REPRESENTATIVES Evans, Schmidt, Metzger

To amend sections 126.02, 183.02, 183.04, 183.06,

1

183.12, 183.14, 183.20, 183.30, 1333.11, 2927.02,

2

5743.03, and 5743.99, to enact sections 183.34 and

3

183.35, and to repeal section 183.31 of the Revised

4

Code; to amend Section 32 of Am. Sub. H.B. 405 of

5

the 124th General Assembly; and to repeal Section

6

103.03 of Am. Sub. H.B. 94 of the 124th General

7

Assembly to modify the administration of tobacco

8

settlement funds, to modify the Unfair Cigarette

9

Sales Act relative to the determination of a

10

wholesaler's markup and a retailer's cost of doing

11

business, to prohibit the manufacture or sale of a

12

pack of cigarettes containing fewer than 20 or a

13

package of roll-your-own tobacco containing less

14

than 0.6 of an ounce, and to make operating and

15

capital appropriations for the biennium beginning

16

July 1, 2002, and ending June 30, 2004.

17

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

Section 1. That sections 126.02, 183.02, 183.04, 183.06,	18
183.12, 183.14, 183.20, 183.30, 1333.11, 2927.02, 5743.03, and	19
5743.99 be amended and sections 183.34 and 183.35 of the Revised	20
Code be enacted to read as follows:	21

Sec. 126.02.  The director of budget and management shall	22
prepare and submit to the governor, biennially, not later than the	23
first day of January preceding the convening of the general	24
assembly, state budget estimates of revenues and expenditures for	25
each state fund and budget estimates for each state agency, except	26
such estimates as are required under section 126.22126.022 of the	27
Revised Code. The budget estimates for each state agency for	28
which direct appropriations are proposed shall include the	29
following details:	30

(A) Estimates of the operating budget;

31

(B) Estimates of the subsidy appropriations necessary,	32
delineated by a distinct subsidy program;	33

(C) Estimates for special purposes, delineated by a distinct	34
special purpose program;	35

(D) Estimates of appropriations necessary from each fund in	36
reasonable detail to allow for adequate planning and oversight of	37
programs and activities.	38

In the preparation of state revenue and expenditure	39
estimates, the director of budget and management shall, not later	40
than the fifteenth day of September in the year preceding the	41
first regular session of the general assembly, distribute to all	42
affected state agencies the forms necessary for the preparation of	43
budget requests, which shall be in the form prescribed by the	44
director in consultation with the legislative budget office of the	45
legislative service commission to procure information concerning	46
the revenues and expenditures for the preceding and current	47
bienniums, an estimate of the revenues and expenditures of the	48
current fiscal year, and an estimate of the revenues and proposed	49
expenditures for the respective agencies for the two succeeding	50
fiscal years for which appropriations have to be made. Each such	51
agency shall, not later than the first day of November, file with	52
the director its estimate of revenues and proposed expenditures	53
for the succeeding biennium.	54

Each such agency shall, not later than the first day of	55
December, file with the chairperson of the finance committees of	56
the senate and house of representatives and the legislative budget	57
officeservice commission a duplicate copy of such budget request.	58

The budget request shall be accompanied by a statement in	59
writing giving facts and explanation of reasons for the items	60
requested. The director and the legislative budget officeservice	61
commission may make further inquiry and investigation as to any	62
item desired. The director may approve, disapprove, or alter the	63
requests, excepting those for the legislative and judicial	64
branches of the state. The requests as revised by the director	65
constitute the state budget estimates of revenues and expenditures	66
which the director is required to submit to the governor.	67

Sec. 183.02.  This section's references to years mean state	68
fiscal years.	69

All payments received by the state pursuant to the tobacco	70
master settlement agreement shall be deposited into the state	71
treasury to the credit of the tobacco master settlement agreement	72
fund, which is hereby created. All investment earnings of the	73
fund shall also be credited to the fund. Except as provided in	74
division (I)(K) of this section, payments and interest credited to	75
the fund shall be transferred by the director of budget and	76
management as follows:	77

(A)(1) Of the first payment credited to the tobacco master	78
settlement agreement fund in 2000 and the net amounts credited to	79
the fund annually from 2000 to 2006 and in 2012, the following	80
amount or percentage shall be transferred to the tobacco use	81
prevention and cessation trust fund, created in section 183.03 of	82
the Revised Code:	83

(2) Of the net amounts credited to the tobacco master	94
settlement agreement fund in 2013, the director shall transfer to	95
the tobacco use prevention and cessation trust fund the amount not	96
transferred to the tobacco use prevention and cessation trust fund	97
from the net amounts credited to the tobacco master settlement	98
agreement fund in 2002 due to Am. Sub. H.B. No. 405 and Am. Sub.	99
S.B. No. 242 of the 124th general assembly. Of the net amounts	100
credited to the tobacco master settlement agreement fund in 2014,	101
the director shall transfer to the tobacco use prevention and	102
cessation trust fund the amount not transferred to the tobacco use	103
prevention and cessation trust fund from the net amounts credited	104
to the tobacco master settlement agreement fund in 2003 due to Am.	105
Sub. H.B. No. 405 and Am. Sub. S.B. No. 242 of the 124th general	106
assembly.	107

(B) Of the first payment credited to the tobacco master	108
settlement agreement fund in 2000 and the net amounts credited to	109
the fund annually in 2000 and 2001, the following amount or	110
percentage shall be transferred to the law enforcement	111
improvements trust fund, created in section 183.10 of the Revised	112
Code:	113

(C)(1) Of the first payment credited to the tobacco master	118
settlement agreement fund in 2000 and the net amounts credited to	119
the fund annually from 2000 to 2011, the following percentages	120
shall be transferred to the southern Ohio agricultural and	121
community development trust fund, created in section 183.11 of the	122
Revised Code:	123

(2) Of the net amounts credited to the tobacco master	135
settlement agreement fund in 2013, the director shall transfer to	136
the southern Ohio agricultural and community development trust	137
fund the amount not transferred to the southern Ohio agricultural	138
and community development trust fund from the net amounts credited	139
to the tobacco master settlement agreement fund in 2002 due to Am.	140
Sub. H.B. No. 405 and Am. Sub. S.B. No. 242 of the 124th general	141
assembly. Of the net amounts credited to the tobacco master	142
settlement agreement fund in 2014, the director shall transfer to	143
the southern Ohio agricultural and community development trust	144
fund the amount not transferred to the southern Ohio agricultural	145
and community development trust fund from the net amounts credited	146
to the tobacco master settlement agreement fund in 2003 due to Am.	147
Sub. H.B. No. 405 and Am. Sub. S.B. No. 242 of the 124th general	148
assembly.	149

(D)(1) The following percentages of the net amounts credited	150
to the tobacco master settlement agreement fund annually shall be	151
transferred to Ohio's public health priorities trust fund, created	152
in section 183.18 of the Revised Code:	153

(2) Of the net amounts credited to the tobacco master	168
settlement agreement fund in 2013, the director shall transfer to	169
the OhioOhio's public health priorities trust fund the amount not	170
transferred to the OhioOhio's public health priorities trust fund	171
from the net amounts credited to the tobacco master settlement	172
agreement fund in 2002 due to Am. Sub. H.B. No. 405 and Am. Sub.	173
S.B. No. 242 of the 124th general assembly. Of the net amounts	174
credited to the tobacco master settlement agreement fund in 2014,	175
the director shall transfer to the OhioOhio's public health	176
priorities trust fund the amount not transferred to the Ohio	177
Ohio's public health priorities trust fund from the net amounts	178
credited to the tobacco master settlement agreement fund in 2003	179
due to Am. Sub. H.B. No. 405 and Am. Sub. S.B. No. 242 of the	180
124th general assembly.	181

(E) The following percentages of the net amounts credited to	182
the tobacco master settlement agreement fund annually shall be	183
transferred to the biomedical research and technology transfer	184
trust fund, created in section 183.19 of the Revised Code:	185

(F) Of the amounts credited to the tobacco master settlement	197
agreement fund annually, the following amounts shall be	198
transferred to the education facilities trust fund, created in	199
section 183.26 of the Revised Code:	200

(G) Of the amounts credited to the tobacco master settlement	212
agreement fund annually, from 2000 to 2012 five million dollars	213
per year shall be transferred to the education facilities	214
endowment fund, created in section 183.27 of the Revised Code.	215
From 2013 to 2025, the following percentages of the amounts	216
credited to the tobacco master settlement agreement fund annually	217
shall be transferred to the endowment fund:	218

(H) The following percentages of the net amounts credited to	223
the tobacco master settlement agreement fund annually shall be	224
transferred to the education technology trust fund, created in	225
section 183.28 of the Revised Code:	226

(I) In each year from 2003 to 2025, after the transfers made	241
under divisions (F) and (G) of this section but prior to the	242
transfers made under divisions (A) to (E) of this section, the	243
director of budget and management shall transfer to the tobacco	244
settlement oversight, administration, and enforcement fund created	245
in section 183.34 of the Revised Code such amount as the director	246
determines necessary to pay the costs incurred by the attorney	247
general in tobacco settlement oversight, administration, and	248
enforcement.	249

(J) In each year from 2003 to 2025, after the transfers	250
made under divisions (F) and (G) of this section but prior to the	251
transfers made under divisions (A) to (E) of this section, the	252
director of budget and management shall transfer to the tobacco	253
settlement enforcement fund created in section 183.35 of the	254
Revised Code such amount as the director determines necessary to	255
pay the costs incurred by the tax commissioner in the enforcement	256
of divisions (F) and (G) of section 5743.03 of the Revised Code.	257

(K) If in any year from 2001 to 2012 the payments and	258
interest credited to the tobacco master settlement agreement fund	259
during the year amount to less than the amounts required to be	260
transferred to the education facilities trust fund and the	261
education facilities endowment fund that year, the director of	262
budget and management shall make none of the transfers required by	263
divisions (A) to (H)(J) of this section.	264

(J)(L) If in any year from 2000 to 2025 the payments	265
credited to the tobacco master settlement agreement fund during	266
the year exceed the following amounts, the director of budget and	267
management shall transfer the excess to the income tax reduction	268
fund, created in section 131.44 of the Revised Code:	269

Sec. 183.04.  There is hereby created the tobacco use	281
prevention and control foundation, the general management of which	282
is vested in a board of trustees of twentytwenty-four members as	283
follows:	284

(A) Eight members who are health professionals, health	285
researchers, or representatives of health organizations. Two of	286
these members shall be appointed by the governor, two by the	287
speaker of the house of representatives, one by the minority	288
leader of the house of representatives, two by the president of	289
the senate, and one by the minority leader of the senate.	290

(B) Two members, one of whom has experience in financial	291
planning and accounting and one of whom has experience in media	292
and mass marketing, who shall be appointed by the governor;	293

(C) One member, who shall be appointed by the governor from	294
a list of at least three individuals recommended by the American	295
cancer society;	296

(D) One member, who shall be appointed by the governor from	297
a list of at least three individuals recommended by the American	298
heart association;	299

(E) One member, who shall be appointed by the governor from	300
a list of at least three individuals recommended by the American	301
lung association;	302

(F) One member, who shall be appointed by the governor from	303
a list of at least three individuals recommended by the	304
association of hospitals and health systems;	305

(G) One member, who shall be appointed by the governor from	306
a list of at least three individuals recommended by the Ohio state	307
medical association;	308

(H) One member, who shall be appointed by the governor from	309
a list of at least three individuals recommended by the	310
association of Ohio health commissioners;	311

(I) One member, who shall be appointed by the governor from	312
a list of at least three individuals recommended by the Ohio	313
dental association;	314

(J) One nonvoting member, who shall be a member of the house	315
of representatives of the political party of which the speaker of	316
the house of representatives is a member and who shall be	317
appointed by the speaker;	318

(K) One nonvoting member, who shall be a member of the house	319
of representatives of the major political party of which the	320
speaker of the house of representatives is not a member and who	321
shall be appointed by the speaker;	322

(L) One nonvoting member, who shall be a member of the senate	323
of the political party of which the president of the senate is a	324
member and who shall be appointed by the president;	325

(M) One nonvoting member, who shall be a member of the senate	326
of the major political party of which the president of the senate	327
is not a member and who shall be appointed by the president;	328

(N) The director of health, executive director of the	329
commission on minority health, and attorney general, who shall	330
serve as ex officio members.	331

The appointments of the governor shall be with the advice and	332
consent of the senate.	333

Terms of office for the non-legislative members appointed by	334
the governor, president, speaker, and minority leaders shall be	335
for five years. The terms of legislative members shall be for the	336
biennial session of the general assembly in which they are	337
appointed. Each member shall hold office from the date of	338
appointment until the end of the term for which the member was	339
appointed. Any member appointed to fill a vacancy occurring prior	340
to the expiration of the term for which the member's predecessor	341
was appointed shall hold office for the remainder of that term.	342
Any member shall continue in office subsequent to the expiration	343
date of the member's term until the member's successor takes	344
office, or until a period of sixty days has elapsed, whichever	345
occurs first. A vacancy in an unexpired term shall be filled in	346
the same manner as the original appointment. The governor may	347
remove any non-legislative member for malfeasance, misfeasance, or	348
nonfeasance after a hearing in accordance with Chapter 119. of the	349
Revised Code.	350

The members of the board shall serve without compensation but	351
shall receive their reasonable and necessary expenses incurred in	352
the conduct of foundation business.	353

Sections 101.82 to 101.87 of the Revised Code do not apply	354
to the foundation.	355

Sec. 183.06.  The board of trustees of the tobacco use	356
prevention and control foundation shall appoint and set the	357
compensation of an executive director and other employees needed	358
to carry out the duties of the foundation. Before entering upon	359
the discharge of the duties of office, the executive director	360
shall give a bond to the state, to be approved by the governor,	361
conditioned for the faithful performance of the duties of office.	362
The executive director and the other employees of the foundation	363
are state employees and serve in the unclassified service.	364

There is hereby created in the state treasury the tobacco use	365
prevention and control operating expenses fund. The treasurer of	366
state shall periodically pay into the fund, from the tobacco use	367
prevention and control endowment fund created in section 183.08 of	368
the Revised Code, amounts requested by the foundation to pay the	369
compensation of state employees of the foundation. Amounts	370
credited to the operating expenses fund shall be used by the	371
foundation solely to pay the compensation of the state employees	372
of the foundation. All investment earnings of the operating	373
expenses fund shall be credited to the fund.	374

Sec. 183.12.  There is hereby created the southern Ohio	375
agricultural and community development foundation, the general	376
management of which is vested in a board of trustees of twelve	377
sixteen members as follows:	378

(A) The director of agriculture, director of development,	379
executive director of the Ohio rural development partnership, and	380
director or designee of the director of the Ohio state university	381
extension, who shall serve as ex officio officers;	382

(B) Two residents of major tobacco-producing counties with	383
experience in local agricultural economic development or community	384
development, who shall be appointed by the governor;	385

(C) Three active farmers from major tobacco-producing	386
counties, who shall be appointed by the governor, two of whom	387
shall be appointed from a list of at least four individuals	388
recommended by the Ohio farm bureau and one of whom shall be	389
appointed from a list of at least two individuals recommended by	390
the farmers' union;	391

(D) Three active tobacco farmers from major	392
tobacco-producing counties, who shall be appointed by the governor	393
from a list of at least six individuals recommended by the Ohio	394
tobacco growers association;	395

(E) One nonvoting member, who shall be a member of the house	396
of representatives of the political party of which the speaker of	397
the house of representatives is a member and who shall be	398
appointed by the speaker;	399

(F) One nonvoting member, who shall be a member of the house	400
of representatives of the major political party of which the	401
speaker of the house of representatives is not a member and who	402
shall be appointed by the speaker;	403

(G) One nonvoting member, who shall be a member of the senate	404
of the political party of which the president of the senate is a	405
member and who shall be appointed by the president;	406

(H) One nonvoting member, who shall be a member of the senate	407
of the major political party of which the president of the senate	408
is not a member and who shall be appointed by the president.	409

The appointments of the governor shall be with the advice and	410
consent of the senate.	411

Terms of office for the members appointed by the governor	412
shall be for five years. The terms of legislative members shall be	413
for the biennial session of the general assembly in which they are	414
appointed. Each such member shall hold office from the date of	415
appointment until the end of the term for which the member was	416
appointed. Any member appointed by the governor to fill a vacancy	417
occurring prior to the expiration of the term for which the	418
member's predecessor was appointed shall hold office for the	419
remainder of suchthat term. Any member appointed by the governor	420
shall continue in office subsequent to the expiration date of the	421
member's term until the member's successor takes office, or until	422
a period of sixty days has elapsed, whichever occurs first. The	423
governor may remove any non-legislative member appointed by the	424
governor for malfeasance, misfeasance, or nonfeasance after a	425
hearing in accordance with Chapter 119. of the Revised Code.	426

A vacancy on the board shall be filled in the same manner as	427
the original appointment.	428

The members of the board shall serve without compensation but	429
shall receive their reasonable and necessary expenses incurred in	430
the conduct of foundation business.	431

Sections 101.82 to 101.87 of the Revised Code do not apply	432
to the foundation.	433

As used in this section, "major tobacco-producing counties"	434
means any of the counties, ranked in descending order of pounds	435
produced, where ninety-five per cent of the 1998 burley tobacco	436
quota for the state was produced.	437

Sec. 183.14.  The board of trustees of the southern Ohio	438
agricultural and community development foundation shall appoint	439
and set the compensation of an executive director and other	440
employees needed to carry out the duties of the foundation.	441
Before entering upon the discharge of the duties of office, the	442
executive director shall give a bond to the state, to be approved	443
by the governor, conditioned for the faithful performance of the	444
duties of office. The executive director and the other employees	445
of the foundation are state employees and serve in the	446
unclassified service.	447

There is hereby created in the state treasury the southern	448
Ohio agricultural and community development operating expenses	449
fund. The treasurer of state shall periodically pay into the	450
fund, from the southern Ohio agricultural and community	451
development foundation endowment fund created in section 183.16 of	452
the Revised Code, amounts requested by the foundation to pay the	453
compensation of the state employees of the foundation. Amounts	454
credited to the operating expenses fund shall be used by the	455
foundation solely to pay the compensation of the state employees	456
of the foundation. All investment earnings of the operating	457
expenses fund shall be credited to the fund.	458

Sec. 183.20.  There is hereby created the biomedical research	459
and technology transfer commission within the Ohio board of	460
regents. The commission shall consist of twenty-fivetwenty-nine	461
members as follows:	462

(A) The chancellor of the board, director of development,	463
director of health, and executive director of the commission on	464
minority health, who shall serve as ex officio members;	465

(B) The director of budget and management, who shall serve	466
as an ex officio member, or the director's designee;	467

(C) Twelve members, who shall not be or represent potential	468
recipients of grants from the commission, appointed as follows:	469

(1) Six members, appointed by the governor, at least two of	470
whom are experts in commercializing the results of biomedical	471
research;	472

(2) Two members, in addition to the member described in	473
division (E) of this section, appointed by the speaker of the	474
house of representatives;	475

(3) One member, in addition to the member described in	476
division (F) of this section, appointed by the minority leader of	477
the house of representatives;	478

(4) Two members, in addition to the member described in	479
division (G) of this section, appointed by the president of the	480
senate;	481

(5) One member, in addition to the member described in	482
division (H) of this section, appointed by the minority leader of	483
the senate.	484

(D) Eight nonvoting members appointed by the governor,	485
representing Ohio's biomedical research institutions;	486

(E) One nonvoting member, who shall be a member of the house	487
of representatives of the political party of which the speaker of	488
the house of representatives is a member and who shall be	489
appointed by the speaker;	490

(F) One nonvoting member, who shall be a member of the house	491
of representatives of the major political party of which the	492
speaker of the house of representatives is not a member and who	493
shall be appointed by the speaker;	494

(G) One nonvoting member, who shall be a member of the senate	495
of the political party of which the president of the senate is a	496
member and who shall be appointed by the president;	497

(H) One nonvoting member, who shall be a member of the senate	498
of the major political party of which the president of the senate	499
is not a member and who shall be appointed by the president.	500

Before making their appointments of the non-legislative	501
members, the governor, speaker, president, and minority leaders	502
shall solicit, from the state's medical colleges, dental colleges,	503
and medical research institutions, the national institutes of	504
health, and other sources familiar with experts in the field of	505
biomedical research and in commercializing the results of	506
biomedical research, recommendations as to whom to appoint.	507

The appointments of the governor shall be with the advice and	508
consent of the senate.	509

Terms of office for the non-legislative members appointed by	510
the governor, president, speaker, and minority leaders shall be	511
for five years. The terms of legislative members shall be for the	512
biennial session of the general assembly in which they are	513
appointed. Each member shall hold office from the date of	514
appointment until the end of the term for which the member was	515
appointed. Any member appointed to fill a vacancy occurring prior	516
to the expiration of the term for which the member's predecessor	517
was appointed shall hold office for the remainder of suchthat	518
term. Any member shall continue in office subsequent to the	519
expiration date of the member's term until the member's successor	520
takes office, or until a period of sixty days has elapsed,	521
whichever occurs first. A vacancy in an unexpired term shall be	522
filled in the same manner as the original appointment. The	523
governor may remove any non-legislative member for malfeasance,	524
misfeasance, or nonfeasance after a hearing in accordance with	525
Chapter 119. of the Revised Code.	526

The members of the commission shall serve without	527
compensation but shall receive their reasonable and necessary	528
expenses incurred in the conduct of commission business.	529

Sections 101.82 to 101.87 of the Revised Code do not apply	530
to the commission.	531

Sec. 183.30.  (A) Except as provided in division (D) of this	532
section, no more than five per cent of the total expenditures of	533
the tobacco use prevention and control foundation in a fiscal year	534
shall be for administrative expenses of the foundation.	535

(B) Except as provided in division (D) of this section, no	536
more than five per cent of the total expenditures of the southern	537
Ohio agricultural and community development foundation in a fiscal	538
year shall be for administrative expenses of the foundation.	539

(C) Except as provided in division (D) of this section, no	540
more than five per cent of the total expenditures of the	541
biomedical research and technology transfer commission in a fiscal	542
year shall be for administrative expenses of the commission.	543

(D) This section's five per cent limitation on	544
administrative expenses does not apply into any fiscal years 2001	545
and 2002, provided the foundation or commission seeking to spend	546
more than five per cent has submitted a spending plan toyear for	547
which the controlling board and the controlling board has approved	548
theapproves a spending plan that the foundation or commission	549
submits to the board.	550

Sec. 183.34. There is hereby created in the state treasury	551
the tobacco settlement oversight, administration, and enforcement	552
fund, to which shall be credited amounts transferred under	553
division (I) of section 183.02 of the Revised Code. The attorney	554
general shall use the fund to pay costs incurred in the oversight,	555
administration, and enforcement of the tobacco master settlement	556
agreement.	557

Sec. 183.35. There is hereby created in the state treasury	558
the tobacco settlement enforcement fund, to which shall be	559
credited amounts transferred under division (J) of section 183.02	560
of the Revised Code. The tax commissioner shall use the fund to	561
pay costs incurred in the enforcement of divisions (F) and (G) of	562
section 5743.03 of the Revised Code.	563

Sec. 1333.11.  As used in sections 1333.11 to 1333.21 of the	564
Revised Code:	565

(A) "Cost to the retailer" means the invoice cost of	566
cigarettes to the retailer, or the replacement cost of cigarettes	567
to the retailer within thirty days prior to the date of sale, in	568
the quantity last purchased, whichever is lower, less all trade	569
discounts except customary discounts for cash, to which shall be	570
added the cost of doing business by the retailer as evidenced by	571
the standards and the methods of accounting regularly employed by	572
the retailer in the retailer's allocation of overhead costs and	573
expenses, paid or incurred. "Cost to the retailer" must include,	574
without limitation, labor, including salaries of executives and	575
officers, rent, depreciation, selling costs, maintenance of	576
equipment, delivery costs, all types of licenses, insurance,	577
advertising, and taxes, exclusive of county cigarette taxes paid	578
or payable on the cigarettes. Where the sale to the retailer is	579
on a cash and carry basis, the cartage to the retail outlet, if	580
performed or paid for by the retailer, shall be added to the	581
invoice cost of the cigarettes to the retailer. In the absence of	582
proof of a lesser or higher cost by the retailer, the cartage cost	583
shall be three-fourths of one per cent of the invoice cost of the	584
cigarettes to the retailer, not including the amount added thereto	585
by the wholesaler for the face value of state and county cigarette	586
tax stamps affixed to each package of cigarettes.	587

(B) In the absence of proof of a lesser or higher cost of	588
doing business by the retailer making the sale, the cost of doing	589
business to the retailer shall be sixeight per cent of the	590
invoice cost of the cigarettes to the retailer exclusive of the	591
face value of county cigarette taxes paid on the cigarettes or of	592
the replacement cost of the cigarettes to the retailer within	593
thirty days prior to the date of sale in the quantity last	594
purchased exclusive of the face value of county cigarette taxes	595
paid on the cigarettes, whichever is lower, less all trade	596
discounts except customary discounts for cash.	597

(C) "Cost to the wholesaler" means the invoice cost of the	598
cigarettes to the wholesaler, or the replacement cost of the	599
cigarettes to the wholesaler within thirty days prior to the date	600
of sale, in the quantity last purchased, whichever is lower, less	601
all trade discounts except customary discounts for cash, to which	602
shall be added a wholesaler's markup to cover in part the cost of	603
doing business, which wholesaler's markup, in the absence of proof	604
of a lesser or higher cost of doing business by the wholesaler as	605
evidenced by the standards and methods of accounting regularly	606
employed by the wholesaler in the wholesaler's allocation of	607
overhead costs and expenses, paid or incurred, including without	608
limitation, labor, salaries of executives and officers, rent,	609
depreciation, selling costs, maintenance of equipment, delivery,	610
delivery costs, all types of licenses, taxes, insurance, and	611
advertising, shall be twothree and five-tenths per cent of said	612
such invoice cost of the cigarettes to the wholesaler, to which	613
shall be added the full face value of state and county cigarette	614
tax stamps affixed by the wholesaler to each package of	615
cigarettes, or of the replacement cost of the cigarettes to the	616
wholesaler within thirty days prior to the date of sale in the	617
quantity last purchased, whichever is lower, less all trade	618
discounts except customary discounts for cash. Where the sale by	619
the wholesaler to the retailer is on a cash and carry basis, the	620
wholesaler may, in the absence of proof of a lesser or higher	621
cost, allow to the retailer an amount not to exceed three-fourths	622
of one per cent of the "cost to the wholesaler" excluding the	623
amount added thereto for the face value of state and county	624
cigarette tax stamps affixed to each package of cigarettes.	625

(D) Any person licensed to sell cigarettes as both a	626
wholesaler and a retailer, who does sell cigarettes at retail,	627
shall, in determining "cost to the retailer", first compute "cost	628
to the wholesaler" as provided in division (C) of this section;	629
saidthat "cost to the wholesaler" shall then be used in lieu of	630
the lower of either invoice cost or replacement cost less all	631
trade discounts except customary discounts for cash in computing	632
"cost to the retailer" as provided in divisions (A) and (B) of	633
this section.	634

(E) In all advertisements, offers for sale, or sales	635
involving two or more items at a combined price and in all	636
advertisements, offers for sale, or sales involving the giving of	637
any concession of any kind, whether it be coupons or otherwise,	638
the retailer's or wholesaler's selling price shall not be below	639
the "cost to the retailer" or the "cost to wholesaler",	640
respectively, of all articles, products, commodities, and	641
concessions included in such transactions.	642

(F)(1) "Sell at retail," "sales at retail," and "retail	643
sales" include any transfer of title to tangible personal property	644
for a valuable consideration made, in the ordinary course of trade	645
or usual prosecution of the seller's business, to the purchaser	646
for consumption or use.	647

(2) "Sell at wholesale," "sales at wholesale," and	648
"wholesale sales" include any such transfer of title to tangible	649
personal property for the purpose of resale.	650

(G) "Retailer" includes any person who is permitted to sell	651
cigarettes at retail within this state under section 5743.15 of	652
the Revised Code.	653

(H) "Wholesaler" includes any person who is permitted to	654
sell cigarettes at wholesale within this state under saidthat	655
section.	656

(I) "Person" includes individuals, corporations,	657
partnerships, associations, joint-stock companies, business	658
trusts, unincorporated organizations, receivers, or trustees.	659

(J) "County cigarette taxes" means the taxes levied under	660
section 5743.024 or 5743.026 of the Revised Code.	661

Sec. 2927.02.  (A) As used in this section and section	662
2927.021 of the Revised Code:	663

(1) "Child" has the same meaning as in section 2151.011 of	664
the Revised Code.	665

(2) "Cigarette" includes clove cigarettes and hand-rolled	666
cigarettes.	667

(3) "Distribute" means to furnish, give, or provide	668
cigarettes, other tobacco products, or papers used to roll	669
cigarettes to the ultimate consumer of the cigarettes, other	670
tobacco products, or papers used to roll cigarettes.	671

(4) "Proof of age" means a driver's license, a commercial	672
driver's license, a military identification card, a passport, or	673
an identification card issued under sections 4507.50 to 4507.52 of	674
the Revised Code that shows that a person is eighteen years of age	675
or older.	676

(5) "Tobacco product" means any product that is made from	677
tobacco, including, but not limited to, a cigarette, a cigar, pipe	678
tobacco, chewing tobacco, or snuff.	679

(6) "Vending machine" has the same meaning as "coin machine"	680
in section 2913.01 of the Revised Code.	681

(B) No manufacturer, producer, distributor, wholesaler, or	682
retailer of cigarettes, other tobacco products, or papers used to	683
roll cigarettes, no agent, employee, or representative of a	684
manufacturer, producer, distributor, wholesaler, or retailer of	685
cigarettes, other tobacco products, or papers used to roll	686
cigarettes, and no other person shall do any of the following:	687

(1) Give, sell, or otherwise distribute cigarettes, other	688
tobacco products, or papers used to roll cigarettes to any child;	689

(2) Give away, sell, or distribute cigarettes, other tobacco	690
products, or papers used to roll cigarettes in any place that does	691
not have posted in a conspicuous place a sign stating that giving,	692
selling, or otherwise distributing cigarettes, other tobacco	693
products, or papers used to roll cigarettes to a person under	694
eighteen years of age is prohibited by law;	695

(3) Knowingly furnish any false information regarding the	696
name, age, or other identification of any child with purpose to	697
obtain cigarettes, other tobacco products, or papers used to roll	698
cigarettes for that child;	699

(4) Manufacture, sell, or distribute in this state any pack	700
or other container of cigarettes containing fewer than twenty	701
cigarettes or any package of roll-your-own tobacco containing less	702
than six-tenths of one ounce of tobacco;	703

(5) Sell cigarettes in a smaller quantity than that placed	704
in the pack or other container by the manufacturer.	705

(C) No person shall sell or offer to sell cigarettes or	706
other tobacco products by or from a vending machine, except in the	707
following locations:	708

(1) An area within a factory, business, office, or other	709
place not open to the general public;	710

(2) An area to which children are not generally permitted	711
access;	712

(3) Any other place not identified in division (C)(1) or (2)	713
of this section, upon all of the following conditions:	714

(a) The vending machine is located within the immediate	715
vicinity, plain view, and control of the person who owns or	716
operates the place, or an employee of that person, so that all	717
cigarettes and other tobacco product purchases from the vending	718
machine will be readily observed by the person who owns or	719
operates the place or an employee of that person. For the	720
purpose of this section, a vending machine located in any	721
unmonitored area, including an unmonitored coatroom, restroom,	722
hallway, or outer waiting area, shall not be considered located	723
within the immediate vicinity, plain view, and control of the	724
person who owns or operates the place, or an employee of that	725
person.	726

(b) The vending machine is inaccessible to the public when	727
the place is closed.	728

(D) The following are affirmative defenses to a charge under	730
division (B)(1) of this section:	731

(1) The child was accompanied by a parent, spouse who is	732
eighteen years of age or older, or legal guardian of the child.	733

(2) The person who gave, sold, or distributed cigarettes,	734
other tobacco products, or papers used to roll cigarettes to a	735
child under division (B)(1) of this section is a parent, spouse	736
who is eighteen years of age or older, or legal guardian of the	737
child.	738

(E) It is not a violation of division (B)(1) or (2) of this	739
section for a person to give or otherwise distribute to a child	740
cigarettes, other tobacco products, or papers used to roll	741
cigarettes while the child is participating in a research protocol	742
if all of the following apply:	743

(1) The parent, guardian, or legal custodian of the child has	744
consented in writing to the child participating in the research	745
protocol.	746

(2) An institutional human subjects protection review board,	747
or an equivalent entity, has approved the research protocol.	748

(3) The child is participating in the research protocol at	749
the facility or location specified in the research protocol.	750

(F)(1) Whoever violates division (B)(1) or, (2), (4), or (5)	751
or (C) of this section is guilty of illegal distribution of	752
cigarettes or other tobacco products, a misdemeanor of the fourth	753
degree. If the offender previously has been convicted of a	754
violation of division (B)(1) or, (2), (4), or (5) or (C) of this	755
section, illegal distribution of cigarettes or other tobacco	756
products is a misdemeanor of the third degree.	757

(2) Whoever violates division (B)(3) of this section is	758
guilty of permitting children to use cigarettes or other tobacco	759
products, a misdemeanor of the fourth degree. If the offender	760
previously has been convicted of a violation of division (B)(3) of	761
this section, permitting children to use cigarettes or other	762
tobacco products is a misdemeanor of the third degree.	763

(G) Any cigarettes, other tobacco products, or papers used	764
to roll cigarettes that are given, sold, or otherwise distributed	765
to a child in violation of this section and that are used,	766
possessed, purchased, or received by a child in violation of	767
section 2151.87 of the Revised Code are subject to seizure and	768
forfeiture as contraband under sections 2933.42 and 2933.43 of the	769
Revised Code.	770

Sec. 5743.03. (A) Except as provided in section 5743.04 of	771
the Revised Code, the taxes imposed under sections 5743.02,	772
5743.023, 5743.024, and 5743.026 of the Revised Code shall be paid	773
by the purchase of stamps. A stamp shall be affixed to each	774
package of an aggregate denomination not less than the amount of	775
the tax upon the contents thereof. The stamp, so affixed, shall	776
be prima-facie evidence of payment of the tax. Except as is	777
provided in the rules prescribed by the tax commissioner under	778
authority of sections 5743.01 to 5743.20 of the Revised Code, and	779
unless such stamps have been previously affixed, they shall be so	780
affixed by each wholesale dealer, and canceled by writing or	781
stamping across the face thereof the number assigned to such	782
wholesale dealer by the tax commissioner for that purpose, prior	783
to the delivery of any cigarettes to any person in this state, or	784
in the case of a tax levied pursuant to section 5743.024 or	785
5743.026 of the Revised Code, prior to the delivery of cigarettes	786
to any person in the county in which the tax is levied.	787

(B) Except as provided in the rules prescribed by the	788
commissioner under authority of sections 5743.01 to 5743.20 of the	789
Revised Code, and unless such stamps have been previously affixed,	790
each retail dealer shall within twenty-four hours after the	791
receipt of any cigarettes at the retail dealer's place of business	792
and prior to the delivery thereof to any person in this state, or	793
in the case of a tax levied pursuant to section 5743.024 or	794
5743.026 of the Revised Code prior to the delivery thereof to any	795
person in the county in which the tax is levied, so affix such	796
stamps and cancel same by writing or stamping across the face	797
thereof the number assigned to such retail dealer by the	798
commissioner for that purpose.	799

(C) Whenever any cigarettes are found in the place of	800
business of any retail dealer without proper tax stamps affixed	801
thereto and canceled, it is presumed that such cigarettes are kept	802
therein in violation of sections 5743.01 to 5743.20 of the Revised	803
Code.	804

(D) Each wholesale dealer and each retail dealer who	805
purchases cigarettes without proper tax stamps affixed thereto	806
shall, on or before the thirty-first day of the month following	807
the close of each semiannual period, which period shall end on the	808
thirtieth day of June and the thirty-first day of December of each	809
year, make and file a return of the preceding semiannual period,	810
on such form as is prescribed by the tax commissioner, showing the	811
dealer's entire purchases and sales of cigarettes and stamps or	812
impressions for such semiannual period and accurate inventories as	813
of the beginning and end of each semiannual period of cigarettes,	814
stamped or unstamped; cigarette tax stamps affixed or unaffixed	815
and unused meter impressions; and such other information as the	816
commissioner finds necessary to the proper administration of	817
sections 5743.01 to 5743.20 of the Revised Code. The commissioner	818
may extend the time for making and filing returns and may remit	819
all or any part of amounts of penalties whichthat may become due	820
under sections 5743.01 to 5743.20 of the Revised Code. The	821
wholesale or retail dealer shall deliver the return together with	822
a remittance of the tax deficiency reported thereon to the	823
treasurer of state. The treasurer of state shall stamp or	824
otherwise mark on the return the date it was received and shall	825
also show thereon by stamp or otherwise a payment or nonpayment of	826
the deficiency shown by the return. Thereafter, the treasurer of	827
state shall immediately transmit all returns filed under this	828
section to the commissioner. Any	829

(E) Any wholesale or retail dealer who fails to file a return	830
under this section and the rules of the commissioner, other than a	831
report required pursuant to division (F) of this section, may be	832
required, for each day the dealer so fails, to forfeit and pay	833
into the state treasury the sum of one dollar as revenue arising	834
from the tax imposed by sections 5743.01 to 5743.20 of the Revised	835
Code and such sum may be collected by assessment in the manner	836
provided in section 5743.081 of the Revised Code. If the	837
commissioner finds it necessary in order to insure the payment of	838
the tax imposed by sections 5743.01 to 5743.20 of the Revised	839
Code, the commissioner may require returns and payments to be made	840
other than semiannually. The returns shall be signed by the	841
wholesale or retail dealer or an authorized agent thereof.	842

(F) Each person required to file a tax return under section	843
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to	844
the commissioner the quantity of all cigarettes and roll-your-own	845
cigarette tobacco sold in Ohio for each brand not covered by the	846
tobacco master settlement agreement for which the person is liable	847
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of	848
the Revised Code.	849

As used in this division, "tobacco master settlement	850
agreement" has the same meaning as in section 183.01 of the	851
Revised Code.	852

(G) The report required by division (F) of this section	853
shall be made on a form prescribed by the commissioner and shall	854
be filed not later than the last day of each month for the	855
previous month, except that if the commissioner determines that	856
the quantity reported by a person does not warrant monthly	857
reporting, the commissioner may authorize reporting at less	858
frequent intervals. The commissioner may assess a penalty of not	859
more than two hundred fifty dollars for each month or portion	860
thereof that a person fails to timely file a required report, and	861
such sum may be collected by assessment in the manner provided in	862
section 5743.081 of the Revised Code. All money collected under	863
this division shall be considered as revenue arising from the	864
taxes imposed by sections 5743.01 to 5743.20 of the Revised Code.	865

Sec. 5743.99.  (A) Whoever violates section 5743.10,	866
5743.11, or 5743.12 or division (C) of section 5743.54 of the	867
Revised Code is guilty of a misdemeanor of the first degree. If	868
the offender has been previously convicted of an offense under	869
this division, violation is a felony of the fourth degree.	870

(B) Whoever violates section 5743.111, 5743.112, 5743.13,	871
5743.14, 5743.59, or 5743.60 of the Revised Code is guilty of a	872
felony of the fourth degree. If the offender has been previously	873
convicted of an offense under this division, violation is a felony	874
of the second degree.	875

(C) Whoever violates section 5743.41 or 5743.42 of the	876
Revised Code is guilty of a misdemeanor of the fourth degree. If	877
the offender has been previously convicted of an offense under	878
this division, violation is a misdemeanor of the third degree.	879

(D) Whoever violates section 5743.21 of the Revised Code is	880
guilty of a misdemeanor of the first degree. If the offender has	881
been previously convicted of an offense under this division,	882
violation is a felony of the fifth degree.	883

(E) Whoever violates division (F) of section 5743.03 of the	884
Revised Code is guilty of a misdemeanor of the fourth degree.	885

(F) Whoever violates any provision of this chapter, or any	886
rule promulgated by the tax commissioner under authority of this	887
chapter, for the violation of which no penalty is provided	888
elsewhere, is guilty of a misdemeanor of the fourth degree.	889

(F)(G) In addition to any other penalty imposed upon a	890
person convicted of a violation of section 5743.112 or 5743.60 of	891
the Revised Code who was the operator of a motor vehicle used in	892
the violation, the registrar of motor vehicles shall suspend any	893
driver's or commercial driver's license issued to the offender	894
pursuant to the order and determination of the trial judge of any	895
court of record as provided in section 4507.16 of the Revised	896
Code.	897

Section 2. That existing sections 126.02, 183.02, 183.04,	898
183.06, 183.12, 183.14, 183.20, 183.30, 1333.11, 2927.02, 5743.03,	899
and 5743.99 and section 183.31 of the Revised Code are hereby	900
repealed.	901

Section 3.  All items in Sections 4 to 13 of this act are	902
hereby appropriated as designated out of any moneys in the state	903
treasury to the credit of the designated fund that are not	904
otherwise appropriated. For all appropriations made in this	905
section, those in the first column are for fiscal year 2003 and	906
those in the second column are for fiscal year 2004.	907

Section 4. ADA DEPARTMENT OF ALCOHOL AND DRUG ADDICTION	908
SERVICES	909

Section 5. AGO ATTORNEY GENERAL

916

Tobacco Master Settlement Agreement Fund Group

917

LAW ENFORCEMENT IMPROVEMENTS TRUST FUND

922

The foregoing appropriation item 055-635, Law Enforcement	923
Technology, Training, and Facility Enhancements shall be used in	924
accordance with section 183.10 of the Revised Code.	925
Notwithstanding anything to the contrary contained in sections	926
9.33 to 9.332 and Chapters 123. and 153. of the Revised Code, the	927
Office of the Attorney General may negotiate, enter into, and	928
administer a contract that combines both the design and	929
construction elements into one contract for the Ohio Peace Officer	930
Training Academy Outdoor Training Facility and Improvements	931
project, which is funded from appropriation item 055-635, Law	932
Enforcement Technology, Training, and Facility Enhancements.	933

Section 6. DOH DEPARTMENT OF HEALTH

934

Tobacco Master Settlement Agreement Fund Group

935

Section 7. MIH COMMISSION ON MINORITY HEALTH

949

Section 8. DHS DEPARTMENT OF PUBLIC SAFETY

956

Section 9. BOR BOARD OF REGENTS

962

Tobacco Master Settlement Agreement Fund Group

963

Section 10. NET SCHOOLNET COMMISSION

970

Tobacco Master Settlement Agreement Fund Group

971

EDUCATION TECHNOLOGY TRUST FUND

977

The foregoing appropriation item 228-602, Education	978
Technology Trust Fund, shall be used by the SchoolNet Commission	979
for grants to school districts and other entities and for the	980
costs of administering these grants. Of the total amount for	981
grants, $1,917,293 in fiscal year 2003 shall be used for the Ohio	982
ONEnet project, $909,247 in fiscal year 2003 shall be used for the	983
INFOhio Network, $298,750 in fiscal year 2003 shall be used for	984
the JASON Project, $1,000,000 in fiscal year 2003 shall be used	985
for RISE Learning Solutions, and $200,000 in fiscal year 2003	986
shall be used for the Stark County School Teacher Technical	987
Training Center. The remaining amount for grants shall be made to	988
school districts.	989

The JASON Project shall provide funding for statewide access	990
and a seventy-five per cent subsidy for statewide licensing of	991
JASON content for 90,000 middle school students statewide, and	992
professional development for teachers participating in the JASON	993
Project.	994

It is the intent of the General Assembly that the SchoolNet	995
Commission, in conjunction with RISE Learning Solutions, shall	996
develop a program that may be conducted in conjunction with	997
state-supported technology programs, including, but not limited	998
to, SchoolNet Commission appropriation item 228-406, Technical and	999
Instructional Professional Development, and appropriation item	1000
228-539, Education Technology, and that shall be designed to	1001
educate preschool staff members and providers on developmentally	1002
appropriate teaching methods, behavior guidance, and literacy and	1003
to involve parents more closely in the education and development	1004
of their children. The program shall include an interactive	1005
instructional component, delivered using satellite television,	1006
Internet, and with facilitation, and shall be distributed to	1007
program participants using the established satellite receiver	1008
dishes on public schools, Head Start centers, and childcare	1009
centers at up to 100 locations throughout the state. The	1010
interactive instructional component of the program shall be	1011
developed to enhance the professional development, training, and	1012
performance of preschool staff members, the education and	1013
care-giving skills of the parents of preschool children, and the	1014
preparation of preschool-age children for learning.	1015

The program shall utilize the grant to continue a	1016
direct-service component that shall include at least three	1017
teleconferences that may be distributed by Ohio-based public	1018
television utilizing satellite or microwave technology in a manner	1019
designed to promote interactive communications between the program	1020
participants located at subsites within the Ohio Educational	1021
Broadcast Network or as determined by the commission. Program	1022
participants shall communicate with trainers and participants at	1023
other program sites through telecommunications and facsimile and	1024
on-line computer technology. As much as possible, the	1025
direct-service component shall utilize systems currently available	1026
in state-supported technology programs and conduct the component	1027
in a manner that promotes innovative, interactive communications	1028
between program participants at all the sites. Parent support	1029
groups and teacher training sessions shall supplement the	1030
teleconferences and shall occur on a local basis.	1031

RISE Learning Solutions may subcontract components of the	1032
program.	1033

Individuals eligible to participate in the program include	1034
those children, their parents, custodians, or guardians, and	1035
preschool staff members who are eligible to participate in a	1036
preschool program as defined in division (A) of section 3301.52	1037
and section 5104.02 of the Revised Code.	1038

The components of the program, including two that shall be	1039
developed in support of teacher proficiency in teaching reading to	1040
prekindergarten and kindergarten to third grade students, at the	1041
direction of the Department of Education, may include: two	1042
three-hour broadcast seminars from a central up-link station,	1043
distributed in up to 88 counties; high production-value video	1044
sought in various locations; and direct interactive adult learning	1045
activities. These two components shall include development of	1046
workbooks and involve at least three small, group-facilitated	1047
follow-up discussion workshops and development and distribution of	1048
at least two home videos. The program shall also provide Internet	1049
access, interactive lines, bulletin board, and CD-ROM.	1050

Upon completion of each of the school years for which the	1051
grant was made, RISE Learning Solutions shall issue a report to	1052
the commission and members of the General Assembly explaining the	1053
goals and objectives determined, the activities implemented, the	1054
progress made toward the achievement of the goals and objectives,	1055
and the outcome of the program.	1056

The commission shall use the remaining appropriation	1057
authority in fiscal year 2003 and appropriation authority granted	1058
in fiscal year 2004 to establish and equip, through the SchoolNet	1059
Plus Program, at least one interactive computer station for each	1060
five children enrolled in the sixth grade as determined by a	1061
three-year average adjusted per pupil property valuation pursuant	1062
to division (A) of section 3317.03 of the Revised Code. Districts	1063
in the first two quartiles of wealth shall receive $380 per pupil	1064
for students in grade six to purchase classroom computers for the	1065
sixth grade. Districts in the third and fourth quartile shall	1066
receive approximately $188 per sixth grade pupil. If a district	1067
has met the state's goal of one computer to every five students,	1068
the district may use funds provided through the SchoolNet Plus	1069
Program to purchase computers for grade seven or to fulfill	1070
educational technology needs on other grades as specified in the	1071
district's technology plan. When there is at least one computer	1072
for each five children enrolled in the sixth grade, SchoolNet	1073
shall use any remaining funds appropriated to establish and equip	1074
at least one interactive computer workstation for each five	1075
children enrolled in the seventh grade as determined by the	1076
previously defined formula.	1077

Section 11. SOA SOUTHERN OHIO AGRICULTURAL AND COMMUNITY	1078
DEVELOPMENT FOUNDATION	1079

Tobacco Master Settlement Agreement Fund Group

1080

INVESTMENT EARNINGS ON OPERATING EXPENSES FUND

1087

On July 1, 2002, or as soon thereafter as possible, the	1088
Director of Budget and Management shall transfer the investment	1089
earnings that would have been credited to the Southern Ohio	1090
Agricultural and Community Development Operating Expenses Fund	1091
(Fund 5M9) established in section 183.14 of the Revised Code for	1092
fiscal years 2001 and 2002, which were credited to the General	1093
Revenue Fund, from the General Revenue Fund to the Southern Ohio	1094
Agricultural and Community Development Operating Expenses Fund	1095
(Fund 5M9).	1096

Section 11.01.

1097

INDEMNIFICATION PAYMENTS

1098

(A) Notwithstanding sections 183.11 to 183.17 of the Revised	1099
Code, indemnification payments shall be made from the Southern	1100
Ohio Agricultural and Community Development Foundation Endowment	1101
Fund as required by this section. The total amount of payments	1102
made under this section in fiscal years 2003 and 2004 shall be	1103
limited to the amount of revenue the Southern Ohio Agricultural	1104
and Community Development Foundation Endowment Fund receives from	1105
the Southern Ohio Agricultural and Community Development Trust	1106
Fund (Fund K87) in each fiscal year, respectively, less	1107
administrative costs associated with making the indemnification	1108
payments. The Southern Ohio Agricultural and Community Development	1109
Foundation shall do all of the following:	1110

(1) Identify quota owners, growers, producers, and tenant	1111
farmers engaged in the production of burley tobacco who are	1112
eligible for indemnification for losses under this section;	1113

(2) Determine the method and formula to calculate the	1114
indemnification due to each eligible candidate;	1115

(3) Calculate the indemnification due to each eligible	1116
candidate;	1117

(4) Make an indemnification payment for production losses to	1118
each eligible candidate.	1119

(B) Indemnification payments shall be limited to candidates	1120
in the part of the state where burley tobacco has traditionally	1121
been grown.	1122

Section 12. TAX DEPARTMENT OF TAXATION

1123

Section 13. TUP TOBACCO USE PREVENTION AND CONTROL	1129
FOUNDATION	1130

INVESTMENT EARNINGS ON OPERATING EXPENSES FUND

1135

On July 1, 2002, or as soon thereafter as possible, the	1136
Director of Budget and Management shall transfer the investment	1137
earnings that would have been credited to the Tobacco Use	1138
Prevention and Control Operating Expenses Fund (Fund 5M8)	1139
established in section 183.06 of the Revised Code for fiscal years	1140
2001 and 2002, which were instead credited to the General Revenue	1141
Fund, from the General Revenue Fund to the Tobacco Use Prevention	1142
and Control Operating Expenses Fund (Fund 5M8).	1143

Section 13.01. During fiscal years 2003 and 2004, of the	1144
total amount of funding the Tobacco Use Prevention and Control	1145
Foundation provides during the year to other organizations for	1146
tobacco use prevention and cessation programs, the Foundation	1147
shall devote a percentage to programs for smokeless tobacco use	1148
prevention and cessation. The Foundation's Board of Trustees	1149
shall specify the percentage for a fiscal year before the year	1150
begins.	1151

Section 13.02. If, during fiscal year 2003 or fiscal year	1152
2004, the Tobacco Use Prevention and Control Foundation spends	1153
money on a tobacco counter-marketing media campaign, the	1154
Foundation shall devote a percentage of the money so spent to a	1155
media campaign to reduce the use of smokeless tobacco. The	1156
Foundation's Board of Trustees shall specify the percentage for a	1157
fiscal year before the year begins.	1158

Section 14.  All items set forth in this section are hereby	1159
appropriated out of any moneys in the state treasury to the credit	1160
of the Education Facilities Trust Fund (Fund N87) that are not	1161
otherwise appropriated.	1162

Appropriations

SFC SCHOOL FACILITIES COMMISSION

1163

Section 14.01.  Section 14 of this act shall remain in full	1168
force and effect commencing on July 1, 2002, and terminating on	1169
June 30, 2004, for the purpose of drawing money from the state	1170
treasury in payment of liabilities lawfully incurred thereunder,	1171
and on June 30, 2004, and not before, the moneys appropriated	1172
thereby shall lapse into the funds from which they are severally	1173
appropriated.	1174

The appropriations made in Section 14 of this act are	1175
subject to all provisions of the capital appropriations act	1176
governing the 2002-2004 biennium that are generally applicable to	1177
such appropriations. Expenditures from appropriations contained	1178
in Section 14 shall be accounted for as though made in the	1179
capital appropriations act governing the 2002-2004 biennium.	1180

By September 30, 2002, the Director of the School Facilities	1181
Commission shall cancel $180,000,000 in outstanding encumbrances	1182
against appropriation items CAP-780, Classroom Facilities	1183
Assistance Program, in Fund N87 and CAP-784, Exceptional Needs	1184
Program, in Fund N87 and reestablish them in appropriation item	1185
CAP-770, School Building Program Assistance, in Fund 032 and	1186
CAP-779, Exceptional Needs, in Fund 032.	1187

Section 15. TRANSFER FROM TOBACCO MASTER SETTLEMENT AGREEMENT	1188
FUND TO CONTROLLING BOARD EMERGENCY PURPOSES FUND	1189

Notwithstanding section 183.02 of the Revised Code, on July	1190
1, 2002, or as soon thereafter as possible, the Director of Budget	1191
and Management shall transfer $368,301 in cash from the net amount	1192
credited to the Tobacco Master Settlement Agreement Fund (Fund	1193
087) to the Controlling Board Emergency Purposes Fund (Fund 5S4).	1194
The amount transferred is hereby appropriated.	1195

The transfer made under this section shall be made after the	1196
transfers made under divisions (F) and (G) of section 183.02 of	1197
the Revised Code, but prior to the transfers made under divisions	1198
(A) to (E) and (I) and (J) of section 183.02 of the Revised Code.	1199
The amount transferred shall reimburse the Controlling Board	1200
Emergency Purposes Fund (Fund 5S4) for the amounts transferred to	1201
the Attorney General and the Department of Taxation to pay for the	1202
expenses associated with the enforcement of the tobacco master	1203
settlement agreement in fiscal year 2002.	1204

Section 16. That Section 32 of Am. Sub. H.B. 405 of the 124th	1205
General Assembly be amended to read as follows:	1206

"       Sec. 32. TRANSFER FROM THE TOBACCO MASTER SETTLEMENT	1207
AGREEMENT FUND TO THE GENERAL REVENUE FUND	1208

(A) Notwithstanding section 183.02 of the Revised Code, on	1209
or before June 30, 2002, the Director of Budget and Management may	1210
transfer up to $120,000,000 from the Tobacco Master Settlement	1211
Agreement Fund (Fund 087) to the General Revenue Fund.	1212

Notwithstanding section 183.02 of the Revised Code, on or	1213
before June 30, 2003, the Director of Budget and Management may	1214
transfer up to $120,000,000 from the Tobacco Master Settlement	1215
Agreement Fund (Fund 087) to the General Revenue Fund.	1216

Of the tobacco revenue that is credited to the Tobacco Master	1217
Settlement Agreement Fund in fiscal year 2002 and in fiscal year	1218
2003, the share that is determined pursuant to section 183.02 of	1219
the Revised Code to be the amount to be transferred by the	1220
Director of Budget and Management from the Tobacco Master	1221
Settlement Agreement Fund to the Tobacco Use Prevention and	1222
Cessation Trust Fund shall be reduced by the amount that is	1223
transferred from the Tobacco Master Settlement Agreement Fund to	1224
the General Revenue Fund in accordance with this division.	1225

(B) Notwithstanding section 183.02 of the Revised Code, on	1226
or before June 30, 2003, the Director of Budget and Management may	1227
make one or more transfersand in addition to any amounts that	1228
have been authorized for transfer from the Tobacco Master	1229
Settlement Agreement Fund (Fund 087) to the General Revenue Fund	1230
that in total do not exceed $20,000,000. Fromin fiscal years	1231
2002 and 2003, there is hereby appropriated in fiscal years 2002	1232
and 2003 an amount to be determined by the Director of Budget and	1233
Management from the Tobacco Master Settlement Agreement Fund (Fund	1234
087) to appropriation item 001-602, GRF Revenue Supplement, for	1235
the purpose of overcoming the current shortfall of revenues to the	1236
General Revenue Fund. The sum of the appropriations for fiscal	1237
years 2002 and 2003 pursuant to this division shall not exceed	1238
$3,900,000. The Director shall make disbursements, using an	1239
intrastate transfer voucher, from the foregoing appropriation to	1240
the General Revenue Fund.	1241

Of the tobacco revenue that is credited to the Tobacco Master	1242
Settlement Agreement Fund in fiscal years 2002 and 2003, the	1243
sharesshare that areis determined pursuant to section 183.02 of	1244
the Revised Code to be the amountsamount to be transferred by the	1245
Director of Budget and Management from the Tobacco Master	1246
Settlement Agreement Fund to the various trust fundsOhio's Public	1247
Health Priorities Trust Fund (Fund L87) shall be reduced in each	1248
fiscal year to provide the revenue for the transfers under this	1249
division in a manner to be determined in the tobacco revenue	1250
budget act for fiscal years 2003 and 2004, but such manner shall	1251
not provide for any reductions in the shares determined for the	1252
Education Facilities Trust Fund (Fund N87), Education Facilities	1253
Endowment Fund (Fund P87), Education Technology Trust Fund (Fund	1254
S87), and Biomedical Research and Technology Transfer Trust Fund	1255
(Fund M87). The Director of Budget and Management shall not make	1256
any transfers pursuant to this division until it is determined how	1257
the shares are to be reducedby the amount that is appropriated	1258
from the Tobacco Master Settlement Agreement Fund to appropriation	1259
item 001-602, GRF Revenue Supplement, in accordance with this	1260
division.	1261

(C) The Director of Budget and Management shall compare the	1262
amount of revenue that is credited to the Tobacco Master	1263
Settlement Agreement Fund (Fund 087) in fiscal year 2002 in excess	1264
of $364,000,000 but not in excess of $418,783,038.09 to the amount	1265
the state receives in fiscal year 2002 from an escrow account that	1266
has been established by a tobacco company that is participating in	1267
the master settlement agreement while that company is disputing a	1268
portion of its calculated payment. Of the amounts compared, the	1269
Director of Budget and Management shall distribute, in accordance	1270
with division (D) of this section, whichever amount is greater. If	1271
the compared amounts are equal, the Director of Budget and	1272
Management shall distribute an amount equal to one of the amounts	1273
compared.	1274

(D)(1) Notwithstanding section 183.02 of the Revised Code, on	1275
July 1, 2002, or as soon thereafter as possible, the Director of	1276
Budget and Management shall do the following:	1277

(a) Transfer the first $3,900,000 of the amount determined to	1278
be greater under division (C) of this section to the Ohio's Public	1279
Health Priorities Trust Fund (Fund L87);	1280

(b) Transfer any amount in excess of $3,900,000 that	1281
is to be distributed pursuant to division (C) of this section to	1282
the Southern Ohio Agricultural and Community Development Trust	1283
Fund (Fund K87).	1284

(2) Any funds transferred to the Ohio's Public Health	1285
Priorities Trust Fund pursuant to division (D)(1)(a) of this	1286
section are hereby appropriated in accordance with division (H) of	1287
this section. Any funds transferred to the Southern Ohio	1288
Agricultural and Community Development Trust Fund pursuant to	1289
division (D)(1)(b) of this section are hereby appropriated to	1290
appropriation item 945-602, Southern Ohio Agricultural and	1291
Community Development Foundation.	1292

(E) The Director of Budget and Management shall compare the	1293
amount of revenue that is credited to the Tobacco Master	1294
Settlement Agreement Fund (Fund 087) in fiscal year 2003 in excess	1295
of $372,700,000 but not in excess of $422,746,368.61 to the amount	1296
the state receives in fiscal year 2003 from an escrow account that	1297
has been established by a tobacco company that is participating in	1298
the master settlement agreement while that company is disputing a	1299
portion of its calculated payment. Of the amounts compared, the	1300
Director of Budget and Management shall distribute, in accordance	1301
with division (F) of this section, whichever amount is greater. If	1302
the compared amounts are equal, the Director of Budget and	1303
Management shall distribute an amount equal to one of the amounts	1304
compared.	1305

(F)(1) Notwithstanding section 183.02 of the Revised Code,	1306
on July 1, 2003, or as soon thereafter as possible, the Director	1307
of Budget and Management shall do as follows:	1308

(a) If the Ohio's Public Health Priorities Trust Fund (Fund	1309
L87) received a transfer of $3,900,000 pursuant to division (D) of	1310
this section, transfer the amount determined to be greater under	1311
division (E) of this section to the Southern Ohio Agricultural and	1312
Community Development Trust Fund (Fund K87).	1313

(b) If the Ohio's Public Health Priorities Trust Fund	1314
received less than $3,900,000 under division (D) of this section,	1315
transfer to the Ohio's Public Health Priorities Trust Fund up to	1316
the difference between the amount transferred pursuant to division	1317
(D) of this section and $3,900,000.	1318

(c) Transfer any amount in excess of the amount needed to	1319
bring the total amount transferred to Ohio's Public Health	1320
Priorities Trust Fund up to $3,900,000 to the Southern Ohio	1321
Agricultural and Community Development Trust Fund (K87).	1322

(2) Any funds transferred to the Ohio's Public Health	1323
Priorities Trust Fund pursuant to division (F)(1)(b) of this	1324
section are hereby appropriated in accordance with division (H) of	1325
this section. Any funds transferred to the Southern Ohio	1326
Agricultural and Community Development Trust Fund pursuant to	1327
division (F)(1)(a) or (c) of this section are hereby appropriated	1328
to appropriation item 945-602, Southern Ohio Agricultural and	1329
Community Development Foundation.	1330

(G) The amounts transferred to the Ohio's Public Health	1331
Priorities Trust Fund (Fund L87) pursuant to divisions (D) and (F)	1332
of this section shall not exceed a total of $3.9 million.	1333

(H)(1) If any amounts are transferred from the Tobacco Master	1334
Settlement Agreement Fund (Fund 087) to the Ohio’s Public Health	1335
Priorities Trust Fund (Fund L87) pursuant to divisions (D) and (F)	1336
of this section, the amounts transferred shall be used to increase	1337
the appropriation authority in appropriation item 440-414,	1338
Uncompensated Care, by up to $225,000 per year in fiscal years	1339
2003 and 2004 and in appropriation item 440-411, Dental Care	1340
Programs for Minority and Low-Income Populations, by up to	1341
$120,000 per year in fiscal years 2003 and 2004. The increase to	1342
appropriation item 440-414, Uncompensated Care, shall be used to	1343
establish new dental clinics or expand existing dental clinics.	1344

(2) If any amounts are transferred to the Ohio’s Public	1345
Health Priorities Trust Fund, the Director of Health shall	1346
determine which appropriation item outlined in division (H)(1) of	1347
this section will have its appropriation authority increased. The	1348
Director of Health may elect to have the appropriation authority	1349
in both appropriation items increased.	1350

(I) Any payment credited to the Tobacco Master Settlement	1351
Agreement Fund (Fund 087) that exceeds $418,783,038.09 in fiscal	1352
year 2002 or exceeds $422,746,368.61 in fiscal year 2003 shall be	1353
transferred pursuant to division (L) of section 183.02 of the	1354
Revised Code."	1355

Section 17. That existing Section 32 of Am. Sub. H.B. 405 of	1356
the 124th General Assembly is hereby repealed.	1357

Section 18. INFORMATION ON PRESCRIPTION DRUG ASSISTANCE

1358

The Department of Aging shall develop a program that creates	1359
a toll-free phone number to provide information on prescription	1360
drug assistance that is available in Ohio. The Department of Aging	1361
shall seek private funding in addition to any state funds used for	1362
this program. The Department of Aging shall not disburse funds for	1363
the program until after the department submits a request to the	1364
Controlling Board outlining the planned use of the funds, and the	1365
Controlling Board approves the request.	1366

Section 19.  PERSONAL SERVICE EXPENSES

1367

Unless otherwise prohibited by law, each appropriation in	1368
this act from which personal service expenses are paid shall bear	1369
the employer's share of public employees' retirement, workers'	1370
compensation, disabled workers' relief, and all group insurance	1371
programs; the costs of centralized accounting, centralized payroll	1372
processing, and related personnel reports and services; the cost	1373
of the Office of Collective Bargaining; the cost of the Personnel	1374
Board of Review; the cost of the Employee Assistance Program; the	1375
cost of the Equal Opportunity Center; the costs of interagency	1376
information management infrastructure; and the cost of	1377
administering the state employee merit system as required by	1378
section 124.07 of the Revised Code. Such costs shall be	1379
determined in conformity with appropriate sections of law and paid	1380
in accordance with procedures specified by the Office of Budget	1381
and Management.	1382

Section 20. That Section 103.03 of Am. Sub. H.B. 94 of the	1383
124th General Assembly is hereby repealed.	1384

Section 21.  Except as otherwise specifically provided in	1385
this act, the codified and uncodified sections of law contained in	1386
this act, and the items of law of which the codified and	1387
uncodified sections of law contained in this act are composed, are	1388
subject to the referendum. Therefore, under Ohio Constitution,	1389
Article II, Section 1c and section 1.471 of the Revised Code, the	1390
codified and uncodified sections of law contained in this act, and	1391
the items of law of which the codified and uncodified sections of	1392
law contained in this act are composed, take effect on the	1393
ninety-first day after this act is filed with the Secretary of	1394
State. If, however, a referendum petition is filed against any	1395
such codified or uncodified section of law contained in this act,	1396
or against any item of law of which any such codified or	1397
uncodified section of law contained in this act is composed, the	1398
codified or uncodified section of law, or item of law, unless	1399
rejected at the referendum, takes effect at the earliest time	1400
permitted by law.	1401

Section 22. Sections 3 to 13 and 15 to 26 of this act are not	1402
subject to the referendum. Therefore, under Ohio Constitution,	1403
Article II, Section 1d and section 1.471 of the Revised Code,	1404
Sections 3 to 13 and 15 to 26 of this act go into immediate effect	1405
when this act becomes law.	1406

Section 23. Sections 183.02, 183.06, 183.14, 183.30, 183.34,	1407
and 183.35 of the Revised Code as amended or enacted by this act,	1408
and the items of law of which such sections as amended or enacted	1409
by this act are composed, are not subject to the referendum.	1410
Therefore, under Ohio Constitution, Article II, Section 1d and	1411
section 1.471 of the Revised Code, such sections as amended or	1412
enacted by this act, and the items of law of which such sections	1413
as amended or enacted by this act are composed, go into immediate	1414
effect when this act becomes law.	1415

Section 24. Section 1333.11 of the Revised Code, as amended	1416
by this act, and the items of law of which section 1333.11 of the	1417
Revised Code, as amended by this act, are composed, are not	1418
subject to the referendum. Therefore, under Ohio Constitution,	1419
Article II, Section 1d and section 1.471 of the Revised Code,	1420
section 1333.11 of the Revised Code, as amended by this act, and	1421
the items of law of which section 1333.11 of the Revised Code, as	1422
amended by this act, are composed, go into immediate effect when	1423
this act becomes law. However, section 1333.11 of the Revised	1424
Code, as amended by this act, shall take effect on July 1, 2002.	1425

Section 25.  The repeal by this act of section 183.31 of	1426
the Revised Code is not subject to the referendum. Therefore,	1427
under Ohio Constitution, Article II, Section 1d and section 1.71	1428
of the Revised Code, the repeal goes into immediate effect when	1429
this act becomes law.	1430

Section 26. The repeal of Section 103.03 of Am. Sub. H.B. 94	1431
of the 124th General Assembly is not subject to the referendum.	1432
Therefore, under Ohio Constitution, Article II, Section 1d and	1433
section 1.471 of the Revised Code, the repeal of Section 103.03 is	1434
entitled to go into immediate effect when this act becomes law.	1435
However, the repeal of Section 103.03 of Am. Sub. H.B. 94 of the	1436
124th General Assembly takes effect on July 1, 2002, or the day	1437
this act becomes law, whichever is later.	1438