As Passed by the House

125th General Assembly
Regular Session
2003-2004
Sub. S. B. No. 133


SENATORS Wachtmann, Schuring, Austria, Amstutz, Stivers, Harris, Spada, Coughlin, Armbruster, Jordan, Randy Gardner, Jacobson, Carnes, Robert Gardner, Miller, Mumper, Nein, White, Schuler

REPRESENTATIVES Schmidt, Reidelbach, White, G. Smith, Schneider, Brinkman, Buehrer, Cates, Clancy, Collier, Flowers, Hagan, Martin, Peterson, Setzer, Trakas, Webster, Willamowski



A BILL
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


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

       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 of77
representatives, not more than three from the same political78
party, and six members of the committee shall be members of the79
senate appointed by the president of the senate, not more than80
three from the same political party. A vacancy in the committee81
shall be filled for the unexpired term in the same manner as an82
original appointment. The members of the committee shall be83
appointed within fifteen days after the first day of the first84
regular session of each general assembly and the committee shall85
meet and proceed to recommend an ethics code not later than thirty86
days after the first day of the first regular session of each87
general assembly.88

       In the first regular session of each general assembly, the89
speaker of the house of representatives shall appoint the90
chairperson of the committee from among the house members of the91
committee and the president of the senate shall appoint the92
vice-chairperson of the committee from among the senate members of93
the committee. In the second regular session of each general94
assembly, the president of the senate shall appoint the95
chairperson of the committee from among the senate members of the96
committee and the speaker of the house of representatives shall97
appoint the vice-chairperson of the committee from among the house98
members of the committee. The chairperson, vice-chairperson, and99
members of the committee shall serve until their respective100
successors are appointed or until they are no longer members of101
the general assembly.102

       The committee shall meet at the call of the chairperson or103
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 the107
general assembly and all candidates for the office of member of108
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 complaint114
filed pursuant to this section and to that end may enforce the115
attendance and testimony of witnesses, and the production of books116
and papers;117

       (4) May recommend whatever sanction is appropriate with118
respect to a particular member, employee, or candidate as will119
best maintain in the minds of the public a good opinion of the120
conduct and character of members and employees of the general121
assembly;122

       (5) May recommend legislation to the general assembly123
relating to the conduct and ethics of members and employees of and124
candidates for the general assembly;125

       (6) Shall employ an executive director for the committee and126
may employ such other staff as the committee determines necessary127
to assist it in exercising its powers and duties. The executive128
director and staff of the committee shall be known as the office129
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 in135
exercising its powers and duties. The appointment and removal of a 136
special counsel shall require the approval of at least eight137
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 questions140
relating to ethics, possible conflicts of interest, and financial141
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 Revised149
Code any rules that are necessary to implement and clarify Chapter150
102. and sections 2921.42 and 2921.43 of the Revised Code.151

       (C) There is hereby created in the state treasury the joint152
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 statements157
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 a160
written report, not later than the thirty-first day of January of161
each year, to the speaker and minority leader of the house of162
representatives and to the president and minority leader of the163
senate that lists the number of committee meetings and164
investigations the committee conducted during the immediately165
preceding calendar year and the number of advisory opinions it166
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 for172
any names of specific individuals and entities contained in the173
report. If the committee recommends disciplinary action or reports 174
its findings to the appropriate prosecuting authority for175
proceedings in prosecution of the violations alleged in the176
complaint, the investigatory report regarding the complaint shall177
become a public record in its entirety.178

       (F)(1) Any file obtained by or in the possession of the179
former house ethics committee or former senate ethics committee180
shall become the property of the joint legislative ethics181
committee. Any such file is confidential if either of the182
following applies:183

       (a) It is confidential under section 102.06 of the Revised184
Code or the legislative code of ethics.185

       (b) If the file was obtained from the former house ethics186
committee or from the former senate ethics committee, it was187
confidential under any statute or any provision of a code of188
ethics that governed the file.189

       (2) As used in this division, "file" includes, but is not190
limited to, evidence, documentation, or any other tangible thing.191

       Sec. 101.90.  As used in sections 101.90 to 101.99 of the192
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 of204
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 other209
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," 48219
Stat. 74, 15 U.S.C.A. and following, or that is governed by a220
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 system234
lobbyist's employer, or a member of the immediate family of the 235
retirement system lobbyist or the retirement system lobbyist's 236
employer; and237

       (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 or243
activity described in division (E) of this section if it is244
available to the general public on the same terms, or if it is an245
offer or sale of securities to any person listed in division246
(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 the248
"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 in277
retirement system decisions who, under Section 3 of Article I,278
Ohio Constitution, assembles together with other persons to279
consult for their common good, instructs a person listed in the280
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 gathering283
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 the288
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 each309
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 the314
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 system317
lobbyist is acting, if it is different from the employer. For the 318
purposes of division (A) of this section, where a trade319
association or other charitable or fraternal organization that is320
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 the323
association or organization, so long as the association or324
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 statement330
required by division (A) of this section, each retirement system331
lobbyist and employer shall file with the joint committee, not332
later than the last day of January, May, and September of each333
year, an updated registration statement that confirms the334
continuing existence of each engagement described in an initial335
registration statement and that lists the specific retirement 336
system decisions that the lobbyist sought to influence under the337
engagement during the period covered by the updated statement, and 338
with it any statement of expenditures required to be filed by339
section 101.93 of the Revised Code and any details of financial340
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 and344
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 division351
(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 an355
engagement, the executive agency lobbyist who was employed under356
the engagement shall send written notification of the termination357
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 be370
responsible for reviewing each registration statement filed with371
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 executive399
agency or any aggrieved party may consider the failure of the400
employer or the retirement system lobbyist to comply with this401
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 certification404
from any person seeking the award of a contract, grant, lease, or405
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 each408
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 expenditures411
as specified in divisions (B) and (C) of this section. A 412
retirement system lobbyist shall file a separate statement of413
expenditures under this section for each employer that engages the 414
retirement system lobbyist.415

       (B)(1) In addition to the information required by divisions416
(B)(2) and (3) of this section, a statement filed by a retirement 417
system lobbyist shall show the total amount of expenditures made418
during the reporting period covered by the statement by the419
retirement system lobbyist.420

       (2) If, during a reporting period covered by a statement, an421
employer or any retirement system lobbyist the employer engaged422
made, either separately or in combination with each other,423
expenditures to, at the request of, for the benefit of, or on424
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 shall429
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 lobbyist438
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 meals441
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 system450
lobbyist shall also state regarding those expenditures the name of451
the member, official, or employee to whom, at whose request, for452
whose benefit, or on whose behalf the expenditures were made, the453
total amount of the expenditures made, a brief description of the454
expenditures made, the approximate date the expenditures were455
made, the retirement system decision, if any, sought to be456
influenced, and the identity of the client on whose behalf the457
expenditure was made.458

       (C) In addition to the information required by divisions459
(B)(2) and (3) of this section, a statement filed by an employer460
shall show the total amount of expenditures made by the employer461
filing the statement during the period covered by the statement.462
As used in this section, "expenditures" does not include the463
expenses of maintaining office facilities, or the compensation464
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 a468
statement filed under this division if the expenditure is reported469
on a statement filed under division (B)(1), (2), or (3) of this470
section by a retirement system lobbyist engaged by the employer.471

       (D) Any statement required to be filed under this section472
shall be filed at the times specified in section 121.62 of the473
Revised Code. Each statement shall cover expenditures made during474
the four-calendar-month period that ended on the last day of the475
month immediately preceding the month in which the statement is476
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 or479
values of expenditures, reporting of good faith estimates, based480
on reasonable accounting procedures, constitutes compliance with481
this division.482

       (F) Retirement system lobbyists and employers shall retain483
receipts or maintain records for all expenditures that are484
required to be reported pursuant to this section. These receipts485
or records shall be maintained for a period ending on the486
thirty-first day of December of the second calendar year after the487
year in which the expenditure was made.488

       (G)(1) At least ten days before the date on which the489
statement is filed, each employer or retirement system lobbyist490
who is required to file an expenditure statement under division491
(B)(2) or (3) of this section shall deliver a copy of the492
statement, or the portion showing the expenditure, to the member, 493
official, or employee who is listed in the statement as having494
received the expenditure or on whose behalf it was made.495

       (2) If, during a reporting period covered by an expenditure496
statement filed under division (B)(2) of this section, an employer497
or any retirement system lobbyist the employer engaged made,498
either separately or in combination with each other, either499
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 the562
transaction was made if the financial transaction to which the563
statement pertains is reported by a retirement system lobbyist564
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 joint579
legislative ethics committee. The time for filing a disputed580
expenditure or financial transaction in any statement of581
expenditures or the details of a financial transaction shall be582
extended pending the final decision of the commission. This583
extension does not extend the time for filing the nondisputed584
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 financial587
transaction should be reported, the employer or retirement system588
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 false592
statement of expenditures or details of a financial transaction is 593
liable in a civil action to any member, official, or employee who594
sustains damage as a result of the filing or publication of the595
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 to609
members of bona fide associations or charitable or fraternal610
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 an614
expenditure by any person if the contribution or expenditure is615
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 system624
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 sales630
employees who are not retirement system lobbyists.631

       Sec. 101.98.  (A) The joint legislative ethics committee632
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 joint635
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 of641
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 that662
explains in clear and concise language the provisions of sections663
101.90 to 101.98 of the Revised Code and make it available free of 664
charge to retirement system lobbyists, employers, and any other665
interested persons.666

       Sec. 101.981.  The attorney general and any assistant or 667
special counsel designated by the attorney general may investigate668
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 report671
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 division682
(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 and703
discipline of the supreme court and the ethics commission created704
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 cooperative710
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 of717
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 shall file with the 730
appropriate ethics commission on a form prescribed by the 731
commission, a statement disclosing all of the following:.732

       The disclosure statement shall include all of the following:733

       (1) The name of the person filing the statement and each734
member of the person's immediate family and all names under which735
the person or members of the person's immediate family do736
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 or743
benefit, by the person filing the statement, and a brief744
description of the nature of the services for which the income was745
received. If the person filing the statement is a member of the746
general assembly, the statement shall identify the amount of every747
source of income received in accordance with the following ranges748
of amounts: zero or more, but less than one thousand dollars; one749
thousand dollars or more, but less than ten thousand dollars; ten750
thousand dollars or more, but less than twenty-five thousand751
dollars; twenty-five thousand dollars or more, but less than fifty752
thousand dollars; fifty thousand dollars or more, but less than753
one hundred thousand dollars; and one hundred thousand dollars or754
more. Division (A)(2)(a) of this section shall not be construed to 755
require a person filing the statement who derives income from a756
business or profession to disclose the individual items of income757
that constitute the gross income of that business or profession,758
except for those individual items of income that are attributable759
to the person's or, if the income is shared with the person, the760
partner's, solicitation of services or goods or performance,761
arrangement, or facilitation of services or provision of goods on762
behalf of the business or profession of clients, including763
corporate clients, who are legislative agents as defined in764
section 101.70 of the Revised Code. A person who files the765
statement under this section shall disclose the identity of and766
the amount of income received from a person who the public767
official or employee knows or has reason to know is doing or768
seeking to do business of any kind with the public official's or769
employee's agency.770

       (b) If the person filing the statement is a member of the771
general assembly, the statement shall identify every source of772
income and the amount of that income that was received from a773
legislative agent, as defined in section 101.70 of the Revised774
Code, during the preceding calendar year, in the person's own name775
or by any other person for the person's use or benefit, by the776
person filing the statement, and a brief description of the nature777
of the services for which the income was received. Division778
(A)(2)(b) of this section requires the disclosure of clients of779
attorneys or persons licensed under section 4732.12 of the Revised780
Code, or patients of persons certified under section 4731.14 of781
the Revised Code, if those clients or patients are legislative782
agents. Division (A)(2)(b) of this section requires a person783
filing the statement who derives income from a business or784
profession to disclose those individual items of income that785
constitute the gross income of that business or profession that786
are received from legislative agents.787

       (c) Except as otherwise provided in division (A)(2)(c) of788
this section, division (A)(2)(a) of this section applies to789
attorneys, physicians, and other persons who engage in the790
practice of a profession and who, pursuant to a section of the791
Revised Code, the common law of this state, a code of ethics792
applicable to the profession, or otherwise, generally are required793
not to reveal, disclose, or use confidences of clients, patients,794
or other recipients of professional services except under795
specified circumstances or generally are required to maintain796
those types of confidences as privileged communications except797
under specified circumstances. Division (A)(2)(a) of this section798
does not require an attorney, physician, or other professional799
subject to a confidentiality requirement as described in division800
(A)(2)(c) of this section to disclose the name, other identity, or801
address of a client, patient, or other recipient of professional802
services if the disclosure would threaten the client, patient, or803
other recipient of professional services, would reveal details of804
the subject matter for which legal, medical, or professional805
advice or other services were sought, or would reveal an otherwise806
privileged communication involving the client, patient, or other807
recipient of professional services. Division (A)(2)(a) of this808
section does not require an attorney, physician, or other809
professional subject to a confidentiality requirement as described810
in division (A)(2)(c) of this section to disclose in the brief811
description of the nature of services required by division812
(A)(2)(a) of this section any information pertaining to specific813
professional services rendered for a client, patient, or other814
recipient of professional services that would reveal details of815
the subject matter for which legal, medical, or professional816
advice was sought or would reveal an otherwise privileged817
communication involving the client, patient, or other recipient of818
professional services.819

       (3) The name of every corporation on file with the secretary820
of state that is incorporated in this state or holds a certificate821
of compliance authorizing it to do business in this state, trust,822
business trust, partnership, or association that transacts823
business in this state in which the person filing the statement or824
any other person for the person's use and benefit had during the825
preceding calendar year an investment of over one thousand dollars826
at fair market value as of the thirty-first day of December of the827
preceding calendar year, or the date of disposition, whichever is828
earlier, or in which the person holds any office or has a829
fiduciary relationship, and a description of the nature of the830
investment, office, or relationship. Division (A)(3) of this831
section does not require disclosure of the name of any bank,832
savings and loan association, credit union, or building and loan833
association with which the person filing the statement has a834
deposit or a withdrawable share account.835

       (4) All fee simple and leasehold interests to which the836
person filing the statement holds legal title to or a beneficial837
interest in real property located within the state, excluding the838
person's residence and property used primarily for personal839
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 all849
state-chartered savings and loan associations and of all service850
corporations subject to regulation under division (E)(2) of851
section 1151.34 of the Revised Code to whom the superintendent in852
the superintendent's own name or in the name of any other person 853
owes any money, and that the superintendent and any deputy854
superintendent of banks shall disclose the names of all855
state-chartered banks and all bank subsidiary corporations subject856
to regulation under section 1109.44 of the Revised Code to whom857
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 the870
Revised Code, the source of each gift of over seventy-five871
dollars, or of each gift of over twenty-five dollars received by a872
member of the general assembly from a legislative agent, received873
by the person in the person's own name or by any other person for874
the person's use or benefit during the preceding calendar year,875
except gifts received by will or by virtue of section 2105.06 of876
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 person880
filing the statement stands in loco parentis, or received by way881
of distribution from any inter vivos or testamentary trust882
established by a spouse or by an ancestor;883

       (8) Except as otherwise provided in section 102.022 of the884
Revised Code, identification of the source and amount of every885
payment of expenses incurred for travel to destinations inside or886
outside this state that is received by the person in the person's887
own name or by any other person for the person's use or benefit888
and that is incurred in connection with the person's official889
duties, except for expenses for travel to meetings or conventions890
of a national or state organization to which any state agency,891
including, but not limited to, any legislative agency or state892
institution of higher education as defined in section 3345.011 of893
the Revised Code, pays membership dues, or any political894
subdivision or any office or agency of a political subdivision895
pays membership dues;896

       (9) Except as otherwise provided in section 102.022 of the897
Revised Code, identification of the source of payment of expenses898
for meals and other food and beverages, other than for meals and899
other food and beverages provided at a meeting at which the person900
participated in a panel, seminar, or speaking engagement or at a901
meeting or convention of a national or state organization to which 902
any state agency, including, but not limited to, any legislative903
agency or state institution of higher education as defined in904
section 3345.011 of the Revised Code, pays membership dues, or any905
political subdivision or any office or agency of a political906
subdivision pays membership dues, that are incurred in connection907
with the person's official duties and that exceed one hundred908
dollars aggregated per calendar year;909

       (10) If the financial disclosure statement is filed by a910
public official or employee described in division (B)(2) of911
section 101.73 of the Revised Code or division (B)(2) of section912
121.63 of the Revised Code who receives a statement from a913
legislative agent, executive agency lobbyist, or employer that914
contains the information described in division (F)(2) of section915
101.73 of the Revised Code or division (G)(2) of section 121.63 of916
the Revised Code, all of the nondisputed information contained in917
the statement delivered to that public official or employee by the918
legislative agent, executive agency lobbyist, or employer under919
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of920
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 the923
Revised Code.924

       A person may file a statement required by this section in925
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 the933
fifteenth day of April of each year unless the person is a934
candidate for office. A person who is appointed to fill a vacancy 935
for an unexpired term in an elective office shall file the936
statement within fifteen days after the person qualifies for937
office. Other persons shall file an annual statement on or before938
the fifteenth day of April or, if appointed or employed after that939
date, within ninety days after appointment or employment. No940
person shall be required to file with the appropriate ethics941
commission more than one statement or pay more than one filing fee942
for any one calendar year.943

       The appropriate ethics commission, for good cause, may extend944
for a reasonable time the deadline for filing a statement under945
this section.946

       A statement filed under this section is subject to public947
inspection at locations designated by the appropriate ethics948
commission except as otherwise provided in this section.949

       (B) The Ohio ethics commission, the joint legislative ethics950
committee, and the board of commissioners on grievances and951
discipline of the supreme court, using the rule-making procedures952
of Chapter 119. of the Revised Code, may require any class of953
public officials or employees under its jurisdiction and not954
specifically excluded by this section whose positions involve a955
substantial and material exercise of administrative discretion in956
the formulation of public policy, expenditure of public funds,957
enforcement of laws and rules of the state or a county or city, or958
the execution of other public trusts, to file an annual statement959
on or before the fifteenth day of April under division (A) of this960
section. The appropriate ethics commission shall send the public961
officials or employees written notice of the requirement by the962
fifteenth day of February of each year the filing is required963
unless the public official or employee is appointed after that964
date, in which case the notice shall be sent within thirty days965
after appointment, and the filing shall be made not later than966
ninety days after appointment.967

       Except for disclosure statements filed by members of the968
board of trustees and the executive director of the tobacco use969
prevention and control foundation and members of the board of970
trustees and the executive director of the southern Ohio971
agricultural and community development foundation, disclosure972
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. Disclosure976
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 school985
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 in993
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 kept1001
confidential by the commission and shall not be made subject to1002
public inspection, except as is necessary for the enforcement of1003
Chapters 102. and 2921. of the Revised Code and except as1004
otherwise provided in this division.1005

       (C) No person shall knowingly fail to file, on or before the1006
applicable filing deadline established under this section, a1007
statement that is required by this section.1008

       (D) No person shall knowingly file a false statement that is1009
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 section1014
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 of1038
record, shall be required to pay the fee required under division1039
(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, the1047
appropriate ethics commission shall assess the person required to1048
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 Ohio1052
ethics commission shall deposit all fees it receives under1053
divisions (E) and (F) of this section into the general revenue1054
fund of the state.1055

       (2) The Ohio ethics commission shall deposit all receipts,1056
including, but not limited to, fees it receives under divisions1057
(E) and (F) of this section and all moneys it receives from1058
settlements under division (G) of section 102.06 of the Revised1059
Code, into the Ohio ethics commission fund, which is hereby1060
created in the state treasury. All moneys credited to the fund1061
shall be used solely for expenses related to the operation and1062
statutory functions of the commission.1063

       (H) Division (A) of this section does not apply to a person1064
elected or appointed to the office of precinct, ward, or district1065
committee member under Chapter 3517. of the Revised Code; a1066
presidential elector; a delegate to a national convention; village1067
or township officials and employees; any physician or psychiatrist1068
who is paid a salary or wage in accordance with schedule C of1069
section 124.15 or schedule E-2 of section 124.152 of the Revised1070
Code and whose primary duties do not require the exercise of1071
administrative discretion; or any member of a board, commission,1072
or bureau of any county or city who receives less than one1073
thousand dollars per year for serving in that position.1074

       Sec. 102.03.  (A)(1) No present or former public official or1075
employee shall, during public employment or service or for twelve1076
months thereafter, represent a client or act in a representative1077
capacity for any person on any matter in which the public official1078
or employee personally participated as a public official or1079
employee through decision, approval, disapproval, recommendation,1080
the rendering of advice, investigation, or other substantial1081
exercise of administrative discretion.1082

       (2) For twenty-four months after the conclusion of service,1083
no former commissioner or attorney examiner of the public1084
utilities commission shall represent a public utility, as defined1085
in section 4905.02 of the Revised Code, or act in a representative1086
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 of1094
administrative discretion under Chapter 343. or 3734. of the1095
Revised Code shall represent a person who is the owner or operator1096
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 facility1098
under that chapter, on any matter in which the public official or1099
employee personally participated as a public official or employee.1100

       (4) For a period of one year after the conclusion of1101
employment or service as a member or employee of the general1102
assembly, no former member or employee of the general assembly1103
shall represent, or act in a representative capacity for, any1104
person on any matter before the general assembly, any committee of1105
the general assembly, or the controlling board. Division (A)(4) of 1106
this section does not apply to or affect a person who separates1107
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 this1111
section, "matter" includes any case, proceeding, application,1112
determination, issue, or question, but does not include the1113
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 the1116
proposal, consideration, or enactment of statutes, resolutions, or1117
constitutional amendments. As used in division (A) of this1118
section, "represent" includes any formal or informal appearance1119
before, or any written or oral communication with, any public1120
agency on behalf of any person.1121

       (6) Nothing contained in division (A) of this section shall1122
prohibit, during such period, a former public official or employee1123
from being retained or employed to represent, assist, or act in a1124
representative capacity for the public agency by which the public1125
official or employee was employed or on which the public official1126
or employee served.1127

       (7) Division (A) of this section shall not be construed to1128
prohibit the performance of ministerial functions, including, but1129
not limited to, the filing or amendment of tax returns,1130
applications for permits and licenses, incorporation papers, and1131
other similar documents.1132

       (B) No present or former public official or employee shall1133
disclose or use, without appropriate authorization, any1134
information acquired by the public official or employee in the1135
course of the public official's or employee's official duties that1136
is confidential because of statutory provisions, or that has been1137
clearly designated to the public official or employee as1138
confidential when that confidential designation is warranted1139
because of the status of the proceedings or the circumstances1140
under which the information was received and preserving its1141
confidentiality is necessary to the proper conduct of government1142
business.1143

       (C) No public official or employee shall participate within1144
the scope of duties as a public official or employee, except1145
through ministerial functions as defined in division (A) of this1146
section, in any license or rate-making proceeding that directly1147
affects the license or rates of any person, partnership, trust,1148
business trust, corporation, or association in which the public1149
official or employee or immediate family owns or controls more1150
than five per cent. No public official or employee shall1151
participate within the scope of duties as a public official or1152
employee, except through ministerial functions as defined in1153
division (A) of this section, in any license or rate-making1154
proceeding that directly affects the license or rates of any1155
person to whom the public official or employee or immediate1156
family, or a partnership, trust, business trust, corporation, or1157
association of which the public official or employee or the public1158
official's or employee's immediate family owns or controls more1159
than five per cent, has sold goods or services totaling more than1160
one thousand dollars during the preceding year, unless the public1161
official or employee has filed a written statement acknowledging1162
that sale with the clerk or secretary of the public agency and the1163
statement is entered in any public record of the agency's1164
proceedings. This division shall not be construed to require the1165
disclosure of clients of attorneys or persons licensed under1166
section 4732.12 or 4732.15 of the Revised Code, or patients of1167
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 to1170
secure anything of value or the promise or offer of anything of1171
value that is of such a character as to manifest a substantial and1172
improper influence upon the public official or employee with1173
respect to that person's duties.1174

       (E) No public official or employee shall solicit or accept1175
anything of value that is of such a character as to manifest a1176
substantial and improper influence upon the public official or1177
employee with respect to that person's duties.1178

       (F) No person shall promise or give to a public official or1179
employee anything of value that is of such a character as to1180
manifest a substantial and improper influence upon the public1181
official or employee with respect to that person's duties.1182

       (G) In the absence of bribery or another offense under the1183
Revised Code or a purpose to defraud, contributions made to a1184
campaign committee, political party, legislative campaign fund,1185
political action committee, or political contributing entity on1186
behalf of an elected public officer or other public official or1187
employee who seeks elective office shall be considered to accrue1188
ordinarily to the public official or employee for the purposes of1189
divisions (D), (E), and (F) of this section.1190

       As used in this division, "contributions," "campaign1191
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 the1195
president or other chief administrative officer of or a member of1196
a board of trustees of a state institution of higher education as1197
defined in section 3345.011 of the Revised Code, who is required1198
to file a financial disclosure statement under section 102.02 of1199
the Revised Code shall solicit or accept, and no person shall give 1200
to that public official or employee, an honorarium. ThisExcept as 1201
provided in division (H)(2) of this section, this division and1202
divisions (D), (E), and (F) of this section do not prohibit a1203
public official or employee who is required to file a financial1204
disclosure statement under section 102.02 of the Revised Code from1205
accepting and do not prohibit a person from giving to that public1206
official or employee the payment of actual travel expenses,1207
including any expenses incurred in connection with the travel for1208
lodging, and meals, food, and beverages provided to the public1209
official or employee at a meeting at which the public official or1210
employee participates in a panel, seminar, or speaking engagement1211
or provided to the public official or employee at a meeting or1212
convention of a national organization to which any state agency,1213
including, but not limited to, any state legislative agency or1214
state institution of higher education as defined in section1215
3345.011 of the Revised Code, pays membership dues. ThisExcept as 1216
provided in division (H)(2) of this section, this division and 1217
divisions (D), (E), and (F) of this section do not prohibit a1218
public official or employee who is not required to file a1219
financial disclosure statement under section 102.02 of the Revised1220
Code from accepting and do not prohibit a person from promising or1221
giving to that public official or employee an honorarium or the1222
payment of travel, meal, and lodging expenses if the honorarium,1223
expenses, or both were paid in recognition of demonstrable1224
business, professional, or esthetic interests of the public1225
official or employee that exist apart from public office or1226
employment, including, but not limited to, such a demonstrable1227
interest in public speaking and were not paid by any person or1228
other entity, or by any representative or association of those1229
persons or entities, that is regulated by, doing business with, or1230
seeking to do business with the department, division, institution,1231
board, commission, authority, bureau, or other instrumentality of1232
the governmental entity with which the public official or employee1233
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, and1245
similar events related to official duties if the travel, meals,1246
and lodging, expenses, or reimbursement is not of such a character1247
as to manifest a substantial and improper influence upon the1248
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 the1251
Revised Code, may adopt rules setting standards and conditions for1252
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 any1255
applicable rules adopted under it, or any applicable, similar1256
rules adopted by the supreme court governing judicial officers and1257
employees, does not violate division (D), (E), or (F) of this1258
section. This division does not preclude any person from seeking1259
an advisory opinion from the appropriate ethics commission under1260
section 102.08 of the Revised Code.1261

       (J) For purposes of divisions (D), (E), and (F) of this1262
section, the membership of a public official or employee in an1263
organization shall not be considered, in and of itself, to be of1264
such a character as to manifest a substantial and improper1265
influence on the public official or employee with respect to that1266
person's duties. As used in this division, "organization" means a1267
church or a religious, benevolent, fraternal, or professional1268
organization that is tax exempt under subsection 501(a) and1269
described in subsection 501(c)(3), (4), (8), (10), or (19) of the1270
"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 prosecuting1283
attorney to appoint assistants and employees in accordance with1284
division (B) of section 309.06 and section 2921.421 of the Revised1285
Code, for a chief legal officer of a municipal corporation or an1286
official designated as prosecutor in a municipal corporation to1287
appoint assistants and employees in accordance with sections1288
733.621 and 2921.421 of the Revised Code, for a township law1289
director appointed under section 504.15 of the Revised Code to1290
appoint assistants and employees in accordance with sections1291
504.151 and 2921.421 of the Revised Code, or for a coroner to1292
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 same1295
meaning as in section 733.621 of the Revised Code.1296

       Sec. 102.06.  (A) The appropriate ethics commission shall1297
receive and may initiate complaints against persons subject to1298
Chapter 102. of the Revised Code concerning conduct alleged to be1299
in violation of this chapter or section 2921.42 or 2921.43 of the1300
Revised Code. All complaints except those by the commission shall1301
be by affidavit made on personal knowledge, subject to the1302
penalties of perjury. Complaints by the commission shall be by1303
affidavit, based upon reasonable cause to believe that a violation1304
has occurred.1305

       (B) The commission shall investigate complaints, may1306
investigate charges presented to it, and may request further1307
information, including the specific amount of income from a1308
source, from any person filing with the commission a statement1309
required by section 102.02 of the Revised Code, if the information1310
sought is directly relevant to a complaint or charges received by1311
the commission pursuant to this section. This information is1312
confidential, except that the commission, at its discretion, may1313
share information gathered in the course of any investigation1314
with, or disclose the information to, the inspector general, any1315
appropriate prosecuting authority, any law enforcement agency, or1316
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 requested1324
shall furnish the information to the commission, unless within1325
fifteen days from the date of the request the person files an1326
action for declaratory judgment challenging the legitimacy of the1327
request in the court of common pleas of the county of the person's1328
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 action1332
shall be kept confidential except as otherwise provided by this1333
section. Before the commission proceeds to take any formal action1334
against a person who is the subject of an investigation based on1335
charges presented to the commission, a complaint shall be filed1336
against the person. If the commission finds that a complaint is1337
not frivolous, and there is reasonable cause to believe that the1338
facts alleged in a complaint constitute a violation of section1339
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised1340
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 person1344
requests a report. Upon the request of the accused person, the1345
commission shall make a public report of its finding. The person1346
against whom the complaint is directed shall be given reasonable1347
notice by certified mail of the date, time, and place of the1348
hearing and a statement of the charges and the law directly1349
involved and shall be given the opportunity to be represented by1350
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 and1353
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 commission1358
finds by a preponderance of the evidence that the facts alleged in1359
the complaint are true and constitute a violation of section1360
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised1361
Code, it shall report its findings to the appropriate prosecuting1362
authority for proceedings in prosecution of the violation and to1363
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 any1373
official action on those findings within ninety days after1374
receiving the commission's report of them, then the commission may1375
publicly comment that no official action has been taken on its1376
findings, except that the commission shall make no comment in1377
violation of the Rules of Criminal Procedure or about any1378
indictment that has been sealed pursuant to any law or those1379
rules. The commission shall make no comment regarding the merits1380
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 no1383
true bill of indictment.1384

       (2) If the appropriate ethics commission does not find by a1385
preponderance of the evidence that the facts alleged in the1386
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 or1388
if the commission has not scheduled a hearing within ninety days1389
after the complaint is filed or has not finally disposed of the1390
complaint within six months after it has been heard, it shall1391
dismiss the complaint and notify the accused person in writing of1392
the dismissal of the complaint. The commission shall not make a1393
report of its finding unless the accused person requests a report.1394
Upon the request of the accused person, the commission shall make1395
a public report of the finding, but in this case all evidence and1396
the record of the hearing shall remain confidential unless the1397
accused person also requests that the evidence and record be made1398
public. Upon request by the accused person, the commission shall1399
make the evidence and the record available for public inspection.1400

       (D) The commission, or a member of the commission, may1401
administer oaths, and the commission may issue subpoenas to any1402
person in the state compelling the attendance of witnesses and the1403
production of relevant papers, books, accounts, and records. The1404
commission shall issue subpoenas to compel the attendance of1405
witnesses and the production of documents upon the request of an1406
accused person. Section 101.42 of the Revised Code shall govern1407
the issuance of these subpoenas insofar as applicable. Upon the1408
refusal of any person to obey a subpoena or to be sworn or to1409
answer as a witness, the commission may apply to the court of1410
common pleas of Franklin county under section 2705.03 of the1411
Revised Code. The court shall hold proceedings in accordance with1412
Chapter 2705. of the Revised Code. The commission or the accused1413
person may take the depositions of witnesses residing within or1414
without the state in the same manner as prescribed by law for the1415
taking of depositions in civil actions in the court of common1416
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 of1420
representatives of the general assembly. The report shall indicate 1421
the total number of complaints received, initiated, and1422
investigated by the commission, the total number of complaints for1423
which formal hearings were held, and the total number of1424
complaints for which formal prosecution was recommended or1425
requested by the commission. The report also shall indicate the1426
nature of the inappropriate conduct alleged in each complaint and1427
the governmental entity with which any employee or official that1428
is the subject of a complaint was employed at the time of the1429
alleged inappropriate conduct.1430

       (F) All papers, records, affidavits, and documents upon any1431
complaint, inquiry, or investigation relating to the proceedings1432
of the appropriate commission shall be sealed and are private and1433
confidential, except as otherwise provided in this section and1434
section 102.07 of the Revised Code.1435

       (G)(1) When a complaint or charge is before it, the Ohio1436
ethics commission or the appropriate prosecuting authority, in1437
consultation with the person filing the complaint or charge, the1438
accused, and any other person the commission or prosecuting1439
authority considers necessary, may compromise or settle the1440
complaint or charge with the agreement of the accused. The1441
compromise or settlement may include mediation, restitution,1442
rescission of affected contracts, forfeiture of any benefits1443
resulting from a violation or potential violation of law,1444
resignation of a public official or employee, or any other relief1445
that is agreed upon between the commission or prosecuting1446
authority and the accused.1447

       (2) Any settlement agreement entered into under division1448
(G)(1) of this section shall be in writing and be accompanied by a1449
statement of the findings of the commission or prosecuting1450
authority and the reasons for entering into the agreement. The1451
commission or prosecuting authority shall retain the agreement and1452
statement in the commission's or prosecuting attorney's1453
authority's office and, in the commission's or prosecuting1454
authority's discretion, may make the agreement, the statement, and1455
any supporting information public, unless the agreement provides1456
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 and1460
reinstitute any investigation, hearing, or prosecution of the1461
accused. No information obtained from the accused in reaching the1462
settlement that is not otherwise discoverable from the accused1463
shall be used in any proceeding before the commission or by the1464
appropriate prosecuting authority in prosecuting the violation.1465
Notwithstanding any other section of the Revised Code, if a1466
settlement agreement is breached, any statute of limitations for a1467
violation of this chapter or section 2921.42 or 2921.43 of the1468
Revised Code is tolled from the date the complaint or charge is1469
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 of1519
the public employees retirement system and the making effective of1520
Chapter 145. of the Revised Code, are hereby vested in a board to1521
be known as the "public employees retirement board," which shall1522
consist of ninethe following members as follows:1523

       (A) The attorney general;One member, known as the treasurer 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) The auditor of state;1542

       (C) The director of administrative services;1543

       (D)(C) Five members, known as employee members, one of whom1544
shall be a state employee member of the system, who shall be1545
elected by ballot by the state employee members of the system from1546
among their number; another of whom shall be a county employee1547
member of the system, who shall be elected by ballot by the county1548
employee members of the system from among their number; another of1549
whom shall be a municipal employee member of the system, who shall1550
be elected by ballot by the municipal employee members of the1551
system from among their number; another of whom shall be a1552
university or college employee member of the system, who shall be1553
elected by ballot by the university and college employee members1554
of the system from among their number; and another of whom shall1555
be a park district, conservancy district, sanitary district,1556
health district, public library, township, metropolitan housing1557
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, township, public library, union cemetery, joint 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

       (E) One member(D) Two members, known as the retirant member1568
members, who shall be a former membermembers of the public 1569
employees retirement system who is a resident ofreside in this 1570
state and a recipient ofreceive age and service retirement, a 1571
disability benefit, or benefits paid under a PERS defined 1572
contribution plan. The retirant membermembers shall be elected by1573
ballot by former members of the system who are receiving age and1574
service retirement, a disability benefit, or benefits paid under a1575
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 of1620
the public employees retirement board shall be for four years each1621
beginning on the first day of January following election. The1622
election of the county employee member of the board and the1623
employee member of the board representing public library, health1624
district, park district, conservancy district, sanitary district,1625
township, metropolitan housing authority, union cemetery, joint1626
hospital, and institutional commissary employees shall be held on1627
the first Monday in October, 1945, and on the first Monday in1628
October in each fourth year thereafter. The election of the state1629
employee member of the board and the municipal employee member of1630
the board shall be held on the first Monday in October, 1946, and1631
on the first Monday in October in each fourth year thereafter. The1632
election of the initial university-college employee member of the1633
board shall be held on the first Monday in October, 1978, and1634
elections for subsequent university-college employee members of1635
the board shall be held on the first Monday in October in each1636
fourth year thereafter.1637

       (B) The term of office of the retirant membermembers of the1638
public employees retirement board shall be for four years1639
beginning on the first day of January following the election. The 1640
election of the initial retirant member offor that position on1641
the board shall be held on the first Monday in October, 1978, and 1642
subsequent elections for subsequentthis retirant members of the 1643
boardposition shall be held on the first Monday in October in 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 public1650
employees retirement board shall be held under the direction of1651
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 and further provided that there shall be, 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 membermembers of the 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 division1675
(E)(D) of section 145.04 of the Revised Code is eligible for 1676
election as thea retirant member of the board to represent 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 signed1680
by any combination of at least two hundred fifty eligible, former 1681
members of the system who are recipientsand certified in 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, a1685
disability benefit, or benefits paid under a PERS defined1686
contribution plan, or any combination of such recipients that1687
totals two hundred fifty. The petition shall contain the1688
signatures of at least ten such recipients from each of at least1689
five counties wherein recipients of benefits from the system1690
reside.1691

       The name of any person nominated in this manner shall be1692
placed upon the ballot by the board as a regular candidate. Names1693
of other eligible candidates may, at any election for thea1694
retirant member of the board, be substituted for the regular1695
candidates by writing the names of such persons upon the ballot.1696
The candidate who receives the highest number of votes for any1697
term as thea retirant member of the board shall be elected to1698
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

       Sec. 145.051.        Sec. 145.052.  Notwithstanding sections 145.04 and 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 145.06145.051 of the Revised Code, for a position1712
on the board as an employee member or retirant member if only one 1713
candidate has been nominated for the position by petition in1714
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 the1717
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 any2092
employee member of the public employees retirement board, the2093
remaining members of the board shall elect ana successor employee 2094
member from the employee group lacking representation because of 2095
the vacancy for the unexpired term. On certification of the 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 the2101
meetings of the board for three months or longer, without valid2102
excuse, shall be considered as having resigned, and the board2103
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 thea2106
retirant member of the board, the remaining members of the board2107
shall elect a successor retirant member who shall hold office for2108
the remainder of the predecessor retirant member's term. The2109
successor retirant member shall be a former member of the public2110
employees retirement system who is eligible for election under 2111
section 145.04 of the Revised Code as thea retirant member of the 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 the2118
meetings of the board for three months or longer, without valid2119
excuse, the retirant member shall be considered as having2120
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 thea retirant member2123
would no longer qualify for membership on the board as the2124
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) If a person elected to serve on the board is unable to2128
assume office at the January meeting of the board following the 2129
person's election, a special election shall be held in accordance2130
with the provisions of section 145.05 of the Revised Code within2131
three months of the January meeting and the newly elected person2132
shall assume office at the meeting of the board immediately2133
following the special electionElections under this section to 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 shall2137
elect from its membership a chairperson, and shall appoint an2138
executive director who shall serve as secretary to the board, an2139
actuary, and other employees as necessary for the transaction of2140
the business of the public employees retirement system. The2141
compensation of all persons so appointed shall be fixed by the2142
board. Every2143

       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 board2150
member of the public employees retirement system shall itemize all 2151
purchases and expenditures.2152

       The board shall perform other functions as required for the2153
proper execution of this chapter, and may adopt rules in 2154
accordance with section 111.15 of the Revised Code for the proper2155
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 such2159
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 on2163
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 be2170
transacted, all of its funds invested, all warrants for money2171
drawn and payments made, and all of its cash and securities and2172
other property shall be held in the name of the board, or in the2173
name of its nominee, provided that nominees are authorized by2174
retirement board resolution for the purpose of facilitating the2175
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 employees2290
retirement board shall be the trustees of the funds created by2291
section 145.23 of the Revised Code. The board shall have full2292
power to invest the funds. The board and other fiduciaries shall2293
discharge their duties with respect to the funds solely in the2294
interest of the participants and beneficiaries; for the exclusive2295
purpose of providing benefits to participants and their2296
beneficiaries and defraying reasonable expenses of administering2297
the public employees retirement system; with care, skill,2298
prudence, and diligence under the circumstances then prevailing2299
that a prudent person acting in a like capacity and familiar with2300
these matters would use in the conduct of an enterprise of a like2301
character and with like aims; and by diversifying the investments2302
of the system so as to minimize the risk of large losses, unless2303
under the circumstances it is clearly prudent not to do so.2304

       To facilitate investment of the funds, the board may2305
establish a partnership, trust, limited liability company,2306
corporation, including a corporation exempt from taxation under2307
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as2308
amended, or any other legal entity authorized to transact business2309
in this state.2310

       (B) In exercising its fiduciary responsibility with respect2311
to the investment of the funds, it shall be the intent of the2312
board to give consideration to investments that enhance the2313
general welfare of the state and its citizens where the2314
investments offer quality, return, and safety comparable to other2315
investments currently available to the board. In fulfilling this2316
intent, equal consideration shall also be given to investments2317
otherwise qualifying under this section that involve minority2318
owned and controlled firms and firms owned and controlled by2319
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 investment2322
program that include asset allocation targets and ranges, risk2323
factors, asset class benchmarks, time horizons, total return2324
objectives, and performance evaluation guidelines. In adopting2325
policies and criteria for the selection of agents with whom the2326
board may contract for the administration of the funds, the board2327
shall comply with sections 145.114 and 145.116 of the Revised Code 2328
and shall also give equal consideration to minority owned and2329
controlled firms, firms owned and controlled by women, and2330
ventures involving minority owned and controlled firms and firms2331
owned and controlled by women that otherwise meet the policies and2332
criteria established by the board. Amendments and additions to the2333
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 copies2336
available to interested parties.2337

       When reporting on the performance of investments, the board2338
shall comply with the performance presentation standards2339
established by the association for investment management and2340
research.2341

       (C) All investments shall be purchased at current market2342
prices and the evidences of title of the investments shall be2343
placed in the hands of the treasurer of state, who is hereby2344
designated as custodian thereof, or in the hands of the treasurer2345
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 by2354
the retirement board on receipt of written or electronic2355
instructions from the board or the board's designated agent2356
authorizing the purchase and pending receipt of the evidence of2357
title of the investment by the treasurer of state or the treasurer2358
of state's authorized agent. The board may sell investments held2359
by the board, and the treasurer of state or the treasurer of2360
state's authorized agent shall accept payment from the purchaser2361
and deliver evidence of title of the investment to the purchaser2362
on receipt of written or electronic instructions from the board or2363
the board's designated agent authorizing the sale, and pending2364
receipt of the moneys for the investments. The amount received2365
shall be placed in the custodial funds. The board and the2366
treasurer of state may enter into agreements to establish2367
procedures for the purchase and sale of investments under this2368
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 employees2371
retirement board.2372

       (E) Any statement of financial position distributed by the2373
board shall include the fair value, as of the statement date, of2374
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 this2506
section, an individual who becomes employed in a position subject2507
to this chapter on or after the date on which the public employees2508
retirement board first establishes a PERS defined contribution2509
plan shall make an election under this section. Not later than one2510
hundred eighty days after the date on which employment begins, the2511
individual shall elect to participate either in the PERS defined2512
benefit plan or a PERS defined contribution plan. If a form2513
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 writing2518
on a form provided by the system and filed with the system.2519

       (C) An election under this section shall take effect on the2520
date employment began and, except as provided in section 145.8142521
of the Revised Code or rules governing the PERS defined benefit2522
plan, is irrevocable on receipt by the system.2523

       (D) An individual is ineligible to make an election under2524
this section if one of the following applies:2525

       (1) At the time employment begins, the individual is a PERS2526
retirant or other system retirant, as those terms are defined in2527
section 145.38 of the Revised Code, or is retired under section2528
145.383 of the Revised Code.2529

       (2) The individual is participating or has elected to2530
participate in an alternative retirement plan under section2531
3305.05 or 3305.051 of the Revised Code and the employment is in a 2532
position that is subject to division (E) of that(C)(4) of section 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 day2535
of the month prior to the date employment begins, has five or more2536
years of total service credit.2537

       (4) The individual is employed in a position covered under2538
this chapter to which section 145.193 of the Revised Code applies.2539

       (5) The individual is a PERS law enforcement officer or2540
Hamilton county municipal court bailiff.2541

       Sec. 145.193. Except as provided in division (E)(C)(4) of 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, "personal2552
history record" means information maintained by the public2553
employees retirement board on an individual who is a member,2554
former member, contributor, former contributor, retirant, or2555
beneficiary that includes the address, telephone number, social2556
security number, record of contributions, correspondence with the2557
public employees retirement system, or other information the board2558
determines to be confidential.2559

       (2) The records of the board shall be open to public2560
inspection, except that the following shall be excluded, except2561
with the written authorization of the individual concerned:2562

       (a) The individual's statement of previous service and other2563
information as provided for in section 145.16 of the Revised Code;2564

       (b) The amount of a monthly allowance or benefit paid to the2565
individual;2566

       (c) The individual's personal history record.2567

       (B) All medical reports and recommendations required by this2568
chapter are privileged, except that copies of such medical reports2569
or recommendations shall be made available to the personal2570
physician, attorney, or authorized agent of the individual2571
concerned upon written release from the individual or the2572
individual's agent, or when necessary for the proper2573
administration of the fund, to the board assigned physician.2574

       (C) Any person who is a member or contributor of the system2575
shall be furnished with a statement of the amount to the credit of2576
the individual's account upon written request. The board is not2577
required to answer more than one such request of a person in any2578
one year. The board may issue annual statements of accounts to2579
members and contributors.2580

       (D) Notwithstanding the exceptions to public inspection in2581
division (A)(2) of this section, the board may furnish the2582
following information:2583

       (1) If a member, former member, contributor, former2584
contributor, or retirant is subject to an order issued under2585
section 2907.15 of the Revised Code or is convicted of or pleads2586
guilty to a violation of section 2921.41 of the Revised Code, on2587
written request of a prosecutor as defined in section 2935.01 of2588
the Revised Code, the board shall furnish to the prosecutor the2589
information requested from the individual's personal history2590
record.2591

       (2) Pursuant to a court or administrative order issued2592
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised2593
Code, the board shall furnish to a court or child support2594
enforcement agency the information required under that section.2595

       (3) At the written request of any person, the board shall2596
provide to the person a list of the names and addresses of2597
members, former members, contributors, former contributors,2598
retirants, or beneficiaries. The costs of compiling, copying, and2599
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 security2602
numbers of recipients of public assistance pursuant to section2603
5101.181 of the Revised Code, the board shall inform the auditor2604
of state of the name, current or most recent employer address, and2605
social security number of each member whose name and social2606
security number are the same as that of a person whose name or2607
social security number was submitted by the director. The board2608
and its employees shall, except for purposes of furnishing the2609
auditor of state with information required by this section,2610
preserve the confidentiality of recipients of public assistance in2611
compliance with division (A) of section 5101.181 of the Revised2612
Code.2613

       (5) The system shall comply with orders issued under section2614
3105.87 of the Revised Code.2615

       On the written request of an alternate payee, as defined in2616
section 3105.80 of the Revised Code, the system shall furnish to2617
the alternate payee information on the amount and status of any2618
amounts payable to the alternate payee under an order issued under2619
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 the2628
system's records that is signed by the executive director or an2629
officer of the system and to which the system's official seal is2630
affixed, or copies of the system's records to which the signature2631
and seal are attached, shall be received as true copies of the2632
system's records in any court or before any officer of this state.2633

       Sec. 145.40.  (A)(1) Subject to the provisions of section2634
145.57 of the Revised Code and except as provided in section2635
145.402 of the Revised Code and division (B) of this section, if a2636
member elects to become exempt from contribution to the public2637
employees retirement system pursuant to section 145.03 of the2638
Revised Code or ceases to be a public employee for any cause other2639
than death, retirement, receipt of a disability benefit, or2640
current employment in a position in which the member has elected2641
to participate in an alternative retirement plan under section2642
3305.05 or 3305.051 of the Revised Code, upon application the 2643
public employees retirement board shall pay the member the2644
member's accumulated contributions, plus any applicable amount2645
calculated under section 145.401 of the Revised Code, provided2646
that both the following apply:2647

       (a) Three months have elapsed since the member's service2648
subject to this chapter, other than service exempted from2649
contribution pursuant to section 145.03 of the Revised Code, was2650
terminated;2651

       (b) The member has not returned to service subject to this2652
chapter, other than service exempted from contribution pursuant to2653
section 145.03 of the Revised Code, during that three-month2654
period.2655

       The payment of such accumulated contributions shall cancel2656
the total service credit of such member in the public employees2657
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's2664
accumulated contributions. Consent shall be valid only if it is2665
signed and witnessed by a notary public.2666

       The board may waive the requirement of consent if the spouse2667
is incapacitated or cannot be located, or for any other reason2668
specified by the board. Consent or waiver is effective only with2669
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 a2671
position in which the member has made an election under section2672
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 public2675
employees retirement system shall do the following:2676

       (1) On receipt of a certified copy of a form evidencing an2677
election under section 3305.05 or 3305.051 of the Revised Code, 2678
pay to the appropriate provider, in accordance with section2679
3305.0513305.052 of the Revised Code, the amount described in2680
section 3305.0513305.052 of the Revised Code;2681

       (2) If a member has accumulated contributions, in addition to2682
those subject to division (B)(1) of this section, standing to the2683
credit of the member's individual account and is not otherwise2684
employed in a position in which the member is considered a public2685
employee for the purposes of that position, pay, to the provider2686
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 service2691
credit in the public employees retirement system. A member whose2692
accumulated contributions are paid to a provider pursuant to2693
division (B) of this section is forever barred from claiming or2694
purchasing service credit under the public employees retirement2695
system for the period of employment attributable to those2696
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. ThereAs used in this chapter, "state 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
consisting of fourteen members to. Members of the council shall be2713
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 be2728
affected. Terms of office of members appointed by the governor2729
shall be for three years, commencing on the first day of July and2730
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 member2733
appointed by the governor to fill a vacancy occurring prior to the 2734
expiration of the term for which the member's predecessor was2735
appointed shall hold office for the remainder of such term. Any2736
Each member appointed by the governor shall continue in office 2737
subsequent to the expiration date of the member's term until the 2738
member's successor takes office, or until a period of sixty days 2739
has elapsed, whichever occurs firstuntil the member's successor 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 executive2743
director of the public employees retirement system, the executive2744
director of the state teachers retirement system, the executive2745
director of the school employees retirement system, the executive2746
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 person2750
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 the2753
membership of the senate and the house of representatives shall2754
serve during their terms as members of the general assembly and2755
until their successors are appointed and qualified,2756
notwithstanding the adjournment of the general assembly of which2757
they are members or the expiration of their terms as members of2758
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 clerical2765
employees as are necessary, and employ or hire on a consulting2766
basis such actuarial, legal, investment, or other technical2767
services required for the performance of its duties;2768

       (C) Fix the compensation of the director and all other2769
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 and2774
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 laws2792
governing the administration and financing of the pension and2793
retirement funds under Chapters 145., 146., 742., 3307., 3309.,2794
and 5505. of the Revised Code and recommend to the general2795
assembly any changes it may find desirable with respect to the2796
allowances and benefits, sound financing of the cost of benefits,2797
the prudent investment of funds, and the improvement of the2798
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 their2804
probable costs, actuarial implications, and desirability as a2805
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, asset2811
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 report2815
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 sections2860
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 police2863
retirant.2864

       (2) "Firefighter" means a member of the fund who is or has2865
been an employee of a fire department and is not a firefighter2866
retirant.2867

       (3) "Firefighter retirant" means a member of the fund who is2868
receiving an age and service or disability benefit as a result of2869
service in a fire department or a surviving spouse of a deceased2870
member who is receiving a benefit as a result of the deceased2871
member's service in a fire department. "Firefighter retirant" does2872
not include a member of the fund who is participating in the2873
deferred retirement option plan established under section 742.432874
of the Revised Code.2875

       (4) "Police retirant" means a member of the fund who is2876
receiving an age and service or disability benefit as a result of2877
service in a police department or a surviving spouse of a deceased2878
member who is receiving a benefit as a result of the deceased2879
member's service in a police department. "Police retirant" does2880
not include a member of the fund who is participating in the2881
deferred retirement option plan established under section 742.432882
of the Revised Code.2883

       (B) The administration, control, and management of the Ohio2884
police and fire pension fund, created under section 742.02 of the2885
Revised Code, is vested in a board of trustees of the Ohio police2886
and fire pension fund, which shall consist of ninethe following2887
members as follows:2888

       (1) The attorney general;2889

       (2) The auditor of state;2890

       (3) The fiscal officer of a municipal corporation who shall2891
be appointed by the governor. This member's term shall be for2892
three years, commencing on the fourth day of June and ending on2893
the third day of June. The fiscal officer member shall hold office 2894
from the date of appointment until the end of the term for which 2895
appointed. Any fiscal officer member appointed to fill a vacancy 2896
occurring prior to the expiration of the term for which the fiscal 2897
officer member's predecessor was appointed shall hold office for 2898
the remainder of such term. Any fiscal officer member shall 2899
continue in office subsequent to the expiration date of the fiscal2900
officer member's term until such member's successor takes office, 2901
or until a period of sixty days has elapsed, whichever occurs 2902
first.2903

       (4)One member, known as the treasurer of state's investment 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 by2947
police officers. Two employee members shall be firefighters2948
elected by firefighters. Employee members of the board shall be2949
elected for terms of four years as provided by section 742.04 of2950
the Revised Code.2951

       (5)(4) One member known as the firefighter retirant member, 2952
who shall be a resident of this state elected by the firefighter2953
retirants. The firefighter retirant member shall be elected for a2954
term of four years as provided by section 742.04 of the Revised2955
Code.2956

       (6)(5) One member known as the police retirant member, who2957
shall be a resident of this state elected by the police retirants.2958
The police retirant member shall be elected for a term of four2959
years as provided by section 742.04 of the Revised Code.2960

       (C) No employee member of the board who retires while a2961
member of the board shall be eligible to become a retirant member2962
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 the2991
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

       The board shall determine the sufficiency of the nominating3015
petitions filed with it and the board's decision shall be final.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 propercertified nominating petitions have3019
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 the3023
expiration of the term of the employee member of the board whose3024
successor is to be elected. The board shall determine whether a3025
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 of3028
the expiration of the term of the employee member of the board3029
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 the3034
third Tuesday in May following the date that the ballots were3035
mailed to the members of the fund eligible to vote at such3036
election.3037

       The board shall cause the ballots to be counted and shall3038
declareOn certification of the election results in accordance 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 retirant3044
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 firefighter3049
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 later3055
than four p.m. on the first Monday in April preceding the date of3056
the expiration of the term of the retirant member of the board3057
whose successor is to be elected.3058

       The board shall determine the sufficiency of the nominating3059
petitions filed with it, and the board's decision shall be final.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 propercertified nominating petitions have3063
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 of3072
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 the3077
third Tuesday in May following the date that the ballots were3078
mailed to the persons eligible to vote in the election.3079

       The board shall cause the ballots to be counted and shall3080
declareOn certification of the election results in accordance 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 member3480
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

       AnyIf a vacancy occurringoccurs in the term of an employee 3485
or retirant member of the board shall be filled by, all the 3486
remaining employee members and the retirant members of the board 3487
for the unexpired term of suchshall elect a successor employee or 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

       Any vacancy occurring in the term of a retirant member of the 3494
board shall be filled by the employee members and the remaining3495
retirant member of the board for the unexpired term.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 a3500
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 employee or retirantelected or appointed member of the 3508
board or member of the board who is the fiscal officer of a 3509
municipal corporation who fails to attend three consecutive 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 and3515
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 given3533
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 the3536
Revised Code, the board shall submit to the Ohio retirement study3537
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 division3539
(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 the3653
Ohio police and fire pension fund shall be the trustees of the3654
funds created by section 742.59 of the Revised Code. The board3655
shall have full power to invest the funds. The board and other3656
fiduciaries shall discharge their duties with respect to the funds3657
solely in the interest of the participants and beneficiaries; for3658
the exclusive purpose of providing benefits to participants and3659
their beneficiaries and defraying reasonable expenses of3660
administering the Ohio police and fire pension fund; with care,3661
skill, prudence, and diligence under the circumstances then3662
prevailing that a prudent person acting in a like capacity and3663
familiar with these matters would use in the conduct of an3664
enterprise of a like character and with like aims; and by3665
diversifying the investments of the disability and pension fund so3666
as to minimize the risk of large losses, unless under the3667
circumstances it is clearly prudent not to do so.3668

       To facilitate investment of the funds, the board may3669
establish a partnership, trust, limited liability company,3670
corporation, including a corporation exempt from taxation under3671
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C.A. 1, as3672
amended, or any other legal entity authorized to transact business3673
in this state.3674

       (B) In exercising its fiduciary responsibility with respect3675
to the investment of the funds, it shall be the intent of the3676
board to give consideration to investments that enhance the3677
general welfare of the state and its citizens where the3678
investments offer quality, return, and safety comparable to other3679
investments currently available to the board. In fulfilling this3680
intent, equal consideration shall be given to investments3681
otherwise qualifying under this section that involve minority3682
owned and controlled firms and firms owned and controlled by3683
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 investment3686
program that include asset allocation targets and ranges, risk3687
factors, asset class benchmarks, time horizons, total return3688
objectives, and performance evaluation guidelines. In adopting3689
policies and criteria for the selection of agents with whom the3690
board may contract for the administration of the funds, the board3691
shall comply with sections 742.114 and 742.116 of the Revised Code 3692
and shall also give equal consideration to minority owned and3693
controlled firms, firms owned and controlled by women, and joint3694
ventures involving minority owned and controlled firms and firms3695
owned and controlled by women that otherwise meet the policies and3696
criteria established by the board. Amendments and additions to the3697
policies and criteria shall be adopted in regular meeting. The3698
board shall publish its policies, objectives, and criteria under3699
this provision no less often than annually and shall make copies3700
available to interested parties.3701

       When reporting on the performance of investments, the board3702
shall comply with the performance presentation standards3703
established by the association for investment management and3704
research.3705

       (C) All bonds, notes, certificates, stocks, or other3706
evidences of investments purchased by the board shall be delivered3707
to the treasurer of state, who is hereby designated as custodian3708
thereof, or to the treasurer of state's authorized agent, and the3709
treasurer of state or the agent shall collect the principal,3710
interest, dividends, and distributions that become due and payable3711
and place them when so collected into the custodial funds. 3712
Evidences of title of the investments may be deposited by the3713
treasurer of state for safekeeping with an authorized agent,3714
selected by the treasurer of state, who is a qualified trustee3715
under section 135.18 of the Revised Code. The treasurer of state3716
shall pay for the investments purchased by the board on receipt of3717
written or electronic instructions from the board or the board's3718
designated agent authorizing the purchase and pending receipt of3719
the evidence of title of the investment by the treasurer of state3720
or the treasurer of state's authorized agent. The board may sell3721
investments held by the board, and the treasurer of state or the3722
treasurer of state's authorized agent shall accept payment from3723
the purchaser and deliver evidence of title of the investment to3724
the purchaser on receipt of written or electronic instructions3725
from the board or the board's designated agent authorizing the3726
sale, and pending receipt of the moneys for the investments. The3727
amount received shall be placed into the custodial funds. The3728
board and the treasurer of state may enter into agreements to3729
establish procedures for the purchase and sale of investments3730
under this division and the custody of the investments.3731

       (D) All of the board's business shall be transacted, all its3732
funds shall be invested, all warrants for money drawn and payments3733
shall be made, and all of its cash, securities, and other property3734
shall be held, in the name of the board or its nominee, provided3735
that nominees are authorized by board resolution for the purpose3736
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 the3741
board shall include the fair value, as of the statement date, of3742
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 in3873
section 742.26 of the Revised Code.3874

       (2) "Personal history record" includes a member's, former3875
member's, or other system retirant's name, address, telephone3876
number, social security number, record of contributions,3877
correspondence with the Ohio police and fire pension fund, status3878
of any application for benefits, and any other information deemed3879
confidential by the trustees of the fund.3880

       (B) The treasurer of state shall furnish annually to the3881
board of trustees of the fund a sworn statement of the amount of3882
the funds in the treasurer of state's custody belonging to the3883
Ohio police and fire pension fund. The records of the fund shall3884
be open for public inspection except for the following, which3885
shall be excluded, except with the written authorization of the3886
individual concerned:3887

       (1) The individual's personal history record;3888

       (2) Any information identifying, by name and address, the3889
amount of a monthly allowance or benefit paid to the individual.3890

       (C) All medical reports and recommendations required are3891
privileged, except that copies of such medical reports or3892
recommendations shall be made available to the personal physician,3893
attorney, or authorized agent of the individual concerned upon3894
written release received from the individual or the individual's3895
agent or, when necessary for the proper administration of the3896
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's3900
written request. The fund need not answer more than one such3901
request of a person in any one year.3902

       (E) Notwithstanding the exceptions to public inspection in3903
division (B) of this section, the fund may furnish the following3904
information:3905

       (1) If a member, former member, or other system retirant is3906
subject to an order issued under section 2907.15 of the Revised3907
Code or is convicted of or pleads guilty to a violation of section3908
2921.41 of the Revised Code, on written request of a prosecutor as3909
defined in section 2935.01 of the Revised Code, the fund shall3910
furnish to the prosecutor the information requested from the3911
individual's personal history record.3912

       (2) Pursuant to a court order issued pursuant to Chapter3913
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall3914
furnish to a court or child support enforcement agency the3915
information required under that section.3916

       (3) At the request of any organization or association of3917
members of the fund, the fund shall provide a list of the names3918
and addresses of members of the fund and other system retirants.3919
The fund shall comply with the request of such organization or3920
association at least once a year and may impose a reasonable3921
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 security3924
numbers of recipients of public assistance pursuant to section3925
5101.181 of the Revised Code, the fund shall inform the auditor of3926
state of the name, current or most recent employer address, and3927
social security number of each member or other system retirant3928
whose name and social security number are the same as that of a3929
person whose name or social security number was submitted by the3930
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 public3933
assistance in compliance with division (A) of section 5101.181 of3934
the Revised Code.3935

       (5) The fund shall comply with orders issued under section3936
3105.87 of the Revised Code.3937

       On the written request of an alternate payee, as defined in3938
section 3105.80 of the Revised Code, the fund shall furnish to the3939
alternate payee information on the amount and status of any3940
amounts payable to the alternate payee under an order issued under3941
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 the3951
fund's records that is signed by the secretary of the board of3952
trustees of the Ohio police and fire pension fund and to which the3953
board's official seal is affixed, or copies of the fund's records3954
to which the signature and seal are attached, shall be received as3955
true copies of the fund's records in any court or before any3956
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 every3996
disposition, or attempt to dispose, of a security or of an3997
interest in a security. "Sale" also includes a contract to sell,3998
an exchange, an attempt to sell, an option of sale, a solicitation3999
of a sale, a solicitation of an offer to buy, a subscription, or4000
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 in4004
connection with the sale of securities in this state exclusively4005
to the purchasers specified in division (D) of section 1707.03 of4006
the Revised Code is not a sale when the advertisements, circulars,4007
and pamphlets describing and offering those securities bear a4008
readily legible legend in substance as follows: "This offer is4009
made on behalf of dealers licensed under sections 1707.01 to4010
1707.45 of the Revised Code, and is confined in this state4011
exclusively to institutional investors and licensed dealers."4012

       (4) The offering of securities by any person in conjunction4013
with a licensed dealer by use of advertisement, circular, or4014
pamphlet is not a sale if that person does not otherwise attempt4015
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 or4022
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 the4027
trust was created or the trustee designated by law or judicial4028
authority or by a will, and a corporation or limited liability4029
company organized under the laws of any state, any foreign4030
government, or any political subdivision of a state or foreign4031
government.4032

       (E)(1) "Dealer," except as otherwise provided in this4033
chapter, means every person, other than a salesperson, who engages4034
or professes to engage, in this state, for either all or part of4035
the person's time, directly or indirectly, either in the business4036
of the sale of securities for the person's own account, or in the4037
business of the purchase or sale of securities for the account of4038
others in the reasonable expectation of receiving a commission,4039
fee, or other remuneration as a result of engaging in the purchase4040
and sale of securities. "Dealer" does not mean any of the4041
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 in4053
the purchase or sale of securities that are issued and outstanding4054
before such purchase and sale, if a majority or more of the equity4055
interest of an issuer is sold in that transaction, and if, in the4056
case of a corporation, the securities sold in that transaction4057
represent a majority or more of the voting power of the4058
corporation in the election of directors;4059

       (d) Any person that brings an issuer together with a4060
potential investor and whose compensation is not directly or4061
indirectly based on the sale of any securities by the issuer to4062
the investor;4063

       (e) Any bank;4064

       (f) Any person that the division of securities by rule4065
exempts from the definition of "dealer" under division (E)(1) of4066
this section.4067

       (2) "Licensed dealer" means a dealer licensed under this4068
chapter.4069

       (F)(1) "Salesman" or "salesperson" means every natural4070
person, other than a dealer, who is employed, authorized, or4071
appointed by a dealer to sell securities within this state.4072

       (2) The general partners of a partnership, and the executive4073
officers of a corporation or unincorporated association, licensed4074
as a dealer are not salespersons within the meaning of this4075
definition, nor are such clerical or other employees of an issuer4076
or dealer as are employed for work to which the sale of securities4077
is secondary and incidental; but the division of securities may4078
require a license from any such partner, executive officer, or4079
employee if it determines that protection of the public4080
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 to4084
issue, or issues any security.4085

       (H) "Director" means each director or trustee of a4086
corporation, each trustee of a trust, each general partner of a4087
partnership, except a partnership association, each manager of a4088
partnership association, and any person vested with managerial or4089
directory power over an issuer not having a board of directors or4090
trustees.4091

       (I) "Incorporator" means any incorporator of a corporation4092
and any organizer of, or any person participating, other than in a4093
representative or professional capacity, in the organization of an4094
unincorporated issuer.4095

       (J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent4096
practices," or "fraudulent transactions" means anything recognized4097
on or after July 22, 1929, as such in courts of law or equity; any4098
device, scheme, or artifice to defraud or to obtain money or4099
property by means of any false pretense, representation, or4100
promise; any fictitious or pretended purchase or sale of4101
securities; and any act, practice, transaction, or course of4102
business relating to the purchase or sale of securities that is4103
fraudulent or that has operated or would operate as a fraud upon4104
the seller or purchaser.4105

       (K) Except as otherwise specifically provided, whenever any4106
classification or computation is based upon "par value," as4107
applied to securities without par value, the average of the4108
aggregate consideration received or to be received by the issuer4109
for each class of those securities shall be used as the basis for4110
that classification or computation.4111

       (L)(1) "Intangible property" means patents, copyrights,4112
secret processes, formulas, services, good will, promotion and4113
organization fees and expenses, trademarks, trade brands, trade4114
names, licenses, franchises, any other assets treated as4115
intangible according to generally accepted accounting principles,4116
and securities, accounts receivable, or contract rights having no4117
readily determinable value.4118

       (2) "Tangible property" means all property other than4119
intangible property and includes securities, accounts receivable,4120
and contract rights, when the securities, accounts receivable, or4121
contract rights have a readily determinable value.4122

       (M) "Public utilities" means those utilities defined in4123
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised4124
Code; in the case of a foreign corporation, it means those4125
utilities defined as public utilities by the laws of its domicile;4126
and in the case of any other foreign issuer, it means those4127
utilities defined as public utilities by the laws of the situs of4128
its principal place of business. The term always includes4129
railroads whether or not they are so defined as public utilities.4130

       (N) "State" means any state of the United States, any4131
territory or possession of the United States, the District of4132
Columbia, and any province of Canada.4133

       (O) "Bank" means any bank, trust company, savings and loan4134
association, savings bank, or credit union that is incorporated or4135
organized under the laws of the United States, any state of the4136
United States, Canada, or any province of Canada and that is4137
subject to regulation or supervision by that country, state, or4138
province.4139

       (P) "Include," when used in a definition, does not exclude4140
other things or persons otherwise within the meaning of the term4141
defined.4142

       (Q)(1) "Registration by description" means that the4143
requirements of section 1707.08 of the Revised Code have been4144
complied with.4145

       (2) "Registration by qualification" means that the4146
requirements of sections 1707.09 and 1707.11 of the Revised Code4147
have been complied with.4148

       (3) "Registration by coordination" means that there has been4149
compliance with section 1707.091 of the Revised Code. Reference in4150
this chapter to registration by qualification also shall be deemed4151
to include registration by coordination unless the context4152
otherwise indicates.4153

       (R) "Intoxicating liquor" includes all liquids and compounds4154
that contain more than three and two-tenths per cent of alcohol by4155
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, any4159
association engaged, as a substantial part of its business or4160
operations, in purchasing or holding securities, or any trust in4161
respect of which a bank is trustee or cotrustee. "Institutional4162
investor" does not include any business entity formed for the4163
primary purpose of evading sections 1707.01 to 1707.45 of the4164
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. 80a4170
mean the federal statutes of those names as amended before or4171
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 to4176
purchase any equity security of a subject company from a resident4177
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 pending4183
control bid by a person other than the issuer, and the number of4184
the issued and outstanding shares of the subject company would be4185
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 in4189
the ordinary course of business of buying and selling securities;4190

       (b) An offer to acquire any equity security solely in4191
exchange for any other security, or the acquisition of any equity4192
security pursuant to an offer, for the sole account of the4193
offeror, in good faith and not for the purpose of avoiding the4194
provisions of this chapter, and not involving any public offering4195
of the other security within the meaning of Section 4 of Title I4196
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 the4199
acquisition of any equity security pursuant to an offer, for the4200
sole account of the offeror, from not more than fifty persons, in4201
good faith and not for the purpose of avoiding the provisions of4202
this chapter.4203

       (W) "Offeror" means a person who makes, or in any way4204
participates or aids in making, a control bid and includes persons4205
acting jointly or in concert, or who intend to exercise jointly or4206
in concert any voting rights attached to the securities for which4207
the control bid is made and also includes any subject company4208
making a control bid for its own securities.4209

       (X)(1) "Investment adviser" means any person who, for4210
compensation, engages in the business of advising others, either4211
directly or through publications or writings, as to the value of4212
securities or as to the advisability of investing in, purchasing,4213
or selling securities, or who, for compensation and as a part of4214
regular business, issues or promulgates analyses or reports4215
concerning securities.4216

       (2) "Investment adviser" does not mean any of the following:4217

       (a) Any attorney, accountant, engineer, or teacher, whose4218
performance of investment advisory services described in division4219
(X)(1) of this section is solely incidental to the practice of the4220
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 regular4223
circulation;4224

       (c) A person who acts solely as an investment adviser4225
representative;4226

       (d) A bank holding company, as defined in the "Bank Holding4227
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an4228
investment company;4229

       (e) A bank, or any receiver, conservator, or other4230
liquidating agent of a bank;4231

       (f) Any licensed dealer or licensed salesperson whose4232
performance of investment advisory services described in division4233
(X)(1) of this section is solely incidental to the conduct of the4234
dealer's or salesperson's business as a licensed dealer or4235
licensed salesperson and who receives no special compensation for4236
the services;4237

       (g) Any person, the advice, analyses, or reports of which do4238
not relate to securities other than securities that are direct4239
obligations of, or obligations guaranteed as to principal or4240
interest by, the United States, or securities issued or guaranteed4241
by corporations in which the United States has a direct or4242
indirect interest, and that have been designated by the secretary4243
of the treasury as exempt securities as defined in the "Securities4244
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c;4245

       (h) Any person that is excluded from the definition of4246
investment adviser pursuant to section 202(a)(11)(A) to (E) of the4247
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that4248
has received an order from the securities and exchange commission4249
under section 202(a)(11)(F) of the "Investment Advisers Act of4250
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not4251
within the intent of section 202(a)(11) of the Investment Advisers4252
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 or4257
appropriate in the public interest or for the protection of4258
investors or clients and consistent with the purposes fairly4259
intended by the policy and provisions of this chapter.4260

       (Y)(1) "Subject company" means an issuer that satisfies both4261
of the following:4262

       (a) Its principal place of business or its principal4263
executive office is located in this state, or it owns or controls4264
assets located within this state that have a fair market value of4265
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 establish4273
more specific application of the provisions set forth in division4274
(Y)(1) of this section. Notwithstanding the provisions set forth4275
in division (Y)(1) of this section and any rules adopted under4276
this division, the division, by rule or in an adjudicatory4277
proceeding, may make a determination that an issuer does not4278
constitute a "subject company" under division (Y)(1) of this4279
section if appropriate review of control bids involving the issuer4280
is to be made by any regulatory authority of another jurisdiction.4281

       (Z) "Beneficial owner" includes any person who directly or4282
indirectly through any contract, arrangement, understanding, or4283
relationship has or shares, or otherwise has or shares, the power4284
to vote or direct the voting of a security or the power to dispose4285
of, or direct the disposition of, the security. "Beneficial4286
ownership" includes the right, exercisable within sixty days, to4287
acquire any security through the exercise of any option, warrant,4288
or right, the conversion of any convertible security, or4289
otherwise. Any security subject to any such option, warrant,4290
right, or conversion privilege held by any person shall be deemed4291
to be outstanding for the purpose of computing the percentage of4292
outstanding securities of the class owned by that person, but4293
shall not be deemed to be outstanding for the purpose of computing4294
the percentage of the class owned by any other person. A person4295
shall be deemed the beneficial owner of any security beneficially4296
owned by any relative or spouse or relative of the spouse residing4297
in the home of that person, any trust or estate in which that4298
person owns ten per cent or more of the total beneficial interest4299
or serves as trustee or executor, any corporation or entity in4300
which that person owns ten per cent or more of the equity, and any4301
affiliate or associate of that person.4302

       (AA) "Offeree" means the beneficial or record owner of any4303
security that an offeror acquires or offers to acquire in4304
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 carrying4307
any warrant or right to subscribe to or purchase any such4308
security, or any such warrant or right, or any other security4309
that, for the protection of security holders, is treated as an4310
equity security pursuant to rules of the division of securities.4311

       (CC)(1) "Investment adviser representative" means a4312
supervised person of an investment adviser, provided that the4313
supervised person has more than five clients who are natural4314
persons other than excepted persons defined in division (EE) of4315
this section, and that more than ten per cent of the supervised4316
person's clients are natural persons other than excepted persons4317
defined in division (EE) of this section. "Investment adviser4318
representative" does not mean any of the following:4319

       (a) A supervised person that does not on a regular basis4320
solicit, meet with, or otherwise communicate with clients of the4321
investment adviser;4322

       (b) A supervised person that provides only investment4323
advisory services described in division (X)(1) of this section by4324
means of written materials or oral statements that do not purport4325
to meet the objectives or needs of specific individuals or4326
accounts;4327

       (c) Any other person that the division designates by rule, if 4328
the division finds that the designation is necessary or4329
appropriate in the public interest or for the protection of4330
investors or clients and is consistent with the provisions fairly4331
intended by the policy and provisions of this chapter.4332

       (2) For the purpose of the calculation of clients in division4333
(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 the4341
only primary beneficiaries. Persons who are not residents of the4342
United States need not be included in the calculation of clients4343
under division (CC)(1) of this section.4344

       (3) If subsequent to March 18, 1999, amendments are enacted4345
or adopted defining "investment adviser representative" for4346
purposes of the Investment Advisers Act of 1940 or additional4347
rules or regulations are promulgated by the securities and4348
exchange commission regarding the definition of "investment4349
adviser representative" for purposes of the Investment Advisers4350
Act of 1940, the division of securities shall, by rule, adopt the4351
substance of the amendments, rules, or regulations, unless the4352
division finds that the amendments, rules, or regulations are not4353
necessary for the protection of investors or in the public4354
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 services4362
described in division (X)(1) of this section on behalf of the4363
investment adviser and is subject to the supervision and control4364
of the investment adviser.4365

       (EE) "Excepted person" means a natural person to whom any of4366
the following applies:4367

       (1) Immediately after entering into the investment advisory4368
contract with the investment adviser, the person has at least4369
seven hundred fifty thousand dollars under the management of the4370
investment adviser.4371

       (2) The investment adviser reasonably believes either of the4372
following at the time the investment advisory contract is entered4373
into with the person:4374

       (a) The person has a net worth, together with assets held4375
jointly with a spouse, of more than one million five hundred4376
thousand dollars.4377

       (b) The person is a qualified purchaser as defined in4378
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 an4386
employee performing solely clerical, secretarial, or4387
administrative functions or duties for the investment adviser,4388
which employee, in connection with the employee's regular4389
functions or duties, participates in the investment activities of4390
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 the4393
investment adviser or performing substantially similar functions4394
or duties for or on behalf of another company.4395

       If subsequent to March 18, 1999, amendments are enacted or4396
adopted defining "excepted person" for purposes of the Investment4397
Advisers Act of 1940 or additional rules or regulations are4398
promulgated by the securities and exchange commission regarding4399
the definition of "excepted person" for purposes of the Investment4400
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, or4403
regulations are not necessary for the protection of investors or4404
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 million4407
dollars in investments as defined by rule by the division of4408
securities;4409

       (b) A natural person, acting for the person's own account or4410
accounts of other qualified purchasers, who in the aggregate owns4411
and invests on a discretionary basis, not less than twenty-five4412
million dollars in investments as defined by rule by the division4413
of securities.4414

       (2) If subsequent to March 18, 1999, amendments are enacted4415
or adopted defining "qualified purchaser" for purposes of the4416
Investment Advisers Act of 1940 or additional rules or regulations4417
are promulgated by the securities and exchange commission4418
regarding the definition of "qualified purchaser" for purposes of4419
the Investment Advisers Act of 1940, the division of securities4420
shall, by rule, adopt the amendments, rules, or regulations,4421
unless the division finds that the amendments, rules, or4422
regulations are not necessary for the protection of investors or4423
in the public interest.4424

       (GG)(1) "Purchase" has the full meaning of "purchase" as4425
applied by or accepted in courts of law or equity and includes4426
every acquisition of, or attempt to acquire, a security or an4427
interest in a security. "Purchase" also includes a contract to4428
purchase, an exchange, an attempt to purchase, an option to4429
purchase, a solicitation of a purchase, a solicitation of an offer4430
to sell, a subscription, or an offer to purchase, directly or4431
indirectly, by agent, circular, pamphlet, advertisement, or4432
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 or4438
any fractional interest in an insurance policy or certificate of4439
insurance, or in an insurance benefit under such a policy or4440
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 or4444
ownership of any life insurance policy or contract, in return for4445
consideration or any other thing of value that is less than the4446
expected death benefit of the life insurance policy or contract.4447
"Life settlement contract" includes a viatical settlement contract4448
as defined in section 3916.01 of the Revised Code, but does not4449
include any of the following:4450

       (1) A loan by an insurer under the terms of a life insurance4451
policy, including, but not limited to, a loan secured by the cash4452
value of the policy;4453

       (2) An agreement with a bank that takes an assignment of a4454
life insurance policy as collateral for a loan;4455

       (3) The provision of accelerated benefits as defined in4456
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 existing4459
life insurance policy or contract from the original owner of the4460
policy or contract, if the individual does not enter into more4461
than one life settlement contract per calendar year;4462

       (6) The initial purchase of an insurance policy or4463
certificate of insurance from its owner by a viatical settlement4464
provider, as defined in section 3916.01 of the Revised Code, that4465
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" means4477
that, except in the case of securities the right to buy, sell, or4478
deal in which has been suspended or revoked under an existing4479
order of the division of securities under section 1707.13 of the4480
Revised Code or under a cease and desist order under division 4481
(H)(G) of section 1707.23 of the Revised Code, transactions in4482
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 fide4485
owner, neither the issuer nor a dealer, is exempt if the sale is4486
made in good faith and not for the purpose of avoiding this4487
chapter and is not made in the course of repeated and successive4488
transactions of a similar character. Any sale of securities over a 4489
stock exchange that is lawfully conducted in this state and4490
regularly open for public patronage and that has been established4491
and operated for a period of at least five years prior to the sale4492
at a commission not exceeding the commission regularly charged in4493
such transactions also is exempt.4494

       (C) The sale of securities by executors, administrators,4495
receivers, trustees, or anyone acting in a fiduciary capacity is4496
exempt, where such relationship was created by law, by a will, or4497
by judicial authority, and where such sales are subject to4498
approval by, or are made in pursuance to authority granted by, any4499
court of competent jurisdiction or are otherwise authorized and4500
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 of4507
its stock because of delinquency in payment for the shares is4508
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 by4512
description, by coordination, or by qualification, or is the4513
subject matter of a transaction that has been registered by4514
description is exempt.4515

       (2) The giving of any subscription right, warrant, or option4516
to purchase a security or right to receive a security upon4517
exchange, which security is exempt at the time the right, warrant,4518
or option to purchase or right to receive is given, is the subject4519
matter of an exempt transaction, is registered by description, by4520
coordination, or by qualification, or is the subject matter of a4521
transaction that has been registered by description is exempt.4522

       (3) The giving of any subscription right or any warrant or4523
option to purchase a security, which right, warrant, or option4524
expressly provides that it shall not be exercisable except for a4525
security that at the time of the exercise is exempt, is the4526
subject matter of an exempt transaction, is registered by4527
description, by coordination, or by qualification, or at such time4528
is the subject matter of a transaction that has been registered by4529
description is exempt.4530

       (H) The sale of notes, bonds, or other evidences of4531
indebtedness that are secured by a mortgage lien upon real estate,4532
leasehold estate other than oil, gas, or mining leasehold, or4533
tangible personal property, or which evidence of indebtedness is4534
due under or based upon a conditional-sale contract, if all such4535
notes, bonds, or other evidences of indebtedness are sold to a4536
single purchaser at a single sale, is exempt.4537

       (I) The delivery of securities by the issuer on the exercise4538
of conversion rights, the sale of securities by the issuer on4539
exercise of subscription rights or of warrants or options to4540
purchase securities, the delivery of voting-trust certificates for4541
securities deposited under a voting-trust agreement, the delivery4542
of deposited securities on surrender of voting-trust certificates,4543
and the delivery of final certificates on surrender of interim4544
certificates are exempt; but the sale of securities on exercise of4545
subscription rights, warrants, or options is not an exempt4546
transaction unless those rights, warrants, or options when granted4547
were the subject matter of an exempt transaction under division4548
(G) of this section or were registered by description, by4549
coordination, or by qualification.4550

       (J) The sale of securities by a bank, savings and loan4551
association, savings bank, or credit union organized under the4552
laws of the United States or of this state is exempt if at a4553
profit to that seller of not more than two per cent of the total4554
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 its4559
securities or of the securities of any of the issuer's wholly4560
owned subsidiaries exclusively with or to its existing security4561
holders, if no commission or other remuneration is given directly4562
or indirectly for soliciting the exchange, is exempt.4563

       (3) The sale of preorganization subscriptions for shares of4564
stock of a corporation prior to the incorporation of the4565
corporation is exempt, when the sale is evidenced by a written4566
agreement, no remuneration is given, or promised, directly or4567
indirectly, for or in connection with the sale of those4568
securities, and no consideration is received, directly or4569
indirectly, by any person from the purchasers of those securities4570
until registration by qualification, by coordination, or by4571
description of those securities is made under this chapter.4572

       (L) The issuance of securities in exchange for one or more4573
bona fide outstanding securities, claims, or property interests,4574
not including securities sold for a consideration payable in whole4575
or in part in cash, under a plan of reorganization,4576
recapitalization, or refinancing approved by a court pursuant to4577
the Bankruptcy Act of the United States or to any other federal4578
act giving any federal court jurisdiction over such plan of4579
reorganization, or under a plan of reorganization approved by a4580
court of competent jurisdiction of any state of the United States4581
is exempt. As used in this division, "reorganization,"4582
"recapitalization," and "refinancing" have the same meanings as in4583
section 1707.04 of the Revised Code.4584

       (M) A sale by a licensed dealer, acting either as principal4585
or as agent, of securities issued and outstanding before the sale4586
is exempt, unless the sale is of one or more of the following:4587

       (1) Securities constituting the whole or a part of an unsold4588
allotment to or subscription by a dealer as an underwriter or4589
other participant in the distribution of those securities by the4590
issuer, whether that distribution is direct or through an4591
underwriter, provided that, if the issuer is such by reason of4592
owning one-fourth or more of those securities, the dealer has4593
knowledge of this fact or reasonable cause to believe this fact;4594

       (2) Any class of shares issued by a corporation when the4595
number of beneficial owners of that class is less than4596
twenty-five, with the record owner of securities being deemed the4597
beneficial owner for this purpose, in the absence of actual4598
knowledge to the contrary;4599

       (3) Securities that within one year were purchased outside4600
this state or within one year were transported into this state, if4601
the dealer has knowledge or reasonable cause to believe, before4602
the sale of those securities, that within one year they were4603
purchased outside this state or within one year were transported4604
into this state; but such a sale of those securities is exempt if4605
any of the following occurs:4606

       (a) A recognized securities manual contains the names of the4607
issuer's officers and directors, a balance sheet of the issuer as4608
of a date within eighteen months, and a profit and loss statement4609
for either the fiscal year preceding that date or the most recent4610
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 or4614
qualification is in full force and effect;4615

       (c) The sale is made by a licensed dealer on behalf of the4616
bona fide owner of those securities in accordance with division4617
(B) of this section;4618

       (d) Those securities were transported into Ohio in a4619
transaction of the type described in division (L), (K), or (I) of4620
this section, or in a transaction registered under division (A) of4621
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; and4631
"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 the4638
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 all4641
securities issued or sold by the issuer in reliance upon this4642
exemption during the period of one year ending with the date of4643
the sale does not exceed ten. A sale of securities registered4644
under this chapter or sold pursuant to an exemption under this4645
chapter other than this exemption shall not be integrated with a4646
sale pursuant to this exemption in computing the number of4647
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 reasonable4655
investigation that the purchaser is purchasing for investment.4656

       (e) The aggregate commission, discount, and other4657
remuneration, excluding legal, accounting, and printing fees, paid4658
or given directly or indirectly does not exceed ten per cent of4659
the initial offering price.4660

       (f) Any such commission, discount, or other remuneration for4661
sales in this state is paid or given only to dealers or4662
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, "equity4674
security" means any stock or similar security of a corporation or4675
any membership interest in a limited liability company; or any4676
security convertible, with or without consideration, into such a4677
security, or carrying any warrant or right to subscribe to or4678
purchase such a security; or any such warrant or right; or any4679
other security that the division considers necessary or4680
appropriate, by such rules as it may prescribe in the public4681
interest or for the protection of investors, to treat as an equity4682
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 will4692
not after the sale, exceed five natural persons;4693

       (2) The securities constitute or represent interests in not4694
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 the4707
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 other4712
remuneration, excluding legal, accounting, and printing fees, paid4713
or given directly or indirectly does not exceed ten per cent of4714
the initial offering price.4715

       (3) Any such commission, discount, or other remuneration for4716
sales in this state is paid or given only to dealers or4717
salespersons registered under this chapter.4718

       (4) The issuer or dealer files with the division of4719
securities, not later than sixty days after the sale, a report4720
setting forth the name and address of the issuer, the total amount4721
of the securities sold under this division, the number of persons4722
to whom the securities were sold, the price at which the4723
securities were sold, and the commissions or discounts paid or4724
given.4725

       (5) The issuer pays a filing fee of one hundred dollars for4726
the first filing and fifty dollars for every subsequent filing4727
during each calendar year.4728

       (R) A sale of a money order, travelers' check, or other4729
instrument for the transmission of money by a person qualified to4730
engage in such business under section 1109.60 or Chapter 1315. of4731
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 of4735
registration, if registration is required under this chapter, is4736
exempt, provided that no sale of that nature shall be consummated4737
prior to the registration by description or qualification of the4738
securities.4739

       (T) The execution by a licensed dealer of orders for the4740
purchase of any security is exempt, provided that the dealer acts4741
only as agent for the purchaser, has made no solicitation of the4742
order to purchase the security, has no interest in the4743
distribution of the security, and delivers to the purchaser4744
written confirmation of the transaction that clearly itemizes the4745
dealer's commission. "Solicitation," as used in this division,4746
means solicitation of the order for the specific security4747
purchased and does not include general solicitations or4748
advertisements of any kind.4749

       (U) The sale insofar as the security holders of a person are4750
concerned, where, pursuant to statutory provisions of the4751
jurisdiction under which that person is organized or pursuant to4752
provisions contained in its articles of incorporation, certificate4753
of incorporation, partnership agreement, declaration of trust,4754
trust indenture, or similar controlling instrument, there is4755
submitted to the security holders, for their vote or consent, (1)4756
a plan or agreement for a reclassification of securities of that4757
person that involves the substitution of a security of that person4758
for another security of that person, (2) a plan or agreement of4759
merger or consolidation or a similar plan or agreement of4760
acquisition in which the securities of that person held by the4761
security holders will become or be exchanged for securities of any4762
other person, or (3) a plan or agreement for a combination as4763
defined in division (Q) of section 1701.01 of the Revised Code or4764
a similar plan or agreement for the transfer of assets of that4765
person to another person in consideration of the issuance of4766
securities of any person, is exempt if, with respect to any of the4767
foregoing transactions, either of the following conditions is4768
satisfied:4769

       (a) The securities to be issued to the security holders are4770
effectively registered under sections 6 to 8 of the Securities Act4771
of 1933 and offered and sold in compliance with section 5 of that4772
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 the4777
person whose securities are to be issued in the transaction,4778
information substantially equivalent to the information that would4779
be required to be included in a proxy statement or information4780
statement prepared by or on behalf of the management of an issuer4781
subject to section 14(a) or 14(c) of the Securities Exchange Act4782
of 1934.4783

       (V) The sale of any security is exempt if the division by4784
rule finds that registration is not necessary or appropriate in4785
the public interest or for the protection of investors.4786

       (W) Any offer or sale of securities made in reliance on the4787
exemptions provided by Rule 505 of Regulation D made pursuant to4788
the Securities Act of 1933 and the conditions and definitions4789
provided by Rules 501 to 503 thereunder is exempt if the offer or4790
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 under4796
division (W)(2)(b) of this section, no exemption under this4797
section is available for the securities of an issuer unless the4798
issuer did not know and in the exercise of reasonable care could4799
not have known that any of the following applies to any of the4800
persons described in Rule 262(a) to (c) of Regulation A under the4801
Securities Act of 1933:4802

       (i) The person has filed an application for registration or4803
qualification that is the subject of an effective order entered4804
against the issuer, its officers, directors, general partners,4805
controlling persons or affiliates thereof, pursuant to the law of4806
any state within five years before the filing of a notice required4807
under division (W)(3) of this section denying effectiveness to, or4808
suspending or revoking the effectiveness of, the registration4809
statement.4810

       (ii) The person has been convicted of any offense in4811
connection with the offer, sale, or purchase of any security or4812
franchise, or any felony involving fraud or deceit, including, but4813
not limited to, forgery, embezzlement, fraud, theft, or conspiracy4814
to defraud.4815

       (iii) The person is subject to an effective administrative4816
order or judgment that was entered by a state securities4817
administrator within five years before the filing of a notice4818
required under division (W)(3) of this section and that prohibits,4819
denies, or revokes the use of any exemption from securities4820
registration, prohibits the transaction of business by the person4821
as a dealer, or is based on fraud, deceit, an untrue statement of4822
a material fact, or an omission to state a material fact.4823

       (iv) The person is subject to any order, judgment, or decree4824
of any court entered within five years before the filing of a4825
notice required under division (W)(3) of this section,4826
temporarily, preliminarily, or permanently restraining or4827
enjoining the person from engaging in or continuing any conduct or4828
practice in connection with the offer, sale, or purchase of any4829
security, or the making of any false filing with any state.4830

       (b)(i) Any disqualification under this division involving a4831
dealer may be waived if the dealer is or continues to be licensed4832
in this state as a dealer after notifying the commissioner of the4833
act or event causing disqualification.4834

       (ii) The commissioner may waive any disqualification under4835
this paragraph upon a showing of good cause that it is not4836
necessary under the circumstances that use of the exemption be4837
denied.4838

       (3) Not later than five business days before the earlier of4839
the date on which the first use of an offering document or the4840
first sale is made in this state in reliance on the exemption4841
under this division, there is filed with the commissioner a notice4842
comprised of offering material in compliance with the requirements4843
of Rule 502 of Regulation D under the Securities Act of 1933 and a4844
fee of one hundred dollars. Material amendments to the offering4845
document shall be filed with the commissioner not later than the4846
date of their first use in this state.4847

       (4) The aggregate commission, discount, and other4848
remuneration paid or given, directly or indirectly, does not4849
exceed twelve per cent of the initial offering price, excluding4850
legal, accounting, and printing fees.4851

       (X) Any offer or sale of securities made in reliance on the4852
exemption provided in Rule 506 of Regulation D under the4853
Securities Act of 1933, and in accordance with Rules 501 to 503 of4854
Regulation D under the Securities Act of 1933, is exempt provided4855
that all of the following apply:4856

       (1) The issuer makes a notice filing with the division on4857
form D of the securities and exchange commission within fifteen4858
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 to4863
the division; however, no filing fee shall be required to file4864
amendments to the form D of the securities and exchange4865
commission.4866

       (Y) The offer or sale of securities by an issuer is exempt4867
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 as4870
defined in Rule 501 of Regulation D under the Securities Act of4871
1933.4872

       (2) The issuer reasonably believes that all purchasers are4873
purchasing for investment and not with a view to or for sale in4874
connection with a distribution of the security. Any resale of a4875
security sold in reliance on this exemption within twelve months4876
of sale shall be presumed to be with a view to distribution and4877
not for investment, except a resale to which any of the following4878
applies:4879

       (a) The resale is pursuant to a registration statement4880
effective under section 1707.09 or 1707.091 of the Revised Code.4881

       (b) The resale is to an accredited investor, as defined in4882
Rule 501 of Regulation D under the Securities Act of 1933.4883

       (c) The resale is to an institutional investor pursuant to4884
the exemptions under division (B) or (D) of this section.4885

       (3) The exemption under this division is not available to an4886
issuer that is in the development stage and that either has no4887
specific business plan or purpose or has indicated that its4888
business plan is to engage in a merger or acquisition with an4889
unidentified company or companies, or other entities or persons.4890

       (4) The exemption under this division is not available to an4891
issuer, if the issuer, any of the issuer's predecessors, any4892
affiliated issuer, any of the issuer's directors, officers,4893
general partners, or beneficial owners of ten per cent or more of4894
any class of its equity securities, any of the issuer's promoters4895
presently connected with the issuer in any capacity, any4896
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 registration4899
statement that is the subject of a currently effective4900
registration stop order entered by any state securities4901
administrator or the securities and exchange commission;4902

       (b) Within the past five years, has been convicted of any4903
criminal offense in connection with the offer, purchase, or sale4904
of any security, or involving fraud or deceit;4905

       (c) Is currently subject to any state or federal4906
administrative enforcement order or judgment, entered within the4907
past five years, finding fraud or deceit in connection with the4908
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 or4918
registered to conduct securities business in the state in which4919
the order, judgment, or decree creating the disqualification was4920
entered against the party described in division (Y)(4) of this4921
section.4922

       (b) Before the first offer is made under this exemption, the4923
state securities administrator, or the court or regulatory4924
authority that entered the order, judgment, or decree, waives the4925
disqualification.4926

       (c) The issuer did not know and, in the exercise of4927
reasonable care based on reasonable investigation, could not have4928
known that a disqualification from the exemption existed under4929
division (Y)(4) of this section.4930

       (6) A general announcement of the proposed offering may be4931
made by any means; however, the general announcement shall include4932
only the following information, unless additional information is4933
specifically permitted by the division by rule:4934

       (a) The name, address, and telephone number of the issuer of4935
the securities;4936

       (b) The name, a brief description, and price of any security4937
to be issued;4938

       (c) A brief description of the business of the issuer;4939

       (d) The type, number, and aggregate amount of securities4940
being offered;4941

       (e) The name, address, and telephone number of the person to4942
contact for additional information; and4943

       (f) A statement indicating all of the following:4944

       (i) Sales will only be made to accredited investors as4945
defined in Rule 501 of Regulation D under the Securities Act of4946
1933;4947

       (ii) No money or other consideration is being solicited or4948
will be accepted by way of this general announcement;4949

       (iii) The securities have not been registered with or4950
approved by any state securities administrator or the securities4951
and exchange commission and are being offered and sold pursuant to4952
an exemption from registration.4953

       (7) The issuer, in connection with an offer, may provide4954
information in addition to the general announcement described in4955
division (Y)(6) of this section, provided that either of the4956
following applies:4957

       (a) The information is delivered through an electronic4958
database that is restricted to persons that are accredited4959
investors as defined in Rule 501 of Regulation D under the4960
Securities Act of 1933.4961

       (b) The information is delivered after the issuer reasonably4962
believes that the prospective purchaser is an accredited investor4963
as defined in Rule 501 of Regulation D under the Securities Act of4964
1933.4965

       (8) No telephone solicitation shall be done, unless prior to4966
placing the telephone call, the issuer reasonably believes that4967
the prospective purchaser to be solicited is an accredited4968
investor as defined in Rule 501 of Regulation D under the4969
Securities Act of 1933.4970

       (9) Dissemination of the general announcement described in4971
division (Y)(6) of this section to persons that are not accredited4972
investors, as defined in Rule 501 of Regulation D under the4973
Securities Act of 1933, does not disqualify the issuer from4974
claiming an exemption under this division.4975

       (10) The issuer shall file with the division notice of the4976
offering of securities within fifteen days after notice of the4977
offering is made or a general announcement is made in this state.4978
The filing shall be on forms adopted by the division and shall4979
include a copy of the general announcement, if one is made4980
regarding the proposed offering, and copies of any offering4981
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 and5023
salesperson of securities shall expire on the thirty-first day of5024
December of each year, and may be renewed upon the filing with the5025
division of securities of an application for renewal, and the5026
payment of the fee prescribed in this section. The division shall5027
give notice, without unreasonable delay, of its action on any5028
application for renewal of a dealer's or salesperson's license.5029

       (2) The license of every investment adviser and investment5030
adviser representative licensed under section 1707.141 or 1707.1615031
of the Revised Code shall expire on the thirty-first day of5032
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. The5035
division shall give notice, without unreasonable delay, of its5036
action on any application for renewal.5037

       (3) An investment adviser required to make a notice filing5038
under division (B) of section 1707.141 of the Revised Code5039
annually shall file with the division the notice filing and the5040
fee prescribed in division (B) of this section, no later than the5041
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 annual5050
renewal thereof, shall be one hundred dollars. The fee for the5051
examination of applicant dealers, when administered by the5052
division, shall be seventy-five dollars.5053

       (2) The fee for each salesperson's license, and for each5054
annual renewal thereof, shall be fifty dollars. The fee for the5055
examination of an applicant salesperson, when administered by the5056
division, shall be fifty dollars.5057

       (3) The fee for each investment adviser's license, and for5058
each annual renewal thereof, shall be fifty dollars.5059

       (4) The fee for each investment adviser notice filing5060
required by division (B) of section 1707.141 of the Revised Code5061
shall be fifty dollars.5062

       (5) The fee for each investment adviser representative's5063
license, and for each annual renewal thereof, shall be thirty-five5064
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, or5069
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 or an, investment adviser representative, or 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, may5079
be revoked, by the division of securities, if the division 5080
determines that the applicant or the licensed dealer, salesperson, 5081
investment adviser, or investment adviser representative, or state 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 fact5091
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 any5093
statement made to the division under such sections;5094

       (6) Has refused to comply with any lawful order or5095
requirement of the division under section 1707.23 of the Revised5096
Code;5097

       (7) Has been guilty of any fraudulent act in connection with5098
the sale of any securities or in connection with acting as an5099
investment adviser or, investment adviser representative, or state 5100
retirement system investment officer;5101

       (8) Conducts business in purchasing or selling securities at5102
such variations from the existing market as in the light of all5103
the circumstances are unconscionable;5104

       (9) Conducts business in violation of such rules and5105
regulations as the division prescribes for the protection of5106
investors, clients, or prospective clients;5107

       (10)(a) Has failed to furnish to the division any information5108
with respect to the purchases or sales of securities within this5109
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 information5112
with respect to acting as an investment adviser or an, investment5113
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 may5117
prescribe reasonable rules defining fraudulent, evasive,5118
deceptive, or grossly unfair practices or devices in the purchase5119
or sale of securities.5120

       (C) For the protection of investors, clients, or prospective5121
clients, the division may prescribe reasonable rules regarding the5122
acts and practices of an investment adviser or an investment5123
adviser representative.5124

       (D) Pending any investigation or hearing provided for in5125
sections 1707.01 to 1707.45 of the Revised Code, the division may5126
order the suspension of any dealer's, salesperson's, investment5127
adviser's, or investment adviser representative's, or state 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 license5140
suspends the licenses of all the dealer's salespersons.5141

       (2) The suspension or revocation of the investment adviser's5142
license suspends the licenses of all the investment adviser's5143
investment adviser representatives. The suspension or revocation5144
of an investment adviser's registration under section 203 of the5145
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the5146
licenses of all the investment adviser's investment adviser5147
representatives.5148

       (F) It is sufficient cause for refusal, revocation, or5149
suspension of the license in case of a partnership, partnership5150
association, corporation, or unincorporated association if any5151
general partner of the partnership, manager of the partnership5152
association, or executive officer of the corporation or5153
unincorporated association is not of good business repute or has5154
been guilty of any act or omission which would be cause for5155
refusing or revoking the license of an individual dealer,5156
salesperson, investment adviser, or investment adviser5157
representative.5158

       Sec. 1707.20.  (A) The division of securities may adopt,5159
amend, and rescind such rules, forms, and orders as are necessary5160
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 not5163
used in sections 1707.01 to 1707.45 of the Revised Code, insofar5164
as the definitions are not inconsistent with these sections. For5165
the purpose of rules and forms, the division may classify5166
securities, persons, and matters within its jurisdiction, and5167
prescribe different requirements for different classes.5168

       (B) No rule, form, or order may be made, amended, or5169
rescinded unless the division finds that the action is necessary5170
or appropriate in the public interest or for the protection of5171
investors, clients, or prospective clients, or state retirement 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 required5184
under sections 1707.01 to 1707.45 of the Revised Code;5185

       (2) The circumstances under which consolidated financial5186
statements shall be filed;5187

       (3) Whether any required financial statements shall be5188
certified by independent or certified public accountants. All5189
financial statements shall be prepared in accordance with5190
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. of5193
the Revised Code, the division shall prescribe, and shall publish5194
and make available its rules regarding the sale of securities, the5195
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 the5198
Revised Code imposing any liability applies to any act done or5199
omitted in good faith in conformity with any rule, form, or order5200
of the division of securities, notwithstanding that the rule,5201
form, or order may later be amended or rescinded or be determined5202
by judicial or other authority to be invalid for any reason,5203
except that the issuance of an order granting effectiveness to a5204
registration under section 1707.09 or 1707.091 of the Revised Code5205
for the purposes of this division shall not be deemed an order5206
other than as the establishment of the fact of registration.5207

       Sec. 1707.22.  Whenever a dealer's, salesperson's, investment 5208
adviser's, or investment adviser representative's, or state 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 party5217
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, or5220
investment adviser representative's, or state retirement system 5221
investment officer's license or to grant qualification of5222
securities, or an order sustaining the division in suspending or 5223
revoking a dealer's, salesperson's, investment adviser's, or5224
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 new5229
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 of5237
securities, from its files, upon complaint, or otherwise, that any5238
person has engaged in, is engaged in, or is about to engage in any5239
practice declared to be illegal or prohibited by this chapter or5240
rules adopted under this chapter by the division, or defined as5241
fraudulent in this chapter or rules adopted under this chapter by 5242
the division, or any other deceptive scheme or practice in5243
connection with the sale of securities, or acting as a dealer, a 5244
salesperson, an investment adviser or, 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 it5250
prescribes, an original or additional statement or report in5251
writing, under oath or otherwise, as to any facts or circumstances5252
concerning the issuance, sale, or offer for sale of securities5253
within this state by the person, as to the person's acts or5254
practices as a dealer, a salesperson, an investment adviser or,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 adviser5259
representative, state retirement system investment officer, or any5260
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, and5264
papers as the division deems material or relevant to the inquiry;5265

       (C) Require the attendance of witnesses, and the production5266
of books, records, and papers, as are required either by the5267
division or by any party to a hearing before the division, and for5268
that purpose issue a subpoena for any witness, or a subpoena duces5269
tecum to compel the production of any books, records, or papers.5270
The subpoena shall be served by personal service or by certified5271
mail, return receipt requested. If the subpoena is returned5272
because of inability to deliver, or if no return is received5273
within thirty days of the date of mailing, the subpoena may be5274
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 residence5280
service under this division may be the sheriff of the county in 5281
which the witness resides or may be found or any other duly5282
designated person. The fees and mileage of the person serving the 5283
subpoena shall be the same as those allowed by the courts of5284
common pleas in criminal cases, and shall be paid from the funds5285
of the division. Fees and mileage for the witness shall be the5286
same as those allowed for witnesses by the courts of common pleas5287
in criminal cases, and shall be paid from the funds of the5288
division upon request of the witness following the hearing.5289

       (D) Proceed under section 1707.19 of the Revised Code to5290
refuse a license applied for by a dealer, salesperson, investment5291
adviser, or investment adviser representative or to suspend the5292
license of any licensed dealer, licensed salesperson, licensed5293
investment adviser, or licensed investment adviser representative5294
and ultimately, if the division determines, revoke such license5295
under that section;5296

       (E) Initiate criminal proceedings under section 1707.042 or5297
1707.44 of the Revised Code or rules adopted under those sections5298
by the division by laying before the prosecuting attorney of the5299
proper county any evidence of criminality which comes to its5300
knowledge; and in the event of the neglect or refusal of the5301
prosecuting attorney to prosecute such violations, or at the5302
request of the prosecuting attorney, the division shall submit the5303
evidence to the attorney general, who may proceed in the5304
prosecution with all the rights, privileges, and powers conferred5305
by law on prosecuting attorneys, including the power to appear5306
before grand juries and to interrogate witnesses before such grand5307
juries.5308

       (F)(E) Require any dealers immediately to furnish to the5309
division copies of prospectuses, circulars, or advertisements5310
respecting securities that they publish or generally distribute,5311
or require any investment advisers immediately to furnish to the5312
division copies of brochures, advertisements, publications,5313
analyses, reports, or other writings that they publish or5314
distribute;5315

       (G)(F) Require any dealers to mail to the division, prior to5316
sale, notices of intention to sell, in respect to all securities5317
which are not exempt under section 1707.02 of the Revised Code, or5318
which are sold in transactions not exempt under section 1707.03 or5319
1707.04 of the Revised Code;5320

       (H)(G) Issue and cause to be served by certified mail upon5321
all persons affected an order requiring the person or persons to5322
cease and desist from the acts or practices appearing to the5323
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 the5328
violation. If after the issuance of the order it appears to the5329
division that any person or persons affected by the order have5330
engaged in any act or practice from which the person or persons5331
shall have been required, by the order, to cease and desist, the5332
director of commerce may apply to the court of common pleas of any5333
county for, and upon proof of the validity of the order of the5334
division, the delivery of the order to the person or persons5335
affected, and of the illegality and the continuation of the acts5336
or practices that are the subject of the order, the court may5337
grant an injunction implementing the order of the division.5338

       (I)(H) Issue and initiate contempt proceedings in this state5339
regarding subpoenas and subpoenas duces tecum at the request of5340
the securities administrator of another state, if it appears to5341
the division that the activities for which the information is5342
sought would violate this chapter if the activities had occurred5343
in this state.5344

       (J)(I) The remedies provided by this section are cumulative 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 or,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 without5446
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, any5448
interested person may apply in writing to the division of5449
securities for the qualification of such securities under such5450
sections. If it appears to the division that no person has been5451
defrauded, prejudiced, or damaged by such noncompliance or sale5452
and that no person will be defrauded, prejudiced, or damaged by5453
such qualification, the division may permit such securities to be5454
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 be5461
conducted in this state or outside this state. An itemized5462
statement of such expenses shall be furnished to the applicant.5463

       Such qualification shall estop the division from proceeding5464
under division (E)(D) of section 1707.23 of the Revised Code 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 section5468
1707.13 of the Revised Code.5469

       Sec. 1707.431.  For purposes of this section, the following5470
persons shall not be deemed to have effected, participated in, or5471
aided the seller in any way in making, a sale or contract of sale5472
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 or an,5476
investment adviser representative, or state retirement system 5477
investment officer, who brings any issuer together with any5478
potential investor, without receiving, directly or indirectly, a5479
commission, fee, or other remuneration based on the sale of any5480
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 a5485
publicly advertised meeting shall file a notice with the division5486
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 or5499
practice that violates division (A), (B), or (C) of section5500
1707.14 of the Revised Code, and no salesperson shall sell5501
securities in this state without being licensed pursuant to5502
section 1707.16 of the Revised Code.5503

       (2) No person shall engage in any act or practice that5504
violates division (A) of section 1707.141 or section 1707.161 of5505
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 any5509
false representation concerning a material and relevant fact, in5510
any oral statement or in any prospectus, circular, description,5511
application, or written statement, for any of the following5512
purposes:5513

       (1) Registering securities or transactions, or exempting5514
securities or transactions from registration, under this chapter;5515

       (2) Securing the qualification of any securities under this5516
chapter;5517

       (3) Procuring the licensing of any dealer, salesperson,5518
investment adviser, or investment adviser representative, or state 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 securities5522
or as to the advisability of investing in, purchasing, or selling5523
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, offer5528
for sale, or cause to be offered for sale, any security which5529
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 in5532
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not5533
been registered by coordination or qualification, and is not the5534
subject matter of a transaction that has been registered by5535
description;5536

       (2) The prescribed fees for registering by description, by5537
coordination, or by qualification have not been paid in respect to5538
such security;5539

       (3) The person has been notified by the division, or has5540
knowledge of the notice, that the right to buy, sell, or deal in5541
such security has been suspended or revoked, or that the5542
registration by description, by coordination, or by qualification5543
under which it may be sold has been suspended or revoked;5544

       (4) The offer or sale is accompanied by a statement that the5545
security offered or sold has been or is to be in any manner5546
indorsed by the division.5547

       (D) No person who is an officer, director, or trustee of, or5548
a dealer for, any issuer, and who knows such issuer to be5549
insolvent in that the liabilities of the issuer exceed its assets,5550
shall sell any securities of or for any such issuer, without5551
disclosing the fact of the insolvency to the purchaser.5552

       (E) No person with intent to aid in the sale of any5553
securities on behalf of the issuer, shall knowingly make any5554
representation not authorized by such issuer or at material5555
variance with statements and documents filed with the division by5556
such issuer.5557

       (F) No person, with intent to deceive, shall sell, cause to5558
be sold, offer for sale, or cause to be offered for sale, any5559
securities of an insolvent issuer, with knowledge that such issuer5560
is insolvent in that the liabilities of the issuer exceed its5561
assets, taken at their fair market value.5562

       (G) No person in purchasing or selling securities shall5563
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, or5566
trade with any person because the person appears on a blacklist5567
issued by, or is being boycotted by, any foreign corporate or5568
governmental entity, nor sell any securities of or for any issuer5569
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's5572
liabilities exceed the reasonable value of the dealer's assets,5573
shall accept money or securities, except in payment of or as5574
security for an existing debt, from a customer who is ignorant of5575
the dealer's insolvency, and thereby cause the customer to lose5576
any part of the customer's securities or the value of those5577
securities, by doing either of the following without the5578
customer's consent:5579

       (1) Pledging, selling, or otherwise disposing of such5580
securities, when the dealer has no lien on or any special property5581
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 own5584
benefit, when the dealer has a lien or indebtedness on such5585
securities.5586

       It is an affirmative defense to a charge under this division5587
that, at the time the securities involved were pledged, sold, or5588
disposed of, the dealer had in the dealer's possession or control,5589
and available for delivery, securities of the same kinds and in5590
amounts sufficient to satisfy all customers entitled to the5591
securities, upon demand and tender of any amount due on the5592
securities.5593

       (J) No person, with purpose to deceive, shall make, issue,5594
publish, or cause to be made, issued, or published any statement5595
or advertisement as to the value of securities, or as to alleged5596
facts affecting the value of securities, or as to the financial5597
condition of any issuer of securities, when the person knows that5598
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 report5601
of any transaction in securities which is false in any material5602
respect.5603

       (L) No dealer shall engage in any act that violates the5604
provisions of section 15(c) or 15(g) of the "Securities Exchange5605
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule5606
or regulation promulgated by the securities and exchange5607
commission thereunder. If, subsequent to October 11, 1994,5608
additional amendments to section 15(c) or 15(g) are adopted, or5609
additional rules or regulations are promulgated pursuant to such5610
sections, the division of securities shall, by rule, adopt the5611
amendments, rules, or regulations, unless the division finds that5612
the amendments, rules, or regulations are not necessary for the5613
protection of investors or in the public interest.5614

       (M)(1) No investment adviser or investment adviser5615
representative shall do any of the following:5616

       (a) Employ any device, scheme, or artifice to defraud any5617
person;5618

       (b) Engage in any act, practice, or course of business that5619
operates or would operate as a fraud or deceit upon any person;5620

       (c) In acting as principal for the investment adviser's or5621
investment adviser representative's own account, knowingly sell5622
any security to or purchase any security from a client, or in5623
acting as salesperson for a person other than such client,5624
knowingly effect any sale or purchase of any security for the5625
account of such client, without disclosing to the client in5626
writing before the completion of the transaction the capacity in5627
which the investment adviser or investment adviser representative5628
is acting and obtaining the consent of the client to the5629
transaction. Division (M)(1)(c) of this section does not apply to5630
any investment adviser registered with the securities and exchange5631
commission under section 203 of the "Investment Advisers Act of5632
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a5633
licensed dealer or salesperson if the licensed dealer or5634
salesperson is not acting as an investment adviser or investment5635
adviser representative in relation to the transaction.5636

       (d) Engage in any act, practice, or course of business that5637
is fraudulent, deceptive, or manipulative. The division of5638
securities may adopt rules reasonably designed to prevent such5639
acts, practices, or courses of business that are fraudulent,5640
deceptive, or manipulative.5641

       (2) No investment adviser or investment adviser5642
representative licensed or required to be licensed under this5643
chapter shall take or have custody of any securities or funds of5644
any person, except as provided in rules adopted by the division.5645

       (3) In the solicitation of clients or prospective clients, no5646
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 the5653
purchase or sale of securities for the purpose of rendering the5654
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 and, investment adviser representatives, and state 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 3105.815685
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 to5688
receive one or more payments from a benefit or lump sum payment5689
under an order issued under section 3105.171 or 3105.65 of the5690
Revised Code that is in compliance with sections 3105.81 to5691
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 a5694
survivor benefit, that has been or may be granted to a participant5695
under sections 742.01 to 742.61 or Chapter 145., 3307., 3309., or5696
5505. of the Revised Code or any payment that is to be made under5697
a contract a participant has entered into for the purposes of an5698
alternative retirement plan. "Benefit" also includes all amounts5699
received or to be received under a plan of payment elected under5700
division (B)(3) of section 145.46, division (B) of section5701
3307.60, or division (B)(3) of section 3309.46 of the Revised5702
Code.5703

       (C) "Lump sum payment" means a payment of accumulated5704
contributions standing to a participant's credit under sections5705
742.01 to 742.61 or Chapter 145., 3307., 3309., or 5505. of the5706
Revised Code or pursuant to a contract a participant has entered5707
into for the purposes of an alternative retirement plan and any5708
other payment made or that may be made to a participant under5709
those sections or chapters on withdrawal of a participant's5710
contributions. "Lump sum payment" includes a lump sum payment5711
under section 145.384, 742.26, 3307.352, or 3309.344 of the5712
Revised Code.5713

       (D) "Participant" means a member, contributor, retirant, or5714
disability benefit recipient who is or will be entitled to a5715
benefit or lump sum payment under sections 742.01 to 742.61 or5716
Chapter 145., 3307., 3309., or 5505. of the Revised Code or an5717
academic or administrative employee who elects to participate in5718
an alternative retirement plan under Chapter 3305. of the Revised5719
Code.5720

       (E) "Personal history record" has the same meaning as in5721
sectionsections 145.27, 742.41, 3305.20, 3307.20, 3309.22, and 5722
5505.04 of the Revised Code.5723

       (F) "Public retirement program" means the public employees5724
retirement system, Ohio police and fire pension fund, school5725
employees retirement system, state teachers retirement system,5726
state highway patrol retirement system, or an entity providing an5727
alternative retirement plan under Chapter 3305. of the Revised5728
Code.5729

       Sec. 3305.01.  As used in this chapter:5730

       (A) "Public institution of higher education" means a state5731
university as defined in section 3345.011 of the Revised Code, the5732
medical college of Ohio at Toledo, the northeastern Ohio5733
universities college of medicine, or a university branch,5734
technical college, state community college, community college, or5735
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 employees5738
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 system5741
created under Chapter 3309. of the Revised Code.5742

       (C) "Academic or administrativeEligible employee" means any5743
person employed as a full-time employee not receiving any benefit, 5744
allowance, or other payment granted on the employee's account from 5745
a state retirement system who meets one of the following 5746
requirements:5747

       (1) The employee is a member of the faculty of a public5748
institution of higher education.5749

       (2) The employee is a member of the administrative staff of a 5750
public institution of higher education serving in a position in5751
the unclassified civil service pursuant to section 124.11 of the5752
Revised Code.5753

       (3) If section 124.11 of the Revised Code does not apply to5754
the public institution of higher education, the employee is a5755
member of the administrative staff of a public institution of5756
higher education serving in a position comparable to a position in5757
the unclassified civil serviceof a public institution of higher 5758
education.5759

       In all cases of doubt, the board of trustees of the public5760
institution of higher education shall determine whether any person5761
is an academic or administrativeeligible employee for purposes of 5762
this chapter, and the board's decision shall be final.5763

       (D) "Electing employee" means any academic or administrative5764
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 eligible5767
employee who is required to participate in an alternative 5768
retirement plan pursuant to division (E)(C)(4) of section 3305.05 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 Chapter5778
3307. of the Revised Code had the employee not made an election5779
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 Chapter5783
3309. of the Revised Code had the employee not made an election5784
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 section5788
3305.03 of the Revised Code as a provider of investment options5789
for an alternative retirement plan.5790

       Sec. 3305.02.  An alternative retirement program is hereby5791
established in accordance with this chapter for the purpose of5792
providing to academic or administrativeeligible employees the 5793
opportunity of participating in an alternative retirement plan as 5794
an alternative to participating in a state retirement system. The5795
employer is the sponsor of each alternative retirement plan5796
offered under this chapter.5797

       Each alternative retirement plan offered under this program5798
to academic or administrative employees electing to participate5799
shall be a defined contribution plan qualified under section 4015800
(a) of the Internal Revenue Code that provides retirement and5801
death benefits through investment options. The options shall be5802
offered to electing employees pursuant to group or individual5803
contracts, and certificates issued under group contracts, and may5804
include life insurance, annuities, variable annuities, regulated5805
investment trusts, pooled investment funds, or other forms of5806
investment, at the option of each electing employee.5807

       Notwithstanding this chapter, any retirement plan established5808
by a public institution of higher education prior to March 31,5809
1997, as an alternative to participating in any state retirement5810
system may continue in effect and be modified without regard to5811
this chapter for all employees at the public institution eligible5812
to participate in the plan.5813

       Sec. 3305.03.  (A) The department of insurance shall5814
designate three or more entities to provide investment options5815
under alternative retirement plans established by public5816
institutions of higher education in accordance with this chapter. 5817
An entity shall be designated a provider under this section if the5818
entity meets both of the following requirements:5819

       (1) It is authorized to conduct business in this state with5820
regard to the investment options to be offered under an5821
alternative retirement plan;5822

       (2) It provides the same or similar investment options to be5823
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, the5826
department of insurance shall consider all of the following:5827

       (1) The experience of the provider in providing investment5828
options under alternative retirement programs in other states;5829

       (2) The potential effectiveness of the provider in recruiting 5830
academic or administrativeeligible employees to enter into5831
contracts and in retaining those contracts;5832

       (3) The nature and extent of the rights and benefits to be5833
provided under the investment options;5834

       (4) The relationship between the rights and benefits under5835
the investment options and the amount of the contributions made5836
under those options;5837

       (5) The suitability of the rights and benefits under the 5838
investment options to the needs and interests of academic or5839
administrativeeligible employees;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 review5844
each provider designated under division (A) of this section and5845
the investment options being offered to ensure that the5846
requirements and purposes of this chapter are being met. If the5847
department finds that the provider is not in compliance with any5848
requirement of this chapter or the provider is not satisfactorily5849
meeting the purposes of this chapter, the department may rescind5850
the provider's designation.5851

       (D) Notwithstanding sections 125.01 to 125.11 of the Revised5852
Code, designation of a provider or the execution of any contract5853
under this chapter is not subject to competitive bidding under5854
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 public5862
institution of higher education.5863

       (2) The employee was a member of the administrative staff of5864
a public institution of higher education serving in a position in5865
the unclassified civil service pursuant to section 124.11 of the5866
Revised Code.5867

       (3) If section 124.11 of the Revised Code did not apply to5868
the public institution of higher education, the employee was a5869
member of the administrative staff of a public institution of5870
higher education serving in a position comparable to a position in5871
the unclassified civil service.5872

       In all cases of doubt, the board of trustees of the public5873
institution of higher education shall determine whether any person5874
is an academic or administrative employee for purposes of this5875
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

       Sec. 3305.05.        Sec. 3305.051.  (A) This section applies only to 5950
elections made prior to the effective date of this amendment.5951

       (B) A person whose employment as an academic or5952
administrative employee of a public institution of higher5953
education commencescommenced after the initial date on which the 5954
board of trustees of the public institution adoptsadopted an 5955
alternative retirement plan may, not later than one hundred twenty 5956
days after the starting date of employment, make an election to5957
participate in an alternative retirement plan available at the5958
public institution. If no election to participate in an5959
alternative retirement plan is made by the end of one hundred5960
twenty days after the person's starting date of employment, the5961
person shall be deemed to have elected participation in the state5962
retirement system that applies to the person's employment.5963

       An election made under this division or division (B)(C) of 5964
this section shall be irrevocable while the electing employee is5965
employed by that public institution.5966

       A person who makes an election to participate in an5967
alternative retirement plan shall be forever barred from claiming5968
or purchasing service credit under any state retirement system for5969
the period of that person's employment during which the election5970
is in effect. If a person terminates employment at one public5971
institution of higher education and subsequently is employed by 5972
another public institution of higher education in a position for5973
which an alternative retirement plan is available under this5974
chapter, the person may make another election under this division.5975
Each public institution of higher education employing a person5976
eligible to make an election under this division shall notify,5977
within ten days of the person's employment, the state retirement5978
system that applies to that person's employment in the manner5979
specified by that state retirement system, which notice shall5980
include the new employee's name and address.5981

       (B)(C)(1) Not later than one hundred twenty days after the 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 have5989
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 or5992
school employees retirement system who is an academic or5993
administrative employee of the public institution is eligible to5994
make an election if, on April 1, 1998, the member had less than5995
five years of service credit in the retirement system in which the 5996
member is making contributions and the public institution of5997
higher education at which the member is employed adopted an5998
alternative retirement plan after December 8, 1998, but before5999
April 1, 1999.6000

       (b) A member of the state teachers retirement system who is6001
an academic or administrative employee of a public institution6002
that establishes an alternative retirement plan is eligible to6003
make an election if the member has less than five years of service6004
credit in the state teachers retirement system on the thirtieth6005
day of June immediately preceding the date the plan is adopted.6006

       (C) Each academic or administrative employee shall make an6007
(D) An election under division (A)(B) or (B)(C) of this section 6008
shall be in writing and submit the electionsubmitted to the 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

       (D)(E)(1) Each election made under division (A)(B) of this6015
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 employees6018
retirement system or school employees retirement system, an6019
election made under division (B)(C) of this section shall be6020
effective as of April 1, 1998. In the case of a member of the6021
state teachers retirement system, an election shall be effective6022
as of the date described in division (B)(C)(2)(b) of this section.6023

       (E)(F) If an individual makes an election under division 6024
(A)(B) or (B)(C) of this section, the election shall apply to the6025
individual's employment in all positions at a public institution6026
of higher education, unless the individual terminates employment6027
at the public institution and does not return to employment in any6028
position at that public institution prior to one year after the6029
date of termination.6030

       If an individual is eligible to make an election under6031
division (A)(B) or (B)(C) of this section for employment at a 6032
public institution and does not make the election, the individual 6033
shall not be permitted to make an election for employment in any6034
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 any6037
position at the public institution prior to one year after the6038
date of termination.6039

       (F) The board of trustees of a public institution of higher6040
education shall permit an electing employee to do all of the6041
following:6042

       (1) Select, from among the providers that have entered into a 6043
contract with the public institution of higher education under6044
section 3305.04 of the Revised Code, the provider of an investment6045
option for that employee;6046

       (2) Except as permitted under division (F)(3) of this6047
section, contract with only one provider in any plan year;6048

       (3) Change the provider selected under division (F)(1) of6049
this section at the following times:6050

       (a) Once during the first payroll period in any plan year;6051

       (b) Any time the provider that the employee selected ceases6052
to be designated under division (C) of section 3305.03 of the6053
Revised Code.6054

       (G) If under division (F)(3) of this section, an employee6055
changes providers, the provider shall transfer the employee's6056
account balance to the new provider.6057

       Sec. 3305.051.        Sec. 3305.052. (A) The state retirement system that 6058
covers the position held by an employee of a public institution of 6059
higher education who makes an election under division (A)(B)(2) or 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 the6071
retirement system by or on behalf of that employee for the period 6072
beginning on the employee's starting day of employment and ending6073
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
(B)(C)(2)(a) or (b) of section 3305.053305.051 of the Revised 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 under6122
section 3305.04 of the Revised Code, the provider of an investment6123
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 this6127
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 an6143
amount, which shall be a certain percentage of the employee's6144
compensation, to the provider of the investment option the6145
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 three6149
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 an6153
electing employee shall contribute an amount, which shall be a6154
certain percentage of the employee's compensation, to the provider 6155
of the investment option the employee has selected. This6156
percentage shall be determined by the board of trustees of the6157
public institutionequal to the percentage that the public 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 the6164
electing employee pursuant to division (A) of this section and on6165
the electing employee's behalf pursuant to division (B) of this6166
section be less than the amount necessary to qualify the plan as a6167
state retirement system pursuant to Internal Revenue Code6168
3121(B)(7) and the regulations adopted thereunder.6169

       (2) The full amount of the electing employee's contribution6170
under division (A) of this section and the full amount of the6171
employer's contribution made on behalf of that employee under6172
division (B) of this section shall be paid to the appropriate6173
provider for application to the electing employee's investment6174
option.6175

       (D) Each public institution of higher education employing an6176
electing employee shall contribute on behalf of that employee to6177
the state retirement system that otherwise applies to the electing6178
employee's position a percentage of the electing employee's6179
compensation to mitigate any negative financial impact of the6180
alternative retirement program on the state retirement system. The6181
percentage shall be six per cent, except that the percentage may6182
be adjusted by the Ohio retirement study council to reflect the6183
determinations made by actuarial studies conducted under section6184
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 shall6189
continue in accordance with this division until the occurrence of6190
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 pursuant6193
to section 3305.05 or 3305.051 of the Revised Code, until the6194
unfunded actuarial accrued liability for all benefits, except6195
health care benefits provided under section 145.325 or 145.58 of6196
the Revised Code and benefit increases provided after March 31,6197
1997, is fully amortized, as determined by the annual actuarial6198
valuation prepared under section 145.22 of the Revised Code;6199

       (2) If the electing employee would be subject to Chapter6200
3307. of the Revised Code had the employee not made an election6201
pursuant to section 3305.05 or 3305.051 of the Revised Code, until 6202
the unfunded actuarial accrued liability for all benefits, except6203
health care benefits provided under section 3307.39 or 3307.61 of6204
the Revised Code and benefit increases provided after March 31,6205
1997, is fully amortized, as determined by the annual actuarial6206
valuation prepared under section 3307.51 of the Revised Code;6207

       (3) If the electing employee would be subject to Chapter6208
3309. of the Revised Code had the employee not made an election6209
pursuant to section 3305.05 or 3305.051 of the Revised Code, until 6210
the unfunded actuarial accrued liability for all benefits, except6211
health care benefits provided under section 3309.375 or 3309.69 of6212
the Revised Code and benefit increases provided after March 31,6213
1997, is fully amortized, as determined by the annual actuarial6214
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 state6220
or by any public institution of higher education under any6221
alternative retirement plan elected pursuant to this chapter.6222

       (B)(1) Except as provided under division (B)(2) of this6223
section and sections 3305.08 and 3305.09 of the Revised Code,6224
benefits shall be paid to an electing employee or the employee's6225
beneficiaries in accordance with the alternative retirement plan6226
adopted by the public institution of higher education at which the6227
employee is employed.6228

       (2) A benefit or payment shall not be paid under an6229
investment option prior to the time an electing employee dies,6230
terminates employment with the public institution of higher6231
education, or, if provided under the alternative retirement plan6232
or investment option, becomes disabled, except that the provider6233
of the investment option shall transfer the employee's account6234
balance to another provider as provided under division (G) of6235
section 3305.053305.053 of the Revised Code.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 under6239
Chapter 3314. of the Revised Code, college, university,6240
institution, or other agency within the state by which a teacher6241
is employed and paid.6242

       (B) "Teacher" means all of the following:6243

       (1) Any person paid from public funds and employed in the6244
public schools of the state under any type of contract described6245
in section 3319.08 of the Revised Code in a position for which the6246
person is required to have a license issued pursuant to sections6247
3319.22 to 3319.31 of the Revised Code;6248

       (2) Any person employed as a teacher by a community school6249
pursuant to Chapter 3314. of the Revised Code;6250

       (3) Any person having a license issued pursuant to sections6251
3319.22 to 3319.31 of the Revised Code and employed in a public6252
school in this state in an educational position, as determined by6253
the state board of education, under programs provided for by6254
federal acts or regulations and financed in whole or in part from6255
federal funds, but for which no licensure requirements for the6256
position can be made under the provisions of such federal acts or6257
regulations;6258

       (4) Any other teacher or faculty member employed in any6259
school, college, university, institution, or other agency wholly6260
controlled and managed, and supported in whole or in part, by the6261
state or any political subdivision thereof, including Central6262
state university, Cleveland state university, the university of6263
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 board6267
shall determine whether any person is a teacher, and its decision6268
shall be final.6269

       "Teacher" does not include any academic or administrative6270
eligible employee of a public institution of higher education, as 6271
defined in section 3305.01 of the Revised Code, who participates6272
elects to participate in an alternative retirement plan6273
established under Chapter 3305. of the Revised Code.6274

       (C) "Member" means any person included in the membership of6275
the state teachers retirement system, which shall consist of all6276
teachers and contributors as defined in divisions (B) and (D) of6277
this section and all disability benefit recipients, as defined in6278
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 while6281
employed part-time by a school, college, or university at which6282
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 3307.356286
of the Revised Code, or a superannuate;6287

       (4) An individual employed in a program established pursuant6288
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 296289
U.S.C.A. 1501.6290

       (D) "Contributor" means any person who has an account in the6291
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 by6294
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 plan6298
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 an6304
employer, as determined by the employer rate, including the normal6305
and deficiency rates, contributions, and funds wherever used in6306
this chapter.6307

       (I) "Five years of service credit" means employment covered6308
under this chapter and employment covered under a former6309
retirement plan operated, recognized, or endorsed by a college,6310
institute, university, or political subdivision of this state6311
prior to coverage under this chapter.6312

       (J) "Actuary" means the actuarial consultant to the state6313
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 with6319
respect to the management of the system, or with respect to the6320
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 the6324
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 by6327
reason of the teacher's employment, including compensation paid6328
pursuant to a supplemental contract. The salary, wages, and other6329
earnings shall be determined prior to determination of the amount6330
required to be contributed to the teachers' savings fund or6331
defined contribution fund under section 3307.26 of the Revised6332
Code and without regard to whether any of the salary, wages, or6333
other earnings are treated as deferred income for federal income6334
tax purposes.6335

       (2) Compensation does not include any of the following:6336

       (a) Payments for accrued but unused sick leave or personal6337
leave, including payments made under a plan established pursuant6338
to section 124.39 of the Revised Code or any other plan6339
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 Revised6342
Code or a plan established by the employer;6343

       (c) Payments made for vacation pay covering concurrent6344
periods for which other salary, compensation, or benefits under6345
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 the6349
teacher's family, or amounts paid by the employer to the teacher6350
in lieu of providing the insurance;6351

       (e) Incidental benefits, including lodging, food, laundry,6352
parking, or services furnished by the employer, use of the6353
employer's property or equipment, and reimbursement for6354
job-related expenses authorized by the employer, including moving6355
and travel expenses and expenses related to professional6356
development;6357

       (f) Payments made by the employer in exchange for a member's6358
waiver of a right to receive any payment, amount, or benefit6359
described in division (L)(2) of this section;6360

       (g) Payments by the employer for services not actually6361
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 a6366
school district board of education in a position that requires a6367
license designated for teaching and not designated for being an6368
administrator issued under section 3319.22 of the Revised Code6369
that is paid in accordance with uniform criteria applicable to all6370
members employed by the board in positions requiring the licenses;6371

       (ii) A retroactive increase paid to a member employed by a6372
school district board of education in a position that requires a6373
license designated for being an administrator issued under section6374
3319.22 of the Revised Code that is paid in accordance with6375
uniform criteria applicable to all members employed by the board6376
in positions requiring the licenses;6377

       (iii) A retroactive increase paid to a member employed by a6378
school district board of education as a superintendent that is6379
also paid as described in division (L)(2)(h)(i) of this section;6380

       (iv) A retroactive increase paid to a member employed by an6381
employer other than a school district board of education in6382
accordance with uniform criteria applicable to all members6383
employed by the employer.6384

       (i) Payments made to or on behalf of a teacher that are in6385
excess of the annual compensation that may be taken into account6386
by the retirement system under division (a)(17) of section 401 of6387
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 establishes6389
membership before July 1, 1996, the annual compensation that may6390
be taken into account by the retirement system shall be determined6391
under division (d)(3) of section 13212 of the "Omnibus Budget6392
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.6393

       (j) Payments made under division (B), (C), or (E) of section6394
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill6395
No. 3 of the 119th general assembly, Section 3 of Amended6396
Substitute Senate Bill No. 164 of the 124th general assembly, or6397
Amended Substitute House Bill No. 405 of the 124th general6398
assembly;6399

       (k) Anything of value received by the teacher that is based6400
on or attributable to retirement or an agreement to retire.6401

       (3) The retirement board shall determine by rule both of the6402
following:6403

       (a) Whether particular forms of earnings are included in any6404
of the categories enumerated in this division;6405

       (b) Whether any form of earnings not enumerated in this6406
division is to be included in compensation.6407

       Decisions of the board made under this division shall be6408
final.6409

       (M) "Superannuate" means both of the following:6410

       (1) A former teacher receiving from the system a retirement6411
allowance under section 3307.58 or 3307.59 of the Revised Code;6412

       (2) A former teacher receiving a benefit from the system6413
under a plan established under section 3307.81 of the Revised6414
Code, except that "superannuate" does not include a former teacher6415
who is receiving a benefit based on disability under a plan6416
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 be6428
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 by6434
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 shall6553
consist of the following nine members:6554

       (A) The superintendent of public instruction;or a designee 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) The auditor of state;One member, known as the treasurer 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) The attorney general;Two members, known as the 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 teachercontributing members, who 6613
shall be members of the state teachers retirement system;6614

       (E) ATwo former membermembers of the system, known as the6615
retired teacher membermembers, who shall be a superannuate and6616
superannuates who isare not otherwise employed in a position6617
positions requiring the retired teacher memberthem to make 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, one6638
teachercontributing member, as defined in division (D) of section 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 teachercontributing members in May, 1978, and 6642
in the annual election of each fourth year thereafter, two teacher6643
contributing members shall be elected to the board. Elected 6644
teachercontributing members shall begin their respective terms of 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 membermembers of the board, as 6648
defined in division (E) of section 3307.05 of the Revised Code, 6649
shall be elected for a term of four years, except that the initial 6650
retired teacher member shall be elected for a term of three years. 6651
The retired teacher membermembers shall be elected to the board 6652
at the annual election for teachercontributing members of the 6653
board, as provided in division (A) of this section, in the year in 6654
which the term of the current retired teacher membermembers would 6655
expire. The retired teacher membermembers shall begin his term6656
their respective terms of office on the first day of September 6657
following histheir election.6658

       No teachercontributing member of the board who retires while 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 any6663
elected member of the board, the remaining members of the board6664
shall elect a successor member who. On certification of the 6665
election results in accordance with rules adopted under section 6666
3307.075 of the Revised Code the successor member shall hold 6667
office for the remainder of his predecessor's termuntil the next 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 histhe member's predecessor in office. 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 hethe member was elected, or if such a member fails to 6678
attend the meetings of the board for four months or longer,6679
without being excused, histhe member's position on the board6680
shall be considered vacant, and a successor member shall be chosen6681
elected, under division (C) of this section, for the remainder of 6682
histhe unexpired term.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 teachercontributing member of 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 of6787
Ohio is eligible for election as thea retired teacher member of 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
teachercontributing members and the retired teacher member6803
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, teachercontributing members or retired teacher 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 3307.076818
of the Revised Code, the state teachers retirement board is not6819
required to hold an election for a position on the board as a6820
teachercontributing member or retired teacher member if only one 6821
candidate has been nominated for the position by petition in 6822
accordance with section 3307.07 of the Revised Code. The candidate6823
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 teachercontributing members 7106
shall be given time off from their employment to attend any such 7107
meeting. The employer of a teachercontributing member shall not 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 teachercontributing member's absence from 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 teachercontributing member paid for the period 7115
of an absence from employment to attend a board meeting, shall be7116
annually transferred from the expense fund and forwarded to the 7117
employer of the teachercontributing member.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 shall7131
elect from its membership, a chairperson and a vice-chairperson. 7132
The board shall employ an executive director who shall serve as7133
secretary, and shall employ other persons necessary to operate the 7134
system and to fulfill the board's duties and responsibilities7135
under Chapter 3307. of the Revised Code. The7136

       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 board7146
member of the state teachers retirement system shall itemize all7147
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 other7152
expenditures authorized by this chapter.7153

       Sec. 3307.15.  (A) The members of the state teachers7154
retirement board shall be the trustees of the funds created by7155
section 3307.14 of the Revised Code. The board shall have full7156
power to invest the funds. The board and other fiduciaries shall7157
discharge their duties with respect to the funds solely in the7158
interest of the participants and beneficiaries; for the exclusive7159
purpose of providing benefits to participants and their7160
beneficiaries and defraying reasonable expenses of administering7161
the system; with care, skill, prudence, and diligence under the7162
circumstances then prevailing that a prudent person acting in a7163
like capacity and familiar with these matters would use in the7164
conduct of an enterprise of a like character and with like aims;7165
and by diversifying the investments of the system so as to7166
minimize the risk of large losses, unless under the circumstances7167
it is clearly prudent not to do so.7168

       To facilitate investment of the funds, the board may7169
establish a partnership, trust, limited liability company,7170
corporation, including a corporation exempt from taxation under7171
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as7172
amended, or any other legal entity authorized to transact business7173
in this state.7174

       (B) In exercising its fiduciary responsibility with respect7175
to the investment of the funds, it shall be the intent of the7176
board to give consideration to investments that enhance the7177
general welfare of the state and its citizens where the7178
investments offer quality, return, and safety comparable to other7179
investments currently available to the board. In fulfilling this7180
intent, equal consideration shall also be given to investments7181
otherwise qualifying under this section that involve minority7182
owned and controlled firms and firms owned and controlled by7183
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 investment7186
program that include asset allocation targets and ranges, risk7187
factors, asset class benchmarks, time horizons, total return7188
objectives, and performance evaluation guidelines. In adopting7189
policies and criteria for the selection of agents with whom the7190
board may contract for the administration of the funds, the board7191
shall comply with sections 3307.152 and 3307.154 of the Revised 7192
Code and shall also give equal consideration to minority owned and7193
controlled firms, firms owned and controlled by women, and7194
ventures involving minority owned and controlled firms and firms7195
owned and controlled by women that otherwise meet the policies and7196
criteria established by the board. Amendments and additions to the7197
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 copies7200
available to interested parties.7201

       When reporting on the performance of investments, the board7202
shall comply with the performance presentation standards7203
established by the association for investment management and7204
research.7205

       (C) All bonds, notes, certificates, stocks, or other7206
evidences of investments purchased by the board shall be delivered7207
to the treasurer of state, who is hereby designated as custodian7208
thereof, or to the treasurer of state's authorized agent, and the7209
treasurer of state or the agent shall collect the principal,7210
interest, dividends, and distributions that become due and payable7211
and place them when so collected into the custodial funds.7212
Evidences of title of the investments may be deposited by the7213
treasurer of state for safekeeping with an authorized agent,7214
selected by the treasurer of state, who is a qualified trustee7215
under section 135.18 of the Revised Code. The treasurer of state7216
shall pay for the investments purchased by the board on receipt of7217
written or electronic instructions from the board or the board's7218
designated agent authorizing the purchase and pending receipt of7219
the evidence of title of the investment by the treasurer of state7220
or the treasurer of state's authorized agent. The board may sell7221
investments held by the board, and the treasurer of state or the7222
treasurer of state's authorized agent shall accept payment from7223
the purchaser and deliver evidence of title of the investment to7224
the purchaser on receipt of written or electronic instructions7225
from the board or the board's designated agent authorizing the7226
sale, and pending receipt of the moneys for the investments. The7227
amount received shall be placed into the custodial funds. The7228
board and the treasurer of state may enter into agreements to7229
establish procedures for the purchase and sale of investments7230
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 the7234
board shall include the fair value, as of the statement date, of7235
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 a7368
member, former member, contributor, former contributor, retirant,7369
or beneficiary that includes the address, telephone number, social7370
security number, record of contributions, correspondence with the7371
state teachers retirement system, or other information the board7372
determines to be confidential.7373

       (2) "Retirant" has the same meaning as in section 3307.50 of7374
the Revised Code.7375

       (B) The records of the board shall be open to public7376
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, the7382
amount of a monthly allowance or benefit paid to the individual.7383

       (C) All medical reports and recommendations under sections7384
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged,7385
except that copies of such medical reports or recommendations7386
shall be made available to the personal physician, attorney, or7387
authorized agent of the individual concerned upon written release7388
received from the individual or the individual's agent, or, when7389
necessary for the proper administration of the fund, to the board7390
assigned physician.7391

       (D) Any person who is a member or contributor of the system7392
shall be furnished, on written request, with a statement of the7393
amount to the credit of the person's account. The board need not7394
answer more than one request of a person in any one year.7395

       (E) Notwithstanding the exceptions to public inspection in7396
division (B) of this section, the board may furnish the following7397
information:7398

       (1) If a member, former member, retirant, contributor, or7399
former contributor is subject to an order issued under section7400
2907.15 of the Revised Code or is convicted of or pleads guilty to7401
a violation of section 2921.41 of the Revised Code, on written7402
request of a prosecutor as defined in section 2935.01 of the7403
Revised Code, the board shall furnish to the prosecutor the7404
information requested from the individual's personal history7405
record.7406

       (2) Pursuant to a court or administrative order issued under7407
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the7408
Revised Code, the board shall furnish to a court or child support7409
enforcement agency the information required under that section.7410

       (3) At the written request of any person, the board shall7411
provide to the person a list of the names and addresses of7412
members, former members, retirants, contributors, former7413
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 security7417
numbers of recipients of public assistance pursuant to section7418
5101.181 of the Revised Code, the board shall inform the auditor7419
of state of the name, current or most recent employer address, and7420
social security number of each member whose name and social7421
security number are the same as that of a person whose name or7422
social security number was submitted by the director. The board7423
and its employees shall, except for purposes of furnishing the7424
auditor of state with information required by this section,7425
preserve the confidentiality of recipients of public assistance in7426
compliance with division (A) of section 5101.181 of the Revised7427
Code.7428

       (5) The system shall comply with orders issued under section7429
3105.87 of the Revised Code.7430

       On the written request of an alternate payee, as defined in7431
section 3105.80 of the Revised Code, the system shall furnish to7432
the alternate payee information on the amount and status of any7433
amounts payable to the alternate payee under an order issued under7434
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 the7443
system's records that is signed by an officer of the retirement7444
system and to which the system's official seal is affixed, or7445
copies of the system's records to which the signature and seal are7446
attached, shall be received as true copies of the system's records7447
in any court or before any officer of this state.7448

       Sec. 3307.25.  (A) An individual who becomes a member of the7449
state teachers retirement system on or after the date on which the7450
state teachers retirement board establishes a plan under section7451
3307.81 of the Revised Code shall make an election under this7452
section. Not later than one hundred eighty days after the date on7453
which employment begins, the individual shall elect to participate7454
either in the plan described in sections 3307.50 to 3307.79 of the7455
Revised Code or one of the plans established under section 3307.817456
of the Revised Code. If a form evidencing an election under this7457
section is not on file with the system at the end of the7458
one-hundred-eighty-day period, the individual is deemed to have7459
elected to participate in the plan described in sections 3307.507460
to 3307.79 of the Revised Code.7461

       (B) An election under this section shall be made in writing7462
on a form provided by the system and filed with the system.7463

       (C) An election under this section shall take effect on the7464
date employment began and, except as provided in section 3307.887465
of the Revised Code, is irrevocable at the end of the election7466
period described in division (A) of this section.7467

       (D) An individual is ineligible to make an election under7468
this section if one of the following applies:7469

       (1) At the time employment begins, the individual is already7470
a member or contributor participating in the plan described in7471
sections 3307.50 to 3307.79 of the Revised Code, a superannuate of7472
the system, or an other system retirant, as defined in section7473
3307.35 of the Revised Code;7474

       (2) An election to participate in an alternative retirement7475
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 and7478
3307.561 of the Revised Code and except as provided in division7479
(B)(2) of this section, a member participating in the plan7480
described in sections 3307.50 to 3307.79 of the Revised Code who7481
ceases to be a teacher for any cause other than death, retirement,7482
receipt of a disability benefit, or current employment in a7483
position in which the member has elected to participate in an7484
alternative retirement plan under section 3305.05 or 3305.051 of 7485
the Revised Code, upon application, shall be paid the accumulated7486
contributions standing to the credit of the member's individual7487
account in the teachers' savings fund plus an amount calculated in7488
accordance with section 3307.563 of the Revised Code. If the7489
member or the member's legal representative cannot be found within7490
ten years after the member ceased making contributions pursuant to7491
section 3307.26 of the Revised Code, the accumulated contributions7492
may be transferred to the guarantee fund and thereafter paid to7493
the member, to the member's beneficiaries, or to the member's7494
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 eligible7497
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 spouse7500
consents to the payment of the member's accumulated contributions.7501
Consent shall be valid only if it is signed and witnessed by a7502
notary public. If the statement is not submitted under this7503
division, the application shall be considered an application for7504
service retirement and shall be subject to division (G)(1) of7505
section 3307.60 of the Revised Code.7506

       The state teachers retirement board may waive the requirement7507
of consent if the spouse is incapacitated or cannot be located, or7508
for any other reason specified by the board. Consent or waiver is7509
effective only with regard to the spouse who is the subject of the7510
consent or waiver.7511

       (B) This division applies to any member who is employed in a7512
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 under7519
section 3305.05 or 3305.051 of the Revised Code, pay, in 7520
accordance with section 3305.0513305.052 of the Revised Code, the 7521
amount described in that section to the appropriate provider;7522

       (2) If a member has accumulated contributions, in addition to7523
those subject to division (B)(1) of this section, standing to the7524
credit of a member's individual account and is not otherwise in a7525
position in which the member is considered a teacher for the7526
purposes of that position, pay, to the provider the member7527
selected pursuant to section 3305.05 or 3305.051 of the Revised7528
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 under7534
division (B) of this section cancels the member's total service7535
credit in the state teachers retirement system. A member whose7536
accumulated contributions are paid to a provider pursuant to7537
division (B) of this section is forever barred from claiming or7538
purchasing service credit under the state teachers retirement7539
system for the period of employment attributable to those7540
contributions.7541

       Sec. 3307.71.  Except as provided in this section or, section7542
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 of7546
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 be7553
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 partial7557
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 be7565
credited as follows:7566

       (A) The amount that equals contributions made pursuant to7567
section 3307.26 of the Revised Code, plus any interest on the7568
contributions paid by the member pursuant to this section, to the7569
member's account in the teachers' savings fund;7570

       (B) The amount that equals the amount paid under section7571
3307.563 of the Revised Code, to the employers trust fund;7572

       (C) The remainder of the payment to restore canceled service7573
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 hereby7584
established for the employees as defined in section 3309.01 of the7585
Revised Code, which shall include the several funds created and7586
placed under the management of the school employees retirement7587
board for the payment of retirement allowances and other benefits7588
provided in Chapter 3309. of the Revised Code. The board may sue7589
and be sued, plead and be impleaded, contract and be contracted7590
with, and do all things necessary to carry out Chapter 3309. of7591
the Revised Code. All of its business shall be transacted, all of7592
its funds invested, all warrants for money drawn and payments7593
made, and all of its cash, securities, and other property shall be7594
held in the name of the board, or in the name of its nominee,7595
provided that nominees are authorized by retirement board7596
resolution for such purposes. The board may take all appropriate7597
action to avoid payment by the system or its members of federal or7598
state income taxes on contributions to the system or amounts7599
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 shall7714
consist of the following seven members:7715

       (A) The auditor of state;One member, known as the treasurer 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) The attorney general;7734

       (C) Four members, known as employee members, who shall be7735
members of the school employees retirement system, and who shall7736
be elected by ballot by the members of the system;7737

       (D) One member(C) Two members, known as the retirant member7738
members, who shall be a former membermembers of the retirement 7739
system who is a resident ofreside in this state and currently 7740
receivingreceive an age and service retirement benefit, a 7741
disability benefit, or benefits under a plan established under 7742
section 3309.81 of the Revised Code. The retirant membermembers7743
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 and the retirant member of the board shall be for 7794
four years each, commencing on the first day of July following the7795
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
Vancancies occurring in7799

       (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 termsterm of employee 7804
members or the retirantan elected member of the board shall be 7805
filled by, the remaining members of the board for the unexpired 7806
termsshall elect a successor member. EmployeeOn certification of 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 the retirant membermembers of the 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 of7821
changed circumstances the retirant member would no longer qualify 7822
for membership on the board as thea retirant member, the office 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 retirant7916
members of the school employees retirement board shall be held7917
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, provided that there shall beand certified in 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 signersmembers each from at least ten counties 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 member7937
positions must be filled, the candidates who receive the highest7938
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 retirement7942
system described in division (D) of section 3309.05 of the Revised7943
Code is eligible for election as thea retirant member of the 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 of7966
the board shall be eligible to become a retirant member of the7967
board for three years after the date of the member's retirement.7968

       Sec. 3309.061.        Sec. 3309.071.  Notwithstanding sections 3309.05, 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 petition7973
in accordance with section 3309.07 of the Revised Code. The7974
candidate shall take office as if elected. The term of office7975
shall be four years beginning on the first day of July following7976
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. FourA majority of the members of the school 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 four or mor ea majority of itsthe members of the 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 shall8257
secure the service of such technical and administrative employees8258
as are necessary for the transaction of the business of the school 8259
employees retirement system. The8260

       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 for8273
retirement under Chapter 3309. of the Revised Code, and shall8274
provide for the payment of all retirement allowances and other8275
benefits and shall make other expenditures required or authorized8276
by this chapter.8277

       Sec. 3309.15.  (A) The members of the school employees8278
retirement board shall be the trustees of the funds created by8279
section 3309.60 of the Revised Code. The board shall have full8280
power to invest the funds. The board and other fiduciaries shall8281
discharge their duties with respect to the funds solely in the8282
interest of the participants and beneficiaries; for the exclusive8283
purpose of providing benefits to participants and their8284
beneficiaries and defraying reasonable expenses of administering8285
the school employees retirement system; with care, skill,8286
prudence, and diligence under the circumstances then prevailing8287
that a prudent person acting in a like capacity and familiar with8288
such matters would use in the conduct of an enterprise of a like8289
character and with like aims; and by diversifying the investments8290
of the system so as to minimize the risk of large losses, unless8291
under the circumstances it is clearly prudent not to do so.8292

       The board may establish a partnership, trust, limited8293
liability company, corporation, including a corporation exempt8294
from taxation under the Internal Revenue Code, 100 Stat. 2085, 268295
U.S.C.A. 1, as amended, or any other legal entity authorized to8296
transact business in this state.8297

       (B) In exercising its fiduciary responsibility with respect8298
to the investment of the funds, it shall be the intent of the8299
board to give consideration to investments that enhance the8300
general welfare of the state and its citizens where the8301
investments offer quality, return, and safety comparable to other8302
investments currently available to the board. In fulfilling this8303
intent, equal consideration shall also be given to investments8304
otherwise qualifying under this section that involve minority8305
owned and controlled firms and firms owned and controlled by8306
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 investment8309
program that include asset allocation targets and ranges, risk8310
factors, asset class benchmarks, time horizons, total return8311
objectives, and performance evaluation guidelines. In adopting8312
policies and criteria for the selection of agents with whom the8313
board may contract for the administration of the funds, the board8314
shall comply with sections 3309.157 and 3309.159 of the Revised 8315
Code and shall also give equal consideration to minority owned and8316
controlled firms, firms owned and controlled by women, and8317
ventures involving minority owned and controlled firms and firms8318
owned and controlled by women that otherwise meet the policies and8319
criteria established by the board. Amendments and additions to the8320
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 copies8323
available to interested parties.8324

       When reporting on the performance of investments, the board8325
shall comply with the performance presentation standards8326
established by the association for investment management and8327
research.8328

       (C) All evidences of title of investments purchased by the8329
board under this section shall be delivered to the treasurer of8330
state, who is hereby designated as custodian thereof, or to the8331
treasurer of state's authorized agent, and the treasurer of state8332
or the agent shall collect principal, interest, dividends, and8333
distributions that become due and payable and place the same when8334
so collected into the custodial funds. Evidences of title of the8335
investments may be deposited by the treasurer of state for8336
safekeeping with an authorized agent, selected by the treasurer of8337
state, who is a qualified trustee under section 135.18 of the8338
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 purchaser8346
and deliver evidence of title of the investment to the purchaser 8347
on receipt of written or electronic instructions from the board or8348
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 employees8356
retirement board.8357

       (E) Any statement of financial position distributed by the8358
board shall include the fair value, as of the statement date, of8359
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, "personal8491
history record" means information maintained by the board on an8492
individual who is a member, former member, contributor, former8493
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 board8496
determines to be confidential.8497

       (2) The records of the board shall be open to public8498
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 other8501
information as provided for in section 3309.28 of the Revised8502
Code;8503

       (b) Any information identifying by name and address the8504
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 the8507
system are privileged except that copies of such medical reports8508
or recommendations shall be made available to the personal8509
physician, attorney, or authorized agent of the individual8510
concerned upon written release received from the individual or the8511
individual's agent, or when necessary for the proper8512
administration of the fund, to the board assigned physician.8513

       (C) Any person who is a contributor of the system shall be8514
furnished, on written request, with a statement of the amount to8515
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 in8518
division (A)(2) of this section, the board may furnish the8519
following information:8520

       (1) If a member, former member, contributor, former8521
contributor, or retirant is subject to an order issued under8522
section 2907.15 of the Revised Code or is convicted of or pleads8523
guilty to a violation of section 2921.41 of the Revised Code, on8524
written request of a prosecutor as defined in section 2935.01 of8525
the Revised Code, the board shall furnish to the prosecutor the8526
information requested from the individual's personal history8527
record.8528

       (2) Pursuant to a court or administrative order issued under8529
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the8530
Revised Code, the board shall furnish to a court or child support8531
enforcement agency the information required under that section.8532

       (3) At the written request of any person, the board shall8533
provide to the person a list of the names and addresses of8534
members, former members, retirants, contributors, former8535
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 security8539
numbers of recipients of public assistance pursuant to section8540
5101.181 of the Revised Code, the board shall inform the auditor8541
of state of the name, current or most recent employer address, and8542
social security number of each contributor whose name and social8543
security number are the same as that of a person whose name or8544
social security number was submitted by the director. The board8545
and its employees shall, except for purposes of furnishing the8546
auditor of state with information required by this section,8547
preserve the confidentiality of recipients of public assistance in8548
compliance with division (A) of section 5101.181 of the Revised8549
Code.8550

       (5) The system shall comply with orders issued under section8551
3105.87 of the Revised Code.8552

       On the written request of an alternate payee, as defined in8553
section 3105.80 of the Revised Code, the system shall furnish to8554
the alternate payee information on the amount and status of any8555
amounts payable to the alternate payee under an order issued under8556
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 the8565
system's records that is signed by an officer of the retirement8566
system and to which the system's official seal is affixed, or8567
copies of the system's records to which the signature and seal are8568
attached, shall be received as true copies of the system's records8569
in any court or before any officer of this state.8570

       Sec. 3309.251.  (A) Except as provided in division (D) of8571
this section, an individual who becomes a member of the school8572
employees retirement system on or after the date on which the8573
school employees retirement board establishes a plan under section8574
3309.81 of the Revised Code shall make an election under this8575
section. Not later than one hundred eighty days after the date on8576
which employment begins, the individual shall elect to participate8577
either in the plan described in sections 3309.18 to 3309.70 of the8578
Revised Code or one of the plans established under section 3309.818579
of the Revised Code. If a form evidencing an election under this8580
section is not on file with the employer at the end of the8581
one-hundred-eighty-day period, the individual is deemed to have8582
elected to participate in the plan described in sections 3309.188583
to 3309.70 of the Revised Code.8584

       (B) An election under this section shall be made in writing8585
on a form provided by the retirement system and filed with the8586
employer's personnel officer. Not later than ten days after8587
receiving the form evidencing the election, the employer shall8588
transmit to the system a copy that includes a statement certifying8589
that it is a true and accurate copy of the original.8590

       (C) An election under this section shall take effect on the8591
date employment began and is irrevocable on receipt by the8592
employer.8593

       (D) An individual is ineligible to make an election under8594
this section if either of the following applies:8595

       (1) At the time employment begins, the individual is already8596
a member or contributor participating in the plan described in8597
sections 3309.18 to 3309.70 of the Revised Code or an SERS8598
retirant, as defined in section 3309.341 of the Revised Code.8599

       (2) An election to participate in an alternative retirement8600
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 this8604
section, a member who elects to become exempt from contribution to8605
the school employees retirement system pursuant to section 3309.238606
of the Revised Code, or ceases to be an employee for any cause8607
other than death, retirement, receipt of a disability benefit, or8608
current employment in a position in which the member has elected8609
to participate in an alternative retirement plan pursuant to8610
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 a8618
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 employee8621
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
3305.0513305.052 of the Revised Code, the amount described in 8627
that section to the appropriate provider;8628

       (2) If a member has accumulated contributions, in addition to8629
those subject to division (B)(1) of this section, standing to the8630
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 member8633
selected pursuant to section 3305.05 or 3305.051 of the Revised8634
Code, the accumulated contributions standing to the credit of the8635
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 under8638
this section cancels the member's total service credit in the8639
school employees retirement system. A member whose accumulated8640
contributions are paid to a provider pursuant to division (B) of8641
this section is forever barred from claiming or purchasing service8642
credit under the school employees retirement system for the period8643
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 and8654
management of the state highway patrol retirement system and the8655
making effective of this chapter are hereby vested in the state8656
highway patrol retirement board. The board may sue and be sued,8657
plead and be impleaded, contract and be contracted with, and do8658
all things necessary to carry out this chapter.8659

       The board shall consist of the auditor of state, the8660
following members:8661

       (a) The superintendent of the state highway patrol, a 8662
retirant-member;8663

       (b) Two retirant members who is a resident ofreside in this 8664
state, and four;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 and8705
vice-chairperson from among its members. The vice-chairperson8706
shall act as chairperson in the absence of the chairperson. A8707
majority of the members of the board shall constitute a quorum and8708
any action taken shall be approved by four or morea majority of 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 the8724
adoption of rules authorized under this chapter, consistent with8725
the provision of section 111.15 of the Revised Code under which8726
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 analysis8734
required by division (B) of section 127.18 of the Revised Code.8735

       (C)(1) Except as provided in division (C)(4) of this section, 8736
the retirant-member of the board shall be elected for a four-year 8737
term by a general election of service and disability retirants 8738
conducted in a manner approved by the board. The term of the 8739
initial retirant-member shall commence in August 1990. A person 8740
who at the time of retirement is an employee-member of the board 8741
is not eligible to become a retirant-member until three years 8742
after such person's retirement date.8743

       (2) Except as provided in division (C)(4) of this section,8744
employee-members of the board shall be elected for terms of four8745
years by a general election of contributing members conducted in a8746
manner approved by the board. The term of office of each8747
employee-member shall commence in August of the year in which such8748
member is elected.8749

       (3) Except as provided in division (C)(4) of this section,8750
any vacancy occurring in the term of the retirant-member or any8751
employee-member of the board shall be filled by an election8752
conducted in the same manner as other retirant-member and8753
employee-member elections. The retirant-member or employee-member8754
elected shall fill the unexpired term.8755

       (4) The state highway patrol retirement board is not required 8756
to hold an election for a position on the board as a8757
retirant-member, employee-member, or vacancy for a retirant-member8758
or employee-member if only one candidate has been nominated for8759
the position or vacancy in the manner approved by the board. The8760
candidate shall take office as if elected. In the case of a8761
retirant-member or employee-member, the term of office shall be8762
four years beginning in August of the year the candidate was8763
nominated. In the case of a vacancy, the candidate shall fill the8764
unexpired term.8765

       (D)(1) As used in this division, "personal history record"8766
means information maintained by the board on an individual who is8767
a member, former member, retirant, or beneficiary that includes8768
the address, telephone number, social security number, record of8769
contributions, correspondence with the system, and other8770
information the board determines to be confidential.8771

       (2) The records of the board shall be open to public8772
inspection, except for the following which shall be excluded: the8773
member's, former member's, retirant's, or beneficiary's personal8774
history record and the amount of a monthly allowance or benefit8775
paid to a retirant, beneficiary, or survivor, except with the8776
written authorization of the individual concerned. All medical8777
reports and recommendations are privileged except that copies of8778
such medical reports or recommendations shall be made available to8779
the individual's personal physician, attorney, or authorized agent8780
upon written release received from such individual or such8781
individual's agent, or when necessary for the proper8782
administration of the fund to the board-assigned physician.8783

       (E)(D) Notwithstanding the exceptions to public inspection in8784
division (D)(C)(2) of this section, the board may furnish the8785
following information:8786

       (1) If a member, former member, or retirant is subject to an8787
order issued under section 2907.15 of the Revised Code or is8788
convicted of or pleads guilty to a violation of section 2921.41 of8789
the Revised Code, on written request of a prosecutor as defined in8790
section 2935.01 of the Revised Code, the board shall furnish to8791
the prosecutor the information requested from the individual's8792
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 a8795
court or child support enforcement agency the information required8796
under those chapters.8797

       (3) At the written request of any nonprofit organization or8798
association providing services to retirement system members,8799
retirants, or beneficiaries, the board shall provide to the8800
organization or association a list of the names and addresses of8801
members, former members, retirants, or beneficiaries if the8802
organization or association agrees to use such information solely8803
in accordance with its stated purpose of providing services to8804
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 security8809
numbers of recipients of public assistance pursuant to section8810
5101.181 of the Revised Code, the board shall inform the auditor8811
of state of the name, current or most recent employer address, and8812
social security number of each member whose name and social8813
security number are the same as those of a person whose name or8814
social security number was submitted by the director. The board8815
and its employees, except for purposes of furnishing the auditor8816
of state with information required by this section, shall preserve8817
the confidentiality of recipients of public assistance in8818
compliance with division (A) of section 5101.181 of the Revised8819
Code.8820

       (5) The system shall comply with orders issued under section8821
3105.87 of the Revised Code.8822

       On the written request of an alternate payee, as defined in8823
section 3105.80 of the Revised Code, the system shall furnish to8824
the alternate payee information on the amount and status of any8825
amounts payable to the alternate payee under an order issued under8826
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

       (F)(E) A statement that contains information obtained from8835
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 is8837
affixed, or copies of the system's records to which the signature8838
and seal are attached, shall be received as true copies of the8839
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 patrol9252
retirement board shall be the trustees of the funds created by9253
section 5505.03 of the Revised Code. The board shall have full9254
power to invest the funds. The board and other fiduciaries shall9255
discharge their duties with respect to the funds solely in the9256
interest of the participants and beneficiaries; for the exclusive9257
purpose of providing benefits to participants and their9258
beneficiaries and defraying reasonable expenses of administering9259
the system; with care, skill, prudence, and diligence under the9260
circumstances then prevailing that a prudent person acting in a9261
like capacity and familiar with these matters would use in the9262
conduct of an enterprise of a like character and with like aims;9263
and by diversifying the investments of the system so as to9264
minimize the risk of large losses, unless under the circumstances9265
it is clearly prudent not to do so.9266

       To facilitate investment of the funds, the board may9267
establish a partnership, trust, limited liability company,9268
corporation, including a corporation exempt from taxation under9269
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as9270
amended, or any other legal entity authorized to transact business9271
in this state.9272

       (B) In exercising its fiduciary responsibility with respect9273
to the investment of the funds, it shall be the intent of the9274
board to give consideration to investments that enhance the9275
general welfare of the state and its citizens where the9276
investments offer quality, return, and safety comparable to other9277
investments currently available to the board. In fulfilling this9278
intent, equal consideration shall be given to investments9279
otherwise qualifying under this section that involve minority9280
owned and controlled firms and firms owned and controlled by9281
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 investment9284
program that include asset allocation targets and ranges, risk9285
factors, asset class benchmarks, time horizons, total return9286
objectives, and performance evaluation guidelines. In adopting9287
policies and criteria for the selection of agents with whom the9288
board may contract for the administration of the funds, the board9289
shall comply with sections 5505.062 and 5505.064 of the Revised 9290
Code and shall also give equal consideration to minority owned and9291
controlled firms, firms owned and controlled by women, and joint9292
ventures involving minority owned and controlled firms and firms9293
owned and controlled by women that otherwise meet the policies and9294
criteria established by the board. Amendments and additions to the9295
policies and criteria shall be adopted in regular meeting. The9296
board shall publish its policies, objectives, and criteria under9297
this provision no less often than annually and shall make copies9298
available to interested parties.9299

       When reporting on the performance of investments, the board9300
shall comply with the performance presentation standards9301
established by the association for investment management and9302
research.9303

       (C) All evidences of title of the investments purchased by9304
the board shall be delivered to the treasurer of state, who is9305
hereby designated as the custodian thereof, or to the treasurer of9306
state's authorized agent. Evidences of title of the investments9307
may be deposited by the treasurer of state for safekeeping with an9308
authorized agent, selected by the treasurer of state, who is a9309
qualified trustee under section 135.18 of the Revised Code. The9310
treasurer of state shall collect the principal, interest,9311
dividends, and distributions that become due and payable and, when9312
collected, shall credit them to the custodial funds.9313

       The treasurer of state shall pay for the investments9314
purchased by the board on receipt of written or electronic9315
instructions from the board or the board's designated agent9316
authorizing the purchase and pending receipt of the evidence of9317
title of the investment by the treasurer of state or the treasurer9318
of state's authorized agent. The board may sell investments held9319
by the board, and the treasurer of state or the treasurer of9320
state's authorized agent shall accept payment from the purchaser9321
and deliver evidence of title of the investment to the purchaser9322
on receipt of written or electronic instructions from the board or9323
the board's designated agent authorizing the sale, and pending9324
receipt of the moneys for the investments. The amount received9325
shall be placed in the custodial funds. The board and the9326
treasurer of state may enter into agreements to establish9327
procedures for the purchase and sale of investments under this9328
division and the custody of the investments.9329

       (D) All of the board's business shall be transacted, all its9330
funds shall be invested, all warrants for money drawn and payments9331
shall be made, and all of its cash, securities, and other property9332
shall be held, in the name of the board or its nominee, provided9333
that nominees are authorized by board resolution for the purpose9334
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 the9338
board shall include the fair value, as of the statement date, of9339
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. The9586

       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 its9604
technical advisor.9605

       (D) The board shall from time to time adopt such mortality9606
and other tables of experience, and such rate or rates of9607
interest, as are required in the proper operation of the9608
retirement system.9609

       (E) The board shall determine by appropriate rules the9610
service to be credited any member in any calendar year.9611

       The board shall perform other functions and adopt rules as9612
required for the proper execution of Chapter 5505. of the Revised9613
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 of9720
the 123rd General Assembly. The General Assembly, applying the9721
principle stated in division (B) of section 1.52 of the Revised9722
Code that amendments are to be harmonized if reasonably capable of9723
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