Sub. S. B. No. 261 As Reported by the House Finance and Appropriations Committee

SENATOR Carnes

A BILL

To amend sections 124.151, 131.44, 173.06, 173.40,

1333.11, 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, 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,	38
1333.11, 2913.40, 3721.51, 3721.56, 5101.11, 5111.02, 5111.10,	39
5111.86, 5111.871, 5112.01, 5112.06, 5112.07, 5112.11, 5123.041,	40
5126.053, 5126.17, 5733.01, 5733.04, 5743.02, 5743.03, 5743.04,	41
5743.08, 5743.081, 5743.12, 5743.13, 5743.14, 5743.32, 5743.33,	42
5743.34, 5743.35, 5747.01, 5747.02, 5747.05, 5747.21, 5901.02,	43
5901.03, and 5919.34 be amended; sections 5111.10 (5111.90),	44
5111.86 (5111.91), and 5126.17 (5126.18) be amended for the	45
purpose of adopting new section numbers as indicated in	46
parentheses; and sections 131.441, 173.061, 173.062, 173.07,	47
173.071, 173.072, 5111.0112, 5111.082, 5111.091, 5111.92, 5111.93,	48
5111.94, 5747.212, and 5901.021 of the Revised Code be enacted to	49
read as follows:	50

Sec. 124.151. (A) As used in this section, "compensation"	51
includes, but is not limited to, wages and salary, travel	52
allowances paid pursuant to section 101.27 of the Revised Code,	53
and benefits paid pursuant to sections 124.13, 124.19, 124.381,	54
124.382, 124.383, 124.384, 124.385, and 124.386 of the Revised	55
Code.	56

(B) The compensation of any employee whose employment	57
commenced on or after the effective date of this amendment and who	58
is paid by warrant of the auditor of state shall~~, upon the written~~	59
~~authorization of the employee~~ be paid by direct deposit. ~~Such~~Each	60
such employee shall provide to the appointing authority a written	61
authorization for payment by direct deposit. The authorization	62
shall include the designation of a financial institution equipped	63
to accept direct deposits and the number of the account into which	64
the deposit is to be made. The authorization shall remain in	65
effect until withdrawn in writing by the employee or until	66
dishonored by the financial institution. The director of	67
administrative services shall provide by rule adopted under	68
Chapter 119. of the Revised Code for the direct deposit in a	69
financial institution of the compensation of an employee who fails	70
to provide to the appointing authority a written authorization for	71
payment by direct deposit.	72

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

(1) "Surplus revenue" means the excess, if any, of the total	74
fund balance over the required year-end balance.	75

(2) "Total fund balance" means the sum of the unencumbered	76
balance in the general revenue fund on the last day of the	77
preceding fiscal year ~~plus~~, the balance in the excess tax receipts	78
fund created under section 131.441 of the Revised Code on the last	79
day of the preceding fiscal year, and the balance in the budget	80
stabilization fund.	81

(3) "Required year-end balance" means the sum of the	82
following:	83

(a) Five per cent of the general revenue fund revenues for	84
the preceding fiscal year;	85

(b) "Ending fund balance," which means one-half of one per	86
cent of general revenue fund revenues for the preceding fiscal	87
year;	88

(c) "Carryover balance," which means, with respect to a	89
fiscal biennium, the excess, if any, of the estimated general	90
revenue fund appropriation and transfer requirement for the second	91
fiscal year of the biennium over the estimated general revenue	92
fund revenue for that fiscal year;	93

(d) "Capital appropriation reserve," which means the amount,	94
if any, of general revenue fund capital appropriations made for	95
the current biennium that the director of budget and management	96
has determined will be encumbered or disbursed;	97

(e) "Income tax reduction impact reserve," which means an	98
amount equal to the reduction projected by the director of budget	99
and management in income tax revenue in the current fiscal year	100
attributable to the previous reduction in the income tax rate made	101
by the tax commissioner pursuant to division (B) of section	102
5747.02 of the Revised Code.	103

(4) "Estimated general revenue fund appropriation and	104
transfer requirement" means the most recent adjusted	105
appropriations made by the general assembly from the general	106
revenue fund and includes both of the following:	107

(a) Appropriations made and transfers of appropriations from	108
the first fiscal year to the second fiscal year of the biennium in	109
provisions of acts of the general assembly signed by the governor	110
but not yet effective;	111

(b) Transfers of appropriation from the first fiscal year to	112
the second fiscal year of the biennium approved by the controlling	113
board.	114

(5) "Estimated general revenue fund revenue" means the most	115
recent such estimate available to the director of budget and	116
management.	117

(B)(1) Not later than the thirty-first day of July each	118
year, the director of budget and management shall determine the	119
surplus revenue that existed on the preceding thirtieth day of	120
June and transfer from the general revenue fund, to the extent of	121
the unobligated, unencumbered balance on the preceding thirtieth	122
day of June in excess of one-half of one per cent of the general	123
revenue fund revenues in the preceding fiscal year, and from the	124
excess tax receipts fund, the following:	125

(a) First, to the budget stabilization fund, any amount	126
necessary for the balance of the budget stabilization fund to	127
equal five per cent of the general revenue fund revenues of the	128
preceding fiscal year;	129

(b) Then, to the income tax reduction fund, which is hereby	130
created in the state treasury, an amount equal to the surplus	131
revenue.	132

(2) Not later than the thirty-first day of July each year,	133
the director shall determine the percentage that the balance in	134
the income tax reduction fund is of the amount of revenue that the	135
director estimates will be received from the tax levied under	136
section 5747.02 of the Revised Code in the current fiscal year	137
without regard to any reduction under division (B) of that	138
section. If that percentage exceeds thirty-five one hundredths of	139
one per cent, the director shall certify the percentage to the tax	140
commissioner not later than the thirty-first day of July.	141

(C) The director of budget and management shall transfer	142
money in the income tax reduction fund to the general revenue	143
fund, the local government fund, the library and local government	144
support fund, and the local government revenue assistance fund as	145
necessary to offset revenue reductions resulting from the	146
reductions in taxes required under division (B) of section 5747.02	147
of the Revised Code in the respective amounts and percentages	148
prescribed by divisions (A)(1), (2), and (4) of section 5747.03 of	149
the Revised Code as if the amount transferred had been collected	150
as taxes under Chapter 5747. of the Revised Code. If no	151
reductions in taxes are made under that division that affect	152
revenue received in the current fiscal year, the director shall	153
not transfer money from the income tax reduction fund to the	154
general revenue fund, the local government fund, the library and	155
local government support fund, and the local government revenue	156
assistance fund.	157

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

158

(1) "Base year revenue" means sixteen billion one hundred	159
ninety-five million eight hundred thousand dollars.	160

(2) "Target revenue" for each fiscal year after fiscal year	161
2002 means the target fiscal year revenue for the preceding fiscal	162
year multiplied by the greater of the following:	163

(a) One hundred three per cent;

164

(b) One hundred per cent plus the percentage increase in the	165
consumer price index prepared by the United States bureau of labor	166
statistics (all urban consumers, all items) for the twelve-month	167
period ending on the thirty-first day of December preceding the	168
determination made under division (C) of this section.	169

For fiscal year 2002, "target revenue" equals the base year	170
revenue multiplied by the greater of the quantities described in	171
divisions (A)(2)(a) and (b) of this section.	172

(3) "Actual revenue" for a fiscal year means the total	173
amount of taxes credited to the general revenue fund in the fiscal	174
year plus transfers made in the fiscal year from the income tax	175
reduction fund to the general revenue fund under division (C) of	176
section 131.44 of the Revised Code.	177

(4) "Excess revenue" for a fiscal year means the excess, if	178
any, of actual revenue for that fiscal year over the target	179
revenue for that fiscal year.	180

(B) There is hereby created in the state treasury the excess	181
tax receipts fund. Money in the fund shall not be transferred or	182
appropriated from the fund except as provided in division (B)(1)	183
of section 131.44 of the Revised Code.	184

(C) On the thirtieth day of June each year, the director of	185
budget and management shall transfer from the general revenue fund	186
to the excess tax receipts fund an amount equal to the excess	187
revenue for the fiscal year ending on that day.	188

Sec. 173.06. (A) The director of aging shall establish a	189
golden buckeye card program and provide a golden buckeye card to	190
any resident of this state who applies to the director for a card	191
and who is sixty years of age or older or disabled. The director	192
shall devise programs to provide benefits of any kind to card	193
holders, and encourage support and participation in them by all	194
persons, including governmental organizations. Card holders shall	195
be entitled to any benefits granted to them by private persons or	196
organizations, the laws of this state, or ordinances or	197
resolutions of political subdivisions. This section does not	198
require any person or organization to provide benefits to any card	199
holder. The department of aging shall bear all costs of the	200
program, except that the department is not required to bear any	201
costs related to the prescription drug discount programs	202
established pursuant to section 173.061 of the Revised Code.	203

(B) Before issuing a golden buckeye card to any person, the	204
director shall establish the identity of any person who applies	205
for a card and shall ascertain that such person is sixty years of	206
age or older or disabled. The director shall adopt rules under	207
Chapter 119. of the Revised Code to prevent the issuance of cards	208
to persons not qualified to have them. Cards shall contain the	209
signature of the card holder and any other information the	210
director considers necessary to carry out the purposes of the	211
golden buckeye card program under this section. Any card that the	212
director issues shall be held in perpetuity by the original card	213
holder and shall not be transferable to any other person. A	214
person who loses ~~his~~the person's card may obtain another card	215
from the director upon providing the same information to the	216
director as was required for the issuance of the original card.	217

(C) No person shall use a golden buckeye card except to	218
obtain a benefit for the holder of the card to which the holder is	219
entitled under the conditions of the offer.	220

(D) As used in this section, "disabled person" means a	221
person who has some impairment of body or mind that makes the	222
person unfit to work at any substantially remunerative employment	223
that ~~he or she~~the person is substantially able to perform and	224
that will, with reasonable probability, continue for a period of	225
at least twelve months without any present indication of recovery	226
therefrom, or who has been certified as permanently and totally	227
disabled by an agency of this state or the United States having	228
the function of so classifying persons.	229

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

230

(1) "Prescription drug" means a drug that may not be	231
dispensed without a prescription from a licensed health	232
professional authorized to prescribe drugs.	233

(2) "Drug," "licensed health professional authorized to	234
prescribe drugs," "pharmacy," and "prescription" have the same	235
meanings as in section 4729.01 of the Revised Code.	236

(3) "Disabled person" has the same meaning as in section	237
173.06 of the Revised Code.	238

(B) The director of aging shall establish one or more	239
prescription drug discount card programs that enable cardholders	240
to receive discounts on prescription drugs dispensed at	241
participating pharmacies. A card shall be provided to any resident	242
of this state who applies in accordance with rules adopted by the	243
director pursuant to division (F) of this section and is sixty	244
years of age or older or is a disabled person.	245

If the director establishes more than one prescription drug	246
discount card program under this section, an eligible resident may	247
participate in one or more or all of the programs.	248

(C)(1) The director shall solicit and accept proposals from	249
entities separate from the department of aging to provide for	250
administration of a program or programs in accordance with rules	251
adopted under division (F) of this section. Proposals must be	252
submitted not later than a date established by the director. The	253
director shall accept only those proposals that specify all of the	254
following:	255

(a) The estimated amount of the discount based on the	256
entity's previous experience and how the discount is to be	257
achieved;	258

(b) To the extent that discounts on prescription drugs are	259
to be achieved through rebates or discounts in prices that the	260
entity negotiates with drug manufacturers, the proportion of the	261
rebates or discounts to be used to do all of the following:	262

(i) Reduce any costs to cardholders;

263

(ii) Achieve discounts for cardholders;

264

(iii) Cover costs for administering the program.

265

266

(d) If fees are permitted, the fee, if any, to cardholders	267
for participation in the program and whether the fee is to be a	268
one-time or periodic fee;	269

(e) The estimated number and geographic distribution of	270
participating pharmacies and the process for establishing the	271
program's pharmacy network;	272

(f) Financial incentives to be paid to participating	273
pharmacies by the entity;	274

(g) The percentage of prescription drugs to be covered by	275
the program by major drug category;	276

(h) How the entity proposes to improve medication management	277
for cardholders;	278

(i) How cardholders and participating pharmacies will be	279
informed of the discounted price negotiated by the entity;	280

(j) How the entity will handle complaints about the program's	281
operation;	282

(k) The entity's previous experience in managing similar	283
programs;	284

(l) Any additional information requested by the director.

285

(2) The director shall contract with one or more entities to	286
administer a program or programs on the basis of the proposals	287
submitted, but may require an administrator to modify its conduct	288
of a program in accordance with rules adopted under division (F)	289
of this section. Prior to entering into a contract with an entity,	290
the director shall obtain approval of the contract from the	291
controlling board at a public hearing.	292

The director shall adopt rules specifying the period for	293
which a contract will be in effect and may terminate a contract if	294
an administrator fails to conduct a program in accordance with its	295
proposal or with any modifications required by rule. When a	296
contract period ends or a contract is terminated, the director	297
shall enter into a new contract in the manner specified in this	298
section for an original contract. Prior to making a new contract,	299
the director may modify the rules for administration of the	300
program or programs.	301

(D) The rules for administration of a program established	302
under division (C)(2) of this section may permit an administrator	303
to charge a fee for a prescription drug discount card. The fee	304
may be a one-time or periodic fee. If the rules permit a fee to	305
be charged, each entity that submits a proposal under which a fee	306
will be charged shall specify the amount of the fee and the period	307
to which the fee will apply.	308

If an administrator charges a fee for a prescription drug	309
discount card, the rules may require the administrator to issue	310
the cards. If an administrator does not charge a fee, the rules	311
may require the administrator to issue the cards or may include	312
the prescription drug discount information on golden buckeye cards	313
issued under section 173.06 of the Revised Code.	314

(E) As used in this division, "administrator" includes the	315
administrator's parent company and any subsidiary of the parent	316
company.	317

(1) No administrator shall sell any information concerning	318
a person who holds a prescription drug discount card, other than	319
aggregate information that does not identify the cardholder,	320
without the cardholder's written consent.	321

(2) Unless an administrator has the cardholder's written	322
consent, no administrator shall use any personally identifiable	323
information that it obtains concerning a cardholder through the	324
program to promote or sell a program or product offered by the	325
administrator that is not related to the administration of the	326
program. This division does not prohibit an administrator from	327
contacting cardholders concerning participation in or	328
administration of the program, including, but not limited to,	329
mailing a list of pharmacies participating in the program's	330
network.	331

(3) To the extent that a discount is achieved through rebates	332
or discounts in prices that an administrator negotiates with drug	333
manufacturers, an administrator shall use the rebates or discounts	334
to do the following:	335

(a) Reduce any costs to cardholders;

336

(b) Achieve discounts for cardholders;

337

338

(F) The director shall adopt rules in accordance with Chapter	339
119. of the Revised Code that do all of the following:	340

(1) Specify how a resident may apply to participate in any	341
one or more prescription drug discount card programs;	342

(2) Provide for the administration of each program;

343

(3) Specify the circumstances under which the director may	344
require an administrator to modify its conduct of a program;	345

(4) Specify the duration of a contract;

346

(5) Specify whether an administrator may charge a fee for a	347
card and whether an administrator is required to issue the cards;	348

(6) Require that an administrator permit any pharmacy willing	349
to comply with the administrator's terms and conditions for	350
participation in the program's network to participate in any	351
network used by the administrator for its program;	352

(7) Prohibit an administrator from requiring a pharmacy or	353
drug manufacturer to participate in the program's network as a	354
condition of participation in another network operated by the	355
administrator;	356

(8) Permit an administrator to negotiate with one or more	357
drug manufacturers for discounts in drug prices or rebates;	358

(9) Permit an administrator to receive any rebate payments	359
from drug manufacturers;	360

(10) Require that an administrator create a financial	361
incentive program for participating pharmacies through which the	362
administrator shall distribute a portion of any rebate payments	363
from drug manufacturers received under division (F)(9) of this	364
section.	365

(G) Not later than one month after the end of each	366
twelve-month period that one or more prescription drug discount	367
card programs are in operation, each administrator shall collect	368
from each of its participating pharmacies and provide to the	369
director of aging the information required by section 173.071 of	370
the Revised Code.	371

Sec. 173.062. Records identifying the recipients of golden	372
buckeye cards issued under section 173.06 of the Revised Code or	373
prescription drug discount cards issued under section 173.061 of	374
the Revised Code are not public records subject to inspection or	375
copying under section 149.43 of the Revised Code and may be	376
disclosed only at the discretion of the director of aging. The	377
director may disclose only information in records identifying the	378
recipients of golden buckeye cards or prescription drug discount	379
cards that does not contain the recipient's medical history or	380
prescription drug utilization history.	381

Sec. 173.07. Not later than four months after the end of each	382
twelve-month period that one or more prescription drug discount	383
card programs established under section 173.061 of the Revised	384
Code are in operation, the director of aging shall issue a report	385
on the operation of each program during that twelve-month period.	386

Sec. 173.071. Each report issued under section 173.07 of the	387
Revised Code shall be based on information received by the	388
director of aging from each administrator under division (G) of	389
section 173.061 of the Revised Code and specify all of the	390
following about each program:	391

(A) The number of prescription drug discount cardholders;

392

(B) The number of cardholders who used the card at least	393
once in the immediately preceding twelve-month period;	394

(C) The total cost savings to all cardholders generated by	395
the program;	396

(D) The average cost savings to a cardholder per	397
prescription;	398

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

399

(F) The drugs that are discounted under the program listed	400
according to major drug category;	401

(G) For each participating pharmacy, the number of times in	402
the twelve-month period that the pharmacy's customary and usual	403
price was lower than the price offered under the prescription drug	404
discount program;	405

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

406

(I) The length of the contract between the director and the	407
program's administrator;	408

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

409

(K) Other than the cost of prescription drugs, any fees paid	410
by cardholders to participate in the program;	411

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

412

(M) Any costs incurred by participating pharmacies to	413
participate in the program.	414

Sec. 173.072. The director of aging shall submit each report	415
to the governor, the speaker and minority leader of the house of	416
representatives, the president and minority leader of the senate,	417
and the chairpersons and ranking minority members of the	418
committees of the house of representatives and senate that have	419
primary concern with matters pertaining to health care.	420

Sec. 173.40. There is hereby created a component of the	421
medicaid program established under Chapter 5111. of the Revised	422
Code to be known as the preadmission screening system providing	423
options and resources today program, or PASSPORT. The PASSPORT	424
program shall provide home and community-based services as an	425
alternative to nursing facility placement for aged and disabled	426
medicaid recipients. The program shall be operated pursuant to a	427
home and community-based waiver granted by the United States	428
secretary of health and human services under section 1915 of the	429
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 1396n, as	430
amended. The department of aging shall administer the program	431
through ~~an interagency agreement~~a contract entered into with the	432
department of job and family services under section ~~5111.86~~	433
5111.91 of the Revised Code. The directors of aging and job and	434
family services shall adopt rules in accordance with Chapter 119.	435
of the Revised Code to implement the program.	436

Sec. 1333.11. As used in sections 1333.11 to 1333.21 of the	437
Revised Code:	438

(A) "Cost to the retailer" means the invoice cost of	439
cigarettes to the retailer, or the replacement cost of cigarettes	440
to the retailer within thirty days prior to the date of sale, in	441
the quantity last purchased, whichever is lower, less all trade	442
discounts except customary discounts for cash, to which shall be	443
added the cost of doing business by the retailer as evidenced by	444
the standards and the methods of accounting regularly employed by	445
the retailer in the retailer's allocation of overhead costs and	446
expenses, paid or incurred. "Cost to the retailer" must include,	447
without limitation, labor, including salaries of executives and	448
officers, rent, depreciation, selling costs, maintenance of	449
equipment, delivery costs, all types of licenses, insurance,	450
advertising, and taxes, exclusive of county cigarette taxes paid	451
or payable on the cigarettes. Where the sale to the retailer is	452
on a cash and carry basis, the cartage to the retail outlet, if	453
performed or paid for by the retailer, shall be added to the	454
invoice cost of the cigarettes to the retailer. In the absence of	455
proof of a lesser or higher cost by the retailer, the cartage cost	456
shall be three-fourths of one per cent of the invoice cost of the	457
cigarettes to the retailer, not including the amount added thereto	458
by the wholesaler for the face value of state and county cigarette	459
tax stamps affixed to each package of cigarettes.	460

(B) In the absence of proof of a lesser or higher cost of	461
doing business by the retailer making the sale, the cost of doing	462
business to the retailer shall be ~~six~~eight per cent of the	463
invoice cost of the cigarettes to the retailer exclusive of the	464
face value of county cigarette taxes paid on the cigarettes or of	465
the replacement cost of the cigarettes to the retailer within	466
thirty days prior to the date of sale in the quantity last	467
purchased exclusive of the face value of county cigarette taxes	468
paid on the cigarettes, whichever is lower, less all trade	469
discounts except customary discounts for cash.	470

(C) "Cost to the wholesaler" means the invoice cost of the	471
cigarettes to the wholesaler, or the replacement cost of the	472
cigarettes to the wholesaler within thirty days prior to the date	473
of sale, in the quantity last purchased, whichever is lower, less	474
all trade discounts except customary discounts for cash, to which	475
shall be added a wholesaler's markup to cover in part the cost of	476
doing business, which wholesaler's markup, in the absence of proof	477
of a lesser or higher cost of doing business by the wholesaler as	478
evidenced by the standards and methods of accounting regularly	479
employed by the wholesaler in the wholesaler's allocation of	480
overhead costs and expenses, paid or incurred, including without	481
limitation, labor, salaries of executives and officers, rent,	482
depreciation, selling costs, maintenance of equipment, delivery,	483
delivery costs, all types of licenses, taxes, insurance, and	484
advertising, shall be two and five-tenths per cent of said invoice	485
cost of the cigarettes to the wholesaler, to which shall be added	486
the full face value of state and county cigarette tax stamps	487
affixed by the wholesaler to each package of cigarettes, or of the	488
replacement cost of the cigarettes to the wholesaler within thirty	489
days prior to the date of sale in the quantity last purchased,	490
whichever is lower, less all trade discounts except customary	491
discounts for cash. Where the sale by the wholesaler to the	492
retailer is on a cash and carry basis, the wholesaler may, in the	493
absence of proof of a lesser or higher cost, allow to the retailer	494
an amount not to exceed three-fourths of one per cent of the "cost	495
to the wholesaler" excluding the amount added thereto for the face	496
value of state and county cigarette tax stamps affixed to each	497
package of cigarettes.	498

(D) Any person licensed to sell cigarettes as both a	499
wholesaler and a retailer, who does sell cigarettes at retail,	500
shall, in determining "cost to the retailer", first compute "cost	501
to the wholesaler" as provided in division (C) of this section;	502
~~said~~that "cost to the wholesaler" shall then be used in lieu of	503
the lower of either invoice cost or replacement cost less all	504
trade discounts except customary discounts for cash in computing	505
"cost to the retailer" as provided in divisions (A) and (B) of	506
this section.	507

(E) In all advertisements, offers for sale, or sales	508
involving two or more items at a combined price and in all	509
advertisements, offers for sale, or sales involving the giving of	510
any concession of any kind, whether it be coupons or otherwise,	511
the retailer's or wholesaler's selling price shall not be below	512
the "cost to the retailer" or the "cost to wholesaler",	513
respectively, of all articles, products, commodities, and	514
concessions included in such transactions.	515

(F)(1) "Sell at retail," "sales at retail," and "retail	516
sales" include any transfer of title to tangible personal property	517
for a valuable consideration made, in the ordinary course of trade	518
or usual prosecution of the seller's business, to the purchaser	519
for consumption or use.	520

(2) "Sell at wholesale," "sales at wholesale," and	521
"wholesale sales" include any such transfer of title to tangible	522
personal property for the purpose of resale.	523

(G) "Retailer" includes any person who is permitted to sell	524
cigarettes at retail within this state under section 5743.15 of	525
the Revised Code.	526

(H) "Wholesaler" includes any person who is permitted to	527
sell cigarettes at wholesale within this state under ~~said~~that	528
section.	529

(I) "Person" includes individuals, corporations,	530
partnerships, associations, joint-stock companies, business	531
trusts, unincorporated organizations, receivers, or trustees.	532

(J) "County cigarette taxes" means the taxes levied under	533
section 5743.024 or 5743.026 of the Revised Code.	534

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

535

(1) "Statement or representation" means any oral, written,	536
electronic, electronic impulse, or magnetic communication that is	537
used to identify an item of goods or a service for which	538
reimbursement may be made under the medical assistance program or	539
that states income and expense and is or may be used to determine	540
a rate of reimbursement under the medical assistance program.	541

(2) "Medical assistance program" means the program	542
established by the department of job and family services to	543
provide medical assistance under section 5111.01 of the Revised	544
Code and the medicaid program of Title XIX of the "Social Security	545
Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as amended.	546

(3) "Provider" means any person who has signed a provider	547
agreement with the department of job and family services to	548
provide goods or services pursuant to the medical assistance	549
program or any person who has signed an agreement with a party to	550
such a provider agreement under which the person agrees to provide	551
goods or services that are reimbursable under the medical	552
assistance program.	553

(4) "Provider agreement" means an oral or written agreement	554
between the department of job and family services and a person in	555
which the person agrees to provide goods or services under the	556
medical assistance program.	557

(5) "Recipient" means any individual who receives goods or	558
services from a provider under the medical assistance program.	559

(6) "Records" means any medical, professional, financial, or	560
business records relating to the treatment or care of any	561
recipient, to goods or services provided to any recipient, or to	562
rates paid for goods or services provided to any recipient and any	563
records that are required by the rules of the director of job and	564
family services to be kept for the medical assistance program.	565

(B) No person shall knowingly make or cause to be made a	566
false or misleading statement or representation for use in	567
obtaining reimbursement from the medical assistance program.	568

(C) No person, with purpose to commit fraud or knowing that	569
the person is facilitating a fraud, shall do either of the	570
following:	571

(1) Contrary to the terms of the person's provider	572
agreement, charge, solicit, accept, or receive for goods or	573
services that the person provides under the medical assistance	574
program any property, money, or other consideration in addition to	575
the amount of reimbursement under the medical assistance program	576
and the person's provider agreement for the goods or services and	577
any deductibles or co-payments authorized by rules adopted under	578
section ~~5111.02~~5111.0112 of the Revised Code or by any rules	579
adopted pursuant to that section.	580

(2) Solicit, offer, or receive any remuneration, other than	581
any deductibles or co-payments authorized by rules adopted under	582
section ~~5111.02~~5111.0112 of the Revised Code or by any rules	583
adopted pursuant to that section, in cash or in kind, including,	584
but not limited to, a kickback or rebate, in connection with the	585
furnishing of goods or services for which whole or partial	586
reimbursement is or may be made under the medical assistance	587
program.	588

(D) No person, having submitted a claim for or provided	589
goods or services under the medical assistance program, shall do	590
either of the following for a period of at least six years after a	591
reimbursement pursuant to that claim, or a reimbursement for those	592
goods or services, is received under the medical assistance	593
program:	594

(1) Knowingly alter, falsify, destroy, conceal, or remove	595
any records that are necessary to fully disclose the nature of all	596
goods or services for which the claim was submitted, or for which	597
reimbursement was received, by the person;	598

(2) Knowingly alter, falsify, destroy, conceal, or remove	599
any records that are necessary to disclose fully all income and	600
expenditures upon which rates of reimbursements were based for the	601
person.	602

(E) Whoever violates this section is guilty of medicaid	603
fraud. Except as otherwise provided in this division, medicaid	604
fraud is a misdemeanor of the first degree. If the value of	605
property, services, or funds obtained in violation of this section	606
is five hundred dollars or more and is less than five thousand	607
dollars, medicaid fraud is a felony of the fifth degree. If the	608
value of property, services, or funds obtained in violation of	609
this section is five thousand dollars or more and is less than one	610
hundred thousand dollars, medicaid fraud is a felony of the fourth	611
degree. If the value of the property, services, or funds obtained	612
in violation of this section is one hundred thousand dollars or	613
more, medicaid fraud is a felony of the third degree.	614

(F) Upon application of the governmental agency, office, or	615
other entity that conducted the investigation and prosecution in a	616
case under this section, the court shall order any person who is	617
convicted of a violation of this section for receiving any	618
reimbursement for furnishing goods or services under the medical	619
assistance program to which the person is not entitled to pay to	620
the applicant its cost of investigating and prosecuting the case.	621
The costs of investigation and prosecution that a defendant is	622
ordered to pay pursuant to this division shall be in addition to	623
any other penalties for the receipt of that reimbursement that are	624
provided in this section, section 5111.03 of the Revised Code, or	625
any other provision of law.	626

(G) The provisions of this section are not intended to be	627
exclusive remedies and do not preclude the use of any other	628
criminal or civil remedy for any act that is in violation of this	629
section.	630

Sec. 3721.51. The department of job and family services	631
shall:	632

(A) For the purposes specified in section 3721.56 of the	633
Revised Code, determine an annual franchise permit fee on each	634
nursing home in an amount equal to three dollars and thirty cents	635
for fiscal ~~years~~year 2002 ~~and 2003~~, four dollars and thirty cents	636
for fiscal years 2003 through 2005, and one dollar for each fiscal	637
year thereafter, multiplied by the product of the following:	638

(1) The number of beds licensed as nursing home beds, plus	639
any other beds certified as skilled nursing facility beds under	640
Title XVIII or nursing facility beds under Title XIX of the	641
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as	642
amended, on July 1, 1993, and, for each subsequent year, the first	643
day of May of the calendar year in which the fee is determined	644
pursuant to division (A) of section 3721.53 of the Revised Code;	645

(2) The number of days in fiscal year 1994 and, for each	646
subsequent year, the number of days in the fiscal year beginning	647
on the first day of July of the calendar year in which the fee is	648
determined pursuant to division (A) of section 3721.53 of the	649
Revised Code.	650

(B) For the purposes specified in section 3721.56 of the	651
Revised Code, determine an annual franchise permit fee on each	652
hospital in an amount equal to three dollars and thirty cents for	653
fiscal ~~years~~year 2002 ~~and 2003~~, four dollars and thirty cents for	654
fiscal years 2003 through 2005, and one dollar for each fiscal	655
year thereafter, multiplied by the product of the following:	656

(1) The number of beds registered pursuant to section	657
3701.07 of the Revised Code as skilled nursing facility beds or	658
long-term care beds, plus any other beds licensed as nursing home	659
beds under section 3721.02 or 3721.09 of the Revised Code, on July	660
1, 1993, and, for each subsequent year, the first day of May of	661
the calendar year in which the fee is determined pursuant to	662
division (A) of section 3721.53 of the Revised Code;	663

(2) The number of days in fiscal year 1994 and, for each	664
subsequent year, the number of days in the fiscal year beginning	665
on the first day of July of the calendar year in which the fee is	666
determined pursuant to division (A) of section 3721.53 of the	667
Revised Code.	668

If the United States ~~health care financing administration~~	669
centers for medicare and medicaid services determines that the	670
franchise permit fee established by sections 3721.50 ~~through~~to	671
3721.58 of the Revised Code would be an impermissible health care	672
related tax under section 1903(w) of the "Social Security Act," 49	673
Stat. 620 (1935), 42 U.S.C. 1396b(w), as amended, the department	674
of job and family services shall take all necessary actions to	675
cease implementation of those sections in accordance with rules	676
adopted under section 3721.58 of the Revised Code.	677

Sec. 3721.56. (A) Thirty and three-tenths per cent of all	678
payments and penalties paid by nursing homes and hospitals under	679
sections 3721.53 and 3721.54 of the Revised Code for fiscal ~~years~~	680
year 2002 ~~and 2003~~, twenty-three and twenty-six-hundredths per	681
cent of such payments and penalties paid for fiscal years 2003	682
through 2005, and all such payments and penalties paid for	683
subsequent fiscal years, shall be deposited into the "home and	684
community-based services for the aged fund," which is hereby	685
created in the state treasury. The departments of job and family	686
services and aging shall use the moneys in the fund to fund the	687
following in accordance with rules adopted under section 3721.58	688
of the Revised Code:	689

(1) The medical assistance program established under Chapter	690
~~511.~~5111. of the Revised Code;	691

(2) The PASSPORT program established under section 173.40 of	692
the Revised Code;	693

(3) The residential state supplement program established	694
under section 173.35 of the Revised Code.	695

(B) Sixty-nine and seven-tenths per cent of all payments and	696
penalties paid by nursing homes and hospitals under sections	697
3721.53 and 3721.54 of the Revised Code for fiscal ~~years~~year 2002	698
~~and~~, and seventy-six and seventy-four-hundredths per cent of such	699
payments and penalties paid for fiscal years 2003 through 2005,	700
shall be deposited into the nursing facility stabilization fund,	701
which is hereby created in the state treasury. The department of	702
job and family services shall use the money in the fund in the	703
manner provided by Am. Sub. H.B. 94 and Sub. S.B. 261 of the 124th	704
general assembly.	705

Sec. 5101.11. This section does not apply to contracts	706
entered into under section 5111.022, 5111.90, or 5111.91 of the	707
Revised Code.	708

(A) As used in this section:

709

(1) "Entity" includes an agency, board, commission, or	710
department of the state or a political subdivision of the state; a	711
private, nonprofit entity; a school district; a private school; or	712
a public or private institution of higher education.	713

(2) "Federal financial participation" means the federal	714
government's share of expenditures made by an entity in	715
implementing a program administered by the department of job and	716
family services.	717

(B) At the request of any public entity having authority to	718
implement a program administered by the department of job and	719
family services or any private entity under contract with a public	720
entity to implement a program administered by the department, the	721
department may seek to obtain federal financial participation for	722
costs incurred by the entity. Federal financial participation may	723
be sought from programs operated pursuant to Title IV-A, Title	724
IV-E, and Title XIX of the "Social Security Act," 49 Stat. 620	725
(1935), 42 U.S.C. 301, as amended; the "Food Stamp Act of 1964,"	726
78 Stat. 703, 7 U.S.C. 2011, as amended; and any other statute or	727
regulation under which federal financial participation may be	728
available, except that federal financial participation may be	729
sought only for expenditures made with funds for which federal	730
financial participation is available under federal law.	731

(C) All funds collected by the department of job and family	732
services pursuant to division (B) of this section shall be	733
distributed to the entities that incurred the costs, except for	734
any amounts retained by the department pursuant to division (D)(3)	735
of this section.	736

(D) In distributing federal financial participation pursuant	737
to this section, the department may either enter into an agreement	738
with the entity that is to receive the funds or distribute the	739
funds in accordance with rules adopted under division (F) of this	740
section. If the department decides to enter into an agreement to	741
distribute the funds, the agreement may include terms that do any	742
of the following:	743

(1) Provide for the whole or partial reimbursement of any	744
cost incurred by the entity in implementing the program;	745

(2) In the event that federal financial participation is	746
disallowed or otherwise unavailable for any expenditure, require	747
the department of job and family services or the entity, whichever	748
party caused the disallowance or unavailability of federal	749
financial participation, to assume responsibility for the	750
expenditures;	751

(3) Permit the department to retain not more than five per	752
cent of the amount of the federal financial participation to be	753
distributed to the entity;	754

(4) Require the public entity to certify the availability of	755
sufficient unencumbered funds to match the federal financial	756
participation it receives under this section;	757

(5) Establish the length of the agreement, which may be for	758
a fixed or a continuing period of time;	759

(6) Establish any other requirements determined by the	760
department to be necessary for the efficient administration of the	761
agreement.	762

(E) An entity that receives federal financial participation	763
pursuant to this section for a program aiding children and their	764
families shall establish a process for collaborative planning with	765
the department of job and family services for the use of the funds	766
to improve and expand the program.	767

(F) The director of job and family services shall adopt	768
rules as necessary to implement this section, including rules for	769
the distribution of federal financial participation pursuant to	770
this section. The rules shall be adopted in accordance with	771
Chapter 119. of the Revised Code. The director may adopt or amend	772
any statewide plan required by the federal government for a	773
program administered by the department, as necessary to implement	774
this section.	775

(G) Federal financial participation received pursuant to	776
this section shall not be included in any calculation made under	777
section 5101.16 or 5101.161 of the Revised Code.	778

Sec. 5111.0112. The director of job and family services shall	779
examine instituting a copayment program under medicaid. As part	780
of the examination, the director shall determine which groups of	781
medicaid recipients may be subjected to a copayment requirement	782
under federal statutes and regulations and which of those groups	783
are appropriate for a copayment program designed to reduce	784
inappropriate and excessive use of medical goods and services. If,	785
on completion of the examination, the director determines that it	786
is feasible to institute such a copayment program, the director	787
may seek approval from the United States secretary of health and	788
human services to institute the copayment program. If necessary,	789
the director may seek approval by applying for a waiver of federal	790
statutes and regulations. If such approval is obtained, the	791
director shall adopt rules in accordance with Chapter 119. of the	792
Revised Code governing the copayment program.	793

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

794

(1) ~~Reimbursement~~Except as otherwise permitted by federal	795
statute or regulation and at the department's discretion,	796
reimbursement by the department of job and family services to a	797
medical provider for any medical service rendered under the	798
program shall not exceed the authorized reimbursement level for	799
the same service under the medicare program established under	800
Title XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42	801
U.S.C.A. 301, as amended.	802

(2) Reimbursement for freestanding medical laboratory	803
charges shall not exceed the customary and usual fee for	804
laboratory profiles.	805

(3) The department may deduct from payments for services	806
rendered by a medicaid provider under the medical assistance	807
program any amounts the provider owes the state as the result of	808
incorrect medical assistance payments the department has made to	809
the provider.	810

(4) The department may conduct final fiscal audits in	811
accordance with the applicable requirements set forth in federal	812
laws and regulations and determine any amounts the provider may	813
owe the state. When conducting final fiscal audits, the	814
department shall consider generally accepted auditing standards,	815
which include the use of statistical sampling.	816

(5) ~~To the maximum extent that federal laws and regulations~~	817
~~permit the implementation of such a policy, the department may~~	818
~~institute a copayment program for all services provided under the~~	819
~~medical assistance program. The program shall be administered in~~	820
~~accordance with the applicable requirements set forth in federal~~	821
~~laws and regulations.~~	822

~~(6)~~ The number of days of inpatient hospital care for which	823
reimbursement is made on behalf of a recipient of medical	824
assistance to a hospital that is not paid under a	825
diagnostic-related-group prospective payment system shall not	826
exceed thirty days during a period beginning on the day of the	827
recipient's admission to the hospital and ending sixty days after	828
the termination of that hospital stay, except that the department	829
may make exceptions to this limitation. The limitation does not	830
apply to children participating in the program for medically	831
handicapped children established under section 3701.023 of the	832
Revised Code.	833

(B) The director of job and family services may adopt,	834
amend, or rescind rules under Chapter 119. of the Revised Code	835
establishing the amount, duration, and scope of medical services	836
to be included in the medical assistance program. Such rules	837
shall establish the conditions under which services are covered	838
and reimbursed, the method of reimbursement applicable to each	839
covered service, and the amount of reimbursement or, in lieu of	840
such amounts, methods by which such amounts are to be determined	841
for each covered service. Any rules that pertain to nursing	842
facilities or intermediate care facilities for the mentally	843
retarded shall be consistent with sections 5111.20 to 5111.33 of	844
the Revised Code.	845

(C) No health insuring corporation that has a contract to	846
provide health care services to recipients of medical assistance	847
shall restrict the availability to its enrollees of any	848
prescription drugs included in the Ohio medicaid drug formulary as	849
established under rules adopted by the director.	850

(D) The division of any reimbursement between a	851
collaborating physician or podiatrist and a clinical nurse	852
specialist, certified nurse-midwife, or certified nurse	853
practitioner for services performed by the nurse shall be	854
determined and agreed on by the nurse and collaborating physician	855
or podiatrist. In no case shall reimbursement exceed the payment	856
that the physician or podiatrist would have received had the	857
physician or podiatrist provided the entire service.	858

Sec. 5111.082. The director of job and family services, in	859
rules adopted under section 5111.02 of the Revised Code, may	860
establish and implement a supplemental drug rebate program under	861
which drug manufacturers may be required to provide the department	862
of job and family services a supplemental rebate as a condition of	863
having the drug manufacturers' drug products covered by the	864
medicaid program without prior approval. If necessary, the	865
director may apply to the United States secretary of health and	866
human services for a waiver of federal statutes and regulations to	867
establish the supplemental drug rebate program. A supplemental	868
rebate may be, at the director's discretion, one or more cash	869
payments by a drug manufacturer to the department or one or more	870
services a drug manufacturer performs that are guaranteed to	871
produce savings to the medicaid program within one year of the	872
date the director enters into a supplemental drug rebate contract	873
with the drug manufacturer or other date negotiated by the	874
director and drug manufacturer. Examples of services drug	875
manufacturers may perform include disease management, drug product	876
donations, drug utilization control, prescriber and beneficiary	877
counseling and education, and fraud and abuse initiatives.	878

If the director establishes a supplemental drug rebate	879
program, the director shall consult with drug manufacturers	880
regarding the establishment and implementation of the program.	881

If the director establishes a supplemental drug rebate	882
program, the director shall exempt from the program all of a drug	883
manufacturer's drug products that have been approved by the United	884
States food and drug administration for the treatment of either of	885
the following:	886

(A) Mental illness, as defined in section 5122.01 of the	887
Revised Code, including schizophrenia, major depressive disorder,	888
and bipolar disorder;	889

(B) HIV or AIDS, both as defined in section 3701.24 of the	890
Revised Code.	891

Sec. 5111.091. Every three months, the director of job and	892
family services shall submit a report to the president and	893
minority leader of the senate and speaker and minority leader of	894
the house of representatives on the establishment and	895
implementation of programs designed to control the increase of the	896
cost of the medicaid program.	897

Sec. 5111.871. The department of job and family services	898
shall enter into ~~an interagency agreement~~a contract with the	899
department of mental retardation and developmental disabilities	900
under section ~~5111.86~~5111.91 of the Revised Code with regard to	901
the component of the medicaid program established by the	902
department of job and family services under one or more waivers	903
from the United States secretary of health and human services	904
pursuant to section 1915 of the "Social Security Act," 49 Stat.	905
620 (1935), 42 U.S.C.A. 1396n, as amended, to provide eligible	906
medicaid recipients with home and community-based services as an	907
alternative to placement in an intermediate care facility for the	908
mentally retarded. The ~~agreement~~contract shall provide for the	909
department of mental retardation and developmental disabilities to	910
administer the component in accordance with the terms of the	911
waiver. The directors of job and family services and mental	912
retardation and developmental disabilities shall adopt rules in	913
accordance with Chapter 119. of the Revised Code governing the	914
component.	915

If the department of mental retardation and developmental	916
disabilities or the department of job and family services denies	917
an individual's application for home and community-based services	918
provided under this medicaid component, the department that denied	919
the services shall give timely notice to the individual that the	920
individual may request a hearing under section 5101.35 of the	921
Revised Code.	922

The departments of mental retardation and developmental	923
disabilities and job and family services may approve, reduce,	924
deny, or terminate a service included in the individualized	925
service plan developed for a medicaid recipient eligible for home	926
and community-based services provided under this medicaid	927
component. The departments shall consider the recommendations a	928
county board of mental retardation and developmental disabilities	929
makes under division (A)(1)(c) of section 5126.055 of the Revised	930
Code. If either department approves, reduces, denies, or	931
terminates a service, that department shall give timely notice to	932
the medicaid recipient that the recipient may request a hearing	933
under section 5101.35 of the Revised Code.	934

If supported living or residential services, as defined in	935
section 5126.01 of the Revised Code, are to be provided under this	936
component, any person or government entity with a current, valid	937
medicaid provider agreement and a current, valid license under	938
section 5123.19 or certificate under section 5123.045 or 5126.431	939
of the Revised Code may provide the services.	940

~~Sec. 5111.10.~~ Sec. 5111.90. To(A) As used in sections 5111.90 to	941
5111.93 of the Revised Code:	942

(1) "Political subdivision" means a municipal corporation,	943
township, county, school district, or other body corporate and	944
politic responsible for governmental activities only in a	945
geographical area smaller than that of the state.	946

(2) "State agency" means every organized body, office, or	947
agency, other than the department of job and family services,	948
established by the laws of the state for the exercise of any	949
function of state government.	950

(B) To the extent permitted by Title XIX of the "Social	951
Security Act," 4979 Stat. ~~620~~286 (~~1935~~1965), 42 U.S.C.A. ~~301~~	952
1396, as amended, and regulations adopted under that ~~act~~title,	953
the department of job and family services may enter into	954
~~agreements~~contracts with political subdivisions to use funds of	955
the political subdivision to pay the nonfederal share of	956
expenditures under the ~~medical assistance~~medicaid program. The	957
determination and provision of federal financial reimbursement to	958
a subdivision entering into ~~an agreement~~a contract under this	959
section shall be determined by the department, subject to section	960
5111.92 of the Revised Code, approval by the United States	961
secretary of health and human services, and the availability of	962
federal financial participation.	963

~~Sec. 5111.86.~~ Sec. 5111.91. The department of job and family	964
services may enter into ~~interagency agreements~~contracts with one	965
or more other state agencies or political subdivisions to have the	966
state agency or political subdivision administer one or more	967
components of the medicaid program, or one or more aspects of a	968
component, under the department's supervision. A state agency or	969
political subdivision that enters into such ~~an interagency~~	970
~~agreement~~a contract shall comply with the terms of the contract	971
and any rules the director of job and family services has adopted	972
governing the component, or aspect of the component, that the	973
state agency or political subdivision is to administer, including	974
any rules establishing review, audit, and corrective action plan	975
requirements. A contract with a state agency shall be in the form	976
of an interagency agreement.	977

A state agency or political subdivision that enters into an	978
~~interagency agreement~~a contract with the department under this	979
section shall reimburse the department for the nonfederal share of	980
the cost to the department of performing, or contracting for the	981
performance of, a fiscal audit of the component of the medicaid	982
program, or aspect of the component, that the state agency or	983
political subdivision administers if rules governing the	984
component, or aspect of the component, require that a fiscal audit	985
be conducted.	986

There is hereby created in the state treasury the medicaid	987
administrative reimbursement fund. The department shall use money	988
in the fund to pay for the nonfederal share of the cost of a	989
fiscal audit for which a state agency or political subdivision is	990
required by this section to reimburse the department. The	991
department shall deposit the reimbursements into the fund.	992

Sec. 5111.92. (A)(1) Except as provided in division (B)	993
of this section, if a state agency or political subdivision	994
administers one or more components of the medicaid program that	995
the United States department of health and human services	996
approved, and for which federal financial participation was	997
initially obtained, prior to January 1, 2002, or administers one	998
or more aspects of such a component, the department of job and	999
family services may retain or collect not more than ten per cent	1000
of the federal financial participation the state agency or	1001
political subdivision obtains through an approved, administrative	1002
claim regarding the component or aspect of the component. If the	1003
department retains or collects a percentage of such federal	1004
financial participation, the percentage the department retains or	1005
collects shall be specified in a contract the department enters	1006
into with the state agency or political subdivision under section	1007
5111.91 of the Revised Code.	1008

(2) Except as provided in division (B) of this section, if	1009
a state agency or political subdivision administers one or more	1010
components of the medicaid program that the United States	1011
department of health and human services approved on or after	1012
January 1, 2002, or administers one or more aspects of such a	1013
component, the department of job and family services shall retain	1014
or collect not less than three and not more than ten per cent of	1015
the federal financial participation the state agency or political	1016
subdivision obtains through an approved, administrative claim	1017
regarding the component or aspect of the component. The	1018
percentage the department retains or collects shall be specified	1019
in a contract the department enters into with the state agency or	1020
political subdivision under section 5111.91 of the Revised Code.	1021

(B) The department of job and family services may retain or	1022
collect a percentage of federal financial participation under	1023
divisions (A)(1) and (2) of this section only to the extent	1024
permitted by federal statutes and regulations.	1025

(C) All amounts the department retains or collects under	1026
this section shall be deposited into the health care services	1027
administration fund created under section 5111.94 of the Revised	1028
Code.	1029

Sec. 5111.93. The department of job and family services	1030
may retain or collect a percentage of the federal financial	1031
participation included in a supplemental medicaid payment to one	1032
or more medicaid providers owned or operated by a state agency or	1033
political subdivision that brings the payment to such provider or	1034
providers to the upper payment limit established by 42 C.F.R.	1035
447.272. If the department retains or collects a percentage of	1036
that federal financial participation, the department shall adopt a	1037
rule under Chapter 119. of the Revised Code specifying the	1038
percentage the department is to retain or collect. All amounts the	1039
department retains or collects under this section shall be	1040
deposited into the health care services administration fund	1041
created under section 5111.94 of the Revised Code.	1042

Sec. 5111.94. (A) As used in this section, "vendor	1043
offset" means a reduction of a medicaid payment to a medicaid	1044
provider to correct a previous, incorrect medicaid payment to that	1045
provider.	1046

(B) There is hereby created in the state treasury the	1047
health care services administration fund. Except as provided in	1048
division (C) of this section, all the following shall be	1049
deposited into the fund:	1050

(1) Amounts deposited into the fund pursuant to sections	1051
5111.92 and 5111.93 of the Revised Code;	1052

(2) The amount of the state share of all money the	1053
department of job and family services, in fiscal year 2003 and	1054
each fiscal year thereafter, recovers pursuant to a tort action	1055
under the department's right of recovery under section 5101.58 of	1056
the Revised Code that exceeds the state share of all money the	1057
department, in fiscal year 2002, recovers pursuant to a tort	1058
action under that right of recovery;	1059

(3) Subject to division (D) of this section, the amount of	1060
the state share of all money the department of job and family	1061
services, in fiscal year 2003 and each fiscal year thereafter,	1062
recovers through audits of medicaid providers that exceeds the	1063
state share of all money the department, in fiscal year 2002,	1064
recovers through such audits;	1065

(4) Until October 16, 2003, amounts from assessments on	1066
hospitals under section 5112.06 of the Revised Code and	1067
intergovernmental transfers by governmental hospitals under	1068
section 5112.07 of the Revised Code that are deposited into the	1069
fund in accordance with the law.	1070

(C) No funds shall be deposited into the health care	1071
services administration fund in violation of federal statutes or	1072
regulations.	1073

(D) In determining under division (B)(3) of this section	1074
the amount of money the department, in a fiscal year, recovers	1075
through audits of medicaid providers, the amount recovered in the	1076
form of vendor offset shall be excluded.	1077

(E) The director of job and family services shall use funds	1078
available in the health care services administration fund to pay	1079
for costs associated with the administration of the medicaid	1080
program.	1081

Sec. 5112.01. As used in sections 5112.03 to 5112.21 of the	1082
Revised Code:	1083

(A)(1) "Hospital" means a nonfederal hospital to which either	1084
of the following applies:	1085

(a) The hospital is registered under section 3701.07 of the	1086
Revised Code as a general medical and surgical hospital or a	1087
pediatric general hospital, and provides inpatient hospital	1088
services, as defined in 42 C.F.R. 440.10;	1089

(b) The hospital is recognized under the medicare program	1090
established by Title XVIII of the "Social Security Act," 49 Stat.	1091
620 (1935), 42 U.S.C.A. 301, as amended, as a cancer hospital and	1092
is exempt from the medicare prospective payment system.	1093

"Hospital" does not include a hospital operated by a health	1094
insuring corporation that has been issued a certificate of	1095
authority under section 1751.05 of the Revised Code or a hospital	1096
that does not charge patients for services.	1097

(2) "Disproportionate share hospital" means a hospital that	1098
meets the definition of a disproportionate share hospital in rules	1099
adopted under section 5112.03 of the Revised Code.	1100

(B) "Bad debt," "charity care," "courtesy care," and	1101
"contractual allowances" have the same meanings given these terms	1102
in regulations adopted under Title XVIII of the "Social Security	1103
Act."	1104

(C) "Cost reporting period" means the twelve-month period	1105
used by a hospital in reporting costs for purposes of Title XVIII	1106
of the "Social Security Act."	1107

(D) "Governmental hospital" means a county hospital with more	1108
than five hundred registered beds or a state-owned and -operated	1109
hospital with more than five hundred registered beds.	1110

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

1111

(1) The total of assessments to be paid in a program year by	1112
all hospitals under section 5112.06 of the Revised Code, less the	1113
assessments deposited into the legislative budget services fund	1114
under section 5112.19 of the Revised Code and into the health care	1115
services administration fund created under section 5111.94 of the	1116
Revised Code;	1117

(2) The total amount of intergovernmental transfers required	1118
to be made in the same program year by governmental hospitals	1119
under section 5112.07 of the Revised Code, less the amount of	1120
transfers deposited into the legislative budget services fund	1121
under section 5112.19 of the Revised Code and into the health care	1122
services administration fund created under section 5111.94 of the	1123
Revised Code;	1124

(3) The total amount of federal matching funds that will be	1125
made available in the same program year as a result of funds	1126
distributed by the department of job and family services to	1127
hospitals under section 5112.08 of the Revised Code.	1128

(F) "Intergovernmental transfer" means any transfer of money	1129
by a governmental hospital under section 5112.07 of the Revised	1130
Code.	1131

(G) "Medical assistance program" means the program of medical	1132
assistance established under section 5111.01 of the Revised Code	1133
and Title XIX of the "Social Security Act."	1134

(H) "Program year" means a period beginning the first day of	1135
October, or a later date designated in rules adopted under section	1136
5112.03 of the Revised Code, and ending the thirtieth day of	1137
September, or an earlier date designated in rules adopted under	1138
that section.	1139

(I) "Registered beds" means the total number of hospital beds	1140
registered with the department of health, as reported in the most	1141
recent "directory of registered hospitals" published by the	1142
department of health.	1143

(J) "Total facility costs" means the total costs for all	1144
services rendered to all patients, including the direct, indirect,	1145
and overhead cost to the hospital of all services, supplies,	1146
equipment, and capital related to the care of patients, regardless	1147
of whether patients are enrolled in a health insuring corporation,	1148
excluding costs associated with providing skilled nursing services	1149
in distinct-part nursing facility units, as shown on the	1150
hospital's cost report filed under section 5112.04 of the Revised	1151
Code. Effective October 1, 1993, if rules adopted under section	1152
5112.03 of the Revised Code so provide, "total facility costs" may	1153
exclude costs associated with providing care to recipients of any	1154
of the governmental programs listed in division (B) of that	1155
section.	1156

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

1157

Sec. 5112.06. (A) For the purpose of distributing funds to	1158
hospitals under the medical assistance program pursuant to	1159
sections 5112.01 to 5112.21 of the Revised Code and depositing	1160
funds into the legislative budget services fund under section	1161
5112.19 of the Revised Code and into the health care services	1162
administration fund created under section 5111.94 of the Revised	1163
Code, there is hereby imposed an assessment on all hospitals. Each	1164
hospital's assessment shall be based on total facility costs. All	1165
hospitals shall be assessed according to the rate or rates	1166
established each program year by the department of job and family	1167
services in rules adopted under section 5112.03 of the Revised	1168
Code. The department shall assess all hospitals uniformly and in	1169
a manner consistent with federal statutes and regulations. During	1170
any program year, the department shall not assess any hospital	1171
more than two per cent of the hospital's total facility costs.	1172

The department shall establish an assessment rate or rates	1173
each program year that will do both of the following:	1174

(1) Yield funds that, when combined with intergovernmental	1175
transfers and federal matching funds, will produce a program of	1176
sufficient size to pay a substantial portion of the indigent care	1177
provided by hospitals;	1178

(2) Yield funds that, when combined with intergovernmental	1179
transfers and federal matching funds, will produce amounts for	1180
distribution to disproportionate share hospitals that do not	1181
exceed, in the aggregate, the limits prescribed by the United	1182
States health care financing administration under subsection (f)	1183
of section 1923 of the "Social Security Act," 49 Stat. 620 (1935),	1184
42 U.S.C.A. 1396r-4(f), as amended.	1185

(B)(1) Except as provided in division (B)(3) of this	1186
section, each hospital shall pay its assessment in periodic	1187
installments in accordance with a schedule established by the	1188
director of job and family services in rules adopted under section	1189
5112.03 of the Revised Code.	1190

(2) The installments shall be equal in amount, unless either	1191
of the following applies:	1192

(a) The department makes adjustments during a program year	1193
under division (D) of section 5112.09 of the Revised Code in the	1194
total amount of hospitals' assessments;	1195

(b) The director of job and family services determines that	1196
adjustments in the amounts of installments are necessary for the	1197
administration of sections 5112.01 to 5112.21 of the Revised Code	1198
and that unequal installments will not create cash flow	1199
difficulties for hospitals.	1200

(3) The director may adopt rules under section 5112.03 of	1201
the Revised Code establishing alternate schedules for hospitals to	1202
pay assessments under this section in order to reduce hospitals'	1203
cash flow difficulties.	1204

Sec. 5112.07. (A) The department of job and family services	1205
may require governmental hospitals to make intergovernmental	1206
transfers each program year for the purpose of distributing funds	1207
to hospitals under the medical assistance program pursuant to	1208
sections 5112.01 to 5112.21 of the Revised Code and depositing	1209
funds into the legislative budget services fund under section	1210
5112.19 of the Revised Code and into the health care services	1211
administration fund created under section 5111.94 of the Revised	1212
Code. The department shall not require transfers in an amount	1213
that, when combined with hospital assessments paid under section	1214
5112.06 of the Revised Code and federal matching funds, produce	1215
amounts for distribution to disproportionate share hospitals that,	1216
in the aggregate, exceed limits prescribed by the United States	1217
health care financing administration under subsection (f) of	1218
section 1923 of the "Social Security Act," 49 Stat. 620 (1935), 42	1219
U.S.C.A. 1396r-4(f), as amended.	1220

(B) Before or during each program year, the department shall	1221
notify each governmental hospital of the amount of the	1222
intergovernmental transfer it is required to make during the	1223
program year. Each governmental hospital shall make	1224
intergovernmental transfers as required by the department under	1225
this section in periodic installments, executed by electronic fund	1226
transfer, in accordance with a schedule established in rules	1227
adopted under section 5112.03 of the Revised Code.	1228

Sec. 5112.11. ~~The~~Except for moneys deposited into the	1229
legislative budget services fund under section 5112.19 of the	1230
Revised Code and the health care services administration fund	1231
created under section 5111.94 of the Revised Code, the department	1232
of job and family services shall not use money paid to the	1233
department under sections 5112.06 and 5112.07 of the Revised Code	1234
or money that the department pays to hospitals under section	1235
5112.08 of the Revised Code to replace any funds appropriated by	1236
the general assembly for the medical assistance program.	1237

Sec. 5123.041. (A) As used in this section, "habilitation	1238
center" means a habilitation center that provides habilitation	1239
center services under section 5111.041 of the Revised Code.	1240

(B) The department of mental retardation and developmental	1241
disabilities shall do all of the following pursuant to an	1242
~~interagency agreement~~a contract with the department of job and	1243
family services entered into under section ~~5111.86~~5111.91 of the	1244
Revised Code:	1245

(1) Certify habilitation centers that meet the certification	1246
requirements established by rules adopted by the director of job	1247
and family services under section 5111.041 of the Revised Code;	1248

(2) Accept and process medicaid reimbursement claims from	1249
habilitation centers providing habilitation center services to	1250
medicaid recipients under section 5111.041 of the Revised Code;	1251

(3) With medicaid funds provided to the department from the	1252
department of job and family services, pay the medicaid	1253
reimbursement claims accepted and processed under division (B)(2)	1254
of this section;	1255

(4) Perform the other duties included in the interagency	1256
agreement.	1257

(C) The director of mental retardation and developmental	1258
disabilities shall adopt rules in accordance with Chapter 119. of	1259
the Revised Code that do all of the following:	1260

(1) Establish procedures for certification of habilitation	1261
centers;	1262

(2) Establish the fee that may be assessed under division (D)	1263
of this section;	1264

(3) Specify how the department of mental retardation and	1265
developmental disabilities will perform its duties under this	1266
section.	1267

(D) The department of mental retardation and developmental	1268
disabilities may assess the fee established by rule under division	1269
(C)(2) of this section for performing its duties under this	1270
section. The fee may be retained from any payment the department	1271
makes under division (B)(3) of this section.	1272

Sec. 5126.053. (A) As used in this section, "effective tax	1273
rate" ~~has the same meaning as in section 5126.16 of the Revised~~	1274
~~Code~~of a county board of mental retardation and developmental	1275
disabilities means the quotient obtained by dividing (1) the	1276
total taxes charged and payable for a tax year from a tax levied	1277
pursuant to division (L) of section 5705.19 or section 5705.191 or	1278
5705.222 of the Revised Code, after the reduction prescribed by	1279
section 319.301 of the Revised Code but before the reduction	1280
prescribed by section 319.302 or 323.152 of the Revised Code, by	1281
(2) the county board's taxable value for that tax year, as	1282
reported under division (B)(1) of section 5126.18 of the Revised	1283
Code.	1284

(B) Notwithstanding sections 5126.12 and 5126.15 of the	1285
Revised Code with regard to the distribution of state subsidies to	1286
county boards of mental retardation and developmental	1287
disabilities, the department of mental retardation and	1288
developmental disabilities shall, except as provided in division	1289
(D) of this section, reduce the funds provided under those	1290
sections to a county board in each year that the board, on the	1291
first day of January of that year, has an effective tax rate of	1292
less than one and one-half mills for general operations for	1293
programs under which the board provides or arranges the following:	1294

(1) Early childhood services pursuant to section 5126.05 of	1295
the Revised Code for children under age three;	1296

(2) Adult services pursuant to section 5126.05 and division	1297
(B) of section 5126.051 of the Revised Code for individuals age	1298
sixteen or older;	1299

(3) Service and support administration pursuant to section	1300
5126.15 of the Revised Code.	1301

(C) If a county board is subject to the reduction required	1302
by this section, payments to the county board under sections	1303
5126.12 and 5126.15 of the Revised Code shall be made in the same	1304
percentage that the board's effective tax rate is of one and	1305
one-half mills.	1306

(D) A county board subject to the reduction required by this	1307
section may appeal to the department for an exemption from the	1308
reduction. The board may present evidence of its attempts to	1309
obtain passage of levies and any other extenuating circumstances	1310
the board considers relevant. The department shall grant an	1311
exemption if it determines that the board has made good faith	1312
efforts to obtain an effective tax rate of at least one and	1313
one-half mills for general operations for programs under which the	1314
services described in division (B) of this section are provided	1315
and arranged or that there are extenuating circumstances.	1316

(E) Upon the request of the department, each county auditor	1317
shall certify to the department the amount of taxes charged and	1318
payable as described in division (A) of this section for the most	1319
recent tax year for which such information is available.	1320

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

1321

(1) "County board" means a county board of mental	1322
retardation and developmental disabilities.	1323

(2) Notwithstanding section 5126.01 of the Revised Code,	1324
"adult services" means the following services, as they are	1325
identified on individual information forms submitted by county	1326
boards to the department of mental retardation and developmental	1327
disabilities for the purpose of subsidies paid to county boards	1328
under section 5126.12 of the Revised Code, provided to an	1329
individual with mental retardation or other developmental	1330
disability who is at least twenty-two years of age:	1331

(a) Assessment;

1332

(b) Home service;

1333

1334

(d) Community employment services;

1335

(e) Retirement.

1336

(3) "Adult services enrollment" means a county board's	1337
average daily membership in adult services, exclusive of such	1338
services provided to individuals served solely through service and	1339
support administration provided pursuant to section 5126.15 of the	1340
Revised Code or family support services provided pursuant to	1341
section 5126.11 of the Revised Code.	1342

(4) "Taxable value" means the taxable value of a county	1343
board certified under division (B)(1) of this section.	1344

(5) "Per-mill yield" of a county board means the quotient	1345
obtained by dividing (a) the taxable value of the county board by	1346
(b) one thousand.	1347

(6) "Local adult services cost" means a county board's	1348
expenditures for adult services, excluding all federal and state	1349
reimbursements and subsidy allocations received by such boards and	1350
expended for such services, as certified under section 5126.12 of	1351
the Revised Code.	1352

(7) "Statewide average millage" means one thousand	1353
multiplied by the quotient obtained by dividing (a) the total of	1354
the local adult services costs of all county boards by (b) the	1355
total of the taxable values of all county boards.	1356

(8) "County yield" of a county board means the product	1357
obtained by multiplying (a) the statewide average millage by (b)	1358
the per-mill yield of the county board.	1359

(9) "County yield per enrollee" of a county board means the	1360
quotient obtained by dividing (a) the county yield of the county	1361
board by (b) the adult enrollment of the county board.	1362

(10) "Statewide yield per enrollee" means the quotient	1363
obtained by dividing (a) the sum of the county yields of all	1364
county boards by (b) the sum of the adult enrollments of all	1365
county boards.	1366

(11) "Local tax effort for adult services" of a county	1367
board means one thousand multiplied by the quotient obtained by	1368
dividing (a) the local adult services cost of the county board by	1369
(b) the taxable value of the county board.	1370

(12) "Funding percentage" for a fiscal year means the	1371
percentage that the amount appropriated to the department for the	1372
purpose of making payments under this section in the fiscal year	1373
is of the amount computed under division (C)(3) of this section	1374
for the fiscal year.	1375

(13) "Funding-adjusted required millage" for a fiscal year	1376
means the statewide average millage multiplied by the funding	1377
percentage for that fiscal year.	1378

(B)(1) On the request of the director of mental retardation	1379
and developmental disabilities, the tax commissioner shall provide	1380
to the department of mental retardation and developmental	1381
disabilities information specifying ~~each county's~~the taxable	1382
value.	1383

~~(2) On request of the director, each county auditor shall~~	1384
~~submit a certified report to the department specifying the~~	1385
~~county's taxes and the aggregate rate of tax authorized to be~~	1386
~~levied by the board of county commissioners pursuant to division~~	1387
~~(L) of section 5705.19 and section 5705.222 of the Revised Code or~~	1388
~~the aggregate rate of tax authorized pursuant to that division and~~	1389
~~that section and certified to the county auditor under section~~	1390
~~319.30 of the Revised Code. Tax information submitted by the~~	1391
~~county auditor shall be obtained from the most recent tax year for~~	1392
~~which the information is available.~~	1393

~~(3) The~~of property on each county's tax list of real and	1394
public utility property and tax list of personal property for the	1395
most recent tax year for which such information is available. The	1396
director may request any other tax information necessary for the	1397
purposes of ~~sections 5126.16 to 5126.18 of the Revised Code~~this	1398
section.	1399

~~(B) Using the information obtained under this section and~~	1400
~~each board's enrollment, the department shall annually determine~~	1401
~~the hypothetical statewide average revenue per enrollee and, for~~	1402
~~each county board, the hypothetical local revenue per enrollee.~~	1403

(2) On the request of the director, each county board shall	1404
report the county board's adult services enrollment and local	1405
adult services cost.	1406

(C) Each year, the department of mental retardation and	1407
developmental disabilities shall compute the following:	1408

(1) For each county board, the amount, if any, by which the	1409
statewide yield per enrollee exceeds the county yield per	1410
enrollee;	1411

(2) For each county board, the amount of any excess	1412
computed under division (C)(1) of this section multiplied by the	1413
adult services enrollment of the county board;	1414

(3) The sum of the amounts computed under division (C)(2)	1415
of this section for all county boards.	1416

(D) From money appropriated for the purpose, the	1417
department, on or before the thirtieth day of September of each	1418
year, shall provide for payment to each county board of the amount	1419
computed for that county board under division (C)(2) of this	1420
section, subject to any reduction or adjustment under division	1421
(E), (F), or (G) of this section.	1422

(E) If a county board's local tax effort for adult services	1423
is less than the funding-adjusted required millage, the director	1424
shall reduce the amount of payment otherwise computed under	1425
division (C)(2) of this section so that the amount paid, after the	1426
reduction, is the same percentage of the amount computed under	1427
division (C)(2) of this section as the county board's local tax	1428
effort for adult services is of the funding-adjusted required	1429
millage.	1430

If the director reduces the amount of a county board's	1431
payment under this division, the department, not later than the	1432
fifteenth day of July, shall notify the county board of the	1433
reduction and the amount of the reduction. The notice shall	1434
include a statement that the county board may request to be	1435
exempted from the reduction by filing a request with the director,	1436
in the manner and form prescribed by the director, within	1437
twenty-one days after such notification is issued. The board may	1438
present evidence of its attempt to obtain passage of levies or any	1439
other extenuating circumstances the board considers relevant. If	1440
the county board requests a hearing before the director to present	1441
such evidence, the director shall conduct a hearing on the request	1442
unless the director exempts the board from the reduction on the	1443
basis of the evidence presented in the request filed by the board.	1444
Upon receiving a properly and timely filed request for exemption,	1445
but not later than the thirty-first day of August, the director	1446
shall determine whether the county board shall be exempted from	1447
all or a part of the reduction. The director may exempt the board	1448
from all or part of the reduction if the director finds that the	1449
board has made good faith efforts to obtain passage of tax levies	1450
or that there are extenuating circumstances.	1451

(F) If a payment is reduced under division (E) of this	1452
section and the director does not exempt the county board from the	1453
reduction, the amount of the reduction shall be apportioned among	1454
all county boards entitled to payments under this section for	1455
which payments were not so reduced. The amount apportioned to	1456
each county board shall be proportionate to the amount of the	1457
board's payment as computed under division (C)(2) of this section.	1458

(G) If, for any fiscal year, the amount appropriated to the	1459
department for the purpose of this section is less than the amount	1460
computed under division (C)(3) of this section for the fiscal	1461
year, the department shall adjust the amount of each payment as	1462
computed under divisions (C)(2), (E), and (F) of this section by	1463
multiplying that amount by the funding percentage.	1464

(H) The payments authorized by this section are	1465
supplemental to all other funds that may be received by a county	1466
board. A county board shall use the payments solely to pay the	1467
nonfederal share of medicaid expenditures that division (A) of	1468
section 5126.057 of the Revised Code requires the county board to	1469
pay.	1470

Sec. 5733.01. (A) The tax provided by this chapter for	1471
domestic corporations shall be the amount charged against each	1472
corporation organized for profit under the laws of this state and	1473
each nonprofit corporation organized pursuant to Chapter 1729. of	1474
the Revised Code, except as provided in sections 5733.09 and	1475
5733.10 of the Revised Code, for the privilege of exercising its	1476
franchise during the calendar year in which that amount is	1477
payable, and the tax provided by this chapter for foreign	1478
corporations shall be the amount charged against each corporation	1479
organized for profit and each nonprofit corporation organized or	1480
operating in the same or similar manner as nonprofit corporations	1481
organized under Chapter 1729. of the Revised Code, under the laws	1482
of any state or country other than this state, except as provided	1483
in sections 5733.09 and 5733.10 of the Revised Code, for the	1484
privilege of doing business in this state, owning or using a part	1485
or all of its capital or property in this state, holding a	1486
certificate of compliance with the laws of this state authorizing	1487
it to do business in this state, or otherwise having nexus in or	1488
with this state under the Constitution of the United States,	1489
during the calendar year in which that amount is payable.	1490

(B) A corporation is subject to the tax imposed by section	1491
5733.06 of the Revised Code for each calendar year that it is so	1492
organized, doing business, owning or using a part or all of its	1493
capital or property, holding a certificate of compliance, or	1494
otherwise having nexus in or with this state under the	1495
Constitution of the United States, on the first day of January of	1496
that calendar year.	1497

(C) Any corporation subject to this chapter that is not	1498
subject to the federal income tax shall file its returns and	1499
compute its tax liability as required by this chapter in the same	1500
manner as if that corporation were subject to the federal income	1501
tax.	1502

(D) For purposes of this chapter, a federally chartered	1503
financial institution shall be deemed to be organized under the	1504
laws of the state within which its principal office is located.	1505

(E) Any person, as defined in section 5701.01 of the Revised	1506
Code, shall be treated as a corporation for purposes of this	1507
chapter if the person is classified for federal income tax	1508
purposes as an association taxable as a corporation.	1509

(F) For the purposes of this chapter, "disregarded entity"	1510
has the same meaning as in division (D) of section 5745.01 of the	1511
Revised Code.	1512

(1) A person's interest in a disregarded entity or	1513
qualified subchapter S subsidiary, whether held directly or	1514
indirectly, shall be treated as the person's ownership of the	1515
assets and liabilities of the disregarded entity or qualified	1516
subchapter S subsidiary, and the income, including gain or loss,	1517
shall be included in the person's net income under this chapter.	1518

(2) Any sale, exchange, or other disposition of the	1519
person's interest in the disregarded entity or qualified	1520
subchapter S subsidiary, whether held directly or indirectly,	1521
shall be treated as a sale, exchange, or other disposition of the	1522
person's share of the disregarded entity's or qualified subchapter	1523
S subsidiary's underlying assets or liabilities, and the gain or	1524
loss from such sale, exchange, or disposition shall be included in	1525
the person's net income under this chapter.	1526

(3) The disregarded entity's or qualified subchapter S	1527
subsidiary's payroll, property, and sales factors shall be	1528
included in the person's factors.	1529

Sec. 5733.04. As used in this chapter:

1530

(A) "Issued and outstanding shares of stock" applies to	1531
nonprofit corporations, as provided in section 5733.01 of the	1532
Revised Code, and includes, but is not limited to, membership	1533
certificates and other instruments evidencing ownership of an	1534
interest in such nonprofit corporations, and with respect to a	1535
financial institution that does not have capital stock, "issued	1536
and outstanding shares of stock" includes, but is not limited to,	1537
ownership interests of depositors in the capital employed in such	1538
an institution.	1539

(B) "Taxpayer" means a corporation subject to the tax	1540
imposed by section 5733.06 of the Revised Code.	1541

(C) "Resident" means a corporation organized under the laws	1542
of this state.	1543

(D) "Commercial domicile" means the principal place from	1544
which the trade or business of the taxpayer is directed or	1545
managed.	1546

(E) "Taxable year" means the period prescribed by division	1547
(A) of section 5733.031 of the Revised Code upon the net income of	1548
which the value of the taxpayer's issued and outstanding shares of	1549
stock is determined under division (B) of section 5733.05 of the	1550
Revised Code or the period prescribed by division (A) of section	1551
5733.031 of the Revised Code that immediately precedes the date as	1552
of which the total value of the corporation is determined under	1553
division (A) or (C) of section 5733.05 of the Revised Code.	1554

(F) "Tax year" means the calendar year in and for which the	1555
tax imposed by section 5733.06 of the Revised Code is required to	1556
be paid.	1557

(G) "Internal Revenue Code" means the "Internal Revenue Code	1558
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	1559

(H) "Federal income tax" means the income tax imposed by the	1560
Internal Revenue Code.	1561

(I) Except as provided in section 5733.058 of the Revised	1562
Code, "net income" means the taxpayer's taxable income before	1563
operating loss deduction and special deductions, as required to be	1564
reported for the taxpayer's taxable year under the Internal	1565
Revenue Code, subject to the following adjustments:	1566

(1)(a) Deduct any net operating loss incurred in any taxable	1567
years ending in 1971 or thereafter but exclusive of any net	1568
operating loss incurred in taxable years ending prior to January	1569
1, 1971. This deduction shall not be allowed in any tax year	1570
commencing before December 31, 1973, but shall be carried over and	1571
allowed in tax years commencing after December 31, 1973, until	1572
fully utilized in the next succeeding taxable year or years in	1573
which the taxpayer has net income, but in no case for more than	1574
the designated carryover period as described in division (I)(1)(b)	1575
of this section. The amount of such net operating loss, as	1576
determined under the allocation and apportionment provisions of	1577
section 5733.051 and division (B) of section 5733.05 of the	1578
Revised Code for the year in which the net operating loss occurs,	1579
shall be deducted from net income, as determined under the	1580
allocation and apportionment provisions of section 5733.051 and	1581
division (B) of section 5733.05 of the Revised Code, to the extent	1582
necessary to reduce net income to zero with the remaining unused	1583
portion of the deduction, if any, carried forward to the remaining	1584
years of the designated carryover period as described in division	1585
(I)(1)(b) of this section, or until fully utilized, whichever	1586
occurs first.	1587

(b) For losses incurred in taxable years ending on or before	1588
December 31, 1981, the designated carryover period shall be the	1589
five consecutive taxable years after the taxable year in which the	1590
net operating loss occurred. For losses incurred in taxable years	1591
ending on or after January 1, 1982, the designated carryover	1592
period shall be the fifteen consecutive taxable years after the	1593
taxable year in which the net operating loss occurs.	1594

(c) The tax commissioner may require a taxpayer to furnish	1595
any information necessary to support a claim for deduction under	1596
division (I)(1)(a) of this section and no deduction shall be	1597
allowed unless the information is furnished.	1598

(2) Deduct any amount included in net income by application	1599
of section 78 or 951 of the Internal Revenue Code, amounts	1600
received for royalties, technical or other services derived from	1601
sources outside the United States, and dividends received from a	1602
subsidiary, associate, or affiliated corporation that neither	1603
transacts any substantial portion of its business nor regularly	1604
maintains any substantial portion of its assets within the United	1605
States. For purposes of determining net foreign source income	1606
deductible under division (I)(2) of this section, the amount of	1607
gross income from all such sources other than dividend income and	1608
income derived by application of section 78 or 951 of the Internal	1609
Revenue Code shall be reduced by:	1610

(a) The amount of any reimbursed expenses for personal	1611
services performed by employees of the taxpayer for the	1612
subsidiary, associate, or affiliated corporation;	1613

(b) Ten per cent of the amount of royalty income and	1614
technical assistance fees;	1615

(c) Fifteen per cent of the amount of ~~dividends and~~ all	1616
other income.	1617

The amounts described in divisions (I)(2)(a) to (c) of this	1618
section are deemed to be the expenses attributable to the	1619
production of deductible foreign source income unless the taxpayer	1620
shows, by clear and convincing evidence, less actual expenses, or	1621
the tax commissioner shows, by clear and convincing evidence, more	1622
actual expenses.	1623

(3) Add any loss or deduct any gain resulting from the sale,	1624
exchange, or other disposition of a capital asset, or an asset	1625
described in section 1231 of the Internal Revenue Code, to the	1626
extent that such loss or gain occurred prior to the first taxable	1627
year on which the tax provided for in section 5733.06 of the	1628
Revised Code is computed on the corporation's net income. For	1629
purposes of division (I)(3) of this section, the amount of the	1630
prior loss or gain shall be measured by the difference between the	1631
original cost or other basis of the asset and the fair market	1632
value as of the beginning of the first taxable year on which the	1633
tax provided for in section 5733.06 of the Revised Code is	1634
computed on the corporation's net income. At the option of the	1635
taxpayer, the amount of the prior loss or gain may be a percentage	1636
of the gain or loss, which percentage shall be determined by	1637
multiplying the gain or loss by a fraction, the numerator of which	1638
is the number of months from the acquisition of the asset to the	1639
beginning of the first taxable year on which the fee provided in	1640
section 5733.06 of the Revised Code is computed on the	1641
corporation's net income, and the denominator of which is the	1642
number of months from the acquisition of the asset to the sale,	1643
exchange, or other disposition of the asset. The adjustments	1644
described in this division do not apply to any gain or loss where	1645
the gain or loss is recognized by a qualifying taxpayer, as	1646
defined in section 5733.0510 of the Revised Code, with respect to	1647
a qualifying taxable event, as defined in that section.	1648

(4) Deduct the dividend received deduction provided by	1649
section 243 of the Internal Revenue Code.	1650

(5) Deduct any interest or interest equivalent on public	1651
obligations and purchase obligations to the extent included in	1652
federal taxable income. As used in divisions (I)(5) and (6) of	1653
this section, "public obligations," "purchase obligations," and	1654
"interest or interest equivalent" have the same meanings as in	1655
section 5709.76 of the Revised Code.	1656

(6) Add any loss or deduct any gain resulting from the sale,	1657
exchange, or other disposition of public obligations to the extent	1658
included in federal taxable income.	1659

(7) To the extent not otherwise allowed, deduct any	1660
dividends or distributions received by a taxpayer from a public	1661
utility, excluding an electric company, if the taxpayer owns at	1662
least eighty per cent of the issued and outstanding common stock	1663
of the public utility. As used in division (I)(7) of this	1664
section, "public utility" means a public utility as defined in	1665
Chapter 5727. of the Revised Code, whether or not the public	1666
utility is doing business in the state.	1667

(8) To the extent not otherwise allowed, deduct any	1668
dividends received by a taxpayer from an insurance company, if the	1669
taxpayer owns at least eighty per cent of the issued and	1670
outstanding common stock of the insurance company. As used in	1671
division (I)(8) of this section, "insurance company" means an	1672
insurance company that is taxable under Chapter 5725. or 5729. of	1673
the Revised Code.	1674

(9) Deduct expenditures for modifying existing buildings or	1675
structures to meet American national standards institute standard	1676
A-117.1-1961 (R-1971), as amended; provided, that no deduction	1677
shall be allowed to the extent that such deduction is not	1678
permitted under federal law or under rules of the tax	1679
commissioner. Those deductions as are allowed may be taken over a	1680
period of five years. The tax commissioner shall adopt rules	1681
under Chapter 119. of the Revised Code establishing reasonable	1682
limitations on the extent that expenditures for modifying existing	1683
buildings or structures are attributable to the purpose of making	1684
the buildings or structures accessible to and usable by physically	1685
handicapped persons.	1686

(10) Deduct the amount of wages and salaries, if any, not	1687
otherwise allowable as a deduction but that would have been	1688
allowable as a deduction in computing federal taxable income	1689
before operating loss deduction and special deductions for the	1690
taxable year, had the targeted jobs credit allowed and determined	1691
under sections 38, 51, and 52 of the Internal Revenue Code not	1692
been in effect.	1693

(11) Deduct net interest income on obligations of the United	1694
States and its territories and possessions or of any authority,	1695
commission, or instrumentality of the United States to the extent	1696
the laws of the United States prohibit inclusion of the net	1697
interest for purposes of determining the value of the taxpayer's	1698
issued and outstanding shares of stock under division (B) of	1699
section 5733.05 of the Revised Code. As used in division (I)(11)	1700
of this section, "net interest" means interest net of any expenses	1701
taken on the federal income tax return that would not have been	1702
allowed under section 265 of the Internal Revenue Code if the	1703
interest were exempt from federal income tax.	1704

(12)(a) Except as set forth in division (I)(12)(d) of this	1705
section, to the extent not included in computing the taxpayer's	1706
federal taxable income before operating loss deduction and special	1707
deductions, add gains and deduct losses from direct or indirect	1708
sales, exchanges, or other dispositions, made by a related entity	1709
who is not a taxpayer, of the taxpayer's indirect, beneficial, or	1710
constructive investment in the stock or debt of another entity,	1711
unless the gain or loss has been included in computing the federal	1712
taxable income before operating loss deduction and special	1713
deductions of another taxpayer with a more closely related	1714
investment in the stock or debt of the other entity. The amount	1715
of gain added or loss deducted shall not exceed the product	1716
obtained by multiplying such gain or loss by the taxpayer's	1717
proportionate share, directly, indirectly, beneficially, or	1718
constructively, of the outstanding stock of the related entity	1719
immediately prior to the direct or indirect sale, exchange, or	1720
other disposition.	1721

(b) Except as set forth in division (I)(12)(e) of this	1722
section, to the extent not included in computing the taxpayer's	1723
federal taxable income before operating loss deduction and special	1724
deductions, add gains and deduct losses from direct or indirect	1725
sales, exchanges, or other dispositions made by a related entity	1726
who is not a taxpayer, of intangible property other than stock,	1727
securities, and debt, if such property was owned, or used in whole	1728
or in part, at any time prior to or at the time of the sale,	1729
exchange, or disposition by either the taxpayer or by a related	1730
entity that was a taxpayer at any time during the related entity's	1731
ownership or use of such property, unless the gain or loss has	1732
been included in computing the federal taxable income before	1733
operating loss deduction and special deductions of another	1734
taxpayer with a more closely related ownership or use of such	1735
intangible property. The amount of gain added or loss deducted	1736
shall not exceed the product obtained by multiplying such gain or	1737
loss by the taxpayer's proportionate share, directly, indirectly,	1738
beneficially, or constructively, of the outstanding stock of the	1739
related entity immediately prior to the direct or indirect sale,	1740
exchange, or other disposition.	1741

(c) As used in division (I)(12) of this section, "related	1742
entity" means those entities described in divisions (I)(12)(c)(i)	1743
to (iii) of this section:	1744

(i) An individual stockholder, or a member of the	1745
stockholder's family enumerated in section 318 of the Internal	1746
Revenue Code, if the stockholder and the members of the	1747
stockholder's family own, directly, indirectly, beneficially, or	1748
constructively, in the aggregate, at least fifty per cent of the	1749
value of the taxpayer's outstanding stock;	1750

(ii) A stockholder, or a stockholder's partnership, estate,	1751
trust, or corporation, if the stockholder and the stockholder's	1752
partnerships, estates, trusts, and corporations own directly,	1753
indirectly, beneficially, or constructively, in the aggregate, at	1754
least fifty per cent of the value of the taxpayer's outstanding	1755
stock;	1756

(iii) A corporation, or a party related to the corporation	1757
in a manner that would require an attribution of stock from the	1758
corporation to the party or from the party to the corporation	1759
under division (I)(12)(c)(iv) of this section, if the taxpayer	1760
owns, directly, indirectly, beneficially, or constructively, at	1761
least fifty per cent of the value of the corporation's outstanding	1762
stock.	1763

(iv) The attribution rules of section 318 of the Internal	1764
Revenue Code apply for purposes of determining whether the	1765
ownership requirements in divisions (I)(12)(c)(i) to (iii) of this	1766
section have been met.	1767

(d) For purposes of the adjustments required by division	1768
(I)(12)(a) of this section, the term "investment in the stock or	1769
debt of another entity" means only those investments where the	1770
taxpayer and the taxpayer's related entities directly, indirectly,	1771
beneficially, or constructively own, in the aggregate, at any time	1772
during the twenty-four month period commencing one year prior to	1773
the direct or indirect sale, exchange, or other disposition of	1774
such investment at least fifty per cent or more of the value of	1775
either the outstanding stock or such debt of such other entity.	1776

(e) For purposes of the adjustments required by division	1777
(I)(12)(b) of this section, the term "related entity" excludes all	1778
of the following:	1779

(i) Foreign corporations as defined in section 7701 of the	1780
Internal Revenue Code;	1781

(ii) Foreign partnerships as defined in section 7701 of the	1782
Internal Revenue Code;	1783

(iii) Corporations, partnerships, estates, and trusts	1784
created or organized in or under the laws of the Commonwealth of	1785
Puerto Rico or any possession of the United States;	1786

(iv) Foreign estates and foreign trusts as defined in	1787
section 7701 of the Internal Revenue Code.	1788

The exclusions described in divisions (I)(12)(e)(i) to (iv)	1789
of this section do not apply if the corporation, partnership,	1790
estate, or trust is described in any one of divisions (C)(1) to	1791
(5) of section 5733.042 of the Revised Code.	1792

(f) Nothing in division (I)(12) of this section shall	1793
require or permit a taxpayer to add any gains or deduct any losses	1794
described in divisions (I)(12)(f)(i) and (ii) of this section:	1795

(i) Gains or losses recognized for federal income tax	1796
purposes by an individual, estate, or trust without regard to the	1797
attribution rules described in division (I)(12)(c) of this	1798
section;	1799

(ii) A related entity's gains or losses described in	1800
division (I)(12)(b) of this section if the taxpayer's ownership of	1801
or use of such intangible property was limited to a period not	1802
exceeding nine months and was attributable to a transaction or a	1803
series of transactions executed in accordance with the election or	1804
elections made by the taxpayer or a related entity pursuant to	1805
section 338 of the Internal Revenue Code.	1806

(13) Any adjustment required by section 5733.042 of the	1807
Revised Code.	1808

(14) Add any amount claimed as a credit under section	1809
5733.0611 of the Revised Code to the extent that such amount	1810
satisfies either of the following:	1811

(a) It was deducted or excluded from the computation of the	1812
corporation's taxable income before operating loss deduction and	1813
special deductions as required to be reported for the	1814
corporation's taxable year under the Internal Revenue Code;	1815

(b) It resulted in a reduction of the corporation's taxable	1816
income before operating loss deduction and special deductions as	1817
required to be reported for any of the corporation's taxable years	1818
under the Internal Revenue Code.	1819

(15) Deduct the amount contributed by the taxpayer to an	1820
individual development account program established by a county	1821
department of job and family services pursuant to sections 329.11	1822
to 329.14 of the Revised Code for the purpose of matching funds	1823
deposited by program participants. On request of the tax	1824
commissioner, the taxpayer shall provide any information that, in	1825
the tax commissioner's opinion, is necessary to establish the	1826
amount deducted under division (I)(15) of this section.	1827

(16) Any adjustment required by section 5733.0510 of the	1828
Revised Code.	1829

(17)(a) Add five-sixths of the amount of depreciation	1830
expense allowed under subsection (k) of section 168 of the	1831
Internal Revenue Code, including a person's proportionate or	1832
distributive share of the amount of depreciation expense allowed	1833
by that subsection to any pass-through entity in which the person	1834
has direct or indirect ownership. The tax commissioner, under	1835
procedures established by the commissioner, may waive the add-back	1836
related to a pass-through entity if the person owns, directly or	1837
indirectly, less than five per cent of the pass-through entity.	1838

(b) Nothing in division (I)(17) of this section shall be	1839
construed to adjust or modify the adjusted basis of any asset.	1840

(c) To the extent the add-back is attributable to property	1841
generating income or loss allocable under section 5733.051 of the	1842
Revised Code, the add-back shall be allocated to the same location	1843
as the income or loss generated by that property. Otherwise, the	1844
add-back shall be apportioned, subject to division (B)(2)(d) of	1845
section 5733.05 of the Revised Code.	1846

(18)(a) If a person is required to make the add-back under	1847
division (I)(17)(a) of this section for a tax year, the person	1848
shall deduct one-fifth of the amount added back for each of the	1849
succeeding five tax years.	1850

(b) If the amount deducted under division (I)(18)(a) of	1851
this section is attributable to an add-back allocated under	1852
division (I)(17)(c) of this section, the amount deducted shall be	1853
allocated to the same location. Otherwise, the amount shall be	1854
apportioned using the apportionment factors for the taxable year	1855
in which the deduction is taken, subject to division (B)(2)(d) of	1856
section 5733.05 of the Revised Code.	1857

(J) Any term used in this chapter has the same meaning as	1858
when used in comparable context in the laws of the United States	1859
relating to federal income taxes unless a different meaning is	1860
clearly required. Any reference in this chapter to the Internal	1861
Revenue Code includes other laws of the United States relating to	1862
federal income taxes.	1863

(K) "Financial institution" has the meaning given by section	1864
5725.01 of the Revised Code but does not include a production	1865
credit association as described in 85 Stat. 597, 12 U.S.C.A. 2091.	1866

(L)(1) A "qualifying holding company" is any corporation	1867
satisfying all of the following requirements:	1868

(a) Subject to divisions (L)(2) and (3) of this section, the	1869
net book value of the corporation's intangible assets is greater	1870
than or equal to ninety per cent of the net book value of all of	1871
its assets and at least fifty per cent of the net book value of	1872
all of its assets represents direct or indirect investments in the	1873
equity of, loans and advances to, and accounts receivable due from	1874
related members;	1875

(b) At least ninety per cent of the corporation's gross	1876
income for the taxable year is attributable to the following:	1877

(i) The maintenance, management, ownership, acquisition,	1878
use, and disposition of its intangible property, its aircraft the	1879
use of which is not subject to regulation under 14 C.F.R. part 121	1880
or part 135, and any real property described in division (L)(2)(c)	1881
of this section;	1882

(ii) The collection and distribution of income from such	1883
property.	1884

(c) The corporation is not a financial institution on the	1885
last day of the taxable year ending prior to the first day of the	1886
tax year;	1887

(d) The corporation's related members make a good faith and	1888
reasonable effort to make timely and fully the adjustments	1889
required by division (C)(2) of section 5733.05 of the Revised Code	1890
and to pay timely and fully all uncontested taxes, interest,	1891
penalties, and other fees and charges imposed under this chapter;	1892

(e) Subject to division (L)(4) of this section, the	1893
corporation elects to be treated as a qualifying holding company	1894
for the tax year.	1895

A corporation otherwise satisfying divisions (L)(1)(a) to (e)	1896
of this section that does not elect to be a qualifying holding	1897
company is not a qualifying holding company for the purposes of	1898
this chapter.	1899

(2)(a)(i) For purposes of making the ninety per cent	1900
computation under division (L)(1)(a) of this section, the net book	1901
value of the corporation's assets shall not include the net book	1902
value of aircraft or real property described in division	1903
(L)(1)(b)(i) of this section.	1904

(ii) For purposes of making the fifty per cent computation	1905
under division (L)(1)(a) of this section, the net book value of	1906
assets shall include the net book value of aircraft or real	1907
property described in division (L)(1)(b)(i) of this section.	1908

(b)(i) As used in division (L) of this section, "intangible	1909
asset" includes, but is not limited to, the corporation's direct	1910
interest in each pass-through entity only if at all times during	1911
the corporation's taxable year ending prior to the first day of	1912
the tax year the corporation's and the corporation's related	1913
members' combined direct and indirect interests in the capital or	1914
profits of such pass-through entity do not exceed fifty per cent.	1915
If the corporation's interest in the pass-through entity is an	1916
intangible asset for that taxable year, then the distributive	1917
share of any income from the pass-through entity shall be income	1918
from an intangible asset for that taxable year.	1919

(ii) If a corporation's and the corporation's related	1920
members' combined direct and indirect interests in the capital or	1921
profits of a pass-through entity exceed fifty per cent at any time	1922
during the corporation's taxable year ending prior to the first	1923
day of the tax year, "intangible asset" does not include the	1924
corporation's direct interest in the pass-through entity, and the	1925
corporation shall include in its assets its proportionate share of	1926
the assets of any such pass-through entity and shall include in	1927
its gross income its distributive share of the gross income of	1928
such pass-through entity in the same form as was earned by the	1929
pass-through entity.	1930

(iii) A pass-through entity's direct or indirect	1931
proportionate share of any other pass-through entity's assets	1932
shall be included for the purpose of computing the corporation's	1933
proportionate share of the pass-through entity's assets under	1934
division (L)(2)(b)(ii) of this section, and such pass-through	1935
entity's distributive share of any other pass-through entity's	1936
gross income shall be included for purposes of computing the	1937
corporation's distributive share of the pass-through entity's	1938
gross income under division (L)(2)(b)(ii) of this section.	1939

(c) For the purposes of divisions (L)(1)(b)(i), (1)(b)(ii),	1940
(2)(a)(i), and (2)(a)(ii) of this section, real property is	1941
described in division (L)(2)(c) of this section only if all of the	1942
following conditions are present at all times during the taxable	1943
year ending prior to the first day of the tax year:	1944

(i) The real property serves as the headquarters of the	1945
corporation's trade or business, or is the place from which the	1946
corporation's trade or business is principally managed or	1947
directed;	1948

(ii) Not more than ten per cent of the value of the real	1949
property and not more than ten per cent of the square footage of	1950
the building or buildings that are part of the real property is	1951
used, made available, or occupied for the purpose of providing,	1952
acquiring, transferring, selling, or disposing of tangible	1953
property or services in the normal course of business to persons	1954
other than related members, the corporation's employees and their	1955
families, and such related members' employees and their families.	1956

(d) As used in division (L) of this section, "related	1957
member" has the same meaning as in division (A)(6) of section	1958
5733.042 of the Revised Code without regard to division (B) of	1959
that section.	1960

(3) The percentages described in division (L)(1)(a) of this	1961
section shall be equal to the quarterly average of those	1962
percentages as calculated during the corporation's taxable year	1963
ending prior to the first day of the tax year.	1964

(4) With respect to the election described in division	1965
(L)(1)(e) of this section:	1966

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

1967

(b) The election need not accompany the report; rather, the	1968
election may accompany a subsequently filed but timely application	1969
for refund and timely amended report, or a subsequently filed but	1970
timely petition for reassessment;	1971

1972

(d) The election applies only to the tax year specified by	1973
the corporation;	1974

(e) The corporation's related members comply with division	1975
(L)(1)(d) of this section.	1976

Nothing in division (L)(4) of this section shall be construed	1977
to extend any statute of limitations set forth in this chapter.	1978

(M) "Qualifying controlled group" means two or more	1979
corporations that satisfy the ownership and control requirements	1980
of division (A) of section 5733.052 of the Revised Code.	1981

(N) "Limited liability company" means any limited liability	1982
company formed under Chapter 1705. of the Revised Code or under	1983
the laws of any other state.	1984

(O) "Pass-through entity" means a corporation that has made	1985
an election under subchapter S of Chapter 1 of Subtitle A of the	1986
Internal Revenue Code for its taxable year under that code, or a	1987
partnership, limited liability company, or any other person, other	1988
than an individual, trust, or estate, if the partnership, limited	1989
liability company, or other person is not classified for federal	1990
income tax purposes as an association taxed as a corporation.	1991

(P) "Electric company" and "combined company" have the same	1992
meanings as in section 5727.01 of the Revised Code.	1993

Sec. 5743.02. To provide revenues for the general revenue	1994
fund, an excise tax on sales of cigarettes is hereby levied at the	1995
rate of ~~eleven~~twenty-seven and one-half mills on each cigarette.	1996

Only one sale of the same article shall be used in computing	1997
the amount of tax due.	1998

The treasurer of state shall place to the credit of the tax	1999
refund fund created by section 5703.052 of the Revised Code, out	2000
of receipts from the tax levied by this section, amounts equal to	2001
the refunds certified by the tax commissioner pursuant to section	2002
5743.05 of the Revised Code. The balance of taxes collected under	2003
such section, after the credits to the tax refund fund, shall be	2004
paid into the general revenue fund.	2005

Sec. 5743.03. Except as provided in section 5743.04 of the	2006
Revised Code, the taxes imposed under sections 5743.02, ~~5743.023,~~	2007
5743.024, and 5743.026 of the Revised Code shall be paid by the	2008
purchase of stamps. A stamp shall be affixed to each package of	2009
an aggregate denomination not less than the amount of the tax upon	2010
the contents thereof. The stamp, so affixed, shall be prima-facie	2011
evidence of payment of the tax. Except as is provided in the	2012
rules prescribed by the tax commissioner under authority of	2013
sections 5743.01 to 5743.20 of the Revised Code, and unless such	2014
stamps have been previously affixed, they shall be so affixed by	2015
each wholesale dealer, and canceled by writing or stamping across	2016
the face thereof the number assigned to such wholesale dealer by	2017
the tax commissioner for that purpose, prior to the delivery of	2018
any cigarettes to any person in this state, or in the case of a	2019
tax levied pursuant to section 5743.024 or 5743.026 of the Revised	2020
Code, prior to the delivery of cigarettes to any person in the	2021
county in which the tax is levied.	2022

Except as provided in the rules prescribed by the	2023
commissioner under authority of sections 5743.01 to 5743.20 of the	2024
Revised Code, and unless such stamps have been previously affixed,	2025
each retail dealer shall within twenty-four hours after the	2026
receipt of any cigarettes at the retail dealer's place of business	2027
and prior to the delivery thereof to any person in this state, or	2028
in the case of a tax levied pursuant to section 5743.024 or	2029
5743.026 of the Revised Code prior to the delivery thereof to any	2030
person in the county in which the tax is levied, so affix such	2031
stamps and cancel same by writing or stamping across the face	2032
thereof the number assigned to such retail dealer by the	2033
commissioner for that purpose.	2034

Whenever any cigarettes are found in the place of business of	2035
any retail dealer without proper tax stamps affixed thereto and	2036
canceled, it is presumed that such cigarettes are kept therein in	2037
violation of sections 5743.01 to 5743.20 of the Revised Code.	2038

Each wholesale dealer and each retail dealer who purchases	2039
cigarettes without proper tax stamps affixed thereto shall, on or	2040
before the thirty-first day of the month following the close of	2041
each semiannual period, which period shall end on the thirtieth	2042
day of June and the thirty-first day of December of each year,	2043
make and file a return of the preceding semiannual period, on such	2044
form as is prescribed by the tax commissioner, showing the	2045
dealer's entire purchases and sales of cigarettes and stamps or	2046
impressions for such semiannual period and accurate inventories as	2047
of the beginning and end of each semiannual period of cigarettes,	2048
stamped or unstamped; cigarette tax stamps affixed or unaffixed	2049
and unused meter impressions; and such other information as the	2050
commissioner finds necessary to the proper administration of	2051
sections 5743.01 to 5743.20 of the Revised Code. The commissioner	2052
may extend the time for making and filing returns and may remit	2053
all or any part of amounts of penalties which may become due under	2054
sections 5743.01 to 5743.20 of the Revised Code. The wholesale or	2055
retail dealer shall deliver the return together with a remittance	2056
of the tax deficiency reported thereon to the treasurer of state.	2057
The treasurer of state shall stamp or otherwise mark on the return	2058
the date it was received and shall also show thereon by stamp or	2059
otherwise a payment or nonpayment of the deficiency shown by the	2060
return. Thereafter, the treasurer of state shall immediately	2061
transmit all returns filed under this section to the commissioner.	2062
Any wholesale or retail dealer who fails to file a return under	2063
this section and the rules of the commissioner may be required,	2064
for each day the dealer so fails, to forfeit and pay into the	2065
state treasury the sum of one dollar as revenue arising from the	2066
tax imposed by sections 5743.01 to 5743.20 of the Revised Code and	2067
such sum may be collected by assessment in the manner provided in	2068
section 5743.081 of the Revised Code. If the commissioner finds	2069
it necessary in order to insure the payment of the tax imposed by	2070
sections 5743.01 to 5743.20 of the Revised Code, the commissioner	2071
may require returns and payments to be made other than	2072
semiannually. The returns shall be signed by the wholesale or	2073
retail dealer or an authorized agent thereof.	2074

Sec. 5743.04. The tax commissioner shall design and procure	2075
the stamps provided for in section 5743.03 of the Revised Code and	2076
shall enforce and administer sections 5743.01 to 5743.44 of the	2077
Revised Code. With respect to packages containing any number of	2078
cigarettes other than twenty, if the commissioner finds that it is	2079
practicable to collect the taxes levied under sections 5743.02,	2080
~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code by any method	2081
other than that provided in this section and section 5743.03 of	2082
the Revised Code, hethe commissioner may by rule prescribe such	2083
other method for payment of the taxes upon such packages of	2084
cigarettes as will adequately protect the revenue; provided, that	2085
in any case where the commissioner prescribes that the taxes upon	2086
such packages of cigarettes shall be paid on the basis of returns	2087
filed by a wholesale or retail dealer, said returns, together with	2088
a remittance of all taxes due as shown thereon, shall be filed	2089
with the treasurer of state not later than the tenth day of the	2090
month following the month in which such cigarettes are sold in	2091
this state. The commissioner may promulgate rules in accordance	2092
with sections 119.01 to 119.13 of the Revised Code as hethe	2093
commissioner deems necessary to carry out sections 5743.01 to	2094
5743.44 of the Revised Code and may adopt different detailed rules	2095
applicable to diverse methods and conditions of sale of	2096
cigarettes, prescribing, in each class of cases, upon whom, as	2097
between the wholesale dealer and the retail dealer, the primary	2098
duty of affixing stamps shall rest, and the manner in which stamps	2099
shall be affixed. A copy of such rules shall be furnished to	2100
every licensed dealer as provided in sections 119.01 to 119.13 of	2101
the Revised Code. Any such rule so furnished which excuses a	2102
wholesale dealer from affixing stamps under the circumstances of	2103
the particular case shall be a defense in the prosecution of such	2104
dealer for violation of section 5743.03 of the Revised Code.	2105

The commissioner, ~~if he determines~~after determining that it	2106
is practicable to evidence payment of the taxes levied under	2107
sections 5743.02, ~~5743.023,~~ 5743.024, and 5743.026 of the Revised	2108
Code by impression made by a metering device, shall by resolution	2109
provide that such metering device may be used in lieu of the	2110
stamps otherwise provided for in section 5743.03 of the Revised	2111
Code. The commissioner may authorize any wholesale or retail	2112
dealer to use the metering device approved by ~~him~~the	2113
commissioner. Such device before being used shall be sealed by	2114
the treasurer of state, and shall be used only in accordance with	2115
the rules prescribed by the commissioner.	2116

Wholesale and retail dealers authorized to use said device	2117
shall prepay the tax represented by meter impressions and shall	2118
deliver the metering device to the treasurer of state or county	2119
treasurer in the county in which the place of business of any	2120
wholesaler or retailer is located if such treasurer is designated	2121
by the treasurer of state, who shall seal the meter in accordance	2122
with the prepayments so made.	2123

Sec. 5743.08. Whenever the tax commissioner discovers any	2124
cigarettes, subject to the taxes levied under section 5743.02,	2125
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code, and upon	2126
which the taxes have not been paid, the commissioner may seize and	2127
take possession of such cigarettes, which shall thereupon be	2128
forfeited to the state, and the commissioner may within a	2129
reasonable time thereafter sell the forfeited cigarettes. From	2130
the proceeds of the sale, the tax commissioner shall pay the costs	2131
incurred in such proceedings, and any proceeds remaining after the	2132
costs are paid shall be considered as revenue arising from the	2133
tax; provided that the seizure and sale shall not be deemed to	2134
relieve any person from the fine or imprisonment provided for	2135
violation of sections 5743.01 to 5743.20 of the Revised Code. The	2136
sale shall be made where it is most convenient and economical. The	2137
tax commissioner may order the destruction of the forfeited	2138
cigarettes if the quantity or quality of the cigarettes is not	2139
sufficient to warrant their sale.	2140

Sec. 5743.081. (A) If any wholesale dealer or retail dealer	2141
fails to pay the tax levied under ~~sections~~section 5743.02,	2142
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code as required by	2143
sections 5743.01 to 5743.20 of the Revised Code, and by the rules	2144
of the tax commissioner, or fails to collect the tax from the	2145
purchaser or consumer, the commissioner may make an assessment	2146
against the wholesale or retail dealer based upon any information	2147
in the commissioner's possession.	2148

The commissioner may make an assessment against any wholesale	2149
or retail dealer who fails to file a return required by section	2150
5743.03 or 5743.025 of the Revised Code.	2151

No assessment shall be made against any wholesale or retail	2152
dealer for any taxes imposed under ~~sections~~section 5743.02,	2153
~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code more than	2154
three years after the last day of the calendar month which	2155
immediately follows the semiannual period prescribed in section	2156
5743.03 of the Revised Code in which the sale was made, or more	2157
than three years after the semiannual return for such period is	2158
filed, whichever is later. This section does not bar an	2159
assessment against any wholesale or retail dealer who fails to	2160
file a return as required by section 5743.03 or 5743.025 of the	2161
Revised Code, or who files a fraudulent return.	2162

A penalty of up to thirty per cent may be added to the amount	2163
of every assessment made under this section. The commissioner may	2164
adopt rules providing for the imposition and remission of	2165
penalties added to assessments made under this section.	2166

The commissioner shall give the party assessed written notice	2167
of the assessment as provided in section 5703.37 of the Revised	2168
Code. The notice shall specify separately any portion of the	2169
assessment that represents a county tax.	2170

(B) Unless the party to whom the notice of assessment is	2171
directed files with the commissioner within sixty days after	2172
service of the notice of assessment, either personally or by	2173
certified mail, a petition for reassessment in writing, signed by	2174
the party assessed, or by the party's authorized agent having	2175
knowledge of the facts, the assessment shall become final and the	2176
amount of the assessment shall be due and payable from the party	2177
assessed to the treasurer of state. The petition shall indicate	2178
the objections of the party assessed, but additional objections	2179
may be raised in writing if received prior to the date shown on	2180
the final determination by the commissioner.	2181

Unless the petitioner waives a hearing, the commissioner	2182
shall assign a time and place for the hearing on the petition and	2183
notify the petitioner of the time and place of the hearing by	2184
personal service or certified mail, but the commissioner may	2185
continue the hearing from time to time if necessary.	2186

The commissioner may make such correction to an assessment as	2187
the commissioner finds proper. The commissioner shall serve a	2188
copy of the final determination on the petitioner by personal	2189
service or certified mail, and the commissioner's decision in the	2190
matter shall be final, subject to appeal as provided in section	2191
5717.02 of the Revised Code. Only objections decided on the	2192
merits by the board of tax appeals or a court shall be given	2193
collateral estoppel or res judicata effect in considering an	2194
application for refund of amounts paid pursuant to the assessment.	2195

(C) After an assessment becomes final, if any portion of the	2196
assessment remains unpaid, including accrued interest, a certified	2197
copy of the commissioner's entry making the assessment final may	2198
be filed in the office of the clerk of the court of common pleas	2199
in the county in which the wholesale or retail dealer's place of	2200
business is located or the county in which the party assessed	2201
resides. If the party assessed maintains no place of business in	2202
this state and is not a resident of this state, the certified copy	2203
of the entry may be filed in the office of the clerk of the court	2204
of common pleas of Franklin county.	2205

The clerk, immediately upon the filing of the commissioner's	2206
entry, shall enter a judgment for the state against the party	2207
assessed in the amount shown on the entry. The judgment may be	2208
filed by the clerk in a loose-leaf book entitled "special	2209
judgments for state cigarette sales tax," and shall have the same	2210
effect as other judgments. Execution shall issue upon the	2211
judgment upon the request of the tax commissioner, and all laws	2212
applicable to sales on execution shall apply to sales made under	2213
the judgment except as otherwise provided in sections 5743.01 to	2214
5743.20 of the Revised Code.	2215

The portion of the assessment not paid within sixty days	2216
after the assessment was issued shall bear interest at the rate	2217
per annum prescribed by section 5703.47 of the Revised Code from	2218
the day the tax commissioner issues the assessment until it is	2219
paid. Interest shall be paid in the same manner as the tax and	2220
may be collected by the issuance of an assessment under this	2221
section.	2222

(D) All money collected by the commissioner under this	2223
section shall be paid to the treasurer of state, and when paid	2224
shall be considered as revenue arising from the taxes imposed by	2225
sections 5743.01 to 5743.20 of the Revised Code.	2226

Sec. 5743.12. No person shall make a false entry upon an	2227
invoice, package, or container of cigarettes upon which an entry	2228
is required by sections 5743.01 to 5743.20 of the Revised Code,	2229
nor shall any person present any such false entry for the	2230
inspection of the tax commissioner with intent to evade the tax	2231
levied under section 5743.02, ~~5743.023,~~ 5743.024, or 5743.026 of	2232
the Revised Code.	2233

Sec. 5743.13. No person shall falsely or fraudulently make,	2234
forge, alter, or counterfeit any stamp prescribed by the tax	2235
commissioner under section 5743.03 of the Revised Code, or cause	2236
to be falsely or fraudulently made, forged, altered, or	2237
counterfeited any such stamp, or possess any counterfeiting	2238
device, or knowingly and willfully utter, publish, pass, or tender	2239
as true, any such false, altered, forged, or counterfeited stamp,	2240
or use more than once any such stamp for the purpose of evading	2241
the tax levied under section 5743.02, ~~5743.023,~~ 5743.024, or	2242
5743.026 of the Revised Code.	2243

Sec. 5743.14. (A) The tax commissioner may inspect any	2244
place where cigarettes subject to the tax levied under section	2245
5743.02, ~~5743.023,~~ 5743.024, or 5743.026 of the Revised Code are	2246
sold or stored.	2247

(B) No person shall prevent or hinder the tax commissioner	2248
from making a full inspection of any place where cigarettes	2249
subject to the tax levied under section 5743.02, ~~5743.023,~~	2250
5743.024, or 5743.026 of the Revised Code are sold or stored, or	2251
prevent or hinder the full inspection of invoices, books, records,	2252
or papers required to be kept by sections 5743.01 to 5743.20 of	2253
the Revised Code.	2254

Sec. 5743.32. To provide revenue for the general revenue	2255
fund of the state, an excise tax is hereby levied on the use,	2256
consumption, or storage for consumption of cigarettes by consumers	2257
in this state at the rate of ~~eleven~~twenty-seven and one-half	2258
mills on each cigarette. The tax shall not apply if the tax	2259
levied by section 5743.02 of the Revised Code has been paid.	2260

The money received into the state treasury from the excise	2261
tax levied by this section shall be credited to the general	2262
revenue fund.	2263

Sec. 5743.33. Every person who has acquired cigarettes for	2264
use, storage, or other consumption subject to the tax levied under	2265
section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the Revised	2266
Code, shall, on or before the fifteenth day of the month following	2267
receipt of such cigarettes, file with the tax commissioner a	2268
return showing the amount of cigarettes acquired, together with	2269
remittance of the tax thereon. No such person shall transport	2270
within this state, cigarettes that have a wholesale value in	2271
excess of sixty dollars, unless hethat person has obtained	2272
consent to transport the cigarettes from the department of	2273
taxation prior to such transportation. Such consent shall not be	2274
required if the applicable taxes levied under sections 5743.02,	2275
~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code have been	2276
paid. Application for the consent shall be in the form prescribed	2277
by the tax commissioner.	2278

Every person transporting such cigarettes shall possess the	2279
consent while transporting or possessing the cigarettes within	2280
this state and shall produce the consent upon request of any law	2281
enforcement officer or authorized agent of the tax commissioner.	2282

Any person transporting such cigarettes without the consent	2283
required by this section, shall be subject to the provisions of	2284
this chapter, including the applicable taxes imposed by sections	2285
5743.02, ~~5743.023,~~ 5743.024, and 5743.026 of the Revised Code.	2286

Sec. 5743.34. If any person required to pay the tax levied	2287
under section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the	2288
Revised Code, fails to make remittance, the tax commissioner may	2289
issue an assessment against that person based on any information	2290
in the commissioner's possession.	2291

Sections 5743.081 and 5743.082 of the Revised Code relating	2292
to the assessments or findings, appeals from assessments or	2293
findings, the effect of assessments or findings before or after	2294
hearing and before or after filing the same in the office of the	2295
clerk of the court of common pleas, and all sections relating to	2296
the procedure, authority, duties, liabilities, powers, and	2297
privileges of the person assessed, the commissioner, the clerk,	2298
and all other public officials, shall be applicable to assessments	2299
made pursuant to this section.	2300

Sec. 5743.35. No person required by section 5743.33 of the	2301
Revised Code to file a return with the tax commissioner shall fail	2302
to make such return, or fail to pay the applicable taxes levied	2303
under section 5743.32, ~~5743.322,~~ 5743.323, or 5743.324 of the	2304
Revised Code, or fail to pay any lawful assessment issued by the	2305
commissioner.	2306

Sec. 5747.01. Except as otherwise expressly provided or	2307
clearly appearing from the context, any term used in this chapter	2308
has the same meaning as when used in a comparable context in the	2309
Internal Revenue Code, and all other statutes of the United States	2310
relating to federal income taxes.	2311

As used in this chapter:

2312

(A) "Adjusted gross income" or "Ohio adjusted gross income"	2313
means adjusted gross income as defined and used in the Internal	2314
Revenue Code, adjusted as provided in this section:	2315

(1) Add interest or dividends on obligations or securities	2316
of any state or of any political subdivision or authority of any	2317
state, other than this state and its subdivisions and authorities.	2318

(2) Add interest or dividends on obligations of any	2319
authority, commission, instrumentality, territory, or possession	2320
of the United States that are exempt from federal income taxes but	2321
not from state income taxes.	2322

(3) Deduct interest or dividends on obligations of the	2323
United States and its territories and possessions or of any	2324
authority, commission, or instrumentality of the United States to	2325
the extent included in federal adjusted gross income but exempt	2326
from state income taxes under the laws of the United States.	2327

(4) Deduct disability and survivor's benefits to the extent	2328
included in federal adjusted gross income.	2329

(5) Deduct benefits under Title II of the Social Security	2330
Act and tier 1 railroad retirement benefits to the extent included	2331
in federal adjusted gross income under section 86 of the Internal	2332
Revenue Code.	2333

(6) ~~Add, in~~In the case of a taxpayer who is a beneficiary of	2334
a trust that makes an accumulation distribution as defined in	2335
section 665 of the Internal Revenue Code, add, for the	2336
beneficiary's taxable years beginning before 2002 or after 2004,	2337
the portion, if any, of such distribution that does not exceed the	2338
undistributed net income of the trust for the three taxable years	2339
preceding the taxable year in which the distribution is made to	2340
the extent that the portion was not included in the trust's	2341
taxable income for any of the trust's taxable years beginning in	2342
2002, 2003, or 2004. "Undistributed net income of a trust" means	2343
the taxable income of the trust increased by (a)(i) the additions	2344
to adjusted gross income required under division (A) of this	2345
section and (ii) the personal exemptions allowed to the trust	2346
pursuant to section 642(b) of the Internal Revenue Code, and	2347
decreased by (b)(i) the deductions to adjusted gross income	2348
required under division (A) of this section, (ii) the amount of	2349
federal income taxes attributable to such income, and (iii) the	2350
amount of taxable income that has been included in the adjusted	2351
gross income of a beneficiary by reason of a prior accumulation	2352
distribution. Any undistributed net income included in the	2353
adjusted gross income of a beneficiary shall reduce the	2354
undistributed net income of the trust commencing with the earliest	2355
years of the accumulation period.	2356

(7) Deduct the amount of wages and salaries, if any, not	2357
otherwise allowable as a deduction but that would have been	2358
allowable as a deduction in computing federal adjusted gross	2359
income for the taxable year, had the targeted jobs credit allowed	2360
and determined under sections 38, 51, and 52 of the Internal	2361
Revenue Code not been in effect.	2362

(8) Deduct any interest or interest equivalent on public	2363
obligations and purchase obligations to the extent included in	2364
federal adjusted gross income.	2365

(9) Add any loss or deduct any gain resulting from the sale,	2366
exchange, or other disposition of public obligations to the extent	2367
included in federal adjusted gross income.	2368

(10) Deduct or add amounts, as provided under section	2369
5747.70 of the Revised Code, related to contributions to variable	2370
college savings program accounts made or tuition credits purchased	2371
pursuant to Chapter 3334. of the Revised Code.	2372

(11)(a) Deduct, to the extent not otherwise allowable as a	2373
deduction or exclusion in computing federal or Ohio adjusted gross	2374
income for the taxable year, the amount the taxpayer paid during	2375
the taxable year for medical care insurance and qualified	2376
long-term care insurance for the taxpayer, the taxpayer's spouse,	2377
and dependents. No deduction for medical care insurance under	2378
division (A)(11) of this section shall be allowed either to any	2379
taxpayer who is eligible to participate in any subsidized health	2380
plan maintained by any employer of the taxpayer or of the	2381
taxpayer's spouse, or to any taxpayer who is entitled to, or on	2382
application would be entitled to, benefits under part A of Title	2383
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	2384
301, as amended. For the purposes of division (A)(11)(a) of this	2385
section, "subsidized health plan" means a health plan for which	2386
the employer pays any portion of the plan's cost. The deduction	2387
allowed under division (A)(11)(a) of this section shall be the net	2388
of any related premium refunds, related premium reimbursements, or	2389
related insurance premium dividends received during the taxable	2390
year.	2391

(b) Deduct, to the extent not otherwise deducted or excluded	2392
in computing federal or Ohio adjusted gross income during the	2393
taxable year, the amount the taxpayer paid during the taxable	2394
year, not compensated for by any insurance or otherwise, for	2395
medical care of the taxpayer, the taxpayer's spouse, and	2396
dependents, to the extent the expenses exceed seven and one-half	2397
per cent of the taxpayer's federal adjusted gross income.	2398

(c) For purposes of division (A)(11) of this section,	2399
"medical care" has the meaning given in section 213 of the	2400
Internal Revenue Code, subject to the special rules, limitations,	2401
and exclusions set forth therein, and "qualified long-term care"	2402
has the same meaning given in section 7702(B)(b) of the Internal	2403
Revenue Code.	2404

(12)(a) Deduct any amount included in federal adjusted gross	2405
income solely because the amount represents a reimbursement or	2406
refund of expenses that in any year the taxpayer had deducted as	2407
an itemized deduction pursuant to section 63 of the Internal	2408
Revenue Code and applicable United States department of the	2409
treasury regulations. The deduction otherwise allowed under	2410
division (A)(12)(a) of this section shall be reduced to the extent	2411
the reimbursement is attributable to an amount the taxpayer	2412
deducted under this section in any taxable year.	2413

(b) Add any amount not otherwise included in Ohio adjusted	2414
gross income for any taxable year to the extent that the amount is	2415
attributable to the recovery during the taxable year of any amount	2416
deducted or excluded in computing federal or Ohio adjusted gross	2417
income in any taxable year.	2418

(13) Deduct any portion of the deduction described in	2419
section 1341(a)(2) of the Internal Revenue Code, for repaying	2420
previously reported income received under a claim of right, that	2421
meets both of the following requirements:	2422

(a) It is allowable for repayment of an item that was	2423
included in the taxpayer's adjusted gross income for a prior	2424
taxable year and did not qualify for a credit under division (A)	2425
or (B) of section 5747.05 of the Revised Code for that year;	2426

(b) It does not otherwise reduce the taxpayer's adjusted	2427
gross income for the current or any other taxable year.	2428

(14) Deduct an amount equal to the deposits made to, and net	2429
investment earnings of, a medical savings account during the	2430
taxable year, in accordance with section 3924.66 of the Revised	2431
Code. The deduction allowed by division (A)(14) of this section	2432
does not apply to medical savings account deposits and earnings	2433
otherwise deducted or excluded for the current or any other	2434
taxable year from the taxpayer's federal adjusted gross income.	2435

(15)(a) Add an amount equal to the funds withdrawn from a	2436
medical savings account during the taxable year, and the net	2437
investment earnings on those funds, when the funds withdrawn were	2438
used for any purpose other than to reimburse an account holder	2439
for, or to pay, eligible medical expenses, in accordance with	2440
section 3924.66 of the Revised Code;	2441

(b) Add the amounts distributed from a medical savings	2442
account under division (A)(2) of section 3924.68 of the Revised	2443
Code during the taxable year.	2444

(16) Add any amount claimed as a credit under section	2445
5747.059 of the Revised Code to the extent that such amount	2446
satisfies either of the following:	2447

(a) The amount was deducted or excluded from the computation	2448
of the taxpayer's federal adjusted gross income as required to be	2449
reported for the taxpayer's taxable year under the Internal	2450
Revenue Code;	2451

(b) The amount resulted in a reduction of the taxpayer's	2452
federal adjusted gross income as required to be reported for any	2453
of the taxpayer's taxable years under the Internal Revenue Code.	2454

(17) Deduct the amount contributed by the taxpayer to an	2455
individual development account program established by a county	2456
department of job and family services pursuant to sections 329.11	2457
to 329.14 of the Revised Code for the purpose of matching funds	2458
deposited by program participants. On request of the tax	2459
commissioner, the taxpayer shall provide any information that, in	2460
the tax commissioner's opinion, is necessary to establish the	2461
amount deducted under division (A)(17) of this section.	2462

(18) Beginning in taxable year 2001, if the taxpayer is	2463
married and files a joint return and the combined federal adjusted	2464
gross income of the taxpayer and the taxpayer's spouse for the	2465
taxable year does not exceed one hundred thousand dollars, or if	2466
the taxpayer is single and has a federal adjusted gross income for	2467
the taxable year not exceeding fifty thousand dollars, deduct	2468
amounts paid during the taxable year for qualified tuition and	2469
fees paid to an eligible institution for the taxpayer, the	2470
taxpayer's spouse, or any dependent of the taxpayer, who is a	2471
resident of this state and is enrolled in or attending a program	2472
that culminates in a degree or diploma at an eligible institution.	2473
The deduction may be claimed only to the extent that qualified	2474
tuition and fees are not otherwise deducted or excluded for any	2475
taxable year from federal or Ohio adjusted gross income. The	2476
deduction may not be claimed for educational expenses for which	2477
the taxpayer claims a credit under section 5747.27 of the Revised	2478
Code.	2479

(19) Add any reimbursement received during the taxable year	2480
of any amount the taxpayer deducted under division (A)(18) of this	2481
section in any previous taxable year to the extent the amount is	2482
not otherwise included in Ohio adjusted gross income.	2483

(20)(a) Add five-sixths of the amount of depreciation	2484
expense allowed by subsection (k) of section 168 of the Internal	2485
Revenue Code, including the taxpayer's proportionate or	2486
distributive share of the amount of depreciation expense allowed	2487
by that subsection to a pass-through entity in which the taxpayer	2488
has a direct or indirect ownership interest. The tax	2489
commissioner, under procedures established by the commissioner,	2490
may waive the add-back related to a pass-through entity if the	2491
taxpayer owns, directly or indirectly, less than five per cent of	2492
the pass-through entity.	2493

(b) Nothing in division (A)(20) of this section shall be	2494
construed to adjust or modify the adjusted basis of any asset.	2495

(c) To the extent the add-back required under division	2496
(A)(20)(a) of this section is attributable to property generating	2497
nonbusiness income or loss allocated under section 5747.20 of the	2498
Revised Code, the add-back shall be sitused to the same location	2499
as the nonbusiness income or loss generated by the property for	2500
the purpose of determining the credit under division (A) of	2501
section 5747.05 of the Revised Code. Otherwise, the add-back	2502
shall be apportioned, subject to one or more of the four	2503
alternative methods of apportionment enumerated in section 5747.21	2504
of the Revised Code.	2505

(21)(a) If the taxpayer was required to add an amount under	2506
division (A)(20)(a) of this section for a taxable year, deduct	2507
one-fifth of the amount so added for each of the five succeeding	2508
taxable years.	2509

(b) If the amount deducted under division (A)(21)(a) of	2510
this section is attributable to an add-back allocated under	2511
division (A)(20)(c) of this section, the amount deducted shall be	2512
sitused to the same location. Otherwise, the add-back shall be	2513
apportioned using the apportionment factors for the taxable year	2514
in which the deduction is taken, subject to one or more of the	2515
four alternative methods of apportionment enumerated in section	2516
5747.21 of the Revised Code.	2517

(B) "Business income" means income arising from	2518
transactions, activities, and sources in the regular course of a	2519
trade or business and includes income from real property, tangible	2520
property, and intangible property if the acquisition, rental,	2521
management, and disposition of the property constitute integral	2522
parts of the regular course of a trade or business operation.	2523
"Business income" includes income, including gain or loss, from a	2524
partial or complete liquidation of a business, including, but not	2525
limited to, gain or loss from the sale or other disposition of	2526
goodwill.	2527

(C) "Nonbusiness income" means all income other than	2528
business income and may include, but is not limited to,	2529
compensation, rents and royalties from real or tangible personal	2530
property, capital gains, interest, dividends and distributions,	2531
patent or copyright royalties, or lottery winnings, prizes, and	2532
awards.	2533

(D) "Compensation" means any form of remuneration paid to an	2534
employee for personal services.	2535

(E) "Fiduciary" means a guardian, trustee, executor,	2536
administrator, receiver, conservator, or any other person acting	2537
in any fiduciary capacity for any individual, trust, or estate.	2538

(F) "Fiscal year" means an accounting period of twelve	2539
months ending on the last day of any month other than December.	2540

(G) "Individual" means any natural person.

2541

(H) "Internal Revenue Code" means the "Internal Revenue Code	2542
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2543

(I) "Resident" means:

2544

(1) An individual who is domiciled in this state, subject to	2545
section 5747.24 of the Revised Code;	2546

(2) The estate of a decedent who at the time of death was	2547
domiciled in this state. The domicile tests of section 5747.24 of	2548
the Revised Code and any election under section 5747.25 of the	2549
Revised Code are not controlling for purposes of division (I)(2)	2550
of this section.	2551

(3) Division (I)(3) of this section applies only to taxable	2552
years of a trust beginning in 2002, 2003, or 2004.	2553

A trust that, in whole or part, resides in this state. If	2554
only part of a trust resides in this state, the trust is a	2555
resident only with respect to that part. For the purposes of	2556
division (I)(3) of this section, a trust resides in this state to	2557
the extent that it consists, directly or indirectly, in whole or	2558
in part, of the net current value, adjusted for any profits,	2559
gains, or losses, of assets or liabilities that were transferred	2560
to the trust by any of the following:	2561

(a) The will of a decedent who was domiciled in this state	2562
at the time of the decedent's death;	2563

(b) A person who is domiciled in this state if the trust or	2564
part of the trust is not irrevocable;	2565

(c) A person who was domiciled in this state when the trust	2566
or part of the trust became irrevocable, but only if, for all or	2567
some portion of the current taxable year of the trust, at least	2568
one beneficiary of the trust is a resident for the purposes of	2569
this chapter.	2570

For the purpose of divisions (I)(3)(b) and (c) of this	2571
section, the transfer of net assets to a trust is irrevocable to	2572
the extent that the transferor is not considered to be the owner	2573
of the net assets of the trust under sections 671 to 678 of the	2574
Internal Revenue Code.	2575

The tax commissioner may adopt rules to ascertain the part	2576
of a trust residing in this state under this division.	2577

(J) "Nonresident" means an individual or estate that is not	2578
a resident. An individual who is a resident for only part of a	2579
taxable year is a nonresident for the remainder of that taxable	2580
year.	2581

(K) "Pass-through entity" has the same meaning as in section	2582
5733.04 of the Revised Code.	2583

(L) "Return" means the notifications and reports required to	2584
be filed pursuant to this chapter for the purpose of reporting the	2585
tax due and includes declarations of estimated tax when so	2586
required.	2587

(M) "Taxable year" means the calendar year or the taxpayer's	2588
fiscal year ending during the calendar year, or fractional part	2589
thereof, upon which the adjusted gross income is calculated	2590
pursuant to this chapter.	2591

(N) "Taxpayer" means any person subject to the tax imposed	2592
by section 5747.02 of the Revised Code or any pass-through entity	2593
that makes the election under division (D) of section 5747.08 of	2594
the Revised Code.	2595

(O) "Dependents" means dependents as defined in the Internal	2596
Revenue Code and as claimed in the taxpayer's federal income tax	2597
return for the taxable year or which the taxpayer would have been	2598
permitted to claim had the taxpayer filed a federal income tax	2599
return.	2600

(P) "Principal county of employment" means, in the case of a	2601
nonresident, the county within the state in which a taxpayer	2602
performs services for an employer or, if those services are	2603
performed in more than one county, the county in which the major	2604
portion of the services are performed.	2605

(Q) As used in sections 5747.50 to 5747.55 of the Revised	2606
Code:	2607

(1) "Subdivision" means any county, municipal corporation,	2608
park district, or township.	2609

(2) "Essential local government purposes" includes all	2610
functions that any subdivision is required by general law to	2611
exercise, including like functions that are exercised under a	2612
charter adopted pursuant to the Ohio Constitution.	2613

(R) "Overpayment" means any amount already paid that exceeds	2614
the figure determined to be the correct amount of the tax.	2615

(S) "Taxable income" applies only to estates ~~only~~and	2616
trusts, and means taxable income as defined and used in the	2617
Internal Revenue Code adjusted as follows:	2618

(1) Add interest or dividends on obligations or securities	2619
of any state or of any political subdivision or authority of any	2620
state, other than this state and its subdivisions and authorities;	2621

(2) Add interest or dividends on obligations of any	2622
authority, commission, instrumentality, territory, or possession	2623
of the United States that are exempt from federal income taxes but	2624
not from state income taxes;	2625

(3) Add the amount of personal exemption allowed to the	2626
estate pursuant to section 642(b) of the Internal Revenue Code;	2627

(4) Deduct interest or dividends on obligations of the	2628
United States and its territories and possessions or of any	2629
authority, commission, or instrumentality of the United States	2630
that are exempt from state taxes under the laws of the United	2631
States;	2632

(5) Deduct the amount of wages and salaries, if any, not	2633
otherwise allowable as a deduction but that would have been	2634
allowable as a deduction in computing federal taxable income for	2635
the taxable year, had the targeted jobs credit allowed under	2636
sections 38, 51, and 52 of the Internal Revenue Code not been in	2637
effect;	2638

(6) Deduct any interest or interest equivalent on public	2639
obligations and purchase obligations to the extent included in	2640
federal taxable income;	2641

(7) Add any loss or deduct any gain resulting from sale,	2642
exchange, or other disposition of public obligations to the extent	2643
included in federal taxable income;	2644

(8) Except in the case of the final return of an estate, add	2645
any amount deducted by the taxpayer on both its Ohio estate tax	2646
return pursuant to section 5731.14 of the Revised Code, and on its	2647
federal income tax return in determining either federal adjusted	2648
gross income or federal taxable income;	2649

(9)(a) Deduct any amount included in federal taxable income	2650
solely because the amount represents a reimbursement or refund of	2651
expenses that in a previous year the decedent had deducted as an	2652
itemized deduction pursuant to section 63 of the Internal Revenue	2653
Code and applicable treasury regulations. The deduction otherwise	2654
allowed under division (S)(9)(a) of this section shall be reduced	2655
to the extent the reimbursement is attributable to an amount the	2656
taxpayer or decedent deducted under this section in any taxable	2657
year.	2658

(b) Add any amount not otherwise included in Ohio taxable	2659
income for any taxable year to the extent that the amount is	2660
attributable to the recovery during the taxable year of any amount	2661
deducted or excluded in computing federal or Ohio taxable income	2662
in any taxable year.	2663

(10) Deduct any portion of the deduction described in	2664
section 1341(a)(2) of the Internal Revenue Code, for repaying	2665
previously reported income received under a claim of right, that	2666
meets both of the following requirements:	2667

(a) It is allowable for repayment of an item that was	2668
included in the taxpayer's taxable income or the decedent's	2669
adjusted gross income for a prior taxable year and did not qualify	2670
for a credit under division (A) or (B) of section 5747.05 of the	2671
Revised Code for that year.	2672

(b) It does not otherwise reduce the taxpayer's taxable	2673
income or the decedent's adjusted gross income for the current or	2674
any other taxable year.	2675

(11) Add any amount claimed as a credit under section	2676
5747.059 of the Revised Code to the extent that the amount	2677
satisfies either of the following:	2678

(a) The amount was deducted or excluded from the computation	2679
of the taxpayer's federal taxable income as required to be	2680
reported for the taxpayer's taxable year under the Internal	2681
Revenue Code;	2682

(b) The amount resulted in a reduction in the taxpayer's	2683
federal taxable income as required to be reported for any of the	2684
taxpayer's taxable years under the Internal Revenue Code.	2685

(12) Deduct any amount that a trust is required to report as	2686
farm income on its federal income tax return, but only if the	2687
assets of the trust include at least ten acres of land satisfying	2688
the definition of "land devoted exclusively to agricultural use"	2689
under section 5713.30 of the Revised Code, regardless of whether	2690
the land is valued for tax purposes as such land under sections	2691
5713.30 to 5713.38 of the Revised Code. Division (S)(12) of this	2692
section applies only to taxable years of a trust beginning in	2693
2002, 2003, or 2004.	2694

(13) Add the net amount of income described in section 641(c)	2695
of the Internal Revenue Code to the extent that amount is not	2696
included in federal taxable income.	2697

(T) "School district income" and "school district income	2698
tax" have the same meanings as in section 5748.01 of the Revised	2699
Code.	2700

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	2701
of this section, "public obligations," "purchase obligations," and	2702
"interest or interest equivalent" have the same meanings as in	2703
section 5709.76 of the Revised Code.	2704

(V) "Limited liability company" means any limited liability	2705
company formed under Chapter 1705. of the Revised Code or under	2706
the laws of any other state.	2707

(W) "Pass-through entity investor" means any person who,	2708
during any portion of a taxable year of a pass-through entity, is	2709
a partner, member, shareholder, or investor in that pass-through	2710
entity.	2711

(X) "Banking day" has the same meaning as in section 1304.01	2712
of the Revised Code.	2713

(Y) "Month" means a calendar month.

2714

(Z) "Quarter" means the first three months, the second three	2715
months, the third three months, or the last three months of the	2716
taxpayer's taxable year.	2717

(AA)(1) "Eligible institution" means a state university or	2718
state institution of higher education as defined in section	2719
3345.011 of the Revised Code, or a private, nonprofit college,	2720
university, or other post-secondary institution located in this	2721
state that possesses a certificate of authorization issued by the	2722
Ohio board of regents pursuant to Chapter 1713. of the Revised	2723
Code or a certificate of registration issued by the state board of	2724
proprietary school registration under Chapter 3332. of the Revised	2725
Code.	2726

(2) "Qualified tuition and fees" means tuition and fees	2727
imposed by an eligible institution as a condition of enrollment or	2728
attendance, not exceeding two thousand five hundred dollars in	2729
each of the individual's first two years of post-secondary	2730
education. If the individual is a part-time student, "qualified	2731
tuition and fees" includes tuition and fees paid for the academic	2732
equivalent of the first two years of post-secondary education	2733
during a maximum of five taxable years, not exceeding a total of	2734
five thousand dollars. "Qualified tuition and fees" does not	2735
include:	2736

(a) Expenses for any course or activity involving sports,	2737
games, or hobbies unless the course or activity is part of the	2738
individual's degree or diploma program;	2739

(b) The cost of books, room and board, student activity	2740
fees, athletic fees, insurance expenses, or other expenses	2741
unrelated to the individual's academic course of instruction;	2742

(c) Tuition, fees, or other expenses paid or reimbursed	2743
through an employer, scholarship, grant in aid, or other	2744
educational benefit program.	2745

(BB)(1) "Modified business income" means the business income	2746
included in a trust's taxable income after such taxable income is	2747
first reduced by the qualifying amount, if any.	2748

(2) "Qualifying amount" of a trust means capital gains and	2749
losses from the sale, exchange, or other disposition of equity or	2750
ownership interest in, or debt obligations of, a qualifying	2751
investee to the extent included in the trust's taxable income, but	2752
only if the location of the physical assets of the qualifying	2753
investee is available to the trust.	2754

(3) "Modified nonbusiness income" means a trust's taxable	2755
income other than modified business income and other than the	2756
qualifying amount.	2757

(4) "Modified taxable income" applies only to trusts and	2758
means the sum of the following:	2759

(a) Modified business income multiplied by the fraction	2760
calculated under division (B)(2) of section 5733.05, and applying	2761
section 5733.057 of the Revised Code, as if the trust were a	2762
corporation subject to the tax imposed by section 5733.06 of the	2763
Revised Code;	2764

(b) The qualifying amount multiplied by the ratio of the	2765
book value of the physical assets in this state of the qualifying	2766
investee to the book value of the total physical assets everywhere	2767
of the qualifying investee;	2768

(c) Modified nonbusiness income to the extent produced by	2769
assets held by a trust or portion of a trust that is a resident	2770
for the purposes of this chapter.	2771

If the allocation and apportionment of a trust's income	2772
under divisions (BB)(4)(a) and (c) of this section do not fairly	2773
represent the modified taxable income of the trust in this state,	2774
the alternative methods described in division (C) of section	2775
5747.21 of the Revised Code may be applied in the manner and to	2776
the same extent provided in that section.	2777

(5) "Qualifying investee" means a person in which a trust	2778
has an equity or ownership interest, or a person or unit of	2779
government the debt obligations of either of which are owned by a	2780
trust.	2781

(CC) Any term used in this chapter that is not otherwise	2782
defined in this section and that is not used in a comparable	2783
context in the Internal Revenue Code and other statutes of the	2784
United States relating to federal income taxes has the same	2785
meaning as in section 5733.40 of the Revised Code.	2786

Sec. 5747.02. (A) For the purpose of providing revenue for	2787
the support of schools and local government functions, to provide	2788
relief to property taxpayers, to provide revenue for the general	2789
revenue fund, and to meet the expenses of administering the tax	2790
levied by this chapter, there is hereby levied on every	2791
individual, trust, and ~~every~~ estate residing in or earning or	2792
receiving income in this state, on every individual, trust, and	2793
estate earning or receiving lottery winnings, prizes, or awards	2794
pursuant to Chapter 3770. of the Revised Code, and on every	2795
individual, trust, and estate otherwise having nexus with or in	2796
this state under the Constitution of the United States, an annual	2797
tax measured in the case of individuals by adjusted gross income	2798
less an exemption for the taxpayer, the taxpayer's spouse, and	2799
each dependent as provided in section 5747.025 of the Revised	2800
Code,; measured in the case of trusts by modified taxable income	2801
under division (D) of this section; and measured in the case of	2802
estates by taxable income. The tax imposed by this section on the	2803
balance thus obtained is hereby levied as follows:	2804

ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		2805
OR		2806
MODIFIED		2807
TAXABLE INCOME (TRUSTS)		2808
OR		2809
TAXABLE INCOME (ESTATES)	TAX	2810

$5,000 or less	.743%	2811
More than $5,000 but not more than $10,000	$37.15 plus 1.486% of the amount in excess of $5,000	2812
More than $10,000 but not more than $15,000	$111.45 plus 2.972% of the amount in excess of $10,000	2813
More than $15,000 but not more than $20,000	$260.05 plus 3.715% of the amount in excess of $15,000	2814
More than $20,000 but not more than $40,000	$445.80 plus 4.457% of the amount in excess of $20,000	2815
More than $40,000 but not more than $80,000	$1,337.20 plus 5.201% of the amount in excess of $40,000	2816
More than $80,000 but not more than $100,000	$3,417.60 plus 5.943% of the amount in excess of $80,000	2817
More than $100,000 but not more than $200,000	$4,606.20 plus 6.9% of the amount in excess of $100,000	2818
More than $200,000	$11,506.20 plus 7.5% of the amount in excess of $200,000	2819

In July of each year, beginning in 2005, the tax commissioner	2820
shall adjust the income amounts prescribed in this division by	2821
multiplying the percentage increase in the gross domestic product	2822
deflator computed that year under section 5747.025 of the Revised	2823
Code by each of the income amounts resulting from the adjustment	2824
under this division in the preceding year, adding the resulting	2825
product to the corresponding income amount resulting from the	2826
adjustment in the preceding year, and rounding the resulting sum	2827
to the nearest multiple of fifty dollars. The tax commissioner	2828
also shall recompute each of the tax dollar amounts to the extent	2829
necessary to reflect the adjustment of the income amounts. The	2830
rates of taxation shall not be adjusted.	2831

The adjusted amounts apply to taxable years beginning in the	2832
calendar year in which the adjustments are made. The tax	2833
commissioner shall not make such adjustments in any year in which	2834
the amount resulting from the adjustment would be less than the	2835
amount resulting from the adjustment in the preceding year.	2836

(B) If the director of budget and management makes a	2837
certification to the tax commissioner under division (B) of	2838
section 131.44 of the Revised Code, the amount of tax as	2839
determined under division (A) of this section shall be reduced by	2840
the percentage prescribed in that certification for taxable years	2841
beginning in the calendar year in which that certification is	2842
made.	2843

(C) The levy of this tax on income does not prevent a	2844
municipal corporation, a joint economic development zone created	2845
under section 715.691, or a joint economic development district	2846
created under section 715.70 or 715.71 or sections 715.72 to	2847
715.81 of the Revised Code from levying a tax on income.	2848

(D) Division (D) of this section applies only to taxable	2849
years of a trust beginning in 2002, 2003, or 2004.	2850

The tax imposed by this section on a trust shall be computed	2851
by multiplying the modified taxable income of the trust by the	2852
rates prescribed by division (A) of this section.	2853

A credit is allowed against the tax computed under division	2854
(D) of this section equal to the lesser of (1) the tax paid to	2855
another state or the District of Columbia on modified nonbusiness	2856
income of a trust, or (2) the effective tax rate, based on	2857
modified taxable income, multiplied by the modified nonbusiness	2858
income of the trust. The credit applies before any other	2859
applicable credits. The credits enumerated in divisions (A)(1) to	2860
(13) of section 5747.98 of the Revised Code do not apply to a	2861
trust subject to this division.	2862

(E) For the purposes of this section, "trust" means any	2863
trust described in Subchapter J of the Internal Revenue Code,	2864
excluding a trust exempted from taxation under section 501(c)(3)	2865
of Internal Revenue Code.	2866

Sec. 5747.05. As used in this section, "income tax" includes	2867
both a tax on net income and a tax measured by net income.	2868

The following credits shall be allowed against the income tax	2869
imposed by section 5747.02 of the Revised Code on individuals and	2870
estates:	2871

(A)(1) The amount of tax otherwise due under section 5747.02	2872
of the Revised Code on such portion of the adjusted gross income	2873
of any nonresident taxpayer that is not allocable to this state	2874
pursuant to sections 5747.20 to 5747.23 of the Revised Code;	2875

(2) The credit provided under this division shall not exceed	2876
the portion of the total tax due under section 5747.02 of the	2877
Revised Code that the amount of the nonresident taxpayer's	2878
adjusted gross income not allocated to this state pursuant to	2879
sections 5747.20 to 5747.23 of the Revised Code bears to the total	2880
adjusted gross income of the nonresident taxpayer derived from all	2881
sources everywhere.	2882

(3) The tax commissioner may enter into an agreement with	2883
the taxing authorities of any state or of the District of Columbia	2884
that imposes an income tax to provide that compensation paid in	2885
this state to a nonresident taxpayer shall not be subject to the	2886
tax levied in section 5747.02 of the Revised Code so long as	2887
compensation paid in such other state or in the District of	2888
Columbia to a resident taxpayer shall likewise not be subject to	2889
the income tax of such other state or of the District of Columbia.	2890

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

2891

(1) The amount of tax otherwise due under section 5747.02 of	2892
the Revised Code on such portion of the adjusted gross income of a	2893
resident taxpayer that in another state or in the District of	2894
Columbia is subjected to an income tax. The credit provided under	2895
division (B)(1) of this section shall not exceed the portion of	2896
the total tax due under section 5747.02 of the Revised Code that	2897
the amount of the resident taxpayer's adjusted gross income	2898
subjected to an income tax in the other state or in the District	2899
of Columbia bears to the total adjusted gross income of the	2900
resident taxpayer derived from all sources everywhere.	2901

(2) The amount of income tax liability to another state or	2902
the District of Columbia on the portion of the adjusted gross	2903
income of a resident taxpayer that in another state or in the	2904
District of Columbia is subjected to an income tax. The credit	2905
provided under division (B)(2) of this section shall not exceed	2906
the amount of tax otherwise due under section 5747.02 of the	2907
Revised Code.	2908

(3) If the credit provided under division (B) of this	2909
section is affected by a change in either the portion of adjusted	2910
gross income of a resident taxpayer subjected to an income tax in	2911
another state or the District of Columbia or the amount of income	2912
tax liability that has been paid to another state or the District	2913
of Columbia, the taxpayer shall report the change to the tax	2914
commissioner within sixty days of the change in such form as the	2915
commissioner requires.	2916

(a) In the case of an underpayment, the report shall be	2917
accompanied by payment of any additional tax due as a result of	2918
the reduction in credit together with interest on the additional	2919
tax and is a return subject to assessment under section 5747.13 of	2920
the Revised Code solely for the purpose of assessing any	2921
additional tax due under this division, together with any	2922
applicable penalty and interest. It shall not reopen the	2923
computation of the taxpayer's tax liability under this chapter	2924
from a previously filed return no longer subject to assessment	2925
except to the extent that such liability is affected by an	2926
adjustment to the credit allowed by division (B) of this section.	2927

(b) In the case of an overpayment, an application for refund	2928
may be filed under this division within the sixty day period	2929
prescribed for filing the report even if it is beyond the period	2930
prescribed in section 5747.11 of the Revised Code if it otherwise	2931
conforms to the requirements of such section. An application	2932
filed under this division shall only claim refund of overpayments	2933
resulting from an adjustment to the credit allowed by division (B)	2934
of this section unless it is also filed within the time prescribed	2935
in section 5747.11 of the Revised Code. It shall not reopen the	2936
computation of the taxpayer's tax liability except to the extent	2937
that such liability is affected by an adjustment to the credit	2938
allowed by division (B) of this section.	2939

(C) For a taxpayer sixty-five years of age or older during	2940
the taxable year, a credit for such year equal to fifty dollars	2941
for each return required to be filed under section 5747.08 of the	2942
Revised Code.	2943

(D) A taxpayer sixty-five years of age or older during the	2944
taxable year who has received a lump-sum distribution from a	2945
pension, retirement, or profit-sharing plan in the taxable year	2946
may elect to receive a credit under this division in lieu of the	2947
credit to which hethe taxpayer is entitled under division (C) of	2948
this section. A taxpayer making such election shall receive a	2949
credit for the taxable year equal to fifty dollars times the	2950
taxpayer's expected remaining life as shown by annuity tables	2951
issued under the provisions of the Internal Revenue Code and in	2952
effect for the calendar year which includes the last day of the	2953
taxable year. A taxpayer making an election under this division	2954
is not entitled to the credit authorized under division (C) of	2955
this section in subsequent taxable years except that if such	2956
election was made prior to July 1, 1983, the taxpayer is entitled	2957
to one-half the credit authorized under such division in	2958
subsequent taxable years but may not make another election under	2959
this division.	2960

(E) A taxpayer who is not sixty-five years of age or older	2961
during the taxable year who has received a lump-sum distribution	2962
from a pension, retirement, or profit-sharing plan in a taxable	2963
year ending on or before July 31, 1991, may elect to take a credit	2964
against the tax otherwise due under this chapter for such year	2965
equal to fifty dollars times the expected remaining life of a	2966
taxpayer sixty-five years of age as shown by annuity tables issued	2967
under the provisions of the Internal Revenue Code and in effect	2968
for the calendar year which includes the last day of the taxable	2969
year. A taxpayer making an election under this division is not	2970
entitled to a credit under division (C) or (D) of this section in	2971
any subsequent year except that if such election was made prior to	2972
July 1, 1983, the taxpayer is entitled to one-half the credit	2973
authorized under division (C) of this section in subsequent years	2974
but may not make another election under this division. No	2975
taxpayer may make an election under this division for a taxable	2976
year ending on or after August 1, 1991.	2977

(F) A taxpayer making an election under either division (D)	2978
or (E) of this section may make only one such election in the	2979
taxpayer's lifetime.	2980

(G)(1) On a joint return filed by a husband and wife, each	2981
of whom had adjusted gross income of at least five hundred	2982
dollars, exclusive of interest, dividends and distributions,	2983
royalties, rent, and capital gains, a credit equal to the	2984
percentage shown in the table contained in this division of the	2985
amount of tax due after allowing for any other credit that	2986
precedes the credit under this division in the order required	2987
under section 5747.98 of the Revised Code.	2988

(2) The credit to which a taxpayer is entitled under this	2989
division in any taxable year is the percentage shown in column B	2990
that corresponds with the taxpayer's adjusted gross income, less	2991
exemptions for the taxable year:	2992

2993

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

THE CREDIT FOR THE TAXABLE YEAR IS:

2994

$25,000 or less	20%	2995
More than $25,000 but not more than $50,000	15%	2996
More than $50,000 but not more than $75,000	10%	2997
More than $75,000	5%	2998

(3) The credit allowed under this division shall not exceed	2999
six hundred fifty dollars in any taxable year.	3000

(H) No claim for credit under this section shall be allowed	3001
unless the claimant furnishes such supporting information as the	3002
tax commissioner prescribes by rules. Each credit under this	3003
section shall be claimed in the order required under section	3004
5747.98 of the Revised Code.	3005

(I) An individual who is a resident for part of a taxable	3006
year and a nonresident for the remainder of the taxable year is	3007
allowed the credits under divisions (A) and (B) of this section in	3008
accordance with rules prescribed by the tax commissioner. In no	3009
event shall the same income be subject to both credits.	3010

(J) The credit allowed under division (A) of this section	3011
shall be calculated based upon the amount of tax due under section	3012
5747.02 of the Revised Code after subtracting any other credits	3013
that precede the credit under that division in the order required	3014
under section 5747.98 of the Revised Code. The credit allowed	3015
under division (B) of this section shall be calculated based upon	3016
the amount of tax due under section 5747.02 of the Revised Code	3017
after subtracting any other credits that precede the credit under	3018
that division in the order required under section 5747.98 of the	3019
Revised Code.	3020

(K) No credit shall be allowed under division (B) of this	3021
section unless the taxpayer furnishes such proof as the tax	3022
commissioner shall require that the income tax liability has been	3023
paid to another state or the District of Columbia.	3024

(L) No credit shall be allowed under division (B) of this	3025
section for compensation that is not subject to the income tax of	3026
another state or the District of Columbia as the result of an	3027
agreement entered into by the tax commissioner under division	3028
(A)(3) of this section.	3029

Sec. 5747.21. (A) This section applies solely for the	3030
purposes of computing the credit allowed under division (A) of	3031
section 5747.05 of the Revised Code, computing income taxable in	3032
this state under division (D) of section 5747.08 of the Revised	3033
Code, and computing the credit allowed under section 5747.057 of	3034
the Revised Code. ~~Except~~	3035

(B) Except as otherwise provided under ~~section~~sections	3036
5747.211 and 5747.212 of the Revised Code, all items of business	3037
income and business deduction shall be apportioned to this state	3038
by multiplying the adjusted gross income by the fraction	3039
calculated under division (B)(2) of section 5733.05 and section	3040
5733.057 of the Revised Code as if the taxpayer's business were a	3041
corporation subject to the tax imposed by section 5733.06 of the	3042
Revised Code.	3043

(C) If the allocation and apportionment provisions of	3044
sections 5747.20 to 5747.23 of the Revised Code or of any rule	3045
adopted by the tax commissioner, do not fairly represent the	3046
extent of business activity in this state of a taxpayer or	3047
pass-through entity, the taxpayer or pass-through entity may	3048
request, which request must be in writing accompanying the return	3049
or amended return, or the tax commissioner may require, in respect	3050
of all or any part of the business activity, if reasonable, any	3051
one or more of the following:	3052

(1) Separate accounting;

3053

(2) The exclusion of one or more factors;

3054

(3) The inclusion of one or more additional factors which	3055
will fairly represent the business activity in this state;	3056

(4) The employment of any other method to effectuate an	3057
equitable allocation of such business in this state. An	3058
alternative method will be effective only with approval of the tax	3059
commissioner.	3060

The tax commissioner may adopt rules in the manner provided	3061
by sections 5703.14 and 5747.18 of the Revised Code providing for	3062
alternative methods of calculating business income and nonbusiness	3063
income applicable to all taxpayers and pass-through entities, to	3064
classes of taxpayers and pass-through entities, or only to	3065
taxpayers and pass-through entities within a certain industry.	3066

Sec. 5747.212. This section applies solely for the purpose	3067
of computing the credit allowed under division (A) of section	3068
5747.05 of the Revised Code, computing income taxable in this	3069
state under division (D) of section 5747.08 of the Revised Code,	3070
and computing the credit allowed under section 5747.057 of the	3071
Revised Code.	3072

A pass-through entity investor that owns, directly or	3073
indirectly, at least twenty per cent of the pass-through entity at	3074
any time during the current taxable year or either of the two	3075
preceding taxable years shall apportion any income, including gain	3076
or loss, realized from the sale, exchange, or other disposition of	3077
a debt or equity interest in the entity as prescribed in this	3078
section. For such purposes, in lieu of using the method	3079
prescribed by sections 5747.20 and 5747.21 of the Revised Code,	3080
the investor shall apportion the income using the average of the	3081
pass-through entity's apportionment fractions otherwise applicable	3082
under section 5747.21 of the Revised Code for the current and two	3083
preceding taxable years. If the pass-through entity was not in	3084
business for one or more of those years, each year that the entity	3085
was not in business shall be excluded in determining the average.	3086

Sec. 5901.02. In each county there shall be a commission	3087
known as "the veterans service commission." Except as provided in	3088
section 5901.021 of the Revised Code, the commission shall be	3089
composed of five ~~persons. Those persons shall be~~ residents of the	3090
county ~~and shall be~~ appointed to five-year terms by a judge of the	3091
court of common pleas. At the time of appointment or	3092
reappointment to the commission, no commission member appointed	3093
under this section shall be an employee of the commission or hold	3094
an elective or other appointive office of the county served by the	3095
commission.	3096

Each member of the commission appointed under this section	3097
shall be an honorably discharged or honorably separated veteran.	3098
Within sixty days after the date of appointment, each such member	3099
~~of the commission~~ shall file the member's form DD214 with the	3100
governor's office of veterans affairs in accordance with	3101
guidelines established by the director of that office.	3102
~~Appointments to the commission~~Such appointments shall be made	3103
from lists of recommended persons, in the manner specified in the	3104
following paragraph. One person shall be a representative	3105
recommended by the American Legion; one person shall be a	3106
representative recommended by the Veterans of Foreign Wars; one	3107
person shall be a representative recommended by the Disabled	3108
American Veterans; one person shall be a representative	3109
recommended by the AMVETS; and one person shall be a	3110
representative recommended by the Military Order of the Purple	3111
Heart of the U.S.A., the Vietnam Veterans of America, or the	3112
Korean War Veterans Association. If any such organization has no	3113
post or chapter located in the county, the appointment shall be	3114
made from lists of recommended persons submitted by posts or	3115
chapters of any other congressionally chartered veterans	3116
organizations located in the county. If no such other	3117
organizations have posts or chapters located in the county, the	3118
judge ~~described in the following paragraph~~responsible for making	3119
appointments under this section may appoint any qualified veteran	3120
to represent the veteran community.	3121

On or before the fifteenth day of October of each year, the	3122
appointing judge ~~of the court of common pleas who is responsible~~	3123
~~for making appointments to the commission~~ shall notify each post	3124
or chapter of each organization within the county from which the	3125
member may or must be appointed that it may submit a list	3126
containing three recommendations of persons who are eligible for	3127
appointment. If the judge does not receive any recommendations	3128
within sixty days after providing the required notification, the	3129
judge may appoint any qualified veteran to represent the veteran	3130
community. The judge shall make the appointment on or before the	3131
fifteenth day of January of each year. ~~Vacancies occurring on the~~	3132
~~commission~~Any vacancy in a membership appointed under this	3133
section shall be filled in the same manner as the original	3134
appointments.	3135

Beginning in the year 2000, ~~appointments~~appointment of	3136
members to the commission under this section shall be made as	3137
follows:	3138

(A) Appointments for members to represent the American	3139
Legion shall be made for terms to commence in years ending in zero	3140
and five.	3141

(B) Appointments for members to represent the Veterans of	3142
Foreign Wars shall be made for terms to commence in years ending	3143
in one and six.	3144

(C) Appointments for members to represent the Disabled	3145
American Veterans shall be made for terms to commence in years	3146
ending in two and seven.	3147

(D) Appointments for members to represent the AMVETS shall	3148
be made for terms to commence in years ending in three and eight.	3149

(E) Appointments for members to represent the Military Order	3150
of the Purple Heart of the U.S.A., the Vietnam Veterans of	3151
America, or the Korean War Veterans Association shall be made for	3152
terms to commence in years ending in four and nine.	3153

The terms immediately preceding the initial appointments made	3154
under divisions (A) to (E) of this section may be for periods of	3155
less than five years.	3156

Sec. 5901.021. This section applies only to counties having a	3157
population, according to the most recent decennial census, of more	3158
than four hundred thousand. In any such county in which the	3159
veterans service commission submits a budget request under section	3160
5901.11 of the Revised Code for the ensuing fiscal year that	3161
exceeds (1) twenty-five-thousandths of one per cent of the	3162
assessed value of property in the county or (2) the amount	3163
appropriated to the commission from the county general fund in the	3164
current fiscal year by more than ten per cent of that	3165
appropriation, the board of county commissioners, by resolution,	3166
may create not more than six memberships on the veterans service	3167
commission in addition to the memberships provided for by section	3168
5901.02 of the Revised Code. The board shall prescribe the number	3169
of years such memberships shall exist, which shall not exceed five	3170
years. Once a board of county commissioners creates such	3171
memberships, it may not create additional memberships under this	3172
section if the total number of such memberships would exceed six.	3173
The board shall appoint residents of the county to each of the	3174
additional memberships for terms prescribed by the board and	3175
commencing on a date fixed by the board.	3176

If the board of county commissioners appoints such additional	3177
members, the board may permit the commission to submit an original	3178
or revised budget request for the ensuing fiscal year later than	3179
the last Monday in May, as otherwise required under section	3180
5901.11 of the Revised Code.	3181

The board of county commissioners may remove, for cause, any	3182
member appointed under this section; shall provide for whether	3183
such members may be reappointed upon the expiration of their	3184
terms; and shall fill any vacancy in a membership appointed under	3185
this section for the unexpired term in the manner provided for the	3186
original appointment.	3187

Sec. 5901.03. The veterans service commission shall select	3188
one of its members as president, one as vice-president, and one as	3189
secretary. The commission shall meet at least once each month. A	3190
judge of the court of common pleas may remove, for cause, any	3191
member of the commission ~~for cause~~appointed under section 5901.02	3192
of the Revised Code, and shall fill vacancies ~~occuring on the~~	3193
~~commission~~occurring among memberships appointed under that	3194
section for the unexpired terms, in the manner provided ~~in section~~	3195
~~5901.02 of the Revised Code~~for the original appointments.	3196

The commission's duties shall include but are not limited to	3197
the following:	3198

(A) Employing such staff as are necessary to carry out the	3199
commission's duties, and fixing their compensation;	3200

(B) Establishing policies and procedures for the	3201
administration of the commission and the veterans service office;	3202

(C) Establishing policies and procedures for the	3203
administration of assistance as provided under this chapter;	3204

(D) Causing the budgets of the veterans service commission	3205
and veterans service office to be presented to the board of county	3206
commissioners for approval;	3207

(E) Establishing programs of outreach and coordination with	3208
other agencies to enhance available services to veterans within	3209
the county;	3210

(F) Promoting, monitoring, and providing funding for ongoing	3211
education and training for veterans service commissioners and	3212
staff;	3213

(G) Making reports to the organizations represented on the	3214
commission, as provided in section 5901.02 of the Revised Code,	3215
and to others, upon request;	3216

(H) Establishing regularly scheduled transportation for	3217
veterans to and from veterans administration medical centers whose	3218
districts the county is within, through contractual agreements or	3219
through other arrangements determined by the commission to be most	3220
cost-effective;	3221

(I) Participating in appropriate memorial and commemorative	3222
activities to help promote patriotism and veterans services;	3223

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

3224

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

3225

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

3226

(a) Fall term, which consists of fall semester or fall	3227
quarter, as appropriate;	3228

(b) Winter term, which consists of winter semester, winter	3229
quarter, or spring semester, as appropriate;	3230

3231

(d) Summer term, which consists of summer semester or summer	3232
quarter, as appropriate.	3233

(2) "Eligible applicant" means any individual to whom all of	3234
the following apply:	3235

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

3236

(b) The individual has enlisted, re-enlisted, or extended	3237
current enlistment in the Ohio national guard or is an individual	3238
to which division (F) of this section applies.	3239

(c) The individual is actively enrolled as a full-time or	3240
part-time student for at least six credit hours of course work in	3241
a semester or quarter in a two-year or four-year degree-granting	3242
program at an institution of higher education or in a	3243
diploma-granting program at an institution of higher education	3244
that is a school of nursing.	3245

(d) The individual has not accumulated ninety-six	3246
eligibility units under division (E) of this section.	3247

(3) "Institution of higher education" means an Ohio	3248
institution of higher education that is state-assisted, that is	3249
nonprofit and has received a certificate of authorization from the	3250
Ohio board of regents pursuant to Chapter 1713. of the Revised	3251
Code, that is a private institution exempt from regulation under	3252
Chapter 3332. of the Revised Code as prescribed in section	3253
3333.046 of the Revised Code, or that holds a certificate of	3254
registration and program authorization issued by the state board	3255
of proprietary school registration pursuant to section 3332.05 of	3256
the Revised Code.	3257

(4) "State university" has the same meaning as in section	3258
3345.011 of the Revised Code.	3259

(B)(1) There is hereby created a scholarship program to be	3260
known as the Ohio national guard scholarship program. For the	3261
fiscal year 2000, the number of participants in the program for	3262
the fall term is limited to the equivalent of two thousand five	3263
hundred full-time participants; the number of participants in the	3264
program for the winter term is limited to the equivalent of two	3265
thousand five hundred full-time participants; the number of	3266
participants in the program for the spring term is limited to the	3267
equivalent of one thousand six hundred seventy-five full-time	3268
participants; and the number of participants in the program for	3269
the summer term is limited to the equivalent of six hundred	3270
full-time participants. Except as provided in division (B)(2) of	3271
this section for the fiscal year 2001 and succeeding fiscal years,	3272
the number of participants in the program for the fall term is	3273
limited to the equivalent of three thousand five hundred full-time	3274
participants; the number of participants in the program for the	3275
winter term is limited to the equivalent of three thousand five	3276
hundred full-time participants; the number of participants in the	3277
program for the spring term is limited to the equivalent of two	3278
thousand three hundred forty-five full-time participants; and the	3279
number of participants in the program for the summer term is	3280
limited to the equivalent of eight hundred full-time participants.	3281

(2) After the application deadline for any academic term in	3282
fiscal year 2001, the adjutant general may request the controlling	3283
board, if sufficient appropriated funds are available, to approve	3284
the following number of additional participants for that term:	3285

(a) For the fall or winter academic term, up to the	3286
equivalent of five hundred additional full-time participants;	3287

(b) For the spring academic term, up to the equivalent of	3288
three hundred seventy-five additional full-time participants;	3289

(c) For the summer academic term, up to the equivalent of	3290
one hundred twenty-five additional full-time participants.	3291

(C) If the adjutant general estimates that appropriations	3292
for all scholarships applied for under this section and likely to	3293
be used during an academic term are inadequate for all eligible	3294
applicants for that academic term to receive scholarships, the	3295
adjutant general shall promptly inform all applicants not	3296
receiving scholarships for that academic term of the next academic	3297
term that appropriations will be adequate for the scholarships.	3298
Any such eligible applicant may again apply for a scholarship	3299
beginning that academic term if the applicant is in compliance	3300
with all requirements established by this section and the adjutant	3301
general for the program. The adjutant general shall process all	3302
applications for scholarships for each academic term in the order	3303
in which they are received. The scholarships shall be made	3304
without regard to financial need. At no time shall one person be	3305
placed in priority over another because of sex, race, or religion.	3306

(D)(1) Except as provided in division ~~(H)~~(I) of this	3307
section, for each academic term that an eligible applicant is	3308
approved for a scholarship under this section and either remains a	3309
current member in good standing of the Ohio national guard or is	3310
eligible for a scholarship under division (F)(1) of this section,	3311
the institution of higher education in which the applicant is	3312
enrolled shall, if the applicant's enlistment obligation extends	3313
beyond the end of that academic term or if division (F)(1) of this	3314
section applies, be paid on the applicant's behalf the applicable	3315
one of the following amounts:	3316

~~(1)~~(a) If the institution is state-assisted, an amount equal	3317
to one hundred per cent of the institution's tuition charges;	3318

~~(2)~~(b) If the institution is a nonprofit private institution	3319
or a private institution exempt from regulation under Chapter	3320
3332. of the Revised Code as prescribed in section 3333.046 of the	3321
Revised Code, an amount equal to one hundred per cent of the	3322
average tuition charges of all state universities;	3323

~~(3)~~(c) If the institution is an institution that holds a	3324
certificate of registration from the state board of proprietary	3325
school registration, the lesser of the following:	3326

~~(a)~~(i) An amount equal to one hundred per cent of the total	3327
instructional and general charges of the institution;	3328

~~(b)~~(ii) An amount equal to one hundred per cent of the	3329
average tuition charges of all state universities.	3330

~~(4)~~(2) An eligible applicant's scholarship shall not be	3331
reduced by the amount of that applicant's benefits under "the	3332
Montgomery G.I. Bill Act of 1984," Pub. L. No. 98-525, 98 Stat.	3333
2553 (1984).	3334

(E) A scholarship recipient under this section shall be	3335
entitled to receive scholarships under this section for the number	3336
of quarters or semesters it takes the recipient to accumulate	3337
ninety-six eligibility units as determined under divisions (E)(1)	3338
to (3) of this section.	3339

(1) To determine the maximum number of semesters or quarters	3340
for which a recipient is entitled to a scholarship under this	3341
section, the adjutant general shall convert a recipient's credit	3342
hours of enrollment for each academic term into eligibility units	3343
in accordance with the following table:	3344

Number of		The following		The following	3345
credit hours		number of		number of	3346
of enrollment		eligibility		eligibility	3347
in an academic		units if a		units if a	3348
term	equals	semester	or	quarter	3349
12 or more hours		12 units		8 units	3350
9 but less than 12		9 units		6 units	3351
6 but less than 9		6 units		4 units	3352

(2) A scholarship recipient under this section may continue	3353
to apply for scholarships under this section until the recipient	3354
has accumulated ninety-six eligibility units.	3355

(3) If a scholarship recipient withdraws from courses prior	3356
to the end of an academic term so that the recipient's enrollment	3357
for that academic term is less than six credit hours, no	3358
scholarship shall be paid on behalf of that person for that	3359
academic term ~~except that~~. Except as provided in division (F)(3)	3360
of this section, if a scholarship has already been paid on behalf	3361
of the person for that academic term, the adjutant general shall	3362
add to that person's accumulated eligibility units the number of	3363
eligibility units for which the scholarship was paid.	3364

(F) This division applies to any eligible applicant called	3365
into active duty on or after September 11, 2001. As used in this	3366
division, "active duty" means active duty pursuant to an executive	3367
order of the president of the United States, an act of the	3368
congress of the United States, or section 5919.29 or 5923.21 of	3369
the Revised Code.	3370

(1) An individual to whom this division applies is eligible	3371
for scholarships under this section for those academic terms that	3372
were missed or could have been missed as a result of the	3373
individual's call into active duty. Scholarships shall not be	3374
paid for the academic term in which an eligible applicant's	3375
enlistment obligation ends unless an applicant is eligible under	3376
this division for a scholarship for such academic term due to	3377
previous active duty.	3378

(2) When an individual to whom this division applies	3379
withdraws or otherwise fails to complete courses, for which	3380
scholarships have been awarded under this section, because the	3381
individual was called into active duty, the institution of higher	3382
education shall grant the individual a leave of absence from the	3383
individual's education program and shall not impose any academic	3384
penalty for such withdrawal or failure to complete courses.	3385
Division (F)(2) of this section applies regardless of whether or	3386
not the scholarship amount was paid to the institution of higher	3387
education.	3388

(3) If an individual to whom this division applies	3389
withdraws or otherwise fails to complete courses because the	3390
individual was called into active duty, and if scholarships for	3391
those courses have already been paid, either:	3392

(a) The adjutant general shall not add to that person's	3393
accumulated eligibility units calculated under division (E) of	3394
this section the number of eligibility units for the academic	3395
courses or term for which the scholarship was paid and the	3396
institution of higher education shall repay the scholarship amount	3397
to the state.	3398

(b) The adjutant general shall add to that individual's	3399
accumulated eligibility units calculated under division (E) of	3400
this section the number of eligibility units for the academic	3401
courses or term for which the scholarship was paid if the	3402
institution of higher education agrees to permit the individual to	3403
complete the remainder of the academic courses in which the	3404
individual was enrolled at the time the individual was called into	3405
active duty.	3406

(G) A scholarship recipient under this section who fails	3407
to complete the term of enlistment, re-enlistment, or extension of	3408
current enlistment the recipient was serving at the time a	3409
scholarship was paid on behalf of the recipient under this section	3410
is liable to the state for repayment of a percentage of all Ohio	3411
national guard scholarships paid on behalf of the recipient under	3412
this section, plus interest at the rate of ten per cent per annum	3413
calculated from the dates the scholarships were paid. This	3414
percentage shall equal the percentage of the current term of	3415
enlistment, re-enlistment, or extension of enlistment a recipient	3416
has not completed as of the date the recipient is discharged from	3417
the Ohio national guard.	3418

The attorney general may commence a civil action on behalf of	3419
the adjutant general to recover the amount of the scholarships and	3420
the interest provided for in this division and the expenses	3421
incurred in prosecuting the action, including court costs and	3422
reasonable attorney's fees. A scholarship recipient is not liable	3423
under this division if the recipient's failure to complete the	3424
term of enlistment being served at the time a scholarship was paid	3425
on behalf of the recipient under this section is due to the	3426
recipient's death; discharge from the national guard due to	3427
disability; or the recipient's enlistment, for a term not less	3428
than the recipient's remaining term in the national guard, in the	3429
active component of the United States armed forces or the active	3430
reserve component of the United States armed forces.	3431

~~(G)~~(H) On or before the first day of each academic term, the	3432
adjutant general shall provide an eligibility roster to each	3433
institution of higher education at which one or more scholarship	3434
recipients have applied for enrollment. The institution shall use	3435
the roster to certify the actual full-time or part-time enrollment	3436
of each scholarship recipient listed as enrolled at the	3437
institution and return the roster to the adjutant general within	3438
thirty days after the first day of the academic term. The	3439
adjutant general shall report to the Ohio board of regents the	3440
number of students in the Ohio national guard scholarship program	3441
at each institution of higher education. The Ohio board of	3442
regents shall provide for payment of the appropriate number and	3443
amount of scholarships to each institution of higher education	3444
pursuant to division (D) of this section. The adjutant general	3445
shall report on a quarterly basis to the director of budget and	3446
management, the speaker of the house of representatives, and the	3447
president of the senate the number of Ohio national guard	3448
scholarship recipients and a projection of the cost of the program	3449
for the remainder of the biennium.	3450

~~(H)~~(I) The chancellor of the Ohio board of regents and the	3451
adjutant general may adopt rules pursuant to Chapter 119. of the	3452
Revised Code governing the administration and fiscal management of	3453
the Ohio national guard scholarship program and the procedure by	3454
which the Ohio board of regents and the department of the adjutant	3455
general may modify the amount of scholarships a member receives	3456
based on the amount of other state financial aid a member	3457
receives.	3458

~~(I)~~(J) Notwithstanding division (A) of section 127.14 of the	3459
Revised Code, the controlling board shall not transfer all or part	3460
of any appropriation for the Ohio national guard scholarship	3461
program.	3462

Section 2. That existing sections 124.151, 131.44, 173.06,	3463
173.40, 1333.11, 2913.40, 3721.51, 3721.56, 5101.11, 5111.02,	3464
5111.10, 5111.86, 5111.871, 5112.01, 5112.06, 5112.07, 5112.11,	3465
5123.041, 5126.053, 5126.17, 5733.01, 5733.04, 5743.02, 5743.03,	3466
5743.04, 5743.08, 5743.081, 5743.12, 5743.13, 5743.14, 5743.32,	3467
5743.33, 5743.34, 5743.35, 5747.01, 5747.02, 5747.05, 5747.21,	3468
5901.02, 5901.03, and 5919.34 and sections 5126.16, 5126.18,	3469
5743.023, and 5743.322 of the Revised Code are hereby repealed.	3470

Section 3. (A) As used in this section, "net additional tax"	3471
means the net additional amount of tax due on all packages of Ohio	3472
stamped cigarettes and on all unaffixed Ohio cigarette tax stamps	3473
that a wholesale or retail dealer has on hand as of the beginning	3474
of business on July 1, 2002, as a result of the amendment of	3475
section 5743.02 and the repeal of section 5743.023 of the Revised	3476
Code by this act.	3477

(B) The amendment by this act of sections 5743.02, 5743.03,	3478
5743.04, 5743.08, 5743.081, 5743.12, 5743.13, 5743.14, 5743.32,	3479
5743.33, 5743.34, and 5743.35 and the repeal by this act of	3480
sections 5743.023 and 5743.322 of the Revised Code take effect	3481
July 1, 2002.	3482

(C) In addition to the return required by section 5743.03 of	3483
the Revised Code, each wholesale dealer and each retail dealer	3484
shall make and file a return on forms prescribed by the Tax	3485
Commissioner, showing the net additional tax due and any other	3486
information that the Commissioner considers necessary for the	3487
administration of sections 5743.01 to 5743.20 of the Revised Code.	3488
Not later than July 31, 2002, each wholesale dealer and each	3489
retail dealer shall deliver the return to the Treasurer of State,	3490
together with a remittance of an amount equal to one-third of the	3491
net additional tax. The Treasurer of State shall stamp or	3492
otherwise mark on the return the date it was received and also	3493
shall show on the return by stamp or otherwise the tax payment	3494
remitted with the return. The Treasurer of State immediately shall	3495
transmit all returns filed under this section to the Tax	3496
Commissioner. Not later than August 31, 2002, and also not later	3497
than September 30, 2002, each such dealer shall remit to the	3498
Treasurer of State an amount equal to one-third of the net	3499
additional tax. Any wholesale or retail dealer who fails to file a	3500
return or remit the net additional tax as prescribed by this	3501
section, for each day the dealer fails to do so, shall forfeit and	3502
pay into the state treasury, as revenue arising from the tax	3503
imposed by section 5743.02 of the Revised Code, a late charge	3504
equal to the greater of fifty dollars or ten per cent of the tax	3505
due. Any unpaid or unreported tax liability or late charge levied	3506
by this section may be collected by assessment in the manner	3507
provided in section 5743.081 or 5743.082 of the Revised Code.	3508

(D) Notwithstanding section 5743.05 of the Revised Code, for	3509
cigarette tax stamps and meter impressions sold on or after July	3510
1, 2002, and before May 1, 2003, the Treasurer of State may sell	3511
and account for such stamps and meter impressions at their face	3512
value in effect on June 30, 2002, with the remainder due within	3513
thirty days, provided that if a wholesale or retail dealer does	3514
not pay the remainder within such thirty days, the Treasurer of	3515
State shall not thereafter sell stamps or meter impressions to	3516
that dealer until the dealer pays the outstanding amount,	3517
including penalty and interest on that amount as prescribed by	3518
Chapter 5743. of the Revised Code. In cases where a dealer is	3519
permitted to purchase stamps or meter impressions on credit, the	3520
bond shall not be required to secure payment of any amount in	3521
excess of the face value of stamps or meter impressions in effect	3522
on June 30, 2002, and otherwise payable as provided in this	3523
division, provided that if the dealer defaults on the obligation	3524
to pay any amount due, the Treasurer of State shall not thereafter	3525
sell stamps or meter impressions to that dealer until the dealer	3526
pays the outstanding amount, including penalty and interest on	3527
that amount as prescribed by Chapter 5743. of the Revised Code.	3528

Section 4. (A) Notwithstanding sections 5743.02 and 5743.32	3529
of the Revised Code, as amended by this act, the rate of the tax	3530
imposed by those sections shall be thirty-four and one-half mills	3531
on each cigarette from the first day of the first month after the	3532
month in which the Director of Budget and Management makes the	3533
certification to the Tax Commissioner under division (B) of this	3534
section.	3535

(B) In the first month beginning after fiscal year 2002 in	3536
which the balance in the Budget Stabilization Fund created under	3537
section 131.43 of the Revised Code equals or exceeds five per cent	3538
of the General Revenue Fund revenues for the preceding fiscal	3539
year, the Director of Budget and Management shall certify such	3540
fact to the Tax Commissioner. The Tax Commissioner shall notify	3541
wholesale and retail dealers of the reduction in the rate of such	3542
taxes.	3543

Section 5. (A) Except as provided in division (B) of this	3544
section, the amendment or enactment by this act of sections	3545
5733.01, 5747.01, 5747.02, 5747.05, 5747.21, and 5747.212 of the	3546
Revised Code apply to taxable years ending on or after the	3547
effective date of this section.	3548

(B) To ease taxpayer compliance burdens, each taxpayer	3549
having a taxable year ending after September 10, 2001, and before	3550
the effective date of this section, may elect to apply to that	3551
taxable year the amendment by this act of section 5733.04 of the	3552
Revised Code, by the addition of divisions (I)(17) and (18) of	3553
that section, and of section 5747.01 of the Revised Code by the	3554
addition of divisions (A)(20) and (21) of that section. If the	3555
taxpayer has more than one taxable year ending during that period	3556
and makes that election, the election applies to all those taxable	3557
years. The election shall accompany or be reflected in the report	3558
or return when filed, or shall accompany or be reflected in an	3559
amended report. The election is revocable at the option of the	3560
person making the election, but no revocation is effective if it	3561
is made after the ninetieth day before the last day of the	3562
applicable period of time described in division (B) of section	3563
5733.12 or division (B) of section 5747.11 of the Revised Code, as	3564
applicable.	3565

(C) Notwithstanding division (A) of section 5747.02 of the	3566
Revised Code, as amended by this act, the adjustment of the income	3567
amounts required to be made by that amendment in 2005 shall be	3568
made by multiplying the percentage increase in the gross domestic	3569
product deflator by each of the income amounts applicable to	3570
taxable years beginning in 2004, adding the resulting product to	3571
the corresponding income amount applicable to taxable years	3572
beginning in 2004, and rounding the resulting sum to the nearest	3573
multiple of fifty dollars.	3574

Section 6. (A) The Committee to Study State and Local Taxes	3575
is hereby created. The committee shall consist of nine members.	3576
The Speaker of the House of Representatives shall appoint three	3577
members of the House of Representatives to the committee, not more	3578
than two of whom shall be from the majority party. The President	3579
of the Senate shall appoint three members of the Senate to the	3580
committee, not more than two of whom shall be from the majority	3581
party. One member shall be the Tax Commissioner, one shall be the	3582
Director of Budget and Management, and one shall be the Director	3583
of Development. Vacancies shall be filled in the same manner as	3584
original appointments. The members of the committee shall be	3585
appointed within thirty days after the effective date of this	3586
section. The members shall select a chairperson of the committee	3587
from among themselves. A majority of the committee constitutes a	3588
quorum for the conduct of official business.	3589

(B) The committee may request staff assistance from the	3590
Legislative Service Commission as well as the participating	3591
agencies. The committee may meet during periods when the General	3592
Assembly has adjourned, and may solicit and take testimony from	3593
experts on public finance and taxation as well as from interested	3594
parties. All state agencies and local governments shall comply	3595
promptly with any requests by the committee for data or other	3596
information the committee requires to properly complete its	3597
research.	3598

3599

(1) Make a study of the current state and local tax	3600
structure, including a determination of how the current tax	3601
structure affects various sectors of the economy, such as	3602
business, industry, and individuals;	3603

(2) Examine the current state and local tax structure with	3604
attention to its equity, simplicity, stability, neutrality, and	3605
competitiveness. The committee shall take ease of administration	3606
and compliance into consideration as an aspect of "simplicity."	3607
The committee shall take long term revenues into consideration as	3608
an aspect of "stability."	3609

(3) Identify aspects of the tax structure that present	3610
particular obstacles to equity, simplicity, stability, neutrality,	3611
and competitiveness;	3612

(4) Analyze who bears the ultimate tax burden with respect	3613
to any particular tax;	3614

(5) Evaluate priorities in the tax structure.

3615

(D) On or before March 1, 2003, the committee shall prepare	3616
and submit to the Governor, Speaker of the House of	3617
Representatives, and President of the Senate, and to the Minority	3618
Leaders of the House and Senate, a report summarizing the	3619
committee's review of the state and local tax structure. The	3620
report shall include recommendations for improvements in the tax	3621
structure, which recommendations shall be revenue neutral in the	3622
aggregate.	3623

Section 7. That Section 8 of Am. Sub. S.B. 172 of the 123rd	3624
General Assembly be amended to read as follows:	3625

" Sec. 8. Sections 6 and 7 of this act shall take effect	3626
July 1, ~~2002~~2003."	3627

Section 8. That existing Section 8 of Am. Sub. S.B. 172 of	3628
the 123rd General Assembly is hereby repealed.	3629

Section 9. That Section 5.02 of Sub. H.B. 73 of the 124th	3630
General Assembly, as amended by Am. Sub. H.B. 405 of the 124th	3631
General Assembly, be amended to read as follows:	3632

" Sec. 5.02. ENFORCEMENT

3633

State Highway Safety Fund Group

3634

036	764-033	Minor Capital Projects	$	2,531,302		$	1,732,358	3635
036	764-321	Operating Expense - Highway Patrol	$	185,264,130		$	195,245,402	3636
036	764-605	Motor Carrier Enforcement Expense	$	189,309		$	~~192,411~~ 2,454,232	3637
83C	764-630	Contraband, Forfeiture, Other	$	603,296		$	622,894	3638
83F	764-657	Law Enforcement Auto. Data System	$	5,050,151		$	5,277,569	3639
83G	764-633	OMVI Fines	$	781,051		$	820,927	3640
831	764-610	Patrol/Federal	$	2,210,831		$	2,336,609	3641
831	764-659	Transportation Enforcement - Federal	$	3,919,153		$	4,087,361	3642
837	764-602	Turnpike Policing	$	8,803,786		$	9,306,325	3643
838	764-606	Patrol Reimbursement	$	216,690		$	222,108	3644
840	764-607	State Fair Security	$	1,306,015		$	1,384,660	3645
840	764-617	Security and Investigations	$	4,484,313		$	4,749,103	3646
840	764-626	State Fairgrounds Police Force	$	783,175		$	829,631	3647
840	764-667	Security Assessment	$	152,324		$	160,982	3648
841	764-603	Salvage and Exchange - Highway Patrol	$	1,243,025		$	1,274,101	3649
TOTAL HSF State Highway Safety								3650
Fund Group			$	217,538,551		$	~~228,242,441~~	3651
			230,504,262		3652

General Services Fund Group

3653

4S2	764-660	MARCS Maintenance	$	241,811		$	227,222	3654
TOTAL GSF General Services								3655
Fund Group			$	241,811		$	227,222	3656
TOTAL ALL BUDGET FUND GROUPS -								3657
Enforcement			$	217,780,362		$	~~228,469,663~~	3658
			230,731,484		3659

COLLECTIVE BARGAINING INCREASES

3660

Notwithstanding division (D) of section 127.14 and division	3661
(B) of section 131.35 of the Revised Code, except for the General	3662
Revenue Fund, the Controlling Board may, upon the request of	3663
either the Director of Budget and Management, or the Department of	3664
Public Safety with the approval of the Director of Budget and	3665
Management, increase appropriations for any fund, as necessary for	3666
the Department of Public Safety, to assist in paying the costs of	3667
increases in employee compensation that have occurred pursuant to	3668
collective bargaining agreements under Chapter 4117. of the	3669
Revised Code and, for exempt employees, under section 124.152 of	3670
the Revised Code.	3671

PATROL REIMBURSEMENT FUND CASH TRANSFER

3672

On the effective date of this amendment or as soon as	3673
possible thereafter, the Director of Budget and Management shall	3674
transfer $551,150.59 in cash from the Patrol Reimbursement Fund	3675
(Fund 838) to the Turnpike Policing Fund (Fund 837). This transfer	3676
will correct an inaccurate deposit made at the end of fiscal year	3677
2001.	3678

On the effective date of this amendment or as soon as	3679
possible thereafter, the Director of Budget and Management shall	3680
transfer up to $189,309 in cash in fiscal year 2002 and shall	3681
transfer up to ~~$192,411~~$2,454,232 in cash in fiscal year 2003	3682
from the Financial Responsibility Compliance (Fund 835) to the	3683
State Highway Safety Fund (Fund 036)."	3684

Section 10. That existing Section 5.02 of Sub. H.B. 73 of the	3685
124th General Assembly, as amended by Am. Sub. H.B. 405 of the	3686
124th General Assembly, is hereby repealed.	3687

Section 11. That Sections 16, 16.02, 44, 44.19, 63.07, 63.35,	3688
75.02, 94, 94.02, 94.06, 94.07, and 125 of Am. Sub. H.B. 94 of the	3689
124th General Assembly be amended to read as follows:	3690

" Sec. 16. AGE DEPARTMENT OF AGING

3691

General Revenue Fund

3692

GRF	490-321	Operating Expenses	$	2,896,946		$	2,877,346	3693
GRF	490-403	PASSPORT	$	60,630,444		$	~~62,563,924~~ 70,363,924	3694
GRF	490-405	Golden Buckeye Card	$	377,560		$	377,560	3695
GRF	490-406	Senior Olympics	$	39,862		$	39,862	3696
GRF	490-407	Long-Term Care Consumer Guide	$	622,799		$	622,799	3697
GRF	490-409	Ohio Community Service Council Operations	$	311,640		$	311,640	3698
GRF	490-410	Long-Term Care Ombudsman	$	1,412,058		$	1,412,058	3699
GRF	490-411	Senior Community Services	$	13,784,750		$	13,784,750	3700
GRF	490-412	Residential State Supplement	$	12,534,591		$	12,290,915	3701
GRF	490-414	Alzheimers Respite	$	4,436,673		$	4,436,673	3702
GRF	490-416	Transportation For Elderly	$	183,000		$	183,000	3703
GRF	490-419	Prescription Drug Discount Program	$	0		$	177,000	3704
GRF	490-499	Senior Employment Program	$	15,574		$	15,574	3705
GRF	490-504	Senior Facilities	$	130,000		$	100,000	3706
GRF	490-506	Senior Volunteers	$	491,614		$	496,580	3707
TOTAL GRF General Revenue Fund			$	97,867,511		$	~~99,512,681~~	3708
			107,489,681		3709

General Services Fund Group

3710

480	490-606	Senior Citizens Services Special Events	$	363,587	$	372,677	3711
TOTAL GSF General Services Fund							3712
Group			$	363,587	$	372,677	3713

Federal Special Revenue Fund Group

3714

3C4	490-607	PASSPORT	$	129,645,833	$	144,875,065	3715
3M3	490-611	Federal Aging Nutrition	$	22,943,588	$	23,517,178	3716
3M4	490-612	Federal Supportive Services	$	21,025,940	$	21,545,338	3717
3R7	490-617	Ohio Community Service Council Programs	$	7,350,920	$	7,350,920	3718
322	490-618	Older Americans Support Services	$	10,873,661	$	11,144,778	3719
TOTAL FED Federal Special Revenue							3720
Fund Group			$	191,839,942	$	208,433,279	3721

State Special Revenue Fund Group

3722

4C4	490-609	Regional Long-Term Care Ombudsman Program	$	440,185		$	451,190	3723
4J4	490-610	PASSPORT/Residential State Supplement	$	24,000,000		$	24,000,000	3724
4U9	490-602	PASSPORT Fund	$	5,000,000		$	5,000,000	3725
5K9	490-613	Nursing Home Consumer Guide	$	400,000		$	400,000	3726
624	490-604	OCSC Community Support	$	2,500		$	2,500	3727
TOTAL SSR State Special Revenue								3728
Fund Group			$	29,842,685		$	29,853,690	3729
TOTAL ALL BUDGET FUND GROUPS			$	319,913,725		$	~~338,172,327~~	3730
			346,149,327		3731

Sec. 16.02. PASSPORT

3733

Appropriation item 490-403, PASSPORT, and the amounts set	3734
aside for the PASSPORT Waiver Program in appropriation item	3735
490-610, PASSPORT/Residential State Supplement, may be used to	3736
assess clients regardless of Medicaid eligibility.	3737

The Director of Aging shall adopt rules under section 111.15	3738
of the Revised Code governing the nonwaiver funded PASSPORT	3739
program, including client eligibility.	3740

The Department of Aging shall administer the Medicaid Waiver	3741
funded PASSPORT Home Care program as delegated by the Department	3742
of Job and Family Services in an interagency agreement. The	3743
foregoing appropriation item 490-403, PASSPORT, and the amounts	3744
set aside for the PASSPORT Waiver Program in appropriation item	3745
490-610, PASSPORT/Residential State Supplement, shall be used to	3746
provide the required state match for federal Medicaid funds	3747
supporting the Medicaid Waiver funded PASSPORT Home Care program.	3748
Appropriation item 490-403, PASSPORT, and the amounts set aside	3749
for the PASSPORT Waiver Program in appropriation item 490-610,	3750
PASSPORT/Residential State Supplement, may also be used to support	3751
the Department of Aging's administrative costs associated with	3752
operating the PASSPORT program.	3753

The foregoing appropriation item 490-607, PASSPORT, shall be	3754
used to provide the federal matching share for all PASSPORT	3755
program costs determined by the Department of Job and Family	3756
Services to be eligible for Medicaid reimbursement.	3757

SENIOR COMMUNITY SERVICES

3758

The foregoing appropriation item 490-411, Senior Community	3759
Services, shall be used for services designated by the Department	3760
of Aging, including, but not limited to, home-delivered meals,	3761
transportation services, personal care services, respite services,	3762
home repair, and care coordination. Service priority shall be	3763
given to low income, frail, and cognitively impaired persons 60	3764
years of age and over. The department shall promote cost sharing	3765
by service recipients for those services funded with block grant	3766
funds, including, where possible, sliding-fee scale payment	3767
systems based on the income of service recipients.	3768

ALZHEIMERS RESPITE

3769

The foregoing appropriation item 490-414, Alzheimers Respite,	3770
shall be used only to fund Alzheimer's disease services under	3771
section 173.04 of the Revised Code.	3772

TRANSPORTATION FOR ELDERLY

3773

The foregoing appropriation item 490-416, Transportation for	3774
Elderly, shall be used for non-capital expenses related to	3775
transportation services for the elderly that provide access to	3776
such things as healthcare services, congregate meals,	3777
socialization programs, and grocery shopping. The appropriation	3778
shall be allocated to the following agencies:	3779

(A) $45,000 per fiscal year to the Cincinnati Jewish	3780
Vocational Services;	3781

(B) $45,000 per fiscal year to the Cleveland Jewish	3782
Community Center;	3783

(C) $45,000 per fiscal year to the Columbus Jewish	3784
Federation;	3785

(D) $20,000 per fiscal year to the Dayton Jewish Family	3786
Services;	3787

(E) $10,000 per fiscal year to the Akron Jewish Community	3788
Center;	3789

(F) $5,000 per fiscal year to the Youngstown Jewish	3790
Federation;	3791

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

3792

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

3793

Agencies receiving funding from appropriation item 490-416,	3794
Transportation for Elderly, shall coordinate services with other	3795
local service agencies.	3796

RESIDENTIAL STATE SUPPLEMENT

3797

Under the Residential State Supplement Program, the amount	3798
used to determine whether a resident is eligible for payment and	3799
for determining the amount per month the eligible resident will	3800
receive shall be as follows:	3801

(A) $900 for a residential care facility, as defined in	3802
section 3721.01 of the Revised Code;	3803

(B) $900 for an adult group home, as defined in Chapter	3804
3722. of the Revised Code;	3805

(C) $800 for an adult foster home, as defined in Chapter	3806
173. of the Revised Code;	3807

(D) $800 for an adult family home, as defined in Chapter	3808
3722. of the Revised Code;	3809

(E) $800 for an adult community alternative home, as defined	3810
in Chapter 3724. of the Revised Code;	3811

(F) $800 for an adult residential facility, as defined in	3812
Chapter 5119. of the Revised Code;	3813

(G) $600 for adult community mental health housing services,	3814
as defined in division (B)(5) of section 173.35 of the Revised	3815
Code.	3816

The Departments of Aging and Job and Family Services shall	3817
reflect this amount in any applicable rules the departments adopt	3818
under section 173.35 of the Revised Code.	3819

TRANSFER OF RESIDENTIAL STATE SUPPLEMENT APPROPRIATIONS

3820

The Department of Aging may transfer cash by intrastate	3821
transfer vouchers from the foregoing appropriation items 490-412,	3822
Residential State Supplement, and 490-610, PASSPORT/Residential	3823
State Supplement, to the Department of Job and Family Services'	3824
Fund 4J5, Home and Community-Based Services for the Aged Fund.	3825
The funds shall be used to make benefit payments to Residential	3826
State Supplement recipients.	3827

LONG-TERM CARE OMBUDSMAN

3828

The foregoing appropriation item 490-410, Long-Term Care	3829
Ombudsman, shall be used for a program to fund ombudsman program	3830
activities in nursing homes, adult care facilities, boarding	3831
homes, and home and community care services.	3832

PRESCRIPTION DRUG DISCOUNT PROGRAM

3833

The foregoing appropriation item 490-419, Prescription Drug	3834
Discount Program, shall be used to administer a prescription drug	3835
discount program.	3836

SENIOR FACILITIES

3837

Of the foregoing appropriation item 490-504, Senior	3838
Facilities, in fiscal year 2002, $10,000 shall be for the Tri-city	3839
Senior Center, $10,000 shall be for the Westlake Senior Center,	3840
and $10,000 shall be for the Rocky River Senior Center.	3841

Of the foregoing appropriation item 490-504, Senior	3842
Facilities, $10,000 shall be for the Jilliard Senior Center,	3843
$10,000 shall be for the Northwest Stark County Senior Center, and	3844
$10,000 shall be for the North Ridgeville Senior Center.	3845

REGIONAL LONG-TERM CARE OMBUDSMAN PROGRAMS

3846

The foregoing appropriation item 490-609, Regional Long-Term	3847
Care Ombudsman Programs, shall be used solely to pay the costs of	3848
operating the regional long-term care ombudsman programs.	3849

PASSPORT/RESIDENTIAL STATE SUPPLEMENT

3850

Of the foregoing appropriation item 490-610,	3851
PASSPORT/Residential State Supplement, up to $2,835,000 each	3852
fiscal year shall be used to fund the Residential State Supplement	3853
Program. The remaining available funds shall be used to fund the	3854
PASSPORT program.	3855

Sec. 44. EDU DEPARTMENT OF EDUCATION

3856

General Revenue Fund

3857

GRF	200-100	Personal Services	$	11,819,828	$	12,113,828	3858
GRF	200-320	Maintenance and Equipment	$	5,052,866	$	5,185,051	3859
GRF	200-406	Head Start	$	98,843,825	$	98,843,825	3860
GRF	200-408	Public Preschool	$	19,506,206	$	19,506,206	3861
GRF	200-410	Professional Development	$	23,463,829	$	34,810,579	3862
GRF	200-411	Family and Children First	$	3,550,000	$	3,550,000	3863
GRF	200-416	Vocational Education Match	$	2,381,738	$	2,381,738	3864
GRF	200-420	Technical Systems Development	$	6,000,000	$	6,500,000	3865
GRF	200-421	Alternative Education Programs	$	18,000,000	$	18,000,000	3866
GRF	200-422	School Management Assistance	$	2,185,675	$	1,971,219	3867
GRF	200-424	Policy Analysis	$	642,756	$	674,894	3868
GRF	200-425	Tech Prep Administration	$	2,431,012	$	2,431,012	3869
GRF	200-426	Ohio Educational Computer Network	$	39,871,927	$	39,871,927	3870
GRF	200-427	Academic Standards	$	8,474,999	$	8,862,500	3871
GRF	200-431	School Improvement Initiatives	$	15,850,000	$	14,625,000	3872
GRF	200-432	School Conflict Management	$	626,496	$	657,821	3873
GRF	200-433	Reading/Writing Improvement	$	18,962,948	$	19,276,694	3874
GRF	200-437	Student Assessment	$	23,692,045	$	25,942,045	3875
GRF	200-438	Safe Schools	$	2,050,000	$	2,050,000	3876
GRF	200-441	American Sign Language	$	232,073	$	236,715	3877
GRF	200-442	Child Care Licensing	$	1,517,751	$	1,548,107	3878
GRF	200-444	Professional Recruitment	$	1,917,000	$	1,705,800	3879
GRF	200-445	OhioReads Admin/Volunteer Support	$	5,485,440	$	5,485,440	3880
GRF	200-446	Education Management Information System	$	16,479,636	$	17,573,430	3881
GRF	200-447	GED Testing/Adult High School	$	2,038,678	$	2,079,451	3882
GRF	200-455	Community Schools	$	4,728,935	$	4,824,517	3883
GRF	200-500	School Finance Equity	$	23,560,125	$	19,975,864	3884
GRF	200-501	Base Cost Funding	$	4,273,654,781	$	4,441,014,505	3885
GRF	200-502	Pupil Transportation	$	334,183,786	$	377,305,465	3886
GRF	200-503	Bus Purchase Allowance	$	36,735,279	$	36,799,984	3887
GRF	200-505	School Lunch Match	$	9,639,000	$	9,831,780	3888
GRF	200-509	Adult Literacy Education	$	8,628,000	$	8,628,000	3889
GRF	200-511	Auxiliary Services	$	122,782,475	$	127,650,709	3890
GRF	200-513	Student Intervention Services	$	31,900,000	$	38,280,000	3891
GRF	200-514	Post-Secondary/Adult Career-Technical Education	$	23,240,243	$	23,240,243	3892
GRF	200-520	Disadvantaged Pupil Impact Aid	$	360,149,743	$	360,149,743	3893
GRF	200-521	Gifted Pupil Program	$	45,930,131	$	47,983,321	3894
GRF	200-525	Parity Aid	$	99,813,832	$	210,305,911	3895
GRF	200-532	Nonpublic Administrative Cost Reimbursement	$	53,533,703	$	55,675,051	3896
GRF	200-534	Desegregation Costs	$	500,000	$	500,000	3897
GRF	200-540	Special Education Enhancements	$	139,006,701	$	141,950,428	3898
GRF	200-545	Career-Technical Education Enhancements	$	21,673,574	$	22,406,349	3899
GRF	200-546	Charge-Off Supplement	$	39,191,433	$	28,684,104	3900
GRF	200-552	County MR/DD Boards Vehicle Purchases	$	1,666,204	$	1,666,204	3901
GRF	200-553	County MR/DD Boards Transportation Operating	$	9,575,910	$	9,575,910	3902
GRF	200-558	Emergency Loan Interest Subsidy	$	4,500,000	$	3,300,000	3903
GRF	200-566	OhioReads Grants	$	27,148,000	$	27,148,000	3904
GRF	200-570	School Improvement Incentive Grants	$	837,500	$	987,500	3905
GRF	200-574	Substance Abuse Prevention	$	1,948,200	$	1,948,200	3906
GRF	200-580	Bethel School Cleanup	$	65,000	$	65,000	3907
GRF	200-901	Property Tax Allocation - Education	$	707,700,000	$	743,000,000	3908
GRF	200-906	Tangible Tax Exemption - Education	$	73,500,000	$	75,700,000	3909
TOTAL GRF General Revenue Fund			$	6,786,869,283	$	7,164,480,070	3910

General Services Fund Group

3911

138	200-606	Information Technology	$	6,629,469	$	6,761,034	3912
4D1	200-602	Ohio Prevention/Education Resource Center	$	345,000	$	345,000	3913
4L2	200-681	Teacher Certification and Licensure	$	4,684,143	$	4,856,290	3914
452	200-638	Miscellaneous Revenue	$	1,045,000	$	1,045,000	3915
5H3	200-687	School District Solvency Assistance	$	24,000,000	$	24,000,000	3916
596	200-656	Ohio Career Information System	$	743,217	$	769,230	3917
TOTAL GSF General Services							3918
Fund Group			$	37,446,829	$	37,776,554	3919

Federal Special Revenue Fund Group

3920

3C5	200-661	Federal Dependent Care Programs	$	18,189,907	$	18,233,488	3921
3D1	200-664	Drug Free Schools	$	20,621,375	$	20,660,570	3922
3D2	200-667	Honors Scholarship Program	$	2,454,688	$	2,540,602	3923
3H9	200-605	Head Start Collaboration Project	$	250,000	$	250,000	3924
3M0	200-623	ESEA Chapter One	$	320,505,063	$	330,172,277	3925
3M1	200-678	ESEA Chapter Two	$	13,595,978	$	14,059,555	3926
3M2	200-680	Ind W/Disab Education Act	$	186,000,000	$	206,000,000	3927
3L6	200-617	Federal School Lunch	$	175,274,000	$	180,181,672	3928
3L7	200-618	Federal School Breakfast	$	45,746,000	$	47,026,888	3929
3L8	200-619	Child and Adult Care Programs	$	60,257,639	$	61,966,125	3930
3L9	200-621	Vocational Education Basic Grant	$	43,613,582	$	45,142,330	3931
3S2	200-641	Tech Literacy Transfer	$	15,183,430	$	15,183,430	3932
3T4	200-613	Public Charter Schools	$	4,887,260	$	5,055,185	3933
3T6	200-611	Class Size Reduction	$	63,000,000	$	65,000,000	3934
3U2	200-662	Teacher Quality Enhancement Grants	$	1,300,501	$	1,352,000	3935
3U3	200-665	Reading Excellence Grant Program	$	10,018,756	$	0	3936
3U6	200-675	Provision 2 & 3 Grant	$	191,050	$	0	3937
309	200-601	Educationally Disadvantaged	$	20,759,222	$	21,425,345	3938
366	200-604	Adult Basic Education	$	17,527,286	$	18,140,740	3939
367	200-607	School Food Services	$	10,089,884	$	10,408,199	3940
368	200-614	Veterans' Training	$	648,514	$	671,212	3941
369	200-616	Vocational Education	$	8,000,000	$	8,000,000	3942
370	200-624	Education of All Handicapped Children	$	1,364,246	$	1,410,908	3943
371	200-631	EEO Title IV	$	1,155,361	$	1,213,894	3944
374	200-647	E.S.E.A. Consolidated	$	110,094	$	110,094	3945
378	200-660	Math/Science Technology Investments	$	12,696,055	$	13,036,530	3946
TOTAL FED Federal Special							3947
Revenue Fund Group			$	1,053,439,891	$	1,087,241,044	3948

State Special Revenue Fund Group

3949

4R7	200-695	Indirect Cost Recovery	$	3,942,779	$	4,168,947	3950
4V7	200-633	Interagency Vocational Support	$	695,197	$	731,674	3951
053	200-900	School District Property Tax Replacement	$	102,000,000	$	115,911,593	3952
454	200-610	Guidance and Testing	$	940,636	$	956,761	3953
455	200-608	Commodity Foods	$	10,000,000	$	11,000,000	3954
598	200-659	Auxiliary Services Mobile Units	$	1,328,910	$	1,328,910	3955
620	200-615	Educational Grants	$	1,525,000	$	1,525,000	3956
TOTAL SSR State Special Revenue							3957
Fund Group			$	120,432,522	$	135,622,885	3958

Lottery Profits Education Fund Group

3959

017	200-612	Base Cost Funding	$	604,000,000		$	596,000,000	3960
017	200-682	Lease Rental Payment Reimbursement	$	29,722,100		$	~~25,722,600~~ 35,722,600	3961
TOTAL LPE Lottery Profits								3962
Education Fund Group			$	633,722,100		$	~~621,722,600~~	3963
			631,722,600		3964
TOTAL ALL BUDGET FUND GROUPS			$	8,631,910,625		$	~~9,046,843,153~~	3965
			9,056,843,153		3966

Sec. 44.19. LOTTERY PROFITS EDUCATION FUND

3968

Appropriation item 200-612, Base Cost Funding (Fund 017),	3969
shall be used in conjunction with appropriation item 200-501, Base	3970
Cost Funding (GRF), to provide payments to school districts	3971
pursuant to Chapter 3317. of the Revised Code.	3972

Of the foregoing appropriation item 200-612, Base Cost	3973
Funding (Fund 017), $25,000,000 in each fiscal year shall be used	3974
from the funds transferred from the Unclaimed Prizes Trust Fund	3975
pursuant to the section entitled "Transfers from the Unclaimed	3976
Prizes Fund" of ~~this act~~Am. Sub. H.B. 94 of the 124th General	3977
Assembly.	3978

The Department of Education, with the approval of the	3979
Director of Budget and Management, shall determine the monthly	3980
distribution schedules of appropriation item 200-501, Base Cost	3981
Funding (GRF), and appropriation item 200-612, Base Cost Funding	3982
(Fund 017). If adjustments to the monthly distribution schedule	3983
are necessary, the Department of Education shall make such	3984
adjustments with the approval of the Director of Budget and	3985
Management.	3986

Of the foregoing appropriation item 200-682, Lease Rental	3987
Payment Reimbursement (Fund 017), $10,000,000 in fiscal year 2003	3988
shall be used from the funds transferred from the Unclaimed Prizes	3989
Trust Fund pursuant to the paragraph with the heading "Transfers	3990
from the Unclaimed Prizes Fund" in Am. Sub. H.B. 94 of the 124th	3991
General Assembly.	3992

The Director of Budget and Management shall transfer via	3993
intrastate transfer voucher the amount appropriated under the	3994
Lottery Profits Education Fund for appropriation item 200-682,	3995
Lease Rental Payment Reimbursement, to the General Revenue Fund on	3996
a schedule determined by the director. These funds shall support	3997
the appropriation item 230-428, Lease Rental Payments (GRF), of	3998
the School Facilities Commission.	3999

LOTTERY PROFITS TRANSFERS*

4000

On the fifteenth day of May of each fiscal year, the Director	4001
of Budget and Management shall determine if lottery profits	4002
transfers will meet the appropriation amounts from the Lottery	4003
Profits Education Fund.	4004

On or after the date specified in each fiscal year, if the	4005
director determines that lottery profits will not meet	4006
appropriations and if other funds are not available to meet the	4007
shortfall, the Superintendent of Public Instruction shall take the	4008
actions specified under the "Reallocation of Funds" section of	4009
~~this act~~Am. Sub. H.B. 94 of the 124th General Assembly.	4010

TRANSFERS FROM THE UNCLAIMED PRIZES FUND

4011

By the fifteenth day of January of fiscal year 2002 and	4012
fiscal year 2003, the Director of Budget and Management shall	4013
respectively transfer $25,000,000 for fiscal year 2002 and	4014
$35,000,000 for fiscal year 2003 from the State Lottery	4015
Commission's Unclaimed Prizes Fund to the Lottery Profits	4016
Education Fund, to be used solely for purposes specified in the	4017
Department of Education's budget. Transfers of unclaimed prizes	4018
under this provision shall not count as lottery profits in the	4019
determination made concerning excess profits titled "Lottery	4020
Profits" under the Department of Education in ~~this act~~Am. Sub.	4021
H.B. 94 of the 124th General Assembly.	4022

TEACHER CERTIFICATION AND LICENSURE

4023

The foregoing appropriation item 200-681, Teacher	4024
Certification and Licensure, shall be used by the Department of	4025
Education in each year of the biennium to administer teacher	4026
certification and licensure functions pursuant to sections	4027
3301.071, 3301.074, 3301.50, 3301.51, 3319.088, 3319.22, 3319.24	4028
to 3319.28, 3319.281, 3319.282, 3319.29, 3319.301, 3319.31, and	4029
3319.51 of the Revised Code.	4030

Sec. 63.07. MEDICAID PROGRAM SUPPORT FUND - STATE

4031

The foregoing appropriation item 600-671, Medicaid Program	4032
Support, shall be used by the Department of Job and Family	4033
Services to pay for Medicaid services and contracts.	4034

HEALTH CARE SERVICES ADMINISTRATION

4035

The foregoing appropriation item 600-654, Health Care	4036
Services Administration, shall be used by the Department of Job	4037
and Family Services for costs associated with the administration	4038
of the Medicaid program.	4039

HEALTH CARE SERVICES ADMINISTRATION FUND

4040

For fiscal year 2003, the Director of Job and Family	4041
Services may deposit revenue received from federal reimbursement	4042
for allowable Title XIX administrative expenditures made by state	4043
or local entities into the Health Care Services Administration	4044
Fund (Fund 5U3).	4045

Of the amount received by the Department of Job and Family	4046
Services during fiscal year 2003 from the first installment of	4047
assessments paid under section 5112.06 of the Revised Code and	4048
intergovernmental transfers made under section 5112.07 of the	4049
Revised Code, the Director of Job and Family Services shall	4050
deposit $175,000 into the state treasury to the credit of the	4051
Health Care Services Administration Fund (Fund 5U3).	4052

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

4053

(1) "Medicaid days" means all days during which a resident	4054
who is a Medicaid recipient occupies a bed in a nursing facility	4055
that is included in the facility's certified capacity under Title	4056
XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C.A.	4057
1396, as amended. Therapeutic or hospital leave days for which	4058
payment is made under section 5111.33 of the Revised Code are	4059
considered Medicaid days proportionate to the percentage of the	4060
nursing facility's per resident per day rate paid for those days.	4061

(2) "Nursing facility" has the same meaning as in section	4062
5111.20 of the Revised Code.	4063

(3) "Total per diem rate" includes the payments made to	4064
nursing facilities under division (B) of the section of ~~this act~~	4065
Am. Sub. H.B. 94 of the 124th General Assembly titled "Nursing	4066
Facility Stabilization Fund."	4067

(B) Notwithstanding sections 5111.20 to 5111.32 of the	4068
Revised Code, rates paid to nursing facilities under the Medicaid	4069
program shall be subject to the following limitations:	4070

(1) For fiscal year 2002, the mean total per diem rate for	4071
all nursing facilities in the state, weighted by Medicaid days and	4072
calculated as of July 1, 2001, under sections 5111.20 to 5111.32	4073
of the Revised Code, shall not exceed $143.92.	4074

(2) For fiscal year 2003, the mean total per diem rate for	4075
all nursing facilities in the state, weighted by Medicaid days and	4076
calculated as of July 1, 2002, under sections 5111.20 to 5111.32	4077
of the Revised Code, shall not exceed ~~$152.66~~$153.41, plus any	4078
difference between $143.92 and the mean total per diem rate for	4079
all nursing facilities in the state for fiscal year 2002, weighted	4080
by Medicaid days and calculated as of July 1, 2001, under sections	4081
5111.20 to 5111.32 of the Revised Code.	4082

(3) If the mean total per diem rate for all nursing	4083
facilities in the state for fiscal year 2002 or 2003, weighted by	4084
Medicaid days and calculated under sections 5111.20 to 5111.32 of	4085
the Revised Code as of the first day of July of the calendar year	4086
in which the fiscal year begins, exceeds the amount specified for	4087
that fiscal year in division (B)(1) or (2) of this section, the	4088
Department of Job and Family Services shall reduce the total per	4089
diem rate for each nursing facility in the state by a percentage	4090
that is equal to the percentage by which the mean total per diem	4091
rate exceeds the amount specified in division (B)(1) or (2) of	4092
this section for that fiscal year.	4093

(4) Subsequent to any reduction required by division (B)(1),	4094
(2), or (3) of this section, a nursing facility's rate shall be	4095
subject to any adjustments required or authorized by sections	4096
5111.20 to 5111.32 of the Revised Code during the remainder of the	4097
fiscal year.	4098

(C) Except as follows, the Department of Job and Family	4099
Services shall continue to implement rules adopted under sections	4100
5111.02 and 5111.20 to 5111.32 of the Revised Code regarding	4101
Medicaid payments to nursing facilities that are in effect on the	4102
effective date of this section:	4103

(1) The Department shall not continue to implement a rule	4104
that is inconsistent with ~~this act~~Am. Sub. H.B. 94 of the 124th	4105
General Assembly, but shall instead implement this act.	4106

(2) The Department may adopt, amend, or rescind rules under	4107
sections 5111.02 and 5111.20 to 5111.32 of the Revised Code as	4108
provided by those sections to the extent those sections are	4109
consistent with ~~this act~~Am. Sub. H.B. 94 of the 124th General	4110
Assembly.	4111

Sec. 75.02. COMMUNITY SERVICES

4112

General Revenue Fund

4113

GRF	322-405	State Use Program	$	264,685	$	264,685	4114
GRF	322-413	Residential and Support	$	154,418,317	$	164,539,811	4115
		Services					4116
GRF	322-451	Family Support Services	$	7,975,870	$	7,975,870	4117
GRF	322-452	Case Management	$	8,984,491	$	9,874,628	4118
GRF	322-501	County Boards Subsidies	$	45,366,297	$	46,817,644	4119
TOTAL GRF General Revenue Fund			$	217,009,660	$	229,722,638	4120

General Services Fund Group

4121

4J6	322-645	Intersystem Services for	$	5,000,000	$	5,000,000	4122
		Children					4123
4U4	322-606	Community MR and DD Trust	$	125,000	$	131,250	4124
4V1	322-611	Program Support	$	2,000,000	$	2,000,000	4125
488	322-603	Residential Services	$	2,499,188	$	2,499,188	4126
		Refund					4127
TOTAL GSF General Services							4128
Fund Group			$	9,624,188	$	9,630,438	4129

Federal Special Revenue Fund Group

4130

3A4	322-605	Community Program Support	$	3,024,047	$	3,326,452	4131
3A4	322-610	Community Residential	$	5,924,858	$	5,924,858	4132
		Support					4133
3A5	322-613	DD Council Grants	$	3,358,290	$	3,358,290	4134
3G6	322-639	Medicaid Waiver	$	148,304,949	$	151,754,169	4135
3M7	322-650	CAFS Medicaid	$	163,747,903	$	172,568,939	4136
325	322-608	Federal Grants -	$	1,360,000	$	1,360,000	4137
		Operating Expenses					4138
325	322-612	Social Service Block	$	11,500,000	$	11,500,000	4139
		Grant					4140
325	322-617	Education Grants -	$	115,000	$	115,000	4141
		Operating					4142
TOTAL FED Federal Special Revenue							4143
Fund Group			$	337,335,047	$	349,907,708	4144

State Special Revenue Fund Group

4145

4K8	322-604	Waiver - Match	$	13,783,463	$	14,039,133	4146
5H0	322-619	Medicaid Repayment	$	562,080	$	576,132	4147
TOTAL SSR State Special Revenue							4148
Fund Group			$	14,345,543	$	14,615,265	4149
TOTAL ALL COMMUNITY SERVICES							4150
BUDGET FUND GROUPS			$	578,314,438	$	603,626,049	4151

RESIDENTIAL AND SUPPORT SERVICES

4152

The foregoing appropriation item 322-413, Residential and	4153
Support Services, shall be used for any of the following:	4154

(A) Home and community-based waiver services pursuant to	4155
Title XIX of the "Social Security Act," 49 Stat. 620 (1935), 42	4156
U.S.C. 301, as amended;	4157

(B) Services contracted by county boards of mental	4158
retardation and developmental disabilities;	4159

(C) Supported living services contracted by county boards of	4160
mental retardation and developmental disabilities in accordance	4161
with sections 5126.40 to 5126.47 of the Revised Code;	4162

(D) Sermak Class Services used to implement the requirements	4163
of the consent decree in Sermak v. Manuel, Case No. c-2-80-220,	4164
United States District Court for the Southern District of Ohio,	4165
Eastern Division;	4166

(E) Other Medicaid-reimbursed programs, in an amount not to	4167
exceed $1,000,000 in each fiscal year, that enable persons with	4168
mental retardation and developmental disabilities to live in the	4169
community.	4170

Notwithstanding Chapters 5123. and 5126. of the Revised Code,	4171
the Department of Mental Retardation and Developmental	4172
Disabilities may develop residential and support service programs	4173
that enable persons with mental retardation and developmental	4174
disabilities to live in the community. Notwithstanding Chapter	4175
5121. and section 5123.122 of the Revised Code, the department may	4176
waive the support collection requirements of those statutes for	4177
persons in community programs developed by the department under	4178
this section. The department shall adopt rules under Chapter 119.	4179
of the Revised Code or may use existing rules for the	4180
implementation of these programs.	4181

The Department of Mental Retardation and Developmental	4182
Disabilities may designate a portion of appropriation item	4183
332-413, Residential and Support Services, to county boards of	4184
mental retardation and developmental disabilities that have	4185
greater need for various residential and support services due to a	4186
low percentage of residential and support services development in	4187
comparison to the number of individuals with mental retardation or	4188
developmental disabilities in the county.	4189

Not later than 30 days after the effective date of this	4190
section, the Director of Budget and Management shall transfer up	4191
to $5,000,000 from appropriation item 322-413, Residential and	4192
Support Services, to appropriation item 322-501, County Boards	4193
Subsidies. The total amount that is transferred from appropriation	4194
item 322-413 to appropriation item 322-501 shall be used for the	4195
tax equalization program ~~created~~ under ~~sections 5126.16 to~~section	4196
5126.18 of the Revised Code, as amended and renumbered by S.B. 261	4197
of the 124th General Assembly, and is subject to all statutes and	4198
rules established for the tax equalization program.	4199

Not later than July 30, 2002, the Director of Budget and	4200
Management shall transfer up to $11,500,000 from appropriation	4201
item 322-413, Residential and Support Services, to appropriation	4202
item 322-501, County Boards Subsidies. The total amount that is	4203
transferred from appropriation item 322-413 to appropriation item	4204
322-501 shall be used for the tax equalization program ~~created~~	4205
under ~~sections 5126.16 to~~section 5126.18 of the Revised Code, as	4206
amended and renumbered by S.B. 261 of the 124th General Assembly,	4207
and is subject to all statutes and rules established for the tax	4208
equalization program.	4209

Of the foregoing appropriation item 322-413, Residential and	4210
Support Services, $9,700,000 in fiscal year 2002 and $9,850,000 in	4211
fiscal year 2003 shall be distributed by the Department to county	4212
boards of mental retardation and developmental disabilities to	4213
support existing residential facilities waiver and individual	4214
options waiver related Medicaid activities provided for in the	4215
component of a county board's plan developed under division (A)(2)	4216
of section 5126.054 of the Revised Code and approved under section	4217
5123.046 of the Revised Code. Up to $3,000,000 of these funds in	4218
each fiscal year may be used to implement day-to-day program	4219
management services under division (A)(2) of section 5126.054 of	4220
the Revised Code. Up to $4,200,000 in each fiscal year may be used	4221
to implement the program and health and welfare requirements of	4222
division (A)(2) of section 5126.054 of the Revised Code.	4223

In fiscal years 2002 and 2003, not less than $2,500,000 and	4224
$2,650,000, respectively, of these funds shall be used to recruit	4225
and retain, under division (A)(2) of section 5126.054 of the	4226
Revised Code, the direct care staff necessary to implement the	4227
services included in an individualized service plan in a manner	4228
that ensures the health and welfare of the individuals being	4229
served.	4230

FAMILY SUPPORT SERVICES

4231

Notwithstanding sections 5123.171, 5123.19, 5123.20, and	4232
5126.11 of the Revised Code, the Department of Mental Retardation	4233
and Developmental Disabilities may implement programs funded by	4234
appropriation item 322-451, Family Support Services, to provide	4235
assistance to persons with mental retardation or developmental	4236
disabilities and their families who are living in the community.	4237
The department shall adopt rules to implement these programs.	4238

CASE MANAGEMENT

4239

The foregoing appropriation item 322-452, Case Management,	4240
shall be allocated to county boards of mental retardation and	4241
developmental disabilities for the purpose of providing case	4242
management services and to assist in bringing state funding for	4243
all department-approved case managers within county boards of	4244
mental retardation and developmental disabilities to the level	4245
authorized in division (C) of section 5126.15 of the Revised Code.	4246
The department may request approval from the Controlling Board to	4247
transfer any unobligated appropriation authority from other state	4248
General Revenue Fund appropriation items within the department's	4249
budget to appropriation item 322-452, Case Management, to be used	4250
to meet the statutory funding level in division (C) of section	4251
5126.15 of the Revised Code.	4252

Notwithstanding division (C) of section 5126.15 of the	4253
Revised Code and subject to funding in appropriation item 322-452,	4254
Case Management, no county may receive less than its allocation in	4255
fiscal year 1995.	4256

STATE SUBSIDIES TO MR/DD BOARDS

4257

Of the foregoing appropriation item 322-501, County Boards	4258
Subsidies, $6,500,000 in fiscal year 2002 and $13,000,000 in	4259
fiscal year 2003 shall be used to fund the tax equalization	4260
program ~~created~~ under ~~sections 5126.16 to~~section 5126.18 of the	4261
Revised Code, as amended and renumbered by S.B. 261 of the 124th	4262
General Assembly, for county boards of mental retardation and	4263
developmental disabilities. ~~The tax equalization program shall~~	4264
~~utilize the average daily membership of adults 22 years of age and~~	4265
~~older in habilitation, vocational, and community employment~~	4266
~~services only for the yield on 1/2 mills.~~	4267

After funding the tax equalization program, the Department of	4268
Mental Retardation and Developmental Disabilities shall distribute	4269
~~the~~any remaining appropriation authority in appropriation item	4270
322-501, County Boards Subsidies, to county boards of mental	4271
retardation and developmental disabilities for subsidies	4272
distributed pursuant to section 5126.12 of the Revised Code to the	4273
limit of the lesser of the amount required by that section or the	4274
remaining balance of the appropriation authority in appropriation	4275
item 322-501 prorated to all county boards of mental retardation	4276
and developmental disabilities.	4277

INTERSYSTEM SERVICES FOR CHILDREN

4278

The foregoing appropriation item 322-645, Intersystem	4279
Services for Children, shall be used to support direct grants to	4280
county family and children first councils created under section	4281
121.37 of the Revised Code. The funds shall be used as partial	4282
support payment and reimbursement for locally coordinated	4283
treatment plans for multi-needs children that come to the	4284
attention of the Family and Children First Cabinet Council	4285
pursuant to section 121.37 of the Revised Code. The Department of	4286
Mental Retardation and Developmental Disabilities may use up to	4287
five per cent of this amount for administrative expenses	4288
associated with the distribution of funds to the county councils.	4289

WAIVER - MATCH

4290

The foregoing appropriation item 322-604, Waiver-Match (Fund	4291
4K8), shall be used as state matching funds for the home and	4292
community-based waivers.	4293

The Department of Job and Family Services may enter into an	4294
interagency agreement with the Department of Mental Retardation	4295
and Developmental Disabilities providing for the Department of	4296
Mental Retardation and Developmental Disabilities to operate the	4297
program.	4298

Sec. 94. BOR BOARD OF REGENTS

4299

General Revenue Fund

4300

GRF	235-321	Operating Expenses	$	3,137,394	$	3,137,394	4301
GRF	235-401	Lease-Rental Payments	$	295,058,500	$	268,910,500	4302
GRF	235-402	Sea Grants	$	299,940	$	299,940	4303
GRF	235-403	Math/Science Teaching Improvement	$	1,984,000	$	2,018,680	4304
GRF	235-404	College Readiness Initiatives	$	2,500,000	$	2,500,000	4305
GRF	235-406	Articulation and Transfer	$	800,000	$	800,000	4306
GRF	235-408	Midwest Higher Education Compact	$	75,000	$	75,000	4307
GRF	235-409	Information System	$	1,362,023	$	1,362,023	4308
GRF	235-414	State Grants and Scholarship Administration	$	1,373,420	$	1,373,420	4309
GRF	235-415	Jobs Challenge	$	10,100,000	$	10,200,000	4310
GRF	235-417	Ohio Learning Network	$	3,920,000	$	3,920,000	4311
GRF	235-418	Access Challenge	$	62,268,000	$	62,268,000	4312
GRF	235-420	Success Challenge	$	47,041,000	$	47,041,000	4313
GRF	235-428	Appalachian New Economy Partnership	$	1,000,000	$	1,500,000	4314
GRF	235-451	Eminent Scholars	$	0	$	3,000,000	4315
GRF	235-454	Research Challenge	$	20,000,000	$	20,000,000	4316
GRF	235-455	Productivity Improvement Challenge	$	1,694,947	$	1,728,845	4317
GRF	235-474	Area Health Education Centers Program Support	$	2,093,727	$	2,135,601	4318
GRF	235-477	Access Improvement Projects	$	1,110,879	$	1,110,879	4319
GRF	235-501	State Share of Instruction	$	1,659,011,727	$	1,668,611,581	4320
GRF	235-502	Student Support Services	$	1,000,000	$	1,000,000	4321
GRF	235-503	Ohio Instructional Grants	$	98,000,000	$	111,500,000	4322
GRF	235-504	War Orphans Scholarships	$	4,652,548	$	4,792,124	4323
GRF	235-507	OhioLINK	$	7,668,731	$	7,668,731	4324
GRF	235-508	Air Force Institute of Technology	$	2,000,000	$	2,000,000	4325
GRF	235-509	Displaced Homemakers	$	240,096	$	240,096	4326
GRF	235-510	Ohio Supercomputer Center	$	4,833,574	$	4,833,574	4327
GRF	235-511	Cooperative Extension Service	$	27,708,525	$	27,708,525	4328
GRF	235-513	OU Voinovich Center	$	367,500	$	367,500	4329
GRF	235-514	Central State Supplement	$	12,044,956	$	12,044,956	4330
GRF	235-515	Case Western Reserve University School of Medicine	$	4,280,224	$	4,281,936	4331
GRF	235-519	Family Practice	$	6,538,471	$	6,541,087	4332
GRF	235-520	Shawnee State Supplement	$	2,272,000	$	2,272,000	4333
GRF	235-521	OSU Glenn Institute	$	367,500	$	367,500	4334
GRF	235-524	Police and Fire Protection	$	240,096	$	240,096	4335
GRF	235-525	Geriatric Medicine	$	1,087,195	$	1,108,939	4336
GRF	235-526	Primary Care Residencies	$	3,166,168	$	3,229,491	4337
GRF	235-527	Ohio Aerospace Institute	$	2,383,334	$	2,383,334	4338
GRF	235-530	Academic Scholarships	$	8,000,000	$	8,000,000	4339
GRF	235-531	Student Choice Grants	$	52,428,000	$	53,476,560	4340
GRF	235-534	Student Workforce Development Grants	$	1,200,000	$	1,200,000	4341
GRF	235-535	Ohio Agricultural Research and Development Center	$	38,730,884	$	38,730,884	4342
GRF	235-536	Ohio State University Clinical Teaching	$	15,989,883	$	15,996,281	4343
GRF	235-537	University of Cincinnati Clinical Teaching	$	13,151,461	$	13,156,724	4344
GRF	235-538	Medical College of Ohio at Toledo Clinical Teaching	$	10,250,851	$	10,254,953	4345
GRF	235-539	Wright State University Clinical Teaching	$	4,980,064	$	4,982,057	4346
GRF	235-540	Ohio University Clinical Teaching	$	4,814,378	$	4,816,305	4347
GRF	235-541	Northeastern Ohio Universities College of Medicine Clinical Teaching	$	4,951,583	$	4,953,565	4348
GRF	235-543	Ohio College of Podiatric Medicine Clinical Subsidy	$	499,800	$	500,000	4349
GRF	235-547	School of International Business	$	1,708,764	$	1,708,764	4350
GRF	235-549	Part-time Student Instructional Grants	$	13,311,638	$	13,977,219	4351
GRF	235-552	Capital Component	$	14,537,639	$	14,537,639	4352
GRF	235-553	Dayton Area Graduate Studies Institute	$	3,779,088	$	3,779,088	4353
GRF	235-554	Computer Science Graduate Education	$	3,482,368	$	3,482,368	4354
GRF	235-555	Library Depositories	$	1,999,200	$	2,039,184	4355
GRF	235-556	Ohio Academic Resources Network	$	3,510,777	$	3,580,993	4356
GRF	235-558	Long-term Care Research	$	312,004	$	312,004	4357
GRF	235-561	Bowling Green State University Canadian Studies Center	$	164,289	$	164,289	4358
GRF	235-572	Ohio State University Clinic Support	$	2,061,138	$	2,061,138	4359
GRF	235-583	Urban University Programs	$	6,503,559	$	6,503,559	4360
GRF	235-585	Ohio University Innovation Center	$	48,750	$	48,750	4361
GRF	235-587	Rural University Projects	$	1,375,552	$	1,375,552	4362
GRF	235-588	Ohio Resource Center for Mathematics, Science, and Reading	$	980,000	$	980,000	4363
GRF	235-595	International Center for Water Resources Development	$	185,593	$	185,593	4364
GRF	235-596	Hazardous Materials Program	$	390,096	$	390,096	4365
GRF	235-599	National Guard Scholarship Program	$	12,048,106	$	12,048,106	4366
GRF	235-909	Higher Education General Obligation Debt Service	$	50,055,100	$	74,344,100	4367
TOTAL GRF General Revenue Fund			$	~~2,565,132.040~~ 2,565,132,040	$	~~2,589,158,523~~ 2,592,158,523	4368

General Services Fund Group

4369

456	235-603	Publications	$	43,050	$	44,342	4370
456	235-613	Job Preparation Initiative	$	144,383	$	144,383	4371
TOTAL GSF General Services							4372
Fund Group			$	187,433	$	188,725	4373

Federal Special Revenue Fund Group

4374

3H2	235-608	Human Services Project	$	1,500,000	$	1,500,000	4375
3N6	235-605	State Student Incentive Grants	$	2,000,000	$	2,000,000	4376
3T0	235-610	NHSC Ohio Loan Repayment	$	100,000	$	100,000	4377
312	235-609	Tech Prep	$	183,852	$	183,852	4378
312	235-611	Gear-up Grant	$	1,590,986	$	1,690,434	4379
312	235-612	Carl D. Perkins Grant/Plan Administration	$	112,960	$	112,960	4380
312	235-631	Federal Grants	$	2,055,511	$	0	4381
TOTAL FED Federal Special Revenue							4382
Fund Group			$	7,543,309	$	5,587,246	4383

State Special Revenue Fund Group

4384

4E8	235-602	HEFC Administration	$	13,080	$	13,900	4385
4P4	235-604	Physician Loan Repayment	$	416,067	$	436,870	4386
649	235-607	Ohio State University Highway/Transportation Research	$	855,021	$	760,000	4387
682	235-606	Nursing Loan Program	$	870,000	$	893,000	4388
TOTAL SSR State Special Revenue							4389
Fund Group			$	2,154,168	$	2,103,770	4390
TOTAL ALL BUDGET FUND GROUPS			$	2,575,016,950	$	~~2,597,038,264~~ 2,600,038,264	4391

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

4393

JOBS CHALLENGE

4394

Funds appropriated to appropriation item 235-415, Jobs	4395
Challenge, shall be distributed to state-assisted community and	4396
technical colleges, regional campuses of state-assisted	4397
universities, and other organizationally distinct and identifiable	4398
member campuses of the EnterpriseOhio Network in support of	4399
noncredit job-related training. In fiscal years 2002 and 2003,	4400
$2,114,673 and $1,981,841, respectively, shall be distributed as	4401
performance grants to EnterpriseOhio Network campuses based upon	4402
each campus's documented performance according to criteria	4403
established by the Board of Regents for increasing training and	4404
related services to businesses, industries, and public sector	4405
organizations.	4406

Of the foregoing appropriation item 235-415, Jobs Challenge,	4407
$3,130,087 in fiscal year 2002 and $2,875,953 in fiscal year 2003	4408
shall be allocated to the Targeted Industries Training Grant	4409
Program to attract, develop, and retain business and industry	4410
strategically important to the state's economy.	4411

Also, in fiscal years 2002 and 2003, $2,991,513 and	4412
$3,629,797, respectively, shall be allocated to the Non-credit	4413
Incentives Grant Program to reward two-year campuses for	4414
increasing the amount of non-credit skill upgrading services	4415
provided to Ohio employers and employees. The funds shall be	4416
distributed to campuses in proportion to each campus's share of	4417
noncredit job-related training revenues received by all campuses	4418
for the previous fiscal year. It is the intent of the General	4419
Assembly that this workforce development incentive component of	4420
the Jobs Challenge Program reward campus noncredit job-related	4421
training efforts in the same manner that the Research Challenge	4422
Program rewards campuses for their ability to obtain sponsored	4423
research revenues.	4424

Of the foregoing appropriation item 235-415, Jobs Challenge,	4425
$1,863,726 in fiscal year 2002 and $1,712,409 in fiscal year 2003	4426
shall be allocated as an incentive to support local EnterpriseOhio	4427
Network Campus/Adult Workforce Education Center Partnerships. The	4428
purpose of the partnerships is to promote and deliver coordinated,	4429
comprehensive training to local employers. Each partnership shall	4430
include a formal agreement between one or more EnterpriseOhio	4431
Network campus and one or more adult workforce education center	4432
for the delivery of training services.	4433

ACCESS CHALLENGE

4434

In each fiscal year, the foregoing appropriation item	4435
235-418, Access Challenge, shall be distributed to Ohio's	4436
state-assisted access colleges and universities. For the	4437
purposes of this allocation, "access campuses" includes	4438
state-assisted community colleges, state community colleges,	4439
technical colleges, Shawnee State University, Central State	4440
University, Cleveland State University, the regional campuses of	4441
state-assisted universities, and, where they are organizationally	4442
distinct and identifiable, the community-technical colleges	4443
located at the University of Cincinnati, Youngstown State	4444
University, and the University of Akron.	4445

In fiscal years 2002 and 2003, Access Challenge subsidies	4446
shall be distributed by the Board of Regents to eligible access	4447
campuses on the basis of each campus's share of fiscal year 1999	4448
all-terms subsidy eligible General Studies FTEs. For the purpose	4449
of these calculations, the average all-terms subsidy eligible	4450
General Studies FTEs for Youngstown State University's eligible	4451
Comm-Tech enrollments shall equal 348.	4452

For the purposes of this calculation, Cleveland State	4453
University's enrollments shall be adjusted by the ratio of the sum	4454
of subsidy-eligible lower-division FTE student enrollments	4455
eligible for access funding to the sum of subsidy-eligible General	4456
Studies FTE student enrollments at Central State University and	4457
Shawnee State University, and for the following universities and	4458
their regional campuses: Ohio State University, Ohio University,	4459
Kent State University, Bowling Green State University, Miami	4460
University, the University of Cincinnati, the University of Akron,	4461
and Wright State University.	4462

SUCCESS CHALLENGE

4463

The foregoing appropriation item 235-420, Success Challenge,	4464
shall be used by the Board of Regents to promote degree	4465
completion by students enrolled at a main campus of a	4466
state-assisted university.	4467

In each fiscal year, two-thirds of the appropriations shall	4468
be distributed to state-assisted university main campuses in	4469
proportion to each campus's share of the total statewide	4470
bachelor's degrees granted by university main campuses to	4471
"at-risk" students. In fiscal years 2002 and 2003, an "at-risk"	4472
student means any undergraduate student who has received an Ohio	4473
Instructional Grant during the past ten years. An eligible	4474
institution shall not receive its share of this distribution until	4475
it has submitted a plan that addresses how the subsidy will be	4476
used to better serve at-risk students and increase their	4477
likelihood of successful completion of a bachelor's degree	4478
program. The Board of Regents shall disseminate to all	4479
state-supported institutions of higher education all such plans	4480
submitted by institutions that received Success Challenge funds.	4481

In each fiscal year, one-third of the appropriations shall be	4482
distributed to university main campuses in proportion to each	4483
campus's share of the total bachelor's degrees granted by	4484
university main campuses to undergraduate students who completed	4485
their bachelor's degrees in a "timely manner" in the previous	4486
fiscal year. For the purposes of this section, "timely manner"	4487
means the normal time it would take for a full-time degree-seeking	4488
undergraduate student to complete the student's degree. Generally,	4489
for such students pursuing a bachelor's degree, "timely manner"	4490
means four years. Exceptions to this general rule shall be	4491
permitted for students enrolled in programs specifically designed	4492
to be completed in a longer time period. The Board of Regents	4493
shall collect base-line data beginning with the 1998-99 academic	4494
year to assess the timely completion statistics by university main	4495
campuses.	4496

EMINENT SCHOLARS

4497

The foregoing appropriation item 235-451, Eminent Scholars,	4498
shall be used by the Ohio Board of Regents to establish an Ohio	4499
Eminent Scholars Program, the purpose of which is to invest	4500
educational resources to address problems that are of vital	4501
statewide significance while fostering the growth in eminence of	4502
Ohio's academic programs. Endowment grants of $750,000 to state	4503
colleges and universities and nonprofit Ohio institutions of	4504
higher education holding certificates of authorization issued	4505
under section 1713.02 of the Revised Code to match endowment gifts	4506
from nonstate sources may be made in accordance with a plan	4507
established by the Ohio Board of Regents. Matching gifts in	4508
science and technology programs shall be $750,000, and in all	4509
other program areas, $500,000. The grants shall have as their	4510
purpose attracting and sustaining in Ohio scholar-leaders of	4511
national or international prominence, each of whom will assist the	4512
state in one of the following three areas: (1) improving the	4513
state's economic development; (2) strengthening the state's	4514
system of K-12 education; or (3) improving public health and	4515
safety. Such scholar-leaders shall, among their duties, share	4516
broadly the benefits and knowledge unique to their fields of	4517
scholarship to the betterment of Ohio and its people.	4518

RESEARCH CHALLENGE

4519

The foregoing appropriation item 235-454, Research Challenge,	4520
shall be used to enhance the basic research capabilities of public	4521
colleges and universities and accredited Ohio institutions of	4522
higher education holding certificates of authorization issued	4523
pursuant to section 1713.02 of the Revised Code, in order to	4524
strengthen academic research for pursuing Ohio's economic	4525
redevelopment goals. The Board of Regents, in consultation with	4526
the colleges and universities, shall administer the Research	4527
Challenge Program and utilize a means of matching, on a fractional	4528
basis, external funds attracted in the previous year by	4529
institutions for basic research. The program may include	4530
incentives for increasing the amount of external research funds	4531
coming to eligible institutions and for focusing research efforts	4532
upon critical state needs. Colleges and universities shall submit	4533
for review and approval to the Board of Regents plans for the	4534
institutional allocation of state dollars received through the	4535
program. The institutional plans shall provide the rationale for	4536
the allocation in terms of the strategic targeting of funds for	4537
academic and state purposes, for strengthening research programs,	4538
and for increasing the amount of external research funds, and	4539
shall include an evaluation process to provide results of the	4540
increased support.	4541

The Board of Regents shall submit a biennial report of	4542
progress to the General Assembly.	4543

COMPUTER SCIENCE GRADUATE EDUCATION

4544

The foregoing appropriation item 235-554, Computer Science	4545
Graduate Education, shall be used by the Board of Regents to	4546
support improvements in graduate programs in computer science at	4547
state-assisted universities. In each fiscal year, up to $200,000	4548
may be used to support collaborative efforts in graduate education	4549
in this program area.	4550

Sec. 94.06. PLEDGE OF FEES*

4551

Any new pledge of fees, or new agreement for adjustment of	4552
fees, made in the 2001-2003 biennium to secure bonds or notes of a	4553
state-assisted institution of higher education for a project for	4554
which bonds or notes were not outstanding on the effective date of	4555
this section shall be effective only after approval by the Board	4556
of Regents, unless approved in a previous biennium.	4557

HIGHER EDUCATION GENERAL OBLIGATION DEBT SERVICE

4558

The foregoing appropriation item 235-909, Higher Education	4559
General Obligation Debt Service, shall be used to pay all debt	4560
service and financing costs at the times they are required to be	4561
made pursuant to sections 151.01 and 151.04 of the Revised Code	4562
during the period from July 1, 2001, to June 30, 2003. The Office	4563
of the Sinking Fund or the Director of Budget and Management shall	4564
effectuate the required payments by an interstate transfer	4565
voucher.	4566

~~Of the foregoing appropriation item 235-909, Higher Educatoin~~	4567
~~General Obligation Debt Service, surplus funds net of encumbrances~~	4568
~~from the appropriation for fiscal year 2002 shall be~~	4569
~~reappropriated to appropriation item 235-501, State Share of~~	4570
~~Instruction, for fiscal year 2003.~~	4571

LEASE RENTAL PAYMENTS

4572

The foregoing appropriation item 235-401, Lease Rental	4573
Payments, shall be used to meet all payments at the times they are	4574
required to be made during the period from July 1, 2001, to June	4575
30, 2003, by the Board of Regents pursuant to leases and	4576
agreements made under section 154.21 of the Revised Code, but	4577
limited to the aggregate amount of $563,969,000. Nothing in ~~this~~	4578
~~act~~Am. Sub. H.B. 94 of the 124th General Assembly shall be deemed	4579
to contravene the obligation of the state to pay, without	4580
necessity for further appropriation, from the sources pledged	4581
thereto, the bond service charges on obligations issued pursuant	4582
to section 154.21 of the Revised Code.	4583

~~Of the forgoing appropriation item 235-401, Lease-Rental~~	4584
~~Payments, surplus funds net of encumbrances from the appropriation~~	4585
~~for fiscal year 2002 shall be reappropriated to appropriation item~~	4586
~~235-501, State Share of Instruction, for fiscal year 2003.~~	4587

Sec. 94.07. OHIO INSTRUCTIONAL GRANTS

4588

Notwithstanding section 3333.12 of the Revised Code, in lieu	4589
of the tables in that section, instructional grants for all	4590
full-time students shall be made for fiscal year 2002 using the	4591
tables under this heading.	4592

The tables under this heading prescribe the maximum grant	4593
amounts covering two semesters, three quarters, or a comparable	4594
portion of one academic year. The grant amount for a full-time	4595
student enrolled in an eligible institution for a semester or	4596
quarter in addition to the portion of the academic year covered by	4597
a grant determined under these tables shall be a percentage of the	4598
maximum prescribed in the applicable table. The maximum grant for	4599
a fourth quarter shall be one-third of the maximum amount	4600
prescribed under the table. The maximum grant for a third semester	4601
shall be one-half of the maximum amount prescribed under the	4602
table.	4603

For a full-time student who is a dependent and enrolled in a	4604
nonprofit educational institution that is not a state-assisted	4605
institution and that has a certificate of authorization issued	4606
pursuant to Chapter 1713. of the Revised Code, the amount of the	4607
instructional grant for two semesters, three quarters, or a	4608
comparable portion of the academic year shall be determined in	4609
accordance with the following table:	4610

Private Institution

4611

Table of Grants

4612

	Maximum Grant $5,160		4613
Gross Income	Number of Dependents		4614

5 or more

4615

Under $14,000	$5,160	$5,160	$5,160	$5,160	$5,160	4616
$14,001 - $15,000	4,644	5,160	5,160	5,160	5,160	4617
$15,001 - $16,000	4,116	4,644	5,160	5,160	5,160	4618
$16,001 - $17,000	3,612	4,116	4,644	5,160	5,160	4619
$17,001 - $18,000	3,102	3,612	4,116	4,644	5,160	4620
$18,001 - $21,000	2,586	3,102	3,612	4,116	4,644	4621
$21,001 - $24,000	2,058	2,586	3,102	3,612	4,116	4622
$24,001 - $27,000	1,536	2,058	2,586	3,102	3,612	4623
$27,001 - $30,000	1,272	1,536	2,058	2,586	3,102	4624
$30,001 - $31,000	1,020	1,272	1,536	2,058	2,586	4625
$31,001 - $32,000	930	1,020	1,272	1,536	2,058	4626
$32,001 - $33,000	840	930	1,020	1,272	1,536	4627
$33,001 - $34,000	420	840	930	1,020	1,272	4628
$34,001 - $35,000	--	420	840	930	1,020	4629
$35,001 - $36,000	--	--	420	840	930	4630
$36,001 - $37,000	--	--	--	420	840	4631
$37,001 - $38,000	--	--	--	--	420	4632

For a full-time student who is financially independent and	4633
enrolled in a nonprofit educational institution that is not a	4634
state-assisted institution and that has a certificate of	4635
authorization issued pursuant to Chapter 1713. of the Revised	4636
Code, the amount of the instructional grant for two semesters,	4637
three quarters, or a comparable portion of the academic year shall	4638
be determined in accordance with the following table:	4639

Private Institution

4640

Table of Grants

4641

	Maximum Grant $5,160		4642
Gross Income	Number of Dependents		4643

5 or more

4644

Under $4,500	$5,160	$5,160	$5,160	$5,160	$5,160	$5,160	4645
$4,501 - $5,000	4,644	5,160	5,160	5,160	5,160	5,160	4646
$5,001 - $5,500	4,116	4,644	5,160	5,160	5,160	5,160	4647
$5,501 - $6,000	3,612	4,116	4,644	5,160	5,160	5,160	4648
$6,001 - $6,500	3,102	3,612	4,116	4,644	5,160	5,160	4649
$6,501 - $7,000	2,586	3,102	3,612	4,116	4,644	5,160	4650
$7,001 - $8,000	2,058	2,586	3,102	3,612	4,116	4,644	4651
$8,001 - $9,000	1,536	2,058	2,586	3,102	3,612	4,116	4652
$9,001 - $10,000	1,272	1,536	2,058	2,586	3,102	3,612	4653
$10,001 - $11,500	1,020	1,272	1,536	2,058	2,586	3,102	4654
$11,501 - $13,000	930	1,020	1,272	1,536	2,058	2,586	4655
$13,001 - $14,500	840	930	1,020	1,272	1,536	2,058	4656
$14,501 - $16,000	420	840	930	1,020	1,272	1,536	4657
$16,001 - $19,000	--	420	840	930	1,020	1,272	4658
$19,001 - $22,000	--	--	420	840	930	1,020	4659
$22,001 - $25,000	--	--	--	420	840	930	4660
$25,001 - $30,000	--	--	--	--	420	840	4661
$30,001 - $35,000	--	--	--	--	--	420	4662

For a full-time student who is a dependent and enrolled in an	4663
educational institution that holds a certificate of registration	4664
from the state board of proprietary school registration, the	4665
amount of the instructional grant for two semesters, three	4666
quarters, or a comparable portion of the academic year shall be	4667
determined in accordance with the following table:	4668

Proprietary Institution

4669

Table of Grants

4670

	Maximum Grant $4,374		4671
Gross Income	Number of Dependents		4672

5 or more

4673

Under $14,000	$4,374	$4,374	$4,374	$4,374	$4,374	4674
$14,001 - $15,000	3,948	4,374	4,374	4,374	4,374	4675
$15,001 - $16,000	3,480	3,948	4,374	4,374	4,374	4676
$16,001 - $17,000	3,042	3,480	3,948	4,374	4,374	4677
$17,001 - $18,000	2,634	3,042	3,480	3,948	4,374	4678
$18,001 - $21,000	2,166	2,634	3,042	3,480	3,948	4679
$21,001 - $24,000	1,752	2,166	2,634	3,042	3,480	4680
$24,001 - $27,000	1,338	1,752	2,166	2,634	3,042	4681
$27,001 - $30,000	1,074	1,338	1,752	2,166	2,634	4682
$30,001 - $31,000	858	1,074	1,338	1,752	2,166	4683
$31,001 - $32,000	804	858	1,074	1,338	1,752	4684
$32,001 - $33,000	708	804	858	1,074	1,338	4685
$33,001 - $34,000	354	708	804	858	1,074	4686
$34,001 - $35,000	--	354	708	804	858	4687
$35,001 - $36,000	--	--	354	708	804	4688
$36,001 - $37,000	--	--	--	354	708	4689
$37,001 - $38,000	--	--	--	--	354	4690

For a full-time student who is financially independent and	4691
enrolled in an educational institution that holds a certificate of	4692
registration from the state board of proprietary school	4693
registration, the amount of the instructional grant for two	4694
semesters, three quarters, or a comparable portion of the academic	4695
year shall be determined in accordance with the following table:	4696

Proprietary Institution

4697

Table of Grants

4698

	Maximum Grant $4,374		4699
Gross Income	Number of Dependents		4700

5 or more

4701

Under $4,500	$4,374	$4,374	$4,374	$4,374	$4,374	$4,374	4702
$4,501 - $5,000	3,948	4,374	4,374	4,374	4,374	4,374	4703
$5,001 - $5,500	3,480	3,948	4,374	4,374	4,374	4,374	4704
$5,501 - $6,000	3,042	3,480	3,948	4,374	4,374	4,374	4705
$6,001 - $6,500	2,634	3,042	3,480	3,948	4,374	4,374	4706
$6,501 - $7,000	2,166	2,634	3,042	3,480	3,948	4,374	4707
$7,001 - $8,000	1,752	2,166	2,634	3,042	3,480	3,948	4708
$8,001 - $9,000	1,338	1,752	2,166	2,634	3,042	3,480	4709
$9,001 - $10,000	1,074	1,338	1,752	2,166	2,634	3,042	4710
$10,001 - $11,500	858	1,074	1,338	1,752	2,166	2,634	4711
$11,501 - $13,000	804	858	1,074	1,338	1,752	2,166	4712
$13,001 - $14,500	708	804	858	1,074	1,338	1,752	4713
$14,501 - $16,000	354	708	804	858	1,074	1,338	4714
$16,001 - $19,000	--	354	708	804	858	1,074	4715
$19,001 - $22,000	--	--	354	708	804	858	4716
$22,001 - $25,000	--	--	--	354	708	804	4717
$25,001 - $30,000	--	--	--	--	354	708	4718
$30,001 - $35,000	--	--	--	--	--	354	4719

For a full-time student who is a dependent and enrolled in a	4720
state-assisted educational institution, the amount of the	4721
instructional grant for two semesters, three quarters, or a	4722
comparable portion of the academic year shall be determined in	4723
accordance with the following table:	4724

Public Institution

4725

Table of Grants

4726

	Maximum Grant $2,070		4727
Gross Income	Number of Dependents		4728

5 or more

4729

Under $14,000	$2,070	$2,070	$2,070	$2,070	$2,070	4730
$14,001 - $15,000	1,866	2,070	2,070	2,070	2,070	4731
$15,001 - $16,000	1,644	1,866	2,070	2,070	2,070	4732
$16,001 - $17,000	1,458	1,644	1,866	2,070	2,070	4733
$17,001 - $18,000	1,248	1,458	1,644	1,866	2,070	4734
$18,001 - $21,000	1,020	1,248	1,458	1,644	1,866	4735
$21,001 - $24,000	816	1,020	1,248	1,458	1,644	4736
$24,001 - $27,000	612	816	1,020	1,248	1,458	4737
$27,001 - $30,000	492	612	816	1,020	1,248	4738
$30,001 - $31,000	396	492	612	816	1,020	4739
$31,001 - $32,000	366	396	492	612	816	4740
$32,001 - $33,000	336	366	396	492	612	4741
$33,001 - $34,000	168	336	366	396	492	4742
$34,001 - $35,000	--	168	336	366	396	4743
$35,001 - $36,000	--	--	168	336	366	4744
$36,001 - $37,000	--	--	--	168	336	4745
$37,001 - $38,000	--	--	--	--	168	4746

For a full-time student who is financially independent and	4747
enrolled in a state-assisted educational institution, the amount	4748
of the instructional grant for two semesters, three quarters, or a	4749
comparable portion of the academic year shall be determined in	4750
accordance with the following table:	4751

Public Institution

4752

Table of Grants

4753

	Maximum Grant $2,070		4754
Gross Income	Number of Dependents		4755

5 or more

4756

Under $4,500	$2,070	$2,070	$2,070	$2,070	$2,070	$2,070	4757
$4,501 - $5,000	1,866	2,070	2,070	2,070	2,070	2,070	4758
$5,001 - $5,500	1,644	1,866	2,070	2,070	2,070	2,070	4759
$5,501 - $6,000	1,458	1,644	1,866	2,070	2,070	2,070	4760
$6,001 - $6,500	1,248	1,458	1,644	1,866	2,070	2,070	4761
$6,501 - $7,000	1,020	1,248	1,458	1,644	1,866	2,070	4762
$7,001 - $8,000	816	1,020	1,248	1,458	1,644	1,866	4763
$8,001 - $9,000	612	816	1,020	1,248	1,458	1,644	4764
$9,001 - $10,000	492	612	816	1,020	1,248	1,458	4765
$10,001 - $11,500	396	492	612	816	1,020	1,248	4766
$11,501 - $13,000	366	396	492	612	816	1,020	4767
$13,001 - $14,500	336	366	396	492	612	816	4768
$14,501 - $16,000	168	336	366	396	492	612	4769
$16,001 - $19,000	--	168	336	366	396	492	4770
$19,001 - $22,000	--	--	168	336	366	396	4771
$22,001 - $25,000	--	--	--	168	336	366	4772
$25,001 - $30,000	--	--	--	--	168	336	4773
$30,001 - $35,000	--	--	--	--	--	168	4774

The foregoing appropriation item 235-503, Ohio Instructional	4775
Grants, shall be used to make the payments authorized by division	4776
(C) of section 3333.26 of the Revised Code to the institutions	4777
described in that division. In addition, this appropriation shall	4778
be used to reimburse the institutions described in division (B) of	4779
section 3333.26 of the Revised Code for the cost of the waivers	4780
required by that division.	4781

Of the appropriation item 235-503, Ohio Instructional Grants,	4782
up to $3,800,000 of surplus funds net of encumbrances from the	4783
appropriation for fiscal year 2002 shall be reappropriated to	4784
appropriation item 235-534, Student Workforce Development Grants,	4785
for fiscal year 2003.	4786

WAR ORPHANS SCHOLARSHIPS

4787

The foregoing appropriation item 235-504, War Orphans	4788
Scholarships, shall be used to reimburse state-assisted	4789
institutions of higher education for waivers of instructional fees	4790
and general fees provided by them, to provide grants to	4791
institutions that have received a certificate of authorization	4792
from the Ohio Board of Regents under Chapter 1713. of the Revised	4793
Code, in accordance with the provisions of section 5910.04 of the	4794
Revised Code, and to fund additional scholarship benefits provided	4795
by section 5910.032 of the Revised Code.	4796

PART-TIME STUDENT INSTRUCTIONAL GRANTS

4797

The foregoing appropriation item 235-549, Part-time Student	4798
Instructional Grants, shall be used to support a grant program for	4799
part-time undergraduate students who are Ohio residents and who	4800
are enrolled in degree granting programs.	4801

Eligibility for participation in the program shall include	4802
degree granting educational institutions that hold a certificate	4803
of registration from the State Board of Proprietary School	4804
Registration, and nonprofit institutions that have a certificate	4805
of authorization issued pursuant to Chapter 1713. of the Revised	4806
Code, as well as state-assisted colleges and universities. Grants	4807
shall be given to students on the basis of need, as determined by	4808
the college, which, in making these determinations, shall give	4809
special consideration to single-parent heads-of-household and	4810
displaced homemakers who enroll in an educational degree program	4811
that prepares the individual for a career. In determining need,	4812
the college also shall consider the availability of educational	4813
assistance from a student's employer. It is the intent of the	4814
General Assembly that these grants not supplant such assistance.	4815

Sec. 125. UNCLAIMED FUNDS ~~TRANSER~~TRANSFER

4816

Notwithstanding division (A) of section 169.05 of the Revised	4817
Code, prior to June 30, 2003, upon the request of the Director of	4818
Budget and Management, the Director of Commerce shall transfer to	4819
the General Revenue Fund up to ~~$30,000,000~~$80,800,000 of the	4820
unclaimed funds that have been reported by the holder of unclaimed	4821
funds as provided by section 169.05 of the Revised Code,	4822
irrespective of the allocation of the unclaimed funds under that	4823
section."	4824

Section 12. That existing Sections 16, 16.02, 44, 44.19,	4825
63.07, 63.35, 75.02, 94, 94.02, 94.06, 94.07, and 125 of Am. Sub.	4826
H.B. 94 of the 124th General Assembly are hereby repealed.	4827

Section 13. That Section 13 of Am. Sub. H.B. 94 of the 124th	4828
General Assembly, as amended by Am. Sub. H.B. 524 of the 124th	4829
General Assembly, be amended to read as follows:	4830

" Sec. 13. DAS DEPARTMENT OF ADMINISTRATIVE SERVICES

4831

General Revenue Fund

4832

GRF	100-402	Unemployment Compensation	$	107,713		$	109,114	4833
GRF	100-405	Agency Audit Expenses	$	662,147		$	614,704	4834
GRF	100-406	County & University Human Resources Services	$	850,133		$	838,777	4835
GRF	100-409	Departmental Information Services	$	948,332		$	975,481	4836
GRF	100-414	Ohio Geographically Referenced Information Program	$	512,410		$	510,807	4837
GRF	100-416	Strategic Technology Development Programs	$	3,470,440		$	5,000,000	4838
GRF	100-417	MARCS	$	5,350,344		$	~~6,176,160~~	4839
							4,676,915	4840
GRF	100-418	E-Government Development	$	2,000,000		$	4,000,000	4841
GRF	100-419	Ohio SONET	$	4,527,924		$	1,785,270	4842
GRF	100-420	Innovation Ohio	$	144,000		$	144,000	4843
GRF	100-421	ERP Project Implementation	$	600,000		$	624,000	4844
GRF	100-433	State of Ohio Computer Center	$	5,003,580		$	5,027,234	4845
GRF	100-439	Equal Opportunity Certification Programs	$	817,894		$	861,093	4846
GRF	100-447	OBA - Building Rent Payments	$	96,106,300		$	110,268,500	4847
GRF	100-448	OBA - Building Operating Payments	$	26,098,000		$	26,098,000	4848
GRF	100-449	DAS - Building Operating Payments	$	5,126,955		$	5,126,968	4849
GRF	100-451	Minority Affairs	$	119,706		$	118,043	4850
GRF	100-734	Major Maintenance	$	70,224		$	68,376	4851
GRF	102-321	Construction Compliance	$	1,392,590		$	1,396,506	4852
GRF	130-321	State Agency Support Services	$	3,632,427		$	3,740,888	4853
TOTAL GRF General Revenue Fund			$	157,541,119		$	~~173,483,921~~	4854
			171,984,676		4855

General Services Fund Group

4856

112	100-616	DAS Administration	$	5,243,105	$	5,503,547	4857
115	100-632	Central Service Agency	$	1,259,438	$	376,844	4858
117	100-644	General Services Division - Operating	$	5,790,000	$	7,091,000	4859
122	100-637	Fleet Management	$	1,600,913	$	1,652,189	4860
125	100-622	Human Resources Division - Operating	$	23,895,125	$	24,640,311	4861
127	100-627	Vehicle Liability Insurance	$	3,373,835	$	3,487,366	4862
128	100-620	Collective Bargaining	$	3,292,859	$	3,410,952	4863
130	100-606	Risk Management Reserve	$	185,900	$	197,904	4864
131	100-639	State Architect's Office	$	7,504,787	$	7,772,789	4865
132	100-631	DAS Building Management	$	10,887,913	$	11,362,872	4866
188	100-649	Equal Opportunity Programs	$	1,214,691	$	1,253,311	4867
201	100-653	General Services Resale Merchandise	$	1,779,000	$	1,833,000	4868
210	100-612	State Printing	$	6,648,503	$	6,928,823	4869
4H2	100-604	Governor's Residence Gift	$	22,628	$	23,194	4870
4P3	100-603	Departmental MIS Services	$	7,447,713	$	7,761,365	4871
427	100-602	Investment Recovery	$	4,204,735	$	4,179,184	4872
5C2	100-605	MARCS Development	$	3,429,947	$	4,475,190	4873
5C3	100-608	Skilled Trades	$	2,237,200	$	2,332,464	4874
5D7	100-621	Workforce Development	$	12,000,000	$	12,000,000	4875
5L7	100-610	Professional Development	$	2,700,000	$	2,700,000	4876
TOTAL GSF General Services Fund							4877
Group			$	104,718,292	$	108,982,305	4878

Intragovernmental Service Fund Group

4879

133	100-607	Information Technology Fund	$	104,482,097	$	111,387,436	4880
4N6	100-617	Major Computer Purchases	$	12,000,000	$	4,500,000	4881
TOTAL ISF Intragovernmental							4882
Service Fund Group			$	116,482,097	$	115,887,436	4883

Agency Fund Group

4884

113	100-628	Unemployment Compensation	$	3,500,000	$	3,577,000	4885
124	100-629	Payroll Deductions	$	1,877,100,000	$	1,999,100,000	4886
TOTAL AGY Agency Fund Group			$	1,880,600,000	$	2,002,677,000	4887

Holding Account Redistribution Fund Group

4888

R08	100-646	General Services Refunds	$	20,000		$	20,000	4889
TOTAL 090 Holding Account								4890
Redistribution Fund Group			$	20,000		$	20,000	4891
TOTAL ALL BUDGET FUND GROUPS			$	2,259,361,508		$	~~2,401,050,662~~	4892
			2,399,551,417"		4893

Section 14. That existing Section 13 of Am. Sub. H.B. 94 of	4895
the 124th General Assembly, as amended by Am. Sub. H.B. 524 of the	4896
124th General Assembly, is hereby repealed.	4897

Section 15. That Sections 63 and 63.37 of Am. Sub. H.B. 94 of	4898
the 124th General Assembly, as amended by Am. Sub. H.B. 299 of	4899
the 124th General Assembly, be amended to read as follows:	4900

" Sec. 63. JFS DEPARTMENT OF JOB AND FAMILY SERVICES

4901

General Revenue Fund

4902

GRF	600-100	Personal Services					4903
		State	$	56,614,143	$	58,715,838	4904
		Federal	$	18,645,558	$	19,317,882	4905
		Personal Services Total	$	75,259,701	$	78,033,720	4906
GRF	600-200	Maintenance					4907
		State	$	30,439,164	$	24,320,541	4908
		Federal	$	7,295,237	$	5,828,810	4909
		Maintenance Total	$	37,734,401	$	30,149,351	4910
GRF	600-300	Equipment					4911
		State	$	5,469,830	$	979,504	4912
		Federal	$	179,026	$	32,059	4913
		Equipment Total	$	5,648,856	$	1,011,563	4914
GRF	600-402	Electronic Benefits Transfer (EBT)					4915
		State	$	7,551,305	$	7,715,079	4916
		Federal	$	7,551,305	$	7,715,079	4917
		EBT Total	$	15,102,610	$	15,430,158	4918
GRF	600-410	TANF State	$	268,636,561	$	268,619,061	4919
GRF	600-413	Day Care Match/Maintenance of Effort	$	84,120,606	$	84,120,606	4920
GRF	600-416	Computer Projects					4921
		State	$	137,583,171	$	142,908,736	4922
		Federal	$	32,665,206	$	34,770,353	4923
		Computer Projects Total	$	170,248,377	$	177,679,089	4924
GRF	600-420	Child Support Administration	$	7,919,511	$	7,885,309	4925
GRF	600-426	Children's Health Insurance Plan (CHIP)					4926
		State	$	13,571,338	$	15,770,373	4927
		Federal	$	33,535,007	$	38,968,860	4928
		CHIP Total	$	47,106,345	$	54,739,233	4929
GRF	600-427	Child and Family Services Activities	$	7,189,086	$	7,000,427	4930
GRF	600-435	Unemployment Compensation Review Commission	$	3,759,151	$	3,785,380	4931
GRF	600-436	Medicaid Systems Enhancements	$	4,445,384	$	1,853,611	4932
GRF	600-502	Child Support Match	$	17,383,992	$	16,814,103	4933
GRF	600-504	Non-TANF County Administration	$	70,554,373	$	68,697,679	4934
GRF	600-511	Disability Assistance/Other Assistance	$	84,662,017	$	98,152,408	4935
GRF	600-512	Non-TANF Emergency Assistance	$	1,079,000	$	1,079,000	4936
GRF	600-525	Health Care/Medicaid					4937
		State	$	2,908,181,745	$	3,112,834,875	4938
		Federal	$	4,174,579,446	$	4,460,972,607	4939
		Health Care Total	$	7,082,761,191	$	7,573,807,482	4940
GRF	600-527	Child Protective Services	$	59,592,059	$	64,047,479	4941
GRF	600-528	Adoption Services					4942
		State	$	33,085,023	$	37,697,562	4943
		Federal	$	32,158,564	$	36,641,941	4944
		Adoption Services Total	$	65,243,587	$	74,339,503	4945
GRF	600-534	Adult Protective Services	$	2,850,975	$	2,775,950	4946
GRF	600-552	County Social Services	$	11,354,550	$	11,055,746	4947
TOTAL GRF General Revenue Fund							4948
		State	$	3,816,042,984	$	4,036,829,267	4949
		Federal	$	4,306,609,349	$	4,604,247,591	4950
		GRF Total	$	8,122,652,333	$	8,641,076,858	4951

General Services Fund Group

4952

4A8	600-658	Child Support Collections	$	42,389,027	$	42,389,027	4953
4R4	600-665	BCII Service Fees	$	124,522	$	136,974	4954
5C9	600-671	Medicaid Program Support	$	50,846,239	$	59,226,893	4955
5R1	600-677	County Computers	$	5,000,000	$	5,000,000	4956
613	600-645	Training Activities	$	1,462,626	$	1,157,525	4957
TOTAL GSF General Services							4958
Fund Group			$	99,822,414	$	107,910,419	4959

Federal Special Revenue Fund Group

4960

3A2	600-641	Emergency Food Distribution	$	2,018,844		$	2,018,844	4961
3D3	600-648	Children's Trust Fund Federal	$	2,040,524		$	2,040,524	4962
3F0	600-623	Health Care Federal	$	260,504,926		$	~~281,562,040~~	4963
							321,924,490	4964
3F0	600-650	Hospital Care Assurance Match	$	320,551,643		$	332,807,785	4965
3G5	600-655	Interagency Reimbursement	$	852,461,818		$	860,986,436	4966
3G9	600-657	Special Activities Self Sufficiency	$	522,500		$	190,000	4967
3H7	600-617	Day Care Federal	$	299,156,430		$	337,848,130	4968
3N0	600-628	IV-E Foster Care Maintenance	$	152,981,760		$	173,963,142	4969
3S5	600-622	Child Support Projects	$	534,050		$	534,050	4970
3V0	600-688	Workforce Investment Act	$	128,476,093		$	128,476,093	4971
3V4	600-678	Federal Unemployment Programs	$	74,025,525		$	~~74,025,525~~	4972
							125,025,525	4973
3V4	600-679	Unemployment Compensation Review Commission - Federal	$	2,286,421		$	2,286,421	4974
3V6	600-689	TANF Block Grant	$	654,410,661		$	677,098,311	4975
3V6	600-690	Wellness	$	14,337,515		$	14,337,515	4976
316	600-602	State and Local Training	$	10,166,587		$	10,325,460	4977
327	600-606	Child Welfare	$	34,594,191		$	34,592,977	4978
331	600-686	Federal Operating	$	41,600,896		$	41,640,897	4979
365	600-681	JOB Training Program	$	25,000,000		$	5,469,259	4980
384	600-610	Food Stamps and State Administration	$	160,371,358		$	161,716,857	4981
385	600-614	Refugee Services	$	4,388,503		$	4,559,632	4982
395	600-616	Special Activities/Child and Family Services	$	9,491,000		$	9,491,000	4983
396	600-620	Social Services Block Grant	$	51,195,100		$	51,297,478	4984
397	600-626	Child Support	$	248,001,590		$	247,353,041	4985
398	600-627	Adoption Maintenance/ Administration	$	277,806,175		$	341,298,661	4986
TOTAL FED Federal Special Revenue								4987
Fund Group			$	3,626,924,110		$	~~3,795,920,078~~	4988
			3,887,282,528		4989

State Special Revenue Fund Group

4990

198	600-647	Children's Trust Fund	$	4,368,785		$	4,379,333	4991
3W3	600-695	Adult Protective Services	$	120,227		$		4992
3W3	600-696	Non-TANF Adult Assistance	$	1,000,000		$		4993
3W8	600-638	Hippy Program	$	62,500		$		4994
3W9	600-640	Adoption Connection	$	50,000		$		4995
4A9	600-607	Unemployment Compensation Admin Fund	$	9,420,000		$	9,420,000	4996
4E3	600-605	Nursing Home Assessments	$	95,511		$	95,511	4997
4E7	600-604	Child and Family Services Collections	$	145,805		$	149,450	4998
4F1	600-609	Foundation Grants/Child and Family Services	$	116,400		$	119,310	4999
4J5	600-613	Nursing Facility Bed Assessments	$	31,179,798		$	31,279,798	5000
4J5	600-618	Residential State Supplement Payments	$	15,700,000		$	15,700,000	5001
4K1	600-621	ICF/MR Bed Assessments	$	21,604,331		$	22,036,418	5002
4R3	600-687	Banking Fees	$	592,937		$	592,937	5003
4V2	600-612	Child Support Activities	$	124,993		$	124,993	5004
4Z1	600-625	HealthCare Compliance	$	10,000,000		$	10,000,000	5005
5A5	600-685	Unemployment Benefit Automation	$	19,607,027		$	13,555,667	5006
5E6	600-634	State Option Food Stamps	$	6,000,000		$	6,000,000	5007
5P4	600-691	TANF Child Welfare	$	7,500,000		$	7,500,000	5008
5P5	600-692	Health Care Services	$	223,847,498		$	255,386,713	5009
5R2	600-608	Medicaid-Nursing Facilities	$	59,462,415		$	~~79,283,220~~	5010
							105,136,444	5011
5U3	600-654	Health Care Services Administration	$	0		$	3,419,405	5012
651	600-649	Hospital Care Assurance Program Fund	$	222,480,109		$	233,384,431	5013
TOTAL SSR State Special Revenue								5014
Fund Group			$	633,478,336		$	~~690,240,508~~	5015
			719,513,137		5016

Agency Fund Group

5017

192	600-646	Support Intercept - Federal	$	80,000,000	$	82,000,000	5018
5B6	600-601	Food Stamp Intercept	$	5,283,920	$	5,283,920	5019
583	600-642	Support Intercept - State	$	20,162,335	$	20,565,582	5020
TOTAL AGY Agency Fund Group			$	105,446,255	$	107,849,502	5021

Holding Account Redistribution Fund Group

5022

R12	600-643	Refunds and Audit Settlements	$	200,000		$	200,000	5023
R13	600-644	Forgery Collections		700,000			700,000	5024
TOTAL 090 Holding Account Redistribution Fund Group			$	900,000		$	900,000	5025
TOTAL ALL BUDGET FUND GROUPS			$	12,589,223,448		$	~~13,343,897,365~~	5026
			13,464,532,444		5027

Sec. 63.37. NURSING FACILITY STABILIZATION FUND

5029

(A) As used in this section:

5030

(1) "Inpatient days" and "nursing facility" have the same	5031
meanings as in section 5111.20 of the Revised Code.	5032

(2) "Medicaid day" means all days during which a resident	5033
who is a Medicaid recipient occupies a bed in a nursing facility	5034
that is included in the facility's certified capacity under Title	5035
XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C.A.	5036
1396, as amended. Therapeutic or hospital leave days for which	5037
payment is made under section 5111.33 of the Revised Code are	5038
considered Medicaid days proportionate to the percentage of the	5039
nursing facility's per resident per day rate paid for those days.	5040

(B) The Department of Job and Family Services shall use	5041
money in the Nursing Facility Stabilization Fund created under	5042
section 3721.56 of the Revised Code to do all of the following:	5043

(1) Make payments to nursing facilities under sections	5044
5111.20 to 5111.32 of the Revised Code;	5045

(2) Beginning with payments made to nursing facilities in	5046
August 2001, make payments to each nursing facility for each	5047
Medicaid day in fiscal ~~years~~year 2002 ~~and 2003~~ in an amount equal	5048
to sixty-nine and seven-tenths per cent of the franchise permit	5049
fee the nursing facility pays under section 3721.53 of the Revised	5050
Code for the fiscal year the department makes the payment divided	5051
by the nursing facility's inpatient days for the calendar year	5052
preceding the calendar year in which that fiscal year begins;	5053

(3) Beginning with payments made to nursing facilities in	5054
August 2002, make payments to each nursing facility for each	5055
Medicaid day in fiscal years 2003, 2004, and 2005 in an amount	5056
equal to seventy-six and seventy-four-hundredths per cent of the	5057
franchise permit fee the nursing facility pays under section	5058
3721.53 of the Revised Code for the fiscal year the department	5059
makes the payment divided by the nursing facility's inpatient days	5060
for the calendar year preceding the calendar year in which that	5061
fiscal year begins;	5062

(4) Beginning with payments made to nursing facilities in	5063
August 2001, make payments to each nursing facility for fiscal	5064
~~years~~year 2002 ~~and 2003~~ in an amount equal to one dollar and	5065
fifty cents per Medicaid day for the purpose of enhancing quality	5066
of care;	5067

(5) Beginning with payments made to nursing facilities in	5068
August 2002, make payments to each nursing facility for fiscal	5069
years 2003, 2004, and 2005 in an amount equal to two dollars and	5070
twenty-five cents per Medicaid day for the purpose of enhancing	5071
quality of care.	5072

(C) Any money remaining in the Nursing Facility	5073
Stabilization Fund after payments specified in division (B) of	5074
this section are made for fiscal years 2002 ~~and~~, 2003, 2004, and	5075
2005 shall be retained in the fund. Any interest or other	5076
investment proceeds earned on money in the fund shall be credited	5077
to the fund and used to make payments in accordance with division	5078
(B) of this section.	5079

(D) Notwithstanding division (N) of section 5111.20 of the	5080
Revised Code, the Department of Job and Family Services, in making	5081
Medicaid payments to a nursing facility under sections 5111.20 to	5082
5111.32 of the Revised Code, shall ~~exclude~~do both of the	5083
following:	5084

(1) Exclude from a nursing facility's other protected costs	5085
the cost of sixty-nine and seven-tenths per cent of the franchise	5086
permit fee that the nursing facility pays under section 3721.53 of	5087
the Revised Code for fiscal ~~years~~year 2002 ~~and 2003~~ if the	5088
nursing facility receives payments under division (B)(2) of this	5089
section for sixty-nine and seven-tenths per cent of those	5090
franchise permit fees;	5091

(2) Exclude from a nursing facility's other protected costs	5092
the cost of seventy-six and seventy-four-hundredths per cent of	5093
the franchise permit fee that the nursing facility pays under	5094
section 3721.53 of the Revised Code for fiscal years 2003, 2004,	5095
and 2005 if the nursing facility receives payments under division	5096
(B)(2) of this section for seventy-six and seventy-four-hundredths	5097
per cent of those franchise permit fees.	5098

(E) The limitation of Section 230 of Am. Sub. H.B. 94 of the	5099
124th General Assembly is not applicable to the amendments made by	5100
this act to this section.""	5101

Section 16. That existing Sections 63 and 63.37 of Am. Sub.	5102
H.B. 94 of the 124th General Assembly, as amended by Am. Sub.	5103
H.B. 299 of the 124th General Assembly, are hereby repealed.	5104

Section 17. That Section 29 of Am. Sub. H.B. 405 of the 124th	5105
General Assembly be amended to read as follows:	5106

" Sec. 29. BUDGET STABILIZATION FUND TRANSFERS

5107

(A) Notwithstanding section 131.43 and division (D) of	5108
section 127.14 of the Revised Code, the Director of Budget and	5109
Management may, with Controlling Board approval, transfer up to	5110
$248 million from the Budget Stabilization Fund to the General	5111
Revenue Fund during the 2002-2003 biennium to help ensure that the	5112
available revenue receipts and balances in the General Revenue	5113
Fund are not less than the appropriations for each fiscal year.	5114

(B) Notwithstanding section 131.43 and division (D) of	5115
section 127.14 of the Revised Code, the Director of Budget and	5116
Management shall transfer, not later than 30 days after the	5117
effective date of this section, $8.0 million from the Budget	5118
Stabilization Fund to the General Revenue Fund. ~~These funds~~Of the	5119
amount transferred, $2.0 million shall be used for emergency	5120
purposes, to include, but not be limited to, the Department of	5121
Health and Department of Agriculture for anthrax and bioterrorism	5122
testing, the Adjutant General for costs associated with the	5123
deployment of troops, armory maintenance, equipment costs and	5124
capital needs, the Department of Public Safety, security, and	5125
other emergency purpose expenses. These amounts are hereby	5126
appropriated for General Revenue Fund appropriation line items	5127
established by the Director of Budget and Management.	5128

Prior to utilizing these funds, the appropriate agency must	5129
receive the approval of the Controlling Board. Any of these funds	5130
unspent in fiscal year 2002 shall be transferred to fiscal year	5131
2003 by the Director of Budget and Management for the same purpose	5132
as in fiscal year 2002.	5133

~~The~~Of the $2.0 million transferred for emergency purposes as	5134
specified in this division, the unobligated and unencumbered	5135
balance of these funds as of June 30, 2003, shall be transferred	5136
back to the Budget Stabilization Fund."	5137

Section 18. That existing Section 29 of Am. Sub. H.B. 405 of	5138
the 124th General Assembly is hereby repealed.	5139

Section 19. That Section 31 of Am. Sub. H.B. 405 of the 124th	5140
General Assembly is hereby repealed. This repeal is not subject to	5141
the referendum. Therefore, under Ohio Constitution, Article II,	5142
Section 1d, the repeal goes into immediate effect.	5143

Section 20. In addition to any amounts that have been	5144
authorized for transfer from the Budget Stabilization Fund to the	5145
General Revenue Fund in fiscal year 2002, there is hereby	5146
appropriated in fiscal year 2002 an amount deemed necessary by the	5147
Director of Budget and Management, from the Budget Stabilization	5148
Fund (Fund 013), to appropriation item 001-601, GRF Shortfall	5149
Contingency, for the purpose of overcoming the current shortfall	5150
of revenues to the General Revenue Fund. The Director shall make	5151
disbursements, using an intrastate transfer voucher, from the	5152
foregoing appropriation to the General Revenue Fund, of such	5153
amounts as are necessary to ensure that the unobligated and	5154
unencumbered balance in the General Revenue Fund at the end of	5155
fiscal year 2002 is not more than $100,000,000.	5156

In addition to any amounts that have been authorized for	5157
transfer from the Budget Stabilization Fund to the General Revenue	5158
Fund in fiscal year 2003, there is hereby appropriated in fiscal	5159
year 2003 an amount deemed necessary by the Director of Budget and	5160
Management, from the Budget Stabilization Fund (Fund 013) to	5161
appropriation item 001-601, GRF Shortfall Contingency. The	5162
Director shall make disbursements, using an intrastate transfer	5163
voucher, from the foregoing appropriation to the General Revenue	5164
Fund, of such amounts as are necessary to ensure that the	5165
unobligated and unencumbered balance in the General Revenue Fund	5166
at the end of fiscal year 2003 is not more than $100,000,000.	5167

Section 21. ADDITIONAL TRANSFERS TO THE GENERAL REVENUE	5168
FUND	5169

Notwithstanding any other provision of law to the contrary,	5170
including Am. Sub. H.B. 94 and Am. Sub. H.B. 405 both of the 124th	5171
General Assembly, as subsequently amended, during fiscal years	5172
2002 and 2003, the Director of Budget and Management is hereby	5173
authorized to make such transfers of cash to the General Revenue	5174
Fund from funds created in uncodified law or in Title 1, 3, 5, 7,	5175
9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31, 33, 35, 37, 39, 41,	5176
43, 45, 47, 49, 51, 53, or 55, Chapter 5701., 5703., 5705., 5707.,	5177
5709., 5711., 5713., 5715., 5717., 5719., 5721., 5723., 5725.,	5178
5727., 5729., 5731., 5733., 5735., 5737., 5739., 5741., 5743.,	5179
5745., 5749., 5751., or 5753., or Title 59, 61, or 63 of the	5180
Revised Code that do not consist of federal funds or of funds from	5181
which transfers for general purposes are constitutionally	5182
restricted, as are necessary to ensure that expenditures from the	5183
General Revenue Fund do not exceed amounts credited to it. The	5184
Director shall issue any directives to state agencies that are	5185
necessary to accomplish the purposes of this section.	5186

Section 22. On or before January 1, 2003, the Director of	5187
Budget and Management shall reduce fiscal year 2003 General	5188
Revenue Fund appropriations for the Department of Education by	5189
$30,000,000. The following GRF appropriation items are exempt from	5190
the reduction: 200-406, Head Start; 200-500, School Finance	5191
Equity; 200-501, Base Cost Funding; 200-502, Pupil Transportation;	5192
200-511, Auxillary Services; 200-520, Disadvantaged Pupil Impact	5193
Aid; 200-521, Gifted Pupil Program; 200-525, Parity Aid; 200-532,	5194
Nonpublic Administration Cost Reimbursement; 200-534,	5195
Desegregation Costs; 200-540, Special Education Enhancements;	5196
200-545, Career-Technical Education Enhancements; 200-546,	5197
Charge-Off Supplement; 200-553, County MR/DD Boards Transportation	5198
Operating; 200-901, Property Tax Allocation – Education; and	5199
200-906, Tangible Tax Exemption – Education.	5200

Section 23. Not later than July 10, 2002, the Director of	5201
Budget and Management shall reduce fiscal year 2003 General	5202
Revenue Fund appropriations made to the Department of	5203
Rehabilitation and Correction appropriation item 501-321,	5204
Institutional Operations, by $10,000,000. This appropriations	5205
reduction is in addition to any other General Revenue Fund	5206
appropriations reductions made to the Department of Rehabilitation	5207
and Correction appropriations in fiscal year 2003, including but	5208
not limited to any General Revenue Fund appropriations reductions	5209
imposed by executive order.	5210

Section 24. There is hereby appropriated out of funds made	5211
available to the state under Section 903(d) of the Social Security	5212
Act, as amended, the sum of $51,000,000 to be used under the	5213
direction of the Department of Job and Family Services to pay for	5214
administrative activities for the Unemployment Insurance Program,	5215
employment services, and other allowable expenditures under	5216
Section 903(d) of the Social Security Act, as amended.	5217

The amounts obligated pursuant to this section shall not	5218
exceed at any time the amount by which the aggregate of the	5219
amounts transferred to the account of the state pursuant to	5220
Section 903(d) of the Social Security Act, as amended, exceeds the	5221
aggregate of the amounts obligated for administration and paid out	5222
for benefits and required by law to be charged against the amounts	5223
transferred to the account of the state.	5224

Of the appropriation item 600-678, Federal Unemployment	5225
Programs, in Section 63 of Am. Sub. H.B. 94 of the 124th General	5226
Assembly, as amended, up to $18,000,000 in fiscal year 2003 shall	5227
be used by the Department of Job and Family Services to reimburse	5228
the General Revenue Fund, through state intrastate transfer	5229
vouchers, for expenses incurred on or after the date of enactment	5230
of this section from the General Revenue Fund for the	5231
aforementioned programs as reported to the federal government as	5232
allowable expenditures.	5233

Section 25. There is hereby created the Economic Development	5234
Study Committee consisting of four members appointed by the	5235
President of the Senate and three members appointed by the Speaker	5236
of the House of Representatives. Of the members appointed by the	5237
President, one shall represent retail merchants, one the Ohio	5238
Chamber of Commerce, one the Ohio Manufacturers Association, and	5239
one the Interuniversity Council. Of the members appointed by the	5240
Speaker, one shall represent the Ohio Farm Bureau Federation, one	5241
the labor unions of the state, and one the National Federation of	5242
Independent Businesses. At the first meeting of the committee,	5243
the members shall elect a chairperson and vice chairperson.	5244
Members shall serve without compensation. The committee shall	5245
study the needs of the economy of the state and shall submit a	5246
written report to the President, the Speaker, and the minority	5247
leaders of the House and Senate not later than January 31, 2003.	5248
The report shall address the challenges of the ongoing revenue	5249
shortfall of the state and recommend measures to increase	5250
investment in high technology in the state, encourage economic	5251
growth and the creation of jobs, improve primary, secondary, and	5252
higher education, and achieve other goals important to the	5253
vitality of the state's economy. Upon submitting its report, the	5254
committee shall cease to exist.	5255

Section 26. (A) The aggregate amount of appropriations from	5256
the General Revenue Fund for fiscal years 2004 and 2005 shall not	5257
exceed the aggregate amount of spending from the General Revenue	5258
Fund for fiscal years 2002 and 2003, other than appropriations and	5259
spending for the following purposes:	5260

(1) Higher education;

5261

(2) Primary and secondary education;

5262

(3) Medicaid;

5263

(4) Debt service;

5264

(5) Property tax relief.

5265

(B) There is hereby created the Budget Study Committee	5266
consisting of five members appointed from the House of	5267
Representatives and five members appointed from the Senate. The	5268
members of the House of Representatives shall be appointed by the	5269
Speaker of the House of Representatives and the members of the	5270
Senate shall be appointed by the President of the Senate. Of the	5271
five members from each house, two shall be of the minority party.	5272
All appointments shall be made by November 6, 2002. The Committee	5273
shall conduct its first meeting not later than November 15, 2002.	5274
At the first meeting, the Committee shall select a chairperson and	5275
vice chairperson.	5276

The Committee shall conduct a comprehensive study of the five	5277
areas of state spending set forth in divisions (A)(1) to (5) of	5278
this section for the purpose of making recommendations that, if	5279
implemented, will improve efficiency and maintain or exceed	5280
current levels of service in those areas. The Committee shall	5281
issue a report to the General Assembly with its recommendations	5282
not later than March 31, 2003.	5283

Section 27. Notwithstanding section 3702.68 of the Revised	5284
Code, the Director of Health may accept for review under section	5285
3702.52 of the Revised Code an application for a certificate of	5286
need approving the relocation of up to twenty-four existing	5287
nursing home beds in Jackson County to Gallia County.	5288

Section 28. The Director of Job and Family Services, on or	5289
before October 1, 2002, shall establish the Mahoning Valley	5290
Education and Training Institute at Youngstown State University.	5291
The purpose of the program shall be for retraining of existing	5292
workers and providing the education and training for new entrants	5293
into the regional labor market.	5294

Section 29. For any federal funds that are received under	5295
"The No Child Left Behind Act (PL107-110)" that the Department of	5296
Education has discretionary authority to spend, the Department	5297
shall submit a spending plan to the Controlling Board. The	5298
Department shall not expend any of these funds before obtaining	5299
approval of the spending plan by the Controlling Board.	5300

Section 30. The Ohio Public Facilities Commission, upon	5301
request by the Board of Regents, is hereby authorized to issue and	5302
sell, in accordance with Section 2n of Article VIII, Ohio	5303
Constitution, and sections 151.01 and 151.04 of the Revised Code,	5304
original obligations of the State of Ohio, in an aggregate	5305
principal amount not to exceed $50,000,000. These obligations, in	5306
addition to the original issuance of obligations heretofore	5307
authorized by prior acts of the General Assembly, shall be issued	5308
and sold from time to time and in amounts necessary to ensure	5309
sufficient moneys to the credit of the Higher Education	5310
Improvement Fund (Fund 034) to pay costs charged to that fund	5311
associated with previously authorized capital facilities and the	5312
capital facilities in Section 34 of this act for state-supported	5313
and state-assisted institutions of higher education, as estimated	5314
by the Director of Budget and Management.	5315

Section 31. All items in this section are hereby appropriated	5316
as designated out of moneys in the state treasury to the credit of	5317
the Higher Education Improvement Fund (Fund 034). All	5318
appropriations made in this section are for fiscal years 2003 and	5319
2004. The appropriations made in this section are in addition to	5320
any other capital appropriations made for fiscal years 2003 and	5321
2004.	5322

Appropriations

5323

BOR BOARD OF REGENTS

5324

Higher Education Improvement Fund					5325
034	CAP-068	Third Frontier Project	$	50,000,000	5326
Total 034 Higher Education Improvement Fund			$	50,000,000	5327
TOTAL ALL BUDGET FUND GROUPS THIRD FRONTIER PROJECT			$	50,000,000	5328

THIRD FRONTIER PROJECT

5329

The foregoing appropriation item CAP-068, Third Frontier	5330
Project, shall be used to acquire, renovate, or construct	5331
facilities and purchase equipment for research programs technology	5332
development, product development, and commercialization programs	5333
at or involving state-supported and state-assisted institutions of	5334
higher education. The funds shall be used to make grants, awarded	5335
on a competitive basis, and shall be administered by the	5336
Department of Development. Expenditure of these funds shall	5337
comply with Section 2n of Article VIII, Ohio Constitution, and	5338
sections 151.01 and 151.04 of the Revised Code for the period	5339
beginning July 1, 2002, and ending June 30, 2004.	5340

The Department of Development shall develop guidelines	5341
relative to the application for and selection of projects funded	5342
from appropriation item CAP-068, Third Frontier Project. The	5343
guidelines shall be developed in consultation with the Board of	5344
Regents, the Governor's Science and Technology Advisor, and other	5345
interested parties at the discretion of the Department of	5346
Development. The Board of Regents and all state-assisted and	5347
state-supported institutions of higher education shall take all	5348
actions necessary to implement grants awarded by the Department of	5349
Development.	5350

The foregoing capital appropriation item, CAP-068, Third	5351
Frontier Project, for which an appropriation is made from the	5352
Higher Education Improvement Fund (Fund 034) is determined to	5353
consist of capital improvements and capital facilities for	5354
state-supported and state-assisted institutions of higher	5355
education, and is designated for the capital facilities to which	5356
proceeds of obligations in the Higher Education Improvement Fund	5357
(Fund 034) are to be applied.	5358

Within the limits set forth in this section, the Director of	5359
Budget and Management shall establish accounts indicating the	5360
source and amount of funds for each appropriation made in this	5361
section, and shall determine the form and manner in which	5362
appropriation accounts shall be maintained. Expenditures from	5363
appropriations contained in this section shall be accounted for as	5364
though made in the 2002-2004 biennial capital appropriations act	5365
of the 124th General Assembly.	5366

The appropriations made in this section are subject to all	5367
provisions of the 2002-2004 biennial capital appropriations act of	5368
the 124th General Assembly that are generally applicable to such	5369
appropriations.	5370

Section 32. (A) Notwithstanding section 183.02 of the Revised	5371
Code and in addition to any amounts that have been authorized for	5372
transfer from the Tobacco Master Settlement Agreement Fund (Fund	5373
087) to the General Revenue Fund in fiscal year 2002, there is	5374
hereby appropriated in fiscal year 2002, $180,000,000 from the	5375
Tobacco Master Settlement Agreement Fund (Fund 087) to	5376
appropriation item 001-602, GRF Revenue Supplement, for the	5377
purpose of overcoming the current shortfall of revenues to the	5378
General Revenue Fund. The Director shall make disbursements,	5379
using an intrastate transfer voucher, from the foregoing	5380
appropriation to the General Revenue Fund.	5381

Of the tobacco revenue that is credited to the Tobacco Master	5382
Settlement Agreement Fund in fiscal year 2002, the share that is	5383
determined pursuant to section 183.02 of the Revised Code to be	5384
the amount transferred by the Director of Budget and Management	5385
from the Tobacco Master Settlement Agreement Fund to the Education	5386
Facilities Trust Fund (Fund N87) shall be reduced by the amount	5387
that is appropriated from the Tobacco Master Settlement Agreement	5388
Fund to appropriation item 001-602, GRF Revenue Supplement, in	5389
accordance with this section.	5390

(B) Notwithstanding section 183.02 of the Revised Code and	5391
in addition to any amounts that have been authorized for transfer	5392
from the Tobacco Master Settlement Agreement Fund (Fund 087) to	5393
the General Revenue Fund in fiscal year 2003, there is hereby	5394
a3propriated in fiscal year 2003, $165,000,000 from the Tobacco	5395
Master Settlement Agreement Fund (Fund 087) to appropriation item	5396
001-602, GRF Revenue Supplement, for the purpose of overcoming the	5397
current shortfall of revenues to the General Revenue Fund. The	5398
Director shall make disbursements, using an intrastate transfer	5399
voucher, from the foregoing appropriation to the General Revenue	5400
Fund.	5401

Of the tobacco revenue that is credited to the Tobacco Master	5402
Settlement Agreement Fund in fiscal year 2003, the share that is	5403
determined pursuant to section 183.02 of the Revised Code to be	5404
the amount transferred by the Director of Budget and Management	5405
from the Tobacco Master Settlement Agreement Fund to the Education	5406
Facilities Trust Fund (Fund N87) shall be reduced by the amount	5407
that is appropriated from the Tobacco Master Settlement Agreement	5408
Fund to appropriation item 001-602, GRF Revenue Supplement, in	5409
accordance with this section.	5410

Section 33. All items set forth in this section are hereby	5411
appropriated out of any moneys in the state treasury to the credit	5412
of the School Building Program Assistance Fund (Fund 032), created	5413
under section 3318.25 of the Revised Code, derived from the	5414
proceeds of obligations heretofore and herein authorized to pay	5415
the cost of facilities for a system of common schools throughout	5416
the state for the period beginning July 1, 2002, and ending June	5417
30, 2004. The appropriation shall be in addition to any other	5418
appropriation for this purpose.	5419

SCHOOL FACILITIES COMMISSION

5420

CAP-770	School Building Program Assistance	$	345,000,000	5421
Total School Facilities Commission		$	345,000,000	5422
Total School Building Program Assistance Fund		$	345,000,000	5423

SCHOOL BUILDING PROGRAM ASSISTANCE

5424

The foregoing appropriation item CAP-770, School Building	5425
Program Assistance, shall be used by the School Facilities	5426
Commission to provide funding to school districts that receive	5427
conditional approval from the Commission pursuant to Chapter 3318.	5428
of the Revised Code.	5429

Expenditures from appropriations contained in this section	5430
may be accounted for as though made in the main capital	5431
appropriations act for the fiscal year 2003-2004 biennium enacted	5432
by the 124th General Assembly. The School Facilities Commission	5433
shall not commit any of the appropriations made in this section	5434
until after July 1, 2002.	5435

Section 34. The Ohio Public Facilities Commission is hereby	5436
authorized to issue and sell, in accordance with the provisions of	5437
Section 2n of Article VIII, Ohio Constitution, and Chapter 151.	5438
and particularly sections 151.01 and 151.03 of the Revised Code,	5439
original obligations in an aggregate principal amount not to	5440
exceed $345,000,000 to pay the costs associated with previously	5441
authorized capital facilities and the capital facilities	5442
authorized in the immediately preceding section of this act for	5443
the School Building Assistance Program for the School Facilities	5444
Commission to distribute in accordance with their rules and	5445
guidelines pursuant to Chapter 3318. of the Revised Code.	5446

Section 35. The amendment or enactment by this act of	5447
sections 5901.02, 5901.021, and 5901.03 of the Revised Code first	5448
applies to veterans service commission budget requests for the	5449
fiscal year beginning January 1, 2003. Notwithstanding section	5450
5901.11 of the Revised Code to the contrary, if a budget request	5451
for that fiscal year exceeds either of the amounts set forth in	5452
section 5901.021 of the Revised Code as enacted by this act, the	5453
board of county commissioners may exercise the authority granted	5454
under that section with respect to such request regardless of when	5455
the budget request was submitted to the board.	5456

Section 36. Sections 30, 31, 33, 34, and 35 of this act are	5457
subject to the referendum. Therefore, under Ohio Constitution,	5458
Article II, Section 1c and section 1.471 of the Revised Code, the	5459
sections take effect on the ninety-first day after this act is	5460
filed with the Secretary of State. If, however, a referendum	5461
petition is filed against the sections, the sections, unless	5462
rejected at the referendum, take effect at the earliest time	5463
permitted by law.	5464

Section 37. Except as otherwise specifically provided in this	5465
act, the codified and uncodified sections of law amended or	5466
enacted in this act, and the items of law of which the codified	5467
and uncodified sections of law amended or enacted in this act are	5468
composed, are not subject to the referendum. Therefore, under Ohio	5469
Constitution, Article II, Section 1d, the codified and uncodified	5470
sections of law amended or enacted in this act, and the items of	5471
law of which the codified and uncodified sections of law amended	5472
or enacted in this act are composed, except as otherwise	5473
specifically provided in this act, go into immediate effect when	5474
this act becomes law.	5475

Section 38. The repeals by this act of sections 5126.16 and	5476
5126.18 of the Revised Code are not subject to the referendum.	5477
Therefore, under Ohio Constitution, Article II, Section 1d and	5478
section 1.471 of the Revised Code, the repeals go into immediate	5479
effect when this act becomes law.	5480

Section 39. The repeals by this act of sections 5743.023 and	5481
5743.322 of the Revised Code are not subject to the referendum.	5482
Therefore, under Ohio Constitution, Article II, Section 1d, the	5483
repeals go into effect as prescribed in Section 3 of this act.	5484

Section 40. Sections 173.06, 173.061, 173.062, 173.07,	5485
173.071, 173.072, 5901.02, 5901.021, and 5901.03 of the Revised	5486
Code as amended or enacted by this act, and the items of law of	5487
which such sections as amended or enacted by this act are	5488
composed, are subject to the referendum. Therefore, under Ohio	5489
Constitution, Article II, Section 1c and section 1.471 of the	5490
Revised Code, such sections as amended or enacted by this act, and	5491
the items of law of which such sections as amended or enacted by	5492
this act are composed, take effect on the ninety-first day after	5493
this act is filed with the Secretary of State. If, however, a	5494
referendum petition is filed against any such section as amended	5495
or enacted by this act, or against any item of law of which any	5496
such section as amended or enacted by this act is composed, the	5497
section as amended or enacted, or item of law, unless rejected at	5498
the referendum, takes effect at the earliest time permitted by	5499
law.	5500

Section 41. The amendment of sections 5112.01, 5112.06,	5501
5112.07, and 5112.11 of the Revised Code is not intended to	5502
supersede the earlier repeal, with delayed effective date, of	5503
those sections.	5504