SENATOR Carnes (By Request)

To amend sections 126.02, 183.02, 183.06, 183.12,

1

183.14, 183.30, 5743.03, and 5743.99, to enact

2

sections 183.34 and 183.35, and to repeal section

3

183.31 of the Revised Code; to amend Section 32 of

4

Am. Sub. H.B. 405 of the 124th General Assembly;

5

and to repeal Section 103.03 of Am. Sub. H.B. 94 of

6

the 124th General Assembly to modify the

7

administration of tobacco settlement funds and to

8

make operating and capital appropriations for the

9

biennium beginning July 1, 2002, and ending June

10

30, 2004.

11

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

Section 1. That sections 126.02, 183.02, 183.06, 183.12,	12
183.14, 183.30, 5743.03, and 5743.99 be amended and sections	13
183.34 and 183.35 of the Revised Code be enacted to read as	14
follows:	15

Sec. 126.02.  The director of budget and management shall	16
prepare and submit to the governor, biennially, not later than the	17
first day of January preceding the convening of the general	18
assembly, state budget estimates of revenues and expenditures for	19
each state fund and budget estimates for each state agency, except	20
such estimates as are required under section 126.22126.022 of the	21
Revised Code. The budget estimates for each state agency for	22
which direct appropriations are proposed shall include the	23
following details:	24

(A) Estimates of the operating budget;

25

(B) Estimates of the subsidy appropriations necessary,	26
delineated by a distinct subsidy program;	27

(C) Estimates for special purposes, delineated by a distinct	28
special purpose program;	29

(D) Estimates of appropriations necessary from each fund in	30
reasonable detail to allow for adequate planning and oversight of	31
programs and activities.	32

In the preparation of state revenue and expenditure	33
estimates, the director of budget and management shall, not later	34
than the fifteenth day of September in the year preceding the	35
first regular session of the general assembly, distribute to all	36
affected state agencies the forms necessary for the preparation of	37
budget requests, which shall be in the form prescribed by the	38
director in consultation with the legislative budget office of the	39
legislative service commission to procure information concerning	40
the revenues and expenditures for the preceding and current	41
bienniums, an estimate of the revenues and expenditures of the	42
current fiscal year, and an estimate of the revenues and proposed	43
expenditures for the respective agencies for the two succeeding	44
fiscal years for which appropriations have to be made. Each such	45
agency shall, not later than the first day of November, file with	46
the director its estimate of revenues and proposed expenditures	47
for the succeeding biennium.	48

Each such agency shall, not later than the first day of	49
December, file with the chairperson of the finance committees of	50
the senate and house of representatives and the legislative budget	51
officeservice commission a duplicate copy of such budget request.	52

The budget request shall be accompanied by a statement in	53
writing giving facts and explanation of reasons for the items	54
requested. The director and the legislative budget officeservice	55
commission may make further inquiry and investigation as to any	56
item desired. The director may approve, disapprove, or alter the	57
requests, excepting those for the legislative and judicial	58
branches of the state. The requests as revised by the director	59
constitute the state budget estimates of revenues and expenditures	60
which the director is required to submit to the governor.	61

Sec. 183.02.  This section's references to years mean state	62
fiscal years.	63

All payments received by the state pursuant to the tobacco	64
master settlement agreement shall be deposited into the state	65
treasury to the credit of the tobacco master settlement agreement	66
fund, which is hereby created. All investment earnings of the	67
fund shall also be credited to the fund. Except as provided in	68
division (I)(K) of this section, payments and interest credited to	69
the fund shall be transferred by the director of budget and	70
management as follows:	71

(A)(1) Of the first payment credited to the tobacco master	72
settlement agreement fund in 2000 and the net amounts credited to	73
the fund annually from 2000 to 2006 and in 2012, the following	74
amount or percentage shall be transferred to the tobacco use	75
prevention and cessation trust fund, created in section 183.03 of	76
the Revised Code:	77

(2) Of the net amounts credited to the tobacco master	88
settlement agreement fund in 2013, the director shall transfer to	89
the tobacco use prevention and cessation trust fund the amount not	90
transferred to the tobacco use prevention and cessation trust fund	91
from the net amounts credited to the tobacco master settlement	92
agreement fund in 2002 due to Am. Sub. H.B. No. 405 of the 124th	93
general assembly. Of the net amounts credited to the tobacco	94
master settlement agreement fund in 2014, the director shall	95
transfer to the tobacco use prevention and cessation trust fund	96
the amount not transferred to the tobacco use prevention and	97
cessation trust fund from the net amounts credited to the tobacco	98
master settlement agreement fund in 2003 due to Am. Sub. H.B. No.	99
405 of the 124th general assembly.	100

(B) Of the first payment credited to the tobacco master	101
settlement agreement fund in 2000 and the net amounts credited to	102
the fund annually in 2000 and 2001, the following amount or	103
percentage shall be transferred to the law enforcement	104
improvements trust fund, created in section 183.10 of the Revised	105
Code:	106

(C)(1) Of the first payment credited to the tobacco master	111
settlement agreement fund in 2000 and the net amounts credited to	112
the fund annually from 2000 to 2011, the following percentages	113
shall be transferred to the southern Ohio agricultural and	114
community development trust fund, created in section 183.11 of the	115
Revised Code:	116

(2) Of the net amounts credited to the tobacco master	128
settlement agreement fund in 2013, the director shall transfer to	129
the southern Ohio agricultural and community development trust	130
fund the amount not transferred to the southern Ohio agricultural	131
and community development trust fund from the net amounts credited	132
to the tobacco master settlement agreement fund in 2002 due to Am.	133
Sub. H.B. No. 405 of the 124th general assembly. Of the net	134
amounts credited to the tobacco master settlement agreement fund	135
in 2014, the director shall transfer to the southern Ohio	136
agricultural and community development trust fund the amount not	137
transferred to the southern Ohio agricultural and community	138
development trust fund from the net amounts credited to the	139
tobacco master settlement agreement fund in 2003 due to Am. Sub.	140
H.B. No. 405 of the 124th general assembly.	141

(D)(1) The following percentages of the net amounts credited	142
to the tobacco master settlement agreement fund annually shall be	143
transferred to Ohio's public health priorities trust fund, created	144
in section 183.18 of the Revised Code:	145

(2) Of the net amounts credited to the tobacco master	160
settlement agreement fund in 2013, the director shall transfer to	161
the OhioOhio's public health priorities trust fund the amount not	162
transferred to the OhioOhio's public health priorities trust fund	163
from the net amounts credited to the tobacco master settlement	164
agreement fund in 2002 due to Am. Sub. H.B. No. 405 of the 124th	165
general assembly. Of the net amounts credited to the tobacco	166
master settlement agreement fund in 2014, the director shall	167
transfer to the OhioOhio's public health priorities trust fund	168
the amount not transferred to the OhioOhio's public health	169
priorities trust fund from the net amounts credited to the tobacco	170
master settlement agreement fund in 2003 due to Am. Sub. H.B. No.	171
405 of the 124th general assembly.	172

(E) The following percentages of the net amounts credited to	173
the tobacco master settlement agreement fund annually shall be	174
transferred to the biomedical research and technology transfer	175
trust fund, created in section 183.19 of the Revised Code:	176

(F) Of the amounts credited to the tobacco master settlement	188
agreement fund annually, the following amounts shall be	189
transferred to the education facilities trust fund, created in	190
section 183.26 of the Revised Code:	191

(G) Of the amounts credited to the tobacco master settlement	203
agreement fund annually, from 2000 to 2012 five million dollars	204
per year shall be transferred to the education facilities	205
endowment fund, created in section 183.27 of the Revised Code.	206
From 2013 to 2025, the following percentages of the amounts	207
credited to the tobacco master settlement agreement fund annually	208
shall be transferred to the endowment fund:	209

(H) The following percentages of the net amounts credited to	214
the tobacco master settlement agreement fund annually shall be	215
transferred to the education technology trust fund, created in	216
section 183.28 of the Revised Code:	217

(I) In each year from 2003 to 2025, after the transfers made	232
under divisions (F) and (G) of this section but prior to the	233
transfers made under divisions (A) to (E) of this section, the	234
director of budget and management shall transfer to the tobacco	235
settlement oversight, administration, and enforcement fund created	236
in section 183.34 of the Revised Code such amount as the director	237
determines necessary to pay the costs incurred by the attorney	238
general in tobacco settlement oversight, administration, and	239
enforcement.	240

(J) In each year from 2003 to 2025, after the transfers	241
made 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 enforcement fund created in section 183.35 of the	245
Revised Code such amount as the director determines necessary to	246
pay the costs incurred by the tax commissioner in the enforcement	247
of divisions (F) and (G) of section 5743.03 of the Revised Code.	248

(K) If in any year from 2001 to 2012 the payments and	249
interest credited to the tobacco master settlement agreement fund	250
during the year amount to less than the amounts required to be	251
transferred to the education facilities trust fund and the	252
education facilities endowment fund that year, the director of	253
budget and management shall make none of the transfers required by	254
divisions (A) to (H)(J) of this section.	255

(J)(L) If in any year from 2000 to 2025 the payments	256
credited to the tobacco master settlement agreement fund during	257
the year exceed the following amounts, the director of budget and	258
management shall transfer the excess to the income tax reduction	259
fund, created in section 131.44 of the Revised Code:	260

Sec. 183.06.  The board of trustees of the tobacco use	272
prevention and control foundation shall appoint and set the	273
compensation of an executive director and other employees needed	274
to carry out the duties of the foundation. Before entering upon	275
the discharge of the duties of office, the executive director	276
shall give a bond to the state, to be approved by the governor,	277
conditioned for the faithful performance of the duties of office.	278
The executive director and the other employees of the foundation	279
are state employees and serve in the unclassified service.	280

There is hereby created in the state treasury the tobacco use	281
prevention and control operating expenses fund. The treasurer of	282
state shall periodically pay into the fund, from the tobacco use	283
prevention and control endowment fund created in section 183.08 of	284
the Revised Code, amounts requested by the foundation to pay the	285
compensation of state employees of the foundation. Amounts	286
credited to the operating expenses fund shall be used by the	287
foundation solely to pay the compensation of the state employees	288
of the foundation. All investment earnings of the operating	289
expenses fund shall be credited to the fund.	290

Sec. 183.12.  There is hereby created the southern Ohio	291
agricultural and community development foundation, the general	292
management of which is vested in a board of trustees of twelve	293
members as follows:	294

(A) The director of agriculture, director of development,	295
executive director of the Ohio rural development partnership, and	296
director or designee of the director of the Ohio state university	297
extension, who shall serve as ex officio officers;	298

(B) Two residents of major tobacco-producing counties with	299
experience in local agricultural economic development or community	300
development appointed by the governor;	301

(C) Three active farmers from major tobacco-producing	302
counties, who shall be appointed by the governor, two of whom	303
shall be appointed from a list of at least four individuals	304
recommended by the Ohio farm bureau and one of whom shall be	305
appointed from a list of at least two individuals recommended by	306
the farmers' union;	307

(D) Three active tobacco farmers from major	308
tobacco-producing counties, who shall be appointed by the governor	309
from a list of at least six individuals recommended by the Ohio	310
tobacco growers association.	311

The appointments of the governor shall be with the advice and	312
consent of the senate.	313

Terms of office for the members appointed by the governor	314
shall be for five years. Each such member shall hold office from	315
the date of appointment until the end of the term for which the	316
member was appointed. Any member appointed by the governor to	317
fill a vacancy occurring prior to the expiration of the term for	318
which the member's predecessor was appointed shall hold office for	319
the remainder of such term. Any member appointed by the governor	320
shall continue in office subsequent to the expiration date of the	321
member's term until the member's successor takes office, or until	322
a period of sixty days has elapsed, whichever occurs first. The	323
governor may remove any member appointed by the governor for	324
malfeasance, misfeasance, or nonfeasance after a hearing in	325
accordance with Chapter 119. of the Revised Code.	326

A vacancy on the board shall be filled in the same manner as	327
the original appointment.	328

The members of the board shall serve without compensation but	329
shall receive their reasonable and necessary expenses incurred in	330
the conduct of foundation business.	331

Sections 101.82 to 101.87 of the Revised Code do not apply	332
to the foundation.	333

As used in this section, "major tobacco-producing counties"	334
means any of the counties, ranked in descending order of pounds	335
produced, where ninety-five per cent of the 1998 burley tobacco	336
quota for the state was produced.	337

Sec. 183.14.  The board of trustees of the southern Ohio	338
agricultural and community development foundation shall appoint	339
and set the compensation of an executive director and other	340
employees needed to carry out the duties of the foundation.	341
Before entering upon the discharge of the duties of office, the	342
executive director shall give a bond to the state, to be approved	343
by the governor, conditioned for the faithful performance of the	344
duties of office. The executive director and the other employees	345
of the foundation are state employees and serve in the	346
unclassified service.	347

There is hereby created in the state treasury the southern	348
Ohio agricultural and community development operating expenses	349
fund. The treasurer of state shall periodically pay into the	350
fund, from the southern Ohio agricultural and community	351
development foundation endowment fund created in section 183.16 of	352
the Revised Code, amounts requested by the foundation to pay the	353
compensation of the state employees of the foundation. Amounts	354
credited to the operating expenses fund shall be used by the	355
foundation solely to pay the compensation of the state employees	356
of the foundation. All investment earnings of the operating	357
expenses fund shall be credited to the fund.	358

Sec. 183.30.  (A) Except as provided in division (D) of this	359
section, no more than five per cent of the total expenditures of	360
the tobacco use prevention and control foundation in a fiscal year	361
shall be for administrative expenses of the foundation.	362

(B) Except as provided in division (D) of this section, no	363
more than five per cent of the total expenditures of the southern	364
Ohio agricultural and community development foundation in a fiscal	365
year shall be for administrative expenses of the foundation.	366

(C) Except as provided in division (D) of this section, no	367
more than five per cent of the total expenditures of the	368
biomedical research and technology transfer commission in a fiscal	369
year shall be for administrative expenses of the commission.	370

(D) This section's five per cent limitation on	371
administrative expenses does not apply into any fiscal years 2001	372
and 2002, provided the foundation or commission seeking to spend	373
more than five per cent has submitted a spending plan toyear for	374
which the controlling board and the controlling board has approved	375
theapproves a spending plan that the foundation or commission	376
submits to the board.	377

Sec. 183.34. There is hereby created in the state treasury	378
the tobacco settlement oversight, administration, and enforcement	379
fund, to which shall be credited amounts transferred under	380
division (I) of section 183.02 of the Revised Code. The attorney	381
general shall use the fund to pay costs incurred in the oversight,	382
administration, and enforcement of the tobacco master settlement	383
agreement.	384

Sec. 183.35. There is hereby created in the state treasury	385
the tobacco settlement enforcement fund, to which shall be	386
credited amounts transferred under division (J) of section 183.02	387
of the Revised Code. The tax commissioner shall use the fund to	388
pay costs incurred in the enforcement of divisions (F) and (G) of	389
section 5743.03 of the Revised Code.	390

Sec. 5743.03. (A) Except as provided in section 5743.04 of	391
the Revised Code, the taxes imposed under sections 5743.02,	392
5743.023, 5743.024, and 5743.026 of the Revised Code shall be paid	393
by the purchase of stamps. A stamp shall be affixed to each	394
package of an aggregate denomination not less than the amount of	395
the tax upon the contents thereof. The stamp, so affixed, shall	396
be prima-facie evidence of payment of the tax. Except as is	397
provided in the rules prescribed by the tax commissioner under	398
authority of sections 5743.01 to 5743.20 of the Revised Code, and	399
unless such stamps have been previously affixed, they shall be so	400
affixed by each wholesale dealer, and canceled by writing or	401
stamping across the face thereof the number assigned to such	402
wholesale dealer by the tax commissioner for that purpose, prior	403
to the delivery of any cigarettes to any person in this state, or	404
in the case of a tax levied pursuant to section 5743.024 or	405
5743.026 of the Revised Code, prior to the delivery of cigarettes	406
to any person in the county in which the tax is levied.	407

(B) Except as provided in the rules prescribed by the	408
commissioner under authority of sections 5743.01 to 5743.20 of the	409
Revised Code, and unless such stamps have been previously affixed,	410
each retail dealer shall within twenty-four hours after the	411
receipt of any cigarettes at the retail dealer's place of business	412
and prior to the delivery thereof to any person in this state, or	413
in the case of a tax levied pursuant to section 5743.024 or	414
5743.026 of the Revised Code prior to the delivery thereof to any	415
person in the county in which the tax is levied, so affix such	416
stamps and cancel same by writing or stamping across the face	417
thereof the number assigned to such retail dealer by the	418
commissioner for that purpose.	419

(C) Whenever any cigarettes are found in the place of	420
business of any retail dealer without proper tax stamps affixed	421
thereto and canceled, it is presumed that such cigarettes are kept	422
therein in violation of sections 5743.01 to 5743.20 of the Revised	423
Code.	424

(D) Each wholesale dealer and each retail dealer who	425
purchases cigarettes without proper tax stamps affixed thereto	426
shall, on or before the thirty-first day of the month following	427
the close of each semiannual period, which period shall end on the	428
thirtieth day of June and the thirty-first day of December of each	429
year, make and file a return of the preceding semiannual period,	430
on such form as is prescribed by the tax commissioner, showing the	431
dealer's entire purchases and sales of cigarettes and stamps or	432
impressions for such semiannual period and accurate inventories as	433
of the beginning and end of each semiannual period of cigarettes,	434
stamped or unstamped; cigarette tax stamps affixed or unaffixed	435
and unused meter impressions; and such other information as the	436
commissioner finds necessary to the proper administration of	437
sections 5743.01 to 5743.20 of the Revised Code. The commissioner	438
may extend the time for making and filing returns and may remit	439
all or any part of amounts of penalties whichthat may become due	440
under sections 5743.01 to 5743.20 of the Revised Code. The	441
wholesale or retail dealer shall deliver the return together with	442
a remittance of the tax deficiency reported thereon to the	443
treasurer of state. The treasurer of state shall stamp or	444
otherwise mark on the return the date it was received and shall	445
also show thereon by stamp or otherwise a payment or nonpayment of	446
the deficiency shown by the return. Thereafter, the treasurer of	447
state shall immediately transmit all returns filed under this	448
section to the commissioner. Any	449

(E) Any wholesale or retail dealer who fails to file a return	450
under this section and the rules of the commissioner, other than a	451
report required pursuant to division (F) of this section, may be	452
required, for each day the dealer so fails, to forfeit and pay	453
into the state treasury the sum of one dollar as revenue arising	454
from the tax imposed by sections 5743.01 to 5743.20 of the Revised	455
Code and such sum may be collected by assessment in the manner	456
provided in section 5743.081 of the Revised Code. If the	457
commissioner finds it necessary in order to insure the payment of	458
the tax imposed by sections 5743.01 to 5743.20 of the Revised	459
Code, the commissioner may require returns and payments to be made	460
other than semiannually. The returns shall be signed by the	461
wholesale or retail dealer or an authorized agent thereof.	462

(F) Each person required to file a tax return under section	463
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to	464
the commissioner the quantity of all cigarettes and roll-your-own	465
cigarette tobacco sold in Ohio for each brand not covered by the	466
tobacco master settlement agreement for which the person is liable	467
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of	468
the Revised Code.	469

As used in this division, "tobacco master settlement	470
agreement" has the same meaning as in section 183.01 of the	471
Revised Code.	472

(G) The report required by division (F) of this section	473
shall be made on a form prescribed by the commissioner and shall	474
be filed not later than the last day of each month for the	475
previous month, except that if the commissioner determines that	476
the quantity reported by a person does not warrant monthly	477
reporting, the commissioner may authorize reporting at less	478
frequent intervals. The commissioner may assess a penalty of not	479
more than two hundred fifty dollars for each month or portion	480
thereof that a person fails to timely file a required report, and	481
such sum may be collected by assessment in the manner provided in	482
section 5743.081 of the Revised Code. All money collected under	483
this division shall be considered as revenue arising from the	484
taxes imposed by sections 5743.01 to 5743.20 of the Revised Code.	485

Sec. 5743.99.  (A) Whoever violates section 5743.10,	486
5743.11, or 5743.12 or division (C) of section 5743.54 of the	487
Revised Code is guilty of a misdemeanor of the first degree. If	488
the offender has been previously convicted of an offense under	489
this division, violation is a felony of the fourth degree.	490

(B) Whoever violates section 5743.111, 5743.112, 5743.13,	491
5743.14, 5743.59, or 5743.60 of the Revised Code is guilty of a	492
felony of the fourth degree. If the offender has been previously	493
convicted of an offense under this division, violation is a felony	494
of the second degree.	495

(C) Whoever violates section 5743.41 or 5743.42 of the	496
Revised Code is guilty of a misdemeanor of the fourth degree. If	497
the offender has been previously convicted of an offense under	498
this division, violation is a misdemeanor of the third degree.	499

(D) Whoever violates section 5743.21 of the Revised Code is	500
guilty of a misdemeanor of the first degree. If the offender has	501
been previously convicted of an offense under this division,	502
violation is a felony of the fifth degree.	503

(E) Whoever violates division (F) of section 5743.03 of the	504
Revised Code is guilty of a misdemeanor of the fourth degree.	505

(F) Whoever violates any provision of this chapter, or any	506
rule promulgated by the tax commissioner under authority of this	507
chapter, for the violation of which no penalty is provided	508
elsewhere, is guilty of a misdemeanor of the fourth degree.	509

(F)(G) In addition to any other penalty imposed upon a	510
person convicted of a violation of section 5743.112 or 5743.60 of	511
the Revised Code who was the operator of a motor vehicle used in	512
the violation, the registrar of motor vehicles shall suspend any	513
driver's or commercial driver's license issued to the offender	514
pursuant to the order and determination of the trial judge of any	515
court of record as provided in section 4507.16 of the Revised	516
Code.	517

Section 2. That existing sections 126.02, 183.02, 183.06,	518
183.12, 183.14, 183.30, 5743.03, and 5743.99 and section 183.31 of	519
the Revised Code are hereby repealed.	520

Section 3.  All items in Sections 4 to 13 of this act are	521
hereby appropriated as designated out of any moneys in the state	522
treasury to the credit of the designated fund that are not	523
otherwise appropriated. For all appropriations made in this	524
section, those in the first column are for fiscal year 2003 and	525
those in the second column are for fiscal year 2004.	526

Section 4. ADA DEPARTMENT OF ALCOHOL AND DRUG ADDICTION	527
SERVICES	528

Section 5. AGO ATTORNEY GENERAL

535

Tobacco Master Settlement Agreement Fund Group

536

LAW ENFORCEMENT IMPROVEMENTS TRUST FUND

541

The foregoing appropriation item 055-635, Law Enforcement	542
Technology, Training, and Facility Enhancements shall be used in	543
accordance with section 183.10 of the Revised Code.	544
Notwithstanding anything to the contrary contained in sections	545
9.33 to 9.332 and Chapters 123. and 153. of the Revised Code, the	546
Office of the Attorney General may negotiate, enter into, and	547
administer a contract that combines both the design and	548
construction elements into one contract for the Ohio Peace Officer	549
Training Academy Outdoor Training Facility and Improvements	550
project, which is funded from appropriation item 055-635, Law	551
Enforcement Technology, Training, and Facility Enhancements.	552

Section 6. DOH DEPARTMENT OF HEALTH

553

Tobacco Master Settlement Agreement Fund Group

554

Section 7. MIH COMMISSION ON MINORITY HEALTH

568

Section 8. DHS DEPARTMENT OF PUBLIC SAFETY

575

Section 9. BOR BOARD OF REGENTS

581

Tobacco Master Settlement Agreement Fund Group

582

Section 10. NET SCHOOLNET COMMISSION

589

Tobacco Master Settlement Agreement Fund Group

590

EDUCATION TECHNOLOGY TRUST FUND

596

The foregoing appropriation item 228-602, Education	597
Technology Trust Fund, shall be used by the SchoolNet Commission	598
for grants to school districts and other entities and for the	599
costs of administering these grants. Of the total amount for	600
grants, $1,917,293 in fiscal year 2003 shall be used for the Ohio	601
ONEnet project, $909,247 in fiscal year 2003 shall be used for the	602
INFOhio Network, $298,750 in fiscal year 2003 shall be used for	603
the JASON Project, $1,000,000 in fiscal year 2003 shall be used	604
for RISE Learning Solutions, and $200,000 in fiscal year 2003	605
shall be used for the Stark County School Teacher Technical	606
Training Center. The remaining amount for grants shall be made to	607
school districts.	608

The JASON Project shall provide funding for statewide access	609
and a seventy-five per cent subsidy for statewide licensing of	610
JASON content for 90,000 middle school students statewide, and	611
professional development for teachers participating in the JASON	612
Project.	613

It is the intent of the General Assembly that the SchoolNet	614
Commission, in conjunction with RISE Learning Solutions, shall	615
develop a program that may be conducted in conjunction with	616
state-supported technology programs, including, but not limited	617
to, SchoolNet Commission appropriation item 228-406, Technical and	618
Instructional Professional Development, and appropriation item	619
228-539, Education Technology, and that shall be designed to	620
educate preschool staff members and providers on developmentally	621
appropriate teaching methods, behavior guidance, and literacy and	622
to involve parents more closely in the education and development	623
of their children. The program shall include an interactive	624
instructional component, delivered using satellite television,	625
Internet, and with facilitation, and shall be distributed to	626
program participants using the established satellite receiver	627
dishes on public schools, Head Start centers, and childcare	628
centers at up to 100 locations throughout the state. The	629
interactive instructional component of the program shall be	630
developed to enhance the professional development, training, and	631
performance of preschool staff members, the education and	632
care-giving skills of the parents of preschool children, and the	633
preparation of preschool-age children for learning.	634

The program shall utilize the grant to continue a	635
direct-service component that shall include at least three	636
teleconferences that may be distributed by Ohio-based public	637
television utilizing satellite or microwave technology in a manner	638
designed to promote interactive communications between the program	639
participants located at subsites within the Ohio Educational	640
Broadcast Network or as determined by the commission. Program	641
participants shall communicate with trainers and participants at	642
other program sites through telecommunications and facsimile and	643
on-line computer technology. As much as possible, the	644
direct-service component shall utilize systems currently available	645
in state-supported technology programs and conduct the component	646
in a manner that promotes innovative, interactive communications	647
between program participants at all the sites. Parent support	648
groups and teacher training sessions shall supplement the	649
teleconferences and shall occur on a local basis.	650

RISE Learning Solutions may subcontract components of the	651
program.	652

Individuals eligible to participate in the program include	653
those children, their parents, custodians, or guardians, and	654
preschool staff members who are eligible to participate in a	655
preschool program as defined in division (A) of section 3301.52	656
and section 5104.02 of the Revised Code.	657

The components of the program, including two that shall be	658
developed in support of teacher proficiency in teaching reading to	659
prekindergarten and kindergarten to third grade students, at the	660
direction of the Department of Education, may include: two	661
three-hour broadcast seminars from a central up-link station,	662
distributed in up to 88 counties; high production-value video	663
sought in various locations; and direct interactive adult learning	664
activities. These two components shall include development of	665
workbooks and involve at least three small, group-facilitated	666
follow-up discussion workshops and development and distribution of	667
at least two home videos. The program shall also provide Internet	668
access, interactive lines, bulletin board, and CD-ROM.	669

Upon completion of each of the school years for which the	670
grant was made, RISE Learning Solutions shall issue a report to	671
the commission and members of the General Assembly explaining the	672
goals and objectives determined, the activities implemented, the	673
progress made toward the achievement of the goals and objectives,	674
and the outcome of the program.	675

The commission shall use the remaining appropriation	676
authority in fiscal year 2003 and appropriation authority granted	677
in fiscal year 2004 to establish and equip, through the SchoolNet	678
Plus Program, at least one interactive computer station for each	679
five children enrolled in the sixth grade as determined by a	680
three-year average adjusted per pupil property valuation pursuant	681
to division (A) of section 3317.03 of the Revised Code. Districts	682
in the first two quartiles of wealth shall receive $380 per pupil	683
for students in grade six to purchase classroom computers for the	684
sixth grade. Districts in the third and fourth quartile shall	685
receive approximately $188 per sixth grade pupil. If a district	686
has met the state's goal of one computer to every five students,	687
the district may use funds provided through the SchoolNet Plus	688
Program to purchase computers for grade seven or to fulfill	689
educational technology needs on other grades as specified in the	690
district's technology plan. When there is at least one computer	691
for each five children enrolled in the sixth grade, SchoolNet	692
shall use any remaining funds appropriated to establish and equip	693
at least one interactive computer workstation for each five	694
children enrolled in the seventh grade as determined by the	695
previously defined formula.	696

Section 11. SOA SOUTHERN OHIO AGRICULTURAL AND COMMUNITY	697
DEVELOPMENT FOUNDATION	698

Tobacco Master Settlement Agreement Fund Group

699

INVESTMENT EARNINGS ON OPERATING EXPENSES FUND

705

On July 1, 2002, or as soon thereafter as possible, the	706
Director of Budget and Management shall transfer the investment	707
earnings that would have been credited to the Southern Ohio	708
Agricultural and Community Development Operating Expenses Fund	709
(Fund 5M9) established in section 183.14 of the Revised Code for	710
fiscal years 2001 and 2002, which were credited to the General	711
Revenue Fund, from the General Revenue Fund to the Southern Ohio	712
Agricultural and Community Development Operating Expenses Fund	713
(Fund 5M9).	714

Section 12. TAX DEPARTMENT OF TAXATION

715

Section 13. TUP TOBACCO USE AND PREVENTION CONTROL	721
FOUNDATION	722

INVESTMENT EARNINGS ON OPERATING EXPENSES FUND

727

On July 1, 2002, or as soon thereafter as possible, the	728
Director of Budget and Management shall transfer the investment	729
earnings that would have been credited to the Tobacco Use	730
Prevention and Control Operating Expenses Fund (Fund 5M8)	731
established in section 183.06 of the Revised Code for fiscal years	732
2001 and 2002, which were instead credited to the General Revenue	733
Fund, from the General Revenue Fund to the Tobacco Use Prevention	734
and Control Operating Expenses Fund (Fund 5M8).	735

Section 14.  All items set forth in this section are hereby	736
appropriated out of any moneys in the state treasury to the credit	737
of the Education Facilities Trust Fund (Fund N87) that are not	738
otherwise appropriated.	739

Appropriations

SFC SCHOOL FACILITIES COMMISSION

740

Section 14.01.  Section 14 of this act shall remain in full	745
force and effect commencing on July 1, 2002, and terminating on	746
June 30, 2004, for the purpose of drawing money from the state	747
treasury in payment of liabilities lawfully incurred thereunder,	748
and on June 30, 2004, and not before, the moneys appropriated	749
thereby shall lapse into the funds from which they are severally	750
appropriated.	751

The appropriations made in Section 14 of this act are	752
subject to all provisions of the capital appropriations act	753
governing the 2002-2004 biennium that are generally applicable to	754
such appropriations. Expenditures from appropriations contained	755
in Section 14 shall be accounted for as though made in the	756
capital appropriations act governing the 2002-2004 biennium.	757

Section 15. TRANSFER FROM TOBACCO MASTER SETTLEMENT AGREEMENT	758
FUND TO CONTROLLING BOARD EMERGENCY PURPOSES FUND	759

Notwithstanding section 183.02 of the Revised Code, on July	760
1, 2002, or as soon thereafter as possible, the Director of Budget	761
and Management shall transfer $368,301 in cash from the net amount	762
credited to the Tobacco Master Settlement Agreement Fund (Fund	763
087) to the Controlling Board Emergency Purposes Fund (Fund 5S4).	764
The amount transferred is hereby appropriated.	765

The transfer made under this section shall be made after the	766
transfers made under divisions (F) and (G) of section 183.02 of	767
the Revised Code, but prior to the transfers made under divisions	768
(A) to (E) and (I) and (J) of section 183.02 of the Revised Code.	769
The amount transferred shall reimburse the Controlling Board	770
Emergency Purposes Fund (Fund 5S4) for the amounts transferred to	771
the Attorney General and the Department of Taxation to pay for the	772
expenses associated with the enforcement of the tobacco master	773
settlement agreement in fiscal year 2002.	774

Section 16. That Section 32 of Am. Sub. H.B. 405 of the 124th	775
General Assembly be amended to read as follows:	776

"       Sec. 32. TRANSFER FROM THE TOBACCO MASTER SETTLEMENT	777
AGREEMENT FUND TO THE GENERAL REVENUE FUND	778

(A) Notwithstanding section 183.02 of the Revised Code, on	779
or before June 30, 2002, the Director of Budget and Management may	780
transfer up to $120,000,000 from the Tobacco Master Settlement	781
Agreement Fund (Fund 087) to the General Revenue Fund.	782

Notwithstanding section 183.02 of the Revised Code, on or	783
before June 30, 2003, the Director of Budget and Management may	784
transfer up to $120,000,000 from the Tobacco Master Settlement	785
Agreement Fund (Fund 087) to the General Revenue Fund.	786

Of the tobacco revenue that is credited to the Tobacco Master	787
Settlement Agreement Fund in fiscal year 2002 and in fiscal year	788
2003, the share that is determined pursuant to section 183.02 of	789
the Revised Code to be the amount to be transferred by the	790
Director of Budget and Management from the Tobacco Master	791
Settlement Agreement Fund to the Tobacco Use Prevention and	792
Cessation Trust Fund shall be reduced by the amount that is	793
transferred from the Tobacco Master Settlement Agreement Fund to	794
the General Revenue Fund in accordance with this division.	795

(B) Notwithstanding section 183.02 of the Revised Code, on	796
or before June 30, 2003, the Director of Budget and Management may	797
make one or more transfers from the Tobacco Master Settlement	798
Agreement Fund (Fund 087) to the General Revenue Fund that in	799
total do not exceed $20,000,000$36,240,000. From the tobacco	800
revenue that is credited to the Tobacco Master Settlement	801
Agreement Fund in fiscal years 2002 and 2003, the shares that are	802
determined pursuant to section 183.02 of the Revised Code to be	803
the amounts to be transferred by the Director of Budget and	804
Management from the Tobacco Master Settlement Agreement Fund to	805
the various trust fundsSouthern Ohio Agricultural and Community	806
Development Trust Fund (Fund K87) and the Ohio's Public Health	807
Priorities Trust Fund (Fund L87) shall be reduced in each fiscal	808
year to provide the revenue for the transfers under this division	809
in a manner to be determined in the tobacco revenue budget act for	810
fiscal years 2003 and 2004, but such manner shall not provide for	811
any reductions in the shares determined for the Education	812
Facilities Trust Fund (Fund N87), Education Facilities Endowment	813
Fund (Fund P87), Education Technology Trust Fund (Fund S87), and	814
Biomedical Research and Technology Transfer Trust Fund (Fund M87).	815
The Director of Budget and Management shall not make any transfers	816
pursuant to this division until it is determined how the shares	817
are to be reduced, except that the revenue by which the Ohio's	818
Public Priorities Trust Fund (Fund L87) is reduced under this	819
division shall not exceed $3,900,000.	820

(C) Notwithstanding section 183.02 of the Revised Code, if	821
the tobacco revenue that is credited to the Tobacco Master	822
Settlement Agreement Fund (Fund 087) in fiscal year 2002 is	823
between $364,000,000 and $418,783,038.09, on July 15, 2002, or as	824
soon thereafter as possible, the Director of Budget and Management	825
shall transfer 42.52 per cent of the amount in excess of	826
$364,000,000 but not in excess of $418,783,038.09 to the Ohio's	827
Public Health Priorities Trust Fund (Fund L87) and 57.48 per cent	828
of the amount in excess of $364,000,000 but not in excess of	829
$418,783,038.09 to the Southern Ohio Agricultural and Community	830
Development Trust Fund (Fund K87).	831

(D) Notwithstanding section 183.02 of the Revised Code, if	832
the tobacco revenue that is credited to the Tobacco Master	833
Settlement Agreement Fund (Fund 087) in fiscal year 2003 is	834
between $372,700,000 and $422,746,368.61, on July 15, 2003, or as	835
soon thereafter as possible, the Director of Budget and Management	836
shall transfer 43.64 per cent of the amount in excess of	837
$372,700,000 but not in excess of $422,746,368.61 to the Ohio's	838
Public Health Priorities Trust Fund (Fund L87) and 56.36 per cent	839
of the amount in excess of $372,700,000 but not in excess of	840
$422,746,368.61 to the Southern Ohio Agricultural and Community	841
Development Trust Fund (Fund K87).	842

(E) If the state receives any payments of moneys from an	843
escrow account that has been established by a tobacco company that	844
is participating in the master settlement agreement while that	845
company is disputing a portion of its calculated payment, the	846
Director of Budget and Management shall transfer the moneys	847
received according to the percentages contained in division (C) of	848
this section for fiscal year 2002 and division (D) of this section	849
for fiscal year 2003.	850

(F) The amounts transferred to the Ohio's Public Health	851
Priorities Trust Fund (Fund L87) pursuant to divisions (C), (D),	852
and (E) of this section shall not exceed a total of $3.9 million.	853

(G) Any payment credited to the Tobacco Master Settlement	854
Agreement Fund (Fund 087) that exceeds $418,783,038.09 in fiscal	855
year 2002 or exceeds $422,746,368.61 in fiscal year 2003 shall be	856
transferred pursuant to division (L) of section 183.02 of the	857
Revised Code."	858

Section 17. That existing Section 32 of Am. Sub. H.B. 405 of	859
the 124th General Assembly is hereby repealed.	860

Section 18.  PERSONAL SERVICE EXPENSES

861

Unless otherwise prohibited by law, each appropriation in	862
this act from which personal service expenses are paid shall bear	863
the employer's share of public employees' retirement, workers'	864
compensation, disabled workers' relief, and all group insurance	865
programs; the costs of centralized accounting, centralized payroll	866
processing, and related personnel reports and services; the cost	867
of the Office of Collective Bargaining; the cost of the Personnel	868
Board of Review; the cost of the Employee Assistance Program; the	869
cost of the Equal Opportunity Center; the costs of interagency	870
information management infrastructure; and the cost of	871
administering the state employee merit system as required by	872
section 124.07 of the Revised Code. Such costs shall be	873
determined in conformity with appropriate sections of law and paid	874
in accordance with procedures specified by the Office of Budget	875
and Management.	876

Section 19. That Section 103.03 of Am. Sub. H.B. 94 of the	877
124th General Assembly is hereby repealed.	878

Section 20.  Except as otherwise specifically provided in	879
this act, the codified and uncodified sections of law contained in	880
this act, and the items of law of which the codified and	881
uncodified sections of law contained in this act are composed, are	882
subject to the referendum. Therefore, under Ohio Constitution,	883
Article II, Section 1c and section 1.471 of the Revised Code, the	884
codified and uncodified sections of law contained in this act, and	885
the items of law of which the codified and uncodified sections of	886
law contained in this act are composed, take effect on the	887
ninety-first day after this act is filed with the Secretary of	888
State. If, however, a referendum petition is filed against any	889
such codified or uncodified section of law contained in this act,	890
or against any item of law of which any such codified or	891
uncodified section of law contained in this act is composed, the	892
codified or uncodified section of law, or item of law, unless	893
rejected at the referendum, takes effect at the earliest time	894
permitted by law.	895

Section 21. Sections 3 to 13 and 15 to 24 of this act are not	896
subject to the referendum. Therefore, under Ohio Constitution,	897
Article II, Section 1d and section 1.471 of the Revised Code, this	898
section and Sections 3 to 13 and 15 to 24 of this act go into	899
immediate effect when this act becomes law.	900

Section 22. Sections 183.02, 183.06, 183.14, 183.30, 183.34,	901
and 183.35 of the Revised Code as amended or enacted by this act,	902
and the items of law of which such sections as amended or enacted	903
by this act are composed, are not subject to the referendum.	904
Therefore, under Ohio Constitution, Article II, Section 1d and	905
section 1.471 of the Revised Code, such sections as amended or	906
enacted by this act, and the items of law of which such sections	907
as amended or enacted by this act are composed, go into immediate	908
effect when this act becomes law.	909

Section 23.  The repeal by this act of section 183.31 of	910
the Revised Code is not subject to the referendum. Therefore,	911
under Ohio Constitution, Article II, Section 1d and section 1.71	912
of the Revised Code, the repeal goes into immediate effect when	913
this act becomes law.	914

Section 24. The repeal of Section 103.03 of Am. Sub. H.B. 94	915
of the 124th General Assembly is not subject to the referendum.	916
Therefore, under Ohio Constitution, Article II, Section 1d and	917
section 1.471 of the Revised Code, the repeal of Section 103.03 is	918
entitled to go into immediate effect when this act becomes law.	919
However, Section 103.03 of Am. Sub. H.B. 94 of the 124th General	920
Assembly takes effect on July 1, 2002, or the day this act becomes	921
law, whichever is later.	922