	3689

A board may provide service and support administration by	3690
directly employing service and support administrators or by	3691
contracting with entities for the performance of service and	3692
support administration. Individuals employed or under contract as	3693
service and support administrators shall not be in the same	3694
collective bargaining unit as employees who perform duties that	3695
are not administrative.	3696

Individuals employed by a board as service and support	3697
administrators shall not be assigned responsibilities for	3698
implementing other services for individuals and shall not be	3699
employed by or serve in a decision-making or policy-making	3700
capacity for any other entity that provides programs or services	3701
to individuals with mental retardation or developmental	3702
disabilities. An individual employed as a conditional status	3703
service and support administrator shall perform the duties of	3704
service and support administration only under the supervision of a	3705
management employee who is a service and support administration	3706
supervisor or a professional employee who is a service and support	3707
administrator.	3708

(B) The individuals employed by or under contract with a	3709
board to provide service and support administration shall do all	3710
of the following:	3711

(1) Establish an individual's eligibility for the services	3712
of the county board of mental retardation and developmental	3713
disabilities;	3714

(2) Assess individual needs for services;

3715

(3) Develop individual service plans with the active	3716
participation of the individual to be served, other persons	3717
selected by the individual, and, when applicable, the provider	3718
selected by the individual, and recommend the plans for approval	3719
by the department of mental retardation and developmental	3720
disabilities when services included in the plans are funded	3721
through medicaid;	3722

(4) Establish budgets for services based on the individual's	3723
assessed needs and preferred ways of meeting those needs;	3724

(5) Assist individuals in making selections from among the	3725
providers they have chosen;	3726

(6) Ensure that services are effectively coordinated and	3727
provided by appropriate providers;	3728

(7) Establish and implement an ongoing system of monitoring	3729
the implementation of individual service plans to achieve	3730
consistent implementation and the desired outcomes for the	3731
individual;	3732

(8) Perform quality assurance reviews as a distinct function	3733
of service and support administration;	3734

(9) Incorporate the results of quality assurance reviews and	3735
identified trends and patterns of unusual incidents and major	3736
unusual incidents into amendments of an individual's service plan	3737
for the purpose of improving and enhancing the quality and	3738
appropriateness of services rendered to the individual;	3739

(10) Ensure that each individual receiving services has a	3740
designated person who is responsible on a continuing basis for	3741
providing the individual with representation, advocacy, advice,	3742
and assistance related to the day-to-day coordination of services	3743
in accordance with the individual's service plan. The service and	3744
support administrator shall give the individual receiving services	3745
an opportunity to designate the person to provide daily	3746
representation. If the individual declines to make a designation,	3747
the administrator shall make the designation. In either case, the	3748
individual receiving services may change at any time the person	3749
designated to provide daily representation.	3750

(C) Subject to available funds, the department of mental	3751
retardation and developmental disabilities shall pay a county	3752
board an annual subsidy for service and support administration.	3753
The amount of the subsidy shall be equal to the greater of twenty	3754
thousand dollars or two hundred dollars times the board's	3755
certified average daily membership. The payments shall be made in	3756
semiannual installments, which shall be made no later than the	3757
thirty-first day of August and the thirty-first day of January.	3758
Funds received shall be used solely for service and support	3759
administration.	3760

Sec. 5126.17.  (A)(1) Annually, onOn the request of the	3761
director of mental retardation and developmental disabilities, the	3762
tax commissioner shall provide to the department of mental	3763
retardation and developmental disabilities information specifying	3764
each county's taxable value.	3765

(2) On request of the director, each county auditor shall	3766
submit a certified report to the department specifying the	3767
county's taxes and the aggregate rate of tax authorized to be	3768
levied by the board of county commissioners pursuant to division	3769
(L) of section 5705.19 and section 5705.222 of the Revised Code or	3770
the aggregate rate of tax authorized pursuant to that division and	3771
that section and certified to the county auditor under section	3772
319.30 of the Revised Code. Tax information submitted by the	3773
county auditor shall be obtained from the most recent tax year for	3774
which the information is available.	3775

(3) The director may request any other tax information	3776
necessary for purposes of sections 5126.16 to 5126.18 of the	3777
Revised Code.	3778

(B) Using the information obtained under this section and	3779
each board's enrollment, the department shall annually determine	3780
the hypothetical statewide average revenue per enrollee and, for	3781
each county board, the hypothetical local revenue per enrollee.	3782
This division applies only in those years in which the director	3783
determines that the department will implement section 5126.18 of	3784
the Revised Code.	3785

Sec. 5126.18.  (A) The department of mental retardation and	3786
developmental disabilities shall pay to each county board of	3787
mental retardation and developmental disabilities whose	3788
hypothetical local revenue per enrollee is less than the	3789
hypothetical statewide average revenue per enrollee the amount	3790
computed under division (B) of this section. Payments shall be	3791
made on or before the thirtieth day of September.	3792

(B) Except as provided in division (C) of this section, the	3793
amount to be paid to a county board shall be equal to the	3794
following:	3795

(1) If the county board's effective tax rate is equal to or	3796
greater than one mill, the product obtained by multiplying the	3797
following two quantities:	3798

(a) The amount by which the hypothetical statewide average	3799
revenue per enrollee exceeds the county board's hypothetical local	3800
revenue per enrollee;	3801

(b) The county board's infant and adult enrollment.

3802

(2) If the county board's effective tax rate is less than	3803
one mill, the product obtained by multiplying the following three	3804
quantities:	3805

(a) The amount by which the hypothetical statewide average	3806
revenue per enrollee exceeds the county board's hypothetical local	3807
revenue per enrollee;	3808

(b) The county board's infant and adult enrollment;

3809

(c) The quotient obtained by dividing the county board's	3810
effective tax rate by one mill.	3811

(C)(1) For each individual who is enrolled in active	3812
treatment under the community alternative funding system as	3813
defined in section 5126.12 of the Revised Code, the department may	3814
reduce the portion of the payment made under this section for that	3815
individual by fifty per cent or less.	3816

(2) If, in any year, an appropriation by the general	3817
assembly to the department for purposes of this section is less	3818
than the total amount required to make, in full, the payments as	3819
determined under and authorized by this section, the department	3820
shall pay each county board the same percentage of the board's	3821
payment as determined under this section without regard to this	3822
division that the amount of the appropriation available for	3823
purposes of this section is of the total amount of payments as	3824
determined under this section without regard to this division.	3825

(3) Payments made to a county board pursuant to this section	3826
shall not exceed thirty per cent of the payments made to that	3827
board pursuant to section 5126.12 of the Revised Code.	3828

(D) Payments made under this section are supplemental to all	3829
other state or federal funds for which county boards are eligible	3830
and shall be made from funds appropriated for purposes of this	3831
section. A county board shall use the payments solely to pay	3832
the nonfederal share of medicaid expenditures that division (A) of	3833
section 5126.0565126.057 of the Revised Code requires the county	3834
board to pay.	3835

(E) Each county board that receives a payment under this	3836
section shall, for each year it receives a payment, certify to the	3837
department that it will make a good faith effort to obtain	3838
revenues, including federal funds, for services to individuals	3839
included in its infant and adult enrollment.	3840

Sec. 5126.19.  (A) The director of mental retardation and	3841
developmental disabilities may grant temporary funding from the	3842
community mental retardation and developmental disabilities trust	3843
fund based on allocations to a county boardboards of mental	3844
retardation and developmental disabilities. With the consent of	3845
the county board, theThe director may distribute all or part of	3846
the funding directly to a county board, the persons who provide	3847
the services for which the funding is granted, or persons with	3848
mental retardation or developmental disabilities who are to	3849
receive those services.	3850

(B) Funding granted under division (A) of this section shall	3851
be granted according to the availability of moneys in the fund and	3852
priorities established by the director. Funding may be granted	3853
for any of the following purposes:	3854

(1) Behavioral or short-term interventions for persons with	3855
mental retardation or developmental disabilities that assist them	3856
in remaining in the community by preventing institutionalization;	3857

(2) Emergency respite care services, as defined in section	3858
5126.11 of the Revised Code;	3859

(3) Family support services provided under section 5126.11	3860
of the Revised Code;	3861

(4) Supported living, as defined in section 5126.01 of the	3862
Revised Code;	3863

(5) Staff training for county board employees, employees of	3864
providers of residential services as defined in section 5126.01 of	3865
the Revised Code, and other personnel under contract with a county	3866
board, to provide the staff with necessary training in serving	3867
mentally retarded or developmentally disabled persons in the	3868
community;	3869

(6) Short-term provision of early childhood services	3870
provided under section 5126.05, adult services provided under	3871
sections 5126.05 and 5126.051, and service and support	3872
administration provided under section 5126.15 of the Revised Code,	3873
when local moneys are insufficient to meet the need for such	3874
services due to the successive failure within a two-year period of	3875
three or more proposed levies for the services;	3876

(7) Contracts with providers of residential services to	3877
maintain persons with mental retardation and developmental	3878
disabilities in their programs and avoid institutionalization.	3879

(C) If the trust fund contains more than ten million dollars	3880
on the first day of July the director shall use one million	3881
dollars for payments under section 5126.12 of the Revised Code,	3882
one million dollars for payments under section 5126.18 of the	3883
Revised Code, and two million dollars for payments under section	3884
5126.44 of the Revised Code. Distributions of funds under this	3885
division shall be made prior to August 31 of the state fiscal year	3886
in which the funds are available. The funds shall be distributed	3887
allocated to a county board in an amount equal to the same	3888
percentage of the total amount distributed for the services that	3889
allocated to the county board received in the immediately	3890
preceding state fiscal year.	3891

(D) In addition to making grants under division (A) of this	3892
section, the director may use money available in the trust fund	3893
for the same purposes that rules adopted under section 5123.0413	3894
of the Revised Code provide for money in the state MR/DD risk fund	3895
and the state insurance against MR/DD risk fund, both created	3896
under that section, to be used.	3897

Sec. 5126.221.  Each county board of mental retardation and	3898
developmental disabilities shall employ at least one investigative	3899
agent or contract with a person or government entity, including	3900
another county board of mental retardation and developmental	3901
disabilities or a regional council established under section	3902
5126.13 of the Revised Code, for the services of an investigative	3903
agent. Neither a county board nor a person or government entity	3904
with which a county board contracts for the services of an	3905
investigative agent shall assign any duties to an investigative	3906
agent other than conducting investigations under section 5126.313	3907
of the Revised Code.	3908

All investigative agents shall be trained in civil and	3909
criminal investigatory practices and. The person responsible for	3910
supervising the work of the investigative agents shall report	3911
directly to a county board's superintendent regarding the	3912
investigative agents. No	3913

No investigative agent shall do anything that interferes with	3914
the investigative agent's objectivity in conducting investigations	3915
under section 5126.313 of the Revised Code.	3916

Sec. 5126.357.  (A) As used in this section:

3917

(1) "In-home care" means the supportive services provided	3918
within the home of an individual who receives funding for the	3919
services as a county board client, including any client who	3920
receives residential services funded through home orand	3921
community-based services, family support services provided under	3922
section 5126.11 of the Revised Code, or supported living provided	3923
in accordance with sections 5126.41 to 5126.47 of the Revised	3924
Code. "In-home care" includes care that is provided outside a	3925
client's home in places incidental to the home, and while	3926
traveling to places incidental to the home, except that "in-home	3927
care" does not include care provided in the facilities of a county	3928
board of mental retardation and developmental disabilities or care	3929
provided in schools.	3930

(2) "Parent" means either parent of a child, including an	3931
adoptive parent but not a foster parent.	3932

(3) "Unlicensed in-home care worker" means an individual who	3933
provides in-home care but is not a health care professional. A	3934
county board worker may be an unlicensed in-home care worker.	3935

(4) "Family member" means a parent, sibling, spouse, son,	3936
daughter, grandparent, aunt, uncle, cousin, or guardian of the	3937
individual with mental retardation or a developmental disability	3938
if the individual with mental retardation or developmental	3939
disabilities lives with the person and is dependent on the person	3940
to the extent that, if the supports were withdrawn, another living	3941
arrangement would have to be found.	3942

(B) Except as provided in division (D) of this section, a	3943
family member of an individual with mental retardation or a	3944
developmental disability may authorize an unlicensed in-home care	3945
worker to give or apply prescribed medication or perform other	3946
health care tasks as part of the in-home care provided to the	3947
individual, if the family member is the primary supervisor of the	3948
care and the unlicensed in-home care worker has been selected by	3949
the family member and is under the direct supervision of the	3950
family member. Sections 4723.62 and 5126.351 to 5126.356 of the	3951
Revised Code do not apply to the in-home care authorized by a	3952
family member under this section. Instead, a family member shall	3953
obtain a prescription, if applicable, and written instructions	3954
from a health care professional for the care to be provided to the	3955
individual. The family member shall authorize the unlicensed	3956
in-home care worker to provide the care by preparing a written	3957
document granting the authority. The family member shall provide	3958
the unlicensed in-home care worker with appropriate training and	3959
written instructions in accordance with the instructions obtained	3960
from the health care professional.	3961

(C) A family member who authorizes an unlicensed in-home	3962
care worker to give or apply prescribed medication or perform	3963
other health care tasks retains full responsibility for the health	3964
and safety of the individual receiving the care and for ensuring	3965
that the worker provides the care appropriately and safely. No	3966
entity that funds or monitors the provision of in-home care may be	3967
held liable for the results of the care provided under this	3968
section by an unlicensed in-home care worker, including such	3969
entities as the county board of mental retardation and	3970
developmental disabilities, any other entity that employs an	3971
unlicensed in-home care worker, and the department of mental	3972
retardation and developmental disabilities.	3973

An unlicensed in-home care worker who is authorized under	3974
this section by a family member to provide care to an individual	3975
may not be held liable for any injury caused in providing the	3976
care, unless the worker provides the care in a manner that is not	3977
in accordance with the training and instructions received or the	3978
worker acts in a manner that constitutes wanton or reckless	3979
misconduct.	3980

(D) A county board of mental retardation and developmental	3981
disabilities may evaluate the authority granted by a family member	3982
under this section to an unlicensed in-home care worker at any	3983
time it considers necessary and shall evaluate the authority on	3984
receipt of a complaint. If the board determines that a family	3985
member has acted in a manner that is inappropriate for the health	3986
and safety of the individual receiving the services, the	3987
authorization granted by the family member to an unlicensed	3988
in-home care worker is void, and the family member may not	3989
authorize other unlicensed in-home care workers to provide the	3990
care. In making such a determination, the board shall use	3991
appropriately licensed health care professionals and shall provide	3992
the family member an opportunity to file a complaint under section	3993
5126.06 of the Revised Code.	3994

Sec. 5705.44.  When contracts or leases run beyond the	3995
termination of the fiscal year in which they are made, the fiscal	3996
officer of the taxing authority shall make a certification for the	3997
amount required to meet the obligation of such contract or lease	3998
maturing in such fiscal year. The amount of the obligation under	3999
such contract or lease remaining unfulfilled at the end of a	4000
fiscal year, and which will become payable during the next fiscal	4001
year, shall be included in the annual appropriation measure for	4002
the next year as a fixed charge.	4003

The certificate required by section 5705.41 of the Revised	4004
Code as to money in the treasury shall not be required for	4005
contracts on which payments are to be made from the earnings of a	4006
publicly operated water works or public utility, but in the case	4007
of any such contract made without such certification, no payment	4008
shall be made on account thereof, and no claim or demand thereon	4009
shall be recoverable, except out of such earnings. That	4010
certificate also shall not be required if requiring the	4011
certificate makes it impossible for a county board of mental	4012
retardation and developmental disabilities to pay the nonfederal	4013
share of medicaid expenditures that the county board is required	4014
by division (A) of section 5126.0565126.057 of the Revised Code	4015
to pay.	4016

Sec. 5709.12.  (A) As used in this section, "independent	4017
living facilities" means any residential housing facilities and	4018
related property that are not a nursing home, residential care	4019
facility, or adult care facility as defined in division (A) of	4020
section 5701.13 of the Revised Code.	4021

(B) Lands, houses, and other buildings belonging to a	4022
county, township, or municipal corporation and used exclusively	4023
for the accommodation or support of the poor, or leased to the	4024
state or any political subdivision for public purposes shall be	4025
exempt from taxation. Real and tangible personal property	4026
belonging to institutions that is used exclusively for charitable	4027
purposes shall be exempt from taxation, including real property	4028
belonging to a nonprofit corporation that receives a grant under	4029
the Thomas Alva Edison program authorized by division (C) of	4030
section 122.33 of the Revised Code at any time during the tax year	4031
and being leased to others or held for leasing or resale to	4032
others. All property owned and used by a nonprofit organization	4033
exclusively for a home for the aged, as defined in section 5701.13	4034
of the Revised Code, also shall be exempt from taxation.	4035

(C) If a home for the aged is operated in conjunction with	4036
or at the same site as independent living facilities, the	4037
exemption granted in division (B) of this section shall include	4038
kitchen, dining room, clinic, entry ways, maintenance and storage	4039
areas, and land necessary for access commonly used by both	4040
residents of the home for the aged and residents of the	4041
independent living facilities. Other facilities commonly used by	4042
both residents of the home for the aged and residents of	4043
independent living units shall be exempt from taxation only if the	4044
other facilities are used primarily by the residents of the home	4045
for the aged. Vacant land currently unused by the home, and	4046
independent living facilities and the lands connected with them	4047
are not exempt from taxation. Except as provided in division (A)	4048
of section 5709.121 of the Revised Code, property of a home leased	4049
for nonresidential purposes is not exempt from taxation.	4050

(D)(1) A private corporation established under federal law,	4051
defined in 36 U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629, as	4052
amended, the objects of which include encouraging the advancement	4053
of science generally, or of a particular branch of science, the	4054
promotion of scientific research, the improvement of the	4055
qualifications and usefulness of scientists, or the increase and	4056
diffusion of scientific knowledge is conclusively presumed to be a	4057
charitable or educational institution. A private corporation	4058
established as a nonprofit corporation under the laws of a state,	4059
that is exempt from federal income taxation under section	4060
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 26	4061
U.S.C.A. 1, as amended, and has as its principal purpose one or	4062
more of the foregoing objects, also is conclusively presumed to be	4063
a charitable or educational institution.	4064

The fact that an organization described in this division	4065
operates in a manner that results in an excess of revenues over	4066
expenses shall not be used to deny the exemption granted by this	4067
section, provided such excess is used, or is held for use, for	4068
exempt purposes or to establish a reserve against future	4069
contingencies; and, provided further, that such excess may not be	4070
distributed to individual persons or to entities that would not be	4071
entitled to the tax exemptions provided by this chapter. Nor	4072
shall the fact that any scientific information diffused by the	4073
organization is of particular interest or benefit to any of its	4074
individual members be used to deny the exemption granted by this	4075
section, provided that such scientific information is available to	4076
the public for purchase or otherwise.	4077

(2) Division (D)(2) of this section does not apply to real	4078
property exempted from taxation under this section and division	4079
(C) of section 5709.121 of the Revised Code and belonging to a	4080
nonprofit corporation described in division (D)(1) of this section	4081
that has received a grant under the Thomas Alva Edison grant	4082
program authorized by division (C) of section 122.33 of the	4083
Revised Code during any of the tax years the property was exempted	4084
from taxation.	4085

When a private corporation as described in this division	4086
(D)(1) of this section sells all or any portion of a tract, lot,	4087
or parcel of real estate that has been exempt from taxation under	4088
this section and section 5709.121 of the Revised Code, the portion	4089
sold shall be restored to the tax list for the year following the	4090
year of the sale and a charge shall be levied against the sold	4091
property in an amount equal to the tax savings on such property	4092
during the four tax years preceding the year the property is	4093
placed on the tax list. The tax savings equals the amount of the	4094
additional taxes that would have been levied if such property had	4095
not been exempt from taxation.	4096

The charge constitutes a lien of the state upon such property	4097
as of the first day of January of the tax year in which the charge	4098
is levied and continues until discharged as provided by law. The	4099
charge may also be remitted for all or any portion of such	4100
property that the tax commissioner determines is entitled to	4101
exemption from real property taxation for the year such property	4102
is restored to the tax list under any provision of the Revised	4103
Code, other than sections 725.02, 1728.10, 3735.67, 5709.40,	4104
5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, and 5709.84,	4105
upon an application for exemption covering the year such property	4106
is restored to the tax list filed under section 5715.27 of the	4107
Revised Code.	4108

(E) Real property held by an organization organized and	4109
operated exclusively for charitable purposes as described under	4110
section 501(c)(3) of the Internal Revenue Code and exempt from	4111
federal taxation under section 501(a) of the Internal Revenue	4112
Code, 26 U.S.C.A. 501(a) and (c)(3), as amended, for the purpose	4113
of constructing or rehabilitating residences for eventual transfer	4114
to qualified low-income families through sale, lease, or land	4115
installment contract, shall be exempt from taxation.	4116

The exemption shall commence on the day title to the property	4117
is transferred to the organization and shall continue to the end	4118
of the tax year in which the organization transfers title to the	4119
property to a qualified low-income family. In no case shall the	4120
exemption extend beyond the second succeeding tax year following	4121
the year in which the title was transferred to the organization.	4122
If the title is transferred to the organization and from the	4123
organization to a qualified low-income family in the same tax	4124
year, the exemption shall continue to the end of that tax year.	4125
The proportionate amount of taxes that are a lien but not yet	4126
determined, assessed, and levied for the tax year in which title	4127
is transferred to the organization shall be remitted by the county	4128
auditor for each day of the year that title is held by the	4129
organization.	4130

Upon transferring the title to another person, the	4131
organization shall file with the county auditor an affidavit	4132
affirming that the title was transferred to a qualified low-income	4133
family or that the title was not transferred to a qualified	4134
low-income family, as the case may be; if the title was	4135
transferred to a qualified low-income family, the affidavit shall	4136
identify the transferee by name. If the organization transfers	4137
title to the property to anyone other than a qualified low-income	4138
family, the exemption, if it has not previously expired, shall	4139
terminate, and the property shall be restored to the tax list for	4140
the year following the year of the transfer and a charge shall be	4141
levied against the property in an amount equal to the amount of	4142
additional taxes that would have been levied if such property had	4143
not been exempt from taxation. The charge constitutes a lien of	4144
the state upon such property as of the first day of January of the	4145
tax year in which the charge is levied and continues until	4146
discharged as provided by law.	4147

The application for exemption shall be filed as otherwise	4148
required under section 5715.27 of the Revised Code, except that	4149
the organization holding the property shall file with its	4150
application documentation substantiating its status as an	4151
organization organized and operated exclusively for charitable	4152
purposes under section 501(c)(3) of the Internal Revenue Code and	4153
its qualification for exemption from federal taxation under	4154
section 501(a) of the Internal Revenue Code, and affirming its	4155
intention to construct or rehabilitate the property for the	4156
eventual transfer to qualified low-income families.	4157

As used in this division, "qualified low-income family" means	4158
a family whose income does not exceed two hundred per cent of the	4159
official federal poverty guidelines as revised annually in	4160
accordance with section 673(2) of the "Omnibus Budget	4161
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C.A. 9902, as	4162
amended, for a family size equal to the size of the family whose	4163
income is being determined.	4164

Sec. 5709.121.  Real property and tangible personal property	4165
belonging to a charitable or educational institution or to the	4166
state or a political subdivision, shall be considered as used	4167
exclusively for charitable or public purposes by such institution,	4168
the state, or political subdivision, if it meets one of the	4169
following requirements:	4170

(A) It is used by such institution, the state, or political	4171
subdivision, or by one or more other such institutions, the state,	4172
or political subdivisions under a lease, sublease, or other	4173
contractual arrangement:	4174

(1) As a community or area center in which presentations in	4175
music, dramatics, the arts, and related fields are made in order	4176
to foster public interest and education therein;	4177

(2) For other charitable, educational, or public purposes;

4178

(B) It is made available under the direction or control of	4179
such institution, the state, or political subdivision for use in	4180
furtherance of or incidental to its charitable, edcuational	4181
educational, or public purposes and not with the view to profit.	4182

(C) It is used by an organization described in division (D)	4183
of section 5709.12 of the Revised Code. If the corporation	4184
receives a grant under the Thomas Alva Edison grant program	4185
authorized by division (C) of section 122.33 of the Revised Code	4186
at any time during the tax year, "used," for the purposes of this	4187
division, includes leasing property to others or holding property	4188
for lease or resale to others.	4189

Sec. 5709.17.  (A) Real estate held or occupied by an	4190
association or corporation, organized or incorporated under the	4191
laws of this state relative to soldiers' memorial associations,	4192
monumental building associations, or cemetery associations or	4193
corporations, which in the opinion of the trustees, directors, or	4194
managers thereof is necessary and proper to carry out the object	4195
intended for such association or corporation, shall be exempt from	4196
taxation.	4197

(B) Real estate and tangible personal property held or	4198
occupied by a war veterans' organization, which is organized	4199
exclusively for charitable purposes and incorporated under the	4200
laws of this state or the United States, except real estate held	4201
by such organization for the production of rental income, shall be	4202
exempt from taxation.	4203

(C) Tangible personal property held by a corporation	4204
chartered under 112 Stat. 1335, 36 U.S.C.A. 40701, described in	4205
section 501(c)(3) of the Internal Revenue Code, and exempt from	4206
taxation under section 501(a) of the Internal Revenue Code shall	4207
be exempt from taxation if it is surplus property obtained as	4208
described in 112 Stat. 13401335-1341, 36 U.S.C.A. 40730Chapter	4209
407.	4210

Sec. 5709.40.  (A) As used in this section;:

4211

(1) "Blighted area" and "impacted city" have the same	4212
meanings as in section 1728.01 of the Revised Code.	4213

(2) "Business day" means a day of the week excluding	4214
Saturday, Sunday, and a legal holiday as defined under section	4215
1.14 of the Revised Code.	4216

(3) "Housing renovation" means a project carried out for	4217
residential purposes.	4218

(2)(4) "Improvement" means the increase in the assessed	4219
value of anya parcel of real property that would first appear on	4220
the tax list and duplicate of real and public utility property	4221
subsequent toafter the effective date of an ordinance adopted	4222
under this section were it not for the exemption specifiedgranted	4223
by that ordinance. "Improvement" does not include a public	4224
infrastructure improvement.	4225

(5) "Incentive district" means an area not more than three	4226
hundred acres in size enclosed by a continuous boundary and having	4227
one or more of the following distress characteristics:	4228

(a) At least fifty-one per cent of the residents of the	4229
district have incomes of less than eighty per cent of the median	4230
income of residents of the political subdivision in which the	4231
district is located, as determined in the same manner specified	4232
under section 119(b) of the "Housing and Community Development Act	4233
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;	4234

(b) The average rate of unemployment in the district during	4235
the most recent twelve-month period for which data are available	4236
is equal to at least one hundred fifty per cent of the average	4237
rate of unemployment for this state for the same period.	4238

(c) At least twenty per cent of the people residing in the	4239
district live at or below the poverty level as defined in the	4240
federal Housing and Community Development Act of 1974, 42 U.S.C.	4241
5301, as amended, and regulations adopted pursuant to that act.	4242

(d) The district is a blighted area.

4243

(e) The district is in a situational distress area as	4244
designated by the director of development under division (F) of	4245
section 122.23 of the Revised Code.	4246

(f) As certified by the engineer for the political	4247
subdivision, the public infrastructure serving the district is	4248
below the standards required by a written, comprehensive economic	4249
development plan adopted by the legislative authority of the	4250
subdivision.	4251

(g) The district is comprised entirely of unimproved land	4252
that is located in a distressed area as defined in section 122.23	4253
of the Revised Code.	4254

(6) "Project" means development activities undertaken on a	4255
parcel, including, but not limited to, construction, expansion,	4256
and alteration of buildings or structures, demolition,	4257
remediation, and site development, and the building or structure	4258
that results from those activities.	4259

(7) "Public infrastructure improvement" includes, but is not	4260
limited to, public roads and highways, water and sewer lines,	4261
remediation, land acquisition, demolition, the provision of gas,	4262
electric, and communications service facilities, and the	4263
enhancement of public waterways through improvements that allow	4264
for greater public access.	4265

(B) The legislative authority of a municipal corporation, by	4266
ordinance, may declare improvements to a parcelcertain parcels of	4267
real property located in the municipal corporation to be a public	4268
purpose. Improvements used or to be used for residential purposes	4269
may be declared a public purpose under this sectiondivision only	4270
if thea parcel is located in a blighted area of an impacted city	4271
as those terms are defined in section 1728.01 of the Revised Code.	4272
Except as otherwise provided in division (B)(1), (2), or (3)(D) of	4273
this section, not more than seventy-five per cent of an	4274
improvement thus declared to be a public purpose may be exempted	4275
from real property taxation; the percentage exempted shall not,	4276
except as otherwise provided in that division (B)(1), (2), or (3)	4277
of this section, exceed the estimated percentage of the	4278
incremental demand placed on the public infrastructure	4279
improvements that is directly attributable to the exempted	4280
improvement. The ordinance shall specify the percentage of the	4281
improvement to be exempted from taxation.	4282

An ordinance adopted or amended under this division shall	4283
designate the specific public infrastructure improvements made, to	4284
be made, or in the process of being made by the municipal	4285
corporation that directly benefit, or that once made will directly	4286
benefit, a parcel. For the purposes of this division, a public	4287
infrastructure improvement directly benefits a parcel only if a	4288
project on the parcel places direct, additional demand on the	4289
public infrastructure improvement or, if the public infrastructure	4290
improvement has not yet been completed, will place direct,	4291
additional demand on the public infrastructure improvement once it	4292
is completed. The service payments provided for in section 5709.42	4293
of the Revised Code shall be used to finance the public	4294
infrastructure improvements designated in the ordinance or for the	4295
purpose described in division (D)(1) of this section.	4296

(C) The legislative authority of a municipal corporation may	4297
adopt an ordinance creating an incentive district and declaring	4298
improvements to parcels within the district to be a public purpose	4299
and exempt from taxation as provided in this section. The	4300
ordinance shall delineate the boundary of the district and	4301
specifically identify each parcel within the district. A district	4302
may not include any parcel that is or has been exempted from	4303
taxation under division (B) of this section or that is or has been	4304
within another district created under this division. An	4305
ordinance may create more than one such district, and more than	4306
one ordinance may be adopted under this division.	4307

An ordinance under this division shall specify the life of	4308
the district and the percentage of the improvements to be exempted	4309
and shall designate the public infrastructure improvements made or	4310
to be made that benefit or serve parcels in the district. The	4311
service payments provided for in section 5709.42 of the Revised	4312
Code shall be used to finance the designated public infrastructure	4313
improvements or for the purpose described in division (D)(1) of	4314
this section.	4315

An ordinance adopted under this division may authorize the	4316
use of service payments provided for in section 5709.42 of the	4317
Revised Code for the purpose of housing renovations within the	4318
district, provided that the ordinance also designates public	4319
infrastructure improvements that benefit or serve the district,	4320
and that a project within the district places real property in use	4321
for commercial or industrial purposes. Service payments may be	4322
used to finance or support loans, deferred loans, and grants to	4323
persons for the purpose of housing renovations within the	4324
district. The ordinance shall designate the parcels within the	4325
district that are eligible for housing renovation. The ordinance	4326
shall state separately the amounts or the percentages of the	4327
expected aggregate service payments that are designated for each	4328
public infrastructure improvement and for the general purpose of	4329
housing renovations.	4330

Except with the approval of the board of education of each	4331
city, local, or exempted village school district within the	4332
territory of which the district is or will be located, the life of	4333
a district shall not exceed ten years, and the percentage of	4334
improvements to be exempted shall not exceed seventy-five per	4335
cent. With such approval, the life of a district may be not more	4336
than thirty years, and the percentage of improvements to be	4337
exempted may be not more than one hundred per cent.	4338

Approval of a board of education shall be obtained in the	4339
manner provided in division (D) of this section for exemptions	4340
under division (B) of this section, except that the notice to the	4341
board of education shall delineate the boundaries of the district,	4342
specifically identify each parcel within the district, identify	4343
each anticipated improvement in the district, provide an estimate	4344
of the true value in money of each such improvement, specify the	4345
life of the district and the percentage of improvements that would	4346
be exempted, and indicate the date on which the legislative	4347
authority intends to adopt the ordinance.	4348

A municipal corporation shall not adopt an ordinance under	4349
this division after June 30, 2007.	4350

(D)(1) If the ordinance declaring improvements to a parcel	4351
to be a public purpose or creating an incentive district specifies	4352
that payments in lieu of taxes provided for in section 5709.42 of	4353
the Revised Code shall be paid to the city, local, or exempted	4354
village school district in which the parcel is located in the	4355
amount of the taxes that would have been payable to the school	4356
district if the improvements had not been exempted from taxation,	4357
the percentage of the improvement that may be exempted from	4358
taxation may exceed seventy-five per cent, and the exemption may	4359
be granted for up to thirty years, without the approval of the	4360
board of education as otherwise required under division (B)(D)(2)	4361
of this section.	4362

(2) Improvements with respect to a parcel may be exempted	4363
from taxation under division (B) of this section for up to ten	4364
years or, with the approval under this paragraph of the board of	4365
education of the city, local, or exempted village school district	4366
within the territory of which the improvements are or will be	4367
parcel is located, for up to thirty years. The percentage of the	4368
improvement exempted from taxation may, with such approval, exceed	4369
seventy-five per cent, but shall not exceed one hundred per cent.	4370
Not later than forty-five business days prior to adopting an	4371
ordinance under this section declaring improvements to be a public	4372
purpose, the legislative authority shall deliver to the board of	4373
education a notice stating its intent to declare improvements to	4374
be a public purpose under this sectionadopt an ordinance making	4375
that declaration. The notice shall describeidentify the parcel	4376
and the improvements, provide an estimate of the true value in	4377
money of the improvements, specify the period for which the	4378
improvements would be exempted from taxation and the percentage of	4379
the improvement that would be exempted, and indicate the date on	4380
which the legislative authority intends to adopt the ordinance.	4381
The board of education, by resolution adopted by a majority of the	4382
board, may approve the exemption for the period or for the	4383
exemption percentage specified in the notice, may disapprove the	4384
exemption for the number of years in excess of ten, may disapprove	4385
the exemption for the percentage of the improvement to be exempted	4386
in excess of seventy-five per cent, or both, or may approve the	4387
exemption on the condition that the legislative authority and the	4388
board negotiate an agreement providing for compensation to the	4389
school district equal in value to a percentage of the amount of	4390
taxes exempted in the eleventh and subsequent years of the	4391
exemption period or, in the case of exemption percentages in	4392
excess of seventy-five per cent, compensation equal in value to a	4393
percentage of the taxes that would be payable on the portion of	4394
the improvement in excess of seventy-five per cent were that	4395
portion to be subject to taxation. The board of education shall	4396
certify its resolution to the legislative authority not later than	4397
fourteen days prior to the date the legislative authority intends	4398
to adopt the ordinance as indicated in the notice. If the board	4399
of education approves the exemption on the condition that a	4400
compensation agreement be negotiated, the board in its resolution	4401
shall propose a compensation percentage. If the board of	4402
education and the legislative authority negotiate a mutually	4403
acceptable compensation agreement, the ordinance may declare the	4404
improvements a public purpose for the number of years specified in	4405
the ordinance or, in the case of exemption percentages in excess	4406
of seventy-five per cent, for the exemption percentage specified	4407
in the ordinance. In either case, if the board and the	4408
legislative authority fail to negotiate a mutually acceptable	4409
compensation agreement, the ordinance may declare the improvements	4410
a public purpose for not more than ten years, but shall not exempt	4411
more than seventy-five per cent of the improvements from taxation,	4412
or, in the case of an ordinance adopted under division (B) of this	4413
section, not more than the estimated percentage of the incremental	4414
demand as otherwise permitted underprescribed by division (B)(1)	4415
of this section, whichever isif that percentage is less than	4416
seventy-five per cent. If the board fails to certify a resolution	4417
to the legislative authority within the time prescribed by this	4418
division, the legislative authority thereupon may adopt the	4419
ordinance and may declare the improvements a public purpose for up	4420
to thirty years, or, in the case of exemption percentages proposed	4421
in excess of seventy-five per cent, for the exemption percentage	4422
specified in the ordinance. The legislative authority may adopt	4423
the ordinance at any time after the board of education certifies	4424
its resolution approving the exemption to the legislative	4425
authority, or, if the board approves the exemption on the	4426
condition that a mutually acceptable compensation agreement be	4427
negotiated, at any time after the compensation agreement is agreed	4428
to by the board and the legislative authority.	4429

(3) If a board of education has adopted a resolution waiving	4430
its right to approve exemptions from taxation and the resolution	4431
remains in effect, approval of exemptions by the board is not	4432
required under this division. If a board of education has adopted	4433
a resolution allowing a legislative authority to deliver the	4434
notice required under this division fewer than forty-five business	4435
days prior to the legislative authority's adoption of the	4436
ordinance, the legislative authority shall deliver the notice to	4437
the board not later than the number of days prior to such adoption	4438
as prescribed by the board in its resolution. If a board of	4439
education adopts a resolution waiving its right to approve	4440
agreements or shortening the notification period, the board shall	4441
certify a copy of the resolution to the legislative authority. If	4442
the board of education rescinds such a resolution, it shall	4443
certify notice of the rescission to the legislative authority.	4444

(4) If the legislative authority is not required by division	4445
(B)(D)(1), (2), or (3) of this section to notify the board of	4446
education of the legislative authority's intent to declare	4447
improvements to be a public purpose, the legislative authority	4448
shall comply with the notice requirements imposed under section	4449
5709.83 of the Revised Code, unless the board has adopted a	4450
resolution under that section waiving its right to receive such a	4451
notice.	4452

(C) The(E) An exemption from taxation granted under this	4453
section commences onwith the tax year in which an improvement	4454
first appears on the tax list and duplicate of real and public	4455
utility property and that begins after the effective date of the	4456
ordinance and. Except as otherwise provided in this division, the	4457
exemption ends on the date specified in the ordinance as the date	4458
the improvement ceases to be a public purpose or the incentive	4459
district expires, or ends on the date on which the public	4460
infrastructure improvements and housing renovations are paid in	4461
full from the municipal public improvement tax increment	4462
equivalent fund established under division (A) of section 5709.43	4463
of the Revised Code, whichever occurs first, unless. An exemption	4464
may end on a later date, as specified in the ordinance, if the	4465
legislative authority and the board of education of the city,	4466
local, or exempted village school district within the territory of	4467
which the exempted improvement is located have entered into a	4468
compensation agreement under section 5709.82 of the Revised Code	4469
with respect to the improvement or district and the board of	4470
education has approved the term of the exemption under division	4471
(B)(D)(2) of this section. If the legislative authority and the	4472
board of education have entered into such an agreement, the	4473
exemption may end on a date, specified in the ordinance, later	4474
than the date on which the improvements are paid in full from the	4475
municipal public improvement tax increment equivalent fund, but in	4476
no case shall the improvement be exempted from taxation for more	4477
than thirty years. The exemptionExemptions shall be claimed and	4478
allowed in the same manner as in the case of other real property	4479
exemptions. If an exemption status changes during a year, the	4480
procedure for the apportionment of the taxes for that year is the	4481
same as in the case of other changes in tax exemption status	4482
during the year.	4483

(D) The ordinance shall designate specific public	4484
improvements made, to be made, or in the process of being made by	4485
the municipal corporation that directly benefit, or that once made	4486
will directly benefit, the parcel. A public improvement directly	4487
benefits a tract or parcel of land only if improvements made to	4488
the tract or parcel place direct, additional demand on the public	4489
improvement, or, if the public improvement has not yet been	4490
constructed, will place direct, additional demand on the public	4491
improvement when completed. The service payments provided for in	4492
section 5709.42 of the Revised Code shall be used to finance the	4493
public improvements designated in the ordinance.(F) Additional	4494
municipal financing of the public infrastructure improvements and	4495
housing renovations may be provided by any methods that the	4496
municipal corporation may otherwise use for financing such	4497
improvements. If the municipal corporation issues bonds or notes	4498
to finance the public infrastructure improvements and housing	4499
renovations and pledges money from the municipal public	4500
improvement tax increment equivalent fund to pay the interest on	4501
and principal of the bonds or notes, the bonds or notes are not	4502
subject to Chapter 133. of the Revised Code.	4503

(E)(G) The municipal corporation, not later than fifteen	4504
days after the adoption of thean ordinance granting a tax	4505
exemption under this section, shall submit to the director of	4506
development a copy of the ordinance. On or before the	4507
thirty-first day of March of each year, the municipal corporation	4508
shall submit a status report to the director of development	4509
outlining. The report shall indicate, in the manner prescribed by	4510
the director, the progress of the project during each year that	4511
thean exemption remains in effect, including a summary of the	4512
receipts from service payments in lieu of taxes; expenditures of	4513
money from the funds created under section 5709.43 of the Revised	4514
Code; a description of the public infrastructure improvements and	4515
housing renovations financed with such expenditures; and a	4516
quantitative summary of changes in employment and private	4517
investment resulting from each project.	4518

Sec. 5709.411.  (A) As used in this section, "detached	4519
improvement" means an improvement as defined in section 5709.41 of	4520
the Revised Code that satisfies all of the following:	4521

(1) The ordinance declaring the improvement to be a public	4522
purpose was adopted under section 5709.41 of the Revised Code by a	4523
municipal corporation that is a party to a contract creating a	4524
joint economic development district under section 715.70 or 715.71	4525
of the Revised Code.	4526

(2) The improvement relates to a parcel of property located	4527
in territory that is detached by that municipal corporation to a	4528
township that is a party to the same contract creating the joint	4529
economic development district, pursuant to that contract and	4530
section 709.38 of the Revised Code.	4531

(3) The ordinance declaring the improvements to be a public	4532
purpose is adopted prior to the detachment of that territory.	4533

(B) The exemption from taxation for detached improvements	4534
under section 5709.41 of the Revised Code shall continue for the	4535
period prescribed in that section and the ordinance under which	4536
the improvements are declared to be a public purpose, or any	4537
amendments to the ordinance, even if the detachment occurs prior	4538
to the end of that period.	4539

(C)(1) The municipal corporation may require the owner of	4540
any building or structure located on a parcel to which the	4541
detached improvement relates to pay service payments in lieu of	4542
taxes under section 5709.42 of the Revised Code after the	4543
territory including the detached improvement is detached. The	4544
service payments shall be distributed to the municipal corporation	4545
as provided in that section.	4546

(2) The municipal corporation may use the service payments	4547
received under division (C)(1) of this section as prescribed by	4548
section 5709.43 of the Revised Code and the ordinance declaring	4549
the detached improvements to be a public purpose. The legislative	4550
authority of the municipal corporation may amend the ordinance to	4551
permit the service payments to be used to pay the cost of streets,	4552
roads, water lines, sewers, and other public infrastructure	4553
improvements as defined in section 5709.40 of the Revised Code	4554
extending from the municipal corporation to the detached territory	4555
or to the joint economic development district, or located on the	4556
detached territory or in the joint economic development district,	4557
or to pay debt service charges on securities issued by the	4558
municipal corporation to finance those public infrastructure	4559
improvements.	4560

Sec. 5709.43.  (A) A municipal corporation that grants a tax	4561
exemption under section 5709.40 of the Revised Code shall	4562
establish a municipal public improvement tax increment equivalent	4563
fund, by ordinance of its legislative authority, into which shall	4564
be deposited service payments in lieu of taxes distributed to the	4565
municipal corporation by the county treasurer as provided inunder	4566
section 5709.42 of the Revised Code for improvements exempt from	4567
taxation pursuant to an ordinance under section 5709.40 of the	4568
Revised Code. If the legislative authority of the municipal	4569
corporation has adopted an ordinance under division (C) of section	4570
5709.40 of the Revised Code, the municipal corporation shall	4571
establish at least one account in that fund with respect to	4572
ordinances adopted under division (B) of that section, and one	4573
account with respect to each district created in an ordinance	4574
adopted under division (C) of that section. If an ordinance	4575
adopted under division (C) of section 5709.40 of the Revised Code	4576
also authorizes the use of service payments for housing	4577
renovations within the district, the municipal corporation shall	4578
establish separate accounts for the service payments designated	4579
for public infrastructure improvements and for the service	4580
payments authorized for the purpose of housing renovations. Money	4581
in an account of the municipal public improvement tax increment	4582
equivalent fund shall be used to finance the specific public	4583
infrastructure improvements designated in, or the housing	4584
renovations authorized by, the ordinance under section 5709.40 of	4585
the Revised Codewith respect to which the account is established;	4586
in the case of an account established with respect to an ordinance	4587
adopted under division (C) of that section, money in the account	4588
shall be used to finance the public infrastructure improvements	4589
designated, or the housing renovations authorized, for each	4590
district created in the ordinance. Money in an account shall not	4591
be used to finance or support housing renovations that take place	4592
after the district has expired. The municipal corporation also	4593
may deposit into the municipal public improvement tax increment	4594
equivalent fundany of those accounts municipal income tax revenue	4595
that has been dedicateddesignated by ordinance to finance the	4596
public infrastructure improvements as designated in the ordinance	4597
and housing renovations.	4598

(B) A municipal corporation may establish an urban	4599
redevelopment tax increment equivalent fund, by resolution or	4600
ordinance of its legislative authority, into which shall be	4601
deposited service payments in lieu of taxes distributed to the	4602
municipal corporation by the county treasurer as provided in	4603
section 5709.42 of the Revised Code for improvements exempt from	4604
taxation pursuant to an ordinance under section 5709.41 of the	4605
Revised Code. Moneys deposited in the urban redevelopment tax	4606
increment equivalent fund shall be used for such purposes as are	4607
authorized in the resolution or ordinance establishing the fund.	4608
The municipal corporation also may deposit into the urban	4609
redevelopment tax increment equivalent fund municipal income tax	4610
revenue that has been dedicated to fund any of the purposes for	4611
which the fund is established.	4612

(C) A municipal corporation also may distribute money in the	4613
municipal public improvement tax increment equivalent fund or the	4614
urban redevelopment tax increment equivalent fund to any school	4615
district in which the exempt property is located in an amount not	4616
to exceed the amount of real property taxes that such school	4617
district would have received from the improvement if it were not	4618
exempt from taxation or use money in either or both funds to	4619
finance specific public improvements benefiting the school	4620
district. The resolution or ordinance establishing the fund shall	4621
set forth the percentage of such maximum amount that will be	4622
distributed to any affected school district or used to finance	4623
specific public improvements benefiting the school district.	4624

(D) Any incidental surplus remaining in the municipal public	4625
improvement tax increment equivalent fund or an account of that	4626
fund, or in the urban redevelopment tax increment equivalent fund,	4627
upon its dissolution of the account or fund shall be transferred	4628
to the general fund of the municipal corporation.	4629

Sec. 5709.73.  (A) As used in this section and section	4630
5709.74 of the Revised Code:	4631

(1) "Business day" means a day of the week excluding	4632
Saturday, Sunday, and a legal holiday as defined in section 1.14	4633
of the Revised Code.	4634

(2) "Further improvements" or "improvements" means the	4635
increase in the true value of thea parcel of real property in the	4636
unincorporated territory of the townshipthat would first appear	4637
on the tax list and duplicate of real and public utility property	4638
after the effective date of a resolution adopted under division	4639
(B)(1) of this section were it not for the exemption granted by	4640
that resolution. "Further improvements" doesFor purposes of	4641
division (B) of this section, "improvements" do not include any	4642
property used or to be used for residential purposes.	4643

(3) "Housing renovation" means a project carried out for	4644
residential purposes.	4645

(4) "Incentive district" has the same meaning as in section	4646
5709.40 of the Revised Code, except that a blighted area is in the	4647
unincorporated area of a township.	4648

(5) "Project" and "public infrastructure improvement" have	4649
the same meanings as in section 5709.40 of the Revised Code.	4650

(B)(1) A board of township trustees may, by unanimous vote,	4651
adopt a resolution that declares to be a public purpose any public	4652
infrastructure improvements made that are necessary for the	4653
development of certain parcels of land located in the	4654
unincorporated area of the township. Except as otherwise provided	4655
in division (B)(2) or (3)(D) of this section, the resolution may	4656
exempt from real property taxation not more than seventy-five per	4657
cent of further improvements to a parcel of land which directly	4658
benefits from such public infrastructure improvements; the	4659
percentage exempted shall not, except as otherwise provided in	4660
division (B)(2) or (3)(D) of this section, exceed the estimated	4661
percentage of the incremental demand placed on the public	4662
infrastructure improvements that is directly attributable to the	4663
exempted improvement. AFor the purposes of this division, a	4664
public infrastructure improvement directly benefits a tract or	4665
parcel of land only if further improvements made to the tract or	4666
parcel placea project on the parcel places direct, additional	4667
demand on the public infrastructure improvement, or, if the public	4668
infrastructure improvement has not yet been constructed, will	4669
place direct, additional demand on the public infrastructure	4670
improvement when completed. The resolution shall specify the	4671
percentage of the further improvements to be exempted.	4672

(2)(C) A board of township trustees may adopt, by unanimous	4673
vote, a resolution creating an incentive district and declaring	4674
improvements to parcels within the district to be a public purpose	4675
and exempt from taxation as provided in this section. The	4676
district shall be located within the unincorporated area of the	4677
township and shall not include any territory that is included	4678
within a district created under division (B) of section 5709.78 of	4679
the Revised Code. The resolution shall delineate the boundary of	4680
the district and specifically identify each parcel within the	4681
district. A district may not include any parcel that is or has	4682
been exempted from taxation under division (B) of this section or	4683
that is or has been within another district created under this	4684
division. A resolution may create more than one such district,	4685
and more than one resolution may be adopted under this division.	4686

A resolution under this division shall specify the life of	4687
the district and the percentage of the improvements to be exempted	4688
and shall designate the public infrastructure improvements made or	4689
to be made that benefit or serve parcels in the district.	4690

A resolution adopted under this division may authorize the	4691
use of service payments provided for in section 5709.74 of the	4692
Revised Code for the purpose of housing renovations within the	4693
district, provided that the resolution also designates public	4694
infrastructure improvements that benefit or serve the district,	4695
and that a project within the district places real property in use	4696
for commercial or industrial purposes. Service payments may be	4697
used to finance or support loans, deferred loans, and grants to	4698
persons for the purpose of housing renovations within the	4699
district. The resolution shall designate the parcels within the	4700
district that are eligible for housing renovations. The	4701
resolution shall state separately the amount or the percentages of	4702
the expected aggregate service payments that are designated for	4703
each public infrastructure improvement and for the purpose of	4704
housing renovations.	4705

Except with the approval of the board of education of each	4706
city, local, or exempted village school district within the	4707
territory of which the district is or will be located, the life of	4708
a district shall not exceed ten years, and the percentage of	4709
improvements to be exempted shall not exceed seventy-five per	4710
cent. With such approval, the life of a district may be not more	4711
than thirty years, and the percentage of improvements to be	4712
exempted may be not more than one hundred per cent.	4713

Approval of a board of education shall be obtained in the	4714
manner provided in division (D) of this section for exemptions	4715
under division (B) of this section, except that the notice to the	4716
board of education shall delineate the boundaries of the district,	4717
specifically identify each parcel within the district, identify	4718
each anticipated improvement in the district, provide an estimate	4719
of the true value in money of each such improvement, specify the	4720
life of the district and the percentage of improvements that would	4721
be exempted, and indicate the date on which the board of township	4722
trustees intends to adopt the resolution.	4723

A board of township trustees shall not adopt a resolution	4724
under this division after June 30, 2007.	4725

(D) Improvements with respect to a parcel may be exempted	4726
from taxation under division (B) of this section for up to ten	4727
years or, with the approval of the board of education of the city,	4728
local, or exempted village school district within the territory of	4729
which the improvements are or will beparcel is located, for up to	4730
thirty years. The percentage of the improvements exempted from	4731
taxation may, with such approval, exceed seventy-five per cent,	4732
but shall not exceed one hundred per cent. Not later than	4733
forty-five business days prior to adopting a resolution under this	4734
section declaring improvements to be a public purpose, the board	4735
of trustees shall deliver to the board of education a notice	4736
stating its intent to declare improvements to be a public purpose	4737
under this sectionadopt a resolution making that declaration. The	4738
notice shall describeidentify the parcel and the improvements,	4739
provide an estimate of the true value in money of the	4740
improvements, specify the period for which the improvements would	4741
be exempted from taxation and the percentage of the improvements	4742
that would be exempted, and indicate the date on which the board	4743
of trustees intends to adopt the resolution. The board of	4744
education, by resolution adopted by a majority of the board, may	4745
approve the exemption for the period or for the exemption	4746
percentage specified in the notice, may disapprove the exemption	4747
for the number of years in excess of ten, may disapprove the	4748
exemption for the percentage of the improvements to be exempted in	4749
excess of seventy-five per cent, or both, or may approve the	4750
exemption on the condition that the board of trustees and the	4751
board of education negotiate an agreement providing for	4752
compensation to the school district equal in value to a percentage	4753
of the amount of taxes exempted in the eleventh and subsequent	4754
years of the exemption period or, in the case of exemption	4755
percentages in excess of seventy-five per cent, compensation equal	4756
in value to a percentage of the taxes that would be payable on the	4757
portion of the improvements in excess of seventy-five per cent	4758
were that portion to be subject to taxation. The board of	4759
education shall certify its resolution to the board of trustees	4760
not later than fourteen days prior to the date the board of	4761
trustees intends to adopt the resolution as indicated in the	4762
notice. If the board of education approves the exemption on the	4763
condition that a compensation agreement be negotiated, the board	4764
of education in its resolution shall propose a compensation	4765
percentage. If the board of education and the board of trustees	4766
negotiate a mutually acceptable compensation agreement, the	4767
resolution may declare the improvements a public purpose for the	4768
number of years specified in the resolution or, in the case of	4769
exemption percentages in excess of seventy-five per cent, for the	4770
exemption percentage specified in the resolution. In either case,	4771
if the board of education and the board of trustees fail to	4772
negotiate a mutually acceptable compensation agreement, the	4773
resolution may declare the improvements a public purpose for not	4774
more than ten years, but shall not exempt more than seventy-five	4775
per cent of the improvements from taxation, or, in the case of a	4776
resolution adopted under division (B) of this section, not more	4777
than the estimated percentage of the incremental demand as	4778
otherwise permitted underprescribed by division (B)(1) of this	4779
section, whichever isif that percentage is less than seventy-five	4780
per cent. If the board of education fails to certify a resolution	4781
to the board of trustees within the time prescribed by this	4782
section, the board of trustees thereupon may adopt the resolution	4783
and may declare the improvements a public purpose for up to thirty	4784
years or, in the case of exemption percentages proposed in excess	4785
of seventy-five per cent, for the exemption percentage specified	4786
in the resolution. The board of township trustees may adopt the	4787
resolution at any time after the board of education certifies its	4788
resolution approving the exemption to the board of township	4789
trustees, or, if the board of education approves the exemption on	4790
the condition that a mutually acceptable compensation agreement be	4791
negotiated, at any time after the compensation agreement is agreed	4792
to by the board of education and the board of township trustees.	4793

(3) If a board of education has adopted a resolution waiving	4794
its right to approve exemptions from taxation and the resolution	4795
remains in effect, approval of such exemptions by the board of	4796
education is not required under this division (B)(2) of this	4797
section. If a board of education has adopted a resolution	4798
allowing a board of township trustees to deliver the notice	4799
required under this division (B)(2) of this section fewer than	4800
forty-five business days prior to adoption of the resolution by	4801
the board of township trustees, the board of township trustees	4802
shall deliver the notice to the board of education not later than	4803
the number of days prior to such adoption as prescribed by the	4804
board of education in its resolution. If a board of education	4805
adopts a resolution waiving its right to approve exemptions or	4806
shortening the notification period, the board of education shall	4807
certify a copy of the resolution to the board of township	4808
trustees. If the board of education rescinds such a resolution,	4809
it shall certify notice of the rescission to the board of township	4810
trustees.	4811

(4) If the board of trustees is not required by this	4812
division (B)(2) of this section to notify the board of education	4813
of the board of trustees' intent to declare improvements to be a	4814
public purpose, the board of trustees shall comply with the notice	4815
requirements imposed under section 5709.83 of the Revised Code	4816
before taking formal action to adopt the resolution making that	4817
declaration, unless the board of education has adopted a	4818
resolution under that section waiving its right to receive such a	4819
notice.	4820

(C) The(E) An exemption from taxation granted under this	4821
section commences onwith the tax year in which an improvement	4822
first appears on the tax list and duplicate of real and public	4823
utility property and that begins after the effective date of the	4824
resolution and. Except as otherwise provided in this division,	4825
the exemption ends on the date specified in the resolution as the	4826
date the improvement ceases to be a public purpose or the	4827
incentive district expires, or ends on the date on which suchthe	4828
public infrastructure improvements and housing renovations are	4829
paid in full from the township public improvement tax increment	4830
equivalent fund established under section 5709.75 of the Revised	4831
Code, whichever occurs first, unless. An exemption may end on a	4832
later date, as specified in the resolution, if the board of	4833
township trustees and the board of education of the city, local,	4834
or exempted village school district within the territory of which	4835
the exempted improvement is located have entered into a	4836
compensation agreement under section 5709.82 of the Revised Code	4837
with respect to the improvement or district and the board of	4838
education has approved the term of the exemption under division	4839
(B)(2)(D) of this section. If the board of township trustees and	4840
the board of education have entered into such an agreement, the	4841
exemption may end on a date, specified in the resolution, later	4842
than the date on which the improvements are paid in full from the	4843
township public improvement tax increment equivalent fund, but in	4844
no case shall the improvement be exempted from taxation for more	4845
than thirty years. The board of township trustees may, by	4846
majority vote, adopt a resolution which permitspermitting the	4847
township to enter into such agreements as the board finds	4848
necessary or appropriate to provide for the construction or	4849
undertaking of public infrastructure improvements and housing	4850
renovations. Any exemption shall be claimed and allowed in the	4851
same or a similar manner as in the case of other real property	4852
exemptions. If an exemption status changes during a tax year, the	4853
procedure for the apportionment of the taxes for that year is the	4854
same as in the case of other changes in tax exemption status	4855
during the year.	4856

(F) The board of township trustees may issue the notes of	4857
the township to finance all costs pertaining to the construction	4858
or undertaking of public infrastructure improvements and housing	4859
renovations made pursuant to this section. The notes shall be	4860
signed by the board and attested by the signature of the township	4861
clerk, shall bear interest not to exceed the rate provided in	4862
section 9.95 of the Revised Code, and are not subject to Chapter	4863
133. of the Revised Code. The resolution authorizing the issuance	4864
of the notes shall pledge the funds of the township public	4865
improvement tax increment equivalent fund established pursuant to	4866
section 5709.75 of the Revised Code to pay the interest on and	4867
principal of the notes. The notes, which may contain a clause	4868
permitting prepayment at the option of the board, shall be offered	4869
for sale on the open market or given to the vendor or contractor	4870
if no sale is made.	4871

(G) The township, not later than fifteen days after the	4872
adoption of a resolution granting a tax exemption under this	4873
section, shall submit to the director of development a copy of the	4874
resolution. On or before the thirty-first day of March of each	4875
year, the township shall submit a status report to the director of	4876
development outlining. The report shall indicate, in the manner	4877
prescribed by the director, the progress of the project during	4878
each year that the exemption remains in effect, including a	4879
summary of the receipts from service payments in lieu of taxes;	4880
expenditures of money from funds created under section 5709.75 of	4881
the Revised Code; a description of the public infrastructure	4882
improvements and housing renovations financed with such	4883
expenditures; and a quantitative summary of changes in employment	4884
and private investment resulting from each project.	4885

Sec. 5709.74.  A township that has declared an improvement to	4886
be a public purpose under section 5709.73 of the Revised Code may	4887
require the owner of the parcel to make annual service payments in	4888
lieu of taxes to the county treasurer on or before the final dates	4889
for payment of real property taxes. Each payment shall be charged	4890
and collected in the same manner and in the same amount as the	4891
real property taxes that would have been charged and payable	4892
against any improvement made on the parcel if it were not exempt	4893
from taxation. If any reduction in the levies otherwise	4894
applicable to the exempt property is made by the county budget	4895
commission under section 5705.31 of the Revised Code, the amount	4896
of the service payment in lieu of taxes shall be calculated as if	4897
a reduction in levies had not been made. A township shall not	4898
require an owner to make annual service payments in lieu of taxes	4899
pursuant to this section after the date on which the township has	4900
been paid back in full for the public infrastructure improvements	4901
made pursuant to sections 5709.73 to 5709.75 of the Revised Code.	4902

Moneys collected as service payments in lieu of taxes shall	4903
be distributed at the same time and in the same manner as real	4904
property tax payments except that the entire amount so collected	4905
shall be distributed to the township in which the improvement is	4906
located. If a parcel upon which moneys are collected as service	4907
payments in lieu of taxes is annexed to a municipal corporation,	4908
the service payments shall continue to be collected and	4909
distributed to the township in which the parcel was located before	4910
its annexation until the township is paid back in full for the	4911
cost of theany public infrastructure improvements it made on the	4912
parcel. The treasurer shall maintain a record of the service	4913
payments in lieu of taxes made from property in each township.	4914

Nothing in this section or section 5709.73 of the Revised	4915
Code affects the taxes levied against that portion of the value of	4916
any parcel of property that is not exempt from taxation.	4917

Sec. 5709.75.  Any township that receives service payments in	4918
lieu of taxes under section 5709.74 of the Revised Code shall	4919
establish a township public improvement tax increment equivalent	4920
fund, by resolution of the board of township trustees, into which	4921
those payments shall be deposited such payments distributed to the	4922
township by the county treasurer as provided in that section. If	4923
the board of township trustees has adopted a resolution under	4924
division (C) of section 5709.73 of the Revised Code, the township	4925
shall establish at least one account in that fund with respect to	4926
resolutions adopted under division (B) of that section, and one	4927
account with respect to each district created by a resolution	4928
adopted under division (C) of that section. If a resolution	4929
adopted under division (C) of section 5709.73 of the Revised Code	4930
also authorizes the use of service payments for housing	4931
renovations within the district, the township shall establish	4932
separate accounts for the service payments designated for public	4933
infrastructure improvements and for the service payments	4934
authorized for the purpose of housing renovations. Moneys	4935
deposited in an account of that fund shall be used by the township	4936
to pay the costs of public infrastructure improvements made	4937
pursuant to section 5709.73 of the Revised Codedesignated in or	4938
the housing renovations authorized by the resolution with respect	4939
to which the account is established, including any interest on and	4940
principal of the notes; in the case of an account established with	4941
respect to a resolution adopted under division (C) of that	4942
section, money in the account shall be used to finance the public	4943
infrastructure improvements designated, or the housing renovations	4944
authorized, for each district created in the resolution. Money in	4945
an account shall not be used to finance or support housing	4946
renovations that take place after the district has expired. The	4947
township may also distribute money in the fundsuch an account to	4948
any school district in which the exempt property is located in an	4949
amount not to exceed the amount of real property taxes that such	4950
school district would have received from the improvement if it	4951
were not exempt from taxation. The resolution establishing the	4952
fund shall set forth the percentage of such maximum amount that	4953
will be distributed to any affected school district. Any	4954
incidental surplus remaining in the township public improvement	4955
tax increment equivalent fund or an account of that fund upon its	4956
dissolution of the account or fund shall be transferred to the	4957
general fund of the township.	4958

Sec. 5709.77.  As used in sections 5709.77 to 5709.81 of the	4959
Revised Code:	4960

(A) "Business day" means a day of the week excluding	4961
Saturday, Sunday, and a legal holiday as defined in section 1.14	4962
of the Revised Code.	4963

(A)(B) "Fund" means to provide for the payment of the debt	4964
service on and the expenses relating to an outstanding obligation	4965
of the county.	4966

(C) "Housing renovation" means a project carried out for	4967
residential purposes.	4968

(B)(D) "Improvement" means the increase in the true value of	4969
anya parcel of real property subsequent tothat would first	4970
appear on the tax list and duplicate of real and public utility	4971
property after the effective date of a resolution adopted under	4972
section 5709.78 of the Revised Code were it not for the exemption	4973
granted by that resolution. "Improvement" does not include any	4974
property used or to be used for residential purposes, or a public	4975
infrastructure improvement. For purposes of division (A) of	4976
section 5709.78 of the Revised Code, "improvement" does not	4977
include any property used or to be used for residential purposes.	4978

(E) "Incentive district" has the same meaning as in section	4979
5709.40 of the Revised Code, except that a blighted area is in the	4980
unincorporated territory of a county.	4981

(C)(F) "Refund" means to fund and retire an outstanding	4982
obligation of the county.	4983

(D) "Tract" means a parcel of real property some percentage	4984
of the increase in value of which after the effective date of a	4985
resolution adopted under section 5709.78 of the Revised Code is	4986
exempted from real property taxation under that resolution.	4987

(E) "Business day" means a day of the week excluding	4988
Saturday, Sunday, and a legal holiday as defined in section 1.14	4989
of the Revised Code.	4990

(G) "Project" and "public infrastructure improvement" have	4991
the same meanings as in section 5709.40 of the Revised Code.	4992

Sec. 5709.78.  (A)(1) A board of county commissioners may,	4993
by resolution, declare improvements to a parcelcertain parcels of	4994
real property located in the unincorporated territory of the	4995
county to be a public purpose. Except as otherwise provided in	4996
division (A)(2) or (3)(C) of this section, not more than	4997
seventy-five per cent of an improvement thus declared to be a	4998
public purpose may be exempted from real property taxation; the	4999
percentage exempted shall not, except as otherwise provided in	5000
those divisions, exceed the estimated percentage of the	5001
incremental demand placed on the public infrastructure	5002
improvements that is directly attributable to the exempted	5003
improvement. The resolution shall specify the percentage of the	5004
improvement to be exempted.	5005

(2)A resolution adopted under this division shall designate	5006
the specific public infrastructure improvements made, to be made,	5007
or in the process of being made by the county that directly	5008
benefit, or that once made will directly benefit, a parcel. For	5009
the purposes of this division, a public infrastructure improvement	5010
directly benefits a parcel only if a project on the parcel places	5011
direct, additional demand on the public infrastructure improvement	5012
or, if the public infrastructure improvement has not yet been	5013
completed, will place direct, additional demand on the public	5014
infrastructure improvement once it is completed. The service	5015
payments provided for in section 5709.79 of the Revised Code shall	5016
be used to finance the public infrastructure improvements	5017
designated in the resolution.	5018

(B) A board of county commissioners may adopt a resolution	5019
creating an incentive district and declaring improvements to	5020
parcels within the district to be a public purpose and exempt from	5021
taxation as provided in this section. The district shall be	5022
located within the unincorporated territory of the county and	5023
shall not include any territory that is included within a district	5024
created under division (C) of section 5709.73 of the Revised Code.	5025
The resolution shall delineate the boundary of the district and	5026
specifically identify each parcel within the district. A district	5027
may not include any parcel that is or has been exempted from	5028
taxation under division (A) of this section or that is or has been	5029
within another district created under this division. A resolution	5030
may create more than one such district, and more than one	5031
resolution may be adopted under this division.	5032

A resolution under this division shall specify the life of	5033
the district and the percentage of the improvements to be exempted	5034
and shall designate the public infrastructure improvements made or	5035
to be made that benefit or serve parcels in the district.	5036

A resolution adopted under this division may authorize the	5037
use of service payments provided for in section 5709.79 of the	5038
Revised Code for the purpose of housing renovations within the	5039
district, provided that the resolution also designates public	5040
infrastructure improvements that benefit or serve the district,	5041
and that a project within the district places real property in use	5042
for commercial or industrial purposes. Service payments may be	5043
used to finance or support loans, deferred loans, and grants to	5044
persons for the purpose of housing renovations within the	5045
district. The resolution shall designate the parcels within the	5046
district that are eligible for housing renovations. The	5047
resolution shall state separately the amount or the percentages of	5048
the expected aggregate service payments that are designated for	5049
each public infrastructure improvement and for the purpose of	5050
housing renovations.	5051

Except with the approval of the board of education of each	5052
city, local, or exempted village school district within the	5053
territory of which the district is or will be located, the life of	5054
a district shall not exceed ten years, and the percentage of	5055
improvements to be exempted shall not exceed seventy-five per	5056
cent. With such approval, the life of a district may be not more	5057
than thirty years, and the percentage of improvements to be	5058
exempted may be not more than one hundred per cent.	5059

Approval of a board of education shall be obtained in the	5060
manner provided in division (C) of this section for exemptions	5061
under division (A) of this section, except that the notice to the	5062
board of education shall delineate the boundaries of the district,	5063
specifically identify each parcel within the district, identify	5064
each anticipated improvement in the district, provide an estimate	5065
of the true value in money of each such improvement, specify the	5066
life of the district and the percentage of improvements that would	5067
be exempted, and indicate the date on which the board of county	5068
commissioners intends to adopt the resolution.	5069

A board of county commissioners shall not adopt a resolution	5070
under this division after June 30, 2007.	5071

(C)(1) Improvements with respect to a parcel may be	5072
exempted from taxation under division (A) of this section for up	5073
to ten years or, with the approval of the board of education of	5074
the city, local, or exempted village school district within the	5075
territory of which the improvements are or will beparcel is	5076
located, for up to thirty years. The percentage of the	5077
improvements exempted from taxation may, with such approval,	5078
exceed seventy-five per cent, but shall not exceed one hundred per	5079
cent. Not later than forty-five business days prior to adopting a	5080
resolution under this section declaring improvements to be a	5081
public purpose, the board of county commissioners shall deliver to	5082
the board of education a notice stating its intent to declare	5083
improvements to be a public purpose under this sectionadopt a	5084
resolution making that declaration. The notice shall describe	5085
identify the parcel and the improvements, provide an estimate of	5086
the true value in money of the improvements, specify the period	5087
for which the improvements would be exempted from taxation and the	5088
percentage of the improvements that would be exempted, and	5089
indicate the date on which the board of county commissioners	5090
intends to adopt the resolution. The board of education, by	5091
resolution adopted by a majority of the board, may approve the	5092
exemption for the period or for the exemption percentage specified	5093
in the notice, may disapprove the exemption for the number of	5094
years in excess of ten, may disapprove the exemption for the	5095
percentage of the improvements to be exempted in excess of	5096
seventy-five per cent, or both, or may approve the exemption on	5097
the condition that the board of county commissioners and the board	5098
of education negotiate an agreement providing for compensation to	5099
the school district equal in value to a percentage of the amount	5100
of taxes exempted in the eleventh and subsequent years of the	5101
exemption period or, in the case of exemption percentages in	5102
excess of seventy-five per cent, compensation equal in value to a	5103
percentage of the taxes that would be payable on the portion of	5104
the improvements in excess of seventy-five per cent were that	5105
portion to be subject to taxation. The board of education shall	5106
certify its resolution to the board of county commissioners not	5107
later than fourteen days prior to the date the board of county	5108
commissioners intends to adopt its resolution as indicated in the	5109
notice. If the board of education approves the exemption on the	5110
condition that a compensation agreement be negotiated, the board	5111
of education in its resolution shall propose a compensation	5112
percentage. If the board of education and the board of county	5113
commissioners negotiate a mutually acceptable compensation	5114
agreement, the resolution of the board of county commissioners may	5115
declare the improvements a public purpose for the number of years	5116
specified in that resolution or, in the case of exemption	5117
percentages in excess of seventy-five per cent, for the exemption	5118
percentage specified in the resolution. In either case, if the	5119
board of education and the board of county commissioners fail to	5120
negotiate a mutually acceptable compensation agreement, the	5121
resolution may declare the improvements a public purpose for not	5122
more than ten years, but shall not exempt more than seventy-five	5123
per cent of the improvements from taxation, or, in the case of a	5124
resolution adopted under division (A) of this section, not more	5125
than the estimated percentage of the incremental demand as	5126
otherwise permitted underprescribed by division (A)(1) of this	5127
section, whicheverif that percentage is less than seventy-five	5128
per cent. If the board of education fails to certify a resolution	5129
to the board of county commissioners within the time prescribed by	5130
this section, the board of county commissioners thereupon may	5131
adopt the resolution and may declare the improvements a public	5132
purpose for up to thirty years or, in the case of exemption	5133
percentages proposed in excess of seventy-five per cent, for the	5134
exemption percentage specified in the resolution. The board of	5135
county commissioners may adopt the resolution at any time after	5136
the board of education certifies its resolution approving the	5137
exemption to the board of county commissioners, or, if the board	5138
of education approves the exemption on the condition that a	5139
mutually acceptable compensation agreement be negotiated, at any	5140
time after the compensation agreement is agreed to by the board of	5141
education and the board of county commissioners.	5142

(3)(2) If a board of education has adopted a resolution	5143
waiving its right to approve exemptions from taxation and the	5144
resolution remains in effect, approval of such exemptions by the	5145
board of education is not required under division (A)(2)(C)(1) of	5146
this section. If a board of education has adopted a resolution	5147
allowing a board of county commissioners to deliver the notice	5148
required under division (B)(2)(C)(1) of this section fewer than	5149
forty-five business days prior to approval of the resolution by	5150
the board of county commissioners, the board of county	5151
commissioners shall deliver the notice to the board of education	5152
not later than the number of days prior to such approval as	5153
prescribed by the board of education in its resolution. If a	5154
board of education adopts a resolution waiving its right to	5155
approve exemptions or shortening the notification period, the	5156
board of education shall certify a copy of the resolution to the	5157
board of county commissioners. If the board of education rescinds	5158
such a resolution, it shall certify notice of the rescission to	5159
the board of county commissioners.	5160

(B) The(D) An exemption from taxation granted under this	5161
section commences onwith the tax year in which an improvement	5162
first appears on the tax list and duplicate of real and public	5163
utility property and that begins after the effective date of the	5164
resolution and. Except as otherwise provided in this division,	5165
the exemption ends on the date specified in the resolution as the	5166
date the improvement ceases to be a public purpose or the	5167
incentive district expires, or ends on the date on which the	5168
county can no longer require annual service payments in lieu of	5169
taxes under section 5709.79 of the Revised Code, whichever occurs	5170
first, unless. An exemption may end on a later date, as specified	5171
in the resolution, if the board of commissioners and the board of	5172
education of the city, local, or exempted village school district	5173
within the territory of which the exempted improvement is located	5174
have entered into a compensation agreement under section 5709.82	5175
of the Revised Code with respect to the improvement or district	5176
and the board of education has approved the term of the exemption	5177
under division (A)(2)(C)(1) of this section. If the board of	5178
commissioners and the board of education have entered into such an	5179
agreement, the exemption may end on a date, specified in the	5180
resolution, later than the date on which the county can no longer	5181
require annual service payments in lieu of taxes, but in no case	5182
shall the improvementsimprovement be exempted from taxation for	5183
more than thirty years. The exemptionExemptions shall be claimed	5184
and allowed in the same or a similar manner as in the case of	5185
other real property exemptions. If an exemption status changes	5186
during a tax year, the procedure for the apportionment of the	5187
taxes for that year is the same as in the case of other changes in	5188
tax exemption status during the year.	5189

(C) A resolution adopted under this section shall designate	5190
specific public infrastructure improvements made, to be made, or	5191
in the process of being made by the county that directly benefit,	5192
or that once made will directly benefit, the tract. A public	5193
improvement directly benefits a tract or parcel of land only if	5194
improvements made to the tract or parcel place direct, additional	5195
demand on the public improvement, or, if the public improvement	5196
has not yet been constructed, will place direct, additional demand	5197
on the public improvement when completed. The service payments	5198
provided for in section 5709.79 of the Revised Code shall be used	5199
to finance the public infrastructure improvements designated in	5200
the resolution. Additional county financing of the public	5201
infrastructure improvements may be provided by any methods that	5202
counties are otherwise permitted to use for financing such	5203
improvements.	5204

(D)(E) If the board of county commissioners is not required	5205
by division (A)(2) of this section to notify the board of	5206
education of the board of county commissioners' intent to declare	5207
improvements to be a public purpose, the board of county	5208
commissioners shall comply with the notice requirements imposed	5209
under section 5709.83 of the Revised Code before taking formal	5210
action to adopt the resolution making that declaration, unless the	5211
board of education has adopted a resolution under that section	5212
waiving its right to receive such a notice.	5213

(E)(F) The county, not later than fifteen days after the	5214
adoption of a resolution granting a tax exemption under this	5215
section, shall submit to the director of development a copy of the	5216
resolution. On or before the thirty-first day of March of each	5217
year, the county shall submit a status report to the director of	5218
development outlining. The report shall indicate, in the manner	5219
prescribed by the director, the progress of the project during	5220
each year that thean exemption remains in effect, including a	5221
summary of the receipts from service payments in lieu of taxes;	5222
expenditures of money from funds created under section 5709.75 of	5223
the Revised Code; a description of the public infrastructure	5224
improvements and housing renovations financed with such	5225
expenditures; and a quantitative summary of changes in employment	5226
and private investment resulting from each project.	5227

Sec. 5709.79.  A board of county commissioners that adopts a	5228
resolution under section 5709.78 of the Revised Code shall in the	5229
resolution require that the owner of the improvement make annual	5230
service payments in lieu of taxes to the county treasurer on or	5231
before the final dates for payment of real property taxes. Each	5232
such payment shall be charged and collected in the same manner and	5233
in the same amount as the real property taxes that would have been	5234
charged and payable against the improvement if its value were not	5235
exempt from taxation. If any reduction in the levies otherwise	5236
applicable to the improvement is made by the county budget	5237
commission under section 5705.31 of the Revised Code, the amount	5238
of the service payment in lieu of taxes shall be calculated as if	5239
the reduction in levies had not been made.	5240

The county shall not require the owner to make annual service	5241
payments in lieu of taxes pursuant to this section after the date	5242
on which one of the following occurs:	5243

(A) If bonds or notes were not issued under section 307.082	5244
or 5709.81 of the Revised Code for any public infrastructure	5245
improvements benefiting the tractparcel on which the improvement	5246
is located, or for any housing renovations within an incentive	5247
district, and if service payments were not pledged pursuant to	5248
division (B) of section 5709.81 of the Revised Code, the date the	5249
county has collected sufficient money in the applicable account of	5250
the redevelopment tax equivalent fund to pay the cost of	5251
constructing or repairing the public infrastructure improvements	5252
designated in, or the housing renovations authorized by, the	5253
resolution adopted under section 5709.78 of the Revised Code;	5254

(B) If service payments were pledged under division (B) of	5255
section 5709.81 of the Revised Code to secure payment of any	5256
obligation issued to finance the public infrastructure improvement	5257
and housing renovations, the date the purposes for which the	5258
payments were pledged are paid in full;	5259

(C) If bonds or notes were issued under section 307.082 or	5260
5709.81 of the Revised Code, the date the interest on and	5261
principal of such bonds and notes have been paid in full.	5262

Money collected as service payments in lieu of taxes shall be	5263
distributed at the same time and in the same manner as real	5264
property tax payments except that the entire amount so collected	5265
shall be distributed to the county in which the tractparcel is	5266
located. The county treasurer shall maintain a record of the	5267
service payments in lieu of taxes made for each tractparcel. If	5268
a tractparcel upon which moneys are collected as service payments	5269
in lieu of taxes is annexed to a municipal corporation, the	5270
service payments shall continue to be collected and distributed to	5271
the county until the date described in division (A), (B), or (C)	5272
of this section.	5273

Nothing in this section or section 5709.78 of the Revised	5274
Code affects the taxes levied against that portion of the value of	5275
any tractparcel that is not exempt from taxation.	5276

Sec. 5709.80.  The board of county commissioners of a county	5277
that receives service payments in lieu of taxes under section	5278
5709.79 of the Revised Code shall, by resolution, establish a	5279
redevelopment tax equivalent fund into which those payments shall	5280
be deposited service payments distributed to the county by the	5281
county treasurer as provided in that section. Separate accounts	5282
shall be established in the fund for each resolution adopted by	5283
the board of county commissioners under section 5709.78 of the	5284
Revised Code. If the board of county commissioners has adopted a	5285
resolution under division (B) of that section, the county shall	5286
establish an account for each district created in that resolution.	5287
If a resolution adopted under division (B) of section 5709.78 of	5288
the Revised Code also authorizes the use of service payments for	5289
housing renovations within the district, the county shall	5290
establish separate accounts for the service payments designated	5291
for public infrastructure improvements and for the service	5292
payments authorized for the purpose of housing renovations. Moneys	5293
deposited into each account of the fund shall be used by the	5294
county to pay the cost of constructing or repairing the public	5295
infrastructure improvements designated in, or the housing	5296
renovations authorized by, the resolution or district for which	5297
the account is established, to pay the interest on and principal	5298
of bonds or notes issued under division (B) of section 307.082 or	5299
division (A) of section 5709.81 of the Revised Code, or for the	5300
purposes pledged under division (B) of section 5709.81 of the	5301
Revised Code. Money in an account shall not be used to finance or	5302
support housing renovations that take place after the district has	5303
expired. The board of county commissioners may also distribute	5304
money in an account to any school district in which the exempt	5305
property is located in an amount not to exceed the amount of real	5306
property taxes that such school district would have received from	5307
the improvement if it were not exempt from taxation. The	5308
resolution under which an account is established shall set forth	5309
the percentage of such maximum amount that will be distributed to	5310
any affected school district. An account dissolves upon	5311
fulfillment of the purposes for which money in the account canmay	5312
be used. An incidental surplus remaining in an account upon its	5313
dissolution shall be transferred to the general fund of the	5314
county.	5315

Sec. 5709.81.  (A) Upon determination by the board of county	5316
commissioners that such an issuance will be in the county's best	5317
interest, the board may, in the resolution adopted under section	5318
5709.78 of the Revised Code, authorize the issuance of revenue	5319
bonds or notes to refund any general obligation bonds or notes,	5320
any mortgage revenue bonds or notes, or any revenue bonds issued	5321
prior to the effective date of the resolution to finance any	5322
public infrastructure improvement designated in, or the housing	5323
renovations authorized by, the resolution as directly benefiting	5324
the tract of land that is the subject of the resolution. A public	5325
infrastructure improvement directly benefits a tract of land only	5326
if improvements made to the tract place direct, additional demand	5327
on the public infrastructure improvement, or, if the public	5328
infrastructure improvement has not yet been constructed, will	5329
place direct, additional demand on the public infrastructure	5330
improvement when completed.	5331

The resolution shall pledge only the funds of the account of	5332
the county redevelopment tax equivalent fund established for such	5333
public infrastructure improvements and housing renovations, to pay	5334
the interest on and principal of the bonds or notes issued	5335
pursuant to the resolution. The resolution shall specify the	5336
maturity date or dates, the interest payable in accordance with	5337
section 9.95 of the Revised Code, and such other terms to be	5338
included in the bonds or notes as are necessary for their	5339
issuance. The bonds and notes are not subject to Chapter 133. of	5340
the Revised Code.	5341

Any bond or note issued under this division shall be deemed	5342
to be issued for the same purpose as the bond or note that it is	5343
being issued to refund. The proceeds of any bond or note issued	5344
under this division shall be used as determined by the board of	5345
county commissioners to pay the principal amount of the bond or	5346
note being refunded, any redemption premium, and any interest to	5347
redemption or maturity, and any expenses related to the	5348
outstanding obligations considered necessary by the board of	5349
county commissioners for the issuance of the bond or note.	5350

Any bond or note issued to refund any other bond or note	5351
under this division may be issued whether or not such refunded	5352
bond or note was issued subject to call or redemption prior to	5353
maturity.	5354

The authority granted by this division is in addition to and	5355
an alternative for, but not a limitation upon, other	5356
authorizations granted by or pursuant to law or the constitution	5357
for the same or similar purposes.	5358

(B) In lieu of issuing bonds or notes under division (A) of	5359
this section, the board of county commissioners may, in a	5360
resolution adopted under section 5709.78 of the Revised Code,	5361
pledge the service payments collected under section 5709.79 of the	5362
Revised Code to secure payment of any obligation of the county	5363
issued to finance any public infrastructure improvements	5364
designated in the resolution as directly benefiting the tract of	5365
land for which the service payments are paid.	5366

Sec. 5733.06.  The tax hereby charged each corporation	5367
subject to this chapter shall be the greater of the sum of	5368
divisions (A) and (B) of this section, after the reduction, if	5369
any, provided by division (J) of this section, or division (C) of	5370
this section, after the reduction, if any, provided by division	5371
(J) of this section, except that the tax hereby charged each	5372
financial institution subject to this chapter shall be the amount	5373
computed under division (D) of this section:	5374

(A) Except as set forth in division (F) of this section,	5375
five and one-tenth per cent upon the first fifty thousand dollars	5376
of the value of the taxpayer's issued and outstanding shares of	5377
stock as determined under division (B) of section 5733.05 of the	5378
Revised Code;	5379

(B) Except as set forth in division (F) of this section,	5380
eight and one-half per cent upon the value so determined in excess	5381
of fifty thousand dollars; or	5382

(C)(1) Except as otherwise provided under division (G) of	5383
this section, four mills times that portion of the value of the	5384
issued and outstanding shares of stock as determined under	5385
division (C) of section 5733.05 of the Revised Code. For the	5386
purposes of division (C) of this section, division (C)(2) of	5387
section 5733.065, and division (C) of section 5733.066 of the	5388
Revised Code, the value of the issued and outstanding shares of	5389
stock of an eligible corporation for tax year 2003 through tax	5390
year 2007, or of a qualified holding company, is zero.	5391

(2) As used in division (C) of this section, "eligible	5392
corporation" means a person treated as a corporation for federal	5393
income tax purposes that meets all of the following criteria:	5394

(a) The corporation conducts business for an entire taxable	5395
year as a qualified trade or business as defined by division (C)	5396
of section 122.15 of the Revised Code.	5397

(b) The corporation uses more than fifty per cent of the	5398
corporation's assets, based on net book value, that are located in	5399
Ohio solely to conduct activities that constitute a qualified	5400
trade or business as defined by section 122.15 of the Revised	5401
Code.	5402

(c) The corporation has been formed or organized not more	5403
than three years before the report required to be filed by section	5404
5733.02 of the Revised Code is due, without regard to any	5405
extensions.	5406

(d) The corporation is not a related member, as defined in	5407
section 5733.042 of the Revised Code, at any time during the	5408
taxable year with respect to another person treated as a	5409
corporation for federal income tax purposes. A corporation is not	5410
a related member if during the entire taxable year at least	5411
seventy-five per cent of the corporation's stock is owned directly	5412
or through a pass-through entity by individuals, estates, and	5413
grantor trusts, and the individuals, estates, and grantor trusts	5414
do not directly or indirectly own more than twenty per cent of the	5415
value of another person treated as a corporation for federal	5416
income tax purposes that is conducting a qualified trade or	5417
business.	5418

(D) The tax charged each financial institution subject to	5419
this chapter shall be that portion of the value of the issued and	5420
outstanding shares of stock as determined under division (A) of	5421
section 5733.05 of the Revised Code, multiplied by the following	5422
amounts:	5423

(1) For tax years prior to the 1999 tax year, fifteen mills;

5424

(2) For the 1999 tax year, fourteen mills;

5425

(3) For tax year 2000 and thereafter, thirteen mills.

5426

(E) No tax shall be charged from any corporation that has	5427
been adjudicated bankrupt, or for which a receiver has been	5428
appointed, or that has made a general assignment for the benefit	5429
of creditors, except for the portion of the then current tax year	5430
during which the tax commissioner finds such corporation had the	5431
power to exercise its corporate franchise unimpaired by such	5432
proceedings or act. The minimum payment for all corporations	5433
shall be fifty dollars.	5434

The tax charged to corporations under this chapter for the	5435
privilege of engaging in business in this state, which is an	5436
excise tax levied on the value of the issued and outstanding	5437
shares of stock, shall in no manner be construed as prohibiting or	5438
otherwise limiting the powers of municipal corporations, joint	5439
economic development zones created under section 715.691 of the	5440
Revised Code, and joint economic development districts created	5441
under section 715.70 or 715.71 or sections 715.72 to 715.81 of the	5442
Revised Code in this state to impose an income tax on the income	5443
of such corporations.	5444

(F) If two or more taxpayers satisfy the ownership or	5445
control requirements of division (A) of section 5733.052 of the	5446
Revised Code, each such taxpayer shall substitute "the taxpayer's	5447
pro-rata amount" for "fifty thousand dollars" in divisions (A) and	5448
(B) of this section. For purposes of this division, "the	5449
taxpayer's pro-rata amount" is an amount that, when added to the	5450
other such taxpayers' pro-rata amounts, does not exceed fifty	5451
thousand dollars. For the purpose of making that computation, the	5452
taxpayer's pro-rata amount shall not be less than zero. Nothing	5453
in this division derogates from or eliminates the requirement to	5454
make the alternative computation of tax under division (C) of this	5455
section.	5456

(G) The tax liability of any corporation under division (C)	5457
of this section shall not exceed one hundred fifty thousand	5458
dollars.	5459

(H)(1) For the purposes of division (H) of this section,	5460
"exiting corporation" means a corporation that satisfies all of	5461
the following conditions:	5462

(a) The corporation had nexus with or in this state under	5463
the Constitution of the United States during any portion of a	5464
calendar year;	5465

(b) The corporation was not a corporation described in	5466
division (A) of section 5733.01 of the Revised Code on the first	5467
day of January immediately following that calendar year;	5468

(c) The corporation was not a financial institution on the	5469
first day of January immediately following that calendar year;	5470

(d) If the corporation was a transferor as defined in	5471
section 5733.053 of the Revised Code, the corporation's transferee	5472
was not required to add to the transferee's net income the income	5473
of the transferor pursuant to division (B) of that section;	5474

(e) During any portion of that calendar year, or any portion	5475
of the immediately preceding calendar year, the corporation had	5476
net income that was not included in a report filed by the	5477
corporation or its transferee pursuant to section 5733.02,	5478
5733.021, 5733.03, 5733.031, or 5733.053 of the Revised Code;	5479

(f) The corporation would have been subject to the tax	5480
computed under divisions (A), (B), (C), (F), and (G) of this	5481
section if the corporation is assumed to be a corporation	5482
described in division (A) of section 5733.01 of the Revised Code	5483
on the first day of January immediately following the calendar	5484
year to which division (H)(1)(a) of this section refers.	5485

(2) For the purposes of division (H) of this section,	5486
"unreported net income" means net income that was not previously	5487
included in a report filed pursuant to section 5733.02, 5733.021,	5488
5733.03, 5733.031, or 5733.053 of the Revised Code and that was	5489
realized or recognized during the calendar year to which	5490
division (H)(1) of this section refers or the immediately	5491
preceding calendar year.	5492

(3) Each exiting corporation shall pay a tax computed by	5493
first allocating and apportioning the unreported net income	5494
pursuant to division (B) of section 5733.05 and section 5733.051	5495
and, if applicable, section 5733.052 of the Revised Code. The	5496
exiting corporation then shall compute the tax due on its	5497
unreported net income allocated and apportioned to this state by	5498
applying divisions (A), (B), and (F) of this section to that	5499
income.	5500

(4) Divisions (C) and (G) of this section, division (D)(2)	5501
of section 5733.065, and division (C) of section 5733.066 of the	5502
Revised Code do not apply to an exiting corporation, but exiting	5503
corporations are subject to every other provision of this chapter.	5504

(5) Notwithstanding division (B) of section 5733.01 or	5505
sections 5733.02, 5733.021, and 5733.03 of the Revised Code to the	5506
contrary, each exiting corporation shall report and pay the tax	5507
due under division (H) of this section on or before the	5508
thirty-first day of May immediately following the calendar year to	5509
which division (H)(1)(a) of this section refers. The exiting	5510
corporation shall file that report on the form most recently	5511
prescribed by the tax commissioner for the purposes of complying	5512
with sections 5733.02 and 5733.03 of the Revised Code. Upon	5513
request by the corporation, the tax commissioner may extend the	5514
date for filing the report.	5515

(6) If, on account of the application of section 5733.053 of	5516
the Revised Code, net income is subject to the tax imposed by	5517
divisions (A) and (B) of this section, such income shall not be	5518
subject to the tax imposed by division (H)(3) of this section.	5519

(7) The amendments made to division (H) of this section by	5520
Am. Sub. S.B. 287 of the 123rd general assembly do not apply to	5521
any transfer, as defined in section 5733.053 of the Revised Code,	5522
for which negotiations began prior to January 1, 2001, and that	5523
was commenced in and completed during calendar year 2001, unless	5524
the taxpayer makes an election prior to December 31, 2001, to	5525
apply those amendments.	5526

(8) The tax commissioner may adopt rules governing division	5527
(H) of this section.	5528

(I) Any reference in the Revised Code to "the tax imposed by	5529
section 5733.06 of the Revised Code" or "the tax due under section	5530
5733.06 of the Revised Code" includes the taxes imposed under	5531
sections 5733.065 and 5733.066 of the Revised Code.	5532

(J)(1) Division (J) of this section applies solely to a	5533
combined company. Section 5733.057 of the Revised Code shall	5534
apply when calculating the adjustments required by division (J) of	5535
this section.	5536

(2) Subject to division (J)(4) of this section, the total	5537
tax calculated in divisions (A) and (B) of this section shall be	5538
reduced by an amount calculated by multiplying such tax by a	5539
fraction, the numerator of which is the total taxable gross	5540
receipts attributed to providing public utility activity other	5541
than as an electric company under section 5727.03 of the Revised	5542
Code for the year upon which the taxable gross receipts are	5543
measured immediately preceding the tax year, and the denominator	5544
of which is the total gross receipts from all sources for the year	5545
upon which the taxable gross receipts are measured immediately	5546
preceding the tax year. Nothing herein shall be construed to	5547
exclude from the denominator any item of income described in	5548
section 5733.051 of the Revised Code.	5549

(3) Subject to division (J)(4) of this section, the total	5550
tax calculated in division (C) of this section shall be reduced by	5551
an amount calculated by multiplying such tax by the fraction	5552
described in division (J)(2) of this section.	5553

(4) In no event shall the reduction provided by division	5554
(J)(2) or (J)(3) of this section exceed the amount of the excise	5555
tax paid in accordance with section 5727.38 of the Revised Code,	5556
for the year upon which the taxable gross receipts are measured	5557
immediately preceding the tax year.	5558

Sec. 5733.0610. (A) A refundable corporation franchise tax	5559
credit granted by the tax credit authority under section 122.17 of	5560
the Revised Code may be claimed under this chapter, in the order	5561
required under section 5733.98 of the Revised Code. For purposes	5562
of making tax payments under this chapter, taxes equal to the	5563
amount of the refundable credit shall be considered to be paid to	5564
this state on the first day of the tax year. The refundable credit	5565
shall not be claimed for any tax years following the calendar year	5566
in which a relocation of employment positions occurs in violation	5567
of an agreement entered into under section 122.171 of the Revised	5568
Code.	5569

(B) A nonrefundable corporation franchise tax credit	5570
granted by the tax credit authority under section 122.171 of the	5571
Revised Code may be claimed under this chapter, in the order	5572
required under section 5733.98 of the Revised Code.	5573

Sec. 5733.11.  (A) If any corporation required to file a	5574
report under this chapter fails to file the report within the time	5575
prescribed, files an incorrect report, or fails to remit the full	5576
amount of the tax due for the period covered by the report, the	5577
tax commissioner may make an assessment against the corporation	5578
for any deficiency for the period for which the report or tax is	5579
due, based upon any information in the commissioner's possession.	5580

No assessment shall be made or issued against a corporation	5581
more than three years after the later of the final date the report	5582
subject to assessment was required to be filed or the date the	5583
report was filed. Such time limit may be extended if both the	5584
corporation and the commissioner consent in writing to the	5585
extension or if an agreement waiving or extending the time limit	5586
has been entered into pursuant to section 122.171 of the Revised	5587
Code. Any such extension shall extend the three-year time limit	5588
in division (B) of section 5733.12 of the Revised Code for the	5589
same period of time. There shall be no bar or limit to an	5590
assessment against a corporation that fails to file a report	5591
subject to assessment as required by this chapter, or that files a	5592
fraudulent report.	5593

The commissioner shall give the corporation assessed written	5594
notice of the assessment as provided in section 5703.37 of the	5595
Revised Code.	5596

(B) Unless the corporation to which the notice of assessment	5597
is directed files with the commissioner within sixty days after	5598
service thereof, either personally or by certified mail as	5599
provided in section 5703.056 of the Revised Code, a petition for	5600
reassessment in writing, signed by the authorized agent of the	5601
corporation assessed having knowledge of the facts, and makes	5602
payment of the portion of the assessment required by division (E)	5603
of this section, the assessment shall become final, and the amount	5604
of the assessment shall be due and payable from the corporation	5605
assessed to the treasurer of state. The petition shall indicate	5606
the corporation's objections, but additional objections may be	5607
raised in writing if received prior to the date shown on the final	5608
determination by the commissioner.	5609

Unless the petitioner waives a hearing, the commissioner	5610
shall assign a time and place for the hearing on the petition and	5611
notify the petitioner of the time and place of the hearing by	5612
personal service or certified mail, but the commissioner may	5613
continue the hearing from time to time if necessary.	5614

The commissioner may make such correction to the assessment	5615
as the commissioner finds proper. The commissioner shall serve a	5616
copy of the final determination on the petitioner by personal	5617
service or by certified mail, and the commissioner's decision in	5618
the matter shall be final, subject to appeal as provided in	5619
section 5717.02 of the Revised Code. Only objections decided on	5620
the merits by the board of tax appeals or a court shall be given	5621
collateral estoppel or res judicata effect in considering an	5622
application for refund of amounts paid pursuant to the assessment.	5623

(C) After an assessment becomes final, if any portion of the	5624
assessment remains unpaid, including accrued interest, a certified	5625
copy of the commissioner's entry making the assessment final may	5626
be filed in the office of the clerk of the court of common pleas	5627
in the county in which the corporation has an office or place of	5628
business in this state, the county in which the corporation's	5629
statutory agent is located, or Franklin county.	5630

Immediately upon the filing of the entry, the clerk shall	5631
enter a judgment against the corporation assessed in the amount	5632
shown on the entry. The judgment may be filed by the clerk in a	5633
loose-leaf book entitled "special judgments for state corporate	5634
franchise and litter taxes," and shall have the same effect as	5635
other judgments. Execution shall issue upon the judgment upon the	5636
request of the tax commissioner, and all laws applicable to sales	5637
on execution shall apply to sales made under the judgment.	5638

The portion of an assessment not paid within sixty days after	5639
the day the assessment was issued shall bear interest at the rate	5640
per annum prescribed by section 5703.47 of the Revised Code from	5641
the day the tax commissioner issues the assessment until the	5642
assessment is paid. Interest shall be paid in the same manner as	5643
the tax and may be collected by issuing an assessment under this	5644
section.	5645

(D) All money collected under this section shall be	5646
considered as revenue arising from the taxes imposed by this	5647
chapter.	5648

(E) The portion of an assessment which must be paid upon the	5649
filing of a petition for reassessment shall be as follows:	5650

(1) If the sole item objected to is the assessed penalty or	5651
interest, payment of the assessment, including interest but not	5652
penalty, is required;	5653

(2) If the corporation assessed failed to file, prior to the	5654
date of issuance of the assessment, the annual report required by	5655
section 5733.02 of the Revised Code, any amended report required	5656
by division (C) of section 5733.031 of the Revised Code for the	5657
tax year at issue, or any amended report required by division (D)	5658
of section 5733.067 of the Revised Code to indicate a reduction in	5659
the amount of the credit provided under that section, payment of	5660
the assessment, including interest but not penalty, is required;	5661

(3) If the corporation assessed filed, prior to the date of	5662
issuance of the assessment, the annual report required by section	5663
5733.02 of the Revised Code, all amended reports required by	5664
division (C) of section 5733.031 of the Revised Code for the tax	5665
year at issue, and all amended reports required by division (D) of	5666
section 5733.067 of the Revised Code to indicate a reduction in	5667
the amount of the credit provided under that section, and a	5668
balance of the taxes shown due on the reports as computed on the	5669
reports remains unpaid, payment of only that portion of the	5670
assessment representing the unpaid balance of tax and interest is	5671
required;	5672

(4) If the corporation assessed does not dispute that it is	5673
a taxpayer but claims the protections of section 101 of Public Law	5674
86-272, 73 Stat. 555, 15 U.S.C.A. 381, as amended, payment of only	5675
that portion of the assessment representing any balance of taxes	5676
shown due on the corporation's annual report required by section	5677
5733.02 of the Revised Code, as computed on the report, that	5678
remains unpaid, and that represents taxes imposed by division (C)	5679
of section 5733.06, division (C)(2) of section 5733.065, and	5680
division (C) of section 5733.066 of the Revised Code, together	5681
with all related interest, is required;	5682

(5) If none of the conditions specified in divisions (E)(1)	5683
to (4) of this section apply, or if the corporation assessed	5684
disputes that it is a taxpayer, no payment is required.	5685

(F) Notwithstanding the fact that a petition for	5686
reassessment is pending, the corporation may pay all or a portion	5687
of the assessment that is the subject of the petition. The	5688
acceptance of a payment by the treasurer of state does not	5689
prejudice any claim for refund upon final determination of the	5690
petition.	5691

If upon final determination of the petition an error in the	5692
assessment is corrected by the commissioner, upon petition so	5693
filed or pursuant to a decision of the board of tax appeals or any	5694
court to which the determination or decision has been appealed, so	5695
that the amount due from the corporation under the corrected	5696
assessment is less than the portion paid, there shall be issued to	5697
the corporation, its assigns, or legal representative a refund in	5698
the amount of the overpayment as provided by section 5733.12 of	5699
the Revised Code, with interest on that amount as provided by	5700
section 5733.26 of the Revised Code, subject to section 5733.121	5701
of the Revised Code.	5702

Sec. 5733.98.  (A) To provide a uniform procedure for	5703
calculating the amount of tax imposed by section 5733.06 of the	5704
Revised Code that is due under this chapter, a taxpayer shall	5705
claim any credits to which it is entitled in the following order,	5706
except as otherwise provided in section 5733.058 of the Revised	5707
Code:	5708

(1) The credit for taxes paid by a qualifying pass-through	5709
entity allowed under section 5733.0611 of the Revised Code;	5710

(2) The credit for qualifying affiliated groups under	5711
section 5733.068 of the Revised Code;	5712

(3) The subsidiary corporation credit under section 5733.067	5713
of the Revised Code;	5714

(4) The savings and loan assessment credit under section	5715
5733.063 of the Revised Code;	5716

(5) The credit for recycling and litter prevention donations	5717
under section 5733.064 of the Revised Code;	5718

(6) The credit for employers that enter into agreements with	5719
child day-care centers under section 5733.36 of the Revised Code;	5720

(7) The credit for employers that reimburse employee child	5721
day-care expenses under section 5733.38 of the Revised Code;	5722

(8) The credit for maintaining railroad active grade	5723
crossing warning devices under section 5733.43 of the Revised	5724
Code;	5725

(9) The credit for purchases of lights and reflectors under	5726
section 5733.44 of the Revised Code;	5727

(10) The job retention credit under division (B) of section	5728
5733.0610 of the Revised Code;	5729

(11) The credit for manufacturing investments under section	5730
5733.061 of the Revised Code;	5731

(11)(12) The credit for purchases of new manufacturing	5732
machinery and equipment under section 5733.31 or section 5733.311	5733
of the Revised Code;	5734

(12)(13) The second credit for purchases of new	5735
manufacturing machinery and equipment under section 5733.33 of the	5736
Revised Code;	5737

(13)(14) The job training credit under section 5733.42 of	5738
the Revised Code;	5739

(14)(15) The credit for qualified research expenses under	5740
section 5733.351 of the Revised Code;	5741

(15)(16) The enterprise zone credit under section 5709.66 of	5742
the Revised Code;	5743

(16)(17) The credit for the eligible costs associated with a	5744
voluntary action under section 5733.34 of the Revised Code;	5745

(17)(18) The credit for employers that establish on-site	5746
child day-care under section 5733.37 of the Revised Code;	5747

(18)(19) The credit for purchases of qualifying grape	5748
production property under section 5733.32 of the Revised Code;	5749

(19)(20) The export sales credit under section 5733.069 of	5750
the Revised Code;	5751

(20)(21) The credit for research and development and	5752
technology transfer investors under section 5733.35 of the Revised	5753
Code;	5754

(21)(22) The enterprise zone credits under section 5709.65 of	5755
the Revised Code;	5756

(22)(23) The credit for using Ohio coal under section	5757
5733.39 of the Revised Code;	5758

(23)(24) The refundable jobs creation credit under division	5759
(A) of section 5733.0610 of the Revised Code.	5760

(B) For any credit except the refundable jobs creation	5761
credit, the amount of the credit for a tax year shall not exceed	5762
the tax due after allowing for any other credit that precedes it	5763
in the order required under this section. Any excess amount of a	5764
particular credit may be carried forward if authorized under the	5765
section creating that credit.	5766

Sec. 5739.01.  As used in this chapter:

5767

(A) "Person" includes individuals, receivers, assignees,	5768
trustees in bankruptcy, estates, firms, partnerships,	5769
associations, joint-stock companies, joint ventures, clubs,	5770
societies, corporations, the state and its political subdivisions,	5771
and combinations of individuals of any form.	5772

(B) "Sale" and "selling" include all of the following	5773
transactions for a consideration in any manner, whether absolutely	5774
or conditionally, whether for a price or rental, in money or by	5775
exchange, and by any means whatsoever:	5776

(1) All transactions by which title or possession, or both,	5777
of tangible personal property, is or is to be transferred, or a	5778
license to use or consume tangible personal property is or is to	5779
be granted;	5780

(2) All transactions by which lodging by a hotel is or is to	5781
be furnished to transient guests;	5782

(3) All transactions by which:

5783

(a) An item of tangible personal property is or is to be	5784
repaired, except property, the purchase of which would be exempt	5785
from the tax imposed by section 5739.02 of the Revised Code;	5786

(b) An item of tangible personal property is or is to be	5787
installed, except property, the purchase of which would be exempt	5788
from the tax imposed by section 5739.02 of the Revised Code or	5789
property that is or is to be incorporated into and will become a	5790
part of a production, transmission, transportation, or	5791
distribution system for the delivery of a public utility service;	5792

(c) The service of washing, cleaning, waxing, polishing, or	5793
painting a motor vehicle is or is to be furnished;	5794

(d) Industrial laundry cleaning services are or are to be	5795
provided;	5796

(e) Automatic data processing, computer services, or	5797
electronic information services are or are to be provided for use	5798
in business when the true object of the transaction is the receipt	5799
by the consumer of automatic data processing, computer services,	5800
or electronic information services rather than the receipt of	5801
personal or professional services to which automatic data	5802
processing, computer services, or electronic information services	5803
are incidental or supplemental. Notwithstanding any other	5804
provision of this chapter, such transactions that occur between	5805
members of an affiliated group are not sales. An affiliated group	5806
means two or more persons related in such a way that one person	5807
owns or controls the business operation of another member of the	5808
group. In the case of corporations with stock, one corporation	5809
owns or controls another if it owns more than fifty per cent of	5810
the other corporation's common stock with voting rights.	5811

(f) Telecommunications service is provided that originates	5812
or terminates in this state and is charged in the records of the	5813
telecommunications service vendor to the consumer's telephone	5814
number or account in this state, or that both originates and	5815
terminates in this state; but does not include transactions by	5816
which telecommunications service is paid for by using a prepaid	5817
authorization number or prepaid telephone calling card, or by	5818
which local telecommunications service is obtained from a	5819
coin-operated telephone and paid for by using coin;	5820

(g) Landscaping and lawn care service is or is to be	5821
provided;	5822

(h) Private investigation and security service is or is to	5823
be provided;	5824

(i) Information services or tangible personal property is	5825
provided or ordered by means of a nine hundred telephone call;	5826

(j) Building maintenance and janitorial service is or is to	5827
be provided;	5828

(k) Employment service is or is to be provided;

5829

(l) Employment placement service is or is to be provided;

5830

(m) Exterminating service is or is to be provided;

5831

(n) Physical fitness facility service is or is to be	5832
provided;	5833

(o) Recreation and sports club service is or is to be	5834
provided.	5835

(4) All transactions by which printed, imprinted,	5836
overprinted, lithographic, multilithic, blueprinted, photostatic,	5837
or other productions or reproductions of written or graphic matter	5838
are or are to be furnished or transferred;	5839

(5) The production or fabrication of tangible personal	5840
property for a consideration for consumers who furnish either	5841
directly or indirectly the materials used in the production of	5842
fabrication work; and include the furnishing, preparing, or	5843
serving for a consideration of any tangible personal property	5844
consumed on the premises of the person furnishing, preparing, or	5845
serving such tangible personal property. Except as provided in	5846
section 5739.03 of the Revised Code, a construction contract	5847
pursuant to which tangible personal property is or is to be	5848
incorporated into a structure or improvement on and becoming a	5849
part of real property is not a sale of such tangible personal	5850
property. The construction contractor is the consumer of such	5851
tangible personal property, provided that the sale and	5852
installation of carpeting, the sale and installation of	5853
agricultural land tile, the sale and erection or installation of	5854
portable grain bins, or the provision of landscaping and lawn care	5855
service and the transfer of property as part of such service is	5856
never a construction contract. The transfer of copyrighted motion	5857
picture films for exhibition purposes is not a sale, except such	5858
films as are used solely for advertising purposes. Other than as	5859
provided in this section, "sale" and "selling" do not include	5860
professional, insurance, or personal service transactions that	5861
involve the transfer of tangible personal property as an	5862
inconsequential element, for which no separate charges are made.	5863

As used in division (B)(5) of this section:

5864

(a) "Agricultural land tile" means fired clay or concrete	5865
tile, or flexible or rigid perforated plastic pipe or tubing,	5866
incorporated or to be incorporated into a subsurface drainage	5867
system appurtenant to land used or to be used directly in	5868
production by farming, agriculture, horticulture, or floriculture.	5869
The term does not include such materials when they are or are to	5870
be incorporated into a drainage system appurtenant to a building	5871
or structure even if the building or structure is used or to be	5872
used in such production.	5873

(b) "Portable grain bin" means a structure that is used or	5874
to be used by a person engaged in farming or agriculture to	5875
shelter the person's grain and that is designed to be disassembled	5876
without significant damage to its component parts.	5877

(6) All transactions in which all of the shares of stock of	5878
a closely held corporation are transferred, if the corporation is	5879
not engaging in business and its entire assets consist of boats,	5880
planes, motor vehicles, or other tangible personal property	5881
operated primarily for the use and enjoyment of the shareholders;	5882

(7) All transactions in which a warranty, maintenance or	5883
service contract, or similar agreement by which the vendor of the	5884
warranty, contract, or agreement agrees to repair or maintain the	5885
tangible personal property of the consumer is or is to be	5886
provided;	5887

(8) All transactions by which a prepaid authorization number	5888
or a prepaid telephone calling card is or is to be transferred.	5889

(C) "Vendor" means the person providing the service or by	5890
whom the transfer effected or license given by a sale is or is to	5891
be made or given and, for sales described in division (B)(3)(i) of	5892
this section, the telecommunications service vendor that provides	5893
the nine hundred telephone service; if two or more persons are	5894
engaged in business at the same place of business under a single	5895
trade name in which all collections on account of sales by each	5896
are made, such persons shall constitute a single vendor.	5897

Physicians, dentists, hospitals, and veterinarians who are	5898
engaged in selling tangible personal property as received from	5899
others, such as eyeglasses, mouthwashes, dentifrices, or similar	5900
articles, are vendors. Veterinarians who are engaged in	5901
transferring to others for a consideration drugs, the dispensing	5902
of which does not require an order of a licensed veterinarian or	5903
physician under federal law, are vendors.	5904

(D)(1) "Consumer" means the person for whom the service is	5905
provided, to whom the transfer effected or license given by a sale	5906
is or is to be made or given, to whom the service described in	5907
division (B)(3)(f) or (i) of this section is charged, or to whom	5908
the admission is granted.	5909

(2) Physicians, dentists, hospitals, and blood banks	5910
operated by nonprofit institutions and persons licensed to	5911
practice veterinary medicine, surgery, and dentistry are consumers	5912
of all tangible personal property and services purchased by them	5913
in connection with the practice of medicine, dentistry, the	5914
rendition of hospital or blood bank service, or the practice of	5915
veterinary medicine, surgery, and dentistry. In addition to being	5916
consumers of drugs administered by them or by their assistants	5917
according to their direction, veterinarians also are consumers of	5918
drugs that under federal law may be dispensed only by or upon the	5919
order of a licensed veterinarian or physician, when transferred by	5920
them to others for a consideration to provide treatment to animals	5921
as directed by the veterinarian.	5922

(3) A person who performs a facility management, or similar	5923
service contract for a contractee is a consumer of all tangible	5924
personal property and services purchased for use in connection	5925
with the performance of such contract, regardless of whether title	5926
to any such property vests in the contractee. The purchase of	5927
such property and services is not subject to the exception for	5928
resale under division (E)(1) of this section.	5929

(4)(a) In the case of a person who purchases printed matter	5930
for the purpose of distributing it or having it distributed to the	5931
public or to a designated segment of the public, free of charge,	5932
that person is the consumer of that printed matter, and the	5933
purchase of that printed matter for that purpose is a sale.	5934

(b) In the case of a person who produces, rather than	5935
purchases, printed matter for the purpose of distributing it or	5936
having it distributed to the public or to a designated segment of	5937
the public, free of charge, that person is the consumer of all	5938
tangible personal property and services purchased for use or	5939
consumption in the production of that printed matter. That person	5940
is not entitled to claim exception under division (E)(8) of this	5941
section for any material incorporated into the printed matter or	5942
any equipment, supplies, or services primarily used to produce the	5943
printed matter.	5944

(c) The distribution of printed matter to the public or to a	5945
designated segment of the public, free of charge, is not a sale to	5946
the members of the public to whom the printed matter is	5947
distributed or to any persons who purchase space in the printed	5948
matter for advertising or other purposes.	5949

(5) A person who makes sales of any of the services listed	5950
in division (B)(3) of this section is the consumer of any tangible	5951
personal property used in performing the service. The purchase of	5952
that property is not subject to the resale exception under	5953
division (E)(1) of this section.	5954

(E) "Retail sale" and "sales at retail" include all sales	5955
except those in which the purpose of the consumer is:	5956

(1) To resell the thing transferred or benefit of the	5957
service provided, by a person engaging in business, in the form in	5958
which the same is, or is to be, received by the person;	5959

(2) To incorporate the thing transferred as a material or a	5960
part, into tangible personal property to be produced for sale by	5961
manufacturing, assembling, processing, or refining, or to use or	5962
consume the thing transferred directly in producing a product for	5963
sale by mining, including without limitation the extraction from	5964
the earth of all substances that are classed geologically as	5965
minerals, production of crude oil and natural gas, farming,	5966
agriculture, horticulture, or floriculture, and persons engaged in	5967
rendering farming, agricultural, horticultural, or floricultural	5968
services, and services in the exploration for, and production of,	5969
crude oil and natural gas, for others are deemed engaged directly	5970
in farming, agriculture, horticulture, and floriculture, or	5971
exploration for, and production of, crude oil and natural gas;	5972
directly in the rendition of a public utility service, except that	5973
the sales tax levied by section 5739.02 of the Revised Code shall	5974
be collected upon all meals, drinks, and food for human	5975
consumption sold upon Pullman and railroad coaches. This	5976
paragraph does not exempt or except from "retail sale" or "sales	5977
at retail" the sale of tangible personal property that is to be	5978
incorporated into a structure or improvement to real property.	5979

(3) To hold the thing transferred as security for the	5980
performance of an obligation of the vendor;	5981

(4) To use or consume the thing transferred in the process	5982
of reclamation as required by Chapters 1513. and 1514. of the	5983
Revised Code;	5984

(5) To resell, hold, use, or consume the thing transferred	5985
as evidence of a contract of insurance;	5986

(6) To use or consume the thing directly in commercial	5987
fishing;	5988

(7) To incorporate the thing transferred as a material or a	5989
part into, or to use or consume the thing transferred directly in	5990
the production of, magazines distributed as controlled circulation	5991
publications;	5992

(8) To use or consume the thing transferred in the	5993
production and preparation in suitable condition for market and	5994
sale of printed, imprinted, overprinted, lithographic,	5995
multilithic, blueprinted, photostatic, or other productions or	5996
reproductions of written or graphic matter;	5997

(9) To use the thing transferred, as described in section	5998
5739.011 of the Revised Code, primarily in a manufacturing	5999
operation to produce tangible personal property for sale;	6000

(10) To use the benefit of a warranty, maintenance or	6001
service contract, or similar agreement, as defined in division	6002
(B)(7) of this section, to repair or maintain tangible personal	6003
property, if all of the property that is the subject of the	6004
warranty, contract, or agreement would be exempt on its purchase	6005
from the tax imposed by section 5739.02 of the Revised Code;	6006

(11) To use the thing transferred as qualified research and	6007
development equipment;	6008

(12) To use or consume the thing transferred primarily in	6009
storing, transporting, mailing, or otherwise handling purchased	6010
sales inventory in a warehouse, distribution center, or similar	6011
facility when the inventory is primarily distributed outside this	6012
state to retail stores of the person who owns or controls the	6013
warehouse, distribution center, or similar facility, to retail	6014
stores of an affiliated group of which that person is a member, or	6015
by means of direct marketing. Division (E)(12) of this section	6016
does not apply to motor vehicles registered for operation on the	6017
public highways. As used in division (E)(12) of this section,	6018
"affiliated group" has the same meaning as in division (B)(3)(e)	6019
of this section and "direct marketing" has the same meaning as in	6020
division (B)(37) of section 5739.02 of the Revised Code.	6021

(13) To use or consume the thing transferred to fulfill a	6022
contractual obligation incurred by a warrantor pursuant to a	6023
warranty provided as a part of the price of the tangible personal	6024
property sold or by a vendor of a warranty, maintenance or service	6025
contract, or similar agreement the provision of which is defined	6026
as a sale under division (B)(7) of this section;	6027

(14) To use or consume the thing transferred in the	6028
production of a newspaper for distribution to the public;	6029

(15) To use tangible personal property to perform a service	6030
listed in division (B)(3) of this section, if the property is or	6031
is to be permanently transferred to the consumer of the service as	6032
an integral part of the performance of the service.	6033

As used in division (E) of this section, "thing" includes all	6034
transactions included in divisions (B)(3)(a), (b), and (e) of this	6035
section.	6036

Sales conducted through a coin-operated device that activates	6037
vacuum equipment or equipment that dispenses water, whether or not	6038
in combination with soap or other cleaning agents or wax, to the	6039
consumer for the consumer's use on the premises in washing,	6040
cleaning, or waxing a motor vehicle, provided no other personal	6041
property or personal service is provided as part of the	6042
transaction, are not retail sales or sales at retail.	6043

(F) "Business" includes any activity engaged in by any	6044
person with the object of gain, benefit, or advantage, either	6045
direct or indirect. "Business" does not include the activity of a	6046
person in managing and investing the person's own funds.	6047

(G) "Engaging in business" means commencing, conducting, or	6048
continuing in business, and liquidating a business when the	6049
liquidator thereof holds itself out to the public as conducting	6050
such business. Making a casual sale is not engaging in business.	6051

(H)(1) "Price," except as provided in divisions (H)(2) and	6052
(3) of this section, means the aggregate value in money of	6053
anything paid or delivered, or promised to be paid or delivered,	6054
in the complete performance of a retail sale, without any	6055
deduction on account of the cost of the property sold, cost of	6056
materials used, labor or service cost, interest, discount paid or	6057
allowed after the sale is consummated, or any other expense. If	6058
the retail sale consists of the rental or lease of tangible	6059
personal property, "price" means the aggregate value in money of	6060
anything paid or delivered, or promised to be paid or delivered,	6061
in the complete performance of the rental or lease, without any	6062
deduction for tax, interest, labor or service charge, damage	6063
liability waiver, termination or damage charge, discount paid or	6064
allowed after the lease is consummated, or any other expense. The	6065
Except as provided in division (H)(4) of this section, the sales	6066
tax shall be calculated and collected by the lessor on each	6067
payment made by the lessee. Price does not include the	6068
consideration received as a deposit refundable to the consumer	6069
upon return of a beverage container, the consideration received as	6070
a deposit on a carton or case that is used for such returnable	6071
containers, or the consideration received as a refundable security	6072
deposit for the use of tangible personal property to the extent	6073
that it actually is refunded, if the consideration for such	6074
refundable deposit is separately stated from the consideration	6075
received or to be received for the tangible personal property	6076
transferred in the retail sale. Such separation must appear in	6077
the sales agreement or on the initial invoice or initial billing	6078
rendered by the vendor to the consumer. Price is the amount	6079
received inclusive of the tax, provided the vendor establishes to	6080
the satisfaction of the tax commissioner that the tax was added to	6081
the price. When the price includes both a charge for tangible	6082
personal property and a charge for providing a service and the	6083
sale of the property and the charge for the service are separately	6084
taxable, or have a separately determinable tax status, the price	6085
shall be separately stated for each such charge so the tax can be	6086
correctly computed and charged.	6087

The tax collected by the vendor from the consumer under this	6088
chapter is not part of the price, but is a tax collection for the	6089
benefit of the state and of counties levying an additional sales	6090
tax pursuant to section 5739.021 or 5739.026 of the Revised Code	6091
and of transit authorities levying an additional sales tax	6092
pursuant to section 5739.023 of the Revised Code. Except for the	6093
discount authorized in section 5739.12 of the Revised Code, no	6094
person other than the state or such a county or transit authority	6095
shall derive any benefit from the collection or payment of such	6096
tax.	6097

(2) In the case of a sale of any new motor vehicle by a new	6098
motor vehicle dealer, as defined in section 4517.01 of the Revised	6099
Code, in which another motor vehicle is accepted by the dealer as	6100
part of the consideration received, "price" has the same meaning	6101
as in division (H)(1) of this section, reduced by the credit	6102
afforded the consumer by the dealer for the motor vehicle received	6103
in trade.	6104

(3) In the case of a sale of any watercraft or outboard	6105
motor by a watercraft dealer licensed in accordance with section	6106
1547.543 of the Revised Code, in which another watercraft,	6107
watercraft and trailer, or outboard motor is accepted by the	6108
dealer as part of the consideration received, "price" has the same	6109
meaning as in division (H)(1) of this section, reduced by the	6110
credit afforded the consumer by the dealer for the watercraft,	6111
watercraft and trailer, or outboard motor received in trade. As	6112

(4) In the case of the sale or lease of any passenger car,	6113
noncommercial motor vehicle, recreational vehicle, watercraft,	6114
outboard motor, or aircraft, the sales tax shall be collected by	6115
the lessor at the time the sale is consummated and shall be	6116
calculated by the lessor on the basis of the total amount to be	6117
paid by the lessee under the lease agreement. In the case of an	6118
open-end lease, the sales tax shall be calculated by the lessor on	6119
the basis of the total amount to be paid during the initial fixed	6120
term of the lease, and then for each subsequent renewal period as	6121
it comes due.	6122

As used in divisiondivisions (H)(3) and (4) of this section,	6123
"passenger car," "noncommercial motor vehicle," and "recreational	6124
vehicle" have the same meanings as in section 4501.01 of the	6125
Revised Code, and "watercraft" includes an outdrive unit attached	6126
to the watercraft.	6127

(I) "Receipts" means the total amount of the prices of the	6128
sales of vendors, provided that cash discounts allowed and taken	6129
on sales at the time they are consummated are not included, minus	6130
any amount deducted as a bad debt pursuant to section 5739.121 of	6131
the Revised Code. "Receipts" does not include the sale price of	6132
property returned or services rejected by consumers when the full	6133
sale price and tax are refunded either in cash or by credit.	6134

(J) "Place of business" means any location at which a person	6135
engages in business.	6136

(K) "Premises" includes any real property or portion thereof	6137
upon which any person engages in selling tangible personal	6138
property at retail or making retail sales and also includes any	6139
real property or portion thereof designated for, or devoted to,	6140
use in conjunction with the business engaged in by such person.	6141

(L) "Casual sale" means a sale of an item of tangible	6142
personal property that was obtained by the person making the	6143
sale, through purchase or otherwise, for the person's own use in	6144
this state and was previously subject to any state's taxing	6145
jurisdiction on its sale or use, and includes such items acquired	6146
for the seller's use that are sold by an auctioneer employed	6147
directly by the person for such purpose, provided the location of	6148
such sales is not the auctioneer's permanent place of business. As	6149
used in this division, "permanent place of business" includes any	6150
location where such auctioneer has conducted more than two	6151
auctions during the year.	6152

(M) "Hotel" means every establishment kept, used,	6153
maintained, advertised, or held out to the public to be a place	6154
where sleeping accommodations are offered to guests, in which five	6155
or more rooms are used for the accommodation of such guests,	6156
whether the rooms are in one or several structures.	6157

(N) "Transient guests" means persons occupying a room or	6158
rooms for sleeping accommodations for less than thirty consecutive	6159
days.	6160

(O) "Making retail sales" means the effecting of	6161
transactions wherein one party is obligated to pay the price and	6162
the other party is obligated to provide a service or to transfer	6163
title to or possession of the item sold. "Making retail sales"	6164
does not include the preliminary acts of promoting or soliciting	6165
the retail sales, other than the distribution of printed matter	6166
which displays or describes and prices the item offered for sale,	6167
nor does it include delivery of a predetermined quantity of	6168
tangible personal property or transportation of property or	6169
personnel to or from a place where a service is performed,	6170
regardless of whether the vendor is a delivery vendor.	6171

(P) "Used directly in the rendition of a public utility	6172
service" means that property which is to be incorporated into and	6173
will become a part of the consumer's production, transmission,	6174
transportation, or distribution system and that retains its	6175
classification as tangible personal property after such	6176
incorporation; fuel or power used in the production, transmission,	6177
transportation, or distribution system; and tangible personal	6178
property used in the repair and maintenance of the production,	6179
transmission, transportation, or distribution system, including	6180
only such motor vehicles as are specially designed and equipped	6181
for such use. Tangible personal property and services used	6182
primarily in providing highway transportation for hire are not	6183
used in providing a public utility service as defined in this	6184
division.	6185

(Q) "Refining" means removing or separating a desirable	6186
product from raw or contaminated materials by distillation or	6187
physical, mechanical, or chemical processes.	6188

(R) "Assembly" and "assembling" mean attaching or fitting	6189
together parts to form a product, but do not include packaging a	6190
product.	6191

(S) "Manufacturing operation" means a process in which	6192
materials are changed, converted, or transformed into a different	6193
state or form from which they previously existed and includes	6194
refining materials, assembling parts, and preparing raw materials	6195
and parts by mixing, measuring, blending, or otherwise committing	6196
such materials or parts to the manufacturing process.	6197
"Manufacturing operation" does not include packaging.	6198

(T) "Fiscal officer" means, with respect to a regional	6199
transit authority, the secretary-treasurer thereof, and with	6200
respect to a county that is a transit authority, the fiscal	6201
officer of the county transit board if one is appointed pursuant	6202
to section 306.03 of the Revised Code or the county auditor if the	6203
board of county commissioners operates the county transit system.	6204

(U) "Transit authority" means a regional transit authority	6205
created pursuant to section 306.31 of the Revised Code or a county	6206
in which a county transit system is created pursuant to section	6207
306.01 of the Revised Code. For the purposes of this chapter, a	6208
transit authority must extend to at least the entire area of a	6209
single county. A transit authority that includes territory in	6210
more than one county must include all the area of the most	6211
populous county that is a part of such transit authority. County	6212
population shall be measured by the most recent census taken by	6213
the United States census bureau.	6214

(V) "Legislative authority" means, with respect to a	6215
regional transit authority, the board of trustees thereof, and	6216
with respect to a county that is a transit authority, the board	6217
of county commissioners.	6218

(W) "Territory of the transit authority" means all of the	6219
area included within the territorial boundaries of a transit	6220
authority as they from time to time exist. Such territorial	6221
boundaries must at all times include all the area of a single	6222
county or all the area of the most populous county that is a part	6223
of such transit authority. County population shall be measured by	6224
the most recent census taken by the United States census bureau.	6225

(X) "Providing a service" means providing or furnishing	6226
anything described in division (B)(3) of this section for	6227
consideration.	6228

(Y)(1)(a) "Automatic data processing" means processing of	6229
others' data, including keypunching or similar data entry services	6230
together with verification thereof, or providing access to	6231
computer equipment for the purpose of processing data.	6232

(b) "Computer services" means providing services consisting	6233
of specifying computer hardware configurations and evaluating	6234
technical processing characteristics, computer programming, and	6235
training of computer programmers and operators, provided in	6236
conjunction with and to support the sale, lease, or operation of	6237
taxable computer equipment or systems.	6238

(c) "Electronic information services" means providing access	6239
to computer equipment by means of telecommunications equipment for	6240
the purpose of either of the following:	6241

(i) Examining or acquiring data stored in or accessible to	6242
the computer equipment;	6243

(ii) Placing data into the computer equipment to be	6244
retrieved by designated recipients with access to the computer	6245
equipment.	6246

(d) "Automatic data processing, computer services, or	6247
electronic information services" shall not include personal or	6248
professional services.	6249

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	6250
section, "personal and professional services" means all services	6251
other than automatic data processing, computer services, or	6252
electronic information services, including but not limited to:	6253

(a) Accounting and legal services such as advice on tax	6254
matters, asset management, budgetary matters, quality control,	6255
information security, and auditing and any other situation where	6256
the service provider receives data or information and studies,	6257
alters, analyzes, interprets, or adjusts such material;	6258

(b) Analyzing business policies and procedures;

6259

(c) Identifying management information needs;

6260

(d) Feasibility studies, including economic and technical	6261
analysis of existing or potential computer hardware or software	6262
needs and alternatives;	6263

(e) Designing policies, procedures, and custom software for	6264
collecting business information, and determining how data should	6265
be summarized, sequenced, formatted, processed, controlled, and	6266
reported so that it will be meaningful to management;	6267

(f) Developing policies and procedures that document how	6268
business events and transactions are to be authorized, executed,	6269
and controlled;	6270

(g) Testing of business procedures;

6271

(h) Training personnel in business procedure applications;

6272

(i) Providing credit information to users of such	6273
information by a consumer reporting agency, as defined in the	6274
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C.	6275
1681a(f), or as hereafter amended, including but not limited to	6276
gathering, organizing, analyzing, recording, and furnishing such	6277
information by any oral, written, graphic, or electronic medium;	6278

(j) Providing debt collection services by any oral, written,	6279
graphic, or electronic means.	6280

The services listed in divisions (Y)(2)(a) to (j) of this	6281
section are not automatic data processing or computer services.	6282

(Z) "Highway transportation for hire" means the	6283
transportation of personal property belonging to others for	6284
consideration by any of the following:	6285

(1) The holder of a permit or certificate issued by this	6286
state or the United States authorizing the holder to engage in	6287
transportation of personal property belonging to others for	6288
consideration over or on highways, roadways, streets, or any	6289
similar public thoroughfare;	6290

(2) A person who engages in the transportation of personal	6291
property belonging to others for consideration over or on	6292
highways, roadways, streets, or any similar public thoroughfare	6293
but who could not have engaged in such transportation on December	6294
11, 1985, unless the person was the holder of a permit or	6295
certificate of the types described in division (Z)(1) of this	6296
section;	6297

(3) A person who leases a motor vehicle to and operates it	6298
for a person described by division (Z)(1) or (2) of this section.	6299

(AA) "Telecommunications service" means the transmission of	6300
any interactive, two-way electromagnetic communications, including	6301
voice, image, data, and information, through the use of any medium	6302
such as wires, cables, microwaves, cellular radio, radio waves,	6303
light waves, or any combination of those or similar media.	6304
"Telecommunications service" includes message toll service even	6305
though the vendor provides the message toll service by means of	6306
wide area transmission type service or private communications	6307
service purchased from another telecommunications service	6308
provider, but does not include any of the following:	6309

(1) Sales of incoming or outgoing wide area transmission	6310
service or wide area transmission type service, including eight	6311
hundred or eight-hundred-type service, to the person contracting	6312
for the receipt of that service;	6313

(2) Sales of private communications service to the person	6314
contracting for the receipt of that service that entitles the	6315
purchaser to exclusive or priority use of a communications channel	6316
or group of channels between exchanges;	6317

(3) Sales of telecommunications service by companies subject	6318
to the excise tax imposed by Chapter 5727. of the Revised Code;	6319

(4) Sales of telecommunications service to a provider of	6320
telecommunications service, including access services, for use in	6321
providing telecommunications service;	6322

(5) Value-added nonvoice services in which computer	6323
processing applications are used to act on the form, content,	6324
code, or protocol of the information to be transmitted;	6325

(6) Transmission of interactive video programming by a cable	6326
television system as defined in section 505.90 of the Revised	6327
Code.	6328

(BB) "Industrial laundry cleaning services" means removing	6329
soil or dirt from or supplying towels, linens, or articles of	6330
clothing that belong to others and are used in a trade or	6331
business.	6332

(CC) "Magazines distributed as controlled circulation	6333
publications" means magazines containing at least twenty-four	6334
pages, at least twenty-five per cent editorial content, issued at	6335
regular intervals four or more times a year, and circulated	6336
without charge to the recipient, provided that such magazines are	6337
not owned or controlled by individuals or business concerns which	6338
conduct such publications as an auxiliary to, and essentially for	6339
the advancement of the main business or calling of, those who own	6340
or control them.	6341

(DD) "Landscaping and lawn care service" means the services	6342
of planting, seeding, sodding, removing, cutting, trimming,	6343
pruning, mulching, aerating, applying chemicals, watering,	6344
fertilizing, and providing similar services to establish, promote,	6345
or control the growth of trees, shrubs, flowers, grass, ground	6346
cover, and other flora, or otherwise maintaining a lawn or	6347
landscape grown or maintained by the owner for ornamentation or	6348
other nonagricultural purpose. However, "landscaping and lawn	6349
care service" does not include the providing of such services by a	6350
person who has less than five thousand dollars in sales of such	6351
services during the calendar year.	6352

(EE) "Private investigation and security service" means the	6353
performance of any activity for which the provider of such service	6354
is required to be licensed pursuant to Chapter 4749. of the	6355
Revised Code, or would be required to be so licensed in performing	6356
such services in this state, and also includes the services of	6357
conducting polygraph examinations and of monitoring or overseeing	6358
the activities on or in, or the condition of, the consumer's home,	6359
business, or other facility by means of electronic or similar	6360
monitoring devices. "Private investigation and security service"	6361
does not include special duty services provided by off-duty police	6362
officers, deputy sheriffs, and other peace officers regularly	6363
employed by the state or a political subdivision.	6364

(FF) "Information services" means providing conversation,	6365
giving consultation or advice, playing or making a voice or other	6366
recording, making or keeping a record of the number of callers,	6367
and any other service provided to a consumer by means of a nine	6368
hundred telephone call, except when the nine hundred telephone	6369
call is the means by which the consumer makes a contribution to a	6370
recognized charity.	6371

(GG) "Research and development" means designing, creating,	6372
or formulating new or enhanced products, equipment, or	6373
manufacturing processes, and conducting scientific or	6374
technological inquiry and experimentation in the physical sciences	6375
with the goal of increasing scientific knowledge which may reveal	6376
the bases for new or enhanced products, equipment, or	6377
manufacturing processes.	6378

(HH) "Qualified research and development equipment" means	6379
capitalized tangible personal property, and leased personal	6380
property that would be capitalized if purchased, used by a person	6381
primarily to perform research and development. Tangible personal	6382
property primarily used in testing, as defined in division (A)(4)	6383
of section 5739.011 of the Revised Code, or used for recording or	6384
storing test results, is not qualified research and development	6385
equipment unless such property is primarily used by the consumer	6386
in testing the product, equipment, or manufacturing process being	6387
created, designed, or formulated by the consumer in the research	6388
and development activity or in recording or storing such test	6389
results.	6390

(II) "Building maintenance and janitorial service" means	6391
cleaning the interior or exterior of a building and any tangible	6392
personal property located therein or thereon, including any	6393
services incidental to such cleaning for which no separate charge	6394
is made. However, "building maintenance and janitorial service"	6395
does not include the providing of such service by a person who has	6396
less than five thousand dollars in sales of such service during	6397
the calendar year.	6398

(JJ) "Employment service" means providing or supplying	6399
personnel, on a temporary or long-term basis, to perform work or	6400
labor under the supervision or control of another, when the	6401
personnel so supplied receive their wages, salary, or other	6402
compensation from the provider of the service. "Employment	6403
service" does not include:	6404

(1) Acting as a contractor or subcontractor, where the	6405
personnel performing the work are not under the direct control of	6406
the purchaser.	6407

(2) Medical and health care services.

6408

(3) Supplying personnel to a purchaser pursuant to a	6409
contract of at least one year between the service provider and the	6410
purchaser that specifies that each employee covered under the	6411
contract is assigned to the purchaser on a permanent basis.	6412

(4) Transactions between members of an affiliated group, as	6413
defined in division (B)(3)(e) of this section.	6414

(KK) "Employment placement service" means locating or	6415
finding employment for a person or finding or locating an employee	6416
to fill an available position.	6417

(LL) "Exterminating service" means eradicating or attempting	6418
to eradicate vermin infestations from a building or structure, or	6419
the area surrounding a building or structure, and includes	6420
activities to inspect, detect, or prevent vermin infestation of a	6421
building or structure.	6422

(MM) "Physical fitness facility service" means all	6423
transactions by which a membership is granted, maintained, or	6424
renewed, including initiation fees, membership dues, renewal fees,	6425
monthly minimum fees, and other similar fees and dues, by a	6426
physical fitness facility such as an athletic club, health spa, or	6427
gymnasium, which entitles the member to use the facility for	6428
physical exercise.	6429

(NN) "Recreation and sports club service" means all	6430
transactions by which a membership is granted, maintained, or	6431
renewed, including initiation fees, membership dues, renewal fees,	6432
monthly minimum fees, and other similar fees and dues, by a	6433
recreation and sports club, which entitles the member to use the	6434
facilities of the organization. "Recreation and sports club"	6435
means an organization that has ownership of, or controls or leases	6436
on a continuing, long-term basis, the facilities used by its	6437
members and includes an aviation club, gun or shooting club, yacht	6438
club, card club, swimming club, tennis club, golf club, country	6439
club, riding club, amateur sports club, or similar organization.	6440

(OO) "Livestock" means farm animals commonly raised for food	6441
or food production, and includes but is not limited to cattle,	6442
sheep, goats, swine, and poultry. "Livestock" does not include	6443
invertebrates, fish, amphibians, reptiles, horses, domestic pets,	6444
animals for use in laboratories or for exhibition, or other	6445
animals not commonly raised for food or food production.	6446

(PP) "Livestock structure" means a building or structure	6447
used exclusively for the housing, raising, feeding, or sheltering	6448
of livestock, and includes feed storage or handling structures and	6449
structures for livestock waste handling.	6450

(QQ) "Horticulture" means the growing, cultivation, and	6451
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	6452
and nursery stock. As used in this division, "nursery stock" has	6453
the same meaning as in section 927.51 of the Revised Code.	6454

(RR) "Horticulture structure" means a building or structure	6455
used exclusively for the commercial growing, raising, or	6456
overwintering of horticultural products, and includes the area	6457
used for stocking, storing, and packing horticultural products	6458
when done in conjunction with the production of those products.	6459

(SS) "Newspaper" means an unbound publication bearing a	6460
title or name that is regularly published, at least as frequently	6461
as biweekly, and distributed from a fixed place of business to the	6462
public in a specific geographic area, and that contains a	6463
substantial amount of news matter of international, national, or	6464
local events of interest to the general public.	6465

(TT) "Professional racing team" means a person that employs	6466
at least twenty full-time employees for the purpose of conducting	6467
a motor vehicle racing business for profit. The person must	6468
conduct the business with the purpose of racing one or more motor	6469
racing vehicles in at least ten competitive professional racing	6470
events each year that comprise all or part of a motor racing	6471
series sanctioned by one or more motor racing sanctioning	6472
organizations. A "motor racing vehicle" means a vehicle for which	6473
the chassis, engine, and parts are designed exclusively for motor	6474
racing, and does not include a stock or production model vehicle	6475
that may be modified for use in racing. For the purposes of this	6476
division:	6477

(1) A "competitive professional racing event" is a motor	6478
vehicle racing event sanctioned by one or more motor racing	6479
sanctioning organizations, at which aggregate cash prizes in	6480
excess of eight hundred thousand dollars are awarded to the	6481
competitors.	6482

(2) "Full-time employee" means an individual who is employed	6483
for consideration for thirty-five or more hours a week, or who	6484
renders any other standard of service generally accepted by custom	6485
or specified by contract as full-time employment.	6486

(UU)(1) "Prepaid authorization number" means a numeric or	6487
alphanumeric combination that represents a prepaid account that	6488
can be used by the account holder solely to obtain	6489
telecommunications service, and includes any renewals or increases	6490
in the prepaid account.	6491

(2) "Prepaid telephone calling card" means a tangible item	6492
that contains a prepaid authorization number that can be used	6493
solely to obtain telecommunications service, and includes any	6494
renewals or increases in the prepaid account.	6495

Sec. 5741.01.  As used in this chapter:

6496

(A) "Person" includes individuals, receivers, assignees,	6497
trustees in bankruptcy, estates, firms, partnerships,	6498
associations, joint-stock companies, joint ventures, clubs,	6499
societies, corporations, business trusts, governments, and	6500
combinations of individuals of any form.	6501

(B) "Storage" means and includes any keeping or retention in	6502
this state for use or other consumption in this state.	6503

(C) "Use" means and includes the exercise of any right or	6504
power incidental to the ownership of the thing used. A thing is	6505
also "used" in this state if its consumer gives or otherwise	6506
distributes it, without charge, to recipients in this state.	6507

(D) "Purchase" means acquired or received for a	6508
consideration, whether such acquisition or receipt was effected by	6509
a transfer of title, or of possession, or of both, or a license to	6510
use or consume; whether such transfer was absolute or conditional,	6511
and by whatever means the transfer was effected; and whether the	6512
consideration was money, credit, barter, or exchange. Purchase	6513
includes production, even though the article produced was used,	6514
stored, or consumed by the producer. The transfer of copyrighted	6515
motion picture films for exhibition purposes is not a purchase,	6516
except such films as are used solely for advertising purposes.	6517

(E) "Seller" means the person from whom a purchase is made,	6518
and includes every person engaged in this state or elsewhere in	6519
the business of selling tangible personal property or providing a	6520
service for storage, use, or other consumption or benefit in this	6521
state; and when, in the opinion of the tax commissioner, it is	6522
necessary for the efficient administration of this chapter, to	6523
regard any salesman, representative, peddler, or canvasser as the	6524
agent of a dealer, distributor, supervisor, or employer under whom	6525
hethe person operates, or from whom hethe person obtains	6526
tangible personal property, sold by himthe person for storage,	6527
use, or other consumption in this state, irrespective of whether	6528
or not hethe person is making such sales on histhe person's own	6529
behalf, or on behalf of such dealer, distributor, supervisor, or	6530
employer, the commissioner may regard himthe person as such	6531
agent, and may regard such dealer, distributor, supervisor, or	6532
employer as the seller. "Seller" does not include any person to	6533
the extent the person provides a communications medium, such as,	6534
but not limited to, newspapers, magazines, radio, television, or	6535
cable television, by means of which sellers solicit purchases of	6536
their goods or services.	6537

(F) "Consumer" means any person who has purchased tangible	6538
personal property or has been provided a service for storage, use,	6539
or other consumption or benefit in this state. "Consumer" does not	6540
include a person who receives, without charge, tangible personal	6541
property or a service.	6542

A person who performs a facility management or similar	6543
service contract for a contractee is a consumer of all tangible	6544
personal property and services purchased for use in connection	6545
with the performance of such contract, regardless of whether title	6546
to any such property vests in the contractee. The purchase of	6547
such property and services is not subject to the exception for	6548
resale under division (E)(1) of section 5739.01 of the Revised	6549
Code.	6550

(G)(1) "Price," except in the case of watercraft, outboard	6551
motors, or new motor vehicles, means the aggregate value in money	6552
of anything paid or delivered, or promised to be paid or	6553
delivered, by a consumer to a seller in the complete performance	6554
of the transaction by which tangible personal property has been	6555
purchased or a service has been provided for storage, use, or	6556
other consumption or benefit in this state, without any deduction	6557
or exclusion on account of the cost of the property sold, cost of	6558
materials used, labor or service cost, interest, discount paid or	6559
allowed after the sale is consummated, or any other expense. If	6560
the transaction consists of the rental or lease of tangible	6561
personal property, "price" means the aggregate value in money of	6562
anything paid or delivered, or promised to be paid or delivered by	6563
the lessee to the lessor, in the complete performance of the	6564
rental or lease, without any deduction or exclusion of tax,	6565
interest, labor or service charge, damage liability waiver,	6566
termination or damage charge, discount paid or allowed after the	6567
lease is consummated, or any other expense. TheExcept as provided	6568
in division (G)(6) of this section, the tax shall be calculated	6569
and collected by the lessor on each payment made by the lessee. If	6570
a consumer produces the tangible personal property used by himthe	6571
consumer, the price is the produced cost of such tangible personal	6572
property. The tax collected by the seller from the consumer under	6573
such sections is not a part of the price, but is a tax collection	6574
for the benefit of the state, and of counties levying an	6575
additional use tax pursuant to section 5741.021 or 5741.023 of the	6576
Revised Code and of transit authorities levying an additional use	6577
tax pursuant to section 5741.022 of the Revised Code and, except	6578
for the discount authorized under section 5741.12 of the Revised	6579
Code, no person other than the state or such a county or transit	6580
authority shall derive any benefit from the collection or payment	6581
of such tax.	6582

(2) In the case of watercraft, outboard motors, or new motor	6583
vehicles, "price" has the same meaning as in division (H) of	6584
section 5739.01 of the Revised Code.	6585

(3) In the case of a nonresident business consumer that	6586
purchases and uses tangible personal property outside this state	6587
and subsequently temporarily stores, uses, or otherwise consumes	6588
such tangible personal property in the conduct of business in this	6589
state, the consumer or the tax commissioner may determine the	6590
price based on the value of the temporary storage, use, or other	6591
consumption, in lieu of determining the price pursuant to division	6592
(G)(1) of this section. A price determination made by the	6593
consumer is subject to review and redetermination by the	6594
commissioner.	6595

(4) In the case of tangible personal property held in this	6596
state as inventory for sale or lease, and that is temporarily	6597
stored, used, or otherwise consumed in a taxable manner, the price	6598
is the value of the temporary use. A price determination made by	6599
the consumer is subject to review and redetermination by the	6600
commissioner.	6601

(5) In the case of tangible personal property originally	6602
purchased and used by the consumer outside this state, and that	6603
becomes permanently stored, used, or otherwise consumed in this	6604
state more than six months after its acquisition by the consumer,	6605
the consumer or the tax commissioner may determine the price based	6606
on the current value of such tangible personal property, in lieu	6607
of determining the price pursuant to division (G)(1) of this	6608
section. A price determination made by the consumer is subject to	6609
review and redetermination by the commissioner.	6610

(6) In the case of the purchase or lease of any passenger	6611
car, noncommercial motor vehicle, recreational vehicle,	6612
watercraft, outboard motor, or aircraft, the tax shall be	6613
collected by the lessor at the time the sale is consummated and	6614
calculated by the lessor on the basis of the total amount to be	6615
paid by the lessee under the lease agreement. In the case of an	6616
open-end lease, the tax shall be calculated by the lessor on the	6617
basis of the total amount to be paid during the initial fixed term	6618
of the lease, and then for each subsequent renewal period as it	6619
comes due. As used in division (G)(6) of this section only,	6620
"passenger car," "noncommercial motor vehicle," and "recreational	6621
vehicle" have the same meanings as in section 4501.01 of the	6622
Revised Code.	6623

(H) "Nexus with this state" means that the seller engages in	6624
continuous and widespread solicitation of purchases from residents	6625
of this state or otherwise purposefully directs its business	6626
activities at residents of this state.	6627

(I) "Substantial nexus with this state" means that the seller	6628
has sufficient contact with this state, in accordance with Section	6629
8 of Article I of the Constitution of the United States, to allow	6630
the state to require the seller to collect and remit use tax on	6631
sales of tangible personal property or services made to consumers	6632
in this state. "Substantial nexus with this state" exists when the	6633
seller does any of the following:	6634

(1) Maintains a place of business within this state, whether	6635
operated by employees or agents of the seller, by a member of an	6636
affiliated group, as described in division (B)(3)(e) of section	6637
5739.01 of the Revised Code, of which the seller is a member, or	6638
by a franchisee using a trade name of the seller;	6639

(2) Regularly has employees, agents, representatives,	6640
solicitors, installers, repairmen, salesmen, or other individuals	6641
in this state for the purpose of conducting the business of the	6642
seller;	6643

(3) Uses a person in this state for the purpose of receiving	6644
or processing orders of the seller's goods or services;	6645

(4) Makes regular deliveries of tangible personal property	6646
into this state by means other than common carrier;	6647

(5) Has membership in an affiliated group, as described in	6648
division (B)(3)(e) of section 5739.01 of the Revised Code, at	6649
least one other member of which has substantial nexus with this	6650
state;	6651

(6) Owns tangible personal property that is rented or leased	6652
to a consumer in this state, or offers tangible personal property,	6653
on approval, to consumers in this state;	6654

(7) Is registered with the secretary of state to do business	6655
in this state or is registered or licensed by any state agency,	6656
board, or commission to transact business in this state or to make	6657
sales to persons in this state;	6658

(8) Has any other contact with this state that would allow	6659
this state to require the seller to collect and remit use tax	6660
under Section 8 of Article I of the Constitution of the United	6661
States.	6662

(J) "Fiscal officer" means, with respect to a regional	6663
transit authority, the secretary-treasurer thereof, and with	6664
respect to a county which is a transit authority, the fiscal	6665
officer of the county transit board appointed pursuant to section	6666
306.03 of the Revised Code or, if the board of county	6667
commissioners operates the county transit system, the county	6668
auditor.	6669

(K) "Territory of the transit authority" means all of the	6670
area included within the territorial boundaries of a transit	6671
authority as they from time to time exist. Such territorial	6672
boundaries must at all times include all the area of a single	6673
county or all the area of the most populous county which is a part	6674
of such transit authority. County population shall be measured by	6675
the most recent census taken by the United States census bureau.	6676

(L) "Transit authority" means a regional transit authority	6677
created pursuant to section 306.31 of the Revised Code or a county	6678
in which a county transit system is created pursuant to section	6679
306.01 of the Revised Code. For the purposes of this chapter, a	6680
transit authority must extend to at least the entire area of a	6681
single county. A transit authority which includes territory in	6682
more than one county must include all the area of the most	6683
populous county which is a part of such transit authority. County	6684
population shall be measured by the most recent census taken by	6685
the United States census bureau.	6686

(M) "Providing a service" has the same meaning as in division	6687
(X) of section 5739.01 of the Revised Code.	6688

(N) "Other consumption" includes receiving the benefits of a	6689
service.	6690

Sec. 5747.058. (A) A refundable income tax credit granted by	6691
the tax credit authority under section 122.17 of the Revised Code	6692
may be claimed under this chapter, in the order required under	6693
section 5747.98 of the Revised Code. For purposes of making tax	6694
payments under this chapter, taxes equal to the amount of the	6695
refundable credit shall be considered to be paid to this state on	6696
the first day of the taxable year. The refundable credit shall not	6697
be claimed for any taxable years ending with or following the	6698
calendar year in which a relocation of employment positions occurs	6699
in violation of an agreement entered into under section 122.171 of	6700
the Revised Code.	6701

(B) A nonrefundable income tax credit granted by the tax	6702
credit authority under section 122.171 of the Revised Code may be	6703
claimed under this chapter, in the order required under section	6704
5747.98 of the Revised Code.	6705

Sec. 5747.13.  (A) If any employer collects the tax imposed	6706
by section 5747.02 or under Chapter 5748. of the Revised Code and	6707
fails to remit the tax as required by law, or fails to collect the	6708
tax, the employer is personally liable for any amount collected	6709
which the employer fails to remit, or any amount which the	6710
employer fails to collect. If any taxpayer fails to file a return	6711
or fails to pay the tax imposed by section 5747.02 or under	6712
Chapter 5748. of the Revised Code, the taxpayer is personally	6713
liable for the amount of the tax.	6714

If any employer, taxpayer, or qualifying entity required to	6715
file a return under this chapter fails to file the return within	6716
the time prescribed, files an incorrect return, fails to remit the	6717
full amount of the taxes due for the period covered by the return,	6718
or fails to remit any additional tax due as a result of a	6719
reduction in the amount of the credit allowed under division (B)	6720
of section 5747.05 of the Revised Code together with interest on	6721
the additional tax within the time prescribed by that division,	6722
the tax commissioner may make an assessment against any person	6723
liable for any deficiency for the period for which the return is	6724
or taxes are due, based upon any information in the commissioner's	6725
possession.	6726

An assessment issued against either the employer or the	6727
taxpayer pursuant to this section shall not be considered an	6728
election of remedies or a bar to an assessment against the other	6729
for failure to report or pay the same tax. No assessment shall be	6730
issued against any person if the tax actually has been paid by	6731
another.	6732

No assessment shall be made or issued against an employer,	6733
taxpayer, or qualifying entity more than four years after the	6734
final date the return subject to assessment was required to be	6735
filed or the date the return was filed, whichever is later.	6736
However, the commissioner may assess any balance due as the result	6737
of a reduction in the credit allowed under division (B) of section	6738
5747.05 of the Revised Code, including applicable penalty and	6739
interest, within four years of the date on which the taxpayer	6740
reports a change in either the portion of the taxpayer's adjusted	6741
gross income subjected to an income tax or tax measured by income	6742
in another state or the District of Columbia or the amount of	6743
liability for an income tax or tax measured by income to another	6744
state or the District of Columbia, as required by division (B)(3)	6745
of section 5747.05 of the Revised Code. Such time limits may be	6746
extended if both the employer, taxpayer, or qualifying entity and	6747
the commissioner consent in writing to the extension or if an	6748
agreement waiving or extending the time limits has been entered	6749
into pursuant to section 122.171 of the Revised Code. Any such	6750
extension shall extend the four-year time limit in division (B) of	6751
section 5747.11 of the Revised Code for the same period of time.	6752
There shall be no bar or limit to an assessment against an	6753
employer for taxes withheld from employees and not remitted to the	6754
state, against an employer, taxpayer, or qualifying entity that	6755
fails to file a return subject to assessment as required by this	6756
chapter, or against an employer, taxpayer, or qualifying entity	6757
that files a fraudulent return.	6758

The commissioner shall give the party assessed written notice	6759
of the assessment as provided in section 5703.37 of the Revised	6760
Code.	6761

(B) Unless the party to whom the notice of assessment is	6762
directed files with the commissioner within sixty days after	6763
service of the notice of assessment, either personally or by	6764
certified mail, a petition for reassessment in writing, signed by	6765
the party assessed, or by the party's authorized agent having	6766
knowledge of the facts and makes payment of the portion of the	6767
assessment required by division (E) of this section, the	6768
assessment shall become final, and the amount of the assessment	6769
shall be due and payable from the party assessed to the	6770
commissioner with remittance made payable to the treasurer of	6771
state. The petition shall indicate the objections of the party	6772
assessed, but additional objections may be raised in writing if	6773
received prior to the date shown on the final determination by the	6774
commissioner.	6775

Unless the petitioner waives a hearing, the commissioner	6776
shall assign a time and place for the hearing on the petition and	6777
notify the petitioner of the time and place of the hearing by	6778
personal service or certified mail, but the commissioner may	6779
continue the hearing from time to time if necessary.	6780

The commissioner may make such correction to an assessment as	6781
the commissioner finds proper. The commissioner shall serve a	6782
copy of a final determination on the petitioner by personal	6783
service or certified mail, and the commissioner's decision in the	6784
matter shall be final, subject to appeal as provided in section	6785
5717.02 of the Revised Code. Only objections decided on the	6786
merits by the board of tax appeals or a court shall be given	6787
collateral estoppel or res judicata effect in considering an	6788
application for refund of amounts paid pursuant to the assessment.	6789

(C) After an assessment becomes final, if any portion of the	6790
assessment remains unpaid, including accrued interest, a certified	6791
copy of the commissioner's entry making the assessment final may	6792
be filed in the office of the clerk of the court of common pleas	6793
in the county in which the employer's, taxpayer's, or qualifying	6794
entity's place of business is located or the county in which the	6795
party assessed resides. If the party assessed is not a resident	6796
of this state, the certified copy of the entry may be filed in the	6797
office of the clerk of the court of common pleas of Franklin	6798
county.	6799

Immediately upon the filing of the entry, the clerk shall	6800
enter a judgment against the party assessed in the amount shown on	6801
the entry. The judgment shall be filed by the clerk in one of two	6802
loose-leaf books, one entitled "special judgments for state and	6803
school district income taxes," and the other entitled "special	6804
judgments for qualifying entity taxes." The judgment shall have	6805
the same effect as other judgments. Execution shall issue upon	6806
the judgment upon the request of the tax commissioner, and all	6807
laws applicable to sales on execution shall apply to sales made	6808
under the judgment.	6809

The portion of the assessment not paid within sixty days	6810
after the assessment was issued shall bear interest at the rate	6811
per annum prescribed by section 5703.47 of the Revised Code from	6812
the day the tax commissioner issues the assessment until it is	6813
paid. Interest shall be paid in the same manner as the tax and	6814
may be collected by the issuance of an assessment under this	6815
section.	6816

(D) All money collected under this section shall be	6817
considered as revenue arising from the taxes imposed by this	6818
chapter or Chapter 5733. or 5748. of the Revised Code, as	6819
appropriate.	6820

(E) The portion of an assessment which must be paid upon the	6821
filing of a petition for reassessment shall be as follows:	6822

(1) If the sole item objected to is the assessed penalty or	6823
interest, payment of the assessment, including interest but not	6824
penalty, is required;	6825

(2) If the taxpayer or qualifying entity that is assessed	6826
failed to file, prior to the date of issuance of the assessment,	6827
the annual return or report required by section 5747.08 or 5747.42	6828
of the Revised Code, any amended return or amended report required	6829
by section 5747.10 or 5747.45 of the Revised Code for the taxable	6830
year at issue, or any report required by division (B) of section	6831
5747.05 of the Revised Code to indicate a reduction in the amount	6832
of the credit provided under that division, payment of the	6833
assessment, including interest but not penalty, is required,	6834
except as otherwise provided under division (E)(6) or (7) of this	6835
section;	6836

(3) If the employer assessed had not filed, prior to the	6837
date of issuance of the assessment, the annual return required by	6838
division (E)(2) of section 5747.07 of the Revised Code covering	6839
the period at issue, payment of the assessment, including interest	6840
but not penalty, is required;	6841

(4) If the taxpayer or qualifying entity that is assessed	6842
filed, prior to the date of issuance of the assessment, the annual	6843
return or report required by section 5747.08 or 5747.42 of the	6844
Revised Code, all amended returns or reports required by section	6845
5747.10 or 5747.45 of the Revised Code for the taxable year at	6846
issue, and all reports required by division (B) of section 5747.05	6847
of the Revised Code to indicate a reduction in the amount of the	6848
credit provided under that division, and a balance of the taxes	6849
shown due on the returns or reports as computed on the returns or	6850
reports remains unpaid, payment of only that portion of the	6851
assessment representing the unpaid balance of tax and interest is	6852
required;	6853

(5) If the employer assessed filed, prior to the date of	6854
issuance of the assessment, the annual return required by division	6855
(E)(2) of section 5747.07 of the Revised Code covering the period	6856
at issue, and a balance of the taxes shown due on the return as	6857
computed on the return remains unpaid, payment of only that	6858
portion of the assessment representing the unpaid balance of tax	6859
and interest is required;	6860

(6) In the case of a party assessed as a qualifying entity	6861
subject to the tax levied under section 5733.41 or 5747.41 of the	6862
Revised Code, if the party does not dispute that it is a	6863
qualifying entity subject to that tax but claims the protections	6864
of section 101 of Public Law 86-272, 73 Stat. 555, 15 U.S.C.A.	6865
381, as amended, no payment is required;	6866

(7) In the case of a party assessed as a qualifying entity	6867
subject to the tax levied under section 5733.41 or 5747.41 of the	6868
Revised Code, if the party does dispute that it is a qualifying	6869
entity subject to that tax, no payment is required;	6870

(8) If none of the conditions specified in divisions (E)(1)	6871
to (7) of this section apply, no payment is required.	6872

(F) Notwithstanding the fact that a petition for	6873
reassessment is pending, the petitioner may pay all or a portion	6874
of the assessment that is the subject of the petition. The	6875
acceptance of a payment by the treasurer of state does not	6876
prejudice any claim for refund upon final determination of the	6877
petition.	6878

If upon final determination of the petition an error in the	6879
assessment is corrected by the commissioner, upon petition so	6880
filed or pursuant to a decision of the board of tax appeals or any	6881
court to which the determination or decision has been appealed, so	6882
that the amount due from the party assessed under the corrected	6883
assessment is less than the portion paid, there shall be issued to	6884
the petitioner or to the petitioner's assigns or legal	6885
representative a refund in the amount of the overpayment as	6886
provided by section 5747.11 of the Revised Code, with interest on	6887
that amount as provided by such section, subject to section	6888
5747.12 of the Revised Code.	6889

Sec. 5747.98.  (A) To provide a uniform procedure for	6890
calculating the amount of tax due under section 5747.02 of the	6891
Revised Code, a taxpayer shall claim any credits to which the	6892
taxpayer is entitled in the following order:	6893

(1) The retirement income credit under division (B) of	6894
section 5747.055 of the Revised Code;	6895

(2) The senior citizen credit under division (C) of section	6896
5747.05 of the Revised Code;	6897

(3) The lump sum distribution credit under division (D) of	6898
section 5747.05 of the Revised Code;	6899

(4) The dependent care credit under section 5747.054 of the	6900
Revised Code;	6901

(5) The lump sum retirement income credit under division (C)	6902
of section 5747.055 of the Revised Code;	6903

(6) The lump sum retirement income credit under division (D)	6904
of section 5747.055 of the Revised Code;	6905

(7) The lump sum retirement income credit under division (E)	6906
of section 5747.055 of the Revised Code;	6907

(8) The credit for displaced workers who pay for job	6908
training under section 5747.27 of the Revised Code;	6909

(9) The campaign contribution credit under section 5747.29	6910
of the Revised Code;	6911

(10) The twenty-dollar personal exemption credit under	6912
section 5747.022 of the Revised Code;	6913

(11) The joint filing credit under division (G) of section	6914
5747.05 of the Revised Code;	6915

(12) The nonresident credit under division (A) of section	6916
5747.05 of the Revised Code;	6917

(13) The credit for a resident's out-of-state income under	6918
division (B) of section 5747.05 of the Revised Code;	6919

(14) The credit for employers that enter into agreements	6920
with child day-care centers under section 5747.34 of the Revised	6921
Code;	6922

(15) The credit for employers that reimburse employee child	6923
day-care expenses under section 5747.36 of the Revised Code;	6924

(16) The credit for adoption of a minor child under section	6925
5747.37 of the Revised Code;	6926

(17) The credit for purchases of lights and reflectors under	6927
section 5747.38 of the Revised Code;	6928

(18) The job retention credit under division (B) of section	6929
5747.058 of the Revised Code;	6930

(19) The credit for manufacturing investments under section	6931
5747.051 of the Revised Code;	6932

(19)(20) The credit for purchases of new manufacturing	6933
machinery and equipment under section 5747.26 or section 5747.261	6934
of the Revised Code;	6935

(20)(21) The second credit for purchases of new	6936
manufacturing machinery and equipment and the credit for using	6937
Ohio coal under section 5747.31 of the Revised Code;	6938

(21)(22) The job training credit under section 5747.39 of	6939
the Revised Code;	6940

(22)(23) The enterprise zone credit under section 5709.66 of	6941
the Revised Code;	6942

(23)(24) The credit for the eligible costs associated with a	6943
voluntary action under section 5747.32 of the Revised Code;	6944

(24)(25) The credit for employers that establish on-site	6945
child day-care centers under section 5747.35 of the Revised Code;	6946

(25)(26) The credit for purchases of qualifying grape	6947
production property under section 5747.28 of the Revised Code;	6948

(26)(27) The export sales credit under section 5747.057 of	6949
the Revised Code;	6950

(27)(28) The credit for research and development and	6951
technology transfer investors under section 5747.33 of the Revised	6952
Code;	6953

(28)(29) The enterprise zone credits under section 5709.65	6954
of the Revised Code;	6955

(29)(30) The refundable jobs creation credit under division	6956
(A) of section 5747.058 of the Revised Code;	6957

(30)(31) The refundable credit for taxes paid by a	6958
qualifying entity granted under section 5747.059 of the Revised	6959
Code;	6960

(31)(32) The refundable credits for taxes paid by a	6961
qualifying pass-through entity granted under division (J) of	6962
section 5747.08 of the Revised Code.	6963

(B) For any credit, except the refundable credits enumerated	6964
in divisions (A)(29), (30), and (31), and (32) of this section and	6965
the credit granted under division (I) of section 5747.08 of the	6966
Revised Code, the amount of the credit for a taxable year shall	6967
not exceed the tax due after allowing for any other credit that	6968
precedes it in the order required under this section. Any excess	6969
amount of a particular credit may be carried forward if authorized	6970
under the section creating that credit. Nothing in this chapter	6971
shall be construed to allow a taxpayer to claim, directly or	6972
indirectly, a credit more than once for a taxable year.	6973

Section 2. That existing sections 122.15, 149.07, 166.03,	6974
183.02, 317.33, 1309.528, 2701.20, 3313.37, 3313.375, 3318.31,	6975
3353.07, 3353.11, 3770.02, 3770.03, 3770.06, 5111.34, 5111.872,	6976
5123.043, 5123.046, 5123.048, 5123.049, 5123.0411, 5126.01,	6977
5126.02, 5126.021, 5126.033, 5126.035, 5126.036, 5126.042,	6978
5126.046, 5126.05, 5126.054, 5126.055, 5126.056, 5126.06, 5126.14,	6979
5126.15, 5126.17, 5126.18, 5126.19, 5126.221, 5126.357, 5705.44,	6980
5709.12, 5709.121, 5709.17, 5709.40, 5709.411, 5709.43, 5709.73,	6981
5709.74, 5709.75, 5709.77, 5709.78, 5709.79, 5709.80, 5709.81,	6982
5733.06, 5733.0610, 5733.11, 5733.98, 5739.01, 5741.01, 5747.058,	6983
5747.13, and 5747.98 of the Revised Code are hereby repealed.	6984

Section 3. On the recommendation of the Director of Mental	6985
Retardation and Developmental Disabilities, the Director of Job	6986
and Family Services may seek one or more Medicaid waivers pursuant	6987
to section 5111.87 of the Revised Code including a waiver under	6988
which home and community-based services are provided in the form	6989
of family support services programs established by county boards	6990
of mental retardation and developmental disabilities under section	6991
5126.11 of the Revised Code. Notwithstanding division (A) of	6992
section 5111.873 of the Revised Code, the Director of Job and	6993
Family Services is not required to adopt rules under that section	6994
by the effective date of the waiver under which home and	6995
community-based services are provided in the form of family	6996
support services programs.	6997

Section 4.  As used in this section, "Residential Facility	6998
Waiver transition" means the transition, due to the upcoming	6999
termination of the Residential Facility Waiver, of individuals who	7000
receive services under the Residential Facility Waiver to other	7001
home and community-based services as defined in section 5126.01 of	7002
the Revised Code.	7003

Consistent with the Medicaid redesign plan that the	7004
Department of Job and Family Services submitted to the Centers for	7005
Medicaid and Medicare Services to comply with an audit conducted	7006
by the centers, the Department of Mental Retardation and	7007
Developmental Disabilities shall develop a plan to implement the	7008
Residential Facilities Waiver transition. The plan shall identify	7009
how the needs of the individuals to be transferred are to be met,	7010
including ways that the Residential Facility Waiver's service	7011
capacity can be reconfigured on a statewide, regional, or county	7012
specific basis. The plan shall also specify the date, which shall	7013
not be later than September 1, 2002, that the moratorium	7014
established under Section 5 of this act is to terminate. The	7015
Department of Mental Retardation and Developmental Disabilities	7016
shall complete the plan in time for the Executive Branch Committee	7017
on Medicaid Redesign and Expansion MRDD Services, created by Am.	7018
Sub. H.B. 94 of the 124th General Assembly, to review the plan and	7019
submit recommended changes to the Department by May 31, 2002. The	7020
Committee shall finish its review and submit suggested changes to	7021
the Department of Mental Retardation and Developmental	7022
Disabilities not later than that date. Not later than sixty days	7023
after the Committee submits suggested changes to the Department,	7024
the Department and the Department of Job and Family Services shall	7025
establish protocols for county boards of mental retardation and	7026
developmental disabilities and private and government entities	7027
under contract with a county board to provide services under the	7028
Residential Facility Waiver to follow in implementing the plan.	7029

The Department of Mental Retardation and Developmental	7030
Disabilities shall identify costs associated with the plan	7031
developed under this section and sources of funding available to	7032
pay the costs.	7033

Not later than February 8, 2002, each county board of mental	7034
retardation and developmental disabilities that has a contract	7035
with one or more private or government entities to provide	7036
services under the Residential Facility Waiver shall jointly	7037
develop a plan with the providers for the implementation of the	7038
Residential Facility Waiver transition as concerns individuals who	7039
reside in a residential facility with a license capacity of five	7040
or fewer beds. The boards and providers shall develop the plan in	7041
accordance with a protocol the Departments of Job and Family	7042
Services and Mental Retardation and Developmental Disabilities	7043
shall jointly establish.	7044

Section 5. (A) Notwithstanding Chapter 5111. of the Revised	7045
Code, until the date specified in the plan that the Department of	7046
Mental Retardation and Developmental Disabilities develops under	7047
Section 4 of this act and except as provided in division (B) of	7048
this section, the number of intermediate care facility for the	7049
mentally retarded beds eligible for Medicaid payment shall not be	7050
higher than the number of such beds eligible for such payment on	7051
the effective date of this section.	7052

(B) The Department of Job and Family Services may issue one	7053
or more waivers of division (A) of this section in the event that	7054
an emergency, as determined by the Department, exists. In	7055
determining whether to issue a waiver, the Department of Job and	7056
Family Services shall consider the recommendation of the	7057
Department of Mental Retardation and Developmental Disabilities.	7058

Section 6. Notwithstanding Am. Sub. H.B. 94 of the 124th	7059
General Assembly, the Department of Mental Retardation and	7060
Developmental Disabilities shall not take action against a county	7061
board of mental retardation and developmental disabilities	7062
authorized by that act on the basis that the county board	7063
submitted the last component of the plan required by section	7064
5126.054 of the Revised Code after November 1, 2001. The	7065
Department shall take action against the county board under	7066
division (B) of section 5126.056 of the Revised Code if the county	7067
board fails to submit that component to the Department by July 1,	7068
2002.	7069

Section 7. (A) The Joint Council on Mental Retardation and	7070
Developmental Disabilities created under section 101.37 of the	7071
Revised Code shall do both of the following in meetings open to	7072
the public:	7073

(1) Do all of the following regarding the tax equity	7074
program:	7075

(a) Review documents submitted by the Ohio Department of	7076
Mental Retardation and Developmental Disabilities, Ohio	7077
Superintendents of County Boards of Mental Retardation and	7078
Developmental Disabilities, Ohio Association of County Boards of	7079
Mental Retardation and Developmental Disabilities, and other	7080
entities to the Council regarding the issue of a property tax	7081
equalization program for adults only as provided by Am. Sub. H.B.	7082
94 of the 124th General Assembly;	7083

(b) Review the concept of Medicaid comparability of care,	7084
adult services expenditures within county boards of mental	7085
retardation and developmental disabilities, the concept of tax	7086
capacity and targeting property taxes to adult services, and the	7087
necessity to reduce the disparity in capability of county boards	7088
to provide adult services;	7089

(c) Establish a reasonable methodology to provide tax	7090
equalization for adult services for county boards that are below	7091
the average on property tax yield.	7092

(2) Do both of the following regarding the collective	7093
bargaining unit of service and support administrators:	7094

(a) Review the provision of section 5126.15 of the Revised	7095
Code that prohibits individuals employed or under contract as	7096
service and support administrators from being in the same	7097
collective bargaining unit as employees who perform duties that	7098
are not administrative;	7099

(b) Determine whether the following service and support	7100
administration functions are in conflict or incompatible with the	7101
functions of employees who perform duties that are not	7102
administrative:	7103

(i) Selection of providers of day services, including	7104
employees of county boards of mental retardation and developmental	7105
disabilities;	7106

(ii) Contracting with applicable providers;

7107

(iii) Reviewing and assuring the quality of services;

7108

(iv) Monitoring for major unusual incidents.

7109

(B) The Council shall prepare a report on its	7110
responsibilities under division (A) of this section. The report	7111
shall include the Council's findings and recommended actions. The	7112
Council shall submit the report to the Speaker of the House of	7113
Representatives, Senate President, and Governor not later than	7114
February 1, 2002.	7115

Section 8. Notwithstanding sections 5126.16 to 5126.18 of the	7116
Revised Code and Section 75.02 of Am. Sub. H.B. 94 of the 124th	7117
General Assembly, the Department of Mental Retardation and	7118
Developmental Disabilities shall do both of the following:	7119

(A) Use $6,500,000 in fiscal year 2002 and $13,000,000 in	7120
fiscal year 2003 of the appropriation item 322-501, County Boards	7121
Subsidies, in Section 75.02 of Am. Sub. H.B. 94 of the 124th	7122
General Assembly, to fund the tax equalization program in	7123
accordance with the law governing the program as revised by the	7124
General Assembly following the Joint Council on Mental Retardation	7125
and Developmental Disabilities' submission of the report required	7126
by this act regarding the tax equity program;	7127

(B) Make payments under the tax equity program for fiscal	7128
year 2002 after the General Assembly revises the law governing the	7129
program following the Council's submission of the report rather	7130
than on or before September 30, 2001.	7131

Section 9. (A) Section 307.6910 of the Revised Code is hereby	7132
repealed, effective July 1, 2007.	7133

(B) The amendments made to sections 5709.40, 5709.411,	7134
5709.43, 5709.73, 5709.74, 5709.75, 5709.77, 5709.78, 5709.79,	7135
5709.80, and 5709.81 of the Revised Code by this act do not affect	7136
ordinances adopted by the legislative authority of a municipal	7137
corporation or resolutions adopted by a board of township trustees	7138
or a board of county commissioners under those sections prior to	7139
the effective date of this act.	7140

Section 10.  Not later than January 30, 2007, the Director	7141
of Development shall prepare and deliver an evaluation of the	7142
programs and laws contained in section 122.171, section 307.6910,	7143
division (C) of section 5709.40, division (C) of section 5709.73,	7144
division (B) of section 5709.78, and division (C) of section	7145
5733.06, as it pertains to eligible corporations, of the Revised	7146
Code, as amended by this act; Section 41.15 of Am. Sub. H.B. 94 of	7147
the 124th General Assembly, as amended by this act, and Section	7148
63.09 of Am. Sub. H.B. 94 of the 124th General Assembly, as	7149
amended by this act, as they pertain to the Rural Development	7150
Initiative Fund and the Appalachian Technology and Workforce	7151
Development program; and section 122.602 of the Revised Code, as	7152
enacted by this act. The report shall be delivered not later than	7153
January 30, 2007, to the President of the Senate, the Speaker of	7154
the House of Representatives, the chairpersons of the standing	7155
committees to which economic development legislation is generally	7156
referred, and the Governor. The evaluation shall cover the time	7157
period from the effective date of this section to December 31,	7158
2006. The Director shall include a cumulative summary over the	7159
time period of data compiled from any annual or other reports	7160
required by the laws pertaining to the sections named above, and	7161
any additional information that the Director deems necessary. The	7162
Director shall analyze the effectiveness of the programs and	7163
provide a recommendation as to whether the programs should be	7164
continued, and whether any modifications are necessary.	7165

The Department of Taxation shall provide the necessary data	7166
concerning the operation of division (C) of section 5733.06 of the	7167
Revised Code as it pertains to eligible corporations. The	7168
Department shall forward this information to the Director of	7169
Development for inclusion in the report. This information shall	7170
include the number of eligible corporations that have claimed an	7171
exemption, the amount of tax revenue foregone because of the	7172
exemptions, and any other information deemed necessary by the	7173
Department of Taxation or the Director of Development.	7174

The Department of Taxation shall provide information to the	7175
Director of Development upon the Director's request concerning the	7176
administration of section 122.171 of the Revised Code as enacted	7177
by this act.	7178

Not later than December 31, 2006, a board of county	7179
commissioners that enters into an agreement under section 307.6910	7180
of the Revised Code during the time period covered by the report	7181
shall provide the Director of Development with all necessary	7182
information, as determined by the Director, concerning the	7183
agreement.	7184

Section 11. That Section 3 of Am. Sub. H.B. 440 of the 121st	7185
General Assembly, as most recently amended by Am. Sub. H.B. 94 of	7186
the 124th General Assembly, be amended to read as follows:	7187

"       Sec. 3.  Sections 122.23, 122.24, 122.25, 122.26, and 122.27	7188
of the Revised Code are hereby repealed, effective July 1, 2003	7189
2007."	7190

Section 12. That existing Section 3 of Am. Sub. H.B. 440 of	7191
the 121st General Assembly, as most recently amended by Am. Sub.	7192
H.B. 94 of the 124th General Assembly, is hereby repealed.	7193

Section 13. That Section 5.02 of Sub. H.B. 73 of the 124th	7194
General Assembly be amended to read as follows:	7195

"       Sec. 5.02.  ENFORCEMENT

7196

State Highway Safety Fund Group

7197

General Services Fund Group

7214

COLLECTIVE BARGAINING INCREASES

7220

Notwithstanding division (D) of section 127.14 and division	7221
(B) of section 131.35 of the Revised Code, except for the General	7222
Revenue Fund, the Controlling Board may, upon the request of	7223
either the Director of Budget and Management, or the Department of	7224
Public Safety with the approval of the Director of Budget and	7225
Management, increase appropriations for any fund, as necessary for	7226
the Department of Public Safety, to assist in paying the costs of	7227
increases in employee compensation that have occurred pursuant to	7228
collective bargaining agreements under Chapter 4117. of the	7229
Revised Code and, for exempt employees, under section 124.152 of	7230
the Revised Code.	7231

PATROL REIMBURSEMENT FUND CASH TRANSFER

7232

On the effective date of this amendment or as soon as	7233
possible thereafter, the Director of Budget and Management shall	7234
transfer $551,150.59 in cash from the Patrol Reimbursement Fund	7235
(Fund 838) to the Turnpike Policing Fund (Fund 837). This transfer	7236
will correct an inaccurate deposit made at the end of fiscal year	7237
2001."	7238

Section 14. That existing Section 5.02 of Sub. H.B. 73 of the	7239
124th General Assembly is hereby repealed.	7240

Section 15. That Section 41 of Am. Sub. H.B. 94 of the 124th	7241
General Assembly, as amended by Am. Sub. H.B. 3 and Am. Sub. H.B.	7242
299, both of the 124th General Assembly, be amended to read as	7243
follows:	7244

"       Sec. 41. DEV DEPARTMENT OF DEVELOPMENT

7245

General Revenue Fund

7246

General Services Fund Group

7286

Federal Special Revenue Fund Group

7292

State Special Revenue Fund Group

7309

Facilities Establishment Fund

7326

Coal Research/Development Fund

7337

Section 16. That existing Section 41 of Am. Sub. H.B. 94 of	7345
the 124th General Assembly, as amended by Am. Sub. H.B. 3 and Am.	7346
Sub. H.B. 299, both of the 124th General Assembly, is hereby	7347
repealed.	7348

Section 17. That Sections 41.15, 45, 63.25, 74.01, 74.02,	7349
94.11, 98, 104, and 140 of Am. Sub. H.B. 94 of the 124th General	7350
Assembly be amended to read as follows:	7351

"       Sec. 41.15.  FACILITIES ESTABLISHMENT FUND

7352

The foregoing appropriation item 195-615, Facilities	7353
Establishment (Fund 037), shall be used for the purposes of the	7354
Facilities Establishment Fund under Chapter 166. of the Revised	7355
Code.	7356

Notwithstanding Chapter 166. of the Revised Code, up to	7357
$1,600,000 may be transferred each fiscal year from the Facilities	7358
Establishment Fund (Fund 037) to the Economic Development	7359
Financing Operating Fund (Fund 451). The transfer is subject to	7360
Controlling Board approval pursuant to division (B) of section	7361
166.03 of the Revised Code.	7362

Notwithstanding Chapter 166. of the Revised Code, up to	7363
$3,800,000 may be transferred in each fiscal year of the biennium	7364
from the Facilities Establishment Fund (Fund 037) to the Minority	7365
Business Enterprise Loan Fund (Fund 4W1). The transfer is subject	7366
to Controlling Board approval pursuant to division (B) of section	7367
166.03 of the Revised Code.	7368

Notwithstanding Chapter 166. of the Revised Code, up to	7369
$5,000,000 cash may be transferred during the biennium from the	7370
Facilities Establishment Fund (Fund 037) to the Port Authority	7371
Bond Reserves Fund (Fund 5D1) for use by any port authority in	7372
establishing or supplementing bond reserve funds for any bond	7373
issuance permitted under Chapter 4582. of the Revised Code. The	7374
Director of Development shall develop program guidelines for the	7375
transfer and release of funds, including, but not limited to, a	7376
provision that a port authority shall receive not more than	7377
$2,000,000 total from the fund. The transfer and release of funds	7378
are subject to Controlling Board approval.	7379

Notwithstanding Chapter 166. of the Revised Code, up to	7380
$20,475,000 cash may be transferred during the biennium from the	7381
Facilities Establishment Fund (Fund 037) to the Urban	7382
Redevelopment Loans Fund (Fund 5D2) for the purpose of removing	7383
barriers to urban core redevelopment. The Director of Development	7384
shall develop program guidelines for the transfer and release of	7385
funds, including, but not limited to, the completion of all	7386
appropriate environmental assessments before state assistance is	7387
committed to a project.	7388

Notwithstanding Chapter 166. of the Revised Code, up to	7389
$5,000,000 per fiscal year in cash may be transferred from the	7390
Facilities Establishment Fund (Fund 037) to the Rural Industrial	7391
Park Loan Fund (Fund 4Z6). The transfer is subject to Controlling	7392
Board approval pursuant to section 166.03 of the Revised Code.	7393

FAMILY FARM LOAN PROGRAM

7394

Notwithstanding Chapter 166. of the Revised Code, up to	7395
$2,246,375 in each fiscal year shall be transferred from moneys in	7396
the Facilities Establishment Fund (Fund 037) to the Family Farm	7397
Loan Fund (Fund 5H1) in the Department of Development. These	7398
moneys shall be used for loan guarantees. The transfer is subject	7399
to Controlling Board approval.	7400

Financial assistance from the Family Farm Loan Fund (Fund	7401
5H1) shall be repaid to Fund 5H1. This fund is established in	7402
accordance with sections 166.031, 901.80, 901.81, 901.82, and	7403
901.83 of the Revised Code.	7404

When the Family Farm Loan Fund (Fund 5H1) ceases to exist,	7405
all outstanding balances, all loan repayments, and any other	7406
outstanding obligations shall revert to the Facilities	7407
Establishment Fund (Fund 037).	7408

RURAL DEVELOPMENT INITIATIVE FUND

7409

(A)(1) There is hereby created in the state treasury the	7410
Rural Development Initiative Fund (Fund 5S8). The fund shall	7411
receive moneys from the Facilities Establishment Fund. The	7412
Director of Development may make grants from the fund as specified	7413
in division (A)(2) of this section to eligible applicants in	7414
Appalachian counties and in rural counties in the state that are	7415
designated as distressed pursuant to section 122.25 of the Revised	7416
Code. Preference shall be given to eligible applicants located in	7417
Appalachian counties designated as distressed by the federal	7418
Appalachian Regional Commission. The fund shall cease to exist	7419
after June 30, 2007. All moneys remaining in the fund after that	7420
date shall revert to the Facilities Establishment Fund.	7421

(2) The Director of Development shall make grants from the	7422
Rural Development Initiative Fund only to eligible applicants who	7423
also qualify for and receive funding under the Rural Industrial	7424
Park Loan Program as specified in sections 122.23 to 122.27 of the	7425
Revised Code. Eligible applicants shall use the grants for the	7426
purposes specified in section 122.24 of the Revised Code. All	7427
projects supported by grants from the fund are subject to Chapter	7428
4115. of the Revised Code as specified in division (E) of section	7429
166.02 of the Revised Code. The Director shall develop program	7430
guidelines for the transfer and release of funds. The release of	7431
grant moneys to an eligible applicant is subject to Controlling	7432
Board approval.	7433

(B) Notwithstanding Chapter 166. of the Revised Code, the	7434
Director of Budget and Management may transfer up to $5,000,000	7435
per fiscal year in cash on an as needed basis at the request of	7436
the Director of Development from the Facilities Establishment Fund	7437
(Fund 037) to the Rural Development Initiative Fund (Fund 5S8).	7438
The transfer is subject to Controlling Board approval pursuant to	7439
section 166.03 of the Revised Code.	7440

CAPITAL ACCESS LOAN PROGRAM

7441

The foregoing appropriation item 195-628, Capital Access	7442
Loan Program, shall be used for operating, program, and	7443
administrative expenses of the program. Funds for the Capital	7444
Access Loan Program shall be used to assist participating	7445
financial institutions in making program loans to eligible	7446
businesses that face barriers in accessing working capital and	7447
obtaining fixed asset financing.	7448

Notwithstanding Chapter 166. of the Revised Code, the	7449
Director of Budget and Management may transfer up to $3,000,000	7450
per fiscal year in cash on an as needed basis at the request of	7451
the Director of Development from the Facilities Establishment Fund	7452
(Fund 037) to the Capital Access Loan Program Fund (Fund 5S9). The	7453
transfer is subject to Controlling Board approval pursuant to	7454
section 166.03 of the Revised Code.	7455

Sec. 45.  OEB OHIO EDUCATIONAL TELECOMMUNICATIONS NETWORK	7456
COMMISSION	7457

General Revenue Fund

7458

General Services Fund Group

7466

STATEHOUSE NEWS BUREAU

7472

The foregoing appropriation item 374-401, Statehouse News	7473
Bureau, shall be used solely to support the operations of the Ohio	7474
Statehouse News Bureau.	7475

OHIO GOVERNMENT TELECOMMUNICATIONS STUDIO

7476

The foregoing appropriation item 374-402, Ohio Government	7477
Telecommunications Studio, shall be used solely to support the	7478
operations of the Ohio Government Telecommunications Studio.	7479

TELECOMMUNICATIONS OPERATING SUBSIDY

7480

The foregoing appropriation item 374-404, Telecommunications	7481
Operating Subsidy, shall be distributed by the Ohio Educational	7482
Telecommunications Network Commission to Ohio's qualified public	7483
educational television stations, radio reading services, and	7484
educational radio stations to support their operations. The funds	7485
shall be distributed pursuant to an allocation developed by the	7486
Ohio Educational Telecommunications Network Commission.	7487

GOVERNMENT TELEVISION/TELECOMMUNICATIONS OPERATING

7488

Beginning on January 1, 2002, General Service Fund 4T2,	7489
Government Television/Telecommunications Operating, currently	7490
under the direction of the Capital Square Review and Advisory	7491
Board, shall be under the direction oftransferred to the Ohio	7492
Educational Telecommunications Network Commission. The Director of	7493
Budget and Management shall transfer, by January 15, 2002, all	7494
remaining balances in General Services Fund 4T2, Government	7495
Television/Telecommunications Operating, in the Capital Square	7496
Review and Advisory Board to General Services Fund 4T2, Government	7497
Television/Telecommunications Operating, in the Ohio Educational	7498
Telecommunications Network Commission. General Services Fund 4T2,	7499
Government Television/Telecommunications Operating, is hereby	7500
created in the Ohio Educational Telecommunications Network	7501
Commission.	7502

Sec. 63.25. REFUND OF SETS PENALTY

7503

The Department of Job and Family Services shall notify the	7504
Controlling Board immediately on receipt ofdeposit any refunds	7505
for penalties that were paid directly or indirectly by the state	7506
for the Support Enforcement Tracking System (SETS). Any and all	7507
refunds received for such penalties shall be deposited in their	7508
entirety to the General Revenue Fund 3V6, TANF Block Grant.	7509

Sec. 74.01. DIVISION OF MENTAL HEALTH - HOSPITALS

7510

General Revenue Fund

7511

General Services Fund Group

7517

Federal Special Revenue Fund Group

7522

State Special Revenue Fund Group

7530

COMMUNITY AND HOSPITAL MENTAL HEALTH SERVICES

7537

Of the foregoing appropriation item 334-408, Community and	7538
Hospital Mental Health Services, the appropriation increases made	7539
by the amendment in H.B. 405 of the 124th General Assembly shall	7540
be used by the state mental hospitals for operating purposes.	7541

COMMUNITY MENTAL HEALTH BOARD RISK FUND

7542

The foregoing appropriation item 334-636, Community Mental	7543
Health Board Risk Fund, shall be used to make payments pursuant to	7544
section 5119.62 of the Revised Code.	7545

Sec. 74.02. DIVISION OF MENTAL HEALTH - COMMUNITY SUPPORT	7546
SERVICES	7547

General Revenue Fund

7548

General Services Fund Group

7553

Federal Special Revenue Fund Group

7558

State Special Revenue Fund Group

7563

Sec. 94.11. BREAKTHROUGH INVESTMENTS

7584

OHIO PLAN STUDY COMMITTEE

7585

There is established the Ohio Plan Study Committee, which	7586
shall determine appropriate ways to fund the Ohio Plan for	7587
Technology and Development. The Study Committee shall consist of	7588
the Governor's Science Advisor, the Director of Budget and	7589
Management, the Chancellor of the Board of Regents, the Director	7590
of Development, three members of the House of Representatives	7591
appointed by the Speaker, of whom no more than two shall be of the	7592
same political party, and three members of the Senate appointed by	7593
the President, of whom no more than two shall be of the same	7594
political party. Administrative support for the Study Committee	7595
shall be provided by the Board of Regents. The Study Committee	7596
shall report its recommendations to the Governor and the General	7597
Assembly no later than December 31, 2001March 15, 2002. After it	7598
submits its report, the Study Committee shall cease to exist. The	7599
Ohio Plan for Technology and Development is intended to promote	7600
collaborative efforts among state government, higher education,	7601
and business and industry that will lead to the development of New	7602
Economy applications of science and technology and, ultimately,	7603
new business start-ups in the state and increased economic	7604
prosperity for the citizens of Ohio.	7605

APPALACHIAN NEW ECONOMY PARTNERSHIP

7606

The foregoing appropriation item 235-428, Appalachian New	7607
Economy Partnership, shall be distributed to Ohio University to	7608
begin a multi-campus and multi-agency coordinated effort to link	7609
Appalachia to the new economy. Ohio University shall use these	7610
funds to provide leadership in the development and implementation	7611
of initiatives in the areas of entrepreneurship, management,	7612
education, and technology.	7613

Sec. 98.  REVENUE DISTRIBUTION FUNDS

7614

Volunteer Firefighters' Dependents Fund

7615

Holding Account Redistribution

7626

ADDITIONAL APPROPRIATIONS

7645

Appropriation items in this section are to be used for the	7646
purpose of administering and distributing the designated revenue	7647
distributions fund according to the Revised Code. If it is	7648
determined that additional appropriations are necessary, such	7649
amounts are appropriated.	7650

Sec. 104.  SOS SECRETARY OF STATE

7651

General Revenue Fund

7652

General Services Fund Group

7658

State Special Revenue Fund Group

7664

Holding Account Redistribution Fund Group

7671

BOARD OF VOTING MACHINE EXAMINERS

7678

The foregoing appropriation item 050-610, Board of Voting	7679
Machine Examiners, shall be used to pay for the services and	7680
expenses of the members of the Board of Voting Machine Examiners,	7681
and for other expenses that are authorized to be paid from the	7682
Board of Voting Machine Examiners Fund, which is created in	7683
section 3506.05 of the Revised Code. Moneys not used shall be	7684
returned to the person or entity submitting the equipment for	7685
examination. If it is determined that additional appropriations	7686
are necessary, such amounts are appropriated.	7687

HOLDING ACCOUNT REDISTRIBUTION GROUP

7688

The foregoing appropriation items 050-605 and 050-606,	7689
Holding Account Redistribution Fund Group, shall be used to hold	7690
revenues until they are directed to the appropriate accounts or	7691
until they are refunded. If it is determined that additional	7692
appropriations are necessary, such amounts are appropriated.	7693

Sec. 140. TEMPORARY STABILIZATION OF LOCAL GOVERNMENT	7694
DISTRIBUTIONS	7695

(A) On or before the third day of each month of the period	7696
July 2001 through May 2002, the Tax Commissioner shall determine	7697
the amounts credited under sections 5727.45, 5733.12, 5739.21,	7698
5741.03, and 5747.03 of the Revised Code, respectively, to the	7699
Local Government Fund, to the Library and Local Government Support	7700
Fund, and to the Local Government Revenue Assistance Fund in the	7701
twelfth preceding month. On or before June 3, 2002, the Tax	7702
Commissioner shall determine the amounts credited under sections	7703
5727.45, 5733.12, 5739.21, 5741.03, and 5747.03 of the Revised	7704
Code, respectively, to the Local Government Fund, to the Library	7705
and Local Government Support Fund, and to the Local Government	7706
Revenue Assistance Fund in June 2000. For purposes of this	7707
section, any amount transferred during the period January 1, 2001,	7708
through June 30, 2001 to the Local Government Fund, to the Local	7709
Government Revenue Assistance Fund, or to the Library and Local	7710
Government Support Fund under section 131.44 of the Revised Code	7711
shall be considered to be an amount credited to that respective	7712
fund under section 5747.03 of the Revised Code.	7713

Notwithstanding sections 5727.45, 5733.12, 5739.21, 5741.03,	7714
and 5747.03 of the Revised Code to the contrary, for each month in	7715
the period July 1, 2001, through June 30, 2003, from the public	7716
utility excise, corporate franchise, sales, use, and personal	7717
income taxes collected:	7718

(1) An amount shall first be credited to the Local Government	7719
Fund that equals the amount credited to that fund from that tax	7720
according to the schedule in division (B) of this section.	7721

(2) An amount shall next be credited to the Local Government	7722
Revenue Assistance Fund that equals the amount credited to that	7723
fund from that tax according to the schedule in division (B) of	7724
this section.	7725

(3) An amount shall next be credited to the Library and Local	7726
Government Support Fund that equals the amount credited to that	7727
fund from that tax according to the schedule in division (B) of	7728
this section.	7729

(B) The amounts shall be credited from each tax to each	7730
respective fund as follows:	7731

(1) In July 2001 and July 2002, the amounts credited in July	7732
2000;	7733

(2) In August 2001 and August 2002, the amounts credited in	7734
August 2000;	7735

(3) In September 2001 and September 2002, the amounts	7736
credited in September 2000;	7737

(4) In October 2001 and October 2002, the amounts credited in	7738
October 2000;	7739

(5) In November 2001 and November 2002, the amounts credited	7740
in November 2000;	7741

(6) In December 2001 and December 2002, the amounts credited	7742
in December 2000;	7743

(7) In January 2002 and January 2003, the amounts credited	7744
in January 2001;	7745

(8) In February 2002 and February 2003, the amounts credited	7746
in February 2001;	7747

(9) In March 2002 and March 2003, the amounts credited in	7748
March 2001;	7749

(10) In April 2002 and April 2003, the amounts credited in	7750
April 2001;	7751

(11) In May 2002 and May 2003, the amounts credited in May	7752
2001;	7753

(12) In June 2002 and June 2003, the amounts credited in June	7754
2000.	7755

(C) Notwithstanding section 5727.84 of the Revised Code to	7756
the contrary, for the period July 1, 2001, through June 30, 2003,	7757
no amounts shall be credited to the Local Government Fund or to	7758
the Local Government Revenue Assistance Fund from the kilowatt	7759
hour tax, and such amounts that would have otherwise been required	7760
to be credited to such funds shall instead be credited to the	7761
General Revenue Fund. Notwithstanding section 131.44 of the	7762
Revised Code to the contrary, for the period July 1, 2001, through	7763
June 30, 2003, no amounts shall be transferred to the Local	7764
Government Fund, the Local Government Revenue Assistance Fund, or	7765
the Library and Local Government Support Fund from the Income Tax	7766
Reduction Fund, and such amounts that would have otherwise been	7767
transferred to such funds from the Income Tax Reduction Fund shall	7768
instead be transferred to the General Revenue Fund.	7769

(D) The amounts otherwise required by this section to be	7770
credited to the Local Government Fund, the Local Government	7771
Revenue Assistance Fund, and the Library and Local Government	7772
Support Fund for fiscal year 2002 and 2003 shall be reduced by six	7773
per cent for each such year, consistent with the reduction made by	7774
this act to the appropriations contained in Section 98 of Am. Sub.	7775
H.B. 94 of the 124th General Assembly. Distributions to each	7776
county undivided local government fund, municipality, county	7777
undivided local government revenue assistance fund, and county	7778
library and local government support fund shall be reduced	7779
accordingly.	7780

Notwithstanding any other provision of law to the contrary,	7781
the Tax Commissioner shall compute separate adjustments to the	7782
amounts credited from the public utility excise, corporate	7783
franchise, sales, use, and personal income taxes to the Local	7784
Government Fund, the Local Government Revenue Assistance Fund, and	7785
the Library and Local Government Support Fund during July 2001.	7786
The adjustments shall equal the amount credited to each respective	7787
fund from each respective tax during June 2000 minus the amount	7788
credited to that fund from that tax during June 2001. If an	7789
adjustment is a positive amount, during July 2001, such amount	7790
shall be credited to the Local Government Fund, the Local	7791
Government Revenue Assistance Fund, or the Library and Local	7792
Government Support Fund, as appropriate, and shall be deducted	7793
from the General Revenue Fund. If an adjustment is a negative	7794
amount, during July 2001, such amount shall be deducted from the	7795
Local Government Fund, the Local Government Revenue Assistance	7796
Fund, or the Library and Local Government Support Fund, as	7797
appropriate, and shall be credited to the General Revenue Fund.	7798
Any amount remaining in the Local Government Fund, the Local	7799
Government Revenue Assistance Fund, or the Library and Local	7800
Government Support Fund after the distributions from such funds	7801
are made to local governments in August 2001, shall be certified	7802
by the Tax Commissioner to the Director of Budget and Management	7803
by August 15, 2001, and the Director of Budget and Management	7804
shall transfer such amount from each respective fund to the	7805
General Revenue Fund by August 31, 2001.	7806

For purposes of this section, "pro rata share" means the	7807
percentage calculated for each county and used in each month of	7808
the period July 2000 through June 2001 to distribute the amounts	7809
credited to the Library and Local Government Support Fund in	7810
accordance with section 5747.47 of the Revised Code.	7811

Notwithstanding any other provision of law to the contrary,	7812
in July 2001, each county undivided library and local government	7813
support fund shall receive from the Library and Local Government	7814
Support Fund an amount equal to the amount it would have received	7815
pursuant to section 5747.47 of the Revised Code for that month,	7816
minus its pro rata share of any amount that has been or shall be	7817
transferred from the Library and Local Government Support Fund to	7818
the OPLIN Technology Fund in that month. In August 2001, each	7819
county undivided library and local government support fund shall	7820
receive from the Library and Local Government Support Fund an	7821
amount equal to the amount it received from that fund in July 2000	7822
and August 2000 minus the amount it received from that fund in	7823
July 2001 and minus its pro rata share of any amount transferred	7824
from that fund to the OPLIN Technology Fund in July 2001 or August	7825
2001. In August 2001, each county undivided local government fund	7826
shall receive from the Local Government Fund, each municipality	7827
that receives a distribution directly from the Local Government	7828
Fund shall receive from that fund, and each county undivided local	7829
government revenue assistance fund shall receive from the Local	7830
Government Revenue Assistance Fund an amount equal to the amount	7831
it received from that respective fund in July 2000 and August 2000	7832
minus the amount it received from that respective fund in July	7833
2001. In each month of the periods September 1, 2001, through June	7834
30, 2002, and September 1, 2002, through June 30, 2003, each	7835
county undivided local government fund shall receive from the	7836
Local Government Fund, each municipality that receives a	7837
distribution directly from the Local Government Fund shall receive	7838
from that fund, each county undivided local government revenue	7839
assistance fund shall receive from the Local Government Revenue	7840
Assistance Fund, and each county undivided library and local	7841
government support fund shall receive from the Library and Local	7842
Government Support Fund, the same amount it received from that	7843
respective fund in the corresponding month of the period September	7844
1, 2000, through June 2001. In each month of the period July 1,	7845
2002, through August 31, 2002, and in the month of July 2003, each	7846
county undivided local government fund shall receive from the	7847
Local Government Fund, each municipality that receives a	7848
distribution directly from the Local Government Fund shall receive	7849
from that fund, each county undivided local government revenue	7850
assistance fund shall receive from the Local Government Revenue	7851
Assistance Fund, and each county undivided library and local	7852
government support fund shall receive from the Library and Local	7853
Government Support Fund, the same amount it received from that	7854
respective fund in the corresponding month of the period July 1,	7855
2000, through August 31, 2000. If during any month of the period	7856
September 1, 2001, through July 31, 2003, a transfer is made from	7857
the Library and Local Government Support Fund to the OPLIN	7858
Technology Fund, the amount distributed to each county undivided	7859
library and local government support fund shall be reduced by its	7860
pro rata share of the amount transferred.	7861

During the period July 1, 2001, through July 31, 2003, the	7862
Director of Budget and Management shall issue those directives to	7863
state agencies that are necessary to ensure that the appropriate	7864
amounts are distributed to the Local Government Fund, to the Local	7865
Government Revenue Assistance Fund, and to the Library and Local	7866
Government Support Fund to accomplish the purposes of this	7867
section."	7868

Section 18. That existing Sections 41.15, 45, 63.25, 74.01,	7869
74.02, 94.11, 98, 104, and 140 of Am. Sub. H.B. 94 of the 124th	7870
General Assembly are hereby repealed.	7871

Section 19. That Sections 41.10 and 63.09 of Am. Sub. H.B. 94	7872
of the 124th General Assembly, as amended by Am. Sub. H.B. 299 of	7873
the 124th General Assembly, be amended to read as follows:	7874

"       Sec. 41.10. EMERGENCY SHELTER HOUSING GRANTS

7875

(A) As used in this section, "emergency shelter housing"	7876
means a structure suitable for the temporary housing of the	7877
homeless and the provision of, or referral to, supportive	7878
services. Shelters that restrict admission to victims of domestic	7879
violence, runaways, or alcohol or substance abusers shall not be	7880
considered emergency shelter housing.	7881

(B) The foregoing appropriation item 195-440, Emergency	7882
Shelter Housing Grants, shall be used by the Office of Housing and	7883
Community Partnerships in the Department of Development to make	7884
grants to private, nonprofit organizations to provide emergency	7885
shelter housing for the homeless. The department shall distribute	7886
the grants pursuant to rules adopted by the Director of	7887
Development. The director may amend or rescind the rules and may	7888
adopt other rules necessary to implement this section. In awarding	7889
grants, the department shall give preference to organizations	7890
applying to fund existing emergency shelter housing.	7891

The department shall notify each organization that applied	7892
for a grant under this section of the amount of its grant award,	7893
if any. To receive a grant, the organization shall provide	7894
matching funds equal to 50 per cent of the total grant it was	7895
awarded. The organization shall expend its grant for shelter	7896
operations and supportive services, which include employment	7897
assistance, case management, information and referral services,	7898
transportation, and clothing. In providing employment assistance,	7899
the organization shall, at a minimum, refer persons to the	7900
Department of Job and Family Services.	7901

LOW AND MODERATE INCOME HOUSING

7902

The Director of Budget and Management, after consulting with	7903
the Director of Development, shall transfer up to $19,000,000 from	7904
appropriation item 195-441, Low and Moderate Income Housing, to	7905
appropriation item 195-638, Low and Moderate Income Housing Trust	7906
Fund. This transfer shall be made via an intrastate transfer	7907
voucher.	7908

UTILITY BILL CREDIT

7909

The foregoing appropriation item 195-505, Utility Bill	7910
Credits, shall be used to provide utility and fuel assistance to	7911
eligible low-income Ohio households with elderly and disabled	7912
members.	7913

TANF HOUSING PROGRAM

7914

There is hereby established the TANF Housing Program to be	7915
administered by the Department of Development in accordance with	7916
an interagency agreement entered into with the Department of Job	7917
and Family Services under section 5101.801 of the Revised Code.	7918
The program shall provide benefits and services to TANF eligible	7919
individuals under a Title IV-A program pursuant to the	7920
requirements of section 5101.801 of the Revised Code.	7921

The foregoing appropriation item 195-619, TANF Housing	7922
Program, shall be used to provide supportive services for	7923
low-income families related to housing or homelessness, including	7924
housing counseling; to provide grants to nonprofit organizations	7925
to assist Title IV-A eligible families with incomes at or below	7926
200 per cent of the federal poverty guidelines with down-payment	7927
assistance for homeownership or down-payment assistance toward the	7928
purchase of mobile homes, to provide emergency home repair funding	7929
for Title IV-A eligible families with incomes at or below 200 per	7930
cent of the federal poverty guidelines; to provide operating	7931
support for family emergency shelter programs; and to provide	7932
emergency rent and mortgage assistance for families with incomes	7933
at or below 200 per cent of the federal poverty guidelines. The	7934
funds shall not be used to match federal funds.	7935

To the extent practicable and in order to prevent duplication	7936
of the provision of assistance, the Department of Development	7937
shall require applicants for these funds to provide evidence of	7938
collaboration with other county governmental entities, including,	7939
when appropriate, county job and family services departments.	7940

The Department of Job and Family Services shall transfer into	7941
the TANF Housing Fund (3X3) of the Department of Development,	7942
which is hereby created, funds necessary to reimburse allowable	7943
TANF Housing Program expenditures as reported by the Department of	7944
Development. The transfer of funds shall be made by intrastate	7945
transfer vouchers processed against appropriation item 600-689,	7946
TANF Block Grant, of the Department of Job and Family Services and	7947
shall not exceed $5,200,000 in fiscal year 2002 and $6,500,000 in	7948
fiscal year 2003$11,700,000 for the biennium. Encumbrances shall	7949
be allowed and maintained for agreements meeting provisions of	7950
this section and shall be maintained for a period not to exceed	7951
federal provisions for use of TANF Block Grant funds that have	7952
been committed for any federal TANF Block Grant year for services	7953
that are not considered to be "assistance" as defined in 45 C.F.R.	7954
260.31(a).	7955

No more than five per cent of the transferred funds may be	7956
used by the Department of Development for the administrative	7957
expenses of this program.	7958

The benefits and services provided under the TANF Housing	7959
Program shall not be "assistance" as defined in 45 C.F.R.	7960
260.31(a), and shall be benefits and services that 45 C.F.R.	7961
260.31(b) excludes from the definition of assistance.	7962

As used in this section, "federal poverty guideline" means	7963
the poverty guideline as defined by the United States Office of	7964
Management and Budget and revised by the United States Secretary	7965
of Health and Human Services in accordance with section 673 of the	7966
"Community Services Block Grant Act," 95 Stat. 511 (1981), 42	7967
U.S.C.A. 9902, as amended.	7968

Sec. 63.09. TANF

7969

TANF COUNTY INCENTIVES

7970

Of the foregoing appropriation item 600-689, TANF Block	7971
Grant, the Department of Job and Family Services may provide	7972
financial incentives to those county departments of job and family	7973
services that have exceeded performance standards adopted by the	7974
state department, and where the board of county commissioners has	7975
entered into a written agreement with the state department under	7976
section 5101.21 of the Revised Code governing the administration	7977
of the county department. Any financial incentive funds provided	7978
pursuant to this division shall be used by the county department	7979
for additional or enhanced services for families eligible for	7980
assistance under Chapter 5107. or benefits and services under	7981
Chapter 5108. of the Revised Code or, on request by the county and	7982
approval by the Department of Job and Family Services, be	7983
transferred to the Child Care and Development Fund or the Social	7984
Services Block Grant. The county departments of job and family	7985
services may retain and expend such funds without regard to the	7986
state or county fiscal year in which the financial incentives were	7987
earned or paid. Each county department of job and family services	7988
shall file an annual report with the Department of Job and Family	7989
Services providing detailed information on the expenditure of	7990
these financial incentives and an evaluation of the effectiveness	7991
of the county department's use of these funds in achieving	7992
self-sufficiency for families eligible for assistance under	7993
Chapter 5107. or benefits and services under Chapter 5108. of the	7994
Revised Code.	7995

TANF YOUTH DIVERSION PROGRAMS

7996

Of the foregoing appropriation item 600-689, TANF Block	7997
Grant, $19,500,000 in each fiscal year shall be allocated by the	7998
Department of Job and Family Services to the counties according to	7999
the allocation formula established in division (D) of section	8000
5101.14 of the Revised Code. Of the funds allocated to each	8001
county, up to half may be used for contract services for unruly	8002
and misdemeanant diversionary programs.	8003

The remaining funds not allocated for use in juvenile	8004
diversion activities may be used by the county for other contract	8005
child welfare services. In counties with separate departments of	8006
job and family services and public children services agencies, the	8007
county department of job and family services shall serve as a pass	8008
through to the public children services agencies for these funds.	8009
Separate public children services agencies receiving such funds	8010
shall comply with all TANF requirements, including reporting	8011
requirements and timelines, as specified in state and federal	8012
laws, federal regulations, state rules, and the Title IV-A state	8013
plan, and are responsible for payment of any adverse audit	8014
finding, final disallowance of federal financial participation, or	8015
other sanction or penalty issued by the federal government or	8016
other entity concerning these funds.	8017

Of the foregoing $19,500,000 set aside, any funds remaining	8018
unspent on June 30, 2002, shall be carried forward and added to	8019
the earmark for fiscal year 2003, and allocated to the counties	8020
according to the allocation formula established in division (D) of	8021
section 5101.14 of the Revised Code.	8022

KINSHIP NAVIGATORS

8023

Of the foregoing appropriation item 600-689, TANF Block	8024
Grant, up to $3 million in each fiscal year shall be allocated by	8025
the Department of Job and Family Services to county departments of	8026
job and family services for the purpose of making allocations to	8027
local public children services agencies to provide services in the	8028
Kinship Navigation program. The allocation to county departments	8029
of job and family services shall be based on the number of Ohio	8030
works first cases in the county, and the number of children	8031
seventeen years of age or younger in the county. The Department of	8032
Job and Family Services shall develop an appropriate method of	8033
reallocating these funds in each fiscal year among the county	8034
departments of job and family services, if they would otherwise be	8035
unspent.	8036

TANF FAITH-BASED AND NON-PROFIT CAPACITY-BUILDING PROGRAMS

8037

From the foregoing appropriation item 600-689, TANF Block	8038
Grant, up to $1,000,000 in each fiscal year shall be used to	8039
support capacity-building efforts among faith-based and non-profit	8040
organizations, for the purpose of providing allowable services to	8041
TANF-eligible individuals. Organizations receiving these funds	8042
shall comply with all TANF requirements, and shall agree with the	8043
Department of Job and Family Services on reporting requirements to	8044
be incorporated into the grant agreement.	8045

TANF EDUCATION

8046

There is hereby established the Title IV-A Education Program	8047
to be administered by the Department of Education in accordance	8048
with an interagency agreement entered into with the Department of	8049
Job and Family Services under division (A)(2) of section 5101.801	8050
of the Revised Code. The program shall provide benefits and	8051
services to TANF eligible individuals with incomes at or below 200	8052
per cent of the federal poverty guidelines under a Title IV-A	8053
program pursuant to the requirements of section 5101.801 of the	8054
Revised Code. Upon approval by the Department of Job and Family	8055
Services, the Department of Education shall adopt policies and	8056
procedures establishing program requirements for eligibility,	8057
services, fiscal accountability, and other criteria necessary to	8058
comply with the provisions of Title IV-A of the "Social Security	8059
Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as amended.	8060

The Department of Job and Family Services shall reimburse the	8061
General Revenue Fund through intrastate transfer vouchers for	8062
allowable Title IV-A Head Start expenditures reported by the	8063
Department of Education in fiscal year 2002 by amounts up to	8064
$76,156,175 from Fund 3V6, TANF Block Grant, and in fiscal year	8065
2003, up to $98,843,825 from Fund 3V6, TANF Block Grant. The	8066
Department of Job and Family Services shall reimburse the General	8067
Revenue Fund through intrastate transfer vouchers for allowable	8068
Title IV-A student intervention services expenditures in fiscal	8069
year 2003 up to $35,000,000 from Fund 3V6, TANF Block Grant.	8070

COUNTY DEPARTMENTS OF JOB AND FAMILY SERVICES TITLE IV-A	8071
ADULT LITERACY AND CHILD READING PROGRAMS	8072

There is hereby established the Title IV-A Adult Literacy and	8073
Child Reading Program to be administered by the county departments	8074
of job and family services in accordance with division (B)(1) of	8075
section 5101.801 of the Revised Code. The program shall provide	8076
benefits and services to TANF-eligible individuals with incomes at	8077
or below 200 per cent of the federal poverty guidelines under a	8078
Title IV-A program pursuant to the requirements of section	8079
5101.801 of the Revised Code. The county departments of job and	8080
family services shall ensure program requirements for eligibility,	8081
services, fiscal accountability, and other criteria necessary to	8082
comply with the provisions of Title IV-A of the "Social Security	8083
Act," 110 Stat. 2113 (1996), 42 U.S.C. 601, as amended, and ensure	8084
that benefits and services are allowable uses of federal Title	8085
IV-A funds as specified in 42 U.S.C.A. 604(a), except that they	8086
may not be "assistance" as defined in 45 C.F.R. 260.31(a). The	8087
benefits and services shall be benefits and services that 45	8088
C.F.R. 260.31(b) excludes from the definition of "assistance."	8089
From the foregoing appropriation item 600-689, TANF Block Grant,	8090
up to $5,000,000 in each fiscal year shall be used to support	8091
local adult literacy and child reading programs.	8092

TALBERT HOUSE

8093

In each fiscal year, the Director of Job and Family Services	8094
shall provide $100,500 from appropriation item 600-689, TANF Block	8095
Grant, to the Hamilton County Department of Job and Family	8096
Services to contract with the Talbert House for the purpose of	8097
providing allowable services to TANF-eligible individuals with	8098
incomes at or below 200 per cent of the federal poverty	8099
guidelines. The contract between the Hamilton County Department	8100
of Job and Family Services and the Talbert House shall establish	8101
conditions for the reimbursement of allowable Title IV-A	8102
expenditures for services that are allowable uses of federal Title	8103
IV-A funds as specified in 42 U.S.C.A. 604(a), except that they	8104
may not be "assistance" as defined in 45 C.F.R. 260.31(a). The	8105
benefits and services shall be benefits and services that 45	8106
C.F.R. 260.31(b) excludes from the definition of "assistance." The	8107
contract shall also require Talbert House to comply with	8108
requirements of Title IV-A of the "Social Security Act," 110 Stat.	8109
2113 (1996), 42 U.S.C. 601, as amended, including eligibility of	8110
individuals, reporting requirements, allowable benefits and	8111
services, use of funds, and audit requirements, as specified in	8112
state and federal laws, federal regulations, state rules, federal	8113
Office of Management and Budget circulars, and the Title IV-A	8114
state plan.	8115

MONTGOMERY COUNTY OUT-OF-SCHOOL YOUTH PROJECT

8116

In each fiscal year, the Director of Job and Family Services	8117
shall provide $1,000,000 from appropriation item 600-689, TANF	8118
Block Grant, to the Montgomery County Department of Job and Family	8119
Services to be used to support the Out-of-School Youth Project in	8120
Montgomery County for the purpose of providing allowable services	8121
to TANF-eligible individuals. The Montgomery County Department of	8122
Job and Family Services and the Sinclair Community College shall	8123
comply with all TANF requirements, including reporting	8124
requirements and timelines, as specified in state and federal	8125
laws, federal regulations, state rules, and the Title IV-A state	8126
plan.	8127

APPALACHIAN TECHNOLOGY AND WORKFORCE DEVELOPMENT AND JOB	8128
TRAINING	8129

From the foregoing appropriation item 600-689, TANF Block	8130
Grant, the Director of Job and Family Services shall provide up to	8131
$15,000,000 to be awarded to the county departments of job and	8132
family services in the twenty-nine Appalachian counties,	8133
contingent upon passage of H.B. 6 of the 124th General Assembly.	8134
Each county shall be eligible to apply for an initial grant, or	8135
grants, the cumulative amount of which shall not exceed $500,000	8136
per county. These funds shall be used by the county departments of	8137
job and family services in coordination with the Governor's Office	8138
of Appalachia, the Governor's Regional Economic Office, and local	8139
development districts. These funds shall be used for the	8140
following eligible activities: workforce development and	8141
supportive services; economic development;microenterprise	8142
development and other entrepreneurship activities; technology	8143
expansion, technical assistance, and training; youth job training;	8144
organizational development for workforce development partners; and	8145
improving existing technology centers, workforce development, job	8146
creation and retention, purchasing technology, and technology and	8147
technology infrastructure upgrades. The funds may be used to	8148
leverage other state and local funds for eligible activities.	8149

As a condition on the use of these funds, each county	8150
department of job and family services shall have a committee that	8151
shall submit a plan for the intended use of these funds to the	8152
Department of Job and Family ServicesGovernor's Office of	8153
Appalachia. The plan shall also be reviewed by the Governor's	8154
Office of Appalachia, the Governor's Regional Economic Office, and	8155
local development districts. Alsowhich may approve or disapprove	8156
the plan in whole or in part. The Governor's Office of Appalachia	8157
shall forward each final, approved plan to the Department of Job	8158
and Family Services. The plan must be developed and submitted by a	8159
county committee that includes, at a minimum, a county	8160
commissioner; a mayor of a municipality in the county; an economic	8161
development official from the county, local political subdivision,	8162
or development district; a representative of a chamber of commerce	8163
or a port authority in the county; a local or regional community	8164
action representative; and a representative from the county	8165
department of job and family services.	8166

The Governor's Office of Appalachia shall develop	8167
guidelines for the submission and approval of plans, guidelines	8168
for quarterly monitoring and reporting on program activities after	8169
funds are awarded, and any other guidelines necessary for the	8170
administration of the program. The Department of Job and Family	8171
Services shall provide technical assistance and advice to the	8172
Governor's Office of Appalachia to facilitate the administration	8173
of the funds. The Governor's Office of Appalachia shall develop	8174
guidelines for the reallocation of unawarded funds.	8175

Also as a condition on the use of these funds, each county	8176
and contract agency shall acknowledge that these funds are a	8177
one-time allocation, not intended to fund services beyond	8178
SeptemberJune 30, 20022003.	8179

In fiscal year 2002, the TANF allocation to each of the	8180
Appalachian counties shall not be less than the TANF allocation	8181
amount for fiscal year 2001, as allocated according to the	8182
methodology set forth in paragraph (I) of rule 5101-6-03 of the	8183
Administrative Code.	8184

The use of these funds shall comply with all TANF	8185
requirements, including reporting requirements and timelines, as	8186
specified in state and federal laws, federal regulations, state	8187
rules, and the Title IV-A state plan.	8188

CENTER FOR FAMILY AND CHILDREN

8189

Of the foregoing appropriation item 600-689, TANF Block	8190
Grant, $150,000 in fiscal year 2002 shall be provided to the	8191
Center for Family and Children.	8192

TANF FAMILY PLANNING

8193

The Director of Budget and Management shall transfer by	8194
intrastate voucher, no later than the fifteenth day of July of	8195
each fiscal year, cash from the General Revenue Fund,	8196
appropriation item 600-410, TANF State, to General Services Fund	8197
5C1 in the Department of Health, in an amount of $250,000 in each	8198
fiscal year for the purpose of family planning services for	8199
children or their families whose income is at or below 200 per	8200
cent of the official poverty guideline.	8201

TANF FEDERAL BLOCK GRANT FUNDS AND TRANSFERS

8202

From the foregoing appropriation items 600-410, TANF State;	8203
600-658, Child Support Collections; or 600-689, TANF Block Grant,	8204
or a combination of these appropriation items, no less than	8205
$369,040,735 in each fiscal year shall be allocated to county	8206
departments of job and family services as follows:	8207

Upon the request of the Department of Job and Family	8217
Services, the Director of Budget and Management may seek	8218
Controlling Board approval to increase appropriations in	8219
appropriation item 600-689, TANF Block Grant, provided sufficient	8220
Federal TANF Block Grant funds exist to do so, without any	8221
corresponding decrease in other appropriation items. The	8222
Department of Job and Family Services shall provide the Office of	8223
Budget and Management and the Controlling Board with documentation	8224
to support the need for the increased appropriation.	8225

All transfers of moneys from or charges against TANF Federal	8226
Block Grant awards for use in the Social Services Block Grant or	8227
the Child Care and Development Block Grant from either unobligated	8228
prior year appropriation authority in appropriation item 400-411,	8229
TANF Federal Block Grant, or 600-411, TANF Federal Block Grant, or	8230
from fiscal year 2002 and fiscal year 2003 appropriation authority	8231
in item 600-689, TANF Block Grant, shall be done ten days after	8232
the Department of Job and Family Services gives written notice to	8233
the Office of Budget and Management. The Department of Job and	8234
Family Services shall first provide the Office of Budget and	8235
Management with documentation to support the need for such	8236
transfers or charges for use in the Social Services Block Grant or	8237
in the Child Care and Development Block Grant.	8238

The Department of Job and Family Services shall in each	8239
fiscal year of the biennium transfer the maximum amount of funds	8240
from the federal TANF Block Grant to the federal Social Services	8241
Block Grant as permitted under federal law. Not later than July	8242
15, 2001, the Department of Job and Family Services shall draw	8243
$60,000,000 in receipts from TANF funds that were transferred into	8244
the Social Services Block Grant into State Special Revenue Fund	8245
5Q8, in the Office of Budget and Management. Not later than June	8246
1, 2002, the Director of Budget and Management shall determine the	8247
amount of funds in State Special Revenue Fund 5Q8 that is needed	8248
for the purpose of balancing the General Revenue Fund, and may	8249
transfer that amount to the General Revenue Fund. Not later than	8250
June 1, 2003, the Director of Budget and Management shall	8251
determine the amount of funds in State Special Revenue Fund 5Q8	8252
that is needed for the purpose of balancing the General Revenue	8253
Fund, and may transfer that amount to the General Revenue Fund.	8254
Any moneys remaining in State Special Revenue Fund 5Q8 on June 15,	8255
2003, shall be transferred not later than June 20, 2003, to Fund	8256
3V6, TANF Block Grant, in the Department of Job and Family	8257
Services.	8258

Before the thirtieth day of September of each fiscal year,	8259
the Department of Job and Family Services shall file claims with	8260
the United States Department of Health and Human Services for	8261
reimbursement for all allowable expenditures for services provided	8262
by the Department of Job and Family Services, or other agencies	8263
that may qualify for Social Services Block Grant funding pursuant	8264
to Title XX of the Social Security Act. The Department of Job and	8265
Family Services shall deposit, into Fund 5E6, State Option Food	8266
Stamps, $6 million, into Fund 5P4, TANF Child Welfare, $7.5	8267
million, into Fund 3W5, Health Care Services, $500,000, into Fund	8268
3W8, Hippy Program, $62,500, and into Fund 3W9, Adoption	8269
Connection, $50,000 and deposit in fiscal year 2002, into Fund	8270
3W2, Title XX Vocational Rehabilitation, $600,000, into Fund 162	8271
in the Department of Natural Resources, $7,885,349, and into Fund	8272
3W3, Adult Special Needs, $4,720,227 in receipts from TANF Block	8273
Grant funds credited to the Social Services Block Grant. In fiscal	8274
year 2003, if, pursuant to federal law, the state is allowed to	8275
transfer up to 10 per cent of the TANF block grant and no less	8276
than $72,796,826 for the purposes of reimbursing allowable	8277
expenditures for services provided by the Department of Job and	8278
Family Services, or other agencies that may qualify for Social	8279
Services Block Grant funding pursuant to Title XX of the Social	8280
Security Act, then the Department of Job and Family Services shall	8281
deposit $6 million into Fund 5E6, State Option Food Stamps, $7.5	8282
million into Fund 5P4 TANF Child Welfare, $897,052 into Fund 3W2,	8283
Title XX Vocational Rehabilitation, and $500,000 into Fund 3W5,	8284
Health Care Services. To the extent that the amount allowed to be	8285
transferred is less than the $72,796,826, then the amounts	8286
deposited into the above funds shall be reduced proportionally. On	8287
verification of the receipt of the above revenue, the funds	8288
provided by these transfers shall be used as follows:	8289

WELLNESS

8325

The foregoing appropriation item 600-690, Wellness, shall be	8326
used by county departments of job and family services for teen	8327
pregnancy prevention programming. Local contracts shall be	8328
developed between county departments of job and family services	8329
and local family and children first councils for the	8330
administration of TANF funding for this program."	8331

Section 20. That existing Sections 41.10 and 63.09 of Am.	8332
Sub. H.B. 94 of the 124th General Assembly, as amended by Am. Sub.	8333
H.B. 299 of the 124th General Assembly, are hereby repealed.	8334

Section 21. That Section 10 of Am. Sub. S.B. 192 of the 123rd	8335
General Assembly be amended to read as follows:	8336

"       Sec. 10. SectionsSection 8 and 9 of this actAm. Sub. S.B.	8337
192 of the 123rd General Assembly shall remain in full force and	8338
effect commencing on July 1, 2000, and terminating on June 30,	8339
2002, for the purpose of drawing money from the state treasury in	8340
payment of liabilities lawfully incurred thereunder, and on June	8341
30, 2002, and not before, the moneys appropriated thereby shall	8342
lapse into the funds from which they are severally appropriated.	8343

The appropriations made in SectionsSection 8 and 9 of this	8344
actAm. Sub. S.B. 192 of the 123rd General Assembly are subject to	8345
all provisions of the capital appropriations bill governing the	8346
2000-2002 biennium that are generally applicable to such	8347
appropriations. Expenditures from appropriations contained in	8348
SectionsSection 8 and 9 shall be accounted for as though made in	8349
the capital appropriations bill governing the 2000-2002 biennium."	8350

Section  22.  That existing Section 10 of Am. Sub. S.B. 192	8351
of the 123rd General Assembly is hereby repealed.	8352

Section 23.  That Section 9 of Am. Sub. S.B. 192 of the 123rd	8353
General Assembly, as amended by Am. Sub. H.B. 94 of the 124th	8354
General Assembly, be amended to read as follows:	8355

"       Sec. 9. All items set forth in this section are hereby	8356
appropriated out of any moneys in the state treasury to the credit	8357
of the Law Enforcement Improvements Trust Fund (Fund J87) that are	8358
not otherwise appropriated.	8359

Appropriations

AGO ATTORNEY GENERAL

8360

Tobacco Master Settlement Agreement Fund Group

8361

LAW ENFORCEMENT IMPROVEMENTS TRUST FUND

8366

The foregoing appropriation item 055-635, Law Enforcement	8367
Technology, Training, and Facility Enhancements shall be used in	8368
accordance with section 183.10 of the Revised Code.	8369
Notwithstanding anything to the contrary contained in sections	8370
9.33 to 9.332 and Chapters 123. and 153. of the Revised Code, the	8371
Office of the Attorney General may negotiate, enter into, and	8372
administer a contract that combines both the design and	8373
construction elements into one contract for the Ohio Peace Officer	8374
Training Academy Outdoor Training Facility and Improvements	8375
project, which is funded from appropriation item 055-635, Law	8376
Enforcement Technology, Training, and Facility Enhancements."	8377

Section 24. That existing Section 9 of Am. Sub. S.B. 192 of	8378
the 123rd General Assembly, as amended by Am. Sub. H.B. 94 of the	8379
124th General Assembly, is hereby repealed.	8380

Section 25. On the first Friday and Saturday following the	8381
effective date of this section, no tax on retail sales imposed or	8382
authorized by Chapter 5739. of the Revised Code or on use,	8383
storage, or consumption imposed or authorized by Chapter 5741. of	8384
the Revised Code shall apply to sales of any item of clothing or	8385
footwear designed to be worn on or about the human body the price	8386
of which, excluding the tax, does not exceed two hundred dollars.	8387

The Tax Commissioner, in accordance with section 5703.14 of	8388
the Revised Code, shall adopt rules necessary to implement the	8389
exemption authorized by this section, and shall make available to	8390
vendors informational bulletins explaining the exemption.	8391

This section, and the items of law of which it is composed,	8392
are subject to the referendum. Therefore, under Ohio	8393
Constitution, Article II, Section 1c and section 1.471 of the	8394
Revised Code, this section, and the items of law of which it is	8395
composed, take effect on the ninety-first day after this act is	8396
filed with the Secretary of State. If, however, a referendum	8397
petition is filed against this section, or against any item of law	8398
of which this section is composed, this section, or item of law,	8399
unless rejected at the referendum, takes effect at the earliest	8400
time permitted by law.	8401

Section 26. BUDGET STABILIZATION FUND TRANSFERS

8402

Notwithstanding section 131.43 and division (D) of section	8403
127.14 of the Revised Code, the Director of Budget and Management	8404
may, with Controlling Board approval, transfer up to $136 million	8405
in fiscal year 2002 and up to $47.1 million in fiscal year 2003	8406
from the Budget Stabilization Fund to the General Revenue Fund	8407
during fiscal year 2002 and fiscal year 2003 to help ensure that	8408
the available revenue receipts and balances in the General Revenue	8409
Fund are not less than the appropriations for each fiscal year.	8410

Notwithstanding section 131.43 and division (D) of section	8411
127.14 of the Revised Code, the Director of Budget and Management	8412
shall transfer, not later than 30 days after the effective date of	8413
this section, $8.0 million from the Budget Stabilization Fund to	8414
the General Revenue Fund. These funds shall be used for emergency	8415
purposes, to include, but not be limited to, the Department of	8416
Health for anthrax and bioterrorism testing, the Adjutant General	8417
for costs associated with the deployment of troops, armory	8418
maintenance, equipment costs and capital needs, the Department of	8419
Public Safety, and other emergency purpose expenses. These	8420
amounts are hereby appropriated for General Revenue Fund	8421
appropriation line items established by the Director of Budget and	8422
Management.	8423

Prior to utilizing these funds, the appropriate agency must	8424
receive the approval of the Controlling Board. Any of these funds	8425
unspent in fiscal year 2002 shall be transferred to fiscal year	8426
2003 by the Director of Budget and Management for the same purpose	8427
as in fiscal year 2002.	8428

The unobligated and unencumbered balance of these funds as of	8429
June 30, 2003, shall be transferred back to the Budget	8430
Stabilization Fund.	8431

Section 27. TRANSFER FROM THE TOBACCO MASTER SETTLEMENT	8432
AGREEMENT FUND TO THE GENERAL REVENUE FUND	8433

Notwithstanding section 183.02 of the Revised Code, on or	8434
before June 30, 2002, the Director of Budget and Management may	8435
transfer, with the exception of the shares transferred by the	8436
Director of Budget and Management to the Education Facilities	8437
Trust Fund (Fund N87), the Education Facilities Endowment Fund	8438
(Fund P87), and the Education Technology Trust Fund (Fund S87),	8439
pursuant to section 183.02 of the Revised Code, the balance of the	8440
Tobacco Master Settlement Agreement Fund (Fund 087) to the General	8441
Revenue Fund.	8442

Notwithstanding section 183.02 of the Revised Code, on or	8443
before June 30, 2003, the Director of Budget and Management may	8444
transfer, with the exception of the shares transferred by the	8445
Director of Budget and Management to the Education Facilities	8446
Trust Fund (Fund N87), the Education Facilities Endowment Fund	8447
(Fund P87), and the Education Technology Trust Fund (Fund S87),	8448
pursuant to section 183.02 of the Revised Code, the balance of the	8449
Tobacco Master Settlement Agreement Fund (Fund 087) to the General	8450
Revenue Fund.	8451

Section 28. APPROPRIATION REDUCTIONS

8452

(A) In addition to the appropriation reductions made by	8453
Executive Order 2001-22T, the General Revenue Fund appropriations	8454
contained in Am. Sub. H.B. 94 of the 124th General Assembly are	8455
hereby reduced by an additional two per cent for fiscal year 2002,	8456
with the following exceptions:	8457

(1) Appropriations made to the following agencies are reduced	8458
by eight per cent: the Ohio House of Representatives; the Ohio	8459
Senate; the Joint Committee on Agency Rule Review; and the Joint	8460
Legislative Ethics Committee.	8461

(2) Appropriations made to the following agencies are reduced	8462
by the amount indicated: Department of Job and Family Services -	8463
$5,139,711; Department of Aging - $1,856,989; Attorney General -	8464
$1,245,711; Department of Public Safety - $68,257; Treasurer of	8465
State - $227,879; Department of Administrative Services -	8466
$705,469; Arts and Sports Facilities Commission - $1,970;	8467
Department of Transportation - $724,445; Department of Development	8468
- $2,513,129; Environmental Protection Agency - $427,737;	8469
Department of Natural Resources - $1,738,749; Department of	8470
Health - $1,785,999.	8471

(3) Appropriations made to the following agencies are reduced	8472
by four per cent: Court of Claims; Judicial Conference of Ohio;	8473
Judiciary/Supreme Court.	8474

(B) The General Revenue Fund appropriations for fiscal year	8475
2003 contained in Am. Sub. H.B. 94 of the 124th General Assembly	8476
are hereby reduced by the dollar amount of the fiscal year 2002	8477
appropriation reduction contained in Executive Order 2001-22T plus	8478
an additional two per cent, with the following exceptions:	8479

(1) Appropriations made to the following agencies are reduced	8480
by eight per cent: Ohio House of Representatives; Ohio Senate;	8481
Joint Committee on Agency Rule Review; Joint Legislative Ethics	8482
Commission.	8483

(2) Appropriations made to the following agencies are reduced	8484
by the dollar amount of the fiscal year 2002 appropriation	8485
reduction contained in Executive Order 2001-22T plus the following	8486
amount: Department of Job and Family Services - $5,139,711;	8487
Department of Aging - $1,856,989; Attorney General - $1,245,711;	8488
Department of Public Safety - $68,257; Treasurer of State -	8489
$227,879; Department of Administrative Services - $705,469; Arts	8490
and Sports Facilities Commission - $1,970; Department of	8491
Transportation - $724,445; Department of Development - $2,513,129;	8492
Environmental Protection Agency - $427,737; Department of Natural	8493
Resources - $1,738,749; Department of Health - $1,785,999.	8494

(3) Appropriations made to the following agencies are reduced	8495
by four per cent: Court of Claims; Judicial Conference of Ohio;	8496
Judiciary/Supreme Court.	8497

(C) Appropriations made to the following agencies are exempt	8498
from the reductions made in this section: Department of Education,	8499
School Facilities Commission, SchoolNet Commission, Ohio School	8500
for the Blind, Ohio School for the Deaf, Board of Regents,	8501
Department of Mental Health, Department of Mental Retardation and	8502
Developmental Disabilities, Veterans' Organizations, Adjutant	8503
General, Legislative Service Commission, Department of Youth	8504
Services, Rehabilitation Services Commission, Department of	8505
Rehabilitation and Correction, Ohio Veterans' Home, and Public	8506
Works Commission.	8507

(D) If Executive Order 2001-22T is rescinded, the	8508
appropriation reductions contained in Executive Order 2001-22T	8509
shall still be made in fiscal year 2002.	8510

Within thirty days of the effective date of this act, the	8511
Director of Budget and Management, in collaboration with the	8512
Superintendent of Public Instruction, shall reduce the General	8513
Revenue Fund appropriations for the Department of Education	8514
contained in Am. Sub. H.B. 94 of the 124th General Assembly by $23	8515
million over fiscal year 2002 and fiscal year 2003. The following	8516
appropriation items are exempted from reductions: 200-406, Head	8517
Start; 200-416, Vocational Education Match; 200-427, Academic	8518
Standards; 200-500, School Finance Equity; 200-501, Base Cost	8519
Funding; 200-502, Pupil Transportation; 200-509, Adult Literacy	8520
Education; 200-511, Auxiliary Services; 200-520, Disadvantaged	8521
Pupil Impact Aid; 200-521, Gifted Pupil Program; 200-525, Parity	8522
Aid; 200-532, Nonpublic Administrative Cost Reimbursement;	8523
200-540, Special Education Enhancements; 200-546, Charge-off	8524
Supplement; 200-553, County MR/DD Boards Transportation Operating;	8525
200-901, Property Tax Allocation - Education; 200-906, Tangible	8526
Tax Exemption - Education.	8527

In each year of the 2001-2003 biennium if the Superintendent	8528
of Public Instruction determines that additional funds are needed	8529
to fully fund the requirements of Am. Sub. S.B. 1 of the 124th	8530
General Assembly for assessments of student performance, the	8531
Superintendent of Public Instruction may recommend the	8532
reallocation of unspent and unencumbered appropriations within the	8533
Department of Education to the General Revenue Fund appropriation	8534
item 200-437, Student Assessment, to the Director of Budget and	8535
Management. If the Director of Budget and Management determines	8536
that such a reallocation is required, the Director of Budget and	8537
Management may transfer unspent and unencumbered funds within the	8538
Department of Education as necessary to appropriation item	8539
200-437, Student Assessment.	8540

Section 29. CONDITIONAL TRANSFER TO THE LOTTERY PROFITS	8541
EDUCATION FUND GROUP	8542

Upon approval by the Governor and the Director of the Ohio	8543
Lottery to join a multijurisdictional lottery:	8544

(1) The State Lottery Commission shall transfer a minimum of	8545
$662,722,600 in fiscal year 2003 to the Lottery Profit Education	8546
Fund Group, and	8547

(2) The Director of Budget and Management shall increase the	8548
fiscal year 2003 appropriation authority in the Department of	8549
Education Lottery Profit Education Fund (017) ALI 200-612, Base	8550
Cost Funding, by $41,000,000. This amount is hereby appropriated.	8551
The Director of Budget and Management shall also decrease the	8552
fiscal year 2003 appropriation authority in the Department of	8553
Education GRF ALI 200-501, Base Cost Funding, by $41,000,000.	8554

Section 30. The General Assembly encourages and supports the	8555
Administrator of Workers' Compensation, notwithstanding sections	8556
4123.35 and 4123.40 of the Revised Code, to apply a seventy-five	8557
per cent reduction of future premium pursuant to section 4123.32	8558
of the Revised Code for private state fund employers, and public	8559
employer taxing district employers, for the period when employer	8560
premiums are next due.	8561

Section 31. (A) As used in this section:

8562

(1) "IEP" has the same meaning as defined in section 3323.01	8563
of the Revised Code.	8564

(2) "SBH student" means a student receiving special education	8565
and related services for severe behavior handicap conditions	8566
pursuant to an IEP.	8567

(B) This section applies only to a community school	8568
established under Chapter 3314. of the Revised Code that in fiscal	8569
year 2001 enrolled, and in each of fiscal years 2002 and 2003	8570
enrolls, a number of SBH students equal to at least fifty per cent	8571
of the total number of students enrolled in the school in the	8572
applicable fiscal year.	8573

(C) In addition to any payments made under section 3314.08 of	8574
the Revised Code, in each of fiscal years 2002 and 2003 the	8575
Department of Education shall pay to a community school a subsidy	8576
equal to the amount of the difference when the aggregate amount	8577
calculated and paid to the school under division (D)(2) of section	8578
3314.08 of the Revised Code for SBH students is subtracted from	8579
the aggregate amount calculated and paid to the school for such	8580
students under that division in fiscal year 2001. If the	8581
difference is a negative number, the amount of the subsidy shall	8582
be zero. If the school enrolls in either fiscal year fewer SBH	8583
students that it did in fiscal year 2001, any subsidy paid under	8584
this section shall be proportionately reduced.	8585

(D) The amount of any subsidy paid to a community school	8586
under this section shall not be deducted from any moneys	8587
calculated under Chapter 3317. of the Revised Code for payment to	8588
a school district in which any of its students are entitled to	8589
attend school under section 3313.64 or 3313.65 of the Revised	8590
Code.	8591

Section 32. This act's amendments to sections 5739.01 and	8592
5741.01 of the Revised Code apply only to leases entered into on	8593
or after the effective date of those sections as amended by this	8594
act. The amendments do not apply to the extension of a lease	8595
entered into before the effective date of those sections as	8596
amended by this act; the tax shall be calculated and collected by	8597
the lessor on each payment made by the lessee under such an	8598
extension.	8599

Section 33.  (A) Section 1309.401 (1309.528) of the Revised	8600
Code is presented in this act as a composite of the section as	8601
amended by Am. Sub. H.B. 94 and as amended and renumbered by Am.	8602
Sub. S.B. 74, both of the 124th General Assembly. The General	8603
Assembly, applying the principle stated in division (B) of section	8604
1.52 of the Revised Code that amendments are to be harmonized if	8605
reasonably capable of simultaneous operation, finds that the	8606
composite is the resulting version of the section in effect prior	8607
to the effective date of the section as presented in this act.	8608

(B) Section 41 of Am. Sub. H.B. 94 of the 124th General	8609
Assembly is presented in this act as a composite of the section as	8610
amended by both Am. Sub. H.B. 3 and Am. Sub. H.B. 299 of the	8611
124th General Assembly. The General Assembly, applying the	8612
principle stated in division (B) of section 1.52 of the Revised	8613
Code that amendments are to be harmonized if reasonably capable of	8614
simultaneous operation, finds that the composite is the resulting	8615
version of the section in effect prior to the effective date of	8616
the section as presented in this act.	8617

Section 34. Except as otherwise specifically provided in this	8618
act, the codified and uncodified sections of law amended or	8619
enacted by this act, and the items of law of which such sections	8620
are composed, are not subject to the referendum. Therefore, under	8621
Ohio Constitution, Article II, Section 1d and section 1.471 of the	8622
Revised Code, the sections as amended or enacted by this act, and	8623
the items of law of which such sections are composed, are entitled	8624
to go into immediate effect when this act becomes law.	8625

Section 35. Sections 317.33, 2701.20, 3313.37, 3313.375,	8626
3770.02, 3770.03, 3770.06, 5111.34, 5739.01, and 5741.01 of the	8627
Revised Code as amended by this act, and the items of law of which	8628
such sections as amended by this act are composed, are subject to	8629
the referendum. Therefore, under Ohio Constitution, Article II,	8630
Section 1c and section 1.471 of the Revised Code, such sections as	8631
amended by this act, and the items of law of which such sections	8632
as amended by this act are composed, take effect on the	8633
ninety-first day after this act is filed with the Secretary of	8634
State. If, however, a referendum petition is filed against any	8635
such section as amended by this act, or against any item of law of	8636
which any such section as amended by this act is composed, the	8637
section as amended by this act, or item of law, unless rejected at	8638
the referendum, takes effect at the earliest time permitted by	8639
law.	8640