As Reported by the Senate Insurance, Commerce and Labor Committee

125th General Assembly
Regular Session
2003-2004
Sub. H. B. No. 91


Representatives Young, Core, Grendell, Calvert, Beatty, Buehrer 


A BILL
To amend sections 2305.24, 2305.25, 4121.121, 1
4121.44, 4123.01, 4123.31, 4123.342, and 4123.80 2
and to enact sections 4121.021 and 4123.15 of the 3
Revised Code to make appropriations for the Bureau 4
of Workers' Compensation for the biennium 5
beginning July 1, 2003, and ending June 30, 2005, 6
to authorize and provide conditions that govern 7
the operation of Bureau and Industrial Commission 8
programs, and to authorize an exemption from 9
participation in the workers' compensation 10
insurance program for certain employers and 11
employees based upon religious tenets or beliefs.12


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

       Section 1. That sections 2305.24, 2305.25, 4121.121, 4121.44, 13
4123.01, 4123.31, 4123.342, and 4123.80 be amended and sections 14
4121.021 and 4123.15 of the Revised Code be enacted to read as 15
follows:16

       Sec. 2305.24.  Any information, data, reports, or records17
made available to a quality assurance committee or utilization18
committee of a hospital or long-term care facility or of any19
not-for-profit health care corporation that is a member of the20
hospital or long-term care facility or of which the hospital or21
long-term care facility is a member shall beare confidential and22
shall be used by the committee and the committee members only in23
the exercise of the proper functions of the committee. Any24
information, data, reports, or records made available to a25
utilization committee of a state or local medical society composed26
of doctors of medicine or doctors of osteopathic medicine shall be27
are confidential and shall be used by the committee and the28
committee members only in the exercise of the proper functions of29
the committee. A right of action similar to that a patient may30
have against an attending physician for misuse of information,31
data, reports, or records arising out of the physician-patient32
relationship shall accrue against a member of a quality assurance33
committee or utilization committee for misuse of any information,34
data, reports, or records furnished to the committee by an35
attending physician. No physician, institution, hospital, or36
long-term care facility furnishing information, data, reports, or37
records to a committee with respect to any patient examined or38
treated by the physician or confined in the institution, hospital,39
or long-term care facility shall, by reason of the furnishing, be 40
deemed liable in damages to any person, or be held to answer for 41
betrayal of a professional confidence within the meaning and 42
intent of section 4731.22 of the Revised Code. Information, data, 43
or reports furnished to a utilization committee of a state or 44
local medical society shall contain no name of any person involved 45
therein.46

       Any information, data, reports, or records made available to 47
a quality assurance committee of the bureau of workers' 48
compensation responsible for reviewing the professional 49
qualifications and the performance of providers conducting medical 50
examinations or file reviews for the bureau are confidential and 51
shall be used by the committee and the committee members only in 52
the exercise of the proper functions of the committee.53

       As used in this section, "utilization committee" is the54
committee established to administer a utilization review plan of a55
hospital, of a not-for-profit health care corporation which is a56
member of the hospital or of which the hospital is a member, or of57
a skilled nursing facility as provided in the "Health Insurance58
for the Aged Act," 79 Stat. 313 (1965), 42 U.S.C. 1395x(k).59

       Sec. 2305.25. As used in this section and sections 2305.25160
to 2305.253 of the Revised Code:61

       (A)(1) "Health care entity" means an entity, whether acting62
on its own behalf or on behalf of or in affiliation with other63
health care entities, that conducts as part of its regular64
business activities professional credentialing or quality review65
activities involving the competence of, professional conduct of,66
or quality of care provided by health care providers, including67
both individuals who provide health care and entities that provide68
health care.69

       (2) "Health care entity" includes any entity described in70
division (A)(1) of this section, regardless of whether it is a71
government entity; for-profit or nonprofit corporation; limited72
liability company; partnership; professional corporation; state or73
local society composed of physicians, dentists, optometrists,74
psychologists, or pharmacists; or other health care organization.75

       (B) "Health insuring corporation" means an entity that holds76
a certificate of authority under Chapter 1751. of the Revised77
Code. "Health insuring corporation" includes wholly owned78
subsidiaries of a health insuring corporation.79

       (C) "Hospital" means either of the following:80

       (1) An institution that has been registered or licensed by81
the department of health as a hospital;82

       (2) An entity, other than an insurance company authorized to83
do business in this state, that owns, controls, or is affiliated84
with an institution that has been registered or licensed by the85
department of health as a hospital.86

       (D) "Incident report or risk management report" means a87
report of an incident involving injury or potential injury to a88
patient as a result of patient care provided by health care89
providers, including both individuals who provide health care and90
entities that provide health care, that is prepared by or for the91
use of a peer review committee of a health care entity and is92
within the scope of the functions of that committee.93

       (E)(1) "Peer review committee" means a utilization review94
committee, quality assessment committee, performance improvement95
committee, tissue committee, credentialing committee, or other96
committee that does either of the following:97

       (a) Conducts professional credentialing or quality review98
activities involving the competence of, professional conduct of,99
or quality of care provided by health care providers, including100
both individuals who provide health care and entities that provide101
health care;102

       (b) Conducts any other attendant hearing process initiated as 103
a result of a peer review committee's recommendations or actions.104

       (2) "Peer review committee" includes all of the following:105

       (a) A peer review committee of a hospital or long-term care106
facility or a peer review committee of a nonprofit health care107
corporation that is a member of the hospital or long-term care108
facility or of which the hospital or facility is a member;109

       (b) A peer review committee of a community mental health110
center;111

       (c) A board or committee of a hospital, a long-term care112
facility, or other health care entity when reviewing professional113
qualifications or activities of health care providers, including114
both individuals who provide health care and entities that provide115
health care;116

       (d) A peer review committee, professional standards review117
committee, or arbitration committee of a state or local society118
composed of members who are in active practice as physicians,119
dentists, optometrists, psychologists, or pharmacists;120

       (e) A peer review committee of a health insuring corporation121
that has at least a two-thirds majority of member physicians in122
active practice and that conducts professional credentialing and123
quality review activities involving the competence or professional124
conduct of health care providers that adversely affects or could125
adversely affect the health or welfare of any patient;126

       (f) A peer review committee of a health insuring corporation127
that has at least a two-thirds majority of member physicians in128
active practice and that conducts professional credentialing and129
quality review activities involving the competence or professional130
conduct of a health care facility that has contracted with the131
health insuring corporation to provide health care services to132
enrollees, which conduct adversely affects, or could adversely133
affect, the health or welfare of any patient;134

       (g) A peer review committee of a sickness and accident135
insurer that has at least a two-thirds majority of physicians in136
active practice and that conducts professional credentialing and137
quality review activities involving the competence or professional138
conduct of health care providers that adversely affects or could139
adversely affect the health or welfare of any patient;140

       (h) A peer review committee of a sickness and accident141
insurer that has at least a two-thirds majority of physicians in142
active practice and that conducts professional credentialing and143
quality review activities involving the competence or professional144
conduct of a health care facility that has contracted with the145
insurer to provide health care services to insureds, which conduct146
adversely affects, or could adversely affect, the health or147
welfare of any patient;148

       (i) A peer review committee of any insurer authorized under149
Title XXXIX of the Revised Code to do the business of medical150
professional liability insurance in this state that conducts151
professional quality review activities involving the competence or152
professional conduct of health care providers that adversely153
affects or could affect the health or welfare of any patient;154

       (j) A peer review committee of the bureau of workers' 155
compensation responsible for reviewing the professional 156
qualifications and the performance of providers conducting medical 157
examinations or file reviews for the bureau;158

       (k) Any other peer review committee of a health care entity.159

       (F) "Physician" means an individual authorized to practice160
medicine and surgery, osteopathic medicine and surgery, or161
podiatric medicine and surgery.162

       (G) "Sickness and accident insurer" means an entity163
authorized under Title XXXIX of the Revised Code to do the164
business of sickness and accident insurance in this state.165

       (H) "Tort action" means a civil action for damages for166
injury, death, or loss to a patient of a health care entity. "Tort167
action" includes a product liability claim but does not include a168
civil action for a breach of contract or another agreement between169
persons.170

       Sec. 4121.021.  The industrial commission operating fund is 171
hereby created in the state treasury. The fund shall consist of 172
all moneys transferred to the fund pursuant to division (C) of 173
section 4123.342 of the Revised Code. Revenues credited to the 174
fund shall be used for those costs solely attributable to the 175
activities of the commission.176

       Sec. 4121.121.  (A) There is hereby created the bureau of177
workers' compensation, which shall be administered by the 178
administrator of workers' compensation. A person appointed to the 179
position of administrator shall possess significant management 180
experience in effectively managing an organization or 181
organizations of substantial size and complexity. The governor 182
shall appoint the administrator as provided in section 121.03 of 183
the Revised Code, and the administrator shall serve at the 184
pleasure of the governor. The governor shall fix the185
administrator's salary on the basis of the administrator's 186
experience and the administrator's responsibilities and duties 187
under this chapter and Chapters 4123., 4127., and 4131. of the 188
Revised Code. The governor shall not appoint to the position of189
administrator any person who has, or whose spouse has, given a 190
contribution to the campaign committee of the governor in an 191
amount greater than one thousand dollars during the two-year 192
period immediately preceding the date of the appointment of the 193
administrator. 194

       The administrator shall hold no other public office and shall 195
devote full time to the duties of administrator. Before entering 196
upon the duties of the office, the administrator shall take an 197
oath of office as required by sections 3.22 and 3.23 of the 198
Revised Code, and shall file in the office of the secretary of 199
state, a bond signed by the administrator and by surety approved 200
by the governor, for the sum of fifty thousand dollars payable to 201
the state, conditioned upon the faithful performance of the 202
administrator's duties.203

       (B) The administrator is responsible for the management of 204
the bureau of workers' compensation and for the discharge of all 205
administrative duties imposed upon the administrator in this 206
chapter and Chapters 4123., 4127., and 4131. of the Revised Code, 207
and in the discharge thereof shall do all of the following:208

       (1) Establish the overall administrative policy of the bureau 209
for the purposes of this chapter and Chapters 4123., 4127., and 210
4131. of the Revised Code, and perform all acts and exercise all211
authorities and powers, discretionary and otherwise that are 212
required of or vested in the bureau or any of its employees in 213
this chapter and Chapters 4123., 4127., and 4131. of the Revised 214
Code, except the acts and the exercise of authority and power that 215
is required of and vested in the oversight commission or the 216
industrial commission pursuant to those chapters. The treasurer of 217
state shall honor all warrants signed by the administrator, or by 218
one or more of the administrator's employees, authorized by the 219
administrator in writing, or bearing the facsimile signature of 220
the administrator or such employee under sections 4123.42 and 221
4123.44 of the Revised Code.222

       (2) Employ, direct, and supervise all employees required in 223
connection with the performance of the duties assigned to the224
bureau by this chapter and Chapters 4123., 4127., and 4131. of the 225
Revised Code, and may establish job classification plans and226
compensation for all employees of the bureau provided that this227
grant of authority shall not be construed as affecting any228
employee for whom the state employment relations board has229
established an appropriate bargaining unit under section 4117.06230
of the Revised Code. All positions of employment in the bureau are 231
in the classified civil service except those employees the232
administrator may appoint to serve at the administrator's pleasure 233
in the unclassified civil service pursuant to section 124.11 of 234
the Revised Code. The administrator shall fix the salaries of235
employees the administrator appoints to serve at the 236
administrator's pleasure, including the chief operating officer, 237
staff physicians, and other senior management personnel of the238
bureau and shall establish the compensation of staff attorneys of 239
the bureau's legal section and their immediate supervisors, and 240
take whatever steps are necessary to provide adequate compensation 241
for other staff attorneys.242

       The administrator may appoint a person holding a certified243
position in the classified service to any state position in the244
unclassified service of the bureau of workers' compensation. A245
person so appointed shall retain the right to resume the position 246
and status held by the person in the classified service247
immediately prior to the person's appointment in the unclassified 248
service. If the position the person previously held has been 249
filled or placed in the unclassified service, or is otherwise 250
unavailable, the person shall be appointed to a position in the 251
classified service within the bureau that the department of 252
administrative services certifies is comparable in compensation to 253
the position the person previously held. Reinstatement to a254
position in the classified service shall be to a position255
substantially equal to that held previously, as certified by the256
department of administrative services. Service in the position in 257
the unclassified service shall be counted as service in the 258
position in the classified service held by the person immediately 259
prior to the person's appointment in the unclassified service. 260
When a person is reinstated to a position in the classified261
service as provided in this section, the person is entitled to all 262
rights, status, and benefits accruing to the position during the 263
person's time of service in the position in the unclassified264
service.265

       (3) Reorganize the work of the bureau, its sections,266
departments, and offices to the extent necessary to achieve the267
most efficient performance of its functions and to that end may268
establish, change, or abolish positions and assign and reassign269
duties and responsibilities of every employee of the bureau. All270
persons employed by the commission in positions that, after271
November 3, 1989, are supervised and directed by the administrator 272
under this section are transferred to the bureau in their 273
respective classifications but subject to reassignment and274
reclassification of position and compensation as the administrator 275
determines to be in the interest of efficient administration. The 276
civil service status of any person employed by the commission is 277
not affected by this section. Personnel employed by the bureau or 278
the commission who are subject to Chapter 4117. of the Revised 279
Code shall retain all of their rights and benefits conferred 280
pursuant to that chapter as it presently exists or is hereafter 281
amended and nothing in this chapter or Chapter 4123. of the 282
Revised Code shall be construed as eliminating or interfering with 283
Chapter 4117. of the Revised Code or the rights and benefits 284
conferred under that chapter to public employees or to any 285
bargaining unit.286

       (4) Provide offices, equipment, supplies, and other287
facilities for the bureau. The administrator also shall provide 288
suitable office space in the service offices for the district 289
hearing officers, the staff hearing officers, and commission 290
employees as requested by the commission.291

       (5) Prepare and submit to the oversight commission 292
information the administrator considers pertinent or the oversight 293
commission requires, together with the administrator's 294
recommendations, in the form of administrative rules, for the 295
advice and consent of the oversight commission, for296
classifications of occupations or industries, for premium rates297
and contributions, for the amount to be credited to the surplus298
fund, for rules and systems of rating, rate revisions, and merit299
rating. The administrator shall obtain, prepare, and submit any300
other information the oversight commission requires for the prompt 301
and efficient discharge of its duties.302

       (6) Keep the accounts required by division (A) of section303
4123.34 of the Revised Code and all other accounts and records304
necessary to the collection, administration, and distribution of305
the workers' compensation funds and shall obtain the statistical306
and other information required by section 4123.19 of the Revised307
Code.308

       (7) Exercise the investment powers vested in the309
administrator by section 4123.44 of the Revised Code in accordance 310
with the investment objectives, policies, and criteria established 311
by the oversight commission pursuant to section 4121.12 of the 312
Revised Code. The administrator shall not engage in any prohibited 313
investment activity specified by the oversight commission pursuant314
to division (F)(6) of section 4121.12 of the Revised Code. All 315
business shall be transacted, all funds invested, all warrants for 316
money drawn and payments made, and all cash and securities and 317
other property held, in the name of the bureau, or in the name of 318
its nominee, provided that nominees are authorized by the 319
administrator solely for the purpose of facilitating the transfer 320
of securities, and restricted to the administrator and designated321
employees.322

       (8) Make contracts for and supervise the construction of any 323
project or improvement or the construction or repair of buildings 324
under the control of the bureau.325

       (9) Purchase supplies, materials, equipment, and services; 326
make contracts for, operate, and superintend the telephone, other 327
telecommunication, and computer services for the use of the 328
bureau; and make contracts in connection with office reproduction, 329
forms management, printing, and other services. Notwithstanding 330
sections 125.12 to 125.14 of the Revised Code, the administrator 331
may transfer surplus computers and computer equipment directly to 332
an accredited public school within the state. The computers and 333
computer equipment may be repaired or refurbished prior to the334
transfer.335

       (10) Separately from the budget the industrial commission 336
submits, prepare and submit to the director of budget and 337
management a budget for each biennium. The budget submitted shall 338
include estimates of the costs and necessary expenditures of the 339
bureau in the discharge of any duty imposed by law as well as the 340
costs of furnishing office space to the district hearing officers, 341
staff hearing officers, and commission employees under division 342
(D) of this section.343

       (11) As promptly as possible in the course of efficient344
administration, decentralize and relocate such of the personnel345
and activities of the bureau as is appropriate to the end that the 346
receipt, investigation, determination, and payment of claims may 347
be undertaken at or near the place of injury or the residence of 348
the claimant and for that purpose establish regional offices, in 349
such places as the administrator considers proper, capable of 350
discharging as many of the functions of the bureau as is 351
practicable so as to promote prompt and efficient administration 352
in the processing of claims. All active and inactive lost-time 353
claims files shall be held at the service office responsible for 354
the claim. A claimant, at the claimant's request, shall be 355
provided with information by telephone as to the location of the 356
file pertaining to claim. The administrator shall ensure that all 357
service office employees report directly to the director for their 358
service office.359

       (12) Provide a written binder on new coverage where the360
administrator considers it to be in the best interest of the risk. 361
The administrator, or any other person authorized by the362
administrator, shall grant the binder upon submission of a request 363
for coverage by the employer. A binder is effective for a period 364
of thirty days from date of issuance and is nonrenewable. Payroll 365
reports and premium charges shall coincide with the effective date 366
of the binder.367

       (13) Set standards for the reasonable and maximum handling368
time of claims payment functions, ensure, by rules, the impartial369
and prompt treatment of all claims and employer risk accounts, and 370
establish a secure, accurate method of time stamping all incoming 371
mail and documents hand delivered to bureau employees.372

       (14) Ensure that all employees of the bureau follow the373
orders and rules of the commission as such orders and rules relate 374
to the commission's overall adjudicatory policy-making and375
management duties under this chapter and Chapters 4123., 4127.,376
and 4131. of the Revised Code.377

       (15) Manage and operate a data processing system with a378
common data base for the use of both the bureau and the commission 379
and, in consultation with the commission, using electronic data 380
processing equipment, shall develop a claims tracking system that 381
is sufficient to monitor the status of a claim at any time and 382
that lists appeals that have been filed and orders or 383
determinations that have been issued pursuant to section 4123.511 384
or 4123.512 of the Revised Code, including the dates of such 385
filings and issuances.386

       (16) Establish and maintain a medical section within the387
bureau. The medical section shall do all of the following:388

       (a) Assist the administrator in establishing standard medical 389
fees, approving medical procedures, and determining eligibility 390
and reasonableness of the compensation payments for medical, 391
hospital, and nursing services, and in establishing guidelines for 392
payment policies which recognize usual, customary, and reasonable 393
methods of payment for covered services;394

       (b) Provide a resource to respond to questions from claims395
examiners for employees of the bureau;396

       (c) Audit fee bill payments;397

       (d) Implement a program to utilize, to the maximum extent398
possible, electronic data processing equipment for storage of399
information to facilitate authorizations of compensation payments400
for medical, hospital, drug, and nursing services;401

       (e) Perform other duties assigned to it by the administrator.402

       (17) Appoint, as the administrator determines necessary,403
panels to review and advise the administrator on disputes arising 404
over a determination that a health care service or supply provided 405
to a claimant is not covered under this chapter or Chapter 4123. 406
of the Revised Code or is medically unnecessary. If an individual407
health care provider is involved in the dispute, the panel shall408
consist of individuals licensed pursuant to the same section of409
the Revised Code as such health care provider.410

       (18) Pursuant to section 4123.65 of the Revised Code, approve 411
applications for the final settlement of claims for compensation 412
or benefits under this chapter and Chapters 4123., 4127., and 413
4131. of the Revised Code as the administrator determines 414
appropriate, except in regard to the applications of self-insuring 415
employers and their employees.416

       (19) Comply with section 3517.13 of the Revised Code, and417
except in regard to contracts entered into pursuant to the 418
authority contained in section 4121.44 of the Revised Code, comply 419
with the competitive bidding procedures set forth in the Revised 420
Code for all contracts into which the administrator enters 421
provided that those contracts fall within the type of contracts 422
and dollar amounts specified in the Revised Code for competitive 423
bidding and further provided that those contracts are not424
otherwise specifically exempt from the competitive bidding 425
procedures contained in the Revised Code.426

       (20) Adopt, with the advice and consent of the oversight427
commission, rules for the operation of the bureau.428

       (21) Prepare and submit to the oversight commission 429
information the administrator considers pertinent or the oversight 430
commission requires, together with the administrator's 431
recommendations, in the form of administrative rules, for the 432
advice and consent of the oversight commission, for the health 433
partnership program and the qualified health plan system, as434
provided in sections 4121.44, 4121.441, and 4121.442 of the 435
Revised Code.436

       (C) The administrator, with the advice and consent of the 437
senate, shall appoint a chief operating officer who has 438
significant experience in the field of workers' compensation 439
insurance or other similar insurance industry experience if the440
administrator does not possess such experience. The chief 441
operating officer shall not commence the chief operating officer's 442
duties until after the senate consents to the chief operating 443
officer's appointment. The chief operating officer shall serve in 444
the unclassified civil service of the state.445

       Sec. 4121.44.  (A) The administrator of workers' compensation 446
shall oversee the implementation of the Ohio workers' compensation 447
qualified health plan system as established under section 4121.442 448
of the Revised Code.449

       (B) The administrator shall direct the implementation of the450
health partnership program administered by the bureau as set forth451
in section 4121.441 of the Revised Code. To implement the health452
partnership program, the bureau:453

       (1) Shall certify one or more external vendors, which shall454
be known as "managed care organizations," to provide medical455
management and cost containment services in the health partnership456
program for a period of two years beginning on the date of457
certification, consistent with the standards established under458
this section;459

       (2) May recertify external vendors for additional periods of460
two years; and461

       (3) May integrate the certified vendors with bureau staff and 462
existing bureau services for purposes of operation and training to 463
allow the bureau to assume operation of the health partnership 464
program at the conclusion of the certification periods set forth 465
in division (B)(1) or (2) of this section.466

       (C) Any vendor selected shall demonstrate all of the467
following:468

       (1) Arrangements and reimbursement agreements with a469
substantial number of the medical, professional and pharmacy470
providers currently being utilized by claimants.471

       (2) Ability to accept a common format of medical bill data in 472
an electronic fashion from any provider who wishes to submit473
medical bill data in that form.474

       (3) A computer system able to handle the volume of medical475
bills and willingness to customize that system to the bureau's476
needs and to be operated by the vendor's staff, bureau staff, or477
some combination of both staffs.478

       (4) A prescription drug system where pharmacies on a479
statewide basis have access to the eligibility and pricing, at a480
discounted rate, of all prescription drugs.481

       (5) A tracking system to record all telephone calls from482
claimants and providers regarding the status of submitted medical483
bills so as to be able to track each inquiry.484

       (6) Data processing capacity to absorb all of the bureau's485
medical bill processing or at least that part of the processing486
which the bureau arranges to delegate.487

       (7) Capacity to store, retrieve, array, simulate, and model488
in a relational mode all of the detailed medical bill data so that489
analysis can be performed in a variety of ways and so that the490
bureau and its governing authority can make informed decisions.491

       (8) Wide variety of software programs which translate medical 492
terminology into standard codes, and which reveal if a provider is 493
manipulating the procedures codes, commonly called "unbundling."494

       (9) Necessary professional staff to conduct, at a minimum,495
authorizations for treatment, medical necessity, utilization496
review, concurrent review, post-utilization review, and have the497
attendant computer system which supports such activity and498
measures the outcomes and the savings.499

       (10) Management experience and flexibility to be able to500
react quickly to the needs of the bureau in the case of required501
change in federal or state requirements.502

       (D)(1) Information contained in a vendor's application for503
certification in the health partnership program, and other504
information furnished to the bureau by a vendor for purposes of505
obtaining certification or to comply with performance and506
financial auditing requirements established by the adminstrator507
administrator, is for the exclusive use and information of the 508
bureau in the discharge of its official duties, and shall not be 509
open to the public or be used in any court in any proceeding 510
pending therein, unless the bureau is a party to the action or 511
proceeding, but the information may be tabulated and published by 512
the bureau in statistical form for the use and information of 513
other state departments and the public. No employee of the bureau, 514
except as otherwise authorized by the administrator, shall divulge 515
any information secured by the employee while in the employ of the516
bureau in respect to a vendor's application for certification or517
in respect to the business or other trade processes of any vendor518
to any person other than the administrator or to the employee's519
superior.520

       (2) Notwithstanding the restrictions imposed by division521
(D)(1) of this section, the governor, members of select or522
standing committees of the senate or house of representatives, the523
auditor of state, the attorney general, or their designees,524
pursuant to the authority granted in this chapter and Chapter525
4123. of the Revised Code, may examine any vendor application or526
other information furnished to the bureau by the vendor. None of527
those individuals shall divulge any information secured in the528
exercise of that authority in respect to a vendor's application529
for certification or in respect to the business or other trade530
processes of any vendor to any person.531

       (E) On and after January 1, 2001, a vendor shall not be any532
insurance company holding a certificate of authority issued533
pursuant to Title XXXIX of the Revised Code or any health insuring534
corporation holding a certificate of authority under Chapter 1751.535
of the Revised Code.536

       (F) The administrator may limit freedom of choice of health537
care provider or supplier by requiring, beginning with the period538
set forth in division (B)(1) or (2) of this section, that539
claimants shall pay an appropriate out-of-plan copayment for540
selecting a medical provider not within the health partnership541
program as provided for in this section.542

       (G) The administrator, six months prior to the expiration of543
the bureau's certification or recertification of the vendor or544
vendors as set forth in division (B)(1) or (2) of this section,545
may certify and provide evidence to the governor, the speaker of546
the house of representatives, and the president of the senate that547
the existing bureau staff is able to match or exceed the548
performance and outcomes of the external vendor or vendors and549
that the bureau should be permitted to internally administer the550
health partnership program upon the expiration of the551
certification or recertification as set forth in division (B)(1)552
or (2) of this section.553

       (H) The administrator shall establish and operate a bureau of 554
workers' compensation health care data program. The administrator 555
shall develop reporting requirements from all employees, employers 556
and medical providers, medical vendors, and plans that participate 557
in the workers' compensation system. The administrator shall do 558
all of the following:559

       (1) Utilize the collected data to measure and perform560
comparison analyses of costs, quality, appropriateness of medical561
care, and effectiveness of medical care delivered by all562
components of the workers' compensation system.563

       (2) Compile data to support activities of the selected vendor 564
or vendors and to measure the outcomes and savings of the health 565
partnership program.566

       (3) Publish and report compiled data to the governor, the567
speaker of the house of representatives, and the president of the568
senate on the first day of each January and July, the measures of569
outcomes and savings of the health partnership program and the570
qualified health plan system. The administrator shall protect the571
confidentiality of all proprietary pricing data.572

       (I) Any rehabilitation facility the bureau operates is573
eligible for inclusion in the Ohio workers' compensation qualified574
health plan system or the health partnership program under the575
same terms as other providers within health care plans or the576
program.577

       (J) In areas outside the state or within the state where no578
qualified health plan or an inadequate number of providers within579
the health partnership program exist, the administrator shall580
permit employees to use a nonplan or nonprogram health care581
provider and shall pay the provider for the services or supplies582
provided to or on behalf of an employee for an injury or583
occupational disease that is compensable under this chapter or584
Chapter 4123., 4127., or 4131. of the Revised Code on a fee585
schedule the administrator adopts.586

       (K) No certified health care provider, whether certified or 587
not, shall charge, assess, or otherwise attempt to collect from an 588
employee, employer, a managed care organization, or the bureau any 589
amount for covered services or supplies that is in excess of the 590
allowed amount paid by a managed care organization, the bureau, or 591
a qualified health plan.592

       (L) The administrator shall permit any employer or group of593
employers who agree to abide by the rules adopted under this594
section and sections 4121.441 and 4121.442 of the Revised Code to595
provide services or supplies to or on behalf of an employee for an596
injury or occupational disease that is compensable under this597
chapter or Chapter 4123., 4127., or 4131. of the Revised Code598
through qualified health plans of the Ohio workers' compensation599
qualified health plan system pursuant to section 4121.442 of the600
Revised Code or through the health partnership program pursuant to601
section 4121.441 of the Revised Code. No amount paid under the602
qualified health plan system pursuant to section 4121.442 of the603
Revised Code by an employer who is a state fund employer shall be604
charged to the employer's experience or otherwise be used in605
merit-rating or determining the risk of that employer for the606
purpose of the payment of premiums under this chapter, and if the607
employer is a self-insuring employer, the employer shall not608
include that amount in the paid compensation the employer reports609
under section 4123.35 of the Revised Code.610

       Sec. 4123.01.  As used in this chapter:611

       (A)(1) "Employee" means:612

       (a) Every person in the service of the state, or of any613
county, municipal corporation, township, or school district614
therein, including regular members of lawfully constituted police615
and fire departments of municipal corporations and townships,616
whether paid or volunteer, and wherever serving within the state617
or on temporary assignment outside thereof, and executive officers618
of boards of education, under any appointment or contract of hire,619
express or implied, oral or written, including any elected620
official of the state, or of any county, municipal corporation, or621
township, or members of boards of education.622

       As used in division (A)(1)(a) of this section, the term 623
"employee" includes the following persons when responding to an 624
inherently dangerous situation that calls for an immediate 625
response on the part of the person, regardless of whether the 626
person is within the limits of the jurisdiction of the person's 627
regular employment or voluntary service when responding, on the 628
condition that the person responds to the situation as the person 629
otherwise would if the person were on duty in the person's630
jurisdiction:631

       (i) Off-duty peace officers. As used in division (A)(1)(a)(i) 632
of this section, "peace officer" has the same meaning as in633
section 2935.01 of the Revised Code.634

       (ii) Off-duty firefighters, whether paid or volunteer, of a635
lawfully constituted fire department.636

       (iii) Off-duty first responders, emergency medical637
technicians-basic, emergency medical technicians-intermediate, or638
emergency medical technicians-paramedic, whether paid or639
volunteer, of an ambulance service organization or emergency640
medical service organization pursuant to Chapter 4765. of the641
Revised Code.642

       (b) Every person in the service of any person, firm, or643
private corporation, including any public service corporation,644
that (i) employs one or more persons regularly in the same645
business or in or about the same establishment under any contract646
of hire, express or implied, oral or written, including aliens and647
minors, household workers who earn one hundred sixty dollars or648
more in cash in any calendar quarter from a single household and649
casual workers who earn one hundred sixty dollars or more in cash650
in any calendar quarter from a single employer, or (ii) is bound651
by any such contract of hire or by any other written contract, to652
pay into the state insurance fund the premiums provided by this653
chapter.654

       (c) Every person who performs labor or provides services655
pursuant to a construction contract, as defined in section 4123.79656
of the Revised Code, if at least ten of the following criteria657
apply:658

       (i) The person is required to comply with instructions from659
the other contracting party regarding the manner or method of660
performing services;661

       (ii) The person is required by the other contracting party to 662
have particular training;663

       (iii) The person's services are integrated into the regular664
functioning of the other contracting party;665

       (iv) The person is required to perform the work personally;666

       (v) The person is hired, supervised, or paid by the other667
contracting party;668

       (vi) A continuing relationship exists between the person and669
the other contracting party that contemplates continuing or670
recurring work even if the work is not full time;671

       (vii) The person's hours of work are established by the other 672
contracting party;673

       (viii) The person is required to devote full time to the674
business of the other contracting party;675

       (ix) The person is required to perform the work on the676
premises of the other contracting party;677

       (x) The person is required to follow the order of work set by 678
the other contracting party;679

       (xi) The person is required to make oral or written reports680
of progress to the other contracting party;681

       (xii) The person is paid for services on a regular basis such 682
as hourly, weekly, or monthly;683

       (xiii) The person's expenses are paid for by the other684
contracting party;685

       (xiv) The person's tools and materials are furnished by the686
other contracting party;687

       (xv) The person is provided with the facilities used to688
perform services;689

       (xvi) The person does not realize a profit or suffer a loss690
as a result of the services provided;691

       (xvii) The person is not performing services for a number of692
employers at the same time;693

       (xviii) The person does not make the same services available694
to the general public;695

       (xix) The other contracting party has a right to discharge696
the person;697

       (xx) The person has the right to end the relationship with698
the other contracting party without incurring liability pursuant699
to an employment contract or agreement.700

       Every person in the service of any independent contractor or701
subcontractor who has failed to pay into the state insurance fund702
the amount of premium determined and fixed by the administrator of703
workers' compensation for the person's employment or occupation or704
if a self-insuring employer has failed to pay compensation and705
benefits directly to the employer's injured and to the dependents706
of the employer's killed employees as required by section 4123.35707
of the Revised Code, shall be considered as the employee of the708
person who has entered into a contract, whether written or verbal,709
with such independent contractor unless such employees or their710
legal representatives or beneficiaries elect, after injury or711
death, to regard such independent contractor as the employer.712

       (2) "Employee" does not mean:713

       (a) A duly ordained, commissioned, or licensed minister or714
assistant or associate minister of a church in the exercise of715
ministry; or716

       (b) Any officer of a family farm corporation; or717

       (c) An individual who otherwise is an employee of an employer 718
but who signs the waiver and affidavit specified in section 719
4123.15 of the Revised Code on the condition that the 720
administrator has granted a waiver and exception to the 721
individual's employer under section 4123.15 of the Revised Code.722

       Any employer may elect to include as an "employee" within723
this chapter, any person excluded from the definition of724
"employee" pursuant to division (A)(2) of this section. If an725
employer is a partnership, sole proprietorship, or family farm726
corporation, such employer may elect to include as an "employee"727
within this chapter, any member of such partnership, the owner of728
the sole proprietorship, or the officers of the family farm729
corporation. In the event of an election, the employer shall serve 730
upon the bureau of workers' compensation written notice naming the 731
persons to be covered, include such employee's remuneration for 732
premium purposes in all future payroll reports, and no person 733
excluded from the definition of "employee" pursuant to division 734
(A)(2) of this section, proprietor, or partner shall be deemed an 735
employee within this division until the employer has served such 736
notice.737

       For informational purposes only, the bureau shall prescribe738
such language as it considers appropriate, on such of its forms as739
it considers appropriate, to advise employers of their right to740
elect to include as an "employee" within this chapter a sole741
proprietor, any member of a partnership, the officers of a family742
farm corporation, or a person excluded from the definition of743
"employee" under division (A)(2)(a) of this section, that they744
should check any health and disability insurance policy, or other745
form of health and disability plan or contract, presently covering746
them, or the purchase of which they may be considering, to747
determine whether such policy, plan, or contract excludes benefits748
for illness or injury that they might have elected to have covered749
by workers' compensation.750

       (B) "Employer" means:751

       (1) The state, including state hospitals, each county,752
municipal corporation, township, school district, and hospital753
owned by a political subdivision or subdivisions other than the754
state;755

       (2) Every person, firm, and private corporation, including756
any public service corporation, that (a) has in service one or757
more employees regularly in the same business or in or about the758
same establishment under any contract of hire, express or implied,759
oral or written, or (b) is bound by any such contract of hire or760
by any other written contract, to pay into the insurance fund the761
premiums provided by this chapter.762

       All such employers are subject to this chapter. Any member of 763
a firm or association, who regularly performs manual labor in or 764
about a mine, factory, or other establishment, including a765
household establishment, shall be considered an employee in766
determining whether such person, firm, or private corporation, or767
public service corporation, has in its service, one or more768
employees and the employer shall report the income derived from769
such labor to the bureau as part of the payroll of such employer,770
and such member shall thereupon be entitled to all the benefits of771
an employee.772

       (C) "Injury" includes any injury, whether caused by external773
accidental means or accidental in character and result, received774
in the course of, and arising out of, the injured employee's775
employment. "Injury" does not include:776

       (1) Psychiatric conditions except where the conditions have777
arisen from an injury or occupational disease;778

       (2) Injury or disability caused primarily by the natural779
deterioration of tissue, an organ, or part of the body;780

       (3) Injury or disability incurred in voluntary participation781
in an employer-sponsored recreation or fitness activity if the782
employee signs a waiver of the employee's right to compensation or783
benefits under this chapter prior to engaging in the recreation or784
fitness activity.785

       (D) "Child" includes a posthumous child and a child legally786
adopted prior to the injury.787

       (E) "Family farm corporation" means a corporation founded for 788
the purpose of farming agricultural land in which the majority of 789
the voting stock is held by and the majority of the stockholders 790
are persons or the spouse of persons related to each other within 791
the fourth degree of kinship, according to the rules of the civil 792
law, and at least one of the related persons is residing on or 793
actively operating the farm, and none of whose stockholders are a 794
corporation. A family farm corporation does not cease to qualify 795
under this division where, by reason of any devise, bequest, or 796
the operation of the laws of descent or distribution, the 797
ownership of shares of voting stock is transferred to another 798
person, as long as that person is within the degree of kinship 799
stipulated in this division.800

       (F) "Occupational disease" means a disease contracted in the801
course of employment, which by its causes and the characteristics802
of its manifestation or the condition of the employment results in803
a hazard which distinguishes the employment in character from804
employment generally, and the employment creates a risk of805
contracting the disease in greater degree and in a different806
manner from the public in general.807

       (G) "Self-insuring employer" means an employer who is granted 808
the privilege of paying compensation and benefits directly under 809
section 4123.35 of the Revised Code, including a board of county 810
commissioners for the sole purpose of constructing a sports811
facility as defined in section 307.696 of the Revised Code,812
provided that the electors of the county in which the sports813
facility is to be built have approved construction of a sports814
facility by ballot election no later than November 6, 1997.815

       (H) "Public employer" means an employer as defined in816
division (B)(1) of this section.817

       Sec. 4123.15. (A) An employer who is a member of a recognized 818
religious sect or division of a recognized religious sect and who 819
is an adherent of established tenets or teachings of that sect or 820
division by reason of which the employer is conscientiously 821
opposed to benefits to employers and employees from any public or 822
private insurance that makes payment in the event of death, 823
disability, impairment, old age, or retirement or makes payments 824
toward the cost of, or provides services in connection with the 825
payment for, medical services, including the benefits from any 826
insurance system established by the "Social Security Act," 42 827
U.S.C.A. 30l, et seq., may apply to the administrator of workers' 828
compensation to be excepted from payment of premiums and other 829
charges assessed under this chapter and Chapter 4121. of the 830
Revised Code with respect to, or if the employer is a 831
self-insuring employer, from payment of direct compensation and 832
benefits to and assessments required by this chapter and Chapter 833
4121. of the Revised Code on account of, an individual employee 834
who meets the requirements of this section. The employer shall 835
make an application on forms provided by the bureau of workers' 836
compensation which forms may be those used by or similar to those 837
used by the United States internal revenue service for the purpose 838
of granting an exemption from payment of social security taxes 839
under 26 U.S.C.A. 1402(g) of the Internal Revenue Code, and shall 840
include a written waiver signed by the individual employee to be 841
excepted from all the benefits and compensation provided in this 842
chapter and Chapter 4121. of the Revised Code.843

       The application also shall include affidavits signed by the 844
employer and the individual employee that the employer and the 845
individual employee are members of a recognized religious sect or 846
division of a recognized religious sect and are adherents of 847
established tenets or teaching of that sect or division by reason 848
of which the employer and the individual employee are 849
conscientiously opposed to benefits to employers and employees 850
received from any public or private insurance that makes payments 851
in the event of death, disability, impairment, old age, or 852
retirement or makes payments toward the cost of, or provides 853
services in connection with the payment for, medical services, 854
including the benefits from any insurance system established by 855
the "Social Security Act," 42 U.S.C.A. 301, et seq. If the 856
individual is a minor, the guardian of the minor shall complete 857
the waiver and affidavit required by this division.858

       (B) The administrator shall grant the waiver and exception to 859
the employer for a particular individual employee if the 860
administrator finds that the employer and the individual employee 861
are members of a sect or division having the established tenets or 862
teachings described in division (A) of this section, that it is 863
the practice, and has been for a substantial number of years, for 864
members of the sect or division of the sect to make provision for 865
their dependent members which, in the administrator's judgment, is 866
reasonable in view of their general level of hiring, and that the 867
sect or division of the sect has been in existence at all times 868
since December 31, 1950.869

       (C) A waiver and exception under division (B) of this section 870
is effective on the date the administrator grants the waiver and 871
exception. An employer who complies with this chapter and the 872
employer's other employees, with respect to an individual employee 873
for whom the administrator grants the waiver and exception, are 874
entitled, as to that individual employee and as to all injuries 875
and occupational diseases of the individual employee that occurred 876
prior to the effective date of the waiver and exception, to the 877
protections of sections 4123.74 and 4123.741 of the Revised Code. 878
On and after the effective date of the waiver and exception, the 879
employer is not liable for the payment of any premiums or other 880
charges assessed under this chapter or Chapter 4121. of the 881
Revised Code, or if the individual is a self-insuring employer, 882
the employer is not liable for the payment of any compensation or 883
benefits directly or other charges assessed under this chapter or 884
Chapter 4121. of the Revised Code in regard to that individual 885
employee, and is considered a complying employer under those 886
chapters, and the employer and the employer's other employees are 887
entitled to the protections of sections 4123.74 and 4123.741 of 888
the Revised Code, as to that individual employee, and as to 889
injuries and occupational diseases of that individual employee 890
that occur on and after the effective date of the waiver and 891
exception.892

       (D) A waiver and exception granted in regard to a specific 893
employer and individual employee are valid for all future years 894
unless the administrator determines that the employer, individual 895
employee, or sect or division ceases to meet the requirements of 896
this section. If the administrator makes this determination, the 897
employer is liable for the payment of premiums and other charges 898
assessed under this chapter and Chapter 4121. of the Revised Code, 899
or if the employer is a self-insuring employer, the employer is 900
liable for the payment of compensation and benefits directly and 901
other charges assessed under those chapters, in regard to the 902
individual employee for all injuries and occupational diseases of 903
that individual that occur on and after the date of the 904
administrator's determination, and the individual employee is 905
entitled to all of the benefits and compensation provided in those 906
chapters for an injury or occupational disease that occurs on or 907
after the date of the administrator's determination.908

       Sec. 4123.31.  The moneys in the state treasury for the use 909
of the bureau of workers' compensation and the industrial 910
commission shall be known as the workers' compensation fund and911
group. The moneys from each fund shall be disbursed respectively912
pursuant to vouchers approved by the administrator of workers' 913
compensation or the administrator's designee, or by the 914
chairperson of the commission or the chairperson's designee.915

       The bureau and the commission shall provide for the custody, 916
safekeeping, and deposit of all moneys, checks, and drafts 917
received by itthe bureau or commission or any of its employees or 918
agents prior to paying the moneys, checks, and drafts to the919
treasurer of state as provided by section 113.08 of the Revised 920
Code.921

       Sec. 4123.342.  (A) The administrator of workers'922
compensation shall allocate among counties and taxing districts923
therein as a class, the state and its instrumentalities as a924
class, private employers who are insured under the private fund as 925
a class, and self-insuring employers as a class their fair shares 926
of the administrative costs which are to be borne by such927
employers under division (D) of section 4123.341 of the Revised928
Code, separately allocating to each class those costs solely 929
attributable to the activities of the industrial commission, and 930
those costs solely attributable to the activities of the workers'931
compensation oversight commission, and the bureau of workers' 932
compensation in respect of the class, allocating to any 933
combination of classes those costs attributable to the activities 934
of the industrial commission, oversight commission, or bureau in 935
respect of the classes, and allocating to all four classes those 936
costs attributable to the activities of the industrial commission, 937
oversight commission, and bureau in respect of all classes. The938
administrator shall separately calculate each employer's 939
assessment in the class, except self-insuring employers, on the 940
basis of the following three factors: payroll, paid compensation, 941
and paid medical costs of the employer for those costs solely 942
attributable to the activities of the oversight commission and the 943
bureau. The administrator shall separately calculate each 944
employer's assessment in the class, except self-insuring 945
employers, on the basis of the following three factors: payroll, 946
paid compensation, and paid medical costs of the employer for 947
those costs solely attributable to the activities of the 948
industrial commission. The administrator shall separately 949
calculate each self-insuring employer's assessment in accordance 950
with section 4123.35 of the Revised Code for those costs solely 951
attributable to the activities of the oversight commission and the 952
bureau. The administrator shall separately calculate each 953
self-insuring employer's assessment in accordance with section 954
4123.35 of the Revised Code for those costs solely attributable to 955
the activities of the industrial commission. In a timely manner, 956
the industrial commission shall provide to the administrator, the 957
information necessary for the administrator to allocate and 958
calculate, with the approval of the chairperson of the industrial 959
commission, for each class of employer as described in this 960
division, the costs solely attributable to the activities of the 961
industrial commission.962

       (B) The administrator shall divide the administrative cost 963
assessments collected by the administrator into two administrative 964
assessment accounts within the state insurance fund. One of the 965
administrative assessment accounts shall consist of the 966
administrative cost assessment collected by the administrator for 967
the industrial commission. The other administrative assessment 968
account shall consist of the administrative cost assessments 969
collected by the administrator for the bureau and the workers' 970
compensation oversight commission. The administrator may invest 971
the administrative cost assessments in these accounts on behalf of 972
the bureau and the industrial commission as authorized in section 973
4123.44 of the Revised Code. In a timely manner, the administrator 974
shall provide to the industrial commission the information and 975
reports the commission deems necessary for the commission to 976
monitor the receipts and the disbursements from the administrative 977
assessment account for the industrial commission.978

       (C) The administrator or the administrator's designee shall 979
transfer moneys as necessary from the administrative assessment 980
account identified for the bureau and the workers' compensation 981
oversight commission to the workers' compensation fund for the use 982
of the bureau and the oversight commission. As necessary and upon 983
the authorization of the industrial commission, the administrator 984
or the administrator's designee shall transfer moneys from the 985
administrative assessment account identified for the industrial 986
commission to the industrial commission operating fund created 987
under section 4121.021 of the Revised Code. To the extent that the 988
moneys collected by the administrator in any fiscal biennium of 989
the state equal the sum appropriated by the general assembly for 990
administrative costs of the industrial commission, oversight 991
commission, and bureau for the biennium, the moneys shall be paid 992
into the workers' compensation fund and the industrial commission 993
operating fund of the state and any remainder shall be retained in 994
the state insurance fund and applied to reduce the amount 995
collected during the next biennium. Sections 4123.41, 4123.35, and 996
4123.37 of the Revised Code apply to the collection of assessments 997
from public and private employers respectively, except that for 998
boards of county hospital trustees that are self-insuring 999
employers, only those provisions applicable to the collection of 1000
assessments for private employers apply.1001

       Sec. 4123.80.  No agreement by an employee to waive hisan1002
employee's rights to compensation under this chapter is valid, 1003
except that:1004

       (A) An employee who is blind may waive the compensation that 1005
may become due himto the employee for injury or disability in 1006
cases where the injury or disability may be directly caused by or 1007
due to histhe employee's blindness. The administrator of workers' 1008
compensation, with the advice and consent of the workers' 1009
compensation oversight commission, may adopt and enforce rules 1010
governing the employment of such persons and the inspection of 1011
their places of employment.1012

       (B) An employee may waive histhe employee's rights to1013
compensation or benefits as authorized pursuant to division (C)(3) 1014
of section 4123.01 or section 4123.15 of the Revised Code.1015

       No agreement by an employee to pay any portion of the premium1016
paid by histhe employee's employer into the state insurance fund 1017
is valid.1018

       Section 2. That existing sections 2305.24, 2305.25, 4121.121, 1019
4121.44, 4123.01, 4123.31, 4123.342, and 4123.80 of the Revised 1020
Code are hereby repealed.1021

       Section 3.  All items in this section are hereby appropriated1022
out of any moneys in the state treasury to the credit of the1023
designated fund. For all appropriations made in this act, those in 1024
the first column are for fiscal year 2004, and those in the second 1025
column are for fiscal year 2005.1026

FND AI AI TITLE Appropriations 1027

BWC BUREAU OF WORKERS' COMPENSATION
1028

Workers' Compensation Fund Group1029

023 855-401 William Green Lease Payments to OBA $ 18,734,613 $ 19,239,613 1030
023 855-407 Claims, Risk & Medical Management $ 140,052,037 $ 140,052,037 1031
023 855-408 Fraud Prevention $ 11,713,797 $ 11,713,797 1032
023 855-409 Administrative Services $ 119,246,553 $ 119,246,553 1033
023 855-410 Attorney General Payments $ 4,314,644 $ 4,314,644 1034
822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 1035
823 855-608 Marine Industry $ 53,952 $ 53,952 1036
825 855-605 Disabled Workers Relief Fund $ 693,764 $ 693,764 1037
826 855-609 Safety & Hygiene Operating $ 20,130,820 $ 20,130,820 1038
826 855-610 Safety Grants Program $ 2,000,000 $ 2,000,000 1039
TOTAL WCF Workers' Compensation 1040
Fund Group $ 317,032,074 $ 317,537,074 1041
TOTAL ALL BUDGET FUND GROUPS $ 317,032,074 $ 317,537,074 1042

       WILLIAM GREEN LEASE PAYMENTS1043

       The foregoing appropriation item 855-401, William Green Lease1044
Payments to OBA, shall be used for lease payments to the Ohio1045
Building Authority, and these appropriations shall be used to meet1046
all payments at the times they are required to be made during the1047
period from July 1, 2004, to June 30, 2005, by the Bureau of1048
Workers' Compensation to the Ohio Building Authority pursuant to1049
leases and agreements made under Chapter 152. of the Revised Code1050
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly.1051
Of the amounts received in Fund 023, appropriation item 855-401,1052
up to $37,974,226 shall be restricted for lease rental payments to1053
the Ohio Building Authority. If it is determined that additional1054
appropriations are necessary for such purpose, such amounts are1055
hereby appropriated.1056

       Notwithstanding any other provision of law to the contrary,1057
all tenants of the William Green Building not funded by the1058
Workers' Compensation Fund (Fund 023) shall pay their fair share1059
of the costs of lease payments to the Workers' Compensation Fund1060
(Fund 023) by intrastate transfer voucher.1061

       WORKERS' COMPENSATION FRAUD UNIT1062

       The Workers' Compensation Section Fund (Fund 195) shall1063
receive payments from the Bureau of Workers' Compensation at the1064
beginning of each quarter of each fiscal year to fund expenses of1065
the Workers' Compensation Fraud Unit of the Attorney General's1066
Office. Of the foregoing appropriation item 855-410, Attorney1067
General Payments, $773,151 in fiscal year 2004 and $773,151 in1068
fiscal year 2005 shall be used to provide these payments.1069

       SAFETY AND HYGIENE1070

       Notwithstanding section 4121.37 of the Revised Code, the1071
Administrator of Workers' Compensation shall transfer moneys from1072
the State Insurance Fund so that appropriation item 855-609,1073
Safety and Hygiene Operating, is provided $20,130,820 in fiscal1074
year 2004 and $20,130,820 in fiscal year 2005.1075

       BALANCES1076

       Notwithstanding any provision of law to the contrary, the1077
Director of Budget and Management shall make any transfers of cash1078
balances between funds made necessary by the creation of new funds1079
or the consolidation of funds as authorized by the General1080
Assembly. Within the first five days after the effective date of1081
this section, the head of the Industrial Commission shall certify 1082
to the Director of Budget and Management the amount of the cash 1083
balance to be transferred to the Industrial Commission Operating 1084
Fund (Fund 5W3). The Director of Budget and Management may 1085
transfer the amount. Within thirty days after the effective date 1086
of this section, the head of the Industrial Commission shall 1087
certify the final transfer amount to the Director of Budget and 1088
Management. The Director shall transfer the cash from the Workers' 1089
Compensation Fund (Fund 023) to the Industrial Commission 1090
Operating Fund (Fund 5W3).1091

       To implement funding changes as described above pertaining to1092
prior year encumbrance balances and commensurate appropriation1093
authority, in fiscal year 2004 the Director of Budget and1094
Management may cancel encumbrances outstanding on June 30, 2003,1095
and reestablish such prior year encumbrances or parts of1096
encumbrances as needed in fiscal year 2004 in the appropriate fund1097
or appropriation item as authorized in this act for the same1098
purpose and to the same vendor. As determined by the director, the 1099
appropriation authority necessary to reestablish such prior year 1100
encumbrances in fiscal year 2004 in a different fund or1101
appropriation item within an agency or between agencies is1102
authorized. The director shall reduce each prior year's1103
appropriation authority by the amount of the encumbrances canceled1104
in their respective funds and appropriation items.1105

       VOCATIONAL REHABILITATION1106

       The Bureau of Workers' Compensation and the Rehabilitation1107
Services Commission shall enter into an interagency agreement for1108
the provision of vocational rehabilitation services and staff to1109
mutually eligible clients. The bureau shall provide $587,774 in1110
fiscal year 2004 and $605,407 in fiscal year 2005 from the State1111
Insurance Fund to fund vocational rehabilitation services and1112
staff in accordance with the interagency agreement.1113

       FUND BALANCE1114

       Any unencumbered cash balance in excess of $45,000,000 in the1115
Workers' Compensation Fund (Fund 023) on the thirtieth day of June1116
of each fiscal year shall be used to reduce the administrative1117
cost rate charged to employers to cover appropriations for Bureau1118
of Workers' Compensation operations.1119

       Section 4. On July 1, 2003, or as soon thereafter as 1120
possible, the Director of Budget and Management shall transfer an 1121
amount equal to the amount of existing encumbrances in Fund 023 1122
appropriation items 845-321, Operating Expenses; 845-402, Rent - 1123
William Green Building; and 845-410, Attorney General Payments, 1124
from Fund 023 to Fund 5W3 under the Ohio Industrial Commission.1125

       On July 1, 2003, or as soon thereafter as possible, the 1126
Director of Budget and Management shall transfer the amount 1127
certified by the Ohio Industrial Commission from Fund 023 to Fund 1128
5W3. Any existing encumbrances in appropriation items 845-321, 1129
Operating Expenses; 845-402, Rent - William Green Building; and 1130
845-410, Attorney General Payments, under Fund 023 shall be 1131
canceled and re-established against appropriation items 845-321, 1132
Operating Expenses; 845-402, Rent - William Green Building; and 1133
845-410, Attorney General Payments, under Fund 5W3, respectively. 1134
The amounts of the re-established encumbrances are hereby 1135
appropriated.1136

       Section 5. The Director of the Legislative Service Commission 1137
shall renumber the Bureau of Workers' Compensation safety and 1138
hygiene rules currently bearing Administrative Code division-level 1139
designation 4121:1 so that the rules bear instead division-level 1140
designation 4123:1. Thereafter, division-level designation 4123:1 1141
constitutes an official part of the official Administrative Code 1142
rule numbers of the Bureau of Workers' Compensation safety and 1143
hygiene rules, and a reference in a statute, rule, contract, or 1144
other document to a safety and hygiene rule bearing Administrative 1145
Code division-level designation 4121:1 is deemed to refer to the 1146
same rule as officially renumbered pursuant to this section.1147

       Section 6. Law contained in the main operating appropriations 1148
act of the 125th General Assembly that applies generally to the 1149
appropriations made in that act also applies generally to the 1150
appropriations made in this act.1151

       Section 7. Sections 2305.24, 2305.25, 4121.121, 4121.44, 1152
4123.01, 4123.31, 4123.342, and 4123.80 of the Revised Code as 1153
amended by this act and sections 4121.021 and 4123.15 of the 1154
Revised Code as enacted by this act are subject to the referendum. 1155
Therefore, under Ohio Constitution, Article II, Section 1c and 1156
section 1.471 of the Revised Code, the sections as amended or 1157
enacted take effect on the ninety-first day after this act is 1158
filed with the Secretary of State. If, however, a referendum 1159
petition is filed against such a section as amended or enacted, or 1160
against an item of which such a section is composed, the section 1161
as amended or enacted or item, unless rejected at the referendum, 1162
takes effect at the earliest time permitted by law.1163

       Section 8. The uncodified sections of law contained in this 1164
act, and the items of law of which the uncodified sections of law 1165
contained in this act are composed, are not subject to the 1166
referendum. Therefore, under Ohio Constitution, Article II, 1167
Section 1d and section 1.471 of the Revised Code, the uncodified 1168
sections of law contained in this act, and the items of law of 1169
which the uncodified sections of law contained in this act are 1170
composed, go into immediate effect when this act becomes law.1171

       Section 9. An item that composes the whole or part of an 1172
uncodified section contained in this act has no effect after June 1173
30, 2005, unless the context clearly indicates otherwise.1174

       Section 10.  Section 4123.01 of the Revised Code is presented 1175
in this act as a composite of the section as amended by both H.B. 1176
675 and Am. Sub. S.B. 223 of the 124th General Assembly. The 1177
General Assembly, applying the principle stated in division (B) of 1178
section 1.52 of the Revised Code that amendments are to be 1179
harmonized if reasonably capable of simultaneous operation, finds 1180
that the composite is the resulting version of the section in 1181
effect prior to the effective date of the section as presented in 1182
this act.1183

       Section 11. If any item of law that constitutes the whole or 1184
part of a codified or uncodified section of law contained in this 1185
act, or if any application of any item of law that constitutes the 1186
whole or part of a codified or uncodified section of law contained 1187
in this act, is held invalid, the invalidity does not affect other 1188
times of law or applications of items of law that can be given 1189
effect without the invalid item of law or application. To this 1190
end, the items of law of which the codified and uncodified 1191
sections of law contained in this act are composed, and their 1192
applications, are independent and severable.1193