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To amend sections 101.34, 101.99, 102.02, 102.03, | 1 |
102.06, 117.10, 145.04, 145.05, 145.051, 145.06, | 2 |
145.09, 145.11, 145.19, 145.193, 145.27, 145.40, | 3 |
171.01, 171.03, 171.04, 742.03, 742.04, 742.05, | 4 |
742.10, 742.11, 742.41, 1707.01, 1707.03, 1707.17, | 5 |
1707.19, 1707.20, 1707.22, 1707.23, 1707.25, | 6 |
1707.261, 1707.39, 1707.431, 1707.44, 1707.46, | 7 |
3105.80, 3305.01, 3305.02, 3305.03, 3305.05, | 8 |
3305.051, 3305.06, 3305.07, 3307.01, 3307.03, | 9 |
3307.05, 3307.06, 3307.07, 3307.071, 3307.10, | 10 |
3307.11, 3307.15, 3307.20, 3307.25, 3307.56, | 11 |
3307.71, 3309.03, 3309.05, 3309.06, 3309.07, | 12 |
3309.09, 3309.14, 3309.15, 3309.22, 3309.251, | 13 |
3309.42, 5505.04, 5505.06, and 5505.07; to amend, | 14 |
for the purpose of adopting new section numbers as | 15 |
indicated in parentheses, sections 145.051 | 16 |
(145.052), 3305.05 (3305.051), 3350.051 | 17 |
(3305.052), and 3309.061 (3309.071); to enact new | 18 |
sections 145.051, 3305.05, and 3309.061; and | 19 |
sections 101.90, 101.91, 101.92, 101.93, 101.94, | 20 |
101.95, 101.96, 101.97, 101.98, 101.981, 109.98, | 21 |
111.30, 145.041, 145.042, 145.053, 145.054, | 22 |
145.055, 145.057, 145.058, 145.092, 145.093, | 23 |
145.094, 145.095, 145.114, 145.115, 145.116, | 24 |
145.99, 171.06, 171.50, 742.031, 742.032, 742.042, | 25 |
742.043, 742.044, 742.045, 742.046, 742.102, | 26 |
742.103, 742.104, 742.105, 742.114, 742.115, | 27 |
742.116, 742.99, 1707.162, 1707.163, 3305.053, | 28 |
3307.041, 3307.042, 3307.043, 3307.044, 3307.051, | 29 |
3307.052, 3307.061, 3307.072, 3307.073, 3307.074, | 30 |
3307.075, 3307.152, 3307.153, 3307.154, 3307.99, | 31 |
3309.041, 3309.042, 3309.043, 3309.044, 3309.051, | 32 |
3309.052, 3309.072, 3309.073, 3309.074, 3309.075, | 33 |
3309.157, 3309.158, 3309.159, 3309.99, 5505.041, | 34 |
5505.042, 5505.043, 5505.044, 5505.045, 5505.046, | 35 |
5505.047, 5505.048, 5505.049, 5505.062, 5505.063, | 36 |
5505.064, 5505.065, 5505.068, 5505.069, 5505.0610, | 37 |
5505.111, 5505.122, and 5505.99 of the Revised | 38 |
Code regarding governance of Ohio's five public | 39 |
retirement systems. | 40 |
Section 1. That sections 101.34, 101.99, 102.02, 102.03, | 41 |
102.06, 117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.11, | 42 |
145.19, 145.193, 145.27, 145.40, 171.01, 171.03, 171.04, 742.03, | 43 |
742.04, 742.05, 742.10, 742.11, 742.41, 1707.01, 1707.03, 1707.17, | 44 |
1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.39, | 45 |
1707.431, 1707.44, 1707.46, 3105.80, 3305.01, 3305.02, 3305.03, | 46 |
3305.05, 3305.051, 3305.06, 3305.07, 3307.01, 3307.03, 3307.05, | 47 |
3307.06, 3307.07, 3307.071, 3307.10, 3307.11, 3307.15, 3307.20, | 48 |
3307.25, 3307.56, 3307.71, 3309.03, 3309.05, 3309.06, 3309.07, | 49 |
3309.09, 3309.14, 3309.15, 3309.22, 3309.251, 3309.42, 5505.04, | 50 |
5505.06, and 5505.07 be amended; sections 145.051 (145.052), | 51 |
3305.05 (3305.051), 3305.051, (3305.052), and 3309.061 (3309.071) | 52 |
be amended for the purpose of adopting new section numbers as | 53 |
indicated in parentheses; and new sections 145.051, 3305.05, and | 54 |
3309.061 and sections 101.90, 101.91, 101.92, 101.93, 101.94, | 55 |
101.95, 101.96, 101.97, 101.98, 101.981, 109.98, 111.30, 145.041, | 56 |
145.042, 145.053, 145.054, 145.055, 145.057, 145.058, 145.092, | 57 |
145.093, 145.094, 145.095, 145.114, 145.115, 145.116, 145.99, | 58 |
171.06, 171.50, 742.031, 742.032, 742.042, 742.043, 742.044, | 59 |
742.045, 742.046, 742.102, 742.103, 742.104, 742.105, 742.114, | 60 |
742.115, 742.116, 742.99, 1707.162, 1707.163, 3305.053, 3307.041, | 61 |
3307.042, 3307.043, 3307.044, 3307.051, 3307.052, 3307.061, | 62 |
3307.072, 3307.073, 3307.074, 3307.075, 3307.152, 3307.153, | 63 |
3307.154, 3307.99, 3309.041, 3309.042, 3309.043, 3309.044, | 64 |
3309.051, 3309.052, 3309.072, 3309.073, 3309.074, 3309.075, | 65 |
3309.157, 3309.158, 3309.159, 3309.99, 5505.041, 5505.042, | 66 |
5505.043, 5505.044, 5505.045, 5505.046, 5505.047, 5505.048, | 67 |
5505.049, 5505.062, 5505.063, 5505.064, 5505.065, 5505.068, | 68 |
5505.069, 5505.0610, 5505.111, 5505.122, and 5505.99 of the | 69 |
Revised Code be enacted to read as follows: | 70 |
Sec. 101.34. (A) There is hereby created a joint legislative | 71 |
ethics committee to serve the general assembly. The committee | 72 |
shall be composed of twelve members, six each from the two major | 73 |
political parties, and each member shall serve on the committee | 74 |
during the member's term as a member of that general assembly. Six | 75 |
members of the committee shall be members of the house of | 76 |
representatives appointed by the speaker of the house of | 77 |
representatives, not more than three from the same political | 78 |
party, and six members of the committee shall be members of the | 79 |
senate appointed by the president of the senate, not more than | 80 |
three from the same political party. A vacancy in the committee | 81 |
shall be filled for the unexpired term in the same manner as an | 82 |
original appointment. The members of the committee shall be | 83 |
appointed within fifteen days after the first day of the first | 84 |
regular session of each general assembly and the committee shall | 85 |
meet and proceed to recommend an ethics code not later than thirty | 86 |
days after the first day of the first regular session of each | 87 |
general assembly. | 88 |
In the first regular session of each general assembly, the | 89 |
speaker of the house of representatives shall appoint the | 90 |
chairperson of the committee from among the house members of the | 91 |
committee and the president of the senate shall appoint the | 92 |
vice-chairperson of the committee from among the senate members of | 93 |
the committee. In the second regular session of each general | 94 |
assembly, the president of the senate shall appoint the | 95 |
chairperson of the committee from among the senate members of the | 96 |
committee and the speaker of the house of representatives shall | 97 |
appoint the vice-chairperson of the committee from among the house | 98 |
members of the committee. The chairperson, vice-chairperson, and | 99 |
members of the committee shall serve until their respective | 100 |
successors are appointed or until they are no longer members of | 101 |
the general assembly. | 102 |
The committee shall meet at the call of the chairperson or | 103 |
upon the written request of seven members of the committee. | 104 |
(B) The joint legislative ethics committee: | 105 |
(1) Shall recommend a code of ethics which is consistent with | 106 |
law to govern all members and employees of each house of the | 107 |
general assembly and all candidates for the office of member of | 108 |
each house; | 109 |
(2) May receive and hear any complaint which alleges a breach | 110 |
of any privilege of either house, or misconduct of any member, | 111 |
employee, or candidate, or any violation of the appropriate code | 112 |
of ethics; | 113 |
(3) May obtain information with respect to any complaint | 114 |
filed pursuant to this section and to that end may enforce the | 115 |
attendance and testimony of witnesses, and the production of books | 116 |
and papers; | 117 |
(4) May recommend whatever sanction is appropriate with | 118 |
respect to a particular member, employee, or candidate as will | 119 |
best maintain in the minds of the public a good opinion of the | 120 |
conduct and character of members and employees of the general | 121 |
assembly; | 122 |
(5) May recommend legislation to the general assembly | 123 |
relating to the conduct and ethics of members and employees of and | 124 |
candidates for the general assembly; | 125 |
(6) Shall employ an executive director for the committee and | 126 |
may employ such other staff as the committee determines necessary | 127 |
to assist it in exercising its powers and duties. The executive | 128 |
director and staff of the committee shall be known as the office | 129 |
of legislative inspector general. At least one member of the staff | 130 |
of the committee shall be an attorney at law licensed to practice | 131 |
law in this state. The appointment and removal of the executive | 132 |
director shall require the approval of at least eight members of | 133 |
the committee. | 134 |
(7) May employ a special counsel to assist the committee in | 135 |
exercising its powers and duties. The appointment and removal of a | 136 |
special counsel shall require the approval of at least eight | 137 |
members of the committee. | 138 |
(8) Shall act as an advisory body to the general assembly and | 139 |
to individual members, candidates, and employees on questions | 140 |
relating to ethics, possible conflicts of interest, and financial | 141 |
disclosure; | 142 |
(9) Shall provide for the proper forms on which the statement | 143 |
required pursuant to section 102.02 of the Revised Code shall be | 144 |
filed and instructions as to the filing of the statement; | 145 |
(10) Exercise the powers and duties prescribed under sections | 146 |
101.70 to 101.79, sections 101.90 to 101.98, and sections 121.60 | 147 |
to 121.69 of the Revised Code; | 148 |
(11) Adopt in accordance with section 111.15 of the Revised | 149 |
Code any rules that are necessary to implement and clarify Chapter | 150 |
102. and sections 2921.42 and 2921.43 of the Revised Code. | 151 |
(C) There is hereby created in the state treasury the joint | 152 |
legislative ethics committee fund. Money credited to the fund and | 153 |
any interest and earnings from the fund shall be used solely for | 154 |
the operation of the joint legislative ethics committee and the | 155 |
office of legislative inspector general and for the purchase of | 156 |
data storage and computerization facilities for the statements | 157 |
filed with the joint committee under sections 101.73, 101.74, | 158 |
121.63, and 121.64 of the Revised Code. | 159 |
(D) The chairperson of the joint committee shall issue a | 160 |
written report, not later than the thirty-first day of January of | 161 |
each year, to the speaker and minority leader of the house of | 162 |
representatives and to the president and minority leader of the | 163 |
senate that lists the number of committee meetings and | 164 |
investigations the committee conducted during the immediately | 165 |
preceding calendar year and the number of advisory opinions it | 166 |
issued during the immediately preceding calendar year. | 167 |
(E) Any investigative report that contains facts and findings | 168 |
regarding a complaint filed with the committee and that is | 169 |
prepared by the staff of the committee or a special counsel to the | 170 |
committee shall become a public record upon its acceptance by a | 171 |
vote of the majority of the members of the committee, except for | 172 |
any names of specific individuals and entities contained in the | 173 |
report. If the committee recommends disciplinary action or reports | 174 |
its findings to the appropriate prosecuting authority for | 175 |
proceedings in prosecution of the violations alleged in the | 176 |
complaint, the investigatory report regarding the complaint shall | 177 |
become a public record in its entirety. | 178 |
(F)(1) Any file obtained by or in the possession of the | 179 |
former house ethics committee or former senate ethics committee | 180 |
shall become the property of the joint legislative ethics | 181 |
committee. Any such file is confidential if either of the | 182 |
following applies: | 183 |
(a) It is confidential under section 102.06 of the Revised | 184 |
Code or the legislative code of ethics. | 185 |
(b) If the file was obtained from the former house ethics | 186 |
committee or from the former senate ethics committee, it was | 187 |
confidential under any statute or any provision of a code of | 188 |
ethics that governed the file. | 189 |
(2) As used in this division, "file" includes, but is not | 190 |
limited to, evidence, documentation, or any other tangible thing. | 191 |
Sec. 101.90. As used in sections 101.90 to 101.99 of the | 192 |
Revised Code: | 193 |
(A) "Person" and "compensation" have the same meanings as in | 194 |
section 101.70 of the Revised Code. | 195 |
(B) "Expenditure" means any of the following that is made to, | 196 |
at the request of, for the benefit of, or on behalf of a state | 197 |
retirement system, a member of the board of a state retirement | 198 |
system, a state retirement system investment official, or an | 199 |
employee of a state retirement system whose position involves | 200 |
substantial and material exercise of discretion in the investment | 201 |
of retirement system funds: | 202 |
(1) A payment, distribution, loan, advance, deposit, | 203 |
reimbursement, or gift of money, real estate, or anything of | 204 |
value, including, but not limited to food and beverages and | 205 |
entertainment; | 206 |
(2) A contract, promise, or agreement to make an expenditure, | 207 |
whether or not legally enforceable; | 208 |
(3) The purchase, sale, or gift of services or any other | 209 |
thing of value. "Expenditure" does not include a contribution, | 210 |
gift, or grant to a foundation or other charitable organization | 211 |
that is exempt from federal income taxation under subsection | 212 |
501(c)(3) of the Internal Revenue Code. "Expenditure" does not | 213 |
include the purchase, sale, or gift of services or any other thing | 214 |
of value that is available to the general public on the same terms | 215 |
as it is available to the persons listed in this division, or an | 216 |
offer or sale of securities to any person listed in this division | 217 |
that is governed by regulation D, 17 C.F.R. 2301.501 to 2301.508, | 218 |
adopted under the authority of the "Securities Act of 1933," 48 | 219 |
Stat. 74, 15 U.S.C.A. and following, or that is governed by a | 220 |
comparable provision under state law. | 221 |
(C) "Employer" means any person who, directly or indirectly, | 222 |
engages a retirement system lobbyist. | 223 |
(D) "Engage" means to make any arrangement, and "engagement" | 224 |
means arrangement, whereby an individual is employed or retained | 225 |
for compensation to act for or on behalf of an employer to | 226 |
influence retirement system decisions or to conduct any retirement | 227 |
system lobbying activity. | 228 |
(E) "Financial transaction" means a transaction or activity | 229 |
that is conducted or undertaken for profit and arises from the | 230 |
joint ownership or the ownership or part ownership in common of | 231 |
any real or personal property or any commercial or business | 232 |
enterprise of whatever form or nature between the following: | 233 |
(1) A retirement system lobbyist, the retirement system | 234 |
lobbyist's employer, or a member of the immediate family of the | 235 |
retirement system lobbyist or the retirement system lobbyist's | 236 |
employer; and | 237 |
(2) A state retirement system, a member of a board of a state | 238 |
retirement system, a state retirement system investment official, | 239 |
or an employee of a state retirement system whose position | 240 |
involves substantial and material exercise of discretion in the | 241 |
investment of retirement system funds. | 242 |
"Financial transaction" does not include any transaction or | 243 |
activity described in division (E) of this section if it is | 244 |
available to the general public on the same terms, or if it is an | 245 |
offer or sale of securities to any person listed in division | 246 |
(E)(2) of this section that is governed by regulation D, 17 C.F.R. | 247 |
2301.501 to 2301.508, adopted under the authority of the | 248 |
"Securities Act of 1933," 48 Stat. 74, 15 U.S.C.A. and following, | 249 |
or that is governed by a comparable provision under state law. | 250 |
(F) "Retirement system" means the public employees retirement | 251 |
system, Ohio police and fire pension fund, state teachers | 252 |
retirement system, school employees retirement system, and state | 253 |
highway patrol retirement system. | 254 |
(G) "Retirement system decision" means a decision of a | 255 |
retirement system regarding the investment of retirement system | 256 |
funds. "Retirement system decision" includes the decision by a | 257 |
board of a retirement system to award a contract to an agent or an | 258 |
investment manager. | 259 |
(H) "Retirement system lobbyist" means any person engaged to | 260 |
influence retirement system decisions or to conduct retirement | 261 |
system lobbying activity as one of the person's main purposes on a | 262 |
regular and substantial basis. "Retirement system lobbyist" does | 263 |
not include an elected or appointed officer or employee of a | 264 |
federal or state agency, or political subdivision who attempts to | 265 |
influence or affect executive agency decisions in a fiduciary | 266 |
capacity as a representative of the officer's or employee's agency | 267 |
or political subdivision. | 268 |
(I) "Retirement system lobbying activity" means contacts made | 269 |
to promote, oppose, reward, or otherwise influence the outcome of | 270 |
a retirement system decision by direct communication with a member | 271 |
of a board of a state retirement system, a state retirement system | 272 |
investment official, or an employee of a state retirement system | 273 |
whose position involves substantial and material exercise of | 274 |
discretion in the investment of retirement system funds. "Lobbying | 275 |
activity" does not include any of the following: | 276 |
(1) The action of any person having a direct interest in | 277 |
retirement system decisions who, under Section 3 of Article I, | 278 |
Ohio Constitution, assembles together with other persons to | 279 |
consult for their common good, instructs a person listed in the | 280 |
first paragraph of division (I) of this section, or petitions such | 281 |
a person for the redress of grievances; | 282 |
(2) Contacts made for the sole purpose of gathering | 283 |
information contained in a public record; | 284 |
(3) Appearances before a retirement system to give testimony. | 285 |
(J) "Retirement system official" means an officer or employee | 286 |
of a retirement system whose principal duties are to formulate | 287 |
policy or to participate directly or indirectly in the | 288 |
preparation, review, or award of financial arrangements with a | 289 |
retirement system. | 290 |
(K) "Aggrieved party" means a party entitled to resort to a | 291 |
remedy. | 292 |
(L) "Staff" means an employee of a retirement system whose | 293 |
position involves substantial and material exercise of discretion | 294 |
in the investment of retirement system funds and who is required | 295 |
under section 102.02 of the Revised Code to file a disclosure | 296 |
statement with the Ohio ethics commission. | 297 |
Sec. 101.91. (A) No person shall knowingly fail to register | 298 |
as required under section 101.92 of the Revised Code. | 299 |
(B) No person shall knowingly fail to keep a receipt or | 300 |
maintain a record that section 101.93 of the Revised Code requires | 301 |
the person to keep or maintain. | 302 |
(C) No person shall knowingly fail to file a statement that | 303 |
section 101.93 or 101.94 of the Revised Code requires the person | 304 |
to file. | 305 |
(D) No person shall knowingly file a false statement that | 306 |
section 101.93 or 101.94 of the Revised Code requires the person | 307 |
to file. | 308 |
Sec. 101.92. (A) Each retirement system lobbyist and each | 309 |
employer shall file with the joint legislative ethics committee, | 310 |
within ten days following the engagement of a retirement system | 311 |
lobbyist, an initial registration statement showing all of the | 312 |
following: | 313 |
(1) The name, business address, and occupation of the | 314 |
retirement system lobbyist; | 315 |
(2) The name and business address of the employer or of the | 316 |
real party in interest on whose behalf the retirement system | 317 |
lobbyist is acting, if it is different from the employer. For the | 318 |
purposes of division (A) of this section, where a trade | 319 |
association or other charitable or fraternal organization that is | 320 |
exempt from federal income taxation under subsection 501(c) of the | 321 |
federal Internal Revenue Code is the employer, the statement need | 322 |
not list the names and addresses of every member of the | 323 |
association or organization, so long as the association or | 324 |
organization itself is listed. | 325 |
(3) A brief description of the retirement system decision to | 326 |
which the engagement relates; | 327 |
(4) The name of the retirement system or systems to which the | 328 |
engagement relates. | 329 |
(B) In addition to the initial registration statement | 330 |
required by division (A) of this section, each retirement system | 331 |
lobbyist and employer shall file with the joint committee, not | 332 |
later than the last day of January, May, and September of each | 333 |
year, an updated registration statement that confirms the | 334 |
continuing existence of each engagement described in an initial | 335 |
registration statement and that lists the specific retirement | 336 |
system decisions that the lobbyist sought to influence under the | 337 |
engagement during the period covered by the updated statement, and | 338 |
with it any statement of expenditures required to be filed by | 339 |
section 101.93 of the Revised Code and any details of financial | 340 |
transactions required to be filed by section 101.94 of the Revised | 341 |
Code. | 342 |
(C) If a retirement system lobbyist is engaged by more than | 343 |
one employer, the lobbyist shall file a separate initial and | 344 |
updated registration statement for each engagement. If an employer | 345 |
engages more than one retirement system lobbyist, the employer | 346 |
need file only one updated registration statement under division | 347 |
(B) of this section, which shall contain the information required | 348 |
by division (B) of this section regarding all of the retirement | 349 |
system lobbyists engaged by the employer. | 350 |
(D)(1) A change in any information required by division | 351 |
(A)(1), (2), or (B) of this section shall be reflected in the next | 352 |
updated registration statement filed under division (B) of this | 353 |
section. | 354 |
(2) Within thirty days following the termination of an | 355 |
engagement, the executive agency lobbyist who was employed under | 356 |
the engagement shall send written notification of the termination | 357 |
to the joint committee. | 358 |
(E) A registration fee of twenty-five dollars shall be | 359 |
charged for filing an initial registration statement. All money | 360 |
collected from this fee shall be deposited into the general | 361 |
revenue fund of the state. | 362 |
(F) Upon registration pursuant to this section, a retirement | 363 |
system lobbyist shall be issued a card by the joint committee | 364 |
showing that the lobbyist is registered. The registration card and | 365 |
the retirement system lobbyist's registration shall be valid from | 366 |
the date of their issuance until the thirty-first day of January | 367 |
of the year following the year in which the initial registration | 368 |
was filed. | 369 |
(G) The executive director of the joint committee shall be | 370 |
responsible for reviewing each registration statement filed with | 371 |
the joint committee under this section and for determining whether | 372 |
the statement contains all of the required information. If the | 373 |
joint committee determines that the registration statement does | 374 |
not contain all of the required information or that a retirement | 375 |
system lobbyist or employer has failed to file a registration | 376 |
statement, the joint committee shall send written notification by | 377 |
certified mail to the person who filed the registration statement | 378 |
regarding the deficiency in the statement or to the person who | 379 |
failed to file the registration statement regarding the failure. | 380 |
Any person so notified by the joint committee shall, not later | 381 |
than fifteen days after receiving the notice, file a registration | 382 |
statement or an amended registration statement that contains all | 383 |
of the required information. If any person who receives a notice | 384 |
under this division fails to file a registration statement or such | 385 |
an amended registration statement within this fifteen-day period, | 386 |
the joint committee shall assess a late filing fee equal to twelve | 387 |
dollars and fifty cents per day, up to a maximum fee of one | 388 |
hundred dollars, upon that person. The joint committee may waive | 389 |
the late filing fee for good cause shown. | 390 |
(H) On or before the fifteenth day of March of each year, the | 391 |
joint committee shall, in the manner and form that it determines, | 392 |
publish a report containing statistical information on the | 393 |
registration statements filed with it under this section during | 394 |
the preceding year. | 395 |
(I) If an employer who engages a retirement system lobbyist | 396 |
is the recipient of a contract, grant, lease, or other financial | 397 |
arrangement pursuant to which funds of the state or of a | 398 |
retirement system are distributed or allocated, the executive | 399 |
agency or any aggrieved party may consider the failure of the | 400 |
employer or the retirement system lobbyist to comply with this | 401 |
section as a breach of a material condition of the contract, | 402 |
grant, lease, or other financial arrangement. | 403 |
(J) Retirement system officials may require certification | 404 |
from any person seeking the award of a contract, grant, lease, or | 405 |
financial arrangement that the person and the person's employer | 406 |
are in compliance with this section. | 407 |
Sec. 101.93. (A) Each retirement system lobbyist and each | 408 |
employer shall file with the joint legislative ethics committee, | 409 |
with the updated registration statement required by division (B) | 410 |
of section 121.62 of the Revised Code, a statement of expenditures | 411 |
as specified in divisions (B) and (C) of this section. A | 412 |
retirement system lobbyist shall file a separate statement of | 413 |
expenditures under this section for each employer that engages the | 414 |
retirement system lobbyist. | 415 |
(B)(1) In addition to the information required by divisions | 416 |
(B)(2) and (3) of this section, a statement filed by a retirement | 417 |
system lobbyist shall show the total amount of expenditures made | 418 |
during the reporting period covered by the statement by the | 419 |
retirement system lobbyist. | 420 |
(2) If, during a reporting period covered by a statement, an | 421 |
employer or any retirement system lobbyist the employer engaged | 422 |
made, either separately or in combination with each other, | 423 |
expenditures to, at the request of, for the benefit of, or on | 424 |
behalf of a member of a board of a state retirement system, a | 425 |
state retirement system investment official, or an employee of a | 426 |
state retirement system whose position involves substantial and | 427 |
material exercise of discretion in the investment of retirement | 428 |
system funds the employer or retirement system lobbyist also shall | 429 |
state the name of the member, official, or employee to whom, at | 430 |
whose request, for whose benefit, or on whose behalf the | 431 |
expenditures were made, the total amount of the expenditures made, | 432 |
a brief description of the expenditures made, the approximate date | 433 |
the expenditures were made, the retirement system decision, if | 434 |
any, sought to be influenced, and the identity of the client on | 435 |
whose behalf the expenditure was made. | 436 |
As used in division (B)(2) of this section, "expenditures" | 437 |
does not include expenditures made by a retirement system lobbyist | 438 |
as payment for meals and other food and beverages. | 439 |
(3) If, during a reporting period covered by a statement, a | 440 |
retirement system lobbyist made expenditures as payment for meals | 441 |
and other food and beverages, that, when added to the amount of | 442 |
previous payments made for meals and other food and beverages by | 443 |
that retirement system lobbyist during that same calendar year, | 444 |
exceeded a total of fifty dollars to, at the request of, for the | 445 |
benefit of, or on behalf of a member of a board of a state | 446 |
retirement system, a state retirement system investment official, | 447 |
or an employee of a state retirement system whose position | 448 |
involves substantial and material exercise of discretion in the | 449 |
investment of retirement system funds, the retirement system | 450 |
lobbyist shall also state regarding those expenditures the name of | 451 |
the member, official, or employee to whom, at whose request, for | 452 |
whose benefit, or on whose behalf the expenditures were made, the | 453 |
total amount of the expenditures made, a brief description of the | 454 |
expenditures made, the approximate date the expenditures were | 455 |
made, the retirement system decision, if any, sought to be | 456 |
influenced, and the identity of the client on whose behalf the | 457 |
expenditure was made. | 458 |
(C) In addition to the information required by divisions | 459 |
(B)(2) and (3) of this section, a statement filed by an employer | 460 |
shall show the total amount of expenditures made by the employer | 461 |
filing the statement during the period covered by the statement. | 462 |
As used in this section, "expenditures" does not include the | 463 |
expenses of maintaining office facilities, or the compensation | 464 |
paid to retirement system lobbyists engaged to influence | 465 |
retirement system decisions or conduct retirement system lobbying | 466 |
activity. | 467 |
No employer shall be required to show any expenditure on a | 468 |
statement filed under this division if the expenditure is reported | 469 |
on a statement filed under division (B)(1), (2), or (3) of this | 470 |
section by a retirement system lobbyist engaged by the employer. | 471 |
(D) Any statement required to be filed under this section | 472 |
shall be filed at the times specified in section 121.62 of the | 473 |
Revised Code. Each statement shall cover expenditures made during | 474 |
the four-calendar-month period that ended on the last day of the | 475 |
month immediately preceding the month in which the statement is | 476 |
required to be filed. | 477 |
(E) If it is impractical or impossible for a retirement | 478 |
system lobbyist or employer to determine exact dollar amounts or | 479 |
values of expenditures, reporting of good faith estimates, based | 480 |
on reasonable accounting procedures, constitutes compliance with | 481 |
this division. | 482 |
(F) Retirement system lobbyists and employers shall retain | 483 |
receipts or maintain records for all expenditures that are | 484 |
required to be reported pursuant to this section. These receipts | 485 |
or records shall be maintained for a period ending on the | 486 |
thirty-first day of December of the second calendar year after the | 487 |
year in which the expenditure was made. | 488 |
(G)(1) At least ten days before the date on which the | 489 |
statement is filed, each employer or retirement system lobbyist | 490 |
who is required to file an expenditure statement under division | 491 |
(B)(2) or (3) of this section shall deliver a copy of the | 492 |
statement, or the portion showing the expenditure, to the member, | 493 |
official, or employee who is listed in the statement as having | 494 |
received the expenditure or on whose behalf it was made. | 495 |
(2) If, during a reporting period covered by an expenditure | 496 |
statement filed under division (B)(2) of this section, an employer | 497 |
or any retirement system lobbyist the employer engaged made, | 498 |
either separately or in combination with each other, either | 499 |
directly or indirectly, expenditures for food and beverages | 500 |
purchased for consumption on the premises in which the food and | 501 |
beverages were sold to, at the request of, for the benefit or, or | 502 |
on behalf of any of the members, officials, or employees described | 503 |
in division (B)(2) of this section, the employer or retirement | 504 |
system lobbyist shall deliver to the member, official, or employee | 505 |
a statement that contains all of the nondisputed information | 506 |
prescribed in division (B)(2) of this section with respect to the | 507 |
expenditures described in division (G)(2) of this section. The | 508 |
statement of expenditures made under division (G)(2) of this | 509 |
section shall be delivered to the member, official, or employee to | 510 |
whom, at whose request, for whose benefit, or on whose behalf | 511 |
those expenditures were made on the same day in which a copy of | 512 |
the expenditure statement or of a portion showing the expenditure | 513 |
is delivered to the member, official, or employee under division | 514 |
(G)(1) of this section. An employer is not required to show any | 515 |
expenditure on a statement delivered under division (G)(2) of this | 516 |
section if the expenditure is shown on a statement delivered under | 517 |
division (G)(2) of this section by a retirement system lobbyist | 518 |
engaged by the employer. | 519 |
Sec. 101.94. (A) Each retirement system lobbyist who has had | 520 |
any financial transaction with or for the benefit of a member of a | 521 |
board of a state retirement system, a state retirement system | 522 |
investment official, or an employee of a state retirement system | 523 |
whose position involves substantial and material exercise of | 524 |
discretion in the investment of retirement system funds shall | 525 |
describe the details of the transaction, including the name of the | 526 |
member, official, or employee, the purpose and nature of the | 527 |
transaction, and the date it was made or entered into, in a | 528 |
statement filed with the joint legislative ethics committee with | 529 |
the updated registration statement required by division (B) of | 530 |
section 101.92 of the Revised Code. The statements shall be filed | 531 |
at the times specified in section 101.92 of the Revised Code. Each | 532 |
statement shall describe each financial transaction that occurred | 533 |
during the four-calendar-month period that ended on the last day | 534 |
of the month immediately preceding the month in which the | 535 |
statement is required to be filed. | 536 |
(B) Except as provided in division (D) of this section, each | 537 |
employer who has had any financial transaction with or for the | 538 |
benefit of a member of a board of a state retirement system, a | 539 |
state retirement system investment official, or an employee of a | 540 |
state retirement system whose position involves substantial and | 541 |
material exercise of discretion in the investment of retirement | 542 |
system funds shall describe the details of the transaction, | 543 |
including the name of the member, official, or employee, the | 544 |
purpose and nature of the transaction, and the date it was made or | 545 |
entered into, in a statement filed with the joint committee with | 546 |
the updated registration statement required by division (B) of | 547 |
section 101.92 of the Revised Code. The statement shall be filed | 548 |
at the times specified in section 101.92 of the Revised Code. Each | 549 |
statement shall describe each financial transaction that occurred | 550 |
during the four-calendar-month period that ended on the last day | 551 |
of the month immediately preceding the month in which the | 552 |
statement is required to be filed. | 553 |
(C) At least ten days before the date on which the statement | 554 |
is filed, each employer or retirement system lobbyist who is | 555 |
required to file a statement describing a financial transaction | 556 |
under this section shall deliver a copy of the statement to the | 557 |
member, official, or employee with whom or for whose benefit the | 558 |
transaction was made. | 559 |
(D) No employer shall be required to file any statement under | 560 |
this section or to deliver a copy of the statement to a member, | 561 |
official, or employee with whom or for whose benefit the | 562 |
transaction was made if the financial transaction to which the | 563 |
statement pertains is reported by a retirement system lobbyist | 564 |
engaged by the employer. | 565 |
Sec. 101.95. If a dispute arises between a member of a board | 566 |
of a state retirement system, a state retirement system investment | 567 |
official, or an employee of a state retirement system whose | 568 |
position involves substantial and material exercise of discretion | 569 |
in the investment of retirement system funds and an employer or | 570 |
retirement system lobbyist with respect to an expenditure or | 571 |
financial transaction alleged in a statement to be filed under | 572 |
section 101.93 or 101.94 of the Revised Code, the member, | 573 |
official, or employee, employer, or retirement system lobbyist may | 574 |
file a complaint with the Ohio ethics commission. The commission | 575 |
shall proceed to investigate the complaint as though it were filed | 576 |
under section 102.06 of the Revised Code. | 577 |
The complaint shall be filed at least three days prior to the | 578 |
time the statement is required to be filed with the joint | 579 |
legislative ethics committee. The time for filing a disputed | 580 |
expenditure or financial transaction in any statement of | 581 |
expenditures or the details of a financial transaction shall be | 582 |
extended pending the final decision of the commission. This | 583 |
extension does not extend the time for filing the nondisputed | 584 |
portions of either type of statement. The commission shall notify | 585 |
the parties of its final decision by certified mail. If the | 586 |
commission decides that the disputed expenditure or financial | 587 |
transaction should be reported, the employer or retirement system | 588 |
lobbyist shall include the matter in an amended statement and file | 589 |
the amended statement not later than ten days after receiving | 590 |
notice of the decision of the commission by certified mail. | 591 |
An employer or retirement system lobbyist who files a false | 592 |
statement of expenditures or details of a financial transaction is | 593 |
liable in a civil action to any member, official, or employee who | 594 |
sustains damage as a result of the filing or publication of the | 595 |
statement. | 596 |
Sec. 101.96. (A) Sections 101.92 and 101.93 of the Revised | 597 |
Code do not apply to efforts to influence retirement system | 598 |
decisions or conduct retirement system lobbying activity by any of | 599 |
the following: | 600 |
(1) Appearances at public hearings of a retirement system or | 601 |
at other public meetings; | 602 |
(2) News, editorial, and advertising statements published in | 603 |
bona fide newspapers, journals, or magazines, or broadcast over | 604 |
radio or television; | 605 |
(3) The gathering and furnishing of information and news by | 606 |
bona fide reporters, correspondents, or news bureaus to news media | 607 |
described in division (A)(2) of this section; | 608 |
(4) Publications primarily designed for and distributed to | 609 |
members of bona fide associations or charitable or fraternal | 610 |
nonprofit corporations. | 611 |
(B) Nothing in sections 101.90 to 101.98 of the Revised Code | 612 |
requires the reporting of, or prohibits a retirement system board | 613 |
member from soliciting or accepting, a contribution from or an | 614 |
expenditure by any person if the contribution or expenditure is | 615 |
reported in accordance with Chapter 3517. of the Revised Code. | 616 |
Sec. 101.97. (A) Except as provided in division (B) of this | 617 |
section, no person shall engage any person to influence retirement | 618 |
system decisions or conduct retirement system lobbying activity | 619 |
for compensation that is contingent in any way on the outcome of a | 620 |
retirement system decision and no person shall accept any | 621 |
engagement to influence retirement system decisions or conduct | 622 |
retirement system lobbying activity for compensation that is | 623 |
contingent in any way on the outcome of a retirement system | 624 |
decision. | 625 |
(B) Division (A) of this section does not prohibit and shall | 626 |
not be construed to prohibit any person from compensating the | 627 |
person's sales employees pursuant to an incentive compensation | 628 |
plan, such as commission sales, if the incentive compensation plan | 629 |
is the same plan used to compensate similarly situated sales | 630 |
employees who are not retirement system lobbyists. | 631 |
Sec. 101.98. (A) The joint legislative ethics committee | 632 |
shall keep on file the statements required by sections 101.92, | 633 |
101.93, and 101.94 of the Revised Code. These statements are | 634 |
public records and open to public inspection, and the joint | 635 |
committee shall computerize them so that the information contained | 636 |
in them is readily accessible to the general public. The joint | 637 |
committee shall provide copies of the statements to the general | 638 |
public on request and may charge a reasonable fee not to exceed | 639 |
the cost of copying and delivering the statement. | 640 |
(B) Not later than the last day of February and October of | 641 |
each year, the joint committee shall compile from the registration | 642 |
statements filed with it a complete and updated list of registered | 643 |
retirement system lobbyists and their employers, and distribute | 644 |
the list to each member of the general assembly, elected executive | 645 |
official, and the director of each retirement system, who shall | 646 |
distribute the list to the appropriate personnel under the | 647 |
director's jurisdiction. The joint committee shall provide copies | 648 |
of the list to the general public on request and may charge a | 649 |
reasonable fee not to exceed the cost of copying and delivering | 650 |
the list. | 651 |
(C) The joint committee shall prescribe and make available an | 652 |
appropriate form for the filings required by sections 101.92, | 653 |
101.93, and 101.94 of the Revised Code. The form shall contain the | 654 |
following notice in boldface type: "ANY PERSON WHO KNOWINGLY FILES | 655 |
A FALSE STATEMENT IS GUILTY OF FALSIFICATION UNDER SECTION 2921.13 | 656 |
OF THE REVISED CODE, WHICH IS A MISDEMEANOR OF THE FIRST DEGREE." | 657 |
(D) The joint committee may adopt rules as necessary to | 658 |
implement sections 101.90 to 101.98 of the Revised Code. The rules | 659 |
shall be adopted in accordance with section 111.15 of the Revised | 660 |
Code. | 661 |
(E) The joint committee shall publish a handbook that | 662 |
explains in clear and concise language the provisions of sections | 663 |
101.90 to 101.98 of the Revised Code and make it available free of | 664 |
charge to retirement system lobbyists, employers, and any other | 665 |
interested persons. | 666 |
Sec. 101.981. The attorney general and any assistant or | 667 |
special counsel designated by the attorney general may investigate | 668 |
compliance with sections 101.90 to 101.98 of the Revised Code in | 669 |
connection with statements required to be filed under these | 670 |
sections and, in the event of an apparent violation, shall report | 671 |
the findings of any such investigation to the prosecuting attorney | 672 |
of Franklin county, who shall institute such proceedings as are | 673 |
appropriate. | 674 |
Sec. 101.99. (A) Whoever violates division (A), (B), or (C) | 675 |
of section 101.71 or of section 101.91, or section 101.77 or | 676 |
101.97 of the Revised Code is guilty of a misdemeanor of the | 677 |
fourth degree. | 678 |
(B) Whoever violates division (D) of section 101.71 or of | 679 |
section 101.91 of the Revised Code is guilty of a misdemeanor of | 680 |
the first degree. | 681 |
Sec. 102.02. (A) Except as otherwise provided in division | 682 |
(H) of this section, all of the following shall file with the | 683 |
appropriate ethics commission the disclosure statement described | 684 |
in this division on a form prescribed by the appropriate | 685 |
commission: every person who is elected to or is a candidate for a | 686 |
state, county, or city office, or the office of member of the | 687 |
United States congress, and every person who is appointed to fill | 688 |
a vacancy for an unexpired term in such an elective office; all | 689 |
members of the state board of education; the director, assistant | 690 |
directors, deputy directors, division chiefs, or persons of | 691 |
equivalent rank of any administrative department of the state; the | 692 |
president or other chief administrative officer of every state | 693 |
institution of higher education as defined in section 3345.011 of | 694 |
the Revised Code; the chief executive officer and the members of | 695 |
the board of each state retirement system; each employee of a | 696 |
state retirement board who is a state retirement system investment | 697 |
officer licensed pursuant to section 1707.163 of the Revised Code; | 698 |
the members of the Ohio retirement study council appointed | 699 |
pursuant to division (C) of section 171.01 of the Revised Code; | 700 |
employees of the Ohio retirement study council, other than | 701 |
employees who perform purely administrative or clerical functions; | 702 |
all members of the board of commissioners on grievances and | 703 |
discipline of the supreme court and the ethics commission created | 704 |
under section 102.05 of the Revised Code; every business manager, | 705 |
treasurer, or superintendent of a city, local, exempted village, | 706 |
joint vocational, or cooperative education school district or an | 707 |
educational service center; every person who is elected to or is a | 708 |
candidate for the office of member of a board of education of a | 709 |
city, local, exempted village, joint vocational, or cooperative | 710 |
education school district or of a governing board of an | 711 |
educational service center that has a total student count of | 712 |
twelve thousand or more as most recently determined by the | 713 |
department of education pursuant to section 3317.03 of the Revised | 714 |
Code; every person who is appointed to the board of education of a | 715 |
municipal school district pursuant to division (B) or (F) of | 716 |
section 3311.71 of the Revised Code; all members of the board of | 717 |
directors of a sanitary district established under Chapter 6115. | 718 |
of the Revised Code and organized wholly for the purpose of | 719 |
providing a water supply for domestic, municipal, and public use | 720 |
that includes two municipal corporations in two counties; every | 721 |
public official or employee who is paid a salary or wage in | 722 |
accordance with schedule C of section 124.15 or schedule E-2 of | 723 |
section 124.152 of the Revised Code; members of the board of | 724 |
trustees and the executive director of the tobacco use prevention | 725 |
and control foundation; members of the board of trustees and the | 726 |
executive director of the southern Ohio agricultural and community | 727 |
development foundation; and every other public official or | 728 |
employee who is designated by the appropriate ethics commission | 729 |
pursuant to
division (B) of this
section | 730 |
731 | |
732 |
The disclosure statement shall include all of the following: | 733 |
(1) The name of the person filing the statement and each | 734 |
member of the person's immediate family and all names under which | 735 |
the person or members of the person's immediate family do | 736 |
business; | 737 |
(2)(a) Subject to divisions (A)(2)(b) and (c) of this section | 738 |
and except as otherwise provided in section 102.022 of the Revised | 739 |
Code, identification of every source of income, other than income | 740 |
from a legislative agent identified in division (A)(2)(b) of this | 741 |
section, received during the preceding calendar year, in the | 742 |
person's own name or by any other person for the person's use or | 743 |
benefit, by the person filing the statement, and a brief | 744 |
description of the nature of the services for which the income was | 745 |
received. If the person filing the statement is a member of the | 746 |
general assembly, the statement shall identify the amount of every | 747 |
source of income received in accordance with the following ranges | 748 |
of amounts: zero or more, but less than one thousand dollars; one | 749 |
thousand dollars or more, but less than ten thousand dollars; ten | 750 |
thousand dollars or more, but less than twenty-five thousand | 751 |
dollars; twenty-five thousand dollars or more, but less than fifty | 752 |
thousand dollars; fifty thousand dollars or more, but less than | 753 |
one hundred thousand dollars; and one hundred thousand dollars or | 754 |
more. Division (A)(2)(a) of this section shall not be construed to | 755 |
require a person filing the statement who derives income from a | 756 |
business or profession to disclose the individual items of income | 757 |
that constitute the gross income of that business or profession, | 758 |
except for those individual items of income that are attributable | 759 |
to the person's or, if the income is shared with the person, the | 760 |
partner's, solicitation of services or goods or performance, | 761 |
arrangement, or facilitation of services or provision of goods on | 762 |
behalf of the business or profession of clients, including | 763 |
corporate clients, who are legislative agents as defined in | 764 |
section 101.70 of the Revised Code. A person who files the | 765 |
statement under this section shall disclose the identity of and | 766 |
the amount of income received from a person who the public | 767 |
official or employee knows or has reason to know is doing or | 768 |
seeking to do business of any kind with the public official's or | 769 |
employee's agency. | 770 |
(b) If the person filing the statement is a member of the | 771 |
general assembly, the statement shall identify every source of | 772 |
income and the amount of that income that was received from a | 773 |
legislative agent, as defined in section 101.70 of the Revised | 774 |
Code, during the preceding calendar year, in the person's own name | 775 |
or by any other person for the person's use or benefit, by the | 776 |
person filing the statement, and a brief description of the nature | 777 |
of the services for which the income was received. Division | 778 |
(A)(2)(b) of this section requires the disclosure of clients of | 779 |
attorneys or persons licensed under section 4732.12 of the Revised | 780 |
Code, or patients of persons certified under section 4731.14 of | 781 |
the Revised Code, if those clients or patients are legislative | 782 |
agents. Division (A)(2)(b) of this section requires a person | 783 |
filing the statement who derives income from a business or | 784 |
profession to disclose those individual items of income that | 785 |
constitute the gross income of that business or profession that | 786 |
are received from legislative agents. | 787 |
(c) Except as otherwise provided in division (A)(2)(c) of | 788 |
this section, division (A)(2)(a) of this section applies to | 789 |
attorneys, physicians, and other persons who engage in the | 790 |
practice of a profession and who, pursuant to a section of the | 791 |
Revised Code, the common law of this state, a code of ethics | 792 |
applicable to the profession, or otherwise, generally are required | 793 |
not to reveal, disclose, or use confidences of clients, patients, | 794 |
or other recipients of professional services except under | 795 |
specified circumstances or generally are required to maintain | 796 |
those types of confidences as privileged communications except | 797 |
under specified circumstances. Division (A)(2)(a) of this section | 798 |
does not require an attorney, physician, or other professional | 799 |
subject to a confidentiality requirement as described in division | 800 |
(A)(2)(c) of this section to disclose the name, other identity, or | 801 |
address of a client, patient, or other recipient of professional | 802 |
services if the disclosure would threaten the client, patient, or | 803 |
other recipient of professional services, would reveal details of | 804 |
the subject matter for which legal, medical, or professional | 805 |
advice or other services were sought, or would reveal an otherwise | 806 |
privileged communication involving the client, patient, or other | 807 |
recipient of professional services. Division (A)(2)(a) of this | 808 |
section does not require an attorney, physician, or other | 809 |
professional subject to a confidentiality requirement as described | 810 |
in division (A)(2)(c) of this section to disclose in the brief | 811 |
description of the nature of services required by division | 812 |
(A)(2)(a) of this section any information pertaining to specific | 813 |
professional services rendered for a client, patient, or other | 814 |
recipient of professional services that would reveal details of | 815 |
the subject matter for which legal, medical, or professional | 816 |
advice was sought or would reveal an otherwise privileged | 817 |
communication involving the client, patient, or other recipient of | 818 |
professional services. | 819 |
(3) The name of every corporation on file with the secretary | 820 |
of state that is incorporated in this state or holds a certificate | 821 |
of compliance authorizing it to do business in this state, trust, | 822 |
business trust, partnership, or association that transacts | 823 |
business in this state in which the person filing the statement or | 824 |
any other person for the person's use and benefit had during the | 825 |
preceding calendar year an investment of over one thousand dollars | 826 |
at fair market value as of the thirty-first day of December of the | 827 |
preceding calendar year, or the date of disposition, whichever is | 828 |
earlier, or in which the person holds any office or has a | 829 |
fiduciary relationship, and a description of the nature of the | 830 |
investment, office, or relationship. Division (A)(3) of this | 831 |
section does not require disclosure of the name of any bank, | 832 |
savings and loan association, credit union, or building and loan | 833 |
association with which the person filing the statement has a | 834 |
deposit or a withdrawable share account. | 835 |
(4) All fee simple and leasehold interests to which the | 836 |
person filing the statement holds legal title to or a beneficial | 837 |
interest in real property located within the state, excluding the | 838 |
person's residence and property used primarily for personal | 839 |
recreation; | 840 |
(5) The names of all persons residing or transacting business | 841 |
in the state to whom the person filing the statement owes, in the | 842 |
person's own name or in the name of any other person, more than | 843 |
one thousand dollars. Division (A)(5) of this section shall not be | 844 |
construed to require the disclosure of debts owed by the person | 845 |
resulting from the ordinary conduct of a business or profession or | 846 |
debts on the person's residence or real property used primarily | 847 |
for personal recreation, except that the superintendent of | 848 |
financial institutions shall disclose the names of all | 849 |
state-chartered savings and loan associations and of all service | 850 |
corporations subject to regulation under division (E)(2) of | 851 |
section 1151.34 of the Revised Code to whom the superintendent in | 852 |
the superintendent's own name or in the name of any other person | 853 |
owes any money, and that the superintendent and any deputy | 854 |
superintendent of banks shall disclose the names of all | 855 |
state-chartered banks and all bank subsidiary corporations subject | 856 |
to regulation under section 1109.44 of the Revised Code to whom | 857 |
the superintendent or deputy superintendent owes any money. | 858 |
(6) The names of all persons residing or transacting business | 859 |
in the state, other than a depository excluded under division | 860 |
(A)(3) of this section, who owe more than one thousand dollars to | 861 |
the person filing the statement, either in the person's own name | 862 |
or to any person for the person's use or benefit. Division (A)(6) | 863 |
of this section shall not be construed to require the disclosure | 864 |
of clients of attorneys or persons licensed under section 4732.12 | 865 |
or 4732.15 of the Revised Code, or patients of persons certified | 866 |
under section 4731.14 of the Revised Code, nor the disclosure of | 867 |
debts owed to the person resulting from the ordinary conduct of a | 868 |
business or profession. | 869 |
(7) Except as otherwise provided in section 102.022 of the | 870 |
Revised Code, the source of each gift of over seventy-five | 871 |
dollars, or of each gift of over twenty-five dollars received by a | 872 |
member of the general assembly from a legislative agent, received | 873 |
by the person in the person's own name or by any other person for | 874 |
the person's use or benefit during the preceding calendar year, | 875 |
except gifts received by will or by virtue of section 2105.06 of | 876 |
the Revised Code, or received from spouses, parents, grandparents, | 877 |
children, grandchildren, siblings, nephews, nieces, uncles, aunts, | 878 |
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law, | 879 |
fathers-in-law, mothers-in-law, or any person to whom the person | 880 |
filing the statement stands in loco parentis, or received by way | 881 |
of distribution from any inter vivos or testamentary trust | 882 |
established by a spouse or by an ancestor; | 883 |
(8) Except as otherwise provided in section 102.022 of the | 884 |
Revised Code, identification of the source and amount of every | 885 |
payment of expenses incurred for travel to destinations inside or | 886 |
outside this state that is received by the person in the person's | 887 |
own name or by any other person for the person's use or benefit | 888 |
and that is incurred in connection with the person's official | 889 |
duties, except for expenses for travel to meetings or conventions | 890 |
of a national or state organization to which any state agency, | 891 |
including, but not limited to, any legislative agency or state | 892 |
institution of higher education as defined in section 3345.011 of | 893 |
the Revised Code, pays membership dues, or any political | 894 |
subdivision or any office or agency of a political subdivision | 895 |
pays membership dues; | 896 |
(9) Except as otherwise provided in section 102.022 of the | 897 |
Revised Code, identification of the source of payment of expenses | 898 |
for meals and other food and beverages, other than for meals and | 899 |
other food and beverages provided at a meeting at which the person | 900 |
participated in a panel, seminar, or speaking engagement or at a | 901 |
meeting or convention of a national or state organization to which | 902 |
any state agency, including, but not limited to, any legislative | 903 |
agency or state institution of higher education as defined in | 904 |
section 3345.011 of the Revised Code, pays membership dues, or any | 905 |
political subdivision or any office or agency of a political | 906 |
subdivision pays membership dues, that are incurred in connection | 907 |
with the person's official duties and that exceed one hundred | 908 |
dollars aggregated per calendar year; | 909 |
(10) If the financial disclosure statement is filed by a | 910 |
public official or employee described in division (B)(2) of | 911 |
section 101.73 of the Revised Code or division (B)(2) of section | 912 |
121.63 of the Revised Code who receives a statement from a | 913 |
legislative agent, executive agency lobbyist, or employer that | 914 |
contains the information described in division (F)(2) of section | 915 |
101.73 of the Revised Code or division (G)(2) of section 121.63 of | 916 |
the Revised Code, all of the nondisputed information contained in | 917 |
the statement delivered to that public official or employee by the | 918 |
legislative agent, executive agency lobbyist, or employer under | 919 |
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of | 920 |
the Revised Code. As used in division (A)(10) of this section, | 921 |
"legislative agent," "executive agency lobbyist," and "employer" | 922 |
have the same meanings as in sections 101.70 and 121.60 of the | 923 |
Revised Code. | 924 |
A person may file a statement required by this section in | 925 |
person or by mail. A person who is a candidate for elective office | 926 |
shall file the statement no later than the thirtieth day before | 927 |
the primary, special, or general election at which the candidacy | 928 |
is to be voted on, whichever election occurs soonest, except that | 929 |
a person who is a write-in candidate shall file the statement no | 930 |
later than the twentieth day before the earliest election at which | 931 |
the person's candidacy is to be voted on. A person who holds | 932 |
elective office shall file the statement on or before the | 933 |
fifteenth day of April of each year unless the person is a | 934 |
candidate for office. A person who is appointed to fill a vacancy | 935 |
for an unexpired term in an elective office shall file the | 936 |
statement within fifteen days after the person qualifies for | 937 |
office. Other persons shall file an annual statement on or before | 938 |
the fifteenth day of April or, if appointed or employed after that | 939 |
date, within ninety days after appointment or employment. No | 940 |
person shall be required to file with the appropriate ethics | 941 |
commission more than one statement or pay more than one filing fee | 942 |
for any one calendar year. | 943 |
The appropriate ethics commission, for good cause, may extend | 944 |
for a reasonable time the deadline for filing a statement under | 945 |
this section. | 946 |
A statement filed under this section is subject to public | 947 |
inspection at locations designated by the appropriate ethics | 948 |
commission except as otherwise provided in this section. | 949 |
(B) The Ohio ethics commission, the joint legislative ethics | 950 |
committee, and the board of commissioners on grievances and | 951 |
discipline of the supreme court, using the rule-making procedures | 952 |
of Chapter 119. of the Revised Code, may require any class of | 953 |
public officials or employees under its jurisdiction and not | 954 |
specifically excluded by this section whose positions involve a | 955 |
substantial and material exercise of administrative discretion in | 956 |
the formulation of public policy, expenditure of public funds, | 957 |
enforcement of laws and rules of the state or a county or city, or | 958 |
the execution of other public trusts, to file an annual statement | 959 |
on or before the fifteenth day of April under division (A) of this | 960 |
section. The appropriate ethics commission shall send the public | 961 |
officials or employees written notice of the requirement by the | 962 |
fifteenth day of February of each year the filing is required | 963 |
unless the public official or employee is appointed after that | 964 |
date, in which case the notice shall be sent within thirty days | 965 |
after appointment, and the filing shall be made not later than | 966 |
ninety days after appointment. | 967 |
Except for disclosure statements filed by members of the | 968 |
board of trustees and the executive director of the tobacco use | 969 |
prevention and control foundation and members of the board of | 970 |
trustees and the executive director of the southern Ohio | 971 |
agricultural and community development foundation, disclosure | 972 |
statements filed under this division with the Ohio ethics | 973 |
commission by members of boards, commissions, or bureaus of the | 974 |
state for which no compensation is received other than reasonable | 975 |
and necessary expenses shall be kept confidential. Disclosure | 976 |
statements filed with the Ohio ethics commission under division | 977 |
(A) of this section by business managers, treasurers, and | 978 |
superintendents of city, local, exempted village, joint | 979 |
vocational, or cooperative education school districts or | 980 |
educational service centers shall be kept confidential, except | 981 |
that any person conducting an audit of any such school district or | 982 |
educational service center pursuant to section 115.56 or Chapter | 983 |
117. of the Revised Code may examine the disclosure statement of | 984 |
any business manager, treasurer, or superintendent of that school | 985 |
district or educational service center. The Ohio ethics commission | 986 |
shall examine each disclosure statement required to be kept | 987 |
confidential to determine whether a potential conflict of interest | 988 |
exists for the person who filed the disclosure statement. A | 989 |
potential conflict of interest exists if the private interests of | 990 |
the person, as indicated by the person's disclosure statement, | 991 |
might interfere with the public interests the person is required | 992 |
to serve in the exercise of the person's authority and duties in | 993 |
the person's office or position of employment. If the commission | 994 |
determines that a potential conflict of interest exists, it shall | 995 |
notify the person who filed the disclosure statement and shall | 996 |
make the portions of the disclosure statement that indicate a | 997 |
potential conflict of interest subject to public inspection in the | 998 |
same manner as is provided for other disclosure statements. Any | 999 |
portion of the disclosure statement that the commission determines | 1000 |
does not indicate a potential conflict of interest shall be kept | 1001 |
confidential by the commission and shall not be made subject to | 1002 |
public inspection, except as is necessary for the enforcement of | 1003 |
Chapters 102. and 2921. of the Revised Code and except as | 1004 |
otherwise provided in this division. | 1005 |
(C) No person shall knowingly fail to file, on or before the | 1006 |
applicable filing deadline established under this section, a | 1007 |
statement that is required by this section. | 1008 |
(D) No person shall knowingly file a false statement that is | 1009 |
required to be filed under this section. | 1010 |
(E)(1) Except as provided in divisions (E)(2) and (3) of this | 1011 |
section, the statement required by division (A) or (B) of this | 1012 |
section shall be accompanied by a filing fee of forty dollars. | 1013 |
(2) The statement required by division (A) of this section | 1014 |
shall be accompanied by the following filing fee to be paid by the | 1015 |
person who is elected or appointed to, or is a candidate for, any | 1016 |
of the following offices: | 1017 |
For state office, except member of the | 1018 | ||||
state board of education | $65 | 1019 | |||
For office of member of United States | 1020 | ||||
congress or member of general assembly | $40 | 1021 | |||
For county office | $40 | 1022 | |||
For city office | $25 | 1023 | |||
For office of member of the state board | 1024 | ||||
of education | $25 | 1025 | |||
For office of member of a city, local, | 1026 | ||||
exempted village, or cooperative | 1027 | ||||
education board of | 1028 | ||||
education or educational service | 1029 | ||||
center governing board | $20 | 1030 | |||
For position of business manager, | 1031 | ||||
treasurer, or superintendent of a | 1032 | ||||
city, local, exempted village, joint | 1033 | ||||
vocational, or cooperative education | 1034 | ||||
school district or | 1035 | ||||
educational service center | $20 | 1036 |
(3) No judge of a court of record or candidate for judge of a | 1037 |
court of record, and no referee or magistrate serving a court of | 1038 |
record, shall be required to pay the fee required under division | 1039 |
(E)(1) or (2) or (F) of this section. | 1040 |
(4) For any public official who is appointed to a nonelective | 1041 |
office of the state and for any employee who holds a nonelective | 1042 |
position in a public agency of the state, the state agency that is | 1043 |
the primary employer of the state official or employee shall pay | 1044 |
the fee required under division (E)(1) or (F) of this section. | 1045 |
(F) If a statement required to be filed under this section is | 1046 |
not filed by the date on which it is required to be filed, the | 1047 |
appropriate ethics commission shall assess the person required to | 1048 |
file the statement a late filing fee of ten dollars for each day | 1049 |
the statement is not filed, except that the total amount of the | 1050 |
late filing fee shall not exceed two hundred fifty dollars. | 1051 |
(G)(1) The appropriate ethics commission other than the Ohio | 1052 |
ethics commission shall deposit all fees it receives under | 1053 |
divisions (E) and (F) of this section into the general revenue | 1054 |
fund of the state. | 1055 |
(2) The Ohio ethics commission shall deposit all receipts, | 1056 |
including, but not limited to, fees it receives under divisions | 1057 |
(E) and (F) of this section and all moneys it receives from | 1058 |
settlements under division (G) of section 102.06 of the Revised | 1059 |
Code, into the Ohio ethics commission fund, which is hereby | 1060 |
created in the state treasury. All moneys credited to the fund | 1061 |
shall be used solely for expenses related to the operation and | 1062 |
statutory functions of the commission. | 1063 |
(H) Division (A) of this section does not apply to a person | 1064 |
elected or appointed to the office of precinct, ward, or district | 1065 |
committee member under Chapter 3517. of the Revised Code; a | 1066 |
presidential elector; a delegate to a national convention; village | 1067 |
or township officials and employees; any physician or psychiatrist | 1068 |
who is paid a salary or wage in accordance with schedule C of | 1069 |
section 124.15 or schedule E-2 of section 124.152 of the Revised | 1070 |
Code and whose primary duties do not require the exercise of | 1071 |
administrative discretion; or any member of a board, commission, | 1072 |
or bureau of any county or city who receives less than one | 1073 |
thousand dollars per year for serving in that position. | 1074 |
Sec. 102.03. (A)(1) No present or former public official or | 1075 |
employee shall, during public employment or service or for twelve | 1076 |
months thereafter, represent a client or act in a representative | 1077 |
capacity for any person on any matter in which the public official | 1078 |
or employee personally participated as a public official or | 1079 |
employee through decision, approval, disapproval, recommendation, | 1080 |
the rendering of advice, investigation, or other substantial | 1081 |
exercise of administrative discretion. | 1082 |
(2) For twenty-four months after the conclusion of service, | 1083 |
no former commissioner or attorney examiner of the public | 1084 |
utilities commission shall represent a public utility, as defined | 1085 |
in section 4905.02 of the Revised Code, or act in a representative | 1086 |
capacity on behalf of such a utility before any state board, | 1087 |
commission, or agency. | 1088 |
(3) For twenty-four months after the conclusion of employment | 1089 |
or service, no former public official or employee who personally | 1090 |
participated as a public official or employee through decision, | 1091 |
approval, disapproval, recommendation, the rendering of advice, | 1092 |
the development or adoption of solid waste management plans, | 1093 |
investigation, inspection, or other substantial exercise of | 1094 |
administrative discretion under Chapter 343. or 3734. of the | 1095 |
Revised Code shall represent a person who is the owner or operator | 1096 |
of a facility, as defined in section 3734.01 of the Revised Code, | 1097 |
or who is an applicant for a permit or license for a facility | 1098 |
under that chapter, on any matter in which the public official or | 1099 |
employee personally participated as a public official or employee. | 1100 |
(4) For a period of one year after the conclusion of | 1101 |
employment or service as a member or employee of the general | 1102 |
assembly, no former member or employee of the general assembly | 1103 |
shall represent, or act in a representative capacity for, any | 1104 |
person on any matter before the general assembly, any committee of | 1105 |
the general assembly, or the controlling board. Division (A)(4) of | 1106 |
this section does not apply to or affect a person who separates | 1107 |
from service with the general assembly on or before December 31, | 1108 |
1995. As used in division (A)(4) of this section "person" does not | 1109 |
include any state agency or political subdivision of the state. | 1110 |
(5) As used in divisions (A)(1), (2), and (3) of this | 1111 |
section, "matter" includes any case, proceeding, application, | 1112 |
determination, issue, or question, but does not include the | 1113 |
proposal, consideration, or enactment of statutes, rules, | 1114 |
ordinances, resolutions, or charter or constitutional amendments. | 1115 |
As used in division (A)(4) of this section, "matter" includes the | 1116 |
proposal, consideration, or enactment of statutes, resolutions, or | 1117 |
constitutional amendments. As used in division (A) of this | 1118 |
section, "represent" includes any formal or informal appearance | 1119 |
before, or any written or oral communication with, any public | 1120 |
agency on behalf of any person. | 1121 |
(6) Nothing contained in division (A) of this section shall | 1122 |
prohibit, during such period, a former public official or employee | 1123 |
from being retained or employed to represent, assist, or act in a | 1124 |
representative capacity for the public agency by which the public | 1125 |
official or employee was employed or on which the public official | 1126 |
or employee served. | 1127 |
(7) Division (A) of this section shall not be construed to | 1128 |
prohibit the performance of ministerial functions, including, but | 1129 |
not limited to, the filing or amendment of tax returns, | 1130 |
applications for permits and licenses, incorporation papers, and | 1131 |
other similar documents. | 1132 |
(B) No present or former public official or employee shall | 1133 |
disclose or use, without appropriate authorization, any | 1134 |
information acquired by the public official or employee in the | 1135 |
course of the public official's or employee's official duties that | 1136 |
is confidential because of statutory provisions, or that has been | 1137 |
clearly designated to the public official or employee as | 1138 |
confidential when that confidential designation is warranted | 1139 |
because of the status of the proceedings or the circumstances | 1140 |
under which the information was received and preserving its | 1141 |
confidentiality is necessary to the proper conduct of government | 1142 |
business. | 1143 |
(C) No public official or employee shall participate within | 1144 |
the scope of duties as a public official or employee, except | 1145 |
through ministerial functions as defined in division (A) of this | 1146 |
section, in any license or rate-making proceeding that directly | 1147 |
affects the license or rates of any person, partnership, trust, | 1148 |
business trust, corporation, or association in which the public | 1149 |
official or employee or immediate family owns or controls more | 1150 |
than five per cent. No public official or employee shall | 1151 |
participate within the scope of duties as a public official or | 1152 |
employee, except through ministerial functions as defined in | 1153 |
division (A) of this section, in any license or rate-making | 1154 |
proceeding that directly affects the license or rates of any | 1155 |
person to whom the public official or employee or immediate | 1156 |
family, or a partnership, trust, business trust, corporation, or | 1157 |
association of which the public official or employee or the public | 1158 |
official's or employee's immediate family owns or controls more | 1159 |
than five per cent, has sold goods or services totaling more than | 1160 |
one thousand dollars during the preceding year, unless the public | 1161 |
official or employee has filed a written statement acknowledging | 1162 |
that sale with the clerk or secretary of the public agency and the | 1163 |
statement is entered in any public record of the agency's | 1164 |
proceedings. This division shall not be construed to require the | 1165 |
disclosure of clients of attorneys or persons licensed under | 1166 |
section 4732.12 or 4732.15 of the Revised Code, or patients of | 1167 |
persons certified under section 4731.14 of the Revised Code. | 1168 |
(D) No public official or employee shall use or authorize the | 1169 |
use of the authority or influence of office or employment to | 1170 |
secure anything of value or the promise or offer of anything of | 1171 |
value that is of such a character as to manifest a substantial and | 1172 |
improper influence upon the public official or employee with | 1173 |
respect to that person's duties. | 1174 |
(E) No public official or employee shall solicit or accept | 1175 |
anything of value that is of such a character as to manifest a | 1176 |
substantial and improper influence upon the public official or | 1177 |
employee with respect to that person's duties. | 1178 |
(F) No person shall promise or give to a public official or | 1179 |
employee anything of value that is of such a character as to | 1180 |
manifest a substantial and improper influence upon the public | 1181 |
official or employee with respect to that person's duties. | 1182 |
(G) In the absence of bribery or another offense under the | 1183 |
Revised Code or a purpose to defraud, contributions made to a | 1184 |
campaign committee, political party, legislative campaign fund, | 1185 |
political action committee, or political contributing entity on | 1186 |
behalf of an elected public officer or other public official or | 1187 |
employee who seeks elective office shall be considered to accrue | 1188 |
ordinarily to the public official or employee for the purposes of | 1189 |
divisions (D), (E), and (F) of this section. | 1190 |
As used in this division, "contributions," "campaign | 1191 |
committee," "political party," "legislative campaign fund," | 1192 |
"political action committee," and "political contributing entity" | 1193 |
have the same meanings as in section 3517.01 of the Revised Code. | 1194 |
(H)(1) No public official or employee, except for the | 1195 |
president or other chief administrative officer of or a member of | 1196 |
a board of trustees of a state institution of higher education as | 1197 |
defined in section 3345.011 of the Revised Code, who is required | 1198 |
to file a financial disclosure statement under section 102.02 of | 1199 |
the Revised Code shall solicit or accept, and no person shall give | 1200 |
to that
public official or employee, an honorarium. | 1201 |
provided in division (H)(2) of this section, this division and | 1202 |
divisions (D), (E), and (F) of this section do not prohibit a | 1203 |
public official or employee who is required to file a financial | 1204 |
disclosure statement under section 102.02 of the Revised Code from | 1205 |
accepting and do not prohibit a person from giving to that public | 1206 |
official or employee the payment of actual travel expenses, | 1207 |
including any expenses incurred in connection with the travel for | 1208 |
lodging, and meals, food, and beverages provided to the public | 1209 |
official or employee at a meeting at which the public official or | 1210 |
employee participates in a panel, seminar, or speaking engagement | 1211 |
or provided to the public official or employee at a meeting or | 1212 |
convention of a national organization to which any state agency, | 1213 |
including, but not limited to, any state legislative agency or | 1214 |
state institution of higher education as defined in section | 1215 |
3345.011 of the Revised Code, pays membership dues. | 1216 |
provided in division (H)(2) of this section, this division and | 1217 |
divisions (D), (E), and (F) of this section do not prohibit a | 1218 |
public official or employee who is not required to file a | 1219 |
financial disclosure statement under section 102.02 of the Revised | 1220 |
Code from accepting and do not prohibit a person from promising or | 1221 |
giving to that public official or employee an honorarium or the | 1222 |
payment of travel, meal, and lodging expenses if the honorarium, | 1223 |
expenses, or both were paid in recognition of demonstrable | 1224 |
business, professional, or esthetic interests of the public | 1225 |
official or employee that exist apart from public office or | 1226 |
employment, including, but not limited to, such a demonstrable | 1227 |
interest in public speaking and were not paid by any person or | 1228 |
other entity, or by any representative or association of those | 1229 |
persons or entities, that is regulated by, doing business with, or | 1230 |
seeking to do business with the department, division, institution, | 1231 |
board, commission, authority, bureau, or other instrumentality of | 1232 |
the governmental entity with which the public official or employee | 1233 |
serves. | 1234 |
(2) No person who is a member of the board of a state | 1235 |
retirement system, a state retirement system investment officer, | 1236 |
or an employee of a state retirement system whose position | 1237 |
involves substantial and material exercise of discretion in the | 1238 |
investment of retirement system funds shall solicit or accept, and | 1239 |
no person shall give to that board member, officer, or employee, | 1240 |
payment of actual travel expenses, including expenses incurred | 1241 |
with the travel for lodging, meals, food, and beverages. | 1242 |
(I) A public official or employee may accept travel, meals, | 1243 |
and lodging or expenses or reimbursement of expenses for travel, | 1244 |
meals, and lodging in connection with conferences, seminars, and | 1245 |
similar events related to official duties if the travel, meals, | 1246 |
and lodging, expenses, or reimbursement is not of such a character | 1247 |
as to manifest a substantial and improper influence upon the | 1248 |
public official or employee with respect to that person's duties. | 1249 |
The house of representatives and senate, in their code of ethics, | 1250 |
and the Ohio ethics commission, under section 111.15 of the | 1251 |
Revised Code, may adopt rules setting standards and conditions for | 1252 |
the furnishing and acceptance of such travel, meals, and lodging, | 1253 |
expenses, or reimbursement. | 1254 |
A person who acts in compliance with this division and any | 1255 |
applicable rules adopted under it, or any applicable, similar | 1256 |
rules adopted by the supreme court governing judicial officers and | 1257 |
employees, does not violate division (D), (E), or (F) of this | 1258 |
section. This division does not preclude any person from seeking | 1259 |
an advisory opinion from the appropriate ethics commission under | 1260 |
section 102.08 of the Revised Code. | 1261 |
(J) For purposes of divisions (D), (E), and (F) of this | 1262 |
section, the membership of a public official or employee in an | 1263 |
organization shall not be considered, in and of itself, to be of | 1264 |
such a character as to manifest a substantial and improper | 1265 |
influence on the public official or employee with respect to that | 1266 |
person's duties. As used in this division, "organization" means a | 1267 |
church or a religious, benevolent, fraternal, or professional | 1268 |
organization that is tax exempt under subsection 501(a) and | 1269 |
described in subsection 501(c)(3), (4), (8), (10), or (19) of the | 1270 |
"Internal Revenue Code of 1986." This division does not apply to a | 1271 |
public official or employee who is an employee of an organization, | 1272 |
serves as a trustee, director, or officer of an organization, or | 1273 |
otherwise holds a fiduciary relationship with an organization. | 1274 |
This division does not allow a public official or employee who is | 1275 |
a member of an organization to participate, formally or | 1276 |
informally, in deliberations, discussions, or voting on a matter | 1277 |
or to use his official position with regard to the interests of | 1278 |
the organization on the matter if the public official or employee | 1279 |
has assumed a particular responsibility in the organization with | 1280 |
respect to the matter or if the matter would affect that person's | 1281 |
personal, pecuniary interests. | 1282 |
(K) It is not a violation of this section for a prosecuting | 1283 |
attorney to appoint assistants and employees in accordance with | 1284 |
division (B) of section 309.06 and section 2921.421 of the Revised | 1285 |
Code, for a chief legal officer of a municipal corporation or an | 1286 |
official designated as prosecutor in a municipal corporation to | 1287 |
appoint assistants and employees in accordance with sections | 1288 |
733.621 and 2921.421 of the Revised Code, for a township law | 1289 |
director appointed under section 504.15 of the Revised Code to | 1290 |
appoint assistants and employees in accordance with sections | 1291 |
504.151 and 2921.421 of the Revised Code, or for a coroner to | 1292 |
appoint assistants and employees in accordance with division (B) | 1293 |
of section 313.05 of the Revised Code. | 1294 |
As used in this division, "chief legal officer" has the same | 1295 |
meaning as in section 733.621 of the Revised Code. | 1296 |
Sec. 102.06. (A) The appropriate ethics commission shall | 1297 |
receive and may initiate complaints against persons subject to | 1298 |
Chapter 102. of the Revised Code concerning conduct alleged to be | 1299 |
in violation of this chapter or section 2921.42 or 2921.43 of the | 1300 |
Revised Code. All complaints except those by the commission shall | 1301 |
be by affidavit made on personal knowledge, subject to the | 1302 |
penalties of perjury. Complaints by the commission shall be by | 1303 |
affidavit, based upon reasonable cause to believe that a violation | 1304 |
has occurred. | 1305 |
(B) The commission shall investigate complaints, may | 1306 |
investigate charges presented to it, and may request further | 1307 |
information, including the specific amount of income from a | 1308 |
source, from any person filing with the commission a statement | 1309 |
required by section 102.02 of the Revised Code, if the information | 1310 |
sought is directly relevant to a complaint or charges received by | 1311 |
the commission pursuant to this section. This information is | 1312 |
confidential, except that the commission, at its discretion, may | 1313 |
share information gathered in the course of any investigation | 1314 |
with, or disclose the information to, the inspector general, any | 1315 |
appropriate prosecuting authority, any law enforcement agency, or | 1316 |
any other appropriate ethics commission. If the accused person is | 1317 |
a member of the public employees retirement board, state teachers | 1318 |
retirement board, school employees retirement board, board of | 1319 |
trustees of the Ohio police and fire pension fund, or state | 1320 |
highway patrol retirement board, the commission, at its | 1321 |
discretion, also may share information gathered in the course of | 1322 |
an investigation with, or disclose the information to, the | 1323 |
attorney general and the auditor of state. The person so requested | 1324 |
shall furnish the information to the commission, unless within | 1325 |
fifteen days from the date of the request the person files an | 1326 |
action for declaratory judgment challenging the legitimacy of the | 1327 |
request in the court of common pleas of the county of the person's | 1328 |
residence, the person's place of employment, or Franklin county. | 1329 |
The requested information need not be furnished to the commission | 1330 |
during the pendency of the judicial proceedings. Proceedings of | 1331 |
the commission in connection with the declaratory judgment action | 1332 |
shall be kept confidential except as otherwise provided by this | 1333 |
section. Before the commission proceeds to take any formal action | 1334 |
against a person who is the subject of an investigation based on | 1335 |
charges presented to the commission, a complaint shall be filed | 1336 |
against the person. If the commission finds that a complaint is | 1337 |
not frivolous, and there is reasonable cause to believe that the | 1338 |
facts alleged in a complaint constitute a violation of section | 1339 |
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised | 1340 |
Code, it shall hold a hearing. If the commission does not so find, | 1341 |
it shall dismiss the complaint and notify the accused person in | 1342 |
writing of the dismissal of the complaint. The commission shall | 1343 |
not make a report of its finding unless the accused person | 1344 |
requests a report. Upon the request of the accused person, the | 1345 |
commission shall make a public report of its finding. The person | 1346 |
against whom the complaint is directed shall be given reasonable | 1347 |
notice by certified mail of the date, time, and place of the | 1348 |
hearing and a statement of the charges and the law directly | 1349 |
involved and shall be given the opportunity to be represented by | 1350 |
counsel, to have counsel appointed for the person if the person is | 1351 |
unable to afford counsel without undue hardship, to examine the | 1352 |
evidence against the person, to produce evidence and to call and | 1353 |
subpoena witnesses in the person's defense, to confront the | 1354 |
person's accusers, and to cross-examine witnesses. The commission | 1355 |
shall have a stenographic record made of the hearing. The hearing | 1356 |
shall be closed to the public. | 1357 |
(C)(1)(a) If upon the basis of the hearing, the commission | 1358 |
finds by a preponderance of the evidence that the facts alleged in | 1359 |
the complaint are true and constitute a violation of section | 1360 |
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised | 1361 |
Code, it shall report its findings to the appropriate prosecuting | 1362 |
authority for proceedings in prosecution of the violation and to | 1363 |
the appointing or employing authority of the accused. If the | 1364 |
accused person is a member of the public employees retirement | 1365 |
board, state teachers retirement board, school employees | 1366 |
retirement board, board of trustees of the Ohio police and fire | 1367 |
pension fund, or state highway patrol retirement board, the | 1368 |
commission also shall report its findings to the Ohio retirement | 1369 |
study council. | 1370 |
(b) If the Ohio ethics commission reports its findings to the | 1371 |
appropriate prosecuting authority under division (C)(1)(a) of this | 1372 |
section and the prosecuting authority has not initiated any | 1373 |
official action on those findings within ninety days after | 1374 |
receiving the commission's report of them, then the commission may | 1375 |
publicly comment that no official action has been taken on its | 1376 |
findings, except that the commission shall make no comment in | 1377 |
violation of the Rules of Criminal Procedure or about any | 1378 |
indictment that has been sealed pursuant to any law or those | 1379 |
rules. The commission shall make no comment regarding the merits | 1380 |
of its findings. As used in division (C)(1)(b) of this section, | 1381 |
"official action" means prosecution, closure after investigation, | 1382 |
or grand jury action resulting in a true bill of indictment or no | 1383 |
true bill of indictment. | 1384 |
(2) If the appropriate ethics commission does not find by a | 1385 |
preponderance of the evidence that the facts alleged in the | 1386 |
complaint are true and constitute a violation of section 102.02, | 1387 |
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code or | 1388 |
if the commission has not scheduled a hearing within ninety days | 1389 |
after the complaint is filed or has not finally disposed of the | 1390 |
complaint within six months after it has been heard, it shall | 1391 |
dismiss the complaint and notify the accused person in writing of | 1392 |
the dismissal of the complaint. The commission shall not make a | 1393 |
report of its finding unless the accused person requests a report. | 1394 |
Upon the request of the accused person, the commission shall make | 1395 |
a public report of the finding, but in this case all evidence and | 1396 |
the record of the hearing shall remain confidential unless the | 1397 |
accused person also requests that the evidence and record be made | 1398 |
public. Upon request by the accused person, the commission shall | 1399 |
make the evidence and the record available for public inspection. | 1400 |
(D) The commission, or a member of the commission, may | 1401 |
administer oaths, and the commission may issue subpoenas to any | 1402 |
person in the state compelling the attendance of witnesses and the | 1403 |
production of relevant papers, books, accounts, and records. The | 1404 |
commission shall issue subpoenas to compel the attendance of | 1405 |
witnesses and the production of documents upon the request of an | 1406 |
accused person. Section 101.42 of the Revised Code shall govern | 1407 |
the issuance of these subpoenas insofar as applicable. Upon the | 1408 |
refusal of any person to obey a subpoena or to be sworn or to | 1409 |
answer as a witness, the commission may apply to the court of | 1410 |
common pleas of Franklin county under section 2705.03 of the | 1411 |
Revised Code. The court shall hold proceedings in accordance with | 1412 |
Chapter 2705. of the Revised Code. The commission or the accused | 1413 |
person may take the depositions of witnesses residing within or | 1414 |
without the state in the same manner as prescribed by law for the | 1415 |
taking of depositions in civil actions in the court of common | 1416 |
pleas. | 1417 |
(E) At least once each year, the Ohio ethics commission shall | 1418 |
report on its activities of the immediately preceding year to the | 1419 |
majority and minority leaders of the senate and house of | 1420 |
representatives of the general assembly. The report shall indicate | 1421 |
the total number of complaints received, initiated, and | 1422 |
investigated by the commission, the total number of complaints for | 1423 |
which formal hearings were held, and the total number of | 1424 |
complaints for which formal prosecution was recommended or | 1425 |
requested by the commission. The report also shall indicate the | 1426 |
nature of the inappropriate conduct alleged in each complaint and | 1427 |
the governmental entity with which any employee or official that | 1428 |
is the subject of a complaint was employed at the time of the | 1429 |
alleged inappropriate conduct. | 1430 |
(F) All papers, records, affidavits, and documents upon any | 1431 |
complaint, inquiry, or investigation relating to the proceedings | 1432 |
of the appropriate commission shall be sealed and are private and | 1433 |
confidential, except as otherwise provided in this section and | 1434 |
section 102.07 of the Revised Code. | 1435 |
(G)(1) When a complaint or charge is before it, the Ohio | 1436 |
ethics commission or the appropriate prosecuting authority, in | 1437 |
consultation with the person filing the complaint or charge, the | 1438 |
accused, and any other person the commission or prosecuting | 1439 |
authority considers necessary, may compromise or settle the | 1440 |
complaint or charge with the agreement of the accused. The | 1441 |
compromise or settlement may include mediation, restitution, | 1442 |
rescission of affected contracts, forfeiture of any benefits | 1443 |
resulting from a violation or potential violation of law, | 1444 |
resignation of a public official or employee, or any other relief | 1445 |
that is agreed upon between the commission or prosecuting | 1446 |
authority and the accused. | 1447 |
(2) Any settlement agreement entered into under division | 1448 |
(G)(1) of this section shall be in writing and be accompanied by a | 1449 |
statement of the findings of the commission or prosecuting | 1450 |
authority and the reasons for entering into the agreement. The | 1451 |
commission or prosecuting authority shall retain the agreement and | 1452 |
statement in
the commission's or
prosecuting
| 1453 |
authority's office and, in the commission's or prosecuting | 1454 |
authority's discretion, may make the agreement, the statement, and | 1455 |
any supporting information public, unless the agreement provides | 1456 |
otherwise. | 1457 |
(3) If a settlement agreement is breached by the accused, the | 1458 |
commission or prosecuting authority, in the commission's or | 1459 |
prosecuting authority's discretion, may rescind the agreement and | 1460 |
reinstitute any investigation, hearing, or prosecution of the | 1461 |
accused. No information obtained from the accused in reaching the | 1462 |
settlement that is not otherwise discoverable from the accused | 1463 |
shall be used in any proceeding before the commission or by the | 1464 |
appropriate prosecuting authority in prosecuting the violation. | 1465 |
Notwithstanding any other section of the Revised Code, if a | 1466 |
settlement agreement is breached, any statute of limitations for a | 1467 |
violation of this chapter or section 2921.42 or 2921.43 of the | 1468 |
Revised Code is tolled from the date the complaint or charge is | 1469 |
filed until the date the settlement agreement is breached. | 1470 |
Sec. 109.98. As used in this section, "state retirement | 1471 |
board" means the public employees retirement board, board of | 1472 |
trustees of the Ohio police and fire pension fund, school | 1473 |
employees retirement board, state teachers retirement board, and | 1474 |
state highway patrol retirement board. | 1475 |
If a member of a state retirement board breaches the member's | 1476 |
fiduciary duty to the retirement system, the attorney general may | 1477 |
maintain a civil action against the board member for harm | 1478 |
resulting from that breach. The attorney general may recover | 1479 |
damages or be granted injunctive relief, which shall include the | 1480 |
enjoinment of specified activities and the removal of the member | 1481 |
from the board. Any damages awarded shall be paid to the | 1482 |
retirement system. The authority to maintain a civil action | 1483 |
created by this section is in addition to any authority the | 1484 |
attorney general possesses under any other provision of the | 1485 |
Revised Code. | 1486 |
Sec. 111.30. The secretary of state shall prescribe forms for | 1487 |
campaign finance disclosure statements and independent expenditure | 1488 |
statements for the purpose of sections 145.053, 742.042, 3307.072, | 1489 |
3309.072, and 5505.044 of the Revised Code and accept the forms | 1490 |
from candidates and persons making independent expenditures filing | 1491 |
them with the secretary pursuant to those sections. | 1492 |
Sec. 117.10. The auditor of state shall audit all public | 1493 |
offices as provided in this chapter. The auditor of state also may | 1494 |
audit the accounts of private institutions, associations, boards, | 1495 |
and corporations receiving public money for their use and may | 1496 |
require of them annual reports in such form as the auditor of | 1497 |
state prescribes. | 1498 |
If the auditor of state performs or contracts for the | 1499 |
performance of an audit, including a special audit, of the public | 1500 |
employees retirement system, school employees retirement system, | 1501 |
state teachers retirement system, state highway patrol retirement | 1502 |
system, or Ohio police and fire pension fund, the auditor of state | 1503 |
shall make a timely report of the results of the audit to the Ohio | 1504 |
retirement study council. | 1505 |
The auditor of state may audit the accounts of any provider | 1506 |
as defined in section 5111.06 of the Revised Code, if requested by | 1507 |
the department of job and family services. | 1508 |
If a public office has been audited by an agency of the | 1509 |
United States government, the auditor of state may, if satisfied | 1510 |
that the federal audit has been conducted according to principles | 1511 |
and procedures not contrary to those of the auditor of state, use | 1512 |
and adopt the federal audit and report in lieu of an audit by the | 1513 |
auditor of state's own office. | 1514 |
Within thirty days after the creation or dissolution or the | 1515 |
winding up of the affairs of any public office, that public office | 1516 |
shall notify the auditor of state in writing that this action has | 1517 |
occurred. | 1518 |
Sec. 145.04. The general administration and management of | 1519 |
the public employees retirement system and the making effective of | 1520 |
Chapter 145. of the Revised Code, are hereby vested in a board to | 1521 |
be known as the "public employees retirement board," which shall | 1522 |
consist of | 1523 |
(A) | 1524 |
of state's investment designee, who shall be appointed by the | 1525 |
treasurer of state for a term of four years and have the following | 1526 |
qualifications: | 1527 |
(1) The member is a resident of this state. | 1528 |
(2) Within the three years immediately preceding the | 1529 |
appointment, the member has not been employed by the public | 1530 |
employees retirement system, police and fire pension fund, state | 1531 |
teachers retirement system, school employees retirement system, or | 1532 |
state highway patrol retirement system or by any person, | 1533 |
partnership, or corporation that has provided to one of those | 1534 |
retirement systems services of a financial or investment nature, | 1535 |
including management, analysis, supervision, or investment of | 1536 |
assets. | 1537 |
(3) The member has direct experience in the management, | 1538 |
analysis, supervision, or investment of assets. | 1539 |
(4) The member is not currently employed by the state or a | 1540 |
political subdivision of the state. | 1541 |
(B) | 1542 |
| 1543 |
| 1544 |
shall be a state employee member of the system, who shall be | 1545 |
elected by ballot by the state employee members of the system from | 1546 |
among their number; another of whom shall be a county employee | 1547 |
member of the system, who shall be elected by ballot by the county | 1548 |
employee members of the system from among their number; another of | 1549 |
whom shall be a municipal employee member of the system, who shall | 1550 |
be elected by ballot by the municipal employee members of the | 1551 |
system from among their number; another of whom shall be a | 1552 |
university or college employee member of the system, who shall be | 1553 |
elected by ballot by the university and college employee members | 1554 |
of the system from among their number; and another of whom shall | 1555 |
be a park district, conservancy district, sanitary district, | 1556 |
health district, public library,
| 1557 |
authority, union cemetery, joint hospital, township, or | 1558 |
institutional commissary employee member of the system, who shall | 1559 |
be elected by ballot by the park district, conservancy district, | 1560 |
sanitary district, health district, metropolitan housing | 1561 |
authority,
| 1562 |
hospital, township, and institutional commissary employee members | 1563 |
of the system from among their number, in a manner to be approved | 1564 |
by the board. Members of the system who are receiving a disability | 1565 |
benefit under this chapter are ineligible for membership on the | 1566 |
board as employee members. | 1567 |
| 1568 |
members, who shall be
| 1569 |
employees retirement system who | 1570 |
state and | 1571 |
disability benefit, or benefits paid under a PERS defined | 1572 |
contribution plan. The retirant | 1573 |
ballot by former members of the system who are receiving age and | 1574 |
service retirement, a disability benefit, or benefits paid under a | 1575 |
PERS defined contribution plan; | 1576 |
(E)(1) Two members, known as the investment expert members, | 1577 |
who shall be appointed for four-year terms and each of whom shall | 1578 |
have the following qualifications: | 1579 |
(a) The member is a resident of this state. | 1580 |
(b) Within the three years immediately preceding the | 1581 |
appointment, the member has not been employed by the public | 1582 |
employees retirement system, police and fire pension fund, state | 1583 |
teachers retirement system, school employees retirement system, or | 1584 |
state highway patrol retirement system or by any person, | 1585 |
partnership, or corporation that has provided to one of those | 1586 |
retirement systems services of a financial or investment nature, | 1587 |
including the management, analysis, supervision, or investment of | 1588 |
assets. | 1589 |
(c) The member has direct experience in the management, | 1590 |
analysis, supervision, or investment of assets. | 1591 |
(2) One investment expert member shall be appointed by the | 1592 |
governor, and one investment expert member shall be jointly | 1593 |
appointed by the speaker of the house of representatives and the | 1594 |
president of the senate. Any investment expert member appointed to | 1595 |
fill a vacancy occurring prior to the expiration of the term for | 1596 |
which the member's predecessor was appointed shall hold office | 1597 |
until the end of such term. The member shall continue in office | 1598 |
subsequent to the expiration date of the member's term until the | 1599 |
member's successor takes office, or until a period of sixty days | 1600 |
has elapsed, whichever occurs first. | 1601 |
Sec. 145.041. Each newly elected member of the public | 1602 |
employees retirement board and each individual appointed to fill a | 1603 |
vacancy on the board, shall, not later than ninety days after | 1604 |
commencing service as a board member, complete the orientation | 1605 |
program component of the retirement board member education program | 1606 |
established under section 171.50 of the Revised Code. | 1607 |
Each member of the board who has served a year or longer as a | 1608 |
board member shall, not less than twice each year, attend one or | 1609 |
more programs that are part of the continuing education component | 1610 |
of the retirement board member education program established under | 1611 |
section 171.50 of the Revised Code. | 1612 |
Sec. 145.042. A person who served as an elected or appointed | 1613 |
member of the public employees retirement board for one or more | 1614 |
entire fiscal years in fiscal years 2000, 2001, or 2002 is | 1615 |
ineligible for re-election or reappointment to the board if the | 1616 |
board paid travel-related expenses of the person or reimbursed the | 1617 |
person for travel-related expenses that averaged more than ten | 1618 |
thousand dollars annually for those fiscal years. | 1619 |
Sec. 145.05. (A) The terms of office of employee members of | 1620 |
the public employees retirement board shall be for four years each | 1621 |
beginning on the first day of January following election. The | 1622 |
election of the county employee member of the board and the | 1623 |
employee member of the board representing public library, health | 1624 |
district, park district, conservancy district, sanitary district, | 1625 |
township, metropolitan housing authority, union cemetery, joint | 1626 |
hospital, and institutional commissary employees shall be held on | 1627 |
the first Monday in October, 1945, and on the first Monday in | 1628 |
October in each fourth year thereafter. The election of the state | 1629 |
employee member of the board and the municipal employee member of | 1630 |
the board shall be held on the first Monday in October, 1946, and | 1631 |
on the first Monday in October in each fourth year thereafter. The | 1632 |
election of the initial university-college employee member of the | 1633 |
board shall be held on the first Monday in October, 1978, and | 1634 |
elections for subsequent university-college employee members of | 1635 |
the board shall be held on the first Monday in October in each | 1636 |
fourth year thereafter. | 1637 |
(B) The term of office of the retirant | 1638 |
public employees retirement board shall be for four years | 1639 |
beginning on the first day of January following the election. The | 1640 |
election of
the initial retirant member | 1641 |
the board shall be held on the first Monday in October, 1978, and | 1642 |
subsequent elections for
| 1643 |
1644 | |
each fourth year thereafter. The initial election for the second | 1645 |
retirant member position shall be held at the first election that | 1646 |
occurs later than ninety days after the effective date of this | 1647 |
amendment. Subsequent elections for this retirant position shall | 1648 |
be held each fourth year thereafter. | 1649 |
(C) All elections for employee members of the public | 1650 |
employees retirement board shall be held under the direction of | 1651 |
the board in accordance with rules adopted under section 145.058 | 1652 |
of the Revised Code. Any member of the public employees retirement | 1653 |
system, except a member who is receiving a disability benefit | 1654 |
under this chapter, is eligible for election as an employee member | 1655 |
of the board to represent the employee group that includes the | 1656 |
member, provided that the member has been nominated by a petition | 1657 |
that is signed by at least five hundred members of the employee | 1658 |
group to be
represented | 1659 |
including not less than twenty such signers from each of at least | 1660 |
ten counties of the state, and certified in accordance with rules | 1661 |
adopted under section 145.058 of the Revised Code. The name of any | 1662 |
member so nominated shall be placed upon the ballot by the board | 1663 |
as a regular candidate. Names of other eligible candidates may, at | 1664 |
any election, be substituted for the regular candidates by writing | 1665 |
such names upon the ballots. The candidate who receives the | 1666 |
highest number of votes for a particular employee member position | 1667 |
on the board shall be elected to that office on certification of | 1668 |
the election results in accordance with rules adopted under | 1669 |
section 145.058 of the Revised Code. | 1670 |
(D) All elections for the retirant | 1671 |
public employees retirement board shall be held under the | 1672 |
direction of the board in accordance with rules adopted under | 1673 |
section 145.058 of the Revised Code. Any former member of the | 1674 |
public employees retirement system who is described in division | 1675 |
1676 | |
election as
| 1677 |
recipients of age and service retirement, a disability benefit, or | 1678 |
benefits paid under a PERS defined contribution plan, provided | 1679 |
that such person has been nominated by a petition that is signed | 1680 |
by any combination of at least two hundred fifty eligible, former | 1681 |
members of
the system
| 1682 |
accordance with rules adopted under section 145.058 of the Revised | 1683 |
Code. To be eligible to sign the petition, a former member of the | 1684 |
system must be a recipient of age and service retirement, a | 1685 |
disability benefit, or benefits paid under a PERS defined | 1686 |
contribution
plan | 1687 |
1688 | |
signatures of at least ten such recipients from each of at least | 1689 |
five counties wherein recipients of benefits from the system | 1690 |
reside. | 1691 |
The name of any person nominated in this manner shall be | 1692 |
placed upon the ballot by the board as a regular candidate. Names | 1693 |
of other eligible candidates may, at any election for | 1694 |
retirant member of the board, be substituted for the regular | 1695 |
candidates by writing the names of such persons upon the ballot. | 1696 |
The candidate who receives the highest number of votes for any | 1697 |
term as | 1698 |
office on certification of the election results in accordance with | 1699 |
rules adopted under section 145.058 of the Revised Code. | 1700 |
Sec. 145.051. If a person elected to serve on the public | 1701 |
employees retirement board is unable to assume office at the | 1702 |
January meeting of the board following the person's election, a | 1703 |
special election shall be held in accordance with the provisions | 1704 |
of section 145.05 of the Revised Code within three months of the | 1705 |
January meeting. On certification of the elections results, the | 1706 |
newly elected person shall assume office at the meeting of the | 1707 |
board immediately following the special election. | 1708 |
| 1709 |
145.05 of the Revised Code, the public employees retirement board | 1710 |
is not required to hold an election, including a special election | 1711 |
under
section | 1712 |
on the board as an employee member or retirant member if only one | 1713 |
candidate has been nominated for the position by petition in | 1714 |
accordance with section 145.05 of the Revised Code. The candidate | 1715 |
shall take office as if elected. The term of office shall be four | 1716 |
years beginning on the first day of January following the date the | 1717 |
candidate was nominated. | 1718 |
Sec. 145.053. (A) As used in this section: | 1719 |
(1) "Campaign committee" means a candidate or a combination | 1720 |
of two or more persons authorized by a candidate to receive | 1721 |
contributions and in-kind contributions and make expenditures on | 1722 |
behalf of the candidate. | 1723 |
(2) "Candidate" means an individual who has been nominated | 1724 |
pursuant to division (C) or (D) of section 145.05 of the Revised | 1725 |
Code for election to the public employees retirement board or who | 1726 |
is seeking to be elected to fill a vacancy on the board pursuant | 1727 |
to section 145.06 of the Revised Code. | 1728 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 1729 |
of indebtedness, donation, advance, payment, transfer of funds or | 1730 |
transfer of anything of value including a transfer of funds from | 1731 |
an inter vivos or testamentary trust or decedent's estate, and the | 1732 |
payment by any person other than the person to whom the services | 1733 |
are rendered for the personal services of another person, which | 1734 |
contribution is made, received, or used for the purpose of | 1735 |
influencing the results of an election to the public employees | 1736 |
retirement board under section 145.05 of the Revised Code, | 1737 |
including a special election provided for by section 145.051 of | 1738 |
the Revised Code, or the results of an election to fill a vacancy | 1739 |
on the board pursuant to section 145.06 of the Revised Code. | 1740 |
"Contribution" does not include: | 1741 |
(a) Services provided without compensation by individuals | 1742 |
volunteering a portion or all of their time on behalf of a person; | 1743 |
(b) Ordinary home hospitality; | 1744 |
(c) The personal expenses of a volunteer paid for by that | 1745 |
volunteer campaign worker. | 1746 |
(4) "Election day" means the following, as appropriate to the | 1747 |
situation: | 1748 |
(a) The first Monday in October of a year for which section | 1749 |
145.05 of the Revised Code specifies that an election for a member | 1750 |
of the public employees retirement board be held; | 1751 |
(b) If, pursuant to section 145.052 of the Revised Code, no | 1752 |
election is held, the first Monday in October of a year that the | 1753 |
election would have been held if not for section 145.052 of the | 1754 |
Revised Code; | 1755 |
(c) If the election is a special election provided for by | 1756 |
section 145.051 of the Revised Code, a day that the board shall | 1757 |
specify that is consistent with requirements for a special | 1758 |
election established by section 145.051 of the Revised Code. | 1759 |
(5) "Expenditure" means the disbursement or use of a | 1760 |
contribution for the purpose of influencing the results of an | 1761 |
election to the public employees retirement board under section | 1762 |
145.05 of the Revised Code, including a special election provided | 1763 |
for by section 145.051 of the Revised Code, or the results of an | 1764 |
election to fill a vacancy on the board pursuant to section 145.06 | 1765 |
of the Revised Code. | 1766 |
(6) "Independent expenditure" means an expenditure by an | 1767 |
individual, partnership, or other entity advocating the election | 1768 |
or defeat of an identified candidate or candidates, that is not | 1769 |
made with the consent of, in coordination, cooperation, or | 1770 |
consultation with, or at the request or suggestion of any | 1771 |
candidate or candidates or of the campaign committee or agent of | 1772 |
the candidate or candidates. An independent expenditure shall not | 1773 |
be construed as being a contribution. As used in division (A)(6) | 1774 |
of this section: | 1775 |
(a) "Advocating" means any communication containing a message | 1776 |
advocating election or defeat. | 1777 |
(b) "Identified candidate" means that the name of the | 1778 |
candidate appears, a photograph or drawing of the candidate | 1779 |
appears, or the identity of the candidate is otherwise apparent by | 1780 |
unambiguous reference. | 1781 |
(c) "Made in coordination, cooperation, or consultation with, | 1782 |
or at the request or suggestion of, any candidate or the campaign | 1783 |
committee or agent of the candidate" means made pursuant to any | 1784 |
arrangement, coordination, or direction by the candidate, the | 1785 |
candidate's campaign committee, or the candidate's agent prior to | 1786 |
the publication, distribution, display, or broadcast of the | 1787 |
communication. An expenditure is presumed to be so made when it is | 1788 |
any of the following: | 1789 |
(i) Based on information about the candidate's plans, | 1790 |
projects, or needs provided to the person making the expenditure | 1791 |
by the candidate, or by the candidate's campaign committee or | 1792 |
agent, with a view toward having an expenditure made; | 1793 |
(ii) Made by or through any person who is, or has been, | 1794 |
authorized to raise or expend funds, who is, or has been, an | 1795 |
officer of the candidate's campaign committee, or who is, or has | 1796 |
been, receiving any form of compensation or reimbursement from the | 1797 |
candidate or the candidate's campaign committee or agent; | 1798 |
(iii) Made by a political party in support of a candidate, | 1799 |
unless the expenditure is made by a political party to conduct | 1800 |
voter registration or voter education efforts. | 1801 |
(d) "Agent" means any person who has actual oral or written | 1802 |
authority, either express or implied, to make or to authorize the | 1803 |
making of expenditures on behalf of a candidate, or means any | 1804 |
person who has been placed in a position with the candidate's | 1805 |
campaign committee or organization such that it would reasonably | 1806 |
appear that in the ordinary course of campaign-related activities | 1807 |
the person may authorize expenditures. | 1808 |
(7) "In-kind contribution" means anything of value other than | 1809 |
money that is used to influence the results of an election to the | 1810 |
public employees retirement board under section 145.05 of the | 1811 |
Revised Code, including a special election provided for by section | 1812 |
145.051 of the Revised Code, or the results of an election to fill | 1813 |
a vacancy on the board pursuant to section 145.06 of the Revised | 1814 |
Code, or is transferred to or used in support of or in opposition | 1815 |
to a candidate and that is made with the consent of, in | 1816 |
coordination, cooperation, or consultation with, or at the request | 1817 |
or suggestion of the benefited candidate. The financing of the | 1818 |
dissemination, distribution, or republication, in whole or part, | 1819 |
of any broadcast or of any written, graphic, or other form of | 1820 |
campaign materials prepared by the candidate, the candidate's | 1821 |
campaign committee, or their authorized agents is an in-kind | 1822 |
contribution to the candidate and an expenditure by the candidate. | 1823 |
(8) "Personal expenses" includes ordinary expenses for | 1824 |
accommodations, clothing, food, personal motor vehicle or | 1825 |
airplane, and home telephone. | 1826 |
(B) Except as otherwise provided in division (D) of this | 1827 |
section, each candidate who, or whose campaign committee, receives | 1828 |
contributions or in-kind contributions totaling one thousand | 1829 |
dollars or more or has expenditures totaling one thousand dollars | 1830 |
or more in connection with the candidate's efforts to be elected | 1831 |
to the public employees retirement board shall file with the | 1832 |
secretary of state two complete, accurate, and itemized statements | 1833 |
setting forth in detail the contributions, in-kind contributions, | 1834 |
and expenditures. The statements shall be filed regardless of | 1835 |
whether the election is a regular election or, pursuant to section | 1836 |
145.051 of the Revised Code, a special election. The statements | 1837 |
shall also be filed regardless of whether, pursuant to section | 1838 |
145.052 of the Revised Code, no election is held. The statements | 1839 |
shall be made on a form prescribed under section 111.30 of the | 1840 |
Revised Code. Every expenditure shall be vouched for by a | 1841 |
receipted bill, stating the purpose of the expenditures, that | 1842 |
shall be filed with the statement; a canceled check with a | 1843 |
notation of the purpose of the expenditure is a receipted bill for | 1844 |
purposes of this division. | 1845 |
The first statement shall be filed not later than four p.m. | 1846 |
on the day that is twelve days before election day. The second | 1847 |
statement shall be filed not sooner than the day that is eight | 1848 |
days after election day and not later than thirty-eight days after | 1849 |
election day. The first statement shall reflect contributions and | 1850 |
in-kind contributions received and expenditures made to the close | 1851 |
of business on the twentieth day before election day. The second | 1852 |
statement shall reflect contributions and in-kind contributions | 1853 |
received and expenditures made during the period beginning on the | 1854 |
nineteenth day before election day and ending on the close of | 1855 |
business on the seventh day after election day. | 1856 |
(C) Each individual, partnership, or other entity that makes | 1857 |
an independent expenditure in connection with the candidate's | 1858 |
efforts to be elected to the public employees retirement board | 1859 |
shall file with the secretary of state two complete, accurate, and | 1860 |
itemized statements setting forth in detail the independent | 1861 |
expenditures. The statements shall be filed regardless of whether | 1862 |
the election is a regular election or, pursuant to section 145.051 | 1863 |
of the Revised Code, a special election. The statements also shall | 1864 |
be filed regardless of whether, pursuant to section 145.052 of the | 1865 |
Revised Code, no election is held. The statements shall be made on | 1866 |
a form prescribed under section 111.30 of the Revised Code. | 1867 |
The first statement shall be filed not later than four p.m. | 1868 |
on the day that is twelve days before election day. The second | 1869 |
statement shall be filed not sooner than the day that is eight | 1870 |
days after election day and not later than thirty-eight days after | 1871 |
election day. The first statement shall reflect independent | 1872 |
expenditures made to the close of business on the twentieth day | 1873 |
before election day. The second statement shall reflect | 1874 |
independent expenditures made during the period beginning on the | 1875 |
nineteenth day before election day and ending on the close of | 1876 |
business on the seventh day after election day. | 1877 |
(D) Each candidate who, or whose campaign committee, receives | 1878 |
a contribution or in-kind contribution or makes an expenditure in | 1879 |
connection with the candidate's efforts to be elected to fill a | 1880 |
vacancy in the public employees retirement board pursuant to | 1881 |
section 145.06 of the Revised Code shall file with the secretary | 1882 |
of state a complete, accurate, and itemized statement setting | 1883 |
forth in detail the contributions, in-kind contributions, and | 1884 |
expenditures. The statement shall be made on a form prescribed | 1885 |
under section 111.30 of the Revised Code. Every expenditure shall | 1886 |
be vouched for by a receipted bill, stating the purpose of the | 1887 |
expenditures, that shall be filed with the statement; a canceled | 1888 |
check with a notation of the purpose of the expenditure is a | 1889 |
receipted bill for purposes of this division. | 1890 |
The statement shall be filed within thirty-eight days after | 1891 |
the day the candidate takes office. The statement shall reflect | 1892 |
contributions and in-kind contributions received and expenditures | 1893 |
made to the close of business on the seventh day after the day the | 1894 |
candidate takes office. | 1895 |
Sec. 145.054. (A) No person shall knowingly fail to file a | 1896 |
complete and accurate campaign finance statement or independent | 1897 |
expenditure statement in accordance with section 145.053 of the | 1898 |
Revised Code. | 1899 |
(B) No person, during the course of a person seeking | 1900 |
nomination for, or during any campaign for, election to the public | 1901 |
employees retirement board, shall knowingly and with intent to | 1902 |
affect the nomination or the outcome of the campaign do any of the | 1903 |
following by means of campaign materials, an advertisement on | 1904 |
radio or television or in a newspaper or periodical, a public | 1905 |
speech, press release, or otherwise: | 1906 |
(1) With regard to a candidate, identify the candidate in a | 1907 |
manner that implies that the candidate is a member of the board or | 1908 |
use the term "re-elect" when the candidate is not currently a | 1909 |
member of the board; | 1910 |
(2) Make a false statement concerning the formal schooling or | 1911 |
training completed or attempted by a candidate; a degree, diploma, | 1912 |
certificate, scholarship, grant, award, prize, or honor received, | 1913 |
earned, or held by a candidate; or the period of time during which | 1914 |
a candidate attended any school, college, community technical | 1915 |
school, or institution; | 1916 |
(3) Make a false statement concerning the professional, | 1917 |
occupational, or vocational licenses held by a candidate, or | 1918 |
concerning any position the candidate held for which the candidate | 1919 |
received a salary or wages; | 1920 |
(4) Make a false statement that a candidate or board member | 1921 |
has been indicted or convicted of a theft offense, extortion, or | 1922 |
other crime involving financial corruption or moral turpitude; | 1923 |
(5) Make a statement that a candidate has been indicted for | 1924 |
any crime or has been the subject of a finding by the Ohio | 1925 |
elections commission without disclosing the outcome of any legal | 1926 |
proceedings resulting from the indictment or finding; | 1927 |
(6) Make a false statement that a candidate or board member | 1928 |
has a record of treatment or confinement for mental disorder; | 1929 |
(7) Make a false statement that a candidate or board member | 1930 |
has been subjected to military discipline for criminal misconduct | 1931 |
or dishonorably discharged from the armed services; | 1932 |
(8) Falsely identify the source of a statement, issue | 1933 |
statements under the name of another person without authorization, | 1934 |
or falsely state the endorsement of or opposition to a candidate | 1935 |
by a person or publication; | 1936 |
(9) Make a false statement concerning the voting record of a | 1937 |
candidate or board member; | 1938 |
(10) Post, publish, circulate, distribute, or otherwise | 1939 |
disseminate a false statement concerning a candidate, either | 1940 |
knowing the same to be false or with reckless disregard of whether | 1941 |
it was false or not, if the statement is designed to promote the | 1942 |
election, nomination, or defeat of the candidate. | 1943 |
Sec. 145.055. The secretary of state, or any person acting | 1944 |
on personal knowledge and subject to the penalties of perjury, may | 1945 |
file a complaint with the Ohio elections commission alleging a | 1946 |
violation of section 145.054 of the Revised Code. The complaint | 1947 |
shall be made on a form prescribed and provided by the commission. | 1948 |
On receipt of a complaint under this section, the commission | 1949 |
shall hold a hearing open to the public to determine whether the | 1950 |
violation alleged in the complaint has occurred. The commission | 1951 |
may administer oaths and issue subpoenas to any person in the | 1952 |
state compelling the attendance of witnesses and the production of | 1953 |
relevant papers, books, accounts, and reports. On the refusal of | 1954 |
any person to obey a subpoena or to be sworn or to answer as a | 1955 |
witness, the commission may apply to the court of common pleas of | 1956 |
Franklin county under section 2705.03 of the Revised Code. The | 1957 |
court shall hold contempt proceedings in accordance with Chapter | 1958 |
2705. of the Revised Code. | 1959 |
The commission shall provide the person accused of the | 1960 |
violation at least seven days prior notice of the time, date, and | 1961 |
place of the hearing. The accused may be represented by an | 1962 |
attorney and shall have an opportunity to present evidence, call | 1963 |
witnesses, and cross-examine witnesses. | 1964 |
At the hearing, the commission shall determine whether the | 1965 |
violation alleged in the complaint has occurred. If the commission | 1966 |
determines that a violation of division (A) of section 145.054 of | 1967 |
the Revised Code has occurred, the commission shall either impose | 1968 |
a fine under section 145.99 of the Revised Code or enter a finding | 1969 |
that good cause has been shown not to impose the fine. If the | 1970 |
commission determines that a violation of division (B) of section | 1971 |
145.054 of the Revised Code has occurred, the commission shall | 1972 |
impose the fine described in section 145.99 of the Revised Code, | 1973 |
refer the matter to the appropriate prosecutor, or enter a finding | 1974 |
that good cause has been shown not to impose a fine or refer the | 1975 |
matter to a prosecutor. | 1976 |
Sec. 145.057. (A) The office of an employee member or | 1977 |
retirant member of the public employees retirement board who is | 1978 |
convicted of or pleads guilty to a felony, a theft offense as | 1979 |
defined in section 2913.01 of the Revised Code, or a violation of | 1980 |
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, | 1981 |
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code | 1982 |
shall be deemed vacant. A person who has pleaded guilty to or been | 1983 |
convicted of an offense of that nature is ineligible for election | 1984 |
to the office of employee member or retirant member of the public | 1985 |
employees retirement board. | 1986 |
(B) A member of the public employees retirement board who | 1987 |
willfully and flagrantly exercises authority or power not | 1988 |
authorized by law, refuses or willfully neglects to enforce the | 1989 |
law or to perform any official duty imposed by law, or is guilty | 1990 |
of gross neglect of duty, gross immorality, drunkenness, | 1991 |
misfeasance, malfeasance, or nonfeasance is guilty of misconduct | 1992 |
in office. On complaint and hearing in the manner provided for in | 1993 |
this section, the board member shall have judgment of forfeiture | 1994 |
of the office with all its emoluments entered against the board | 1995 |
member, creating in the office a vacancy to be filled as provided | 1996 |
by law. | 1997 |
(C) Proceedings for removal of a board member on any of the | 1998 |
grounds enumerated in division (B) of this section shall be | 1999 |
commenced by filing with the court of appeals of the district in | 2000 |
which the board member resides a written complaint specifically | 2001 |
setting forth the charge. The complaint shall be accepted if | 2002 |
signed by the governor or signed as follows: | 2003 |
(1) If the complaint is against an employee member of the | 2004 |
board, the complaint must be signed by a number of members of the | 2005 |
employee group represented by the member that equals at least the | 2006 |
following and must include signatures of at least twenty employee | 2007 |
members residing in at least five different counties: | 2008 |
(a) If the employee member was most recently elected in | 2009 |
accordance with section 145.05 of the Revised Code, ten per cent | 2010 |
of the number of members of the employee group represented by the | 2011 |
employee member who voted in that election; | 2012 |
(b) If the employee member was most recently elected under | 2013 |
section 145.06 of the Revised Code or took office in accordance | 2014 |
with section 145.051 of the Revised Code, ten per cent of the | 2015 |
number of members of the employee group represented by the | 2016 |
employee member who voted in the most recent election held in | 2017 |
accordance with section 145.05 of the Revised Code for that | 2018 |
employee member position on the board. | 2019 |
(2) If the complaint is against a retirant member of the | 2020 |
board, the complaint must be signed by a number of former members | 2021 |
of the system authorized to vote for a retirant member in an | 2022 |
election under section 145.05 of the Revised Code that equals at | 2023 |
least the following and must include signatures of at least twenty | 2024 |
former members residing in at least five different counties: | 2025 |
(a) If the retirant member was most recently elected in | 2026 |
accordance with section 145.05 of the Revised Code, ten per cent | 2027 |
of the number of former members of the system who voted in that | 2028 |
election; | 2029 |
(b) If the retirant member was most recently elected under | 2030 |
section 145.06 of the Revised Code or took office in accordance | 2031 |
with section 145.051 of the Revised Code, ten per cent of the | 2032 |
number of former members of the system who voted in the most | 2033 |
recent election held in accordance with section 145.05 of the | 2034 |
Revised Code for that retirant member position on the board. | 2035 |
(D) The clerk of the court of appeals in which a complaint | 2036 |
against a member of the board is filed under division (C) of this | 2037 |
section shall do both of the following with respect to the | 2038 |
complaint: | 2039 |
(1) Submit the signatures obtained pursuant to division (C) | 2040 |
of this section to the board for purposes of verifying the | 2041 |
validity of the signatures. The board shall verify the validity of | 2042 |
the signatures and report its findings to the court. | 2043 |
(2) Cause a copy of the complaint to be served on the board | 2044 |
member at least ten days before the hearing on the complaint. The | 2045 |
court shall hold a public hearing not later than thirty days after | 2046 |
the filing of the complaint. The court may subpoena witnesses and | 2047 |
compel their attendance in the same manner as in civil cases. | 2048 |
Process shall be served by the sheriff of the county in which the | 2049 |
witness resides. Witness fees and other fees in connection with | 2050 |
the proceedings shall be the same as in civil cases. The court may | 2051 |
suspend the board member pending the hearing. | 2052 |
If the court finds that one or more of the charges in the | 2053 |
complaint are true, it shall make a finding for removal of the | 2054 |
board member. The court's finding shall include a full detailed | 2055 |
statement of the reasons for the removal. The finding shall be | 2056 |
filed with the clerk of the court and be made a matter of public | 2057 |
record. | 2058 |
The board member has the right of review or appeal to the | 2059 |
supreme court on leave first obtained. The supreme court shall | 2060 |
hear the case in not more than thirty court days after granting | 2061 |
leave. In other respects, the hearing shall follow the regular | 2062 |
procedure in appealable cases that originate in the court of | 2063 |
appeals. | 2064 |
(E) No individual who has been removed from the board | 2065 |
pursuant to this section shall be eligible to fill an elective or | 2066 |
appointed position as a member of the board. | 2067 |
Sec. 145.058. (A) The public employees retirement board, | 2068 |
following consultation with the secretary of state, shall adopt | 2069 |
rules in accordance with Chapter 119. of the Revised Code, | 2070 |
governing all of the following: | 2071 |
(1) The administration of elections of members of the board | 2072 |
under section 145.05 of the Revised Code, special elections | 2073 |
provided for by section 145.051 of the Revised Code, and elections | 2074 |
held under section 145.06 of the Revised Code to fill vacancies on | 2075 |
the board; | 2076 |
(2) Nominating petitions for the elections; | 2077 |
(3) Certification of the validity of nominating petitions for | 2078 |
the elections; | 2079 |
(4) Certification of the results of the elections. | 2080 |
(B) The board may contract with the secretary of state or an | 2081 |
independent firm to administer the elections, certify the validity | 2082 |
of nominating petitions, and certify the results of the elections. | 2083 |
The secretary of state and the independent firm shall perform | 2084 |
these services in accordance with the rules adopted under division | 2085 |
(A) of this section. Notwithstanding section 145.27 of the Revised | 2086 |
Code, the board shall provide information necessary for the | 2087 |
secretary of state or the independent firm to certify the | 2088 |
election. If the board contracts with an independent firm to | 2089 |
administer an election, the secretary of state may audit the | 2090 |
election. | 2091 |
Sec. 145.06. (A) If a vacancy occurs in the term of any | 2092 |
employee member of the public employees retirement board, the | 2093 |
remaining members of the board shall elect | 2094 |
member from the employee group lacking representation because of | 2095 |
the
vacancy | 2096 |
election results in accordance with rules adopted under section | 2097 |
145.058 of the Revised Code, the successor employee member shall | 2098 |
hold office until the next board election that occurs not less | 2099 |
than ninety days after the successor employee member's election. | 2100 |
Any employee member of the board who fails to attend the | 2101 |
meetings of the board for three months or longer, without valid | 2102 |
excuse, shall be considered as having resigned, and the board | 2103 |
shall declare the employee member's office vacated as of the date | 2104 |
of the adoption of a proper resolution. | 2105 |
(B) If a vacancy occurs during the term of office of | 2106 |
retirant member of the board, the remaining members of the board | 2107 |
shall elect a successor retirant member who | 2108 |
2109 | |
2110 | |
employees retirement system who is eligible for election under | 2111 |
section 145.04
of the
Revised Code as | 2112 |
board. On certification of the election results in accordance with | 2113 |
rules adopted under section 145.058 of the Revised Code, the | 2114 |
successor retirant member shall hold office until the next board | 2115 |
election that occurs not less than ninety days after the successor | 2116 |
retirant member's election. | 2117 |
If a retirant member of the board fails to attend the | 2118 |
meetings of the board for three months or longer, without valid | 2119 |
excuse, the retirant member shall be considered as having | 2120 |
resigned, and the board shall declare the member's office vacated | 2121 |
as of the date of the adoption of a proper resolution. | 2122 |
If as a result of changed circumstances | 2123 |
would no longer qualify for membership on the board as the | 2124 |
retirant member, the retirant member's office shall be considered | 2125 |
vacant, and a successor retirant member shall be chosen in the | 2126 |
manner specified in this division. | 2127 |
(C) | 2128 |
2129 | |
2130 | |
2131 | |
2132 | |
2133 | |
2134 | |
fill a vacancy on the board shall be conducted in accordance with | 2135 |
rules adopted under section 145.058 of the Revised Code. | 2136 |
Sec. 145.09. The public employees retirement board shall | 2137 |
elect from its membership a chairperson, and shall appoint an | 2138 |
executive director who shall serve as secretary to the board, an | 2139 |
actuary, and other employees as necessary for the transaction of | 2140 |
the business of the public employees retirement system. The | 2141 |
compensation of all persons so appointed shall be fixed by the | 2142 |
board. | 2143 |
Effective ninety days after the effective date of this | 2144 |
amendment, the board may not employ a state retirement system | 2145 |
investment officer, as defined in section 1707.01 of the Revised | 2146 |
Code, who does not hold a valid state retirement system investment | 2147 |
officer license issued by the division of securities in the | 2148 |
department of commerce. | 2149 |
Every expense voucher of an employee, officer, or board | 2150 |
member of the public employees retirement system shall itemize all | 2151 |
purchases and expenditures. | 2152 |
The board shall perform other functions as required for the | 2153 |
proper execution of this chapter, and may adopt rules in | 2154 |
accordance with section 111.15 of the Revised Code for the proper | 2155 |
administration and management of this chapter. | 2156 |
The board may take all appropriate action to avoid payment by | 2157 |
the system or its members of federal or state income taxes on | 2158 |
contributions to the system or amounts earned on such | 2159 |
contributions. | 2160 |
Notice of proposed rules shall be given to interested parties | 2161 |
and rules adopted by the board shall be published and otherwise | 2162 |
made available. When it files a rule with the joint committee on | 2163 |
agency rule review pursuant to section 111.15 of the Revised Code, | 2164 |
the board shall submit to the Ohio retirement study council a copy | 2165 |
of the full text of the rule, and if applicable, a copy of the | 2166 |
rule summary and fiscal analysis required by division (B) of | 2167 |
section 127.18 of the Revised Code. | 2168 |
The board may sue and be sued, plead and be impleaded, | 2169 |
contract and be contracted with. All of its business shall be | 2170 |
transacted, all of its funds invested, all warrants for money | 2171 |
drawn and payments made, and all of its cash and securities and | 2172 |
other property shall be held in the name of the board, or in the | 2173 |
name of its nominee, provided that nominees are authorized by | 2174 |
retirement board resolution for the purpose of facilitating the | 2175 |
ownership and transfer of investments. | 2176 |
If the Ohio retirement study council establishes a uniform | 2177 |
format for any report the board is required to submit to the | 2178 |
council, the board shall submit the report in that format. | 2179 |
Sec. 145.092. (A) The public employees retirement board, in | 2180 |
consultation with the Ohio ethics commission, shall review any | 2181 |
existing policy regarding the travel and payment of travel | 2182 |
expenses of members and employees of the public employees | 2183 |
retirement board and adopt rules in accordance with section 145.09 | 2184 |
of the Revised Code establishing a new or revised policy regarding | 2185 |
travel and payment of travel expenses. Not less than sixty days | 2186 |
before adopting a new or revised policy, the board shall submit | 2187 |
the policy to the Ohio retirement study council for review. | 2188 |
(B) If the board intends to award a bonus to any employee of | 2189 |
the board, it shall adopt rules in accordance with section 145.09 | 2190 |
of the Revised Code establishing a policy regarding employee | 2191 |
bonuses. | 2192 |
(C) The board shall provide copies of the rules adopted under | 2193 |
divisions (A) and (B) of this section to each member of the Ohio | 2194 |
retirement study council; | 2195 |
(D) The board shall submit both of the following to the Ohio | 2196 |
retirement study council: | 2197 |
(1) A proposed operating budget, including an administrative | 2198 |
budget for the board, for the next immediate fiscal year and adopt | 2199 |
that budget not earlier than sixty days after it is submitted to | 2200 |
the council; | 2201 |
(2) A plan describing how the board will improve the | 2202 |
dissemination of public information pertaining to the board. | 2203 |
Sec. 145.093. The public employees retirement board shall, in | 2204 |
consultation with the Ohio ethics commission, develop an ethics | 2205 |
policy to govern board members and employees in the performance of | 2206 |
their official duties. The board shall submit this policy to the | 2207 |
commission for approval. | 2208 |
The commission shall review the policy and, if the commission | 2209 |
determines that the policy is adequate, approve the policy. If the | 2210 |
commission determines that the policy is inadequate, it shall | 2211 |
specify the revisions to be made and the board shall submit a | 2212 |
revised policy. If the commission approves the revised policy, the | 2213 |
board shall adopt it. If not, the board shall make any further | 2214 |
revisions required by the commission and adopt the policy. Not | 2215 |
less than sixty days before adopting the policy, the board shall | 2216 |
submit it to the Ohio retirement study council for review. | 2217 |
The board periodically shall provide ethics training to | 2218 |
members and employees of the board. The training shall include | 2219 |
training regarding the requirements and prohibitions of Chapter | 2220 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 2221 |
Revised Code and any other training the board considers | 2222 |
appropriate. | 2223 |
The board shall establish a procedure to ensure that each | 2224 |
employee of the board is informed of the procedure for filing a | 2225 |
complaint alleging violation of Chapter 102. of the Revised Code | 2226 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 2227 |
ethics commission or the appropriate prosecuting attorney. | 2228 |
Sec. 145.094. (A) The public employees retirement board | 2229 |
shall designate a person who is a licensed state retirement system | 2230 |
investment officer to be the chief investment officer for the | 2231 |
public employees retirement system. The board shall notify the | 2232 |
division of securities of the department of commerce in writing of | 2233 |
its designation and of any change in its designation within ten | 2234 |
calendar days of the designation or change. | 2235 |
(B) The chief investment officer shall reasonably supervise | 2236 |
the licensed state retirement system investment officers and other | 2237 |
persons employed by the public employees retirement system with a | 2238 |
view toward preventing violations of Chapter 1707. of the Revised | 2239 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 2240 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 2241 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 2242 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 2243 |
promulgated under those statutes. This duty of reasonable | 2244 |
supervision shall include the adoption, implementation, and | 2245 |
enforcement of written policies and procedures reasonably designed | 2246 |
to prevent persons employed by the public employees retirement | 2247 |
system from misusing material, nonpublic information in violation | 2248 |
of those laws, rules, and regulations. | 2249 |
For purposes of this division, no chief investment officer | 2250 |
shall be considered to have failed to satisfy the officer's duty | 2251 |
of reasonable supervision if the officer has done all of the | 2252 |
following: | 2253 |
(1) Adopted and implemented written procedures, and a system | 2254 |
for applying the procedures, that would reasonably be expected to | 2255 |
prevent and detect, insofar as practicable, any violation by its | 2256 |
licensed investment officers and other persons employed by the | 2257 |
public employees retirement system; | 2258 |
(2) Reasonably discharged the duties and obligations | 2259 |
incumbent on the chief investment officer by reason of the | 2260 |
established procedures and the system for applying the procedures | 2261 |
when the officer had no reasonable cause to believe that there was | 2262 |
a failure to comply with the procedures and systems; | 2263 |
(3) Reviewed, at least annually, the adequacy of the policies | 2264 |
and procedures established pursuant to this section and the | 2265 |
effectiveness of their implementation. | 2266 |
(C) The chief investment officer shall establish and maintain | 2267 |
a policy to monitor and evaluate the effectiveness of securities | 2268 |
transactions executed on behalf of the board. | 2269 |
No chief investment officer shall be considered to have | 2270 |
failed to satisfy the officer's duty under this division if the | 2271 |
officer has done both of the following: | 2272 |
(1) Implemented the policy adopted by the board under section | 2273 |
145.114 of the Revised Code that outlines the criteria used to | 2274 |
select agents that execute securities transactions on behalf of | 2275 |
the public employees retirement system. | 2276 |
(2) Reviewed, at least annually, the performance of agents | 2277 |
that execute securities transactions on behalf of the public | 2278 |
employees retirement system. | 2279 |
Sec. 145.095. The public employees retirement board shall | 2280 |
appoint a committee to oversee the selection of an internal | 2281 |
auditor. The committee shall select one or more persons for | 2282 |
employment as an internal auditor. The board shall employ the | 2283 |
person or persons selected by the committee. | 2284 |
The committee shall consist of the following board members: | 2285 |
one retirant member, one employee member, and the director of | 2286 |
administrative services. The committee shall annually prepare and | 2287 |
submit to the Ohio retirement study council a report of its | 2288 |
actions during the preceding year. | 2289 |
Sec. 145.11. (A) The members of the public employees | 2290 |
retirement board shall be the trustees of the funds created by | 2291 |
section 145.23 of the Revised Code. The board shall have full | 2292 |
power to invest the funds. The board and other fiduciaries shall | 2293 |
discharge their duties with respect to the funds solely in the | 2294 |
interest of the participants and beneficiaries; for the exclusive | 2295 |
purpose of providing benefits to participants and their | 2296 |
beneficiaries and defraying reasonable expenses of administering | 2297 |
the public employees retirement system; with care, skill, | 2298 |
prudence, and diligence under the circumstances then prevailing | 2299 |
that a prudent person acting in a like capacity and familiar with | 2300 |
these matters would use in the conduct of an enterprise of a like | 2301 |
character and with like aims; and by diversifying the investments | 2302 |
of the system so as to minimize the risk of large losses, unless | 2303 |
under the circumstances it is clearly prudent not to do so. | 2304 |
To facilitate investment of the funds, the board may | 2305 |
establish a partnership, trust, limited liability company, | 2306 |
corporation, including a corporation exempt from taxation under | 2307 |
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as | 2308 |
amended, or any other legal entity authorized to transact business | 2309 |
in this state. | 2310 |
(B) In exercising its fiduciary responsibility with respect | 2311 |
to the investment of the funds, it shall be the intent of the | 2312 |
board to give consideration to investments that enhance the | 2313 |
general welfare of the state and its citizens where the | 2314 |
investments offer quality, return, and safety comparable to other | 2315 |
investments currently available to the board. In fulfilling this | 2316 |
intent, equal consideration shall also be given to investments | 2317 |
otherwise qualifying under this section that involve minority | 2318 |
owned and controlled firms and firms owned and controlled by | 2319 |
women, either alone or in joint venture with other firms. | 2320 |
The board shall adopt, in regular meeting, policies, | 2321 |
objectives, or criteria for the operation of the investment | 2322 |
program that include asset allocation targets and ranges, risk | 2323 |
factors, asset class benchmarks, time horizons, total return | 2324 |
objectives, and performance evaluation guidelines. In adopting | 2325 |
policies and criteria for the selection of agents with whom the | 2326 |
board may contract for the administration of the funds, the board | 2327 |
shall comply with sections 145.114 and 145.116 of the Revised Code | 2328 |
and shall also give equal consideration to minority owned and | 2329 |
controlled firms, firms owned and controlled by women, and | 2330 |
ventures involving minority owned and controlled firms and firms | 2331 |
owned and controlled by women that otherwise meet the policies and | 2332 |
criteria established by the board. Amendments and additions to the | 2333 |
policies and criteria shall be adopted in regular meeting. The | 2334 |
board shall publish its policies, objectives, and criteria under | 2335 |
this provision no less often than annually and shall make copies | 2336 |
available to interested parties. | 2337 |
When reporting on the performance of investments, the board | 2338 |
shall comply with the performance presentation standards | 2339 |
established by the association for investment management and | 2340 |
research. | 2341 |
(C) All investments shall be purchased at current market | 2342 |
prices and the evidences of title of the investments shall be | 2343 |
placed in the hands of the treasurer of state, who is hereby | 2344 |
designated as custodian thereof, or in the hands of the treasurer | 2345 |
of state's authorized agent. Evidences of title of the investments | 2346 |
so purchased may be deposited by the treasurer of state for | 2347 |
safekeeping with an authorized agent, selected by the treasurer of | 2348 |
state, who is a qualified trustee under section 135.18 of the | 2349 |
Revised Code. The treasurer of state or the agent shall collect | 2350 |
the principal, dividends, distributions, and interest thereon as | 2351 |
they become due and payable and place them when so collected into | 2352 |
the custodial funds. | 2353 |
The treasurer of state shall pay for investments purchased by | 2354 |
the retirement board on receipt of written or electronic | 2355 |
instructions from the board or the board's designated agent | 2356 |
authorizing the purchase and pending receipt of the evidence of | 2357 |
title of the investment by the treasurer of state or the treasurer | 2358 |
of state's authorized agent. The board may sell investments held | 2359 |
by the board, and the treasurer of state or the treasurer of | 2360 |
state's authorized agent shall accept payment from the purchaser | 2361 |
and deliver evidence of title of the investment to the purchaser | 2362 |
on receipt of written or electronic instructions from the board or | 2363 |
the board's designated agent authorizing the sale, and pending | 2364 |
receipt of the moneys for the investments. The amount received | 2365 |
shall be placed in the custodial funds. The board and the | 2366 |
treasurer of state may enter into agreements to establish | 2367 |
procedures for the purchase and sale of investments under this | 2368 |
division and the custody of the investments. | 2369 |
(D) No purchase or sale of any investment shall be made under | 2370 |
this section except as authorized by the public employees | 2371 |
retirement board. | 2372 |
(E) Any statement of financial position distributed by the | 2373 |
board shall include the fair value, as of the statement date, of | 2374 |
all investments held by the board under this section. | 2375 |
Sec. 145.114. (A) As used in this section and in section | 2376 |
145.116 of the Revised Code: | 2377 |
(1) "Agent" means a dealer, as defined in section 1707.01 of | 2378 |
the Revised Code, who is licensed under sections 1707.01 to | 2379 |
1707.45 of the Revised Code or under comparable laws of another | 2380 |
state or of the United States. | 2381 |
(2) "Minority business enterprise" has the same meaning as in | 2382 |
section 122.71 of the Revised Code. | 2383 |
(3) "Ohio-qualified agent" means an agent designated as such | 2384 |
by the public employees retirement board. | 2385 |
(4) "Ohio-qualified investment manager" means an investment | 2386 |
manager designated as such by the public employees retirement | 2387 |
board. | 2388 |
(5) "Principal place of business" means an office in which | 2389 |
the agent regularly provides securities or investment advisory | 2390 |
services and solicits, meets with, or otherwise communicates with | 2391 |
clients. | 2392 |
(B) The public employees retirement board shall, for the | 2393 |
purposes of this section, designate an agent as an Ohio-qualified | 2394 |
agent if the agent meets all of the following requirements: | 2395 |
(1) The agent is subject to taxation under Chapter 5725., | 2396 |
5733., or 5747. of the Revised Code; | 2397 |
(2) The agent is authorized to conduct business in this | 2398 |
state; | 2399 |
(3) The agent maintains a principal place of business in this | 2400 |
state and employs at least five residents of this state. | 2401 |
(C) The public employees retirement board shall adopt and | 2402 |
implement a written policy to establish criteria and procedures | 2403 |
used to select agents to execute securities transactions on behalf | 2404 |
of the retirement system. The policy shall address each of the | 2405 |
following: | 2406 |
(1) Commissions charged by the agent, both in the aggregate | 2407 |
and on a per share basis; | 2408 |
(2) The execution speed and trade settlement capabilities of | 2409 |
the agent; | 2410 |
(3) The responsiveness, reliability, and integrity of the | 2411 |
agent; | 2412 |
(4) The nature and value of research provided by the agent; | 2413 |
(5) Any special capabilities of the agent. | 2414 |
(D)(1) The board shall, at least annually, establish a policy | 2415 |
with the goal to increase utilization by the board of | 2416 |
Ohio-qualified agents for the execution of domestic equity and | 2417 |
fixed income trades on behalf of the retirement system, when an | 2418 |
Ohio-qualified agent offers quality, services, and safety | 2419 |
comparable to other agents otherwise available to the board and | 2420 |
meets the criteria established under division (C) of this section. | 2421 |
(2) The board shall review, at least annually, the | 2422 |
performance of the agents that execute securities transactions on | 2423 |
behalf of the board. | 2424 |
(3) The board shall determine whether an agent is an | 2425 |
Ohio-qualified agent, meets the criteria established by the board | 2426 |
pursuant to division (C) of this section, and offers quality, | 2427 |
services, and safety comparable to other agents otherwise | 2428 |
available to the board. The board's determination shall be final. | 2429 |
(E) The board shall, at least annually, submit to the Ohio | 2430 |
retirement study council a report containing the following | 2431 |
information: | 2432 |
(1) The name of each agent designated as an Ohio-qualified | 2433 |
agent under this section; | 2434 |
(2) The name of each agent that executes securities | 2435 |
transactions on behalf of the board; | 2436 |
(3) The amount of equity and fixed-income trades that are | 2437 |
executed by Ohio-qualified agents, expressed as a percentage of | 2438 |
all equity and fixed-income trades that are executed by agents on | 2439 |
behalf of the board; | 2440 |
(4) The compensation paid to Ohio-qualified agents, expressed | 2441 |
as a percentage of total compensation paid to all agents that | 2442 |
execute securities transactions on behalf of the board; | 2443 |
(5) The amount of equity and fixed-income trades that are | 2444 |
executed by agents that are minority business enterprises, | 2445 |
expressed as a percentage of all equity and fixed-income trades | 2446 |
that are executed by agents on behalf of the board; | 2447 |
(6) Any other information requested by the Ohio retirement | 2448 |
study council regarding the board's use of agents. | 2449 |
Sec. 145.115. (A) The public employees retirement system | 2450 |
shall disclose the following to the Ohio ethics commission: | 2451 |
(1) Anything of value received by the system from an agent | 2452 |
and anything of value given on behalf of the system by an agent; | 2453 |
(2) The name of any employee of the system with authority | 2454 |
over the investment of retirement system funds or any board member | 2455 |
of the system who deals with an agent regarding amounts described | 2456 |
in division (A)(1) of this section. | 2457 |
(B) The disclosures required by this section shall be made | 2458 |
annually in a report submitted by a date prescribed by the Ohio | 2459 |
ethics commission. | 2460 |
Sec. 145.116. (A) The public employees retirement board | 2461 |
shall, for the purposes of this section, designate an investment | 2462 |
manager as an Ohio-qualified investment manager if the investment | 2463 |
manager meets all of the following requirements: | 2464 |
(1) The investment manager is subject to taxation under | 2465 |
Chapter 5725., 5733., or 5747. of the Revised Code; | 2466 |
(2) The investment manager meets one of the following | 2467 |
requirements: | 2468 |
(a) Has its corporate headquarters or principal place of | 2469 |
business in this state; | 2470 |
(b) Employs at least five hundred individuals in this state; | 2471 |
(c) Has a principal place of business in this state and | 2472 |
employs at least 20 residents of this state. | 2473 |
(B)(1) The board shall, at least annually, establish a policy | 2474 |
with the goal to increase utilization by the board of | 2475 |
Ohio-qualified investment managers, when an Ohio-qualified | 2476 |
investment manager offers quality, services, and safety comparable | 2477 |
to other investment managers otherwise available to the board. The | 2478 |
policy shall also provide for the following: | 2479 |
(a) A process whereby the board can develop a list of | 2480 |
Ohio-qualified investment managers and their investment products; | 2481 |
(b) A process whereby the board can give public notice to | 2482 |
Ohio-qualified investment managers of the board's search for an | 2483 |
investment manager that includes the board's search criteria. | 2484 |
(2) The board shall determine whether an investment manager | 2485 |
is an Ohio-qualified investment manager and whether the investment | 2486 |
manager offers quality, services, and safety comparable to other | 2487 |
investment managers otherwise available to the board. The board's | 2488 |
determination shall be final. | 2489 |
(C) The board shall, at least annually, submit to the Ohio | 2490 |
retirement study council a report containing the following | 2491 |
information: | 2492 |
(1) The name of each investment manager designated as an | 2493 |
Ohio-qualified investment manager under this section; | 2494 |
(2) The name of each investment manager with which the board | 2495 |
contracts; | 2496 |
(3) The amount of assets managed by Ohio-qualified investment | 2497 |
managers, expressed as a percentage of the total assets held by | 2498 |
the retirement system and as a percentage of assets managed by | 2499 |
investment managers with which the board has contracted; | 2500 |
(4) The compensation paid to Ohio-qualified investment | 2501 |
managers, expressed as a percentage of total compensation paid to | 2502 |
all investment managers with which the board has contracted; | 2503 |
(5) Any other information requested by the Ohio retirement | 2504 |
study council regarding the board's use of investment managers. | 2505 |
Sec. 145.19. (A) Except as provided in division (D) of this | 2506 |
section, an individual who becomes employed in a position subject | 2507 |
to this chapter on or after the date on which the public employees | 2508 |
retirement board first establishes a PERS defined contribution | 2509 |
plan shall make an election under this section. Not later than one | 2510 |
hundred eighty days after the date on which employment begins, the | 2511 |
individual shall elect to participate either in the PERS defined | 2512 |
benefit plan or a PERS defined contribution plan. If a form | 2513 |
evidencing an election under this section is not received by the | 2514 |
public employees retirement system not later than the last day of | 2515 |
the one-hundred-eighty-day period, the individual is deemed to | 2516 |
have elected to participate in the PERS defined benefit plan. | 2517 |
(B) An election under this section shall be made in writing | 2518 |
on a form provided by the system and filed with the system. | 2519 |
(C) An election under this section shall take effect on the | 2520 |
date employment began and, except as provided in section 145.814 | 2521 |
of the Revised Code or rules governing the PERS defined benefit | 2522 |
plan, is irrevocable on receipt by the system. | 2523 |
(D) An individual is ineligible to make an election under | 2524 |
this section if one of the following applies: | 2525 |
(1) At the time employment begins, the individual is a PERS | 2526 |
retirant or other system retirant, as those terms are defined in | 2527 |
section 145.38 of the Revised Code, or is retired under section | 2528 |
145.383 of the Revised Code. | 2529 |
(2) The individual is participating or has elected to | 2530 |
participate in an alternative retirement plan under section | 2531 |
3305.05 or 3305.051 of the Revised Code and the employment is in a | 2532 |
position
that is subject to
division | 2533 |
3305.05 or division (F) of section 3305.051 of the Revised Code. | 2534 |
(3) The individual is a contributor who, as of the last day | 2535 |
of the month prior to the date employment begins, has five or more | 2536 |
years of total service credit. | 2537 |
(4) The individual is employed in a position covered under | 2538 |
this chapter to which section 145.193 of the Revised Code applies. | 2539 |
(5) The individual is a PERS law enforcement officer or | 2540 |
Hamilton county municipal court bailiff. | 2541 |
Sec. 145.193. Except as provided in division | 2542 |
section 3305.05 and division (F) of section 3305.051 of the | 2543 |
Revised Code, an election made or deemed to have been made under | 2544 |
section 145.19 or 145.191 of the Revised Code applies to all | 2545 |
positions subject to this chapter for which the member is | 2546 |
contributing under section 145.47 or 145.85 of the Revised Code. A | 2547 |
member who terminates employment in all positions subject to this | 2548 |
chapter and later becomes employed in a position subject to this | 2549 |
chapter may make an election under section 145.19 of the Revised | 2550 |
Code as provided by that section. | 2551 |
Sec. 145.27. (A)(1) As used in this division, "personal | 2552 |
history record" means information maintained by the public | 2553 |
employees retirement board on an individual who is a member, | 2554 |
former member, contributor, former contributor, retirant, or | 2555 |
beneficiary that includes the address, telephone number, social | 2556 |
security number, record of contributions, correspondence with the | 2557 |
public employees retirement system, or other information the board | 2558 |
determines to be confidential. | 2559 |
(2) The records of the board shall be open to public | 2560 |
inspection, except that the following shall be excluded, except | 2561 |
with the written authorization of the individual concerned: | 2562 |
(a) The individual's statement of previous service and other | 2563 |
information as provided for in section 145.16 of the Revised Code; | 2564 |
(b) The amount of a monthly allowance or benefit paid to the | 2565 |
individual; | 2566 |
(c) The individual's personal history record. | 2567 |
(B) All medical reports and recommendations required by this | 2568 |
chapter are privileged, except that copies of such medical reports | 2569 |
or recommendations shall be made available to the personal | 2570 |
physician, attorney, or authorized agent of the individual | 2571 |
concerned upon written release from the individual or the | 2572 |
individual's agent, or when necessary for the proper | 2573 |
administration of the fund, to the board assigned physician. | 2574 |
(C) Any person who is a member or contributor of the system | 2575 |
shall be furnished with a statement of the amount to the credit of | 2576 |
the individual's account upon written request. The board is not | 2577 |
required to answer more than one such request of a person in any | 2578 |
one year. The board may issue annual statements of accounts to | 2579 |
members and contributors. | 2580 |
(D) Notwithstanding the exceptions to public inspection in | 2581 |
division (A)(2) of this section, the board may furnish the | 2582 |
following information: | 2583 |
(1) If a member, former member, contributor, former | 2584 |
contributor, or retirant is subject to an order issued under | 2585 |
section 2907.15 of the Revised Code or is convicted of or pleads | 2586 |
guilty to a violation of section 2921.41 of the Revised Code, on | 2587 |
written request of a prosecutor as defined in section 2935.01 of | 2588 |
the Revised Code, the board shall furnish to the prosecutor the | 2589 |
information requested from the individual's personal history | 2590 |
record. | 2591 |
(2) Pursuant to a court or administrative order issued | 2592 |
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised | 2593 |
Code, the board shall furnish to a court or child support | 2594 |
enforcement agency the information required under that section. | 2595 |
(3) At the written request of any person, the board shall | 2596 |
provide to the person a list of the names and addresses of | 2597 |
members, former members, contributors, former contributors, | 2598 |
retirants, or beneficiaries. The costs of compiling, copying, and | 2599 |
mailing the list shall be paid by such person. | 2600 |
(4) Within fourteen days after receiving from the director of | 2601 |
job and family services a list of the names and social security | 2602 |
numbers of recipients of public assistance pursuant to section | 2603 |
5101.181 of the Revised Code, the board shall inform the auditor | 2604 |
of state of the name, current or most recent employer address, and | 2605 |
social security number of each member whose name and social | 2606 |
security number are the same as that of a person whose name or | 2607 |
social security number was submitted by the director. The board | 2608 |
and its employees shall, except for purposes of furnishing the | 2609 |
auditor of state with information required by this section, | 2610 |
preserve the confidentiality of recipients of public assistance in | 2611 |
compliance with division (A) of section 5101.181 of the Revised | 2612 |
Code. | 2613 |
(5) The system shall comply with orders issued under section | 2614 |
3105.87 of the Revised Code. | 2615 |
On the written request of an alternate payee, as defined in | 2616 |
section 3105.80 of the Revised Code, the system shall furnish to | 2617 |
the alternate payee information on the amount and status of any | 2618 |
amounts payable to the alternate payee under an order issued under | 2619 |
section 3105.171 or 3105.65 of the Revised Code. | 2620 |
(6) At the request of any person, the board shall make | 2621 |
available to the person copies of all documents, including | 2622 |
resumes, in the board's possession regarding filling a vacancy of | 2623 |
an employee member or retirant member of the board. The person who | 2624 |
made the request shall pay the cost of compiling, copying, and | 2625 |
mailing the documents. The information described in this division | 2626 |
is a public record. | 2627 |
(E) A statement that contains information obtained from the | 2628 |
system's records that is signed by the executive director or an | 2629 |
officer of the system and to which the system's official seal is | 2630 |
affixed, or copies of the system's records to which the signature | 2631 |
and seal are attached, shall be received as true copies of the | 2632 |
system's records in any court or before any officer of this state. | 2633 |
Sec. 145.40. (A)(1) Subject to the provisions of section | 2634 |
145.57 of the Revised Code and except as provided in section | 2635 |
145.402 of the Revised Code and division (B) of this section, if a | 2636 |
member elects to become exempt from contribution to the public | 2637 |
employees retirement system pursuant to section 145.03 of the | 2638 |
Revised Code or ceases to be a public employee for any cause other | 2639 |
than death, retirement, receipt of a disability benefit, or | 2640 |
current employment in a position in which the member has elected | 2641 |
to participate in an alternative retirement plan under section | 2642 |
3305.05 or 3305.051 of the Revised Code, upon application the | 2643 |
public employees retirement board shall pay the member the | 2644 |
member's accumulated contributions, plus any applicable amount | 2645 |
calculated under section 145.401 of the Revised Code, provided | 2646 |
that both the following apply: | 2647 |
(a) Three months have elapsed since the member's service | 2648 |
subject to this chapter, other than service exempted from | 2649 |
contribution pursuant to section 145.03 of the Revised Code, was | 2650 |
terminated; | 2651 |
(b) The member has not returned to service subject to this | 2652 |
chapter, other than service exempted from contribution pursuant to | 2653 |
section 145.03 of the Revised Code, during that three-month | 2654 |
period. | 2655 |
The payment of such accumulated contributions shall cancel | 2656 |
the total service credit of such member in the public employees | 2657 |
retirement system. | 2658 |
(2) A member described in division (A)(1) of this section who | 2659 |
is married at the time of application for payment and is eligible | 2660 |
for age and service retirement under section 145.32, 145.33, | 2661 |
145.331, or 145.34 of the Revised Code shall submit with the | 2662 |
application a written statement by the member's spouse attesting | 2663 |
that the spouse consents to the payment of the member's | 2664 |
accumulated contributions. Consent shall be valid only if it is | 2665 |
signed and witnessed by a notary public. | 2666 |
The board may waive the requirement of consent if the spouse | 2667 |
is incapacitated or cannot be located, or for any other reason | 2668 |
specified by the board. Consent or waiver is effective only with | 2669 |
regard to the spouse who is the subject of the consent or waiver. | 2670 |
(B) This division applies to any member who is employed in a | 2671 |
position in which the member has made an election under section | 2672 |
3305.05 or 3305.051 of the Revised Code and due to the election | 2673 |
ceases to be a public employee for purposes of that position. | 2674 |
Subject to section 145.57 of the Revised Code, the public | 2675 |
employees retirement system shall do the following: | 2676 |
(1) On receipt of a certified copy of a form evidencing an | 2677 |
election under section 3305.05 or 3305.051 of the Revised Code, | 2678 |
pay to the appropriate provider, in accordance with section | 2679 |
2680 | |
section | 2681 |
(2) If a member has accumulated contributions, in addition to | 2682 |
those subject to division (B)(1) of this section, standing to the | 2683 |
credit of the member's individual account and is not otherwise | 2684 |
employed in a position in which the member is considered a public | 2685 |
employee for the purposes of that position, pay, to the provider | 2686 |
the member selected pursuant to section 3305.05 or 3305.051 of the | 2687 |
Revised Code, the member's accumulated contributions. The payment | 2688 |
shall be made on the member's application. | 2689 |
(C) Payment of a member's accumulated contributions under | 2690 |
division (B) of this section cancels the member's total service | 2691 |
credit in the public employees retirement system. A member whose | 2692 |
accumulated contributions are paid to a provider pursuant to | 2693 |
division (B) of this section is forever barred from claiming or | 2694 |
purchasing service credit under the public employees retirement | 2695 |
system for the period of employment attributable to those | 2696 |
contributions. | 2697 |
Sec. 145.99. (A) Whoever violates division (A) of section | 2698 |
145.054 of the Revised Code shall be fined not more than one | 2699 |
hundred dollars for each day of the violation. | 2700 |
(B) Whoever violates division (B) of section 145.054 of the | 2701 |
Revised Code shall be imprisoned for not more than six months or | 2702 |
fined not more than five thousand dollars, or both. | 2703 |
(C) Fines imposed by the Ohio elections commission under this | 2704 |
section shall be paid into the Ohio elections commission fund | 2705 |
created under section 3513.10 of the Revised Code. | 2706 |
Sec. 171.01. | 2707 |
retirement systems" means the public employees retirement system, | 2708 |
Ohio police and fire pension fund, state teachers retirement | 2709 |
system, school employees retirement system, and state highway | 2710 |
patrol retirement system. | 2711 |
There is hereby created the Ohio retirement
study council | 2712 |
2713 | |
appointed as follows: | 2714 |
(A) Three members of the senate, appointed by the president | 2715 |
of the senate, not more than two of whom may be members of the | 2716 |
same political party; | 2717 |
(B) Three members of the house of representatives, appointed | 2718 |
by the speaker of the house of representatives, not more than two | 2719 |
of whom may be members of the same political party; | 2720 |
(C) Three members appointed by the governor, with the advice | 2721 |
and consent of the senate, not more than two of whom shall be | 2722 |
members of the same political party, one of whom shall represent | 2723 |
the state and its employees; one of whom shall represent nonstate | 2724 |
governments and their employees; and one of whom shall represent | 2725 |
educational employers and their employees. Of these three members, | 2726 |
at least one shall be a person with investment expertise. Terms of | 2727 |
the existing members appointed by the governor shall not be | 2728 |
affected. Terms of office of members appointed by the governor | 2729 |
shall be for three years, commencing on the first day of July and | 2730 |
ending on the thirtieth day of June. Each member appointed by the | 2731 |
governor shall hold office from the date of appointment until the | 2732 |
end of the term for which the appointment was made. Any member | 2733 |
appointed by the governor to fill a vacancy occurring prior to the | 2734 |
expiration of the term for which the member's predecessor was | 2735 |
appointed shall hold office for the remainder of such term. | 2736 |
Each member appointed by the governor shall continue in office | 2737 |
2738 | |
2739 | |
2740 | |
is appointed and qualified, notwithstanding the expiration of the | 2741 |
member's term of office. | 2742 |
(D) Five ex officio members as follows: the executive | 2743 |
director of the public employees retirement system, the executive | 2744 |
director of the state teachers retirement system, the executive | 2745 |
director of the school employees retirement system, the executive | 2746 |
secretary of the Ohio police and fire pension fund, and the | 2747 |
secretary of the state highway patrol retirement board, who shall | 2748 |
be nonvoting members. | 2749 |
A vacancy on the council shall be filled by the person | 2750 |
qualified to make the original appointment for the unexpired term, | 2751 |
in the same manner as the original appointment. | 2752 |
The members of the council who are appointed from the | 2753 |
membership of the senate and the house of representatives shall | 2754 |
serve during their terms as members of the general assembly and | 2755 |
until their successors are appointed and qualified, | 2756 |
notwithstanding the adjournment of the general assembly of which | 2757 |
they are members or the expiration of their terms as members of | 2758 |
such general assembly. | 2759 |
Sec. 171.03. The Ohio retirement study council may: | 2760 |
(A) Appoint a director to manage and direct the duties of the | 2761 |
staff of the council. The director shall be a person who has had | 2762 |
training and experience in areas related to the duties of the | 2763 |
council. | 2764 |
(B) Appoint such professional, technical, and clerical | 2765 |
employees as are necessary, and employ or hire on a consulting | 2766 |
basis such actuarial, legal, investment, or other technical | 2767 |
services required for the performance of its duties; | 2768 |
(C) Fix the compensation of the director and all other | 2769 |
employees of the council. The employees of the council shall be | 2770 |
members of the public employees retirement system. | 2771 |
(D) Require the public employees retirement board, the state | 2772 |
teachers retirement board, the school employees retirement board, | 2773 |
the state highway patrol retirement system, the Ohio police and | 2774 |
fire pension fund, and any agency or official of this state or its | 2775 |
political subdivisions to provide it with any information | 2776 |
necessary to carry out its duties; | 2777 |
(E) Administer oaths and hold public hearings at such times | 2778 |
and places within the state as may be necessary to accomplish the | 2779 |
purposes and intent of Chapter 171. of the Revised Code; | 2780 |
(F) Establish a uniform format for any report that the boards | 2781 |
of the state retirement systems are required to submit to the | 2782 |
council and regular reporting requirements; | 2783 |
(G) Request that the auditor of state perform or contract for | 2784 |
the performance of a financial or special audit of a state | 2785 |
retirement system; | 2786 |
(H) Review all proposed rules submitted to the council | 2787 |
pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04 | 2788 |
of the Revised Code and submit any recommendations to the joint | 2789 |
committee on agency rule review. | 2790 |
Sec. 171.04. The Ohio retirement study council shall: | 2791 |
(A) Make an impartial review from time to time of all laws | 2792 |
governing the administration and financing of the pension and | 2793 |
retirement funds under Chapters 145., 146., 742., 3307., 3309., | 2794 |
and 5505. of the Revised Code and recommend to the general | 2795 |
assembly any changes it may find desirable with respect to the | 2796 |
allowances and benefits, sound financing of the cost of benefits, | 2797 |
the prudent investment of funds, and the improvement of the | 2798 |
language, structure, and organization of the laws; | 2799 |
(B) Make an annual report to the governor and to the general | 2800 |
assembly covering its evaluation and recommendations with respect | 2801 |
to the operations of the state retirement systems and their funds; | 2802 |
(C) Study all changes in the retirement laws proposed to the | 2803 |
general assembly and report to the general assembly on their | 2804 |
probable costs, actuarial implications, and desirability as a | 2805 |
matter of public policy; | 2806 |
(D) Review semiannually the policies, objectives, and | 2807 |
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15, | 2808 |
and 5505.06 of the Revised Code for the operation of the | 2809 |
investment programs of the state retirement systems, including a | 2810 |
review of asset allocation targets and ranges, risk factors, asset | 2811 |
class benchmarks, time horizons, total return objectives, relative | 2812 |
volatility, and performance evaluation guidelines. The council | 2813 |
shall, not later than thirty days after completing a review, | 2814 |
submit to the governor and the general assembly a report | 2815 |
summarizing its findings. | 2816 |
(E) Have prepared by an independent actuary, at least once | 2817 |
every ten years, an actuarial review of the annual actuarial | 2818 |
valuations and quinquennial actuarial investigations prepared | 2819 |
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of | 2820 |
the Revised Code, including a review of the actuarial assumptions | 2821 |
and methods, the data underlying the valuations and | 2822 |
investigations, and the adequacy of each system's employee and | 2823 |
employer contribution rates to amortize its unfunded actuarial | 2824 |
pension liability, if any, and to support the payment of benefits | 2825 |
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the | 2826 |
Revised Code. The council shall submit to the governor and the | 2827 |
general assembly a report summarizing the review. | 2828 |
(F) Have conducted by an independent auditor at least once | 2829 |
every ten years a fiduciary performance audit of each of the state | 2830 |
retirement systems. | 2831 |
All costs associated with an audit conducted pursuant to | 2832 |
division (F) of this section shall be paid by the retirement | 2833 |
system audited. | 2834 |
(G) Provide each member of the council with copies of all | 2835 |
proposed rules submitted to the council pursuant to sections | 2836 |
145.09, 742.10, 3307.04, 3309.04, and 5505.04 of the Revised Code | 2837 |
and submit any recommendations to the joint committee on agency | 2838 |
rule review. | 2839 |
Sec. 171.06. The attorney general is the legal adviser to the | 2840 |
Ohio retirement study council. | 2841 |
Sec. 171.50. The boards of the state retirement systems shall | 2842 |
jointly develop a retirement board member education program and | 2843 |
submit the program to the Ohio retirement study council. | 2844 |
The boards shall jointly pay all costs associated with | 2845 |
establishing and conducting the retirement board member education | 2846 |
program. | 2847 |
The retirement board member education program shall consist | 2848 |
of an orientation component for newly elected and appointed | 2849 |
members and a continuing education component for board members who | 2850 |
have served for at least one year. The program shall incorporate | 2851 |
into its curriculum each of the following topics: board member | 2852 |
duties and responsibilities, retirement system member benefits and | 2853 |
health care management, ethics, governance processes and | 2854 |
procedures, actuarial soundness, investments, and any other | 2855 |
subject matter the boards believe is reasonably related to the | 2856 |
duties of a board member. | 2857 |
All program sessions, classes, and other events shall be held | 2858 |
in Ohio. | 2859 |
Sec. 742.03. (A) As used in this section and in sections | 2860 |
742.04 and 742.05 of the Revised Code: | 2861 |
(1) "Police officer" means a member of the fund who is or has | 2862 |
been an employee of a police department and is not a police | 2863 |
retirant. | 2864 |
(2) "Firefighter" means a member of the fund who is or has | 2865 |
been an employee of a fire department and is not a firefighter | 2866 |
retirant. | 2867 |
(3) "Firefighter retirant" means a member of the fund who is | 2868 |
receiving an age and service or disability benefit as a result of | 2869 |
service in a fire department or a surviving spouse of a deceased | 2870 |
member who is receiving a benefit as a result of the deceased | 2871 |
member's service in a fire department. "Firefighter retirant" does | 2872 |
not include a member of the fund who is participating in the | 2873 |
deferred retirement option plan established under section 742.43 | 2874 |
of the Revised Code. | 2875 |
(4) "Police retirant" means a member of the fund who is | 2876 |
receiving an age and service or disability benefit as a result of | 2877 |
service in a police department or a surviving spouse of a deceased | 2878 |
member who is receiving a benefit as a result of the deceased | 2879 |
member's service in a police department. "Police retirant" does | 2880 |
not include a member of the fund who is participating in the | 2881 |
deferred retirement option plan established under section 742.43 | 2882 |
of the Revised Code. | 2883 |
(B) The administration, control, and management of the Ohio | 2884 |
police and fire pension fund, created under section 742.02 of the | 2885 |
Revised Code, is vested in a board of trustees of the Ohio police | 2886 |
and fire pension fund,
which shall consist of | 2887 |
members | 2888 |
(1) | 2889 |
| 2890 |
| 2891 |
2892 | |
2893 | |
2894 | |
2895 | |
2896 | |
2897 | |
2898 | |
2899 | |
2900 | |
2901 | |
2902 | |
2903 |
| 2904 |
designee, who shall be appointed by the treasurer of state for a | 2905 |
term of four years and have the following qualifications: | 2906 |
(a) The member is a resident of this state. | 2907 |
(b) Within the three years immediately preceding the | 2908 |
appointment, the member has not been employed by the public | 2909 |
employees retirement system, police and fire pension fund, state | 2910 |
teachers retirement system, school employees retirement system, or | 2911 |
state highway patrol retirement system or by any person, | 2912 |
partnership, or corporation that has provided to one of those | 2913 |
retirement systems services of a financial or investment nature, | 2914 |
including management, analysis, supervision, or investment of | 2915 |
assets. | 2916 |
(c) The member has direct experience in the management, | 2917 |
analysis, supervision, or investment of assets. | 2918 |
(d) The member is not currently employed by the state or a | 2919 |
political subdivision of the state. | 2920 |
(2) Two members, known as the investment expert members, who | 2921 |
shall be appointed for four-year terms. One investment expert | 2922 |
member shall be appointed by the governor, and one investment | 2923 |
expert member shall be jointly appointed by the speaker of the | 2924 |
house of representatives and the president of the senate. Each | 2925 |
investment expert member shall have the following qualifications: | 2926 |
(a) Each member shall be a resident of this state. | 2927 |
(b) Within the three years immediately preceding the | 2928 |
appointment, each member shall not have been employed by the | 2929 |
public employees retirement system, police and fire pension fund, | 2930 |
state teachers retirement system, school employees retirement | 2931 |
system, or state highway patrol retirement system or by any | 2932 |
person, partnership, or corporation that has provided to one of | 2933 |
those retirement systems services of a financial or investment | 2934 |
nature, including the management, analysis, supervision, or | 2935 |
investment of assets. | 2936 |
(c) Each member shall have direct experience in the | 2937 |
management, analysis, supervision, or investment of assets. | 2938 |
Any investment expert member appointed to fill a vacancy | 2939 |
occurring prior to the expiration of the term for which the | 2940 |
member's predecessor was appointed shall hold office until the end | 2941 |
of such term. The member shall continue in office subsequent to | 2942 |
the expiration date of the member's term until the member's | 2943 |
successor takes office, or until a period of sixty days has | 2944 |
elapsed, whichever occurs first. | 2945 |
(3) Four members known as employee members. | 2946 |
Two employee members shall be police officers elected by | 2947 |
police officers. Two employee members shall be firefighters | 2948 |
elected by firefighters. Employee members of the board shall be | 2949 |
elected for terms of four years as provided by section 742.04 of | 2950 |
the Revised Code. | 2951 |
| 2952 |
who shall be a resident of this state elected by the firefighter | 2953 |
retirants. The firefighter retirant member shall be elected for a | 2954 |
term of four years as provided by section 742.04 of the Revised | 2955 |
Code. | 2956 |
| 2957 |
shall be a resident of this state elected by the police retirants. | 2958 |
The police retirant member shall be elected for a term of four | 2959 |
years as provided by section 742.04 of the Revised Code. | 2960 |
(C) No employee member of the board who retires while a | 2961 |
member of the board shall be eligible to become a retirant member | 2962 |
for three years after the date of the member's retirement. | 2963 |
(D) Any investment expert member appointed to fill a vacancy | 2964 |
occurring prior to the expiration of the term for which the | 2965 |
member's predecessor was appointed holds office until the end of | 2966 |
such term. The member continues in office subsequent to the | 2967 |
expiration date of the member's term until the member's successor | 2968 |
takes office, or until a period of sixty days has elapsed, | 2969 |
whichever occurs first. | 2970 |
Sec. 742.031. Each newly elected member of the board of | 2971 |
trustees of the Ohio police and fire pension fund and each | 2972 |
individual appointed to fill a vacancy on the board, shall, not | 2973 |
later than ninety days after commencing service as a board member, | 2974 |
complete the orientation program component of the retirement board | 2975 |
member education program established under section 171.50 of the | 2976 |
Revised Code. | 2977 |
Each member of the board who has served a year or longer as a | 2978 |
board member shall, not less than twice each year, attend one or | 2979 |
more programs that are part of the continuing education component | 2980 |
of the retirement board member education program established under | 2981 |
section 171.50 of the Revised Code. | 2982 |
Sec. 742.032. A person who served as an elected or appointed | 2983 |
member of the board of trustees of the Ohio police and fire | 2984 |
pension fund for one or more entire fiscal years in fiscal years | 2985 |
2000, 2001, or 2002 is ineligible for re-election or reappointment | 2986 |
to the board if the board paid travel-related expenses of the | 2987 |
person or reimbursed the person for travel-related expenses that | 2988 |
averaged more than ten thousand dollars annually for those fiscal | 2989 |
years. | 2990 |
Sec. 742.04. As used in this section, "county" means the | 2991 |
county of residence of an individual who signs a nominating | 2992 |
petition. | 2993 |
Election of the employee members, firefighter retirant | 2994 |
member, and police retirant member of the board of trustees of the | 2995 |
Ohio police and fire pension fund shall be under the supervision | 2996 |
and direction of the board in accordance with rules adopted under | 2997 |
section 742.045 of the Revised Code. | 2998 |
Nominating petitions for candidates for an employee member of | 2999 |
the board elected by police officers shall be signed by at least | 3000 |
one hundred police officers, with at least twenty signers from | 3001 |
each of at least five counties of the state, and certified in | 3002 |
accordance with rules adopted under section 742.045 of the Revised | 3003 |
Code. | 3004 |
Nominating petitions for candidates for an employee member of | 3005 |
the board elected by firefighters shall be signed by at least one | 3006 |
hundred firefighters, with at least twenty signers from each of at | 3007 |
least five counties of the state, and certified in accordance with | 3008 |
rules adopted under section 742.045 of the Revised Code. | 3009 |
Nominating petitions for candidates for an employee member of | 3010 |
the board shall be filed in the office of the board not later than | 3011 |
four p.m. on the first Monday in April preceding the date of the | 3012 |
expiration of the term of the employee member of the board whose | 3013 |
successor is to be elected. | 3014 |
| 3015 |
3016 |
The board shall cause ballots to be prepared for the election | 3017 |
of employee members of the board which shall contain the names of | 3018 |
all candidates for whom | 3019 |
been filed with the board. | 3020 |
A police officer or firefighter is eligible to vote in an | 3021 |
election if the police officer or firefighter is a member of the | 3022 |
fund on the first Monday in March preceding the date of the | 3023 |
expiration of the term of the employee member of the board whose | 3024 |
successor is to be elected. The board shall determine whether a | 3025 |
member of the fund is eligible to vote at an election and its | 3026 |
decision shall be final. | 3027 |
On or before the first Monday in May preceding the date of | 3028 |
the expiration of the term of the employee member of the board | 3029 |
whose successor is to be elected, the board shall cause ballots to | 3030 |
be sent to each member of the fund who is eligible to vote at such | 3031 |
election to the address of such member as shown on the records of | 3032 |
the board. | 3033 |
Ballots shall be returned to the board not later than the | 3034 |
third Tuesday in May following the date that the ballots were | 3035 |
mailed to the members of the fund eligible to vote at such | 3036 |
election. | 3037 |
| 3038 |
3039 | |
with rules adopted under section 742.045 of the Revised Code, the | 3040 |
person receiving the highest number of votes shall be elected as | 3041 |
an employee member of the board for a term of four years beginning | 3042 |
on the first Monday in June following such election. | 3043 |
Nominating petitions for candidates for the police retirant | 3044 |
member of the board shall be signed by at least fifty police | 3045 |
retirants, with at least ten signers from at least five counties | 3046 |
of the state, and certified in accordance with rules adopted under | 3047 |
section 742.045 of the Revised Code. | 3048 |
Nominating petitions for candidates for the firefighter | 3049 |
retirant member of the board shall be signed by at least fifty | 3050 |
firefighter retirants, with at least ten signers from at least | 3051 |
five counties of the state, and certified in accordance with rules | 3052 |
adopted under section 742.045 of the Revised Code. | 3053 |
Nominating petitions for candidates for the retirant members | 3054 |
of the board shall be filed in the office of the board not later | 3055 |
than four p.m. on the first Monday in April preceding the date of | 3056 |
the expiration of the term of the retirant member of the board | 3057 |
whose successor is to be elected. | 3058 |
| 3059 |
3060 |
The board shall cause ballots to be prepared for the election | 3061 |
of these board members which shall contain the names of all | 3062 |
candidates for whom | 3063 |
been filed with the board. | 3064 |
A retirant is eligible to vote in an election if the retirant | 3065 |
is a police retirant or firefighter retirant on the first Monday | 3066 |
in April preceding the date of the expiration of the term of the | 3067 |
retirant member of the board whose successor is to be elected. The | 3068 |
board shall determine whether a police retirant or firefighter | 3069 |
retirant is eligible to vote at an election and its decision shall | 3070 |
be final. | 3071 |
On or before the first Monday in May preceding the date of | 3072 |
the expiration of the term of a retirant member of the board whose | 3073 |
successor is to be elected, the board shall cause ballots to be | 3074 |
sent to each person who is eligible to vote in the election to the | 3075 |
address of the person as shown on the records of the board. | 3076 |
Ballots shall be returned to the board not later than the | 3077 |
third Tuesday in May following the date that the ballots were | 3078 |
mailed to the persons eligible to vote in the election. | 3079 |
| 3080 |
3081 | |
with rules adopted under section 742.045 of the Revised Code, the | 3082 |
person receiving the highest number of votes shall be elected as | 3083 |
the police retirant member or the firefighter retirant member of | 3084 |
the board for a term of four years beginning on the first Monday | 3085 |
in June following the election. | 3086 |
Sec. 742.042. (A) As used in this section: | 3087 |
(1) "Campaign committee" means a candidate or a combination | 3088 |
of two or more persons authorized by a candidate to receive | 3089 |
contributions and in-kind contributions and make expenditures on | 3090 |
behalf of the candidate. | 3091 |
(2) "Candidate" means an individual who has been nominated | 3092 |
pursuant to section 742.04 of the Revised Code for election to the | 3093 |
board of trustees of the Ohio police and fire pension fund or who | 3094 |
is seeking to be elected to fill a vacancy on the board pursuant | 3095 |
to section 742.05 of the Revised Code. | 3096 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 3097 |
of indebtedness, donation, advance, payment, transfer of funds or | 3098 |
transfer of anything of value including a transfer of funds from | 3099 |
an inter vivos or testamentary trust or decedent's estate, and the | 3100 |
payment by any person other than the person to whom the services | 3101 |
are rendered for the personal services of another person, which | 3102 |
contribution is made, received, or used for the purpose of | 3103 |
influencing the results of an election to the board of trustees of | 3104 |
the Ohio police and fire pension fund under section 742.04 of the | 3105 |
Revised Code or the results of an election to fill a vacancy on | 3106 |
the board pursuant to section 742.05 of the Revised Code. | 3107 |
"Contribution" does not include: | 3108 |
(a) Services provided without compensation by individuals | 3109 |
volunteering a portion or all of their time on behalf of a person; | 3110 |
(b) Ordinary home hospitality; | 3111 |
(c) The personal expenses of a volunteer paid for by that | 3112 |
volunteer campaign worker. | 3113 |
(4) "Election day" means the following, as appropriate to the | 3114 |
situation: | 3115 |
(a) The third Tuesday in May of a year for which section | 3116 |
742.04 of the Revised Code specifies that an election for a member | 3117 |
of the board of trustees of the Ohio police and fire pension fund | 3118 |
be held; | 3119 |
(b) If, pursuant to section 742.041 of the Revised Code, no | 3120 |
election is held, the third Tuesday in May of a year that the | 3121 |
election would have been held if not for section 742.041 of the | 3122 |
Revised Code. | 3123 |
(5) "Expenditure" means the disbursement or use of a | 3124 |
contribution for the purpose of influencing the results of an | 3125 |
election to the board of trustees of the Ohio police and fire | 3126 |
pension fund under section 742.04 of the Revised Code or the | 3127 |
results of an election to fill a vacancy on the board pursuant to | 3128 |
section 742.05 of the Revised Code. | 3129 |
(6) "Independent expenditure" means an expenditure by an | 3130 |
individual, partnership, or other entity advocating the election | 3131 |
or defeat of an identified candidate or candidates, that is not | 3132 |
made with the consent of, in coordination, cooperation, or | 3133 |
consultation with, or at the request or suggestion of any | 3134 |
candidate or candidates or of the campaign committee or agent of | 3135 |
the candidate or candidates. An independent expenditure shall not | 3136 |
be construed as being a contribution. As used in division (A)(6) | 3137 |
of this section: | 3138 |
(a) "Advocating" means any communication containing a message | 3139 |
advocating election or defeat. | 3140 |
(b) "Identified candidate" means that the name of the | 3141 |
candidate appears, a photograph or drawing of the candidate | 3142 |
appears, or the identity of the candidate is otherwise apparent by | 3143 |
unambiguous reference. | 3144 |
(c) "Made in coordination, cooperation, or consultation with, | 3145 |
or at the request or suggestion of, any candidate or the campaign | 3146 |
committee or agent of the candidate" means made pursuant to any | 3147 |
arrangement, coordination, or direction by the candidate, the | 3148 |
candidate's campaign committee, or the candidate's agent prior to | 3149 |
the publication, distribution, display, or broadcast of the | 3150 |
communication. An expenditure is presumed to be so made when it is | 3151 |
any of the following: | 3152 |
(i) Based on information about the candidate's plans, | 3153 |
projects, or needs provided to the person making the expenditure | 3154 |
by the candidate, or by the candidate's campaign committee or | 3155 |
agent, with a view toward having an expenditure made; | 3156 |
(ii) Made by or through any person who is, or has been, | 3157 |
authorized to raise or expend funds, who is, or has been, an | 3158 |
officer of the candidate's campaign committee, or who is, or has | 3159 |
been, receiving any form of compensation or reimbursement from the | 3160 |
candidate or the candidate's campaign committee or agent; | 3161 |
(iii) Made by a political party in support of a candidate, | 3162 |
unless the expenditure is made by a political party to conduct | 3163 |
voter registration or voter education efforts. | 3164 |
(d) "Agent" means any person who has actual oral or written | 3165 |
authority, either express or implied, to make or to authorize the | 3166 |
making of expenditures on behalf of a candidate, or means any | 3167 |
person who has been placed in a position with the candidate's | 3168 |
campaign committee or organization such that it would reasonably | 3169 |
appear that in the ordinary course of campaign-related activities | 3170 |
the person may authorize expenditures. | 3171 |
(7) "In-kind contribution" means anything of value other than | 3172 |
money that is used to influence the results of an election to the | 3173 |
board of trustees of the Ohio police and fire pension fund under | 3174 |
section 742.04 of the Revised Code or the results of an election | 3175 |
to fill a vacancy on the board pursuant to section 742.05 of the | 3176 |
Revised Code or is transferred to or used in support of or in | 3177 |
opposition to a candidate and that is made with the consent of, in | 3178 |
coordination, cooperation, or consultation with, or at the request | 3179 |
or suggestion of the benefited candidate. The financing of the | 3180 |
dissemination, distribution, or republication, in whole or part, | 3181 |
of any broadcast or of any written, graphic, or other form of | 3182 |
campaign materials prepared by the candidate, the candidate's | 3183 |
campaign committee, or their authorized agents is an in-kind | 3184 |
contribution to the candidate and an expenditure by the candidate. | 3185 |
(8) "Personal expenses" includes ordinary expenses for | 3186 |
accommodations, clothing, food, personal motor vehicle or | 3187 |
airplane, and home telephone. | 3188 |
(B) Except as otherwise provided in division (D) of this | 3189 |
section, each candidate who, or whose campaign committee, receives | 3190 |
contributions or in-kind contributions totaling one thousand | 3191 |
dollars or more or has expenditures totaling one thousand dollars | 3192 |
or more in connection with the candidate's efforts to be elected | 3193 |
to the board of trustees of the Ohio police and fire pension fund | 3194 |
shall file with the secretary of state two complete, accurate, and | 3195 |
itemized statements setting forth in detail the contributions, | 3196 |
in-kind contributions, and expenditures. The statements shall be | 3197 |
filed regardless of whether, pursuant to section 742.041 of the | 3198 |
Revised Code, no election is held. The statements shall be made on | 3199 |
a form prescribed under section 111.30 of the Revised Code. Every | 3200 |
expenditure shall be vouched for by a receipted bill, stating the | 3201 |
purpose of the expenditures, that shall be filed with the | 3202 |
statement; a canceled check with a notation of the purpose of the | 3203 |
expenditure is a receipted bill for purposes of this division. | 3204 |
The first statement shall be filed not later than four p.m. | 3205 |
on the day that is twelve days before election day. The second | 3206 |
statement shall be filed not sooner than the day that is eight | 3207 |
days after election day and not later than thirty-eight days after | 3208 |
election day. The first statement shall reflect contributions and | 3209 |
in-kind contributions received and expenditures made to the close | 3210 |
of business on the twentieth day before election day. The second | 3211 |
statement shall reflect contributions and in-kind contributions | 3212 |
received and expenditures made during the period beginning on the | 3213 |
nineteenth day before election day and ending on the close of | 3214 |
business on the seventh day after election day. | 3215 |
(C) Each individual, partnership, or other entity who makes | 3216 |
an independent expenditure in connection with the candidate's | 3217 |
efforts to be elected to the board of trustees of the police and | 3218 |
fire pension fund shall file with the secretary of state two | 3219 |
complete, accurate, and itemized statements setting forth in | 3220 |
detail the independent expenditures. The statements shall be filed | 3221 |
regardless of whether, pursuant to section 742.041 of the Revised | 3222 |
Code, no election is held. The statements shall be made on a form | 3223 |
prescribed under section 111.30 of the Revised Code. | 3224 |
The first statement shall be filed not later than four p.m. | 3225 |
on the day that is twelve days before election day. The second | 3226 |
statement shall be filed not sooner than the day that is eight | 3227 |
days after election day and not later than thirty-eight days after | 3228 |
election day. The first statement shall reflect independent | 3229 |
expenditures made to the close of business on the twentieth day | 3230 |
before election day. The second statement shall reflect | 3231 |
independent expenditures made during the period beginning on the | 3232 |
nineteenth day before election day and ending on the close of | 3233 |
business on the seventh day after election day. | 3234 |
(D) Each candidate who, or whose campaign committee, receives | 3235 |
a contribution or in-kind contribution or makes an expenditure in | 3236 |
connection with the candidate's efforts to be elected to fill a | 3237 |
vacancy in the board of trustees of the police and fire pension | 3238 |
fund pursuant to section 742.05 of the Revised Code shall file | 3239 |
with the secretary of state a complete, accurate, and itemized | 3240 |
statement setting forth in detail the contributions, in-kind | 3241 |
contributions, and expenditures. The statement shall be made on a | 3242 |
form prescribed under section 111.30 of the Revised Code. Every | 3243 |
expenditure shall be vouched for by a receipted bill, stating the | 3244 |
purpose of the expenditures, that shall be filed with the | 3245 |
statement; a canceled check with a notation of the purpose of the | 3246 |
expenditure is a receipted bill for purposes of this division. | 3247 |
The statement shall be filed within thirty-eight days after | 3248 |
the day the candidate takes office. The statement shall reflect | 3249 |
contributions and in-kind contributions received and expenditures | 3250 |
made to the close of business on the seventh day after the day the | 3251 |
candidate takes office. | 3252 |
Sec. 742.043. (A) No person shall knowingly fail to file a | 3253 |
complete and accurate campaign finance statement or independent | 3254 |
expenditure statement in accordance with section 742.042 of the | 3255 |
Revised Code. | 3256 |
(B) No person, during the course of a person seeking | 3257 |
nomination for, and during any campaign for, election to the board | 3258 |
of trustees of the police and fire pension fund, shall knowingly | 3259 |
and with intent to affect the nomination or the outcome of the | 3260 |
campaign do any of the following by means of campaign materials, | 3261 |
an advertisement on radio or television or in a newspaper or | 3262 |
periodical, a public speech, press release, or otherwise: | 3263 |
(1) With regard to a candidate, identify the candidate in a | 3264 |
manner that implies that the candidate is a member of the board or | 3265 |
use the term "re-elect" when the candidate is not currently a | 3266 |
member of the board; | 3267 |
(2) Make a false statement concerning the formal schooling or | 3268 |
training completed or attempted by a candidate; a degree, diploma, | 3269 |
certificate, scholarship, grant, award, prize, or honor received, | 3270 |
earned, or held by a candidate; or the period of time during which | 3271 |
a candidate attended any school, college, community technical | 3272 |
school, or institution; | 3273 |
(3) Make a false statement concerning the professional, | 3274 |
occupational, or vocational licenses held by a candidate, or | 3275 |
concerning any position the candidate held for which the candidate | 3276 |
received a salary or wages; | 3277 |
(4) Make a false statement that a candidate or board member | 3278 |
has been indicted or convicted of a theft offense, extortion, or | 3279 |
other crime involving financial corruption or moral turpitude; | 3280 |
(5) Make a statement that a candidate has been indicted for | 3281 |
any crime or has been the subject of a finding by the Ohio | 3282 |
elections commission without disclosing the outcome of any legal | 3283 |
proceedings resulting from the indictment or finding; | 3284 |
(6) Make a false statement that a candidate or board member | 3285 |
has a record of treatment or confinement for mental disorder; | 3286 |
(7) Make a false statement that a candidate or board member | 3287 |
has been subjected to military discipline for criminal misconduct | 3288 |
or dishonorably discharged from the armed services; | 3289 |
(8) Falsely identify the source of a statement, issue | 3290 |
statements under the name of another person without authorization, | 3291 |
or falsely state the endorsement of or opposition to a candidate | 3292 |
by a person or publication; | 3293 |
(9) Make a false statement concerning the voting record of a | 3294 |
candidate or board member; | 3295 |
(10) Post, publish, circulate, distribute, or otherwise | 3296 |
disseminate a false statement concerning a candidate, either | 3297 |
knowing the same to be false or with reckless disregard of whether | 3298 |
it was false or not, if the statement is designed to promote the | 3299 |
election, nomination, or defeat of the candidate. | 3300 |
Sec. 742.044. The secretary of state, or any person acting | 3301 |
on personal knowledge and subject to the penalties of perjury, may | 3302 |
file a complaint with the Ohio elections commission alleging a | 3303 |
violation of section 742.043 of the Revised Code. The complaint | 3304 |
shall be made on a form prescribed and provided by the commission. | 3305 |
On receipt of a complaint under this section, the commission | 3306 |
shall hold a hearing open to the public to determine whether the | 3307 |
violation alleged in the complaint has occurred. The commission | 3308 |
may administer oaths and issue subpoenas to any person in the | 3309 |
state compelling the attendance of witnesses and the production of | 3310 |
relevant papers, books, accounts, and reports. On the refusal of | 3311 |
any person to obey a subpoena or to be sworn or to answer as a | 3312 |
witness, the commission may apply to the court of common pleas of | 3313 |
Franklin county under section 2705.03 of the Revised Code. The | 3314 |
court shall hold contempt proceedings in accordance with Chapter | 3315 |
2705. of the Revised Code. | 3316 |
The commission shall provide the person accused of the | 3317 |
violation at least seven days prior notice of the time, date, and | 3318 |
place of the hearing. The accused may be represented by an | 3319 |
attorney and shall have an opportunity to present evidence, call | 3320 |
witnesses, and cross-examine witnesses. | 3321 |
At the hearing, the commission shall determine whether the | 3322 |
violation alleged in the complaint has occurred. If the commission | 3323 |
determines that a violation of division (A) of section 742.043 of | 3324 |
the Revised Code has occurred, the commission shall either impose | 3325 |
a fine under section 742.99 of the Revised Code or enter a finding | 3326 |
that good cause has been shown not to impose the fine. If the | 3327 |
commission determines that a violation of division (B) of section | 3328 |
742.043 of the Revised Code has occurred, the commission shall | 3329 |
impose the fine described in section 742.99 of the Revised Code, | 3330 |
refer the matter to the appropriate prosecutor, or enter a finding | 3331 |
that good cause has been shown not to impose a fine or refer the | 3332 |
matter to a prosecutor. | 3333 |
Sec. 742.045. (A) The board of trustees of the Ohio police | 3334 |
and fire pension fund, after consultation with the secretary of | 3335 |
state, shall adopt rules in accordance with Chapter 119. of the | 3336 |
Revised Code, governing all of the following: | 3337 |
(1) The administration of elections of members of the board | 3338 |
of trustees under section 742.04 of the Revised Code and elections | 3339 |
held under section 742.05 of the Revised Code to fill vacancies on | 3340 |
the board of trustees; | 3341 |
(2) Nominating petitions for the elections; | 3342 |
(3) Certification of the validity of nominating petitions for | 3343 |
the elections; | 3344 |
(4) Certification of the results of the elections. | 3345 |
(B) The board may contract with the secretary of state or an | 3346 |
independent firm to administer the elections, certify the validity | 3347 |
of nominating petitions, and certify the results of the elections. | 3348 |
The secretary of state and the independent firm shall perform | 3349 |
these services in accordance with the rules adopted under division | 3350 |
(A) of this section. Notwithstanding section 742.41 of the Revised | 3351 |
Code, the board shall provide information necessary for the | 3352 |
secretary of state or the independent firm to certify the | 3353 |
election. If the board contracts with an independent firm to | 3354 |
administer an election, the secretary of state may audit the | 3355 |
election. | 3356 |
Sec. 742.046. (A) The office of an employee member, | 3357 |
firefighter retirant member, or police retirant member of the | 3358 |
board of trustees of the police and fire pension fund who is | 3359 |
convicted of or pleads guilty to a felony, a theft offense as | 3360 |
defined in section 2913.01 of the Revised Code, or a violation of | 3361 |
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, | 3362 |
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code | 3363 |
shall be deemed vacant. A person who has pleaded guilty to or been | 3364 |
convicted of an offense of that nature is ineligible for election | 3365 |
to the office of employee member, firefighter retirant member, or | 3366 |
police retirant member of the board of trustees of the police and | 3367 |
fire pension fund. | 3368 |
(B) A member of the board of trustees of the police and fire | 3369 |
pension fund who willfully and flagrantly exercises authority or | 3370 |
power not authorized by law, refuses or willfully neglects to | 3371 |
enforce the law or to perform any official duty imposed by law, or | 3372 |
is guilty of gross neglect of duty, gross immorality, drunkenness, | 3373 |
misfeasance, malfeasance, or nonfeasance is guilty of misconduct | 3374 |
in office. On complaint and hearing in the manner provided for in | 3375 |
this section, the board member shall have judgment of forfeiture | 3376 |
of the office with all its emoluments entered against the board | 3377 |
member, creating in the office a vacancy to be filled as provided | 3378 |
by law. | 3379 |
(C) Proceedings for removal of a board member on any of the | 3380 |
grounds enumerated in division (B) of this section shall be | 3381 |
commenced by filing with the court of appeals of the district in | 3382 |
which the board member resides a written complaint specifically | 3383 |
setting forth the charge. The complaint shall be accepted if | 3384 |
signed by the governor or signed as follows: | 3385 |
(1) If the complaint is against a police officer employee | 3386 |
member of the board, the complaint must be signed by a number of | 3387 |
police officer members of the fund that equals at least the | 3388 |
following and must include signatures of at least twenty police | 3389 |
officer members residing in at least five different counties: | 3390 |
(a) If the police officer employee member was most recently | 3391 |
elected in accordance with section 742.04 of the Revised Code, ten | 3392 |
per cent of the number of police officers who voted in that | 3393 |
election; | 3394 |
(b) If the police officer employee member most recently | 3395 |
became a member of the board of trustees pursuant to section | 3396 |
742.05 of the Revised Code or took office in accordance with | 3397 |
section 742.041 of the Revised Code, ten per cent of the number of | 3398 |
police officers who voted in the most recent election held in | 3399 |
accordance with section 742.04 of the Revised Code for that police | 3400 |
officer employee member position on the board of trustees. | 3401 |
(2) If the complaint is against a firefighter employee member | 3402 |
of the board of trustees, the complaint must be signed by a number | 3403 |
of firefighter members of the fund that equals at least the | 3404 |
following and must include signatures of at least twenty | 3405 |
firefighter members residing in at least five different counties: | 3406 |
(a) If the firefighter employee member was most recently | 3407 |
elected in accordance with section 742.04 of the Revised Code, ten | 3408 |
per cent of the number of firefighters who voted in that election; | 3409 |
(b) If the firefighter employee member most recently became a | 3410 |
member of the board of trustees pursuant to section 742.05 of the | 3411 |
Revised Code or took office in accordance with section 742.041 of | 3412 |
the Revised Code, ten per cent of the number of firefighters who | 3413 |
voted in the most recent election held in accordance with section | 3414 |
742.04 of the Revised Code for that firefighter employee member | 3415 |
position on the board. | 3416 |
(3) If the complaint is against the police retirant member of | 3417 |
the board of trustees, the complaint must be signed by a number of | 3418 |
police retirants that equals at least the following and must | 3419 |
include signatures of at least twenty police retirants residing in | 3420 |
at least five different counties: | 3421 |
(a) If the police retirant member was most recently elected | 3422 |
in accordance with section 742.04 of the Revised Code, ten per | 3423 |
cent of the number of police retirants who voted in that election; | 3424 |
(b) If the police retirant member most recently became a | 3425 |
member of the board of trustees under section 742.05 of the | 3426 |
Revised Code or took office in accordance with section 742.041 of | 3427 |
the Revised Code, ten per cent of the number of police retirants | 3428 |
who voted in the most recent election held in accordance with | 3429 |
section 742.04 of the Revised Code for the police retirant member | 3430 |
position on the board. | 3431 |
(4) If the complaint is against the firefighter retirant | 3432 |
member of the board of trustees, the complaint must be signed by a | 3433 |
number of firefighter retirants that equals at least the following | 3434 |
and must include signatures of at least twenty firefighter | 3435 |
retirants residing in at least five different counties: | 3436 |
(a) If the firefighter retirant member was most recently | 3437 |
elected in accordance with section 742.04 of the Revised Code, ten | 3438 |
per cent of the number of firefighter retirants who voted in that | 3439 |
election; | 3440 |
(b) If the firefighter retirant member most recently became a | 3441 |
member of the board of trustees under section 742.05 of the | 3442 |
Revised Code or took office in accordance with section 742.041 of | 3443 |
the Revised Code, ten per cent of the number of firefighter | 3444 |
retirants who voted in the most recent election held in accordance | 3445 |
with section 742.04 of the Revised Code for the firefighter | 3446 |
retirant member position on the board. | 3447 |
(D) The clerk of the court of appeals in which a complaint | 3448 |
against a member of the board of trustees is filed under division | 3449 |
(A) of this section shall do both of the following with respect to | 3450 |
the complaint: | 3451 |
(1) Submit the signatures obtained pursuant to division (C) | 3452 |
of this section to the board for purposes of verifying the | 3453 |
validity of the signatures. The board shall verify the validity of | 3454 |
the signatures and report its findings to the court. | 3455 |
(2) Cause a copy of the complaint to be served on the board | 3456 |
member at least ten days before the hearing on the complaint. The | 3457 |
court shall hold a public hearing not later than thirty days after | 3458 |
the filing of the complaint. The court may subpoena witnesses and | 3459 |
compel their attendance in the same manner as in civil cases. | 3460 |
Process shall be served by the sheriff of the county in which the | 3461 |
witness resides. Witness fees and other fees in connection with | 3462 |
the proceedings shall be the same as in civil cases. The court may | 3463 |
suspend the board member pending the hearing. | 3464 |
If the court finds that one or more of the charges in the | 3465 |
complaint are true, it shall make a finding for removal of the | 3466 |
board member. The court's finding shall include a full detailed | 3467 |
statement of the reasons for the removal. The finding shall be | 3468 |
filed with the clerk of the court and be made a matter of public | 3469 |
record. | 3470 |
The board member has the right of review or appeal to the | 3471 |
supreme court on leave first obtained. The supreme court shall | 3472 |
hear the case in not more than thirty court days after granting | 3473 |
leave. In other respects, the hearing shall follow the regular | 3474 |
procedure in appealable cases that originate in the court of | 3475 |
appeals. | 3476 |
(E) No individual who has been removed from the board | 3477 |
pursuant to this section shall be eligible to fill an elective or | 3478 |
appointed position as a member of the board. | 3479 |
Sec. 742.05. Any vacancy occurring in the term of a member | 3480 |
of the board of trustees of the Ohio police and fire pension fund | 3481 |
who is the fiscal officer of a municipal corporation shall be | 3482 |
filled by appointment by the governor for the unexpired term of | 3483 |
such member. | 3484 |
| 3485 |
or retirant member of
the board | 3486 |
remaining | 3487 |
3488 | |
retirant member. On certification of the election results in | 3489 |
accordance with rules adopted under section 742.045 of the Revised | 3490 |
Code, the successor member shall hold office until the next board | 3491 |
election that occurs not less than ninety days after the successor | 3492 |
member's election. | 3493 |
| 3494 |
3495 | |
3496 |
Elections under this section to fill a vacancy on the board | 3497 |
shall be conducted in accordance with rules adopted under section | 3498 |
742.045 of the Revised Code. | 3499 |
If a member of the board who is the fiscal officer of a | 3500 |
municipal corporation ceases to be a fiscal officer of a municipal | 3501 |
corporation, a vacancy shall exist. | 3502 |
If an employee member of the board ceases to be a member of | 3503 |
the fund, a vacancy shall exist. | 3504 |
If as a result of changed circumstances a retirant member no | 3505 |
longer qualifies for membership on the board as a retirant member, | 3506 |
a vacancy shall exist. | 3507 |
Any | 3508 |
board | 3509 |
3510 | |
meetings of the board, without valid excuse, shall be considered | 3511 |
as having resigned from the board and the board shall declare the | 3512 |
member's office vacated and as of the date of the adoption of a | 3513 |
proper resolution a vacancy shall exist. | 3514 |
Sec. 742.10. The board of trustees of the Ohio police and | 3515 |
fire pension fund may sue and be sued, plead and be impleaded, | 3516 |
contract and be contracted with, employ and fix the compensation | 3517 |
of employees, and adopt rules for the proper administration and | 3518 |
management of the fund. | 3519 |
Effective ninety days after the effective date of this | 3520 |
amendment, the board of trustees may not employ a state retirement | 3521 |
system investment officer, as defined in section 1707.01 of the | 3522 |
Revised Code, who does not hold a valid state retirement system | 3523 |
investment officer license issued by the division of securities in | 3524 |
the department of commerce. | 3525 |
If the Ohio retirement study council establishes a uniform | 3526 |
format for any report the board is required to submit to the | 3527 |
council, the board shall submit the report in that format. | 3528 |
The attorney general shall prescribe procedures for the | 3529 |
adoption of rules authorized under this chapter, consistent with | 3530 |
the provisions of section 111.15 of the Revised Code under which | 3531 |
all rules shall be filed in order to be effective. Such procedures | 3532 |
shall establish methods by which notice of proposed rules is given | 3533 |
to interested parties and rules adopted by the board published and | 3534 |
otherwise made available. When it files a rule with the joint | 3535 |
committee on agency rule review pursuant to section 111.15 of the | 3536 |
Revised Code, the board shall submit to the Ohio retirement study | 3537 |
council a copy of the full text of the rule, and if applicable, a | 3538 |
copy of the rule summary and fiscal analysis required by division | 3539 |
(B) of section 127.18 of the Revised Code. | 3540 |
All rules adopted pursuant to this chapter, prior to August | 3541 |
20, 1976, shall be published and made available to interested | 3542 |
parties by January 1, 1977. | 3543 |
Sec. 742.102. The board of trustees of the police and fire | 3544 |
pension fund shall do all of the following: | 3545 |
(A) In consultation with the Ohio ethics commission, review | 3546 |
any existing policy regarding the travel and payment of travel | 3547 |
expenses of members of the board of trustees and employees of the | 3548 |
fund and adopt rules in accordance with section 742.10 of the | 3549 |
Revised Code establishing a new or revised policy regarding travel | 3550 |
and payment of travel expenses. Not less than sixty days before | 3551 |
adopting a new or revised policy, the board shall submit the | 3552 |
policy to the Ohio retirement study council for review. | 3553 |
(B) If the board intends to award a bonus to any employee of | 3554 |
the board, adopt rules in accordance with section 742.10 of the | 3555 |
Revised Code establishing a policy regarding employee bonuses; | 3556 |
(C) Provide copies of the rules adopted under divisions (A) | 3557 |
and (B) of this section to each member of the Ohio retirement | 3558 |
study council; | 3559 |
(D) Submit to the Ohio retirement study council a proposed | 3560 |
operating budget, including an administrative budget for the | 3561 |
board, for the next immediate fiscal year and adopt that budget | 3562 |
not earlier than sixty days after it is submitted to the council; | 3563 |
(E) Submit to the council a plan describing how the board | 3564 |
will improve the dissemination of public information pertaining to | 3565 |
the board. | 3566 |
Sec. 742.103. The board of trustees of the police and fire | 3567 |
pension fund shall, in consultation with the Ohio ethics | 3568 |
commission, develop an ethics policy to govern board members and | 3569 |
employees in the performance of their official duties. The board | 3570 |
shall submit this policy to the commission for approval. | 3571 |
The commission shall review the policy and, if the commission | 3572 |
determines that the policy is adequate, approve the policy. If the | 3573 |
commission determines that the policy is inadequate, it shall | 3574 |
specify the revisions to be made and the board shall submit a | 3575 |
revised policy. If the commission approves the revised policy, the | 3576 |
board shall adopt it. If not, the board shall make any further | 3577 |
revisions required by the commission and adopt the policy. Not | 3578 |
less than sixty days before adopting the policy, the board shall | 3579 |
submit it to the Ohio retirement study council for review. | 3580 |
The board periodically shall provide ethics training to | 3581 |
members and employees of the board. The training shall include | 3582 |
training regarding the requirements and prohibitions of Chapter | 3583 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 3584 |
Revised Code and any other training the board considers | 3585 |
appropriate. | 3586 |
The board shall establish a procedure to ensure that each | 3587 |
employee of the board is informed of the procedure for filing a | 3588 |
complaint alleging violation of Chapter 102. of the Revised Code | 3589 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 3590 |
ethics commission or the appropriate prosecuting attorney. | 3591 |
Sec. 742.104. (A) The board of trustees of the police and | 3592 |
fire pension fund shall designate a person who is a licensed state | 3593 |
retirement system investment officer to be the chief investment | 3594 |
officer for the police and fire pension fund. The board shall | 3595 |
notify the division of securities of the department of commerce in | 3596 |
writing of its designation and of any change in its designation | 3597 |
within ten calendar days of the designation or change. | 3598 |
(B) The chief investment officer shall reasonably supervise | 3599 |
the licensed state retirement system investment officers and other | 3600 |
persons employed by the police and fire pension fund with a view | 3601 |
toward preventing violations of Chapter 1707. of the Revised Code, | 3602 |
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 3603 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 3604 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 3605 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 3606 |
promulgated under those statutes. This duty of reasonable | 3607 |
supervision shall include the adoption, implementation, and | 3608 |
enforcement of written policies and procedures reasonably designed | 3609 |
to prevent persons employed by the police and fire pension fund | 3610 |
from misusing material, nonpublic information in violation of | 3611 |
those laws, rules, and regulations. | 3612 |
For purposes of this division, no chief investment officer | 3613 |
shall be considered to have failed to satisfy the officer's duty | 3614 |
of reasonable supervision if the officer has done all of the | 3615 |
following: | 3616 |
(1) Adopted and implemented written procedures, and a system | 3617 |
for applying the procedures, that would reasonably be expected to | 3618 |
prevent and detect, insofar as practicable, any violation by its | 3619 |
licensed investment officers and other persons employed by the | 3620 |
police and fire pension fund; | 3621 |
(2) Reasonably discharged the duties and obligations | 3622 |
incumbent on the chief investment officer by reason of the | 3623 |
established procedures and the system for applying the procedures | 3624 |
when the officer had no reasonable cause to believe that there was | 3625 |
a failure to comply with the procedures and systems; | 3626 |
(3) Reviewed, at least annually, the adequacy of the policies | 3627 |
and procedures established pursuant to this section and the | 3628 |
effectiveness of their implementation. | 3629 |
(C) The chief investment officer shall establish and maintain | 3630 |
a policy to monitor and evaluate the effectiveness of securities | 3631 |
transactions executed on behalf of the board. No chief investment | 3632 |
officer shall be considered to have failed to satisfy the | 3633 |
officer's duty under this division if the officer has done both of | 3634 |
the following: | 3635 |
(1) Implemented the policy adopted by the board under section | 3636 |
742.114 of the Revised Code that outlines the criteria used to | 3637 |
select agents that execute securities transactions on behalf of | 3638 |
the police and fire pension fund. | 3639 |
(2) Reviewed, at least annually, the performance of | 3640 |
broker-dealers that execute securities transactions on behalf of | 3641 |
the police and fire pension fund. | 3642 |
Sec. 742.105. The Ohio police and fire pension board of | 3643 |
trustees shall appoint a committee to oversee the selection of an | 3644 |
internal auditor. The committee shall select one or more persons | 3645 |
for employment as an internal auditor. The board shall employ the | 3646 |
person or persons selected by the committee. | 3647 |
The committee shall consist of the following board members: | 3648 |
one retirant member, one employee member, and one other member. | 3649 |
The committee shall annually prepare and submit to the Ohio | 3650 |
retirement study council a report of its actions during the | 3651 |
preceding year. | 3652 |
Sec. 742.11. (A) The members of the board of trustees of the | 3653 |
Ohio police and fire pension fund shall be the trustees of the | 3654 |
funds created by section 742.59 of the Revised Code. The board | 3655 |
shall have full power to invest the funds. The board and other | 3656 |
fiduciaries shall discharge their duties with respect to the funds | 3657 |
solely in the interest of the participants and beneficiaries; for | 3658 |
the exclusive purpose of providing benefits to participants and | 3659 |
their beneficiaries and defraying reasonable expenses of | 3660 |
administering the Ohio police and fire pension fund; with care, | 3661 |
skill, prudence, and diligence under the circumstances then | 3662 |
prevailing that a prudent person acting in a like capacity and | 3663 |
familiar with these matters would use in the conduct of an | 3664 |
enterprise of a like character and with like aims; and by | 3665 |
diversifying the investments of the disability and pension fund so | 3666 |
as to minimize the risk of large losses, unless under the | 3667 |
circumstances it is clearly prudent not to do so. | 3668 |
To facilitate investment of the funds, the board may | 3669 |
establish a partnership, trust, limited liability company, | 3670 |
corporation, including a corporation exempt from taxation under | 3671 |
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C.A. 1, as | 3672 |
amended, or any other legal entity authorized to transact business | 3673 |
in this state. | 3674 |
(B) In exercising its fiduciary responsibility with respect | 3675 |
to the investment of the funds, it shall be the intent of the | 3676 |
board to give consideration to investments that enhance the | 3677 |
general welfare of the state and its citizens where the | 3678 |
investments offer quality, return, and safety comparable to other | 3679 |
investments currently available to the board. In fulfilling this | 3680 |
intent, equal consideration shall be given to investments | 3681 |
otherwise qualifying under this section that involve minority | 3682 |
owned and controlled firms and firms owned and controlled by | 3683 |
women, either alone or in joint venture with other firms. | 3684 |
The board shall adopt, in regular meeting, policies, | 3685 |
objectives, or criteria for the operation of the investment | 3686 |
program that include asset allocation targets and ranges, risk | 3687 |
factors, asset class benchmarks, time horizons, total return | 3688 |
objectives, and performance evaluation guidelines. In adopting | 3689 |
policies and criteria for the selection of agents with whom the | 3690 |
board may contract for the administration of the funds, the board | 3691 |
shall comply with sections 742.114 and 742.116 of the Revised Code | 3692 |
and shall also give equal consideration to minority owned and | 3693 |
controlled firms, firms owned and controlled by women, and joint | 3694 |
ventures involving minority owned and controlled firms and firms | 3695 |
owned and controlled by women that otherwise meet the policies and | 3696 |
criteria established by the board. Amendments and additions to the | 3697 |
policies and criteria shall be adopted in regular meeting. The | 3698 |
board shall publish its policies, objectives, and criteria under | 3699 |
this provision no less often than annually and shall make copies | 3700 |
available to interested parties. | 3701 |
When reporting on the performance of investments, the board | 3702 |
shall comply with the performance presentation standards | 3703 |
established by the association for investment management and | 3704 |
research. | 3705 |
(C) All bonds, notes, certificates, stocks, or other | 3706 |
evidences of investments purchased by the board shall be delivered | 3707 |
to the treasurer of state, who is hereby designated as custodian | 3708 |
thereof, or to the treasurer of state's authorized agent, and the | 3709 |
treasurer of state or the agent shall collect the principal, | 3710 |
interest, dividends, and distributions that become due and payable | 3711 |
and place them when so collected into the custodial funds. | 3712 |
Evidences of title of the investments may be deposited by the | 3713 |
treasurer of state for safekeeping with an authorized agent, | 3714 |
selected by the treasurer of state, who is a qualified trustee | 3715 |
under section 135.18 of the Revised Code. The treasurer of state | 3716 |
shall pay for the investments purchased by the board on receipt of | 3717 |
written or electronic instructions from the board or the board's | 3718 |
designated agent authorizing the purchase and pending receipt of | 3719 |
the evidence of title of the investment by the treasurer of state | 3720 |
or the treasurer of state's authorized agent. The board may sell | 3721 |
investments held by the board, and the treasurer of state or the | 3722 |
treasurer of state's authorized agent shall accept payment from | 3723 |
the purchaser and deliver evidence of title of the investment to | 3724 |
the purchaser on receipt of written or electronic instructions | 3725 |
from the board or the board's designated agent authorizing the | 3726 |
sale, and pending receipt of the moneys for the investments. The | 3727 |
amount received shall be placed into the custodial funds. The | 3728 |
board and the treasurer of state may enter into agreements to | 3729 |
establish procedures for the purchase and sale of investments | 3730 |
under this division and the custody of the investments. | 3731 |
(D) All of the board's business shall be transacted, all its | 3732 |
funds shall be invested, all warrants for money drawn and payments | 3733 |
shall be made, and all of its cash, securities, and other property | 3734 |
shall be held, in the name of the board or its nominee, provided | 3735 |
that nominees are authorized by board resolution for the purpose | 3736 |
of facilitating the ownership and transfer of investments. | 3737 |
(E) No purchase or sale of any investment shall be made under | 3738 |
this section except as authorized by the board of trustees of the | 3739 |
Ohio police and fire pension fund. | 3740 |
(F) Any statement of financial position distributed by the | 3741 |
board shall include the fair value, as of the statement date, of | 3742 |
all investments held by the board under this section. | 3743 |
Sec. 742.114. (A) As used in this section and in section | 3744 |
742.116 of the Revised Code: | 3745 |
(1) "Agent" means a dealer, as defined in section 1707.01 of | 3746 |
the Revised Code, who is licensed under sections 1707.01 to | 3747 |
1707.45 of the Revised Code or under comparable laws of another | 3748 |
state or of the United States. | 3749 |
(2) "Minority business enterprise" has the same meaning as in | 3750 |
section 122.71 of the Revised Code. | 3751 |
(3) "Ohio-qualified agent" means an agent designated as such | 3752 |
by the board of trustees of the fund. | 3753 |
(4) "Ohio-qualified investment manager" means an investment | 3754 |
manager designated as such by the board of trustees of the fund. | 3755 |
(5) "Principal place of business" means an office in which | 3756 |
the agent regularly provides securities or investment advisory | 3757 |
services and solicits, meets with, or otherwise communicates with | 3758 |
clients. | 3759 |
(B) The board of trustees of the fund shall, for the purposes | 3760 |
of this section, designate an agent as an Ohio-qualified agent if | 3761 |
the agent meets all of the following requirements: | 3762 |
(1) The agent is subject to taxation under Chapter 5725., | 3763 |
5733., or 5747. of the Revised Code; | 3764 |
(2) The agent is authorized to conduct business in this | 3765 |
state; | 3766 |
(3) The agent maintains a principal place of business in this | 3767 |
state and employs at least five residents of this state. | 3768 |
(C) The board shall adopt and implement a written policy to | 3769 |
establish criteria and procedures used to select agents to execute | 3770 |
securities transactions on behalf of the retirement system. The | 3771 |
policy shall address each of the following: | 3772 |
(1) Commissions charged by the agent, both in the aggregate | 3773 |
and on a per share basis; | 3774 |
(2) The execution speed and trade settlement capabilities of | 3775 |
the agent; | 3776 |
(3) The responsiveness, reliability, and integrity of the | 3777 |
agent; | 3778 |
(4) The nature and value of research provided by the agent; | 3779 |
(5) Any special capabilities of the agent. | 3780 |
(D)(1) The board shall, at least annually, establish a policy | 3781 |
with the goal to increase utilization by the board of | 3782 |
Ohio-qualified agents for the execution of domestic equity and | 3783 |
fixed-income trades on behalf of the retirement system, when an | 3784 |
Ohio-qualified agent offers quality, services, and safety | 3785 |
comparable to other agents otherwise available to the board and | 3786 |
meets the criteria established under division (C) of this section. | 3787 |
(2) The board shall review, at least annually, the | 3788 |
performance of the agents that execute securities transactions on | 3789 |
behalf of the board. | 3790 |
(3) The board shall determine whether an agent is an | 3791 |
Ohio-qualified agent, meets the criteria established by the board | 3792 |
pursuant to division (C) of this section, and offers quality, | 3793 |
services, and safety comparable to other agents otherwise | 3794 |
available to the board. The board's determination shall be final. | 3795 |
(E) The board shall, at least annually, submit to the Ohio | 3796 |
retirement study council a report containing the following | 3797 |
information: | 3798 |
(1) The name of each agent designated as an Ohio-qualified | 3799 |
agent under this section; | 3800 |
(2) The name of each agent that executes securities | 3801 |
transactions on behalf of the board; | 3802 |
(3) The amount of equity and fixed-income trades that are | 3803 |
executed by Ohio-qualified agents, expressed as a percentage of | 3804 |
all equity and fixed-income trades that are executed by agents on | 3805 |
behalf of the board; | 3806 |
(4) The compensation paid to Ohio-qualified agents, expressed | 3807 |
as a percentage of total compensation paid to all agents that | 3808 |
execute securities transactions on behalf of the board; | 3809 |
(5) The amount of equity and fixed-income trades that are | 3810 |
executed by agents that are minority business enterprises, | 3811 |
expressed as a percentage of all equity and fixed-income trades | 3812 |
that are executed by agents on behalf of the board; | 3813 |
(6) Any other information requested by the Ohio retirement | 3814 |
study council regarding the board's use of agents. | 3815 |
Sec. 742.115. (A) The Ohio police and fire pension fund shall | 3816 |
disclose the following to the Ohio ethics commission: | 3817 |
(1) Anything of value received by the system from an agent | 3818 |
and anything of value given on behalf of the system by an agent; | 3819 |
(2) The name of any employee of the system with authority | 3820 |
over the investment of retirement system funds or any board member | 3821 |
of the system who deals with an agent regarding amounts described | 3822 |
in division (A)(1) of this section. | 3823 |
(B) The disclosures required by this section shall be made | 3824 |
annually in a report submitted by a date prescribed by the Ohio | 3825 |
ethics commission. | 3826 |
Sec. 742.116. (A) The board of trustees of the pension fund | 3827 |
shall, for the purposes of this section, designate an investment | 3828 |
manager as an Ohio-qualified investment manager if the investment | 3829 |
manager meets all of the following requirements: | 3830 |
(1) The investment manager is subject to taxation under | 3831 |
Chapter 5725., 5733., or 5747. of the Revised Code; | 3832 |
(2) The investment manager meets one of the following | 3833 |
requirements: | 3834 |
(a) Has its corporate headquarters or principal place of | 3835 |
business in this state; | 3836 |
(b) Employs at least five hundred individuals in this state; | 3837 |
(c) Has a principal place of business in this state and | 3838 |
employs at least 20 residents of this state. | 3839 |
(B)(1) The board shall, at least annually, establish a policy | 3840 |
with the goal to increase utilization by the board of | 3841 |
Ohio-qualified investment managers, when an Ohio-qualified | 3842 |
investment manager offers quality, services, and safety comparable | 3843 |
to other investment managers otherwise available to the board. The | 3844 |
policy shall also provide for the following: | 3845 |
(a) A process whereby the board can develop a list of | 3846 |
Ohio-qualified investment managers and their investment products; | 3847 |
(b) A process whereby the board can give public notice to | 3848 |
Ohio-qualified investment managers of the board's search for an | 3849 |
investment manager that includes the board's search criteria. | 3850 |
(2) The board shall determine whether an investment manager | 3851 |
is an Ohio-qualified investment manager and whether the investment | 3852 |
manager offers quality, services, and safety comparable to other | 3853 |
investment managers otherwise available to the board. The board's | 3854 |
determination shall be final. | 3855 |
(C) The board shall, at least annually, submit to the Ohio | 3856 |
retirement study council a report containing the following | 3857 |
information: | 3858 |
(1) The name of each investment manager designated as an | 3859 |
Ohio-qualified investment manager under this section; | 3860 |
(2) The name of each investment manager with which the board | 3861 |
contracts; | 3862 |
(3) The amount of assets managed by Ohio-qualified investment | 3863 |
managers, expressed as a percentage of the total assets held by | 3864 |
the retirement system and as a percentage of assets managed by | 3865 |
investment managers with which the board has contracted; | 3866 |
(4) The compensation paid to Ohio-qualified investment | 3867 |
managers, expressed as a percentage of total compensation paid to | 3868 |
all investment managers with which the board has contracted; | 3869 |
(5) Any other information requested by the Ohio retirement | 3870 |
study council regarding the board's use of investment managers. | 3871 |
Sec. 742.41. (A) As used in this section: | 3872 |
(1) "Other system retirant" has the same meaning as in | 3873 |
section 742.26 of the Revised Code. | 3874 |
(2) "Personal history record" includes a member's, former | 3875 |
member's, or other system retirant's name, address, telephone | 3876 |
number, social security number, record of contributions, | 3877 |
correspondence with the Ohio police and fire pension fund, status | 3878 |
of any application for benefits, and any other information deemed | 3879 |
confidential by the trustees of the fund. | 3880 |
(B) The treasurer of state shall furnish annually to the | 3881 |
board of trustees of the fund a sworn statement of the amount of | 3882 |
the funds in the treasurer of state's custody belonging to the | 3883 |
Ohio police and fire pension fund. The records of the fund shall | 3884 |
be open for public inspection except for the following, which | 3885 |
shall be excluded, except with the written authorization of the | 3886 |
individual concerned: | 3887 |
(1) The individual's personal history record; | 3888 |
(2) Any information identifying, by name and address, the | 3889 |
amount of a monthly allowance or benefit paid to the individual. | 3890 |
(C) All medical reports and recommendations required are | 3891 |
privileged, except that copies of such medical reports or | 3892 |
recommendations shall be made available to the personal physician, | 3893 |
attorney, or authorized agent of the individual concerned upon | 3894 |
written release received from the individual or the individual's | 3895 |
agent or, when necessary for the proper administration of the | 3896 |
fund, to the board-assigned physician. | 3897 |
(D) Any person who is a member of the fund or an other system | 3898 |
retirant shall be furnished with a statement of the amount to the | 3899 |
credit of the person's individual account upon the person's | 3900 |
written request. The fund need not answer more than one such | 3901 |
request of a person in any one year. | 3902 |
(E) Notwithstanding the exceptions to public inspection in | 3903 |
division (B) of this section, the fund may furnish the following | 3904 |
information: | 3905 |
(1) If a member, former member, or other system retirant is | 3906 |
subject to an order issued under section 2907.15 of the Revised | 3907 |
Code or is convicted of or pleads guilty to a violation of section | 3908 |
2921.41 of the Revised Code, on written request of a prosecutor as | 3909 |
defined in section 2935.01 of the Revised Code, the fund shall | 3910 |
furnish to the prosecutor the information requested from the | 3911 |
individual's personal history record. | 3912 |
(2) Pursuant to a court order issued pursuant to Chapter | 3913 |
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall | 3914 |
furnish to a court or child support enforcement agency the | 3915 |
information required under that section. | 3916 |
(3) At the request of any organization or association of | 3917 |
members of the fund, the fund shall provide a list of the names | 3918 |
and addresses of members of the fund and other system retirants. | 3919 |
The fund shall comply with the request of such organization or | 3920 |
association at least once a year and may impose a reasonable | 3921 |
charge for the list. | 3922 |
(4) Within fourteen days after receiving from the director of | 3923 |
job and family services a list of the names and social security | 3924 |
numbers of recipients of public assistance pursuant to section | 3925 |
5101.181 of the Revised Code, the fund shall inform the auditor of | 3926 |
state of the name, current or most recent employer address, and | 3927 |
social security number of each member or other system retirant | 3928 |
whose name and social security number are the same as that of a | 3929 |
person whose name or social security number was submitted by the | 3930 |
director. The fund and its employees shall, except for purposes of | 3931 |
furnishing the auditor of state with information required by this | 3932 |
section, preserve the confidentiality of recipients of public | 3933 |
assistance in compliance with division (A) of section 5101.181 of | 3934 |
the Revised Code. | 3935 |
(5) The fund shall comply with orders issued under section | 3936 |
3105.87 of the Revised Code. | 3937 |
On the written request of an alternate payee, as defined in | 3938 |
section 3105.80 of the Revised Code, the fund shall furnish to the | 3939 |
alternate payee information on the amount and status of any | 3940 |
amounts payable to the alternate payee under an order issued under | 3941 |
section 3105.171 or 3105.65 of the Revised Code. | 3942 |
(6) At the request of any person, the fund shall make | 3943 |
available to the person copies of all documents, including | 3944 |
resumes, in the fund's possession regarding filling a vacancy of a | 3945 |
police officer employee member, firefighter employee member, | 3946 |
police retirant member, or firefighter retirant member of the | 3947 |
board of trustees. The person who made the request shall pay the | 3948 |
cost of compiling, copying, and mailing the documents. The | 3949 |
information described in this division is a public record. | 3950 |
(F) A statement that contains information obtained from the | 3951 |
fund's records that is signed by the secretary of the board of | 3952 |
trustees of the Ohio police and fire pension fund and to which the | 3953 |
board's official seal is affixed, or copies of the fund's records | 3954 |
to which the signature and seal are attached, shall be received as | 3955 |
true copies of the fund's records in any court or before any | 3956 |
officer of this state. | 3957 |
Sec. 742.99. (A) Whoever violates section 742.043 of the | 3958 |
Revised Code shall be fined not more than one hundred dollars for | 3959 |
each day of the violation. | 3960 |
(B) Whoever violates division (B) of section 742.043 of the | 3961 |
Revised Code shall be imprisoned for not more than six months or | 3962 |
fined not more than five thousand dollars, or both. | 3963 |
(C) Fines imposed by the Ohio elections commission under this | 3964 |
section shall be paid into the Ohio elections commission fund | 3965 |
created under section 3513.10 of the Revised Code. | 3966 |
Sec. 1707.01. As used in this chapter: | 3967 |
(A) Whenever the context requires it, "division" or "division | 3968 |
of securities" may be read as "director of commerce" or as | 3969 |
"commissioner of securities." | 3970 |
(B) "Security" means any certificate or instrument, or any | 3971 |
oral, written, or electronic agreement, understanding, or | 3972 |
opportunity, that represents title to or interest in, or is | 3973 |
secured by any lien or charge upon, the capital, assets, profits, | 3974 |
property, or credit of any person or of any public or governmental | 3975 |
body, subdivision, or agency. It includes shares of stock, | 3976 |
certificates for shares of stock, an uncertificated security, | 3977 |
membership interests in limited liability companies, voting-trust | 3978 |
certificates, warrants and options to purchase securities, | 3979 |
subscription rights, interim receipts, interim certificates, | 3980 |
promissory notes, all forms of commercial paper, evidences of | 3981 |
indebtedness, bonds, debentures, land trust certificates, fee | 3982 |
certificates, leasehold certificates, syndicate certificates, | 3983 |
endowment certificates, interests in or under profit-sharing or | 3984 |
participation agreements, interests in or under oil, gas, or | 3985 |
mining leases, preorganization or reorganization subscriptions, | 3986 |
preorganization certificates, reorganization certificates, | 3987 |
interests in any trust or pretended trust, any investment | 3988 |
contract, any life settlement interest, any instrument evidencing | 3989 |
a promise or an agreement to pay money, warehouse receipts for | 3990 |
intoxicating liquor, and the currency of any government other than | 3991 |
those of the United States and Canada, but sections 1707.01 to | 3992 |
1707.45 of the Revised Code do not apply to the sale of real | 3993 |
estate. | 3994 |
(C)(1) "Sale" has the full meaning of "sale" as applied by or | 3995 |
accepted in courts of law or equity, and includes every | 3996 |
disposition, or attempt to dispose, of a security or of an | 3997 |
interest in a security. "Sale" also includes a contract to sell, | 3998 |
an exchange, an attempt to sell, an option of sale, a solicitation | 3999 |
of a sale, a solicitation of an offer to buy, a subscription, or | 4000 |
an offer to sell, directly or indirectly, by agent, circular, | 4001 |
pamphlet, advertisement, or otherwise. | 4002 |
(2) "Sell" means any act by which a sale is made. | 4003 |
(3) The use of advertisements, circulars, or pamphlets in | 4004 |
connection with the sale of securities in this state exclusively | 4005 |
to the purchasers specified in division (D) of section 1707.03 of | 4006 |
the Revised Code is not a sale when the advertisements, circulars, | 4007 |
and pamphlets describing and offering those securities bear a | 4008 |
readily legible legend in substance as follows: "This offer is | 4009 |
made on behalf of dealers licensed under sections 1707.01 to | 4010 |
1707.45 of the Revised Code, and is confined in this state | 4011 |
exclusively to institutional investors and licensed dealers." | 4012 |
(4) The offering of securities by any person in conjunction | 4013 |
with a licensed dealer by use of advertisement, circular, or | 4014 |
pamphlet is not a sale if that person does not otherwise attempt | 4015 |
to sell securities in this state. | 4016 |
(5) Any security given with, or as a bonus on account of, any | 4017 |
purchase of securities is conclusively presumed to constitute a | 4018 |
part of the subject of that purchase and has been "sold." | 4019 |
(6) "Sale" by an owner, pledgee, or mortgagee, or by a person | 4020 |
acting in a representative capacity, includes sale on behalf of | 4021 |
such party by an agent, including a licensed dealer or | 4022 |
salesperson. | 4023 |
(D) "Person," except as otherwise provided in this chapter, | 4024 |
means a natural person, firm, partnership, limited partnership, | 4025 |
partnership association, syndicate, joint-stock company, | 4026 |
unincorporated association, trust or trustee except where the | 4027 |
trust was created or the trustee designated by law or judicial | 4028 |
authority or by a will, and a corporation or limited liability | 4029 |
company organized under the laws of any state, any foreign | 4030 |
government, or any political subdivision of a state or foreign | 4031 |
government. | 4032 |
(E)(1) "Dealer," except as otherwise provided in this | 4033 |
chapter, means every person, other than a salesperson, who engages | 4034 |
or professes to engage, in this state, for either all or part of | 4035 |
the person's time, directly or indirectly, either in the business | 4036 |
of the sale of securities for the person's own account, or in the | 4037 |
business of the purchase or sale of securities for the account of | 4038 |
others in the reasonable expectation of receiving a commission, | 4039 |
fee, or other remuneration as a result of engaging in the purchase | 4040 |
and sale of securities. "Dealer" does not mean any of the | 4041 |
following: | 4042 |
(a) Any issuer, including any officer, director, employee, or | 4043 |
trustee of, or member or manager of, or partner in, or any general | 4044 |
partner of, any issuer, that sells, offers for sale, or does any | 4045 |
act in furtherance of the sale of a security that represents an | 4046 |
economic interest in that issuer, provided no commission, fee, or | 4047 |
other similar remuneration is paid to or received by the issuer | 4048 |
for the sale; | 4049 |
(b) Any licensed attorney, public accountant, or firm of such | 4050 |
attorneys or accountants, whose activities are incidental to the | 4051 |
practice of the attorney's, accountant's, or firm's profession; | 4052 |
(c) Any person that, for the account of others, engages in | 4053 |
the purchase or sale of securities that are issued and outstanding | 4054 |
before such purchase and sale, if a majority or more of the equity | 4055 |
interest of an issuer is sold in that transaction, and if, in the | 4056 |
case of a corporation, the securities sold in that transaction | 4057 |
represent a majority or more of the voting power of the | 4058 |
corporation in the election of directors; | 4059 |
(d) Any person that brings an issuer together with a | 4060 |
potential investor and whose compensation is not directly or | 4061 |
indirectly based on the sale of any securities by the issuer to | 4062 |
the investor; | 4063 |
(e) Any bank; | 4064 |
(f) Any person that the division of securities by rule | 4065 |
exempts from the definition of "dealer" under division (E)(1) of | 4066 |
this section. | 4067 |
(2) "Licensed dealer" means a dealer licensed under this | 4068 |
chapter. | 4069 |
(F)(1) "Salesman" or "salesperson" means every natural | 4070 |
person, other than a dealer, who is employed, authorized, or | 4071 |
appointed by a dealer to sell securities within this state. | 4072 |
(2) The general partners of a partnership, and the executive | 4073 |
officers of a corporation or unincorporated association, licensed | 4074 |
as a dealer are not salespersons within the meaning of this | 4075 |
definition, nor are such clerical or other employees of an issuer | 4076 |
or dealer as are employed for work to which the sale of securities | 4077 |
is secondary and incidental; but the division of securities may | 4078 |
require a license from any such partner, executive officer, or | 4079 |
employee if it determines that protection of the public | 4080 |
necessitates the licensing. | 4081 |
(3) "Licensed salesperson" means a salesperson licensed under | 4082 |
this chapter. | 4083 |
(G) "Issuer" means every person who has issued, proposes to | 4084 |
issue, or issues any security. | 4085 |
(H) "Director" means each director or trustee of a | 4086 |
corporation, each trustee of a trust, each general partner of a | 4087 |
partnership, except a partnership association, each manager of a | 4088 |
partnership association, and any person vested with managerial or | 4089 |
directory power over an issuer not having a board of directors or | 4090 |
trustees. | 4091 |
(I) "Incorporator" means any incorporator of a corporation | 4092 |
and any organizer of, or any person participating, other than in a | 4093 |
representative or professional capacity, in the organization of an | 4094 |
unincorporated issuer. | 4095 |
(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent | 4096 |
practices," or "fraudulent transactions" means anything recognized | 4097 |
on or after July 22, 1929, as such in courts of law or equity; any | 4098 |
device, scheme, or artifice to defraud or to obtain money or | 4099 |
property by means of any false pretense, representation, or | 4100 |
promise; any fictitious or pretended purchase or sale of | 4101 |
securities; and any act, practice, transaction, or course of | 4102 |
business relating to the purchase or sale of securities that is | 4103 |
fraudulent or that has operated or would operate as a fraud upon | 4104 |
the seller or purchaser. | 4105 |
(K) Except as otherwise specifically provided, whenever any | 4106 |
classification or computation is based upon "par value," as | 4107 |
applied to securities without par value, the average of the | 4108 |
aggregate consideration received or to be received by the issuer | 4109 |
for each class of those securities shall be used as the basis for | 4110 |
that classification or computation. | 4111 |
(L)(1) "Intangible property" means patents, copyrights, | 4112 |
secret processes, formulas, services, good will, promotion and | 4113 |
organization fees and expenses, trademarks, trade brands, trade | 4114 |
names, licenses, franchises, any other assets treated as | 4115 |
intangible according to generally accepted accounting principles, | 4116 |
and securities, accounts receivable, or contract rights having no | 4117 |
readily determinable value. | 4118 |
(2) "Tangible property" means all property other than | 4119 |
intangible property and includes securities, accounts receivable, | 4120 |
and contract rights, when the securities, accounts receivable, or | 4121 |
contract rights have a readily determinable value. | 4122 |
(M) "Public utilities" means those utilities defined in | 4123 |
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised | 4124 |
Code; in the case of a foreign corporation, it means those | 4125 |
utilities defined as public utilities by the laws of its domicile; | 4126 |
and in the case of any other foreign issuer, it means those | 4127 |
utilities defined as public utilities by the laws of the situs of | 4128 |
its principal place of business. The term always includes | 4129 |
railroads whether or not they are so defined as public utilities. | 4130 |
(N) "State" means any state of the United States, any | 4131 |
territory or possession of the United States, the District of | 4132 |
Columbia, and any province of Canada. | 4133 |
(O) "Bank" means any bank, trust company, savings and loan | 4134 |
association, savings bank, or credit union that is incorporated or | 4135 |
organized under the laws of the United States, any state of the | 4136 |
United States, Canada, or any province of Canada and that is | 4137 |
subject to regulation or supervision by that country, state, or | 4138 |
province. | 4139 |
(P) "Include," when used in a definition, does not exclude | 4140 |
other things or persons otherwise within the meaning of the term | 4141 |
defined. | 4142 |
(Q)(1) "Registration by description" means that the | 4143 |
requirements of section 1707.08 of the Revised Code have been | 4144 |
complied with. | 4145 |
(2) "Registration by qualification" means that the | 4146 |
requirements of sections 1707.09 and 1707.11 of the Revised Code | 4147 |
have been complied with. | 4148 |
(3) "Registration by coordination" means that there has been | 4149 |
compliance with section 1707.091 of the Revised Code. Reference in | 4150 |
this chapter to registration by qualification also shall be deemed | 4151 |
to include registration by coordination unless the context | 4152 |
otherwise indicates. | 4153 |
(R) "Intoxicating liquor" includes all liquids and compounds | 4154 |
that contain more than three and two-tenths per cent of alcohol by | 4155 |
weight and are fit for use for beverage purposes. | 4156 |
(S) "Institutional investor" means any corporation, bank, | 4157 |
insurance company, pension fund or pension fund trust, employees' | 4158 |
profit-sharing fund or employees' profit-sharing trust, any | 4159 |
association engaged, as a substantial part of its business or | 4160 |
operations, in purchasing or holding securities, or any trust in | 4161 |
respect of which a bank is trustee or cotrustee. "Institutional | 4162 |
investor" does not include any business entity formed for the | 4163 |
primary purpose of evading sections 1707.01 to 1707.45 of the | 4164 |
Revised Code. | 4165 |
(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a, | 4166 |
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, | 4167 |
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, | 4168 |
"Investment Advisers Act of 1940," 54 Stat. 847, 15 U.S.C. 80b, | 4169 |
and "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C. 80a | 4170 |
mean the federal statutes of those names as amended before or | 4171 |
after March 18, 1999. | 4172 |
(U) "Securities and exchange commission" means the securities | 4173 |
and exchange commission established by the Securities Exchange Act | 4174 |
of 1934. | 4175 |
(V)(1) "Control bid" means the purchase of or offer to | 4176 |
purchase any equity security of a subject company from a resident | 4177 |
of this state if either of the following applies: | 4178 |
(a) After the purchase of that security, the offeror would be | 4179 |
directly or indirectly the beneficial owner of more than ten per | 4180 |
cent of any class of the issued and outstanding equity securities | 4181 |
of the issuer. | 4182 |
(b) The offeror is the subject company, there is a pending | 4183 |
control bid by a person other than the issuer, and the number of | 4184 |
the issued and outstanding shares of the subject company would be | 4185 |
reduced by more than ten per cent. | 4186 |
(2) For purposes of division (V)(1) of this section, "control | 4187 |
bid" does not include any of the following: | 4188 |
(a) A bid made by a dealer for the dealer's own account in | 4189 |
the ordinary course of business of buying and selling securities; | 4190 |
(b) An offer to acquire any equity security solely in | 4191 |
exchange for any other security, or the acquisition of any equity | 4192 |
security pursuant to an offer, for the sole account of the | 4193 |
offeror, in good faith and not for the purpose of avoiding the | 4194 |
provisions of this chapter, and not involving any public offering | 4195 |
of the other security within the meaning of Section 4 of Title I | 4196 |
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2), | 4197 |
as amended; | 4198 |
(c) Any other offer to acquire any equity security, or the | 4199 |
acquisition of any equity security pursuant to an offer, for the | 4200 |
sole account of the offeror, from not more than fifty persons, in | 4201 |
good faith and not for the purpose of avoiding the provisions of | 4202 |
this chapter. | 4203 |
(W) "Offeror" means a person who makes, or in any way | 4204 |
participates or aids in making, a control bid and includes persons | 4205 |
acting jointly or in concert, or who intend to exercise jointly or | 4206 |
in concert any voting rights attached to the securities for which | 4207 |
the control bid is made and also includes any subject company | 4208 |
making a control bid for its own securities. | 4209 |
(X)(1) "Investment adviser" means any person who, for | 4210 |
compensation, engages in the business of advising others, either | 4211 |
directly or through publications or writings, as to the value of | 4212 |
securities or as to the advisability of investing in, purchasing, | 4213 |
or selling securities, or who, for compensation and as a part of | 4214 |
regular business, issues or promulgates analyses or reports | 4215 |
concerning securities. | 4216 |
(2) "Investment adviser" does not mean any of the following: | 4217 |
(a) Any attorney, accountant, engineer, or teacher, whose | 4218 |
performance of investment advisory services described in division | 4219 |
(X)(1) of this section is solely incidental to the practice of the | 4220 |
attorney's, accountant's, engineer's, or teacher's profession; | 4221 |
(b) A publisher of any bona fide newspaper, news magazine, or | 4222 |
business or financial publication of general and regular | 4223 |
circulation; | 4224 |
(c) A person who acts solely as an investment adviser | 4225 |
representative; | 4226 |
(d) A bank holding company, as defined in the "Bank Holding | 4227 |
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an | 4228 |
investment company; | 4229 |
(e) A bank, or any receiver, conservator, or other | 4230 |
liquidating agent of a bank; | 4231 |
(f) Any licensed dealer or licensed salesperson whose | 4232 |
performance of investment advisory services described in division | 4233 |
(X)(1) of this section is solely incidental to the conduct of the | 4234 |
dealer's or salesperson's business as a licensed dealer or | 4235 |
licensed salesperson and who receives no special compensation for | 4236 |
the services; | 4237 |
(g) Any person, the advice, analyses, or reports of which do | 4238 |
not relate to securities other than securities that are direct | 4239 |
obligations of, or obligations guaranteed as to principal or | 4240 |
interest by, the United States, or securities issued or guaranteed | 4241 |
by corporations in which the United States has a direct or | 4242 |
indirect interest, and that have been designated by the secretary | 4243 |
of the treasury as exempt securities as defined in the "Securities | 4244 |
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c; | 4245 |
(h) Any person that is excluded from the definition of | 4246 |
investment adviser pursuant to section 202(a)(11)(A) to (E) of the | 4247 |
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that | 4248 |
has received an order from the securities and exchange commission | 4249 |
under section 202(a)(11)(F) of the "Investment Advisers Act of | 4250 |
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not | 4251 |
within the intent of section 202(a)(11) of the Investment Advisers | 4252 |
Act of 1940. | 4253 |
(i) A person who acts solely as a state retirement system | 4254 |
investment officer; | 4255 |
(j) Any other person that the division designates by rule, if | 4256 |
the division finds that the designation is necessary or | 4257 |
appropriate in the public interest or for the protection of | 4258 |
investors or clients and consistent with the purposes fairly | 4259 |
intended by the policy and provisions of this chapter. | 4260 |
(Y)(1) "Subject company" means an issuer that satisfies both | 4261 |
of the following: | 4262 |
(a) Its principal place of business or its principal | 4263 |
executive office is located in this state, or it owns or controls | 4264 |
assets located within this state that have a fair market value of | 4265 |
at least one million dollars. | 4266 |
(b) More than ten per cent of its beneficial or record equity | 4267 |
security holders are resident in this state, more than ten per | 4268 |
cent of its equity securities are owned beneficially or of record | 4269 |
by residents in this state, or more than one thousand of its | 4270 |
beneficial or record equity security holders are resident in this | 4271 |
state. | 4272 |
(2) The division of securities may adopt rules to establish | 4273 |
more specific application of the provisions set forth in division | 4274 |
(Y)(1) of this section. Notwithstanding the provisions set forth | 4275 |
in division (Y)(1) of this section and any rules adopted under | 4276 |
this division, the division, by rule or in an adjudicatory | 4277 |
proceeding, may make a determination that an issuer does not | 4278 |
constitute a "subject company" under division (Y)(1) of this | 4279 |
section if appropriate review of control bids involving the issuer | 4280 |
is to be made by any regulatory authority of another jurisdiction. | 4281 |
(Z) "Beneficial owner" includes any person who directly or | 4282 |
indirectly through any contract, arrangement, understanding, or | 4283 |
relationship has or shares, or otherwise has or shares, the power | 4284 |
to vote or direct the voting of a security or the power to dispose | 4285 |
of, or direct the disposition of, the security. "Beneficial | 4286 |
ownership" includes the right, exercisable within sixty days, to | 4287 |
acquire any security through the exercise of any option, warrant, | 4288 |
or right, the conversion of any convertible security, or | 4289 |
otherwise. Any security subject to any such option, warrant, | 4290 |
right, or conversion privilege held by any person shall be deemed | 4291 |
to be outstanding for the purpose of computing the percentage of | 4292 |
outstanding securities of the class owned by that person, but | 4293 |
shall not be deemed to be outstanding for the purpose of computing | 4294 |
the percentage of the class owned by any other person. A person | 4295 |
shall be deemed the beneficial owner of any security beneficially | 4296 |
owned by any relative or spouse or relative of the spouse residing | 4297 |
in the home of that person, any trust or estate in which that | 4298 |
person owns ten per cent or more of the total beneficial interest | 4299 |
or serves as trustee or executor, any corporation or entity in | 4300 |
which that person owns ten per cent or more of the equity, and any | 4301 |
affiliate or associate of that person. | 4302 |
(AA) "Offeree" means the beneficial or record owner of any | 4303 |
security that an offeror acquires or offers to acquire in | 4304 |
connection with a control bid. | 4305 |
(BB) "Equity security" means any share or similar security, | 4306 |
or any security convertible into any such security, or carrying | 4307 |
any warrant or right to subscribe to or purchase any such | 4308 |
security, or any such warrant or right, or any other security | 4309 |
that, for the protection of security holders, is treated as an | 4310 |
equity security pursuant to rules of the division of securities. | 4311 |
(CC)(1) "Investment adviser representative" means a | 4312 |
supervised person of an investment adviser, provided that the | 4313 |
supervised person has more than five clients who are natural | 4314 |
persons other than excepted persons defined in division (EE) of | 4315 |
this section, and that more than ten per cent of the supervised | 4316 |
person's clients are natural persons other than excepted persons | 4317 |
defined in division (EE) of this section. "Investment adviser | 4318 |
representative" does not mean any of the following: | 4319 |
(a) A supervised person that does not on a regular basis | 4320 |
solicit, meet with, or otherwise communicate with clients of the | 4321 |
investment adviser; | 4322 |
(b) A supervised person that provides only investment | 4323 |
advisory services described in division (X)(1) of this section by | 4324 |
means of written materials or oral statements that do not purport | 4325 |
to meet the objectives or needs of specific individuals or | 4326 |
accounts; | 4327 |
(c) Any other person that the division designates by rule, if | 4328 |
the division finds that the designation is necessary or | 4329 |
appropriate in the public interest or for the protection of | 4330 |
investors or clients and is consistent with the provisions fairly | 4331 |
intended by the policy and provisions of this chapter. | 4332 |
(2) For the purpose of the calculation of clients in division | 4333 |
(CC)(1) of this section, a natural person and the following | 4334 |
persons are deemed a single client: Any minor child of the natural | 4335 |
person; any relative, spouse, or relative of the spouse of the | 4336 |
natural person who has the same principal residence as the natural | 4337 |
person; all accounts of which the natural person or the persons | 4338 |
referred to in division (CC)(2) of this section are the only | 4339 |
primary beneficiaries; and all trusts of which the natural person | 4340 |
or persons referred to in division (CC)(2) of this section are the | 4341 |
only primary beneficiaries. Persons who are not residents of the | 4342 |
United States need not be included in the calculation of clients | 4343 |
under division (CC)(1) of this section. | 4344 |
(3) If subsequent to March 18, 1999, amendments are enacted | 4345 |
or adopted defining "investment adviser representative" for | 4346 |
purposes of the Investment Advisers Act of 1940 or additional | 4347 |
rules or regulations are promulgated by the securities and | 4348 |
exchange commission regarding the definition of "investment | 4349 |
adviser representative" for purposes of the Investment Advisers | 4350 |
Act of 1940, the division of securities shall, by rule, adopt the | 4351 |
substance of the amendments, rules, or regulations, unless the | 4352 |
division finds that the amendments, rules, or regulations are not | 4353 |
necessary for the protection of investors or in the public | 4354 |
interest. | 4355 |
(DD) "Supervised person" means a natural person who is any of | 4356 |
the following: | 4357 |
(1) A partner, officer, or director of an investment adviser, | 4358 |
or other person occupying a similar status or performing similar | 4359 |
functions with respect to an investment adviser; | 4360 |
(2) An employee of an investment adviser; | 4361 |
(3) A person who provides investment advisory services | 4362 |
described in division (X)(1) of this section on behalf of the | 4363 |
investment adviser and is subject to the supervision and control | 4364 |
of the investment adviser. | 4365 |
(EE) "Excepted person" means a natural person to whom any of | 4366 |
the following applies: | 4367 |
(1) Immediately after entering into the investment advisory | 4368 |
contract with the investment adviser, the person has at least | 4369 |
seven hundred fifty thousand dollars under the management of the | 4370 |
investment adviser. | 4371 |
(2) The investment adviser reasonably believes either of the | 4372 |
following at the time the investment advisory contract is entered | 4373 |
into with the person: | 4374 |
(a) The person has a net worth, together with assets held | 4375 |
jointly with a spouse, of more than one million five hundred | 4376 |
thousand dollars. | 4377 |
(b) The person is a qualified purchaser as defined in | 4378 |
division (FF) of this section. | 4379 |
(3) Immediately prior to entering into an investment advisory | 4380 |
contract with the investment adviser, the person is either of the | 4381 |
following: | 4382 |
(a) An executive officer, director, trustee, general partner, | 4383 |
or person serving in a similar capacity, of the investment | 4384 |
adviser; | 4385 |
(b) An employee of the investment adviser, other than an | 4386 |
employee performing solely clerical, secretarial, or | 4387 |
administrative functions or duties for the investment adviser, | 4388 |
which employee, in connection with the employee's regular | 4389 |
functions or duties, participates in the investment activities of | 4390 |
the investment adviser, provided that, for at least twelve months, | 4391 |
the employee has been performing such nonclerical, nonsecretarial, | 4392 |
or nonadministrative functions or duties for or on behalf of the | 4393 |
investment adviser or performing substantially similar functions | 4394 |
or duties for or on behalf of another company. | 4395 |
If subsequent to March 18, 1999, amendments are enacted or | 4396 |
adopted defining "excepted person" for purposes of the Investment | 4397 |
Advisers Act of 1940 or additional rules or regulations are | 4398 |
promulgated by the securities and exchange commission regarding | 4399 |
the definition of "excepted person" for purposes of the Investment | 4400 |
Advisers Act of 1940, the division of securities shall, by rule, | 4401 |
adopt the substance of the amendments, rules, or regulations, | 4402 |
unless the division finds that the amendments, rules, or | 4403 |
regulations are not necessary for the protection of investors or | 4404 |
in the public interest. | 4405 |
(FF)(1) "Qualified purchaser" means either of the following: | 4406 |
(a) A natural person who owns not less than five million | 4407 |
dollars in investments as defined by rule by the division of | 4408 |
securities; | 4409 |
(b) A natural person, acting for the person's own account or | 4410 |
accounts of other qualified purchasers, who in the aggregate owns | 4411 |
and invests on a discretionary basis, not less than twenty-five | 4412 |
million dollars in investments as defined by rule by the division | 4413 |
of securities. | 4414 |
(2) If subsequent to March 18, 1999, amendments are enacted | 4415 |
or adopted defining "qualified purchaser" for purposes of the | 4416 |
Investment Advisers Act of 1940 or additional rules or regulations | 4417 |
are promulgated by the securities and exchange commission | 4418 |
regarding the definition of "qualified purchaser" for purposes of | 4419 |
the Investment Advisers Act of 1940, the division of securities | 4420 |
shall, by rule, adopt the amendments, rules, or regulations, | 4421 |
unless the division finds that the amendments, rules, or | 4422 |
regulations are not necessary for the protection of investors or | 4423 |
in the public interest. | 4424 |
(GG)(1) "Purchase" has the full meaning of "purchase" as | 4425 |
applied by or accepted in courts of law or equity and includes | 4426 |
every acquisition of, or attempt to acquire, a security or an | 4427 |
interest in a security. "Purchase" also includes a contract to | 4428 |
purchase, an exchange, an attempt to purchase, an option to | 4429 |
purchase, a solicitation of a purchase, a solicitation of an offer | 4430 |
to sell, a subscription, or an offer to purchase, directly or | 4431 |
indirectly, by agent, circular, pamphlet, advertisement, or | 4432 |
otherwise. | 4433 |
(2) "Purchase" means any act by which a purchase is made. | 4434 |
(3) Any security given with, or as a bonus on account of, any | 4435 |
purchase of securities is conclusively presumed to constitute a | 4436 |
part of the subject of that purchase. | 4437 |
(HH) "Life settlement interest" means the entire interest or | 4438 |
any fractional interest in an insurance policy or certificate of | 4439 |
insurance, or in an insurance benefit under such a policy or | 4440 |
certificate, that is the subject of a life settlement contract. | 4441 |
For purposes of this division, "life settlement contract" | 4442 |
means an agreement for the purchase, sale, assignment, transfer, | 4443 |
devise, or bequest of any portion of the death benefit or | 4444 |
ownership of any life insurance policy or contract, in return for | 4445 |
consideration or any other thing of value that is less than the | 4446 |
expected death benefit of the life insurance policy or contract. | 4447 |
"Life settlement contract" includes a viatical settlement contract | 4448 |
as defined in section 3916.01 of the Revised Code, but does not | 4449 |
include any of the following: | 4450 |
(1) A loan by an insurer under the terms of a life insurance | 4451 |
policy, including, but not limited to, a loan secured by the cash | 4452 |
value of the policy; | 4453 |
(2) An agreement with a bank that takes an assignment of a | 4454 |
life insurance policy as collateral for a loan; | 4455 |
(3) The provision of accelerated benefits as defined in | 4456 |
section 3915.21 of the Revised Code; | 4457 |
(4) Any agreement between an insurer and a reinsurer; | 4458 |
(5) An agreement by an individual to purchase an existing | 4459 |
life insurance policy or contract from the original owner of the | 4460 |
policy or contract, if the individual does not enter into more | 4461 |
than one life settlement contract per calendar year; | 4462 |
(6) The initial purchase of an insurance policy or | 4463 |
certificate of insurance from its owner by a viatical settlement | 4464 |
provider, as defined in section 3916.01 of the Revised Code, that | 4465 |
is licensed under Chapter 3916. of the Revised Code. | 4466 |
(II) "State retirement system" means the public employees | 4467 |
retirement system, Ohio police and fire pension fund, state | 4468 |
teachers retirement system, school employees retirement system, | 4469 |
and state highway patrol retirement system. | 4470 |
(JJ) "State retirement system investment officer" means an | 4471 |
individual employed by a state retirement system as a chief | 4472 |
investment officer, assistant investment officer, or the person in | 4473 |
charge of a class of assets or in a position that is substantially | 4474 |
equivalent to chief investment officer, assistant investment | 4475 |
officer, or person in charge of a class of assets. | 4476 |
Sec. 1707.03. (A) As used in this section, "exempt" means | 4477 |
that, except in the case of securities the right to buy, sell, or | 4478 |
deal in which has been suspended or revoked under an existing | 4479 |
order of the division of securities under section 1707.13 of the | 4480 |
Revised Code or under a cease and desist order under division | 4481 |
4482 | |
securities may be carried on and completed without compliance with | 4483 |
sections 1707.08 to 1707.11 of the Revised Code. | 4484 |
(B) A sale of securities made by or on behalf of a bona fide | 4485 |
owner, neither the issuer nor a dealer, is exempt if the sale is | 4486 |
made in good faith and not for the purpose of avoiding this | 4487 |
chapter and is not made in the course of repeated and successive | 4488 |
transactions of a similar character. Any sale of securities over a | 4489 |
stock exchange that is lawfully conducted in this state and | 4490 |
regularly open for public patronage and that has been established | 4491 |
and operated for a period of at least five years prior to the sale | 4492 |
at a commission not exceeding the commission regularly charged in | 4493 |
such transactions also is exempt. | 4494 |
(C) The sale of securities by executors, administrators, | 4495 |
receivers, trustees, or anyone acting in a fiduciary capacity is | 4496 |
exempt, where such relationship was created by law, by a will, or | 4497 |
by judicial authority, and where such sales are subject to | 4498 |
approval by, or are made in pursuance to authority granted by, any | 4499 |
court of competent jurisdiction or are otherwise authorized and | 4500 |
lawfully made by such fiduciary. | 4501 |
(D) A sale to the issuer, to a dealer, or to an institutional | 4502 |
investor is exempt. | 4503 |
(E) A sale in good faith, and not for the purpose of avoiding | 4504 |
this chapter, by a pledgee of a security pledged for a bona fide | 4505 |
debt is exempt. | 4506 |
(F) The sale at public auction by a corporation of shares of | 4507 |
its stock because of delinquency in payment for the shares is | 4508 |
exempt. | 4509 |
(G)(1) The giving of any conversion right with, or on account | 4510 |
of the purchase of, any security that is exempt, is the subject | 4511 |
matter of an exempt transaction, has been registered by | 4512 |
description, by coordination, or by qualification, or is the | 4513 |
subject matter of a transaction that has been registered by | 4514 |
description is exempt. | 4515 |
(2) The giving of any subscription right, warrant, or option | 4516 |
to purchase a security or right to receive a security upon | 4517 |
exchange, which security is exempt at the time the right, warrant, | 4518 |
or option to purchase or right to receive is given, is the subject | 4519 |
matter of an exempt transaction, is registered by description, by | 4520 |
coordination, or by qualification, or is the subject matter of a | 4521 |
transaction that has been registered by description is exempt. | 4522 |
(3) The giving of any subscription right or any warrant or | 4523 |
option to purchase a security, which right, warrant, or option | 4524 |
expressly provides that it shall not be exercisable except for a | 4525 |
security that at the time of the exercise is exempt, is the | 4526 |
subject matter of an exempt transaction, is registered by | 4527 |
description, by coordination, or by qualification, or at such time | 4528 |
is the subject matter of a transaction that has been registered by | 4529 |
description is exempt. | 4530 |
(H) The sale of notes, bonds, or other evidences of | 4531 |
indebtedness that are secured by a mortgage lien upon real estate, | 4532 |
leasehold estate other than oil, gas, or mining leasehold, or | 4533 |
tangible personal property, or which evidence of indebtedness is | 4534 |
due under or based upon a conditional-sale contract, if all such | 4535 |
notes, bonds, or other evidences of indebtedness are sold to a | 4536 |
single purchaser at a single sale, is exempt. | 4537 |
(I) The delivery of securities by the issuer on the exercise | 4538 |
of conversion rights, the sale of securities by the issuer on | 4539 |
exercise of subscription rights or of warrants or options to | 4540 |
purchase securities, the delivery of voting-trust certificates for | 4541 |
securities deposited under a voting-trust agreement, the delivery | 4542 |
of deposited securities on surrender of voting-trust certificates, | 4543 |
and the delivery of final certificates on surrender of interim | 4544 |
certificates are exempt; but the sale of securities on exercise of | 4545 |
subscription rights, warrants, or options is not an exempt | 4546 |
transaction unless those rights, warrants, or options when granted | 4547 |
were the subject matter of an exempt transaction under division | 4548 |
(G) of this section or were registered by description, by | 4549 |
coordination, or by qualification. | 4550 |
(J) The sale of securities by a bank, savings and loan | 4551 |
association, savings bank, or credit union organized under the | 4552 |
laws of the United States or of this state is exempt if at a | 4553 |
profit to that seller of not more than two per cent of the total | 4554 |
sale price of the securities. | 4555 |
(K)(1) The distribution by a corporation of its securities to | 4556 |
its security holders as a share dividend or other distribution out | 4557 |
of earnings or surplus is exempt. | 4558 |
(2) The exchange or distribution by the issuer of any of its | 4559 |
securities or of the securities of any of the issuer's wholly | 4560 |
owned subsidiaries exclusively with or to its existing security | 4561 |
holders, if no commission or other remuneration is given directly | 4562 |
or indirectly for soliciting the exchange, is exempt. | 4563 |
(3) The sale of preorganization subscriptions for shares of | 4564 |
stock of a corporation prior to the incorporation of the | 4565 |
corporation is exempt, when the sale is evidenced by a written | 4566 |
agreement, no remuneration is given, or promised, directly or | 4567 |
indirectly, for or in connection with the sale of those | 4568 |
securities, and no consideration is received, directly or | 4569 |
indirectly, by any person from the purchasers of those securities | 4570 |
until registration by qualification, by coordination, or by | 4571 |
description of those securities is made under this chapter. | 4572 |
(L) The issuance of securities in exchange for one or more | 4573 |
bona fide outstanding securities, claims, or property interests, | 4574 |
not including securities sold for a consideration payable in whole | 4575 |
or in part in cash, under a plan of reorganization, | 4576 |
recapitalization, or refinancing approved by a court pursuant to | 4577 |
the Bankruptcy Act of the United States or to any other federal | 4578 |
act giving any federal court jurisdiction over such plan of | 4579 |
reorganization, or under a plan of reorganization approved by a | 4580 |
court of competent jurisdiction of any state of the United States | 4581 |
is exempt. As used in this division, "reorganization," | 4582 |
"recapitalization," and "refinancing" have the same meanings as in | 4583 |
section 1707.04 of the Revised Code. | 4584 |
(M) A sale by a licensed dealer, acting either as principal | 4585 |
or as agent, of securities issued and outstanding before the sale | 4586 |
is exempt, unless the sale is of one or more of the following: | 4587 |
(1) Securities constituting the whole or a part of an unsold | 4588 |
allotment to or subscription by a dealer as an underwriter or | 4589 |
other participant in the distribution of those securities by the | 4590 |
issuer, whether that distribution is direct or through an | 4591 |
underwriter, provided that, if the issuer is such by reason of | 4592 |
owning one-fourth or more of those securities, the dealer has | 4593 |
knowledge of this fact or reasonable cause to believe this fact; | 4594 |
(2) Any class of shares issued by a corporation when the | 4595 |
number of beneficial owners of that class is less than | 4596 |
twenty-five, with the record owner of securities being deemed the | 4597 |
beneficial owner for this purpose, in the absence of actual | 4598 |
knowledge to the contrary; | 4599 |
(3) Securities that within one year were purchased outside | 4600 |
this state or within one year were transported into this state, if | 4601 |
the dealer has knowledge or reasonable cause to believe, before | 4602 |
the sale of those securities, that within one year they were | 4603 |
purchased outside this state or within one year were transported | 4604 |
into this state; but such a sale of those securities is exempt if | 4605 |
any of the following occurs: | 4606 |
(a) A recognized securities manual contains the names of the | 4607 |
issuer's officers and directors, a balance sheet of the issuer as | 4608 |
of a date within eighteen months, and a profit and loss statement | 4609 |
for either the fiscal year preceding that date or the most recent | 4610 |
year of operations; | 4611 |
(b) Those securities, or securities of the same class, within | 4612 |
one year were registered or qualified under section 1707.09 or | 4613 |
1707.091 of the Revised Code, and that registration or | 4614 |
qualification is in full force and effect; | 4615 |
(c) The sale is made by a licensed dealer on behalf of the | 4616 |
bona fide owner of those securities in accordance with division | 4617 |
(B) of this section; | 4618 |
(d) Those securities were transported into Ohio in a | 4619 |
transaction of the type described in division (L), (K), or (I) of | 4620 |
this section, or in a transaction registered under division (A) of | 4621 |
section 1707.06 of the Revised Code. | 4622 |
(N) For the purpose of this division and division (M) of this | 4623 |
section, "underwriter" means any person who has purchased from an | 4624 |
issuer with a view to, or sells for an issuer in connection with, | 4625 |
the distribution of any security, or who participates directly or | 4626 |
indirectly in any such undertaking or in the underwriting thereof, | 4627 |
but "underwriter" does not include a person whose interest is | 4628 |
limited to a discount, commission, or profit from the underwriter | 4629 |
or from a dealer that is not in excess of the customary | 4630 |
distributors' or sellers' discount, commission, or profit; and | 4631 |
"issuer" includes any person or any group of persons acting in | 4632 |
concert in the sale of such securities, owning beneficially | 4633 |
one-fourth or more of the outstanding securities of the class | 4634 |
involved in the transactions in question, with the record owner of | 4635 |
securities being deemed the beneficial owner for this purpose, in | 4636 |
the absence of actual knowledge to the contrary. | 4637 |
(O)(1) The sale of any equity security is exempt if all the | 4638 |
following conditions are satisfied: | 4639 |
(a) The sale is by the issuer of the security. | 4640 |
(b) The total number of purchasers in this state of all | 4641 |
securities issued or sold by the issuer in reliance upon this | 4642 |
exemption during the period of one year ending with the date of | 4643 |
the sale does not exceed ten. A sale of securities registered | 4644 |
under this chapter or sold pursuant to an exemption under this | 4645 |
chapter other than this exemption shall not be integrated with a | 4646 |
sale pursuant to this exemption in computing the number of | 4647 |
purchasers under this exemption. | 4648 |
(c) No advertisement, article, notice, or other communication | 4649 |
published in any newspaper, magazine, or similar medium or | 4650 |
broadcast over television or radio is used in connection with the | 4651 |
sale, but the use of an offering circular or other communication | 4652 |
delivered by the issuer to selected individuals does not destroy | 4653 |
this exemption. | 4654 |
(d) The issuer reasonably believes after reasonable | 4655 |
investigation that the purchaser is purchasing for investment. | 4656 |
(e) The aggregate commission, discount, and other | 4657 |
remuneration, excluding legal, accounting, and printing fees, paid | 4658 |
or given directly or indirectly does not exceed ten per cent of | 4659 |
the initial offering price. | 4660 |
(f) Any such commission, discount, or other remuneration for | 4661 |
sales in this state is paid or given only to dealers or | 4662 |
salespersons registered pursuant to this chapter. | 4663 |
(2) For the purposes of division (O)(1) of this section, each | 4664 |
of the following is deemed to be a single purchaser of a security: | 4665 |
husband and wife, a child and its parent or guardian when the | 4666 |
parent or guardian holds the security for the benefit of the | 4667 |
child, a corporation, a limited liability company, a partnership, | 4668 |
an association or other unincorporated entity, a joint-stock | 4669 |
company, or a trust, but only if the corporation, limited | 4670 |
liability company, partnership, association, entity, joint-stock | 4671 |
company, or trust was not formed for the purpose of purchasing the | 4672 |
security. | 4673 |
(3) As used in division (O)(1) of this section, "equity | 4674 |
security" means any stock or similar security of a corporation or | 4675 |
any membership interest in a limited liability company; or any | 4676 |
security convertible, with or without consideration, into such a | 4677 |
security, or carrying any warrant or right to subscribe to or | 4678 |
purchase such a security; or any such warrant or right; or any | 4679 |
other security that the division considers necessary or | 4680 |
appropriate, by such rules as it may prescribe in the public | 4681 |
interest or for the protection of investors, to treat as an equity | 4682 |
security. | 4683 |
(P) The sale of securities representing interests in or under | 4684 |
profit-sharing or participation agreements relating to oil or gas | 4685 |
wells located in this state, or representing interests in or under | 4686 |
oil or gas leases of real estate situated in this state, is exempt | 4687 |
if the securities are issued by an individual, partnership, | 4688 |
limited partnership, partnership association, syndicate, pool, | 4689 |
trust or trust fund, or other unincorporated association and if | 4690 |
each of the following conditions is complied with: | 4691 |
(1) The beneficial owners of the securities do not, and will | 4692 |
not after the sale, exceed five natural persons; | 4693 |
(2) The securities constitute or represent interests in not | 4694 |
more than one oil or gas well; | 4695 |
(3) A certificate or other instrument in writing is furnished | 4696 |
to each purchaser of the securities at or before the consummation | 4697 |
of the sale, disclosing the maximum commission, compensation for | 4698 |
services, cost of lease, and expenses with respect to the sale of | 4699 |
such interests and with respect to the promotion, development, and | 4700 |
management of the oil or gas well, and the total of that | 4701 |
commission, compensation, costs, and expenses does not exceed | 4702 |
twenty-five per cent of the aggregate interests in the oil or gas | 4703 |
well, exclusive of any landowner's rental or royalty; | 4704 |
(4) The sale is made in good faith and not for the purpose of | 4705 |
avoiding this chapter. | 4706 |
(Q) The sale of any security is exempt if all of the | 4707 |
following conditions are satisfied: | 4708 |
(1) The provisions of section 5 of the Securities Act of 1933 | 4709 |
do not apply to the sale by reason of an exemption under section 4 | 4710 |
(2) of that act. | 4711 |
(2) The aggregate commission, discount, and other | 4712 |
remuneration, excluding legal, accounting, and printing fees, paid | 4713 |
or given directly or indirectly does not exceed ten per cent of | 4714 |
the initial offering price. | 4715 |
(3) Any such commission, discount, or other remuneration for | 4716 |
sales in this state is paid or given only to dealers or | 4717 |
salespersons registered under this chapter. | 4718 |
(4) The issuer or dealer files with the division of | 4719 |
securities, not later than sixty days after the sale, a report | 4720 |
setting forth the name and address of the issuer, the total amount | 4721 |
of the securities sold under this division, the number of persons | 4722 |
to whom the securities were sold, the price at which the | 4723 |
securities were sold, and the commissions or discounts paid or | 4724 |
given. | 4725 |
(5) The issuer pays a filing fee of one hundred dollars for | 4726 |
the first filing and fifty dollars for every subsequent filing | 4727 |
during each calendar year. | 4728 |
(R) A sale of a money order, travelers' check, or other | 4729 |
instrument for the transmission of money by a person qualified to | 4730 |
engage in such business under section 1109.60 or Chapter 1315. of | 4731 |
the Revised Code is exempt. | 4732 |
(S) A sale by a licensed dealer of securities that are in the | 4733 |
process of registration under the Securities Act of 1933, unless | 4734 |
exempt under that act, and that are in the process of | 4735 |
registration, if registration is required under this chapter, is | 4736 |
exempt, provided that no sale of that nature shall be consummated | 4737 |
prior to the registration by description or qualification of the | 4738 |
securities. | 4739 |
(T) The execution by a licensed dealer of orders for the | 4740 |
purchase of any security is exempt, provided that the dealer acts | 4741 |
only as agent for the purchaser, has made no solicitation of the | 4742 |
order to purchase the security, has no interest in the | 4743 |
distribution of the security, and delivers to the purchaser | 4744 |
written confirmation of the transaction that clearly itemizes the | 4745 |
dealer's commission. "Solicitation," as used in this division, | 4746 |
means solicitation of the order for the specific security | 4747 |
purchased and does not include general solicitations or | 4748 |
advertisements of any kind. | 4749 |
(U) The sale insofar as the security holders of a person are | 4750 |
concerned, where, pursuant to statutory provisions of the | 4751 |
jurisdiction under which that person is organized or pursuant to | 4752 |
provisions contained in its articles of incorporation, certificate | 4753 |
of incorporation, partnership agreement, declaration of trust, | 4754 |
trust indenture, or similar controlling instrument, there is | 4755 |
submitted to the security holders, for their vote or consent, (1) | 4756 |
a plan or agreement for a reclassification of securities of that | 4757 |
person that involves the substitution of a security of that person | 4758 |
for another security of that person, (2) a plan or agreement of | 4759 |
merger or consolidation or a similar plan or agreement of | 4760 |
acquisition in which the securities of that person held by the | 4761 |
security holders will become or be exchanged for securities of any | 4762 |
other person, or (3) a plan or agreement for a combination as | 4763 |
defined in division (Q) of section 1701.01 of the Revised Code or | 4764 |
a similar plan or agreement for the transfer of assets of that | 4765 |
person to another person in consideration of the issuance of | 4766 |
securities of any person, is exempt if, with respect to any of the | 4767 |
foregoing transactions, either of the following conditions is | 4768 |
satisfied: | 4769 |
(a) The securities to be issued to the security holders are | 4770 |
effectively registered under sections 6 to 8 of the Securities Act | 4771 |
of 1933 and offered and sold in compliance with section 5 of that | 4772 |
act; | 4773 |
(b) At least twenty days prior to the date on which a meeting | 4774 |
of the security holders is held or the earliest date on which | 4775 |
corporate action may be taken when no meeting is held, there is | 4776 |
submitted to the security holders, by that person, or by the | 4777 |
person whose securities are to be issued in the transaction, | 4778 |
information substantially equivalent to the information that would | 4779 |
be required to be included in a proxy statement or information | 4780 |
statement prepared by or on behalf of the management of an issuer | 4781 |
subject to section 14(a) or 14(c) of the Securities Exchange Act | 4782 |
of 1934. | 4783 |
(V) The sale of any security is exempt if the division by | 4784 |
rule finds that registration is not necessary or appropriate in | 4785 |
the public interest or for the protection of investors. | 4786 |
(W) Any offer or sale of securities made in reliance on the | 4787 |
exemptions provided by Rule 505 of Regulation D made pursuant to | 4788 |
the Securities Act of 1933 and the conditions and definitions | 4789 |
provided by Rules 501 to 503 thereunder is exempt if the offer or | 4790 |
sale satisfies all of the following conditions: | 4791 |
(1) No commission or other remuneration is given, directly or | 4792 |
indirectly, to any person for soliciting or selling to any person | 4793 |
in this state in reliance on the exemption under this division, | 4794 |
except to dealers licensed in this state. | 4795 |
(2)(a) Unless the cause for disqualification is waived under | 4796 |
division (W)(2)(b) of this section, no exemption under this | 4797 |
section is available for the securities of an issuer unless the | 4798 |
issuer did not know and in the exercise of reasonable care could | 4799 |
not have known that any of the following applies to any of the | 4800 |
persons described in Rule 262(a) to (c) of Regulation A under the | 4801 |
Securities Act of 1933: | 4802 |
(i) The person has filed an application for registration or | 4803 |
qualification that is the subject of an effective order entered | 4804 |
against the issuer, its officers, directors, general partners, | 4805 |
controlling persons or affiliates thereof, pursuant to the law of | 4806 |
any state within five years before the filing of a notice required | 4807 |
under division (W)(3) of this section denying effectiveness to, or | 4808 |
suspending or revoking the effectiveness of, the registration | 4809 |
statement. | 4810 |
(ii) The person has been convicted of any offense in | 4811 |
connection with the offer, sale, or purchase of any security or | 4812 |
franchise, or any felony involving fraud or deceit, including, but | 4813 |
not limited to, forgery, embezzlement, fraud, theft, or conspiracy | 4814 |
to defraud. | 4815 |
(iii) The person is subject to an effective administrative | 4816 |
order or judgment that was entered by a state securities | 4817 |
administrator within five years before the filing of a notice | 4818 |
required under division (W)(3) of this section and that prohibits, | 4819 |
denies, or revokes the use of any exemption from securities | 4820 |
registration, prohibits the transaction of business by the person | 4821 |
as a dealer, or is based on fraud, deceit, an untrue statement of | 4822 |
a material fact, or an omission to state a material fact. | 4823 |
(iv) The person is subject to any order, judgment, or decree | 4824 |
of any court entered within five years before the filing of a | 4825 |
notice required under division (W)(3) of this section, | 4826 |
temporarily, preliminarily, or permanently restraining or | 4827 |
enjoining the person from engaging in or continuing any conduct or | 4828 |
practice in connection with the offer, sale, or purchase of any | 4829 |
security, or the making of any false filing with any state. | 4830 |
(b)(i) Any disqualification under this division involving a | 4831 |
dealer may be waived if the dealer is or continues to be licensed | 4832 |
in this state as a dealer after notifying the commissioner of the | 4833 |
act or event causing disqualification. | 4834 |
(ii) The commissioner may waive any disqualification under | 4835 |
this paragraph upon a showing of good cause that it is not | 4836 |
necessary under the circumstances that use of the exemption be | 4837 |
denied. | 4838 |
(3) Not later than five business days before the earlier of | 4839 |
the date on which the first use of an offering document or the | 4840 |
first sale is made in this state in reliance on the exemption | 4841 |
under this division, there is filed with the commissioner a notice | 4842 |
comprised of offering material in compliance with the requirements | 4843 |
of Rule 502 of Regulation D under the Securities Act of 1933 and a | 4844 |
fee of one hundred dollars. Material amendments to the offering | 4845 |
document shall be filed with the commissioner not later than the | 4846 |
date of their first use in this state. | 4847 |
(4) The aggregate commission, discount, and other | 4848 |
remuneration paid or given, directly or indirectly, does not | 4849 |
exceed twelve per cent of the initial offering price, excluding | 4850 |
legal, accounting, and printing fees. | 4851 |
(X) Any offer or sale of securities made in reliance on the | 4852 |
exemption provided in Rule 506 of Regulation D under the | 4853 |
Securities Act of 1933, and in accordance with Rules 501 to 503 of | 4854 |
Regulation D under the Securities Act of 1933, is exempt provided | 4855 |
that all of the following apply: | 4856 |
(1) The issuer makes a notice filing with the division on | 4857 |
form D of the securities and exchange commission within fifteen | 4858 |
days of the first sale in this state; | 4859 |
(2) Any commission, discount, or other remuneration for sales | 4860 |
of securities in this state is paid or given only to dealers or | 4861 |
salespersons licensed under this chapter; | 4862 |
(3) The issuer pays a filing fee of one hundred dollars to | 4863 |
the division; however, no filing fee shall be required to file | 4864 |
amendments to the form D of the securities and exchange | 4865 |
commission. | 4866 |
(Y) The offer or sale of securities by an issuer is exempt | 4867 |
provided that all of the following apply: | 4868 |
(1) The sale of securities is made only to persons who are, | 4869 |
or who the issuer reasonably believes are, accredited investors as | 4870 |
defined in Rule 501 of Regulation D under the Securities Act of | 4871 |
1933. | 4872 |
(2) The issuer reasonably believes that all purchasers are | 4873 |
purchasing for investment and not with a view to or for sale in | 4874 |
connection with a distribution of the security. Any resale of a | 4875 |
security sold in reliance on this exemption within twelve months | 4876 |
of sale shall be presumed to be with a view to distribution and | 4877 |
not for investment, except a resale to which any of the following | 4878 |
applies: | 4879 |
(a) The resale is pursuant to a registration statement | 4880 |
effective under section 1707.09 or 1707.091 of the Revised Code. | 4881 |
(b) The resale is to an accredited investor, as defined in | 4882 |
Rule 501 of Regulation D under the Securities Act of 1933. | 4883 |
(c) The resale is to an institutional investor pursuant to | 4884 |
the exemptions under division (B) or (D) of this section. | 4885 |
(3) The exemption under this division is not available to an | 4886 |
issuer that is in the development stage and that either has no | 4887 |
specific business plan or purpose or has indicated that its | 4888 |
business plan is to engage in a merger or acquisition with an | 4889 |
unidentified company or companies, or other entities or persons. | 4890 |
(4) The exemption under this division is not available to an | 4891 |
issuer, if the issuer, any of the issuer's predecessors, any | 4892 |
affiliated issuer, any of the issuer's directors, officers, | 4893 |
general partners, or beneficial owners of ten per cent or more of | 4894 |
any class of its equity securities, any of the issuer's promoters | 4895 |
presently connected with the issuer in any capacity, any | 4896 |
underwriter of the securities to be offered, or any partner, | 4897 |
director, or officer of such underwriter: | 4898 |
(a) Within the past five years, has filed a registration | 4899 |
statement that is the subject of a currently effective | 4900 |
registration stop order entered by any state securities | 4901 |
administrator or the securities and exchange commission; | 4902 |
(b) Within the past five years, has been convicted of any | 4903 |
criminal offense in connection with the offer, purchase, or sale | 4904 |
of any security, or involving fraud or deceit; | 4905 |
(c) Is currently subject to any state or federal | 4906 |
administrative enforcement order or judgment, entered within the | 4907 |
past five years, finding fraud or deceit in connection with the | 4908 |
purchase or sale of any security; | 4909 |
(d) Is currently subject to any order, judgment, or decree of | 4910 |
any court of competent jurisdiction, entered within the past five | 4911 |
years, that temporarily, preliminarily, or permanently restrains | 4912 |
or enjoins the party from engaging in or continuing to engage in | 4913 |
any conduct or practice involving fraud or deceit in connection | 4914 |
with the purchase or sale of any security. | 4915 |
(5) Division (Y)(4) of this section is inapplicable if any of | 4916 |
the following applies: | 4917 |
(a) The party subject to the disqualification is licensed or | 4918 |
registered to conduct securities business in the state in which | 4919 |
the order, judgment, or decree creating the disqualification was | 4920 |
entered against the party described in division (Y)(4) of this | 4921 |
section. | 4922 |
(b) Before the first offer is made under this exemption, the | 4923 |
state securities administrator, or the court or regulatory | 4924 |
authority that entered the order, judgment, or decree, waives the | 4925 |
disqualification. | 4926 |
(c) The issuer did not know and, in the exercise of | 4927 |
reasonable care based on reasonable investigation, could not have | 4928 |
known that a disqualification from the exemption existed under | 4929 |
division (Y)(4) of this section. | 4930 |
(6) A general announcement of the proposed offering may be | 4931 |
made by any means; however, the general announcement shall include | 4932 |
only the following information, unless additional information is | 4933 |
specifically permitted by the division by rule: | 4934 |
(a) The name, address, and telephone number of the issuer of | 4935 |
the securities; | 4936 |
(b) The name, a brief description, and price of any security | 4937 |
to be issued; | 4938 |
(c) A brief description of the business of the issuer; | 4939 |
(d) The type, number, and aggregate amount of securities | 4940 |
being offered; | 4941 |
(e) The name, address, and telephone number of the person to | 4942 |
contact for additional information; and | 4943 |
(f) A statement indicating all of the following: | 4944 |
(i) Sales will only be made to accredited investors as | 4945 |
defined in Rule 501 of Regulation D under the Securities Act of | 4946 |
1933; | 4947 |
(ii) No money or other consideration is being solicited or | 4948 |
will be accepted by way of this general announcement; | 4949 |
(iii) The securities have not been registered with or | 4950 |
approved by any state securities administrator or the securities | 4951 |
and exchange commission and are being offered and sold pursuant to | 4952 |
an exemption from registration. | 4953 |
(7) The issuer, in connection with an offer, may provide | 4954 |
information in addition to the general announcement described in | 4955 |
division (Y)(6) of this section, provided that either of the | 4956 |
following applies: | 4957 |
(a) The information is delivered through an electronic | 4958 |
database that is restricted to persons that are accredited | 4959 |
investors as defined in Rule 501 of Regulation D under the | 4960 |
Securities Act of 1933. | 4961 |
(b) The information is delivered after the issuer reasonably | 4962 |
believes that the prospective purchaser is an accredited investor | 4963 |
as defined in Rule 501 of Regulation D under the Securities Act of | 4964 |
1933. | 4965 |
(8) No telephone solicitation shall be done, unless prior to | 4966 |
placing the telephone call, the issuer reasonably believes that | 4967 |
the prospective purchaser to be solicited is an accredited | 4968 |
investor as defined in Rule 501 of Regulation D under the | 4969 |
Securities Act of 1933. | 4970 |
(9) Dissemination of the general announcement described in | 4971 |
division (Y)(6) of this section to persons that are not accredited | 4972 |
investors, as defined in Rule 501 of Regulation D under the | 4973 |
Securities Act of 1933, does not disqualify the issuer from | 4974 |
claiming an exemption under this division. | 4975 |
(10) The issuer shall file with the division notice of the | 4976 |
offering of securities within fifteen days after notice of the | 4977 |
offering is made or a general announcement is made in this state. | 4978 |
The filing shall be on forms adopted by the division and shall | 4979 |
include a copy of the general announcement, if one is made | 4980 |
regarding the proposed offering, and copies of any offering | 4981 |
materials, circulars, or prospectuses. A filing fee of one hundred | 4982 |
dollars also shall be included. | 4983 |
Sec. 1707.162. (A) No person shall act as a state retirement | 4984 |
system investment officer unless the person is licensed as a state | 4985 |
retirement system investment officer by the division of | 4986 |
securities. | 4987 |
(B) No state retirement system investment officer shall act | 4988 |
as a dealer, salesperson, investment advisor, or investment | 4989 |
advisor representative. | 4990 |
Sec. 1707.163. (A) Application for a state retirement system | 4991 |
investment officer's license shall be made in accordance with this | 4992 |
section by filing with the division of securities the information, | 4993 |
materials, and forms specified in rules adopted by the division. | 4994 |
(B)(1) The division may investigate any applicant for a | 4995 |
license and may require any additional information as it considers | 4996 |
necessary to determine the applicant's business repute and | 4997 |
qualifications to act as an investment officer. | 4998 |
(2) If the application for a state retirement system | 4999 |
investment officer's license involves investigation outside of | 5000 |
this state, the applicant may be required by the division to | 5001 |
advance sufficient funds to pay any of the actual expenses of the | 5002 |
investigation. The division shall furnish the applicant with an | 5003 |
itemized statement of the expenses the applicant is required to | 5004 |
pay. | 5005 |
(C) The division shall by rule require an applicant for a | 5006 |
state retirement system investment officer's license to pass an | 5007 |
examination designated by the division or achieve a specified | 5008 |
professional designation unless the applicant meets both of the | 5009 |
following requirements: | 5010 |
(1) Acts as a state retirement system investment officer on | 5011 |
the effective date of this section; | 5012 |
(2) Has experience or equivalent education acceptable to the | 5013 |
division. | 5014 |
(D) If the division finds that the applicant is of good | 5015 |
business repute, appears to be qualified to act as a state | 5016 |
retirement system investment officer, and has complied with this | 5017 |
chapter and rules adopted under this chapter by the division, the | 5018 |
division, on payment of the fees prescribed by division (B) of | 5019 |
section 1707.17 of the Revised Code, shall issue to the applicant | 5020 |
a license authorizing the applicant to act as a state retirement | 5021 |
system investment officer. | 5022 |
Sec. 1707.17. (A)(1) The license of every dealer in and | 5023 |
salesperson of securities shall expire on the thirty-first day of | 5024 |
December of each year, and may be renewed upon the filing with the | 5025 |
division of securities of an application for renewal, and the | 5026 |
payment of the fee prescribed in this section. The division shall | 5027 |
give notice, without unreasonable delay, of its action on any | 5028 |
application for renewal of a dealer's or salesperson's license. | 5029 |
(2) The license of every investment adviser and investment | 5030 |
adviser representative licensed under section 1707.141 or 1707.161 | 5031 |
of the Revised Code shall expire on the thirty-first day of | 5032 |
December of each year. The licenses may be renewed upon the filing | 5033 |
with the division of an application for renewal, and the payment | 5034 |
of the fee prescribed in division (B) of this section. The | 5035 |
division shall give notice, without unreasonable delay, of its | 5036 |
action on any application for renewal. | 5037 |
(3) An investment adviser required to make a notice filing | 5038 |
under division (B) of section 1707.141 of the Revised Code | 5039 |
annually shall file with the division the notice filing and the | 5040 |
fee prescribed in division (B) of this section, no later than the | 5041 |
thirty-first day of December of each year. | 5042 |
(4) The license of every state retirement system investment | 5043 |
officer licensed under section 1707.163 of the Revised Code shall | 5044 |
expire on the thirtieth day of June of each year. The licenses may | 5045 |
be renewed on the filing with the division of an application for | 5046 |
renewal, and the payment of the fee prescribed in division (B) of | 5047 |
this section. The division shall give notice, without unreasonable | 5048 |
delay, of its action on any application for renewal. | 5049 |
(B)(1) The fee for each dealer's license, and for each annual | 5050 |
renewal thereof, shall be
one
hundred
dollars.
| 5051 |
5052 | |
5053 |
(2) The fee for each salesperson's license, and for each | 5054 |
annual
renewal thereof, shall be fifty dollars. | 5055 |
5056 | |
5057 |
(3) The fee for each investment adviser's license, and for | 5058 |
each annual renewal thereof, shall be fifty dollars. | 5059 |
(4) The fee for each investment adviser notice filing | 5060 |
required by division (B) of section 1707.141 of the Revised Code | 5061 |
shall be fifty dollars. | 5062 |
(5) The fee for each investment adviser representative's | 5063 |
license, and for each annual renewal thereof, shall be thirty-five | 5064 |
dollars. | 5065 |
(6) The fee for each state retirement system investment | 5066 |
officer's license, and for each annual renewal thereof, shall be | 5067 |
fifty dollars. | 5068 |
(C) A dealer's, salesperson's, investment adviser's, | 5069 |
investment adviser representative's, or state retirement system | 5070 |
investment officer's license may be issued at any time for the | 5071 |
remainder of the calendar year. In that event, the annual fee | 5072 |
shall not be reduced. | 5073 |
Sec. 1707.19. (A) An original license, or a renewal thereof, | 5074 |
applied for by a dealer or salesperson of securities, or by an | 5075 |
investment adviser | 5076 |
state retirement system investment officer, may be refused, and | 5077 |
any such license granted may be suspended and, after notice and | 5078 |
hearing in accordance with Chapter 119. of the Revised Code, may | 5079 |
be revoked, by the division of securities, if the division | 5080 |
determines that the applicant or the licensed dealer, salesperson, | 5081 |
investment adviser, | 5082 |
retirement system investment officer: | 5083 |
(1) Is not of good business repute; | 5084 |
(2) Is conducting an illegitimate or fraudulent business; | 5085 |
(3) Is, in the case of a dealer or investment adviser, | 5086 |
insolvent; | 5087 |
(4) Has knowingly violated any provision of sections 1707.01 | 5088 |
to 1707.45 of the Revised Code, or any regulation or order made | 5089 |
thereunder; | 5090 |
(5) Has knowingly made a false statement of a material fact | 5091 |
or an omission of a material fact in an application for a license, | 5092 |
in a description or application that has been filed, or in any | 5093 |
statement made to the division under such sections; | 5094 |
(6) Has refused to comply with any lawful order or | 5095 |
requirement of the division under section 1707.23 of the Revised | 5096 |
Code; | 5097 |
(7) Has been guilty of any fraudulent act in connection with | 5098 |
the sale of any securities or in connection with acting as an | 5099 |
investment adviser | 5100 |
retirement system investment officer; | 5101 |
(8) Conducts business in purchasing or selling securities at | 5102 |
such variations from the existing market as in the light of all | 5103 |
the circumstances are unconscionable; | 5104 |
(9) Conducts business in violation of such rules and | 5105 |
regulations as the division prescribes for the protection of | 5106 |
investors, clients, or prospective clients; | 5107 |
(10)(a) Has failed to furnish to the division any information | 5108 |
with respect to the purchases or sales of securities within this | 5109 |
state that may be reasonably requested by the division as | 5110 |
pertinent to the protection of investors in this state. | 5111 |
(b) Has failed to furnish to the division any information | 5112 |
with respect to acting as an investment adviser | 5113 |
adviser representative, or state retirement system investment | 5114 |
officer within this state that may be reasonably requested by the | 5115 |
division. | 5116 |
(B) For the protection of investors the division may | 5117 |
prescribe reasonable rules defining fraudulent, evasive, | 5118 |
deceptive, or grossly unfair practices or devices in the purchase | 5119 |
or sale of securities. | 5120 |
(C) For the protection of investors, clients, or prospective | 5121 |
clients, the division may prescribe reasonable rules regarding the | 5122 |
acts and practices of an investment adviser or an investment | 5123 |
adviser representative. | 5124 |
(D) Pending any investigation or hearing provided for in | 5125 |
sections 1707.01 to 1707.45 of the Revised Code, the division may | 5126 |
order the suspension of any dealer's, salesperson's, investment | 5127 |
adviser's, | 5128 |
retirement system investment officer's license by notifying the | 5129 |
party concerned of such suspension and the cause for it. If it is | 5130 |
a salesperson whose license is suspended, the division shall also | 5131 |
notify the dealer employing the salesperson. If it is an | 5132 |
investment adviser representative whose license is suspended, the | 5133 |
division also shall notify the investment adviser with whom the | 5134 |
investment adviser representative is employed or associated. If it | 5135 |
is a state retirement system investment officer whose license is | 5136 |
suspended, the division shall also notify the state retirement | 5137 |
system with whom the state retirement system investment officer is | 5138 |
employed. | 5139 |
(E)(1) The suspension or revocation of the dealer's license | 5140 |
suspends the licenses of all the dealer's salespersons. | 5141 |
(2) The suspension or revocation of the investment adviser's | 5142 |
license suspends the licenses of all the investment adviser's | 5143 |
investment adviser representatives. The suspension or revocation | 5144 |
of an investment adviser's registration under section 203 of the | 5145 |
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the | 5146 |
licenses of all the investment adviser's investment adviser | 5147 |
representatives. | 5148 |
(F) It is sufficient cause for refusal, revocation, or | 5149 |
suspension of the license in case of a partnership, partnership | 5150 |
association, corporation, or unincorporated association if any | 5151 |
general partner of the partnership, manager of the partnership | 5152 |
association, or executive officer of the corporation or | 5153 |
unincorporated association is not of good business repute or has | 5154 |
been guilty of any act or omission which would be cause for | 5155 |
refusing or revoking the license of an individual dealer, | 5156 |
salesperson, investment adviser, or investment adviser | 5157 |
representative. | 5158 |
Sec. 1707.20. (A) The division of securities may adopt, | 5159 |
amend, and rescind such rules, forms, and orders as are necessary | 5160 |
to carry out sections 1707.01 to 1707.45 of the Revised Code, | 5161 |
including rules and forms governing registration statements, | 5162 |
applications, and reports, and defining any terms, whether or not | 5163 |
used in sections 1707.01 to 1707.45 of the Revised Code, insofar | 5164 |
as the definitions are not inconsistent with these sections. For | 5165 |
the purpose of rules and forms, the division may classify | 5166 |
securities, persons, and matters within its jurisdiction, and | 5167 |
prescribe different requirements for different classes. | 5168 |
(B) No rule, form, or order may be made, amended, or | 5169 |
rescinded unless the division finds that the action is necessary | 5170 |
or appropriate in the public interest or for the protection of | 5171 |
investors, clients, | 5172 |
systems and consistent with the purposes fairly intended by the | 5173 |
policy and provisions of sections 1707.01 to 1707.45 of the | 5174 |
Revised Code. In prescribing rules and forms and in otherwise | 5175 |
administering sections 1707.01 to 1707.45 of the Revised Code, the | 5176 |
division may cooperate with the securities administrators of the | 5177 |
other states and the securities and exchange commission with a | 5178 |
view of effectuating the policy of this section to achieve maximum | 5179 |
uniformity in the form and content of registration statements, | 5180 |
applications, reports, and overall securities regulation wherever | 5181 |
practicable. | 5182 |
(C) The division may by rule or order prescribe: | 5183 |
(1) The form and content of financial statements required | 5184 |
under sections 1707.01 to 1707.45 of the Revised Code; | 5185 |
(2) The circumstances under which consolidated financial | 5186 |
statements shall be filed; | 5187 |
(3) Whether any required financial statements shall be | 5188 |
certified by independent or certified public accountants. All | 5189 |
financial statements shall be prepared in accordance with | 5190 |
generally accepted accounting practices. | 5191 |
(D) All rules and forms of the division shall be published; | 5192 |
and in addition to fulfilling the requirements of Chapter 119. of | 5193 |
the Revised Code, the division shall prescribe, and shall publish | 5194 |
and make available its rules regarding the sale of securities, the | 5195 |
administration of sections 1707.01 to 1707.45 of the Revised Code, | 5196 |
and the procedure and practice before the division. | 5197 |
(E) No provision of sections 1707.01 to 1707.45 of the | 5198 |
Revised Code imposing any liability applies to any act done or | 5199 |
omitted in good faith in conformity with any rule, form, or order | 5200 |
of the division of securities, notwithstanding that the rule, | 5201 |
form, or order may later be amended or rescinded or be determined | 5202 |
by judicial or other authority to be invalid for any reason, | 5203 |
except that the issuance of an order granting effectiveness to a | 5204 |
registration under section 1707.09 or 1707.091 of the Revised Code | 5205 |
for the purposes of this division shall not be deemed an order | 5206 |
other than as the establishment of the fact of registration. | 5207 |
Sec. 1707.22. Whenever a dealer's, salesperson's, investment | 5208 |
adviser's, | 5209 |
retirement system investment officer's license has been refused, | 5210 |
suspended, or revoked, or a renewal thereof has been denied, by | 5211 |
the division of securities, or whenever the division has refused | 5212 |
to qualify securities or has suspended or revoked the registration | 5213 |
of any particular security by description or by qualification, or | 5214 |
the right to buy, sell, or deal in any particular security whether | 5215 |
it is registered or qualified or exempt, or whether the | 5216 |
transactions in it are registered or exempt, the aggrieved party | 5217 |
may appeal in accordance with Chapter 119. of the Revised Code. | 5218 |
An order sustaining the refusal of the division to grant or | 5219 |
renew a
dealer's,
salesperson's, investment adviser's, | 5220 |
investment adviser representative's, or state retirement system | 5221 |
investment officer's license or to grant qualification of | 5222 |
securities, or an order sustaining the division in suspending or | 5223 |
revoking a dealer's,
salesperson's, investment adviser's, | 5224 |
investment adviser representative's, or state retirement system | 5225 |
investment officer's license, the registration of any particular | 5226 |
security by description or by qualification, or the right to buy, | 5227 |
sell, or deal in any particular security, shall not bar, after ten | 5228 |
days from the order, a new registration by description, or a new | 5229 |
application of the plaintiff for such a license or qualification | 5230 |
or for a withdrawal of a revocation or suspension; nor shall an | 5231 |
order in favor of the plaintiff prevent the division, after proper | 5232 |
notice and hearing, from thereafter revoking or suspending such | 5233 |
license, registration, or right to buy, sell, or deal in a | 5234 |
particular security, for any proper cause which may, after the | 5235 |
order, accrue or be discovered. | 5236 |
Sec. 1707.23. Whenever it appears to the division of | 5237 |
securities, from its files, upon complaint, or otherwise, that any | 5238 |
person has engaged in, is engaged in, or is about to engage in any | 5239 |
practice declared to be illegal or prohibited by this chapter or | 5240 |
rules adopted under this chapter by the division, or defined as | 5241 |
fraudulent in this chapter or rules adopted under this chapter by | 5242 |
the division, or any other deceptive scheme or practice in | 5243 |
connection with the sale of securities, or acting as a dealer, a | 5244 |
salesperson, an investment
adviser | 5245 |
representative, or state retirement system investment officer or | 5246 |
when the division believes it to be in the best interests of the | 5247 |
public and necessary for the protection of investors, the division | 5248 |
may do any of the following: | 5249 |
(A) Require any person to file with it, on such forms as it | 5250 |
prescribes, an original or additional statement or report in | 5251 |
writing, under oath or otherwise, as to any facts or circumstances | 5252 |
concerning the issuance, sale, or offer for sale of securities | 5253 |
within this state by the person, as to the person's acts or | 5254 |
practices as a dealer, a salesperson, an investment adviser | 5255 |
investment adviser representative, or state retirement system | 5256 |
investment officer within this state, and as to other information | 5257 |
as it deems material or relevant thereto; | 5258 |
(B) Examine any investment adviser, investment adviser | 5259 |
representative, state retirement system investment officer, or any | 5260 |
seller, dealer, salesperson, or issuer of any securities, and any | 5261 |
of their agents, employees, partners, officers, directors, | 5262 |
members, or shareholders, wherever located, under oath; and | 5263 |
examine and produce records, books, documents, accounts, and | 5264 |
papers as the division deems material or relevant to the inquiry; | 5265 |
(C) Require the attendance of witnesses, and the production | 5266 |
of books, records, and papers, as are required either by the | 5267 |
division or by any party to a hearing before the division, and for | 5268 |
that purpose issue a subpoena for any witness, or a subpoena duces | 5269 |
tecum to compel the production of any books, records, or papers. | 5270 |
The subpoena shall be served by personal service or by certified | 5271 |
mail, return receipt requested. If the subpoena is returned | 5272 |
because of inability to deliver, or if no return is received | 5273 |
within thirty days of the date of mailing, the subpoena may be | 5274 |
served by ordinary mail. If no return of ordinary mail is received | 5275 |
within thirty days after the date of mailing, service shall be | 5276 |
deemed to have been made. If the subpoena is returned because of | 5277 |
inability to deliver, the division may designate a person or | 5278 |
persons to effect either personal or residence service upon the | 5279 |
witness. The person designated to effect personal or residence | 5280 |
service under this division may be the sheriff of the county in | 5281 |
which the witness resides or may be found or any other duly | 5282 |
designated person. The fees and mileage of the person serving the | 5283 |
subpoena shall be the same as those allowed by the courts of | 5284 |
common pleas in criminal cases, and shall be paid from the funds | 5285 |
of the division. Fees and mileage for the witness shall be the | 5286 |
same as those allowed for witnesses by the courts of common pleas | 5287 |
in criminal cases, and shall be paid from the funds of the | 5288 |
division upon request of the witness following the hearing. | 5289 |
(D) | 5290 |
5291 | |
5292 | |
5293 | |
5294 | |
5295 | |
5296 |
| 5297 |
1707.44 of the Revised Code or rules adopted under those sections | 5298 |
by the division by laying before the prosecuting attorney of the | 5299 |
proper county any evidence of criminality which comes to its | 5300 |
knowledge; and in the event of the neglect or refusal of the | 5301 |
prosecuting attorney to prosecute such violations, or at the | 5302 |
request of the prosecuting attorney, the division shall submit the | 5303 |
evidence to the attorney general, who may proceed in the | 5304 |
prosecution with all the rights, privileges, and powers conferred | 5305 |
by law on prosecuting attorneys, including the power to appear | 5306 |
before grand juries and to interrogate witnesses before such grand | 5307 |
juries. | 5308 |
| 5309 |
division copies of prospectuses, circulars, or advertisements | 5310 |
respecting securities that they publish or generally distribute, | 5311 |
or require any investment advisers immediately to furnish to the | 5312 |
division copies of brochures, advertisements, publications, | 5313 |
analyses, reports, or other writings that they publish or | 5314 |
distribute; | 5315 |
| 5316 |
sale, notices of intention to sell, in respect to all securities | 5317 |
which are not exempt under section 1707.02 of the Revised Code, or | 5318 |
which are sold in transactions not exempt under section 1707.03 or | 5319 |
1707.04 of the Revised Code; | 5320 |
| 5321 |
all persons affected an order requiring the person or persons to | 5322 |
cease and desist from the acts or practices appearing to the | 5323 |
division to constitute violations of this chapter or rules adopted | 5324 |
under this chapter by the division. The order shall state | 5325 |
specifically the section or sections of this chapter or the rule | 5326 |
or rules adopted under this chapter by the division that appear to | 5327 |
the division to have been violated and the facts constituting the | 5328 |
violation. If after the issuance of the order it appears to the | 5329 |
division that any person or persons affected by the order have | 5330 |
engaged in any act or practice from which the person or persons | 5331 |
shall have been required, by the order, to cease and desist, the | 5332 |
director of commerce may apply to the court of common pleas of any | 5333 |
county for, and upon proof of the validity of the order of the | 5334 |
division, the delivery of the order to the person or persons | 5335 |
affected, and of the illegality and the continuation of the acts | 5336 |
or practices that are the subject of the order, the court may | 5337 |
grant an injunction implementing the order of the division. | 5338 |
| 5339 |
regarding subpoenas and subpoenas duces tecum at the request of | 5340 |
the securities administrator of another state, if it appears to | 5341 |
the division that the activities for which the information is | 5342 |
sought would violate this chapter if the activities had occurred | 5343 |
in this state. | 5344 |
| 5345 |
and concurrent with any other remedy provided in this chapter, and | 5346 |
the exercise of one remedy does not preclude or require the | 5347 |
exercise of any other remedy. | 5348 |
Sec. 1707.25. In case any person fails to file any statement | 5349 |
or report required by sections 1707.01 to 1707.45 of the Revised | 5350 |
Code, to obey any subpoena the issuance of which is provided for | 5351 |
in those sections, or to produce books, records, or papers, give | 5352 |
testimony, or answer questions, as required by those sections, the | 5353 |
director of commerce may apply to a court of common pleas of any | 5354 |
county for, and upon proof of such failure the court may grant, an | 5355 |
injunction
restraining the
acting as an investment adviser | 5356 |
investment adviser representative, or state retirement system | 5357 |
investment officer, or the issuance, sale, or offer for sale of | 5358 |
any securities by the person or by its agents, employees, | 5359 |
partners, officers, directors, or shareholders, until such failure | 5360 |
has been remedied and other relief as the facts may warrant has | 5361 |
been had. Such injunctive relief is available in addition to the | 5362 |
other remedies provided for in sections 1707.01 to 1707.45 of the | 5363 |
Revised Code. | 5364 |
Where the person refusing to comply with such order of court | 5365 |
is an issuer of securities, the court may enjoin the sale by any | 5366 |
dealer of any securities of the issuer, and the division of | 5367 |
securities may revoke the qualification of the securities of the | 5368 |
issuer, or suspend or revoke the sale of any securities of the | 5369 |
issuer which have been registered by description, and such | 5370 |
securities shall not thereafter be sold by any dealer until the | 5371 |
order of the court or of the division is withdrawn. | 5372 |
Sec. 1707.261. (A) If a court of common pleas grants an | 5373 |
injunction pursuant to section 1707.26 of the Revised Code, after | 5374 |
consultation with the attorney general the director of commerce | 5375 |
may request that court to order the defendant or defendants that | 5376 |
are subject to the injunction to make restitution or rescission to | 5377 |
any purchaser or holder of securities damaged by the defendant's | 5378 |
or defendants' violation of any provision of sections 1707.01 to | 5379 |
1707.45 of the Revised Code. | 5380 |
(B) If the court of common pleas is satisfied with the | 5381 |
sufficiency of the director's request for restitution or | 5382 |
rescission under division (A) of this section and with the | 5383 |
sufficiency of the proof of a substantial violation of any | 5384 |
provision of sections 1707.01 to 1707.45 of the Revised Code, or | 5385 |
of the use of any act, practice, or transaction declared to be | 5386 |
illegal or prohibited or defined as fraudulent by those sections | 5387 |
or rules adopted under those sections by the division of | 5388 |
securities, to the material prejudice of a purchaser or holder of | 5389 |
securities, the court may order the defendant or defendants | 5390 |
subject to the injunction to make restitution or rescission to any | 5391 |
purchaser or holder of securities damaged by the defendant's or | 5392 |
defendants' violation of sections 1707.01 to 1707.45 of the | 5393 |
Revised Code. | 5394 |
(C) A court order granting restitution or rescission based | 5395 |
upon a request made pursuant to division (A) of this section shall | 5396 |
meet the requirements of division (B) of this section and may not | 5397 |
be based solely upon a final order issued by the division of | 5398 |
securities pursuant to Chapter 119. of the Revised Code or upon an | 5399 |
action to enforce a final order issued by the division pursuant to | 5400 |
that chapter. Notwithstanding the foregoing provision, a request | 5401 |
for restitution or rescission pursuant to division (A) of this | 5402 |
section may concern the same acts, practices, or transactions that | 5403 |
were, or may later be, the subject of a division of securities | 5404 |
action for a violation of any provision of sections 1707.01 to | 5405 |
1707.45 of the Revised Code. If a request for restitution or | 5406 |
rescission pursuant to division (A) of this section concerns the | 5407 |
same acts, practices, or transactions that were the subject of a | 5408 |
final order issued by the division of securities pursuant to | 5409 |
Chapter 119. of the Revised Code, the court shall review the | 5410 |
request in accordance with division (B) of this section, and the | 5411 |
standard of review in section 119.12 of the Revised Code shall not | 5412 |
apply to the request. | 5413 |
(D) No purchaser or holder of securities who is entitled to | 5414 |
restitution or rescission under this section shall recover, | 5415 |
pursuant to this section or any other proceeding, a total amount | 5416 |
in excess of the person's purchase price for the securities sold | 5417 |
in violation of sections 1707.01 to 1707.45 of the Revised Code. | 5418 |
(E)(1) If a court of common pleas grants an injunction | 5419 |
pursuant to section 1707.26 of the Revised Code against any state | 5420 |
retirement system investment officer, after consultation with the | 5421 |
attorney general, the director of commerce may request that court | 5422 |
to order the state retirement system investment officer or | 5423 |
officers that are subject to the injunction to make restitution to | 5424 |
the state retirement system damaged by the state retirement system | 5425 |
investment officer's or officers' violation of any provision of | 5426 |
sections 1707.01 to 1707.45 of the Revised Code. | 5427 |
(2) If the court of common pleas is satisfied with the | 5428 |
sufficiency of the director's request for restitution under | 5429 |
division (E)(1) of this section and with the sufficiency of the | 5430 |
proof of a substantial violation of any provision of sections | 5431 |
1707.01 to 1707.45 of the Revised Code, or of the use of any act, | 5432 |
practice, or transaction declared to be illegal or prohibited or | 5433 |
defined as fraudulent by those sections or rules adopted under | 5434 |
those sections by the division of securities, to the material | 5435 |
prejudice of a state retirement system, the court may order the | 5436 |
state retirement system investment officer or officers subject to | 5437 |
the injunction to make restitution to the state retirement system | 5438 |
damaged by the state retirement system investment officer's or | 5439 |
officers' violation of sections 1707.01 to 1707.45 of the Revised | 5440 |
Code. A request for restitution pursuant to division (E)(1) of | 5441 |
this section may concern the same acts, practices, or transactions | 5442 |
that were, or may later be, the subject of a division of | 5443 |
securities action for a violation of any provision of section | 5444 |
1707.01 to 1707.45 of the Revised Code. | 5445 |
Sec. 1707.39. When any securities have been sold without | 5446 |
compliance with sections 1707.01 to 1707.45 of the Revised Code, | 5447 |
or any former law in force at the time of such sale, any | 5448 |
interested person may apply in writing to the division of | 5449 |
securities for the qualification of such securities under such | 5450 |
sections. If it appears to the division that no person has been | 5451 |
defrauded, prejudiced, or damaged by such noncompliance or sale | 5452 |
and that no person will be defrauded, prejudiced, or damaged by | 5453 |
such qualification, the division may permit such securities to be | 5454 |
so qualified upon the payment of a fee of one hundred dollars plus | 5455 |
a fee of one-fifth of one per cent of the aggregate price at which | 5456 |
the securities have been sold in this state, which fee shall in no | 5457 |
case be less than one hundred dollars nor more than two thousand | 5458 |
dollars. In addition, the division may require the applicant to | 5459 |
advance sufficient funds to pay the actual expenses of an | 5460 |
examination or investigation by the division, whether to be | 5461 |
conducted in this state or outside this state. An itemized | 5462 |
statement of such expenses shall be furnished to the applicant. | 5463 |
Such qualification shall estop the division from proceeding | 5464 |
under division | 5465 |
against anyone who has violated division (C)(1) of section 1707.44 | 5466 |
of the Revised Code for acts within the scope of the application, | 5467 |
or from proceeding with administrative action pursuant to section | 5468 |
1707.13 of the Revised Code. | 5469 |
Sec. 1707.431. For purposes of this section, the following | 5470 |
persons shall not be deemed to have effected, participated in, or | 5471 |
aided the seller in any way in making, a sale or contract of sale | 5472 |
in violation of sections 1707.01 to 1707.45 of the Revised Code: | 5473 |
(A) Any attorney, accountant, or engineer whose performance | 5474 |
is incidental to the practice of the person's profession; | 5475 |
(B) Any person, other than an investment adviser | 5476 |
investment adviser representative, or state retirement system | 5477 |
investment officer, who brings any issuer together with any | 5478 |
potential investor, without receiving, directly or indirectly, a | 5479 |
commission, fee, or other remuneration based on the sale of any | 5480 |
securities by the issuer to the investor. Remuneration received by | 5481 |
the person solely for the purpose of offsetting the reasonable | 5482 |
out-of-pocket costs incurred by the person shall not be deemed a | 5483 |
commission, fee, or other remuneration. | 5484 |
Any person claiming exemption under this division for a | 5485 |
publicly advertised meeting shall file a notice with the division | 5486 |
of securities indicating an intent to cause or hold such a meeting | 5487 |
at least twenty-one days prior to the meeting. The division may, | 5488 |
upon receipt of such notice, issue an order denying the | 5489 |
availability of an exemption under this division not more than | 5490 |
fourteen days after receipt of the notice based on a finding that | 5491 |
the applicant is not entitled to the exemption. Notwithstanding | 5492 |
the notice described in this section, a failure to file the notice | 5493 |
does not create a presumption that a person was participating in | 5494 |
or aiding in the making of a sale or contract of sale in violation | 5495 |
of this chapter. | 5496 |
(C) Any person whom the division exempts from this provision | 5497 |
by rule. | 5498 |
Sec. 1707.44. (A)(1) No person shall engage in any act or | 5499 |
practice that violates division (A), (B), or (C) of section | 5500 |
1707.14 of the Revised Code, and no salesperson shall sell | 5501 |
securities in this state without being licensed pursuant to | 5502 |
section 1707.16 of the Revised Code. | 5503 |
(2) No person shall engage in any act or practice that | 5504 |
violates division (A) of section 1707.141 or section 1707.161 of | 5505 |
the Revised Code. | 5506 |
(3) No person shall engage in any act or practice that | 5507 |
violates section 1707.162 of the Revised Code. | 5508 |
(B) No person shall knowingly make or cause to be made any | 5509 |
false representation concerning a material and relevant fact, in | 5510 |
any oral statement or in any prospectus, circular, description, | 5511 |
application, or written statement, for any of the following | 5512 |
purposes: | 5513 |
(1) Registering securities or transactions, or exempting | 5514 |
securities or transactions from registration, under this chapter; | 5515 |
(2) Securing the qualification of any securities under this | 5516 |
chapter; | 5517 |
(3) Procuring the licensing of any dealer, salesperson, | 5518 |
investment adviser, | 5519 |
retirement system investment officer under this chapter; | 5520 |
(4) Selling any securities in this state; | 5521 |
(5) Advising for compensation, as to the value of securities | 5522 |
or as to the advisability of investing in, purchasing, or selling | 5523 |
securities; | 5524 |
(6) Submitting a notice filing to the division under division | 5525 |
(X) of section 1707.03 or section 1707.092 or 1707.141 of the | 5526 |
Revised Code. | 5527 |
(C) No person shall knowingly sell, cause to be sold, offer | 5528 |
for sale, or cause to be offered for sale, any security which | 5529 |
comes under any of the following descriptions: | 5530 |
(1) Is not exempt under section 1707.02 of the Revised Code, | 5531 |
nor the subject matter of one of the transactions exempted in | 5532 |
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not | 5533 |
been registered by coordination or qualification, and is not the | 5534 |
subject matter of a transaction that has been registered by | 5535 |
description; | 5536 |
(2) The prescribed fees for registering by description, by | 5537 |
coordination, or by qualification have not been paid in respect to | 5538 |
such security; | 5539 |
(3) The person has been notified by the division, or has | 5540 |
knowledge of the notice, that the right to buy, sell, or deal in | 5541 |
such security has been suspended or revoked, or that the | 5542 |
registration by description, by coordination, or by qualification | 5543 |
under which it may be sold has been suspended or revoked; | 5544 |
(4) The offer or sale is accompanied by a statement that the | 5545 |
security offered or sold has been or is to be in any manner | 5546 |
indorsed by the division. | 5547 |
(D) No person who is an officer, director, or trustee of, or | 5548 |
a dealer for, any issuer, and who knows such issuer to be | 5549 |
insolvent in that the liabilities of the issuer exceed its assets, | 5550 |
shall sell any securities of or for any such issuer, without | 5551 |
disclosing the fact of the insolvency to the purchaser. | 5552 |
(E) No person with intent to aid in the sale of any | 5553 |
securities on behalf of the issuer, shall knowingly make any | 5554 |
representation not authorized by such issuer or at material | 5555 |
variance with statements and documents filed with the division by | 5556 |
such issuer. | 5557 |
(F) No person, with intent to deceive, shall sell, cause to | 5558 |
be sold, offer for sale, or cause to be offered for sale, any | 5559 |
securities of an insolvent issuer, with knowledge that such issuer | 5560 |
is insolvent in that the liabilities of the issuer exceed its | 5561 |
assets, taken at their fair market value. | 5562 |
(G) No person in purchasing or selling securities shall | 5563 |
knowingly engage in any act or practice that is, in this chapter, | 5564 |
declared illegal, defined as fraudulent, or prohibited. | 5565 |
(H) No licensed dealer shall refuse to buy from, sell to, or | 5566 |
trade with any person because the person appears on a blacklist | 5567 |
issued by, or is being boycotted by, any foreign corporate or | 5568 |
governmental entity, nor sell any securities of or for any issuer | 5569 |
who is known in relation to the issuance or sale of the securities | 5570 |
to have engaged in such practices. | 5571 |
(I) No dealer in securities, knowing that the dealer's | 5572 |
liabilities exceed the reasonable value of the dealer's assets, | 5573 |
shall accept money or securities, except in payment of or as | 5574 |
security for an existing debt, from a customer who is ignorant of | 5575 |
the dealer's insolvency, and thereby cause the customer to lose | 5576 |
any part of the customer's securities or the value of those | 5577 |
securities, by doing either of the following without the | 5578 |
customer's consent: | 5579 |
(1) Pledging, selling, or otherwise disposing of such | 5580 |
securities, when the dealer has no lien on or any special property | 5581 |
in such securities; | 5582 |
(2) Pledging such securities for more than the amount due, or | 5583 |
otherwise disposing of such securities for the dealer's own | 5584 |
benefit, when the dealer has a lien or indebtedness on such | 5585 |
securities. | 5586 |
It is an affirmative defense to a charge under this division | 5587 |
that, at the time the securities involved were pledged, sold, or | 5588 |
disposed of, the dealer had in the dealer's possession or control, | 5589 |
and available for delivery, securities of the same kinds and in | 5590 |
amounts sufficient to satisfy all customers entitled to the | 5591 |
securities, upon demand and tender of any amount due on the | 5592 |
securities. | 5593 |
(J) No person, with purpose to deceive, shall make, issue, | 5594 |
publish, or cause to be made, issued, or published any statement | 5595 |
or advertisement as to the value of securities, or as to alleged | 5596 |
facts affecting the value of securities, or as to the financial | 5597 |
condition of any issuer of securities, when the person knows that | 5598 |
such statement or advertisement is false in any material respect. | 5599 |
(K) No person, with purpose to deceive, shall make, record, | 5600 |
or publish or cause to be made, recorded, or published, a report | 5601 |
of any transaction in securities which is false in any material | 5602 |
respect. | 5603 |
(L) No dealer shall engage in any act that violates the | 5604 |
provisions of section 15(c) or 15(g) of the "Securities Exchange | 5605 |
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule | 5606 |
or regulation promulgated by the securities and exchange | 5607 |
commission thereunder. If, subsequent to October 11, 1994, | 5608 |
additional amendments to section 15(c) or 15(g) are adopted, or | 5609 |
additional rules or regulations are promulgated pursuant to such | 5610 |
sections, the division of securities shall, by rule, adopt the | 5611 |
amendments, rules, or regulations, unless the division finds that | 5612 |
the amendments, rules, or regulations are not necessary for the | 5613 |
protection of investors or in the public interest. | 5614 |
(M)(1) No investment adviser or investment adviser | 5615 |
representative shall do any of the following: | 5616 |
(a) Employ any device, scheme, or artifice to defraud any | 5617 |
person; | 5618 |
(b) Engage in any act, practice, or course of business that | 5619 |
operates or would operate as a fraud or deceit upon any person; | 5620 |
(c) In acting as principal for the investment adviser's or | 5621 |
investment adviser representative's own account, knowingly sell | 5622 |
any security to or purchase any security from a client, or in | 5623 |
acting as salesperson for a person other than such client, | 5624 |
knowingly effect any sale or purchase of any security for the | 5625 |
account of such client, without disclosing to the client in | 5626 |
writing before the completion of the transaction the capacity in | 5627 |
which the investment adviser or investment adviser representative | 5628 |
is acting and obtaining the consent of the client to the | 5629 |
transaction. Division (M)(1)(c) of this section does not apply to | 5630 |
any investment adviser registered with the securities and exchange | 5631 |
commission under section 203 of the "Investment Advisers Act of | 5632 |
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a | 5633 |
licensed dealer or salesperson if the licensed dealer or | 5634 |
salesperson is not acting as an investment adviser or investment | 5635 |
adviser representative in relation to the transaction. | 5636 |
(d) Engage in any act, practice, or course of business that | 5637 |
is fraudulent, deceptive, or manipulative. The division of | 5638 |
securities may adopt rules reasonably designed to prevent such | 5639 |
acts, practices, or courses of business that are fraudulent, | 5640 |
deceptive, or manipulative. | 5641 |
(2) No investment adviser or investment adviser | 5642 |
representative licensed or required to be licensed under this | 5643 |
chapter shall take or have custody of any securities or funds of | 5644 |
any person, except as provided in rules adopted by the division. | 5645 |
(3) In the solicitation of clients or prospective clients, no | 5646 |
person shall make any untrue statement of a material fact or omit | 5647 |
to state a material fact necessary in order to make the statements | 5648 |
made not misleading in light of the circumstances under which the | 5649 |
statements were made. | 5650 |
(N) No person knowingly shall influence, coerce, manipulate, | 5651 |
or mislead any person engaged in the preparation, compilation, | 5652 |
review, or audit of financial statements to be used in the | 5653 |
purchase or sale of securities for the purpose of rendering the | 5654 |
financial statements materially misleading. | 5655 |
(O) No state retirement system investment officer shall do | 5656 |
any of the following: | 5657 |
(1) Employ any device, scheme, or artifice to defraud any | 5658 |
state retirement system; | 5659 |
(2) Engage in any act, practice, or course of business that | 5660 |
operates or would operate as a fraud or deceit on any state | 5661 |
retirement system; | 5662 |
(3) Engage in any act, practice, or course of business that | 5663 |
is fraudulent, deceptive, or manipulative. The division of | 5664 |
securities may adopt rules reasonably designed to prevent such | 5665 |
acts, practices, or courses of business as are fraudulent, | 5666 |
deceptive, or manipulative; | 5667 |
(4) Knowingly fail to comply with any policy adopted | 5668 |
regarding the officer established pursuant to section 145.094, | 5669 |
742.104, 3307.043, 3309.043, or 5505.066 of the Revised Code. | 5670 |
Sec. 1707.46. The principal executive officer of the | 5671 |
division of securities shall be the commissioner of securities, | 5672 |
who shall be appointed by the director of commerce. The | 5673 |
commissioner of securities shall enforce all the laws and | 5674 |
administrative rules enacted or adopted to regulate the sale of | 5675 |
bonds, stocks, and other securities and to prevent fraud in such | 5676 |
sales. The commissioner also shall enforce all the laws and | 5677 |
administrative rules enacted or adopted to regulate investment | 5678 |
advisers | 5679 |
retirement system investment officers and to prevent fraud in | 5680 |
their acts, practices, and transactions. | 5681 |
The commissioner shall be paid at a rate not less than pay | 5682 |
range 47 set out in schedule E-2 of section 124.152 of the Revised | 5683 |
Code, to be paid as other operating expenses of the division. | 5684 |
Sec. 3105.80. As used in this section and sections 3105.81 | 5685 |
to 3105.90 of the Revised Code: | 5686 |
(A) "Alternate payee" means a party in an action for divorce, | 5687 |
legal separation, annulment, or dissolution of marriage who is to | 5688 |
receive one or more payments from a benefit or lump sum payment | 5689 |
under an order issued under section 3105.171 or 3105.65 of the | 5690 |
Revised Code that is in compliance with sections 3105.81 to | 5691 |
3105.90 of the Revised Code. | 5692 |
(B) "Benefit" means a periodic payment under a pension, | 5693 |
annuity, allowance, or other type of benefit, other than a | 5694 |
survivor benefit, that has been or may be granted to a participant | 5695 |
under sections 742.01 to 742.61 or Chapter 145., 3307., 3309., or | 5696 |
5505. of the Revised Code or any payment that is to be made under | 5697 |
a contract a participant has entered into for the purposes of an | 5698 |
alternative retirement plan. "Benefit" also includes all amounts | 5699 |
received or to be received under a plan of payment elected under | 5700 |
division (B)(3) of section 145.46, division (B) of section | 5701 |
3307.60, or division (B)(3) of section 3309.46 of the Revised | 5702 |
Code. | 5703 |
(C) "Lump sum payment" means a payment of accumulated | 5704 |
contributions standing to a participant's credit under sections | 5705 |
742.01 to 742.61 or Chapter 145., 3307., 3309., or 5505. of the | 5706 |
Revised Code or pursuant to a contract a participant has entered | 5707 |
into for the purposes of an alternative retirement plan and any | 5708 |
other payment made or that may be made to a participant under | 5709 |
those sections or chapters on withdrawal of a participant's | 5710 |
contributions. "Lump sum payment" includes a lump sum payment | 5711 |
under section 145.384, 742.26, 3307.352, or 3309.344 of the | 5712 |
Revised Code. | 5713 |
(D) "Participant" means a member, contributor, retirant, or | 5714 |
disability benefit recipient who is or will be entitled to a | 5715 |
benefit or lump sum payment under sections 742.01 to 742.61 or | 5716 |
Chapter 145., 3307., 3309., or 5505. of the Revised Code or an | 5717 |
5718 | |
an alternative retirement plan under Chapter 3305. of the Revised | 5719 |
Code. | 5720 |
(E) "Personal history record" has the same meaning as in | 5721 |
5722 | |
5505.04 of the Revised Code. | 5723 |
(F) "Public retirement program" means the public employees | 5724 |
retirement system, Ohio police and fire pension fund, school | 5725 |
employees retirement system, state teachers retirement system, | 5726 |
state highway patrol retirement system, or an entity providing an | 5727 |
alternative retirement plan under Chapter 3305. of the Revised | 5728 |
Code. | 5729 |
Sec. 3305.01. As used in this chapter: | 5730 |
(A) "Public institution of higher education" means a state | 5731 |
university as defined in section 3345.011 of the Revised Code, the | 5732 |
medical college of Ohio at Toledo, the northeastern Ohio | 5733 |
universities college of medicine, or a university branch, | 5734 |
technical college, state community college, community college, or | 5735 |
municipal university established or operating under Chapter 3345., | 5736 |
3349., 3354., 3355., 3357., or 3358. of the Revised Code. | 5737 |
(B) "State retirement system" means the public employees | 5738 |
retirement system created under Chapter 145. of the Revised Code, | 5739 |
the state teachers retirement system created under Chapter 3307. | 5740 |
of the Revised Code, or the school employees retirement system | 5741 |
created under Chapter 3309. of the Revised Code. | 5742 |
(C) " | 5743 |
person employed as a full-time employee | 5744 |
5745 | |
5746 | |
5747 |
| 5748 |
5749 |
| 5750 |
5751 | |
5752 | |
5753 |
| 5754 |
5755 | |
5756 | |
5757 | |
5758 | |
education. | 5759 |
In all cases of doubt, the board of trustees of the public | 5760 |
institution of higher education shall determine whether any person | 5761 |
is an | 5762 |
this chapter, and the board's decision shall be final. | 5763 |
(D) "Electing employee" means any | 5764 |
eligible employee who elects, pursuant to section 3305.05 or | 5765 |
3305.051 of the Revised Code, to participate in an alternative | 5766 |
retirement plan provided pursuant to this chapter or an eligible | 5767 |
employee who is required to participate in an alternative | 5768 |
retirement plan
pursuant to division
| 5769 |
or division (F) of section 3305.051 of the Revised Code. | 5770 |
(E) "Compensation," for purposes of an electing employee, has | 5771 |
the same meaning as the applicable one of the following: | 5772 |
(1) If the electing employee would be subject to Chapter 145. | 5773 |
of the Revised Code had the employee not made an election pursuant | 5774 |
to section 3305.05 or 3305.051 of the Revised Code, "earnable | 5775 |
salary" as defined in division (R) of section 145.01 of the | 5776 |
Revised Code; | 5777 |
(2) If the electing employee would be subject to Chapter | 5778 |
3307. of the Revised Code had the employee not made an election | 5779 |
pursuant to section 3305.05 or 3305.051 of the Revised Code, | 5780 |
"compensation" as defined in division (L) of section 3307.01 of | 5781 |
the Revised Code; | 5782 |
(3) If the electing employee would be subject to Chapter | 5783 |
3309. of the Revised Code had the employee not made an election | 5784 |
pursuant to section 3305.05 or 3305.051 of the Revised Code, | 5785 |
"compensation" as defined in division (V) of section 3309.01 of | 5786 |
the Revised Code. | 5787 |
(F) "Provider" means an entity designated under section | 5788 |
3305.03 of the Revised Code as a provider of investment options | 5789 |
for an alternative retirement plan. | 5790 |
Sec. 3305.02. An alternative retirement program is hereby | 5791 |
established in accordance with this chapter for the purpose of | 5792 |
providing to | 5793 |
opportunity of participating in an alternative retirement plan as | 5794 |
an alternative to participating in a state retirement system. The | 5795 |
employer is the sponsor of each alternative retirement plan | 5796 |
offered under this chapter. | 5797 |
Each alternative retirement plan offered under this program | 5798 |
5799 | |
shall be a defined contribution plan qualified under section 401 | 5800 |
(a) of the Internal Revenue Code that provides retirement and | 5801 |
death benefits through investment options. The options shall be | 5802 |
offered to electing employees pursuant to group or individual | 5803 |
contracts, and certificates issued under group contracts, and may | 5804 |
include life insurance, annuities, variable annuities, regulated | 5805 |
investment trusts, pooled investment funds, or other forms of | 5806 |
investment, at the option of each electing employee. | 5807 |
Notwithstanding this chapter, any retirement plan established | 5808 |
by a public institution of higher education prior to March 31, | 5809 |
1997, as an alternative to participating in any state retirement | 5810 |
system may continue in effect and be modified without regard to | 5811 |
this chapter for all employees at the public institution eligible | 5812 |
to participate in the plan. | 5813 |
Sec. 3305.03. (A) The department of insurance shall | 5814 |
designate three or more entities to provide investment options | 5815 |
under alternative retirement plans established by public | 5816 |
institutions of higher education in accordance with this chapter. | 5817 |
An entity shall be designated a provider under this section if the | 5818 |
entity meets both of the following requirements: | 5819 |
(1) It is authorized to conduct business in this state with | 5820 |
regard to the investment options to be offered under an | 5821 |
alternative retirement plan; | 5822 |
(2) It provides the same or similar investment options to be | 5823 |
offered under alternative retirement plans, as group or individual | 5824 |
contracts, or a combination thereof, in at least ten other states. | 5825 |
(B) In designating a provider under this section, the | 5826 |
department of insurance shall consider all of the following: | 5827 |
(1) The experience of the provider in providing investment | 5828 |
options under alternative retirement programs in other states; | 5829 |
(2) The potential effectiveness of the provider in recruiting | 5830 |
5831 | |
contracts and in retaining those contracts; | 5832 |
(3) The nature and extent of the rights and benefits to be | 5833 |
provided under the investment options; | 5834 |
(4) The relationship between the rights and benefits under | 5835 |
the investment options and the amount of the contributions made | 5836 |
under those options; | 5837 |
(5) The suitability of the rights and benefits under the | 5838 |
investment options to the needs
and interests of | 5839 |
5840 |
(6) The capability of the provider to provide the rights and | 5841 |
benefits under the investment options; | 5842 |
(7) Any other matters it considers relevant. | 5843 |
(C) The department of insurance shall periodically review | 5844 |
each provider designated under division (A) of this section and | 5845 |
the investment options being offered to ensure that the | 5846 |
requirements and purposes of this chapter are being met. If the | 5847 |
department finds that the provider is not in compliance with any | 5848 |
requirement of this chapter or the provider is not satisfactorily | 5849 |
meeting the purposes of this chapter, the department may rescind | 5850 |
the provider's designation. | 5851 |
(D) Notwithstanding sections 125.01 to 125.11 of the Revised | 5852 |
Code, designation of a provider or the execution of any contract | 5853 |
under this chapter is not subject to competitive bidding under | 5854 |
those sections. | 5855 |
Sec. 3305.05. (A) As used in this section and section | 5856 |
3305.051 of the Revised Code, "academic or administrative | 5857 |
employee" means any full-time employee not receiving any benefit, | 5858 |
allowance, or other payment granted on the employee's account from | 5859 |
a state retirement system who, before the effective date of this | 5860 |
section, met one of the following requirements: | 5861 |
(1) The employee was a member of the faculty of a public | 5862 |
institution of higher education. | 5863 |
(2) The employee was a member of the administrative staff of | 5864 |
a public institution of higher education serving in a position in | 5865 |
the unclassified civil service pursuant to section 124.11 of the | 5866 |
Revised Code. | 5867 |
(3) If section 124.11 of the Revised Code did not apply to | 5868 |
the public institution of higher education, the employee was a | 5869 |
member of the administrative staff of a public institution of | 5870 |
higher education serving in a position comparable to a position in | 5871 |
the unclassified civil service. | 5872 |
In all cases of doubt, the board of trustees of the public | 5873 |
institution of higher education shall determine whether any person | 5874 |
is an academic or administrative employee for purposes of this | 5875 |
chapter, and the board's decision shall be final. | 5876 |
(B)(1) Each person who, on the effective date of this | 5877 |
section, is an eligible employee of a public institution of higher | 5878 |
education and has accrued less than five years of service credit | 5879 |
in a state retirement system may, not later than one hundred | 5880 |
twenty days after the effective date of this section, make an | 5881 |
election to participate in an alternative retirement plan | 5882 |
available at the employing public institution, unless, prior to | 5883 |
the effective date of this section, the person had an opportunity | 5884 |
pursuant to former section 3305.05 of the Revised Code to make | 5885 |
such an election as an academic or administrative employee of that | 5886 |
public institution of higher education. | 5887 |
(2) An eligible employee whose employment with a public | 5888 |
institution of higher education commences on or after the | 5889 |
effective date of this section may, not later than one hundred | 5890 |
twenty days after the starting date of the employment, make an | 5891 |
election to participate in an alternative retirement plan | 5892 |
available at the employing public institution. | 5893 |
(3) An eligible employee who, on or after the effective date | 5894 |
of this section, terminates employment at one public institution | 5895 |
of higher education and subsequently is employed by another public | 5896 |
institution of higher education in a position for which an | 5897 |
alternative retirement plan is available may, not later than one | 5898 |
hundred twenty days after the starting date of the employment, | 5899 |
elect to participate in an alternative retirement plan available | 5900 |
at that public institution. | 5901 |
(C)(1) An eligible employee who makes an election under | 5902 |
division (B) of this section shall submit the election in writing | 5903 |
to the designated officer of the employee's employing public | 5904 |
institution of higher education. Once submitted, the election is | 5905 |
irrevocable while the eligible employee continues to be employed | 5906 |
by the public institution of higher education. Not later than ten | 5907 |
days after the election becomes irrevocable, the officer shall | 5908 |
file a certified copy of the election with the state retirement | 5909 |
system to which, apart from the election, the employee's | 5910 |
employment would be subject. | 5911 |
Each public institution of higher education that employs a | 5912 |
person eligible to make an election under division (B) of this | 5913 |
section shall notify in writing, within ten days of the person's | 5914 |
employment, the state retirement system that applies to that | 5915 |
employment in the manner specified by that state retirement | 5916 |
system. The notice shall include the person's name and address. | 5917 |
(2) Elections made under division (B) of this section take | 5918 |
effect as follows: | 5919 |
(a) An election under division (B)(1) of this section is | 5920 |
effective as of the date on which the employee's election to | 5921 |
participate in the alternative retirement plan becomes | 5922 |
irrevocable. | 5923 |
(b) An election under division (B)(2) or (3) of this section | 5924 |
is effective as of the electing employee's starting date of | 5925 |
employment. | 5926 |
(3) An eligible employee's election under division (B) of | 5927 |
this section applies to the employee's employment in all positions | 5928 |
at that public institution, unless the employee terminates | 5929 |
employment at the public institution and does not return to | 5930 |
employment in any position at that public institution prior to one | 5931 |
year after the date of termination. | 5932 |
(4) An eligible employee who makes an election under division | 5933 |
(B) of this section is forever barred from claiming or purchasing | 5934 |
service credit under any state retirement system for the period of | 5935 |
employment while the election is in effect. | 5936 |
(D)(1) An eligible employee who fails to make an election | 5937 |
under division (B) of this section within the one-hundred-twenty | 5938 |
day election period shall be deemed to have elected to participate | 5939 |
in the state retirement system that applies to the employee's | 5940 |
employment. | 5941 |
(2) An eligible employee who fails to make an election under | 5942 |
division (B) of this section shall not be permitted to make an | 5943 |
election for employment in any other position at the public | 5944 |
institution of higher education while employed at that public | 5945 |
institution, unless the employee terminates employment at the | 5946 |
public institution and does not return to employment in any | 5947 |
position at the public institution prior to one year after the | 5948 |
date of termination. | 5949 |
| 5950 |
elections made prior to the effective date of this amendment. | 5951 |
(B) A person whose employment as an academic or | 5952 |
administrative employee of a public institution of higher | 5953 |
education | 5954 |
board of
trustees of the public
institution | 5955 |
alternative retirement plan may, not later than one hundred twenty | 5956 |
days after the starting date of employment, make an election to | 5957 |
participate in an alternative retirement plan available at the | 5958 |
public institution. If no election to participate in an | 5959 |
alternative retirement plan is made by the end of one hundred | 5960 |
twenty days after the person's starting date of employment, the | 5961 |
person shall be deemed to have elected participation in the state | 5962 |
retirement system that applies to the person's employment. | 5963 |
An election made under this division or
division | 5964 |
this section shall be irrevocable while the electing employee is | 5965 |
employed by that public institution. | 5966 |
A person who makes an election to participate in an | 5967 |
alternative retirement plan shall be forever barred from claiming | 5968 |
or purchasing service credit under any state retirement system for | 5969 |
the period of that person's employment during which the election | 5970 |
is in effect. If a person terminates employment at one public | 5971 |
institution of higher education and subsequently is employed by | 5972 |
another public institution of higher education in a position for | 5973 |
which an alternative retirement plan is available under this | 5974 |
chapter, the person may make another election under this division. | 5975 |
Each public institution of higher education employing a person | 5976 |
eligible to make an election under this division shall notify, | 5977 |
within ten days of the person's employment, the state retirement | 5978 |
system that applies to that person's employment in the manner | 5979 |
specified by that state retirement system, which notice shall | 5980 |
include the new employee's name and address. | 5981 |
| 5982 |
date on which the board of trustees of a public institution of | 5983 |
higher education adopts an alternative retirement plan for that | 5984 |
public institution, each eligible academic or administrative | 5985 |
employee of the public institution may make an election to | 5986 |
participate in an alternative retirement plan available at the | 5987 |
public institution. If a person to whom this division applies | 5988 |
fails to make an election, the person shall be deemed to have | 5989 |
elected continued participation in the state retirement system in | 5990 |
which the person is a member. | 5991 |
(2)(a) A member of the public employees retirement system or | 5992 |
school employees retirement system who is an academic or | 5993 |
administrative employee of the public institution is eligible to | 5994 |
make an election if, on April 1, 1998, the member had less than | 5995 |
five years of service credit in the retirement system in which the | 5996 |
member is making contributions and the public institution of | 5997 |
higher education at which the member is employed adopted an | 5998 |
alternative retirement plan after December 8, 1998, but before | 5999 |
April 1, 1999. | 6000 |
(b) A member of the state teachers retirement system who is | 6001 |
an academic or administrative employee of a public institution | 6002 |
that establishes an alternative retirement plan is eligible to | 6003 |
make an election if the member has less than five years of service | 6004 |
credit in the state teachers retirement system on the thirtieth | 6005 |
day of June immediately preceding the date the plan is adopted. | 6006 |
| 6007 |
(D) An
election under division | 6008 |
shall be in
writing | 6009 |
designated officer of the employee's employing public institution | 6010 |
of higher education. Not later than ten days after the election | 6011 |
becomes irrevocable, the officer shall file a certified copy of | 6012 |
the election with the state retirement system to which, apart from | 6013 |
this election, the employee's employment would be subject. | 6014 |
| 6015 |
section shall be effective as of the electing employee's starting | 6016 |
date of employment. | 6017 |
(2) In the case of a member of the public employees | 6018 |
retirement system or school employees retirement system, an | 6019 |
election made under
division | 6020 |
effective as of April 1, 1998. In the case of a member of the | 6021 |
state teachers retirement system, an election shall be effective | 6022 |
as of the date
described in division
| 6023 |
| 6024 |
6025 | |
individual's employment in all positions at a public institution | 6026 |
of higher education, unless the individual terminates employment | 6027 |
at the public institution and does not return to employment in any | 6028 |
position at that public institution prior to one year after the | 6029 |
date of termination. | 6030 |
If an individual is eligible to make an election under | 6031 |
division
| 6032 |
public institution and does not make the election, the individual | 6033 |
shall not be permitted to make an election for employment in any | 6034 |
other position at the public institution while employed at that | 6035 |
public institution, unless the individual terminates employment at | 6036 |
the public institution and does not return to employment in any | 6037 |
position at the public institution prior to one year after the | 6038 |
date of termination. | 6039 |
| 6040 |
6041 | |
6042 |
| 6043 |
6044 | |
6045 | |
6046 |
| 6047 |
6048 |
| 6049 |
6050 |
| 6051 |
| 6052 |
6053 | |
6054 |
| 6055 |
6056 | |
6057 |
| 6058 |
covers the position held by an employee of a public institution of | 6059 |
higher
education who makes an
election under division | 6060 |
(3) of section 3305.05 or division (B) of section 3305.051 of the | 6061 |
Revised Code to participate in the public institution's | 6062 |
alternative retirement plan shall, not later than thirty days | 6063 |
after the date on which the certified copy of the employee's | 6064 |
election is filed with the state retirement system under that | 6065 |
section, do one of the following: | 6066 |
(1) If the employee was participating in a defined benefit | 6067 |
plan as provided in sections 145.201 to 145.79, sections 3307.50 | 6068 |
to 3307.79, or sections 3309.18 to 3309.76 of the Revised Code, | 6069 |
pay to the provider of the investment option selected by the | 6070 |
employee any employee and employer contributions made to the | 6071 |
retirement system by or on behalf of that employee for the period | 6072 |
beginning on the employee's starting day of employment and ending | 6073 |
on the day before the day on which contributions commence under an | 6074 |
alternative retirement plan, less the amount due the retirement | 6075 |
system pursuant to division (D) of section 3305.06 of the Revised | 6076 |
Code for that period. | 6077 |
(2) If the employee was participating in a defined | 6078 |
contribution plan as provided in section 145.81, 3307.81, or | 6079 |
3309.81 of the Revised Code, pay to the provider of the investment | 6080 |
option selected by the employee the amount on deposit in the | 6081 |
employee's individual account for the period beginning on the | 6082 |
employee's starting day of employment and ending on the day before | 6083 |
the day on which contributions commence under an alternative | 6084 |
retirement plan. | 6085 |
(B) The state retirement system that covers the position held | 6086 |
by an employee of a public institution of higher education who | 6087 |
makes an election under division (B)(1) of section 3305.05 or | 6088 |
division (C) of section 3305.051 of the Revised Code to | 6089 |
participate in the public institution's alternative retirement | 6090 |
plan shall, not later than thirty days after the date on which a | 6091 |
certified copy of the employee's election is filed with the state | 6092 |
retirement system under that section, do one of the following: | 6093 |
(1) If the employee was participating in a defined benefit | 6094 |
plan as provided in sections 145.201 to 145.79, sections 3307.50 | 6095 |
to 3307.79, or sections 3309.18 to 3309.70 of the Revised Code, | 6096 |
pay to the provider of the investment option selected by the | 6097 |
employee any employee and employer contributions made to the | 6098 |
retirement system by or on behalf of that employee for any period | 6099 |
commencing after the date on which the election becomes | 6100 |
irrevocable under division (C)(1) of section 3305.05 of the | 6101 |
Revised Code or the applicable date described in division | 6102 |
6103 | |
Code and ending on the day before the day on which contributions | 6104 |
commence under an alternative retirement plan, less the amount due | 6105 |
the retirement system pursuant to division (D) of section 3305.06 | 6106 |
of the Revised Code for that period. | 6107 |
(2) If the employee was participating in a defined | 6108 |
contribution plan as provided in section 145.81, 3307.81, or | 6109 |
3309.81 of the Revised Code, pay to the provider of the investment | 6110 |
option selected by the employee the amount on deposit in the | 6111 |
employee's individual account for the period commencing after the | 6112 |
date on which the election becomes irrevocable under division | 6113 |
(C)(1) of section 3305.05 of the Revised Code and ending on the | 6114 |
day before the day on which contributions commence under an | 6115 |
alternative retirement plan. | 6116 |
Sec. 3305.053. The board of trustees of a public institution | 6117 |
of higher education shall permit an employee who makes an election | 6118 |
under section 3305.05 or 3305.051 of the Revised Code to do all of | 6119 |
the following: | 6120 |
(A) Select, from among the providers that have entered into a | 6121 |
contract with the public institution of higher education under | 6122 |
section 3305.04 of the Revised Code, the provider of an investment | 6123 |
option for that employee; | 6124 |
(B) Except as permitted under division (C) of this section, | 6125 |
contract with only one provider in any plan year; | 6126 |
(C) Change the provider selected under division (A) of this | 6127 |
section at the following times: | 6128 |
(1) Once during the first payroll period in any plan year; | 6129 |
(2) Any time the provider that the employee selected ceases, | 6130 |
under division (C) of section 3305.03 of the Revised Code, to be | 6131 |
designated. | 6132 |
(D) If under division (C) of this section an employee changes | 6133 |
providers, the provider shall transfer to the new provider the | 6134 |
employee's account balance either in whole or in part, as directed | 6135 |
by the employee, except that the provider is not required to | 6136 |
immediately transfer any part of the account invested at the | 6137 |
employee's election in a fixed annuity account if the contract | 6138 |
under which the investment was made permits the provider to make | 6139 |
such a transfer over a period of time not exceeding ten years and | 6140 |
the contract was filed with and approved by the department of | 6141 |
insurance pursuant to section 3911.011 of the Revised Code. | 6142 |
Sec. 3305.06. (A) Each electing employee shall contribute an | 6143 |
amount, which shall be a certain percentage of the employee's | 6144 |
compensation, to the provider of the investment option the | 6145 |
employee has selected. This percentage shall be the percentage the | 6146 |
electing employee would have otherwise been required to contribute | 6147 |
to the state retirement system that applies to the employee's | 6148 |
position, except that the percentage shall not be less than three | 6149 |
per cent. Employee contributions under this division may be | 6150 |
treated as employer contributions in accordance with Internal | 6151 |
Revenue Code 414(h). | 6152 |
(B) Each public institution of higher education employing an | 6153 |
electing employee shall contribute | 6154 |
6155 | |
of the investment option the employee has selected. This | 6156 |
percentage shall be | 6157 |
6158 | |
institution of higher education would otherwise contribute on | 6159 |
behalf of that employee to the state retirement system that would | 6160 |
otherwise cover that employee's position, less the percentage | 6161 |
contributed by the public institution of higher education under | 6162 |
division (D) of this section. | 6163 |
(C)(1) In no event shall the amount contributed by the | 6164 |
electing employee pursuant to division (A) of this section and on | 6165 |
the electing employee's behalf pursuant to division (B) of this | 6166 |
section be less than the amount necessary to qualify the plan as a | 6167 |
state retirement system pursuant to Internal Revenue Code | 6168 |
3121(B)(7) and the regulations adopted thereunder. | 6169 |
(2) The full amount of the electing employee's contribution | 6170 |
under division (A) of this section and the full amount of the | 6171 |
employer's contribution made on behalf of that employee under | 6172 |
division (B) of this section shall be paid to the appropriate | 6173 |
provider for application to the electing employee's investment | 6174 |
option. | 6175 |
(D) Each public institution of higher education employing an | 6176 |
electing employee shall contribute on behalf of that employee to | 6177 |
the state retirement system that otherwise applies to the electing | 6178 |
employee's position a percentage of the electing employee's | 6179 |
compensation to mitigate any negative financial impact of the | 6180 |
alternative retirement program on the state retirement system. The | 6181 |
percentage shall be six per cent, except that the percentage may | 6182 |
be adjusted by the Ohio retirement study council to reflect the | 6183 |
determinations made by actuarial studies conducted under section | 6184 |
171.07 of the Revised Code. Any adjustment shall become effective | 6185 |
on the first day of the second month following submission of the | 6186 |
actuarial study to the board of regents under section 171.07 of | 6187 |
the Revised Code. | 6188 |
Contributions on behalf of an electing employee shall | 6189 |
continue in accordance with this division until the occurrence of | 6190 |
the following: | 6191 |
(1) If the electing employee would be subject to Chapter 145. | 6192 |
of the Revised Code had the employee not made an election pursuant | 6193 |
to section 3305.05 or 3305.051 of the Revised Code, until the | 6194 |
unfunded actuarial accrued liability for all benefits, except | 6195 |
health care benefits provided under section 145.325 or 145.58 of | 6196 |
the Revised Code and benefit increases provided after March 31, | 6197 |
1997, is fully amortized, as determined by the annual actuarial | 6198 |
valuation prepared under section 145.22 of the Revised Code; | 6199 |
(2) If the electing employee would be subject to Chapter | 6200 |
3307. of the Revised Code had the employee not made an election | 6201 |
pursuant to section 3305.05 or 3305.051 of the Revised Code, until | 6202 |
the unfunded actuarial accrued liability for all benefits, except | 6203 |
health care benefits provided under section 3307.39 or 3307.61 of | 6204 |
the Revised Code and benefit increases provided after March 31, | 6205 |
1997, is fully amortized, as determined by the annual actuarial | 6206 |
valuation prepared under section 3307.51 of the Revised Code; | 6207 |
(3) If the electing employee would be subject to Chapter | 6208 |
3309. of the Revised Code had the employee not made an election | 6209 |
pursuant to section 3305.05 or 3305.051 of the Revised Code, until | 6210 |
the unfunded actuarial accrued liability for all benefits, except | 6211 |
health care benefits provided under section 3309.375 or 3309.69 of | 6212 |
the Revised Code and benefit increases provided after March 31, | 6213 |
1997, is fully amortized, as determined by the annual actuarial | 6214 |
valuation prepared under section 3309.21 of the Revised Code. | 6215 |
Sec. 3305.07. (A) Neither the state nor a public institution | 6216 |
of higher education shall be a party to any contract purchased in | 6217 |
whole or in part with contributions to an alternative retirement | 6218 |
plan made under section 3305.06 of the Revised Code. No | 6219 |
retirement, death, or other benefits shall be payable by the state | 6220 |
or by any public institution of higher education under any | 6221 |
alternative retirement plan elected pursuant to this chapter. | 6222 |
(B)(1) Except as provided under division (B)(2) of this | 6223 |
section and sections 3305.08 and 3305.09 of the Revised Code, | 6224 |
benefits shall be paid to an electing employee or the employee's | 6225 |
beneficiaries in accordance with the alternative retirement plan | 6226 |
adopted by the public institution of higher education at which the | 6227 |
employee is employed. | 6228 |
(2) A benefit or payment shall not be paid under an | 6229 |
investment option prior to the time an electing employee dies, | 6230 |
terminates employment with the public institution of higher | 6231 |
education, or, if provided under the alternative retirement plan | 6232 |
or investment option, becomes disabled, except that the provider | 6233 |
of the investment option shall transfer the employee's account | 6234 |
balance to another
provider as provided under | 6235 |
section | 6236 |
Sec. 3307.01. As used in this chapter: | 6237 |
(A) "Employer" means the board of education, school district, | 6238 |
governing authority of any community school established under | 6239 |
Chapter 3314. of the Revised Code, college, university, | 6240 |
institution, or other agency within the state by which a teacher | 6241 |
is employed and paid. | 6242 |
(B) "Teacher" means all of the following: | 6243 |
(1) Any person paid from public funds and employed in the | 6244 |
public schools of the state under any type of contract described | 6245 |
in section 3319.08 of the Revised Code in a position for which the | 6246 |
person is required to have a license issued pursuant to sections | 6247 |
3319.22 to 3319.31 of the Revised Code; | 6248 |
(2) Any person employed as a teacher by a community school | 6249 |
pursuant to Chapter 3314. of the Revised Code; | 6250 |
(3) Any person having a license issued pursuant to sections | 6251 |
3319.22 to 3319.31 of the Revised Code and employed in a public | 6252 |
school in this state in an educational position, as determined by | 6253 |
the state board of education, under programs provided for by | 6254 |
federal acts or regulations and financed in whole or in part from | 6255 |
federal funds, but for which no licensure requirements for the | 6256 |
position can be made under the provisions of such federal acts or | 6257 |
regulations; | 6258 |
(4) Any other teacher or faculty member employed in any | 6259 |
school, college, university, institution, or other agency wholly | 6260 |
controlled and managed, and supported in whole or in part, by the | 6261 |
state or any political subdivision thereof, including Central | 6262 |
state university, Cleveland state university, the university of | 6263 |
Toledo, and the medical college of Ohio at Toledo; | 6264 |
(5) The educational employees of the department of education, | 6265 |
as determined by the state superintendent of public instruction. | 6266 |
In all cases of doubt, the state teachers retirement board | 6267 |
shall determine whether any person is a teacher, and its decision | 6268 |
shall be final. | 6269 |
"Teacher" does not include any | 6270 |
eligible employee of a public institution of higher education, as | 6271 |
defined
in section 3305.01 of the Revised
Code, who | 6272 |
elects to participate in an alternative retirement plan | 6273 |
established under Chapter 3305. of the Revised Code. | 6274 |
(C) "Member" means any person included in the membership of | 6275 |
the state teachers retirement system, which shall consist of all | 6276 |
teachers and contributors as defined in divisions (B) and (D) of | 6277 |
this section and all disability benefit recipients, as defined in | 6278 |
section 3307.50 of the Revised Code. However, for purposes of this | 6279 |
chapter, the following persons shall not be considered members: | 6280 |
(1) A student, intern, or resident who is not a member while | 6281 |
employed part-time by a school, college, or university at which | 6282 |
the student, intern, or resident is regularly attending classes; | 6283 |
(2) A person denied membership pursuant to section 3307.24 of | 6284 |
the Revised Code; | 6285 |
(3) An other system retirant, as defined in section 3307.35 | 6286 |
of the Revised Code, or a superannuate; | 6287 |
(4) An individual employed in a program established pursuant | 6288 |
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29 | 6289 |
U.S.C.A. 1501. | 6290 |
(D) "Contributor" means any person who has an account in the | 6291 |
teachers' savings fund or defined contribution fund. | 6292 |
(E) "Beneficiary" means any person eligible to receive, or in | 6293 |
receipt of, a retirement allowance or other benefit provided by | 6294 |
this chapter. | 6295 |
(F) "Year" means the year beginning the first day of July and | 6296 |
ending with the thirtieth day of June next following, except that | 6297 |
for the purpose of determining final average salary under the plan | 6298 |
described in sections 3307.50 to 3307.79 of the Revised Code, | 6299 |
"year" may mean the contract year. | 6300 |
(G) "Local district pension system" means any school teachers | 6301 |
pension fund created in any school district of the state in | 6302 |
accordance with the laws of the state prior to September 1, 1920. | 6303 |
(H) "Employer contribution" means the amount paid by an | 6304 |
employer, as determined by the employer rate, including the normal | 6305 |
and deficiency rates, contributions, and funds wherever used in | 6306 |
this chapter. | 6307 |
(I) "Five years of service credit" means employment covered | 6308 |
under this chapter and employment covered under a former | 6309 |
retirement plan operated, recognized, or endorsed by a college, | 6310 |
institute, university, or political subdivision of this state | 6311 |
prior to coverage under this chapter. | 6312 |
(J) "Actuary" means the actuarial consultant to the state | 6313 |
teachers retirement board, who shall be either of the following: | 6314 |
(1) A member of the American academy of actuaries; | 6315 |
(2) A firm, partnership, or corporation of which at least one | 6316 |
person is a member of the American academy of actuaries. | 6317 |
(K) "Fiduciary" means a person who does any of the following: | 6318 |
(1) Exercises any discretionary authority or control with | 6319 |
respect to the management of the system, or with respect to the | 6320 |
management or disposition of its assets; | 6321 |
(2) Renders investment advice for a fee, direct or indirect, | 6322 |
with respect to money or property of the system; | 6323 |
(3) Has any discretionary authority or responsibility in the | 6324 |
administration of the system. | 6325 |
(L)(1) Except as provided in this division, "compensation" | 6326 |
means all salary, wages, and other earnings paid to a teacher by | 6327 |
reason of the teacher's employment, including compensation paid | 6328 |
pursuant to a supplemental contract. The salary, wages, and other | 6329 |
earnings shall be determined prior to determination of the amount | 6330 |
required to be contributed to the teachers' savings fund or | 6331 |
defined contribution fund under section 3307.26 of the Revised | 6332 |
Code and without regard to whether any of the salary, wages, or | 6333 |
other earnings are treated as deferred income for federal income | 6334 |
tax purposes. | 6335 |
(2) Compensation does not include any of the following: | 6336 |
(a) Payments for accrued but unused sick leave or personal | 6337 |
leave, including payments made under a plan established pursuant | 6338 |
to section 124.39 of the Revised Code or any other plan | 6339 |
established by the employer; | 6340 |
(b) Payments made for accrued but unused vacation leave, | 6341 |
including payments made pursuant to section 124.13 of the Revised | 6342 |
Code or a plan established by the employer; | 6343 |
(c) Payments made for vacation pay covering concurrent | 6344 |
periods for which other salary, compensation, or benefits under | 6345 |
this chapter are paid; | 6346 |
(d) Amounts paid by the employer to provide life insurance, | 6347 |
sickness, accident, endowment, health, medical, hospital, dental, | 6348 |
or surgical coverage, or other insurance for the teacher or the | 6349 |
teacher's family, or amounts paid by the employer to the teacher | 6350 |
in lieu of providing the insurance; | 6351 |
(e) Incidental benefits, including lodging, food, laundry, | 6352 |
parking, or services furnished by the employer, use of the | 6353 |
employer's property or equipment, and reimbursement for | 6354 |
job-related expenses authorized by the employer, including moving | 6355 |
and travel expenses and expenses related to professional | 6356 |
development; | 6357 |
(f) Payments made by the employer in exchange for a member's | 6358 |
waiver of a right to receive any payment, amount, or benefit | 6359 |
described in division (L)(2) of this section; | 6360 |
(g) Payments by the employer for services not actually | 6361 |
rendered; | 6362 |
(h) Any amount paid by the employer as a retroactive increase | 6363 |
in salary, wages, or other earnings, unless the increase is one of | 6364 |
the following: | 6365 |
(i) A retroactive increase paid to a member employed by a | 6366 |
school district board of education in a position that requires a | 6367 |
license designated for teaching and not designated for being an | 6368 |
administrator issued under section 3319.22 of the Revised Code | 6369 |
that is paid in accordance with uniform criteria applicable to all | 6370 |
members employed by the board in positions requiring the licenses; | 6371 |
(ii) A retroactive increase paid to a member employed by a | 6372 |
school district board of education in a position that requires a | 6373 |
license designated for being an administrator issued under section | 6374 |
3319.22 of the Revised Code that is paid in accordance with | 6375 |
uniform criteria applicable to all members employed by the board | 6376 |
in positions requiring the licenses; | 6377 |
(iii) A retroactive increase paid to a member employed by a | 6378 |
school district board of education as a superintendent that is | 6379 |
also paid as described in division (L)(2)(h)(i) of this section; | 6380 |
(iv) A retroactive increase paid to a member employed by an | 6381 |
employer other than a school district board of education in | 6382 |
accordance with uniform criteria applicable to all members | 6383 |
employed by the employer. | 6384 |
(i) Payments made to or on behalf of a teacher that are in | 6385 |
excess of the annual compensation that may be taken into account | 6386 |
by the retirement system under division (a)(17) of section 401 of | 6387 |
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. | 6388 |
401(a)(17), as amended. For a teacher who first establishes | 6389 |
membership before July 1, 1996, the annual compensation that may | 6390 |
be taken into account by the retirement system shall be determined | 6391 |
under division (d)(3) of section 13212 of the "Omnibus Budget | 6392 |
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472. | 6393 |
(j) Payments made under division (B), (C), or (E) of section | 6394 |
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill | 6395 |
No. 3 of the 119th general assembly, Section 3 of Amended | 6396 |
Substitute Senate Bill No. 164 of the 124th general assembly, or | 6397 |
Amended Substitute House Bill No. 405 of the 124th general | 6398 |
assembly; | 6399 |
(k) Anything of value received by the teacher that is based | 6400 |
on or attributable to retirement or an agreement to retire. | 6401 |
(3) The retirement board shall determine by rule both of the | 6402 |
following: | 6403 |
(a) Whether particular forms of earnings are included in any | 6404 |
of the categories enumerated in this division; | 6405 |
(b) Whether any form of earnings not enumerated in this | 6406 |
division is to be included in compensation. | 6407 |
Decisions of the board made under this division shall be | 6408 |
final. | 6409 |
(M) "Superannuate" means both of the following: | 6410 |
(1) A former teacher receiving from the system a retirement | 6411 |
allowance under section 3307.58 or 3307.59 of the Revised Code; | 6412 |
(2) A former teacher receiving a benefit from the system | 6413 |
under a plan established under section 3307.81 of the Revised | 6414 |
Code, except that "superannuate" does not include a former teacher | 6415 |
who is receiving a benefit based on disability under a plan | 6416 |
established under section 3307.81 of the Revised Code. | 6417 |
For purposes of sections 3307.35 and 3307.353 of the Revised | 6418 |
Code, "superannuate" also means a former teacher receiving from | 6419 |
the system a combined service retirement benefit paid in | 6420 |
accordance with section 3307.57 of the Revised Code, regardless of | 6421 |
which retirement system is paying the benefit. | 6422 |
Sec. 3307.03. A state teachers retirement system is hereby | 6423 |
established for the teachers of the public schools of the state | 6424 |
which includes the several funds created and placed under the | 6425 |
management of a state teachers retirement board for the payment of | 6426 |
retirement allowances and other benefits under Chapter 3307. of | 6427 |
the Revised Code. The board may sue and be sued, plead and be | 6428 |
impleaded, contract and be contracted with, and do all things | 6429 |
necessary to carry out such sections. All of its business shall be | 6430 |
transacted, and all of its funds invested, all warrants for money | 6431 |
drawn and payments made, and all of its cash, securities, and | 6432 |
other property shall be held in the name of the board or in the | 6433 |
name of its nominee, provided that nominees are authorized by | 6434 |
retirement board resolution for the purpose of facilitating the | 6435 |
ownership and transfer of investments and are restricted to | 6436 |
members of the board, the executive director, and designated | 6437 |
members of the staff, or a partnership or corporation composed of | 6438 |
any of the foregoing persons. | 6439 |
If the Ohio retirement study council establishes a uniform | 6440 |
format for any report the board is required to submit to the | 6441 |
council, the board shall submit the report in that format. | 6442 |
Sec. 3307.041. The state teachers retirement board shall do | 6443 |
all of the following: | 6444 |
(A) In consultation with the Ohio ethics commission, review | 6445 |
any existing policy regarding the travel and payment of travel | 6446 |
expenses of members and employees of the state teachers retirement | 6447 |
board and adopt rules in accordance with section 3307.04 of the | 6448 |
Revised Code establishing a new or revised policy regarding travel | 6449 |
and payment of travel expenses. Not less than sixty days before | 6450 |
adopting a new or revised policy, the board shall submit the | 6451 |
policy to the Ohio retirement study council for review. | 6452 |
(B) If the board intends to award a bonus to any employee of | 6453 |
the board, adopt rules in accordance with section 3307.04 of the | 6454 |
Revised Code establishing a policy regarding employee bonuses; | 6455 |
(C) Provide copies of the rules adopted under divisions (A) | 6456 |
and (B) of this section to each member of the Ohio retirement | 6457 |
study council; | 6458 |
(D) Submit to the Ohio retirement study council a proposed | 6459 |
operating budget, including an administrative budget for the | 6460 |
board, for the next immediate fiscal year and adopt that budget | 6461 |
not earlier than sixty days after it is submitted to the council; | 6462 |
(E) Submit to the council a plan describing how the board | 6463 |
will improve the dissemination of public information pertaining to | 6464 |
the board. | 6465 |
Sec. 3307.042. The state teachers retirement board shall, in | 6466 |
consultation with the Ohio ethics commission, develop an ethics | 6467 |
policy to govern board members and employees in the performance of | 6468 |
their official duties. The board shall submit this policy to the | 6469 |
commission for approval. | 6470 |
The commission shall review the policy and, if the commission | 6471 |
determines that the policy is adequate, approve the policy. If the | 6472 |
commission determines that the policy is inadequate, it shall | 6473 |
specify the revisions to be made and the board shall submit a | 6474 |
revised policy. If the commission approves the revised policy, the | 6475 |
board shall adopt it. If not, the board shall make any further | 6476 |
revisions required by the commission and adopt the policy. Not | 6477 |
less than sixty days before adopting the policy, the board shall | 6478 |
submit it to the Ohio retirement study council for review. | 6479 |
The board periodically shall provide ethics training to | 6480 |
members and employees of the board. The training shall include | 6481 |
training regarding the requirements and prohibitions of Chapter | 6482 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 6483 |
Revised Code and any other training the board considers | 6484 |
appropriate. | 6485 |
The board shall establish a procedure to ensure that each | 6486 |
employee of the board is informed of the procedure for filing a | 6487 |
complaint alleging violation of Chapter 102. of the Revised Code | 6488 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 6489 |
ethics commission or the appropriate prosecuting attorney. | 6490 |
Sec. 3307.043. (A) The state teachers retirement board shall | 6491 |
designate a person who is a licensed state retirement system | 6492 |
investment officer to be the chief investment officer for the | 6493 |
state teachers retirement system. The board shall notify the | 6494 |
division of securities of the department of commerce in writing of | 6495 |
its designation and of any change in its designation within ten | 6496 |
calendar days of the designation or change. | 6497 |
(B) The chief investment officer shall reasonably supervise | 6498 |
the licensed state retirement system investment officers and other | 6499 |
persons employed by the state teachers retirement system with a | 6500 |
view toward preventing violations of Chapter 1707. of the Revised | 6501 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 6502 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 6503 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 6504 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 6505 |
promulgated under those statutes. This duty of reasonable | 6506 |
supervision shall include the adoption, implementation, and | 6507 |
enforcement of written policies and procedures reasonably designed | 6508 |
to prevent persons employed by the state teachers retirement | 6509 |
system from misusing material, nonpublic information in violation | 6510 |
of those laws, rules, and regulations. | 6511 |
For purposes of this division, no chief investment officer | 6512 |
shall be considered to have failed to satisfy the officer's duty | 6513 |
of reasonable supervision if the officer has done all of the | 6514 |
following: | 6515 |
(1) Adopted and implemented written procedures, and a system | 6516 |
for applying the procedures, that would reasonably be expected to | 6517 |
prevent and detect, insofar as practicable, any violation by its | 6518 |
licensed investment officers and other persons employed by the | 6519 |
state teachers retirement system; | 6520 |
(2) Reasonably discharged the duties and obligations | 6521 |
incumbent on the chief investment officer by reason of the | 6522 |
established procedures and the system for applying the procedures | 6523 |
when the officer had no reasonable cause to believe that there was | 6524 |
a failure to comply with the procedures and systems; | 6525 |
(3) Reviewed, at least annually, the adequacy of the policies | 6526 |
and procedures established pursuant to this section and the | 6527 |
effectiveness of their implementation. | 6528 |
(C) The chief investment officer shall establish and maintain | 6529 |
a policy to monitor and evaluate the effectiveness of securities | 6530 |
transactions executed on behalf of the board. | 6531 |
No chief investment officer shall be considered to have | 6532 |
failed to satisfy the officer's duty under this division if the | 6533 |
officer has done both of the following: | 6534 |
(1) Implemented the policy adopted by the board under section | 6535 |
3307.152 of the Revised Code that outlines the criteria used to | 6536 |
select agents that execute securities transactions on behalf of | 6537 |
the state teachers retirement system. | 6538 |
(2) Reviewed, at least annually, the performance of agents | 6539 |
that execute securities transactions on behalf of the state | 6540 |
teachers retirement system. | 6541 |
Sec. 3307.044. The state teachers retirement board shall | 6542 |
appoint a committee to oversee the selection of an internal | 6543 |
auditor. The committee shall select one or more persons for | 6544 |
employment as an internal auditor. The board shall employ the | 6545 |
person or persons selected by the committee. | 6546 |
The committee shall consist of the following board members: | 6547 |
one retirant member, one contributing member, and one ex officio | 6548 |
member. The committee shall annually prepare and submit to the | 6549 |
Ohio retirement study council a report of its actions during the | 6550 |
preceding year. | 6551 |
Sec. 3307.05. The state teachers retirement board shall | 6553 |
consist of the
following | 6554 |
(A) The superintendent of public instruction | 6555 |
of the superintendent who has the following qualifications: | 6556 |
(1) The designee is a resident of this state. | 6557 |
(2) Within the three years immediately preceding the | 6558 |
appointment, the designee has not been employed by the public | 6559 |
employees retirement system, police and fire pension fund, state | 6560 |
teachers retirement system, school employees retirement system, or | 6561 |
state highway patrol retirement system or by any person, | 6562 |
partnership, or corporation that has provided to one of those | 6563 |
retirement systems services of a financial or investment nature, | 6564 |
including the management, analysis, supervision, or investment of | 6565 |
assets. | 6566 |
(3) The designee has direct experience in the management, | 6567 |
analysis, supervision, or investment of assets. | 6568 |
(B) | 6569 |
of state's investment designee, who shall be appointed by the | 6570 |
treasurer of state for a term of four years and have the following | 6571 |
qualifications: | 6572 |
(a) The member is a resident of this state. | 6573 |
(b) Within the three years immediately preceding the | 6574 |
appointment, the member has not been employed by the public | 6575 |
employees retirement system, police and fire pension fund, state | 6576 |
teachers retirement system, school employees retirement system, or | 6577 |
state highway patrol retirement system or by any person, | 6578 |
partnership, or corporation that has provided to one of those | 6579 |
retirement systems services of a financial or investment nature, | 6580 |
including management, analysis, supervision, or investment of | 6581 |
assets. | 6582 |
(c) The member has direct experience in the management, | 6583 |
analysis, supervision, or investment of assets. | 6584 |
(d) The member is not currently employed by the state or a | 6585 |
political subdivision of the state. | 6586 |
(C) | 6587 |
investment expert members, who shall be appointed for four-year | 6588 |
terms. One investment expert member shall be appointed by the | 6589 |
governor, and one investment expert member shall be jointly | 6590 |
appointed by the speaker of the house of representatives and the | 6591 |
president of the senate. Each investment expert member shall have | 6592 |
the following qualifications: | 6593 |
(a) Each member shall be a resident of this state. | 6594 |
(b) Within the three years immediately preceding the | 6595 |
appointment, each member shall not have been employed by the | 6596 |
public employees retirement system, police and fire pension fund, | 6597 |
state teachers retirement system, school employees retirement | 6598 |
system, or state highway patrol retirement system or by any | 6599 |
person, partnership, or corporation that has provided to one of | 6600 |
those retirement systems services of a financial or investment | 6601 |
nature, including the management, analysis, supervision, or | 6602 |
investment of assets. | 6603 |
(c) Each member shall have direct experience in the | 6604 |
management, analysis, supervision, or investment of assets. | 6605 |
Any investment expert member appointed to fill a vacancy | 6606 |
occurring prior to the expiration of the term for which the | 6607 |
member's predecessor was appointed shall hold office until the end | 6608 |
of such term. The member shall continue in office subsequent to | 6609 |
the expiration date of the member's term until the member's | 6610 |
successor takes office, or until a period of sixty days has | 6611 |
elapsed, whichever occurs first. | 6612 |
(D) Five members, known as | 6613 |
shall be members of the state teachers retirement system; | 6614 |
(E) | 6615 |
retired
teacher | 6616 |
superannuates who | 6617 |
positions requiring | 6618 |
contributions to the system. | 6619 |
Sec. 3307.051. Each newly elected member of the state | 6620 |
teachers retirement board and each individual appointed to fill a | 6621 |
vacancy on the board, shall, not later than ninety days after | 6622 |
commencing service as a board member, complete the orientation | 6623 |
program component of the retirement board member education program | 6624 |
established under section 171.50 of the Revised Code. | 6625 |
Each member of the board who has served a year or longer as a | 6626 |
board member shall, not less than twice each year, attend one or | 6627 |
more programs that are part of the continuing education component | 6628 |
of the retirement board member education program established under | 6629 |
section 171.50 of the Revised Code. | 6630 |
Sec. 3307.052. A person who served as an elected or appointed | 6631 |
member of the state teachers retirement board for one or more | 6632 |
entire fiscal years in fiscal years 2000, 2001, or 2002 is | 6633 |
ineligible for re-election or reappointment to the board if the | 6634 |
board paid travel-related expenses of the person or reimbursed the | 6635 |
person for travel-related expenses that averaged more than ten | 6636 |
thousand dollars annually for those fiscal years. | 6637 |
Sec. 3307.06. (A) Annually on the first Monday of May, one | 6638 |
6639 | |
3307.05 of the Revised Code, shall be elected by ballot to the | 6640 |
state teachers retirement board, except that, beginning with the | 6641 |
annual
election for | 6642 |
in the annual
election of each fourth year thereafter, two | 6643 |
contributing members shall be elected to the board. Elected | 6644 |
6645 | |
office on the first day of September following their election and | 6646 |
shall serve for a term of four years. | 6647 |
(B) The retired teacher | 6648 |
defined in division (E) of section 3307.05 of the Revised Code, | 6649 |
shall be
elected for a term of four years | 6650 |
6651 | |
The
retired teacher | 6652 |
at the
annual election for | 6653 |
board, as provided in division (A) of this section, in the year in | 6654 |
which the term of
the current retired teacher | 6655 |
expire. The retired
teacher | 6656 |
their respective terms of office on the first day of September | 6657 |
following | 6658 |
No | 6659 |
a member of the board shall be eligible to become a retired | 6660 |
teacher member of the board for three years after the date of the | 6661 |
member's retirement. | 6662 |
(C) If a vacancy occurs during the term of office of any | 6663 |
elected member of the board, the remaining members of the board | 6664 |
shall elect a successor member | 6665 |
election results in accordance with rules adopted under section | 6666 |
3307.075 of the Revised Code the successor member shall hold | 6667 |
office | 6668 |
board election that occurs not less than ninety days after the | 6669 |
successor member's election. The successor member shall qualify | 6670 |
for board membership under the same division of section 3307.05 of | 6671 |
the Revised Code as | 6672 |
Elections under this division shall be conducted in accordance | 6673 |
with rules adopted under section 3307.075 of the Revised Code. | 6674 |
(D) If as a result of changed circumstances an elected member | 6675 |
of the board would no longer qualify for board membership under | 6676 |
that division of section 3307.05 of the Revised Code on the basis | 6677 |
of which | 6678 |
attend the meetings of the board for four months or longer, | 6679 |
without being excused, | 6680 |
shall be considered vacant, and a successor member shall be | 6681 |
elected, under division (C) of this section, for the remainder of | 6682 |
6683 |
Sec. 3307.061. (A) The office of a contributing member or | 6684 |
retired teacher member of the state teachers retirement board who | 6685 |
is convicted of or pleads guilty to a felony, a theft offense as | 6686 |
defined in section 2913.01 of the Revised Code, or a violation of | 6687 |
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, | 6688 |
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code | 6689 |
shall be deemed vacant. A person who has pleaded guilty to or been | 6690 |
convicted of an offense of that nature is ineligible for election | 6691 |
to the office of contributing or retired teacher member of the | 6692 |
state teachers retirement board. | 6693 |
(B) A member of the state teachers retirement board who | 6694 |
willfully and flagrantly exercises authority or power not | 6695 |
authorized by law, refuses or willfully neglects to enforce the | 6696 |
law or to perform any official duty imposed by law, or is guilty | 6697 |
of gross neglect of duty, gross immorality, drunkenness, | 6698 |
misfeasance, malfeasance, or nonfeasance is guilty of misconduct | 6699 |
in office. On complaint and hearing in the manner provided for in | 6700 |
this section, the board member shall have judgment of forfeiture | 6701 |
of the office with all its emoluments entered against the board | 6702 |
member, creating in the office a vacancy to be filled as provided | 6703 |
by law. | 6704 |
(C) Proceedings for removal of a board member on any of the | 6705 |
grounds enumerated in division (B) of this section shall be | 6706 |
commenced by filing with the court of appeals of the district in | 6707 |
which the board member resides a written complaint specifically | 6708 |
setting forth the charge. The complaint shall be accepted if | 6709 |
signed by the governor or signed as follows: | 6710 |
(1) If the complaint is against a contributing member of the | 6711 |
board, the complaint must be signed by a number of contributing | 6712 |
members of the retirement system that equals at least the | 6713 |
following and must include signatures of at least twenty | 6714 |
contributing members residing in at least five different counties: | 6715 |
(a) If the contributing member was most recently elected in | 6716 |
accordance with division (A) of section 3307.06 of the Revised | 6717 |
Code, ten per cent of the number of contributing members of the | 6718 |
system who voted in that election; | 6719 |
(b) If the contributing member was most recently elected | 6720 |
under division (D) of section 3307.06 of the Revised Code or took | 6721 |
office in accordance with section 3307.071 of the Revised Code, | 6722 |
ten per cent of the number of contributing members of the system | 6723 |
who voted in the most recent election held in accordance with | 6724 |
division (A) of section 3307.06 of the Revised Code for that | 6725 |
contributing member position on the board. | 6726 |
(2) If the complaint is against a retired teacher member of | 6727 |
the board, the complaint must be signed by a number of former | 6728 |
members of the system who are superannuates, as defined in section | 6729 |
3307.01 of the Revised Code, that equals at least the following | 6730 |
and must include signatures of at least twenty retired teacher | 6731 |
members residing in at least five different counties: | 6732 |
(a) If the retired teacher member was most recently elected | 6733 |
in accordance with division (C) of section 3307.06 of the Revised | 6734 |
Code, ten per cent of the number of former members of the system | 6735 |
who voted in that election; | 6736 |
(b) If the retired teacher member was most recently elected | 6737 |
under division (D) of section 3307.06 of the Revised Code or took | 6738 |
office in accordance with section 3307.071 of the Revised Code, | 6739 |
ten per cent of the number of former members of the system who | 6740 |
voted in the most recent election held in accordance with division | 6741 |
(B) of section 3307.06 of the Revised Code for that retired | 6742 |
teacher member position on the board. | 6743 |
(D) The clerk of the court of appeals in which a complaint | 6744 |
against a member of the state teachers retirement board is filed | 6745 |
under division (C) of this section shall do both of the following | 6746 |
with respect to the complaint: | 6747 |
(1) Submit the signatures obtained pursuant to division (C) | 6748 |
of this section to the board for purposes of verifying the | 6749 |
validity of the signatures. The board shall verify the validity of | 6750 |
the signatures and report its findings to the court. | 6751 |
(2) Cause a copy of the complaint to be served on the board | 6752 |
member at least ten days before the hearing on the complaint. The | 6753 |
court shall hold a public hearing not later than thirty days after | 6754 |
the filing of the complaint. The court may subpoena witnesses and | 6755 |
compel their attendance in the same manner as in civil cases. | 6756 |
Process shall be served by the sheriff of the county in which the | 6757 |
witness resides. Witness fees and other fees in connection with | 6758 |
the proceedings shall be the same as in civil cases. The court may | 6759 |
suspend the board member pending the hearing. | 6760 |
If the court finds that one or more of the charges in the | 6761 |
complaint are true, it shall make a finding for removal of the | 6762 |
board member. The court's finding shall include a full detailed | 6763 |
statement of the reasons for the removal. The finding shall be | 6764 |
filed with the clerk of the court and be made a matter of public | 6765 |
record. | 6766 |
The board member has the right of review or appeal to the | 6767 |
supreme court on leave first obtained. The supreme court shall | 6768 |
hear the case in not more than thirty court days after granting | 6769 |
leave. In other respects, the hearing shall follow the regular | 6770 |
procedure in appealable cases that originate in the court of | 6771 |
appeals. | 6772 |
(E) No individual who has been removed from the board | 6773 |
pursuant to this section shall be eligible to fill an elective or | 6774 |
appointed position as a member of the board. | 6775 |
Sec. 3307.07. All elections of members of the state teachers | 6776 |
retirement board shall be held under the direction of the board in | 6777 |
accordance with rules adopted under section 3307.075 of the | 6778 |
Revised Code. Any member of the state teachers retirement system, | 6779 |
who has been nominated by a petition that is signed by five | 6780 |
hundred or more members of the system and certified in accordance | 6781 |
with rules adopted under section 3307.075 of the Revised Code, | 6782 |
shall be eligible for election as a
| 6783 |
the board. The petition shall contain the signatures of twenty or | 6784 |
more members of the system from each of at least ten counties | 6785 |
wherein members of the system are employed. | 6786 |
Any retired teacher who is a superannuate and a resident of | 6787 |
Ohio is
eligible for election
as | 6788 |
the board, if such retired teacher has been nominated by a | 6789 |
petition that is signed by five hundred or more retired teachers, | 6790 |
who are also superannuates, and certified in accordance with rules | 6791 |
adopted under section 3307.075 of the Revised Code. The petition | 6792 |
shall contain the signatures of twenty or more retired teachers | 6793 |
from each of at least ten counties wherein superannuates under the | 6794 |
system reside. | 6795 |
The board shall place the name of any eligible candidate upon | 6796 |
the appropriate ballot as a regular candidate. At any election, | 6797 |
qualified voters, as defined in this section, may vote for the | 6798 |
regular candidates or for other eligible candidates, in which case | 6799 |
the names of such persons shall be written upon the appropriate | 6800 |
ballots, except that members of the system and former members of | 6801 |
the system who are superannuates shall vote respectively for | 6802 |
6803 | |
members of the board. The candidate who receives the highest | 6804 |
number of votes for any term of office shall be elected to the | 6805 |
board on certification of the election results in accordance with | 6806 |
rules adopted under section 3307.075 of the Revised Code. If, at | 6807 |
any election, | 6808 |
members are to be elected for concurrent terms, eligible | 6809 |
candidates shall be placed on the ballot, and the candidates who | 6810 |
receive the highest numbers of votes shall be elected to the board | 6811 |
on certification of the election results in accordance with rules | 6812 |
adopted under section 3307.075 of the Revised Code. | 6813 |
Elected members of the board shall be elected on the basis of | 6814 |
the total number of ballots cast by qualified voters, who shall | 6815 |
consist of members of the system and former members of the system | 6816 |
who are superannuates. | 6817 |
Sec. 3307.071. Notwithstanding sections 3307.06 and 3307.07 | 6818 |
of the Revised Code, the state teachers retirement board is not | 6819 |
required to hold an election for a position on the board as a | 6820 |
6821 | |
candidate has been nominated for the position by petition in | 6822 |
accordance with section 3307.07 of the Revised Code. The candidate | 6823 |
shall take office as if elected. The term of office shall be four | 6824 |
years beginning on the first day of September following the date | 6825 |
the candidate was nominated. | 6826 |
Sec. 3307.072. (A) As used in this section: | 6827 |
(1) "Campaign committee" means a candidate or a combination | 6828 |
of two or more persons authorized by a candidate to receive | 6829 |
contributions and in-kind contributions and make expenditures on | 6830 |
behalf of the candidate. | 6831 |
(2) "Candidate" means an individual who has been nominated | 6832 |
pursuant to section 3307.07 of the Revised Code for election to | 6833 |
the state teachers retirement board or who is seeking to be | 6834 |
elected to fill a vacancy on the board pursuant to division (D) of | 6835 |
section 3307.06 of the Revised Code. | 6836 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 6837 |
of indebtedness, donation, advance, payment, transfer of funds or | 6838 |
transfer of anything of value including a transfer of funds from | 6839 |
an inter vivos or testamentary trust or decedent's estate, and the | 6840 |
payment by any person other than the person to whom the services | 6841 |
are rendered for the personal services of another person, which | 6842 |
contribution is made, received, or used for the purpose of | 6843 |
influencing the results of an election to the state teachers | 6844 |
retirement board under section 3307.07 of the Revised Code or the | 6845 |
results of an election to fill a vacancy on the board pursuant to | 6846 |
division (D) of section 3307.06 of the Revised Code. | 6847 |
"Contribution" does not include: | 6848 |
(a) Services provided without compensation by individuals | 6849 |
volunteering a portion or all of their time on behalf of a person; | 6850 |
(b) Ordinary home hospitality; | 6851 |
(c) The personal expenses of a volunteer paid for by that | 6852 |
volunteer campaign worker. | 6853 |
(4) "Election day" means the following, as appropriate to the | 6854 |
situation: | 6855 |
(a) The first Monday in May of a year for which section | 6856 |
3307.06 of the Revised Code specifies that an election for a | 6857 |
member of the state teachers retirement board be held; | 6858 |
(b) If, pursuant to section 3307.071 of the Revised Code, no | 6859 |
election is held, the first Monday in May of a year that the | 6860 |
election would have been held if not for section 3307.071 of the | 6861 |
Revised Code. | 6862 |
(5) "Expenditure" means the disbursement or use of a | 6863 |
contribution for the purpose of influencing the results of an | 6864 |
election to the state teachers retirement board under section | 6865 |
3307.07 of the Revised Code or the results of an election to fill | 6866 |
a vacancy on the board pursuant to division (D) of section 3307.06 | 6867 |
of the Revised Code. | 6868 |
(6) "Independent expenditure" means an expenditure by an | 6869 |
individual, partnership, or other entity advocating the election | 6870 |
or defeat of an identified candidate or candidates, that is not | 6871 |
made with the consent of, in coordination, cooperation, or | 6872 |
consultation with, or at the request or suggestion of any | 6873 |
candidate or candidates or of the campaign committee or agent of | 6874 |
the candidate or candidates. An independent expenditure shall not | 6875 |
be construed as being a contribution. As used in division (A)(6) | 6876 |
of this section: | 6877 |
(a) "Advocating" means any communication containing a message | 6878 |
advocating election or defeat. | 6879 |
(b) "Identified candidate" means that the name of the | 6880 |
candidate appears, a photograph or drawing of the candidate | 6881 |
appears, or the identity of the candidate is otherwise apparent by | 6882 |
unambiguous reference. | 6883 |
(c) "Made in coordination, cooperation, or consultation with, | 6884 |
or at the request or suggestion of, any candidate or the campaign | 6885 |
committee or agent of the candidate" means made pursuant to any | 6886 |
arrangement, coordination, or direction by the candidate, the | 6887 |
candidate's campaign committee, or the candidate's agent prior to | 6888 |
the publication, distribution, display, or broadcast of the | 6889 |
communication. An expenditure is presumed to be so made when it is | 6890 |
any of the following: | 6891 |
(i) Based on information about the candidate's plans, | 6892 |
projects, or needs provided to the person making the expenditure | 6893 |
by the candidate, or by the candidate's campaign committee or | 6894 |
agent, with a view toward having an expenditure made; | 6895 |
(ii) Made by or through any person who is, or has been, | 6896 |
authorized to raise or expend funds, who is, or has been, an | 6897 |
officer of the candidate's campaign committee, or who is, or has | 6898 |
been, receiving any form of compensation or reimbursement from the | 6899 |
candidate or the candidate's campaign committee or agent; | 6900 |
(iii) Made by a political party in support of a candidate, | 6901 |
unless the expenditure is made by a political party to conduct | 6902 |
voter registration or voter education efforts. | 6903 |
(d) "Agent" means any person who has actual oral or written | 6904 |
authority, either express or implied, to make or to authorize the | 6905 |
making of expenditures on behalf of a candidate, or means any | 6906 |
person who has been placed in a position with the candidate's | 6907 |
campaign committee or organization such that it would reasonably | 6908 |
appear that in the ordinary course of campaign-related activities | 6909 |
the person may authorize expenditures. | 6910 |
(7) "In-kind contribution" means anything of value other than | 6911 |
money that is used to influence the results of an election to the | 6912 |
state teachers retirement board under section 3307.07 of the | 6913 |
Revised Code or the results of an election to fill a vacancy on | 6914 |
the board pursuant to division (D) of section 3307.06 of the | 6915 |
Revised Code or is transferred to or used in support of or in | 6916 |
opposition to a candidate and that is made with the consent of, in | 6917 |
coordination, cooperation, or consultation with, or at the request | 6918 |
or suggestion of the benefited candidate. The financing of the | 6919 |
dissemination, distribution, or republication, in whole or part, | 6920 |
of any broadcast or of any written, graphic, or other form of | 6921 |
campaign materials prepared by the candidate, the candidate's | 6922 |
campaign committee, or their authorized agents is an in-kind | 6923 |
contribution to the candidate and an expenditure by the candidate. | 6924 |
(8) "Personal expenses" includes ordinary expenses for | 6925 |
accommodations, clothing, food, personal motor vehicle or | 6926 |
airplane, and home telephone. | 6927 |
(B) Except as otherwise provided in division (D) of this | 6928 |
section, each candidate who, or whose campaign committee, receives | 6929 |
contributions or in-kind contributions totaling one thousand | 6930 |
dollars or more or has expenditures totaling one thousand dollars | 6931 |
or more in connection with the candidate's efforts to be elected | 6932 |
to the state teachers retirement board shall file with the | 6933 |
secretary of state two complete, accurate, and itemized statements | 6934 |
setting forth in detail the contributions, in-kind contributions, | 6935 |
and expenditures. The statements shall be filed regardless of | 6936 |
whether, pursuant to section 3307.071 of the Revised Code, no | 6937 |
election is held. The statements shall be made on a form | 6938 |
prescribed under section 111.30 of the Revised Code. Every | 6939 |
expenditure shall be vouched for by a receipted bill, stating the | 6940 |
purpose of the expenditures, that shall be filed with the | 6941 |
statement; a canceled check with a notation of the purpose of the | 6942 |
expenditure is a receipted bill for purposes of this division. | 6943 |
The first statement shall be filed not later than four p.m. | 6944 |
on the day that is twelve days before election day. The second | 6945 |
statement shall be filed not sooner than the day that is eight | 6946 |
days after election day and not later than thirty-eight days after | 6947 |
election day. The first statement shall reflect contributions and | 6948 |
in-kind contributions received and expenditures made to the close | 6949 |
of business on the twentieth day before election day. The second | 6950 |
statement shall reflect contributions and in-kind contributions | 6951 |
received and expenditures made during the period beginning on the | 6952 |
nineteenth day before election day and ending on the close of | 6953 |
business on the seventh day after election day. | 6954 |
(C) Each individual, partnership, or other entity who makes | 6955 |
an independent expenditure in connection with the candidate's | 6956 |
efforts to be elected to the state teachers retirement board shall | 6957 |
file with the secretary of state two complete, accurate, and | 6958 |
itemized statements setting forth in detail the independent | 6959 |
expenditures. The statements shall be filed regardless of whether, | 6960 |
pursuant to section 3307.071 of the Revised Code, no election is | 6961 |
held. The statements shall be made on a form prescribed under | 6962 |
section 111.30 of the Revised Code. | 6963 |
The first statement shall be filed not later than four p.m. | 6964 |
on the day that is twelve days before election day. The second | 6965 |
statement shall be filed not sooner than the day that is eight | 6966 |
days after election day and not later than thirty-eight days after | 6967 |
election day. The first statement shall reflect independent | 6968 |
expenditures made to the close of business on the twentieth day | 6969 |
before election day. The second statement shall reflect | 6970 |
independent expenditures made during the period beginning on the | 6971 |
nineteenth day before election day and ending on the close of | 6972 |
business on the seventh day after election day. | 6973 |
(D) Each candidate who, or whose campaign committee, receives | 6974 |
a contribution or in-kind contribution or makes an expenditure in | 6975 |
connection with the candidate's efforts to be elected to fill a | 6976 |
vacancy in the state teachers retirement board pursuant to | 6977 |
division (D) of section 3307.06 of the Revised Code shall file | 6978 |
with the secretary of state a complete, accurate, and itemized | 6979 |
statement setting forth in detail the contributions, in-kind | 6980 |
contributions, and expenditures. The statement shall be made on a | 6981 |
form prescribed under section 111.30 of the Revised Code. Every | 6982 |
expenditure shall be vouched for by a receipted bill, stating the | 6983 |
purpose of the expenditures, that shall be filed with the | 6984 |
statement; a canceled check with a notation of the purpose of the | 6985 |
expenditure is a receipted bill for purposes of this division. | 6986 |
The statement shall be filed within thirty-eight days after | 6987 |
the day the candidate takes office. The statement shall reflect | 6988 |
contributions and in-kind contributions received and expenditures | 6989 |
made to the close of business on the seventh day after the day the | 6990 |
candidate takes office. | 6991 |
Sec. 3307.073. (A) No person shall knowingly fail to file a | 6992 |
complete and accurate campaign finance statement or independent | 6993 |
expenditure statement in accordance with section 3307.072 of the | 6994 |
Revised Code. | 6995 |
(B) No person, during the course of a person seeking | 6996 |
nomination for, and during any campaign for, election to the state | 6997 |
teachers retirement board, shall knowingly and with intent to | 6998 |
affect the nomination or the outcome of the campaign do any of the | 6999 |
following by means of campaign materials, an advertisement on | 7000 |
radio or television or in a newspaper or periodical, a public | 7001 |
speech, press release, or otherwise: | 7002 |
(1) With regard to a candidate, identify the candidate in a | 7003 |
manner that implies that the candidate is a member of the board or | 7004 |
use the term "re-elect" when the candidate is not currently a | 7005 |
member of the board; | 7006 |
(2) Make a false statement concerning the formal schooling or | 7007 |
training completed or attempted by a candidate; a degree, diploma, | 7008 |
certificate, scholarship, grant, award, prize, or honor received, | 7009 |
earned, or held by a candidate; or the period of time during which | 7010 |
a candidate attended any school, college, community technical | 7011 |
school, or institution; | 7012 |
(3) Make a false statement concerning the professional, | 7013 |
occupational, or vocational licenses held by a candidate, or | 7014 |
concerning any position the candidate held for which the candidate | 7015 |
received a salary or wages; | 7016 |
(4) Make a false statement that a candidate or board member | 7017 |
has been indicted or convicted of a theft offense, extortion, or | 7018 |
other crime involving financial corruption or moral turpitude; | 7019 |
(5) Make a statement that a candidate has been indicted for | 7020 |
any crime or has been the subject of a finding by the Ohio | 7021 |
elections commission without disclosing the outcome of any legal | 7022 |
proceedings resulting from the indictment or finding; | 7023 |
(6) Make a false statement that a candidate or board member | 7024 |
has a record of treatment or confinement for mental disorder; | 7025 |
(7) Make a false statement that a candidate or board member | 7026 |
has been subjected to military discipline for criminal misconduct | 7027 |
or dishonorably discharged from the armed services; | 7028 |
(8) Falsely identify the source of a statement, issue | 7029 |
statements under the name of another person without authorization, | 7030 |
or falsely state the endorsement of or opposition to a candidate | 7031 |
by a person or publication; | 7032 |
(9) Make a false statement concerning the voting record of a | 7033 |
candidate or board member; | 7034 |
(10) Post, publish, circulate, distribute, or otherwise | 7035 |
disseminate a false statement concerning a candidate, either | 7036 |
knowing the same to be false or with reckless disregard of whether | 7037 |
it was false or not, if the statement is designed to promote the | 7038 |
election, nomination, or defeat of the candidate. | 7039 |
Sec. 3307.074. The secretary of state, or any person acting | 7040 |
on personal knowledge and subject to the penalties of perjury, may | 7041 |
file a complaint with the Ohio elections commission alleging a | 7042 |
violation of section 3307.073 of the Revised Code. The complaint | 7043 |
shall be made on a form prescribed and provided by the commission. | 7044 |
On receipt of a complaint under this section, the commission | 7045 |
shall hold a hearing open to the public to determine whether the | 7046 |
violation alleged in the complaint has occurred. The commission | 7047 |
may administer oaths and issue subpoenas to any person in the | 7048 |
state compelling the attendance of witnesses and the production of | 7049 |
relevant papers, books, accounts, and reports. On the refusal of | 7050 |
any person to obey a subpoena or to be sworn or to answer as a | 7051 |
witness, the commission may apply to the court of common pleas of | 7052 |
Franklin county under section 2705.03 of the Revised Code. The | 7053 |
court shall hold contempt proceedings in accordance with Chapter | 7054 |
2705. of the Revised Code. | 7055 |
The commission shall provide the person accused of the | 7056 |
violation at least seven days prior notice of the time, date, and | 7057 |
place of the hearing. The accused may be represented by an | 7058 |
attorney and shall have an opportunity to present evidence, call | 7059 |
witnesses, and cross-examine witnesses. | 7060 |
At the hearing, the commission shall determine whether the | 7061 |
violation alleged in the complaint has occurred. If the commission | 7062 |
determines that a violation of division (A) of section 3307.073 of | 7063 |
the Revised Code has occurred, the commission shall either impose | 7064 |
a fine under section 3307.99 of the Revised Code or enter a | 7065 |
finding that good cause has been shown not to impose the fine. If | 7066 |
the commission determines that a violation of division (B) of | 7067 |
section 3307.073 of the Revised Code has occurred, the commission | 7068 |
shall impose the fine described in section 3307.99 of the Revised | 7069 |
Code, refer the matter to the appropriate prosecutor, or enter a | 7070 |
finding that good cause has been shown not to impose a fine or | 7071 |
refer the matter to a prosecutor. | 7072 |
Sec. 3307.075. (A) The state teachers retirement board, | 7073 |
after consultation with the secretary of state, shall adopt rules | 7074 |
in accordance with Chapter 119. of the Revised Code, governing all | 7075 |
of the following: | 7076 |
(1) The administration of elections of members of the board | 7077 |
under section 3307.07 of the Revised Code and elections held under | 7078 |
section 3307.06 of the Revised Code to fill vacancies on the | 7079 |
board; | 7080 |
(2) Nominating petitions for the elections; | 7081 |
(3) Certification of the validity of nominating petitions for | 7082 |
the elections; | 7083 |
(4) Certification of the results of the elections. | 7084 |
(B) The board may contract with the secretary of state or an | 7085 |
independent firm to administer the elections, certify the validity | 7086 |
of nominating petitions, and certify the results of the elections. | 7087 |
The secretary of state and the independent firm shall perform | 7088 |
these services in accordance with the rules adopted under division | 7089 |
(A) of this section. Notwithstanding section 3307.20 of the | 7090 |
Revised Code, the board shall provide information necessary for | 7091 |
the secretary of state or the independent firm to certify the | 7092 |
election. If the board contracts with an independent firm to | 7093 |
administer an election, the secretary of state may audit the | 7094 |
election. | 7095 |
Sec. 3307.10. (A) The members of the state teachers | 7096 |
retirement board shall serve without compensation, except that | 7097 |
members shall be reimbursed from the expense fund for all actual | 7098 |
necessary expenses incurred while serving on the board. | 7099 |
(B) The board may secure insurance coverage designed to | 7100 |
indemnify board members and employees for their actions or conduct | 7101 |
in the performance of official duties, and may pay required | 7102 |
premiums for such coverage from the expense fund. | 7103 |
(C) If the officers of the board determine that a meeting of | 7104 |
the entire membership, or any part thereof, is necessary, such | 7105 |
determination shall be
final, and | 7106 |
shall be given time off from their employment to attend any such | 7107 |
meeting. The employer of a | 7108 |
reduce the member's earned compensation as a teacher or any | 7109 |
contribution required under section 3307.26 of the Revised Code, | 7110 |
because of
the | 7111 |
employment to attend any such meeting. | 7112 |
The portion of the employer contribution required under | 7113 |
section 3307.28 of the Revised Code that represents earned | 7114 |
compensation of a | 7115 |
of an absence from employment to attend a board meeting, shall be | 7116 |
annually transferred from the expense fund and forwarded to the | 7117 |
employer of
the | 7118 |
(D) The board shall adopt rules in accordance with section | 7119 |
111.15 of the Revised Code establishing a policy for reimbursement | 7120 |
of travel expenses incurred by board members in the performance of | 7121 |
their official duties. As part of any audit performed under | 7122 |
Chapter 117. of the Revised Code, an inquiry shall be made into | 7123 |
whether board members have complied with these rules. | 7124 |
(E) No board member shall accept payment or reimbursement for | 7125 |
travel expenses, other than for meals and other food and beverages | 7126 |
provided to the member, from any source other than the expense | 7127 |
fund. Except in the case of an emergency, no out-of-state travel | 7128 |
expenses shall be reimbursed unless approved in advance by a | 7129 |
majority of the board at a regular board meeting. | 7130 |
Sec. 3307.11. The state teachers retirement board shall | 7131 |
elect from its membership, a chairperson and a vice-chairperson. | 7132 |
The board shall employ an executive director who shall serve as | 7133 |
secretary, and shall employ other persons necessary to operate the | 7134 |
system and to fulfill the board's duties and responsibilities | 7135 |
under Chapter 3307. of the Revised Code. | 7136 |
Effective ninety days after the effective date of this | 7137 |
amendment, the board may not employ a state retirement system | 7138 |
investment officer, as defined in section 1707.01 of the Revised | 7139 |
Code, who does not hold a valid state retirement system investment | 7140 |
officer license issued by the division of securities in the | 7141 |
department of commerce. | 7142 |
The compensation of all employees and all other expenses of | 7143 |
the board necessary for the proper operation of the system shall | 7144 |
be paid in such amounts as the board approves. | 7145 |
Every expense voucher of an employee, officer, or board | 7146 |
member of the state teachers retirement system shall itemize all | 7147 |
purchases and expenditures. | 7148 |
The board shall receive all applications for retirement under | 7149 |
the plans described in section 3307.031 of the Revised Code, shall | 7150 |
provide for the payment of all retirement allowances and other | 7151 |
benefits payable under this chapter, and shall make other | 7152 |
expenditures authorized by this chapter. | 7153 |
Sec. 3307.15. (A) The members of the state teachers | 7154 |
retirement board shall be the trustees of the funds created by | 7155 |
section 3307.14 of the Revised Code. The board shall have full | 7156 |
power to invest the funds. The board and other fiduciaries shall | 7157 |
discharge their duties with respect to the funds solely in the | 7158 |
interest of the participants and beneficiaries; for the exclusive | 7159 |
purpose of providing benefits to participants and their | 7160 |
beneficiaries and defraying reasonable expenses of administering | 7161 |
the system; with care, skill, prudence, and diligence under the | 7162 |
circumstances then prevailing that a prudent person acting in a | 7163 |
like capacity and familiar with these matters would use in the | 7164 |
conduct of an enterprise of a like character and with like aims; | 7165 |
and by diversifying the investments of the system so as to | 7166 |
minimize the risk of large losses, unless under the circumstances | 7167 |
it is clearly prudent not to do so. | 7168 |
To facilitate investment of the funds, the board may | 7169 |
establish a partnership, trust, limited liability company, | 7170 |
corporation, including a corporation exempt from taxation under | 7171 |
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as | 7172 |
amended, or any other legal entity authorized to transact business | 7173 |
in this state. | 7174 |
(B) In exercising its fiduciary responsibility with respect | 7175 |
to the investment of the funds, it shall be the intent of the | 7176 |
board to give consideration to investments that enhance the | 7177 |
general welfare of the state and its citizens where the | 7178 |
investments offer quality, return, and safety comparable to other | 7179 |
investments currently available to the board. In fulfilling this | 7180 |
intent, equal consideration shall also be given to investments | 7181 |
otherwise qualifying under this section that involve minority | 7182 |
owned and controlled firms and firms owned and controlled by | 7183 |
women, either alone or in joint venture with other firms. | 7184 |
The board shall adopt, in regular meeting, policies, | 7185 |
objectives, or criteria for the operation of the investment | 7186 |
program that include asset allocation targets and ranges, risk | 7187 |
factors, asset class benchmarks, time horizons, total return | 7188 |
objectives, and performance evaluation guidelines. In adopting | 7189 |
policies and criteria for the selection of agents with whom the | 7190 |
board may contract for the administration of the funds, the board | 7191 |
shall comply with sections 3307.152 and 3307.154 of the Revised | 7192 |
Code and shall also give equal consideration to minority owned and | 7193 |
controlled firms, firms owned and controlled by women, and | 7194 |
ventures involving minority owned and controlled firms and firms | 7195 |
owned and controlled by women that otherwise meet the policies and | 7196 |
criteria established by the board. Amendments and additions to the | 7197 |
policies and criteria shall be adopted in regular meeting. The | 7198 |
board shall publish its policies, objectives, and criteria under | 7199 |
this provision no less often than annually and shall make copies | 7200 |
available to interested parties. | 7201 |
When reporting on the performance of investments, the board | 7202 |
shall comply with the performance presentation standards | 7203 |
established by the association for investment management and | 7204 |
research. | 7205 |
(C) All bonds, notes, certificates, stocks, or other | 7206 |
evidences of investments purchased by the board shall be delivered | 7207 |
to the treasurer of state, who is hereby designated as custodian | 7208 |
thereof, or to the treasurer of state's authorized agent, and the | 7209 |
treasurer of state or the agent shall collect the principal, | 7210 |
interest, dividends, and distributions that become due and payable | 7211 |
and place them when so collected into the custodial funds. | 7212 |
Evidences of title of the investments may be deposited by the | 7213 |
treasurer of state for safekeeping with an authorized agent, | 7214 |
selected by the treasurer of state, who is a qualified trustee | 7215 |
under section 135.18 of the Revised Code. The treasurer of state | 7216 |
shall pay for the investments purchased by the board on receipt of | 7217 |
written or electronic instructions from the board or the board's | 7218 |
designated agent authorizing the purchase and pending receipt of | 7219 |
the evidence of title of the investment by the treasurer of state | 7220 |
or the treasurer of state's authorized agent. The board may sell | 7221 |
investments held by the board, and the treasurer of state or the | 7222 |
treasurer of state's authorized agent shall accept payment from | 7223 |
the purchaser and deliver evidence of title of the investment to | 7224 |
the purchaser on receipt of written or electronic instructions | 7225 |
from the board or the board's designated agent authorizing the | 7226 |
sale, and pending receipt of the moneys for the investments. The | 7227 |
amount received shall be placed into the custodial funds. The | 7228 |
board and the treasurer of state may enter into agreements to | 7229 |
establish procedures for the purchase and sale of investments | 7230 |
under this division and the custody of the investments. | 7231 |
(D) No purchase or sale of any investment shall be made under | 7232 |
this section except as authorized by the board. | 7233 |
(E) Any statement of financial position distributed by the | 7234 |
board shall include the fair value, as of the statement date, of | 7235 |
all investments held by the board under this section. | 7236 |
Sec. 3307.152. (A) As used in this section and in section | 7237 |
3307.154 of the Revised Code: | 7238 |
(1) "Agent" means a dealer, as defined in section 1707.01 of | 7239 |
the Revised Code, who is licensed under sections 1707.01 to | 7240 |
1707.45 of the Revised Code or under comparable laws of another | 7241 |
state or of the United States. | 7242 |
(2) "Minority business enterprise" has the same meaning as in | 7243 |
section 122.71 of the Revised Code. | 7244 |
(3) "Ohio-qualified agent" means an agent designated as such | 7245 |
by the state teachers retirement board. | 7246 |
(4) "Ohio-qualified investment manager" means an investment | 7247 |
manager designated as such by the state teachers retirement board. | 7248 |
(5) "Principal place of business" means an office in which | 7249 |
the agent regularly provides securities or investment advisory | 7250 |
services and solicits, meets with, or otherwise communicates with | 7251 |
clients. | 7252 |
(B) The state teachers retirement board shall, for the | 7253 |
purposes of this section, designate an agent as an Ohio-qualified | 7254 |
agent if the agent meets all of the following requirements: | 7255 |
(1) The agent is subject to taxation under Chapter 5725., | 7256 |
5733., or 5747. of the Revised Code. | 7257 |
(2) The agent is authorized to conduct business in this | 7258 |
state. | 7259 |
(3) The agent maintains a principal place of business in this | 7260 |
state and employs at least five residents of this state. | 7261 |
(C) The state teachers retirement board shall adopt and | 7262 |
implement a written policy to establish criteria and procedures | 7263 |
used to select agents to execute securities transactions on behalf | 7264 |
of the retirement system. The policy shall address each of the | 7265 |
following: | 7266 |
(a) Commissions charged by the agent, both in the aggregate | 7267 |
and on a per share basis; | 7268 |
(b) The execution speed and trade settlement capabilities of | 7269 |
the agent; | 7270 |
(c) The responsiveness, reliability, and integrity of the | 7271 |
agent; | 7272 |
(d) The nature and value of research provided by the agent; | 7273 |
(e) Any special capabilities of the agent. | 7274 |
(D)(1) The board shall, at least annually, establish a policy | 7275 |
with the goal to increase utilization by the board of | 7276 |
Ohio-qualified agents for the execution of domestic equity and | 7277 |
fixed income trades on behalf of the retirement system, when an | 7278 |
Ohio-qualified agent offers quality, services, and safety | 7279 |
comparable to other agents otherwise available to the board and | 7280 |
meets the criteria established under division (C) of this section. | 7281 |
(2) The board shall review, at least annually, the | 7282 |
performance of the agents that execute securities transactions on | 7283 |
behalf of the board. | 7284 |
(3) The board shall determine whether an agent is an | 7285 |
Ohio-qualified agent, meets the criteria established by the board | 7286 |
pursuant to division (C) of this section, and offers quality, | 7287 |
services, and safety comparable to other agents otherwise | 7288 |
available to the board. The board's determination shall be final. | 7289 |
(E) The board shall, at least annually, submit to the Ohio | 7290 |
retirement study council a report containing the following | 7291 |
information: | 7292 |
(1) The name of each agent designated as an Ohio-qualified | 7293 |
agent under this section; | 7294 |
(2) The name of each agent that executes securities | 7295 |
transactions on behalf of the board; | 7296 |
(3) The amount of equity and fixed-income trades that are | 7297 |
executed by Ohio-qualified agents, expressed as a percentage of | 7298 |
all equity and fixed-income trades that are executed by agents on | 7299 |
behalf of the board; | 7300 |
(4) The compensation paid to Ohio-qualified agents, expressed | 7301 |
as a percentage of total compensation paid to all agents that | 7302 |
execute securities transactions on behalf of the board; | 7303 |
(5) The amount of equity and fixed-income trades that are | 7304 |
executed by agents that are minority business enterprises, | 7305 |
expressed as a percentage of all equity and fixed-income trades | 7306 |
that are executed by agents on behalf of the board; | 7307 |
(6) Any other information requested by the Ohio retirement | 7308 |
study council regarding the board's use of agents. | 7309 |
Sec. 3307.153. (A) The state teachers retirement system shall | 7310 |
disclose the following to the Ohio ethics commission: | 7311 |
(1) Anything of value received by the system from an agent | 7312 |
and anything of value given on behalf of the system by an agent; | 7313 |
(2) The name of any employee of the system with authority | 7314 |
over the investment of retirement system funds or any board member | 7315 |
of the system who deals with an agent regarding amounts described | 7316 |
in division (A)(1) of this section. | 7317 |
(B) The disclosures required by this section shall be made | 7318 |
annually in a report submitted by a date prescribed by the Ohio | 7319 |
ethics commission. | 7320 |
Sec. 3307.154. (A) The state teachers retirement board shall, | 7321 |
for the purposes of this section, designate an investment manager | 7322 |
as an Ohio-qualified investment manager if the investment manager | 7323 |
meets all of the following requirements: | 7324 |
(1) The investment manager is subject to taxation under | 7325 |
Chapter 5725., 5733., or 5747. of the Revised Code. | 7326 |
(2) The investment manager meets one of the following | 7327 |
requirements: | 7328 |
(a) Has its corporate headquarters or principal place of | 7329 |
business in this state; | 7330 |
(b) Employs at least five hundred individuals in this state; | 7331 |
(c) Has a principal place of business in this state and | 7332 |
employs at least twenty residents of this state. | 7333 |
(B)(1) The board shall, at least annually, establish a policy | 7334 |
with the goal to increase utilization by the board of | 7335 |
Ohio-qualified investment managers, when an Ohio-qualified | 7336 |
investment manager offers quality, services, and safety comparable | 7337 |
to other investment managers otherwise available to the board. The | 7338 |
policy shall also provide for the following: | 7339 |
(a) A process whereby the board can develop a list of | 7340 |
Ohio-qualified investment managers and their investment products; | 7341 |
(b) A process whereby the board can give public notice to | 7342 |
Ohio-qualified investment managers of the board's search for an | 7343 |
investment manager that includes the board's search criteria. | 7344 |
(2) The board shall determine whether an investment manager | 7345 |
is an Ohio-qualified investment manager and whether the investment | 7346 |
manager offers quality, services, and safety comparable to other | 7347 |
investment managers otherwise available to the board. The board's | 7348 |
determination shall be final. | 7349 |
(C) The board shall, at least annually, submit to the Ohio | 7350 |
retirement study council a report containing the following | 7351 |
information: | 7352 |
(1) The name of each investment manager designated as an | 7353 |
Ohio-qualified investment manager under this section; | 7354 |
(2) The name of each investment manager with which the board | 7355 |
contracts; | 7356 |
(3) The amount of assets managed by Ohio-qualified investment | 7357 |
managers, expressed as a percentage of the total assets held by | 7358 |
the retirement system and as a percentage of assets managed by | 7359 |
investment managers with which the board has contracted; | 7360 |
(4) The compensation paid to Ohio-qualified investment | 7361 |
managers, expressed as a percentage of total compensation paid to | 7362 |
all investment managers with which the board has contracted; | 7363 |
(5) Any other information requested by the Ohio retirement | 7364 |
study council regarding the board's use of investment managers. | 7365 |
Sec. 3307.20. (A) As used in this section: | 7366 |
(1) "Personal history record" means information maintained by | 7367 |
the state teachers retirement board on an individual who is a | 7368 |
member, former member, contributor, former contributor, retirant, | 7369 |
or beneficiary that includes the address, telephone number, social | 7370 |
security number, record of contributions, correspondence with the | 7371 |
state teachers retirement system, or other information the board | 7372 |
determines to be confidential. | 7373 |
(2) "Retirant" has the same meaning as in section 3307.50 of | 7374 |
the Revised Code. | 7375 |
(B) The records of the board shall be open to public | 7376 |
inspection, except for the following, which shall be excluded, | 7377 |
except with the written authorization of the individual concerned: | 7378 |
(1) The individual's personal records provided for in section | 7379 |
3307.23 of the Revised Code; | 7380 |
(2) The individual's personal history record; | 7381 |
(3) Any information identifying, by name and address, the | 7382 |
amount of a monthly allowance or benefit paid to the individual. | 7383 |
(C) All medical reports and recommendations under sections | 7384 |
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged, | 7385 |
except that copies of such medical reports or recommendations | 7386 |
shall be made available to the personal physician, attorney, or | 7387 |
authorized agent of the individual concerned upon written release | 7388 |
received from the individual or the individual's agent, or, when | 7389 |
necessary for the proper administration of the fund, to the board | 7390 |
assigned physician. | 7391 |
(D) Any person who is a member or contributor of the system | 7392 |
shall be furnished, on written request, with a statement of the | 7393 |
amount to the credit of the person's account. The board need not | 7394 |
answer more than one request of a person in any one year. | 7395 |
(E) Notwithstanding the exceptions to public inspection in | 7396 |
division (B) of this section, the board may furnish the following | 7397 |
information: | 7398 |
(1) If a member, former member, retirant, contributor, or | 7399 |
former contributor is subject to an order issued under section | 7400 |
2907.15 of the Revised Code or is convicted of or pleads guilty to | 7401 |
a violation of section 2921.41 of the Revised Code, on written | 7402 |
request of a prosecutor as defined in section 2935.01 of the | 7403 |
Revised Code, the board shall furnish to the prosecutor the | 7404 |
information requested from the individual's personal history | 7405 |
record. | 7406 |
(2) Pursuant to a court or administrative order issued under | 7407 |
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the | 7408 |
Revised Code, the board shall furnish to a court or child support | 7409 |
enforcement agency the information required under that section. | 7410 |
(3) At the written request of any person, the board shall | 7411 |
provide to the person a list of the names and addresses of | 7412 |
members, former members, retirants, contributors, former | 7413 |
contributors, or beneficiaries. The costs of compiling, copying, | 7414 |
and mailing the list shall be paid by such person. | 7415 |
(4) Within fourteen days after receiving from the director of | 7416 |
job and family services a list of the names and social security | 7417 |
numbers of recipients of public assistance pursuant to section | 7418 |
5101.181 of the Revised Code, the board shall inform the auditor | 7419 |
of state of the name, current or most recent employer address, and | 7420 |
social security number of each member whose name and social | 7421 |
security number are the same as that of a person whose name or | 7422 |
social security number was submitted by the director. The board | 7423 |
and its employees shall, except for purposes of furnishing the | 7424 |
auditor of state with information required by this section, | 7425 |
preserve the confidentiality of recipients of public assistance in | 7426 |
compliance with division (A) of section 5101.181 of the Revised | 7427 |
Code. | 7428 |
(5) The system shall comply with orders issued under section | 7429 |
3105.87 of the Revised Code. | 7430 |
On the written request of an alternate payee, as defined in | 7431 |
section 3105.80 of the Revised Code, the system shall furnish to | 7432 |
the alternate payee information on the amount and status of any | 7433 |
amounts payable to the alternate payee under an order issued under | 7434 |
section 3105.171 or 3105.65 of the Revised Code. | 7435 |
(6) At the request of any person, the board shall make | 7436 |
available to the person copies of all documents, including | 7437 |
resumes, in the board's possession regarding filling a vacancy of | 7438 |
a contributing member or retired teacher member of the board. The | 7439 |
person who made the request shall pay the cost of compiling, | 7440 |
copying, and mailing the documents. The information described in | 7441 |
this division is a public record. | 7442 |
(F) A statement that contains information obtained from the | 7443 |
system's records that is signed by an officer of the retirement | 7444 |
system and to which the system's official seal is affixed, or | 7445 |
copies of the system's records to which the signature and seal are | 7446 |
attached, shall be received as true copies of the system's records | 7447 |
in any court or before any officer of this state. | 7448 |
Sec. 3307.25. (A) An individual who becomes a member of the | 7449 |
state teachers retirement system on or after the date on which the | 7450 |
state teachers retirement board establishes a plan under section | 7451 |
3307.81 of the Revised Code shall make an election under this | 7452 |
section. Not later than one hundred eighty days after the date on | 7453 |
which employment begins, the individual shall elect to participate | 7454 |
either in the plan described in sections 3307.50 to 3307.79 of the | 7455 |
Revised Code or one of the plans established under section 3307.81 | 7456 |
of the Revised Code. If a form evidencing an election under this | 7457 |
section is not on file with the system at the end of the | 7458 |
one-hundred-eighty-day period, the individual is deemed to have | 7459 |
elected to participate in the plan described in sections 3307.50 | 7460 |
to 3307.79 of the Revised Code. | 7461 |
(B) An election under this section shall be made in writing | 7462 |
on a form provided by the system and filed with the system. | 7463 |
(C) An election under this section shall take effect on the | 7464 |
date employment began and, except as provided in section 3307.88 | 7465 |
of the Revised Code, is irrevocable at the end of the election | 7466 |
period described in division (A) of this section. | 7467 |
(D) An individual is ineligible to make an election under | 7468 |
this section if one of the following applies: | 7469 |
(1) At the time employment begins, the individual is already | 7470 |
a member or contributor participating in the plan described in | 7471 |
sections 3307.50 to 3307.79 of the Revised Code, a superannuate of | 7472 |
the system, or an other system retirant, as defined in section | 7473 |
3307.35 of the Revised Code; | 7474 |
(2) An election to participate in an alternative retirement | 7475 |
plan under section 3305.05 or 3305.051 of the Revised Code is in | 7476 |
effect for employment covered by the system. | 7477 |
Sec. 3307.56. (A)(1) Subject to sections 3307.37 and | 7478 |
3307.561 of the Revised Code and except as provided in division | 7479 |
(B)(2) of this section, a member participating in the plan | 7480 |
described in sections 3307.50 to 3307.79 of the Revised Code who | 7481 |
ceases to be a teacher for any cause other than death, retirement, | 7482 |
receipt of a disability benefit, or current employment in a | 7483 |
position in which the member has elected to participate in an | 7484 |
alternative retirement plan under section 3305.05 or 3305.051 of | 7485 |
the Revised Code, upon application, shall be paid the accumulated | 7486 |
contributions standing to the credit of the member's individual | 7487 |
account in the teachers' savings fund plus an amount calculated in | 7488 |
accordance with section 3307.563 of the Revised Code. If the | 7489 |
member or the member's legal representative cannot be found within | 7490 |
ten years after the member ceased making contributions pursuant to | 7491 |
section 3307.26 of the Revised Code, the accumulated contributions | 7492 |
may be transferred to the guarantee fund and thereafter paid to | 7493 |
the member, to the member's beneficiaries, or to the member's | 7494 |
estate, upon proper application. | 7495 |
(2) A member described in division (A)(1) of this section who | 7496 |
is married at the time of application for payment and is eligible | 7497 |
for age and service retirement under section 3307.58 or 3307.59 of | 7498 |
the Revised Code shall submit with the application a written | 7499 |
statement by the member's spouse attesting that the spouse | 7500 |
consents to the payment of the member's accumulated contributions. | 7501 |
Consent shall be valid only if it is signed and witnessed by a | 7502 |
notary public. If the statement is not submitted under this | 7503 |
division, the application shall be considered an application for | 7504 |
service retirement and shall be subject to division (G)(1) of | 7505 |
section 3307.60 of the Revised Code. | 7506 |
The state teachers retirement board may waive the requirement | 7507 |
of consent if the spouse is incapacitated or cannot be located, or | 7508 |
for any other reason specified by the board. Consent or waiver is | 7509 |
effective only with regard to the spouse who is the subject of the | 7510 |
consent or waiver. | 7511 |
(B) This division applies to any member who is employed in a | 7512 |
position in which the member has elected under section 3305.05 or | 7513 |
3305.051 of the Revised Code to participate in an alternative | 7514 |
retirement plan and due to the election ceases to be a teacher for | 7515 |
the purposes of that position. | 7516 |
Subject to sections 3307.37 and 3307.561 of the Revised Code, | 7517 |
the state teachers retirement system shall do the following: | 7518 |
(1) On receipt of a certified copy of an election under | 7519 |
section 3305.05 or 3305.051 of the Revised Code, pay, in | 7520 |
accordance with
section | 7521 |
amount described in that section to the appropriate provider; | 7522 |
(2) If a member has accumulated contributions, in addition to | 7523 |
those subject to division (B)(1) of this section, standing to the | 7524 |
credit of a member's individual account and is not otherwise in a | 7525 |
position in which the member is considered a teacher for the | 7526 |
purposes of that position, pay, to the provider the member | 7527 |
selected pursuant to section 3305.05 or 3305.051 of the Revised | 7528 |
Code, the accumulated contributions standing to the credit of the | 7529 |
member's individual account in the teachers' saving fund plus an | 7530 |
amount calculated in accordance with section 3307.80 of the | 7531 |
Revised Code. The payment shall be made on the member's | 7532 |
application. | 7533 |
(C) Payment of a member's accumulated contributions under | 7534 |
division (B) of this section cancels the member's total service | 7535 |
credit in the state teachers retirement system. A member whose | 7536 |
accumulated contributions are paid to a provider pursuant to | 7537 |
division (B) of this section is forever barred from claiming or | 7538 |
purchasing service credit under the state teachers retirement | 7539 |
system for the period of employment attributable to those | 7540 |
contributions. | 7541 |
Sec. 3307.71. Except as provided in this section | 7542 |
3305.05, or section 3305.051 of the Revised Code, a member or | 7543 |
former member of the state teachers retirement system | 7544 |
participating in the plan described in sections 3307.50 to 3307.79 | 7545 |
of the Revised Code who has at least one and one-half years of | 7546 |
contributing service credit in this system, the public employees | 7547 |
retirement system, the school employees retirement system, the | 7548 |
Ohio police and fire pension fund, or the state highway patrol | 7549 |
retirement system after the withdrawal and cancellation of service | 7550 |
credit in this system may restore all or part of such service | 7551 |
credit by repayment of the amount withdrawn. To this amount shall | 7552 |
be added interest at a rate per annum, compounded annually, to be | 7553 |
determined by the state teachers retirement board. Interest shall | 7554 |
be payable from the first of the month of withdrawal through the | 7555 |
month of repayment. A member may choose to purchase only part of | 7556 |
such credit in any one payment. The cost for restoring partial | 7557 |
service shall be calculated as the proportion that it bears to the | 7558 |
total cost at the time of purchase and is subject to the rules | 7559 |
established by the board. If a former member is eligible to buy | 7560 |
the service credit as a member of the Ohio police and fire pension | 7561 |
fund, the state highway patrol retirement system, or the city of | 7562 |
Cincinnati Retirement System, the former member is ineligible to | 7563 |
restore that service credit under this section. | 7564 |
The total payment to restore canceled service credit shall be | 7565 |
credited as follows: | 7566 |
(A) The amount that equals contributions made pursuant to | 7567 |
section 3307.26 of the Revised Code, plus any interest on the | 7568 |
contributions paid by the member pursuant to this section, to the | 7569 |
member's account in the teachers' savings fund; | 7570 |
(B) The amount that equals the amount paid under section | 7571 |
3307.563 of the Revised Code, to the employers trust fund; | 7572 |
(C) The remainder of the payment to restore canceled service | 7573 |
credit, to the guarantee fund. | 7574 |
Sec. 3307.99. (A) Whoever violates division (A) of section | 7575 |
3307.073 of the Revised Code shall be fined not more than one | 7576 |
hundred dollars for each day of the violation. | 7577 |
(B) Whoever violates division (B) of section 3307.073 of the | 7578 |
Revised Code shall be imprisoned for not more than six months or | 7579 |
fined not more than five thousand dollars, or both. | 7580 |
(C) Fines imposed by the Ohio elections commission under this | 7581 |
section shall be paid into the Ohio elections commission fund | 7582 |
created under section 3513.10 of the Revised Code. | 7583 |
Sec. 3309.03. A school employees retirement system is hereby | 7584 |
established for the employees as defined in section 3309.01 of the | 7585 |
Revised Code, which shall include the several funds created and | 7586 |
placed under the management of the school employees retirement | 7587 |
board for the payment of retirement allowances and other benefits | 7588 |
provided in Chapter 3309. of the Revised Code. The board may sue | 7589 |
and be sued, plead and be impleaded, contract and be contracted | 7590 |
with, and do all things necessary to carry out Chapter 3309. of | 7591 |
the Revised Code. All of its business shall be transacted, all of | 7592 |
its funds invested, all warrants for money drawn and payments | 7593 |
made, and all of its cash, securities, and other property shall be | 7594 |
held in the name of the board, or in the name of its nominee, | 7595 |
provided that nominees are authorized by retirement board | 7596 |
resolution for such purposes. The board may take all appropriate | 7597 |
action to avoid payment by the system or its members of federal or | 7598 |
state income taxes on contributions to the system or amounts | 7599 |
earned on those contributions. | 7600 |
If the Ohio retirement study council establishes a uniform | 7601 |
format for any report the board is required to submit to the | 7602 |
council, the board shall submit the report in that format. | 7603 |
Sec. 3309.041. The school employees retirement board shall do | 7604 |
all of the following: | 7605 |
(A) In consultation with the Ohio ethics commission, review | 7606 |
any existing policy regarding the travel and payment of travel | 7607 |
expenses of members and employees of the school employees | 7608 |
retirement board and adopt rules in accordance with section | 7609 |
3309.04 of the Revised Code establishing a new or revised policy | 7610 |
regarding travel and payment of travel expenses. Not less than | 7611 |
sixty days before adopting a new or revised policy, the board | 7612 |
shall submit the policy to the Ohio retirement study council for | 7613 |
review. | 7614 |
(B) If the board intends to award a bonus to any employee of | 7615 |
the board, adopt rules in accordance with section 3309.04 of the | 7616 |
Revised Code establishing a policy regarding employee bonuses; | 7617 |
(C) Provide copies of the rules adopted under divisions (A) | 7618 |
and (B) of this section to each member of the Ohio retirement | 7619 |
study council; | 7620 |
(D) Submit to the Ohio retirement study council a proposed | 7621 |
operating budget, including an administrative budget for the | 7622 |
board, for the next immediate fiscal year and adopt that budget | 7623 |
not earlier than sixty days after it is submitted to the council; | 7624 |
(E) Submit to the council a plan describing how the board | 7625 |
will improve the dissemination of public information pertaining to | 7626 |
the board. | 7627 |
Sec. 3309.042. The school employees retirement board shall, | 7628 |
in consultation with the Ohio ethics commission, develop an ethics | 7629 |
policy to govern board members and employees in the performance of | 7630 |
their official duties. The board shall submit this policy to the | 7631 |
commission for approval. | 7632 |
The commission shall review the policy and, if the commission | 7633 |
determines that the policy is adequate, approve the policy. If the | 7634 |
commission determines that the policy is inadequate, it shall | 7635 |
specify the revisions to be made and the board shall submit a | 7636 |
revised policy. If the commission approves the revised policy, the | 7637 |
board shall adopt it. If not, the board shall make any further | 7638 |
revisions required by the commission and adopt the policy. Not | 7639 |
less than sixty days before adopting the policy, the board shall | 7640 |
submit it to the Ohio retirement study council for review. | 7641 |
The board periodically shall provide ethics training to | 7642 |
members and employees of the board. The training shall include | 7643 |
training regarding the requirements and prohibitions of Chapter | 7644 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 7645 |
Revised Code and any other training the board considers | 7646 |
appropriate. | 7647 |
The board shall establish a procedure to ensure that each | 7648 |
employee of the board is informed of the procedure for filing a | 7649 |
complaint alleging violation of Chapter 102. of the Revised Code | 7650 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 7651 |
ethics commission or the appropriate prosecuting attorney. | 7652 |
Sec. 3309.043. (A) The school employees retirement board | 7653 |
shall designate a person who is a licensed state retirement system | 7654 |
investment officer to be the chief investment officer for the | 7655 |
school employees retirement system. The board shall notify the | 7656 |
division of securities of the department of commerce in writing of | 7657 |
its designation and of any change in its designation within ten | 7658 |
calendar days of the designation or change. | 7659 |
(B) The chief investment officer shall reasonably supervise | 7660 |
the licensed state retirement system investment officers and other | 7661 |
persons employed by the school employees retirement system with a | 7662 |
view toward preventing violations of Chapter 1707. of the Revised | 7663 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 7664 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 7665 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 7666 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 7667 |
promulgated under those statutes. This duty of reasonable | 7668 |
supervision shall include the adoption, implementation, and | 7669 |
enforcement of written policies and procedures reasonably designed | 7670 |
to prevent persons employed by the school employees retirement | 7671 |
system from misusing material, nonpublic information in violation | 7672 |
of those laws, rules, and regulations. | 7673 |
For purposes of this division, no chief investment officer | 7674 |
shall be considered to have failed to satisfy the officer's duty | 7675 |
of reasonable supervision if the officer has done all of the | 7676 |
following: | 7677 |
(1) Adopted and implemented written procedures, and a system | 7678 |
for applying the procedures, that would reasonably be expected to | 7679 |
prevent and detect, insofar as practicable, any violation by its | 7680 |
licensed investment officers and other persons employed by the | 7681 |
school employees retirement system; | 7682 |
(2) Reasonably discharged the duties and obligations | 7683 |
incumbent on the chief investment officer by reason of the | 7684 |
established procedures and the system for applying the procedures | 7685 |
when the officer had no reasonable cause to believe that there was | 7686 |
a failure to comply with the procedures and systems; | 7687 |
(3) Reviewed, at least annually, the adequacy of the policies | 7688 |
and procedures established pursuant to this section and the | 7689 |
effectiveness of their implementation. | 7690 |
(C) The chief investment officer shall establish and maintain | 7691 |
a policy to monitor and evaluate the effectiveness of securities | 7692 |
transactions executed on behalf of the board. | 7693 |
No chief investment officer shall be considered to have | 7694 |
failed to satisfy the officer's duty under this division if the | 7695 |
officer has done both of the following: | 7696 |
(1) Implemented the policy adopted by the board under section | 7697 |
3309.157 of the Revised Code that outlines the criteria used to | 7698 |
select agents that execute securities transactions on behalf of | 7699 |
the school employees retirement system. | 7700 |
(2) Reviewed, at least annually, the performance of agents | 7701 |
that execute securities transactions on behalf of the school | 7702 |
employees retirement system. | 7703 |
Sec. 3309.044. The school employees retirement board shall | 7704 |
appoint a committee to oversee the selection of an internal | 7705 |
auditor. The committee shall select one or more persons for | 7706 |
employment as an internal auditor. The board shall employ the | 7707 |
person or persons selected by the committee. | 7708 |
The committee shall consist of the following board members: | 7709 |
one retirant member, one employee member, and one other member. | 7710 |
The committee shall annually prepare and submit to the Ohio | 7711 |
retirement study council a report of its actions during the | 7712 |
preceding year. | 7713 |
Sec. 3309.05. The school employees retirement board shall | 7714 |
consist of the following | 7715 |
(A) | 7716 |
of state's investment designee, who shall be appointed by the | 7717 |
treasurer of state for a term of four years and who shall have the | 7718 |
following qualifications: | 7719 |
(a) The member is a resident of this state. | 7720 |
(b) Within the three years immediately preceding the | 7721 |
appointment, the member has not been employed by the public | 7722 |
employees retirement system, police and fire pension fund, state | 7723 |
teachers retirement system, school employees retirement system, or | 7724 |
state highway patrol retirement system or by any person, | 7725 |
partnership, or corporation that has provided to one of those | 7726 |
retirement systems services of a financial or investment nature, | 7727 |
including the management, analysis, supervision, or investment of | 7728 |
assets. | 7729 |
(c) The member has direct experience in the management, | 7730 |
analysis, supervision, or investment of assets. | 7731 |
(d) The member is not currently employed by the state or a | 7732 |
political subdivision of the state. | 7733 |
(B) | 7734 |
| 7735 |
members of the school employees retirement system, and who shall | 7736 |
be elected by ballot by the members of the system; | 7737 |
| 7738 |
members, who shall be
| 7739 |
system who | 7740 |
7741 | |
disability benefit, or benefits under a plan established under | 7742 |
section 3309.81 of the Revised Code. The
retirant | 7743 |
shall be elected by ballot by former members of the system who are | 7744 |
currently receiving an age and service retirement benefit, a | 7745 |
disability benefit, or benefits under a plan established under | 7746 |
section 3309.81 of the Revised Code. | 7747 |
(D)(1) Two members, known as the investment expert members, | 7748 |
who shall be appointed to four-year terms. One investment expert | 7749 |
member shall be appointed by the governor, and one investment | 7750 |
expert member shall be jointly appointed by the speaker of the | 7751 |
house of representatives and the president of the senate. Each | 7752 |
investment expert member shall have the following qualifications: | 7753 |
(a) The member is a resident of this state; | 7754 |
(b) Within the three years immediately preceding the | 7755 |
appointment, the member has not been employed by the public | 7756 |
employees state retirement system, police and fire pension fund, | 7757 |
state teachers retirement system, school employees retirement | 7758 |
system, or state highway patrol retirement system or by any | 7759 |
person, partnership, or corporation that has provided to one of | 7760 |
those retirement systems services of a financial or investment | 7761 |
nature, including the management, analysis, supervision, or | 7762 |
investment of assets; | 7763 |
(c) The member has direct experience in the management, | 7764 |
analysis, supervision, or investment of assets. | 7765 |
(2) Any investment expert member appointed to fill a vacancy | 7766 |
occurring prior to the expiration of the term for which the | 7767 |
member's predecessor was appointed holds office until the end of | 7768 |
such term. The member continues in office subsequent to the | 7769 |
expiration date of the member's term until the member's successor | 7770 |
takes office, or until a period of sixty days has elapsed, | 7771 |
whichever occurs first. | 7772 |
Sec. 3309.051. Each newly elected member of the school | 7773 |
employees retirement board and each individual appointed to fill a | 7774 |
vacancy on the board shall, not later than ninety days after | 7775 |
commencing service as a board member, complete the orientation | 7776 |
program component of the retirement board member education program | 7777 |
established under section 171.50 of the Revised Code. | 7778 |
Each member of the board who has served a year or longer as a | 7779 |
board member shall, not less than twice each year, attend one or | 7780 |
more programs that are part of the continuing education component | 7781 |
of the retirement board member education program established under | 7782 |
section 171.50 of the Revised Code. | 7783 |
Sec. 3309.052. A person who served as an elected or appointed | 7784 |
member of the school employees retirement board for one or more | 7785 |
entire fiscal years in fiscal years 2000, 2001, or 2002 is | 7786 |
ineligible for re-election or reappointment to the board if the | 7787 |
board paid travel-related expenses of the person or reimbursed the | 7788 |
person for travel-related expenses that averaged more than ten | 7789 |
thousand dollars annually for those fiscal years. | 7790 |
Sec. 3309.06. (A) Elections for employee and retirant members | 7791 |
of the school employees retirement board shall be held on the | 7792 |
first Monday of March. Terms of office of the employee and | 7793 |
retirant members | 7794 |
four years each, commencing on the first day of July following the | 7795 |
election and ending on the thirtieth day of June. The initial | 7796 |
terms of the first retirant member and the new employee member | 7797 |
shall commence on July 1, 1984, and end on June 30, 1988. | 7798 |
7799 |
(B) The initial election of the second retirant member shall | 7800 |
be held at the first election that occurs later than ninety days | 7801 |
after the effective date of this amendment. Subsequent elections | 7802 |
shall be held each fourth year thereafter. | 7803 |
(C) If a vacancy occurs during the
| 7804 |
7805 | |
7806 | |
7807 | |
the election results in accordance with rules adopted under | 7808 |
section 3309.075 of the Revised Code, the successor member shall | 7809 |
hold office until the next board election that occurs not less | 7810 |
than ninety days after the successor member's election. The | 7811 |
successor member shall qualify for board membership under the same | 7812 |
division of section 3309.05 of the Revised Code as the member's | 7813 |
predecessor in office. Elections under this division shall be | 7814 |
conducted in accordance with rules adopted under section 3309.075 | 7815 |
of the Revised Code. | 7816 |
(D) Employee members or | 7817 |
board who fail to attend the meetings of the board for four months | 7818 |
or longer, without being excused, shall be considered as having | 7819 |
resigned and successors shall be elected for their unexpired terms | 7820 |
pursuant to division (C) of this section. If as a result of | 7821 |
changed circumstances the retirant member would no longer qualify | 7822 |
for
membership on the board as | 7823 |
shall be considered vacant, and a successor retirant member shall | 7824 |
be elected pursuant to division (C) of this section. | 7825 |
Sec. 3309.061. (A) The office of an employee member or | 7826 |
retirant member of the school employees retirement board who is | 7827 |
convicted of or pleads guilty to a felony, a theft offense as | 7828 |
defined in section 2913.01 of the Revised Code, or a violation of | 7829 |
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, | 7830 |
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code | 7831 |
shall be deemed vacant. A person who has pleaded guilty to or been | 7832 |
convicted of an offense of that nature is ineligible for election | 7833 |
to the office of employee or retirant member of the school | 7834 |
employees retirement board. | 7835 |
(B) A member of the school employees retirement board who | 7836 |
willfully and flagrantly exercises authority or power not | 7837 |
authorized by law, refuses or willfully neglects to enforce the | 7838 |
law or to perform any official duty imposed by law, or is guilty | 7839 |
of gross neglect of duty, gross immorality, drunkenness, | 7840 |
misfeasance, malfeasance, or nonfeasance is guilty of misconduct | 7841 |
in office. On complaint and hearing in the manner provided for in | 7842 |
this section, the board member shall have judgment of forfeiture | 7843 |
of the office with all its emoluments entered against the board | 7844 |
member, creating in the office a vacancy to be filled as provided | 7845 |
by law. | 7846 |
(C) Proceedings for removal of a board member on any of the | 7847 |
grounds enumerated in division (B) of this section shall be | 7848 |
commenced by filing with the court of appeals of the district in | 7849 |
which the board member resides a written complaint specifically | 7850 |
setting forth the charge. The complaint shall be accepted if | 7851 |
signed by the governor or signed as follows: | 7852 |
(1) If the complaint is against an employee member of the | 7853 |
board, the complaint must be signed by a number of members of the | 7854 |
retirement system that equals at least the following and must | 7855 |
include signatures of at least twenty employee members residing in | 7856 |
at least five different counties: | 7857 |
(a) If the employee member was most recently elected in | 7858 |
accordance with division (B) of section 3309.07 of the Revised | 7859 |
Code, ten per cent of the number of members of the system who | 7860 |
voted in that election; | 7861 |
(b) If the employee member most recently became a member of | 7862 |
the board pursuant to section 3309.06 of the Revised Code to fill | 7863 |
a vacancy in the board or took office in accordance with section | 7864 |
3309.061 of the Revised Code, ten per cent of the number of | 7865 |
members of the system who voted in the most recent election held | 7866 |
in accordance with division (B) of section 3309.07 of the Revised | 7867 |
Code for that employee member position on the board. | 7868 |
(2) If the complaint is against a retirant member of the | 7869 |
board, the complaint must be signed by a number of system | 7870 |
retirants that equals at least the following and must include | 7871 |
signatures of at least twenty retirant members residing in at | 7872 |
least five different counties: | 7873 |
(a) If the retirant member was most recently elected in | 7874 |
accordance with division (C) of section 3309.07 of the Revised | 7875 |
Code, ten per cent of the number of former members of the system | 7876 |
who voted in that election; | 7877 |
(b) If the retirant member most recently became a member of | 7878 |
the board pursuant to section 3309.06 of the Revised Code to fill | 7879 |
a vacancy in the board or took office in accordance with section | 7880 |
3309.061 of the Revised Code, ten per cent of the number of former | 7881 |
members of the system who voted in the most recent election held | 7882 |
in accordance with division (C) of section 3309.07 of the Revised | 7883 |
Code for that retirant member position on the board. | 7884 |
(D) The clerk of the court of appeals in which a complaint | 7885 |
against a board member is filed under division (C) of this section | 7886 |
shall do both of the following with respect to the complaint: | 7887 |
(1) Submit the signatures obtained pursuant to division (C) | 7888 |
of this section to the board for purposes of verifying the | 7889 |
validity of the signatures. The board shall verify the validity of | 7890 |
the signatures and report its findings to the court. | 7891 |
(2) Cause a copy of the complaint to be served on the board | 7892 |
member at least ten days before the hearing on the complaint. The | 7893 |
court shall hold a public hearing not later than thirty days after | 7894 |
the filing of the complaint. The court may subpoena witnesses and | 7895 |
compel their attendance in the same manner as in civil cases. | 7896 |
Process shall be served by the sheriff of the county in which the | 7897 |
witness resides. Witness fees and other fees in connection with | 7898 |
the proceedings shall be the same as in civil cases. The court may | 7899 |
suspend the board member pending the hearing. | 7900 |
If the court finds that one or more of the charges in the | 7901 |
complaint are true, it shall make a finding for removal of the | 7902 |
board member. The court's finding shall include a full detailed | 7903 |
statement of the reasons for the removal. The finding shall be | 7904 |
filed with the clerk of the court and be made a matter of public | 7905 |
record. | 7906 |
The board member has the right of review or appeal to the | 7907 |
supreme court on leave first obtained. The supreme court shall | 7908 |
hear the case in not more than thirty court days after granting | 7909 |
leave. In other respects, the hearing shall follow the regular | 7910 |
procedure in appealable cases that originate in the court of | 7911 |
appeals. | 7912 |
(E) No individual who has been removed from the board | 7913 |
pursuant to this section shall be eligible to fill an elective or | 7914 |
appointed position as a member of the board. | 7915 |
Sec. 3309.07. (A) All elections for employee or retirant | 7916 |
members of the school employees retirement board shall be held | 7917 |
under the direction of the board in accordance with rules adopted | 7918 |
under section 3309.075 of the Revised Code. | 7919 |
(B) Any member of the school employees retirement system, | 7920 |
other than a disability benefit recipient, shall be eligible to be | 7921 |
nominated for election as an employee member of the board who has | 7922 |
been nominated by a petition that is signed by at least five | 7923 |
hundred members | 7924 |
accordance with rules adopted under section 3309.075 of the | 7925 |
Revised Code. The petition shall contain the signatures of not | 7926 |
less than twenty | 7927 |
wherein such members are employed. The petition shall specify the | 7928 |
term of office and position. The name of any member so nominated | 7929 |
shall be placed upon the ballot by the board as a regular | 7930 |
candidate. Other names of eligible candidates may at any election | 7931 |
be substituted for the regular candidates by writing such names | 7932 |
upon the ballot. The candidate receiving the highest number of | 7933 |
votes for any term as member of the board shall be elected for | 7934 |
such term on certification of the election results in accordance | 7935 |
with rules adopted under section 3309.075 of the Revised Code. In | 7936 |
any year in which two employee member or two retirant member | 7937 |
positions must be filled, the candidates who receive the highest | 7938 |
and second highest number of votes shall be elected to the offices | 7939 |
on certification of the election results in accordance with rules | 7940 |
adopted under section 3309.075 of the Revised Code. | 7941 |
(C) Any former member of the school employees retirement | 7942 |
system described in division (D) of section 3309.05 of the Revised | 7943 |
Code is eligible for
election as | 7944 |
board to represent former members currently receiving an age and | 7945 |
service retirement benefit, a disability benefit, or benefits | 7946 |
under a plan established under section 3309.81 of the Revised | 7947 |
Code, provided that such person has been nominated by a petition | 7948 |
that is certified in accordance with rules adopted under section | 7949 |
3309.075 of the Revised Code and signed by at least one hundred | 7950 |
fifty former members of the system who are currently receiving an | 7951 |
age and service retirement benefit, a disability benefit, or | 7952 |
benefits under a plan established under section 3309.81 of the | 7953 |
Revised Code. The petition shall contain the signatures of at | 7954 |
least ten such recipients from each of at least five counties | 7955 |
wherein recipients of benefits from this system reside. The | 7956 |
petition shall specify the term of office and position. The name | 7957 |
of any person so nominated shall be placed upon the ballot by the | 7958 |
board as a regular candidate. Other names of eligible candidates | 7959 |
may at any election be substituted for the regular candidates by | 7960 |
writing such names upon the ballot. The candidate receiving the | 7961 |
highest number of votes for any term as member of the board shall | 7962 |
be elected for such term on certification of the election results | 7963 |
in accordance with rules adopted under section 3309.075 of the | 7964 |
Revised Code. | 7965 |
No employee member of the board who retires while a member of | 7966 |
the board shall be eligible to become a retirant member of the | 7967 |
board for three years after the date of the member's retirement. | 7968 |
| 7969 |
3309.06, and 3309.07 of the Revised Code, the school employees | 7970 |
retirement board is not required to hold an election for a | 7971 |
position on the board as an employee member or retirant member if | 7972 |
only one candidate has been nominated for the position by petition | 7973 |
in accordance with section 3309.07 of the Revised Code. The | 7974 |
candidate shall take office as if elected. The term of office | 7975 |
shall be four years beginning on the first day of July following | 7976 |
the date the candidate was nominated. | 7977 |
Sec. 3309.072. (A) As used in this section: | 7978 |
(1) "Campaign committee" means a candidate or a combination | 7979 |
of two or more persons authorized by a candidate to receive | 7980 |
contributions and in-kind contributions and make expenditures on | 7981 |
behalf of the candidate. | 7982 |
(2) "Candidate" means an individual who has been nominated | 7983 |
pursuant to section 3309.07 of the Revised Code for election to | 7984 |
the school employees retirement board or who is seeking to be | 7985 |
elected to fill a vacancy on the board pursuant to division (D) of | 7986 |
section 3309.06 of the Revised Code. | 7987 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 7988 |
of indebtedness, donation, advance, payment, transfer of funds or | 7989 |
transfer of anything of value including a transfer of funds from | 7990 |
an inter vivos or testamentary trust or decedent's estate, and the | 7991 |
payment by any person other than the person to whom the services | 7992 |
are rendered for the personal services of another person, which | 7993 |
contribution is made, received, or used for the purpose of | 7994 |
influencing the results of an election to the school employees | 7995 |
retirement board under section 3309.07 of the Revised Code or the | 7996 |
results of an election to fill a vacancy on the board pursuant to | 7997 |
division (C) of section 3309.06 of the Revised Code. | 7998 |
"Contribution" does not include: | 7999 |
(a) Services provided without compensation by individuals | 8000 |
volunteering a portion or all of their time on behalf of a person; | 8001 |
(b) Ordinary home hospitality; | 8002 |
(c) The personal expenses of a volunteer paid for by that | 8003 |
volunteer campaign worker. | 8004 |
(4) "Election day" means the following, as appropriate to the | 8005 |
situation: | 8006 |
(a) The first Monday in March of a year for which section | 8007 |
3309.06 of the Revised Code specifies that an election for a | 8008 |
member of the school employees retirement board be held; | 8009 |
(b) If, pursuant to section 3309.071 of the Revised Code, no | 8010 |
election is held, the first Monday in March of a year that the | 8011 |
election would have been held if not for section 3309.071 of the | 8012 |
Revised Code. | 8013 |
(5) "Expenditure" means the disbursement or use of a | 8014 |
contribution for the purpose of influencing the results of an | 8015 |
election to the school employees retirement board under section | 8016 |
3309.07 of the Revised Code or the results of an election to fill | 8017 |
a vacancy on the board pursuant to division (D) of section 3309.06 | 8018 |
of the Revised Code. | 8019 |
(6) "Independent expenditure" means an expenditure by an | 8020 |
individual, partnership, or other entity advocating the election | 8021 |
or defeat of an identified candidate or candidates, that is not | 8022 |
made with the consent of, in coordination, cooperation, or | 8023 |
consultation with, or at the request or suggestion of any | 8024 |
candidate or candidates or of the campaign committee or agent of | 8025 |
the candidate or candidates. An independent expenditure shall not | 8026 |
be construed as being a contribution. As used in division (A)(6) | 8027 |
of this section: | 8028 |
(a) "Advocating" means any communication containing a message | 8029 |
advocating election or defeat. | 8030 |
(b) "Identified candidate" means that the name of the | 8031 |
candidate appears, a photograph or drawing of the candidate | 8032 |
appears, or the identity of the candidate is otherwise apparent by | 8033 |
unambiguous reference. | 8034 |
(c) "Made in coordination, cooperation, or consultation with, | 8035 |
or at the request or suggestion of, any candidate or the campaign | 8036 |
committee or agent of the candidate" means made pursuant to any | 8037 |
arrangement, coordination, or direction by the candidate, the | 8038 |
candidate's campaign committee, or the candidate's agent prior to | 8039 |
the publication, distribution, display, or broadcast of the | 8040 |
communication. An expenditure is presumed to be so made when it is | 8041 |
any of the following: | 8042 |
(i) Based on information about the candidate's plans, | 8043 |
projects, or needs provided to the person making the expenditure | 8044 |
by the candidate, or by the candidate's campaign committee or | 8045 |
agent, with a view toward having an expenditure made; | 8046 |
(ii) Made by or through any person who is, or has been, | 8047 |
authorized to raise or expend funds, who is, or has been, an | 8048 |
officer of the candidate's campaign committee, or who is, or has | 8049 |
been, receiving any form of compensation or reimbursement from the | 8050 |
candidate or the candidate's campaign committee or agent; | 8051 |
(iii) Made by a political party in support of a candidate, | 8052 |
unless the expenditure is made by a political party to conduct | 8053 |
voter registration or voter education efforts. | 8054 |
(d) "Agent" means any person who has actual oral or written | 8055 |
authority, either express or implied, to make or to authorize the | 8056 |
making of expenditures on behalf of a candidate, or means any | 8057 |
person who has been placed in a position with the candidate's | 8058 |
campaign committee or organization such that it would reasonably | 8059 |
appear that in the ordinary course of campaign-related activities | 8060 |
the person may authorize expenditures. | 8061 |
(7) "In-kind contribution" means anything of value other than | 8062 |
money that is used to influence the results of an election to the | 8063 |
school employees retirement board under section 3309.07 of the | 8064 |
Revised Code or the results of an election to fill a vacancy on | 8065 |
the board pursuant to division (C) of section 3309.06 of the | 8066 |
Revised Code or is transferred to or used in support of or in | 8067 |
opposition to a candidate and that is made with the consent of, in | 8068 |
coordination, cooperation, or consultation with, or at the request | 8069 |
or suggestion of the benefited candidate. The financing of the | 8070 |
dissemination, distribution, or republication, in whole or part, | 8071 |
of any broadcast or of any written, graphic, or other form of | 8072 |
campaign materials prepared by the candidate, the candidate's | 8073 |
campaign committee, or their authorized agents is an in-kind | 8074 |
contribution to the candidate and an expenditure by the candidate. | 8075 |
(8) "Personal expenses" includes ordinary expenses for | 8076 |
accommodations, clothing, food, personal motor vehicle or | 8077 |
airplane, and home telephone. | 8078 |
(B) Except as otherwise provided in division (D) of this | 8079 |
section, each candidate who, or whose campaign committee, receives | 8080 |
contributions or in-kind contributions totaling one thousand | 8081 |
dollars or more or has expenditures totaling one thousand dollars | 8082 |
or more in connection with the candidate's efforts to be elected | 8083 |
to the school employees retirement board shall file with the | 8084 |
secretary of state two complete, accurate, and itemized statements | 8085 |
setting forth in detail the contributions, in-kind contributions, | 8086 |
and expenditures. The statements shall be filed regardless of | 8087 |
whether, pursuant to section 3309.071 of the Revised Code, no | 8088 |
election is held. The statements shall be made on a form | 8089 |
prescribed under section 111.30 of the Revised Code. Every | 8090 |
expenditure shall be vouched for by a receipted bill, stating the | 8091 |
purpose of the expenditures, that shall be filed with the | 8092 |
statement; a canceled check with a notation of the purpose of the | 8093 |
expenditure is a receipted bill for purposes of this division. | 8094 |
The first statement shall be filed not later than four p.m. | 8095 |
on the day that is twelve days before election day. The second | 8096 |
statement shall be filed not sooner than the day that is eight | 8097 |
days after election day and not later than thirty-eight days after | 8098 |
election day. The first statement shall reflect contributions and | 8099 |
in-kind contributions received and expenditures made to the close | 8100 |
of business on the twentieth day before election day. The second | 8101 |
statement shall reflect contributions and in-kind contributions | 8102 |
received and expenditures made during the period beginning on the | 8103 |
nineteenth day before election day and ending on the close of | 8104 |
business on the seventh day after election day. | 8105 |
(C) Each individual, partnership, or other entity who makes | 8106 |
an independent expenditure in connection with the candidate's | 8107 |
efforts to be elected to the school employees retirement board | 8108 |
shall file with the secretary of state two complete, accurate, and | 8109 |
itemized statements setting forth in detail the independent | 8110 |
expenditures. The statements shall be filed regardless of whether, | 8111 |
pursuant to section 3309.071 of the Revised Code, no election is | 8112 |
held. The statements shall be made on a form prescribed under | 8113 |
section 111.30 of the Revised Code. | 8114 |
The first statement shall be filed not later than four p.m. | 8115 |
on the day that is twelve days before election day. The second | 8116 |
statement shall be filed not sooner than the day that is eight | 8117 |
days after election day and not later than thirty-eight days after | 8118 |
election day. The first statement shall reflect independent | 8119 |
expenditures made to the close of business on the twentieth day | 8120 |
before election day. The second statement shall reflect | 8121 |
independent expenditures made during the period beginning on the | 8122 |
nineteenth day before election day and ending on the close of | 8123 |
business on the seventh day after election day. | 8124 |
(D) Each candidate who, or whose campaign committee, receives | 8125 |
a contribution or in-kind contribution or makes an expenditure in | 8126 |
connection with the candidate's efforts to be elected to fill a | 8127 |
vacancy in the state teachers retirement board pursuant to | 8128 |
division (C) of section 3309.06 of the Revised Code shall file | 8129 |
with the secretary of state a complete, accurate, and itemized | 8130 |
statement setting forth in detail the contributions, in-kind | 8131 |
contributions, and expenditures. The statement shall be made on a | 8132 |
form prescribed under section 111.30 of the Revised Code. Every | 8133 |
expenditure shall be vouched for by a receipted bill, stating the | 8134 |
purpose of the expenditures, that shall be filed with the | 8135 |
statement; a canceled check with a notation of the purpose of the | 8136 |
expenditure is a receipted bill for purposes of this division. | 8137 |
The statement shall be filed within thirty-eight days after | 8138 |
the day the candidate takes office. The statement shall reflect | 8139 |
contributions and in-kind contributions received and expenditures | 8140 |
made to the close of business on the seventh day after the day the | 8141 |
candidate takes office. | 8142 |
Sec. 3309.073. (A) No person shall knowingly fail to file a | 8143 |
complete and accurate campaign finance statement or independent | 8144 |
expenditure statement in accordance with section 3309.072 of the | 8145 |
Revised Code. | 8146 |
(B) No person, during the course of a person seeking | 8147 |
nomination for, and during any campaign for, election to the | 8148 |
school employees retirement board, shall knowingly and with intent | 8149 |
to affect the nomination or the outcome of the campaign do any of | 8150 |
the following by means of campaign materials, an advertisement on | 8151 |
radio or television or in a newspaper or periodical, a public | 8152 |
speech, press release, or otherwise: | 8153 |
(1) With regard to a candidate, identify the candidate in a | 8154 |
manner that implies that the candidate is a member of the board or | 8155 |
use the term "re-elect" when the candidate is not currently a | 8156 |
member of the board; | 8157 |
(2) Make a false statement concerning the formal schooling or | 8158 |
training completed or attempted by a candidate; a degree, diploma, | 8159 |
certificate, scholarship, grant, award, prize, or honor received, | 8160 |
earned, or held by a candidate; or the period of time during which | 8161 |
a candidate attended any school, college, community technical | 8162 |
school, or institution; | 8163 |
(3) Make a false statement concerning the professional, | 8164 |
occupational, or vocational licenses held by a candidate, or | 8165 |
concerning any position the candidate held for which the candidate | 8166 |
received a salary or wages; | 8167 |
(4) Make a false statement that a candidate or board member | 8168 |
has been indicted or convicted of a theft offense, extortion, or | 8169 |
other crime involving financial corruption or moral turpitude; | 8170 |
(5) Make a statement that a candidate has been indicted for | 8171 |
any crime or has been the subject of a finding by the Ohio | 8172 |
elections commission without disclosing the outcome of any legal | 8173 |
proceedings resulting from the indictment or finding; | 8174 |
(6) Make a false statement that a candidate or board member | 8175 |
has a record of treatment or confinement for mental disorder; | 8176 |
(7) Make a false statement that a candidate or board member | 8177 |
has been subjected to military discipline for criminal misconduct | 8178 |
or dishonorably discharged from the armed services; | 8179 |
(8) Falsely identify the source of a statement, issue | 8180 |
statements under the name of another person without authorization, | 8181 |
or falsely state the endorsement of or opposition to a candidate | 8182 |
by a person or publication; | 8183 |
(9) Make a false statement concerning the voting record of a | 8184 |
candidate or board member; | 8185 |
(10) Post, publish, circulate, distribute, or otherwise | 8186 |
disseminate a false statement concerning a candidate, either | 8187 |
knowing the same to be false or with reckless disregard of whether | 8188 |
it was false or not, if the statement is designed to promote the | 8189 |
election, nomination, or defeat of the candidate. | 8190 |
Sec. 3309.074. The secretary of state, or any person acting | 8191 |
on personal knowledge and subject to the penalties of perjury, may | 8192 |
file a complaint with the Ohio elections commission alleging a | 8193 |
violation of section 3309.073 of the Revised Code. The complaint | 8194 |
shall be made on a form prescribed and provided by the commission. | 8195 |
On receipt of a complaint under this section, the commission | 8196 |
shall hold a hearing open to the public to determine whether the | 8197 |
violation alleged in the complaint has occurred. The commission | 8198 |
may administer oaths and issue subpoenas to any person in the | 8199 |
state compelling the attendance of witnesses and the production of | 8200 |
relevant papers, books, accounts, and reports. On the refusal of | 8201 |
any person to obey a subpoena or to be sworn or to answer as a | 8202 |
witness, the commission may apply to the court of common pleas of | 8203 |
Franklin county under section 2705.03 of the Revised Code. The | 8204 |
court shall hold contempt proceedings in accordance with Chapter | 8205 |
2705. of the Revised Code. | 8206 |
The commission shall provide the person accused of the | 8207 |
violation at least seven days prior notice of the time, date, and | 8208 |
place of the hearing. The accused may be represented by an | 8209 |
attorney and shall have an opportunity to present evidence, call | 8210 |
witnesses, and cross-examine witnesses. | 8211 |
At the hearing, the commission shall determine whether the | 8212 |
violation alleged in the complaint has occurred. If the commission | 8213 |
determines that a violation of division (A) of section 3309.073 of | 8214 |
the Revised Code has occurred, the commission shall either impose | 8215 |
a fine under section 3309.99 of the Revised Code or enter a | 8216 |
finding that good cause has been shown not to impose the fine. If | 8217 |
the commission determines that a violation of division (B) of | 8218 |
section 3309.073 of the Revised Code has occurred, the commission | 8219 |
shall impose the fine described in section 3309.99 of the Revised | 8220 |
Code, refer the matter to the appropriate prosecutor, or enter a | 8221 |
finding that good cause has been shown to not impose a fine or | 8222 |
refer the matter to the appropriate prosecutor. | 8223 |
Sec. 3309.075. (A) The school employees retirement board, | 8224 |
after consultation with the secretary of state, shall adopt rules | 8225 |
in accordance with Chapter 119. of the Revised Code, governing all | 8226 |
of the following: | 8227 |
(1) The administration of elections of members of the board | 8228 |
under section 3309.07 of the Revised Code and elections held under | 8229 |
section 3309.06 of the Revised Code to fill vacancies on the | 8230 |
board; | 8231 |
(2) Nominating petitions for the elections; | 8232 |
(3) Certification of the validity of nominating petitions for | 8233 |
the elections; | 8234 |
(4) Certification of the results of the elections. | 8235 |
(B) The board may contract with the secretary of state or an | 8236 |
independent firm to administer the elections, certify the validity | 8237 |
of nominating petitions, and certify the results of the elections. | 8238 |
The secretary of state and the independent firm shall perform | 8239 |
these services in accordance with the rules adopted under division | 8240 |
(A) of this section. Notwithstanding section 3309.22 of the | 8241 |
Revised Code, the board shall provide information necessary for | 8242 |
the secretary of state or the independent firm to certify the | 8243 |
election. If the board contracts with an independent firm to | 8244 |
administer an election, the secretary of state may audit the | 8245 |
election. | 8246 |
Sec. 3309.09. | 8247 |
employees retirement board constitutes a quorum for the | 8248 |
transaction of any business. Any action taken by the board shall | 8249 |
be approved by | 8250 |
board. All meetings of the board shall be open to the public | 8251 |
except executive sessions as set forth in division (G) of section | 8252 |
121.22 of the Revised Code, and any portions of any sessions | 8253 |
discussing medical records or the degree of disability of a member | 8254 |
excluded from public inspection by section 3309.22 of the Revised | 8255 |
Code. | 8256 |
Sec. 3309.14. The school employees retirement board shall | 8257 |
secure the service of such technical and administrative employees | 8258 |
as are necessary for the transaction of the business of the school | 8259 |
employees retirement system. | 8260 |
Effective ninety days after the effective date of this | 8261 |
amendment, the board may not employ a state retirement system | 8262 |
investment officer, as defined in section 1707.01 of the Revised | 8263 |
Code, who does not hold a valid state retirement system investment | 8264 |
officer license issued by the division of securities in the | 8265 |
department of commerce. | 8266 |
The compensation of all persons engaged by the board and all | 8267 |
other expenses of the board necessary for the proper operation of | 8268 |
the system shall be paid at such rates and in such amounts as the | 8269 |
board approves. Every expense voucher of an employee, officer, or | 8270 |
board member of the school employees retirement system shall | 8271 |
itemize all purchases and expenditures. | 8272 |
The board shall receive and act upon all applications for | 8273 |
retirement under Chapter 3309. of the Revised Code, and shall | 8274 |
provide for the payment of all retirement allowances and other | 8275 |
benefits and shall make other expenditures required or authorized | 8276 |
by this chapter. | 8277 |
Sec. 3309.15. (A) The members of the school employees | 8278 |
retirement board shall be the trustees of the funds created by | 8279 |
section 3309.60 of the Revised Code. The board shall have full | 8280 |
power to invest the funds. The board and other fiduciaries shall | 8281 |
discharge their duties with respect to the funds solely in the | 8282 |
interest of the participants and beneficiaries; for the exclusive | 8283 |
purpose of providing benefits to participants and their | 8284 |
beneficiaries and defraying reasonable expenses of administering | 8285 |
the school employees retirement system; with care, skill, | 8286 |
prudence, and diligence under the circumstances then prevailing | 8287 |
that a prudent person acting in a like capacity and familiar with | 8288 |
such matters would use in the conduct of an enterprise of a like | 8289 |
character and with like aims; and by diversifying the investments | 8290 |
of the system so as to minimize the risk of large losses, unless | 8291 |
under the circumstances it is clearly prudent not to do so. | 8292 |
The board may establish a partnership, trust, limited | 8293 |
liability company, corporation, including a corporation exempt | 8294 |
from taxation under the Internal Revenue Code, 100 Stat. 2085, 26 | 8295 |
U.S.C.A. 1, as amended, or any other legal entity authorized to | 8296 |
transact business in this state. | 8297 |
(B) In exercising its fiduciary responsibility with respect | 8298 |
to the investment of the funds, it shall be the intent of the | 8299 |
board to give consideration to investments that enhance the | 8300 |
general welfare of the state and its citizens where the | 8301 |
investments offer quality, return, and safety comparable to other | 8302 |
investments currently available to the board. In fulfilling this | 8303 |
intent, equal consideration shall also be given to investments | 8304 |
otherwise qualifying under this section that involve minority | 8305 |
owned and controlled firms and firms owned and controlled by | 8306 |
women, either alone or in joint venture with other firms. | 8307 |
The board shall adopt, in regular meeting, policies, | 8308 |
objectives, or criteria for the operation of the investment | 8309 |
program that include asset allocation targets and ranges, risk | 8310 |
factors, asset class benchmarks, time horizons, total return | 8311 |
objectives, and performance evaluation guidelines. In adopting | 8312 |
policies and criteria for the selection of agents with whom the | 8313 |
board may contract for the administration of the funds, the board | 8314 |
shall comply with sections 3309.157 and 3309.159 of the Revised | 8315 |
Code and shall also give equal consideration to minority owned and | 8316 |
controlled firms, firms owned and controlled by women, and | 8317 |
ventures involving minority owned and controlled firms and firms | 8318 |
owned and controlled by women that otherwise meet the policies and | 8319 |
criteria established by the board. Amendments and additions to the | 8320 |
policies and criteria shall be adopted in regular meeting. The | 8321 |
board shall publish its policies, objectives, and criteria under | 8322 |
this provision no less often than annually and shall make copies | 8323 |
available to interested parties. | 8324 |
When reporting on the performance of investments, the board | 8325 |
shall comply with the performance presentation standards | 8326 |
established by the association for investment management and | 8327 |
research. | 8328 |
(C) All evidences of title of investments purchased by the | 8329 |
board under this section shall be delivered to the treasurer of | 8330 |
state, who is hereby designated as custodian thereof, or to the | 8331 |
treasurer of state's authorized agent, and the treasurer of state | 8332 |
or the agent shall collect principal, interest, dividends, and | 8333 |
distributions that become due and payable and place the same when | 8334 |
so collected into the custodial funds. Evidences of title of the | 8335 |
investments may be deposited by the treasurer of state for | 8336 |
safekeeping with an authorized agent, selected by the treasurer of | 8337 |
state, who is a qualified trustee under section 135.18 of the | 8338 |
Revised Code. The treasurer of state shall pay for the investments | 8339 |
purchased by the board pending receipt of the evidence of title of | 8340 |
the investments by the treasurer of state or to the treasurer of | 8341 |
state's authorized agent, and on receipt of written or electronic | 8342 |
instructions from the board or the board's designated agent | 8343 |
authorizing the purchase. The board may sell any investments held | 8344 |
by the board, and the treasurer of state or the treasurer of | 8345 |
state's authorized agent shall accept payment from the purchaser | 8346 |
and deliver evidence of title of the investment to the purchaser | 8347 |
on receipt of written or electronic instructions from the board or | 8348 |
the board's designated agent authorizing the sale, and pending | 8349 |
receipt of the moneys for the investments. The amount received | 8350 |
shall be placed into the custodial funds. The board and the | 8351 |
treasurer of state may enter into agreements to establish | 8352 |
procedures for the purchase and sale of investments under this | 8353 |
division and the custody of the investment. | 8354 |
(D) No purchase or sale of any investment shall be made under | 8355 |
this section except as authorized by the school employees | 8356 |
retirement board. | 8357 |
(E) Any statement of financial position distributed by the | 8358 |
board shall include the fair value, as of the statement date, of | 8359 |
all investments held by the board under this section. | 8360 |
Sec. 3309.157. (A) As used in this section and in section | 8361 |
3309.159 of the Revised Code: | 8362 |
(1) "Agent" means a dealer, as defined in section 1707.01 of | 8363 |
the Revised Code, who is licensed under sections 1707.01 to | 8364 |
1707.45 of the Revised Code or under comparable laws of another | 8365 |
state or of the United States. | 8366 |
(2) "Minority business enterprise" has the same meaning as in | 8367 |
section 122.71 of the Revised Code. | 8368 |
(3) "Ohio-qualified agent" means an agent designated as such | 8369 |
by the school employees retirement board. | 8370 |
(4) "Ohio-qualified investment manager" means an investment | 8371 |
manager designated as such by the school employees retirement | 8372 |
board. | 8373 |
(5) "Principal place of business" means an office in which | 8374 |
the agent regularly provides securities or investment advisory | 8375 |
services and solicits, meets with, or otherwise communicates with | 8376 |
clients. | 8377 |
(B) The school employees retirement board shall, for the | 8378 |
purposes of this section, designate an agent as an Ohio-qualified | 8379 |
agent if the agent meets all of the following requirements: | 8380 |
(1) The agent is subject to taxation under Chapter 5725., | 8381 |
5733., or 5747. of the Revised Code. | 8382 |
(2) The agent is authorized to conduct business in this | 8383 |
state. | 8384 |
(3) The agent maintains a principal place of business in this | 8385 |
state and employees at least five residents of this state. | 8386 |
(C) The school employees retirement board shall adopt and | 8387 |
implement a written policy to establish criteria and procedures | 8388 |
used to select agents to execute securities transactions on behalf | 8389 |
of the retirement system. The policy shall address each of the | 8390 |
following: | 8391 |
(a) Commissions charged by the agent, both in the aggregate | 8392 |
and on a per share basis; | 8393 |
(b) The execution speed and trade settlement capabilities of | 8394 |
the agent; | 8395 |
(c) The responsiveness, reliability, and integrity of the | 8396 |
agent; | 8397 |
(d) The nature and value of research provided by the agent; | 8398 |
(e) Any special capabilities of the agent. | 8399 |
(D)(1) The board shall, at least annually, establish a policy | 8400 |
with the goal to increase utilization by the board of | 8401 |
Ohio-qualified agents for the execution of domestic equity and | 8402 |
fixed income trades on behalf of the retirement system, when an | 8403 |
Ohio-qualified agent offers quality, services, and safety | 8404 |
comparable to other agents otherwise available to the board and | 8405 |
meets the criteria established under division (C) of this section. | 8406 |
(2) The board shall review, at least annually, the | 8407 |
performance of the agents that execute securities transactions on | 8408 |
behalf of the board. | 8409 |
(3) The board shall determine whether an agent is an | 8410 |
Ohio-qualified agent, meets the criteria established by the board | 8411 |
pursuant to division (C) of this section, and offers quality, | 8412 |
services, and safety comparable to other agents otherwise | 8413 |
available to the board. The board's determination shall be final. | 8414 |
(E) The board shall, at least annually, submit to the Ohio | 8415 |
retirement study council a report containing the following | 8416 |
information: | 8417 |
(1) The name of each agent designated as an Ohio-qualified | 8418 |
agent under this section; | 8419 |
(2) The name of each agent that executes securities | 8420 |
transactions on behalf of the board; | 8421 |
(3) The amount of equity and fixed-income trades that are | 8422 |
executed by Ohio-qualified agents, expressed as a percentage of | 8423 |
all equity and fixed-income trades that are executed by agents on | 8424 |
behalf of the board; | 8425 |
(4) The compensation paid to Ohio-qualified agents, expressed | 8426 |
as a percentage of total compensation paid to all agents that | 8427 |
execute securities transactions on behalf of the board; | 8428 |
(5) The amount of equity and fixed-income trades that are | 8429 |
executed by agents that are minority business enterprises, | 8430 |
expressed as a percentage of all equity and fixed-income trades | 8431 |
that are executed by agents on behalf of the board; | 8432 |
(6) Any other information requested by the Ohio retirement | 8433 |
study council regarding the board's use of agents. | 8434 |
Sec. 3309.158. (A) The school employees retirement system | 8435 |
shall disclose the following to the Ohio ethics commission: | 8436 |
(1) Anything of value received by the system from an agent | 8437 |
and anything of value given on behalf of the system by an agent; | 8438 |
(2) The name of any employee of the system with authority | 8439 |
over the investment of retirement system funds or any board member | 8440 |
of the system who deals with an agent regarding amounts described | 8441 |
in division (A)(1) of this section. | 8442 |
(B) The disclosures required by this section shall be made | 8443 |
annually in a report submitted by a date prescribed by the Ohio | 8444 |
ethics commission. | 8445 |
Sec. 3309.159. (A) The school employees retirement board | 8446 |
shall, for the purposes of this section, designate an investment | 8447 |
manager as an Ohio-qualified investment manager if the investment | 8448 |
manager meets all of the following requirements: | 8449 |
(1) The investment manager is subject to taxation under | 8450 |
Chapter 5725., 5733., or 5747. of the Revised Code. | 8451 |
(2) The investment manager meets one of the following | 8452 |
requirements: | 8453 |
(a) Has its corporate headquarters or principal place of | 8454 |
business in this state; | 8455 |
(b) Employs at least five hundred individuals in this state; | 8456 |
(c) Has a principal place of business in this state and | 8457 |
employs at least 20 residents of this state. | 8458 |
(B)(1) The board shall, at least annually, establish a policy | 8459 |
with the goal to increase utilization by the board of | 8460 |
Ohio-qualified investment managers, when an Ohio-qualified | 8461 |
investment manager offers quality, services, and safety comparable | 8462 |
to other investment managers otherwise available to the board. The | 8463 |
policy shall also provide for the following: | 8464 |
(a) A process whereby the board can develop a list of | 8465 |
Ohio-qualified investment managers and their investment products; | 8466 |
(b) A process whereby the board can give public notice to | 8467 |
Ohio-qualified investment managers of the board's search for an | 8468 |
investment manager that includes the board's search criteria. | 8469 |
(2) The board shall determine whether an investment manager | 8470 |
is an Ohio-qualified investment manager and whether the investment | 8471 |
manager offers quality, services, and safety comparable to other | 8472 |
investment managers otherwise available to the board. The board's | 8473 |
determination shall be final. | 8474 |
(C) The board shall, at least annually, submit to the Ohio | 8475 |
retirement study council a report containing the following | 8476 |
information: | 8477 |
(1) The name of each investment manager designated as an | 8478 |
Ohio-qualified investment manager under this section; | 8479 |
(2) The name of each investment manager with which the board | 8480 |
contracts; | 8481 |
(3) The amount of assets managed by Ohio-qualified investment | 8482 |
managers, expressed as a percentage of the total assets held by | 8483 |
the retirement system and as a percentage of assets managed by | 8484 |
investment managers with which the board has contracted; | 8485 |
(4) The compensation paid to Ohio-qualified investment | 8486 |
managers, expressed as a percentage of total compensation paid to | 8487 |
all investment managers with which the board has contracted; | 8488 |
(5) Any other information requested by the Ohio retirement | 8489 |
study council regarding the board's use of investment managers. | 8490 |
Sec. 3309.22. (A)(1) As used in this division, "personal | 8491 |
history record" means information maintained by the board on an | 8492 |
individual who is a member, former member, contributor, former | 8493 |
contributor, retirant, or beneficiary that includes the address, | 8494 |
telephone number, social security number, record of contributions, | 8495 |
correspondence with the system, and other information the board | 8496 |
determines to be confidential. | 8497 |
(2) The records of the board shall be open to public | 8498 |
inspection, except for the following, which shall be excluded, | 8499 |
except with the written authorization of the individual concerned: | 8500 |
(a) The individual's statement of previous service and other | 8501 |
information as provided for in section 3309.28 of the Revised | 8502 |
Code; | 8503 |
(b) Any information identifying by name and address the | 8504 |
amount of a monthly allowance or benefit paid to the individual; | 8505 |
(c) The individual's personal history record. | 8506 |
(B) All medical reports and recommendations required by the | 8507 |
system are privileged except that copies of such medical reports | 8508 |
or recommendations shall be made available to the personal | 8509 |
physician, attorney, or authorized agent of the individual | 8510 |
concerned upon written release received from the individual or the | 8511 |
individual's agent, or when necessary for the proper | 8512 |
administration of the fund, to the board assigned physician. | 8513 |
(C) Any person who is a contributor of the system shall be | 8514 |
furnished, on written request, with a statement of the amount to | 8515 |
the credit of the person's account. The board need not answer more | 8516 |
than one such request of a person in any one year. | 8517 |
(D) Notwithstanding the exceptions to public inspection in | 8518 |
division (A)(2) of this section, the board may furnish the | 8519 |
following information: | 8520 |
(1) If a member, former member, contributor, former | 8521 |
contributor, or retirant is subject to an order issued under | 8522 |
section 2907.15 of the Revised Code or is convicted of or pleads | 8523 |
guilty to a violation of section 2921.41 of the Revised Code, on | 8524 |
written request of a prosecutor as defined in section 2935.01 of | 8525 |
the Revised Code, the board shall furnish to the prosecutor the | 8526 |
information requested from the individual's personal history | 8527 |
record. | 8528 |
(2) Pursuant to a court or administrative order issued under | 8529 |
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the | 8530 |
Revised Code, the board shall furnish to a court or child support | 8531 |
enforcement agency the information required under that section. | 8532 |
(3) At the written request of any person, the board shall | 8533 |
provide to the person a list of the names and addresses of | 8534 |
members, former members, retirants, contributors, former | 8535 |
contributors, or beneficiaries. The costs of compiling, copying, | 8536 |
and mailing the list shall be paid by such person. | 8537 |
(4) Within fourteen days after receiving from the director of | 8538 |
job and family services a list of the names and social security | 8539 |
numbers of recipients of public assistance pursuant to section | 8540 |
5101.181 of the Revised Code, the board shall inform the auditor | 8541 |
of state of the name, current or most recent employer address, and | 8542 |
social security number of each contributor whose name and social | 8543 |
security number are the same as that of a person whose name or | 8544 |
social security number was submitted by the director. The board | 8545 |
and its employees shall, except for purposes of furnishing the | 8546 |
auditor of state with information required by this section, | 8547 |
preserve the confidentiality of recipients of public assistance in | 8548 |
compliance with division (A) of section 5101.181 of the Revised | 8549 |
Code. | 8550 |
(5) The system shall comply with orders issued under section | 8551 |
3105.87 of the Revised Code. | 8552 |
On the written request of an alternate payee, as defined in | 8553 |
section 3105.80 of the Revised Code, the system shall furnish to | 8554 |
the alternate payee information on the amount and status of any | 8555 |
amounts payable to the alternate payee under an order issued under | 8556 |
section 3105.171 or 3105.65 of the Revised Code. | 8557 |
(6) At the request of any person, the board shall make | 8558 |
available to the person copies of all documents, including | 8559 |
resumes, in the board's possession regarding filling a vacancy of | 8560 |
an employee member or retirant member of the board. The person who | 8561 |
made the request shall pay the cost of compiling, copying, and | 8562 |
mailing the documents. The information described in this division | 8563 |
is a public record. | 8564 |
(E) A statement that contains information obtained from the | 8565 |
system's records that is signed by an officer of the retirement | 8566 |
system and to which the system's official seal is affixed, or | 8567 |
copies of the system's records to which the signature and seal are | 8568 |
attached, shall be received as true copies of the system's records | 8569 |
in any court or before any officer of this state. | 8570 |
Sec. 3309.251. (A) Except as provided in division (D) of | 8571 |
this section, an individual who becomes a member of the school | 8572 |
employees retirement system on or after the date on which the | 8573 |
school employees retirement board establishes a plan under section | 8574 |
3309.81 of the Revised Code shall make an election under this | 8575 |
section. Not later than one hundred eighty days after the date on | 8576 |
which employment begins, the individual shall elect to participate | 8577 |
either in the plan described in sections 3309.18 to 3309.70 of the | 8578 |
Revised Code or one of the plans established under section 3309.81 | 8579 |
of the Revised Code. If a form evidencing an election under this | 8580 |
section is not on file with the employer at the end of the | 8581 |
one-hundred-eighty-day period, the individual is deemed to have | 8582 |
elected to participate in the plan described in sections 3309.18 | 8583 |
to 3309.70 of the Revised Code. | 8584 |
(B) An election under this section shall be made in writing | 8585 |
on a form provided by the retirement system and filed with the | 8586 |
employer's personnel officer. Not later than ten days after | 8587 |
receiving the form evidencing the election, the employer shall | 8588 |
transmit to the system a copy that includes a statement certifying | 8589 |
that it is a true and accurate copy of the original. | 8590 |
(C) An election under this section shall take effect on the | 8591 |
date employment began and is irrevocable on receipt by the | 8592 |
employer. | 8593 |
(D) An individual is ineligible to make an election under | 8594 |
this section if either of the following applies: | 8595 |
(1) At the time employment begins, the individual is already | 8596 |
a member or contributor participating in the plan described in | 8597 |
sections 3309.18 to 3309.70 of the Revised Code or an SERS | 8598 |
retirant, as defined in section 3309.341 of the Revised Code. | 8599 |
(2) An election to participate in an alternative retirement | 8600 |
plan under section 3305.05 or 3305.051 of the Revised Code is in | 8601 |
effect for employment covered by the system. | 8602 |
Sec. 3309.42. (A) Subject to sections 3309.43 and 3309.67 of | 8603 |
the Revised Code and except as provided in division (B) of this | 8604 |
section, a member who elects to become exempt from contribution to | 8605 |
the school employees retirement system pursuant to section 3309.23 | 8606 |
of the Revised Code, or ceases to be an employee for any cause | 8607 |
other than death, retirement, receipt of a disability benefit, or | 8608 |
current employment in a position in which the member has elected | 8609 |
to participate in an alternative retirement plan pursuant to | 8610 |
section 3305.05 or 3305.051 of the Revised Code, shall be paid the | 8611 |
accumulated contributions standing to the credit of the member's | 8612 |
individual account in the employees' savings fund upon application | 8613 |
and subject to such rules as are established by the school | 8614 |
employees retirement board and provided three months have elapsed | 8615 |
since employment, other than employment exempt from contribution | 8616 |
under division (C) of section 3309.23 of the Revised Code, ceased. | 8617 |
(B) This division applies to any member who is employed in a | 8618 |
position in which the member has elected under section 3305.05 or | 8619 |
3305.051 of the Revised Code to participate in an alternative | 8620 |
retirement plan and due to the election ceases to be an employee | 8621 |
for purposes of that position. | 8622 |
Subject to sections 3309.43 and 3309.67 of the Revised Code, | 8623 |
the school employees retirement system shall do the following: | 8624 |
(1) On receipt of an election under section 3305.05 or | 8625 |
3305.051 of the Revised Code, pay, in accordance with section | 8626 |
8627 | |
that section to the appropriate provider; | 8628 |
(2) If a member has accumulated contributions, in addition to | 8629 |
those subject to division (B)(1) of this section, standing to the | 8630 |
credit of the member's individual account and is not otherwise in | 8631 |
a position in which the member is considered an employee for the | 8632 |
purposes of that position, pay, to the provider the member | 8633 |
selected pursuant to section 3305.05 or 3305.051 of the Revised | 8634 |
Code, the accumulated contributions standing to the credit of the | 8635 |
member's individual account in the employees' saving fund. The | 8636 |
payment shall be made on the member's application. | 8637 |
(C) Payment of a member's accumulated contributions under | 8638 |
this section cancels the member's total service credit in the | 8639 |
school employees retirement system. A member whose accumulated | 8640 |
contributions are paid to a provider pursuant to division (B) of | 8641 |
this section is forever barred from claiming or purchasing service | 8642 |
credit under the school employees retirement system for the period | 8643 |
of employment attributable to those contributions. | 8644 |
Sec. 3309.99. (A) Whoever violates division (A) of section | 8645 |
3309.073 of the Revised Code shall be fined not more than one | 8646 |
hundred dollars for each day of the violation. | 8647 |
(B) Whoever violates division (B) of section 3309.073 of the | 8648 |
Revised Code shall be imprisoned for not more than six months or | 8649 |
fined not more than five thousand dollars, or both. | 8650 |
(C) Fines imposed by the Ohio elections commission under this | 8651 |
section shall be paid into the Ohio elections commission fund | 8652 |
created under section 3513.10 of the Revised Code. | 8653 |
Sec. 5505.04. (A)(1) The general administration and | 8654 |
management of the state highway patrol retirement system and the | 8655 |
making effective of this chapter are hereby vested in the state | 8656 |
highway patrol retirement board. The board may sue and be sued, | 8657 |
plead and be impleaded, contract and be contracted with, and do | 8658 |
all things necessary to carry out this chapter. | 8659 |
The board shall consist of the | 8660 |
following members: | 8661 |
(a) The
superintendent of the state highway patrol | 8662 |
8663 |
(b) Two retirant members who
| 8664 |
state | 8665 |
(c) Five employee-members; | 8666 |
(d) One member, known as the treasurer of state's investment | 8667 |
designee, who shall be appointed by the treasurer of state for a | 8668 |
term of four years and who shall have the following | 8669 |
qualifications: | 8670 |
(i) The member is a resident of this state. | 8671 |
(ii) Within the three years immediately preceding the | 8672 |
appointment, the member has not been employed by the public | 8673 |
employees retirement system, police and fire pension fund, state | 8674 |
teachers retirement system, school employees retirement system, or | 8675 |
state highway patrol retirement system or by any person, | 8676 |
partnership, or corporation that has provided to one of those | 8677 |
retirement systems services of a financial or investment nature, | 8678 |
including the management, analysis, supervision, or investment of | 8679 |
assets. | 8680 |
(iii) The member has direct experience in the management, | 8681 |
analysis, supervision, or investment of assets. | 8682 |
(iv) The member is not currently employed by the state or a | 8683 |
political subdivision of the state. | 8684 |
(e) Two investment expert members, who shall be appointed to | 8685 |
four-year terms. One investment expert member shall be appointed | 8686 |
by the governor, and one investment expert member shall be jointly | 8687 |
appointed by the speaker of the house of representatives and the | 8688 |
president of the senate. Each investment expert member shall have | 8689 |
the following qualifications: | 8690 |
(i) Each investment expert member shall be a resident of this | 8691 |
state. | 8692 |
(ii) Within the three years immediately preceding the | 8693 |
appointment, each investment expert member shall not have been | 8694 |
employed by the public employees retirement system, police and | 8695 |
fire pension fund, state teachers retirement system, school | 8696 |
employees retirement system, or state highway patrol retirement | 8697 |
system or by any person, partnership, or corporation that has | 8698 |
provided to one of those retirement systems services of a | 8699 |
financial or investment nature, including the management, | 8700 |
analysis, supervision, or investment of assets. | 8701 |
(iii) Each investment expert member shall have direct | 8702 |
experience in the management, analysis, supervision, or investment | 8703 |
of assets. | 8704 |
(2) The board shall annually elect a chairperson and | 8705 |
vice-chairperson from among its members. The vice-chairperson | 8706 |
shall act as chairperson in the absence of the chairperson. A | 8707 |
majority of the members of the board shall constitute a quorum and | 8708 |
any action taken shall be
approved by | 8709 |
the members of the board. The board shall meet not less than once | 8710 |
each year, upon sufficient notice to the members. All meetings of | 8711 |
the board shall be open to the public except executive sessions as | 8712 |
set forth in division (G) of section 121.22 of the Revised Code, | 8713 |
and any portions of any sessions discussing medical records or the | 8714 |
degree of disability of a member excluded from public inspection | 8715 |
by this section. | 8716 |
(3) Any investment expert member appointed to fill a vacancy | 8717 |
occurring prior to the expiration of the term for which the | 8718 |
member's predecessor was appointed holds office until the end of | 8719 |
such term. The member continues in office subsequent to the | 8720 |
expiration date of the member's term until the member's successor | 8721 |
takes office, or until a period of sixty days has elapsed, | 8722 |
whichever occurs first. | 8723 |
(B) The attorney general shall prescribe procedures for the | 8724 |
adoption of rules authorized under this chapter, consistent with | 8725 |
the provision of section 111.15 of the Revised Code under which | 8726 |
all rules shall be filed in order to be effective. Such procedures | 8727 |
shall establish methods by which notice of proposed rules are | 8728 |
given to interested parties and rules adopted by the board | 8729 |
published and otherwise made available. When it files a rule with | 8730 |
the joint committee on agency rule review pursuant to section | 8731 |
111.15 of the Revised Code, the board shall submit to the Ohio | 8732 |
retirement study council a copy of the full text of the rule, and | 8733 |
if applicable, a copy of the rule summary and fiscal analysis | 8734 |
required by division (B) of section 127.18 of the Revised Code. | 8735 |
(C)(1) | 8736 |
8737 | |
8738 | |
8739 | |
8740 | |
8741 | |
8742 | |
8743 |
| 8744 |
8745 | |
8746 | |
8747 | |
8748 | |
8749 |
| 8750 |
8751 | |
8752 | |
8753 | |
8754 | |
8755 |
| 8756 |
8757 | |
8758 | |
8759 | |
8760 | |
8761 | |
8762 | |
8763 | |
8764 | |
8765 |
| 8766 |
means information maintained by the board on an individual who is | 8767 |
a member, former member, retirant, or beneficiary that includes | 8768 |
the address, telephone number, social security number, record of | 8769 |
contributions, correspondence with the system, and other | 8770 |
information the board determines to be confidential. | 8771 |
(2) The records of the board shall be open to public | 8772 |
inspection, except for the following which shall be excluded: the | 8773 |
member's, former member's, retirant's, or beneficiary's personal | 8774 |
history record and the amount of a monthly allowance or benefit | 8775 |
paid to a retirant, beneficiary, or survivor, except with the | 8776 |
written authorization of the individual concerned. All medical | 8777 |
reports and recommendations are privileged except that copies of | 8778 |
such medical reports or recommendations shall be made available to | 8779 |
the individual's personal physician, attorney, or authorized agent | 8780 |
upon written release received from such individual or such | 8781 |
individual's agent, or when necessary for the proper | 8782 |
administration of the fund to the board-assigned physician. | 8783 |
| 8784 |
division | 8785 |
following information: | 8786 |
(1) If a member, former member, or retirant is subject to an | 8787 |
order issued under section 2907.15 of the Revised Code or is | 8788 |
convicted of or pleads guilty to a violation of section 2921.41 of | 8789 |
the Revised Code, on written request of a prosecutor as defined in | 8790 |
section 2935.01 of the Revised Code, the board shall furnish to | 8791 |
the prosecutor the information requested from the individual's | 8792 |
personal history record. | 8793 |
(2) Pursuant to a court order issued under Chapters 3119., | 8794 |
3121., and 3123. of the Revised Code, the board shall furnish to a | 8795 |
court or child support enforcement agency the information required | 8796 |
under those chapters. | 8797 |
(3) At the written request of any nonprofit organization or | 8798 |
association providing services to retirement system members, | 8799 |
retirants, or beneficiaries, the board shall provide to the | 8800 |
organization or association a list of the names and addresses of | 8801 |
members, former members, retirants, or beneficiaries if the | 8802 |
organization or association agrees to use such information solely | 8803 |
in accordance with its stated purpose of providing services to | 8804 |
such individuals and not for the benefit of other persons, | 8805 |
organizations, or associations. The costs of compiling, copying, | 8806 |
and mailing the list shall be paid by such entity. | 8807 |
(4) Within fourteen days after receiving from the director of | 8808 |
job and family services a list of the names and social security | 8809 |
numbers of recipients of public assistance pursuant to section | 8810 |
5101.181 of the Revised Code, the board shall inform the auditor | 8811 |
of state of the name, current or most recent employer address, and | 8812 |
social security number of each member whose name and social | 8813 |
security number are the same as those of a person whose name or | 8814 |
social security number was submitted by the director. The board | 8815 |
and its employees, except for purposes of furnishing the auditor | 8816 |
of state with information required by this section, shall preserve | 8817 |
the confidentiality of recipients of public assistance in | 8818 |
compliance with division (A) of section 5101.181 of the Revised | 8819 |
Code. | 8820 |
(5) The system shall comply with orders issued under section | 8821 |
3105.87 of the Revised Code. | 8822 |
On the written request of an alternate payee, as defined in | 8823 |
section 3105.80 of the Revised Code, the system shall furnish to | 8824 |
the alternate payee information on the amount and status of any | 8825 |
amounts payable to the alternate payee under an order issued under | 8826 |
section 3105.171 or 3105.65 of the Revised Code. | 8827 |
(6) At the request of any person, the board shall make | 8828 |
available to the person copies of all documents, including | 8829 |
resumes, in the board's possession regarding filling a vacancy of | 8830 |
an employee member or retirant member of the board. The person who | 8831 |
made the request shall pay the cost of compiling, copying, and | 8832 |
mailing the documents. The information described in this division | 8833 |
is a public record. | 8834 |
| 8835 |
the system's records that is certified and signed by an officer of | 8836 |
the retirement system and to which the system's official seal is | 8837 |
affixed, or copies of the system's records to which the signature | 8838 |
and seal are attached, shall be received as true copies of the | 8839 |
system's records in any court or before any officer of this state. | 8840 |
Sec. 5505.041. All elections for retirant member and employee | 8841 |
members of the state highway patrol retirement board shall be held | 8842 |
under the direction of the board in accordance with rules adopted | 8843 |
under section 5505.047 of the Revised Code. A person who at the | 8844 |
time of retirement is an employee member of the board is not | 8845 |
eligible to become a retirant member of the board until three | 8846 |
years after the person's retirement date. Service and disability | 8847 |
retirants may vote in elections for the retirant member of the | 8848 |
board. Contributing members may vote in elections for the employee | 8849 |
member of the board. | 8850 |
On certification of the election results in accordance with | 8851 |
rules adopted under section 5505.047 of the Revised Code, the | 8852 |
person elected as a retirant member of the board or an employee | 8853 |
member of the board shall serve a four-year term beginning on the | 8854 |
first day of August following the election. | 8855 |
The initial election of the second retirant-member shall be | 8856 |
held at the first election that occurs later than ninety days | 8857 |
after the effective date of this section. The subsequent term | 8858 |
shall commence on the first day of August of the fourth year | 8859 |
thereafter. | 8860 |
Sec. 5505.042. Except as provided in section 5505.043 of the | 8861 |
Revised Code, any vacancy occurring in the term of a retirant | 8862 |
member of the state highway patrol retirement board or an employee | 8863 |
member of the board shall be filled by an election conducted in | 8864 |
the same manner as other retirant member and employee member | 8865 |
elections under section 5505.041 of the Revised Code. On | 8866 |
certification of the election results in accordance with rules | 8867 |
adopted under section 5505.047 of the Revised Code, the retirant | 8868 |
member or employee member elected shall hold office until the next | 8869 |
board election that occurs not less than ninety days after the | 8870 |
member's election. | 8871 |
Sec. 5505.043. The state highway patrol retirement board is | 8872 |
not required to hold an election for a position on the board as a | 8873 |
retirant member, employee member, or vacancy for a retirant member | 8874 |
or employee member if only one candidate has been nominated for | 8875 |
the position or vacancy in accordance with rules governing the | 8876 |
election adopted under section 5505.047 of the Revised Code. The | 8877 |
candidate shall take office as if elected. In the case of a | 8878 |
retirant member or employee member, the term of office shall be | 8879 |
four years beginning in August of the year the candidate was | 8880 |
nominated. In the case of a vacancy, the candidate shall fill the | 8881 |
unexpired term. | 8882 |
Sec. 5505.044. (A) As used in this section: | 8883 |
(1) "Campaign committee" means a candidate or a combination | 8884 |
of two or more persons authorized by a candidate to receive | 8885 |
contributions and in-kind contributions and make expenditures on | 8886 |
behalf of the candidate. | 8887 |
(2) "Candidate" means an individual who has been nominated in | 8888 |
accordance with rules adopted under section 5505.047 of the | 8889 |
Revised Code for election to the state highway patrol retirement | 8890 |
board or who is seeking to be elected to fill a vacancy on the | 8891 |
board pursuant to section 5505.042 of the Revised Code. | 8892 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 8893 |
of indebtedness, donation, advance, payment, transfer of funds or | 8894 |
transfer of anything of value including a transfer of funds from | 8895 |
an inter vivos or testamentary trust or decedent's estate, and the | 8896 |
payment by any person other than the person to whom the services | 8897 |
are rendered for the personal services of another person, which | 8898 |
contribution is made, received, or used for the purpose of | 8899 |
influencing the results of an election to the state highway patrol | 8900 |
retirement board under section 5505.041 or 5505.042 of the Revised | 8901 |
Code or the results of an election to fill a vacancy on the board | 8902 |
pursuant to section 5505.042 of the Revised Code. "Contribution" | 8903 |
does not include: | 8904 |
(a) Services provided without compensation by individuals | 8905 |
volunteering a portion or all of their time on behalf of a person; | 8906 |
(b) Ordinary home hospitality; | 8907 |
(c) The personal expenses of a volunteer paid for by that | 8908 |
volunteer campaign worker. | 8909 |
(4) "Election day" means the following, as appropriate to the | 8910 |
situation: | 8911 |
(a) The last day that ballots for an election to the state | 8912 |
highway patrol retirement board under section 5505.041 or 5505.042 | 8913 |
of the Revised Code may be returned in order for the ballot to be | 8914 |
counted; | 8915 |
(b) If, pursuant to section 5505.043 of the Revised Code, no | 8916 |
election is held, the last day that ballots would have been | 8917 |
required to be returned in order to be counted if an election was | 8918 |
to be held under section 5505.041 or 5505.042 of the Revised Code. | 8919 |
(5) "Expenditure" means the disbursement or use of a | 8920 |
contribution for the purpose of influencing the results of an | 8921 |
election to the state highway patrol retirement board under | 8922 |
section 5505.041 or 5505.042 of the Revised Code or the results of | 8923 |
an election to fill a vacancy on the board pursuant to section | 8924 |
5505.042 of the Revised Code. | 8925 |
(6) "Independent expenditure" means an expenditure by an | 8926 |
individual, partnership, or other entity advocating the election | 8927 |
or defeat of an identified candidate or candidates, that is not | 8928 |
made with the consent of, in coordination, cooperation, or | 8929 |
consultation with, or at the request or suggestion of any | 8930 |
candidate or candidates or of the campaign committee or agent of | 8931 |
the candidate or candidates. An independent expenditure shall not | 8932 |
be construed as being a contribution. As used in division (A)(6) | 8933 |
of this section: | 8934 |
(a) "Advocating" means any communication containing a message | 8935 |
advocating election or defeat. | 8936 |
(b) "Identified candidate" means that the name of the | 8937 |
candidate appears, a photograph or drawing of the candidate | 8938 |
appears, or the identity of the candidate is otherwise apparent by | 8939 |
unambiguous reference. | 8940 |
(c) "Made in coordination, cooperation, or consultation with, | 8941 |
or at the request or suggestion of, any candidate or the campaign | 8942 |
committee or agent of the candidate" means made pursuant to any | 8943 |
arrangement, coordination, or direction by the candidate, the | 8944 |
candidate's campaign committee, or the candidate's agent prior to | 8945 |
the publication, distribution, display, or broadcast of the | 8946 |
communication. An expenditure is presumed to be so made when it is | 8947 |
any of the following: | 8948 |
(i) Based on information about the candidate's plans, | 8949 |
projects, or needs provided to the person making the expenditure | 8950 |
by the candidate, or by the candidate's campaign committee or | 8951 |
agent, with a view toward having an expenditure made; | 8952 |
(ii) Made by or through any person who is, or has been, | 8953 |
authorized to raise or expend funds, who is, or has been, an | 8954 |
officer of the candidate's campaign committee, or who is, or has | 8955 |
been, receiving any form of compensation or reimbursement from the | 8956 |
candidate or the candidate's campaign committee or agent; | 8957 |
(iii) Made by a political party in support of a candidate, | 8958 |
unless the expenditure is made by a political party to conduct | 8959 |
voter registration or voter education efforts. | 8960 |
(d) "Agent" means any person who has actual oral or written | 8961 |
authority, either express or implied, to make or to authorize the | 8962 |
making of expenditures on behalf of a candidate, or means any | 8963 |
person who has been placed in a position with the candidate's | 8964 |
campaign committee or organization such that it would reasonably | 8965 |
appear that in the ordinary course of campaign-related activities | 8966 |
the person may authorize expenditures. | 8967 |
(7) "In-kind contribution" means anything of value other than | 8968 |
money that is used to influence the results of an election to the | 8969 |
state highway patrol retirement board under section 5505.041 or | 8970 |
5505.042 of the Revised Code or the results of an election to fill | 8971 |
a vacancy on the board pursuant to section 5505.042 of the Revised | 8972 |
Code or is transferred to or used in support of or in opposition | 8973 |
to a candidate and that is made with the consent of, in | 8974 |
coordination, cooperation, or consultation with, or at the request | 8975 |
or suggestion of the benefited candidate. The financing of the | 8976 |
dissemination, distribution, or republication, in whole or in | 8977 |
part, of any broadcast or of any written, graphic, or other form | 8978 |
of campaign materials prepared by the candidate, the candidate's | 8979 |
campaign committee, or their authorized agents is an in-kind | 8980 |
contribution to the candidate and an expenditure by the candidate. | 8981 |
(8) "Personal expenses" includes ordinary expenses for | 8982 |
accommodations, clothing, food, personal motor vehicle or | 8983 |
airplane, and home telephone. | 8984 |
(B) Except as otherwise provided in division (D) of this | 8985 |
section, each candidate who, or whose campaign committee, receives | 8986 |
contributions or in-kind contributions totaling one thousand | 8987 |
dollars or more or has expenditures totaling one thousand dollars | 8988 |
or more in connection with the candidate's efforts to be elected | 8989 |
to the state highway patrol retirement board shall file with the | 8990 |
secretary of state two complete, accurate, and itemized statements | 8991 |
setting forth in detail the contributions, in-kind contributions, | 8992 |
and expenditures. The statements shall be filed regardless of | 8993 |
whether an election is held or, pursuant to section 5505.043 of | 8994 |
the Revised Code, an election is not held. The statements shall be | 8995 |
made on a form prescribed under section 111.30 of the Revised | 8996 |
Code. Every expenditure shall be vouched for by a receipted bill, | 8997 |
stating the purpose of the expenditures, that shall be filed with | 8998 |
the statement; a canceled check with a notation of the purpose of | 8999 |
the expenditure is a receipted bill for purposes of this division. | 9000 |
The first statement shall be filed not later than four p.m. | 9001 |
on the day that is twelve days before election day. The second | 9002 |
statement shall be filed not sooner than the day that is eight | 9003 |
days after election day and not later than thirty-eight days after | 9004 |
election day. The first statement shall reflect contributions and | 9005 |
in-kind contributions received and expenditures made to the close | 9006 |
of business on the twentieth day before election day. The second | 9007 |
statement shall reflect contributions and in-kind contributions | 9008 |
received and expenditures made during the period beginning on the | 9009 |
nineteenth day before election day and ending on the close of | 9010 |
business on the seventh day after election day. | 9011 |
(C) Each individual, partnership, or other entity who makes | 9012 |
an independent expenditure in connection with the candidate's | 9013 |
efforts to be elected to the state highway patrol retirement board | 9014 |
shall file with the secretary of state two complete, accurate, and | 9015 |
itemized statements setting forth in detail the independent | 9016 |
expenditures. The statements shall be filed regardless of whether | 9017 |
an election is held or, pursuant to section 5505.043 of the | 9018 |
Revised Code, an election is not held. The statements shall be | 9019 |
made on a form prescribed under section 111.30 of the Revised | 9020 |
Code. | 9021 |
The first statement shall be filed not later than four p.m. | 9022 |
on the day that is twelve days before election day. The second | 9023 |
statement shall be filed not sooner than the day that is eight | 9024 |
days after election day and not later than thirty-eight days after | 9025 |
election day. The first statement shall reflect independent | 9026 |
expenditures made to the close of business on the twentieth day | 9027 |
before election day. The second statement shall reflect | 9028 |
independent expenditures made during the period beginning on the | 9029 |
nineteenth day before election day and ending on the close of | 9030 |
business on the seventh day after election day. | 9031 |
(D) Each candidate who, or whose campaign committee, receives | 9032 |
a contribution or in-kind contribution or makes an expenditure in | 9033 |
connection with the candidate's efforts to be elected to fill a | 9034 |
vacancy in the public employees retirement board pursuant to | 9035 |
section 5505.042 of the Revised Code shall file with the secretary | 9036 |
of state a complete, accurate, and itemized statement setting | 9037 |
forth in detail the contributions, in-kind contributions, and | 9038 |
expenditures. The statement shall be made on a form prescribed | 9039 |
under section 111.30 of the Revised Code. Every expenditure shall | 9040 |
be vouched for by a receipted bill, stating the purpose of the | 9041 |
expenditures, that shall be filed with the statement; a canceled | 9042 |
check with a notation of the purpose of the expenditure is a | 9043 |
receipted bill for purposes of this division. | 9044 |
The statement shall be filed within thirty-eight days after | 9045 |
the day the candidate takes office. The statement shall reflect | 9046 |
contributions and in-kind contributions received and expenditures | 9047 |
made to the close of business on the seventh day after the day the | 9048 |
candidate takes office. | 9049 |
Sec. 5505.045. (A) No person shall knowingly fail to file a | 9050 |
complete and accurate campaign finance statement or independent | 9051 |
expenditure statement in accordance with section 5505.044 of the | 9052 |
Revised Code. | 9053 |
(B) No person, during the course of a person seeking | 9054 |
nomination for, and during any campaign for, election to the state | 9055 |
highway patrol retirement board, shall knowingly and with intent | 9056 |
to affect the nomination or the outcome of the campaign do any of | 9057 |
the following by means of campaign materials, an advertisement on | 9058 |
radio or television or in a newspaper or periodical, a public | 9059 |
speech, press release, or otherwise: | 9060 |
(1) With regard to a candidate, identify the candidate in a | 9061 |
manner that implies that the candidate is a member of the board or | 9062 |
use the term "re-elect" when the candidate is not currently a | 9063 |
member of the board; | 9064 |
(2) Make a false statement concerning the formal schooling or | 9065 |
training completed or attempted by a candidate; a degree, diploma, | 9066 |
certificate, scholarship, grant, award, prize, or honor received, | 9067 |
earned, or held by a candidate; or the period of time during which | 9068 |
a candidate attended any school, college, community technical | 9069 |
school, or institution; | 9070 |
(3) Make a false statement concerning the professional, | 9071 |
occupational, or vocational licenses held by a candidate, or | 9072 |
concerning any position the candidate held for which the candidate | 9073 |
received a salary or wages; | 9074 |
(4) Make a false statement that a candidate or board member | 9075 |
has been indicted or convicted of a theft offense, extortion, or | 9076 |
other crime involving financial corruption or moral turpitude; | 9077 |
(5) Make a statement that a candidate has been indicted for | 9078 |
any crime or has been the subject of a finding by the Ohio | 9079 |
elections commission without disclosing the outcome of any legal | 9080 |
proceedings resulting from the indictment or finding; | 9081 |
(6) Make a false statement that a candidate or board member | 9082 |
has a record of treatment or confinement for mental disorder; | 9083 |
(7) Make a false statement that a candidate or board member | 9084 |
has been subjected to military discipline for criminal misconduct | 9085 |
or dishonorably discharged from the armed services; | 9086 |
(8) Falsely identify the source of a statement, issue | 9087 |
statements under the name of another person without authorization, | 9088 |
or falsely state the endorsement of or opposition to a candidate | 9089 |
by a person or publication; | 9090 |
(9) Make a false statement concerning the voting record of a | 9091 |
candidate or board member; | 9092 |
(10) Post, publish, circulate, distribute, or otherwise | 9093 |
disseminate a false statement concerning a candidate, either | 9094 |
knowing the same to be false or with reckless disregard of whether | 9095 |
it was false or not, if the statement is designed to promote the | 9096 |
election, nomination, or defeat of the candidate. | 9097 |
Sec. 5505.046. The secretary of state, or any person acting | 9098 |
on personal knowledge and subject to the penalties of perjury, may | 9099 |
file a complaint with the Ohio elections commission alleging a | 9100 |
violation of section 5505.045 of the Revised Code. The complaint | 9101 |
shall be made on a form prescribed and provided by the commission. | 9102 |
On receipt of a complaint under this section, the commission | 9103 |
shall hold a hearing open to the public to determine whether the | 9104 |
violation alleged in the complaint has occurred. The commission | 9105 |
may administer oaths and issue subpoenas to any person in the | 9106 |
state compelling the attendance of witnesses and the production of | 9107 |
relevant papers, books, accounts, and reports. On the refusal of | 9108 |
any person to obey a subpoena or to be sworn or to answer as a | 9109 |
witness, the commission may apply to the court of common pleas of | 9110 |
Franklin county under section 2705.03 of the Revised Code. The | 9111 |
court shall hold contempt proceedings in accordance with Chapter | 9112 |
2705. of the Revised Code. | 9113 |
The commission shall provide the person accused of the | 9114 |
violation at least seven days prior notice of the time, date, and | 9115 |
place of the hearing. The accused may be represented by an | 9116 |
attorney and shall have an opportunity to present evidence, call | 9117 |
witnesses, and cross-examine witnesses. | 9118 |
At the hearing, the commission shall determine whether the | 9119 |
violation alleged in the complaint has occurred. If the commission | 9120 |
determines that a violation of division (A) of section 5505.045 of | 9121 |
the Revised Code has occurred, the commission shall either impose | 9122 |
a fine under section 5505.99 of the Revised Code or enter a | 9123 |
finding that good cause has been shown not to impose the fine. If | 9124 |
the commission determines that a violation of division (B) of | 9125 |
section 5505.045 of the Revised Code has occurred, the commission | 9126 |
shall impose the fine described in section 5505.99 of the Revised | 9127 |
Code, refer the matter to the appropriate prosecutor, or enter a | 9128 |
finding that good cause has been shown to not impose a fine or | 9129 |
refer the matter to the appropriate prosecutor. | 9130 |
Sec. 5505.047. (A) The state highway patrol board, after | 9131 |
consultation with the secretary of state, shall adopt rules in | 9132 |
accordance with Chapter 119. of the Revised Code, governing all of | 9133 |
the following: | 9134 |
(1) The administration of elections of members of the board | 9135 |
under section 5505.041 of the Revised Code and elections held | 9136 |
under section 5505.042 of the Revised Code to fill vacancies on | 9137 |
the board; | 9138 |
(2) Nominating petitions for the elections; | 9139 |
(3) Certification of the validity of nominating petitions for | 9140 |
the elections; | 9141 |
(4) Certification of the results of the elections. | 9142 |
(B) The board may contract with the secretary of state or an | 9143 |
independent firm to administer the elections, certify the validity | 9144 |
of nominating petitions, and certify the results of the elections. | 9145 |
The secretary of state and the independent firm shall perform | 9146 |
these services in accordance with the rules adopted under division | 9147 |
(A) of this section. Notwithstanding section 5505.04 of the | 9148 |
Revised Code, the board shall provide information necessary for | 9149 |
the secretary of state or the independent firm to certify the | 9150 |
election. If the board contracts with an independent firm to | 9151 |
administer an election, the secretary of state may audit the | 9152 |
election. | 9153 |
Sec. 5505.048. (A) The office of an employee member or | 9154 |
retirant member of the state highway patrol retirement board who | 9155 |
is convicted of or pleads guilty to a felony, a theft offense as | 9156 |
defined in section 2913.01 of the Revised Code, or a violation of | 9157 |
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, | 9158 |
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code | 9159 |
shall be deemed vacant. A person who has pleaded guilty to or been | 9160 |
convicted of an offense of that nature is ineligible for election | 9161 |
to the office of employee member or retirant member of the state | 9162 |
highway patrol retirement board. | 9163 |
(B) A member of the state highway patrol retirement board who | 9164 |
willfully and flagrantly exercises authority or power not | 9165 |
authorized by law, refuses or willfully neglects to enforce the | 9166 |
law or to perform any official duty imposed by law, or is guilty | 9167 |
of gross neglect of duty, gross immorality, drunkenness, | 9168 |
misfeasance, malfeasance, or nonfeasance is guilty of misconduct | 9169 |
in office. On complaint and hearing in the manner provided for in | 9170 |
this section, the board member shall have judgment of forfeiture | 9171 |
of the office with all its emoluments entered against the board | 9172 |
member, creating in the office a vacancy to be filled as provided | 9173 |
by law. | 9174 |
(C) Proceedings for removal of a state retirement system | 9175 |
board member on any of the grounds enumerated in division (B) of | 9176 |
this section shall be commenced by filing with the court of | 9177 |
appeals of the district in which the board member resides a | 9178 |
written complaint specifically setting forth the charge. The | 9179 |
complaint shall be accepted if signed by the governor or signed as | 9180 |
follows: | 9181 |
(1) If the complaint is against an employee member of the | 9182 |
board, the complaint must be signed by a number of members of the | 9183 |
retirement system that equals at least the following and must | 9184 |
include signatures of at least twenty employee members residing in | 9185 |
at least five different counties: | 9186 |
(a) If the employee member was most recently elected in | 9187 |
accordance with division (C)(2) of section 5505.04 of the Revised | 9188 |
Code, ten per cent of the number of contributing members of the | 9189 |
system who voted in that election; | 9190 |
(b) If the employee member was most recently elected to the | 9191 |
board pursuant to division (C)(3) of section 5505.04 of the | 9192 |
Revised Code or took office in accordance with division (C)(4) of | 9193 |
that section, ten per cent of the number of contributing members | 9194 |
of the system who voted in the most recent election held in | 9195 |
accordance with division (C)(2) of section 5505.04 of the Revised | 9196 |
Code for that employee member position on the board. | 9197 |
(2) If the complaint is against the retirant member of the | 9198 |
board, the complaint must be signed by a number of service and | 9199 |
disability retirants that equals at least the following and must | 9200 |
include signatures of at least twenty service and disability | 9201 |
members residing in at least five different counties: | 9202 |
(a) If the retirant member was most recently elected in | 9203 |
accordance with division (C)(1) of section 5505.04 of the Revised | 9204 |
Code, ten per cent of the number of service and disability | 9205 |
retirants who voted in that election; | 9206 |
(b) If the retirant member was most recently elected to the | 9207 |
board pursuant to division (C)(3) of section 5505.04 of the | 9208 |
Revised Code or took office in accordance with division (C)(4) of | 9209 |
that section, ten per cent of the number of service and disability | 9210 |
retirants who voted in the most recent election held in accordance | 9211 |
with division (C)(1) of section 5505.04 of the Revised Code for | 9212 |
that retirant member position on the board. | 9213 |
(D) The clerk of the court of appeals in which a complaint | 9214 |
against a board member is filed under division (C) of this section | 9215 |
shall do both of the following with respect to the complaint: | 9216 |
(1) Submit the signatures obtained pursuant to division (C) | 9217 |
of this section to the board for purposes of verifying the | 9218 |
validity of the signatures. The board shall verify the validity of | 9219 |
the signatures and report its findings to the court. | 9220 |
(2) Cause a copy of the complaint to be served on the board | 9221 |
member at least ten days before the hearing on the complaint. The | 9222 |
court shall hold a public hearing not later than thirty days after | 9223 |
the filing of the complaint. The court may subpoena witnesses and | 9224 |
compel their attendance in the same manner as in civil cases. | 9225 |
Process shall be served by the sheriff of the county in which the | 9226 |
witness resides. Witness fees and other fees in connection with | 9227 |
the proceedings shall be the same as in civil cases. The court may | 9228 |
suspend the board member pending the hearing. | 9229 |
If the court finds that one or more of the charges in the | 9230 |
complaint are true, it shall make a finding for removal of the | 9231 |
board member. The court's finding shall include a full, detailed | 9232 |
statement of the reasons for the removal. The finding shall be | 9233 |
filed with the clerk of the court and be made a matter of public | 9234 |
record. | 9235 |
The board member has the right of review or appeal to the | 9236 |
supreme court on leave first obtained. The supreme court shall | 9237 |
hear the case in not more than thirty court days after granting | 9238 |
leave. In other respects, the hearing shall follow the regular | 9239 |
procedure in appealable cases that originate in the court of | 9240 |
appeals. | 9241 |
(E) No individual who has been removed from the board | 9242 |
pursuant to this section shall be eligible to fill an elective or | 9243 |
appointed position as a member of the board. | 9244 |
Sec. 5505.049. A person who served as an elected or appointed | 9245 |
member of the state highway patrol retirement board for one or | 9246 |
more entire fiscal years in fiscal years 2000, 2001, or 2002 is | 9247 |
ineligible for re-election or reappointment to the board if the | 9248 |
board paid travel-related expenses of the person or reimbursed the | 9249 |
person for travel-related expenses that averaged more than ten | 9250 |
thousand dollars annually for those fiscal years. | 9251 |
Sec. 5505.06. (A) The members of the state highway patrol | 9252 |
retirement board shall be the trustees of the funds created by | 9253 |
section 5505.03 of the Revised Code. The board shall have full | 9254 |
power to invest the funds. The board and other fiduciaries shall | 9255 |
discharge their duties with respect to the funds solely in the | 9256 |
interest of the participants and beneficiaries; for the exclusive | 9257 |
purpose of providing benefits to participants and their | 9258 |
beneficiaries and defraying reasonable expenses of administering | 9259 |
the system; with care, skill, prudence, and diligence under the | 9260 |
circumstances then prevailing that a prudent person acting in a | 9261 |
like capacity and familiar with these matters would use in the | 9262 |
conduct of an enterprise of a like character and with like aims; | 9263 |
and by diversifying the investments of the system so as to | 9264 |
minimize the risk of large losses, unless under the circumstances | 9265 |
it is clearly prudent not to do so. | 9266 |
To facilitate investment of the funds, the board may | 9267 |
establish a partnership, trust, limited liability company, | 9268 |
corporation, including a corporation exempt from taxation under | 9269 |
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as | 9270 |
amended, or any other legal entity authorized to transact business | 9271 |
in this state. | 9272 |
(B) In exercising its fiduciary responsibility with respect | 9273 |
to the investment of the funds, it shall be the intent of the | 9274 |
board to give consideration to investments that enhance the | 9275 |
general welfare of the state and its citizens where the | 9276 |
investments offer quality, return, and safety comparable to other | 9277 |
investments currently available to the board. In fulfilling this | 9278 |
intent, equal consideration shall be given to investments | 9279 |
otherwise qualifying under this section that involve minority | 9280 |
owned and controlled firms and firms owned and controlled by | 9281 |
women, either alone or in joint venture with other firms. | 9282 |
The board shall adopt, in regular meeting, policies, | 9283 |
objectives, or criteria for the operation of the investment | 9284 |
program that include asset allocation targets and ranges, risk | 9285 |
factors, asset class benchmarks, time horizons, total return | 9286 |
objectives, and performance evaluation guidelines. In adopting | 9287 |
policies and criteria for the selection of agents with whom the | 9288 |
board may contract for the administration of the funds, the board | 9289 |
shall comply with sections 5505.062 and 5505.064 of the Revised | 9290 |
Code and shall also give equal consideration to minority owned and | 9291 |
controlled firms, firms owned and controlled by women, and joint | 9292 |
ventures involving minority owned and controlled firms and firms | 9293 |
owned and controlled by women that otherwise meet the policies and | 9294 |
criteria established by the board. Amendments and additions to the | 9295 |
policies and criteria shall be adopted in regular meeting. The | 9296 |
board shall publish its policies, objectives, and criteria under | 9297 |
this provision no less often than annually and shall make copies | 9298 |
available to interested parties. | 9299 |
When reporting on the performance of investments, the board | 9300 |
shall comply with the performance presentation standards | 9301 |
established by the association for investment management and | 9302 |
research. | 9303 |
(C) All evidences of title of the investments purchased by | 9304 |
the board shall be delivered to the treasurer of state, who is | 9305 |
hereby designated as the custodian thereof, or to the treasurer of | 9306 |
state's authorized agent. Evidences of title of the investments | 9307 |
may be deposited by the treasurer of state for safekeeping with an | 9308 |
authorized agent, selected by the treasurer of state, who is a | 9309 |
qualified trustee under section 135.18 of the Revised Code. The | 9310 |
treasurer of state shall collect the principal, interest, | 9311 |
dividends, and distributions that become due and payable and, when | 9312 |
collected, shall credit them to the custodial funds. | 9313 |
The treasurer of state shall pay for the investments | 9314 |
purchased by the board on receipt of written or electronic | 9315 |
instructions from the board or the board's designated agent | 9316 |
authorizing the purchase and pending receipt of the evidence of | 9317 |
title of the investment by the treasurer of state or the treasurer | 9318 |
of state's authorized agent. The board may sell investments held | 9319 |
by the board, and the treasurer of state or the treasurer of | 9320 |
state's authorized agent shall accept payment from the purchaser | 9321 |
and deliver evidence of title of the investment to the purchaser | 9322 |
on receipt of written or electronic instructions from the board or | 9323 |
the board's designated agent authorizing the sale, and pending | 9324 |
receipt of the moneys for the investments. The amount received | 9325 |
shall be placed in the custodial funds. The board and the | 9326 |
treasurer of state may enter into agreements to establish | 9327 |
procedures for the purchase and sale of investments under this | 9328 |
division and the custody of the investments. | 9329 |
(D) All of the board's business shall be transacted, all its | 9330 |
funds shall be invested, all warrants for money drawn and payments | 9331 |
shall be made, and all of its cash, securities, and other property | 9332 |
shall be held, in the name of the board or its nominee, provided | 9333 |
that nominees are authorized by board resolution for the purpose | 9334 |
of facilitating the ownership and transfer of investments. | 9335 |
(E) No purchase or sale of any investment shall be made under | 9336 |
this section except as authorized by the board. | 9337 |
(F) Any statement of financial position distributed by the | 9338 |
board shall include the fair value, as of the statement date, of | 9339 |
all investments held by the board under this section. | 9340 |
Sec. 5505.062. The state highway patrol retirement board | 9341 |
shall do all of the following: | 9342 |
(A) In consultation with the Ohio ethics commission, review | 9343 |
any existing policy regarding the travel and payment of travel | 9344 |
expenses of members and employees of the state highway patrol | 9345 |
retirement board and adopt rules in accordance with section | 9346 |
5505.04 of the Revised Code establishing a new or revised policy | 9347 |
regarding travel and payment of travel expenses. Not less than | 9348 |
sixty days before adopting a new or revised policy, the board | 9349 |
shall submit the policy to the Ohio retirement study council for | 9350 |
review. | 9351 |
(B) If the board intends to award a bonus to any employee of | 9352 |
the board, adopt rules in accordance with section 5505.04 of the | 9353 |
Revised Code establishing a policy regarding employee bonuses; | 9354 |
(C) Provide copies of the rules adopted under divisions (A) | 9355 |
and (B) of this section to each member of the Ohio retirement | 9356 |
study council; | 9357 |
(D) Submit to the Ohio retirement study council a proposed | 9358 |
operating budget, including an administrative budget for the | 9359 |
board, for the next immediate fiscal year and adopt that budget | 9360 |
not earlier than sixty days after it is submitted to the council; | 9361 |
(E) Submit to the council a plan describing how the board | 9362 |
will improve the dissemination of public information pertaining to | 9363 |
the board. | 9364 |
Sec. 5505.063. The state highway patrol retirement board | 9365 |
shall, in consultation with the Ohio ethics commission, develop an | 9366 |
ethics policy to govern board members and employees in the | 9367 |
performance of their official duties. The board shall submit this | 9368 |
policy to the commission for approval. | 9369 |
The commission shall review the policy and, if the commission | 9370 |
determines that the policy is adequate, approve the policy. If the | 9371 |
commission determines that the policy is inadequate, it shall | 9372 |
specify the revisions to be made and the board shall submit a | 9373 |
revised policy. If the commission approves the revised policy, the | 9374 |
board shall adopt it. If not, the board shall make any further | 9375 |
revisions required by the commission and adopt the policy. Not | 9376 |
less than sixty days before adopting the policy, the board shall | 9377 |
submit it to the Ohio retirement study council for review. | 9378 |
The board periodically shall provide ethics training to | 9379 |
members and employees of the board. The training shall include | 9380 |
training regarding the requirements and prohibitions of Chapter | 9381 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 9382 |
Revised Code and any other training the board considers | 9383 |
appropriate. | 9384 |
The board shall establish a procedure to ensure that each | 9385 |
employee of the board is informed of the procedure for filing a | 9386 |
complaint alleging violation of Chapter 102. of the Revised Code | 9387 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 9388 |
ethics commission or the appropriate prosecuting attorney. | 9389 |
Sec. 5505.064. Each newly elected member of the state | 9390 |
highway patrol retirement board and each individual appointed to | 9391 |
fill a vacancy on the board, shall, not later than ninety days | 9392 |
after commencing service as a board member, complete the | 9393 |
orientation program component of the retirement board member | 9394 |
education program established under section 171.50 of the Revised | 9395 |
Code. | 9396 |
Each member of the board who has served a year or longer as a | 9397 |
board member shall, not less than twice each year, attend one or | 9398 |
more programs that are part of the continuing education component | 9399 |
of the retirement board member education program established under | 9400 |
section 171.50 of the Revised Code. | 9401 |
Sec. 5505.065. (A) The state highway patrol retirement board | 9402 |
shall designate a person who is a licensed state retirement system | 9403 |
investment officer to be the chief investment officer for the | 9404 |
state highway patrol retirement system. The board shall notify the | 9405 |
division of securities of the department of commerce in writing of | 9406 |
its designation and of any change in its designation within ten | 9407 |
calendar days of the designation or change. | 9408 |
(B) The chief investment officer shall reasonably supervise | 9409 |
the licensed state retirement system investment officers and other | 9410 |
persons employed by the state highway patrol retirement system | 9411 |
with a view toward preventing violations of Chapter 1707. of the | 9412 |
Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. | 9413 |
and following, the "Securities Act of 1933," 48 Stat. 74, 15 | 9414 |
U.S.C. and following, and the "Securities Exchange Act of 1934," | 9415 |
48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and | 9416 |
regulations promulgated under those statutes. This duty of | 9417 |
reasonable supervision shall include the adoption, implementation, | 9418 |
and enforcement of written policies and procedures reasonably | 9419 |
designed to prevent persons employed by the state highway patrol | 9420 |
retirement system from misusing material, nonpublic information in | 9421 |
violation of those laws, rules, and regulations. | 9422 |
For purposes of this division, no chief investment officer | 9423 |
shall be considered to have failed to satisfy the officer's duty | 9424 |
of reasonable supervision if the officer has done all of the | 9425 |
following: | 9426 |
(1) Adopted and implemented written procedures, and a system | 9427 |
for applying the procedures, that would reasonably be expected to | 9428 |
prevent and detect, insofar as practicable, any violation by its | 9429 |
licensed investment officers and other persons employed by the | 9430 |
state highway patrol retirement system; | 9431 |
(2) Reasonably discharged the duties and obligations | 9432 |
incumbent on the chief investment officer by reason of the | 9433 |
established procedures and the system for applying the procedures | 9434 |
when the officer had no reasonable cause to believe that there was | 9435 |
a failure to comply with the procedures and systems; | 9436 |
(3) Reviewed, at least annually, the adequacy of the policies | 9437 |
and procedures established pursuant to this section and the | 9438 |
effectiveness of their implementation. | 9439 |
(C) The chief investment officer shall establish and maintain | 9440 |
a policy to monitor and evaluate the effectiveness of securities | 9441 |
transactions executed on behalf of the board. | 9442 |
No chief investment officer shall be considered to have | 9443 |
failed to satisfy the officer's duty under this section if the | 9444 |
officer has done both of the following: | 9445 |
(1) Implemented the policy adopted by the board under section | 9446 |
5505.068 of the Revised Code that outlines the criteria used to | 9447 |
select agents that execute securities transactions on behalf of | 9448 |
the state highway patrol retirement system. | 9449 |
(2) Reviewed, at least annually, the performance of agents | 9450 |
that execute securities transactions on behalf of the state | 9451 |
highway patrol retirement system. | 9452 |
Sec. 5505.068. (A) As used in this section and in section | 9453 |
5505.0610 of the Revised Code: | 9454 |
(1) "Agent" means a dealer, as defined in section 1707.01 of | 9455 |
the Revised Code, who is licensed under sections 1707.01 to | 9456 |
1707.45 of the Revised Code or under comparable laws of another | 9457 |
state or of the United States. | 9458 |
(2) "Minority business enterprise" has the same meaning as in | 9459 |
section 122.71 of the Revised Code. | 9460 |
(3) "Ohio-qualified agent" means an agent designated as such | 9461 |
by the state highway patrol retirement board. | 9462 |
(4) "Ohio-qualified investment manager" means an investment | 9463 |
manager designated as such by the state highway patrol retirement | 9464 |
board. | 9465 |
(5) "Principal place of business" means an office in which | 9466 |
the agent regularly provides securities or investment advisory | 9467 |
services and solicits, meets with, or otherwise communicates with | 9468 |
clients. | 9469 |
(B) The state highway patrol retirement board shall, for the | 9470 |
purposes of this section, designate an agent as an Ohio-qualified | 9471 |
agent if the agent meets all of the following requirements: | 9472 |
(1) The agent is subject to taxation under Chapter 5725., | 9473 |
5733., or 5747. of the Revised Code. | 9474 |
(2) The agent is authorized to conduct business in this | 9475 |
state; | 9476 |
(3) The agent maintains a principal place of business in this | 9477 |
state and employs at least five residents of this state. | 9478 |
(C) The state highway patrol retirement board shall adopt and | 9479 |
implement a written policy to establish criteria and procedures | 9480 |
used to select agents to execute securities transactions on behalf | 9481 |
of the retirement system. The policy shall address each of the | 9482 |
following: | 9483 |
(1) Commissions charged by the agent, both in the aggregate | 9484 |
and on a per share basis; | 9485 |
(2) The execution speed and trade settlement capabilities of | 9486 |
the agent; | 9487 |
(3) The responsiveness, reliability, and integrity of the | 9488 |
agent; | 9489 |
(4) The nature and value of research provided by the agent; | 9490 |
(5) Any special capabilities of the agent. | 9491 |
(D)(1) The board shall, at least annually, establish a policy | 9492 |
with the goal to increase utilization by the board of | 9493 |
Ohio-qualified agents for the execution of domestic equity and | 9494 |
fixed income trades on behalf of the retirement system, when an | 9495 |
Ohio-qualified agent offers quality, services, and safety | 9496 |
comparable to other agents otherwise available to the board and | 9497 |
meets the criteria established under division (C) of this section. | 9498 |
(2) The board shall review, at least annually, the | 9499 |
performance of the agents that execute securities transactions on | 9500 |
behalf of the board. | 9501 |
(3) The board shall determine whether an agent is an | 9502 |
Ohio-qualified agent, meets the criteria established by the board | 9503 |
pursuant to division (C) of this section, and offers quality, | 9504 |
services, and safety comparable to other agents otherwise | 9505 |
available to the board. The board's determination shall be final. | 9506 |
(E) The board shall, at least annually, submit to the Ohio | 9507 |
retirement study council a report containing the following | 9508 |
information: | 9509 |
(1) The name of each agent designated as an Ohio-qualified | 9510 |
agent under this section; | 9511 |
(2) The name of each agent that executes securities | 9512 |
transactions on behalf of the board; | 9513 |
(3) The amount of equity and fixed-income trades that are | 9514 |
executed by Ohio-qualified agents, expressed as a percentage of | 9515 |
all equity and fixed-income trades that are executed by agents on | 9516 |
behalf of the board; | 9517 |
(4) The compensation paid to Ohio-qualified agents, expressed | 9518 |
as a percentage of total compensation paid to all agents that | 9519 |
execute securities transactions on behalf of the board; | 9520 |
(5) The amount of equity and fixed-income trades that are | 9521 |
executed by agents that are minority business enterprises, | 9522 |
expressed as a percentage of all equity and fixed-income trades | 9523 |
that are executed by agents on behalf of the board; | 9524 |
(6) Any other information requested by the Ohio retirement | 9525 |
study council regarding the board's use of agents. | 9526 |
Sec. 5505.069. (A) The state highway patrol retirement system | 9527 |
shall disclose the following to the Ohio ethics commission: | 9528 |
(1) Anything of value received by the system from an agent | 9529 |
and anything of value given on behalf of the system by an agent; | 9530 |
(2) The name of any employee of the system with authority | 9531 |
over the investment of retirement system funds or any board member | 9532 |
of the system who deals with an agent regarding amounts described | 9533 |
in division (A)(1) of this section. | 9534 |
(B) The disclosures required by this section shall be made | 9535 |
annually in a report submitted by a date prescribed by the Ohio | 9536 |
ethics commission. | 9537 |
Sec. 5505.0610. (A) The state highway patrol retirement board | 9538 |
shall, for the purposes of this section, designate an investment | 9539 |
manager as an Ohio-qualified investment manager if the investment | 9540 |
manager meets all of the following requirements: | 9541 |
(1) The investment manager is subject to taxation under | 9542 |
Chapter 5725., 5733., or 5747. of the Revised Code. | 9543 |
(2) The investment manager meets one of the following | 9544 |
requirements: | 9545 |
(a) Has its corporate headquarters or principal place of | 9546 |
business in this state; | 9547 |
(b) Employs at least five hundred individuals in this state; | 9548 |
(c) Has a principal place of business in this state and | 9549 |
employs at least 20 residents of this state. | 9550 |
(B)(1) The board shall, at least annually, establish a policy | 9551 |
with the goal to increase utilization by the board of | 9552 |
Ohio-qualified investment managers, when an Ohio-qualified | 9553 |
investment manager offers quality, services, and safety comparable | 9554 |
to other investment managers otherwise available to the board. The | 9555 |
policy shall also provide for the following: | 9556 |
(a) A process whereby the board can develop a list of | 9557 |
Ohio-qualified investment managers and their investment products; | 9558 |
(b) A process whereby the board can give public notice to | 9559 |
Ohio-qualified investment managers of the board's search for an | 9560 |
investment manager that includes the board's search criteria. | 9561 |
(2) The board shall determine whether an investment manager | 9562 |
is an Ohio-qualified investment manager and whether the investment | 9563 |
manager offers quality, services, and safety comparable to other | 9564 |
investment managers otherwise available to the board. The board's | 9565 |
determination shall be final. | 9566 |
(C) The board shall, at least annually, submit to the Ohio | 9567 |
retirement study council a report containing the following | 9568 |
information: | 9569 |
(1) The name of each investment manager designated as an | 9570 |
Ohio-qualified investment manager under this section; | 9571 |
(2) The name of each investment manager with which the board | 9572 |
contracts; | 9573 |
(3) The amount of assets managed by Ohio-qualified investment | 9574 |
managers, expressed as a percentage of the total assets held by | 9575 |
the retirement system and as a percentage of assets managed by | 9576 |
investment managers with which the board has contracted; | 9577 |
(4) The compensation paid to Ohio-qualified investment | 9578 |
managers, expressed as a percentage of total compensation paid to | 9579 |
all investment managers with which the board has contracted; | 9580 |
(5) Any other information requested by the Ohio retirement | 9581 |
study council regarding the board's use of investment managers. | 9582 |
Sec. 5505.07. (A) The state highway patrol retirement board | 9583 |
may employ a secretary and secure the services of employees for | 9584 |
the transaction of business of the state highway patrol retirement | 9585 |
system. | 9586 |
Effective ninety days after the effective date of this | 9587 |
amendment, the board may not employ a state retirement system | 9588 |
investment officer, as defined in section 1707.01 of the Revised | 9589 |
Code, who does not hold a valid state retirement system investment | 9590 |
officer license issued by the division of securities in the | 9591 |
department of commerce. | 9592 |
The compensation of all persons engaged by the board and all | 9593 |
other expenses of the board necessary for the proper operation of | 9594 |
the pension fund shall be paid at such rates and in such amounts | 9595 |
as the board approves. Every expense voucher of an employee, | 9596 |
officer, or board member of the state highway patrol retirement | 9597 |
system shall itemize all purchases and expenditures. | 9598 |
(B) The clerical procedures required in the operation of the | 9599 |
retirement system shall be performed by the staff of the secretary | 9600 |
appointed by the board. The cost of such clerical procedures and | 9601 |
the services performed by the secretary of the retirement system | 9602 |
shall be paid by the retirement system. | 9603 |
(C) The board shall appoint an actuary who shall be its | 9604 |
technical advisor. | 9605 |
(D) The board shall from time to time adopt such mortality | 9606 |
and other tables of experience, and such rate or rates of | 9607 |
interest, as are required in the proper operation of the | 9608 |
retirement system. | 9609 |
(E) The board shall determine by appropriate rules the | 9610 |
service to be credited any member in any calendar year. | 9611 |
The board shall perform other functions and adopt rules as | 9612 |
required for the proper execution of Chapter 5505. of the Revised | 9613 |
Code. | 9614 |
Sec. 5505.111. The state highway patrol retirement board | 9615 |
shall appoint a committee to oversee the selection of an internal | 9616 |
auditor. The committee shall select one or more persons for | 9617 |
employment as an internal auditor. The board shall employ the | 9618 |
person or persons selected by the committee. | 9619 |
The committee shall consist of the following board members: | 9620 |
one retirant member, one employee member, and one ex officio | 9621 |
member. The committee shall annually prepare and submit to the | 9622 |
Ohio retirement study council a report of its actions during the | 9623 |
preceding year. | 9624 |
Sec. 5505.122. If the Ohio retirement study council | 9625 |
establishes a uniform format for any report the state highway | 9626 |
patrol retirement board is required to submit to the council, the | 9627 |
board shall submit the report in that format. | 9628 |
Sec. 5505.99. (A) Whoever violates division (A) of section | 9629 |
5505.045 of the Revised Code shall be fined not more than one | 9630 |
hundred dollars for each day of the violation. | 9631 |
(B) Whoever violates division (B) of section 5505.045 of the | 9632 |
Revised Code shall be imprisoned for not more than six months or | 9633 |
fined not more than five thousand dollars, or both. | 9634 |
(C) Fines imposed by the Ohio elections commission under this | 9635 |
section shall be paid into the Ohio elections commission fund | 9636 |
created under section 3513.10 of the Revised Code. | 9637 |
Section 2. That existing sections 101.34, 101.99, 102.02, | 9638 |
102.03, 102.06, 117.10, 145.04, 145.05, 145.051, 145.06, 145.09, | 9639 |
145.11, 145.19, 145.193, 145.27, 145.40, 171.01, 171.03, 171.04, | 9640 |
742.03, 742.04, 742.05, 742.10, 742.11, 742.41, 1707.01, 1707.03, | 9641 |
1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, | 9642 |
1707.39, 1707.431, 1707.44, 1707.46, 3105.80, 3305.01, 3305.02, | 9643 |
3305.03, 3305.05, 3305.051, 3305.06, 3305.07, 3307.01, 3307.03, | 9644 |
3307.05, 3307.06, 3307.07, 3307.071, 3307.10, 3307.11, 3307.15, | 9645 |
3307.20, 3307.25, 3307.56, 3307.71, 3309.03, 3309.05, 3309.06, | 9646 |
3309.061, 3309.07, 3309.09, 3309.14, 3309.15, 3309.22, 3309.251, | 9647 |
3309.42, 5505.04, 5505.06, and 5505.07 of the Revised Code are | 9648 |
hereby repealed. | 9649 |
Section 3. Section 1707.162 of the Revised Code, as enacted | 9650 |
by this act, shall take effect ninety days after the effective | 9651 |
date of this section. | 9652 |
Section 4. Sections 145.19, 145.193, 145.40, 3105.80, | 9653 |
3305.01, 3305.02, 3305.03, 3305.05, 3305.051, 3305.06, 3305.07, | 9654 |
3307.01, 3307.25, 3307.56, 3307.71, 3309.251, and 3309.42 of the | 9655 |
Revised Code, as amended by this act; sections 3305.05 (3305.051) | 9656 |
and 3305.051 (3305.052), as amended by this act for the purpose of | 9657 |
adopting new section numbers as indicated in parentheses; and new | 9658 |
section 3305.05 and section 3305.053 of the Revised Code, as | 9659 |
enacted by this act, shall take effect on August 1, 2005. | 9660 |
Section 5. Nothing in this act shall affect the term of any | 9661 |
elected member of a state retirement board serving on the | 9662 |
effective date of this act. | 9663 |
The additional members of the state retirement systems to be | 9664 |
appointed pursuant to this act shall be appointed and take office | 9665 |
not later than ninety days after the effective date of this act, | 9666 |
except that an investment expert member appointed jointly by the | 9667 |
Speaker of the House of Representatives and the President of the | 9668 |
Senate shall not immediately take office if taking office would | 9669 |
result in an even number of members on that state retirement | 9670 |
board. The member shall take office at the earliest time that | 9671 |
taking office will result in an odd number of members on that | 9672 |
board. | 9673 |
Not later than ninety days after the effective date of this | 9674 |
act, the Governor shall appoint the initial additional retirant | 9675 |
member of the public employees retirement board created by this | 9676 |
act. The retirant member shall hold office until the next board | 9677 |
election that occurs not less than ninety days after the | 9678 |
appointment. | 9679 |
Not later than ninety days after the effective date of this | 9680 |
act, the Governor shall appoint the initial additional retired | 9681 |
teacher member position created by this act. The retired teacher | 9682 |
member shall hold office until the next board election that occurs | 9683 |
not less than ninety days after the appointment. | 9684 |
Not later than ninety days after the effective date of this | 9685 |
act, the Governor shall appoint the initial additional retirant | 9686 |
member of the school employees retirement board created by this | 9687 |
act. The retirant member shall hold office until the next board | 9688 |
election that occurs not less than ninety days after the | 9689 |
appointment. | 9690 |
Not later than ninety days after the effective date of this | 9691 |
act, the Governor shall appoint the initial additional retirant | 9692 |
member of the state highway patrol retirement board created by | 9693 |
this act. The retirant member shall hold office until the next | 9694 |
board election that occurs not less than ninety days after the | 9695 |
appointment. | 9696 |
Section 6. Nothing in this act shall be construed to be a | 9697 |
limitation of the Ohio Ethics Commission's authority, | 9698 |
responsibility, and powers under Chapter 102. of the Revised Code | 9699 |
as it existed immediately prior to the effective date of this act | 9700 |
as applied to members and employees of the state retirement | 9701 |
boards. Any authority, power, or responsibilities of the Ohio | 9702 |
Ethics Commission expressly created by this act are in addition to | 9703 |
any authority, power, or responsibilities of the Commission in | 9704 |
effect immediately prior to the effective date of this act. | 9705 |
Section 7. A member of a state retirement board who, pursuant | 9706 |
to this act, is replaced on that board by an elected or appointed | 9707 |
member shall remain in office until the replacement member is | 9708 |
appointed or elected. | 9709 |
Section 8. Section 742.41 of the Revised Code is presented | 9710 |
in this act as a composite of the section as amended by both Sub. | 9711 |
H.B. 535 and Am. Sub. S.B. 180 of the 123rd General Assembly. | 9712 |
Section 3307.20 of the Revised Code is presented in this act as a | 9713 |
composite of the section as amended by both Sub. H.B. 535 and Am. | 9714 |
Sub. S.B. 180 of the 123rd General Assembly. Section 3309.22 of | 9715 |
the Revised Code is presented in this act as a composite of the | 9716 |
section as amended by Sub. H.B. 535, Sub. S.B. 270, and Am. Sub. | 9717 |
S.B. 180 all of the 123rd General Assembly. Section 5505.04 of the | 9718 |
Revised Code is presented in this act as a composite of the | 9719 |
section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of | 9720 |
the 123rd General Assembly. The General Assembly, applying the | 9721 |
principle stated in division (B) of section 1.52 of the Revised | 9722 |
Code that amendments are to be harmonized if reasonably capable of | 9723 |
simultaneous operation, finds that the composites are the | 9724 |
resulting versions of the sections in effect prior to the | 9725 |
effective dates of the sections as presented in this act. | 9726 |