Am. Sub. S. B. No. 261 As Passed by the House

SENATOR Carnes

REPRESENTATIVE Calvert

A BILL

To amend sections 124.151, 131.44, 173.06, 173.40,

2913.40, 3721.51, 3721.56, 5101.11, 5111.02,

5111.10, 5111.86, 5111.871, 5112.01, 5112.06,

5112.07, 5112.11, 5123.041, 5126.053, 5126.17,

5733.01, 5733.04, 5733.40, 5740.03, 5743.02,

5743.03, 5743.04, 5743.08, 5743.081, 5743.12,

5743.13, 5743.14, 5743.32, 5743.33, 5743.34,

5743.35, 5747.01, 5747.02, 5747.05, 5747.21,

5901.02, 5901.03, and 5919.34; to amend, for the

purpose of adopting new section numbers as

indicated in parentheses, sections 5111.10

(5111.90), 5111.86 (5111.91), and 5126.17

(5126.18); to enact sections 131.441, 173.061,

173.062, 173.07, 173.071, 173.072, 5111.0112,

5111.082, 5111.091, 5111.92, 5111.93, 5111.94,

5747.212, and 5901.021; and to repeal sections

5126.16, 5126.18, 5743.023, and 5743.322 of the

Revised Code and to amend Section 8 of Am. Sub.

S.B. 172 of the 123rd General Assembly; to amend

Section 5.02 of Sub. H.B. 73 of the 124th General

Assembly, as subsequently amended; to amend

Sections 16, 16.02, 44, 44.19, 63.07, 63.35, 75.02,

94, 94.02, 94.06, 94.07, and 125 of Am. Sub. H.B.

94 of the 124th General Assembly; to amend Section

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

Assembly, as subsequently amended; to amend

Sections 63 and 63.37 of Am. Sub. H.B. 94 of the

124th General Assembly, as subsequently amended; to

amend Section 29 of Am. Sub. H.B. 405 of the 124th

General Assembly; and to repeal Section 31 of Am.

Sub. H.B. 405 of the 124th General Assembly to

increase the rate of tax on cigarettes; to make

other tax modifications; to provide authorization

and conditions for the operation of state programs;

to make other budgetary and program modifications;

and to make operating appropriations for the

period ending June 30, 2003, and capital

appropriations for the period ending June 30, 2004.

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

Section 1. That sections 124.151, 131.44, 173.06, 173.40,	39
2913.40, 3721.51, 3721.56, 5101.11, 5111.02, 5111.10, 5111.86,	40
5111.871, 5112.01, 5112.06, 5112.07, 5112.11, 5123.041, 5126.053,	41
5126.17, 5733.01, 5733.04, 5733.40, 5740.03, 5743.02, 5743.03,	42
5743.04, 5743.08, 5743.081, 5743.12, 5743.13, 5743.14, 5743.32,	43
5743.33, 5743.34, 5743.35, 5747.01, 5747.02, 5747.05, 5747.21,	44
5901.02, 5901.03, and 5919.34 be amended; sections 5111.10	45
(5111.90), 5111.86 (5111.91), and 5126.17 (5126.18) be amended for	46
the purpose of adopting new section numbers as indicated in	47
parentheses; and sections 131.441, 173.061, 173.062, 173.07,	48
173.071, 173.072, 5111.0112, 5111.082, 5111.091, 5111.92, 5111.93,	49
5111.94, 5747.212, and 5901.021 of the Revised Code be enacted to	50
read as follows:	51

Sec. 124.151. (A) As used in this section, "compensation"	52
includes, but is not limited to, wages and salary, travel	53
allowances paid pursuant to section 101.27 of the Revised Code,	54
and benefits paid pursuant to sections 124.13, 124.19, 124.381,	55
124.382, 124.383, 124.384, 124.385, and 124.386 of the Revised	56
Code.	57

(B) The compensation of any employee whose employment	58
commenced on or after the effective date of this amendment and who	59
is paid by warrant of the auditor of state shall~~, upon the written~~	60
~~authorization of the employee~~ be paid by direct deposit. ~~Such~~Each	61
such employee shall provide to the appointing authority a written	62
authorization for payment by direct deposit. The authorization	63
shall include the designation of a financial institution equipped	64
to accept direct deposits and the number of the account into which	65
the deposit is to be made. The authorization shall remain in	66
effect until withdrawn in writing by the employee or until	67
dishonored by the financial institution. The director of	68
administrative services shall provide by rule adopted under	69
Chapter 119. of the Revised Code for the direct deposit in a	70
financial institution of the compensation of an employee who fails	71
to provide to the appointing authority a written authorization for	72
payment by direct deposit.	73

Sec. 131.44. (A) As used in this section:

(1) "Surplus revenue" means the excess, if any, of the total	75
fund balance over the required year-end balance.	76

(2) "Total fund balance" means the sum of the unencumbered	77
balance in the general revenue fund on the last day of the	78
preceding fiscal year ~~plus~~, the balance in the excess tax receipts	79
fund created under section 131.441 of the Revised Code on the last	80
day of the preceding fiscal year, and the balance in the budget	81
stabilization fund.	82

(3) "Required year-end balance" means the sum of the	83
following:	84

(a) Five per cent of the general revenue fund revenues for	85
the preceding fiscal year;	86

(b) "Ending fund balance," which means one-half of one per	87
cent of general revenue fund revenues for the preceding fiscal	88
year;	89

(c) "Carryover balance," which means, with respect to a	90
fiscal biennium, the excess, if any, of the estimated general	91
revenue fund appropriation and transfer requirement for the second	92
fiscal year of the biennium over the estimated general revenue	93
fund revenue for that fiscal year;	94

(d) "Capital appropriation reserve," which means the amount,	95
if any, of general revenue fund capital appropriations made for	96
the current biennium that the director of budget and management	97
has determined will be encumbered or disbursed;	98

(e) "Income tax reduction impact reserve," which means an	99
amount equal to the reduction projected by the director of budget	100
and management in income tax revenue in the current fiscal year	101
attributable to the previous reduction in the income tax rate made	102
by the tax commissioner pursuant to division (B) of section	103
5747.02 of the Revised Code.	104

(4) "Estimated general revenue fund appropriation and	105
transfer requirement" means the most recent adjusted	106
appropriations made by the general assembly from the general	107
revenue fund and includes both of the following:	108

(a) Appropriations made and transfers of appropriations from	109
the first fiscal year to the second fiscal year of the biennium in	110
provisions of acts of the general assembly signed by the governor	111
but not yet effective;	112

(b) Transfers of appropriation from the first fiscal year to	113
the second fiscal year of the biennium approved by the controlling	114
board.	115

(5) "Estimated general revenue fund revenue" means the most	116
recent such estimate available to the director of budget and	117
management.	118

(B)(1) Not later than the thirty-first day of July each	119
year, the director of budget and management shall determine the	120
surplus revenue that existed on the preceding thirtieth day of	121
June and transfer from the general revenue fund, to the extent of	122
the unobligated, unencumbered balance on the preceding thirtieth	123
day of June in excess of one-half of one per cent of the general	124
revenue fund revenues in the preceding fiscal year, and from the	125
excess tax receipts fund, the following:	126

(a) First, to the budget stabilization fund, any amount	127
necessary for the balance of the budget stabilization fund to	128
equal five per cent of the general revenue fund revenues of the	129
preceding fiscal year;	130

(b) Then, to the income tax reduction fund, which is hereby	131
created in the state treasury, an amount equal to the surplus	132
revenue.	133

(2) Not later than the thirty-first day of July each year,	134
the director shall determine the percentage that the balance in	135
the income tax reduction fund is of the amount of revenue that the	136
director estimates will be received from the tax levied under	137
section 5747.02 of the Revised Code in the current fiscal year	138
without regard to any reduction under division (B) of that	139
section. If that percentage exceeds thirty-five one hundredths of	140
one per cent, the director shall certify the percentage to the tax	141
commissioner not later than the thirty-first day of July.	142

(C) The director of budget and management shall transfer	143
money in the income tax reduction fund to the general revenue	144
fund, the local government fund, the library and local government	145
support fund, and the local government revenue assistance fund as	146
necessary to offset revenue reductions resulting from the	147
reductions in taxes required under division (B) of section 5747.02	148
of the Revised Code in the respective amounts and percentages	149
prescribed by divisions (A)(1), (2), and (4) of section 5747.03 of	150
the Revised Code as if the amount transferred had been collected	151
as taxes under Chapter 5747. of the Revised Code. If no	152
reductions in taxes are made under that division that affect	153
revenue received in the current fiscal year, the director shall	154
not transfer money from the income tax reduction fund to the	155
general revenue fund, the local government fund, the library and	156
local government support fund, and the local government revenue	157
assistance fund.	158

Sec. 131.441. (A) As used in this section:

159

(1) "Base year revenue" means sixteen billion one hundred	160
ninety-five million eight hundred thousand dollars.	161

(2) "Target revenue" for each fiscal year after fiscal year	162
2002 means the target fiscal year revenue for the preceding fiscal	163
year multiplied by the greater of the following:	164

(a) One hundred three per cent;

165

(b) One hundred per cent plus the percentage increase in the	166
consumer price index prepared by the United States bureau of labor	167
statistics (all urban consumers, all items) for the twelve-month	168
period ending on the thirty-first day of December preceding the	169
determination made under division (C) of this section.	170

For fiscal year 2002, "target revenue" equals the base year	171
revenue multiplied by the greater of the quantities described in	172
divisions (A)(2)(a) and (b) of this section.	173

(3) "Actual revenue" for a fiscal year means the total	174
amount of taxes credited to the general revenue fund in the fiscal	175
year plus transfers made in the fiscal year from the income tax	176
reduction fund to the general revenue fund under division (C) of	177
section 131.44 of the Revised Code.	178

(4) "Excess revenue" for a fiscal year means the excess, if	179
any, of actual revenue for that fiscal year over the target	180
revenue for that fiscal year.	181

(B) There is hereby created in the state treasury the excess	182
tax receipts fund. Money in the fund shall not be transferred or	183
appropriated from the fund except as provided in division (B)(1)	184
of section 131.44 of the Revised Code.	185

(C) On the thirtieth day of June each year, the director of	186
budget and management shall transfer from the general revenue fund	187
to the excess tax receipts fund an amount equal to the excess	188
revenue for the fiscal year ending on that day.	189

Sec. 173.06. (A) The director of aging shall establish a	190
golden buckeye card program and provide a golden buckeye card to	191
any resident of this state who applies to the director for a card	192
and who is sixty years of age or older or disabled. The director	193
shall devise programs to provide benefits of any kind to card	194
holders, and encourage support and participation in them by all	195
persons, including governmental organizations. Card holders shall	196
be entitled to any benefits granted to them by private persons or	197
organizations, the laws of this state, or ordinances or	198
resolutions of political subdivisions. This section does not	199
require any person or organization to provide benefits to any card	200
holder. The department of aging shall bear all costs of the	201
program, except that the department is not required to bear any	202
costs related to the prescription drug discount programs	203
established pursuant to section 173.061 of the Revised Code.	204

(B) Before issuing a golden buckeye card to any person, the	205
director shall establish the identity of any person who applies	206
for a card and shall ascertain that such person is sixty years of	207
age or older or disabled. The director shall adopt rules under	208
Chapter 119. of the Revised Code to prevent the issuance of cards	209
to persons not qualified to have them. Cards shall contain the	210
signature of the card holder and any other information the	211
director considers necessary to carry out the purposes of the	212
golden buckeye card program under this section. Any card that the	213
director issues shall be held in perpetuity by the original card	214
holder and shall not be transferable to any other person. A	215
person who loses ~~his~~the person's card may obtain another card	216
from the director upon providing the same information to the	217
director as was required for the issuance of the original card.	218

(C) No person shall use a golden buckeye card except to	219
obtain a benefit for the holder of the card to which the holder is	220
entitled under the conditions of the offer.	221

(D) As used in this section, "disabled person" means a	222
person who has some impairment of body or mind that makes the	223
person unfit to work at any substantially remunerative employment	224
that ~~he or she~~the person is substantially able to perform and	225
that will, with reasonable probability, continue for a period of	226
at least twelve months without any present indication of recovery	227
therefrom, or who has been certified as permanently and totally	228
disabled by an agency of this state or the United States having	229
the function of so classifying persons.	230

Sec. 173.061. (A) As used in this section:

231

(1) "Prescription drug" means a drug that may not be	232
dispensed without a prescription from a licensed health	233
professional authorized to prescribe drugs.	234

(2) "Drug," "licensed health professional authorized to	235
prescribe drugs," "pharmacy," and "prescription" have the same	236
meanings as in section 4729.01 of the Revised Code.	237

(3) "Disabled person" has the same meaning as in section	238
173.06 of the Revised Code.	239

(B) The director of aging shall establish one or more	240
prescription drug discount card programs that enable cardholders	241
to receive discounts on prescription drugs dispensed at	242
participating pharmacies. A card shall be provided to any resident	243
of this state who applies in accordance with rules adopted by the	244
director pursuant to division (F) of this section and is sixty	245
years of age or older or is a disabled person.	246

If the director establishes more than one prescription drug	247
discount card program under this section, an eligible resident may	248
participate in one or more or all of the programs.	249

(C)(1) The director shall solicit and accept proposals from	250
entities separate from the department of aging to provide for	251
administration of a program or programs in accordance with rules	252
adopted under division (F) of this section. Proposals must be	253
submitted not later than a date established by the director. The	254
director shall accept only those proposals that specify all of the	255
following:	256

(a) The estimated amount of the discount based on the	257
entity's previous experience and how the discount is to be	258
achieved;	259

(b) To the extent that discounts on prescription drugs are	260
to be achieved through rebates or discounts in prices that the	261
entity negotiates with drug manufacturers, the proportion of the	262
rebates or discounts to be used to do all of the following:	263

(i) Reduce any costs to cardholders;

264

(ii) Achieve discounts for cardholders;

265

(iii) Cover costs for administering the program.

266

267

(d) If fees are permitted, the fee, if any, to cardholders	268
for participation in the program and whether the fee is to be a	269
one-time or periodic fee;	270

(e) The estimated number and geographic distribution of	271
participating pharmacies and the process for establishing the	272
program's pharmacy network;	273

(f) Financial incentives to be paid to participating	274
pharmacies by the entity;	275

(g) The percentage of prescription drugs to be covered by	276
the program by major drug category;	277

(h) How the entity proposes to improve medication management	278
for cardholders;	279

(i) How cardholders and participating pharmacies will be	280
informed of the discounted price negotiated by the entity;	281

(j) How the entity will handle complaints about the program's	282
operation;	283

(k) The entity's previous experience in managing similar	284
programs;	285

(l) Any additional information requested by the director.

286

(2) The director shall contract with one or more entities to	287
administer a program or programs on the basis of the proposals	288
submitted, but may require an administrator to modify its conduct	289
of a program in accordance with rules adopted under division (F)	290
of this section. Prior to entering into a contract with an entity,	291
the director shall obtain approval of the contract from the	292
controlling board at a public hearing.	293

The director shall adopt rules specifying the period for	294
which a contract will be in effect and may terminate a contract if	295
an administrator fails to conduct a program in accordance with its	296
proposal or with any modifications required by rule. When a	297
contract period ends or a contract is terminated, the director	298
shall enter into a new contract in the manner specified in this	299
section for an original contract. Prior to making a new contract,	300
the director may modify the rules for administration of the	301
program or programs.	302

(D) The rules for administration of a program established	303
under division (C)(2) of this section may permit an administrator	304
to charge a fee for a prescription drug discount card. The fee	305
may be a one-time or periodic fee. If the rules permit a fee to	306
be charged, each entity that submits a proposal under which a fee	307
will be charged shall specify the amount of the fee and the period	308
to which the fee will apply.	309

If an administrator charges a fee for a prescription drug	310
discount card, the rules may require the administrator to issue	311
the cards. If an administrator does not charge a fee, the rules	312
may require the administrator to issue the cards or may include	313
the prescription drug discount information on golden buckeye cards	314
issued under section 173.06 of the Revised Code.	315

(E) As used in this division, "administrator" includes the	316
administrator's parent company and any subsidiary of the parent	317
company.	318

(1) No administrator shall sell any information concerning	319
a person who holds a prescription drug discount card, other than	320
aggregate information that does not identify the cardholder,	321
without the cardholder's written consent.	322

(2) Unless an administrator has the cardholder's written	323
consent, no administrator shall use any personally identifiable	324
information that it obtains concerning a cardholder through the	325
program to promote or sell a program or product offered by the	326
administrator that is not related to the administration of the	327
program. This division does not prohibit an administrator from	328
contacting cardholders concerning participation in or	329
administration of the program, including, but not limited to,	330
mailing a list of pharmacies participating in the program's	331
network.	332

(3) To the extent that a discount is achieved through rebates	333
or discounts in prices that an administrator negotiates with drug	334
manufacturers, an administrator shall use the rebates or discounts	335
to do the following:	336

(a) Reduce any costs to cardholders;

337

(b) Achieve discounts for cardholders;

338

339

(F) The director shall adopt rules in accordance with Chapter	340
119. of the Revised Code that do all of the following:	341

(1) Specify how a resident may apply to participate in any	342
one or more prescription drug discount card programs;	343

(2) Provide for the administration of each program;

344

(3) Specify the circumstances under which the director may	345
require an administrator to modify its conduct of a program;	346

(4) Specify the duration of a contract;

347

(5) Specify whether an administrator may charge a fee for a	348
card and whether an administrator is required to issue the cards;	349

(6) Require that an administrator permit any pharmacy willing	350
to comply with the administrator's terms and conditions for	351
participation in the program's network to participate in any	352
network used by the administrator for its program;	353

(7) Prohibit an administrator from requiring a pharmacy or	354
drug manufacturer to participate in the program's network as a	355
condition of participation in another network operated by the	356
administrator;	357

(8) Permit an administrator to negotiate with one or more	358
drug manufacturers for discounts in drug prices or rebates;	359

(9) Permit an administrator to receive any rebate payments	360
from drug manufacturers;	361

(10) Require that an administrator create a financial	362
incentive program for participating pharmacies through which the	363
administrator shall distribute a portion of any rebate payments	364
from drug manufacturers received under division (F)(9) of this	365
section.	366

(G) Not later than one month after the end of each	367
twelve-month period that one or more prescription drug discount	368
card programs are in operation, each administrator shall collect	369
from each of its participating pharmacies and provide to the	370
director of aging the information required by section 173.071 of	371
the Revised Code.	372

Sec. 173.062. Records identifying the recipients of golden	373
buckeye cards issued under section 173.06 of the Revised Code or	374
prescription drug discount cards issued under section 173.061 of	375
the Revised Code are not public records subject to inspection or	376
copying under section 149.43 of the Revised Code and may be	377
disclosed only at the discretion of the director of aging. The	378
director may disclose only information in records identifying the	379
recipients of golden buckeye cards or prescription drug discount	380
cards that does not contain the recipient's medical history or	381
prescription drug utilization history.	382

Sec. 173.07. Not later than four months after the end of each	383
twelve-month period that one or more prescription drug discount	384
card programs established under section 173.061 of the Revised	385
Code are in operation, the director of aging shall issue a report	386
on the operation of each program during that twelve-month period.	387

Sec. 173.071. Each report issued under section 173.07 of the	388
Revised Code shall be based on information received by the	389
director of aging from each administrator under division (G) of	390
section 173.061 of the Revised Code and specify all of the	391
following about each program:	392

(A) The number of prescription drug discount cardholders;

393

(B) The number of cardholders who used the card at least	394
once in the immediately preceding twelve-month period;	395

(C) The total cost savings to all cardholders generated by	396
the program;	397

(D) The average cost savings to a cardholder per	398
prescription;	399

(E) The source and method of cost savings under the program;

400

(F) The drugs that are discounted under the program listed	401
according to major drug category;	402

(G) For each participating pharmacy, the number of times in	403
the twelve-month period that the pharmacy's customary and usual	404
price was lower than the price offered under the prescription drug	405
discount program;	406

(H) The name of the program's administrator;

407

(I) The length of the contract between the director and the	408
program's administrator;	409

(J) The number of pharmacies participating in the program;

410

(K) Other than the cost of prescription drugs, any fees paid	411
by cardholders to participate in the program;	412

(L) Any costs incurred by the state to operate the program;

413

(M) Any costs incurred by participating pharmacies to	414
participate in the program.	415

Sec. 173.072. The director of aging shall submit each report	416
to the governor, the speaker and minority leader of the house of	417
representatives, the president and minority leader of the senate,	418
and the chairpersons and ranking minority members of the	419
committees of the house of representatives and senate that have	420
primary concern with matters pertaining to health care.	421

Sec. 173.40. There is hereby created a component of the	422
medicaid program established under Chapter 5111. of the Revised	423
Code to be known as the preadmission screening system providing	424
options and resources today program, or PASSPORT. The PASSPORT	425
program shall provide home and community-based services as an	426
alternative to nursing facility placement for aged and disabled	427
medicaid recipients. The program shall be operated pursuant to a	428
home and community-based waiver granted by the United States	429
secretary of health and human services under section 1915 of the	430
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 1396n, as	431
amended. The department of aging shall administer the program	432
through ~~an interagency agreement~~a contract entered into with the	433
department of job and family services under section ~~5111.86~~	434
5111.91 of the Revised Code. The directors of aging and job and	435
family services shall adopt rules in accordance with Chapter 119.	436
of the Revised Code to implement the program.	437

Sec. 2913.40. (A) As used in this section:

438

(1) "Statement or representation" means any oral, written,	439
electronic, electronic impulse, or magnetic communication that is	440
used to identify an item of goods or a service for which	441
reimbursement may be made under the medical assistance program or	442
that states income and expense and is or may be used to determine	443
a rate of reimbursement under the medical assistance program.	444

(2) "Medical assistance program" means the program	445
established by the department of job and family services to	446
provide medical assistance under section 5111.01 of the Revised	447
Code and the medicaid program of Title XIX of the "Social Security	448
Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as amended.	449

(3) "Provider" means any person who has signed a provider	450
agreement with the department of job and family services to	451
provide goods or services pursuant to the medical assistance	452
program or any person who has signed an agreement with a party to	453
such a provider agreement under which the person agrees to provide	454
goods or services that are reimbursable under the medical	455
assistance program.	456

(4) "Provider agreement" means an oral or written agreement	457
between the department of job and family services and a person in	458
which the person agrees to provide goods or services under the	459
medical assistance program.	460

(5) "Recipient" means any individual who receives goods or	461
services from a provider under the medical assistance program.	462

(6) "Records" means any medical, professional, financial, or	463
business records relating to the treatment or care of any	464
recipient, to goods or services provided to any recipient, or to	465
rates paid for goods or services provided to any recipient and any	466
records that are required by the rules of the director of job and	467
family services to be kept for the medical assistance program.	468

(B) No person shall knowingly make or cause to be made a	469
false or misleading statement or representation for use in	470
obtaining reimbursement from the medical assistance program.	471

(C) No person, with purpose to commit fraud or knowing that	472
the person is facilitating a fraud, shall do either of the	473
following:	474

(1) Contrary to the terms of the person's provider	475
agreement, charge, solicit, accept, or receive for goods or	476
services that the person provides under the medical assistance	477
program any property, money, or other consideration in addition to	478
the amount of reimbursement under the medical assistance program	479
and the person's provider agreement for the goods or services and	480
any deductibles or co-payments authorized by rules adopted under	481
section ~~5111.02~~5111.0112 of the Revised Code or by any rules	482
adopted pursuant to that section.	483

(2) Solicit, offer, or receive any remuneration, other than	484
any deductibles or co-payments authorized by rules adopted under	485
section ~~5111.02~~5111.0112 of the Revised Code or by any rules	486
adopted pursuant to that section, in cash or in kind, including,	487
but not limited to, a kickback or rebate, in connection with the	488
furnishing of goods or services for which whole or partial	489
reimbursement is or may be made under the medical assistance	490
program.	491

(D) No person, having submitted a claim for or provided	492
goods or services under the medical assistance program, shall do	493
either of the following for a period of at least six years after a	494
reimbursement pursuant to that claim, or a reimbursement for those	495
goods or services, is received under the medical assistance	496
program:	497

(1) Knowingly alter, falsify, destroy, conceal, or remove	498
any records that are necessary to fully disclose the nature of all	499
goods or services for which the claim was submitted, or for which	500
reimbursement was received, by the person;	501

(2) Knowingly alter, falsify, destroy, conceal, or remove	502
any records that are necessary to disclose fully all income and	503
expenditures upon which rates of reimbursements were based for the	504
person.	505

(E) Whoever violates this section is guilty of medicaid	506
fraud. Except as otherwise provided in this division, medicaid	507
fraud is a misdemeanor of the first degree. If the value of	508
property, services, or funds obtained in violation of this section	509
is five hundred dollars or more and is less than five thousand	510
dollars, medicaid fraud is a felony of the fifth degree. If the	511
value of property, services, or funds obtained in violation of	512
this section is five thousand dollars or more and is less than one	513
hundred thousand dollars, medicaid fraud is a felony of the fourth	514
degree. If the value of the property, services, or funds obtained	515
in violation of this section is one hundred thousand dollars or	516
more, medicaid fraud is a felony of the third degree.	517

(F) Upon application of the governmental agency, office, or	518
other entity that conducted the investigation and prosecution in a	519
case under this section, the court shall order any person who is	520
convicted of a violation of this section for receiving any	521
reimbursement for furnishing goods or services under the medical	522
assistance program to which the person is not entitled to pay to	523
the applicant its cost of investigating and prosecuting the case.	524
The costs of investigation and prosecution that a defendant is	525
ordered to pay pursuant to this division shall be in addition to	526
any other penalties for the receipt of that reimbursement that are	527
provided in this section, section 5111.03 of the Revised Code, or	528
any other provision of law.	529

(G) The provisions of this section are not intended to be	530
exclusive remedies and do not preclude the use of any other	531
criminal or civil remedy for any act that is in violation of this	532
section.	533

Sec. 3721.51. The department of job and family services	534
shall:	535

(A) For the purposes specified in section 3721.56 of the	536
Revised Code, determine an annual franchise permit fee on each	537
nursing home in an amount equal to three dollars and thirty cents	538
for fiscal ~~years~~year 2002 ~~and 2003~~, four dollars and thirty cents	539
for fiscal years 2003 through 2005, and one dollar for each fiscal	540
year thereafter, multiplied by the product of the following:	541

(1) The number of beds licensed as nursing home beds, plus	542
any other beds certified as skilled nursing facility beds under	543
Title XVIII or nursing facility beds under Title XIX of the	544
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as	545
amended, on July 1, 1993, and, for each subsequent year, the first	546
day of May of the calendar year in which the fee is determined	547
pursuant to division (A) of section 3721.53 of the Revised Code;	548

(2) The number of days in fiscal year 1994 and, for each	549
subsequent year, the number of days in the fiscal year beginning	550
on the first day of July of the calendar year in which the fee is	551
determined pursuant to division (A) of section 3721.53 of the	552
Revised Code.	553

(B) For the purposes specified in section 3721.56 of the	554
Revised Code, determine an annual franchise permit fee on each	555
hospital in an amount equal to three dollars and thirty cents for	556
fiscal ~~years~~year 2002 ~~and 2003~~, four dollars and thirty cents for	557
fiscal years 2003 through 2005, and one dollar for each fiscal	558
year thereafter, multiplied by the product of the following:	559

(1) The number of beds registered pursuant to section	560
3701.07 of the Revised Code as skilled nursing facility beds or	561
long-term care beds, plus any other beds licensed as nursing home	562
beds under section 3721.02 or 3721.09 of the Revised Code, on July	563
1, 1993, and, for each subsequent year, the first day of May of	564
the calendar year in which the fee is determined pursuant to	565
division (A) of section 3721.53 of the Revised Code;	566

(2) The number of days in fiscal year 1994 and, for each	567
subsequent year, the number of days in the fiscal year beginning	568
on the first day of July of the calendar year in which the fee is	569
determined pursuant to division (A) of section 3721.53 of the	570
Revised Code.	571

If the United States ~~health care financing administration~~	572
centers for medicare and medicaid services determines that the	573
franchise permit fee established by sections 3721.50 ~~through~~to	574
3721.58 of the Revised Code would be an impermissible health care	575
related tax under section 1903(w) of the "Social Security Act," 49	576
Stat. 620 (1935), 42 U.S.C. 1396b(w), as amended, the department	577
of job and family services shall take all necessary actions to	578
cease implementation of those sections in accordance with rules	579
adopted under section 3721.58 of the Revised Code.	580

Sec. 3721.56. (A) Thirty and three-tenths per cent of all	581
payments and penalties paid by nursing homes and hospitals under	582
sections 3721.53 and 3721.54 of the Revised Code for fiscal ~~years~~	583
year 2002 ~~and 2003~~, twenty-three and twenty-six-hundredths per	584
cent of such payments and penalties paid for fiscal years 2003	585
through 2005, and all such payments and penalties paid for	586
subsequent fiscal years, shall be deposited into the "home and	587
community-based services for the aged fund," which is hereby	588
created in the state treasury. The departments of job and family	589
services and aging shall use the moneys in the fund to fund the	590
following in accordance with rules adopted under section 3721.58	591
of the Revised Code:	592

(1) The medical assistance program established under Chapter	593
~~511.~~5111. of the Revised Code;	594

(2) The PASSPORT program established under section 173.40 of	595
the Revised Code;	596

(3) The residential state supplement program established	597
under section 173.35 of the Revised Code.	598

(B) Sixty-nine and seven-tenths per cent of all payments and	599
penalties paid by nursing homes and hospitals under sections	600
3721.53 and 3721.54 of the Revised Code for fiscal ~~years~~year 2002	601
~~and~~, and seventy-six and seventy-four-hundredths per cent of such	602
payments and penalties paid for fiscal years 2003 through 2005,	603
shall be deposited into the nursing facility stabilization fund,	604
which is hereby created in the state treasury. The department of	605
job and family services shall use the money in the fund in the	606
manner provided by Am. Sub. H.B. 94 and Am. Sub. S.B. 261 of the	607
124th general assembly.	608

Sec. 5101.11. This section does not apply to contracts	609
entered into under section 5111.022, 5111.90, or 5111.91 of the	610
Revised Code.	611

(A) As used in this section:

612

(1) "Entity" includes an agency, board, commission, or	613
department of the state or a political subdivision of the state; a	614
private, nonprofit entity; a school district; a private school; or	615
a public or private institution of higher education.	616

(2) "Federal financial participation" means the federal	617
government's share of expenditures made by an entity in	618
implementing a program administered by the department of job and	619
family services.	620

(B) At the request of any public entity having authority to	621
implement a program administered by the department of job and	622
family services or any private entity under contract with a public	623
entity to implement a program administered by the department, the	624
department may seek to obtain federal financial participation for	625
costs incurred by the entity. Federal financial participation may	626
be sought from programs operated pursuant to Title IV-A, Title	627
IV-E, and Title XIX of the "Social Security Act," 49 Stat. 620	628
(1935), 42 U.S.C. 301, as amended; the "Food Stamp Act of 1964,"	629
78 Stat. 703, 7 U.S.C. 2011, as amended; and any other statute or	630
regulation under which federal financial participation may be	631
available, except that federal financial participation may be	632
sought only for expenditures made with funds for which federal	633
financial participation is available under federal law.	634

(C) All funds collected by the department of job and family	635
services pursuant to division (B) of this section shall be	636
distributed to the entities that incurred the costs, except for	637
any amounts retained by the department pursuant to division (D)(3)	638
of this section.	639

(D) In distributing federal financial participation pursuant	640
to this section, the department may either enter into an agreement	641
with the entity that is to receive the funds or distribute the	642
funds in accordance with rules adopted under division (F) of this	643
section. If the department decides to enter into an agreement to	644
distribute the funds, the agreement may include terms that do any	645
of the following:	646

(1) Provide for the whole or partial reimbursement of any	647
cost incurred by the entity in implementing the program;	648

(2) In the event that federal financial participation is	649
disallowed or otherwise unavailable for any expenditure, require	650
the department of job and family services or the entity, whichever	651
party caused the disallowance or unavailability of federal	652
financial participation, to assume responsibility for the	653
expenditures;	654

(3) Permit the department to retain not more than five per	655
cent of the amount of the federal financial participation to be	656
distributed to the entity;	657

(4) Require the public entity to certify the availability of	658
sufficient unencumbered funds to match the federal financial	659
participation it receives under this section;	660

(5) Establish the length of the agreement, which may be for	661
a fixed or a continuing period of time;	662

(6) Establish any other requirements determined by the	663
department to be necessary for the efficient administration of the	664
agreement.	665

(E) An entity that receives federal financial participation	666
pursuant to this section for a program aiding children and their	667
families shall establish a process for collaborative planning with	668
the department of job and family services for the use of the funds	669
to improve and expand the program.	670

(F) The director of job and family services shall adopt	671
rules as necessary to implement this section, including rules for	672
the distribution of federal financial participation pursuant to	673
this section. The rules shall be adopted in accordance with	674
Chapter 119. of the Revised Code. The director may adopt or amend	675
any statewide plan required by the federal government for a	676
program administered by the department, as necessary to implement	677
this section.	678

(G) Federal financial participation received pursuant to	679
this section shall not be included in any calculation made under	680
section 5101.16 or 5101.161 of the Revised Code.	681

Sec. 5111.0112. The director of job and family services shall	682
examine instituting a copayment program under medicaid. As part	683
of the examination, the director shall determine which groups of	684
medicaid recipients may be subjected to a copayment requirement	685
under federal statutes and regulations and which of those groups	686
are appropriate for a copayment program designed to reduce	687
inappropriate and excessive use of medical goods and services. If,	688
on completion of the examination, the director determines that it	689
is feasible to institute such a copayment program, the director	690
may seek approval from the United States secretary of health and	691
human services to institute the copayment program. If necessary,	692
the director may seek approval by applying for a waiver of federal	693
statutes and regulations. If such approval is obtained, the	694
director shall adopt rules in accordance with Chapter 119. of the	695
Revised Code governing the copayment program.	696

Sec. 5111.02. (A) Under the medical assistance program:

697

(1) ~~Reimbursement~~Except as otherwise permitted by federal	698
statute or regulation and at the department's discretion,	699
reimbursement by the department of job and family services to a	700
medical provider for any medical service rendered under the	701
program shall not exceed the authorized reimbursement level for	702
the same service under the medicare program established under	703
Title XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42	704
U.S.C.A. 301, as amended.	705

(2) Reimbursement for freestanding medical laboratory	706
charges shall not exceed the customary and usual fee for	707
laboratory profiles.	708

(3) The department may deduct from payments for services	709
rendered by a medicaid provider under the medical assistance	710
program any amounts the provider owes the state as the result of	711
incorrect medical assistance payments the department has made to	712
the provider.	713

(4) The department may conduct final fiscal audits in	714
accordance with the applicable requirements set forth in federal	715
laws and regulations and determine any amounts the provider may	716
owe the state. When conducting final fiscal audits, the	717
department shall consider generally accepted auditing standards,	718
which include the use of statistical sampling.	719

(5) ~~To the maximum extent that federal laws and regulations~~	720
~~permit the implementation of such a policy, the department may~~	721
~~institute a copayment program for all services provided under the~~	722
~~medical assistance program. The program shall be administered in~~	723
~~accordance with the applicable requirements set forth in federal~~	724
~~laws and regulations.~~	725

~~(6)~~ The number of days of inpatient hospital care for which	726
reimbursement is made on behalf of a recipient of medical	727
assistance to a hospital that is not paid under a	728
diagnostic-related-group prospective payment system shall not	729
exceed thirty days during a period beginning on the day of the	730
recipient's admission to the hospital and ending sixty days after	731
the termination of that hospital stay, except that the department	732
may make exceptions to this limitation. The limitation does not	733
apply to children participating in the program for medically	734
handicapped children established under section 3701.023 of the	735
Revised Code.	736

(B) The director of job and family services may adopt,	737
amend, or rescind rules under Chapter 119. of the Revised Code	738
establishing the amount, duration, and scope of medical services	739
to be included in the medical assistance program. Such rules	740
shall establish the conditions under which services are covered	741
and reimbursed, the method of reimbursement applicable to each	742
covered service, and the amount of reimbursement or, in lieu of	743
such amounts, methods by which such amounts are to be determined	744
for each covered service. Any rules that pertain to nursing	745
facilities or intermediate care facilities for the mentally	746
retarded shall be consistent with sections 5111.20 to 5111.33 of	747
the Revised Code.	748

(C) No health insuring corporation that has a contract to	749
provide health care services to recipients of medical assistance	750
shall restrict the availability to its enrollees of any	751
prescription drugs included in the Ohio medicaid drug formulary as	752
established under rules adopted by the director.	753

(D) The division of any reimbursement between a	754
collaborating physician or podiatrist and a clinical nurse	755
specialist, certified nurse-midwife, or certified nurse	756
practitioner for services performed by the nurse shall be	757
determined and agreed on by the nurse and collaborating physician	758
or podiatrist. In no case shall reimbursement exceed the payment	759
that the physician or podiatrist would have received had the	760
physician or podiatrist provided the entire service.	761

Sec. 5111.082. The director of job and family services, in	762
rules adopted under section 5111.02 of the Revised Code, may	763
establish and implement a supplemental drug rebate program under	764
which drug manufacturers may be required to provide the department	765
of job and family services a supplemental rebate as a condition of	766
having the drug manufacturers' drug products covered by the	767
medicaid program without prior approval. If necessary, the	768
director may apply to the United States secretary of health and	769
human services for a waiver of federal statutes and regulations to	770
establish the supplemental drug rebate program. A supplemental	771
rebate may be, at the director's discretion, one or more cash	772
payments by a drug manufacturer to the department or one or more	773
services a drug manufacturer performs that are guaranteed to	774
produce savings to the medicaid program within one year of the	775
date the director enters into a supplemental drug rebate contract	776
with the drug manufacturer or other date negotiated by the	777
director and drug manufacturer. Examples of services drug	778
manufacturers may perform include disease management, drug product	779
donations, drug utilization control, prescriber and beneficiary	780
counseling and education, and fraud and abuse initiatives.	781

If the director establishes a supplemental drug rebate	782
program, the director shall consult with drug manufacturers	783
regarding the establishment and implementation of the program.	784

If the director establishes a supplemental drug rebate	785
program, the director shall exempt from the program all of a drug	786
manufacturer's drug products that have been approved by the United	787
States food and drug administration for the treatment of either of	788
the following:	789

(A) Mental illness, as defined in section 5122.01 of the	790
Revised Code, including schizophrenia, major depressive disorder,	791
and bipolar disorder;	792

(B) HIV or AIDS, both as defined in section 3701.24 of the	793
Revised Code.	794

Sec. 5111.091. Every three months, the director of job and	795
family services shall submit a report to the president and	796
minority leader of the senate and speaker and minority leader of	797
the house of representatives on the establishment and	798
implementation of programs designed to control the increase of the	799
cost of the medicaid program.	800

Sec. 5111.871. The department of job and family services	801
shall enter into ~~an interagency agreement~~a contract with the	802
department of mental retardation and developmental disabilities	803
under section ~~5111.86~~5111.91 of the Revised Code with regard to	804
the component of the medicaid program established by the	805
department of job and family services under one or more waivers	806
from the United States secretary of health and human services	807
pursuant to section 1915 of the "Social Security Act," 49 Stat.	808
620 (1935), 42 U.S.C.A. 1396n, as amended, to provide eligible	809
medicaid recipients with home and community-based services as an	810
alternative to placement in an intermediate care facility for the	811
mentally retarded. The ~~agreement~~contract shall provide for the	812
department of mental retardation and developmental disabilities to	813
administer the component in accordance with the terms of the	814
waiver. The directors of job and family services and mental	815
retardation and developmental disabilities shall adopt rules in	816
accordance with Chapter 119. of the Revised Code governing the	817
component.	818

If the department of mental retardation and developmental	819
disabilities or the department of job and family services denies	820
an individual's application for home and community-based services	821
provided under this medicaid component, the department that denied	822
the services shall give timely notice to the individual that the	823
individual may request a hearing under section 5101.35 of the	824
Revised Code.	825

The departments of mental retardation and developmental	826
disabilities and job and family services may approve, reduce,	827
deny, or terminate a service included in the individualized	828
service plan developed for a medicaid recipient eligible for home	829
and community-based services provided under this medicaid	830
component. The departments shall consider the recommendations a	831
county board of mental retardation and developmental disabilities	832
makes under division (A)(1)(c) of section 5126.055 of the Revised	833
Code. If either department approves, reduces, denies, or	834
terminates a service, that department shall give timely notice to	835
the medicaid recipient that the recipient may request a hearing	836
under section 5101.35 of the Revised Code.	837

If supported living or residential services, as defined in	838
section 5126.01 of the Revised Code, are to be provided under this	839
component, any person or government entity with a current, valid	840
medicaid provider agreement and a current, valid license under	841
section 5123.19 or certificate under section 5123.045 or 5126.431	842
of the Revised Code may provide the services.	843

~~Sec. 5111.10.~~ Sec. 5111.90. To(A) As used in sections 5111.90 to	844
5111.93 of the Revised Code:	845

(1) "Political subdivision" means a municipal corporation,	846
township, county, school district, or other body corporate and	847
politic responsible for governmental activities only in a	848
geographical area smaller than that of the state.	849

(2) "State agency" means every organized body, office, or	850
agency, other than the department of job and family services,	851
established by the laws of the state for the exercise of any	852
function of state government.	853

(B) To the extent permitted by Title XIX of the "Social	854
Security Act," 4979 Stat. ~~620~~286 (~~1935~~1965), 42 U.S.C.A. ~~301~~	855
1396, as amended, and regulations adopted under that ~~act~~title,	856
the department of job and family services may enter into	857
~~agreements~~contracts with political subdivisions to use funds of	858
the political subdivision to pay the nonfederal share of	859
expenditures under the ~~medical assistance~~medicaid program. The	860
determination and provision of federal financial reimbursement to	861
a subdivision entering into ~~an agreement~~a contract under this	862
section shall be determined by the department, subject to section	863
5111.92 of the Revised Code, approval by the United States	864
secretary of health and human services, and the availability of	865
federal financial participation.	866

~~Sec. 5111.86.~~ Sec. 5111.91. The department of job and family	867
services may enter into ~~interagency agreements~~contracts with one	868
or more other state agencies or political subdivisions to have the	869
state agency or political subdivision administer one or more	870
components of the medicaid program, or one or more aspects of a	871
component, under the department's supervision. A state agency or	872
political subdivision that enters into such ~~an interagency~~	873
~~agreement~~a contract shall comply with the terms of the contract	874
and any rules the director of job and family services has adopted	875
governing the component, or aspect of the component, that the	876
state agency or political subdivision is to administer, including	877
any rules establishing review, audit, and corrective action plan	878
requirements. A contract with a state agency shall be in the form	879
of an interagency agreement.	880

A state agency or political subdivision that enters into an	881
~~interagency agreement~~a contract with the department under this	882
section shall reimburse the department for the nonfederal share of	883
the cost to the department of performing, or contracting for the	884
performance of, a fiscal audit of the component of the medicaid	885
program, or aspect of the component, that the state agency or	886
political subdivision administers if rules governing the	887
component, or aspect of the component, require that a fiscal audit	888
be conducted.	889

There is hereby created in the state treasury the medicaid	890
administrative reimbursement fund. The department shall use money	891
in the fund to pay for the nonfederal share of the cost of a	892
fiscal audit for which a state agency or political subdivision is	893
required by this section to reimburse the department. The	894
department shall deposit the reimbursements into the fund.	895

Sec. 5111.92. (A)(1) Except as provided in division (B)	896
of this section, if a state agency or political subdivision	897
administers one or more components of the medicaid program that	898
the United States department of health and human services	899
approved, and for which federal financial participation was	900
initially obtained, prior to January 1, 2002, or administers one	901
or more aspects of such a component, the department of job and	902
family services may retain or collect not more than ten per cent	903
of the federal financial participation the state agency or	904
political subdivision obtains through an approved, administrative	905
claim regarding the component or aspect of the component. If the	906
department retains or collects a percentage of such federal	907
financial participation, the percentage the department retains or	908
collects shall be specified in a contract the department enters	909
into with the state agency or political subdivision under section	910
5111.91 of the Revised Code.	911

(2) Except as provided in division (B) of this section, if	912
a state agency or political subdivision administers one or more	913
components of the medicaid program that the United States	914
department of health and human services approved on or after	915
January 1, 2002, or administers one or more aspects of such a	916
component, the department of job and family services shall retain	917
or collect not less than three and not more than ten per cent of	918
the federal financial participation the state agency or political	919
subdivision obtains through an approved, administrative claim	920
regarding the component or aspect of the component. The	921
percentage the department retains or collects shall be specified	922
in a contract the department enters into with the state agency or	923
political subdivision under section 5111.91 of the Revised Code.	924

(B) The department of job and family services may retain or	925
collect a percentage of federal financial participation under	926
divisions (A)(1) and (2) of this section only to the extent	927
permitted by federal statutes and regulations.	928

(C) All amounts the department retains or collects under	929
this section shall be deposited into the health care services	930
administration fund created under section 5111.94 of the Revised	931
Code.	932

Sec. 5111.93. The department of job and family services	933
may retain or collect a percentage of the federal financial	934
participation included in a supplemental medicaid payment to one	935
or more medicaid providers owned or operated by a state agency or	936
political subdivision that brings the payment to such provider or	937
providers to the upper payment limit established by 42 C.F.R.	938
447.272. If the department retains or collects a percentage of	939
that federal financial participation, the department shall adopt a	940
rule under Chapter 119. of the Revised Code specifying the	941
percentage the department is to retain or collect. All amounts the	942
department retains or collects under this section shall be	943
deposited into the health care services administration fund	944
created under section 5111.94 of the Revised Code.	945

Sec. 5111.94. (A) As used in this section, "vendor	946
offset" means a reduction of a medicaid payment to a medicaid	947
provider to correct a previous, incorrect medicaid payment to that	948
provider.	949

(B) There is hereby created in the state treasury the	950
health care services administration fund. Except as provided in	951
division (C) of this section, all the following shall be	952
deposited into the fund:	953

(1) Amounts deposited into the fund pursuant to sections	954
5111.92 and 5111.93 of the Revised Code;	955

(2) The amount of the state share of all money the	956
department of job and family services, in fiscal year 2003 and	957
each fiscal year thereafter, recovers pursuant to a tort action	958
under the department's right of recovery under section 5101.58 of	959
the Revised Code that exceeds the state share of all money the	960
department, in fiscal year 2002, recovers pursuant to a tort	961
action under that right of recovery;	962

(3) Subject to division (D) of this section, the amount of	963
the state share of all money the department of job and family	964
services, in fiscal year 2003 and each fiscal year thereafter,	965
recovers through audits of medicaid providers that exceeds the	966
state share of all money the department, in fiscal year 2002,	967
recovers through such audits;	968

(4) Until October 16, 2003, amounts from assessments on	969
hospitals under section 5112.06 of the Revised Code and	970
intergovernmental transfers by governmental hospitals under	971
section 5112.07 of the Revised Code that are deposited into the	972
fund in accordance with the law.	973

(C) No funds shall be deposited into the health care	974
services administration fund in violation of federal statutes or	975
regulations.	976

(D) In determining under division (B)(3) of this section	977
the amount of money the department, in a fiscal year, recovers	978
through audits of medicaid providers, the amount recovered in the	979
form of vendor offset shall be excluded.	980

(E) The director of job and family services shall use funds	981
available in the health care services administration fund to pay	982
for costs associated with the administration of the medicaid	983
program.	984

Sec. 5112.01. As used in sections 5112.03 to 5112.21 of the	985
Revised Code:	986

(A)(1) "Hospital" means a nonfederal hospital to which either	987
of the following applies:	988

(a) The hospital is registered under section 3701.07 of the	989
Revised Code as a general medical and surgical hospital or a	990
pediatric general hospital, and provides inpatient hospital	991
services, as defined in 42 C.F.R. 440.10;	992

(b) The hospital is recognized under the medicare program	993
established by Title XVIII of the "Social Security Act," 49 Stat.	994
620 (1935), 42 U.S.C.A. 301, as amended, as a cancer hospital and	995
is exempt from the medicare prospective payment system.	996

"Hospital" does not include a hospital operated by a health	997
insuring corporation that has been issued a certificate of	998
authority under section 1751.05 of the Revised Code or a hospital	999
that does not charge patients for services.	1000

(2) "Disproportionate share hospital" means a hospital that	1001
meets the definition of a disproportionate share hospital in rules	1002
adopted under section 5112.03 of the Revised Code.	1003

(B) "Bad debt," "charity care," "courtesy care," and	1004
"contractual allowances" have the same meanings given these terms	1005
in regulations adopted under Title XVIII of the "Social Security	1006
Act."	1007

(C) "Cost reporting period" means the twelve-month period	1008
used by a hospital in reporting costs for purposes of Title XVIII	1009
of the "Social Security Act."	1010

(D) "Governmental hospital" means a county hospital with more	1011
than five hundred registered beds or a state-owned and -operated	1012
hospital with more than five hundred registered beds.	1013

(E) "Indigent care pool" means the sum of the following:

1014

(1) The total of assessments to be paid in a program year by	1015
all hospitals under section 5112.06 of the Revised Code, less the	1016
assessments deposited into the legislative budget services fund	1017
under section 5112.19 of the Revised Code and into the health care	1018
services administration fund created under section 5111.94 of the	1019
Revised Code;	1020

(2) The total amount of intergovernmental transfers required	1021
to be made in the same program year by governmental hospitals	1022
under section 5112.07 of the Revised Code, less the amount of	1023
transfers deposited into the legislative budget services fund	1024
under section 5112.19 of the Revised Code and into the health care	1025
services administration fund created under section 5111.94 of the	1026
Revised Code;	1027

(3) The total amount of federal matching funds that will be	1028
made available in the same program year as a result of funds	1029
distributed by the department of job and family services to	1030
hospitals under section 5112.08 of the Revised Code.	1031

(F) "Intergovernmental transfer" means any transfer of money	1032
by a governmental hospital under section 5112.07 of the Revised	1033
Code.	1034

(G) "Medical assistance program" means the program of medical	1035
assistance established under section 5111.01 of the Revised Code	1036
and Title XIX of the "Social Security Act."	1037

(H) "Program year" means a period beginning the first day of	1038
October, or a later date designated in rules adopted under section	1039
5112.03 of the Revised Code, and ending the thirtieth day of	1040
September, or an earlier date designated in rules adopted under	1041
that section.	1042

(I) "Registered beds" means the total number of hospital beds	1043
registered with the department of health, as reported in the most	1044
recent "directory of registered hospitals" published by the	1045
department of health.	1046

(J) "Total facility costs" means the total costs for all	1047
services rendered to all patients, including the direct, indirect,	1048
and overhead cost to the hospital of all services, supplies,	1049
equipment, and capital related to the care of patients, regardless	1050
of whether patients are enrolled in a health insuring corporation,	1051
excluding costs associated with providing skilled nursing services	1052
in distinct-part nursing facility units, as shown on the	1053
hospital's cost report filed under section 5112.04 of the Revised	1054
Code. Effective October 1, 1993, if rules adopted under section	1055
5112.03 of the Revised Code so provide, "total facility costs" may	1056
exclude costs associated with providing care to recipients of any	1057
of the governmental programs listed in division (B) of that	1058
section.	1059

(K) "Uncompensated care" means bad debt and charity care.

1060

Sec. 5112.06. (A) For the purpose of distributing funds to	1061
hospitals under the medical assistance program pursuant to	1062
sections 5112.01 to 5112.21 of the Revised Code and depositing	1063
funds into the legislative budget services fund under section	1064
5112.19 of the Revised Code and into the health care services	1065
administration fund created under section 5111.94 of the Revised	1066
Code, there is hereby imposed an assessment on all hospitals. Each	1067
hospital's assessment shall be based on total facility costs. All	1068
hospitals shall be assessed according to the rate or rates	1069
established each program year by the department of job and family	1070
services in rules adopted under section 5112.03 of the Revised	1071
Code. The department shall assess all hospitals uniformly and in	1072
a manner consistent with federal statutes and regulations. During	1073
any program year, the department shall not assess any hospital	1074
more than two per cent of the hospital's total facility costs.	1075

The department shall establish an assessment rate or rates	1076
each program year that will do both of the following:	1077

(1) Yield funds that, when combined with intergovernmental	1078
transfers and federal matching funds, will produce a program of	1079
sufficient size to pay a substantial portion of the indigent care	1080
provided by hospitals;	1081

(2) Yield funds that, when combined with intergovernmental	1082
transfers and federal matching funds, will produce amounts for	1083
distribution to disproportionate share hospitals that do not	1084
exceed, in the aggregate, the limits prescribed by the United	1085
States health care financing administration under subsection (f)	1086
of section 1923 of the "Social Security Act," 49 Stat. 620 (1935),	1087
42 U.S.C.A. 1396r-4(f), as amended.	1088

(B)(1) Except as provided in division (B)(3) of this	1089
section, each hospital shall pay its assessment in periodic	1090
installments in accordance with a schedule established by the	1091
director of job and family services in rules adopted under section	1092
5112.03 of the Revised Code.	1093

(2) The installments shall be equal in amount, unless either	1094
of the following applies:	1095

(a) The department makes adjustments during a program year	1096
under division (D) of section 5112.09 of the Revised Code in the	1097
total amount of hospitals' assessments;	1098

(b) The director of job and family services determines that	1099
adjustments in the amounts of installments are necessary for the	1100
administration of sections 5112.01 to 5112.21 of the Revised Code	1101
and that unequal installments will not create cash flow	1102
difficulties for hospitals.	1103

(3) The director may adopt rules under section 5112.03 of	1104
the Revised Code establishing alternate schedules for hospitals to	1105
pay assessments under this section in order to reduce hospitals'	1106
cash flow difficulties.	1107

Sec. 5112.07. (A) The department of job and family services	1108
may require governmental hospitals to make intergovernmental	1109
transfers each program year for the purpose of distributing funds	1110
to hospitals under the medical assistance program pursuant to	1111
sections 5112.01 to 5112.21 of the Revised Code and depositing	1112
funds into the legislative budget services fund under section	1113
5112.19 of the Revised Code and into the health care services	1114
administration fund created under section 5111.94 of the Revised	1115
Code. The department shall not require transfers in an amount	1116
that, when combined with hospital assessments paid under section	1117
5112.06 of the Revised Code and federal matching funds, produce	1118
amounts for distribution to disproportionate share hospitals that,	1119
in the aggregate, exceed limits prescribed by the United States	1120
health care financing administration under subsection (f) of	1121
section 1923 of the "Social Security Act," 49 Stat. 620 (1935), 42	1122
U.S.C.A. 1396r-4(f), as amended.	1123

(B) Before or during each program year, the department shall	1124
notify each governmental hospital of the amount of the	1125
intergovernmental transfer it is required to make during the	1126
program year. Each governmental hospital shall make	1127
intergovernmental transfers as required by the department under	1128
this section in periodic installments, executed by electronic fund	1129
transfer, in accordance with a schedule established in rules	1130
adopted under section 5112.03 of the Revised Code.	1131

Sec. 5112.11. ~~The~~Except for moneys deposited into the	1132
legislative budget services fund under section 5112.19 of the	1133
Revised Code and the health care services administration fund	1134
created under section 5111.94 of the Revised Code, the department	1135
of job and family services shall not use money paid to the	1136
department under sections 5112.06 and 5112.07 of the Revised Code	1137
or money that the department pays to hospitals under section	1138
5112.08 of the Revised Code to replace any funds appropriated by	1139
the general assembly for the medical assistance program.	1140

Sec. 5123.041. (A) As used in this section, "habilitation	1141
center" means a habilitation center that provides habilitation	1142
center services under section 5111.041 of the Revised Code.	1143

(B) The department of mental retardation and developmental	1144
disabilities shall do all of the following pursuant to an	1145
~~interagency agreement~~a contract with the department of job and	1146
family services entered into under section ~~5111.86~~5111.91 of the	1147
Revised Code:	1148

(1) Certify habilitation centers that meet the certification	1149
requirements established by rules adopted by the director of job	1150
and family services under section 5111.041 of the Revised Code;	1151

(2) Accept and process medicaid reimbursement claims from	1152
habilitation centers providing habilitation center services to	1153
medicaid recipients under section 5111.041 of the Revised Code;	1154

(3) With medicaid funds provided to the department from the	1155
department of job and family services, pay the medicaid	1156
reimbursement claims accepted and processed under division (B)(2)	1157
of this section;	1158

(4) Perform the other duties included in the interagency	1159
agreement.	1160

(C) The director of mental retardation and developmental	1161
disabilities shall adopt rules in accordance with Chapter 119. of	1162
the Revised Code that do all of the following:	1163

(1) Establish procedures for certification of habilitation	1164
centers;	1165

(2) Establish the fee that may be assessed under division (D)	1166
of this section;	1167

(3) Specify how the department of mental retardation and	1168
developmental disabilities will perform its duties under this	1169
section.	1170

(D) The department of mental retardation and developmental	1171
disabilities may assess the fee established by rule under division	1172
(C)(2) of this section for performing its duties under this	1173
section. The fee may be retained from any payment the department	1174
makes under division (B)(3) of this section.	1175

Sec. 5126.053. (A) As used in this section, "effective tax	1176
rate" ~~has the same meaning as in section 5126.16 of the Revised~~	1177
~~Code~~of a county board of mental retardation and developmental	1178
disabilities means the quotient obtained by dividing (1) the	1179
total taxes charged and payable for a tax year from a tax levied	1180
pursuant to division (L) of section 5705.19 or section 5705.191 or	1181
5705.222 of the Revised Code, after the reduction prescribed by	1182
section 319.301 of the Revised Code but before the reduction	1183
prescribed by section 319.302 or 323.152 of the Revised Code, by	1184
(2) the county board's taxable value for that tax year, as	1185
reported under division (B)(1) of section 5126.18 of the Revised	1186
Code.	1187

(B) Notwithstanding sections 5126.12 and 5126.15 of the	1188
Revised Code with regard to the distribution of state subsidies to	1189
county boards of mental retardation and developmental	1190
disabilities, the department of mental retardation and	1191
developmental disabilities shall, except as provided in division	1192
(D) of this section, reduce the funds provided under those	1193
sections to a county board in each year that the board, on the	1194
first day of January of that year, has an effective tax rate of	1195
less than one and one-half mills for general operations for	1196
programs under which the board provides or arranges the following:	1197

(1) Early childhood services pursuant to section 5126.05 of	1198
the Revised Code for children under age three;	1199

(2) Adult services pursuant to section 5126.05 and division	1200
(B) of section 5126.051 of the Revised Code for individuals age	1201
sixteen or older;	1202

(3) Service and support administration pursuant to section	1203
5126.15 of the Revised Code.	1204

(C) If a county board is subject to the reduction required	1205
by this section, payments to the county board under sections	1206
5126.12 and 5126.15 of the Revised Code shall be made in the same	1207
percentage that the board's effective tax rate is of one and	1208
one-half mills.	1209

(D) A county board subject to the reduction required by this	1210
section may appeal to the department for an exemption from the	1211
reduction. The board may present evidence of its attempts to	1212
obtain passage of levies and any other extenuating circumstances	1213
the board considers relevant. The department shall grant an	1214
exemption if it determines that the board has made good faith	1215
efforts to obtain an effective tax rate of at least one and	1216
one-half mills for general operations for programs under which the	1217
services described in division (B) of this section are provided	1218
and arranged or that there are extenuating circumstances.	1219

(E) Upon the request of the department, each county auditor	1220
shall certify to the department the amount of taxes charged and	1221
payable as described in division (A) of this section for the most	1222
recent tax year for which such information is available.	1223

~~Sec. 5126.17.~~ Sec. 5126.18. (A) As used in this section:

1224

(1) "County board" means a county board of mental	1225
retardation and developmental disabilities.	1226

(2) Notwithstanding section 5126.01 of the Revised Code,	1227
"adult services" means the following services, as they are	1228
identified on individual information forms submitted by county	1229
boards to the department of mental retardation and developmental	1230
disabilities for the purpose of subsidies paid to county boards	1231
under section 5126.12 of the Revised Code, provided to an	1232
individual with mental retardation or other developmental	1233
disability who is at least twenty-two years of age:	1234

(a) Assessment;

1235

(b) Home service;

1236

1237

(d) Community employment services;

1238

(e) Retirement.

1239

(3) "Adult services enrollment" means a county board's	1240
average daily membership in adult services, exclusive of such	1241
services provided to individuals served solely through service and	1242
support administration provided pursuant to section 5126.15 of the	1243
Revised Code or family support services provided pursuant to	1244
section 5126.11 of the Revised Code.	1245

(4) "Taxable value" means the taxable value of a county	1246
board certified under division (B)(1) of this section.	1247

(5) "Per-mill yield" of a county board means the quotient	1248
obtained by dividing (a) the taxable value of the county board by	1249
(b) one thousand.	1250

(6) "Local adult services cost" means a county board's	1251
expenditures for adult services, excluding all federal and state	1252
reimbursements and subsidy allocations received by such boards and	1253
expended for such services, as certified under section 5126.12 of	1254
the Revised Code.	1255

(7) "Statewide average millage" means one thousand	1256
multiplied by the quotient obtained by dividing (a) the total of	1257
the local adult services costs of all county boards by (b) the	1258
total of the taxable values of all county boards.	1259

(8) "County yield" of a county board means the product	1260
obtained by multiplying (a) the statewide average millage by (b)	1261
the per-mill yield of the county board.	1262

(9) "County yield per enrollee" of a county board means the	1263
quotient obtained by dividing (a) the county yield of the county	1264
board by (b) the adult enrollment of the county board.	1265

(10) "Statewide yield per enrollee" means the quotient	1266
obtained by dividing (a) the sum of the county yields of all	1267
county boards by (b) the sum of the adult enrollments of all	1268
county boards.	1269

(11) "Local tax effort for adult services" of a county	1270
board means one thousand multiplied by the quotient obtained by	1271
dividing (a) the local adult services cost of the county board by	1272
(b) the taxable value of the county board.	1273

(12) "Funding percentage" for a fiscal year means the	1274
percentage that the amount appropriated to the department for the	1275
purpose of making payments under this section in the fiscal year	1276
is of the amount computed under division (C)(3) of this section	1277
for the fiscal year.	1278

(13) "Funding-adjusted required millage" for a fiscal year	1279
means the statewide average millage multiplied by the funding	1280
percentage for that fiscal year.	1281

(B)(1) On the request of the director of mental retardation	1282
and developmental disabilities, the tax commissioner shall provide	1283
to the department of mental retardation and developmental	1284
disabilities information specifying ~~each county's~~the taxable	1285
value.	1286

~~(2) On request of the director, each county auditor shall~~	1287
~~submit a certified report to the department specifying the~~	1288
~~county's taxes and the aggregate rate of tax authorized to be~~	1289
~~levied by the board of county commissioners pursuant to division~~	1290
~~(L) of section 5705.19 and section 5705.222 of the Revised Code or~~	1291
~~the aggregate rate of tax authorized pursuant to that division and~~	1292
~~that section and certified to the county auditor under section~~	1293
~~319.30 of the Revised Code. Tax information submitted by the~~	1294
~~county auditor shall be obtained from the most recent tax year for~~	1295
~~which the information is available.~~	1296

~~(3) The~~of property on each county's tax list of real and	1297
public utility property and tax list of personal property for the	1298
most recent tax year for which such information is available. The	1299
director may request any other tax information necessary for the	1300
purposes of ~~sections 5126.16 to 5126.18 of the Revised Code~~this	1301
section.	1302

~~(B) Using the information obtained under this section and~~	1303
~~each board's enrollment, the department shall annually determine~~	1304
~~the hypothetical statewide average revenue per enrollee and, for~~	1305
~~each county board, the hypothetical local revenue per enrollee.~~	1306

(2) On the request of the director, each county board shall	1307
report the county board's adult services enrollment and local	1308
adult services cost.	1309

(C) Each year, the department of mental retardation and	1310
developmental disabilities shall compute the following:	1311

(1) For each county board, the amount, if any, by which the	1312
statewide yield per enrollee exceeds the county yield per	1313
enrollee;	1314

(2) For each county board, the amount of any excess	1315
computed under division (C)(1) of this section multiplied by the	1316
adult services enrollment of the county board;	1317

(3) The sum of the amounts computed under division (C)(2)	1318
of this section for all county boards.	1319

(D) From money appropriated for the purpose, the	1320
department, on or before the thirtieth day of September of each	1321
year, shall provide for payment to each county board of the amount	1322
computed for that county board under division (C)(2) of this	1323
section, subject to any reduction or adjustment under division	1324
(E), (F), or (G) of this section.	1325

(E) If a county board's local tax effort for adult services	1326
is less than the funding-adjusted required millage, the director	1327
shall reduce the amount of payment otherwise computed under	1328
division (C)(2) of this section so that the amount paid, after the	1329
reduction, is the same percentage of the amount computed under	1330
division (C)(2) of this section as the county board's local tax	1331
effort for adult services is of the funding-adjusted required	1332
millage.	1333

If the director reduces the amount of a county board's	1334
payment under this division, the department, not later than the	1335
fifteenth day of July, shall notify the county board of the	1336
reduction and the amount of the reduction. The notice shall	1337
include a statement that the county board may request to be	1338
exempted from the reduction by filing a request with the director,	1339
in the manner and form prescribed by the director, within	1340
twenty-one days after such notification is issued. The board may	1341
present evidence of its attempt to obtain passage of levies or any	1342
other extenuating circumstances the board considers relevant. If	1343
the county board requests a hearing before the director to present	1344
such evidence, the director shall conduct a hearing on the request	1345
unless the director exempts the board from the reduction on the	1346
basis of the evidence presented in the request filed by the board.	1347
Upon receiving a properly and timely filed request for exemption,	1348
but not later than the thirty-first day of August, the director	1349
shall determine whether the county board shall be exempted from	1350
all or a part of the reduction. The director may exempt the board	1351
from all or part of the reduction if the director finds that the	1352
board has made good faith efforts to obtain passage of tax levies	1353
or that there are extenuating circumstances.	1354

(F) If a payment is reduced under division (E) of this	1355
section and the director does not exempt the county board from the	1356
reduction, the amount of the reduction shall be apportioned among	1357
all county boards entitled to payments under this section for	1358
which payments were not so reduced. The amount apportioned to	1359
each county board shall be proportionate to the amount of the	1360
board's payment as computed under division (C)(2) of this section.	1361

(G) If, for any fiscal year, the amount appropriated to the	1362
department for the purpose of this section is less than the amount	1363
computed under division (C)(3) of this section for the fiscal	1364
year, the department shall adjust the amount of each payment as	1365
computed under divisions (C)(2), (E), and (F) of this section by	1366
multiplying that amount by the funding percentage.	1367

(H) The payments authorized by this section are	1368
supplemental to all other funds that may be received by a county	1369
board. A county board shall use the payments solely to pay the	1370
nonfederal share of medicaid expenditures that division (A) of	1371
section 5126.057 of the Revised Code requires the county board to	1372
pay.	1373

Sec. 5733.01. (A) The tax provided by this chapter for	1374
domestic corporations shall be the amount charged against each	1375
corporation organized for profit under the laws of this state and	1376
each nonprofit corporation organized pursuant to Chapter 1729. of	1377
the Revised Code, except as provided in sections 5733.09 and	1378
5733.10 of the Revised Code, for the privilege of exercising its	1379
franchise during the calendar year in which that amount is	1380
payable, and the tax provided by this chapter for foreign	1381
corporations shall be the amount charged against each corporation	1382
organized for profit and each nonprofit corporation organized or	1383
operating in the same or similar manner as nonprofit corporations	1384
organized under Chapter 1729. of the Revised Code, under the laws	1385
of any state or country other than this state, except as provided	1386
in sections 5733.09 and 5733.10 of the Revised Code, for the	1387
privilege of doing business in this state, owning or using a part	1388
or all of its capital or property in this state, holding a	1389
certificate of compliance with the laws of this state authorizing	1390
it to do business in this state, or otherwise having nexus in or	1391
with this state under the Constitution of the United States,	1392
during the calendar year in which that amount is payable.	1393

(B) A corporation is subject to the tax imposed by section	1394
5733.06 of the Revised Code for each calendar year that it is so	1395
organized, doing business, owning or using a part or all of its	1396
capital or property, holding a certificate of compliance, or	1397
otherwise having nexus in or with this state under the	1398
Constitution of the United States, on the first day of January of	1399
that calendar year.	1400

(C) Any corporation subject to this chapter that is not	1401
subject to the federal income tax shall file its returns and	1402
compute its tax liability as required by this chapter in the same	1403
manner as if that corporation were subject to the federal income	1404
tax.	1405

(D) For purposes of this chapter, a federally chartered	1406
financial institution shall be deemed to be organized under the	1407
laws of the state within which its principal office is located.	1408

(E) Any person, as defined in section 5701.01 of the Revised	1409
Code, shall be treated as a corporation for purposes of this	1410
chapter if the person is classified for federal income tax	1411
purposes as an association taxable as a corporation.	1412

(F) For the purposes of this chapter, "disregarded entity"	1413
has the same meaning as in division (D) of section 5745.01 of the	1414
Revised Code.	1415

(1) A person's interest in a disregarded entity, whether	1416
held directly or indirectly, shall be treated as the person's	1417
ownership of the assets and liabilities of the disregarded entity,	1418
and the income, including gain or loss, shall be included in the	1419
person's net income under this chapter.	1420

(2) Any sale, exchange, or other disposition of the	1421
person's interest in the disregarded entity, whether held directly	1422
or indirectly, shall be treated as a sale, exchange, or other	1423
disposition of the person's share of the disregarded entity's	1424
underlying assets or liabilities, and the gain or loss from such	1425
sale, exchange, or disposition shall be included in the person's	1426
net income under this chapter.	1427

(3) The disregarded entity's payroll, property, and sales	1428
factors shall be included in the person's factors.	1429

Sec. 5733.04. As used in this chapter:

1430

(A) "Issued and outstanding shares of stock" applies to	1431
nonprofit corporations, as provided in section 5733.01 of the	1432
Revised Code, and includes, but is not limited to, membership	1433
certificates and other instruments evidencing ownership of an	1434
interest in such nonprofit corporations, and with respect to a	1435
financial institution that does not have capital stock, "issued	1436
and outstanding shares of stock" includes, but is not limited to,	1437
ownership interests of depositors in the capital employed in such	1438
an institution.	1439

(B) "Taxpayer" means a corporation subject to the tax	1440
imposed by section 5733.06 of the Revised Code.	1441

(C) "Resident" means a corporation organized under the laws	1442
of this state.	1443

(D) "Commercial domicile" means the principal place from	1444
which the trade or business of the taxpayer is directed or	1445
managed.	1446

(E) "Taxable year" means the period prescribed by division	1447
(A) of section 5733.031 of the Revised Code upon the net income of	1448
which the value of the taxpayer's issued and outstanding shares of	1449
stock is determined under division (B) of section 5733.05 of the	1450
Revised Code or the period prescribed by division (A) of section	1451
5733.031 of the Revised Code that immediately precedes the date as	1452
of which the total value of the corporation is determined under	1453
division (A) or (C) of section 5733.05 of the Revised Code.	1454

(F) "Tax year" means the calendar year in and for which the	1455
tax imposed by section 5733.06 of the Revised Code is required to	1456
be paid.	1457

(G) "Internal Revenue Code" means the "Internal Revenue Code	1458
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	1459

(H) "Federal income tax" means the income tax imposed by the	1460
Internal Revenue Code.	1461

(I) Except as provided in section 5733.058 of the Revised	1462
Code, "net income" means the taxpayer's taxable income before	1463
operating loss deduction and special deductions, as required to be	1464
reported for the taxpayer's taxable year under the Internal	1465
Revenue Code, subject to the following adjustments:	1466

(1)(a) Deduct any net operating loss incurred in any taxable	1467
years ending in 1971 or thereafter but exclusive of any net	1468
operating loss incurred in taxable years ending prior to January	1469
1, 1971. This deduction shall not be allowed in any tax year	1470
commencing before December 31, 1973, but shall be carried over and	1471
allowed in tax years commencing after December 31, 1973, until	1472
fully utilized in the next succeeding taxable year or years in	1473
which the taxpayer has net income, but in no case for more than	1474
the designated carryover period as described in division (I)(1)(b)	1475
of this section. The amount of such net operating loss, as	1476
determined under the allocation and apportionment provisions of	1477
section 5733.051 and division (B) of section 5733.05 of the	1478
Revised Code for the year in which the net operating loss occurs,	1479
shall be deducted from net income, as determined under the	1480
allocation and apportionment provisions of section 5733.051 and	1481
division (B) of section 5733.05 of the Revised Code, to the extent	1482
necessary to reduce net income to zero with the remaining unused	1483
portion of the deduction, if any, carried forward to the remaining	1484
years of the designated carryover period as described in division	1485
(I)(1)(b) of this section, or until fully utilized, whichever	1486
occurs first.	1487

(b) For losses incurred in taxable years ending on or before	1488
December 31, 1981, the designated carryover period shall be the	1489
five consecutive taxable years after the taxable year in which the	1490
net operating loss occurred. For losses incurred in taxable years	1491
ending on or after January 1, 1982, the designated carryover	1492
period shall be the fifteen consecutive taxable years after the	1493
taxable year in which the net operating loss occurs.	1494

(c) The tax commissioner may require a taxpayer to furnish	1495
any information necessary to support a claim for deduction under	1496
division (I)(1)(a) of this section and no deduction shall be	1497
allowed unless the information is furnished.	1498

(2) Deduct any amount included in net income by application	1499
of section 78 or 951 of the Internal Revenue Code, amounts	1500
received for royalties, technical or other services derived from	1501
sources outside the United States, and dividends received from a	1502
subsidiary, associate, or affiliated corporation that neither	1503
transacts any substantial portion of its business nor regularly	1504
maintains any substantial portion of its assets within the United	1505
States. For purposes of determining net foreign source income	1506
deductible under division (I)(2) of this section, the amount of	1507
gross income from all such sources other than dividend income and	1508
income derived by application of section 78 or 951 of the Internal	1509
Revenue Code shall be reduced by:	1510

(a) The amount of any reimbursed expenses for personal	1511
services performed by employees of the taxpayer for the	1512
subsidiary, associate, or affiliated corporation;	1513

(b) Ten per cent of the amount of royalty income and	1514
technical assistance fees;	1515

(c) Fifteen per cent of the amount of ~~dividends and~~ all	1516
other income.	1517

The amounts described in divisions (I)(2)(a) to (c) of this	1518
section are deemed to be the expenses attributable to the	1519
production of deductible foreign source income unless the taxpayer	1520
shows, by clear and convincing evidence, less actual expenses, or	1521
the tax commissioner shows, by clear and convincing evidence, more	1522
actual expenses.	1523

(3) Add any loss or deduct any gain resulting from the sale,	1524
exchange, or other disposition of a capital asset, or an asset	1525
described in section 1231 of the Internal Revenue Code, to the	1526
extent that such loss or gain occurred prior to the first taxable	1527
year on which the tax provided for in section 5733.06 of the	1528
Revised Code is computed on the corporation's net income. For	1529
purposes of division (I)(3) of this section, the amount of the	1530
prior loss or gain shall be measured by the difference between the	1531
original cost or other basis of the asset and the fair market	1532
value as of the beginning of the first taxable year on which the	1533
tax provided for in section 5733.06 of the Revised Code is	1534
computed on the corporation's net income. At the option of the	1535
taxpayer, the amount of the prior loss or gain may be a percentage	1536
of the gain or loss, which percentage shall be determined by	1537
multiplying the gain or loss by a fraction, the numerator of which	1538
is the number of months from the acquisition of the asset to the	1539
beginning of the first taxable year on which the fee provided in	1540
section 5733.06 of the Revised Code is computed on the	1541
corporation's net income, and the denominator of which is the	1542
number of months from the acquisition of the asset to the sale,	1543
exchange, or other disposition of the asset. The adjustments	1544
described in this division do not apply to any gain or loss where	1545
the gain or loss is recognized by a qualifying taxpayer, as	1546
defined in section 5733.0510 of the Revised Code, with respect to	1547
a qualifying taxable event, as defined in that section.	1548

(4) Deduct the dividend received deduction provided by	1549
section 243 of the Internal Revenue Code.	1550

(5) Deduct any interest or interest equivalent on public	1551
obligations and purchase obligations to the extent included in	1552
federal taxable income. As used in divisions (I)(5) and (6) of	1553
this section, "public obligations," "purchase obligations," and	1554
"interest or interest equivalent" have the same meanings as in	1555
section 5709.76 of the Revised Code.	1556

(6) Add any loss or deduct any gain resulting from the sale,	1557
exchange, or other disposition of public obligations to the extent	1558
included in federal taxable income.	1559

(7) To the extent not otherwise allowed, deduct any	1560
dividends or distributions received by a taxpayer from a public	1561
utility, excluding an electric company, if the taxpayer owns at	1562
least eighty per cent of the issued and outstanding common stock	1563
of the public utility. As used in division (I)(7) of this	1564
section, "public utility" means a public utility as defined in	1565
Chapter 5727. of the Revised Code, whether or not the public	1566
utility is doing business in the state.	1567

(8) To the extent not otherwise allowed, deduct any	1568
dividends received by a taxpayer from an insurance company, if the	1569
taxpayer owns at least eighty per cent of the issued and	1570
outstanding common stock of the insurance company. As used in	1571
division (I)(8) of this section, "insurance company" means an	1572
insurance company that is taxable under Chapter 5725. or 5729. of	1573
the Revised Code.	1574

(9) Deduct expenditures for modifying existing buildings or	1575
structures to meet American national standards institute standard	1576
A-117.1-1961 (R-1971), as amended; provided, that no deduction	1577
shall be allowed to the extent that such deduction is not	1578
permitted under federal law or under rules of the tax	1579
commissioner. Those deductions as are allowed may be taken over a	1580
period of five years. The tax commissioner shall adopt rules	1581
under Chapter 119. of the Revised Code establishing reasonable	1582
limitations on the extent that expenditures for modifying existing	1583
buildings or structures are attributable to the purpose of making	1584
the buildings or structures accessible to and usable by physically	1585
handicapped persons.	1586

(10) Deduct the amount of wages and salaries, if any, not	1587
otherwise allowable as a deduction but that would have been	1588
allowable as a deduction in computing federal taxable income	1589
before operating loss deduction and special deductions for the	1590
taxable year, had the targeted jobs credit allowed and determined	1591
under sections 38, 51, and 52 of the Internal Revenue Code not	1592
been in effect.	1593

(11) Deduct net interest income on obligations of the United	1594
States and its territories and possessions or of any authority,	1595
commission, or instrumentality of the United States to the extent	1596
the laws of the United States prohibit inclusion of the net	1597
interest for purposes of determining the value of the taxpayer's	1598
issued and outstanding shares of stock under division (B) of	1599
section 5733.05 of the Revised Code. As used in division (I)(11)	1600
of this section, "net interest" means interest net of any expenses	1601
taken on the federal income tax return that would not have been	1602
allowed under section 265 of the Internal Revenue Code if the	1603
interest were exempt from federal income tax.	1604

(12)(a) Except as set forth in division (I)(12)(d) of this	1605
section, to the extent not included in computing the taxpayer's	1606
federal taxable income before operating loss deduction and special	1607
deductions, add gains and deduct losses from direct or indirect	1608
sales, exchanges, or other dispositions, made by a related entity	1609
who is not a taxpayer, of the taxpayer's indirect, beneficial, or	1610
constructive investment in the stock or debt of another entity,	1611
unless the gain or loss has been included in computing the federal	1612
taxable income before operating loss deduction and special	1613
deductions of another taxpayer with a more closely related	1614
investment in the stock or debt of the other entity. The amount	1615
of gain added or loss deducted shall not exceed the product	1616
obtained by multiplying such gain or loss by the taxpayer's	1617
proportionate share, directly, indirectly, beneficially, or	1618
constructively, of the outstanding stock of the related entity	1619
immediately prior to the direct or indirect sale, exchange, or	1620
other disposition.	1621

(b) Except as set forth in division (I)(12)(e) of this	1622
section, to the extent not included in computing the taxpayer's	1623
federal taxable income before operating loss deduction and special	1624
deductions, add gains and deduct losses from direct or indirect	1625
sales, exchanges, or other dispositions made by a related entity	1626
who is not a taxpayer, of intangible property other than stock,	1627
securities, and debt, if such property was owned, or used in whole	1628
or in part, at any time prior to or at the time of the sale,	1629
exchange, or disposition by either the taxpayer or by a related	1630
entity that was a taxpayer at any time during the related entity's	1631
ownership or use of such property, unless the gain or loss has	1632
been included in computing the federal taxable income before	1633
operating loss deduction and special deductions of another	1634
taxpayer with a more closely related ownership or use of such	1635
intangible property. The amount of gain added or loss deducted	1636
shall not exceed the product obtained by multiplying such gain or	1637
loss by the taxpayer's proportionate share, directly, indirectly,	1638
beneficially, or constructively, of the outstanding stock of the	1639
related entity immediately prior to the direct or indirect sale,	1640
exchange, or other disposition.	1641

(c) As used in division (I)(12) of this section, "related	1642
entity" means those entities described in divisions (I)(12)(c)(i)	1643
to (iii) of this section:	1644

(i) An individual stockholder, or a member of the	1645
stockholder's family enumerated in section 318 of the Internal	1646
Revenue Code, if the stockholder and the members of the	1647
stockholder's family own, directly, indirectly, beneficially, or	1648
constructively, in the aggregate, at least fifty per cent of the	1649
value of the taxpayer's outstanding stock;	1650

(ii) A stockholder, or a stockholder's partnership, estate,	1651
trust, or corporation, if the stockholder and the stockholder's	1652
partnerships, estates, trusts, and corporations own directly,	1653
indirectly, beneficially, or constructively, in the aggregate, at	1654
least fifty per cent of the value of the taxpayer's outstanding	1655
stock;	1656

(iii) A corporation, or a party related to the corporation	1657
in a manner that would require an attribution of stock from the	1658
corporation to the party or from the party to the corporation	1659
under division (I)(12)(c)(iv) of this section, if the taxpayer	1660
owns, directly, indirectly, beneficially, or constructively, at	1661
least fifty per cent of the value of the corporation's outstanding	1662
stock.	1663

(iv) The attribution rules of section 318 of the Internal	1664
Revenue Code apply for purposes of determining whether the	1665
ownership requirements in divisions (I)(12)(c)(i) to (iii) of this	1666
section have been met.	1667

(d) For purposes of the adjustments required by division	1668
(I)(12)(a) of this section, the term "investment in the stock or	1669
debt of another entity" means only those investments where the	1670
taxpayer and the taxpayer's related entities directly, indirectly,	1671
beneficially, or constructively own, in the aggregate, at any time	1672
during the twenty-four month period commencing one year prior to	1673
the direct or indirect sale, exchange, or other disposition of	1674
such investment at least fifty per cent or more of the value of	1675
either the outstanding stock or such debt of such other entity.	1676

(e) For purposes of the adjustments required by division	1677
(I)(12)(b) of this section, the term "related entity" excludes all	1678
of the following:	1679

(i) Foreign corporations as defined in section 7701 of the	1680
Internal Revenue Code;	1681

(ii) Foreign partnerships as defined in section 7701 of the	1682
Internal Revenue Code;	1683

(iii) Corporations, partnerships, estates, and trusts	1684
created or organized in or under the laws of the Commonwealth of	1685
Puerto Rico or any possession of the United States;	1686

(iv) Foreign estates and foreign trusts as defined in	1687
section 7701 of the Internal Revenue Code.	1688

The exclusions described in divisions (I)(12)(e)(i) to (iv)	1689
of this section do not apply if the corporation, partnership,	1690
estate, or trust is described in any one of divisions (C)(1) to	1691
(5) of section 5733.042 of the Revised Code.	1692

(f) Nothing in division (I)(12) of this section shall	1693
require or permit a taxpayer to add any gains or deduct any losses	1694
described in divisions (I)(12)(f)(i) and (ii) of this section:	1695

(i) Gains or losses recognized for federal income tax	1696
purposes by an individual, estate, or trust without regard to the	1697
attribution rules described in division (I)(12)(c) of this	1698
section;	1699

(ii) A related entity's gains or losses described in	1700
division (I)(12)(b) of this section if the taxpayer's ownership of	1701
or use of such intangible property was limited to a period not	1702
exceeding nine months and was attributable to a transaction or a	1703
series of transactions executed in accordance with the election or	1704
elections made by the taxpayer or a related entity pursuant to	1705
section 338 of the Internal Revenue Code.	1706

(13) Any adjustment required by section 5733.042 of the	1707
Revised Code.	1708

(14) Add any amount claimed as a credit under section	1709
5733.0611 of the Revised Code to the extent that such amount	1710
satisfies either of the following:	1711

(a) It was deducted or excluded from the computation of the	1712
corporation's taxable income before operating loss deduction and	1713
special deductions as required to be reported for the	1714
corporation's taxable year under the Internal Revenue Code;	1715

(b) It resulted in a reduction of the corporation's taxable	1716
income before operating loss deduction and special deductions as	1717
required to be reported for any of the corporation's taxable years	1718
under the Internal Revenue Code.	1719

(15) Deduct the amount contributed by the taxpayer to an	1720
individual development account program established by a county	1721
department of job and family services pursuant to sections 329.11	1722
to 329.14 of the Revised Code for the purpose of matching funds	1723
deposited by program participants. On request of the tax	1724
commissioner, the taxpayer shall provide any information that, in	1725
the tax commissioner's opinion, is necessary to establish the	1726
amount deducted under division (I)(15) of this section.	1727

(16) Any adjustment required by section 5733.0510 of the	1728
Revised Code.	1729

(17)(a) Add five-sixths of the amount of depreciation	1730
expense allowed under subsection (k) of section 168 of the	1731
Internal Revenue Code, including a person's proportionate or	1732
distributive share of the amount of depreciation expense allowed	1733
by that subsection to any pass-through entity in which the person	1734
has direct or indirect ownership. The tax commissioner, under	1735
procedures established by the commissioner, may waive the add-back	1736
related to a pass-through entity if the person owns, directly or	1737
indirectly, less than five per cent of the pass-through entity.	1738

(b) Nothing in division (I)(17) of this section shall be	1739
construed to adjust or modify the adjusted basis of any asset.	1740

(c) To the extent the add-back is attributable to property	1741
generating income or loss allocable under section 5733.051 of the	1742
Revised Code, the add-back shall be allocated to the same location	1743
as the income or loss generated by that property. Otherwise, the	1744
add-back shall be apportioned, subject to division (B)(2)(d) of	1745
section 5733.05 of the Revised Code.	1746

(18)(a) If a person is required to make the add-back under	1747
division (I)(17)(a) of this section for a tax year, the person	1748
shall deduct one-fifth of the amount added back for each of the	1749
succeeding five tax years.	1750

(b) If the amount deducted under division (I)(18)(a) of	1751
this section is attributable to an add-back allocated under	1752
division (I)(17)(c) of this section, the amount deducted shall be	1753
allocated to the same location. Otherwise, the amount shall be	1754
apportioned using the apportionment factors for the taxable year	1755
in which the deduction is taken, subject to division (B)(2)(d) of	1756
section 5733.05 of the Revised Code.	1757

(J) Any term used in this chapter has the same meaning as	1758
when used in comparable context in the laws of the United States	1759
relating to federal income taxes unless a different meaning is	1760
clearly required. Any reference in this chapter to the Internal	1761
Revenue Code includes other laws of the United States relating to	1762
federal income taxes.	1763

(K) "Financial institution" has the meaning given by section	1764
5725.01 of the Revised Code but does not include a production	1765
credit association as described in 85 Stat. 597, 12 U.S.C.A. 2091.	1766

(L)(1) A "qualifying holding company" is any corporation	1767
satisfying all of the following requirements:	1768

(a) Subject to divisions (L)(2) and (3) of this section, the	1769
net book value of the corporation's intangible assets is greater	1770
than or equal to ninety per cent of the net book value of all of	1771
its assets and at least fifty per cent of the net book value of	1772
all of its assets represents direct or indirect investments in the	1773
equity of, loans and advances to, and accounts receivable due from	1774
related members;	1775

(b) At least ninety per cent of the corporation's gross	1776
income for the taxable year is attributable to the following:	1777

(i) The maintenance, management, ownership, acquisition,	1778
use, and disposition of its intangible property, its aircraft the	1779
use of which is not subject to regulation under 14 C.F.R. part 121	1780
or part 135, and any real property described in division (L)(2)(c)	1781
of this section;	1782

(ii) The collection and distribution of income from such	1783
property.	1784

(c) The corporation is not a financial institution on the	1785
last day of the taxable year ending prior to the first day of the	1786
tax year;	1787

(d) The corporation's related members make a good faith and	1788
reasonable effort to make timely and fully the adjustments	1789
required by division (C)(2) of section 5733.05 of the Revised Code	1790
and to pay timely and fully all uncontested taxes, interest,	1791
penalties, and other fees and charges imposed under this chapter;	1792

(e) Subject to division (L)(4) of this section, the	1793
corporation elects to be treated as a qualifying holding company	1794
for the tax year.	1795

A corporation otherwise satisfying divisions (L)(1)(a) to (e)	1796
of this section that does not elect to be a qualifying holding	1797
company is not a qualifying holding company for the purposes of	1798
this chapter.	1799

(2)(a)(i) For purposes of making the ninety per cent	1800
computation under division (L)(1)(a) of this section, the net book	1801
value of the corporation's assets shall not include the net book	1802
value of aircraft or real property described in division	1803
(L)(1)(b)(i) of this section.	1804

(ii) For purposes of making the fifty per cent computation	1805
under division (L)(1)(a) of this section, the net book value of	1806
assets shall include the net book value of aircraft or real	1807
property described in division (L)(1)(b)(i) of this section.	1808

(b)(i) As used in division (L) of this section, "intangible	1809
asset" includes, but is not limited to, the corporation's direct	1810
interest in each pass-through entity only if at all times during	1811
the corporation's taxable year ending prior to the first day of	1812
the tax year the corporation's and the corporation's related	1813
members' combined direct and indirect interests in the capital or	1814
profits of such pass-through entity do not exceed fifty per cent.	1815
If the corporation's interest in the pass-through entity is an	1816
intangible asset for that taxable year, then the distributive	1817
share of any income from the pass-through entity shall be income	1818
from an intangible asset for that taxable year.	1819

(ii) If a corporation's and the corporation's related	1820
members' combined direct and indirect interests in the capital or	1821
profits of a pass-through entity exceed fifty per cent at any time	1822
during the corporation's taxable year ending prior to the first	1823
day of the tax year, "intangible asset" does not include the	1824
corporation's direct interest in the pass-through entity, and the	1825
corporation shall include in its assets its proportionate share of	1826
the assets of any such pass-through entity and shall include in	1827
its gross income its distributive share of the gross income of	1828
such pass-through entity in the same form as was earned by the	1829
pass-through entity.	1830

(iii) A pass-through entity's direct or indirect	1831
proportionate share of any other pass-through entity's assets	1832
shall be included for the purpose of computing the corporation's	1833
proportionate share of the pass-through entity's assets under	1834
division (L)(2)(b)(ii) of this section, and such pass-through	1835
entity's distributive share of any other pass-through entity's	1836
gross income shall be included for purposes of computing the	1837
corporation's distributive share of the pass-through entity's	1838
gross income under division (L)(2)(b)(ii) of this section.	1839

(c) For the purposes of divisions (L)(1)(b)(i), (1)(b)(ii),	1840
(2)(a)(i), and (2)(a)(ii) of this section, real property is	1841
described in division (L)(2)(c) of this section only if all of the	1842
following conditions are present at all times during the taxable	1843
year ending prior to the first day of the tax year:	1844

(i) The real property serves as the headquarters of the	1845
corporation's trade or business, or is the place from which the	1846
corporation's trade or business is principally managed or	1847
directed;	1848

(ii) Not more than ten per cent of the value of the real	1849
property and not more than ten per cent of the square footage of	1850
the building or buildings that are part of the real property is	1851
used, made available, or occupied for the purpose of providing,	1852
acquiring, transferring, selling, or disposing of tangible	1853
property or services in the normal course of business to persons	1854
other than related members, the corporation's employees and their	1855
families, and such related members' employees and their families.	1856

(d) As used in division (L) of this section, "related	1857
member" has the same meaning as in division (A)(6) of section	1858
5733.042 of the Revised Code without regard to division (B) of	1859
that section.	1860

(3) The percentages described in division (L)(1)(a) of this	1861
section shall be equal to the quarterly average of those	1862
percentages as calculated during the corporation's taxable year	1863
ending prior to the first day of the tax year.	1864

(4) With respect to the election described in division	1865
(L)(1)(e) of this section:	1866

(a) The election need not accompany a timely filed report;

1867

(b) The election need not accompany the report; rather, the	1868
election may accompany a subsequently filed but timely application	1869
for refund and timely amended report, or a subsequently filed but	1870
timely petition for reassessment;	1871

1872

(d) The election applies only to the tax year specified by	1873
the corporation;	1874

(e) The corporation's related members comply with division	1875
(L)(1)(d) of this section.	1876

Nothing in division (L)(4) of this section shall be construed	1877
to extend any statute of limitations set forth in this chapter.	1878

(M) "Qualifying controlled group" means two or more	1879
corporations that satisfy the ownership and control requirements	1880
of division (A) of section 5733.052 of the Revised Code.	1881

(N) "Limited liability company" means any limited liability	1882
company formed under Chapter 1705. of the Revised Code or under	1883
the laws of any other state.	1884

(O) "Pass-through entity" means a corporation that has made	1885
an election under subchapter S of Chapter 1 of Subtitle A of the	1886
Internal Revenue Code for its taxable year under that code, or a	1887
partnership, limited liability company, or any other person, other	1888
than an individual, trust, or estate, if the partnership, limited	1889
liability company, or other person is not classified for federal	1890
income tax purposes as an association taxed as a corporation.	1891

(P) "Electric company" and "combined company" have the same	1892
meanings as in section 5727.01 of the Revised Code.	1893

Sec. 5733.40. As used in sections 5733.40 and 5733.41 and	1894
Chapter 5747. of the Revised Code:	1895

(A)(1) "Adjusted qualifying amount" means either of the	1896
following:	1897

(a) The ~~net~~ sum of a qualifying investor's distributive	1898
share of the income, gain, expense, or loss of a qualifying	1899
pass-through entity for the qualifying taxable year of the	1900
qualifying pass-through entity multiplied by the apportionment	1901
fraction defined in division (B) of this section, subject to	1902
section 5733.401 of the Revised Code and divisions (A)(2) to	1903
~~(6)~~(7) of this section;	1904

(b) The sum of a qualifying beneficiary's share of the	1905
qualifying net income and qualifying net gain distributed by a	1906
qualifying trust for the qualifying taxable year of the qualifying	1907
trust multiplied by the apportionment fraction defined in division	1908
(B) of this section, subject to section 5733.401 of the Revised	1909
Code and divisions (A)(2) to ~~(5)~~(6) of this section.	1910

(2) The sum shall exclude any amount which, pursuant to the	1911
Constitution of the United States, the Constitution of Ohio, or	1912
any federal law is not subject to a tax on or measured by net	1913
income.	1914

(3) The sum shall be increased by all amounts representing	1915
expenses other than amounts described in division (A)~~(6)~~(7) of	1916
this section that the ~~taxpayer~~qualifying entity paid to or	1917
incurred with respect to direct or indirect transactions with one	1918
or more related members, excluding the cost of goods sold	1919
calculated in accordance with section 263A of the Internal Revenue	1920
Code and United States department of the treasury regulations	1921
issued thereunder. Nothing in division (A)(3) of this section	1922
shall be construed to limit solely to this chapter the application	1923
of section 263A of the Internal Revenue Code and United States	1924
department of the treasury regulations issued thereunder.	1925

(4) The sum shall be increased by all recognized losses,	1926
other than losses from sales of inventory the cost of which is	1927
calculated in accordance with section 263A of the Internal Revenue	1928
Code and United States department of the treasury regulations	1929
issued thereunder, with respect to all direct or indirect	1930
transactions with one or more related members. Losses from the	1931
sales of such inventory shall be calculated in accordance with	1932
section 482 of the Internal Revenue Code and United States	1933
department of the treasury regulations issued thereunder. Nothing	1934
in division (A)(4) of this section shall be construed to limit	1935
solely to this section the application of section 263A and	1936
section 482 of the Internal Revenue Code and United States	1937
department of the treasury regulations issued thereunder.	1938

(5) The sum shall be increased or decreased by an amount	1939
equal to the qualifying investor's or qualifying beneficiary's	1940
distributive or proportionate share of the amount that the	1941
qualifying entity would be required to add or deduct under	1942
divisions (A)(20) and (21) of section 5747.01 of the Revised Code	1943
if the qualifying entity were a taxpayer for the purposes of	1944
Chapter 5747. of the Revised Code, multiplied by the apportionment	1945
fraction for the qualifying entity's taxable year for which the	1946
addition or deduction would be required to be made.	1947

(6) The sum shall be computed without regard to section	1948
5733.051 or division (D) of section 5733.052 of the Revised Code.	1949

~~(6)~~(7) For the purposes of Chapters 5733. and 5747. of the	1950
Revised Code, guaranteed payments ~~made~~or compensation paid to	1951
investors by a ~~partnership or by a limited liability company~~	1952
qualifying entity that is not subject to the tax imposed by	1953
section 5733.06 of the Revised Code~~, and compensation paid by an S~~	1954
~~corporation to its shareholders,~~ shall be considered a	1955
distributive share of income of the ~~partnership, limited liability~~	1956
~~company, or S corporation~~qualifying entity. Division (A)~~(6)~~(7)	1957
of this section applies only to such payments or such compensation	1958
~~made or~~ paid to an investor who at any time during the qualifying	1959
entity's taxable year holds at least a twenty per cent direct or	1960
indirect interest in the profits or capital of the qualifying	1961
entity.	1962

(B) "Apportionment fraction" means:

1963

(1) With respect to a qualifying pass-through entity other	1964
than a financial institution, the fraction calculated pursuant to	1965
division (B)(2) of section 5733.05 of the Revised Code as if the	1966
qualifying pass-through entity were a corporation subject to the	1967
tax imposed by section 5733.06 of the Revised Code;	1968

(2) With respect to a qualifying pass-through entity that is	1969
a financial institution, the fraction calculated pursuant to	1970
division (C) of section 5733.056 of the Revised Code as if the	1971
qualifying pass-through entity were a financial institution	1972
subject to the tax imposed by section 5733.06 of the Revised Code.	1973

(3) With respect to a qualifying trust, the fraction	1974
calculated pursuant to division (B)(2) of section 5733.05 of the	1975
Revised Code as if the qualifying trust were a corporation subject	1976
to the tax imposed by section 5733.06 of the Revised Code, except	1977
that the property, payroll, and sales fractions shall be	1978
calculated by including in the numerator and denominator of the	1979
fractions only the property, payroll, and sales, respectively,	1980
directly related to the production of income or gain from	1981
acquisition, ownership, use, maintenance, management, or	1982
disposition of tangible personal property located in this state at	1983
any time during the qualifying trust's qualifying taxable year or	1984
of real property located in this state.	1985

(C) "Qualifying beneficiary" means any individual that,	1986
during the qualifying taxable year of a qualifying trust, is a	1987
beneficiary of that trust, but does not include an individual who	1988
is a resident taxpayer for the purposes of Chapter 5747. of the	1989
Revised Code for the entire qualifying taxable year of the	1990
qualifying trust.	1991

(D) "Fiscal year" means an accounting period ending on any	1992
day other than the thirty-first day of December.	1993

(E) "Individual" means a natural person.

1994

(F) "Month" means a calendar month.

1995

(G) "Partnership" has the same meaning as in section 5747.01	1996
of the Revised Code.	1997

(H) "Investor" means any person that, during any portion of a	1998
taxable year of a qualifying pass-through entity, is a partner,	1999
member, shareholder, or investor in that qualifying pass-through	2000
entity.	2001

(I) Except as otherwise provided in section 5733.402 or	2002
5747.401 of the Revised Code, "qualifying investor" means any	2003
investor except those described in divisions (I)(1) to (9) of this	2004
section.	2005

(1) An investor satisfying one of the descriptions under	2006
section 501(a) or (c) of the Internal Revenue Code, an electing	2007
small business trust, a partnership with equity securities	2008
registered with the United States securities and exchange	2009
commission under section 12 of the "Securities Exchange Act of	2010
1934," as amended, or an investor described in division (F) of	2011
section 3334.01, or division (A) or (C) of section 5733.09 of the	2012
Revised Code for the entire qualifying taxable year of the	2013
qualifying pass-through entity.	2014

(2) An investor who is either an individual or an estate and	2015
is a resident taxpayer for the purposes of section 5747.01 of the	2016
Revised Code for the entire qualifying taxable year of the	2017
qualifying pass-through entity.	2018

(3) An investor who is an individual for whom the qualifying	2019
pass-through entity makes a good faith and reasonable effort to	2020
comply fully and timely with the filing and payment requirements	2021
set forth in division (D) of section 5747.08 of the Revised Code	2022
and section 5747.09 of the Revised Code with respect to the	2023
individual's adjusted qualifying amount for the entire qualifying	2024
taxable year of the qualifying pass-through entity.	2025

(4) An investor that is another qualifying pass-through	2026
entity having only investors described in division (I)(1), (2),	2027
(3), or (6) of this section during the three-year period beginning	2028
twelve months prior to the first day of the qualifying taxable	2029
year of the qualifying pass-through entity.	2030

(5) An investor that is another pass-through entity having	2031
no investors other than individuals and estates during the	2032
qualifying taxable year of the qualifying pass-through entity in	2033
which it is an investor, and that makes a good faith and	2034
reasonable effort to comply fully and timely with the filing and	2035
payment requirements set forth in division (D) of section 5747.08	2036
of the Revised Code and section 5747.09 of the Revised Code with	2037
respect to investors that are not resident taxpayers of this state	2038
for the purposes of Chapter 5747. of the Revised Code for the	2039
entire qualifying taxable year of the qualifying pass-through	2040
entity in which it is an investor.	2041

(6) An investor that is a financial institution required to	2042
calculate the tax in accordance with division (D) of section	2043
5733.06 of the Revised Code on the first day of January of the	2044
calendar year immediately following the last day of the financial	2045
institution's calendar or fiscal year in which ends the taxpayer's	2046
taxable year.	2047

(7) An investor other than an individual that satisfies all	2048
the following:	2049

(a) The investor submits a written statement to the	2050
qualifying pass-through entity stating that the investor	2051
irrevocably agrees that the investor has nexus with this state	2052
under the Constitution of the United States and is subject to and	2053
liable for the tax calculated under division (B) of section	2054
5733.06 of the Revised Code with respect to the investor's	2055
adjusted qualifying amount for the entire qualifying taxable year	2056
of the qualifying pass-through entity. The statement is subject	2057
to the penalties of perjury, shall be retained by the qualifying	2058
pass-through entity for no fewer than seven years, and shall be	2059
delivered to the tax commissioner upon request.	2060

(b) The investor makes a good faith and reasonable effort to	2061
comply timely and fully with all the reporting and payment	2062
requirements set forth in Chapter 5733. of the Revised Code with	2063
respect to the investor's adjusted qualifying amount for the	2064
entire qualifying taxable year of the qualifying pass-through	2065
entity.	2066

(c) Neither the investor nor the qualifying pass-through	2067
entity in which it is an investor, before, during, or after the	2068
qualifying pass-through entity's qualifying taxable year, carries	2069
out any transaction or transactions with one or more related	2070
members of the investor or the qualifying pass-through entity	2071
resulting in a reduction or deferral of tax imposed by Chapter	2072
5733. of the Revised Code with respect to all or any portion of	2073
the investor's adjusted qualifying amount for the qualifying	2074
pass-through entity's taxable year, or that constitute a sham,	2075
lack economic reality, or are part of a series of transactions the	2076
form of which constitutes a step transaction or transactions or	2077
does not reflect the substance of those transactions.	2078

(8) Any other investor that the tax commissioner may	2079
designate by rule. The tax commissioner may adopt rules including	2080
a rule defining "qualifying investor" or "qualifying beneficiary"	2081
and governing the imposition of the withholding tax imposed by	2082
section 5747.41 of the Revised Code with respect to an individual	2083
who is a resident taxpayer for the purposes of Chapter 5747. of	2084
the Revised Code for only a portion of the qualifying taxable year	2085
of the qualifying entity.	2086

(9) An investor that is a trust or fund the beneficiaries of	2087
which, during the qualifying taxable year of the qualifying	2088
pass-through entity, are limited to the following:	2089

(a) A person that is or may be the beneficiary of a trust	2090
subject to Subchapter D of Chapter 1 of Subtitle A of the Internal	2091
Revenue Code.	2092

(b) A person that is or may be the beneficiary of or the	2093
recipient of payments from a trust or fund that is a nuclear	2094
decommissioning reserve fund, a designated settlement fund, or any	2095
other trust or fund established to resolve and satisfy claims that	2096
may otherwise be asserted by the beneficiary or a member of the	2097
beneficiary's family. Sections 267(c)(4), 468A(e), and 468B(d)(2)	2098
of the Internal Revenue Code apply to the determination of whether	2099
such a person satisfies division (I)(9) of this section.	2100

(c) A person who is or may be the beneficiary of a trust	2101
that, under its governing instrument, is not required to	2102
distribute all of its income currently. Division (I)(9)(c) of	2103
this section applies only if the trust, prior to the due date for	2104
filing the qualifying pass-through entity's return for taxes	2105
imposed by section 5733.41 and sections 5747.41 to 5747.453 of the	2106
Revised Code, irrevocably agrees in writing that for the taxable	2107
year during or for which the trust distributes any of its income	2108
to any of its beneficiaries, the trust is a qualifying trust and	2109
will pay the estimated tax, and will withhold and pay the withheld	2110
tax, as required under sections 5747.40 to 5747.453 of the Revised	2111
Code.	2112

For the purposes of division (I)(9) of this section, a trust	2113
or fund shall be considered to have a beneficiary other than	2114
persons described under divisions (I)(9)(a) to (c) of this section	2115
if a beneficiary would not qualify under those divisions under the	2116
doctrines of "economic reality," "sham transaction," "step	2117
doctrine," or "substance over form." A trust or fund described in	2118
division (I)(9) of this section bears the burden of establishing	2119
by a preponderance of the evidence that any transaction giving	2120
rise to the tax benefits provided under division (I)(9) of this	2121
section does not have as a principal purpose a claim of those tax	2122
benefits. Nothing in this section shall be construed to limit	2123
solely to this section the application of the doctrines referred	2124
to in this paragraph.	2125

(J) "Qualifying net gain" means any recognized net gain with	2126
respect to the acquisition, ownership, use, maintenance,	2127
management, or disposition of tangible personal property located	2128
in this state at any time during a trust's qualifying taxable year	2129
or real property located in this state.	2130

(K) "Qualifying net income" means any recognized income, net	2131
of related deductible expenses, other than distributions	2132
deductions with respect to the acquisition, ownership, use,	2133
maintenance, management, or disposition of tangible personal	2134
property located in this state at any time during the trust's	2135
qualifying taxable year or real property located in this state.	2136

(L) "Qualifying entity" means a qualifying pass-through	2137
entity or a qualifying trust.	2138

(M) "Qualifying trust" means a trust subject to subchapter J	2139
of the Internal Revenue Code that, during any portion of the	2140
trust's qualifying taxable year, has income or gain from the	2141
acquisition, management, ownership, use, or disposition of	2142
tangible personal property located in this state at any time	2143
during the trust's qualifying taxable year or real property	2144
located in this state. "Qualifying trust" does not include a	2145
person described in section 501(c) of the Internal Revenue Code or	2146
a person described in division (C) of section 5733.09 of the	2147
Revised Code.	2148

(N) "Qualifying pass-through entity" means a pass-through	2149
entity as defined in section 5733.04 of the Revised Code,	2150
excluding a person described in section 501(c) of the Internal	2151
Revenue Code, a partnership with equity securities registered with	2152
the United States securities and exchange commission under section	2153
12 of the Securities Exchange Act of 1934, as amended, or a person	2154
described in division (C) of section 5733.09 of the Revised Code.	2155

(O) "Quarter" means the first three months, the second three	2156
months, the third three months, or the last three months of a	2157
qualifying entity's qualifying taxable year.	2158

(P) "Related member" has the same meaning as in division	2159
(A)(6) of section 5733.042 of the Revised Code without regard to	2160
division (B) of that section. However, for the purposes of	2161
divisions (A)(3) and (4) of this section only, "related member"	2162
has the same meaning as in division (A)(6) of section 5733.042 of	2163
the Revised Code without regard to division (B) of that section,	2164
but shall be applied by substituting "forty per cent" for "twenty	2165
per cent" wherever "twenty per cent" appears in division (A) of	2166
that section.	2167

(Q) "Return" or "report" means the notifications and reports	2168
required to be filed pursuant to sections 5747.42 to 5747.45 of	2169
the Revised Code for the purpose of reporting the tax imposed	2170
under section 5733.41 or 5747.41 of the Revised Code, and included	2171
declarations of estimated tax when so required.	2172

(R) "Qualifying taxable year" means the calendar year or the	2173
qualifying entity's fiscal year ending during the calendar year,	2174
or fractional part thereof, for which the adjusted qualifying	2175
amount is calculated pursuant to sections 5733.40 and 5733.41 or	2176
sections 5747.40 to 5747.453 of the Revised Code.	2177

(S) "Distributive share" includes the sum of the income,	2178
gain, expense, or loss of a disregarded entity.	2179

Sec. 5740.03. Subject to section 5740.05 of the Revised Code,	2180
the tax commissioner may enter into the agreement with one or more	2181
states, provided that the general assembly, by adoption of a	2182
concurrent resolution, first authorizes the tax commissioner to	2183
enter into the agreement. In furtherance of the agreement, the	2184
commissioner may act jointly with other member states to establish	2185
standards for certification of service providers and automated	2186
systems, establish performance standards for multi-state sellers,	2187
and procure goods and services. The commissioner may take other	2188
actions reasonably required to implement this chapter, including	2189
adopting rules.	2190

Sec. 5743.02. To provide revenues for the general revenue	2191
fund, an excise tax on sales of cigarettes is hereby levied at the	2192
rate of ~~eleven~~twenty-seven and one-half mills on each cigarette.	2193

Only one sale of the same article shall be used in computing	2194
the amount of tax due.	2195

The treasurer of state shall place to the credit of the tax	2196
refund fund created by section 5703.052 of the Revised Code, out	2197
of receipts from the tax levied by this section, amounts equal to	2198
the refunds certified by the tax commissioner pursuant to section	2199
5743.05 of the Revised Code. The balance of taxes collected under	2200
such section, after the credits to the tax refund fund, shall be	2201
paid into the general revenue fund.	2202

Sec. 5743.03. Except as provided in section 5743.04 of the	2203
Revised Code, the taxes imposed under sections 5743.02, ~~5743.023,~~	2204
5743.024, and 5743.026 of the Revised Code shall be paid by the	2205
purchase of stamps. A stamp shall be affixed to each package of	2206
an aggregate denomination not less than the amount of the tax upon	2207
the contents thereof. The stamp, so affixed, shall be prima-facie	2208
evidence of payment of the tax. Except as is provided in the	2209
rules prescribed by the tax commissioner under authority of	2210
sections 5743.01 to 5743.20 of the Revised Code, and unless such	2211
stamps have been previously affixed, they shall be so affixed by	2212
each wholesale dealer, and canceled by writing or stamping across	2213
the face thereof the number assigned to such wholesale dealer by	2214
the tax commissioner for that purpose, prior to the delivery of	2215
any cigarettes to any person in this state, or in the case of a	2216
tax levied pursuant to section 5743.024 or 5743.026 of the Revised	2217
Code, prior to the delivery of cigarettes to any person in the	2218
county in which the tax is levied.	2219

Except as provided in the rules prescribed by the	2220
commissioner under authority of sections 5743.01 to 5743.20 of the	2221
Revised Code, and unless such stamps have been previously affixed,	2222
each retail dealer shall within twenty-four hours after the	2223
receipt of any cigarettes at the retail dealer's place of business	2224
and prior to the delivery thereof to any person in this state, or	2225
in the case of a tax levied pursuant to section 5743.024 or	2226
5743.026 of the Revised Code prior to the delivery thereof to any	2227
person in the county in which the tax is levied, so affix such	2228
stamps and cancel same by writing or stamping across the face	2229
thereof the number assigned to such retail dealer by the	2230
commissioner for that purpose.	2231

Whenever any cigarettes are found in the place of business of	2232
any retail dealer without proper tax stamps affixed thereto and	2233
canceled, it is presumed that such cigarettes are kept therein in	2234
violation of sections 5743.01 to 5743.20 of the Revised Code.	2235

Each wholesale dealer and each retail dealer who purchases	2236
cigarettes without proper tax stamps affixed thereto shall, on or	2237
before the thirty-first day of the month following the close of	2238
each semiannual period, which period shall end on the thirtieth	2239
day of June and the thirty-first day of December of each year,	2240
make and file a return of the preceding semiannual period, on such	2241
form as is prescribed by the tax commissioner, showing the	2242
dealer's entire purchases and sales of cigarettes and stamps or	2243
impressions for such semiannual period and accurate inventories as	2244
of the beginning and end of each semiannual period of cigarettes,	2245
stamped or unstamped; cigarette tax stamps affixed or unaffixed	2246
and unused meter impressions; and such other information as the	2247
commissioner finds necessary to the proper administration of	2248
sections 5743.01 to 5743.20 of the Revised Code. The commissioner	2249
may extend the time for making and filing returns and may remit	2250
all or any part of amounts of penalties which may become due under	2251
sections 5743.01 to 5743.20 of the Revised Code. The wholesale or	2252
retail dealer shall deliver the return together with a remittance	2253
of the tax deficiency reported thereon to the treasurer of state.	2254
The treasurer of state shall stamp or otherwise mark on the return	2255
the date it was received and shall also show thereon by stamp or	2256
otherwise a payment or nonpayment of the deficiency shown by the	2257
return. Thereafter, the treasurer of state shall immediately	2258
transmit all returns filed under this section to the commissioner.	2259
Any wholesale or retail dealer who fails to file a return under	2260
this section and the rules of the commissioner may be required,	2261
for each day the dealer so fails, to forfeit and pay into the	2262
state treasury the sum of one dollar as revenue arising from the	2263
tax imposed by sections 5743.01 to 5743.20 of the Revised Code and	2264
such sum may be collected by assessment in the manner provided in	2265
section 5743.081 of the Revised Code. If the commissioner finds	2266
it necessary in order to insure the payment of the tax imposed by	2267
sections 5743.01 to 5743.20 of the Revised Code, the commissioner	2268
may require returns and payments to be made other than	2269
semiannually. The returns shall be signed by the wholesale or	2270
retail dealer or an authorized agent thereof.	2271

Sec. 5743.04. The tax commissioner shall design and procure	2272
the stamps provided for in section 5743.03 of the Revised Code and	2273
shall enforce and administer sections 5743.01 to 5743.44 of the	2274
Revised Code. With respect to packages containing any number of	2275
cigarettes other than twenty, if the commissioner finds that it is	2276
practicable to collect the taxes levied under sections 5743.02,	2277
~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code by any method	2278
other than that provided in this section and section 5743.03 of	2279
the Revised Code, hethe commissioner may by rule prescribe such	2280
other method for payment of the taxes upon such packages of	2281
cigarettes as will adequately protect the revenue; provided, that	2282
in any case where the commissioner prescribes that the taxes upon	2283
such packages of cigarettes shall be paid on the basis of returns	2284
filed by a wholesale or retail dealer, said returns, together with	2285
a remittance of all taxes due as shown thereon, shall be filed	2286
with the treasurer of state not later than the tenth day of the	2287
month following the month in which such cigarettes are sold in	2288
this state. The commissioner may promulgate rules in accordance	2289
with sections 119.01 to 119.13 of the Revised Code as hethe	2290
commissioner deems necessary to carry out sections 5743.01 to	2291
5743.44 of the Revised Code and may adopt different detailed rules	2292
applicable to diverse methods and conditions of sale of	2293
cigarettes, prescribing, in each class of cases, upon whom, as	2294
between the wholesale dealer and the retail dealer, the primary	2295
duty of affixing stamps shall rest, and the manner in which stamps	2296
shall be affixed. A copy of such rules shall be furnished to	2297
every licensed dealer as provided in sections 119.01 to 119.13 of	2298
the Revised Code. Any such rule so furnished which excuses a	2299
wholesale dealer from affixing stamps under the circumstances of	2300
the particular case shall be a defense in the prosecution of such	2301
dealer for violation of section 5743.03 of the Revised Code.	2302

The commissioner, ~~if he determines~~after determining that it	2303
is practicable to evidence payment of the taxes levied under	2304
sections 5743.02, ~~5743.023,~~ 5743.024, and 5743.026 of the Revised	2305
Code by impression made by a metering device, shall by resolution	2306
provide that such metering device may be used in lieu of the	2307
stamps otherwise provided for in section 5743.03 of the Revised	2308
Code. The commissioner may authorize any wholesale or retail	2309
dealer to use the metering device approved by ~~him~~the	2310
commissioner. Such device before being used shall be sealed by	2311
the treasurer of state, and shall be used only in accordance with	2312
the rules prescribed by the commissioner.	2313

Wholesale and retail dealers authorized to use said device	2314
shall prepay the tax represented by meter impressions and shall	2315
deliver the metering device to the treasurer of state or county	2316
treasurer in the county in which the place of business of any	2317
wholesaler or retailer is located if such treasurer is designated	2318
by the treasurer of state, who shall seal the meter in accordance	2319
with the prepayments so made.	2320

Sec. 5743.08. Whenever the tax commissioner discovers any	2321
cigarettes, subject to the taxes levied under section 5743.02,	2322
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code, and upon	2323
which the taxes have not been paid, the commissioner may seize and	2324
take possession of such cigarettes, which shall thereupon be	2325
forfeited to the state, and the commissioner may within a	2326
reasonable time thereafter sell the forfeited cigarettes. From	2327
the proceeds of the sale, the tax commissioner shall pay the costs	2328
incurred in such proceedings, and any proceeds remaining after the	2329
costs are paid shall be considered as revenue arising from the	2330
tax; provided that the seizure and sale shall not be deemed to	2331
relieve any person from the fine or imprisonment provided for	2332
violation of sections 5743.01 to 5743.20 of the Revised Code. The	2333
sale shall be made where it is most convenient and economical. The	2334
tax commissioner may order the destruction of the forfeited	2335
cigarettes if the quantity or quality of the cigarettes is not	2336
sufficient to warrant their sale.	2337

Sec. 5743.081. (A) If any wholesale dealer or retail dealer	2338
fails to pay the tax levied under ~~sections~~section 5743.02,	2339
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code as required by	2340
sections 5743.01 to 5743.20 of the Revised Code, and by the rules	2341
of the tax commissioner, or fails to collect the tax from the	2342
purchaser or consumer, the commissioner may make an assessment	2343
against the wholesale or retail dealer based upon any information	2344
in the commissioner's possession.	2345

The commissioner may make an assessment against any wholesale	2346
or retail dealer who fails to file a return required by section	2347
5743.03 or 5743.025 of the Revised Code.	2348

No assessment shall be made against any wholesale or retail	2349
dealer for any taxes imposed under ~~sections~~section 5743.02,	2350
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code more than	2351
three years after the last day of the calendar month which	2352
immediately follows the semiannual period prescribed in section	2353
5743.03 of the Revised Code in which the sale was made, or more	2354
than three years after the semiannual return for such period is	2355
filed, whichever is later. This section does not bar an	2356
assessment against any wholesale or retail dealer who fails to	2357
file a return as required by section 5743.03 or 5743.025 of the	2358
Revised Code, or who files a fraudulent return.	2359

A penalty of up to thirty per cent may be added to the amount	2360
of every assessment made under this section. The commissioner may	2361
adopt rules providing for the imposition and remission of	2362
penalties added to assessments made under this section.	2363

The commissioner shall give the party assessed written notice	2364
of the assessment as provided in section 5703.37 of the Revised	2365
Code. The notice shall specify separately any portion of the	2366
assessment that represents a county tax.	2367

(B) Unless the party to whom the notice of assessment is	2368
directed files with the commissioner within sixty days after	2369
service of the notice of assessment, either personally or by	2370
certified mail, a petition for reassessment in writing, signed by	2371
the party assessed, or by the party's authorized agent having	2372
knowledge of the facts, the assessment shall become final and the	2373
amount of the assessment shall be due and payable from the party	2374
assessed to the treasurer of state. The petition shall indicate	2375
the objections of the party assessed, but additional objections	2376
may be raised in writing if received prior to the date shown on	2377
the final determination by the commissioner.	2378

Unless the petitioner waives a hearing, the commissioner	2379
shall assign a time and place for the hearing on the petition and	2380
notify the petitioner of the time and place of the hearing by	2381
personal service or certified mail, but the commissioner may	2382
continue the hearing from time to time if necessary.	2383

The commissioner may make such correction to an assessment as	2384
the commissioner finds proper. The commissioner shall serve a	2385
copy of the final determination on the petitioner by personal	2386
service or certified mail, and the commissioner's decision in the	2387
matter shall be final, subject to appeal as provided in section	2388
5717.02 of the Revised Code. Only objections decided on the	2389
merits by the board of tax appeals or a court shall be given	2390
collateral estoppel or res judicata effect in considering an	2391
application for refund of amounts paid pursuant to the assessment.	2392

(C) After an assessment becomes final, if any portion of the	2393
assessment remains unpaid, including accrued interest, a certified	2394
copy of the commissioner's entry making the assessment final may	2395
be filed in the office of the clerk of the court of common pleas	2396
in the county in which the wholesale or retail dealer's place of	2397
business is located or the county in which the party assessed	2398
resides. If the party assessed maintains no place of business in	2399
this state and is not a resident of this state, the certified copy	2400
of the entry may be filed in the office of the clerk of the court	2401
of common pleas of Franklin county.	2402

The clerk, immediately upon the filing of the commissioner's	2403
entry, shall enter a judgment for the state against the party	2404
assessed in the amount shown on the entry. The judgment may be	2405
filed by the clerk in a loose-leaf book entitled "special	2406
judgments for state cigarette sales tax," and shall have the same	2407
effect as other judgments. Execution shall issue upon the	2408
judgment upon the request of the tax commissioner, and all laws	2409
applicable to sales on execution shall apply to sales made under	2410
the judgment except as otherwise provided in sections 5743.01 to	2411
5743.20 of the Revised Code.	2412

The portion of the assessment not paid within sixty days	2413
after the assessment was issued shall bear interest at the rate	2414
per annum prescribed by section 5703.47 of the Revised Code from	2415
the day the tax commissioner issues the assessment until it is	2416
paid. Interest shall be paid in the same manner as the tax and	2417
may be collected by the issuance of an assessment under this	2418
section.	2419

(D) All money collected by the commissioner under this	2420
section shall be paid to the treasurer of state, and when paid	2421
shall be considered as revenue arising from the taxes imposed by	2422
sections 5743.01 to 5743.20 of the Revised Code.	2423

Sec. 5743.12. No person shall make a false entry upon an	2424
invoice, package, or container of cigarettes upon which an entry	2425
is required by sections 5743.01 to 5743.20 of the Revised Code,	2426
nor shall any person present any such false entry for the	2427
inspection of the tax commissioner with intent to evade the tax	2428
levied under section 5743.02, ~~5743.023,~~ 5743.024, or 5743.026 of	2429
the Revised Code.	2430

Sec. 5743.13. No person shall falsely or fraudulently make,	2431
forge, alter, or counterfeit any stamp prescribed by the tax	2432
commissioner under section 5743.03 of the Revised Code, or cause	2433
to be falsely or fraudulently made, forged, altered, or	2434
counterfeited any such stamp, or possess any counterfeiting	2435
device, or knowingly and willfully utter, publish, pass, or tender	2436
as true, any such false, altered, forged, or counterfeited stamp,	2437
or use more than once any such stamp for the purpose of evading	2438
the tax levied under section 5743.02, ~~5743.023,~~ 5743.024, or	2439
5743.026 of the Revised Code.	2440

Sec. 5743.14. (A) The tax commissioner may inspect any	2441
place where cigarettes subject to the tax levied under section	2442
5743.02, ~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code are	2443
sold or stored.	2444

(B) No person shall prevent or hinder the tax commissioner	2445
from making a full inspection of any place where cigarettes	2446
subject to the tax levied under section 5743.02, ~~5743.023,~~	2447
5743.024, or 5743.026 of the Revised Code are sold or stored, or	2448
prevent or hinder the full inspection of invoices, books, records,	2449
or papers required to be kept by sections 5743.01 to 5743.20 of	2450
the Revised Code.	2451

Sec. 5743.32. To provide revenue for the general revenue	2452
fund of the state, an excise tax is hereby levied on the use,	2453
consumption, or storage for consumption of cigarettes by consumers	2454
in this state at the rate of ~~eleven~~twenty-seven and one-half	2455
mills on each cigarette. The tax shall not apply if the tax	2456
levied by section 5743.02 of the Revised Code has been paid.	2457

The money received into the state treasury from the excise	2458
tax levied by this section shall be credited to the general	2459
revenue fund.	2460

Sec. 5743.33. Every person who has acquired cigarettes for	2461
use, storage, or other consumption subject to the tax levied under	2462
section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the Revised	2463
Code, shall, on or before the fifteenth day of the month following	2464
receipt of such cigarettes, file with the tax commissioner a	2465
return showing the amount of cigarettes acquired, together with	2466
remittance of the tax thereon. No such person shall transport	2467
within this state, cigarettes that have a wholesale value in	2468
excess of sixty dollars, unless hethat person has obtained	2469
consent to transport the cigarettes from the department of	2470
taxation prior to such transportation. Such consent shall not be	2471
required if the applicable taxes levied under sections 5743.02,	2472
~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code have been	2473
paid. Application for the consent shall be in the form prescribed	2474
by the tax commissioner.	2475

Every person transporting such cigarettes shall possess the	2476
consent while transporting or possessing the cigarettes within	2477
this state and shall produce the consent upon request of any law	2478
enforcement officer or authorized agent of the tax commissioner.	2479

Any person transporting such cigarettes without the consent	2480
required by this section, shall be subject to the provisions of	2481
this chapter, including the applicable taxes imposed by sections	2482
5743.02, ~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code.	2483

Sec. 5743.34. If any person required to pay the tax levied	2484
under section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the	2485
Revised Code, fails to make remittance, the tax commissioner may	2486
issue an assessment against that person based on any information	2487
in the commissioner's possession.	2488

Sections 5743.081 and 5743.082 of the Revised Code relating	2489
to the assessments or findings, appeals from assessments or	2490
findings, the effect of assessments or findings before or after	2491
hearing and before or after filing the same in the office of the	2492
clerk of the court of common pleas, and all sections relating to	2493
the procedure, authority, duties, liabilities, powers, and	2494
privileges of the person assessed, the commissioner, the clerk,	2495
and all other public officials, shall be applicable to assessments	2496
made pursuant to this section.	2497

Sec. 5743.35. No person required by section 5743.33 of the	2498
Revised Code to file a return with the tax commissioner shall fail	2499
to make such return, or fail to pay the applicable taxes levied	2500
under section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the	2501
Revised Code, or fail to pay any lawful assessment issued by the	2502
commissioner.	2503

Sec. 5747.01. Except as otherwise expressly provided or	2504
clearly appearing from the context, any term used in this chapter	2505
has the same meaning as when used in a comparable context in the	2506
Internal Revenue Code, and all other statutes of the United States	2507
relating to federal income taxes.	2508

As used in this chapter:

2509

(A) "Adjusted gross income" or "Ohio adjusted gross income"	2510
means adjusted gross income as defined and used in the Internal	2511
Revenue Code, adjusted as provided in this section:	2512

(1) Add interest or dividends on obligations or securities	2513
of any state or of any political subdivision or authority of any	2514
state, other than this state and its subdivisions and authorities.	2515

(2) Add interest or dividends on obligations of any	2516
authority, commission, instrumentality, territory, or possession	2517
of the United States that are exempt from federal income taxes but	2518
not from state income taxes.	2519

(3) Deduct interest or dividends on obligations of the	2520
United States and its territories and possessions or of any	2521
authority, commission, or instrumentality of the United States to	2522
the extent included in federal adjusted gross income but exempt	2523
from state income taxes under the laws of the United States.	2524

(4) Deduct disability and survivor's benefits to the extent	2525
included in federal adjusted gross income.	2526

(5) Deduct benefits under Title II of the Social Security	2527
Act and tier 1 railroad retirement benefits to the extent included	2528
in federal adjusted gross income under section 86 of the Internal	2529
Revenue Code.	2530

(6) ~~Add, in~~In the case of a taxpayer who is a beneficiary of	2531
a trust that makes an accumulation distribution as defined in	2532
section 665 of the Internal Revenue Code, add, for the	2533
beneficiary's taxable years beginning before 2002 or after 2004,	2534
the portion, if any, of such distribution that does not exceed the	2535
undistributed net income of the trust for the three taxable years	2536
preceding the taxable year in which the distribution is made to	2537
the extent that the portion was not included in the trust's	2538
taxable income for any of the trust's taxable years beginning in	2539
2002, 2003, or 2004. "Undistributed net income of a trust" means	2540
the taxable income of the trust increased by (a)(i) the additions	2541
to adjusted gross income required under division (A) of this	2542
section and (ii) the personal exemptions allowed to the trust	2543
pursuant to section 642(b) of the Internal Revenue Code, and	2544
decreased by (b)(i) the deductions to adjusted gross income	2545
required under division (A) of this section, (ii) the amount of	2546
federal income taxes attributable to such income, and (iii) the	2547
amount of taxable income that has been included in the adjusted	2548
gross income of a beneficiary by reason of a prior accumulation	2549
distribution. Any undistributed net income included in the	2550
adjusted gross income of a beneficiary shall reduce the	2551
undistributed net income of the trust commencing with the earliest	2552
years of the accumulation period.	2553

(7) Deduct the amount of wages and salaries, if any, not	2554
otherwise allowable as a deduction but that would have been	2555
allowable as a deduction in computing federal adjusted gross	2556
income for the taxable year, had the targeted jobs credit allowed	2557
and determined under sections 38, 51, and 52 of the Internal	2558
Revenue Code not been in effect.	2559

(8) Deduct any interest or interest equivalent on public	2560
obligations and purchase obligations to the extent included in	2561
federal adjusted gross income.	2562

(9) Add any loss or deduct any gain resulting from the sale,	2563
exchange, or other disposition of public obligations to the extent	2564
included in federal adjusted gross income.	2565

(10) Deduct or add amounts, as provided under section	2566
5747.70 of the Revised Code, related to contributions to variable	2567
college savings program accounts made or tuition credits purchased	2568
pursuant to Chapter 3334. of the Revised Code.	2569

(11)(a) Deduct, to the extent not otherwise allowable as a	2570
deduction or exclusion in computing federal or Ohio adjusted gross	2571
income for the taxable year, the amount the taxpayer paid during	2572
the taxable year for medical care insurance and qualified	2573
long-term care insurance for the taxpayer, the taxpayer's spouse,	2574
and dependents. No deduction for medical care insurance under	2575
division (A)(11) of this section shall be allowed either to any	2576
taxpayer who is eligible to participate in any subsidized health	2577
plan maintained by any employer of the taxpayer or of the	2578
taxpayer's spouse, or to any taxpayer who is entitled to, or on	2579
application would be entitled to, benefits under part A of Title	2580
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	2581
301, as amended. For the purposes of division (A)(11)(a) of this	2582
section, "subsidized health plan" means a health plan for which	2583
the employer pays any portion of the plan's cost. The deduction	2584
allowed under division (A)(11)(a) of this section shall be the net	2585
of any related premium refunds, related premium reimbursements, or	2586
related insurance premium dividends received during the taxable	2587
year.	2588

(b) Deduct, to the extent not otherwise deducted or excluded	2589
in computing federal or Ohio adjusted gross income during the	2590
taxable year, the amount the taxpayer paid during the taxable	2591
year, not compensated for by any insurance or otherwise, for	2592
medical care of the taxpayer, the taxpayer's spouse, and	2593
dependents, to the extent the expenses exceed seven and one-half	2594
per cent of the taxpayer's federal adjusted gross income.	2595

(c) For purposes of division (A)(11) of this section,	2596
"medical care" has the meaning given in section 213 of the	2597
Internal Revenue Code, subject to the special rules, limitations,	2598
and exclusions set forth therein, and "qualified long-term care"	2599
has the same meaning given in section 7702(B)(b) of the Internal	2600
Revenue Code.	2601

(12)(a) Deduct any amount included in federal adjusted gross	2602
income solely because the amount represents a reimbursement or	2603
refund of expenses that in any year the taxpayer had deducted as	2604
an itemized deduction pursuant to section 63 of the Internal	2605
Revenue Code and applicable United States department of the	2606
treasury regulations. The deduction otherwise allowed under	2607
division (A)(12)(a) of this section shall be reduced to the extent	2608
the reimbursement is attributable to an amount the taxpayer	2609
deducted under this section in any taxable year.	2610

(b) Add any amount not otherwise included in Ohio adjusted	2611
gross income for any taxable year to the extent that the amount is	2612
attributable to the recovery during the taxable year of any amount	2613
deducted or excluded in computing federal or Ohio adjusted gross	2614
income in any taxable year.	2615

(13) Deduct any portion of the deduction described in	2616
section 1341(a)(2) of the Internal Revenue Code, for repaying	2617
previously reported income received under a claim of right, that	2618
meets both of the following requirements:	2619

(a) It is allowable for repayment of an item that was	2620
included in the taxpayer's adjusted gross income for a prior	2621
taxable year and did not qualify for a credit under division (A)	2622
or (B) of section 5747.05 of the Revised Code for that year;	2623

(b) It does not otherwise reduce the taxpayer's adjusted	2624
gross income for the current or any other taxable year.	2625

(14) Deduct an amount equal to the deposits made to, and net	2626
investment earnings of, a medical savings account during the	2627
taxable year, in accordance with section 3924.66 of the Revised	2628
Code. The deduction allowed by division (A)(14) of this section	2629
does not apply to medical savings account deposits and earnings	2630
otherwise deducted or excluded for the current or any other	2631
taxable year from the taxpayer's federal adjusted gross income.	2632

(15)(a) Add an amount equal to the funds withdrawn from a	2633
medical savings account during the taxable year, and the net	2634
investment earnings on those funds, when the funds withdrawn were	2635
used for any purpose other than to reimburse an account holder	2636
for, or to pay, eligible medical expenses, in accordance with	2637
section 3924.66 of the Revised Code;	2638

(b) Add the amounts distributed from a medical savings	2639
account under division (A)(2) of section 3924.68 of the Revised	2640
Code during the taxable year.	2641

(16) Add any amount claimed as a credit under section	2642
5747.059 of the Revised Code to the extent that such amount	2643
satisfies either of the following:	2644

(a) The amount was deducted or excluded from the computation	2645
of the taxpayer's federal adjusted gross income as required to be	2646
reported for the taxpayer's taxable year under the Internal	2647
Revenue Code;	2648

(b) The amount resulted in a reduction of the taxpayer's	2649
federal adjusted gross income as required to be reported for any	2650
of the taxpayer's taxable years under the Internal Revenue Code.	2651

(17) Deduct the amount contributed by the taxpayer to an	2652
individual development account program established by a county	2653
department of job and family services pursuant to sections 329.11	2654
to 329.14 of the Revised Code for the purpose of matching funds	2655
deposited by program participants. On request of the tax	2656
commissioner, the taxpayer shall provide any information that, in	2657
the tax commissioner's opinion, is necessary to establish the	2658
amount deducted under division (A)(17) of this section.	2659

(18) Beginning in taxable year 2001, if the taxpayer is	2660
married and files a joint return and the combined federal adjusted	2661
gross income of the taxpayer and the taxpayer's spouse for the	2662
taxable year does not exceed one hundred thousand dollars, or if	2663
the taxpayer is single and has a federal adjusted gross income for	2664
the taxable year not exceeding fifty thousand dollars, deduct	2665
amounts paid during the taxable year for qualified tuition and	2666
fees paid to an eligible institution for the taxpayer, the	2667
taxpayer's spouse, or any dependent of the taxpayer, who is a	2668
resident of this state and is enrolled in or attending a program	2669
that culminates in a degree or diploma at an eligible institution.	2670
The deduction may be claimed only to the extent that qualified	2671
tuition and fees are not otherwise deducted or excluded for any	2672
taxable year from federal or Ohio adjusted gross income. The	2673
deduction may not be claimed for educational expenses for which	2674
the taxpayer claims a credit under section 5747.27 of the Revised	2675
Code.	2676

(19) Add any reimbursement received during the taxable year	2677
of any amount the taxpayer deducted under division (A)(18) of this	2678
section in any previous taxable year to the extent the amount is	2679
not otherwise included in Ohio adjusted gross income.	2680

(20)(a) Add five-sixths of the amount of depreciation	2681
expense allowed by subsection (k) of section 168 of the Internal	2682
Revenue Code, including the taxpayer's proportionate or	2683
distributive share of the amount of depreciation expense allowed	2684
by that subsection to a pass-through entity in which the taxpayer	2685
has a direct or indirect ownership interest. The tax	2686
commissioner, under procedures established by the commissioner,	2687
may waive the add-back related to a pass-through entity if the	2688
taxpayer owns, directly or indirectly, less than five per cent of	2689
the pass-through entity.	2690

(b) Nothing in division (A)(20) of this section shall be	2691
construed to adjust or modify the adjusted basis of any asset.	2692

(c) To the extent the add-back required under division	2693
(A)(20)(a) of this section is attributable to property generating	2694
nonbusiness income or loss allocated under section 5747.20 of the	2695
Revised Code, the add-back shall be sitused to the same location	2696
as the nonbusiness income or loss generated by the property for	2697
the purpose of determining the credit under division (A) of	2698
section 5747.05 of the Revised Code. Otherwise, the add-back	2699
shall be apportioned, subject to one or more of the four	2700
alternative methods of apportionment enumerated in section 5747.21	2701
of the Revised Code.	2702

(21)(a) If the taxpayer was required to add an amount under	2703
division (A)(20)(a) of this section for a taxable year, deduct	2704
one-fifth of the amount so added for each of the five succeeding	2705
taxable years.	2706

(b) If the amount deducted under division (A)(21)(a) of	2707
this section is attributable to an add-back allocated under	2708
division (A)(20)(c) of this section, the amount deducted shall be	2709
sitused to the same location. Otherwise, the add-back shall be	2710
apportioned using the apportionment factors for the taxable year	2711
in which the deduction is taken, subject to one or more of the	2712
four alternative methods of apportionment enumerated in section	2713
5747.21 of the Revised Code.	2714

(B) "Business income" means income arising from	2715
transactions, activities, and sources in the regular course of a	2716
trade or business and includes income from real property, tangible	2717
property, and intangible property if the acquisition, rental,	2718
management, and disposition of the property constitute integral	2719
parts of the regular course of a trade or business operation.	2720
"Business income" includes income, including gain or loss, from a	2721
partial or complete liquidation of a business, including, but not	2722
limited to, gain or loss from the sale or other disposition of	2723
goodwill.	2724

(C) "Nonbusiness income" means all income other than	2725
business income and may include, but is not limited to,	2726
compensation, rents and royalties from real or tangible personal	2727
property, capital gains, interest, dividends and distributions,	2728
patent or copyright royalties, or lottery winnings, prizes, and	2729
awards.	2730

(D) "Compensation" means any form of remuneration paid to an	2731
employee for personal services.	2732

(E) "Fiduciary" means a guardian, trustee, executor,	2733
administrator, receiver, conservator, or any other person acting	2734
in any fiduciary capacity for any individual, trust, or estate.	2735

(F) "Fiscal year" means an accounting period of twelve	2736
months ending on the last day of any month other than December.	2737

(G) "Individual" means any natural person.

2738

(H) "Internal Revenue Code" means the "Internal Revenue Code	2739
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2740

(I) "Resident" means:

2741

(1) An individual who is domiciled in this state, subject to	2742
section 5747.24 of the Revised Code;	2743

(2) The estate of a decedent who at the time of death was	2744
domiciled in this state. The domicile tests of section 5747.24 of	2745
the Revised Code and any election under section 5747.25 of the	2746
Revised Code are not controlling for purposes of division (I)(2)	2747
of this section.	2748

(3) Division (I)(3) of this section applies only to taxable	2749
years of a trust beginning in 2002, 2003, or 2004.	2750

A trust that, in whole or part, resides in this state. If	2751
only part of a trust resides in this state, the trust is a	2752
resident only with respect to that part. For the purposes of	2753
division (I)(3) of this section, a trust resides in this state to	2754
the extent that it consists, directly or indirectly, in whole or	2755
in part, of the net current value, adjusted for any profits,	2756
gains, or losses, of assets or liabilities that were transferred	2757
to the trust by any of the following:	2758

(a) The will of a decedent who was domiciled in this state	2759
at the time of the decedent's death;	2760

(b) A person who is domiciled in this state if the trust or	2761
part of the trust is not irrevocable;	2762

(c) A person who was domiciled in this state when the trust	2763
or part of the trust became irrevocable, but only if, for all or	2764
some portion of the current taxable year of the trust, at least	2765
one beneficiary of the trust is a resident for the purposes of	2766
this chapter.	2767

For the purpose of divisions (I)(3)(b) and (c) of this	2768
section, the transfer of net assets to a trust is irrevocable to	2769
the extent that the transferor is not considered to be the owner	2770
of the net assets of the trust under sections 671 to 678 of the	2771
Internal Revenue Code.	2772

The tax commissioner may adopt rules to ascertain the part	2773
of a trust residing in this state under this division.	2774

(J) "Nonresident" means an individual or estate that is not	2775
a resident. An individual who is a resident for only part of a	2776
taxable year is a nonresident for the remainder of that taxable	2777
year.	2778

(K) "Pass-through entity" has the same meaning as in section	2779
5733.04 of the Revised Code.	2780

(L) "Return" means the notifications and reports required to	2781
be filed pursuant to this chapter for the purpose of reporting the	2782
tax due and includes declarations of estimated tax when so	2783
required.	2784

(M) "Taxable year" means the calendar year or the taxpayer's	2785
fiscal year ending during the calendar year, or fractional part	2786
thereof, upon which the adjusted gross income is calculated	2787
pursuant to this chapter.	2788

(N) "Taxpayer" means any person subject to the tax imposed	2789
by section 5747.02 of the Revised Code or any pass-through entity	2790
that makes the election under division (D) of section 5747.08 of	2791
the Revised Code.	2792

(O) "Dependents" means dependents as defined in the Internal	2793
Revenue Code and as claimed in the taxpayer's federal income tax	2794
return for the taxable year or which the taxpayer would have been	2795
permitted to claim had the taxpayer filed a federal income tax	2796
return.	2797

(P) "Principal county of employment" means, in the case of a	2798
nonresident, the county within the state in which a taxpayer	2799
performs services for an employer or, if those services are	2800
performed in more than one county, the county in which the major	2801
portion of the services are performed.	2802

(Q) As used in sections 5747.50 to 5747.55 of the Revised	2803
Code:	2804

(1) "Subdivision" means any county, municipal corporation,	2805
park district, or township.	2806

(2) "Essential local government purposes" includes all	2807
functions that any subdivision is required by general law to	2808
exercise, including like functions that are exercised under a	2809
charter adopted pursuant to the Ohio Constitution.	2810

(R) "Overpayment" means any amount already paid that exceeds	2811
the figure determined to be the correct amount of the tax.	2812

(S) "Taxable income" applies only to estates ~~only~~and	2813
trusts, and means taxable income as defined and used in the	2814
Internal Revenue Code adjusted as follows:	2815

(1) Add interest or dividends on obligations or securities	2816
of any state or of any political subdivision or authority of any	2817
state, other than this state and its subdivisions and authorities;	2818

(2) Add interest or dividends on obligations of any	2819
authority, commission, instrumentality, territory, or possession	2820
of the United States that are exempt from federal income taxes but	2821
not from state income taxes;	2822

(3) Add the amount of personal exemption allowed to the	2823
estate pursuant to section 642(b) of the Internal Revenue Code;	2824

(4) Deduct interest or dividends on obligations of the	2825
United States and its territories and possessions or of any	2826
authority, commission, or instrumentality of the United States	2827
that are exempt from state taxes under the laws of the United	2828
States;	2829

(5) Deduct the amount of wages and salaries, if any, not	2830
otherwise allowable as a deduction but that would have been	2831
allowable as a deduction in computing federal taxable income for	2832
the taxable year, had the targeted jobs credit allowed under	2833
sections 38, 51, and 52 of the Internal Revenue Code not been in	2834
effect;	2835

(6) Deduct any interest or interest equivalent on public	2836
obligations and purchase obligations to the extent included in	2837
federal taxable income;	2838

(7) Add any loss or deduct any gain resulting from sale,	2839
exchange, or other disposition of public obligations to the extent	2840
included in federal taxable income;	2841

(8) Except in the case of the final return of an estate, add	2842
any amount deducted by the taxpayer on both its Ohio estate tax	2843
return pursuant to section 5731.14 of the Revised Code, and on its	2844
federal income tax return in determining either federal adjusted	2845
gross income or federal taxable income;	2846

(9)(a) Deduct any amount included in federal taxable income	2847
solely because the amount represents a reimbursement or refund of	2848
expenses that in a previous year the decedent had deducted as an	2849
itemized deduction pursuant to section 63 of the Internal Revenue	2850
Code and applicable treasury regulations. The deduction otherwise	2851
allowed under division (S)(9)(a) of this section shall be reduced	2852
to the extent the reimbursement is attributable to an amount the	2853
taxpayer or decedent deducted under this section in any taxable	2854
year.	2855

(b) Add any amount not otherwise included in Ohio taxable	2856
income for any taxable year to the extent that the amount is	2857
attributable to the recovery during the taxable year of any amount	2858
deducted or excluded in computing federal or Ohio taxable income	2859
in any taxable year.	2860

(10) Deduct any portion of the deduction described in	2861
section 1341(a)(2) of the Internal Revenue Code, for repaying	2862
previously reported income received under a claim of right, that	2863
meets both of the following requirements:	2864

(a) It is allowable for repayment of an item that was	2865
included in the taxpayer's taxable income or the decedent's	2866
adjusted gross income for a prior taxable year and did not qualify	2867
for a credit under division (A) or (B) of section 5747.05 of the	2868
Revised Code for that year.	2869

(b) It does not otherwise reduce the taxpayer's taxable	2870
income or the decedent's adjusted gross income for the current or	2871
any other taxable year.	2872

(11) Add any amount claimed as a credit under section	2873
5747.059 of the Revised Code to the extent that the amount	2874
satisfies either of the following:	2875

(a) The amount was deducted or excluded from the computation	2876
of the taxpayer's federal taxable income as required to be	2877
reported for the taxpayer's taxable year under the Internal	2878
Revenue Code;	2879

(b) The amount resulted in a reduction in the taxpayer's	2880
federal taxable income as required to be reported for any of the	2881
taxpayer's taxable years under the Internal Revenue Code.	2882

(12) Deduct any amount that a trust is required to report as	2883
farm income on its federal income tax return, but only if the	2884
assets of the trust include at least ten acres of land satisfying	2885
the definition of "land devoted exclusively to agricultural use"	2886
under section 5713.30 of the Revised Code, regardless of whether	2887
the land is valued for tax purposes as such land under sections	2888
5713.30 to 5713.38 of the Revised Code. Division (S)(12) of this	2889
section applies only to taxable years of a trust beginning in	2890
2002, 2003, or 2004.	2891

(13) Add the net amount of income described in section 641(c)	2892
of the Internal Revenue Code to the extent that amount is not	2893
included in federal taxable income.	2894

(14) Add or deduct the amount the taxpayer would be required	2895
to add or deduct under division (A)(20) or (21) of this section if	2896
the taxpayer's taxable income were computed in the same manner as	2897
an individual's adjusted gross income is computed under this	2898
section. In the case of a trust, division (S)(14) of this section	2899
applies only to any of the trust's taxable years beginning in	2900
2002, 2003, or 2004.	2901

(T) "School district income" and "school district income	2902
tax" have the same meanings as in section 5748.01 of the Revised	2903
Code.	2904

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	2905
of this section, "public obligations," "purchase obligations," and	2906
"interest or interest equivalent" have the same meanings as in	2907
section 5709.76 of the Revised Code.	2908

(V) "Limited liability company" means any limited liability	2909
company formed under Chapter 1705. of the Revised Code or under	2910
the laws of any other state.	2911

(W) "Pass-through entity investor" means any person who,	2912
during any portion of a taxable year of a pass-through entity, is	2913
a partner, member, shareholder, or investor in that pass-through	2914
entity.	2915

(X) "Banking day" has the same meaning as in section 1304.01	2916
of the Revised Code.	2917

(Y) "Month" means a calendar month.

2918

(Z) "Quarter" means the first three months, the second three	2919
months, the third three months, or the last three months of the	2920
taxpayer's taxable year.	2921

(AA)(1) "Eligible institution" means a state university or	2922
state institution of higher education as defined in section	2923
3345.011 of the Revised Code, or a private, nonprofit college,	2924
university, or other post-secondary institution located in this	2925
state that possesses a certificate of authorization issued by the	2926
Ohio board of regents pursuant to Chapter 1713. of the Revised	2927
Code or a certificate of registration issued by the state board of	2928
proprietary school registration under Chapter 3332. of the Revised	2929
Code.	2930

(2) "Qualified tuition and fees" means tuition and fees	2931
imposed by an eligible institution as a condition of enrollment or	2932
attendance, not exceeding two thousand five hundred dollars in	2933
each of the individual's first two years of post-secondary	2934
education. If the individual is a part-time student, "qualified	2935
tuition and fees" includes tuition and fees paid for the academic	2936
equivalent of the first two years of post-secondary education	2937
during a maximum of five taxable years, not exceeding a total of	2938
five thousand dollars. "Qualified tuition and fees" does not	2939
include:	2940

(a) Expenses for any course or activity involving sports,	2941
games, or hobbies unless the course or activity is part of the	2942
individual's degree or diploma program;	2943

(b) The cost of books, room and board, student activity	2944
fees, athletic fees, insurance expenses, or other expenses	2945
unrelated to the individual's academic course of instruction;	2946

(c) Tuition, fees, or other expenses paid or reimbursed	2947
through an employer, scholarship, grant in aid, or other	2948
educational benefit program.	2949

(BB)(1) "Modified business income" means the business income	2950
included in a trust's taxable income after such taxable income is	2951
first reduced by the qualifying amount, if any.	2952

(2) "Qualifying amount" of a trust means capital gains and	2953
losses from the sale, exchange, or other disposition of equity or	2954
ownership interest in, or debt obligations of, a qualifying	2955
investee to the extent included in the trust's taxable income, but	2956
only if the location of the physical assets of the qualifying	2957
investee is available to the trust.	2958

(3) "Modified nonbusiness income" means a trust's taxable	2959
income other than modified business income and other than the	2960
qualifying amount.	2961

(4) "Modified taxable income" applies only to trusts and	2962
means the sum of the following:	2963

(a) Modified business income multiplied by the fraction	2964
calculated under division (B)(2) of section 5733.05, and applying	2965
section 5733.057 of the Revised Code, as if the trust were a	2966
corporation subject to the tax imposed by section 5733.06 of the	2967
Revised Code;	2968

(b) The qualifying amount multiplied by the ratio of the	2969
book value of the physical assets in this state of the qualifying	2970
investee to the book value of the total physical assets everywhere	2971
of the qualifying investee. If, for a taxable year, the trust	2972
recognizes a qualifying amount with respect to more than one	2973
qualifying investee, the amount described in division (BB)(4)(b)	2974
of this section shall equal the sum of the products so computed	2975
for each such qualifying investee.	2976

(c) Modified nonbusiness income to the extent produced by	2977
assets held by a trust or portion of a trust that is a resident	2978
for the purposes of this chapter.	2979

If the allocation and apportionment of a trust's income	2980
under divisions (BB)(4)(a) and (c) of this section do not fairly	2981
represent the modified taxable income of the trust in this state,	2982
the alternative methods described in division (C) of section	2983
5747.21 of the Revised Code may be applied in the manner and to	2984
the same extent provided in that section.	2985

(5) "Qualifying investee" means a person in which a trust	2986
has an equity or ownership interest, or a person or unit of	2987
government the debt obligations of either of which are owned by a	2988
trust.	2989

(CC) Any term used in this chapter that is not otherwise	2990
defined in this section and that is not used in a comparable	2991
context in the Internal Revenue Code and other statutes of the	2992
United States relating to federal income taxes has the same	2993
meaning as in section 5733.40 of the Revised Code.	2994

Sec. 5747.02. (A) For the purpose of providing revenue for	2995
the support of schools and local government functions, to provide	2996
relief to property taxpayers, to provide revenue for the general	2997
revenue fund, and to meet the expenses of administering the tax	2998
levied by this chapter, there is hereby levied on every	2999
individual, trust, and ~~every~~ estate residing in or earning or	3000
receiving income in this state, on every individual, trust, and	3001
estate earning or receiving lottery winnings, prizes, or awards	3002
pursuant to Chapter 3770. of the Revised Code, and on every	3003
individual, trust, and estate otherwise having nexus with or in	3004
this state under the Constitution of the United States, an annual	3005
tax measured in the case of individuals by adjusted gross income	3006
less an exemption for the taxpayer, the taxpayer's spouse, and	3007
each dependent as provided in section 5747.025 of the Revised	3008
Code,; measured in the case of trusts by modified taxable income	3009
under division (D) of this section; and measured in the case of	3010
estates by taxable income. The tax imposed by this section on the	3011
balance thus obtained is hereby levied as follows:	3012

ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		3013
OR		3014
MODIFIED		3015
TAXABLE INCOME (TRUSTS)		3016
OR		3017
TAXABLE INCOME (ESTATES)	TAX	3018

$5,000 or less	.743%	3019
More than $5,000 but not more than $10,000	$37.15 plus 1.486% of the amount in excess of $5,000	3020
More than $10,000 but not more than $15,000	$111.45 plus 2.972% of the amount in excess of $10,000	3021
More than $15,000 but not more than $20,000	$260.05 plus 3.715% of the amount in excess of $15,000	3022
More than $20,000 but not more than $40,000	$445.80 plus 4.457% of the amount in excess of $20,000	3023
More than $40,000 but not more than $80,000	$1,337.20 plus 5.201% of the amount in excess of $40,000	3024
More than $80,000 but not more than $100,000	$3,417.60 plus 5.943% of the amount in excess of $80,000	3025
More than $100,000 but not more than $200,000	$4,606.20 plus 6.9% of the amount in excess of $100,000	3026
More than $200,000	$11,506.20 plus 7.5% of the amount in excess of $200,000	3027

In July of each year, beginning in 2005, the tax commissioner	3028
shall adjust the income amounts prescribed in this division by	3029
multiplying the percentage increase in the gross domestic product	3030
deflator computed that year under section 5747.025 of the Revised	3031
Code by each of the income amounts resulting from the adjustment	3032
under this division in the preceding year, adding the resulting	3033
product to the corresponding income amount resulting from the	3034
adjustment in the preceding year, and rounding the resulting sum	3035
to the nearest multiple of fifty dollars. The tax commissioner	3036
also shall recompute each of the tax dollar amounts to the extent	3037
necessary to reflect the adjustment of the income amounts. The	3038
rates of taxation shall not be adjusted.	3039

The adjusted amounts apply to taxable years beginning in the	3040
calendar year in which the adjustments are made. The tax	3041
commissioner shall not make such adjustments in any year in which	3042
the amount resulting from the adjustment would be less than the	3043
amount resulting from the adjustment in the preceding year.	3044

(B) If the director of budget and management makes a	3045
certification to the tax commissioner under division (B) of	3046
section 131.44 of the Revised Code, the amount of tax as	3047
determined under division (A) of this section shall be reduced by	3048
the percentage prescribed in that certification for taxable years	3049
beginning in the calendar year in which that certification is	3050
made.	3051

(C) The levy of this tax on income does not prevent a	3052
municipal corporation, a joint economic development zone created	3053
under section 715.691, or a joint economic development district	3054
created under section 715.70 or 715.71 or sections 715.72 to	3055
715.81 of the Revised Code from levying a tax on income.	3056

(D) Division (D) of this section applies only to taxable	3057
years of a trust beginning in 2002, 2003, or 2004.	3058

The tax imposed by this section on a trust shall be computed	3059
by multiplying the modified taxable income of the trust by the	3060
rates prescribed by division (A) of this section.	3061

A credit is allowed against the tax computed under division	3062
(D) of this section equal to the lesser of (1) the tax paid to	3063
another state or the District of Columbia on modified nonbusiness	3064
income of a trust, or (2) the effective tax rate, based on	3065
modified taxable income, multiplied by the modified nonbusiness	3066
income of the trust. The credit applies before any other	3067
applicable credits. The credits enumerated in divisions (A)(1) to	3068
(13) of section 5747.98 of the Revised Code do not apply to a	3069
trust subject to this division.	3070

(E) For the purposes of this section, "trust" means any	3071
trust described in Subchapter J of the Internal Revenue Code,	3072
excluding a trust exempted from taxation under section 501(c)(3)	3073
of Internal Revenue Code.	3074

Sec. 5747.05. As used in this section, "income tax" includes	3075
both a tax on net income and a tax measured by net income.	3076

The following credits shall be allowed against the income tax	3077
imposed by section 5747.02 of the Revised Code on individuals and	3078
estates:	3079

(A)(1) The amount of tax otherwise due under section 5747.02	3080
of the Revised Code on such portion of the adjusted gross income	3081
of any nonresident taxpayer that is not allocable to this state	3082
pursuant to sections 5747.20 to 5747.23 of the Revised Code;	3083

(2) The credit provided under this division shall not exceed	3084
the portion of the total tax due under section 5747.02 of the	3085
Revised Code that the amount of the nonresident taxpayer's	3086
adjusted gross income not allocated to this state pursuant to	3087
sections 5747.20 to 5747.23 of the Revised Code bears to the total	3088
adjusted gross income of the nonresident taxpayer derived from all	3089
sources everywhere.	3090

(3) The tax commissioner may enter into an agreement with	3091
the taxing authorities of any state or of the District of Columbia	3092
that imposes an income tax to provide that compensation paid in	3093
this state to a nonresident taxpayer shall not be subject to the	3094
tax levied in section 5747.02 of the Revised Code so long as	3095
compensation paid in such other state or in the District of	3096
Columbia to a resident taxpayer shall likewise not be subject to	3097
the income tax of such other state or of the District of Columbia.	3098

(B) The lesser of division (B)(1) or (2) of this section:

3099

(1) The amount of tax otherwise due under section 5747.02 of	3100
the Revised Code on such portion of the adjusted gross income of a	3101
resident taxpayer that in another state or in the District of	3102
Columbia is subjected to an income tax. The credit provided under	3103
division (B)(1) of this section shall not exceed the portion of	3104
the total tax due under section 5747.02 of the Revised Code that	3105
the amount of the resident taxpayer's adjusted gross income	3106
subjected to an income tax in the other state or in the District	3107
of Columbia bears to the total adjusted gross income of the	3108
resident taxpayer derived from all sources everywhere.	3109

(2) The amount of income tax liability to another state or	3110
the District of Columbia on the portion of the adjusted gross	3111
income of a resident taxpayer that in another state or in the	3112
District of Columbia is subjected to an income tax. The credit	3113
provided under division (B)(2) of this section shall not exceed	3114
the amount of tax otherwise due under section 5747.02 of the	3115
Revised Code.	3116

(3) If the credit provided under division (B) of this	3117
section is affected by a change in either the portion of adjusted	3118
gross income of a resident taxpayer subjected to an income tax in	3119
another state or the District of Columbia or the amount of income	3120
tax liability that has been paid to another state or the District	3121
of Columbia, the taxpayer shall report the change to the tax	3122
commissioner within sixty days of the change in such form as the	3123
commissioner requires.	3124

(a) In the case of an underpayment, the report shall be	3125
accompanied by payment of any additional tax due as a result of	3126
the reduction in credit together with interest on the additional	3127
tax and is a return subject to assessment under section 5747.13 of	3128
the Revised Code solely for the purpose of assessing any	3129
additional tax due under this division, together with any	3130
applicable penalty and interest. It shall not reopen the	3131
computation of the taxpayer's tax liability under this chapter	3132
from a previously filed return no longer subject to assessment	3133
except to the extent that such liability is affected by an	3134
adjustment to the credit allowed by division (B) of this section.	3135

(b) In the case of an overpayment, an application for refund	3136
may be filed under this division within the sixty day period	3137
prescribed for filing the report even if it is beyond the period	3138
prescribed in section 5747.11 of the Revised Code if it otherwise	3139
conforms to the requirements of such section. An application	3140
filed under this division shall only claim refund of overpayments	3141
resulting from an adjustment to the credit allowed by division (B)	3142
of this section unless it is also filed within the time prescribed	3143
in section 5747.11 of the Revised Code. It shall not reopen the	3144
computation of the taxpayer's tax liability except to the extent	3145
that such liability is affected by an adjustment to the credit	3146
allowed by division (B) of this section.	3147

(C) For a taxpayer sixty-five years of age or older during	3148
the taxable year, a credit for such year equal to fifty dollars	3149
for each return required to be filed under section 5747.08 of the	3150
Revised Code.	3151

(D) A taxpayer sixty-five years of age or older during the	3152
taxable year who has received a lump-sum distribution from a	3153
pension, retirement, or profit-sharing plan in the taxable year	3154
may elect to receive a credit under this division in lieu of the	3155
credit to which hethe taxpayer is entitled under division (C) of	3156
this section. A taxpayer making such election shall receive a	3157
credit for the taxable year equal to fifty dollars times the	3158
taxpayer's expected remaining life as shown by annuity tables	3159
issued under the provisions of the Internal Revenue Code and in	3160
effect for the calendar year which includes the last day of the	3161
taxable year. A taxpayer making an election under this division	3162
is not entitled to the credit authorized under division (C) of	3163
this section in subsequent taxable years except that if such	3164
election was made prior to July 1, 1983, the taxpayer is entitled	3165
to one-half the credit authorized under such division in	3166
subsequent taxable years but may not make another election under	3167
this division.	3168

(E) A taxpayer who is not sixty-five years of age or older	3169
during the taxable year who has received a lump-sum distribution	3170
from a pension, retirement, or profit-sharing plan in a taxable	3171
year ending on or before July 31, 1991, may elect to take a credit	3172
against the tax otherwise due under this chapter for such year	3173
equal to fifty dollars times the expected remaining life of a	3174
taxpayer sixty-five years of age as shown by annuity tables issued	3175
under the provisions of the Internal Revenue Code and in effect	3176
for the calendar year which includes the last day of the taxable	3177
year. A taxpayer making an election under this division is not	3178
entitled to a credit under division (C) or (D) of this section in	3179
any subsequent year except that if such election was made prior to	3180
July 1, 1983, the taxpayer is entitled to one-half the credit	3181
authorized under division (C) of this section in subsequent years	3182
but may not make another election under this division. No	3183
taxpayer may make an election under this division for a taxable	3184
year ending on or after August 1, 1991.	3185

(F) A taxpayer making an election under either division (D)	3186
or (E) of this section may make only one such election in the	3187
taxpayer's lifetime.	3188

(G)(1) On a joint return filed by a husband and wife, each	3189
of whom had adjusted gross income of at least five hundred	3190
dollars, exclusive of interest, dividends and distributions,	3191
royalties, rent, and capital gains, a credit equal to the	3192
percentage shown in the table contained in this division of the	3193
amount of tax due after allowing for any other credit that	3194
precedes the credit under this division in the order required	3195
under section 5747.98 of the Revised Code.	3196

(2) The credit to which a taxpayer is entitled under this	3197
division in any taxable year is the percentage shown in column B	3198
that corresponds with the taxpayer's adjusted gross income, less	3199
exemptions for the taxable year:	3200

3201

IF THE ADJUSTED GROSS INCOME, LESS EXEMPTIONS, FOR THE TAX YEAR IS:

THE CREDIT FOR THE TAXABLE YEAR IS:

3202

$25,000 or less	20%	3203
More than $25,000 but not more than $50,000	15%	3204
More than $50,000 but not more than $75,000	10%	3205
More than $75,000	5%	3206

(3) The credit allowed under this division shall not exceed	3207
six hundred fifty dollars in any taxable year.	3208

(H) No claim for credit under this section shall be allowed	3209
unless the claimant furnishes such supporting information as the	3210
tax commissioner prescribes by rules. Each credit under this	3211
section shall be claimed in the order required under section	3212
5747.98 of the Revised Code.	3213

(I) An individual who is a resident for part of a taxable	3214
year and a nonresident for the remainder of the taxable year is	3215
allowed the credits under divisions (A) and (B) of this section in	3216
accordance with rules prescribed by the tax commissioner. In no	3217
event shall the same income be subject to both credits.	3218

(J) The credit allowed under division (A) of this section	3219
shall be calculated based upon the amount of tax due under section	3220
5747.02 of the Revised Code after subtracting any other credits	3221
that precede the credit under that division in the order required	3222
under section 5747.98 of the Revised Code. The credit allowed	3223
under division (B) of this section shall be calculated based upon	3224
the amount of tax due under section 5747.02 of the Revised Code	3225
after subtracting any other credits that precede the credit under	3226
that division in the order required under section 5747.98 of the	3227
Revised Code.	3228

(K) No credit shall be allowed under division (B) of this	3229
section unless the taxpayer furnishes such proof as the tax	3230
commissioner shall require that the income tax liability has been	3231
paid to another state or the District of Columbia.	3232

(L) No credit shall be allowed under division (B) of this	3233
section for compensation that is not subject to the income tax of	3234
another state or the District of Columbia as the result of an	3235
agreement entered into by the tax commissioner under division	3236
(A)(3) of this section.	3237

Sec. 5747.21. (A) This section applies solely for the	3238
purposes of computing the credit allowed under division (A) of	3239
section 5747.05 of the Revised Code, computing income taxable in	3240
this state under division (D) of section 5747.08 of the Revised	3241
Code, and computing the credit allowed under section 5747.057 of	3242
the Revised Code. ~~Except~~	3243

(B) Except as otherwise provided under ~~section~~sections	3244
5747.211 and 5747.212 of the Revised Code, all items of business	3245
income and business deduction shall be apportioned to this state	3246
by multiplying the adjusted gross income by the fraction	3247
calculated under division (B)(2) of section 5733.05 and section	3248
5733.057 of the Revised Code as if the taxpayer's business were a	3249
corporation subject to the tax imposed by section 5733.06 of the	3250
Revised Code.	3251

(C) If the allocation and apportionment provisions of	3252
sections 5747.20 to 5747.23 of the Revised Code or of any rule	3253
adopted by the tax commissioner, do not fairly represent the	3254
extent of business activity in this state of a taxpayer or	3255
pass-through entity, the taxpayer or pass-through entity may	3256
request, which request must be in writing accompanying the return	3257
or amended return, or the tax commissioner may require, in respect	3258
of all or any part of the business activity, if reasonable, any	3259
one or more of the following:	3260

(1) Separate accounting;

3261

(2) The exclusion of one or more factors;

3262

(3) The inclusion of one or more additional factors which	3263
will fairly represent the business activity in this state;	3264

(4) The employment of any other method to effectuate an	3265
equitable allocation of such business in this state. An	3266
alternative method will be effective only with approval of the tax	3267
commissioner.	3268

The tax commissioner may adopt rules in the manner provided	3269
by sections 5703.14 and 5747.18 of the Revised Code providing for	3270
alternative methods of calculating business income and nonbusiness	3271
income applicable to all taxpayers and pass-through entities, to	3272
classes of taxpayers and pass-through entities, or only to	3273
taxpayers and pass-through entities within a certain industry.	3274

Sec. 5747.212. This section applies solely for the purpose	3275
of computing the credit allowed under division (A) of section	3276
5747.05 of the Revised Code, computing income taxable in this	3277
state under division (D) of section 5747.08 of the Revised Code,	3278
and computing the credit allowed under section 5747.057 of the	3279
Revised Code.	3280

A pass-through entity investor that owns, directly or	3281
indirectly, at least twenty per cent of the pass-through entity at	3282
any time during the current taxable year or either of the two	3283
preceding taxable years shall apportion any income, including gain	3284
or loss, realized from the sale, exchange, or other disposition of	3285
a debt or equity interest in the entity as prescribed in this	3286
section. For such purposes, in lieu of using the method	3287
prescribed by sections 5747.20 and 5747.21 of the Revised Code,	3288
the investor shall apportion the income using the average of the	3289
pass-through entity's apportionment fractions otherwise applicable	3290
under section 5747.21 of the Revised Code for the current and two	3291
preceding taxable years. If the pass-through entity was not in	3292
business for one or more of those years, each year that the entity	3293
was not in business shall be excluded in determining the average.	3294

Sec. 5901.02. In each county there shall be a commission	3295
known as "the veterans service commission." Except as provided in	3296
section 5901.021 of the Revised Code, the commission shall be	3297
composed of five ~~persons. Those persons shall be~~ residents of the	3298
county ~~and shall be~~ appointed to five-year terms by a judge of the	3299
court of common pleas. At the time of appointment or	3300
reappointment to the commission, no commission member appointed	3301
under this section shall be an employee of the commission or hold	3302
an elective or other appointive office of the county served by the	3303
commission.	3304

Each member of the commission appointed under this section	3305
shall be an honorably discharged or honorably separated veteran.	3306
Within sixty days after the date of appointment, each such member	3307
~~of the commission~~ shall file the member's form DD214 with the	3308
governor's office of veterans affairs in accordance with	3309
guidelines established by the director of that office.	3310
~~Appointments to the commission~~Such appointments shall be made	3311
from lists of recommended persons, in the manner specified in the	3312
following paragraph. One person shall be a representative	3313
recommended by the American Legion; one person shall be a	3314
representative recommended by the Veterans of Foreign Wars; one	3315
person shall be a representative recommended by the Disabled	3316
American Veterans; one person shall be a representative	3317
recommended by the AMVETS; and one person shall be a	3318
representative recommended by the Military Order of the Purple	3319
Heart of the U.S.A., the Vietnam Veterans of America, or the	3320
Korean War Veterans Association. If any such organization has no	3321
post or chapter located in the county, the appointment shall be	3322
made from lists of recommended persons submitted by posts or	3323
chapters of any other congressionally chartered veterans	3324
organizations located in the county. If no such other	3325
organizations have posts or chapters located in the county, the	3326
judge ~~described in the following paragraph~~responsible for making	3327
appointments under this section may appoint any qualified veteran	3328
to represent the veteran community.	3329

On or before the fifteenth day of October of each year, the	3330
appointing judge ~~of the court of common pleas who is responsible~~	3331
~~for making appointments to the commission~~ shall notify each post	3332
or chapter of each organization within the county from which the	3333
member may or must be appointed that it may submit a list	3334
containing three recommendations of persons who are eligible for	3335
appointment. If the judge does not receive any recommendations	3336
within sixty days after providing the required notification, the	3337
judge may appoint any qualified veteran to represent the veteran	3338
community. The judge shall make the appointment on or before the	3339
fifteenth day of January of each year. ~~Vacancies occurring on the~~	3340
~~commission~~Any vacancy in a membership appointed under this	3341
section shall be filled in the same manner as the original	3342
appointments.	3343

Beginning in the year 2000, ~~appointments~~appointment of	3344
members to the commission under this section shall be made as	3345
follows:	3346

(A) Appointments for members to represent the American	3347
Legion shall be made for terms to commence in years ending in zero	3348
and five.	3349

(B) Appointments for members to represent the Veterans of	3350
Foreign Wars shall be made for terms to commence in years ending	3351
in one and six.	3352

(C) Appointments for members to represent the Disabled	3353
American Veterans shall be made for terms to commence in years	3354
ending in two and seven.	3355

(D) Appointments for members to represent the AMVETS shall	3356
be made for terms to commence in years ending in three and eight.	3357

(E) Appointments for members to represent the Military Order	3358
of the Purple Heart of the U.S.A., the Vietnam Veterans of	3359
America, or the Korean War Veterans Association shall be made for	3360
terms to commence in years ending in four and nine.	3361

The terms immediately preceding the initial appointments made	3362
under divisions (A) to (E) of this section may be for periods of	3363
less than five years.	3364

Sec. 5901.021. This section applies only to counties having a	3365
population, according to the most recent decennial census, of more	3366
than four hundred thousand. In any such county in which the	3367
veterans service commission submits a budget request under section	3368
5901.11 of the Revised Code for the ensuing fiscal year that	3369
exceeds (1) twenty-five-thousandths of one per cent of the	3370
assessed value of property in the county or (2) the amount	3371
appropriated to the commission from the county general fund in the	3372
current fiscal year by more than ten per cent of that	3373
appropriation, the board of county commissioners, by resolution,	3374
may create not more than six memberships on the veterans service	3375
commission in addition to the memberships provided for by section	3376
5901.02 of the Revised Code. The board shall prescribe the number	3377
of years such memberships shall exist, which shall not exceed five	3378
years. Once a board of county commissioners creates such	3379
memberships, it may not create additional memberships under this	3380
section if the total number of such memberships would exceed six.	3381
The board shall appoint residents of the county to each of the	3382
additional memberships for terms prescribed by the board and	3383
commencing on a date fixed by the board.	3384

If the board of county commissioners appoints such additional	3385
members, the board may permit the commission to submit an original	3386
or revised budget request for the ensuing fiscal year later than	3387
the last Monday in May, as otherwise required under section	3388
5901.11 of the Revised Code.	3389

The board of county commissioners may remove, for cause, any	3390
member appointed under this section; shall provide for whether	3391
such members may be reappointed upon the expiration of their	3392
terms; and shall fill any vacancy in a membership appointed under	3393
this section for the unexpired term in the manner provided for the	3394
original appointment.	3395

Sec. 5901.03. The veterans service commission shall select	3396
one of its members as president, one as vice-president, and one as	3397
secretary. The commission shall meet at least once each month. A	3398
judge of the court of common pleas may remove, for cause, any	3399
member of the commission ~~for cause~~appointed under section 5901.02	3400
of the Revised Code, and shall fill vacancies ~~occuring on the~~	3401
~~commission~~occurring among memberships appointed under that	3402
section for the unexpired terms, in the manner provided ~~in section~~	3403
~~5901.02 of the Revised Code~~for the original appointments.	3404

The commission's duties shall include but are not limited to	3405
the following:	3406

(A) Employing such staff as are necessary to carry out the	3407
commission's duties, and fixing their compensation;	3408

(B) Establishing policies and procedures for the	3409
administration of the commission and the veterans service office;	3410

(C) Establishing policies and procedures for the	3411
administration of assistance as provided under this chapter;	3412

(D) Causing the budgets of the veterans service commission	3413
and veterans service office to be presented to the board of county	3414
commissioners for approval;	3415

(E) Establishing programs of outreach and coordination with	3416
other agencies to enhance available services to veterans within	3417
the county;	3418

(F) Promoting, monitoring, and providing funding for ongoing	3419
education and training for veterans service commissioners and	3420
staff;	3421

(G) Making reports to the organizations represented on the	3422
commission, as provided in section 5901.02 of the Revised Code,	3423
and to others, upon request;	3424

(H) Establishing regularly scheduled transportation for	3425
veterans to and from veterans administration medical centers whose	3426
districts the county is within, through contractual agreements or	3427
through other arrangements determined by the commission to be most	3428
cost-effective;	3429

(I) Participating in appropriate memorial and commemorative	3430
activities to help promote patriotism and veterans services;	3431

(J) Taking any other actions required by this chapter.

3432

Sec. 5919.34. (A) As used in this section:

3433

(1) "Academic term" means any one of the following:

3434

(a) Fall term, which consists of fall semester or fall	3435
quarter, as appropriate;	3436

(b) Winter term, which consists of winter semester, winter	3437
quarter, or spring semester, as appropriate;	3438

3439

(d) Summer term, which consists of summer semester or summer	3440
quarter, as appropriate.	3441

(2) "Eligible applicant" means any individual to whom all of	3442
the following apply:	3443

(a) The individual does not possess a baccalaureate degree.

3444

(b) The individual has enlisted, re-enlisted, or extended	3445
current enlistment in the Ohio national guard or is an individual	3446
to which division (F) of this section applies.	3447

(c) The individual is actively enrolled as a full-time or	3448
part-time student for at least six credit hours of course work in	3449
a semester or quarter in a two-year or four-year degree-granting	3450
program at an institution of higher education or in a	3451
diploma-granting program at an institution of higher education	3452
that is a school of nursing.	3453

(d) The individual has not accumulated ninety-six	3454
eligibility units under division (E) of this section.	3455

(3) "Institution of higher education" means an Ohio	3456
institution of higher education that is state-assisted, that is	3457
nonprofit and has received a certificate of authorization from the	3458
Ohio board of regents pursuant to Chapter 1713. of the Revised	3459
Code, that is a private institution exempt from regulation under	3460
Chapter 3332. of the Revised Code as prescribed in section	3461
3333.046 of the Revised Code, or that holds a certificate of	3462
registration and program authorization issued by the state board	3463
of proprietary school registration pursuant to section 3332.05 of	3464
the Revised Code.	3465

(4) "State university" has the same meaning as in section	3466
3345.011 of the Revised Code.	3467

(B)(1) There is hereby created a scholarship program to be	3468
known as the Ohio national guard scholarship program. For the	3469
fiscal year 2000, the number of participants in the program for	3470
the fall term is limited to the equivalent of two thousand five	3471
hundred full-time participants; the number of participants in the	3472
program for the winter term is limited to the equivalent of two	3473
thousand five hundred full-time participants; the number of	3474
participants in the program for the spring term is limited to the	3475
equivalent of one thousand six hundred seventy-five full-time	3476
participants; and the number of participants in the program for	3477
the summer term is limited to the equivalent of six hundred	3478
full-time participants. Except as provided in division (B)(2) of	3479
this section for the fiscal year 2001 and succeeding fiscal years,	3480
the number of participants in the program for the fall term is	3481
limited to the equivalent of three thousand five hundred full-time	3482
participants; the number of participants in the program for the	3483
winter term is limited to the equivalent of three thousand five	3484
hundred full-time participants; the number of participants in the	3485
program for the spring term is limited to the equivalent of two	3486
thousand three hundred forty-five full-time participants; and the	3487
number of participants in the program for the summer term is	3488
limited to the equivalent of eight hundred full-time participants.	3489

(2) After the application deadline for any academic term in	3490
fiscal year 2001, the adjutant general may request the controlling	3491
board, if sufficient appropriated funds are available, to approve	3492
the following number of additional participants for that term:	3493

(a) For the fall or winter academic term, up to the	3494
equivalent of five hundred additional full-time participants;	3495

(b) For the spring academic term, up to the equivalent of	3496
three hundred seventy-five additional full-time participants;	3497

(c) For the summer academic term, up to the equivalent of	3498
one hundred twenty-five additional full-time participants.	3499

(C) If the adjutant general estimates that appropriations	3500
for all scholarships applied for under this section and likely to	3501
be used during an academic term are inadequate for all eligible	3502
applicants for that academic term to receive scholarships, the	3503
adjutant general shall promptly inform all applicants not	3504
receiving scholarships for that academic term of the next academic	3505
term that appropriations will be adequate for the scholarships.	3506
Any such eligible applicant may again apply for a scholarship	3507
beginning that academic term if the applicant is in compliance	3508
with all requirements established by this section and the adjutant	3509
general for the program. The adjutant general shall process all	3510
applications for scholarships for each academic term in the order	3511
in which they are received. The scholarships shall be made	3512
without regard to financial need. At no time shall one person be	3513
placed in priority over another because of sex, race, or religion.	3514

(D)(1) Except as provided in division ~~(H)~~(I) of this	3515
section, for each academic term that an eligible applicant is	3516
approved for a scholarship under this section and either remains a	3517
current member in good standing of the Ohio national guard or is	3518
eligible for a scholarship under division (F)(1) of this section,	3519
the institution of higher education in which the applicant is	3520
enrolled shall, if the applicant's enlistment obligation extends	3521
beyond the end of that academic term or if division (F)(1) of this	3522
section applies, be paid on the applicant's behalf the applicable	3523
one of the following amounts:	3524

~~(1)~~(a) If the institution is state-assisted, an amount equal	3525
to one hundred per cent of the institution's tuition charges;	3526

~~(2)~~(b) If the institution is a nonprofit private institution	3527
or a private institution exempt from regulation under Chapter	3528
3332. of the Revised Code as prescribed in section 3333.046 of the	3529
Revised Code, an amount equal to one hundred per cent of the	3530
average tuition charges of all state universities;	3531

~~(3)~~(c) If the institution is an institution that holds a	3532
certificate of registration from the state board of proprietary	3533
school registration, the lesser of the following:	3534

~~(a)~~(i) An amount equal to one hundred per cent of the total	3535
instructional and general charges of the institution;	3536

~~(b)~~(ii) An amount equal to one hundred per cent of the	3537
average tuition charges of all state universities.	3538

~~(4)~~(2) An eligible applicant's scholarship shall not be	3539
reduced by the amount of that applicant's benefits under "the	3540
Montgomery G.I. Bill Act of 1984," Pub. L. No. 98-525, 98 Stat.	3541
2553 (1984).	3542

(E) A scholarship recipient under this section shall be	3543
entitled to receive scholarships under this section for the number	3544
of quarters or semesters it takes the recipient to accumulate	3545
ninety-six eligibility units as determined under divisions (E)(1)	3546
to (3) of this section.	3547

(1) To determine the maximum number of semesters or quarters	3548
for which a recipient is entitled to a scholarship under this	3549
section, the adjutant general shall convert a recipient's credit	3550
hours of enrollment for each academic term into eligibility units	3551
in accordance with the following table:	3552

Number of		The following		The following	3553
credit hours		number of		number of	3554
of enrollment		eligibility		eligibility	3555
in an academic		units if a		units if a	3556
term	equals	semester	or	quarter	3557
12 or more hours		12 units		8 units	3558
9 but less than 12		9 units		6 units	3559
6 but less than 9		6 units		4 units	3560

(2) A scholarship recipient under this section may continue	3561
to apply for scholarships under this section until the recipient	3562
has accumulated ninety-six eligibility units.	3563

(3) If a scholarship recipient withdraws from courses prior	3564
to the end of an academic term so that the recipient's enrollment	3565
for that academic term is less than six credit hours, no	3566
scholarship shall be paid on behalf of that person for that	3567
academic term ~~except that~~. Except as provided in division (F)(3)	3568
of this section, if a scholarship has already been paid on behalf	3569
of the person for that academic term, the adjutant general shall	3570
add to that person's accumulated eligibility units the number of	3571
eligibility units for which the scholarship was paid.	3572

(F) This division applies to any eligible applicant called	3573
into active duty on or after September 11, 2001. As used in this	3574
division, "active duty" means active duty pursuant to an executive	3575
order of the president of the United States, an act of the	3576
congress of the United States, or section 5919.29 or 5923.21 of	3577
the Revised Code.	3578

(1) An individual to whom this division applies is eligible	3579
for scholarships under this section for those academic terms that	3580
were missed or could have been missed as a result of the	3581
individual's call into active duty. Scholarships shall not be	3582
paid for the academic term in which an eligible applicant's	3583
enlistment obligation ends unless an applicant is eligible under	3584
this division for a scholarship for such academic term due to	3585
previous active duty.	3586

(2) When an individual to whom this division applies	3587
withdraws or otherwise fails to complete courses, for which	3588
scholarships have been awarded under this section, because the	3589
individual was called into active duty, the institution of higher	3590
education shall grant the individual a leave of absence from the	3591
individual's education program and shall not impose any academic	3592
penalty for such withdrawal or failure to complete courses.	3593
Division (F)(2) of this section applies regardless of whether or	3594
not the scholarship amount was paid to the institution of higher	3595
education.	3596

(3) If an individual to whom this division applies	3597
withdraws or otherwise fails to complete courses because the	3598
individual was called into active duty, and if scholarships for	3599
those courses have already been paid, either:	3600

(a) The adjutant general shall not add to that person's	3601
accumulated eligibility units calculated under division (E) of	3602
this section the number of eligibility units for the academic	3603
courses or term for which the scholarship was paid and the	3604
institution of higher education shall repay the scholarship amount	3605
to the state.	3606

(b) The adjutant general shall add to that individual's	3607
accumulated eligibility units calculated under division (E) of	3608
this section the number of eligibility units for the academic	3609
courses or term for which the scholarship was paid if the	3610
institution of higher education agrees to permit the individual to	3611
complete the remainder of the academic courses in which the	3612
individual was enrolled at the time the individual was called into	3613
active duty.	3614

(G) A scholarship recipient under this section who fails	3615
to complete the term of enlistment, re-enlistment, or extension of	3616
current enlistment the recipient was serving at the time a	3617
scholarship was paid on behalf of the recipient under this section	3618
is liable to the state for repayment of a percentage of all Ohio	3619
national guard scholarships paid on behalf of the recipient under	3620
this section, plus interest at the rate of ten per cent per annum	3621
calculated from the dates the scholarships were paid. This	3622
percentage shall equal the percentage of the current term of	3623
enlistment, re-enlistment, or extension of enlistment a recipient	3624
has not completed as of the date the recipient is discharged from	3625
the Ohio national guard.	3626

The attorney general may commence a civil action on behalf of	3627
the adjutant general to recover the amount of the scholarships and	3628
the interest provided for in this division and the expenses	3629
incurred in prosecuting the action, including court costs and	3630
reasonable attorney's fees. A scholarship recipient is not liable	3631
under this division if the recipient's failure to complete the	3632
term of enlistment being served at the time a scholarship was paid	3633
on behalf of the recipient under this section is due to the	3634
recipient's death; discharge from the national guard due to	3635
disability; or the recipient's enlistment, for a term not less	3636
than the recipient's remaining term in the national guard, in the	3637
active component of the United States armed forces or the active	3638
reserve component of the United States armed forces.	3639

~~(G)~~(H) On or before the first day of each academic term, the	3640
adjutant general shall provide an eligibility roster to each	3641
institution of higher education at which one or more scholarship	3642
recipients have applied for enrollment. The institution shall use	3643
the roster to certify the actual full-time or part-time enrollment	3644
of each scholarship recipient listed as enrolled at the	3645
institution and return the roster to the adjutant general within	3646
thirty days after the first day of the academic term. The	3647
adjutant general shall report to the Ohio board of regents the	3648
number of students in the Ohio national guard scholarship program	3649
at each institution of higher education. The Ohio board of	3650
regents shall provide for payment of the appropriate number and	3651
amount of scholarships to each institution of higher education	3652
pursuant to division (D) of this section. The adjutant general	3653
shall report on a quarterly basis to the director of budget and	3654
management, the speaker of the house of representatives, and the	3655
president of the senate the number of Ohio national guard	3656
scholarship recipients and a projection of the cost of the program	3657
for the remainder of the biennium.	3658

~~(H)~~(I) The chancellor of the Ohio board of regents and the	3659
adjutant general may adopt rules pursuant to Chapter 119. of the	3660
Revised Code governing the administration and fiscal management of	3661
the Ohio national guard scholarship program and the procedure by	3662
which the Ohio board of regents and the department of the adjutant	3663
general may modify the amount of scholarships a member receives	3664
based on the amount of other state financial aid a member	3665
receives.	3666

~~(I)~~(J) Notwithstanding division (A) of section 127.14 of the	3667
Revised Code, the controlling board shall not transfer all or part	3668
of any appropriation for the Ohio national guard scholarship	3669
program.	3670

Section 2. That existing sections 124.151, 131.44, 173.06,	3671
173.40, 2913.40, 3721.51, 3721.56, 5101.11, 5111.02, 5111.10,	3672
5111.86, 5111.871, 5112.01, 5112.06, 5112.07, 5112.11, 5123.041,	3673
5126.053, 5126.17, 5733.01, 5733.04, 5733.40, 5740.03, 5743.02,	3674
5743.03, 5743.04, 5743.08, 5743.081, 5743.12, 5743.13, 5743.14,	3675
5743.32, 5743.33, 5743.34, 5743.35, 5747.01, 5747.02, 5747.05,	3676
5747.21, 5901.02, 5901.03, and 5919.34 and sections 5126.16,	3677
5126.18, 5743.023, and 5743.322 of the Revised Code are hereby	3678
repealed.	3679

Section 3. (A) As used in this section, "net additional tax"	3680
means the net additional amount of tax due on all packages of Ohio	3681
stamped cigarettes and on all unaffixed Ohio cigarette tax stamps	3682
that a wholesale or retail dealer has on hand as of the beginning	3683
of business on July 1, 2002, as a result of the amendment of	3684
section 5743.02 and the repeal of section 5743.023 of the Revised	3685
Code by this act.	3686

(B) The amendment by this act of sections 5743.02, 5743.03,	3687
5743.04, 5743.08, 5743.081, 5743.12, 5743.13, 5743.14, 5743.32,	3688
5743.33, 5743.34, and 5743.35 and the repeal by this act of	3689
sections 5743.023 and 5743.322 of the Revised Code take effect	3690
July 1, 2002.	3691

(C) In addition to the return required by section 5743.03 of	3692
the Revised Code, each wholesale dealer and each retail dealer	3693
shall make and file a return on forms prescribed by the Tax	3694
Commissioner, showing the net additional tax due and any other	3695
information that the Commissioner considers necessary for the	3696
administration of sections 5743.01 to 5743.20 of the Revised Code.	3697
Not later than July 31, 2002, each wholesale dealer and each	3698
retail dealer shall deliver the return to the Treasurer of State,	3699
together with a remittance of an amount equal to one-third of the	3700
net additional tax. The Treasurer of State shall stamp or	3701
otherwise mark on the return the date it was received and also	3702
shall show on the return by stamp or otherwise the tax payment	3703
remitted with the return. The Treasurer of State immediately shall	3704
transmit all returns filed under this section to the Tax	3705
Commissioner. Not later than August 31, 2002, and also not later	3706
than September 30, 2002, each such dealer shall remit to the	3707
Treasurer of State an amount equal to one-third of the net	3708
additional tax. Any wholesale or retail dealer who fails to file a	3709
return or remit the net additional tax as prescribed by this	3710
section, for each day the dealer fails to do so, shall forfeit and	3711
pay into the state treasury, as revenue arising from the tax	3712
imposed by section 5743.02 of the Revised Code, a late charge	3713
equal to the greater of fifty dollars or ten per cent of the tax	3714
due. Any unpaid or unreported tax liability or late charge levied	3715
by this section may be collected by assessment in the manner	3716
provided in section 5743.081 or 5743.082 of the Revised Code.	3717

(D) Notwithstanding section 5743.05 of the Revised Code, for	3718
cigarette tax stamps and meter impressions sold on or after July	3719
1, 2002, and before May 1, 2003, to licensed dealers in good	3720
standing as of July 1, 2002, the Treasurer of State may sell and	3721
account for such stamps and meter impressions at their face value	3722
in effect on June 30, 2002, with the remainder due within thirty	3723
days, provided that if a wholesale or retail dealer does not pay	3724
the remainder within such thirty days, the Treasurer of State	3725
shall not thereafter sell stamps or meter impressions to that	3726
dealer until the dealer pays the outstanding amount, including	3727
penalty and interest on that amount as prescribed by Chapter 5743.	3728
of the Revised Code. In cases where such a dealer is permitted to	3729
purchase stamps or meter impressions on credit under this	3730
division, the bond shall not be required to secure payment of any	3731
amount in excess of the face value of stamps or meter impressions	3732
in effect on June 30, 2002, and otherwise payable as provided in	3733
this division, provided that if the dealer defaults on the	3734
obligation to pay any amount due, the Treasurer of State shall not	3735
thereafter sell stamps or meter impressions to that dealer until	3736
the dealer pays the outstanding amount, including penalty and	3737
interest on that amount as prescribed by Chapter 5743. of the	3738
Revised Code.	3739

Section 4. (A) Except as provided in division (B) of this	3740
section, the amendment or enactment by this act of sections	3741
5733.01, 5733.04, 5747.01, 5747.02, 5747.05, 5747.21, and 5747.212	3742
of the Revised Code apply to taxable years ending on or after the	3743
effective date of this section.	3744

(B)(1) The amendment by this act of divisions (A)(6),	3745
(I)(3), and (S)(12) of section 5747.01 and division (D) of section	3746
5747.02 of the Revised Code apply to such taxable years as	3747
provided in those divisions.	3748

(2) To ease taxpayer compliance burdens, each taxpayer	3749
having a taxable year ending after September 10, 2001, and before	3750
the effective date of this section, may elect to apply to that	3751
taxable year the amendment by this act of section 5733.04 of the	3752
Revised Code, by the addition of divisions (I)(17) and (18) of	3753
that section, of section 5733.40, and of section 5747.01 of the	3754
Revised Code by the addition of divisions (A)(20) and (21) and	3755
(S)(14) of that section. If the taxpayer has more than one	3756
taxable year ending during that period and makes that election,	3757
the election applies to all those taxable years. The election	3758
shall accompany or be reflected in the report or return when	3759
filed, or shall accompany or be reflected in an amended report.	3760
The election is revocable at the option of the person making the	3761
election, but no revocation is effective if it is made after the	3762
ninetieth day before the last day of the applicable period of time	3763
described in division (B) of section 5733.12 or division (B) of	3764
section 5747.11 of the Revised Code, as applicable.	3765

(C) Notwithstanding division (A) of section 5747.02 of the	3766
Revised Code, as amended by this act, the adjustment of the income	3767
amounts required to be made by that amendment in 2005 shall be	3768
made by multiplying the percentage increase in the gross domestic	3769
product deflator by each of the income amounts applicable to	3770
taxable years beginning in 2004, adding the resulting product to	3771
the corresponding income amount applicable to taxable years	3772
beginning in 2004, and rounding the resulting sum to the nearest	3773
multiple of fifty dollars.	3774

Section 5. (A) The Committee to Study State and Local Taxes	3775
is hereby created. The committee shall consist of nine members.	3776
The Speaker of the House of Representatives shall appoint three	3777
members of the House of Representatives to the committee, not more	3778
than two of whom shall be from the majority party. The President	3779
of the Senate shall appoint three members of the Senate to the	3780
committee, not more than two of whom shall be from the majority	3781
party. One member shall be the Tax Commissioner, one shall be the	3782
Director of Budget and Management, and one shall be the Director	3783
of Development. Vacancies shall be filled in the same manner as	3784
original appointments. The members of the committee shall be	3785
appointed within thirty days after the effective date of this	3786
section. The members shall select a chairperson of the committee	3787
from among themselves. A majority of the committee constitutes a	3788
quorum for the conduct of official business.	3789

(B) The committee may request staff assistance from the	3790
Legislative Service Commission as well as the participating	3791
agencies. The committee may meet during periods when the General	3792
Assembly has adjourned, and may solicit and take testimony from	3793
experts on public finance and taxation as well as from interested	3794
parties. All state agencies and local governments shall comply	3795
promptly with any requests by the committee for data or other	3796
information the committee requires to properly complete its	3797
research.	3798

3799

(1) Make a study of the current state and local tax	3800
structure, including a determination of how the current tax	3801
structure affects various sectors of the economy, such as	3802
business, industry, and individuals;	3803

(2) Examine the current state and local tax structure with	3804
attention to its equity, simplicity, stability, neutrality, and	3805
competitiveness. The committee shall take ease of administration	3806
and compliance into consideration as an aspect of "simplicity."	3807
The committee shall take long term revenues into consideration as	3808
an aspect of "stability."	3809

(3) Identify aspects of the tax structure that present	3810
particular obstacles to equity, simplicity, stability, neutrality,	3811
and competitiveness;	3812

(4) Analyze who bears the ultimate tax burden with respect	3813
to any particular tax;	3814

(5) Evaluate priorities in the tax structure.

3815

(D) On or before March 1, 2003, the committee shall prepare	3816
and submit to the Governor, Speaker of the House of	3817
Representatives, and President of the Senate, and to the Minority	3818
Leaders of the House and Senate, a report summarizing the	3819
committee's review of the state and local tax structure. The	3820
report shall include recommendations for improvements in the tax	3821
structure, which recommendations shall be revenue neutral in the	3822
aggregate.	3823

Section 6. That Section 8 of Am. Sub. S.B. 172 of the 123rd	3824
General Assembly be amended to read as follows:	3825

" Sec. 8. Sections 6 and 7 of this act shall take effect	3826
July 1, ~~2002~~2003."	3827

Section 7. That existing Section 8 of Am. Sub. S.B. 172 of	3828
the 123rd General Assembly is hereby repealed.	3829

Section 8. That Section 5.02 of Sub. H.B. 73 of the 124th	3830
General Assembly, as amended by Am. Sub. H.B. 405 of the 124th	3831
General Assembly, be amended to read as follows:	3832

" Sec. 5.02. ENFORCEMENT

3833

State Highway Safety Fund Group

3834

036	764-033	Minor Capital Projects	$	2,531,302		$	1,732,358	3835
036	764-321	Operating Expense - Highway Patrol	$	185,264,130		$	195,245,402	3836
036	764-605	Motor Carrier Enforcement Expense	$	189,309		$	~~192,411~~ 2,454,232	3837
83C	764-630	Contraband, Forfeiture, Other	$	603,296		$	622,894	3838
83F	764-657	Law Enforcement Auto. Data System	$	5,050,151		$	5,277,569	3839
83G	764-633	OMVI Fines	$	781,051		$	820,927	3840
831	764-610	Patrol/Federal	$	2,210,831		$	2,336,609	3841
831	764-659	Transportation Enforcement - Federal	$	3,919,153		$	4,087,361	3842
837	764-602	Turnpike Policing	$	8,803,786		$	9,306,325	3843
838	764-606	Patrol Reimbursement	$	216,690		$	222,108	3844
840	764-607	State Fair Security	$	1,306,015		$	1,384,660	3845
840	764-617	Security and Investigations	$	4,484,313		$	4,749,103	3846
840	764-626	State Fairgrounds Police Force	$	783,175		$	829,631	3847
840	764-667	Security Assessment	$	152,324		$	160,982	3848
841	764-603	Salvage and Exchange - Highway Patrol	$	1,243,025		$	1,274,101	3849
TOTAL HSF State Highway Safety								3850
Fund Group			$	217,538,551		$	~~228,242,441~~	3851
			230,504,262		3852

General Services Fund Group

3853

4S2	764-660	MARCS Maintenance	$	241,811		$	227,222	3854
TOTAL GSF General Services								3855
Fund Group			$	241,811		$	227,222	3856
TOTAL ALL BUDGET FUND GROUPS -								3857
Enforcement			$	217,780,362		$	~~228,469,663~~	3858
			230,731,484		3859

COLLECTIVE BARGAINING INCREASES

3860

Notwithstanding division (D) of section 127.14 and division	3861
(B) of section 131.35 of the Revised Code, except for the General	3862
Revenue Fund, the Controlling Board may, upon the request of	3863
either the Director of Budget and Management, or the Department of	3864
Public Safety with the approval of the Director of Budget and	3865
Management, increase appropriations for any fund, as necessary for	3866
the Department of Public Safety, to assist in paying the costs of	3867
increases in employee compensation that have occurred pursuant to	3868
collective bargaining agreements under Chapter 4117. of the	3869
Revised Code and, for exempt employees, under section 124.152 of	3870
the Revised Code.	3871

PATROL REIMBURSEMENT FUND CASH TRANSFER

3872

On the effective date of this ~~amendment~~section as amended by	3873
Am. Sub. H.B. 405 of the 124th General Assembly or as soon as	3874
possible thereafter, the Director of Budget and Management shall	3875
transfer $551,150.59 in cash from the Patrol Reimbursement Fund	3876
(Fund 838) to the Turnpike Policing Fund (Fund 837). This transfer	3877
will correct an inaccurate deposit made at the end of fiscal year	3878
2001.	3879

On the effective date of this ~~amendment~~section as amended by	3880
Am. Sub. H.B. 405 of the 124th General Assembly or as soon as	3881
possible thereafter, the Director of Budget and Management shall	3882
transfer up to $189,309 in cash in fiscal year 2002 and shall	3883
transfer up to ~~$192,411~~$2,454,232 in cash in fiscal year 2003	3884
from the Financial Responsibility Compliance (Fund 835) to the	3885
State Highway Safety Fund (Fund 036)."	3886

Section 9. That existing Section 5.02 of Sub. H.B. 73 of the	3887
124th General Assembly, as amended by Am. Sub. H.B. 405 of the	3888
124th General Assembly, is hereby repealed.	3889

Section 10. That Sections 16, 16.02, 44, 44.19, 63.07, 63.35,	3890
75.02, 94, 94.02, 94.06, 94.07, and 125 of Am. Sub. H.B. 94 of the	3891
124th General Assembly be amended to read as follows:	3892

" Sec. 16. AGE DEPARTMENT OF AGING

3893

General Revenue Fund

3894

GRF	490-321	Operating Expenses	$	2,896,946		$	2,877,346	3895
GRF	490-403	PASSPORT	$	60,630,444		$	~~62,563,924~~ 70,363,924	3896
GRF	490-405	Golden Buckeye Card	$	377,560		$	377,560	3897
GRF	490-406	Senior Olympics	$	39,862		$	39,862	3898
GRF	490-407	Long-Term Care Consumer Guide	$	622,799		$	622,799	3899
GRF	490-409	Ohio Community Service Council Operations	$	311,640		$	311,640	3900
GRF	490-410	Long-Term Care Ombudsman	$	1,412,058		$	1,412,058	3901
GRF	490-411	Senior Community Services	$	13,784,750		$	13,784,750	3902
GRF	490-412	Residential State Supplement	$	12,534,591		$	12,290,915	3903
GRF	490-414	Alzheimers Respite	$	4,436,673		$	4,436,673	3904
GRF	490-416	Transportation For Elderly	$	183,000		$	183,000	3905
GRF	490-419	Prescription Drug Discount Program	$	0		$	177,000	3906
GRF	490-499	Senior Employment Program	$	15,574		$	15,574	3907
GRF	490-504	Senior Facilities	$	130,000		$	100,000	3908
GRF	490-506	Senior Volunteers	$	491,614		$	496,580	3909
TOTAL GRF General Revenue Fund			$	97,867,511		$	~~99,512,681~~	3910
			107,489,681		3911

General Services Fund Group

3912

480	490-606	Senior Citizens Services Special Events	$	363,587	$	372,677	3913
TOTAL GSF General Services Fund							3914
Group			$	363,587	$	372,677	3915

Federal Special Revenue Fund Group

3916

3C4	490-607	PASSPORT	$	129,645,833	$	144,875,065	3917
3M3	490-611	Federal Aging Nutrition	$	22,943,588	$	23,517,178	3918
3M4	490-612	Federal Supportive Services	$	21,025,940	$	21,545,338	3919
3R7	490-617	Ohio Community Service Council Programs	$	7,350,920	$	7,350,920	3920
322	490-618	Older Americans Support Services	$	10,873,661	$	11,144,778	3921
TOTAL FED Federal Special Revenue							3922
Fund Group			$	191,839,942	$	208,433,279	3923

State Special Revenue Fund Group

3924

4C4	490-609	Regional Long-Term Care Ombudsman Program	$	440,185		$	451,190	3925
4J4	490-610	PASSPORT/Residential State Supplement	$	24,000,000		$	24,000,000	3926
4U9	490-602	PASSPORT Fund	$	5,000,000		$	5,000,000	3927
5K9	490-613	Nursing Home Consumer Guide	$	400,000		$	400,000	3928
624	490-604	OCSC Community Support	$	2,500		$	2,500	3929
TOTAL SSR State Special Revenue								3930
Fund Group			$	29,842,685		$	29,853,690	3931
TOTAL ALL BUDGET FUND GROUPS			$	319,913,725		$	~~338,172,327~~	3932
			346,149,327		3933

Sec. 16.02. PASSPORT

3935

Appropriation item 490-403, PASSPORT, and the amounts set	3936
aside for the PASSPORT Waiver Program in appropriation item	3937
490-610, PASSPORT/Residential State Supplement, may be used to	3938
assess clients regardless of Medicaid eligibility.	3939

The Director of Aging shall adopt rules under section 111.15	3940
of the Revised Code governing the nonwaiver funded PASSPORT	3941
program, including client eligibility.	3942

The Department of Aging shall administer the Medicaid Waiver	3943
funded PASSPORT Home Care program as delegated by the Department	3944
of Job and Family Services in an interagency agreement. The	3945
foregoing appropriation item 490-403, PASSPORT, and the amounts	3946
set aside for the PASSPORT Waiver Program in appropriation item	3947
490-610, PASSPORT/Residential State Supplement, shall be used to	3948
provide the required state match for federal Medicaid funds	3949
supporting the Medicaid Waiver funded PASSPORT Home Care program.	3950
Appropriation item 490-403, PASSPORT, and the amounts set aside	3951
for the PASSPORT Waiver Program in appropriation item 490-610,	3952
PASSPORT/Residential State Supplement, may also be used to support	3953
the Department of Aging's administrative costs associated with	3954
operating the PASSPORT program.	3955

The foregoing appropriation item 490-607, PASSPORT, shall be	3956
used to provide the federal matching share for all PASSPORT	3957
program costs determined by the Department of Job and Family	3958
Services to be eligible for Medicaid reimbursement.	3959

SENIOR COMMUNITY SERVICES

3960

The foregoing appropriation item 490-411, Senior Community	3961
Services, shall be used for services designated by the Department	3962
of Aging, including, but not limited to, home-delivered meals,	3963
transportation services, personal care services, respite services,	3964
home repair, and care coordination. Service priority shall be	3965
given to low income, frail, and cognitively impaired persons 60	3966
years of age and over. The department shall promote cost sharing	3967
by service recipients for those services funded with block grant	3968
funds, including, where possible, sliding-fee scale payment	3969
systems based on the income of service recipients.	3970

ALZHEIMERS RESPITE

3971

The foregoing appropriation item 490-414, Alzheimers Respite,	3972
shall be used only to fund Alzheimer's disease services under	3973
section 173.04 of the Revised Code.	3974

TRANSPORTATION FOR ELDERLY

3975

The foregoing appropriation item 490-416, Transportation for	3976
Elderly, shall be used for non-capital expenses related to	3977
transportation services for the elderly that provide access to	3978
such things as healthcare services, congregate meals,	3979
socialization programs, and grocery shopping. The appropriation	3980
shall be allocated to the following agencies:	3981

(A) $45,000 per fiscal year to the Cincinnati Jewish	3982
Vocational Services;	3983

(B) $45,000 per fiscal year to the Cleveland Jewish	3984
Community Center;	3985

(C) $45,000 per fiscal year to the Columbus Jewish	3986
Federation;	3987

(D) $20,000 per fiscal year to the Dayton Jewish Family	3988
Services;	3989

(E) $10,000 per fiscal year to the Akron Jewish Community	3990
Center;	3991

(F) $5,000 per fiscal year to the Youngstown Jewish	3992
Federation;	3993

(G) $3,000 per fiscal year to the Canton Jewish Federation;

3994

(H) $10,000 per fiscal year to the Toledo Jewish Federation.

3995

Agencies receiving funding from appropriation item 490-416,	3996
Transportation for Elderly, shall coordinate services with other	3997
local service agencies.	3998

RESIDENTIAL STATE SUPPLEMENT

3999

Under the Residential State Supplement Program, the amount	4000
used to determine whether a resident is eligible for payment and	4001
for determining the amount per month the eligible resident will	4002
receive shall be as follows:	4003

(A) $900 for a residential care facility, as defined in	4004
section 3721.01 of the Revised Code;	4005

(B) $900 for an adult group home, as defined in Chapter	4006
3722. of the Revised Code;	4007

(C) $800 for an adult foster home, as defined in Chapter	4008
173. of the Revised Code;	4009

(D) $800 for an adult family home, as defined in Chapter	4010
3722. of the Revised Code;	4011

(E) $800 for an adult community alternative home, as defined	4012
in Chapter 3724. of the Revised Code;	4013

(F) $800 for an adult residential facility, as defined in	4014
Chapter 5119. of the Revised Code;	4015

(G) $600 for adult community mental health housing services,	4016
as defined in division (B)(5) of section 173.35 of the Revised	4017
Code.	4018

The Departments of Aging and Job and Family Services shall	4019
reflect this amount in any applicable rules the departments adopt	4020
under section 173.35 of the Revised Code.	4021

TRANSFER OF RESIDENTIAL STATE SUPPLEMENT APPROPRIATIONS

4022

The Department of Aging may transfer cash by intrastate	4023
transfer vouchers from the foregoing appropriation items 490-412,	4024
Residential State Supplement, and 490-610, PASSPORT/Residential	4025
State Supplement, to the Department of Job and Family Services'	4026
Fund 4J5, Home and Community-Based Services for the Aged Fund.	4027
The funds shall be used to make benefit payments to Residential	4028
State Supplement recipients.	4029

LONG-TERM CARE OMBUDSMAN

4030

The foregoing appropriation item 490-410, Long-Term Care	4031
Ombudsman, shall be used for a program to fund ombudsman program	4032
activities in nursing homes, adult care facilities, boarding	4033
homes, and home and community care services.	4034

PRESCRIPTION DRUG DISCOUNT PROGRAM

4035

The foregoing appropriation item 490-419, Prescription Drug	4036
Discount Program, shall be used to administer a prescription drug	4037
discount program.	4038

SENIOR FACILITIES

4039

Of the foregoing appropriation item 490-504, Senior	4040
Facilities, in fiscal year 2002, $10,000 shall be for the Tri-city	4041
Senior Center, $10,000 shall be for the Westlake Senior Center,	4042
and $10,000 shall be for the Rocky River Senior Center.	4043

Of the foregoing appropriation item 490-504, Senior	4044
Facilities, $10,000 shall be for the Jilliard Senior Center,	4045
$10,000 shall be for the Northwest Stark County Senior Center, and	4046
$10,000 shall be for the North Ridgeville Senior Center.	4047

REGIONAL LONG-TERM CARE OMBUDSMAN PROGRAMS

4048

The foregoing appropriation item 490-609, Regional Long-Term	4049
Care Ombudsman Programs, shall be used solely to pay the costs of	4050
operating the regional long-term care ombudsman programs.	4051

PASSPORT/RESIDENTIAL STATE SUPPLEMENT

4052

Of the foregoing appropriation item 490-610,	4053
PASSPORT/Residential State Supplement, up to $2,835,000 each	4054
fiscal year shall be used to fund the Residential State Supplement	4055
Program. The remaining available funds shall be used to fund the	4056
PASSPORT program.	4057

Sec. 44. EDU DEPARTMENT OF EDUCATION

4058

General Revenue Fund

4059

GRF	200-100	Personal Services	$	11,819,828	$	12,113,828	4060
GRF	200-320	Maintenance and Equipment	$	5,052,866	$	5,185,051	4061
GRF	200-406	Head Start	$	98,843,825	$	98,843,825	4062
GRF	200-408	Public Preschool	$	19,506,206	$	19,506,206	4063
GRF	200-410	Professional Development	$	23,463,829	$	34,810,579	4064
GRF	200-411	Family and Children First	$	3,550,000	$	3,550,000	4065
GRF	200-416	Vocational Education Match	$	2,381,738	$	2,381,738	4066
GRF	200-420	Technical Systems Development	$	6,000,000	$	6,500,000	4067
GRF	200-421	Alternative Education Programs	$	18,000,000	$	18,000,000	4068
GRF	200-422	School Management Assistance	$	2,185,675	$	1,971,219	4069
GRF	200-424	Policy Analysis	$	642,756	$	674,894	4070
GRF	200-425	Tech Prep Administration	$	2,431,012	$	2,431,012	4071
GRF	200-426	Ohio Educational Computer Network	$	39,871,927	$	39,871,927	4072
GRF	200-427	Academic Standards	$	8,474,999	$	8,862,500	4073
GRF	200-431	School Improvement Initiatives	$	15,850,000	$	14,625,000	4074
GRF	200-432	School Conflict Management	$	626,496	$	657,821	4075
GRF	200-433	Reading/Writing Improvement	$	18,962,948	$	19,276,694	4076
GRF	200-437	Student Assessment	$	23,692,045	$	25,942,045	4077
GRF	200-438	Safe Schools	$	2,050,000	$	2,050,000	4078
GRF	200-441	American Sign Language	$	232,073	$	236,715	4079
GRF	200-442	Child Care Licensing	$	1,517,751	$	1,548,107	4080
GRF	200-444	Professional Recruitment	$	1,917,000	$	1,705,800	4081
GRF	200-445	OhioReads Admin/Volunteer Support	$	5,485,440	$	5,485,440	4082
GRF	200-446	Education Management Information System	$	16,479,636	$	17,573,430	4083
GRF	200-447	GED Testing/Adult High School	$	2,038,678	$	2,079,451	4084
GRF	200-455	Community Schools	$	4,728,935	$	4,824,517	4085
GRF	200-500	School Finance Equity	$	23,560,125	$	19,975,864	4086
GRF	200-501	Base Cost Funding	$	4,273,654,781	$	4,441,014,505	4087
GRF	200-502	Pupil Transportation	$	334,183,786	$	377,305,465	4088
GRF	200-503	Bus Purchase Allowance	$	36,735,279	$	36,799,984	4089
GRF	200-505	School Lunch Match	$	9,639,000	$	9,831,780	4090
GRF	200-509	Adult Literacy Education	$	8,628,000	$	8,628,000	4091
GRF	200-511	Auxiliary Services	$	122,782,475	$	127,650,709	4092
GRF	200-513	Student Intervention Services	$	31,900,000	$	38,280,000	4093
GRF	200-514	Post-Secondary/Adult Career-Technical Education	$	23,240,243	$	23,240,243	4094
GRF	200-520	Disadvantaged Pupil Impact Aid	$	360,149,743	$	360,149,743	4095
GRF	200-521	Gifted Pupil Program	$	45,930,131	$	47,983,321	4096
GRF	200-525	Parity Aid	$	99,813,832	$	210,305,911	4097
GRF	200-532	Nonpublic Administrative Cost Reimbursement	$	53,533,703	$	55,675,051	4098
GRF	200-534	Desegregation Costs	$	500,000	$	500,000	4099
GRF	200-540	Special Education Enhancements	$	139,006,701	$	141,950,428	4100
GRF	200-545	Career-Technical Education Enhancements	$	21,673,574	$	22,406,349	4101
GRF	200-546	Charge-Off Supplement	$	39,191,433	$	28,684,104	4102
GRF	200-552	County MR/DD Boards Vehicle Purchases	$	1,666,204	$	1,666,204	4103
GRF	200-553	County MR/DD Boards Transportation Operating	$	9,575,910	$	9,575,910	4104
GRF	200-558	Emergency Loan Interest Subsidy	$	4,500,000	$	3,300,000	4105
GRF	200-566	OhioReads Grants	$	27,148,000	$	27,148,000	4106
GRF	200-570	School Improvement Incentive Grants	$	837,500	$	987,500	4107
GRF	200-574	Substance Abuse Prevention	$	1,948,200	$	1,948,200	4108
GRF	200-580	Bethel School Cleanup	$	65,000	$	65,000	4109
GRF	200-901	Property Tax Allocation - Education	$	707,700,000	$	743,000,000	4110
GRF	200-906	Tangible Tax Exemption - Education	$	73,500,000	$	75,700,000	4111
TOTAL GRF General Revenue Fund			$	6,786,869,283	$	7,164,480,070	4112

General Services Fund Group

4113

138	200-606	Information Technology	$	6,629,469	$	6,761,034	4114
4D1	200-602	Ohio Prevention/Education Resource Center	$	345,000	$	345,000	4115
4L2	200-681	Teacher Certification and Licensure	$	4,684,143	$	4,856,290	4116
452	200-638	Miscellaneous Revenue	$	1,045,000	$	1,045,000	4117
5H3	200-687	School District Solvency Assistance	$	24,000,000	$	24,000,000	4118
596	200-656	Ohio Career Information System	$	743,217	$	769,230	4119
TOTAL GSF General Services							4120
Fund Group			$	37,446,829	$	37,776,554	4121

Federal Special Revenue Fund Group

4122

3C5	200-661	Federal Dependent Care Programs	$	18,189,907	$	18,233,488	4123
3D1	200-664	Drug Free Schools	$	20,621,375	$	20,660,570	4124
3D2	200-667	Honors Scholarship Program	$	2,454,688	$	2,540,602	4125
3H9	200-605	Head Start Collaboration Project	$	250,000	$	250,000	4126
3M0	200-623	ESEA Chapter One	$	320,505,063	$	330,172,277	4127
3M1	200-678	ESEA Chapter Two	$	13,595,978	$	14,059,555	4128
3M2	200-680	Ind W/Disab Education Act	$	186,000,000	$	206,000,000	4129
3L6	200-617	Federal School Lunch	$	175,274,000	$	180,181,672	4130
3L7	200-618	Federal School Breakfast	$	45,746,000	$	47,026,888	4131
3L8	200-619	Child and Adult Care Programs	$	60,257,639	$	61,966,125	4132
3L9	200-621	Vocational Education Basic Grant	$	43,613,582	$	45,142,330	4133
3S2	200-641	Tech Literacy Transfer	$	15,183,430	$	15,183,430	4134
3T4	200-613	Public Charter Schools	$	4,887,260	$	5,055,185	4135
3T6	200-611	Class Size Reduction	$	63,000,000	$	65,000,000	4136
3U2	200-662	Teacher Quality Enhancement Grants	$	1,300,501	$	1,352,000	4137
3U3	200-665	Reading Excellence Grant Program	$	10,018,756	$	0	4138
3U6	200-675	Provision 2 & 3 Grant	$	191,050	$	0	4139
309	200-601	Educationally Disadvantaged	$	20,759,222	$	21,425,345	4140
366	200-604	Adult Basic Education	$	17,527,286	$	18,140,740	4141
367	200-607	School Food Services	$	10,089,884	$	10,408,199	4142
368	200-614	Veterans' Training	$	648,514	$	671,212	4143
369	200-616	Vocational Education	$	8,000,000	$	8,000,000	4144
370	200-624	Education of All Handicapped Children	$	1,364,246	$	1,410,908	4145
371	200-631	EEO Title IV	$	1,155,361	$	1,213,894	4146
374	200-647	E.S.E.A. Consolidated	$	110,094	$	110,094	4147
378	200-660	Math/Science Technology Investments	$	12,696,055	$	13,036,530	4148
TOTAL FED Federal Special							4149
Revenue Fund Group			$	1,053,439,891	$	1,087,241,044	4150

State Special Revenue Fund Group

4151

4R7	200-695	Indirect Cost Recovery	$	3,942,779	$	4,168,947	4152
4V7	200-633	Interagency Vocational Support	$	695,197	$	731,674	4153
053	200-900	School District Property Tax Replacement	$	102,000,000	$	115,911,593	4154
454	200-610	Guidance and Testing	$	940,636	$	956,761	4155
455	200-608	Commodity Foods	$	10,000,000	$	11,000,000	4156
598	200-659	Auxiliary Services Mobile Units	$	1,328,910	$	1,328,910	4157
620	200-615	Educational Grants	$	1,525,000	$	1,525,000	4158
TOTAL SSR State Special Revenue							4159
Fund Group			$	120,432,522	$	135,622,885	4160

Lottery Profits Education Fund Group

4161

017	200-612	Base Cost Funding	$	604,000,000		$	596,000,000	4162
017	200-682	Lease Rental Payment Reimbursement	$	29,722,100		$	~~25,722,600~~ 35,722,600	4163
TOTAL LPE Lottery Profits								4164
Education Fund Group			$	633,722,100		$	~~621,722,600~~	4165
			631,722,600		4166
TOTAL ALL BUDGET FUND GROUPS			$	8,631,910,625		$	~~9,046,843,153~~	4167
			9,056,843,153		4168

Sec. 44.19. LOTTERY PROFITS EDUCATION FUND

4170

Appropriation item 200-612, Base Cost Funding (Fund 017),	4171
shall be used in conjunction with appropriation item 200-501, Base	4172
Cost Funding (GRF), to provide payments to school districts	4173
pursuant to Chapter 3317. of the Revised Code.	4174

Of the foregoing appropriation item 200-612, Base Cost	4175
Funding (Fund 017), $25,000,000 in each fiscal year shall be used	4176
from the funds transferred from the Unclaimed Prizes Trust Fund	4177
pursuant to the section entitled "Transfers from the Unclaimed	4178
Prizes Fund" of ~~this act~~Am. Sub. H.B. 94 of the 124th General	4179
Assembly.	4180

The Department of Education, with the approval of the	4181
Director of Budget and Management, shall determine the monthly	4182
distribution schedules of appropriation item 200-501, Base Cost	4183
Funding (GRF), and appropriation item 200-612, Base Cost Funding	4184
(Fund 017). If adjustments to the monthly distribution schedule	4185
are necessary, the Department of Education shall make such	4186
adjustments with the approval of the Director of Budget and	4187
Management.	4188

Of the foregoing appropriation item 200-682, Lease Rental	4189
Payment Reimbursement (Fund 017), $10,000,000 in fiscal year 2003	4190
shall be used from the funds transferred from the Unclaimed Prizes	4191
Trust Fund pursuant to the paragraph with the heading "Transfers	4192
from the Unclaimed Prizes Fund" in Am. Sub. H.B. 94 of the 124th	4193
General Assembly.	4194

The Director of Budget and Management shall transfer via	4195
intrastate transfer voucher the amount appropriated under the	4196
Lottery Profits Education Fund for appropriation item 200-682,	4197
Lease Rental Payment Reimbursement, to the General Revenue Fund on	4198
a schedule determined by the director. These funds shall support	4199
the appropriation item 230-428, Lease Rental Payments (GRF), of	4200
the School Facilities Commission.	4201

LOTTERY PROFITS TRANSFERS*

4202

On the fifteenth day of May of each fiscal year, the Director	4203
of Budget and Management shall determine if lottery profits	4204
transfers will meet the appropriation amounts from the Lottery	4205
Profits Education Fund.	4206

On or after the date specified in each fiscal year, if the	4207
director determines that lottery profits will not meet	4208
appropriations and if other funds are not available to meet the	4209
shortfall, the Superintendent of Public Instruction shall take the	4210
actions specified under the "Reallocation of Funds" section of	4211
~~this act~~Am. Sub. H.B. 94 of the 124th General Assembly.	4212

TRANSFERS FROM THE UNCLAIMED PRIZES FUND

4213

By the fifteenth day of January, or as soon as possible	4214
thereafter, of fiscal year 2002 and fiscal year 2003, the Director	4215
of Budget and Management shall respectively transfer $25,000,000	4216
for fiscal year 2002 and $35,000,000 for fiscal year 2003 from	4217
the State Lottery Commission's Unclaimed Prizes Fund to the	4218
Lottery Profits Education Fund, to be used solely for purposes	4219
specified in the Department of Education's budget. Transfers of	4220
unclaimed prizes under this provision shall not count as lottery	4221
profits in the determination made concerning excess profits titled	4222
"Lottery Profits" under the Department of Education in ~~this act~~	4223
Am. Sub. H.B. 94 of the 124th General Assembly.	4224

TEACHER CERTIFICATION AND LICENSURE

4225

The foregoing appropriation item 200-681, Teacher	4226
Certification and Licensure, shall be used by the Department of	4227
Education in each year of the biennium to administer teacher	4228
certification and licensure functions pursuant to sections	4229
3301.071, 3301.074, 3301.50, 3301.51, 3319.088, 3319.22, 3319.24	4230
to 3319.28, 3319.281, 3319.282, 3319.29, 3319.301, 3319.31, and	4231
3319.51 of the Revised Code.	4232

Sec. 63.07. MEDICAID PROGRAM SUPPORT FUND - STATE

4233

The foregoing appropriation item 600-671, Medicaid Program	4234
Support, shall be used by the Department of Job and Family	4235
Services to pay for Medicaid services and contracts.	4236

HEALTH CARE SERVICES ADMINISTRATION

4237

The foregoing appropriation item 600-654, Health Care	4238
Services Administration, shall be used by the Department of Job	4239
and Family Services for costs associated with the administration	4240
of the Medicaid program.	4241

HEALTH CARE SERVICES ADMINISTRATION FUND

4242

For fiscal year 2003, the Director of Job and Family	4243
Services may deposit revenue received from federal reimbursement	4244
for allowable Title XIX administrative expenditures made by state	4245
or local entities into the Health Care Services Administration	4246
Fund (Fund 5U3).	4247

Of the amount received by the Department of Job and Family	4248
Services during fiscal year 2003 from the first installment of	4249
assessments paid under section 5112.06 of the Revised Code and	4250
intergovernmental transfers made under section 5112.07 of the	4251
Revised Code, the Director of Job and Family Services shall	4252
deposit $175,000 into the state treasury to the credit of the	4253
Health Care Services Administration Fund (Fund 5U3).	4254

Sec. 63.35. (A) As used in this section:

4255

(1) "Medicaid days" means all days during which a resident	4256
who is a Medicaid recipient occupies a bed in a nursing facility	4257
that is included in the facility's certified capacity under Title	4258
XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C.A.	4259
1396, as amended. Therapeutic or hospital leave days for which	4260
payment is made under section 5111.33 of the Revised Code are	4261
considered Medicaid days proportionate to the percentage of the	4262
nursing facility's per resident per day rate paid for those days.	4263

(2) "Nursing facility" has the same meaning as in section	4264
5111.20 of the Revised Code.	4265

(3) "Total per diem rate" includes the payments made to	4266
nursing facilities under division (B) of the section of ~~this act~~	4267
Am. Sub. H.B. 94 of the 124th General Assembly titled "Nursing	4268
Facility Stabilization Fund."	4269

(B) Notwithstanding sections 5111.20 to 5111.32 of the	4270
Revised Code, rates paid to nursing facilities under the Medicaid	4271
program shall be subject to the following limitations:	4272

(1) For fiscal year 2002, the mean total per diem rate for	4273
all nursing facilities in the state, weighted by Medicaid days and	4274
calculated as of July 1, 2001, under sections 5111.20 to 5111.32	4275
of the Revised Code, shall not exceed $143.92.	4276

(2) For fiscal year 2003, the mean total per diem rate for	4277
all nursing facilities in the state, weighted by Medicaid days and	4278
calculated as of July 1, 2002, under sections 5111.20 to 5111.32	4279
of the Revised Code, shall not exceed ~~$152.66~~$153.41, plus any	4280
difference between $143.92 and the mean total per diem rate for	4281
all nursing facilities in the state for fiscal year 2002, weighted	4282
by Medicaid days and calculated as of July 1, 2001, under sections	4283
5111.20 to 5111.32 of the Revised Code.	4284

(3) If the mean total per diem rate for all nursing	4285
facilities in the state for fiscal year 2002 or 2003, weighted by	4286
Medicaid days and calculated under sections 5111.20 to 5111.32 of	4287
the Revised Code as of the first day of July of the calendar year	4288
in which the fiscal year begins, exceeds the amount specified for	4289
that fiscal year in division (B)(1) or (2) of this section, the	4290
Department of Job and Family Services shall reduce the total per	4291
diem rate for each nursing facility in the state by a percentage	4292
that is equal to the percentage by which the mean total per diem	4293
rate exceeds the amount specified in division (B)(1) or (2) of	4294
this section for that fiscal year.	4295

(4) Subsequent to any reduction required by division (B)(1),	4296
(2), or (3) of this section, a nursing facility's rate shall be	4297
subject to any adjustments required or authorized by sections	4298
5111.20 to 5111.32 of the Revised Code during the remainder of the	4299
fiscal year.	4300

(C) Except as follows, the Department of Job and Family	4301
Services shall continue to implement rules adopted under sections	4302
5111.02 and 5111.20 to 5111.32 of the Revised Code regarding	4303
Medicaid payments to nursing facilities that are in effect on the	4304
effective date of this section:	4305

(1) The Department shall not continue to implement a rule	4306
that is inconsistent with ~~this act~~Am. Sub. H.B. 94 of the 124th	4307
General Assembly, but shall instead implement this act.	4308

(2) The Department may adopt, amend, or rescind rules under	4309
sections 5111.02 and 5111.20 to 5111.32 of the Revised Code as	4310
provided by those sections to the extent those sections are	4311
consistent with ~~this act~~Am. Sub. H.B. 94 of the 124th General	4312
Assembly.	4313

Sec. 75.02. COMMUNITY SERVICES

4314

General Revenue Fund

4315

GRF	322-405	State Use Program	$	264,685	$	264,685	4316
GRF	322-413	Residential and Support	$	154,418,317	$	164,539,811	4317
		Services					4318
GRF	322-451	Family Support Services	$	7,975,870	$	7,975,870	4319
GRF	322-452	Case Management	$	8,984,491	$	9,874,628	4320
GRF	322-501	County Boards Subsidies	$	45,366,297	$	46,817,644	4321
TOTAL GRF General Revenue Fund			$	217,009,660	$	229,722,638	4322

General Services Fund Group

4323

4J6	322-645	Intersystem Services for	$	5,000,000	$	5,000,000	4324
		Children					4325
4U4	322-606	Community MR and DD Trust	$	125,000	$	131,250	4326
4V1	322-611	Program Support	$	2,000,000	$	2,000,000	4327
488	322-603	Residential Services	$	2,499,188	$	2,499,188	4328
		Refund					4329
TOTAL GSF General Services							4330
Fund Group			$	9,624,188	$	9,630,438	4331

Federal Special Revenue Fund Group

4332

3A4	322-605	Community Program Support	$	3,024,047	$	3,326,452	4333
3A4	322-610	Community Residential	$	5,924,858	$	5,924,858	4334
		Support					4335
3A5	322-613	DD Council Grants	$	3,358,290	$	3,358,290	4336
3G6	322-639	Medicaid Waiver	$	148,304,949	$	151,754,169	4337
3M7	322-650	CAFS Medicaid	$	163,747,903	$	172,568,939	4338
325	322-608	Federal Grants -	$	1,360,000	$	1,360,000	4339
		Operating Expenses					4340
325	322-612	Social Service Block	$	11,500,000	$	11,500,000	4341
		Grant					4342
325	322-617	Education Grants -	$	115,000	$	115,000	4343
		Operating					4344
TOTAL FED Federal Special Revenue							4345
Fund Group			$	337,335,047	$	349,907,708	4346

State Special Revenue Fund Group

4347

4K8	322-604	Waiver - Match	$	13,783,463	$	14,039,133	4348
5H0	322-619	Medicaid Repayment	$	562,080	$	576,132	4349
TOTAL SSR State Special Revenue							4350
Fund Group			$	14,345,543	$	14,615,265	4351
TOTAL ALL COMMUNITY SERVICES							4352
BUDGET FUND GROUPS			$	578,314,438	$	603,626,049	4353

RESIDENTIAL AND SUPPORT SERVICES

4354

The foregoing appropriation item 322-413, Residential and	4355
Support Services, shall be used for any of the following:	4356

(A) Home and community-based waiver services pursuant to	4357
Title XIX of the "Social Security Act," 49 Stat. 620 (1935), 42	4358
U.S.C. 301, as amended;	4359

(B) Services contracted by county boards of mental	4360
retardation and developmental disabilities;	4361

(C) Supported living services contracted by county boards of	4362
mental retardation and developmental disabilities in accordance	4363
with sections 5126.40 to 5126.47 of the Revised Code;	4364

(D) Sermak Class Services used to implement the requirements	4365
of the consent decree in Sermak v. Manuel, Case No. c-2-80-220,	4366
United States District Court for the Southern District of Ohio,	4367
Eastern Division;	4368

(E) Other Medicaid-reimbursed programs, in an amount not to	4369
exceed $1,000,000 in each fiscal year, that enable persons with	4370
mental retardation and developmental disabilities to live in the	4371
community.	4372

Notwithstanding Chapters 5123. and 5126. of the Revised Code,	4373
the Department of Mental Retardation and Developmental	4374
Disabilities may develop residential and support service programs	4375
that enable persons with mental retardation and developmental	4376
disabilities to live in the community. Notwithstanding Chapter	4377
5121. and section 5123.122 of the Revised Code, the department may	4378
waive the support collection requirements of those statutes for	4379
persons in community programs developed by the department under	4380
this section. The department shall adopt rules under Chapter 119.	4381
of the Revised Code or may use existing rules for the	4382
implementation of these programs.	4383

The Department of Mental Retardation and Developmental	4384
Disabilities may designate a portion of appropriation item	4385
332-413, Residential and Support Services, to county boards of	4386
mental retardation and developmental disabilities that have	4387
greater need for various residential and support services due to a	4388
low percentage of residential and support services development in	4389
comparison to the number of individuals with mental retardation or	4390
developmental disabilities in the county.	4391

Not later than 30 days after the effective date of this	4392
section, the Director of Budget and Management shall transfer up	4393
to $5,000,000 from appropriation item 322-413, Residential and	4394
Support Services, to appropriation item 322-501, County Boards	4395
Subsidies. The total amount that is transferred from appropriation	4396
item 322-413 to appropriation item 322-501 shall be used for the	4397
tax equalization program ~~created~~ under ~~sections 5126.16 to~~section	4398
5126.18 of the Revised Code, as amended and renumbered by S.B. 261	4399
of the 124th General Assembly, and is subject to all statutes and	4400
rules established for the tax equalization program.	4401

Not later than July 30, 2002, the Director of Budget and	4402
Management shall transfer up to $11,500,000 from appropriation	4403
item 322-413, Residential and Support Services, to appropriation	4404
item 322-501, County Boards Subsidies. The total amount that is	4405
transferred from appropriation item 322-413 to appropriation item	4406
322-501 shall be used for the tax equalization program ~~created~~	4407
under ~~sections 5126.16 to~~section 5126.18 of the Revised Code, as	4408
amended and renumbered by S.B. 261 of the 124th General Assembly,	4409
and is subject to all statutes and rules established for the tax	4410
equalization program.	4411

Of the foregoing appropriation item 322-413, Residential and	4412
Support Services, $9,700,000 in fiscal year 2002 and $9,850,000 in	4413
fiscal year 2003 shall be distributed by the Department to county	4414
boards of mental retardation and developmental disabilities to	4415
support existing residential facilities waiver and individual	4416
options waiver related Medicaid activities provided for in the	4417
component of a county board's plan developed under division (A)(2)	4418
of section 5126.054 of the Revised Code and approved under section	4419
5123.046 of the Revised Code. Up to $3,000,000 of these funds in	4420
each fiscal year may be used to implement day-to-day program	4421
management services under division (A)(2) of section 5126.054 of	4422
the Revised Code. Up to $4,200,000 in each fiscal year may be used	4423
to implement the program and health and welfare requirements of	4424
division (A)(2) of section 5126.054 of the Revised Code.	4425

In fiscal years 2002 and 2003, not less than $2,500,000 and	4426
$2,650,000, respectively, of these funds shall be used to recruit	4427
and retain, under division (A)(2) of section 5126.054 of the	4428
Revised Code, the direct care staff necessary to implement the	4429
services included in an individualized service plan in a manner	4430
that ensures the health and welfare of the individuals being	4431
served.	4432

FAMILY SUPPORT SERVICES

4433

Notwithstanding sections 5123.171, 5123.19, 5123.20, and	4434
5126.11 of the Revised Code, the Department of Mental Retardation	4435
and Developmental Disabilities may implement programs funded by	4436
appropriation item 322-451, Family Support Services, to provide	4437
assistance to persons with mental retardation or developmental	4438
disabilities and their families who are living in the community.	4439
The department shall adopt rules to implement these programs.	4440

CASE MANAGEMENT

4441

The foregoing appropriation item 322-452, Case Management,	4442
shall be allocated to county boards of mental retardation and	4443
developmental disabilities for the purpose of providing case	4444
management services and to assist in bringing state funding for	4445
all department-approved case managers within county boards of	4446
mental retardation and developmental disabilities to the level	4447
authorized in division (C) of section 5126.15 of the Revised Code.	4448
The department may request approval from the Controlling Board to	4449
transfer any unobligated appropriation authority from other state	4450
General Revenue Fund appropriation items within the department's	4451
budget to appropriation item 322-452, Case Management, to be used	4452
to meet the statutory funding level in division (C) of section	4453
5126.15 of the Revised Code.	4454

Notwithstanding division (C) of section 5126.15 of the	4455
Revised Code and subject to funding in appropriation item 322-452,	4456
Case Management, no county may receive less than its allocation in	4457
fiscal year 1995.	4458

STATE SUBSIDIES TO MR/DD BOARDS

4459

Of the foregoing appropriation item 322-501, County Boards	4460
Subsidies, $6,500,000 in fiscal year 2002 and $13,000,000 in	4461
fiscal year 2003 shall be used to fund the tax equalization	4462
program ~~created~~ under ~~sections 5126.16 to~~section 5126.18 of the	4463
Revised Code, as amended and renumbered by S.B. 261 of the 124th	4464
General Assembly, for county boards of mental retardation and	4465
developmental disabilities. ~~The tax equalization program shall~~	4466
~~utilize the average daily membership of adults 22 years of age and~~	4467
~~older in habilitation, vocational, and community employment~~	4468
~~services only for the yield on 1/2 mills.~~	4469

After funding the tax equalization program, the Department of	4470
Mental Retardation and Developmental Disabilities shall distribute	4471
~~the~~any remaining appropriation authority in appropriation item	4472
322-501, County Boards Subsidies, to county boards of mental	4473
retardation and developmental disabilities for subsidies	4474
distributed pursuant to section 5126.12 of the Revised Code to the	4475
limit of the lesser of the amount required by that section or the	4476
remaining balance of the appropriation authority in appropriation	4477
item 322-501 prorated to all county boards of mental retardation	4478
and developmental disabilities.	4479

INTERSYSTEM SERVICES FOR CHILDREN

4480

The foregoing appropriation item 322-645, Intersystem	4481
Services for Children, shall be used to support direct grants to	4482
county family and children first councils created under section	4483
121.37 of the Revised Code. The funds shall be used as partial	4484
support payment and reimbursement for locally coordinated	4485
treatment plans for multi-needs children that come to the	4486
attention of the Family and Children First Cabinet Council	4487
pursuant to section 121.37 of the Revised Code. The Department of	4488
Mental Retardation and Developmental Disabilities may use up to	4489
five per cent of this amount for administrative expenses	4490
associated with the distribution of funds to the county councils.	4491

WAIVER - MATCH

4492

The foregoing appropriation item 322-604, Waiver-Match (Fund	4493
4K8), shall be used as state matching funds for the home and	4494
community-based waivers.	4495

The Department of Job and Family Services may enter into an	4496
interagency agreement with the Department of Mental Retardation	4497
and Developmental Disabilities providing for the Department of	4498
Mental Retardation and Developmental Disabilities to operate the	4499
program.	4500

Sec. 94. BOR BOARD OF REGENTS

4501

General Revenue Fund

4502

GRF	235-321	Operating Expenses	$	3,137,394	$	3,137,394	4503
GRF	235-401	Lease-Rental Payments	$	295,058,500	$	268,910,500	4504
GRF	235-402	Sea Grants	$	299,940	$	299,940	4505
GRF	235-403	Math/Science Teaching Improvement	$	1,984,000	$	2,018,680	4506
GRF	235-404	College Readiness Initiatives	$	2,500,000	$	2,500,000	4507
GRF	235-406	Articulation and Transfer	$	800,000	$	800,000	4508
GRF	235-408	Midwest Higher Education Compact	$	75,000	$	75,000	4509
GRF	235-409	Information System	$	1,362,023	$	1,362,023	4510
GRF	235-414	State Grants and Scholarship Administration	$	1,373,420	$	1,373,420	4511
GRF	235-415	Jobs Challenge	$	10,100,000	$	10,200,000	4512
GRF	235-417	Ohio Learning Network	$	3,920,000	$	3,920,000	4513
GRF	235-418	Access Challenge	$	62,268,000	$	62,268,000	4514
GRF	235-420	Success Challenge	$	47,041,000	$	47,041,000	4515
GRF	235-428	Appalachian New Economy Partnership	$	1,000,000	$	1,500,000	4516
GRF	235-451	Eminent Scholars	$	0	$	3,000,000	4517
GRF	235-454	Research Challenge	$	20,000,000	$	20,000,000	4518
GRF	235-455	Productivity Improvement Challenge	$	1,694,947	$	1,728,845	4519
GRF	235-474	Area Health Education Centers Program Support	$	2,093,727	$	2,135,601	4520
GRF	235-477	Access Improvement Projects	$	1,110,879	$	1,110,879	4521
GRF	235-501	State Share of Instruction	$	1,659,011,727	$	1,668,611,581	4522
GRF	235-502	Student Support Services	$	1,000,000	$	1,000,000	4523
GRF	235-503	Ohio Instructional Grants	$	98,000,000	$	111,500,000	4524
GRF	235-504	War Orphans Scholarships	$	4,652,548	$	4,792,124	4525
GRF	235-507	OhioLINK	$	7,668,731	$	7,668,731	4526
GRF	235-508	Air Force Institute of Technology	$	2,000,000	$	2,000,000	4527
GRF	235-509	Displaced Homemakers	$	240,096	$	240,096	4528
GRF	235-510	Ohio Supercomputer Center	$	4,833,574	$	4,833,574	4529
GRF	235-511	Cooperative Extension Service	$	27,708,525	$	27,708,525	4530
GRF	235-513	OU Voinovich Center	$	367,500	$	367,500	4531
GRF	235-514	Central State Supplement	$	12,044,956	$	12,044,956	4532
GRF	235-515	Case Western Reserve University School of Medicine	$	4,280,224	$	4,281,936	4533
GRF	235-519	Family Practice	$	6,538,471	$	6,541,087	4534
GRF	235-520	Shawnee State Supplement	$	2,272,000	$	2,272,000	4535
GRF	235-521	OSU Glenn Institute	$	367,500	$	367,500	4536
GRF	235-524	Police and Fire Protection	$	240,096	$	240,096	4537
GRF	235-525	Geriatric Medicine	$	1,087,195	$	1,108,939	4538
GRF	235-526	Primary Care Residencies	$	3,166,168	$	3,229,491	4539
GRF	235-527	Ohio Aerospace Institute	$	2,383,334	$	2,383,334	4540
GRF	235-530	Academic Scholarships	$	8,000,000	$	8,000,000	4541
GRF	235-531	Student Choice Grants	$	52,428,000	$	53,476,560	4542
GRF	235-534	Student Workforce Development Grants	$	1,200,000	$	1,200,000	4543
GRF	235-535	Ohio Agricultural Research and Development Center	$	38,730,884	$	38,730,884	4544
GRF	235-536	Ohio State University Clinical Teaching	$	15,989,883	$	15,996,281	4545
GRF	235-537	University of Cincinnati Clinical Teaching	$	13,151,461	$	13,156,724	4546
GRF	235-538	Medical College of Ohio at Toledo Clinical Teaching	$	10,250,851	$	10,254,953	4547
GRF	235-539	Wright State University Clinical Teaching	$	4,980,064	$	4,982,057	4548
GRF	235-540	Ohio University Clinical Teaching	$	4,814,378	$	4,816,305	4549
GRF	235-541	Northeastern Ohio Universities College of Medicine Clinical Teaching	$	4,951,583	$	4,953,565	4550
GRF	235-543	Ohio College of Podiatric Medicine Clinical Subsidy	$	499,800	$	500,000	4551
GRF	235-547	School of International Business	$	1,708,764	$	1,708,764	4552
GRF	235-549	Part-time Student Instructional Grants	$	13,311,638	$	13,977,219	4553
GRF	235-552	Capital Component	$	14,537,639	$	14,537,639	4554
GRF	235-553	Dayton Area Graduate Studies Institute	$	3,779,088	$	3,779,088	4555
GRF	235-554	Computer Science Graduate Education	$	3,482,368	$	3,482,368	4556
GRF	235-555	Library Depositories	$	1,999,200	$	2,039,184	4557
GRF	235-556	Ohio Academic Resources Network	$	3,510,777	$	3,580,993	4558
GRF	235-558	Long-term Care Research	$	312,004	$	312,004	4559
GRF	235-561	Bowling Green State University Canadian Studies Center	$	164,289	$	164,289	4560
GRF	235-572	Ohio State University Clinic Support	$	2,061,138	$	2,061,138	4561
GRF	235-583	Urban University Programs	$	6,503,559	$	6,503,559	4562
GRF	235-585	Ohio University Innovation Center	$	48,750	$	48,750	4563
GRF	235-587	Rural University Projects	$	1,375,552	$	1,375,552	4564
GRF	235-588	Ohio Resource Center for Mathematics, Science, and Reading	$	980,000	$	980,000	4565
GRF	235-595	International Center for Water Resources Development	$	185,593	$	185,593	4566
GRF	235-596	Hazardous Materials Program	$	390,096	$	390,096	4567
GRF	235-599	National Guard Scholarship Program	$	12,048,106	$	12,048,106	4568
GRF	235-909	Higher Education General Obligation Debt Service	$	50,055,100	$	74,344,100	4569
TOTAL GRF General Revenue Fund			$	~~2,565,132.040~~ 2,565,132,040	$	~~2,589,158,523~~ 2,592,158,523	4570

General Services Fund Group

4571

456	235-603	Publications	$	43,050	$	44,342	4572
456	235-613	Job Preparation Initiative	$	144,383	$	144,383	4573
TOTAL GSF General Services							4574
Fund Group			$	187,433	$	188,725	4575

Federal Special Revenue Fund Group

4576

3H2	235-608	Human Services Project	$	1,500,000	$	1,500,000	4577
3N6	235-605	State Student Incentive Grants	$	2,000,000	$	2,000,000	4578
3T0	235-610	NHSC Ohio Loan Repayment	$	100,000	$	100,000	4579
312	235-609	Tech Prep	$	183,852	$	183,852	4580
312	235-611	Gear-up Grant	$	1,590,986	$	1,690,434	4581
312	235-612	Carl D. Perkins Grant/Plan Administration	$	112,960	$	112,960	4582
312	235-631	Federal Grants	$	2,055,511	$	0	4583
TOTAL FED Federal Special Revenue							4584
Fund Group			$	7,543,309	$	5,587,246	4585

State Special Revenue Fund Group

4586

4E8	235-602	HEFC Administration	$	13,080	$	13,900	4587
4P4	235-604	Physician Loan Repayment	$	416,067	$	436,870	4588
649	235-607	Ohio State University Highway/Transportation Research	$	855,021	$	760,000	4589
682	235-606	Nursing Loan Program	$	870,000	$	893,000	4590
TOTAL SSR State Special Revenue							4591
Fund Group			$	2,154,168	$	2,103,770	4592
TOTAL ALL BUDGET FUND GROUPS			$	2,575,016,950	$	~~2,597,038,264~~ 2,600,038,264	4593

Sec. 94.02. MISSION-BASED CORE FUNDING FOR HIGHER EDUCATION

4595

JOBS CHALLENGE

4596

Funds appropriated to appropriation item 235-415, Jobs	4597
Challenge, shall be distributed to state-assisted community and	4598
technical colleges, regional campuses of state-assisted	4599
universities, and other organizationally distinct and identifiable	4600
member campuses of the EnterpriseOhio Network in support of	4601
noncredit job-related training. In fiscal years 2002 and 2003,	4602
$2,114,673 and $1,981,841, respectively, shall be distributed as	4603
performance grants to EnterpriseOhio Network campuses based upon	4604
each campus's documented performance according to criteria	4605
established by the Board of Regents for increasing training and	4606
related services to businesses, industries, and public sector	4607
organizations.	4608

Of the foregoing appropriation item 235-415, Jobs Challenge,	4609
$3,130,087 in fiscal year 2002 and $2,875,953 in fiscal year 2003	4610
shall be allocated to the Targeted Industries Training Grant	4611
Program to attract, develop, and retain business and industry	4612
strategically important to the state's economy.	4613

Also, in fiscal years 2002 and 2003, $2,991,513 and	4614
$3,629,797, respectively, shall be allocated to the Non-credit	4615
Incentives Grant Program to reward two-year campuses for	4616
increasing the amount of non-credit skill upgrading services	4617
provided to Ohio employers and employees. The funds shall be	4618
distributed to campuses in proportion to each campus's share of	4619
noncredit job-related training revenues received by all campuses	4620
for the previous fiscal year. It is the intent of the General	4621
Assembly that this workforce development incentive component of	4622
the Jobs Challenge Program reward campus noncredit job-related	4623
training efforts in the same manner that the Research Challenge	4624
Program rewards campuses for their ability to obtain sponsored	4625
research revenues.	4626

Of the foregoing appropriation item 235-415, Jobs Challenge,	4627
$1,863,726 in fiscal year 2002 and $1,712,409 in fiscal year 2003	4628
shall be allocated as an incentive to support local EnterpriseOhio	4629
Network Campus/Adult Workforce Education Center Partnerships. The	4630
purpose of the partnerships is to promote and deliver coordinated,	4631
comprehensive training to local employers. Each partnership shall	4632
include a formal agreement between one or more EnterpriseOhio	4633
Network campus and one or more adult workforce education center	4634
for the delivery of training services.	4635

ACCESS CHALLENGE

4636

In each fiscal year, the foregoing appropriation item	4637
235-418, Access Challenge, shall be distributed to Ohio's	4638
state-assisted access colleges and universities. For the	4639
purposes of this allocation, "access campuses" includes	4640
state-assisted community colleges, state community colleges,	4641
technical colleges, Shawnee State University, Central State	4642
University, Cleveland State University, the regional campuses of	4643
state-assisted universities, and, where they are organizationally	4644
distinct and identifiable, the community-technical colleges	4645
located at the University of Cincinnati, Youngstown State	4646
University, and the University of Akron.	4647

In fiscal years 2002 and 2003, Access Challenge subsidies	4648
shall be distributed by the Board of Regents to eligible access	4649
campuses on the basis of each campus's share of fiscal year 1999	4650
all-terms subsidy eligible General Studies FTEs. For the purpose	4651
of these calculations, the average all-terms subsidy eligible	4652
General Studies FTEs for Youngstown State University's eligible	4653
Comm-Tech enrollments shall equal 348.	4654

For the purposes of this calculation, Cleveland State	4655
University's enrollments shall be adjusted by the ratio of the sum	4656
of subsidy-eligible lower-division FTE student enrollments	4657
eligible for access funding to the sum of subsidy-eligible General	4658
Studies FTE student enrollments at Central State University and	4659
Shawnee State University, and for the following universities and	4660
their regional campuses: Ohio State University, Ohio University,	4661
Kent State University, Bowling Green State University, Miami	4662
University, the University of Cincinnati, the University of Akron,	4663
and Wright State University.	4664

SUCCESS CHALLENGE

4665

The foregoing appropriation item 235-420, Success Challenge,	4666
shall be used by the Board of Regents to promote degree	4667
completion by students enrolled at a main campus of a	4668
state-assisted university.	4669

In each fiscal year, two-thirds of the appropriations shall	4670
be distributed to state-assisted university main campuses in	4671
proportion to each campus's share of the total statewide	4672
bachelor's degrees granted by university main campuses to	4673
"at-risk" students. In fiscal years 2002 and 2003, an "at-risk"	4674
student means any undergraduate student who has received an Ohio	4675
Instructional Grant during the past ten years. An eligible	4676
institution shall not receive its share of this distribution until	4677
it has submitted a plan that addresses how the subsidy will be	4678
used to better serve at-risk students and increase their	4679
likelihood of successful completion of a bachelor's degree	4680
program. The Board of Regents shall disseminate to all	4681
state-supported institutions of higher education all such plans	4682
submitted by institutions that received Success Challenge funds.	4683

In each fiscal year, one-third of the appropriations shall be	4684
distributed to university main campuses in proportion to each	4685
campus's share of the total bachelor's degrees granted by	4686
university main campuses to undergraduate students who completed	4687
their bachelor's degrees in a "timely manner" in the previous	4688
fiscal year. For the purposes of this section, "timely manner"	4689
means the normal time it would take for a full-time degree-seeking	4690
undergraduate student to complete the student's degree. Generally,	4691
for such students pursuing a bachelor's degree, "timely manner"	4692
means four years. Exceptions to this general rule shall be	4693
permitted for students enrolled in programs specifically designed	4694
to be completed in a longer time period. The Board of Regents	4695
shall collect base-line data beginning with the 1998-99 academic	4696
year to assess the timely completion statistics by university main	4697
campuses.	4698

EMINENT SCHOLARS

4699

The foregoing appropriation item 235-451, Eminent Scholars,	4700
shall be used by the Ohio Board of Regents to establish an Ohio	4701
Eminent Scholars Program, the purpose of which is to invest	4702
educational resources to address problems that are of vital	4703
statewide significance while fostering the growth in eminence of	4704
Ohio's academic programs. Endowment grants of $750,000 to state	4705
colleges and universities and nonprofit Ohio institutions of	4706
higher education holding certificates of authorization issued	4707
under section 1713.02 of the Revised Code to match endowment gifts	4708
from nonstate sources may be made in accordance with a plan	4709
established by the Ohio Board of Regents. Matching gifts in	4710
science and technology programs shall be $750,000, and in all	4711
other program areas, $500,000. The grants shall have as their	4712
purpose attracting and sustaining in Ohio scholar-leaders of	4713
national or international prominence, each of whom will assist the	4714
state in one of the following three areas: (1) improving the	4715
state's economic development; (2) strengthening the state's	4716
system of K-12 education; or (3) improving public health and	4717
safety. Such scholar-leaders shall, among their duties, share	4718
broadly the benefits and knowledge unique to their fields of	4719
scholarship to the betterment of Ohio and its people.	4720

RESEARCH CHALLENGE

4721

The foregoing appropriation item 235-454, Research Challenge,	4722
shall be used to enhance the basic research capabilities of public	4723
colleges and universities and accredited Ohio institutions of	4724
higher education holding certificates of authorization issued	4725
pursuant to section 1713.02 of the Revised Code, in order to	4726
strengthen academic research for pursuing Ohio's economic	4727
redevelopment goals. The Board of Regents, in consultation with	4728
the colleges and universities, shall administer the Research	4729
Challenge Program and utilize a means of matching, on a fractional	4730
basis, external funds attracted in the previous year by	4731
institutions for basic research. The program may include	4732
incentives for increasing the amount of external research funds	4733
coming to eligible institutions and for focusing research efforts	4734
upon critical state needs. Colleges and universities shall submit	4735
for review and approval to the Board of Regents plans for the	4736
institutional allocation of state dollars received through the	4737
program. The institutional plans shall provide the rationale for	4738
the allocation in terms of the strategic targeting of funds for	4739
academic and state purposes, for strengthening research programs,	4740
and for increasing the amount of external research funds, and	4741
shall include an evaluation process to provide results of the	4742
increased support.	4743

The Board of Regents shall submit a biennial report of	4744
progress to the General Assembly.	4745

COMPUTER SCIENCE GRADUATE EDUCATION

4746

The foregoing appropriation item 235-554, Computer Science	4747
Graduate Education, shall be used by the Board of Regents to	4748
support improvements in graduate programs in computer science at	4749
state-assisted universities. In each fiscal year, up to $200,000	4750
may be used to support collaborative efforts in graduate education	4751
in this program area.	4752

Sec. 94.06. PLEDGE OF FEES*

4753

Any new pledge of fees, or new agreement for adjustment of	4754
fees, made in the 2001-2003 biennium to secure bonds or notes of a	4755
state-assisted institution of higher education for a project for	4756
which bonds or notes were not outstanding on the effective date of	4757
this section shall be effective only after approval by the Board	4758
of Regents, unless approved in a previous biennium.	4759

HIGHER EDUCATION GENERAL OBLIGATION DEBT SERVICE

4760

The foregoing appropriation item 235-909, Higher Education	4761
General Obligation Debt Service, shall be used to pay all debt	4762
service and financing costs at the times they are required to be	4763
made pursuant to sections 151.01 and 151.04 of the Revised Code	4764
during the period from July 1, 2001, to June 30, 2003. The Office	4765
of the Sinking Fund or the Director of Budget and Management shall	4766
effectuate the required payments by an interstate transfer	4767
voucher.	4768

~~Of the foregoing appropriation item 235-909, Higher Educatoin~~	4769
~~General Obligation Debt Service, surplus funds net of encumbrances~~	4770
~~from the appropriation for fiscal year 2002 shall be~~	4771
~~reappropriated to appropriation item 235-501, State Share of~~	4772
~~Instruction, for fiscal year 2003.~~	4773

LEASE RENTAL PAYMENTS

4774

The foregoing appropriation item 235-401, Lease Rental	4775
Payments, shall be used to meet all payments at the times they are	4776
required to be made during the period from July 1, 2001, to June	4777
30, 2003, by the Board of Regents pursuant to leases and	4778
agreements made under section 154.21 of the Revised Code, but	4779
limited to the aggregate amount of $563,969,000. Nothing in ~~this~~	4780
~~act~~Am. Sub. H.B. 94 of the 124th General Assembly shall be deemed	4781
to contravene the obligation of the state to pay, without	4782
necessity for further appropriation, from the sources pledged	4783
thereto, the bond service charges on obligations issued pursuant	4784
to section 154.21 of the Revised Code.	4785

~~Of the forgoing appropriation item 235-401, Lease-Rental~~	4786
~~Payments, surplus funds net of encumbrances from the appropriation~~	4787
~~for fiscal year 2002 shall be reappropriated to appropriation item~~	4788
~~235-501, State Share of Instruction, for fiscal year 2003.~~	4789

Sec. 94.07. OHIO INSTRUCTIONAL GRANTS

4790

Notwithstanding section 3333.12 of the Revised Code, in lieu	4791
of the tables in that section, instructional grants for all	4792
full-time students shall be made for fiscal year 2002 using the	4793
tables under this heading.	4794

The tables under this heading prescribe the maximum grant	4795
amounts covering two semesters, three quarters, or a comparable	4796
portion of one academic year. The grant amount for a full-time	4797
student enrolled in an eligible institution for a semester or	4798
quarter in addition to the portion of the academic year covered by	4799
a grant determined under these tables shall be a percentage of the	4800
maximum prescribed in the applicable table. The maximum grant for	4801
a fourth quarter shall be one-third of the maximum amount	4802
prescribed under the table. The maximum grant for a third semester	4803
shall be one-half of the maximum amount prescribed under the	4804
table.	4805

For a full-time student who is a dependent and enrolled in a	4806
nonprofit educational institution that is not a state-assisted	4807
institution and that has a certificate of authorization issued	4808
pursuant to Chapter 1713. of the Revised Code, the amount of the	4809
instructional grant for two semesters, three quarters, or a	4810
comparable portion of the academic year shall be determined in	4811
accordance with the following table:	4812

Private Institution

4813

Table of Grants

4814

	Maximum Grant $5,160		4815
Gross Income	Number of Dependents		4816

5 or more

4817

Under $14,000	$5,160	$5,160	$5,160	$5,160	$5,160	4818
$14,001 - $15,000	4,644	5,160	5,160	5,160	5,160	4819
$15,001 - $16,000	4,116	4,644	5,160	5,160	5,160	4820
$16,001 - $17,000	3,612	4,116	4,644	5,160	5,160	4821
$17,001 - $18,000	3,102	3,612	4,116	4,644	5,160	4822
$18,001 - $21,000	2,586	3,102	3,612	4,116	4,644	4823
$21,001 - $24,000	2,058	2,586	3,102	3,612	4,116	4824
$24,001 - $27,000	1,536	2,058	2,586	3,102	3,612	4825
$27,001 - $30,000	1,272	1,536	2,058	2,586	3,102	4826
$30,001 - $31,000	1,020	1,272	1,536	2,058	2,586	4827
$31,001 - $32,000	930	1,020	1,272	1,536	2,058	4828
$32,001 - $33,000	840	930	1,020	1,272	1,536	4829
$33,001 - $34,000	420	840	930	1,020	1,272	4830
$34,001 - $35,000	--	420	840	930	1,020	4831
$35,001 - $36,000	--	--	420	840	930	4832
$36,001 - $37,000	--	--	--	420	840	4833
$37,001 - $38,000	--	--	--	--	420	4834

For a full-time student who is financially independent and	4835
enrolled in a nonprofit educational institution that is not a	4836
state-assisted institution and that has a certificate of	4837
authorization issued pursuant to Chapter 1713. of the Revised	4838
Code, the amount of the instructional grant for two semesters,	4839
three quarters, or a comparable portion of the academic year shall	4840
be determined in accordance with the following table:	4841

Private Institution

4842

Table of Grants

4843

	Maximum Grant $5,160		4844
Gross Income	Number of Dependents		4845

5 or more

4846

Under $4,500	$5,160	$5,160	$5,160	$5,160	$5,160	$5,160	4847
$4,501 - $5,000	4,644	5,160	5,160	5,160	5,160	5,160	4848
$5,001 - $5,500	4,116	4,644	5,160	5,160	5,160	5,160	4849
$5,501 - $6,000	3,612	4,116	4,644	5,160	5,160	5,160	4850
$6,001 - $6,500	3,102	3,612	4,116	4,644	5,160	5,160	4851
$6,501 - $7,000	2,586	3,102	3,612	4,116	4,644	5,160	4852
$7,001 - $8,000	2,058	2,586	3,102	3,612	4,116	4,644	4853
$8,001 - $9,000	1,536	2,058	2,586	3,102	3,612	4,116	4854
$9,001 - $10,000	1,272	1,536	2,058	2,586	3,102	3,612	4855
$10,001 - $11,500	1,020	1,272	1,536	2,058	2,586	3,102	4856
$11,501 - $13,000	930	1,020	1,272	1,536	2,058	2,586	4857
$13,001 - $14,500	840	930	1,020	1,272	1,536	2,058	4858
$14,501 - $16,000	420	840	930	1,020	1,272	1,536	4859
$16,001 - $19,000	--	420	840	930	1,020	1,272	4860
$19,001 - $22,000	--	--	420	840	930	1,020	4861
$22,001 - $25,000	--	--	--	420	840	930	4862
$25,001 - $30,000	--	--	--	--	420	840	4863
$30,001 - $35,000	--	--	--	--	--	420	4864

For a full-time student who is a dependent and enrolled in an	4865
educational institution that holds a certificate of registration	4866
from the state board of proprietary school registration, the	4867
amount of the instructional grant for two semesters, three	4868
quarters, or a comparable portion of the academic year shall be	4869
determined in accordance with the following table:	4870

Proprietary Institution

4871

Table of Grants

4872

	Maximum Grant $4,374		4873
Gross Income	Number of Dependents		4874

5 or more

4875

Under $14,000	$4,374	$4,374	$4,374	$4,374	$4,374	4876
$14,001 - $15,000	3,948	4,374	4,374	4,374	4,374	4877
$15,001 - $16,000	3,480	3,948	4,374	4,374	4,374	4878
$16,001 - $17,000	3,042	3,480	3,948	4,374	4,374	4879
$17,001 - $18,000	2,634	3,042	3,480	3,948	4,374	4880
$18,001 - $21,000	2,166	2,634	3,042	3,480	3,948	4881
$21,001 - $24,000	1,752	2,166	2,634	3,042	3,480	4882
$24,001 - $27,000	1,338	1,752	2,166	2,634	3,042	4883
$27,001 - $30,000	1,074	1,338	1,752	2,166	2,634	4884
$30,001 - $31,000	858	1,074	1,338	1,752	2,166	4885
$31,001 - $32,000	804	858	1,074	1,338	1,752	4886
$32,001 - $33,000	708	804	858	1,074	1,338	4887
$33,001 - $34,000	354	708	804	858	1,074	4888
$34,001 - $35,000	--	354	708	804	858	4889
$35,001 - $36,000	--	--	354	708	804	4890
$36,001 - $37,000	--	--	--	354	708	4891
$37,001 - $38,000	--	--	--	--	354	4892

For a full-time student who is financially independent and	4893
enrolled in an educational institution that holds a certificate of	4894
registration from the state board of proprietary school	4895
registration, the amount of the instructional grant for two	4896
semesters, three quarters, or a comparable portion of the academic	4897
year shall be determined in accordance with the following table:	4898

Proprietary Institution

4899

Table of Grants

4900

	Maximum Grant $4,374		4901
Gross Income	Number of Dependents		4902

5 or more

4903

Under $4,500	$4,374	$4,374	$4,374	$4,374	$4,374	$4,374	4904
$4,501 - $5,000	3,948	4,374	4,374	4,374	4,374	4,374	4905
$5,001 - $5,500	3,480	3,948	4,374	4,374	4,374	4,374	4906
$5,501 - $6,000	3,042	3,480	3,948	4,374	4,374	4,374	4907
$6,001 - $6,500	2,634	3,042	3,480	3,948	4,374	4,374	4908
$6,501 - $7,000	2,166	2,634	3,042	3,480	3,948	4,374	4909
$7,001 - $8,000	1,752	2,166	2,634	3,042	3,480	3,948	4910
$8,001 - $9,000	1,338	1,752	2,166	2,634	3,042	3,480	4911
$9,001 - $10,000	1,074	1,338	1,752	2,166	2,634	3,042	4912
$10,001 - $11,500	858	1,074	1,338	1,752	2,166	2,634	4913
$11,501 - $13,000	804	858	1,074	1,338	1,752	2,166	4914
$13,001 - $14,500	708	804	858	1,074	1,338	1,752	4915
$14,501 - $16,000	354	708	804	858	1,074	1,338	4916
$16,001 - $19,000	--	354	708	804	858	1,074	4917
$19,001 - $22,000	--	--	354	708	804	858	4918
$22,001 - $25,000	--	--	--	354	708	804	4919
$25,001 - $30,000	--	--	--	--	354	708	4920
$30,001 - $35,000	--	--	--	--	--	354	4921

For a full-time student who is a dependent and enrolled in a	4922
state-assisted educational institution, the amount of the	4923
instructional grant for two semesters, three quarters, or a	4924
comparable portion of the academic year shall be determined in	4925
accordance with the following table:	4926

Public Institution

4927

Table of Grants

4928

	Maximum Grant $2,070		4929
Gross Income	Number of Dependents		4930

5 or more

4931

Under $14,000	$2,070	$2,070	$2,070	$2,070	$2,070	4932
$14,001 - $15,000	1,866	2,070	2,070	2,070	2,070	4933
$15,001 - $16,000	1,644	1,866	2,070	2,070	2,070	4934
$16,001 - $17,000	1,458	1,644	1,866	2,070	2,070	4935
$17,001 - $18,000	1,248	1,458	1,644	1,866	2,070	4936
$18,001 - $21,000	1,020	1,248	1,458	1,644	1,866	4937
$21,001 - $24,000	816	1,020	1,248	1,458	1,644	4938
$24,001 - $27,000	612	816	1,020	1,248	1,458	4939
$27,001 - $30,000	492	612	816	1,020	1,248	4940
$30,001 - $31,000	396	492	612	816	1,020	4941
$31,001 - $32,000	366	396	492	612	816	4942
$32,001 - $33,000	336	366	396	492	612	4943
$33,001 - $34,000	168	336	366	396	492	4944
$34,001 - $35,000	--	168	336	366	396	4945
$35,001 - $36,000	--	--	168	336	366	4946
$36,001 - $37,000	--	--	--	168	336	4947
$37,001 - $38,000	--	--	--	--	168	4948

For a full-time student who is financially independent and	4949
enrolled in a state-assisted educational institution, the amount	4950
of the instructional grant for two semesters, three quarters, or a	4951
comparable portion of the academic year shall be determined in	4952
accordance with the following table:	4953

Public Institution

4954

Table of Grants

4955

	Maximum Grant $2,070		4956
Gross Income	Number of Dependents		4957

5 or more

4958

Under $4,500	$2,070	$2,070	$2,070	$2,070	$2,070	$2,070	4959
$4,501 - $5,000	1,866	2,070	2,070	2,070	2,070	2,070	4960
$5,001 - $5,500	1,644	1,866	2,070	2,070	2,070	2,070	4961
$5,501 - $6,000	1,458	1,644	1,866	2,070	2,070	2,070	4962
$6,001 - $6,500	1,248	1,458	1,644	1,866	2,070	2,070	4963
$6,501 - $7,000	1,020	1,248	1,458	1,644	1,866	2,070	4964
$7,001 - $8,000	816	1,020	1,248	1,458	1,644	1,866	4965
$8,001 - $9,000	612	816	1,020	1,248	1,458	1,644	4966
$9,001 - $10,000	492	612	816	1,020	1,248	1,458	4967
$10,001 - $11,500	396	492	612	816	1,020	1,248	4968
$11,501 - $13,000	366	396	492	612	816	1,020	4969
$13,001 - $14,500	336	366	396	492	612	816	4970
$14,501 - $16,000	168	336	366	396	492	612	4971
$16,001 - $19,000	--	168	336	366	396	492	4972
$19,001 - $22,000	--	--	168	336	366	396	4973
$22,001 - $25,000	--	--	--	168	336	366	4974
$25,001 - $30,000	--	--	--	--	168	336	4975
$30,001 - $35,000	--	--	--	--	--	168	4976

The foregoing appropriation item 235-503, Ohio Instructional	4977
Grants, shall be used to make the payments authorized by division	4978
(C) of section 3333.26 of the Revised Code to the institutions	4979
described in that division. In addition, this appropriation shall	4980
be used to reimburse the institutions described in division (B) of	4981
section 3333.26 of the Revised Code for the cost of the waivers	4982
required by that division.	4983

Of the appropriation item 235-503, Ohio Instructional Grants,	4984
up to $3,800,000 of surplus funds net of encumbrances from the	4985
appropriation for fiscal year 2002 shall be reappropriated to	4986
appropriation item 235-534, Student Workforce Development Grants,	4987
for fiscal year 2003.	4988

WAR ORPHANS SCHOLARSHIPS

4989

The foregoing appropriation item 235-504, War Orphans	4990
Scholarships, shall be used to reimburse state-assisted	4991
institutions of higher education for waivers of instructional fees	4992
and general fees provided by them, to provide grants to	4993
institutions that have received a certificate of authorization	4994
from the Ohio Board of Regents under Chapter 1713. of the Revised	4995
Code, in accordance with the provisions of section 5910.04 of the	4996
Revised Code, and to fund additional scholarship benefits provided	4997
by section 5910.032 of the Revised Code.	4998

PART-TIME STUDENT INSTRUCTIONAL GRANTS

4999

The foregoing appropriation item 235-549, Part-time Student	5000
Instructional Grants, shall be used to support a grant program for	5001
part-time undergraduate students who are Ohio residents and who	5002
are enrolled in degree granting programs.	5003

Eligibility for participation in the program shall include	5004
degree granting educational institutions that hold a certificate	5005
of registration from the State Board of Proprietary School	5006
Registration, and nonprofit institutions that have a certificate	5007
of authorization issued pursuant to Chapter 1713. of the Revised	5008
Code, as well as state-assisted colleges and universities. Grants	5009
shall be given to students on the basis of need, as determined by	5010
the college, which, in making these determinations, shall give	5011
special consideration to single-parent heads-of-household and	5012
displaced homemakers who enroll in an educational degree program	5013
that prepares the individual for a career. In determining need,	5014
the college also shall consider the availability of educational	5015
assistance from a student's employer. It is the intent of the	5016
General Assembly that these grants not supplant such assistance.	5017

Sec. 125. UNCLAIMED FUNDS ~~TRANSER~~TRANSFER

5018

Notwithstanding division (A) of section 169.05 of the Revised	5019
Code, prior to June 30, 2003, upon the request of the Director of	5020
Budget and Management, the Director of Commerce shall transfer to	5021
the General Revenue Fund up to ~~$30,000,000~~$80,800,000 of the	5022
unclaimed funds that have been reported by the holder of unclaimed	5023
funds as provided by section 169.05 of the Revised Code,	5024
irrespective of the allocation of the unclaimed funds under that	5025
section."	5026

Section 11. That existing Sections 16, 16.02, 44, 44.19,	5027
63.07, 63.35, 75.02, 94, 94.02, 94.06, 94.07, and 125 of Am. Sub.	5028
H.B. 94 of the 124th General Assembly are hereby repealed.	5029

Section 12. That Section 13 of Am. Sub. H.B. 94 of the 124th	5030
General Assembly, as amended by Am. Sub. H.B. 524 of the 124th	5031
General Assembly, be amended to read as follows:	5032

" Sec. 13. DAS DEPARTMENT OF ADMINISTRATIVE SERVICES

5033

General Revenue Fund

5034

GRF	100-402	Unemployment Compensation	$	107,713		$	109,114	5035
GRF	100-405	Agency Audit Expenses	$	662,147		$	614,704	5036
GRF	100-406	County & University Human Resources Services	$	850,133		$	838,777	5037
GRF	100-409	Departmental Information Services	$	948,332		$	975,481	5038
GRF	100-414	Ohio Geographically Referenced Information Program	$	512,410		$	510,807	5039
GRF	100-416	Strategic Technology Development Programs	$	3,470,440		$	5,000,000	5040
GRF	100-417	MARCS	$	5,350,344		$	~~6,176,160~~	5041
							4,676,915	5042
GRF	100-418	E-Government Development	$	2,000,000		$	4,000,000	5043
GRF	100-419	Ohio SONET	$	4,527,924		$	1,785,270	5044
GRF	100-420	Innovation Ohio	$	144,000		$	144,000	5045
GRF	100-421	ERP Project Implementation	$	600,000		$	624,000	5046
GRF	100-433	State of Ohio Computer Center	$	5,003,580		$	5,027,234	5047
GRF	100-439	Equal Opportunity Certification Programs	$	817,894		$	861,093	5048
GRF	100-447	OBA - Building Rent Payments	$	96,106,300		$	110,268,500	5049
GRF	100-448	OBA - Building Operating Payments	$	26,098,000		$	26,098,000	5050
GRF	100-449	DAS - Building Operating Payments	$	5,126,955		$	5,126,968	5051
GRF	100-451	Minority Affairs	$	119,706		$	118,043	5052
GRF	100-734	Major Maintenance	$	70,224		$	68,376	5053
GRF	102-321	Construction Compliance	$	1,392,590		$	1,396,506	5054
GRF	130-321	State Agency Support Services	$	3,632,427		$	3,740,888	5055
TOTAL GRF General Revenue Fund			$	157,541,119		$	~~173,483,921~~	5056
			171,984,676		5057

General Services Fund Group

5058

112	100-616	DAS Administration	$	5,243,105	$	5,503,547	5059
115	100-632	Central Service Agency	$	1,259,438	$	376,844	5060
117	100-644	General Services Division - Operating	$	5,790,000	$	7,091,000	5061
122	100-637	Fleet Management	$	1,600,913	$	1,652,189	5062
125	100-622	Human Resources Division - Operating	$	23,895,125	$	24,640,311	5063
127	100-627	Vehicle Liability Insurance	$	3,373,835	$	3,487,366	5064
128	100-620	Collective Bargaining	$	3,292,859	$	3,410,952	5065
130	100-606	Risk Management Reserve	$	185,900	$	197,904	5066
131	100-639	State Architect's Office	$	7,504,787	$	7,772,789	5067
132	100-631	DAS Building Management	$	10,887,913	$	11,362,872	5068
188	100-649	Equal Opportunity Programs	$	1,214,691	$	1,253,311	5069
201	100-653	General Services Resale Merchandise	$	1,779,000	$	1,833,000	5070
210	100-612	State Printing	$	6,648,503	$	6,928,823	5071
4H2	100-604	Governor's Residence Gift	$	22,628	$	23,194	5072
4P3	100-603	Departmental MIS Services	$	7,447,713	$	7,761,365	5073
427	100-602	Investment Recovery	$	4,204,735	$	4,179,184	5074
5C2	100-605	MARCS Development	$	3,429,947	$	4,475,190	5075
5C3	100-608	Skilled Trades	$	2,237,200	$	2,332,464	5076
5D7	100-621	Workforce Development	$	12,000,000	$	12,000,000	5077
5L7	100-610	Professional Development	$	2,700,000	$	2,700,000	5078
TOTAL GSF General Services Fund							5079
Group			$	104,718,292	$	108,982,305	5080

Intragovernmental Service Fund Group

5081

133	100-607	Information Technology Fund	$	104,482,097	$	111,387,436	5082
4N6	100-617	Major Computer Purchases	$	12,000,000	$	4,500,000	5083
TOTAL ISF Intragovernmental							5084
Service Fund Group			$	116,482,097	$	115,887,436	5085

Agency Fund Group

5086

113	100-628	Unemployment Compensation	$	3,500,000	$	3,577,000	5087
124	100-629	Payroll Deductions	$	1,877,100,000	$	1,999,100,000	5088
TOTAL AGY Agency Fund Group			$	1,880,600,000	$	2,002,677,000	5089

Holding Account Redistribution Fund Group

5090

R08	100-646	General Services Refunds	$	20,000		$	20,000	5091
TOTAL 090 Holding Account								5092
Redistribution Fund Group			$	20,000		$	20,000	5093
TOTAL ALL BUDGET FUND GROUPS			$	2,259,361,508		$	~~2,401,050,662~~	5094
			2,399,551,417"		5095

Section 13. That existing Section 13 of Am. Sub. H.B. 94 of	5097
the 124th General Assembly, as amended by Am. Sub. H.B. 524 of the	5098
124th General Assembly, is hereby repealed.	5099

Section 14. That Sections 63 and 63.37 of Am. Sub. H.B. 94 of	5100
the 124th General Assembly, as amended by Am. Sub. H.B. 299 of	5101
the 124th General Assembly, be amended to read as follows:	5102

" Sec. 63. JFS DEPARTMENT OF JOB AND FAMILY SERVICES

5103

General Revenue Fund

5104

GRF	600-100	Personal Services					5105
		State	$	56,614,143	$	58,715,838	5106
		Federal	$	18,645,558	$	19,317,882	5107
		Personal Services Total	$	75,259,701	$	78,033,720	5108
GRF	600-200	Maintenance					5109
		State	$	30,439,164	$	24,320,541	5110
		Federal	$	7,295,237	$	5,828,810	5111
		Maintenance Total	$	37,734,401	$	30,149,351	5112
GRF	600-300	Equipment					5113
		State	$	5,469,830	$	979,504	5114
		Federal	$	179,026	$	32,059	5115
		Equipment Total	$	5,648,856	$	1,011,563	5116
GRF	600-402	Electronic Benefits Transfer (EBT)					5117
		State	$	7,551,305	$	7,715,079	5118
		Federal	$	7,551,305	$	7,715,079	5119
		EBT Total	$	15,102,610	$	15,430,158	5120
GRF	600-410	TANF State	$	268,636,561	$	268,619,061	5121
GRF	600-413	Day Care Match/Maintenance of Effort	$	84,120,606	$	84,120,606	5122
GRF	600-416	Computer Projects					5123
		State	$	137,583,171	$	142,908,736	5124
		Federal	$	32,665,206	$	34,770,353	5125
		Computer Projects Total	$	170,248,377	$	177,679,089	5126
GRF	600-420	Child Support Administration	$	7,919,511	$	7,885,309	5127
GRF	600-426	Children's Health Insurance Plan (CHIP)					5128
		State	$	13,571,338	$	15,770,373	5129
		Federal	$	33,535,007	$	38,968,860	5130
		CHIP Total	$	47,106,345	$	54,739,233	5131
GRF	600-427	Child and Family Services Activities	$	7,189,086	$	7,000,427	5132
GRF	600-435	Unemployment Compensation Review Commission	$	3,759,151	$	3,785,380	5133
GRF	600-436	Medicaid Systems Enhancements	$	4,445,384	$	1,853,611	5134
GRF	600-502	Child Support Match	$	17,383,992	$	16,814,103	5135
GRF	600-504	Non-TANF County Administration	$	70,554,373	$	68,697,679	5136
GRF	600-511	Disability Assistance/Other Assistance	$	84,662,017	$	98,152,408	5137
GRF	600-512	Non-TANF Emergency Assistance	$	1,079,000	$	1,079,000	5138
GRF	600-525	Health Care/Medicaid					5139
		State	$	2,908,181,745	$	3,112,834,875	5140
		Federal	$	4,174,579,446	$	4,460,972,607	5141
		Health Care Total	$	7,082,761,191	$	7,573,807,482	5142
GRF	600-527	Child Protective Services	$	59,592,059	$	64,047,479	5143
GRF	600-528	Adoption Services					5144
		State	$	33,085,023	$	37,697,562	5145
		Federal	$	32,158,564	$	36,641,941	5146
		Adoption Services Total	$	65,243,587	$	74,339,503	5147
GRF	600-534	Adult Protective Services	$	2,850,975	$	2,775,950	5148
GRF	600-552	County Social Services	$	11,354,550	$	11,055,746	5149
TOTAL GRF General Revenue Fund							5150
		State	$	3,816,042,984	$	4,036,829,267	5151
		Federal	$	4,306,609,349	$	4,604,247,591	5152
		GRF Total	$	8,122,652,333	$	8,641,076,858	5153

General Services Fund Group

5154

4A8	600-658	Child Support Collections	$	42,389,027	$	42,389,027	5155
4R4	600-665	BCII Service Fees	$	124,522	$	136,974	5156
5C9	600-671	Medicaid Program Support	$	50,846,239	$	59,226,893	5157
5R1	600-677	County Computers	$	5,000,000	$	5,000,000	5158
613	600-645	Training Activities	$	1,462,626	$	1,157,525	5159
TOTAL GSF General Services							5160
Fund Group			$	99,822,414	$	107,910,419	5161

Federal Special Revenue Fund Group

5162

3A2	600-641	Emergency Food Distribution	$	2,018,844		$	2,018,844	5163
3D3	600-648	Children's Trust Fund Federal	$	2,040,524		$	2,040,524	5164
3F0	600-623	Health Care Federal	$	260,504,926		$	~~281,562,040~~	5165
							321,924,490	5166
3F0	600-650	Hospital Care Assurance Match	$	320,551,643		$	332,807,785	5167
3G5	600-655	Interagency Reimbursement	$	852,461,818		$	860,986,436	5168
3G9	600-657	Special Activities Self Sufficiency	$	522,500		$	190,000	5169
3H7	600-617	Day Care Federal	$	299,156,430		$	337,848,130	5170
3N0	600-628	IV-E Foster Care Maintenance	$	152,981,760		$	173,963,142	5171
3S5	600-622	Child Support Projects	$	534,050		$	534,050	5172
3V0	600-688	Workforce Investment Act	$	128,476,093		$	128,476,093	5173
3V4	600-678	Federal Unemployment Programs	$	74,025,525		$	~~74,025,525~~	5174
							125,025,525	5175
3V4	600-679	Unemployment Compensation Review Commission - Federal	$	2,286,421		$	2,286,421	5176
3V6	600-689	TANF Block Grant	$	654,410,661		$	677,098,311	5177
3V6	600-690	Wellness	$	14,337,515		$	14,337,515	5178
316	600-602	State and Local Training	$	10,166,587		$	10,325,460	5179
327	600-606	Child Welfare	$	34,594,191		$	34,592,977	5180
331	600-686	Federal Operating	$	41,600,896		$	41,640,897	5181
365	600-681	JOB Training Program	$	25,000,000		$	5,469,259	5182
384	600-610	Food Stamps and State Administration	$	160,371,358		$	161,716,857	5183
385	600-614	Refugee Services	$	4,388,503		$	4,559,632	5184
395	600-616	Special Activities/Child and Family Services	$	9,491,000		$	9,491,000	5185
396	600-620	Social Services Block Grant	$	51,195,100		$	51,297,478	5186
397	600-626	Child Support	$	248,001,590		$	247,353,041	5187
398	600-627	Adoption Maintenance/ Administration	$	277,806,175		$	341,298,661	5188
TOTAL FED Federal Special Revenue								5189
Fund Group			$	3,626,924,110		$	~~3,795,920,078~~	5190
			3,887,282,528		5191

State Special Revenue Fund Group

5192

198	600-647	Children's Trust Fund	$	4,368,785		$	4,379,333	5193
3W3	600-695	Adult Protective Services	$	120,227		$		5194
3W3	600-696	Non-TANF Adult Assistance	$	1,000,000		$		5195
3W8	600-638	Hippy Program	$	62,500		$		5196
3W9	600-640	Adoption Connection	$	50,000		$		5197
4A9	600-607	Unemployment Compensation Admin Fund	$	9,420,000		$	9,420,000	5198
4E3	600-605	Nursing Home Assessments	$	95,511		$	95,511	5199
4E7	600-604	Child and Family Services Collections	$	145,805		$	149,450	5200
4F1	600-609	Foundation Grants/Child and Family Services	$	116,400		$	119,310	5201
4J5	600-613	Nursing Facility Bed Assessments	$	31,179,798		$	31,279,798	5202
4J5	600-618	Residential State Supplement Payments	$	15,700,000		$	15,700,000	5203
4K1	600-621	ICF/MR Bed Assessments	$	21,604,331		$	22,036,418	5204
4R3	600-687	Banking Fees	$	592,937		$	592,937	5205
4V2	600-612	Child Support Activities	$	124,993		$	124,993	5206
4Z1	600-625	HealthCare Compliance	$	10,000,000		$	10,000,000	5207
5A5	600-685	Unemployment Benefit Automation	$	19,607,027		$	13,555,667	5208
5E6	600-634	State Option Food Stamps	$	6,000,000		$	6,000,000	5209
5P4	600-691	TANF Child Welfare	$	7,500,000		$	7,500,000	5210
5P5	600-692	Health Care Services	$	223,847,498		$	255,386,713	5211
5R2	600-608	Medicaid-Nursing Facilities	$	59,462,415		$	~~79,283,220~~	5212
							105,136,444	5213
5U3	600-654	Health Care Services Administration	$	0		$	3,419,405	5214
651	600-649	Hospital Care Assurance Program Fund	$	222,480,109		$	233,384,431	5215
TOTAL SSR State Special Revenue								5216
Fund Group			$	633,478,336		$	~~690,240,508~~	5217
			719,513,137		5218

Agency Fund Group

5219

192	600-646	Support Intercept - Federal	$	80,000,000	$	82,000,000	5220
5B6	600-601	Food Stamp Intercept	$	5,283,920	$	5,283,920	5221
583	600-642	Support Intercept - State	$	20,162,335	$	20,565,582	5222
TOTAL AGY Agency Fund Group			$	105,446,255	$	107,849,502	5223

Holding Account Redistribution Fund Group

5224

R12	600-643	Refunds and Audit Settlements	$	200,000		$	200,000	5225
R13	600-644	Forgery Collections		700,000			700,000	5226
TOTAL 090 Holding Account Redistribution Fund Group			$	900,000		$	900,000	5227
TOTAL ALL BUDGET FUND GROUPS			$	12,589,223,448		$	~~13,343,897,365~~	5228
			13,464,532,444		5229

Sec. 63.37. NURSING FACILITY STABILIZATION FUND

5231

(A) As used in this section:

5232

(1) "Inpatient days" and "nursing facility" have the same	5233
meanings as in section 5111.20 of the Revised Code.	5234

(2) "Medicaid day" means all days during which a resident	5235
who is a Medicaid recipient occupies a bed in a nursing facility	5236
that is included in the facility's certified capacity under Title	5237
XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C.A.	5238
1396, as amended. Therapeutic or hospital leave days for which	5239
payment is made under section 5111.33 of the Revised Code are	5240
considered Medicaid days proportionate to the percentage of the	5241
nursing facility's per resident per day rate paid for those days.	5242

(B) The Department of Job and Family Services shall use	5243
money in the Nursing Facility Stabilization Fund created under	5244
section 3721.56 of the Revised Code to do all of the following:	5245

(1) Make payments to nursing facilities under sections	5246
5111.20 to 5111.32 of the Revised Code;	5247

(2) Beginning with payments made to nursing facilities in	5248
August 2001, make payments to each nursing facility for each	5249
Medicaid day in fiscal ~~years~~year 2002 ~~and 2003~~ in an amount equal	5250
to sixty-nine and seven-tenths per cent of the franchise permit	5251
fee the nursing facility pays under section 3721.53 of the Revised	5252
Code for the fiscal year the department makes the payment divided	5253
by the nursing facility's inpatient days for the calendar year	5254
preceding the calendar year in which that fiscal year begins;	5255

(3) Beginning with payments made to nursing facilities in	5256
August 2002, make payments to each nursing facility for each	5257
Medicaid day in fiscal years 2003, 2004, and 2005 in an amount	5258
equal to seventy-six and seventy-four-hundredths per cent of the	5259
franchise permit fee the nursing facility pays under section	5260
3721.53 of the Revised Code for the fiscal year the department	5261
makes the payment divided by the nursing facility's inpatient days	5262
for the calendar year preceding the calendar year in which that	5263
fiscal year begins;	5264

(4) Beginning with payments made to nursing facilities in	5265
August 2001, make payments to each nursing facility for fiscal	5266
~~years~~year 2002 ~~and 2003~~ in an amount equal to one dollar and	5267
fifty cents per Medicaid day for the purpose of enhancing quality	5268
of care;	5269

(5) Beginning with payments made to nursing facilities in	5270
August 2002, make payments to each nursing facility for fiscal	5271
years 2003, 2004, and 2005 in an amount equal to two dollars and	5272
twenty-five cents per Medicaid day for the purpose of enhancing	5273
quality of care.	5274

(C) Any money remaining in the Nursing Facility	5275
Stabilization Fund after payments specified in division (B) of	5276
this section are made for fiscal years 2002 ~~and~~, 2003, 2004, and	5277
2005 shall be retained in the fund. Any interest or other	5278
investment proceeds earned on money in the fund shall be credited	5279
to the fund and used to make payments in accordance with division	5280
(B) of this section.	5281

(D) Notwithstanding division (N) of section 5111.20 of the	5282
Revised Code, the Department of Job and Family Services, in making	5283
Medicaid payments to a nursing facility under sections 5111.20 to	5284
5111.32 of the Revised Code, shall ~~exclude~~do both of the	5285
following:	5286

(1) Exclude from a nursing facility's other protected costs	5287
the cost of sixty-nine and seven-tenths per cent of the franchise	5288
permit fee that the nursing facility pays under section 3721.53 of	5289
the Revised Code for fiscal ~~years~~year 2002 ~~and 2003~~ if the	5290
nursing facility receives payments under division (B)(2) of this	5291
section for sixty-nine and seven-tenths per cent of those	5292
franchise permit fees;	5293

(2) Exclude from a nursing facility's other protected costs	5294
the cost of seventy-six and seventy-four-hundredths per cent of	5295
the franchise permit fee that the nursing facility pays under	5296
section 3721.53 of the Revised Code for fiscal years 2003, 2004,	5297
and 2005 if the nursing facility receives payments under division	5298
(B)(2) of this section for seventy-six and seventy-four-hundredths	5299
per cent of those franchise permit fees.	5300

(E) The limitation of Section 230 of Am. Sub. H.B. 94 of the	5301
124th General Assembly is not applicable to the amendments made by	5302
this act to this section.""	5303

Section 15. That existing Sections 63 and 63.37 of Am. Sub.	5304
H.B. 94 of the 124th General Assembly, as amended by Am. Sub.	5305
H.B. 299 of the 124th General Assembly, are hereby repealed.	5306

Section 16. That Section 29 of Am. Sub. H.B. 405 of the 124th	5307
General Assembly be amended to read as follows:	5308

" Sec. 29. BUDGET STABILIZATION FUND TRANSFERS

5309

(A) Notwithstanding section 131.43 and division (D) of	5310
section 127.14 of the Revised Code, the Director of Budget and	5311
Management may, with Controlling Board approval, transfer up to	5312
$248 million from the Budget Stabilization Fund to the General	5313
Revenue Fund during the 2002-2003 biennium to help ensure that the	5314
available revenue receipts and balances in the General Revenue	5315
Fund are not less than the appropriations for each fiscal year.	5316

(B) Notwithstanding section 131.43 and division (D) of	5317
section 127.14 of the Revised Code, the Director of Budget and	5318
Management shall transfer, not later than 30 days after the	5319
effective date of this section, $8.0 million from the Budget	5320
Stabilization Fund to the General Revenue Fund. ~~These funds~~Of the	5321
amount transferred, $2.0 million shall be used for emergency	5322
purposes, to include, but not be limited to, the Department of	5323
Health and Department of Agriculture for anthrax and bioterrorism	5324
testing, the Adjutant General for costs associated with the	5325
deployment of troops, armory maintenance, equipment costs and	5326
capital needs, the Department of Public Safety, security, and	5327
other emergency purpose expenses. These amounts are hereby	5328
appropriated for General Revenue Fund appropriation line items	5329
established by the Director of Budget and Management.	5330

Prior to utilizing these funds, the appropriate agency must	5331
receive the approval of the Controlling Board. Any of these funds	5332
unspent in fiscal year 2002 shall be transferred to fiscal year	5333
2003 by the Director of Budget and Management for the same purpose	5334
as in fiscal year 2002.	5335

~~The~~Of the $2.0 million transferred for emergency purposes as	5336
specified in this division, the unobligated and unencumbered	5337
balance of these funds as of June 30, 2003, shall be transferred	5338
back to the Budget Stabilization Fund."	5339

Section 17. That existing Section 29 of Am. Sub. H.B. 405 of	5340
the 124th General Assembly is hereby repealed.	5341

Section 18. That Section 31 of Am. Sub. H.B. 405 of the 124th	5342
General Assembly is hereby repealed. This repeal is not subject to	5343
the referendum. Therefore, under Ohio Constitution, Article II,	5344
Section 1d, the repeal goes into immediate effect.	5345

Section 19. In addition to any amounts that have been	5346
authorized for transfer from the Budget Stabilization Fund to the	5347
General Revenue Fund in fiscal year 2002, there is hereby	5348
appropriated in fiscal year 2002 an amount deemed necessary by the	5349
Director of Budget and Management, from the Budget Stabilization	5350
Fund (Fund 013), to appropriation item 001-601, GRF Shortfall	5351
Contingency, for the purpose of overcoming the current shortfall	5352
of revenues to the General Revenue Fund. The Director shall make	5353
disbursements, using an intrastate transfer voucher, from the	5354
foregoing appropriation to the General Revenue Fund, of such	5355
amounts as are necessary to ensure that the unobligated and	5356
unencumbered balance in the General Revenue Fund at the end of	5357
fiscal year 2002 is not more than $100,000,000.	5358

In addition to any amounts that have been authorized for	5359
transfer from the Budget Stabilization Fund to the General Revenue	5360
Fund in fiscal year 2003, there is hereby appropriated in fiscal	5361
year 2003 an amount deemed necessary by the Director of Budget and	5362
Management, from the Budget Stabilization Fund (Fund 013) to	5363
appropriation item 001-601, GRF Shortfall Contingency. The	5364
Director shall make disbursements, using an intrastate transfer	5365
voucher, from the foregoing appropriation to the General Revenue	5366
Fund, of such amounts as are necessary to ensure that the	5367
unobligated and unencumbered balance in the General Revenue Fund	5368
at the end of fiscal year 2003 is not more than $100,000,000.	5369

Section 20. ADDITIONAL TRANSFERS TO THE GENERAL REVENUE	5370
FUND	5371

Notwithstanding any other provision of law to the contrary,	5372
including Am. Sub. H.B. 94 and Am. Sub. H.B. 405 both of the 124th	5373
General Assembly, as subsequently amended, during fiscal years	5374
2002 and 2003, the Director of Budget and Management is hereby	5375
authorized to make such transfers of cash to the General Revenue	5376
Fund from funds created in uncodified law or in Title 1, 3, 5, 7,	5377
9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31, 33, 35, 37, 39, 41,	5378
43, 45, 47, 49, 51, 53, or 55, Chapter 5701., 5703., 5705., 5707.,	5379
5709., 5711., 5713., 5715., 5717., 5719., 5721., 5723., 5725.,	5380
5727., 5729., 5731., 5733., 5735., 5737., 5739., 5741., 5743.,	5381
5745., 5749., 5751., or 5753., or Title 59, 61, or 63 of the	5382
Revised Code that do not consist of federal funds or of funds from	5383
which transfers for general purposes are constitutionally	5384
restricted, as are necessary to ensure that expenditures from the	5385
General Revenue Fund do not exceed amounts credited to it. The	5386
Director shall issue any directives to state agencies that are	5387
necessary to accomplish the purposes of this section.	5388

Section 21. On or before January 1, 2003, the Director of	5389
Budget and Management shall reduce fiscal year 2003 General	5390
Revenue Fund appropriations for the Department of Education by	5391
$30,000,000. The following GRF appropriation items are exempt from	5392
the reduction: 200-406, Head Start; 200-500, School Finance	5393
Equity; 200-501, Base Cost Funding; 200-502, Pupil Transportation;	5394
200-511, Auxillary Services; 200-520, Disadvantaged Pupil Impact	5395
Aid; 200-521, Gifted Pupil Program; 200-525, Parity Aid; 200-532,	5396
Nonpublic Administration Cost Reimbursement; 200-534,	5397
Desegregation Costs; 200-540, Special Education Enhancements;	5398
200-545, Career-Technical Education Enhancements; 200-546,	5399
Charge-Off Supplement; 200-553, County MR/DD Boards Transportation	5400
Operating; 200-901, Property Tax Allocation – Education; and	5401
200-906, Tangible Tax Exemption – Education.	5402

Section 22. Not later than July 10, 2002, the Director of	5403
Budget and Management shall reduce fiscal year 2003 General	5404
Revenue Fund appropriations made to the Department of	5405
Rehabilitation and Correction appropriation item 501-321,	5406
Institutional Operations, by $10,000,000. This appropriations	5407
reduction is in addition to any other General Revenue Fund	5408
appropriations reductions made to the Department of Rehabilitation	5409
and Correction appropriations in fiscal year 2003, including but	5410
not limited to any General Revenue Fund appropriations reductions	5411
imposed by executive order.	5412

Section 23. There is hereby appropriated out of funds made	5413
available to the state under Section 903(d) of the Social Security	5414
Act, as amended, the sum of $51,000,000 to be used under the	5415
direction of the Department of Job and Family Services to pay for	5416
administrative activities for the Unemployment Insurance Program,	5417
employment services, and other allowable expenditures under	5418
Section 903(d) of the Social Security Act, as amended.	5419

The amounts obligated pursuant to this section shall not	5420
exceed at any time the amount by which the aggregate of the	5421
amounts transferred to the account of the state pursuant to	5422
Section 903(d) of the Social Security Act, as amended, exceeds the	5423
aggregate of the amounts obligated for administration and paid out	5424
for benefits and required by law to be charged against the amounts	5425
transferred to the account of the state.	5426

Of the appropriation item 600-678, Federal Unemployment	5427
Programs, in Section 63 of Am. Sub. H.B. 94 of the 124th General	5428
Assembly, as amended, up to $18,000,000 in fiscal year 2003 shall	5429
be used by the Department of Job and Family Services to reimburse	5430
the General Revenue Fund, through state intrastate transfer	5431
vouchers, for expenses incurred on or after the date of enactment	5432
of this section from the General Revenue Fund for the	5433
aforementioned programs as reported to the federal government as	5434
allowable expenditures.	5435

Section 24. There is hereby created the Economic Development	5436
Study Committee consisting of five members appointed by the	5437
President of the Senate and four members appointed by the Speaker	5438
of the House of Representatives. Of the members appointed by the	5439
President, one shall represent retail merchants, one the Ohio	5440
Chamber of Commerce, one the Ohio Manufacturers Association, one	5441
the Business Roundtable, and one the Interuniversity Council. Of	5442
the members appointed by the Speaker, one shall represent the Ohio	5443
Farm Bureau Federation, one the labor unions of the state, one the	5444
Ohio Association of Community Colleges, and one the National	5445
Federation of Independent Businesses. At the first meeting of the	5446
committee, the members shall elect a chairperson and vice	5447
chairperson. Members shall serve without compensation. The	5448
committee shall study the needs of the economy of the state and	5449
shall submit a written report to the President, the Speaker, and	5450
the minority leaders of the House and Senate not later than	5451
January 31, 2003. The report shall address the challenges of the	5452
ongoing revenue shortfall of the state and recommend measures to	5453
increase investment in high technology in the state, encourage	5454
economic growth and the creation of jobs, improve primary,	5455
secondary, and higher education, and achieve other goals important	5456
to the vitality of the state's economy. Upon submitting its	5457
report, the committee shall cease to exist.	5458

Section 25. (A) The aggregate amount of appropriations from	5459
the General Revenue Fund for fiscal years 2004 and 2005 shall not	5460
exceed the aggregate amount of spending from the General Revenue	5461
Fund for fiscal years 2002 and 2003, other than appropriations and	5462
spending for the following purposes:	5463

(1) Higher education;

5464

(2) Primary and secondary education;

5465

(3) Medicaid;

5466

(4) Debt service;

5467

(5) Property tax relief.

5468

(B) There is hereby created the Budget Study Committee	5469
consisting of five members appointed from the House of	5470
Representatives and five members appointed from the Senate. The	5471
members of the House of Representatives shall be appointed by the	5472
Speaker of the House of Representatives and the members of the	5473
Senate shall be appointed by the President of the Senate. Of the	5474
five members from each house, two shall be of the minority party.	5475
All appointments shall be made by November 6, 2002. The Committee	5476
shall conduct its first meeting not later than November 15, 2002.	5477
At the first meeting, the Committee shall select a chairperson and	5478
vice chairperson.	5479

The Committee shall conduct a comprehensive study of the five	5480
areas of state spending set forth in divisions (A)(1) to (5) of	5481
this section for the purpose of making recommendations that, if	5482
implemented, will improve efficiency and maintain or exceed	5483
current levels of service in those areas. The Committee shall	5484
issue a report to the General Assembly with its recommendations	5485
not later than March 31, 2003.	5486

Section 26. Notwithstanding section 3702.68 of the Revised	5487
Code, the Director of Health may accept for review under section	5488
3702.52 of the Revised Code an application for a certificate of	5489
need approving the relocation of up to twenty-four existing	5490
nursing home beds in Jackson County to Gallia County.	5491

Section 27. The Director of Job and Family Services, on or	5492
before October 1, 2002, shall establish the Mahoning Valley	5493
Education and Training Institute at Youngstown State University.	5494
The purpose of the program shall be for retraining of existing	5495
workers and providing the education and training for new entrants	5496
into the regional labor market.	5497

Section 28. For any federal funds that are received under	5498
"The No Child Left Behind Act (PL107-110)" that the Department of	5499
Education has discretionary authority to spend, the Department	5500
shall submit a spending plan to the Controlling Board. The	5501
Department shall not expend any of these funds before obtaining	5502
approval of the spending plan by the Controlling Board.	5503

Section 29. (A) The Governor is hereby authorized to execute	5504
a deed in the name of the state conveying to Summit County and its	5505
successors and assigns all of the state's right, title, and	5506
interest in the following described real estate:	5507

Boston Mills Organizational Maintenance Shop and other	5508
related facilities, Volume 1540, Pages 411 & 412 and 413-415,	5509
Summit County Deed Records. And being parcel number 06-00493 of	5510
the Summit County Auditor's Records.	5511

Part A

5512

Situated in the Township of Boston, County of Summit, and	5513
State of Ohio; more particularly described as follows: Being a	5514
part of Lot 2, Tract 1, in said Township, beginning at a southwest	5515
corner of 80.45 acres of land, deeded by George Kellogg to F.W.	5516
Kellogg March 9th, 1872, in the center of the Brewery Road,	5517
so-called, at a stake in the line between the north and south half	5518
of said Lot 2, and which point is southwesterly along the center	5519
line of the Brewery Road 28.22 1/2 chains from the north line of	5520
Lot 2, Tract No. 1, Boston Township; thence northeasterly along	5521
the center of said Road as now traveled, 26.33 1/2 chains to a	5522
stake at the center of the Culvert; thence south 26 degrees east 3	5523
chains to a stake; thence southwesterly to a point in the division	5524
line between the north and south half of said Lot 2, 11.25 chains	5525
distant from the first mentioned stake in the center of the	5526
Brewery Road; thence north 89 3/4 degrees west along said division	5527
line 11 chains and 25 links to the place of beginning, containing	5528
10 acres of land, be the same more or less, but subject to all	5529
legal highways.	5530

Being the same piece of property conveyed by Mary C. & W.H.	5531
Smith to Harry M. Farnsworth as shown by recorded deed in Volume	5532
328, page 579 of Summit County Records being subsequently conveyed	5533
by said Harry M. Farnsworth and wife to The American Agricultural	5534
Chemical Company (of Connecticut) by deed dated November 18th,	5535
1905, and recorded in Summit County Records in Volume 627, Page	5536
432, and being subsequently conveyed by The American Agricultural	5537
Chemical Company (of Connecticut) to The American Agricultural	5538
Chemical Company (of Delaware) by deed dated June 30th, 1930, and	5539
recorded in Summit County Records in Volume 1352, Pages 420-421,	5540
and finally conveyed to the State of Ohio by Harvey J. Webster et	5541
ux by deed dated July 1, 1933.	5542

Part B

5543

Situated in the Township of Boston, County of Summit, and	5544
State of Ohio: and being part of Original Lot No. 2, Tract 1, in	5545
said Township and being further described as follows:	5546

Beginning in the center line of Brewery Road at its	5547
intersection with the northerly line of Grantor's lands, said	5548
beginning point being distant southwesterly along the center line	5549
of Brewery Road 28.22 1/2 chains from the North line of said Lot	5550
2, said beginning point being also the southwest corner of 80.45	5551
acres of lands deeded by George Kellogg to F.W. Kellogg, March 9,	5552
1872.	5553

Thence South 89 degrees 45'00" East along the Northerly line	5554
of Grantor's lands, said Northerly line being the southerly line	5555
of lands conveyed to F.W. Kellogg as aforesaid a distance of 900	5556
feet to a point.	5557

Thence South 12 degrees 37'30" West a distance of 700 feet to	5558
a point.	5559

Thence North 89 degrees 45'00" West along a line parallel	5560
with the first described line a distance of 650 feet to a point.	5561

Thence northwesterly along a line that intersects the center	5562
line of Brewery Road at a point distance Southwesterly 400 ft.	5563
from the intersection of said center line with the Northerly line	5564
of Grantor's land as aforesaid.	5565

Thence Northeasterly along the center line of Brewery Road	5566
400 feet to the place of beginning containing 15.257 acres of land	5567
be the same more or less but subject to all legal highways, and	5568
being transferred by a deed from Gilbert Cassity et al to the	5569
State of Ohio, by a deed dated June 12th, 1933.	5570

LESS THE FOLLOWING DESCRIBED PARCEL, GIVEN BY "DEPARTMENTAL	5571
TRANSFER OF STATE-OWNED LANDS" FROM THE ADJUTANT GENERAL'S	5572
DEPARTMENT TO THE OHIO DEPARTMENT OF HIGHWAYS, ON DECEMBER 1,	5573
1966.	5574

Situated in Boston Township, Summit County, State of Ohio,	5575
Lot 2, Town 4-North, Range 11 West, and bounded and described as	5576
follows:	5577

Being a parcel of land lying on the left and right sides of	5578
the centerline of a survey made by the Department of Highways, and	5579
recorded in Book 68, Pages 5-14, of the records of Summit County	5580
and being located within the following described points in the	5581
boundary thereof:	5582

Beginning at the intersection of the centerline tangent of	5583
Riverview Road (County Highway No. 9) with the north line of said	5584
Lot 2; said intersection being at right angles to and 599.99 feet	5585
left of Station 425 plus 95.97 on the centerline survey above	5586
referred to; thence along the centerline tangents of Riverview	5587
Road by the following bearings and distances: South 17°37'18"	5588
East a distance of 349.59 feet to an angle point; South 48°49'23"	5589
East a distance of 185.40 feet to an angle point on the proposed	5590
limited access line; thence along said limited access line by the	5591
following bearings and distances; South 54°14'22" West a distance	5592
of 179.03 feet to an angle point; North 35°45'38" West a distance	5593
of 232.83 feet to an angle point; South 54°14'22" West a distance	5594
of 650.00 feet to an angle point; South 8°48'58" West a distance	5595
of 140.09 feet to an angle point; South 55°21'44" West a distance	5596
of 926.04 feet to the true place of beginning, said point of	5597
beginning being an angle break in the grantor's easterly property	5598
line on a radial line to an 173.44 feet left of Station 406 plus	5599
50.07 on the centerline survey; thence South 11°42'11" West along	5600
the grantor's easterly property line a distance of 534.33 feet to	5601
an angle point on the proposed southerly limited access line, and	5602
passing over the centerline survey at a distance of 224.33 feet,	5603
the intersection of which is at Station 405 plus 06.15 on the	5604
centerline survey; thence South 71°05'06" West along the limited	5605
access line, a distance of 515.23 feet to an angle point; thence	5606
along the grantor's property line by the following bearings and	5607
distances: South 89°22'52" West a distance of 193.53 feet to an	5608
angle point; North 42°26'06" West a distance of 368.80 feet to an	5609
angle point on the limited access line, and passing over the	5610
centerline survey at a distance of 141.65 feet the intersection of	5611
which is at Station 395 plus 89.03 on the centerline survey;	5612
thence along the limited access line by the following bearings and	5613
distances: North 70°22'18" East a distance of 388.57 feet to an	5614
angle point; North 60°57'09" East a distance of 590.51 feet to an	5615
angle point; North 88°56'05" East a distance of 156.00 feet to the	5616
true place of beginning and containing 390,674 square feet (8.969	5617
acres) of land, more or less.	5618

Station 425 plus 49.26 on the centerline survey (Proposed	5619
State Route 217) is Station 72 plus 99.30 on the centerline of	5620
right-of-way of Riverview Road (County Highway No. 9).	5621

Description for the above parcel is based on a survey made by	5622
Bryan E. Moody, registered Surveyor No. 4936.	5623

(B) Consideration for conveyance of the real estate	5624
described in division (A) of this section shall be the greater of	5625
seventy-five thousand dollars or the highest bid at the June 13,	5626
2001, public auction that is not accepted by the Adjutant General.	5627

(C) Upon payment of the purchase price, the Auditor of	5628
State, with the assistance of the Attorney General, shall prepare	5629
a deed to the real estate described in division (A) of this	5630
section. The deed shall state the consideration set forth in	5631
division (B) of this section. The deed shall be executed by the	5632
Governor in the name of the state, countersigned by the Secretary	5633
of State, sealed with the Great Seal of the State, presented in	5634
the Office of the Auditor of State for recording, and delivered to	5635
Summit County. Summit County shall present the deed for recording	5636
in the Office of the Summit County Recorder. Summit County shall	5637
pay the costs of the conveyance of the real estate described in	5638
division (A) of this section.	5639

(D) The net proceeds of the conveyance of the real estate	5640
described in division (A) of this section shall be deposited	5641
pursuant to section 5911.10 of the Revised Code in the State	5642
Treasury to the credit of the Armory Improvements Fund within the	5643
Adjutant General's Department.	5644

(E) This section expires two years after its effective date.

5645

Section 30. The Ohio Public Facilities Commission, upon	5646
request by the Board of Regents, is hereby authorized to issue and	5647
sell, in accordance with Section 2n of Article VIII, Ohio	5648
Constitution, and sections 151.01 and 151.04 of the Revised Code,	5649
original obligations of the State of Ohio, in an aggregate	5650
principal amount not to exceed $50,000,000. These obligations, in	5651
addition to the original issuance of obligations heretofore	5652
authorized by prior acts of the General Assembly, shall be issued	5653
and sold from time to time and in amounts necessary to ensure	5654
sufficient moneys to the credit of the Higher Education	5655
Improvement Fund (Fund 034) to pay costs charged to that fund	5656
associated with previously authorized capital facilities and the	5657
capital facilities in Section 34 of this act for state-supported	5658
and state-assisted institutions of higher education, as estimated	5659
by the Director of Budget and Management.	5660

Section 31. All items in this section are hereby appropriated	5661
as designated out of moneys in the state treasury to the credit of	5662
the Higher Education Improvement Fund (Fund 034). All	5663
appropriations made in this section are for fiscal years 2003 and	5664
2004. The appropriations made in this section are in addition to	5665
any other capital appropriations made for fiscal years 2003 and	5666
2004.	5667

Appropriations

5668

BOR BOARD OF REGENTS

5669

Higher Education Improvement Fund					5670
034	CAP-068	Third Frontier Project	$	50,000,000	5671
Total 034 Higher Education Improvement Fund			$	50,000,000	5672
TOTAL ALL BUDGET FUND GROUPS THIRD FRONTIER PROJECT			$	50,000,000	5673

THIRD FRONTIER PROJECT

5674

The foregoing appropriation item CAP-068, Third Frontier	5675
Project, shall be used to acquire, renovate, or construct	5676
facilities and purchase equipment for research programs technology	5677
development, product development, and commercialization programs	5678
at or involving state-supported and state-assisted institutions of	5679
higher education. The funds shall be used to make grants, awarded	5680
on a competitive basis, and shall be administered by the	5681
Department of Development. Expenditure of these funds shall	5682
comply with Section 2n of Article VIII, Ohio Constitution, and	5683
sections 151.01 and 151.04 of the Revised Code for the period	5684
beginning July 1, 2002, and ending June 30, 2004.	5685

The Department of Development shall develop guidelines	5686
relative to the application for and selection of projects funded	5687
from appropriation item CAP-068, Third Frontier Project. The	5688
guidelines shall be developed in consultation with the Board of	5689
Regents, the Governor's Science and Technology Advisor, and other	5690
interested parties at the discretion of the Department of	5691
Development. The Board of Regents and all state-assisted and	5692
state-supported institutions of higher education shall take all	5693
actions necessary to implement grants awarded by the Department of	5694
Development.	5695

The foregoing capital appropriation item, CAP-068, Third	5696
Frontier Project, for which an appropriation is made from the	5697
Higher Education Improvement Fund (Fund 034) is determined to	5698
consist of capital improvements and capital facilities for	5699
state-supported and state-assisted institutions of higher	5700
education, and is designated for the capital facilities to which	5701
proceeds of obligations in the Higher Education Improvement Fund	5702
(Fund 034) are to be applied.	5703

Within the limits set forth in this section, the Director of	5704
Budget and Management shall establish accounts indicating the	5705
source and amount of funds for each appropriation made in this	5706
section, and shall determine the form and manner in which	5707
appropriation accounts shall be maintained. Expenditures from	5708
appropriations contained in this section shall be accounted for as	5709
though made in the 2002-2004 biennial capital appropriations act	5710
of the 124th General Assembly.	5711

The appropriations made in this section are subject to all	5712
provisions of the 2002-2004 biennial capital appropriations act of	5713
the 124th General Assembly that are generally applicable to such	5714
appropriations.	5715

Section 32. (A) Notwithstanding section 183.02 of the Revised	5716
Code and in addition to any amounts that have been authorized for	5717
transfer from the Tobacco Master Settlement Agreement Fund (Fund	5718
087) to the General Revenue Fund in fiscal year 2002, there is	5719
hereby appropriated in fiscal year 2002, $180,000,000 from the	5720
Tobacco Master Settlement Agreement Fund (Fund 087) to	5721
appropriation item 001-602, GRF Revenue Supplement, for the	5722
purpose of overcoming the current shortfall of revenues to the	5723
General Revenue Fund. The Director shall make disbursements,	5724
using an intrastate transfer voucher, from the foregoing	5725
appropriation to the General Revenue Fund.	5726

Of the tobacco revenue that is credited to the Tobacco Master	5727
Settlement Agreement Fund in fiscal year 2002, the share that is	5728
determined pursuant to section 183.02 of the Revised Code to be	5729
the amount transferred by the Director of Budget and Management	5730
from the Tobacco Master Settlement Agreement Fund to the Education	5731
Facilities Trust Fund (Fund N87) shall be reduced by the amount	5732
that is appropriated from the Tobacco Master Settlement Agreement	5733
Fund to appropriation item 001-602, GRF Revenue Supplement, in	5734
accordance with this section.	5735

(B) Notwithstanding section 183.02 of the Revised Code and	5736
in addition to any amounts that have been authorized for transfer	5737
from the Tobacco Master Settlement Agreement Fund (Fund 087) to	5738
the General Revenue Fund in fiscal year 2003, there is hereby	5739
a3propriated in fiscal year 2003, $165,000,000 from the Tobacco	5740
Master Settlement Agreement Fund (Fund 087) to appropriation item	5741
001-602, GRF Revenue Supplement, for the purpose of overcoming the	5742
current shortfall of revenues to the General Revenue Fund. The	5743
Director shall make disbursements, using an intrastate transfer	5744
voucher, from the foregoing appropriation to the General Revenue	5745
Fund.	5746

Of the tobacco revenue that is credited to the Tobacco Master	5747
Settlement Agreement Fund in fiscal year 2003, the share that is	5748
determined pursuant to section 183.02 of the Revised Code to be	5749
the amount transferred by the Director of Budget and Management	5750
from the Tobacco Master Settlement Agreement Fund to the Education	5751
Facilities Trust Fund (Fund N87) shall be reduced by the amount	5752
that is appropriated from the Tobacco Master Settlement Agreement	5753
Fund to appropriation item 001-602, GRF Revenue Supplement, in	5754
accordance with this section.	5755

Section 33. All items set forth in this section are hereby	5756
appropriated out of any moneys in the state treasury to the credit	5757
of the School Building Program Assistance Fund (Fund 032), created	5758
under section 3318.25 of the Revised Code, derived from the	5759
proceeds of obligations heretofore and herein authorized to pay	5760
the cost of facilities for a system of common schools throughout	5761
the state for the period beginning July 1, 2002, and ending June	5762
30, 2004. The appropriation shall be in addition to any other	5763
appropriation for this purpose.	5764

SCHOOL FACILITIES COMMISSION

5765

CAP-770	School Building Program Assistance	$	345,000,000	5766
Total School Facilities Commission		$	345,000,000	5767
Total School Building Program Assistance Fund		$	345,000,000	5768

SCHOOL BUILDING PROGRAM ASSISTANCE

5769

The foregoing appropriation item CAP-770, School Building	5770
Program Assistance, shall be used by the School Facilities	5771
Commission to provide funding to school districts that receive	5772
conditional approval from the Commission pursuant to Chapter 3318.	5773
of the Revised Code.	5774

Expenditures from appropriations contained in this section	5775
may be accounted for as though made in the main capital	5776
appropriations act for the fiscal year 2003-2004 biennium enacted	5777
by the 124th General Assembly. The School Facilities Commission	5778
shall not commit any of the appropriations made in this section	5779
until after July 1, 2002.	5780

Section 34. The Ohio Public Facilities Commission is hereby	5781
authorized to issue and sell, in accordance with the provisions of	5782
Section 2n of Article VIII, Ohio Constitution, and Chapter 151.	5783
and particularly sections 151.01 and 151.03 of the Revised Code,	5784
original obligations in an aggregate principal amount not to	5785
exceed $345,000,000 to pay the costs associated with previously	5786
authorized capital facilities and the capital facilities	5787
authorized in the immediately preceding section of this act for	5788
the School Building Assistance Program for the School Facilities	5789
Commission to distribute in accordance with their rules and	5790
guidelines pursuant to Chapter 3318. of the Revised Code.	5791

Section 35. The amendment or enactment by this act of	5792
sections 5901.02, 5901.021, and 5901.03 of the Revised Code first	5793
applies to veterans service commission budget requests for the	5794
fiscal year beginning January 1, 2003. Notwithstanding section	5795
5901.11 of the Revised Code to the contrary, if a budget request	5796
for that fiscal year exceeds either of the amounts set forth in	5797
section 5901.021 of the Revised Code as enacted by this act, the	5798
board of county commissioners may exercise the authority granted	5799
under that section with respect to such request regardless of when	5800
the budget request was submitted to the board.	5801

Section 36. Sections 30, 31, 33, 34, and 35 of this act are	5802
subject to the referendum. Therefore, under Ohio Constitution,	5803
Article II, Section 1c and section 1.471 of the Revised Code, the	5804
sections take effect on the ninety-first day after this act is	5805
filed with the Secretary of State. If, however, a referendum	5806
petition is filed against the sections, the sections, unless	5807
rejected at the referendum, take effect at the earliest time	5808
permitted by law.	5809

Section 37. Except as otherwise specifically provided in this	5810
act, the codified and uncodified sections of law amended or	5811
enacted in this act, and the items of law of which the codified	5812
and uncodified sections of law amended or enacted in this act are	5813
composed, are not subject to the referendum. Therefore, under Ohio	5814
Constitution, Article II, Section 1d, the codified and uncodified	5815
sections of law amended or enacted in this act, and the items of	5816
law of which the codified and uncodified sections of law amended	5817
or enacted in this act are composed, except as otherwise	5818
specifically provided in this act, go into immediate effect when	5819
this act becomes law.	5820

Section 38. The repeals by this act of sections 5126.16 and	5821
5126.18 of the Revised Code are not subject to the referendum.	5822
Therefore, under Ohio Constitution, Article II, Section 1d and	5823
section 1.471 of the Revised Code, the repeals go into immediate	5824
effect when this act becomes law.	5825

Section 39. The repeals by this act of sections 5743.023 and	5826
5743.322 of the Revised Code are not subject to the referendum.	5827
Therefore, under Ohio Constitution, Article II, Section 1d, the	5828
repeals go into effect as prescribed in Section 3 of this act.	5829

Section 40. Sections 173.06, 173.061, 173.062, 173.07,	5830
173.071, 173.072, 5740.03, 5901.02, 5901.021, and 5901.03 of the	5831
Revised Code as amended or enacted by this act, and the items of	5832
law of which such sections as amended or enacted by this act are	5833
composed, are subject to the referendum. Therefore, under Ohio	5834
Constitution, Article II, Section 1c and section 1.471 of the	5835
Revised Code, such sections as amended or enacted by this act, and	5836
the items of law of which such sections as amended or enacted by	5837
this act are composed, take effect on the ninety-first day after	5838
this act is filed with the Secretary of State. If, however, a	5839
referendum petition is filed against any such section as amended	5840
or enacted by this act, or against any item of law of which any	5841
such section as amended or enacted by this act is composed, the	5842
section as amended or enacted, or item of law, unless rejected at	5843
the referendum, takes effect at the earliest time permitted by	5844
law.	5845

Section 41. The amendment of sections 5112.01, 5112.06,	5846
5112.07, and 5112.11 of the Revised Code is not intended to	5847
supersede the earlier repeal, with delayed effective date, of	5848
those sections.	5849