SENATORS Amstutz, Spada, Carnes, Coughlin

To amend sections 102.02, 109.71, 109.77, 122.171,

1

123.024, 123.10, 124.381, 124.82, 133.20, 145.01,

2

145.012, 145.33, 151.01, 151.40, 152.09, 152.10,

3

166.01, 166.02, 166.03, 166.04, 166.05, 166.06,

4

166.07, 166.08, 166.11, 183.021, 183.19, 183.30,

5

307.23, 715.02, 1561.351, 1565.04, 1565.15,

6

1711.11, 1711.53, 2113.031, 2901.01, 2921.51,

7

2935.01, 2935.03, 2935.031, 3318.01, 3318.011,

8

3318.03, 3318.031, 3318.032, 3318.033, 3318.042,

9

3318.08, 3318.084, 3318.086, 3318.10, 3318.12,

10

3318.15, 3318.19, 3318.25, 3318.26, 3318.311,

11

3318.36, 3354.16, 3355.12, 3357.16, 3383.01,

12

3383.02, 3383.03, 3519.04, 3702.5210, 3702.5211,

13

3702.5213, 3721.01, 3737.71, 4117.01, 4117.14,

14

4123.01, 4123.35, 4582.03, 4582.20, 4582.27,

15

4582.30, 4582.46, 5709.61, 5715.20, 5717.01,

16

5731.21, 5733.021, 5733.26, 5733.40, 5733.401,

17

5739.031, 5747.01, 5747.02, 5902.02, 5902.05,

18

5907.01, 5907.02, 5907.021, 5907.022, 5907.03,

19

5907.04, 5907.05, 5907.06, 5907.07, 5907.08,

20

5907.09, 5907.10, 5907.11, 5907.12, 5907.13,

21

5907.131, 5907.14, 5907.141, 5907.15, 6103.02, and

22

6103.25; to enact new section 5747.231 and sections

23

152.101, 166.12, 166.13, 166.14, 166.15, 166.16,

24

184.01, 184.02, 184.03, 307.675, 718.151, 3318.40,

25

3318.41, 3318.42, 3318.43, 3318.44, 3318.45,

26

3318.46, 3385.01, 3385.02, 3385.03, 3385.04,

27

3385.05, 3385.06, 3385.07, 3385.08, 3385.09,

28

3385.10, 5747.011, 5747.012, and 5907.023; to

29

repeal sections 183.20, 183.21, 183.22, 183.23,

30

183.24, 183.25, and 5747.231 of the Revised Code;

31

and to amend Section 9 of Am. Sub. S.B. 242 of the

32

124th General Assembly to repeal Section 25 of Am.

33

Sub. S.B. 261 of the 124th General Assembly to make

34

capital appropriations, to modify other

35

appropriations for the biennium ending June 30,

36

2004, and to provide authorization and conditions

37

for the operation of state programs; to amend the

38

version of section 2935.03 of the Revised Code that

39

is scheduled to take effect January 1, 2004, to

40

continue the provisions of this act on and after

41

that effective date; to amend the versions of

42

sections 5739.026 and 5739.033 of the Revised Code

43

that are scheduled to take effect July 1, 2003, to

44

continue the provisions of this act on and after

45

that effective date; and to repeal Section 32.01 of

46

this act on July 1, 2003.

47

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

Section 1.01. That sections 102.02, 109.71, 109.77, 122.171,	48
123.024, 123.10, 124.381, 124.82, 133.20, 145.01, 145.012, 145.33,	49
151.01, 151.40, 152.09, 152.10, 166.01, 166.02, 166.03, 166.04,	50
166.05, 166.06, 166.07, 166.08, 166.11, 183.021, 183.19, 183.30,	51
307.23, 715.02, 1561.351, 1565.04, 1565.15, 1711.11, 1711.53,	52
2113.031, 2901.01, 2921.51, 2935.01, 2935.03, 2935.031, 3318.01,	53
3318.011, 3318.03, 3318.031, 3318.032, 3318.033, 3318.042,	54
3318.08, 3318.084, 3318.086, 3318.10, 3318.12, 3318.15, 3318.19,	55
3318.25, 3318.26, 3318.311, 3318.36, 3354.16, 3355.12, 3357.16,	56
3383.01, 3383.02, 3383.03, 3519.04, 3702.5210, 3702.5211,	57
3702.5213, 3721.01, 3737.71, 4117.01, 4117.14, 4123.01, 4123.35,	58
4582.03, 4582.20, 4582.27, 4582.30, 4582.46, 5709.61, 5715.20,	59
5717.01, 5731.21, 5733.021, 5733.26, 5733.40, 5733.401, 5739.031,	60
5747.01, 5747.02, 5902.02, 5902.05, 5907.01, 5907.02, 5907.021,	61
5907.022, 5907.03, 5907.04, 5907.05, 5907.06, 5907.07, 5907.08,	62
5907.09, 5907.10, 5907.11, 5907.12, 5907.13, 5907.131, 5907.14,	63
5907.141, 5907.15, 6103.02, and 6103.25 be amended and new section	64
5747.231 and sections 152.101, 166.12, 166.13, 166.14, 166.15,	65
166.16, 184.01, 184.02, 184.03, 307.675, 718.151, 3318.40,	66
3318.41, 3318.42, 3318.43, 3318.44, 3318.45, 3318.46, 3385.01,	67
3385.02, 3385.03, 3385.04, 3385.05, 3385.06, 3385.07, 3385.08,	68
3385.09, 3385.10, 5747.011, 5747.012, and 5907.023 of the Revised	69
Code be enacted to read as follows:	70

Sec. 102.02.  (A) Except as otherwise provided in division	71
(H) of this section, every person who is elected to or is a	72
candidate for a state, county, or city office, or the office of	73
member of the United States congress, and every person who is	74
appointed to fill a vacancy for an unexpired term in such an	75
elective office; all members of the state board of education; the	76
director, assistant directors, deputy directors, division chiefs,	77
or persons of equivalent rank of any administrative department of	78
the state; the president or other chief administrative officer of	79
every state institution of higher education as defined in section	80
3345.011 of the Revised Code; the chief executive officer of each	81
state retirement system; all members of the board of commissioners	82
on grievances and discipline of the supreme court and the ethics	83
commission created under section 102.05 of the Revised Code; every	84
business manager, treasurer, or superintendent of a city, local,	85
exempted village, joint vocational, or cooperative education	86
school district or an educational service center; every person who	87
is elected to or is a candidate for the office of member of a	88
board of education of a city, local, exempted village, joint	89
vocational, or cooperative education school district or of a	90
governing board of an educational service center that has a total	91
student count of twelve thousand or more as most recently	92
determined by the department of education pursuant to section	93
3317.03 of the Revised Code; every person who is appointed to the	94
board of education of a municipal school district pursuant to	95
division (B) or (F) of section 3311.71 of the Revised Code; all	96
members of the board of directors of a sanitary district	97
established under Chapter 6115. of the Revised Code and organized	98
wholly for the purpose of providing a water supply for domestic,	99
municipal, and public use that includes two municipal corporations	100
in two counties; every public official or employee who is paid a	101
salary or wage in accordance with schedule C of section 124.15 or	102
schedule E-2 of section 124.152 of the Revised Code; members of	103
the board of trustees and the executive director of the tobacco	104
use prevention and control foundation; members of the board of	105
trustees and the executive director of the southern Ohio	106
agricultural and community development foundation; members and the	107
executive director of the biomedical research and technology	108
transfer commission; and every other public official or employee	109
who is designated by the appropriate ethics commission pursuant to	110
division (B) of this section shall file with the appropriate	111
ethics commission on a form prescribed by the commission, a	112
statement disclosing all of the following:	113

(1) The name of the person filing the statement and each	114
member of the person's immediate family and all names under which	115
the person or members of the person's immediate family do	116
business;	117

(2)(a) Subject to divisions (A)(2)(b) and (c) of this	118
section and except as otherwise provided in section 102.022 of the	119
Revised Code, identification of every source of income, other than	120
income from a legislative agent identified in division (A)(2)(b)	121
of this section, received during the preceding calendar year, in	122
the person's own name or by any other person for the person's use	123
or benefit, by the person filing the statement, and a brief	124
description of the nature of the services for which the income was	125
received. If the person filing the statement is a member of the	126
general assembly, the statement shall identify the amount of every	127
source of income received in accordance with the following ranges	128
of amounts: zero or more, but less than one thousand dollars; one	129
thousand dollars or more, but less than ten thousand dollars; ten	130
thousand dollars or more, but less than twenty-five thousand	131
dollars; twenty-five thousand dollars or more, but less than fifty	132
thousand dollars; fifty thousand dollars or more, but less than	133
one hundred thousand dollars; and one hundred thousand dollars or	134
more. Division (A)(2)(a) of this section shall not be construed	135
to require a person filing the statement who derives income from a	136
business or profession to disclose the individual items of income	137
that constitute the gross income of that business or profession,	138
except for those individual items of income that are attributable	139
to the person's or, if the income is shared with the person, the	140
partner's, solicitation of services or goods or performance,	141
arrangement, or facilitation of services or provision of goods on	142
behalf of the business or profession of clients, including	143
corporate clients, who are legislative agents as defined in	144
section 101.70 of the Revised Code. A person who files the	145
statement under this section shall disclose the identity of and	146
the amount of income received from a person who the public	147
official or employee knows or has reason to know is doing or	148
seeking to do business of any kind with the public official's or	149
employee's agency.	150

(b) If the person filing the statement is a member of the	151
general assembly, the statement shall identify every source of	152
income and the amount of that income that was received from a	153
legislative agent, as defined in section 101.70 of the Revised	154
Code, during the preceding calendar year, in the person's own name	155
or by any other person for the person's use or benefit, by the	156
person filing the statement, and a brief description of the nature	157
of the services for which the income was received. Division	158
(A)(2)(b) of this section requires the disclosure of clients of	159
attorneys or persons licensed under section 4732.12 of the Revised	160
Code, or patients of persons certified under section 4731.14 of	161
the Revised Code, if those clients or patients are legislative	162
agents. Division (A)(2)(b) of this section requires a person	163
filing the statement who derives income from a business or	164
profession to disclose those individual items of income that	165
constitute the gross income of that business or profession that	166
are received from legislative agents.	167

(c) Except as otherwise provided in division (A)(2)(c) of	168
this section, division (A)(2)(a) of this section applies to	169
attorneys, physicians, and other persons who engage in the	170
practice of a profession and who, pursuant to a section of the	171
Revised Code, the common law of this state, a code of ethics	172
applicable to the profession, or otherwise, generally are required	173
not to reveal, disclose, or use confidences of clients, patients,	174
or other recipients of professional services except under	175
specified circumstances or generally are required to maintain	176
those types of confidences as privileged communications except	177
under specified circumstances. Division (A)(2)(a) of this section	178
does not require an attorney, physician, or other professional	179
subject to a confidentiality requirement as described in division	180
(A)(2)(c) of this section to disclose the name, other identity, or	181
address of a client, patient, or other recipient of professional	182
services if the disclosure would threaten the client, patient, or	183
other recipient of professional services, would reveal details of	184
the subject matter for which legal, medical, or professional	185
advice or other services were sought, or would reveal an otherwise	186
privileged communication involving the client, patient, or other	187
recipient of professional services. Division (A)(2)(a) of this	188
section does not require an attorney, physician, or other	189
professional subject to a confidentiality requirement as described	190
in division (A)(2)(c) of this section to disclose in the brief	191
description of the nature of services required by division	192
(A)(2)(a) of this section any information pertaining to specific	193
professional services rendered for a client, patient, or other	194
recipient of professional services that would reveal details of	195
the subject matter for which legal, medical, or professional	196
advice was sought or would reveal an otherwise privileged	197
communication involving the client, patient, or other recipient of	198
professional services.	199

(3) The name of every corporation on file with the secretary	200
of state that is incorporated in this state or holds a certificate	201
of compliance authorizing it to do business in this state, trust,	202
business trust, partnership, or association that transacts	203
business in this state in which the person filing the statement or	204
any other person for the person's use and benefit had during the	205
preceding calendar year an investment of over one thousand dollars	206
at fair market value as of the thirty-first day of December of the	207
preceding calendar year, or the date of disposition, whichever is	208
earlier, or in which the person holds any office or has a	209
fiduciary relationship, and a description of the nature of the	210
investment, office, or relationship. Division (A)(3) of this	211
section does not require disclosure of the name of any bank,	212
savings and loan association, credit union, or building and loan	213
association with which the person filing the statement has a	214
deposit or a withdrawable share account.	215

(4) All fee simple and leasehold interests to which the	216
person filing the statement holds legal title to or a beneficial	217
interest in real property located within the state, excluding the	218
person's residence and property used primarily for personal	219
recreation;	220

(5) The names of all persons residing or transacting	221
business in the state to whom the person filing the statement	222
owes, in the person's own name or in the name of any other person,	223
more than one thousand dollars. Division (A)(5) of this section	224
shall not be construed to require the disclosure of debts owed by	225
the person resulting from the ordinary conduct of a business or	226
profession or debts on the person's residence or real property	227
used primarily for personal recreation, except that the	228
superintendent of financial institutions shall disclose the names	229
of all state-chartered savings and loan associations and of all	230
service corporations subject to regulation under division (E)(2)	231
of section 1151.34 of the Revised Code to whom the superintendent	232
in the superintendent's own name or in the name of any other	233
person owes any money, and that the superintendent and any deputy	234
superintendent of banks shall disclose the names of all	235
state-chartered banks and all bank subsidiary corporations subject	236
to regulation under section 1109.44 of the Revised Code to whom	237
the superintendent or deputy superintendent owes any money.	238

(6) The names of all persons residing or transacting	239
business in the state, other than a depository excluded under	240
division (A)(3) of this section, who owe more than one thousand	241
dollars to the person filing the statement, either in the person's	242
own name or to any person for the person's use or benefit.	243
Division (A)(6) of this section shall not be construed to require	244
the disclosure of clients of attorneys or persons licensed under	245
section 4732.12 or 4732.15 of the Revised Code, or patients of	246
persons certified under section 4731.14 of the Revised Code, nor	247
the disclosure of debts owed to the person resulting from the	248
ordinary conduct of a business or profession.	249

(7) Except as otherwise provided in section 102.022 of the	250
Revised Code, the source of each gift of over seventy-five	251
dollars, or of each gift of over twenty-five dollars received by a	252
member of the general assembly from a legislative agent, received	253
by the person in the person's own name or by any other person for	254
the person's use or benefit during the preceding calendar year,	255
except gifts received by will or by virtue of section 2105.06 of	256
the Revised Code, or received from spouses, parents, grandparents,	257
children, grandchildren, siblings, nephews, nieces, uncles, aunts,	258
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,	259
fathers-in-law, mothers-in-law, or any person to whom the person	260
filing the statement stands in loco parentis, or received by way	261
of distribution from any inter vivos or testamentary trust	262
established by a spouse or by an ancestor;	263

(8) Except as otherwise provided in section 102.022 of the	264
Revised Code, identification of the source and amount of every	265
payment of expenses incurred for travel to destinations inside or	266
outside this state that is received by the person in the person's	267
own name or by any other person for the person's use or benefit	268
and that is incurred in connection with the person's official	269
duties, except for expenses for travel to meetings or conventions	270
of a national or state organization to which any state agency,	271
including, but not limited to, any legislative agency or state	272
institution of higher education as defined in section 3345.011 of	273
the Revised Code, pays membership dues, or any political	274
subdivision or any office or agency of a political subdivision	275
pays membership dues;	276

(9) Except as otherwise provided in section 102.022 of the	277
Revised Code, identification of the source of payment of expenses	278
for meals and other food and beverages, other than for meals and	279
other food and beverages provided at a meeting at which the person	280
participated in a panel, seminar, or speaking engagement or at a	281
meeting or convention of a national or state organization to which	282
any state agency, including, but not limited to, any legislative	283
agency or state institution of higher education as defined in	284
section 3345.011 of the Revised Code, pays membership dues, or	285
any political subdivision or any office or agency of a political	286
subdivision pays membership dues, that are incurred in connection	287
with the person's official duties and that exceed one hundred	288
dollars aggregated per calendar year;	289

(10) If the financial disclosure statement is filed by a	290
public official or employee described in division (B)(2) of	291
section 101.73 of the Revised Code or division (B)(2) of section	292
121.63 of the Revised Code who receives a statement from a	293
legislative agent, executive agency lobbyist, or employer that	294
contains the information described in division (F)(2) of section	295
101.73 of the Revised Code or division (G)(2) of section 121.63 of	296
the Revised Code, all of the nondisputed information contained in	297
the statement delivered to that public official or employee by the	298
legislative agent, executive agency lobbyist, or employer under	299
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of	300
the Revised Code. As used in division (A)(10) of this section,	301
"legislative agent," "executive agency lobbyist," and "employer"	302
have the same meanings as in sections 101.70 and 121.60 of the	303
Revised Code.	304

A person may file a statement required by this section in	305
person or by mail. A person who is a candidate for elective	306
office shall file the statement no later than the thirtieth day	307
before the primary, special, or general election at which the	308
candidacy is to be voted on, whichever election occurs soonest,	309
except that a person who is a write-in candidate shall file the	310
statement no later than the twentieth day before the earliest	311
election at which the person's candidacy is to be voted on. A	312
person who holds elective office shall file the statement on or	313
before the fifteenth day of April of each year unless the person	314
is a candidate for office. A person who is appointed to fill a	315
vacancy for an unexpired term in an elective office shall file the	316
statement within fifteen days after the person qualifies for	317
office. Other persons shall file an annual statement on or before	318
the fifteenth day of April or, if appointed or employed after that	319
date, within ninety days after appointment or employment. No	320
person shall be required to file with the appropriate ethics	321
commission more than one statement or pay more than one filing fee	322
for any one calendar year.	323

The appropriate ethics commission, for good cause, may extend	324
for a reasonable time the deadline for filing a statement under	325
this section.	326

A statement filed under this section is subject to public	327
inspection at locations designated by the appropriate ethics	328
commission except as otherwise provided in this section.	329

(B) The Ohio ethics commission, the joint legislative ethics	330
committee, and the board of commissioners on grievances and	331
discipline of the supreme court, using the rule-making procedures	332
of Chapter 119. of the Revised Code, may require any class of	333
public officials or employees under its jurisdiction and not	334
specifically excluded by this section whose positions involve a	335
substantial and material exercise of administrative discretion in	336
the formulation of public policy, expenditure of public funds,	337
enforcement of laws and rules of the state or a county or city, or	338
the execution of other public trusts, to file an annual statement	339
on or before the fifteenth day of April under division (A) of this	340
section. The appropriate ethics commission shall send the public	341
officials or employees written notice of the requirement by the	342
fifteenth day of February of each year the filing is required	343
unless the public official or employee is appointed after that	344
date, in which case the notice shall be sent within thirty days	345
after appointment, and the filing shall be made not later than	346
ninety days after appointment.	347

Except for disclosure statements filed by members of the	348
board of trustees and the executive director of the tobacco use	349
prevention and control foundation,and members of the board of	350
trustees and the executive director of the southern Ohio	351
agricultural and community development foundation, and members and	352
the executive director of the biomedical research and technology	353
transfer commission, disclosure statements filed under this	354
division with the Ohio ethics commission by members of boards,	355
commissions, or bureaus of the state for which no compensation is	356
received other than reasonable and necessary expenses shall be	357
kept confidential. Disclosure statements filed with the Ohio	358
ethics commission under division (A) of this section by business	359
managers, treasurers, and superintendents of city, local, exempted	360
village, joint vocational, or cooperative education school	361
districts or educational service centers shall be kept	362
confidential, except that any person conducting an audit of any	363
such school district or educational service center pursuant to	364
section 115.56 or Chapter 117. of the Revised Code may examine the	365
disclosure statement of any business manager, treasurer, or	366
superintendent of that school district or educational service	367
center. The Ohio ethics commission shall examine each disclosure	368
statement required to be kept confidential to determine whether a	369
potential conflict of interest exists for the person who filed the	370
disclosure statement. A potential conflict of interest exists if	371
the private interests of the person, as indicated by the person's	372
disclosure statement, might interfere with the public interests	373
the person is required to serve in the exercise of the person's	374
authority and duties in the person's office or position of	375
employment. If the commission determines that a potential	376
conflict of interest exists, it shall notify the person who filed	377
the disclosure statement and shall make the portions of the	378
disclosure statement that indicate a potential conflict of	379
interest subject to public inspection in the same manner as is	380
provided for other disclosure statements. Any portion of the	381
disclosure statement that the commission determines does not	382
indicate a potential conflict of interest shall be kept	383
confidential by the commission and shall not be made subject to	384
public inspection, except as is necessary for the enforcement of	385
Chapters 102. and 2921. of the Revised Code and except as	386
otherwise provided in this division.	387

(C) No person shall knowingly fail to file, on or before the	388
applicable filing deadline established under this section, a	389
statement that is required by this section.	390

(D) No person shall knowingly file a false statement that is	391
required to be filed under this section.	392

(E)(1) Except as provided in divisions (E)(2) and (3) of	393
this section, the statement required by division (A) or (B) of	394
this section shall be accompanied by a filing fee of twenty-five	395
dollars.	396

(2) The statement required by division (A) of this section	397
shall be accompanied by a filing fee to be paid by the person who	398
is elected or appointed to, or is a candidate for, any of the	399
following offices:	400

(3) No judge of a court of record or candidate for judge of	420
a court of record, and no referee or magistrate serving a court of	421
record, shall be required to pay the fee required under division	422
(E)(1) or (2) or (F) of this section.	423

(4) For any public official who is appointed to a	424
nonelective office of the state and for any employee who holds a	425
nonelective position in a public agency of the state, the state	426
agency that is the primary employer of the state official or	427
employee shall pay the fee required under division (E)(1) or (F)	428
of this section.	429

(F) If a statement required to be filed under this section	430
is not filed by the date on which it is required to be filed, the	431
appropriate ethics commission shall assess the person required to	432
file the statement a late filing fee equal to one-half of the	433
applicable filing fee for each day the statement is not filed,	434
except that the total amount of the late filing fee shall not	435
exceed one hundred dollars.	436

(G)(1) The appropriate ethics commission other than the Ohio	437
ethics commission shall deposit all fees it receives under	438
divisions (E) and (F) of this section into the general revenue	439
fund of the state.	440

(2) The Ohio ethics commission shall deposit all receipts,	441
including, but not limited to, fees it receives under divisions	442
(E) and (F) of this section and all moneys it receives from	443
settlements under division (G) of section 102.06 of the Revised	444
Code, into the Ohio ethics commission fund, which is hereby	445
created in the state treasury. All moneys credited to the fund	446
shall be used solely for expenses related to the operation and	447
statutory functions of the commission.	448

(H) Division (A) of this section does not apply to a person	449
elected or appointed to the office of precinct, ward, or district	450
committee member under Chapter 3517. of the Revised Code; a	451
presidential elector; a delegate to a national convention; village	452
or township officials and employees; any physician or psychiatrist	453
who is paid a salary or wage in accordance with schedule C of	454
section 124.15 or schedule E-2 of section 124.152 of the Revised	455
Code and whose primary duties do not require the exercise of	456
administrative discretion; or any member of a board, commission,	457
or bureau of any county or city who receives less than one	458
thousand dollars per year for serving in that position.	459

Sec. 109.71.  There is hereby created in the office of the	460
attorney general the Ohio peace officer training commission. The	461
commission shall consist of nine members appointed by the governor	462
with the advice and consent of the senate and selected as follows:	463
one member representing the public; two members who are incumbent	464
sheriffs; two members who are incumbent chiefs of police; one	465
member from the bureau of criminal identification and	466
investigation; one member from the state highway patrol; one	467
member who is the special agent in charge of a field office of the	468
federal bureau of investigation in this state; and one member from	469
the department of education, trade and industrial education	470
services, law enforcement training.	471

As used in sections 109.71 to 109.77 of the Revised Code:

472

(A) "Peace officer" means:

473

(1) A deputy sheriff, marshal, deputy marshal, member of the	474
organized police department of a township or municipal	475
corporation, member of a township police district or joint	476
township police district police force, member of a police force	477
employed by a metropolitan housing authority under division (D) of	478
section 3735.31 of the Revised Code, or township constable, who is	479
commissioned and employed as a peace officer by a political	480
subdivision of this state or by a metropolitan housing authority,	481
and whose primary duties are to preserve the peace, to protect	482
life and property, and to enforce the laws of this state,	483
ordinances of a municipal corporation, resolutions of a township,	484
or regulations of a board of county commissioners or board of	485
township trustees, or any of those laws, ordinances, resolutions,	486
or regulations;	487

(2) A police officer who is employed by a railroad company	488
and appointed and commissioned by the governor pursuant to	489
sections 4973.17 to 4973.22 of the Revised Code;	490

(3) Employees of the department of taxation engaged in the	491
enforcement of Chapter 5743. of the Revised Code and designated by	492
the tax commissioner for peace officer training for purposes of	493
the delegation of investigation powers under section 5743.45 of	494
the Revised Code;	495

(4) An undercover drug agent;

496

(5) Enforcement agents of the department of public safety	497
whom the director of public safety designates under section	498
5502.14 of the Revised Code;	499

(6) An employee of the department of natural resources who	500
is a natural resources law enforcement staff officer designated	501
pursuant to section 1501.013, a park officer designated pursuant	502
to section 1541.10, a forest officer designated pursuant to	503
section 1503.29, a preserve officer designated pursuant to section	504
1517.10, a wildlife officer designated pursuant to section	505
1531.13, or a state watercraft officer designated pursuant to	506
section 1547.521 of the Revised Code;	507

(7) An employee of a park district who is designated	508
pursuant to section 511.232 or 1545.13 of the Revised Code;	509

(8) An employee of a conservancy district who is designated	510
pursuant to section 6101.75 of the Revised Code;	511

(9) A police officer who is employed by a hospital that	512
employs and maintains its own proprietary police department or	513
security department, and who is appointed and commissioned by the	514
governor pursuant to sections 4973.17 to 4973.22 of the Revised	515
Code;	516

(10) Ohio veterans' homeVeterans' homes police officers	517
designated under section 5907.02 of the Revised Code;	518

(11) A police officer who is employed by a qualified	519
nonprofit corporation police department pursuant to section	520
1702.80 of the Revised Code;	521

(12) A state university law enforcement officer appointed	522
under section 3345.04 of the Revised Code or a person serving as a	523
state university law enforcement officer on a permanent basis on	524
June 19, 1978, who has been awarded a certificate by the executive	525
director of the Ohio peace officer training council attesting to	526
the person's satisfactory completion of an approved state, county,	527
municipal, or department of natural resources peace officer basic	528
training program;	529

(13) A special police officer employed by the department of	530
mental health pursuant to section 5119.14 of the Revised Code or	531
the department of mental retardation and developmental	532
disabilities pursuant to section 5123.13 of the Revised Code;	533

(14) A member of a campus police department appointed under	534
section 1713.50 of the Revised Code;	535

(15) A member of a police force employed by a regional	536
transit authority under division (Y) of section 306.35 of the	537
Revised Code;	538

(16) Investigators appointed by the auditor of state	539
pursuant to section 117.091 of the Revised Code and engaged in the	540
enforcement of Chapter 117. of the Revised Code;	541

(17) A special police officer designated by the	542
superintendent of the state highway patrol pursuant to section	543
5503.09 of the Revised Code or a person who was serving as a	544
special police officer pursuant to that section on a permanent	545
basis on October 21, 1997, and who has been awarded a certificate	546
by the executive director of the Ohio peace officer training	547
commission attesting to the person's satisfactory completion of an	548
approved state, county, municipal, or department of natural	549
resources peace officer basic training program;	550

(19)(18) A special police officer employed by a port	551
authority under section 4582.04 or 4582.28 of the Revised Code or	552
a person serving as a special police officer employed by a port	553
authority on a permanent basis on the effective date of this	554
amendmentMay 17, 2000, who has been awarded a certificate by the	555
executive director of the Ohio peace officer training council	556
attesting to the person's satisfactory completion of an approved	557
state, county, municipal, or department of natural resources peace	558
officer basic training program.	559

(B) "Undercover drug agent" has the same meaning as in	560
division (B)(2) of section 109.79 of the Revised Code.	561

(C) "Crisis intervention training" means training in the use	562
of interpersonal and communication skills to most effectively and	563
sensitively interview victims of rape.	564

(D) "Missing children" has the same meaning as in section	565
2901.30 of the Revised Code.	566

Sec. 109.77.  (A) As used in this section, "felony" has the	567
same meaning as in section 109.511 of the Revised Code.	568

(B)(1) Notwithstanding any general, special, or local law or	569
charter to the contrary, and except as otherwise provided in this	570
section, no person shall receive an original appointment on a	571
permanent basis as any of the following unless the person	572
previously has been awarded a certificate by the executive	573
director of the Ohio peace officer training commission attesting	574
to the person's satisfactory completion of an approved state,	575
county, municipal, or department of natural resources peace	576
officer basic training program:	577

(a) A peace officer of any county, township, municipal	578
corporation, regional transit authority, or metropolitan housing	579
authority;	580

(b) A natural resources law enforcement staff officer, park	581
officer, forest officer, preserve officer, wildlife officer, or	582
state watercraft officer of the department of natural resources;	583

(c) An employee of a park district under section 511.232 or	584
1545.13 of the Revised Code;	585

(d) An employee of a conservancy district who is designated	586
pursuant to section 6101.75 of the Revised Code;	587

(e) A state university law enforcement officer;

588

(f) A special police officer employed by the department of	589
mental health pursuant to section 5119.14 of the Revised Code or	590
the department of mental retardation and developmental	591
disabilities pursuant to section 5123.13 of the Revised Code;	592

(g) An enforcement agent of the department of public safety	593
whom the director of public safety designates under section	594
5502.14 of the Revised Code;	595

(h) A special police officer employed by a port authority	596
under section 4582.04 or 4582.28 of the Revised Code.	597

(2) Every person who is appointed on a temporary basis or	598
for a probationary term or on other than a permanent basis as any	599
of the following shall forfeit the appointed position unless the	600
person previously has completed satisfactorily or, within the time	601
prescribed by rules adopted by the attorney general pursuant to	602
section 109.74 of the Revised Code, satisfactorily completes a	603
state, county, municipal, or department of natural resources peace	604
officer basic training program for temporary or probationary	605
officers and is awarded a certificate by the director attesting to	606
the satisfactory completion of the program:	607

(a) A peace officer of any county, township, municipal	608
corporation, regional transit authority, or metropolitan housing	609
authority;	610

(b) A natural resources law enforcement staff officer, park	611
officer, forest officer, preserve officer, wildlife officer, or	612
state watercraft officer of the department of natural resources;	613

(c) An employee of a park district under section 511.232 or	614
1545.13 of the Revised Code;	615

(d) An employee of a conservancy district who is designated	616
pursuant to section 6101.75 of the Revised Code;	617

(e) A special police officer employed by the department of	618
mental health pursuant to section 5119.14 of the Revised Code or	619
the department of mental retardation and developmental	620
disabilities pursuant to section 5123.13 of the Revised Code;	621

(f) An enforcement agent of the department of public safety	622
whom the director of public safety designates under section	623
5502.14 of the Revised Code;	624

(g) A special police officer employed by a port authority	625
under section 4582.04 or 4582.28 of the Revised Code.	626

(3) For purposes of division (B) of this section, a state,	627
county, municipal, or department of natural resources peace	628
officer basic training program, regardless of whether the program	629
is to be completed by peace officers appointed on a permanent or	630
temporary, probationary, or other nonpermanent basis, shall	631
include at least fifteen hours of training in the handling of the	632
offense of domestic violence, other types of domestic	633
violence-related offenses and incidents, and protection orders and	634
consent agreements issued or approved under section 2919.26 or	635
3113.31 of the Revised Code and at least six hours of crisis	636
intervention training. The requirement to complete fifteen hours	637
of training in the handling of the offense of domestic violence,	638
other types of domestic violence-related offenses and incidents,	639
and protection orders and consent agreements issued or approved	640
under section 2919.26 or 3113.31 of the Revised Code does not	641
apply to any person serving as a peace officer on March 27, 1979,	642
and the requirement to complete six hours of training in crisis	643
intervention does not apply to any person serving as a peace	644
officer on April 4, 1985. Any person who is serving as a peace	645
officer on April 4, 1985, who terminates that employment after	646
that date, and who subsequently is hired as a peace officer by the	647
same or another law enforcement agency shall complete the six	648
hours of training in crisis intervention within the time	649
prescribed by rules adopted by the attorney general pursuant to	650
section 109.742 of the Revised Code. No peace officer shall have	651
employment as a peace officer terminated and then be reinstated	652
with intent to circumvent this section.	653

(4) Division (B) of this section does not apply to any	654
person serving on a permanent basis on March 28, 1985, as a park	655
officer, forest officer, preserve officer, wildlife officer, or	656
state watercraft officer of the department of natural resources or	657
as an employee of a park district under section 511.232 or 1545.13	658
of the Revised Code, to any person serving on a permanent basis on	659
March 6, 1986, as an employee of a conservancy district designated	660
pursuant to section 6101.75 of the Revised Code, to any person	661
serving on a permanent basis on January 10, 1991, as a preserve	662
officer of the department of natural resources, to any person	663
employed on a permanent basis on July 2, 1992, as a special police	664
officer by the department of mental health pursuant to section	665
5119.14 of the Revised Code or by the department of mental	666
retardation and developmental disabilities pursuant to section	667
5123.13 of the Revised Code, to any person serving on a permanent	668
basis on the effective date of this amendmentMay 17, 2000, as a	669
special police officer employed by a port authority under section	670
4582.04 or 4582.28 of the Revised Code, to any person serving on a	671
permanent basis on June 19, 1978, as a state university law	672
enforcement officer pursuant to section 3345.04 of the Revised	673
Code and who, immediately prior to June 19, 1978, was serving as a	674
special police officer designated under authority of that section,	675
or to any person serving on a permanent basis on September 20,	676
1984, as a liquor control investigator, known after June 30, 1999,	677
as an enforcement agent of the department of public safety,	678
engaged in the enforcement of Chapters 4301. and 4303. of the	679
Revised Code.	680

(5) Division (B) of this section does not apply to any	681
person who is appointed as a regional transit authority police	682
officer pursuant to division (Y) of section 306.35 of the Revised	683
Code if, on or before July 1, 1996, the person has completed	684
satisfactorily an approved state, county, municipal, or department	685
of natural resources peace officer basic training program and has	686
been awarded a certificate by the executive director of the Ohio	687
peace officer training commission attesting to the person's	688
satisfactory completion of such an approved program and if, on	689
July 1, 1996, the person is performing peace officer functions for	690
a regional transit authority.	691

(C) No person, after September 20, 1984, shall receive an	692
original appointment on a permanent basis as an Ohioa veterans'	693
home police officer designated under section 5907.02 of the	694
Revised Code unless the person previously has been awarded a	695
certificate by the executive director of the Ohio peace officer	696
training commission attesting to the person's satisfactory	697
completion of an approved police officer basic training program.	698
Every person who is appointed on a temporary basis or for a	699
probationary term or on other than a permanent basis as an Ohioa	700
veterans' home police officer designated under section 5907.02 of	701
the Revised Code shall forfeit that position unless the person	702
previously has completed satisfactorily or, within one year from	703
the time of appointment, satisfactorily completes an approved	704
police officer basic training program.	705

(D) No bailiff or deputy bailiff of a court of record of	706
this state and no criminal investigator who is employed by the	707
state public defender shall carry a firearm, as defined in section	708
2923.11 of the Revised Code, while on duty unless the bailiff,	709
deputy bailiff, or criminal investigator has done or received one	710
of the following:	711

(1) Has been awarded a certificate by the executive director	712
of the Ohio peace officer training commission, which certificate	713
attests to satisfactory completion of an approved state, county,	714
or municipal basic training program for bailiffs and deputy	715
bailiffs of courts of record and for criminal investigators	716
employed by the state public defender that has been recommended by	717
the Ohio peace officer training commission;	718

(2) Has successfully completed a firearms training program	719
approved by the Ohio peace officer training commission prior to	720
employment as a bailiff, deputy bailiff, or criminal investigator;	721

(3) Prior to June 6, 1986, was authorized to carry a firearm	722
by the court that employed the bailiff or deputy bailiff or, in	723
the case of a criminal investigator, by the state public defender	724
and has received training in the use of firearms that the Ohio	725
peace officer training commission determines is equivalent to the	726
training that otherwise is required by division (D) of this	727
section.	728

(E)(1) Prior to awarding any certificate prescribed in this	729
section, the executive director of the Ohio peace officer training	730
commission shall request the person to whom the certificate is to	731
be awarded to disclose, and the person shall disclose, any	732
previous criminal conviction of or plea of guilty of that person	733
to a felony.	734

(2) Prior to the award by the executive director of the	735
commission of any certificate prescribed in this section, the	736
prospective employer of the person to whom the certificate is to	737
be awarded or the commander of the peace officer training school	738
attended by that person shall request the bureau of criminal	739
identification and investigation to conduct a criminal history	740
records check on the person. Upon receipt of the request, the	741
bureau promptly shall conduct a criminal history records check on	742
the person and, upon completion of the check, promptly shall	743
provide a copy of the criminal history records check to the	744
prospective employer or peace officer training school commander	745
that made the request. Upon receipt of the copy of the criminal	746
history records check from the bureau, the prospective employer or	747
peace officer training school commander that made the request	748
shall submit the copy to the executive director of the Ohio peace	749
officer training commission. The executive director shall not	750
award any certificate prescribed in this section unless the	751
executive director has received a copy of the criminal history	752
records check on the person to whom the certificate is to be	753
awarded.	754

(3) The executive director of the commission shall not award	755
a certificate prescribed in this section to a person who has been	756
convicted of or has pleaded guilty to a felony or who fails to	757
disclose any previous criminal conviction of or plea of guilty to	758
a felony as required under division (E)(1) of this section.	759

(4) The executive director of the commission shall revoke	760
the certificate awarded to a person as prescribed in this section,	761
and that person shall forfeit all of the benefits derived from	762
being certified as a peace officer under this section, if the	763
person, prior to the award of the certificate, failed to disclose	764
any previous criminal conviction of or plea of guilty to a felony	765
as required under division (E)(1) of this section.	766

(F)(1) Regardless of whether the person has been awarded the	767
certificate or has been classified as a peace officer prior to,	768
on, or after October 16, 1996, the executive director of the Ohio	769
peace officer training commission shall revoke any certificate	770
that has been awarded to a person as prescribed in this section if	771
the person does either of the following:	772

(a) Pleads guilty to a felony committed on or after January	773
1, 1997.	774

(b) Pleads guilty to a misdemeanor committed on or after	775
January 1, 1997, pursuant to a negotiated plea agreement as	776
provided in division (D) of section 2929.29 of the Revised Code in	777
which the person agrees to surrender the certificate awarded to	778
the person under this section.	779

(2) The executive director of the commission shall suspend	780
any certificate that has been awarded to a person as prescribed in	781
this section if the person is convicted, after trial, of a felony	782
committed on or after January 1, 1997. The executive director	783
shall suspend the certificate pursuant to division (F)(2) of this	784
section pending the outcome of an appeal by the person from that	785
conviction to the highest court to which the appeal is taken or	786
until the expiration of the period in which an appeal is required	787
to be filed. If the person files an appeal that results in that	788
person's acquittal of the felony or conviction of a misdemeanor,	789
or in the dismissal of the felony charge against that person, the	790
executive director shall reinstate the certificate awarded to the	791
person under this section. If the person files an appeal from	792
that person's conviction of the felony and the conviction is	793
upheld by the highest court to which the appeal is taken or if the	794
person does not file a timely appeal, the executive director shall	795
revoke the certificate awarded to the person under this section.	796

(G)(1) If a person is awarded a certificate under this	797
section and the certificate is revoked pursuant to division (E)(4)	798
or (F) of this section, the person shall not be eligible to	799
receive, at any time, a certificate attesting to the person's	800
satisfactory completion of a peace officer basic training program.	801

(2) The revocation or suspension of a certificate under	802
division (E)(4) or (F) of this section shall be in accordance with	803
Chapter 119. of the Revised Code.	804

(H)(1) A person who was employed as a peace officer of a	805
county, township, or municipal corporation of the state on January	806
1, 1966, and who has completed at least sixteen years of full-time	807
active service as such a peace officer may receive an original	808
appointment on a permanent basis and serve as a peace officer of a	809
county, township, or municipal corporation, or as a state	810
university law enforcement officer, without complying with the	811
requirements of division (B) of this section.	812

(2) Any person who held an appointment as a state highway	813
trooper on January 1, 1966, may receive an original appointment on	814
a permanent basis and serve as a peace officer of a county,	815
township, or municipal corporation, or as a state university law	816
enforcement officer, without complying with the requirements of	817
division (B) of this section.	818

(I) No person who is appointed as a peace officer of a	819
county, township, or municipal corporation on or after April 9,	820
1985, shall serve as a peace officer of that county, township, or	821
municipal corporation unless the person has received training in	822
the handling of missing children and child abuse and neglect cases	823
from an approved state, county, township, or municipal police	824
officer basic training program or receives the training within the	825
time prescribed by rules adopted by the attorney general pursuant	826
to section 109.741 of the Revised Code.	827

(J) No part of any approved state, county, or municipal	828
basic training program for bailiffs and deputy bailiffs of courts	829
of record and no part of any approved state, county, or municipal	830
basic training program for criminal investigators employed by the	831
state public defender shall be used as credit toward the	832
completion by a peace officer of any part of the approved state,	833
county, or municipal peace officer basic training program that the	834
peace officer is required by this section to complete	835
satisfactorily.	836

(K) This section does not apply to any member of the police	837
department of a municipal corporation in an adjoining state	838
serving in this state under a contract pursuant to section 737.04	839
of the Revised Code.	840

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

841

(1) "Capital investment project" means a plan of investment	842
at a project site for the acquisition, construction, renovation,	843
or repair of buildings, machinery, or equipment, or for	844
capitalized costs of basic research and new product development	845
determined in accordance with generally accepted accounting	846
principles, but does not include any of the following:	847

(a) Payments made for the acquisition of personal property	848
through operating leases;	849

(b) Project costs paid before January 1, 2002, or after	850
December 31, 2006;	851

(c) Payments made to a related member as defined in section	852
5733.042 of the Revised Code.	853

(2) "Eligible business" means a business with Ohio	854
operations thatsatisfying all of the following:	855

(a) Employed an average of at least one thousand employees	856
in full-time employment positions at a project site during each of	857
the twelve months preceding the application for a tax credit under	858
this section; and	859

(b) On or after January 1, 2002, has made payments for the	860
capital investment project of ateither of the following:	861

(i) At least two hundred million dollars at the project	862
site during a period of three consecutive calendar years that	863
includesincluding the calendar year that includes a day of the	864
taxpayer's taxable year with respect to which the credit is	865
granted;	866

(ii) If the average wage of all employment positions at the	867
project site is greater than four hundred per cent of the federal	868
minimum wage, at least one hundred million dollars at the project	869
site during a period of three consecutive calendar years including	870
the calendar year that includes a day of the taxpayer's taxable	871
year with respect to which the credit is granted.	872

(c) Is engaged at the project site primarily as a	873
manufacturer or is providing significant corporate administrative	874
functions;	875

(d) Has had a capital investment project reviewed and	876
approved by the tax credit authority as provided in divisions (C),	877
(D), and (E) of this section.	878

(3) "Full-time employment position" means a position of	879
employment for consideration for at least thirty-five hours a	880
week, or any other standard of service generally accepted by	881
custom as full-time employment within the industry, that has been	882
filled for at least one hundred eighty days immediately preceding	883
the filing of an application under this section, and for at least	884
one hundred eighty days during each taxable year with respect to	885
which the credit is granted.	886

(4) "Manufacturer" has the same meaning as in section	887
5739.011 of the Revised Code.	888

(5) "Project site" means an integrated complex of facilities	889
in this state, as specified by the tax credit authority under this	890
section, within a five-milefifteen-mile radius where a taxpayer	891
in this state is primarily operating as a manufacturer as defined	892
in section 5739.011 of the Revised Code.	893

(B) The tax credit authority created under section 122.17 of	894
the Revised Code may grant tax credits under this section for the	895
purpose of fostering job retention in this state. Upon	896
application by an eligible business and upon consideration of the	897
recommendation of the director of budget and management, tax	898
commissioner, and director of development under division (C) of	899
this section, the tax credit authority may grant to an eligible	900
business a nonrefundable credit against the tax imposed by section	901
5733.06 or 5747.02 of the Revised Code for a period up to ten	902
taxable years. The credit shall be in an amount not exceeding	903
seventy-five per cent of the Ohio income tax withheld from the	904
employees of the eligible business occupying full-time employment	905
positions at the project site during the calendar year that	906
includes the last day of such business' taxable year with respect	907
to which the credit is granted. The amount of the credit shall	908
not be based on the Ohio income tax withheld from full-time	909
employees for a calendar year prior to the calendar year in which	910
the two hundred million dollar minimum investment requirement	911
referred to in division (A)(2)(b) of this section is completed.	912
The credit shall be claimed only for the taxable years specified	913
in the eligible business' agreement with the tax credit authority	914
under division (E) of this section, but in no event shall the	915
credit be claimed for a taxable year terminating before the date	916
specified in the agreement.	917

Any unused portion of a tax credit may be carried forward for	918
not more than three additional years after the year for which the	919
credit is granted.	920

(C) A taxpayer whothat proposes a capital investment	921
project to retain jobs in this state may apply to the tax credit	922
authority to enter into an agreement for a tax credit under this	923
section. The director of development shall prescribe the form of	924
the application. After receipt of an application, the authority	925
shall forward copies of the application to the director of budget	926
and management, the tax commissioner, and the director of	927
development, each of whom shall review the application to	928
determine the economic impact the proposed project would have on	929
the state and the affected political subdivisions and shall submit	930
a summary of their determinations and recommendations to the	931
authority. The authority shall make no agreements under this	932
section after June 30, 2007.	933

(D) Upon review of the determinations and recommendations	934
described in division (C) of this section, the tax credit	935
authority may enter into an agreement with the taxpayer for a	936
credit under this section if itthe authority determines all of	937
the following:	938

(1) The taxpayer's capital investment project will result in	939
the retention of full-time employment positions in this state.	940

(2) The taxpayer is economically sound and has the ability	941
to complete the proposed capital investment project.	942

(3) The taxpayer intends to and has the ability to maintain	943
operations at the project site for at least twice the term of the	944
credit.	945

(4) Receiving the credit is a major factor in the taxpayer's	946
decision to begin, continue with, or complete the project.	947

(5) The political subdivisions in which the project is	948
located have agreed to provide substantial financial support to	949
the project.	950

(E) An agreement under this section shall include all of the	951
following:	952

(1) A detailed description of the project that is the	953
subject of the agreement, including the amount of the investment,	954
the period over which the investment has been or is being made,	955
and the number of full-time employment positions at the project	956
site;.	957

(2) The method of calculating the number of full-time	958
employment positions as specified in division (A)(3) of this	959
section;.	960

(3) The term and percentage of the tax credit, and the	961
first year for which the credit may be claimed;.	962

(4) A requirement that the taxpayer maintain operations at	963
the project site for at least twice the number of years as the	964
term of the credit;.	965

(5) A requirement that the taxpayer retain a specified	966
number of full-time employment positions at the project site and	967
within this state for the term of the credit, including a	968
requirement that the taxpayer continue to employ at least one	969
thousand employees in full-time employment positions at the	970
project site during the entire term of any agreement, subject to	971
division (E)(7) of this section;.	972

(6) A requirement that the taxpayer annually report to the	973
director of development the number of full-time employment	974
positions subject to the credit, the amount of tax withheld from	975
employees in those positions, the amount of the payments made for	976
the capital investment project, and any other information the	977
director needs to perform the director's duties under this	978
section;.	979

(7) A requirement that the director of development annually	980
review the annual reports of the taxpayer to verify the	981
information reported under division (E)(6) of this section and	982
compliance with the agreement. Upon verification, the director	983
shall issue a certificate to the taxpayer stating that the	984
information has been verified and identifying the amount of the	985
credit for the taxable year. The director shall not issue a	986
certificate for any year in which the total number of filled	987
full-time employment positions for each day of the calendar year	988
divided by three hundred sixty-five is less than ninety per cent	989
of the full-time employment positions specified in division (E)(5)	990
of this section. In determining the number of full-time	991
employment positions, no position shall be counted that is filled	992
by an employee who is included in the calculation of a tax credit	993
under section 122.17 of the Revised Code.	994

(8)(a) A provision requiring that the taxpayer, except as	995
otherwise provided in division (E)(8)(b) of this section, shall	996
not relocate employment positions from elsewhere in this state to	997
the project site that is the subject of the agreement for the	998
lesser of five years from the date the agreement is entered into	999
or the number of years the taxpayer is entitled to claim the	1000
credit.	1001

(b) The taxpayer may relocate employment positions from	1002
elsewhere in this state to the project site that is the subject of	1003
the agreement if the director of development determines both of	1004
the following:	1005

(i) That the site from which the employment positions would	1006
be relocated is inadequate to meet market and industry conditions,	1007
expansion plans, consolidation plans, or other business	1008
considerations affecting the taxpayer;	1009

(ii) That the legislative authority of the county, township,	1010
or municipal corporation from which the employment positions would	1011
be relocated has been notified of the relocation.	1012

For purposes of this section, the movement of an employment	1013
position from one political subdivision to another political	1014
subdivision shall be considered a relocation of an employment	1015
position unless the movement is confined to the project site. The	1016
transfer of an individual employee from one political subdivision	1017
to another political subdivision shall not be considered a	1018
relocation of an employment position as long as the individual's	1019
employment position in the first political subdivision is	1020
refilled.	1021

(9) A waiver by the taxpayer of any limitations periods	1022
relating to assessments or adjustments resulting from the	1023
taxpayer's failure to comply with the agreement.	1024

(F) If a taxpayer fails to meet or comply with any condition	1025
or requirement set forth in a tax credit agreement, the tax credit	1026
authority may amend the agreement to reduce the percentage or term	1027
of the credit. The reduction of the percentage or term shall take	1028
effect in the taxable year immediately following the taxable year	1029
in which the authority amends the agreement. If the taxpayer	1030
relocates employment positions in violation of the provision	1031
required under division (D)(8)(a) of this section, the taxpayer	1032
shall not claim the tax credit under section 5733.0610 of the	1033
Revised Code for any tax years following the calendar year in	1034
which the relocation occurs, or shall not claim the tax credit	1035
under section 5747.058 of the Revised Code for the taxable year in	1036
which the relocation occurs and any subsequent taxable years.	1037

(G) Financial statements and other information submitted to	1038
the department of development or the tax credit authority by an	1039
applicant for or recipient of a tax credit under this section, and	1040
any information taken for any purpose from such statements or	1041
information, are not public records subject to section 149.43 of	1042
the Revised Code. However, the chairperson of the authority may	1043
make use of the statements and other information for purposes of	1044
issuing public reports or in connection with court proceedings	1045
concerning tax credit agreements under this section. Upon the	1046
request of the tax commissioner, the chairperson of the authority	1047
shall provide to the commissioner any statement or other	1048
information submitted by an applicant for or recipient of a tax	1049
credit in connection with the credit. The commissioner shall	1050
preserve the confidentiality of the statement or other	1051
information.	1052

(H) A taxpayer claiming a tax credit under this section	1053
shall submit to the tax commissioner a copy of the director of	1054
development's certificate of verification under division (E)(7) of	1055
this section for the taxable year. However, failure to submit a	1056
copy of the certificate does not invalidate a claim for a credit.	1057

(I) For the purposes of this section, a taxpayer may include	1058
a partnership, a corporation that has made an election under	1059
subchapter S of chapter one of subtitle A of the Internal Revenue	1060
Code, or any other business entity through which income flows as a	1061
distributive share to its owners. A tax credit received under	1062
this section by a partnership, S-corporation, or other such	1063
business entity shall be apportioned among the persons to whom the	1064
income or profit of the partnership, S-corporation, or other	1065
entity is distributed, in the same proportions as those in which	1066
the income or profit is distributed.	1067

(J) If the director of development determines that a	1068
taxpayer who hasthat received a tax credit under this section is	1069
not complying with the requirement under division (E)(4) of this	1070
section or reduces the number of employees agreed to under	1071
division (E)(5) of this section by more than ten per cent, the	1072
director shall notify the tax credit authority of the	1073
noncompliance. After receiving such a notice, and after giving	1074
the taxpayer an opportunity to explain the noncompliance, the	1075
authority may terminate the agreement and require the taxpayer to	1076
refund to the state all or a portion of the credit claimed in	1077
previous years, as follows:	1078

(1) If the taxpayer maintained operations at the project	1079
site for less than the term of the credit, the amount required to	1080
be refunded shall not exceed the amount of any tax credits	1081
previously allowed and received under this section.	1082

(2) If the taxpayer maintained operations at the project	1083
site longer than the term of the credit but less than one and	1084
one-half times the term of the credit, the amount required to be	1085
refunded shall not exceed fifty per cent of the sum of any tax	1086
credits previously allowed and received under this section.	1087

(3) If the taxpayer maintained operations at the project	1088
site for at least one and one-half times the term of the credit	1089
but less than twice the term of the credit, the amount required to	1090
be refunded shall not exceed twenty-five per cent of the sum of	1091
any tax credits previously allowed and received under this	1092
section.	1093

In determining the portion of the credit to be refunded to	1094
this state, the authority shall consider the effect of market	1095
conditions on the taxpayer's project and whether the taxpayer	1096
continues to maintain other operations in this state. After	1097
making the determination, the authority shall certify the amount	1098
to be refunded to the tax commissioner. The commissioner shall	1099
make an assessment for that amount against the taxpayer under	1100
Chapter 5733. or 5747. of the Revised Code. The time limitations	1101
on assessments under Chapter 5733. or 5747. of the Revised Code do	1102
not apply to an assessment under this division, but the	1103
commissioner shall make the assessment within one year after the	1104
date the authority certifies to the commissioner the amount to be	1105
refunded.	1106

If the director of development determines that a taxpayer	1107
that received a tax credit under this section has reduced the	1108
number of employees agreed to under division (E)(5) of this	1109
section by more than ten per cent, the director shall notify the	1110
tax credit authority of the noncompliance. After receiving such	1111
notice, and after providing the taxpayer an opportunity to explain	1112
the noncompliance, the authority may amend the agreement to reduce	1113
the percentage or term of the tax credit. The reduction in the	1114
percentage or term shall take effect in the taxable year in which	1115
the authority amends the agreement.	1116

(K) The director of development, after consultation with the	1117
tax commissioner and in accordance with Chapter 119. of the	1118
Revised Code, shall adopt rules necessary to implement this	1119
section. The rules may provide for recipients of tax credits	1120
under this section to be charged fees to cover administrative	1121
costs of the tax credit program. At the time the director gives	1122
public notice under division (A) of section 119.03 of the Revised	1123
Code of the adoption of the rules, the director shall submit	1124
copies of the proposed rules to the chairpersons of the standing	1125
committees on economic development in the senate and the house of	1126
representatives.	1127

(L) On or before the thirty-first day of March of each year,	1128
the director of development shall submit a report to the governor,	1129
the president of the senate, and the speaker of the house of	1130
representatives on the tax credit program under this section. The	1131
report shall include information on the number of agreements that	1132
were entered into under this section during the preceding calendar	1133
year, a description of the project that is the subject of each	1134
such agreement, and an update on the status of projects under	1135
agreements entered into before the preceding calendar year.	1136

Sec. 123.024.  (A) The department of administrative services	1137
shall assign and make available, at state expense, suitable office	1138
space in state-owned facilities to accommodate the office	1139
operations of the state headquarters of all of the following:	1140

(1) All veterans organizations in this state that either are	1141
incorporated and issued a charter by the congress of the United	1142
States or are recognized by the United States department of	1143
veterans affairs;	1144

(2) The auxiliary organizations of veterans organizations	1145
described in division (A)(1) of this section;	1146

(3) The Ohio veterans' home agency.

1147

(B) The department may situate office space for each	1148
auxiliary organization of a veterans organization with or near the	1149
office space of that veterans organization.	1150

Sec. 123.10. (A) The director of administrative services	1151
shall regulate the rate of tolls to be collected on the public	1152
works of the state, and shall fix all rentals and collect all	1153
tolls, rents, fines, commissions, fees, and allother revenues	1154
arising from any source in the public works, including the sale,	1155
construction, purchase, or rental of property.	1156

(B) There is hereby created in the state treasury the state	1157
architect's fund which shall consist of money received by the	1158
department of administrative services under division (A) of this	1159
section, transfers of money to the fund authorized by the general	1160
assembly, and such percentage of the investment earnings of the	1161
administrative building fund created in section 152.101 of the	1162
Revised Code as the director of budget and management determines	1163
to be appropriate. Money in the fund shall be used by the	1164
department of administrative services for the following purposes:	1165

(1) To pay personnel and other administrative expenses of	1166
the department;	1167

(2) To pay the cost of conducting evaluations of public	1168
works;	1169

(3) To pay the cost of building design specifications;

1170

(4) To pay the cost of providing project management	1171
services;	1172

(5) Any other purposes that the director of administrative	1173
services determines to be necessary for the department to execute	1174
its duties under this chapter.	1175

Sec. 124.381.  Each employee of the department of	1176
rehabilitation and correction, the department of mental health,	1177
the department of mental retardation and developmental	1178
disabilities, the Ohio veteran's home agency, or the Ohio schools	1179
for the deaf and blind, and each employee of the department of	1180
youth services as established in division (A) of section 124.14 of	1181
the Revised Code who suffers bodily injury inflicted by an inmate,	1182
patient, client, youth, or student in the facilities of these	1183
agencies during the time the employee is lawfully carrying out the	1184
assigned duties of the employee's position shall be paid the	1185
employee's total rate of pay during the period the employee is	1186
disabled as a result of that injury, but in no case to exceed one	1187
hundred twenty work days, in lieu of workers' compensation. Pay	1188
made according to this section shall not be charged to the	1189
employee's accumulation of sick leave credit.	1190

The director of administrative services shall adopt rules for	1191
the administration of the occupational injury leave program. The	1192
rules shall include, but not be limited to, provisions for	1193
determining a disability, for filing a claim for leave under this	1194
section, and for allowing or denying claims for the leave.	1195

During the time an employee is receiving injury compensation	1196
as provided in this section, the employee shall be exempt from the	1197
accumulation of vacation leave credit under section 124.134 of the	1198
Revised Code but shall continue to receive sick leave credit and	1199
personal leave credit under sections 124.382 and 124.386 of the	1200
Revised Code.	1201

In any case when an employee's disability, as covered by this	1202
section, extends beyond one hundred twenty work days, the employee	1203
shall immediately become subject to sections 124.382 and 124.385	1204
of the Revised Code regarding sick leave and disability leave	1205
benefits.	1206

An appointing authority may apply to the director of	1207
administrative services to grant injury leave in accordance with	1208
this section to law enforcement personnel employed by the agency.	1209

Sec. 124.82.  (A) Except as provided in division (D) of this	1210
section, the department of administrative services, in	1211
consultation with the superintendent of insurance, shall, in	1212
accordance with competitive selection procedures of Chapter 125.	1213
of the Revised Code, contract with an insurance company or a	1214
health plan in combination with an insurance company, authorized	1215
to do business in this state, for the issuance of a policy or	1216
contract of health, medical, hospital, dental, or surgical	1217
benefits, or any combination of those benefits, covering state	1218
employees who are paid directly by warrant of the auditor of	1219
state, including elected state officials. The department may	1220
fulfill its obligation under this division by exercising its	1221
authority under division (A)(2) of section 124.81 of the Revised	1222
Code.	1223

(B) The department may, in addition, in consultation with	1224
the superintendent of insurance, negotiate and contract with	1225
health insuring corporations holding a certificate of authority	1226
under Chapter 1751. of the Revised Code, in their approved service	1227
areas only, for issuance of a contract or contracts of health care	1228
services, covering state employees who are paid directly by	1229
warrant of the auditor of state, including elected state	1230
officials. Except for health insuring corporations, no more than	1231
one insurance carrier or health plan shall be contracted with to	1232
provide the same plan of benefits, provided that:	1233

(1) The amount of the premium or cost for such coverage	1234
contributed by the state, for an individual or for an individual	1235
and the individual's family, does not exceed that same amount of	1236
the premium or cost contributed by the state under division (A) of	1237
this section;	1238

(2) The employee be permitted to exercise the option as to	1239
which plan the employee will select under division (A) or (B) of	1240
this section, at a time that shall be determined by the	1241
department;	1242

(3) The health insuring corporations do not refuse to accept	1243
the employee, or the employee and the employee's family, if the	1244
employee exercises the option to select care provided by the	1245
corporations;	1246

(4) The employee may choose participation in only one of the	1247
plans sponsored by the department;	1248

(5) The director of health examines and certifies to the	1249
department that the quality and adequacy of care rendered by the	1250
health insuring corporations meet at least the standards of care	1251
provided by hospitals and physicians in that employee's community,	1252
who would be providing such care as would be covered by a contract	1253
awarded under division (A) of this section.	1254

(C) All or any portion of the cost, premium, or charge for	1255
the coverage in divisions (A) and (B) of this section may be paid	1256
in such manner or combination of manners as the department	1257
determines and may include the proration of health care costs,	1258
premiums, or charges for part-time employees.	1259

(D) Notwithstanding division (A) of this section, the	1260
department may provide benefits equivalent to those that may be	1261
paid under a policy or contract issued by an insurance company or	1262
a health plan pursuant to division (A) of this section.	1263

(E) This section does not prohibit the state office of	1264
collective bargaining from entering into an agreement with an	1265
employee representative for the purposes of providing fringe	1266
benefits, including, but not limited to, hospitalization, surgical	1267
care, major medical care, disability, dental care, vision care,	1268
medical care, hearing aids, prescription drugs, group life	1269
insurance, sickness and accident insurance, group legal services	1270
or other benefits, or any combination thereofof those benefits,	1271
to employees paid directly by warrant of the auditor of state	1272
through a jointly administered trust fund. The employer's	1273
contribution for the cost of the benefit care shall be mutually	1274
agreed to in the collectively bargained agreement. The amount,	1275
type, and structure of fringe benefits provided under this	1276
division is subject to the determination of the board of trustees	1277
of the jointly administered trust fund. Notwithstanding any other	1278
provision of the Revised Code, competitive bidding does not apply	1279
to the purchase of fringe benefits for employees under this	1280
division when suchthose benefits are provided through a jointly	1281
administered trust fund.	1282

(F) Members of state boards andor commissions who are	1283
members of the public employees retirement system may be covered	1284
by any policy, contract, or plan of benefits or services described	1285
in division (A) or (B) of this section if they. Board or	1286
commission members who are appointed for a fixed term and who are	1287
compensated on a per meeting basis, or paid only for expenses, or	1288
receive a combination of per diem payments and expenses shall pay	1289
the entire amount of the premiums, costs, or charges for that	1290
coverage.	1291

Sec. 133.20.  (A) This section applies to bonds that are	1292
general obligation Chapter 133. securities. If the bonds are	1293
payable as to principal by provision for annual installments, the	1294
period of limitations on their last maturity, referred to as their	1295
maximum maturity, shall be measured from a date twelve months	1296
prior to the first date on which provision for payment of	1297
principal is made. If the bonds are payable as to principal by	1298
provision for semiannual installments, the period of limitations	1299
on their last maturity shall be measured from a date six months	1300
prior to the first date on which provision for payment of	1301
principal is made.	1302

(B) Bonds issued for the following permanent improvements or	1303
for permanent improvements for the following purposes shall have	1304
maximum maturities not exceeding the number of years stated:	1305

(1) Fifty years:

1306

(a) The clearance and preparation of real property for	1307
redevelopment as an urban redevelopment project;	1308

(b) Acquiring, constructing, widening, relocating,	1309
enlarging, extending, and improving a publicly owned railroad or	1310
line of railway or a light or heavy rail rapid transit system,	1311
including related bridges, overpasses, underpasses, and tunnels,	1312
but not including rolling stock or equipment;	1313

(c) Pursuant to section 307.675 of the Revised Code,	1314
constructing or repairing a bridge using long life expectancy	1315
material for the bridge deck, and purchasing, installing, and	1316
maintaining any performance equipment to monitor the physical	1317
condition of a bridge so constructed or repaired. Additionally,	1318
the average maturity of the bonds shall not exceed the expected	1319
useful life of the bridge deck as determined by the county	1320
engineer under that section.	1321

(2) Forty years:

1322

(a) General waterworks or water system permanent	1323
improvements, including buildings, water mains, or other	1324
structures and facilities in connection therewith;	1325

(b) Sewers or sewage treatment or disposal works or	1326
facilities, including fireproof buildings or other structures in	1327
connection therewith;	1328

(c) Storm water drainage, surface water, and flood	1329
prevention facilities.	1330

(3) Thirty-five years: sports facilities.

1331

(4) Thirty years:

1332

(a) Municipal recreation, excluding recreational equipment;

1333

(b) Urban redevelopment projects;

1334

(c) Acquisition of real property;

1335

(d) Street or alley lighting purposes or relocating overhead	1336
wires, cables, and appurtenant equipment underground.	1337

(5) Twenty years: constructing, reconstructing, widening,	1338
opening, improving, grading, draining, paving, extending, or	1339
changing the line of roads, highways, expressways, freeways,	1340
streets, sidewalks, alleys, or curbs and gutters, and related	1341
bridges, viaducts, overpasses, underpasses, grade crossing	1342
eliminations, service and access highways, and tunnels.	1343

(6) Fifteen years:

1344

(a) Resurfacing roads, highways, streets, or alleys;

1345

(b) Alarm, telegraph, or other communications systems for	1346
police or fire departments or other emergency services;	1347

(c) Passenger buses used for mass transportation;

1348

(d) Energy conservation measures as authorized by section	1349
133.06 of the Revised Code.	1350

(7) Ten years:

1351

(a) Water meters;

1352

(b) Fire department apparatus and equipment;

1353

(c) Road rollers and other road construction and servicing	1354
vehicles;	1355

(d) Furniture, equipment, and furnishings;

1356

(e) Landscape planting and other site improvements;

1357

(f) Playground, athletic, and recreational equipment and	1358
apparatus;	1359

(g) Energy conservation measures as authorized by section	1360
307.041, 505.264, or 717.02 of the Revised Code.	1361

(8) Five years: New motor vehicles other than those	1362
described in any other division of this section and those for	1363
which provision is made in other provisions of the Revised Code.	1364

(C) Bonds issued for any permanent improvements not within	1365
the categories set forth in division (B) of this section shall	1366
have maximum maturities of from five to thirty years as the fiscal	1367
officer estimates is the estimated life or period of usefulness of	1368
those permanent improvements. Bonds issued under section 133.51	1369
of the Revised Code for purposes other than permanent improvements	1370
shall have the maturities, not to exceed forty years, that the	1371
taxing authority shall specify.	1372

(D) Securities issued under section 505.265 or 717.07 of the	1373
Revised Code shall mature not later than December 31, 2035.	1374

(E) A securities issue for one purpose may include permanent	1375
improvements within two or more categories under divisions (B) and	1376
(C) of this section. The maximum maturity of such a bond issue	1377
shall not exceed the average number of years of life or period of	1378
usefulness of the permanent improvements as measured by the	1379
weighted average of the amounts expended or proposed to be	1380
expended for the categories of permanent improvements.	1381

Sec. 145.01.  As used in this chapter:

1382

(A) "Public employee" means:

1383

(1) Any person holding an office, not elective, under the	1384
state or any county, township, municipal corporation, park	1385
district, conservancy district, sanitary district, health	1386
district, metropolitan housing authority, state retirement board,	1387
Ohio historical society, public library, county law library, union	1388
cemetery, joint hospital, institutional commissary, state	1389
university, or board, bureau, commission, council, committee,	1390
authority, or administrative body as the same are, or have been,	1391
created by action of the general assembly or by the legislative	1392
authority of any of the units of local government named in	1393
division (A)(1) of this section, or employed and paid in whole or	1394
in part by the state or any of the authorities named in division	1395
(A)(1) of this section in any capacity not covered by section	1396
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	1397

(2) A person who is a member of the public employees	1398
retirement system and who continues to perform the same or similar	1399
duties under the direction of a contractor who has contracted to	1400
take over what before the date of the contract was a publicly	1401
operated function. The governmental unit with which the contract	1402
has been made shall be deemed the employer for the purposes of	1403
administering this chapter.	1404

(3) Any person who is an employee of a public employer,	1405
notwithstanding that the person's compensation for that employment	1406
is derived from funds of a person or entity other than the	1407
employer. Credit for such service shall be included as total	1408
service credit, provided that the employee makes the payments	1409
required by this chapter, and the employer makes the payments	1410
required by sections 145.48 and 145.51 of the Revised Code.	1411

(4) A person who elects in accordance with section 145.015	1412
of the Revised Code to remain a contributing member of the public	1413
employees retirement system.	1414

In all cases of doubt, the public employees retirement board	1415
shall determine whether any person is a public employee, and its	1416
decision is final.	1417

(B) "Member" means any public employee, other than a public	1418
employee excluded or exempted from membership in the retirement	1419
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	1420
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	1421
retirant who becomes a member under division (C) of section 145.38	1422
of the Revised Code. "Member" also includes a disability benefit	1423
recipient.	1424

(C) "Head of the department" means the elective or	1425
appointive head of the several executive, judicial, and	1426
administrative departments, institutions, boards, and commissions	1427
of the state and local government as the same are created and	1428
defined by the laws of this state or, in case of a charter	1429
government, by that charter.	1430

(D) "Employer" or "public employer" means the state or any	1431
county, township, municipal corporation, park district,	1432
conservancy district, sanitary district, health district,	1433
metropolitan housing authority, state retirement board, Ohio	1434
historical society, public library, county law library, union	1435
cemetery, joint hospital, institutional commissary, state medical	1436
college, state university, or board, bureau, commission, council,	1437
committee, authority, or administrative body as the same are, or	1438
have been, created by action of the general assembly or by the	1439
legislative authority of any of the units of local government	1440
named in this division not covered by section 742.01, 3307.01,	1441
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	1442
means the employer of any public employee.	1443

(E) "Prior service" means all service as a public employee	1444
rendered before January 1, 1935, and all service as an employee of	1445
any employer who comes within the state teachers retirement system	1446
or of the school employees retirement system or of any other	1447
retirement system established under the laws of this state	1448
rendered prior to January 1, 1935, provided that if the employee	1449
claiming the service was employed in any capacity covered by that	1450
other system after that other system was established, credit for	1451
the service may be allowed by the public employees retirement	1452
system only when the employee has made payment, to be computed on	1453
the salary earned from the date of appointment to the date	1454
membership was established in the public employees retirement	1455
system, at the rate in effect at the time of payment, and the	1456
employer has made payment of the corresponding full liability as	1457
provided by section 145.44 of the Revised Code. "Prior service"	1458
also means all service credited for active duty with the armed	1459
forces of the United States as provided in section 145.30 of the	1460
Revised Code.	1461

If an employee who has been granted prior service credit by	1462
the public employees retirement system for service rendered prior	1463
to January 1, 1935, as an employee of a board of education	1464
establishes, before retirement, one year or more of contributing	1465
service in the state teachers retirement system or school	1466
employees retirement system, then the prior service ceases to be	1467
the liability of this system.	1468

If the board determines that a position of any member in any	1469
calendar year prior to January 1, 1935, was a part-time position,	1470
the board shall determine what fractional part of a year's credit	1471
shall be allowed by the following formula:	1472

(1) When the member has been either elected or appointed to	1473
an office the term of which was two or more years and for which an	1474
annual salary is established, the fractional part of the year's	1475
credit shall be computed as follows:	1476

First, when the member's annual salary is one thousand	1477
dollars or less, the service credit for each such calendar year	1478
shall be forty per cent of a year.	1479

Second, for each full one hundred dollars of annual salary	1480
above one thousand dollars, the member's service credit for each	1481
such calendar year shall be increased by two and one-half per	1482
cent.	1483

(2) When the member is paid on a per diem basis, the service	1484
credit for any single year of the service shall be determined by	1485
using the number of days of service for which the compensation was	1486
received in any such year as a numerator and using two hundred	1487
fifty days as a denominator.	1488

(3) When the member is paid on an hourly basis, the service	1489
credit for any single year of the service shall be determined by	1490
using the number of hours of service for which the compensation	1491
was received in any such year as a numerator and using two	1492
thousand hours as a denominator.	1493

(F) "Contributor" means any person who has an account in the	1494
employees' savings fund created by section 145.23 of the Revised	1495
Code. When used in the sections listed in division (B) of section	1496
145.82 of the Revised Code, "contributor" includes any person	1497
participating in a PERS defined contribution plan.	1498

(G) "Beneficiary" or "beneficiaries" means the estate or a	1499
person or persons who, as the result of the death of a member,	1500
contributor, or retirant, qualify for or are receiving some right	1501
or benefit under this chapter.	1502

(H)(1) "Total service credit," except as provided in section	1503
145.37 of the Revised Code, means all service credited to a member	1504
of the retirement system since last becoming a member, including	1505
restored service credit as provided by section 145.31 of the	1506
Revised Code; credit purchased under sections 145.293 and 145.299	1507
of the Revised Code; all the member's prior service credit; all	1508
the member's military service credit computed as provided in this	1509
chapter; all service credit established pursuant to section	1510
145.297 of the Revised Code; and any other service credited under	1511
this chapter. In addition, "total service credit" includes any	1512
period, not in excess of three years, during which a member was	1513
out of service and receiving benefits under Chapters 4121. and	1514
4123. of the Revised Code. For the exclusive purpose of	1515
satisfying the service credit requirement and of determining	1516
eligibility for benefits under sections 145.32, 145.33, 145.331,	1517
145.35, 145.36, and 145.361 of the Revised Code, "five or more	1518
years of total service credit" means sixty or more calendar months	1519
of contributing service in this system.	1520

(2) "One and one-half years of contributing service credit,"	1521
as used in division (B) of section 145.45 of the Revised Code,	1522
also means eighteen or more calendar months of employment by a	1523
municipal corporation that formerly operated its own retirement	1524
plan for its employees or a part of its employees, provided that	1525
all employees of that municipal retirement plan who have eighteen	1526
or more months of such employment, upon establishing membership in	1527
the public employees retirement system, shall make a payment of	1528
the contributions they would have paid had they been members of	1529
this system for the eighteen months of employment preceding the	1530
date membership was established. When that payment has been made	1531
by all such employee members, a corresponding payment shall be	1532
paid into the employers' accumulation fund by that municipal	1533
corporation as the employer of the employees.	1534

(3) Where a member also is a member of the state teachers	1535
retirement system or the school employees retirement system, or	1536
both, except in cases of retirement on a combined basis pursuant	1537
to section 145.37 of the Revised Code or as provided in section	1538
145.383 of the Revised Code, service credit for any period shall	1539
be credited on the basis of the ratio that contributions to the	1540
public employees retirement system bear to total contributions in	1541
all state retirement systems.	1542

(4) Not more than one year of credit may be given for any	1543
period of twelve months.	1544

(5) "Ohio service credit" means credit for service that was	1545
rendered to the state or any of its political subdivisions or any	1546
employer.	1547

(I) "Regular interest" means interest at any rates for the	1548
respective funds and accounts as the public employees retirement	1549
board may determine from time to time.	1550

(J) "Accumulated contributions" means the sum of all amounts	1551
credited to a contributor's individual account in the employees'	1552
savings fund together with any interest credited to the	1553
contributor's account under section 145.471 or 145.472 of the	1554
Revised Code.	1555

(K)(1) "Final average salary" means the quotient obtained by	1556
dividing by three the sum of the three full calendar years of	1557
contributing service in which the member's earnable salary was	1558
highest, except that if the member has a partial year of	1559
contributing service in the year the member's employment	1560
terminates and the member's earnable salary for the partial year	1561
is higher than for any comparable period in the three years, the	1562
member's earnable salary for the partial year shall be substituted	1563
for the member's earnable salary for the comparable period during	1564
the three years in which the member's earnable salary was lowest.	1565

(2) If a member has less than three years of contributing	1566
service, the member's final average salary shall be the member's	1567
total earnable salary divided by the total number of years,	1568
including any fraction of a year, of the member's contributing	1569
service.	1570

(3) For the purpose of calculating benefits payable to a	1571
member qualifying for service credit under division (Z) of this	1572
section, "final average salary" means the total earnable salary on	1573
which contributions were made divided by the total number of years	1574
during which contributions were made, including any fraction of a	1575
year. If contributions were made for less than twelve months,	1576
"final average salary" means the member's total earnable salary.	1577

(L) "Annuity" means payments for life derived from	1578
contributions made by a contributor and paid from the annuity and	1579
pension reserve fund as provided in this chapter. All annuities	1580
shall be paid in twelve equal monthly installments.	1581

(M) "Annuity reserve" means the present value, computed upon	1582
the basis of the mortality and other tables adopted by the board,	1583
of all payments to be made on account of any annuity, or benefit	1584
in lieu of any annuity, granted to a retirant as provided in this	1585
chapter.	1586

(N)(1) "Disability retirement" means retirement as provided	1587
in section 145.36 of the Revised Code.	1588

(2) "Disability allowance" means an allowance paid on	1589
account of disability under section 145.361 of the Revised Code.	1590

(3) "Disability benefit" means a benefit paid as disability	1591
retirement under section 145.36 of the Revised Code, as a	1592
disability allowance under section 145.361 of the Revised Code, or	1593
as a disability benefit under section 145.37 of the Revised Code.	1594

(4) "Disability benefit recipient" means a member who is	1595
receiving a disability benefit.	1596

(O) "Age and service retirement" means retirement as	1597
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and	1598
145.46 of the Revised Code.	1599

(P) "Pensions" means annual payments for life derived from	1600
contributions made by the employer that at the time of retirement	1601
are credited into the annuity and pension reserve fund from the	1602
employers' accumulation fund and paid from the annuity and pension	1603
reserve fund as provided in this chapter. All pensions shall be	1604
paid in twelve equal monthly installments.	1605

(Q) "Retirement allowance" means the pension plus that	1606
portion of the benefit derived from contributions made by the	1607
member.	1608

(R)(1) Except as otherwise provided in division (R) of this	1609
section, "earnable salary" means all salary, wages, and other	1610
earnings paid to a contributor by reason of employment in a	1611
position covered by the retirement system. The salary, wages, and	1612
other earnings shall be determined prior to determination of the	1613
amount required to be contributed to the employees' savings fund	1614
under section 145.47 of the Revised Code and without regard to	1615
whether any of the salary, wages, or other earnings are treated as	1616
deferred income for federal income tax purposes. "Earnable	1617
salary" includes the following:	1618

(a) Payments made by the employer in lieu of salary, wages,	1619
or other earnings for sick leave, personal leave, or vacation used	1620
by the contributor;	1621

(b) Payments made by the employer for the conversion of sick	1622
leave, personal leave, and vacation leave accrued, but not used if	1623
the payment is made during the year in which the leave is accrued,	1624
except that payments made pursuant to section 124.383 or 124.386	1625
of the Revised Code are not earnable salary;	1626

(c) Allowances paid by the employer for full maintenance,	1627
consisting of housing, laundry, and meals, as certified to the	1628
retirement board by the employer or the head of the department	1629
that employs the contributor;	1630

(d) Fees and commissions paid under section 507.09 of the	1631
Revised Code;	1632

(e) Payments that are made under a disability leave program	1633
sponsored by the employer and for which the employer is required	1634
by section 145.296 of the Revised Code to make periodic employer	1635
and employee contributions;	1636

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	1637
this section.	1638

(2) "Earnable salary" does not include any of the following:

1639

(a) Fees and commissions, other than those paid under	1640
section 507.09 of the Revised Code, paid as sole compensation for	1641
personal services and fees and commissions for special services	1642
over and above services for which the contributor receives a	1643
salary;	1644

(b) Amounts paid by the employer to provide life insurance,	1645
sickness, accident, endowment, health, medical, hospital, dental,	1646
or surgical coverage, or other insurance for the contributor or	1647
the contributor's family, or amounts paid by the employer to the	1648
contributor in lieu of providing the insurance;	1649

(c) Incidental benefits, including lodging, food, laundry,	1650
parking, or services furnished by the employer, or use of the	1651
employer's property or equipment, or amounts paid by the employer	1652
to the contributor in lieu of providing the incidental benefits;	1653

(d) Reimbursement for job-related expenses authorized by the	1654
employer, including moving and travel expenses and expenses	1655
related to professional development;	1656

(e) Payments for accrued but unused sick leave, personal	1657
leave, or vacation that are made at any time other than in the	1658
year in which the sick leave, personal leave, or vacation was	1659
accrued;	1660

(f) Payments made to or on behalf of a contributor that are	1661
in excess of the annual compensation that may be taken into	1662
account by the retirement system under division (a)(17) of section	1663
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1664
U.S.C.A. 401(a)(17), as amended;	1665

(g) Payments made under division (B), (C), or (E) of section	1666
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	1667
No. 3 of the 119th general assembly, Section 3 of Amended	1668
Substitute Senate Bill No. 164 of the 124th general assembly, or	1669
Amended Substitute House Bill No. 405 of the 124th general	1670
assembly;	1671

(h) Anything of value received by the contributor that is	1672
based on or attributable to retirement or an agreement to retire,	1673
except that payments made on or before January 1, 1989, that are	1674
based on or attributable to an agreement to retire shall be	1675
included in earnable salary if both of the following apply:	1676

(i) The payments are made in accordance with contract	1677
provisions that were in effect prior to January 1, 1986;	1678

(ii) The employer pays the retirement system an amount	1679
specified by the retirement board equal to the additional	1680
liability resulting from the payments.	1681

(3) The retirement board shall determine by rule whether any	1682
compensation not enumerated in division (R) of this section is	1683
earnable salary, and its decision shall be final.	1684

(S) "Pension reserve" means the present value, computed upon	1685
the basis of the mortality and other tables adopted by the board,	1686
of all payments to be made on account of any retirement allowance	1687
or benefit in lieu of any retirement allowance, granted to a	1688
member or beneficiary under this chapter.	1689

(T)(1) "Contributing service" means all service credited to	1690
a member of the system since January 1, 1935, for which	1691
contributions are made as required by sections 145.47, 145.48, and	1692
145.483 of the Revised Code. In any year subsequent to 1934,	1693
credit for any service shall be allowed by the following formula:	1694

(a) For each month for which the member's earnable salary is	1695
two hundred fifty dollars or more, allow one month's credit.	1696

(b) For each month for which the member's earnable salary is	1697
less than two hundred fifty dollars, allow a fraction of a month's	1698
credit. The numerator of this fraction shall be the earnable	1699
salary during the month, and the denominator shall be two hundred	1700
fifty dollars, except that if the member's annual earnable salary	1701
is less than six hundred dollars, the member's credit shall not be	1702
reduced below twenty per cent of a year for a calendar year of	1703
employment during which the member worked each month. Division	1704
(T)(1)(b) of this section shall not reduce any credit earned	1705
before January 1, 1985.	1706

(2) Notwithstanding division (T)(1) of this section, an	1707
elected official who prior to January 1, 1980, was granted a full	1708
year of credit for each year of service as an elected official	1709
shall be considered to have earned a full year of credit for each	1710
year of service regardless of whether the service was full-time or	1711
part-time. The public employees retirement board has no authority	1712
to reduce the credit.	1713

(U) "State retirement board" means the public employees	1714
retirement board, the school employees retirement board, or the	1715
state teachers retirement board.	1716

(V) "Retirant" means any former member who retires and is	1717
receiving a monthly allowance as provided in sections 145.32,	1718
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	1719

(W) "Employer contribution" means the amount paid by an	1720
employer as determined under section 145.48 of the Revised Code.	1721

(X) "Public service terminates" means the last day for which	1722
a public employee is compensated for services performed for an	1723
employer or the date of the employee's death, whichever occurs	1724
first.	1725

(Y) When a member has been elected or appointed to an	1726
office, the term of which is two or more years, for which an	1727
annual salary is established, and in the event that the salary of	1728
the office is increased and the member is denied the additional	1729
salary by reason of any constitutional provision prohibiting an	1730
increase in salary during a term of office, the member may elect	1731
to have the amount of the member's contributions calculated upon	1732
the basis of the increased salary for the office. At the member's	1733
request, the board shall compute the total additional amount the	1734
member would have contributed, or the amount by which each of the	1735
member's contributions would have increased, had the member	1736
received the increased salary for the office the member holds. If	1737
the member elects to have the amount by which the member's	1738
contribution would have increased withheld from the member's	1739
salary, the member shall notify the employer, and the employer	1740
shall make the withholding and transmit it to the retirement	1741
system. A member who has not elected to have that amount withheld	1742
may elect at any time to make a payment to the retirement system	1743
equal to the additional amount the member's contribution would	1744
have increased, plus interest on that contribution, compounded	1745
annually at a rate established by the board and computed from the	1746
date on which the last contribution would have been withheld from	1747
the member's salary to the date of payment. A member may make a	1748
payment for part of the period for which the increased	1749
contribution was not withheld, in which case the interest shall be	1750
computed from the date the last contribution would have been	1751
withheld for the period for which the payment is made. Upon the	1752
payment of the increased contributions as provided in this	1753
division, the increased annual salary as provided by law for the	1754
office for the period for which the member paid increased	1755
contributions thereon shall be used in determining the member's	1756
earnable salary for the purpose of computing the member's final	1757
average salary.	1758

(Z) "Five years of service credit," for the exclusive	1759
purpose of satisfying the service credit requirements and of	1760
determining eligibility for benefits under section 145.33 of the	1761
Revised Code, means employment covered under this chapter or under	1762
a former retirement plan operated, recognized, or endorsed by the	1763
employer prior to coverage under this chapter or under a	1764
combination of the coverage.	1765

(AA) "Deputy sheriff" means any person who is commissioned	1766
and employed as a full-time peace officer by the sheriff of any	1767
county, and has been so employed since on or before December 31,	1768
1965, and whose primary duties are to preserve the peace, to	1769
protect life and property, and to enforce the laws of this state;	1770
any person who is or has been commissioned and employed as a peace	1771
officer by the sheriff of any county since January 1, 1966, and	1772
who has received a certificate attesting to the person's	1773
satisfactory completion of the peace officer training school as	1774
required by section 109.77 of the Revised Code and whose primary	1775
duties are to preserve the peace, protect life and property, and	1776
enforce the laws of this state; or any person deputized by the	1777
sheriff of any county and employed pursuant to section 2301.12 of	1778
the Revised Code as a criminal bailiff or court constable who has	1779
received a certificate attesting to the person's satisfactory	1780
completion of the peace officer training school as required by	1781
section 109.77 of the Revised Code and whose primary duties are to	1782
preserve the peace, protect life and property, and enforce the	1783
laws of this state.	1784

(BB) "Township constable or police officer in a township	1785
police department or district" means any person who is	1786
commissioned and employed as a full-time peace officer pursuant to	1787
Chapter 505. or 509. of the Revised Code, who has received a	1788
certificate attesting to the person's satisfactory completion of	1789
the peace officer training school as required by section 109.77 of	1790
the Revised Code, and whose primary duties are to preserve the	1791
peace, protect life and property, and enforce the laws of this	1792
state.	1793

(CC) "Drug agent" means any person who is either of the	1794
following:	1795

(1) Employed full-time as a narcotics agent by a county	1796
narcotics agency created pursuant to section 307.15 of the Revised	1797
Code and has received a certificate attesting to the satisfactory	1798
completion of the peace officer training school as required by	1799
section 109.77 of the Revised Code;	1800

(2) Employed full-time as an undercover drug agent as	1801
defined in section 109.79 of the Revised Code and is in compliance	1802
with section 109.77 of the Revised Code.	1803

(DD) "Department of public safety enforcement agent" means a	1804
full-time employee of the department of public safety who is	1805
designated under section 5502.14 of the Revised Code as an	1806
enforcement agent and who is in compliance with section 109.77 of	1807
the Revised Code.	1808

(EE) "Natural resources law enforcement staff officer" means	1809
a full-time employee of the department of natural resources who is	1810
designated a natural resources law enforcement staff officer under	1811
section 1501.013 of the Revised Code and is in compliance with	1812
section 109.77 of the Revised Code.	1813

(FF) "Park officer" means a full-time employee of the	1814
department of natural resources who is designated a park officer	1815
under section 1541.10 of the Revised Code and is in compliance	1816
with section 109.77 of the Revised Code.	1817

(GG) "Forest officer" means a full-time employee of the	1818
department of natural resources who is designated a forest officer	1819
under section 1503.29 of the Revised Code and is in compliance	1820
with section 109.77 of the Revised Code.	1821

(HH) "Preserve officer" means a full-time employee of the	1822
department of natural resources who is designated a preserve	1823
officer under section 1517.10 of the Revised Code and is in	1824
compliance with section 109.77 of the Revised Code.	1825

(II) "Wildlife officer" means a full-time employee of the	1826
department of natural resources who is designated a wildlife	1827
officer under section 1531.13 of the Revised Code and is in	1828
compliance with section 109.77 of the Revised Code.	1829

(JJ) "State watercraft officer" means a full-time employee	1830
of the department of natural resources who is designated a state	1831
watercraft officer under section 1547.521 of the Revised Code and	1832
is in compliance with section 109.77 of the Revised Code.	1833

(KK) "Park district police officer" means a full-time	1834
employee of a park district who is designated pursuant to section	1835
511.232 or 1545.13 of the Revised Code and is in compliance with	1836
section 109.77 of the Revised Code.	1837

(LL) "Conservancy district officer" means a full-time	1838
employee of a conservancy district who is designated pursuant to	1839
section 6101.75 of the Revised Code and is in compliance with	1840
section 109.77 of the Revised Code.	1841

(MM) "Municipal police officer" means a member of the	1842
organized police department of a municipal corporation who is	1843
employed full-time, is in compliance with section 109.77 of the	1844
Revised Code, and is not a member of the Ohio police and fire	1845
pension fund.	1846

(NN) "Ohio veterans'Veterans' home police officer" means	1847
any person who is employed at the Ohioa veterans' home as a	1848
police officer pursuant to section 5907.02 of the Revised Code and	1849
is in compliance with section 109.77 of the Revised Code.	1850

(OO) "Special police officer for a mental health	1851
institution" means any person who is designated as such pursuant	1852
to section 5119.14 of the Revised Code and is in compliance with	1853
section 109.77 of the Revised Code.	1854

(PP) "Special police officer for an institution for the	1855
mentally retarded and developmentally disabled" means any person	1856
who is designated as such pursuant to section 5123.13 of the	1857
Revised Code and is in compliance with section 109.77 of the	1858
Revised Code.	1859

(QQ) "State university law enforcement officer" means any	1860
person who is employed full-time as a state university law	1861
enforcement officer pursuant to section 3345.04 of the Revised	1862
Code and who is in compliance with section 109.77 of the Revised	1863
Code.	1864

(RR) "House sergeant at arms" means any person appointed by	1865
the speaker of the house of representatives under division (B)(1)	1866
of section 101.311 of the Revised Code who has arrest authority	1867
under division (E)(1) of that section.	1868

(SS) "Assistant house sergeant at arms" means any person	1869
appointed by the house sergeant at arms under division (C)(1) of	1870
section 101.311 of the Revised Code.	1871

(TT) "Regional transit authority police officer" means a	1872
person who is employed full time as a regional transit authority	1873
police officer under division (Y) of section 306.35 of the Revised	1874
Code and is in compliance with section 109.77 of the Revised Code.	1875

(UU) "State highway patrol police officer" means a special	1876
police officer employed full time and designated by the	1877
superintendent of the state highway patrol pursuant to section	1878
5503.09 of the Revised Code or a person serving full time as a	1879
special police officer pursuant to that section on a permanent	1880
basis on October 21, 1997, who is in compliance with section	1881
109.77 of the Revised Code.	1882

(VV) Notwithstanding section 2901.01 of the Revised Code,	1883
"PERS law enforcement officer" means a sheriff, deputy sheriff,	1884
township constable or police officer in a township police	1885
department or district, drug agent, department of public safety	1886
enforcement agent, natural resources law enforcement staff	1887
officer, park officer, forest officer, preserve officer, wildlife	1888
officer, state watercraft officer, park district police officer,	1889
conservancy district officer, Ohio veterans' home police officer,	1890
special police officer for a mental health institution, special	1891
police officer for an institution for the mentally retarded and	1892
developmentally disabled, state university law enforcement	1893
officer, municipal police officer, house sergeant at arms,	1894
assistant house sergeant at arms, regional transit authority	1895
police officer, or state highway patrol police officer.	1896

(WW) "Hamilton county municipal court bailiff" means a person	1897
appointed by the clerk of courts of the Hamilton county municipal	1898
court under division (A)(3) of section 1901.32 of the Revised Code	1899
who is employed full time as a bailiff or deputy bailiff, who has	1900
received a certificate attesting to the person's satisfactory	1901
completion of the peace officer basic training described in	1902
division (D)(1) of section 109.77 of the Revised Code, and whose	1903
primary duties are to preserve the peace, to protect life and	1904
property, and to enforce the laws of this state.	1905

(XX) "Fiduciary" means a person who does any of the	1906
following:	1907

(1) Exercises any discretionary authority or control with	1908
respect to the management of the system or with respect to the	1909
management or disposition of its assets;	1910

(2) Renders investment advice for a fee, direct or indirect,	1911
with respect to money or property of the system;	1912

(3) Has any discretionary authority or responsibility in the	1913
administration of the system.	1914

(YY) "Actuary" means an individual who satisfies all of the	1915
following requirements:	1916

(1) Is a member of the American academy of actuaries;

1917

(2) Is an associate or fellow of the society of actuaries;

1918

(3) Has a minimum of five years' experience in providing	1919
actuarial services to public retirement plans.	1920

(ZZ) "PERS defined benefit plan" means the plan described in	1921
sections 145.201 to 145.79 of the Revised Code.	1922

(AAA) "PERS defined contribution plans" means the plan or	1923
plans established under section 145.81 of the Revised Code.	1924

Sec. 145.012.  (A) "Public employee," as defined in division	1925
(A) of section 145.01 of the Revised Code, does not include any	1926
person:	1927

(1) Who is employed by a private, temporary-help service and	1928
performs services under the direction of a public employer or is	1929
employed on a contractual basis as an independent contractor under	1930
a personal service contract with a public employer;	1931

(2) Who is an emergency employee serving on a temporary	1932
basis in case of fire, snow, earthquake, flood, or other similar	1933
emergency;	1934

(3) Who is employed in a program established pursuant to the	1935
"Job Training Partnership Act," 96 Stat. 1322 (1982), 29 U.S.C.A.	1936
1501;	1937

(4) Who is an appointed member of either the motor vehicle	1938
salvage dealers board or the motor vehicle dealer's board whose	1939
rate and method of payment are determined pursuant to division (J)	1940
of section 124.15 of the Revised Code;	1941

(5) Who is employed as an election worker and paid less than	1942
five hundred dollars per calendar year for that service;	1943

(6) Who is employed as a firefighter in a position requiring	1944
satisfactory completion of a firefighter training course approved	1945
under former section 3303.07 or section 4765.55 of the Revised	1946
Code or conducted under section 3737.33 of the Revised Code except	1947
for the following:	1948

(a) Any firefighter who has elected under section 145.013 of	1949
the Revised Code to remain a contributing member of the public	1950
employees retirement system;	1951

(b) Any firefighter who was eligible to transfer from the	1952
public employees retirement system to the Ohio police and fire	1953
pension fund under section 742.51 or 742.515 of the Revised Code	1954
and did not elect to transfer;	1955

(c) Any firefighter who has elected under section 742.516 of	1956
the Revised Code to transfer from the Ohio police and fire pension	1957
fund to the public employees retirement system.	1958

(7) Who is a member of the board of health of a city or	1959
general health district, which pursuant to sections 3709.051 and	1960
3709.07 of the Revised Code includes a combined health district,	1961
and whose compensation for attendance at meetings of the board is	1962
set forth in division (B) of section 3709.02 or division (B) of	1963
section 3709.05 of the Revised Code, as appropriate;	1964

(8) Who participates in an alternative retirement plan	1965
established under Chapter 3305. of the Revised Code;	1966

(9) Who is a member of the board of directors of a sanitary	1967
district established under Chapter 6115. of the Revised Code.	1968

(B) No inmate of a correctional institution operated by the	1969
department of rehabilitation and correction, no patient in a	1970
hospital for the mentally ill or criminally insane operated by the	1971
department of mental health, no resident in an institution for the	1972
mentally retarded operated by the department of mental retardation	1973
and developmental disabilities, no resident admitted as a patient	1974
of the Ohioa veterans' home at Sanduskyoperated under Chapter	1975
5907. of the Revised Code, and no resident of a county home shall	1976
be considered as a public employee for the purpose of establishing	1977
membership or calculating service credit or benefits under this	1978
chapter. Nothing in this division shall be construed to affect	1979
any service credit attained by any person who was a public	1980
employee before becoming an inmate, patient, or resident at any	1981
institution listed in this division, or the payment of any benefit	1982
for which such a person or such a person's beneficiaries otherwise	1983
would be eligible.	1984

Sec. 145.33.  (A) Except as provided in division (B) or (C)	1985
of this section, a member with at least five years of total	1986
service credit who has attained age sixty, or who has thirty years	1987
of total Ohio service credit, may apply for age and service	1988
retirement, which shall consist of:	1989

(1) An annuity having a reserve equal to the amount of the	1990
member's accumulated contributions at that time;	1991

(2) A pension equal to the annuity provided by division	1992
(A)(1) of this section;	1993

(3) An additional pension, if the member can qualify for	1994
prior service, equal to forty dollars multiplied by the number of	1995
years, and fraction thereof, of such prior and military service	1996
credit;	1997

(4) A basic annual pension equal to one hundred eighty	1998
dollars if the member has ten or more years of total service	1999
credit as of October 1, 1956, except that the basic annual pension	2000
shall not exceed the sum of the annual benefits provided by	2001
divisions (A)(1), (2), and (3) of this section.	2002

(5) When a member retires on age and service retirement, the	2003
member's total annual single lifetime allowance, including the	2004
allowances provided in divisions (A)(1), (2), (3), and (4) of this	2005
section, shall be not less than a base amount adjusted in	2006
accordance with division (A)(5) of this section and determined by	2007
multiplying the member's total service credit by the greater of	2008
the following:	2009

(a) Eighty-six dollars;

2010

(b) Two and two-tenths per cent of the member's final	2011
average salary for each of the first thirty years of service plus	2012
two and one-half per cent of the member's final average salary for	2013
each subsequent year of service.	2014

The allowance shall be adjusted by the factors of attained	2015
age or years of service to provide the greater amount as	2016
determined by the following schedule:	2017

Members shall vest the right to a benefit in accordance with	2031
the following schedule, based on the member's attained age by	2032
September 1, 1976:	2033

(6) The total annual single lifetime allowance that a member	2042
shall receive under division (A)(5) of this section shall not	2043
exceed the lesser of one hundred per cent of the member's final	2044
average salary or the limit established by section 415 of the	2045
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	2046
as amended.	2047

(B)(1) For the purposes of divisions (B) to (H)(G) of this	2048
section, "total service credit as a PERS law enforcement officer"	2049
and "total service credit as a Hamilton county municipal court	2050
bailiff" include credit for military service to the extent	2051
permitted by division (F)(E)(2) of this section and credit for	2052
service as a police officer or state highway patrol trooper to the	2053
extent permitted by divisions (F)(E)(3) and (4) of this section.	2054

(2) A member who meets the conditions in division (B)(2)(a),	2055
(b), (c), or (d) of this section may apply for an age and service	2056
retirement benefit under this division:	2057

(a) The member has attained age forty-eight and has at least	2058
twenty-five years of total service credit as a PERS law	2059
enforcement officer whose primary duties were to preserve the	2060
peace, protect life and property, and enforce the laws in the	2061
member's jurisdiction;	2062

(b) The member has attained age fifty-two, and has at least	2063
twenty-five years of total service credit as a PERS law	2064
enforcement officer, but the member's primary duties were other	2065
than to preserve the peace, protect life and property, and enforce	2066
the laws in the member's jurisdiction;	2067

(c) The member has attained age fifty-two and has at least	2068
twenty-five years of total service as a Hamilton county municipal	2069
court bailiff;	2070

(d) The member has attained age sixty-two and has at least	2071
fifteen years of total service credit as either of the following:	2072

(i) A PERS law enforcement officer;

2073

(ii) A Hamilton county municipal court bailiff.

2074

(3) A benefit paid under division (B)(2) of this section	2075
shall consist of an annual single lifetime allowance equal to the	2076
sum of two and one-half per cent of the member's final average	2077
salary multiplied by the first twenty-five years of the member's	2078
total service plus two and one-tenth per cent of the member's	2079
final average salary multiplied by the number of years of the	2080
member's total service credit in excess of twenty-five years.	2081

(4) A member with at least fifteen years of total service	2082
credit as a PERS law enforcement officer or Hamilton county	2083
municipal court bailiff who voluntarily resigns or is discharged	2084
for any reason except death, dishonesty, cowardice, intemperate	2085
habits, or conviction of a felony may apply for an age and service	2086
retirement benefit, which shall consist of an annual single	2087
lifetime allowance equal to one and one-half per cent of the	2088
member's final average salary multiplied by the number of years of	2089
the member's total service credit. The allowance shall commence	2090
on the first day of the calendar month following the month in	2091
which the application is filed with the public employees	2092
retirement board on or after the attainment by the applicant of	2093
age fifty-two.	2094

(C)(1) A member with at least twenty-five years of total	2095
service credit who would be eligible to retire under division	2096
(B)(2)(b) or (c) of this section had the member attained age	2097
fifty-two and who voluntarily resigns or is discharged for any	2098
reason except death, dishonesty, cowardice, intemperate habits, or	2099
conviction of a felony, on or after the date of attaining	2100
forty-eight years of age, but before the date of attaining	2101
fifty-two years of age, may elect to receive a reduced benefit as	2102
determined by the following schedule:	2103

(2) If a member elects to receive a reduced benefit after	2113
attaining age forty-eight the reduced benefit is payable from the	2114
later of the date of the member's most recent birthday or the date	2115
the member becomes eligible to receive the reduced benefit.	2116

(3) Once a member elects to receive a reduced benefit	2117
determined by the schedule in division (C)(1) of this section and	2118
has received a payment, the member may not reelect to change that	2119
election.	2120

(4) If a member who has resigned or been discharged has left	2121
on deposit the member's accumulated contributions in the	2122
employees' savings fund and has not elected to receive a reduced	2123
benefit determined by the schedule in division (C)(1) of this	2124
section, upon attaining fifty-two years of age, the member shall	2125
be entitled to receive a benefit computed and paid under division	2126
(B)(3) of this section.	2127

(D) A benefit paid under division (B) or (C) of this section	2128
shall not exceed the lesser of ninety per cent of the member's	2129
final average salary or the limit established by section 415 of	2130
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	2131
415, as amended.	2132

(E)(1) A member with service credit as a PERS law	2133
enforcement officer or a Hamilton county municipal court bailiff	2134
and other service credit under this chapter may elect one of the	2135
following:	2136

(a) To have all the member's service credit under this	2137
chapter, including credit for service as a PERS law enforcement	2138
officer or Hamilton county municipal court bailiff, used in	2139
calculating a retirement allowance under division (A) of this	2140
section if the member qualifies for an allowance under that	2141
division;	2142

(b) If the member qualifies for an allowance under division	2143
(B) or (C) of this section, to have the member's service credit	2144
as a PERS law enforcement officer or Hamilton county municipal	2145
court bailiff used in calculating a benefit under the appropriate	2146
division and the member's credit for all service other than PERS	2147
law enforcement service or service as a Hamilton county municipal	2148
court bailiff under this chapter used in calculating a benefit	2149
consisting of a single life annuity having a reserve equal to the	2150
amount of the member's accumulated contributions and an equal	2151
amount of the employer's contributions.	2152

(2) Notwithstanding sections 145.01 and 145.30 of the	2153
Revised Code, no more than four years of military service credit	2154
granted under section 145.30 of the Revised Code and five years of	2155
military service credit purchased under section 145.301 or 145.302	2156
of the Revised Code shall be used in calculating service as a PERS	2157
law enforcement officer or Hamilton county municipal court bailiff	2158
or the total service credit of that person.	2159

(3) Only credit for the member's service as a PERS law	2160
enforcement officer or service credit obtained as a police officer	2161
or state highway patrol trooper shall be used in computing the	2162
benefit of a member who qualifies for a benefit under division	2163
(B)(2)(a), (b), or (d)(ii) or (4) or division (C) of this section	2164
for the following:	2165

(a) Any person who originally is commissioned and employed	2166
as a deputy sheriff by the sheriff of any county, or who	2167
originally is elected sheriff, on or after January 1, 1975;	2168

(b) Any deputy sheriff who originally is employed as a	2169
criminal bailiff or court constable on or after April 16, 1993;	2170

(c) Any person who originally is appointed as a township	2171
constable or police officer in a township police department or	2172
district on or after January 1, 1981;	2173

(d) Any person who originally is employed as a county	2174
narcotics agent on or after September 26, 1984;	2175

(e) Any person who originally is employed as an undercover	2176
drug agent as defined in section 109.79 of the Revised Code,	2177
department of public safety enforcement agent who prior to June	2178
30, 1999, was a liquor control investigator, park officer, forest	2179
officer, wildlife officer, state watercraft officer, park district	2180
police officer, conservancy district officer, Ohio veterans' home	2181
police officer, special police officer for a mental health	2182
institution, special police officer for an institution for the	2183
mentally retarded and developmentally disabled, or municipal	2184
police officer on or after December 15, 1988;	2185

(f) Any person who originally is employed as a state	2186
university law enforcement officer on or after November 6, 1996;	2187

(g) Any person who is originally employed as a state	2188
university law enforcement officer by the university of Akron on	2189
or after September 16, 1998;	2190

(h) Any person who originally is employed as a preserve	2191
officer on or after March 18, 1999;	2192

(i) Any person who originally is employed as a natural	2193
resources law enforcement staff officer on or after March 18,	2194
1999;	2195

(j) Any person who is originally employed as a department of	2196
public safety enforcement agent on or after June 30, 1999;	2197

(k) Any person who is originally employed as a house	2198
sergeant at arms or assistant house sergeant at arms on or after	2199
September 5, 2001;	2200

(l) Any person who is originally appointed as a regional	2201
transit authority police officer or state highway patrol police	2202
officer on or after the effective date of this amendmentFebruary	2203
1, 2002.	2204

(4) Only credit for a member's service as a Hamilton county	2205
municipal court bailiff or service credit obtained as a PERS law	2206
enforcement officer, police officer, or state highway patrol	2207
trooper shall be used in computing the benefit of a member who	2208
qualifies for a benefit under division (B)(2)(c) or (d)(ii) or (4)	2209
or division (C) of this section for any person who originally is	2210
employed as a Hamilton county municipal court bailiff on or after	2211
November 6, 1996.	2212

(G)(F) Retirement allowances determined under this section	2213
shall be paid as provided in section 145.46 of the Revised Code.	2214

(H)(G) For the purposes of this section, service prior to	2215
June 30, 1999, as a food stamp trafficking agent under former	2216
section 5502.14 of the Revised Code shall be considered service as	2217
a law enforcement officer.	2218

Sec. 151.01.  (A) As used in sections 151.01 to 151.09 and	2219
151.40 of the Revised Code and in the applicable bond proceedings	2220
unless otherwise provided:	2221

(1) "Bond proceedings" means the resolutions, orders,	2222
agreements, and credit enhancement facilities, and amendments and	2223
supplements to them, or any one or more or combination of them,	2224
authorizing, awarding, or providing for the terms and conditions	2225
applicable to or providing for the security or liquidity of, the	2226
particular obligations, and the provisions contained in those	2227
obligations.	2228

(2) "Bond service fund" means the respective bond service	2229
fund created by section 151.03, 151.04, 151.05, 151.06, 151.07,	2230
151.08, 151.09, or 151.40 of the Revised Code, and any accounts in	2231
that fund, including all moneys and investments, and earnings from	2232
investments, credited and to be credited to that fund and accounts	2233
as and to the extent provided in the applicable bond proceedings.	2234

(3) "Capital facilities" means capital facilities or projects	2235
as referred to in section 151.03, 151.04, 151.05, 151.06, 151.07,	2236
151.08, 151.09, or 151.40 of the Revised Code.	2237

(4) "Costs of capital facilities" means the costs of	2238
acquiring, constructing, reconstructing, rehabilitating,	2239
remodeling, renovating, enlarging, improving, equipping, or	2240
furnishing capital facilities, and of the financing of those	2241
costs. "Costs of capital facilities" includes, without limitation,	2242
and in addition to costs referred to in section 151.03, 151.04,	2243
151.05, 151.06, 151.07, 151.08, 151.09, or 151.40 of the Revised	2244
Code, the cost of clearance and preparation of the site and of any	2245
land to be used in connection with capital facilities, the cost of	2246
any indemnity and surety bonds and premiums on insurance, all	2247
related direct administrative expenses and allocable portions of	2248
direct costs of the issuing authority, costs of engineering and	2249
architectural services, designs, plans, specifications, surveys,	2250
and estimates of cost, financing costs, interest on obligations	2251
from their date to the time when interest is to be paid from	2252
sources other than proceeds of obligations, amounts necessary to	2253
establish any reserves as required by the bond proceedings, the	2254
reimbursement of all moneys advanced or applied by or borrowed	2255
from any person or governmental agency or entity for the payment	2256
of any item of costs of capital facilities, and all other expenses	2257
necessary or incident to planning or determining feasibility or	2258
practicability with respect to capital facilities, and such other	2259
expenses as may be necessary or incident to the acquisition,	2260
construction, reconstruction, rehabilitation, remodeling,	2261
renovation, enlargement, improvement, equipment, and furnishing of	2262
capital facilities, the financing of those costs, and the placing	2263
of the capital facilities in use and operation, including any one,	2264
part of, or combination of those classes of costs and expenses.	2265

(5) "Credit enhancement facilities," "financing costs," and	2266
"interest" or "interest equivalent" have the same meanings as in	2267
section 133.01 of the Revised Code.	2268

(6) "Debt service" means principal, including any mandatory	2269
sinking fund or redemption requirements for retirement of	2270
obligations, interest and other accreted amounts, interest	2271
equivalent, and any redemption premium, payable on obligations.	2272
If not prohibited by the applicable bond proceedings, debt service	2273
includesmay include costs relating to credit enhancement	2274
facilities that are related to and represent, or are intended to	2275
provide a source of payment of or limitation on, other debt	2276
service.	2277

(7) "Issuing authority" means the Ohio public facilities	2278
commission created in section 151.02 of the Revised Code for	2279
obligations issued under section 151.03, 151.04, 151.05, 151.07,	2280
or 151.09 of the Revised Code, or the treasurer of state, or the	2281
officer who by law performs the functions of that office, for	2282
obligations issued under section 151.06, 151.08, or 151.40 of the	2283
Revised Code.	2284

(8) "Net proceeds" means amounts received from the sale of	2285
obligations, excluding amounts used to refund or retire	2286
outstanding obligations, amounts required to be deposited into	2287
special funds pursuant to the applicable bond proceedings, and	2288
amounts to be used to pay financing costs.	2289

(9) "Obligations" means bonds, notes, or other evidences of	2290
obligation of the state, including any appertaining interest	2291
coupons, issued pursuant to sections 151.01 to 151.09 or 151.40	2292
of the Revised Code.	2293

(10) "Principal amount" means the aggregate of the amount as	2294
stated or provided for in the applicable bond proceedings as the	2295
amount on which interest or interest equivalent on particular	2296
obligations is initially calculated. Principal amount does not	2297
include any premium paid to the state by the initial purchaser of	2298
the obligations. "Principal amount" of a capital appreciation	2299
bond, as defined in division (C) of section 3334.01 of the Revised	2300
Code, means its face amount, and "principal amount" of a zero	2301
coupon bond, as defined in division (J) of section 3334.01 of the	2302
Revised Code, means the discounted offering price at which the	2303
bond is initially sold to the public, disregarding any purchase	2304
price discount to the original purchaser, if provided for pursuant	2305
to the bond proceedings.	2306

(11) "Special funds" or "funds," unless the context indicates	2307
otherwise, means the bond service fund, and any other funds,	2308
including any reserve funds, created under the bond proceedings	2309
and stated to be special funds in those proceedings, including	2310
moneys and investments, and earnings from investments, credited	2311
and to be credited to the particular fund. Special funds do not	2312
include the school building program assistance fund created by	2313
section 3318.25 of the Revised Code, the higher education	2314
improvement fund created by division (F) of section 154.21 of the	2315
Revised Code, the highway capital improvement bond fund created by	2316
section 5528.53 of the Revised Code, the state parks and natural	2317
resources fund created by section 1557.02 of the Revised Code, the	2318
coal research and development fund created by section 1555.15 of	2319
the Revised Code, the clean Ohio conservation fund created by	2320
section 164.27 of the Revised Code, the clean Ohio revitalization	2321
fund created by section 122.658 of the Revised Code, or other	2322
funds created by the bond proceedings that are not stated by those	2323
proceedings to be special funds.	2324

(B) Subject to Section 2l, 2m, 2n, 2o, or 15, and Section	2325
17, of Article VIII, Ohio Constitution, the state, by the issuing	2326
authority, is authorized to issue and sell, as provided in	2327
sections 151.03 to 151.09 or 151.40 of the Revised Code, and in	2328
respective aggregate principal amounts as from time to time	2329
provided or authorized by the general assembly, general	2330
obligations of this state for the purpose of paying costs of	2331
capital facilities or projects identified by or pursuant to	2332
general assembly action.	2333

(C) Each issue of obligations shall be authorized by	2334
resolution or order of the issuing authority. The bond	2335
proceedings shall provide for or authorize the manner for	2336
determining the principal amount or maximum principal amount of	2337
obligations of an issue, the principal maturity or maturities, the	2338
interest rate or rates, the date of and the dates of payment of	2339
interest on the obligations, their denominations, and the place or	2340
places of payment of debt service which may be within or outside	2341
the state. Unless otherwise provided by law, the latest principal	2342
maturity may not be later than the earlier of the thirty-first day	2343
of December of the twenty-fifth calendar year after the year of	2344
issuance of the particular obligations or of the twenty-fifth	2345
calendar year after the year in which the original obligation to	2346
pay was issued or entered into. Sections 9.96, 9.98, 9.981,	2347
9.982, and 9.983 of the Revised Code apply to obligations. The	2348
purpose of the obligations may be stated in the bond proceedings	2349
in general terms, such as, as applicable, "financing or assisting	2350
in the financing of projects as provided in Section 2l of Article	2351
VIII, Ohio Constitution," "financing or assisting in the financing	2352
of highway capital improvement projects as provided in Section 2m	2353
of Article VIII, Ohio Constitution," "paying costs of capital	2354
facilities for a system of common schools throughout the state as	2355
authorized by Section 2n of Article VIII, Ohio Constitution,"	2356
"paying costs of capital facilities for state-supported and	2357
state-assisted institutions of higher education as authorized by	2358
Section 2n of Article VIII, Ohio Constitution," "paying costs of	2359
coal research and development as authorized by Section 15 of	2360
Article VIII, Ohio Constitution," "financing or assisting in the	2361
financing of local subdivision capital improvement projects as	2362
authorized by Section 2m of Article VIII, Ohio Constitution,"	2363
"paying costs of conservation projects as authorized by Section 2o	2364
of Article VIII, Ohio Constitution," or "paying costs of	2365
revitalization projects as authorized by Section 2o of Article	2366
VIII, Ohio Constitution."	2367

(D) The issuing authority may appoint or provide for the	2368
appointment of paying agents, bond registrars, securities	2369
depositories, clearing corporations, and transfer agents, and may	2370
without need for any other approval retain or contract for the	2371
services of underwriters, investment bankers, financial advisers,	2372
accounting experts, marketing, remarketing, indexing, and	2373
administrative agents, other consultants, and independent	2374
contractors, including printing services, as are necessary in the	2375
judgment of the issuing authority to carry out the issuing	2376
authority's functions under this chapter. When the issuing	2377
authority is the Ohio public facilities commission, the issuing	2378
authority also may without need for any other approval retain or	2379
contract for the services of attorneys and other professionals for	2380
that purpose. Financing costs are payable, as may be provided in	2381
the bond proceedings, from the proceeds of the obligations, from	2382
special funds, or from other moneys available for the purpose.	2383

(E) The bond proceedings may contain additional provisions	2384
customary or appropriate to the financing or to the obligations or	2385
to particular obligations including, but not limited to,	2386
provisions for:	2387

(1) The redemption of obligations prior to maturity at the	2388
option of the state or of the holder or upon the occurrence of	2389
certain conditions, and at particular price or prices and under	2390
particular terms and conditions;	2391

(2) The form of and other terms of the obligations;

2392

(3) The establishment, deposit, investment, and application	2393
of special funds, and the safeguarding of moneys on hand or on	2394
deposit, in lieu of the applicability of provisions of Chapter	2395
131. or 135. of the Revised Code, but subject to any special	2396
provisions of sections 151.01 to 151.09 or 151.40 of the Revised	2397
Code with respect to the application of particular funds or	2398
moneys. Any financial institution that acts as a depository of	2399
any moneys in special funds or other funds under the bond	2400
proceedings may furnish indemnifying bonds or pledge securities as	2401
required by the issuing authority.	2402

(4) Any or every provision of the bond proceedings being	2403
binding upon the issuing authority and upon such governmental	2404
agency or entity, officer, board, commission, authority, agency,	2405
department, institution, district, or other person or body as may	2406
from time to time be authorized to take actions as may be	2407
necessary to perform all or any part of the duty required by the	2408
provision;	2409

(5) The maintenance of each pledge or instrument comprising	2410
part of the bond proceedings until the state has fully paid or	2411
provided for the payment of the debt service on the obligations or	2412
met other stated conditions;	2413

(6) In the event of default in any payments required to be	2414
made by the bond proceedings, or by any other agreement of the	2415
issuing authority made as part of a contract under which the	2416
obligations were issued or secured, including a credit enhancement	2417
facility, the enforcement of those payments by mandamus, a suit in	2418
equity, an action at law, or any combination of those remedial	2419
actions;	2420

(7) The rights and remedies of the holders or owners of	2421
obligations or of book-entry interests in them, and of third	2422
parties under any credit enhancement facility, and provisions for	2423
protecting and enforcing those rights and remedies, including	2424
limitations on rights of individual holders or owners;	2425

(8) The replacement of mutilated, destroyed, lost, or stolen	2426
obligations;	2427

(9) The funding, refunding, or advance refunding, or other	2428
provision for payment, of obligations that will then no longer be	2429
outstanding for purposes of this section or of the applicable bond	2430
proceedings;	2431

(10) Amendment of the bond proceedings;

2432

(11) Any other or additional agreements with the owners of	2433
obligations, and such other provisions as the issuing authority	2434
determines, including limitations, conditions, or qualifications,	2435
relating to any of the foregoing.	2436

(F) The great seal of the state or a facsimile of it may be	2437
affixed to or printed on the obligations. The obligations	2438
requiring execution by or for the issuing authority shall be	2439
signed as provided in the bond proceedings. Any obligations may	2440
be signed by the individual who on the date of execution is the	2441
authorized signer although on the date of these obligations that	2442
individual is not an authorized signer. In case the individual	2443
whose signature or facsimile signature appears on any obligation	2444
ceases to be an authorized signer before delivery of the	2445
obligation, that signature or facsimile is nevertheless valid and	2446
sufficient for all purposes as if that individual had remained the	2447
authorized signer until delivery.	2448

(G) Obligations are investment securities under Chapter	2449
1308. of the Revised Code. Obligations may be issued in bearer or	2450
in registered form, registrable as to principal alone or as to	2451
both principal and interest, or both, or in certificated or	2452
uncertificated form, as the issuing authority determines.	2453
Provision may be made for the exchange, conversion, or transfer of	2454
obligations and for reasonable charges for registration, exchange,	2455
conversion, and transfer. Pending preparation of final	2456
obligations, the issuing authority may provide for the issuance of	2457
interim instruments to be exchanged for the final obligations.	2458

(H) Obligations may be sold at public sale or at private	2459
sale, in such manner, and at such price at, above or below par,	2460
all as determined by and provided by the issuing authority in the	2461
bond proceedings.	2462

(I) Except to the extent that rights are restricted by the	2463
bond proceedings, any owner of obligations or provider of a credit	2464
enhancement facility may by any suitable form of legal proceedings	2465
protect and enforce any rights relating to obligations or that	2466
facility under the laws of this state or granted by the bond	2467
proceedings. Those rights include the right to compel the	2468
performance of all applicable duties of the issuing authority and	2469
the state. Each duty of the issuing authority and that	2470
authority's officers, staff, and employees, and of each state	2471
entity or agency, or using district or using institution, and its	2472
officers, members, staff, or employees, undertaken pursuant to the	2473
bond proceedings, is hereby established as a duty of the entity or	2474
individual having authority to perform that duty, specifically	2475
enjoined by law and resulting from an office, trust, or station	2476
within the meaning of section 2731.01 of the Revised Code. The	2477
individuals who are from time to time the issuing authority,	2478
members or officers of the issuing authority, or those members'	2479
designees acting pursuant to section 154.02 of the Revised Code,	2480
or the issuing authority's officers, staff, or employees, are not	2481
liable in their personal capacities on any obligations or	2482
otherwise under the bond proceedings.	2483

(J)(1) Subject to Section 2l, 2m, 2n, 2o, or 15, and	2484
Section 17, of Article VIII, Ohio Constitution and sections 151.01	2485
to 151.09 or 151.40 of the Revised Code, the issuing authority	2486
may, in addition to the authority referred to in division (B) of	2487
this section, authorize and provide for the issuance of:	2488

(a) Obligations in the form of bond anticipation notes, and	2489
may provide for the renewal of those notes from time to time by	2490
the issuance of new notes. The holders of notes or appertaining	2491
interest coupons have the right to have debt service on those	2492
notes paid solely from the moneys and special funds that are or	2493
may be pledged to that payment, including the proceeds of bonds or	2494
renewal notes or both, as the issuing authority provides in the	2495
bond proceedings authorizing the notes. Notes may be additionally	2496
secured by covenants of the issuing authority to the effect that	2497
the issuing authority and the state will do all things necessary	2498
for the issuance of bonds or renewal notes in such principal	2499
amount and upon such terms as may be necessary to provide moneys	2500
to pay when due the debt service on the notes, and apply their	2501
proceeds to the extent necessary, to make full and timely payment	2502
of debt service on the notes as provided in the applicable bond	2503
proceedings. In the bond proceedings authorizing the issuance of	2504
bond anticipation notes the issuing authority shall set forth for	2505
the bonds anticipated an estimated schedule of annual principal	2506
payments the latest of which shall be no later than provided in	2507
division (C) of this section. While the notes are outstanding	2508
there shall be deposited, as shall be provided in the bond	2509
proceedings for those notes, from the sources authorized for	2510
payment of debt service on the bonds, amounts sufficient to pay	2511
the principal of the bonds anticipated as set forth in that	2512
estimated schedule during the time the notes are outstanding,	2513
which amounts shall be used solely to pay the principal of those	2514
notes or of the bonds anticipated.	2515

(b) Obligations for the refunding, including funding and	2516
retirement, and advance refunding with or without payment or	2517
redemption prior to maturity, of any obligations previously	2518
issued. Refunding obligations may be issued in amounts sufficient	2519
to pay or to provide for repayment of the principal amount,	2520
including principal amounts maturing prior to the redemption of	2521
the remaining prior obligations, any redemption premium, and	2522
interest accrued or to accrue to the maturity or redemption date	2523
or dates, payable on the prior obligations, and related financing	2524
costs and any expenses incurred or to be incurred in connection	2525
with that issuance and refunding. Subject to the applicable bond	2526
proceedings, the portion of the proceeds of the sale of refunding	2527
obligations issued under division (J)(1)(b) of this section to be	2528
applied to debt service on the prior obligations shall be credited	2529
to an appropriate separate account in the bond service fund and	2530
held in trust for the purpose by the issuing authority or by a	2531
corporate trustee. Obligations authorized under this division	2532
shall be considered to be issued for those purposes for which the	2533
prior obligations were issued.	2534

(2) Except as otherwise provided in sections 151.01 to	2535
151.09 or 151.40 of the Revised Code, bonds or notes authorized	2536
pursuant to division (J) of this section are subject to the	2537
provisions of those sections pertaining to obligations generally.	2538

(3) The principal amount of refunding or renewal obligations	2539
issued pursuant to division (J) of this section shall be in	2540
addition to the amount authorized by the general assembly as	2541
referred to in division (B) of the following sections: section	2542
151.03, 151.04, 151.05, 151.06, 151.07, 151.08, 151.09, or 151.40	2543
of the Revised Code.	2544

(K) Obligations are lawful investments for banks, savings	2545
and loan associations, credit union share guaranty corporations,	2546
trust companies, trustees, fiduciaries, insurance companies,	2547
including domestic for life and domestic not for life, trustees or	2548
other officers having charge of sinking and bond retirement or	2549
other special funds of the state and political subdivisions and	2550
taxing districts of this state, the sinking fund, the	2551
administrator of workers' compensation subject to the approval of	2552
the workers' compensation board, the state teachers retirement	2553
system, the public employees retirement system, the school	2554
employees retirement system, and the Ohio police and fire pension	2555
fund, notwithstanding any other provisions of the Revised Code or	2556
rules adopted pursuant to those provisions by any state agency	2557
with respect to investments by them, and are also acceptable as	2558
security for the repayment of the deposit of public moneys. The	2559
exemptions from taxation in Ohio as provided for in particular	2560
sections of the Ohio Constitution and section 5709.76 of the	2561
Revised Code apply to the obligations.	2562

(L)(1) Unless otherwise provided or provided for in any	2563
applicable bond proceedings, moneys to the credit of or in a	2564
special fund shall be disbursed on the order of the issuing	2565
authority. No such order is required for the payment, from the	2566
bond service fund or other special fund, when due of debt service	2567
or required payments under credit enhancement facilities.	2568

(2) Payments received by the state under interest rate	2569
hedges entered into as credit enhancement facilities under this	2570
chapter shall be deposited to the credit of the bond service fund	2571
for the obligations to which those credit enhancement facilities	2572
relate.	2573

(M) The full faith and credit, revenue, and taxing power of	2574
the state are and shall be pledged to the timely payment of debt	2575
service on outstanding obligations as it comes due, all in	2576
accordance with Section 2l, 2m, 2n, 2o, or 15 of Article VIII,	2577
Ohio Constitution, and section 151.03, 151.04, 151.05, 151.06,	2578
151.07, 151.08, or 151.09 of the Revised Code. Moneys referred	2579
to in Section 5a of Article XII, Ohio Constitution, may not be	2580
pledged or used for the payment of debt service except on	2581
obligations referred to in section 151.06 of the Revised Code. Net	2582
state lottery proceeds, as provided for and referred to in section	2583
3770.06 of the Revised Code, may not be pledged or used for the	2584
payment of debt service except on obligations referred to in	2585
section 151.03 of the Revised Code. The state covenants, and that	2586
covenant shall be controlling notwithstanding any other provision	2587
of law, that the state and the applicable officers and agencies of	2588
the state, including the general assembly, shall, so long as any	2589
obligations are outstanding in accordance with their terms,	2590
maintain statutory authority for and cause to be levied, collected	2591
and applied sufficient pledged excises, taxes, and revenues of the	2592
state so that the revenues shall be sufficient in amounts to pay	2593
debt service when due, to establish and maintain any reserves and	2594
other requirements, and to pay financing costs, including costs of	2595
or relating to credit enhancement facilities, all as provided for	2596
in the bond proceedings. Those excises, taxes, and revenues are	2597
and shall be deemed to be levied and collected, in addition to the	2598
purposes otherwise provided for by law, to provide for the payment	2599
of debt service and financing costs in accordance with sections	2600
151.01 to 151.09 of the Revised Code and the bond proceedings.	2601

(N) The general assembly may from time to time repeal or	2602
reduce any excise, tax, or other source of revenue pledged to the	2603
payment of the debt service pursuant to Section 2l, 2m, 2n, 2o, or	2604
15 of Article VIII, Ohio Constitution, and sections 151.01 to	2605
151.09 or 151.40 of the Revised Code, and may levy, collect and	2606
apply any new or increased excise, tax, or revenue to meet the	2607
pledge, to the payment of debt service on outstanding obligations,	2608
of the state's full faith and credit, revenue and taxing power, or	2609
of designated revenues and receipts, except fees, excises or taxes	2610
referred to in Section 5a of Article XII, Ohio Constitution, for	2611
other than obligations referred to in section 151.06 of the	2612
Revised Code and except net state lottery proceeds for other than	2613
obligations referred to in section 151.03 of the Revised Code.	2614
Nothing in division (N) of this section authorizes any impairment	2615
of the obligation of this state to levy and collect sufficient	2616
excises, taxes, and revenues to pay debt service on obligations	2617
outstanding in accordance with their terms.	2618

(O) Each bond service fund is a trust fund and is hereby	2619
pledged to the payment of debt service on the applicable	2620
obligations. Payment of that debt service shall be made or	2621
provided for by the issuing authority in accordance with the bond	2622
proceedings without necessity for any act of appropriation. The	2623
bond proceedings may provide for the establishment of separate	2624
accounts in the bond service fund and for the application of those	2625
accounts only to debt service on specific obligations, and for	2626
other accounts in the bond service fund within the general	2627
purposes of that fund.	2628

(P) Subject to the bond proceedings pertaining to any	2629
obligations then outstanding in accordance with their terms, the	2630
issuing authority may in the bond proceedings pledge all, or such	2631
portion as the issuing authority determines, of the moneys in the	2632
bond service fund to the payment of debt service on particular	2633
obligations, and for the establishment and maintenance of any	2634
reserves for payment of particular debt service.	2635

(Q) The issuing authority shall by the fifteenth day of	2636
July of each fiscal year, certify or cause to be certified to the	2637
office of budget and management the total amount of moneys	2638
required during the current fiscal year to meet in full all debt	2639
service on the respective obligations and any related financing	2640
costs payable from the applicable bond service fund and not from	2641
the proceeds of refunding or renewal obligations. The issuing	2642
authority shall make or cause to be made supplemental	2643
certifications to the office of budget and management for each	2644
debt service payment date and at such other times during each	2645
fiscal year as may be provided in the bond proceedings or	2646
requested by that office. Debt service, costs of credit	2647
enhancement facilities, and other financing costs shall be set	2648
forth separately in each certification. If and so long as the	2649
moneys to the credit of the bond service fund, together with any	2650
other moneys available for the purpose, are insufficient to meet	2651
in full all payments when due of the amount required as stated in	2652
the certificate or otherwise, the office of budget and management	2653
shall at the times as provided in the bond proceedings, and	2654
consistent with any particular provisions in sections 151.03 to	2655
151.09 and 151.40 of the Revised Code, transfer a sufficient	2656
amount to the bond service fund from the pledged revenues in the	2657
case of obligations issued pursuant to section 151.40 of the	2658
Revised Code, and in the case of other obligations from the	2659
revenues derived from excises, taxes, and other revenues,	2660
including net state lottery proceeds in the case of obligations	2661
referred to in section 151.03 of the Revised Code.	2662

(R) Unless otherwise provided in any applicable bond	2663
proceedings, moneys to the credit of special funds may be invested	2664
by or on behalf of the state only in one or more of the following:	2665

(1) Notes, bonds, or other direct obligations of the United	2666
States or of any agency or instrumentality of the United States,	2667
or in no-front-end-load money market mutual funds consisting	2668
exclusively of those obligations, or in repurchase agreements,	2669
including those issued by any fiduciary, secured by those	2670
obligations, or in collective investment funds consisting	2671
exclusively of those obligations;	2672

(2) Obligations of this state or any political subdivision	2673
of this state;	2674

(3) Certificates of deposit of any national bank located in	2675
this state and any bank, as defined in section 1101.01 of the	2676
Revised Code, subject to inspection by the superintendent of	2677
financial institutions;	2678

(4) The treasurer of state's pooled investment program under	2679
section 135.45 of the Revised Code.	2680

The income from investments referred to in division (R) of	2681
this section shall, unless otherwise provided in sections 151.01	2682
to 151.09 or 151.40 of the Revised Code, be credited to special	2683
funds or otherwise as the issuing authority determines in the bond	2684
proceedings. Those investments may be sold or exchanged at times	2685
as the issuing authority determines, provides for, or authorizes.	2686

(S) The treasurer of state shall have responsibility for	2687
keeping records, making reports, and making payments, relating to	2688
any arbitrage rebate requirements under the applicable bond	2689
proceedings.	2690

Sec. 151.40. (A) As used in this section:

2691

(1) "Bond proceedings" includes any trust agreements, and	2692
any amendments or supplements to them, as authorized by this	2693
section.	2694

(2) "Costs of revitalization projects" includes related	2695
direct administrative expenses and allocable portions of the	2696
direct costs of those projects of the department of development or	2697
the environmental protection agency.	2698

(3) "Issuing authority" means the treasurer of state.

2699

(4) "Obligations" means obligations as defined in section	2700
151.01 of the Revised Code issued to pay the costs of projects for	2701
revitalization purposes as referred to in division (A)(2) of	2702
Section 2o of Article VIII, Ohio Constitution.	2703

(5) "Pledged liquor profits" means all receipts of the state	2704
representing the gross profit on the sale of spirituous liquor, as	2705
referred to in division (B)(4) of section 4301.10 of the Revised	2706
Code, after paying all costs and expenses of the division of	2707
liquor control and providing an adequate working capital reserve	2708
for the division of liquor control as provided in that division,	2709
but excluding the sum required by the second paragraph of section	2710
4301.12 of the Revised Code, as it was in effect on May 2, 1980,	2711
to be paid into the state treasury.	2712

(6) "Pledged receipts" means, as and to the extent provided	2713
in bond proceedings:	2714

(a) Pledged liquor profits. The pledge of pledged liquor	2715
profits to obligations is subject to the priority of the pledge of	2716
those profits to obligations issued and to be issued, and	2717
guarantees made and to be made, pursuant to Chapter 166. of the	2718
Revised Code.	2719

(b) Moneys accruing to the state from the lease, sale, or	2720
other disposition or use of revitalization projects or from the	2721
repayment, including any interest, of loans or advances made from	2722
net proceeds;	2723

(c) Accrued interest received from the sale of obligations;

2724

(d) Income from the investment of the special funds;

2725

(e) Any gifts, grants, donations, or pledges, and receipts	2726
therefrom, available for the payment of debt service;	2727

(f) Additional or any other specific revenues or receipts	2728
lawfully available to be pledged, and pledged, pursuant to further	2729
authorization by the general assembly, to the payment of debt	2730
service.	2731

(B) The issuing authority shall issue obligations of the	2732
state to pay costs of revitalization projects pursuant to division	2733
(B)(2) of Section 2o of Article VIII, Ohio Constitution, section	2734
151.01 of the Revised Code as applicable to this section, and this	2735
section. The issuing authority, upon the certification to it by	2736
the clean Ohio council of the amount of moneys needed in and for	2737
the purposes of the clean Ohio revitalization fund created by	2738
section 122.658 of the Revised Code, shall issue obligations in	2739
the amount determined by the issuing authority to be required for	2740
those purposes. The total principal amount of obligations issued	2741
under this section shall not exceed two hundred million dollars.	2742
The provisions and authorizations in section 151.01 of the Revised	2743
Code apply to the obligations and the bond proceedings except as	2744
otherwise provided or provided for in those obligations and bond	2745
proceedings.	2746

(C) Net proceeds of obligations shall be deposited in the	2747
clean Ohio revitalization fund created in section 122.658 of the	2748
Revised Code.	2749

(D) There is hereby created the revitalization projects bond	2750
service fund, which shall be in the custody of the treasurer of	2751
state, but shall be separate and apart from and not a part of the	2752
state treasury. All money received by the state and required by	2753
the bond proceedings, consistent with section 151.01 of the	2754
Revised Code and this section, to be deposited, transferred, or	2755
credited to the bond service fund, and all other money transferred	2756
or allocated to or received for the purposes of that fund, shall	2757
be deposited and credited to the bond service fund, subject to any	2758
applicable provisions of the bond proceedings, but without	2759
necessity for any act of appropriation. During the period	2760
beginning with the date of the first issuance of obligations and	2761
continuing during the time that any obligations are outstanding in	2762
accordance with their terms, so long as moneys in the bond service	2763
fund are insufficient to pay debt service when due on those	2764
obligations payable from that fund, except the principal amounts	2765
of bond anticipation notes payable from the proceeds of renewal	2766
notes or bonds anticipated, and due in the particular fiscal year,	2767
a sufficient amount of pledged receipts is committed and, without	2768
necessity for further act of appropriation, shall be paid to the	2769
bond service fund for the purpose of paying that debt service when	2770
due.	2771

(E) The issuing authority may pledge all, or such portion as	2772
the issuing authority determines, of the pledged receipts to the	2773
payment of the debt service charges on obligations issued under	2774
this section, and for the establishment and maintenance of any	2775
reserves, as provided in the bond proceedings, and make other	2776
provisions in the bond proceedings with respect to pledged	2777
receipts as authorized by this section, which provisions are	2778
controlling notwithstanding any other provisions of law pertaining	2779
to them.	2780

(F) The issuing authority may covenant in the bond	2781
proceedings, and such covenants shall be controlling	2782
notwithstanding any other provision of law, that the state and	2783
applicable officers and state agencies, including the general	2784
assembly, so long as any obligations issued under this section are	2785
outstanding, shall maintain statutory authority for and cause to	2786
be charged and collected wholesale or retail prices for spirituous	2787
liquor sold by the state or its agents so that the available	2788
pledged receipts are sufficient in time and amount to meet debt	2789
service payable from pledged liquor profits and for the	2790
establishment and maintenance of any reserves and other	2791
requirements provided for in the bond proceedings.	2792

(G) Obligations may be further secured, as determined by the	2793
issuing authority, by a trust agreement between the state and a	2794
corporate trustee, which may be any trust company or bank having	2795
its principal place of business within the state. Any trust	2796
agreement may contain the resolution or order authorizing the	2797
issuance of the obligations, any provisions that may be contained	2798
in any bond proceedings, and other provisions that are customary	2799
or appropriate in an agreement of that type, including, but not	2800
limited to:	2801

(1) Maintenance of each pledge, trust agreement, or other	2802
instrument comprising part of the bond proceedings until the state	2803
has fully paid or provided for the payment of debt service on the	2804
obligations secured by it;	2805

(2) In the event of default in any payments required to be	2806
made by the bond proceedings, enforcement of those payments or	2807
agreements by mandamus, the appointment of a receiver, suit in	2808
equity, action at law, or any combination of them;	2809

(3) The rights and remedies of the holders or owners of	2810
obligations and of the trustee and provisions for protecting and	2811
enforcing them, including limitations on rights of individual	2812
holders and owners.	2813

(H) The obligations shall not be general obligations of the	2814
state and the full faith and credit, revenue, and taxing power of	2815
the state shall not be pledged to the payment of debt service on	2816
them. The holders or owners of the obligations shall have no right	2817
to have any moneys obligated or pledged for the payment of debt	2818
service except as provided in this section and in the applicable	2819
bond proceedings. The rights of the holders and owners to payment	2820
of debt service are limited to all or that portion of the pledged	2821
receipts, and those special funds, pledged to the payment of debt	2822
service pursuant to the bond proceedings in accordance with this	2823
section, and each obligation shall bear on its face a statement to	2824
that effect.	2825

Sec. 152.09.  (A) As used in sections 152.06 and 152.09 to	2826
152.33 of the Revised Code:	2827

(1) "Obligations" means bonds, notes, or other evidences of	2828
obligation, including interest coupons pertaining thereto, issued	2829
pursuant to sections 152.09 to 152.33 of the Revised Code.	2830

(2) "State agencies" means the state of Ohio and branches,	2831
officers, boards, commissions, authorities, departments,	2832
divisions, courts, general assembly, or other units or agencies of	2833
the state. "State agency" also includes counties, municipal	2834
corporations, and governmental entities of this state that enter	2835
into leases with the Ohio building authority pursuant to section	2836
152.31 of the Revised Code or that are designated by law as state	2837
agencies for the purpose of performing a state function that is to	2838
be housed by a capital facility for which the Ohio building	2839
authority is authorized to issue revenue obligations pursuant to	2840
sections 152.09 to 152.33 of the Revised Code.	2841

(3) "Bond service charges" means principal, including	2842
mandatory sinking fund requirements for retirement of obligations,	2843
and interest, and redemption premium, if any, required to be paid	2844
by the Ohio building authority on obligations.	2845

(4) "Capital facilities" means buildings, structures, and	2846
other improvements, and equipment, real estate, and interests in	2847
real estate therefor, within the state, and any one, part of, or	2848
combination of the foregoing, for housing of branches and agencies	2849
of state government, including capital facilities for the purpose	2850
of housing personnel, equipment, or functions, or any combination	2851
thereof that the state agencies are responsible for housing, for	2852
which the Ohio building authority is authorized to issue	2853
obligations pursuant to Chapter 152. of the Revised Code, and	2854
includes storage and parking facilities related to such capital	2855
facilities.	2856

(5) "Cost of capital facilities" means the costs of	2857
acquiring, constructing, reconstructing, rehabilitating,	2858
remodeling, renovating, enlarging, improving, altering,	2859
maintaining, equipping, furnishing, repairing, painting,	2860
decorating, managing, or operating capital facilities, and the	2861
financing thereof, including the cost of clearance and preparation	2862
of the site and of any land to be used in connection with capital	2863
facilities, the cost of participating in capital facilities	2864
pursuant to section 152.33 of the Revised Code, the cost of any	2865
indemnity and surety bonds and premiums on insurance, all related	2866
direct administrative expenses and allocable portions of direct	2867
costs of the authority and lessee state agencies, cost of	2868
engineering and architectural services, designs, plans,	2869
specifications, surveys, and estimates of cost, legal fees, fees	2870
and expenses of trustees, depositories, and paying agents for the	2871
obligations, cost of issuance of the obligations and financing	2872
charges and fees and expenses of financial advisers and	2873
consultants in connection therewith, interest on obligations from	2874
the date thereof to the time when interest is to be covered from	2875
sources other than proceeds of obligations, amounts necessary to	2876
establish reserves as required by the resolutions or the	2877
obligations, trust agreements, or indentures, costs of audits, the	2878
reimbursement of all moneys advanced or applied by or borrowed	2879
from any governmental entity, whether to or by the authority or	2880
others, from whatever source provided, for the payment of any item	2881
or items of cost of the capital facilities, any share of the cost	2882
undertaken by the authority pursuant to arrangements made with	2883
governmental entities under division (J) of section 152.21 of the	2884
Revised Code, and all other expenses necessary or incident to	2885
planning or determining the feasibility or practicability with	2886
respect to capital facilities, and such other expenses as may be	2887
necessary or incident to the acquisition, construction,	2888
reconstruction, rehabilitation, remodeling, renovation,	2889
enlargement, improvement, alteration, maintenance, equipment,	2890
furnishing, repair, painting, decoration, management, or operation	2891
of capital facilities, the financing thereof and the placing of	2892
the same in use and operation, including any one, part of, or	2893
combination of such classes of costs and expenses.	2894

(6) "Governmental entity" means any state agency, municipal	2895
corporation, county, township, school district, and any other	2896
political subdivision or special district in this state	2897
established pursuant to law, and, except where otherwise	2898
indicated, also means the United States or any of the states or	2899
any department, division, or agency thereof, and any agency,	2900
commission, or authority established pursuant to an interstate	2901
compact or agreement.	2902

(7) "Governing body" means:

2903

(a) In the case of a county, the board of county	2904
commissioners or other legislative authority; in the case of a	2905
municipal corporation, the legislative authority; in the case of a	2906
township, the board of township trustees; in the case of a school	2907
district, the board of education;	2908

(b) In the case of any other governmental entity, the	2909
officer, board, commission, authority, or other body having the	2910
general management of the entity or having jurisdiction or	2911
authority in the particular circumstances.	2912

(8) "Available receipts" means fees, charges, revenues,	2913
grants, subsidies, income from the investment of moneys, proceeds	2914
from the sale of goods or services, and all other revenues or	2915
receipts received by or on behalf of any state agency for which	2916
capital facilities are financed with obligations issued under	2917
Chapter 152. of the Revised Code, any state agency participating	2918
in capital facilities pursuant to section 152.33 of the Revised	2919
Code, or any state agency by which the capital facilities are	2920
constructed or financed; revenues or receipts derived by the	2921
authority from the operation, leasing, or other disposition of	2922
capital facilities, and the proceeds of obligations issued under	2923
Chapter 152. of the Revised Code; and also any moneys appropriated	2924
by a governmental entity, gifts, grants, donations, and pledges,	2925
and receipts therefrom, available for the payment of bond service	2926
charges on such obligations.	2927

(B) Pursuant to the powers granted to the general assembly	2928
under Section 2i of Article VIII, Ohio Constitution, to authorize	2929
the issuance of revenue obligations and other obligations, the	2930
owners or holders of which are not given the right to have excises	2931
or taxes levied by the general assembly for the payment of	2932
principal thereof or interest thereon, the Ohio building authority	2933
may issue obligations, in accordance with Chapter 152. of the	2934
Revised Code, and shall cause the net proceeds thereof, after any	2935
deposits of accrued interest for the payment of bond service	2936
charges and after any deposit of all or such lesser portion as the	2937
authority may direct of the premium received upon the sale of	2938
those obligations for the payment of the bond service charges, to	2939
be applied to the costs of capital facilities designated by or	2940
pursuant to act of the general assembly for housing state agencies	2941
as authorized by Chapter 152. of the Revised Code. The authority	2942
shall provide by resolution for the issuance of such obligations.	2943
The bond service charges and all other payments required to be	2944
made by the trust agreement or indenture securing such obligations	2945
shall be payable solely from available receipts of the authority	2946
pledged thereto as provided in such resolution. The available	2947
receipts pledged and thereafter received by the authority are	2948
immediately subject to the lien of such pledge without any	2949
physical delivery thereof or further act, and the lien of any such	2950
pledge is valid and binding against all parties having claims of	2951
any kind against the authority, irrespective of whether those	2952
parties have notice thereof, and creates a perfected security	2953
interest for all purposes of Chapter 1309. of the Revised Code and	2954
a perfected lien for purposes of any real property interest, all	2955
without the necessity for separation or delivery of funds or for	2956
the filing or recording of the resolution, trust agreement,	2957
indenture, or other agreement by which such pledge is created or	2958
any certificate, statement, or other document with respect	2959
thereto; and the pledge of such available receipts is effective	2960
and the money therefrom and thereof may be applied to the purposes	2961
for which pledged. Every pledge, and every covenant and agreement	2962
made with respect to the pledge, made in the resolution may	2963
therein be extended to the benefit of the owners and holders of	2964
obligations authorized by Chapter 152. of the Revised Code, and to	2965
any trustee therefor, for the further securing of the payment of	2966
the bond service charges, and all or any rights under any	2967
agreement or lease made under this section may be assigned for	2968
such purpose. Obligations may be issued at one time or from time	2969
to time, and each issue shall be dated, shall mature at such time	2970
or times as determined by the authority not exceeding forty years	2971
from the date of issue, and may be redeemable before maturity at	2972
the option of the authority at such price or prices and under such	2973
terms and conditions as are fixed by the authority prior to the	2974
issuance of the obligations. The authority shall determine the	2975
form of the obligations, fix their denominations, establish their	2976
interest rate or rates, which may be a variable rate or rates, or	2977
the maximum interest rate, and establish within or without this	2978
state a place or places of payment of bond service charges.	2979

(C) The obligations shall be signed by the authority	2980
chairperson, vice-chairperson, and secretary-treasurer, and the	2981
authority seal shall be affixed. The signatures may be facsimile	2982
signatures and the seal affixed may be a facsimile seal, as	2983
provided by resolution of the authority. Any coupons attached may	2984
bear the facsimile signature of the chairperson. In case any	2985
officer who has signed any obligations, or caused the officer's	2986
facsimile signature to be affixed thereto, ceases to be such	2987
officer before such obligations have been delivered, such	2988
obligations may, nevertheless, be issued and delivered as though	2989
the person who had signed the obligations or caused the person's	2990
facsimile signature to be affixed thereto had not ceased to be	2991
such officer.	2992

Any obligations may be executed on behalf of the authority by	2993
an officer who, on the date of execution, is the proper officer	2994
although on the date of such obligations such person was not the	2995
proper officer.	2996

(D) All obligations issued by the authority shall have all	2997
the qualities and incidents of negotiable instruments and may be	2998
issued in coupon or in registered form, or both, as the authority	2999
determines. Provision may be made for the registration of any	3000
obligations with coupons attached thereto as to principal alone or	3001
as to both principal and interest, their exchange for obligations	3002
so registered, and for the conversion or reconversion into	3003
obligations with coupons attached thereto of any obligations	3004
registered as to both principal and interest, and for reasonable	3005
charges for such registration, exchange, conversion, and	3006
reconversion. The authority may sell its obligations in any	3007
manner and for such prices as it determines, except that the	3008
authority shall sell obligations sold at public or private sale in	3009
accordance with section 152.091 of the Revised Code.	3010

(E) The obligations of the authority, principal, interest,	3011
and any proceeds from their sale or transfer, are exempt from all	3012
taxation within this state.	3013

(F) The authority is authorized to issue revenue obligations	3014
and other obligations under Section 2i of Article VIII, Ohio	3015
Constitution, for the purpose of paying the cost of capital	3016
facilities for housing of branches and agencies of state	3017
government, including capital facilities for the purpose of	3018
housing personnel, equipment, or functions, or any combination	3019
thereof that the state agencies are responsible for housing, as	3020
are authorized by Chapter 152. of the Revised Code, and that are	3021
authorized by the general assembly by the appropriation of lease	3022
payments or other moneys for such capital facilities or by any	3023
other act of the general assembly, but not including the	3024
appropriation of moneys for feasibility studies for such capital	3025
facilities. This division does not authorize the authority to	3026
issue obligations pursuant to Section 2i of Article VIII, Ohio	3027
Constitution, to pay the cost of capital facilities for mental	3028
hygiene and retardation, parks and recreation, or state-supported	3029
or state-assisted institutions of higher education.	3030

Sec. 152.10.  The resolution of the Ohio building authority	3031
authorizing the issuance of authority obligations may contain	3032
provisions which shall be part of the contract with the holders of	3033
the obligations as to:	3034

(A) Pledging all or such portion as it determines of the	3035
available receipts of the authority for the payment of bond	3036
service charges and all other payments required to be made by the	3037
trust agreement or indenture securing such obligations, or	3038
restricting the security for a particular issue of obligations to	3039
specific revenues or receipts of the authority;	3040

(B) The acquisition, construction, reconstruction,	3041
equipment, furnishing, improvement, operation, alteration,	3042
enlargement, maintenance, insurance, and repair of capital	3043
facilities and sites therefor, and the duties of the authority	3044
with reference thereto;	3045

(C) Other terms of the obligations;

3046

(D) Limitations on the purposes to which the proceeds of the	3047
obligations may be applied;	3048

(E) The rate of rentals or other charges for the use of	3049
capital facilities, the revenues from which are pledged to the	3050
obligations authorized by such resolution, including limitations	3051
upon the power of the authority to modify such rentals or other	3052
charges;	3053

(F) The use of and the expenditures of the revenues of the	3054
authority in such manner and to such extent as shall be	3055
determined, which may include provision for the payment of the	3056
expenses of the operation, maintenance, and repair of capital	3057
facilities, and the operation and administration of the authority	3058
so that such expenses shall be paid or provided as a charge prior	3059
to the payment of bond service charges and all other payments	3060
required to be made by the trust agreement or indenture securing	3061
such obligations;	3062

(G) Limitations on the issuance of additional obligations;

3063

(H) The terms of any trust agreement or indenture securing	3064
the obligations or under which the same may be issued;	3065

(I) Any other or additional agreements with the holders of	3066
the obligations, or the trustee therefor with respect to the	3067
operation of the authority and with respect to its property,	3068
funds, and revenues, and insurance thereof, and of the authority,	3069
its members, officers, and employees;	3070

(J) The deposit and application of funds and the	3071
safeguarding of funds on hand or on deposit without regard to	3072
Chapter 131. of the Revised Code, including any deposits of	3073
accrued interest for the payment of bond service charges and any	3074
deposits of premium for the payment of bond service charges or for	3075
the application to the payment of costs of capital facilities;	3076

(K) Municipal bond insurance, letters of credit, and other	3077
related agreements, the cost of which may be included in the costs	3078
of issuance of the obligations, and the pledge, holding, and	3079
disposition of the proceeds thereof;	3080

(L) A covenant that the state and any using state agency	3081
shall, so long as such obligations are outstanding, cause to be	3082
charged and collected such revenues and receipts of, or from, any	3083
such using state agency constituting available receipts under the	3084
resolution sufficient in amount to provide for the payment of bond	3085
service charges on such obligations and for the establishment and	3086
maintenance of any reserves, as provided in the resolution for	3087
such obligations, which covenant shall be controlling	3088
notwithstanding any other provision of law pertainngpertaining to	3089
such revenues and receipts; provided that no covenant shall	3090
require the general assembly to appropriate money derived from the	3091
levying of excises or taxes for the payment of rent or bond	3092
service charges.	3093

Sec. 152.101. There is hereby created in the state treasury	3094
the administrative building fund which shall consist of proceeds	3095
of obligations authorized to pay the cost of capital facilities.	3096
Except as provided in section 123.10 of the Revised Code, all	3097
investment earnings of the fund shall be credited to the fund. The	3098
fund shall be used to pay the costs of capital facilities	3099
designated by or pursuant to an act of the general assembly.	3100

Sec. 166.01.  As used in this chapter:

3101

(A) "Allowable costs" means all or part of the costs of	3102
project facilities or eligible innovation projects, including	3103
costs of acquiring, constructing, reconstructing, rehabilitating,	3104
renovating, enlarging, improving, equipping, or furnishing project	3105
facilities or eligible innovation projects, site clearance and	3106
preparation, supplementing and relocating public capital	3107
improvements or utility facilities, designs, plans,	3108
specifications, surveys, studies, and estimates of costs, expenses	3109
necessary or incident to determining the feasibility or	3110
practicability of assisting an eligible project or an eligible	3111
innovation project or providing project facilities or facilities	3112
related to an eligible innovation project, architectural,	3113
engineering, and legal services fees and expenses, the costs of	3114
conducting any other activities as part of a voluntary action, and	3115
such other expenses as may be necessary or incidental to the	3116
establishment or development of an eligible project or an eligible	3117
innovation project, and reimbursement of moneys advanced or	3118
applied by any governmental agency or other person for allowable	3119
costs.	3120

(B) "Allowable innovation costs" includes allowable costs of	3121
eligible innovation projects and, in addition, includes the costs	3122
of research and development of eligible innovation projects;	3123
obtaining or creating any requisite software or computer hardware	3124
related to an eligible innovation project or the products or	3125
services associated therewith; testing (including, without	3126
limitation, quality control activities necessary for initial	3127
production), perfecting, and marketing of such products and	3128
services; creating and protecting intellectual property related to	3129
an eligible innovation project or any products or services related	3130
thereto, including costs of securing appropriate patent,	3131
trademark, trade secret, trade dress, copyright, or other form of	3132
intellectual property protection for an eligible innovation	3133
project or related products and services; all to the extent that	3134
such expenditures could be capitalized under then-applicable	3135
generally accepted accounting principles; and the reimbursement of	3136
moneys advanced or applied by any governmental agency or other	3137
person for allowable innovation costs.	3138

(C) "Eligible innovation project" includes an eligible	3139
project, including any project facilities associated with an	3140
eligible innovation project and, in addition, includes all	3141
tangible and intangible property related to a new product or	3142
process based on new technology or the creative application of	3143
existing technology, including research and development, product	3144
or process testing, quality control, market research, and related	3145
activities, that is to be acquired, established, expanded,	3146
remodeled, rehabilitated, or modernized for industry, commerce,	3147
distribution, or research, or any combination thereof, the	3148
operation of which, alone or in conjunction with other eligible	3149
projects, eligible innovation projects, or innovation property,	3150
will create new jobs or preserve existing jobs and employment	3151
opportunities and improve the economic welfare of the people of	3152
the state.	3153

(D) "Eligible project" means project facilities to be	3154
acquired, established, expanded, remodeled, rehabilitated, or	3155
modernized for industry, commerce, distribution, or research, or	3156
any combination thereof, the operation of which, alone or in	3157
conjunction with other facilities, will create new jobs or	3158
preserve existing jobs and employment opportunities and improve	3159
the economic welfare of the people of the state. "Eligible	3160
project" includes, without limitation, a voluntary action. For	3161
purposes of this division, "new jobs" does not include existing	3162
jobs transferred from another facility within the state, and	3163
"existing jobs" includes only those existing jobs with work places	3164
within the municipal corporation or unincorporated area of the	3165
county in which the eligible project is located.	3166

"Eligible project" does not include project facilities to be	3167
acquired, established, expanded, remodeled, rehabilitated, or	3168
modernized for industry, commerce, distribution, or research, or	3169
any combination of industry, commerce, distribution, or research,	3170
if the project facilities consist solely of	3171
point-of-final-purchase retail facilities. If the project	3172
facilities consist of both point-of-final-purchase retail	3173
facilities and nonretail facilities, only the portion of the	3174
project facilities consisting of nonretail facilities is an	3175
eligible project. If a warehouse facility is part of a	3176
point-of-final-purchase retail facility and supplies only that	3177
facility, the warehouse facility is not an eligible project.	3178
Catalog distribution facilities are not considered	3179
point-of-final-purchase retail facilities for purposes of this	3180
paragraph, and are eligible projects.	3181

(C)(E) "Financial assistance" means inducements under	3182
division (B) of section 166.02 of the Revised Code, loan	3183
guarantees under section 166.06 of the Revised Code, and direct	3184
loans under section 166.07 of the Revised Code.	3185

(D)(F) "Governmental action" means any action by a	3186
governmental agency relating to the establishment, development, or	3187
operation of an eligible project or eligible innovation project	3188
and project facilities that the governmental agency acting has	3189
authority to take or provide for the purpose under law, including,	3190
but not limited to, actions relating to contracts and agreements,	3191
zoning, building, permits, acquisition and disposition of	3192
property, public capital improvements, utility and transportation	3193
service, taxation, employee recruitment and training, and liaison	3194
and coordination with and among governmental agencies.	3195

(E)(G) "Governmental agency" means the state and any state	3196
department, division, commission, institution or authority; a	3197
municipal corporation, county, or township, and any agency	3198
thereof, and any other political subdivision or public corporation	3199
or the United States or any agency thereof; any agency,	3200
commission, or authority established pursuant to an interstate	3201
compact or agreement; and any combination of the above.	3202

(H) "Innovation financial assistance" means inducements	3203
under division (B) of section 166.12 of the Revised Code,	3204
innovation Ohio loan guarantees under section 166.15 of the	3205
Revised Code, and innovation Ohio loans under section 166.16 of	3206
the Revised Code.	3207

(I) "Innovation Ohio loan guarantee reserve requirement"	3208
means, at any time, with respect to innovation loan guarantees	3209
made under section 166.15 of the Revised Code, a balance in the	3210
innovation Ohio loan guarantee fund equal to the greater of twenty	3211
per cent of the then-outstanding principal amount of all	3212
outstanding innovation loan guarantees made pursuant to section	3213
166.15 of the Revised Code or fifty per cent of the principal	3214
amount of the largest outstanding guarantee made pursuant to	3215
section 166.15 of the Revised Code.	3216

(J) "Innovation property" includes property and also	3217
includes software, inventory, licenses, contract rights, goodwill,	3218
intellectual property, including without limitation, patents,	3219
patent applications, trademarks and service marks, and trade	3220
secrets, and other tangible and intangible property, and any	3221
rights and interests in or connected to the foregoing.	3222

(K) "Loan guarantee reserve requirement" means, at any	3223
time, with respect to loan guarantees made under section 166.06 of	3224
the Revised Code, a balance in the loan guarantee fund equal to	3225
the greater of twenty per cent of the then-outstanding principal	3226
amount of all outstanding guarantees made pursuant to section	3227
166.06 of the Revised Code or fifty per cent of the principal	3228
amount of the largest outstanding guarantee made pursuant to	3229
section 166.06 of the Revised Code.	3230

(F)(L) "Person" means any individual, firm, partnership,	3231
association, corporation, or governmental agency, and any	3232
combination thereof.	3233

(G)(M) "Project facilities" means buildings, structures, and	3234
other improvements, and equipment and other property, excluding	3235
small tools, supplies, and inventory, and any one, part of, or	3236
combination of the above, comprising all or part of, or serving or	3237
being incidental to, an eligible project or an eligible innovation	3238
project, including, but not limited to, public capital	3239
improvements.	3240

(H)(N) "Property" means real and personal property and	3241
interests therein.	3242

(I)(O) "Public capital improvements" means capital	3243
improvements or facilities that any governmental agency has	3244
authority to acquire, pay the costs of, own, maintain, or operate,	3245
or to contract with other persons to have the same done,	3246
including, but not limited to, highways, roads, streets, water and	3247
sewer facilities, railroad and other transportation facilities,	3248
and air and water pollution control and solid waste disposal	3249
facilities.	3250

(P) "Targeted innovation industry sectors" means industry	3251
sectors involving the production or use of advanced materials,	3252
instruments, controls and electronics, power and propulsion,	3253
biosciences, and information technology, or such other sectors as	3254
may be designated by the director of development.	3255

(J)(Q) "Voluntary action" means a voluntary action, as	3256
defined in section 3746.01 of the Revised Code, that is conducted	3257
under the voluntary action program established in Chapter 3746. of	3258
the Revised Code.	3259

(K)(R) "Project financing obligations" means obligations	3260
issued pursuant to section 166.08 of the Revised Code other than	3261
obligations for which the bond proceedings provide that bond	3262
service charges shall be paid from receipts of the state	3263
representing gross profit on the sale of spirituous liquor as	3264
referred to in division (B)(4) of section 4310.10 of the Revised	3265
Code.	3266

(L)(S) "Regional economic development entity" means an	3267
entity that is under contract with the director of development to	3268
administer a loan program under this chapter in a particular area	3269
of this state.	3270

Sec. 166.02.  (A) The general assembly finds that many local	3271
areas throughout the state are experiencing economic stagnation or	3272
decline, and that the economic development program provided for by	3273
Chapter 166.in sections 166.01 to 166.11 of the Revised Code will	3274
constitute a deserved, necessary reinvestment by the state in	3275
those areas, materially contribute to their economic	3276
revitalization, and result in improving the economic welfare of	3277
all the people of the state. Accordingly, it is declared to be the	3278
public policy of the state, through the operations under Chapter	3279
166.sections 166.01 to 166.11 of the Revised Code and other	3280
applicable laws adopted pursuant to Section 13 of Article VIII,	3281
Ohio Constitution, and other authority vested in the general	3282
assembly, to assist in and facilitate the establishment or	3283
development of eligible projects or assist and cooperate with any	3284
governmental agency in achieving such purpose.	3285

(B) In furtherance of such public policy and to implement	3286
such purpose, the director of development may:	3287

(1) After consultation with appropriate governmental	3288
agencies, enter into agreements with persons engaged in industry,	3289
commerce, distribution, or research and with governmental agencies	3290
to induce such persons to acquire, construct, reconstruct,	3291
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	3292
otherwise develop, eligible projects and make provision therein	3293
for project facilities and governmental actions, as authorized by	3294
this chapter and other applicable laws, subject to any required	3295
actions by the general assembly or the controlling board and	3296
subject to applicable local government laws and regulations;	3297

(2) Provide for the guarantees and loans as provided for in	3298
sections 166.06 and 166.07 of the Revised Code;	3299

(3) Subject to release of such moneys by the controlling	3300
board, contract for labor and materials needed for, or contract	3301
with others, including governmental agencies, to provide, project	3302
facilities the allowable costs of which are to be paid for or	3303
reimbursed from moneys in the facilities establishment fund, and	3304
contract for the operation of such project facilities;	3305

(4) Subject to release thereof by the controlling board,	3306
from moneys in the facilities establishment fund acquire or	3307
contract to acquire by gift, exchange, or purchase, including the	3308
obtaining and exercise of purchase options, property, and convey	3309
or otherwise dispose of, or provide for the conveyance or	3310
disposition of, property so acquired or contracted to be acquired	3311
by sale, exchange, lease, lease purchase, conditional or	3312
installment sale, transfer, or other disposition, including the	3313
grant of an option to purchase, to any governmental agency or to	3314
any other person without necessity for competitive bidding and	3315
upon such terms and conditions and manner of consideration	3316
pursuant to and as the director determines to be appropriate to	3317
satisfy the objectives of Chapter 166.sections 166.01 to 166.11	3318
of the Revised Code;	3319

(5) Retain the services of or employ financial consultants,	3320
appraisers, consulting engineers, superintendents, managers,	3321
construction and accounting experts, attorneys, and employees,	3322
agents, and independent contractors as are necessary in histhe	3323
director's judgment and fix the compensation for their services;	3324

(6) Receive and accept from any person grants, gifts, and	3325
contributions of money, property, labor, and other things of	3326
value, to be held, used and applied only for the purpose for which	3327
such grants, gifts, and contributions are made;	3328

(7) Enter into appropriate arrangements and agreements with	3329
any governmental agency for the taking or provision by that	3330
governmental agency of any governmental action;	3331

(8) Do all other acts and enter into contracts and execute	3332
all instruments necessary or appropriate to carry out the	3333
provisions of Chapter 166. of the Revised Code;	3334

(9) Adopt rules to implement any of the provisions of	3335
Chapter 166. of the Revised Code applicable to the director.	3336

(C) The determinations by the director that facilities	3337
constitute eligible projects, that facilities are project	3338
facilities, that costs of such facilities are allowable costs, and	3339
all other determinations relevant thereto or to an action taken or	3340
agreement entered into shall be conclusive for purposes of the	3341
validity and enforceability of rights of parties arising from	3342
actions taken and agreements entered into under this chapter.	3343

(D) Except as otherwise prescribed in Chapter 166. of the	3344
Revised Code, all expenses and obligations incurred by the	3345
director in carrying out his or herthe director's powers and in	3346
exercising his or herthe director's duties under Chapter 166. of	3347
the Revised Code, shall be payable solely from, as appropriate,	3348
moneys in the facilities establishment fund, the loan guarantee	3349
fund, the innovation Ohio loan guarantee fund, the innovation Ohio	3350
loan fund, or moneys appropriated for such purpose by the general	3351
assembly. Chapter 166. of the Revised Code does not authorize the	3352
director or the issuing authority under section 166.08 of the	3353
Revised Code to incur bonded indebtedness of the state or any	3354
political subdivision thereof, or to obligate or pledge moneys	3355
raised by taxation for the payment of any bonds or notes issued or	3356
guarantees made pursuant to Chapter 166. of the Revised Code.	3357

(E) NoExcept for financial assistance provided under	3358
sections 166.12 to 166.16 of the Revised Code, no financial	3359
assistance for project facilities shall be provided under this	3360
chapter unless the provisions of the agreement providing for such	3361
assistance specify that all wages paid to laborers and mechanics	3362
employed on such project facilities for which the assistance is	3363
granted shall be paid at the prevailing rates of wages of laborers	3364
and mechanics for the class of work called for by such project	3365
facilities, which wages shall be determined in accordance with the	3366
requirements of Chapter 4115. of the Revised Code for	3367
determination of prevailing wage rates, provided that the	3368
requirements of this division do not apply where the federal	3369
government or any of its agencies provides financing assistance as	3370
to all or any part of the funds used in connection with such	3371
project facilities and prescribes predetermined minimum wages to	3372
be paid to such laborers and mechanics; and provided further that	3373
should a nonpublic user beneficiary of the eligible project	3374
undertake, as part of the eligible project, construction to be	3375
performed by its regular bargaining unit employees who are covered	3376
under a collective bargaining agreement which was in existence	3377
prior to the date of the document authorizing such assistance	3378
then, in that event, the rate of pay provided under the collective	3379
bargaining agreement may be paid to such employees.	3380

(F) Any governmental agency may enter into an agreement with	3381
the director, any other governmental agency, or a person to be	3382
assisted under this chapter, to take or provide for the purposes	3383
of this chapter any governmental action it is authorized to take	3384
or provide, and to undertake on behalf and at the request of the	3385
director any action which the director is authorized to undertake	3386
pursuant to divisions (B)(3), (4), and (5) of this section or	3387
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	3388
Code. Governmental agencies of the state shall cooperate with and	3389
provide assistance to the director of development and the	3390
controlling board in the exercise of their respective functions	3391
under this chapter.	3392

Sec. 166.03.  (A) There is hereby created the facilities	3393
establishment fund within the state treasury, consisting of	3394
proceeds from the issuance of obligations as specified under	3395
section 166.08 of the Revised Code; the moneys received by the	3396
state from the sources specified in section 166.09 of the Revised	3397
Code; service charges imposed under sections 166.06 and 166.07 of	3398
the Revised Code; any grants, gifts, or contributions of moneys	3399
received by the director of development to be used for loans made	3400
under section 166.07 of the Revised Code or for the payment of the	3401
allowable costs of project facilities; and all other moneys	3402
appropriated or transferred to the fund. Moneys in the loan	3403
guarantee fund in excess of four per cent of the unpaid principal	3404
amount of loan repayments guaranteed under section 166.06 of the	3405
Revised Codethe loan guarantee reserve requirement, but subject	3406
to the provisions and requirements of any guarantee contracts, may	3407
be transferred to the facilities establishment fund by the	3408
treasurer of state upon the order of the director of development.	3409
Moneys received by the state under Chapter 122. of the Revised	3410
Code, to the extent allocable to the utilization of moneys derived	3411
from proceeds of the sale of obligations pursuant to section	3412
166.08 of the Revised Code, shall be credited to the facilities	3413
establishment fund.	3414

(B) All moneys appropriated or transferred to the facilities	3415
establishment fund may be released at the request of the director	3416
of development for payment of allowable costs or the making of	3417
loans under this chaptersection 166.07 of the Revised Code, for	3418
transfer to the loan guarantee fund established in section 166.06	3419
of the Revised Code, or for use for the purpose of or transfer to	3420
the funds established by sections 122.35, 122.42, 122.54, 122.55,	3421
122.56, 122.561, 122.57, 122.601, and 122.80 of the Revised Code	3422
and, until July 1, 2003, the fund established by section	3423
166.031 of the Revised Code, and, until July 1, 2007, the fund	3424
established by section 122.26 of the Revised Code, but only for	3425
such of those purposes as are within the authorization of Section	3426
13 of Article VIII, Ohio Constitution, in all cases subject to the	3427
approval of the controlling board.	3428

(C) The department of development, in the administration of	3429
the facilities establishment fund, is encouraged to utilize and	3430
promote the utilization of, to the maximum practicable extent, the	3431
other existing programs, business incentives, and tax incentives	3432
that department is required or authorized to administer or	3433
supervise.	3434

Sec. 166.04.  (A) Prior to entering into each agreement to	3435
provide assistance under this chaptersections 166.02, 166.06, and	3436
166.07 of the Revised Code, the director of development shall	3437
determine whether the assistance will conform to the requirements	3438
of Chapter 166.sections 166.01 to 166.11 of the Revised Code.	3439
Such determination, and the facts upon which it is based, shall be	3440
set forth by the director in submissions made to the controlling	3441
board for purposes of section 166.03 and, unless provision of the	3442
assistance has been recommended to the director by a regional	3443
economic development entity, to the development financing advisory	3444
council under section 166.05 of the Revised Code. An agreement to	3445
provide assistance under this chaptersections 166.02, 166.06, and	3446
166.07 of the Revised Code shall set forth such determination,	3447
which shall be conclusive for purposes of the validity and	3448
enforceability of such agreement and any loan guarantees, loans,	3449
or other agreements entered into pursuant to such agreement to	3450
provide assistance.	3451

(B) Whenever a person applies for financial assistance under	3452
this chaptersections 166.02, 166.06, and 166.07 of the Revised	3453
Code and the project for which assistance is requested is to	3454
relocate facilities that are currently being operated by the	3455
person and that are located in another county, municipal	3456
corporation, or township, the director shall provide written	3457
notification to the appropriate local governmental bodies and	3458
state officials. The notification shall contain the following	3459
information:	3460

(1) The name of the person applying for financial assistance	3461
under this chapter;	3462

(2) The county, and the municipal corporation or township,	3463
in which the project for which assistance is requested is located;	3464
and	3465

(3) The county, and the municipal corporation or township,	3466
in which the facility to be replaced is located.	3467

The director shall provide the written notification to the	3468
appropriate local governmental bodies and state officials so that	3469
they receive the notification at least five days before the	3470
development financing advisory council meeting at which the	3471
council considers the request for financial assistance pursuant to	3472
section 166.05 of the Revised Code.	3473

(C) As used in division (B) of this section:

3474

(1) "Appropriate local governmental bodies" means:

3475

(a) The boards of county commissioners or legislative	3476
authorities of the county in which the project for which	3477
assistance is requested is located and of the county in which the	3478
facility to be replaced is located;	3479

(b) The legislative authority of the municipal corporation	3480
or the board of township trustees of the township in which the	3481
project for which assistance is requested is located; and	3482

(c) The legislative authority of the municipal corporation	3483
or the board of township trustees of the township in which the	3484
facility to be replaced is located.	3485

(2) "State officials" means:

3486

(a) The state representative and state senator in whose	3487
districts the project for which assistance is requested is	3488
located;	3489

(b) The state representative and state senator in whose	3490
districts the facility to be replaced is located.	3491

Sec. 166.05.  (A) In determining the projects to be assisted	3492
and the nature, amount, and terms of assistance to be provided for	3493
an eligible project under this chaptersections 166.02, 166.06,	3494
and 166.07 of the Revised Code:	3495

(1) Except as otherwise provided in division (A)(3) of this	3496
section, the director of development shall take into consideration	3497
all of the following:	3498

(a) The number of jobs to be created or preserved, directly	3499
or indirectly;	3500

(b) Payrolls, and the taxes generated, at both state and	3501
local levels, by the eligible project and by the employment	3502
created or preserved by the eligible project;	3503

(c) The size, nature, and cost of the eligible project,	3504
including the prospect of the project for providing long-term jobs	3505
in enterprises consistent with the changing economics of the state	3506
and the nation;	3507

(d) The needs, and degree of needs, of the area in which the	3508
eligible project is to be located;	3509

(e) The needs of any private sector enterprise to be	3510
assisted;	3511

(f) The competitive effect of the assistance on other	3512
enterprises providing jobs for people of the state;	3513

(g) The amount and kind of assistance, if any, to be	3514
provided to the private sector enterprise by other governmental	3515
agencies through tax exemption or abatement, financing assistance	3516
with industrial development bonds, and otherwise, with respect to	3517
the eligible project;	3518

(h) The impact of the eligible project and its operations on	3519
local government services, including school services, and on	3520
public facilities;	3521

(i) The effect of the assistance on the loss of or damage to	3522
or destruction of prime farmland, or the removal from agricultural	3523
production of prime farmland. As used in this section, "prime	3524
farmland" means agricultural land that meets the criteria for this	3525
classification as defined by the United States soil conservation	3526
service.	3527

(j) The length of time the operator of the project has been	3528
operating facilities within the state;	3529

(k) The reservation of financial assistance made by the	3530
general assembly for small business concerns.	3531

(2) The benefits to the local area, including taxes, jobs,	3532
and reduced unemployment and reduced welfare costs, among others,	3533
may be accorded value in the leasing or sales of project	3534
facilities and in loan and guarantee arrangements.	3535

(B) Prior to granting final approval of the assistance to be	3536
provided, the director shall determine that the benefits to be	3537
derived by the state and local area from the establishment or	3538
development, and operation, of the eligible project will exceed	3539
the cost of providing such assistance and, except as provided in	3540
division (C)(2) of this section, shall submit to the development	3541
financing advisory council and to the controlling board a copy of	3542
that determination including the basis for the determination.	3543

(C)(1) Except as provided in division (C)(2) of this	3544
section, prior to the submission provided for in division (B) of	3545
this section to the controlling board, the director shall submit	3546
to the development financing advisory council data pertinent to	3547
the considerations set forth in division (A) of this section, the	3548
terms of the proposed assistance, and such other relevant	3549
information as the development financing advisory council may	3550
request.	3551

(2) The director is not required to submit any	3552
determination, data, terms, or other application materials or	3553
information to the development financing advisory council when	3554
provision of the assistance has been recommended to the director	3555
by a regional economic development entity.	3556

(D) The development financing advisory council, on the basis	3557
of such data, shall make recommendations as to the appropriateness	3558
of the assistance to be provided. The recommendations may be	3559
revised to reflect any changes in the proposed assistance as the	3560
director may submit to the council. The recommendations, as	3561
amended, of the council as to the appropriateness of the proposed	3562
assistance shall be submitted to the controlling board.	3563

(E) Financial statements and other data submitted to the	3564
director of development, the development financing advisory	3565
council, or the controlling board by any private sector person in	3566
connection with financial assistance under this chaptersections	3567
166.02, 166.06, and 166.07 of the Revised Code, or any information	3568
taken from such statements or data for any purpose, shall not be	3569
open to public inspection. The development financing advisory	3570
council in considering confidential information in connection with	3571
financial assistance under this chaptersections 166.02, 166.06,	3572
and 166.07 of the Revised Code may, only for consideration of the	3573
confidential information referred to, and in the manner provided	3574
in division (E) of section 121.22 of the Revised Code, close the	3575
meeting during such consideration.	3576

Sec. 166.06.  (A) Subject to any limitations as to aggregate	3577
amounts thereof that may from time to time be prescribed by the	3578
general assembly and to other applicable provisions of this	3579
chapter, the director of development may, on behalf of the state,	3580
enter into contracts to guarantee the repayment or payment of not	3581
more than ninety per cent of the unpaid principal amount of loans	3582
made, including bonds, notes, or other certificates issued or	3583
given to provide funds, to pay allowable costs of eligible	3584
projects. Such guarantees shall be secured solely by and payable	3585
solely from the loan guarantee fund created by this section and	3586
from theunencumbered and available moneys representing gross	3587
profits payable to the state from the sale of spirituous liquor as	3588
included in the definition of "pledged receipts" in division	3589
(A)(6) of section 166.08 of the Revised Code,in the facilities	3590
establishment fund in the manner and to the extent provided in	3591
such guarantee contracts consistent with this section. Such	3592
guarantees shall not constitute general obligations of the state	3593
or of any political subdivision, and moneys raised by taxation	3594
shall not be obligated or pledged for the payment of such	3595
guarantees.	3596

(B) Before guaranteeing any such repayments or payments the	3597
director shall determine that:	3598

(1) The project is an eligible project and is economically	3599
sound;	3600

(2) The principal amount to be guaranteed does not exceed	3601
ninety per cent of the allowable costs of the eligible project as	3602
determined by an independent engineer, architect, or appraiser	3603
engaged by the director by separate contract relating separately	3604
and solely to the particular eligible project for which the	3605
guarantee is to be made and. To assist the director in making	3606
this determination, the director may, in the director's	3607
discretion, engage an independent engineer, architect, appraiser,	3608
or other professional pursuant to a contract to be paid solely	3609
from the facilities establishment fund. Such contract shall be,	3610
subject to controlling board approval prior to making such an	3611
appraisal.	3612

(3) The principal amount to be guaranteed has a satisfactory	3613
maturity date or dates, which in no case shall be later than	3614
twenty-fivetwenty years from the effective date of the guarantee;	3615

(4) The rate of interest on the loan to be guaranteed and on	3616
any other loan made by the same parties or related persons for the	3617
eligible project is not excessive;	3618

(5) The principal obligor, or primary guarantor, is	3619
responsible and is reasonably expected to be able to meet the	3620
payments under the loan, bonds, notes, or other certificates;	3621

(6) The loan or documents pertaining to the bonds, notes, or	3622
other certificates to be guaranteed contains amortization	3623
provisions satisfactory to the director requiring periodic	3624
payments or sinking fund or similar depositsfor payment by the	3625
principal obligor, and is in such form and contains such terms and	3626
provisions for the protection of the lenders as are generally	3627
consistent with commercial practice, including, where applicable,	3628
provisions with respect to property insurance, repairs,	3629
alterations, payment of taxes and assessments, delinquency	3630
charges, default remedies, acceleration of maturity, prior,	3631
additional and secondary liens, and other matters as the director	3632
may approve.	3633

The determinations of the director shall be conclusive for	3634
purposes of the validity of a guarantee evidenced by a contract	3635
signed by the director, and such guarantee shall be incontestable	3636
as to moneys advanced under loans to which such guarantees are by	3637
their terms applicable.	3638

(C) The contract of guarantee may make provision for the	3639
conditions of, time for and manner of fulfillment of the guarantee	3640
commitment, subrogation of the state to the rights of the parties	3641
guaranteed and exercise of such parties' rights by the state,	3642
giving the state the options of making payment of the principal	3643
amount guaranteed in one or more installments and, if deferred, to	3644
pay interest thereon from the loan guarantee fund and pledged	3645
receipts described in division (A)(6) of section 166.08 of the	3646
Revised Codeand the facilities establishment fund, any other	3647
terms or conditions customary to such guarantees and as the	3648
director may approve, and may contain provisions for securing the	3649
guarantee in the manner consistent with this section, covenants on	3650
behalf of the state for the maintenance of the loan guarantee fund	3651
created by this section and of receipts to it permitted by this	3652
chapter, including covenants on behalf of the state to issue	3653
obligations under section 166.08 of the Revised Code to provide	3654
moneys to the loan guarantee fund to fulfill such guarantees and	3655
covenants authorized by division (R)(1) of section 166.08 of the	3656
Revised Code, and covenants restricting the aggregate amount of	3657
guarantees that may be contracted under this section and	3658
obligations that may be issued under section 166.08 of the Revised	3659
Code, and terms pertinent to either, to better secure the parties	3660
guaranteed.	3661

(D) The "loan guarantee fund" of the economic development	3662
program is hereby created as a special revenue fund and a trust	3663
fund which shall be in the custody of the treasurer of state but	3664
shall be separate and apart from and not a part of the state	3665
treasury to consist of all grants, gifts, and contributions of	3666
moneys or rights to moneys lawfully designated for or deposited in	3667
such fund, all moneys and rights to moneys lawfully appropriated	3668
and transferred to such fund, including moneys received from the	3669
issuance of obligations under section 166.08 of the Revised Code,	3670
and moneys deposited to such fund pursuant to division (F) of this	3671
section; provided that the loan guarantee fund shall not be	3672
comprised, in any part, of moneys raised by taxation.	3673

(E) The director may fix service charges for making a	3674
guarantee. Such charges shall be payable at such times and place	3675
and in such amounts and manner as may be prescribed by the	3676
director.	3677

(F) The treasurer of state shall serve as agent for the	3678
director in the making of deposits and withdrawals and maintenance	3679
of records pertaining to the loan guarantee fund. Prior to the	3680
director's entry into a contract providing for the making of a	3681
guarantee payable from the loan guarantee fund, the treasurer of	3682
state shall cause to be transferred from the facilities	3683
establishment fund to the loan guarantee fund an amount sufficient	3684
to make the aggregate balance therein, taking into account the	3685
proposed loan guarantee, equal to the loan guarantee reserve	3686
requirement. Thereafter, the treasurer of state shall cause the	3687
balance in the loan guarantee fund to be at least equal to the	3688
loan guarantee reserve requirement. Funds from the loan guarantee	3689
fund shall be disbursed under a guarantee made pursuant to this	3690
section to satisfy a guaranteed repayment or payment which is in	3691
default. The treasurer of state shall first withdraw and transfer	3692
moneys then on deposit in the loan guarantee fund. Whenever these	3693
moneys are inadequate to meet the requirements of a guarantee, the	3694
treasurer of state shall, without need of appropriation or further	3695
action by the director, provide for a withdrawal and transfer to	3696
the loan guarantee fund and then to the guaranteed party of moneys	3697
in such amount as is necessary to meet the guarantee, from moneys	3698
representing gross profits payable to the state from the sale of	3699
spirituous liquor as are included in the definition of "pledged	3700
receipts" in division (A)(6) of section 166.08 of the Revised Code	3701
from unencumbered and available moneys in the facilities	3702
establishment fund. Such disbursements shall be made in the	3703
manner and at the times provided in such guarantees. Within ninety	3704
days following a disbursement of moneys from the loan guarantee	3705
fund, the treasurer of state, without need of appropriation or	3706
further action by the director, shall provide for a withdrawal and	3707
transfer to the loan guarantee fund from unencumbered and	3708
available moneys in the facilities establishment fund, including	3709
moneys from the repayment of loans made from that fund, of an	3710
amount sufficient to cause the balance in the loan guarantee fund	3711
to be at least equal to the loan guarantee reserve requirement.	3712

(G) Any guaranteed parties under this section, except to the	3713
extent that their rights are restricted by the guarantee	3714
documents, may by any suitable form of legal proceedings, protect	3715
and enforce any rights under the laws of this state or granted by	3716
such guarantee or guarantee documents. Such rights include the	3717
right to compel the performance of all duties of the director and	3718
the treasurer of state required by this section or the guarantee	3719
or guarantee documents; and in the event of default with respect	3720
to the payment of any guarantees, to apply to a court having	3721
jurisdiction of the cause to appoint a receiver to receive and	3722
administer the moneys pledged to such guarantee with full power to	3723
pay, and to provide for payment of, such guarantee, and with such	3724
powers, subject to the direction of the court, as are accorded	3725
receivers in general equity cases, excluding any power to pledge	3726
or apply additional revenues or receipts or other income or moneys	3727
of the state or governmental agencies of the state to the payment	3728
of such guarantee. Each duty of the director and the treasurer of	3729
state and their officers and employees, and of each governmental	3730
agency and its officers, members, or employees, required or	3731
undertaken pursuant to this section or a guarantee made under	3732
authority of this section, is hereby established as a duty of the	3733
director and the treasurer of state, and of each such officer,	3734
member, or employee having authority to perform such duty,	3735
specifically enjoined by the law resulting from andan office,	3736
trust, or station within the meaning of section 2731.01 of the	3737
Revised Code. The persons who are at the time the director and	3738
treasurer of state, or their officers or employees, are not liable	3739
in their personal capacities on any guarantees or contracts to	3740
make guarantees by the director.	3741

(H) The determinations of the director under divisions (B)	3742
and (C) of this section shall be conclusive for purposes of the	3743
validity of a guarantee evidenced by a contract signed by the	3744
director, and such guarantee shall be incontestable as to moneys	3745
advanced under loans to which such guarantees are by their terms	3746
applicable.	3747

Sec. 166.07.  (A) The director of development, with the	3748
approval of the controlling board and subject to the other	3749
applicable provisions of this chapter, may lend moneys in the	3750
facilities establishment fund to persons for the purpose of paying	3751
allowable costs of an eligible project if the director determines	3752
that:	3753

(1) The project is an eligible project and is economically	3754
sound;	3755

(2) The borrower is unable to finance the necessary	3756
allowable costs through ordinary financial channels upon	3757
comparable terms;	3758

(3) The amount to be lent from the facilities establishment	3759
fund will not exceed seventy-five per cent of the total allowable	3760
costs of the eligible project, except that if any part of the	3761
entire amount to be lent from the facilities establishment fund is	3762
derived from the issuance and sale of project financing	3763
obligations the amount to be lent will not exceed ninety per cent	3764
of the total allowable costs of the eligible project;	3765

(4) The eligible project could not be achieved in the local	3766
area in which it is to be located if the portion of the project to	3767
be financed by the loan instead were to be financed by a loan	3768
guaranteed under section 166.06 of the Revised Code;	3769

(5) The amountrepayment of the loan from the facilities	3770
establishment fund to be repaid will be adequately secured by a	3771
mortgage, lien, assignment, or pledge, at such level of priority	3772
as the director may require;	3773

(6) The borrower will hold at least a ten per cent equity	3774
interest in the eligible project at the time the loan is made.	3775

(B) The determinations of the director under division (A) of	3776
this section shall be conclusive for purposes of the validity of a	3777
loan commitment evidenced by a loan agreement signed by the	3778
director.	3779

(C) Fees, charges, rates of interest, times of payment of	3780
interest and principal, and other terms, conditions, and	3781
provisions of and security for loans made from the facilities	3782
establishment fund pursuant to this section shall be such as the	3783
director determines to be appropriate and in furtherance of the	3784
purpose for which the loans are made. The moneys used in making	3785
such loans shall be disbursed from the facilities establishment	3786
fund upon order of the director. The director shall give special	3787
consideration in setting the required job creation ratios and	3788
interest rates for loans that are for voluntary actions.	3789

(D) The director may take actions necessary or appropriate	3790
to collect or otherwise deal with any loan made under this	3791
section.	3792

(E) The director may fix service charges for the making of a	3793
loan. Such charges shall be payable at such times and place and	3794
in such amounts and manner as may be prescribed by the director.	3795

Sec. 166.08.  (A) As used in this chapter:

3796

(1) "Bond proceedings" means the resolution, order, trust	3797
agreement, indenture, lease, and other agreements, amendments and	3798
supplements to the foregoing, or any one or more or combination	3799
thereof, authorizing or providing for the terms and conditions	3800
applicable to, or providing for the security or liquidity of,	3801
obligations issued pursuant to this section, and the provisions	3802
contained in such obligations.	3803

(2) "Bond service charges" means principal, including	3804
mandatory sinking fund requirements for retirement of obligations,	3805
and interest, and redemption premium, if any, required to be paid	3806
by the state on obligations.	3807

(3) "Bond service fund" means the applicable fund and	3808
accounts therein created for and pledged to the payment of bond	3809
service charges, which may be, or may be part of, the economic	3810
development bond service fund created by division (S) of this	3811
section including all moneys and investments, and earnings from	3812
investments, credited and to be credited thereto.	3813

(4) "Issuing authority" means the treasurer of state, or the	3814
officer who by law performs the functions of such officer.	3815

(5) "Obligations" means bonds, notes, or other evidence of	3816
obligation including interest coupons pertaining thereto, issued	3817
pursuant to this section.	3818

(6) "Pledged receipts" means all receipts of the state	3819
representing the gross profit on the sale of spirituous liquor, as	3820
referred to in division (B)(4) of section 4301.10 of the Revised	3821
Code, after paying all costs and expenses of the division of	3822
liquor control and providing an adequate working capital reserve	3823
for the division of liquor control as provided in that division,	3824
but excluding the sum required by the second paragraph of section	3825
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	3826
paid into the state treasury; moneys accruing to the state from	3827
the lease, sale, or other disposition, or use, of project	3828
facilities, and from the repayment, including interest, of loans	3829
made from proceeds received from the sale of obligations; accrued	3830
interest received from the sale of obligations; income from the	3831
investment of the special funds; and any gifts, grants, donations,	3832
and pledges, and receipts therefrom, available for the payment of	3833
bond service charges.	3834

(7) "Special funds" or "funds" means, except where the	3835
context does not permit, the bond service fund, and any other	3836
funds, including reserve funds, created under the bond	3837
proceedings, and the economic development bond service fund	3838
created by division (S) of this section to the extent provided in	3839
the bond proceedings, including all moneys and investments, and	3840
earnings from investment, credited and to be credited thereto.	3841

(B) Subject to the limitations provided in section 166.11 of	3842
the Revised Code, the issuing authority, upon the certification by	3843
the director of development to the issuing authority of the amount	3844
of moneys or additional moneys needed in the facilities	3845
establishment fund or, the loan guarantee fund, the innovation	3846
Ohio loan fund, or the innovation Ohio loan guarantee fund for	3847
the purpose of paying, or making loans for, allowable costs from	3848
the facilities establishment fund or allowable innovation costs	3849
from the innovation Ohio loan fund, or needed for capitalized	3850
interest, for funding reserves, and for paying costs and expenses	3851
incurred in connection with the issuance, carrying, securing,	3852
paying, redeeming, or retirement of the obligations or any	3853
obligations refunded thereby, including payment of costs and	3854
expenses relating to letters of credit, lines of credit,	3855
insurance, put agreements, standby purchase agreements, indexing,	3856
marketing, remarketing and administrative arrangements, interest	3857
swap or hedging agreements, and any other credit enhancement,	3858
liquidity, remarketing, renewal, or refunding arrangements, all of	3859
which are authorized by this section, or providing moneys for the	3860
loan guarantee fund or the innovation Ohio loan guarantee fund, as	3861
provided in this chapter or needed for the purposes of funds	3862
established in accordance with or pursuant to sections 122.35,	3863
122.42, 122.54, 122.55, 122.56, 122.561, 122.57, and 122.80 of the	3864
Revised Code which are within the authorization of Section 13 of	3865
Article VIII, Ohio Constitution, shall issue obligations of the	3866
state under this section in the required amount; provided that	3867
such obligations may be issued to the extent necessary to satisfy	3868
the covenants in contracts of guarantee made under section 166.06	3869
or 166.15 of the Revised Code to issue obligations to meet such	3870
guarantees, notwithstanding limitations otherwise applicable to	3871
the issuance of obligations under this section. The proceeds of	3872
such obligations, except for the portion to be deposited in	3873
special funds, including reserve funds, as may be provided in the	3874
bond proceedings, shall as provided in the bond proceedings be	3875
deposited by the director of development to the facilities	3876
establishment fund or, the loan guarantee fund established by	3877
section 166.06 of the Revised Code, the innovation Ohio loan	3878
guarantee fund, or the innovation Ohio loan fund. Bond	3879
proceedings for project financing obligations may provide that the	3880
proceeds derived from the issuance of such obligations shall be	3881
deposited into such fund or funds provided for in the bond	3882
proceedings and, to the extent provided for in the bond	3883
proceedings, such proceeds shall be deemed to have been deposited	3884
into the facilities establishment fund and transferred to such	3885
fund or funds. The issuing authority may appoint trustees, paying	3886
agents, and transfer agents and may retain the services of	3887
financial advisors, accounting experts, and attorneys, and retain	3888
or contract for the services of marketing, remarketing, indexing,	3889
and administrative agents, other consultants, and independent	3890
contractors, including printing services, as are necessary in the	3891
issuing authority's judgment to carry out this section. The costs	3892
of such services are allowable costs payable from the facilities	3893
establishment fund or allowable innovation costs payable from the	3894
innovation Ohio loan fund.	3895

(C) The holders or owners of such obligations shall have no	3896
right to have moneys raised by taxation obligated or pledged, and	3897
moneys raised by taxation shall not be obligated or pledged, for	3898
the payment of bond service charges. Such holders or owners shall	3899
have no rights to payment of bond service charges from any moneys	3900
accruing to the state from the lease, sale, or other disposition,	3901
or use, of project facilities, or from payment of the principal of	3902
or interest on loans made, or fees charged for guarantees made, or	3903
from any money or property received by the director, treasurer of	3904
state, or the state under Chapter 122. of the Revised Code, or	3905
from any other use of the proceeds of the sale of the obligations,	3906
and no such moneys may be used for the payment of bond service	3907
charges, except for accrued interest, capitalized interest, and	3908
reserves funded from proceeds received upon the sale of the	3909
obligations and except as otherwise expressly provided in the	3910
applicable bond proceedings pursuant to written directions by the	3911
director. The right of such holders and owners to payment of bond	3912
service charges is limited to all or that portion of the pledged	3913
receipts and those special funds pledged thereto pursuant to the	3914
bond proceedings in accordance with this section, and each such	3915
obligation shall bear on its face a statement to that effect.	3916

(D) Obligations shall be authorized by resolution or order	3917
of the issuing authority and the bond proceedings shall provide	3918
for the purpose thereof and the principal amount or amounts, and	3919
shall provide for or authorize the manner or agency for	3920
determining the principal maturity or maturities, not exceeding	3921
twenty-five years from the date of issuance, the interest rate or	3922
rates or the maximum interest rate, the date of the obligations	3923
and the dates of payment of interest thereon, their denomination,	3924
and the establishment within or without the state of a place or	3925
places of payment of bond service charges. Sections 9.98 to 9.983	3926
of the Revised Code are applicable to obligations issued under	3927
this section, subject to any applicable limitation under section	3928
166.11 of the Revised Code. The purpose of such obligations may	3929
be stated in the bond proceedings in terms describing the general	3930
purpose or purposes to be served. The bond proceedings also shall	3931
provide, subject to the provisions of any other applicable bond	3932
proceedings, for the pledge of all, or such part as the issuing	3933
authority may determine, of the pledged receipts and the	3934
applicable special fund or funds to the payment of bond service	3935
charges, which pledges may be made either prior or subordinate to	3936
other expenses, claims, or payments, and may be made to secure the	3937
obligations on a parity with obligations theretofore or thereafter	3938
issued, if and to the extent provided in the bond proceedings. The	3939
pledged receipts and special funds so pledged and thereafter	3940
received by the state are immediately subject to the lien of such	3941
pledge without any physical delivery thereof or further act, and	3942
the lien of any such pledges is valid and binding against all	3943
parties having claims of any kind against the state or any	3944
governmental agency of the state, irrespective of whether such	3945
parties have notice thereof, and shall create a perfected security	3946
interest for all purposes of Chapter 1309. of the Revised Code,	3947
without the necessity for separation or delivery of funds or for	3948
the filing or recording of the bond proceedings by which such	3949
pledge is created or any certificate, statement or other document	3950
with respect thereto; and the pledge of such pledged receipts and	3951
special funds is effective and the money therefrom and thereof may	3952
be applied to the purposes for which pledged without necessity for	3953
any act of appropriation. Every pledge, and every covenant and	3954
agreement made with respect thereto, made in the bond proceedings	3955
may therein be extended to the benefit of the owners and holders	3956
of obligations authorized by this section, and to any trustee	3957
therefor, for the further security of the payment of the bond	3958
service charges.	3959

(E) The bond proceedings may contain additional provisions	3960
as to:	3961

(1) The redemption of obligations prior to maturity at the	3962
option of the issuing authority at such price or prices and under	3963
such terms and conditions as are provided in the bond proceedings;	3964

(2) Other terms of the obligations;

3965

(3) Limitations on the issuance of additional obligations;

3966

(4) The terms of any trust agreement or indenture securing	3967
the obligations or under which the same may be issued;	3968

(5) The deposit, investment and application of special	3969
funds, and the safeguarding of moneys on hand or on deposit,	3970
without regard to Chapter 131. or 135. of the Revised Code, but	3971
subject to any special provisions of this chapter, with respect to	3972
particular funds or moneys, provided that any bank or trust	3973
company which acts as depository of any moneys in the special	3974
funds may furnish such indemnifying bonds or may pledge such	3975
securities as required by the issuing authority;	3976

(6) Any or every provision of the bond proceedings being	3977
binding upon such officer, board, commission, authority, agency,	3978
department, or other person or body as may from time to time have	3979
the authority under law to take such actions as may be necessary	3980
to perform all or any part of the duty required by such provision;	3981

(7) Any provision that may be made in a trust agreement or	3982
indenture;	3983

(8) Any other or additional agreements with the holders of	3984
the obligations, or the trustee therefor, relating to the	3985
obligations or the security therefor, including the assignment of	3986
mortgages or other security obtained or to be obtained for loans	3987
under section 122.43 or, 166.07, or 166.16 of the Revised Code.	3988

(F) The obligations may have the great seal of the state or	3989
a facsimile thereof affixed thereto or printed thereon. The	3990
obligations and any coupons pertaining to obligations shall be	3991
signed or bear the facsimile signature of the issuing authority.	3992
Any obligations or coupons may be executed by the person who, on	3993
the date of execution, is the proper issuing authority although on	3994
the date of such bonds or coupons such person was not the issuing	3995
authority. If the issuing authority whose signature or a	3996
facsimile of whose signature appears on any such obligation or	3997
coupon ceases to be the issuing authority before delivery thereof,	3998
such signature or facsimile is nevertheless valid and sufficient	3999
for all purposes as if the former issuing authority had remained	4000
the issuing authority until such delivery; and if the seal to be	4001
affixed to obligations has been changed after a facsimile of the	4002
seal has been imprinted on such obligations, such facsimile seal	4003
shall continue to be sufficient as to such obligations and	4004
obligations issued in substitution or exchange therefor.	4005

(G) All obligations are negotiable instruments and	4006
securities under Chapter 1308. of the Revised Code, subject to the	4007
provisions of the bond proceedings as to registration. The	4008
obligations may be issued in coupon or in registered form, or	4009
both, as the issuing authority determines. Provision may be made	4010
for the registration of any obligations with coupons attached	4011
thereto as to principal alone or as to both principal and	4012
interest, their exchange for obligations so registered, and for	4013
the conversion or reconversion into obligations with coupons	4014
attached thereto of any obligations registered as to both	4015
principal and interest, and for reasonable charges for such	4016
registration, exchange, conversion, and reconversion.	4017

(H) Obligations may be sold at public sale or at private	4018
sale, as determined in the bond proceedings.	4019

Obligations issued to provide moneys for the loan guarantee	4020
fund or the innovation Ohio loan guarantee fund may, as determined	4021
by the issuing authority, be sold at private sale, and without	4022
publication of a notice of sale.	4023

(I) Pending preparation of definitive obligations, the	4024
issuing authority may issue interim receipts or certificates which	4025
shall be exchanged for such definitive obligations.	4026

(J) In the discretion of the issuing authority, obligations	4027
may be secured additionally by a trust agreement or indenture	4028
between the issuing authority and a corporate trustee which may be	4029
any trust company or bank having its principal place of business	4030
within the state. Any such agreement or indenture may contain the	4031
resolution or order authorizing the issuance of the obligations,	4032
any provisions that may be contained in any bond proceedings, and	4033
other provisions which are customary or appropriate in an	4034
agreement or indenture of such type, including, but not limited	4035
to:	4036

(1) Maintenance of each pledge, trust agreement, indenture,	4037
or other instrument comprising part of the bond proceedings until	4038
the state has fully paid the bond service charges on the	4039
obligations secured thereby, or provision therefor has been made;	4040

(2) In the event of default in any payments required to be	4041
made by the bond proceedings, or any other agreement of the	4042
issuing authority made as a part of the contract under which the	4043
obligations were issued, enforcement of such payments or agreement	4044
by mandamus, the appointment of a receiver, suit in equity, action	4045
at law, or any combination of the foregoing;	4046

(3) The rights and remedies of the holders of obligations	4047
and of the trustee, and provisions for protecting and enforcing	4048
them, including limitations on rights of individual holders of	4049
obligations;	4050

(4) The replacement of any obligations that become mutilated	4051
or are destroyed, lost, or stolen;	4052

(5) Such other provisions as the trustee and the issuing	4053
authority agree upon, including limitations, conditions, or	4054
qualifications relating to any of the foregoing.	4055

(K) Any holders of obligations or trustees under the bond	4056
proceedings, except to the extent that their rights are restricted	4057
by the bond proceedings, may by any suitable form of legal	4058
proceedings, protect and enforce any rights under the laws of this	4059
state or granted by such bond proceedings. Such rights include	4060
the right to compel the performance of all duties of the issuing	4061
authority, the director of development, or the division of liquor	4062
control required by this chapter or the bond proceedings; to	4063
enjoin unlawful activities; and in the event of default with	4064
respect to the payment of any bond service charges on any	4065
obligations or in the performance of any covenant or agreement on	4066
the part of the issuing authority, the director of development, or	4067
the division of liquor control in the bond proceedings, to apply	4068
to a court having jurisdiction of the cause to appoint a receiver	4069
to receive and administer the pledged receipts and special funds,	4070
other than those in the custody of the treasurer of state, which	4071
are pledged to the payment of the bond service charges on such	4072
obligations or which are the subject of the covenant or agreement,	4073
with full power to pay, and to provide for payment of bond service	4074
charges on, such obligations, and with such powers, subject to the	4075
direction of the court, as are accorded receivers in general	4076
equity cases, excluding any power to pledge additional revenues or	4077
receipts or other income or moneys of the issuing authority or the	4078
state or governmental agencies of the state to the payment of such	4079
principal and interest and excluding the power to take possession	4080
of, mortgage, or cause the sale or otherwise dispose of any	4081
project facilities.	4082

Each duty of the issuing authority and the issuing	4083
authority's officers and employees, and of each governmental	4084
agency and its officers, members, or employees, undertaken	4085
pursuant to the bond proceedings or any agreement or lease,	4086
lease-purchase agreement, or loan made under authority of this	4087
chapter, and in every agreement by or with the issuing authority,	4088
is hereby established as a duty of the issuing authority, and of	4089
each such officer, member, or employee having authority to perform	4090
such duty, specifically enjoined by the law resulting from an	4091
office, trust, or station within the meaning of section 2731.01 of	4092
the Revised Code.	4093

The person who is at the time the issuing authority, or the	4094
issuing authority's officers or employees, are not liable in their	4095
personal capacities on any obligations issued by the issuing	4096
authority or any agreements of or with the issuing authority.	4097

(L) The issuing authority may authorize and issue	4098
obligations for the refunding, including funding and retirement,	4099
and advance refunding with or without payment or redemption prior	4100
to maturity, of any obligations previously issued by the issuing	4101
authority. Such obligations may be issued in amounts sufficient	4102
for payment of the principal amount of the prior obligations, any	4103
redemption premiums thereon, principal maturities of any such	4104
obligations maturing prior to the redemption of the remaining	4105
obligations on a parity therewith, interest accrued or to accrue	4106
to the maturity dates or dates of redemption of such obligations,	4107
and any allowable costs including expenses incurred or to be	4108
incurred in connection with such issuance and such refunding,	4109
funding, and retirement. Subject to the bond proceedings	4110
therefor, the portion of proceeds of the sale of obligations	4111
issued under this division to be applied to bond service charges	4112
on the prior obligations shall be credited to an appropriate	4113
account held by the trustee for such prior or new obligations or	4114
to the appropriate account in the bond service fund for such	4115
obligations. Obligations authorized under this division shall be	4116
deemed to be issued for those purposes for which such prior	4117
obligations were issued and are subject to the provisions of this	4118
section pertaining to other obligations, except as otherwise	4119
provided in this section; provided that, unless otherwise	4120
authorized by the general assembly, any limitations imposed by the	4121
general assembly pursuant to this section with respect to bond	4122
service charges applicable to the prior obligations shall be	4123
applicable to the obligations issued under this division to	4124
refund, fund, advance refund or retire such prior obligations.	4125

(M) The authority to issue obligations under this section	4126
includes authority to issue obligations in the form of bond	4127
anticipation notes and to renew the same from time to time by the	4128
issuance of new notes. The holders of such notes or interest	4129
coupons pertaining thereto shall have a right to be paid solely	4130
from the pledged receipts and special funds that may be pledged to	4131
the payment of the bonds anticipated, or from the proceeds of such	4132
bonds or renewal notes, or both, as the issuing authority provides	4133
in the resolution or order authorizing such notes. Such notes may	4134
be additionally secured by covenants of the issuing authority to	4135
the effect that the issuing authority and the state will do such	4136
or all things necessary for the issuance of such bonds or renewal	4137
notes in appropriate amount, and apply the proceeds thereof to the	4138
extent necessary, to make full payment of the principal of and	4139
interest on such notes at the time or times contemplated, as	4140
provided in such resolution or order. For such purpose, the	4141
issuing authority may issue bonds or renewal notes in such	4142
principal amount and upon such terms as may be necessary to	4143
provide funds to pay when required the principal of and interest	4144
on such notes, notwithstanding any limitations prescribed by or	4145
for purposes of this section. Subject to this division, all	4146
provisions for and references to obligations in this section are	4147
applicable to notes authorized under this division.	4148

The issuing authority in the bond proceedings authorizing the	4149
issuance of bond anticipation notes shall set forth for such bonds	4150
an estimated interest rate and a schedule of principal payments	4151
for such bonds and the annual maturity dates thereof, and for	4152
purposes of any limitation on bond service charges prescribed	4153
under division (A) of section 166.11 of the Revised Code, the	4154
amount of bond service charges on such bond anticipation notes is	4155
deemed to be the bond service charges for the bonds anticipated	4156
thereby as set forth in the bond proceedings applicable to such	4157
notes, but this provision does not modify any authority in this	4158
section to pledge receipts and special funds to, and covenant to	4159
issue bonds to fund, the payment of principal of and interest and	4160
any premium on such notes.	4161

(N) Obligations issued under this section are lawful	4162
investments for banks, societies for savings, savings and loan	4163
associations, deposit guarantee associations, trust companies,	4164
trustees, fiduciaries, insurance companies, including domestic for	4165
life and domestic not for life, trustees or other officers having	4166
charge of sinking and bond retirement or other special funds of	4167
political subdivisions and taxing districts of this state, the	4168
commissioners of the sinking fund of the state, the administrator	4169
of workers' compensation, the state teachers retirement system,	4170
the public employees retirement system, the school employees	4171
retirement system, and the Ohio police and fire pension fund,	4172
notwithstanding any other provisions of the Revised Code or rules	4173
adopted pursuant thereto by any governmental agency of the state	4174
with respect to investments by them, and are also acceptable as	4175
security for the deposit of public moneys.	4176

(O) Unless otherwise provided in any applicable bond	4177
proceedings, moneys to the credit of or in the special funds	4178
established by or pursuant to this section may be invested by or	4179
on behalf of the issuing authority only in notes, bonds, or other	4180
obligations of the United States, or of any agency or	4181
instrumentality of the United States, obligations guaranteed as to	4182
principal and interest by the United States, obligations of this	4183
state or any political subdivision of this state, and certificates	4184
of deposit of any national bank located in this state and any	4185
bank, as defined in section 1101.01 of the Revised Code, subject	4186
to inspection by the superintendent of banks. If the law or the	4187
instrument creating a trust pursuant to division (J) of this	4188
section expressly permits investment in direct obligations of the	4189
United States or an agency of the United States, unless expressly	4190
prohibited by the instrument, such moneys also may be invested in	4191
no-front-end-load money market mutual funds consisting exclusively	4192
of obligations of the United States or an agency of the United	4193
States and in repurchase agreements, including those issued by the	4194
fiduciary itself, secured by obligations of the United States or	4195
an agency of the United States; and in common trust funds	4196
established in accordance with section 1111.20 of the Revised Code	4197
and consisting exclusively of any such securities, notwithstanding	4198
division (A)(4) of that section. The income from such investments	4199
shall be credited to such funds as the issuing authority	4200
determines, and such investments may be sold at such times as the	4201
issuing authority determines or authorizes.	4202

(P) Provision may be made in the applicable bond proceedings	4203
for the establishment of separate accounts in the bond service	4204
fund and for the application of such accounts only to the	4205
specified bond service charges on obligations pertinent to such	4206
accounts and bond service fund and for other accounts therein	4207
within the general purposes of such fund. Unless otherwise	4208
provided in any applicable bond proceedings, moneys to the credit	4209
of or in the several special funds established pursuant to this	4210
section shall be disbursed on the order of the treasurer of state,	4211
provided that no such order is required for the payment from the	4212
bond service fund when due of bond service charges on obligations.	4213

(Q) The issuing authority may pledge all, or such portion as	4214
the issuing authority determines, of the pledged receipts to the	4215
payment of bond service charges on obligations issued under this	4216
section, and for the establishment and maintenance of any	4217
reserves, as provided in the bond proceedings, and make other	4218
provisions therein with respect to pledged receipts as authorized	4219
by this chapter, which provisions are controlling notwithstanding	4220
any other provisions of law pertaining thereto.	4221

(R) The issuing authority may covenant in the bond	4222
proceedings, and any such covenants are controlling	4223
notwithstanding any other provision of law, that the state and	4224
applicable officers and governmental agencies of the state,	4225
including the general assembly, so long as any obligations are	4226
outstanding, shall:	4227

(1) Maintain statutory authority for and cause to be charged	4228
and collected wholesale and retail prices for spirituous liquor	4229
sold by the state or its agents so that the pledged receipts are	4230
sufficient in amount to meet bond service charges, and the	4231
establishment and maintenance of any reserves and other	4232
requirements provided for in the bond proceedings, and, as	4233
necessary, to meet covenants contained in contracts of guarantee	4234
made under section 166.06 of the Revised Code;	4235

(2) Take or permit no action, by statute or otherwise, that	4236
would impair the exemption from federal income taxation of the	4237
interest on the obligations.	4238

(S) There is hereby created the economic development bond	4239
service fund, which shall be in the custody of the treasurer of	4240
state but shall be separate and apart from and not a part of the	4241
state treasury. All moneys received by or on account of the	4242
issuing authority or state agencies and required by the applicable	4243
bond proceedings, consistent with this section, to be deposited,	4244
transferred, or credited to a bond service fund or the economic	4245
development bond service fund, and all other moneys transferred or	4246
allocated to or received for the purposes of the fund, shall be	4247
deposited and credited to such fund and to any separate accounts	4248
therein, subject to applicable provisions of the bond proceedings,	4249
but without necessity for any act of appropriation. During the	4250
period beginning with the date of the first issuance of	4251
obligations and continuing during such time as any such	4252
obligations are outstanding, and so long as moneys in the	4253
pertinent bond service funds are insufficient to pay all bond	4254
services charges on such obligations becoming due in each year, a	4255
sufficient amount of the gross profit on the sale of spirituous	4256
liquor included in pledged receipts are committed and shall be	4257
paid to the bond service fund or economic development bond service	4258
fund in each year for the purpose of paying the bond service	4259
charges becoming due in that year without necessity for further	4260
act of appropriation for such purpose and notwithstanding anything	4261
to the contrary in Chapter 4301. of the Revised Code. The	4262
economic development bond service fund is a trust fund and is	4263
hereby pledged to the payment of bond service charges to the	4264
extent provided in the applicable bond proceedings, and payment	4265
thereof from such fund shall be made or provided for by the	4266
treasurer of state in accordance with such bond proceedings	4267
without necessity for any act of appropriation.	4268

(T) The obligations, the transfer thereof, and the income	4269
therefrom, including any profit made on the sale thereof, shall at	4270
all times be free from taxation within the state.	4271

Sec. 166.11.  (A) The aggregate principal amount of project	4272
financing obligations that may be issued under section 166.08 of	4273
the Revised Code is three hundred million dollars, plus the	4274
principal amount of such project financing obligations retired by	4275
payments. The aggregate principal amount of obligations,	4276
exclusive of project financing obligations, that may be issued	4277
under section 166.08 of the Revised Code is three hundred million	4278
dollars, plus the principal amount of any such obligations retired	4279
by payment, the amounts held or obligations pledged for the	4280
payment of the principal amount of any such obligations	4281
outstanding, amounts in special funds held as reserves to meet	4282
bond service charges, and amounts of obligations issued to provide	4283
moneys required to meet payments from the loan guarantee fund	4284
created in section 166.06 of the Revised Code and the innovation	4285
Ohio loan guarantee fund created in section 166.15 of the Revised	4286
Code, and minus the amount if any by which four per cent of the	4287
unpaid principal amount of loan repayments guaranteed under	4288
section 166.06 of the Revised Code exceeds the amount in the loan	4289
guarantee fund. The terms of the obligations issued under section	4290
166.08 of the Revised Code, other than obligations issued to meet	4291
guarantees that cannot be satisfied from amounts then held in the	4292
loan guarantee fund, shall be such that the aggregate amount of	4293
moneys used from profit from the sale of spirituous liquor, and	4294
not from other sources, in any fiscal year shall not exceed	4295
twenty-five million dollars. For purposes of the preceding	4296
sentence, "other sources" include the annual investment income on	4297
special funds to the extent it will be available for payment of	4298
any bond service charges in lieu of use of profit from the sale of	4299
spirituous liquor, and shall be estimated on the basis of the	4300
expected funding of those special funds and assumed investment	4301
earnings thereon at a rate equal to the weighted average yield on	4302
investments of those special funds determined as of any date	4303
within sixty days immediately preceding the date of issuance of	4304
the bonds in respect of which the determination is being made. The	4305
determinations required by this division shall be made by the	4306
treasurer of state at the time of issuance of an issue of	4307
obligations and shall be conclusive for purposes of such issue of	4308
obligations from and after their issuance and delivery.	4309

(B) The aggregate amount of the guaranteed portion of the	4310
unpaid principal of loans guaranteed under sectionsections 166.06	4311
and 166.15 of the Revised Code and the unpaid principal of loans	4312
made under sectionsections 166.07 and 166.16 of the Revised Code	4313
may not at any time exceed fiveseven hundred million dollars. Of	4314
that seven hundred million dollars, the aggregate amount of the	4315
guaranteed portion of the unpaid principal of loans guaranteed	4316
under sections 166.06 and 166.15 of the Revised Code shall not at	4317
any time exceed two hundred million dollars. However, this	4318
limitation doesthe limitations established under this division do	4319
not apply to loans made with proceeds from the issuance and sale	4320
of project financing obligations.	4321

(C) At least fifty per cent of the original amounts	4322
authorized by division (B) of this section shall be reserved for	4323
and applied to assist small business concerns that have not more	4324
than four hundred employees, not including new employment to be	4325
generated by the eligible project to be assisted under this	4326
chapter, but this requirement does not limit the portion of such	4327
amounts which may be applied to assist such small business	4328
concerns.	4329

Sec. 166.12.  (A) The general assembly finds that in order	4330
to maintain and enhance the competitiveness of the Ohio economy	4331
and to improve the economic welfare of all of the people of the	4332
state, it is necessary to ensure that high-value jobs based on	4333
research, technology, and innovation will be available to the	4334
people of this state. Further, the general assembly finds that	4335
the attraction of such jobs and their presence in this state will	4336
materially contribute to the economic welfare of all of the people	4337
of the state. Accordingly, it is declared to be the public policy	4338
of this state, through the operations under sections 166.01 and	4339
166.12 to 166.16 of the Revised Code, and the loan and loan	4340
guarantee provisions contained in those sections, applicable laws	4341
adopted pursuant to Section 13 of Article VIII, Ohio Constitution,	4342
and other authority vested in the general assembly, to assist in	4343
and facilitate the establishment or development of eligible	4344
innovation projects or assist and cooperate with any governmental	4345
agency in achieving that purpose.	4346

(B) In furtherance of that public policy and to implement	4347
that purpose, the director of development may:	4348

(1) After consultation with appropriate governmental	4349
agencies, enter into agreements with persons engaged in industry,	4350
commerce, distribution, or research and with governmental agencies	4351
to induce such persons to acquire, construct, reconstruct,	4352
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	4353
otherwise develop, eligible innovation projects and make provision	4354
therein for project facilities and governmental actions, as	4355
authorized by sections 166.01 and 166.12 to 166.16 of the Revised	4356
Code and other applicable laws;	4357

(2) Provide for innovation Ohio loan guarantees and loans	4358
under sections 166.15 and 166.16 of the Revised Code;	4359

(3) Subject to the release of such moneys by the	4360
controlling board, contract for labor and materials needed for, or	4361
contract with others, including governmental agencies, to provide,	4362
eligible innovation projects the allowable innovation costs of	4363
which are to be paid for or reimbursed from moneys in the	4364
innovation Ohio loan fund, and contract for the operation of such	4365
eligible innovation projects;	4366

(4) Subject to release thereof by the controlling board,	4367
from moneys in the innovation Ohio loan fund, acquire or contract	4368
to acquire by gift, exchange, or purchase, including the obtaining	4369
and exercise of purchase options, innovation property, and convey	4370
or otherwise dispose of, or provide for the conveyance or	4371
disposition of, innovation property so acquired or contracted to	4372
be acquired by sale, exchange, lease, lease purchase, conditional	4373
or installment sale, transfer, or other disposition, including the	4374
grant of an option to purchase, to any governmental agency or to	4375
any other person without necessity for competitive bidding and	4376
upon such terms and conditions and manner of consideration	4377
pursuant to, and as the director determines to be appropriate to	4378
satisfy the objectives of, Chapter 166. of the Revised Code;	4379

(5) Retain the services of or employ financial consultants,	4380
appraisers, consulting engineers, superintendents, managers,	4381
construction and accounting experts, attorneys, and employees,	4382
agents, and independent contractors as are necessary in the	4383
director's judgment and fix the compensation for their services;	4384

(6) Receive and accept from any person grants, gifts, and	4385
contributions of money, property, labor, and other things of	4386
value, to be held, used, and applied only for the purpose for	4387
which such grants, gifts, and contributions are made;	4388

(7) Enter into appropriate arrangements and agreements with	4389
any governmental agency for the taking or provision by that	4390
governmental agency of any governmental action with respect to	4391
innovation projects;	4392

(8) Do all other acts and enter into contracts and execute	4393
all instruments necessary or appropriate to carry out the	4394
provisions of sections 166.01 and 166.12 to 166.16 of the Revised	4395
Code;	4396

(9) With respect to property, including but not limited to	4397
innovation property, take such interests, including but not	4398
limited to mortgages, security interests, assignments, and	4399
exclusive or non-exclusive licenses, as may be necessary or	4400
appropriate under the circumstances, to ensure that innovation	4401
property is used within this state and that products or services	4402
associated with that innovation property are produced or, in the	4403
case of services, delivered, by persons employed within this	4404
state;	4405

(10) Adopt rules necessary to implement any of the	4406
provisions of sections 166.01 and 166.12 to 166.16 of the Revised	4407
Code applicable to the director.	4408

(C) The determinations by the director that facilities or	4409
property constitute eligible innovation projects and that costs of	4410
such facilities or property are allowable innovation costs, and	4411
all other determinations relevant thereto or to an action taken or	4412
agreement entered into, shall be conclusive for purposes of the	4413
validity and enforceability of rights of parties arising from	4414
actions taken and agreements entered into under sections 166.01	4415
and 166.12 to 166.16 of the Revised Code.	4416

Sec. 166.13. (A) Prior to entering into each agreement to	4417
provide innovation financial assistance under sections 166.12,	4418
166.15, and 166.16 of the Revised Code, the director of	4419
development shall determine whether the assistance will conform to	4420
the requirements of sections 166.12 to 166.16 of the Revised Code.	4421
Such determination, and the facts upon which it is based, shall be	4422
set forth by the director in submissions made to the controlling	4423
board for purposes of section 166.16 of the Revised Code and to	4424
the development finance advisory council under section 166.14 of	4425
the Revised Code. An agreement to provide assistance under	4426
sections 166.12, 166.15, and 166.16 of the Revised Code shall set	4427
forth the determination, which shall be conclusive for purposes of	4428
the validity and enforceability of the agreement and any	4429
innovation loan guarantees, innovation loans, or other agreements	4430
entered into pursuant to the agreement to provide innovation	4431
financial assistance.	4432

(B) Whenever a person applies for innovation financial	4433
assistance under sections 166.12, 166.15, and 166.16 of the	4434
Revised Code and the eligible innovation project for which	4435
innovation financial assistance is requested is to relocate an	4436
eligible innovation project that is currently being operated by	4437
the person and that is located in another county, municipal	4438
corporation, or township, the director shall provide written	4439
notification to the appropriate local governmental bodies and	4440
state officials. The notification shall contain the following	4441
information:	4442

(1) The name of the person applying for innovation	4443
financial assistance;	4444

(2) The county, and the municipal corporation or township,	4445
in which the eligible innovation project for which innovation	4446
financial assistance is requested is located; and	4447

(3) The county, and the municipal corporation or township,	4448
in which the eligible innovation project to be replaced is	4449
located.	4450

The director shall provide the written notification to the	4451
appropriate local governmental bodies and state officials so that	4452
they receive the notification at least five days before the	4453
development finance advisory council meeting at which the council	4454
considers the request for innovation financial assistance pursuant	4455
to sections 166.12, 166.15, and 166.16 of the Revised Code.	4456

(C) As used in division (B) of this section:

4457

(1) "Appropriate local governmental bodies" means:

4458

(a) The boards of county commissioners or legislative	4459
authorities of the county in which the project for which	4460
innovation financial assistance is requested is located and of the	4461
county in which the eligible innovation project to be replaced is	4462
located;	4463

(b) The legislative authority of the municipal corporation	4464
or the board of township trustees of the township in which the	4465
eligible innovation project for which innovation financial	4466
assistance is requested is located; and	4467

(c) The legislative authority of the municipal corporation	4468
or the board of township trustees of the township in which the	4469
eligible innovation project to be replaced is located.	4470

(2) "State officials" means:

4471

(a) The state representative and state senator in whose	4472
districts the project for which innovation financial assistance is	4473
requested is located;	4474

(b) The state representative and state senator in whose	4475
districts the innovation project to be replaced is located.	4476

Sec. 166.14. (A) In determining the eligible innovation	4477
projects to be assisted and the nature, amount, and terms of	4478
innovation financial assistance to be provided for an eligible	4479
innovation project under sections 166.12 to 166.16 of the Revised	4480
Code:	4481

(1) The director of development shall take into	4482
consideration all of the following:	4483

(a) The number of jobs to be created or preserved by the	4484
eligible innovation project, directly or indirectly;	4485

(b) Payrolls, and the taxes generated, at both state and	4486
local levels, by or in connection with the eligible innovation	4487
project and by the employment created or preserved by or in	4488
connection with the eligible innovation project;	4489

(c) The size, nature, and cost of the eligible innovation	4490
project, including the prospect of the eligible innovation project	4491
for providing long-term jobs in enterprises consistent with the	4492
changing economics of the state and the nation;	4493

(d) The needs of any private sector enterprise to be	4494
assisted;	4495

(e) The amount and kind of assistance, if any, to be	4496
provided to the private sector enterprise by other governmental	4497
agencies through tax exemption or abatement, financing assistance	4498
with industrial development bonds, and otherwise, with respect to	4499
the eligible innovation project or with respect to any providers	4500
of innovation property to be included as part of the eligible	4501
innovation project;	4502

(f) The likelihood of the successful implementation of the	4503
proposed eligible innovation project;	4504

(g) Whether the eligible innovation project involves the	4505
use of technology in a targeted innovation industry sector.	4506

(2) The benefits to the local area, including taxes, jobs,	4507
and reduced unemployment and reduced welfare costs, among others,	4508
may be accorded value in the leasing or sales of innovation	4509
project facilities and in loan and guarantee arrangements.	4510

(3) In making determinations under division (A)(1) of this	4511
section, the director may consider the effect of an eligible	4512
innovation project upon any entity engaged to provide innovation	4513
property to be acquired, leased, or licensed in connection with	4514
such assistance.	4515

(B) The director shall submit to the development finance	4516
advisory council data pertinent to the considerations set forth in	4517
division (A) of this section, the terms of the proposed innovation	4518
financial assistance, and such other relevant information as the	4519
council may request.	4520

(C) The development finance advisory council, on the basis	4521
of such data, shall make recommendations as to the appropriateness	4522
of the innovation financial assistance to be provided. The	4523
recommendations may be revised to reflect any changes in the	4524
proposed innovation financial assistance as the director may	4525
submit to the council. The recommendations, as amended, of the	4526
council as to the appropriateness of the proposed innovation	4527
financial assistance shall be submitted to the controlling board.	4528

(D) Financial statements and other data submitted to the	4529
director of development, the development finance advisory council,	4530
or the controlling board by any private sector person in	4531
connection with innovation financial assistance under sections	4532
166.12, 166.15, and 166.16 of the Revised Code, or any information	4533
taken from such statements or data for any purpose, shall not be	4534
open to public inspection. The development finance advisory	4535
council in considering confidential information in connection with	4536
innovation financial assistance under this chapter may, only for	4537
consideration of the confidential information referred to, and in	4538
the manner provided in division (E) of section 121.22 of the	4539
Revised Code, close the meeting during such consideration.	4540

Sec. 166.15.  (A) Subject to any limitations as to	4541
aggregate amounts thereof that may from time to time be prescribed	4542
by the general assembly and to other applicable provisions of this	4543
chapter, the director of development may, on behalf of the state,	4544
enter into contracts to guarantee the repayment or payment of the	4545
unpaid principal amount of loans made, including bonds, notes, or	4546
other certificates issued or given to provide funds, to pay	4547
allowable innovation costs of eligible innovation projects. The	4548
guarantees shall be secured solely by and payable solely from the	4549
innovation Ohio loan guarantee fund and unencumbered and available	4550
moneys in the innovation Ohio loan fund, in the manner and to the	4551
extent provided in guarantee contracts consistent with this	4552
section. The guarantees shall not constitute general obligations	4553
of the state or of any political subdivision, and moneys raised by	4554
taxation shall not be obligated or pledged for the payment of the	4555
guarantees.	4556

(B) Before guaranteeing any such repayments or payments, the	4557
director shall determine that:	4558

(1) The project is an eligible innovation project and is	4559
economically sound.	4560

(2) The principal amount to be guaranteed does not exceed	4561
ninety per cent of the allowable innovation costs of the eligible	4562
innovation project as determined by the director. In making this	4563
determination, the director may, in the director's discretion,	4564
engage an independent engineer, architect, appraiser, or other	4565
professional to make it, pursuant to a contract to be paid solely	4566
from the innovation Ohio loan fund, subject to approval of the	4567
controlling board.	4568

(3) The principal amount to be guaranteed has a	4569
satisfactory maturity date or dates, which in no case shall be	4570
later than twenty years from the effective date of the guarantee.	4571

(4) The principal obligor, or primary guarantor, is	4572
responsible and is reasonably expected to be able to meet the	4573
payments under the loan, bonds, notes, or other certificates.	4574

(5) The loan or documents pertaining to the bonds, notes, or	4575
other certificates to be guaranteed contains provisions for	4576
payment by the principal obligor satisfactory to the director and	4577
is in such form and contains such terms and provisions for the	4578
protection of the lenders as are generally consistent with	4579
commercial practice for the type of eligible innovation project	4580
that is the subject of the assistance, including, where	4581
applicable, provisions with respect to property insurance,	4582
repairs, alterations, payment of taxes and assessments,	4583
delinquency charges, default remedies, acceleration of maturity,	4584
prior, additional, and secondary liens, and other matters as the	4585
director may approve.	4586

(C) The contract of guarantee may make provision for the	4587
conditions of, time for, and manner of fulfillment of the	4588
guarantee commitment, subrogation of this state to the rights of	4589
the parties guaranteed and exercise of such parties' rights by	4590
this state, giving this state the options of making payment of the	4591
principal amount guaranteed in one or more installments and, if	4592
deferred, to pay interest thereon from the innovation Ohio loan	4593
guarantee fund, and any other terms or conditions customary to	4594
such guarantees and as the director may approve, and may contain	4595
provisions for securing the guarantee in the manner consistent	4596
with this section, covenants on behalf of this state for the	4597
maintenance of the loan guarantee fund created by this section and	4598
of receipts to it permitted by this chapter, including covenants	4599
on behalf of this state to issue obligations under section 166.08	4600
of the Revised Code to provide moneys to the innovation Ohio loan	4601
guarantee fund to fulfill such guarantees, and covenants	4602
restricting the aggregate amount of guarantees that may be	4603
contracted under this section and obligations that may be issued	4604
under section 166.08 of the Revised Code, and terms pertinent to	4605
either, to better secure the parties guaranteed.	4606

(D) The innovation Ohio loan guarantee fund is hereby	4607
created as a special revenue fund and a trust fund which shall be	4608
in the custody of the treasurer of state but shall be separate and	4609
apart from and not a part of the state treasury and shall consist	4610
of all grants, gifts, and contributions of moneys or rights to	4611
moneys lawfully designated for or deposited in such fund, all	4612
moneys and rights to moneys lawfully appropriated and transferred	4613
to such fund, including moneys received from the issuance of	4614
obligations under section 166.08 of the Revised Code, and moneys	4615
deposited to such fund pursuant to division (F) of this section.	4616
The innovation Ohio loan guarantee fund shall not be comprised, in	4617
any part, of moneys raised by taxation.	4618

(E) The director may fix service charges for making a	4619
guarantee. The charges shall be payable at such times and place	4620
and in such amounts and manner as may be prescribed by the	4621
director.	4622

(F) The treasurer of state shall serve as agent for the	4623
director in the making of deposits and withdrawals and maintenance	4624
of records pertaining to the innovation Ohio loan guarantee fund.	4625
Prior to the director's entry into a contract providing for the	4626
making of a guarantee payable from the innovation Ohio loan	4627
guarantee fund, the treasurer of state shall cause to be	4628
transferred from the innovation Ohio loan fund to the innovation	4629
Ohio loan guarantee fund an amount sufficient to make the	4630
aggregate balance therein, taking into account the proposed loan	4631
guarantee equal to the innovation Ohio loan guarantee reserve	4632
requirement. Thereafter, the treasurer of state shall cause the	4633
balance in the innovation Ohio loan guarantee fund to be at least	4634
equal to the innovation Ohio loan guarantee reserve requirement.	4635
Funds from the innovation Ohio loan guarantee fund shall be	4636
disbursed under a guarantee made pursuant to this section to	4637
satisfy a guaranteed repayment or payment which is in default.	4638
After withdrawing moneys from the innovation Ohio loan guarantee	4639
fund, the treasurer of state shall transfer moneys in the	4640
innovation Ohio loan fund to the innovation Ohio loan guarantee	4641
fund to satisfy any repayment obligations. Whenever these moneys	4642
are inadequate to meet the requirements of a guarantee, the	4643
treasurer of state shall, without need of appropriation or further	4644
action by the director, provide for a withdrawal and transfer to	4645
the innovation Ohio loan guarantee fund and then to the guaranteed	4646
party of moneys in such amount as is necessary to meet the	4647
guarantee, from unencumbered and available moneys in the	4648
innovation Ohio loan fund. The disbursements shall be made in the	4649
manner and at the times provided in the guarantees. Within ninety	4650
days following a disbursement of money from the innovation Ohio	4651
loan guarantee fund, the treasurer of state, without need of	4652
appropriation or further action by the director, shall provide for	4653
a withdrawal and transfer to the innovation Ohio loan guarantee	4654
fund from unencumbered and available moneys in the innovation Ohio	4655
loan fund, including moneys from the repayment of loans made from	4656
that fund, of an amount sufficient to cause the balance in the	4657
innovation Ohio loan guarantee fund to be at least equal to the	4658
innovation Ohio loan guarantee reserve requirement.	4659

(G) Any guaranteed parties under this section, except to the	4660
extent that their rights are restricted by the guarantee	4661
documents, may by any suitable form of legal proceedings, protect	4662
and enforce any rights under the laws of this state or granted by	4663
such guarantee or guarantee documents. Such rights include the	4664
right to compel the performance of all duties of the director and	4665
the treasurer of state required by this section or the guarantee	4666
or guarantee documents; and in the event of default with respect	4667
to the payment of any guarantees, to apply to a court having	4668
jurisdiction of the cause to appoint a receiver to receive and	4669
administer the moneys pledged to such guarantee with full power to	4670
pay, and to provide for payment of, such guarantee, and with such	4671
powers, subject to the direction of the court, as are accorded	4672
receivers in general equity cases, excluding any power to pledge	4673
or apply additional revenues or receipts or other income or moneys	4674
of this state or governmental agencies of the state to the payment	4675
of such guarantee. Each duty of the director and the treasurer of	4676
state and their officers and employees, and of each governmental	4677
agency and its officers, members, or employees, required or	4678
undertaken pursuant to this section or a guarantee made under	4679
authority of this section, is hereby established as a duty of the	4680
director and the treasurer of state, and of each such officer,	4681
member, or employee having authority to perform such duty,	4682
specifically enjoined by the law resulting from an office, trust,	4683
or station within the meaning of section 2731.01 of the Revised	4684
Code. The persons who are at the time the director and treasurer	4685
of state, or their officers or employees, are not liable in their	4686
personal capacities on any guarantees or contracts to make	4687
guarantees by the director.	4688

(H) The determinations of the director under divisions (B)	4689
and (C) of this section shall be conclusive for purposes of the	4690
validity of a guarantee evidenced by a contract signed by the	4691
director, and such guarantee shall be incontestable as to money	4692
advanced under loans to which such guarantees are by their terms	4693
applicable.	4694

Sec. 166.16. (A) The director of development, with the	4695
approval of the controlling board and subject to the other	4696
applicable provisions of this chapter, may lend moneys in the	4697
innovation Ohio loan fund to persons for the purpose of paying	4698
allowable innovation costs of an eligible innovation project if	4699
the director determines that:	4700

(1) The project is an eligible innovation project and is	4701
economically sound.	4702

(2) The borrower is unable to finance the necessary	4703
allowable costs through ordinary financial channels upon	4704
comparable terms.	4705

(3) The amount to be lent from the innovation Ohio loan	4706
fund will not exceed ninety per cent of the total costs of the	4707
eligible innovation project.	4708

(4) The repayment of the loan from the innovation Ohio loan	4709
fund will be secured by a mortgage, lien, assignment, or pledge,	4710
or other interest in property or innovation property at such level	4711
of priority and value as the director may determine necessary,	4712
provided that, in making such a determination, the director may	4713
take into account the value of any rights granted by the borrower	4714
to the director to control the use of any property or innovation	4715
property of the borrower under the circumstances described in the	4716
loan documents.	4717

(B) The determinations of the director under division (A) of	4718
this section shall be conclusive for purposes of the validity of a	4719
loan commitment evidenced by a loan agreement signed by the	4720
director.	4721

(C) Fees, charges, rates of interest, times of payment of	4722
interest and principal, and other terms, conditions, and	4723
provisions of and security for loans made from the innovation Ohio	4724
loan fund shall be such as the director determines to be	4725
appropriate and in furtherance of the purpose for which the loans	4726
are made. The moneys used in making the loans shall be disbursed	4727
from the innovation Ohio loan fund upon order of the director.	4728
Unless otherwise specified in any indenture or other instrument	4729
securing obligations under division (D) of section 166.08 of the	4730
Revised Code, any payments of principal and interest from loans	4731
made from the innovation Ohio loan fund shall be paid to the	4732
innovation Ohio loan fund and used for the purpose of making	4733
loans.	4734

(D) The innovation Ohio loan fund is hereby created as a	4735
special revenue fund and a trust fund which shall be in the	4736
custody of the treasurer of state but shall be separate and apart	4737
from and not a part of the state treasury. The fund shall consist	4738
of all grants, gifts, and contributions of moneys or rights to	4739
moneys lawfully designated for or deposited in such fund, all	4740
moneys and rights to moneys lawfully appropriated and transferred	4741
to such fund, including moneys received from the issuance of	4742
obligations under section 166.08 of the Revised Code, and moneys	4743
deposited to such fund pursuant to divisions (C) and (G) of this	4744
section. The innovation Ohio loan fund shall not be comprised, in	4745
any part, of moneys raised by taxation.	4746

(E) The director may take actions necessary or appropriate	4747
to collect or otherwise deal with any loan made under this	4748
section.	4749

(F) The director may fix service charges for the making of	4750
a loan. The charges shall be payable at such times and place and	4751
in such amounts and manner as may be prescribed by the director.	4752

(G) The treasurer of state shall serve as an agent for the	4753
director in the making of deposits and withdrawals and maintenance	4754
of records pertaining to the innovation Ohio loan fund.	4755

(H)(1) There shall be credited to the innovation Ohio loan	4756
fund the moneys received by this state from the repayment of	4757
innovation Ohio loans and recovery on loan guarantees, including	4758
interest thereon, made from the innovation Ohio loan fund or from	4759
the innovation Ohio loan guarantee fund and from the sale, lease,	4760
or other disposition of property acquired or constructed from	4761
moneys in the innovation Ohio loan fund with moneys derived from	4762
the proceeds of the sale of obligations under section 166.08 of	4763
the Revised Code. Such moneys shall be applied as provided in	4764
this chapter pursuant to appropriations made by the general	4765
assembly.	4766

(2) Notwithstanding division (H)(1) of this section, any	4767
amounts recovered on innovation Ohio loan guarantees shall be	4768
deposited to the credit of the innovation Ohio loan guarantee fund	4769
to the extent necessary to restore that fund to the innovation	4770
Ohio loan guarantee reserve requirement or any level in excess	4771
thereof required by any guarantee contract. Money in the	4772
innovation Ohio loan guarantee fund in excess of the innovation	4773
Ohio loan guarantee reserve requirement, but subject to the	4774
provisions and requirements of any guarantee contracts, may be	4775
transferred to the innovation Ohio loan fund by the treasurer of	4776
state upon the order of the director of development.	4777

(3) In addition to the requirements of division (H)(1) of	4778
this section, moneys referred to in that division may be deposited	4779
to the credit of separate accounts within the innovation Ohio loan	4780
fund or in the bond service fund and pledged to the security of	4781
obligations, applied to the payment of bond service charges	4782
without need for appropriation, released from any such pledge and	4783
transferred to the innovation Ohio loan fund, all as and to the	4784
extent provided in the bond proceedings pursuant to written	4785
directions by the director of development. Accounts may be	4786
established by the director in the innovation Ohio loan fund for	4787
particular projects or otherwise. Income from the investment of	4788
moneys in the innovation Ohio loan fund shall be credited to that	4789
fund and, as may be provided in bond proceedings, to particular	4790
accounts in that fund. The treasurer of state may withdraw from	4791
the innovation Ohio loan fund or, subject to provisions of the	4792
applicable bond proceedings, from any special funds established	4793
pursuant to the bond proceedings, or from any accounts in such	4794
funds, any amounts of investment income required to be rebated and	4795
paid to the federal government in order to maintain the exemption	4796
from federal income taxation of interest on obligations issued	4797
under this chapter, which withdrawal and payment may be made	4798
without necessity for appropriation.	4799

Sec. 183.021.  (A) No money from the tobacco master	4800
settlement agreement fund shall be expended to do any of the	4801
following:	4802

(1) Hire an executive agency lobbyist, as defined under	4803
section 121.60 of the Revised Code, or a legislative agent, as	4804
defined under section 101.70 of the Revised Code;	4805

(2) Support or oppose candidates, ballot questions,	4806
referendums, or ballot initiatives.	4807

(B) Nothing in this section prohibits any of the following	4808
from advocating on behalf of the specific objectives of a program	4809
funded under this chapter:	4810

(1) The members of the board of trustees, executive	4811
director, or employees of the tobacco use prevention and control	4812
foundation;	4813

(2) The members of the board of trustees, executive	4814
director, or employees of the southern Ohio agricultural and	4815
community development foundation;	4816

(3) The members, executive director, or employees of the	4817
biomedical research and technology transfer commissionthird	4818
frontier commission or the members of the third frontier advisory	4819
board.	4820

Sec. 183.19.  The biomedical research and technology transfer	4821
trust fund is hereby created in the state treasury. Money	4822
credited to the fund shall be used as provided in sections 183.20	4823
to 183.25184.01 to 184.03 of the Revised Code. The third frontier	4824
commission shall administer the fund in accordance with those	4825
sections. All investment earnings of the fund shall be credited	4826
to the fund.	4827

Sec. 183.30.  (A) Except as provided in division (D) of this	4828
section, no more than five per cent of the total expenditures of	4829
the tobacco use prevention and control foundation in a fiscal year	4830
shall be for administrative expenses of the foundation.	4831

(B) Except as provided in division (D) of this section, no	4832
more than five per cent of the total expenditures of the southern	4833
Ohio agricultural and community development foundation in a fiscal	4834
year shall be for administrative expenses of the foundation.	4835

(C) Except as provided in division (D) of this section, no	4836
more than five per cent of the total expenditures ofmade from the	4837
biomedical research and technology transfer commissionbiomedical	4838
research and technology transfer trust fund by the third frontier	4839
commission in a fiscal year shall be for administrative expenses	4840
of the commission.	4841

(D) This section's five per cent limitation on	4842
administrative expenses does not apply to any fiscal year for	4843
which the controlling board approves a spending plan that the	4844
foundation or commission submits to the board.	4845

Sec. 184.01.  (A) There is hereby created the third	4846
frontier commission in the department of development. The purpose	4847
of the commission is to coordinate and administer science and	4848
technology programs to promote the welfare of the people of the	4849
state and to maximize the economic growth of the state through	4850
expansion of both of the following:	4851

(1) The state's high technology research and development	4852
capabilities;	4853

(2) The state's product and process innovation and	4854
commercialization.	4855

(B) The commission shall consist of the director of	4856
development, the chancellor of the Ohio board of regents, and the	4857
governor's science and technology advisor. The governor shall	4858
select a chairperson from among the members, who shall serve in	4859
that role at the pleasure of the governor. Sections 101.82 to	4860
101.87 of the Revised Code do not apply to the commission.	4861

(C) The commission shall meet at least once during each	4862
quarter of the calendar year or at the call of the chairperson. A	4863
majority of all members of the commission constitutes a quorum,	4864
and no action shall be taken without the concurrence of a majority	4865
of the members.	4866

(D) The commission shall administer any money that may be	4867
appropriated to it by the general assembly. The commission may use	4868
such money for research and commercialization and for any other	4869
purposes that may be designated by the commission.	4870

(E) The department of development shall provide office space	4871
and facilities for the commission. Administrative costs associated	4872
with the operation of the commission or with any program or	4873
activity administered by the commission shall be paid from amounts	4874
appropriated to the commission or to the department of development	4875
for such purposes.	4876

(F) The attorney general shall serve as the legal	4877
representative for the commission and may appoint other counsel as	4878
necessary for that purpose in accordance with section 109.07 of	4879
the Revised Code.	4880

(G) Members of the commission shall serve without	4881
compensation, but shall receive their reasonable and necessary	4882
expenses incurred in the conduct of commission business.	4883

Sec. 184.02.  (A) The third frontier commission may	4884
perform any act to ensure the performance of any function	4885
necessary or appropriate to carry out the purposes of, and	4886
exercise the powers granted under, sections 184.01 and 184.02 of	4887
the Revised Code. In addition, the commission may do any of the	4888
following:	4889

(1) Adopt, amend, and rescind rules under section 111.15 of	4890
the Revised Code for the administration of any aspect of its	4891
operations;	4892

(2) Adopt bylaws governing its operations, including bylaws	4893
that establish procedures and set policies as may be necessary to	4894
assist with the furtherance of its purposes;	4895

(3) Appoint and set the compensation of employees needed to	4896
carry out its duties;	4897

(4) Contract with, retain the services of, or designate, and	4898
fix the compensation of, such financial consultants, accountants,	4899
other consultants and advisors, and other independent contractors	4900
as may be necessary or desirable to carry out its duties;	4901

(5) Solicit input and comments from the third frontier	4902
advisory board, and specialized industry, professional, and other	4903
relevant interest groups concerning its purposes;	4904

(6) Facilitate alignment of the state's science and	4905
technology programs and activities;	4906

(7) Make grants and loans to individuals, public agencies,	4907
private companies or organizations, or joint ventures for any of	4908
the broad range of activities related to its purposes.	4909

(B) The commission shall do all of the following:

4910

(1) Establish a competitive process for the award of grants	4911
and loans that is designed to fund the most meritorious proposals	4912
and, when appropriate, provide for peer review of proposals;	4913

(2) Within ninety days after the end of each fiscal year,	4914
submit to the governor and the general assembly a report of the	4915
activities of the commission during the preceding fiscal year;	4916

(3) With specific application to the biomedical research and	4917
technology transfer trust fund, periodically make strategic	4918
assessments of the types of state investments in biomedical	4919
research and biotechnology in the state that would likely create	4920
jobs and business opportunities in the state and produce the most	4921
beneficial long-term improvements to the public health of	4922
Ohioians, including, but not limited to, biomedical research and	4923
biotechnology initiatives that address tobacco-related illnesses	4924
as may be outlined in any master agreement. The commission shall	4925
award grants and loans from the fund pursuant to a process	4926
established under division (B)(1) of this section.	4927

Sec. 184.03.  (A) There is hereby created the third	4928
frontier advisory board that, upon request of the third frontier	4929
commission, shall provide general advice to the commission on	4930
various items including, but not limited to, the following:	4931

(1) Strategic planning for programs administered by the	4932
commission;	4933

(2) Budget and funding priorities, funding processes,	4934
request-for-proposal criteria, and other aspects of the management	4935
and coordination of programs administered by the commission;	4936

(3) Metrics and methods of measuring the progress and impact	4937
of programs administered by the commission;	4938

(4) Studies to be conducted to collect and analyze data	4939
relevant to advancing the goals of programs administered by the	4940
commission.	4941

(B) The board shall consist of sixteen members selected for	4942
their knowledge of and experience in science and technology	4943
matters that may affect the state in the near future. Of the	4944
sixteen members, fourteen shall be appointed by the governor, one	4945
shall be appointed by the speaker of the house of representatives,	4946
and one shall be appointed by the president of the senate.	4947

(1) Of the fourteen members appointed by the governor, nine	4948
shall be representative of or have experience with business	4949
matters that affect the state and five shall be representative of	4950
or have experience with matters affecting universities or	4951
nonprofit research institutions in the state.	4952

(2) Of the governor's initial appointees that are	4953
representative of or have experience with business matters that	4954
affect the state, three shall serve an initial term of one year,	4955
three shall serve an initial term of two years, and three shall	4956
serve an initial term of three years. All of the initial	4957
appointees that are representative of or have experience with	4958
matters affecting university or nonprofit research institutions	4959
shall serve an initial term of three years. Thereafter, each	4960
member appointed by the governor shall serve a three-year term.	4961

(3) All appointees to the board shall serve at the pleasure	4962
of their appointing authorities.	4963

(4) Not more than nine members of the board shall be of the	4964
same political party.	4965

(C) The governor shall appoint the chairperson of the board	4966
from among its members, and the chairperson shall serve in that	4967
role at the pleasure of the governor.	4968

(D) A majority of the members of the board constitutes a	4969
quorum, and no action shall be taken without the affirmative vote	4970
of a majority of the members.	4971

(E) Each member of the board shall hold office from the date	4972
of appointment until the end of the term for which the member was	4973
appointed. A member may be reappointed for an unlimited number of	4974
terms. A member appointed to fill a vacancy occurring prior to the	4975
expiration of the term for which the member's predecessor was	4976
appointed shall hold office for the remainder of such term. A	4977
vacancy in an unexpired term shall be filled in the same manner as	4978
the original appointment. A member of the board shall continue in	4979
office subsequent to the expiration date of the member's term	4980
until the member's successor takes office, or until a period of	4981
sixty days has elapsed, whichever occurs first. The governor may	4982
remove any member of the board for malfeasance, misfeasance, or	4983
nonfeasance after a hearing in accordance with Chapter 119. of the	4984
Revised Code.	4985

(F) Members of the board shall not act as representatives of	4986
any specific disciplinary, regional, or organizational interest.	4987
Members shall represent a wide variety of experience valuable in	4988
technology research and development, product process innovation	4989
and commercialization, and creating and managing high-growth	4990
technology-based companies.	4991

(G) Members of the board shall file financial disclosure	4992
statements described in division (B) of section 102.02 of the	4993
Revised Code.	4994

(H) Members of the board shall serve without compensation but	4995
shall receive their reasonable and necessary expenses incurred in	4996
the conduct of board business.	4997

(I) Before entering upon duties as a member of the board,	4998
each member shall take an oath as provided by Section 7 of	4999
Article XV, Ohio Constitution.	5000

(J) The department of development shall provide office space	5001
and facilities for the board.	5002

(K) Sections 101.82 to 101.87 of the Revised Code do not	5003
apply to the board.	5004

Sec. 307.23.  The board of county commissioners of any county	5005
having a population of less than twenty-five thousand, according	5006
to the most recently completed United States decennial census, may	5007
appropriate, out of the revenue fund not otherwise appropriated, a	5008
sum not exceeding twenty thousand dollars annually; in counties	5009
having a population of more than twenty-five thousand and not more	5010
than one hundred thousand, according to such census, the board may	5011
appropriate a sum not exceeding thirty-two thousand dollars	5012
annually; in counties having a population of more than one hundred	5013
thousand and not more than three hundred thousand, according to	5014
such census, the board may appropriate a sum not exceeding sixty	5015
thousand dollars annually; in counties having a population of more	5016
than three hundred thousand, according to such census, the board	5017
may appropriate a sum not exceeding one hundred thousand dollars	5018
annually,money to be paid to the historical society of such	5019
counties respectively, tothe county or to local societies for the	5020
preservation and restoration of historic and archaeological sites	5021
located in the county. The money may be used for the promotion of	5022
historical work within the borders of the county, and for the	5023
restoration or reconstruction of historic buildings, for the	5024
collection, preservation, and publication of historical material,	5025
and to disseminate historical information of the county, and in	5026
general to defray the expense of carrying on historical work in	5027
suchthe county.	5028

SuchOther than for the restoration or reconstruction of	5029
historic buildings, funds appropriated under this section may not	5030
be used for the construction of buildings. No board may	5031
appropriate any funds for the benefit of any county historical	5032
society or preservation and restoration society unless such	5033
society is incorporated not for profit under the laws of this	5034
state. Application for the funds shall be made in the form of a	5035
certified copy of a resolution adopted by the applicant society.	5036

Sec. 307.675. (A) As used in this section, "long life	5037
expectancy material" means any material, including a composite,	5038
that, when used for a bridge deck in lieu of steel, concrete, or	5039
reinforced concrete, will result in an expected useful life of the	5040
bridge deck before replacement of at least thirty years.	5041

(B) A county engineer may make a recommendation to the	5042
board of county commissioners for the issuance of indebtedness of	5043
the county as provided under division (C) of this section if the	5044
county engineer determines that the projected savings from the use	5045
of long life expectancy material in the construction or repair of	5046
the bridge deck of a bridge for which the county has construction	5047
or maintenance responsibility are sufficient to pay any additional	5048
debt service costs of that indebtedness. In making this	5049
determination, the county engineer shall do all of the following:	5050

(1) Determine the expected useful life of the bridge deck if	5051
constructed or repaired using long life expectancy material. In	5052
making the determination, the county engineer shall use credible	5053
data and shall thoroughly review any data used that is not	5054
generated by the engineer.	5055

(2) Determine the additional debt service costs the county	5056
would incur issuing indebtedness under division (C) of this	5057
section compared to issuing indebtedness to construct or repair	5058
the bridge deck using steel, concrete, or reinforced steel;	5059

(3) Compare the additional debt service costs to the	5060
projected savings in operating, repair, and future capital	5061
improvement costs of the bridge deck over the lesser of fifty	5062
years or its expected useful life.	5063

The county engineer also may include in a recommendation	5064
under division (B) of this section a recommendation to purchase	5065
and install performance monitoring equipment to monitor the	5066
physical condition of the bridge so constructed or repaired.	5067

(C) Upon a recommendation of the county engineer pursuant	5068
to division (B) of this section, and pursuant to division (C)(7)	5069
of section 133.07 of the Revised Code, a board of county	5070
commissioners may issue indebtedness of the county subject to, and	5071
having a maximum maturity specified in, division (B)(1)(c) of	5072
section 133.20 of the Revised Code, for the purpose of	5073
constructing or repairing with long life expectancy material the	5074
bridge deck of a bridge for which the county has construction or	5075
maintenance responsibility and, if also so recommended, for the	5076
purpose of purchasing, installing, and maintaining in conjunction	5077
with the bridge improvement performance monitoring equipment to	5078
monitor the physical condition of the bridge. The authority	5079
conferred by this division is in addition to any other statutory	5080
authority of a board to issue indebtedness for a bridge	5081
improvement, including an improvement using long life expectancy	5082
material.	5083

Sec. 715.02. (A) Two or more municipal corporations, one or	5084
more municipal corporations and one or more other political	5085
subdivisions, or two or more political subdivisions other than	5086
municipal corporations may enter into an agreement for the joint	5087
construction or management, or construction and management, of any	5088
public work, utility, or improvement, benefiting each such	5089
municipal corporation or other political subdivision or for the	5090
joint exercise of any power conferred on municipal corporations or	5091
other political subdivisions by the constitution or laws of this	5092
state, in which each of suchthe municipal corporations or other	5093
political subdivisions is interested. Any such agreement shall be	5094
approved by ordinance or resolution, as applicable, passed by the	5095
legislative body of each municipal corporation or other political	5096
subdivision that is a party thereto, whichto the agreement. The	5097
ordinance or resolution shall set forth the agreement in full,	5098
and, when approved, shall be a binding contract between such	5099
municipal corporations.	5100

(A)(B) Any agreement, entered into as provided in this	5101
section, shall provide for the following:	5102

(1) The method by which the work, utility, or improvement	5103
specified thereinin it shall be jointly constructed or managed;	5104

(2) The method by which any specified power shall be jointly	5105
exercised;	5106

(3) Apportioning among the contracting municipal	5107
corporations or other political subdivisions any expense of	5108
jointly constructing, maintaining, or managing any work, utility,	5109
or improvement or jointly exercising any power.	5110

(B)(C) Any agreement, entered into as provided in this	5111
section, may provide for either of the following:	5112

(1) Assessing the cost, or any specified part of the cost,	5113
of the joint construction, maintenance, or management of any	5114
public work, utility, or improvement upon abutting property	5115
specially benefited thereby;	5116

(2) Assessing the cost, or any specified part of the cost,	5117
of constructing, maintaining, or managing any such public work,	5118
utility, or improvement upon the property within any district	5119
clearly specified in suchthe agreement, in proportion to benefits	5120
derived by suchthat property from suchthe work, utility, or	5121
improvement.	5122

(D) Each municipal corporation or other political subdivision	5123
may issue bonds for its portion of the cost of any such public	5124
work, utility, or improvement, if Chapter 133. of the Revised Code	5125
would authorize the issuance of suchthose bonds in the event such	5126
if the municipal corporation or other political subdivision alone	5127
were undertaking the construction of such publicthe work,	5128
utility, or improvement, and subject to the same conditions and	5129
restrictions which would then apply.	5130

Sec. 718.151. A municipal corporation, by ordinance, may	5131
grant a nonrefundable credit against its tax on income to a	5132
taxpayer that also receives a tax credit under section 122.171 of	5133
the Revised Code. If a credit is granted under this section, it	5134
shall be measured as a percentage of the income tax revenue the	5135
municipal corporation derives from the retained employees of the	5136
taxpayer, and shall be for a term not exceeding ten years. Before	5137
a municipal corporation passes an ordinance allowing such a	5138
credit, the municipal corporation and the taxpayer shall enter	5139
into an agreement specifying all the conditions of the credit.	5140

Sec. 1561.351.  A deputy mine inspector who makes a finding	5141
concerning a violation of this chapter or Chapter 1563., 1565., or	5142
1567. or section 1509.09, 1509.12, 1509.13, 1509.14, 1509.15,	5143
1509.17, or 1509.18 of the Revised Code that involves mining	5144
safety shall notify the chief of the division of mineral resources	5145
managementowner, operator, lessee, agent, and representative of	5146
the miners of the mine involved of the finding. The owner,	5147
operator, lessee, or agent of the mine involved may request a	5148
review of the inspector's finding by the chief of the division of	5149
mineral resources management. Upon receipt of such a request, the	5150
chief shall review the inspector's finding, make a written	5151
determination regarding it, and provide a copy of the written	5152
determination to the owner, operator, lessee, or agent of the mine	5153
involved. The chief shall provide a copy of the written	5154
determination to any other interested party upon request.	5155

A person, such as an owner, operator, lessee, or agent of the	5156
mine or the authorized representative of the workersminers of the	5157
mine, who has an interest that is or may be adversely affected by	5158
the chief's determination may appeal the determination, not later	5159
than ten days after receiving notice of the determination, to the	5160
reclamation commission by filing a copy of the chief's written	5161
determination with the commission, notwithstanding division	5162
(A)(1) of section 1513.13 of the Revised Code, which provides for	5163
appeals within thirty days. The commission shall hear the appeal	5164
in accordance with section 1513.13 of the Revised Code.	5165

Sec. 1565.04.  The operator of each mine who is an employer	5166
as defined in section 4123.01 of the Revised Code, or any mine	5167
with three or more workers, shall employ a certified mine	5168
foreperson. In gaseous underground mines, only a holder of a mine	5169
foreperson of gaseous mines certificate that contains a notation	5170
by the chief of the division of mineral resources management	5171
showing the holder to be at least twenty-three years of age and	5172
have at least five years' actual practical experience in gaseous	5173
mines shall be employed as the mine foreperson. In other	5174
underground mines, the mine foreperson shall be a holder of a	5175
mine foreperson of nongaseous mines certificate that contains a	5176
notation by the chief showing the holder to be at least	5177
twenty-one years of age and have at least three years' actual	5178
practical experience in mines. All such underground mines shall	5179
have at least one certified foreperson on duty at all times when	5180
workers are employed in the loading or mining of coal underground.	5181
Each active working area of a surface coal mine and each active	5182
surface installation of an underground coal mine shall be examined	5183
for hazardous conditions, at least once during each working shift	5184
or more often if necessary for safety, by a certified mine	5185
foreperson who is designated by the operator to conduct such	5186
examinations. Any hazardous conditions noted during the	5187
examinations shall be reported to the operator and shall be	5188
corrected by the operator. A certified mine foreperson may	5189
conduct the examination that is required during each shift at	5190
multiple mine sites, provided that the sites are within a ten-mile	5191
radius.	5192

No operator of a mine shall refuse or neglect to comply with	5193
this section.	5194

Sec. 1565.15.  (A) As used in this section:

5195

(1) "EMT-basic," "EMT-I," "paramedic," and "emergency	5196
medical service organization" have the same meanings as in section	5197
4765.01 of the Revised Code.	5198

(2) "First aid provider" includes an EMT-basic, an EMT-I, a	5199
paramedic, or a supervisoryan employee at a surface coal mine who	5200
has satisfied the training requirements established in division	5201
(D)(1) of this section.	5202

(B) The operator of an underground coal mine where twenty or	5203
more persons are employed on a shift, including all persons	5204
working at different locations at the mine within a ten-mile	5205
radius, shall provide at least one EMT-basic or EMT-I on duty at	5206
the underground coal mine whenever employees at the mine are	5207
actively engaged in the extraction, production, or preparation of	5208
coal. The operator shall provide EMTs-basic or EMTs-I on duty at	5209
the underground coal mine at times and in numbers sufficient to	5210
ensure that no miner works in a mine location that cannot be	5211
reached within a reasonable time by an EMT-basic or an EMT-I.	5212
EMTs-basic and EMTs-I shall be employed on their regular coal	5213
mining duties at locations convenient for quick response to	5214
emergencies in order to provide emergency medical services inside	5215
the underground coal mine and transportation of injured or sick	5216
employees to the entrance of the mine. The operator shall provide	5217
for the services of at least one emergency medical service	5218
organization to be available on call to reach the entrance of the	5219
underground coal mine within thirty minutes at any time that	5220
employees are engaged in the extraction, production, or	5221
preparation of coal in order to provide emergency medical services	5222
and transportation to a hospital.	5223

The operator shall make available to EMTs-basic and EMTs-I	5224
all of the equipment for first aid and emergency medical services	5225
that is necessary for those personnel to function and to comply	5226
with the regulations pertaining to first aid and emergency medical	5227
services that are adopted under the "Federal Mine Safety and	5228
Health Act of 1977," 91 Stat. 1290, 30 U.S.C.A. 801, and	5229
amendments to it. The operator of the underground coal mine shall	5230
install telephone service or equivalent facilities that enable	5231
two-way voice communication between the EMTs-basic or EMTs-I in	5232
the mine and the emergency medical service organization outside	5233
the mine that provides emergency medical services on a regular	5234
basis.	5235

(C) The operator of a surface coal mine shall provide at	5236
least one first aid provider on duty at the mine whenever	5237
employees at the mine are actively engaged in the extraction,	5238
production, or preparation of coal. The operator shall provide	5239
first aid providers on duty at the surface coal mine at times and	5240
in numbers sufficient to ensure that no miner works in a mine	5241
location that cannot be reached within a reasonable time by a	5242
first aid provider. First aid providers shall be employed on	5243
their regular coal mining duties at locations convenient for quick	5244
response to emergencies in order to provide emergency medical	5245
services and transportation of injured or sick employees to the	5246
entrance of the surface coal mine. The operator shall provide for	5247
the services of at least one emergency medical service	5248
organization to be available on call to reach the entrance of the	5249
surface coal mine within thirty minutes at any time that employees	5250
are engaged in the extraction, production, or preparation of coal	5251
in order to provide emergency medical services and transportation	5252
to a hospital.	5253

The operator shall make available to first aid providers	5254
provide at the mine site all of the equipment for first aid and	5255
emergency medical services that is necessary for those personnel	5256
to function and to comply with the regulations pertaining to first	5257
aid and emergency medical services that are adopted under the	5258
"Federal Mine Safety and Health Act of 1977," 91 Stat. 1290, 30	5259
U.S.C.A. 801, and amendments to it, including, without limitation,	5260
a portable oxygen cylinder with a medical regulator and oxygen	5261
delivery system.	5262

(D)(1) A supervisoryAn employee at a surface coal mine shall	5263
be considered to be a first aid provider for the purposes of this	5264
section if the employee has received from an instructor approved	5265
by the chief of the division of mineral resources management ten	5266
hours of initial first aid training as a selected supervisory	5267
employee under 30 C.F.R. 77.1703 and receives five hours of	5268
refresher first aid training as a selected supervisory employee	5269
under 30 C.F.R. 77.1705 in each subsequent calendar year.	5270

(2) Each miner employed at a surface coal mine who is not a	5271
first aid provider shall receive from an instructor approved by	5272
the chief three hours of initial first aid training and two hours	5273
of refresher first aid training in each subsequent calendar year.	5274

(3) The training received in accordance with division (D) of	5275
this section shall consist of a course of instruction established	5276
in the manual issued by the mine safety and health administration	5277
in the United States department of labor entitled "first aid, a	5278
bureau of mines instruction manual" or its successor or any other	5279
curriculum approved by the chief. The training shall be included	5280
in the hours of instruction provided to miners in accordance with	5281
training requirements established under 30 C.F.R. part 48, subpart	5282
(B), as amended, and 30 C.F.R. part 77, as amended.	5283

(E) Each operator of a surface coal mine shall establish,	5284
keep current, and make available for inspection an emergency	5285
medical plan that includes the telephone numbers of the division	5286
of mineral resources management and of an emergency medical	5287
services organization the services of which are required to be	5288
retained under division (C) of this section. The chief shall	5289
adopt rules in accordance with Chapter 119. of the Revised Code	5290
that establish any additional information required to be included	5291
in an emergency medical plan.	5292

(F) Each operator of an underground coal mine or surface	5293
coal mine shall provide or contract to obtain emergency medical	5294
services training or first aid training, as applicable, at the	5295
operator's expense, that is sufficient to train and maintain the	5296
certification of the number of employees necessary to comply with	5297
division (B) of this section and that is sufficient to train	5298
employees as required under division (D) of this section and to	5299
comply with division (C) of this section.	5300

(G) The division may provide emergency medical services	5301
training for coal mine employees by operating an emergency medical	5302
services training program accredited under section 4765.17 of the	5303
Revised Code or by contracting with the operator of an emergency	5304
medical services training program accredited under that section to	5305
provide that training. The division may charge coal mine	5306
operators a uniform part of the unit cost per trainee.	5307

(H) No coal mine operator shall violate or fail to comply	5308
with this section.	5309

Sec. 1711.11.  (A) No person shall operate any concession at	5310
any fair or exposition conducted by a county or independent	5311
agricultural society or by the Ohio expositions commission without	5312
first obtaining from the director of agriculture a license to do	5313
so under division (B) of this section;, nor shall any officer,	5314
agent, or employee of a county or independent agricultural society	5315
or of the Ohio expositions commission grant a privilege or	5316
concession to any person to do so, unless the person holds a	5317
license.	5318

For the purposes of this section, "concession" means any	5319
show, amusement other than an amusement ride as defined in	5320
division (A) of section 1711.50 of the Revised Code, game, or	5321
novelty stand operation at a fair or exposition, but does not	5322
include food or drink operations.	5323

(B) A license shall be issued by the director only upon a	5324
written application containing a detailed description of the	5325
concession. Blank applications for licenses shall be prepared and	5326
furnished by the director.	5327

(C) No license shall be issued until the applicant has paid	5328
a fee of fiftyseventy dollars to the director, except that no fee	5329
shall be collected from nonprofit organizations which are recorded	5330
as such by the secretary of state or with the internal revenue	5331
service. The director shall pay the fee into the state treasury	5332
to the credit of the amusement ride inspection fund established by	5333
section 1711.53 of the Revised Code.	5334

(D) A license issued under this section shall contain a	5335
detailed description of the concession licensed, shall expire on	5336
the thirty-first day of December following the date of issue, and	5337
shall be kept by the licensee in a conspicuous place where the	5338
licensee's concession is in operation.	5339

(E)(1) The director shall employ and provide training for a	5340
chief inspector and additional inspectors and employees as	5341
necessary to administer and enforce this section. The director	5342
may appoint or contract with other persons to perform inspections	5343
of concessions, provided that the persons meet the qualifications	5344
for inspectors established by rules adopted under division (G) of	5345
this section and are not owners or employees of owners of any	5346
concession subject to inspection under this section. No person	5347
shall inspect a concession who, within six months prior to the	5348
date of inspection, was an employee of the owner of the	5349
concession.	5350

(2) Before the director contracts with other persons to	5351
inspect concessions, the director shall seek the advice of the	5352
advisory council on amusement ride safety on whether to contract	5353
with suchthose persons. SuchThe advice shall not be binding upon	5354
the director. After having received the advice of the council the	5355
director may proceed to contract for amusement ride inspectors and	5356
award the contract to the lowest responsive and responsible bidder	5357
in accordance with section 9.312 of the Revised Code. In order to	5358
determine the lowest responsive and responsible bid, the director,	5359
with the advice of the council, shall adopt rules governing the	5360
terms of the contract between the department of agriculture and	5361
the inspector. The rules shall prescribe the training and work	5362
experience required of an inspector, any insurance or bonds	5363
required of an inspector, and all the services the inspector will	5364
be required to perform on behalf of the department in an efficient	5365
professional manner.	5366

(F) This section does not require the officers of any such	5367
county or independent agricultural society or of the Ohio	5368
expositions commission to grant any privilege or concession to any	5369
licensee.	5370

(G) The director shall enforce this section and, in	5371
accordance with Chapter 119. of the Revised Code, adopt all rules	5372
that are necessary for its enforcement. If the director finds	5373
that this section has been violated or that the licensee has been	5374
dishonest or has been fraudulent in dealings with the public, the	5375
director, in accordance with Chapter 119. of the Revised Code,	5376
shall revoke the licensee's license or fine the licensee not more	5377
than one thousand dollars, or both. The director, for a period	5378
not exceeding two years from the date of revocation, may refuse to	5379
issue another license to a person for a concession for which the	5380
person's license has been revoked. Notwithstanding section 119.12	5381
of the Revised Code, all appeals from any fine by, or order of,	5382
the director shall be to the court of common pleas of the county	5383
where the place of business of the person is located or to the	5384
common pleas court of the county in which the person is a resident	5385
or in which the concession is located.	5386

(H) Any person holding a license issued under this section	5387
who permits or tolerates at any place on the fairground where the	5388
person's concession is in operation, any immoral show, lottery	5389
device, game of chance, or gambling of any kind, including pool	5390
selling and paddle wheels, or who violates the terms of the	5391
license issued to the person, shall forfeit the license, and the	5392
director shall not issue any other license to the person until	5393
after a period of two years from the forfeiture. For the purposes	5394
of this division, "lottery device," "game of chance," and	5395
"gambling of any kind" do not include the sale of lottery tickets	5396
by the state lottery commission pursuant to Chapter 3770. of the	5397
Revised Code at the state fairground during the state fair. For	5398
the purposes of this section and section 1711.09 of the Revised	5399
Code, contests, games, tournaments, and other activities, the	5400
outcome of which is predominantly determined by the skill of the	5401
contestants, participants, or players, whether or not the	5402
contestants, participants, or players pay a price for the	5403
opportunity to win a prize, do not constitute a game of chance or	5404
gambling within the meaning, purpose, and intent of this section	5405
and section 1711.09 of the Revised Code or sections 2915.01 to	5406
2915.04 of the Revised Code. The foregoing definition does not	5407
apply where the contest, game, tournament, or other activity,	5408
contains or includes any mechanical or physical device which	5409
directly or indirectly impedes, impairs, or thwarts the skill of	5410
the contestant, participant, or player.	5411

Sec. 1711.53.  (A)(1) No person shall operate an amusement	5412
ride within the state without a permit issued by the director of	5413
agriculture under division (A)(2) of this section. The owner of	5414
an amusement ride, whether the ride is a temporary amusement ride	5415
or a permanent amusement ride, who desires to operate the	5416
amusement ride within the state shall, prior to the operation of	5417
the amusement ride and annually thereafter, submit to the	5418
department of agriculture an application for a permit, together	5419
with the appropriate permit and inspection fee, on a form to be	5420
furnished by the department. Prior to issuing any permit the	5421
department shall, within thirty days after the date on which it	5422
receives the application, inspect each amusement ride described in	5423
the application. The owner of an amusement ride shall have the	5424
amusement ride ready for inspection not later than two hours after	5425
the time that is requested by the person for the inspection.	5426

(2) For each amusement ride found to comply with the rules	5427
ofadopted by the director issued under division (B) of this	5428
section and division (B) of section 1711.551 of the Revised Code,	5429
the director shall issue an annual permit, provided that evidence	5430
of liability insurance coverage for the amusement ride as required	5431
by section 1711.54 of the Revised Code is on file with the	5432
department.	5433

(3) The director shall issue with each permit a decal	5434
indicating that the amusement ride has been issued the permit. The	5435
owner of the amusement ride shall affix the decal on the ride at a	5436
location where the decal is easily visible to the patrons of the	5437
ride. A copy of the permit shall be kept on file at the same	5438
address as the location of the amusement ride identified on the	5439
permit, and shall be made available for inspection, upon	5440
reasonable demand, by any person. An owner may operate an	5441
amusement ride prior to obtaining a permit, provided that suchthe	5442
operation is for the purpose of testing the amusement ride or	5443
training amusement ride operators and other employees of the owner	5444
and the amusement ride is not open to the public.	5445

(B) The director, in accordance with Chapter 119. of the	5446
Revised Code, shall adopt rules providing for a schedule of fines,	5447
with no fine exceeding five thousand dollars, for violations of	5448
sections 1711.50 to 1711.57 of the Revised Code or any rules	5449
promulgated pursuant toadopted under this division and for the	5450
classification of amusement rides and rules for the safe operation	5451
and inspection of all amusement rides as are necessary for	5452
amusement ride safety and for the protection of the general	5453
public. Rules adopted by the director for the safe operation and	5454
inspection of amusement rides shall be reasonable and based upon	5455
generally accepted engineering standards and practices. In	5456
adopting rules under this section, the director may adopt by	5457
reference, in whole or in part, the national fire code or the	5458
national electrical code prepared by the national fire protection	5459
association, the standards of ASTM or the American national	5460
standards institute, or any other principles, tests, or standards	5461
of nationally recognized technical or scientific authorities.	5462
Insofar as is practicable and consistent with sections 1711.50 to	5463
1711.57 of the Revised Code, rules adopted under this division	5464
shall be consistent with the rules of other states. The	5465
department shall cause sections 1711.50 to 1711.57 of the Revised	5466
Code and the rules adopted in accordance with this division and	5467
division (B) of section 1711.551 of the Revised Code to be	5468
published in pamphlet form and a copy to be furnished without	5469
charge to each owner of an amusement ride who holds a current	5470
permit or is an applicant therefor.	5471

(C) With respect to an application for a permit for an	5472
amusement ride, an owner may apply to the director of agriculture	5473
for a waiver or modification of any rule adopted under division	5474
(B) of this section if there are practical difficulties or	5475
unnecessary hardships for the amusement ride to comply with such	5476
the rules. Any application mustshall set forth the reasons for	5477
suchthe request. The director, with the approval of the advisory	5478
council on amusement ride safety, may waive or modify the	5479
application of a rule to any amusement ride if the public safety	5480
is secure. Any authorization by the director under this division	5481
shall be in writing and shall set forth the conditions under which	5482
the waiver or modification is authorized, and the department shall	5483
retain separate records of all proceedings under this division.	5484

(D)(1) The director shall employ and provide for training of	5485
a chief inspector and additional inspectors and employees as may	5486
be necessary to administer and enforce sections 1711.50 to 1711.57	5487
of the Revised Code. The director may appoint or contract with	5488
other persons to perform inspections of amusement rides, provided	5489
that the persons meet the qualifications for inspectors	5490
established by rules adopted under division (B) of this section	5491
and are not owners, or employees of owners, of any amusement ride	5492
subject to inspection under sections 1711.50 to 1711.57 of the	5493
Revised Code. No person shall inspect an amusement ride who,	5494
within six months prior to the date of inspection, was an employee	5495
of the owner of the ride.	5496

(2) Before the director contracts with other persons to	5497
inspect amusement rides, the director shall seek the advice of the	5498
advisory council on amusement ride safety on whether to contract	5499
with suchthose persons. SuchThe advice shall not be binding upon	5500
the director. After having received the advice of the council,	5501
the director may proceed to contract with inspectors in accordance	5502
with the procedures specified in division (E)(2) of section	5503
1711.11 of the Revised Code.	5504

(3) With the advice and consent of the advisory council on	5505
amusement ride safety, the director may employ a special	5506
consultant to conduct an independent investigation of an amusement	5507
ride accident. This consultant need not be in the civil service	5508
of the state, but shall have qualifications to conduct the	5509
investigation acceptable to the council.	5510

(E) The(1) Except as otherwise provided in division (E)(1)	5511
of this section, the department shall charge fees for eachthe	5512
following amusement ride annual permit, annual inspection,	5513
midseason operational inspection, and any reinspection, as follows	5514
fees:	5515

The go kart inspection fee is in addition to the inspection	5529
fee for the go kart track.	5530

The fees for an expedited inspection, failure to cancel a	5531
scheduled inspection, and failure to have an amusement ride ready	5532
for inspection do not apply to go karts.	5533

As used in division (E)(1) of this section, "expedited	5534
inspection" means an inspection of an amusement ride by the	5535
department not later than ten days after the owner of the	5536
amusement ride files an application for a permit under this	5537
section.	5538

(2) All permit fees, inspection fees, reinspection fees, and	5539
fines collected by the department under sections 1711.50 to	5540
1711.57 of the Revised Code shall be deposited in the state	5541
treasury to the credit of the amusement ride inspection fund,	5542
which is hereby created, and shall be used only for the purpose of	5543
administering and enforcing sections 1711.11 and 1711.50 to	5544
1711.57 of the Revised Code.	5545

(3) The owner of an amusement ride shall be required to pay a	5546
reinspection fee only if the reinspection was conducted at the	5547
owner's request under division (F) of this section, or if the	5548
reinspection is required by division (F) of this section because	5549
of an accident, or if the reinspection is required by division (F)	5550
of section 1711.55 of the Revised Code. If a reinspection is	5551
conducted at the request of the chief officer of a fair, festival,	5552
or event where the ride is operating, the reinspection fee shall	5553
be charged to the fair, festival, or event.	5554

(4) The rules adopted under division (B) of this section	5555
shall contain definitions ofdefine "kiddie rides," "roller	5556
coaster," "aerial lifts," "go karts," and "other rides" for	5557
purposes of determining the feefees under this division (E) of	5558
this section. The rules shall define "other rides" to include go	5559
kart tracks.	5560

(F) A reinspection of an amusement ride shall take place if	5561
an accident occurs, if the owner of the ride or the chief officer	5562
of the fair, festival, or event where the ride is operating	5563
requests a reinspection, or if the reinspection is required by	5564
division (F) of section 1711.55 of the Revised Code.	5565

(G) As a supplement to its annual inspection of a temporary	5566
amusement ride, the department may inspect the ride during each	5567
scheduled event, as listed in the schedule of events provided to	5568
the department by the owner pursuant to division (C) of section	5569
1711.55 of the Revised Code, at which the ride is operated in this	5570
state. These supplemental inspections are in addition to any	5571
other inspection or reinspection of the ride as may be required	5572
under sections 1711.50 to 1711.57 of the Revised Code, and the	5573
owner of the temporary amusement ride is not required to pay an	5574
inspection or reinspection fee for this supplemental inspection.	5575
Nothing in this division shall be construed to prohibit the owner	5576
of a temporary amusement ride having a valid permit to operate in	5577
this state from operating the ride at a scheduled event before the	5578
department conducts a supplemental inspection.	5579

(H) The department shallmay annually conduct a midseason	5580
operational inspection of every amusement ride upon which it	5581
conducts an annual inspection pursuant to division (A) of this	5582
section. The midseason operational inspection is in addition to	5583
any other inspection or reinspection of the amusement ride as may	5584
be required pursuant to sections 1711.50 to 1711.57 of the Revised	5585
Code. The owner of an amusement ride shall submit to the	5586
department, at the time determined by the department, the	5587
midseason operational inspection fee specified in division (E) of	5588
this section. The director, in accordance with Chapter 119. of	5589
the Revised Code, shall adopt rules specifying the time period	5590
during which the department shallwill conduct midseason	5591
operational inspections.	5592

Sec. 2113.031.  (A) As used in this section:

5593

(1) "Financial institution" has the same meaning as in	5594
section 5725.01 of the Revised Code. "Financial institution" also	5595
includes a credit union and a fiduciary that is not a trust	5596
company but that does trust business.	5597

(2) "Funeral and burial expenses" means whichever of the	5598
following applies:	5599

(a) The funeral and burial expenses of the decedent that are	5600
included in the bill of a funeral director;	5601

(b) The funeral expenses of the decedent that are not	5602
included in the bill of a funeral director and that have been	5603
approved by the probate court;	5604

(c) The funeral and burial expenses of the decedent that are	5605
described in divisions (A)(2)(a) and (b) of this section.	5606

(3) "Surviving spouse" means either of the following:

5607

(a) The surviving spouse of a decedent who died leaving the	5608
surviving spouse and no minor children;	5609

(b) The surviving spouse of a decedent who died leaving the	5610
surviving spouse and minor children, all of whom are children of	5611
the decedent and the surviving spouse.	5612

(B)(1) If the value of the assets of the decedent's estate	5613
does not exceed the lesser of two thousand dollars or the amount	5614
of the decedent's funeral and burial expenses, any person who is	5615
not a surviving spouse and who has paid or is obligated in writing	5616
to pay the decedent's funeral and burial expenses may apply to the	5617
probate court for an order granting a summary release from	5618
administration in accordance with this section.	5619

(2) If either of the following applies, the decedent's	5620
surviving spouse may apply to the probate court for an order	5621
granting a summary release from administration in accordance with	5622
this section:	5623

(a) The decedent's funeral and burial expenses have been	5624
prepaid, and the value of the assets of the decedent's estate does	5625
not exceed the total of the following items:	5626

(i) The allowance for support that is made under division	5627
(A) of section 2106.13 of the Revised Code to the surviving spouse	5628
and, if applicable, to the decedent's minor children and that is	5629
distributable in accordance with division (B)(1) or (2) of that	5630
section;	5631

(ii) An amount, not exceeding two thousand dollars, for the	5632
decedent's funeral and burial expenses referred to in division	5633
(A)(2)(c) of this section.	5634

(b) The decedent's funeral and burial expenses have not been	5635
prepaid, the decedent's surviving spouse has paid or is obligated	5636
in writing to pay the decedent's funeral and burial expenses, and	5637
the value of the assets of the decedent's estate does not exceed	5638
the total of the items referred to in divisions (B)(2)(a)(i) and	5639
(ii) of this section.	5640

(C) A probate court shall order a summary release from	5641
administration in connection with a decedent's estate only if the	5642
court finds that all of the following are satisfied:	5643

(1) A person described in division (B)(1) of this section is	5644
the applicant for a summary release from administration, and the	5645
value of the assets of the decedent's estate does not exceed the	5646
lesser of two thousand dollars or the amount of the decedent's	5647
funeral and burial expenses, or the applicant for a summary	5648
release from administration is the decedent's surviving spouse,	5649
and the circumstances described in division (B)(2)(a) or (b) of	5650
this section apply.	5651

(2) The application for a summary release from	5652
administration does all of the following:	5653

(a) Describes all assets of the decedent's estate that are	5654
known to the applicant;	5655

(b) Is in the form that the supreme court prescribes	5656
pursuant to its powers of superintendence under Section 5 of	5657
Article IV, Ohio Constitution, and is consistent with the	5658
requirements of this division;	5659

(c) Has been signed and acknowledged by the applicant in the	5660
presence of a notary public or a deputy clerk of the probate	5661
court;	5662

(d) Sets forth the following information if the decedent's	5663
estate includes a described type of asset:	5664

(i) If the decedent's estate includes a motor vehicle, the	5665
motor vehicle's year, make, model, body type, manufacturer's	5666
vehicle identification number, certificate of title number, and	5667
date of death value;	5668

(ii) If the decedent's estate includes an account maintained	5669
by a financial institution, that institution's name and the	5670
account's complete identifying number and date of death balance;	5671

(iii) If the decedent's estate includes one or more shares	5672
of stock or bonds, the total number of the shares and bonds and	5673
their total date of death value and, for each share or bond, its	5674
serial number, the name of its issuer, its date of death value,	5675
and, if any, the name and address of its transfer agent.	5676

(3) The application for a summary release from	5677
administration is accompanied by all of the following that apply:	5678

(a) A receipt, contract, or other document that confirms the	5679
applicant's payment or obligation to pay the decedent's funeral	5680
and burial expenses or, if applicable in the case of the	5681
decedent's surviving spouse, the prepayment of the decedent's	5682
funeral and burial expenses;	5683

(b) An application for a certificate of transfer as	5684
described in section 2113.61 of the Revised Code, if an interest	5685
in real property is included in the assets of the decedent's	5686
estate;	5687

(c) The fee required by division (A)(59) of section 2101.16	5688
of the Revised Code.	5689

(4) At the time of its determination on the application,	5690
there are no pending proceedings for the administration of the	5691
decedent's estate and no pending proceedings for relief of the	5692
decedent's estate from administration under section 2113.03 of the	5693
Revised Code.	5694

(5) At the time of its determination on the application,	5695
there are no known assets of the decedent's estate other than the	5696
assets described in the application.	5697

(D) If the probate court determines that the requirements of	5698
division (C) of this section are satisfied, the probate court	5699
shall issue an order that grants a summary release from	5700
administration in connection with the decedent's estate. The	5701
order has, and shall specify that it has, all of the following	5702
effects:	5703

(1) It relieves the decedent's estate from administration.

5704

(2) It directs the delivery to the applicant of the	5705
decedent's personal property together with the title to that	5706
property.	5707

(3) It directs the transfer to the applicant of the title to	5708
any interests in real property included in the decedent's estate.	5709

(4) It eliminates the duty of all persons to file an estate	5710
tax return and certificate under division (A) of section 5731.21	5711
of the Revised Code in connection with the decedent's estate.	5712

(5) It eliminates the need for a financial institution,	5713
corporation, or other entity or person referred to in any	5714
provision of divisions (A) to (F) of section 5731.39 of the	5715
Revised Code to obtain, as otherwise would be required by any of	5716
those divisions, the written consent of the tax commissioner prior	5717
to the delivery, transfer, or payment to the applicant of an asset	5718
of the decedent's estate.	5719

(E) A certified copy of an order that grants a summary	5720
release from administration together with a certified copy of the	5721
application for that order constitutes sufficient authority for a	5722
financial institution, corporation, or other entity or person	5723
referred to in divisions (A) to (F) of section 5731.39 of the	5724
Revised Code or for a clerk of a court of common pleas to transfer	5725
title to an asset of the decedent's estate to the applicant for	5726
the summary release from administration.	5727

(F) This section does not affect the ability of qualified	5728
persons to file an application to relieve an estate from	5729
administration under section 2113.03 of the Revised Code or to	5730
file an application for the grant of letters testamentary or	5731
letters of administration in connection with the decedent's	5732
estate.	5733

Sec. 2901.01.  (A) As used in the Revised Code:

5734

(1) "Force" means any violence, compulsion, or constraint	5735
physically exerted by any means upon or against a person or thing.	5736

(2) "Deadly force" means any force that carries a	5737
substantial risk that it will proximately result in the death of	5738
any person.	5739

(3) "Physical harm to persons" means any injury, illness, or	5740
other physiological impairment, regardless of its gravity or	5741
duration.	5742

(4) "Physical harm to property" means any tangible or	5743
intangible damage to property that, in any degree, results in loss	5744
to its value or interferes with its use or enjoyment. "Physical	5745
harm to property" does not include wear and tear occasioned by	5746
normal use.	5747

(5) "Serious physical harm to persons" means any of the	5748
following:	5749

(a) Any mental illness or condition of such gravity as would	5750
normally require hospitalization or prolonged psychiatric	5751
treatment;	5752

(b) Any physical harm that carries a substantial risk of	5753
death;	5754

(c) Any physical harm that involves some permanent	5755
incapacity, whether partial or total, or that involves some	5756
temporary, substantial incapacity;	5757

(d) Any physical harm that involves some permanent	5758
disfigurement or that involves some temporary, serious	5759
disfigurement;	5760

(e) Any physical harm that involves acute pain of such	5761
duration as to result in substantial suffering or that involves	5762
any degree of prolonged or intractable pain.	5763

(6) "Serious physical harm to property" means any physical	5764
harm to property that does either of the following:	5765

(a) Results in substantial loss to the value of the property	5766
or requires a substantial amount of time, effort, or money to	5767
repair or replace;	5768

(b) Temporarily prevents the use or enjoyment of the	5769
property or substantially interferes with its use or enjoyment for	5770
an extended period of time.	5771

(7) "Risk" means a significant possibility, as contrasted	5772
with a remote possibility, that a certain result may occur or that	5773
certain circumstances may exist.	5774

(8) "Substantial risk" means a strong possibility, as	5775
contrasted with a remote or significant possibility, that a	5776
certain result may occur or that certain circumstances may exist.	5777

(9) "Offense of violence" means any of the following:

5778

(a) A violation of section 2903.01, 2903.02, 2903.03,	5779
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.21, 2903.211,	5780
2903.22, 2905.01, 2905.02, 2905.11, 2907.02, 2907.03, 2907.05,	5781
2909.02, 2909.03, 2909.24, 2911.01, 2911.02, 2911.11, 2917.01,	5782
2917.02, 2917.03, 2917.31, 2919.25, 2921.03, 2921.04, 2921.34, or	5783
2923.161, of division (A)(1), (2), or (3) of section 2911.12, or	5784
of division (B)(1), (2), (3), or (4) of section 2919.22 of the	5785
Revised Code or felonious sexual penetration in violation of	5786
former section 2907.12 of the Revised Code;	5787

(b) A violation of an existing or former municipal ordinance	5788
or law of this or any other state or the United States,	5789
substantially equivalent to any section, division, or offense	5790
listed in division (A)(9)(a) of this section;	5791

(c) An offense, other than a traffic offense, under an	5792
existing or former municipal ordinance or law of this or any other	5793
state or the United States, committed purposely or knowingly, and	5794
involving physical harm to persons or a risk of serious physical	5795
harm to persons;	5796

(d) A conspiracy or attempt to commit, or complicity in	5797
committing, any offense under division (A)(9)(a), (b), or (c) of	5798
this section.	5799

(10)(a) "Property" means any property, real or personal,	5800
tangible or intangible, and any interest or license in that	5801
property. "Property" includes, but is not limited to, cable	5802
television service, other telecommunications service,	5803
telecommunications devices, information service, computers, data,	5804
computer software, financial instruments associated with	5805
computers, other documents associated with computers, or copies of	5806
the documents, whether in machine or human readable form, trade	5807
secrets, trademarks, copyrights, patents, and property protected	5808
by a trademark, copyright, or patent. "Financial instruments	5809
associated with computers" include, but are not limited to,	5810
checks, drafts, warrants, money orders, notes of indebtedness,	5811
certificates of deposit, letters of credit, bills of credit or	5812
debit cards, financial transaction authorization mechanisms,	5813
marketable securities, or any computer system representations of	5814
any of them.	5815

(b) As used in division (A)(10) of this section, "trade	5816
secret" has the same meaning as in section 1333.61 of the Revised	5817
Code, and "telecommunications service" and "information service"	5818
have the same meanings as in section 2913.01 of the Revised Code.	5819

(c) As used in divisions (A)(10) and (13) of this section,	5820
"cable television service," "computer," "computer software,"	5821
"computer system," "computer network," "data," and	5822
"telecommunications device" have the same meanings as in section	5823
2913.01 of the Revised Code.	5824

(11) "Law enforcement officer" means any of the following:

5825

(a) A sheriff, deputy sheriff, constable, police officer of	5826
a township or joint township police district, marshal, deputy	5827
marshal, municipal police officer, member of a police force	5828
employed by a metropolitan housing authority under division (D) of	5829
section 3735.31 of the Revised Code, or state highway patrol	5830
trooper;	5831

(b) An officer, agent, or employee of the state or any of	5832
its agencies, instrumentalities, or political subdivisions, upon	5833
whom, by statute, a duty to conserve the peace or to enforce all	5834
or certain laws is imposed and the authority to arrest violators	5835
is conferred, within the limits of that statutory duty and	5836
authority;	5837

(c) A mayor, in the mayor's capacity as chief conservator of	5838
the peace within the mayor's municipal corporation;	5839

(d) A member of an auxiliary police force organized by	5840
county, township, or municipal law enforcement authorities, within	5841
the scope of the member's appointment or commission;	5842

(e) A person lawfully called pursuant to section 311.07 of	5843
the Revised Code to aid a sheriff in keeping the peace, for the	5844
purposes and during the time when the person is called;	5845

(f) A person appointed by a mayor pursuant to section 737.01	5846
of the Revised Code as a special patrolling officer during riot or	5847
emergency, for the purposes and during the time when the person is	5848
appointed;	5849

(g) A member of the organized militia of this state or the	5850
armed forces of the United States, lawfully called to duty to aid	5851
civil authorities in keeping the peace or protect against domestic	5852
violence;	5853

(h) A prosecuting attorney, assistant prosecuting attorney,	5854
secret service officer, or municipal prosecutor;	5855

(i) An OhioA veterans' home police officer appointed under	5856
section 5907.02 of the Revised Code;	5857

(j) A member of a police force employed by a regional	5858
transit authority under division (Y) of section 306.35 of the	5859
Revised Code;	5860

(k) A special police officer employed by a port authority	5861
under section 4582.04 or 4582.28 of the Revised Code;	5862

(l) The house sergeant at arms if the house sergeant at arms	5863
has arrest authority pursuant to division (E)(1) of section	5864
101.311 of the Revised Code and an assistant house sergeant at	5865
arms.	5866

(12) "Privilege" means an immunity, license, or right	5867
conferred by law, bestowed by express or implied grant, arising	5868
out of status, position, office, or relationship, or growing out	5869
of necessity.	5870

(13) "Contraband" means any property described in the	5871
following categories:	5872

(a) Property that in and of itself is unlawful for a person	5873
to acquire or possess;	5874

(b) Property that is not in and of itself unlawful for a	5875
person to acquire or possess, but that has been determined by a	5876
court of this state, in accordance with law, to be contraband	5877
because of its use in an unlawful activity or manner, of its	5878
nature, or of the circumstances of the person who acquires or	5879
possesses it, including, but not limited to, goods and personal	5880
property described in division (D) of section 2913.34 of the	5881
Revised Code;	5882

(c) Property that is specifically stated to be contraband by	5883
a section of the Revised Code or by an ordinance, regulation, or	5884
resolution;	5885

(d) Property that is forfeitable pursuant to a section of	5886
the Revised Code, or an ordinance, regulation, or resolution,	5887
including, but not limited to, forfeitable firearms, dangerous	5888
ordnance, obscene materials, and goods and personal property	5889
described in division (D) of section 2913.34 of the Revised Code;	5890

(e) Any controlled substance, as defined in section 3719.01	5891
of the Revised Code, or any device, paraphernalia, money as	5892
defined in section 1301.01 of the Revised Code, or other means of	5893
exchange that has been, is being, or is intended to be used in an	5894
attempt or conspiracy to violate, or in a violation of, Chapter	5895
2925. or 3719. of the Revised Code;	5896

(f) Any gambling device, paraphernalia, money as defined in	5897
section 1301.01 of the Revised Code, or other means of exchange	5898
that has been, is being, or is intended to be used in an attempt	5899
or conspiracy to violate, or in the violation of, Chapter 2915. of	5900
the Revised Code;	5901

(g) Any equipment, machine, device, apparatus, vehicle,	5902
vessel, container, liquid, or substance that has been, is being,	5903
or is intended to be used in an attempt or conspiracy to violate,	5904
or in the violation of, any law of this state relating to alcohol	5905
or tobacco;	5906

(h) Any personal property that has been, is being, or is	5907
intended to be used in an attempt or conspiracy to commit, or in	5908
the commission of, any offense or in the transportation of the	5909
fruits of any offense;	5910

(i) Any property that is acquired through the sale or other	5911
transfer of contraband or through the proceeds of contraband,	5912
other than by a court or a law enforcement agency acting within	5913
the scope of its duties;	5914

(j) Any computer, computer system, computer network,	5915
computer software, or other telecommunications device that is used	5916
in a conspiracy to commit, an attempt to commit, or the commission	5917
of any offense, if the owner of the computer, computer system,	5918
computer network, computer software, or other telecommunications	5919
device is convicted of or pleads guilty to the offense in which it	5920
is used;	5921

(k) Any property that is material support or resources and	5922
that has been, is being, or is intended to be used in an attempt	5923
or conspiracy to violate, or in the violation of, section 2909.22,	5924
2909.23, or 2909.24 of the Revised Code or of section 2921.32 of	5925
the Revised Code when the offense or act committed by the person	5926
aided or to be aided as described in that section is an act of	5927
terrorism. As used in division (A)(13)(k) of this section,	5928
"material support or resources" and "act of terrorism" have the	5929
same meanings as in section 2909.21 of the Revised Code.	5930

(14) A person is "not guilty by reason of insanity" relative	5931
to a charge of an offense only if the person proves, in the manner	5932
specified in section 2901.05 of the Revised Code, that at the time	5933
of the commission of the offense, the person did not know, as a	5934
result of a severe mental disease or defect, the wrongfulness of	5935
the person's acts.	5936

(B)(1)(a) Subject to division (B)(2) of this section, as	5937
used in any section contained in Title XXIX of the Revised Code	5938
that sets forth a criminal offense, "person" includes all of the	5939
following:	5940

(i) An individual, corporation, business trust, estate,	5941
trust, partnership, and association;	5942

(ii) An unborn human who is viable.

5943

(b) As used in any section contained in Title XXIX of the	5944
Revised Code that does not set forth a criminal offense, "person"	5945
includes an individual, corporation, business trust, estate,	5946
trust, partnership, and association.	5947

(c) As used in division (B)(1)(a) of this section:

5948

(i) "Unborn human" means an individual organism of the	5949
species Homo sapiens from fertilization until live birth.	5950

(ii) "Viable" means the stage of development of a human	5951
fetus at which there is a realistic possibility of maintaining and	5952
nourishing of a life outside the womb with or without temporary	5953
artificial life-sustaining support.	5954

(2) Notwithstanding division (B)(1)(a) of this section, in	5955
no case shall the portion of the definition of the term "person"	5956
that is set forth in division (B)(1)(a)(ii) of this section be	5957
applied or construed in any section contained in Title XXIX of the	5958
Revised Code that sets forth a criminal offense in any of the	5959
following manners:	5960

(a) Except as otherwise provided in division (B)(2)(a) of	5961
this section, in a manner so that the offense prohibits or is	5962
construed as prohibiting any pregnant woman or her physician from	5963
performing an abortion with the consent of the pregnant woman,	5964
with the consent of the pregnant woman implied by law in a medical	5965
emergency, or with the approval of one otherwise authorized by law	5966
to consent to medical treatment on behalf of the pregnant woman.	5967
An abortion that violates the conditions described in the	5968
immediately preceding sentence may be punished as a violation of	5969
section 2903.01, 2903.02, 2903.03, 2903.04, 2903.05, 2903.06,	5970
2903.08, 2903.11, 2903.12, 2903.13, 2903.14, 2903.21, or 2903.22	5971
of the Revised Code, as applicable. An abortion that does not	5972
violate the conditions described in the second immediately	5973
preceding sentence, but that does violate section 2919.12,	5974
division (B) of section 2919.13, or section 2919.151, 2919.17, or	5975
2919.18 of the Revised Code, may be punished as a violation of	5976
section 2919.12, division (B) of section 2919.13, or section	5977
2919.151, 2919.17, or 2919.18 of the Revised Code, as applicable.	5978
Consent is sufficient under this division if it is of the type	5979
otherwise adequate to permit medical treatment to the pregnant	5980
woman, even if it does not comply with section 2919.12 of the	5981
Revised Code.	5982

(b) In a manner so that the offense is applied or is	5983
construed as applying to a woman based on an act or omission of	5984
the woman that occurs while she is or was pregnant and that	5985
results in any of the following:	5986

(i) Her delivery of a stillborn baby;

5987

(ii) Her causing, in any other manner, the death in utero of	5988
a viable, unborn human that she is carrying;	5989

(iii) Her causing the death of her child who is born alive	5990
but who dies from one or more injuries that are sustained while	5991
the child is a viable, unborn human;	5992

(iv) Her causing her child who is born alive to sustain one	5993
or more injuries while the child is a viable, unborn human;	5994

(v) Her causing, threatening to cause, or attempting to	5995
cause, in any other manner, an injury, illness, or other	5996
physiological impairment, regardless of its duration or gravity,	5997
or a mental illness or condition, regardless of its duration or	5998
gravity, to a viable, unborn human that she is carrying.	5999

(C) As used in Title XXIX of the Revised Code:

6000

(1) "School safety zone" consists of a school, school	6001
building, school premises, school activity, and school bus.	6002

(2) "School," "school building," and "school premises" have	6003
the same meanings as in section 2925.01 of the Revised Code.	6004

(3) "School activity" means any activity held under the	6005
auspices of a board of education of a city, local, exempted	6006
village, joint vocational, or cooperative education school	6007
district, a governing board of an educational service center, or	6008
the governing body of a school for which the state board of	6009
education prescribes minimum standards under section 3301.07 of	6010
the Revised Code.	6011

(4) "School bus" has the same meaning as in section 4511.01	6012
of the Revised Code.	6013

Sec. 2921.51.  (A) As used in this section:

6014

(1) "Peace officer" means a sheriff, deputy sheriff,	6015
marshal, deputy marshal, member of the organized police department	6016
of a municipal corporation, or township constable, who is employed	6017
by a political subdivision of this state, a member of a police	6018
force employed by a metropolitan housing authority under division	6019
(D) of section 3735.31 of the Revised Code, a member of a police	6020
force employed by a regional transit authority under division (Y)	6021
of section 306.35 of the Revised Code, a state university law	6022
enforcement officer appointed under section 3345.04 of the Revised	6023
Code, an Ohioa veterans' home police officer appointed under	6024
section 5907.02 of the Revised Code, a special police officer	6025
employed by a port authority under section 4582.04 or 4582.28 of	6026
the Revised Code, or a state highway patrol trooper and whose	6027
primary duties are to preserve the peace, to protect life and	6028
property, and to enforce the laws, ordinances, or rules of the	6029
state or any of its political subdivisions.	6030

(2) "Private police officer" means any security guard,	6031
special police officer, private detective, or other person who is	6032
privately employed in a police capacity.	6033

(3) "Impersonate" means to act the part of, assume the	6034
identity of, wear the uniform or any part of the uniform of, or	6035
display the identification of a particular person or of a member	6036
of a class of persons with purpose to make another person believe	6037
that the actor is that particular person or is a member of that	6038
class of persons.	6039

(B) No person shall impersonate a peace officer or a private	6040
police officer.	6041

(C) No person, by impersonating a peace officer or a private	6042
police officer, shall arrest or detain any person, search any	6043
person, or search the property of any person.	6044

(D) No person, with purpose to commit or facilitate the	6045
commission of an offense, shall impersonate a peace officer, a	6046
private police officer, or an officer, agent, or employee of the	6047
state.	6048

(E) No person shall commit a felony while impersonating a	6049
peace officer, a private police officer, or an officer, agent, or	6050
employee of the state.	6051

(F) It is an affirmative defense to a charge under division	6052
(B) of this section that the impersonation of the peace officer	6053
was for a lawful purpose.	6054

(G) Whoever violates division (B) of this section is guilty	6055
of a misdemeanor of the fourth degree. Whoever violates division	6056
(C) or (D) of this section is guilty of a misdemeanor of the first	6057
degree. If the purpose of a violation of division (D) of this	6058
section is to commit or facilitate the commission of a felony, a	6059
violation of division (D) is a felony of the fourth degree.	6060
Whoever violates division (E) of this section is guilty of a	6061
felony of the third degree.	6062

Sec. 2935.01.  As used in this chapter:

6063

(A) "Magistrate" has the same meaning as in section 2931.01	6064
of the Revised Code.	6065

(B) "Peace officer" includes, except as provided in section	6066
2935.081 of the Revised Code, a sheriff; deputy sheriff; marshal;	6067
deputy marshal; member of the organized police department of any	6068
municipal corporation, including a member of the organized police	6069
department of a municipal corporation in an adjoining state	6070
serving in Ohio under a contract pursuant to section 737.04 of the	6071
Revised Code; member of a police force employed by a metropolitan	6072
housing authority under division (D) of section 3735.31 of the	6073
Revised Code; member of a police force employed by a regional	6074
transit authority under division (Y) of section 306.05 of the	6075
Revised Code; state university law enforcement officer appointed	6076
under section 3345.04 of the Revised Code; enforcement agent of	6077
the department of public safety designated under section 5502.14	6078
of the Revised Code; employee of the department of taxation to	6079
whom investigation powers have been delegated under section	6080
5743.45 of the Revised Code; employee of the department of natural	6081
resources who is a natural resources law enforcement staff officer	6082
designated pursuant to section 1501.013 of the Revised Code, a	6083
forest officer designated pursuant to section 1503.29 of the	6084
Revised Code, a preserve officer designated pursuant to section	6085
1517.10 of the Revised Code, a wildlife officer designated	6086
pursuant to section 1531.13 of the Revised Code, a park officer	6087
designated pursuant to section 1541.10 of the Revised Code, or a	6088
state watercraft officer designated pursuant to section 1547.521	6089
of the Revised Code; individual designated to perform law	6090
enforcement duties under section 511.232, 1545.13, or 6101.75 of	6091
the Revised Code; Ohio veterans' home police officer appointed	6092
under section 5907.02 of the Revised Code; special police officer	6093
employed by a port authority under section 4582.04 or 4582.28 of	6094
the Revised Code; police constable of any township; police	6095
officer of a township or joint township police district; the house	6096
sergeant at arms if the house sergeant at arms has arrest	6097
authority pursuant to division (E)(1) of section 101.311 of the	6098
Revised Code; and an assistant house sergeant at arms; officer or	6099
employee of the bureau of criminal identification and	6100
investigation established pursuant to section 109.51 of the	6101
Revised Code who has been awarded a certificate by the executive	6102
director of the Ohio peace officer training commission attesting	6103
to the officer's or employee's satisfactory completion of an	6104
approved state, county, municipal, or department of natural	6105
resources peace officer basic training program and who is	6106
providing assistance upon request to a law enforcement officer or	6107
emergency assistance to a peace officer pursuant to section 109.54	6108
or 109.541 of the Revised Code; and, for the purpose of arrests	6109
within those areas, and for the purposes of Chapter 5503. of the	6110
Revised Code, and the filing of and service of process relating to	6111
those offenses witnessed or investigated by them, includes the	6112
superintendent and troopers of the state highway patrol.	6113

(C) "Prosecutor" includes the county prosecuting attorney	6114
and any assistant prosecutor designated to assist the county	6115
prosecuting attorney, and, in the case of courts inferior to	6116
courts of common pleas, includes the village solicitor, city	6117
director of law, or similar chief legal officer of a municipal	6118
corporation, any such officer's assistants, or any attorney	6119
designated by the prosecuting attorney of the county to appear for	6120
the prosecution of a given case.	6121

(D) "Offense," except where the context specifically	6122
indicates otherwise, includes felonies, misdemeanors, and	6123
violations of ordinances of municipal corporations and other	6124
public bodies authorized by law to adopt penal regulations.	6125

Sec. 2935.03.  (A)(1) A sheriff, deputy sheriff, marshal,	6126
deputy marshal, municipal police officer, township constable,	6127
police officer of a township or joint township police district,	6128
member of a police force employed by a metropolitan housing	6129
authority under division (D) of section 3735.31 of the Revised	6130
Code, member of a police force employed by a regional transit	6131
authority under division (Y) of section 306.35 of the Revised	6132
Code, state university law enforcement officer appointed under	6133
section 3345.04 of the Revised Code, Ohio veterans' home police	6134
officer appointed under section 5907.02 of the Revised Code, or	6135
special police officer employed by a port authority under section	6136
4582.04 or 4582.28 of the Revised Code shall arrest and detain,	6137
until a warrant can be obtained, a person found violating, within	6138
the limits of the political subdivision, metropolitan housing	6139
authority housing project, regional transit authority facilities	6140
or areas of a municipal corporation that have been agreed to by a	6141
regional transit authority and a municipal corporation located	6142
within its territorial jurisdiction, college, university, Ohio	6143
veterans' home operated under Chapter 5907. of the Revised Code,	6144
or port authority in which the peace officer is appointed,	6145
employed, or elected, a law of this state, an ordinance of a	6146
municipal corporation, or a resolution of a township.	6147

(2) A peace officer of the department of natural resources	6148
or an individual designated to perform law enforcement duties	6149
under section 511.232, 1545.13, or 6101.75 of the Revised Code	6150
shall arrest and detain, until a warrant can be obtained, a person	6151
found violating, within the limits of the peace officer's or	6152
individual's territorial jurisdiction, a law of this state.	6153

(3) The house sergeant at arms if the house sergeant at arms	6154
has arrest authority pursuant to division (E)(1) of section	6155
101.311 of the Revised Code and an assistant house sergeant at	6156
arms shall arrest and detain, until a warrant can be obtained, a	6157
person found violating, within the limits of the sergeant at arm's	6158
arms's or assistant sergeant at arm'sarms's territorial	6159
jurisdiction specified in division (D)(1)(a) of section 101.311 of	6160
the Revised Code or while providing security pursuant to division	6161
(D)(1)(f) of section 101.311 of the Revised Code, a law of this	6162
state, an ordinance of a municipal corporation, or a resolution of	6163
a township.	6164

(B)(1) When there is reasonable ground to believe that an	6165
offense of violence, the offense of criminal child enticement as	6166
defined in section 2905.05 of the Revised Code, the offense of	6167
public indecency as defined in section 2907.09 of the Revised	6168
Code, the offense of domestic violence as defined in section	6169
2919.25 of the Revised Code, the offense of violating a protection	6170
order as defined in section 2919.27 of the Revised Code, the	6171
offense of menacing by stalking as defined in section 2903.211 of	6172
the Revised Code, the offense of aggravated trespass as defined in	6173
section 2911.211 of the Revised Code, a theft offense as defined	6174
in section 2913.01 of the Revised Code, or a felony drug abuse	6175
offense as defined in section 2925.01 of the Revised Code, has	6176
been committed within the limits of the political subdivision,	6177
metropolitan housing authority housing project, regional transit	6178
authority facilities or those areas of a municipal corporation	6179
that have been agreed to by a regional transit authority and a	6180
municipal corporation located within its territorial jurisdiction,	6181
college, university, Ohio veterans' home operated under Chapter	6182
5907. of the Revised Code, or port authority in which the peace	6183
officer is appointed, employed, or elected or within the limits of	6184
the territorial jurisdiction of the peace officer, a peace officer	6185
described in division (A) of this section may arrest and detain	6186
until a warrant can be obtained any person who the peace officer	6187
has reasonable cause to believe is guilty of the violation.	6188

(2) For purposes of division (B)(1) of this section, the	6189
execution of any of the following constitutes reasonable ground to	6190
believe that the offense alleged in the statement was committed	6191
and reasonable cause to believe that the person alleged in the	6192
statement to have committed the offense is guilty of the	6193
violation:	6194

(a) A written statement by a person alleging that an alleged	6195
offender has committed the offense of menacing by stalking or	6196
aggravated trespass;	6197

(b) A written statement by the administrator of the	6198
interstate compact on mental health appointed under section	6199
5119.51 of the Revised Code alleging that a person who had been	6200
hospitalized, institutionalized, or confined in any facility under	6201
an order made pursuant to or under authority of section 2945.37,	6202
2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or 2945.402 of the	6203
Revised Code has escaped from the facility, from confinement in a	6204
vehicle for transportation to or from the facility, or from	6205
supervision by an employee of the facility that is incidental to	6206
hospitalization, institutionalization, or confinement in the	6207
facility and that occurs outside of the facility, in violation of	6208
section 2921.34 of the Revised Code;	6209

(c) A written statement by the administrator of any facility	6210
in which a person has been hospitalized, institutionalized, or	6211
confined under an order made pursuant to or under authority of	6212
section 2945.37, 2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or	6213
2945.402 of the Revised Code alleging that the person has escaped	6214
from the facility, from confinement in a vehicle for	6215
transportation to or from the facility, or from supervision by an	6216
employee of the facility that is incidental to hospitalization,	6217
institutionalization, or confinement in the facility and that	6218
occurs outside of the facility, in violation of section 2921.34 of	6219
the Revised Code.	6220

(3)(a) For purposes of division (B)(1) of this section, a	6221
peace officer described in division (A) of this section has	6222
reasonable grounds to believe that the offense of domestic	6223
violence or the offense of violating a protection order has been	6224
committed and reasonable cause to believe that a particular person	6225
is guilty of committing the offense if any of the following	6226
occurs:	6227

(i) A person executes a written statement alleging that the	6228
person in question has committed the offense of domestic violence	6229
or the offense of violating a protection order against the person	6230
who executes the statement or against a child of the person who	6231
executes the statement.	6232

(ii) No written statement of the type described in division	6233
(B)(3)(a)(i) of this section is executed, but the peace officer,	6234
based upon the peace officer's own knowledge and observation of	6235
the facts and circumstances of the alleged incident of the offense	6236
of domestic violence or the alleged incident of the offense of	6237
violating a protection order or based upon any other information,	6238
including, but not limited to, any reasonably trustworthy	6239
information given to the peace officer by the alleged victim of	6240
the alleged incident of the offense or any witness of the alleged	6241
incident of the offense, concludes that there are reasonable	6242
grounds to believe that the offense of domestic violence or the	6243
offense of violating a protection order has been committed and	6244
reasonable cause to believe that the person in question is guilty	6245
of committing the offense.	6246

(iii) No written statement of the type described in division	6247
(B)(3)(a)(i) of this section is executed, but the peace officer	6248
witnessed the person in question commit the offense of domestic	6249
violence or the offense of violating a protection order.	6250

(b) If pursuant to division (B)(3)(a) of this section a	6251
peace officer has reasonable grounds to believe that the offense	6252
of domestic violence or the offense of violating a protection	6253
order has been committed and reasonable cause to believe that a	6254
particular person is guilty of committing the offense, it is the	6255
preferred course of action in this state that the officer arrest	6256
and detain that person pursuant to division (B)(1) of this section	6257
until a warrant can be obtained.	6258

If pursuant to division (B)(3)(a) of this section a peace	6259
officer has reasonable grounds to believe that the offense of	6260
domestic violence or the offense of violating a protection order	6261
has been committed and reasonable cause to believe that family or	6262
household members have committed the offense against each other,	6263
it is the preferred course of action in this state that the	6264
officer, pursuant to division (B)(1) of this section, arrest and	6265
detain until a warrant can be obtained the family or household	6266
member who committed the offense and whom the officer has	6267
reasonable cause to believe is the primary physical aggressor.	6268
There is no preferred course of action in this state regarding any	6269
other family or household member who committed the offense and	6270
whom the officer does not have reasonable cause to believe is the	6271
primary physical aggressor, but, pursuant to division (B)(1) of	6272
this section, the peace officer may arrest and detain until a	6273
warrant can be obtained any other family or household member who	6274
committed the offense and whom the officer does not have	6275
reasonable cause to believe is the primary physical aggressor.	6276

(c) If a peace officer described in division (A) of this	6277
section does not arrest and detain a person whom the officer has	6278
reasonable cause to believe committed the offense of domestic	6279
violence or the offense of violating a protection order when it is	6280
the preferred course of action in this state pursuant to division	6281
(B)(3)(b) of this section that the officer arrest that person, the	6282
officer shall articulate in the written report of the incident	6283
required by section 2935.032 of the Revised Code a clear statement	6284
of the officer's reasons for not arresting and detaining that	6285
person until a warrant can be obtained.	6286

(d) In determining for purposes of division (B)(3)(b) of	6287
this section which family or household member is the primary	6288
physical aggressor in a situation in which family or household	6289
members have committed the offense of domestic violence or the	6290
offense of violating a protection order against each other, a	6291
peace officer described in division (A) of this section, in	6292
addition to any other relevant circumstances, should consider all	6293
of the following:	6294

(i) Any history of domestic violence or of any other violent	6295
acts by either person involved in the alleged offense that the	6296
officer reasonably can ascertain;	6297

(ii) If violence is alleged, whether the alleged violence	6298
was caused by a person acting in self-defense;	6299

(iii) Each person's fear of physical harm, if any, resulting	6300
from the other person's threatened use of force against any person	6301
or resulting from the other person's use or history of the use of	6302
force against any person, and the reasonableness of that fear;	6303

(iv) The comparative severity of any injuries suffered by	6304
the persons involved in the alleged offense.	6305

(e)(i) A peace officer described in division (A) of this	6306
section shall not require, as a prerequisite to arresting or	6307
charging a person who has committed the offense of domestic	6308
violence or the offense of violating a protection order, that the	6309
victim of the offense specifically consent to the filing of	6310
charges against the person who has committed the offense or sign a	6311
complaint against the person who has committed the offense.	6312

(ii) If a person is arrested for or charged with committing	6313
the offense of domestic violence or the offense of violating a	6314
protection order and if the victim of the offense does not	6315
cooperate with the involved law enforcement or prosecuting	6316
authorities in the prosecution of the offense or, subsequent to	6317
the arrest or the filing of the charges, informs the involved law	6318
enforcement or prosecuting authorities that the victim does not	6319
wish the prosecution of the offense to continue or wishes to drop	6320
charges against the alleged offender relative to the offense, the	6321
involved prosecuting authorities, in determining whether to	6322
continue with the prosecution of the offense or whether to dismiss	6323
charges against the alleged offender relative to the offense and	6324
notwithstanding the victim's failure to cooperate or the victim's	6325
wishes, shall consider all facts and circumstances that are	6326
relevant to the offense, including, but not limited to, the	6327
statements and observations of the peace officers who responded to	6328
the incident that resulted in the arrest or filing of the charges	6329
and of all witnesses to that incident.	6330

(f) In determining pursuant to divisions (B)(3)(a) to (g) of	6331
this section whether to arrest a person pursuant to division	6332
(B)(1) of this section, a peace officer described in division (A)	6333
of this section shall not consider as a factor any possible	6334
shortage of cell space at the detention facility to which the	6335
person will be taken subsequent to the person's arrest or any	6336
possibility that the person's arrest might cause, contribute to,	6337
or exacerbate overcrowding at that detention facility or at any	6338
other detention facility.	6339

(g) If a peace officer described in division (A) of this	6340
section intends pursuant to divisions (B)(3)(a) to (g) of this	6341
section to arrest a person pursuant to division (B)(1) of this	6342
section and if the officer is unable to do so because the person	6343
is not present, the officer promptly shall seek a warrant for the	6344
arrest of the person.	6345

(h) If a peace officer described in division (A) of this	6346
section responds to a report of an alleged incident of the offense	6347
of domestic violence or an alleged incident of the offense of	6348
violating a protection order and if the circumstances of the	6349
incident involved the use or threatened use of a deadly weapon or	6350
any person involved in the incident brandished a deadly weapon	6351
during or in relation to the incident, the deadly weapon that was	6352
used, threatened to be used, or brandished constitutes contraband,	6353
and, to the extent possible, the officer shall seize the deadly	6354
weapon as contraband pursuant to section 2933.43 of the Revised	6355
Code. Upon the seizure of a deadly weapon pursuant to division	6356
(B)(3)(h) of this section, section 2933.43 of the Revised Code	6357
shall apply regarding the treatment and disposition of the deadly	6358
weapon. For purposes of that section, the "underlying criminal	6359
offense" that was the basis of the seizure of a deadly weapon	6360
under division (B)(3)(h) of this section and to which the deadly	6361
weapon had a relationship is any of the following that is	6362
applicable:	6363

(i) The alleged incident of the offense of domestic violence	6364
or the alleged incident of the offense of violating a protection	6365
order to which the officer who seized the deadly weapon responded;	6366

(ii) Any offense that arose out of the same facts and	6367
circumstances as the report of the alleged incident of the offense	6368
of domestic violence or the alleged incident of the offense of	6369
violating a protection order to which the officer who seized the	6370
deadly weapon responded.	6371

(4) If, in the circumstances described in divisions	6372
(B)(3)(a) to (g) of this section, a peace officer described in	6373
division (A) of this section arrests and detains a person pursuant	6374
to division (B)(1) of this section, or if, pursuant to division	6375
(B)(3)(h) of this section, a peace officer described in division	6376
(A) of this section seizes a deadly weapon, the officer, to the	6377
extent described in and in accordance with section 9.86 or 2744.03	6378
of the Revised Code, is immune in any civil action for damages for	6379
injury, death, or loss to person or property that arises from or	6380
is related to the arrest and detention or the seizure.	6381

(C) When there is reasonable ground to believe that a	6382
violation of division (A), (B), or (C) of section 4506.15 or a	6383
violation of section 4511.19 of the Revised Code has been	6384
committed by a person operating a motor vehicle subject to	6385
regulation by the public utilities commission of Ohio under Title	6386
XLIX of the Revised Code, a peace officer with authority to	6387
enforce that provision of law may stop or detain the person whom	6388
the officer has reasonable cause to believe was operating the	6389
motor vehicle in violation of the division or section and, after	6390
investigating the circumstances surrounding the operation of the	6391
vehicle, may arrest and detain the person.	6392

(D) If a sheriff, deputy sheriff, marshal, deputy marshal,	6393
municipal police officer, member of a police force employed by a	6394
metropolitan housing authority under division (D) of section	6395
3735.31 of the Revised Code, member of a police force employed by	6396
a regional transit authority under division (Y) of section 306.35	6397
of the Revised Code, special police officer employed by a port	6398
authority under section 4582.04 or 4582.28 of the Revised Code,	6399
township constable, police officer of a township or joint township	6400
police district, state university law enforcement officer	6401
appointed under section 3345.04 of the Revised Code, peace officer	6402
of the department of natural resources, individual designated to	6403
perform law enforcement duties under section 511.232, 1545.13, or	6404
6101.75 of the Revised Code, the house sergeant at arms if the	6405
house sergeant at arms has arrest authority pursuant to division	6406
(E)(1) of section 101.311 of the Revised Code, or an assistant	6407
house sergeant at arms is authorized by division (A) or (B) of	6408
this section to arrest and detain, within the limits of the	6409
political subdivision, metropolitan housing authority housing	6410
project, regional transit authority facilities or those areas of a	6411
municipal corporation that have been agreed to by a regional	6412
transit authority and a municipal corporation located within its	6413
territorial jurisdiction, port authority, college, or university	6414
in which the officer is appointed, employed, or elected or within	6415
the limits of the territorial jurisdiction of the peace officer, a	6416
person until a warrant can be obtained, the peace officer, outside	6417
the limits of that territory, may pursue, arrest, and detain that	6418
person until a warrant can be obtained if all of the following	6419
apply:	6420

(1) The pursuit takes place without unreasonable delay after	6421
the offense is committed;	6422

(2) The pursuit is initiated within the limits of the	6423
political subdivision, metropolitan housing authority housing	6424
project, regional transit authority facilities or those areas of a	6425
municipal corporation that have been agreed to by a regional	6426
transit authority and a municipal corporation located within its	6427
territorial jurisdiction, port authority, college, or university	6428
in which the peace officer is appointed, employed, or elected or	6429
within the limits of the territorial jurisdiction of the peace	6430
officer;	6431

(3) The offense involved is a felony, a misdemeanor of the	6432
first degree or a substantially equivalent municipal ordinance, a	6433
misdemeanor of the second degree or a substantially equivalent	6434
municipal ordinance, or any offense for which points are	6435
chargeable pursuant to division (G) of section 4507.021 of the	6436
Revised Code.	6437

(E) In addition to the authority granted under division (A)	6438
or (B) of this section:	6439

(1) A sheriff or deputy sheriff may arrest and detain, until	6440
a warrant can be obtained, any person found violating section	6441
4503.11, 4503.21, or 4549.01, sections 4549.08 to 4549.12, section	6442
4549.62, or Chapter 4511. or 4513. of the Revised Code on the	6443
portion of any street or highway that is located immediately	6444
adjacent to the boundaries of the county in which the sheriff or	6445
deputy sheriff is elected or appointed.	6446

(2) A member of the police force of a township police	6447
district created under section 505.48 of the Revised Code, a	6448
member of the police force of a joint township police district	6449
created under section 505.481 of the Revised Code, or a township	6450
constable appointed in accordance with section 509.01 of the	6451
Revised Code, who has received a certificate from the Ohio peace	6452
officer training commission under section 109.75 of the Revised	6453
Code, may arrest and detain, until a warrant can be obtained, any	6454
person found violating any section or chapter of the Revised Code	6455
listed in division (E)(1) of this section, other than sections	6456
4513.33 and 4513.34 of the Revised Code, on the portion of any	6457
street or highway that is located immediately adjacent to the	6458
boundaries of the township police district or joint township	6459
police district, in the case of a member of a township police	6460
district or joint township police district police force, or the	6461
unincorporated territory of the township, in the case of a	6462
township constable. However, if the population of the township	6463
that created the township police district served by the member's	6464
police force, or the townships that created the joint township	6465
police district served by the member's police force, or the	6466
township that is served by the township constable, is sixty	6467
thousand or less, the member of the township police district or	6468
joint police district police force or the township constable may	6469
not make an arrest under division (E)(2) of this section on a	6470
state highway that is included as part of the interstate system.	6471

(3) A police officer or village marshal appointed, elected,	6472
or employed by a municipal corporation may arrest and detain,	6473
until a warrant can be obtained, any person found violating any	6474
section or chapter of the Revised Code listed in division (E)(1)	6475
of this section on the portion of any street or highway that is	6476
located immediately adjacent to the boundaries of the municipal	6477
corporation in which the police officer or village marshal is	6478
appointed, elected, or employed.	6479

(4) A peace officer of the department of natural resources	6480
or an individual designated to perform law enforcement duties	6481
under section 511.232, 1545.13, or 6101.75 of the Revised Code may	6482
arrest and detain, until a warrant can be obtained, any person	6483
found violating any section or chapter of the Revised Code listed	6484
in division (E)(1) of this section, other than sections 4513.33	6485
and 4513.34 of the Revised Code, on the portion of any street or	6486
highway that is located immediately adjacent to the boundaries of	6487
the lands and waters that constitute the territorial jurisdiction	6488
of the peace officer.	6489

(F)(1) A department of mental health special police officer	6490
or a department of mental retardation and developmental	6491
disabilities special police officer may arrest without a warrant	6492
and detain until a warrant can be obtained any person found	6493
committing on the premises of any institution under the	6494
jurisdiction of the particular department a misdemeanor under a	6495
law of the state.	6496

A department of mental health special police officer or a	6497
department of mental retardation and developmental disabilities	6498
special police officer may arrest without a warrant and detain	6499
until a warrant can be obtained any person who has been	6500
hospitalized, institutionalized, or confined in an institution	6501
under the jurisdiction of the particular department pursuant to or	6502
under authority of section 2945.37, 2945.371, 2945.38, 2945.39,	6503
2945.40, 2945.401, or 2945.402 of the Revised Code and who is	6504
found committing on the premises of any institution under the	6505
jurisdiction of the particular department a violation of section	6506
2921.34 of the Revised Code that involves an escape from the	6507
premises of the institution.	6508

(2)(a) If a department of mental health special police	6509
officer or a department of mental retardation and developmental	6510
disabilities special police officer finds any person who has been	6511
hospitalized, institutionalized, or confined in an institution	6512
under the jurisdiction of the particular department pursuant to or	6513
under authority of section 2945.37, 2945.371, 2945.38, 2945.39,	6514
2945.40, 2945.401, or 2945.402 of the Revised Code committing a	6515
violation of section 2921.34 of the Revised Code that involves an	6516
escape from the premises of the institution, or if there is	6517
reasonable ground to believe that a violation of section 2921.34	6518
of the Revised Code has been committed that involves an escape	6519
from the premises of an institution under the jurisdiction of the	6520
department of mental health or the department of mental	6521
retardation and developmental disabilities and if a department of	6522
mental health special police officer or a department of mental	6523
retardation and developmental disabilities special police officer	6524
has reasonable cause to believe that a particular person who has	6525
been hospitalized, institutionalized, or confined in the	6526
institution pursuant to or under authority of section 2945.37,	6527
2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or 2945.402 of the	6528
Revised Code is guilty of the violation, the special police	6529
officer, outside of the premises of the institution, may pursue,	6530
arrest, and detain that person for that violation of section	6531
2921.34 of the Revised Code, until a warrant can be obtained, if	6532
both of the following apply:	6533

(i) The pursuit takes place without unreasonable delay after	6534
the offense is committed;	6535

(ii) The pursuit is initiated within the premises of the	6536
institution from which the violation of section 2921.34 of the	6537
Revised Code occurred.	6538

(b) For purposes of division (F)(2)(a) of this section, the	6539
execution of a written statement by the administrator of the	6540
institution in which a person had been hospitalized,	6541
institutionalized, or confined pursuant to or under authority of	6542
section 2945.37, 2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or	6543
2945.402 of the Revised Code alleging that the person has escaped	6544
from the premises of the institution in violation of section	6545
2921.34 of the Revised Code constitutes reasonable ground to	6546
believe that the violation was committed and reasonable cause to	6547
believe that the person alleged in the statement to have committed	6548
the offense is guilty of the violation.	6549

(G) As used in this section:

6550

(1) A "department of mental health special police officer"	6551
means a special police officer of the department of mental health	6552
designated under section 5119.14 of the Revised Code who is	6553
certified by the Ohio peace officer training commission under	6554
section 109.77 of the Revised Code as having successfully	6555
completed an approved peace officer basic training program.	6556

(2) A "department of mental retardation and developmental	6557
disabilities special police officer" means a special police	6558
officer of the department of mental retardation and developmental	6559
disabilities designated under section 5123.13 of the Revised Code	6560
who is certified by the Ohio peace officer training council under	6561
section 109.77 of the Revised Code as having successfully	6562
completed an approved peace officer basic training program.	6563

(3) "Deadly weapon" has the same meaning as in section	6564
2923.11 of the Revised Code.	6565

(4) "Family or household member" has the same meaning as in	6566
section 2919.25 of the Revised Code.	6567

(5) "Street" or "highway" has the same meaning as in section	6568
4511.01 of the Revised Code.	6569

(6) "Interstate system" has the same meaning as in section	6570
5516.01 of the Revised Code.	6571

(7) "Peace officer of the department of natural resources"	6572
means an employee of the department of natural resources who is a	6573
natural resources law enforcement staff officer designated	6574
pursuant to section 1501.013, a forest officer designated pursuant	6575
to section 1503.29, a preserve officer designated pursuant to	6576
section 1517.10, a wildlife officer designated pursuant to section	6577
1531.13, a park officer designated pursuant to section 1541.10, or	6578
a state watercraft officer designated pursuant to section 1547.521	6579
of the Revised Code.	6580

Sec. 2935.031.  Any agency, instrumentality, or political	6581
subdivision of the state that employs a sheriff, deputy sheriff,	6582
constable, marshal, deputy marshal, police officer, member of a	6583
metropolitan housing authority police force, state university law	6584
enforcement officer, or Ohio veterans' home policemanpolice	6585
officer with arrest authority under section 2935.03 of the Revised	6586
Code or that employs other persons with arrest authority under the	6587
Revised Code, shall adopt a policy for the pursuit in a motor	6588
vehicle of any person who violates a law of this state or an	6589
ordinance of a municipal corporation. The chief law enforcement	6590
officer or other chief official of the agency, instrumentality, or	6591
political subdivision shall formally advise each peace officer or	6592
other person with arrest authority it employs of the pursuit	6593
policy adopted by that agency, instrumentality, or political	6594
subdivision pursuant to this section.	6595

Sec. 3318.01.  As used in sections 3318.01 to 3318.20 of the	6596
Revised Code:	6597

(A) "Ohio school facilities commission" means the commission	6598
created pursuant to section 3318.30 of the Revised Code.	6599

(B) "Classroom facilities" means rooms in which pupils	6600
regularly assemble in public school buildings to receive	6601
instruction and education and such facilities and building	6602
improvements for the operation and use of such rooms as may be	6603
needed in order to provide a complete educational program, and may	6604
include space within which a child day-care facility or a	6605
community resource center is housed. "Classroom facilities"	6606
includes any space necessary for the operation of a vocational	6607
education program for secondary students in any school district	6608
that operates such a program.	6609

(C) "Project" means a project to construct or acquire	6610
classroom facilities, or to reconstruct or make additions to	6611
existing classroom facilities, to be used for housing the	6612
applicable school district and its functions.	6613

(D) "School district" means a local, exempted village, or	6614
city school district as such districts are defined in Chapter	6615
3311. of the Revised Code, acting as an agency of state	6616
government, performing essential governmental functions of state	6617
government pursuant to sections 3318.01 and 3318.20 of the Revised	6618
Code.	6619

For purposes of assistance provided under sections 3318.40 to	6620
3318.45 of the Revised Code, the term "school district" as used in	6621
this section and in divisions (A), (C), and (D) of section 3318.03	6622
and in sections 3318.031, 3318.033, 3318.042, 3318.07, 3318.08,	6623
3318.083, 3318.084, 3318.085, 3318.086, 3318.10, 3318.11, 3318.12,	6624
3318.13, 3318.14, 3318.15, 3318.16, 3318.19, and 3318.20 of the	6625
Revised Code means a joint vocational school district established	6626
pursuant to section 3311.18 of the Revised Code.	6627

(E) "School district board" means the board of education of a	6628
school district.	6629

(F) "Net bonded indebtedness" means the difference between	6630
the sum of the par value of all outstanding and unpaid bonds and	6631
notes which a school district board is obligated to pay, any	6632
amounts the school district is obligated to pay under	6633
lease-purchase agreements entered into under section 3313.375 of	6634
the Revised Code, and the par value of bonds authorized by the	6635
electors but not yet issued, the proceeds of which can lawfully be	6636
used for the project, and the amount held in the sinking fund and	6637
other indebtedness retirement funds for their redemption. Notes	6638
issued for school buses in accordance with section 3327.08 of the	6639
Revised Code, notes issued in anticipation of the collection of	6640
current revenues, and bonds issued to pay final judgments shall	6641
not be considered in calculating the net bonded indebtedness.	6642

"Net bonded indebtedness" does not include indebtedness	6643
arising from the acquisition of land to provide a site for	6644
classroom facilities constructed, acquired, or added to pursuant	6645
to sections 3318.01 to 3318.20 of the Revised Code.	6646

(G) "Board of elections" means the board of elections of the	6647
county containing the most populous portion of the school	6648
district.	6649

(H) "County auditor" means the auditor of the county in which	6650
the greatest value of taxable property of such school district is	6651
located.	6652

(I) "Tax duplicates" means the general tax lists and	6653
duplicates prescribed by sections 319.28 and 319.29 of the Revised	6654
Code.	6655

(J) "Required level of indebtedness" means:

6656

(1) In the case of districts in the first percentile, five	6657
per cent of the district's valuation for the year preceding the	6658
year in which the controlling board approved the project under	6659
section 3318.04 of the Revised Code.	6660

(2) In the case of districts ranked in a subsequent	6661
percentile, five per cent of the district's valuation for the year	6662
preceding the year in which the controlling board approved the	6663
project under section 3318.04 of the Revised Code, plus [two	6664
one-hundredths of one per cent multiplied by (the percentile in	6665
which the district ranks for the fiscal year preceding the fiscal	6666
year in which the controlling board approved the district's	6667
project minus one).	6668

(K) "Required percentage of the basic project costs" means	6669
one per cent of the basic project costs times the percentile in	6670
which the district ranks for the fiscal year preceding the fiscal	6671
year in which the controlling board approved the district's	6672
project.	6673

(L) "Basic project cost" means a cost amount determined in	6674
accordance with rules adopted under section 111.15 of the Revised	6675
Code by the Ohio school facilities commission. The basic project	6676
cost calculation shall take into consideration the square footage	6677
and cost per square foot necessary for the grade levels to be	6678
housed in the classroom facilities, the variation across the state	6679
in construction and related costs, the cost of the installation of	6680
site utilities and site preparation, the cost of demolition of all	6681
or part of any existing classroom facilities that are abandoned	6682
under the project, the cost of insuring the project until it is	6683
completed, any contingency reserve amount prescribed by the	6684
commission under section 3318.086 of the Revised Code, and the	6685
professional planning, administration, and design fees that a	6686
district may have to pay to undertake a classroom facilities	6687
project.	6688

For a joint vocational school district that receives	6689
assistance under sections 3318.40 to 3318.45 of the Revised Code,	6690
the basic project cost calculation for a project under those	6691
sections shall also take into account the types of laboratory	6692
spaces and program square footages needed for the vocational	6693
education programs for high school students offered by the school	6694
district.	6695

"Basic project cost" also includes the value of classroom	6696
facilities authorized in a pre-existing bond issue as described in	6697
section 3318.033 of the Revised Code.	6698

(M) A(1) Except for a joint vocational school district that	6699
receives assistance under sections 3318.40 to 3318.45 of the	6700
Revised Code, a "school district's portion of the basic project	6701
cost" means the amount determined under section 3318.032 of the	6702
Revised Code.	6703

(2) For a joint vocational school district that receives	6704
assistance under sections 3318.40 to 3318.45 of the Revised Code,	6705
a "school district's portion of the basic project cost" means the	6706
amount determined under division (C) of section 3318.42 of the	6707
Revised Code.	6708

(N) "Child day-care facility" means space within a classroom	6709
facility in which the needs of infants, toddlers, preschool	6710
children, and school children are provided for by persons other	6711
than the parent or guardian of such children for any part of the	6712
day, including persons not employed by the school district	6713
operating such classroom facility.	6714

(O) "Community resource center" means space within a	6715
classroom facility in which comprehensive services that support	6716
the needs of families and children are provided by community-based	6717
social service providers.	6718

(P) "Valuation" means the total value of all property in the	6719
district as listed and assessed for taxation on the tax	6720
duplicates.	6721

(Q) "Percentile" means the percentile in which the district	6722
is ranked pursuant to division (D) of section 3318.011 of the	6723
Revised Code.	6724

(R) "Installation of site utilities" means the installation	6725
of a site domestic water system, site fire protection system, site	6726
gas distribution system, site sanitary system, site storm drainage	6727
system, and site telephone and data system.	6728

(S) "Site preparation" means the earthwork necessary for	6729
preparation of the building foundation system, the paved	6730
pedestrian and vehicular circulation system, playgrounds on the	6731
project site, and lawn and planting on the project site.	6732

Sec. 3318.011.  For purposes of providing assistance under	6733
sections 3318.01 to 3318.20 of the Revised Code, the department of	6734
education shall annually do all of the following:	6735

(A) Calculate the adjusted valuation per pupil of each city,	6736
local, and exempted village school district according to the	6737
following formula:	6738

The district's valuation per pupil -

6739

[$30,000 X (1 - the district's income factor)].

6740

For purposes of this calculation:

6741

(1) "Valuation per pupil" for a district means its average	6742
taxable value, divided by its formula ADM reported under section	6743
3317.03 of the Revised Code for the previous fiscal year.	6744

(2) "Average taxable value" means the average of the amounts	6745
certified for a district in the second, third, and fourth	6746
preceding fiscal years under divisions (A)(1) and (2) of section	6747
3317.021 of the Revised Code.	6748

(3) "Income factor" has the same meaning as in section	6749
3317.02 of the Revised Code.	6750

(B) Calculate for each district the three-year average of	6751
the adjusted valuations per pupil calculated for the district for	6752
the current and two preceding fiscal years;	6753

(C) Rank all such districts in order of adjusted valuation	6754
per pupil from the district with the lowest three-year average	6755
adjusted valuation per pupil to the district with the highest	6756
three-year average adjusted valuation per pupil;	6757

(D) Divide such ranking into percentiles with the first	6758
percentile containing the one per cent of school districts having	6759
the lowest three-year average adjusted valuations per pupil and	6760
the one-hundredth percentile containing the one per cent of school	6761
districts having the highest three-year average adjusted	6762
valuations per pupil;	6763

(E) Determine the school districts that have three-year	6764
average adjusted valuations per pupil that are greater than the	6765
median three-year average adjusted valuation per pupil for all	6766
school districts in the state;	6767

(F) CertifyOn or before the first day of September, certify	6768
the information described in divisions (A) to (E) of this section	6769
to the Ohio school facilities commission.	6770

Sec. 3318.03. (A) Before conducting an on-site evaluation of	6771
a school district under section 3318.02 of the Revised Code, at	6772
the request of the district board of education, the Ohio school	6773
facilities commission shall examine any classroom facilities needs	6774
assessment that has been conducted by the district and any master	6775
plan developed for meeting the facility needs of the district.	6776

(B) Upon conducting the on-site evaluation under section	6777
3318.02 of the Revised Code, the Ohio school facilities commission	6778
shall make a determination of all of the following:	6779

(A)(1) The needs of the school district for additional	6780
classroom facilities;	6781

(B)(2) The number of classroom facilities to be included in	6782
a project, including classroom facilities authorized by a bond	6783
issue described in section 3318.033 of the Revised Code, and the	6784
basic project cost of constructing, acquiring, reconstructing, or	6785
making additions to each such facility;	6786

(C)(3) The amount of such cost that the school district can	6787
supply from available funds, by the issuance of bonds previously	6788
authorized by the electors of the school district the proceeds of	6789
which can lawfully be used for the project, including bonds	6790
authorized by the district's electors as described in section	6791
3318.033 of the Revised Code, and by the issuance of bonds under	6792
section 3318.05 of the Revised Code;	6793

(D)(4) The remaining amount of such cost that shall be	6794
supplied by the state;	6795

(E)(5) The amount of the state's portion to be encumbered in	6796
accordance with section 3318.11 of the Revised Code in the current	6797
and subsequent fiscal bienniums from funds appropriated for	6798
purposes of sections 3318.01 to 3318.20 of the Revised Code.	6799

(C) The commission shall make a determination in favor of	6800
constructing, acquiring, reconstructing, or making additions to a	6801
classroom facility only upon evidence that the proposed project	6802
conforms to sound educational practice, that it is in keeping with	6803
the orderly process of school district reorganization and	6804
consolidation, and that the actual or projected enrollment in each	6805
classroom facility proposed to be included in the project is at	6806
least three hundred fifty pupils. Exceptions shall be authorized	6807
only in those districts where topography, sparsity of population,	6808
and other factors make larger schools impracticable.	6809

(D) Sections 125.81 and 153.04 of the Revised Code shall not	6810
apply to classroom facilities constructed under either sections	6811
3318.01 to 3318.20 or sections 3318.40 to 3318.45 of the Revised	6812
Code.	6813

Sec. 3318.031.  The Ohio school facilities commission shall	6814
consider student and staff safety when reviewing design plans for	6815
classroom facility construction projects proposed under this	6816
chapter. After consulting with appropriate education and law	6817
enforcement personnel, the commission may require as a condition	6818
of project approval under either section 3318.03 or division	6819
(B)(1) of section 3318.41 of the Revised Code such changes in the	6820
design plans as the commission believes will advance or improve	6821
student and staff safety in the proposed classroom facility.	6822

To carry out its duties under this section, the commission	6823
shall review and, if necessary, amend any construction and design	6824
standards used in its project approval process, including	6825
standards for location and number of exits and location of	6826
restrooms, with a focus on advancing student and staff safety.	6827

Sec. 3318.032.  (A) The portion of the basic project cost	6828
supplied by the school district shall be the greater of:	6829

(1) The required percentage of the basic project costs,	6830
determined based on the district's percentile ranking at the time	6831
the controlling board approved the project under section 3318.04	6832
of the Revised Code;	6833

(2) An amount necessary to raise the school district's net	6834
bonded indebtedness, as of the date the controlling board approved	6835
the project, to within five thousand dollars of the required level	6836
of indebtedness.	6837

(B) The amount of the district's share determined under this	6838
section shall be calculated only as of the date the controlling	6839
board approved the project, and that amount applies throughout the	6840
one-year period permitted under section 3318.05 of the Revised	6841
Code for the district's electors to approve the propositions	6842
described in that section. If the amount reserved and encumbered	6843
for a project is released because the electors do not approve	6844
those propositions within that year, and the school district later	6845
receives the controlling board's approval for the project, the	6846
district's portion shall be recalculated in accordance with this	6847
section as of the date of the controlling board's subsequent	6848
approval.	6849

(C) Notwithstanding anything to the contrary in division (A)	6850
or (B) of this section, at no time shall a school district's	6851
portion of the basic project cost be greater than ninety-five per	6852
cent of the total basic project cost.	6853

Sec. 3318.033.  If the electors of a school district have	6854
approved the issuance of bonds for the acquisition of classroom	6855
facilities within eighteen months prior to the school district	6856
board's receipt of a notification by the Ohio school facilities	6857
commission that the school district is eligible for state	6858
assistance under either sections 3318.01 to 3318.20 or sections	6859
3318.40 to 3318.45 of the Revised Code, and if the classroom	6860
facilities supported by that bond measure comply with the	6861
commission's design specifications for such a project under	6862
sections 3318.01 to 3318.20 of the Revised Code, the commission	6863
shall include the value of those classroom facilities in the basic	6864
project cost of the school district's project determined under	6865
section 3318.03 or division (A)(1)(a) of section 3318.41 of the	6866
Revised Code and shall deduct the amount of the bonds authorized	6867
in that bond measure from the amount of the school district's	6868
portion of the basic project cost as determined under section	6869
3318.032 or 3318.42 of the Revised Code.	6870

A school district board may combine the credit for previously	6871
issued bonds authorized under this section along with any local	6872
donated contribution, as described under section 3318.084 of the	6873
Revised Code, in meeting the school district's obligation to raise	6874
its portion of the basic project cost of its classroom facilities	6875
project under sections 3318.01 to 3318.20 or sections 3318.40 to	6876
3318.45 of the Revised Code.	6877

Sec. 3318.042. (A) The board of education of any school	6878
district that is receiving assistance under sections 3318.01 to	6879
3318.20 of the Revised Code after May 20, 1997, or under sections	6880
3318.40 to 3318.45 of the Revised Code, and whose project is still	6881
under construction, may request that the Ohio school facilities	6882
commission examine whether the circumstances prescribed in either	6883
division (B)(1) or (2) of this section exist in the school	6884
district. If the commission so finds, the commission shall review	6885
the school district's original assessment and approved project	6886
under sections 3318.01 to 3318.20 of the Revised Code, and	6887
consider providing additional assistance to the school district to	6888
correct the prescribed conditions found to exist in the district.	6889
Additional assistance under this section shall be limited to	6890
additions to one or more buildings, remodeling of one or more	6891
buildings, or changes to the infrastructure of one or more	6892
buildings.	6893

(B) Consideration of additional assistance to a school	6894
district under this section is warranted in either of the	6895
following circumstances:	6896

(1) Additional work is needed to correct an oversight or	6897
deficiency not identified or included in the district's initial	6898
assessment.	6899

(2) Other conditions exist that, in the opinion of the	6900
comissioncommission, warrant additions or remodeling of the	6901
project facilities or changes to infrastructure associated with	6902
the district's project that were not identified in the initial	6903
assessment and plan.	6904

(C) If the commission decides in favor of providing	6905
additional assistance to any school district under this section,	6906
the school district shall be responsible for paying for its	6907
portion of the cost of the additions, remodeling, or infrastucture	6908
infrastructure changes pursuant to section 3318.083 of the Revised	6909
Code. If, after making a financial evaluation of the school	6910
district, the commission determines that the school district is	6911
unable without undue hardship, according to the guidelines adopted	6912
by the commission, to fund the school district portion of the	6913
increase, then the state and the school district shall enter into	6914
an agreement whereby the state shall pay the portion of the cost	6915
increase attributable to the school district which is determined	6916
to be in excess of any local resources available to the district	6917
and the district shall thereafter reimburse the state. The	6918
commission shall establish the district's schedule for reimbursing	6919
the state, which shall not extend beyond five years. Debt	6920
incurred under this section shall not be included in the	6921
calculation of the net indebtedness of the school district under	6922
section 133.06 of the Revised Code.	6923

Sec. 3318.08. IfExcept in the case of a joint vocational	6924
school district that receives assistance under sections 3318.40 to	6925
3318.45 of the Revised Code, if the requisite favorable vote on	6926
the election is obtained, or if the school district board has	6927
resolved to apply the proceeds of a property tax levy or the	6928
proceeds of an income tax, or a combination of proceeds from such	6929
taxes, as authorized in section 3318.052 of the Revised Code, the	6930
Ohio school facilities commission, upon certification to it of	6931
either the results of the election or the resolution under section	6932
3318.052 of the Revised Code, shall enter into a written agreement	6933
with the school district board for the construction and sale of	6934
the project, which. In the case of a joint vocational school	6935
district that receives assistance under sections 3318.40 to	6936
3318.45 of the Revised Code, if the school district board of	6937
education and the school district electors have satisfied the	6938
conditions prescribed in division (D)(1) of section 3318.41 of the	6939
Revised Code, the commission shall enter into an agreement with	6940
the school district board for the construction and sale of the	6941
project. In either case, the agreement shall include, but need not	6942
be limited to, the following provisions:	6943

(A) The sale and issuance of bonds or notes in anticipation	6944
thereof, as soon as practicable after the execution of the	6945
agreement, in an amount equal to the school district's portion of	6946
the basic project cost, including any bonds previously authorized	6947
by the district's electors as described in section 3318.033 of the	6948
Revised Code and any securities authorized under division (J) of	6949
section 133.06 of the Revised Code and dedicated by the school	6950
district board to payment of the district's portion of the basic	6951
project cost of the project; provided, that if at that time the	6952
county treasurer of each county in which the school district is	6953
located has not commenced the collection of taxes on the general	6954
duplicate of real and public utility property for the year in	6955
which the controlling board approved the project, the school	6956
district board shall authorize the issuance of a first installment	6957
of bond anticipation notes in an amount specified by the	6958
agreement, which amount shall not exceed an amount necessary to	6959
raise the net bonded indebtedness of the school district as of the	6960
date of the controlling board's approval to within five thousand	6961
dollars of the required level of indebtedness for the preceding	6962
year. In the event that a first installment of bond anticipation	6963
notes is issued, the school district board shall, as soon as	6964
practicable after the county treasurer of each county in which the	6965
school district is located has commenced the collection of taxes	6966
on the general duplicate of real and public utility property for	6967
the year in which the controlling board approved the project,	6968
authorize the issuance of a second and final installment of bond	6969
anticipation notes or a first and final issue of bonds.	6970

The combined value of the first and second installment of	6971
bond anticipation notes or the value of the first and final issue	6972
of bonds shall be equal to the school district's portion of the	6973
basic project cost. The proceeds of any such bonds shall be used	6974
first to retire any bond anticipation notes. Otherwise, the	6975
proceeds of such bonds and of any bond anticipation notes, except	6976
the premium and accrued interest thereon, shall be deposited in	6977
the school district's project construction fund. In determining	6978
the amount of net bonded indebtedness for the purpose of fixing	6979
the amount of an issue of either bonds or bond anticipation notes,	6980
gross indebtedness shall be reduced by moneys in the bond	6981
retirement fund only to the extent of the moneys therein on the	6982
first day of the year preceding the year in which the controlling	6983
board approved the project. Should there be a decrease in the tax	6984
valuation of the school district so that the amount of	6985
indebtedness that can be incurred on the tax duplicates for the	6986
year in which the controlling board approved the project is less	6987
than the amount of the first installment of bond anticipation	6988
notes, there shall be paid from the school district's project	6989
construction fund to the school district's bond retirement fund to	6990
be applied against such notes an amount sufficient to cause the	6991
net bonded indebtedness of the school district, as of the first	6992
day of the year following the year in which the controlling board	6993
approved the project, to be within five thousand dollars of the	6994
required level of indebtedness for the year in which the	6995
controlling board approved the project. The maximum amount of	6996
indebtedness to be incurred by any school district board as its	6997
share of the cost of the project is either an amount that will	6998
cause its net bonded indebtedness, as of the first day of the year	6999
following the year in which the controlling board approved the	7000
project, to be within five thousand dollars of the required level	7001
of indebtedness, or an amount equal to the required percentage of	7002
the basic project costs, whichever is greater. All bonds and bond	7003
anticipation notes shall be issued in accordance with Chapter 133.	7004
of the Revised Code, and notes may be renewed as provided in	7005
section 133.22 of the Revised Code.	7006

(B) The transfer of such funds of the school district board	7007
available for the project, together with the proceeds of the sale	7008
of the bonds or notes, except premium, accrued interest, and	7009
interest included in the amount of the issue, to the school	7010
district's project construction fund;	7011

(C) For all school districts except joint vocational school	7012
districts that receive assistance under sections 3318.40 to	7013
3318.45 of the Revised Code, the following provisions as	7014
applicable:	7015

(1) If section 3318.052 of the Revised Code applies, the	7016
earmarking of the proceeds of a tax levied under section 5705.21	7017
of the Revised Code for general ongoing permanent or under	7018
section 5705.218 of the Revised Code for the purpose of permanent	7019
improvements, or the proceeds of a school district income tax	7020
levied under Chapter 5748. of the Revised Code, or the proceeds	7021
from a combination of those two taxes, in an amount to pay all or	7022
part of the service charges on bonds issued to pay the school	7023
district portion of the project and an amount equivalent to all or	7024
part of the tax required under division (B) of section 3318.05 of	7025
the Revised Code.;	7026

(D)(2) If section 3318.052 of the Revised Code does not	7027
apply, either of the following:	7028

(1)(a) The levy of the tax authorized at the election for	7029
the payment of maintenance costs, as specified in division (B) of	7030
section 3318.05 of the Revised Code;	7031

(2)(b) If the school district electors have approved a	7032
continuing tax of at least two mills for each dollar of valuation	7033
for general ongoing permanent improvements under section 5705.21	7034
of the Revised Code and that tax can be used for maintenance, the	7035
earmarking of an amount of the proceeds from such tax for	7036
maintenance of classroom facilities as specified in division (B)	7037
of section 3318.05 of the Revised Code.	7038

(D) For joint vocational school districts that receive	7039
assistance under sections 3318.40 to 3318.45 of the Revised Code,	7040
provision for deposit of school district moneys dedicated to	7041
maintenance of the classroom facilities acquired under those	7042
sections as prescribed in section 3318.43 of the Revised Code;	7043

(E) Dedication of any local donated contribution as provided	7044
for under section 3318.084 of the Revised Code, including a	7045
schedule for depositing such moneys applied as an offset of the	7046
district's obligation to levy the tax described in division (B) of	7047
section 3318.05 of the Revised Code as required under division	7048
(D)(2) of section 3318.084 of the Revised Code.;	7049

(F) Ownership of or interest in the project during the	7050
period of construction, which shall be divided between the	7051
commission and the school district board in proportion to their	7052
respective contributions to the school district's project	7053
construction fund;	7054

(G) Maintenance of the state's interest in the project until	7055
any obligations issued for the project under section 3318.26 of	7056
the Revised Code are no longer outstanding;	7057

(H) The insurance of the project by the school district from	7058
the time there is an insurable interest therein and so long as the	7059
state retains any ownership or interest in the project pursuant to	7060
division (F) of this section, in such amounts and against such	7061
risks as the commission shall require; provided, that the cost of	7062
any required insurance until the project is completed shall be a	7063
part of the basic project cost;	7064

(I) The certification by the director of budget and	7065
management that funds are available and have been set aside to	7066
meet the state's share of the basic project cost as approved by	7067
the controlling board pursuant to either section 3318.04 or	7068
division (B)(1) of section 3318.41 of the Revised Code;	7069

(J) Authorization of the school district board to advertise	7070
for and receive construction bids for the project, for and on	7071
behalf of the commission, and to award contracts in the name of	7072
the state subject to approval by the commission;	7073

(K) Provisions for the disbursement of moneys from the	7074
school district's project account upon issuance by the commission	7075
or the commission's designated representative of vouchers for work	7076
done to be certified to the commission by the treasurer of the	7077
school district board;	7078

(L) Disposal of any balance left in the school district's	7079
project construction fund upon completion of the project;	7080

(M) Limitations upon use of the project or any part of it so	7081
long as any obligations issued to finance the project under	7082
section 3318.26 of the Revised Code are outstanding;	7083

(N) Provision for vesting the state's interest in the	7084
project to the school district board when the obligations issued	7085
to finance the project under section 3318.26 of the Revised Code	7086
are outstanding;	7087

(O) Provision for deposit of an executed copy of the	7088
agreement in the office of the commission;	7089

(P) Provision for termination of the contract and release of	7090
the funds encumbered at the time of the conditional approval, if	7091
the proceeds of the sale of the bonds of the school district board	7092
are not paid into the school district's project construction fund	7093
and if bids for the construction of the project have not been	7094
taken within such period after the execution of the agreement as	7095
may be fixed by the commission;	7096

(Q) Provision for the school district to maintain the	7097
project in accordance with a plan approved by the commission;	7098

(R)(1) For all school districts except thosea district	7099
undertaking a project under section 3318.38 of the Revised Code or	7100
a joint vocational school district undertaking a project under	7101
sections 3318.40 to 3318.45 of the Revised Code, provision that	7102
all state funds reserved and encumbered to pay the state share of	7103
the cost of the project pursuant to section 3318.03 of the Revised	7104
Code be spent on the construction or acquisition of the project	7105
prior to the expenditure of any funds provided by the school	7106
district to pay for its share of the project cost, unless the	7107
school district certifies to the commission that expenditure by	7108
the school district is necessary to maintain the tax-exempt status	7109
of notes or bonds issued by the school district to pay for its	7110
share of the project cost or to comply with applicable temporary	7111
investment periods or spending exceptions to rebate as provided	7112
for under federal law in regard to those notes or bonds, in which	7113
cases, the school district may commit to spend, or spend, a	7114
portion of the funds it provides;	7115

(2) For a school districtsdistrict undertaking a project	7116
under section 3318.38 of the Revised Code or a joint vocational	7117
school district undertaking a project under sections 3318.40 to	7118
3318.45 of the Revised Code, provision that the state funds	7119
reserved and encumbered and the funds provided by the school	7120
district to pay the basic project cost of any segment of the	7121
project, or of the entire project if it is not divided into	7122
segments, be spent on the construction and acquisition of the	7123
project simultaneously in proportion to the state's and the school	7124
district's respective shares of that basic project cost as	7125
determined under section 3318.032 of the Revised Code or, if the	7126
district is a joint vocational school district, under section	7127
3318.42 of the Revised Code.	7128

(S) A provision stipulating that the commission may prohibit	7129
the district from proceeding with any project if the commission	7130
determines that the site is not suitable for construction	7131
purposes. The commission may perform soil tests in its	7132
determination of whether a site is appropriate for construction	7133
purposes.	7134

(T) A provision stipulating that, unless otherwise	7135
authorized by the commission, any contingency reserve portion of	7136
the construction budget prescribed by the commission shall be used	7137
only to pay costs resulting from unforeseen job conditions, to	7138
comply with rulings regarding building and other codes, to pay	7139
costs related to design clarifications or corrections to contract	7140
documents, and to pay the costs of settlements or judgments	7141
related to the project as provided under section 3318.086 of the	7142
Revised Code.	7143

Sec. 3318.084.  (A) Notwithstanding anything to the contrary	7144
in Chapter 3318. of the Revised Code, a school district board may	7145
apply any local donated contribution toward either or bothany of	7146
the following:	7147

(1) The district's portion of the basic project cost of a	7148
project under either sections 3318.01 to 3318.20 or sections	7149
3318.40 to 3318.45 of the Revised Code to reduce the amount of	7150
bonds the district otherwise must issue in order to receive state	7151
assistance under those sections;	7152

(2) AnIf the school district is not a joint vocational	7153
school district proceeding under sections 3318.40 to 3318.45 of	7154
the Revised Code, an offset of all or part of a district's	7155
obligation to levy the tax described in division (B) of section	7156
3318.05 of the Revised Code, which shall be applied only in the	7157
manner prescribed in division (B) of this section;	7158

(3) If the school district is a joint vocational school	7159
district proceeding under sections 3318.40 to 3318.45 of the	7160
Revised Code, all or part of the amount the school district is	7161
obligated to set aside for maintenance of the classroom facilities	7162
acquired under that project pursuant to section 3318.43 of the	7163
Revised Code.	7164

(B) No school district board shall apply any local donated	7165
contribution under division (A)(2) of this section unless the Ohio	7166
school facilities commission first approves that application.	7167

Upon the request of the school district board to apply local	7168
donated contribution under division (A)(2) of this section, the	7169
commission in consultation with the department of taxation shall	7170
determine the amount of total revenue that likely would be	7171
generated by one-half mill of the tax described in division (B) of	7172
section 3318.05 of the Revised Code over the entire	7173
twenty-three-year period required under that section and shall	7174
deduct from that amount any amount of local donated contribution	7175
that the board has committed to apply under division (A)(2) of	7176
this section. The commission then shall determine in consultation	7177
with the department of taxation the rate of tax over twenty-three	7178
years necessary to generate the amount of a one-half mill tax not	7179
offset by the local donated contribution. Notwithstanding	7180
anything to the contrary in section 3318.06, 3318.061, or 3318.361	7181
of the Revised Code, the rate determined by the commission shall	7182
be the rate for which the district board shall seek elector	7183
approval under those sections to meet its obligation under	7184
division (B) of section 3318.05 of the Revised Code. In the case	7185
of a complete offset of the district's obligation under division	7186
(B) of section 3318.05 of the Revised Code, the district shall not	7187
be required to levy the tax otherwise required under that section.	7188
At the end of the twenty-three-year period of the tax required	7189
under division (B) of section 3318.05 of the Revised Code, whether	7190
or not the tax is actually levied, the commission in consultation	7191
of the department of taxation shall recalculate the amount that	7192
would have been generated by the tax if it had been levied at	7193
one-half mill. If the total amount actually generated over that	7194
period from both the tax that was actually levied and any local	7195
donated contribution applied under division (A)(2) of this section	7196
is less than the amount that would have been raised by a one-half	7197
mill tax, the district shall pay any difference. If the total	7198
amount actually raised in such manner is greater than the amount	7199
that would have been raised by a one-half mill tax the difference	7200
shall be zero and no payments shall be made by either the district	7201
or the commission.	7202

(C) As used in this section, "local donated contribution"	7203
means any of the following:	7204

(1) Any moneys irrevocably donated or granted to a school	7205
district board by a source other than the state which the board	7206
has the authority to apply to the school district's project under	7207
sections 3318.01 to 3318.20 of the Revised Code and which the	7208
board has pledged for that purpose by resolution adopted by a	7209
majority of its members;	7210

(2) Any irrevocable letter of credit issued on behalf of a	7211
school district or any cash a school district has on hand,	7212
including any year-end operating fund balances, that can be spent	7213
for classroom facilities, either of which the school district	7214
board has encumbered for payment of the school district's share of	7215
its project under sections 3318.01 to 3318.20 of the Revised Code	7216
and either of which has been approved by the commission in	7217
consultation with the department of education;	7218

(3) Any moneys spent by a source other than the school	7219
district or the state for construction or renovation of specific	7220
classroom facilities that have been approved by the commission as	7221
part of the basic project cost of the district's project. The	7222
school district, the commission, and the entity providing the	7223
local donated contribution under division (C)(3) of this section	7224
shall enter into an agreement indentifyingidentifying the	7225
classroom facilities to be acquired by the expenditures made by	7226
that entity. The agreement shall include, but not be limited to,	7227
stipulations that require an audit by the commission of such	7228
expenditures made on behalf of the district and that specify the	7229
maximum amount of credit to be allowed for those expenditures.	7230
Upon completion of the construction or renovation, the commission	7231
shall determine the actual amount that the commission will credit,	7232
at the request of the district board, toward the district's	7233
portion of the basic project cost, any project cost overruns, or	7234
the basic project cost of future segments if the project has been	7235
divided into segments under section 3318.38 of the Revised Code.	7236
The actual amount of the credit shall not exceed the lesser of the	7237
amount specified in the agreement or the actual cost of the	7238
construction or renovation.	7239

(D) No state moneys shall be released for a project to which	7240
this section applies until:	7241

(1) Any local donated contribution authorized under division	7242
(A)(1) of this section is first deposited into the school	7243
district's project construction fund.	7244

(2) The school district board and the commission have	7245
included a stipulation in their agreement entered into under	7246
section 3318.08 of the Revised Code under which the board will	7247
deposit into a fund approved by the commission according to a	7248
schedule that does not extend beyond the anticipated completion	7249
date of the project the total amount of any local donated	7250
contribution authorized under division (A)(2) or (3) of this	7251
section and dedicated by the board for that purpose.	7252

However, if any local donated contribution as described in	7253
division (C)(3) of this section has been approved under this	7254
section, the state moneys may be released even if the entity	7255
providing that local donated contribution has not spent the moneys	7256
so dedicated as long as the agreement required under that section	7257
has been executed.	7258

Sec. 3318.086.  The construction budget for any project under	7259
sections 3318.01 to 3318.20 or sections 3318.40 to 3318.45 of the	7260
Revised Code shall contain a contingency reserve in an amount	7261
prescribed by the Ohio school facilities commission, which unless	7262
otherwise authorized by the commission, shall be used only to pay	7263
costs resulting from unforeseen job conditions, to comply with	7264
rulings regarding building and other codes, to pay costs related	7265
to design clarifications or corrections to contract documents, and	7266
to pay the costs of settlements or judgments related to the	7267
project.	7268

Sec. 3318.10.  When such working drawings, specifications,	7269
and estimates of cost have been approved by the school district	7270
board and the Ohio school facilities commission, the treasurer of	7271
the school district board shall advertise for construction bids	7272
in accordance with section 3313.46 of the Revised Code. Such	7273
notices shall state that plans and specifications for the project	7274
are on file in the office of the commission and such other place	7275
as may be designated in such notice, and the time and place when	7276
and where bids therefor will be received.	7277

The form of proposal to be submitted by bidders shall be	7278
supplied by the commission. Bidders may be permitted to bid upon	7279
all the branches of work and materials to be furnished and	7280
supplied, upon any branch thereof, or upon all or any thereof.	7281

When the construction bids for all branches of work and	7282
materials have been tabulated, the commission shall cause to be	7283
prepared a revised estimate of the basic project cost based upon	7284
the lowest responsible bids received. If such revised estimate	7285
exceeds the estimated basic project cost as approved by the	7286
controlling board pursuant to section 3318.04 or division (B)(1)	7287
of section 3318.41 of the Revised Code, no contracts may be	7288
entered into pursuant to this section unless such revised estimate	7289
is approved by the commission and by the controlling board	7290
referred to in section 3318.04 of the Revised Code. When such	7291
revised estimate has been prepared, and after such approvals are	7292
given, if necessary, and if the school district board has caused	7293
to be transferred to the project construction fund the proceeds	7294
from the sale of the first or first and final installment of its	7295
bonds or bond anticipation notes pursuant to the provision of	7296
written agreement required by division (B) of section 3318.08 of	7297
the Revised Code, and when the director of budget and management	7298
has certified that there is a balance in the appropriation, not	7299
otherwise obligated to pay precedent obligations, pursuant to	7300
which the state's share of such revised estimate is required to be	7301
paid, the contract for all branches of work and materials to be	7302
furnished and supplied, or for any branch thereof as determined by	7303
the school district board, shall be awarded by the school district	7304
board to the lowest responsible bidder subject to the approval of	7305
the commission. Such award shall be made within sixty days after	7306
the date on which the bids are opened, and the successful bidder	7307
shall enter into a contract within ten days after the successful	7308
bidder is notified of the award of the contract.	7309

Subject to the approval of the commission, the school	7310
district board may reject all bids and readvertise. Any contract	7311
made under this section shall be made in the name of the state and	7312
executed on its behalf by the president and treasurer of the	7313
school district board.	7314

The provisions of sections 9.312 and 3313.46 of the Revised	7315
Code, which are applicable to construction contracts of boards of	7316
education, shall apply to construction contracts for the project.	7317

The remedies afforded to any subcontractor, materials	7318
supplier, laborer, mechanic, or persons furnishing material or	7319
machinery for the project under sections 1311.26 to 1311.32 of the	7320
Revised Code, shall apply to contracts entered into under this	7321
section and the itemized statement required by section 1311.26 of	7322
the Revised Code shall be filed with the school district board.	7323

Sec. 3318.12. (A) The Ohio school facilities commission shall	7324
cause to be transferred to the school district's project	7325
construction fund the necessary amounts from amounts appropriated	7326
by the general assembly and set aside for such purpose, from time	7327
to time as may be necessary to pay obligations chargeable to such	7328
fund when due. All investment earnings of a school district's	7329
project construction fund shall be credited to the fund.	7330

(B) The treasurer of the school district board shall disburse	7331
funds from the school district's project construction fund,	7332
including investment earnings credited to the fund, only upon the	7333
approval of the commission or the commission's designated	7334
representative. The commission or the commission's designated	7335
representative shall issue vouchers against such fund, in such	7336
amounts, and at such times as required by the contracts for	7337
construction of the project.	7338

(C) After the project has been completed:

7339

(A)(1) Any investment earnings remaining in the project	7340
construction fund that are attributable to the school district's	7341
contribution to the fund shall be transferred to the district's	7342
maintenance fund required by division (B) of section 3318.05 or	7343
section 3318.43 of the Revised Code, and the money shall be used	7344
solely for maintaining the classroom facilities included in the	7345
project.	7346

(B)(2) Any investment earnings remaining in the project	7347
construction fund that are attributable to the state's	7348
contribution to the fund shall be transferred to the commission	7349
for expenditure pursuant to sections 3318.01 to 3318.20 or	7350
sections 3318.40 to 3318.45 of the Revised Code.	7351

(C)(3) Any other surplus remaining in the school district's	7352
project construction fund after the project has been completed	7353
shall be transferred to the commission and the school district	7354
board in proportion to their respective contributions to the fund.	7355
The commission shall use the money transferred to it under this	7356
division for expenditure pursuant to sections 3318.01 to 3318.20	7357
or sections 3318.40 to 3318.45 of the Revised Code.	7358

(D) Pursuant to appropriations of the general assembly, any	7359
moneys transferred to the commission under division (C)(2) or (3)	7360
of this section from a project construction fund for a project	7361
under sections 3318.40 to 3318.45 of the Revised Code may be used	7362
for future expenditures for projects under sections 3318.40 to	7363
3318.45 of the Revised Code, notwithstanding the two per cent	7364
annual limit specified in division (B) of section 3318.40 of the	7365
Revised Code.	7366

Sec. 3318.15.  There is hereby created the public school	7367
building fund within the state treasury consisting of any moneys	7368
transferred or appropriated to the fund by the general assembly	7369
and any grants, gifts, or contributions received by the Ohio	7370
school facilities commission to be used for the purposes of the	7371
fund. All investment earnings of the fund shall be credited to	7372
the fund.	7373

Moneys transferred or appropriated to the fund by the general	7374
assembly and moneys in the fund from grants, gifts, and	7375
contributions shall be used for the purposes of sections 3318.01	7376
to 3318.20Chapter 3318. of the Revised Code. The moneys in the	7377
fund received from payments to the state pursuant to division (C)	7378
of section 3318.08 of the Revised Code shall be held in a separate	7379
account in the fund. Such moneys may be used partially for the	7380
purposes of sections 3318.01 to 3318.20 of the Revised Code and	7381
partially to pay bond service charges as defined in division (C)	7382
of section 3318.21 of the Revised Code on obligationsas	7383
prescribed by the general assembly.	7384

Sec. 3318.19.  A complete detailed report of the expenditure	7385
of funds pursuant to the provisions of sections 3318.01 to 3318.20	7386
and sections 3318.40 to 3318.45 of the Revised Code shall be made	7387
by the Ohio school facilities commission biennially to the general	7388
assembly. The report shall contain a detailed statement of	7389
classroom facilities acquired in whole or in part by the state and	7390
sold to school districts, the moneys received from school	7391
districts for credit against their indebtedness to the state, and	7392
such other information as will advise the general assembly of the	7393
nature and progress of this program.	7394

Sec. 3318.25.  There is hereby created in the state treasury	7395
the school building program assistance fund. The fund shall	7396
consist of the proceeds of obligations issued for the purposes of	7397
such fund pursuant to section 3318.26 of the Revised Code that are	7398
payable from moneys in the lottery profits education fund created	7399
in section 3770.06 of the Revised Code or pursuant to section	7400
151.03 of the Revised Code. All investment earnings of the fund	7401
shall be credited to the fund. Moneys in the fund shall be used	7402
as directed by the Ohio school facilities commission for the cost	7403
to the state of constructing classroom facilities under sections	7404
3318.01 to 3318.20Chapter 3318. of the Revised Code as prescribed	7405
by the general assembly.	7406

Sec. 3318.26.  (A) The provisions of this section apply only	7407
to obligations issued by the issuing authority prior to December	7408
1, 1999.	7409

(B) Subject to the limitations provided in section 3318.29	7410
of the Revised Code, the issuing authority, upon the certification	7411
by the Ohio school facilities commission to the issuing authority	7412
of the amount of moneys or additional moneys needed in the school	7413
building program assistance fund for the purposes of sections	7414
3318.01 to 3318.20 and sections 3318.40 to 3318.45 of the Revised	7415
Code, or needed for capitalized interest, for funding reserves,	7416
and for paying costs and expenses incurred in connection with the	7417
issuance, carrying, securing, paying, redeeming, or retirement of	7418
the obligations or any obligations refunded thereby, including	7419
payment of costs and expenses relating to letters of credit, lines	7420
of credit, insurance, put agreements, standby purchase agreements,	7421
indexing, marketing, remarketing and administrative arrangements,	7422
interest swap or hedging agreements, and any other credit	7423
enhancement, liquidity, remarketing, renewal, or refunding	7424
arrangements, all of which are authorized by this section, shall	7425
issue obligations of the state under this section in the required	7426
amount. The proceeds of such obligations, except for obligations	7427
issued to provide moneys for the school building program	7428
assistance fund shall be deposited by the treasurer of state in	7429
special funds, including reserve funds, as provided in the bond	7430
proceedings. The issuing authority may appoint trustees, paying	7431
agents, and transfer agents and may retain the services of	7432
financial advisors and accounting experts and retain or contract	7433
for the services of marketing, remarketing, indexing, and	7434
administrative agents, other consultants, and independent	7435
contractors, including printing services, as are necessary in the	7436
issuing authority's judgment to carry out this section. The costs	7437
of such services are payable from the school building program	7438
assistance fund or any special fund determined by the issuing	7439
authority.	7440

(C) The holders or owners of such obligations shall have no	7441
right to have moneys raised by taxation obligated or pledged, and	7442
moneys raised by taxation shall not be obligated or pledged, for	7443
the payment of bond service charges. Such holders or owners shall	7444
have no rights to payment of bond service charges from any money	7445
or property received by the commission, treasurer of state, or the	7446
state, or from any other use of the proceeds of the sale of the	7447
obligations, and no such moneys may be used for the payment of	7448
bond service charges, except for accrued interest, capitalized	7449
interest, and reserves funded from proceeds received upon the sale	7450
of the obligations and except as otherwise expressly provided in	7451
the applicable bond proceedings pursuant to written directions by	7452
the treasurer of state. The right of such holders and owners to	7453
payment of bond service charges shall be limited to all or that	7454
portion of the pledged receipts and those special funds pledged	7455
thereto pursuant to the bond proceedings in accordance with this	7456
section, and each such obligation shall bear on its face a	7457
statement to that effect.	7458

(D) Obligations shall be authorized by resolution or order	7459
of the issuing authority and the bond proceedings shall provide	7460
for the purpose thereof and the principal amount or amounts, and	7461
shall provide for or authorize the manner or agency for	7462
determining the principal maturity or maturities, not exceeding	7463
the limits specified in section 3318.29 of the Revised Code, the	7464
interest rate or rates or the maximum interest rate, the date of	7465
the obligations and the dates of payment of interest thereon,	7466
their denomination, and the establishment within or without the	7467
state of a place or places of payment of bond service charges.	7468
Sections 9.98 to 9.983 of the Revised Code are applicable to	7469
obligations issued under this section, subject to any applicable	7470
limitation under section 3318.29 of the Revised Code. The purpose	7471
of such obligations may be stated in the bond proceedings in terms	7472
describing the general purpose or purposes to be served. The bond	7473
proceedings shall also provide, subject to the provisions of any	7474
other applicable bond proceedings, for the pledge of all, or such	7475
part as the issuing authority may determine, of the pledged	7476
receipts and the applicable special fund or funds to the payment	7477
of bond service charges, which pledges may be made either prior or	7478
subordinate to other expenses, claims, or payments, and may be	7479
made to secure the obligations on a parity with obligations	7480
theretofore or thereafter issued, if and to the extent provided in	7481
the bond proceedings. The pledged receipts and special funds so	7482
pledged and thereafter received by the state are immediately	7483
subject to the lien of such pledge without any physical delivery	7484
thereof or further act, and the lien of any such pledges is valid	7485
and binding against all parties having claims of any kind against	7486
the state or any governmental agency of the state, irrespective of	7487
whether such parties have notice thereof, and shall create a	7488
perfected security interest for all purposes of Chapter 1309. of	7489
the Revised Code, without the necessity for separation or delivery	7490
of funds or for the filing or recording of the bond proceedings by	7491
which such pledge is created or any certificate, statement or	7492
other document with respect thereto; and the pledge of such	7493
pledged receipts and special funds is effective and the money	7494
therefrom and thereof may be applied to the purposes for which	7495
pledged without necessity for any act of appropriation, except as	7496
required by section 3770.06 of the Revised Code. Every pledge,	7497
and every covenant and agreement made with respect thereto, made	7498
in the bond proceedings may therein be extended to the benefit of	7499
the owners and holders of obligations authorized by this section,	7500
and to any trustee therefor, for the further security of the	7501
payment of the bond service charges.	7502

(E) The bond proceedings may contain additional provisions	7503
as to:	7504

(1) The redemption of obligations prior to maturity at the	7505
option of the issuing authority at such price or prices and under	7506
such terms and conditions as are provided in the bond proceedings;	7507

(2) Other terms of the obligations;

7508

(3) Limitations on the issuance of additional obligations;

7509

(4) The terms of any trust agreement or indenture securing	7510
the obligations or under which the same may be issued;	7511

(5) The deposit, investment and application of special	7512
funds, and the safeguarding of moneys on hand or on deposit,	7513
without regard to Chapter 131., 133., or 135. of the Revised Code,	7514
but subject to any special provisions of sections 3318.21 to	7515
3318.29 of the Revised Code, with respect to particular funds or	7516
moneys, provided that any bank or trust company that acts as	7517
depository of any moneys in the special funds may furnish such	7518
indemnifying bonds or may pledge such securities as required by	7519
the issuing authority;	7520

(6) Any or every provision of the bond proceedings being	7521
binding upon such officer, board, commission, authority, agency,	7522
department, or other person or body as may from time to time have	7523
the authority under law to take such actions as may be necessary	7524
to perform all or any part of the duty required by such provision;	7525

(7) Any provision that may be made in a trust agreement or	7526
indenture;	7527

(8) The lease or sublease of any interest of the school	7528
district or the state in one or more projects as defined in	7529
division (C) of section 3318.01 of the Revised Code, or in one or	7530
more permanent improvements, to or from the issuing authority, as	7531
provided in one or more lease or sublease agreements between the	7532
school or the state and the issuing authority;	7533

(9) Any other or additional agreements with the holders of	7534
the obligations, or the trustee therefor, relating to the	7535
obligations or the security therefor.	7536

(F) The obligations may have the great seal of the state or	7537
a facsimile thereof affixed thereto or printed thereon. The	7538
obligations and any coupons pertaining to obligations shall be	7539
signed or bear the facsimile signature of the issuing authority.	7540
Any obligations or coupons may be executed by the person who, on	7541
the date of execution, is the proper issuing authority although on	7542
the date of such bonds or coupons such person was not the issuing	7543
authority. In case the issuing authority whose signature or a	7544
facsimile of whose signature appears on any such obligation or	7545
coupon ceases to be the issuing authority before delivery thereof,	7546
such signature or facsimile is nevertheless valid and sufficient	7547
for all purposes as if the issuing authority had remained the	7548
issuing authority until such delivery; and in case the seal to be	7549
affixed to obligations has been changed after a facsimile of the	7550
seal has been imprinted on such obligations, such facsimile seal	7551
shall continue to be sufficient as to such obligations and	7552
obligations issued in substitution or exchange therefor.	7553

(G) All obligations are negotiable instruments and	7554
securities under Chapter 1308. of the Revised Code, subject to the	7555
provisions of the bond proceedings as to registration. The	7556
obligations may be issued in coupon or in registered form, or	7557
both, as the issuing authority determines. Provision may be made	7558
for the registration of any obligations with coupons attached	7559
thereto as to principal alone or as to both principal and	7560
interest, their exchange for obligations so registered, and for	7561
the conversion or reconversion into obligations with coupons	7562
attached thereto of any obligations registered as to both	7563
principal and interest, and for reasonable charges for such	7564
registration, exchange, conversion, and reconversion.	7565

(H) Obligations may be sold at public sale or at private	7566
sale, as determined in the bond proceedings.	7567

(I) Pending preparation of definitive obligations, the	7568
issuing authority may issue interim receipts or certificates which	7569
shall be exchanged for such definitive obligations.	7570

(J) In the discretion of the issuing authority, obligations	7571
may be secured additionally by a trust agreement or indenture	7572
between the issuing authority and a corporate trustee which may be	7573
any trust company or bank having its principal place of business	7574
within the state. Any such agreement or indenture may contain the	7575
resolution or order authorizing the issuance of the obligations,	7576
any provisions that may be contained in any bond proceedings, and	7577
other provisions that are customary or appropriate in an agreement	7578
or indenture of such type, including, but not limited to:	7579

(1) Maintenance of each pledge, trust agreement, indenture,	7580
or other instrument comprising part of the bond proceedings until	7581
the state has fully paid the bond service charges on the	7582
obligations secured thereby, or provision therefor has been made;	7583

(2) In the event of default in any payments required to be	7584
made by the bond proceedings, or any other agreement of the	7585
issuing authority made as a part of the contract under which the	7586
obligations were issued, enforcement of such payments or agreement	7587
by mandamus, the appointment of a receiver, suit in equity, action	7588
at law, or any combination of the foregoing;	7589

(3) The rights and remedies of the holders of obligations	7590
and of the trustee, and provisions for protecting and enforcing	7591
them, including limitations on rights of individual holders of	7592
obligations;	7593

(4) The replacement of any obligations that become mutilated	7594
or are destroyed, lost, or stolen;	7595

(5) Such other provisions as the trustee and the issuing	7596
authority agree upon, including limitations, conditions, or	7597
qualifications relating to any of the foregoing.	7598

(K) Any holder of obligations or a trustee under the bond	7599
proceedings, except to the extent that the holder's or trustee's	7600
rights are restricted by the bond proceedings, may by any suitable	7601
form of legal proceedings, protect and enforce any rights under	7602
the laws of this state or granted by such bond proceedings. Such	7603
rights include the right to compel the performance of all duties	7604
of the issuing authority, the commission, or the director of	7605
budget and management required by sections 3318.21 to 3318.29 of	7606
the Revised Code or the bond proceedings; to enjoin unlawful	7607
activities; and in the event of default with respect to the	7608
payment of any bond service charges on any obligations or in the	7609
performance of any covenant or agreement on the part of the	7610
issuing authority, the commission, or the director of budget and	7611
management in the bond proceedings, to apply to a court having	7612
jurisdiction of the cause to appoint a receiver to receive and	7613
administer the pledged receipts and special funds, other than	7614
those in the custody of the treasurer of state or the commission,	7615
which are pledged to the payment of the bond service charges on	7616
such obligations or which are the subject of the covenant or	7617
agreement, with full power to pay, and to provide for payment of	7618
bond service charges on, such obligations, and with such powers,	7619
subject to the direction of the court, as are accorded receivers	7620
in general equity cases, excluding any power to pledge additional	7621
revenues or receipts or other income or moneys of the issuing	7622
authority or the state or governmental agencies of the state to	7623
the payment of such principal and interest and excluding the power	7624
to take possession of, mortgage, or cause the sale or otherwise	7625
dispose of any permanent improvement.	7626

Each duty of the issuing authority and the issuing	7627
authority's officers and employees, and of each governmental	7628
agency and its officers, members, or employees, undertaken	7629
pursuant to the bond proceedings or any agreement or loan made	7630
under authority of sections 3318.21 to 3318.29 of the Revised	7631
Code, and in every agreement by or with the issuing authority, is	7632
hereby established as a duty of the issuing authority, and of each	7633
such officer, member, or employee having authority to perform such	7634
duty, specifically enjoined by the law resulting from an office,	7635
trust, or station within the meaning of section 2731.01 of the	7636
Revised Code.	7637

The person who is at the time the issuing authority, or the	7638
issuing authority's officers or employees, are not liable in their	7639
personal capacities on any obligations issued by the issuing	7640
authority or any agreements of or with the issuing authority.	7641

(L) Obligations issued under this section are lawful	7642
investments for banks, societies for savings, savings and loan	7643
associations, deposit guarantee associations, trust companies,	7644
trustees, fiduciaries, insurance companies, including domestic for	7645
life and domestic not for life, trustees or other officers having	7646
charge of sinking and bond retirement or other special funds of	7647
political subdivisions and taxing districts of this state, the	7648
commissioners of the sinking fund of the state, the administrator	7649
of workers' compensation, the state teachers retirement system,	7650
the public employees retirement system, the school employees	7651
retirement system, and the Ohio police and fire pension fund,	7652
notwithstanding any other provisions of the Revised Code or rules	7653
adopted pursuant thereto by any governmental agency of the state	7654
with respect to investments by them, and also are acceptable as	7655
security for the deposit of public moneys.	7656

(M) Unless otherwise provided in any applicable bond	7657
proceedings, moneys to the credit of or in the special funds	7658
established by or pursuant to this section may be invested by or	7659
on behalf of the issuing authority only in notes, bonds, or other	7660
obligations of the United States, or of any agency or	7661
instrumentality of the United States, obligations guaranteed as to	7662
principal and interest by the United States, obligations of this	7663
state or any political subdivision of this state, and certificates	7664
of deposit of any national bank located in this state and any	7665
bank, as defined in section 1101.01 of the Revised Code, subject	7666
to inspection by the superintendent of financial institutions. If	7667
the law or the instrument creating a trust pursuant to division	7668
(J) of this section expressly permits investment in direct	7669
obligations of the United States or an agency of the United	7670
States, unless expressly prohibited by the instrument, such moneys	7671
also may be invested in no front end load money market mutual	7672
funds consisting exclusively of obligations of the United States	7673
or an agency of the United States and in repurchase agreements,	7674
including those issued by the fiduciary itself, secured by	7675
obligations of the United States or an agency of the United	7676
States; and in collective investment funds established in	7677
accordance with section 1111.14 of the Revised Code and consisting	7678
exclusively of any such securities, notwithstanding division	7679
(B)(1)(c) of that section. The income from such investments shall	7680
be credited to such funds as the issuing authority determines, and	7681
such investments may be sold at such times as the issuing	7682
authority determines or authorizes.	7683

(N) Provision may be made in the applicable bond proceedings	7684
for the establishment of separate accounts in the bond service	7685
fund and for the application of such accounts only to the	7686
specified bond service charges on obligations pertinent to such	7687
accounts and bond service fund and for other accounts therein	7688
within the general purposes of such fund. Unless otherwise	7689
provided in any applicable bond proceedings, moneys to the credit	7690
of or in the several special funds established pursuant to this	7691
section shall be disbursed on the order of the treasurer of state,	7692
provided that no such order is required for the payment from the	7693
bond service fund when due of bond service charges on obligations.	7694

(O) The issuing authority may pledge all, or such portion as	7695
the issuing authority determines, of the pledged receipts to the	7696
payment of bond service charges on obligations issued under this	7697
section, and for the establishment and maintenance of any	7698
reserves, as provided in the bond proceedings, and make other	7699
provisions therein with respect to pledged receipts as authorized	7700
by this chapter, which provisions shall be controlling	7701
notwithstanding any other provisions of law pertaining thereto.	7702

(P) The issuing authority may covenant in the bond	7703
proceedings, and any such covenants shall be controlling	7704
notwithstanding any other provision of law, that the state and	7705
applicable officers and governmental agencies of the state,	7706
including the general assembly, so long as any obligations are	7707
outstanding, shall:	7708

(1) Maintain statutory authority for and cause to be	7709
operated the state lottery, including the transfers to and from	7710
the lottery profits education fund created in section 3770.06 of	7711
the Revised Code so that the pledged receipts shall be sufficient	7712
in amount to meet bond service charges, and the establishment and	7713
maintenance of any reserves and other requirements provided for in	7714
the bond proceedings;	7715

(2) Take or permit no action, by statute or otherwise, that	7716
would impair the exclusion from gross income for federal income	7717
tax purposes of the interest on any obligations designated by the	7718
bond proceeding as tax-exempt obligations.	7719

(Q) There is hereby created the school building program bond	7720
service fund, which shall be in the custody of the treasurer of	7721
state but shall be separate and apart from and not a part of the	7722
state treasury. All moneys received by or on account of the	7723
issuing authority or state agencies and required by the applicable	7724
bond proceedings, consistent with this section, to be deposited,	7725
transferred, or credited to the school building program bond	7726
service fund, and all other moneys transferred or allocated to or	7727
received for the purposes of the fund, shall be deposited and	7728
credited to such fund and to any separate accounts therein,	7729
subject to applicable provisions of the bond proceedings, but	7730
without necessity for any act of appropriation, except as required	7731
by section 3770.06 of the Revised Code. During the period	7732
beginning with the date of the first issuance of obligations and	7733
continuing during such time as any such obligations are	7734
outstanding, and so long as moneys in the school building program	7735
bond service fund are insufficient to pay all bond service charges	7736
on such obligations becoming due in each year, a sufficient amount	7737
of the moneys from the lottery profits education fund included in	7738
pledged receipts, subject to appropriation for such purpose as	7739
provided in section 3770.06 of the Revised Code, are committed and	7740
shall be paid to the school building program bond service fund in	7741
each year for the purpose of paying the bond service charges	7742
becoming due in that year. The school building program bond	7743
service fund is a trust fund and is hereby pledged to the payment	7744
of bond service charges solely on obligations issued to provide	7745
moneys for the school building program assistance fund to the	7746
extent provided in the applicable bond proceedings, and payment	7747
thereof from such fund shall be made or provided for by the	7748
treasurer of state in accordance with such bond proceedings	7749
without necessity for any act of appropriation except as required	7750
by section 3770.06 of the Revised Code.	7751

(R) The obligations, the transfer thereof, and the income	7752
therefrom, including any profit made on the sale thereof, at all	7753
times shall be free from taxation within the state.	7754

Sec. 3318.311. Not less than six months after the effective	7755
date of this section, the Ohio school facilities commission shall	7756
present to the speaker of the house of representatives, the	7757
president of the senate, and the governor a proposal for	7758
legislation to provide classroom facilities assistance to joint	7759
vocational school districts.	7760

Not later than six months after the effective date of this	7761
sectionSeptember14, 2000, the Ohio school facilities commission	7762
shall establish design specifications for classroom facilities	7763
that are appropriate for joint vocational education programs. The	7764
specifications shall provide standards for appropriate pupil	7765
instruction space but shall not include standards for any	7766
vocational education furnishings or equipment that is not	7767
comparable to, or the vocational education equivalent of, the	7768
furnishings or equipment for which assistance is available to	7769
other school districts under sections 3318.01 to 3318.20 of the	7770
Revised Code.	7771

Beginning September 1, 2003, from time to time the commission	7772
may amend the specifications as determined necessary by the	7773
commission; however, any project under sections 3318.40 to 3318.45	7774
of the Revised Code approved by the commission prior to the most	7775
recent amendment to the specifications shall not be subject to the	7776
provisions of such amendment.	7777

Sec. 3318.36.  (A)(1) As used in this section:

7778

(1)(a) "Ohio school facilities commission," "classroom	7779
facilities," "school district," "school district board," "net	7780
bonded indebtedness," "required percentage of the basic project	7781
costs," "basic project cost," "valuation," and "percentile" have	7782
the same meanings as in section 3318.01 of the Revised Code.	7783

(2)(b) "Required level of indebtedness" means five per cent	7784
of the school district's valuation for the year preceding the year	7785
in which the commission and school district enter into an	7786
agreement under division (B) of this section, plus [two	7787
one-hundredths of one per cent multiplied by (the percentile in	7788
which the district ranks in the fiscal year the commission and the	7789
school district enter into such agreement minus one)].	7790

(3)(c) "Local resources" means any moneys generated in any	7791
manner permitted for a school district board to raise the school	7792
district portion of a project undertaken with assistance under	7793
sections 3318.01 to 3318.20 of the Revised Code.	7794

(2) For purposes of determining either the required level of	7795
indebtedness, as defined in division (A)(1)(b) of this section, or	7796
the required percentage of the basic project costs, under division	7797
(C)(1) of this section, the percentile ranking of a school	7798
district with which the commission has entered into an agreement	7799
under this section between the first day of July and the	7800
thirty-first day of August in each fiscal year is the percentile	7801
ranking calculated for that district for the immediately preceding	7802
fiscal year, and the percentile ranking of a school district with	7803
which the commission has entered into such agreement between the	7804
first day of September and the thirtieth day of June in each	7805
fiscal year is the percentile ranking calculated for that district	7806
for the current fiscal year.	7807

(B)(1) There is hereby established the school building	7808
assistance expedited local partnership program. Under the	7809
program, the Ohio school facilities commission may enter into an	7810
agreement with the school district board of any school district	7811
under which the school district board may proceed with the new	7812
construction or major repairs of a part of the school district's	7813
classroom facilities needs, as determined under sections 3318.01	7814
to 3318.20 of the Revised Code, through the expenditure of local	7815
resources prior to the school district's eligibility for state	7816
assistance under sections 3318.01 to 3318.20 of the Revised Code	7817
and may apply that expenditure toward meeting the school	7818
district's portion of the basic project cost of the total of the	7819
school district's classroom facilities needs, as determined under	7820
sections 3318.01 to 3318.20 of the Revised Code and as	7821
recalculated under division (E) of this section, that are eligible	7822
for state assistance under sections 3318.01 to 3318.20 of the	7823
Revised Code when the school district becomes eligible for such	7824
state assistance. Any school district that is reasonably expected	7825
to receive assistance under sections 3318.01 to 3318.20 of the	7826
Revised Code within two fiscal years from the date the school	7827
district adopts its resolution under division (B) of this section	7828
shall not be eligible to participate in the program.	7829

(2) To participate in the program, a school district board	7830
shall first adopt a resolution certifying to the commission the	7831
board's intent to participate in the program.	7832

The resolution shall specify the approximate date that the	7833
board intends to seek elector approval of any bond or tax measures	7834
or to apply other local resources to use to pay the cost of	7835
classroom facilities to be constructed under this section. The	7836
resolution may specify the application of local resources or	7837
elector-approved bond or tax measures after the resolution is	7838
adopted by the board, and in such case the board may proceed with	7839
a discrete portion of its project under this section as soon as	7840
the commission and the controlling board have approved the basic	7841
project cost of the district's classroom facilities needs as	7842
specified in division (D) of this section. The board shall submit	7843
its resolution to the commission not later than ten days after the	7844
date the resolution is adopted by the board.	7845

The commission shall not consider any resolution that is	7846
submitted pursuant to division (B)(2) of this section, as amended	7847
by this amendment, sooner than September 14, 2000.	7848

(3) Any project under this section shall comply with section	7849
3318.03 of the Revised Code and with any specifications for plans	7850
and materials for classroom facilities adopted by the commission	7851
under section 3318.04 of the Revised Code.	7852

(4) If a school district that enters into an agreement under	7853
this section has not begun a project applying local resources as	7854
provided for under that agreement at the time the district is	7855
notified by the commission that it is eligible to receive state	7856
assistance under sections 3318.01 to 3318.20 of the Revised Code,	7857
all assessment and agreement documents entered into under this	7858
section are void.	7859

(5) Only construction of or repairs to classroom facilities	7860
that have been approved by the commission and have been therefore	7861
included as part of a district's basic project cost qualify for	7862
application of local resources under this section.	7863

(C) Based on the results of the on-site visits and	7864
assessment conducted under division (B)(2) of this section, the	7865
commission shall determine the basic project cost of the school	7866
district's classroom facilities needs. The commission shall	7867
determine the school district's portion of such basic project	7868
cost, which shall be the greater of:	7869

(1) The required percentage of the basic project costs,	7870
determined based on the school district's percentile ranking in	7871
the fiscal year the commission and the school district enter into	7872
the agreement under division (B) of this section;	7873

(2) An amount necessary to raise the school district's net	7874
bonded indebtedness, as of the fiscal year the commission and the	7875
school district enter into the agreement under division (B) of	7876
this section, to within five thousand dollars of the required	7877
level of indebtedness.	7878

(D)(1) When the commission determines the basic project cost	7879
of the classroom facilities needs of a school district and the	7880
school district's portion of that basic project cost under	7881
division (C) of this section, the project shall be conditionally	7882
approved. Such conditional approval shall be submitted to the	7883
controlling board for approval thereof. The controlling board	7884
shall forthwith approve or reject the commission's determination,	7885
conditional approval, and the amount of the state's portion of the	7886
basic project cost; however, no state funds shall be encumbered	7887
under this section. Upon approval by the controlling board, the	7888
school district board may identify a discrete part of its	7889
classroom facilities needs, which shall include only new	7890
construction of or additions or major repairs to a particular	7891
building, to address with local resources. Upon identifying a	7892
part of the school district's basic project cost to address with	7893
local resources, the school district board may allocate any	7894
available school district moneys to pay the cost of that	7895
identified part, including the proceeds of an issuance of bonds if	7896
approved by the electors of the school district.	7897

All local resources utilized under this division shall first	7898
be deposited in the project construction account required under	7899
section 3318.08 of the Revised Code.	7900

(2) Unless the school district board exercises its option	7901
under division (D)(3) of this section, for a school district to	7902
qualify for participation in the program authorized under this	7903
section, one of the following conditions shall be satisfied:	7904

(a) The electors of the school district by a majority vote	7905
shall approve the levy of taxes outside the ten-mill limitation	7906
for a period of twenty-three years at the rate of not less than	7907
one-half mill for each dollar of valuation to be used to pay the	7908
cost of maintaining the classroom facilities included in the basic	7909
project cost as determined by the commission. The form of the	7910
ballot to be used to submit the question whether to approve the	7911
tax required under this division to the electors of the school	7912
district shall be the form for an additional levy of taxes	7913
prescribed in section 3318.361 of the Revised Code, which may be	7914
combined in a single ballot question with the questions prescribed	7915
under section 5705.218 of the Revised Code.	7916

(b) As authorized under division (C) of section 3318.05 of	7917
the Revised Code, the school district board shall earmark from the	7918
proceeds of a permanent improvement tax levied under section	7919
5705.21 of the Revised Code, an amount equivalent to the	7920
additional tax otherwise required under division (D)(2)(a) of this	7921
section for the maintenance of the classroom facilities included	7922
in the basic project cost as determined by the commission.	7923

(c) The school district board shall apply the proceeds of a	7924
tax to leverage bonds as authorized under section 3318.052 of the	7925
Revised Code or dedicate a local donated contribution in the	7926
manner described in division (B) of section 3318.084 of the	7927
Revised Code in an amount equivalent to the additional tax	7928
otherwise required under division (D)(2)(a) of this section for	7929
the maintenance of the classroom facilities included in the basic	7930
project cost as determined by the commission.	7931

(3) A school district board may opt to delay levying the	7932
additional tax required under division (D)(2)(a) of this section	7933
or earmarking of the proceeds of a permanent improvement tax	7934
alternatively required under division (D)(2)(b) of this section	7935
until such time as the school district becomes eligible for state	7936
assistance under sections 3318.01 to 3318.20 of the Revised Code.	7937
In order to exercise its option under this division, the board	7938
shall certify to the commission a resolution indicating the	7939
board's intent to do so prior to entering into an agreement under	7940
division (B) of this section.	7941

(4) If pursuant to division (D)(3) of this section a	7942
district board opts to delay levying an additional tax until the	7943
district becomes eligible for state assistance, it shall submit	7944
the question of levying that tax to the district electors as	7945
follows:	7946

(a) In accordance with section 3318.06 of the Revised Code	7947
if it will also be necessary pursuant to division (E) of this	7948
section to submit a proposal for approval of a bond issue;	7949

(b) In accordance with section 3318.361 of the Revised Code	7950
if it is not necessary to also submit a proposal for approval of a	7951
bond issue pursuant to division (E) of this section.	7952

(5) No state assistance under sections 3318.01 to 3318.20 of	7953
the Revised Code shall be released until a school district board	7954
that adopts and certifies a resolution under this division either	7955
has levied the additional tax or has earmarked the proceeds of a	7956
tax as specified in division (D) of this section.	7957

Any amount required for maintenance under division (D)(2) of	7958
this section shall be deposited into a separate fund as specified	7959
in division (B) of section 3318.05 of the Revised Code.	7960

(E)(1) If the school district becomes eligible for state	7961
assistance under sections 3318.01 to 3318.20 of the Revised Code	7962
based on its percentile ranking as determined under division (B)	7963
of this section, the commission shall conduct a new assessment of	7964
the school district's classroom facilities needs and shall	7965
recalculate the basic project cost based on this new assessment.	7966
The basic project cost recalculated under this division shall	7967
include the amount of expenditures made by the school district	7968
board under division (D)(1) of this section. The commission shall	7969
then recalculate the school district's portion of the new basic	7970
project cost, which shall be the percentage of the original basic	7971
project cost assigned to the school district as its portion under	7972
division (C) of this section. The commission shall deduct the	7973
expenditure of school district moneys made under division (D)(1)	7974
of this section from the school district's portion of the basic	7975
project cost as recalculated under this division. If the amount	7976
of school district resources applied by the school district board	7977
to the school district's portion of the basic project cost under	7978
this section is less than the total amount of such portion as	7979
recalculated under this division, the school district board by a	7980
majority vote of all of its members shall, if it desires to seek	7981
state assistance under sections 3318.01 to 3318.20 of the Revised	7982
Code, adopt a resolution as specified in section 3318.06 of the	7983
Revised Code to submit to the electors of the school district the	7984
question of approval of a bond issue in order to pay any	7985
additional amount of school district portion required for state	7986
assistance. Any tax levy approved under division (D) of this	7987
section satisfies the requirements to levy the additional tax	7988
under section 3318.06 of the Revised Code.	7989

(2) If the amount of school district resources applied by	7990
the school district board to the school district's portion of the	7991
basic project cost under this section is more than the total	7992
amount of such portion as recalculated under this division, within	7993
one year after the school district's portion is recalculated under	7994
division (E)(1) of this section the commission may grant to the	7995
school district the difference between the two calculated	7996
portions, but at no time shall the commission expend any state	7997
funds on a project in an amount greater than the state's portion	7998
of the basic project cost as recalculated under this division.	7999

Any reimbursement under this division shall be only for local	8000
resources the school district has applied toward construction cost	8001
expenditures for the classroom facilities approved by the	8002
commission, which shall not include any financing costs associated	8003
with that construction.	8004

The school district board shall use any moneys reimbursed to	8005
the district under this division to pay off any debt service the	8006
district owes for classroom facilities constructed under its	8007
project under this section before such moneys are applied to any	8008
other purpose.	8009

Sec. 3318.40. (A)(1) Sections 3318.40 to 3318.45 of the	8010
Revised Code apply only to joint vocational school districts.	8011

(2) As used in sections 3318.40 to 3318.45 of the Revised	8012
Code:	8013

(a) "Ohio school facilities commission," "classroom	8014
facilities," "project," and "basic project cost" have the same	8015
meanings as in section 3318.01 of the Revised Code.	8016

(b) "Acquisition of classroom facilities" means	8017
constructing, reconstructing, repairing, or making additions to	8018
classroom facilities.	8019

(B) There is hereby established the vocational school	8020
facilities assistance program. Under the program, the Ohio school	8021
facilities commission shall provide assistance to joint	8022
vocational school districts for the acquisition of classroom	8023
facilities suitable to the vocational education programs of the	8024
districts in accordance with sections 3318.40 to 3318.45 of the	8025
Revised Code. For purposes of the program, beginning July 1,	8026
2003, the commission annually may set aside up to two per cent of	8027
the aggregate amount appropriated to it for classroom facilities	8028
assistance projects in the education facilities trust fund,	8029
established under section 183.26 of the Revised Code; the public	8030
school building fund, established under section 3318.15 of the	8031
Revised Code; and the school building program assistance fund,	8032
established under section 3318.25 of the Revised Code.	8033

(C) The commission shall not provide assistance for any	8034
distinct part of a project under sections 3318.40 to 3318.45 of	8035
the Revised Code that when completed will be used exclusively for	8036
an adult education program or exclusively for operation of a	8037
driver training school for instruction leading to the issuance of	8038
a commercial driver's license under Chapter 4506. of the Revised	8039
Code, except for life safety items and basic building components	8040
necessary for complete and continuous construction or renovation	8041
of a classroom facility as determined by the commission.	8042

(D) The commission shall not provide assistance under	8043
sections 3318.40 to 3318.45 of the Revised Code to acquire	8044
classroom facilities for vocational educational instruction at a	8045
location under the control of a school district that is a member	8046
of a joint vocational school district. Any assistance to acquire	8047
classroom facilities for vocational educational instruction at	8048
such location shall be provided to the school district that is a	8049
member of the joint vocational school district through other	8050
provisions of this chapter when that member school district is	8051
eligible for assistance under those provisions.	8052

(E) By September 1, 2003, the commission shall assess the	8053
classroom facilities needs of at least five joint vocational	8054
school districts, according to the order of priority prescribed in	8055
division (B) of section 3318.42 of the Revised Code, and based on	8056
the results of those assessments shall determine the extent to	8057
which amendments to the specifications adopted under section	8058
3318.311 of the Revised Code are warranted. The commission,	8059
thereafter, may amend the specifications as provided in that	8060
section.	8061

(F) After the commission has conducted the assessments	8062
prescribed in division (E) of this section, the commission shall	8063
establish, by rule adopted in accordance with section 111.15 of	8064
the Revised Code, guidelines for the commission to use in deciding	8065
whether to waive compliance with the design specifications adopted	8066
under section 3318.311 of the Revised Code when determining the	8067
number of facilities and the basic project cost of projects as	8068
prescribed in division (A)(1)(a) of section 3318.41 of the Revised	8069
Code. The guidelines shall address the following situations:	8070

(1) Under what circumstances, if any, particular classroom	8071
facilities are adequate to meet the needs of the school district	8072
even though the facilities do not comply with the specifications	8073
adopted under section 3318.311 of the Revised Code;	8074

(2) Under what circumstances, if any, particular classroom	8075
facilities will be renovated or repaired rather than replaced by	8076
construction of new facilities.	8077

Sec. 3318.41. (A)(1) The Ohio school facilities commission	8078
annually shall assess the classroom facilities needs of the number	8079
of joint vocational school districts that the commission	8080
reasonably expects to be able to provide assistance to in a fiscal	8081
year, based on the amount set aside for that fiscal year under	8082
division (B) of section 3318.40 of the Revised Code and the order	8083
of priority prescribed in division (B) of section 3318.42 of the	8084
Revised Code, except that in fiscal year 2004 the commission shall	8085
conduct at least the five assessments prescribed in division (E)	8086
of section 3318.40 of the Revised Code.	8087

Upon conducting an assessment of the classroom facilities	8088
needs of a school district, the commission shall make a	8089
determination of all of the following:	8090

(a) The number of classroom facilities to be included in	8091
a project, including classroom facilities authorized by a bond	8092
issue described in section 3318.033 of the Revised Code, and the	8093
basic project cost of acquiring the classroom facilities included	8094
in the project. The number of facilities and basic project cost	8095
shall be determined in accordance with the specifications adopted	8096
under section 3318.311 of the Revised Code except to the extent	8097
that compliance with such specifications is waived by the	8098
commission pursuant to the rule of the commission adopted under	8099
division (F) of section 3318.40 of the Revised Code.	8100

(b) The school district's portion of the basic project cost	8101
as determined under division (C) of section 3318.42 of the Revised	8102
Code;	8103

(c) The remaining portion of the basic project cost that	8104
shall be supplied by the state;	8105

(d) The amount of the state's portion of the basic project	8106
cost to be encumbered in accordance with section 3318.11 of the	8107
Revised Code in the current and subsequent fiscal bienniums from	8108
funds set aside under division (B) of section 3318.40 of the	8109
Revised Code.	8110

(2) Divisions (A), (C), and (D) of section 3318.03 of the	8111
Revised Code apply to any project under sections 3318.40 to	8112
3318.45 of the Revised Code.	8113

(B)(1) If the commission makes a determination under	8114
division (A) of this section in favor of the acquisition of	8115
classroom facilities for a project under sections 3318.40 to	8116
3318.45 of the Revised Code, such project shall be conditionally	8117
approved. Such conditional approval shall be submitted to the	8118
controlling board for approval. The controlling board shall	8119
immediately approve or reject the commission's determination,	8120
conditional approval, the amount of the state's portion of the	8121
basic project cost, and the amount of the state's portion of the	8122
basic project cost to be encumbered in the current fiscal	8123
biennium. In the event of approval by the controlling board, the	8124
commission shall certify the conditional approval to the joint	8125
vocational school district board of education and shall encumber	8126
the approved funds for the current fiscal year.	8127

(2) No school district that receives assistance under	8128
sections 3318.40 to 3318.45 of the Revised Code shall have another	8129
such project conditionally approved until the expiration of twenty	8130
years after the school district's prior project was conditionally	8131
approved, unless the school district board demonstrates to the	8132
satisfaction of the commission that the school district has	8133
experienced since conditional approval of its prior project an	8134
exceptional increase in enrollment or program requirements	8135
significantly above the school district's design capacity under	8136
that prior project as determined by rule of the commission. Any	8137
rule adopted by the commission to implement this division shall be	8138
tailored to address the classroom facilities needs of joint	8139
vocational school districts.	8140

(C) In addition to generating the amount of the school	8141
district's portion of the basic project cost as determined under	8142
division (C) of section 3318.42 of the Revised Code, in order for	8143
a school district to receive assistance under sections 3318.40 to	8144
3318.45 of the Revised Code, the school district board shall set	8145
aside school district moneys for the maintenance of the classroom	8146
facilities included in the school district's project in the amount	8147
and manner prescribed in section 3318.43 of the Revised Code.	8148

(D)(1) The conditional approval for a project certified	8149
under division (B)(1) of this section shall lapse and the amount	8150
reserved and encumbered for such project shall be released unless	8151
both of the following conditions are satisfied:	8152

(a) Within one hundred twenty days following the date of	8153
certification of the conditional approval to the joint vocational	8154
school district board, the school district board accepts the	8155
conditional approval and certifies to the commission the school	8156
district board's plan to generate the school district's portion of	8157
the basic project cost, as determined under division (C) of	8158
section 3318.42 of the Revised Code, and to set aside moneys for	8159
maintenance of the classroom facilities acquired under the	8160
project, as prescribed in section 3318.43 of the Revised Code.	8161

(b) Within one year following the date of certification of	8162
the conditional approval to the school district board, the	8163
electors of the school district vote favorably on any ballot	8164
measures proposed by the school district board to generate the	8165
school district's portion of the basic project cost.	8166

(2) If the school district board or electors fail to	8167
satisfy the conditions prescribed in division (D)(1) of this	8168
section and the amount reserved and encumbered for the school	8169
district's project is released, the school district shall be given	8170
first priority over other joint vocational school districts for	8171
project funding under sections 3318.40 to 3318.45 of the Revised	8172
Code as such funds become available.	8173

(E) If the conditions prescribed in division (D)(1) of this	8174
section are satisfied, the commission and the school district	8175
board shall enter into an agreement as prescribed in section	8176
3318.08 of the Revised Code and shall proceed with the development	8177
of plans, cost estimates, designs, drawings, and specifications as	8178
prescribed in section 3318.091 of the Revised Code.	8179

(F) Costs in excess of those approved by the commission	8180
under section 3318.091 of the Revised Code shall be payable only	8181
as provided in sections 3318.042 and 3318.083 of the Revised Code.	8182

(G) Advertisement for bids and the award of contracts for	8183
construction of any project under sections 3318.40 to 3318.45 of	8184
the Revised Code shall be conducted in accordance with section	8185
3318.10 of the Revised Code.	8186

(H) The state funds reserved and encumbered and the funds	8187
provided by the school district to pay the basic project cost of a	8188
project under sections 3318.40 to 3318.45 of the Revised Code	8189
shall be spent simultaneously in proportion to the state's and the	8190
school district's respective portions of that basic project cost.	8191

(I) Sections 3318.13, 3318.14, and 3318.16 of the Revised	8192
Code apply to projects under sections 3318.40 to 3318.45 of the	8193
Revised Code.	8194

Sec. 3318.42. (A) Not later than the sixty-first day after	8195
the effective date of this section, and subsequently not later	8196
than the sixty-first day after the first day of each ensuing	8197
fiscal year, the department of education shall do all of the	8198
following:	8199

(1) Calculate the valuation per pupil of each joint	8200
vocational school district according to the following formula:	8201

The school district's average taxable value divided by the

8202

school district's formula ADM reported under section

8203

3317.03 of the Revised Code for the previous fiscal year.

8204

For purposes of this calculation:

8205

(a) "Average taxable value" means the average of the	8206
amounts certified for a school district in the second, third, and	8207
fourth preceding tax years under divisions (A)(1) and (2) of	8208
section 3317.021 of the Revised Code.	8209

(b) "Formula ADM" has the same meaning as defined in	8210
section 3317.02 of the Revised Code.	8211

(2) Calculate for each school district the three-year	8212
average of the valuations per pupil calculated for the school	8213
district for the current and two preceding fiscal years;	8214

(3) Rank all joint vocational school districts in order	8215
from the school district with the lowest three-year average	8216
valuation per pupil to the school district with the highest	8217
three-year average valuation per pupil;	8218

(4) Divide the ranking under division (A)(3) of this	8219
section into percentiles with the first percentile containing the	8220
one per cent of school districts having the lowest three-year	8221
average valuations per pupil and the one-hundredth percentile	8222
containing the one per cent of school districts having the highest	8223
three-year average valuations per pupil;	8224

(5) Certify the information described in divisions (A)(1)	8225
to (4) of this section to the Ohio school facilities commission.	8226

(B) The commission annually shall select school districts	8227
for assistance under sections 3318.40 to 3318.45 of the Revised	8228
Code in the order of the school districts' three-year average	8229
valuations per pupil such that the school district with the lowest	8230
three-year average valuation per pupil shall be given the highest	8231
priority for assistance.	8232

(C) Each joint vocational school district's portion of	8233
the basic project cost of the school district's project under	8234
sections 3318.40 to 3318.45 of the Revised Code shall be one per	8235
cent times the percentile in which the district ranks, except that	8236
no school district's portion shall be less than twenty-five per	8237
cent or greater than ninety-five per cent of the basic project	8238
cost.	8239

Sec. 3318.43. Each year for twenty-three successive years	8240
after the commencement of a joint vocational school district's	8241
project under sections 3318.40 to 3318.45 of the Revised Code, the	8242
board of education of that school district shall deposit into a	8243
separate maintenance account or into the school district's capital	8244
and maintenance fund established under section 3315.18 of the	8245
Revised Code, school district moneys dedicated to maintenance of	8246
the classroom facilities acquired under sections 3318.40 to	8247
3318.45 of the Revised Code in an amount equal to one and one-half	8248
of one per cent of the current insurance value of the classroom	8249
facilities acquired under the project, which value shall be	8250
subject to the approval of the Ohio school facilities commission.	8251

Sec. 3318.44. (A) A joint vocational school district board	8252
of education may generate the school district's portion of the	8253
basic project cost of its project under sections 3318.40 to	8254
3318.45 of the Revised Code using any combination of the following	8255
means if lawfully employed for the acquisition of classroom	8256
facilities:	8257

(1) The issuance of securities in accordance with Chapter	8258
133. and section 3311.20 of the Revised Code;	8259

(2) Local donated contributions as authorized under section	8260
3318.084 of the Revised Code;	8261

(3) A levy for permanent improvements under section 3311.21	8262
or 5705.21 of the Revised Code;	8263

(4) Bonds issued pursuant to division (B) of this	8264
section.	8265

(B) By resolution adopted by a majority of all its members,	8266
a school district board in order to pay all or part of the school	8267
district's portion of its basic project cost may apply the	8268
proceeds of a tax levied under section 5705.21 of the Revised Code	8269
to general ongoing permanent improvements if the proceeds of that	8270
levy lawfully may be used for general construction, renovation,	8271
repair, or maintenance of classroom facilities to leverage bonds	8272
adequate to pay all or part of the school district portion of the	8273
basic project cost of the school district's project under sections	8274
3318.40 to 3318.45 of the Revised Code or to generate an amount	8275
equivalent to all or part of the amount required under section	8276
3318.43 of the Revised Code to be used for maintenance of	8277
classroom facilities acquired under the project. Bonds issued	8278
under this division shall be Chapter 133. securities, but the	8279
issuance of the bonds shall not be subject to a vote of the	8280
electors of the school district as long as the tax proceeds	8281
earmarked for payment of the service charges on the bonds may	8282
lawfully be used for that purpose.	8283

No state moneys shall be released for a project to which	8284
this division applies until the proceeds of any bonds issued under	8285
this division that are dedicated for payment of the school	8286
district's portion of the basic project cost are first deposited	8287
into the school district's project construction fund.	8288

(C) A school district board of education may adopt a	8289
resolution proposing that any of the following questions be	8290
combined with a question specified in section 3318.45 of the	8291
Revised Code:	8292

(1) A bond issue question under section 133.18 of the	8293
Revised Code;	8294

(2) A tax levy question under section 3311.21 of the	8295
Revised Code;	8296

(3) A tax levy question under section 5705.21 of the	8297
Revised Code.	8298

Any question described in divisions (C)(1) to (3) of this	8299
section that is combined with a question proposed under section	8300
3318.45 of the Revised Code shall be for the purpose of either	8301
paying for any permanent improvement, as defined in section 133.01	8302
of the Revised Code, or generating operating revenue specifically	8303
for the facilities acquired under the school district's project	8304
under Chapter 3318. of the Revised Code or for both to the extent	8305
such purposes are permitted by the sections of law under which	8306
each is proposed.	8307

(D) The board of education of a joint vocational school	8308
district that receives assistance under this section may enter	8309
into an agreement for joint issuance of bonds as provided for in	8310
section 3318.085 of the Revised Code.	8311

Sec. 3318.45. (A) Unless division (B) of section 3318.44 of	8312
the Revised Code applies, if a joint vocational school district	8313
board of education proposes to issue securities to generate all or	8314
part of the school district's portion of the basic project cost of	8315
the school district's project under sections 3318.40 to 3318.45 of	8316
the Revised Code, the school district board shall adopt a	8317
resolution in accordance with Chapter 133. and section 3311.20 of	8318
the Revised Code. Unless the school district board seeks authority	8319
to issue securities in more than one series, the school district	8320
board shall adopt the form of the ballot prescribed in section	8321
133.18 of the Revised Code.	8322

(B) If authority is sought to issue bonds in more than one	8323
series, the form of the ballot shall be:	8324

"Shall bonds be issued by the .......... (here insert name of	8325
joint vocational school district) joint vocational school district	8326
to pay the local share of school construction under the State of	8327
Ohio Joint Vocational School Facilities Assistance Program in the	8328
total principal amount of .......... (total principal amount of	8329
the bond issue), to be issued in ...... (number of series) series,	8330
each series to be repaid annually over not more than ......	8331
(maximum number of years over which the principal of each series	8332
may be paid) years, and an annual levy of property taxes be made	8333
outside the ten-mill limitation to pay the annual debt charges on	8334
the bonds and on any notes issued in anticipation of the bonds, at	8335
a rate estimated by the county auditor to average over the	8336
repayment period of each series as follows: .......... [insert	8337
the following for each series: "the .......... series, in a	8338
principal amount of .......... dollars, requiring ...... mills per	8339
dollar of tax valuation, which amount to ...... (rate expressed in	8340
cents or dollars and cents, such as "36 cents" or "$1.41") for	8341
each one hundred dollars in tax valuation, commencing in	8342
.......... and first payable in .........."]?	8343

8344

8347

(C) If it is necessary for the school district to acquire a	8348
site for the classroom facilities to be acquired pursuant to	8349
sections 3318.40 to 3318.45 of the Revised Code, the district	8350
board may propose either to issue bonds of the board or to levy a	8351
tax to pay for the acquisition of such site and may combine the	8352
question of doing so with the question specified by reference in	8353
division (A) of this section or the question specified in division	8354
(B) of this section. Bonds issued under this division for the	8355
purpose of acquiring a site are a general obligation of the school	8356
district and are Chapter 133. securities.	8357

The form of that portion of the ballot to include the	8358
question of either issuing bonds or levying a tax for site	8359
acquisition purposes shall be one of the following:	8360

(1) "Shall bonds be issued by the ............ (here insert	8361
name of the joint vocational school district) joint vocational	8362
school district to pay costs of acquiring a site for classroom	8363
facilities under the State of Ohio Joint Vocational School	8364
Facilities Assistance Program in the principal amount of	8365
.......... (here insert principal amount of the bond issue), to be	8366
repaid annually over a maximum period of .......... (here insert	8367
maximum number of years over which the principal of the bonds may	8368
be paid) years, and an annual levy of property taxes be made	8369
outside the ten-mill limitation, estimated by the county auditor	8370
to average over the repayment period of the bond issue ..........	8371
(here insert number of mills) mills for each one dollar of tax	8372
valuation, which amount to .......... (here insert rate expressed	8373
in cents or dollars and cents, such as "thirty-six cents" or	8374
"$0.36") for each one hundred dollars of valuation to pay the	8375
annual debt charges on the bonds and to pay debt charges on any	8376
notes issued in anticipation of the bonds?"	8377

(2) "Shall an additional levy of taxes outside the ten-mill	8378
limitation be made for the benefit of the .......... (here insert	8379
name of the joint vocational school district) joint vocational	8380
school district for the purpose of acquiring a site for classroom	8381
facilities in the sum of ......... (here insert annual amount the	8382
levy is to produce) estimated by the county auditor to average	8383
........ (here insert number of mills) mills for each one hundred	8384
dollars of valuation, which amount to ......... (here insert rate	8385
expressed in cents or dollars and cents, such as "thirty-six	8386
cents" or "$0.36") for each one hundred dollars of valuation, for	8387
a period of ......... (here insert number of years the millage is	8388
to be imposed) years?"	8389

Where it is necessary to combine the question of issuing	8390
bonds of the joint vocational school district as described in	8391
division (A) of this section with the question of issuing bonds of	8392
the school district for acquisition of a site, the question	8393
specified in that division to be voted on shall be "For the bond	8394
issues" and "Against the bond issues."	8395

Where it is necessary to combine the question of issuing	8396
bonds of the joint vocational school district as described in	8397
division (A) of this section with the question of levying a tax	8398
for the acquisition of a site, the question specified in that	8399
division to be voted on shall be "For the bond issue and the tax	8400
levy" and "Against the bond issue and the tax levy."	8401

(D) Where the school district board chooses to combine a	8402
question specified in this section with any of the additional	8403
questions described in division (C) of section 3318.44 of the	8404
Revised Code, the question to be voted on shall be "For the bond	8405
issues and the tax levies" and "Against the bond issues and the	8406
tax levies."	8407

(E) If a majority of those voting upon a proposition	8408
prescribed in this section which includes the question of issuing	8409
bonds vote in favor of that issuance and if the agreement	8410
prescribed in section 3318.08 of the Revised Code has been entered	8411
into, the school district board may proceed under Chapter 133. of	8412
the Revised Code with the issuance of bonds or bond anticipation	8413
notes in accordance with the terms of the agreement.	8414

Sec. 3318.46. By rule adopted in accordance with section	8415
111.15 of the Revised Code, the Ohio school facilities commission	8416
shall establish a program whereby the board of education of any	8417
joint vocational school district may enter into an agreement with	8418
the commission under which the board may proceed with the new	8419
construction or major repairs of a part of the school district's	8420
classroom facilities needs, as determined under sections 3318.40	8421
to 3318.45 of the Revised Code, through the expenditure of local	8422
resources prior to the school district's eligibility for state	8423
assistance under sections 3318.40 to 3318.45 of the Revised Code.	8424
The program shall be structured in a manner similar to the program	8425
established under section 3318.36 of the Revised Code. The	8426
program shall be operational on July 1, 2004.	8427

Sec. 3354.16.  (A) When the board of trustees of a community	8428
college district has by resolution determined to let by contract	8429
the work of improvements pursuant to the official plan of such	8430
district, contracts in amounts exceeding a dollar amount set by	8431
the board, which dollar amount shall not exceed fifteenfifty	8432
thousand dollars, shall be advertised after notices calling for	8433
bids have been published once a week for three consecutive weeks,	8434
in at least one newspaper of general circulation within the	8435
community college district wherein the work is to be done.	8436
Subject to section 3354.10 of the Revised Code, the board of	8437
trustees of the district may let such contract to the lowest	8438
responsive and responsible bidder, in accordance with section	8439
9.312 of the Revised Code, who meets the requirements of section	8440
153.54 of the Revised Code. Such contract shall be in writing and	8441
shall be accompanied by or shall refer to plans and specifications	8442
for the work to be done. Such contract shall be approved by the	8443
board of trustees and signed by the president of the board and by	8444
the contractor.	8445

(B) On January 1, 1996, and the first day of January of	8446
every even-numbered year thereafter, the chancellor of the board	8447
of regents shall adjust the fifteenfifty thousand dollar contract	8448
limit set forth in division (A) of this section, as adjusted in	8449
any previous year pursuant to this division. The chancellor shall	8450
adjust the limit according to the average increase or decrease for	8451
each of the two years immediately preceding the adjustment as set	8452
forth in the United States department of commerce, bureau of the	8453
census implicit price deflator for construction, provided that no	8454
increase or decrease for any year shall exceed three per cent of	8455
the contract limit in existence at the time of the adjustment.	8456
Notwithstanding division (A) of this section, the limit adjusted	8457
under this division shall be used thereafter in lieu of the limit	8458
in division (A) of this section.	8459

(C) Before entering into an improvement pursuant to division	8460
(A) of this section, the board of trustees of a community college	8461
district shall require separate and distinct proposals to be made	8462
for furnishing materials or doing work on the improvement, or	8463
both, in the board's discretion, for each separate and distinct	8464
branch or class of work entering into the improvement. The board	8465
of trustees also may require a single, combined proposal for the	8466
entire project for materials or doing work, or both, in the	8467
board's discretion, that includes each separate and distinct	8468
branch or class of work entering into the improvement. The board	8469
of trustees need not solicit separate proposals for a branch or	8470
class of work for an improvement if the estimate cost for that	8471
branch or class of work is less than five thousand dollars.	8472

(D) When more than one branch or class of work is required,	8473
no contract for the entire job, or for a greater portion thereof	8474
than is embraced in one such branch or class of work shall be	8475
awarded, unless the separate bids do not cover all the work and	8476
materials required or the bids for the whole or for two or more	8477
kinds of work or materials are lower than the separate bids in the	8478
aggregate. The board of trustees need not award separate	8479
contracts for a branch or class of work entering into an	8480
improvement if the estimated cost for that branch or class of work	8481
is less than five thousand dollars.	8482

Sec. 3355.12.  (A) When the managing authority of the	8483
university branch district has determined to let by contract the	8484
work of improvements, contracts in amounts exceeding a dollar	8485
amount set by the managing authority, which dollar amount shall	8486
not exceed fifteenfifty thousand dollars, shall be advertised	8487
after notices calling for bids have been published once a week for	8488
three consecutive weeks, in at least one newspaper of general	8489
circulation within the university branch district wherein the work	8490
is to be done. Such managing authority may let such contract to	8491
the lowest responsive and responsible bidder, in accordance with	8492
section 9.312 of the Revised Code, who meets the requirements of	8493
section 153.54 of the Revised Code. Such contract shall be in	8494
writing and shall be accompanied by or shall refer to plans and	8495
specifications for the work to be done. Such contract shall be	8496
approved by the managing authority of the university branch	8497
district and signed by the chairmanchairperson or vice-chairman	8498
vice-chairperson of the managing authority and by the contractor.	8499

(B) On January 1, 1996, and the first day of January of	8500
every even-numbered year thereafter, the chancellor of the board	8501
of regents shall adjust the fifteenfifty thousand dollar contract	8502
limit set forth in division (A) of this section, as adjusted in	8503
any previous year pursuant to this division. The chancellor shall	8504
adjust the limit according to the average increase or decrease for	8505
each of the two years immediately preceding the adjustment as set	8506
forth in the United States department of commerce, bureau of the	8507
census implicit price deflator for construction, provided that no	8508
increase or decrease for any year shall exceed three per cent of	8509
the contract limit in existence at the time of the adjustment.	8510
Notwithstanding division (A) of this section, the limit adjusted	8511
under this division shall be used thereafter in lieu of the limit	8512
in division (A) of this section.	8513

(C) Before entering into an improvement pursuant to division	8514
(A) of this section, the managing authority of the university	8515
branch district shall require separate and distinct proposals to	8516
be made for furnishing materials or doing work on the improvement,	8517
or both, in the board's discretion, for each separate and distinct	8518
branch or class of work entering into the improvement. The	8519
managing authority also may require a single, combined proposal	8520
for the entire project for materials or doing work, or both, in	8521
the board's discretion, that includes each separate and distinct	8522
branch or class of work entering into the improvement. The	8523
managing authority need not solicit separate proposals for a	8524
branch or class of work for an improvement if the estimate cost	8525
for that branch or class of work is less than five thousand	8526
dollars.	8527

(D) When more than one branch or class of work is required,	8528
no contract for the entire job, or for a greater portion thereof	8529
than is embraced in one such branch or class of work shall be	8530
awarded, unless the separate bids do not cover all the work and	8531
materials required or the bids for the whole or for two or more	8532
kinds of work or materials are lower than the separate bids in the	8533
aggregate. The managing authority need not award separate	8534
contracts for a branch or class of work entering into an	8535
improvement if the estimated cost for that branch or class of work	8536
is less than five thousand dollars.	8537

Sec. 3357.16.  (A) When the board of trustees of a technical	8538
college district has by resolution determined to let by contract	8539
the work of improvements pursuant to the official plan of such	8540
district, contracts in amounts exceeding a dollar amount set by	8541
the board, which dollar amount shall not exceed fifteenfifty	8542
thousand dollars, shall be advertised after notice calling for	8543
bids has been published once a week for three consecutive weeks,	8544
in at least one newspaper of general circulation within the	8545
technical college district where the work is to be done. The	8546
board of trustees of the technical college district may let such	8547
contract to the lowest responsive and responsible bidder, in	8548
accordance with section 9.312 of the Revised Code, who meets the	8549
requirements of section 153.54 of the Revised Code. Such contract	8550
shall be in writing and shall be accompanied by or shall refer to	8551
plans and specifications for the work to be done. Such contract	8552
shall be approved by the board of trustees and signed by the	8553
president of the board and by the contractor.	8554

(B) On January 1, 1996, and the first day of January of	8555
every even-numbered year thereafter, the chancellor of the board	8556
of regents shall adjust the fifteenfifty thousand dollar contract	8557
limit set forth in division (A) of this section, as adjusted in	8558
any previous year pursuant to this division. The chancellor shall	8559
adjust the limit according to the average increase or decrease for	8560
each of the two years immediately preceding the adjustment as set	8561
forth in the United States department of commerce, bureau of the	8562
census implicit price deflator for construction, provided that no	8563
increase or decrease for any year shall exceed three per cent of	8564
the contract limit in existence at the time of the adjustment.	8565
Notwithstanding division (A) of this section, the limit adjusted	8566
under this division shall be used thereafter in lieu of the limit	8567
in division (A) of this section.	8568

(C) Before entering into an improvement pursuant to division	8569
(A) of this section, the board of trustees of a technical college	8570
district shall require separate and distinct proposals to be made	8571
for furnishing materials or doing work on the improvement, or	8572
both, in the board's discretion, for each separate and distinct	8573
branch or class of work entering into the improvement. The board	8574
of trustees also may require a single, combined proposal for the	8575
entire project for materials or doing work, or both, in the	8576
board's discretion, that includes each separate and distinct	8577
branch or class of work entering into the improvement. The board	8578
of trustees need not solicit separate proposals for a branch or	8579
class of work for an improvement if the estimate cost for that	8580
branch or class of work is less than five thousand dollars.	8581

(D) When more than one branch or class of work is required,	8582
no contract for the entire job, or for a greater portion thereof	8583
than is embraced in one such branch or class of work shall be	8584
awarded, unless the separate bids do not cover all the work and	8585
materials required or the bids for the whole or for two or more	8586
kinds of work or materials are lower than the separate bids in the	8587
aggregate. The board of trustees need not award separate	8588
contracts for a branch or class of work entering into an	8589
improvement if the estimated cost for that branch or class of work	8590
is less than five thousand dollars.	8591

Sec. 3383.01.  As used in this chapter:

8592

(A) "Arts" means any of the following:

8593

(1) Visual, musical, dramatic, graphic, design, and other	8594
arts, including, but not limited to, architecture, dance,	8595
literature, motion pictures, music, painting, photography,	8596
sculpture, and theater, and the provision of training or education	8597
in these arts;	8598

(2) The presentation or making available, in museums or	8599
other indoor or outdoor facilities, of principles of science and	8600
their development, use, or application in business, industry, or	8601
commerce or of the history, heritage, development, presentation,	8602
and uses of the arts described in division (A)(1) of this section	8603
and of transportation;	8604

(3) The preservation, presentation, or making available of	8605
features of archaeological, architectural, environmental, or	8606
historical interest or significance in a state historical facility	8607
or a local historical facility.	8608

(B) "Arts organization" means either of the following:

8609

(1) A governmental agency or Ohio nonprofit corporation that	8610
provides programs or activities in areas directly concerned with	8611
the arts;	8612

(2) A regional arts and cultural district as defined in	8613
section 3381.01 of the Revised Code.	8614

(C) "Arts project" means all or any portion of an Ohio arts	8615
facility for which the general assembly has specifically	8616
authorized the spending of money, or made an appropriation,	8617
pursuant to division (D)(3) or (E) of section 3383.07 of the	8618
Revised Code.	8619

(D) "Cooperative contract" means a contract between the Ohio	8620
arts and sports facilities commission and an arts organization	8621
providing the terms and conditions of the cooperative use of an	8622
Ohio arts facility.	8623

(E) "Costs of operation" means amounts required to manage an	8624
Ohio arts facility that are incurred following the completion of	8625
construction of its arts project, provided that both of the	8626
following apply:	8627

(1) Those amounts either:

8628

(a) Have been committed to a fund dedicated to that purpose;

8629

(b) Equal the principal of any endowment fund, the income	8630
from which is dedicated to that purpose.	8631

(2) The commission and the arts organization have executed	8632
an agreement with respect to either of those funds.	8633

(F) "General building services" means general building	8634
services for an Ohio arts facility or an Ohio sports facility,	8635
including, but not limited to, general custodial care, security,	8636
maintenance, repair, painting, decoration, cleaning, utilities,	8637
fire safety, grounds and site maintenance and upkeep, and	8638
plumbing.	8639

(G) "Governmental agency" means a state agency, a	8640
state-supported or state-assisted institution of higher education,	8641
a municipal corporation, county, township, or school district, a	8642
port authority created under Chapter 4582. of the Revised Code,	8643
any other political subdivision or special district in this state	8644
established by or pursuant to law, or any combination of these	8645
entities; except where otherwise indicated, the United States or	8646
any department, division, or agency of the United States, or any	8647
agency, commission, or authority established pursuant to an	8648
interstate compact or agreement.	8649

(H) "Local contributions" means the value of an asset	8650
provided by or on behalf of an arts organization from sources	8651
other than the state, the value and nature of which shall be	8652
approved by the Ohio arts and sports facilities commission, in its	8653
sole discretion. "Local contributions" may include the value of	8654
the site where an arts project is to be constructed. All "local	8655
contributions," except a contribution attributable to such a site,	8656
shall be for the costs of construction of an arts project or the	8657
costs of operation of an arts facility.	8658

(I) "Local historical facility" means a site or facility,	8659
other than a state historical facility, of archaeological,	8660
architectural, environmental, or historical interest or	8661
significance, or a facility, including a storage facility,	8662
appurtenant to the operations of such a site or facility, that is	8663
owned by an arts organization, provided the facility meets the	8664
requirements of division (K)(2)(b) of this section, is managed by	8665
or pursuant to a contract with the Ohio arts and sports facilities	8666
commission, and is used for or in connection with the activities	8667
of the commission, including the presentation or making available	8668
of arts to the public.	8669

(J) "Manage," "operate," or "management" means the provision	8670
of, or the exercise of control over the provision of, activities:	8671

(1) Relating to the arts for an Ohio arts facility,	8672
including as applicable, but not limited to, providing for	8673
displays, exhibitions, specimens, and models; booking of artists,	8674
performances, or presentations; scheduling; and hiring or	8675
contracting for directors, curators, technical and scientific	8676
staff, ushers, stage managers, and others directly related to the	8677
arts activities in the facility; but not including general	8678
building services;	8679

(2) Relating to sports and athletic events for an Ohio	8680
sports facility, including as applicable, but not limited to,	8681
providing for booking of athletes, teams, and events; scheduling;	8682
and hiring or contracting for staff, ushers, managers, and others	8683
directly related to the sports and athletic events in the	8684
facility; but not including general building services.	8685

(K) "Ohio arts facility" means any of the following:

8686

(1) The three theaters located in the state office tower at	8687
77 South High street in Columbus;	8688

(2) Any capital facility in this state to which both of the	8689
following apply:	8690

(a) The construction of an arts project related to the	8691
facility was authorized or funded by the general assembly pursuant	8692
to division (D)(3) of section 3383.07 of the Revised Code and	8693
proceeds of state bonds are used for costs of the arts project.	8694

(b) The facility is managed directly by, or is subject to a	8695
cooperative or management contract with, the Ohio arts and sports	8696
facilities commission, and is used for or in connection with the	8697
activities of the commission, including the presentation or making	8698
available of arts to the public and the provision of training or	8699
education in the arts. A cooperative or management contract shall	8700
be for a term not less than the time remaining to the date of	8701
payment or provision for payment of any state bonds issued to pay	8702
the costs of the arts project, as determined by the director of	8703
budget and management and certified by the director to the Ohio	8704
arts and sports facilities commission and to the Ohio building	8705
authority.	8706

(3) A state historical facility or a local historical	8707
facility.	8708

(L) "State agency" means the state or any of its branches,	8709
officers, boards, commissions, authorities, departments,	8710
divisions, or other units or agencies.	8711

(M) "Construction" includes acquisition, including	8712
acquisition by lease-purchase, demolition, reconstruction,	8713
alteration, renovation, remodeling, enlargement, improvement, site	8714
improvements, and related equipping and furnishing.	8715

(N) "State historical facility" means a site or facility of	8716
archaeological, architectural, environmental, or historical	8717
interest or significance, or a facility, including a storage	8718
facility, appurtenant to the operations of such a site or	8719
facility, that is owned by or is located on real property owned by	8720
the state or by an arts organization, so long as the real property	8721
of the arts organization is contiguous to state-owned real	8722
property that is in the care, custody, and control of an arts	8723
organization, and that is managed directly by or is subject to a	8724
cooperative or management contract with the Ohio arts and sports	8725
facilities commission and is used for or in connection with the	8726
activities of the commission, including the presentation or making	8727
available of arts to the public.	8728

(O) "Ohio sports facility" means all or a portion of a	8729
stadium, arena, or other capital facility in this state, a	8730
primary purpose of which is to provide a site or venue for the	8731
presentation to the public of events of one or more major or minor	8732
league professional athletic or sports teams that are associated	8733
with the state or with a city or region of the state, which	8734
facility is owned by or is located on real property owned by the	8735
state or a governmental agency, and including all parking	8736
facilities, walkways, and other auxiliary facilities, equipment,	8737
furnishings, and real and personal property and interests and	8738
rights therein, that may be appropriate for or used for or in	8739
connection with the facility or its operation, for capital costs	8740
of which state funds are spent pursuant to this chapter. A	8741
facility constructed as an Ohio sports facility may be both an	8742
Ohio arts facility and an Ohio sports facility.	8743

Sec. 3383.02.  (A) There is hereby created the Ohio arts and	8744
sports facilities commission. Notwithstanding any provision to	8745
the contrary contained in Chapter 152. of the Revised Code, the	8746
commission shall engage in and provide for the development,	8747
performance, and presentation or making available of the arts and	8748
professional sports and athletics to the public in this state, and	8749
the provision of training or education in the arts, by the	8750
exercise of its powers under this chapter, including the	8751
provision, operation, management, and cooperative use of Ohio	8752
arts facilities and Ohio sports facilities. The commission is a	8753
body corporate and politic, an agency of state government and an	8754
instrumentality of the state, performing essential governmental	8755
functions of this state. The carrying out of the purposes and the	8756
exercise by the commission of its powers conferred by this chapter	8757
are essential public functions and public purposes of the state	8758
and of state government. The commission may, in its own name, sue	8759
and be sued, enter into contracts, and perform all the powers and	8760
duties given to it by this chapter but; however, it does not have	8761
and shall not exercise the power of eminent domain.	8762

(B) The commission shall consist of ten members, seven of	8763
whom shall be voting members and three of whom shall be nonvoting	8764
members. The seven voting members shall be appointed by the	8765
governor, with the advice and consent of the senate, from	8766
different geographical regions of the state. In addition, one of	8767
the voting members shall represent the state architect. Not more	8768
than four of the members appointed by the governor shall be	8769
affiliated with the same political party. The nonvoting members	8770
shall be the staff director of the Ohio arts council, a member of	8771
the senate appointed by the president of the senate, and a member	8772
of the house of representatives appointed by the speaker of the	8773
house.	8774

(C) Of the five initial appointments made by the governor,	8775
one shall be for a term expiring December 31, 1989, two shall be	8776
for terms expiring December 31, 1990, and two shall be for terms	8777
expiring December 31, 1991. Of the initial appointments of the	8778
sixth and seventh voting members appointed by the governor as a	8779
result of this amendment, one shall be for a term expiring	8780
December 31, 2003, and one shall be for a term expiring December	8781
31, 2004. Thereafter, each such term shall be for three years,	8782
commencing on the first day of January and ending on the	8783
thirty-first day of December. Each appointment by the president	8784
of the senate and by the speaker of the house of representatives	8785
shall be for the balance of the then legislative biennium. Each	8786
member shall hold office from the date of the member's appointment	8787
until the end of the term for which the member was appointed. Any	8788
member appointed to fill a vacancy occurring prior to the	8789
expiration of the term for which the member's predecessor was	8790
appointed shall hold office for the remainder of such term. Any	8791
member shall continue in office subsequent to the expiration date	8792
of the member's term until the member's successor takes office, or	8793
until a period of sixty days has elapsed, whichever occurs first.	8794

(D) Members of the commission shall serve without	8795
compensation.	8796

(E) Organizational meetings of the commission shall be held	8797
at the first meeting of each calendar year. At each	8798
organizational meeting, the commission shall elect from among its	8799
voting members a chairperson, a vice-chairperson, and a	8800
secretary-treasurer, who shall serve until the next annual	8801
meeting. The commission shall adopt rules pursuant to section	8802
111.15 of the Revised Code for the conduct of its internal	8803
business and shall keep a journal of its proceedings.	8804

(F) Four voting members of the commission constitute a	8805
quorum, and the affirmative vote of four members is necessary for	8806
approval of any action taken by the commission. A vacancy in the	8807
membership of the commission does not impair a quorum from	8808
exercising all the rights and performing all the duties of the	8809
commission. Meetings of the commission may be held anywhere in	8810
the state, and shall be held in compliance with section 121.22 of	8811
the Revised Code.	8812

(G) All expenses incurred in carrying out this chapter are	8813
payable solely from money accrued under this chapter or	8814
appropriated for these purposes by the general assembly, and the	8815
commission shall incur no liability or obligation beyond such	8816
money.	8817

(H) The commission shall file an annual report of its	8818
activities and finances with the governor, director of budget and	8819
management, speaker of the house of representatives, president of	8820
the senate, and chairpersons of the house and senate finance	8821
committees.	8822

(I) There is hereby established in the state treasury the	8823
Ohio arts and sports facilities commission administration fund.	8824
All revenues of the commission shall be credited to that fund and	8825
to any accounts created in the fund with the commission's	8826
approval. All expenses of the commission, including reimbursement	8827
of, or payment to, any other fund or any governmental agency for	8828
advances made or services rendered to or on behalf of the	8829
commission, shall be paid from the Ohio arts and sports facilities	8830
commission administration fund as determined by or pursuant to	8831
directions of the commission. All investment earnings of the	8832
administration fund shall be credited to the fund and shall be	8833
allocated among any accounts created in the fund in the manner	8834
determined by the commission.	8835

(J) Title to all real property and lesser interests in real	8836
property acquired by the commission, including leasehold and other	8837
interests, pursuant to this chapter shall be taken in the name of	8838
the state and shall be held for the use and benefit of the	8839
commission. The commission shall not mortgage such real property	8840
and interests in real property. Title to other property and	8841
interests in it acquired by the commission pursuant to this	8842
chapter shall be taken in its name.	8843

Sec. 3383.03.  The Ohio arts and sports facilities commission	8844
shall do the following:	8845

(A) From time to time, determine the need for arts projects,	8846
Ohio arts facilities, and Ohio sports facilities, report to the	8847
governor and the general assembly on the need for any additional	8848
arts projects, Ohio arts facilities, and Ohio sports facilities.	8849
This division does not apply to state historical facilities.	8850

(B) Have jurisdiction, control, and possession of, and	8851
supervision over the use and disposition of, all property, rights,	8852
licenses, money, contracts, accounts, liens, books, records, and	8853
other property rights and interests conveyed, delivered,	8854
transferred, or assigned to it;	8855

(C) Use, and provide for the use of, Ohio arts facilities	8856
and Ohio sports facilities for the commission's purposes and	8857
functions, and conduct reviews necessary to ensure that uses of	8858
those facilities are consistent with statewide interests and the	8859
commission's purposes, including the presentation or making	8860
available of the arts and professional athletics and sports to the	8861
public in this state and the provision of training or education in	8862
the arts;	8863

(D) Hold a meeting, including the organizational meeting	8864
required by division (E) of section 3383.02 of the Revised Code,	8865
at least quarterly to conduct its business;	8866

(E) Cooperate with any governmental agency or arts	8867
organization that provides services in, to, or for an Ohio arts	8868
facility, and cooperate with any governmental agency or nonprofit	8869
corporation for the provision or operation of any Ohio sports	8870
facilities.	8871

Sec. 3385.01.  As used in this chapter:

8872

(A) "Loan" and "on loan" mean a deposit of property not	8873
accompanied by a transfer of title to the property.	8874

(B) "Museum" means any institution located in this state	8875
that is operated by a governmental agency or nonprofit corporation	8876
primarily for educational, scientific, aesthetic, historic, or	8877
preservation purposes and that acquires, owns, cares for,	8878
exhibits, studies, archives, or catalogs property. "Museum"	8879
includes, but is not limited to, historical societies, historic	8880
sites or landmarks, parks, monuments, libraries, arboreta, and	8881
zoos.	8882

(C) "Property" means any tangible, nonliving object in a	8883
museum's possession that has intrinsic historic, artistic,	8884
scientific, educational, or cultural value.	8885

Sec. 3385.02. (A) Property on loan to a museum other than	8886
pursuant to a written agreement shall be considered to be	8887
abandoned, and title to the property shall vest in the museum,	8888
free from all claims of the owner and of all persons claiming	8889
under the owner, if all of the following apply:	8890

(1) The property has been held by the museum within the	8891
state for at least seven years and, during that time, it remained	8892
unclaimed.	8893

(2) The museum gave notice of the abandonment of the	8894
property in accordance with section 3385.03 of the Revised Code.	8895

(3) No written assertion of title to the property was made	8896
by the owner of the property within ninety days after the date the	8897
notice was mailed or, if applicable, within ninety days after the	8898
date of the last published notice.	8899

(B) With respect to property on loan to a museum pursuant to	8900
a written agreement, the loan shall be considered to be	8901
terminated, and title to the property shall vest in the museum,	8902
free from all claims of the owner and of all persons claiming	8903
under the owner, if all of the following apply:	8904

(1) If the loan was for an indefinite term, the museum has	8905
held the property for at least seven years. If the loan was for a	8906
specified term, that term has expired.	8907

(2) The museum gave notice of the termination of the loan in	8908
accordance with section 3385.03 of the Revised Code.	8909

(3) No written assertion of title to the property was made	8910
by the owner of the property within six months after the date the	8911
notice was mailed or, if applicable, within six months after the	8912
date of the last published notice.	8913

Sec. 3385.03.  (A) A museum shall send notice of abandonment	8914
of property or termination of a loan by certified mail, return	8915
receipt requested, to the owner of the property at the owner's	8916
last known address as shown by the records of the museum. If the	8917
museum has no address on record, or the museum does not receive	8918
written proof of receipt of the notice within thirty days after	8919
the date the notice was mailed, the museum shall publish notice,	8920
at least twice over a sixty-day period, in a newspaper of general	8921
circulation in both the county in which the museum is located and	8922
the county in which the last known address of the owner, if	8923
available, is located.	8924

For purposes of this division, "records of the museum" means	8925
documents created or held by the museum in its regular course of	8926
business.	8927

(B) The mailed and published notices shall contain the	8928
following:	8929

(1) The date of the notice;

8930

(2) A general description of the property;

8931

(3) The name and, if available, the last known address of the	8932
owner of the property;	8933

(4) The approximate date the property was loaned to the	8934
museum;	8935

(5) The name and address of the appropriate museum official	8936
to be contacted regarding the notice;	8937

(6) For published notices, a request that anyone who may	8938
know the whereabouts of the owner of the property provide written	8939
notice to the museum;	8940

(7) For published notices, the publication date of the last	8941
notice.	8942

(C)(1) A notice of abandonment of property shall include a	8943
statement in substantially the following form:	8944

"The (name of museum) hereby asserts title to the following	8945
property: (general description of property). If you claim	8946
ownership or other legal interest in this property, you must	8947
contact (name of museum) in writing, establish ownership of the	8948
property, and make arrangements to collect the property. If you	8949
fail to do so within ninety days, the property will be considered	8950
abandoned and will become property of (name of museum)."	8951

(2) A notice of termination of a loan of property shall	8952
include a statement in substantially the following form:	8953

"The records of (name of museum) indicate that you have	8954
property on loan to it. The (name of museum) hereby terminates	8955
the loan. If you desire to claim the property, you must contact	8956
the (name of museum) in writing, establish ownership of the	8957
property, and make arrangements to collect the property. If you	8958
fail to do so within six months, you will be considered to have	8959
waived any claim you may have had to the property."	8960

(D) For purposes of this section, if a loan of property was	8961
made to a branch of the museum, the museum shall be considered to	8962
be located in the county in which the branch is located.	8963
Otherwise, the museum is considered to be located in the county in	8964
which it has its principal place of business.	8965

Sec. 3385.04.  (A) Unless there is a written loan agreement	8966
to the contrary, a museum may apply conservation measures to	8967
property on loan to the museum without notice to the owner or the	8968
owner's permission, if such measures are necessary to protect the	8969
property on loan or other property in the custody of the museum or	8970
if the property on loan is a hazard to the health and safety of	8971
the museum staff or the public, and if either of the following	8972
applies:	8973

(1) The museum attempts but is unable to notify the owner at	8974
the owner's last known address not later than three days before	8975
the date the museum intends to apply the conservation measures.	8976

(2) The museum notifies the owner not later than three days	8977
before the date the museum intends to apply the conservation	8978
measures, the owner does not agree to those measures, and the	8979
owner does not terminate the loan and retrieve the property within	8980
three days after receipt of the notice.	8981

(B) If a museum applies conservation measures in accordance	8982
with division (A) of this section or with the agreement of the	8983
owner, both of the following apply:	8984

(1) The museum shall acquire a lien on the property in the	8985
amount of the expenses incurred by the museum, unless the	8986
agreement provides otherwise.	8987

(2) The museum is not liable for injury to or loss of the	8988
property, if the museum did both of the following:	8989

(a) Reasonably believed at the time the conservation	8990
measures were taken that the measures were necessary to protect	8991
the property on loan or other property in the custody of the	8992
museum, or that the property on loan was a hazard to the health	8993
and safety of the museum staff or the public;	8994

(b) Exercised reasonable care in the choice and application	8995
of the conservation measures.	8996

Sec. 3385.05.  Upon accepting property on loan, a museum	8997
shall provide a written summary of the provisions of this chapter	8998
to the owner of the property.	8999

Sec. 3385.06. The owner of any property on loan to a museum	9000
shall promptly notify the museum in writing of any change of the	9001
owner's address or change in ownership of the property.	9002

Sec. 3385.07.  Any property that, on or after the effective	9003
date of this section, is delivered to a museum or left on museum	9004
property, is not solicited by the museum, is from an unknown	9005
source, and might reasonably be assumed to have been intended as a	9006
gift to the museum, shall conclusively be presumed to be a gift to	9007
the museum, if there is no claim of ownership to the property	9008
within ninety days after the museum receives or otherwise	9009
discovers the property.	9010

Sec. 3385.08.  The provisions of this chapter may be varied	9011
by written agreement of the parties.	9012

Sec. 3385.09.  (A) Property on loan to a museum shall not	9013
escheat to the state under any applicable escheat law, but shall	9014
pass to the museum under the provisions of this chapter.	9015

(B) This chapter does not apply to property interests other	9016
than those specifically described in this chapter.	9017

Sec. 3385.10.  A museum that acquires title to property in	9018
accordance with this chapter passes good title when transferring	9019
that property with the intent to pass title.	9020

Sec. 3519.04.  Upon receipt of the verified copy of a	9021
proposed state law or constitutional amendment proposing the levy	9022
of any tax or involving a matter whichthat will necessitate the	9023
expenditure of any funds of the state or any political subdivision	9024
thereofof the state, the secretary of state shall request of the	9025
tax commissioneroffice of budget and management an estimate of	9026
any annual expenditure of public funds proposed and of the tax	9027
commissioner the annual yield of any proposed taxes. The office of	9028
budget and management, on receipt of a request for an estimate of	9029
the annual expenditure of public funds proposed, shall prepare the	9030
estimate and file it in the office of the secretary of state. The	9031
tax commissioner, on receipt of sucha request for an estimate of	9032
the annual yield of any proposed taxes, shall prepare the estimate	9033
and file it in the office of the secretary of state. The	9034
secretary of state shall distribute copies of such estimate with	9035
the pamphlets prescribed in section 3519.19 of the Revised Code	9036
office of budget and management and the tax commissioner may issue	9037
a joint estimate if the proposed state law or constitutional	9038
amendment necessitates both the expenditure of public funds and a	9039
levy of any tax.	9040

Sec. 3702.5210.  The Ohio veterans' home operated under	9041
Chapter 5907. of the Revised Code that is located in Sandusky is	9042
not required to obtain a certificate of need to increase bed	9043
capacity in its Secrest-Giffin nursing home by not more than	9044
twenty-five long-term care beds prior to June 30, 1997.	9045

Sec. 3702.5211.  Notwithstanding sections 3702.51 to 3702.68	9046
of the Revised Code, the Ohio veteran'sveterans' home operated	9047
under Chapter 5907. of the Revised Code that is located in	9048
Sandusky, including the Secrest nursing home and Giffin care	9049
facility, is not required to obtain a certificate of need for the	9050
addition of up to fifty-two additional nursing home beds to be	9051
licensed under Chapter 3721. of the Revised Code if the additional	9052
beds are placed in service prior to June 30, 1999.	9053

Sec. 3702.5213. Notwithstanding sections 3702.51 to 3702.68	9054
of the Revised Code, the southern Ohio veteransveterans' home	9055
operated under Chapter 5907. of the Revised Code that is located	9056
in Brown county is not required to obtain a certificate of need	9057
for the addition of up to one hundred sixty-eight additional	9058
nursing home beds to be licensed under Chapter 3721. of the	9059
Revised Code if the additional beds are placed in service prior to	9060
December 31, 2004.	9061

Sec. 3721.01.  (A) As used in sections 3721.01 to 3721.09	9062
and 3721.99 of the Revised Code:	9063

(1)(a) "Home" means an institution, residence, or facility	9064
that provides, for a period of more than twenty-four hours,	9065
whether for a consideration or not, accommodations to three or	9066
more unrelated individuals who are dependent upon the services of	9067
others, including a nursing home, residential care facility, home	9068
for the aging, and the Ohioa veterans' home operated under	9069
Chapter 5907. of the Revised Code.	9070

(b) "Home" also means both of the following:

9071

(i) Any facility that a person, as defined in section	9072
3702.51 of the Revised Code, proposes for certification as a	9073
skilled nursing facility or nursing facility under Title XVIII or	9074
XIX of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A.	9075
301, as amended, and for which a certificate of need, other than a	9076
certificate to recategorize hospital beds as described in section	9077
3702.522 of the Revised Code or division (R)(7)(d) of the version	9078
of section 3702.51 of the Revised Code in effect immediately prior	9079
to April 20, 1995, has been granted to the person under sections	9080
3702.51 to 3702.62 of the Revised Code after August 5, 1989;	9081

(ii) A county home or district home that is or has been	9082
licensed as a residential care facility.	9083

(c) "Home" does not mean any of the following:

9084

(i) Except as provided in division (A)(1)(b) of this	9085
section, a public hospital or hospital as defined in section	9086
3701.01 or 5122.01 of the Revised Code;	9087

(ii) A residential facility for mentally ill persons as	9088
defined under section 5119.22 of the Revised Code;	9089

(iii) A residential facility as defined in section 5123.19	9090
of the Revised Code;	9091

(iv) A habilitation center as defined in section 5123.041 of	9092
the Revised Code;	9093

(v) A community alternative home as defined in section	9094
3724.01 of the Revised Code;	9095

(vi) An adult care facility as defined in section 3722.01 of	9096
the Revised Code;	9097

(vii) An alcohol or drug addiction program as defined in	9098
section 3793.01 of the Revised Code;	9099

(viii) A facility licensed to provide methadone treatment	9100
under section 3793.11 of the Revised Code;	9101

(ix) A facility providing services under contract with the	9102
department of mental retardation and developmental disabilities	9103
under section 5123.18 of the Revised Code;	9104

(x) A facility operated by a hospice care program licensed	9105
under section 3712.04 of the Revised Code that is used exclusively	9106
for care of hospice patients;	9107

(xi) A facility, infirmary, or other entity that is operated	9108
by a religious order, provides care exclusively to members of	9109
religious orders who take vows of celibacy and live by virtue of	9110
their vows within the orders as if related, and does not	9111
participate in the medicare program established under Title XVIII	9112
of the "Social Security Act" or the medical assistance program	9113
established under Chapter 5111. of the Revised Code and Title XIX	9114
of the "Social Security Act," if on January 1, 1994, the facility,	9115
infirmary, or entity was providing care exclusively to members of	9116
the religious order;	9117

(xii) A county home or district home that has never been	9118
licensed as a residential care facility.	9119

(2) "Unrelated individual" means one who is not related to	9120
the owner or operator of a home or to the spouse of the owner or	9121
operator as a parent, grandparent, child, grandchild, brother,	9122
sister, niece, nephew, aunt, uncle, or as the child of an aunt or	9123
uncle.	9124

(3) "Mental impairment" does not mean mental illness as	9125
defined in section 5122.01 of the Revised Code or mental	9126
retardation as defined in section 5123.01 of the Revised Code.	9127

(4) "Skilled nursing care" means procedures that require	9128
technical skills and knowledge beyond those the untrained person	9129
possesses and that are commonly employed in providing for the	9130
physical, mental, and emotional needs of the ill or otherwise	9131
incapacitated. "Skilled nursing care" includes, but is not	9132
limited to, the following:	9133

(a) Irrigations, catheterizations, application of dressings,	9134
and supervision of special diets;	9135

(b) Objective observation of changes in the patient's	9136
condition as a means of analyzing and determining the nursing care	9137
required and the need for further medical diagnosis and treatment;	9138

(c) Special procedures contributing to rehabilitation;

9139

(d) Administration of medication by any method ordered by a	9140
physician, such as hypodermically, rectally, or orally, including	9141
observation of the patient after receipt of the medication;	9142

(e) Carrying out other treatments prescribed by the	9143
physician that involve a similar level of complexity and skill in	9144
administration.	9145

(5)(a) "Personal care services" means services including,	9146
but not limited to, the following:	9147

(i) Assisting residents with activities of daily living;

9148

(ii) Assisting residents with self-administration of	9149
medication, in accordance with rules adopted under section 3721.04	9150
of the Revised Code;	9151

(iii) Preparing special diets, other than complex	9152
therapeutic diets, for residents pursuant to the instructions of a	9153
physician or a licensed dietitian, in accordance with rules	9154
adopted under section 3721.04 of the Revised Code.	9155

(b) "Personal care services" does not include "skilled	9156
nursing care" as defined in division (A)(4) of this section. A	9157
facility need not provide more than one of the services listed in	9158
division (A)(5)(a) of this section to be considered to be	9159
providing personal care services.	9160

(6) "Nursing home" means a home used for the reception and	9161
care of individuals who by reason of illness or physical or mental	9162
impairment require skilled nursing care and of individuals who	9163
require personal care services but not skilled nursing care. A	9164
nursing home is licensed to provide personal care services and	9165
skilled nursing care.	9166

(7) "Residential care facility" means a home that provides	9167
either of the following:	9168

(a) Accommodations for seventeen or more unrelated	9169
individuals and supervision and personal care services for three	9170
or more of those individuals who are dependent on the services of	9171
others by reason of age or physical or mental impairment;	9172

(b) Accommodations for three or more unrelated individuals,	9173
supervision and personal care services for at least three of those	9174
individuals who are dependent on the services of others by reason	9175
of age or physical or mental impairment, and, to at least one of	9176
those individuals, any of the skilled nursing care authorized by	9177
section 3721.011 of the Revised Code.	9178

(8) "Home for the aging" means a home that provides services	9179
as a residential care facility and a nursing home, except that the	9180
home provides its services only to individuals who are dependent	9181
on the services of others by reason of both age and physical or	9182
mental impairment.	9183

The part or unit of a home for the aging that provides	9184
services only as a residential care facility is licensed as a	9185
residential care facility. The part or unit that may provide	9186
skilled nursing care beyond the extent authorized by section	9187
3721.011 of the Revised Code is licensed as a nursing home.	9188

(9) "County home" and "district home" mean a county home or	9189
district home operated under Chapter 5155. of the Revised Code.	9190

(B) The public health council may further classify homes.	9191
For the purposes of this chapter, any residence, institution,	9192
hotel, congregate housing project, or similar facility that meets	9193
the definition of a home under this section is such a home	9194
regardless of how the facility holds itself out to the public.	9195

(C) For purposes of this chapter, personal care services or	9196
skilled nursing care shall be considered to be provided by a	9197
facility if they are provided by a person employed by or	9198
associated with the facility or by another person pursuant to an	9199
agreement to which neither the resident who receives the services	9200
nor the resident's sponsor is a party.	9201

(D) Nothing in division (A)(4) of this section shall be	9202
construed to permit skilled nursing care to be imposed on an	9203
individual who does not require skilled nursing care.	9204

Nothing in division (A)(5) of this section shall be construed	9205
to permit personal care services to be imposed on an individual	9206
who is capable of performing the activity in question without	9207
assistance.	9208

(E) Division (A)(1)(c)(xi) of this section does not prohibit	9209
a facility, infirmary, or other entity described in that division	9210
from seeking licensure under sections 3721.01 to 3721.09 of the	9211
Revised Code or certification under Title XVIII or XIX of the	9212
"Social Security Act." However, such a facility, infirmary, or	9213
entity that applies for licensure or certification must meet the	9214
requirements of those sections or titles and the rules adopted	9215
under them and obtain a certificate of need from the director of	9216
health under section 3702.52 of the Revised Code.	9217

(F) Nothing in this chapter, or rules adopted pursuant to	9218
it, shall be construed as authorizing the supervision, regulation,	9219
or control of the spiritual care or treatment of residents or	9220
patients in any home who rely upon treatment by prayer or	9221
spiritual means in accordance with the creed or tenets of any	9222
recognized church or religious denomination.	9223

Sec. 3737.71.  Each insurance company doing business in this	9224
state shall pay to the state in installments, at the time of	9225
making the payments required by section 5729.05 of the Revised	9226
Code, in addition to the taxes required to be paid by it,	9227
three-fourths of one per cent on the gross premium receipts	9228
derived from fire insurance and that portion of the premium	9229
reasonably allocable to insurance against the hazard of fire	9230
included in other coverages except life and sickness and accident	9231
insurance, after deducting return premiums paid and considerations	9232
received for reinsurances as shown by the annual statement of such	9233
company made pursuant to sections 3929.30, 3931.06, and 5729.02 of	9234
the Revised Code. The money received shall be paid into the state	9235
treasury to the credit of the state fire marshal's fund, which is	9236
hereby created. The fund shall be used for the maintenance and	9237
administration of the office of the fire marshal and to defray the	9238
costs of operating the Ohio fire academy established by section	9239
3737.33 of the Revised Code. If the director of commerce certifies	9240
to the director of budget and management that the cash balance in	9241
the state fire marshal's fund is in excess of the amount needed to	9242
pay ongoing operating expenses, the director may use the excess	9243
amount to acquire by purchase, lease, or otherwise, real property	9244
or interests in real property to be used for the benefit of the	9245
office of the state fire marshal, or to construct, acquire,	9246
enlarge, equip, furnish, or improve the fire marshal's office	9247
facilities or the facilities of the Ohio fire academy. The state	9248
fire marshal's fund shall be assessed a proportionate share of the	9249
administrative costs of the department of commerce in accordance	9250
with procedures prescribed by the director of commerce and	9251
approved by the director of budget and management. Such	9252
assessment shall be paid from the state fire marshal's fund to the	9253
division of administration fund.	9254

Sec. 4117.01.  As used in this chapter:

9255

(A) "Person," in addition to those included in division (C)	9256
of section 1.59 of the Revised Code, includes employee	9257
organizations, public employees, and public employers.	9258

(B) "Public employer" means the state or any political	9259
subdivision of the state located entirely within the state,	9260
including, without limitation, any municipal corporation with a	9261
population of at least five thousand according to the most recent	9262
federal decennial census; county; township with a population of at	9263
least five thousand in the unincorporated area of the township	9264
according to the most recent federal decennial census; school	9265
district; governing authority of a community school established	9266
under Chapter 3314. of the Revised Code; state institution of	9267
higher learning; public or special district; state agency,	9268
authority, commission, or board; or other branch of public	9269
employment.	9270

(C) "Public employee" means any person holding a position by	9271
appointment or employment in the service of a public employer,	9272
including any person working pursuant to a contract between a	9273
public employer and a private employer and over whom the national	9274
labor relations board has declined jurisdiction on the basis that	9275
the involved employees are employees of a public employer, except:	9276

(1) Persons holding elective office;

9277

(2) Employees of the general assembly and employees of any	9278
other legislative body of the public employer whose principal	9279
duties are directly related to the legislative functions of the	9280
body;	9281

(3) Employees on the staff of the governor or the chief	9282
executive of the public employer whose principal duties are	9283
directly related to the performance of the executive functions of	9284
the governor or the chief executive;	9285

(4) Persons who are members of the Ohio organized militia,	9286
while training or performing duty under section 5919.29 or 5923.12	9287
of the Revised Code;	9288

(5) Employees of the state employment relations board;

9289

(6) Confidential employees;

9290

(7) Management level employees;

9291

(8) Employees and officers of the courts, assistants to the	9292
attorney general, assistant prosecuting attorneys, and employees	9293
of the clerks of courts who perform a judicial function;	9294

(9) Employees of a public official who act in a fiduciary	9295
capacity, appointed pursuant to section 124.11 of the Revised	9296
Code;	9297

(10) Supervisors;

9298

(11) Students whose primary purpose is educational training,	9299
including graduate assistants or associates, residents, interns,	9300
or other students working as part-time public employees less than	9301
fifty per cent of the normal year in the employee's bargaining	9302
unit;	9303

(12) Employees of county boards of election;

9304

(13) Seasonal and casual employees as determined by the	9305
state employment relations board;	9306

(14) Part-time faculty members of an institution of higher	9307
education;	9308

(15) Employees of the state personnel board of review;

9309

(16) Employees of the board of directors of the Ohio	9310
low-level radioactive waste facility development authority created	9311
in section 3747.05 of the Revised Code;	9312

(17) Participants in a work activity, developmental	9313
activity, or alternative work activity under sections 5107.40 to	9314
5107.69 of the Revised Code who perform a service for a public	9315
employer that the public employer needs but is not performed by an	9316
employee of the public employer if the participant is not engaged	9317
in paid employment or subsidized employment pursuant to the	9318
activity;	9319

(18) Employees included in the career professional service	9320
of the department of transportation under section 5501.20 of the	9321
Revised Code;	9322

(19) Employees who must be licensed to practice law in this	9323
state to perform their duties as employees.	9324

(D) "Employee organization" means any labor or bona fide	9325
organization in which public employees participate and that exists	9326
for the purpose, in whole or in part, of dealing with public	9327
employers concerning grievances, labor disputes, wages, hours,	9328
terms, and other conditions of employment.	9329

(E) "Exclusive representative" means the employee	9330
organization certified or recognized as an exclusive	9331
representative under section 4117.05 of the Revised Code.	9332

(F) "Supervisor" means any individual who has authority, in	9333
the interest of the public employer, to hire, transfer, suspend,	9334
lay off, recall, promote, discharge, assign, reward, or discipline	9335
other public employees; to responsibly direct them; to adjust	9336
their grievances; or to effectively recommend such action, if the	9337
exercise of that authority is not of a merely routine or clerical	9338
nature, but requires the use of independent judgment, provided	9339
that:	9340

(1) Employees of school districts who are department	9341
chairpersons or consulting teachers shall not be deemed	9342
supervisors;	9343

(2) With respect to members of a police or fire department,	9344
no person shall be deemed a supervisor except the chief of the	9345
department or those individuals who, in the absence of the chief,	9346
are authorized to exercise the authority and perform the duties of	9347
the chief of the department. Where prior to June 1, 1982, a	9348
public employer pursuant to a judicial decision, rendered in	9349
litigation to which the public employer was a party, has declined	9350
to engage in collective bargaining with members of a police or	9351
fire department on the basis that those members are supervisors,	9352
those members of a police or fire department do not have the	9353
rights specified in this chapter for the purposes of future	9354
collective bargaining. The state employment relations board shall	9355
decide all disputes concerning the application of division (F)(2)	9356
of this section.	9357

(3) With respect to faculty members of a state institution	9358
of higher education, heads of departments or divisions are	9359
supervisors; however, no other faculty member or group of faculty	9360
members is a supervisor solely because the faculty member or group	9361
of faculty members participate in decisions with respect to	9362
courses, curriculum, personnel, or other matters of academic	9363
policy;	9364

(4) No teacher as defined in section 3319.09 of the Revised	9365
Code shall be designated as a supervisor or a management level	9366
employee unless the teacher is employed under a contract governed	9367
by section 3319.01, 3319.011, or 3319.02 of the Revised Code and	9368
is assigned to a position for which a license deemed to be for	9369
administrators under state board rules is required pursuant to	9370
section 3319.22 of the Revised Code.	9371

(G) "To bargain collectively" means to perform the mutual	9372
obligation of the public employer, by its representatives, and the	9373
representatives of its employees to negotiate in good faith at	9374
reasonable times and places with respect to wages, hours, terms,	9375
and other conditions of employment and the continuation,	9376
modification, or deletion of an existing provision of a collective	9377
bargaining agreement, with the intention of reaching an agreement,	9378
or to resolve questions arising under the agreement. "To bargain	9379
collectively" includes executing a written contract incorporating	9380
the terms of any agreement reached. The obligation to bargain	9381
collectively does not mean that either party is compelled to agree	9382
to a proposal nor does it require the making of a concession.	9383

(H) "Strike" means continuous concerted action in failing to	9384
report to duty; willful absence from one's position; or stoppage	9385
of work in whole from the full, faithful, and proper performance	9386
of the duties of employment, for the purpose of inducing,	9387
influencing, or coercing a change in wages, hours, terms, and	9388
other conditions of employment. "Strike" does not include a	9389
stoppage of work by employees in good faith because of dangerous	9390
or unhealthful working conditions at the place of employment that	9391
are abnormal to the place of employment.	9392

(I) "Unauthorized strike" includes, but is not limited to,	9393
concerted action during the term or extended term of a collective	9394
bargaining agreement or during the pendency of the settlement	9395
procedures set forth in section 4117.14 of the Revised Code in	9396
failing to report to duty; willful absence from one's position;	9397
stoppage of work; slowdown, or abstinence in whole or in part from	9398
the full, faithful, and proper performance of the duties of	9399
employment for the purpose of inducing, influencing, or coercing a	9400
change in wages, hours, terms, and other conditions of employment.	9401
"Unauthorized strike" includes any such action, absence, stoppage,	9402
slowdown, or abstinence when done partially or intermittently,	9403
whether during or after the expiration of the term or extended	9404
term of a collective bargaining agreement or during or after the	9405
pendency of the settlement procedures set forth in section 4117.14	9406
of the Revised Code.	9407

(J) "Professional employee" means any employee engaged in	9408
work that is predominantly intellectual, involving the consistent	9409
exercise of discretion and judgment in its performance and	9410
requiring knowledge of an advanced type in a field of science or	9411
learning customarily acquired by a prolonged course in an	9412
institution of higher learning or a hospital, as distinguished	9413
from a general academic education or from an apprenticeship; or an	9414
employee who has completed the courses of specialized intellectual	9415
instruction and is performing related work under the supervision	9416
of a professional person to become qualified as a professional	9417
employee.	9418

(K) "Confidential employee" means any employee who works in	9419
the personnel offices of a public employer and deals with	9420
information to be used by the public employer in collective	9421
bargaining; or any employee who works in a close continuing	9422
relationship with public officers or representatives directly	9423
participating in collective bargaining on behalf of the employer.	9424

(L) "Management level employee" means an individual who	9425
formulates policy on behalf of the public employer, who	9426
responsibly directs the implementation of policy, or who may	9427
reasonably be required on behalf of the public employer to assist	9428
in the preparation for the conduct of collective negotiations,	9429
administer collectively negotiated agreements, or have a major	9430
role in personnel administration. Assistant superintendents,	9431
principals, and assistant principals whose employment is governed	9432
by section 3319.02 of the Revised Code are management level	9433
employees. With respect to members of a faculty of a state	9434
institution of higher education, no person is a management level	9435
employee because of the person's involvement in the formulation or	9436
implementation of academic or institution policy.	9437

(M) "Wages" means hourly rates of pay, salaries, or other	9438
forms of compensation for services rendered.	9439

(N) "Member of a police department" means a person who is in	9440
the employ of a police department of a municipal corporation as a	9441
full-time regular police officer as the result of an appointment	9442
from a duly established civil service eligibility list or under	9443
section 737.15 or 737.16 of the Revised Code, a full-time deputy	9444
sheriff appointed under section 311.04 of the Revised Code, a	9445
township constable appointed under section 509.01 of the Revised	9446
Code, or a member of a township police district police department	9447
appointed under section 505.49 of the Revised Code.	9448

(O) "Members of the state highway patrol" means highway	9449
patrol troopers and radio operators appointed under section	9450
5503.01 of the Revised Code.	9451

(P) "Member of a fire department" means a person who is in	9452
the employ of a fire department of a municipal corporation or a	9453
township as a fire cadet, full-time regular firefighter, or	9454
promoted rank as the result of an appointment from a duly	9455
established civil service eligibility list or under section	9456
505.38, 709.012, or 737.22 of the Revised Code.	9457

(Q) "Day" means calendar day.

9458

Sec. 4117.14.  (A) The procedures contained in this section	9459
govern the settlement of disputes between an exclusive	9460
representative and a public employer concerning the termination or	9461
modification of an existing collective bargaining agreement or	9462
negotiation of a successor agreement, or the negotiation of an	9463
initial collective bargaining agreement.	9464

(B)(1) In those cases where there exists a collective	9465
bargaining agreement, any public employer or exclusive	9466
representative desiring to terminate, modify, or negotiate a	9467
successor collective bargaining agreement shall:	9468

(a) Serve written notice upon the other party of the	9469
proposed termination, modification, or successor agreement. The	9470
party must serve the notice not less than sixty days prior to the	9471
expiration date of the existing agreement or, in the event the	9472
existing collective bargaining agreement does not contain an	9473
expiration date, not less than sixty days prior to the time it is	9474
proposed to make the termination or modifications or to make	9475
effective a successor agreement.	9476

(b) Offer to bargain collectively with the other party for	9477
the purpose of modifying or terminating any existing agreement or	9478
negotiating a successor agreement;	9479

(c) Notify the state employment relations board of the offer	9480
by serving upon the board a copy of the written notice to the	9481
other party and a copy of the existing collective bargaining	9482
agreement.	9483

(2) In the case of initial negotiations between a public	9484
employer and an exclusive representative, where a collective	9485
bargaining agreement has not been in effect between the parties,	9486
any party may serve notice upon the board and the other party	9487
setting forth the names and addresses of the parties and offering	9488
to meet, for a period of ninety days, with the other party for the	9489
purpose of negotiating a collective bargaining agreement.	9490

If the settlement procedures specified in divisions (B), (C),	9491
and (D) of this section govern the parties, where those procedures	9492
refer to the expiration of a collective bargaining agreement, it	9493
means the expiration of the sixty-day period to negotiate a	9494
collective bargaining agreement referred to in this subdivision,	9495
or in the case of initial negotiations, it means the ninety day	9496
period referred to in this subdivision.	9497

(3) The parties shall continue in full force and effect all	9498
the terms and conditions of any existing collective bargaining	9499
agreement, without resort to strike or lock-out, for a period of	9500
sixty days after the party gives notice or until the expiration	9501
date of the collective bargaining agreement, whichever occurs	9502
later, or for a period of ninety days where applicable.	9503

(4) Upon receipt of the notice, the parties shall enter into	9504
collective bargaining.	9505

(C) In the event the parties are unable to reach an	9506
agreement, they may submit, at any time prior to forty-five days	9507
before the expiration date of the collective bargaining agreement,	9508
the issues in dispute to any mutually agreed upon dispute	9509
settlement procedure which supersedes the procedures contained in	9510
this section.	9511

(1) The procedures may include:

9512

(a) Conventional arbitration of all unsettled issues;

9513

(b) Arbitration confined to a choice between the last offer	9514
of each party to the agreement as a single package;	9515

(c) Arbitration confined to a choice of the last offer of	9516
each party to the agreement on each issue submitted;	9517

(d) The procedures described in division (C)(1)(a), (b), or	9518
(c) of this section and including among the choices for the	9519
arbitrator, the recommendations of the fact finder, if there are	9520
recommendations, either as a single package or on each issue	9521
submitted;	9522

(e) Settlement by a citizens' conciliation council composed	9523
of three residents within the jurisdiction of the public employer.	9524
The public employer shall select one member and the exclusive	9525
representative shall select one member. The two members selected	9526
shall select the third member who shall chair the council. If the	9527
two members cannot agree upon a third member within five days	9528
after their appointments, the board shall appoint the third	9529
member. Once appointed, the council shall make a final settlement	9530
of the issues submitted to it pursuant to division (G) of this	9531
section.	9532

(f) Any other dispute settlement procedure mutually agreed	9533
to by the parties.	9534

(2) If, fifty days before the expiration date of the	9535
collective bargaining agreement, the parties are unable to reach	9536
an agreement, any party may request the state employment relations	9537
board to intervene. The request shall set forth the names and	9538
addresses of the parties, the issues involved, and, if applicable,	9539
the expiration date of any agreement.	9540

The board shall intervene and investigate the dispute to	9541
determine whether the parties have engaged in collective	9542
bargaining.	9543

If an impasse exists or forty-five days before the expiration	9544
date of the collective bargaining agreement if one exists, the	9545
board shall appoint a mediator to assist the parties in the	9546
collective bargaining process.	9547

(3) If the mediator after assisting the parties advises the	9548
board that the parties have reached an impasse, or not later than	9549
thirty-one days prior to the expiration date of the agreement, the	9550
board shall appoint within one day a fact-finding panel of not	9551
more than three members who have been selected by the parties in	9552
accordance with rules established by the board, from a list of	9553
qualified persons maintained by the board.	9554

(a) The fact-finding panel shall, in accordance with rules	9555
and procedures established by the board that include the	9556
regulation of costs and expenses of fact-finding, gather facts and	9557
make recommendations for the resolution of the matter. The board	9558
shall by its rules require each party to specify in writing the	9559
unresolved issues and its position on each issue to the	9560
fact-finding panel. The fact-finding panel shall make final	9561
recommendations as to all the unresolved issues.	9562

(b) The board may continue mediation, order the parties to	9563
engage in collective bargaining until the expiration date of the	9564
agreement, or both.	9565

(4) The following guidelines apply to fact-finding:

9566

(a) The fact-finding panel may establish times and place of	9567
hearings which shall be, where feasible, in the jurisdiction of	9568
the state.	9569

(b) The fact-finding panel shall conduct the hearing	9570
pursuant to rules established by the board.	9571

(c) Upon request of the fact-finding panel, the board shall	9572
issue subpoenas for hearings conducted by the panel.	9573

(d) The fact-finding panel may administer oaths.

9574

(e) The board shall prescribe guidelines for the	9575
fact-finding panel to follow in making findings. In making its	9576
recommendations, the fact-finding panel shall take into	9577
consideration the factors listed in divisions (G)(7)(a) to (f) of	9578
this section.	9579

(f) The fact-finding panel may attempt mediation at any time	9580
during the fact-finding process. From the time of appointment	9581
until the fact-finding panel makes a final recommendation, it	9582
shall not discuss the recommendations for settlement of the	9583
dispute with parties other than the direct parties to the dispute.	9584

(5) The fact-finding panel, acting by a majority of its	9585
members, shall transmit its findings of fact and recommendations	9586
on the unresolved issues to the public employer and employee	9587
organization involved and to the board no later than fourteen days	9588
after the appointment of the fact-finding panel, unless the	9589
parties mutually agree to an extension. The state shall pay	9590
one-half the cost of the fact-finding panel. The parties each	9591
shall pay one-half of the remaining costs.	9592

(6)(a) Not later than seven days after the findings and	9593
recommendations are sent, the legislative body, by a three-fifths	9594
vote of its total membership, and in the case of the public	9595
employee organization, the membership, by a three-fifths vote of	9596
the total membership, may reject the recommendations; if neither	9597
rejects the recommendations, the recommendations shall be deemed	9598
agreed upon as the final resolution of the issues submitted and a	9599
collective bargaining agreement shall be executed between the	9600
parties, including the fact-finding panel's recommendations,	9601
except as otherwise modified by the parties by mutual agreement.	9602
If either the legislative body or the public employee organization	9603
rejects the recommendations, the board shall publicize the	9604
findings of fact and recommendations of the fact-finding panel.	9605
The board shall adopt rules governing the procedures and methods	9606
for public employees to vote on the recommendations of the	9607
fact-finding panel.	9608

(b) As used in division (C)(6)(a) of this section,	9609
"legislative body" means the controlling board when the state or	9610
any of its agencies, authorities, commissions, boards, or other	9611
branch of public employment is party to the fact-finding process.	9612

(D) If the parties are unable to reach agreement within	9613
seven days after the publication of findings and recommendations	9614
from the fact-finding panel or the collective bargaining	9615
agreement, if one exists, has expired, then the:	9616

(1) Public employees, who are members of a police or fire	9617
department, members of the state highway patrol, deputy sheriffs,	9618
dispatchers employed by a police, fire or sheriff's department or	9619
the state highway patrol or civilian dispatchers employed by a	9620
public employer other than a police, fire, or sheriff's department	9621
to dispatch police, fire, sheriff's department, or emergency	9622
medical or rescue personnel and units, an exclusive nurse's unit,	9623
employees of the state school for the deaf or the state school for	9624
the blind, employees of any public employee retirement system,	9625
corrections officers, guards at penal or mental institutions,	9626
special police officers appointed in accordance with sections	9627
5119.14 and 5123.13 of the Revised Code, psychiatric attendants	9628
employed at mental health forensic facilities, or youth leaders	9629
employed at juvenile correctional facilities, shall submit the	9630
matter to a final offer settlement procedure pursuant to a board	9631
order issued forthwith to the parties to settle by a conciliator	9632
selected by the parties. The parties shall request from the board	9633
a list of five qualified conciliators and the parties shall select	9634
a single conciliator from the list by alternate striking of names.	9635
If the parties cannot agree upon a conciliator within five days	9636
after the board order, the board shall on the sixth day after its	9637
order appoint a conciliator from a list of qualified persons	9638
maintained by the board or shall request a list of qualified	9639
conciliators from the American arbitration association and appoint	9640
therefrom.	9641

(2) Public employees other than those listed in division	9642
(D)(1) of this section have the right to strike under Chapter	9643
4117. of the Revised Code provided that the employee organization	9644
representing the employees has given a ten-day prior written	9645
notice of an intent to strike to the public employer and to the	9646
board, and further provided that the strike is for full,	9647
consecutive work days and the beginning date of the strike is at	9648
least ten work days after the ending date of the most recent prior	9649
strike involving the same bargaining unit; however, the board, at	9650
its discretion, may attempt mediation at any time.	9651

(E) Nothing in this section shall be construed to prohibit	9652
the parties, at any time, from voluntarily agreeing to submit any	9653
or all of the issues in dispute to any other alternative dispute	9654
settlement procedure. An agreement or statutory requirement to	9655
arbitrate or to settle a dispute pursuant to a final offer	9656
settlement procedure and the award issued in accordance with the	9657
agreement or statutory requirement is enforceable in the same	9658
manner as specified in division (B) of section 4117.09 of the	9659
Revised Code.	9660

(F) Nothing in this section shall be construed to prohibit a	9661
party from seeking enforcement of a collective bargaining	9662
agreement or a conciliator's award as specified in division (B) of	9663
section 4117.09 of the Revised Code.	9664

(G) The following guidelines apply to final offer settlement	9665
proceedings under division (D)(1) of this section:	9666

(1) The parties shall submit to final offer settlement those	9667
issues that are subject to collective bargaining as provided by	9668
section 4117.08 of the Revised Code and upon which the parties	9669
have not reached agreement and other matters mutually agreed to by	9670
the public employer and the exclusive representative; except that	9671
the conciliator may attempt mediation at any time.	9672

(2) The conciliator shall hold a hearing within thirty days	9673
of the board's order to submit to a final offer settlement	9674
procedure, or as soon thereafter as is practicable.	9675

(3) The conciliator shall conduct the hearing pursuant to	9676
rules developed by the board. The conciliator shall establish the	9677
hearing time and place, but it shall be, where feasible, within	9678
the jurisdiction of the state. Not later than five calendar days	9679
before the hearing, each of the parties shall submit to the	9680
conciliator, to the opposing party, and to the board, a written	9681
report summarizing the unresolved issues, the party's final offer	9682
as to the issues, and the rationale for that position.	9683

(4) Upon the request by the conciliator, the board shall	9684
issue subpoenas for the hearing.	9685

(5) The conciliator may administer oaths.

9686

(6) The conciliator shall hear testimony from the parties	9687
and provide for a written record to be made of all statements at	9688
the hearing. The board shall submit for inclusion in the record	9689
and for consideration by the conciliator the written report and	9690
recommendation of the fact-finders.	9691

(7) After hearing, the conciliator shall resolve the dispute	9692
between the parties by selecting, on an issue-by-issue basis, from	9693
between each of the party's final settlement offers, taking into	9694
consideration the following:	9695

(a) Past collectively bargained agreements, if any, between	9696
the parties;	9697

(b) Comparison of the issues submitted to final offer	9698
settlement relative to the employees in the bargaining unit	9699
involved with those issues related to other public and private	9700
employees doing comparable work, giving consideration to factors	9701
peculiar to the area and classification involved;	9702

(c) The interests and welfare of the public, the ability of	9703
the public employer to finance and administer the issues proposed,	9704
and the effect of the adjustments on the normal standard of public	9705
service;	9706

(d) The lawful authority of the public employer;

9707

(e) The stipulations of the parties;

9708

(f) Such other factors, not confined to those listed in this	9709
section, which are normally or traditionally taken into	9710
consideration in the determination of the issues submitted to	9711
final offer settlement through voluntary collective bargaining,	9712
mediation, fact-finding, or other impasse resolution procedures in	9713
the public service or in private employment.	9714

(8) Final offer settlement awards made under Chapter 4117.	9715
of the Revised Code are subject to Chapter 2711. of the Revised	9716
Code.	9717

(9) If more than one conciliator is used, the determination	9718
must be by majority vote.	9719

(10) The conciliator shall make written findings of fact and	9720
promulgate a written opinion and order upon the issues presented	9721
to the conciliator, and upon the record made before the	9722
conciliator and shall mail or otherwise deliver a true copy	9723
thereof to the parties and the board.	9724

(11) Increases in rates of compensation and other matters	9725
with cost implications awarded by the conciliator may be effective	9726
only at the start of the fiscal year next commencing after the	9727
date of the final offer settlement award; provided that if a new	9728
fiscal year has commenced since the issuance of the board order to	9729
submit to a final offer settlement procedure, the awarded	9730
increases may be retroactive to the commencement of the new fiscal	9731
year. The parties may, at any time, amend or modify a	9732
conciliator's award or order by mutual agreement.	9733

(12) The parties shall bear equally the cost of the final	9734
offer settlement procedure.	9735

(13) Conciliators appointed pursuant to this section shall	9736
be residents of the state.	9737

(H) All final offer settlement awards and orders of the	9738
conciliator made pursuant to Chapter 4117. of the Revised Code are	9739
subject to review by the court of common pleas having jurisdiction	9740
over the public employer as provided in Chapter 2711. of the	9741
Revised Code. If the public employer is located in more than one	9742
court of common pleas district, the court of common pleas in which	9743
the principal office of the chief executive is located has	9744
jurisdiction.	9745

(I) The issuance of a final offer settlement award	9746
constitutes a binding mandate to the public employer and the	9747
exclusive representative to take whatever actions are necessary to	9748
implement the award.	9749

Sec. 4123.01.  As used in this chapter:

9750

(A)(1) "Employee" means:

9751

(a) Every person in the service of the state, or of any	9752
county, municipal corporation, township, or school district	9753
therein, including regular members of lawfully constituted police	9754
and fire departments of municipal corporations and townships,	9755
whether paid or volunteer, and wherever serving within the state	9756
or on temporary assignment outside thereof, and executive officers	9757
of boards of education, under any appointment or contract of hire,	9758
express or implied, oral or written, including any elected	9759
official of the state, or of any county, municipal corporation, or	9760
township, or members of boards of education.	9761

As used in division (A)(1)(a) of this section, the term	9762
"regular members of lawfully constituted police and fire	9763
departments" includes the following persons when the person	9764
responds to an inherently dangerous situation that calls for an	9765
immediate response on the part of the person, regardless of	9766
whether the person is within the limits of the jurisdiction of the	9767
person's regular employment or voluntary service when responding,	9768
on the condition that the person responds to the situation as the	9769
person otherwise would if the person were on duty in the person's	9770
jurisdiction:	9771

(i) Off-duty peace officers. As used in division	9772
(A)(1)(a)(i) of this section, "peace officer" means a member of	9773
the organized police department of any municipal corporation,	9774
including a member of the organized police department of a	9775
municipal corporation in an adjoining state serving in Ohio under	9776
a contract pursuant to section 737.04 of the Revised Code, member	9777
of a police force employed by a metropolitan housing authority	9778
under division (D) of section 3735.31 of the Revised Code, member	9779
of a police force employed by a regional transit authority under	9780
division (Y) of section 306.05 of the Revised Code, state	9781
university law enforcement officer appointed under section 3345.04	9782
of the Revised Code, Ohio veterans' home police officer appointed	9783
under section 5907.02 of the Revised Code, police constable of any	9784
township, police officer of a township or joint township police	9785
district, state highway patrol trooper, and member of a qualified	9786
nonprofit corporation police department established pursuant to	9787
section 1702.80 of the Revised Code.	9788

As used in division (A)(1)(a) of this section with respect to	9789
off-duty peace officers, "jurisdiction" means the limits of the	9790
municipal corporation, township, metropolitan housing authority	9791
housing project, regional transit authority facilities or areas of	9792
a municipal corporation that have been agreed to by a regional	9793
transit authority and a municipal corporation located within its	9794
territorial jurisdiction, college, university, or Ohio veterans'	9795
home operated under Chapter 5907. of the Revised Code in which the	9796
peace officer is appointed, employed, or elected.	9797

(ii) Off-duty firefighters, whether paid or volunteer, of a	9798
lawfully constituted fire department. As used in division	9799
(A)(1)(a) of this section with respect to off-duty firefighters,	9800
"jurisdiction" means the limits of the political subdivision,	9801
joint ambulance district, fire district, or joint fire district in	9802
which the firefighter is appointed or employed.	9803

(iii) Off-duty first responders, emergency medical	9804
technicians-basic, emergency medical technicians-intermediate, or	9805
emergency medical technicians-paramedic, whether paid or	9806
volunteer, of an ambulance service organization or emergency	9807
medical service organization pursuant to Chapter 4765. of the	9808
Revised Code. As used in division (A)(1)(a) of this section with	9809
respect to off-duty first responders and emergency medical	9810
technicians, "jurisdiction" means the limits of the political	9811
subdivision or joint ambulance district in which the first	9812
responder or emergency medical technician is employed or	9813
volunteers as a first responder or emergency medical technician.	9814

(b) Every person in the service of any person, firm, or	9815
private corporation, including any public service corporation,	9816
that (i) employs one or more persons regularly in the same	9817
business or in or about the same establishment under any contract	9818
of hire, express or implied, oral or written, including aliens and	9819
minors, household workers who earn one hundred sixty dollars or	9820
more in cash in any calendar quarter from a single household and	9821
casual workers who earn one hundred sixty dollars or more in cash	9822
in any calendar quarter from a single employer, or (ii) is bound	9823
by any such contract of hire or by any other written contract, to	9824
pay into the state insurance fund the premiums provided by this	9825
chapter.	9826

(c) Every person who performs labor or provides services	9827
pursuant to a construction contract, as defined in section 4123.79	9828
of the Revised Code, if at least ten of the following criteria	9829
apply:	9830

(i) The person is required to comply with instructions from	9831
the other contracting party regarding the manner or method of	9832
performing services;	9833

(ii) The person is required by the other contracting party	9834
to have particular training;	9835

(iii) The person's services are integrated into the regular	9836
functioning of the other contracting party;	9837

(iv) The person is required to perform the work personally;

9838

(v) The person is hired, supervised, or paid by the other	9839
contracting party;	9840

(vi) A continuing relationship exists between the person and	9841
the other contracting party that contemplates continuing or	9842
recurring work even if the work is not full time;	9843

(vii) The person's hours of work are established by the	9844
other contracting party;	9845

(viii) The person is required to devote full time to the	9846
business of the other contracting party;	9847

(ix) The person is required to perform the work on the	9848
premises of the other contracting party;	9849

(x) The person is required to follow the order of work set	9850
by the other contracting party;	9851

(xi) The person is required to make oral or written reports	9852
of progress to the other contracting party;	9853

(xii) The person is paid for services on a regular basis	9854
such as hourly, weekly, or monthly;	9855

(xiii) The person's expenses are paid for by the other	9856
contracting party;	9857

(xiv) The person's tools and materials are furnished by the	9858
other contracting party;	9859

(xv) The person is provided with the facilities used to	9860
perform services;	9861

(xvi) The person does not realize a profit or suffer a loss	9862
as a result of the services provided;	9863

(xvii) The person is not performing services for a number of	9864
employers at the same time;	9865

(xviii) The person does not make the same services available	9866
to the general public;	9867

(xix) The other contracting party has a right to discharge	9868
the person;	9869

(xx) The person has the right to end the relationship with	9870
the other contracting party without incurring liability pursuant	9871
to an employment contract or agreement.	9872

Every person in the service of any independent contractor or	9873
subcontractor who has failed to pay into the state insurance fund	9874
the amount of premium determined and fixed by the administrator of	9875
workers' compensation for the person's employment or occupation or	9876
if a self-insuring employer has failed to pay compensation and	9877
benefits directly to the employer's injured and to the dependents	9878
of the employer's killed employees as required by section 4123.35	9879
of the Revised Code, shall be considered as the employee of the	9880
person who has entered into a contract, whether written or verbal,	9881
with such independent contractor unless such employees or their	9882
legal representatives or beneficiaries elect, after injury or	9883
death, to regard such independent contractor as the employer.	9884

(2) "Employee" does not mean:

9885

(a) A duly ordained, commissioned, or licensed minister or	9886
assistant or associate minister of a church in the exercise of	9887
ministry; or	9888

(b) Any officer of a family farm corporation.

9889

Any employer may elect to include as an "employee" within	9890
this chapter, any person excluded from the definition of	9891
"employee" pursuant to division (A)(2) of this section. If an	9892
employer is a partnership, sole proprietorship, or family farm	9893
corporation, such employer may elect to include as an "employee"	9894
within this chapter, any member of such partnership, the owner of	9895
the sole proprietorship, or the officers of the family farm	9896
corporation. In the event of an election, the employer shall	9897
serve upon the bureau of workers' compensation written notice	9898
naming the persons to be covered, include such employee's	9899
remuneration for premium purposes in all future payroll reports,	9900
and no person excluded from the definition of "employee" pursuant	9901
to division (A)(2) of this section, proprietor, or partner shall	9902
be deemed an employee within this division until the employer has	9903
served such notice.	9904

For informational purposes only, the bureau shall prescribe	9905
such language as it considers appropriate, on such of its forms as	9906
it considers appropriate, to advise employers of their right to	9907
elect to include as an "employee" within this chapter a sole	9908
proprietor, any member of a partnership, the officers of a family	9909
farm corporation, or a person excluded from the definition of	9910
"employee" under division (A)(2)(a) of this section, that they	9911
should check any health and disability insurance policy, or other	9912
form of health and disability plan or contract, presently covering	9913
them, or the purchase of which they may be considering, to	9914
determine whether such policy, plan, or contract excludes benefits	9915
for illness or injury that they might have elected to have covered	9916
by workers' compensation.	9917

(B) "Employer" means:

9918

(1) The state, including state hospitals, each county,	9919
municipal corporation, township, school district, and hospital	9920
owned by a political subdivision or subdivisions other than the	9921
state;	9922

(2) Every person, firm, and private corporation, including	9923
any public service corporation, that (a) has in service one or	9924
more employees regularly in the same business or in or about the	9925
same establishment under any contract of hire, express or implied,	9926
oral or written, or (b) is bound by any such contract of hire or	9927
by any other written contract, to pay into the insurance fund the	9928
premiums provided by this chapter.	9929

All such employers are subject to this chapter. Any member	9930
of a firm or association, who regularly performs manual labor in	9931
or about a mine, factory, or other establishment, including a	9932
household establishment, shall be considered an employee in	9933
determining whether such person, firm, or private corporation, or	9934
public service corporation, has in its service, one or more	9935
employees and the employer shall report the income derived from	9936
such labor to the bureau as part of the payroll of such employer,	9937
and such member shall thereupon be entitled to all the benefits of	9938
an employee.	9939

(C) "Injury" includes any injury, whether caused by external	9940
accidental means or accidental in character and result, received	9941
in the course of, and arising out of, the injured employee's	9942
employment. "Injury" does not include:	9943

(1) Psychiatric conditions except where the conditions have	9944
arisen from an injury or occupational disease;	9945

(2) Injury or disability caused primarily by the natural	9946
deterioration of tissue, an organ, or part of the body;	9947

(3) Injury or disability incurred in voluntary participation	9948
in an employer-sponsored recreation or fitness activity if the	9949
employee signs a waiver of the employee's right to compensation or	9950
benefits under this chapter prior to engaging in the recreation or	9951
fitness activity.	9952

(D) "Child" includes a posthumous child and a child legally	9953
adopted prior to the injury.	9954

(E) "Family farm corporation" means a corporation founded	9955
for the purpose of farming agricultural land in which the majority	9956
of the voting stock is held by and the majority of the	9957
stockholders are persons or the spouse of persons related to each	9958
other within the fourth degree of kinship, according to the rules	9959
of the civil law, and at least one of the related persons is	9960
residing on or actively operating the farm, and none of whose	9961
stockholders are a corporation. A family farm corporation does	9962
not cease to qualify under this division where, by reason of any	9963
devise, bequest, or the operation of the laws of descent or	9964
distribution, the ownership of shares of voting stock is	9965
transferred to another person, as long as that person is within	9966
the degree of kinship stipulated in this division.	9967

(F) "Occupational disease" means a disease contracted in the	9968
course of employment, which by its causes and the characteristics	9969
of its manifestation or the condition of the employment results in	9970
a hazard which distinguishes the employment in character from	9971
employment generally, and the employment creates a risk of	9972
contracting the disease in greater degree and in a different	9973
manner from the public in general.	9974

(G) "Self-insuring employer" means an employer who is	9975
granted the privilege of paying compensation and benefits directly	9976
under section 4123.35 of the Revised Code, including a board of	9977
county commissioners for the sole purpose of constructing a sports	9978
facility as defined in section 307.696 of the Revised Code,	9979
provided that the electors of the county in which the sports	9980
facility is to be built have approved construction of a sports	9981
facility by ballot election no later than November 6, 1997.	9982

(H) "Public employer" means an employer as defined in	9983
division (B)(1) of this section.	9984

Sec. 4123.35.  (A) Except as provided in this section,	9985
every employer mentioned in division (B)(2) of section 4123.01 of	9986
the Revised Code, and every publicly owned utility shall pay	9987
semiannually in the months of January and July into the state	9988
insurance fund the amount of annual premium the administrator of	9989
workers' compensation fixes for the employment or occupation of	9990
the employer, the amount of which premium to be paid by each	9991
employer to be determined by the classifications, rules, and rates	9992
made and published by the administrator. The employer shall pay	9993
semiannually a further sum of money into the state insurance fund	9994
as may be ascertained to be due from the employer by applying the	9995
rules of the administrator, and a receipt or certificate	9996
certifying that payment has been made shall be mailed immediately	9997
to the employer by the bureau of workers' compensation. The	9998
receipt or certificate is prima-facie evidence of the payment of	9999
the premium.	10000

The bureau of workers' compensation shall verify with the	10001
secretary of state the existence of all corporations and	10002
organizations making application for workers' compensation	10003
coverage and shall require every such application to include the	10004
employer's federal identification number.	10005

An employer as defined in division (B)(2) of section 4123.01	10006
of the Revised Code who has contracted with a subcontractor is	10007
liable for the unpaid premium due from any subcontractor with	10008
respect to that part of the payroll of the subcontractor that is	10009
for work performed pursuant to the contract with the employer.	10010

Division (A) of this section providing for the payment of	10011
premiums semiannually does not apply to any employer who was a	10012
subscriber to the state insurance fund prior to January 1, 1914,	10013
or who may first become a subscriber to the fund in any month	10014
other than January or July. Instead, the semiannual premiums	10015
shall be paid by those employers from time to time upon the	10016
expiration of the respective periods for which payments into the	10017
fund have been made by them.	10018

The administrator shall adopt rules to permit employers to	10019
make periodic payments of the semiannual premium due under this	10020
division. The rules shall include provisions for the assessment	10021
of interest charges, where appropriate, and for the assessment of	10022
penalties when an employer fails to make timely premium payments.	10023
An employer who timely pays the amounts due under this division is	10024
entitled to all of the benefits and protections of this chapter.	10025
Upon receipt of payment, the bureau immediately shall mail a	10026
receipt or certificate to the employer certifying that payment has	10027
been made, which receipt is prima-facie evidence of payment.	10028
Workers' compensation coverage under this chapter continues	10029
uninterrupted upon timely receipt of payment under this division.	10030

Every public employer, except public employers that are	10031
self-insuring employers under this section, shall comply with	10032
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in	10033
regard to the contribution of moneys to the public insurance fund.	10034

(B) Employers who will abide by the rules of the	10035
administrator and who may be of sufficient financial ability to	10036
render certain the payment of compensation to injured employees or	10037
the dependents of killed employees, and the furnishing of medical,	10038
surgical, nursing, and hospital attention and services and	10039
medicines, and funeral expenses, equal to or greater than is	10040
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64	10041
to 4123.67 of the Revised Code, and who do not desire to insure	10042
the payment thereof or indemnify themselves against loss sustained	10043
by the direct payment thereof, upon a finding of such facts by the	10044
administrator, may be granted the privilege to pay individually	10045
compensation, and furnish medical, surgical, nursing, and hospital	10046
services and attention and funeral expenses directly to injured	10047
employees or the dependents of killed employees, thereby being	10048
granted status as a self-insuring employer. The administrator may	10049
charge employers who apply for the status as a self-insuring	10050
employer a reasonable application fee to cover the bureau's costs	10051
in connection with processing and making a determination with	10052
respect to an application.	10053

All employers granted such status as self-insuring employers	10054
shall demonstrate sufficient financial and administrative ability	10055
to assure that all obligations under this section are promptly	10056
met. The administrator shall deny the privilege where the	10057
employer is unable to demonstrate the employer's ability to	10058
promptly meet all the obligations imposed on the employer by this	10059
section.	10060

(1) The administrator shall consider, but is not limited to,	10061
the following factors, where applicable, in determining the	10062
employer's ability to meet all of the obligations imposed on the	10063
employer by this section:	10064

(a) The employer employs a minimum of five hundred employees	10065
in this state;	10066

(b) The employer has operated in this state for a minimum of	10067
two years, provided that an employer who has purchased, acquired,	10068
or otherwise succeeded to the operation of a business, or any part	10069
thereof, situated in this state that has operated for at least two	10070
years in this state, also shall qualify;	10071

(c) Where the employer previously contributed to the state	10072
insurance fund or is a successor employer as defined by bureau	10073
rules, the amount of the buyout, as defined by bureau rules;	10074

(d) The sufficiency of the employer's assets located in this	10075
state to insure the employer's solvency in paying compensation	10076
directly;	10077

(e) The financial records, documents, and data, certified by	10078
a certified public accountant, necessary to provide the employer's	10079
full financial disclosure. The records, documents, and data	10080
include, but are not limited to, balance sheets and profit and	10081
loss history for the current year and previous four years.	10082

(f) The employer's organizational plan for the	10083
administration of the workers' compensation law;	10084

(g) The employer's proposed plan to inform employees of the	10085
change from a state fund insurer to a self-insuring employer, the	10086
procedures the employer will follow as a self-insuring employer,	10087
and the employees' rights to compensation and benefits; and	10088

(h) The employer has either an account in a financial	10089
institution in this state, or if the employer maintains an account	10090
with a financial institution outside this state, ensures that	10091
workers' compensation checks are drawn from the same account as	10092
payroll checks or the employer clearly indicates that payment will	10093
be honored by a financial institution in this state.	10094

The administrator may waive the requirements of divisions	10095
(B)(1)(a) and (b) of this section and the requirement of division	10096
(B)(1)(e) of this section that the financial records, documents,	10097
and data be certified by a certified public accountant. The	10098
administrator shall adopt rules establishing the criteria that an	10099
employer shall meet in order for the administrator to waive the	10100
requirement of division (B)(1)(e) of this section. Such rules may	10101
require additional security of that employer pursuant to division	10102
(E) of section 4123.351 of the Revised Code.	10103

The administrator shall not grant the status of self-insuring	10104
employer to the state, except that the administrator may grant the	10105
status of self-insuring employer to a state institution of higher	10106
education, excluding its hospitals, that meets the requirements of	10107
division (B)(2) of this section.	10108

(2) When considering the application of a public employer,	10109
except for a board of county commissioners described in division	10110
(G) of section 4123.01 of the Revised Code, a board of a county	10111
hospital, or a publicly owned utility, the administrator shall	10112
verify that the public employer satisfies all of the following	10113
requirements as the requirements apply to that public employer:	10114

(a) For the two-year period preceding application under this	10115
section, the public employer has maintained an unvoted debt	10116
capacity equal to at least two times the amount of the current	10117
annual premium established by the administrator under this chapter	10118
for that public employer for the year immediately preceding the	10119
year in which the public employer makes application under this	10120
section.	10121

(b) For each of the two fiscal years preceding application	10122
under this section, the unreserved and undesignated year-end fund	10123
balance in the public employer's general fund is equal to at least	10124
five per cent of the public employer's general fund revenues for	10125
the fiscal year computed in accordance with generally accepted	10126
accounting principles.	10127

(c) For the five-year period preceding application under	10128
this section, the public employer, to the extent applicable, has	10129
complied fully with the continuing disclosure requirements	10130
established in rules adopted by the United States securities and	10131
exchange commission under 17 C.F.R. 240.15c 2-12.	10132

(d) For the five-year period preceding application under	10133
this section, the public employer has not had its local government	10134
fund distribution withheld on account of the public employer being	10135
indebted or otherwise obligated to the state.	10136

(e) For the five-year period preceding application under	10137
this section, the public employer has not been under a fiscal	10138
watch or fiscal emergency pursuant to section 118.023, 118.04, or	10139
3316.03 of the Revised Code.	10140

(f) For the public employer's fiscal year preceding	10141
application under this section, the public employer has obtained	10142
an annual financial audit as required under section 117.10 of the	10143
Revised Code, which has been released by the auditor of state	10144
within seven months after the end of the public employer's fiscal	10145
year.	10146

(g) On the date of application, the public employer holds a	10147
debt rating of Aa3 or higher according to Moody's investors	10148
service, inc., or a comparable rating by an independent rating	10149
agency similar to Moody's investors service, inc.	10150

(h) The public employer agrees to generate an annual	10151
accumulating book reserve in its financial statements reflecting	10152
an actuarially generated reserve adequate to pay projected claims	10153
under this chapter for the applicable period of time, as	10154
determined by the administrator.	10155

(i) For a public employer that is a hospital, the public	10156
employer shall submit audited financial statements showing the	10157
hospital's overall liquidity characteristics, and the	10158
administrator shall determine, on an individual basis, whether the	10159
public employer satisfies liquidity standards equivalent to the	10160
liquidity standards of other public employers.	10161

(j) Any additional criteria that the administrator adopts by	10162
rule pursuant to division (E) of this section.	10163

The administrator shall not approve the application of a	10164
public employer, except for a board of county commissioners	10165
described in division (G) of section 4123.01 of the Revised Code,	10166
a board of a county hospital, or publicly owned utility, who does	10167
not satisfy all of the requirements listed in division (B)(2) of	10168
this section.	10169

(C) A board of county commissioners described in division	10170
(G) of section 4123.01 of the Revised Code, as an employer, that	10171
will abide by the rules of the administrator and that may be of	10172
sufficient financial ability to render certain the payment of	10173
compensation to injured employees or the dependents of killed	10174
employees, and the furnishing of medical, surgical, nursing, and	10175
hospital attention and services and medicines, and funeral	10176
expenses, equal to or greater than is provided for in sections	10177
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised	10178
Code, and that does not desire to insure the payment thereof or	10179
indemnify itself against loss sustained by the direct payment	10180
thereof, upon a finding of such facts by the administrator, may be	10181
granted the privilege to pay individually compensation, and	10182
furnish medical, surgical, nursing, and hospital services and	10183
attention and funeral expenses directly to injured employees or	10184
the dependents of killed employees, thereby being granted status	10185
as a self-insuring employer. The administrator may charge a board	10186
of county commissioners described in division (G) of section	10187
4123.01 of the Revised Code that applies for the status as a	10188
self-insuring employer a reasonable application fee to cover the	10189
bureau's costs in connection with processing and making a	10190
determination with respect to an application. All employers	10191
granted such status shall demonstrate sufficient financial and	10192
administrative ability to assure that all obligations under this	10193
section are promptly met. The administrator shall deny the	10194
privilege where the employer is unable to demonstrate the	10195
employer's ability to promptly meet all the obligations imposed on	10196
the employer by this section. The administrator shall consider,	10197
but is not limited to, the following factors, where applicable, in	10198
determining the employer's ability to meet all of the obligations	10199
imposed on the board as an employer by this section:	10200

(1) The board as an employer employs a minimum of five	10201
hundred employees in this state;	10202

(2) The board has operated in this state for a minimum of	10203
two years;	10204

(3) Where the board previously contributed to the state	10205
insurance fund or is a successor employer as defined by bureau	10206
rules, the amount of the buyout, as defined by bureau rules;	10207

(4) The sufficiency of the board's assets located in this	10208
state to insure the board's solvency in paying compensation	10209
directly;	10210

(5) The financial records, documents, and data, certified by	10211
a certified public accountant, necessary to provide the board's	10212
full financial disclosure. The records, documents, and data	10213
include, but are not limited to, balance sheets and profit and	10214
loss history for the current year and previous four years.	10215

(6) The board's organizational plan for the administration	10216
of the workers' compensation law;	10217

(7) The board's proposed plan to inform employees of the	10218
proposed self-insurance, the procedures the board will follow as a	10219
self-insuring employer, and the employees' rights to compensation	10220
and benefits;	10221

(8) The board has either an account in a financial	10222
institution in this state, or if the board maintains an account	10223
with a financial institution outside this state, ensures that	10224
workers' compensation checks are drawn from the same account as	10225
payroll checks or the board clearly indicates that payment will be	10226
honored by a financial institution in this state;	10227

(9) The board shall provide the administrator a surety bond	10228
in an amount equal to one hundred twenty-five per cent of the	10229
projected losses as determined by the administrator.	10230

(D) The administrator shall require a surety bond from all	10231
self-insuring employers, issued pursuant to section 4123.351 of	10232
the Revised Code, that is sufficient to compel, or secure to	10233
injured employees, or to the dependents of employees killed, the	10234
payment of compensation and expenses, which shall in no event be	10235
less than that paid or furnished out of the state insurance fund	10236
in similar cases to injured employees or to dependents of killed	10237
employees whose employers contribute to the fund, except when an	10238
employee of the employer, who has suffered the loss of a hand,	10239
arm, foot, leg, or eye prior to the injury for which compensation	10240
is to be paid, and thereafter suffers the loss of any other of the	10241
members as the result of any injury sustained in the course of and	10242
arising out of the employee's employment, the compensation to be	10243
paid by the self-insuring employer is limited to the disability	10244
suffered in the subsequent injury, additional compensation, if	10245
any, to be paid by the bureau out of the surplus created by	10246
section 4123.34 of the Revised Code.	10247

(E) In addition to the requirements of this section, the	10248
administrator shall make and publish rules governing the manner of	10249
making application and the nature and extent of the proof required	10250
to justify a finding of fact by the administrator as to granting	10251
the status of a self-insuring employer, which rules shall be	10252
general in their application, one of which rules shall provide	10253
that all self-insuring employers shall pay into the state	10254
insurance fund such amounts as are required to be credited to the	10255
surplus fund in division (B) of section 4123.34 of the Revised	10256
Code. The administrator may adopt rules establishing requirements	10257
in addition to the requirements described in division (B)(2) of	10258
this section that a public employer shall meet in order to qualify	10259
for self-insuring status.	10260

Employers shall secure directly from the bureau central	10261
offices application forms upon which the bureau shall stamp a	10262
designating number. Prior to submission of an application, an	10263
employer shall make available to the bureau, and the bureau shall	10264
review, the information described in division (B)(1) of this	10265
section, and public employers shall make available, and the bureau	10266
shall review, the information necessary to verify whether the	10267
public employer meets the requirements listed in division (B)(2)	10268
of this section. An employer shall file the completed application	10269
forms with an application fee, which shall cover the costs of	10270
processing the application, as established by the administrator,	10271
by rule, with the bureau at least ninety days prior to the	10272
effective date of the employer's new status as a self-insuring	10273
employer. The application form is not deemed complete until all	10274
the required information is attached thereto. The bureau shall	10275
only accept applications that contain the required information.	10276

(F) The bureau shall review completed applications within a	10277
reasonable time. If the bureau determines to grant an employer	10278
the status as a self-insuring employer, the bureau shall issue a	10279
statement, containing its findings of fact, that is prepared by	10280
the bureau and signed by the administrator. If the bureau	10281
determines not to grant the status as a self-insuring employer,	10282
the bureau shall notify the employer of the determination and	10283
require the employer to continue to pay its full premium into the	10284
state insurance fund. The administrator also shall adopt rules	10285
establishing a minimum level of performance as a criterion for	10286
granting and maintaining the status as a self-insuring employer	10287
and fixing time limits beyond which failure of the self-insuring	10288
employer to provide for the necessary medical examinations and	10289
evaluations may not delay a decision on a claim.	10290

(G) The administrator shall adopt rules setting forth	10291
procedures for auditing the program of self-insuring employers.	10292
The bureau shall conduct the audit upon a random basis or whenever	10293
the bureau has grounds for believing that a self-insuring employer	10294
is not in full compliance with bureau rules or this chapter.	10295

The administrator shall monitor the programs conducted by	10296
self-insuring employers, to ensure compliance with bureau	10297
requirements and for that purpose, shall develop and issue to	10298
self-insuring employers standardized forms for use by the	10299
self-insuring employer in all aspects of the self-insuring	10300
employers' direct compensation program and for reporting of	10301
information to the bureau.	10302

The bureau shall receive and transmit to the self-insuring	10303
employer all complaints concerning any self-insuring employer. In	10304
the case of a complaint against a self-insuring employer, the	10305
administrator shall handle the complaint through the	10306
self-insurance division of the bureau. The bureau shall maintain	10307
a file by employer of all complaints received that relate to the	10308
employer. The bureau shall evaluate each complaint and take	10309
appropriate action.	10310

The administrator shall adopt as a rule a prohibition against	10311
any self-insuring employer from harassing, dismissing, or	10312
otherwise disciplining any employee making a complaint, which rule	10313
shall provide for a financial penalty to be levied by the	10314
administrator payable by the offending self-insuring employer.	10315

(H) For the purpose of making determinations as to whether	10316
to grant status as a self-insuring employer, the administrator may	10317
subscribe to and pay for a credit reporting service that offers	10318
financial and other business information about individual	10319
employers. The costs in connection with the bureau's subscription	10320
or individual reports from the service about an applicant may be	10321
included in the application fee charged employers under this	10322
section.	10323

(I) The administrator, notwithstanding other provisions of	10324
this chapter, may permit a self-insuring employer to resume	10325
payment of premiums to the state insurance fund with appropriate	10326
credit modifications to the employer's basic premium rate as such	10327
rate is determined pursuant to section 4123.29 of the Revised	10328
Code.	10329

(J) On the first day of July of each year, the administrator	10330
shall calculate separately each self-insuring employer's	10331
assessments for the safety and hygiene fund, administrative costs	10332
pursuant to section 4123.342 of the Revised Code, and for the	10333
portion of the surplus fund under division (B) of section 4123.34	10334
of the Revised Code that is not used for handicapped	10335
reimbursement, on the basis of the paid compensation attributable	10336
to the individual self-insuring employer according to the	10337
following calculation:	10338

(1) The total assessment against all self-insuring employers	10339
as a class for each fund and for the administrative costs for the	10340
year that the assessment is being made, as determined by the	10341
administrator, divided by the total amount of paid compensation	10342
for the previous calendar year attributable to all amenable	10343
self-insuring employers;	10344

(2) Multiply the quotient in division (J)(1) of this section	10345
by the total amount of paid compensation for the previous calendar	10346
year that is attributable to the individual self-insuring employer	10347
for whom the assessment is being determined. Each self-insuring	10348
employer shall pay the assessment that results from this	10349
calculation, unless the assessment resulting from this calculation	10350
falls below a minimum assessment, which minimum assessment the	10351
administrator shall determine on the first day of July of each	10352
year with the advice and consent of the workers' compensation	10353
oversight commission, in which event, the self-insuring employer	10354
shall pay the minimum assessment.	10355

In determining the total amount due for the total assessment	10356
against all self-insuring employers as a class for each fund and	10357
the administrative assessment, the administrator shall reduce	10358
proportionately the total for each fund and assessment by the	10359
amount of money in the self-insurance assessment fund as of the	10360
date of the computation of the assessment.	10361

The administrator shall calculate the assessment for the	10362
portion of the surplus fund under division (B) of section 4123.34	10363
of the Revised Code that is used for handicapped reimbursement in	10364
the same manner as set forth in divisions (J)(1) and (2) of this	10365
section except that the administrator shall calculate the total	10366
assessment for this portion of the surplus fund only on the basis	10367
of those self-insuring employers that retain participation in the	10368
handicapped reimbursement program and the individual self-insuring	10369
employer's proportion of paid compensation shall be calculated	10370
only for those self-insuring employers who retain participation in	10371
the handicapped reimbursement program. The administrator, as the	10372
administrator determines appropriate, may determine the total	10373
assessment for the handicapped portion of the surplus fund in	10374
accordance with sound actuarial principles.	10375

The administrator shall calculate the assessment for the	10376
portion of the surplus fund under division (B) of section 4123.34	10377
of the Revised Code that under division (D) of section 4121.66 of	10378
the Revised Code is used for rehabilitation costs in the same	10379
manner as set forth in divisions (J)(1) and (2) of this section,	10380
except that the administrator shall calculate the total assessment	10381
for this portion of the surplus fund only on the basis of those	10382
self-insuring employers who have not made the election to make	10383
payments directly under division (D) of section 4121.66 of the	10384
Revised Code and an individual self-insuring employer's proportion	10385
of paid compensation only for those self-insuring employers who	10386
have not made that election.	10387

An employer who no longer is a self-insuring employer in this	10388
state or who no longer is operating in this state, shall continue	10389
to pay assessments for administrative costs and for the portion of	10390
the surplus fund under division (B) of section 4123.34 of the	10391
Revised Code that is not used for handicapped reimbursement, based	10392
upon paid compensation attributable to claims that occurred while	10393
the employer was a self-insuring employer within this state.	10394

(K) There is hereby created in the state treasury the	10395
self-insurance assessment fund. All investment earnings of the	10396
fund shall be deposited in the fund. The administrator shall use	10397
the money in the self-insurance assessment fund only for	10398
administrative costs as specified in section 4123.341 of the	10399
Revised Code.	10400

(L) Every self-insuring employer shall certify, in affidavit	10401
form subject to the penalty for perjury, to the bureau the amount	10402
of the self-insuring employer's paid compensation for the previous	10403
calendar year. In reporting paid compensation paid for the	10404
previous year, a self-insuring employer shall exclude from the	10405
total amount of paid compensation any reimbursement the	10406
self-insuring employer receives in the previous calendar year from	10407
the surplus fund pursuant to section 4123.512 of the Revised Code	10408
for any paid compensation. The self-insuring employer also shall	10409
exclude from the paid compensation reported any amount recovered	10410
under section 4123.93 of the Revised Code and any amount that is	10411
determined not to have been payable to or on behalf of a claimant	10412
in any final administrative or judicial proceeding. The	10413
self-insuring employer shall exclude such amounts from the paid	10414
compensation reported in the reporting period subsequent to the	10415
date the determination is made. The administrator shall adopt	10416
rules, in accordance with Chapter 119. of the Revised Code,	10417
establishing the date by which self-insuring employers must submit	10418
such information and the amount of the assessments provided for in	10419
division (J) of this section for employers who have been granted	10420
self-insuring status within the last calendar year.	10421

The administrator shall include any assessment that remains	10422
unpaid for previous assessment periods in the calculation and	10423
collection of any assessments due under this division or division	10424
(J) of this section.	10425

(M) As used in this section, "paid compensation" means all	10426
amounts paid by a self-insuring employer for living maintenance	10427
benefits, all amounts for compensation paid pursuant to sections	10428
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and	10429
4123.64 of the Revised Code, all amounts paid as wages in lieu of	10430
such compensation, all amounts paid in lieu of such compensation	10431
under a nonoccupational accident and sickness program fully funded	10432
by the self-insuring employer, and all amounts paid by a	10433
self-insuring employer for a violation of a specific safety	10434
standard pursuant to Section 35 of Article II, Ohio Constitution	10435
and section 4121.47 of the Revised Code.	10436

(N) Should any section of this chapter or Chapter 4121. of	10437
the Revised Code providing for self-insuring employers'	10438
assessments based upon compensation paid be declared	10439
unconstitutional by a final decision of any court, then that	10440
section of the Revised Code declared unconstitutional shall revert	10441
back to the section in existence prior to November 3, 1989,	10442
providing for assessments based upon payroll.	10443

(O) The administrator may grant a self-insuring employer the	10444
privilege to self-insure a construction project entered into by	10445
the self-insuring employer that is scheduled for completion within	10446
six years after the date the project begins, and the total cost of	10447
which is estimated to exceed one hundred million dollars or, for	10448
employers described in division (R) of this section, if the	10449
construction project is estimated to exceed twenty-five million	10450
dollars. The administrator may waive such cost and time criteria	10451
and grant a self-insuring employer the privilege to self-insure a	10452
construction project regardless of the time needed to complete the	10453
construction project and provided that the cost of the	10454
construction project is estimated to exceed fifty million dollars.	10455
A self-insuring employer who desires to self-insure a construction	10456
project shall submit to the administrator an application listing	10457
the dates the construction project is scheduled to begin and end,	10458
the estimated cost of the construction project, the contractors	10459
and subcontractors whose employees are to be self-insured by the	10460
self-insuring employer, the provisions of a safety program that is	10461
specifically designed for the construction project, and a	10462
statement as to whether a collective bargaining agreement	10463
governing the rights, duties, and obligations of each of the	10464
parties to the agreement with respect to the construction project	10465
exists between the self-insuring employer and a labor	10466
organization.	10467

A self-insuring employer may apply to self-insure the	10468
employees of either of the following:	10469

(1) All contractors and subcontractors who perform labor or	10470
work or provide materials for the construction project;	10471

(2) All contractors and, at the administrator's discretion,	10472
a substantial number of all the subcontractors who perform labor	10473
or work or provide materials for the construction project.	10474

Upon approval of the application, the administrator shall	10475
mail a certificate granting the privilege to self-insure the	10476
construction project to the self-insuring employer. The	10477
certificate shall contain the name of the self-insuring employer	10478
and the name, address, and telephone number of the self-insuring	10479
employer's representatives who are responsible for administering	10480
workers' compensation claims for the construction project. The	10481
self-insuring employer shall post the certificate in a conspicuous	10482
place at the site of the construction project.	10483

The administrator shall maintain a record of the contractors	10484
and subcontractors whose employees are covered under the	10485
certificate issued to the self-insured employer. A self-insuring	10486
employer immediately shall notify the administrator when any	10487
contractor or subcontractor is added or eliminated from inclusion	10488
under the certificate.	10489

Upon approval of the application, the self-insuring employer	10490
is responsible for the administration and payment of all claims	10491
under this chapter and Chapter 4121. of the Revised Code for the	10492
employees of the contractor and subcontractors covered under the	10493
certificate who receive injuries or are killed in the course of	10494
and arising out of employment on the construction project, or who	10495
contract an occupational disease in the course of employment on	10496
the construction project. For purposes of this chapter and	10497
Chapter 4121. of the Revised Code, a claim that is administered	10498
and paid in accordance with this division is considered a claim	10499
against the self-insuring employer listed in the certificate. A	10500
contractor or subcontractor included under the certificate shall	10501
report to the self-insuring employer listed in the certificate,	10502
all claims that arise under this chapter and Chapter 4121. of the	10503
Revised Code in connection with the construction project for which	10504
the certificate is issued.	10505

A self-insuring employer who complies with this division is	10506
entitled to the protections provided under this chapter and	10507
Chapter 4121. of the Revised Code with respect to the employees of	10508
the contractors and subcontractors covered under a certificate	10509
issued under this division for death or injuries that arise out	10510
of, or death, injuries, or occupational diseases that arise in the	10511
course of, those employees' employment on that construction	10512
project, as if the employees were employees of the self-insuring	10513
employer, provided that the self-insuring employer also complies	10514
with this section. No employee of the contractors and	10515
subcontractors covered under a certificate issued under this	10516
division shall be considered the employee of the self-insuring	10517
employer listed in that certificate for any purposes other than	10518
this chapter and Chapter 4121. of the Revised Code. Nothing in	10519
this division gives a self-insuring employer authority to control	10520
the means, manner, or method of employment of the employees of the	10521
contractors and subcontractors covered under a certificate issued	10522
under this division.	10523

The contractors and subcontractors included under a	10524
certificate issued under this division are entitled to the	10525
protections provided under this chapter and Chapter 4121. of the	10526
Revised Code with respect to the contractor's or subcontractor's	10527
employees who are employed on the construction project which is	10528
the subject of the certificate, for death or injuries that arise	10529
out of, or death, injuries, or occupational diseases that arise in	10530
the course of, those employees' employment on that construction	10531
project.	10532

The contractors and subcontractors included under a	10533
certificate issued under this division shall identify in their	10534
payroll records the employees who are considered the employees of	10535
the self-insuring employer listed in that certificate for purposes	10536
of this chapter and Chapter 4121. of the Revised Code, and the	10537
amount that those employees earned for employment on the	10538
construction project that is the subject of that certificate.	10539
Notwithstanding any provision to the contrary under this chapter	10540
and Chapter 4121. of the Revised Code, the administrator shall	10541
exclude the payroll that is reported for employees who are	10542
considered the employees of the self-insuring employer listed in	10543
that certificate, and that the employees earned for employment on	10544
the construction project that is the subject of that certificate,	10545
when determining those contractors' or subcontractors' premiums or	10546
assessments required under this chapter and Chapter 4121. of the	10547
Revised Code. A self-insuring employer issued a certificate under	10548
this division shall include in the amount of paid compensation it	10549
reports pursuant to division (L) of this section, the amount of	10550
paid compensation the self-insuring employer paid pursuant to this	10551
division for the previous calendar year.	10552

Nothing in this division shall be construed as altering the	10553
rights of employees under this chapter and Chapter 4121. of the	10554
Revised Code as those rights existed prior to September 17, 1996.	10555
Nothing in this division shall be construed as altering the rights	10556
devolved under sections 2305.31 and 4123.82 of the Revised Code as	10557
those rights existed prior to September 17, 1996.	10558

As used in this division, "privilege to self-insure a	10559
construction project" means privilege to pay individually	10560
compensation, and to furnish medical, surgical, nursing, and	10561
hospital services and attention and funeral expenses directly to	10562
injured employees or the dependents of killed employees.	10563

(P) A self-insuring employer whose application is granted	10564
under division (O) of this section shall designate a safety	10565
professional to be responsible for the administration and	10566
enforcement of the safety program that is specifically designed	10567
for the construction project that is the subject of the	10568
application.	10569

A self-insuring employer whose application is granted under	10570
division (O) of this section shall employ an ombudsperson for the	10571
construction project that is the subject of the application. The	10572
ombudsperson shall have experience in workers' compensation or the	10573
construction industry, or both. The ombudsperson shall perform	10574
all of the following duties:	10575

(1) Communicate with and provide information to employees	10576
who are injured in the course of, or whose injury arises out of	10577
employment on the construction project, or who contract an	10578
occupational disease in the course of employment on the	10579
construction project;	10580

(2) Investigate the status of a claim upon the request of an	10581
employee to do so;	10582

(3) Provide information to claimants, third party	10583
administrators, employers, and other persons to assist those	10584
persons in protecting their rights under this chapter and Chapter	10585
4121. of the Revised Code.	10586

A self-insuring employer whose application is granted under	10587
division (O) of this section shall post the name of the safety	10588
professional and the ombudsperson and instructions for contacting	10589
the safety professional and the ombudsperson in a conspicuous	10590
place at the site of the construction project.	10591

(Q) The administrator may consider all of the following when	10592
deciding whether to grant a self-insuring employer the privilege	10593
to self-insure a construction project as provided under division	10594
(O) of this section:	10595

(1) Whether the self-insuring employer has an organizational	10596
plan for the administration of the workers' compensation law;	10597

(2) Whether the safety program that is specifically designed	10598
for the construction project provides for the safety of employees	10599
employed on the construction project, is applicable to all	10600
contractors and subcontractors who perform labor or work or	10601
provide materials for the construction project, and has as a	10602
component, a safety training program that complies with standards	10603
adopted pursuant to the "Occupational Safety and Health Act of	10604
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing	10605
management and employee involvement;	10606

(3) Whether granting the privilege to self-insure the	10607
construction project will reduce the costs of the construction	10608
project;	10609

(4) Whether the self-insuring employer has employed an	10610
ombudsperson as required under division (P) of this section;	10611

(5) Whether the self-insuring employer has sufficient surety	10612
to secure the payment of claims for which the self-insuring	10613
employer would be responsible pursuant to the granting of the	10614
privilege to self-insure a construction project under division (O)	10615
of this section.	10616

(R) As used in divisions (O), (P), and (Q), "self-insuring	10617
employer" includes the following employers, whether or not they	10618
have been granted the status of being a self-insuring employer	10619
under division (B) of this section:	10620

(1) A state institution of higher education;

10621

(2) A school district;

10622

(3) A county school financing district;

10623

(4) An educational service center;

10624

(5) A community school established under Chapter 3314. of	10625
the Revised Code.	10626

(S) As used in this section:

10627

(1) "Unvoted debt capacity" means the amount of money that a	10628
public employer may borrow without voter approval of a tax levy;	10629

(2) "State institution of higher education" means the state	10630
universities listed in section 3345.011 of the Revised Code,	10631
community colleges created pursuant to Chapter 3354. of the	10632
Revised Code, university branches created pursuant to Chapter	10633
3355. of the Revised Code, technical colleges created pursuant to	10634
Chapter 3357. of the Revised Code, and state community colleges	10635
created pursuant to Chapter 3358. of the Revised Code.	10636

Sec. 4582.03.  (A) A port authority created in accordance	10637
with section 4582.02 of the Revised Code shall be governed by a	10638
board of directors. Members of a board of directors of a port	10639
authority created by the exclusive action of a municipal	10640
corporation shall consist of the number of members it considers	10641
necessary and shall be appointed by the mayor with the advice and	10642
consent of the council. Members of a board of directors of a port	10643
authority created by the exclusive action of a township shall	10644
consist of such members as it considers necessary and shall be	10645
appointed by the township trustees of the township. Members of a	10646
board of directors of a port authority created by the exclusive	10647
action of a county shall consist of such members as it considers	10648
necessary and shall be appointed by the county commissioners of	10649
the county. Members of a board of directors of a port authority	10650
created by a combination of political subdivisions shall be	10651
divided among the political subdivisions in such proportions as	10652
the political subdivisions may agree and shall be appointed by the	10653
participating political subdivisions in the same manner as this	10654
section provides for the appointment of members by a political	10655
subdivision creating its own port authority. When a port	10656
authority is created by a combination of political subdivisions,	10657
the number of directors comprising the board shall be determined	10658
by agreement between the political subdivisions, which number from	10659
time to time may be changed by amendment of the agreement. The	10660
appointing body may at any time remove a director appointed by it	10661
for misfeasance, nonfeasance, or malfeasance in office.	10662

A majority of the directors shall have been qualified	10663
electors of, or shall have had their businesses or places of	10664
employment in, one or more political subdivisions within the area	10665
of the jurisdiction of the port authority, for a period of at	10666
least three years next preceding their appointment.	10667

The directors of any port authority first appointed shall	10668
serve staggered terms. Thereafter each successor shall serve for	10669
a term of four years, except that any person appointed to fill a	10670
vacancy shall be appointed to only the unexpired term and any	10671
director is eligible for reappointment.	10672

The board of directors by rule may provide for the removal of	10673
a director who fails to attend three consecutive regular meetings	10674
of the board. If a director is so removed, a successor shall be	10675
appointed for the remaining term of the removed director in the	10676
same manner provided for the original appointment.	10677

The directors shall elect one of their membership as	10678
chairperson and another as vice-chairperson and shall designate	10679
their terms of office, and shall appoint a secretary who need not	10680
be a director. A majority of the board of directors shall	10681
constitute a quorum, thefor purposes of holding a meeting of the	10682
board. The affirmative vote of whicha majority of a quorom shall	10683
be necessary for any action taken by the port authority unless the	10684
board of directors determines by rule to require a greater number	10685
of affirmative votes for particular actions to be taken by the	10686
port authority. No vacancy in the membership of the board shall	10687
impair the rights of a quorum to exercise all the rights and	10688
perform all the duties of the port authority.	10689

Each member of the board of directors of a port authority	10690
shall be entitled to receive from the port authority such sum of	10691
money as the board of directors may determine as compensation for	10692
services as director and reimbursement for reasonable expenses in	10693
the performance of official duties.	10694

(B) Except for civil actions that arise out of the operation	10695
of a motor vehicle and civil actions in which the port authority	10696
is the plaintiff, no director, officer, or employee of a port	10697
authority shall be liable in any civil action that arises under	10698
the law of this state for damage or injury caused in the	10699
performance of official duties, unless the director's, officer's,	10700
or employee's actions were manifestly outside the scope of the	10701
director's, officer's, or employee's employment or official	10702
responsibilities, or unless the director, officer, or employee	10703
acted with malicious purpose, in bad faith, or in a wanton or	10704
reckless manner.	10705

This section does not eliminate, limit, or reduce any	10706
immunity from civil liability that is conferred upon a director,	10707
officer, or employee by any other provision of the Revised Code or	10708
by case law.	10709

(C)(1) A port authority, except as provided in division (B)	10710
of this section, shall indemnify a director, officer, or employee	10711
from liability incurred in the performance of official duties by	10712
paying any judgment in, or amount negotiated in settlement of, any	10713
civil action arising under federal law, the law of another state,	10714
or the law of a foreign jurisdiction. The reasonableness of the	10715
amount of any consent judgment or settlement is subject to the	10716
review and approval of the board of directors of the port	10717
authority. The maximum aggregate amount of indemnification paid	10718
directly from funds to or on behalf of any director, officer, or	10719
employee pursuant to this division shall be one million dollars	10720
per occurrence, regardless of the number of persons who suffer	10721
damage, injury, or death as a result of the occurrence.	10722

(2) A port authority shall not indemnify a director,	10723
officer, or employee under any of the following circumstances:	10724

(a) To the extent the director, officer, or employee is	10725
covered by a policy of insurance for civil liability purchased by	10726
the port authority;	10727

(b) When the director, officer, or employee acts manifestly	10728
outside the scope of the director's, officer's, or employee's	10729
employment or official responsibilities, with malicious purpose,	10730
in bad faith, or in a wanton or reckless manner;	10731

(c) For any portion of a judgment that represents punitive	10732
or exemplary damages;	10733

(d) For any portion of a consent judgment or settlement that	10734
is unreasonable.	10735

(3) The port authority may purchase a policy or policies of	10736
insurance on behalf of directors, officers, and employees of the	10737
port authority from an insurer or insurers licensed to do business	10738
in this state providing coverage for damages in connection with	10739
any civil action, demand, or claim against the director, officer,	10740
or employee by reason of an act or omission by the director,	10741
officer, or employee occurring in the performance of official	10742
duties and not coming within the terms of division (C)(2)(b) of	10743
this section.	10744

(4) This section does not affect any of the following:

10745

(a) Any defense that would otherwise be available in an	10746
action alleging personal liability of a director, officer, or	10747
employee;	10748

(b) The operation of section 9.83 of the Revised Code.

10749

Sec. 4582.20.  A port authority shall be exempt from and	10750
shall not be required to pay any taxes on property, both real and	10751
personal, or any combination thereof, belonging to any port	10752
authority, that is used exclusively for any authorized purpose;	10753
provided, this. This exemption shall not apply to any property	10754
occupied and used during a tax year by a person who is a lessee of	10755
the property as of the tax lien date for that tax year under a	10756
written lease with a remaining term longer than one year. The	10757
immediately preceding sentence shall not apply to real or personal	10758
property, or any combination thereof, leased to a lessee, which	10759
property would be exempt from taxes under Chapter 5709. of the	10760
Revised Code if such property belonged to that lessee. Nothing in	10761
this section eliminates the lessor's or the lessee's obligation to	10762
comply with other provisions of the Revised Code to obtain an	10763
exemption for such property.	10764

Sec. 4582.27.  (A) A port authority created in accordance	10765
with section 4582.22 of the Revised Code shall be governed by a	10766
board of directors. Members of a board of directors of a port	10767
authority created by the exclusive action of a municipal	10768
corporation shall consist of the number of members it considers	10769
necessary and shall be appointed by the mayor with the advice and	10770
consent of the council. Members of a board of directors of a port	10771
authority created by the exclusive action of a township shall	10772
consist of such members as it considers necessary and shall be	10773
appointed by the township trustees of the township. Members of a	10774
board of directors of a port authority created by the exclusive	10775
action of a county shall consist of such members as it considers	10776
necessary and shall be appointed by the board of county	10777
commissioners of the county. Members of a board of directors of a	10778
port authority created by a combination of political subdivisions	10779
shall be divided among the political subdivisions in such	10780
proportions as the political subdivisions may agree and shall be	10781
appointed by the participating political subdivisions in the same	10782
manner as this section provides for the appointment of members by	10783
a political subdivision creating its own port authority. If a	10784
participating political subdivision is not authorized by section	10785
4582.22 of the Revised Code to create its own port authority, the	10786
political subdivision's elected legislative body, if the political	10787
subdivision has an elected legislative body, or the political	10788
subdivision's elected official or officials who appoint the	10789
legislative body of the political subdivision shall appoint the	10790
members of a board of directors of a port authority that are to be	10791
appointed by that political subdivision. If the electors of a	10792
participating political subdivision do not elect either the	10793
legislative body of the political subdivision or the official or	10794
officials who appoint the legislative body of the political	10795
subdivision, the participating political subdivision may not	10796
appoint any member of a board of directors of a port authority.	10797
When a port authority is created by a combination of political	10798
subdivisions, the number of directors comprising the board shall	10799
be determined by agreement between the political subdivisions,	10800
which number may be changed from time to time by amendment of the	10801
agreement. The appointing body may at any time remove a director	10802
appointed by it for misfeasance, nonfeasance, or malfeasance in	10803
office.	10804

A majority of the directors shall have been qualified	10805
electors of, or shall have had their businesses or places of	10806
employment in, one or more political subdivisions within the area	10807
of the jurisdiction of the port authority, for a period of at	10808
least three years next preceding their appointment.	10809

The directors of any port authority first appointed shall	10810
serve staggered terms. Thereafter each successor shall serve for	10811
a term of four years, except that any person appointed to fill a	10812
vacancy shall be appointed to only the unexpired term and any	10813
director is eligible for reappointment.	10814

The board of directors by rule may provide for the removal of	10815
a director who fails to attend three consecutive regular meetings	10816
of the board. If a director is so removed, a successor shall be	10817
appointed for the remaining term of the removed director in the	10818
same manner provided for the original appointment.	10819

The directors shall elect one of their membership as	10820
chairperson and another as vice-chairperson, and shall designate	10821
their terms of office, and shall appoint a secretary who need not	10822
be a director. A majority of the board of directors shall	10823
constitute a quorum, thefor purposes of holding a meeting of the	10824
board. The affirmative vote of whicha majority of a quorom shall	10825
be necessary for any action taken by the port authority unless the	10826
board of directors determines by rule to require a greater number	10827
of affirmative votes for particular actions to be taken by the	10828
port authority. No vacancy in the membership of the board shall	10829
impair the rights of a quorum to exercise all the rights and	10830
perform all the duties of the port authority.	10831

Each member of the board of directors of a port authority	10832
shall be entitled to receive from the port authority such sum of	10833
money as the board of directors may determine as compensation for	10834
services as director and reimbursement for reasonable expenses in	10835
the performance of official duties.	10836

(B) Except for civil actions that arise out of the operation	10837
of a motor vehicle and civil actions in which the port authority	10838
is the plaintiff, no director, officer, or employee of a port	10839
authority shall be liable in any civil action that arises under	10840
the law of this state for damage or injury caused in the	10841
performance of his duties, unless the director's, officer's, or	10842
employee's actions were manifestly outside the scope of his	10843
employment or official responsibilities, or unless the director,	10844
officer, or employee acted with malicious purpose, in bad faith,	10845
or in a wanton or reckless manner.	10846

This division does not eliminate, limit, or reduce any	10847
immunity from civil liability that is conferred upon a director,	10848
officer, or employee by any other provision of the Revised Code or	10849
by case law.	10850

(C)(1) A port authority shall, except as provided in	10851
division (B) of this section, indemnify a director, officer, or	10852
employee from liability incurred in the performance of his duties	10853
by paying any judgment in, or amount negotiated in settlement of,	10854
any civil action arising under federal law, the law of another	10855
state, or the law of a foreign jurisdiction. The reasonableness	10856
of the amount of any consent judgment or settlement is subject to	10857
the review and approval of the board of the port authority. The	10858
maximum aggregate amount of indemnification paid directly from	10859
funds to or on behalf of any director, officer or employee	10860
pursuant to this division shall be one million dollars per	10861
occurrence, regardless of the number of persons who suffer damage,	10862
injury, or death as a result of the occurrence.	10863

(2) A port authority shall not indemnify a director,	10864
officer, or employee under any of the following circumstances:	10865

(a) To the extent the director, officer, or employee is	10866
covered by a policy of insurance for civil liability purchased by	10867
the port authority;	10868

(b) When the director, officer, or employee acts manifestly	10869
outside the scope of his employment or official responsibilities,	10870
with malicious purpose, in bad faith, or in a wanton or reckless	10871
manner;	10872

(c) For any portion of a judgment that represents punitive	10873
or exemplary damages;	10874

(d) For any portion of a consent judgment or settlement that	10875
is unreasonable.	10876

(3) The port authority may purchase a policy or policies of	10877
insurance on behalf of directors, officers, and employees of the	10878
port authority from an insurer or insurers licensed to do business	10879
in this state providing coverage for damages in connection with	10880
any civil action, demand, or claim against the director, officer,	10881
or employee by reason of an act or omission by the director,	10882
officer, or employee occurring in the performance of his duties	10883
and not coming within the terms of division (C)(2)(b) of this	10884
section.	10885

(4) This section does not affect either of the following:

10886

(a) Any defense that would otherwise be available in an	10887
action alleging personal liability of a director, officer, or	10888
employee;	10889

(b) The operation of section 9.83 of the Revised Code.

10890

Sec. 4582.30.  (A)(1) Except as otherwise provided in	10891
division (A)(2) or (3) of this section, the area of jurisdiction	10892
of a port authority created in accordance with section 4582.22 of	10893
the Revised Code shall include all of the territory of the	10894
political subdivision or subdivisions creating it and, if the port	10895
authority owns or leases a railroad line or airport, the territory	10896
on which the railroad's line, terminals, and related facilities or	10897
the airport's runways, terminals, and related facilities are	10898
located, regardless of whether the territory is located in the	10899
political subdivision or subdivisions creating the port authority.	10900

(2) A municipal corporation with a population of at least	10901
one hundred thousand according to the most recent federal	10902
decennial census may create a port authority within a county that	10903
previously created an existing port authority, if the municipal	10904
corporation did not join with the county in creating the port	10905
authority or thereafter join that port authority. The newly	10906
created port authority and the previously created and existing	10907
port authority shall possess concurrent jurisdiction over any	10908
territory within the jurisdiction of both.	10909

(3) A county may create a port authority the area of	10910
jurisdiction of which excludes any territory that is located in	10911
that county and is in the area of jurisdiction of any port	10912
authority created in accordance with section 4582.02 or 4582.22 of	10913
the Revised Code that is then existing in the county.	10914

(B)(1) Except as provided in division (B)(2) or (3) of this	10915
section, a political subdivision that has created a port authority	10916
or joined an existing port authority shall not be included in any	10917
other port authority.	10918

(2) A municipal corporation with a population of less than	10919
one hundred thousand according to the most recent federal	10920
decennial census that has joined an existing port authority in a	10921
county with a population of five hundred thousand or less may	10922
create a port authority within the territorial jurisdiction of the	10923
municipal corporation.	10924

(3) A municipal corporation and a county jointly may create a	10925
new port authority if both of the following apply:	10926

(a) The municipal corporation created a port authority after	10927
July 9, 1982, and that port authority operates an airport;	10928

(b) The county joined a port authority after July 9, 1982,	10929
and that port authority operated an airport.	10930

Sec. 4582.46. The exercise of the powers granted by sections	10931
4582.22 to 4582.59 of the Revised Code shall be for the benefit of	10932
the people of the state, for the improvement of their health,	10933
safety, convenience, and welfare, and for the enhancement of their	10934
residential, agricultural, recreational, economic, commercial,	10935
distribution, research, and industrial opportunities and is a	10936
public purpose. As the operation and maintenance of port	10937
authority facilities will constitute the performance of essential	10938
governmental functions, aA port authority shall be exempt from	10939
and shall not be required to pay any taxes or assessments upon any	10940
port authority facility, upon anyon property acquired or used by	10941
the port authority under sections 4582.22 to 4582.59 of the	10942
Revised Code, or upon the income therefrom, nor shall the transfer	10943
to or from a port authority of title or possession of any port	10944
authority facility, part thereof, or item included or to be	10945
included in any such facility, be subject to the taxes levied	10946
pursuant to Chapters 5739. and 5741. of the Revised Code,	10947
provided, this, both real and personal, or any combination	10948
thereof, belonging to any port authority that is used exclusively	10949
for any authorized purpose. This exemption doesshall not apply	10950
to any property occupied and used during a tax year by a person	10951
who is a lessee of the property as of the tax lien date for that	10952
tax year under a written lease with a remaining term longer than	10953
one year. The bonds issued under this chapter, their transfer, and	10954
the income therefrom, shall at all times be free from taxation	10955
within the state.The immediately preceding sentence shall not	10956
apply to real or personal property, or any combination thereof,	10957
leased to a lessee, which property would be exempt from taxes	10958
under Chapter 5709. of the Revised Code if such property belonged	10959
to that lessee. Nothing in this section eliminates the lessor's	10960
or the lessee's obligation to comply with other provisions of the	10961
Revised Code to obtain an exemption for such property.	10962

Sec. 5709.61.  As used in sections 5709.61 to 5709.69 of the	10963
Revised Code:	10964

(A) "Enterprise zone" or "zone" means any of the following:

10965

(1) An area with a single continuous boundary designated in	10966
the manner set forth in section 5709.62 or 5709.63 of the Revised	10967
Code and certified by the director of development as having a	10968
population of at least four thousand according to the best and	10969
most recent data available to the director and having at least two	10970
of the following characteristics:	10971

(a) It is located in a municipal corporation defined by the	10972
United States office of management and budget as a central city of	10973
a metropolitan statistical area;	10974

(b) It is located in a county designated as being in the	10975
"Appalachian region" under the "Appalachian Regional Development	10976
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended;	10977

(c) Its average rate of unemployment, during the most recent	10978
twelve-month period for which data are available, is equal to at	10979
least one hundred twenty-five per cent of the average rate of	10980
unemployment for the state of Ohio for the same period;	10981

(d) There is a prevalence of commercial or industrial	10982
structures in the area that are vacant or demolished, or are	10983
vacant and the taxes charged thereon are delinquent, and	10984
certification of the area as an enterprise zone would likely	10985
result in the reduction of the rate of vacant or demolished	10986
structures or the rate of tax delinquency in the area;	10987

(e) The population of all census tracts in the area,	10988
according to the federal census of 1990, decreased by at least ten	10989
per cent between the years 1970 and 1990;	10990

(f) At least fifty-one per cent of the residents of the area	10991
have incomes of less than eighty per cent of the median income of	10992
residents of the municipal corporation or municipal corporations	10993
in which the area is located, as determined in the same manner	10994
specified under section 119(b) of the "Housing and Community	10995
Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318, as	10996
amended;	10997

(g) The area contains structures previously used for	10998
industrial purposes, but currently not so used due to age,	10999
obsolescence, deterioration, relocation of the former occupant's	11000
operations, or cessation of operations resulting from unfavorable	11001
economic conditions either generally or in a specific economic	11002
sector;	11003

(h) It is located within one or more adjacent city, local,	11004
or exempted village school districts, the income-weighted tax	11005
capacity of each of which is less than seventy per cent of the	11006
average of the income-weighted tax capacity of all city, local, or	11007
exempted village school districts in the state according to the	11008
most recent data available to the director from the department of	11009
taxation.	11010

The director of development shall adopt rules in accordance	11011
with Chapter 119. of the Revised Code establishing conditions	11012
constituting the characteristics described in divisions (A)(1)(d),	11013
(g), and (h) of this section.	11014

If an area could not be certified as an enterprise zone	11015
unless it satisfied division (A)(1)(g) of this section, the	11016
legislative authority may enter into agreements in that zone under	11017
section 5709.62, 5709.63, or 5709.632 of the Revised Code only if	11018
such agreements result in the development of the facilities	11019
described in that division, the parcel of land on which such	11020
facilities are situated, or adjacent parcels. The director of	11021
development annually shall review all agreements in such zones to	11022
determine whether the agreements have resulted in such	11023
development; if the director determines that the agreements have	11024
not resulted in such development, the director immediately shall	11025
revoke certification of the zone and notify the legislative	11026
authority of such revocation. Any agreements entered into prior	11027
to revocation under this paragraph shall continue in effect for	11028
the period provided in the agreement.	11029

(2) An area with a single continuous boundary designated in	11030
the manner set forth in section 5709.63 of the Revised Code and	11031
certified by the director of development as:	11032

(a) Being located within a county that contains a population	11033
of three hundred thousand or less;	11034

(b) Having a population of at least one thousand according	11035
to the best and most recent data available to the director;	11036

(c) Having at least two of the characteristics described in	11037
divisions (A)(1)(b) to (h) of this section.	11038

(3) An area with a single continuous boundary designated in	11039
the manner set forth under division (A)(1) of section 5709.632 of	11040
the Revised Code and certified by the director of development as	11041
having a population of at least four thousand, or under division	11042
(A)(2) of that section and certified as having a population of at	11043
least one thousand, according to the best and most recent data	11044
available to the director.	11045

(B) "Enterprise" means any form of business organization	11046
including, but not limited to, any partnership, sole	11047
proprietorship, or corporation, including an S corporation as	11048
defined in section 1361 of the Internal Revenue Code and any	11049
corporation that is majority work-owned either directly through	11050
the ownership of stock or indirectly through participation in an	11051
employee stock ownership plan.	11052

(C) "Facility" means an enterprise's place of business in a	11053
zone, including land, buildings, machinery, equipment, and other	11054
materials, except inventory, used in business. "Facility"	11055
includes land, buildings, machinery, production and station	11056
equipment, other equipment, and other materials, except inventory,	11057
used in business to generate electricity, provided that, for	11058
purposes of sections 5709.61 to 5709.69 of the Revised Code, the	11059
value of the property at such a facility shall be reduced by the	11060
value, if any, that is not apportioned under section 5727.15 of	11061
the Revised Code to the taxing district in which the facility is	11062
physically located. In the case of such a facility that is	11063
physically located in two adjacent taxing districts, the property	11064
located in each taxing district constitutes a separate facility.	11065

"Facility" does not include any portion of an enterprise's	11066
place of business used primarily for making retail sales, unless	11067
the place of business is located in an impacted city as defined in	11068
section 1728.01 of the Revised Code.	11069

(D) "Vacant facility" means a facility that has been vacant	11070
for at least ninety days immediately preceding the date on which	11071
an agreement is entered into under section 5709.62 or 5709.63 of	11072
the Revised Code.	11073

(E) "Expand" means to make expenditures to add land,	11074
buildings, machinery, equipment, or other materials, except	11075
inventory, to a facility that equal at least ten per cent of the	11076
market value of the facility prior to such expenditures, as	11077
determined for the purposes of local property taxation.	11078

(F) "Renovate" means to make expenditures to alter or repair	11079
a facility that equal at least fifty per cent of the market value	11080
of the facility prior to such expenditures, as determined for the	11081
purposes of local property taxation.	11082

(G) "Occupy" means to make expenditures to alter or repair a	11083
vacant facility equal to at least twenty per cent of the market	11084
value of the facility prior to such expenditures, as determined	11085
for the purposes of local property taxation.	11086

(H) "Project site" means all or any part of a facility that	11087
is newly constructed, expanded, renovated, or occupied by an	11088
enterprise.	11089

(I) "Project" means any undertaking by an enterprise to	11090
establish a facility or to improve a project site by expansion,	11091
renovation, or occupancy.	11092

(J) "Position" means the position of one full-time employee	11093
performing a particular set of tasks and duties.	11094

(K) "Full-time employee" means an individual who is employed	11095
for consideration by an enterprise for at least thirty-five hours	11096
a week, or who renders any other standard of service generally	11097
accepted by custom or specified by contract as full-time	11098
employment.	11099

(L) "New employee" means a full-time employee first employed	11100
by an enterprise at a facility that is a project site after the	11101
enterprise enters an agreement under section 5709.62 or 5709.63 of	11102
the Revised Code. "New employee" does not include an employee if,	11103
immediately prior to being employed by the enterprise, the	11104
employee was employed by an enterprise that is a related member or	11105
predecessor enterprise of that enterprise.	11106

(M) "Unemployed person" means any person who is totally	11107
unemployed in this state, as that term is defined in division (M)	11108
of section 4141.01 of the Revised Code, for at least ten	11109
consecutive weeks immediately preceding that person's employment	11110
at a facility that is a project site, or who is so unemployed for	11111
at least twenty-six of the fifty-two weeks immediately preceding	11112
that person's employment at such a facility.	11113

(N) "JTPA eligible employee" means any individual who is	11114
eligible for employment or training under the "Job Training	11115
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as	11116
amended.	11117

(O) "First used in business" means that the property	11118
referred to has not been used in business in this state by the	11119
enterprise that owns it, or by an enterprise that is a related	11120
member or predecessor enterprise of such an enterprise, other than	11121
as inventory, prior to being used in business at a facility as the	11122
result of a project.	11123

(P) "Training program" means any noncredit training program	11124
or course of study that is offered by any state college or	11125
university; university branch district; community college;	11126
technical college; nonprofit college or university certified under	11127
section 1713.02 of the Revised Code; school district; joint	11128
vocational school district; school registered and authorized to	11129
offer programs under section 3332.05 of the Revised Code; an	11130
entity administering any federal, state, or local adult education	11131
and training program; or any enterprise; and that meets all of the	11132
following requirements:	11133

(1) It is approved by the director of development;

11134

(2) It is established or operated to satisfy the need of a	11135
particular industry or enterprise for skilled or semi-skilled	11136
employees;	11137

(3) An individual is required to complete the course or	11138
program before filling a position at a project site.	11139

(Q) "Development" means to engage in the process of clearing	11140
and grading land, making, installing, or constructing water	11141
distribution systems, sewers, sewage collection systems, steam,	11142
gas, and electric lines, roads, curbs, gutters, sidewalks, storm	11143
drainage facilities, and construction of other facilities or	11144
buildings equal to at least fifty per cent of the market value of	11145
the facility prior to the expenditures, as determined for the	11146
purposes of local property taxation.	11147

(R) "Large manufacturing facility" means a single Ohio	11148
facility that employed an average of at least one thousand	11149
individuals during the five calendar years preceding an agreement	11150
authorized under division (C)(3) of section 5709.62 or division	11151
(B)(2) of section 5709.63 of the Revised Code. For purposes of	11152
this division, both of the following apply:	11153

(1) A single Ohio manufacturing facility employed an average	11154
of at least one thousand individuals during the five calendar	11155
years preceding entering into such an agreement if one-fifth of	11156
the sum of the number of employees employed on the highest	11157
employment day during each of the five calendar years equals or	11158
exceeds one thousand.	11159

(2) The highest employment day is the day or days during a	11160
calendar year on which the number of employees employed at a	11161
single Ohio manufacturing facility was greater than on any other	11162
day during the calendar year.	11163

(S) "Business cycle" means the cycle of business activity	11164
usually regarded as passing through alternating stages of	11165
prosperity and depression.	11166

(T) "Making retail sales" means the effecting of	11167
point-of-final-purchase transactions at a facility open to the	11168
consuming public, wherein one party is obligated to pay the price	11169
and the other party is obligated to provide a service or to	11170
transfer title to or possession of the item sold.	11171

(U) "Environmentally contaminated" means that hazardous	11172
substances exist at a facility under conditions that have caused	11173
or would cause the facility to be identified as contaminated by	11174
the state or federal environmental protection agency. These may	11175
include facilities located at sites identified in the master sites	11176
list or similar database maintained by the state environmental	11177
protection agency if the sites have been investigated by the	11178
agency and found to be contaminated.	11179

(V) "Remediate" means to make expenditures to clean up an	11180
environmentally contaminated facility so that it is no longer	11181
environmentally contaminated that equal at least ten per cent of	11182
the real property market value of the facility prior to such	11183
expenditures as determined for the purposes of property taxation.	11184

(W) "Related member" has the same meaning as defined in	11185
section 5733.042 of the Revised Code without regard to division	11186
(B) of that section, except that it is used with respect to an	11187
enterprise rather than a taxpayer.	11188

(X) "Predecessor enterprise" means an enterprise from which	11189
the assets or equity of another enterprise has been transferred,	11190
which transfer resulted in the full or partial nonrecognition of	11191
gain or loss, or resulted in a carryover basis, both as determined	11192
by rule adopted by the tax commissioner.	11193

(Y) "Successor enterprise" means an enterprise to which the	11194
assets or equity of another enterprise has been transferred, which	11195
transfer resulted in the full or partial nonrecognition of gain or	11196
loss, or resulted in a carryover basis, both as determined by rule	11197
adopted by the tax commissioner.	11198

Sec. 5715.20. (A) Whenever a county board of revision renders	11199
a decision on a complaint filed under section 5715.19 of the	11200
Revised Code, it shall certify its action by certified mail to the	11201
person in whose name the property is listed or sought to be	11202
listed,and to the complainant if hethe complainant is a person	11203
other thannot the person in whose name the property is listed or	11204
sought to be listed, and to the tax commissioner. A person's time	11205
to file an appeal under section 5717.01 of the Revised Code	11206
commences with the mailing of notice of the decision to that	11207
person as provided in this section. The tax commissioner's time	11208
to file an appeal under section 5717.01 of the Revised Code	11209
commences with the last mailing to a person required to be mailed	11210
notice of the decision as provided in this division.	11211

(B) The tax commissioner may order the county auditor to	11212
send to the commissioner the decisions of the board of revision	11213
rendered on complaints filed under section 5715.19 of the Revised	11214
Code in the manner and for the time period that the commissioner	11215
prescribes. Nothing in this division extends the commissioner's	11216
time to file an appeal under section 5717.01 of the Revised Code.	11217

Sec. 5717.01.  An appeal from a decision of a county board of	11218
revision may be taken to the board of tax appeals within thirty	11219
days after notice of the decision of the county board of revision	11220
is mailed as provided in division (A) of section 5715.20 of the	11221
Revised Code. Such an appeal may be taken by the county auditor,	11222
the tax commissioner, or any board, legislative authority, public	11223
official, or taxpayer authorized by section 5715.19 of the Revised	11224
Code to file complaints against valuations or assessments with the	11225
auditor. Such appeal shall be taken by the filing of a notice of	11226
appeal, in person or by certified mail, express mail, or	11227
authorized delivery service, with the board of tax appeals and	11228
with the county board of revision. If notice of appeal is filed	11229
by certified mail, express mail, or authorized delivery service as	11230
provided in section 5703.056 of the Revised Code, the date of the	11231
United States postmark placed on the sender's receipt by the	11232
postal service or the date of receipt recorded by the authorized	11233
delivery service shall be treated as the date of filing. Upon	11234
receipt of such notice of appeal such county board of revision	11235
shall by certified mail notify all persons thereof who were	11236
parties to the proceeding before such county board of revision,	11237
and shall file proof of such notice with the board of tax appeals.	11238
The county board of revision shall thereupon certify to the board	11239
of tax appeals a transcript of the record of the proceedings of	11240
the county board of revision pertaining to the original complaint,	11241
and all evidence offered in connection therewith. Such appeal may	11242
be heard by the board of tax appeals at its offices in Columbus or	11243
in the county where the property is listed for taxation, or the	11244
board of tax appeals may cause its examiners to conduct such	11245
hearing and to report to it their findings for affirmation or	11246
rejection.	11247

The board of tax appeals may order the appeal to be heard on	11248
the record and the evidence certified to it by the county board of	11249
revision, or it may order the hearing of additional evidence, and	11250
it may make such investigation concerning the appeal as it deems	11251
proper.	11252

Sec. 5731.21.  (A)(1)(a) Except as provided under division	11253
(A)(3) of this section, the executor or administrator, or, if no	11254
executor or administrator has been appointed, another person in	11255
possession of property the transfer of which is subject to estate	11256
taxes under section 5731.02 or division (A) of section 5731.19 of	11257
the Revised Code, shall file an estate tax return, within nine	11258
months of the date of the decedent's death, in the form prescribed	11259
by the tax commissioner, in duplicate, with the probate court of	11260
the county. The return shall include all property the transfer of	11261
which is subject to estate taxes, whether that property is	11262
transferred under the last will and testament of the decedent or	11263
otherwise. The time for filing the return may be extended by the	11264
tax commissioner.	11265

(b) The estate tax return described in division (A)(1)(a) of	11266
this section shall be accompanied by a certificate, in the form	11267
prescribed by the tax commissioner, that is signed by the	11268
executor, administrator, or other person required to file the	11269
return, and that states all of the following:	11270

(i) The fact that the return was filed;

11271

(ii) The date of the filing of the return;

11272

(iii) The fact that the estate taxes under section 5731.02	11273
or division (A) of section 5731.19 of the Revised Code, that are	11274
shown to be due in the return, have been paid in full;	11275

(iv) If applicable, the fact that real property listed in	11276
the inventory for the decedent's estate is included in the return;	11277

(v) If applicable, the fact that real property not listed in	11278
the inventory for the decedent's estate, including, but not	11279
limited to, survivorship tenancy property as described in section	11280
5302.17 of the Revised Code or transfer on death property as	11281
described in sections 5302.22 and 5302.23 of the Revised Code,	11282
also is included in the return. In this regard, the certificate	11283
additionally shall describe that real property by the same	11284
description used in the return.	11285

(2) The probate court shall forward one copy of the estate	11286
tax return described in division (A)(1)(a) of this section to the	11287
tax commissioner.	11288

(3) A person may, but shall not be required to, file a	11289
return under division (A) of this section if the decedent was a	11290
resident of this state and the value of the decedent's gross	11291
estate is twenty-five thousand dollars or less in the case of a	11292
decedent dying on or after July 1, 1968, but before January 1,	11293
2001; two hundred thousand dollars or less in the case of a	11294
decedent dying on or after January 1, 2001, but before January 1,	11295
2002; or three hundred thirty-eight thousand three hundred	11296
thirty-three dollars or less in the case of a decedent dying on or	11297
after January 1, 2002. If a probate court issues an order that	11298
grants a summary release from administration in connection with a	11299
decedent's estate under section 2113.031 of the Revised Code, that	11300
order eliminates the duty of all persons to file an estate tax	11301
return and certificate under divisions (A)(1)(a) and (b) of this	11302
section with respect to the estate for which the order was	11303
granted.	11304

(4)(a) Upon receipt of the estate tax return described in	11305
division (A)(1)(a) of this section and the accompanying	11306
certificate described in division (A)(1)(b) of this section, the	11307
probate court promptly shall give notice of the return, by a form	11308
prescribed by the tax commissioner, to the county auditor. The	11309
auditor then shall make a charge based upon the notice and shall	11310
certify a duplicate of the charge to the county treasurer. The	11311
treasurer then shall collect, subject to division (A) of section	11312
5731.25 of the Revised Code or any other statute extending the	11313
time for payment of an estate tax, the tax so charged.	11314

(b) Upon receipt of the return and the accompanying	11315
certificate, the probate court also shall forward the certificate	11316
to the auditor. When satisfied that the estate taxes under	11317
section 5731.02 or division (A) of section 5731.19 of the Revised	11318
Code, that are shown to be due in the return, have been paid in	11319
full, the auditor shall stamp the certificate so forwarded to	11320
verify that payment. The auditor then shall return the stamped	11321
certificate to the probate court.	11322

(5)(a) The certificate described in division (A)(1)(b) of	11323
this section is a public record subject to inspection and copying	11324
in accordance with section 149.43 of the Revised Code. It shall	11325
be kept in the records of the probate court pertaining to the	11326
decedent's estate and is not subject to the confidentiality	11327
provisions of section 5731.90 of the Revised Code.	11328

(b) All persons are entitled to rely on the statements	11329
contained in a certificate as described in division (A)(1)(b) of	11330
this section if it has been filed in accordance with that	11331
division, forwarded to a county auditor and stamped in accordance	11332
with division (A)(4) of this section, and placed in the records of	11333
the probate court pertaining to the decedent's estate in	11334
accordance with division (A)(5)(a) of this section. The real	11335
property referred to in the certificate shall be free of, and may	11336
be regarded by all persons as being free of, any lien for estate	11337
taxes under section 5731.02 and division (A) of section 5731.19 of	11338
the Revised Code.	11339

(B) An estate tax return filed under this section, in the	11340
form prescribed by the tax commissioner, and showing that no	11341
estate tax is due shall result in a determination that no estate	11342
tax is due, if the tax commissioner within three months after the	11343
receipt of the return by the department of taxation, fails to file	11344
exceptions to the return in the probate court of the county in	11345
which the return was filed. A copy of exceptions to a return of	11346
that nature, when the tax commissioner files them within that	11347
period, shall be sent by ordinary mail to the person who filed the	11348
return. The tax commissioner is not bound under this division by	11349
a determination that no estate tax is due, with respect to	11350
property not disclosed in the return.	11351

(C) If the executor, administrator, or other person required	11352
to file an estate tax return fails to file it within nine months	11353
of the date of the decedent's death, the tax commissioner may	11354
determine the estate tax in that estate and issue a certificate of	11355
determination in the same manner as is provided in division (B) of	11356
section 5731.27 of the Revised Code. A certificate of	11357
determination of that nature has the same force and effect as	11358
though a return had been filed and a certificate of determination	11359
issued with respect to the return.	11360

Sec. 5733.021.  (A) Each taxpayer that does not in January	11361
file the report and make the payment required by section 5733.02	11362
of the Revised Code shall make and file a declaration of estimated	11363
tax report for the tax year.	11364

The declaration of estimated tax report shall be filed with	11365
the tax commissioner on or before the last day of January in such	11366
form as prescribed by the tax commissioner, and shall reflect an	11367
estimate of the total amount due under this chapter for the tax	11368
year.	11369

(B) A taxpayer required to file a declaration of estimated	11370
tax report shall make remittance of such estimated tax to the tax	11371
commissioner as follows:	11372

(1) The entire estimated tax at the time of filing the	11373
declaration of estimated tax report, if such estimated tax is not	11374
in excess of the minimum tax as provided in section 5733.06 of the	11375
Revised Code;	11376

(2) If the estimated tax is in excess of the minimum tax:

11377

(a) One-third of the estimated tax at the time of filing the	11378
declaration of estimated tax report;	11379

(b) Two-thirds of the estimated tax on or before the last	11380
day of March of the tax year, if the report required by section	11381
5733.02 of the Revised Code is filed on or before the last day	11382
of March of the tax year.	11383

(3) If the estimated tax is in excess of the minimum tax,	11384
and an extension of time for filing the report required by section	11385
5733.02 of the Revised Code has been granted pursuant to section	11386
5733.13 of the Revised Code:	11387

(a) One-third of the estimated tax at the time of filing the	11388
declaration of estimated tax report;	11389

(b) One-third of the estimated tax on or before the last day	11390
of March of the tax year;	11391

(c) One-third of the estimated tax on or before the last day	11392
of May of the tax year.	11393

Remittance of the estimated tax shall be made payable to the	11394
treasurer of state and shall be made in the form prescribed by the	11395
tax commissioner, including electronic funds transfer if required	11396
by section 5733.022 of the Revised Code.	11397

The tax commissioner shall immediately forward to the	11398
treasurer of state all amounts received under this section, and	11399
the treasurer of state shall credit all payments of such estimated	11400
tax as provided in section 5733.12 of the Revised Code.	11401

(C)(1)(a) For any period of delinquency ending prior to the	11402
first day of June of the tax year:	11403

(a) The, the penalty under division (A)(2) of section	11404
5733.28 of the Revised Code may only be imposed only on the	11405
delinquent portion of the estimated tax required to be paid under	11406
divisions (B)(2)(a) and (b) and (B)(3)(a) and (b) of this section.	11407

(b) The interest under section 5733.26 of the Revised Code	11408
shall only be imposed on the delinquent portion of estimated tax	11409
required to be paid under divisions (B)(2)(a), (B)(2)(b),	11410
(B)(3)(a), and (B)(3)(b) of this section.	11411

(c) If the taxpayer was not subject to tax for the	11412
immediately preceding tax year, "estimated tax" for purposes of	11413
division (C)(1) of this section is ninety per cent of the	11414
qualifying net tax for the current tax year. If the taxpayer was	11415
subject to the tax for the immediately preceding tax year,	11416
"estimated tax" for purposes of division (C)(1) of this section is	11417
the lesser of one hundred per cent of the qualifying net tax for	11418
the immediately preceding tax year or ninety per cent of the	11419
qualifying net tax for the current tax year.	11420

(2)(a) For any period of delinquency commencing the first	11421
day of June of the tax year and concluding on the extended due	11422
date pursuant to section 5733.13 of the Revised Code:	11423

(a) The, the penalty under division (A)(2) of section	11424
5733.28 of the Revised Code may only be imposed only on the	11425
delinquent portion of the estimated tax required to be paid under	11426
division (B)(3)(c) of this section.	11427

(b) The interest under section 5733.26 of the Revised Code	11428
shall be imposed on the delinquent portion of the amount in	11429
division (C)(3)(a) of this section for the current tax year.	11430

(c) For purposes of division (C)(2) of this section,	11431
"estimated tax" is ninety per cent of the qualifying net tax for	11432
the current tax year.	11433

(3) If the taxpayer did not file a report under section	11434
5733.02 of the Revised Code for the tax year or failed to prepare	11435
and file the report in good faith for the tax year, "qualifying	11436
net tax" as used in division (C) of this section for that tax year	11437
means the amount described in division (C)(3)(a) of this division	11438
section. Otherwise, "qualifying net tax" as used in division (C)	11439
of this section for that tax year means the lesser of the amount	11440
described in division (C)(3)(a) or (b) of this section:	11441

(a) The tax imposed by sections 5733.06, 5733.065, and	11442
5733.066 of the Revised Code for that tax year reduced by the	11443
credits listed in section 5733.98 of the Revised Code. If the	11444
credits exceed the total tax, the qualifying net tax is zerothe	11445
minimum tax.	11446

(b) The lesser of the tax shown on the report, prepared and	11447
filed in good faith, reduced by the credits shown on that report,	11448
or the tax shown on an amended report, prepared and filed in good	11449
faith, reduced by the credits shown on that amended report. If	11450
the credits shown exceed the total tax shown, the qualifying net	11451
tax is zerothe minimum tax.	11452

Sec. 5733.26.  (A) Except as provided in section 5733.261 of	11453
the Revised Code, if the tax imposed by sectionsections 5733.06,	11454
5733.065, and 5733.066 of the Revised Code, or any portion of that	11455
tax, whether determined by the tax commissioner or the taxpayer	11456
for the tax year, reduced by the credits listed in section 5733.98	11457
of the Revised Code, is not paid on or before the date prescribed	11458
for its payment, interest shall be assessed, collected, and paid,	11459
in the same manner as the tax, upon such unpaid amount at the rate	11460
per annum prescribed by section 5703.47 of the Revised Code from	11461
the date prescribed for its payment until it is paid or until the	11462
day an assessment is issued under section 5733.11 of the Revised	11463
Code, whichever occurs first. For estimated tax payments due under	11464
division (B) of section 5733.021 of the Revised Code, the interest	11465
due on the delinquent portion of the estimated tax required to be	11466
paid under that section shall be based on the tax owed for the tax	11467
year without regard to division (C) of section 5733.021 of the	11468
Revised Code.	11469

(B) Interest shall be allowed and paid at the rate per annum	11470
prescribed by section 5703.47 of the Revised Code upon amounts	11471
refunded with respect to the tax imposed by sectionsections	11472
5733.06, 5733.065, and 5733.066 of the Revised Code. The interest	11473
shall run from whichever of the following dates is the latest	11474
until the date the refund is paid: the date of the illegal,	11475
erroneous, or excessive payment; the ninetieth day after the final	11476
date the annual report under section 5733.02 of the Revised Code	11477
was required to be filed; or the ninetieth day after the date that	11478
report was filed.	11479

If the overpayment results from the carryback of a net	11480
capital loss to a previous taxable year, the overpayment is deemed	11481
not to have been made prior to the filing date, including any	11482
extension thereof, for the taxable year in which the net capital	11483
loss arises.	11484

Sec. 5733.40.  As used in sections 5733.40 and 5733.41 and	11485
Chapter 5747. of the Revised Code:	11486

(A)(1) "Adjusted qualifying amount" means either of the	11487
following:	11488

(a) The sum of a qualifying investor's distributive share	11489
of the income, gain, expense, or loss of a qualifying pass-through	11490
entity for the qualifying taxable year of the qualifying	11491
pass-through entity multiplied by the apportionment fraction	11492
defined in division (B) of this section, subject to section	11493
5733.401 of the Revised Code and divisions (A)(2) to (7) of this	11494
section;	11495

(b) The sum of a qualifying beneficiary's share of the	11496
qualifying net income and qualifying net gain distributed by a	11497
qualifying trust for the qualifying taxable year of the qualifying	11498
trust multiplied by the apportionment fraction defined in division	11499
(B) of this section, subject to section 5733.401 of the Revised	11500
Code and divisions (A)(2) to (6) of this section.	11501

(2) The sum shall exclude any amount which, pursuant to the	11502
Constitution of the United States, the Constitution of Ohio, or	11503
any federal law is not subject to a tax on or measured by net	11504
income.	11505

(3) The sum shall be increased by all amounts representing	11506
expenses other than amounts described in division (A)(7) of this	11507
section that the qualifying entity paid to or incurred with	11508
respect to direct or indirect transactions with one or more	11509
related members, excluding the cost of goods sold calculated in	11510
accordance with section 263A of the Internal Revenue Code and	11511
United States department of the treasury regulations issued	11512
thereunder. Nothing in division (A)(3) of this section shall be	11513
construed to limit solely to this chapter the application of	11514
section 263A of the Internal Revenue Code and United States	11515
department of the treasury regulations issued thereunder.	11516

(4) The sum shall be increased by all recognized losses,	11517
other than losses from sales of inventory the cost of which is	11518
calculated in accordance with section 263A of the Internal Revenue	11519
Code and United States department of the treasury regulations	11520
issued thereunder, with respect to all direct or indirect	11521
transactions with one or more related members. Losses from the	11522
sales of such inventory shall be calculated in accordance with	11523
section 482 of the Internal Revenue Code and United States	11524
department of the treasury regulations issued thereunder. Nothing	11525
in division (A)(4) of this section shall be construed to limit	11526
solely to this section the application of section 263A and	11527
section 482 of the Internal Revenue Code and United States	11528
department of the treasury regulations issued thereunder.	11529

(5) The sum shall be increased or decreased by an amount	11530
equal to the qualifying investor's or qualifying beneficiary's	11531
distributive or proportionate share of the amount that the	11532
qualifying entity would be required to add or deduct under	11533
divisions (A)(20) and (21) of section 5747.01 of the Revised Code	11534
if the qualifying entity were a taxpayer for the purposes of	11535
Chapter 5747. of the Revised Code, multiplied by the apportionment	11536
fraction for the qualifying entity's taxable year for which the	11537
addition or deduction would be required to be made.	11538

(6) The sum shall be computed without regard to section	11539
5733.051 or division (D) of section 5733.052 of the Revised Code.	11540

(7) For the purposes of Chapters 5733. and 5747. of the	11541
Revised Code, guaranteed payments or compensation paid to	11542
investors by a qualifying entity that is not subject to the tax	11543
imposed by section 5733.06 of the Revised Code shall be considered	11544
a distributive share of income of the qualifying entity. Division	11545
(A)(7) of this section applies only to such payments or such	11546
compensation paid to an investor who at any time during the	11547
qualifying entity's taxable year holds at least a twenty per cent	11548
direct or indirect interest in the profits or capital of the	11549
qualifying entity.	11550

(B) "Apportionment fraction" means:

11551

(1) With respect to a qualifying pass-through entity other	11552
than a financial institution, the fraction calculated pursuant to	11553
division (B)(2) of section 5733.05 of the Revised Code as if the	11554
qualifying pass-through entity were a corporation subject to the	11555
tax imposed by section 5733.06 of the Revised Code;	11556

(2) With respect to a qualifying pass-through entity that is	11557
a financial institution, the fraction calculated pursuant to	11558
division (C) of section 5733.056 of the Revised Code as if the	11559
qualifying pass-through entity were a financial institution	11560
subject to the tax imposed by section 5733.06 of the Revised Code.	11561

(3) With respect to a qualifying trust, the fraction	11562
calculated pursuant to division (B)(2) of section 5733.05 of the	11563
Revised Code as if the qualifying trust were a corporation subject	11564
to the tax imposed by section 5733.06 of the Revised Code, except	11565
that the property, payroll, and sales fractions shall be	11566
calculated by including in the numerator and denominator of the	11567
fractions only the property, payroll, and sales, respectively,	11568
directly related to the production of income or gain from	11569
acquisition, ownership, use, maintenance, management, or	11570
disposition of tangible personal property located in this state at	11571
any time during the qualifying trust's qualifying taxable year or	11572
of real property located in this state.	11573

(C) "Qualifying beneficiary" means any individual that,	11574
during the qualifying taxable year of a qualifying trust, is a	11575
beneficiary of that trust, but does not include an individual who	11576
is a resident taxpayer for the purposes of Chapter 5747. of the	11577
Revised Code for the entire qualifying taxable year of the	11578
qualifying trust.	11579

(D) "Fiscal year" means an accounting period ending on any	11580
day other than the thirty-first day of December.	11581

(E) "Individual" means a natural person.

11582

(F) "Month" means a calendar month.

11583

(G) "Partnership" has the same meaning as in section 5747.01	11584
of the Revised Code.	11585

(H) "Investor" means any person that, during any portion of a	11586
taxable year of a qualifying pass-through entity, is a partner,	11587
member, shareholder, or investor in that qualifying pass-through	11588
entity.	11589

(I) Except as otherwise provided in section 5733.402 or	11590
5747.401 of the Revised Code, "qualifying investor" means any	11591
investor except those described in divisions (I)(1) to (9) of this	11592
section.	11593

(1) An investor satisfying one of the descriptions under	11594
section 501(a) or (c) of the Internal Revenue Code, an electing	11595
small business trust, a partnership with equity securities	11596
registered with the United States securities and exchange	11597
commission under section 12 of the "Securities Exchange Act of	11598
1934," as amended, or an investor described in division (F) of	11599
section 3334.01, or division (A) or (C) of section 5733.09 of the	11600
Revised Code for the entire qualifying taxable year of the	11601
qualifying pass-through entity.	11602

(2) An investor who is either an individual or an estate and	11603
is a resident taxpayer for the purposes of section 5747.01 of the	11604
Revised Code for the entire qualifying taxable year of the	11605
qualifying pass-through entity.	11606

(3) An investor who is an individual for whom the qualifying	11607
pass-through entity makes a good faith and reasonable effort to	11608
comply fully and timely with the filing and payment requirements	11609
set forth in division (D) of section 5747.08 of the Revised Code	11610
and section 5747.09 of the Revised Code with respect to the	11611
individual's adjusted qualifying amount for the entire qualifying	11612
taxable year of the qualifying pass-through entity.	11613

(4) An investor that is another qualifying pass-through	11614
entity having only investors described in division (I)(1), (2),	11615
(3), or (6) of this section during the three-year period beginning	11616
twelve months prior to the first day of the qualifying taxable	11617
year of the qualifying pass-through entity.	11618

(5) An investor that is another pass-through entity having	11619
no investors other than individuals and estates during the	11620
qualifying taxable year of the qualifying pass-through entity in	11621
which it is an investor, and that makes a good faith and	11622
reasonable effort to comply fully and timely with the filing and	11623
payment requirements set forth in division (D) of section 5747.08	11624
of the Revised Code and section 5747.09 of the Revised Code with	11625
respect to investors that are not resident taxpayers of this state	11626
for the purposes of Chapter 5747. of the Revised Code for the	11627
entire qualifying taxable year of the qualifying pass-through	11628
entity in which it is an investor.	11629

(6) An investor that is a financial institution required to	11630
calculate the tax in accordance with division (D) of section	11631
5733.06 of the Revised Code on the first day of January of the	11632
calendar year immediately following the last day of the financial	11633
institution's calendar or fiscal year in which ends the taxpayer's	11634
taxable year.	11635

(7) An investor other than an individual that satisfies all	11636
the following:	11637

(a) The investor submits a written statement to the	11638
qualifying pass-through entity stating that the investor	11639
irrevocably agrees that the investor has nexus with this state	11640
under the Constitution of the United States and is subject to and	11641
liable for the tax calculated under division (B) of section	11642
5733.06 of the Revised Code with respect to the investor's	11643
adjusted qualifying amount for the entire qualifying taxable year	11644
of the qualifying pass-through entity. The statement is subject	11645
to the penalties of perjury, shall be retained by the qualifying	11646
pass-through entity for no fewer than seven years, and shall be	11647
delivered to the tax commissioner upon request.	11648

(b) The investor makes a good faith and reasonable effort to	11649
comply timely and fully with all the reporting and payment	11650
requirements set forth in Chapter 5733. of the Revised Code with	11651
respect to the investor's adjusted qualifying amount for the	11652
entire qualifying taxable year of the qualifying pass-through	11653
entity.	11654

(c) Neither the investor nor the qualifying pass-through	11655
entity in which it is an investor, before, during, or after the	11656
qualifying pass-through entity's qualifying taxable year, carries	11657
out any transaction or transactions with one or more related	11658
members of the investor or the qualifying pass-through entity	11659
resulting in a reduction or deferral of tax imposed by Chapter	11660
5733. of the Revised Code with respect to all or any portion of	11661
the investor's adjusted qualifying amount for the qualifying	11662
pass-through entity's taxable year, or that constitute a sham,	11663
lack economic reality, or are part of a series of transactions the	11664
form of which constitutes a step transaction or transactions or	11665
does not reflect the substance of those transactions.	11666

(8) Any other investor that the tax commissioner may	11667
designate by rule. The tax commissioner may adopt rules including	11668
a rule defining "qualifying investor" or "qualifying beneficiary"	11669
and governing the imposition of the withholding tax imposed by	11670
section 5747.41 of the Revised Code with respect to an individual	11671
who is a resident taxpayer for the purposes of Chapter 5747. of	11672
the Revised Code for only a portion of the qualifying taxable year	11673
of the qualifying entity.	11674

(9) An investor that is a trust or fund the beneficiaries of	11675
which, during the qualifying taxable year of the qualifying	11676
pass-through entity, are limited to the following:	11677

(a) A person that is or may be the beneficiary of a trust	11678
subject to Subchapter D of Chapter 1 of Subtitle A of the Internal	11679
Revenue Code.	11680

(b) A person that is or may be the beneficiary of or the	11681
recipient of payments from a trust or fund that is a nuclear	11682
decommissioning reserve fund, a designated settlement fund, or any	11683
other trust or fund established to resolve and satisfy claims that	11684
may otherwise be asserted by the beneficiary or a member of the	11685
beneficiary's family. Sections 267(c)(4), 468A(e), and 468B(d)(2)	11686
of the Internal Revenue Code apply to the determination of whether	11687
such a person satisfies division (I)(9) of this section.	11688

(c) A person who is or may be the beneficiary of a trust	11689
that, under its governing instrument, is not required to	11690
distribute all of its income currently. Division (I)(9)(c) of	11691
this section applies only if the trust, prior to the due date for	11692
filing the qualifying pass-through entity's return for taxes	11693
imposed by section 5733.41 and sections 5747.41 to 5747.453 of the	11694
Revised Code, irrevocably agrees in writing that for the taxable	11695
year during or for which the trust distributes any of its income	11696
to any of its beneficiaries, the trust is a qualifying trust and	11697
will pay the estimated tax, and will withhold and pay the withheld	11698
tax, as required under sections 5747.40 to 5747.453 of the Revised	11699
Code.	11700

For the purposes of division (I)(9) of this section, a trust	11701
or fund shall be considered to have a beneficiary other than	11702
persons described under divisions (I)(9)(a) to (c) of this section	11703
if a beneficiary would not qualify under those divisions under the	11704
doctrines of "economic reality," "sham transaction," "step	11705
doctrine," or "substance over form." A trust or fund described in	11706
division (I)(9) of this section bears the burden of establishing	11707
by a preponderance of the evidence that any transaction giving	11708
rise to the tax benefits provided under division (I)(9) of this	11709
section does not have as a principal purpose a claim of those tax	11710
benefits. Nothing in this section shall be construed to limit	11711
solely to this section the application of the doctrines referred	11712
to in this paragraph.	11713

(J) "Qualifying net gain" means any recognized net gain with	11714
respect to the acquisition, ownership, use, maintenance,	11715
management, or disposition of tangible personal property located	11716
in this state at any time during a trust's qualifying taxable year	11717
or real property located in this state.	11718

(K) "Qualifying net income" means any recognized income, net	11719
of related deductible expenses, other than distributions	11720
deductions with respect to the acquisition, ownership, use,	11721
maintenance, management, or disposition of tangible personal	11722
property located in this state at any time during the trust's	11723
qualifying taxable year or real property located in this state.	11724

(L) "Qualifying entity" means a qualifying pass-through	11725
entity or a qualifying trust.	11726

(M) "Qualifying trust" means a trust subject to subchapter J	11727
of the Internal Revenue Code that, during any portion of the	11728
trust's qualifying taxable year, has income or gain from the	11729
acquisition, management, ownership, use, or disposition of	11730
tangible personal property located in this state at any time	11731
during the trust's qualifying taxable year or real property	11732
located in this state. "Qualifying trust" does not include a	11733
person described in section 501(c) of the Internal Revenue Code or	11734
a person described in division (C) of section 5733.09 of the	11735
Revised Code.	11736

(N) "Qualifying pass-through entity" means a pass-through	11737
entity as defined in section 5733.04 of the Revised Code,	11738
excluding a person described in section 501(c) of the Internal	11739
Revenue Code, a partnership with equity securities registered with	11740
the United States securities and exchange commission under section	11741
12 of the Securities Exchange Act of 1934, as amended, or a person	11742
described in division (C) of section 5733.09 of the Revised Code.	11743

(O) "Quarter" means the first three months, the second three	11744
months, the third three months, or the last three months of a	11745
qualifying entity's qualifying taxable year.	11746

(P) "Related member" has the same meaning as in division	11747
(A)(6) of section 5733.042 of the Revised Code without regard to	11748
division (B) of that section. However, for the purposes of	11749
divisions (A)(3) and (4) of this section only, "related member"	11750
has the same meaning as in division (A)(6) of section 5733.042 of	11751
the Revised Code without regard to division (B) of that section,	11752
but shall be applied by substituting "forty per cent" for "twenty	11753
per cent" wherever "twenty per cent" appears in division (A) of	11754
that section.	11755

(Q) "Return" or "report" means the notifications and reports	11756
required to be filed pursuant to sections 5747.42 to 5747.45 of	11757
the Revised Code for the purpose of reporting the tax imposed	11758
under section 5733.41 or 5747.41 of the Revised Code, and included	11759
declarations of estimated tax when so required.	11760

(R) "Qualifying taxable year" means the calendar year or the	11761
qualifying entity's fiscal year ending during the calendar year,	11762
or fractional part thereof, for which the adjusted qualifying	11763
amount is calculated pursuant to sections 5733.40 and 5733.41 or	11764
sections 5747.40 to 5747.453 of the Revised Code.	11765

(S) "Distributive share" includes the sum of the income,	11766
gain, expense, or loss of a disregarded entity.	11767

Sec. 5733.401.  (A) As used in this section:

11768

(1) "Investment pass-through entity" means a pass-through	11769
entity having for its qualifying taxable year at least ninety per	11770
cent of its gross income from transaction fees in connection with	11771
the acquisition, ownership, or disposition of intangible property,	11772
loan fees, financing fees, consent fees, waiver fees, application	11773
fees, net management fees, dividend income, interest income, net	11774
capital gains from the sale or exchange of intangible property, or	11775
distributive shares of income from pass-through entities; and	11776
having for its qualifying taxable year at least ninety per cent of	11777
the net book value of its assets represented by intangible assets.	11778
Such percentages shall be the quarterly average of those	11779
percentages as calculated during the pass-through entity's taxable	11780
year.	11781

(2) "Net management fees" means management fees that a	11782
pass-through entity earns or receives from all sources, reduced by	11783
management fees that the pass-through entity incurs or pays to any	11784
person.	11785

(B) For the purposes of divisions (A) and (C) of this	11786
section only, an investment in a pass-through entity shall be	11787
deemed to be an investment in an intangible asset, and sections	11788
5733.057 and 5747.231 of the Revised Code do not apply for the	11789
purposes of making the determinations required by division (A) of	11790
this section or claiming the exclusion provided by division (C) of	11791
this section.	11792

(C)(1) Except as otherwise provided in division (D)(C)(2) of	11793
this section, for the purposes of division (A) of section 5733.40	11794
of the Revised Code, an investment pass-through entity shall	11795
exclude from the calculation of the adjusted qualifying amount all	11796
the portion of the investment pass-though entity's net income	11797
attributable to transaction fees in connection with the	11798
acquisition, ownership, or disposition of intangible property;	11799
loan fees; financing fees; consent fees; waiver fees; application	11800
fees; net management fees, but if such fees exceed five per cent	11801
of the entity's net income calculated in accordance with generally	11802
accepted accounting principles, all net management fees shall be	11803
included in the calculation of the adjusted qualifying amount;	11804
dividend income; interest income; net capital gains from the sale	11805
or, exchange, or other disposition of intangible property; and all	11806
types and classifications of income attributable to distributive	11807
shares of income from other pass-through entities. Nothing in	11808
this division shall be construed to provide for an exclusion of	11809
any item from adjusted qualifying amount more than once.	11810

(D) Sections 5733.057 and 5747.231 of the Revised Code do	11811
not apply for the purposes of making the determinations required	11812
by division (A) of this section or claiming the exclusion provided	11813
by division (C) of this section.	11814

(2) Notwithstanding division (C)(1) of this section, the	11815
portion of the investment pass-through entity's net income	11816
attributable to net management fees shall not be excluded from the	11817
calculation of the adjusted qualifying amount if such net	11818
management fees exceed five per cent of the entity's net income	11819
calculated in accordance with generally accepted accounting	11820
principles.	11821

Sec. 5739.031.  (A) Upon application, the tax commissioner	11822
may issue a direct payment permit that authorizes a consumer to	11823
pay the sales tax levied by or pursuant to section 5739.02,	11824
5739.021, 5739.023, or 5739.026 of the Revised Code or the use tax	11825
levied by or pursuant to section 5741.02, 5741.021, 5741.022, or	11826
5741.023 of the Revised Code directly to the state and waives the	11827
collection of the tax by the vendor or seller if payment directly	11828
to the state would improve compliance and increase the efficiency	11829
of the administration of the tax. The commissioner may adopt	11830
rules establishing the criteria for the issuance of such permits.	11831

(B) Each permit holder, on or before the twenty-third day of	11832
each month, shall make and file with the treasurer of state a	11833
return for the preceding month in such form as is prescribed by	11834
the tax commissioner and shall pay the tax shown on the return to	11835
be due. The return shall show the sum of the prices of taxable	11836
merchandise used and taxable services received, the amount of tax	11837
due from the permit holder, and such other information as the	11838
commissioner deems necessary. The commissioner, upon written	11839
request by the permit holder, may extend the time for making and	11840
filing returns and paying the tax. If the commissioner determines	11841
that a permit holder's tax liability is not such as to merit	11842
monthly filing, the commissioner may authorize the permit holder	11843
to file returns and pay the tax at less frequent intervals. The	11844
treasurer of state shall show on the return the date it was filed	11845
and the amount of the payment remitted to the treasurer.	11846
Thereafter, the treasurer immediately shall transmit all returns	11847
filed under this section to the tax commissioner.	11848

Any permit holder required to file a return and pay the tax	11849
under this section whose total payment for any calendar year	11850
equals or exceeds the amount shown in section 5739.032 of the	11851
Revised Code shall make each payment required by this section in	11852
the second ensuing and each succeeding year by electronic funds	11853
transfer as prescribed by section 5739.032 of the Revised Code,	11854
except as otherwise prescribed by that section.	11855

(C) For purposes of reporting and remitting the tax, the	11856
price of tangible personal property or services purchased by, or	11857
of tangible personal property produced by, the permit holder shall	11858
be determined under division (G) of section 5741.01 of the Revised	11859
Code. NotwithstandingExcept as otherwise provided in division (C)	11860
of section 5739.033 of the Revised Code, the situs of any	11861
purchase transaction made by the permit holder is the location	11862
where the tangible personal property or service is received by the	11863
permit holder.	11864

(D) It shall be the duty of every permit holder required to	11865
make a return and pay its tax under this section to keep and	11866
preserve suitable records of purchases together with invoices of	11867
purchases, bills of lading, asset ledgers, depreciation schedules,	11868
transfer journals, and such other primary and secondary records	11869
and documents in such form as the commissioner requires. All such	11870
records and other documents shall be open during business hours to	11871
the inspection of the tax commissioner, and shall be preserved for	11872
a period of four years, unless the commissioner, in writing, has	11873
authorized their destruction or disposal at an earlier date, or by	11874
order or by reason of a waiver of the four-year time limitation	11875
pursuant to section 5739.16 of the Revised Code requires that they	11876
be kept longer.	11877

(E) A permit granted pursuant to this section shall continue	11878
to be valid until surrendered by the holder or canceled for cause	11879
by the tax commissioner.	11880

(F) Persons who hold a direct payment permit that has not	11881
been canceled shall not be required to issue exemption	11882
certificates and shall not be required to pay the tax as	11883
prescribed in sections 5739.03, 5739.033, and 5741.12 of the	11884
Revised Code. Such persons shall notify vendors and sellers from	11885
whom purchases of tangible personal property or services are made,	11886
of their direct payment permit number and that the tax is being	11887
paid directly to the state. Upon receipt of such notice, such	11888
vendor or seller shall be absolved from all duties and liabilities	11889
imposed by section 5739.03 or 5741.04 of the Revised Code with	11890
respect to sales of tangible personal property or services to such	11891
permit holder.	11892

Vendors and sellers who make sales upon which the tax is not	11893
collected by reason of the provisions of this section shall	11894
maintain records in such manner that the amount involved and	11895
identity of the purchaser may be ascertained. The receipts from	11896
such sales shall not be subject to the tax levied in section	11897
5739.10 of the Revised Code.	11898

Upon the cancellation or surrender of a direct payment	11899
permit, the provisions of sections 5739.03, 5741.04 and 5741.12 of	11900
the Revised Code shall immediately apply to all purchases made	11901
subsequent to such cancellation or surrender by the person who	11902
previously held such permit, and such person shall so notify	11903
vendors and sellers from whom purchases of tangible personal	11904
property or services are made, in writing, prior to or at the time	11905
of the first purchase after such cancellation or surrender. Upon	11906
receipt of such notice, the vendor shall be subject to the	11907
provisions of sections 5739.03 and 5739.10 of the Revised Code and	11908
the seller shall be subject to the provisions of section 5741.04	11909
of the Revised Code, with respect to all sales subsequently made	11910
to such person. Failure of any such person to notify vendors or	11911
sellers from whom purchases of tangible personal property or	11912
services are made of the cancellation or surrender of a direct	11913
payment permit shall be considered as a refusal to pay the tax by	11914
the person required to issue such notice.	11915

Sec. 5747.01.  Except as otherwise expressly provided or	11916
clearly appearing from the context, any term used in this chapter	11917
has the same meaning as when used in a comparable context in the	11918
Internal Revenue Code, and all other statutes of the United States	11919
relating to federal income taxes.	11920

As used in this chapter:

11921

(A) "Adjusted gross income" or "Ohio adjusted gross income"	11922
means federal adjusted gross income, as defined and used in the	11923
Internal Revenue Code, adjusted as provided in this section:	11924

(1) Add interest or dividends on obligations or securities	11925
of any state or of any political subdivision or authority of any	11926
state, other than this state and its subdivisions and authorities.	11927

(2) Add interest or dividends on obligations of any	11928
authority, commission, instrumentality, territory, or possession	11929
of the United States to the extent that the interest or dividends	11930
are exempt from federal income taxes but not from state income	11931
taxes.	11932

(3) Deduct interest or dividends on obligations of the	11933
United States and its territories and possessions or of any	11934
authority, commission, or instrumentality of the United States to	11935
the extent that the interest or dividends are included in federal	11936
adjusted gross income but exempt from state income taxes under the	11937
laws of the United States.	11938

(4) Deduct disability and survivor's benefits to the extent	11939
included in federal adjusted gross income.	11940

(5) Deduct benefits under Title II of the Social Security	11941
Act and tier 1 railroad retirement benefits to the extent included	11942
in federal adjusted gross income under section 86 of the Internal	11943
Revenue Code.	11944

(6) In the case of a taxpayer who is a beneficiary of a	11945
trust that makes an accumulation distribution as defined in	11946
section 665 of the Internal Revenue Code, add, for the	11947
beneficiary's taxable years beginning before 2002 or after 2004,	11948
the portion, if any, of such distribution that does not exceed the	11949
undistributed net income of the trust for the three taxable years	11950
preceding the taxable year in which the distribution is made to	11951
the extent that the portion was not included in the trust's	11952
taxable income for any of the trust's taxable years beginning in	11953
2002, 2003, or 2004. "Undistributed net income of a trust" means	11954
the taxable income of the trust increased by (a)(i) the additions	11955
to adjusted gross income required under division (A) of this	11956
section and (ii) the personal exemptions allowed to the trust	11957
pursuant to section 642(b) of the Internal Revenue Code, and	11958
decreased by (b)(i) the deductions to adjusted gross income	11959
required under division (A) of this section, (ii) the amount of	11960
federal income taxes attributable to such income, and (iii) the	11961
amount of taxable income that has been included in the adjusted	11962
gross income of a beneficiary by reason of a prior accumulation	11963
distribution. Any undistributed net income included in the	11964
adjusted gross income of a beneficiary shall reduce the	11965
undistributed net income of the trust commencing with the earliest	11966
years of the accumulation period.	11967

(7) Deduct the amount of wages and salaries, if any, not	11968
otherwise allowable as a deduction but that would have been	11969
allowable as a deduction in computing federal adjusted gross	11970
income for the taxable year, had the targeted jobs credit allowed	11971
and determined under sections 38, 51, and 52 of the Internal	11972
Revenue Code not been in effect.	11973

(8) Deduct any interest or interest equivalent on public	11974
obligations and purchase obligations to the extent that the	11975
interest or interest equivalent is included in federal adjusted	11976
gross income.	11977

(9) Add any loss or deduct any gain resulting from the sale,	11978
exchange, or other disposition of public obligations to the extent	11979
that the loss has been deducted or the gain has been included in	11980
computing federal adjusted gross income.	11981

(10) Deduct or add amounts, as provided under section	11982
5747.70 of the Revised Code, related to contributions to variable	11983
college savings program accounts made or tuition credits purchased	11984
pursuant to Chapter 3334. of the Revised Code.	11985

(11)(a) Deduct, to the extent not otherwise allowable as a	11986
deduction or exclusion in computing federal or Ohio adjusted gross	11987
income for the taxable year, the amount the taxpayer paid during	11988
the taxable year for medical care insurance and qualified	11989
long-term care insurance for the taxpayer, the taxpayer's spouse,	11990
and dependents. No deduction for medical care insurance under	11991
division (A)(11) of this section shall be allowed either to any	11992
taxpayer who is eligible to participate in any subsidized health	11993
plan maintained by any employer of the taxpayer or of the	11994
taxpayer's spouse, or to any taxpayer who is entitled to, or on	11995
application would be entitled to, benefits under part A of Title	11996
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	11997
301, as amended. For the purposes of division (A)(11)(a) of this	11998
section, "subsidized health plan" means a health plan for which	11999
the employer pays any portion of the plan's cost. The deduction	12000
allowed under division (A)(11)(a) of this section shall be the net	12001
of any related premium refunds, related premium reimbursements, or	12002
related insurance premium dividends received during the taxable	12003
year.	12004

(b) Deduct, to the extent not otherwise deducted or excluded	12005
in computing federal or Ohio adjusted gross income during the	12006
taxable year, the amount the taxpayer paid during the taxable	12007
year, not compensated for by any insurance or otherwise, for	12008
medical care of the taxpayer, the taxpayer's spouse, and	12009
dependents, to the extent the expenses exceed seven and one-half	12010
per cent of the taxpayer's federal adjusted gross income.	12011

(c) For purposes of division (A)(11) of this section,	12012
"medical care" has the meaning given in section 213 of the	12013
Internal Revenue Code, subject to the special rules, limitations,	12014
and exclusions set forth therein, and "qualified long-term care"	12015
has the same meaning given in section 7702(B)(b) of the Internal	12016
Revenue Code.	12017

(12)(a) Deduct any amount included in federal adjusted gross	12018
income solely because the amount represents a reimbursement or	12019
refund of expenses that in any year the taxpayer had deducted as	12020
an itemized deduction pursuant to section 63 of the Internal	12021
Revenue Code and applicable United States department of the	12022
treasury regulations. The deduction otherwise allowed under	12023
division (A)(12)(a) of this section shall be reduced to the extent	12024
the reimbursement is attributable to an amount the taxpayer	12025
deducted under this section in any taxable year.	12026

(b) Add any amount not otherwise included in Ohio adjusted	12027
gross income for any taxable year to the extent that the amount is	12028
attributable to the recovery during the taxable year of any amount	12029
deducted or excluded in computing federal or Ohio adjusted gross	12030
income in any taxable year.	12031

(13) Deduct any portion of the deduction described in	12032
section 1341(a)(2) of the Internal Revenue Code, for repaying	12033
previously reported income received under a claim of right, that	12034
meets both of the following requirements:	12035

(a) It is allowable for repayment of an item that was	12036
included in the taxpayer's adjusted gross income for a prior	12037
taxable year and did not qualify for a credit under division (A)	12038
or (B) of section 5747.05 of the Revised Code for that year;	12039

(b) It does not otherwise reduce the taxpayer's adjusted	12040
gross income for the current or any other taxable year.	12041

(14) Deduct an amount equal to the deposits made to, and net	12042
investment earnings of, a medical savings account during the	12043
taxable year, in accordance with section 3924.66 of the Revised	12044
Code. The deduction allowed by division (A)(14) of this section	12045
does not apply to medical savings account deposits and earnings	12046
otherwise deducted or excluded for the current or any other	12047
taxable year from the taxpayer's federal adjusted gross income.	12048

(15)(a) Add an amount equal to the funds withdrawn from a	12049
medical savings account during the taxable year, and the net	12050
investment earnings on those funds, when the funds withdrawn were	12051
used for any purpose other than to reimburse an account holder	12052
for, or to pay, eligible medical expenses, in accordance with	12053
section 3924.66 of the Revised Code;	12054

(b) Add the amounts distributed from a medical savings	12055
account under division (A)(2) of section 3924.68 of the Revised	12056
Code during the taxable year.	12057

(16) Add any amount claimed as a credit under section	12058
5747.059 of the Revised Code to the extent that such amount	12059
satisfies either of the following:	12060

(a) The amount was deducted or excluded from the computation	12061
of the taxpayer's federal adjusted gross income as required to be	12062
reported for the taxpayer's taxable year under the Internal	12063
Revenue Code;	12064

(b) The amount resulted in a reduction of the taxpayer's	12065
federal adjusted gross income as required to be reported for any	12066
of the taxpayer's taxable years under the Internal Revenue Code.	12067

(17) Deduct the amount contributed by the taxpayer to an	12068
individual development account program established by a county	12069
department of job and family services pursuant to sections 329.11	12070
to 329.14 of the Revised Code for the purpose of matching funds	12071
deposited by program participants. On request of the tax	12072
commissioner, the taxpayer shall provide any information that, in	12073
the tax commissioner's opinion, is necessary to establish the	12074
amount deducted under division (A)(17) of this section.	12075

(18) Beginning in taxable year 2001, if the taxpayer is	12076
married and files a joint return and the combined federal adjusted	12077
gross income of the taxpayer and the taxpayer's spouse for the	12078
taxable year does not exceed one hundred thousand dollars, or if	12079
the taxpayer is single and has a federal adjusted gross income for	12080
the taxable year not exceeding fifty thousand dollars, deduct	12081
amounts paid during the taxable year for qualified tuition and	12082
fees paid to an eligible institution for the taxpayer, the	12083
taxpayer's spouse, or any dependent of the taxpayer, who is a	12084
resident of this state and is enrolled in or attending a program	12085
that culminates in a degree or diploma at an eligible institution.	12086
The deduction may be claimed only to the extent that qualified	12087
tuition and fees are not otherwise deducted or excluded for any	12088
taxable year from federal or Ohio adjusted gross income. The	12089
deduction may not be claimed for educational expenses for which	12090
the taxpayer claims a credit under section 5747.27 of the Revised	12091
Code.	12092

(19) Add any reimbursement received during the taxable year	12093
of any amount the taxpayer deducted under division (A)(18) of this	12094
section in any previous taxable year to the extent the amount is	12095
not otherwise included in Ohio adjusted gross income.	12096

(20)(a) Add five-sixths of the amount of depreciation	12097
expense allowed by subsection (k) of section 168 of the Internal	12098
Revenue Code, including the taxpayer's proportionate or	12099
distributive share of the amount of depreciation expense allowed	12100
by that subsection to a pass-through entity in which the taxpayer	12101
has a direct or indirect ownership interest. The tax	12102
commissioner, under procedures established by the commissioner,	12103
may waive the add-back related to a pass-through entity if the	12104
taxpayer owns, directly or indirectly, less than five per cent of	12105
the pass-through entity.	12106

(b) Nothing in division (A)(20) of this section shall be	12107
construed to adjust or modify the adjusted basis of any asset.	12108

(c) To the extent the add-back required under division	12109
(A)(20)(a) of this section is attributable to property generating	12110
nonbusiness income or loss allocated under section 5747.20 of the	12111
Revised Code, the add-back shall be sitused to the same location	12112
as the nonbusiness income or loss generated by the property for	12113
the purpose of determining the credit under division (A) of	12114
section 5747.05 of the Revised Code. Otherwise, the add-back	12115
shall be apportioned, subject to one or more of the four	12116
alternative methods of apportionment enumerated in section 5747.21	12117
of the Revised Code.	12118

(21)(a) If the taxpayer was required to add an amount under	12119
division (A)(20)(a) of this section for a taxable year, deduct	12120
one-fifth of the amount so added for each of the five succeeding	12121
taxable years.	12122

(b) If the amount deducted under division (A)(21)(a) of this	12123
section is attributable to an add-back allocated under division	12124
(A)(20)(c) of this section, the amount deducted shall be sitused	12125
to the same location. Otherwise, the add-back shall be	12126
apportioned using the apportionment factors for the taxable year	12127
in which the deduction is taken, subject to one or more of the	12128
four alternative methods of apportionment enumerated in section	12129
5747.21 of the Revised Code.	12130

(B) "Business income" means income, including gain or loss,	12131
arising from transactions, activities, and sources in the regular	12132
course of a trade or business and includes income, gain, or loss	12133
from real property, tangible property, and intangible property if	12134
the acquisition, rental, management, and disposition of the	12135
property constitute integral parts of the regular course of a	12136
trade or business operation. "Business income" includes income,	12137
including gain or loss, from a partial or complete liquidation of	12138
a business, including, but not limited to, gain or loss from the	12139
sale or other disposition of goodwill.	12140

(C) "Nonbusiness income" means all income other than	12141
business income and may include, but is not limited to,	12142
compensation, rents and royalties from real or tangible personal	12143
property, capital gains, interest, dividends and distributions,	12144
patent or copyright royalties, or lottery winnings, prizes, and	12145
awards.	12146

(D) "Compensation" means any form of remuneration paid to an	12147
employee for personal services.	12148

(E) "Fiduciary" means a guardian, trustee, executor,	12149
administrator, receiver, conservator, or any other person acting	12150
in any fiduciary capacity for any individual, trust, or estate.	12151

(F) "Fiscal year" means an accounting period of twelve	12152
months ending on the last day of any month other than December.	12153

(G) "Individual" means any natural person.

12154

(H) "Internal Revenue Code" means the "Internal Revenue Code	12155
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	12156

(I) "Resident" means any of the following, provided that	12157
division (I)(3) of this section applies only to taxable years of a	12158
trust beginning in 2002, 2003, or 2004:	12159

(1) An individual who is domiciled in this state, subject to	12160
section 5747.24 of the Revised Code;	12161

(2) The estate of a decedent who at the time of death was	12162
domiciled in this state. The domicile tests of section 5747.24 of	12163
the Revised Code and any election under section 5747.25 of the	12164
Revised Code are not controlling for purposes of division (I)(2)	12165
of this section.	12166

(3) Division (I)(3) of this section applies only to taxable	12167
years of a trust beginning in 2002, 2003, or 2004.	12168

A trust that, in whole or part, resides in this state. If	12169
only part of a trust resides in this state, the trust is a	12170
resident only with respect to that part. For	12171

For the purposes of division (I)(3) of this section, a:

12172

(a) A trust resides in this state for the trust's current	12173
taxable year to the extent, as described in division (I)(3)(d) of	12174
this section, that itthe trust consists, directly or indirectly,	12175
in whole or in part, of the net current value, adjusted for any	12176
profits, gains, or losses, of assets or, net of any related	12177
liabilities, that were transferred, or caused to be transferred,	12178
directly or indirectly, to the trust by any of the following:	12179

(a) The will(i) A person, a court, or a governmental	12180
entity or instrumentality on account of the death of a decedent	12181
who was domiciled in this state at the time of the decedent's	12182
death, but only if the trust is described in division (I)(3)(e)(i)	12183
or (ii) of this section;	12184

(b)(ii) A person who iswas domiciled in this state if the	12185
trust or part of the trust is not irrevocablefor the purposes of	12186
this chapter when the person directly or indirectly transferred	12187
assets to an irrevocable trust, but only if at least one of the	12188
trust's qualifying beneficiaries is domiciled in this state for	12189
the purposes of this chapter during all or some portion of the	12190
trust's current taxable year;	12191

(c)(iii) A person who was domiciled in this state for the	12192
purposes of this chapter when the trust document or instrument or	12193
part of the trust document or instrument became irrevocable, but	12194
only if, for all or some portion of the current taxable year of	12195
the trust, at least one beneficiary of the trust is a residentof	12196
the trust's qualifying beneficiaries is a resident domiciled in	12197
this state for the purposes of this chapter during all or some	12198
portion of the trust's current taxable year.	12199

For the purpose of divisions (I)(3)(b) and (c) of this	12200
section, the transfer of net assets to a(b) A trust is	12201
irrevocable to the extent that the transferor is not considered to	12202
be the owner of the net assets of the trust under sections 671 to	12203
678 of the Internal Revenue Code.	12204

(c) With respect to a trust other than a charitable lead	12205
trust, "qualifying beneficiary" has the same meaning as "potential	12206
current beneficiary" as defined in section 1361(e)(2) of the	12207
Internal Revenue Code, and with respect to a charitable lead trust	12208
"qualifying beneficiary" is any current, future, or contingent	12209
beneficiary, but with respect to any trust "qualifying	12210
beneficiary" excludes a person or a governmental entity or	12211
instrumentality to any of which a contribution would qualify for	12212
the charitable deduction under section 170 of the Internal Revenue	12213
Code.	12214

(d) For the purposes of division (I)(3)(a) of this section,	12215
the extent to which a trust consists directly or indirectly, in	12216
whole or in part, of assets, net of any related liabilities, that	12217
were transferred directly or indirectly, in whole or part, to the	12218
trust by any of the sources enumerated in that division shall be	12219
ascertained by multiplying the fair market value of the trust's	12220
assets, net of related liabilities, by the qualifying ratio, which	12221
shall be computed as follows:	12222

(i) The first time the trust receives assets, the numerator	12223
of the qualifying ratio is the fair market value of those assets	12224
at that time, net of any related liabilities, from sources	12225
enumerated in division (I)(3)(a) of this section. The denominator	12226
of the qualifying ratio is the fair market value of all the	12227
trust's assets at that time, net of any related liabilities.	12228

(ii) Each subsequent time the trust receives assets, a	12229
revised qualifying ratio shall be computed. The numerator of the	12230
revised qualifying ratio is the sum of (1) the fair market value	12231
of the trust's assets immediately prior to the subsequent	12232
transfer, net of any related liabilities, multiplied by the	12233
qualifying ratio last computed without regard to the subsequent	12234
transfer, and (2) the fair market value of the subsequently	12235
transferred assets at the time transferred, net of any related	12236
liabilities, from sources enumerated in division (I)(3)(a) of this	12237
section. The denominator of the revised qualifying ratio is the	12238
fair market value of all the trust's assets immediately after the	12239
subsequent transfer, net of any related liabilities.	12240

(e) For the purposes of division (I)(3)(a)(i) of this	12241
section:	12242

(i) A trust is described in division (I)(3)(e)(i) of this	12243
section if the trust is a testamentary trust and the testator of	12244
that testamentary trust was domiciled in this state at the time of	12245
the testator's death for purposes of the taxes levied under	12246
Chapter 5731. of the Revised Code.	12247

(ii) A trust is described in division (I)(3)(e)(ii) of this	12248
section if the transfer is a qualifying transfer described in any	12249
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	12250
irrevocable inter vivos trust, and at least one of the trust's	12251
qualifying beneficiaries is domiciled in this state for purposes	12252
of this chapter during all or some portion of the trust's current	12253
taxable year.	12254

(f) For the purposes of division (I)(3)(e)(ii) of this	12255
section, a "qualifying transfer" is a transfer of assets, net of	12256
any related liabilities, directly or indirectly to a trust, if the	12257
transfer is described in any of the following:	12258

(i) The transfer is made to a trust, created by the	12259
decedent before the decedent's death and while the decedent was	12260
domiciled in this state for the purposes of this chapter, and,	12261
prior to the death of the decedent, the trust became irrevocable	12262
while the decedent was domiciled in this state for the purposes of	12263
this chapter.	12264

(ii) The transfer is made to a trust to which the decedent,	12265
prior to the decedent's death, had directly or indirectly	12266
transferred assets, net of any related liabilities, while the	12267
decedent was domiciled in this state for the purposes of this	12268
chapter, and prior to the death of the decedent the trust became	12269
irrevocable while the decedent was domiciled in this state for the	12270
purposes of this chapter.	12271

(iii) The transfer is made on account of a contractual	12272
relationship existing directly or indirectly between the	12273
transferor and either the decedent or the estate of the decedent	12274
at any time prior to the date of the decedent's death, and the	12275
decedent was domiciled in this state at the time of death for	12276
purposes of the taxes levied under Chapter 5731. of the Revised	12277
Code.	12278

(iv) The transfer is made to a trust on account of a	12279
contractual relationship existing directly or indirectly between	12280
the transferor and another person who at the time of the	12281
decedent's death was domiciled in this state for purposes of this	12282
chapter.	12283

(v) The transfer is made to a trust on account of the will	12284
of a testator.	12285

(vi) The transfer is made to a trust created by or caused	12286
to be created by a court, and the trust was directly or indirectly	12287
created in connection with or as a result of the death of an	12288
individual who, for purposes of the taxes levied under Chapter	12289
5731. of the Revised Code, was domiciled in this state at the time	12290
of the individual’s death.	12291

(g) The tax commissioner may adopt rules to ascertain the	12292
part of a trust residing in this state under this division.	12293

(J) "Nonresident" means an individual or estate that is not	12294
a resident. An individual who is a resident for only part of a	12295
taxable year is a nonresident for the remainder of that taxable	12296
year.	12297

(K) "Pass-through entity" has the same meaning as in section	12298
5733.04 of the Revised Code.	12299

(L) "Return" means the notifications and reports required to	12300
be filed pursuant to this chapter for the purpose of reporting the	12301
tax due and includes declarations of estimated tax when so	12302
required.	12303

(M) "Taxable year" means the calendar year or the taxpayer's	12304
fiscal year ending during the calendar year, or fractional part	12305
thereof, upon which the adjusted gross income is calculated	12306
pursuant to this chapter.	12307

(N) "Taxpayer" means any person subject to the tax imposed	12308
by section 5747.02 of the Revised Code or any pass-through entity	12309
that makes the election under division (D) of section 5747.08 of	12310
the Revised Code.	12311

(O) "Dependents" means dependents as defined in the Internal	12312
Revenue Code and as claimed in the taxpayer's federal income tax	12313
return for the taxable year or which the taxpayer would have been	12314
permitted to claim had the taxpayer filed a federal income tax	12315
return.	12316

(P) "Principal county of employment" means, in the case of a	12317
nonresident, the county within the state in which a taxpayer	12318
performs services for an employer or, if those services are	12319
performed in more than one county, the county in which the major	12320
portion of the services are performed.	12321

(Q) As used in sections 5747.50 to 5747.55 of the Revised	12322
Code:	12323

(1) "Subdivision" means any county, municipal corporation,	12324
park district, or township.	12325

(2) "Essential local government purposes" includes all	12326
functions that any subdivision is required by general law to	12327
exercise, including like functions that are exercised under a	12328
charter adopted pursuant to the Ohio Constitution.	12329

(R) "Overpayment" means any amount already paid that exceeds	12330
the figure determined to be the correct amount of the tax.	12331

(S) "Taxable income" or "Ohio taxable income" applies only	12332
to estates and trusts, and means federal taxable income, as	12333
defined and used in the Internal Revenue Code, adjusted as	12334
follows:	12335

(1) Add interest or dividends, net of ordinary, necessary,	12336
and reasonable expenses not deducted in computing federal taxable	12337
income, on obligations or securities of any state or of any	12338
political subdivision or authority of any state, other than this	12339
state and its subdivisions and authorities;, but only to the	12340
extent that such net amount is not otherwise includible in Ohio	12341
taxable income and is described in either division (S)(1)(a) or	12342
(b) of this section:	12343

(a) The net amount is not attributable to the S portion of	12344
an electing small business trust and has not been distributed to	12345
beneficiaries for the taxable year;	12346

(b) The net amount is attributable to the S portion of an	12347
electing small business trust for the taxable year.	12348

(2) Add interest or dividends, net of ordinary, necessary,	12349
and reasonable expenses not deducted in computing federal taxable	12350
income, on obligations of any authority, commission,	12351
instrumentality, territory, or possession of the United States to	12352
the extent that the interest or dividends are exempt from federal	12353
income taxes but not from state income taxes, but only to the	12354
extent that such net amount is not otherwise includible in Ohio	12355
taxable income and is described in either division (S)(1)(a) or	12356
(b) of this section;	12357

(3) Add the amount of personal exemption allowed to the	12358
estate pursuant to section 642(b) of the Internal Revenue Code;	12359

(4) Deduct interest or dividends, net of related expenses	12360
deducted in computing federal taxable income, on obligations of	12361
the United States and its territories and possessions or of any	12362
authority, commission, or instrumentality of the United States to	12363
the extent that the interest or dividends are exempt from state	12364
taxes under the laws of the United States, but only to the extent	12365
that such amount is included in federal taxable income and is	12366
described in either division (S)(1)(a) or (b) of this section;	12367

(5) Deduct the amount of wages and salaries, if any, not	12368
otherwise allowable as a deduction but that would have been	12369
allowable as a deduction in computing federal taxable income for	12370
the taxable year, had the targeted jobs credit allowed under	12371
sections 38, 51, and 52 of the Internal Revenue Code not been in	12372
effect, but only to the extent such amount relates either to	12373
income included in federal taxable income for the taxable year or	12374
to income of the S portion of an electing small business trust for	12375
the taxable year;	12376

(6) Deduct any interest or interest equivalent, net of	12377
related expenses deducted in computing federal taxable income, on	12378
public obligations and purchase obligations, but only to the	12379
extent that such net amount relates either to income included in	12380
federal taxable income for the taxable year or to income of the S	12381
portion of an electing small business trust for the taxable year;	12382

(7) Add any loss or deduct any gain resulting from sale,	12383
exchange, or other disposition of public obligations to the extent	12384
that such loss has been deducted or such gain has been included in	12385
computing either federal taxable income or income of the S portion	12386
of an electing small business trust for the taxable year;	12387

(8) Except in the case of the final return of an estate, add	12388
any amount deducted by the taxpayer on both its Ohio estate tax	12389
return pursuant to section 5731.14 of the Revised Code, and on its	12390
federal income tax return in determining either federal adjusted	12391
gross income or federal taxable income;	12392

(9)(a) Deduct any amount included in federal taxable income	12393
solely because the amount represents a reimbursement or refund of	12394
expenses that in a previous year the decedent had deducted as an	12395
itemized deduction pursuant to section 63 of the Internal Revenue	12396
Code and applicable treasury regulations. The deduction otherwise	12397
allowed under division (S)(9)(a) of this section shall be reduced	12398
to the extent the reimbursement is attributable to an amount the	12399
taxpayer or decedent deducted under this section in any taxable	12400
year.	12401

(b) Add any amount not otherwise included in Ohio taxable	12402
income for any taxable year to the extent that the amount is	12403
attributable to the recovery during the taxable year of any amount	12404
deducted or excluded in computing federal or Ohio taxable income	12405
in any taxable year, but only to the extent such amount has not	12406
been distributed to beneficiaries for the taxable year.	12407

(10) Deduct any portion of the deduction described in	12408
section 1341(a)(2) of the Internal Revenue Code, for repaying	12409
previously reported income received under a claim of right, that	12410
meets both of the following requirements:	12411

(a) It is allowable for repayment of an item that was	12412
included in the taxpayer's taxable income or the decedent's	12413
adjusted gross income for a prior taxable year and did not qualify	12414
for a credit under division (A) or (B) of section 5747.05 of the	12415
Revised Code for that year.	12416

(b) It does not otherwise reduce the taxpayer's taxable	12417
income or the decedent's adjusted gross income for the current or	12418
any other taxable year.	12419

(11) Add any amount claimed as a credit under section	12420
5747.059 of the Revised Code to the extent that the amount	12421
satisfies either of the following:	12422

(a) The amount was deducted or excluded from the computation	12423
of the taxpayer's federal taxable income as required to be	12424
reported for the taxpayer's taxable year under the Internal	12425
Revenue Code;	12426

(b) The amount resulted in a reduction in the taxpayer's	12427
federal taxable income as required to be reported for any of the	12428
taxpayer's taxable years under the Internal Revenue Code.	12429

(12) Deduct any amount, net of related expenses deducted in	12430
computing federal taxable income, that a trust is required to	12431
report as farm income on its federal income tax return, but only	12432
if the assets of the trust include at least ten acres of land	12433
satisfying the definition of "land devoted exclusively to	12434
agricultural use" under section 5713.30 of the Revised Code,	12435
regardless of whether the land is valued for tax purposes as such	12436
land under sections 5713.30 to 5713.38 of the Revised Code. If the	12437
trust is a pass-though entity investor, section 5747.231 of the	12438
Revised Code applies in ascertaining if the trust is eligible to	12439
claim the deduction provided by division (S)(12) of this section	12440
in connection with the pass-through entity's farm income.	12441

Except for farm income attributable to the S portion of an	12442
electing small business trust, the deduction provided by division	12443
(S)(12) of this section is allowed only to the extent that the	12444
trust has not distributed such farm income. Division (S)(12) of	12445
this section applies only to taxable years of a trust beginning	12446
in 2002, 2003, or 2004.	12447

(13) Add the net amount of income described in section 641(c)	12448
of the Internal Revenue Code to the extent that amount is not	12449
included in federal taxable income.	12450

(14) Add or deduct the amount the taxpayer would be required	12451
to add or deduct under division (A)(20) or (21) of this section if	12452
the taxpayer's Ohio taxable income were computed in the same	12453
manner as an individual's Ohio adjusted gross income is computed	12454
under this section. In the case of a trust, division (S)(14) of	12455
this section applies only to any of the trust's taxable years	12456
beginning in 2002, 2003, or 2004.	12457

(T) "School district income" and "school district income	12458
tax" have the same meanings as in section 5748.01 of the Revised	12459
Code.	12460

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	12461
of this section, "public obligations," "purchase obligations," and	12462
"interest or interest equivalent" have the same meanings as in	12463
section 5709.76 of the Revised Code.	12464

(V) "Limited liability company" means any limited liability	12465
company formed under Chapter 1705. of the Revised Code or under	12466
the laws of any other state.	12467

(W) "Pass-through entity investor" means any person who,	12468
during any portion of a taxable year of a pass-through entity, is	12469
a partner, member, shareholder, or equity investor in that	12470
pass-through entity.	12471

(X) "Banking day" has the same meaning as in section 1304.01	12472
of the Revised Code.	12473

(Y) "Month" means a calendar month.

12474

(Z) "Quarter" means the first three months, the second three	12475
months, the third three months, or the last three months of the	12476
taxpayer's taxable year.	12477

(AA)(1) "Eligible institution" means a state university or	12478
state institution of higher education as defined in section	12479
3345.011 of the Revised Code, or a private, nonprofit college,	12480
university, or other post-secondary institution located in this	12481
state that possesses a certificate of authorization issued by the	12482
Ohio board of regents pursuant to Chapter 1713. of the Revised	12483
Code or a certificate of registration issued by the state board of	12484
proprietary school registration under Chapter 3332. of the Revised	12485
Code.	12486

(2) "Qualified tuition and fees" means tuition and fees	12487
imposed by an eligible institution as a condition of enrollment or	12488
attendance, not exceeding two thousand five hundred dollars in	12489
each of the individual's first two years of post-secondary	12490
education. If the individual is a part-time student, "qualified	12491
tuition and fees" includes tuition and fees paid for the academic	12492
equivalent of the first two years of post-secondary education	12493
during a maximum of five taxable years, not exceeding a total of	12494
five thousand dollars. "Qualified tuition and fees" does not	12495
include:	12496

(a) Expenses for any course or activity involving sports,	12497
games, or hobbies unless the course or activity is part of the	12498
individual's degree or diploma program;	12499

(b) The cost of books, room and board, student activity	12500
fees, athletic fees, insurance expenses, or other expenses	12501
unrelated to the individual's academic course of instruction;	12502

(c) Tuition, fees, or other expenses paid or reimbursed	12503
through an employer, scholarship, grant in aid, or other	12504
educational benefit program.	12505

(BB)(1) "Modified business income" means the business income	12506
included in a trust's Ohio taxable income after such taxable	12507
income is first reduced by the qualifying trust amount, if any.	12508

(2) "Qualifying trust amount" of a trust means capital gains	12509
and losses from the sale, exchange, or other disposition of equity	12510
or ownership interestinterests in, or debt obligations of, a	12511
qualifying investee to the extent included in the trust's Ohio	12512
taxable income, but only if the location of the physical assets	12513
following requirements are satisfied:	12514

(a) The book value of the qualifying investeeinvestee's	12515
physical assets in this state and everywhere, as of the last day	12516
of the qualifying investee's fiscal or calendar year ending	12517
immediately prior to the date on which the trust recognizes the	12518
gain or loss, is available to the trust.	12519

(b) The requirements of section 5747.011 of the Revised Code	12520
are satisfied for the trust's taxable year in which the trust	12521
recognizes the gain or loss.	12522

Any gain or loss that is not a qualifying trust amount is	12523
modified business income, qualifying investment income, or	12524
modified nonbusiness income, as the case may be.	12525

(3) "Modified nonbusiness income" means a trust's Ohio	12526
taxable income other than modified business income and, other than	12527
the qualifying trust amount, and other than qualifying investment	12528
income, as defined in section 5747.012 of the Revised Code, to the	12529
extent such qualifying investment income is not otherwise part of	12530
modified business income.	12531

(4) "Modified Ohio taxable income" applies only to trusts,	12532
and means the sum of the followingamounts described in divisions	12533
(BB)(4)(a) to (c) of this section:	12534

(a) Modified business income multiplied by theThe fraction,	12535
calculated under division (B)(2) of section 5733.05, and applying	12536
section 5733.057 of the Revised Code, as if the trust were a	12537
corporation subject to the tax imposed by section 5733.06 of the	12538
Revised Code;, multiplied by the sum of the following amounts:	12539

(i) The trust's modified business income;

12540

(ii) The trust's qualifying investment income, as defined	12541
in section 5747.012 of the Revised Code, but only to the extent	12542
the qualifying investment income does not otherwise constitute	12543
modified business income and does not otherwise constitute a	12544
qualifying trust amount.	12545

(b) The qualifying trust amount multiplied by the ratioa	12546
fraction, the numerator of which is the sum of the book value of	12547
the qualifying investee's physical assets in this state of the	12548
qualifying investee toon the last day of the qualifying	12549
investee's fiscal or calendar year ending immediately prior to the	12550
day on which the trust recognizes the qualifying trust amount, and	12551
the denominator of which is the sum of the book value of the	12552
qualifying investee's total physical assets everywhere of the	12553
qualifying investeeon the last day of the qualifying investee's	12554
fiscal or calendar year ending immediately prior to the day on	12555
which the trust recognizes the qualifying trust amount. If, for a	12556
taxable year, the trust recognizes a qualifying trust amount with	12557
respect to more than one qualifying investee, the amount described	12558
in division (BB)(4)(b) of this section shall equal the sum of the	12559
products so computed for each such qualifying investee.	12560

(c) Modified nonbusiness income to the extent produced by	12561
assets held by a trust or portion of a trust that is a resident	12562
for the purposes of this chapter(i) With respect to a trust or	12563
portion of a trust that is a resident as ascertained in accordance	12564
with division (I)(3)(d) of this section, its modified nonbusiness	12565
income.	12566

(ii) With respect to a trust or portion of a trust that is	12567
not a resident as ascertained in accordance with division	12568
(I)(3)(d) of this section, the amount of its modified nonbusiness	12569
income satisfying the descriptions in divisions (B)(2) to (5) of	12570
section 5747.20 of the Revised Code.	12571

If the allocation and apportionment of a trust's income under	12572
divisions (BB)(4)(a) and (c) of this section do not fairly	12573
represent the modified Ohio taxable income of the trust in this	12574
state, the alternative methods described in division (C) of	12575
section 5747.21 of the Revised Code may be applied in the manner	12576
and to the same extent provided in that section.	12577

(5) "Qualifying(a) Except as set forth in division	12578
(BB)(5)(b) of this section, "qualifying investee" means a person	12579
in which a trust has an equity or ownership interest, or a person	12580
or unit of government the debt obligations of either of which are	12581
owned by a trust. For the purposes of division (BB)(2)(a) of this	12582
section and for the purpose of computing the fraction described in	12583
division (BB)(4)(b) of this section, all of the following apply:	12584

(i) If the qualifying investee is a member of a qualifying	12585
controlled group on the last day of the qualifying investee's	12586
fiscal or calendar year ending immediately prior to the date on	12587
which the trust recognizes the gain or loss, then "qualifying	12588
investee" includes all persons in the qualifying controlled group	12589
on such last day.	12590

(ii) If the qualifying investee, or if the qualifying	12591
investee and any members of the qualifying controlled group of	12592
which the qualifying investee is a member on the last day of the	12593
qualifying investee's fiscal or calendar year ending immediately	12594
prior to the date on which the trust recognizes the gain or loss,	12595
separately or cumulatively own, directly or indirectly, on the	12596
last day of the qualifying investee's fiscal or calendar year	12597
ending immediately prior to the date on which the trust recognizes	12598
the qualifying trust amount, more than fifty per cent of the	12599
equity of a pass-through entity, then the qualifying investee and	12600
the other members are deemed to own the proportionate share of the	12601
pass-through entity's physical assets which the pass-through	12602
entity directly or indirectly owns on the last day of the	12603
pass-through entity's calendar or fiscal year ending within or	12604
with the last day of the qualifying investee's fiscal or calendar	12605
year ending immediately prior to the date on which the trust	12606
recognizes the qualifying trust amount.	12607

(iii) For the purposes of division (BB)(5)(a)(iii) of this	12608
section, "upper level pass-through entity" means a pass-through	12609
entity directly or indirectly owning any equity of another	12610
pass-through entity, and "lower level pass-through entity" means	12611
that other pass-through entity.	12612

An upper level pass-through entity, whether or not it is	12613
also a qualifying investee, is deemed to own, on the last day of	12614
the upper level pass-through entity's calendar or fiscal year, the	12615
proportionate share of the lower level pass-through entity's	12616
physical assets that the lower level pass-through entity directly	12617
or indirectly owns on the last day of the lower level pass-through	12618
entity's calendar or fiscal year ending within or with the last	12619
day of the upper level pass-through entity's fiscal or calendar	12620
year. If the upper level pass-through entity directly and	12621
indirectly owns less than fifty per cent of the equity of the	12622
lower level pass-through entity on each day of the upper level	12623
pass-through entity's calendar or fiscal year in which or with	12624
which ends the calendar or fiscal year of the lower level	12625
pass-through entity and if, based upon clear and convincing	12626
evidence, complete information about the location and cost of the	12627
physical assets of the lower pass-through entity is not available	12628
to the upper level pass-through entity, then solely for purposes	12629
of ascertaining if a gain or loss constitutes a qualifying trust	12630
amount, the upper level pass-through entity shall be deemed as	12631
owning no equity of the lower level pass-through entity for each	12632
day during the upper level pass-through entity's calendar or	12633
fiscal year in which or with which ends the lower level	12634
pass-through entity's calendar or fiscal year. Nothing in	12635
division (BB)(5)(a)(iii) of this section shall be construed to	12636
provide for any deduction or exclusion in computing any trust's	12637
Ohio taxable income.	12638

(b) With respect to a trust that is not a resident for the	12639
taxable year and with respect to a part of a trust that is not a	12640
resident for the taxable year, "qualifying investee" for that	12641
taxable year does not include a C corporation if both of the	12642
following apply:	12643

(i) During the taxable year the trust or part of the trust	12644
recognizes a gain or loss from the sale, exchange, or other	12645
disposition of equity or ownership interests in, or debt	12646
obligations of, the C corporation.	12647

(ii) Such gain or loss constitutes nonbusiness income.

12648

(6) "Available" means information is such that a person	12649
is able to learn of the information by the due date plus	12650
extensions, if any, for filing the return for the taxable year in	12651
which the trust recognizes the gain or loss.	12652

(CC) "Qualifying controlled group" has the same meaning as	12653
in section 5733.04 of the Revised Code.	12654

(DD) "Related member" has the same meaning as in section	12655
5733.042 of the Revised Code.	12656

(CC)(EE) Any term used in this chapter that is not otherwise	12657
defined in this section and that is not used in a comparable	12658
context in the Internal Revenue Code and other statutes of the	12659
United States relating to federal income taxes has the same	12660
meaning as in section 5733.40 of the Revised Code.	12661

Sec. 5747.011. (A) As used in this section:

12662

(1) "Qualifying closely-held C corporation" means a person	12663
classified for federal income tax purposes as an association taxed	12664
as a corporation and that has more than fifty per cent of the	12665
value of its outstanding stock or equity owned, directly or	12666
indirectly, by or for not more than five qualifying persons. For	12667
the purposes of this division, the ownership of stock shall be	12668
determined under the rules set forth in section 544 of the	12669
Internal Revenue Code.	12670

(2) "Qualifying person" means an individual; an	12671
organization described in section 401(a), 501(c)(17), or 509(a) of	12672
the Internal Revenue Code; or a portion of a trust permanently set	12673
aside or to be used exclusively for the purposes described in	12674
section 642(c) of the Internal Revenue Code or a corresponding	12675
provision of a prior federal income tax law.	12676

(3) "Qualifying limited liability company" means a limited	12677
liability company that is not classified for federal income tax	12678
purposes as an association taxed as a corporation.	12679

(4) "Ownership interest" means the equity or ownership	12680
interest in, or debt obligation of, a "qualifying investee" as	12681
defined in section 5747.01 of the Revised Code.	12682

(5) "Qualifying individual beneficiary" has the same	12683
meaning as qualifying beneficiary as used in division (I)(3)(c) of	12684
section 5747.01 of the Revised Code, but is limited to	12685
individuals.	12686

(6) "Family" of an individual means only the individual's	12687
spouse; the individual's ancestors, limited to the individual's	12688
parents, grandparents, and great grandparents; the siblings of	12689
such ancestors, whether by the whole or half blood or by legal	12690
adoption; the lineal descendants of such ancestors and siblings;	12691
persons legally adopted by such ancestors or by such siblings; and	12692
the spouses of such ancestors, siblings, legally adopted persons,	12693
and lineal descendants.	12694

(B) The requirements of this division apply for purposes of	12695
division (BB)(2)(b) of section 5747.01 of the Revised Code and for	12696
the purposes of division (D) of section 5747.012 of the Revised	12697
Code. Gain or loss included in a trust's Ohio taxable income is	12698
not a qualifying trust amount unless the trust's ownership	12699
interest in the qualifying investee is at least five per cent of	12700
the total outstanding ownership interests in such qualifying	12701
investee at any time during the ten-year period ending on the last	12702
day of the trust's taxable year in which the sale, exchange, or	12703
other disposition occurs. Nothing in this section negates the	12704
requirements in division (BB)(2) of section 5747.01 of the Revised	12705
Code.	12706

For the purpose of ascertaining whether the trust's	12707
ownership interest in a qualifying investee is at least five per	12708
cent of the total outstanding ownership interests in such	12709
qualifying investee, the following apply:	12710

(1) On each day, an ownership interest owned, directly or	12711
indirectly, by or for a qualifying closely-held C corporation, an	12712
S corporation, a partnership other than a publicly traded	12713
partnership, a qualifying limited liability company, an estate, or	12714
a trust that is irrevocable as defined in division (I)(3)(b) of	12715
section 5747.01 of the Revised Code is considered as being owned	12716
proportionately on the same day by the equity investors of such	12717
qualifying closely-held C corporation, S corporation, partnership,	12718
or qualifying limited liability company, or by the beneficiaries	12719
of such estate or trust, as the case may be. For the purposes of	12720
division (B)(1) of this section, a beneficiary's proportionate	12721
share of an ownership interest held by a trust shall be	12722
ascertained in accordance with section 544(a)(1) of the Internal	12723
Revenue Code.	12724

(2) On each day, a trust, hereinafter referred to as the	12725
first trust, is considered as owning any ownership interest owned,	12726
directly or indirectly, by or for another trust, hereinafter	12727
referred to as the second trust, if on the same day the second	12728
trust has at least one individual trustee who is either (a) a	12729
trustee of the first trust, or (b) a member of a family that	12730
includes at least one of the trustees of the first trust.	12731

(3) On each day, a trust, hereinafter referred to as the	12732
first trust, is considered as owning any ownership interest owned,	12733
directly or indirectly, by or for another trust, hereinafter	12734
referred to as the second trust, if on the same day the second	12735
trust has at least one qualifying individual beneficiary who is	12736
either (a) a qualifying individual beneficiary of the first trust	12737
or (b) a member of a family which includes a qualifying	12738
individual beneficiary of the first trust.	12739

(4) An ownership interest constructively owned by a person	12740
by reason of the application of division (B)(1) of this section	12741
shall, for the purpose of applying divisions (B)(1) to (3) of this	12742
section, be treated as actually owned by that person.	12743

(5) An ownership interest constructively owned by a trust	12744
by reason of the application of division (B)(2) or (3) of this	12745
section shall not be treated as actually owned by that trust for	12746
purposes of applying divisions (B)(1) to (3) of this section.	12747

(6) If an ownership interest may be considered as owned by	12748
a trust under division (B)(1) or (2) of this section, the	12749
ownership interest shall be considered owned by that trust under	12750
division (B)(2) of this section.	12751

(7) If an ownership interest may be considered as owned by	12752
a trust under division (B)(1) or (3) of this section, the	12753
ownership interest shall be considered owned by that trust under	12754
division (B)(3) of this section.	12755

Sec. 5747.012. This section applies for the purposes of	12756
divisions (BB)(3) and (BB)(4)(a)(ii) of section 5747.01 of the	12757
Revised Code.	12758

(A) As used in this section:

12759

(1)(a) Except as set forth in division (A)(1)(b) of this	12760
section, "qualifying investment income" means the portion of a	12761
qualifying investment pass-through entity's net income	12762
attributable to transaction fees in connection with the	12763
acquisition, ownership, or disposition of intangible property;	12764
loan fees; financing fees; consent fees; waiver fees; application	12765
fees; net management fees; dividend income; interest income; net	12766
capital gains from the sale or exchange or other disposition of	12767
intangible property; and all types and classifications of income	12768
attributable to distributive shares of income from other	12769
pass-through entities.	12770

(b)(i) Notwithstanding division (A)(1)(a) of this section,	12771
"qualifying investment income" does not include any part of the	12772
qualifying investment pass-through entity's net capital gain	12773
which, after the application of section 5747.231 of the Revised	12774
Code with respect to a trust, would also constitute a qualifying	12775
trust amount.	12776

(ii) Notwithstanding division (A)(1)(a) of this section,	12777
"qualifying investment income" does not include any part of the	12778
qualifying investment pass-through entity's net income	12779
attributable to the portion of a distributive share of income	12780
directly or indirectly from another pass-through entity to the	12781
extent such portion constitutes the other pass-through entity's	12782
net capital gain which, after the application of section 5747.231	12783
of the Revised Code with respect to a trust, would also constitute	12784
a qualifying trust amount.	12785

(2) "Qualifying investment pass-through entity" means an	12786
investment pass-through entity, as defined in section 5733.401 of	12787
the Revised Code, subject to the following qualifications:	12788

(a) "Forty per cent" shall be substituted for "ninety per	12789
cent" wherever "ninety per cent" appears in section 5733.401 of	12790
the Revised Code.	12791

(b) The pass-through entity must have been formed or	12792
organized prior to June 5, 2002.	12793

(c) The qualifying section 5747.012 trust or related	12794
persons to the qualifying section 5747.012 trust must directly or	12795
indirectly own at least five per cent of the equity of the	12796
investment pass-through entity each day of the entity's fiscal or	12797
calendar year ending within or with the last day of the qualifying	12798
section 5747.012 trust's taxable year;	12799

(d) During the investment pass-through entity's calendar or	12800
fiscal year ending within or with the last day of the qualifying	12801
section 5747.012 trust's taxable year, related persons of or to	12802
the qualifying section 5747.012 trust must, on each day of the	12803
investment pass-through entity's year, own directly, or own	12804
through equity investments in other pass-through entities, more	12805
than sixty per cent of the equity of the investment pass-through	12806
entity.	12807

(B) "Qualifying section 5747.012 trust" means a trust	12808
satisfying one of the following:	12809

(1) The trust was created prior to, and was irrevocable on,	12810
June 5, 2002; or	12811

(2) If the trust was created after June 4, 2002, or if	12812
the trust became irrevocable after June 4, 2002, then at least	12813
eighty per cent of the assets transferred to the trust must have	12814
been previously owned by related persons to the trust or by a	12815
trust created prior to June 5, 2002, under which the creator did	12816
not retain the power to change beneficiaries, amend the trust, or	12817
revoke the trust. For purposes of division (B)(2) of this	12818
section, the power to substitute property of equal value shall not	12819
be considered to be a power to change beneficiaries, amend the	12820
trust, or revoke the trust.	12821

(C) For the purposes of this section, "related persons"	12822
means the family of a qualifying individual beneficiary, as	12823
defined in division (A)(5) of section 5747.011 of the Revised	12824
Code. For the purposes of this division, "family" has the same	12825
meaning as in division (A)(6) of section 5747.011 of the Revised	12826
Code.	12827

(D) For the purposes of applying divisions (A)(2)(c),	12828
(A)(2)(d), and (B)(2) of this section, the related persons or the	12829
qualifying section 5747.012 trust, as the case may be, shall be	12830
deemed to own the equity of the investment pass-through entity	12831
after the application of division (B) of section 5747.011 of the	12832
Revised Code.	12833

(E) "Irrevocable" has the same meaning as in division	12834
(I)(3)(b) of section 5747.01 of the Revised Code.	12835

(F) Nothing in this section requires any item of income,	12836
gain, or loss not satisfying the definition of qualifying	12837
investment income to be treated as modified nonbusiness income.	12838
Any item of income, gain, or loss that is not qualifying	12839
investment income is modified business income, modified	12840
nonbusiness income, or a qualifying trust amount, as the case may	12841
be.	12842

Sec. 5747.02.  (A) For the purpose of providing revenue for	12843
the support of schools and local government functions, to provide	12844
relief to property taxpayers, to provide revenue for the general	12845
revenue fund, and to meet the expenses of administering the tax	12846
levied by this chapter, there is hereby levied on every	12847
individual, trust, and estate residing in or earning or receiving	12848
income in this state, on every individual, trust, and estate	12849
earning or receiving lottery winnings, prizes, or awards pursuant	12850
to Chapter 3770. of the Revised Code, and on every individual,	12851
trust, and estate otherwise having nexus with or in this state	12852
under the Constitution of the United States, an annual tax	12853
measured in the case of individuals by Ohio adjusted gross income	12854
less an exemption for the taxpayer, the taxpayer's spouse, and	12855
each dependent as provided in section 5747.025 of the Revised	12856
Code; measured in the case of trusts by modified Ohio taxable	12857
income under division (D) of this section; and measured in the	12858
case of estates by Ohio taxable income. The tax imposed by this	12859
section on the balance thus obtained is hereby levied as follows:	12860

In July of each year, beginning in 2005, the tax commissioner	12876
shall adjust the income amounts prescribed in this division by	12877
multiplying the percentage increase in the gross domestic product	12878
deflator computed that year under section 5747.025 of the Revised	12879
Code by each of the income amounts resulting from the adjustment	12880
under this division in the preceding year, adding the resulting	12881
product to the corresponding income amount resulting from the	12882
adjustment in the preceding year, and rounding the resulting sum	12883
to the nearest multiple of fifty dollars. The tax commissioner	12884
also shall recompute each of the tax dollar amounts to the extent	12885
necessary to reflect the adjustment of the income amounts. The	12886
rates of taxation shall not be adjusted.	12887

The adjusted amounts apply to taxable years beginning in the	12888
calendar year in which the adjustments are made. The tax	12889
commissioner shall not make such adjustments in any year in which	12890
the amount resulting from the adjustment would be less than the	12891
amount resulting from the adjustment in the preceding year.	12892

(B) If the director of budget and management makes a	12893
certification to the tax commissioner under division (B) of	12894
section 131.44 of the Revised Code, the amount of tax as	12895
determined under division (A) of this section shall be reduced by	12896
the percentage prescribed in that certification for taxable years	12897
beginning in the calendar year in which that certification is	12898
made.	12899

(C) The levy of this tax on income does not prevent a	12900
municipal corporation, a joint economic development zone created	12901
under section 715.691, or a joint economic development district	12902
created under section 715.70 or 715.71 or sections 715.72 to	12903
715.81 of the Revised Code from levying a tax on income.	12904

(D) Division (D) of this sectionThis division applies only	12905
to taxable years of a trust beginning in 2002, 2003, or 2004.	12906

(1) The tax imposed by this section on a trust shall be	12907
computed by multiplying the Ohio modified taxable income of the	12908
trust by the rates prescribed by division (A) of this section.	12909

(2) A credit is allowed against the tax computed under	12910
division (D) of this section equal to the lesser of (1) the tax	12911
paid to another state or the District of Columbia on the trust's	12912
modified nonbusiness income of a trust, other than the portion of	12913
the trust's nonbusiness income that is qualifying investment	12914
income as defined in section 5747.012 of the Revised Code, or (2)	12915
the effective tax rate, based on modified Ohio taxable income,	12916
multiplied by the trust's modified nonbusiness income of the trust	12917
other than the portion of trust's nonbusiness income that is	12918
qualifying investment income. The credit applies before any other	12919
applicable credits. The	12920

(3) The credits enumerated in divisions (A)(1) to (13) of	12921
section 5747.98 of the Revised Code do not apply to a trust	12922
subject to this division. Any credits enumerated in other	12923
divisions of section 5747.98 of the Revised Code apply to a trust	12924
subject to this division. To the extent that the trust	12925
distributes income for the taxable year for which a credit is	12926
available to the trust, the credit shall be shared by the trust	12927
and its beneficiaries. The tax commissioner and the trust shall	12928
be guided by applicable regulations of the United States treasury	12929
regarding the sharing of credits.	12930

(E) For the purposes of this section, "trust" means any	12931
trust described in Subchapter J of Chapter 1 of the Internal	12932
Revenue Code, excluding a trusttrusts that are not irrevocable as	12933
defined in division (I)(3)(b) of section 5747.01 of the Revised	12934
Code and that have no modified Ohio taxable income for the taxable	12935
year, charitable remainder trusts, qualified funeral trusts,	12936
endowment and perpetual care trusts, qualified settlement trusts	12937
and funds, designated settlement trusts and funds, and trusts	12938
exempted from taxation under section 501(c)(3)(a) of the Internal	12939
Revenue Code.	12940

Sec. 5747.231. As used in this section, "adjusted qualifying	12941
amount" has the same meaning as in section 5733.40 of the Revised	12942
Code.	12943

This section does not apply to division (BB)(5)(a)(ii) of	12944
section 5747.01 of the Revised Code.	12945

Except as set forth in this section and except as otherwise	12946
provided in divisions (A) and (B) of section 5733.401 of the	12947
Revised Code, in making all apportionment, allocation, income,	12948
gain, loss, deduction, tax, and credit computations under this	12949
chapter, each person shall include in that person's items of	12950
business income, nonbusiness income, adjusted qualifying amounts,	12951
allocable income or loss, apportionable income or loss, property,	12952
compensation, and sales, the person's entire distributive share or	12953
proportionate share of the items of business income, nonbusiness	12954
income, adjusted qualifying amounts, allocable income or loss,	12955
apportionable income or loss, property, compensation, and sales of	12956
any pass-through entity in which the person has a direct or	12957
indirect ownership interest at any time during the person's	12958
taxable year. A pass-through entity's direct or indirect	12959
distributive share or proportionate share of any other	12960
pass-through entity's items of business income, nonbusiness	12961
income, adjusted qualifying amounts, allocable income or loss,	12962
apportionable income or loss, property, compensation, and sales	12963
shall be included for the purposes of computing the person's	12964
distributive share or proportionate share of the pass-through	12965
entity's items of business income, nonbusiness income, adjusted	12966
qualifying amounts, allocable income or loss, apportionable income	12967
or loss, property, compensation, and sales under this section.	12968
Those items shall be in the same form as was recognized by the	12969
pass-through entity.	12970

Sec. 5902.02.  The duties of the director of the governor's	12971
office of veterans affairs shall include the following:	12972

(A) Furnishing the veterans service commissions of all	12973
counties of the state copies of the state laws, rules, and	12974
legislation relating to the operation of the commissions and their	12975
offices;	12976

(B) Upon application, assisting the general public in	12977
obtaining records of vital statistics pertaining to veterans or	12978
their dependents;	12979

(C) Adopting rules pursuant to Chapter 119. of the Revised	12980
Code pertaining to minimum qualifications for hiring, certifying,	12981
and accrediting county veterans service officers and pertaining to	12982
their required duties;	12983

(D) Adopting rules pursuant to Chapter 119. of the Revised	12984
Code for the education, training, certification, and duties of	12985
veterans service commissioners;	12986

(E) Developing and monitoring programs and agreements	12987
enhancing employment and training for veterans in single or	12988
multiple county areas;	12989

(F) Developing and monitoring programs and agreements to	12990
enable county veterans service commissions to address	12991
homelessness, indigency, and other veteran-related issues	12992
individually or jointly;	12993

(G) Developing and monitoring programs and agreements to	12994
enable state agencies, individually or jointly, that provide	12995
services to veterans, including the Ohio veterans' homehomes	12996
operated under Chapter 5907. of the Revised Code and the director	12997
of job and family services, to address homelessness, indigency,	12998
employment, and other veteran-related issues;	12999

(H) Establishing and providing statistical reporting formats	13000
and procedures for county veterans service commissions;	13001

(I) Publishing annually, promulgating change notices for,	13002
and distributing a listing of county veterans service officers,	13003
county veterans service commissioners, state directors of veterans	13004
affairs, and national and state service officers of accredited	13005
veterans organizations and their state headquarters. The listing	13006
shall include the expiration dates of commission members' terms of	13007
office and the organizations they represent; the names, addresses,	13008
and telephone numbers of county veterans service officers and	13009
state directors of veterans affairs; and the addresses and	13010
telephone numbers of the Ohio offices and headquarters of state	13011
and national veterans service organizations.	13012

(J) Publishing, by the first day of April of each	13013
odd-numbered year, a directory of the laws of this state dealing	13014
with veterans, as enacted through the conclusion of the previous	13015
session of the general assembly, and distributing the publication	13016
to each county veterans service office and the state headquarters	13017
of each congressionally chartered veterans organization in the	13018
state;	13019

(K) Establishing a veterans advisory committee to advise and	13020
assist the governor's office of veterans affairs in its duties.	13021
Members shall include a state representative of congressionally	13022
chartered veterans organizations referred to in section 5901.02 of	13023
the Revised Code, a representative of any other congressionally	13024
chartered state veterans organization that has at least one	13025
veterans service commissioner in the state, three representatives	13026
of the Ohio state association of county veterans service	13027
commissioners, who shall have a combined vote of one, three	13028
representatives of the state association of county veterans	13029
service officers, who shall have a combined vote of one, one	13030
representative of the county commissioners association of Ohio,	13031
who shall be a county commissioner not from the same county as any	13032
of the other county representatives, and a representative of the	13033
office of the attorney general. The governor's office of veterans	13034
affairs shall submit to the advisory committee proposed rules for	13035
the committee's operation. The committee may review and revise	13036
these proposed rules prior to submitting them to the joint	13037
committee on agency rule review.	13038

(L) Adopting, with the advice and assistance of the veterans	13039
advisory committee, policy and procedural guidelines that the	13040
veterans service commissions shall adhere to in the development	13041
and implementation of rules, policies, procedures, and guidelines	13042
for the administration of Chapter 5901. of the Revised Code. The	13043
governor's office of veterans affairs shall adopt no guidelines or	13044
rules regulating the purposes, scope, duration, or amounts of	13045
financial assistance provided to applicants pursuant to sections	13046
5901.01 to 5901.15 of the Revised Code. The director of the	13047
governor's office of veterans affairs may obtain opinions from the	13048
office of the attorney general regarding rules, policies,	13049
procedures, and guidelines of the veterans service commissions and	13050
may enforce compliance with Chapter 5901. of the Revised Code.	13051

(M) Receiving copies of form DD214 filed in accordance with	13052
the director's guidelines adopted under division (L) of this	13053
section from members of veterans service commissions appointed	13054
under section 5901.02 and from county veterans service officers	13055
employed under section 5901.07 of the Revised Code;	13056

(N) Taking any other actions required by this chapter.

13057

Sec. 5902.05.  For the purpose of assisting veterans, the	13058
director of the governor's office of veterans affairs or histhe	13059
director's representative shall visit the Ohioeach veterans' home	13060
at Sanduskyoperated under Chapter 5907. of the Revised Code and	13061
the national military home at Dayton at least once every three	13062
months, and may visit other veterans facilities as necessary. At	13063
the discretion of the governor, the director of the governor's	13064
office of veterans affairs or histhe director's representative	13065
shall visit the several governmental departments at Washington,	13066
D.C., or elsewhere, as may be necessary.	13067

Sec. 5907.01. (A) As used in this chapter:

13068

(1) "Nursing home" means a nursing home within a veterans'	13069
home.	13070

(2) "Veterans' home" means a veterans' home operated by the	13071
Ohio veterans' home agency.	13072

(B) There shall be an institution named the "Ohio veterans'	13073
home," whichis hereby established the Ohio veterans' home agency	13074
that shall be a homemaintain and operate veterans' and nursing	13075
homes for honorably discharged soldiers, sailors, and marines	13076
veterans.	13077

Sec. 5907.02.  The board of trustees of the Ohio veterans'	13078
home agency, thatwhich is hereby created, shall consist of seven	13079
members who shall govern the agency and have charge and custody of	13080
the home at Sanduskyagency's facilities. The members shall be	13081
the director of administrative services or that director's	13082
designee, the director of aging or that director's designee, and	13083
five members who shall be appointed by the governor with the	13084
advice and consent of the senate. All the members of the board	13085
appointed by the governor shall be veterans of wars in which the	13086
United States has participated, and not more than three of the	13087
members shall be of the same political party. The trustees shall	13088
serve without compensation, but they shall be allowed their actual	13089
expenses incurred in the discharge of their duties. Each year,	13090
the governor shall appoint one trustee. The term of office for	13091
each member of the board shall be for five years, commencing on	13092
the first day of July and ending on the thirtieth day of June.	13093
Each member shall hold office from the date of that member's	13094
appointment until the end of the term for which the member was	13095
appointed. Any member appointed to fill a vacancy occurring prior	13096
to the expiration of the term for which that member's predecessor	13097
was appointed shall hold office for the remainder of that term.	13098
Any member shall continue in office subsequent to the expiration	13099
date of that member's term until the member's successor takes	13100
office, or until a period of sixty days has elapsed, whichever	13101
occurs first. The board shall govern, conduct, and care for the	13102
homeveterans' homes, the property of the homehomes, and the	13103
veterans residing in the homehome.	13104

Four members of the board constitute a quorum, but any three	13105
may approve the payment of current expenses, salaries, and open	13106
contracts previously entered into by the board.	13107

All supplies for the homeagency shall be purchased as	13108
provided in sections 125.04 to 125.15 of the Revised Code.	13109

The board shall appoint a superintendent forof the Ohio	13110
veterans' home agency upon any terms that are proper, and the	13111
superintendent, with the advice and consent of the board, shall	13112
employ aides, assistants, and employees, and perform other duties	13113
that may be assigned to the superintendent by the board or become	13114
necessary in the carrying out of the superintendent's duties. The	13115
superintendent shall be responsible directly to the board.	13116

Subject to section 5907.021 of the Revised Code, the	13117
superintendent shallmay appoint one or more employees at each	13118
veterans' home as Ohio veterans' home police officers authorized	13119
to act on the grounds of thethat home, at the discretion of the	13120
superintendent. The superintendent shall provide to those	13121
employees a copy of the rules that apply to their appointment. The	13122
rules shall specify whether or not the police officers may carry a	13123
firearm.	13124

Subject to section 5907.021 of the Revised Code, the	13125
superintendent shall appoint a chief of police forof the Ohio	13126
veterans' home agency, determine the number of officers and other	13127
personnel required by theeach veterans' home, and establish	13128
salary schedules and other conditions of employment for Ohio	13129
veterans' homehomes police officers. The chief of police shall	13130
serve at the pleasure of the superintendent and shall appoint	13131
officers and other personnel as the homeveterans' homes may	13132
require, subject to the rules and limits that the superintendent	13133
establishes regarding qualifications, salary ranges, and the	13134
number of personnel. The superintendent, with the approval of the	13135
board, may purchase or otherwise acquire any police apparatus,	13136
equipment, or materials, including a police communication system	13137
and vehicles, that Ohiothe veterans' homehomes police officers	13138
may require. The superintendent may send one or more of the	13139
officers or employees nominated by the police chief to a school of	13140
instruction designed to provide additional training or skills	13141
related to their work assignment at thetheir veterans' home. The	13142
superintendent may send those officers or employees to the Ohio	13143
peace officer training academy that the superintendent considers	13144
appropriate.	13145

The board shall make an annual report to the governor as to	13146
all expenditures and as to the management of the Ohio veterans'	13147
home agency.	13148

Sec. 5907.021.  (A) As used in this section, "felony" has	13149
the same meaning as in section 109.511 of the Revised Code.	13150

(B)(1) The superintendent of the Ohio veterans' home agency	13151
shall not appoint a person as a chief of police of the agency or	13152
an employee as ana Ohio veterans' home police officer on a	13153
permanent basis, on a temporary basis, for a probationary term, or	13154
on other than a permanent basis if the person or employee	13155
previously has been convicted of or has pleaded guilty to a	13156
felony.	13157

(2)(a) The superintendent of the Ohio veterans' home shall	13158
terminate the employment of a chief of police or the employment as	13159
an Ohioa veterans' home police officer of an employee appointed	13160
as an Ohioa veterans' home police officer if that chief of police	13161
or employee does either of the following:	13162

(i) Pleads guilty to a felony;

13163

(ii) Pleads guilty to a misdemeanor pursuant to a negotiated	13164
plea agreement as provided in division (D) of section 2929.29 of	13165
the Revised Code in which the chief of police or employee agrees	13166
to surrender the certificate awarded to that chief of police or	13167
employee under section 109.77 of the Revised Code.	13168

(b) The superintendent shall suspend from employment a chief	13169
of police or from employment as an Ohioa veterans' home police	13170
officer an employee appointed as an Ohioa veterans' home police	13171
officer if that chief of police or employee is convicted, after	13172
trial, of a felony. If the chief of police or the employee files	13173
an appeal from that conviction and the conviction is upheld by the	13174
highest court to which the appeal is taken or if the chief of	13175
police or the employee does not file a timely appeal, the	13176
superintendent shall terminate the employment of that chief of	13177
police or that employee as an Ohioa veterans' home police	13178
officer. If the chief of police or the employee files an appeal	13179
that results in that chief of police's or that employee's	13180
acquittal of the felony or conviction of a misdemeanor, or in the	13181
dismissal of the felony charge against that chief of police or	13182
that employee, the superintendent shall reinstate that chief of	13183
police or that employee as an Ohioa veterans' home police	13184
officer. A chief of police or an employee who is reinstated as an	13185
Ohioa veterans' home police officer under division (B)(2)(b) of	13186
this section shall not receive any back pay unless the conviction	13187
of that chief of police or that employee of the felony was	13188
reversed on appeal, or the felony charge was dismissed, because	13189
the court found insufficient evidence to convict the chief of	13190
police or the employee of the felony.	13191

(3) Division (B) of this section does not apply regarding an	13192
offense that was committed prior to January 1, 1997.	13193

(4) The suspension from employment, or the termination of	13194
the employment, of a chief of police or an Ohioa veterans' home	13195
police officer under division (B)(2) of this section shall be in	13196
accordance with Chapter 119. of the Revised Code.	13197

Sec. 5907.022.  The board of trustees of the Ohio veterans'	13198
home agency may do either of the following to expand nursing home	13199
care and domiciliary services to veterans at sites other than the	13200
Ohio veterans' home and the Robert T. Secresthomes and nursing	13201
homehomes:	13202

(A) Enter into contracts or agreements, including agreements	13203
for the acceptance of grants, to construct, lease, purchase, or	13204
otherwise acquire real property or facilities to establish a	13205
network of facilities;	13206

(B) Enter into contracts with private providers.

13207

Sec. 5907.023. Neither the Ohio veterans' home agency	13208
established by section 5907.01 of the Revised Code nor the board	13209
of trustees of the Ohio veterans' home agency created by section	13210
5907.02 of the Revised Code is subject to sections 101.82 to	13211
101.87 of the Revised Code.	13212

Sec. 5907.03.  The management and control of the Ohio	13213
veterans' homehomes shall be subject to such inspection and	13214
supervision as the congress of the United States may require as a	13215
condition of making appropriations for itstheir maintenance. A	13216
person appointed or designated by congress may make such	13217
inspection and exercise such supervision, and, if so required by	13218
congress, hethe person may have and exercise the privileges of a	13219
member of the board of trustees of the Ohio veterans' home agency.	13220

Sec. 5907.04.  All members of the armed forces, who served in	13221
the regular or volunteer forces of the United States or the Ohio	13222
national guard or members of the naval militia during the war with	13223
Spain, the Philippine insurrection, the China relief expedition,	13224
the Indian war, the Mexican expedition, World War I, World War II,	13225
or during the period beginning June 25, 1950 and ending July 19,	13226
1953, said period being known as the Korean conflict, or during	13227
the period beginning August 5, 1964, and ending July 1, 1973, said	13228
period being known as the Vietnam conflict, or any person who is	13229
awarded either the armed forces expeditionary medal established by	13230
presidential executive order 10977 dated December 4, 1961, or the	13231
Vietnam service medal established by presidential executive order	13232
11231 dated July 8, 1965, who have been honorably discharged or	13233
separated under honorable conditions therefrom, or any discharged	13234
members of the Polish and Czechoslovakian armed forces who served	13235
in armed conflict with an enemy of the United States in World War	13236
I or World War II who have been citizens of the United States for	13237
at least ten years, provided that the above-mentioned persons have	13238
been citizens of Ohiothis state for five consecutive years or	13239
more at the date of making application for admission, are disabled	13240
by disease, wounds, or otherwise, and are by reason of such	13241
disability incapable of earning their living, and all members of	13242
the Ohio national guard or naval militia who have lost an arm or	13243
leg, or their sight, or become permanently disabled from any	13244
cause, while in the line and discharge of duty, and are not able	13245
to support themselves, may be admitted to the Ohioa veterans'	13246
home under such rules as itsthe board of trustees of the Ohio	13247
veterans' home agency adopts.	13248

The superintendent of the Ohio veterans' home agency shall	13249
promptly and diligently pursue the establishment of the	13250
eligibility for medical assistance under Chapter 5111. of the	13251
Revised Code of all persons admitted to thea veterans' home and	13252
all residents of thea home who appear to qualify and shall	13253
promptly and diligently pursue and maintain the certification of	13254
theeach home's compliance with federal laws and regulations	13255
governing participation in the medical assistance program to	13256
include as large as possible a part of the home's bed capacity.	13257

The Ohio veterans' homeVeterans' homes may reserve a bed	13258
during the temporary absence of a resident or patient from the	13259
home, including The Robert T. Secresta nursing home within it,	13260
under conditions prescribed by the board of trustees of the Ohio	13261
veterans' home, to include hospitalization for an acute condition,	13262
visits with relatives and friends, and participation in	13263
therapeutic programs outside the facilityhome. TheA home shall	13264
not reserve a bed for more than thirty days, except that absences	13265
for more than thirty days due to hospitalization may be	13266
authorized.	13267

Sec. 5907.05.  In the admission to the Ohioa veterans' home	13268
of honorably discharged soldiers, sailors, and marinesveterans	13269
who have served the United States government, preference shall be	13270
given to those who served in Ohio military organizations.	13271

Sec. 5907.06.  An insane person shall not be admitted to the	13272
Ohioa veterans' home. In case suchan insane person, through	13273
misrepresentation as to histhe person's condition, is sent to the	13274
a home, hethe person shall be returned to, and the expense	13275
thereofof the return shall be borne by, the county from which he	13276
the person came.	13277

Sec. 5907.07.  When a veteran is entitled to admission into	13278
the Ohioa veterans' home, the chairmanchairperson of the	13279
veterans service commission of the county in which suchthe	13280
veteran resides, upon application, may furnish himthe veteran	13281
transportation to the home by the most direct route from histhe	13282
veteran's residence. SuchThe transportation shall be paid from	13283
the veterans service commission fund of the county.	13284

Sec. 5907.08.  When a resident of the Ohioa veterans' home	13285
becomes insane, the commandantsuperintendent of the Ohio	13286
veterans' home agency shall file with the probate judge of the	13287
county in which the home is located substantially the following	13288
affidavit:	13289

"The State of Ohio, .......... county, ss. ...........,	13290
commandantsuperintendent of the Ohio veterans' home agency, being	13291
duly sworn, says that the commandantsuperintendent believes that	13292
............, a resident of the veterans' home located in	13293
.......... county, is insane; that, in consequence of the	13294
resident's insanity, the resident's being at large is dangerous to	13295
the community, and that the resident was received into the home	13296
from ............ county, on the ...... day of ........., .....	13297

....................A.B."

13298

Sec. 5907.09.  When the affidavit referred to in section	13299
5907.08 of the Revised Code is filed, the probate judge shall	13300
forthwith determine the sanity of suchthe resident, and, as far.	13301
Insofar as applicable, the laws governing in cases of admission to	13302
a state hospital for the insane shall apply. The probate judge	13303
shall have the same authority, and may receive and order paid the	13304
same fees and costs, as the probate judge would have in the county	13305
in which suchthe veteran was a resident at the time of entering	13306
the Ohio veterans' home.	13307

Sec. 5907.10. (A) The Ohio veterans' home agency shall	13308
maintain and operate a nursing home as part of each veterans' home	13309
for the benefit of soldiers, sailors, and marineshonorably	13310
discharged veterans admitted to the institutiona veterans' home	13311
under this chapter, a nursing home to be known as "The Robert T.	13312
Secrest Nursing Home." The Robert T. Secrest nursing home is	13313
homes are subject to sections 3721.01 to 3721.09 and 3721.99 of	13314
the Revised Code.	13315

(B) The nursing home within the veterans' home located in	13316
Sandusky shall be known as "The Robert T. Secrest Nursing Home."	13317

Sec. 5907.11.  (A) The superintendent of the Ohio veterans'	13318
home agency, with the approval of the board of trustees of the	13319
homeagency, may establish a local fund for each veterans' home to	13320
be used for the entertainment and welfare of the residents of the	13321
home. TheEach fund shall be designated as the residents' benefit	13322
fund and shall be operated for the exclusive benefit of the	13323
residents of the associated home. TheEach fund shall receive all	13324
revenue from the sale of commissary items at the associated home	13325
and shall receive all moneys received as donations by the	13326
associated home from any source.	13327

(B) The residents' benefit fundfunds also may be used to	13328
receive and disburse any donations made for events sponsored by	13329
the Ohio veterans hall of fame.	13330

(C) The superintendent, subject to the approval of the board	13331
of trustees, shall establish rules for the operation of the	13332
residents' benefit fundfunds.	13333

Sec. 5907.12.  The board of trustees of the Ohio veterans'	13334
home agency may utilize the services of volunteers to assist in	13335
attending to and caring for residents, assisting in resident	13336
activities, caring for the home'sveterans' homes' buildings and	13337
grounds, and participating in any other services that accomplish	13338
any of the board's purposes. All volunteer programs are subject	13339
to the board's approval. The board may recruit, train, and	13340
supervise the services of community volunteers or volunteer groups	13341
for volunteer programs. The board may designate volunteers as	13342
state employees for the purpose of motor vehicle accident	13343
liability insurance under section 9.83 of the Revised Code and for	13344
the purpose of indemnification from liability incurred in the	13345
performance of their duties under section 9.87 of the Revised	13346
Code.	13347

Sec. 5907.13.  Residents of the Ohio veterans' homehomes may	13348
be assessed a fee to pay a portion of the expenses of their	13349
support, dependent upon their ability to pay. Subject to	13350
controlling board approval, the board of trustees of the Ohio	13351
veterans' home agency shall adopt rules for determining a	13352
resident's ability to pay. Each resident shall furnish the board	13353
of trustees statements of income, assets, debts, and expenses that	13354
the board requires.	13355

All fees contributed by the residents under this section	13356
shall be deposited into an interest-bearing account in a public	13357
depository in accordance with section 135.18 of the Revised Code.	13358
All of these fees shall be paid to the treasurer of state within	13359
thirty days after the end of the month of receipt, together with	13360
all interest credited to the account to date. The treasurer of	13361
state shall credit eighty per cent of these fees and of this	13362
interest to the Ohio veterans' homehomes operating fund and	13363
twenty per cent of these fees and of this interest to the Ohio	13364
veterans' homehomes fund.	13365

The fee for each resident shall be based upon the level of	13366
care provided to the resident by the resident's home. The board	13367
of trustees shall determine authorized levels of care for	13368
residents. The assessment for each resident shall not exceed the	13369
difference between the total per diem amount collected by the	13370
state for maintenance from all sources on the resident's behalf	13371
and the average annual per diem cost for the resident's	13372
maintenance, computed in accordance with veterans administration	13373
regulations.	13374

Sec. 5907.131.  There is hereby created in the state treasury	13375
the Ohio veterans' homehomes operating fund, in which shall be	13376
placed the fee and interest revenue credited to it under section	13377
5907.13 of the Revised Code. The fund shall be used for paying	13378
the operating costs of the Ohio veterans' homehomes.	13379

Sec. 5907.14.  There is hereby created in the state treasury	13380
the Ohio veterans' homehomes fund, to which shall be credited the	13381
fee and interest revenue specified in section 5907.13 of the	13382
Revised Code. The fund shall be used only for the following	13383
purposes:	13384

(A) Paying the cost of capital facilities or equipment	13385
purchases for the Ohio veterans' homehomes;	13386

(B) Participation in capital facilities for the Ohio	13387
veterans' homehomes with the federal government, municipal	13388
corporations, counties, or other governmental agencies.	13389

Sec. 5907.141.  (A) All money received from the United	13390
States department of veterans affairs in per diem grants for care	13391
that the Ohio veterans' home provideshomes provide shall be	13392
deposited in the state treasury to the credit of the Ohio	13393
veterans' homehomes federal grant fund, which is hereby created.	13394
Money credited to the fund shall be used only for the operating	13395
costs of the Ohio veterans' homehomes.	13396

(B) Any resident of the Ohioa veterans' home whom the	13397
United States department of veterans affairs determines to have	13398
excess income or assets, therefore rendering the home ineligible	13399
to collect per diem grant reimbursement for days of care provided	13400
to that resident, ismay be required to pay, in addition to the	13401
fees assessed under section 5907.13 of the Revised Code, an amount	13402
equal to the rate of per diem grant that the department denied for	13403
that particular resident. Any amount that the resident pays under	13404
this division shall be collected and distributed in the same	13405
manner as the fees assessed under section 5907.13 of the Revised	13406
Code.	13407

Sec. 5907.15.  There is hereby created in the state treasury	13408
the Ohio veterans' homehomes rental, service, and medicare	13409
reimbursement fund. Revenue generated from temporary use	13410
agreements of thea veterans' home, from the sale of meals at the	13411
a home's dining halls, from rental, lease, or sharing agreements	13412
for the use of facilities, supplies, equipment, utilities, or	13413
services provided by thea home, and from medicare reimbursements	13414
shall be credited to the fund. The fund shall be used only for	13415
maintenance costs of the homehomes and for the purchase of	13416
medications, medical supplies, and medical equipment by the home	13417
homes.	13418

Sec. 6103.02.  (A) For the purpose of preserving and	13419
promoting the public health and welfare, a board of county	13420
commissioners may acquire, construct, maintain, and operate any	13421
public water supply facilities within its county for one or more	13422
sewer districts and may provide for their protection and	13423
prevent their pollution and unnecessary waste. The board may	13424
negotiate and enter into a contract with any public agency or any	13425
person for the management, maintenance, operation, and repair of	13426
the facilities on behalf of the county, upon the terms and	13427
conditions as may be agreed upon with the agency or person and as	13428
may be determined by the board to be in the interests of the	13429
county. By contract with any public agency or any person	13430
operating public water supply facilities within or without its	13431
county, the board also may provide a supply of water to a sewer	13432
district from the facilities of the public agency or person.	13433

(B) The county sanitary engineer or sanitary engineering	13434
department, in addition to other assigned duties, shall assist	13435
the board in the performance of its duties under this chapter and	13436
shall be charged with other duties and services in relation to	13437
the board's duties as the board prescribes.	13438

(C) The board may adopt, publish, administer, and enforce	13439
rules for the construction, maintenance, protection, and use of	13440
county-owned or county-operated public water supply facilities	13441
outside municipal corporations and of public water supply	13442
facilities within municipal corporations that are owned or	13443
operated by the county or that are supplied with water from water	13444
supply facilities owned or operated by the county, including, but	13445
not limited to, rules for the establishment and use of any	13446
connections, the termination in accordance with reasonable	13447
procedures of water service for nonpayment of county water rates	13448
and charges, and the establishment and use of security deposits to	13449
the extent considered necessary to ensure the payment of county	13450
water rates and charges. The rules shall not be inconsistent with	13451
the laws of the state or any applicable rules of the director of	13452
environmental protection.	13453

(D) No public water supply facilities shall be constructed	13454
in any county outside municipal corporations by any person,	13455
except for the purpose of supplying water to those municipal	13456
corporations, until the plans and specifications for the	13457
facilities have been approved by the board. Construction shall	13458
be done under the supervision of the county sanitary engineer.	13459
Any person constructing public water supply facilities shall pay	13460
to the county all expenses incurred by the board in connection	13461
with the construction.	13462

(E) The county sanitary engineer or the county sanitary	13463
engineer's authorized assistants or agents, when properly	13464
identified in writing or otherwise and after written notice is	13465
delivered to the owner at least five days in advance or mailed at	13466
least five days in advance by first class or certified mail to the	13467
owner's tax mailing address, may enter upon any public or private	13468
property for the purpose of making, and may make, surveys or	13469
inspections necessary for the design or evaluation of county	13470
public water supply facilities. This entry is not a trespass and	13471
is not to be considered an entry in connection with any	13472
appropriation of property proceedings under sections 163.01 to	13473
163.22 of the Revised Code that may be pending. No person or	13474
public agency shall forbid the county sanitary engineer or the	13475
county sanitary engineer's authorized assistants or agents to	13476
enter, or interfere with their entry, upon the property for the	13477
purpose of making the surveys or inspections. If actual damage	13478
is done to property by the making of the surveys or inspections,	13479
the board shall pay the reasonable value of the damage to the	13480
property owner, and the cost shall be included in the cost of	13481
the facilities and may be included in any special assessments	13482
levied and collected to pay that cost.	13483

(F) The board shall fix reasonable rates, including	13484
penalties for late payments, for water supplied to public agencies	13485
and persons when the source of supply or the facilities for its	13486
distribution are owned or operated by the county and may change	13487
the rates from time to time as it considers advisable. When the	13488
source of the water supply to be used by the county is owned by	13489
another public agency or person, the schedule of rates to be	13490
charged by the public agency or person shall be approved by the	13491
board at the time it enters into a contract for the use of water	13492
from the public agency or person. When the distribution	13493
facilities are owned by the county, the board also may fix	13494
reasonable charges to be collected for the privilege of	13495
connecting to the distribution facilities and may require that,	13496
prior to the connection, the charges be paid in full or, if	13497
determined by the board to be equitable in a resolution relating	13498
to the payment of the charges, may require their payment in	13499
installments, as considered adequate by the board, at the times,	13500
in the amounts, and with the security, carrying charges, and	13501
penalties as may be determined by the board in that resolution to	13502
be fair and appropriate. No public agency or person shall be	13503
permitted to connect to those facilities until the charges have	13504
been paid in full or provision for their payment in installments	13505
has been made. If the connection charges are to be paid in	13506
installments, the board shall certify, to the county auditor,	13507
information sufficient to identify each parcel of property served	13508
by a connection and, with respect to each parcel, the total of the	13509
charges to be paid in installments, the amount of each	13510
installment, and the total number of installments to be paid. The	13511
county auditor shall record and maintain the information so	13512
supplied in the waterworks record provided for in section 6103.16	13513
of the Revised Code until the connection charges are paid in full.	13514
The board may include amounts attributable to connection charges	13515
being paid in installments in its billings of rates and other	13516
charges for water supplied. In addition, the board may consider	13517
payments made to a school district under section 6103.25 of the	13518
Revised Code when the board establishes rates and other charges	13519
for water supplied.	13520

(G) When any rates or charges are not paid when due, the	13521
board may do any or all of the following:	13522

(1) Certify the unpaid rates or charges, together with any	13523
penalties, to the county auditor. The county auditor shall place	13524
the certified amount upon the real property tax list and duplicate	13525
against the property served by the connection. The certified	13526
amount shall be a lien on the property from the date placed on	13527
the real property tax list and duplicate and shall be collected in	13528
the same manner as taxes, except that, notwithstanding section	13529
323.15 of the Revised Code, a county treasurer shall accept a	13530
payment in that amount when separately tendered as payment for	13531
the full amount of the unpaid rates or charges and associated	13532
penalties. The lien shall be released immediately upon payment in	13533
full of the certified amount.	13534

(2) Collect the unpaid rates or charges, together with any	13535
penalties, by actions at law in the name of the county from an	13536
owner, tenant, or other person or public agency that is liable	13537
for the payment of the rates or charges;	13538

(3) Terminate, in accordance with established rules, the	13539
water service to the particular property unless and until the	13540
unpaid rates or charges, together with any penalties, are paid in	13541
full;	13542

(4) Apply, to the extent required, any security deposit made	13543
in accordance with established rules to the payment of the unpaid	13544
rates and charges, together with any penalties, for water service	13545
to the particular property.	13546

All moneys collected as rates, charges, or penalties fixed or	13547
established in accordance with division (F) of this section for	13548
water supply purposes in or for any sewer district shall be paid	13549
to the county treasurer and kept in a separate and distinct water	13550
fund established by the board to the credit of the district.	13551

Each board that fixes water rates or charges may render	13552
estimated bills periodically, provided that at least quarterly it	13553
shall schedule an actual reading of each customer's meter so as	13554
to render a bill for the actual amount shown by the meter reading	13555
to be due, with credit for prior payments of any estimated bills	13556
submitted for any part of the billing period, except that	13557
estimated bills may be rendered if a customer's meter is not	13558
accessible for a timely reading or if the circumstances preclude a	13559
scheduled reading. Each board also shall establish procedures	13560
providing a fair and reasonable opportunity for the resolution of	13561
billing disputes.	13562

When property to which water service is provided is about to	13563
be sold, any party to the sale or an agent of a party may request	13564
the board to have the meter at that property read and to render,	13565
within ten days following the date on which the request is made, a	13566
final bill for all outstanding rates and charges for water	13567
service. The request shall be made at least fourteen days prior	13568
to the transfer of the title of the property.	13569

At any time prior to a certification under division (G)(1) of	13570
this section, the board shall accept any partial payment of unpaid	13571
water rates or charges in the amount of ten dollars or more.	13572

Except as otherwise provided in any proceedings authorizing	13573
or providing for the security for and payment of any public	13574
obligations, or in any indenture or trust or other agreement	13575
securing public obligations, moneys in the water fund shall be	13576
applied first to the payment of the cost of the management,	13577
maintenance, and operation of the water supply facilities of, or	13578
used or operated for, the sewer district, which cost may include	13579
the county's share of management, maintenance, and operation costs	13580
under cooperative contracts for the acquisition, construction, or	13581
use of water supply facilities and, in accordance with a cost	13582
allocation plan adopted under division (H) of this section,	13583
payment of all allowable direct and indirect costs of the	13584
district, the county sanitary engineer or sanitary engineering	13585
department, or a federal or state grant program, incurred for the	13586
purposes of this chapter, and shall be applied second to the	13587
payment of debt charges payable on any outstanding public	13588
obligations issued or incurred for the acquisition or	13589
construction of water supply facilities for or serving the	13590
district, or for the funding of a bond retirement or other fund	13591
established for the payment of or security for the obligations.	13592
Any surplus remaining may be applied to the acquisition or	13593
construction of those facilities or for the payment of	13594
contributions to be made, or costs incurred, for the acquisition	13595
or construction of those facilities under cooperative contracts.	13596
Moneys in the water fund shall not be expended other than for the	13597
use and benefit of the district.	13598

(H) A board of county commissioners may adopt a cost	13599
allocation plan that identifies, accumulates, and distributes	13600
allowable direct and indirect costs that may be paid from the	13601
water fund of the sewer district created pursuant to division	13602
(G) of this section, and that prescribes methods for allocating	13603
those costs. The plan shall authorize payment from the fund of	13604
only those costs incurred by the district, the county sanitary	13605
engineer or sanitary engineering department, or a federal or state	13606
grant program, and those costs incurred by the general and other	13607
funds of the county for a common or joint purpose, that are	13608
necessary and reasonable for the proper and efficient	13609
administration of the district under this chapter. The plan	13610
shall not authorize payment from the fund of any general	13611
government expense required to carry out the overall governmental	13612
responsibilities of a county. The plan shall conform to United	13613
States office of management and budget Circular A-87, "Cost	13614
Principles for State, Local, and Indian Tribal Governments,"	13615
published 15 May 17, 1995.	13616

Sec. 6103.25.  Whenever, in the opinion of the board of	13617
county commissioners, it is necessary to acquire real estate or	13618
any interest in real estate for the acquisition, construction,	13619
maintenance, or operation of any water supply facilities	13620
authorized by this chapter, or to acquire the right to acquire,	13621
construct, maintain, and operate those facilities in and upon any	13622
property within or outside of a county sewer district, it may	13623
purchase the real estate, interest in real estate, or right by	13624
negotiation. If the board and the owner of the real estate,	13625
interest in real estate, or right are unable to agree upon its	13626
purchase and sale, or the amount of damages to be awarded for	13627
it, the board may appropriate the real estate, interest, or	13628
right in accordance with sections 163.01 to 163.22 of the Revised	13629
Code, except that the board, in the exercise of the powers granted	13630
by this section or any other section of this chapter, may not	13631
appropriate real estate or personal property owned by a municipal	13632
corporation.	13633

If the board purchases or appropriates real estate, an	13634
interest in real estate, or a right pursuant to this section and	13635
the real estate, interest in real estate, or right was subject to	13636
real or personal property taxes prior to the purchase or	13637
appropriation, the board may make payments to a school district of	13638
all or a portion of the amount of the taxes that otherwise would	13639
have been received by the district if the purchase or	13640
appropriation had not occurred. The payments shall be authorized	13641
by a resolution adopted by the board.	13642

As used in this section, "school district" means a "city	13643
school district" as defined in section 3311.02 of the Revised	13644
Code, a "local school district" as defined in section 3311.03 of	13645
the Revised Code, an "exempted village school district" as defined	13646
in section 3311.04 of the Revised Code, and a "joint vocational	13647
school district" as defined in section 3311.18 of the Revised	13648
Code.	13649

Section 1.02. That existing sections 102.02, 109.71, 109.77,	13650
122.171, 123.024, 123.10, 124.381, 124.82, 133.20, 145.01,	13651
145.012, 145.33, 151.01, 151.40, 152.09, 152.10, 166.01, 166.02,	13652
166.03, 166.04, 166.05, 166.06, 166.07, 166.08, 166.11, 183.021,	13653
183.19, 183.30, 307.23, 715.02, 1565.351, 1565.04, 1565.15,	13654
1711.11, 1711.53, 2113.031, 2901.01, 2921.51, 2935.01, 2935.03,	13655
2935.031, 3318.01, 3318.011, 3318.03, 3318.031, 3318.032,	13656
3318.033, 3318.042, 3318.08, 3318.084, 3318.086, 3318.10, 3318.12,	13657
3318.15, 3318.19, 3318.25, 3318.26, 3318.311, 3318.36, 3354.16,	13658
3355.12, 3357.16, 3383.01, 3383.02, 3383.03, 3519.04, 3702.5210,	13659
3702.5211, 3702.5213, 3721.01, 3737.71, 4117.01, 4117.14, 4123.01,	13660
4123.35, 4582.03, 4582.20, 4582.27, 4582.30, 4582.46, 5709.61,	13661
5715.20, 5717.01, 5731.21, 5733.021, 5733.26, 5733.40, 5733.401,	13662
5739.031, 5747.01, 5747.02, 5902.02, 5902.05, 5907.01, 5907.02,	13663
5907.021, 5907.022, 5907.03, 5907.04, 5907.05, 5907.06, 5907.07,	13664
5907.08, 5907.09, 5907.10, 5907.11, 5907.12, 5907.13, 5907.131,	13665
5907.14, 5907.141, 5907.15, 6103.02, and 6103.25 and section	13666
5747.231 of the Revised Code are hereby repealed.	13667

Section 1.03. Sections 183.20, 183.21, 183.22, 183.23,	13668
183.24, and 183.25 of the Revised Code are hereby repealed,	13669
effective July 1, 2003.	13670

Section 1.04. That the version of section 2935.03 of the	13671
Revised Code that is scheduled to take effect January 1, 2004, be	13672
amended to read as follows:	13673

Sec. 2935.03.  (A)(1) A sheriff, deputy sheriff, marshal,	13674
deputy marshal, municipal police officer, township constable,	13675
police officer of a township or joint township police district,	13676
member of a police force employed by a metropolitan housing	13677
authority under division (D) of section 3735.31 of the Revised	13678
Code, member of a police force employed by a regional transit	13679
authority under division (Y) of section 306.35 of the Revised	13680
Code, state university law enforcement officer appointed under	13681
section 3345.04 of the Revised Code, Ohio veterans' home police	13682
officer appointed under section 5907.02 of the Revised Code, or	13683
special police officer employed by a port authority under section	13684
4582.04 or 4582.28 of the Revised Code shall arrest and detain,	13685
until a warrant can be obtained, a person found violating, within	13686
the limits of the political subdivision, metropolitan housing	13687
authority housing project, regional transit authority facilities	13688
or areas of a municipal corporation that have been agreed to by a	13689
regional transit authority and a municipal corporation located	13690
within its territorial jurisdiction, college, university, Ohio	13691
veterans' home operated under Chapter 5907. of the Revised Code,	13692
or port authority in which the peace officer is appointed,	13693
employed, or elected, a law of this state, an ordinance of a	13694
municipal corporation, or a resolution of a township.	13695

(2) A peace officer of the department of natural resources	13696
or an individual designated to perform law enforcement duties	13697
under section 511.232, 1545.13, or 6101.75 of the Revised Code	13698
shall arrest and detain, until a warrant can be obtained, a person	13699
found violating, within the limits of the peace officer's or	13700
individual's territorial jurisdiction, a law of this state.	13701

(3) The house sergeant at arms if the house sergeant at arms	13702
has arrest authority pursuant to division (E)(1) of section	13703
101.311 of the Revised Code and an assistant house sergeant at	13704
arms shall arrest and detain, until a warrant can be obtained, a	13705
person found violating, within the limits of the sergeant at	13706
arms's or assistant sergeant at arms's territorial jurisdiction	13707
specified in division (D)(1)(a) of section 101.311 of the Revised	13708
Code or while providing security pursuant to division (D)(1)(f) of	13709
section 101.311 of the Revised Code, a law of this state, an	13710
ordinance of a municipal corporation, or a resolution of a	13711
township.	13712

(B)(1) When there is reasonable ground to believe that an	13713
offense of violence, the offense of criminal child enticement as	13714
defined in section 2905.05 of the Revised Code, the offense of	13715
public indecency as defined in section 2907.09 of the Revised	13716
Code, the offense of domestic violence as defined in section	13717
2919.25 of the Revised Code, the offense of violating a protection	13718
order as defined in section 2919.27 of the Revised Code, the	13719
offense of menacing by stalking as defined in section 2903.211 of	13720
the Revised Code, the offense of aggravated trespass as defined in	13721
section 2911.211 of the Revised Code, a theft offense as defined	13722
in section 2913.01 of the Revised Code, or a felony drug abuse	13723
offense as defined in section 2925.01 of the Revised Code, has	13724
been committed within the limits of the political subdivision,	13725
metropolitan housing authority housing project, regional transit	13726
authority facilities or those areas of a municipal corporation	13727
that have been agreed to by a regional transit authority and a	13728
municipal corporation located within its territorial jurisdiction,	13729
college, university, Ohio veterans' home operated under Chapter	13730
5907. of the Revised Code, or port authority in which the peace	13731
officer is appointed, employed, or elected or within the limits of	13732
the territorial jurisdiction of the peace officer, a peace officer	13733
described in division (A) of this section may arrest and detain	13734
until a warrant can be obtained any person who the peace officer	13735
has reasonable cause to believe is guilty of the violation.	13736

(2) For purposes of division (B)(1) of this section, the	13737
execution of any of the following constitutes reasonable ground to	13738
believe that the offense alleged in the statement was committed	13739
and reasonable cause to believe that the person alleged in the	13740
statement to have committed the offense is guilty of the	13741
violation:	13742

(a) A written statement by a person alleging that an alleged	13743
offender has committed the offense of menacing by stalking or	13744
aggravated trespass;	13745

(b) A written statement by the administrator of the	13746
interstate compact on mental health appointed under section	13747
5119.51 of the Revised Code alleging that a person who had been	13748
hospitalized, institutionalized, or confined in any facility under	13749
an order made pursuant to or under authority of section 2945.37,	13750
2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or 2945.402 of the	13751
Revised Code has escaped from the facility, from confinement in a	13752
vehicle for transportation to or from the facility, or from	13753
supervision by an employee of the facility that is incidental to	13754
hospitalization, institutionalization, or confinement in the	13755
facility and that occurs outside of the facility, in violation of	13756
section 2921.34 of the Revised Code;	13757

(c) A written statement by the administrator of any facility	13758
in which a person has been hospitalized, institutionalized, or	13759
confined under an order made pursuant to or under authority of	13760
section 2945.37, 2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or	13761
2945.402 of the Revised Code alleging that the person has escaped	13762
from the facility, from confinement in a vehicle for	13763
transportation to or from the facility, or from supervision by an	13764
employee of the facility that is incidental to hospitalization,	13765
institutionalization, or confinement in the facility and that	13766
occurs outside of the facility, in violation of section 2921.34 of	13767
the Revised Code.	13768

(3)(a) For purposes of division (B)(1) of this section, a	13769
peace officer described in division (A) of this section has	13770
reasonable grounds to believe that the offense of domestic	13771
violence or the offense of violating a protection order has been	13772
committed and reasonable cause to believe that a particular person	13773
is guilty of committing the offense if any of the following	13774
occurs:	13775

(i) A person executes a written statement alleging that the	13776
person in question has committed the offense of domestic violence	13777
or the offense of violating a protection order against the person	13778
who executes the statement or against a child of the person who	13779
executes the statement.	13780

(ii) No written statement of the type described in division	13781
(B)(3)(a)(i) of this section is executed, but the peace officer,	13782
based upon the peace officer's own knowledge and observation of	13783
the facts and circumstances of the alleged incident of the offense	13784
of domestic violence or the alleged incident of the offense of	13785
violating a protection order or based upon any other information,	13786
including, but not limited to, any reasonably trustworthy	13787
information given to the peace officer by the alleged victim of	13788
the alleged incident of the offense or any witness of the alleged	13789
incident of the offense, concludes that there are reasonable	13790
grounds to believe that the offense of domestic violence or the	13791
offense of violating a protection order has been committed and	13792
reasonable cause to believe that the person in question is guilty	13793
of committing the offense.	13794

(iii) No written statement of the type described in division	13795
(B)(3)(a)(i) of this section is executed, but the peace officer	13796
witnessed the person in question commit the offense of domestic	13797
violence or the offense of violating a protection order.	13798

(b) If pursuant to division (B)(3)(a) of this section a	13799
peace officer has reasonable grounds to believe that the offense	13800
of domestic violence or the offense of violating a protection	13801
order has been committed and reasonable cause to believe that a	13802
particular person is guilty of committing the offense, it is the	13803
preferred course of action in this state that the officer arrest	13804
and detain that person pursuant to division (B)(1) of this section	13805
until a warrant can be obtained.	13806

If pursuant to division (B)(3)(a) of this section a peace	13807
officer has reasonable grounds to believe that the offense of	13808
domestic violence or the offense of violating a protection order	13809
has been committed and reasonable cause to believe that family or	13810
household members have committed the offense against each other,	13811
it is the preferred course of action in this state that the	13812
officer, pursuant to division (B)(1) of this section, arrest and	13813
detain until a warrant can be obtained the family or household	13814
member who committed the offense and whom the officer has	13815
reasonable cause to believe is the primary physical aggressor.	13816
There is no preferred course of action in this state regarding any	13817
other family or household member who committed the offense and	13818
whom the officer does not have reasonable cause to believe is the	13819
primary physical aggressor, but, pursuant to division (B)(1) of	13820
this section, the peace officer may arrest and detain until a	13821
warrant can be obtained any other family or household member who	13822
committed the offense and whom the officer does not have	13823
reasonable cause to believe is the primary physical aggressor.	13824

(c) If a peace officer described in division (A) of this	13825
section does not arrest and detain a person whom the officer has	13826
reasonable cause to believe committed the offense of domestic	13827
violence or the offense of violating a protection order when it is	13828
the preferred course of action in this state pursuant to division	13829
(B)(3)(b) of this section that the officer arrest that person, the	13830
officer shall articulate in the written report of the incident	13831
required by section 2935.032 of the Revised Code a clear statement	13832
of the officer's reasons for not arresting and detaining that	13833
person until a warrant can be obtained.	13834

(d) In determining for purposes of division (B)(3)(b) of	13835
this section which family or household member is the primary	13836
physical aggressor in a situation in which family or household	13837
members have committed the offense of domestic violence or the	13838
offense of violating a protection order against each other, a	13839
peace officer described in division (A) of this section, in	13840
addition to any other relevant circumstances, should consider all	13841
of the following:	13842

(i) Any history of domestic violence or of any other violent	13843
acts by either person involved in the alleged offense that the	13844
officer reasonably can ascertain;	13845

(ii) If violence is alleged, whether the alleged violence	13846
was caused by a person acting in self-defense;	13847

(iii) Each person's fear of physical harm, if any, resulting	13848
from the other person's threatened use of force against any person	13849
or resulting from the other person's use or history of the use of	13850
force against any person, and the reasonableness of that fear;	13851

(iv) The comparative severity of any injuries suffered by	13852
the persons involved in the alleged offense.	13853

(e)(i) A peace officer described in division (A) of this	13854
section shall not require, as a prerequisite to arresting or	13855
charging a person who has committed the offense of domestic	13856
violence or the offense of violating a protection order, that the	13857
victim of the offense specifically consent to the filing of	13858
charges against the person who has committed the offense or sign a	13859
complaint against the person who has committed the offense.	13860

(ii) If a person is arrested for or charged with committing	13861
the offense of domestic violence or the offense of violating a	13862
protection order and if the victim of the offense does not	13863
cooperate with the involved law enforcement or prosecuting	13864
authorities in the prosecution of the offense or, subsequent to	13865
the arrest or the filing of the charges, informs the involved law	13866
enforcement or prosecuting authorities that the victim does not	13867
wish the prosecution of the offense to continue or wishes to drop	13868
charges against the alleged offender relative to the offense, the	13869
involved prosecuting authorities, in determining whether to	13870
continue with the prosecution of the offense or whether to dismiss	13871
charges against the alleged offender relative to the offense and	13872
notwithstanding the victim's failure to cooperate or the victim's	13873
wishes, shall consider all facts and circumstances that are	13874
relevant to the offense, including, but not limited to, the	13875
statements and observations of the peace officers who responded to	13876
the incident that resulted in the arrest or filing of the charges	13877
and of all witnesses to that incident.	13878

(f) In determining pursuant to divisions (B)(3)(a) to (g) of	13879
this section whether to arrest a person pursuant to division	13880
(B)(1) of this section, a peace officer described in division (A)	13881
of this section shall not consider as a factor any possible	13882
shortage of cell space at the detention facility to which the	13883
person will be taken subsequent to the person's arrest or any	13884
possibility that the person's arrest might cause, contribute to,	13885
or exacerbate overcrowding at that detention facility or at any	13886
other detention facility.	13887

(g) If a peace officer described in division (A) of this	13888
section intends pursuant to divisions (B)(3)(a) to (g) of this	13889
section to arrest a person pursuant to division (B)(1) of this	13890
section and if the officer is unable to do so because the person	13891
is not present, the officer promptly shall seek a warrant for the	13892
arrest of the person.	13893

(h) If a peace officer described in division (A) of this	13894
section responds to a report of an alleged incident of the offense	13895
of domestic violence or an alleged incident of the offense of	13896
violating a protection order and if the circumstances of the	13897
incident involved the use or threatened use of a deadly weapon or	13898
any person involved in the incident brandished a deadly weapon	13899
during or in relation to the incident, the deadly weapon that was	13900
used, threatened to be used, or brandished constitutes contraband,	13901
and, to the extent possible, the officer shall seize the deadly	13902
weapon as contraband pursuant to section 2933.43 of the Revised	13903
Code. Upon the seizure of a deadly weapon pursuant to division	13904
(B)(3)(h) of this section, section 2933.43 of the Revised Code	13905
shall apply regarding the treatment and disposition of the deadly	13906
weapon. For purposes of that section, the "underlying criminal	13907
offense" that was the basis of the seizure of a deadly weapon	13908
under division (B)(3)(h) of this section and to which the deadly	13909
weapon had a relationship is any of the following that is	13910
applicable:	13911

(i) The alleged incident of the offense of domestic violence	13912
or the alleged incident of the offense of violating a protection	13913
order to which the officer who seized the deadly weapon responded;	13914

(ii) Any offense that arose out of the same facts and	13915
circumstances as the report of the alleged incident of the offense	13916
of domestic violence or the alleged incident of the offense of	13917
violating a protection order to which the officer who seized the	13918
deadly weapon responded.	13919

(4) If, in the circumstances described in divisions	13920
(B)(3)(a) to (g) of this section, a peace officer described in	13921
division (A) of this section arrests and detains a person pursuant	13922
to division (B)(1) of this section, or if, pursuant to division	13923
(B)(3)(h) of this section, a peace officer described in division	13924
(A) of this section seizes a deadly weapon, the officer, to the	13925
extent described in and in accordance with section 9.86 or 2744.03	13926
of the Revised Code, is immune in any civil action for damages for	13927
injury, death, or loss to person or property that arises from or	13928
is related to the arrest and detention or the seizure.	13929

(C) When there is reasonable ground to believe that a	13930
violation of division (A)(1), (2), or (3) of section 4506.15 or a	13931
violation of section 4511.19 of the Revised Code has been	13932
committed by a person operating a motor vehicle subject to	13933
regulation by the public utilities commission of Ohio under Title	13934
XLIX of the Revised Code, a peace officer with authority to	13935
enforce that provision of law may stop or detain the person whom	13936
the officer has reasonable cause to believe was operating the	13937
motor vehicle in violation of the division or section and, after	13938
investigating the circumstances surrounding the operation of the	13939
vehicle, may arrest and detain the person.	13940

(D) If a sheriff, deputy sheriff, marshal, deputy marshal,	13941
municipal police officer, member of a police force employed by a	13942
metropolitan housing authority under division (D) of section	13943
3735.31 of the Revised Code, member of a police force employed by	13944
a regional transit authority under division (Y) of section 306.35	13945
of the Revised Code, special police officer employed by a port	13946
authority under section 4582.04 or 4582.28 of the Revised Code,	13947
township constable, police officer of a township or joint township	13948
police district, state university law enforcement officer	13949
appointed under section 3345.04 of the Revised Code, peace officer	13950
of the department of natural resources, individual designated to	13951
perform law enforcement duties under section 511.232, 1545.13, or	13952
6101.75 of the Revised Code, the house sergeant at arms if the	13953
house sergeant at arms has arrest authority pursuant to division	13954
(E)(1) of section 101.311 of the Revised Code, or an assistant	13955
house sergeant at arms is authorized by division (A) or (B) of	13956
this section to arrest and detain, within the limits of the	13957
political subdivision, metropolitan housing authority housing	13958
project, regional transit authority facilities or those areas of a	13959
municipal corporation that have been agreed to by a regional	13960
transit authority and a municipal corporation located within its	13961
territorial jurisdiction, port authority, college, or university	13962
in which the officer is appointed, employed, or elected or within	13963
the limits of the territorial jurisdiction of the peace officer, a	13964
person until a warrant can be obtained, the peace officer, outside	13965
the limits of that territory, may pursue, arrest, and detain that	13966
person until a warrant can be obtained if all of the following	13967
apply:	13968

(1) The pursuit takes place without unreasonable delay after	13969
the offense is committed;	13970

(2) The pursuit is initiated within the limits of the	13971
political subdivision, metropolitan housing authority housing	13972
project, regional transit authority facilities or those areas of a	13973
municipal corporation that have been agreed to by a regional	13974
transit authority and a municipal corporation located within its	13975
territorial jurisdiction, port authority, college, or university	13976
in which the peace officer is appointed, employed, or elected or	13977
within the limits of the territorial jurisdiction of the peace	13978
officer;	13979

(3) The offense involved is a felony, a misdemeanor of the	13980
first degree or a substantially equivalent municipal ordinance, a	13981
misdemeanor of the second degree or a substantially equivalent	13982
municipal ordinance, or any offense for which points are	13983
chargeable pursuant to section 4510.036 of the Revised Code.	13984

(E) In addition to the authority granted under division (A)	13985
or (B) of this section:	13986

(1) A sheriff or deputy sheriff may arrest and detain, until	13987
a warrant can be obtained, any person found violating section	13988
4503.11, 4503.21, or 4549.01, sections 4549.08 to 4549.12, section	13989
4549.62, or Chapter 4511. or 4513. of the Revised Code on the	13990
portion of any street or highway that is located immediately	13991
adjacent to the boundaries of the county in which the sheriff or	13992
deputy sheriff is elected or appointed.	13993

(2) A member of the police force of a township police	13994
district created under section 505.48 of the Revised Code, a	13995
member of the police force of a joint township police district	13996
created under section 505.481 of the Revised Code, or a township	13997
constable appointed in accordance with section 509.01 of the	13998
Revised Code, who has received a certificate from the Ohio peace	13999
officer training commission under section 109.75 of the Revised	14000
Code, may arrest and detain, until a warrant can be obtained, any	14001
person found violating any section or chapter of the Revised Code	14002
listed in division (E)(1) of this section, other than sections	14003
4513.33 and 4513.34 of the Revised Code, on the portion of any	14004
street or highway that is located immediately adjacent to the	14005
boundaries of the township police district or joint township	14006
police district, in the case of a member of a township police	14007
district or joint township police district police force, or the	14008
unincorporated territory of the township, in the case of a	14009
township constable. However, if the population of the township	14010
that created the township police district served by the member's	14011
police force, or the townships that created the joint township	14012
police district served by the member's police force, or the	14013
township that is served by the township constable, is sixty	14014
thousand or less, the member of the township police district or	14015
joint police district police force or the township constable may	14016
not make an arrest under division (E)(2) of this section on a	14017
state highway that is included as part of the interstate system.	14018

(3) A police officer or village marshal appointed, elected,	14019
or employed by a municipal corporation may arrest and detain,	14020
until a warrant can be obtained, any person found violating any	14021
section or chapter of the Revised Code listed in division (E)(1)	14022
of this section on the portion of any street or highway that is	14023
located immediately adjacent to the boundaries of the municipal	14024
corporation in which the police officer or village marshal is	14025
appointed, elected, or employed.	14026

(4) A peace officer of the department of natural resources	14027
or an individual designated to perform law enforcement duties	14028
under section 511.232, 1545.13, or 6101.75 of the Revised Code may	14029
arrest and detain, until a warrant can be obtained, any person	14030
found violating any section or chapter of the Revised Code listed	14031
in division (E)(1) of this section, other than sections 4513.33	14032
and 4513.34 of the Revised Code, on the portion of any street or	14033
highway that is located immediately adjacent to the boundaries of	14034
the lands and waters that constitute the territorial jurisdiction	14035
of the peace officer.	14036

(F)(1) A department of mental health special police officer	14037
or a department of mental retardation and developmental	14038
disabilities special police officer may arrest without a warrant	14039
and detain until a warrant can be obtained any person found	14040
committing on the premises of any institution under the	14041
jurisdiction of the particular department a misdemeanor under a	14042
law of the state.	14043

A department of mental health special police officer or a	14044
department of mental retardation and developmental disabilities	14045
special police officer may arrest without a warrant and detain	14046
until a warrant can be obtained any person who has been	14047
hospitalized, institutionalized, or confined in an institution	14048
under the jurisdiction of the particular department pursuant to or	14049
under authority of section 2945.37, 2945.371, 2945.38, 2945.39,	14050
2945.40, 2945.401, or 2945.402 of the Revised Code and who is	14051
found committing on the premises of any institution under the	14052
jurisdiction of the particular department a violation of section	14053
2921.34 of the Revised Code that involves an escape from the	14054
premises of the institution.	14055

(2)(a) If a department of mental health special police	14056
officer or a department of mental retardation and developmental	14057
disabilities special police officer finds any person who has been	14058
hospitalized, institutionalized, or confined in an institution	14059
under the jurisdiction of the particular department pursuant to or	14060
under authority of section 2945.37, 2945.371, 2945.38, 2945.39,	14061
2945.40, 2945.401, or 2945.402 of the Revised Code committing a	14062
violation of section 2921.34 of the Revised Code that involves an	14063
escape from the premises of the institution, or if there is	14064
reasonable ground to believe that a violation of section 2921.34	14065
of the Revised Code has been committed that involves an escape	14066
from the premises of an institution under the jurisdiction of the	14067
department of mental health or the department of mental	14068
retardation and developmental disabilities and if a department of	14069
mental health special police officer or a department of mental	14070
retardation and developmental disabilities special police officer	14071
has reasonable cause to believe that a particular person who has	14072
been hospitalized, institutionalized, or confined in the	14073
institution pursuant to or under authority of section 2945.37,	14074
2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or 2945.402 of the	14075
Revised Code is guilty of the violation, the special police	14076
officer, outside of the premises of the institution, may pursue,	14077
arrest, and detain that person for that violation of section	14078
2921.34 of the Revised Code, until a warrant can be obtained, if	14079
both of the following apply:	14080

(i) The pursuit takes place without unreasonable delay after	14081
the offense is committed;	14082

(ii) The pursuit is initiated within the premises of the	14083
institution from which the violation of section 2921.34 of the	14084
Revised Code occurred.	14085

(b) For purposes of division (F)(2)(a) of this section, the	14086
execution of a written statement by the administrator of the	14087
institution in which a person had been hospitalized,	14088
institutionalized, or confined pursuant to or under authority of	14089
section 2945.37, 2945.371, 2945.38, 2945.39, 2945.40, 2945.401, or	14090
2945.402 of the Revised Code alleging that the person has escaped	14091
from the premises of the institution in violation of section	14092
2921.34 of the Revised Code constitutes reasonable ground to	14093
believe that the violation was committed and reasonable cause to	14094
believe that the person alleged in the statement to have committed	14095
the offense is guilty of the violation.	14096

(G) As used in this section:

14097

(1) A "department of mental health special police officer"	14098
means a special police officer of the department of mental health	14099
designated under section 5119.14 of the Revised Code who is	14100
certified by the Ohio peace officer training commission under	14101
section 109.77 of the Revised Code as having successfully	14102
completed an approved peace officer basic training program.	14103

(2) A "department of mental retardation and developmental	14104
disabilities special police officer" means a special police	14105
officer of the department of mental retardation and developmental	14106
disabilities designated under section 5123.13 of the Revised Code	14107
who is certified by the Ohio peace officer training council under	14108
section 109.77 of the Revised Code as having successfully	14109
completed an approved peace officer basic training program.	14110

(3) "Deadly weapon" has the same meaning as in section	14111
2923.11 of the Revised Code.	14112

(4) "Family or household member" has the same meaning as in	14113
section 2919.25 of the Revised Code.	14114

(5) "Street" or "highway" has the same meaning as in section	14115
4511.01 of the Revised Code.	14116

(6) "Interstate system" has the same meaning as in section	14117
5516.01 of the Revised Code.	14118

(7) "Peace officer of the department of natural resources"	14119
means an employee of the department of natural resources who is a	14120
natural resources law enforcement staff officer designated	14121
pursuant to section 1501.013, a forest officer designated pursuant	14122
to section 1503.29, a preserve officer designated pursuant to	14123
section 1517.10, a wildlife officer designated pursuant to section	14124
1531.13, a park officer designated pursuant to section 1541.10, or	14125
a state watercraft officer designated pursuant to section 1547.521	14126
of the Revised Code.	14127

Section 1.05. That the existing version of section 2935.03 of	14128
the Revised Code that is scheduled to take effect January 1, 2004,	14129
is hereby repealed.	14130

Section 1.06. Sections 1.04 and 1.05 of this act shall take	14131
effect January 1, 2004.	14132

Section 1.07. That the versions of sections 5739.026 and	14133
5739.033 of the Revised Code that are scheduled to take effect	14134
July 1, 2003, be amended to read as follows:	14135

Sec. 5739.026.  (A) A board of county commissioners may levy	14136
a tax of one-fourth or one-half of one per cent on every retail	14137
sale in the county, except sales of watercraft and outboard motors	14138
required to be titled pursuant to Chapter 1548. of the Revised	14139
Code and sales of motor vehicles, and may increase an existing	14140
rate of one-fourth of one per cent to one-half of one per cent, to	14141
pay the expenses of administering the tax and, except as provided	14142
in division (A)(6) of this section, for any one or more of the	14143
following purposes provided that the aggregate levy for all such	14144
purposes does not exceed one-half of one per cent:	14145

(1) To provide additional revenues for the payment of bonds	14146
or notes issued in anticipation of bonds issued by a convention	14147
facilities authority established by the board of county	14148
commissioners under Chapter 351. of the Revised Code and to	14149
provide additional operating revenues for the convention	14150
facilities authority;	14151

(2) To provide additional revenues for a transit authority	14152
operating in the county;	14153

(3) To provide additional revenue for the county's general	14154
fund;	14155

(4) To provide additional revenue for permanent improvements	14156
within the county to be distributed by the community improvements	14157
board in accordance with section 307.283 and to pay principal,	14158
interest, and premium on bonds issued under section 307.284 of the	14159
Revised Code;	14160

(5) To provide additional revenue for the acquisition,	14161
construction, equipping, or repair of any specific permanent	14162
improvement or any class or group of permanent improvements, which	14163
improvement or class or group of improvements shall be enumerated	14164
in the resolution required by division (D) of this section, and to	14165
pay principal, interest, premium, and other costs associated with	14166
the issuance of bonds or notes in anticipation of bonds issued	14167
pursuant to Chapter 133. of the Revised Code for the acquisition,	14168
construction, equipping, or repair of the specific permanent	14169
improvement or class or group of permanent improvements;	14170

(6) To provide revenue for the implementation and operation	14171
of a 9-1-1 system in the county. If the tax is levied or the rate	14172
increased exclusively for such purpose, the tax shall not be	14173
levied or the rate increased for more than five years. At the end	14174
of the last year the tax is levied or the rate increased, any	14175
balance remaining in the special fund established for such purpose	14176
shall remain in that fund and be used exclusively for such purpose	14177
until the fund is completely expended, and, notwithstanding	14178
section 5705.16 of the Revised Code, the board of county	14179
commissioners shall not petition for the transfer of money from	14180
such special fund, and the tax commissioner shall not approve such	14181
a petition.	14182

If the tax is levied or the rate increased for such purpose	14183
for more than five years, the board of county commissioners also	14184
shall levy the tax or increase the rate of the tax for one or more	14185
of the purposes described in divisions (A)(1) to (5) of this	14186
section and shall prescribe the method for allocating the revenues	14187
from the tax each year in the manner required by division (C) of	14188
this section.	14189

(7) To provide additional revenue for the operation or	14190
maintenance of a detention facility, as that term is defined under	14191
division (F) of section 2921.01 of the Revised Code;	14192

(8) To provide revenue to finance the construction or	14193
renovation of a sports facility, but only if the tax is levied for	14194
that purpose in the manner prescribed by section 5739.028 of the	14195
Revised Code.	14196

As used in division (A)(8) of this section:

14197

(a) "Sports facility" means a facility intended to house	14198
major league professional athletic teams.	14199

(b) "Constructing" or "construction" includes providing	14200
fixtures, furnishings, and equipment.	14201

(9) To provide additional revenue for the acquisition of	14202
agricultural easements, as defined in section 5301.67 of the	14203
Revised Code; to pay principal, interest, and premium on bonds	14204
issued under section 133.60 of the Revised Code; and for the	14205
supervision and enforcement of agricultural easements held by the	14206
county.	14207

Pursuant to section 755.171 of the Revised Code, a board of	14208
county commissioners may pledge and contribute revenue from a tax	14209
levied for the purpose of division (A)(5) of this section to the	14210
payment of debt charges on bonds issued under section 755.17 of	14211
the Revised Code.	14212

The rate of tax shall be a multiple of one-fourth of one per	14213
cent, unless a portion of the rate of an existing tax levied under	14214
section 5739.023 of the Revised Code has been reduced, and the	14215
rate of tax levied under this section has been increased, pursuant	14216
to section 5739.028 of the Revised Code, in which case the	14217
aggregate of the rates of tax levied under this section and	14218
section 5739.023 of the Revised Code shall be a multiple of	14219
one-fourth of one per cent. The tax shall be levied and the rate	14220
increased pursuant to a resolution adopted by a majority of the	14221
members of the board.	14222

Prior to the adoption of any resolution to levy the tax or to	14223
increase the rate of tax exclusively for the purpose set forth in	14224
division (A)(3) of this section, the board of county commissioners	14225
shall conduct two public hearings on the resolution, the second	14226
hearing to be no fewer than three nor more than ten days after the	14227
first. Notice of the date, time, and place of the hearings shall	14228
be given by publication in a newspaper of general circulation in	14229
the county once a week on the same day of the week for two	14230
consecutive weeks, the second publication being no fewer than ten	14231
nor more than thirty days prior to the first hearing. Except as	14232
provided in division (E) of this section, the resolution shall	14233
become effective on the first day of a calendar quarter	14234
following the expiration of sixty days from the date of its	14235
adoption, subject to a referendum as provided in sections 305.31	14236
to 305.41 of the Revised Code. If the resolution is adopted as an	14237
emergency measure necessary for the immediate preservation of the	14238
public peace, health, or safety, it must receive an affirmative	14239
vote of all of the members of the board of county commissioners	14240
and shall state the reasons for the necessity.	14241

If the tax is for more than one of the purposes set forth in	14242
divisions (A)(1) to (7) and (9) of this section or is exclusively	14243
for one of the purposes set forth in division (A)(1), (2), (4),	14244
(5), (6), (7), or (9) of this section, the resolution shall not go	14245
into effect unless it is approved by a majority of the electors	14246
voting on the question of the tax.	14247

(B) The board of county commissioners shall adopt a	14248
resolution under section 351.02 of the Revised Code creating the	14249
convention facilities authority, or under section 307.283 of the	14250
Revised Code creating the community improvements board, before	14251
adopting a resolution levying a tax for the purpose of a	14252
convention facilities authority under division (A)(1) of this	14253
section or for the purpose of a community improvements board under	14254
division (A)(4) of this section.	14255

(C)(1) If the tax is to be used for more than one of the	14256
purposes set forth in divisions (A)(1) to (7) and (9) of this	14257
section, the board of county commissioners shall establish the	14258
method that will be used to determine the amount or proportion of	14259
the tax revenue received by the county during each year that will	14260
be distributed for each of those purposes, including, if	14261
applicable, provisions governing the reallocation of a convention	14262
facilities authority's allocation if the authority is dissolved	14263
while the tax is in effect. The allocation method may provide	14264
that different proportions or amounts of the tax shall be	14265
distributed among the purposes in different years, but it shall	14266
clearly describe the method that will be used for each year.	14267
Except as otherwise provided in division (C)(2) of this section,	14268
the allocation method established by the board is not subject to	14269
amendment during the life of the tax.	14270

(2) Subsequent to holding a public hearing on the proposed	14271
amendment, the board of county commissioners may amend the	14272
allocation method established under division (C)(1) of this	14273
section for any year, if the amendment is approved by the	14274
governing board of each entity whose allocation for the year would	14275
be reduced by the proposed amendment. In the case of a tax that	14276
is levied for a continuing period of time, the board may not so	14277
amend the allocation method for any year before the sixth year	14278
that the tax is in effect.	14279

(a) If the additional revenues provided to the convention	14280
facilities authority are pledged by the authority for the payment	14281
of convention facilities authority revenue bonds for as long as	14282
such bonds are outstanding, no reduction of the authority's	14283
allocation of the tax shall be made for any year except to the	14284
extent that the reduced authority allocation, when combined with	14285
the authority's other revenues pledged for that purpose, is	14286
sufficient to meet the debt service requirements for that year on	14287
such bonds.	14288

(b) If the additional revenues provided to the county are	14289
pledged by the county for the payment of bonds or notes described	14290
in division (A)(4) or (5) of this section, for as long as such	14291
bonds or notes are outstanding, no reduction of the county's or	14292
the community improvements board's allocation of the tax shall be	14293
made for any year, except to the extent that the reduced county or	14294
community improvements board allocation is sufficient to meet the	14295
debt service requirements for that year on such bonds or notes.	14296

(c) If the additional revenues provided to the transit	14297
authority are pledged by the authority for the payment of revenue	14298
bonds issued under section 306.37 of the Revised Code, for as long	14299
as such bonds are outstanding, no reduction of the authority's	14300
allocation of tax shall be made for any year, except to the extent	14301
that the authority's reduced allocation, when combined with the	14302
authority's other revenues pledged for that purpose, is sufficient	14303
to meet the debt service requirements for that year on such bonds.	14304

(d) If the additional revenues provided to the county are	14305
pledged by the county for the payment of bonds or notes issued	14306
under section 133.60 of the Revised Code, for so long as the bonds	14307
or notes are outstanding, no reduction of the county's allocation	14308
of the tax shall be made for any year, except to the extent that	14309
the reduced county allocation is sufficient to meet the debt	14310
service requirements for that year on the bonds or notes.	14311

(D)(1) The resolution levying the tax or increasing the rate	14312
of tax shall state the rate of the tax or the rate of the	14313
increase; the purpose or purposes for which it is to be levied;	14314
the number of years for which it is to be levied or that it is for	14315
a continuing period of time; the allocation method required by	14316
division (C) of this section; and if required to be submitted to	14317
the electors of the county under division (A) of this section, the	14318
date of the election at which the proposal shall be submitted to	14319
the electors of the county, which shall be not less than	14320
seventy-five days after the certification of a copy of the	14321
resolution to the board of elections and, if the tax is to be	14322
levied exclusively for the purpose set forth in division (A)(3) of	14323
this section, shall not occur in February or August of any year.	14324
Upon certification of the resolution to the board of elections,	14325
the board of county commissioners shall notify the tax	14326
commissioner in writing of the levy question to be submitted to	14327
the electors. If approved by a majority of the electors, the tax	14328
shall become effective on the first day of a calendar quarter	14329
next following the sixtieth day following the certification of	14330
the results of the election to the board of county commissioners	14331
and the tax commissioner by the board of elections, except as	14332
provided in division (E) of this section.	14333

(2)(a) A resolution specifying that the tax is to be used	14334
exclusively for the purpose set forth in division (A)(3) of this	14335
section that is not adopted as an emergency measure may direct the	14336
board of elections to submit the question of levying the tax or	14337
increasing the rate of the tax to the electors of the county at a	14338
special election held on the date specified by the board of county	14339
commissioners in the resolution, provided that the election occurs	14340
not less than seventy-five days after the resolution is certified	14341
to the board of elections and the election is not held in February	14342
or August of any year. Upon certification of the resolution to	14343
the board of elections, the board of county commissioners shall	14344
notify the tax commissioner in writing of the levy question to be	14345
submitted to the electors. No resolution adopted under division	14346
(D)(2)(a) of this section shall go into effect unless approved by	14347
a majority of those voting upon it and, except as provided in	14348
division (E) of this section, not until the first day of a	14349
calendar quarter following the expiration of sixty days from the	14350
date of the notice to the tax commissioner by the board of	14351
elections of the affirmative vote.	14352

(b) A resolution specifying that the tax is to be used	14353
exclusively for the purpose set forth in division (A)(3) of this	14354
section that is adopted as an emergency measure shall become	14355
effective as provided in division (A) of this section, but may	14356
direct the board of elections to submit the question of repealing	14357
the tax or increase in the rate of the tax to the electors of the	14358
county at the next general election in the county occurring not	14359
less than seventy-five days after the resolution is certified to	14360
the board of elections. Upon certification of the resolution to	14361
the board of elections, the board of county commissioners shall	14362
notify the tax commissioner in writing of the levy question to be	14363
submitted to the electors. The ballot question shall be the same	14364
as that prescribed in section 5739.022 of the Revised Code. The	14365
board of elections shall notify the board of county commissioners	14366
and the tax commissioner of the result of the election immediately	14367
after the result has been declared. If a majority of the	14368
qualified electors voting on the question of repealing the tax or	14369
increase in the rate of the tax vote for repeal of the tax or	14370
repeal of the increase, the board of county commissioners, on the	14371
first day of a calendar quarter following the expiration of	14372
sixty days after the date it received notice of the result of the	14373
election, shall, in the case of a repeal of the tax, cease to levy	14374
the tax, or, in the case of a repeal of an increase in the rate of	14375
the tax, cease to levy the increased rate and levy the tax at the	14376
rate at which it was imposed immediately prior to the increase in	14377
rate.	14378

(c) A board of county commissioners, by resolution, may	14379
reduce the rate of a tax levied exclusively for the purpose set	14380
forth in division (A)(3) of this section to a lower rate	14381
authorized by this section. Any such reduction shall be made	14382
effective on the first day of the calendar quarter specified in	14383
the resolution, but not sooner than the first day of the month	14384
next following the sixtieth day after the resolution is certified	14385
to the tax commissioner.	14386

(E) If a vendor that is registered with the central	14387
electronic registration system provided for in section 5740.05 of	14388
the Revised Code makes a sale in this state by printed catalog	14389
and the consumer computed the tax on the sale based on local rates	14390
published in the catalog, any tax levied or rate changed under	14391
this section shall not apply to such a sale until the first day of	14392
a calendar quarter following the expiration of one hundred twenty	14393
days from the date of notice by the tax commissioner to the	14394
vendor, or to the vendor's certified service provider, if the	14395
vendor has selected one.	14396

A board of county commissioners may by resolution reduce the	14397
rate of a tax levied under division (A)(3) of this section to a	14398
lower rate authorized by this section. Any such reduction shall	14399
be made effective on the first day of the month specified in the	14400
resolution but not sooner than the first day of the month next	14401
following the thirtieth day after certification of the resolution	14402
to the tax commissioner.	14403

(F) The tax levied pursuant to this section shall be in	14404
addition to the tax levied by section 5739.02 of the Revised Code	14405
and any tax levied pursuant to section 5739.021 or 5739.023 of the	14406
Revised Code.	14407

A county that levies a tax pursuant to this section shall	14408
levy a tax at the same rate pursuant to section 5741.023 of the	14409
Revised Code.	14410

The additional tax levied by the county shall be collected	14411
pursuant to section 5739.025 of the Revised Code.	14412

Any tax levied pursuant to this section is subject to the	14413
exemptions provided in section 5739.02 of the Revised Code and in	14414
addition shall not be applicable to sales not within the taxing	14415
power of a county under the Constitution of the United States or	14416
the Ohio Constitution.	14417

Sec. 5739.033.  The amount of tax due pursuant to sections	14418
5739.02, 5739.021, 5739.023, and 5739.026 of the Revised Code is	14419
the sum of the taxes imposed pursuant to those sections at the	14420
situs of the sale as determined under this section or, if	14421
applicable, under division (C) of section 5739.031 of the Revised	14422
Code.	14423

(A) Except for sales of titled motor vehicles, titled	14424
watercraft, or titled outboard motors as provided in section	14425
5741.05 of the Revised Code, or as otherwise provided in this	14426
section,and section 5739.034 of the Revised Code, the situs of	14427
all sales is the vendor's place of business.	14428

(1) If the consumer or the consumer's donee receives	14429
tangible personal property or a service at a place of business of	14430
the vendor, the situs of the sale is conclusively determined to be	14431
that place of business.	14432

(2) When the tangible personal property or service is not	14433
received at a vendor's place of business, the situs of the sale is	14434
conclusively determined to be consummated at the location where	14435
the consumer or a donee designated by the consumer receives the	14436
tangible personal property or service, including the location	14437
indicated by instructions for delivery to the consumer or the	14438
consumer's donee, known to the vendor.	14439

(3) If divisions (A)(1) and (2) of this section do not	14440
apply, the situs of the sale is conclusively determined to be	14441
consummated at the location indicated by an address for the	14442
consumer that is available from the business records of the vendor	14443
that are maintained in the ordinary course of the vendor's	14444
business when use of that address does not constitute bad faith.	14445

(4) If divisions (A)(1), (2), and (3) of this section do not	14446
apply, the situs of the sale is conclusively determined to be	14447
consummated at the location indicated by an address for the	14448
consumer obtained during the consummation of the sale, including	14449
the address associated with the consumer's payment instrument, if	14450
no other address is available, when use of that address does not	14451
constitute bad faith.	14452

(5) If divisions (A)(1), (2), (3), and (4) of this section	14453
do not apply, including in the circumstance where the vendor is	14454
without sufficient information to apply any of those divisions,	14455
the situs of the sale is conclusively determined to be consummated	14456
at the address from which tangible personal property was shipped,	14457
or from which the service was provided, disregarding any location	14458
that merely provided the electronic transfer of the property sold	14459
or service provided.	14460

(6) As used in division (A) of this section, "receive" means	14461
taking possession of tangible personal property or making first	14462
use of a service. "Receive" does not include possession by a	14463
shipping company on behalf of a consumer.	14464

(B)(1) Notwithstanding divisions (A)(1) to (5) of this	14465
section, a manufacturer or other consumer that is not a holder of	14466
a direct payment permit granted under section 5739.031 of the	14467
Revised Code, that purchases tangible personal property or a	14468
service for use in business, and that knows at the time of	14469
purchase that the property or service will be concurrently	14470
available for use in more than one taxing jurisdiction shall	14471
deliver to the vendor in conjunction with its purchase a multiple	14472
points of use exemption form prescribed by the tax commissioner	14473
disclosing this fact. On receipt of the multiple points of use	14474
exemption form, the vendor is relieved of its obligation to	14475
collect, pay, or remit the tax due, and the consumer must collect,	14476
pay, or remit the tax directly to the state.	14477

(2) A consumer that delivers such form to a vendor may use	14478
any reasonable, consistent, and uniform method of apportioning the	14479
tax due on the tangible personal property or service that is	14480
supported by the consumer's business records as they existed at	14481
the time of the sale.	14482

(3) The multiple points of use exemption form shall remain	14483
in effect for all future sales by the vendor to the consumer until	14484
it is revoked in writing by the consumer, except as to the	14485
consumer's specific apportionment of a subsequent sale under	14486
division (B) of this section and the facts existing at the time of	14487
the sale.	14488

(C) A person who holds a direct payment permit issued under	14489
section 5739.031 of the Revised Code is not required to deliver a	14490
multiple points of use exemption form to a vendor. But such	14491
permit holder shall comply with division (B)(2) of this section in	14492
apportioning the tax due on tangible personal property or a	14493
service that will be concurrently available for use in more than	14494
one taxing jurisdiction.	14495

(D) Except as provided in division (F) or J of this section:

14496

(1) If the vendor provides a service specified in division	14497
(B)(3)(f) or (i) of section 5739.01 of the Revised Code, the situs	14498
of the sale is the location of the telephone number or account as	14499
reflected in the records of the vendor.	14500

(2) In the case of a telecommunications service, if the	14501
telephone number or account is located outside this state, the	14502
situs of the sale is the location in this state from which the	14503
service originated.	14504

(E) If the vendor provides lodging to transient guests as	14505
specified in division (B)(2) of section 5739.01 of the Revised	14506
Code, the situs of the sale is the location where the lodging is	14507
located.	14508

(F) Except as otherwise provided in this division, if the	14509
vendor sells a prepaid authorization number or a prepaid telephone	14510
calling card, the situs of the sale is the vendor's place of	14511
business and shall be taxed at the time of sale. If the vendor	14512
sells a prepaid authorization number or prepaid telephone calling	14513
card through a telephone call, electronic commerce, or any other	14514
form of remote commerce, the situs of the sale is the consumer's	14515
shipping address, or, if there is no item shipped, at the	14516
consumer's billing address.	14517

Section 1.08. That the existing versions of sections 5739.026	14518
and 5739.033 of the Revised Code that are scheduled to take effect	14519
July 1, 2003, are hereby repealed.	14520

Section 1.09. Sections 1.07 and 1.08 of this act take effect	14521
July 1, 2003.	14522

Section 2.01.  The items set forth in this section are hereby	14523
appropriated out of any moneys in the state treasury to the credit	14524
of the Public School Building Fund (Fund 021), that are not	14525
otherwise appropriated.	14526

Appropriations

SFC SCHOOL FACILITIES COMMISSION

14527

Section 2.02. PUBLIC SCHOOL BUILDING FUND

14532

The Controlling Board, when requested to do so by the	14533
Executive Director of the Ohio School Facilities Commission, may	14534
increase appropriations in the Public School Building Fund (Fund	14535
021), based on revenues received by the fund, including cash	14536
transfers and interest that may accrue to the fund.	14537

Section 3.01.  The items set forth in this section are hereby	14538
appropriated out of any moneys in the state treasury to the credit	14539
of the Highway Safety Fund (Fund 036), that are not otherwise	14540
appropriated.	14541

Appropriations

DHS DEPARTMENT OF PUBLIC SAFETY

14542

Section 4.01.  All items set forth in this section are hereby	14549
appropriated out of any moneys in the state treasury to the credit	14550
of the Waterways Safety Fund (Fund 086), that are not otherwise	14551
appropriated.	14552

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES

14553

Section 5.01.  All items set forth in this section are hereby	14559
appropriated out of any moneys in the state treasury to the credit	14560
of the Special Administrative Fund (Fund 4A9) that are not	14561
otherwise appropriated.	14562

Appropriations

JFS DEPARTMENT OF JOB AND FAMILY SERVICES

14563

CENTRAL OFFICE BUILDING RENOVATIONS SPENDING AND REPAYMENT	14567
PLAN	14568

Funds appropriated in the foregoing appropriation item	14569
CAP-702, Central Office Building Renovations, are to be released	14570
for expenditure only after approval of the Unemployment	14571
Compensation Advisory Council created under section 4141.08 of the	14572
Revised Code. The amount to be released shall be based on a	14573
spending plan, which may include a repayment schedule, approved by	14574
the Council. Once approval is received, the Director of Job and	14575
Family Services shall request the Director of Budget and	14576
Management or the Controlling Board to release the appropriation.	14577

Section 6.01. The items set forth in this section are hereby	14578
appropriated out of any moneys in the state treasury to the credit	14579
of the State Fire Marshal Fund (Fund 546), that are not otherwise	14580
appropriated.	14581

Appropriations

COM DEPARTMENT OF COMMERCE

14582

Section 7.01.  The items set forth in this section are hereby	14588
appropriated out of any moneys in the state treasury to the credit	14589
of the Veterans' Home Improvement Fund (Fund 604) that are not	14590
otherwise appropriated.	14591

Appropriations

OVH OHIO VETERANS' HOME AGENCY

14592

Section 8.01. All items set forth in this section are hereby	14603
appropriated out of any moneys in the state treasury to the credit	14604
of the Clean Ohio Revitalization Fund (Fund 003) that are not	14605
otherwise appropriated.	14606

Appropriations

DEV DEPARTMENT OF DEVELOPMENT

14607

Section 8.02. The Treasurer of State is hereby authorized to	14613
issue and sell, in accordance with Section 2o of Article VIII,	14614
Ohio Constitution, and pursuant to sections 151.01 and 151.40 of	14615
the Revised Code, original obligations in an aggregate principal	14616
amount not to exceed $50,000,000, in addition to the original	14617
issuance of obligations heretofore authorized by prior acts of the	14618
General Assembly. These authorized obligations shall be issued,	14619
subject to applicable constitutional and statutory limitations, as	14620
needed to ensure sufficient moneys to the credit of the Clean Ohio	14621
Revitalization Fund (Fund 003) to pay costs of revitalization	14622
projects as referred to in sections 151.01 and 151.40 of the	14623
Revised Code.	14624

Section 9.01.  All items set forth in this section are hereby	14625
appropriated out of any money in the state treasury to the credit	14626
of the Sports Facilities Building Fund (Fund 024) that are not	14627
otherwise appropriated.	14628

Appropriations

AFC OHIO ARTS AND SPORTS FACILITIES COMMISSION

14629

REDS HALL OF FAME

14636

The foregoing appropriation item CAP-025, Reds Hall of Fame,	14637
shall be included within the $81 million not-to-exceed amount	14638
established in Am. H.B. 748 of the 121st General Assembly for	14639
appropriation item CAP-025. In accordance with Chapter 3383. of	14640
the Revised Code, state funds shall be used for up to fifteen per	14641
cent of the initial estimated cost of construction of the Hall of	14642
Fame, as determined by the Ohio Arts and Sports Facilities	14643
Commission. Any remaining funds shall be used for other	14644
preapproved components of the improvements project that meet the	14645
requirements of Chapter 3383. of the Revised Code, as determined	14646
by the Arts and Sports Facilities Commission.	14647

Section 9.02.  The Ohio Building Authority is hereby	14648
authorized to issue and sell, in accordance with the provisions of	14649
Section 2i of Article VIII, Ohio Constitution, and Chapter 152.	14650
and other applicable sections of the Revised Code, original	14651
obligations in an aggregate principal amount not to exceed	14652
$5,000,000, in addition to the original issuance of obligations	14653
heretofore authorized by prior acts of the General Assembly. The	14654
authorized obligations shall be issued, subject to applicable	14655
constitutional and statutory limitations, to pay the costs of	14656
capital facilities, as defined in division (J) of section 3383.01	14657
of the Revised Code (Ohio sports facilities).	14658

Section 10.01.  All items set forth in this section are	14659
hereby appropriated out of any moneys in the state treasury to the	14660
credit of the Highway Safety Building Fund (Fund 025) that are not	14661
otherwise appropriated.	14662

Appropriations

DHS DEPARTMENT OF PUBLIC SAFETY

14663

Section 10.02.  The Ohio Building Authority is hereby	14668
authorized to issue and sell, in accordance with Section 2i of	14669
Article VIII, Ohio Constitution, and Chapter 152. and other	14670
applicable sections of the Revised Code, original obligations in	14671
an aggregate principal amount not to exceed $1,000,000, in	14672
addition to the original issuance of obligations heretofore	14673
authorized by prior acts of the General Assembly. The authorized	14674
obligations shall be issued, subject to applicable constitutional	14675
and statutory limitations, to pay the costs associated with	14676
previously authorized capital facilities and the capital	14677
facilities referred to in Section 10.01 of this act for the	14678
Department of Public Safety.	14679

Notwithstanding any provision of law to the contrary, at any	14680
time prior to the sale of obligations authorized in this section,	14681
the Director of Budget and Management, with the written	14682
concurrence of the Director of Public Safety, may transfer cash	14683
temporarily from the Highway Safety Fund (Fund 036) to the Highway	14684
Safety Building Fund (Fund 025), where such cash may be used to	14685
fund the projects appropriated in Section 10.01 of this act. At	14686
such time as the obligations authorized in this section are sold,	14687
the Director of Budget and Management shall transfer from the	14688
Highway Safety Building Fund to the Highway Safety Fund any	14689
amounts originally transferred to the Highway Safety Building Fund	14690
under this section.	14691

Section 11.01.  All items set forth in Sections 11.02 to	14692
11.14 of this act are hereby appropriated out of any moneys in the	14693
state treasury to the credit of the Administrative Building Fund	14694
(Fund 026) that are not otherwise appropriated.	14695

Appropriations

Section 11.02.  ADJ ADJUTANT GENERAL

14696

Appropriations

Section 11.03.  DAS DEPARTMENT OF ADMINISTRATIVE SERVICES

14711

MARCS STEERING COMMITTEE AND STATEWIDE COMMUNICATIONS SYSTEM

14726

There is hereby continued a Multi-Agency Radio Communications	14727
System (MARCS) Steering Committee consisting of the Directors of	14728
Administrative Services, Public Safety, Natural Resources,	14729
Transportation, Rehabilitation and Correction, and Budget and	14730
Management or their designees. The Director of Administrative	14731
Services or the director's designee shall chair the committee. The	14732
committee shall provide assistance to the Director of	14733
Administrative Services for effective and efficient implementation	14734
of the MARCS system as well as develop policies for the ongoing	14735
management of the system. Upon dates prescribed by the Directors	14736
of Administrative Services and Budget and Management, the MARCS	14737
Steering Committee shall report to the directors as to the	14738
progress of MARCS implementation and the development of policies	14739
related to the system.	14740

The foregoing appropriation item CAP-827, Statewide	14741
Communications System, shall be used to purchase or construct the	14742
components of the Multi-Agency Radio Communications System (MARCS)	14743
that are not specific to any one agency. The equipment may	14744
include, but is not limited to, multi-agency equipment at the	14745
Emergency Operations Center/Joint Dispatch Facility, computer and	14746
telecommunication equipment used for the functioning and	14747
integration of the system, communications towers, tower sites, and	14748
tower equipment, and linkages among towers and between towers and	14749
the State of Ohio Network for Integrated Communication (SONIC)	14750
system. The Director of Administrative Services shall, with the	14751
concurrence of the MARCS Steering Committee, determine the	14752
specific use of funds.	14753

Spending from this appropriation item shall not be subject to	14754
the requirements of Chapters 123. and 153. of the Revised Code.	14755

ENERGY CONSERVATION PROJECTS

14756

The foregoing appropriation item CAP-835, Energy Conservation	14757
Projects, shall be used to perform energy conservation	14758
renovations, including the United States Environmental Protection	14759
Agency's Greenlights Program, in state-owned facilities. Prior to	14760
the release of funds for renovation, state agencies shall have	14761
performed a comprehensive energy audit for each project. The	14762
Department of Administrative Services shall review and approve	14763
proposals from state agencies to use these funds for energy	14764
conservation.	14765

Public school districts and state-supported and	14766
state-assisted institutions of higher education are not eligible	14767
for funding from this item.	14768

Appropriations

Section 11.04.  AGR DEPARTMENT OF AGRICULTURE

14769

Appropriations

Section 11.05.  CSR CAPITOL SQUARE REVIEW AND ADVISORY BOARD

14774

Appropriations

Section 11.06.  EXP EXPOSITIONS COMMISSION

14779

Appropriations

Section 11.07. DOH DEPARTMENT OF HEALTH

14787

Appropriations

Section 11.08.  DNR DEPARTMENT OF NATURAL RESOURCES

14791

Appropriations

Section 11.09.  DHS DEPARTMENT OF PUBLIC SAFETY

14795

Appropriations

Section 11.10.  JSC JUDICIARY/SUPREME COURT

14800

EXEMPT FROM PER CENT FOR ARTS PROGRAM

14803

The foregoing appropriation item CAP-001, Ohio Courts	14804
Building Renovations, shall be exempt from section 3379.10 of the	14805
Revised Code, the Per Cent for Arts Program.	14806

Appropriations

Section 11.11.  OSB SCHOOL FOR THE BLIND

14807

Appropriations

Section 11.12.  OSD SCHOOL FOR THE DEAF

14813

Section 11.13. SOS SECRETARY OF STATE

14820

VOTING MACHINES

14823

The foregoing appropriation item CAP-002, Voting Machines,	14824
shall be used to purchase upgraded voting equipment. Appropriation	14825
item CAP-002, Voting Machines, shall match federal funds provided	14826
through the Help America Vote Act of 2002.	14827

Section 11.14. OVH OHIO VETERANS' HOME AGENCY

14828

Section 11.15.  The Ohio Building Authority is hereby	14833
authorized to issue and sell, in accordance with Section 2i of	14834
Article VIII, Ohio Constitution, and Chapter 152. and other	14835
applicable sections of the Revised Code, original obligations in	14836
an aggregate principal amount not to exceed $68,000,000, in	14837
addition to the original issuance of obligations heretofore	14838
authorized by prior acts of the General Assembly. The authorized	14839
obligations shall be issued, subject to applicable constitutional	14840
and statutory limitations, to pay costs associated with previously	14841
authorized capital facilities and the capital facilities referred	14842
to in Sections 11.02 to 11.14 of this act.	14843

Section 12.01.  All items set forth in this section are	14844
hereby appropriated out of any moneys in the state treasury to the	14845
credit of the Adult Correctional Building Fund (Fund 027) that are	14846
not otherwise appropriated.	14847

Appropriations

DRC DEPARTMENT OF REHABILITATION AND CORRECTION

14848

STATEWIDE AND CENTRAL OFFICE PROJECTS

14849

PICKAWAY CORRECTIONAL INSTITUTION

14858

SOUTHERN OHIO CORRECTIONAL FACILITY

14861

Section 12.02.  The Ohio Building Authority is hereby	14868
authorized to issue and sell, in accordance with Section 2i of	14869
Article VIII, Ohio Constitution, and Chapter 152. and section	14870
307.021 of the Revised Code, original obligations in an aggregate	14871
principal amount not to exceed $25,000,000 in addition to the	14872
original issuance of obligations heretofore authorized by prior	14873
acts of the General Assembly. The authorized obligations shall be	14874
issued subject to applicable constitutional and statutory	14875
limitations, to pay costs associated with previously authorized	14876
capital facilities and the capital facilities referred to in	14877
Section 12.01 of this act for the Department of Rehabilitation and	14878
Correction.	14879

Section 13.01.  All items set forth in this section are	14880
hereby appropriated out of any moneys in the state treasury to the	14881
credit of the Juvenile Correctional Building Fund (Fund 028) that	14882
are not otherwise appropriated.	14883

Appropriations

DYS DEPARTMENT OF YOUTH SERVICES

14884

Section 13.02.  The Ohio Building Authority is hereby	14892
authorized to issue and sell, in accordance with Section 2i of	14893
Article VIII, Ohio Constitution, and Chapter 152. and other	14894
applicable sections of the Revised Code, original obligations in	14895
an aggregate principal amount not to exceed $5,000,000 in addition	14896
to the original issuance of obligations heretofore authorized by	14897
prior acts of the General Assembly. The authorized obligations	14898
shall be issued, subject to applicable constitutional and	14899
statutory limitations, to pay the costs associated with previously	14900
authorized capital facilities and the capital facilities referred	14901
to in Section 13.01 of this act for the Department of Youth	14902
Services.	14903

Section 14.01. All items set forth in this section are hereby	14904
appropriated out of any moneys in the state treasury to the credit	14905
of the Transportation Building Fund (Fund 029) that are not	14906
otherwise appropriated.	14907

Appropriations

DOT DEPARTMENT OF TRANSPORTATION

14908

Section 14.02. The amount of authorization to issue and sell	14913
obligations granted to the Ohio Building Authority by prior acts	14914
of the General Assembly pursuant to Section 2i of Article VIII,	14915
Ohio Constitution, and Chapter 152. of the Revised Code to pay	14916
costs of capital facilities or improvements for the Department of	14917
Transportation Building is reduced from $210,000,000 to	14918
$155,800,000.	14919

Section 15.01. All items set forth in this section are hereby	14920
appropriated out of any moneys in the state treasury to the credit	14921
of the Arts Facilities Building Fund (Fund 030) that are not	14922
otherwise appropriated.	14923

Appropriations

AFC ARTS AND SPORTS FACILITIES COMMISSION

14924

Section 15.02.  The Ohio Building Authority is hereby	14990
authorized to issue and sell, in accordance with Section 2i of	14991
Article VIII, Ohio Constitution, and Chapter 152. and other	14992
applicable sections of the Revised Code, original obligations in	14993
an aggregate principal amount not to exceed $38,000,000 in	14994
addition to the original issuance of obligations heretofore	14995
authorized by prior acts of the General Assembly. The authorized	14996
obligations shall be issued, subject to applicable constitutional	14997
and statutory limitations, to pay costs of capital facilities as	14998
defined in division (A)(5) of section 152.09 of the Revised Code,	14999
including construction as defined in division (H) of section	15000
3383.01 of the Revised Code, of the Ohio arts facilities	15001
designated in Section 15.01 of this act.	15002

Section 16.01.  All items set forth in this section are	15003
hereby appropriated out of any moneys in the state treasury to the	15004
credit of the Ohio Parks and Natural Resources Fund (Fund 031)	15005
that are not otherwise appropriated.	15006

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES

15007

STATEWIDE AND LOCAL PROJECTS

15008

Section 16.02.  The Ohio Public Facilities Commission, upon	15017
the request of the Director of Natural Resources, is hereby	15018
authorized to issue and sell, in accordance with Section 2l of	15019
Article VIII, Ohio Constitution, and Chapter 151. and particularly	15020
sections 151.01 and 151.05 of the Revised Code, original	15021
obligations in an aggregate principal amount not to exceed	15022
$15,000,000 in addition to the original issuance of obligations	15023
heretofore authorized by prior acts of the General Assembly. These	15024
authorized obligations shall be issued, subject to applicable	15025
constitutional and statutory limitations, as needed to provide	15026
sufficient moneys to the credit of the Ohio Parks and Natural	15027
Resources Fund (Fund 031) to pay costs of capital facilities as	15028
defined in sections 151.01 and 151.05 of the Revised Code.	15029

Section 16.03.  For the projects appropriated in Section	15030
16.01 of this act, the Department of Natural Resources shall	15031
periodically prepare and submit to the Director of Budget and	15032
Management the estimated design, planning, and engineering costs	15033
of capital-related work to be done by the Department of Natural	15034
Resources for each project. Based on the estimates, the Director	15035
of Budget and Management may release appropriations from the	15036
foregoing appropriation item CAP-753, Project Planning, to pay for	15037
design, planning, and engineering costs incurred by the Department	15038
of Natural Resources for such projects. Upon release of the	15039
appropriations by the Director of Budget and Management, the	15040
Department of Natural Resources shall pay for these expenses from	15041
the Capital Expenses Fund (Fund 4S9), and be reimbursed by Fund	15042
031 using an intrastate voucher.	15043

Section 17.01. All items set forth in this section are hereby	15044
appropriated out of any moneys in the state treasury to the credit	15045
of the School Building Program Assistance Fund (Fund 032) that are	15046
not otherwise appropriated.	15047

Appropriations

SFC SCHOOL FACILITIES COMMISSION

15048

SCHOOL BUILDING PROGRAM ASSISTANCE

15052

The foregoing appropriation item CAP-770, School Building	15053
Program Assistance, shall be used by the School Facilities	15054
Commission to provide funding to school districts that receive	15055
conditional approval from the Commission pursuant to Chapter 3318.	15056
of the Revised Code.	15057

Section 17.02.  The Ohio Public Facilities Commission is	15058
hereby authorized to issue and sell, in accordance with Section 2n	15059
of Article VIII, Ohio Constitution, and Chapter 151. and	15060
particularly sections 151.01 and 151.03 of the Revised Code,	15061
original obligations in an aggregate principal amount not to	15062
exceed $265,000,000, in addition to the original issuance of	15063
obligations heretofore authorized by prior acts of the General	15064
Assembly. The authorized obligations shall be issued, subject to	15065
applicable constitutional and statutory limitations, to pay the	15066
costs to the state of constructing classroom facilities pursuant	15067
to sections 3318.01 to 3318.35 of the Revised Code.	15068

Section 18.01.  All items set forth in Sections 18.02 to	15069
18.05 are hereby appropriated out of any moneys in the state	15070
treasury to the credit of the Mental Health Facilities Improvement	15071
Fund (Fund 033) that are not otherwise appropriated.	15072

Section 18.02. ADA DEPARTMENT OF ALCOHOL AND DRUG

15073

ADDICTION SERVICES

15074

COMMUNITY ASSISTANCE PROJECTS

15078

Of the foregoing appropriation item CAP-002, Community	15079
Assistance Projects, $266,512 shall be used for the Oak House	15080
Women's Residential Treatment Facility.	15081

Appropriations

Section 18.03.  DMH DEPARTMENT OF MENTAL HEALTH

15082

COMMUNITY ASSISTANCE PROJECTS

15087

Of the foregoing appropriation item CAP-479, Community	15088
Assistance Projects, $500,000 shall be used for the Achievement	15089
Centers for Children in Cuyahoga County.	15090

Section 18.04.  DMR DEPARTMENT OF MENTAL RETARDATION AND	15091
DEVELOPMENTAL DISABILITIES	15092

Appropriations

STATEWIDE AND CENTRAL OFFICE PROJECTS

15093

COMMUNITY ASSISTANCE PROJECTS

15100

The foregoing appropriation item CAP-480, Community	15101
Assistance Projects, may be used to provide community assistance	15102
funds for the development, purchase, construction, or renovation	15103
of facilities for day programs or residential programs that	15104
provide services to persons eligible for services from the	15105
Department of Mental Retardation and Developmental Disabilities or	15106
county boards of mental retardation and developmental	15107
disabilities. Any funds provided to nonprofit agencies for the	15108
construction or renovation of facilities for persons eligible for	15109
services from the Department of Mental Retardation and	15110
Developmental Disabilities and county boards of mental retardation	15111
and developmental disabilities shall be governed by the prevailing	15112
wage provisions in section 176.05 of the Revised Code.	15113

Of the foregoing appropriation item CAP-480, Community	15114
Assistance Projects, $150,000 shall be used for the Fostoria Area	15115
Community Childhood and Family Center; $250,000 shall be used for	15116
the Berea Children's Home; and $1,000,000 shall be used for the	15117
Bellefaire Jewish Children's Bureau.	15118

Section 18.05. The foregoing appropriations for the	15119
Department of Alcohol and Drug Addiction Services, CAP-002,	15120
Community Assistance Projects; Department of Mental Health,	15121
CAP-479, Community Assistance Projects; and Department of Mental	15122
Retardation and Developmental Disabilities, CAP-480, Community	15123
Assistance Projects, may be used on facilities constructed or to	15124
be constructed pursuant to Chapter 340., 3793., 5119., 5123., or	15125
5126. of the Revised Code or the authority granted by section	15126
154.20 of the Revised Code and the rules issued pursuant to those	15127
chapters and shall be distributed by the Department of Alcohol and	15128
Drug Addiction Services, the Department of Mental Health, and the	15129
Department of Mental Retardation and Developmental Disabilities,	15130
all subject to Controlling Board approval.	15131

Section 18.06.  (A) No capital improvement appropriations	15132
made in Sections 18.01 to 18.05 of this act shall be released for	15133
planning or for improvement, renovation, or construction or	15134
acquisition of capital facilities if a governmental agency, as	15135
defined in section 154.01 of the Revised Code, does not own the	15136
real property that constitutes the capital facilities or on which	15137
the capital facilities are or will be located. This restriction	15138
shall not apply in any of the following circumstances:	15139

(1) The governmental agency has a long-term (at least	15140
fifteen years) lease of, or other interest (such as an easement)	15141
in, the real property.	15142

(2) In the case of an appropriation for capital facilities	15143
that, because of their unique nature or location, will be owned or	15144
be part of facilities owned by a separate nonprofit organization	15145
and made available to the governmental agency for its use or	15146
operated by the nonprofit organization under contract with the	15147
governmental agency, the nonprofit organization either owns or has	15148
a long-term (at least fifteen years) lease of the real property or	15149
other capital facility to be improved, renovated, constructed, or	15150
acquired and has entered into a joint or cooperative use	15151
agreement, approved by the Department of Mental Health, Department	15152
of Mental Retardation and Developmental Disabilities, or	15153
Department of Alcohol and Drug Addiction Services, whichever is	15154
applicable, with the governmental agency for that agency's use of	15155
and right to use the capital facilities to be financed and, if	15156
applicable, improved, the value of such use or right to use being,	15157
as determined by the parties, reasonably related to the amount of	15158
the appropriation.	15159

(B) In the case of capital facilities referred to in	15160
division (A)(2) of this section, the joint or cooperative use	15161
agreement shall include, as a minimum, provisions that:	15162

(1) Specify the extent and nature of that joint or	15163
cooperative use, extending for not fewer than fifteen years, with	15164
the value of such use or right to use to be, as determined by the	15165
parties and approved by the approving department, reasonably	15166
related to the amount of the appropriation;	15167

(2) Provide for pro rata reimbursement to the state should	15168
the arrangement for joint or cooperative use by a governmental	15169
agency be terminated;	15170

(3) Provide that procedures to be followed during the	15171
capital improvement process will comply with appropriate	15172
applicable state laws and rules, including provisions of this act.	15173

Section 18.07.  The Treasurer of State is hereby authorized	15174
to issue and sell in accordance with Section 2i of Article VIII,	15175
Ohio Constitution, and Chapter 154. of the Revised Code,	15176
particularly section 154.20 of the Revised Code, original	15177
obligations in an aggregate principal amount not to exceed	15178
$34,000,000 in addition to the original issuance of obligations	15179
heretofore authorized by prior acts of the General Assembly. The	15180
authorized obligations shall be issued, subject to applicable	15181
constitutional and statutory limitations, to pay costs of capital	15182
facilities as defined in section 154.01 of the Revised Code for	15183
mental hygiene and retardation.	15184

Section 19.01.  All items set forth in Sections 19.02 to	15185
19.48 are hereby appropriated out of any moneys in the state	15186
treasury to the credit of the Higher Education Improvement Fund	15187
(Fund 034) that are not otherwise appropriated.	15188

Appropriations

Section 19.02.  OEB OHIO EDUCATIONAL TELECOMMUNICATIONS	15189
NETWORK COMMISSION	15190

EDUCATIONAL TELEVISION AND RADIO EQUIPMENT

15195

The foregoing appropriation item CAP-001, Educational	15196
Television and Radio Equipment, shall be used for the purpose of	15197
acquiring video file server technology for the Ohio Educational	15198
Telecommunications Network Commission's operations center.	15199

Appropriations

Section 19.03.  BOARD OF REGENTS AND STATE INSTITUTIONS OF	15200
HIGHER EDUCATION	15201

BOR BOARD OF REGENTS

15202

Section 19.04. RESEARCH FACILITY ACTION AND INVESTMENT FUNDS

15216

The foregoing appropriation item CAP-032, Research Facility	15217
Action and Investment Funds, shall be used for a program of grants	15218
to be administered by the Board of Regents to provide timely	15219
availability of capital facilities for research programs and	15220
research-oriented instructional programs at or involving	15221
state-supported and state-assisted institutions of higher	15222
education.	15223

The Board of Regents shall adopt rules under Chapter 119. of	15224
the Revised Code relative to the application for and approval of	15225
projects funded from appropriation item CAP-032, Research Facility	15226
Action and Investment Funds. The rules shall be reviewed and	15227
approved by the Legislative Committee on Education Oversight. The	15228
Board of Regents shall inform the President of the Senate and the	15229
Speaker of the House of Representatives of each project	15230
application for funding received. Each project receiving a	15231
commitment for funding by the Board of Regents under the rules	15232
shall be reported to the President of the Senate and the Speaker	15233
of the House of Representatives.	15234

Section 19.05.  TECHNOLOGY INITIATIVES

15235

The foregoing appropriation CAP-060, Technology Initiatives,	15236
shall be used by the Board of Regents to support collaborative	15237
initiatives to improve the quality and efficiency of instruction,	15238
services, and program offerings at Ohio's state-assisted colleges	15239
and universities.	15240

Section 19.06. EMINENT SCHOLARS CAPITAL GRANTS

15241

The foregoing appropriation item CAP-064, Eminent Scholars	15242
Capital Grants, shall be used by the Ohio Board of Regents to make	15243
grants to state colleges and universities and nonprofit Ohio	15244
institutions of higher education holding certificates of	15245
authorization issued under section 1713.02 of the Revised Code	15246
that receive endowment grants from appropriation item 235-451,	15247
Eminent Scholars. The capital grants shall be used to acquire,	15248
renovate, rehabilitate, or construct facilities and purchase	15249
equipment to be used by an Eminent Scholar in the conduct of	15250
research, and shall require a 50 per cent match from recipient	15251
campuses.	15252

The Board of Regents shall convene an Eminent Scholars	15253
Advisory Panel, which shall make recommendations for the	15254
administration of the Eminent Scholars program, including the	15255
award of capital grants. The panel's recommendations for capital	15256
awards from appropriation item CAP-064, Eminent Scholars Capital	15257
Grants, shall require the approval of the Board of Regents.	15258

Section 19.07. THIRD FRONTIER PROJECT

15259

The foregoing appropriation item CAP-068, Third Frontier	15260
Project, shall be used to acquire, renovate, or construct	15261
facilities and purchase equipment for research programs technology	15262
development, product development, and commercialization programs	15263
at or involving state-supported and state-assisted institutions of	15264
higher education. The funds shall be used to make grants awarded	15265
on a competitive basis, and shall be administered by the Third	15266
Frontier Commission. Expenditure of these funds shall comply with	15267
Section 2n of Article VIII, Ohio Constitution, and sections 151.01	15268
and 151.04 of the Revised Code for the period beginning July 1,	15269
2002, and ending June 30, 2004.	15270

The Third Frontier Commission shall develop guidelines	15271
relative to the application for and selection of projects funded	15272
from appropriation item CAP-068, Third Frontier Project. The	15273
commission may develop these guidelines in consultation with other	15274
interested parties. The Board of Regents and all state-assisted	15275
and state-supported institutions of higher education shall take	15276
all actions necessary to implement grants awarded by the Third	15277
Frontier Commission.	15278

The foregoing appropriation item CAP-068, Third Frontier	15279
Project, for which an appropriation is made from the Higher	15280
Education Improvement Fund (Fund 034), is determined to consist of	15281
capital improvements and capital facilities for state-supported	15282
and state-assisted institutions of higher education, and is	15283
designated for the capital facilities to which proceeds of	15284
obligations in the Higher Education Improvement Fund (Fund 034)	15285
are to be applied.	15286

Section 19.08. REIMBURSEMENT FOR PROJECT COSTS

15287

Appropriations made in Sections 19.08 to 19.48 of this act	15288
for purposes of costs of capital facilities for the interim	15289
financing of which the particular institution has previously	15290
issued its own obligations anticipating the possibility of future	15291
state appropriations to pay all or a portion of such costs, as	15292
contemplated in division (B) of section 3345.12 of the Revised	15293
Code, shall be paid directly to the institution or the paying	15294
agent for those outstanding obligations in the full principal	15295
amount of those obligations then to be paid from the anticipated	15296
appropriation, and shall be timely applied to the retirement of a	15297
like principal amount of the institutional obligations.	15298

Appropriations made in Sections 19.09 to 19.48 of this act	15299
for purposes of costs of capital facilities, all or a portion of	15300
which costs the particular institution has paid from the	15301
institution's moneys that were temporarily available and which	15302
payments were reasonably expected to be reimbursed from the	15303
proceeds of obligations issued by the state, shall be directly	15304
paid to the institution in the full amounts of those payments, and	15305
shall be timely applied to the reimbursement of those temporarily	15306
available moneys.	15307

Appropriations

Section 19.09.  UAK UNIVERSITY OF AKRON

15308

Appropriations

Section 19.10.  BGU BOWLING GREEN STATE UNIVERSITY

15319

Appropriations

Section 19.11.  CSU CENTRAL STATE UNIVERSITY

15330

Appropriations

Section 19.12.  UCN UNIVERSITY OF CINCINNATI

15335

Appropriations

Section 19.13.  CLS CLEVELAND STATE UNIVERSITY

15358

Appropriations

Section 19.14.  KSU KENT STATE UNIVERSITY

15369

Appropriations

Section 19.15.  MUN MIAMI UNIVERSITY

15394

Appropriations

Section 19.16.  OSU OHIO STATE UNIVERSITY

15415

Appropriations

Section 19.17.  OHU OHIO UNIVERSITY

15438

Appropriations

Section 19.18.  SSC SHAWNEE STATE UNIVERSITY

15457

Appropriations

Section 19.19.  UTO UNIVERSITY OF TOLEDO

15465

Appropriations

Section 19.20.  WSU WRIGHT STATE UNIVERSITY

15472

Appropriations

Section 19.21.  YSU YOUNGSTOWN STATE UNIVERSITY

15486

Appropriations

Section 19.22.  MCO MEDICAL COLLEGE OF OHIO

15500

Appropriations

Section 19.23.  NEM NORTHEASTERN OHIO UNIVERSITIES COLLEGE	15508
OF MEDICINE	15509

Appropriations

Section 19.24.  CTC CINCINNATI STATE COMMUNITY COLLEGE

15516

Appropriations

Section 19.25.  CLT CLARK STATE COMMUNITY COLLEGE

15524

Appropriations

Section 19.26.  CTI COLUMBUS STATE COMMUNITY COLLEGE

15530

Appropriations

Section 19.27.  CCC CUYAHOGA COMMUNITY COLLEGE

15536

Appropriations

Section 19.28.  ESC EDISON STATE COMMUNITY COLLEGE

15545

Appropriations

Section 19.29.  JTC JEFFERSON COMMUNITY COLLEGE

15549

Appropriations

Section 19.30.  LCC LAKELAND COMMUNITY COLLEGE

15554

Appropriations

Section 19.31.  LOR LORAIN COMMUNITY COLLEGE

15563

Appropriations

Section 19.32.  NTC NORTHWEST STATE COMMUNITY COLLEGE

15567

Appropriations

Section 19.33.  OTC OWENS COMMUNITY COLLEGE

15572

Appropriations

Section 19.34.  RGC RIO GRANDE COMMUNITY COLLEGE

15578

Appropriations

Section 19.35.  SCC SINCLAIR COMMUNITY COLLEGE

15582

Appropriations

Section 19.36.  SOC SOUTHERN STATE COMMUNITY COLLEGE

15586

Appropriations

Section 19.37.  TTC TERRA STATE COMMUNITY COLLEGE

15591

Appropriations

Section 19.38.  WTC WASHINGTON STATE COMMUNITY COLLEGE

15595

Appropriations

Section 19.39.  BTC BELMONT TECHNICAL COLLEGE

15599

Appropriations

Section 19.40.  COT CENTRAL OHIO TECHNICAL COLLEGE

15603

Appropriations

Section 19.41.  HTC HOCKING TECHNICAL COLLEGE

15608

Appropriations

Section 19.42.  LTC LIMA TECHNICAL COLLEGE

15614

Appropriations

Section 19.43.  MTC MARION TECHNICAL COLLEGE

15619

Appropriations

Section 19.44.  MAT MUSKINGUM AREA TECHNICAL COLLEGE

15624

Appropriations

Section 19.45.  NCC NORTH CENTRAL TECHNICAL COLLEGE

15630

Appropriations

Section 19.46. STC STARK TECHNICAL COLLEGE

15634

Section 19.47.  DEBT SERVICE FORMULA ALLOCATION

15642

Based on the foregoing appropriations in Sections 19.09 to	15643
19.46 of this act, from Fund 034, Higher Education Improvement	15644
Fund, the following higher education institutions shall be	15645
responsible for the specified amounts as part of the debt service	15646
component of the instructional subsidy beginning in fiscal year	15647
2004:	15648

Institutions not listed above shall not have a debt service	15697
obligation as a result of these appropriations.	15698

Within sixty days after the effective date of this section,	15699
any institution of higher education may notify the Board of	15700
Regents of its intention not to proceed with any project	15701
appropriated in this act. Upon receiving such notification, the	15702
Board of Regents may release the institution from its debt service	15703
obligation for the specific project.	15704

Section 19.48.  For all of the foregoing appropriation items	15705
from the Higher Education Improvement Fund (Fund 034) that require	15706
local funds to be contributed by any state-supported or	15707
state-assisted institution of higher education, the Ohio Board of	15708
Regents shall not recommend that any funds be released until the	15709
recipient institution demonstrates to the Board of Regents and the	15710
Office of Budget and Management that the local funds contribution	15711
requirement has been secured or satisfied. The local funds shall	15712
be in addition to the foregoing appropriations.	15713

Section 19.49.  The Ohio Public Facilities Commission is	15714
hereby authorized to issue and sell, in accordance with Section 2n	15715
of Article VIII, Ohio Constitution, Chapter 151. and particularly	15716
sections 151.01 and 151.04 of the Revised Code, original	15717
obligations in an aggregate principal amount not to exceed	15718
$536,690,000, in addition to the original issuance of obligations	15719
heretofore authorized by prior acts of the General Assembly. The	15720
authorized obligations shall be issued, subject to applicable	15721
constitutional and statutory limitations, to pay costs of capital	15722
facilities as defined in sections 151.01 and 151.04 of the Revised	15723
Code for state-supported and state-assisted institutions of higher	15724
education.	15725

Section 19.50.  None of the foregoing capital improvements	15727
appropriations for state-supported or state-assisted institutions	15728
of higher education shall be expended until the particular	15729
appropriation has been recommended for release by the Ohio Board	15730
of Regents and released by the Director of Budget and Management	15731
or the Controlling Board. Either the institution concerned, or	15732
the Ohio Board of Regents with the concurrence of the institution	15733
concerned, may initiate the request to the Director of Budget and	15734
Management or the Controlling Board for the release of the	15735
particular appropriations.	15736

Section 19.51.  No capital improvement appropriations made in	15737
Sections 19.02 to 19.48 of this act shall be released for planning	15738
or for improvement, renovation, construction, or acquisition of	15739
capital facilities if the institution of higher education or the	15740
state does not own the real property on which the capital	15741
facilities are or will be located. This restriction does not	15742
apply in any of the following circumstances:	15743

(1) The institution has a long-term (at least fifteen years)	15744
lease of, or other interest (such as an easement) in, the real	15745
property.	15746

(2) The Ohio Board of Regents certifies to the Controlling	15747
Board that undue delay will occur if planning does not proceed	15748
while the property or property interest acquisition process	15749
continues. In this case, funds may be released upon approval of	15750
the Controlling Board to pay for planning through the development	15751
of schematic drawings only.	15752

(3) In the case of an appropriation for capital facilities	15753
that, because of their unique nature or location, will be owned or	15754
will be part of facilities owned by a separate nonprofit	15755
organization or public body and will be made available to the	15756
institution of higher education for its use, the nonprofit	15757
organization or public body either owns or has a long-term (at	15758
least fifteen years) lease of the real property or other capital	15759
facility to be improved, renovated, constructed, or acquired and	15760
has entered into a joint or cooperative use agreement with the	15761
institution of higher education that meets the requirements of	15762
division (C) of this section.	15763

(B) Any foregoing appropriations which require cooperation	15764
between a technical college and a branch campus of a university	15765
may be released by the Controlling Board upon recommendation by	15766
the Ohio Board of Regents that the facilities proposed by the	15767
institutions are:	15768

(1) The result of a joint planning effort by the university	15769
and the technical college, satisfactory to the Ohio Board of	15770
Regents;	15771

(2) Facilities that will meet the needs of the region in	15772
terms of technical and general education, taking into	15773
consideration the totality of facilities which will be available	15774
after the completion of these projects;	15775

(3) Planned to permit maximum joint use by the university	15776
and technical college of the totality of facilities which will be	15777
available upon their completion; and	15778

(4) To be located on or adjacent to the branch campus of the	15779
university.	15780

(C) The Ohio Board of Regents shall adopt rules regarding	15781
the release of moneys from all the foregoing appropriations for	15782
capital facilities for all state-supported or state-assisted	15783
institutions of higher education. In the case of capital	15784
facilities referred to in division (A)(3) of this section, the	15785
joint or cooperative use agreements shall include, as a minimum,	15786
provisions that:	15787

(1) Specify the extent and nature of that joint or	15788
cooperative use, extending for not fewer than fifteen years, with	15789
the value of such use or right to use to be, as to be determined	15790
by the parties and approved by the Board of Regents, reasonably	15791
related to the amount of the appropriations;	15792

(2) Provide for pro rata reimbursement to the state should	15793
the arrangement for joint or cooperative use be terminated;	15794

(3) Provide that procedures to be followed during the	15795
capital improvement process will comply with appropriate	15796
applicable state laws and rules, including provisions of this act;	15797
and	15798

(4) Provide for payment or reimbursement to the institution	15799
of its administrative costs incurred as a result of the facilities	15800
project, not to exceed 1.5 per cent of the appropriated amount.	15801

(D) Upon the recommendation of the Ohio Board of Regents,	15802
the Controlling Board may approve the transfer of appropriations	15803
for projects requiring cooperation between institutions from one	15804
institution to another institution with the approval of both	15805
institutions.	15806

(E) Notwithstanding section 127.14 of the Revised Code, the	15807
Controlling Board, upon the recommendation of the Ohio Board of	15808
Regents, may transfer amounts appropriated to the Ohio Board of	15809
Regents to accounts of state-supported or state-assisted	15810
institutions created for that same purpose.	15811

Section 19.52.  The requirements of Chapters 123. and 153. of	15812
the Revised Code, with respect to the powers and duties of the	15813
Director of Administrative Services, and the requirements of	15814
section 127.16 of the Revised Code, with respect to the	15815
Controlling Board, shall not apply to projects of community	15816
college districts, which include Cuyahoga Community College,	15817
Jefferson Community College, Lakeland Community College, Lorain	15818
County Community College, Rio Grande Community College, and	15819
Sinclair Community College; and technical college districts which	15820
include Belmont Technical College, Central Ohio Technical College,	15821
Hocking Technical College, Lima Technical College, Marion	15822
Technical College, Muskingum Area Technical College, North Central	15823
Technical College, and Stark Technical College.	15824

Section 19.53.  Those institutions locally administering	15825
capital improvement projects pursuant to section 3345.50 of the	15826
Revised Code may:	15827

(A) Establish charges for recovering costs directly related	15828
to project administration as defined by the Director of	15829
Administrative Services. The Department of Administrative	15830
Services shall review and approve these administrative charges	15831
when such charges are in excess of 1.5 per cent of the total	15832
construction budget.	15833

(B) Seek reimbursement from state capital appropriations to	15834
the institution for the in-house design services performed by the	15835
institution for such capital projects. Acceptable charges shall be	15836
limited to design document preparation work that is done by the	15837
institution. These reimbursable design costs shall be shown as	15838
"A/E fees" within the project's budget that is submitted to the	15839
Controlling Board or the Director of Budget and Management as part	15840
of a request for release of funds. The reimbursement for in-house	15841
design shall not exceed seven per cent of the estimated	15842
construction cost.	15843

Section 20.01. All items set forth in this section are hereby	15844
appropriated out of any moneys in the state treasury to the credit	15845
of the Parks and Recreation Improvement Fund (Fund 035) that are	15846
not otherwise appropriated.	15847

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES

15848

RIVERFRONT IMPROVEMENTS

15864

Of the foregoing appropriation item CAP-727, Riverfront	15865
Improvements, $100,000 shall be used for the Spencerville Canal	15866
Improvements and $350,000 shall be used for the Rush Creek and	15867
Upper Hocking Project.	15868

SCIOTO RIVERFRONT IMPROVEMENTS

15869

Of the foregoing appropriation item CAP-787, Scioto	15870
Riverfront Improvements, $1,000,000 shall be used for the Spring	15871
and Long Park and $2,000,000 shall be used for the Riverfront	15872
Park.	15873

STATEWIDE TRAILS PROGRAMS

15874

Of the foregoing appropriation item CAP-876, Statewide Trails	15875
Programs, $50,000 shall be used for the Strongsville Trail	15876
Project; $30,000 shall be used for Fairfield Heritage Trails;	15877
$250,000 shall be used for the Ohio to Erie Bike Trail; and	15878
$100,000 shall be used for the Upper Sandusky Bike Path.	15879

FEDERAL REIMBURSEMENT

15880

All reimbursements received from the federal government for	15881
any expenditures made pursuant to this section shall be deposited	15882
in the state treasury to the credit of the Parks and Recreation	15883
Improvement Fund (Fund 035).	15884

LOCAL PARKS PROJECTS

15885

Of the foregoing appropriation item CAP-748, Local Parks	15886
Projects, $1,500,000 shall be used for Cleveland Lakefront Park	15887
Improvements; $500,000 shall be used for Colerain Township Park	15888
Improvements; $250,000 shall be used for the Cuyahoga Falls	15889
Riverfront Mall Festival Site; $50,000 shall be used for Smith	15890
Field Park Improvements; $650,000 shall be used for Belmont County	15891
Park Improvements; $50,000 shall be used for St. Clairsville Park	15892
Improvements; $50,000 shall be used for Mt. Orab Park	15893
Improvements; $50,000 shall be used for Sardinia Park	15894
Improvements; $50,000 shall be used for Liberty Township	15895
Playground; $100,000 shall be used for Gallipolis City Park	15896
Improvements; $100,000 shall be used for Lake County Perry	15897
Township Park Improvements; $10,000 shall be used for Russells	15898
Point Park Improvements; $40,000 shall be used for Zanesville Park	15899
Improvements; $30,000 shall be used for New Lexington Park	15900
Improvements; $50,000 shall be used for Somerset Park	15901
Improvements; $20,000 shall be used for Junction City Park	15902
Improvements; $50,000 shall be used for Shelly Park Improvements;	15903
$50,000 shall be used for the Mt. Gilead Headwaters Shelter;	15904
$25,000 shall be used for the Richland County Korean War Memorial;	15905
$350,000 shall be used for Pine Hills Lakes; $200,000 shall be	15906
used for the Goll Woods Nature Preserve; $15,000 shall be used for	15907
Ryan Park Improvements; $15,000 shall be used for Circleville Park	15908
Improvements; $15,000 shall be used for Corning Downtown Park	15909
Improvements.	15910

Section 20.02.  The Treasurer of State is hereby authorized	15911
to issue and sell, in accordance with Section 2i of Article VIII,	15912
Ohio Constitution, and Chapter 154. of the Revised Code,	15913
particularly section 154.22 of the Revised Code, original	15914
obligations in an aggregate principal amount not to exceed	15915
$22,000,000, in addition to the original issuance of obligations	15916
heretofore authorized by prior acts of the General Assembly. The	15917
authorized obligations shall be issued, subject to applicable	15918
constitutional and statutory limitations, to pay the costs of	15919
capital facilities as defined in section 154.01 of the Revised	15920
Code.	15921

Section 20.03.  (A) No capital improvement appropriations	15922
made in Section 20.01 of this act shall be released for planning	15923
or for improvement, renovation, or construction or acquisition of	15924
capital facilities if a governmental agency, as defined in section	15925
154.01 of the Revised Code, does not own the real property that	15926
constitutes the capital facilities or on which the capital	15927
facilities are or will be located. This restriction does not	15928
apply in any of the following circumstances:	15929

(1) The governmental agency has a long-term (at least	15930
fifteen years) lease of, or other interest (such as an easement)	15931
in, the real property;	15932

(2) In the case of an appropriation for capital facilities	15933
for parks and recreation that, because of their unique nature or	15934
location, will be owned or be part of facilities owned by a	15935
separate nonprofit organization and made available to the	15936
governmental agency for its use or operated by the nonprofit	15937
organization under contract with the governmental agency, the	15938
nonprofit organization either owns or has a long-term (at least	15939
fifteen years) lease of the real property or other capital	15940
facility to be improved, renovated, constructed, or acquired and	15941
has entered into a joint or cooperative use agreement, approved by	15942
the Department of Natural Resources, with the governmental agency	15943
for that agency's use of and right to use the capital facilities	15944
to be financed and, if applicable, improved, the value of such use	15945
or right to use being, as determined by the parties, reasonably	15946
related to the amount of the appropriation.	15947

(B) In the case of capital facilities referred to in	15948
division (A)(2) of this section, the joint or cooperative use	15949
agreement shall include, as a minimum, provisions that:	15950

(1) Specify the extent and nature of that joint or	15951
cooperative use, extending for not fewer than fifteen years, with	15952
the value of such use or right to use to be, as determined by the	15953
parties and approved by the approving department, reasonably	15954
related to the amount of the appropriation;	15955

(2) Provide for pro rata reimbursement to the state should	15956
the arrangement for joint or cooperative use by a governmental	15957
agency be terminated; and	15958

(3) Provide that procedures to be followed during the	15959
capital improvement process will comply with appropriate	15960
applicable state laws and rules, including provisions of this act.	15961

Section 21.01. All items set forth in this section are hereby	15962
appropriated out of any moneys in the state treasury to the credit	15963
of the Clean Ohio Conservation Fund (Fund 056) that are not	15964
otherwise appropriated.	15965

Appropriations

PWC PUBLIC WORKS COMMISSION

15966

The foregoing appropriation item CAP-152, Clean Ohio	15970
Conservation, shall be used in accordance with sections 164.20 to	15971
164.27 of the Revised Code. If the Public Works Commission	15972
receives refunds due to project overpayments that are discovered	15973
during the post-project audit, the Director of the Public Works	15974
Commission may certify to the Director of Budget and Management	15975
that refunds have been received. If the Director of Budget and	15976
Management determines that project refunds are available to	15977
support additional appropriations, such amounts are hereby	15978
appropriated.	15979

Section 21.02. The Ohio Public Facilities Commission is	15980
hereby authorized to issue and sell, in accordance with Section 2o	15981
of Article VIII, Ohio Constitution, and sections 151.01 and 151.09	15982
of the Revised Code, original obligations in an aggregate	15983
principal amount not to exceed $50,000,000, in addition to the	15984
original issuance of obligations heretofore authorized by prior	15985
acts of the General Assembly. These authorized obligations shall	15986
be issued, subject to applicable constitional and statutory	15987
limitations, as needed to ensure sufficient moneys to the credit	15988
of the Clean Ohio Conservation Fund (Fund 056), the Clean Ohio	15989
Agricultural Easement Fund (Fund 057), and the Clean Ohio Trail	15990
Fund (Fund 061) to pay costs of conservation projects as defined	15991
in sections 151.01 and 151.09 of the Revised Code.	15992

Section 21.03. All items set forth in this section are hereby	15993
appropriated out of any moneys in the state treasury to the credit	15994
of the Clean Ohio Agricultural Easement Fund (Fund 057) that are	15995
not otherwise appropriated.	15996

Appropriations

AGR DEPARTMENT OF AGRICULTURE

15997

Section 21.04. All items set forth in this section are hereby	16002
appropriated out of any moneys in the state treasury to the credit	16003
of the Clean Ohio Trail Fund (Fund 061), that are not otherwise	16004
appropriated.	16005

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES

16006

Section 22.01.  CERTIFICATION OF RENTAL PAYMENTS

16011

Each request for release of appropriations for any and all	16012
capital improvements and capital facilities for which	16013
appropriations are made in this act from the proceeds of	16014
obligations in the Sports Facilities Building Fund (Fund 024), the	16015
Administrative Building Fund (Fund 026), the Adult Correctional	16016
Building Fund (Fund 027), the Juvenile Correctional Building Fund	16017
(Fund 028), the Arts Facilities Building Fund (Fund 030), the	16018
Natural Resources Projects Fund (Fund 031), the School Building	16019
Program Assistance Fund (Fund 032), the Mental Health Facilities	16020
Improvement Fund (Fund 033), the Higher Education Improvement Fund	16021
(Fund 034), and the Parks and Recreation Improvements Fund (Fund	16022
035) shall have the certification of the Director of Budget and	16023
Management that sufficient General Revenue Fund moneys are	16024
appropriated for and will be available for rental payments to the	16025
Ohio Public Facilities Commission, the Treasurer of State, and the	16026
Ohio Building Authority in the then-current fiscal biennium	16027
relating to obligations or portions of obligations issued or to be	16028
issued in that fiscal biennium to fund, in the then-current fiscal	16029
biennium, anticipated expenditures from these funds associated	16030
with the request.	16031

Section 22.02. HIGHWAY SAFETY FUND CERTIFICATION OF RENTAL	16032
PAYMENTS	16033

No money shall be encumbered for any capital improvements and	16034
capital facilities for which appropriations are made in excess of	16035
the cash balances from the proceeds of obligations in the Highway	16036
Safety Building Fund (Fund 025) unless the Director of Budget and	16037
Management certifies that sufficient Highway Safety Fund moneys	16038
are appropriated and available for rental payments to the Ohio	16039
Building Authority for debt service payments by the state in the	16040
then-current fiscal biennium relating to obligations or portions	16041
of obligations issued or to be issued in that fiscal biennium to	16042
fund, in the then-current fiscal biennium, anticipated	16043
expenditures from these funds associated with related	16044
encumbrances.	16045

Section 23.01. CERTIFICATION OF AVAILABILITY OF MONEYS

16046

No moneys that require release may be expended from any	16047
appropriation contained in this act without certification of the	16048
Director of Budget and Management that there are sufficient moneys	16049
in the state treasury in the fund from which the appropriation is	16050
made. Such certification shall be based on estimates of revenue,	16051
receipts, and expenses. Nothing herein shall be construed as a	16052
limitation on the authority of the Director of Budget and	16053
Management under section 126.07 of the Revised Code.	16054

Section 23.02. LIMITATIONS ON CAPITAL APPROPRIATIONS

16055

The appropriations made in this act excluding those made to	16056
the State Capital Improvement Fund (Fund 038) and the State	16057
Capital Improvements Revolving Loan Fund (Fund 040) for buildings	16058
or structures, including remodeling and renovations, are limited	16059
to:	16060

(A) Acquisition of real property or interest in real	16061
property;	16062

(B) Buildings and structures, which includes construction,	16063
demolition, lighting and lighting fixtures, and all necessary	16064
utilities, heating and ventilating, plumbing, sprinkling, and	16065
sewer systems, when such systems are authorized or necessary;	16066

(C) Architectural, engineering, and professional services	16067
expenses directly related to the projects;	16068

(D) Machinery that is a part of buildings and structures at	16069
the time of initial acquisition or construction;	16070

(E) Acquisition, development, and deployment of new computer	16071
systems, including the redevelopment or integration of existing	16072
and new computer systems, but excluding regular or ongoing	16073
maintenance or support agreements;	16074

(F) Equipment that meets all the following criteria:

16075

(1) The equipment is essential in bringing the facility up	16076
to its intended use.	16077

(2) The unit cost of the equipment, and not the individual	16078
parts of a unit, is approximately $100 or more.	16079

(3) The equipment has a useful life of five years or more.

16080

(4) The equipment is necessary for the functioning of the	16081
particular facility or project.	16082

No equipment shall be paid for from these appropriations that	16083
is not an integral part of or directly related to the basic	16084
purpose or function of a facility or project for which moneys are	16085
appropriated. This does not apply to line items for equipment.	16086

Section 23.03. CONTINGENCY RESERVE REQUIREMENT

16087

Any request for release of capital appropriations by the	16088
Director of Budget and Management or the Controlling Board of	16089
capital appropriations for projects, the contracts for which are	16090
awarded by the Department of Administrative Services, shall	16091
contain a contingency reserve, the amount of which shall be	16092
determined by the Department of Administrative Services, for	16093
payment of unanticipated project expenses. Any amount deducted	16094
from the encumbrance for a contractor's contract as an assessment	16095
for liquidated damages shall be added to the encumbrance for the	16096
contingency reserve. Contingency reserve funds shall be used to	16097
pay costs resulting from unanticipated job conditions, to comply	16098
with rulings regarding building and other codes, to pay costs	16099
related to errors or omissions in contract documents, to pay costs	16100
associated with changes in the scope of work, and to pay the cost	16101
of settlements and judgments related to the project.	16102

Any funds remaining upon completion of a project may, upon	16103
approval of the Controlling Board, be released for the use of the	16104
institution to which the appropriation was made for other capital	16105
facilities projects.	16106

Section 23.04. AGENCY ADMINISTRATION OF CAPITAL FACILITIES	16107
PROJECTS	16108

Notwithstanding sections 123.01 and 123.15 of the Revised	16109
Code, the Director of Administrative Services may authorize the	16110
Departments of Mental Health, Mental Retardation and Developmental	16111
Disabilities, Alcohol and Drug Addiction Services, Agriculture,	16112
Job and Family Services, Rehabilitation and Correction, Youth	16113
Services, Public Safety and Transportation, the Ohio Veterans'	16114
Home, and the Rehabilitation Services Commission to administer any	16115
capital facilities projects the estimated cost of which, including	16116
design fees, construction, equipment, and contingency amounts, is	16117
less than $1,500,000. Requests for authorization to administer	16118
capital facilities projects shall be made in writing to the	16119
Director of Administrative Services by the applicable state agency	16120
within sixty days after the effective date of the act in which the	16121
General Assembly initially makes an appropriation for the project.	16122
Upon the release of funds for such projects by the Controlling	16123
Board or the Director of Budget and Management, the agency may	16124
administer the capital project or projects for which agency	16125
administration has been authorized without the supervision,	16126
control, or approval of the Director of Administrative Services.	16127

The state agency authorized by the Director of Administrative	16128
Services to administer capital facilities projects pursuant to	16129
this section shall comply with the applicable procedures and	16130
guidelines established in Chapter 153. of the Revised Code.	16131

Section 23.05.  SATISFACTION OF JUDGMENTS AND SETTLEMENTS	16132
AGAINST THE STATE	16133

Except as otherwise provided in this section, an	16134
appropriation in this act or any other act may be used for the	16135
purpose of satisfying judgments, settlements, or administrative	16136
awards ordered or approved by the Court of Claims or by any other	16137
court of competent jurisdiction in connection with civil actions	16138
against the state. This authorization does not apply to	16139
appropriations to be applied to or used for payment of guarantees	16140
by or on behalf of the state, or for payments under lease	16141
agreements relating to or debt service on bonds, notes, or other	16142
obligations of the state. Notwithstanding any other section of law	16143
to the contrary, this authorization includes appropriations from	16144
funds into which proceeds or direct obligations of the state are	16145
deposited only to the extent that the judgment, settlement, or	16146
administrative award is for or represents capital costs for which	16147
the appropriation may otherwise be used and is consistent with the	16148
purpose for which any related obligations were issued or entered	16149
into. Nothing contained in this section is intended to subject	16150
the state to suit in any forum in which it is not otherwise	16151
subject to suit, and it is not intended to waive or compromise any	16152
defense or right available to the state in any suit against it.	16153

Section 23.06. CAPITAL RELEASES BY THE DIRECTOR OF BUDGET AND	16154
MANAGEMENT	16155

Notwithstanding section 126.14 of the Revised Code,	16156
appropriations for appropriation items CAP-002, Local Jails, and	16157
CAP-003, Community-Based Correctional Facilities, appropriated	16158
from the Adult Correctional Building Fund (Fund 027) to the	16159
Department of Rehabilitation and Correction shall be released upon	16160
the written approval of the Director of Budget and Management. The	16161
appropriations from the Public School Building Fund (Fund 021) and	16162
the School Building Program Assistance Fund (Fund 032) to the	16163
School Facilities Commission, from the Transportation Building	16164
Fund (Fund 029) to the Department of Transportation, from the	16165
Clean Ohio Conservation Fund (Fund 056), the State Capital	16166
Improvement Fund (Fund 038), and the State Capital Improvements	16167
Revolving Loan Fund (Fund 040) to the Public Works Commission,	16168
shall be released upon presentation of a request to release the	16169
funds, by the agency to which the appropriation has been made, to	16170
the Director of Budget and Management.	16171

Section 23.07. PREVAILING WAGE REQUIREMENT

16172

Except as provided in section 4115.04 of the Revised Code, no	16173
moneys appropriated or reappropriated by the 124th General	16174
Assembly shall be used for the construction of public	16175
improvements, as defined in section 4115.03 of the Revised Code,	16176
unless the mechanics, laborers, or workers engaged therein are	16177
paid the prevailing rate of wages as prescribed in section 4115.04	16178
of the Revised Code. Nothing in this section shall affect the	16179
wages and salaries established for state employees under the	16180
provisions of Chapter 124. of the Revised Code, or collective	16181
bargaining agreements entered into by the state pursuant to	16182
Chapter 4117. of the Revised Code, while engaged on force account	16183
work, nor shall this section interfere with the use of inmate and	16184
patient labor by the state.	16185

Section 23.08.  CAPITAL FACILITIES LEASES

16186

Capital facilities for which appropriations are made from the	16187
Sports Facilities Building Fund (Fund 024), Administrative	16188
Building Fund (Fund 026), the Adult Correctional Building Fund	16189
(Fund 027), the Juvenile Correctional Building Fund (Fund 028),	16190
and the Arts Facilities Building Fund (Fund 030) may be leased by	16191
the Ohio Building Authority to the Departments of Youth Services,	16192
Administrative Services, Rehabilitation and Correction, or the	16193
Arts and Sports Facilities Commission. Other agreements may be	16194
made by the Ohio Building Authority and those departments with	16195
respect to the use or purchase of such capital facilities. Subject	16196
to the approval of the director of the department or the	16197
commission, the Ohio Building Authority may lease such capital	16198
facilities to, and make other agreements with respect to their use	16199
or purchase with, any governmental agency or nonprofit corporation	16200
having authority under law to own, lease, or operate such capital	16201
facilities. The department or the commission may sublease such	16202
capital facilities to, and make other agreements with respect to	16203
their use or purchase with, any such governmental agency or	16204
nonprofit corporation, which may include provisions for	16205
transmittal of receipts of that agency or nonprofit corporation of	16206
any charges for the use of such facilities, all upon such terms	16207
and conditions as the parties may agree upon and any other	16208
provision of law affecting the leasing, acquisition, or	16209
disposition of capital facilities by such parties.	16210

Section 23.09. APPROVAL OF EXPENDITURES BY THE DIRECTOR OF	16211
BUDGET AND MANAGEMENT	16212

The Director of Budget and Management shall review the	16213
initial release of moneys for projects from the funds into which	16214
proceeds of direct obligations of the state are deposited, and	16215
authorize the expenditure or encumberance of moneys from those	16216
funds only after determining to the director's satisfaction that	16217
either of the following apply:	16218

(A) The application of such moneys to the particular project	16219
will not negatively affect any exemption or exclusion from federal	16220
income tax of the interest or interest equivalent on obligations,	16221
issued to provide moneys to the particular fund.	16222

(B) Moneys for the project will come from the proceeds of	16223
obligations, the interest on which is not so excluded or exempt	16224
and which have been authorized as "taxable obligations" by the	16225
issuing authority.	16226

The director shall report any nonrelease of moneys pursuant	16227
to this section to the Governor, the presiding officer of each	16228
house of the General Assembly, and the agency for the use of which	16229
the project is intended.	16230

Section 23.10.  SCHOOL FACILITIES ENCUMBRANCES AND	16231
REAPPROPRIATION	16232

At the request of the Executive Director of the Ohio School	16233
Facilities Commission, the Director of Budget and Management may	16234
cancel encumbrances for school district projects from a previous	16235
biennium if the district has not raised its local share of project	16236
costs within one year of receiving Controlling Board approval in	16237
accordance with section 3318.05 of the Revised Code. The	16238
Executive Director of the Ohio School Facilities Commission shall	16239
certify the amounts of these canceled encumbrances to the Director	16240
of Budget and Management on a quarterly basis. The amounts of the	16241
canceled encumbrances are hereby appropriated.	16242

Section 23.11. CERTIFICATE OF NEED REQUIREMENT

16243

No appropriation for a health care facility authorized under	16244
this act may be released until the requirements of sections	16245
3702.51 to 3702.68 of the Revised Code have been met.	16246

Section 23.12. DISTRIBUTION OF PROCEEDS FROM ASBESTOS	16247
ABATEMENT LITIGATION	16248

All proceeds received by the state as a result of litigation,	16249
judgments, settlements, or claims, filed by or on behalf of any	16250
state agency as defined by section 1.60 of the Revised Code or	16251
state-supported or state-assisted institution of higher education,	16252
for damages or costs resulting from the use, removal, or hazard	16253
abatement of asbestos materials shall be deposited in the Asbestos	16254
Abatement Distribution Fund (Fund 674). All funds deposited into	16255
the Asbestos Abatement Distribution Fund are hereby appropriated	16256
to the Attorney General. To the extent practicable, the proceeds	16257
placed in the Asbestos Abatement Distribution Fund shall be	16258
divided among the state agencies and state-supported or	16259
state-assisted institutions of higher education in accordance with	16260
the general provisions of the litigation regarding the percentage	16261
of recovery. Distribution of the proceeds to each state agency	16262
or state-supported or state-assisted institution of higher	16263
education shall be made in accordance with the Asbestos Abatement	16264
Distribution Plan to be developed by the Attorney General, the	16265
General Services Division within the Department of Administrative	16266
Services, and the Office of Budget and Management.	16267

In those circumstances where asbestos litigation proceeds are	16268
for reimbursement of expenditures made with funds outside the	16269
state treasury or damages to buildings not constructed with state	16270
appropriations, direct payments shall be made to the affected	16271
institutions of higher education. Any proceeds received for	16272
reimbursement of expenditures made with funds within the state	16273
treasury or damages to buildings occupied by state agencies shall	16274
be distributed to the affected agencies with an intrastate	16275
transfer voucher to the funds identified in the Asbestos Abatement	16276
Distribution Plan.	16277

Such proceeds shall be used for additional asbestos abatement	16278
or encapsulation projects, or for other capital improvements,	16279
except that proceeds distributed to the General Revenue Fund and	16280
other funds that are not bond improvement funds may be used for	16281
any purpose. The Controlling Board may, for bond improvement	16282
funds, create appropriation items or increase appropriation	16283
authority in existing appropriation items equaling the amount of	16284
such proceeds. Such amounts approved by the Controlling Board are	16285
hereby appropriated. Such proceeds deposited in bond improvement	16286
funds shall not be expended until released by the Controlling	16287
Board, which shall require certification by the Director of Budget	16288
and Management that such proceeds are sufficient and available to	16289
fund the additional anticipated expenditures.	16290

Section 24.01. OBLIGATIONS ISSUED UNDER ORC CHAPTER 151.

16291

The capital improvements for which appropriations are made in	16292
this act from the Ohio Parks and Natural Resources Fund (Fund	16293
031), the School Building Program Assistance Fund (Fund 032), the	16294
Higher Education Improvement Fund (Fund 034), the Clean Ohio	16295
Conservation Fund (Fund 056), the Clean Ohio Agricultural Easement	16296
Fund (Fund 057), and the Clean Ohio Trail Fund (Fund 061) are	16297
determined to be capital improvements and capital facilities for	16298
natural resources, a statewide system of common schools,	16299
state-supported and state-assisted institutions of higher	16300
education, and conservation purposes (under the Clean Ohio	16301
program) and are designated as capital facilities to which	16302
proceeds of obligations issued under Chapter 151. of the Revised	16303
Code are to be applied.	16304

Section 24.02.  OBLIGATIONS ISSUED UNDER ORC CHAPTER 152.

16305

The capital improvements for which appropriations are made in	16306
this act from the Sports Facilities Building Fund (Fund 024), the	16307
Highway Safety Building Fund (Fund 025), the Administrative	16308
Building Fund (Fund 026), the Adult Correctional Building Fund	16309
(Fund 027), the Juvenile Correctional Building Fund (Fund 028),	16310
the Transportation Building Fund (Fund 029), and the Arts	16311
Facilities Building Fund (Fund 030) are determined to be capital	16312
improvements and capital facilities for housing state agencies and	16313
branches of state government and their functions and are	16314
designated as capital facilities to which proceeds of obligations	16315
issued under Chapter 152. of the Revised Code are to be applied.	16316

The owners or holders of obligations issued under Chapter	16317
152. of the Revised Code have no right to have excises or taxes	16318
levied by the General Assembly for the payment of interest or	16319
principal thereon.	16320

Section 24.03.  OBLIGATIONS ISSUED UNDER ORC CHAPTER 154.

16321

The capital improvements for which appropriations are made in	16322
this act from the Mental Health Facilities Improvement Fund (Fund	16323
033) and the Parks and Recreation Improvement Fund (Fund 035) are	16324
determined to be capital improvements and capital facilities for	16325
mental hygiene and retardation and parks and recreation and are	16326
designated as capital facilities to which proceeds of obligations	16327
issued under Chapter 154. of the Revised Code are to be applied.	16328

The owners or holders of obligations issued under Chapter	16329
154. of the Revised Code have no right to have excises or taxes	16330
levied by the General Assembly for the payment of principal or	16331
interest thereon.	16332

Section 25.01.  TRANSFER OF OPEN ENCUMBRANCES

16333

Upon the request of the agency to which a capital project	16334
appropriation item is appropriated, the Director of Budget and	16335
Management may transfer open encumbrance amounts between separate	16336
encumbrances for the project appropriation item to the extent that	16337
any reductions in encumbrances are agreed to by the contracting	16338
vendor and the agency.	16339

Section 26.01.  LITIGATION PROCEEDS TO THE ADMINISTRATIVE	16340
BUILDING FUND	16341

Any proceeds received by the State of Ohio as the result of	16342
litigation or a settlement agreement related to any liability for	16343
the planning, design, engineering, construction, or construction	16344
management of such facilities operated by the Department of	16345
Administrative Services shall be deposited into the Administrative	16346
Building Fund (Fund 026).	16347

Section 27.01. COAL RESEARCH AND DEVELOPMENT BONDS

16348

The Ohio Public Facilities Commission, upon the request of	16349
the Director of the Ohio Coal Development Office with the advice	16350
of the Technical Advisory Committee created in section 1551.35 of	16351
the Revised Code and the approval of the Director of Development,	16352
is hereby authorized to issue and sell, in accordance with Section	16353
15 of Article VIII, Ohio Constitution, and Chapter 151., and	16354
particularly sections 151.01 and 151.07 and other applicable	16355
sections of the Revised Code, bonds or other obligations of the	16356
State of Ohio heretofore authorized by prior acts of the General	16357
Assembly. The obligations shall be issued, subject to applicable	16358
constitutional and statutory limitations, to provide sufficient	16359
moneys to the credit of the Coal Research and Development Fund	16360
created in section 1555.15 of the Revised Code to pay costs	16361
charged to such fund when due as estimated by the Director of the	16362
Ohio Coal Development Office.	16363

Section 28.01. OHIO ADMINISTRATIVE KNOWLEDGE SYSTEM PROJECT

16364

The Ohio administrative knowledge system (OAKS) will be an	16365
enterprise resource planning system that will replace the state's	16366
central services infrastructure systems, including the central	16367
accounting system, the human resources/payroll system, the capital	16368
improvements projects tracking system, the fixed assets management	16369
system, and the procurement system. The Department of	16370
Administrative Services, in conjunction with the Office of Budget	16371
and Management, may acquire the system, including, but not limited	16372
to, the enterprise resource planning software and installation and	16373
implementation thereof pursuant to Chapter 125. of the Revised	16374
Code. Any lease-purchase arrangement utilized under Chapter 125.	16375
of the Revised Code shall provide at the end of the lease period	16376
that OAKS shall become the property of the state without cost.	16377

Section 29.01.  Sections 2.01 to 27.01 of this act shall	16378
remain in full force and effect commencing on July 1, 2002, and	16379
terminating on June 30, 2004, for the purpose of drawing money	16380
from the state treasury in payment of liabilities lawfully	16381
incurred hereunder, and on June 30, 2004, and not before, the	16382
moneys hereby appropriated shall lapse into the funds from which	16383
they are severally appropriated. Because if, under Ohio	16384
Constitution, Article II, Section 1c, Sections 2.01 to 27.01 of	16385
this act do not take effect until after July 1, 2002, Sections	16386
2.01 to 27.01 of this act shall be and remain in full force and	16387
effect commencing on that later effective date.	16388

Section 30.01.  That Section 9 of Am. Sub. S.B. 242 of the	16389
124th General Assembly be amended to read as follows:	16390

Sec. 9. BOR BOARD OF REGENTS

16391

Tobacco Master Settlement Agreement Fund Group

16392

Section 30.02.  That existing Section 9 of Am. Sub. S.B. 242	16402
of the 124th General Assembly is hereby repealed.	16403

Section 30.03.  All items in this section are hereby	16404
appropriated as designated out of any moneys in the state treasury	16405
to the credit of the designated fund. For all appropriations made	16406
in this act, those in the first column are for fiscal year 2003	16407
and those in the second column are for fiscal year 2004.	16408

Appropriations

DEV DEPARTMENT OF DEVELOPMENT

16409

BIOMEDICAL RESEARCH AND TECHNOLOGY TRANSFER TRUST FUND

16414

On July 1, 2003, or the earliest date thereafter permitted by	16415
law, the Biomedical Research and Technology Transfer Trust Fund	16416
(Fund M87) shall be transferred from the Board of Regents to the	16417
Department of Development. At the request of the Board of Regents,	16418
the Director of Budget and Management may cancel encumbrances in	16419
the fund from Board of Regents appropriation item 235-405,	16420
Biomedical Research and Technology Transfer Commission, and	16421
reestablish such encumbrances or parts of encumbrances in fiscal	16422
year 2004 for the same purpose and to the same vendor in	16423
Department of Development appropriation item 195-435, Biomedical	16424
Research and Technology Transfer Trust Fund. The Director of	16425
Budget and Management shall reduce the appropriation balances in	16426
fiscal year 2003 by the amount of the encumbrances canceled in the	16427
Fund. As determined by the Director of Budget and Management, the	16428
appropriation authority necessary to reestablish such encumbrances	16429
or parts of encumbrances in fiscal year 2004 for the Department of	16430
Development is hereby appropriated.	16431

The foregoing appropriation item 195-435, Biomedical Research	16432
and Technology Transfer Trust Fund, shall be used by the	16433
Department of Development to support the duties and	16434
responsibilities of the Third Frontier Commission that are related	16435
to biomedical research and technology as required under sections	16436
184.01 and 184.02 of the Revised Code and in harmony with the	16437
intention of the General Assembly for the use of tobacco master	16438
settlement payments for biomedical research and technology.	16439

Section 30.04. On July 1, 2003, the Biomedical Research and	16440
Technology Transfer Commission is abolished and all of its	16441
functions are transferred to the Third Frontier Commission. The	16442
Third Frontier Commission is thereupon and thereafter successor	16443
to, assumes the obligations of, and otherwise constitutes the	16444
continuation of the Biomedical Research and Technology Transfer	16445
Commission.	16446

Any business commenced but not completed by the Biomedical	16447
Research and Technology Transfer Commission on July 1, 2003, shall	16448
be completed by the Third Frontier Commission in the same manner,	16449
and with the same effect, as if completed by the Biomedical	16450
Research and Technology Transfer Commission. No validation, cure,	16451
right, privilege, remedy, obligation, or liability is lost or	16452
impaired by reason of the transfer of functions required by this	16453
section but shall be administered by the Third Frontier	16454
Commission. All of the Biomedical Research and Technology Transfer	16455
Commission's rules, orders, and determinations continue in effect	16456
as rules, orders, and determinations of the Third Frontier	16457
Commission until modified or rescinded by the Third Frontier	16458
Commission. If necessary to ensure the integrity of the numbering	16459
of the Administrative Code, the Director of the Legislative	16460
Service Commission shall renumber the Biomedical Research and	16461
Technology Transfer Commission's rules as appropriate to reflect	16462
their transfer to the Third Frontier Commission.	16463

All employees of the Biomedical Research and Technology	16464
Transfer Commission are transferred to the Third Frontier	16465
Commission.	16466

Wherever the Biomedical Research and Technology Transfer	16467
Commission is referred to in any law, contract, or other document	16468
relating to the transferred functions, the reference shall be	16469
deemed to refer to the Third Frontier Commission.	16470

No action or proceeding pending on July 1, 2003, is affected	16471
by the transfer. Such actions and proceedings shall be prosecuted	16472
or defended in the name of the Third Frontier Commission. The	16473
Third Frontier Commission shall be substituted as a party upon	16474
application to the court or other appropriate tribunal.	16475

Section 30.05. Sections 30.01 to 30.05 of this act are not	16476
subject to the referendum. Therefore, under Ohio Constitution,	16477
Article II, Section 1d and section 1.471 of the Revised Code, the	16478
sections go into immediate effect when this act becomes law.	16479

Section 31.01. Section 25 of Am. Sub. S.B. 261 of the 124th	16480
General Assembly is hereby repealed.	16481

Section 32.01.  Notwithstanding the requirement under	16482
division (B) of section 5709.40 of the Revised Code for an	16483
ordinance to designate specific public improvements made, to be	16484
made, or in the process of being made by the municipal corporation	16485
that directly benefit one or more parcels identified in the	16486
ordinance, not later than June 30, 2003, the legislative authority	16487
of an impacted city, as defined in section 1728.01 of the Revised	16488
Code, may include a determination in an ordinance adopted under	16489
section 5709.40 of the Revised Code that satisfactory provision	16490
has been made for the public improvement needs of the parcels	16491
identified in the ordinance and may specify other public	16492
improvements made, to be made, or in the process of being made in	16493
the city that do not directly benefit the parcel identified in the	16494
ordinance but are in support of urban redevelopment within the	16495
meaning of section 5709.41 of the Revised Code.	16496

Section 32.02. Section 32.01 of this act is hereby repealed	16497
on July 1, 2003.	16498

Section 33.01. (A) The Governor is hereby authorized to	16499
execute a deed in the name of the state conveying to a purchaser	16500
and the purchaser's successors and assigns or heirs and assigns,	16501
all of the state's right, title, and interest in the following	16502
described real estate:	16503

Situated in the City of Cincinnati, County of Hamilton, and	16504
State of Ohio, to-wit:	16505

Beginning at the Southeast corner of Lafayette Avenue and	16506
Middleton Avenue, Clifton and running thence Southwardly along the	16507
East line of Middleton Avenue, Two Hundred and Sixty-eight and	16508
Fifty-three hundredths (268.53) feet to a point in said East line	16509
of Middleton Avenue; thence Eastwardly at right angles to	16510
Middleton Avenue Two Hundred and One and Ninety-seven Hundredths	16511
(201.97) feet to a point in the East line of the property conveyed	16512
to Thomas Sherlock, Sr. by Horace B. Chaflin and wife by deed duly	16513
recorded in Deed Book No. 417, Page 192; thence Northwardly along	16514
the East line of said property conveyed by said Horace B. Chaflin	16515
and wife to Thomas Sherlock, Sr. Three Hundred and Fifty-two and	16516
Thirty Hundredths (352.30) feet to the South line of Lafayette	16517
Avenue, said point being the Northeast corner of said property	16518
conveyed by Horace B. Chaflin and wife to Thomas Sherlock, Sr.;	16519
thence Westwardly Two Hundred and Seventeen and Forty-seven	16520
Hundredths (217.47) feet along the South line of Lafayette Avenue	16521
to the place of beginning, said premises being a part of Lot No.	16522
Five (5) on the plat of Subdivision of the Clifton Farm, made by	16523
the Lafayette Bank of Cincinnati.	16524

(B) The Board of Trustees of the University of Cincinnati	16525
shall have the real estate described in division (A) of this	16526
section appraised by two disinterested persons.	16527

(C) Consideration for the real estate described in division	16528
(A) of this section shall be a purchase price acceptable to the	16529
Board of Trustees of the University of Cincinnati.	16530

(D) The purchaser shall pay the costs of the conveyance of	16531
the real estate described in division (A) of this section.	16532

(E) Upon the purchaser's payment of the purchase price for	16533
the real estate described in division (A) of this section and the	16534
request of the Board of Trustees of the University of Cincinnati,	16535
the Auditor of State, with the assistance of the Attorney General,	16536
shall prepare a deed to the real estate. The deed shall state the	16537
consideration. The deed shall be executed by the Governor in the	16538
name of the state, countersigned by the Secretary of State, sealed	16539
with the Great Seal of the State, presented in the Office of the	16540
Auditor of State for recording, and delivered to the purchaser.	16541
The purchaser shall present the deed for recording in the Office	16542
of the Hamilton County Recorder.	16543

(F) The net proceeds of the sale of the real estate	16544
described in division (A) of this section shall be deposited in	16545
the University of Cincinnati Endowment Fund (William Gray	16546
Endowment Fund).	16547

(G) This section expires one year after its effective date.

16548

Section 33.02.  (A) The Governor is hereby authorized to	16549
execute a deed in the name of the state conveying to the East	16550
Liverpool Young Men's Christian Association and its successors and	16551
assigns all of the state's right, title, and interest in the	16552
following described real estate:	16553

Situated in the City of East Liverpool, County of Columbiana	16554
and State of Ohio and known as being 75% of permanent parcel	16555
number 3750128.	16556

Being .86 acres, more or less, but subject to all legal	16557
highways.	16558

(B) Consideration for the conveyance of the real estate	16559
described in division (A) of this section is the conveyance from	16560
the East Liverpool Young Men's Christian Association to the state	16561
and its successors and assigns of the following described real	16562
estate or other real estate that is of similar value and size, is	16563
contiguous to the East Liverpool campus of the Kent State	16564
University, and is acceptable to the Kent State University:	16565

Situated in the City of East Liverpool, County of Columbiana	16566
and State of Ohio and known as being permanent parcel numbers	16567
3750196, 3706020, and 3709497.	16568

Being .86 acres, more or less, but subject to all legal	16569
highways.	16570

(C) The state shall pay the costs of the conveyances	16571
described in divisions (A) and (B) of this section.	16572

(D) The real estate described or referred to in division (B)	16573
of this section that is conveyed to the state shall be for the use	16574
and benefit of the Kent State University.	16575

(E) Upon the conveyance to the state of the real estate	16576
described or referred to in division (B) of this section, the	16577
Auditor of State, with the assistance of the Attorney General,	16578
shall prepare a deed to the real estate described in division (A)	16579
of this section. The deed shall state the consideration. The deed	16580
shall be executed by the Governor in the name of the state,	16581
countersigned by the Secretary of State, sealed with the Great	16582
Seal of the State, presented in the Office of the Auditor of State	16583
for recording, and delivered to the East Liverpool Young Men's	16584
Christian Association. The East Liverpool Young Men's Christian	16585
Association shall present the deed for recording in the Office of	16586
the Columbiana County Recorder.	16587

(E) This section expires one year after its effective date.

16588

Section 33.03. (A) The payment schedule set forth in division	16589
(B) of Section 9 of Am. Sub. S.B. 164 of the 124th General	16590
Assembly, for conveyance of the real estate described in division	16591
(A) of that section, shall be modified in accordance with this	16592
section.	16593

Whereas payments totaling $195,000 have been made by the	16594
Hamilton County Alcohol and Drug Addiction Services Board (the	16595
"grantee") as of June 30, 2002, the amount remaining to be paid,	16596
$405,000, shall be paid by the grantee as follows:	16597

(B) The Offer to Purchase executed by the state and the	16610
grantee with respect to the real estate shall be amended to	16611
reflect the payment schedule set forth in division (A) of this	16612
section.	16613

Section 34.01. (A)(1) Except as otherwise provided in	16614
division (A)(2) of this section, the amendment or enactment by	16615
this act of sections 5733.401, 5747.01, 5747.011, 5747.012,	16616
5747.02, or 5747.231 of the Revised Code apply to taxable years	16617
ending on or after the effective date of this section.	16618

(2) For taxable years beginning in 2002 and ending before	16619
the effective date of this section, each trust shall be rebuttably	16620
presumed to have made an election to apply such amendments or	16621
enactments to the trust's taxable year beginning in 2002. Each	16622
trust can rebut this presumption by notifying the Tax Commissioner	16623
in writing, before June 1, 2003, that the trust is not making the	16624
presumed election. A trust so notifying the Tax Commissioner may	16625
not thereafter make an election to apply such amendments and	16626
enactments in this act to the trust's taxable year beginning in	16627
2002. The presumed election becomes an irrevocable election for	16628
each trust that, before June 1, 2003, does not notify the tax	16629
commissioner in writing that the trust is not making the presumed	16630
election.	16631

(B) This section is not subject to the referendum. Therefore,	16632
under Ohio Constitution, Article II, Section 1d and section 1.471	16633
of the Revised Code, this section goes into immediate effect when	16634
this act becomes law.	16635

Section 35.01. Sections 1711.11, 1711.53, 2113.031, 4117.01,	16636
4117.14, 5731.21, 5733.021, 5733.26, 5733.40, 5733.401, 5747.01,	16637
and 5747.02 of the Revised Code, as amended by this act; section	16638
5747.231 of the Revised Code, as repealed and reenacted by this	16639
act; and sections 5747.011 and 5747.012 of the Revised Code, as	16640
enacted by this act, are not subject to the referendum. Therefore,	16641
under Ohio Constitution, Article II, Section 1d and section 1.471	16642
of the Revised Code, sections 1711.11, 1711.53, 2113.031, 4117.01,	16643
4117.14, 5731.21, 5733.021, 5733.26, 5733.40, 5733.401, 5747.01,	16644
and 5747.02 of the Revised Code, as amended by this act; section	16645
5747.231 of the Revised Code, as repealed and reenacted by this	16646
act; and sections 5747.011 and 5747.012 of the Revised Code, as	16647
enacted by this act, go into immediate effect when this act	16648
becomes law.	16649

Section 35.02.  Sections 102.02, 183.021, 183.19, 183.30,	16650
184.01, 184.02, and 184.03 of the Revised Code, as amended or	16651
enacted by this act, shall take effect July 1, 2003.	16652

Section 35.03. Section 5739.031 of the Revised Code takes	16653
effect July 1, 2003.	16654

Section 36.01.  Section 109.71 of the Revised Code is	16655
presented in this act as a composite of the section as amended by	16656
both Am. Sub. H.B. 163 and Am. S.B. 137 of the 123rd General	16657
Assembly. The General Assembly, applying the principle stated in	16658
division (B) of section 1.52 of the Revised Code that amendments	16659
are to be harmonized if reasonably capable of simultaneous	16660
operation, finds that the composite is the resulting version of	16661
the section in effect prior to the effective date of the section	16662
as presented in this act.	16663

Section 36.02.  Section 109.77 of the Revised Code is	16664
presented in this act as a composite of the section as amended by	16665
Sub. H.B. 148, Am. Sub. H.B. 163, and Am. S.B. 137 of the 123rd	16666
General Assembly. The General Assembly, applying the principle	16667
stated in division (B) of section 1.52 of the Revised Code that	16668
amendments are to be harmonized if reasonably capable of	16669
simultaneous operation, finds that the composite is the resulting	16670
version of the section in effect prior to the effective date of	16671
the section as presented in this act.	16672

Section 36.03.  Section 151.01 of the Revised Code is	16673
presented in this act as a composite of the section as amended by	16674
both Sub. H.B. 385 and Am. Sub. H.B. 524 of the 124th General	16675
Assembly. The General Assembly, applying the principle stated in	16676
division (B) of section 1.52 of the Revised Code that amendments	16677
are to be harmonized if reasonably capable of simultaneous	16678
operation, finds that the composite is the resulting version of	16679
the section in effect prior to the effective date of the section	16680
as presented in this act.	16681

Section 36.04.  Section 2935.01 of the Revised Code is	16682
presented in this act as a composite of the section as amended by	16683
both Sub. H.B. 427 and Sub. S.B. 200 of the 124th General	16684
Assembly. The General Assembly, applying the principle stated in	16685
division (B) of section 1.52 of the Revised Code that amendments	16686
are to be harmonized if reasonably capable of simultaneous	16687
operation, finds that the composite is the resulting version of	16688
the section in effect prior to the effective date of the section	16689
as presented in this act.	16690

Section 36.05.  Section 4117.01 of the Revised Code is	16691
presented in this act as a composite of the section as amended by	16692
both Am. Sub. S.B. 130 and Am. Sub. S.B. 229 of the 122nd the	16693
General Assembly. The General Assembly, applying the principle	16694
stated in division (B) of section 1.52 of the Revised Code that	16695
amendments are to be harmonized if reasonably capable of	16696
simultaneous operation, finds that the composite is the resulting	16697
version of the section in effect prior to the effective date of	16698
the section as presented in this act.	16699

Section 36.06.  Section 5739.026 of the Revised Code is	16700
presented in this act as a composite of the section as amended by	16701
both Am. Sub. S.B. 143 and Sub. S.B. 200 of the 124th General	16702
Assembly. The General Assembly, applying the principle stated in	16703
division (B) of section 1.52 of the Revised Code that amendments	16704
are to be harmonized if reasonably capable of simultaneous	16705
operation, finds that the composite is the resulting version of	16706
the section in effect prior to the effective date of the section	16707
as presented in this act.	16708

Section 36.07.  Section 5739.033 of the Revised Code is	16709
presented in this act as a composite of the section as amended by	16710
both Am. Sub. S.B. 143 and Sub. S.B. 200 of the 124th General	16711
Assembly. The General Assembly, applying the principle stated in	16712
division (B) of section 1.52 of the Revised Code that amendments	16713
are to be harmonized if reasonably capable of simultaneous	16714
operation, finds that the composite is the resulting version of	16715
the section in effect prior to the effective date of the section	16716
as presented in this act.	16717

Section 36.08.  Section 5902.02 of the Revised Code is	16718
presented in this act as a composite of the section as amended by	16719
both H.B. 471 and Am. Sub. S.B. 120 of the 123rd General Assembly.	16720
The General Assembly, applying the principle stated in division	16721
(B) of section 1.52 of the Revised Code that amendments are to be	16722
harmonized if reasonably capable of simultaneous operation, finds	16723
that the composite is the resulting version of the section in	16724
effect prior to the effective date of the section as presented in	16725
this act.	16726

Section 37.01. If any item of law that constitutes the whole	16727
or part of a codified or uncodified section of law contained in	16728
this act, or if any application of any item of law that	16729
constitutes the whole or part of a codified or uncodified section	16730
of law contained in this act, is held invalid, the invalidity does	16731
not affect other items of law or applications of items of law that	16732
can be given effect without the invalid item of law or	16733
application. To this end, the items of law of which the codified	16734
and uncodified sections contained in this act are composed, and	16735
their applications, are independent and severable.	16736