SENATORS Wachtmann, Schuring, Austria, Amstutz, Stivers, Harris, Dann, Spada, Coughlin, Armbruster, Jordan, Randy Gardner, Jacobson

To amend sections 102.02, 102.06, 117.10, 145.04,

1

145.05, 145.051, 145.06, 145.09, 145.27, 171.01,

2

171.03, 171.04, 742.03, 742.04, 742.05, 742.10,

3

742.41, 1707.01, 1707.17, 1707.19, 1707.20,

4

1707.22, 1707.23, 1707.25, 1707.431, 1707.44,

5

1707.46, 3307.03, 3307.05, 3307.06, 3307.07,

6

3307.11, 3307.20, 3309.03, 3309.05, 3309.06,

7

3309.07, 3309.14, 3309.22, 5505.04, and 5505.07;

8

to amend, for the purpose of adopting new section

9

numbers as indicated in parentheses, sections

10

145.051 (145.052) and 3309.061 (3309.071); to

11

enact new sections 145.051 and 3309.061; and

12

sections 109.98, 111.30, 145.041, 145.053,

13

145.054, 145.055, 145.057, 145.092, 145.093,

14

145.114, 145.99, 171.06, 171.50, 742.031, 742.042,

15

742.043, 742.044, 742.046, 742.102, 742.103,

16

742.114, 742.99, 1707.142, 1707.152, 3307.041,

17

3307.042, 3307.051, 3307.061, 3307.072, 3307.073,

18

3307.074, 3307.152, 3307.99, 3309.041, 3309.042,

19

3309.051, 3309.072, 3309.073, 3309.074, 3309.157,

20

3309.99, 5505.041, 5505.042, 5505.043, 5505.044,

21

5505.045, 5505.046, 5505.048, 5505.062, 5505.063,

22

5505.064, 5505.065, 5505.122, and 5505.99 of the

23

Revised Code regarding governance of Ohio's five

24

public retirement systems.

25

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

Section 1. That sections 102.02, 102.06, 117.10, 145.04,	26
145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.03, 171.04,	27
742.03, 742.04, 742.05, 742.10, 742.41, 1707.01, 1707.17, 1707.19,	28
1707.20, 1707.22, 1707.23, 1707.25, 1707.431, 1707.44, 1707.46,	29
3307.03, 3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03,	30
3309.05, 3309.06, 3309.07, 3309.14, 3309.22, 5505.04, and 5505.07	31
be amended; sections 145.051 (145.052) and 3309.061 (3309.071) be	32
amended for the purpose of adopting new section numbers as	33
indicated in parentheses; and new sections 145.051 and 3309.061	34
and sections 109.98, 111.30, 145.041, 145.053, 145.054, 145.055,	35
145.057, 145.092, 145.093, 145.114, 145.99, 171.06, 171.50,	36
742.031, 742.042, 742.043, 742.044, 742.046, 742.102, 742.103,	37
742.114, 742.99, 1707.142, 1707.152, 3307.041, 3307.042, 3307.051,	38
3307.061, 3307.072, 3307.073, 3307.074, 3307.152, 3307.99,	39
3309.041, 3309.042, 3309.051, 3309.072, 3309.073, 3309.074,	40
3309.157, 3309.99, 5505.041, 5505.042, 5505.043, 5505.044,	41
5505.045, 5505.046, 5505.048, 5505.062, 5505.063, 5505.064,	42
5505.065, 5505.122, and 5505.99 of the Revised Code be enacted to	43
read as follows:	44

Sec. 102.02.  (A) Except as otherwise provided in division	45
(H) of this section, all of the following shall file with the	46
appropriate ethics commission the disclosure statement described	47
in this division on a form prescribed by the appropriate	48
commission: every person who is elected to or is a candidate for a	49
state, county, or city office, or the office of member of the	50
United States congress, and every person who is appointed to fill	51
a vacancy for an unexpired term in such an elective office; all	52
members of the state board of education; the director, assistant	53
directors, deputy directors, division chiefs, or persons of	54
equivalent rank of any administrative department of the state; the	55
president or other chief administrative officer of every state	56
institution of higher education as defined in section 3345.011 of	57
the Revised Code; the chief executive officer and the members of	58
the board of each state retirement system; each employee of a	59
state retirement board whose position involves substantial and	60
material exercise of discretion in the formulation of policy or	61
the expenditure or investment of retirement system funds; all	62
members of the board of commissioners on grievances and discipline	63
of the supreme court and the ethics commission created under	64
section 102.05 of the Revised Code; every business manager,	65
treasurer, or superintendent of a city, local, exempted village,	66
joint vocational, or cooperative education school district or an	67
educational service center; every person who is elected to or is a	68
candidate for the office of member of a board of education of a	69
city, local, exempted village, joint vocational, or cooperative	70
education school district or of a governing board of an	71
educational service center that has a total student count of	72
twelve thousand or more as most recently determined by the	73
department of education pursuant to section 3317.03 of the Revised	74
Code; every person who is appointed to the board of education of a	75
municipal school district pursuant to division (B) or (F) of	76
section 3311.71 of the Revised Code; all members of the board of	77
directors of a sanitary district established under Chapter 6115.	78
of the Revised Code and organized wholly for the purpose of	79
providing a water supply for domestic, municipal, and public use	80
that includes two municipal corporations in two counties; every	81
public official or employee who is paid a salary or wage in	82
accordance with schedule C of section 124.15 or schedule E-2 of	83
section 124.152 of the Revised Code; members of the board of	84
trustees and the executive director of the tobacco use prevention	85
and control foundation; members of the board of trustees and the	86
executive director of the southern Ohio agricultural and community	87
development foundation; and every other public official or	88
employee who is designated by the appropriate ethics commission	89
pursuant to division (B) of this section shall file with the	90
appropriate ethics commission on a form prescribed by the	91
commission, a statement disclosing all of the following:.	92

The disclosure statement shall include all of the following:

93

(1) The name of the person filing the statement and each	94
member of the person's immediate family and all names under which	95
the person or members of the person's immediate family do	96
business;	97

(2)(a) Subject to divisions (A)(2)(b) and (c) of this section	98
and except as otherwise provided in section 102.022 of the Revised	99
Code, identification of every source of income, other than income	100
from a legislative agent identified in division (A)(2)(b) of this	101
section, received during the preceding calendar year, in the	102
person's own name or by any other person for the person's use or	103
benefit, by the person filing the statement, and a brief	104
description of the nature of the services for which the income was	105
received. If the person filing the statement is a member of the	106
general assembly, the statement shall identify the amount of every	107
source of income received in accordance with the following ranges	108
of amounts: zero or more, but less than one thousand dollars; one	109
thousand dollars or more, but less than ten thousand dollars; ten	110
thousand dollars or more, but less than twenty-five thousand	111
dollars; twenty-five thousand dollars or more, but less than fifty	112
thousand dollars; fifty thousand dollars or more, but less than	113
one hundred thousand dollars; and one hundred thousand dollars or	114
more. Division (A)(2)(a) of this section shall not be construed to	115
require a person filing the statement who derives income from a	116
business or profession to disclose the individual items of income	117
that constitute the gross income of that business or profession,	118
except for those individual items of income that are attributable	119
to the person's or, if the income is shared with the person, the	120
partner's, solicitation of services or goods or performance,	121
arrangement, or facilitation of services or provision of goods on	122
behalf of the business or profession of clients, including	123
corporate clients, who are legislative agents as defined in	124
section 101.70 of the Revised Code. A person who files the	125
statement under this section shall disclose the identity of and	126
the amount of income received from a person who the public	127
official or employee knows or has reason to know is doing or	128
seeking to do business of any kind with the public official's or	129
employee's agency.	130

(b) If the person filing the statement is a member of the	131
general assembly, the statement shall identify every source of	132
income and the amount of that income that was received from a	133
legislative agent, as defined in section 101.70 of the Revised	134
Code, during the preceding calendar year, in the person's own name	135
or by any other person for the person's use or benefit, by the	136
person filing the statement, and a brief description of the nature	137
of the services for which the income was received. Division	138
(A)(2)(b) of this section requires the disclosure of clients of	139
attorneys or persons licensed under section 4732.12 of the Revised	140
Code, or patients of persons certified under section 4731.14 of	141
the Revised Code, if those clients or patients are legislative	142
agents. Division (A)(2)(b) of this section requires a person	143
filing the statement who derives income from a business or	144
profession to disclose those individual items of income that	145
constitute the gross income of that business or profession that	146
are received from legislative agents.	147

(c) Except as otherwise provided in division (A)(2)(c) of	148
this section, division (A)(2)(a) of this section applies to	149
attorneys, physicians, and other persons who engage in the	150
practice of a profession and who, pursuant to a section of the	151
Revised Code, the common law of this state, a code of ethics	152
applicable to the profession, or otherwise, generally are required	153
not to reveal, disclose, or use confidences of clients, patients,	154
or other recipients of professional services except under	155
specified circumstances or generally are required to maintain	156
those types of confidences as privileged communications except	157
under specified circumstances. Division (A)(2)(a) of this section	158
does not require an attorney, physician, or other professional	159
subject to a confidentiality requirement as described in division	160
(A)(2)(c) of this section to disclose the name, other identity, or	161
address of a client, patient, or other recipient of professional	162
services if the disclosure would threaten the client, patient, or	163
other recipient of professional services, would reveal details of	164
the subject matter for which legal, medical, or professional	165
advice or other services were sought, or would reveal an otherwise	166
privileged communication involving the client, patient, or other	167
recipient of professional services. Division (A)(2)(a) of this	168
section does not require an attorney, physician, or other	169
professional subject to a confidentiality requirement as described	170
in division (A)(2)(c) of this section to disclose in the brief	171
description of the nature of services required by division	172
(A)(2)(a) of this section any information pertaining to specific	173
professional services rendered for a client, patient, or other	174
recipient of professional services that would reveal details of	175
the subject matter for which legal, medical, or professional	176
advice was sought or would reveal an otherwise privileged	177
communication involving the client, patient, or other recipient of	178
professional services.	179

(3) The name of every corporation on file with the secretary	180
of state that is incorporated in this state or holds a certificate	181
of compliance authorizing it to do business in this state, trust,	182
business trust, partnership, or association that transacts	183
business in this state in which the person filing the statement or	184
any other person for the person's use and benefit had during the	185
preceding calendar year an investment of over one thousand dollars	186
at fair market value as of the thirty-first day of December of the	187
preceding calendar year, or the date of disposition, whichever is	188
earlier, or in which the person holds any office or has a	189
fiduciary relationship, and a description of the nature of the	190
investment, office, or relationship. Division (A)(3) of this	191
section does not require disclosure of the name of any bank,	192
savings and loan association, credit union, or building and loan	193
association with which the person filing the statement has a	194
deposit or a withdrawable share account.	195

(4) All fee simple and leasehold interests to which the	196
person filing the statement holds legal title to or a beneficial	197
interest in real property located within the state, excluding the	198
person's residence and property used primarily for personal	199
recreation;	200

(5) The names of all persons residing or transacting business	201
in the state to whom the person filing the statement owes, in the	202
person's own name or in the name of any other person, more than	203
one thousand dollars. Division (A)(5) of this section shall not be	204
construed to require the disclosure of debts owed by the person	205
resulting from the ordinary conduct of a business or profession or	206
debts on the person's residence or real property used primarily	207
for personal recreation, except that the superintendent of	208
financial institutions shall disclose the names of all	209
state-chartered savings and loan associations and of all service	210
corporations subject to regulation under division (E)(2) of	211
section 1151.34 of the Revised Code to whom the superintendent in	212
the superintendent's own name or in the name of any other person	213
owes any money, and that the superintendent and any deputy	214
superintendent of banks shall disclose the names of all	215
state-chartered banks and all bank subsidiary corporations subject	216
to regulation under section 1109.44 of the Revised Code to whom	217
the superintendent or deputy superintendent owes any money.	218

(6) The names of all persons residing or transacting business	219
in the state, other than a depository excluded under division	220
(A)(3) of this section, who owe more than one thousand dollars to	221
the person filing the statement, either in the person's own name	222
or to any person for the person's use or benefit. Division (A)(6)	223
of this section shall not be construed to require the disclosure	224
of clients of attorneys or persons licensed under section 4732.12	225
or 4732.15 of the Revised Code, or patients of persons certified	226
under section 4731.14 of the Revised Code, nor the disclosure of	227
debts owed to the person resulting from the ordinary conduct of a	228
business or profession.	229

(7) Except as otherwise provided in section 102.022 of the	230
Revised Code, the source of each gift of over seventy-five	231
dollars, or of each gift of over twenty-five dollars received by a	232
member of the general assembly from a legislative agent, received	233
by the person in the person's own name or by any other person for	234
the person's use or benefit during the preceding calendar year,	235
except gifts received by will or by virtue of section 2105.06 of	236
the Revised Code, or received from spouses, parents, grandparents,	237
children, grandchildren, siblings, nephews, nieces, uncles, aunts,	238
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,	239
fathers-in-law, mothers-in-law, or any person to whom the person	240
filing the statement stands in loco parentis, or received by way	241
of distribution from any inter vivos or testamentary trust	242
established by a spouse or by an ancestor;	243

(8) Except as otherwise provided in section 102.022 of the	244
Revised Code, identification of the source and amount of every	245
payment of expenses incurred for travel to destinations inside or	246
outside this state that is received by the person in the person's	247
own name or by any other person for the person's use or benefit	248
and that is incurred in connection with the person's official	249
duties, except for expenses for travel to meetings or conventions	250
of a national or state organization to which any state agency,	251
including, but not limited to, any legislative agency or state	252
institution of higher education as defined in section 3345.011 of	253
the Revised Code, pays membership dues, or any political	254
subdivision or any office or agency of a political subdivision	255
pays membership dues;	256

(9) Except as otherwise provided in section 102.022 of the	257
Revised Code, identification of the source of payment of expenses	258
for meals and other food and beverages, other than for meals and	259
other food and beverages provided at a meeting at which the person	260
participated in a panel, seminar, or speaking engagement or at a	261
meeting or convention of a national or state organization to which	262
any state agency, including, but not limited to, any legislative	263
agency or state institution of higher education as defined in	264
section 3345.011 of the Revised Code, pays membership dues, or any	265
political subdivision or any office or agency of a political	266
subdivision pays membership dues, that are incurred in connection	267
with the person's official duties and that exceed one hundred	268
dollars aggregated per calendar year;	269

(10) If the financial disclosure statement is filed by a	270
public official or employee described in division (B)(2) of	271
section 101.73 of the Revised Code or division (B)(2) of section	272
121.63 of the Revised Code who receives a statement from a	273
legislative agent, executive agency lobbyist, or employer that	274
contains the information described in division (F)(2) of section	275
101.73 of the Revised Code or division (G)(2) of section 121.63 of	276
the Revised Code, all of the nondisputed information contained in	277
the statement delivered to that public official or employee by the	278
legislative agent, executive agency lobbyist, or employer under	279
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of	280
the Revised Code. As used in division (A)(10) of this section,	281
"legislative agent," "executive agency lobbyist," and "employer"	282
have the same meanings as in sections 101.70 and 121.60 of the	283
Revised Code.	284

A person may file a statement required by this section in	285
person or by mail. A person who is a candidate for elective office	286
shall file the statement no later than the thirtieth day before	287
the primary, special, or general election at which the candidacy	288
is to be voted on, whichever election occurs soonest, except that	289
a person who is a write-in candidate shall file the statement no	290
later than the twentieth day before the earliest election at which	291
the person's candidacy is to be voted on. A person who holds	292
elective office shall file the statement on or before the	293
fifteenth day of April of each year unless the person is a	294
candidate for office. A person who is appointed to fill a vacancy	295
for an unexpired term in an elective office shall file the	296
statement within fifteen days after the person qualifies for	297
office. Other persons shall file an annual statement on or before	298
the fifteenth day of April or, if appointed or employed after that	299
date, within ninety days after appointment or employment. No	300
person shall be required to file with the appropriate ethics	301
commission more than one statement or pay more than one filing fee	302
for any one calendar year.	303

The appropriate ethics commission, for good cause, may extend	304
for a reasonable time the deadline for filing a statement under	305
this section.	306

A statement filed under this section is subject to public	307
inspection at locations designated by the appropriate ethics	308
commission except as otherwise provided in this section.	309

(B) The Ohio ethics commission, the joint legislative ethics	310
committee, and the board of commissioners on grievances and	311
discipline of the supreme court, using the rule-making procedures	312
of Chapter 119. of the Revised Code, may require any class of	313
public officials or employees under its jurisdiction and not	314
specifically excluded by this section whose positions involve a	315
substantial and material exercise of administrative discretion in	316
the formulation of public policy, expenditure of public funds,	317
enforcement of laws and rules of the state or a county or city, or	318
the execution of other public trusts, to file an annual statement	319
on or before the fifteenth day of April under division (A) of this	320
section. The appropriate ethics commission shall send the public	321
officials or employees written notice of the requirement by the	322
fifteenth day of February of each year the filing is required	323
unless the public official or employee is appointed after that	324
date, in which case the notice shall be sent within thirty days	325
after appointment, and the filing shall be made not later than	326
ninety days after appointment.	327

Except for disclosure statements filed by members of the	328
board of trustees and the executive director of the tobacco use	329
prevention and control foundation and members of the board of	330
trustees and the executive director of the southern Ohio	331
agricultural and community development foundation, disclosure	332
statements filed under this division with the Ohio ethics	333
commission by members of boards, commissions, or bureaus of the	334
state for which no compensation is received other than reasonable	335
and necessary expenses shall be kept confidential. Disclosure	336
statements filed with the Ohio ethics commission under division	337
(A) of this section by business managers, treasurers, and	338
superintendents of city, local, exempted village, joint	339
vocational, or cooperative education school districts or	340
educational service centers shall be kept confidential, except	341
that any person conducting an audit of any such school district or	342
educational service center pursuant to section 115.56 or Chapter	343
117. of the Revised Code may examine the disclosure statement of	344
any business manager, treasurer, or superintendent of that school	345
district or educational service center. The Ohio ethics commission	346
shall examine each disclosure statement required to be kept	347
confidential to determine whether a potential conflict of interest	348
exists for the person who filed the disclosure statement. A	349
potential conflict of interest exists if the private interests of	350
the person, as indicated by the person's disclosure statement,	351
might interfere with the public interests the person is required	352
to serve in the exercise of the person's authority and duties in	353
the person's office or position of employment. If the commission	354
determines that a potential conflict of interest exists, it shall	355
notify the person who filed the disclosure statement and shall	356
make the portions of the disclosure statement that indicate a	357
potential conflict of interest subject to public inspection in the	358
same manner as is provided for other disclosure statements. Any	359
portion of the disclosure statement that the commission determines	360
does not indicate a potential conflict of interest shall be kept	361
confidential by the commission and shall not be made subject to	362
public inspection, except as is necessary for the enforcement of	363
Chapters 102. and 2921. of the Revised Code and except as	364
otherwise provided in this division.	365

(C) No person shall knowingly fail to file, on or before the	366
applicable filing deadline established under this section, a	367
statement that is required by this section.	368

(D) No person shall knowingly file a false statement that is	369
required to be filed under this section.	370

(E)(1) Except as provided in divisions (E)(2) and (3) of this	371
section, the statement required by division (A) or (B) of this	372
section shall be accompanied by a filing fee of forty dollars.	373

(2) The statement required by division (A) of this section	374
shall be accompanied by the following filing fee to be paid by the	375
person who is elected or appointed to, or is a candidate for, any	376
of the following offices:	377

(3) No judge of a court of record or candidate for judge of a	397
court of record, and no referee or magistrate serving a court of	398
record, shall be required to pay the fee required under division	399
(E)(1) or (2) or (F) of this section.	400

(4) For any public official who is appointed to a nonelective	401
office of the state and for any employee who holds a nonelective	402
position in a public agency of the state, the state agency that is	403
the primary employer of the state official or employee shall pay	404
the fee required under division (E)(1) or (F) of this section.	405

(F) If a statement required to be filed under this section is	406
not filed by the date on which it is required to be filed, the	407
appropriate ethics commission shall assess the person required to	408
file the statement a late filing fee of ten dollars for each day	409
the statement is not filed, except that the total amount of the	410
late filing fee shall not exceed two hundred fifty dollars.	411

(G)(1) The appropriate ethics commission other than the Ohio	412
ethics commission shall deposit all fees it receives under	413
divisions (E) and (F) of this section into the general revenue	414
fund of the state.	415

(2) The Ohio ethics commission shall deposit all receipts,	416
including, but not limited to, fees it receives under divisions	417
(E) and (F) of this section and all moneys it receives from	418
settlements under division (G) of section 102.06 of the Revised	419
Code, into the Ohio ethics commission fund, which is hereby	420
created in the state treasury. All moneys credited to the fund	421
shall be used solely for expenses related to the operation and	422
statutory functions of the commission.	423

(H) Division (A) of this section does not apply to a person	424
elected or appointed to the office of precinct, ward, or district	425
committee member under Chapter 3517. of the Revised Code; a	426
presidential elector; a delegate to a national convention; village	427
or township officials and employees; any physician or psychiatrist	428
who is paid a salary or wage in accordance with schedule C of	429
section 124.15 or schedule E-2 of section 124.152 of the Revised	430
Code and whose primary duties do not require the exercise of	431
administrative discretion; or any member of a board, commission,	432
or bureau of any county or city who receives less than one	433
thousand dollars per year for serving in that position.	434

Sec. 102.06.  (A) The appropriate ethics commission shall	435
receive and may initiate complaints against persons subject to	436
Chapter 102. of the Revised Code concerning conduct alleged to be	437
in violation of this chapter or section 2921.42 or 2921.43 of the	438
Revised Code. All complaints except those by the commission shall	439
be by affidavit made on personal knowledge, subject to the	440
penalties of perjury. Complaints by the commission shall be by	441
affidavit, based upon reasonable cause to believe that a violation	442
has occurred.	443

(B) The commission shall investigate complaints, may	444
investigate charges presented to it, and may request further	445
information, including the specific amount of income from a	446
source, from any person filing with the commission a statement	447
required by section 102.02 of the Revised Code, if the information	448
sought is directly relevant to a complaint or charges received by	449
the commission pursuant to this section. This information is	450
confidential, except that the commission, at its discretion, may	451
share information gathered in the course of any investigation	452
with, or disclose the information to, the inspector general, any	453
appropriate prosecuting authority, any law enforcement agency, or	454
any other appropriate ethics commission. The person so requested	455
shall furnish the information to the commission, unless within	456
fifteen days from the date of the request the person files an	457
action for declaratory judgment challenging the legitimacy of the	458
request in the court of common pleas of the county of the person's	459
residence, the person's place of employment, or Franklin county.	460
The requested information need not be furnished to the commission	461
during the pendency of the judicial proceedings. Proceedings of	462
the commission in connection with the declaratory judgment action	463
shall be kept confidential except as otherwise provided by this	464
section. Before the commission proceeds to take any formal action	465
against a person who is the subject of an investigation based on	466
charges presented to the commission, a complaint shall be filed	467
against the person. If the commission finds that a complaint is	468
not frivolous, and there is reasonable cause to believe that the	469
facts alleged in a complaint constitute a violation of section	470
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised	471
Code, it shall hold a hearing. If the commission does not so find,	472
it shall dismiss the complaint and notify the accused person in	473
writing of the dismissal of the complaint. The commission shall	474
not make a report of its finding unless the accused person	475
requests a report. Upon the request of the accused person, the	476
commission shall make a public report of its finding. The person	477
against whom the complaint is directed shall be given reasonable	478
notice by certified mail of the date, time, and place of the	479
hearing and a statement of the charges and the law directly	480
involved and shall be given the opportunity to be represented by	481
counsel, to have counsel appointed for the person if the person is	482
unable to afford counsel without undue hardship, to examine the	483
evidence against the person, to produce evidence and to call and	484
subpoena witnesses in the person's defense, to confront the	485
person's accusers, and to cross-examine witnesses. The commission	486
shall have a stenographic record made of the hearing. The hearing	487
shall be closed to the public.	488

(C)(1)(a) If upon the basis of the hearing, the commission	489
finds by a preponderance of the evidence that the facts alleged in	490
the complaint are true and constitute a violation of section	491
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised	492
Code, it shall report its findings to the appropriate prosecuting	493
authority for proceedings in prosecution of the violation and to	494
the appointing or employing authority of the accused. If the	495
accused person is a member of the public employees retirement	496
board, state teachers retirement board, school employees	497
retirement board, board of trustees of the Ohio police and fire	498
pension fund, or state highway patrol retirement board, the	499
commission also shall report its findings to the Ohio retirement	500
study council.	501

(b) If the Ohio ethics commission reports its findings to the	502
appropriate prosecuting authority under division (C)(1)(a) of this	503
section and the prosecuting authority has not initiated any	504
official action on those findings within ninety days after	505
receiving the commission's report of them, then the commission may	506
publicly comment that no official action has been taken on its	507
findings, except that the commission shall make no comment in	508
violation of the Rules of Criminal Procedure or about any	509
indictment that has been sealed pursuant to any law or those	510
rules. The commission shall make no comment regarding the merits	511
of its findings. As used in division (C)(1)(b) of this section,	512
"official action" means prosecution, closure after investigation,	513
or grand jury action resulting in a true bill of indictment or no	514
true bill of indictment.	515

(2) If the appropriate ethics commission does not find by a	516
preponderance of the evidence that the facts alleged in the	517
complaint are true and constitute a violation of section 102.02,	518
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code or	519
if the commission has not scheduled a hearing within ninety days	520
after the complaint is filed or has not finally disposed of the	521
complaint within six months after it has been heard, it shall	522
dismiss the complaint and notify the accused person in writing of	523
the dismissal of the complaint. The commission shall not make a	524
report of its finding unless the accused person requests a report.	525
Upon the request of the accused person, the commission shall make	526
a public report of the finding, but in this case all evidence and	527
the record of the hearing shall remain confidential unless the	528
accused person also requests that the evidence and record be made	529
public. Upon request by the accused person, the commission shall	530
make the evidence and the record available for public inspection.	531

(D) The commission, or a member of the commission, may	532
administer oaths, and the commission may issue subpoenas to any	533
person in the state compelling the attendance of witnesses and the	534
production of relevant papers, books, accounts, and records. The	535
commission shall issue subpoenas to compel the attendance of	536
witnesses and the production of documents upon the request of an	537
accused person. Section 101.42 of the Revised Code shall govern	538
the issuance of these subpoenas insofar as applicable. Upon the	539
refusal of any person to obey a subpoena or to be sworn or to	540
answer as a witness, the commission may apply to the court of	541
common pleas of Franklin county under section 2705.03 of the	542
Revised Code. The court shall hold proceedings in accordance with	543
Chapter 2705. of the Revised Code. The commission or the accused	544
person may take the depositions of witnesses residing within or	545
without the state in the same manner as prescribed by law for the	546
taking of depositions in civil actions in the court of common	547
pleas.	548

(E) At least once each year, the Ohio ethics commission shall	549
report on its activities of the immediately preceding year to the	550
majority and minority leaders of the senate and house of	551
representatives of the general assembly. The report shall indicate	552
the total number of complaints received, initiated, and	553
investigated by the commission, the total number of complaints for	554
which formal hearings were held, and the total number of	555
complaints for which formal prosecution was recommended or	556
requested by the commission. The report also shall indicate the	557
nature of the inappropriate conduct alleged in each complaint and	558
the governmental entity with which any employee or official that	559
is the subject of a complaint was employed at the time of the	560
alleged inappropriate conduct.	561

(F) All papers, records, affidavits, and documents upon any	562
complaint, inquiry, or investigation relating to the proceedings	563
of the appropriate commission shall be sealed and are private and	564
confidential, except as otherwise provided in this section and	565
section 102.07 of the Revised Code.	566

(G)(1) When a complaint or charge is before it, the Ohio	567
ethics commission or the appropriate prosecuting authority, in	568
consultation with the person filing the complaint or charge, the	569
accused, and any other person the commission or prosecuting	570
authority considers necessary, may compromise or settle the	571
complaint or charge with the agreement of the accused. The	572
compromise or settlement may include mediation, restitution,	573
rescission of affected contracts, forfeiture of any benefits	574
resulting from a violation or potential violation of law,	575
resignation of a public official or employee, or any other relief	576
that is agreed upon between the commission or prosecuting	577
authority and the accused.	578

(2) Any settlement agreement entered into under division	579
(G)(1) of this section shall be in writing and be accompanied by a	580
statement of the findings of the commission or prosecuting	581
authority and the reasons for entering into the agreement. The	582
commission or prosecuting authority shall retain the agreement and	583
statement in the commission's or prosecuting attorney's	584
authority's office and, in the commission's or prosecuting	585
authority's discretion, may make the agreement, the statement, and	586
any supporting information public, unless the agreement provides	587
otherwise.	588

(3) If a settlement agreement is breached by the accused, the	589
commission or prosecuting authority, in the commission's or	590
prosecuting authority's discretion, may rescind the agreement and	591
reinstitute any investigation, hearing, or prosecution of the	592
accused. No information obtained from the accused in reaching the	593
settlement that is not otherwise discoverable from the accused	594
shall be used in any proceeding before the commission or by the	595
appropriate prosecuting authority in prosecuting the violation.	596
Notwithstanding any other section of the Revised Code, if a	597
settlement agreement is breached, any statute of limitations for a	598
violation of this chapter or section 2921.42 or 2921.43 of the	599
Revised Code is tolled from the date the complaint or charge is	600
filed until the date the settlement agreement is breached.	601

Sec. 109.98. As used in this section, "state retirement	602
board" means the public employees retirement board, board of	603
trustees of the Ohio police and fire pension fund, school	604
employees retirement board, state teachers retirement board, and	605
state highway patrol retirement board.	606

If a member of a state retirement board breaches the member's	607
fiduciary duty to the retirement system, the attorney general may	608
maintain a civil action against the board member for harm	609
resulting from that breach. The attorney general may recover	610
damages or be granted injunctive relief, which shall include the	611
enjoinment of specified activities and the removal of the member	612
from the board. Any damages awarded shall be paid to the	613
retirement system.	614

Sec. 111.30. (A) As used in this section, "state retirement	615
board" means the public employees retirement board, board of	616
trustees of the Ohio police and fire pension fund, school	617
employees retirement board, state teachers retirement board, and	618
state highway patrol retirement board.	619

(B) The secretary of state shall do all of the following:

620

(1) Adopt rules in accordance with Chapter 119. of the	621
Revised Code governing the election of state retirement board	622
members under sections 145.05, 742.04, 3307.07, 3309.07, and	623
5505.041 of the Revised Code, including special elections provided	624
for by section 145.051 of the Revised Code;	625

(2) Oversee the administration of board member elections by	626
state retirement boards;	627

(3) Certify the validity of nominating petitions for the	628
elections;	629

(4) Certify the results of the elections;

630

(5) Prescribe forms for campaign finance disclosure	631
statements for the purpose of sections 145.053, 742.042, 3307.072,	632
3309.072, and 5505.044 of the Revised Code and accept the forms	633
from candidates filing them with the secretary pursuant to those	634
sections;	635

(6) Oversee elections held under sections 145.06, 742.05,	636
3307.06, 3309.06, and 5505.042 of the Revised Code to fill	637
vacancies in the boards;	638

(7) Certify the results of the elections to fill vacancies in	639
the boards.	640

Sec. 117.10.  The auditor of state shall audit all public	641
offices as provided in this chapter. The auditor of state also may	642
audit the accounts of private institutions, associations, boards,	643
and corporations receiving public money for their use and may	644
require of them annual reports in such form as the auditor of	645
state prescribes.	646

If the auditor of state performs or contracts for the	647
performance of an audit, including a special audit, of the public	648
employees retirement system, school employees retirement system,	649
state teachers retirement system, state highway patrol retirement	650
system, or Ohio police and fire pension fund, the auditor of state	651
shall make a timely report of the results of the audit to the Ohio	652
retirement study council.	653

The auditor of state may audit the accounts of any provider	654
as defined in section 5111.06 of the Revised Code, if requested by	655
the department of job and family services.	656

If a public office has been audited by an agency of the	657
United States government, the auditor of state may, if satisfied	658
that the federal audit has been conducted according to principles	659
and procedures not contrary to those of the auditor of state, use	660
and adopt the federal audit and report in lieu of an audit by the	661
auditor of state's own office.	662

Within thirty days after the creation or dissolution or the	663
winding up of the affairs of any public office, that public office	664
shall notify the auditor of state in writing that this action has	665
occurred.	666

Sec. 145.04.  The general administration and management of	667
the public employees retirement system and the making effective of	668
Chapter 145. of the Revised Code, are hereby vested in a board to	669
be known as the "public employees retirement board," which shall	670
consist of nine members as follows:	671

(A) The attorney generaldirector of budget and management;

672

(B) The auditor of state;

673

(C) The director of administrative services;

674

(D) Five members, known as employee members, one of whom	675
shall be a state employee member of the system, who shall be	676
elected by ballot by the state employee members of the system from	677
among their number; another of whom shall be a county employee	678
member of the system, who shall be elected by ballot by the county	679
employee members of the system from among their number; another of	680
whom shall be a municipal employee member of the system, who shall	681
be elected by ballot by the municipal employee members of the	682
system from among their number; another of whom shall be a	683
university or college employee member of the system, who shall be	684
elected by ballot by the university and college employee members	685
of the system from among their number; and another of whom shall	686
be a park district, conservancy district, sanitary district,	687
health district, public library, township, metropolitan housing	688
authority, union cemetery, joint hospital, or institutional	689
commissary employee member of the system, who shall be elected by	690
ballot by the park district, conservancy district, sanitary	691
district, health district, metropolitan housing authority,	692
township, public library, union cemetery, joint hospital, and	693
institutional commissary employee members of the system from among	694
their number, in a manner to be approved by the board. Members of	695
the system who are receiving a disability benefit under this	696
chapter are ineligible for membership on the board as employee	697
members.	698

(E) One member, known as the retirant member, who shall be a	699
former member of the public employees retirement system who is a	700
resident of this state and a recipient of age and service	701
retirement, a disability benefit, or benefits paid under a PERS	702
defined contribution plan. The retirant member shall be elected by	703
ballot by former members of the system who are receiving age and	704
service retirement, a disability benefit, or benefits paid under a	705
PERS defined contribution plan.	706

Sec. 145.041. Each newly elected member of the public	707
employees retirement board and each individual appointed to fill a	708
vacancy on the board, prior to commencing service as a board	709
member, shall complete the orientation program component of the	710
retirement board member education program established under	711
section 171.50 of the Revised Code.	712

Each member of the board who has served a year or longer as a	713
board member shall, not less than twice each year, attend one or	714
more programs that are part of the continuing education component	715
of the retirement board member education program established under	716
section 171.50 of the Revised Code.	717

Sec. 145.05.  (A) The terms of office of employee members of	718
the public employees retirement board shall be for four years each	719
beginning on the first day of January following election. The	720
election of the county employee member of the board and the	721
employee member of the board representing public library, health	722
district, park district, conservancy district, sanitary district,	723
township, metropolitan housing authority, union cemetery, joint	724
hospital, and institutional commissary employees shall be held on	725
the first Monday in October, 1945, and on the first Monday in	726
October in each fourth year thereafter. The election of the state	727
employee member of the board and the municipal employee member of	728
the board shall be held on the first Monday in October, 1946, and	729
on the first Monday in October in each fourth year thereafter. The	730
election of the initial university-college employee member of the	731
board shall be held on the first Monday in October, 1978, and	732
elections for subsequent university-college employee members of	733
the board shall be held on the first Monday in October in each	734
fourth year thereafter.	735

(B) The term of office of the retirant member of the public	736
employees retirement board shall be for four years beginning on	737
the first day of January following the election. The election of	738
the initial retirant member of the board shall be held on the	739
first Monday in October, 1978, and elections for subsequent	740
retirant members of the board shall be held on the first Monday in	741
October in each fourth year thereafter.	742

(C) AllThe board shall administer all elections for employee	743
members of the public employees retirement board shall be held	744
under the direction of the boardin accordance with rules adopted	745
under section 111.30 of the Revised Code. Any member of the public	746
employees retirement system, except a member who is receiving a	747
disability benefit under this chapter, is eligible for election as	748
an employee member of the board to represent the employee group	749
that includes the member, provided that the member has been	750
nominated by a petition that is signed by at least five hundred	751
members of the employee group to be represented and further	752
provided that there shall be, including not less than twenty such	753
signers from each of at least ten counties of the state, and	754
certified under section 111.30 of the Revised Code. The name of	755
any member so nominated shall be placed upon the ballot by the	756
board as a regular candidate. Names of other eligible candidates	757
may, at any election, be substituted for the regular candidates by	758
writing such names upon the ballots. The candidate who receives	759
the highest number of votes for a particular employee member	760
position on the board shall be elected to that office on	761
certification of the election results under section 111.30 of the	762
Revised Code.	763

(D) AllThe board shall administer all elections for the	764
retirant member of the public employees retirement board shall be	765
held under the direction of the boardin accordance with rules	766
adopted under section 111.30 of the Revised Code. Any former	767
member of the public employees retirement system who is described	768
in division (E) of section 145.04 of the Revised Code is eligible	769
for election as the retirant member of the board to represent	770
recipients of age and service retirement, a disability benefit, or	771
benefits paid under a PERS defined contribution plan, provided	772
that such person has been nominated by a petition that is signed	773
by any combination of at least two hundred fifty eligible, former	774
members of the system who are recipientsand certified under	775
section 111.30 of the Revised Code. To be eligible to sign the	776
petition, a former member of the system must be a recipient of age	777
and service retirement, a disability benefit, or benefits paid	778
under a PERS defined contribution plan, or any combination of such	779
recipients that totals two hundred fifty. The petition shall	780
contain the signatures of at least ten such recipients from each	781
of at least five counties wherein recipients of benefits from the	782
system reside.	783

The name of any person nominated in this manner shall be	784
placed upon the ballot by the board as a regular candidate. Names	785
of other eligible candidates may, at any election for the retirant	786
member of the board, be substituted for the regular candidates by	787
writing the names of such persons upon the ballot. The candidate	788
who receives the highest number of votes for any term as the	789
retirant member of the board shall be elected to office on	790
certification of the election results under section 111.30 of the	791
Revised Code.	792

Sec. 145.051. If a person elected to serve on the public	793
employees retirement board is unable to assume office at the	794
January meeting of the board following the person's election, a	795
special election shall be held in accordance with the provisions	796
of section 145.05 of the Revised Code within three months of the	797
January meeting. On certification of the elections results under	798
section 111.30 of the Revised Code, the newly elected person shall	799
assume office at the meeting of the board immediately following	800
the special election.	801

Sec. 145.051.        Sec. 145.052.  Notwithstanding sections 145.04 and	802
145.05 of the Revised Code, the public employees retirement board	803
is not required to hold an election, including a special election	804
under section 145.06145.051 of the Revised Code, for a position	805
on the board as an employee member or retirant member if only one	806
candidate has been nominated for the position by petition in	807
accordance with section 145.05 of the Revised Code. The candidate	808
shall take office as if elected. The term of office shall be four	809
years beginning on the first day of January following the date the	810
candidate was nominated.	811

Sec. 145.053.  (A) As used in this section:

812

(1) "Campaign committee" means a candidate or a combination	813
of two or more persons authorized by a candidate to receive	814
contributions and in-kind contributions and make expenditures on	815
behalf of the candidate.	816

(2) "Candidate" means an individual who has been nominated	817
pursuant to division (C) or (D) of section 145.05 of the Revised	818
Code for election to the public employees retirement board.	819

(3) "Contribution" means a loan, gift, deposit, forgiveness	820
of indebtedness, donation, advance, payment, transfer of funds or	821
transfer of anything of value including a transfer of funds from	822
an inter vivos or testamentary trust or decedent's estate, and the	823
payment by any person other than the person to whom the services	824
are rendered for the personal services of another person, which	825
contribution is made, received, or used for the purpose of	826
influencing the results of an election to the public employees	827
retirement board under section 145.05 of the Revised Code,	828
including a special election provided for by section 145.051 of	829
the Revised Code. "Contribution" does not include:	830

(a) Services provided without compensation by individuals	831
volunteering a portion or all of their time on behalf of a person;	832

(b) Ordinary home hospitality;

833

(c) The personal expenses of a volunteer paid for by that	834
volunteer campaign worker.	835

(4) "Election day" means the following, as appropriate to the	836
situation:	837

(a) The first Monday in October of a year for which section	838
145.05 of the Revised Code specifies that an election for a member	839
of the public employees retirement board be held;	840

(b) If, pursuant to section 145.052 of the Revised Code, no	841
election is held, the first Monday in October of a year that the	842
election would have been held if not for section 145.052 of the	843
Revised Code;	844

(c) If the election is a special election provided for by	845
section 145.051 of the Revised Code, a day that the board shall	846
specify that is consistent with requirements for a special	847
election established by section 145.051 of the Revised Code.	848

(5) "Expenditure" means the disbursement or use of a	849
contribution for the purpose of influencing the results of an	850
election to the public employees retirement board under section	851
145.05 of the Revised Code, including a special election provided	852
for by section 145.051 of the Revised Code.	853

(6) "In-kind contribution" means anything of value other than	854
money that is used to influence the results of an election to the	855
public employees retirement board under section 145.05 of the	856
Revised Code or is transferred to or used in support of or in	857
opposition to a candidate and that is made with the consent of, in	858
coordination, cooperation, or consultation with, or at the request	859
or suggestion of the benefited candidate. The financing of the	860
dissemination, distribution, or republication, in whole or part,	861
of any broadcast or of any written, graphic, or other form of	862
campaign materials prepared by the candidate, the candidate's	863
campaign committee, or their authorized agents is an in-kind	864
contribution to the candidate and an expenditure by the candidate.	865

(7) "Personal expenses" includes ordinary expenses for	866
accommodations, clothing, food, personal motor vehicle or	867
airplane, and home telephone.	868

(B) Each candidate who, or whose campaign committee, receives	869
a contribution or in-kind contribution or makes an expenditure in	870
connection with the candidate's efforts to be elected to the	871
public employees retirement board shall file with the secretary of	872
state two complete, accurate, and itemized statements setting	873
forth in detail the contributions, in-kind contributions, and	874
expenditures. The statements shall be filed regardless of whether	875
the election is a regular election or, pursuant to section 145.051	876
of the Revised Code, a special election. The statements shall also	877
be filed regardless of whether, pursuant to section 145.052 of the	878
Revised Code, no election is held. The statements shall be made on	879
a form prescribed under section 111.30 of the Revised Code. The	880
first statement shall be filed not later than four p.m. on the day	881
that is twelve days before election day. The second statement	882
shall be filed not sooner than the day that is eight days after	883
election day and not later than thirty-eight days after election	884
day. The first statement shall reflect contributions and in-kind	885
contributions received and expenditures made to the close of	886
business on the twentieth day before election day. The second	887
statement shall reflect contributions and in-kind contributions	888
received and expenditures made during the period beginning on the	889
nineteenth day before election day and ending on the close of	890
business on the seventh day after election day.	891

Sec. 145.054.  No person shall knowingly fail to file a	892
complete and accurate statement in accordance with section 145.053	893
of the Revised Code.	894

Sec. 145.055.  The secretary of state, or any person acting	895
on personal knowledge and subject to the penalties of perjury, may	896
file a complaint with the Ohio elections commission alleging a	897
violation of section 145.054 of the Revised Code. The complaint	898
shall be made on a form prescribed and provided by the commission.	899

On receipt of a complaint under this section, the commission	900
shall hold a hearing open to the public to determine whether the	901
violation alleged in the complaint has occurred. The commission	902
may administer oaths and issue subpoenas to any person in the	903
state compelling the attendance of witnesses and the production of	904
relevant papers, books, accounts, and reports. On the refusal of	905
any person to obey a subpoena or to be sworn or to answer as a	906
witness, the commission may apply to the court of common pleas of	907
Franklin county under section 2705.03 of the Revised Code. The	908
court shall hold proceedings in accordance with Chapter 2705. of	909
the Revised Code.	910

The commission shall provide the person accused of the	911
violation at least seven days prior notice of the time, date, and	912
place of the hearing. The accused may be represented by an	913
attorney and shall have an opportunity to present evidence, call	914
witnesses, and cross-examine witnesses.	915

At the hearing, the commission shall determine whether the	916
violation alleged in the complaint has occurred. If the commission	917
determines that the violation has occurred, the commission shall	918
either impose a fine under section 145.99 of the Revised Code or	919
enter a finding that good cause has been shown not to impose the	920
fine.	921

Sec. 145.057.  A member of the public employees retirement	922
board who is charged with committing a felony, a theft offense as	923
defined in section 2913.01 of the Revised Code, or a violation of	924
section 102.02, 102.03, 102.04, 102.07, 2921.02, 2921.11, 2921.13,	925
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code	926
shall be suspended from participation on the board for the period	927
during which the charges are pending. If the charges are	928
dismissed, the member is found not guilty, or the charges are	929
otherwise resolved in a manner not resulting in the member being	930
convicted of or pleading guilty to an offense of that nature, the	931
suspension shall end, and the member may participate on the board.	932
If the member pleads guilty to or is convicted of the offense, the	933
position of the member on the board shall be deemed vacant. A	934
person who has pleaded guilty to or been convicted of an offense	935
of that nature is ineligible for election to the public employees	936
retirement board.	937

The Ohio retirement study council may hold a hearing to	938
determine whether to remove a member of the public employees	939
retirement board who has been suspended pursuant to this section.	940
If it decides to hold a hearing, the council shall provide the	941
suspended board member at least seven days prior notice of the	942
time, date, and place of the hearing. The suspended board member	943
may be represented by an attorney. At the hearing the suspended	944
board member, or the suspended board member's attorney, shall have	945
an opportunity to present evidence, call witnesses, and	946
cross-examine witnesses. The hearing shall be open to the public.	947
At the conclusion of the hearing, if the voting members of the	948
council unanimously vote to remove the suspended board member, the	949
suspended board member shall be removed from the board, and the	950
position of the member shall be deemed vacant.	951

Sec. 145.06.  (A) If a vacancy occurs in the term of any	952
employee member of the public employees retirement board, the	953
remaining members of the board shall elect ana successor employee	954
member from the employee group lacking representation because of	955
the vacancy for the unexpired term. On certification of the	956
election results under section 111.30 of the Revised Code, the	957
successor employee member shall hold office for the remainder of	958
the predecessor employee member's term.	959

Any employee member of the board who fails to attend the	960
meetings of the board for three months or longer, without valid	961
excuse, shall be considered as having resigned, and the board	962
shall declare the employee member's office vacated as of the date	963
of the adoption of a proper resolution.	964

(B) If a vacancy occurs during the term of office of the	965
retirant member of the board, the remaining members of the board	966
shall elect a successor retirant member who, on certification of	967
the election results under section 111.30 of the Revised Code,	968
shall hold office for the remainder of the predecessor retirant	969
member's term. The successor retirant member shall be a former	970
member of the public employees retirement system who is eligible	971
for election under section 145.04 of the Revised Code as the	972
retirant member of the board.	973

If a retirant member of the board fails to attend the	974
meetings of the board for three months or longer, without valid	975
excuse, the retirant member shall be considered as having	976
resigned, and the board shall declare the member's office vacated	977
as of the date of the adoption of a proper resolution.	978

If as a result of changed circumstances the retirant member	979
would no longer qualify for membership on the board as the	980
retirant member, the retirant member's office shall be considered	981
vacant, and a successor retirant member shall be chosen in the	982
manner specified in this division.	983

(C) If a person elected to serve on the board is unable to	984
assume office at the January meeting of the board following the	985
person's election, a special election shall be held in accordance	986
with the provisions of section 145.05 of the Revised Code within	987
three months of the January meeting and the newly elected person	988
shall assume office at the meeting of the board immediately	989
following the special electionElections under this section to	990
fill a vacancy on the board shall be conducted under the	991
supervision of the secretary of state pursuant to section 111.30	992
of the Revised Code.	993

Sec. 145.09.  The public employees retirement board shall	994
elect from its membership a chairperson, and shall appoint an	995
executive director who shall serve as secretary to the board, an	996
actuary, and other employees as necessary for the transaction of	997
the business of the public employees retirement system. The	998
compensation of all persons so appointed shall be fixed by the	999
board. Every	1000

Effective ninety days after the effective date of this	1001
amendment, the board may not employ a state retirement system	1002
investment officer, as defined in section 1707.01 of the Revised	1003
Code, who does not hold a valid state retirement system investment	1004
officer license issued by the division of securities in the	1005
department of commerce.	1006

Every expense voucher of an employee, officer, or board	1007
member of the public employees retirement system shall itemize all	1008
purchases and expenditures.	1009

The board shall perform other functions as required for the	1010
proper execution of this chapter, and may adopt rules in	1011
accordance with section 111.15 of the Revised Code for the proper	1012
administration and management of this chapter.	1013

The board may take all appropriate action to avoid payment by	1014
the system or its members of federal or state income taxes on	1015
contributions to the system or amounts earned on such	1016
contributions.	1017

Notice of proposed rules shall be given to interested parties	1018
and rules adopted by the board shall be published and otherwise	1019
made available. When it files a rule with the joint committee on	1020
agency rule review pursuant to section 111.15 of the Revised Code,	1021
the board shall submit to the Ohio retirement study council a copy	1022
of the full text of the rule, and if applicable, a copy of the	1023
rule summary and fiscal analysis required by division (B) of	1024
section 127.18 of the Revised Code.	1025

The board may sue and be sued, plead and be impleaded,	1026
contract and be contracted with. All of its business shall be	1027
transacted, all of its funds invested, all warrants for money	1028
drawn and payments made, and all of its cash and securities and	1029
other property shall be held in the name of the board, or in the	1030
name of its nominee, provided that nominees are authorized by	1031
retirement board resolution for the purpose of facilitating the	1032
ownership and transfer of investments.	1033

If the Ohio retirement study council establishes a uniform	1034
format for any report the board is required to submit to the	1035
council, the board shall submit the report in that format.	1036

Sec. 145.092. The public employees retirement board shall do	1037
all of the following:	1038

(A) In consultation with the Ohio ethics commission, review	1039
any existing policy regarding the travel and payment of travel	1040
expenses of members and employees of the public employees	1041
retirement board and adopt rules in accordance with section 145.09	1042
of the Revised Code establishing a new or revised policy regarding	1043
travel and payment of travel expenses;	1044

(B) Review any existing policy regarding compensation and	1045
bonuses paid to employees of the board and adopt rules in	1046
accordance with section 145.09 of the Revised Code establishing a	1047
new or revised policy regarding employee compensation and bonuses;	1048

(C) Provide copies of the rules adopted under this section to	1049
each member of the Ohio retirement study council.	1050

Sec. 145.093. The public employees retirement board	1051
periodically shall provide ethics training to members and	1052
employees of the board. The training shall include training	1053
regarding the requirements and prohibitions of Chapter 102. of the	1054
Revised Code and sections 2921.42 and 2921.43 of the Revised Code	1055
and any other training the board considers appropriate.	1056

The board shall establish a procedure to ensure that each	1057
employee of the board is informed of the procedure for filing a	1058
complaint alleging violation of Chapter 102. of the Revised Code	1059
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	1060
ethics commission or the appropriate prosecuting attorney.	1061

Sec. 145.114.  The attorney general may maintain a civil	1062
action under section 109.98 of the Revised Code against a member	1063
of the public employees retirement board for harm resulting from a	1064
breach of the member's fiduciary duty. The attorney general may	1065
recover damages or be granted injunctive relief, which shall	1066
include the enjoinment of specified activities and the removal of	1067
the member from the board. Any damages awarded shall be paid to	1068
the public employees retirement system.	1069

Sec. 145.27.  (A)(1) As used in this division, "personal	1070
history record" means information maintained by the public	1071
employees retirement board on an individual who is a member,	1072
former member, contributor, former contributor, retirant, or	1073
beneficiary that includes the address, telephone number, social	1074
security number, record of contributions, correspondence with the	1075
public employees retirement system, or other information the board	1076
determines to be confidential.	1077

(2) The records of the board shall be open to public	1078
inspection, except that the following shall be excluded, except	1079
with the written authorization of the individual concerned:	1080

(a) The individual's statement of previous service and other	1081
information as provided for in section 145.16 of the Revised Code;	1082

(b) The amount of a monthly allowance or benefit paid to the	1083
individual;	1084

(c) The individual's personal history record.

1085

(B) All medical reports and recommendations required by this	1086
chapter are privileged, except that copies of such medical reports	1087
or recommendations shall be made available to the personal	1088
physician, attorney, or authorized agent of the individual	1089
concerned upon written release from the individual or the	1090
individual's agent, or when necessary for the proper	1091
administration of the fund, to the board assigned physician.	1092

(C) Any person who is a member or contributor of the system	1093
shall be furnished with a statement of the amount to the credit of	1094
the individual's account upon written request. The board is not	1095
required to answer more than one such request of a person in any	1096
one year. The board may issue annual statements of accounts to	1097
members and contributors.	1098

(D) Notwithstanding the exceptions to public inspection in	1099
division (A)(2) of this section, the board may furnish the	1100
following information:	1101

(1) If a member, former member, contributor, former	1102
contributor, or retirant is subject to an order issued under	1103
section 2907.15 of the Revised Code or is convicted of or pleads	1104
guilty to a violation of section 2921.41 of the Revised Code, on	1105
written request of a prosecutor as defined in section 2935.01 of	1106
the Revised Code, the board shall furnish to the prosecutor the	1107
information requested from the individual's personal history	1108
record.	1109

(2) Pursuant to a court or administrative order issued	1110
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised	1111
Code, the board shall furnish to a court or child support	1112
enforcement agency the information required under that section.	1113

(3) At the written request of any person, the board shall	1114
provide to the person a list of the names and addresses of	1115
members, former members, contributors, former contributors,	1116
retirants, or beneficiaries. The costs of compiling, copying, and	1117
mailing the list shall be paid by such person.	1118

(4) Within fourteen days after receiving from the director of	1119
job and family services a list of the names and social security	1120
numbers of recipients of public assistance pursuant to section	1121
5101.181 of the Revised Code, the board shall inform the auditor	1122
of state of the name, current or most recent employer address, and	1123
social security number of each member whose name and social	1124
security number are the same as that of a person whose name or	1125
social security number was submitted by the director. The board	1126
and its employees shall, except for purposes of furnishing the	1127
auditor of state with information required by this section,	1128
preserve the confidentiality of recipients of public assistance in	1129
compliance with division (A) of section 5101.181 of the Revised	1130
Code.	1131

(5) The system shall comply with orders issued under section	1132
3105.87 of the Revised Code.	1133

On the written request of an alternate payee, as defined in	1134
section 3105.80 of the Revised Code, the system shall furnish to	1135
the alternate payee information on the amount and status of any	1136
amounts payable to the alternate payee under an order issued under	1137
section 3105.171 or 3105.65 of the Revised Code.	1138

(6) At the written request of any person, the board shall	1139
make available to the person copies of all documents, including	1140
resumes, in the board's possession regarding filling a vacancy of	1141
an employee member or retirant member of the board. The person who	1142
made the request shall pay the cost of compiling, copying, and	1143
mailing the documents.	1144

(E) A statement that contains information obtained from the	1145
system's records that is signed by the executive director or an	1146
officer of the system and to which the system's official seal is	1147
affixed, or copies of the system's records to which the signature	1148
and seal are attached, shall be received as true copies of the	1149
system's records in any court or before any officer of this state.	1150

Sec. 145.99. Whoever violates section 145.054 of the Revised	1151
Code shall be fined not more than one hundred dollars for each day	1152
of the violation.	1153

Fines imposed by the Ohio elections commission under this	1154
section shall be paid into the Ohio elections commission fund	1155
created under section 3513.10 of the Revised Code.	1156

Sec. 171.01. ThereAs used in this chapter, "state	1157
retirement systems" means the public employees retirement system,	1158
Ohio police and fire pension fund, state teachers retirement	1159
system, school employees retirement system, and state highway	1160
patrol retirement system.	1161

There is hereby created the Ohio retirement study council,	1162
consisting of fourteen members to. Members of the council shall be	1163
appointed as follows:	1164

(A) Three members of the senate, appointed by the president	1165
of the senate, not more than two of whom may be members of the	1166
same political party;	1167

(B) Three members of the house of representatives, appointed	1168
by the speaker of the house of representatives, not more than two	1169
of whom may be members of the same political party;	1170

(C) Two members, one appointed by the speaker of the house of	1171
representatives, the other appointed by the president of the	1172
senate. Each of these members shall be a former member of the	1173
general assembly who served at least one term on the council while	1174
a member of the general assembly. The members shall be appointed	1175
at the same time as the members appointed under division (B) of	1176
this section and shall serve until the thirty-first day of	1177
December of the following year.	1178

(D) Three members appointed by the governor, with the advice	1179
and consent of the senate, not more than two of whom shall be	1180
members of the same political party, one of whom shall represent	1181
the state and its employees; one of whom shall represent nonstate	1182
governments and their employees; and one of whom shall represent	1183
educational employers and their employees. Of these three members,	1184
at least one shall be a person with investment expertise. Terms of	1185
the existing members appointed by the governor shall not be	1186
affected. Terms of office of members appointed by the governor	1187
shall be for three years, commencing on the first day of July and	1188
ending on the thirtieth day of June. Each member appointed by the	1189
governor shall hold office from the date of appointment until the	1190
end of the term for which the appointment was made. Any member	1191
appointed by the governor to fill a vacancy occurring prior to the	1192
expiration of the term for which the member's predecessor was	1193
appointed shall hold office for the remainder of such term. Any	1194
member shall continue in office subsequent to the expiration date	1195
of the member's term until the member's successor takes office, or	1196
until a period of sixty days has elapsed, whichever occurs first.	1197

(D) Five ex officio members as follows: the executive	1198
director of the public employees retirement system, the executive	1199
director of the state teachers retirement system, the executive	1200
director of the school employees retirement system, the executive	1201
secretary of the Ohio police and fire pension fund, and the	1202
secretary of the state highway patrol retirement board, who shall	1203
be nonvoting members.	1204

A vacancy on the council shall be filled by the person	1205
qualified to make the original appointment for the unexpired term,	1206
in the same manner as the original appointment.	1207

The members of the council who are appointed from the	1208
membership of the senate and the house of representatives shall	1209
serve during their terms as members of the general assembly and	1210
until their successors are appointed and qualified,	1211
notwithstanding the adjournment of the general assembly of which	1212
they are members or the expiration of their terms as members of	1213
such general assembly.	1214

Sec. 171.03.  The Ohio retirement study council may:

1215

(A) Appoint a director to manage and direct the duties of the	1216
staff of the council. The director shall be a person who has had	1217
training and experience in areas related to the duties of the	1218
council.	1219

(B) Appoint such professional, technical, and clerical	1220
employees as are necessary, and employ or hire on a consulting	1221
basis such actuarial, legal, investment, or other technical	1222
services required for the performance of its duties;	1223

(C) Fix the compensation of the director and all other	1224
employees of the council. The employees of the council shall be	1225
members of the public employees retirement system.	1226

(D) Require the public employees retirement board, the state	1227
teachers retirement board, the school employees retirement board,	1228
the state highway patrol retirement system, the Ohio police and	1229
fire pension fund, and any agency or official of this state or its	1230
political subdivisions to provide it with any information	1231
necessary to carry out its duties;	1232

(E) Administer oaths and hold public hearings at such times	1233
and places within the state as may be necessary to accomplish the	1234
purposes and intent of Chapter 171. of the Revised Code;	1235

(F) Establish a uniform format for any report that the state	1236
retirement boards are required to submit to the council and	1237
regular reporting requirements;	1238

(G) Request that the auditor of state peform or contract for	1239
the performance of a financial or special audit of a state	1240
retirement system.	1241

Sec. 171.04.  The Ohio retirement study council shall:

1242

(A) Make an impartial review from time to time of all laws	1243
governing the administration and financing of the pension and	1244
retirement funds under Chapters 145., 146., 742., 3307., 3309.,	1245
and 5505. of the Revised Code and recommend to the general	1246
assembly any changes it may find desirable with respect to the	1247
allowances and benefits, sound financing of the cost of benefits,	1248
the prudent investment of funds, and the improvement of the	1249
language, structure, and organization of the laws;	1250

(B) Make an annual report to the governor and to the general	1251
assembly covering its evaluation and recommendations with respect	1252
to the operations of the state retirement systems and their funds;	1253

(C) Study all changes in the retirement laws proposed to the	1254
general assembly and report to the general assembly on their	1255
probable costs, actuarial implications, and desirability as a	1256
matter of public policy;	1257

(D) Review semiannually the policies, objectives, and	1258
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15,	1259
and 5505.06 of the Revised Code for the operation of the	1260
investment programs of the state retirement systems, including a	1261
review of asset allocation targets and ranges, risk factors, asset	1262
class benchmarks, time horizons, total return objectives, relative	1263
volatility, and performance evaluation guidelines. The council	1264
shall, not later than thirty days after completing a review,	1265
submit to the governor and the general assembly a report	1266
summarizing its findings.	1267

(E) Have prepared by an independent actuary, at least once	1268
every ten years, an actuarial review of the annual actuarial	1269
valuations and quinquennial actuarial investigations prepared	1270
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of	1271
the Revised Code, including a review of the actuarial assumptions	1272
and methods, the data underlying the valuations and	1273
investigations, and the adequacy of each system's employee and	1274
employer contribution rates to amortize its unfunded actuarial	1275
pension liability, if any, and to support the payment of benefits	1276
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the	1277
Revised Code. The council shall submit to the governor and the	1278
general assembly a report summarizing the review.	1279

(F) Have conducted by an independent auditor at least once	1280
every five years a fiduciary performance audit of each of the	1281
state retirement systems.	1282

All costs associated with an audit conducted pursuant to	1283
division (F) of this section shall be paid by the retirement	1284
system audited.	1285

(G) Review all proposed rules submitted to the council	1286
pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04	1287
of the Revised Code and submit any recommendations to the joint	1288
committee on agency rule review.	1289

Sec. 171.06. The attorney general is the legal adviser to the	1290
Ohio retirement study council.	1291

Sec. 171.50. The boards of the state retirement systems shall	1292
jointly develop a retirement board member education program and	1293
submit the program to the Ohio retirement study council.	1294

The boards shall jointly pay all costs associated with	1295
establishing and conducting the retirement board member education	1296
program.	1297

The retirement board member education program shall consist	1298
of an orientation component for newly elected and appointed	1299
members and a continuing education component for board members who	1300
have served for at least one year. The program shall incorporate	1301
into its curriculum each of the following topics: board member	1302
duties and responsibilities, retirement system member benefits and	1303
health care management, ethics, governance processes and	1304
procedures, actuarial soundness, investments, and any other	1305
subject matter the boards believe is reasonably related to the	1306
duties of a board member.	1307

All program sessions, classes, and other events shall be held	1308
in Ohio.	1309

Sec. 742.03.  (A) As used in this section and in sections	1310
742.04 and 742.05 of the Revised Code:	1311

(1) "Police officer" means a member of the fund who is or has	1312
been an employee of a police department and is not a police	1313
retirant.	1314

(2) "Firefighter" means a member of the fund who is or has	1315
been an employee of a fire department and is not a firefighter	1316
retirant.	1317

(3) "Firefighter retirant" means a member of the fund who is	1318
receiving an age and service or disability benefit as a result of	1319
service in a fire department or a surviving spouse of a deceased	1320
member who is receiving a benefit as a result of the deceased	1321
member's service in a fire department. "Firefighter retirant" does	1322
not include a member of the fund who is participating in the	1323
deferred retirement option plan established under section 742.43	1324
of the Revised Code.	1325

(4) "Police retirant" means a member of the fund who is	1326
receiving an age and service or disability benefit as a result of	1327
service in a police department or a surviving spouse of a deceased	1328
member who is receiving a benefit as a result of the deceased	1329
member's service in a police department. "Police retirant" does	1330
not include a member of the fund who is participating in the	1331
deferred retirement option plan established under section 742.43	1332
of the Revised Code.	1333

(B) The administration, control, and management of the Ohio	1334
police and fire pension fund, created under section 742.02 of the	1335
Revised Code, is vested in a board of trustees of the Ohio police	1336
and fire pension fund, which shall consist of nine members as	1337
follows:	1338

(1) The attorney generaldirector of budget and management;

1339

(2) The auditor of state;

1340

(3) The fiscal officer of a municipal corporation who shall	1341
be appointed by the governor. This member's term shall be for	1342
three years, commencing on the fourth day of June and ending on	1343
the third day of June. The fiscal officer member shall hold office	1344
from the date of appointment until the end of the term for which	1345
appointed. Any fiscal officer member appointed to fill a vacancy	1346
occurring prior to the expiration of the term for which the fiscal	1347
officer member's predecessor was appointed shall hold office for	1348
the remainder of such term. Any fiscal officer member shall	1349
continue in office subsequent to the expiration date of the fiscal	1350
officer member's term until such member's successor takes office,	1351
or until a period of sixty days has elapsed, whichever occurs	1352
first.	1353

(4) Four members known as employee members.

1354

Two employee members shall be police officers elected by	1355
police officers. Two employee members shall be firefighters	1356
elected by firefighters. Employee members of the board shall be	1357
elected for terms of four years as provided by section 742.04 of	1358
the Revised Code.	1359

(5) One member known as the firefighter retirant member, who	1360
shall be a resident of this state elected by the firefighter	1361
retirants. The firefighter retirant member shall be elected for a	1362
term of four years as provided by section 742.04 of the Revised	1363
Code.	1364

(6) One member known as the police retirant member, who shall	1365
be a resident of this state elected by the police retirants. The	1366
police retirant member shall be elected for a term of four years	1367
as provided by section 742.04 of the Revised Code.	1368

(C) No employee member of the board who retires while a	1369
member of the board shall be eligible to become a retirant member	1370
for three years after the date of the member's retirement.	1371

Sec. 742.031. Each newly elected member of the board of	1372
trustees of the Ohio police and fire pension fund and each	1373
individual appointed to fill a vacancy on the board, prior to	1374
commencing service as a board member, shall complete the	1375
orientation program component of the retirement board member	1376
education program established under section 171.50 of the Revised	1377
Code.	1378

Each member of the board who has served a year or longer as a	1379
board member shall, not less than twice each year, attend one or	1380
more programs that are part of the continuing education component	1381
of the retirement board member education program established under	1382
section 171.50 of the Revised Code.	1383

Sec. 742.04.  As used in this section, "county" means the	1384
county of residence of an individual who signs a nominating	1385
petition.	1386

ElectionThe board of trustees of the Ohio police and fire	1387
pension fund shall administer the election of the employee	1388
members, firefighter retirant member, and police retirant member	1389
of the board of trustees of the Ohio police and fire pension fund	1390
shall be under the supervision and direction of the boardin	1391
accordance with rules adopted under section 111.30 of the Revised	1392
Code.	1393

Nominating petitions for candidates for an employee member of	1394
the board elected by police officers shall be signed by at least	1395
one hundred police officers, with at least twenty signers from	1396
each of at least five counties of the state, and certified under	1397
section 111.30 of the Revised Code.	1398

Nominating petitions for candidates for an employee member of	1399
the board elected by firefighters shall be signed by at least one	1400
hundred firefighters, with at least twenty signers from each of at	1401
least five counties of the state, and certified under section	1402
111.30 of the Revised Code.	1403

Nominating petitions for candidates for an employee member of	1404
the board shall be filed in the office of the board not later than	1405
four p.m. on the first Monday in April preceding the date of the	1406
expiration of the term of the employee member of the board whose	1407
successor is to be elected.	1408

The board shall determine the sufficiency of the nominating	1409
petitions filed with it and the board's decision shall be final.	1410

The board shall cause ballots to be prepared for the election	1411
of employee members of the board which shall contain the names of	1412
all candidates for whom propercertified nominating petitions have	1413
been filed with the board.	1414

A police officer or firefighter is eligible to vote in an	1415
election if the police officer or firefighter is a member of the	1416
fund on the first Monday in March preceding the date of the	1417
expiration of the term of the employee member of the board whose	1418
successor is to be elected. The board shall determine whether a	1419
member of the fund is eligible to vote at an election and its	1420
decision shall be final.	1421

On or before the first Monday in May preceding the date of	1422
the expiration of the term of the employee member of the board	1423
whose successor is to be elected, the board shall cause ballots to	1424
be sent to each member of the fund who is eligible to vote at such	1425
election to the address of such member as shown on the records of	1426
the board.	1427

Ballots shall be returned to the board not later than the	1428
third Tuesday in May following the date that the ballots were	1429
mailed to the members of the fund eligible to vote at such	1430
election.	1431

The board shall cause the ballots to be counted and shall	1432
declareOn certification of the election results under section	1433
111.30 of the Revised Code, the person receiving the highest	1434
number of votes shall be elected as an employee member of the	1435
board for a term of four years beginning on the first Monday in	1436
June following such election.	1437

Nominating petitions for candidates for the police retirant	1438
member of the board shall be signed by at least fifty police	1439
retirants, with at least ten signers from at least five counties	1440
of the state, and certified under section 111.30 of the Revised	1441
Code.	1442

Nominating petitions for candidates for the firefighter	1443
retirant member of the board shall be signed by at least fifty	1444
firefighter retirants, with at least ten signers from at least	1445
five counties of the state, and certified under section 111.30 of	1446
the Revised Code.	1447

Nominating petitions for candidates for the retirant members	1448
of the board shall be filed in the office of the board not later	1449
than four p.m. on the first Monday in April preceding the date of	1450
the expiration of the term of the retirant member of the board	1451
whose successor is to be elected.	1452

The board shall determine the sufficiency of the nominating	1453
petitions filed with it, and the board's decision shall be final.	1454

The board shall cause ballots to be prepared for the election	1455
of these board members which shall contain the names of all	1456
candidates for whom propercertified nominating petitions have	1457
been filed with the board.	1458

A retirant is eligible to vote in an election if the retirant	1459
is a police retirant or firefighter retirant on the first Monday	1460
in April preceding the date of the expiration of the term of the	1461
retirant member of the board whose successor is to be elected. The	1462
board shall determine whether a police retirant or firefighter	1463
retirant is eligible to vote at an election and its decision shall	1464
be final.	1465

On or before the first Monday in May preceding the date of	1466
the expiration of the term of a retirant member of the board whose	1467
successor is to be elected, the board shall cause ballots to be	1468
sent to each person who is eligible to vote in the election to the	1469
address of the person as shown on the records of the board.	1470

Ballots shall be returned to the board not later than the	1471
third Tuesday in May following the date that the ballots were	1472
mailed to the persons eligible to vote in the election.	1473

The board shall cause the ballots to be counted and shall	1474
declareOn certification of the election results under section	1475
111.30 of the Revised Code, the person receiving the highest	1476
number of votes shall be elected as the police retirant member or	1477
the firefighter retirant member of the board for a term of four	1478
years beginning on the first Monday in June following the	1479
election.	1480

Sec. 742.042. (A) As used in this section:

1481

(1) "Campaign committee" means a candidate or a combination	1482
of two or more persons authorized by a candidate to receive	1483
contributions and in-kind contributions and make expenditures on	1484
behalf of the candidate.	1485

(2) "Candidate" means an individual who has been nominated	1486
pursuant to section 742.04 of the Revised Code for election to the	1487
board of trustees of the Ohio police and fire pension fund.	1488

(3) "Contribution" means a loan, gift, deposit, forgiveness	1489
of indebtedness, donation, advance, payment, transfer of funds or	1490
transfer of anything of value including a transfer of funds from	1491
an inter vivos or testamentary trust or decedent's estate, and the	1492
payment by any person other than the person to whom the services	1493
are rendered for the personal services of another person, which	1494
contribution is made, received, or used for the purpose of	1495
influencing the results of an election to the board of trustees of	1496
the Ohio police and fire pension fund under section 742.04 of the	1497
Revised Code. "Contribution" does not include:	1498

(a) Services provided without compensation by individuals	1499
volunteering a portion or all of their time on behalf of a person;	1500

(b) Ordinary home hospitality;

1501

(c) The personal expenses of a volunteer paid for by that	1502
volunteer campaign worker.	1503

(4) "Election day" means the following, as appropriate to the	1504
situation:	1505

(a) The third Tuesday in May of a year for which section	1506
742.04 of the Revised Code specifies that an election for a member	1507
of the board of trustees of the Ohio police and fire pension fund	1508
be held;	1509

(b) If, pursuant to section 742.041 of the Revised Code, no	1510
election is held, the third Tuesday in May of a year that the	1511
election would have been held if not for section 742.041 of the	1512
Revised Code.	1513

(5) "Expenditure" means the disbursement or use of a	1514
contribution for the purpose of influencing the results of an	1515
election to the board of trustees of the Ohio police and fire	1516
pension fund under section 742.04 of the Revised Code.	1517

(6) "In-kind contribution" means anything of value other than	1518
money that is used to influence the results of an election to the	1519
board of trustees of the Ohio police and fire pension fund under	1520
section 742.04 of the Revised Code or is transferred to or used in	1521
support of or in opposition to a candidate and that is made with	1522
the consent of, in coordination, cooperation, or consultation	1523
with, or at the request or suggestion of the benefited candidate.	1524
The financing of the dissemination, distribution, or	1525
republication, in whole or part, of any broadcast or of any	1526
written, graphic, or other form of campaign materials prepared by	1527
the candidate, the candidate's campaign committee, or their	1528
authorized agents is an in-kind contribution to the candidate and	1529
an expenditure by the candidate.	1530

(7) "Personal expenses" includes ordinary expenses for	1531
accommodations, clothing, food, personal motor vehicle or	1532
airplane, and home telephone.	1533

(B) Each candidate who, or whose campaign committee, receives	1534
a contribution or in-kind contribution or makes an expenditure in	1535
connection with the candidate's efforts to be elected to the board	1536
of trustees of the Ohio police and fire pension fund shall file	1537
with the secretary of state two complete, accurate, and itemized	1538
statements setting forth in detail the contributions, in-kind	1539
contributions, and expenditures. The statements shall be filed	1540
regardless of whether, pursuant to section 742.041 of the Revised	1541
Code, no election is held. The statements shall be made on a form	1542
prescribed under section 111.30 of the Revised Code. The first	1543
statement shall be filed not later than four p.m. on the day that	1544
is twelve days before election day. The second statement shall be	1545
filed not sooner than the day that is eight days after election	1546
day and not later than thirty-eight days after election day. The	1547
first statement shall reflect contributions and in-kind	1548
contributions received and expenditures made to the close of	1549
business on the twentieth day before election day. The second	1550
statement shall reflect contributions and in-kind contributions	1551
received and expenditures made during the period beginning on the	1552
nineteenth day before election day and ending on the close of	1553
business on the seventh day after election day.	1554

Sec.  742.043.  No person shall knowingly fail to file a	1555
complete and accurate statement in accordance with section 742.042	1556
of the Revised Code.	1557

Sec. 742.044.  The secretary of state, or any person acting	1558
on personal knowledge and subject to the penalties of perjury, may	1559
file a complaint with the Ohio elections commission alleging a	1560
violation of section 742.043 of the Revised Code. The complaint	1561
shall be made on a form prescribed and provided by the commission.	1562

On receipt of a complaint under this section, the commission	1563
shall hold a hearing open to the public to determine whether the	1564
violation alleged in the complaint has occurred. The commission	1565
may administer oaths and issue subpoenas to any person in the	1566
state compelling the attendance of witnesses and the production of	1567
relevant papers, books, accounts, and reports. On the refusal of	1568
any person to obey a subpoena or to be sworn or to answer as a	1569
witness, the commission may apply to the court of common pleas of	1570
Franklin county under section 2705.03 of the Revised Code. The	1571
court shall hold proceedings in accordance with Chapter 2705. of	1572
the Revised Code.	1573

The commission shall provide the person accused of the	1574
violation at least seven days prior notice of the time, date, and	1575
place of the hearing. The accused may be represented by an	1576
attorney and shall have an opportunity to present evidence, call	1577
witnesses, and cross-examine witnesses.	1578

At the hearing, the commission shall determine whether the	1579
violation alleged in the complaint has occurred. If the commission	1580
determines that the violation has occurred, the commission shall	1581
either impose a fine under section 742.99 of the Revised Code or	1582
enter a finding that good cause has been shown not to impose the	1583
fine.	1584

Sec. 742.046. A member of the board of trustees of the police	1585
and fire pension fund who is charged with committing a felony, a	1586
theft offense as defined in section 2913.01 of the Revised Code,	1587
or a violation of section 102.02, 102.03, 102.04, 102.07, 2921.02,	1588
2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44	1589
of the Revised Code shall be suspended from participation on the	1590
board for the period during which the charges are pending. If the	1591
charges are dismissed, the member is found not guilty, or the	1592
charges are otherwise resolved in a manner not resulting in the	1593
member being convicted of or pleading guilty to an offense of that	1594
nature, the suspension shall end, and the member may participate	1595
on the board. If the member pleads guilty to or is convicted of	1596
the offense, the position of the member on the board shall be	1597
deemed vacant. A person who has pleaded guilty to or been	1598
convicted of an offense of that nature is ineligible for election	1599
to the board of trustees of the police and fire pension fund.	1600

The Ohio retirement study council may hold a hearing to	1601
determine whether to remove a member of the board of trustees of	1602
the police and fire pension fund who has been suspended pursuant	1603
to this section. If it decides to hold a hearing, the council	1604
shall provide the suspended board member at least seven days prior	1605
notice of the time, date, and place of the hearing. The suspended	1606
board member may be represented by an attorney. At the hearing the	1607
suspended board member, or the suspended board member's attorney,	1608
shall have an opportunity to present evidence, call witnesses, and	1609
cross-examine witnesses. The hearing shall be open to the public.	1610
At the conclusion of the hearing, if the voting members of the	1611
council unanimously vote to remove the suspended board member, the	1612
suspended board member shall be removed from the board, and the	1613
position of the member shall be deemed vacant.	1614

Sec. 742.05.  Any vacancy occurring in the term of a member	1615
of the board of trustees of the Ohio police and fire pension fund	1616
who is the fiscal officer of a municipal corporation shall be	1617
filled by appointment by the governor for the unexpired term of	1618
such member.	1619

AnyIf a vacancy occurringoccurs in the term of an employee	1620
member of the board shall be filled by, the remaining employee	1621
members and the retirant members of the board for the unexpired	1622
term of suchshall elect a successor employee member. On	1623
certification of the election results under section 111.30 of the	1624
Revised Code, the successor employee member shall hold office for	1625
the remainder of the predecessor employee member's term.	1626

AnyIf a vacancy occurringoccurs in the term of a retirant	1627
member of the board shall be filled by, the employee members and	1628
the remaining retirant member of the board for the unexpired term	1629
shall elect a successor retirant member. On certification of the	1630
election results under section 111.30 of the Revised Code, the	1631
successor retirant member shall hold office for the remainder of	1632
the predecessor retirant member's term.	1633

Elections under this section to fill a vacancy on the board	1634
shall be conducted under the supervision of the secretary of state	1635
pursuant to section 111.30 of the Revised Code.	1636

If a member of the board who is the fiscal officer of a	1637
municipal corporation ceases to be a fiscal officer of a municipal	1638
corporation, a vacancy shall exist.	1639

If an employee member of the board ceases to be a member of	1640
the fund, a vacancy shall exist.	1641

If as a result of changed circumstances a retirant member no	1642
longer qualifies for membership on the board as a retirant member,	1643
a vacancy shall exist.	1644

Any employee or retirant member of the board or member of the	1645
board who is the fiscal officer of a municipal corporation who	1646
fails to attend three consecutive meetings of the board, without	1647
valid excuse, shall be considered as having resigned from the	1648
board and the board shall declare the member's office vacated and	1649
as of the date of the adoption of a proper resolution a vacancy	1650
shall exist.	1651

Sec. 742.10.  The board of trustees of the Ohio police and	1652
fire pension fund may sue and be sued, plead and be impleaded,	1653
contract and be contracted with, employ and fix the compensation	1654
of employees, and adopt rules for the proper administration and	1655
management of the fund.	1656

Effective ninety days after the effective date of this	1657
amendment, the board of trustees may not employ a state retirement	1658
system investment officer, as defined in section 1707.01 of the	1659
Revised Code, who does not hold a valid state retirement system	1660
investment officer license issued by the division of securities in	1661
the department of commerce.	1662

If the Ohio retirement study council establishes a uniform	1663
format for any report the board is required to submit to the	1664
council, the board shall submit the report in that format.	1665

The attorney general shall prescribe procedures for the	1666
adoption of rules authorized under this chapter, consistent with	1667
the provisions of section 111.15 of the Revised Code under which	1668
all rules shall be filed in order to be effective. Such procedures	1669
shall establish methods by which notice of proposed rules is given	1670
to interested parties and rules adopted by the board published and	1671
otherwise made available. When it files a rule with the joint	1672
committee on agency rule review pursuant to section 111.15 of the	1673
Revised Code, the board shall submit to the Ohio retirement study	1674
council a copy of the full text of the rule, and if applicable, a	1675
copy of the rule summary and fiscal analysis required by division	1676
(B) of section 127.18 of the Revised Code.	1677

All rules adopted pursuant to this chapter, prior to August	1678
20, 1976, shall be published and made available to interested	1679
parties by January 1, 1977.	1680

Sec. 742.102.  The board of trustees of the police and fire	1681
pension fund shall do all of the following:	1682

(A) In consultation with the Ohio ethics commission, review	1683
any existing policy regarding the travel and payment of travel	1684
expenses of members of the board of trustees and employees of the	1685
fund and adopt rules in accordance with section 742.10 of the	1686
Revised Code establishing a new or revised policy regarding travel	1687
and payment of travel expenses;	1688

(B) Review any existing policy regarding compensation and	1689
bonuses paid to employees of the fund and adopt rules in	1690
accordance with section 742.10 of the Revised Code establishing a	1691
new or revised policy regarding employee compensation and bonuses;	1692

(C) Provide copies of the rules adopted under this section to	1693
each member of the Ohio retirement study council.	1694

Sec. 742.103. The board of trustees of the police and fire	1695
pension fund periodically shall provide ethics training to members	1696
and employees of the board. The training shall include training	1697
regarding the requirements and prohibitions of Chapter 102. of the	1698
Revised Code and sections 2921.42 and 2921.43 of the Revised Code	1699
and any other training the board considers appropriate.	1700

The board shall establish a procedure to ensure that each	1701
employee of the board is informed of the procedure for filing a	1702
complaint alleging violation of Chapter 102. of the Revised Code	1703
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	1704
ethics commission or the appropriate prosecuting attorney.	1705

Sec. 742.114. The attorney general may maintain a civil	1706
action under section 109.98 of the Revised Code against a member	1707
of the board of trustees of the Ohio police and fire pension fund	1708
for harm resulting from a breach of the member's fiduciary duty.	1709

Sec. 742.41.  (A) As used in this section:

1710

(1) "Other system retirant" has the same meaning as in	1711
section 742.26 of the Revised Code.	1712

(2) "Personal history record" includes a member's, former	1713
member's, or other system retirant's name, address, telephone	1714
number, social security number, record of contributions,	1715
correspondence with the Ohio police and fire pension fund, status	1716
of any application for benefits, and any other information deemed	1717
confidential by the trustees of the fund.	1718

(B) The treasurer of state shall furnish annually to the	1719
board of trustees of the fund a sworn statement of the amount of	1720
the funds in the treasurer of state's custody belonging to the	1721
Ohio police and fire pension fund. The records of the fund shall	1722
be open for public inspection except for the following, which	1723
shall be excluded, except with the written authorization of the	1724
individual concerned:	1725

(1) The individual's personal history record;

1726

(2) Any information identifying, by name and address, the	1727
amount of a monthly allowance or benefit paid to the individual.	1728

(C) All medical reports and recommendations required are	1729
privileged, except that copies of such medical reports or	1730
recommendations shall be made available to the personal physician,	1731
attorney, or authorized agent of the individual concerned upon	1732
written release received from the individual or the individual's	1733
agent or, when necessary for the proper administration of the	1734
fund, to the board-assigned physician.	1735

(D) Any person who is a member of the fund or an other system	1736
retirant shall be furnished with a statement of the amount to the	1737
credit of the person's individual account upon the person's	1738
written request. The fund need not answer more than one such	1739
request of a person in any one year.	1740

(E) Notwithstanding the exceptions to public inspection in	1741
division (B) of this section, the fund may furnish the following	1742
information:	1743

(1) If a member, former member, or other system retirant is	1744
subject to an order issued under section 2907.15 of the Revised	1745
Code or is convicted of or pleads guilty to a violation of section	1746
2921.41 of the Revised Code, on written request of a prosecutor as	1747
defined in section 2935.01 of the Revised Code, the fund shall	1748
furnish to the prosecutor the information requested from the	1749
individual's personal history record.	1750

(2) Pursuant to a court order issued pursuant to Chapter	1751
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall	1752
furnish to a court or child support enforcement agency the	1753
information required under that section.	1754

(3) At the request of any organization or association of	1755
members of the fund, the fund shall provide a list of the names	1756
and addresses of members of the fund and other system retirants.	1757
The fund shall comply with the request of such organization or	1758
association at least once a year and may impose a reasonable	1759
charge for the list.	1760

(4) Within fourteen days after receiving from the director of	1761
job and family services a list of the names and social security	1762
numbers of recipients of public assistance pursuant to section	1763
5101.181 of the Revised Code, the fund shall inform the auditor of	1764
state of the name, current or most recent employer address, and	1765
social security number of each member or other system retirant	1766
whose name and social security number are the same as that of a	1767
person whose name or social security number was submitted by the	1768
director. The fund and its employees shall, except for purposes of	1769
furnishing the auditor of state with information required by this	1770
section, preserve the confidentiality of recipients of public	1771
assistance in compliance with division (A) of section 5101.181 of	1772
the Revised Code.	1773

(5) The fund shall comply with orders issued under section	1774
3105.87 of the Revised Code.	1775

On the written request of an alternate payee, as defined in	1776
section 3105.80 of the Revised Code, the fund shall furnish to the	1777
alternate payee information on the amount and status of any	1778
amounts payable to the alternate payee under an order issued under	1779
section 3105.171 or 3105.65 of the Revised Code.	1780

(6) At the written request of any person, the fund shall make	1781
available to the person copies of all documents, including	1782
resumes, in the fund's possession regarding filling a vacancy of a	1783
police officer employee member, firefighter employee member,	1784
police retirant member, or firefighter retirant member of the	1785
board of trustees. The person who made the request shall pay the	1786
cost of compiling, copying, and mailing the documents.	1787

(F) A statement that contains information obtained from the	1788
fund's records that is signed by the secretary of the board of	1789
trustees of the Ohio police and fire pension fund and to which the	1790
board's official seal is affixed, or copies of the fund's records	1791
to which the signature and seal are attached, shall be received as	1792
true copies of the fund's records in any court or before any	1793
officer of this state.	1794

Sec. 742.99. Whoever violates section 742.043 of the Revised	1795
Code shall be fined not more than one hundred dollars for each day	1796
of the violation.	1797

Fines imposed by the Ohio elections commission under this	1798
section shall be paid into the Ohio elections commission fund	1799
created under section 3513.10 of the Revised Code.	1800

Sec. 1707.01.  As used in this chapter:

1801

(A) Whenever the context requires it, "division" or "division	1802
of securities" may be read as "director of commerce" or as	1803
"commissioner of securities."	1804

(B) "Security" means any certificate or instrument that	1805
represents title to or interest in, or is secured by any lien or	1806
charge upon, the capital, assets, profits, property, or credit of	1807
any person or of any public or governmental body, subdivision, or	1808
agency. It includes shares of stock, certificates for shares of	1809
stock, membership interests in limited liability companies,	1810
voting-trust certificates, warrants and options to purchase	1811
securities, subscription rights, interim receipts, interim	1812
certificates, promissory notes, all forms of commercial paper,	1813
evidences of indebtedness, bonds, debentures, land trust	1814
certificates, fee certificates, leasehold certificates, syndicate	1815
certificates, endowment certificates, certificates or written	1816
instruments in or under profit-sharing or participation agreements	1817
or in or under oil, gas, or mining leases, or certificates or	1818
written instruments of any interest in or under the same, receipts	1819
evidencing preorganization or reorganization subscriptions,	1820
preorganization certificates, reorganization certificates,	1821
certificates evidencing an interest in any trust or pretended	1822
trust, any investment contract, any life settlement interest, any	1823
instrument evidencing a promise or an agreement to pay money,	1824
warehouse receipts for intoxicating liquor, and the currency of	1825
any government other than those of the United States and Canada,	1826
but sections 1707.01 to 1707.45 of the Revised Code do not apply	1827
to the sale of real estate.	1828

(C)(1) "Sale" has the full meaning of "sale" as applied by or	1829
accepted in courts of law or equity, and includes every	1830
disposition, or attempt to dispose, of a security or of an	1831
interest in a security. "Sale" also includes a contract to sell,	1832
an exchange, an attempt to sell, an option of sale, a solicitation	1833
of a sale, a solicitation of an offer to buy, a subscription, or	1834
an offer to sell, directly or indirectly, by agent, circular,	1835
pamphlet, advertisement, or otherwise.	1836

(2) "Sell" means any act by which a sale is made.

1837

(3) The use of advertisements, circulars, or pamphlets in	1838
connection with the sale of securities in this state exclusively	1839
to the purchasers specified in division (D) of section 1707.03 of	1840
the Revised Code is not a sale when the advertisements, circulars,	1841
and pamphlets describing and offering those securities bear a	1842
readily legible legend in substance as follows: "This offer is	1843
made on behalf of dealers licensed under sections 1707.01 to	1844
1707.45 of the Revised Code, and is confined in this state	1845
exclusively to institutional investors and licensed dealers."	1846

(4) The offering of securities by any person in conjunction	1847
with a licensed dealer by use of advertisement, circular, or	1848
pamphlet is not a sale if that person does not otherwise attempt	1849
to sell securities in this state.	1850

(5) Any security given with, or as a bonus on account of, any	1851
purchase of securities is conclusively presumed to constitute a	1852
part of the subject of that purchase and has been "sold."	1853

(6) "Sale" by an owner, pledgee, or mortgagee, or by a person	1854
acting in a representative capacity, includes sale on behalf of	1855
such party by an agent, including a licensed dealer or	1856
salesperson.	1857

(D) "Person," except as otherwise provided in this chapter,	1858
means a natural person, firm, partnership, limited partnership,	1859
partnership association, syndicate, joint-stock company,	1860
unincorporated association, trust or trustee except where the	1861
trust was created or the trustee designated by law or judicial	1862
authority or by a will, and a corporation or limited liability	1863
company organized under the laws of any state, any foreign	1864
government, or any political subdivision of a state or foreign	1865
government.	1866

(E)(1) "Dealer," except as otherwise provided in this	1867
chapter, means every person, other than a salesperson, who engages	1868
or professes to engage, in this state, for either all or part of	1869
the person's time, directly or indirectly, either in the business	1870
of the sale of securities for the person's own account, or in the	1871
business of the purchase or sale of securities for the account of	1872
others in the reasonable expectation of receiving a commission,	1873
fee, or other remuneration as a result of engaging in the purchase	1874
and sale of securities. "Dealer" does not mean any of the	1875
following:	1876

(a) Any issuer, including any officer, director, employee, or	1877
trustee of, or member or manager of, or partner in, or any general	1878
partner of, any issuer, that sells, offers for sale, or does any	1879
act in furtherance of the sale of a security that represents an	1880
economic interest in that issuer, provided no commission, fee, or	1881
other similar remuneration is paid to or received by the issuer	1882
for the sale;	1883

(b) Any licensed attorney, public accountant, or firm of such	1884
attorneys or accountants, whose activities are incidental to the	1885
practice of the attorney's, accountant's, or firm's profession;	1886

(c) Any person that, for the account of others, engages in	1887
the purchase or sale of securities that are issued and outstanding	1888
before such purchase and sale, if a majority or more of the equity	1889
interest of an issuer is sold in that transaction, and if, in the	1890
case of a corporation, the securities sold in that transaction	1891
represent a majority or more of the voting power of the	1892
corporation in the election of directors;	1893

(d) Any person that brings an issuer together with a	1894
potential investor and whose compensation is not directly or	1895
indirectly based on the sale of any securities by the issuer to	1896
the investor;	1897

(e) Any bank;

1898

(f) Any person that the division of securities by rule	1899
exempts from the definition of "dealer" under division (E)(1) of	1900
this section.	1901

(2) "Licensed dealer" means a dealer licensed under this	1902
chapter.	1903

(F)(1) "Salesman" or "salesperson" means every natural	1904
person, other than a dealer, who is employed, authorized, or	1905
appointed by a dealer to sell securities within this state.	1906

(2) The general partners of a partnership, and the executive	1907
officers of a corporation or unincorporated association, licensed	1908
as a dealer are not salespersons within the meaning of this	1909
definition, nor are such clerical or other employees of an issuer	1910
or dealer as are employed for work to which the sale of securities	1911
is secondary and incidental; but the division of securities may	1912
require a license from any such partner, executive officer, or	1913
employee if it determines that protection of the public	1914
necessitates the licensing.	1915

(3) "Licensed salesperson" means a salesperson licensed under	1916
this chapter.	1917

(G) "Issuer" means every person who has issued, proposes to	1918
issue, or issues any security.	1919

(H) "Director" means each director or trustee of a	1920
corporation, each trustee of a trust, each general partner of a	1921
partnership, except a partnership association, each manager of a	1922
partnership association, and any person vested with managerial or	1923
directory power over an issuer not having a board of directors or	1924
trustees.	1925

(I) "Incorporator" means any incorporator of a corporation	1926
and any organizer of, or any person participating, other than in a	1927
representative or professional capacity, in the organization of an	1928
unincorporated issuer.	1929

(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent	1930
practices," or "fraudulent transactions" means anything recognized	1931
on or after July 22, 1929, as such in courts of law or equity; any	1932
device, scheme, or artifice to defraud or to obtain money or	1933
property by means of any false pretense, representation, or	1934
promise; any fictitious or pretended purchase or sale of	1935
securities; and any act, practice, transaction, or course of	1936
business relating to the purchase or sale of securities that is	1937
fraudulent or that has operated or would operate as a fraud upon	1938
the seller or purchaser.	1939

(K) Except as otherwise specifically provided, whenever any	1940
classification or computation is based upon "par value," as	1941
applied to securities without par value, the average of the	1942
aggregate consideration received or to be received by the issuer	1943
for each class of those securities shall be used as the basis for	1944
that classification or computation.	1945

(L)(1) "Intangible property" means patents, copyrights,	1946
secret processes, formulas, services, good will, promotion and	1947
organization fees and expenses, trademarks, trade brands, trade	1948
names, licenses, franchises, any other assets treated as	1949
intangible according to generally accepted accounting principles,	1950
and securities, accounts receivable, or contract rights having no	1951
readily determinable value.	1952

(2) "Tangible property" means all property other than	1953
intangible property and includes securities, accounts receivable,	1954
and contract rights, when the securities, accounts receivable, or	1955
contract rights have a readily determinable value.	1956

(M) "Public utilities" means those utilities defined in	1957
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised	1958
Code; in the case of a foreign corporation, it means those	1959
utilities defined as public utilities by the laws of its domicile;	1960
and in the case of any other foreign issuer, it means those	1961
utilities defined as public utilities by the laws of the situs of	1962
its principal place of business. The term always includes	1963
railroads whether or not they are so defined as public utilities.	1964

(N) "State" means any state of the United States, any	1965
territory or possession of the United States, the District of	1966
Columbia, and any province of Canada.	1967

(O) "Bank" means any bank, trust company, savings and loan	1968
association, savings bank, or credit union that is incorporated or	1969
organized under the laws of the United States, any state of the	1970
United States, Canada, or any province of Canada and that is	1971
subject to regulation or supervision by that country, state, or	1972
province.	1973

(P) "Include," when used in a definition, does not exclude	1974
other things or persons otherwise within the meaning of the term	1975
defined.	1976

(Q)(1) "Registration by description" means that the	1977
requirements of section 1707.08 of the Revised Code have been	1978
complied with.	1979

(2) "Registration by qualification" means that the	1980
requirements of sections 1707.09 and 1707.11 of the Revised Code	1981
have been complied with.	1982

(3) "Registration by coordination" means that there has been	1983
compliance with section 1707.091 of the Revised Code. Reference in	1984
this chapter to registration by qualification also shall be deemed	1985
to include registration by coordination unless the context	1986
otherwise indicates.	1987

(R) "Intoxicating liquor" includes all liquids and compounds	1988
that contain more than three and two-tenths per cent of alcohol by	1989
weight and are fit for use for beverage purposes.	1990

(S) "Institutional investor" means any corporation, bank,	1991
insurance company, pension fund or pension fund trust, employees'	1992
profit-sharing fund or employees' profit-sharing trust, any	1993
association engaged, as a substantial part of its business or	1994
operations, in purchasing or holding securities, or any trust in	1995
respect of which a bank is trustee or cotrustee. "Institutional	1996
investor" does not include any business entity formed for the	1997
primary purpose of evading sections 1707.01 to 1707.45 of the	1998
Revised Code.	1999

(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a,	2000
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a,	2001
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1,	2002
"Investment Advisers Act of 1940," 54 Stat. 847, 15 U.S.C. 80b,	2003
and "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C. 80a	2004
mean the federal statutes of those names as amended before or	2005
after March 18, 1999.	2006

(U) "Securities and exchange commission" means the securities	2007
and exchange commission established by the Securities Exchange Act	2008
of 1934.	2009

(V)(1) "Control bid" means the purchase of or offer to	2010
purchase any equity security of a subject company from a resident	2011
of this state if either of the following applies:	2012

(a) After the purchase of that security, the offeror would be	2013
directly or indirectly the beneficial owner of more than ten per	2014
cent of any class of the issued and outstanding equity securities	2015
of the issuer.	2016

(b) The offeror is the subject company, there is a pending	2017
control bid by a person other than the issuer, and the number of	2018
the issued and outstanding shares of the subject company would be	2019
reduced by more than ten per cent.	2020

(2) For purposes of division (V)(1) of this section, "control	2021
bid" does not include any of the following:	2022

(a) A bid made by a dealer for the dealer's own account in	2023
the ordinary course of business of buying and selling securities;	2024

(b) An offer to acquire any equity security solely in	2025
exchange for any other security, or the acquisition of any equity	2026
security pursuant to an offer, for the sole account of the	2027
offeror, in good faith and not for the purpose of avoiding the	2028
provisions of this chapter, and not involving any public offering	2029
of the other security within the meaning of Section 4 of Title I	2030
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),	2031
as amended;	2032

(c) Any other offer to acquire any equity security, or the	2033
acquisition of any equity security pursuant to an offer, for the	2034
sole account of the offeror, from not more than fifty persons, in	2035
good faith and not for the purpose of avoiding the provisions of	2036
this chapter.	2037

(W) "Offeror" means a person who makes, or in any way	2038
participates or aids in making, a control bid and includes persons	2039
acting jointly or in concert, or who intend to exercise jointly or	2040
in concert any voting rights attached to the securities for which	2041
the control bid is made and also includes any subject company	2042
making a control bid for its own securities.	2043

(X)(1) "Investment adviser" means any person who, for	2044
compensation, engages in the business of advising others, either	2045
directly or through publications or writings, as to the value of	2046
securities or as to the advisability of investing in, purchasing,	2047
or selling securities, or who, for compensation and as a part of	2048
regular business, issues or promulgates analyses or reports	2049
concerning securities.	2050

(2) "Investment adviser" does not mean any of the following:

2051

(a) Any attorney, accountant, engineer, or teacher, whose	2052
performance of investment advisory services described in division	2053
(X)(1) of this section is solely incidental to the practice of the	2054
attorney's, accountant's, engineer's, or teacher's profession;	2055

(b) A publisher of any bona fide newspaper, news magazine, or	2056
business or financial publication of general and regular	2057
circulation;	2058

(c) A person who acts solely as an investment adviser	2059
representative;	2060

(d) A bank holding company, as defined in the "Bank Holding	2061
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an	2062
investment company;	2063

(e) A bank, or any receiver, conservator, or other	2064
liquidating agent of a bank;	2065

(f) Any licensed dealer or licensed salesperson whose	2066
performance of investment advisory services described in division	2067
(X)(1) of this section is solely incidental to the conduct of the	2068
dealer's or salesperson's business as a licensed dealer or	2069
licensed salesperson and who receives no special compensation for	2070
the services;	2071

(g) Any person, the advice, analyses, or reports of which do	2072
not relate to securities other than securities that are direct	2073
obligations of, or obligations guaranteed as to principal or	2074
interest by, the United States, or securities issued or guaranteed	2075
by corporations in which the United States has a direct or	2076
indirect interest, and that have been designated by the secretary	2077
of the treasury as exempt securities as defined in the "Securities	2078
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c;	2079

(h) Any person that is excluded from the definition of	2080
investment adviser pursuant to section 202(a)(11)(A) to (E) of the	2081
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that	2082
has received an order from the securities and exchange commission	2083
under section 202(a)(11)(F) of the "Investment Advisers Act of	2084
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not	2085
within the intent of section 202(a)(11) of the Investment Advisers	2086
Act of 1940.	2087

(i) A person who acts solely as a state retirement system	2088
investment officer;	2089

(j) Any other person that the division designates by rule, if	2090
the division finds that the designation is necessary or	2091
appropriate in the public interest or for the protection of	2092
investors or clients and consistent with the purposes fairly	2093
intended by the policy and provisions of this chapter.	2094

(Y)(1) "Subject company" means an issuer that satisfies both	2095
of the following:	2096

(a) Its principal place of business or its principal	2097
executive office is located in this state, or it owns or controls	2098
assets located within this state that have a fair market value of	2099
at least one million dollars.	2100

(b) More than ten per cent of its beneficial or record equity	2101
security holders are resident in this state, more than ten per	2102
cent of its equity securities are owned beneficially or of record	2103
by residents in this state, or more than one thousand of its	2104
beneficial or record equity security holders are resident in this	2105
state.	2106

(2) The division of securities may adopt rules to establish	2107
more specific application of the provisions set forth in division	2108
(Y)(1) of this section. Notwithstanding the provisions set forth	2109
in division (Y)(1) of this section and any rules adopted under	2110
this division, the division, by rule or in an adjudicatory	2111
proceeding, may make a determination that an issuer does not	2112
constitute a "subject company" under division (Y)(1) of this	2113
section if appropriate review of control bids involving the issuer	2114
is to be made by any regulatory authority of another jurisdiction.	2115

(Z) "Beneficial owner" includes any person who directly or	2116
indirectly through any contract, arrangement, understanding, or	2117
relationship has or shares, or otherwise has or shares, the power	2118
to vote or direct the voting of a security or the power to dispose	2119
of, or direct the disposition of, the security. "Beneficial	2120
ownership" includes the right, exercisable within sixty days, to	2121
acquire any security through the exercise of any option, warrant,	2122
or right, the conversion of any convertible security, or	2123
otherwise. Any security subject to any such option, warrant,	2124
right, or conversion privilege held by any person shall be deemed	2125
to be outstanding for the purpose of computing the percentage of	2126
outstanding securities of the class owned by that person, but	2127
shall not be deemed to be outstanding for the purpose of computing	2128
the percentage of the class owned by any other person. A person	2129
shall be deemed the beneficial owner of any security beneficially	2130
owned by any relative or spouse or relative of the spouse residing	2131
in the home of that person, any trust or estate in which that	2132
person owns ten per cent or more of the total beneficial interest	2133
or serves as trustee or executor, any corporation or entity in	2134
which that person owns ten per cent or more of the equity, and any	2135
affiliate or associate of that person.	2136

(AA) "Offeree" means the beneficial or record owner of any	2137
security that an offeror acquires or offers to acquire in	2138
connection with a control bid.	2139

(BB) "Equity security" means any share or similar security,	2140
or any security convertible into any such security, or carrying	2141
any warrant or right to subscribe to or purchase any such	2142
security, or any such warrant or right, or any other security	2143
that, for the protection of security holders, is treated as an	2144
equity security pursuant to rules of the division of securities.	2145

(CC)(1) "Investment adviser representative" means a	2146
supervised person of an investment adviser, provided that the	2147
supervised person has more than five clients who are natural	2148
persons other than excepted persons defined in division (EE) of	2149
this section, and that more than ten per cent of the supervised	2150
person's clients are natural persons other than excepted persons	2151
defined in division (EE) of this section. "Investment adviser	2152
representative" does not mean any of the following:	2153

(a) A supervised person that does not on a regular basis	2154
solicit, meet with, or otherwise communicate with clients of the	2155
investment adviser;	2156

(b) A supervised person that provides only investment	2157
advisory services described in division (X)(1) of this section by	2158
means of written materials or oral statements that do not purport	2159
to meet the objectives or needs of specific individuals or	2160
accounts;	2161

(c) Any other person that the division designates by rule, if	2162
the division finds that the designation is necessary or	2163
appropriate in the public interest or for the protection of	2164
investors or clients and is consistent with the provisions fairly	2165
intended by the policy and provisions of this chapter.	2166

(2) For the purpose of the calculation of clients in division	2167
(CC)(1) of this section, a natural person and the following	2168
persons are deemed a single client: Any minor child of the natural	2169
person; any relative, spouse, or relative of the spouse of the	2170
natural person who has the same principal residence as the natural	2171
person; all accounts of which the natural person or the persons	2172
referred to in division (CC)(2) of this section are the only	2173
primary beneficiaries; and all trusts of which the natural person	2174
or persons referred to in division (CC)(2) of this section are the	2175
only primary beneficiaries. Persons who are not residents of the	2176
United States need not be included in the calculation of clients	2177
under division (CC)(1) of this section.	2178

(3) If subsequent to March 18, 1999, amendments are enacted	2179
or adopted defining "investment adviser representative" for	2180
purposes of the Investment Advisers Act of 1940 or additional	2181
rules or regulations are promulgated by the securities and	2182
exchange commission regarding the definition of "investment	2183
adviser representative" for purposes of the Investment Advisers	2184
Act of 1940, the division of securities shall, by rule, adopt the	2185
substance of the amendments, rules, or regulations, unless the	2186
division finds that the amendments, rules, or regulations are not	2187
necessary for the protection of investors or in the public	2188
interest.	2189

(DD) "Supervised person" means a natural person who is any of	2190
the following:	2191

(1) A partner, officer, or director of an investment adviser,	2192
or other person occupying a similar status or performing similar	2193
functions with respect to an investment adviser;	2194

(2) An employee of an investment adviser;

2195

(3) A person who provides investment advisory services	2196
described in division (X)(1) of this section on behalf of the	2197
investment adviser and is subject to the supervision and control	2198
of the investment adviser.	2199

(EE) "Excepted person" means a natural person to whom any of	2200
the following applies:	2201

(1) Immediately after entering into the investment advisory	2202
contract with the investment adviser, the person has at least	2203
seven hundred fifty thousand dollars under the management of the	2204
investment adviser.	2205

(2) The investment adviser reasonably believes either of the	2206
following at the time the investment advisory contract is entered	2207
into with the person:	2208

(a) The person has a net worth, together with assets held	2209
jointly with a spouse, of more than one million five hundred	2210
thousand dollars.	2211

(b) The person is a qualified purchaser as defined in	2212
division (FF) of this section.	2213

(3) Immediately prior to entering into an investment advisory	2214
contract with the investment adviser, the person is either of the	2215
following:	2216

(a) An executive officer, director, trustee, general partner,	2217
or person serving in a similar capacity, of the investment	2218
adviser;	2219

(b) An employee of the investment adviser, other than an	2220
employee performing solely clerical, secretarial, or	2221
administrative functions or duties for the investment adviser,	2222
which employee, in connection with the employee's regular	2223
functions or duties, participates in the investment activities of	2224
the investment adviser, provided that, for at least twelve months,	2225
the employee has been performing such nonclerical, nonsecretarial,	2226
or nonadministrative functions or duties for or on behalf of the	2227
investment adviser or performing substantially similar functions	2228
or duties for or on behalf of another company.	2229

If subsequent to March 18, 1999, amendments are enacted or	2230
adopted defining "excepted person" for purposes of the Investment	2231
Advisers Act of 1940 or additional rules or regulations are	2232
promulgated by the securities and exchange commission regarding	2233
the definition of "excepted person" for purposes of the Investment	2234
Advisers Act of 1940, the division of securities shall, by rule,	2235
adopt the substance of the amendments, rules, or regulations,	2236
unless the division finds that the amendments, rules, or	2237
regulations are not necessary for the protection of investors or	2238
in the public interest.	2239

(FF)(1) "Qualified purchaser" means either of the following:

2240

(a) A natural person who owns not less than five million	2241
dollars in investments as defined by rule by the division of	2242
securities;	2243

(b) A natural person, acting for the person's own account or	2244
accounts of other qualified purchasers, who in the aggregate owns	2245
and invests on a discretionary basis, not less than twenty-five	2246
million dollars in investments as defined by rule by the division	2247
of securities.	2248

(2) If subsequent to March 18, 1999, amendments are enacted	2249
or adopted defining "qualified purchaser" for purposes of the	2250
Investment Advisers Act of 1940 or additional rules or regulations	2251
are promulgated by the securities and exchange commission	2252
regarding the definition of "qualified purchaser" for purposes of	2253
the Investment Advisers Act of 1940, the division of securities	2254
shall, by rule, adopt the amendments, rules, or regulations,	2255
unless the division finds that the amendments, rules, or	2256
regulations are not necessary for the protection of investors or	2257
in the public interest.	2258

(GG)(1) "Purchase" has the full meaning of "purchase" as	2259
applied by or accepted in courts of law or equity and includes	2260
every acquisition of, or attempt to acquire, a security or an	2261
interest in a security. "Purchase" also includes a contract to	2262
purchase, an exchange, an attempt to purchase, an option to	2263
purchase, a solicitation of a purchase, a solicitation of an offer	2264
to sell, a subscription, or an offer to purchase, directly or	2265
indirectly, by agent, circular, pamphlet, advertisement, or	2266
otherwise.	2267

(2) "Purchase" means any act by which a purchase is made.

2268

(3) Any security given with, or as a bonus on account of, any	2269
purchase of securities is conclusively presumed to constitute a	2270
part of the subject of that purchase.	2271

(HH) "Life settlement interest" means the entire interest or	2272
any fractional interest in an insurance policy or certificate of	2273
insurance, or in an insurance benefit under such a policy or	2274
certificate, that is the subject of a life settlement contract.	2275

For purposes of this division, "life settlement contract"	2276
means an agreement for the purchase, sale, assignment, transfer,	2277
devise, or bequest of any portion of the death benefit or	2278
ownership of any life insurance policy or contract, in return for	2279
consideration or any other thing of value that is less than the	2280
expected death benefit of the life insurance policy or contract.	2281
"Life settlement contract" includes a viatical settlement contract	2282
as defined in section 3916.01 of the Revised Code, but does not	2283
include any of the following:	2284

(1) A loan by an insurer under the terms of a life insurance	2285
policy, including, but not limited to, a loan secured by the cash	2286
value of the policy;	2287

(2) An agreement with a bank that takes an assignment of a	2288
life insurance policy as collateral for a loan;	2289

(3) The provision of accelerated benefits as defined in	2290
section 3915.21 of the Revised Code;	2291

(4) Any agreement between an insurer and a reinsurer;

2292

(5) An agreement by an individual to purchase an existing	2293
life insurance policy or contract from the original owner of the	2294
policy or contract, if the individual does not enter into more	2295
than one life settlement contract per calendar year;	2296

(6) The initial purchase of an insurance policy or	2297
certificate of insurance from its owner by a viatical settlement	2298
provider, as defined in section 3916.01 of the Revised Code, that	2299
is licensed under Chapter 3916. of the Revised Code.	2300

(II) "State retirement system" means the public employees	2301
retirement system, Ohio police and fire pension fund, state	2302
teachers retirement system, school employees retirement system,	2303
and state highway patrol retirement system.	2304

(JJ) "State retirement system investment officer" means an	2305
individual employed by a state retirement system in a position in	2306
which the individual has significant responsibility for investment	2307
decisions, investment strategies, or advising the board of the	2308
state retirement system with regard to the state retirement	2309
system's investments. "State retirement system investment officer"	2310
does not include the chief administrative officer of a state	2311
retirement system.	2312

Sec. 1707.142. No person shall act as a state retirement	2313
system investment officer unless the person is licensed as a state	2314
retirement system investment officer by the division of	2315
securities.	2316

Sec. 1707.152. (A) Application for a state retirement system	2317
investment officer's license shall be made in accordance with this	2318
section by filing with the division of securities the information,	2319
materials, and forms specified in rules adopted by the division.	2320

(B)(1) The division may investigate any applicant for a	2321
license and may require any additional information as it considers	2322
necessary to determine the applicant's business repute and	2323
qualifications to act as an investment officer.	2324

(2) If the application for a state retirement system	2325
investment officer's license involves investigation outside of	2326
this state, the applicant may be required by the division to	2327
advance sufficient funds to pay any of the actual expenses of the	2328
investigation. The division shall furnish the applicant with an	2329
itemized statement of the expenses the applicant is required to	2330
pay.	2331

(C) The division shall by rule require an applicant for a	2332
state retirement system investment officer's license to pass an	2333
examination designated by the division or achieve a specified	2334
professional designation unless the applicant meets both of the	2335
following requirements:	2336

(1) Acts as a state retirement system investment officer on	2337
the effective date of this section;	2338

(2) Has experience or equivalent education acceptable to the	2339
division.	2340

(D) If the division finds that the applicant is of good	2341
business repute, appears to be qualified to act as a state	2342
retirement system investment officer, and has complied with this	2343
chapter and rules adopted under this chapter by the division, the	2344
division, on payment of the fees prescribed by division (B) of	2345
section 1707.17 of the Revised Code, shall issue to the applicant	2346
a license authorizing the applicant to act as a state retirement	2347
system investment officer.	2348

Sec. 1707.17.  (A)(1) The license of every dealer in and	2349
salesperson of securities shall expire on the thirty-first day of	2350
December of each year, and may be renewed upon the filing with the	2351
division of securities of an application for renewal, and the	2352
payment of the fee prescribed in this section. The division shall	2353
give notice, without unreasonable delay, of its action on any	2354
application for renewal of a dealer's or salesperson's license.	2355

(2) The license of every investment adviser and investment	2356
adviser representative licensed under section 1707.141 or 1707.161	2357
of the Revised Code shall expire on the thirty-first day of	2358
December of each year. The licenses may be renewed upon the filing	2359
with the division of an application for renewal, and the payment	2360
of the fee prescribed in division (B) of this section. The	2361
division shall give notice, without unreasonable delay, of its	2362
action on any application for renewal.	2363

(3) An investment adviser required to make a notice filing	2364
under division (B) of section 1707.141 of the Revised Code	2365
annually shall file with the division the notice filing and the	2366
fee prescribed in division (B) of this section, no later than the	2367
thirty-first day of December of each year.	2368

(4) The license of every state retirement system investment	2369
officer licensed under section 1707.152 of the Revised Code shall	2370
expire on the thirty-first day of December of each year. The	2371
licenses may be renewed on the filing with the division of an	2372
application for renewal, and the payment of the fee prescribed in	2373
division (B) of this section. The division shall give notice,	2374
without unreasonable delay, of its action on any application for	2375
renewal.	2376

(B)(1) The fee for each dealer's license, and for each annual	2377
renewal thereof, shall be one hundred dollars. The fee for the	2378
examination of applicant dealers, when administered by the	2379
division, shall be seventy-five dollars.	2380

(2) The fee for each salesperson's license, and for each	2381
annual renewal thereof, shall be fifty dollars. The fee for the	2382
examination of an applicant salesperson, when administered by the	2383
division, shall be fifty dollars.	2384

(3) The fee for each investment adviser's license, and for	2385
each annual renewal thereof, shall be fifty dollars.	2386

(4) The fee for each investment adviser notice filing	2387
required by division (B) of section 1707.141 of the Revised Code	2388
shall be fifty dollars.	2389

(5) The fee for each investment adviser representative's	2390
license, and for each annual renewal thereof, shall be thirty-five	2391
dollars.	2392

(6) The fee for each state retirement system investment	2393
officer's license, and for each annual renewal thereof, shall be	2394
fifty dollars.	2395

(C) A dealer's, salesperson's, investment adviser's, or	2396
investment adviser representative's, or state retirement system	2397
investment officer's license may be issued at any time for the	2398
remainder of the calendar year. In that event, the annual fee	2399
shall not be reduced.	2400

Sec. 1707.19.  (A) An original license, or a renewal thereof,	2401
applied for by a dealer or salesperson of securities, or by an	2402
investment adviser or an, investment adviser representative, or	2403
state retirement system investment officer, may be refused, and	2404
any such license granted may be suspended and, after notice and	2405
hearing in accordance with Chapter 119. of the Revised Code, may	2406
be revoked, by the division of securities, if the division	2407
determines that the applicant or the licensed dealer, salesperson,	2408
investment adviser, or investment adviser representative, or state	2409
retirement system investment officer:	2410

(1) Is not of good business repute;

2411

(2) Is conducting an illegitimate or fraudulent business;

2412

(3) Is, in the case of a dealer or investment adviser,	2413
insolvent;	2414

(4) Has knowingly violated any provision of sections 1707.01	2415
to 1707.45 of the Revised Code, or any regulation or order made	2416
thereunder;	2417

(5) Has knowingly made a false statement of a material fact	2418
or an omission of a material fact in an application for a license,	2419
in a description or application that has been filed, or in any	2420
statement made to the division under such sections;	2421

(6) Has refused to comply with any lawful order or	2422
requirement of the division under section 1707.23 of the Revised	2423
Code;	2424

(7) Has been guilty of any fraudulent act in connection with	2425
the sale of any securities or in connection with acting as an	2426
investment adviser or, investment adviser representative, or state	2427
retirement system investment officer;	2428

(8) Conducts business in purchasing or selling securities at	2429
such variations from the existing market as in the light of all	2430
the circumstances are unconscionable;	2431

(9) Conducts business in violation of such rules and	2432
regulations as the division prescribes for the protection of	2433
investors, clients, or prospective clients, or state retirement	2434
systems;	2435

(10)(a) Has failed to furnish to the division any information	2436
with respect to the purchases or sales of securities within this	2437
state that may be reasonably requested by the division as	2438
pertinent to the protection of investors in this state.	2439

(b) Has failed to furnish to the division any information	2440
with respect to acting as an investment adviser or an, investment	2441
adviser representative, or state retirement system investment	2442
officer within this state that may be reasonably requested by the	2443
division.	2444

(B) For the protection of investors and state retirement	2445
systems the division may prescribe reasonable rules defining	2446
fraudulent, evasive, deceptive, or grossly unfair practices or	2447
devices in the purchase or sale of securities.	2448

(C) For the protection of investors, clients, or prospective	2449
clients, or state retirement systems the division may prescribe	2450
reasonable rules regarding the acts and practices of an investment	2451
adviser or an, investment adviser representative, or state	2452
retirement system investment officer.	2453

(D) Pending any investigation or hearing provided for in	2454
sections 1707.01 to 1707.45 of the Revised Code, the division may	2455
order the suspension of any dealer's, salesperson's, investment	2456
adviser's, or investment adviser representative's, or state	2457
retirement system investment officer's license by notifying the	2458
party concerned of such suspension and the cause for it. If it is	2459
a salesperson whose license is suspended, the division shall also	2460
notify the dealer employing the salesperson. If it is an	2461
investment adviser representative whose license is suspended, the	2462
division also shall notify the investment adviser with whom the	2463
investment adviser representative is employed or associated. If it	2464
is a state retirement system investment officer whose license is	2465
suspended, the division shall also notify the state retirement	2466
system with whom the state retirement system investment officer is	2467
employed.	2468

(E)(1) The suspension or revocation of the dealer's license	2469
suspends the licenses of all the dealer's salespersons.	2470

(2) The suspension or revocation of the investment adviser's	2471
license suspends the licenses of all the investment adviser's	2472
investment adviser representatives. The suspension or revocation	2473
of an investment adviser's registration under section 203 of the	2474
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the	2475
licenses of all the investment adviser's investment adviser	2476
representatives.	2477

(F) It is sufficient cause for refusal, revocation, or	2478
suspension of the license in case of a partnership, partnership	2479
association, corporation, or unincorporated association if any	2480
general partner of the partnership, manager of the partnership	2481
association, or executive officer of the corporation or	2482
unincorporated association is not of good business repute or has	2483
been guilty of any act or omission which would be cause for	2484
refusing or revoking the license of an individual dealer,	2485
salesperson, investment adviser, or investment adviser	2486
representative.	2487

Sec. 1707.20.  (A) The division of securities may adopt,	2488
amend, and rescind such rules, forms, and orders as are necessary	2489
to carry out sections 1707.01 to 1707.45 of the Revised Code,	2490
including rules and forms governing registration statements,	2491
applications, and reports, and defining any terms, whether or not	2492
used in sections 1707.01 to 1707.45 of the Revised Code, insofar	2493
as the definitions are not inconsistent with these sections. For	2494
the purpose of rules and forms, the division may classify	2495
securities, persons, and matters within its jurisdiction, and	2496
prescribe different requirements for different classes.	2497

(B) No rule, form, or order may be made, amended, or	2498
rescinded unless the division finds that the action is necessary	2499
or appropriate in the public interest or for the protection of	2500
investors, clients, or prospective clients, or state retirement	2501
systems and consistent with the purposes fairly intended by the	2502
policy and provisions of sections 1707.01 to 1707.45 of the	2503
Revised Code. In prescribing rules and forms and in otherwise	2504
administering sections 1707.01 to 1707.45 of the Revised Code, the	2505
division may cooperate with the securities administrators of the	2506
other states and the securities and exchange commission with a	2507
view of effectuating the policy of this section to achieve maximum	2508
uniformity in the form and content of registration statements,	2509
applications, reports, and overall securities regulation wherever	2510
practicable.	2511

(C) The division may by rule or order prescribe:

2512

(1) The form and content of financial statements required	2513
under sections 1707.01 to 1707.45 of the Revised Code;	2514

(2) The circumstances under which consolidated financial	2515
statements shall be filed;	2516

(3) Whether any required financial statements shall be	2517
certified by independent or certified public accountants. All	2518
financial statements shall be prepared in accordance with	2519
generally accepted accounting practices.	2520

(D) All rules and forms of the division shall be published;	2521
and in addition to fulfilling the requirements of Chapter 119. of	2522
the Revised Code, the division shall prescribe, and shall publish	2523
and make available its rules regarding the sale of securities, the	2524
administration of sections 1707.01 to 1707.45 of the Revised Code,	2525
and the procedure and practice before the division.	2526

(E) No provision of sections 1707.01 to 1707.45 of the	2527
Revised Code imposing any liability applies to any act done or	2528
omitted in good faith in conformity with any rule, form, or order	2529
of the division of securities, notwithstanding that the rule,	2530
form, or order may later be amended or rescinded or be determined	2531
by judicial or other authority to be invalid for any reason,	2532
except that the issuance of an order granting effectiveness to a	2533
registration under section 1707.09 or 1707.091 of the Revised Code	2534
for the purposes of this division shall not be deemed an order	2535
other than as the establishment of the fact of registration.	2536

Sec. 1707.22.  Whenever a dealer's, salesperson's, investment	2537
adviser's, or investment adviser representative's, or state	2538
retirement system investment officer's license has been refused,	2539
suspended, or revoked, or a renewal thereof has been denied, by	2540
the division of securities, or whenever the division has refused	2541
to qualify securities or has suspended or revoked the registration	2542
of any particular security by description or by qualification, or	2543
the right to buy, sell, or deal in any particular security whether	2544
it is registered or qualified or exempt, or whether the	2545
transactions in it are registered or exempt, the aggrieved party	2546
may appeal in accordance with Chapter 119. of the Revised Code.	2547

An order sustaining the refusal of the division to grant or	2548
renew a dealer's, salesperson's, investment adviser's, or	2549
investment adviser representative's, or state retirement system	2550
investment officer's license or to grant qualification of	2551
securities, or an order sustaining the division in suspending or	2552
revoking a dealer's, salesperson's, investment adviser's, or	2553
investment adviser representative's, or state retirement system	2554
investment officer's license, the registration of any particular	2555
security by description or by qualification, or the right to buy,	2556
sell, or deal in any particular security, shall not bar, after ten	2557
days from the order, a new registration by description, or a new	2558
application of the plaintiff for such a license or qualification	2559
or for a withdrawal of a revocation or suspension; nor shall an	2560
order in favor of the plaintiff prevent the division, after proper	2561
notice and hearing, from thereafter revoking or suspending such	2562
license, registration, or right to buy, sell, or deal in a	2563
particular security, for any proper cause which may, after the	2564
order, accrue or be discovered.	2565

Sec. 1707.23.  Whenever it appears to the division of	2566
securities, from its files, upon complaint, or otherwise, that any	2567
person has engaged in, is engaged in, or is about to engage in any	2568
practice declared to be illegal or prohibited by this chapter or	2569
rules adopted under this chapter by the division, or defined as	2570
fraudulent in this chapter or rules adopted under this chapter by	2571
the division, or any other deceptive scheme or practice in	2572
connection with the sale of securities, or acting as an investment	2573
adviser or, investment adviser representative, or state retirement	2574
system investment officer, or when the division believes it to be	2575
in the best interests of the public and necessary for the	2576
protection of investors, the division may do any of the following:	2577

(A) Require any person to file with it, on such forms as it	2578
prescribes, an original or additional statement or report in	2579
writing, under oath or otherwise, as to any facts or circumstances	2580
concerning the issuance, sale, or offer for sale of securities	2581
within this state by the person, as to the person's acts or	2582
practices as an investment adviser or, investment adviser	2583
representative, or state retirement system investment officer	2584
within this state, and as to other information as it deems	2585
material or relevant thereto;	2586

(B) Examine any investment adviser, investment adviser	2587
representative, state retirement system investment officer, or any	2588
seller, dealer, salesperson, or issuer of any securities, and any	2589
of their agents, employees, partners, officers, directors,	2590
members, or shareholders, wherever located, under oath; and	2591
examine records, books, documents, accounts, and papers as the	2592
division deems material or relevant to the inquiry;	2593

(C) Require the attendance of witnesses, and the production	2594
of books, records, and papers, as are required either by the	2595
division or by any party to a hearing before the division, and for	2596
that purpose issue a subpoena for any witness, or a subpoena duces	2597
tecum to compel the production of any books, records, or papers.	2598
The subpoena shall be served by personal service or by certified	2599
mail, return receipt requested. If the subpoena is returned	2600
because of inability to deliver, or if no return is received	2601
within thirty days of the date of mailing, the subpoena may be	2602
served by ordinary mail. If no return of ordinary mail is received	2603
within thirty days after the date of mailing, service shall be	2604
deemed to have been made. If the subpoena is returned because of	2605
inability to deliver, the division may designate a person or	2606
persons to effect either personal or residence service upon the	2607
witness. The person designated to effect personal or residence	2608
service under this division may be the sheriff of the county in	2609
which the witness resides or may be found or any other duly	2610
designated person. The fees and mileage of the person serving the	2611
subpoena shall be the same as those allowed by the courts of	2612
common pleas in criminal cases, and shall be paid from the funds	2613
of the division. Fees and mileage for the witness shall be the	2614
same as those allowed for witnesses by the courts of common pleas	2615
in criminal cases, and shall be paid from the funds of the	2616
division upon request of the witness following the hearing.	2617

(D) Proceed under section 1707.19 of the Revised Code to	2618
refuse a license applied for by a dealer, salesperson, investment	2619
adviser, or investment adviser representative, or state retirement	2620
system investment officer or to suspend the license of any	2621
licensed dealer, licensed salesperson, licensed investment	2622
adviser, or licensed investment adviser representative, or state	2623
retirement system investment officer and ultimately, if the	2624
division determines, revoke such license under that section;	2625

(E) Initiate criminal proceedings under section 1707.042 or	2626
1707.44 of the Revised Code or rules adopted under those sections	2627
by the division by laying before the prosecuting attorney of the	2628
proper county any evidence of criminality which comes to its	2629
knowledge; and in the event of the neglect or refusal of the	2630
prosecuting attorney to prosecute such violations, or at the	2631
request of the prosecuting attorney, the division shall submit the	2632
evidence to the attorney general, who may proceed in the	2633
prosecution with all the rights, privileges, and powers conferred	2634
by law on prosecuting attorneys, including the power to appear	2635
before grand juries and to interrogate witnesses before such grand	2636
juries.	2637

(F) Require any dealers immediately to furnish to the	2638
division copies of prospectuses, circulars, or advertisements	2639
respecting securities that they publish or generally distribute,	2640
or require any investment advisers immediately to furnish to the	2641
division copies of brochures, advertisements, publications,	2642
analyses, reports, or other writings that they publish or	2643
distribute;	2644

(G) Require any dealers to mail to the division, prior to	2645
sale, notices of intention to sell, in respect to all securities	2646
which are not exempt under section 1707.02 of the Revised Code, or	2647
which are sold in transactions not exempt under section 1707.03 or	2648
1707.04 of the Revised Code;	2649

(H) Issue and cause to be served by certified mail upon all	2650
persons affected an order requiring the person or persons to cease	2651
and desist from the acts or practices appearing to the division to	2652
constitute violations of this chapter or rules adopted under this	2653
chapter by the division. The order shall state specifically the	2654
section or sections of this chapter or the rule or rules adopted	2655
under this chapter by the division that appear to the division to	2656
have been violated and the facts constituting the violation. If	2657
after the issuance of the order it appears to the division that	2658
any person or persons affected by the order have engaged in any	2659
act or practice from which the person or persons shall have been	2660
required, by the order, to cease and desist, the director of	2661
commerce may apply to the court of common pleas of any county for,	2662
and upon proof of the validity of the order of the division, the	2663
delivery of the order to the person or persons affected, and of	2664
the illegality and the continuation of the acts or practices that	2665
are the subject of the order, the court may grant an injunction	2666
implementing the order of the division.	2667

(I) Issue and initiate contempt proceedings in this state	2668
regarding subpoenas and subpoenas duces tecum at the request of	2669
the securities administrator of another state, if it appears to	2670
the division that the activities for which the information is	2671
sought would violate this chapter if the activities had occurred	2672
in this state.	2673

Sec. 1707.25.  In case any person fails to file any statement	2674
or report required by sections 1707.01 to 1707.45 of the Revised	2675
Code, to obey any subpoena the issuance of which is provided for	2676
in those sections, or to produce books, records, or papers, give	2677
testimony, or answer questions, as required by those sections, the	2678
director of commerce may apply to a court of common pleas of any	2679
county for, and upon proof of such failure the court may grant, an	2680
injunction restraining the acting as an investment adviser or,	2681
investment adviser representative, or state retirement system	2682
investment officer, or the issuance, sale, or offer for sale of	2683
any securities by the person or by its agents, employees,	2684
partners, officers, directors, or shareholders, until such failure	2685
has been remedied and other relief as the facts may warrant has	2686
been had. Such injunctive relief is available in addition to the	2687
other remedies provided for in sections 1707.01 to 1707.45 of the	2688
Revised Code.	2689

Where the person refusing to comply with such order of court	2690
is an issuer of securities, the court may enjoin the sale by any	2691
dealer of any securities of the issuer, and the division of	2692
securities may revoke the qualification of the securities of the	2693
issuer, or suspend or revoke the sale of any securities of the	2694
issuer which have been registered by description, and such	2695
securities shall not thereafter be sold by any dealer until the	2696
order of the court or of the division is withdrawn.	2697

Sec. 1707.431.  For purposes of this section, the following	2698
persons shall not be deemed to have effected, participated in, or	2699
aided the seller in any way in making, a sale or contract of sale	2700
in violation of sections 1707.01 to 1707.45 of the Revised Code:	2701

(A) Any attorney, accountant, or engineer whose performance	2702
is incidental to the practice of the person's profession;	2703

(B) Any person, other than an investment adviser or an,	2704
investment adviser representative, or state retirement system	2705
investment officer, who brings any issuer together with any	2706
potential investor, without receiving, directly or indirectly, a	2707
commission, fee, or other remuneration based on the sale of any	2708
securities by the issuer to the investor. Remuneration received by	2709
the person solely for the purpose of offsetting the reasonable	2710
out-of-pocket costs incurred by the person shall not be deemed a	2711
commission, fee, or other remuneration.	2712

Any person claiming exemption under this division for a	2713
publicly advertised meeting shall file a notice with the division	2714
of securities indicating an intent to cause or hold such a meeting	2715
at least twenty-one days prior to the meeting. The division may,	2716
upon receipt of such notice, issue an order denying the	2717
availability of an exemption under this division not more than	2718
fourteen days after receipt of the notice based on a finding that	2719
the applicant is not entitled to the exemption. Notwithstanding	2720
the notice described in this section, a failure to file the notice	2721
does not create a presumption that a person was participating in	2722
or aiding in the making of a sale or contract of sale in violation	2723
of this chapter.	2724

(C) Any person whom the division exempts from this provision	2725
by rule.	2726

Sec. 1707.44.  (A)(1) No person shall engage in any act or	2727
practice that violates division (A), (B), or (C) of section	2728
1707.14 of the Revised Code, and no salesperson shall sell	2729
securities in this state without being licensed pursuant to	2730
section 1707.16 of the Revised Code.	2731

(2) No person shall engage in any act or practice that	2732
violates division (A) of section 1707.141 or section 1707.161 of	2733
the Revised Code.	2734

(3) No person shall engage in any act or practice that	2735
violates section 1707.142 of the Revised Code.	2736

(B) No person shall knowingly make or cause to be made any	2737
false representation concerning a material and relevant fact, in	2738
any oral statement or in any prospectus, circular, description,	2739
application, or written statement, for any of the following	2740
purposes:	2741

(1) Registering securities or transactions, or exempting	2742
securities or transactions from registration, under this chapter;	2743

(2) Securing the qualification of any securities under this	2744
chapter;	2745

(3) Procuring the licensing of any dealer, salesperson,	2746
investment adviser, or investment adviser representative, or state	2747
retirement system investment officer under this chapter;	2748

(4) Selling any securities in this state;

2749

(5) Advising for compensation, as to the value of securities	2750
or as to the advisability of investing in, purchasing, or selling	2751
securities;	2752

(6) Submitting a notice filing to the division under section	2753
1707.092 or 1707.141 of the Revised Code.	2754

(C) No person shall knowingly sell, cause to be sold, offer	2755
for sale, or cause to be offered for sale, any security which	2756
comes under any of the following descriptions:	2757

(1) Is not exempt under section 1707.02 of the Revised Code,	2758
nor the subject matter of one of the transactions exempted in	2759
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not	2760
been registered by coordination or qualification, and is not the	2761
subject matter of a transaction that has been registered by	2762
description;	2763

(2) The prescribed fees for registering by description, by	2764
coordination, or by qualification have not been paid in respect to	2765
such security;	2766

(3) Such person has been notified by the division, or has	2767
knowledge of the notice, that the right to buy, sell, or deal in	2768
such security has been suspended or revoked, or that the	2769
registration by description, by coordination, or by qualification	2770
under which it may be sold has been suspended or revoked;	2771

(4) The offer or sale is accompanied by a statement that the	2772
security offered or sold has been or is to be in any manner	2773
indorsed by the division.	2774

(D) No person who is an officer, director, or trustee of, or	2775
a dealer for, any issuer, and who knows such issuer to be	2776
insolvent in that the liabilities of the issuer exceed its assets,	2777
shall sell any securities of or for any such issuer, without	2778
disclosing the fact of the insolvency to the purchaser.	2779

(E) No person with intent to aid in the sale of any	2780
securities on behalf of the issuer, shall knowingly make any	2781
representation not authorized by such issuer or at material	2782
variance with statements and documents filed with the division by	2783
such issuer.	2784

(F) No person, with intent to deceive, shall sell, cause to	2785
be sold, offer for sale, or cause to be offered for sale, any	2786
securities of an insolvent issuer, with knowledge that such issuer	2787
is insolvent in that the liabilities of the issuer exceed its	2788
assets, taken at their fair market value.	2789

(G) No person in purchasing or selling securities shall	2790
knowingly engage in any act or practice that is, in this chapter,	2791
declared illegal, defined as fraudulent, or prohibited.	2792

(H) No licensed dealer shall refuse to buy from, sell to, or	2793
trade with any person because the person appears on a blacklist	2794
issued by, or is being boycotted by, any foreign corporate or	2795
governmental entity, nor sell any securities of or for any issuer	2796
who is known in relation to the issuance or sale of such	2797
securities to have engaged in such practices.	2798

(I) No dealer in securities, knowing that the dealer's	2799
liabilities exceed the reasonable value of the dealer's assets,	2800
shall accept money or securities, except in payment of or as	2801
security for an existing debt, from a customer who is ignorant of	2802
the dealer's insolvency, and thereby cause the customer to lose	2803
any part of the customer's securities or the value of those	2804
securities, by doing either of the following without the	2805
customer's consent:	2806

(1) Pledging, selling, or otherwise disposing of such	2807
securities, when the dealer has no lien on or any special property	2808
in such securities;	2809

(2) Pledging such securities for more than the amount due, or	2810
otherwise disposing of such securities for the dealer's own	2811
benefit, when the dealer has a lien or indebtedness on such	2812
securities.	2813

It is an affirmative defense to a charge under this division	2814
that, at the time the securities involved were pledged, sold, or	2815
disposed of, the dealer had in the dealer's possession or control,	2816
and available for delivery, securities of the same kinds and in	2817
amounts sufficient to satisfy all customers entitled to the	2818
securities, upon demand and tender of any amount due on the	2819
securities.	2820

(J) No person, with purpose to deceive, shall make, issue,	2821
publish, or cause to be made, issued, or published any statement	2822
or advertisement as to the value of securities, or as to alleged	2823
facts affecting the value of securities, or as to the financial	2824
condition of any issuer of securities, when the person knows that	2825
such statement or advertisement is false in any material respect.	2826

(K) No person, with purpose to deceive, shall make, record,	2827
or publish or cause to be made, recorded, or published, a report	2828
of any transaction in securities which is false in any material	2829
respect.	2830

(L) No dealer shall engage in any act that violates the	2831
provisions of section 15(c) or 15(g) of the "Securities Exchange	2832
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule	2833
or regulation promulgated by the securities and exchange	2834
commission thereunder. If, subsequent to October 11, 1994,	2835
additional amendments to section 15(c) or 15(g) are adopted, or	2836
additional rules or regulations are promulgated pursuant to such	2837
sections, the division of securities shall, by rule, adopt the	2838
amendments, rules, or regulations, unless the division finds that	2839
the amendments, rules, or regulations are not necessary for the	2840
protection of investors or in the public interest.	2841

(M)(1) No investment adviser or investment adviser	2842
representative shall do any of the following:	2843

(a) Employ any device, scheme, or artifice to defraud any	2844
person;	2845

(b) Engage in any act, practice, or course of business that	2846
operates or would operate as a fraud or deceit upon any person;	2847

(c) In acting as principal for the investment adviser's or	2848
investment adviser representative's own account, knowingly sell	2849
any security to or purchase any security from a client, or in	2850
acting as salesperson for a person other than such client,	2851
knowingly effect any sale or purchase of any security for the	2852
account of such client, without disclosing to the client in	2853
writing before the completion of the transaction the capacity in	2854
which the investment adviser or investment adviser representative	2855
is acting and obtaining the consent of the client to the	2856
transaction. Division (M)(1)(c) of this section does not apply to	2857
any investment adviser registered with the securities and exchange	2858
commission under section 203 of the "Investment Advisers Act of	2859
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a	2860
licensed dealer or salesperson if the licensed dealer or	2861
salesperson is not acting as an investment adviser or investment	2862
adviser representative in relation to the transaction.	2863

(d) Engage in any act, practice, or course of business that	2864
is fraudulent, deceptive, or manipulative. The division of	2865
securities may adopt rules reasonably designed to prevent such	2866
acts, practices, or courses of business as are fraudulent,	2867
deceptive, or manipulative.	2868

(2) No investment adviser or investment adviser	2869
representative licensed or required to be licensed under this	2870
chapter shall take or have custody of any securities or funds of	2871
any person, except as provided in rules adopted by the division.	2872

(3) In the solicitation of clients or prospective clients, no	2873
person shall make any untrue statement of a material fact or omit	2874
to state a material fact necessary in order to make the statements	2875
made not misleading in light of the circumstances under which the	2876
statements were made.	2877

(N) No state retirement system investment officer shall do	2878
any of the following:	2879

(1) Employ any device, scheme, or artifice to defraud any	2880
person;	2881

(2) Engage in any act, practice, or course of business that	2882
operates or would operate as a fraud or deceit on any person;	2883

(3) Engage in any act, practice, or course of business that	2884
is fraudulent, deceptive, or manipulative.	2885

The division of securities may adopt rules reasonably	2886
designed to prevent such acts, practices, or courses of business	2887
as are fraudulent, deceptive, or manipulative.	2888

(4) Take or have custody of any securities or funds of any	2889
person, except as provided in rules adopted by the division.	2890

Sec. 1707.46.  The principal executive officer of the	2891
division of securities shall be the commissioner of securities,	2892
who shall be appointed by the director of commerce. The	2893
commissioner of securities shall enforce all the laws and	2894
administrative rules enacted or adopted to regulate the sale of	2895
bonds, stocks, and other securities and to prevent fraud in such	2896
sales. The commissioner also shall enforce all the laws and	2897
administrative rules enacted or adopted to regulate investment	2898
advisers and, investment adviser representatives, and state	2899
retirement system investment officers and to prevent fraud in	2900
their acts, practices, and transactions.	2901

The commissioner shall be paid at a rate not less than pay	2902
range 47 set out in schedule E-2 of section 124.152 of the Revised	2903
Code, to be paid as other operating expenses of the division.	2904

Sec. 3307.03.  A state teachers retirement system is hereby	2905
established for the teachers of the public schools of the state	2906
which includes the several funds created and placed under the	2907
management of a state teachers retirement board for the payment of	2908
retirement allowances and other benefits under Chapter 3307. of	2909
the Revised Code. The board may sue and be sued, plead and be	2910
impleaded, contract and be contracted with, and do all things	2911
necessary to carry out such sections. All of its business shall be	2912
transacted, and all of its funds invested, all warrants for money	2913
drawn and payments made, and all of its cash, securities, and	2914
other property shall be held in the name of the board or in the	2915
name of its nominee, provided that nominees are authorized by	2916
retirement board resolution for the purpose of facilitating the	2917
ownership and transfer of investments and are restricted to	2918
members of the board, the executive director, and designated	2919
members of the staff, or a partnership or corporation composed of	2920
any of the foregoing persons.	2921

If the Ohio retirement study council establishes a uniform	2922
format for any report the board is required to submit to the	2923
council, the board shall submit the report in that format.	2924

Sec. 3307.041. The state teachers retirement board shall do	2925
all of the following:	2926

(A) In consultation with the Ohio ethics commission, review	2927
any existing policy regarding the travel and payment of travel	2928
expenses of members and employees of the state teachers retirement	2929
board and adopt rules in accordance with section 3307.04 of the	2930
Revised Code establishing a new or revised policy regarding travel	2931
and payment of travel expenses;	2932

(B) Review any existing policy regarding compensation and	2933
bonuses paid to employees of the board and adopt rules in	2934
accordance with section 3307.04 of the Revised Code establishing a	2935
new or revised policy regarding employee compensation and bonuses;	2936

(C) Provide copies of the rules adopted under this section to	2937
each member of the Ohio retirement study council.	2938

Sec. 3307.042. The state teachers retirement board	2939
periodically shall provide ethics training to members and	2940
employees of the board. The training shall include training	2941
regarding the requirements and prohibitions of Chapter 102. of the	2942
Revised Code and sections 2921.42 and 2921.43 of the Revised Code	2943
and any other training the board considers appropriate.	2944

The board shall establish a procedure to ensure that each	2945
employee of the board is informed of the procedure for filing a	2946
complaint alleging violation of Chapter 102. of the Revised Code	2947
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	2948
ethics commission or the appropriate prosecuting attorney.	2949

Sec. 3307.05.  The state teachers retirement board shall	2950
consist of the following nine members:	2951

(A) The superintendent of public instructiondirector of	2952
budget and management;	2953

(B) The auditor of state;

2954

(C) The attorney general;

2955

(D) Five members, known as teacher members, who shall be	2956
members of the state teachers retirement system;	2957

(E) A(D) Two former membermembers of the system, known as	2958
the retired teacher membermembers, who shall be a superannuate	2959
andsuperannuates who isare not otherwise employed in a position	2960
positions requiring the retired teacher memberthem to make	2961
contributions to the system.	2962

Sec. 3307.051. Each newly elected member of the state	2963
teachers retirement board and each individual appointed to fill a	2964
vacancy on the board, prior to commencing service as a board	2965
member, shall complete the orientation program component of the	2966
retirement board member education program established under	2967
section 171.50 of the Revised Code.	2968

Each member of the board who has served a year or longer as a	2969
board member shall, not less than twice each year, attend one or	2970
more programs that are part of the continuing education component	2971
of the retirement board member education program established under	2972
section 171.50 of the Revised Code.	2973

Sec. 3307.06.  (A) Annually on the first Monday of May, one	2974
teacher member, as defined in division (D) of section 3307.05 of	2975
the Revised Code, shall be elected by ballot to the state teachers	2976
retirement board, except that, beginning with the annual election	2977
for teacher members in May, 1978, and in the annual election of	2978
each fourth year thereafter, two teacher members shall be elected	2979
to the board. Elected teacher members shall begin their respective	2980
terms of office on the first day of September following their	2981
election and shall serve for a term of four years.	2982

(B) The retired teacher membermembers of the board, as	2983
defined in division (E) of section 3307.05 of the Revised Code,	2984
shall be elected for a term of four years, except that the initial	2985
retired teacher member shall be elected for a term of three years.	2986
The retired teacher membermembers shall be elected to the board	2987
at the annual election for teacher members of the board, as	2988
provided in division (A) of this section, in the year in which the	2989
term of the current retired teacher membermembers would expire.	2990
The retired teacher membermembers shall begin his termtheir	2991
respective terms of office on the first day of September following	2992
histheir election.	2993

No teacher member of the board who retires while a member of	2994
the board shall be eligible to become a retired teacher member of	2995
the board for three years after the date of the member's	2996
retirement.	2997

(C) If a vacancy occurs during the term of office of any	2998
elected member of the board, the remaining members of the board	2999
shall elect a successor member who. On certification of the	3000
election results under section 111.30 of the Revised Code the	3001
successor member shall hold office for the remainder of histhe	3002
predecessor's term. The successor member shall qualify for board	3003
membership under the same division of section 3307.05 of the	3004
Revised Code as histhe member's predecessor in office. Elections	3005
under this division shall be conducted under the supervision of	3006
the secretary of state pursuant to section 111.30 of the Revised	3007
Code.	3008

(D)(E) If as a result of changed circumstances an elected	3009
member of the board would no longer qualify for board membership	3010
under that division of section 3307.05 of the Revised Code on the	3011
basis of which hethe member was elected, or if such a member	3012
fails to attend the meetings of the board for four months or	3013
longer, without being excused, histhe member's position on the	3014
board shall be considered vacant, and a successor member shall be	3015
chosenelected, under division (C)(D) of this section, for the	3016
remainder of histhe unexpired term.	3017

Sec. 3307.061. A member of the state teachers retirement	3018
board who is charged with committing a felony, a theft offense as	3019
defined in section 2913.01 of the Revised Code, or a violation of	3020
section 102.02, 102.03, 102.04, 102.07, 2921.02, 2921.11, 2921.13,	3021
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code	3022
shall be suspended from participation on the board for the period	3023
during which the charges are pending. If the charges are	3024
dismissed, the member is found not guilty, or the charges are	3025
otherwise resolved in a manner not resulting in the member being	3026
convicted of or pleading guilty to an offense of that nature, the	3027
suspension shall end, and the member may participate on the board.	3028
If the member pleads guilty to or is convicted of the offense, the	3029
position of the member on the board shall be deemed vacant. A	3030
person who has pleaded guilty to or been convicted of an offense	3031
of that nature is ineligible for election to the state teachers	3032
retirement board.	3033

The Ohio retirement study council may hold a hearing to	3034
determine whether to remove a member of the state teachers	3035
retirement board who has been suspended pursuant to this section.	3036
If it decides to hold a hearing, the council shall provide the	3037
suspended board member at least seven days prior notice of the	3038
time, date, and place of the hearing. The suspended board member	3039
may be represented by an attorney. At the hearing the suspended	3040
board member, or the suspended board member's attorney, shall have	3041
an opportunity to present evidence, call witnesses, and	3042
cross-examine witnesses. The hearing shall be open to the public.	3043
At the conclusion of the hearing, if the voting members of the	3044
council unanimously vote to remove the suspended board member, the	3045
suspended board member shall be removed from the board, and the	3046
position of the member shall be deemed vacant.	3047

Sec. 3307.07. AllThe state teachers retirement board shall	3048
administer all elections of members of the state teachers	3049
retirement board shall be held under the direction of the boardin	3050
accordance with rules adopted under section 111.30 of the Revised	3051
Code. Any member of the state teachers retirement system, who has	3052
been nominated by a petition that is signed by five hundred or	3053
more members of the system and certified under section 111.30 of	3054
the Revised Code, shall be eligible for election as a teacher	3055
member of the board. The petition shall contain the signatures of	3056
twenty or more members of the system from each of at least ten	3057
counties wherein members of the system are employed.	3058

Any retired teacher who is a superannuate and a resident of	3059
Ohio is eligible for election as thea retired teacher member of	3060
the board, if such retired teacher has been nominated by a	3061
petition that is signed by five hundred or more retired teachers,	3062
who are also superannuates, and certified under section 111.30 of	3063
the Revised Code. The petition shall contain the signatures of	3064
twenty or more retired teachers from each of at least ten counties	3065
wherein superannuates under the system reside.	3066

The board shall place the name of any eligible candidate upon	3067
the appropriate ballot as a regular candidate. At any election,	3068
qualified voters, as defined in this section, may vote for the	3069
regular candidates or for other eligible candidates, in which case	3070
the names of such persons shall be written upon the appropriate	3071
ballots, except that members of the system and former members of	3072
the system who are superannuates shall vote respectively for	3073
teacher members and the retired teacher membermembers of the	3074
board. The candidate who receives the highest number of votes for	3075
any term of office shall be elected to the board on certification	3076
of the election results under section 111.30 of the Revised Code.	3077
If, at any election, teacher members or retired teacher members	3078
are to be elected for concurrent terms, eligible candidates shall	3079
be placed on the ballot, and the candidates who receive the	3080
highest numbers of votes shall be elected to the board on	3081
certification of the election results under section 111.30 of the	3082
Revised Code.	3083

Elected members of the board shall be elected on the basis of	3084
the total number of ballots cast by qualified voters, who shall	3085
consist of members of the system and former members of the system	3086
who are superannuates.	3087

Sec. 3307.072. (A) As used in this section:

3088

(1) "Campaign committee" means a candidate or a combination	3089
of two or more persons authorized by a candidate to receive	3090
contributions and in-kind contributions and make expenditures on	3091
behalf of the candidate.	3092

(2) "Candidate" means an individual who has been nominated	3093
pursuant to section 3307.07 of the Revised Code for election to	3094
the state teachers retirement board.	3095

(3) "Contribution" means a loan, gift, deposit, forgiveness	3096
of indebtedness, donation, advance, payment, transfer of funds or	3097
transfer of anything of value including a transfer of funds from	3098
an inter vivos or testamentary trust or decedent's estate, and the	3099
payment by any person other than the person to whom the services	3100
are rendered for the personal services of another person, which	3101
contribution is made, received, or used for the purpose of	3102
influencing the results of an election to the state teachers	3103
retirement board under section 3307.07 of the Revised Code.	3104
"Contribution" does not include:	3105

(a) Services provided without compensation by individuals	3106
volunteering a portion or all of their time on behalf of a person;	3107

(b) Ordinary home hospitality;

3108

(c) The personal expenses of a volunteer paid for by that	3109
volunteer campaign worker.	3110

(4) "Election day" means the following, as appropriate to the	3111
situation:	3112

(a) The first Monday in May of a year for which section	3113
3307.06 of the Revised Code specifies that an election for a	3114
member of the state teachers retirement board be held;	3115

(b) If, pursuant to section 3307.071 of the Revised Code, no	3116
election is held, the first Monday in May of a year that the	3117
election would have been held if not for section 3307.071 of the	3118
Revised Code.	3119

(5) "Expenditure" means the disbursement or use of a	3120
contribution for the purpose of influencing the results of an	3121
election to the state teachers retirement board under section	3122
3307.07 of the Revised Code.	3123

(6) "In-kind contribution" means anything of value other than	3124
money that is used to influence the results of an election to the	3125
state teachers retirement board under section 3307.07 of the	3126
Revised Code or is transferred to or used in support of or in	3127
opposition to a candidate and that is made with the consent of, in	3128
coordination, cooperation, or consultation with, or at the request	3129
or suggestion of the benefited candidate. The financing of the	3130
dissemination, distribution, or republication, in whole or part,	3131
of any broadcast or of any written, graphic, or other form of	3132
campaign materials prepared by the candidate, the candidate's	3133
campaign committee, or their authorized agents is an in-kind	3134
contribution to the candidate and an expenditure by the candidate.	3135

(7) "Personal expenses" includes ordinary expenses for	3136
accommodations, clothing, food, personal motor vehicle or	3137
airplane, and home telephone.	3138

(B) Each candidate who, or whose campaign committee, receives	3139
a contribution or in-kind contribution or makes an expenditure in	3140
connection with the candidate's efforts to be elected to the state	3141
teachers retirement board shall file with the secretary of state	3142
two complete, accurate, and itemized statements setting forth in	3143
detail the contributions, in-kind contributions, and expenditures.	3144
The statements shall be filed regardless of whether, pursuant to	3145
section 3307.071 of the Revised Code, no election is held. The	3146
statements shall be made on a form prescribed under section 111.30	3147
of the Revised Code. The first statement shall be filed not later	3148
than four p.m. on the day that is twelve days before election day.	3149
The second statement shall be filed not sooner than the day that	3150
is eight days after election day and not later than thirty-eight	3151
days after election day. The first statement shall reflect	3152
contributions and in-kind contributions received and expenditures	3153
made to the close of business on the twentieth day before election	3154
day. The second statement shall reflect contributions and in-kind	3155
contributions received and expenditures made during the period	3156
beginning on the nineteenth day before election day and ending on	3157
the close of business on the seventh day after election day.	3158

Sec. 3307.073. No person shall knowingly fail to file a	3159
complete and accurate statement in accordance with section	3160
3307.072 of the Revised Code.	3161

Sec. 3307.074. The secretary of state, or any person acting	3162
on personal knowledge and subject to the penalties of perjury, may	3163
file a complaint with the Ohio elections commission alleging a	3164
violation of section 3307.073 of the Revised Code. The complaint	3165
shall be made on a form prescribed and provided by the commission.	3166

On receipt of a complaint under this section, the commission	3167
shall hold a hearing open to the public to determine whether the	3168
violation alleged in the complaint has occurred. The commission	3169
may administer oaths and issue subpoenas to any person in the	3170
state compelling the attendance of witnesses and the production of	3171
relevant papers, books, accounts, and reports. On the refusal of	3172
any person to obey a subpoena or to be sworn or to answer as a	3173
witness, the commission may apply to the court of common pleas of	3174
Franklin county under section 2705.03 of the Revised Code. The	3175
court shall hold proceedings in accordance with Chapter 2705. of	3176
the Revised Code.	3177

The commission shall provide the person accused of the	3178
violation at least seven days prior notice of the time, date, and	3179
place of the hearing. The accused may be represented by an	3180
attorney and shall have an opportunity to present evidence, call	3181
witnesses, and cross-examine witnesses.	3182

At the hearing, the commission shall determine whether the	3183
violation alleged in the complaint has occurred. If the commission	3184
determines that the violation has occurred, the commission shall	3185
either impose a fine under section 3307.99 of the Revised Code or	3186
enter a finding that good cause has been shown not to impose the	3187
fine.	3188

Sec. 3307.11.  The state teachers retirement board shall	3189
elect from its membership, a chairperson and a vice-chairperson.	3190
The board shall employ an executive director who shall serve as	3191
secretary, and shall employ other persons necessary to operate the	3192
system and to fulfill the board's duties and responsibilities	3193
under Chapter 3307. of the Revised Code. The	3194

Effective ninety days after the effective date of this	3195
amendment, the board may not employ a state retirement system	3196
investment officer, as defined in section 1707.01 of the Revised	3197
Code, who does not hold a valid state retirement system investment	3198
officer license issued by the division of securities in the	3199
department of commerce.	3200

The compensation of all employees and all other expenses of	3201
the board necessary for the proper operation of the system shall	3202
be paid in such amounts as the board approves.	3203

Every expense voucher of an employee, officer, or board	3204
member of the state teachers retirement system shall itemize all	3205
purchases and expenditures.	3206

The board shall receive all applications for retirement under	3207
the plans described in section 3307.031 of the Revised Code, shall	3208
provide for the payment of all retirement allowances and other	3209
benefits payable under this chapter, and shall make other	3210
expenditures authorized by this chapter.	3211

Sec. 3307.152. The attorney general may maintain a civil	3212
action under section 109.98 of the Revised Code against a member	3213
of the state teachers retirement board for harm resulting from a	3214
breach of the member's fiduciary duty.	3215

Sec. 3307.20.  (A) As used in this section:

3216

(1) "Personal history record" means information maintained by	3217
the state teachers retirement board on an individual who is a	3218
member, former member, contributor, former contributor, retirant,	3219
or beneficiary that includes the address, telephone number, social	3220
security number, record of contributions, correspondence with the	3221
state teachers retirement system, or other information the board	3222
determines to be confidential.	3223

(2) "Retirant" has the same meaning as in section 3307.50 of	3224
the Revised Code.	3225

(B) The records of the board shall be open to public	3226
inspection, except for the following, which shall be excluded,	3227
except with the written authorization of the individual concerned:	3228

(1) The individual's personal records provided for in section	3229
3307.23 of the Revised Code;	3230

(2) The individual's personal history record;

3231

(3) Any information identifying, by name and address, the	3232
amount of a monthly allowance or benefit paid to the individual.	3233

(C) All medical reports and recommendations under sections	3234
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged,	3235
except that copies of such medical reports or recommendations	3236
shall be made available to the personal physician, attorney, or	3237
authorized agent of the individual concerned upon written release	3238
received from the individual or the individual's agent, or, when	3239
necessary for the proper administration of the fund, to the board	3240
assigned physician.	3241

(D) Any person who is a member or contributor of the system	3242
shall be furnished, on written request, with a statement of the	3243
amount to the credit of the person's account. The board need not	3244
answer more than one request of a person in any one year.	3245

(E) Notwithstanding the exceptions to public inspection in	3246
division (B) of this section, the board may furnish the following	3247
information:	3248

(1) If a member, former member, retirant, contributor, or	3249
former contributor is subject to an order issued under section	3250
2907.15 of the Revised Code or is convicted of or pleads guilty to	3251
a violation of section 2921.41 of the Revised Code, on written	3252
request of a prosecutor as defined in section 2935.01 of the	3253
Revised Code, the board shall furnish to the prosecutor the	3254
information requested from the individual's personal history	3255
record.	3256

(2) Pursuant to a court or administrative order issued under	3257
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the	3258
Revised Code, the board shall furnish to a court or child support	3259
enforcement agency the information required under that section.	3260

(3) At the written request of any person, the board shall	3261
provide to the person a list of the names and addresses of	3262
members, former members, retirants, contributors, former	3263
contributors, or beneficiaries. The costs of compiling, copying,	3264
and mailing the list shall be paid by such person.	3265

(4) Within fourteen days after receiving from the director of	3266
job and family services a list of the names and social security	3267
numbers of recipients of public assistance pursuant to section	3268
5101.181 of the Revised Code, the board shall inform the auditor	3269
of state of the name, current or most recent employer address, and	3270
social security number of each member whose name and social	3271
security number are the same as that of a person whose name or	3272
social security number was submitted by the director. The board	3273
and its employees shall, except for purposes of furnishing the	3274
auditor of state with information required by this section,	3275
preserve the confidentiality of recipients of public assistance in	3276
compliance with division (A) of section 5101.181 of the Revised	3277
Code.	3278

(5) The system shall comply with orders issued under section	3279
3105.87 of the Revised Code.	3280

On the written request of an alternate payee, as defined in	3281
section 3105.80 of the Revised Code, the system shall furnish to	3282
the alternate payee information on the amount and status of any	3283
amounts payable to the alternate payee under an order issued under	3284
section 3105.171 or 3105.65 of the Revised Code.	3285

(6) At the written request of any person, the board shall	3286
make available to the person copies of all documents, including	3287
resumes, in the board's possession regarding filling a vacancy of	3288
a teacher member or retired teacher member of the board. The	3289
person who made the request shall pay the cost of compiling,	3290
copying, and mailing the documents.	3291

(F) A statement that contains information obtained from the	3292
system's records that is signed by an officer of the retirement	3293
system and to which the system's official seal is affixed, or	3294
copies of the system's records to which the signature and seal are	3295
attached, shall be received as true copies of the system's records	3296
in any court or before any officer of this state.	3297

Sec. 3307.99. Whoever violates section 3307.073 of the	3298
Revised Code shall be fined not more than one hundred dollars for	3299
each day of the violation.	3300

Fines imposed by the Ohio elections commission under this	3301
section shall be paid into the Ohio elections commission fund	3302
created under section 3513.10 of the Revised Code.	3303

Sec. 3309.03.  A school employees retirement system is hereby	3304
established for the employees as defined in section 3309.01 of the	3305
Revised Code, which shall include the several funds created and	3306
placed under the management of the school employees retirement	3307
board for the payment of retirement allowances and other benefits	3308
provided in Chapter 3309. of the Revised Code. The board may sue	3309
and be sued, plead and be impleaded, contract and be contracted	3310
with, and do all things necessary to carry out Chapter 3309. of	3311
the Revised Code. All of its business shall be transacted, all of	3312
its funds invested, all warrants for money drawn and payments	3313
made, and all of its cash, securities, and other property shall be	3314
held in the name of the board, or in the name of its nominee,	3315
provided that nominees are authorized by retirement board	3316
resolution for such purposes. The board may take all appropriate	3317
action to avoid payment by the system or its members of federal or	3318
state income taxes on contributions to the system or amounts	3319
earned on those contributions.	3320

If the Ohio retirement study council establishes a uniform	3321
format for any report the board is required to submit to the	3322
council, the board shall submit the report in that format.	3323

Sec. 3309.041. The school employees retirement board shall do	3324
all of the following:	3325

(A) In consultation with the Ohio ethics commission, review	3326
any existing policy regarding the travel and payment of travel	3327
expenses of members and employees of the school employees	3328
retirement board and adopt rules in accordance with section	3329
3309.04 of the Revised Code establishing a new or revised policy	3330
regarding travel and payment of travel expenses;	3331

(B) Review any existing policy regarding compensation and	3332
bonuses paid to employees of the board and adopt rules in	3333
accordance with section 3309.04 of the Revised Code establishing a	3334
new or revised policy regarding employee compensation and bonuses;	3335

(C) Provide copies of the rules adopted under this section to	3336
each member of the Ohio retirement study council.	3337

Sec. 3309.042. The school employees retirement board	3338
periodically shall provide ethics training to members and	3339
employees of the board. The training shall include training	3340
regarding the requirements and prohibitions of Chapter 102. of the	3341
Revised Code and sections 2921.42 and 2921.43 of the Revised Code	3342
and any other training the board considers appropriate.	3343

The board shall establish a procedure to ensure that each	3344
employee of the board is informed of the procedure for filing a	3345
complaint alleging violation of Chapter 102. of the Revised Code	3346
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	3347
ethics commission or the appropriate prosecuting attorney.	3348

Sec. 3309.05.  The school employees retirement board shall	3349
consist of the following seven members:	3350

(A) The auditor of state;

3351

(B) The attorney generaldirector of budget and management;

3352

(C) Four members, known as employee members, who shall be	3353
members of the school employees retirement system, and who shall	3354
be elected by ballot by the members of the system;	3355

(D) One member, known as the retirant member, who shall be a	3356
former member of the retirement system who is a resident of this	3357
state and currently receiving an age and service retirement	3358
benefit, a disability benefit, or benefits under a plan	3359
established under section 3309.81 of the Revised Code. The	3360
retirant member shall be elected by ballot by former members of	3361
the system who are currently receiving an age and service	3362
retirement benefit, a disability benefit, or benefits under a plan	3363
established under section 3309.81 of the Revised Code.	3364

Sec. 3309.051. Each newly elected member of the school	3365
employees retirement board and each individual appointed to fill a	3366
vacancy on the board, prior to commencing service as a board	3367
member, shall complete the orientation program component of the	3368
retirement board member education program established under	3369
section 171.50 of the Revised Code.	3370

Each member of the board who has served a year or longer as a	3371
board member shall, not less than twice each year, attend one or	3372
more programs that are part of the continuing education component	3373
of the retirement board member education program established under	3374
section 171.50 of the Revised Code.	3375

Sec. 3309.06. (A) Elections for employee and retirant members	3376
of the school employees retirement board shall be held on the	3377
first Monday of March. Terms of office of the employee members and	3378
the retirant member of the board shall be for four years each,	3379
commencing on the first day of July following the election and	3380
ending on the thirtieth day of June. The initial terms of the	3381
retirant member and the new employee member shall commence on July	3382
1, 1984, and end on June 30, 1988. Vancancies occurring in	3383

(B) If a vacancy occurs during the termsterm of an employee	3384
membersmember or the retirant member of the board shall be filled	3385
by, the remaining members of the board for the unexpired terms	3386
shall elect a successor employee member or successor retirant	3387
member. EmployeeOn certification of the election results under	3388
section 111.30 of the Revised Code, the successor employee member	3389
or successor retirant member shall hold office for the remainder	3390
of the predecessor employee member's or predecessor retirant	3391
member's term. Elections under this division shall be conducted	3392
under the supervision of the secretary of state pursuant to	3393
section 111.30 of the Revised Code.	3394

(C) Employee members or the retirant member of the board who	3395
fail to attend the meetings of the board for four months or	3396
longer, without being excused, shall be considered as having	3397
resigned and successors shall be elected for their unexpired terms	3398
pursuant to division (B) of this section. If as a result of	3399
changed circumstances the retirant member would no longer qualify	3400
for membership on the board as the retirant member, the office	3401
shall be considered vacant, and a successor retirant member shall	3402
be elected pursuant to division (B) of this section.	3403

Sec. 3309.061. A member of the school employees retirement	3404
board who is charged with committing a felony, a theft offense as	3405
defined in section 2913.01 of the Revised Code, or a violation of	3406
section 102.02, 102.03, 102.04, 102.07, 2921.02, 2921.11, 2921.13,	3407
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code	3408
shall be suspended from participation on the board for the period	3409
during which the charges are pending. If the charges are	3410
dismissed, the member is found not guilty, or the charges are	3411
otherwise resolved in a manner not resulting in the member being	3412
convicted of or pleading guilty to an offense of that nature, the	3413
suspension shall end, and the member may participate on the board.	3414
If the member pleads guilty to or is convicted of the offense, the	3415
position of the member on the board shall be deemed vacant. A	3416
person who has pleaded guilty to or been convicted of an offense	3417
of that nature is ineligible for election to the school employees	3418
retirement board.	3419

The Ohio retirement study council may hold a hearing to	3420
determine whether to remove a member of the school employees	3421
retirement board who has been suspended pursuant to this section.	3422
If it decides to hold a hearing, the council shall provide the	3423
suspended board member at least seven days prior notice of the	3424
time, date, and place of the hearing. The suspended board member	3425
may be represented by an attorney. At the hearing the suspended	3426
board member, or the suspended board member's attorney, shall have	3427
an opportunity to present evidence, call witnesses, and	3428
cross-examine witnesses. The hearing shall be open to the public.	3429
At the conclusion of the hearing, if the voting members of the	3430
council unanimously vote to remove the suspended board member, the	3431
suspended board member shall be removed from the board, and the	3432
position of the member shall be deemed vacant.	3433

Sec. 3309.07.  (A) AllThe school employees retirement board	3434
shall administer all elections for employee or retirant members of	3435
the school employees retirement board shall be held under the	3436
direction of the boardin accordance with rules adopted under	3437
section 111.30 of the Revised Code.	3438

(B) Any member of the school employees retirement system,	3439
other than a disability benefit recipient, shall be eligible for	3440
election as an employee member of the board who has been nominated	3441
by a petition that is signed by at least five hundred members,	3442
provided that there shall beand certified under section 111.30 of	3443
the Revised Code. The petition shall contain the signatures of not	3444
less than twenty signersmembers each from at least ten counties	3445
wherein such members are employed. The petition shall specify the	3446
term of office and position. The name of any member so nominated	3447
shall be placed upon the ballot by the board as a regular	3448
candidate. Other names of eligible candidates may at any election	3449
be substituted for the regular candidates by writing such names	3450
upon the ballot. The candidate receiving the highest number of	3451
votes for any term as member of the board shall be elected for	3452
such term on certification of the election results under section	3453
111.30 of the Revised Code. In any year in which two employee	3454
member positions must be filled, the candidates who receive the	3455
highest and second highest number of votes shall be elected to the	3456
offices on certification of the election results under section	3457
111.30 of the Revised Code.	3458

(C) Any former member of the school employees retirement	3459
system described in division (D) of section 3309.05 of the Revised	3460
Code is eligible for election as the retirant member of the board	3461
to represent former members currently receiving an age and service	3462
retirement benefit, a disability benefit, or benefits under a plan	3463
established under section 3309.81 of the Revised Code, provided	3464
that such person has been nominated by a petition that is	3465
certified under section 111.30 of the Revised Code and signed by	3466
at least one hundred fifty former members of the system who are	3467
currently receiving an age and service retirement benefit, a	3468
disability benefit, or benefits under a plan established under	3469
section 3309.81 of the Revised Code. The petition shall contain	3470
the signatures of at least ten such recipients from each of at	3471
least five counties wherein recipients of benefits from this	3472
system reside. The petition shall specify the term of office and	3473
position. The name of any person so nominated shall be placed upon	3474
the ballot by the board as a regular candidate. Other names of	3475
eligible candidates may at any election be substituted for the	3476
regular candidates by writing such names upon the ballot. The	3477
candidate receiving the highest number of votes for any term as	3478
member of the board shall be elected for such term on	3479
certification of the election results under section 111.30 of the	3480
Revised Code.	3481

No employee member of the board who retires while a member of	3482
the board shall be eligible to become a retirant member of the	3483
board for three years after the date of the member's retirement.	3484

Sec. 3309.061.        Sec. 3309.071.  Notwithstanding sections 3309.05,	3485
3309.06, and 3309.07 of the Revised Code, the school employees	3486
retirement board is not required to hold an election for a	3487
position on the board as an employee member or retirant member if	3488
only one candidate has been nominated for the position by petition	3489
in accordance with section 3309.07 of the Revised Code. The	3490
candidate shall take office as if elected. The term of office	3491
shall be four years beginning on the first day of July following	3492
the date the candidate was nominated.	3493

Sec. 3309.072. (A) As used in this section:

3494

(1) "Campaign committee" means a candidate or a combination	3495
of two or more persons authorized by a candidate to receive	3496
contributions and in-kind contributions and make expenditures on	3497
behalf of the candidate.	3498

(2) "Candidate" means an individual who has been nominated	3499
pursuant to section 3309.07 of the Revised Code for election to	3500
the school employees retirement board.	3501

(3) "Contribution" means a loan, gift, deposit, forgiveness	3502
of indebtedness, donation, advance, payment, transfer of funds or	3503
transfer of anything of value including a transfer of funds from	3504
an inter vivos or testamentary trust or decedent's estate, and the	3505
payment by any person other than the person to whom the services	3506
are rendered for the personal services of another person, which	3507
contribution is made, received, or used for the purpose of	3508
influencing the results of an election to the school employees	3509
retirement board under section 3309.07 of the Revised Code.	3510
"Contribution" does not include:	3511

(a) Services provided without compensation by individuals	3512
volunteering a portion or all of their time on behalf of a person;	3513

(b) Ordinary home hospitality;

3514

(c) The personal expenses of a volunteer paid for by that	3515
volunteer campaign worker.	3516

(4) "Election day" means the following, as appropriate to the	3517
situation:	3518

(a) The first Monday in March of a year for which section	3519
3309.06 of the Revised Code specifies that an election for a	3520
member of the school employees retirement board be held;	3521

(b) If, pursuant to section 3309.071 of the Revised Code, no	3522
election is held, the first Monday in March of a year that the	3523
election would have been held if not for section 3309.071 of the	3524
Revised Code.	3525

(5) "Expenditure" means the disbursement or use of a	3526
contribution for the purpose of influencing the results of an	3527
election to the school employees retirement board under section	3528
3309.07 of the Revised Code.	3529

(6) "In-kind contribution" means anything of value other than	3530
money that is used to influence the results of an election to the	3531
school employees retirement board under section 3309.07 of the	3532
Revised Code or is transferred to or used in support of or in	3533
opposition to a candidate and that is made with the consent of, in	3534
coordination, cooperation, or consultation with, or at the request	3535
or suggestion of the benefited candidate. The financing of the	3536
dissemination, distribution, or republication, in whole or part,	3537
of any broadcast or of any written, graphic, or other form of	3538
campaign materials prepared by the candidate, the candidate's	3539
campaign committee, or their authorized agents is an in-kind	3540
contribution to the candidate and an expenditure by the candidate.	3541

(7) "Personal expenses" includes ordinary expenses for	3542
accommodations, clothing, food, personal motor vehicle or	3543
airplane, and home telephone.	3544

(B) Each candidate who, or whose campaign committee, receives	3545
a contribution or in-kind contribution or makes an expenditure in	3546
connection with the candidate's efforts to be elected to the	3547
school employees retirement board shall file with the secretary of	3548
state two complete, accurate, and itemized statements setting	3549
forth in detail the contributions, in-kind contributions, and	3550
expenditures. The statements shall be filed regardless of whether,	3551
pursuant to section 3309.071 of the Revised Code, no election is	3552
held. The statements shall be made on a form prescribed under	3553
section 111.30 of the Revised Code. The first statement shall be	3554
filed not later than four p.m. on the day that is twelve days	3555
before election day. The second statement shall be filed not	3556
sooner than the day that is eight days after election day and not	3557
later than thirty-eight days after election day. The first	3558
statement shall reflect contributions and in-kind contributions	3559
received and expenditures made to the close of business on the	3560
twentieth day before election day. The second statement shall	3561
reflect contributions and in-kind contributions received and	3562
expenditures made during the period beginning on the nineteenth	3563
day before election day and ending on the close of business on the	3564
seventh day after election day.	3565

Sec. 3309.073. No person shall knowingly fail to file a	3566
complete and accurate statement in accordance with section	3567
3309.072 of the Revised Code.	3568

Sec. 3309.074. The secretary of state, or any person acting	3569
on personal knowledge and subject to the penalties of perjury, may	3570
file a complaint with the Ohio elections commission alleging a	3571
violation of section 3309.073 of the Revised Code. The complaint	3572
shall be made on a form prescribed and provided by the commission.	3573

On receipt of a complaint under this section, the commission	3574
shall hold a hearing open to the public to determine whether the	3575
violation alleged in the complaint has occurred. The commission	3576
may administer oaths and issue subpoenas to any person in the	3577
state compelling the attendance of witnesses and the production of	3578
relevant papers, books, accounts, and reports. On the refusal of	3579
any person to obey a subpoena or to be sworn or to answer as a	3580
witness, the commission may apply to the court of common pleas of	3581
Franklin county under section 2705.03 of the Revised Code. The	3582
court shall hold proceedings in accordance with Chapter 2705. of	3583
the Revised Code.	3584

The commission shall provide the person accused of the	3585
violation at least seven days prior notice of the time, date, and	3586
place of the hearing. The accused may be represented by an	3587
attorney and shall have an opportunity to present evidence, call	3588
witnesses, and cross-examine witnesses.	3589

At the hearing, the commission shall determine whether the	3590
violation alleged in the complaint has occurred. If the commission	3591
determines that the violation has occurred, the commission shall	3592
either impose a fine under section 3309.99 of the Revised Code or	3593
enter a finding that good cause has been shown not to impose the	3594
fine.	3595

Sec. 3309.14.  The school employees retirement board shall	3596
secure the service of such technical and administrative employees	3597
as are necessary for the transaction of the business of the school	3598
employees retirement system. The	3599

Effective ninety days after the effective date of this	3600
amendment, the board may not employ a state retirement system	3601
investment officer, as defined in section 1707.01 of the Revised	3602
Code, who does not hold a valid state retirement system investment	3603
officer license issued by the division of securities in the	3604
department of commerce.	3605

The compensation of all persons engaged by the board and all	3606
other expenses of the board necessary for the proper operation of	3607
the system shall be paid at such rates and in such amounts as the	3608
board approves. Every expense voucher of an employee, officer, or	3609
board member of the school employees retirement system shall	3610
itemize all purchases and expenditures.	3611

The board shall receive and act upon all applications for	3612
retirement under Chapter 3309. of the Revised Code, and shall	3613
provide for the payment of all retirement allowances and other	3614
benefits and shall make other expenditures required or authorized	3615
by this chapter.	3616

Sec. 3309.157. The attorney general may maintain a civil	3617
action under section 109.98 of the Revised Code against a member	3618
of the school employees retirement board for harm resulting from a	3619
breach of the member's fiduciary duty. The attorney general may	3620
recover damages or be granted injunctive relief, which shall	3621
include the enjoinment of specified activities and the removal of	3622
the member from the board. Any damages awarded shall be paid to	3623
the school employees retirement system.	3624

Sec. 3309.22.  (A)(1) As used in this division, "personal	3625
history record" means information maintained by the board on an	3626
individual who is a member, former member, contributor, former	3627
contributor, retirant, or beneficiary that includes the address,	3628
telephone number, social security number, record of contributions,	3629
correspondence with the system, and other information the board	3630
determines to be confidential.	3631

(2) The records of the board shall be open to public	3632
inspection, except for the following, which shall be excluded,	3633
except with the written authorization of the individual concerned:	3634

(a) The individual's statement of previous service and other	3635
information as provided for in section 3309.28 of the Revised	3636
Code;	3637

(b) Any information identifying by name and address the	3638
amount of a monthly allowance or benefit paid to the individual;	3639

(c) The individual's personal history record.

3640

(B) All medical reports and recommendations required by the	3641
system are privileged except that copies of such medical reports	3642
or recommendations shall be made available to the personal	3643
physician, attorney, or authorized agent of the individual	3644
concerned upon written release received from the individual or the	3645
individual's agent, or when necessary for the proper	3646
administration of the fund, to the board assigned physician.	3647

(C) Any person who is a contributor of the system shall be	3648
furnished, on written request, with a statement of the amount to	3649
the credit of the person's account. The board need not answer more	3650
than one such request of a person in any one year.	3651

(D) Notwithstanding the exceptions to public inspection in	3652
division (A)(2) of this section, the board may furnish the	3653
following information:	3654

(1) If a member, former member, contributor, former	3655
contributor, or retirant is subject to an order issued under	3656
section 2907.15 of the Revised Code or is convicted of or pleads	3657
guilty to a violation of section 2921.41 of the Revised Code, on	3658
written request of a prosecutor as defined in section 2935.01 of	3659
the Revised Code, the board shall furnish to the prosecutor the	3660
information requested from the individual's personal history	3661
record.	3662

(2) Pursuant to a court or administrative order issued under	3663
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the	3664
Revised Code, the board shall furnish to a court or child support	3665
enforcement agency the information required under that section.	3666

(3) At the written request of any person, the board shall	3667
provide to the person a list of the names and addresses of	3668
members, former members, retirants, contributors, former	3669
contributors, or beneficiaries. The costs of compiling, copying,	3670
and mailing the list shall be paid by such person.	3671

(4) Within fourteen days after receiving from the director of	3672
job and family services a list of the names and social security	3673
numbers of recipients of public assistance pursuant to section	3674
5101.181 of the Revised Code, the board shall inform the auditor	3675
of state of the name, current or most recent employer address, and	3676
social security number of each contributor whose name and social	3677
security number are the same as that of a person whose name or	3678
social security number was submitted by the director. The board	3679
and its employees shall, except for purposes of furnishing the	3680
auditor of state with information required by this section,	3681
preserve the confidentiality of recipients of public assistance in	3682
compliance with division (A) of section 5101.181 of the Revised	3683
Code.	3684

(5) The system shall comply with orders issued under section	3685
3105.87 of the Revised Code.	3686

On the written request of an alternate payee, as defined in	3687
section 3105.80 of the Revised Code, the system shall furnish to	3688
the alternate payee information on the amount and status of any	3689
amounts payable to the alternate payee under an order issued under	3690
section 3105.171 or 3105.65 of the Revised Code.	3691

(6) At the written request of any person, the board shall	3692
make available to the person copies of all documents, including	3693
resumes, in the board's possession regarding filling a vacancy of	3694
an employee member or retirant member of the board. The person who	3695
made the request shall pay the cost of compiling, copying, and	3696
mailing the documents.	3697

(E) A statement that contains information obtained from the	3698
system's records that is signed by an officer of the retirement	3699
system and to which the system's official seal is affixed, or	3700
copies of the system's records to which the signature and seal are	3701
attached, shall be received as true copies of the system's records	3702
in any court or before any officer of this state.	3703

Sec. 3309.99. Whoever violates section 3309.073 of the	3704
Revised Code shall be fined not more than one hundred dollars for	3705
each day of the violation.	3706

Fines imposed by the Ohio elections commission under this	3707
section shall be paid into the Ohio elections commission fund	3708
created under section 3513.10 of the Revised Code.	3709

Sec. 5505.04.  (A) The general administration and management	3710
of the state highway patrol retirement system and the making	3711
effective of this chapter are hereby vested in the state highway	3712
patrol retirement board. The board may sue and be sued, plead and	3713
be impleaded, contract and be contracted with, and do all things	3714
necessary to carry out this chapter.	3715

The board shall consist of the auditor of state, the director	3716
of budget and management, the superintendent of the state highway	3717
patrol, a retirant-member who is a resident of this state, and	3718
four employee-members.	3719

The board shall annually elect a chairperson and	3720
vice-chairperson from among its members. The vice-chairperson	3721
shall act as chairperson in the absence of the chairperson. A	3722
majority of the members of the board shall constitute a quorum and	3723
any action taken shall be approved by four or more of the members.	3724
The board shall meet not less than once each year, upon sufficient	3725
notice to the members. All meetings of the board shall be open to	3726
the public except executive sessions as set forth in division (G)	3727
of section 121.22 of the Revised Code, and any portions of any	3728
sessions discussing medical records or the degree of disability of	3729
a member excluded from public inspection by this section.	3730

(B) The attorney general shall prescribe procedures for the	3731
adoption of rules authorized under this chapter, consistent with	3732
the provision of section 111.15 of the Revised Code under which	3733
all rules shall be filed in order to be effective. Such procedures	3734
shall establish methods by which notice of proposed rules are	3735
given to interested parties and rules adopted by the board	3736
published and otherwise made available. When it files a rule with	3737
the joint committee on agency rule review pursuant to section	3738
111.15 of the Revised Code, the board shall submit to the Ohio	3739
retirement study council a copy of the full text of the rule, and	3740
if applicable, a copy of the rule summary and fiscal analysis	3741
required by division (B) of section 127.18 of the Revised Code.	3742

(C)(1) Except as provided in division (C)(4) of this section,	3743
the retirant-member of the board shall be elected for a four-year	3744
term by a general election of service and disability retirants	3745
conducted in a manner approved by the board. The term of the	3746
initial retirant-member shall commence in August 1990. A person	3747
who at the time of retirement is an employee-member of the board	3748
is not eligible to become a retirant-member until three years	3749
after such person's retirement date.	3750

(2) Except as provided in division (C)(4) of this section,	3751
employee-members of the board shall be elected for terms of four	3752
years by a general election of contributing members conducted in a	3753
manner approved by the board. The term of office of each	3754
employee-member shall commence in August of the year in which such	3755
member is elected.	3756

(3) Except as provided in division (C)(4) of this section,	3757
any vacancy occurring in the term of the retirant-member or any	3758
employee-member of the board shall be filled by an election	3759
conducted in the same manner as other retirant-member and	3760
employee-member elections. The retirant-member or employee-member	3761
elected shall fill the unexpired term.	3762

(4) The state highway patrol retirement board is not required	3763
to hold an election for a position on the board as a	3764
retirant-member, employee-member, or vacancy for a retirant-member	3765
or employee-member if only one candidate has been nominated for	3766
the position or vacancy in the manner approved by the board. The	3767
candidate shall take office as if elected. In the case of a	3768
retirant-member or employee-member, the term of office shall be	3769
four years beginning in August of the year the candidate was	3770
nominated. In the case of a vacancy, the candidate shall fill the	3771
unexpired term.	3772

(D)(1) As used in this division, "personal history record"	3773
means information maintained by the board on an individual who is	3774
a member, former member, retirant, or beneficiary that includes	3775
the address, telephone number, social security number, record of	3776
contributions, correspondence with the system, and other	3777
information the board determines to be confidential.	3778

(2) The records of the board shall be open to public	3779
inspection, except for the following which shall be excluded: the	3780
member's, former member's, retirant's, or beneficiary's personal	3781
history record and the amount of a monthly allowance or benefit	3782
paid to a retirant, beneficiary, or survivor, except with the	3783
written authorization of the individual concerned. All medical	3784
reports and recommendations are privileged except that copies of	3785
such medical reports or recommendations shall be made available to	3786
the individual's personal physician, attorney, or authorized agent	3787
upon written release received from such individual or such	3788
individual's agent, or when necessary for the proper	3789
administration of the fund to the board-assigned physician.	3790

(E)(D) Notwithstanding the exceptions to public inspection in	3791
division (D)(C)(2) of this section, the board may furnish the	3792
following information:	3793

(1) If a member, former member, or retirant is subject to an	3794
order issued under section 2907.15 of the Revised Code or is	3795
convicted of or pleads guilty to a violation of section 2921.41 of	3796
the Revised Code, on written request of a prosecutor as defined in	3797
section 2935.01 of the Revised Code, the board shall furnish to	3798
the prosecutor the information requested from the individual's	3799
personal history record.	3800

(2) Pursuant to a court order issued under Chapters 3119.,	3801
3121., and 3123. of the Revised Code, the board shall furnish to a	3802
court or child support enforcement agency the information required	3803
under those chapters.	3804

(3) At the written request of any nonprofit organization or	3805
association providing services to retirement system members,	3806
retirants, or beneficiaries, the board shall provide to the	3807
organization or association a list of the names and addresses of	3808
members, former members, retirants, or beneficiaries if the	3809
organization or association agrees to use such information solely	3810
in accordance with its stated purpose of providing services to	3811
such individuals and not for the benefit of other persons,	3812
organizations, or associations. The costs of compiling, copying,	3813
and mailing the list shall be paid by such entity.	3814

(4) Within fourteen days after receiving from the director of	3815
job and family services a list of the names and social security	3816
numbers of recipients of public assistance pursuant to section	3817
5101.181 of the Revised Code, the board shall inform the auditor	3818
of state of the name, current or most recent employer address, and	3819
social security number of each member whose name and social	3820
security number are the same as those of a person whose name or	3821
social security number was submitted by the director. The board	3822
and its employees, except for purposes of furnishing the auditor	3823
of state with information required by this section, shall preserve	3824
the confidentiality of recipients of public assistance in	3825
compliance with division (A) of section 5101.181 of the Revised	3826
Code.	3827

(5) The system shall comply with orders issued under section	3828
3105.87 of the Revised Code.	3829

On the written request of an alternate payee, as defined in	3830
section 3105.80 of the Revised Code, the system shall furnish to	3831
the alternate payee information on the amount and status of any	3832
amounts payable to the alternate payee under an order issued under	3833
section 3105.171 or 3105.65 of the Revised Code.	3834

(6) At the written request of any person, the board shall	3835
make available to the person copies of all documents, including	3836
resumes, in the board's possession regarding filling a vacancy of	3837
an employee member or retirant member of the board. The person who	3838
made the request shall pay the cost of compiling, copying, and	3839
mailing the documents.	3840

(F)(E) A statement that contains information obtained from	3841
the system's records that is certified and signed by an officer of	3842
the retirement system and to which the system's official seal is	3843
affixed, or copies of the system's records to which the signature	3844
and seal are attached, shall be received as true copies of the	3845
system's records in any court or before any officer of this state.	3846

Sec. 5505.041. The state highway patrol retirement board	3847
shall administer elections of the retirant member and employee	3848
members of the board in accordance with rules adopted under	3849
section 111.30 of the Revised Code. A person who at the time of	3850
retirement is an employee member of the board is not eligible to	3851
become a retirant member of the board until three years after the	3852
person's retirement date. Service and disability retirants may	3853
vote in elections for the retirant member of the board.	3854
Contributing members may vote in elections for the employee member	3855
of the board.	3856

On certification of the election results under section 111.30	3857
of the Revised Code, the person elected as the retirant member of	3858
the board or an employee member of the board shall serve a	3859
four-year term beginning on the first day of August following the	3860
election.	3861

Sec. 5505.042. Except as provided in section 5505.043 of the	3862
Revised Code, any vacancy occurring in the term of the retirant	3863
member of the state highway patrol retirement board or an employee	3864
member of the board shall be filled by an election conducted in	3865
the same manner as other retirant member and employee member	3866
elections under section 5505.041 of the Revised Code. On	3867
certification of the election results under section 111.30 of the	3868
Revised Code, the retirant member or employee member elected shall	3869
fill the unexpired term.	3870

Sec. 5505.043. The state highway patrol retirement board is	3871
not required to hold an election for a position on the board as a	3872
retirant member, employee member, or vacancy for a retirant member	3873
or employee member if only one candidate has been nominated for	3874
the position or vacancy in accordance with rules governing the	3875
election adopted under section 111.30 of the Revised Code. The	3876
candidate shall take office as if elected. In the case of a	3877
retirant member or employee member, the term of office shall be	3878
four years beginning in August of the year the candidate was	3879
nominated. In the case of a vacancy, the candidate shall fill the	3880
unexpired term.	3881

Sec. 5505.044. (A) As used in this section:

3882

(1) "Campaign committee" means a candidate or a combination	3883
of two or more persons authorized by a candidate to receive	3884
contributions and in-kind contributions and make expenditures on	3885
behalf of the candidate.	3886

(2) "Candidate" means an individual who has been nominated in	3887
accordance with rules adopted under section 5505.047 of the	3888
Revised Code for election to the state highway patrol retirement	3889
board.	3890

(3) "Contribution" means a loan, gift, deposit, forgiveness	3891
of indebtedness, donation, advance, payment, transfer of funds or	3892
transfer of anything of value including a transfer of funds from	3893
an inter vivos or testamentary trust or decedent's estate, and the	3894
payment by any person other than the person to whom the services	3895
are rendered for the personal services of another person, which	3896
contribution is made, received, or used for the purpose of	3897
influencing the results of an election to the state highway patrol	3898
retirement board under section 5505.041 or 5505.042 of the Revised	3899
Code. "Contribution" does not include:	3900

(a) Services provided without compensation by individuals	3901
volunteering a portion or all of their time on behalf of a person;	3902

(b) Ordinary home hospitality;

3903

(c) The personal expenses of a volunteer paid for by that	3904
volunteer campaign worker.	3905

(4) "Election day" means the following, as appropriate to the	3906
situation:	3907

(a) The last day that ballots for an election to the state	3908
highway patrol retirement board under section 5505.041 or 5505.042	3909
of the Revised Code may be returned in order for the ballot to be	3910
counted;	3911

(b) If, pursuant to section 5505.043 of the Revised Code, no	3912
election is held, the last day that ballots would have been	3913
required to be returned in order to be counted if an election was	3914
to be held under section 5505.041 or 5505.042 of the Revised Code.	3915

(5) "Expenditure" means the disbursement or use of a	3916
contribution for the purpose of influencing the results of an	3917
election to the state highway patrol retirement board under	3918
section 5505.041 or 5505.042 of the Revised Code.	3919

(6) "In-kind contribution" means anything of value other than	3920
money that is used to influence the results of an election to the	3921
state highway patrol retirement board under section 5505.041 or	3922
5505.042 of the Revised Code or is transferred to or used in	3923
support of or in opposition to a candidate and that is made with	3924
the consent of, in coordination, cooperation, or consultation	3925
with, or at the request or suggestion of the benefited candidate.	3926
The financing of the dissemination, distribution, or	3927
republication, in whole or in part, of any broadcast or of any	3928
written, graphic, or other form of campaign materials prepared by	3929
the candidate, the candidate's campaign committee, or their	3930
authorized agents is an in-kind contribution to the candidate and	3931
an expenditure by the candidate.	3932

(7) "Personal expenses" includes ordinary expenses for	3933
accommodations, clothing, food, personal motor vehicle or	3934
airplane, and home telephone.	3935

(B) Each candidate who, or whose campaign committee, receives	3936
a contribution or in-kind contribution or makes an expenditure in	3937
connection with the candidate's efforts to be elected to the state	3938
highway patrol retirement board shall file with the secretary of	3939
state two complete, accurate, and itemized statements setting	3940
forth in detail the contributions, in-kind contributions, and	3941
expenditures. The statements shall be filed regardless of whether	3942
an election is held or, pursuant to section 5505.043 of the	3943
Revised Code, an election is not held. The statements shall be	3944
made on a form prescribed under section 111.30 of the Revised	3945
Code. The first statement shall be filed not later than four p.m.	3946
on the day that is twelve days before election day. The second	3947
statement shall be filed not sooner than the day that is eight	3948
days after election day and not later than thirty-eight days after	3949
election day. The first statement shall reflect contributions and	3950
in-kind contributions received and expenditures made to the close	3951
of business on the twentieth day before election day. The second	3952
statement shall reflect contributions and in-kind contributions	3953
received and expenditures made during the period beginning on the	3954
nineteenth day before election day and ending on the close of	3955
business on the seventh day after election day.	3956

Sec. 5505.045. No person shall knowingly fail to file a	3957
complete and accurate statement in accordance with section	3958
5505.044 of the Revised Code.	3959

Sec. 5505.046. The secretary of state, or any person acting	3960
on personal knowledge and subject to the penalties of perjury, may	3961
file a complaint with the Ohio elections commission alleging a	3962
violation of section 5505.045 of the Revised Code. The complaint	3963
shall be made on a form prescribed and provided by the commission.	3964

On receipt of a complaint under this section, the commission	3965
shall hold a hearing open to the public to determine whether the	3966
violation alleged in the complaint has occurred. The commission	3967
may administer oaths and issue subpoenas to any person in the	3968
state compelling the attendance of witnesses and the production of	3969
relevant papers, books, accounts, and reports. On the refusal of	3970
any person to obey a subpoena or to be sworn or to answer as a	3971
witness, the commission may apply to the court of common pleas of	3972
Franklin county under section 2705.03 of the Revised Code. The	3973
court shall hold proceedings in accordance with Chapter 2705. of	3974
the Revised Code.	3975

The commission shall provide the person accused of the	3976
violation at least seven days prior notice of the time, date, and	3977
place of the hearing. The accused may be represented by an	3978
attorney and shall have an opportunity to present evidence, call	3979
witnesses, and cross-examine witnesses.	3980

At the hearing, the commission shall determine whether the	3981
violation alleged in the complaint has occurred. If the commission	3982
determines that the violation has occurred, the commission shall	3983
either impose a fine under section 5505.99 of the Revised Code or	3984
enter a finding that good cause has been shown not to impose the	3985
fine.	3986

Sec. 5505.048. A member of the state highway patrol	3987
retirement board who is charged with committing a felony, a theft	3988
offense as defined in section 2913.01 of the Revised Code, or a	3989
violation of section 102.02, 102.03, 102.04, 102.07, 2921.02,	3990
2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44	3991
of the Revised Code shall be suspended from participation on the	3992
board for the period during which the charges are pending. If the	3993
charges are dismissed, the member is found not guilty, or the	3994
charges are otherwise resolved in a manner not resulting in the	3995
member being convicted of or pleading guilty to an offense of that	3996
nature, the suspension shall end, and the member may participate	3997
on the board. If the member pleads guilty to or is convicted of	3998
the offense, the position of the member on the board shall be	3999
deemed vacant. A person who has pleaded guilty to or been	4000
convicted of an offense of that nature is ineligible for election	4001
to the state highway patrol retirement board.	4002

The Ohio retirement study council may hold a hearing to	4003
determine whether to remove a member of the state highway patrol	4004
retirement board who has been suspended pursuant to this section.	4005
If it decides to hold a hearing, the council shall provide the	4006
suspended board member at least seven days prior notice of the	4007
time, date, and place of the hearing. The suspended board member	4008
may be represented by an attorney. At the hearing, the suspended	4009
board member, or the suspended board member's attorney, shall have	4010
an opportunity to present evidence, call witnesses, and	4011
cross-examine witnesses. The hearing shall be open to the public.	4012
At the conclusion of the hearing, if the voting members of the	4013
council unanimously vote to remove the suspended board member, the	4014
suspended board member shall be removed from the board, and the	4015
position of the member shall be deemed vacant.	4016

Sec. 5505.062. The state highway patrol retirement board	4017
shall do all of the following:	4018

(A) In consultation with the Ohio ethics commission, review	4019
any existing policy regarding the travel and payment of travel	4020
expenses of members and employees of the state highway patrol	4021
retirement board and adopt rules in accordance with section	4022
5505.04 of the Revised Code establishing a new or revised policy	4023
regarding travel and payment of travel expenses;	4024

(B) Review any existing policy regarding compensation and	4025
bonuses paid to employees of the board and adopt rules in	4026
accordance with section 5505.04 of the Revised Code establishing a	4027
new or revised policy regarding employee compensation and bonuses;	4028

(C) Provide copies of the rules adopted under this section to	4029
each member of the Ohio retirement study council.	4030

Sec. 5505.063. The state highway patrol retirement board	4031
periodically shall provide ethics training to members and	4032
employees of the board. The training shall include training	4033
regarding the requirements and prohibitions of Chapter 102. of the	4034
Revised Code and sections 2921.42 and 2921.43 of the Revised Code	4035
and any other training the board considers appropriate.	4036

The board shall establish a procedure to ensure that each	4037
employee of the board is informed of the procedure for filing a	4038
complaint alleging violation of Chapter 102. of the Revised Code	4039
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	4040
ethics commission or the appropriate prosecuting attorney.	4041

Sec. 5505.064.  Each newly elected member of the state	4042
highway patrol retirement board and each individual appointed to	4043
fill a vacancy on the board, prior to commencing service as a	4044
board member, shall complete the orientation program component of	4045
the retirement board member education program established under	4046
section 171.50 of the Revised Code.	4047

Each member of the board who has served a year or longer as a	4048
board member shall, not less than twice each year, attend one or	4049
more programs that are part of the continuing education component	4050
of the retirement board member education program established under	4051
section 171.50 of the Revised Code.	4052

Sec. 5505.065. The attorney general may maintain a civil	4053
action under section 109.98 of the Revised Code against a member	4054
of the state highway patrol retirement board for harm resulting	4055
from a breach of the member's fiduciary duty.	4056

Sec. 5505.07.  (A) The state highway patrol retirement board	4057
may employ a secretary and secure the services of employees for	4058
the transaction of business of the state highway patrol retirement	4059
system. The	4060

Effective ninety days after the effective date of this	4061
amendment, the board may not employ a state retirement system	4062
investment officer, as defined in section 1707.01 of the Revised	4063
Code, who does not hold a valid state retirement system investment	4064
officer license issued by the division of securities in the	4065
department of commerce.	4066

The compensation of all persons engaged by the board and all	4067
other expenses of the board necessary for the proper operation of	4068
the pension fund shall be paid at such rates and in such amounts	4069
as the board approves. Every expense voucher of an employee,	4070
officer, or board member of the state highway patrol retirement	4071
system shall itemize all purchases and expenditures.	4072

(B) The clerical procedures required in the operation of the	4073
retirement system shall be performed by the staff of the secretary	4074
appointed by the board. The cost of such clerical procedures and	4075
the services performed by the secretary of the retirement system	4076
shall be paid by the retirement system.	4077

(C) The board shall appoint an actuary who shall be its	4078
technical advisor.	4079

(D) The board shall from time to time adopt such mortality	4080
and other tables of experience, and such rate or rates of	4081
interest, as are required in the proper operation of the	4082
retirement system.	4083

(E) The board shall determine by appropriate rules the	4084
service to be credited any member in any calendar year.	4085

The board shall perform other functions and adopt rules as	4086
required for the proper execution of Chapter 5505. of the Revised	4087
Code.	4088

Sec. 5505.122. If the Ohio retirement study council	4089
establishes a uniform format for any report the state highway	4090
patrol retirement board is required to submit to the council, the	4091
board shall submit the report in that format.	4092

Sec. 5505.99. Whoever violates section 5505.045 of the	4093
Revised Code shall be fined not more than one hundred dollars for	4094
each day of the violation.	4095

Fines imposed by the Ohio elections commission under this	4096
section shall be paid into the Ohio elections commission fund	4097
created under section 3513.10 of the Revised Code.	4098

Section 2. That existing sections 102.02, 102.06, 117.10,	4099
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.03,	4100
171.04, 742.03, 742.04, 742.05, 742.10, 742.41, 1707.01, 1707.17,	4101
1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.431, 1707.44,	4102
1707.46, 3307.03, 3307.05, 3307.06, 3309.061, 3307.07, 3307.11,	4103
3307.20, 3309.03, 3309.05, 3309.06, 3309.07, 3309.14, 3309.22,	4104
5505.04, and 5505.07 of the Revised Code are hereby repealed.	4105

Section 3. Section 1707.142 of the Revised Code, as enacted	4106
by this act, shall take effect ninety days after the effective	4107
date of this section.	4108

Section 4. The amendment to sections 3307.05, 3307.06, and	4109
3307.07 of the Revised Code in this act shall not affect the term	4110
of any elected member of the State Teachers Retirement Board	4111
serving on the effective date of this section. The term of the	4112
additional retired teacher member position as created by this act,	4113
shall commence September 1, 2004.	4114

Section 5. The Ohio Ethics Commission has authority to	4115
investigate allegations of violations of Chapter 102. of the	4116
Revised Code or section 2921.42 or 2921.43 of the Revised Code by	4117
members or employees of the state retirement boards. This express	4118
statement of authority is an affirmance of the commission's	4119
authority to conduct these investigations. It does not imply and	4120
shall not be construed to mean that the Ohio Ethics Commission did	4121
not have authority to investigate violations of this nature prior	4122
to the enactment of this act.	4123

Section 6.  Section 742.41 of the Revised Code is presented	4124
in this act as a composite of the section as amended by both Sub.	4125
H.B. 535 and Am. Sub. S.B. 180 of the 123rd General Assembly.	4126
Section 1707.01 of the Revised Code is presented in this act as a	4127
composite of the section as amended by both S.B. 32 and Sub. S.B.	4128
108 of the 124th General Assembly. Section 3307.20 of the Revised	4129
Code is presented in this act as a composite of the section as	4130
amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of the 123rd	4131
General Assembly. Section 3309.22 of the Revised Code is presented	4132
in this act as a composite of the section as amended by Sub. H.B.	4133
535, Sub. S.B. 270, and Am. Sub. S.B. 180 all of the 123rd General	4134
Assembly. Section 5505.04 of the Revised Code is presented in this	4135
act as a composite of the section as amended by both Sub. H.B. 535	4136
and Am. Sub. S.B. 180 of the 123rd General Assembly. The General	4137
Assembly, applying the principle stated in division (B) of section	4138
1.52 of the Revised Code that amendments are to be harmonized if	4139
reasonably capable of simultaneous operation, finds that the	4140
composites are the resulting versions of the sections in effect	4141
prior to the effective dates of the sections as presented in this	4142
act.	4143