SENATOR Mumper

To amend sections 4707.05, 4707.07, 4707.072, 4707.09,

1

and 4707.19, to enact new section 4707.11 and

2

sections 4707.25 to 4707.30, and to repeal section

3

4707.11 of the Revised Code and to amend Section 17

4

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

5

as amended by Am. Sub. H.B. 3 of the 124th General

6

Assembly to create the Auction Recovery Fund, to

7

establish criteria and procedures for using it to

8

reimburse persons who obtained a court judgment

9

against an auctioneer who violated the Auctioneers

10

Law and has not paid the judgment, and to make an

11

appropriation.

12

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

Section 1. That sections 4707.05, 4707.07, 4707.072, 4707.09,	13
and 4707.19 be amended and new section 4707.11 and sections	14
4707.25, 4707.26, 4707.27, 4707.28, 4707.29, and 4707.30 of the	15
Revised Code be enacted to read as follows:	16

Sec. 4707.05. AllExcept as otherwise provided in section	17
4707.25 of the Revised Code, all fees and charges collected by the	18
department of agriculture pursuant to this chapter shall be paid	19
into the state treasury to the credit of the auctioneers fund,	20
which is hereby created. All expenses incurred by the department	21
in administering this chapter shall be paid out of the fund. The	22
total expenses incurred by the department in the administration of	23
this chapter shall not exceed the total fees, charges, fines, and	24
penalties imposed under sections 4707.08, 4707.10, and 4707.99 of	25
the Revised Code and paid to the treasurer of state. The	26
department may conduct education programs for the enlightenment	27
and benefit of all auctioneers who have paid fees pursuant to	28
sections 4707.08 and 4707.10 of the Revised Code.	29

Out of the moneys credited pursuant to this section, the fund	30
shall be assessed a proportionate share of the administrative	31
costs of the department in accordance with procedures prescribed	32
by the director of agriculture and approved by the director of	33
budget and management. The assessment shall be paid from the	34
auctioneers fund to the division of administration fund.	35

At the end of each fiscal year, if the balance of the fund is	36
greater than three hundred thousand dollars, the director of	37
agriculture shall request the director of budget and management	38
to, and the director of budget and management shall, transfer	39
twenty-five per cent of the balance to the auction recovery fund	40
created in section 4707.25 of the Revised Code.	41

Sec. 4707.07.  (A) The department of agriculture may grant	42
auctioneers' licenses to those persons deemed qualified by the	43
department. Each person who applies for an auctioneer's license	44
shall furnish to the department, on forms provided by the	45
department, satisfactory proof that the applicant:	46

(1) Has a good reputation;

47

(2) Is of trustworthy character;

48

(3) Has attained the age of at least eighteen years;

49

(4) Has done one of the following:

50

(a) Met the apprenticeship requirements set forth in section	51
4707.09 of the Revised Code;	52

(b) Met the requirements of section 4707.12 of the Revised	53
Code.	54

(5) Has a general knowledge of the following:

55

(a) The requirements of the Revised Code relative to	56
auctioneers;	57

(b) The auction profession;

58

(c) The principles involved in conducting an auction.

59

(6) Has satisfied the financial responsibility requirements	60
established under section 4707.11 of the Revised Code.	61

(B) Auctioneers who served apprenticeships and who hold	62
licenses issued before May 1, 1991, and who seek renewal of their	63
licenses, are not subject to the additional apprenticeship	64
requirements imposed by section 4707.08 of the Revised Code.	65

(C) The department may issue an auctioneer's license to a	66
partnership, association, or corporation if all the partners,	67
members, or officers thereof who are authorized to perform the	68
functions of an auctioneer as agents of the applicant are	69
themselves licensed as auctioneers under this chapter.	70

An application for an auctioneer's license filed by a	71
partnership or association shall contain a listing of the names of	72
all of the licensed partners, members, or other persons who are	73
authorized to perform the functions of an auctioneer as agents of	74
the applicant. An application filed by a corporation shall	75
contain the names of its president and of each of its licensed	76
officers and any other person who is authorized to perform the	77
functions of an auctioneer as an agent of the applicant.	78

(D) A licensee may do business under more than one	79
registered name if the names have been approved by the department.	80
The department may reject the application of any person seeking	81
licensure under this chapter if the name or names to be used by	82
the applicant are likely to mislead the public, or if the name or	83
names do not distinguish the applicant from the name or names of	84
any existing person licensed under this chapter. If an applicant	85
applies to the department to do business under more than two	86
names, the department may charge a fee of ten dollars for the	87
third name and each additional name.	88

Sec. 4707.072.  The department of agriculture may grant	89
one-auction licenses to any nonresident person deemed qualified by	90
the department. Any person who applies for a one-auction license	91
shall attest, on forms provided by the department, and furnish to	92
the department, satisfactory proof that the license applicant or	93
any auctioneer affiliated with the applicant meets the following	94
requirements:	95

(A) Has a good reputation;

96

(B) Is of trustworthy character;

97

(C) Has attained the age of at least eighteen years;

98

(D) Has a general knowledge of the requirements of the	99
Revised Code relative to auctioneers, the auction profession, and	100
the principles involved in conducting an auction;	101

(E) Has two years of professional auctioneering experience	102
immediately preceding the date of application and the experience	103
includes the personal conduct by the applicant of at least twelve	104
auction sales in any state, or has met the requirements of section	105
4707.12 of the Revised Code;	106

(F) Has paid a fee of one hundred dollars, which shall be	107
credited to the auctioneers fund;	108

(G) Has provided proof of the bondfinancial responsibility	109
as required under section 4707.11 of the Revised Code.	110

Sec. 4707.09.  The department of agriculture may grant	111
apprentice auctioneers' licenses to those persons deemed qualified	112
by the department. Every applicant for an apprentice auctioneer's	113
license mustshall pass an examination relating to the skills,	114
knowledge, and statutes and regulationsrules governing	115
auctioneers. Every applicant for an apprentice auctioneer's	116
license shall furnish to the department, on forms provided by the	117
department, satisfactory proof that the applicant:	118

(A) Has a good reputation;

119

(B) Is of trustworthy character;

120

(C) Has attained the age of at least eighteen years;

121

(D) Has obtained a written promise of a licensed auctioneer	122
to sponsor the applicant during the applicant's apprenticeship;	123

(E) Has satisfied the financial responsibility requirements	124
established under section 4707.11 of the Revised Code.	125

Before an apprentice may take the auctioneer's license	126
examination, the apprentice shall serve an apprenticeship of at	127
least twelve months, successfully complete a course of study in	128
auctioneering at an institution that is approved every three years	129
by the state auctioneers commission, and conduct, as a bid caller,	130
at least twelve auction sales under the direct supervision of the	131
sponsoring licensed auctioneer, which sales shall be certified by	132
the licensed auctioneer on the apprentice's application for an	133
auctioneer's license.	134

If an auctioneer intends to terminate sponsorship of an	135
apprentice auctioneer, the sponsoring auctioneer shall notify the	136
apprentice auctioneer of the sponsoring auctioneer's intention by	137
certified mail, return receipt requested, at least ten days prior	138
to the effective date of termination and, at the same time, shall	139
deliver or mail by certified mail to the department of	140
agriculture a copy of the termination notice and the license of	141
the apprentice auctioneer. No apprentice auctioneer shall perform	142
any acts under authority of the apprentice's license after the	143
effective date of the termination until the apprentice receives a	144
new license bearing the name and address of the apprentice's new	145
sponsor. No more than one license shall be issued to any	146
apprentice auctioneer for the same period of time.	147

No licensed auctioneer shall have under the licensed	148
auctioneer's sponsorship more than two apprentice auctioneers at	149
one time.	150

An apprentice auctioneer may terminate the apprentice's	151
sponsorship with an auctioneer by notifying the auctioneer of the	152
apprentice's intention by certified mail, return receipt	153
requested, at least ten days prior to the effective date of	154
termination. At the same time, the apprentice shall deliver or	155
mail by certified mail to the department of agriculture a copy of	156
the termination notice. Upon receiving the termination notice,	157
the sponsoring auctioneer shall promptly deliver or mail by	158
certified mail to the department the license of the apprentice	159
auctioneer.	160

The termination of a sponsorship, regardless of who initiates	161
the termination, shall not be cause for an apprentice auctioneer	162
to lose credit for any certified sales the apprentice conducted	163
or apprenticeship time the apprentice served under the direct	164
supervision of the former sponsor.	165

Sec. 4707.11. Each application for a license issued under	166
this chapter shall be accompanied by proof of financial	167
responsibility in the form of an irrevocable letter of credit in	168
the amount of fifty thousand dollars. If an applicant is unable	169
to provide the irrevocable letter of credit, the applicant instead	170
may give either a cash bond or a surety bond in the amount of	171
twenty-five thousand dollars. If the applicant gives a surety	172
bond, the bond shall be executed by a surety company authorized to	173
do business in this state.	174

A bond shall be made to the department of agriculture and	175
shall be conditioned that the applicant shall comply with this	176
chapter and rules adopted under it, including refraining from	177
conduct described in section 4707.15 of the Revised Code. All	178
bonds shall be on a form approved by the director of agriculture.	179

A licensee shall maintain proof of financial responsibility	180
for three years following the date of licensure. After the	181
three-year period, a licensee who has not engaged in conduct	182
described in section 4707.15 of the Revised Code and has not	183
otherwise violated this chapter or rules adopted under it during	184
that period shall no longer be required to maintain proof of	185
financial responsibility except as otherwise provided in this	186
section.	187

A licensee whose license expires without being renewed under	188
section 4707.10 of the Revised Code or is suspended under section	189
4707.30 of the Revised Code shall give proof of financial	190
responsibility in accordance with this section in order to obtain	191
reinstatement or reactivation of the license.	192

Sec. 4707.19.  The departmentdirector of agriculture may	193
makeadopt reasonable rules necessary for the implementation of	194
the provisions of this chapter pursuant toin accordance with	195
Chapter 119. of the Revised Code. In addition, the director shall	196
adopt rules in accordance with Chapter 119. of the Revised Code	197
that establish the portion of license fees collected under this	198
chapter that are to be deposited into the auction recovery fund	199
under section 4707.25 of the Revised Code. The department of	200
agriculture may hear testimony in matters relating to the duties	201
imposed on it, and any person authorized by the director of	202
agriculture may administer oaths. The department may require	203
other proof of the honesty, truthfulness, and good reputation of	204
any person named in the application for an auctioneer's,	205
apprentice auctioneer's, or special auctioneer's license before	206
admitting the applicant to an examination or issuing a license.	207

Sec. 4707.25. (A) The auction recovery fund is hereby	208
created in the state treasury. The fund shall be administered by	209
the director of agriculture. The treasurer of state shall credit	210
all of the following to the fund: any moneys transferred to it	211
from the auctioneers fund created under section 4707.05 of the	212
Revised Code; except as otherwise provided in this section, a	213
portion, in an amount specified in rules adopted under section	214
4707.19 of the Revised Code, of license fees collected under this	215
chapter; any assessments levied under this section; repayments	216
made to the auction recovery fund under section 4707.30 of the	217
Revised Code by persons licensed under this chapter; and interest	218
earned on the assets of the fund.	219

Moneys credited to the fund shall be used to make payments to	220
persons who obtain a final judgment in a court of competent	221
jurisdiction against a person licensed under this chapter on the	222
grounds of conduct by the licensee that is described in section	223
4707.15 of the Revised Code or that otherwise violates this	224
chapter or rules adopted under it and that is associated with an	225
act or transaction that only a licensee lawfully may perform. The	226
amount of the payments shall be limited to any portion of the	227
final judgment that remains unpaid and that represents not more	228
than eighty per cent of the actual and direct loss sustained by	229
the person who obtained the judgment. The amount of the payments	230
also is subject to the dollar limitations established in section	231
4707.29 of the Revised Code.	232

(B) The director shall ascertain the balance of the fund on	233
the first day of July each year. If the balance of the fund is	234
greater than two million dollars, the director may utilize, during	235
the fiscal year beginning on that first day of July, the portion	236
of the fund that is greater than two million dollars to sponsor	237
educational programs or to underwrite research that is beneficial	238
to persons licensed under this chapter and to the public. If the	239
balance of the fund is at least four million dollars, the portion	240
of license fees collected under this chapter that otherwise would	241
be credited to the fund under this section shall be credited to	242
the auctioneers fund during the fiscal year beginning on that	243
first day of July.	244

If the balance of the fund is less than four hundred thousand	245
dollars, the director shall levy an assessment against each person	246
who holds a valid license issued under this chapter. The amount	247
of the assessment shall be determined by subtracting the balance	248
of the fund from five hundred thousand dollars and dividing the	249
resulting total by the number of persons recorded under section	250
4707.06 of the Revised Code as holding a valid license issued	251
under this chapter. All assessments that are collected shall be	252
credited to the fund.	253

(C) The director shall collect from the fund a service fee	254
in an amount equal to the interest rate specified in division (A)	255
of section 1343.03 of the Revised Code multiplied by the annual	256
interest earned on the assets of the fund to defray the expenses	257
incurred by the department of agriculture in the administration of	258
the fund.	259

Sec. 4707.26. A person who obtains a final judgment in a	260
court of competent jurisdiction against a person licensed under	261
this chapter, on the grounds of conduct by the licensee that is	262
described in section 4707.15 of the Revised Code or that otherwise	263
violates this chapter or rules adopted under it and that is	264
associated with an act or transaction that only a licensee	265
lawfully may perform, may file a verified application in a court	266
of common pleas for an order directing payment from the auction	267
recovery fund. The application may seek payment in an amount that	268
is equal to the portion of the judgment that remains unpaid and	269
that represents not more than eighty per cent of the actual and	270
direct loss sustained by the applicant.	271

The application shall specify the nature of the act or	272
transaction on which the underlying judgment was based, the	273
activities of the applicant in pursuit of remedies available under	274
the law for the collection of judgments, and the actual and direct	275
losses sustained by the applicant. The applicant shall attach to	276
the application a copy of each pleading and order in the	277
underlying court action. In addition, the application shall	278
include proof of the applicant's actual and direct loss in the	279
form of a receipt received from the licensee on the day of the	280
sale or consignment on which the underlying judgment was based.	281
The receipt shall state the item that was sold or consigned, the	282
price of the item, the estimated value of the item, and the names	283
of the consignee and purchaser of the item.	284

Whenever possible, the court shall require all applicants and	285
prospective applicants whose claims to the fund arose from an	286
underlying judgment against the same licensee to be joined in one	287
action under this section so that the rights of all applicants may	288
be equitably adjudicated and settled.	289

Sec. 4707.27. A person who applies to a court of common pleas	290
for an order directing payment from the auction recovery fund	291
shall file notice of the application with the director of	292
agriculture. The director may defend any such action on behalf of	293
the fund and shall have recourse to all appropriate means of	294
defense and review, including examination of witnesses,	295
verification of actual and direct losses, and challenges to the	296
underlying judgment obtained from a court of competent	297
jurisdiction to determine whether the underlying judgment is based	298
on activity that only a person holding a valid license issued	299
under this chapter is authorized to perform. The director may	300
move the court of common pleas at any time to dismiss the	301
application when it appears that there are no triable issues and	302
the application is without merit, provided that the director shall	303
give written notice to the applicant not fewer than ten days	304
before the motion is made. The motion may be supported by	305
affidavit of any person having knowledge of the facts and may be	306
made on the basis that the application, including the underlying	307
judgment referred to in it, does not form the basis for a	308
meritorious recovery claim. Subject to court approval, the	309
director may compromise a claim based on the application of the	310
aggrieved party. The director shall not be bound by any prior	311
compromise or stipulation of the licensee who is the judgment	312
debtor.	313

If a final judgment that could be the basis for an	314
application filed under section 4707.26 of the Revised Code	315
involves a violation of Chapter 4735. of the Revised Code, the	316
person who obtained the judgment shall file notice with the	317
superintendent of real estate and apply for an order directing	318
payment from the real estate recovery fund in accordance with	319
section 4735.12 of the Revised Code. Before the person files an	320
application under this section, the person first shall exhaust all	321
remedies involving the real estate recovery fund that are	322
available under that section. The total aggregate amount that is	323
paid to the person from both the real estate recovery fund and the	324
auction recovery fund shall not exceed the portion of the judgment	325
that remains unpaid and that represents the actual and direct loss	326
sustained by the person and is subject to the dollar limitations	327
established in section 4707.29 of the Revised Code.	328

Sec. 4707.28. (A) After receipt of an application that is	329
filed under section 4707.26 of the Revised Code and that satisfies	330
the requirements established under that section, a court of common	331
pleas shall issue an order directing the director of agriculture	332
to make payment from the auction recovery fund to an applicant who	333
satisfies the criteria established under this section. The	334
payment shall consist of an amount that is equal to the portion of	335
the final judgment that was obtained by the applicant against a	336
person licensed under this chapter and that remains unpaid, not to	337
exceed eighty per cent of the actual and direct loss sustained by	338
the applicant. The amount of the payment also is subject to the	339
dollar limitations established in section 4707.29 of the Revised	340
Code.	341

The court shall issue an order directing payment to the	342
applicant from the fund when the applicant has shown all of the	343
following:	344

(1) The applicant has obtained a judgment in a court of	345
competent jurisdiction against a person licensed under this	346
chapter on the grounds of conduct that is described in section	347
4707.15 of the Revised Code or that otherwise violates this	348
chapter or rules adopted under it and that is associated with an	349
act or transaction that only a licensee lawfully may perform.	350

(2) All appeals from the judgment have been exhausted, and	351
the applicant has filed notice with the director in accordance	352
with section 4707.27 of the Revised Code and has otherwise	353
complied with that section.	354

(3) The applicant is not either the spouse of the licensee	355
who is the judgment debtor or the personal representative of the	356
spouse.	357

(4) The applicant has diligently pursued the applicant's	358
remedies against all judgment debtors and all other persons who	359
are liable to the applicant in the underlying auction transaction	360
for which the applicant seeks recovery from the fund.	361

(5) The applicant filed the application not later than six	362
months following the termination of all proceedings, including	363
appeals, in connection with the judgment.	364

(6) If the judgment debtor gave bond in accordance with	365
section 4707.11 of the Revised Code, the applicant first	366
unsuccessfully sought recovery under the bond before applying for	367
payment from the fund.	368

(B) All of the following are prohibited from receiving	369
payment from the auction recovery fund:	370

(1) A bonding company that was not a party in the underlying	371
auction transaction;	372

(2) A person holding a valid license issued under either	373
this chapter or Chapter 4735. of the Revised Code;	374

(3) A person who, under division (B)(5) of section 4735.12	375
of the Revised Code, would be ineligible to receive payment from	376
the real estate recovery fund;	377

(4) A person who obtained a final judgment that arose from	378
an act or transaction that only a licensed real estate broker or	379
real estate salesperson is authorized to perform under Chapter	380
4735. of the Revised Code and that did not involve a violation of	381
this chapter or rules adopted under it.	382

(C) Punitive damages, attorney's fees, court costs, and	383
interest on a judgment are not recoverable from the auction	384
recovery fund.	385

Sec. 4707.29. The liability of the auction recovery fund	386
shall not exceed fifty thousand dollars for losses involving	387
violations committed by any one licensee, except that with respect	388
to any one licensee who provides a bond in order to maintain proof	389
of financial responsibility under section 4707.11 of the Revised	390
Code, the liability of the fund shall not exceed twenty-five	391
thousand dollars for losses involving violations committed by the	392
licensee. If a licensee's license is reactivated as provided in	393
section 4707.30 of the Revised Code, the liability of the fund for	394
the licensee shall again be fifty thousand dollars, or twenty-five	395
thousand dollars if applicable, but only for transactions that	396
occur subsequent to the time of reactivation.	397

If fifty thousand dollars, or twenty-five thousand dollars if	398
applicable, are insufficient to pay the valid claims of all	399
persons who have applied for payment from the fund with respect to	400
losses involving violations committed by the same licensee, the	401
money shall be distributed among the persons in the ratio that	402
their respective claims bear to the aggregate of valid claims or	403
in another manner that the court determines to be equitable.	404
Distribution of the money shall be among the persons entitled to	405
share in it without regard to the order of priority in which their	406
respective judgments may have been decided or their applications	407
for payment from the fund may have been filed.	408

Sec. 4707.30. (A) As used in this section:

409

(1) "Aggrieved party" means a person who obtains a final	410
judgment in a court of competent jurisdiction against a person	411
licensed under this chapter on the grounds of conduct by the	412
licensee that is described in section 4707.15 of the Revised Code	413
or that otherwise violates this chapter or rules adopted under it	414
and that is associated with an act or transaction that only a	415
licensee lawfully may perform.	416

(2) "Judgment debtor licensee" means a person licensed under	417
this chapter against whom an aggrieved party obtains a final	418
judgment in a court of competent jurisdiction and whose failure to	419
pay all or a portion of the judgment results in a payment to the	420
aggrieved party from the auction recovery fund.	421

(B) If the director of agriculture makes a payment from the	422
auction recovery fund to an aggrieved party and the license of the	423
judgment debtor licensee has not been suspended or revoked under	424
section 4707.15 of the Revised Code, the license automatically is	425
suspended on the date on which the payment is made. The director	426
shall not reactivate the suspended license until the judgment	427
debtor licensee has repaid in full, plus interest per annum at the	428
rate specified in division (A) of section 1343.01 of the Revised	429
Code, the amount paid from the fund to the aggrieved party. A	430
discharge in bankruptcy does not relieve a judgment debtor	431
licensee from the suspension provisions and requirements for	432
reactivation of a license that are established in this section.	433

When, upon the order of a court of common pleas, the director	434
has paid from the fund any sum to an aggrieved party, the director	435
shall be subrogated to all of the rights of the aggrieved party to	436
the extent of the amount of the payment that the aggrieved party	437
received from the fund. The aggrieved party shall assign all of	438
the aggrieved party's right, title, and interest in the judgment	439
to the director to the extent of the amount of the payment. The	440
director shall deposit into the fund any amount and interest	441
recovered by the director on the judgment.	442

With respect to the amount of a payment that the director has	443
paid to an aggrieved party from the fund and has not recovered,	444
the director shall have a priority lien in front of all other	445
interested creditors against the assets of a judgment debtor	446
licensee who files bankruptcy. The lien shall be deemed to have	447
taken effect on the date that the judgment debtor licensee entered	448
into a contract in accordance with section 4707.20 of the Revised	449
Code with respect to the auction transaction on which the	450
underlying judgment was based.	451

Disciplinary action taken under this section against a	452
judgment debtor licensee and the recovery of moneys from a	453
judgment debtor licensee for deposit into the fund shall not	454
excuse the judgment debtor licensee from any other disciplinary	455
action to which the judgment debtor licensee may be subject under	456
this chapter or any other provision of the Revised Code or rules	457
adopted under it.	458

Section 2. That existing sections 4707.05, 4707.07, 4707.072,	459
4707.09, and 4707.19 and section 4707.11 of the Revised Code are	460
hereby repealed.	461

Section 3. That Section 17 of Am. Sub. H.B. 94 of the 124th	462
General Assembly, as amended by Am. Sub. H.B. 3 of the 124th	463
General Assembly, be amended to read as follows:	464

Sec. 17.  AGR DEPARTMENT OF AGRICULTURE

465

General Revenue Fund

466

Federal Special Revenue Fund Group

488

State Special Revenue Fund Group

496

ANIMAL DISEASE CONTROL

523

The funds in appropriation item 700-401, Animal Disease	524
Control, may be used for the detection, prevention, and emergency	525
management of, and the education of the public regarding, Foot and	526
Mouth disease, Mad Cow disease, and West Nile virus.	527

REIMBURSEMENT TO THE GENERAL REVENUE FUND

528

(A) On or before June 30, 2003, the Director of	529
Budget and Management shall determine the following:	530

(1) The total amount disbursed from the foregoing	531
appropriation item, 700-409, Farmland Preservation, in the	532
2002-2003 biennium; and	533

(2) The amount of interest earnings that have been	534
credited to the Clean Ohio Conservation Fund (Fund 056) that are	535
in excess of what is needed for other purposes.	536

(B) If the Director determines under division (A)(2) of	537
this section that there are excess interest earnings, the Director	538
shall, on or before June 30, 2003, transfer them in an amount not	539
to exceed $60,000 less than the amount of disbursements determined	540
under division (A)(1) of this section from the Clean Ohio	541
Conservation Fund to the General Revenue Fund.	542

THE AUCTION FUND

543

On October 1, 2001, the Auction Education Fund (Fund 4D2) and	544
the Auction Licensing Fund (Fund 5B8) shall be transferred from	545
the Department of Commerce to the Department of Agriculture. At	546
the request of the Director of Commerce, the Director of Budget	547
and Management may cancel encumbrances in these funds from the	548
Department of Commerce's appropriation item 800-605, Auctioneer	549
Education, and appropriation item 800-628, Auctioneers, and	550
reestablish such encumbrances or parts of encumbrances in fiscal	551
year 2002 for the same purpose and to the same vendor in the	552
Department of Agriculture's appropriation item 700-609, Auction	553
Education, and appropriation item 700-628, Auctioneers. The	554
Director of Budget and Management shall reduce the appropriation	555
balances in fiscal year 2001 by the amount of the encumbrances	556
canceled in the funds. As determined by the Director of Budget	557
and Management, the appropriation authority necessary to	558
reestablish such encumbrances or parts of encumbrances in fiscal	559
year 2002 for the Department of Agriculture is hereby	560
appropriated.	561

THE DAIRY INDUSTRY FUND

562

On July 1, 2001, or as soon thereafter as possible, the	563
Director of Budget and Management shall transfer the cash balance	564
in the License Fees (Fund 4V0) to the Dairy Inspection Fund (Fund	565
4R2). The director shall cancel any existing encumbrances against	566
appropriation item 700-602, License Fees (Fund 4V0), and	567
reestablish them against appropriation item 700-637, Dairy	568
Inspection (Fund 4R2). The amounts of the reestablished	569
encumbrances are appropriated.	570

Section 4. That existing Section 17 of Am. Sub. H.B. 94 of	571
the 124th General Assembly, as amended by Am. Sub. H.B. 3 of the	572
124th General Assembly, is hereby repealed.	573

Section 5. As soon as possible prior to June 30, 2002, the	574
Director of Budget and Management shall make a one-time cash	575
transfer of $500,000 from Fund 5B8, Auctioneers, to Fund 5U1,	576
Auction Recovery Fund. The Auction Recovery Fund is to be	577
administered by the Department of Agriculture under sections	578
4707.25 to 4707.30 of the Revised Code as enacted by this act.	579

Section 6. Sections 3 to 6 of this act are not subject to the	580
referendum. Therefore, under the Ohio Constitution, Article II,	581
Section 1d and section 1.471 of the Revised Code, Sections 3 to 6	582
of this act go into immediate effect when this act becomes law.	583