SENATORS Mumper, White, Carnes, Harris, Armbruster, Randy Gardner, Spada

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

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

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

6

Assembly to create the Auction Recovery Fund, to

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establish criteria and procedures for using it to

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reimburse persons who obtained a court judgment

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against an auctioneer who violated the Auctioneers

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Law and has not paid the judgment, to delay the

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effective date of specified provisions until July

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1, 2003, and to make an appropriation.

13

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

Section 1. That sections 4707.05, 4707.07, 4707.072, 4707.09,	14
and 4707.19 be amended and new section 4707.11 and sections	15
4707.25, 4707.26, 4707.27, 4707.28, 4707.29, and 4707.30 of the	16
Revised Code be enacted to read as follows:	17

Sec. 4707.05. AllExcept as otherwise provided in section	18
4707.25 of the Revised Code, all fees and charges collected by the	19
department of agriculture pursuant to this chapter shall be paid	20
into the state treasury to the credit of the auctioneers fund,	21
which is hereby created. All expenses incurred by the department	22
in administering this chapter shall be paid out of the fund. The	23
total expenses incurred by the department in the administration of	24
this chapter shall not exceed the total fees, charges, fines, and	25
penalties imposed under sections 4707.08, 4707.10, and 4707.99 of	26
the Revised Code and paid to the treasurer of state. The	27
department may conduct education programs for the enlightenment	28
and benefit of all auctioneers who have paid fees pursuant to	29
sections 4707.08 and 4707.10 of the Revised Code.	30

Out of the moneys credited pursuant to this section, the fund	31
shall be assessed a proportionate share of the administrative	32
costs of the department in accordance with procedures prescribed	33
by the director of agriculture and approved by the director of	34
budget and management. The assessment shall be paid from the	35
auctioneers fund to the division of administration fund.	36

At the end of each fiscal year, if the balance of the fund is	37
greater than three hundred thousand dollars, the director of	38
agriculture shall request the director of budget and management	39
to, and the director of budget and management shall, transfer	40
twenty-five per cent of the balance to the auction recovery fund	41
created in section 4707.25 of the Revised Code.	42

Sec. 4707.07.  (A) The department of agriculture may grant	43
auctioneers' licenses to those persons deemed qualified by the	44
department. Each person who applies for an auctioneer's license	45
shall furnish to the department, on forms provided by the	46
department, satisfactory proof that the applicant:	47

(1) Has a good reputation;

48

(2) Is of trustworthy character;

49

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

50

(4) Has done one of the following:

51

(a) Met the apprenticeship requirements set forth in section	52
4707.09 of the Revised Code;	53

(b) Met the requirements of section 4707.12 of the Revised	54
Code.	55

(5) Has a general knowledge of the following:

56

(a) The requirements of the Revised Code relative to	57
auctioneers;	58

(b) The auction profession;

59

(c) The principles involved in conducting an auction.

60

(6) Has satisfied the financial responsibility requirements	61
established under section 4707.11 of the Revised Code if	62
applicable.	63

(B) Auctioneers who served apprenticeships and who hold	64
licenses issued before May 1, 1991, and who seek renewal of their	65
licenses, are not subject to the additional apprenticeship	66
requirements imposed by section 4707.08 of the Revised Code.	67

(C) The department may issue an auctioneer's license to a	68
partnership, association, or corporation if all the partners,	69
members, or officers thereof who are authorized to perform the	70
functions of an auctioneer as agents of the applicant are	71
themselves licensed as auctioneers under this chapter.	72

An application for an auctioneer's license filed by a	73
partnership or association shall contain a listing of the names of	74
all of the licensed partners, members, or other persons who are	75
authorized to perform the functions of an auctioneer as agents of	76
the applicant. An application filed by a corporation shall	77
contain the names of its president and of each of its licensed	78
officers and any other person who is authorized to perform the	79
functions of an auctioneer as an agent of the applicant.	80

(D) A licensee may do business under more than one	81
registered name if the names have been approved by the department.	82
The department may reject the application of any person seeking	83
licensure under this chapter if the name or names to be used by	84
the applicant are likely to mislead the public, or if the name or	85
names do not distinguish the applicant from the name or names of	86
any existing person licensed under this chapter. If an applicant	87
applies to the department to do business under more than two	88
names, the department may charge a fee of ten dollars for the	89
third name and each additional name.	90

Sec. 4707.072.  The department of agriculture may grant	91
one-auction licenses to any nonresident person deemed qualified by	92
the department. Any person who applies for a one-auction license	93
shall attest, on forms provided by the department, and furnish to	94
the department, satisfactory proof that the license applicant or	95
any auctioneer affiliated with the applicant meets the following	96
requirements:	97

(A) Has a good reputation;

98

(B) Is of trustworthy character;

99

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

100

(D) Has a general knowledge of the requirements of the	101
Revised Code relative to auctioneers, the auction profession, and	102
the principles involved in conducting an auction;	103

(E) Has two years of professional auctioneering experience	104
immediately preceding the date of application and the experience	105
includes the personal conduct by the applicant of at least twelve	106
auction sales in any state, or has met the requirements of section	107
4707.12 of the Revised Code;	108

(F) Has paid a fee of one hundred dollars, which shall be	109
credited to the auctioneers fund;	110

(G) Has provided proof of the bondfinancial responsibility	111
as required under section 4707.11 of the Revised Code.	112

Sec. 4707.09.  The department of agriculture may grant	113
apprentice auctioneers' licenses to those persons deemed qualified	114
by the department. Every applicant for an apprentice auctioneer's	115
license mustshall pass an examination relating to the skills,	116
knowledge, and statutes and regulationsrules governing	117
auctioneers. Every applicant for an apprentice auctioneer's	118
license shall furnish to the department, on forms provided by the	119
department, satisfactory proof that the applicant:	120

(A) Has a good reputation;

121

(B) Is of trustworthy character;

122

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

123

(D) Has obtained a written promise of a licensed auctioneer	124
to sponsor the applicant during the applicant's apprenticeship;	125

(E) Has satisfied the financial responsibility requirements	126
established under section 4707.11 of the Revised Code if	127
applicable.	128

Before an apprentice may take the auctioneer's license	129
examination, the apprentice shall serve an apprenticeship of at	130
least twelve months, successfully complete a course of study in	131
auctioneering at an institution that is approved every three years	132
by the state auctioneers commission, and conduct, as a bid caller,	133
at least twelve auction sales under the direct supervision of the	134
sponsoring licensed auctioneer, which sales shall be certified by	135
the licensed auctioneer on the apprentice's application for an	136
auctioneer's license.	137

If an auctioneer intends to terminate sponsorship of an	138
apprentice auctioneer, the sponsoring auctioneer shall notify the	139
apprentice auctioneer of the sponsoring auctioneer's intention by	140
certified mail, return receipt requested, at least ten days prior	141
to the effective date of termination and, at the same time, shall	142
deliver or mail by certified mail to the department of	143
agriculture a copy of the termination notice and the license of	144
the apprentice auctioneer. No apprentice auctioneer shall perform	145
any acts under authority of the apprentice's license after the	146
effective date of the termination until the apprentice receives a	147
new license bearing the name and address of the apprentice's new	148
sponsor. No more than one license shall be issued to any	149
apprentice auctioneer for the same period of time.	150

No licensed auctioneer shall have under the licensed	151
auctioneer's sponsorship more than two apprentice auctioneers at	152
one time.	153

An apprentice auctioneer may terminate the apprentice's	154
sponsorship with an auctioneer by notifying the auctioneer of the	155
apprentice's intention by certified mail, return receipt	156
requested, at least ten days prior to the effective date of	157
termination. At the same time, the apprentice shall deliver or	158
mail by certified mail to the department of agriculture a copy of	159
the termination notice. Upon receiving the termination notice,	160
the sponsoring auctioneer shall promptly deliver or mail by	161
certified mail to the department the license of the apprentice	162
auctioneer.	163

The termination of a sponsorship, regardless of who initiates	164
the termination, shall not be cause for an apprentice auctioneer	165
to lose credit for any certified sales the apprentice conducted	166
or apprenticeship time the apprentice served under the direct	167
supervision of the former sponsor.	168

Sec. 4707.11. (A) Except as provided in division (B) of this	169
section, each application for a license issued under this chapter	170
shall be accompanied by proof of financial responsibility in the	171
form of either an irrevocable letter of credit or a cash bond or a	172
surety bond in the amount of twenty-five thousand dollars. If the	173
applicant gives a surety bond, the bond shall be executed by a	174
surety company authorized to do business in this state.	175

A bond shall be made to the department of agriculture and	176
shall be conditioned that the applicant shall comply with this	177
chapter and rules adopted under it, including refraining from	178
conduct described in section 4707.15 of the Revised Code. All	179
bonds shall be on a form approved by the director of agriculture.	180

A licensee shall maintain proof of financial responsibility	181
for three years following the date of initial licensure. After	182
the three-year period, a licensee who has not engaged in conduct	183
described in section 4707.15 of the Revised Code and has not	184
otherwise violated this chapter or rules adopted under it during	185
that period shall no longer be required to maintain proof of	186
financial responsibility except as otherwise provided in this	187
section.	188

A licensee whose license expires without being renewed under	189
section 4707.10 of the Revised Code or is suspended under section	190
4707.30 of the Revised Code shall give proof of financial	191
responsibility in accordance with this section in order to obtain	192
reinstatement or reactivation of the license.	193

(B) Division (A) of this section does not apply to either of	194
the following:	195

(1) A licensee whose license was issued prior to July 1,	196
2003, provided that the license continues to be renewed under	197
section 4707.10 of the Revised Code and is not suspended under	198
section 4707.15 or 4707.30 of the Revised Code;	199

(2) An apprentice auctioneer licensee whose license was	200
issued under section 4707.09 of the Revised Code prior to July 1,	201
2003, and who applies for an auctioneer's license under section	202
4707.07 of the Revised Code on or after July 1, 2003, provided	203
that the apprentice auctioneer's license is not suspended under	204
section 4707.15 or 4707.30 of the Revised Code, and, if necessary,	205
continues to be renewed under section 4707.10 of the Revised Code,	206
prior to the issuance of the auctioneer's license to the	207
applicant.	208

Sec. 4707.19.  The departmentdirector of agriculture may	209
makeadopt reasonable rules necessary for the implementation of	210
the provisions of this chapter pursuant toin accordance with	211
Chapter 119. of the Revised Code. In addition, the director shall	212
adopt rules in accordance with Chapter 119. of the Revised Code	213
that establish the portion of license fees collected under this	214
chapter that are to be deposited into the auction recovery fund	215
under section 4707.25 of the Revised Code. The department of	216
agriculture may hear testimony in matters relating to the duties	217
imposed on it, and any person authorized by the director of	218
agriculture may administer oaths. The department may require	219
other proof of the honesty, truthfulness, and good reputation of	220
any person named in the application for an auctioneer's,	221
apprentice auctioneer's, or special auctioneer's license before	222
admitting the applicant to an examination or issuing a license.	223

Sec. 4707.25. (A) The auction recovery fund is hereby	224
created in the state treasury. The fund shall be administered by	225
the director of agriculture. The treasurer of state shall credit	226
all of the following to the fund: any moneys transferred to it	227
from the auctioneers fund created under section 4707.05 of the	228
Revised Code; except as otherwise provided in this section, a	229
portion, in an amount specified in rules adopted under section	230
4707.19 of the Revised Code, of license fees collected under this	231
chapter; any assessments levied under this section; repayments	232
made to the auction recovery fund under section 4707.30 of the	233
Revised Code by persons licensed under this chapter; and interest	234
earned on the assets of the fund.	235

Moneys credited to the fund shall be used to make payments to	236
persons who obtain a final judgment in accordance with sections	237
4707.26 to 4707.30 of the Revised Code in a court of competent	238
jurisdiction against a person licensed under this chapter on the	239
grounds of conduct by the licensee that is described in section	240
4707.15 of the Revised Code or that otherwise violates this	241
chapter or rules adopted under it and that is associated with an	242
act or transaction that only a licensee lawfully may perform. The	243
amount of the payments shall be limited to any portion of the	244
final judgment that remains unpaid. The amount of the payments	245
also is subject to the dollar limitations established in section	246
4707.29 of the Revised Code.	247

(B) The director shall ascertain the balance of the fund on	248
the first day of July each year. If the balance of the fund is	249
greater than two million dollars, the director may utilize, during	250
the fiscal year beginning on that first day of July, the portion	251
of the fund that is greater than two million dollars to sponsor	252
educational programs or to underwrite research that is beneficial	253
to persons licensed under this chapter and to the public. If the	254
balance of the fund is at least four million dollars, the portion	255
of license fees collected under this chapter that otherwise would	256
be credited to the fund under this section shall be credited to	257
the auctioneers fund during the fiscal year beginning on that	258
first day of July.	259

If the balance of the fund is less than four hundred thousand	260
dollars, the director shall levy an assessment against each person	261
who holds a valid license issued under this chapter. The amount	262
of the assessment shall be determined by subtracting the balance	263
of the fund from five hundred thousand dollars and dividing the	264
resulting total by the number of persons recorded under section	265
4707.06 of the Revised Code as holding a valid license issued	266
under this chapter. All assessments that are collected shall be	267
credited to the fund.	268

(C) The director shall collect from the fund a service fee	269
in an amount equal to the interest rate specified in division (A)	270
of section 1343.03 of the Revised Code multiplied by the annual	271
interest earned on the assets of the fund to defray the expenses	272
incurred by the department of agriculture in the administration of	273
the fund.	274

Sec. 4707.26. A person who obtains a final judgment in a	275
court of competent jurisdiction against a person licensed under	276
this chapter, on the grounds of conduct by the licensee that is	277
described in section 4707.15 of the Revised Code or that otherwise	278
violates this chapter or rules adopted under it and that is	279
associated with an act or transaction that only a licensee	280
lawfully may perform, may file a verified application in a court	281
of common pleas for an order directing payment from the auction	282
recovery fund. The application may seek payment in an amount that	283
is equal to the portion of the judgment that remains unpaid.	284

The application shall specify the nature of the act or	285
transaction on which the underlying judgment was based, the	286
activities of the applicant in pursuit of remedies available under	287
the law for the collection of judgments, and the actual and direct	288
losses sustained by the applicant. The applicant shall attach to	289
the application a copy of each pleading and order in the	290
underlying court action. In addition, the application shall	291
include proof of the applicant's actual and direct loss in the	292
form of a receipt received from the licensee on the day of the	293
sale or consignment on which the underlying judgment was based.	294
The receipt shall state the item that was sold or consigned, the	295
price of the item, the estimated value of the item, and the names	296
of the consignee and purchaser of the item.	297

Whenever possible, the court shall require all applicants and	298
prospective applicants whose claims to the fund arose from an	299
underlying judgment against the same licensee to be joined in one	300
action under this section so that the rights of all applicants may	301
be equitably adjudicated and settled.	302

Sec. 4707.27. A person who applies to a court of common pleas	303
for an order directing payment from the auction recovery fund	304
shall file notice of the application with the director of	305
agriculture. The director may defend any such action on behalf of	306
the fund and shall have recourse to all appropriate means of	307
defense and review, including examination of witnesses,	308
verification of actual and direct losses, and challenges to the	309
underlying judgment obtained from a court of competent	310
jurisdiction to determine whether the underlying judgment is based	311
on activity that only a person holding a valid license issued	312
under this chapter is authorized to perform. The director may	313
move the court of common pleas at any time to dismiss the	314
application when it appears that there are no triable issues and	315
the application is without merit, provided that the director shall	316
give written notice to the applicant not fewer than ten days	317
before the motion is made. The motion may be supported by	318
affidavit of any person having knowledge of the facts and may be	319
made on the basis that the application, including the underlying	320
judgment referred to in it, does not form the basis for a	321
meritorious recovery claim. Subject to court approval, the	322
director may compromise a claim based on the application of the	323
aggrieved party. The director shall not be bound by any prior	324
compromise or stipulation of the licensee who is the judgment	325
debtor.	326

If a final judgment that could be the basis for an	327
application filed under section 4707.26 of the Revised Code	328
involves a violation of Chapter 4735. of the Revised Code, the	329
person who obtained the judgment shall file notice with the	330
superintendent of real estate and apply for an order directing	331
payment from the real estate recovery fund in accordance with	332
section 4735.12 of the Revised Code. Before the person files an	333
application under this section, the person first shall exhaust all	334
remedies involving the real estate recovery fund that are	335
available under that section. The total aggregate amount that is	336
paid to the person from both the real estate recovery fund and the	337
auction recovery fund shall not exceed the portion of the judgment	338
that remains unpaid and that represents the actual and direct loss	339
sustained by the person and is subject to the dollar limitations	340
established in section 4707.29 of the Revised Code.	341

Sec. 4707.28. (A) After receipt of an application that is	342
filed under section 4707.26 of the Revised Code and that satisfies	343
the requirements established under that section, a court of common	344
pleas shall issue an order directing the director of agriculture	345
to make payment from the auction recovery fund to an applicant who	346
satisfies the criteria established under this section. The	347
payment shall consist of an amount that is equal to the portion of	348
the final judgment that was obtained by the applicant against a	349
person licensed under this chapter and that remains unpaid. The	350
amount of the payment is subject to the dollar limitations	351
established in section 4707.29 of the Revised Code.	352

The court shall issue an order directing payment to the	353
applicant from the fund when the applicant has shown all of the	354
following:	355

(1) The applicant has obtained a judgment in a court of	356
competent jurisdiction against a person licensed under this	357
chapter on the grounds of conduct that is described in section	358
4707.15 of the Revised Code or that otherwise violates this	359
chapter or rules adopted under it and that is associated with an	360
act or transaction that only a licensee lawfully may perform.	361

(2) All appeals from the judgment have been exhausted, and	362
the applicant has filed notice with the director in accordance	363
with section 4707.27 of the Revised Code and has otherwise	364
complied with that section.	365

(3) The applicant is not either the spouse of the licensee	366
who is the judgment debtor or the personal representative of the	367
spouse.	368

(4) The applicant has diligently pursued the applicant's	369
remedies against all judgment debtors and all other persons who	370
are liable to the applicant in the underlying auction transaction	371
for which the applicant seeks recovery from the fund.	372

(5) The applicant filed the application not later than six	373
months following the termination of all proceedings, including	374
appeals, in connection with the judgment.	375

(6) If the judgment debtor either provided an irrevocable	376
letter of credit or gave bond in accordance with section 4707.11	377
of the Revised Code, the applicant first sought recovery under the	378
irrevocable letter of credit or the bond before applying for	379
payment from the fund.	380

(B) All of the following are prohibited from receiving	381
payment from the auction recovery fund:	382

(1) A bonding company that was not a party in the underlying	383
auction transaction;	384

(2) A person holding a valid license issued under either	385
this chapter or Chapter 4735. of the Revised Code;	386

(3) A person who, under division (B)(5) of section 4735.12	387
of the Revised Code, would be ineligible to receive payment from	388
the real estate recovery fund;	389

(4) A person who obtained a final judgment that arose from	390
an act or transaction that only a licensed real estate broker or	391
real estate salesperson is authorized to perform under Chapter	392
4735. of the Revised Code and that did not involve a violation of	393
this chapter or rules adopted under it.	394

(C) Punitive damages, attorney's fees, court costs, and	395
interest on a judgment are not recoverable from the auction	396
recovery fund.	397

Sec. 4707.29. The liability of the auction recovery fund	398
shall not exceed fifty thousand dollars for losses involving	399
violations committed by any one licensee, except that with respect	400
to any one licensee who provides either an irrevocable letter of	401
credit or a bond in order to maintain proof of financial	402
responsibility under section 4707.11 of the Revised Code, the	403
liability of the fund shall not exceed twenty-five thousand	404
dollars for losses involving violations committed by the licensee.	405
If a licensee's license is reactivated as provided in section	406
4707.30 of the Revised Code, the liability of the fund for the	407
licensee shall again be fifty thousand dollars, or twenty-five	408
thousand dollars if applicable, but only for transactions that	409
occur subsequent to the time of reactivation.	410

If fifty thousand dollars, or twenty-five thousand dollars if	411
applicable, are insufficient to pay the valid claims of all	412
persons who have applied for payment from the fund with respect to	413
losses involving violations committed by the same licensee, the	414
money shall be distributed among the persons in the ratio that	415
their respective claims bear to the aggregate of valid claims or	416
in another manner that the court determines to be equitable.	417
Distribution of the money shall be among the persons entitled to	418
share in it without regard to the order of priority in which their	419
respective judgments may have been decided or their applications	420
for payment from the fund may have been filed.	421

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

422

(1) "Aggrieved party" means a person who obtains a final	423
judgment in a court of competent jurisdiction against a person	424
licensed under this chapter on the grounds of conduct by the	425
licensee that is described in section 4707.15 of the Revised Code	426
or that otherwise violates this chapter or rules adopted under it	427
and that is associated with an act or transaction that only a	428
licensee lawfully may perform.	429

(2) "Judgment debtor licensee" means a person licensed under	430
this chapter against whom an aggrieved party obtains a final	431
judgment in a court of competent jurisdiction and whose failure to	432
pay all or a portion of the judgment results in a payment to the	433
aggrieved party from the auction recovery fund.	434

(B) If the director of agriculture makes a payment from the	435
auction recovery fund to an aggrieved party and the license of the	436
judgment debtor licensee has not been suspended or revoked under	437
section 4707.15 of the Revised Code, the license automatically is	438
suspended on the date on which the payment is made. The director	439
shall provide the judgment debtor licensee an opportunity for an	440
administrative hearing on the suspension in accordance with	441
Chapter 119. of the Revised Code. The director shall not	442
reactivate the suspended license until the judgment debtor	443
licensee has repaid in full, plus interest per annum at the rate	444
specified in division (A) of section 1343.01 of the Revised Code,	445
the amount paid from the fund to the aggrieved party. A discharge	446
in bankruptcy does not relieve a judgment debtor licensee from the	447
suspension provisions and requirements for reactivation of a	448
license that are established in this section.	449

When, upon the order of a court of common pleas, the director	450
has paid from the fund any sum to an aggrieved party, the director	451
shall be subrogated to all of the rights of the aggrieved party to	452
the extent of the amount of the payment that the aggrieved party	453
received from the fund. The aggrieved party shall assign all of	454
the aggrieved party's right, title, and interest in the judgment	455
to the director to the extent of the amount of the payment. The	456
director shall deposit into the fund any amount and interest	457
recovered by the director on the judgment.	458

With respect to the amount of a payment that the director has	459
paid to an aggrieved party from the fund and has not recovered,	460
the director shall have a priority lien in front of all other	461
interested creditors against the assets of a judgment debtor	462
licensee who files bankruptcy. The lien shall be deemed to have	463
taken effect on the date that the judgment debtor licensee entered	464
into a contract in accordance with section 4707.20 of the Revised	465
Code with respect to the auction transaction on which the	466
underlying judgment was based.	467

Disciplinary action taken under this section against a	468
judgment debtor licensee and the recovery of moneys from a	469
judgment debtor licensee for deposit into the fund shall not	470
excuse the judgment debtor licensee from any other disciplinary	471
action to which the judgment debtor licensee may be subject under	472
this chapter or any other provision of the Revised Code or rules	473
adopted under it.	474

Section 2. That existing sections 4707.05, 4707.07, 4707.072,	475
4707.09, and 4707.19 of the Revised Code are hereby repealed.	476

Section 3. That section 4707.11 of the Revised Code is hereby	477
repealed, effective July 1, 2003.	478

Section 4. Sections 4707.07, 4707.072, 4707.09, 4707.11,	479
4707.26, 4707.27, 4707.28, 4707.29, and 4707.30 of the Revised	480
Code, as amended or enacted by this act, shall take effect on July	481
1, 2003.	482

Section 5. That Section 17 of Am. Sub. H.B. 94 of the 124th	483
General Assembly, as amended by Am. Sub. H.B. 3 of the 124th	484
General Assembly, be amended to read as follows:	485

"       Sec. 17.  AGR DEPARTMENT OF AGRICULTURE

486

General Revenue Fund

487

Federal Special Revenue Fund Group

509

State Special Revenue Fund Group

517

ANIMAL DISEASE CONTROL

544

The funds in appropriation item 700-401, Animal Disease	545
Control, may be used for the detection, prevention, and emergency	546
management of, and the education of the public regarding, Foot and	547
Mouth disease, Mad Cow disease, and West Nile virus.	548

REIMBURSEMENT TO THE GENERAL REVENUE FUND

549

(A) On or before June 30, 2003, the Director of	550
Budget and Management shall determine the following:	551

(1) The total amount disbursed from the foregoing	552
appropriation item, 700-409, Farmland Preservation, in the	553
2002-2003 biennium; and	554

(2) The amount of interest earnings that have been	555
credited to the Clean Ohio Conservation Fund (Fund 056) that are	556
in excess of what is needed for other purposes.	557

(B) If the Director determines under division (A)(2) of	558
this section that there are excess interest earnings, the Director	559
shall, on or before June 30, 2003, transfer them in an amount not	560
to exceed $60,000 less than the amount of disbursements determined	561
under division (A)(1) of this section from the Clean Ohio	562
Conservation Fund to the General Revenue Fund.	563

THE AUCTION FUND

564

On October 1, 2001, the Auction Education Fund (Fund 4D2) and	565
the Auction Licensing Fund (Fund 5B8) shall be transferred from	566
the Department of Commerce to the Department of Agriculture. At	567
the request of the Director of Commerce, the Director of Budget	568
and Management may cancel encumbrances in these funds from the	569
Department of Commerce's appropriation item 800-605, Auctioneer	570
Education, and appropriation item 800-628, Auctioneers, and	571
reestablish such encumbrances or parts of encumbrances in fiscal	572
year 2002 for the same purpose and to the same vendor in the	573
Department of Agriculture's appropriation item 700-609, Auction	574
Education, and appropriation item 700-628, Auctioneers. The	575
Director of Budget and Management shall reduce the appropriation	576
balances in fiscal year 2001 by the amount of the encumbrances	577
canceled in the funds. As determined by the Director of Budget	578
and Management, the appropriation authority necessary to	579
reestablish such encumbrances or parts of encumbrances in fiscal	580
year 2002 for the Department of Agriculture is hereby	581
appropriated.	582

THE DAIRY INDUSTRY FUND

583

On July 1, 2001, or as soon thereafter as possible, the	584
Director of Budget and Management shall transfer the cash balance	585
in the License Fees (Fund 4V0) to the Dairy Inspection Fund (Fund	586
4R2). The director shall cancel any existing encumbrances against	587
appropriation item 700-602, License Fees (Fund 4V0), and	588
reestablish them against appropriation item 700-637, Dairy	589
Inspection (Fund 4R2). The amounts of the reestablished	590
encumbrances are appropriated."	591

Section 6. That existing Section 17 of Am. Sub. H.B. 94 of	592
the 124th General Assembly, as amended by Am. Sub. H.B. 3 of the	593
124th General Assembly, is hereby repealed.	594

Section 7. As soon as possible prior to June 30, 2002, the	595
Director of Budget and Management shall make a one-time cash	596
transfer of $500,000 from Fund 5B8, Auctioneers, to Fund 5U1,	597
Auction Recovery Fund. The Auction Recovery Fund is to be	598
administered by the Department of Agriculture under sections	599
4707.25 to 4707.30 of the Revised Code as enacted by this act.	600

Section 8. Sections 5 to 8 of this act are not subject to the	601
referendum. Therefore, under the Ohio Constitution, Article II,	602
Section 1d and section 1.471 of the Revised Code, Sections 5 to 8	603
of this act go into immediate effect when this act becomes law.	604