SENATORS Fedor, Prentiss, Nein, Carey, Padgett, Zurz, DiDonato, Austria

To amend sections 121.083, 3781.10, 3781.19, 4123.01,

1

and 4123.291; to enact new sections 4104.41,

2

4104.42, 4104.43, 4104.44, and 4104.45 and

3

sections 4125.01 to 4125.09 and 4125.99; and to

4

repeal sections 4104.41, 4104.42, 4104.43,

5

4104.44, 4104.45, and 4104.47 of the Revised Code

6

and to amend Section 3 of Sub. H.B. 75 of the

7

124th General Assembly to register professional

8

employer organizations for purposes of enforcing

9

compliance with workers' compensation laws, to

10

extend the time period wherein the Administrator

11

of Workers' Compensation is permitted to grant

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immediate allowance of specified medical

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conditions, to exclude from required workers'

14

compensation coverage an individual incorporated

15

as a corporation, and to adopt a new Ohio pressure

16

piping law.

17

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

Section 1. That sections 121.083, 3781.10, 3781.19, 4123.01,	18
and 4123.291 be amended and new sections 4104.41, 4104.42,	19
4104.43, 4104.44, and 4104.45 and sections 4125.01, 4125.02,	20
4125.03, 4125.04, 4125.05, 4125.06, 4125.07, 4125.08, 4125.09, and	21
4125.99 of the Revised Code be enacted to read as follows:	22

Sec. 121.083.  The superintendent of the division of	23
industrial compliance in the department of commerce shall:	24

(A) Administer and enforce the general laws of this state	25
pertaining to buildings, pressure piping, boilers, bedding,	26
upholstered furniture, and stuffed toys, steam engineering,	27
elevators, plumbing, licensed occupations regulated by the	28
department, and travel agents, as they apply to plans review,	29
inspection, code enforcement, testing, licensing, registration,	30
and certification.	31

(C)(B) Collect and collate statistics as are necessary.

32

(D)(C) Examine and license persons who desire to act as steam	33
engineers, to operate steam boilers, and to act as inspectors of	34
steam boilers, provide for the scope, conduct, and time of such	35
examinations, provide for, regulate, and enforce the renewal and	36
revocation of such licenses, inspect and examine steam boilers and	37
make, publish, and enforce rules and orders for the construction,	38
installation, inspection, and operation of steam boilers, and do,	39
require, and enforce all things necessary to make such	40
examination, inspection, and requirement efficient.	41

(E)(D) Rent and furnish offices as needed in cities in this	42
state for the conduct of its affairs.	43

(F)(E) Oversee a chief of construction and compliance, a	44
chief of operations and maintenance, a chief of licensing and	45
certification, and other designees appointed by the director of	46
commerce to perform the duties described in this section.	47

(F) Enforce the rules the board of building standards adopts	48
pursuant to division (A)(2) of section 4104.43 of the Revised Code	49
under the circumstances described in division (D) of that section.	50

(G) Accept submissions, establish a fee for submissions, and	51
review submissions of certified welding and brazing procedure	52
specifications, procedure qualification records, and performance	53
qualification records for building services piping as required by	54
section 4104.44 of the Revised Code.	55

Sec. 3781.10.  The board of building standards shall:

56

(A) Formulate and adopt rules governing the erection,	57
construction, repair, alteration, and maintenance of all buildings	58
or classes of buildings specified in section 3781.06 of the	59
Revised Code, including land area incidental thereto, the	60
construction of industrialized units, the installation of	61
equipment, and the standards or requirements for materials to be	62
used in connection therewith. The standards shall relate to the	63
conservation of energy in and to the safety and sanitation of such	64
buildings. The rules shall be the lawful minimum requirements	65
specified for such buildings or industrialized units, except that	66
no rule, except as provided in division (C) of section 3781.108 of	67
the Revised Code, which specifies a higher requirement than is	68
imposed by any section of the Revised Code shall be enforceable;	69
the rules shall be acceptable as complete lawful alternatives to	70
the requirements specified for such buildings or industrialized	71
units in any section of the Revised Code; and the board shall on	72
its own motion, or on application made under sections 3781.12 and	73
3781.13 of the Revised Code, formulate, propose, adopt, modify,	74
amend, or repeal the rules to the extent necessary or desirable to	75
effectuate the purposes of sections 3781.06 to 3781.18 of the	76
Revised Code.	77

(B) Formulate and report to the general assembly such	78
amendments in existing statutes relating to the purposes declared	79
in section 3781.06 of the Revised Code as public health and safety	80
and the development of the arts require and such additional	81
legislation as it recommends with a view to carrying out fully, in	82
statutory form, the purposes declared in such section; and prepare	83
and submit to the general assembly a summary report of the number,	84
nature, and disposition of the petitions filed under sections	85
3781.13 and 3781.14 of the Revised Code;	86

(C) Determine by rule, on its own motion or on application	87
made under sections 3781.12 and 3781.13 of the Revised Code, and	88
after thorough testing and evaluation that any particular fixture,	89
device, material, process of manufacture, manufactured unit or	90
component, method of manufacture, system, or method of	91
construction, complies with performance standards adopted pursuant	92
to section 3781.11 of the Revised Code, having regard to its	93
adaptability for safe and sanitary erection, use, or construction,	94
to that described in any section of the Revised Code, wherever the	95
use of a fixture, device, material, method of manufacture, system,	96
or method of construction which is described in such section of	97
the Revised Code, is permitted by law; and on like application	98
amend or annul any such rule or issue an authorization for the use	99
of a new material or manufactured unit; and no department,	100
officer, board, or commission of the state other than the board of	101
building standards or the board of building appeals shall permit	102
the use of any fixture, device, material, method of manufacture,	103
newly designed product, system, or method of construction at	104
variance with what is described in any rule adopted or	105
authorization issued by the board of building standards or in any	106
section of the Revised Code. Nothing in this section shall be	107
construed as requiring approval, by rule, of plans for an	108
industrialized unit that conforms with the rules adopted by the	109
board of building standards pursuant to section 3781.11 of the	110
Revised Code.	111

(D) Recommend to the bureau of workers' compensation, the	112
director of commerce, or any other department, officer, board, or	113
commission of the state, and to legislative authorities and	114
building departments of counties, townships, and municipal	115
corporations, the making, amending, fixing, or ordaining by such	116
appropriate action as such state, county, township, or municipal	117
authorities may be empowered by law or the constitution to take,	118
of such rules, codes, or standards as shall tend to carry out the	119
purposes declared in section 3781.06 of the Revised Code, with a	120
view to securing uniformity of state administrative ruling; and	121
local legislation and administrative action;	122

(E) Certify municipal, township, and county building	123
departments to exercise enforcement authority, to accept and	124
approve plans and specifications, and to make inspections,	125
pursuant to sections 3781.03 and, 3791.04, and 4104.43 of the	126
Revised Code.	127

The board also shall certify personnel of municipal,	128
township, and county building departments, and persons and	129
employees of persons, firms, or corporations as described in	130
divisions (E)(1) and (2) of this section, to exercise enforcement	131
authority, to accept and approve plans and specifications, and to	132
make inspections, pursuant to sections 3781.03 and, 3791.04, and	133
4104.45 of the Revised Code. The board shall specify, in rules	134
adopted pursuant to Chapter 119. of the Revised Code, the	135
requirements that shall be satisfied for certification purposes,	136
which requirements shall be consistent with this division. Except	137
as otherwise provided in this division, the requirements shall	138
include, but are not limited to, the satisfactory completion of an	139
initial examination and, in order to remain certified, the	140
completion of a specified number of hours of continuing building	141
code education within each three-year period following the date of	142
certification. In adopting the requirements, the board shall not	143
specify less than thirty hours of continuing building code	144
education within a three-year period; shall provide that	145
continuing education credits, and certification issued, by the	146
council of American building officials, national model code	147
organizations, and agencies or entities recognized by the board,	148
are acceptable for purposes of this division; and shall specify	149
requirements that are compatible, to the extent possible, with	150
requirements established by the council of American building	151
officials and national model code organizations. The board shall	152
establish and collect a certification and renewal fee for building	153
department personnel, and persons and employees of persons, firms,	154
or corporations as described in divisions (E)(1) and (2) of this	155
section, certified pursuant to this division.	156

All individuals certified pursuant to this division shall	157
complete the number of hours of continuing building code education	158
that the board requires or, for failure to do so, forfeit their	159
certifications.	160

This division does not require or authorize the certification	161
by the board of personnel of municipal, township, and county	162
building departments, and persons and employees of persons, firms,	163
or corporations as described in divisions (E)(1) and (2) of this	164
section, whose responsibilities do not include the exercise of	165
enforcement authority, the approval of plans and specifications,	166
or the making of inspections, under the Ohio building code.	167

(1) Enforcement authority for approval of plans and	168
specifications may be exercised, and plans and specifications may	169
be approved, on behalf of a municipal corporation, township, or	170
county, by any of the following who are certified by the board of	171
building standards:	172

(a) Officers or employees of the municipal corporation,	173
township, or county;	174

(b) Persons, or employees of persons, firms, or corporations,	175
when such persons, firms, or corporations are under contract to	176
furnish architectural or engineering services to the municipal	177
corporation, township, or county, and such authority is exercised	178
pursuant to such contract;	179

(c) Officers or employees of any other municipal corporation,	180
township, county, health district, or other political subdivision,	181
or persons or employees of persons, firms, or corporations under	182
contract with the same pursuant to division (E)(1)(b) of this	183
section, when such other municipal corporation, township, county,	184
health district, or other political subdivision is under contract	185
to furnish architectural or engineering services to the municipal	186
corporation, township, or county, and such authority is exercised	187
pursuant to such contract.	188

(2) Enforcement authority for inspections may be exercised,	189
and inspections may be made, on behalf of a municipal corporation,	190
township, or county, by any of the following who are certified by	191
the board of building standards:	192

(a) Officers or employees of the municipal corporation,	193
township, or county;	194

(b) Persons, or employees of persons, firms, or corporations,	195
when such persons, firms, or corporations are under contract to	196
furnish inspection services to the municipal corporation,	197
township, or county, and such authority is exercised pursuant to	198
such contract;	199

(c) Officers or employees of any other municipal corporation,	200
township, county, health district, or other political subdivision	201
under contract to furnish inspection services to the municipal	202
corporation, township, or county, when such authority is exercised	203
pursuant to such contract.	204

(3) Municipal, township, and county building departments	205
shall have jurisdiction within the meaning of sections 3781.03	206
and, 3791.04, and 4104.43 of the Revised Code, only with respect	207
to the types of buildings and subject matters as to which they	208
have been certified under this section and as to which such	209
certification remains in effect.	210

(4) Such certification shall be upon application by the	211
municipal corporation, the board of township trustees, or the	212
board of county commissioners and approval of such application by	213
the board of building standards. Such application shall set forth:	214

(a) The types of building occupancies as to which the	215
certification is requested;	216

(b) The number and qualifications of the staff composing the	217
building department;	218

(c) The names, addresses, and qualifications of persons,	219
firms, or corporations contracting to furnish work or services	220
pursuant to divisions (E)(1)(b) and (2)(b) of this section;	221

(d) The names of other municipal corporations, townships,	222
counties, health districts, or other political subdivisions	223
contracting to furnish work or services pursuant to divisions	224
(E)(1)(c) and (2)(c) of this section;	225

(e) The proposed budget for the operation of such department.

226

(5) The board of building standards shall adopt rules	227
governing:	228

(a) The certification of building department personnel and of	229
those persons and employees of persons, firms, or corporations	230
exercising authority pursuant to divisions (E)(1) and (2) of this	231
section. Any employee of the department or person who contracts	232
for services with the department is disqualified from performing	233
services for the department when the same would require the	234
employee or person to pass upon, inspect, or otherwise exercise	235
any authority given by the Ohio building code over any labor,	236
material, or equipment furnished by the employee or person for the	237
construction, alteration, or maintenance of a building or the	238
preparation of working drawings or specifications for work within	239
the jurisdictional area of the department. The department shall	240
provide other similarly qualified personnel to enforce the	241
requirements of the Ohio building code as it pertains to such	242
work.	243

(b) The minimum services to be provided by a certified	244
building department.	245

(6) Such certification may be revoked or suspended with	246
respect to any or all of the building occupancies to which it	247
relates on petition to the board of building standards by any	248
person affected by such enforcement or approval of plans, or by	249
the board on its own motion. Hearings shall be held and appeals	250
permitted on any such proceedings for certification or for	251
revocation or suspension of certification in the same manner as	252
provided in section 3781.101 of the Revised Code for other	253
proceedings of the board of building standards.	254

(7) Upon certification, and until such authority is revoked,	255
county and township building departments shall enforce such rules	256
over those occupancies listed in the application without regard to	257
limitation upon the authority of boards of county commissioners	258
under Chapter 307. of the Revised Code or boards of township	259
trustees under Chapter 505. of the Revised Code.	260

(F) Conduct such hearings, in addition to those required by	261
sections 3781.06 to 3781.18 and 3791.04 of the Revised Code, and	262
make such investigations and tests, and require from other state	263
departments, officers, boards, and commissions such information as	264
the board considers necessary or desirable in order to assist it	265
in the discharge of any duty or in the exercise of any power	266
mentioned in this section or in sections 3781.06 to 3781.18 and,	267
3791.04, and 4104.43 of the Revised Code;	268

(G) Formulate rules and establish reasonable fees for the	269
review of all applications submitted where the applicant applies	270
for authority to use a new material, assembly, or product of a	271
manufacturing process. The fee established shall bear some	272
reasonable relationship to the cost of such review or testing of	273
the materials, assembly, or products submitted and notification of	274
approval or disapproval as provided in section 3781.12 of the	275
Revised Code.	276

(H) Compile and publish, in the form of a model code, rules	277
pertaining to one-family, two-family, and three-family dwelling	278
houses that any municipal corporation, township, or county may	279
incorporate into its building code;	280

(I) Cooperate with the director of job and family services	281
when the director promulgates rules pursuant to section 5104.05 of	282
the Revised Code regarding safety and sanitation in type A family	283
day-care homes;	284

(J) Adopt rules to implement the requirements of section	285
3781.108 of the Revised Code.	286

Sec. 3781.19.  There is hereby established in the department	287
of commerce a board of building appeals consisting of five members	288
who shall be appointed by the governor with the advice and consent	289
of the senate. Terms of office shall be for four years, commencing	290
on the fourteenth day of October and ending on the thirteenth day	291
of October. Each member shall hold office from the date of	292
appointment until the end of the term for which the member was	293
appointed. Any member appointed to fill a vacancy occurring prior	294
to the expiration of the term for which the member's predecessor	295
was appointed shall hold office for the remainder of such term.	296
Any member shall continue in office subsequent to the expiration	297
date of the member's term until a successor takes office, or until	298
a period of sixty days has elapsed, whichever occurs first. One	299
member shall be an attorney-at-law, admitted to the bar of this	300
state and of the remaining members, one shall be a registered	301
architect and one shall be a professional engineer, each of whom	302
shall be duly licensed to practice their respective professions in	303
this state, one shall be a fire prevention officer qualified under	304
section 3737.66 of the Revised Code, and one shall be a person	305
with recognized ability in the plumbing or pipefitting profession.	306
No member of the board of building standards shall be a member of	307
the board of building appeals. Each member shall be paid an amount	308
fixed pursuant to Chapter 124. of the Revised Code per diem. The	309
department shall provide and assign to the board such employees as	310
are required by the board to perform its functions. The board may	311
adopt its own rules of procedure not inconsistent with sections	312
3781.06 to 3781.18 and 3791.04 of the Revised Code, and may change	313
them in its discretion. The board may establish reasonable fees,	314
based on actual costs for administration of filing and processing,	315
not to exceed two hundred dollars, for the costs of filing and	316
processing appeals. A full and complete record of all proceedings	317
of the board shall be kept and be open to public inspection.	318

In the enforcement by any department of the state or any	319
political subdivision of this chapter and Chapter 3791., and	320
sections 3737.41, 3737.42, 4104.02, 4104.06, 4104.43, 4104.44,	321
4104.45, 4105.011, and 4105.11 of the Revised Code and any rule	322
made thereunder, such department is the agency referred to in	323
sections 119.07, 119.08, and 119.10 of the Revised Code.	324

The appropriate municipal or county board of appeals, where	325
one exists, certified pursuant to section 3781.20 of the Revised	326
Code shall conduct the adjudication hearing referred to in	327
sections 119.09 to 119.13 and required by section 3781.031 of the	328
Revised Code. If there is no certified municipal or county board	329
of appeals, the board of building appeals shall conduct the	330
adjudication hearing. If the adjudication hearing concerns section	331
3781.111 of the Revised Code or any rule made thereunder,	332
reasonable notice of the time, date, place, and subject of the	333
hearing shall be given to any local corporation, association, or	334
other organization composed of or representing handicapped	335
persons, as defined in section 3781.111 of the Revised Code, or if	336
there is no local organization, then to any statewide corporation,	337
association, or other organization composed of or representing	338
handicapped persons.	339

In addition to the provisions of Chapter 119. of the Revised	340
Code, the municipal, county, or state board of building appeals,	341
as the agency conducting the adjudication hearing, may reverse or	342
modify the order of the enforcing agency if it finds that the	343
order is contrary to this chapter and Chapters 3791. and 4104.,	344
and sections 3737.41, 3737.42, 4105.011 and 4105.11 of the Revised	345
Code and any rule made thereunder or to a fair interpretation or	346
application of such laws or any rule made thereunder, or that a	347
variance from the provisions of such laws or any rule made	348
thereunder, in the specific case, will not be contrary to the	349
public interest where a literal enforcement of such provisions	350
will result in unnecessary hardship.	351

The state board of building appeals or a certified municipal	352
or county board of appeals shall render its decision within thirty	353
days after the date of the adjudication hearing. Following the	354
adjudication hearing, any municipal or county officer, official	355
municipal or county board, or person who was a party to the	356
hearing before the municipal or county board of appeals may apply	357
to the state board of appeals for a de novo hearing before the	358
state board, or may appeal directly to the court of common pleas	359
pursuant to section 3781.031 of the Revised Code.	360

In addition, any local corporation, association, or other	361
organization composed of or representing handicapped persons as	362
defined in section 3781.111 of the Revised Code, or, if no local	363
corporation, association, or organization exists, then any	364
statewide corporation, association, or other organization composed	365
of or representing handicapped persons may apply for the de novo	366
hearing or appeal to the court of common pleas from any decision	367
of a certified municipal or county board of appeals interpreting,	368
applying, or granting a variance from section 3781.111 of the	369
Revised Code and any rule made thereunder. Application for a de	370
novo hearing before the state board shall be made no later than	371
thirty days after the municipal or county board renders its	372
decision.	373

The state board of building appeals or the appropriate	374
certified local board of building appeals shall grant variances	375
and exemptions from the requirements of section 3781.108 of the	376
Revised Code in accordance with rules adopted by the board of	377
building standards pursuant to division (J) of section 3781.10 of	378
the Revised Code.	379

The state board of building appeals or the appropriate	380
certified local board of building appeals shall, in granting a	381
variance or exemption from section 3781.108 of the Revised Code,	382
in addition to any other considerations the state or the	383
appropriate local board determines appropriate, consider the	384
architectural and historical significance of the building.	385

Sec. 4104.41.  As used in sections 4104.41 to 4104.45 of the	386
Revised Code:	387

(A) "Building services piping" means piping systems and their	388
component parts that are part of a building system and that	389
promote the safe, sanitary, and energy efficient occupancy of a	390
building. "Building services piping" includes, but is not limited	391
to, cold and hot potable water distribution for plumbing fixtures;	392
sanitary lines leading from plumbing fixtures; nonflammable	393
medical gas systems; medical oxygen systems; medical vacuum	394
systems; fire protection piping systems and compressed air in dry	395
systems; refrigeration, chilled water, condenser, cooling tower	396
water, brine, and water/antifreeze systems; steam, steam	397
condensate, and hot water piping systems; heating and cooling	398
piping systems; and fuel oil piping and fuel gas piping for	399
heating, cooling, and cooking applications.	400

(B) "Power piping" means piping systems and their component	401
parts, that are not building services piping systems, and that may	402
be installed within electric power generating stations, industrial	403
and institutional plants, utility geothermal heating systems, and	404
central and district heating and cooling systems. "Power piping"	405
includes, but is not limited to, piping used in the distribution	406
of plant and process steam at boiler pressures greater than	407
fifteen pounds per square inch gauge, high temperature water	408
piping from high pressure and high temperature boilers, power	409
boiler steam condensate piping, high pressure and high temperature	410
water condensate piping, and compressed air and hydraulic piping	411
upstream of the first stop valve off a system distribution header.	412

(C) "Process piping" means piping systems and their component	413
parts, that are not building services or power piping systems, and	414
that may be installed in petroleum refineries, chemical,	415
pharmaceutical, textile, paper, semiconductor, and cryogenic	416
plants, and related processing plants and terminals.	417

Sec. 4104.42. (A) The owner of any power piping or process	418
piping system shall ensure that all of the following are performed	419
in compliance with applicable sections of the B31 standards	420
contained in the code for pressure piping, published by the	421
American society of mechanical engineers:	422

(1) The design, fabrication, assembly, installation, testing,	423
examination, and inspection of power and process piping systems;	424

(2) Qualification of personnel and qualification of welding	425
and brazing procedures;	426

(3) The implementation of an inspection program.

427

(B) The owner of a power piping or process piping system	428
shall do both of the following:	429

(1) Maintain for five years complete records documenting the	430
design, examination, and testing of the piping system that include	431
all of the following:	432

(a) The specific edition of the code for pressure piping used	433
in the design;	434

(b) The design assumptions;

435

(c) The calculations, piping material specifications, and	436
construction documents for the piping;	437

(d) The records of piping alterations;

438

(e) The piping examination and inspection records.

439

(2) Disclose the types and quantities of flammable,	440
combustible, or hazardous materials proposed to be used in the	441
facility to the building and fire code enforcement authorities who	442
have inspection authority to enable those authorities to determine	443
compliance with the rules the board of building standards adopts	444
pursuant to section 3781.10 of the Revised Code and the rules the	445
state fire marshal adopts pursuant to section 3737.82 of the	446
Revised Code.	447

(C) No person or state agency shall require that the records	448
described in division (B)(1) of this section be submitted to the	449
division of industrial compliance in the department of commerce or	450
to a certified building department for approval.	451

(D) Nothing in this section limits the application of	452
Chapters 4703. and 4733. of the Revised Code.	453

Sec. 4104.43. (A)(1) The board of building standards shall	454
adopt rules establishing requirements for the design,	455
installation, inspection of and design review procedure for	456
building services piping.	457

(2) The board of building standards shall adopt rules	458
establishing requirements for the design, installation, inspection	459
of and design review procedure for nonflammable medical gas,	460
medical oxygen, and medical vacuum piping systems.	461

(B) A municipal, township, or county building department	462
certified under division (E) of section 3781.10 of the Revised	463
Code shall enforce the rules the board adopts pursuant to division	464
(A)(2) of this section if that building department requests and	465
obtains special certification to enforce those rules.	466

(C) In a health district where no municipal, township, or	467
county building department is specially certified under division	468
(B) of this section, an employee of the health district shall	469
enforce the rules adopted pursuant to division (A)(2) of this	470
section if both of the following conditions are satisfied:	471

(1) The health district employee requests and obtains special	472
certification by the board to enforce those rules.	473

(2) The health district notifies the superintendent of the	474
division of industrial compliance in the department of commerce	475
that the health district's specially certified employee shall	476
enforce those rules.	477

(D) In a jurisdiction where enforcement authority as	478
described in divisions (B) and (C) of this section does not exist,	479
the superintendent of the division of industrial compliance shall	480
enforce the rules the board adopts pursuant to division (A)(2) of	481
this section.	482

Sec. 4104.44. All welding and brazing of metallic piping	483
systems shall be performed in accordance with section IX of the	484
boiler and pressure vessel code, published by the American society	485
of mechanical engineers. The owner shall maintain, at the job	486
site, the certified performance qualification records of all	487
welders and brazers employed at the facility. The owner shall	488
submit copies of all certified welding and brazing procedure	489
specifications, procedure qualification records, and performance	490
qualification records for building services piping for review to	491
the superintendent of the division of industrial compliance in the	492
department of commerce in accordance with rules the superintendent	493
adopts. The submission shall be accompanied by the fee the	494
superintendent establishes.	495

Sec. 4104.45. A person who inspects the installation of or	496
witnesses the testing of any nonflammable medical gas and vacuum	497
piping system shall be certified to do so pursuant to division (E)	498
of section 3781.10 of the Revised Code.	499

Sec. 4123.01.  As used in this chapter:

500

(A)(1) "Employee" means:

501

(a) Every person in the service of the state, or of any	502
county, municipal corporation, township, or school district	503
therein, including regular members of lawfully constituted police	504
and fire departments of municipal corporations and townships,	505
whether paid or volunteer, and wherever serving within the state	506
or on temporary assignment outside thereof, and executive officers	507
of boards of education, under any appointment or contract of hire,	508
express or implied, oral or written, including any elected	509
official of the state, or of any county, municipal corporation, or	510
township, or members of boards of education.	511

As used in division (A)(1)(a) of this section, the term	512
"employee" includes the following persons when responding to an	513
inherently dangerous situation that calls for an immediate	514
response on the part of the person, regardless of whether the	515
person is within the limits of the jurisdiction of the person's	516
regular employment or voluntary service when responding, on the	517
condition that the person responds to the situation as the person	518
otherwise would if the person were on duty in the person's	519
jurisdiction:	520

(i) Off-duty peace officers. As used in division (A)(1)(a)(i)	521
of this section, "peace officer" has the same meaning as in	522
section 2935.01 of the Revised Code.	523

(ii) Off-duty firefighters, whether paid or volunteer, of a	524
lawfully constituted fire department.	525

(iii) Off-duty first responders, emergency medical	526
technicians-basic, emergency medical technicians-intermediate, or	527
emergency medical technicians-paramedic, whether paid or	528
volunteer, of an ambulance service organization or emergency	529
medical service organization pursuant to Chapter 4765. of the	530
Revised Code.	531

(b) Every person in the service of any person, firm, or	532
private corporation, including any public service corporation,	533
that (i) employs one or more persons regularly in the same	534
business or in or about the same establishment under any contract	535
of hire, express or implied, oral or written, including aliens and	536
minors, household workers who earn one hundred sixty dollars or	537
more in cash in any calendar quarter from a single household and	538
casual workers who earn one hundred sixty dollars or more in cash	539
in any calendar quarter from a single employer, or (ii) is bound	540
by any such contract of hire or by any other written contract, to	541
pay into the state insurance fund the premiums provided by this	542
chapter.	543

(c) Every person who performs labor or provides services	544
pursuant to a construction contract, as defined in section 4123.79	545
of the Revised Code, if at least ten of the following criteria	546
apply:	547

(i) The person is required to comply with instructions from	548
the other contracting party regarding the manner or method of	549
performing services;	550

(ii) The person is required by the other contracting party to	551
have particular training;	552

(iii) The person's services are integrated into the regular	553
functioning of the other contracting party;	554

(iv) The person is required to perform the work personally;

555

(v) The person is hired, supervised, or paid by the other	556
contracting party;	557

(vi) A continuing relationship exists between the person and	558
the other contracting party that contemplates continuing or	559
recurring work even if the work is not full time;	560

(vii) The person's hours of work are established by the other	561
contracting party;	562

(viii) The person is required to devote full time to the	563
business of the other contracting party;	564

(ix) The person is required to perform the work on the	565
premises of the other contracting party;	566

(x) The person is required to follow the order of work set by	567
the other contracting party;	568

(xi) The person is required to make oral or written reports	569
of progress to the other contracting party;	570

(xii) The person is paid for services on a regular basis such	571
as hourly, weekly, or monthly;	572

(xiii) The person's expenses are paid for by the other	573
contracting party;	574

(xiv) The person's tools and materials are furnished by the	575
other contracting party;	576

(xv) The person is provided with the facilities used to	577
perform services;	578

(xvi) The person does not realize a profit or suffer a loss	579
as a result of the services provided;	580

(xvii) The person is not performing services for a number of	581
employers at the same time;	582

(xviii) The person does not make the same services available	583
to the general public;	584

(xix) The other contracting party has a right to discharge	585
the person;	586

(xx) The person has the right to end the relationship with	587
the other contracting party without incurring liability pursuant	588
to an employment contract or agreement.	589

Every person in the service of any independent contractor or	590
subcontractor who has failed to pay into the state insurance fund	591
the amount of premium determined and fixed by the administrator of	592
workers' compensation for the person's employment or occupation or	593
if a self-insuring employer has failed to pay compensation and	594
benefits directly to the employer's injured and to the dependents	595
of the employer's killed employees as required by section 4123.35	596
of the Revised Code, shall be considered as the employee of the	597
person who has entered into a contract, whether written or verbal,	598
with such independent contractor unless such employees or their	599
legal representatives or beneficiaries elect, after injury or	600
death, to regard such independent contractor as the employer.	601

(2) "Employee" does not mean:

602

(a) A duly ordained, commissioned, or licensed minister or	603
assistant or associate minister of a church in the exercise of	604
ministry;	605

(b) Any officer of a family farm corporation; or

606

(c) An individual incorporated as a corporation; or

607

(d) An individual who otherwise is an employee of an employer	608
but who signs the waiver and affidavit specified in section	609
4123.15 of the Revised Code on the condition that the	610
administrator has granted a waiver and exception to the	611
individual's employer under section 4123.15 of the Revised Code.	612

Any employer may elect to include as an "employee" within	613
this chapter, any person excluded from the definition of	614
"employee" pursuant to division (A)(2) of this section. If an	615
employer is a partnership, sole proprietorship, individual	616
incorporated as a corporation, or family farm corporation, such	617
employer may elect to include as an "employee" within this	618
chapter, any member of such partnership, the owner of the sole	619
proprietorship, the individual incorporated as a corporation, or	620
the officers of the family farm corporation. In the event of an	621
election, the employer shall serve upon the bureau of workers'	622
compensation written notice naming the persons to be covered,	623
include such employee's remuneration for premium purposes in all	624
future payroll reports, and no person excluded from the definition	625
of "employee" pursuant to division (A)(2) of this section,	626
proprietor, individual incorporated as a corporation, or partner	627
shall be deemed an employee within this division until the	628
employer has served such notice.	629

For informational purposes only, the bureau shall prescribe	630
such language as it considers appropriate, on such of its forms as	631
it considers appropriate, to advise employers of their right to	632
elect to include as an "employee" within this chapter a sole	633
proprietor, any member of a partnership, an individual	634
incorporated as a corporation, the officers of a family farm	635
corporation, or a person excluded from the definition of	636
"employee" under division (A)(2)(a) of this section, that they	637
should check any health and disability insurance policy, or other	638
form of health and disability plan or contract, presently covering	639
them, or the purchase of which they may be considering, to	640
determine whether such policy, plan, or contract excludes benefits	641
for illness or injury that they might have elected to have covered	642
by workers' compensation.	643

(B) "Employer" means:

644

(1) The state, including state hospitals, each county,	645
municipal corporation, township, school district, and hospital	646
owned by a political subdivision or subdivisions other than the	647
state;	648

(2) Every person, firm, professional employer organization as	649
defined in section 4125.01 of the Revised Code, and private	650
corporation, including any public service corporation, that (a)	651
has in service one or more employees or shared employees regularly	652
in the same business or in or about the same establishment under	653
any contract of hire, express or implied, oral or written, or (b)	654
is bound by any such contract of hire or by any other written	655
contract, to pay into the insurance fund the premiums provided by	656
this chapter.	657

All such employers are subject to this chapter. Any member of	658
a firm or association, who regularly performs manual labor in or	659
about a mine, factory, or other establishment, including a	660
household establishment, shall be considered an employee in	661
determining whether such person, firm, or private corporation, or	662
public service corporation, has in its service, one or more	663
employees and the employer shall report the income derived from	664
such labor to the bureau as part of the payroll of such employer,	665
and such member shall thereupon be entitled to all the benefits of	666
an employee.	667

(C) "Injury" includes any injury, whether caused by external	668
accidental means or accidental in character and result, received	669
in the course of, and arising out of, the injured employee's	670
employment. "Injury" does not include:	671

(1) Psychiatric conditions except where the conditions have	672
arisen from an injury or occupational disease;	673

(2) Injury or disability caused primarily by the natural	674
deterioration of tissue, an organ, or part of the body;	675

(3) Injury or disability incurred in voluntary participation	676
in an employer-sponsored recreation or fitness activity if the	677
employee signs a waiver of the employee's right to compensation or	678
benefits under this chapter prior to engaging in the recreation or	679
fitness activity.	680

(D) "Child" includes a posthumous child and a child legally	681
adopted prior to the injury.	682

(E) "Family farm corporation" means a corporation founded for	683
the purpose of farming agricultural land in which the majority of	684
the voting stock is held by and the majority of the stockholders	685
are persons or the spouse of persons related to each other within	686
the fourth degree of kinship, according to the rules of the civil	687
law, and at least one of the related persons is residing on or	688
actively operating the farm, and none of whose stockholders are a	689
corporation. A family farm corporation does not cease to qualify	690
under this division where, by reason of any devise, bequest, or	691
the operation of the laws of descent or distribution, the	692
ownership of shares of voting stock is transferred to another	693
person, as long as that person is within the degree of kinship	694
stipulated in this division.	695

(F) "Occupational disease" means a disease contracted in the	696
course of employment, which by its causes and the characteristics	697
of its manifestation or the condition of the employment results in	698
a hazard which distinguishes the employment in character from	699
employment generally, and the employment creates a risk of	700
contracting the disease in greater degree and in a different	701
manner from the public in general.	702

(G) "Self-insuring employer" means an employer who is granted	703
the privilege of paying compensation and benefits directly under	704
section 4123.35 of the Revised Code, including a board of county	705
commissioners for the sole purpose of constructing a sports	706
facility as defined in section 307.696 of the Revised Code,	707
provided that the electors of the county in which the sports	708
facility is to be built have approved construction of a sports	709
facility by ballot election no later than November 6, 1997.	710

(H) "Public employer" means an employer as defined in	711
division (B)(1) of this section.	712

Sec. 4123.291.  (A) An adjudicating committee appointed by	713
the administrator of workers' compensation to hear any matter	714
specified in divisions (B)(1) to (6)(7) of this section shall hear	715
the matter within sixty days of the date on which an employer	716
files the request, protest, or petition. An employer desiring to	717
file a request, protest, or petition regarding any matter	718
specified in divisions (B)(1) to (6)(7) of this section shall file	719
the request, protest, or petition to the adjudicating committee on	720
or before twenty-four months after the administrator sends notice	721
of the determination about which the employer is filing the	722
request, protest, or petition.	723

(B) An employer who is adversely affected by a decision of an	724
adjudicating committee appointed by the administrator may appeal	725
the decision of the committee to the administrator or the	726
administrator's designee. The employer shall file the appeal in	727
writing within thirty days after the employer receives the	728
decision of the adjudicating committee. The administrator or the	729
designee shall hear the appeal and hold a hearing, provided that	730
the decision of the adjudicating committee relates to one of the	731
following:	732

(1) An employer request for a waiver of a default in the	733
payment of premiums pursuant to section 4123.37 of the Revised	734
Code;	735

(2) An employer request for the settlement of liability as a	736
noncomplying employer under section 4123.75 of the Revised Code;	737

(3) An employer petition objecting to the assessment of a	738
premium pursuant to section 4123.37 of the Revised Code and the	739
rules adopted pursuant to that section;	740

(4) An employer request for the abatement of penalties	741
assessed pursuant to section 4123.32 of the Revised Code and the	742
rules adopted pursuant to that section;	743

(5) An employer protest relating to an audit finding or a	744
determination of a manual classification, experience rating, or	745
transfer or combination of risk experience;	746

(6) Any decision relating to any other risk premium matter	747
under Chapters 4121., 4123., and 4131. of the Revised Code;	748

(7) An employer petition objecting to the amount of security	749
required under division (C) of section 4125.05 of the Revised Code	750
and the rules adopted pursuant to that section.	751

Sec. 4125.01. As used in this chapter:

752

(A) "Client employer" means a sole proprietor, partnership,	753
association, limited liability company, or corporation that enters	754
into a professional employer organization agreement and is	755
assigned shared employees by the professional employer	756
organization.	757

(B) "Coemploy" means the sharing of the responsibilities and	758
liabilities of being an employer.	759

(C) "Professional employer organization" means a sole	760
proprietor, partnership, association, limited liability company,	761
or corporation that enters into an agreement with one or more	762
client employers for the purpose of coemploying all or part of the	763
client employer's workforce at the client employer's work site.	764

(D) "Professional employer organization agreement" means a	765
written contract to coemploy employees between a professional	766
employer organization and a client employer with a duration of not	767
less than twelve months in accordance with the requirements of	768
this chapter.	769

(E) "Shared employee" means an individual intended to be	770
assigned to a client employer on a permanent basis, not as a	771
temporary supplement to the client employer's workforce, who is	772
coemployed by a professional employer organization and a client	773
employer pursuant to a professional employer organization	774
agreement.	775

(F) "Trade secret" has the same meaning as in section 1333.61	776
of the Revised Code.	777

Sec. 4125.02. The administrator of the bureau of workers'	778
compensation shall adopt rules in accordance with Chapter 119. of	779
the Revised Code to administer and enforce this chapter.	780

Sec. 4125.03. (A) The professional employer organization with	781
whom a shared employee is coemployed shall do all of the	782
following:	783

(1) Pay wages associated with a shared employee pursuant to	784
the terms and conditions of compensation in the professional	785
employer organization agreement between the professional employer	786
organization and the client employer;	787

(2) Pay all related payroll taxes associated with a shared	788
employee independent of the terms and conditions contained in the	789
professional employer organization agreement between the	790
professional employer organization and the client employer;	791

(3) Maintain workers' compensation coverage, pay all workers'	792
compensation premiums and manage all workers' compensation claims,	793
filings, and related procedures associated with a shared employee	794
in compliance with Chapters 4121. and 4123. of the Revised Code,	795
except that when shared employees include family farm officers,	796
ordained ministers, or corporate officers of the client employer,	797
payroll reports shall include the entire amount of payroll	798
associated with those persons;	799

(4) Provide written notice to each shared employee it assigns	800
to perform services to a client employer of the relationship	801
between and the responsibilities of the professional employer	802
organization and the client employer;	803

(5) Maintain complete records separately listing the manual	804
classifications of each client employer and the payroll reported	805
to each manual classification for each client employer for each	806
payroll reporting period during the time period covered in the	807
professional employer organization agreement;	808

(6) Maintain a record of workers' compensation claims for	809
each client employer;	810

(7) Within fourteen days after receiving notice from the	811
bureau of workers' compensation that a refund or rebate will be	812
applied to workers' compensation premiums, provide a copy of that	813
notice to any client employer to whom that notice is relevant.	814

(B) The professional employer organization with whom a shared	815
employee is coemployed has a right of direction and control over	816
each shared employee assigned to a client employer's location.	817

(C) Notwithstanding division (B) of this section, a client	818
employer may retain sufficient direction and control over a shared	819
employee as is necessary to conduct the client employer's business	820
and to discharge any fiduciary responsibility that it may have, or	821
to comply with any applicable licensure, regulatory, or statutory	822
requirement of the client employer.	823

Sec. 4125.04. (A) When a client employer enters into a	824
professional employer organization agreement with a professional	825
employer organization, the professional employer organization is	826
the employer of record and the succeeding employer for the	827
purposes of determining a workers' compensation experience rating	828
pursuant to Chapter 4123. of the Revised Code.	829

(B) Pursuant to Section 35 of Article II, Ohio Constitution,	830
and section 4123.74 of the Revised Code, the exclusive remedy for	831
a shared employee to recover for injuries, diseases, or death	832
incurred in the course of and arising out of the employment	833
relationship against either the professional employer organization	834
or the client employer are those benefits provided under Chapters	835
4121. and 4123. of the Revised Code.	836

Sec. 4125.05. (A) Not later than thirty days after the	837
effective date of this section or not later than thirty days after	838
the formation of a professional employer organization, whichever	839
date occurs later, a professional employer organization operating	840
in this state shall register with the administrator of the bureau	841
of workers' compensation on forms provided by the administrator.	842
Following initial registration, each professional employer	843
organization shall register with the administrator annually on or	844
before the thirty-first day of December.	845

(B) Initial registration and each annual registration renewal	846
shall include all of the following:	847

(1) A list of each of the professional employer	848
organization's client employers current as of the date of	849
registration for purposes of initial registration or current as of	850
the date of annual registration renewal, or within fourteen days	851
of adding or releasing a client, that includes the client	852
employer's name, address, federal tax identification number, and	853
bureau of workers' compensation risk number;	854

(2) A fee as determined by the administrator;

855

(3) The name or names under which the professional employer	856
organization conducts business;	857

(4) The address of the professional employer organization's	858
principal place of business and the address of each office it	859
maintains in this state;	860

(5) The professional employer organization's taxpayer or	861
employer identification number;	862

(6) A list of each state in which the professional employer	863
organization has operated in the preceding five years, and the	864
name, corresponding with each state, under which the professional	865
employer organization operated in each state, including any	866
alternative names, names of predecessors, and if known, successor	867
business entities.	868

(C)(1) The administrator, with the advice and consent of the	869
workers' compensation oversight commission, shall adopt rules in	870
accordance with Chapter 119. of the Revised Code to require,	871
except as otherwise specified in division (C)(2) of this section,	872
a professional employer organization to provide security in the	873
form of a bond or letter of credit assignable to the Ohio bureau	874
of workers' compensation not to exceed an amount equal to the	875
premiums and assessments incurred for the two most recent payroll	876
periods, prior to any discounts or dividends, to meet the	877
financial obligations of the professional employer organization	878
pursuant to this chapter and Chapters 4121. and 4123. of the	879
Revised Code.	880

(2) As an alternative to providing security in the form of a	881
bond or letter of credit, the administrator shall permit a	882
professional employer organization to make periodic payments of	883
prospective premiums and assessments to the bureau or to submit	884
proof of being certified by either a nationally recognized	885
organization that certifies professional employer organizations or	886
by a government entity approved by the administrator.	887

(3) A professional employer organization may appeal the	888
amount of the security required pursuant to rules adopted under	889
division (C)(1) of this section in accordance with section	890
4123.291 of the Revised Code.	891

(D) Notwithstanding division (C) of this section, a	892
professional employer organization that qualifies for	893
self-insurance or retrospective rating under section 4123.29 or	894
4123.35 of the Revised Code shall abide by the financial	895
disclosure and security requirements pursuant to those sections	896
and the rules adopted under those sections in place of the	897
requirements specified in division (C) of this section or	898
specified in rules adopted pursuant to that division.	899

(E) Except to the extent necessary for the administrator to	900
administer the statutory duties of the administrator and for	901
employees of the state to perform their official duties, all	902
records, reports, client lists, and other information obtained	903
from a professional employer organization under divisions (A) and	904
(B) of this section are confidential and shall be considered trade	905
secrets and shall not be published or open to public inspection.	906

(F) The list described in division (B)(1) of this section	907
shall be considered a trade secret.	908

(G) The administrator shall establish the fee described in	909
division (B)(2) of this section in an amount that does not exceed	910
the cost of the administration of the initial and renewal	911
registration process.	912

Sec. 4125.06. (A) In accordance with Chapter 119. of the	913
Revised Code, the administrator of the bureau of workers'	914
compensation may deny registration or revoke the registration of a	915
professional employer organization and rescind its status as a	916
coemployer upon a finding that the professional employer	917
organization has done any of the following:	918

(1) Obtained or attempted to obtain registration through	919
misrepresentation, misstatement of a material fact, or fraud;	920

(2) Misappropriated any funds of the client employer;

921

(3) Used fraudulent or coercive practices to obtain or retain	922
business or demonstrated financial irresponsibility;	923

(4) Failed to appear, without reasonable cause or excuse, in	924
response to a subpoena lawfully issued by the administrator;	925

(5) Failed to comply with the requirements of this chapter.

926

(B) The administrator's decision to deny or revoke a	927
professional employer organization's registration or to rescind	928
its status as a coemployer is stayed pending the exhaustion of all	929
administrative appeals by the professional employer organization.	930

The administrator shall adopt rules that require that when an	931
employer contacts the bureau of workers' compensation to determine	932
whether a particular professional employer organization is	933
registered, if the administrator has denied or revoked that	934
professional employer organization's registration or rescinded its	935
status as a coemployer, and if all administrative appeals are not	936
yet exhausted when the employer inquires, the appropriate bureau	937
personnel shall inform the inquiring employer of the denial,	938
revocation, or rescission and the fact that the professional	939
employer organization has the right to appeal the administrator's	940
decision.	941

(C) Upon revocation of the registration of a professional	942
employer organization, each client employer associated with that	943
professional employer organization shall file payroll reports and	944
pay workers' compensation premiums directly to the administrator	945
on its own behalf at a rate determined by the administrator based	946
solely on the claims experience of the client employer.	947

(D) Upon revocation of a professional employer organization's	948
registration, each client employer associated with that	949
professional employer organization shall file on its own behalf	950
the appropriate documents or data with all state and federal	951
agencies as required by law with respect to any shared employee	952
the client employer and the professional employer organization	953
shared.	954

Sec. 4125.07. Not later than fourteen calendar days after the	955
date on which a professional employer organization agreement is	956
terminated, the professional employer organization is adjudged	957
bankrupt, the professional employer organization ceases operations	958
within the state of Ohio, or the registration of the professional	959
employer organization is revoked, the professional employer	960
organization shall submit to the administrator of the bureau of	961
workers' compensation and each client employer associated with	962
that professional employer organization a completed workers'	963
compensation lease termination notice form provided by the	964
administrator. The completed form shall include all client payroll	965
and claim information listed in a format specified by the	966
administrator and notice of all workers' compensation claims that	967
have been reported to the professional employer organization in	968
accordance with its internal reporting policies.	969

Sec. 4125.08. Nothing in this chapter exempts a professional	970
employer organization, client employer, or shared employee from	971
any applicable federal, state, or local licensing, registration,	972
or certification statutes or regulations. An individual required	973
to obtain and maintain a license, registration, or certification	974
under law and who is a shared employee of a professional employer	975
organization and a client employer is an employee of the client	976
employer for purposes of obtaining and maintaining the appropriate	977
license, registration, or certification as required by law. A	978
professional employer organization does not engage in any	979
occupation, trade, or profession that requires a license,	980
certification, or registration solely by entering into a	981
professional employer agreement with a client employer or	982
coemploying a shared employee.	983

Sec. 4125.09. Nothing contained in this chapter or in any	984
professional employer organization agreement shall affect, modify,	985
or amend any collective bargaining agreement that exists on the	986
effective date of this section. Nothing in this chapter shall	987
alter the rights or obligations of any client employer,	988
professional employer organization, or shared employee under the	989
"National Labor Relations Act," 49 Stat. 449, 29 U.S.C.A. 151 et	990
seq., the "Railway Labor Act," 44 Stat. 577, 45 U.S.C.A. 151, or	991
any other applicable federal or state law.	992

Sec. 4125.99. Whoever violates division (A) of section	993
4125.05 of the Revised Code is guilty of a minor misdemeanor.	994
Whoever knowingly violates division (A) of section 4125.05 of the	995
Revised Code is guilty of a misdemeanor of the second degree.	996

Section 2. That existing sections 121.083, 3781.10, 3781.19,	997
4123.01, and 4123.291 and sections        Sec. 4104.41. ,        Sec. 4104.42. ,        Sec. 4104.43. ,	998
Sec. 4104.44. ,        Sec. 4104.45. , and        Sec. 4104.47.  of the Revised Code are hereby	999
repealed.	1000

Section 3. That Section 3 of Sub. H.B. 75 of the 124th	1001
General Assembly be amended to read as follows:	1002

Sec. 3. (A) The Administrator of Workers' Compensation, with	1003
the advice and consent of the Workers' Compensation Oversight	1004
Commission, may adopt rules that identify specified medical	1005
conditions that have a historical record of being allowed whenever	1006
included in a claim. The Administrator shall designate the rules	1007
to be effective only until three years after the effective date of	1008
this sectionSeptember 30, 2005. The Administrator, for a period	1009
of three years after the effective date of this sectionuntil	1010
September 30, 2005, may grant immediate allowance of any medical	1011
condition identified in those rules upon the filing of a claim	1012
involving that medical condition and may make immediate payment of	1013
medical bills for any medical condition identified in those rules	1014
that is included in a claim. If an employer contests the allowance	1015
of a claim involving any medical condition identified in those	1016
rules, and the claim is disallowed, payment for the medical	1017
condition included in that claim shall be charged to and paid from	1018
the surplus fund created under section 4123.34 of the Revised	1019
Code.	1020

(B) The Administrator shall establish a pilot program to	1021
determine the effectiveness of implementing division (A) of this	1022
section.	1023

Section 4. That existing Section 3 of Sub. H.B. 75 of the	1024
124th General Assembly is hereby repealed.	1025