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

To amend sections 102.02, 102.03, 102.06, 117.10,

1

145.04, 145.05, 145.051, 145.06, 145.09, 145.27,

2

171.01, 171.02, 171.03, 171.04, 742.03, 742.04,

3

742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03,

4

1707.17, 1707.19, 1707.20, 1707.22, 1707.23,

5

1707.25, 1707.261, 1707.39, 1707.431, 1707.44,

6

1707.46, 3307.03, 3307.05, 3307.06, 3307.07,

7

3307.11, 3307.20, 3309.03, 3309.05, 3309.06,

8

3309.07, 3309.09, 3309.14, 3309.22, 5505.04, and

9

5505.07; to amend, for the purpose of adopting new

10

section numbers as indicated in parentheses,

11

sections 145.051 (145.052) and 3309.061

12

(3309.071); to enact new sections 145.051 and

13

3309.061; and sections 109.98, 111.30, 145.041,

14

145.042, 145.053, 145.054, 145.055, 145.057,

15

145.092, 145.093, 145.094, 145.99, 171.06, 171.50,

16

742.031, 742.032, 742.042, 742.043, 742.044,

17

742.046, 742.102, 742.103, 742.104, 742.99,

18

1707.162, 1707.163, 3307.041, 3307.042, 3307.043,

19

3307.051, 3307.052, 3307.061, 3307.072, 3307.073,

20

3307.074, 3307.99, 3309.041, 3309.042, 3309.043,

21

3309.051, 3309.052, 3309.072, 3309.073, 3309.074,

22

3309.99, 5505.041, 5505.042, 5505.043, 5505.044,

23

5505.045, 5505.046, 5505.048, 5505.049, 5505.062,

24

5505.063, 5505.064, 5505.065, 5505.122, and

25

5505.99 of the Revised Code regarding governance

26

of Ohio's five public retirement systems.

27

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

Section 1. That sections 102.02, 102.03, 102.06, 117.10,	28
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02,	29
171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41,	30
1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23,	31
1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03,	32
3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05,	33
3309.06, 3309.07, 3309.09, 3309.14, 3309.22, 5505.04, and 5505.07	34
be amended; sections 145.051 (145.052) and 3309.061 (3309.071) be	35
amended for the purpose of adopting new section numbers as	36
indicated in parentheses; and new sections 145.051 and 3309.061	37
and sections 109.98, 111.30, 145.041, 145.042, 145.053, 145.054,	38
145.055, 145.057, 145.092, 145.093, 145.094, 145.99, 171.06,	39
171.50, 742.031, 742.032, 742.042, 742.043, 742.044, 742.046,	40
742.102, 742.103, 742.104, 742.99, 1707.162, 1707.163, 3307.041,	41
3307.042, 3307.043, 3307.051, 3307.052, 3307.061, 3307.072,	42
3307.073, 3307.074, 3307.99, 3309.041, 3309.042, 3309.043,	43
3309.051, 3309.052, 3309.072, 3309.073, 3309.074, 3309.99,	44
5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 5505.046,	45
5505.048, 5505.049, 5505.062, 5505.063, 5505.064, 5505.065,	46
5505.122, and 5505.99 of the Revised Code be enacted to read as	47
follows:	48

Sec. 102.02.  (A) Except as otherwise provided in division	49
(H) of this section, all of the following shall file with the	50
appropriate ethics commission the disclosure statement described	51
in this division on a form prescribed by the appropriate	52
commission: every person who is elected to or is a candidate for a	53
state, county, or city office, or the office of member of the	54
United States congress, and every person who is appointed to fill	55
a vacancy for an unexpired term in such an elective office; all	56
members of the state board of education; the director, assistant	57
directors, deputy directors, division chiefs, or persons of	58
equivalent rank of any administrative department of the state; the	59
president or other chief administrative officer of every state	60
institution of higher education as defined in section 3345.011 of	61
the Revised Code; the chief executive officer and the members of	62
the board of each state retirement system; each employee of a	63
state retirement board who is a state retirement system investment	64
officer licensed pursuant to section 1707.163 of the Revised Code;	65
the members of the Ohio retirement study council appointed	66
pursuant to division (C) or (D) of section 171.01 of the Revised	67
Code; employees of the Ohio retirement study council, other than	68
employees who perform purely administrative or clerical functions;	69
all members of the board of commissioners on grievances and	70
discipline of the supreme court and the ethics commission created	71
under section 102.05 of the Revised Code; every business manager,	72
treasurer, or superintendent of a city, local, exempted village,	73
joint vocational, or cooperative education school district or an	74
educational service center; every person who is elected to or is a	75
candidate for the office of member of a board of education of a	76
city, local, exempted village, joint vocational, or cooperative	77
education school district or of a governing board of an	78
educational service center that has a total student count of	79
twelve thousand or more as most recently determined by the	80
department of education pursuant to section 3317.03 of the Revised	81
Code; every person who is appointed to the board of education of a	82
municipal school district pursuant to division (B) or (F) of	83
section 3311.71 of the Revised Code; all members of the board of	84
directors of a sanitary district established under Chapter 6115.	85
of the Revised Code and organized wholly for the purpose of	86
providing a water supply for domestic, municipal, and public use	87
that includes two municipal corporations in two counties; every	88
public official or employee who is paid a salary or wage in	89
accordance with schedule C of section 124.15 or schedule E-2 of	90
section 124.152 of the Revised Code; members of the board of	91
trustees and the executive director of the tobacco use prevention	92
and control foundation; members of the board of trustees and the	93
executive director of the southern Ohio agricultural and community	94
development foundation; and every other public official or	95
employee who is designated by the appropriate ethics commission	96
pursuant to division (B) of this section shall file with the	97
appropriate ethics commission on a form prescribed by the	98
commission, a statement disclosing all of the following:.	99

The disclosure statement shall include all of the following:

100

(1) The name of the person filing the statement and each	101
member of the person's immediate family and all names under which	102
the person or members of the person's immediate family do	103
business;	104

(2)(a) Subject to divisions (A)(2)(b) and (c) of this section	105
and except as otherwise provided in section 102.022 of the Revised	106
Code, identification of every source of income, other than income	107
from a legislative agent identified in division (A)(2)(b) of this	108
section, received during the preceding calendar year, in the	109
person's own name or by any other person for the person's use or	110
benefit, by the person filing the statement, and a brief	111
description of the nature of the services for which the income was	112
received. If the person filing the statement is a member of the	113
general assembly, the statement shall identify the amount of every	114
source of income received in accordance with the following ranges	115
of amounts: zero or more, but less than one thousand dollars; one	116
thousand dollars or more, but less than ten thousand dollars; ten	117
thousand dollars or more, but less than twenty-five thousand	118
dollars; twenty-five thousand dollars or more, but less than fifty	119
thousand dollars; fifty thousand dollars or more, but less than	120
one hundred thousand dollars; and one hundred thousand dollars or	121
more. Division (A)(2)(a) of this section shall not be construed to	122
require a person filing the statement who derives income from a	123
business or profession to disclose the individual items of income	124
that constitute the gross income of that business or profession,	125
except for those individual items of income that are attributable	126
to the person's or, if the income is shared with the person, the	127
partner's, solicitation of services or goods or performance,	128
arrangement, or facilitation of services or provision of goods on	129
behalf of the business or profession of clients, including	130
corporate clients, who are legislative agents as defined in	131
section 101.70 of the Revised Code. A person who files the	132
statement under this section shall disclose the identity of and	133
the amount of income received from a person who the public	134
official or employee knows or has reason to know is doing or	135
seeking to do business of any kind with the public official's or	136
employee's agency.	137

(b) If the person filing the statement is a member of the	138
general assembly, the statement shall identify every source of	139
income and the amount of that income that was received from a	140
legislative agent, as defined in section 101.70 of the Revised	141
Code, during the preceding calendar year, in the person's own name	142
or by any other person for the person's use or benefit, by the	143
person filing the statement, and a brief description of the nature	144
of the services for which the income was received. Division	145
(A)(2)(b) of this section requires the disclosure of clients of	146
attorneys or persons licensed under section 4732.12 of the Revised	147
Code, or patients of persons certified under section 4731.14 of	148
the Revised Code, if those clients or patients are legislative	149
agents. Division (A)(2)(b) of this section requires a person	150
filing the statement who derives income from a business or	151
profession to disclose those individual items of income that	152
constitute the gross income of that business or profession that	153
are received from legislative agents.	154

(c) Except as otherwise provided in division (A)(2)(c) of	155
this section, division (A)(2)(a) of this section applies to	156
attorneys, physicians, and other persons who engage in the	157
practice of a profession and who, pursuant to a section of the	158
Revised Code, the common law of this state, a code of ethics	159
applicable to the profession, or otherwise, generally are required	160
not to reveal, disclose, or use confidences of clients, patients,	161
or other recipients of professional services except under	162
specified circumstances or generally are required to maintain	163
those types of confidences as privileged communications except	164
under specified circumstances. Division (A)(2)(a) of this section	165
does not require an attorney, physician, or other professional	166
subject to a confidentiality requirement as described in division	167
(A)(2)(c) of this section to disclose the name, other identity, or	168
address of a client, patient, or other recipient of professional	169
services if the disclosure would threaten the client, patient, or	170
other recipient of professional services, would reveal details of	171
the subject matter for which legal, medical, or professional	172
advice or other services were sought, or would reveal an otherwise	173
privileged communication involving the client, patient, or other	174
recipient of professional services. Division (A)(2)(a) of this	175
section does not require an attorney, physician, or other	176
professional subject to a confidentiality requirement as described	177
in division (A)(2)(c) of this section to disclose in the brief	178
description of the nature of services required by division	179
(A)(2)(a) of this section any information pertaining to specific	180
professional services rendered for a client, patient, or other	181
recipient of professional services that would reveal details of	182
the subject matter for which legal, medical, or professional	183
advice was sought or would reveal an otherwise privileged	184
communication involving the client, patient, or other recipient of	185
professional services.	186

(3) The name of every corporation on file with the secretary	187
of state that is incorporated in this state or holds a certificate	188
of compliance authorizing it to do business in this state, trust,	189
business trust, partnership, or association that transacts	190
business in this state in which the person filing the statement or	191
any other person for the person's use and benefit had during the	192
preceding calendar year an investment of over one thousand dollars	193
at fair market value as of the thirty-first day of December of the	194
preceding calendar year, or the date of disposition, whichever is	195
earlier, or in which the person holds any office or has a	196
fiduciary relationship, and a description of the nature of the	197
investment, office, or relationship. Division (A)(3) of this	198
section does not require disclosure of the name of any bank,	199
savings and loan association, credit union, or building and loan	200
association with which the person filing the statement has a	201
deposit or a withdrawable share account.	202

(4) All fee simple and leasehold interests to which the	203
person filing the statement holds legal title to or a beneficial	204
interest in real property located within the state, excluding the	205
person's residence and property used primarily for personal	206
recreation;	207

(5) The names of all persons residing or transacting business	208
in the state to whom the person filing the statement owes, in the	209
person's own name or in the name of any other person, more than	210
one thousand dollars. Division (A)(5) of this section shall not be	211
construed to require the disclosure of debts owed by the person	212
resulting from the ordinary conduct of a business or profession or	213
debts on the person's residence or real property used primarily	214
for personal recreation, except that the superintendent of	215
financial institutions shall disclose the names of all	216
state-chartered savings and loan associations and of all service	217
corporations subject to regulation under division (E)(2) of	218
section 1151.34 of the Revised Code to whom the superintendent in	219
the superintendent's own name or in the name of any other person	220
owes any money, and that the superintendent and any deputy	221
superintendent of banks shall disclose the names of all	222
state-chartered banks and all bank subsidiary corporations subject	223
to regulation under section 1109.44 of the Revised Code to whom	224
the superintendent or deputy superintendent owes any money.	225

(6) The names of all persons residing or transacting business	226
in the state, other than a depository excluded under division	227
(A)(3) of this section, who owe more than one thousand dollars to	228
the person filing the statement, either in the person's own name	229
or to any person for the person's use or benefit. Division (A)(6)	230
of this section shall not be construed to require the disclosure	231
of clients of attorneys or persons licensed under section 4732.12	232
or 4732.15 of the Revised Code, or patients of persons certified	233
under section 4731.14 of the Revised Code, nor the disclosure of	234
debts owed to the person resulting from the ordinary conduct of a	235
business or profession.	236

(7) Except as otherwise provided in section 102.022 of the	237
Revised Code, the source of each gift of over seventy-five	238
dollars, or of each gift of over twenty-five dollars received by a	239
member of the general assembly from a legislative agent, received	240
by the person in the person's own name or by any other person for	241
the person's use or benefit during the preceding calendar year,	242
except gifts received by will or by virtue of section 2105.06 of	243
the Revised Code, or received from spouses, parents, grandparents,	244
children, grandchildren, siblings, nephews, nieces, uncles, aunts,	245
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,	246
fathers-in-law, mothers-in-law, or any person to whom the person	247
filing the statement stands in loco parentis, or received by way	248
of distribution from any inter vivos or testamentary trust	249
established by a spouse or by an ancestor;	250

(8) Except as otherwise provided in section 102.022 of the	251
Revised Code, identification of the source and amount of every	252
payment of expenses incurred for travel to destinations inside or	253
outside this state that is received by the person in the person's	254
own name or by any other person for the person's use or benefit	255
and that is incurred in connection with the person's official	256
duties, except for expenses for travel to meetings or conventions	257
of a national or state organization to which any state agency,	258
including, but not limited to, any legislative agency or state	259
institution of higher education as defined in section 3345.011 of	260
the Revised Code, pays membership dues, or any political	261
subdivision or any office or agency of a political subdivision	262
pays membership dues;	263

(9) Except as otherwise provided in section 102.022 of the	264
Revised Code, identification of the source of payment of expenses	265
for meals and other food and beverages, other than for meals and	266
other food and beverages provided at a meeting at which the person	267
participated in a panel, seminar, or speaking engagement or at a	268
meeting or convention of a national or state organization to which	269
any state agency, including, but not limited to, any legislative	270
agency or state institution of higher education as defined in	271
section 3345.011 of the Revised Code, pays membership dues, or any	272
political subdivision or any office or agency of a political	273
subdivision pays membership dues, that are incurred in connection	274
with the person's official duties and that exceed one hundred	275
dollars aggregated per calendar year;	276

(10) If the financial disclosure statement is filed by a	277
public official or employee described in division (B)(2) of	278
section 101.73 of the Revised Code or division (B)(2) of section	279
121.63 of the Revised Code who receives a statement from a	280
legislative agent, executive agency lobbyist, or employer that	281
contains the information described in division (F)(2) of section	282
101.73 of the Revised Code or division (G)(2) of section 121.63 of	283
the Revised Code, all of the nondisputed information contained in	284
the statement delivered to that public official or employee by the	285
legislative agent, executive agency lobbyist, or employer under	286
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of	287
the Revised Code. As used in division (A)(10) of this section,	288
"legislative agent," "executive agency lobbyist," and "employer"	289
have the same meanings as in sections 101.70 and 121.60 of the	290
Revised Code.	291

A person may file a statement required by this section in	292
person or by mail. A person who is a candidate for elective office	293
shall file the statement no later than the thirtieth day before	294
the primary, special, or general election at which the candidacy	295
is to be voted on, whichever election occurs soonest, except that	296
a person who is a write-in candidate shall file the statement no	297
later than the twentieth day before the earliest election at which	298
the person's candidacy is to be voted on. A person who holds	299
elective office shall file the statement on or before the	300
fifteenth day of April of each year unless the person is a	301
candidate for office. A person who is appointed to fill a vacancy	302
for an unexpired term in an elective office shall file the	303
statement within fifteen days after the person qualifies for	304
office. Other persons shall file an annual statement on or before	305
the fifteenth day of April or, if appointed or employed after that	306
date, within ninety days after appointment or employment. No	307
person shall be required to file with the appropriate ethics	308
commission more than one statement or pay more than one filing fee	309
for any one calendar year.	310

The appropriate ethics commission, for good cause, may extend	311
for a reasonable time the deadline for filing a statement under	312
this section.	313

A statement filed under this section is subject to public	314
inspection at locations designated by the appropriate ethics	315
commission except as otherwise provided in this section.	316

(B) The Ohio ethics commission, the joint legislative ethics	317
committee, and the board of commissioners on grievances and	318
discipline of the supreme court, using the rule-making procedures	319
of Chapter 119. of the Revised Code, may require any class of	320
public officials or employees under its jurisdiction and not	321
specifically excluded by this section whose positions involve a	322
substantial and material exercise of administrative discretion in	323
the formulation of public policy, expenditure of public funds,	324
enforcement of laws and rules of the state or a county or city, or	325
the execution of other public trusts, to file an annual statement	326
on or before the fifteenth day of April under division (A) of this	327
section. The appropriate ethics commission shall send the public	328
officials or employees written notice of the requirement by the	329
fifteenth day of February of each year the filing is required	330
unless the public official or employee is appointed after that	331
date, in which case the notice shall be sent within thirty days	332
after appointment, and the filing shall be made not later than	333
ninety days after appointment.	334

Except for disclosure statements filed by members of the	335
board of trustees and the executive director of the tobacco use	336
prevention and control foundation and members of the board of	337
trustees and the executive director of the southern Ohio	338
agricultural and community development foundation, disclosure	339
statements filed under this division with the Ohio ethics	340
commission by members of boards, commissions, or bureaus of the	341
state for which no compensation is received other than reasonable	342
and necessary expenses shall be kept confidential. Disclosure	343
statements filed with the Ohio ethics commission under division	344
(A) of this section by business managers, treasurers, and	345
superintendents of city, local, exempted village, joint	346
vocational, or cooperative education school districts or	347
educational service centers shall be kept confidential, except	348
that any person conducting an audit of any such school district or	349
educational service center pursuant to section 115.56 or Chapter	350
117. of the Revised Code may examine the disclosure statement of	351
any business manager, treasurer, or superintendent of that school	352
district or educational service center. The Ohio ethics commission	353
shall examine each disclosure statement required to be kept	354
confidential to determine whether a potential conflict of interest	355
exists for the person who filed the disclosure statement. A	356
potential conflict of interest exists if the private interests of	357
the person, as indicated by the person's disclosure statement,	358
might interfere with the public interests the person is required	359
to serve in the exercise of the person's authority and duties in	360
the person's office or position of employment. If the commission	361
determines that a potential conflict of interest exists, it shall	362
notify the person who filed the disclosure statement and shall	363
make the portions of the disclosure statement that indicate a	364
potential conflict of interest subject to public inspection in the	365
same manner as is provided for other disclosure statements. Any	366
portion of the disclosure statement that the commission determines	367
does not indicate a potential conflict of interest shall be kept	368
confidential by the commission and shall not be made subject to	369
public inspection, except as is necessary for the enforcement of	370
Chapters 102. and 2921. of the Revised Code and except as	371
otherwise provided in this division.	372

(C) No person shall knowingly fail to file, on or before the	373
applicable filing deadline established under this section, a	374
statement that is required by this section.	375

(D) No person shall knowingly file a false statement that is	376
required to be filed under this section.	377

(E)(1) Except as provided in divisions (E)(2) and (3) of this	378
section, the statement required by division (A) or (B) of this	379
section shall be accompanied by a filing fee of forty dollars.	380

(2) The statement required by division (A) of this section	381
shall be accompanied by the following filing fee to be paid by the	382
person who is elected or appointed to, or is a candidate for, any	383
of the following offices:	384

(3) No judge of a court of record or candidate for judge of a	404
court of record, and no referee or magistrate serving a court of	405
record, shall be required to pay the fee required under division	406
(E)(1) or (2) or (F) of this section.	407

(4) For any public official who is appointed to a nonelective	408
office of the state and for any employee who holds a nonelective	409
position in a public agency of the state, the state agency that is	410
the primary employer of the state official or employee shall pay	411
the fee required under division (E)(1) or (F) of this section.	412

(F) If a statement required to be filed under this section is	413
not filed by the date on which it is required to be filed, the	414
appropriate ethics commission shall assess the person required to	415
file the statement a late filing fee of ten dollars for each day	416
the statement is not filed, except that the total amount of the	417
late filing fee shall not exceed two hundred fifty dollars.	418

(G)(1) The appropriate ethics commission other than the Ohio	419
ethics commission shall deposit all fees it receives under	420
divisions (E) and (F) of this section into the general revenue	421
fund of the state.	422

(2) The Ohio ethics commission shall deposit all receipts,	423
including, but not limited to, fees it receives under divisions	424
(E) and (F) of this section and all moneys it receives from	425
settlements under division (G) of section 102.06 of the Revised	426
Code, into the Ohio ethics commission fund, which is hereby	427
created in the state treasury. All moneys credited to the fund	428
shall be used solely for expenses related to the operation and	429
statutory functions of the commission.	430

(H) Division (A) of this section does not apply to a person	431
elected or appointed to the office of precinct, ward, or district	432
committee member under Chapter 3517. of the Revised Code; a	433
presidential elector; a delegate to a national convention; village	434
or township officials and employees; any physician or psychiatrist	435
who is paid a salary or wage in accordance with schedule C of	436
section 124.15 or schedule E-2 of section 124.152 of the Revised	437
Code and whose primary duties do not require the exercise of	438
administrative discretion; or any member of a board, commission,	439
or bureau of any county or city who receives less than one	440
thousand dollars per year for serving in that position.	441

Sec. 102.03.  (A)(1) No present or former public official or	442
employee shall, during public employment or service or for twelve	443
months thereafter, represent a client or act in a representative	444
capacity for any person on any matter in which the public official	445
or employee personally participated as a public official or	446
employee through decision, approval, disapproval, recommendation,	447
the rendering of advice, investigation, or other substantial	448
exercise of administrative discretion.	449

(2) For twenty-four months after the conclusion of service,	450
no former commissioner or attorney examiner of the public	451
utilities commission shall represent a public utility, as defined	452
in section 4905.02 of the Revised Code, or act in a representative	453
capacity on behalf of such a utility before any state board,	454
commission, or agency.	455

(3) For twenty-four months after the conclusion of employment	456
or service, no former public official or employee who personally	457
participated as a public official or employee through decision,	458
approval, disapproval, recommendation, the rendering of advice,	459
the development or adoption of solid waste management plans,	460
investigation, inspection, or other substantial exercise of	461
administrative discretion under Chapter 343. or 3734. of the	462
Revised Code shall represent a person who is the owner or operator	463
of a facility, as defined in section 3734.01 of the Revised Code,	464
or who is an applicant for a permit or license for a facility	465
under that chapter, on any matter in which the public official or	466
employee personally participated as a public official or employee.	467

(4) For a period of one year after the conclusion of	468
employment or service as a member or employee of the general	469
assembly, no former member or employee of the general assembly	470
shall represent, or act in a representative capacity for, any	471
person on any matter before the general assembly, any committee of	472
the general assembly, or the controlling board. Division (A)(4) of	473
this section does not apply to or affect a person who separates	474
from service with the general assembly on or before December 31,	475
1995. As used in division (A)(4) of this section "person" does not	476
include any state agency or political subdivision of the state.	477

(5) As used in divisions (A)(1), (2), and (3) of this	478
section, "matter" includes any case, proceeding, application,	479
determination, issue, or question, but does not include the	480
proposal, consideration, or enactment of statutes, rules,	481
ordinances, resolutions, or charter or constitutional amendments.	482
As used in division (A)(4) of this section, "matter" includes the	483
proposal, consideration, or enactment of statutes, resolutions, or	484
constitutional amendments. As used in division (A) of this	485
section, "represent" includes any formal or informal appearance	486
before, or any written or oral communication with, any public	487
agency on behalf of any person.	488

(6) Nothing contained in division (A) of this section shall	489
prohibit, during such period, a former public official or employee	490
from being retained or employed to represent, assist, or act in a	491
representative capacity for the public agency by which the public	492
official or employee was employed or on which the public official	493
or employee served.	494

(7) Division (A) of this section shall not be construed to	495
prohibit the performance of ministerial functions, including, but	496
not limited to, the filing or amendment of tax returns,	497
applications for permits and licenses, incorporation papers, and	498
other similar documents.	499

(B) No present or former public official or employee shall	500
disclose or use, without appropriate authorization, any	501
information acquired by the public official or employee in the	502
course of the public official's or employee's official duties that	503
is confidential because of statutory provisions, or that has been	504
clearly designated to the public official or employee as	505
confidential when that confidential designation is warranted	506
because of the status of the proceedings or the circumstances	507
under which the information was received and preserving its	508
confidentiality is necessary to the proper conduct of government	509
business.	510

(C) No public official or employee shall participate within	511
the scope of duties as a public official or employee, except	512
through ministerial functions as defined in division (A) of this	513
section, in any license or rate-making proceeding that directly	514
affects the license or rates of any person, partnership, trust,	515
business trust, corporation, or association in which the public	516
official or employee or immediate family owns or controls more	517
than five per cent. No public official or employee shall	518
participate within the scope of duties as a public official or	519
employee, except through ministerial functions as defined in	520
division (A) of this section, in any license or rate-making	521
proceeding that directly affects the license or rates of any	522
person to whom the public official or employee or immediate	523
family, or a partnership, trust, business trust, corporation, or	524
association of which the public official or employee or the public	525
official's or employee's immediate family owns or controls more	526
than five per cent, has sold goods or services totaling more than	527
one thousand dollars during the preceding year, unless the public	528
official or employee has filed a written statement acknowledging	529
that sale with the clerk or secretary of the public agency and the	530
statement is entered in any public record of the agency's	531
proceedings. This division shall not be construed to require the	532
disclosure of clients of attorneys or persons licensed under	533
section 4732.12 or 4732.15 of the Revised Code, or patients of	534
persons certified under section 4731.14 of the Revised Code.	535

(D) No public official or employee shall use or authorize the	536
use of the authority or influence of office or employment to	537
secure anything of value or the promise or offer of anything of	538
value that is of such a character as to manifest a substantial and	539
improper influence upon the public official or employee with	540
respect to that person's duties.	541

(E) No public official or employee shall solicit or accept	542
anything of value that is of such a character as to manifest a	543
substantial and improper influence upon the public official or	544
employee with respect to that person's duties.	545

(F) No person shall promise or give to a public official or	546
employee anything of value that is of such a character as to	547
manifest a substantial and improper influence upon the public	548
official or employee with respect to that person's duties.	549

(G) In the absence of bribery or another offense under the	550
Revised Code or a purpose to defraud, contributions made to a	551
campaign committee, political party, legislative campaign fund,	552
political action committee, or political contributing entity on	553
behalf of an elected public officer or other public official or	554
employee who seeks elective office shall be considered to accrue	555
ordinarily to the public official or employee for the purposes of	556
divisions (D), (E), and (F) of this section.	557

As used in this division, "contributions," "campaign	558
committee," "political party," "legislative campaign fund,"	559
"political action committee," and "political contributing entity"	560
have the same meanings as in section 3517.01 of the Revised Code.	561

(H)(1) No public official or employee, except for the	562
president or other chief administrative officer of or a member of	563
a board of trustees of a state institution of higher education as	564
defined in section 3345.011 of the Revised Code, who is required	565
to file a financial disclosure statement under section 102.02 of	566
the Revised Code shall solicit or accept, and no person shall give	567
to that public official or employee, an honorarium. ThisExcept as	568
provided in division (H)(2) of this section, this division and	569
divisions (D), (E), and (F) of this section do not prohibit a	570
public official or employee who is required to file a financial	571
disclosure statement under section 102.02 of the Revised Code from	572
accepting and do not prohibit a person from giving to that public	573
official or employee the payment of actual travel expenses,	574
including any expenses incurred in connection with the travel for	575
lodging, and meals, food, and beverages provided to the public	576
official or employee at a meeting at which the public official or	577
employee participates in a panel, seminar, or speaking engagement	578
or provided to the public official or employee at a meeting or	579
convention of a national organization to which any state agency,	580
including, but not limited to, any state legislative agency or	581
state institution of higher education as defined in section	582
3345.011 of the Revised Code, pays membership dues. ThisExcept as	583
provided in division (H)(2) of this section, this division and	584
divisions (D), (E), and (F) of this section do not prohibit a	585
public official or employee who is not required to file a	586
financial disclosure statement under section 102.02 of the Revised	587
Code from accepting and do not prohibit a person from promising or	588
giving to that public official or employee an honorarium or the	589
payment of travel, meal, and lodging expenses if the honorarium,	590
expenses, or both were paid in recognition of demonstrable	591
business, professional, or esthetic interests of the public	592
official or employee that exist apart from public office or	593
employment, including, but not limited to, such a demonstrable	594
interest in public speaking and were not paid by any person or	595
other entity, or by any representative or association of those	596
persons or entities, that is regulated by, doing business with, or	597
seeking to do business with the department, division, institution,	598
board, commission, authority, bureau, or other instrumentality of	599
the governmental entity with which the public official or employee	600
serves.	601

(2) No person who is a member of the board of a state	602
retirement system, a state retirement system investment officer,	603
or an employee of a state retirement system whose position	604
involves substantial and material exercise of discretion in the	605
investment of retirement system funds shall solicit or accept, and	606
no person shall give to that board member, officer, or employee,	607
payment of actual travel expenses, including expenses incurred	608
with the travel for lodging, meals, food, and beverages.	609

(I) A public official or employee may accept travel, meals,	610
and lodging or expenses or reimbursement of expenses for travel,	611
meals, and lodging in connection with conferences, seminars, and	612
similar events related to official duties if the travel, meals,	613
and lodging, expenses, or reimbursement is not of such a character	614
as to manifest a substantial and improper influence upon the	615
public official or employee with respect to that person's duties.	616
The house of representatives and senate, in their code of ethics,	617
and the Ohio ethics commission, under section 111.15 of the	618
Revised Code, may adopt rules setting standards and conditions for	619
the furnishing and acceptance of such travel, meals, and lodging,	620
expenses, or reimbursement.	621

A person who acts in compliance with this division and any	622
applicable rules adopted under it, or any applicable, similar	623
rules adopted by the supreme court governing judicial officers and	624
employees, does not violate division (D), (E), or (F) of this	625
section. This division does not preclude any person from seeking	626
an advisory opinion from the appropriate ethics commission under	627
section 102.08 of the Revised Code.	628

(J) For purposes of divisions (D), (E), and (F) of this	629
section, the membership of a public official or employee in an	630
organization shall not be considered, in and of itself, to be of	631
such a character as to manifest a substantial and improper	632
influence on the public official or employee with respect to that	633
person's duties. As used in this division, "organization" means a	634
church or a religious, benevolent, fraternal, or professional	635
organization that is tax exempt under subsection 501(a) and	636
described in subsection 501(c)(3), (4), (8), (10), or (19) of the	637
"Internal Revenue Code of 1986." This division does not apply to a	638
public official or employee who is an employee of an organization,	639
serves as a trustee, director, or officer of an organization, or	640
otherwise holds a fiduciary relationship with an organization.	641
This division does not allow a public official or employee who is	642
a member of an organization to participate, formally or	643
informally, in deliberations, discussions, or voting on a matter	644
or to use his official position with regard to the interests of	645
the organization on the matter if the public official or employee	646
has assumed a particular responsibility in the organization with	647
respect to the matter or if the matter would affect that person's	648
personal, pecuniary interests.	649

(K) It is not a violation of this section for a prosecuting	650
attorney to appoint assistants and employees in accordance with	651
division (B) of section 309.06 and section 2921.421 of the Revised	652
Code, for a chief legal officer of a municipal corporation or an	653
official designated as prosecutor in a municipal corporation to	654
appoint assistants and employees in accordance with sections	655
733.621 and 2921.421 of the Revised Code, for a township law	656
director appointed under section 504.15 of the Revised Code to	657
appoint assistants and employees in accordance with sections	658
504.151 and 2921.421 of the Revised Code, or for a coroner to	659
appoint assistants and employees in accordance with division (B)	660
of section 313.05 of the Revised Code.	661

As used in this division, "chief legal officer" has the same	662
meaning as in section 733.621 of the Revised Code.	663

Sec. 102.06.  (A) The appropriate ethics commission shall	664
receive and may initiate complaints against persons subject to	665
Chapter 102. of the Revised Code concerning conduct alleged to be	666
in violation of this chapter or section 2921.42 or 2921.43 of the	667
Revised Code. All complaints except those by the commission shall	668
be by affidavit made on personal knowledge, subject to the	669
penalties of perjury. Complaints by the commission shall be by	670
affidavit, based upon reasonable cause to believe that a violation	671
has occurred.	672

(B) The commission shall investigate complaints, may	673
investigate charges presented to it, and may request further	674
information, including the specific amount of income from a	675
source, from any person filing with the commission a statement	676
required by section 102.02 of the Revised Code, if the information	677
sought is directly relevant to a complaint or charges received by	678
the commission pursuant to this section. This information is	679
confidential, except that the commission, at its discretion, may	680
share information gathered in the course of any investigation	681
with, or disclose the information to, the inspector general, any	682
appropriate prosecuting authority, any law enforcement agency, or	683
any other appropriate ethics commission. The person so requested	684
shall furnish the information to the commission, unless within	685
fifteen days from the date of the request the person files an	686
action for declaratory judgment challenging the legitimacy of the	687
request in the court of common pleas of the county of the person's	688
residence, the person's place of employment, or Franklin county.	689
The requested information need not be furnished to the commission	690
during the pendency of the judicial proceedings. Proceedings of	691
the commission in connection with the declaratory judgment action	692
shall be kept confidential except as otherwise provided by this	693
section. Before the commission proceeds to take any formal action	694
against a person who is the subject of an investigation based on	695
charges presented to the commission, a complaint shall be filed	696
against the person. If the commission finds that a complaint is	697
not frivolous, and there is reasonable cause to believe that the	698
facts alleged in a complaint constitute a violation of section	699
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised	700
Code, it shall hold a hearing. If the commission does not so find,	701
it shall dismiss the complaint and notify the accused person in	702
writing of the dismissal of the complaint. The commission shall	703
not make a report of its finding unless the accused person	704
requests a report. Upon the request of the accused person, the	705
commission shall make a public report of its finding. The person	706
against whom the complaint is directed shall be given reasonable	707
notice by certified mail of the date, time, and place of the	708
hearing and a statement of the charges and the law directly	709
involved and shall be given the opportunity to be represented by	710
counsel, to have counsel appointed for the person if the person is	711
unable to afford counsel without undue hardship, to examine the	712
evidence against the person, to produce evidence and to call and	713
subpoena witnesses in the person's defense, to confront the	714
person's accusers, and to cross-examine witnesses. The commission	715
shall have a stenographic record made of the hearing. The hearing	716
shall be closed to the public.	717

(C)(1)(a) If upon the basis of the hearing, the commission	718
finds by a preponderance of the evidence that the facts alleged in	719
the complaint are true and constitute a violation of section	720
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised	721
Code, it shall report its findings to the appropriate prosecuting	722
authority for proceedings in prosecution of the violation and to	723
the appointing or employing authority of the accused. If the	724
accused person is a member of the public employees retirement	725
board, state teachers retirement board, school employees	726
retirement board, board of trustees of the Ohio police and fire	727
pension fund, or state highway patrol retirement board, the	728
commission also shall report its findings to the Ohio retirement	729
study council.	730

(b) If the Ohio ethics commission reports its findings to the	731
appropriate prosecuting authority under division (C)(1)(a) of this	732
section and the prosecuting authority has not initiated any	733
official action on those findings within ninety days after	734
receiving the commission's report of them, then the commission may	735
publicly comment that no official action has been taken on its	736
findings, except that the commission shall make no comment in	737
violation of the Rules of Criminal Procedure or about any	738
indictment that has been sealed pursuant to any law or those	739
rules. The commission shall make no comment regarding the merits	740
of its findings. As used in division (C)(1)(b) of this section,	741
"official action" means prosecution, closure after investigation,	742
or grand jury action resulting in a true bill of indictment or no	743
true bill of indictment.	744

(2) If the appropriate ethics commission does not find by a	745
preponderance of the evidence that the facts alleged in the	746
complaint are true and constitute a violation of section 102.02,	747
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code or	748
if the commission has not scheduled a hearing within ninety days	749
after the complaint is filed or has not finally disposed of the	750
complaint within six months after it has been heard, it shall	751
dismiss the complaint and notify the accused person in writing of	752
the dismissal of the complaint. The commission shall not make a	753
report of its finding unless the accused person requests a report.	754
Upon the request of the accused person, the commission shall make	755
a public report of the finding, but in this case all evidence and	756
the record of the hearing shall remain confidential unless the	757
accused person also requests that the evidence and record be made	758
public. Upon request by the accused person, the commission shall	759
make the evidence and the record available for public inspection.	760

(D) The commission, or a member of the commission, may	761
administer oaths, and the commission may issue subpoenas to any	762
person in the state compelling the attendance of witnesses and the	763
production of relevant papers, books, accounts, and records. The	764
commission shall issue subpoenas to compel the attendance of	765
witnesses and the production of documents upon the request of an	766
accused person. Section 101.42 of the Revised Code shall govern	767
the issuance of these subpoenas insofar as applicable. Upon the	768
refusal of any person to obey a subpoena or to be sworn or to	769
answer as a witness, the commission may apply to the court of	770
common pleas of Franklin county under section 2705.03 of the	771
Revised Code. The court shall hold proceedings in accordance with	772
Chapter 2705. of the Revised Code. The commission or the accused	773
person may take the depositions of witnesses residing within or	774
without the state in the same manner as prescribed by law for the	775
taking of depositions in civil actions in the court of common	776
pleas.	777

(E) At least once each year, the Ohio ethics commission shall	778
report on its activities of the immediately preceding year to the	779
majority and minority leaders of the senate and house of	780
representatives of the general assembly. The report shall indicate	781
the total number of complaints received, initiated, and	782
investigated by the commission, the total number of complaints for	783
which formal hearings were held, and the total number of	784
complaints for which formal prosecution was recommended or	785
requested by the commission. The report also shall indicate the	786
nature of the inappropriate conduct alleged in each complaint and	787
the governmental entity with which any employee or official that	788
is the subject of a complaint was employed at the time of the	789
alleged inappropriate conduct.	790

(F) All papers, records, affidavits, and documents upon any	791
complaint, inquiry, or investigation relating to the proceedings	792
of the appropriate commission shall be sealed and are private and	793
confidential, except as otherwise provided in this section and	794
section 102.07 of the Revised Code.	795

(G)(1) When a complaint or charge is before it, the Ohio	796
ethics commission or the appropriate prosecuting authority, in	797
consultation with the person filing the complaint or charge, the	798
accused, and any other person the commission or prosecuting	799
authority considers necessary, may compromise or settle the	800
complaint or charge with the agreement of the accused. The	801
compromise or settlement may include mediation, restitution,	802
rescission of affected contracts, forfeiture of any benefits	803
resulting from a violation or potential violation of law,	804
resignation of a public official or employee, or any other relief	805
that is agreed upon between the commission or prosecuting	806
authority and the accused.	807

(2) Any settlement agreement entered into under division	808
(G)(1) of this section shall be in writing and be accompanied by a	809
statement of the findings of the commission or prosecuting	810
authority and the reasons for entering into the agreement. The	811
commission or prosecuting authority shall retain the agreement and	812
statement in the commission's or prosecuting attorney's	813
authority's office and, in the commission's or prosecuting	814
authority's discretion, may make the agreement, the statement, and	815
any supporting information public, unless the agreement provides	816
otherwise.	817

(3) If a settlement agreement is breached by the accused, the	818
commission or prosecuting authority, in the commission's or	819
prosecuting authority's discretion, may rescind the agreement and	820
reinstitute any investigation, hearing, or prosecution of the	821
accused. No information obtained from the accused in reaching the	822
settlement that is not otherwise discoverable from the accused	823
shall be used in any proceeding before the commission or by the	824
appropriate prosecuting authority in prosecuting the violation.	825
Notwithstanding any other section of the Revised Code, if a	826
settlement agreement is breached, any statute of limitations for a	827
violation of this chapter or section 2921.42 or 2921.43 of the	828
Revised Code is tolled from the date the complaint or charge is	829
filed until the date the settlement agreement is breached.	830

Sec. 109.98. As used in this section, "state retirement	831
board" means the public employees retirement board, board of	832
trustees of the Ohio police and fire pension fund, school	833
employees retirement board, state teachers retirement board, and	834
state highway patrol retirement board.	835

If a member of a state retirement board breaches the member's	836
fiduciary duty to the retirement system, the attorney general may	837
maintain a civil action against the board member for harm	838
resulting from that breach. The attorney general may recover	839
damages or be granted injunctive relief, which shall include the	840
enjoinment of specified activities and the removal of the member	841
from the board. Any damages awarded shall be paid to the	842
retirement system. The authority to maintain a civil action	843
created by this section is in addition to any authority the	844
attorney general possesses under any other provision of the	845
Revised Code.	846

Sec. 111.30. (A) As used in this section, "state retirement	847
board" means the public employees retirement board, board of	848
trustees of the Ohio police and fire pension fund, school	849
employees retirement board, state teachers retirement board, and	850
state highway patrol retirement board.	851

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

852

(1) Adopt rules in accordance with Chapter 119. of the	853
Revised Code governing the election of state retirement board	854
members under sections 145.05, 742.04, 3307.07, 3309.07, and	855
5505.041 of the Revised Code, including special elections provided	856
for by section 145.051 of the Revised Code. The rules shall	857
include rules governing nominating petitions for the elections.	858

(2) Oversee the administration of board member elections by	859
state retirement boards;	860

(3) Certify the validity of nominating petitions for the	861
elections;	862

(4) Certify the results of the elections;

863

(5) Prescribe forms for campaign finance disclosure	864
statements and independent expenditure statements for the purpose	865
of sections 145.053, 742.042, 3307.072, 3309.072, and 5505.044 of	866
the Revised Code and accept the forms from candidates and persons	867
making independent expenditures filing them with the secretary	868
pursuant to those sections;	869

(6) Oversee elections held under sections 145.06, 742.05,	870
3307.06, 3309.06, and 5505.042 of the Revised Code to fill	871
vacancies in the boards;	872

(7) Certify the results of the elections to fill vacancies in	873
the boards.	874

Sec. 117.10.  The auditor of state shall audit all public	875
offices as provided in this chapter. The auditor of state also may	876
audit the accounts of private institutions, associations, boards,	877
and corporations receiving public money for their use and may	878
require of them annual reports in such form as the auditor of	879
state prescribes.	880

If the auditor of state performs or contracts for the	881
performance of an audit, including a special audit, of the public	882
employees retirement system, school employees retirement system,	883
state teachers retirement system, state highway patrol retirement	884
system, or Ohio police and fire pension fund, the auditor of state	885
shall make a timely report of the results of the audit to the Ohio	886
retirement study council.	887

The auditor of state may audit the accounts of any provider	888
as defined in section 5111.06 of the Revised Code, if requested by	889
the department of job and family services.	890

If a public office has been audited by an agency of the	891
United States government, the auditor of state may, if satisfied	892
that the federal audit has been conducted according to principles	893
and procedures not contrary to those of the auditor of state, use	894
and adopt the federal audit and report in lieu of an audit by the	895
auditor of state's own office.	896

Within thirty days after the creation or dissolution or the	897
winding up of the affairs of any public office, that public office	898
shall notify the auditor of state in writing that this action has	899
occurred.	900

Sec. 145.04.  The general administration and management of	901
the public employees retirement system and the making effective of	902
Chapter 145. of the Revised Code, are hereby vested in a board to	903
be known as the "public employees retirement board," which shall	904
consist of ninethe following members as follows:	905

(A) The attorney generaltreasurer of state;

906

(B) The auditor of state;

907

(C) The director of administrative services;

908

(D) FiveSix members, known as employee members, one of whom	909
shall be a state employee member of the system, who shall be	910
elected by ballot by the state employee members of the system from	911
among their number; another of whom shall be a county employee	912
member of the system, who shall be elected by ballot by the county	913
employee members of the system from among their number; another of	914
whom shall be a member of the system who is a county commissioner,	915
prosecutor, auditor, sheriff, treasurer, recorder, engineer, or	916
coroner, who shall be appointed by the governor for a term of four	917
years; another of whom shall be a municipal employee member of the	918
system, who shall be elected by ballot by the municipal employee	919
members of the system from among their number; another of whom	920
shall be a university or college employee member of the system,	921
who shall be elected by ballot by the university and college	922
employee members of the system from among their number; and	923
another of whom shall be a park district, conservancy district,	924
sanitary district, health district, public library, township,	925
metropolitan housing authority, union cemetery, joint hospital,	926
township, or institutional commissary employee member of the	927
system, who shall be elected by ballot by the park district,	928
conservancy district, sanitary district, health district,	929
metropolitan housing authority, township, public library, union	930
cemetery, joint hospital, township, and institutional commissary	931
employee members of the system from among their number, in a	932
manner to be approved by the board. Members of the system who are	933
receiving a disability benefit under this chapter are ineligible	934
for membership on the board as employee members.	935

(E) One member, known as the retirant member, who shall be a	936
former member of the public employees retirement system who is a	937
resident of this state and a recipient of age and service	938
retirement, a disability benefit, or benefits paid under a PERS	939
defined contribution plan. The retirant member shall be elected by	940
ballot by former members of the system who are receiving age and	941
service retirement, a disability benefit, or benefits paid under a	942
PERS defined contribution plan;	943

(F)(1) One member, known as the investment expert member, who	944
shall be appointed by the governor and who shall have the	945
following qualifications:	946

(a) The member is a resident of this state.

947

(b) Within the three years immediately preceding the	948
appointment, the member has not been employed by the public	949
employees retirement system, police and fire pension fund, state	950
teachers retirement system, school employees retirement system, or	951
state highway patrol retirement system or by any person,	952
partnership, or corporation that has provided to one of those	953
retirement systems services of a financial or investment nature,	954
including the management, analysis, supervision, or investment of	955
assets.	956

(c) The member has direct experience in the management,	957
analysis, supervision, or investment of assets.	958

(2) The investment expert member's term shall be four years.	959
The initial investment expert member shall be appointed and take	960
office not less than ninety days after the effective date of this	961
amendment. Any investment expert member appointed to fill a	962
vacancy occurring prior to the expiration of the term for which	963
the member's predecessor was appointed shall hold office until the	964
end of such term. The member shall continue in office subsequent	965
to the expiration date of the member's term until the member's	966
successor takes office, or until a period of sixty days has	967
elapsed, whichever occurs first.	968

Sec. 145.041. Each newly elected member of the public	969
employees retirement board and each individual appointed to fill a	970
vacancy on the board, shall, not later than ninety days after	971
commencing service as a board member, complete the orientation	972
program component of the retirement board member education program	973
established under section 171.50 of the Revised Code.	974

Each member of the board who has served a year or longer as a	975
board member shall, not less than twice each year, attend one or	976
more programs that are part of the continuing education component	977
of the retirement board member education program established under	978
section 171.50 of the Revised Code.	979

Sec. 145.042. A person who served as an elected or appointed	980
member of the public employees retirement board for one or more	981
entire fiscal years in fiscal years 2000, 2001, or 2002 is	982
ineligible for re-election or reappointment to the board if the	983
person has accepted reimbursements for travel and travel-related	984
expenses from the board that have an annual average of more than	985
ten thousand dollars for those fiscal years.	986

Sec. 145.05.  (A) The terms of office of employee members of	987
the public employees retirement board shall be for four years each	988
beginning on the first day of January following election. The	989
election of the county employee member of the board and the	990
employee member of the board representing public library, health	991
district, park district, conservancy district, sanitary district,	992
township, metropolitan housing authority, union cemetery, joint	993
hospital, and institutional commissary employees shall be held on	994
the first Monday in October, 1945, and on the first Monday in	995
October in each fourth year thereafter. The election of the state	996
employee member of the board and the municipal employee member of	997
the board shall be held on the first Monday in October, 1946, and	998
on the first Monday in October in each fourth year thereafter. The	999
election of the initial university-college employee member of the	1000
board shall be held on the first Monday in October, 1978, and	1001
elections for subsequent university-college employee members of	1002
the board shall be held on the first Monday in October in each	1003
fourth year thereafter.	1004

(B) The term of office of the retirant member of the public	1005
employees retirement board shall be for four years beginning on	1006
the first day of January following the election. The election of	1007
the initial retirant member of the board shall be held on the	1008
first Monday in October, 1978, and elections for subsequent	1009
retirant members of the board shall be held on the first Monday in	1010
October in each fourth year thereafter.	1011

(C) All elections for employee members of the public	1012
employees retirement board shall be held under the direction of	1013
the board in accordance with rules adopted under section 111.30 of	1014
the Revised Code. Any member of the public employees retirement	1015
system, except a member who is receiving a disability benefit	1016
under this chapter, is eligible for election as an employee member	1017
of the board to represent the employee group that includes the	1018
member, provided that the member has been nominated by a petition	1019
that is signed by at least five hundred members of the employee	1020
group to be represented and further provided that there shall be,	1021
including not less than twenty such signers from each of at least	1022
ten counties of the state, and certified under section 111.30 of	1023
the Revised Code. The name of any member so nominated shall be	1024
placed upon the ballot by the board as a regular candidate. Names	1025
of other eligible candidates may, at any election, be substituted	1026
for the regular candidates by writing such names upon the ballots.	1027
The candidate who receives the highest number of votes for a	1028
particular employee member position on the board shall be elected	1029
to that office on certification of the election results under	1030
section 111.30 of the Revised Code.	1031

(D) All elections for the retirant member of the public	1032
employees retirement board shall be held under the direction of	1033
the board in accordance with rules adopted under section 111.30 of	1034
the Revised Code. Any former member of the public employees	1035
retirement system who is described in division (E) of section	1036
145.04 of the Revised Code is eligible for election as the	1037
retirant member of the board to represent recipients of age and	1038
service retirement, a disability benefit, or benefits paid under a	1039
PERS defined contribution plan, provided that such person has been	1040
nominated by a petition that is signed by any combination of at	1041
least two hundred fifty eligible, former members of the system who	1042
are recipientsand certified under section 111.30 of the Revised	1043
Code. To be eligible to sign the petition, a former member of the	1044
system must be a recipient of age and service retirement, a	1045
disability benefit, or benefits paid under a PERS defined	1046
contribution plan, or any combination of such recipients that	1047
totals two hundred fifty. The petition shall contain the	1048
signatures of at least ten such recipients from each of at least	1049
five counties wherein recipients of benefits from the system	1050
reside.	1051

The name of any person nominated in this manner shall be	1052
placed upon the ballot by the board as a regular candidate. Names	1053
of other eligible candidates may, at any election for the retirant	1054
member of the board, be substituted for the regular candidates by	1055
writing the names of such persons upon the ballot. The candidate	1056
who receives the highest number of votes for any term as the	1057
retirant member of the board shall be elected to office on	1058
certification of the election results under section 111.30 of the	1059
Revised Code.	1060

Sec. 145.051. If a person elected to serve on the public	1061
employees retirement board is unable to assume office at the	1062
January meeting of the board following the person's election, a	1063
special election shall be held in accordance with the provisions	1064
of section 145.05 of the Revised Code within three months of the	1065
January meeting. On certification of the elections results under	1066
section 111.30 of the Revised Code, the newly elected person shall	1067
assume office at the meeting of the board immediately following	1068
the special election.	1069

Sec. 145.051.        Sec. 145.052.  Notwithstanding sections 145.04 and	1070
145.05 of the Revised Code, the public employees retirement board	1071
is not required to hold an election, including a special election	1072
under section 145.06145.051 of the Revised Code, for a position	1073
on the board as an employee member or retirant member if only one	1074
candidate has been nominated for the position by petition in	1075
accordance with section 145.05 of the Revised Code. The candidate	1076
shall take office as if elected. The term of office shall be four	1077
years beginning on the first day of January following the date the	1078
candidate was nominated.	1079

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

1080

(1) "Campaign committee" means a candidate or a combination	1081
of two or more persons authorized by a candidate to receive	1082
contributions and in-kind contributions and make expenditures on	1083
behalf of the candidate.	1084

(2) "Candidate" means an individual who has been nominated	1085
pursuant to division (C) or (D) of section 145.05 of the Revised	1086
Code for election to the public employees retirement board or who	1087
is seeking to be elected to fill a vacancy on the board pursuant	1088
to section 145.06 of the Revised Code.	1089

(3) "Contribution" means a loan, gift, deposit, forgiveness	1090
of indebtedness, donation, advance, payment, transfer of funds or	1091
transfer of anything of value including a transfer of funds from	1092
an inter vivos or testamentary trust or decedent's estate, and the	1093
payment by any person other than the person to whom the services	1094
are rendered for the personal services of another person, which	1095
contribution is made, received, or used for the purpose of	1096
influencing the results of an election to the public employees	1097
retirement board under section 145.05 of the Revised Code,	1098
including a special election provided for by section 145.051 of	1099
the Revised Code, or the results of an election to fill a vacancy	1100
on the board pursuant to section 145.06 of the Revised Code.	1101
"Contribution" does not include:	1102

(a) Services provided without compensation by individuals	1103
volunteering a portion or all of their time on behalf of a person;	1104

(b) Ordinary home hospitality;

1105

(c) The personal expenses of a volunteer paid for by that	1106
volunteer campaign worker.	1107

(4) "Election day" means the following, as appropriate to the	1108
situation:	1109

(a) The first Monday in October of a year for which section	1110
145.05 of the Revised Code specifies that an election for a member	1111
of the public employees retirement board be held;	1112

(b) If, pursuant to section 145.052 of the Revised Code, no	1113
election is held, the first Monday in October of a year that the	1114
election would have been held if not for section 145.052 of the	1115
Revised Code;	1116

(c) If the election is a special election provided for by	1117
section 145.051 of the Revised Code, a day that the board shall	1118
specify that is consistent with requirements for a special	1119
election established by section 145.051 of the Revised Code.	1120

(5) "Expenditure" means the disbursement or use of a	1121
contribution for the purpose of influencing the results of an	1122
election to the public employees retirement board under section	1123
145.05 of the Revised Code, including a special election provided	1124
for by section 145.051 of the Revised Code, or the results of an	1125
election to fill a vacancy on the board pursuant to section 145.06	1126
of the Revised Code.	1127

(6) "Independent expenditure" means an expenditure by an	1128
individual, partnership, or other entity advocating the election	1129
or defeat of an identified candidate or candidates, that is not	1130
made with the consent of, in coordination, cooperation, or	1131
consultation with, or at the request or suggestion of any	1132
candidate or candidates or of the campaign committee or agent of	1133
the candidate or candidates. An independent expenditure shall not	1134
be construed as being a contribution. As used in division (A)(6)	1135
of this section:	1136

(a) "Advocating" means any communication containing a message	1137
advocating election or defeat.	1138

(b) "Identified candidate" means that the name of the	1139
candidate appears, a photograph or drawing of the candidate	1140
appears, or the identity of the candidate is otherwise apparent by	1141
unambiguous reference.	1142

(c) "Made in coordination, cooperation, or consultation with,	1143
or at the request or suggestion of, any candidate or the campaign	1144
committee or agent of the candidate" means made pursuant to any	1145
arrangement, coordination, or direction by the candidate, the	1146
candidate's campaign committee, or the candidate's agent prior to	1147
the publication, distribution, display, or broadcast of the	1148
communication. An expenditure is presumed to be so made when it is	1149
any of the following:	1150

(i) Based on information about the candidate's plans,	1151
projects, or needs provided to the person making the expenditure	1152
by the candidate, or by the candidate's campaign committee or	1153
agent, with a view toward having an expenditure made;	1154

(ii) Made by or through any person who is, or has been,	1155
authorized to raise or expend funds, who is, or has been, an	1156
officer of the candidate's campaign committee, or who is, or has	1157
been, receiving any form of compensation or reimbursement from the	1158
candidate or the candidate's campaign committee or agent;	1159

(iii) Made by a political party in support of a candidate,	1160
unless the expenditure is made by a political party to conduct	1161
voter registration or voter education efforts.	1162

(d) "Agent" means any person who has actual oral or written	1163
authority, either express or implied, to make or to authorize the	1164
making of expenditures on behalf of a candidate, or means any	1165
person who has been placed in a position with the candidate's	1166
campaign committee or organization such that it would reasonably	1167
appear that in the ordinary course of campaign-related activities	1168
the person may authorize expenditures.	1169

(7) "In-kind contribution" means anything of value other than	1170
money that is used to influence the results of an election to the	1171
public employees retirement board under section 145.05 of the	1172
Revised Code, including a special election provided for by section	1173
145.051 of the Revised Code, or the results of an election to fill	1174
a vacancy on the board pursuant to section 145.06 of the Revised	1175
Code, or is transferred to or used in support of or in opposition	1176
to a candidate and that is made with the consent of, in	1177
coordination, cooperation, or consultation with, or at the request	1178
or suggestion of the benefited candidate. The financing of the	1179
dissemination, distribution, or republication, in whole or part,	1180
of any broadcast or of any written, graphic, or other form of	1181
campaign materials prepared by the candidate, the candidate's	1182
campaign committee, or their authorized agents is an in-kind	1183
contribution to the candidate and an expenditure by the candidate.	1184

(8) "Personal expenses" includes ordinary expenses for	1185
accommodations, clothing, food, personal motor vehicle or	1186
airplane, and home telephone.	1187

(B) Except as otherwise provided in division (D) of this	1188
section, each candidate who, or whose campaign committee, receives	1189
a contribution or in-kind contribution or makes an expenditure in	1190
connection with the candidate's efforts to be elected to the	1191
public employees retirement board shall file with the secretary of	1192
state two complete, accurate, and itemized statements setting	1193
forth in detail the contributions, in-kind contributions, and	1194
expenditures. The statements shall be filed regardless of whether	1195
the election is a regular election or, pursuant to section 145.051	1196
of the Revised Code, a special election. The statements shall also	1197
be filed regardless of whether, pursuant to section 145.052 of the	1198
Revised Code, no election is held. The statements shall be made on	1199
a form prescribed under section 111.30 of the Revised Code. Every	1200
expenditure shall be vouched for by a receipted bill, stating the	1201
purpose of the expenditures, that shall be filed with the	1202
statement; a canceled check with a notation of the purpose of the	1203
expenditure is a receipted bill for purposes of this division.	1204

The first statement shall be filed not later than four p.m.	1205
on the day that is twelve days before election day. The second	1206
statement shall be filed not sooner than the day that is eight	1207
days after election day and not later than thirty-eight days after	1208
election day. The first statement shall reflect contributions and	1209
in-kind contributions received and expenditures made to the close	1210
of business on the twentieth day before election day. The second	1211
statement shall reflect contributions and in-kind contributions	1212
received and expenditures made during the period beginning on the	1213
nineteenth day before election day and ending on the close of	1214
business on the seventh day after election day.	1215

(C) Each individual, partnership, or other entity that makes	1216
an independent expenditure in connection with the candidate's	1217
efforts to be elected to the public employees retirement board	1218
shall file with the secretary of state two complete, accurate, and	1219
itemized statements setting forth in detail the independent	1220
expenditures. The statements shall be filed regardless of whether	1221
the election is a regular election or, pursuant to section 145.051	1222
of the Revised Code, a special election. The statements also shall	1223
be filed regardless of whether, pursuant to section 145.052 of the	1224
Revised Code, no election is held. The statements shall be made on	1225
a form prescribed under section 111.30 of the Revised Code.	1226

The first statement shall be filed not later than four p.m.	1227
on the day that is twelve days before election day. The second	1228
statement shall be filed not sooner than the day that is eight	1229
days after election day and not later than thirty-eight days after	1230
election day. The first statement shall reflect independent	1231
expenditures made to the close of business on the twentieth day	1232
before election day. The second statement shall reflect	1233
independent expenditures made during the period beginning on the	1234
nineteenth day before election day and ending on the close of	1235
business on the seventh day after election day.	1236

(D) Each candidate who, or whose campaign committee, receives	1237
a contribution or in-kind contribution or makes an expenditure in	1238
connection with the candidate's efforts to be elected to fill a	1239
vacancy in the public employees retirement board pursuant to	1240
section 145.06 of the Revised Code shall file with the secretary	1241
of state a complete, accurate, and itemized statement setting	1242
forth in detail the contributions, in-kind contributions, and	1243
expenditures. The statement shall be made on a form prescribed	1244
under section 111.30 of the Revised Code. Every expenditure shall	1245
be vouched for by a receipted bill, stating the purpose of the	1246
expenditures, that shall be filed with the statement; a canceled	1247
check with a notation of the purpose of the expenditure is a	1248
receipted bill for purposes of this division.	1249

The statement shall be filed within thirty-eight days after	1250
the day the candidate takes office. The statement shall reflect	1251
contributions and in-kind contributions received and expenditures	1252
made to the close of business on the seventh day after the day the	1253
candidate takes office.	1254

Sec. 145.054. (A) No person shall knowingly fail to file a	1255
complete and accurate campaign finance statement or independent	1256
expenditure statement in accordance with section 145.053 of the	1257
Revised Code.	1258

(B) No person, during the course of a person seeking	1259
nomination for, or during any campaign for, election to the public	1260
employees retirement board, shall knowingly and with intent to	1261
affect the nomination or the outcome of the campaign do any of the	1262
following by means of campaign materials, an advertisement on	1263
radio or television or in a newspaper or periodical, a public	1264
speech, press release, or otherwise:	1265

(1) With regard to a candidate, identify the candidate in a	1266
manner that implies that the candidate is a member of the board or	1267
use the term "re-elect" when the candidate is not currently a	1268
member of the board;	1269

(2) Make a false statement concerning the formal schooling or	1270
training completed or attempted by a candidate; a degree, diploma,	1271
certificate, scholarship, grant, award, prize, or honor received,	1272
earned, or held by a candidate; or the period of time during which	1273
a candidate attended any school, college, community technical	1274
school, or institution;	1275

(3) Make a false statement concerning the professional,	1276
occupational, or vocational licenses held by a candidate, or	1277
concerning any position the candidate held for which the candidate	1278
received a salary or wages;	1279

(4) Make a false statement that a candidate or public	1280
official has been indicted or convicted of a theft offense,	1281
extortion, or other crime involving financial corruption or moral	1282
turpitude;	1283

(5) Make a statement that a candidate has been indicted for	1284
any crime or has been the subject of a finding by the Ohio	1285
elections commission without disclosing the outcome of any legal	1286
proceedings resulting from the indictment or finding;	1287

(6) Make a false statement that a candidate or official has a	1288
record of treatment or confinement for mental disorder;	1289

(7) Make a false statement that a candidate or official has	1290
been subjected to military discipline for criminal misconduct or	1291
dishonorably discharged from the armed services;	1292

(8) Falsely identify the source of a statement, issue	1293
statements under the name of another person without authorization,	1294
or falsely state the endorsement of or opposition to a candidate	1295
by a person or publication;	1296

(9) Make a false statement concerning the voting record of a	1297
candidate or public official;	1298

(10) Post, publish, circulate, distribute, or otherwise	1299
disseminate a false statement concerning a candidate, either	1300
knowing the same to be false or with reckless disregard of whether	1301
it was false or not, if the statement is designed to promote the	1302
election, nomination, or defeat of the candidate.	1303

Sec. 145.055.  The secretary of state, or any person acting	1304
on personal knowledge and subject to the penalties of perjury, may	1305
file a complaint with the Ohio elections commission alleging a	1306
violation of section 145.054 of the Revised Code. The complaint	1307
shall be made on a form prescribed and provided by the commission.	1308

On receipt of a complaint under this section, the commission	1309
shall hold a hearing open to the public to determine whether the	1310
violation alleged in the complaint has occurred. The commission	1311
may administer oaths and issue subpoenas to any person in the	1312
state compelling the attendance of witnesses and the production of	1313
relevant papers, books, accounts, and reports. On the refusal of	1314
any person to obey a subpoena or to be sworn or to answer as a	1315
witness, the commission may apply to the court of common pleas of	1316
Franklin county under section 2705.03 of the Revised Code. The	1317
court shall hold contempt proceedings in accordance with Chapter	1318
2705. of the Revised Code.	1319

The commission shall provide the person accused of the	1320
violation at least seven days prior notice of the time, date, and	1321
place of the hearing. The accused may be represented by an	1322
attorney and shall have an opportunity to present evidence, call	1323
witnesses, and cross-examine witnesses.	1324

At the hearing, the commission shall determine whether the	1325
violation alleged in the complaint has occurred. If the commission	1326
determines that a violation of division (A) of section 145.054 of	1327
the Revised Code has occurred, the commission shall either impose	1328
a fine under section 145.99 of the Revised Code or enter a finding	1329
that good cause has been shown not to impose the fine. If the	1330
commission determines that a violation of division (B) of section	1331
145.054 of the Revised Code has occurred, the commission shall	1332
impose the fine described in section 145.99 of the Revised Code,	1333
refer the matter to the appropriate prosecutor, or enter a finding	1334
that good cause has been shown not to impose a fine or refer the	1335
matter to a prosecutor.	1336

Sec. 145.057.  An employee member or retirant member of the	1337
public employees retirement board who is charged with committing a	1338
felony, a theft offense as defined in section 2913.01 of the	1339
Revised Code, or a violation of section 102.02, 102.03, 102.04,	1340
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or	1341
2921.44 of the Revised Code shall be suspended from participation	1342
on the board for the period during which the charges are pending.	1343
If the charges are dismissed, the member is found not guilty, or	1344
the charges are otherwise resolved in a manner not resulting in	1345
the member being convicted of or pleading guilty to an offense of	1346
that nature, the suspension shall end, and the member may	1347
participate on the board. If the member pleads guilty to or is	1348
convicted of the offense, the position of the member on the board	1349
shall be deemed vacant. A person who has pleaded guilty to or been	1350
convicted of an offense of that nature is ineligible for election	1351
to the office of employee member or retirant member of the public	1352
employees retirement board.	1353

Sec. 145.06.  (A) If a vacancy occurs in the term of any	1354
employee member of the public employees retirement board, the	1355
remaining members of the board shall elect ana successor employee	1356
member from the employee group lacking representation because of	1357
the vacancy for the unexpired term. On certification of the	1358
election results under section 111.30 of the Revised Code, the	1359
successor employee member shall hold office until the next board	1360
election that occurs not less than ninety days after the successor	1361
employee member's election.	1362

Any employee member of the board who fails to attend the	1363
meetings of the board for three months or longer, without valid	1364
excuse, shall be considered as having resigned, and the board	1365
shall declare the employee member's office vacated as of the date	1366
of the adoption of a proper resolution.	1367

(B) If a vacancy occurs during the term of office of the	1368
retirant member of the board, the remaining members of the board	1369
shall elect a successor retirant member who shall hold office for	1370
the remainder of the predecessor retirant member's term. The	1371
successor retirant member shall be a former member of the public	1372
employees retirement system who is eligible for election under	1373
section 145.04 of the Revised Code as the retirant member of the	1374
board. On certification of the election results under section	1375
111.30 of the Revised Code, the successor retirant member shall	1376
hold office until the next board election that occurs not less	1377
than ninety days after the successor retirant member's election.	1378

If a retirant member of the board fails to attend the	1379
meetings of the board for three months or longer, without valid	1380
excuse, the retirant member shall be considered as having	1381
resigned, and the board shall declare the member's office vacated	1382
as of the date of the adoption of a proper resolution.	1383

If as a result of changed circumstances the retirant member	1384
would no longer qualify for membership on the board as the	1385
retirant member, the retirant member's office shall be considered	1386
vacant, and a successor retirant member shall be chosen in the	1387
manner specified in this division.	1388

(C) If a person elected to serve on the board is unable to	1389
assume office at the January meeting of the board following the	1390
person's election, a special election shall be held in accordance	1391
with the provisions of section 145.05 of the Revised Code within	1392
three months of the January meeting and the newly elected person	1393
shall assume office at the meeting of the board immediately	1394
following the special electionElections under this section to	1395
fill a vacancy on the board shall be conducted under the	1396
supervision of the secretary of state pursuant to section 111.30	1397
of the Revised Code.	1398

Sec. 145.09.  The public employees retirement board shall	1399
elect from its membership a chairperson, and shall appoint an	1400
executive director who shall serve as secretary to the board, an	1401
actuary, and other employees as necessary for the transaction of	1402
the business of the public employees retirement system. The	1403
compensation of all persons so appointed shall be fixed by the	1404
board. Every	1405

Effective ninety days after the effective date of this	1406
amendment, the board may not employ a state retirement system	1407
investment officer, as defined in section 1707.01 of the Revised	1408
Code, who does not hold a valid state retirement system investment	1409
officer license issued by the division of securities in the	1410
department of commerce.	1411

Every expense voucher of an employee, officer, or board	1412
member of the public employees retirement system shall itemize all	1413
purchases and expenditures.	1414

The board shall perform other functions as required for the	1415
proper execution of this chapter, and may adopt rules in	1416
accordance with section 111.15 of the Revised Code for the proper	1417
administration and management of this chapter.	1418

The board may take all appropriate action to avoid payment by	1419
the system or its members of federal or state income taxes on	1420
contributions to the system or amounts earned on such	1421
contributions.	1422

Notice of proposed rules shall be given to interested parties	1423
and rules adopted by the board shall be published and otherwise	1424
made available. When it files a rule with the joint committee on	1425
agency rule review pursuant to section 111.15 of the Revised Code,	1426
the board shall submit to the Ohio retirement study council a copy	1427
of the full text of the rule, and if applicable, a copy of the	1428
rule summary and fiscal analysis required by division (B) of	1429
section 127.18 of the Revised Code.	1430

The board may sue and be sued, plead and be impleaded,	1431
contract and be contracted with. All of its business shall be	1432
transacted, all of its funds invested, all warrants for money	1433
drawn and payments made, and all of its cash and securities and	1434
other property shall be held in the name of the board, or in the	1435
name of its nominee, provided that nominees are authorized by	1436
retirement board resolution for the purpose of facilitating the	1437
ownership and transfer of investments.	1438

If the Ohio retirement study council establishes a uniform	1439
format for any report the board is required to submit to the	1440
council, the board shall submit the report in that format.	1441

Sec. 145.092. The public employees retirement board shall do	1442
all of the following:	1443

(A) In consultation with the Ohio ethics commission, review	1444
any existing policy regarding the travel and payment of travel	1445
expenses of members and employees of the public employees	1446
retirement board and adopt rules in accordance with section 145.09	1447
of the Revised Code establishing a new or revised policy regarding	1448
travel and payment of travel expenses;	1449

(B) If the board intends to award a bonus to any employee of	1450
the board, adopt rules in accordance with section 145.09 of the	1451
Revised Code establishing a policy regarding employee bonuses;	1452

(C) Provide copies of the rules adopted under divisions (A)	1453
and (B) of this section to each member of the Ohio retirement	1454
study council;	1455

(D) Submit to the Ohio retirement study council a proposed	1456
operating budget, including an administrative budget for the	1457
board, for the next immediate fiscal year and adopt that budget	1458
not earlier than sixty days after it is submitted to the council;	1459

(E) Submit to the council a plan describing how the board	1460
will improve the dissemination of public information pertaining to	1461
the board.	1462

Sec. 145.093. The public employees retirement board shall, in	1463
consultation with the Ohio ethics commission, develop an ethics	1464
policy. The board shall submit this policy to the Ohio retirement	1465
study council for approval.	1466

The council shall review the policy and, if the council	1467
determines, upon the advice of the Ohio ethics commission, that	1468
the policy is adequate, approve the policy. If the council	1469
determines that the policy is inadequate, it shall specify the	1470
revisions to be made and the board shall submit a revised policy.	1471
If the council approves the revised policy, the board shall adopt	1472
it. If not, the board shall make any further revisions required by	1473
the council and adopt the policy.	1474

The board periodically shall provide ethics training to	1475
members and employees of the board. The training shall include	1476
training regarding the requirements and prohibitions of Chapter	1477
102. of the Revised Code and sections 2921.42 and 2921.43 of the	1478
Revised Code and any other training the board considers	1479
appropriate.	1480

The board shall establish a procedure to ensure that each	1481
employee of the board is informed of the procedure for filing a	1482
complaint alleging violation of Chapter 102. of the Revised Code	1483
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	1484
ethics commission or the appropriate prosecuting attorney.	1485

Sec. 145.094.  (A) The public employees retirement board	1486
shall designate a person who is a licensed state retirement system	1487
investment officer to be the chief investment officer for the	1488
public employees retirement system. The board shall notify the	1489
division of securities of the department of commerce in writing of	1490
its designation and of any change in its designation within ten	1491
calendar days of the designation or change.	1492

(B) The chief investment officer shall reasonably supervise	1493
the licensed state retirement system investment officers and other	1494
persons employed by the public employees retirement system with a	1495
view toward preventing violations of Chapter 1707. of the Revised	1496
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and	1497
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.	1498
and following, and the "Securities Exchange Act of 1934," 48 Stat.	1499
881, 15 U.S.C. 78a, and following, and the rules and regulations	1500
promulgated under those statutes. This duty of reasonable	1501
supervision shall include the adoption, implementation, and	1502
enforcement of written policies and procedures reasonably designed	1503
to prevent persons employed by the public employees retirement	1504
system from misusing material, nonpublic information in violation	1505
of those laws, rules, and regulations.	1506

For purposes of this division, no chief investment officer	1507
shall be considered to have failed to satisfy the officer's duty	1508
of reasonable supervision if the officer has done all of the	1509
following:	1510

(1) Adopted and implemented written procedures, and a system	1511
for applying the procedures, that would reasonably be expected to	1512
prevent and detect, insofar as practicable, any violation by its	1513
licensed investment officers and other persons employed by the	1514
public employees retirement system;	1515

(2) Reasonably discharged the duties and obligations	1516
incumbent on the chief investment officer by reason of the	1517
established procedures and the system for applying the procedures	1518
when the officer had no reasonable cause to believe that there was	1519
a failure to comply with the procedures and systems;	1520

(3) Reviewed, at least annually, the adequacy of the policies	1521
and procedures established pursuant to this section and the	1522
effectiveness of their implementation.	1523

(C) The chief investment officer shall ensure that securities	1524
transactions are executed in such a manner that the state	1525
retirement system's total costs or proceeds in each transaction	1526
are the most favorable under the circumstances.	1527

For purposes of this division, no chief investment officer	1528
shall be considered to have failed to satisfy the officer's duty	1529
of best execution if the officer has done both of the following:	1530

(1) Adopted and implemented a written policy that outlines	1531
the criteria used to select broker-dealers that execute securities	1532
transactions on behalf of the public employees retirement system,	1533
which criteria shall include all of the following:	1534

(a) Commissions charged by the broker-dealer, both in the	1535
aggregate and on a per share basis;	1536

(b) The execution speed and trade settlement capabilities of	1537
the broker-dealer;	1538

(c) The responsiveness, reliability and integrity of the	1539
broker-dealer;	1540

(d) The nature and value of research provided by the	1541
broker-dealer;	1542

(e) Any special capabilities of the broker-dealer.

1543

(2) Reviewed, at least annually, the performance of	1544
broker-dealers that execute securities transactions on behalf of	1545
the public employees retirement system.	1546

Sec. 145.27.  (A)(1) As used in this division, "personal	1547
history record" means information maintained by the public	1548
employees retirement board on an individual who is a member,	1549
former member, contributor, former contributor, retirant, or	1550
beneficiary that includes the address, telephone number, social	1551
security number, record of contributions, correspondence with the	1552
public employees retirement system, or other information the board	1553
determines to be confidential.	1554

(2) The records of the board shall be open to public	1555
inspection, except that the following shall be excluded, except	1556
with the written authorization of the individual concerned:	1557

(a) The individual's statement of previous service and other	1558
information as provided for in section 145.16 of the Revised Code;	1559

(b) The amount of a monthly allowance or benefit paid to the	1560
individual;	1561

(c) The individual's personal history record.

1562

(B) All medical reports and recommendations required by this	1563
chapter are privileged, except that copies of such medical reports	1564
or recommendations shall be made available to the personal	1565
physician, attorney, or authorized agent of the individual	1566
concerned upon written release from the individual or the	1567
individual's agent, or when necessary for the proper	1568
administration of the fund, to the board assigned physician.	1569

(C) Any person who is a member or contributor of the system	1570
shall be furnished with a statement of the amount to the credit of	1571
the individual's account upon written request. The board is not	1572
required to answer more than one such request of a person in any	1573
one year. The board may issue annual statements of accounts to	1574
members and contributors.	1575

(D) Notwithstanding the exceptions to public inspection in	1576
division (A)(2) of this section, the board may furnish the	1577
following information:	1578

(1) If a member, former member, contributor, former	1579
contributor, or retirant is subject to an order issued under	1580
section 2907.15 of the Revised Code or is convicted of or pleads	1581
guilty to a violation of section 2921.41 of the Revised Code, on	1582
written request of a prosecutor as defined in section 2935.01 of	1583
the Revised Code, the board shall furnish to the prosecutor the	1584
information requested from the individual's personal history	1585
record.	1586

(2) Pursuant to a court or administrative order issued	1587
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised	1588
Code, the board shall furnish to a court or child support	1589
enforcement agency the information required under that section.	1590

(3) At the written request of any person, the board shall	1591
provide to the person a list of the names and addresses of	1592
members, former members, contributors, former contributors,	1593
retirants, or beneficiaries. The costs of compiling, copying, and	1594
mailing the list shall be paid by such person.	1595

(4) Within fourteen days after receiving from the director of	1596
job and family services a list of the names and social security	1597
numbers of recipients of public assistance pursuant to section	1598
5101.181 of the Revised Code, the board shall inform the auditor	1599
of state of the name, current or most recent employer address, and	1600
social security number of each member whose name and social	1601
security number are the same as that of a person whose name or	1602
social security number was submitted by the director. The board	1603
and its employees shall, except for purposes of furnishing the	1604
auditor of state with information required by this section,	1605
preserve the confidentiality of recipients of public assistance in	1606
compliance with division (A) of section 5101.181 of the Revised	1607
Code.	1608

(5) The system shall comply with orders issued under section	1609
3105.87 of the Revised Code.	1610

On the written request of an alternate payee, as defined in	1611
section 3105.80 of the Revised Code, the system shall furnish to	1612
the alternate payee information on the amount and status of any	1613
amounts payable to the alternate payee under an order issued under	1614
section 3105.171 or 3105.65 of the Revised Code.	1615

(6) At the request of any person, the board shall make	1616
available to the person copies of all documents, including	1617
resumes, in the board's possession regarding filling a vacancy of	1618
an employee member or retirant member of the board. The person who	1619
made the request shall pay the cost of compiling, copying, and	1620
mailing the documents. The information described in this division	1621
is a public record.	1622

(7) The board shall furnish those personal history records	1623
kept by the board to the secretary of state necessary for the	1624
purposes of certifying an election pursuant to section 111.30 of	1625
the Revised Code. The records provided pursuant to this division	1626
shall remain confidential while in the possession of the secretary	1627
of state.	1628

(E) A statement that contains information obtained from the	1629
system's records that is signed by the executive director or an	1630
officer of the system and to which the system's official seal is	1631
affixed, or copies of the system's records to which the signature	1632
and seal are attached, shall be received as true copies of the	1633
system's records in any court or before any officer of this state.	1634

Sec. 145.99. (A) Whoever violates division (A) of section	1635
145.054 of the Revised Code shall be fined not more than one	1636
hundred dollars for each day of the violation.	1637

(B) Whoever violates division (B) of section 145.054 of the	1638
Revised Code shall be imprisoned for not more than six months or	1639
fined not more than five thousand dollars, or both.	1640

(C) Fines imposed by the Ohio elections commission under this	1641
section shall be paid into the Ohio elections commission fund	1642
created under section 3513.10 of the Revised Code.	1643

Sec. 171.01. ThereAs used in this chapter, "state	1644
retirement systems" means the public employees retirement system,	1645
Ohio police and fire pension fund, state teachers retirement	1646
system, school employees retirement system, and state highway	1647
patrol retirement system.	1648

There is hereby created the Ohio retirement study council,	1649
consisting of fourteen members to. Members of the council shall be	1650
appointed as follows:	1651

(A) Three members of the senate, appointed by the president	1652
of the senate, not more than two of whom may be members of the	1653
same political party;	1654

(B) Three members of the house of representatives, appointed	1655
by the speaker of the house of representatives, not more than two	1656
of whom may be members of the same political party;	1657

(C) Two members, each of whom shall be a former member of the	1658
general assembly who, while a member of the general assembly,	1659
served at least one term as a member of the council or served as a	1660
member of a standing committee or subcommittee of the senate or	1661
house of representatives with primary responsibility for health or	1662
retirement legislation. One member shall be jointly appointed by	1663
the speaker of the house of representatives and the leader in the	1664
senate of the political party of which the speaker is a member.	1665
The other member shall be jointly appointed by the legislative	1666
leaders in the two houses of the major political party of which	1667
the speaker is not a member. The members shall not be members of	1668
the same political party.	1669

The members shall be appointed at the same time as the	1670
members appointed under division (B) of this section and shall	1671
serve until the thirty-first day of December of the following	1672
year.	1673

(D) Three members appointed by the governor, with the advice	1674
and consent of the senate, not more than two of whom shall be	1675
members of the same political party, one of whom shall represent	1676
the state and its employees; one of whom shall represent nonstate	1677
governments and their employees; and one of whom shall represent	1678
educational employers and their employees. Of these three members,	1679
at least one shall be a person with investment expertise. Terms of	1680
the existing members appointed by the governor shall not be	1681
affected. Terms of office of members appointed by the governor	1682
shall be for three years, commencing on the first day of July and	1683
ending on the thirtieth day of June. Each member appointed by the	1684
governor shall hold office from the date of appointment until the	1685
end of the term for which the appointment was made. Any member	1686
appointed by the governor to fill a vacancy occurring prior to the	1687
expiration of the term for which the member's predecessor was	1688
appointed shall hold office for the remainder of such term. Any	1689
Each member appointed by the governor shall continue in office	1690
subsequent to the expiration date of the member's term until the	1691
member's successor takes office, or until a period of sixty days	1692
has elapsed, whichever occurs firstuntil the member's successor	1693
is appointed and qualified, notwithstanding the expiration of the	1694
member's term of office.	1695

(D)(E) Five ex officio members as follows: the executive	1696
director of the public employees retirement system, the executive	1697
director of the state teachers retirement system, the executive	1698
director of the school employees retirement system, the executive	1699
secretary of the Ohio police and fire pension fund, and the	1700
secretary of the state highway patrol retirement board, who shall	1701
be nonvoting members.	1702

A vacancy on the council shall be filled by the person	1703
qualified to make the original appointment for the unexpired term,	1704
in the same manner as the original appointment.	1705

The members of the council who are appointed from the	1706
membership of the senate and the house of representatives shall	1707
serve during their terms as members of the general assembly and	1708
until their successors are appointed and qualified,	1709
notwithstanding the adjournment of the general assembly of which	1710
they are members or the expiration of their terms as members of	1711
such general assembly.	1712

The members of the council who are former members of the	1713
general assembly shall serve until their successors are appointed	1714
and qualified, notwithstanding the adjournment of the general	1715
assembly during which they were appointed or the expiration of	1716
their terms as members of the council.	1717

Sec. 171.02.  Meetings of the Ohio retirement study council	1718
shall be called in such manner and at such times as prescribed by	1719
rules adopted by the council. A majority of the council	1720
constitutes a quorum and no action shall be taken by the council	1721
unless approved by at least fivesix voting members. The council	1722
shall organize by selecting a chairperson, vice-chairperson, and	1723
such other officers as it deems necessary. The council shall adopt	1724
rules for the conduct of its business and the election of its	1725
officers, and shall establish an office in Columbus. Each member	1726
of the council, before entering upon the member's official duties	1727
shall take and subscribe to an oath of office, to uphold the	1728
constitution and laws of the United States and this state and to	1729
perform the duties of the office honestly, faithfully, and	1730
impartially. Members of the council shall serve without	1731
compensation but shall be reimbursed for actual and necessary	1732
expenses incurred in the performance of their duties.	1733

Sec. 171.03.  The Ohio retirement study council may:

1734

(A) Appoint a director to manage and direct the duties of the	1735
staff of the council. The director shall be a person who has had	1736
training and experience in areas related to the duties of the	1737
council.	1738

(B) Appoint such professional, technical, and clerical	1739
employees as are necessary, and employ or hire on a consulting	1740
basis such actuarial, legal, investment, or other technical	1741
services required for the performance of its duties;	1742

(C) Fix the compensation of the director and all other	1743
employees of the council. The employees of the council shall be	1744
members of the public employees retirement system.	1745

(D) Require the public employees retirement board, the state	1746
teachers retirement board, the school employees retirement board,	1747
the state highway patrol retirement system, the Ohio police and	1748
fire pension fund, and any agency or official of this state or its	1749
political subdivisions to provide it with any information	1750
necessary to carry out its duties;	1751

(E) Administer oaths and hold public hearings at such times	1752
and places within the state as may be necessary to accomplish the	1753
purposes and intent of Chapter 171. of the Revised Code;	1754

(F) Establish a uniform format for any report that the boards	1755
of the state retirement systems are required to submit to the	1756
council and regular reporting requirements;	1757

(G) Request that the auditor of state perform or contract for	1758
the performance of a financial or special audit of a state	1759
retirement system.	1760

Sec. 171.04.  The Ohio retirement study council shall:

1761

(A) Make an impartial review from time to time of all laws	1762
governing the administration and financing of the pension and	1763
retirement funds under Chapters 145., 146., 742., 3307., 3309.,	1764
and 5505. of the Revised Code and recommend to the general	1765
assembly any changes it may find desirable with respect to the	1766
allowances and benefits, sound financing of the cost of benefits,	1767
the prudent investment of funds, and the improvement of the	1768
language, structure, and organization of the laws;	1769

(B) Make an annual report to the governor and to the general	1770
assembly covering its evaluation and recommendations with respect	1771
to the operations of the state retirement systems and their funds;	1772

(C) Study all changes in the retirement laws proposed to the	1773
general assembly and report to the general assembly on their	1774
probable costs, actuarial implications, and desirability as a	1775
matter of public policy;	1776

(D) Review semiannually the policies, objectives, and	1777
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15,	1778
and 5505.06 of the Revised Code for the operation of the	1779
investment programs of the state retirement systems, including a	1780
review of asset allocation targets and ranges, risk factors, asset	1781
class benchmarks, time horizons, total return objectives, relative	1782
volatility, and performance evaluation guidelines. The council	1783
shall, not later than thirty days after completing a review,	1784
submit to the governor and the general assembly a report	1785
summarizing its findings.	1786

(E) Have prepared by an independent actuary, at least once	1787
every ten years, an actuarial review of the annual actuarial	1788
valuations and quinquennial actuarial investigations prepared	1789
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of	1790
the Revised Code, including a review of the actuarial assumptions	1791
and methods, the data underlying the valuations and	1792
investigations, and the adequacy of each system's employee and	1793
employer contribution rates to amortize its unfunded actuarial	1794
pension liability, if any, and to support the payment of benefits	1795
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the	1796
Revised Code. The council shall submit to the governor and the	1797
general assembly a report summarizing the review.	1798

(F) Have conducted by an independent auditor at least once	1799
every five years a fiduciary performance audit of each of the	1800
state retirement systems.	1801

All costs associated with an audit conducted pursuant to	1802
division (F) of this section shall be paid by the retirement	1803
system audited.	1804

(G) Review all proposed rules submitted to the council	1805
pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04	1806
of the Revised Code and submit any recommendations to the joint	1807
committee on agency rule review.	1808

Sec. 171.06. The attorney general is the legal adviser to the	1809
Ohio retirement study council.	1810

Sec. 171.50. The boards of the state retirement systems shall	1811
jointly develop a retirement board member education program and	1812
submit the program to the Ohio retirement study council.	1813

The boards shall jointly pay all costs associated with	1814
establishing and conducting the retirement board member education	1815
program.	1816

The retirement board member education program shall consist	1817
of an orientation component for newly elected and appointed	1818
members and a continuing education component for board members who	1819
have served for at least one year. The program shall incorporate	1820
into its curriculum each of the following topics: board member	1821
duties and responsibilities, retirement system member benefits and	1822
health care management, ethics, governance processes and	1823
procedures, actuarial soundness, investments, and any other	1824
subject matter the boards believe is reasonably related to the	1825
duties of a board member.	1826

All program sessions, classes, and other events shall be held	1827
in Ohio.	1828

Sec. 742.03.  (A) As used in this section and in sections	1829
742.04 and 742.05 of the Revised Code:	1830

(1) "Police officer" means a member of the fund who is or has	1831
been an employee of a police department and is not a police	1832
retirant.	1833

(2) "Firefighter" means a member of the fund who is or has	1834
been an employee of a fire department and is not a firefighter	1835
retirant.	1836

(3) "Firefighter retirant" means a member of the fund who is	1837
receiving an age and service or disability benefit as a result of	1838
service in a fire department or a surviving spouse of a deceased	1839
member who is receiving a benefit as a result of the deceased	1840
member's service in a fire department. "Firefighter retirant" does	1841
not include a member of the fund who is participating in the	1842
deferred retirement option plan established under section 742.43	1843
of the Revised Code.	1844

(4) "Police retirant" means a member of the fund who is	1845
receiving an age and service or disability benefit as a result of	1846
service in a police department or a surviving spouse of a deceased	1847
member who is receiving a benefit as a result of the deceased	1848
member's service in a police department. "Police retirant" does	1849
not include a member of the fund who is participating in the	1850
deferred retirement option plan established under section 742.43	1851
of the Revised Code.	1852

(B) The administration, control, and management of the Ohio	1853
police and fire pension fund, created under section 742.02 of the	1854
Revised Code, is vested in a board of trustees of the Ohio police	1855
and fire pension fund, which shall consist of ninethe following	1856
members as follows:	1857

(1) The attorney generaltreasurer of state;

1858

(2) The auditor of state;

1859

(3) The fiscal officer of a municipal corporation who shall	1860
be appointed by the governor. This member's term shall be for	1861
three years, commencing on the fourth day of June and ending on	1862
the third day of June. The fiscal officer member shall hold office	1863
from the date of appointment until the end of the term for which	1864
appointed. Any fiscal officer member appointed to fill a vacancy	1865
occurring prior to the expiration of the term for which the fiscal	1866
officer member's predecessor was appointed shall hold office for	1867
the remainder of such term. Any fiscal officer member shall	1868
continue in office subsequent to the expiration date of the fiscal	1869
officer member's term until such member's successor takes office,	1870
or until a period of sixty days has elapsed, whichever occurs	1871
first.	1872

(4) Two members, known as the investment expert members, who	1873
shall be appointed by the governor for four-year terms and who	1874
shall have the following qualifications:	1875

(a) Each member shall be a resident of this state.

1876

(b) Within the three years immediately preceding the	1877
appointment, each member shall not have been employed by the	1878
public employees retirement system, police and fire pension fund,	1879
state teachers retirement system, school employees retirement	1880
system, or state highway patrol retirement system or by any	1881
person, partnership, or corporation that has provided to one of	1882
those retirement systems services of a financial or investment	1883
nature, including the management, analysis, supervision, or	1884
investment of assets.	1885

(c) Each member shall have direct experience in the	1886
management, analysis, supervision, or investment of assets.	1887

(5) Four members known as employee members.

1888

Two employee members shall be police officers elected by	1889
police officers. Two employee members shall be firefighters	1890
elected by firefighters. Employee members of the board shall be	1891
elected for terms of four years as provided by section 742.04 of	1892
the Revised Code.	1893

(5)(6) One member known as the firefighter retirant member,	1894
who shall be a resident of this state elected by the firefighter	1895
retirants. The firefighter retirant member shall be elected for a	1896
term of four years as provided by section 742.04 of the Revised	1897
Code.	1898

(6)(7) One member known as the police retirant member, who	1899
shall be a resident of this state elected by the police retirants.	1900
The police retirant member shall be elected for a term of four	1901
years as provided by section 742.04 of the Revised Code.	1902

(C) No employee member of the board who retires while a	1903
member of the board shall be eligible to become a retirant member	1904
for three years after the date of the member's retirement.	1905

(D) The initial investment expert members shall be appointed	1906
and take office not less than ninety days after the effective date	1907
of this amendment. Any investment expert member appointed to fill	1908
a vacancy occurring prior to the expiration of the term for which	1909
the member's predecessor was appointed holds office until the end	1910
of such term. The member continues in office subsequent to the	1911
expiration date of the member's term until the member's successor	1912
takes office, or until a period of sixty days has elapsed,	1913
whichever occurs first.	1914

Sec. 742.031. Each newly elected member of the board of	1915
trustees of the Ohio police and fire pension fund and each	1916
individual appointed to fill a vacancy on the board, shall, not	1917
later than ninety days after commencing service as a board member,	1918
complete the orientation program component of the retirement board	1919
member education program established under section 171.50 of the	1920
Revised Code.	1921

Each member of the board who has served a year or longer as a	1922
board member shall, not less than twice each year, attend one or	1923
more programs that are part of the continuing education component	1924
of the retirement board member education program established under	1925
section 171.50 of the Revised Code.	1926

Sec. 742.032. A person who served as an elected or appointed	1927
member of the board of trustees of the Ohio police and fire	1928
pension fund for one or more entire fiscal years in fiscal years	1929
2000, 2001, or 2002 is ineligible for re-election or reappointment	1930
to the board if the person has accepted reimbursements for travel	1931
and travel-related expenses from the board that have an annual	1932
average of more than ten thousand dollars for those fiscal years.	1933

Sec. 742.04.  As used in this section, "county" means the	1934
county of residence of an individual who signs a nominating	1935
petition.	1936

Election of the employee members, firefighter retirant	1937
member, and police retirant member of the board of trustees of the	1938
Ohio police and fire pension fund shall be under the supervision	1939
and direction of the board in accordance with rules adopted under	1940
section 111.30 of the Revised Code.	1941

Nominating petitions for candidates for an employee member of	1942
the board elected by police officers shall be signed by at least	1943
one hundred police officers, with at least twenty signers from	1944
each of at least five counties of the state, and certified under	1945
section 111.30 of the Revised Code.	1946

Nominating petitions for candidates for an employee member of	1947
the board elected by firefighters shall be signed by at least one	1948
hundred firefighters, with at least twenty signers from each of at	1949
least five counties of the state, and certified under section	1950
111.30 of the Revised Code.	1951

Nominating petitions for candidates for an employee member of	1952
the board shall be filed in the office of the board not later than	1953
four p.m. on the first Monday in April preceding the date of the	1954
expiration of the term of the employee member of the board whose	1955
successor is to be elected.	1956

The board shall determine the sufficiency of the nominating	1957
petitions filed with it and the board's decision shall be final.	1958

The board shall cause ballots to be prepared for the election	1959
of employee members of the board which shall contain the names of	1960
all candidates for whom propercertified nominating petitions have	1961
been filed with the board.	1962

A police officer or firefighter is eligible to vote in an	1963
election if the police officer or firefighter is a member of the	1964
fund on the first Monday in March preceding the date of the	1965
expiration of the term of the employee member of the board whose	1966
successor is to be elected. The board shall determine whether a	1967
member of the fund is eligible to vote at an election and its	1968
decision shall be final.	1969

On or before the first Monday in May preceding the date of	1970
the expiration of the term of the employee member of the board	1971
whose successor is to be elected, the board shall cause ballots to	1972
be sent to each member of the fund who is eligible to vote at such	1973
election to the address of such member as shown on the records of	1974
the board.	1975

Ballots shall be returned to the board not later than the	1976
third Tuesday in May following the date that the ballots were	1977
mailed to the members of the fund eligible to vote at such	1978
election.	1979

The board shall cause the ballots to be counted and shall	1980
declareOn certification of the election results under section	1981
111.30 of the Revised Code, the person receiving the highest	1982
number of votes shall be elected as an employee member of the	1983
board for a term of four years beginning on the first Monday in	1984
June following such election.	1985

Nominating petitions for candidates for the police retirant	1986
member of the board shall be signed by at least fifty police	1987
retirants, with at least ten signers from at least five counties	1988
of the state, and certified under section 111.30 of the Revised	1989
Code.	1990

Nominating petitions for candidates for the firefighter	1991
retirant member of the board shall be signed by at least fifty	1992
firefighter retirants, with at least ten signers from at least	1993
five counties of the state, and certified under section 111.30 of	1994
the Revised Code.	1995

Nominating petitions for candidates for the retirant members	1996
of the board shall be filed in the office of the board not later	1997
than four p.m. on the first Monday in April preceding the date of	1998
the expiration of the term of the retirant member of the board	1999
whose successor is to be elected.	2000

The board shall determine the sufficiency of the nominating	2001
petitions filed with it, and the board's decision shall be final.	2002

The board shall cause ballots to be prepared for the election	2003
of these board members which shall contain the names of all	2004
candidates for whom propercertified nominating petitions have	2005
been filed with the board.	2006

A retirant is eligible to vote in an election if the retirant	2007
is a police retirant or firefighter retirant on the first Monday	2008
in April preceding the date of the expiration of the term of the	2009
retirant member of the board whose successor is to be elected. The	2010
board shall determine whether a police retirant or firefighter	2011
retirant is eligible to vote at an election and its decision shall	2012
be final.	2013

On or before the first Monday in May preceding the date of	2014
the expiration of the term of a retirant member of the board whose	2015
successor is to be elected, the board shall cause ballots to be	2016
sent to each person who is eligible to vote in the election to the	2017
address of the person as shown on the records of the board.	2018

Ballots shall be returned to the board not later than the	2019
third Tuesday in May following the date that the ballots were	2020
mailed to the persons eligible to vote in the election.	2021

The board shall cause the ballots to be counted and shall	2022
declareOn certification of the election results under section	2023
111.30 of the Revised Code, the person receiving the highest	2024
number of votes shall be elected as the police retirant member or	2025
the firefighter retirant member of the board for a term of four	2026
years beginning on the first Monday in June following the	2027
election.	2028

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

2029

(1) "Campaign committee" means a candidate or a combination	2030
of two or more persons authorized by a candidate to receive	2031
contributions and in-kind contributions and make expenditures on	2032
behalf of the candidate.	2033

(2) "Candidate" means an individual who has been nominated	2034
pursuant to section 742.04 of the Revised Code for election to the	2035
board of trustees of the Ohio police and fire pension fund or who	2036
is seeking to be elected to fill a vacancy on the board pursuant	2037
to section 742.05 of the Revised Code.	2038

(3) "Contribution" means a loan, gift, deposit, forgiveness	2039
of indebtedness, donation, advance, payment, transfer of funds or	2040
transfer of anything of value including a transfer of funds from	2041
an inter vivos or testamentary trust or decedent's estate, and the	2042
payment by any person other than the person to whom the services	2043
are rendered for the personal services of another person, which	2044
contribution is made, received, or used for the purpose of	2045
influencing the results of an election to the board of trustees of	2046
the Ohio police and fire pension fund under section 742.04 of the	2047
Revised Code or the results of an election to fill a vacancy on	2048
the board pursuant to section 742.05 of the Revised Code.	2049
"Contribution" does not include:	2050

(a) Services provided without compensation by individuals	2051
volunteering a portion or all of their time on behalf of a person;	2052

(b) Ordinary home hospitality;

2053

(c) The personal expenses of a volunteer paid for by that	2054
volunteer campaign worker.	2055

(4) "Election day" means the following, as appropriate to the	2056
situation:	2057

(a) The third Tuesday in May of a year for which section	2058
742.04 of the Revised Code specifies that an election for a member	2059
of the board of trustees of the Ohio police and fire pension fund	2060
be held;	2061

(b) If, pursuant to section 742.041 of the Revised Code, no	2062
election is held, the third Tuesday in May of a year that the	2063
election would have been held if not for section 742.041 of the	2064
Revised Code.	2065

(5) "Expenditure" means the disbursement or use of a	2066
contribution for the purpose of influencing the results of an	2067
election to the board of trustees of the Ohio police and fire	2068
pension fund under section 742.04 of the Revised Code or the	2069
results of an election to fill a vacancy on the board pursuant to	2070
section 742.05 of the Revised Code.	2071

(6) "Independent expenditure" means an expenditure by an	2072
individual, partnership, or other entity advocating the election	2073
or defeat of an identified candidate or candidates, that is not	2074
made with the consent of, in coordination, cooperation, or	2075
consultation with, or at the request or suggestion of any	2076
candidate or candidates or of the campaign committee or agent of	2077
the candidate or candidates. An independent expenditure shall not	2078
be construed as being a contribution. As used in division (A)(6)	2079
of this section:	2080

(a) "Advocating" means any communication containing a message	2081
advocating election or defeat.	2082

(b) "Identified candidate" means that the name of the	2083
candidate appears, a photograph or drawing of the candidate	2084
appears, or the identity of the candidate is otherwise apparent by	2085
unambiguous reference.	2086

(c) "Made in coordination, cooperation, or consultation with,	2087
or at the request or suggestion of, any candidate or the campaign	2088
committee or agent of the candidate" means made pursuant to any	2089
arrangement, coordination, or direction by the candidate, the	2090
candidate's campaign committee, or the candidate's agent prior to	2091
the publication, distribution, display, or broadcast of the	2092
communication. An expenditure is presumed to be so made when it is	2093
any of the following:	2094

(i) Based on information about the candidate's plans,	2095
projects, or needs provided to the person making the expenditure	2096
by the candidate, or by the candidate's campaign committee or	2097
agent, with a view toward having an expenditure made;	2098

(ii) Made by or through any person who is, or has been,	2099
authorized to raise or expend funds, who is, or has been, an	2100
officer of the candidate's campaign committee, or who is, or has	2101
been, receiving any form of compensation or reimbursement from the	2102
candidate or the candidate's campaign committee or agent;	2103

(iii) Made by a political party in support of a candidate,	2104
unless the expenditure is made by a political party to conduct	2105
voter registration or voter education efforts.	2106

(d) "Agent" means any person who has actual oral or written	2107
authority, either express or implied, to make or to authorize the	2108
making of expenditures on behalf of a candidate, or means any	2109
person who has been placed in a position with the candidate's	2110
campaign committee or organization such that it would reasonably	2111
appear that in the ordinary course of campaign-related activities	2112
the person may authorize expenditures.	2113

(7) "In-kind contribution" means anything of value other than	2114
money that is used to influence the results of an election to the	2115
board of trustees of the Ohio police and fire pension fund under	2116
section 742.04 of the Revised Code or the results of an election	2117
to fill a vacancy on the board pursuant to section 742.05 of the	2118
Revised Code or is transferred to or used in support of or in	2119
opposition to a candidate and that is made with the consent of, in	2120
coordination, cooperation, or consultation with, or at the request	2121
or suggestion of the benefited candidate. The financing of the	2122
dissemination, distribution, or republication, in whole or part,	2123
of any broadcast or of any written, graphic, or other form of	2124
campaign materials prepared by the candidate, the candidate's	2125
campaign committee, or their authorized agents is an in-kind	2126
contribution to the candidate and an expenditure by the candidate.	2127

(8) "Personal expenses" includes ordinary expenses for	2128
accommodations, clothing, food, personal motor vehicle or	2129
airplane, and home telephone.	2130

(B) Except as otherwise provided in division (D) of this	2131
section, each candidate who, or whose campaign committee, receives	2132
a contribution or in-kind contribution or makes an expenditure in	2133
connection with the candidate's efforts to be elected to the board	2134
of trustees of the Ohio police and fire pension fund shall file	2135
with the secretary of state two complete, accurate, and itemized	2136
statements setting forth in detail the contributions, in-kind	2137
contributions, and expenditures. The statements shall be filed	2138
regardless of whether, pursuant to section 742.041 of the Revised	2139
Code, no election is held. The statements shall be made on a form	2140
prescribed under section 111.30 of the Revised Code. Every	2141
expenditure shall be vouched for by a receipted bill, stating the	2142
purpose of the expenditures, that shall be filed with the	2143
statement; a canceled check with a notation of the purpose of the	2144
expenditure is a receipted bill for purposes of this division.	2145

The first statement shall be filed not later than four p.m.	2146
on the day that is twelve days before election day. The second	2147
statement shall be filed not sooner than the day that is eight	2148
days after election day and not later than thirty-eight days after	2149
election day. The first statement shall reflect contributions and	2150
in-kind contributions received and expenditures made to the close	2151
of business on the twentieth day before election day. The second	2152
statement shall reflect contributions and in-kind contributions	2153
received and expenditures made during the period beginning on the	2154
nineteenth day before election day and ending on the close of	2155
business on the seventh day after election day.	2156

(C) Each individual, partnership, or other entity who makes	2157
an independent expenditure in connection with the candidate's	2158
efforts to be elected to the board of trustees of the police and	2159
fire pension fund shall file with the secretary of state two	2160
complete, accurate, and itemized statements setting forth in	2161
detail the independent expenditures. The statements shall be filed	2162
regardless of whether, pursuant to section 742.041 of the Revised	2163
Code, no election is held. The statements shall be made on a form	2164
prescribed under section 111.30 of the Revised Code.	2165

The first statement shall be filed not later than four p.m.	2166
on the day that is twelve days before election day. The second	2167
statement shall be filed not sooner than the day that is eight	2168
days after election day and not later than thirty-eight days after	2169
election day. The first statement shall reflect independent	2170
expenditures made to the close of business on the twentieth day	2171
before election day. The second statement shall reflect	2172
independent expenditures made during the period beginning on the	2173
nineteenth day before election day and ending on the close of	2174
business on the seventh day after election day.	2175

(D) Each candidate who, or whose campaign committee, receives	2176
a contribution or in-kind contribution or makes an expenditure in	2177
connection with the candidate's efforts to be elected to fill a	2178
vacancy in the board of trustees of the police and fire pension	2179
fund pursuant to section 742.05 of the Revised Code shall file	2180
with the secretary of state a complete, accurate, and itemized	2181
statement setting forth in detail the contributions, in-kind	2182
contributions, and expenditures. The statement shall be made on a	2183
form prescribed under section 111.30 of the Revised Code. Every	2184
expenditure shall be vouched for by a receipted bill, stating the	2185
purpose of the expenditures, that shall be filed with the	2186
statement; a canceled check with a notation of the purpose of the	2187
expenditure is a receipted bill for purposes of this division.	2188

The statement shall be filed within thirty-eight days after	2189
the day the candidate takes office. The statement shall reflect	2190
contributions and in-kind contributions received and expenditures	2191
made to the close of business on the seventh day after the day the	2192
candidate takes office.	2193

Sec.  742.043.  (A) No person shall knowingly fail to file a	2194
complete and accurate campaign finance statement or independent	2195
expenditure statement in accordance with section 742.042 of the	2196
Revised Code.	2197

(B) No person, during the course of a person seeking	2198
nomination for, and during any campaign for, election to the board	2199
of trustees of the police and fire pension fund, shall knowingly	2200
and with intent to affect the nomination or the outcome of the	2201
campaign do any of the following by means of campaign materials,	2202
an advertisement on radio or television or in a newspaper or	2203
periodical, a public speech, press release, or otherwise:	2204

(1) With regard to a candidate, identify the candidate in a	2205
manner that implies that the candidate is a member of the board or	2206
use the term "re-elect" when the candidate is not currently a	2207
member of the board;	2208

(2) Make a false statement concerning the formal schooling or	2209
training completed or attempted by a candidate; a degree, diploma,	2210
certificate, scholarship, grant, award, prize, or honor received,	2211
earned, or held by a candidate; or the period of time during which	2212
a candidate attended any school, college, community technical	2213
school, or institution;	2214

(3) Make a false statement concerning the professional,	2215
occupational, or vocational licenses held by a candidate, or	2216
concerning any position the candidate held for which the candidate	2217
received a salary or wages;	2218

(4) Make a false statement that a candidate or public	2219
official has been indicted or convicted of a theft offense,	2220
extortion, or other crime involving financial corruption or moral	2221
turpitude;	2222

(5) Make a statement that a candidate has been indicted for	2223
any crime or has been the subject of a finding by the Ohio	2224
elections commission without disclosing the outcome of any legal	2225
proceedings resulting from the indictment or finding;	2226

(6) Make a false statement that a candidate or official has a	2227
record of treatment or confinement for mental disorder;	2228

(7) Make a false statement that a candidate or official has	2229
been subjected to military discipline for criminal misconduct or	2230
dishonorably discharged from the armed services;	2231

(8) Falsely identify the source of a statement, issue	2232
statements under the name of another person without authorization,	2233
or falsely state the endorsement of or opposition to a candidate	2234
by a person or publication;	2235

(9) Make a false statement concerning the voting record of a	2236
candidate or public official;	2237

(10) Post, publish, circulate, distribute, or otherwise	2238
disseminate a false statement concerning a candidate, either	2239
knowing the same to be false or with reckless disregard of whether	2240
it was false or not, if the statement is designed to promote the	2241
election, nomination, or defeat of the candidate.	2242

Sec. 742.044.  The secretary of state, or any person acting	2243
on personal knowledge and subject to the penalties of perjury, may	2244
file a complaint with the Ohio elections commission alleging a	2245
violation of section 742.043 of the Revised Code. The complaint	2246
shall be made on a form prescribed and provided by the commission.	2247

On receipt of a complaint under this section, the commission	2248
shall hold a hearing open to the public to determine whether the	2249
violation alleged in the complaint has occurred. The commission	2250
may administer oaths and issue subpoenas to any person in the	2251
state compelling the attendance of witnesses and the production of	2252
relevant papers, books, accounts, and reports. On the refusal of	2253
any person to obey a subpoena or to be sworn or to answer as a	2254
witness, the commission may apply to the court of common pleas of	2255
Franklin county under section 2705.03 of the Revised Code. The	2256
court shall hold contempt proceedings in accordance with Chapter	2257
2705. of the Revised Code.	2258

The commission shall provide the person accused of the	2259
violation at least seven days prior notice of the time, date, and	2260
place of the hearing. The accused may be represented by an	2261
attorney and shall have an opportunity to present evidence, call	2262
witnesses, and cross-examine witnesses.	2263

At the hearing, the commission shall determine whether the	2264
violation alleged in the complaint has occurred. If the commission	2265
determines that a violation of division (A) of section 742.043 of	2266
the Revised Code has occurred, the commission shall either impose	2267
a fine under section 742.99 of the Revised Code or enter a finding	2268
that good cause has been shown not to impose the fine. If the	2269
commission determines that a violation of division (B) of section	2270
742.043 of the Revised Code has occurred, the commission shall	2271
impose the fine described in section 742.99 of the Revised Code,	2272
refer the matter to the appropriate prosecutor, or enter a finding	2273
that good cause has been shown not to impose a fine or refer the	2274
matter to a prosecutor.	2275

Sec. 742.046. An employee member, firefighter retirant	2276
member, or police retirant member of the board of trustees of the	2277
police and fire pension fund who is charged with committing a	2278
felony, a theft offense as defined in section 2913.01 of the	2279
Revised Code, or a violation of section 102.02, 102.03, 102.04,	2280
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or	2281
2921.44 of the Revised Code shall be suspended from participation	2282
on the board for the period during which the charges are pending.	2283
If the charges are dismissed, the member is found not guilty, or	2284
the charges are otherwise resolved in a manner not resulting in	2285
the member being convicted of or pleading guilty to an offense of	2286
that nature, the suspension shall end, and the member may	2287
participate on the board. If the member pleads guilty to or is	2288
convicted of the offense, the position of the member on the board	2289
shall be deemed vacant. A person who has pleaded guilty to or been	2290
convicted of an offense of that nature is ineligible for election	2291
to the office of employee member, firefighter retirant member, or	2292
police retirant member of the board of trustees of the police and	2293
fire pension fund.	2294

Sec. 742.05.  Any vacancy occurring in the term of a member	2295
of the board of trustees of the Ohio police and fire pension fund	2296
who is the fiscal officer of a municipal corporation shall be	2297
filled by appointment by the governor for the unexpired term of	2298
such member.	2299

AnyIf a vacancy occurringoccurs in the term of an employee	2300
or retirant member of the board shall be filled by, all the	2301
remaining employee members and the retirant members of the board	2302
for the unexpired term of suchshall elect a successor employee or	2303
retirant member. On certification of the election results under	2304
section 111.30 of the Revised Code, the successor member shall	2305
hold office until the next board election that occurs not less	2306
than ninety days after the successor member's election.	2307

Any vacancy occurring in the term of a retirant member of the	2308
board shall be filled by the employee members and the remaining	2309
retirant member of the board for the unexpired term.	2310

Elections under this section to fill a vacancy on the board	2311
shall be conducted under the supervision of the secretary of state	2312
pursuant to section 111.30 of the Revised Code.	2313

If a member of the board who is the fiscal officer of a	2314
municipal corporation ceases to be a fiscal officer of a municipal	2315
corporation, a vacancy shall exist.	2316

If an employee member of the board ceases to be a member of	2317
the fund, a vacancy shall exist.	2318

If as a result of changed circumstances a retirant member no	2319
longer qualifies for membership on the board as a retirant member,	2320
a vacancy shall exist.	2321

Any employee or retirantelected or appointed member of the	2322
board or member of the board who is the fiscal officer of a	2323
municipal corporation who fails to attend three consecutive	2324
meetings of the board, without valid excuse, shall be considered	2325
as having resigned from the board and the board shall declare the	2326
member's office vacated and as of the date of the adoption of a	2327
proper resolution a vacancy shall exist.	2328

Sec. 742.10.  The board of trustees of the Ohio police and	2329
fire pension fund may sue and be sued, plead and be impleaded,	2330
contract and be contracted with, employ and fix the compensation	2331
of employees, and adopt rules for the proper administration and	2332
management of the fund.	2333

Effective ninety days after the effective date of this	2334
amendment, the board of trustees may not employ a state retirement	2335
system investment officer, as defined in section 1707.01 of the	2336
Revised Code, who does not hold a valid state retirement system	2337
investment officer license issued by the division of securities in	2338
the department of commerce.	2339

If the Ohio retirement study council establishes a uniform	2340
format for any report the board is required to submit to the	2341
council, the board shall submit the report in that format.	2342

The attorney general shall prescribe procedures for the	2343
adoption of rules authorized under this chapter, consistent with	2344
the provisions of section 111.15 of the Revised Code under which	2345
all rules shall be filed in order to be effective. Such procedures	2346
shall establish methods by which notice of proposed rules is given	2347
to interested parties and rules adopted by the board published and	2348
otherwise made available. When it files a rule with the joint	2349
committee on agency rule review pursuant to section 111.15 of the	2350
Revised Code, the board shall submit to the Ohio retirement study	2351
council a copy of the full text of the rule, and if applicable, a	2352
copy of the rule summary and fiscal analysis required by division	2353
(B) of section 127.18 of the Revised Code.	2354

All rules adopted pursuant to this chapter, prior to August	2355
20, 1976, shall be published and made available to interested	2356
parties by January 1, 1977.	2357

Sec. 742.102.  The board of trustees of the police and fire	2358
pension fund shall do all of the following:	2359

(A) In consultation with the Ohio ethics commission, review	2360
any existing policy regarding the travel and payment of travel	2361
expenses of members of the board of trustees and employees of the	2362
fund and adopt rules in accordance with section 742.10 of the	2363
Revised Code establishing a new or revised policy regarding travel	2364
and payment of travel expenses;	2365

(B) If the board intends to award a bonus to any employee of	2366
the board, adopt rules in accordance with section 742.10 of the	2367
Revised Code establishing a policy regarding employee bonuses;	2368

(C) Provide copies of the rules adopted under divisions (A)	2369
and (B) of this section to each member of the Ohio retirement	2370
study council;	2371

(D) Submit to the Ohio retirement study council a proposed	2372
operating budget, including an administrative budget for the	2373
board, for the next immediate fiscal year and adopt that budget	2374
not earlier than sixty days after it is submitted to the council;	2375

(E) Submit to the council a plan describing how the board	2376
will improve the dissemination of public information pertaining to	2377
the board.	2378

Sec. 742.103. The board of trustees of the police and fire	2379
pension fund shall, in consultation with the Ohio ethics	2380
commission, develop an ethics policy. The board shall submit this	2381
policy to the Ohio retirement study council for approval.	2382

The council shall review the policy and, if the council	2383
determines, upon the advice of the Ohio ethics commission, that	2384
the policy is adequate, approve the policy. If the council	2385
determines that the policy is inadequate, it shall specify the	2386
revisions to be made and the board shall submit a revised policy.	2387
If the council approves the revised policy, the board shall adopt	2388
it. If not, the board shall make any further revisions required by	2389
the council and adopt the policy.	2390

The board periodically shall provide ethics training to	2391
members and employees of the board. The training shall include	2392
training regarding the requirements and prohibitions of Chapter	2393
102. of the Revised Code and sections 2921.42 and 2921.43 of the	2394
Revised Code and any other training the board considers	2395
appropriate.	2396

The board shall establish a procedure to ensure that each	2397
employee of the board is informed of the procedure for filing a	2398
complaint alleging violation of Chapter 102. of the Revised Code	2399
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	2400
ethics commission or the appropriate prosecuting attorney.	2401

Sec. 742.104.  (A) The board of trustees of the police and	2402
fire pension fund shall designate a person who is a licensed state	2403
retirement system investment officer to be the chief investment	2404
officer for the police and fire pension fund. The board shall	2405
notify the division of securities of the department of commerce in	2406
writing of its designation and of any change in its designation	2407
within ten calendar days of the designation or change.	2408

(B) The chief investment officer shall reasonably supervise	2409
the licensed state retirement system investment officers and other	2410
persons employed by the police and fire pension fund with a view	2411
toward preventing violations of Chapter 1707. of the Revised Code,	2412
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and	2413
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.	2414
and following, and the "Securities Exchange Act of 1934," 48 Stat.	2415
881, 15 U.S.C. 78a, and following, and the rules and regulations	2416
promulgated under those statutes. This duty of reasonable	2417
supervision shall include the adoption, implementation, and	2418
enforcement of written policies and procedures reasonably designed	2419
to prevent persons employed by the police and fire pension fund	2420
from misusing material, nonpublic information in violation of	2421
those laws, rules, and regulations.	2422

For purposes of this division, no chief investment officer	2423
shall be considered to have failed to satisfy the officer's duty	2424
of reasonable supervision if the officer has done all of the	2425
following:	2426

(1) Adopted and implemented written procedures, and a system	2427
for applying the procedures, that would reasonably be expected to	2428
prevent and detect, insofar as practicable, any violation by its	2429
licensed investment officers and other persons employed by the	2430
police and fire pension fund;	2431

(2) Reasonably discharged the duties and obligations	2432
incumbent on the chief investment officer by reason of the	2433
established procedures and the system for applying the procedures	2434
when the officer had no reasonable cause to believe that there was	2435
a failure to comply with the procedures and systems;	2436

(3) Reviewed, at least annually, the adequacy of the policies	2437
and procedures established pursuant to this section and the	2438
effectiveness of their implementation.	2439

(C) The chief investment officer shall ensure that securities	2440
transactions are executed in such a manner that the fund's total	2441
costs or proceeds in each transaction are the most favorable under	2442
the circumstances.	2443

For purposes of this division, no chief investment officer	2444
shall be considered to have failed to satisfy the officer's duty	2445
of best execution if the officer has done both of the following:	2446

(1) Adopted and implemented a written policy that outlines	2447
the criteria used to select broker-dealers that execute securities	2448
transactions on behalf of the police and fire pension fund, which	2449
criteria shall include all of the following:	2450

(a) Commissions charged by the broker-dealer, both in the	2451
aggregate and on a per share basis;	2452

(b) The execution speed and trade settlement capabilities of	2453
the broker-dealer;	2454

(c) The responsiveness, reliability, and integrity of the	2455
broker-dealer;	2456

(d) The nature and value of research provided by the	2457
broker-dealer;	2458

(e) Any special capabilities of the broker-dealer.

2459

(2) Reviewed, at least annually, the performance of	2460
broker-dealers that execute securities transactions on behalf of	2461
the police and fire pension fund.	2462

Sec. 742.38.  (A)(1) The board of trustees of the Ohio police	2463
and fire pension fund shall adopt rules establishing minimum	2464
medical testing and diagnostic standards or procedures to be	2465
incorporated into physical examinations administered by physicians	2466
to prospective members of the fund. The standards or procedures	2467
shall include diagnosis and evaluation of the existence of any	2468
heart disease, cardiovascular disease, or respiratory disease. The	2469
rules shall specify the form of the physician's report and the	2470
information to be included in it.	2471

The board shall notify all employers of the establishment of	2472
the minimum standards or procedures and shall include with the	2473
notice a copy of the standards or procedures. The board shall	2474
notify all employers of any changes made to the standards or	2475
procedures. Once the standards or procedures take effect,	2476
employers shall cause each prospective member of the fund to	2477
submit to a physical examination that incorporates the standards	2478
or procedures.	2479

(2) Division (A)(2) of this section applies to an employee	2480
who becomes a member of the fund on or after the date the minimum	2481
standards or procedures described in division (A)(1) of this	2482
section take effect. For each employee described in division	2483
(A)(2) of this section, the employer shall forward to the board a	2484
copy of the physician's report of a physical examination that	2485
incorporates the standards or procedures described in division	2486
(A)(1) of this section. If an employer fails to forward the report	2487
in the form required by the board on or before the date that is	2488
sixty days after the employee becomes a member of the fund, the	2489
board shall assess against the employer a penalty determined under	2490
section 742.353 of the Revised Code.	2491

(B) Application for a disability benefit may be made by a	2492
member of the fund or, if the member is incapacitated as defined	2493
in rules adopted by the board, by a person acting on the member's	2494
behalf. Not later than fourteen days after receiving an	2495
application for a disability benefit from a member or a person	2496
acting on behalf of a member, the board shall notify the member's	2497
employer and the chief of police of the police department	2498
employing the member or the chief of the fire department employing	2499
the member, as applicable, that an application has been filed. The	2500
notice shall state the name of the member who filed the	2501
application or on whose behalf the application was filed and the	2502
member's position or rank. The notice and the fact that the	2503
application has been filed shall be confidential. Not later than	2504
twenty-eight days after receiving the notice or filing an	2505
application on behalf of a member, the employer shall forward to	2506
the board a statement certifying the member's job description and	2507
any other information required by the board to process the	2508
application.	2509

If the member applying for a disability benefit becomes a	2510
member of the fund prior to the date the minimum standards or	2511
procedures described in division (A)(1) of this section take	2512
effect, the board may request from the member's employer a copy of	2513
the physician's report of the member's physical examination taken	2514
on entry into the police or fire department or, if the employer	2515
does not have a copy of the report, a written statement certifying	2516
that the employer does not have a copy of the report. If an	2517
employer fails to forward the report or statement in the form	2518
required by the board on or before the date that is twenty-eight	2519
days after the date of the request, the board shall assess against	2520
the employer a penalty determined under section 742.353 of the	2521
Revised Code. The board shall maintain the information submitted	2522
under this division and division (A)(2) of this section in the	2523
member's file.	2524

(C) For purposes of determining under division (D) of this	2525
section whether a member of the fund is disabled, the board shall	2526
adopt rules establishing objective criteria under which the board	2527
shall make the determination. The rules shall include standards	2528
that provide for all of the following:	2529

(1) Evaluating a member's illness or injury on which an	2530
application for disability benefits is based;	2531

(2) Defining the occupational duties of a police officer or	2532
firefighter;	2533

(3) Providing for the board to assign competent and	2534
disinterested physicians and vocational evaluators to conduct	2535
examinations of a member;	2536

(4) Requiring a written report for each disability	2537
application that includes a summary of findings, medical opinions,	2538
including an opinion on whether the illness or injury upon which	2539
the member's application for disability benefits is based was	2540
caused or induced by the actual performance of the member's	2541
official duties, and any recommendations or comments based on the	2542
medical opinions;	2543

(5) Providing for the board to consider the member's	2544
potential for retraining or reemployment.	2545

(D) This division does not apply to members of the fund who	2546
have elected to receive benefits and pensions in accordance with	2547
division (A) or (B) of section 742.37 of the Revised Code or from	2548
a police relief and pension fund or a firemen's relief and pension	2549
fund in accordance with the rules of that fund in force on April	2550
1, 1947.	2551

(1) As used in division (D)(1) of this section:

2552

(a) "Totally disabled" means a member of the fund is unable	2553
to perform the duties of any gainful occupation for which the	2554
member is reasonably fitted by training, experience, and	2555
accomplishments. Absolute helplessness is not a prerequisite of	2556
being totally disabled.	2557

(b) "Permanently disabled" means a condition of disability	2558
from which there is no present indication of recovery.	2559

A member of the fund who is permanently and totally disabled	2560
as the result of the performance of the member's official duties	2561
as a member of a police or fire department shall be paid annual	2562
disability benefits in accordance with division (A) of section	2563
742.39 of the Revised Code. In determining whether a member of the	2564
fund is permanently and totally disabled, the board shall consider	2565
standards adopted under division (C) of this section applicable to	2566
the determination.	2567

(2) A member of the fund who is partially disabled as the	2568
result of the performance of the member's official duties as a	2569
member of a police or fire department shall, if the disability	2570
prevents the member from performing those duties and impairs the	2571
member's earning capacity, receive annual disability benefits in	2572
accordance with division (B) of section 742.39 of the Revised	2573
Code. In determining whether a member of the fund is partially	2574
disabled, the board shall consider standards adopted under	2575
division (C) of this section applicable to the determination.	2576

(3) A member of the fund who is disabled as a result of heart	2577
disease or any cardiovascular or respiratory disease of a chronic	2578
nature, which disease or any evidence of which disease was not	2579
revealed by the physical examination passed by the member on entry	2580
into the department, is presumed to have incurred the disease	2581
while performing the member's official duties, unless the contrary	2582
is shown by competent evidence.	2583

(4) A member of the fund who has completed five or more years	2584
of active service in a police or fire department and has incurred	2585
a disability not caused or induced by the actual performance of	2586
the member's official duties as a member of the department, or by	2587
the member's own negligence, shall if the disability prevents the	2588
member from performing those duties and impairs the member's	2589
earning capacity, receive annual disability benefits in accordance	2590
with division (C) of section 742.39 of the Revised Code. In	2591
determining whether a member of the fund is disabled, the board	2592
shall consider standards adopted under division (C) of this	2593
section applicable to the determination.	2594

(5) The board shall notify a member of its final action	2595
awarding a disability benefit to the member within thirty days of	2596
the final action. The notice shall be sent by certified mail,	2597
return receipt requested. Not later than ninety days after receipt	2598
of notice from the board, the member shall elect, on a form	2599
provided by the board, either to accept or waive the disability	2600
benefit award. If the member elects to waive the disability	2601
benefit award or fails to make an election within the time period,	2602
the award is rescinded. A member who later seeks a disability	2603
benefit award shall be required to make a new application, which	2604
shall be dealt with in accordance with the procedures used for	2605
original disability benefit applications.	2606

A person is not eligible to apply for or receive disability	2607
benefits under this division, section 742.39 of the Revised Code,	2608
or division (C)(2), (3), (4), or (5) of former section 742.37 of	2609
the Revised Code unless the person is a member of the fund on the	2610
date on which the application for disability benefits is submitted	2611
to the fund.	2612

With the exception of persons who may make application for	2613
increased benefits as provided in division (D)(2) or (4) of this	2614
section or division (C)(3) or (5) of former section 742.37 of the	2615
Revised Code on or after July 24, 1986, or persons who may make	2616
application for benefits as provided in section 742.26 of the	2617
Revised Code, no person receiving a pension or benefit under this	2618
section or division (C) of former section 742.37 of the Revised	2619
Code may apply for any new, changed, or different benefit.	2620

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

2621

(1) "Other system retirant" has the same meaning as in	2622
section 742.26 of the Revised Code.	2623

(2) "Personal history record" includes a member's, former	2624
member's, or other system retirant's name, address, telephone	2625
number, social security number, record of contributions,	2626
correspondence with the Ohio police and fire pension fund, status	2627
of any application for benefits, and any other information deemed	2628
confidential by the trustees of the fund.	2629

(B) The treasurer of state shall furnish annually to the	2630
board of trustees of the fund a sworn statement of the amount of	2631
the funds in the treasurer of state's custody belonging to the	2632
Ohio police and fire pension fund. The records of the fund shall	2633
be open for public inspection except for the following, which	2634
shall be excluded, except with the written authorization of the	2635
individual concerned:	2636

(1) The individual's personal history record;

2637

(2) Any information identifying, by name and address, the	2638
amount of a monthly allowance or benefit paid to the individual.	2639

(C) All medical reports and recommendations required are	2640
privileged, except that copies of such medical reports or	2641
recommendations shall be made available to the personal physician,	2642
attorney, or authorized agent of the individual concerned upon	2643
written release received from the individual or the individual's	2644
agent or, when necessary for the proper administration of the	2645
fund, to the board-assigned physician.	2646

(D) Any person who is a member of the fund or an other system	2647
retirant shall be furnished with a statement of the amount to the	2648
credit of the person's individual account upon the person's	2649
written request. The fund need not answer more than one such	2650
request of a person in any one year.	2651

(E) Notwithstanding the exceptions to public inspection in	2652
division (B) of this section, the fund may furnish the following	2653
information:	2654

(1) If a member, former member, or other system retirant is	2655
subject to an order issued under section 2907.15 of the Revised	2656
Code or is convicted of or pleads guilty to a violation of section	2657
2921.41 of the Revised Code, on written request of a prosecutor as	2658
defined in section 2935.01 of the Revised Code, the fund shall	2659
furnish to the prosecutor the information requested from the	2660
individual's personal history record.	2661

(2) Pursuant to a court order issued pursuant to Chapter	2662
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall	2663
furnish to a court or child support enforcement agency the	2664
information required under that section.	2665

(3) At the request of any organization or association of	2666
members of the fund, the fund shall provide a list of the names	2667
and addresses of members of the fund and other system retirants.	2668
The fund shall comply with the request of such organization or	2669
association at least once a year and may impose a reasonable	2670
charge for the list.	2671

(4) Within fourteen days after receiving from the director of	2672
job and family services a list of the names and social security	2673
numbers of recipients of public assistance pursuant to section	2674
5101.181 of the Revised Code, the fund shall inform the auditor of	2675
state of the name, current or most recent employer address, and	2676
social security number of each member or other system retirant	2677
whose name and social security number are the same as that of a	2678
person whose name or social security number was submitted by the	2679
director. The fund and its employees shall, except for purposes of	2680
furnishing the auditor of state with information required by this	2681
section, preserve the confidentiality of recipients of public	2682
assistance in compliance with division (A) of section 5101.181 of	2683
the Revised Code.	2684

(5) The fund shall comply with orders issued under section	2685
3105.87 of the Revised Code.	2686

On the written request of an alternate payee, as defined in	2687
section 3105.80 of the Revised Code, the fund shall furnish to the	2688
alternate payee information on the amount and status of any	2689
amounts payable to the alternate payee under an order issued under	2690
section 3105.171 or 3105.65 of the Revised Code.	2691

(6) At the request of any person, the fund shall make	2692
available to the person copies of all documents, including	2693
resumes, in the fund's possession regarding filling a vacancy of a	2694
police officer employee member, firefighter employee member,	2695
police retirant member, or firefighter retirant member of the	2696
board of trustees. The person who made the request shall pay the	2697
cost of compiling, copying, and mailing the documents. The	2698
information described in this division is a public record.	2699

(7) The fund shall furnish those personal history records	2700
kept by the fund to the secretary of state necessary for the	2701
purposes of certifying an election pursuant to section 111.30 of	2702
the Revised Code. The records provided pursuant to this division	2703
shall remain confidential while in the possession of the secretary	2704
of state.	2705

(F) A statement that contains information obtained from the	2706
fund's records that is signed by the secretary of the board of	2707
trustees of the Ohio police and fire pension fund and to which the	2708
board's official seal is affixed, or copies of the fund's records	2709
to which the signature and seal are attached, shall be received as	2710
true copies of the fund's records in any court or before any	2711
officer of this state.	2712

Sec. 742.99. (A) Whoever violates section 742.043 of the	2713
Revised Code shall be fined not more than one hundred dollars for	2714
each day of the violation.	2715

(B) Whoever violates division (B) of section 742.043 of the	2716
Revised Code shall be imprisoned for not more than six months or	2717
fined not more than five thousand dollars, or both.	2718

(C) Fines imposed by the Ohio elections commission under this	2719
section shall be paid into the Ohio elections commission fund	2720
created under section 3513.10 of the Revised Code.	2721

Sec. 1707.01.  As used in this chapter:

2722

(A) Whenever the context requires it, "division" or "division	2723
of securities" may be read as "director of commerce" or as	2724
"commissioner of securities."	2725

(B) "Security" means any certificate or instrument, or any	2726
oral, written, or electronic agreement, understanding, or	2727
opportunity, that represents title to or interest in, or is	2728
secured by any lien or charge upon, the capital, assets, profits,	2729
property, or credit of any person or of any public or governmental	2730
body, subdivision, or agency. It includes shares of stock,	2731
certificates for shares of stock, an uncertificated security,	2732
membership interests in limited liability companies, voting-trust	2733
certificates, warrants and options to purchase securities,	2734
subscription rights, interim receipts, interim certificates,	2735
promissory notes, all forms of commercial paper, evidences of	2736
indebtedness, bonds, debentures, land trust certificates, fee	2737
certificates, leasehold certificates, syndicate certificates,	2738
endowment certificates, interests in or under profit-sharing or	2739
participation agreements, interests in or under oil, gas, or	2740
mining leases, preorganization or reorganization subscriptions,	2741
preorganization certificates, reorganization certificates,	2742
interests in any trust or pretended trust, any investment	2743
contract, any life settlement interest, any instrument evidencing	2744
a promise or an agreement to pay money, warehouse receipts for	2745
intoxicating liquor, and the currency of any government other than	2746
those of the United States and Canada, but sections 1707.01 to	2747
1707.45 of the Revised Code do not apply to the sale of real	2748
estate.	2749

(C)(1) "Sale" has the full meaning of "sale" as applied by or	2750
accepted in courts of law or equity, and includes every	2751
disposition, or attempt to dispose, of a security or of an	2752
interest in a security. "Sale" also includes a contract to sell,	2753
an exchange, an attempt to sell, an option of sale, a solicitation	2754
of a sale, a solicitation of an offer to buy, a subscription, or	2755
an offer to sell, directly or indirectly, by agent, circular,	2756
pamphlet, advertisement, or otherwise.	2757

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

2758

(3) The use of advertisements, circulars, or pamphlets in	2759
connection with the sale of securities in this state exclusively	2760
to the purchasers specified in division (D) of section 1707.03 of	2761
the Revised Code is not a sale when the advertisements, circulars,	2762
and pamphlets describing and offering those securities bear a	2763
readily legible legend in substance as follows: "This offer is	2764
made on behalf of dealers licensed under sections 1707.01 to	2765
1707.45 of the Revised Code, and is confined in this state	2766
exclusively to institutional investors and licensed dealers."	2767

(4) The offering of securities by any person in conjunction	2768
with a licensed dealer by use of advertisement, circular, or	2769
pamphlet is not a sale if that person does not otherwise attempt	2770
to sell securities in this state.	2771

(5) Any security given with, or as a bonus on account of, any	2772
purchase of securities is conclusively presumed to constitute a	2773
part of the subject of that purchase and has been "sold."	2774

(6) "Sale" by an owner, pledgee, or mortgagee, or by a person	2775
acting in a representative capacity, includes sale on behalf of	2776
such party by an agent, including a licensed dealer or	2777
salesperson.	2778

(D) "Person," except as otherwise provided in this chapter,	2779
means a natural person, firm, partnership, limited partnership,	2780
partnership association, syndicate, joint-stock company,	2781
unincorporated association, trust or trustee except where the	2782
trust was created or the trustee designated by law or judicial	2783
authority or by a will, and a corporation or limited liability	2784
company organized under the laws of any state, any foreign	2785
government, or any political subdivision of a state or foreign	2786
government.	2787

(E)(1) "Dealer," except as otherwise provided in this	2788
chapter, means every person, other than a salesperson, who engages	2789
or professes to engage, in this state, for either all or part of	2790
the person's time, directly or indirectly, either in the business	2791
of the sale of securities for the person's own account, or in the	2792
business of the purchase or sale of securities for the account of	2793
others in the reasonable expectation of receiving a commission,	2794
fee, or other remuneration as a result of engaging in the purchase	2795
and sale of securities. "Dealer" does not mean any of the	2796
following:	2797

(a) Any issuer, including any officer, director, employee, or	2798
trustee of, or member or manager of, or partner in, or any general	2799
partner of, any issuer, that sells, offers for sale, or does any	2800
act in furtherance of the sale of a security that represents an	2801
economic interest in that issuer, provided no commission, fee, or	2802
other similar remuneration is paid to or received by the issuer	2803
for the sale;	2804

(b) Any licensed attorney, public accountant, or firm of such	2805
attorneys or accountants, whose activities are incidental to the	2806
practice of the attorney's, accountant's, or firm's profession;	2807

(c) Any person that, for the account of others, engages in	2808
the purchase or sale of securities that are issued and outstanding	2809
before such purchase and sale, if a majority or more of the equity	2810
interest of an issuer is sold in that transaction, and if, in the	2811
case of a corporation, the securities sold in that transaction	2812
represent a majority or more of the voting power of the	2813
corporation in the election of directors;	2814

(d) Any person that brings an issuer together with a	2815
potential investor and whose compensation is not directly or	2816
indirectly based on the sale of any securities by the issuer to	2817
the investor;	2818

(e) Any bank;

2819

(f) Any person that the division of securities by rule	2820
exempts from the definition of "dealer" under division (E)(1) of	2821
this section.	2822

(2) "Licensed dealer" means a dealer licensed under this	2823
chapter.	2824

(F)(1) "Salesman" or "salesperson" means every natural	2825
person, other than a dealer, who is employed, authorized, or	2826
appointed by a dealer to sell securities within this state.	2827

(2) The general partners of a partnership, and the executive	2828
officers of a corporation or unincorporated association, licensed	2829
as a dealer are not salespersons within the meaning of this	2830
definition, nor are such clerical or other employees of an issuer	2831
or dealer as are employed for work to which the sale of securities	2832
is secondary and incidental; but the division of securities may	2833
require a license from any such partner, executive officer, or	2834
employee if it determines that protection of the public	2835
necessitates the licensing.	2836

(3) "Licensed salesperson" means a salesperson licensed under	2837
this chapter.	2838

(G) "Issuer" means every person who has issued, proposes to	2839
issue, or issues any security.	2840

(H) "Director" means each director or trustee of a	2841
corporation, each trustee of a trust, each general partner of a	2842
partnership, except a partnership association, each manager of a	2843
partnership association, and any person vested with managerial or	2844
directory power over an issuer not having a board of directors or	2845
trustees.	2846

(I) "Incorporator" means any incorporator of a corporation	2847
and any organizer of, or any person participating, other than in a	2848
representative or professional capacity, in the organization of an	2849
unincorporated issuer.	2850

(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent	2851
practices," or "fraudulent transactions" means anything recognized	2852
on or after July 22, 1929, as such in courts of law or equity; any	2853
device, scheme, or artifice to defraud or to obtain money or	2854
property by means of any false pretense, representation, or	2855
promise; any fictitious or pretended purchase or sale of	2856
securities; and any act, practice, transaction, or course of	2857
business relating to the purchase or sale of securities that is	2858
fraudulent or that has operated or would operate as a fraud upon	2859
the seller or purchaser.	2860

(K) Except as otherwise specifically provided, whenever any	2861
classification or computation is based upon "par value," as	2862
applied to securities without par value, the average of the	2863
aggregate consideration received or to be received by the issuer	2864
for each class of those securities shall be used as the basis for	2865
that classification or computation.	2866

(L)(1) "Intangible property" means patents, copyrights,	2867
secret processes, formulas, services, good will, promotion and	2868
organization fees and expenses, trademarks, trade brands, trade	2869
names, licenses, franchises, any other assets treated as	2870
intangible according to generally accepted accounting principles,	2871
and securities, accounts receivable, or contract rights having no	2872
readily determinable value.	2873

(2) "Tangible property" means all property other than	2874
intangible property and includes securities, accounts receivable,	2875
and contract rights, when the securities, accounts receivable, or	2876
contract rights have a readily determinable value.	2877

(M) "Public utilities" means those utilities defined in	2878
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised	2879
Code; in the case of a foreign corporation, it means those	2880
utilities defined as public utilities by the laws of its domicile;	2881
and in the case of any other foreign issuer, it means those	2882
utilities defined as public utilities by the laws of the situs of	2883
its principal place of business. The term always includes	2884
railroads whether or not they are so defined as public utilities.	2885

(N) "State" means any state of the United States, any	2886
territory or possession of the United States, the District of	2887
Columbia, and any province of Canada.	2888

(O) "Bank" means any bank, trust company, savings and loan	2889
association, savings bank, or credit union that is incorporated or	2890
organized under the laws of the United States, any state of the	2891
United States, Canada, or any province of Canada and that is	2892
subject to regulation or supervision by that country, state, or	2893
province.	2894

(P) "Include," when used in a definition, does not exclude	2895
other things or persons otherwise within the meaning of the term	2896
defined.	2897

(Q)(1) "Registration by description" means that the	2898
requirements of section 1707.08 of the Revised Code have been	2899
complied with.	2900

(2) "Registration by qualification" means that the	2901
requirements of sections 1707.09 and 1707.11 of the Revised Code	2902
have been complied with.	2903

(3) "Registration by coordination" means that there has been	2904
compliance with section 1707.091 of the Revised Code. Reference in	2905
this chapter to registration by qualification also shall be deemed	2906
to include registration by coordination unless the context	2907
otherwise indicates.	2908

(R) "Intoxicating liquor" includes all liquids and compounds	2909
that contain more than three and two-tenths per cent of alcohol by	2910
weight and are fit for use for beverage purposes.	2911

(S) "Institutional investor" means any corporation, bank,	2912
insurance company, pension fund or pension fund trust, employees'	2913
profit-sharing fund or employees' profit-sharing trust, any	2914
association engaged, as a substantial part of its business or	2915
operations, in purchasing or holding securities, or any trust in	2916
respect of which a bank is trustee or cotrustee. "Institutional	2917
investor" does not include any business entity formed for the	2918
primary purpose of evading sections 1707.01 to 1707.45 of the	2919
Revised Code.	2920

(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a,	2921
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a,	2922
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1,	2923
"Investment Advisers Act of 1940," 54 Stat. 847, 15 U.S.C. 80b,	2924
and "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C. 80a	2925
mean the federal statutes of those names as amended before or	2926
after March 18, 1999.	2927

(U) "Securities and exchange commission" means the securities	2928
and exchange commission established by the Securities Exchange Act	2929
of 1934.	2930

(V)(1) "Control bid" means the purchase of or offer to	2931
purchase any equity security of a subject company from a resident	2932
of this state if either of the following applies:	2933

(a) After the purchase of that security, the offeror would be	2934
directly or indirectly the beneficial owner of more than ten per	2935
cent of any class of the issued and outstanding equity securities	2936
of the issuer.	2937

(b) The offeror is the subject company, there is a pending	2938
control bid by a person other than the issuer, and the number of	2939
the issued and outstanding shares of the subject company would be	2940
reduced by more than ten per cent.	2941

(2) For purposes of division (V)(1) of this section, "control	2942
bid" does not include any of the following:	2943

(a) A bid made by a dealer for the dealer's own account in	2944
the ordinary course of business of buying and selling securities;	2945

(b) An offer to acquire any equity security solely in	2946
exchange for any other security, or the acquisition of any equity	2947
security pursuant to an offer, for the sole account of the	2948
offeror, in good faith and not for the purpose of avoiding the	2949
provisions of this chapter, and not involving any public offering	2950
of the other security within the meaning of Section 4 of Title I	2951
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),	2952
as amended;	2953

(c) Any other offer to acquire any equity security, or the	2954
acquisition of any equity security pursuant to an offer, for the	2955
sole account of the offeror, from not more than fifty persons, in	2956
good faith and not for the purpose of avoiding the provisions of	2957
this chapter.	2958

(W) "Offeror" means a person who makes, or in any way	2959
participates or aids in making, a control bid and includes persons	2960
acting jointly or in concert, or who intend to exercise jointly or	2961
in concert any voting rights attached to the securities for which	2962
the control bid is made and also includes any subject company	2963
making a control bid for its own securities.	2964

(X)(1) "Investment adviser" means any person who, for	2965
compensation, engages in the business of advising others, either	2966
directly or through publications or writings, as to the value of	2967
securities or as to the advisability of investing in, purchasing,	2968
or selling securities, or who, for compensation and as a part of	2969
regular business, issues or promulgates analyses or reports	2970
concerning securities.	2971

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

2972

(a) Any attorney, accountant, engineer, or teacher, whose	2973
performance of investment advisory services described in division	2974
(X)(1) of this section is solely incidental to the practice of the	2975
attorney's, accountant's, engineer's, or teacher's profession;	2976

(b) A publisher of any bona fide newspaper, news magazine, or	2977
business or financial publication of general and regular	2978
circulation;	2979

(c) A person who acts solely as an investment adviser	2980
representative;	2981

(d) A bank holding company, as defined in the "Bank Holding	2982
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an	2983
investment company;	2984

(e) A bank, or any receiver, conservator, or other	2985
liquidating agent of a bank;	2986

(f) Any licensed dealer or licensed salesperson whose	2987
performance of investment advisory services described in division	2988
(X)(1) of this section is solely incidental to the conduct of the	2989
dealer's or salesperson's business as a licensed dealer or	2990
licensed salesperson and who receives no special compensation for	2991
the services;	2992

(g) Any person, the advice, analyses, or reports of which do	2993
not relate to securities other than securities that are direct	2994
obligations of, or obligations guaranteed as to principal or	2995
interest by, the United States, or securities issued or guaranteed	2996
by corporations in which the United States has a direct or	2997
indirect interest, and that have been designated by the secretary	2998
of the treasury as exempt securities as defined in the "Securities	2999
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c;	3000

(h) Any person that is excluded from the definition of	3001
investment adviser pursuant to section 202(a)(11)(A) to (E) of the	3002
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that	3003
has received an order from the securities and exchange commission	3004
under section 202(a)(11)(F) of the "Investment Advisers Act of	3005
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not	3006
within the intent of section 202(a)(11) of the Investment Advisers	3007
Act of 1940.	3008

(i) A person who acts solely as a state retirement system	3009
investment officer;	3010

(j) Any other person that the division designates by rule, if	3011
the division finds that the designation is necessary or	3012
appropriate in the public interest or for the protection of	3013
investors or clients and consistent with the purposes fairly	3014
intended by the policy and provisions of this chapter.	3015

(Y)(1) "Subject company" means an issuer that satisfies both	3016
of the following:	3017

(a) Its principal place of business or its principal	3018
executive office is located in this state, or it owns or controls	3019
assets located within this state that have a fair market value of	3020
at least one million dollars.	3021

(b) More than ten per cent of its beneficial or record equity	3022
security holders are resident in this state, more than ten per	3023
cent of its equity securities are owned beneficially or of record	3024
by residents in this state, or more than one thousand of its	3025
beneficial or record equity security holders are resident in this	3026
state.	3027

(2) The division of securities may adopt rules to establish	3028
more specific application of the provisions set forth in division	3029
(Y)(1) of this section. Notwithstanding the provisions set forth	3030
in division (Y)(1) of this section and any rules adopted under	3031
this division, the division, by rule or in an adjudicatory	3032
proceeding, may make a determination that an issuer does not	3033
constitute a "subject company" under division (Y)(1) of this	3034
section if appropriate review of control bids involving the issuer	3035
is to be made by any regulatory authority of another jurisdiction.	3036

(Z) "Beneficial owner" includes any person who directly or	3037
indirectly through any contract, arrangement, understanding, or	3038
relationship has or shares, or otherwise has or shares, the power	3039
to vote or direct the voting of a security or the power to dispose	3040
of, or direct the disposition of, the security. "Beneficial	3041
ownership" includes the right, exercisable within sixty days, to	3042
acquire any security through the exercise of any option, warrant,	3043
or right, the conversion of any convertible security, or	3044
otherwise. Any security subject to any such option, warrant,	3045
right, or conversion privilege held by any person shall be deemed	3046
to be outstanding for the purpose of computing the percentage of	3047
outstanding securities of the class owned by that person, but	3048
shall not be deemed to be outstanding for the purpose of computing	3049
the percentage of the class owned by any other person. A person	3050
shall be deemed the beneficial owner of any security beneficially	3051
owned by any relative or spouse or relative of the spouse residing	3052
in the home of that person, any trust or estate in which that	3053
person owns ten per cent or more of the total beneficial interest	3054
or serves as trustee or executor, any corporation or entity in	3055
which that person owns ten per cent or more of the equity, and any	3056
affiliate or associate of that person.	3057

(AA) "Offeree" means the beneficial or record owner of any	3058
security that an offeror acquires or offers to acquire in	3059
connection with a control bid.	3060

(BB) "Equity security" means any share or similar security,	3061
or any security convertible into any such security, or carrying	3062
any warrant or right to subscribe to or purchase any such	3063
security, or any such warrant or right, or any other security	3064
that, for the protection of security holders, is treated as an	3065
equity security pursuant to rules of the division of securities.	3066

(CC)(1) "Investment adviser representative" means a	3067
supervised person of an investment adviser, provided that the	3068
supervised person has more than five clients who are natural	3069
persons other than excepted persons defined in division (EE) of	3070
this section, and that more than ten per cent of the supervised	3071
person's clients are natural persons other than excepted persons	3072
defined in division (EE) of this section. "Investment adviser	3073
representative" does not mean any of the following:	3074

(a) A supervised person that does not on a regular basis	3075
solicit, meet with, or otherwise communicate with clients of the	3076
investment adviser;	3077

(b) A supervised person that provides only investment	3078
advisory services described in division (X)(1) of this section by	3079
means of written materials or oral statements that do not purport	3080
to meet the objectives or needs of specific individuals or	3081
accounts;	3082

(c) Any other person that the division designates by rule, if	3083
the division finds that the designation is necessary or	3084
appropriate in the public interest or for the protection of	3085
investors or clients and is consistent with the provisions fairly	3086
intended by the policy and provisions of this chapter.	3087

(2) For the purpose of the calculation of clients in division	3088
(CC)(1) of this section, a natural person and the following	3089
persons are deemed a single client: Any minor child of the natural	3090
person; any relative, spouse, or relative of the spouse of the	3091
natural person who has the same principal residence as the natural	3092
person; all accounts of which the natural person or the persons	3093
referred to in division (CC)(2) of this section are the only	3094
primary beneficiaries; and all trusts of which the natural person	3095
or persons referred to in division (CC)(2) of this section are the	3096
only primary beneficiaries. Persons who are not residents of the	3097
United States need not be included in the calculation of clients	3098
under division (CC)(1) of this section.	3099

(3) If subsequent to March 18, 1999, amendments are enacted	3100
or adopted defining "investment adviser representative" for	3101
purposes of the Investment Advisers Act of 1940 or additional	3102
rules or regulations are promulgated by the securities and	3103
exchange commission regarding the definition of "investment	3104
adviser representative" for purposes of the Investment Advisers	3105
Act of 1940, the division of securities shall, by rule, adopt the	3106
substance of the amendments, rules, or regulations, unless the	3107
division finds that the amendments, rules, or regulations are not	3108
necessary for the protection of investors or in the public	3109
interest.	3110

(DD) "Supervised person" means a natural person who is any of	3111
the following:	3112

(1) A partner, officer, or director of an investment adviser,	3113
or other person occupying a similar status or performing similar	3114
functions with respect to an investment adviser;	3115

(2) An employee of an investment adviser;

3116

(3) A person who provides investment advisory services	3117
described in division (X)(1) of this section on behalf of the	3118
investment adviser and is subject to the supervision and control	3119
of the investment adviser.	3120

(EE) "Excepted person" means a natural person to whom any of	3121
the following applies:	3122

(1) Immediately after entering into the investment advisory	3123
contract with the investment adviser, the person has at least	3124
seven hundred fifty thousand dollars under the management of the	3125
investment adviser.	3126

(2) The investment adviser reasonably believes either of the	3127
following at the time the investment advisory contract is entered	3128
into with the person:	3129

(a) The person has a net worth, together with assets held	3130
jointly with a spouse, of more than one million five hundred	3131
thousand dollars.	3132

(b) The person is a qualified purchaser as defined in	3133
division (FF) of this section.	3134

(3) Immediately prior to entering into an investment advisory	3135
contract with the investment adviser, the person is either of the	3136
following:	3137

(a) An executive officer, director, trustee, general partner,	3138
or person serving in a similar capacity, of the investment	3139
adviser;	3140

(b) An employee of the investment adviser, other than an	3141
employee performing solely clerical, secretarial, or	3142
administrative functions or duties for the investment adviser,	3143
which employee, in connection with the employee's regular	3144
functions or duties, participates in the investment activities of	3145
the investment adviser, provided that, for at least twelve months,	3146
the employee has been performing such nonclerical, nonsecretarial,	3147
or nonadministrative functions or duties for or on behalf of the	3148
investment adviser or performing substantially similar functions	3149
or duties for or on behalf of another company.	3150

If subsequent to March 18, 1999, amendments are enacted or	3151
adopted defining "excepted person" for purposes of the Investment	3152
Advisers Act of 1940 or additional rules or regulations are	3153
promulgated by the securities and exchange commission regarding	3154
the definition of "excepted person" for purposes of the Investment	3155
Advisers Act of 1940, the division of securities shall, by rule,	3156
adopt the substance of the amendments, rules, or regulations,	3157
unless the division finds that the amendments, rules, or	3158
regulations are not necessary for the protection of investors or	3159
in the public interest.	3160

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

3161

(a) A natural person who owns not less than five million	3162
dollars in investments as defined by rule by the division of	3163
securities;	3164

(b) A natural person, acting for the person's own account or	3165
accounts of other qualified purchasers, who in the aggregate owns	3166
and invests on a discretionary basis, not less than twenty-five	3167
million dollars in investments as defined by rule by the division	3168
of securities.	3169

(2) If subsequent to March 18, 1999, amendments are enacted	3170
or adopted defining "qualified purchaser" for purposes of the	3171
Investment Advisers Act of 1940 or additional rules or regulations	3172
are promulgated by the securities and exchange commission	3173
regarding the definition of "qualified purchaser" for purposes of	3174
the Investment Advisers Act of 1940, the division of securities	3175
shall, by rule, adopt the amendments, rules, or regulations,	3176
unless the division finds that the amendments, rules, or	3177
regulations are not necessary for the protection of investors or	3178
in the public interest.	3179

(GG)(1) "Purchase" has the full meaning of "purchase" as	3180
applied by or accepted in courts of law or equity and includes	3181
every acquisition of, or attempt to acquire, a security or an	3182
interest in a security. "Purchase" also includes a contract to	3183
purchase, an exchange, an attempt to purchase, an option to	3184
purchase, a solicitation of a purchase, a solicitation of an offer	3185
to sell, a subscription, or an offer to purchase, directly or	3186
indirectly, by agent, circular, pamphlet, advertisement, or	3187
otherwise.	3188

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

3189

(3) Any security given with, or as a bonus on account of, any	3190
purchase of securities is conclusively presumed to constitute a	3191
part of the subject of that purchase.	3192

(HH) "Life settlement interest" means the entire interest or	3193
any fractional interest in an insurance policy or certificate of	3194
insurance, or in an insurance benefit under such a policy or	3195
certificate, that is the subject of a life settlement contract.	3196

For purposes of this division, "life settlement contract"	3197
means an agreement for the purchase, sale, assignment, transfer,	3198
devise, or bequest of any portion of the death benefit or	3199
ownership of any life insurance policy or contract, in return for	3200
consideration or any other thing of value that is less than the	3201
expected death benefit of the life insurance policy or contract.	3202
"Life settlement contract" includes a viatical settlement contract	3203
as defined in section 3916.01 of the Revised Code, but does not	3204
include any of the following:	3205

(1) A loan by an insurer under the terms of a life insurance	3206
policy, including, but not limited to, a loan secured by the cash	3207
value of the policy;	3208

(2) An agreement with a bank that takes an assignment of a	3209
life insurance policy as collateral for a loan;	3210

(3) The provision of accelerated benefits as defined in	3211
section 3915.21 of the Revised Code;	3212

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

3213

(5) An agreement by an individual to purchase an existing	3214
life insurance policy or contract from the original owner of the	3215
policy or contract, if the individual does not enter into more	3216
than one life settlement contract per calendar year;	3217

(6) The initial purchase of an insurance policy or	3218
certificate of insurance from its owner by a viatical settlement	3219
provider, as defined in section 3916.01 of the Revised Code, that	3220
is licensed under Chapter 3916. of the Revised Code.	3221

(II) "State retirement system" means the public employees	3222
retirement system, Ohio police and fire pension fund, state	3223
teachers retirement system, school employees retirement system,	3224
and state highway patrol retirement system.	3225

(JJ) "State retirement system investment officer" means an	3226
individual employed by a state retirement system as a chief	3227
investment officer, assistant investment officer, or the person in	3228
charge of a class of assets or in a position that is substantially	3229
equivalent to chief investment officer, assistant investment	3230
officer, or person in charge of a class of assets.	3231

Sec. 1707.03.  (A) As used in this section, "exempt" means	3232
that, except in the case of securities the right to buy, sell, or	3233
deal in which has been suspended or revoked under an existing	3234
order of the division of securities under section 1707.13 of the	3235
Revised Code or under a cease and desist order under division	3236
(H)(G) of section 1707.23 of the Revised Code, transactions in	3237
securities may be carried on and completed without compliance with	3238
sections 1707.08 to 1707.11 of the Revised Code.	3239

(B) A sale of securities made by or on behalf of a bona fide	3240
owner, neither the issuer nor a dealer, is exempt if the sale is	3241
made in good faith and not for the purpose of avoiding this	3242
chapter and is not made in the course of repeated and successive	3243
transactions of a similar character. Any sale of securities over a	3244
stock exchange that is lawfully conducted in this state and	3245
regularly open for public patronage and that has been established	3246
and operated for a period of at least five years prior to the sale	3247
at a commission not exceeding the commission regularly charged in	3248
such transactions also is exempt.	3249

(C) The sale of securities by executors, administrators,	3250
receivers, trustees, or anyone acting in a fiduciary capacity is	3251
exempt, where such relationship was created by law, by a will, or	3252
by judicial authority, and where such sales are subject to	3253
approval by, or are made in pursuance to authority granted by, any	3254
court of competent jurisdiction or are otherwise authorized and	3255
lawfully made by such fiduciary.	3256

(D) A sale to the issuer, to a dealer, or to an institutional	3257
investor is exempt.	3258

(E) A sale in good faith, and not for the purpose of avoiding	3259
this chapter, by a pledgee of a security pledged for a bona fide	3260
debt is exempt.	3261

(F) The sale at public auction by a corporation of shares of	3262
its stock because of delinquency in payment for the shares is	3263
exempt.	3264

(G)(1) The giving of any conversion right with, or on account	3265
of the purchase of, any security that is exempt, is the subject	3266
matter of an exempt transaction, has been registered by	3267
description, by coordination, or by qualification, or is the	3268
subject matter of a transaction that has been registered by	3269
description is exempt.	3270

(2) The giving of any subscription right, warrant, or option	3271
to purchase a security or right to receive a security upon	3272
exchange, which security is exempt at the time the right, warrant,	3273
or option to purchase or right to receive is given, is the subject	3274
matter of an exempt transaction, is registered by description, by	3275
coordination, or by qualification, or is the subject matter of a	3276
transaction that has been registered by description is exempt.	3277

(3) The giving of any subscription right or any warrant or	3278
option to purchase a security, which right, warrant, or option	3279
expressly provides that it shall not be exercisable except for a	3280
security that at the time of the exercise is exempt, is the	3281
subject matter of an exempt transaction, is registered by	3282
description, by coordination, or by qualification, or at such time	3283
is the subject matter of a transaction that has been registered by	3284
description is exempt.	3285

(H) The sale of notes, bonds, or other evidences of	3286
indebtedness that are secured by a mortgage lien upon real estate,	3287
leasehold estate other than oil, gas, or mining leasehold, or	3288
tangible personal property, or which evidence of indebtedness is	3289
due under or based upon a conditional-sale contract, if all such	3290
notes, bonds, or other evidences of indebtedness are sold to a	3291
single purchaser at a single sale, is exempt.	3292

(I) The delivery of securities by the issuer on the exercise	3293
of conversion rights, the sale of securities by the issuer on	3294
exercise of subscription rights or of warrants or options to	3295
purchase securities, the delivery of voting-trust certificates for	3296
securities deposited under a voting-trust agreement, the delivery	3297
of deposited securities on surrender of voting-trust certificates,	3298
and the delivery of final certificates on surrender of interim	3299
certificates are exempt; but the sale of securities on exercise of	3300
subscription rights, warrants, or options is not an exempt	3301
transaction unless those rights, warrants, or options when granted	3302
were the subject matter of an exempt transaction under division	3303
(G) of this section or were registered by description, by	3304
coordination, or by qualification.	3305

(J) The sale of securities by a bank, savings and loan	3306
association, savings bank, or credit union organized under the	3307
laws of the United States or of this state is exempt if at a	3308
profit to that seller of not more than two per cent of the total	3309
sale price of the securities.	3310

(K)(1) The distribution by a corporation of its securities to	3311
its security holders as a share dividend or other distribution out	3312
of earnings or surplus is exempt.	3313

(2) The exchange or distribution by the issuer of any of its	3314
securities or of the securities of any of the issuer's wholly	3315
owned subsidiaries exclusively with or to its existing security	3316
holders, if no commission or other remuneration is given directly	3317
or indirectly for soliciting the exchange, is exempt.	3318

(3) The sale of preorganization subscriptions for shares of	3319
stock of a corporation prior to the incorporation of the	3320
corporation is exempt, when the sale is evidenced by a written	3321
agreement, no remuneration is given, or promised, directly or	3322
indirectly, for or in connection with the sale of those	3323
securities, and no consideration is received, directly or	3324
indirectly, by any person from the purchasers of those securities	3325
until registration by qualification, by coordination, or by	3326
description of those securities is made under this chapter.	3327

(L) The issuance of securities in exchange for one or more	3328
bona fide outstanding securities, claims, or property interests,	3329
not including securities sold for a consideration payable in whole	3330
or in part in cash, under a plan of reorganization,	3331
recapitalization, or refinancing approved by a court pursuant to	3332
the Bankruptcy Act of the United States or to any other federal	3333
act giving any federal court jurisdiction over such plan of	3334
reorganization, or under a plan of reorganization approved by a	3335
court of competent jurisdiction of any state of the United States	3336
is exempt. As used in this division, "reorganization,"	3337
"recapitalization," and "refinancing" have the same meanings as in	3338
section 1707.04 of the Revised Code.	3339

(M) A sale by a licensed dealer, acting either as principal	3340
or as agent, of securities issued and outstanding before the sale	3341
is exempt, unless the sale is of one or more of the following:	3342

(1) Securities constituting the whole or a part of an unsold	3343
allotment to or subscription by a dealer as an underwriter or	3344
other participant in the distribution of those securities by the	3345
issuer, whether that distribution is direct or through an	3346
underwriter, provided that, if the issuer is such by reason of	3347
owning one-fourth or more of those securities, the dealer has	3348
knowledge of this fact or reasonable cause to believe this fact;	3349

(2) Any class of shares issued by a corporation when the	3350
number of beneficial owners of that class is less than	3351
twenty-five, with the record owner of securities being deemed the	3352
beneficial owner for this purpose, in the absence of actual	3353
knowledge to the contrary;	3354

(3) Securities that within one year were purchased outside	3355
this state or within one year were transported into this state, if	3356
the dealer has knowledge or reasonable cause to believe, before	3357
the sale of those securities, that within one year they were	3358
purchased outside this state or within one year were transported	3359
into this state; but such a sale of those securities is exempt if	3360
any of the following occurs:	3361

(a) A recognized securities manual contains the names of the	3362
issuer's officers and directors, a balance sheet of the issuer as	3363
of a date within eighteen months, and a profit and loss statement	3364
for either the fiscal year preceding that date or the most recent	3365
year of operations;	3366

(b) Those securities, or securities of the same class, within	3367
one year were registered or qualified under section 1707.09 or	3368
1707.091 of the Revised Code, and that registration or	3369
qualification is in full force and effect;	3370

(c) The sale is made by a licensed dealer on behalf of the	3371
bona fide owner of those securities in accordance with division	3372
(B) of this section;	3373

(d) Those securities were transported into Ohio in a	3374
transaction of the type described in division (L), (K), or (I) of	3375
this section, or in a transaction registered under division (A) of	3376
section 1707.06 of the Revised Code.	3377

(N) For the purpose of this division and division (M) of this	3378
section, "underwriter" means any person who has purchased from an	3379
issuer with a view to, or sells for an issuer in connection with,	3380
the distribution of any security, or who participates directly or	3381
indirectly in any such undertaking or in the underwriting thereof,	3382
but "underwriter" does not include a person whose interest is	3383
limited to a discount, commission, or profit from the underwriter	3384
or from a dealer that is not in excess of the customary	3385
distributors' or sellers' discount, commission, or profit; and	3386
"issuer" includes any person or any group of persons acting in	3387
concert in the sale of such securities, owning beneficially	3388
one-fourth or more of the outstanding securities of the class	3389
involved in the transactions in question, with the record owner of	3390
securities being deemed the beneficial owner for this purpose, in	3391
the absence of actual knowledge to the contrary.	3392

(O)(1) The sale of any equity security is exempt if all the	3393
following conditions are satisfied:	3394

(a) The sale is by the issuer of the security.

3395

(b) The total number of purchasers in this state of all	3396
securities issued or sold by the issuer in reliance upon this	3397
exemption during the period of one year ending with the date of	3398
the sale does not exceed ten. A sale of securities registered	3399
under this chapter or sold pursuant to an exemption under this	3400
chapter other than this exemption shall not be integrated with a	3401
sale pursuant to this exemption in computing the number of	3402
purchasers under this exemption.	3403

(c) No advertisement, article, notice, or other communication	3404
published in any newspaper, magazine, or similar medium or	3405
broadcast over television or radio is used in connection with the	3406
sale, but the use of an offering circular or other communication	3407
delivered by the issuer to selected individuals does not destroy	3408
this exemption.	3409

(d) The issuer reasonably believes after reasonable	3410
investigation that the purchaser is purchasing for investment.	3411

(e) The aggregate commission, discount, and other	3412
remuneration, excluding legal, accounting, and printing fees, paid	3413
or given directly or indirectly does not exceed ten per cent of	3414
the initial offering price.	3415

(f) Any such commission, discount, or other remuneration for	3416
sales in this state is paid or given only to dealers or	3417
salespersons registered pursuant to this chapter.	3418

(2) For the purposes of division (O)(1) of this section, each	3419
of the following is deemed to be a single purchaser of a security:	3420
husband and wife, a child and its parent or guardian when the	3421
parent or guardian holds the security for the benefit of the	3422
child, a corporation, a limited liability company, a partnership,	3423
an association or other unincorporated entity, a joint-stock	3424
company, or a trust, but only if the corporation, limited	3425
liability company, partnership, association, entity, joint-stock	3426
company, or trust was not formed for the purpose of purchasing the	3427
security.	3428

(3) As used in division (O)(1) of this section, "equity	3429
security" means any stock or similar security of a corporation or	3430
any membership interest in a limited liability company; or any	3431
security convertible, with or without consideration, into such a	3432
security, or carrying any warrant or right to subscribe to or	3433
purchase such a security; or any such warrant or right; or any	3434
other security that the division considers necessary or	3435
appropriate, by such rules as it may prescribe in the public	3436
interest or for the protection of investors, to treat as an equity	3437
security.	3438

(P) The sale of securities representing interests in or under	3439
profit-sharing or participation agreements relating to oil or gas	3440
wells located in this state, or representing interests in or under	3441
oil or gas leases of real estate situated in this state, is exempt	3442
if the securities are issued by an individual, partnership,	3443
limited partnership, partnership association, syndicate, pool,	3444
trust or trust fund, or other unincorporated association and if	3445
each of the following conditions is complied with:	3446

(1) The beneficial owners of the securities do not, and will	3447
not after the sale, exceed five natural persons;	3448

(2) The securities constitute or represent interests in not	3449
more than one oil or gas well;	3450

(3) A certificate or other instrument in writing is furnished	3451
to each purchaser of the securities at or before the consummation	3452
of the sale, disclosing the maximum commission, compensation for	3453
services, cost of lease, and expenses with respect to the sale of	3454
such interests and with respect to the promotion, development, and	3455
management of the oil or gas well, and the total of that	3456
commission, compensation, costs, and expenses does not exceed	3457
twenty-five per cent of the aggregate interests in the oil or gas	3458
well, exclusive of any landowner's rental or royalty;	3459

(4) The sale is made in good faith and not for the purpose of	3460
avoiding this chapter.	3461

(Q) The sale of any security is exempt if all of the	3462
following conditions are satisfied:	3463

(1) The provisions of section 5 of the Securities Act of 1933	3464
do not apply to the sale by reason of an exemption under section 4	3465
(2) of that act.	3466

(2) The aggregate commission, discount, and other	3467
remuneration, excluding legal, accounting, and printing fees, paid	3468
or given directly or indirectly does not exceed ten per cent of	3469
the initial offering price.	3470

(3) Any such commission, discount, or other remuneration for	3471
sales in this state is paid or given only to dealers or	3472
salespersons registered under this chapter.	3473

(4) The issuer or dealer files with the division of	3474
securities, not later than sixty days after the sale, a report	3475
setting forth the name and address of the issuer, the total amount	3476
of the securities sold under this division, the number of persons	3477
to whom the securities were sold, the price at which the	3478
securities were sold, and the commissions or discounts paid or	3479
given.	3480

(5) The issuer pays a filing fee of one hundred dollars for	3481
the first filing and fifty dollars for every subsequent filing	3482
during each calendar year.	3483

(R) A sale of a money order, travelers' check, or other	3484
instrument for the transmission of money by a person qualified to	3485
engage in such business under section 1109.60 or Chapter 1315. of	3486
the Revised Code is exempt.	3487

(S) A sale by a licensed dealer of securities that are in the	3488
process of registration under the Securities Act of 1933, unless	3489
exempt under that act, and that are in the process of	3490
registration, if registration is required under this chapter, is	3491
exempt, provided that no sale of that nature shall be consummated	3492
prior to the registration by description or qualification of the	3493
securities.	3494

(T) The execution by a licensed dealer of orders for the	3495
purchase of any security is exempt, provided that the dealer acts	3496
only as agent for the purchaser, has made no solicitation of the	3497
order to purchase the security, has no interest in the	3498
distribution of the security, and delivers to the purchaser	3499
written confirmation of the transaction that clearly itemizes the	3500
dealer's commission. "Solicitation," as used in this division,	3501
means solicitation of the order for the specific security	3502
purchased and does not include general solicitations or	3503
advertisements of any kind.	3504

(U) The sale insofar as the security holders of a person are	3505
concerned, where, pursuant to statutory provisions of the	3506
jurisdiction under which that person is organized or pursuant to	3507
provisions contained in its articles of incorporation, certificate	3508
of incorporation, partnership agreement, declaration of trust,	3509
trust indenture, or similar controlling instrument, there is	3510
submitted to the security holders, for their vote or consent, (1)	3511
a plan or agreement for a reclassification of securities of that	3512
person that involves the substitution of a security of that person	3513
for another security of that person, (2) a plan or agreement of	3514
merger or consolidation or a similar plan or agreement of	3515
acquisition in which the securities of that person held by the	3516
security holders will become or be exchanged for securities of any	3517
other person, or (3) a plan or agreement for a combination as	3518
defined in division (Q) of section 1701.01 of the Revised Code or	3519
a similar plan or agreement for the transfer of assets of that	3520
person to another person in consideration of the issuance of	3521
securities of any person, is exempt if, with respect to any of the	3522
foregoing transactions, either of the following conditions is	3523
satisfied:	3524

(a) The securities to be issued to the security holders are	3525
effectively registered under sections 6 to 8 of the Securities Act	3526
of 1933 and offered and sold in compliance with section 5 of that	3527
act;	3528

(b) At least twenty days prior to the date on which a meeting	3529
of the security holders is held or the earliest date on which	3530
corporate action may be taken when no meeting is held, there is	3531
submitted to the security holders, by that person, or by the	3532
person whose securities are to be issued in the transaction,	3533
information substantially equivalent to the information that would	3534
be required to be included in a proxy statement or information	3535
statement prepared by or on behalf of the management of an issuer	3536
subject to section 14(a) or 14(c) of the Securities Exchange Act	3537
of 1934.	3538

(V) The sale of any security is exempt if the division by	3539
rule finds that registration is not necessary or appropriate in	3540
the public interest or for the protection of investors.	3541

(W) Any offer or sale of securities made in reliance on the	3542
exemptions provided by Rule 505 of Regulation D made pursuant to	3543
the Securities Act of 1933 and the conditions and definitions	3544
provided by Rules 501 to 503 thereunder is exempt if the offer or	3545
sale satisfies all of the following conditions:	3546

(1) No commission or other remuneration is given, directly or	3547
indirectly, to any person for soliciting or selling to any person	3548
in this state in reliance on the exemption under this division,	3549
except to dealers licensed in this state.	3550

(2)(a) Unless the cause for disqualification is waived under	3551
division (W)(2)(b) of this section, no exemption under this	3552
section is available for the securities of an issuer unless the	3553
issuer did not know and in the exercise of reasonable care could	3554
not have known that any of the following applies to any of the	3555
persons described in Rule 262(a) to (c) of Regulation A under the	3556
Securities Act of 1933:	3557

(i) The person has filed an application for registration or	3558
qualification that is the subject of an effective order entered	3559
against the issuer, its officers, directors, general partners,	3560
controlling persons or affiliates thereof, pursuant to the law of	3561
any state within five years before the filing of a notice required	3562
under division (W)(3) of this section denying effectiveness to, or	3563
suspending or revoking the effectiveness of, the registration	3564
statement.	3565

(ii) The person has been convicted of any offense in	3566
connection with the offer, sale, or purchase of any security or	3567
franchise, or any felony involving fraud or deceit, including, but	3568
not limited to, forgery, embezzlement, fraud, theft, or conspiracy	3569
to defraud.	3570

(iii) The person is subject to an effective administrative	3571
order or judgment that was entered by a state securities	3572
administrator within five years before the filing of a notice	3573
required under division (W)(3) of this section and that prohibits,	3574
denies, or revokes the use of any exemption from securities	3575
registration, prohibits the transaction of business by the person	3576
as a dealer, or is based on fraud, deceit, an untrue statement of	3577
a material fact, or an omission to state a material fact.	3578

(iv) The person is subject to any order, judgment, or decree	3579
of any court entered within five years before the filing of a	3580
notice required under division (W)(3) of this section,	3581
temporarily, preliminarily, or permanently restraining or	3582
enjoining the person from engaging in or continuing any conduct or	3583
practice in connection with the offer, sale, or purchase of any	3584
security, or the making of any false filing with any state.	3585

(b)(i) Any disqualification under this division involving a	3586
dealer may be waived if the dealer is or continues to be licensed	3587
in this state as a dealer after notifying the commissioner of the	3588
act or event causing disqualification.	3589

(ii) The commissioner may waive any disqualification under	3590
this paragraph upon a showing of good cause that it is not	3591
necessary under the circumstances that use of the exemption be	3592
denied.	3593

(3) Not later than five business days before the earlier of	3594
the date on which the first use of an offering document or the	3595
first sale is made in this state in reliance on the exemption	3596
under this division, there is filed with the commissioner a notice	3597
comprised of offering material in compliance with the requirements	3598
of Rule 502 of Regulation D under the Securities Act of 1933 and a	3599
fee of one hundred dollars. Material amendments to the offering	3600
document shall be filed with the commissioner not later than the	3601
date of their first use in this state.	3602

(4) The aggregate commission, discount, and other	3603
remuneration paid or given, directly or indirectly, does not	3604
exceed twelve per cent of the initial offering price, excluding	3605
legal, accounting, and printing fees.	3606

(X) Any offer or sale of securities made in reliance on the	3607
exemption provided in Rule 506 of Regulation D under the	3608
Securities Act of 1933, and in accordance with Rules 501 to 503 of	3609
Regulation D under the Securities Act of 1933, is exempt provided	3610
that all of the following apply:	3611

(1) The issuer makes a notice filing with the division on	3612
form D of the securities and exchange commission within fifteen	3613
days of the first sale in this state;	3614

(2) Any commission, discount, or other remuneration for sales	3615
of securities in this state is paid or given only to dealers or	3616
salespersons licensed under this chapter;	3617

(3) The issuer pays a filing fee of one hundred dollars to	3618
the division; however, no filing fee shall be required to file	3619
amendments to the form D of the securities and exchange	3620
commission.	3621

(Y) The offer or sale of securities by an issuer is exempt	3622
provided that all of the following apply:	3623

(1) The sale of securities is made only to persons who are,	3624
or who the issuer reasonably believes are, accredited investors as	3625
defined in Rule 501 of Regulation D under the Securities Act of	3626
1933.	3627

(2) The issuer reasonably believes that all purchasers are	3628
purchasing for investment and not with a view to or for sale in	3629
connection with a distribution of the security. Any resale of a	3630
security sold in reliance on this exemption within twelve months	3631
of sale shall be presumed to be with a view to distribution and	3632
not for investment, except a resale to which any of the following	3633
applies:	3634

(a) The resale is pursuant to a registration statement	3635
effective under section 1707.09 or 1707.091 of the Revised Code.	3636

(b) The resale is to an accredited investor, as defined in	3637
Rule 501 of Regulation D under the Securities Act of 1933.	3638

(c) The resale is to an institutional investor pursuant to	3639
the exemptions under division (B) or (D) of this section.	3640

(3) The exemption under this division is not available to an	3641
issuer that is in the development stage and that either has no	3642
specific business plan or purpose or has indicated that its	3643
business plan is to engage in a merger or acquisition with an	3644
unidentified company or companies, or other entities or persons.	3645

(4) The exemption under this division is not available to an	3646
issuer, if the issuer, any of the issuer's predecessors, any	3647
affiliated issuer, any of the issuer's directors, officers,	3648
general partners, or beneficial owners of ten per cent or more of	3649
any class of its equity securities, any of the issuer's promoters	3650
presently connected with the issuer in any capacity, any	3651
underwriter of the securities to be offered, or any partner,	3652
director, or officer of such underwriter:	3653

(a) Within the past five years, has filed a registration	3654
statement that is the subject of a currently effective	3655
registration stop order entered by any state securities	3656
administrator or the securities and exchange commission;	3657

(b) Within the past five years, has been convicted of any	3658
criminal offense in connection with the offer, purchase, or sale	3659
of any security, or involving fraud or deceit;	3660

(c) Is currently subject to any state or federal	3661
administrative enforcement order or judgment, entered within the	3662
past five years, finding fraud or deceit in connection with the	3663
purchase or sale of any security;	3664

(d) Is currently subject to any order, judgment, or decree of	3665
any court of competent jurisdiction, entered within the past five	3666
years, that temporarily, preliminarily, or permanently restrains	3667
or enjoins the party from engaging in or continuing to engage in	3668
any conduct or practice involving fraud or deceit in connection	3669
with the purchase or sale of any security.	3670

(5) Division (Y)(4) of this section is inapplicable if any of	3671
the following applies:	3672

(a) The party subject to the disqualification is licensed or	3673
registered to conduct securities business in the state in which	3674
the order, judgment, or decree creating the disqualification was	3675
entered against the party described in division (Y)(4) of this	3676
section.	3677

(b) Before the first offer is made under this exemption, the	3678
state securities administrator, or the court or regulatory	3679
authority that entered the order, judgment, or decree, waives the	3680
disqualification.	3681

(c) The issuer did not know and, in the exercise of	3682
reasonable care based on reasonable investigation, could not have	3683
known that a disqualification from the exemption existed under	3684
division (Y)(4) of this section.	3685

(6) A general announcement of the proposed offering may be	3686
made by any means; however, the general announcement shall include	3687
only the following information, unless additional information is	3688
specifically permitted by the division by rule:	3689

(a) The name, address, and telephone number of the issuer of	3690
the securities;	3691

(b) The name, a brief description, and price of any security	3692
to be issued;	3693

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

3694

(d) The type, number, and aggregate amount of securities	3695
being offered;	3696

(e) The name, address, and telephone number of the person to	3697
contact for additional information; and	3698

(f) A statement indicating all of the following:

3699

(i) Sales will only be made to accredited investors as	3700
defined in Rule 501 of Regulation D under the Securities Act of	3701
1933;	3702

(ii) No money or other consideration is being solicited or	3703
will be accepted by way of this general announcement;	3704

(iii) The securities have not been registered with or	3705
approved by any state securities administrator or the securities	3706
and exchange commission and are being offered and sold pursuant to	3707
an exemption from registration.	3708

(7) The issuer, in connection with an offer, may provide	3709
information in addition to the general announcement described in	3710
division (Y)(6) of this section, provided that either of the	3711
following applies:	3712

(a) The information is delivered through an electronic	3713
database that is restricted to persons that are accredited	3714
investors as defined in Rule 501 of Regulation D under the	3715
Securities Act of 1933.	3716

(b) The information is delivered after the issuer reasonably	3717
believes that the prospective purchaser is an accredited investor	3718
as defined in Rule 501 of Regulation D under the Securities Act of	3719
1933.	3720

(8) No telephone solicitation shall be done, unless prior to	3721
placing the telephone call, the issuer reasonably believes that	3722
the prospective purchaser to be solicited is an accredited	3723
investor as defined in Rule 501 of Regulation D under the	3724
Securities Act of 1933.	3725

(9) Dissemination of the general announcement described in	3726
division (Y)(6) of this section to persons that are not accredited	3727
investors, as defined in Rule 501 of Regulation D under the	3728
Securities Act of 1933, does not disqualify the issuer from	3729
claiming an exemption under this division.	3730

(10) The issuer shall file with the division notice of the	3731
offering of securities within fifteen days after notice of the	3732
offering is made or a general announcement is made in this state.	3733
The filing shall be on forms adopted by the division and shall	3734
include a copy of the general announcement, if one is made	3735
regarding the proposed offering, and copies of any offering	3736
materials, circulars, or prospectuses. A filing fee of one hundred	3737
dollars also shall be included.	3738

Sec. 1707.162. (A) No person shall act as a state retirement	3739
system investment officer unless the person is licensed as a state	3740
retirement system investment officer by the division of	3741
securities.	3742

(B) No state retirement system investment officer shall act	3743
as a dealer, salesperson, investment advisor, or investment	3744
advisor representative.	3745

Sec. 1707.163. (A) Application for a state retirement system	3746
investment officer's license shall be made in accordance with this	3747
section by filing with the division of securities the information,	3748
materials, and forms specified in rules adopted by the division.	3749

(B)(1) The division may investigate any applicant for a	3750
license and may require any additional information as it considers	3751
necessary to determine the applicant's business repute and	3752
qualifications to act as an investment officer.	3753

(2) If the application for a state retirement system	3754
investment officer's license involves investigation outside of	3755
this state, the applicant may be required by the division to	3756
advance sufficient funds to pay any of the actual expenses of the	3757
investigation. The division shall furnish the applicant with an	3758
itemized statement of the expenses the applicant is required to	3759
pay.	3760

(C) The division shall by rule require an applicant for a	3761
state retirement system investment officer's license to pass an	3762
examination designated by the division or achieve a specified	3763
professional designation unless the applicant meets both of the	3764
following requirements:	3765

(1) Acts as a state retirement system investment officer on	3766
the effective date of this section;	3767

(2) Has experience or equivalent education acceptable to the	3768
division.	3769

(D) If the division finds that the applicant is of good	3770
business repute, appears to be qualified to act as a state	3771
retirement system investment officer, and has complied with this	3772
chapter and rules adopted under this chapter by the division, the	3773
division, on payment of the fees prescribed by division (B) of	3774
section 1707.17 of the Revised Code, shall issue to the applicant	3775
a license authorizing the applicant to act as a state retirement	3776
system investment officer.	3777

Sec. 1707.17.  (A)(1) The license of every dealer in and	3778
salesperson of securities shall expire on the thirty-first day of	3779
December of each year, and may be renewed upon the filing with the	3780
division of securities of an application for renewal, and the	3781
payment of the fee prescribed in this section. The division shall	3782
give notice, without unreasonable delay, of its action on any	3783
application for renewal of a dealer's or salesperson's license.	3784

(2) The license of every investment adviser and investment	3785
adviser representative licensed under section 1707.141 or 1707.161	3786
of the Revised Code shall expire on the thirty-first day of	3787
December of each year. The licenses may be renewed upon the filing	3788
with the division of an application for renewal, and the payment	3789
of the fee prescribed in division (B) of this section. The	3790
division shall give notice, without unreasonable delay, of its	3791
action on any application for renewal.	3792

(3) An investment adviser required to make a notice filing	3793
under division (B) of section 1707.141 of the Revised Code	3794
annually shall file with the division the notice filing and the	3795
fee prescribed in division (B) of this section, no later than the	3796
thirty-first day of December of each year.	3797

(4) The license of every state retirement system investment	3798
officer licensed under section 1707.163 of the Revised Code shall	3799
expire on the thirtieth day of June of each year. The licenses may	3800
be renewed on the filing with the division of an application for	3801
renewal, and the payment of the fee prescribed in division (B) of	3802
this section. The division shall give notice, without unreasonable	3803
delay, of its action on any application for renewal.	3804

(B)(1) The fee for each dealer's license, and for each annual	3805
renewal thereof, shall be one hundred dollars. The fee for the	3806
examination of applicant dealers, when administered by the	3807
division, shall be seventy-five dollars.	3808

(2) The fee for each salesperson's license, and for each	3809
annual renewal thereof, shall be fifty dollars. The fee for the	3810
examination of an applicant salesperson, when administered by the	3811
division, shall be fifty dollars.	3812

(3) The fee for each investment adviser's license, and for	3813
each annual renewal thereof, shall be fifty dollars.	3814

(4) The fee for each investment adviser notice filing	3815
required by division (B) of section 1707.141 of the Revised Code	3816
shall be fifty dollars.	3817

(5) The fee for each investment adviser representative's	3818
license, and for each annual renewal thereof, shall be thirty-five	3819
dollars.	3820

(6) The fee for each state retirement system investment	3821
officer's license, and for each annual renewal thereof, shall be	3822
fifty dollars.	3823

(C) A dealer's, salesperson's, investment adviser's, or	3824
investment adviser representative's, or state retirement system	3825
investment officer's license may be issued at any time for the	3826
remainder of the calendar year. In that event, the annual fee	3827
shall not be reduced.	3828

Sec. 1707.19.  (A) An original license, or a renewal thereof,	3829
applied for by a dealer or salesperson of securities, or by an	3830
investment adviser or an, investment adviser representative, or	3831
state retirement system investment officer, may be refused, and	3832
any such license granted may be suspended and, after notice and	3833
hearing in accordance with Chapter 119. of the Revised Code, may	3834
be revoked, by the division of securities, if the division	3835
determines that the applicant or the licensed dealer, salesperson,	3836
investment adviser, or investment adviser representative, or state	3837
retirement system investment officer:	3838

(1) Is not of good business repute;

3839

(2) Is conducting an illegitimate or fraudulent business;

3840

(3) Is, in the case of a dealer or investment adviser,	3841
insolvent;	3842

(4) Has knowingly violated any provision of sections 1707.01	3843
to 1707.45 of the Revised Code, or any regulation or order made	3844
thereunder;	3845

(5) Has knowingly made a false statement of a material fact	3846
or an omission of a material fact in an application for a license,	3847
in a description or application that has been filed, or in any	3848
statement made to the division under such sections;	3849

(6) Has refused to comply with any lawful order or	3850
requirement of the division under section 1707.23 of the Revised	3851
Code;	3852

(7) Has been guilty of any fraudulent act in connection with	3853
the sale of any securities or in connection with acting as an	3854
investment adviser or, investment adviser representative, or state	3855
retirement system investment officer;	3856

(8) Conducts business in purchasing or selling securities at	3857
such variations from the existing market as in the light of all	3858
the circumstances are unconscionable;	3859

(9) Conducts business in violation of such rules and	3860
regulations as the division prescribes for the protection of	3861
investors, clients, or prospective clients;	3862

(10)(a) Has failed to furnish to the division any information	3863
with respect to the purchases or sales of securities within this	3864
state that may be reasonably requested by the division as	3865
pertinent to the protection of investors in this state.	3866

(b) Has failed to furnish to the division any information	3867
with respect to acting as an investment adviser or an, investment	3868
adviser representative, or state retirement system investment	3869
officer within this state that may be reasonably requested by the	3870
division.	3871

(B) For the protection of investors the division may	3872
prescribe reasonable rules defining fraudulent, evasive,	3873
deceptive, or grossly unfair practices or devices in the purchase	3874
or sale of securities.	3875

(C) For the protection of investors, clients, or prospective	3876
clients, the division may prescribe reasonable rules regarding the	3877
acts and practices of an investment adviser or an investment	3878
adviser representative.	3879

(D) Pending any investigation or hearing provided for in	3880
sections 1707.01 to 1707.45 of the Revised Code, the division may	3881
order the suspension of any dealer's, salesperson's, investment	3882
adviser's, or investment adviser representative's, or state	3883
retirement system investment officer's license by notifying the	3884
party concerned of such suspension and the cause for it. If it is	3885
a salesperson whose license is suspended, the division shall also	3886
notify the dealer employing the salesperson. If it is an	3887
investment adviser representative whose license is suspended, the	3888
division also shall notify the investment adviser with whom the	3889
investment adviser representative is employed or associated. If it	3890
is a state retirement system investment officer whose license is	3891
suspended, the division shall also notify the state retirement	3892
system with whom the state retirement system investment officer is	3893
employed.	3894

(E)(1) The suspension or revocation of the dealer's license	3895
suspends the licenses of all the dealer's salespersons.	3896

(2) The suspension or revocation of the investment adviser's	3897
license suspends the licenses of all the investment adviser's	3898
investment adviser representatives. The suspension or revocation	3899
of an investment adviser's registration under section 203 of the	3900
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the	3901
licenses of all the investment adviser's investment adviser	3902
representatives.	3903

(F) It is sufficient cause for refusal, revocation, or	3904
suspension of the license in case of a partnership, partnership	3905
association, corporation, or unincorporated association if any	3906
general partner of the partnership, manager of the partnership	3907
association, or executive officer of the corporation or	3908
unincorporated association is not of good business repute or has	3909
been guilty of any act or omission which would be cause for	3910
refusing or revoking the license of an individual dealer,	3911
salesperson, investment adviser, or investment adviser	3912
representative.	3913

Sec. 1707.20.  (A) The division of securities may adopt,	3914
amend, and rescind such rules, forms, and orders as are necessary	3915
to carry out sections 1707.01 to 1707.45 of the Revised Code,	3916
including rules and forms governing registration statements,	3917
applications, and reports, and defining any terms, whether or not	3918
used in sections 1707.01 to 1707.45 of the Revised Code, insofar	3919
as the definitions are not inconsistent with these sections. For	3920
the purpose of rules and forms, the division may classify	3921
securities, persons, and matters within its jurisdiction, and	3922
prescribe different requirements for different classes.	3923

(B) No rule, form, or order may be made, amended, or	3924
rescinded unless the division finds that the action is necessary	3925
or appropriate in the public interest or for the protection of	3926
investors, clients, or prospective clients, or state retirement	3927
systems and consistent with the purposes fairly intended by the	3928
policy and provisions of sections 1707.01 to 1707.45 of the	3929
Revised Code. In prescribing rules and forms and in otherwise	3930
administering sections 1707.01 to 1707.45 of the Revised Code, the	3931
division may cooperate with the securities administrators of the	3932
other states and the securities and exchange commission with a	3933
view of effectuating the policy of this section to achieve maximum	3934
uniformity in the form and content of registration statements,	3935
applications, reports, and overall securities regulation wherever	3936
practicable.	3937

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

3938

(1) The form and content of financial statements required	3939
under sections 1707.01 to 1707.45 of the Revised Code;	3940

(2) The circumstances under which consolidated financial	3941
statements shall be filed;	3942

(3) Whether any required financial statements shall be	3943
certified by independent or certified public accountants. All	3944
financial statements shall be prepared in accordance with	3945
generally accepted accounting practices.	3946

(D) All rules and forms of the division shall be published;	3947
and in addition to fulfilling the requirements of Chapter 119. of	3948
the Revised Code, the division shall prescribe, and shall publish	3949
and make available its rules regarding the sale of securities, the	3950
administration of sections 1707.01 to 1707.45 of the Revised Code,	3951
and the procedure and practice before the division.	3952

(E) No provision of sections 1707.01 to 1707.45 of the	3953
Revised Code imposing any liability applies to any act done or	3954
omitted in good faith in conformity with any rule, form, or order	3955
of the division of securities, notwithstanding that the rule,	3956
form, or order may later be amended or rescinded or be determined	3957
by judicial or other authority to be invalid for any reason,	3958
except that the issuance of an order granting effectiveness to a	3959
registration under section 1707.09 or 1707.091 of the Revised Code	3960
for the purposes of this division shall not be deemed an order	3961
other than as the establishment of the fact of registration.	3962

Sec. 1707.22.  Whenever a dealer's, salesperson's, investment	3963
adviser's, or investment adviser representative's, or state	3964
retirement system investment officer's license has been refused,	3965
suspended, or revoked, or a renewal thereof has been denied, by	3966
the division of securities, or whenever the division has refused	3967
to qualify securities or has suspended or revoked the registration	3968
of any particular security by description or by qualification, or	3969
the right to buy, sell, or deal in any particular security whether	3970
it is registered or qualified or exempt, or whether the	3971
transactions in it are registered or exempt, the aggrieved party	3972
may appeal in accordance with Chapter 119. of the Revised Code.	3973

An order sustaining the refusal of the division to grant or	3974
renew a dealer's, salesperson's, investment adviser's, or	3975
investment adviser representative's, or state retirement system	3976
investment officer's license or to grant qualification of	3977
securities, or an order sustaining the division in suspending or	3978
revoking a dealer's, salesperson's, investment adviser's, or	3979
investment adviser representative's, or state retirement system	3980
investment officer's license, the registration of any particular	3981
security by description or by qualification, or the right to buy,	3982
sell, or deal in any particular security, shall not bar, after ten	3983
days from the order, a new registration by description, or a new	3984
application of the plaintiff for such a license or qualification	3985
or for a withdrawal of a revocation or suspension; nor shall an	3986
order in favor of the plaintiff prevent the division, after proper	3987
notice and hearing, from thereafter revoking or suspending such	3988
license, registration, or right to buy, sell, or deal in a	3989
particular security, for any proper cause which may, after the	3990
order, accrue or be discovered.	3991

Sec. 1707.23.  Whenever it appears to the division of	3992
securities, from its files, upon complaint, or otherwise, that any	3993
person has engaged in, is engaged in, or is about to engage in any	3994
practice declared to be illegal or prohibited by this chapter or	3995
rules adopted under this chapter by the division, or defined as	3996
fraudulent in this chapter or rules adopted under this chapter by	3997
the division, or any other deceptive scheme or practice in	3998
connection with the sale of securities, or acting as a dealer, a	3999
salesperson, an investment adviser or, investment adviser	4000
representative, or state retirement system investment officer or	4001
when the division believes it to be in the best interests of the	4002
public and necessary for the protection of investors, the division	4003
may do any of the following:	4004

(A) Require any person to file with it, on such forms as it	4005
prescribes, an original or additional statement or report in	4006
writing, under oath or otherwise, as to any facts or circumstances	4007
concerning the issuance, sale, or offer for sale of securities	4008
within this state by the person, as to the person's acts or	4009
practices as a dealer, a salesperson, an investment adviser or,	4010
investment adviser representative, or state retirement system	4011
investment officer within this state, and as to other information	4012
as it deems material or relevant thereto;	4013

(B) Examine any investment adviser, investment adviser	4014
representative, state retirement system investment officer, or any	4015
seller, dealer, salesperson, or issuer of any securities, and any	4016
of their agents, employees, partners, officers, directors,	4017
members, or shareholders, wherever located, under oath; and	4018
examine and produce records, books, documents, accounts, and	4019
papers as the division deems material or relevant to the inquiry;	4020

(C) Require the attendance of witnesses, and the production	4021
of books, records, and papers, as are required either by the	4022
division or by any party to a hearing before the division, and for	4023
that purpose issue a subpoena for any witness, or a subpoena duces	4024
tecum to compel the production of any books, records, or papers.	4025
The subpoena shall be served by personal service or by certified	4026
mail, return receipt requested. If the subpoena is returned	4027
because of inability to deliver, or if no return is received	4028
within thirty days of the date of mailing, the subpoena may be	4029
served by ordinary mail. If no return of ordinary mail is received	4030
within thirty days after the date of mailing, service shall be	4031
deemed to have been made. If the subpoena is returned because of	4032
inability to deliver, the division may designate a person or	4033
persons to effect either personal or residence service upon the	4034
witness. The person designated to effect personal or residence	4035
service under this division may be the sheriff of the county in	4036
which the witness resides or may be found or any other duly	4037
designated person. The fees and mileage of the person serving the	4038
subpoena shall be the same as those allowed by the courts of	4039
common pleas in criminal cases, and shall be paid from the funds	4040
of the division. Fees and mileage for the witness shall be the	4041
same as those allowed for witnesses by the courts of common pleas	4042
in criminal cases, and shall be paid from the funds of the	4043
division upon request of the witness following the hearing.	4044

(D) Proceed under section 1707.19 of the Revised Code to	4045
refuse a license applied for by a dealer, salesperson, investment	4046
adviser, or investment adviser representative or to suspend the	4047
license of any licensed dealer, licensed salesperson, licensed	4048
investment adviser, or licensed investment adviser representative	4049
and ultimately, if the division determines, revoke such license	4050
under that section;	4051

(E) Initiate criminal proceedings under section 1707.042 or	4052
1707.44 of the Revised Code or rules adopted under those sections	4053
by the division by laying before the prosecuting attorney of the	4054
proper county any evidence of criminality which comes to its	4055
knowledge; and in the event of the neglect or refusal of the	4056
prosecuting attorney to prosecute such violations, or at the	4057
request of the prosecuting attorney, the division shall submit the	4058
evidence to the attorney general, who may proceed in the	4059
prosecution with all the rights, privileges, and powers conferred	4060
by law on prosecuting attorneys, including the power to appear	4061
before grand juries and to interrogate witnesses before such grand	4062
juries.	4063

(F)(E) Require any dealers immediately to furnish to the	4064
division copies of prospectuses, circulars, or advertisements	4065
respecting securities that they publish or generally distribute,	4066
or require any investment advisers immediately to furnish to the	4067
division copies of brochures, advertisements, publications,	4068
analyses, reports, or other writings that they publish or	4069
distribute;	4070

(G)(F) Require any dealers to mail to the division, prior to	4071
sale, notices of intention to sell, in respect to all securities	4072
which are not exempt under section 1707.02 of the Revised Code, or	4073
which are sold in transactions not exempt under section 1707.03 or	4074
1707.04 of the Revised Code;	4075

(H)(G) Issue and cause to be served by certified mail upon	4076
all persons affected an order requiring the person or persons to	4077
cease and desist from the acts or practices appearing to the	4078
division to constitute violations of this chapter or rules adopted	4079
under this chapter by the division. The order shall state	4080
specifically the section or sections of this chapter or the rule	4081
or rules adopted under this chapter by the division that appear to	4082
the division to have been violated and the facts constituting the	4083
violation. If after the issuance of the order it appears to the	4084
division that any person or persons affected by the order have	4085
engaged in any act or practice from which the person or persons	4086
shall have been required, by the order, to cease and desist, the	4087
director of commerce may apply to the court of common pleas of any	4088
county for, and upon proof of the validity of the order of the	4089
division, the delivery of the order to the person or persons	4090
affected, and of the illegality and the continuation of the acts	4091
or practices that are the subject of the order, the court may	4092
grant an injunction implementing the order of the division.	4093

(I)(H) Issue and initiate contempt proceedings in this state	4094
regarding subpoenas and subpoenas duces tecum at the request of	4095
the securities administrator of another state, if it appears to	4096
the division that the activities for which the information is	4097
sought would violate this chapter if the activities had occurred	4098
in this state.	4099

(J)(I) The remedies provided by this section are cumulative	4100
and concurrent with any other remedy provided in this chapter, and	4101
the exercise of one remedy does not preclude or require the	4102
exercise of any other remedy.	4103

Sec. 1707.25.  In case any person fails to file any statement	4104
or report required by sections 1707.01 to 1707.45 of the Revised	4105
Code, to obey any subpoena the issuance of which is provided for	4106
in those sections, or to produce books, records, or papers, give	4107
testimony, or answer questions, as required by those sections, the	4108
director of commerce may apply to a court of common pleas of any	4109
county for, and upon proof of such failure the court may grant, an	4110
injunction restraining the acting as an investment adviser or,	4111
investment adviser representative, or state retirement system	4112
investment officer, or the issuance, sale, or offer for sale of	4113
any securities by the person or by its agents, employees,	4114
partners, officers, directors, or shareholders, until such failure	4115
has been remedied and other relief as the facts may warrant has	4116
been had. Such injunctive relief is available in addition to the	4117
other remedies provided for in sections 1707.01 to 1707.45 of the	4118
Revised Code.	4119

Where the person refusing to comply with such order of court	4120
is an issuer of securities, the court may enjoin the sale by any	4121
dealer of any securities of the issuer, and the division of	4122
securities may revoke the qualification of the securities of the	4123
issuer, or suspend or revoke the sale of any securities of the	4124
issuer which have been registered by description, and such	4125
securities shall not thereafter be sold by any dealer until the	4126
order of the court or of the division is withdrawn.	4127

Sec. 1707.261.  (A) If a court of common pleas grants an	4128
injunction pursuant to section 1707.26 of the Revised Code, after	4129
consultation with the attorney general the director of commerce	4130
may request that court to order the defendant or defendants that	4131
are subject to the injunction to make restitution or rescission to	4132
any purchaser or holder of securities damaged by the defendant's	4133
or defendants' violation of any provision of sections 1707.01 to	4134
1707.45 of the Revised Code.	4135

(B) If the court of common pleas is satisfied with the	4136
sufficiency of the director's request for restitution or	4137
rescission under division (A) of this section and with the	4138
sufficiency of the proof of a substantial violation of any	4139
provision of sections 1707.01 to 1707.45 of the Revised Code, or	4140
of the use of any act, practice, or transaction declared to be	4141
illegal or prohibited or defined as fraudulent by those sections	4142
or rules adopted under those sections by the division of	4143
securities, to the material prejudice of a purchaser or holder of	4144
securities, the court may order the defendant or defendants	4145
subject to the injunction to make restitution or rescission to any	4146
purchaser or holder of securities damaged by the defendant's or	4147
defendants' violation of sections 1707.01 to 1707.45 of the	4148
Revised Code.	4149

(C) A court order granting restitution or rescission based	4150
upon a request made pursuant to division (A) of this section shall	4151
meet the requirements of division (B) of this section and may not	4152
be based solely upon a final order issued by the division of	4153
securities pursuant to Chapter 119. of the Revised Code or upon an	4154
action to enforce a final order issued by the division pursuant to	4155
that chapter. Notwithstanding the foregoing provision, a request	4156
for restitution or rescission pursuant to division (A) of this	4157
section may concern the same acts, practices, or transactions that	4158
were, or may later be, the subject of a division of securities	4159
action for a violation of any provision of sections 1707.01 to	4160
1707.45 of the Revised Code. If a request for restitution or	4161
rescission pursuant to division (A) of this section concerns the	4162
same acts, practices, or transactions that were the subject of a	4163
final order issued by the division of securities pursuant to	4164
Chapter 119. of the Revised Code, the court shall review the	4165
request in accordance with division (B) of this section, and the	4166
standard of review in section 119.12 of the Revised Code shall not	4167
apply to the request.	4168

(D) No purchaser or holder of securities who is entitled to	4169
restitution or rescission under this section shall recover,	4170
pursuant to this section or any other proceeding, a total amount	4171
in excess of the person's purchase price for the securities sold	4172
in violation of sections 1707.01 to 1707.45 of the Revised Code.	4173

(E)(1) If a court of common pleas grants an injunction	4174
pursuant to section 1707.26 of the Revised Code against any state	4175
retirement system investment officer, after consultation with the	4176
attorney general, the director of commerce may request that court	4177
to order the state retirement system investment officer or	4178
officers that are subject to the injunction to make restitution to	4179
the state retirement system damaged by the state retirement system	4180
investment officer's or officers' violation of any provision of	4181
sections 1707.01 to 1707.45 of the Revised Code.	4182

(2) If the court of common pleas is satisfied with the	4183
sufficiency of the director's request for restitution under	4184
division (E)(1) of this section and with the sufficiency of the	4185
proof of a substantial violation of any provision of sections	4186
1707.01 to 1707.45 of the Revised Code, or of the use of any act,	4187
practice, or transaction declared to be illegal or prohibited or	4188
defined as fraudulent by those sections or rules adopted under	4189
those sections by the division of securities, to the material	4190
prejudice of a state retirement system, the court may order the	4191
state retirement system investment officer or officers subject to	4192
the injunction to make restitution to the state retirement system	4193
damaged by the state retirement system investment officer's or	4194
officers' violation of sections 1707.01 to 1707.45 of the Revised	4195
Code. A request for restitution pursuant to division (E)(1) of	4196
this section may concern the same acts, practices, or transactions	4197
that were, or may later be, the subject of a division of	4198
securities action for a violation of any provision of section	4199
1707.01 to 1707.45 of the Revised Code.	4200

Sec. 1707.39.  When any securities have been sold without	4201
compliance with sections 1707.01 to 1707.45 of the Revised Code,	4202
or any former law in force at the time of such sale, any	4203
interested person may apply in writing to the division of	4204
securities for the qualification of such securities under such	4205
sections. If it appears to the division that no person has been	4206
defrauded, prejudiced, or damaged by such noncompliance or sale	4207
and that no person will be defrauded, prejudiced, or damaged by	4208
such qualification, the division may permit such securities to be	4209
so qualified upon the payment of a fee of one hundred dollars plus	4210
a fee of one-fifth of one per cent of the aggregate price at which	4211
the securities have been sold in this state, which fee shall in no	4212
case be less than one hundred dollars nor more than two thousand	4213
dollars. In addition, the division may require the applicant to	4214
advance sufficient funds to pay the actual expenses of an	4215
examination or investigation by the division, whether to be	4216
conducted in this state or outside this state. An itemized	4217
statement of such expenses shall be furnished to the applicant.	4218

Such qualification shall estop the division from proceeding	4219
under division (E)(D) of section 1707.23 of the Revised Code	4220
against anyone who has violated division (C)(1) of section 1707.44	4221
of the Revised Code for acts within the scope of the application,	4222
or from proceeding with administrative action pursuant to section	4223
1707.13 of the Revised Code.	4224

Sec. 1707.431.  For purposes of this section, the following	4225
persons shall not be deemed to have effected, participated in, or	4226
aided the seller in any way in making, a sale or contract of sale	4227
in violation of sections 1707.01 to 1707.45 of the Revised Code:	4228

(A) Any attorney, accountant, or engineer whose performance	4229
is incidental to the practice of the person's profession;	4230

(B) Any person, other than an investment adviser or an,	4231
investment adviser representative, or state retirement system	4232
investment officer, who brings any issuer together with any	4233
potential investor, without receiving, directly or indirectly, a	4234
commission, fee, or other remuneration based on the sale of any	4235
securities by the issuer to the investor. Remuneration received by	4236
the person solely for the purpose of offsetting the reasonable	4237
out-of-pocket costs incurred by the person shall not be deemed a	4238
commission, fee, or other remuneration.	4239

Any person claiming exemption under this division for a	4240
publicly advertised meeting shall file a notice with the division	4241
of securities indicating an intent to cause or hold such a meeting	4242
at least twenty-one days prior to the meeting. The division may,	4243
upon receipt of such notice, issue an order denying the	4244
availability of an exemption under this division not more than	4245
fourteen days after receipt of the notice based on a finding that	4246
the applicant is not entitled to the exemption. Notwithstanding	4247
the notice described in this section, a failure to file the notice	4248
does not create a presumption that a person was participating in	4249
or aiding in the making of a sale or contract of sale in violation	4250
of this chapter.	4251

(C) Any person whom the division exempts from this provision	4252
by rule.	4253

Sec. 1707.44.  (A)(1) No person shall engage in any act or	4254
practice that violates division (A), (B), or (C) of section	4255
1707.14 of the Revised Code, and no salesperson shall sell	4256
securities in this state without being licensed pursuant to	4257
section 1707.16 of the Revised Code.	4258

(2) No person shall engage in any act or practice that	4259
violates division (A) of section 1707.141 or section 1707.161 of	4260
the Revised Code.	4261

(3) No person shall engage in any act or practice that	4262
violates section 1707.162 of the Revised Code.	4263

(B) No person shall knowingly make or cause to be made any	4264
false representation concerning a material and relevant fact, in	4265
any oral statement or in any prospectus, circular, description,	4266
application, or written statement, for any of the following	4267
purposes:	4268

(1) Registering securities or transactions, or exempting	4269
securities or transactions from registration, under this chapter;	4270

(2) Securing the qualification of any securities under this	4271
chapter;	4272

(3) Procuring the licensing of any dealer, salesperson,	4273
investment adviser, or investment adviser representative, or state	4274
retirement system investment officer under this chapter;	4275

(4) Selling any securities in this state;

4276

(5) Advising for compensation, as to the value of securities	4277
or as to the advisability of investing in, purchasing, or selling	4278
securities;	4279

(6) Submitting a notice filing to the division under division	4280
(X) of section 1707.03 or section 1707.092 or 1707.141 of the	4281
Revised Code.	4282

(C) No person shall knowingly sell, cause to be sold, offer	4283
for sale, or cause to be offered for sale, any security which	4284
comes under any of the following descriptions:	4285

(1) Is not exempt under section 1707.02 of the Revised Code,	4286
nor the subject matter of one of the transactions exempted in	4287
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not	4288
been registered by coordination or qualification, and is not the	4289
subject matter of a transaction that has been registered by	4290
description;	4291

(2) The prescribed fees for registering by description, by	4292
coordination, or by qualification have not been paid in respect to	4293
such security;	4294

(3) The person has been notified by the division, or has	4295
knowledge of the notice, that the right to buy, sell, or deal in	4296
such security has been suspended or revoked, or that the	4297
registration by description, by coordination, or by qualification	4298
under which it may be sold has been suspended or revoked;	4299

(4) The offer or sale is accompanied by a statement that the	4300
security offered or sold has been or is to be in any manner	4301
indorsed by the division.	4302

(D) No person who is an officer, director, or trustee of, or	4303
a dealer for, any issuer, and who knows such issuer to be	4304
insolvent in that the liabilities of the issuer exceed its assets,	4305
shall sell any securities of or for any such issuer, without	4306
disclosing the fact of the insolvency to the purchaser.	4307

(E) No person with intent to aid in the sale of any	4308
securities on behalf of the issuer, shall knowingly make any	4309
representation not authorized by such issuer or at material	4310
variance with statements and documents filed with the division by	4311
such issuer.	4312

(F) No person, with intent to deceive, shall sell, cause to	4313
be sold, offer for sale, or cause to be offered for sale, any	4314
securities of an insolvent issuer, with knowledge that such issuer	4315
is insolvent in that the liabilities of the issuer exceed its	4316
assets, taken at their fair market value.	4317

(G) No person in purchasing or selling securities shall	4318
knowingly engage in any act or practice that is, in this chapter,	4319
declared illegal, defined as fraudulent, or prohibited.	4320

(H) No licensed dealer shall refuse to buy from, sell to, or	4321
trade with any person because the person appears on a blacklist	4322
issued by, or is being boycotted by, any foreign corporate or	4323
governmental entity, nor sell any securities of or for any issuer	4324
who is known in relation to the issuance or sale of the securities	4325
to have engaged in such practices.	4326

(I) No dealer in securities, knowing that the dealer's	4327
liabilities exceed the reasonable value of the dealer's assets,	4328
shall accept money or securities, except in payment of or as	4329
security for an existing debt, from a customer who is ignorant of	4330
the dealer's insolvency, and thereby cause the customer to lose	4331
any part of the customer's securities or the value of those	4332
securities, by doing either of the following without the	4333
customer's consent:	4334

(1) Pledging, selling, or otherwise disposing of such	4335
securities, when the dealer has no lien on or any special property	4336
in such securities;	4337

(2) Pledging such securities for more than the amount due, or	4338
otherwise disposing of such securities for the dealer's own	4339
benefit, when the dealer has a lien or indebtedness on such	4340
securities.	4341

It is an affirmative defense to a charge under this division	4342
that, at the time the securities involved were pledged, sold, or	4343
disposed of, the dealer had in the dealer's possession or control,	4344
and available for delivery, securities of the same kinds and in	4345
amounts sufficient to satisfy all customers entitled to the	4346
securities, upon demand and tender of any amount due on the	4347
securities.	4348

(J) No person, with purpose to deceive, shall make, issue,	4349
publish, or cause to be made, issued, or published any statement	4350
or advertisement as to the value of securities, or as to alleged	4351
facts affecting the value of securities, or as to the financial	4352
condition of any issuer of securities, when the person knows that	4353
such statement or advertisement is false in any material respect.	4354

(K) No person, with purpose to deceive, shall make, record,	4355
or publish or cause to be made, recorded, or published, a report	4356
of any transaction in securities which is false in any material	4357
respect.	4358

(L) No dealer shall engage in any act that violates the	4359
provisions of section 15(c) or 15(g) of the "Securities Exchange	4360
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule	4361
or regulation promulgated by the securities and exchange	4362
commission thereunder. If, subsequent to October 11, 1994,	4363
additional amendments to section 15(c) or 15(g) are adopted, or	4364
additional rules or regulations are promulgated pursuant to such	4365
sections, the division of securities shall, by rule, adopt the	4366
amendments, rules, or regulations, unless the division finds that	4367
the amendments, rules, or regulations are not necessary for the	4368
protection of investors or in the public interest.	4369

(M)(1) No investment adviser or investment adviser	4370
representative shall do any of the following:	4371

(a) Employ any device, scheme, or artifice to defraud any	4372
person;	4373

(b) Engage in any act, practice, or course of business that	4374
operates or would operate as a fraud or deceit upon any person;	4375

(c) In acting as principal for the investment adviser's or	4376
investment adviser representative's own account, knowingly sell	4377
any security to or purchase any security from a client, or in	4378
acting as salesperson for a person other than such client,	4379
knowingly effect any sale or purchase of any security for the	4380
account of such client, without disclosing to the client in	4381
writing before the completion of the transaction the capacity in	4382
which the investment adviser or investment adviser representative	4383
is acting and obtaining the consent of the client to the	4384
transaction. Division (M)(1)(c) of this section does not apply to	4385
any investment adviser registered with the securities and exchange	4386
commission under section 203 of the "Investment Advisers Act of	4387
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a	4388
licensed dealer or salesperson if the licensed dealer or	4389
salesperson is not acting as an investment adviser or investment	4390
adviser representative in relation to the transaction.	4391

(d) Engage in any act, practice, or course of business that	4392
is fraudulent, deceptive, or manipulative. The division of	4393
securities may adopt rules reasonably designed to prevent such	4394
acts, practices, or courses of business that are fraudulent,	4395
deceptive, or manipulative.	4396

(2) No investment adviser or investment adviser	4397
representative licensed or required to be licensed under this	4398
chapter shall take or have custody of any securities or funds of	4399
any person, except as provided in rules adopted by the division.	4400

(3) In the solicitation of clients or prospective clients, no	4401
person shall make any untrue statement of a material fact or omit	4402
to state a material fact necessary in order to make the statements	4403
made not misleading in light of the circumstances under which the	4404
statements were made.	4405

(N) No person knowingly shall influence, coerce, manipulate,	4406
or mislead any person engaged in the preparation, compilation,	4407
review, or audit of financial statements to be used in the	4408
purchase or sale of securities for the purpose of rendering the	4409
financial statements materially misleading.	4410

(O) No state retirement system investment officer shall do	4411
any of the following:	4412

(1) Employ any device, scheme, or artifice to defraud any	4413
state retirement system;	4414

(2) Engage in any act, practice, or course of business that	4415
operates or would operate as a fraud or deceit on any state	4416
retirement system;	4417

(3) Engage in any act, practice, or course of business that	4418
is fraudulent, deceptive, or manipulative. The division of	4419
securities may adopt rules reasonably designed to prevent such	4420
acts, practices, or courses of business as are fraudulent,	4421
deceptive, or manipulative;	4422

(4) Knowingly fail to comply with any policy adopted	4423
regarding the officer established pursuant to section 145.094,	4424
742.104, 3307.043, 3309.043, or 5505.066 of the Revised Code.	4425

Sec. 1707.46.  The principal executive officer of the	4426
division of securities shall be the commissioner of securities,	4427
who shall be appointed by the director of commerce. The	4428
commissioner of securities shall enforce all the laws and	4429
administrative rules enacted or adopted to regulate the sale of	4430
bonds, stocks, and other securities and to prevent fraud in such	4431
sales. The commissioner also shall enforce all the laws and	4432
administrative rules enacted or adopted to regulate investment	4433
advisers and, investment adviser representatives, and state	4434
retirement system investment officers and to prevent fraud in	4435
their acts, practices, and transactions.	4436

The commissioner shall be paid at a rate not less than pay	4437
range 47 set out in schedule E-2 of section 124.152 of the Revised	4438
Code, to be paid as other operating expenses of the division.	4439

Sec. 3307.03.  A state teachers retirement system is hereby	4440
established for the teachers of the public schools of the state	4441
which includes the several funds created and placed under the	4442
management of a state teachers retirement board for the payment of	4443
retirement allowances and other benefits under Chapter 3307. of	4444
the Revised Code. The board may sue and be sued, plead and be	4445
impleaded, contract and be contracted with, and do all things	4446
necessary to carry out such sections. All of its business shall be	4447
transacted, and all of its funds invested, all warrants for money	4448
drawn and payments made, and all of its cash, securities, and	4449
other property shall be held in the name of the board or in the	4450
name of its nominee, provided that nominees are authorized by	4451
retirement board resolution for the purpose of facilitating the	4452
ownership and transfer of investments and are restricted to	4453
members of the board, the executive director, and designated	4454
members of the staff, or a partnership or corporation composed of	4455
any of the foregoing persons.	4456

If the Ohio retirement study council establishes a uniform	4457
format for any report the board is required to submit to the	4458
council, the board shall submit the report in that format.	4459

Sec. 3307.041. The state teachers retirement board shall do	4460
all of the following:	4461

(A) In consultation with the Ohio ethics commission, review	4462
any existing policy regarding the travel and payment of travel	4463
expenses of members and employees of the state teachers retirement	4464
board and adopt rules in accordance with section 3307.04 of the	4465
Revised Code establishing a new or revised policy regarding travel	4466
and payment of travel expenses;	4467

(B) If the board intends to award a bonus to any employee of	4468
the board, adopt rules in accordance with section 3307.04 of the	4469
Revised Code establishing a policy regarding employee bonuses;	4470

(C) Provide copies of the rules adopted under divisions (A)	4471
and (B) of this section to each member of the Ohio retirement	4472
study council;	4473

(D) Submit to the Ohio retirement study council a proposed	4474
operating budget, including an administrative budget for the	4475
board, for the next immediate fiscal year and adopt that budget	4476
not earlier than sixty days after it is submitted to the council;	4477

(E) Submit to the council a plan describing how the board	4478
will improve the dissemination of public information pertaining to	4479
the board.	4480

Sec. 3307.042. The state teachers retirement board shall, in	4481
consultation with the Ohio ethics commission, develop an ethics	4482
policy. The board shall submit this policy to the Ohio retirement	4483
study council for approval.	4484

The council shall review the policy and, if the council	4485
determines, upon the advice of the Ohio ethics commission, that	4486
the policy is adequate, approve the policy. If the council	4487
determines that the policy is inadequate, it shall specify the	4488
revisions to be made and the board shall submit a revised policy.	4489
If the council approves the revised policy, the board shall adopt	4490
it. If not, the board shall make any further revisions required by	4491
the council and adopt the policy.	4492

The board periodically shall provide ethics training to	4493
members and employees of the board. The training shall include	4494
training regarding the requirements and prohibitions of Chapter	4495
102. of the Revised Code and sections 2921.42 and 2921.43 of the	4496
Revised Code and any other training the board considers	4497
appropriate.	4498

The board shall establish a procedure to ensure that each	4499
employee of the board is informed of the procedure for filing a	4500
complaint alleging violation of Chapter 102. of the Revised Code	4501
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	4502
ethics commission or the appropriate prosecuting attorney.	4503

Sec. 3307.043.  (A) The state teachers retirement board shall	4504
designate a person who is a licensed state retirement system	4505
investment officer to be the chief investment officer for the	4506
state teachers retirement system. The board shall notify the	4507
division of securities of the department of commerce in writing of	4508
its designation and of any change in its designation within ten	4509
calendar days of the designation or change.	4510

(B) The chief investment officer shall reasonably supervise	4511
the licensed state retirement system investment officers and other	4512
persons employed by the state teachers retirement system with a	4513
view toward preventing violations of Chapter 1707. of the Revised	4514
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and	4515
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.	4516
and following, and the "Securities Exchange Act of 1934," 48 Stat.	4517
881, 15 U.S.C. 78a, and following, and the rules and regulations	4518
promulgated under those statutes. This duty of reasonable	4519
supervision shall include the adoption, implementation, and	4520
enforcement of written policies and procedures reasonably designed	4521
to prevent persons employed by the state teachers retirement	4522
system from misusing material, nonpublic information in violation	4523
of those laws, rules, and regulations.	4524

For purposes of this division, no chief investment officer	4525
shall be considered to have failed to satisfy the officer's duty	4526
of reasonable supervision if the officer has done all of the	4527
following:	4528

(1) Adopted and implemented written procedures, and a system	4529
for applying the procedures, that would reasonably be expected to	4530
prevent and detect, insofar as practicable, any violation by its	4531
licensed investment officers and other persons employed by the	4532
state teachers retirement system;	4533

(2) Reasonably discharged the duties and obligations	4534
incumbent on the chief investment officer by reason of the	4535
established procedures and the system for applying the procedures	4536
when the officer had no reasonable cause to believe that there was	4537
a failure to comply with the procedures and systems;	4538

(3) Reviewed, at least annually, the adequacy of the policies	4539
and procedures established pursuant to this section and the	4540
effectiveness of their implementation.	4541

(C) The chief investment officer shall ensure that securities	4542
transactions are executed in such a manner that the state teachers	4543
retirement system's total costs or proceeds in each transaction	4544
are the most favorable under the circumstances.	4545

For purposes of this division, no chief investment officer	4546
shall be considered to have failed to satisfy the officer's duty	4547
of best execution if the officer has done both of the following:	4548

(1) Adopted and implemented a written policy that outlines	4549
the criteria used to select broker-dealers that execute securities	4550
transactions on behalf of the state teachers retirement system,	4551
which criteria shall include all of the following:	4552

(a) Commissions charged by the broker-dealer, both in the	4553
aggregate and on a per share basis;	4554

(b) The execution speed and trade settlement capabilities of	4555
the broker-dealer;	4556

(c) The responsiveness, reliability, and integrity of the	4557
broker-dealer;	4558

(d) The nature and value of research provided by the	4559
broker-dealer;	4560

(e) Any special capabilities of the broker-dealer.

4561

(2) Reviewed, at least annually, the performance of	4562
broker-dealers that execute securities transactions on behalf of	4563
the state teachers retirement system.	4564

Sec. 3307.05.  The state teachers retirement board shall	4565
consist of the following nine members:	4566

(A) The superintendent of public instruction;or a designee	4567
of the superintendent who has the following qualifications:	4568

(1) The designee is a resident of this state.

4569

(2) Within the three years immediately preceding the	4570
appointment, the designee has not been employed by the public	4571
employees retirement system, police and fire pension fund, state	4572
teachers retirement system, school employees retirement system, or	4573
state highway patrol retirement system or by any person,	4574
partnership, or corporation that has provided to one of those	4575
retirement systems services of a financial or investment nature,	4576
including the management, analysis, supervision, or investment of	4577
assets.	4578

(3) The designee has direct experience in the management,	4579
analysis, supervision, or investment of assets.	4580

(B) The auditor of state;

4581

(C) The attorney generaltreasurer of state;

4582

(D) Five members, known as teacher members, who shall be	4583
members of the state teachers retirement system;	4584

(E) ATwo former membermembers of the system, known as the	4585
retired teacher membermembers, who shall be a superannuate and	4586
superannuates who isare not otherwise employed in a position	4587
positions requiring the retired teacher memberthem to make	4588
contributions to the system;	4589

(F) One member, known as the school board member, appointed	4590
by the governor, who shall be a member of a city, local, exempted	4591
village, or joint vocational school board district board of	4592
education or a member of an educational service center governing	4593
board, but need not be a member of the retirement system.	4594

Sec. 3307.051. Each newly elected member of the state	4595
teachers retirement board and each individual appointed to fill a	4596
vacancy on the board, shall, not later than ninety days after	4597
commencing service as a board member, complete the orientation	4598
program component of the retirement board member education program	4599
established under section 171.50 of the Revised Code.	4600

Each member of the board who has served a year or longer as a	4601
board member shall, not less than twice each year, attend one or	4602
more programs that are part of the continuing education component	4603
of the retirement board member education program established under	4604
section 171.50 of the Revised Code.	4605

Sec. 3307.052. A person who served as an elected or appointed	4606
member of the state teachers retirement board for one or more	4607
entire fiscal years in fiscal years 2000, 2001, or 2002 is	4608
ineligible for re-election or reappointment to the board if the	4609
person has accepted reimbursements for travel and travel-related	4610
expenses from the board that have an annual average of more than	4611
ten thousand dollars for those fiscal years.	4612

Sec. 3307.06.  (A) Annually on the first Monday of May, one	4613
teacher member, as defined in division (D) of section 3307.05 of	4614
the Revised Code, shall be elected by ballot to the state teachers	4615
retirement board, except that, beginning with the annual election	4616
for teacher members in May, 1978, and in the annual election of	4617
each fourth year thereafter, two teacher members shall be elected	4618
to the board. Elected teacher members shall begin their respective	4619
terms of office on the first day of September following their	4620
election and shall serve for a term of four years.	4621

(B) The retired teacher membermembers of the board, as	4622
defined in division (E) of section 3307.05 of the Revised Code,	4623
shall be elected for a term of four years, except that the initial	4624
retired teacher member shall be elected for a term of three years.	4625
The retired teacher membermembers shall be elected to the board	4626
at the annual election for teacher members of the board, as	4627
provided in division (A) of this section, in the year in which the	4628
term of the current retired teacher membermembers would expire.	4629
The retired teacher membermembers shall begin his termtheir	4630
respective terms of office on the first day of September following	4631
histheir election.	4632

No teacher member of the board who retires while a member of	4633
the board shall be eligible to become a retired teacher member of	4634
the board for three years after the date of the member's	4635
retirement.	4636

(C) If a vacancy occurs during the term of office of any	4637
elected member of the board, the remaining members of the board	4638
shall elect a successor member who. On certification of the	4639
election results under section 111.30 of the Revised Code the	4640
successor member shall hold office for the remainder of his	4641
predecessor's termuntil the next board election that occurs not	4642
less than ninety days after the successor member's election. The	4643
successor member shall qualify for board membership under the same	4644
division of section 3307.05 of the Revised Code as histhe	4645
member's predecessor in office. Elections under this division	4646
shall be conducted under the supervision of the secretary of state	4647
pursuant to section 111.30 of the Revised Code.	4648

(D) If as a result of changed circumstances an elected member	4649
of the board would no longer qualify for board membership under	4650
that division of section 3307.05 of the Revised Code on the basis	4651
of which hethe member was elected, or if such a member fails to	4652
attend the meetings of the board for four months or longer,	4653
without being excused, histhe member's position on the board	4654
shall be considered vacant, and a successor member shall be chosen	4655
elected, under division (C) of this section, for the remainder of	4656
histhe unexpired term.	4657

Sec. 3307.061. A teacher member or retired teacher member of	4658
the state teachers retirement board who is charged with committing	4659
a felony, a theft offense as defined in section 2913.01 of the	4660
Revised Code, or a violation of section 102.02, 102.03, 102.04,	4661
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or	4662
2921.44 of the Revised Code shall be suspended from participation	4663
on the board for the period during which the charges are pending.	4664
If the charges are dismissed, the member is found not guilty, or	4665
the charges are otherwise resolved in a manner not resulting in	4666
the member being convicted of or pleading guilty to an offense of	4667
that nature, the suspension shall end, and the member may	4668
participate on the board. If the member pleads guilty to or is	4669
convicted of the offense, the position of the member on the board	4670
shall be deemed vacant. A person who has pleaded guilty to or been	4671
convicted of an offense of that nature is ineligible for election	4672
to the office of teacher or retired teacher member of the state	4673
teachers retirement board.	4674

Sec. 3307.07.  All elections of members of the state teachers	4675
retirement board shall be held under the direction of the board in	4676
accordance with rules adopted under section 111.30 of the Revised	4677
Code. Any member of the state teachers retirement system, who has	4678
been nominated by a petition that is signed by five hundred or	4679
more members of the system and certified under section 111.30 of	4680
the Revised Code, shall be eligible for election as a teacher	4681
member of the board. The petition shall contain the signatures of	4682
twenty or more members of the system from each of at least ten	4683
counties wherein members of the system are employed.	4684

Any retired teacher who is a superannuate and a resident of	4685
Ohio is eligible for election as thea retired teacher member of	4686
the board, if such retired teacher has been nominated by a	4687
petition that is signed by five hundred or more retired teachers,	4688
who are also superannuates, and certified under section 111.30 of	4689
the Revised Code. The petition shall contain the signatures of	4690
twenty or more retired teachers from each of at least ten counties	4691
wherein superannuates under the system reside.	4692

The board shall place the name of any eligible candidate upon	4693
the appropriate ballot as a regular candidate. At any election,	4694
qualified voters, as defined in this section, may vote for the	4695
regular candidates or for other eligible candidates, in which case	4696
the names of such persons shall be written upon the appropriate	4697
ballots, except that members of the system and former members of	4698
the system who are superannuates shall vote respectively for	4699
teacher members and the retired teacher membermembers of the	4700
board. The candidate who receives the highest number of votes for	4701
any term of office shall be elected to the board on certification	4702
of the election results under section 111.30 of the Revised Code.	4703
If, at any election, teacher members or retired teacher members	4704
are to be elected for concurrent terms, eligible candidates shall	4705
be placed on the ballot, and the candidates who receive the	4706
highest numbers of votes shall be elected to the board on	4707
certification of the election results under section 111.30 of the	4708
Revised Code.	4709

Elected members of the board shall be elected on the basis of	4710
the total number of ballots cast by qualified voters, who shall	4711
consist of members of the system and former members of the system	4712
who are superannuates.	4713

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

4714

(1) "Campaign committee" means a candidate or a combination	4715
of two or more persons authorized by a candidate to receive	4716
contributions and in-kind contributions and make expenditures on	4717
behalf of the candidate.	4718

(2) "Candidate" means an individual who has been nominated	4719
pursuant to section 3307.07 of the Revised Code for election to	4720
the state teachers retirement board or who is seeking to be	4721
elected to fill a vacancy on the board pursuant to division (D) of	4722
section 3307.06 of the Revised Code.	4723

(3) "Contribution" means a loan, gift, deposit, forgiveness	4724
of indebtedness, donation, advance, payment, transfer of funds or	4725
transfer of anything of value including a transfer of funds from	4726
an inter vivos or testamentary trust or decedent's estate, and the	4727
payment by any person other than the person to whom the services	4728
are rendered for the personal services of another person, which	4729
contribution is made, received, or used for the purpose of	4730
influencing the results of an election to the state teachers	4731
retirement board under section 3307.07 of the Revised Code or the	4732
results of an election to fill a vacancy on the board pursuant to	4733
division (D) of section 3307.06 of the Revised Code.	4734
"Contribution" does not include:	4735

(a) Services provided without compensation by individuals	4736
volunteering a portion or all of their time on behalf of a person;	4737

(b) Ordinary home hospitality;

4738

(c) The personal expenses of a volunteer paid for by that	4739
volunteer campaign worker.	4740

(4) "Election day" means the following, as appropriate to the	4741
situation:	4742

(a) The first Monday in May of a year for which section	4743
3307.06 of the Revised Code specifies that an election for a	4744
member of the state teachers retirement board be held;	4745

(b) If, pursuant to section 3307.071 of the Revised Code, no	4746
election is held, the first Monday in May of a year that the	4747
election would have been held if not for section 3307.071 of the	4748
Revised Code.	4749

(5) "Expenditure" means the disbursement or use of a	4750
contribution for the purpose of influencing the results of an	4751
election to the state teachers retirement board under section	4752
3307.07 of the Revised Code or the results of an election to fill	4753
a vacancy on the board pursuant to division (D) of section 3307.06	4754
of the Revised Code.	4755

(6) "Independent expenditure" means an expenditure by an	4756
individual, partnership, or other entity advocating the election	4757
or defeat of an identified candidate or candidates, that is not	4758
made with the consent of, in coordination, cooperation, or	4759
consultation with, or at the request or suggestion of any	4760
candidate or candidates or of the campaign committee or agent of	4761
the candidate or candidates. An independent expenditure shall not	4762
be construed as being a contribution. As used in division (A)(6)	4763
of this section:	4764

(a) "Advocating" means any communication containing a message	4765
advocating election or defeat.	4766

(b) "Identified candidate" means that the name of the	4767
candidate appears, a photograph or drawing of the candidate	4768
appears, or the identity of the candidate is otherwise apparent by	4769
unambiguous reference.	4770

(c) "Made in coordination, cooperation, or consultation with,	4771
or at the request or suggestion of, any candidate or the campaign	4772
committee or agent of the candidate" means made pursuant to any	4773
arrangement, coordination, or direction by the candidate, the	4774
candidate's campaign committee, or the candidate's agent prior to	4775
the publication, distribution, display, or broadcast of the	4776
communication. An expenditure is presumed to be so made when it is	4777
any of the following:	4778

(i) Based on information about the candidate's plans,	4779
projects, or needs provided to the person making the expenditure	4780
by the candidate, or by the candidate's campaign committee or	4781
agent, with a view toward having an expenditure made;	4782

(ii) Made by or through any person who is, or has been,	4783
authorized to raise or expend funds, who is, or has been, an	4784
officer of the candidate's campaign committee, or who is, or has	4785
been, receiving any form of compensation or reimbursement from the	4786
candidate or the candidate's campaign committee or agent;	4787

(iii) Made by a political party in support of a candidate,	4788
unless the expenditure is made by a political party to conduct	4789
voter registration or voter education efforts.	4790

(d) "Agent" means any person who has actual oral or written	4791
authority, either express or implied, to make or to authorize the	4792
making of expenditures on behalf of a candidate, or means any	4793
person who has been placed in a position with the candidate's	4794
campaign committee or organization such that it would reasonably	4795
appear that in the ordinary course of campaign-related activities	4796
the person may authorize expenditures.	4797

(7) "In-kind contribution" means anything of value other than	4798
money that is used to influence the results of an election to the	4799
state teachers retirement board under section 3307.07 of the	4800
Revised Code or the results of an election to fill a vacancy on	4801
the board pursuant to division (D) of section 3307.06 of the	4802
Revised Code or is transferred to or used in support of or in	4803
opposition to a candidate and that is made with the consent of, in	4804
coordination, cooperation, or consultation with, or at the request	4805
or suggestion of the benefited candidate. The financing of the	4806
dissemination, distribution, or republication, in whole or part,	4807
of any broadcast or of any written, graphic, or other form of	4808
campaign materials prepared by the candidate, the candidate's	4809
campaign committee, or their authorized agents is an in-kind	4810
contribution to the candidate and an expenditure by the candidate.	4811

(8) "Personal expenses" includes ordinary expenses for	4812
accommodations, clothing, food, personal motor vehicle or	4813
airplane, and home telephone.	4814

(B) Except as otherwise provided in division (D) of this	4815
section, each candidate who, or whose campaign committee, receives	4816
a contribution or in-kind contribution or makes an expenditure in	4817
connection with the candidate's efforts to be elected to the state	4818
teachers retirement board shall file with the secretary of state	4819
two complete, accurate, and itemized statements setting forth in	4820
detail the contributions, in-kind contributions, and expenditures.	4821
The statements shall be filed regardless of whether, pursuant to	4822
section 3307.071 of the Revised Code, no election is held. The	4823
statements shall be made on a form prescribed under section 111.30	4824
of the Revised Code. Every expenditure shall be vouched for by a	4825
receipted bill, stating the purpose of the expenditures, that	4826
shall be filed with the statement; a canceled check with a	4827
notation of the purpose of the expenditure is a receipted bill for	4828
purposes of this division.	4829

The first statement shall be filed not later than four p.m.	4830
on the day that is twelve days before election day. The second	4831
statement shall be filed not sooner than the day that is eight	4832
days after election day and not later than thirty-eight days after	4833
election day. The first statement shall reflect contributions and	4834
in-kind contributions received and expenditures made to the close	4835
of business on the twentieth day before election day. The second	4836
statement shall reflect contributions and in-kind contributions	4837
received and expenditures made during the period beginning on the	4838
nineteenth day before election day and ending on the close of	4839
business on the seventh day after election day.	4840

(C) Each individual, partnership, or other entity who makes	4841
an independent expenditure in connection with the candidate's	4842
efforts to be elected to the state teachers retirement board shall	4843
file with the secretary of state two complete, accurate, and	4844
itemized statements setting forth in detail the independent	4845
expenditures. The statements shall be filed regardless of whether,	4846
pursuant to section 3307.071 of the Revised Code, no election is	4847
held. The statements shall be made on a form prescribed under	4848
section 111.30 of the Revised Code.	4849

The first statement shall be filed not later than four p.m.	4850
on the day that is twelve days before election day. The second	4851
statement shall be filed not sooner than the day that is eight	4852
days after election day and not later than thirty-eight days after	4853
election day. The first statement shall reflect independent	4854
expenditures made to the close of business on the twentieth day	4855
before election day. The second statement shall reflect	4856
independent expenditures made during the period beginning on the	4857
nineteenth day before election day and ending on the close of	4858
business on the seventh day after election day.	4859

(D) Each candidate who, or whose campaign committee, receives	4860
a contribution or in-kind contribution or makes an expenditure in	4861
connection with the candidate's efforts to be elected to fill a	4862
vacancy in the public employees retirement board pursuant to	4863
division (D) of section 3307.06 of the Revised Code shall file	4864
with the secretary of state a complete, accurate, and itemized	4865
statement setting forth in detail the contributions, in-kind	4866
contributions, and expenditures. The statement shall be made on a	4867
form prescribed under section 111.30 of the Revised Code. Every	4868
expenditure shall be vouched for by a receipted bill, stating the	4869
purpose of the expenditures, that shall be filed with the	4870
statement; a canceled check with a notation of the purpose of the	4871
expenditure is a receipted bill for purposes of this division.	4872

The statement shall be filed within thirty-eight days after	4873
the day the candidate takes office. The statement shall reflect	4874
contributions and in-kind contributions received and expenditures	4875
made to the close of business on the seventh day after the day the	4876
candidate takes office.	4877

Sec. 3307.073. (A) No person shall knowingly fail to file a	4878
complete and accurate campaign finance statement or independent	4879
expenditure statement in accordance with section 3307.072 of the	4880
Revised Code.	4881

(B) No person, during the course of a person seeking	4882
nomination for, and during any campaign for, election to the state	4883
teachers retirement board, shall knowingly and with intent to	4884
affect the nomination or the outcome of the campaign do any of the	4885
following by means of campaign materials, an advertisement on	4886
radio or television or in a newspaper or periodical, a public	4887
speech, press release, or otherwise:	4888

(1) With regard to a candidate, identify the candidate in a	4889
manner that implies that the candidate is a member of the board or	4890
use the term "re-elect" when the candidate is not currently a	4891
member of the board;	4892

(2) Make a false statement concerning the formal schooling or	4893
training completed or attempted by a candidate; a degree, diploma,	4894
certificate, scholarship, grant, award, prize, or honor received,	4895
earned, or held by a candidate; or the period of time during which	4896
a candidate attended any school, college, community technical	4897
school, or institution;	4898

(3) Make a false statement concerning the professional,	4899
occupational, or vocational licenses held by a candidate, or	4900
concerning any position the candidate held for which the candidate	4901
received a salary or wages;	4902

(4) Make a false statement that a candidate or public	4903
official has been indicted or convicted of a theft offense,	4904
extortion, or other crime involving financial corruption or moral	4905
turpitude;	4906

(5) Make a statement that a candidate has been indicted for	4907
any crime or has been the subject of a finding by the Ohio	4908
elections commission without disclosing the outcome of any legal	4909
proceedings resulting from the indictment or finding;	4910

(6) Make a false statement that a candidate or official has a	4911
record of treatment or confinement for mental disorder;	4912

(7) Make a false statement that a candidate or official has	4913
been subjected to military discipline for criminal misconduct or	4914
dishonorably discharged from the armed services;	4915

(8) Falsely identify the source of a statement, issue	4916
statements under the name of another person without authorization,	4917
or falsely state the endorsement of or opposition to a candidate	4918
by a person or publication;	4919

(9) Make a false statement concerning the voting record of a	4920
candidate or public official;	4921

(10) Post, publish, circulate, distribute, or otherwise	4922
disseminate a false statement concerning a candidate, either	4923
knowing the same to be false or with reckless disregard of whether	4924
it was false or not, if the statement is designed to promote the	4925
election, nomination, or defeat of the candidate.	4926

Sec. 3307.074. The secretary of state, or any person acting	4927
on personal knowledge and subject to the penalties of perjury, may	4928
file a complaint with the Ohio elections commission alleging a	4929
violation of section 3307.073 of the Revised Code. The complaint	4930
shall be made on a form prescribed and provided by the commission.	4931

On receipt of a complaint under this section, the commission	4932
shall hold a hearing open to the public to determine whether the	4933
violation alleged in the complaint has occurred. The commission	4934
may administer oaths and issue subpoenas to any person in the	4935
state compelling the attendance of witnesses and the production of	4936
relevant papers, books, accounts, and reports. On the refusal of	4937
any person to obey a subpoena or to be sworn or to answer as a	4938
witness, the commission may apply to the court of common pleas of	4939
Franklin county under section 2705.03 of the Revised Code. The	4940
court shall hold contempt proceedings in accordance with Chapter	4941
2705. of the Revised Code.	4942

The commission shall provide the person accused of the	4943
violation at least seven days prior notice of the time, date, and	4944
place of the hearing. The accused may be represented by an	4945
attorney and shall have an opportunity to present evidence, call	4946
witnesses, and cross-examine witnesses.	4947

At the hearing, the commission shall determine whether the	4948
violation alleged in the complaint has occurred. If the commission	4949
determines that a violation of division (A) of section 3307.073 of	4950
the Revised Code has occurred, the commission shall either impose	4951
a fine under section 3307.99 of the Revised Code or enter a	4952
finding that good cause has been shown not to impose the fine. If	4953
the commission determines that a violation of division (B) of	4954
section 3307.073 of the Revised Code has occurred, the commission	4955
shall impose the fine described in section 3307.99 of the Revised	4956
Code, refer the matter to the appropriate prosecutor, or enter a	4957
finding that good cause has been shown not to impose a fine or	4958
refer the matter to a prosecutor.	4959

Sec. 3307.11.  The state teachers retirement board shall	4961
elect from its membership, a chairperson and a vice-chairperson.	4962
The board shall employ an executive director who shall serve as	4963
secretary, and shall employ other persons necessary to operate the	4964
system and to fulfill the board's duties and responsibilities	4965
under Chapter 3307. of the Revised Code. The	4966

Effective ninety days after the effective date of this	4967
amendment, the board may not employ a state retirement system	4968
investment officer, as defined in section 1707.01 of the Revised	4969
Code, who does not hold a valid state retirement system investment	4970
officer license issued by the division of securities in the	4971
department of commerce.	4972

The compensation of all employees and all other expenses of	4973
the board necessary for the proper operation of the system shall	4974
be paid in such amounts as the board approves.	4975

Every expense voucher of an employee, officer, or board	4976
member of the state teachers retirement system shall itemize all	4977
purchases and expenditures.	4978

The board shall receive all applications for retirement under	4979
the plans described in section 3307.031 of the Revised Code, shall	4980
provide for the payment of all retirement allowances and other	4981
benefits payable under this chapter, and shall make other	4982
expenditures authorized by this chapter.	4983

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

4984

(1) "Personal history record" means information maintained by	4985
the state teachers retirement board on an individual who is a	4986
member, former member, contributor, former contributor, retirant,	4987
or beneficiary that includes the address, telephone number, social	4988
security number, record of contributions, correspondence with the	4989
state teachers retirement system, or other information the board	4990
determines to be confidential.	4991

(2) "Retirant" has the same meaning as in section 3307.50 of	4992
the Revised Code.	4993

(B) The records of the board shall be open to public	4994
inspection, except for the following, which shall be excluded,	4995
except with the written authorization of the individual concerned:	4996

(1) The individual's personal records provided for in section	4997
3307.23 of the Revised Code;	4998

(2) The individual's personal history record;

4999

(3) Any information identifying, by name and address, the	5000
amount of a monthly allowance or benefit paid to the individual.	5001

(C) All medical reports and recommendations under sections	5002
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged,	5003
except that copies of such medical reports or recommendations	5004
shall be made available to the personal physician, attorney, or	5005
authorized agent of the individual concerned upon written release	5006
received from the individual or the individual's agent, or, when	5007
necessary for the proper administration of the fund, to the board	5008
assigned physician.	5009

(D) Any person who is a member or contributor of the system	5010
shall be furnished, on written request, with a statement of the	5011
amount to the credit of the person's account. The board need not	5012
answer more than one request of a person in any one year.	5013

(E) Notwithstanding the exceptions to public inspection in	5014
division (B) of this section, the board may furnish the following	5015
information:	5016

(1) If a member, former member, retirant, contributor, or	5017
former contributor is subject to an order issued under section	5018
2907.15 of the Revised Code or is convicted of or pleads guilty to	5019
a violation of section 2921.41 of the Revised Code, on written	5020
request of a prosecutor as defined in section 2935.01 of the	5021
Revised Code, the board shall furnish to the prosecutor the	5022
information requested from the individual's personal history	5023
record.	5024

(2) Pursuant to a court or administrative order issued under	5025
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the	5026
Revised Code, the board shall furnish to a court or child support	5027
enforcement agency the information required under that section.	5028

(3) At the written request of any person, the board shall	5029
provide to the person a list of the names and addresses of	5030
members, former members, retirants, contributors, former	5031
contributors, or beneficiaries. The costs of compiling, copying,	5032
and mailing the list shall be paid by such person.	5033

(4) Within fourteen days after receiving from the director of	5034
job and family services a list of the names and social security	5035
numbers of recipients of public assistance pursuant to section	5036
5101.181 of the Revised Code, the board shall inform the auditor	5037
of state of the name, current or most recent employer address, and	5038
social security number of each member whose name and social	5039
security number are the same as that of a person whose name or	5040
social security number was submitted by the director. The board	5041
and its employees shall, except for purposes of furnishing the	5042
auditor of state with information required by this section,	5043
preserve the confidentiality of recipients of public assistance in	5044
compliance with division (A) of section 5101.181 of the Revised	5045
Code.	5046

(5) The system shall comply with orders issued under section	5047
3105.87 of the Revised Code.	5048

On the written request of an alternate payee, as defined in	5049
section 3105.80 of the Revised Code, the system shall furnish to	5050
the alternate payee information on the amount and status of any	5051
amounts payable to the alternate payee under an order issued under	5052
section 3105.171 or 3105.65 of the Revised Code.	5053

(6) At the request of any person, the board shall make	5054
available to the person copies of all documents, including	5055
resumes, in the board's possession regarding filling a vacancy of	5056
a teacher member or retired teacher member of the board. The	5057
person who made the request shall pay the cost of compiling,	5058
copying, and mailing the documents. The information described in	5059
this division is a public record.	5060

(7) The board shall furnish those personal history records	5061
kept by the board to the secretary of state necessary for the	5062
purposes of certifying an election pursuant to section 111.30 of	5063
the Revised Code. The records provided pursuant to this division	5064
shall remain confidential while in the possession of the secretary	5065
of state.	5066

(F) A statement that contains information obtained from the	5067
system's records that is signed by an officer of the retirement	5068
system and to which the system's official seal is affixed, or	5069
copies of the system's records to which the signature and seal are	5070
attached, shall be received as true copies of the system's records	5071
in any court or before any officer of this state.	5072

Sec. 3307.99. (A) Whoever violates division (A) of section	5073
3307.073 of the Revised Code shall be fined not more than one	5074
hundred dollars for each day of the violation.	5075

(B) Whoever violates division (B) of section 3307.073 of the	5076
Revised Code shall be imprisoned for not more than six months or	5077
fined not more than five thousand dollars, or both.	5078

(C) Fines imposed by the Ohio elections commission under this	5079
section shall be paid into the Ohio elections commission fund	5080
created under section 3513.10 of the Revised Code.	5081

Sec. 3309.03.  A school employees retirement system is hereby	5082
established for the employees as defined in section 3309.01 of the	5083
Revised Code, which shall include the several funds created and	5084
placed under the management of the school employees retirement	5085
board for the payment of retirement allowances and other benefits	5086
provided in Chapter 3309. of the Revised Code. The board may sue	5087
and be sued, plead and be impleaded, contract and be contracted	5088
with, and do all things necessary to carry out Chapter 3309. of	5089
the Revised Code. All of its business shall be transacted, all of	5090
its funds invested, all warrants for money drawn and payments	5091
made, and all of its cash, securities, and other property shall be	5092
held in the name of the board, or in the name of its nominee,	5093
provided that nominees are authorized by retirement board	5094
resolution for such purposes. The board may take all appropriate	5095
action to avoid payment by the system or its members of federal or	5096
state income taxes on contributions to the system or amounts	5097
earned on those contributions.	5098

If the Ohio retirement study council establishes a uniform	5099
format for any report the board is required to submit to the	5100
council, the board shall submit the report in that format.	5101

Sec. 3309.041. The school employees retirement board shall do	5102
all of the following:	5103

(A) In consultation with the Ohio ethics commission, review	5104
any existing policy regarding the travel and payment of travel	5105
expenses of members and employees of the school employees	5106
retirement board and adopt rules in accordance with section	5107
3309.04 of the Revised Code establishing a new or revised policy	5108
regarding travel and payment of travel expenses;	5109

(B) If the board intends to award a bonus to any employee of	5110
the board, adopt rules in accordance with section 3309.04 of the	5111
Revised Code establishing a policy regarding employee bonuses;	5112

(C) Provide copies of the rules adopted under divisions (A)	5113
and (B) of this section to each member of the Ohio retirement	5114
study council;	5115

(D) Submit to the Ohio retirement study council a proposed	5116
operating budget, including an administrative budget for the	5117
board, for the next immediate fiscal year and adopt that budget	5118
not earlier than sixty days after it is submitted to the council;	5119

(E) Submit to the council a plan describing how the board	5120
will improve the dissemination of public information pertaining to	5121
the board.	5122

Sec. 3309.042. The school employees retirement board shall,	5123
in consultation with the Ohio ethics commission, develop an ethics	5124
policy. The board shall submit this policy to the Ohio retirement	5125
study council for approval.	5126

The council shall review the policy and, if the council	5127
determines, upon the advice of the Ohio ethics commission, that	5128
the policy is adequate, approve the policy. If the council	5129
determines that the policy is inadequate, it shall specify the	5130
revisions to be made and the board shall submit a revised policy.	5131
If the council approves the revised policy, the board shall adopt	5132
it. If not, the board shall make any further revisions required by	5133
the council and adopt the policy.	5134

The board periodically shall provide ethics training to	5135
members and employees of the board. The training shall include	5136
training regarding the requirements and prohibitions of Chapter	5137
102. of the Revised Code and sections 2921.42 and 2921.43 of the	5138
Revised Code and any other training the board considers	5139
appropriate.	5140

The board shall establish a procedure to ensure that each	5141
employee of the board is informed of the procedure for filing a	5142
complaint alleging violation of Chapter 102. of the Revised Code	5143
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	5144
ethics commission or the appropriate prosecuting attorney.	5145

Sec. 3309.043.  (A) The school employees retirement board	5146
shall designate a person who is a licensed state retirement system	5147
investment officer to be the chief investment officer for the	5148
school employees retirement system. The board shall notify the	5149
division of securities of the department of commerce in writing of	5150
its designation and of any change in its designation within ten	5151
calendar days of the designation or change.	5152

(B) The chief investment officer shall reasonably supervise	5153
the licensed state retirement system investment officers and other	5154
persons employed by the school employees retirement system with a	5155
view toward preventing violations of Chapter 1707. of the Revised	5156
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and	5157
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.	5158
and following, and the "Securities Exchange Act of 1934," 48 Stat.	5159
881, 15 U.S.C. 78a, and following, and the rules and regulations	5160
promulgated under those statutes. This duty of reasonable	5161
supervision shall include the adoption, implementation, and	5162
enforcement of written policies and procedures reasonably designed	5163
to prevent persons employed by the school employees retirement	5164
system from misusing material, nonpublic information in violation	5165
of those laws, rules, and regulations.	5166

For purposes of this division, no chief investment officer	5167
shall be considered to have failed to satisfy the officer's duty	5168
of reasonable supervision if the officer has done all of the	5169
following:	5170

(1) Adopted and implemented written procedures, and a system	5171
for applying the procedures, that would reasonably be expected to	5172
prevent and detect, insofar as practicable, any violation by its	5173
licensed investment officers and other persons employed by the	5174
school employees retirement system;	5175

(2) Reasonably discharged the duties and obligations	5176
incumbent on the chief investment officer by reason of the	5177
established procedures and the system for applying the procedures	5178
when the officer had no reasonable cause to believe that there was	5179
a failure to comply with the procedures and systems;	5180

(3) Reviewed, at least annually, the adequacy of the policies	5181
and procedures established pursuant to this section and the	5182
effectiveness of their implementation.	5183

(C) The chief investment officer shall ensure that securities	5184
transactions are executed in such a manner that the school	5185
employees retirement system's total costs or proceeds in each	5186
transaction are the most favorable under the circumstances.	5187

For purposes of this division, no chief investment officer	5188
shall be considered to have failed to satisfy the officer's duty	5189
of best execution if the officer has done both of the following:	5190

(1) Adopted and implemented a written policy that outlines	5191
the criteria used to select broker-dealers that execute securities	5192
transactions on behalf of the school employees retirement system,	5193
which criteria shall include all of the following:	5194

(a) Commissions charged by the broker-dealer, both in the	5195
aggregate and on a per share basis;	5196

(b) The execution speed and trade settlement capabilities of	5197
the broker-dealer;	5198

(c) The responsiveness, reliability, and integrity of the	5199
broker-dealer;	5200

(d) The nature and value of research provided by the	5201
broker-dealer;	5202

(e) Any special capabilities of the broker-dealer.

5203

(2) Reviewed, at least annually, the performance of	5204
broker-dealers that execute securities transactions on behalf of	5205
the school employees retirement system.	5206

Sec. 3309.05.  The school employees retirement board shall	5207
consist of the following seven members:	5208

(A) The auditor of state;

5209

(B) The attorney generaltreasurer of state;

5210

(C) Four members, known as employee members, who shall be	5211
members of the school employees retirement system, and who shall	5212
be elected by ballot by the members of the system;	5213

(D) One member, known as the retirant member, who shall be a	5214
former member of the retirement system who is a resident of this	5215
state and currently receiving an age and service retirement	5216
benefit, a disability benefit, or benefits under a plan	5217
established under section 3309.81 of the Revised Code. The	5218
retirant member shall be elected by ballot by former members of	5219
the system who are currently receiving an age and service	5220
retirement benefit, a disability benefit, or benefits under a plan	5221
established under section 3309.81 of the Revised Code;	5222

(E) One member, known as the school board member, appointed	5223
by the governor, who shall be a member of a city, local, exempted	5224
village, or joint vocational school board district board of	5225
education or a member of an educational service center governing	5226
board, but need not be a member of the retirement system;	5227

(F)(1) One member, known as the investment expert member, who	5228
shall be appointed by the governor and who shall have the	5229
following qualifications:	5230

(a) The member is a resident of this state;

5231

(b) Within the three years immediately preceding the	5232
appointment, the member has not been employed by the public	5233
employees state retirement system, police and fire pension fund,	5234
state teachers retirement system, school employees retirement	5235
system, or state highway patrol retirement system or by any	5236
person, partnership, or corporation that has provided to one of	5237
those retirement systems services of a financial or investment	5238
nature, including the management, analysis, supervision, or	5239
investment of assets;	5240

(c) The member has direct experience in the management,	5241
analysis, supervision, or investment of assets.	5242

(2) The initial investment expert member shall be appointed	5243
and take office not less than ninety days after the effective date	5244
of this amendment. Any investment expert member appointed to fill	5245
a vacancy occurring prior to the expiration of the term for which	5246
the member's predecessor was appointed holds office until the end	5247
of such term. The member continues in office subsequent to the	5248
expiration date of the member's term until the member's successor	5249
takes office, or until a period of sixty days has elapsed,	5250
whichever occurs first.	5251

Sec. 3309.051. Each newly elected member of the school	5252
employees retirement board and each individual appointed to fill a	5253
vacancy on the board shall, not later than ninety days after	5254
commencing service as a board member, complete the orientation	5255
program component of the retirement board member education program	5256
established under section 171.50 of the Revised Code.	5257

Each member of the board who has served a year or longer as a	5258
board member shall, not less than twice each year, attend one or	5259
more programs that are part of the continuing education component	5260
of the retirement board member education program established under	5261
section 171.50 of the Revised Code.	5262

Sec. 3309.052. A person who served as an elected or appointed	5263
member of the school employees retirement board for one or more	5264
entire fiscal years in fiscal years 2000, 2001, or 2002 is	5265
ineligible for re-election or reappointment to the board if the	5266
person has accepted reimbursements for travel and travel-related	5267
expenses from the board that have an annual average of more than	5268
ten thousand dollars for those fiscal years.	5269

Sec. 3309.06. (A) Elections for employee and retirant members	5270
of the school employees retirement board shall be held on the	5271
first Monday of March. Terms of office of the employee members and	5272
the retirant member of the board shall be for four years each,	5273
commencing on the first day of July following the election and	5274
ending on the thirtieth day of June. The initial terms of the	5275
retirant member and the new employee member shall commence on July	5276
1, 1984, and end on June 30, 1988. Vancancies occurring in	5277

(B) If a vacancy occurs during the termsterm of employee	5278
members or the retirantan elected member of the board shall be	5279
filled by, the remaining members of the board for the unexpired	5280
termsshall elect a successor member. EmployeeOn certification of	5281
the election results under section 111.30 of the Revised Code, the	5282
successor member shall hold office until the next board election	5283
that occurs not less than ninety days after the successor member's	5284
election. The successor member shall qualify for board membership	5285
under the same division of section 3309.05 of the Revised Code as	5286
the member's predecessor in office. Elections under this division	5287
shall be conducted under the supervision of the secretary of state	5288
pursuant to section 111.30 of the Revised Code.	5289

(C) Employee members or the retirant member of the board who	5290
fail to attend the meetings of the board for four months or	5291
longer, without being excused, shall be considered as having	5292
resigned and successors shall be elected for their unexpired terms	5293
pursuant to division (B) of this section. If as a result of	5294
changed circumstances the retirant member would no longer qualify	5295
for membership on the board as the retirant member, the office	5296
shall be considered vacant, and a successor retirant member shall	5297
be elected pursuant to division (B) of this section.	5298

Sec. 3309.061. An employee member or retirant member of the	5299
school employees retirement board who is charged with committing a	5300
felony, a theft offense as defined in section 2913.01 of the	5301
Revised Code, or a violation of section 102.02, 102.03, 102.04,	5302
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or	5303
2921.44 of the Revised Code shall be suspended from participation	5304
on the board for the period during which the charges are pending.	5305
If the charges are dismissed, the member is found not guilty, or	5306
the charges are otherwise resolved in a manner not resulting in	5307
the member being convicted of or pleading guilty to an offense of	5308
that nature, the suspension shall end, and the member may	5309
participate on the board. If the member pleads guilty to or is	5310
convicted of the offense, the position of the member on the board	5311
shall be deemed vacant. A person who has pleaded guilty to or been	5312
convicted of an offense of that nature is ineligible for election	5313
to the office of employee or retirant member of the school	5314
employees retirement board.	5315

Sec. 3309.07.  (A) All elections for employee or retirant	5316
members of the school employees retirement board shall be held	5317
under the direction of the board in accordance with rules adopted	5318
under section 111.30 of the Revised Code.	5319

(B) Any member of the school employees retirement system,	5320
other than a disability benefit recipient, shall be eligible to be	5321
nominated for election as an employee member of the board who has	5322
been nominated by a petition that is signed by at least five	5323
hundred members, provided that there shall beand certified under	5324
section 111.30 of the Revised Code. The petition shall contain the	5325
signatures of not less than twenty signersmembers each from at	5326
least ten counties wherein such members are employed. The petition	5327
shall specify the term of office and position. The name of any	5328
member so nominated shall be placed upon the ballot by the board	5329
as a regular candidate. Other names of eligible candidates may at	5330
any election be substituted for the regular candidates by writing	5331
such names upon the ballot. The candidate receiving the highest	5332
number of votes for any term as member of the board shall be	5333
elected for such term on certification of the election results	5334
under section 111.30 of the Revised Code. In any year in which two	5335
employee member positions must be filled, the candidates who	5336
receive the highest and second highest number of votes shall be	5337
elected to the offices on certification of the election results	5338
under section 111.30 of the Revised Code.	5339

(C) Any former member of the school employees retirement	5340
system described in division (D) of section 3309.05 of the Revised	5341
Code is eligible for election as the retirant member of the board	5342
to represent former members currently receiving an age and service	5343
retirement benefit, a disability benefit, or benefits under a plan	5344
established under section 3309.81 of the Revised Code, provided	5345
that such person has been nominated by a petition that is	5346
certified under section 111.30 of the Revised Code and signed by	5347
at least one hundred fifty former members of the system who are	5348
currently receiving an age and service retirement benefit, a	5349
disability benefit, or benefits under a plan established under	5350
section 3309.81 of the Revised Code. The petition shall contain	5351
the signatures of at least ten such recipients from each of at	5352
least five counties wherein recipients of benefits from this	5353
system reside. The petition shall specify the term of office and	5354
position. The name of any person so nominated shall be placed upon	5355
the ballot by the board as a regular candidate. Other names of	5356
eligible candidates may at any election be substituted for the	5357
regular candidates by writing such names upon the ballot. The	5358
candidate receiving the highest number of votes for any term as	5359
member of the board shall be elected for such term on	5360
certification of the election results under section 111.30 of the	5361
Revised Code.	5362

No employee member of the board who retires while a member of	5363
the board shall be eligible to become a retirant member of the	5364
board for three years after the date of the member's retirement.	5365

Sec. 3309.061.        Sec. 3309.071.  Notwithstanding sections 3309.05,	5366
3309.06, and 3309.07 of the Revised Code, the school employees	5367
retirement board is not required to hold an election for a	5368
position on the board as an employee member or retirant member if	5369
only one candidate has been nominated for the position by petition	5370
in accordance with section 3309.07 of the Revised Code. The	5371
candidate shall take office as if elected. The term of office	5372
shall be four years beginning on the first day of July following	5373
the date the candidate was nominated.	5374

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

5375

(1) "Campaign committee" means a candidate or a combination	5376
of two or more persons authorized by a candidate to receive	5377
contributions and in-kind contributions and make expenditures on	5378
behalf of the candidate.	5379

(2) "Candidate" means an individual who has been nominated	5380
pursuant to section 3309.07 of the Revised Code for election to	5381
the school employees retirement board or who is seeking to be	5382
elected to fill a vacancy on the board pursuant to division (C) of	5383
section 3309.06 of the Revised Code.	5384

(3) "Contribution" means a loan, gift, deposit, forgiveness	5385
of indebtedness, donation, advance, payment, transfer of funds or	5386
transfer of anything of value including a transfer of funds from	5387
an inter vivos or testamentary trust or decedent's estate, and the	5388
payment by any person other than the person to whom the services	5389
are rendered for the personal services of another person, which	5390
contribution is made, received, or used for the purpose of	5391
influencing the results of an election to the school employees	5392
retirement board under section 3309.07 of the Revised Code or the	5393
results of an election to fill a vacancy on the board pursuant to	5394
division (C) of section 3309.06 of the Revised Code.	5395
"Contribution" does not include:	5396

(a) Services provided without compensation by individuals	5397
volunteering a portion or all of their time on behalf of a person;	5398

(b) Ordinary home hospitality;

5399

(c) The personal expenses of a volunteer paid for by that	5400
volunteer campaign worker.	5401

(4) "Election day" means the following, as appropriate to the	5402
situation:	5403

(a) The first Monday in March of a year for which section	5404
3309.06 of the Revised Code specifies that an election for a	5405
member of the school employees retirement board be held;	5406

(b) If, pursuant to section 3309.071 of the Revised Code, no	5407
election is held, the first Monday in March of a year that the	5408
election would have been held if not for section 3309.071 of the	5409
Revised Code.	5410

(5) "Expenditure" means the disbursement or use of a	5411
contribution for the purpose of influencing the results of an	5412
election to the school employees retirement board under section	5413
3309.07 of the Revised Code or the results of an election to fill	5414
a vacancy on the board pursuant to division (C) of section 3309.06	5415
of the Revised Code.	5416

(6) "Independent expenditure" means an expenditure by an	5417
individual, partnership, or other entity advocating the election	5418
or defeat of an identified candidate or candidates, that is not	5419
made with the consent of, in coordination, cooperation, or	5420
consultation with, or at the request or suggestion of any	5421
candidate or candidates or of the campaign committee or agent of	5422
the candidate or candidates. An independent expenditure shall not	5423
be construed as being a contribution. As used in division (A)(6)	5424
of this section:	5425

(a) "Advocating" means any communication containing a message	5426
advocating election or defeat.	5427

(b) "Identified candidate" means that the name of the	5428
candidate appears, a photograph or drawing of the candidate	5429
appears, or the identity of the candidate is otherwise apparent by	5430
unambiguous reference.	5431

(c) "Made in coordination, cooperation, or consultation with,	5432
or at the request or suggestion of, any candidate or the campaign	5433
committee or agent of the candidate" means made pursuant to any	5434
arrangement, coordination, or direction by the candidate, the	5435
candidate's campaign committee, or the candidate's agent prior to	5436
the publication, distribution, display, or broadcast of the	5437
communication. An expenditure is presumed to be so made when it is	5438
any of the following:	5439

(i) Based on information about the candidate's plans,	5440
projects, or needs provided to the person making the expenditure	5441
by the candidate, or by the candidate's campaign committee or	5442
agent, with a view toward having an expenditure made;	5443

(ii) Made by or through any person who is, or has been,	5444
authorized to raise or expend funds, who is, or has been, an	5445
officer of the candidate's campaign committee, or who is, or has	5446
been, receiving any form of compensation or reimbursement from the	5447
candidate or the candidate's campaign committee or agent;	5448

(iii) Made by a political party in support of a candidate,	5449
unless the expenditure is made by a political party to conduct	5450
voter registration or voter education efforts.	5451

(d) "Agent" means any person who has actual oral or written	5452
authority, either express or implied, to make or to authorize the	5453
making of expenditures on behalf of a candidate, or means any	5454
person who has been placed in a position with the candidate's	5455
campaign committee or organization such that it would reasonably	5456
appear that in the ordinary course of campaign-related activities	5457
the person may authorize expenditures.	5458

(7) "In-kind contribution" means anything of value other than	5459
money that is used to influence the results of an election to the	5460
school employees retirement board under section 3309.07 of the	5461
Revised Code or the results of an election to fill a vacancy on	5462
the board pursuant to division (C) of section 3309.06 of the	5463
Revised Code or is transferred to or used in support of or in	5464
opposition to a candidate and that is made with the consent of, in	5465
coordination, cooperation, or consultation with, or at the request	5466
or suggestion of the benefited candidate. The financing of the	5467
dissemination, distribution, or republication, in whole or part,	5468
of any broadcast or of any written, graphic, or other form of	5469
campaign materials prepared by the candidate, the candidate's	5470
campaign committee, or their authorized agents is an in-kind	5471
contribution to the candidate and an expenditure by the candidate.	5472

(8) "Personal expenses" includes ordinary expenses for	5473
accommodations, clothing, food, personal motor vehicle or	5474
airplane, and home telephone.	5475

(B) Except as otherwise provided in division (D) of this	5476
section, each candidate who, or whose campaign committee, receives	5477
a contribution or in-kind contribution or makes an expenditure in	5478
connection with the candidate's efforts to be elected to the	5479
school employees retirement board shall file with the secretary of	5480
state two complete, accurate, and itemized statements setting	5481
forth in detail the contributions, in-kind contributions, and	5482
expenditures. The statements shall be filed regardless of whether,	5483
pursuant to section 3309.071 of the Revised Code, no election is	5484
held. The statements shall be made on a form prescribed under	5485
section 111.30 of the Revised Code. Every expenditure shall be	5486
vouched for by a receipted bill, stating the purpose of the	5487
expenditures, that shall be filed with the statement; a canceled	5488
check with a notation of the purpose of the expenditure is a	5489
receipted bill for purposes of this division.	5490

The first statement shall be filed not later than four p.m.	5491
on the day that is twelve days before election day. The second	5492
statement shall be filed not sooner than the day that is eight	5493
days after election day and not later than thirty-eight days after	5494
election day. The first statement shall reflect contributions and	5495
in-kind contributions received and expenditures made to the close	5496
of business on the twentieth day before election day. The second	5497
statement shall reflect contributions and in-kind contributions	5498
received and expenditures made during the period beginning on the	5499
nineteenth day before election day and ending on the close of	5500
business on the seventh day after election day.	5501

(C) Each individual, partnership, or other entity who makes	5502
an independent expenditure in connection with the candidate's	5503
efforts to be elected to the school employees retirement board	5504
shall file with the secretary of state two complete, accurate, and	5505
itemized statements setting forth in detail the independent	5506
expenditures. The statements shall be filed regardless of whether,	5507
pursuant to section 3309.071 of the Revised Code, no election is	5508
held. The statements shall be made on a form prescribed under	5509
section 111.30 of the Revised Code.	5510

The first statement shall be filed not later than four p.m.	5511
on the day that is twelve days before election day. The second	5512
statement shall be filed not sooner than the day that is eight	5513
days after election day and not later than thirty-eight days after	5514
election day. The first statement shall reflect independent	5515
expenditures made to the close of business on the twentieth day	5516
before election day. The second statement shall reflect	5517
independent expenditures made during the period beginning on the	5518
nineteenth day before election day and ending on the close of	5519
business on the seventh day after election day.	5520

(D) Each candidate who, or whose campaign committee, receives	5521
a contribution or in-kind contribution or makes an expenditure in	5522
connection with the candidate's efforts to be elected to fill a	5523
vacancy in the public employees retirement board pursuant to	5524
division (C) of section 3309.06 of the Revised Code shall file	5525
with the secretary of state a complete, accurate, and itemized	5526
statement setting forth in detail the contributions, in-kind	5527
contributions, and expenditures. The statement shall be made on a	5528
form prescribed under section 111.30 of the Revised Code. Every	5529
expenditure shall be vouched for by a receipted bill, stating the	5530
purpose of the expenditures, that shall be filed with the	5531
statement; a canceled check with a notation of the purpose of the	5532
expenditure is a receipted bill for purposes of this division.	5533

The statement shall be filed within thirty-eight days after	5534
the day the candidate takes office. The statement shall reflect	5535
contributions and in-kind contributions received and expenditures	5536
made to the close of business on the seventh day after the day the	5537
candidate takes office.	5538

Sec. 3309.073. (A) No person shall knowingly fail to file a	5539
complete and accurate campaign finance statement or independent	5540
expenditure statement in accordance with section 3309.072 of the	5541
Revised Code.	5542

(B) No person, during the course of a person seeking	5543
nomination for, and during any campaign for, election to the	5544
school employees retirement board, shall knowingly and with intent	5545
to affect the nomination or the outcome of the campaign do any of	5546
the following by means of campaign materials, an advertisement on	5547
radio or television or in a newspaper or periodical, a public	5548
speech, press release, or otherwise:	5549

(1) With regard to a candidate, identify the candidate in a	5550
manner that implies that the candidate is a member of the board or	5551
use the term "re-elect" when the candidate is not currently a	5552
member of the board;	5553

(2) Make a false statement concerning the formal schooling or	5554
training completed or attempted by a candidate; a degree, diploma,	5555
certificate, scholarship, grant, award, prize, or honor received,	5556
earned, or held by a candidate; or the period of time during which	5557
a candidate attended any school, college, community technical	5558
school, or institution;	5559

(3) Make a false statement concerning the professional,	5560
occupational, or vocational licenses held by a candidate, or	5561
concerning any position the candidate held for which the candidate	5562
received a salary or wages;	5563

(4) Make a false statement that a candidate or public	5564
official has been indicted or convicted of a theft offense,	5565
extortion, or other crime involving financial corruption or moral	5566
turpitude;	5567

(5) Make a statement that a candidate has been indicted for	5568
any crime or has been the subject of a finding by the Ohio	5569
elections commission without disclosing the outcome of any legal	5570
proceedings resulting from the indictment or finding;	5571

(6) Make a false statement that a candidate or official has a	5572
record of treatment or confinement for mental disorder;	5573

(7) Make a false statement that a candidate or official has	5574
been subjected to military discipline for criminal misconduct or	5575
dishonorably discharged from the armed services;	5576

(8) Falsely identify the source of a statement, issue	5577
statements under the name of another person without authorization,	5578
or falsely state the endorsement of or opposition to a candidate	5579
by a person or publication;	5580

(9) Make a false statement concerning the voting record of a	5581
candidate or public official;	5582

(10) Post, publish, circulate, distribute, or otherwise	5583
disseminate a false statement concerning a candidate, either	5584
knowing the same to be false or with reckless disregard of whether	5585
it was false or not, if the statement is designed to promote the	5586
election, nomination, or defeat of the candidate.	5587

Sec. 3309.074. The secretary of state, or any person acting	5588
on personal knowledge and subject to the penalties of perjury, may	5589
file a complaint with the Ohio elections commission alleging a	5590
violation of section 3309.073 of the Revised Code. The complaint	5591
shall be made on a form prescribed and provided by the commission.	5592

On receipt of a complaint under this section, the commission	5593
shall hold a hearing open to the public to determine whether the	5594
violation alleged in the complaint has occurred. The commission	5595
may administer oaths and issue subpoenas to any person in the	5596
state compelling the attendance of witnesses and the production of	5597
relevant papers, books, accounts, and reports. On the refusal of	5598
any person to obey a subpoena or to be sworn or to answer as a	5599
witness, the commission may apply to the court of common pleas of	5600
Franklin county under section 2705.03 of the Revised Code. The	5601
court shall hold contempt proceedings in accordance with Chapter	5602
2705. of the Revised Code.	5603

The commission shall provide the person accused of the	5604
violation at least seven days prior notice of the time, date, and	5605
place of the hearing. The accused may be represented by an	5606
attorney and shall have an opportunity to present evidence, call	5607
witnesses, and cross-examine witnesses.	5608

At the hearing, the commission shall determine whether the	5609
violation alleged in the complaint has occurred. If the commission	5610
determines that a violation of division (A) of section 3309.073 of	5611
the Revised Code has occurred, the commission shall either impose	5612
a fine under section 3309.99 of the Revised Code or enter a	5613
finding that good cause has been shown not to impose the fine. If	5614
the commission determines that a violation of division (B) of	5615
section 3309.073 of the Revised Code has occurred, the commission	5616
shall impose the fine described in section 3309.99 of the Revised	5617
Code, refer the matter to the appropriate prosecutor, or enter a	5618
finding that good cause has been shown to not impose a fine or	5619
refer the matter to the appropriate prosecutor.	5620

Sec. 3309.09. FourA majority of the members of the school	5621
employees retirement board constitutes a quorum for the	5622
transaction of any business. Any action taken by the board shall	5623
be approved by four or mor ea majority of itsthe members of the	5624
board. All meetings of the board shall be open to the public	5625
except executive sessions as set forth in division (G) of section	5626
121.22 of the Revised Code, and any portions of any sessions	5627
discussing medical records or the degree of disability of a member	5628
excluded from public inspection by section 3309.22 of the Revised	5629
Code.	5630

Sec. 3309.14.  The school employees retirement board shall	5631
secure the service of such technical and administrative employees	5632
as are necessary for the transaction of the business of the school	5633
employees retirement system. The	5634

Effective ninety days after the effective date of this	5635
amendment, the board may not employ a state retirement system	5636
investment officer, as defined in section 1707.01 of the Revised	5637
Code, who does not hold a valid state retirement system investment	5638
officer license issued by the division of securities in the	5639
department of commerce.	5640

The compensation of all persons engaged by the board and all	5641
other expenses of the board necessary for the proper operation of	5642
the system shall be paid at such rates and in such amounts as the	5643
board approves. Every expense voucher of an employee, officer, or	5644
board member of the school employees retirement system shall	5645
itemize all purchases and expenditures.	5646

The board shall receive and act upon all applications for	5647
retirement under Chapter 3309. of the Revised Code, and shall	5648
provide for the payment of all retirement allowances and other	5649
benefits and shall make other expenditures required or authorized	5650
by this chapter.	5651

Sec. 3309.22.  (A)(1) As used in this division, "personal	5652
history record" means information maintained by the board on an	5653
individual who is a member, former member, contributor, former	5654
contributor, retirant, or beneficiary that includes the address,	5655
telephone number, social security number, record of contributions,	5656
correspondence with the system, and other information the board	5657
determines to be confidential.	5658

(2) The records of the board shall be open to public	5659
inspection, except for the following, which shall be excluded,	5660
except with the written authorization of the individual concerned:	5661

(a) The individual's statement of previous service and other	5662
information as provided for in section 3309.28 of the Revised	5663
Code;	5664

(b) Any information identifying by name and address the	5665
amount of a monthly allowance or benefit paid to the individual;	5666

(c) The individual's personal history record.

5667

(B) All medical reports and recommendations required by the	5668
system are privileged except that copies of such medical reports	5669
or recommendations shall be made available to the personal	5670
physician, attorney, or authorized agent of the individual	5671
concerned upon written release received from the individual or the	5672
individual's agent, or when necessary for the proper	5673
administration of the fund, to the board assigned physician.	5674

(C) Any person who is a contributor of the system shall be	5675
furnished, on written request, with a statement of the amount to	5676
the credit of the person's account. The board need not answer more	5677
than one such request of a person in any one year.	5678

(D) Notwithstanding the exceptions to public inspection in	5679
division (A)(2) of this section, the board may furnish the	5680
following information:	5681

(1) If a member, former member, contributor, former	5682
contributor, or retirant is subject to an order issued under	5683
section 2907.15 of the Revised Code or is convicted of or pleads	5684
guilty to a violation of section 2921.41 of the Revised Code, on	5685
written request of a prosecutor as defined in section 2935.01 of	5686
the Revised Code, the board shall furnish to the prosecutor the	5687
information requested from the individual's personal history	5688
record.	5689

(2) Pursuant to a court or administrative order issued under	5690
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the	5691
Revised Code, the board shall furnish to a court or child support	5692
enforcement agency the information required under that section.	5693

(3) At the written request of any person, the board shall	5694
provide to the person a list of the names and addresses of	5695
members, former members, retirants, contributors, former	5696
contributors, or beneficiaries. The costs of compiling, copying,	5697
and mailing the list shall be paid by such person.	5698

(4) Within fourteen days after receiving from the director of	5699
job and family services a list of the names and social security	5700
numbers of recipients of public assistance pursuant to section	5701
5101.181 of the Revised Code, the board shall inform the auditor	5702
of state of the name, current or most recent employer address, and	5703
social security number of each contributor whose name and social	5704
security number are the same as that of a person whose name or	5705
social security number was submitted by the director. The board	5706
and its employees shall, except for purposes of furnishing the	5707
auditor of state with information required by this section,	5708
preserve the confidentiality of recipients of public assistance in	5709
compliance with division (A) of section 5101.181 of the Revised	5710
Code.	5711

(5) The system shall comply with orders issued under section	5712
3105.87 of the Revised Code.	5713

On the written request of an alternate payee, as defined in	5714
section 3105.80 of the Revised Code, the system shall furnish to	5715
the alternate payee information on the amount and status of any	5716
amounts payable to the alternate payee under an order issued under	5717
section 3105.171 or 3105.65 of the Revised Code.	5718

(6) At the request of any person, the board shall make	5719
available to the person copies of all documents, including	5720
resumes, in the board's possession regarding filling a vacancy of	5721
an employee member or retirant member of the board. The person who	5722
made the request shall pay the cost of compiling, copying, and	5723
mailing the documents. The information described in this division	5724
is a public record.	5725

(7) The board shall furnish those personal history records	5726
kept by the board to the secretary of state necessary for the	5727
purposes of certifying an election pursuant to section 111.30 of	5728
the Revised Code. The records provided pursuant to this division	5729
shall remain confidential while in the possession of the secretary	5730
of state.	5731

(E) A statement that contains information obtained from the	5732
system's records that is signed by an officer of the retirement	5733
system and to which the system's official seal is affixed, or	5734
copies of the system's records to which the signature and seal are	5735
attached, shall be received as true copies of the system's records	5736
in any court or before any officer of this state.	5737

Sec. 3309.99. (A) Whoever violates division (A) of section	5738
3309.073 of the Revised Code shall be fined not more than one	5739
hundred dollars for each day of the violation.	5740

(B) Whoever violates division (B) of section 3309.073 of the	5741
Revised Code shall be imprisoned for not more than six months or	5742
fined not more than five thousand dollars, or both.	5743

(C) Fines imposed by the Ohio elections commission under this	5744
section shall be paid into the Ohio elections commission fund	5745
created under section 3513.10 of the Revised Code.	5746

Sec. 5505.04.  (A)(1) The general administration and	5747
management of the state highway patrol retirement system and the	5748
making effective of this chapter are hereby vested in the state	5749
highway patrol retirement board. The board may sue and be sued,	5750
plead and be impleaded, contract and be contracted with, and do	5751
all things necessary to carry out this chapter.	5752

The board shall consist of the auditor of state, the director	5753
of public safety, the treasurer of state, the superintendent of	5754
the state highway patrol, a retirant-memberretirant member who is	5755
a resident of this state, and four employee-membersemployee	5756
members, and two investment expert members, who shall be appointed	5757
by the governor and who shall have the following qualifications:	5758

(a) Each investment expert member shall be a resident of this	5759
state.	5760

(b) Within the three years immediately preceding the	5761
appointment, each investment expert member shall not have been	5762
employed by the public employees retirement system, police and	5763
fire pension fund, state teachers retirement system, school	5764
employees retirement system, or state highway patrol retirement	5765
system or by any person, partnership, or corporation that has	5766
provided to one of those retirement systems services of a	5767
financial or investment nature, including the management,	5768
analysis, supervision, or investment of assets.	5769

(c) Each investment expert member shall have direct	5770
experience in the management, analysis, supervision, or investment	5771
of assets.	5772

(2) The board shall annually elect a chairperson and	5773
vice-chairperson from among its members. The vice-chairperson	5774
shall act as chairperson in the absence of the chairperson. A	5775
majority of the members of the board shall constitute a quorum and	5776
any action taken shall be approved by four or morea majority of	5777
the members of the board. The board shall meet not less than once	5778
each year, upon sufficient notice to the members. All meetings of	5779
the board shall be open to the public except executive sessions as	5780
set forth in division (G) of section 121.22 of the Revised Code,	5781
and any portions of any sessions discussing medical records or the	5782
degree of disability of a member excluded from public inspection	5783
by this section.	5784

(3) The initial investment expert member shall be appointed	5785
and take office not less than ninety days after the effective date	5786
of this amendment. Any investment expert member appointed to fill	5787
a vacancy occurring prior to the expiration of the term for which	5788
the member's predecessor was appointed holds office until the end	5789
of such term. The member continues in office subsequent to the	5790
expiration date of the member's term until the member's successor	5791
takes office, or until a period of sixty days has elapsed,	5792
whichever occurs first.	5793

(B) The attorney general shall prescribe procedures for the	5794
adoption of rules authorized under this chapter, consistent with	5795
the provision of section 111.15 of the Revised Code under which	5796
all rules shall be filed in order to be effective. Such procedures	5797
shall establish methods by which notice of proposed rules are	5798
given to interested parties and rules adopted by the board	5799
published and otherwise made available. When it files a rule with	5800
the joint committee on agency rule review pursuant to section	5801
111.15 of the Revised Code, the board shall submit to the Ohio	5802
retirement study council a copy of the full text of the rule, and	5803
if applicable, a copy of the rule summary and fiscal analysis	5804
required by division (B) of section 127.18 of the Revised Code.	5805

(C)(1) Except as provided in division (C)(4) of this section,	5806
the retirant-member of the board shall be elected for a four-year	5807
term by a general election of service and disability retirants	5808
conducted in a manner approved by the board. The term of the	5809
initial retirant-member shall commence in August 1990. A person	5810
who at the time of retirement is an employee-member of the board	5811
is not eligible to become a retirant-member until three years	5812
after such person's retirement date.	5813

(2) Except as provided in division (C)(4) of this section,	5814
employee-members of the board shall be elected for terms of four	5815
years by a general election of contributing members conducted in a	5816
manner approved by the board. The term of office of each	5817
employee-member shall commence in August of the year in which such	5818
member is elected.	5819

(3) Except as provided in division (C)(4) of this section,	5820
any vacancy occurring in the term of the retirant-member or any	5821
employee-member of the board shall be filled by an election	5822
conducted in the same manner as other retirant-member and	5823
employee-member elections. The retirant-member or employee-member	5824
elected shall fill the unexpired term.	5825

(4) The state highway patrol retirement board is not required	5826
to hold an election for a position on the board as a	5827
retirant-member, employee-member, or vacancy for a retirant-member	5828
or employee-member if only one candidate has been nominated for	5829
the position or vacancy in the manner approved by the board. The	5830
candidate shall take office as if elected. In the case of a	5831
retirant-member or employee-member, the term of office shall be	5832
four years beginning in August of the year the candidate was	5833
nominated. In the case of a vacancy, the candidate shall fill the	5834
unexpired term.	5835

(D)(1) As used in this division, "personal history record"	5836
means information maintained by the board on an individual who is	5837
a member, former member, retirant, or beneficiary that includes	5838
the address, telephone number, social security number, record of	5839
contributions, correspondence with the system, and other	5840
information the board determines to be confidential.	5841

(2) The records of the board shall be open to public	5842
inspection, except for the following which shall be excluded: the	5843
member's, former member's, retirant's, or beneficiary's personal	5844
history record and the amount of a monthly allowance or benefit	5845
paid to a retirant, beneficiary, or survivor, except with the	5846
written authorization of the individual concerned. All medical	5847
reports and recommendations are privileged except that copies of	5848
such medical reports or recommendations shall be made available to	5849
the individual's personal physician, attorney, or authorized agent	5850
upon written release received from such individual or such	5851
individual's agent, or when necessary for the proper	5852
administration of the fund to the board-assigned physician.	5853

(E)(D) Notwithstanding the exceptions to public inspection in	5854
division (D)(C)(2) of this section, the board may furnish the	5855
following information:	5856

(1) If a member, former member, or retirant is subject to an	5857
order issued under section 2907.15 of the Revised Code or is	5858
convicted of or pleads guilty to a violation of section 2921.41 of	5859
the Revised Code, on written request of a prosecutor as defined in	5860
section 2935.01 of the Revised Code, the board shall furnish to	5861
the prosecutor the information requested from the individual's	5862
personal history record.	5863

(2) Pursuant to a court order issued under Chapters 3119.,	5864
3121., and 3123. of the Revised Code, the board shall furnish to a	5865
court or child support enforcement agency the information required	5866
under those chapters.	5867

(3) At the written request of any nonprofit organization or	5868
association providing services to retirement system members,	5869
retirants, or beneficiaries, the board shall provide to the	5870
organization or association a list of the names and addresses of	5871
members, former members, retirants, or beneficiaries if the	5872
organization or association agrees to use such information solely	5873
in accordance with its stated purpose of providing services to	5874
such individuals and not for the benefit of other persons,	5875
organizations, or associations. The costs of compiling, copying,	5876
and mailing the list shall be paid by such entity.	5877

(4) Within fourteen days after receiving from the director of	5878
job and family services a list of the names and social security	5879
numbers of recipients of public assistance pursuant to section	5880
5101.181 of the Revised Code, the board shall inform the auditor	5881
of state of the name, current or most recent employer address, and	5882
social security number of each member whose name and social	5883
security number are the same as those of a person whose name or	5884
social security number was submitted by the director. The board	5885
and its employees, except for purposes of furnishing the auditor	5886
of state with information required by this section, shall preserve	5887
the confidentiality of recipients of public assistance in	5888
compliance with division (A) of section 5101.181 of the Revised	5889
Code.	5890

(5) The system shall comply with orders issued under section	5891
3105.87 of the Revised Code.	5892

On the written request of an alternate payee, as defined in	5893
section 3105.80 of the Revised Code, the system shall furnish to	5894
the alternate payee information on the amount and status of any	5895
amounts payable to the alternate payee under an order issued under	5896
section 3105.171 or 3105.65 of the Revised Code.	5897

(6) At the request of any person, the board shall make	5898
available to the person copies of all documents, including	5899
resumes, in the board's possession regarding filling a vacancy of	5900
an employee member or retirant member of the board. The person who	5901
made the request shall pay the cost of compiling, copying, and	5902
mailing the documents. The information described in this division	5903
is a public record.	5904

(7) The board shall furnish those personal history records	5905
kept by the board to the secretary of state necessary for the	5906
purposes of certifying an election pursuant to section 111.30 of	5907
the Revised Code. The records provided pursuant to this division	5908
shall remain confidential while in the possession of the secretary	5909
of state.	5910

(F)(E) A statement that contains information obtained from	5911
the system's records that is certified and signed by an officer of	5912
the retirement system and to which the system's official seal is	5913
affixed, or copies of the system's records to which the signature	5914
and seal are attached, shall be received as true copies of the	5915
system's records in any court or before any officer of this state.	5916

Sec. 5505.041. All elections for retirant member and employee	5917
members of the state highway patrol retirement board shall be held	5918
under the direction of the board in accordance with rules adopted	5919
under section 111.30 of the Revised Code. A person who at the time	5920
of retirement is an employee member of the board is not eligible	5921
to become a retirant member of the board until three years after	5922
the person's retirement date. Service and disability retirants may	5923
vote in elections for the retirant member of the board.	5924
Contributing members may vote in elections for the employee member	5925
of the board.	5926

On certification of the election results under section 111.30	5927
of the Revised Code, the person elected as the retirant member of	5928
the board or an employee member of the board shall serve a	5929
four-year term beginning on the first day of August following the	5930
election.	5931

Sec. 5505.042. Except as provided in section 5505.043 of the	5932
Revised Code, any vacancy occurring in the term of the retirant	5933
member of the state highway patrol retirement board or an employee	5934
member of the board shall be filled by an election conducted in	5935
the same manner as other retirant member and employee member	5936
elections under section 5505.041 of the Revised Code. On	5937
certification of the election results under section 111.30 of the	5938
Revised Code, the retirant member or employee member elected shall	5939
hold office until the next board election that occurs not less	5940
than ninety days after the member's election.	5941

Sec. 5505.043. The state highway patrol retirement board is	5942
not required to hold an election for a position on the board as a	5943
retirant member, employee member, or vacancy for a retirant member	5944
or employee member if only one candidate has been nominated for	5945
the position or vacancy in accordance with rules governing the	5946
election adopted under section 111.30 of the Revised Code. The	5947
candidate shall take office as if elected. In the case of a	5948
retirant member or employee member, the term of office shall be	5949
four years beginning in August of the year the candidate was	5950
nominated. In the case of a vacancy, the candidate shall fill the	5951
unexpired term.	5952

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

5953

(1) "Campaign committee" means a candidate or a combination	5954
of two or more persons authorized by a candidate to receive	5955
contributions and in-kind contributions and make expenditures on	5956
behalf of the candidate.	5957

(2) "Candidate" means an individual who has been nominated in	5958
accordance with rules adopted under section 111.30 of the Revised	5959
Code for election to the state highway patrol retirement board or	5960
who is seeking to be elected to fill a vacancy on the board	5961
pursuant to section 5505.042 of the Revised Code.	5962

(3) "Contribution" means a loan, gift, deposit, forgiveness	5963
of indebtedness, donation, advance, payment, transfer of funds or	5964
transfer of anything of value including a transfer of funds from	5965
an inter vivos or testamentary trust or decedent's estate, and the	5966
payment by any person other than the person to whom the services	5967
are rendered for the personal services of another person, which	5968
contribution is made, received, or used for the purpose of	5969
influencing the results of an election to the state highway patrol	5970
retirement board under section 5505.041 or 5505.042 of the Revised	5971
Code or the results of an election to fill a vacancy on the board	5972
pursuant to section 5505.042 of the Revised Code. "Contribution"	5973
does not include:	5974

(a) Services provided without compensation by individuals	5975
volunteering a portion or all of their time on behalf of a person;	5976

(b) Ordinary home hospitality;

5977

(c) The personal expenses of a volunteer paid for by that	5978
volunteer campaign worker.	5979

(4) "Election day" means the following, as appropriate to the	5980
situation:	5981

(a) The last day that ballots for an election to the state	5982
highway patrol retirement board under section 5505.041 or 5505.042	5983
of the Revised Code may be returned in order for the ballot to be	5984
counted;	5985

(b) If, pursuant to section 5505.043 of the Revised Code, no	5986
election is held, the last day that ballots would have been	5987
required to be returned in order to be counted if an election was	5988
to be held under section 5505.041 or 5505.042 of the Revised Code.	5989

(5) "Expenditure" means the disbursement or use of a	5990
contribution for the purpose of influencing the results of an	5991
election to the state highway patrol retirement board under	5992
section 5505.041 or 5505.042 of the Revised Code or the results of	5993
an election to fill a vacancy on the board pursuant to section	5994
5505.042 of the Revised Code.	5995

(6) "Independent expenditure" means an expenditure by an	5996
individual, partnership, or other entity advocating the election	5997
or defeat of an identified candidate or candidates, that is not	5998
made with the consent of, in coordination, cooperation, or	5999
consultation with, or at the request or suggestion of any	6000
candidate or candidates or of the campaign committee or agent of	6001
the candidate or candidates. An independent expenditure shall not	6002
be construed as being a contribution. As used in division (A)(6)	6003
of this section:	6004

(a) "Advocating" means any communication containing a message	6005
advocating election or defeat.	6006

(b) "Identified candidate" means that the name of the	6007
candidate appears, a photograph or drawing of the candidate	6008
appears, or the identity of the candidate is otherwise apparent by	6009
unambiguous reference.	6010

(c) "Made in coordination, cooperation, or consultation with,	6011
or at the request or suggestion of, any candidate or the campaign	6012
committee or agent of the candidate" means made pursuant to any	6013
arrangement, coordination, or direction by the candidate, the	6014
candidate's campaign committee, or the candidate's agent prior to	6015
the publication, distribution, display, or broadcast of the	6016
communication. An expenditure is presumed to be so made when it is	6017
any of the following:	6018

(i) Based on information about the candidate's plans,	6019
projects, or needs provided to the person making the expenditure	6020
by the candidate, or by the candidate's campaign committee or	6021
agent, with a view toward having an expenditure made;	6022

(ii) Made by or through any person who is, or has been,	6023
authorized to raise or expend funds, who is, or has been, an	6024
officer of the candidate's campaign committee, or who is, or has	6025
been, receiving any form of compensation or reimbursement from the	6026
candidate or the candidate's campaign committee or agent;	6027

(iii) Made by a political party in support of a candidate,	6028
unless the expenditure is made by a political party to conduct	6029
voter registration or voter education efforts.	6030

(d) "Agent" means any person who has actual oral or written	6031
authority, either express or implied, to make or to authorize the	6032
making of expenditures on behalf of a candidate, or means any	6033
person who has been placed in a position with the candidate's	6034
campaign committee or organization such that it would reasonably	6035
appear that in the ordinary course of campaign-related activities	6036
the person may authorize expenditures.	6037

(7) "In-kind contribution" means anything of value other than	6038
money that is used to influence the results of an election to the	6039
state highway patrol retirement board under section 5505.041 or	6040
5505.042 of the Revised Code or the results of an election to fill	6041
a vacancy on the board pursuant to section 5505.042 of the Revised	6042
Code or is transferred to or used in support of or in opposition	6043
to a candidate and that is made with the consent of, in	6044
coordination, cooperation, or consultation with, or at the request	6045
or suggestion of the benefited candidate. The financing of the	6046
dissemination, distribution, or republication, in whole or in	6047
part, of any broadcast or of any written, graphic, or other form	6048
of campaign materials prepared by the candidate, the candidate's	6049
campaign committee, or their authorized agents is an in-kind	6050
contribution to the candidate and an expenditure by the candidate.	6051

(8) "Personal expenses" includes ordinary expenses for	6052
accommodations, clothing, food, personal motor vehicle or	6053
airplane, and home telephone.	6054

(B) Except as otherwise provided in division (D) of this	6055
section, each candidate who, or whose campaign committee, receives	6056
a contribution or in-kind contribution or makes an expenditure in	6057
connection with the candidate's efforts to be elected to the state	6058
highway patrol retirement board shall file with the secretary of	6059
state two complete, accurate, and itemized statements setting	6060
forth in detail the contributions, in-kind contributions, and	6061
expenditures. The statements shall be filed regardless of whether	6062
an election is held or, pursuant to section 5505.043 of the	6063
Revised Code, an election is not held. The statements shall be	6064
made on a form prescribed under section 111.30 of the Revised	6065
Code. Every expenditure shall be vouched for by a receipted bill,	6066
stating the purpose of the expenditures, that shall be filed with	6067
the statement; a canceled check with a notation of the purpose of	6068
the expenditure is a receipted bill for purposes of this division.	6069

The first statement shall be filed not later than four p.m.	6070
on the day that is twelve days before election day. The second	6071
statement shall be filed not sooner than the day that is eight	6072
days after election day and not later than thirty-eight days after	6073
election day. The first statement shall reflect contributions and	6074
in-kind contributions received and expenditures made to the close	6075
of business on the twentieth day before election day. The second	6076
statement shall reflect contributions and in-kind contributions	6077
received and expenditures made during the period beginning on the	6078
nineteenth day before election day and ending on the close of	6079
business on the seventh day after election day.	6080

(C) Each individual, partnership, or other entity who makes	6081
an independent expenditure in connection with the candidate's	6082
efforts to be elected to the state highway patrol retirement board	6083
shall file with the secretary of state two complete, accurate, and	6084
itemized statements setting forth in detail the independent	6085
expenditures. The statements shall be filed regardless of whether	6086
an election is held or, pursuant to section 5505.043 of the	6087
Revised Code, an election is not held. The statements shall be	6088
made on a form prescribed under section 111.30 of the Revised	6089
Code.	6090

The first statement shall be filed not later than four p.m.	6091
on the day that is twelve days before election day. The second	6092
statement shall be filed not sooner than the day that is eight	6093
days after election day and not later than thirty-eight days after	6094
election day. The first statement shall reflect independent	6095
expenditures made to the close of business on the twentieth day	6096
before election day. The second statement shall reflect	6097
independent expenditures made during the period beginning on the	6098
nineteenth day before election day and ending on the close of	6099
business on the seventh day after election day.	6100

(D) Each candidate who, or whose campaign committee, receives	6101
a contribution or in-kind contribution or makes an expenditure in	6102
connection with the candidate's efforts to be elected to fill a	6103
vacancy in the public employees retirement board pursuant to	6104
section 5505.042 of the Revised Code shall file with the secretary	6105
of state a complete, accurate, and itemized statement setting	6106
forth in detail the contributions, in-kind contributions, and	6107
expenditures. The statement shall be made on a form prescribed	6108
under section 111.30 of the Revised Code. Every expenditure shall	6109
be vouched for by a receipted bill, stating the purpose of the	6110
expenditures, that shall be filed with the statement; a canceled	6111
check with a notation of the purpose of the expenditure is a	6112
receipted bill for purposes of this division.	6113

The statement shall be filed within thirty-eight days after	6114
the day the candidate takes office. The statement shall reflect	6115
contributions and in-kind contributions received and expenditures	6116
made to the close of business on the seventh day after the day the	6117
candidate takes office.	6118

Sec. 5505.045. (A) No person shall knowingly fail to file a	6119
complete and accurate campaign finance statement or independent	6120
expenditure statement in accordance with section 5505.044 of the	6121
Revised Code.	6122

(B) No person, during the course of a person seeking	6123
nomination for, and during any campaign for, election to the state	6124
highway patrol retirement board, shall knowingly and with intent	6125
to affect the nomination or the outcome of the campaign do any of	6126
the following by means of campaign materials, an advertisement on	6127
radio or television or in a newspaper or periodical, a public	6128
speech, press release, or otherwise:	6129

(1) With regard to a candidate, identify the candidate in a	6130
manner that implies that the candidate is a member of the board or	6131
use the term "re-elect" when the candidate is not currently a	6132
member of the board;	6133

(2) Make a false statement concerning the formal schooling or	6134
training completed or attempted by a candidate; a degree, diploma,	6135
certificate, scholarship, grant, award, prize, or honor received,	6136
earned, or held by a candidate; or the period of time during which	6137
a candidate attended any school, college, community technical	6138
school, or institution;	6139

(3) Make a false statement concerning the professional,	6140
occupational, or vocational licenses held by a candidate, or	6141
concerning any position the candidate held for which the candidate	6142
received a salary or wages;	6143

(4) Make a false statement that a candidate or public	6144
official has been indicted or convicted of a theft offense,	6145
extortion, or other crime involving financial corruption or moral	6146
turpitude;	6147

(5) Make a statement that a candidate has been indicted for	6148
any crime or has been the subject of a finding by the Ohio	6149
elections commission without disclosing the outcome of any legal	6150
proceedings resulting from the indictment or finding;	6151

(6) Make a false statement that a candidate or official has a	6152
record of treatment or confinement for mental disorder;	6153

(7) Make a false statement that a candidate or official has	6154
been subjected to military discipline for criminal misconduct or	6155
dishonorably discharged from the armed services;	6156

(8) Falsely identify the source of a statement, issue	6157
statements under the name of another person without authorization,	6158
or falsely state the endorsement of or opposition to a candidate	6159
by a person or publication;	6160

(9) Make a false statement concerning the voting record of a	6161
candidate or public official;	6162

(10) Post, publish, circulate, distribute, or otherwise	6163
disseminate a false statement concerning a candidate, either	6164
knowing the same to be false or with reckless disregard of whether	6165
it was false or not, if the statement is designed to promote the	6166
election, nomination, or defeat of the candidate.	6167

Sec. 5505.046. The secretary of state, or any person acting	6168
on personal knowledge and subject to the penalties of perjury, may	6169
file a complaint with the Ohio elections commission alleging a	6170
violation of section 5505.045 of the Revised Code. The complaint	6171
shall be made on a form prescribed and provided by the commission.	6172

On receipt of a complaint under this section, the commission	6173
shall hold a hearing open to the public to determine whether the	6174
violation alleged in the complaint has occurred. The commission	6175
may administer oaths and issue subpoenas to any person in the	6176
state compelling the attendance of witnesses and the production of	6177
relevant papers, books, accounts, and reports. On the refusal of	6178
any person to obey a subpoena or to be sworn or to answer as a	6179
witness, the commission may apply to the court of common pleas of	6180
Franklin county under section 2705.03 of the Revised Code. The	6181
court shall hold contempt proceedings in accordance with Chapter	6182
2705. of the Revised Code.	6183

The commission shall provide the person accused of the	6184
violation at least seven days prior notice of the time, date, and	6185
place of the hearing. The accused may be represented by an	6186
attorney and shall have an opportunity to present evidence, call	6187
witnesses, and cross-examine witnesses.	6188

At the hearing, the commission shall determine whether the	6189
violation alleged in the complaint has occurred. If the commission	6190
determines that a violation of division (A) of section 5505.045 of	6191
the Revised Code has occurred, the commission shall either impose	6192
a fine under section 5505.99 of the Revised Code or enter a	6193
finding that good cause has been shown not to impose the fine. If	6194
the commission determines that a violation of division (B) of	6195
section 5505.045 of the Revised Code has occurred, the commission	6196
shall impose the fine described in section 5505.99 of the Revised	6197
Code, refer the matter to the appropriate prosecutor, or enter a	6198
finding that good cause has been shown to not impose a fine or	6199
refer the matter to the appropriate prosecutor.	6200

Sec. 5505.048. An employee member or retirant member of the	6201
state highway patrol retirement board who is charged with	6202
committing a felony, a theft offense as defined in section 2913.01	6203
of the Revised Code, or a violation of section 102.02, 102.03,	6204
102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42,	6205
2921.43, or 2921.44 of the Revised Code shall be suspended from	6206
participation on the board for the period during which the charges	6207
are pending. If the charges are dismissed, the member is found not	6208
guilty, or the charges are otherwise resolved in a manner not	6209
resulting in the member being convicted of or pleading guilty to	6210
an offense of that nature, the suspension shall end, and the	6211
member may participate on the board. If the member pleads guilty	6212
to or is convicted of the offense, the position of the member on	6213
the board shall be deemed vacant. A person who has pleaded guilty	6214
to or been convicted of an offense of that nature is ineligible	6215
for election to the office of employee member or retirant member	6216
of the state highway patrol retirement board.	6217

Sec. 5505.049. A person who served as an elected or appointed	6218
member of the state highway patrol retirement board for one or	6219
more entire fiscal years in fiscal years 2000, 2001, or 2002 is	6220
ineligible for re-election or reappointment to the board if the	6221
person has accepted reimbursements for travel and travel-related	6222
expenses from the board that have an annual average of more than	6223
ten thousand dollars for those fiscal years.	6224

Sec. 5505.062. The state highway patrol retirement board	6225
shall do all of the following:	6226

(A) In consultation with the Ohio ethics commission, review	6227
any existing policy regarding the travel and payment of travel	6228
expenses of members and employees of the state highway patrol	6229
retirement board and adopt rules in accordance with section	6230
5505.04 of the Revised Code establishing a new or revised policy	6231
regarding travel and payment of travel expenses;	6232

(B) If the board intends to award a bonus to any employee of	6233
the board, adopt rules in accordance with section 5505.04 of the	6234
Revised Code establishing a policy regarding employee bonuses;	6235

(C) Provide copies of the rules adopted under divisions (A)	6236
and (B) of this section to each member of the Ohio retirement	6237
study council;	6238

(D) Submit to the Ohio retirement study council a proposed	6239
operating budget, including an administrative budget for the	6240
board, for the next immediate fiscal year and adopt that budget	6241
not earlier than sixty days after it is submitted to the council;	6242

(E) Submit to the council a plan describing how the board	6243
will improve the dissemination of public information pertaining to	6244
the board.	6245

Sec. 5505.063. The state highway patrol retirement board	6246
shall, in consultation with the Ohio ethics commission, develop an	6247
ethics policy. The board shall submit this policy to the Ohio	6248
retirement study council for approval.	6249

The council shall review the policy and, if the council	6250
determines, upon the advice of the Ohio ethics commission, that	6251
the policy is adequate, approve the policy. If the council	6252
determines that the policy is inadequate, it shall specify the	6253
revisions to be made and the board shall submit a revised policy.	6254
If the council approves the revised policy, the board shall adopt	6255
it. If not, the board shall make any further revisions required by	6256
the council and adopt the policy.	6257

The board periodically shall provide ethics training to	6258
members and employees of the board. The training shall include	6259
training regarding the requirements and prohibitions of Chapter	6260
102. of the Revised Code and sections 2921.42 and 2921.43 of the	6261
Revised Code and any other training the board considers	6262
appropriate.	6263

The board shall establish a procedure to ensure that each	6264
employee of the board is informed of the procedure for filing a	6265
complaint alleging violation of Chapter 102. of the Revised Code	6266
or section 2921.42 or 2921.43 of the Revised Code with the Ohio	6267
ethics commission or the appropriate prosecuting attorney.	6268

Sec. 5505.064.  Each newly elected member of the state	6269
highway patrol retirement board and each individual appointed to	6270
fill a vacancy on the board, shall, not later than ninety days	6271
after commencing service as a board member, complete the	6272
orientation program component of the retirement board member	6273
education program established under section 171.50 of the Revised	6274
Code.	6275

Each member of the board who has served a year or longer as a	6276
board member shall, not less than twice each year, attend one or	6277
more programs that are part of the continuing education component	6278
of the retirement board member education program established under	6279
section 171.50 of the Revised Code.	6280

Sec. 5505.065.  (A) The state highway patrol retirement board	6281
shall designate a person who is a licensed state retirement system	6282
investment officer to be the chief investment officer for the	6283
state highway patrol retirement system. The board shall notify the	6284
division of securities of the department of commerce in writing of	6285
its designation and of any change in its designation within ten	6286
calendar days of the designation or change.	6287

(B) The chief investment officer shall reasonably supervise	6288
the licensed state retirement system investment officers and other	6289
persons employed by the state highway patrol retirement system	6290
with a view toward preventing violations of Chapter 1707. of the	6291
Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C.	6292
and following, the "Securities Act of 1933," 48 Stat. 74, 15	6293
U.S.C. and following, and the "Securities Exchange Act of 1934,"	6294
48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and	6295
regulations promulgated under those statutes. This duty of	6296
reasonable supervision shall include the adoption, implementation,	6297
and enforcement of written policies and procedures reasonably	6298
designed to prevent persons employed by the state highway patrol	6299
retirement system from misusing material, nonpublic information in	6300
violation of those laws, rules, and regulations.	6301

For purposes of this division, no chief investment officer	6302
shall be considered to have failed to satisfy the officer's duty	6303
of reasonable supervision if the officer has done all of the	6304
following:	6305

(1) Adopted and implemented written procedures, and a system	6306
for applying the procedures, that would reasonably be expected to	6307
prevent and detect, insofar as practicable, any violation by its	6308
licensed investment officers and other persons employed by the	6309
state highway patrol retirement system;	6310

(2) Reasonably discharged the duties and obligations	6311
incumbent on the chief investment officer by reason of the	6312
established procedures and the system for applying the procedures	6313
when the officer had no reasonable cause to believe that there was	6314
a failure to comply with the procedures and systems;	6315

(3) Reviewed, at least annually, the adequacy of the policies	6316
and procedures established pursuant to this section and the	6317
effectiveness of their implementation.	6318

(C) The chief investment officer shall ensure that securities	6319
transactions are executed in such a manner that the state highway	6320
patrol retirement system's total costs or proceeds in each	6321
transaction are the most favorable under the circumstances.	6322

For purposes of this division, no chief investment officer	6323
shall be considered to have failed to satisfy the officer's duty	6324
of best execution if the officer has done both of the following:	6325

(1) Adopted and implemented a written policy that outlines	6326
the criteria used to select broker-dealers that execute securities	6327
transactions on behalf of the state highway patrol retirement	6328
system, which criteria shall include all of the following:	6329

(a) Commissions charged by the broker-dealer, both in the	6330
aggregate and on a per share basis;	6331

(b) The execution speed and trade settlement capabilities of	6332
the broker-dealer;	6333

(c) The responsiveness, reliability, and integrity of the	6334
broker-dealer;	6335

(d) The nature and value of research provided by the	6336
broker-dealer;	6337

(e) Any special capabilities of the broker-dealer.

6338

(2) Reviewed, at least annually, the performance of	6339
broker-dealers that execute securities transactions on behalf of	6340
the state highway patrol retirement system.	6341

Sec. 5505.07.  (A) The state highway patrol retirement board	6342
may employ a secretary and secure the services of employees for	6343
the transaction of business of the state highway patrol retirement	6344
system. The	6345

Effective ninety days after the effective date of this	6346
amendment, the board may not employ a state retirement system	6347
investment officer, as defined in section 1707.01 of the Revised	6348
Code, who does not hold a valid state retirement system investment	6349
officer license issued by the division of securities in the	6350
department of commerce.	6351

The compensation of all persons engaged by the board and all	6352
other expenses of the board necessary for the proper operation of	6353
the pension fund shall be paid at such rates and in such amounts	6354
as the board approves. Every expense voucher of an employee,	6355
officer, or board member of the state highway patrol retirement	6356
system shall itemize all purchases and expenditures.	6357

(B) The clerical procedures required in the operation of the	6358
retirement system shall be performed by the staff of the secretary	6359
appointed by the board. The cost of such clerical procedures and	6360
the services performed by the secretary of the retirement system	6361
shall be paid by the retirement system.	6362

(C) The board shall appoint an actuary who shall be its	6363
technical advisor.	6364

(D) The board shall from time to time adopt such mortality	6365
and other tables of experience, and such rate or rates of	6366
interest, as are required in the proper operation of the	6367
retirement system.	6368

(E) The board shall determine by appropriate rules the	6369
service to be credited any member in any calendar year.	6370

The board shall perform other functions and adopt rules as	6371
required for the proper execution of Chapter 5505. of the Revised	6372
Code.	6373

Sec. 5505.122. If the Ohio retirement study council	6374
establishes a uniform format for any report the state highway	6375
patrol retirement board is required to submit to the council, the	6376
board shall submit the report in that format.	6377

Sec. 5505.99. (A) Whoever violates division (A) of section	6378
5505.045 of the Revised Code shall be fined not more than one	6379
hundred dollars for each day of the violation.	6380

(B) Whoever violates division (B) of section 5505.045 of the	6381
Revised Code shall be imprisoned for not more than six months or	6382
fined not more than five thousand dollars, or both.	6383

(C) Fines imposed by the Ohio elections commission under this	6384
section shall be paid into the Ohio elections commission fund	6385
created under section 3513.10 of the Revised Code.	6386

Section 2. That existing sections 102.02, 102.03, 102.06,	6387
117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01,	6388
171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38,	6389
742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22,	6390
1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46,	6391
3307.03, 3307.05, 3307.06, 3309.061, 3307.07, 3307.11, 3307.20,	6392
3309.03, 3309.05, 3309.06, 3309.07, 3309.09, 3309.14, 3309.22,	6393
5505.04, and 5505.07 of the Revised Code are hereby repealed.	6394

Section 3. Section 1707.162 of the Revised Code, as enacted	6395
by this act, shall take effect ninety days after the effective	6396
date of this section.	6397

Section 4. The amendment to sections 3307.05, 3307.06, and	6398
3307.07 of the Revised Code in this act shall not affect the term	6399
of any elected member of the State Teachers Retirement Board	6400
serving on the effective date of this section. Within ninety days	6401
after the effective date of this act, the governor shall appoint	6402
the initial additional retired teacher member position created by	6403
this act. The teacher member shall hold office until the next	6404
board election that occurs not less than ninety days after the	6405
appointment.	6406

Section 5.  Nothing in this act shall be construed to be a	6407
limitation of the Ohio Ethics Commission's authority,	6408
responsibility, and powers under Chapter 102. of the Revised Code	6409
as it existed immediately prior to the effective date of this act	6410
as applied to members and employees of the state retirement	6411
boards. Any authority, power, or responsibilities of the Ohio	6412
Ethics Commission expressly created by this act are in addition to	6413
any authority, power, or responsibilities of the Commission in	6414
effect immediately prior to the effective date of this act.	6415

Section 6. A member of a state retirement board who, pursuant	6416
to this act, is replaced on that board by an elected or appointed	6417
member shall remain in office until the replacement member is	6418
appointed or elected.	6419

Section 7.  Section 742.41 of the Revised Code is presented	6420
in this act as a composite of the section as amended by both Sub.	6421
H.B. 535 and Am. Sub. S.B. 180 of the 123rd General Assembly.	6422
Section 3307.20 of the Revised Code is presented in this act as a	6423
composite of the section as amended by both Sub. H.B. 535 and Am.	6424
Sub. S.B. 180 of the 123rd General Assembly. Section 3309.22 of	6425
the Revised Code is presented in this act as a composite of the	6426
section as amended by Sub. H.B. 535, Sub. S.B. 270, and Am. Sub.	6427
S.B. 180 all of the 123rd General Assembly. Section 5505.04 of the	6428
Revised Code is presented in this act as a composite of the	6429
section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of	6430
the 123rd General Assembly. The General Assembly, applying the	6431
principle stated in division (B) of section 1.52 of the Revised	6432
Code that amendments are to be harmonized if reasonably capable of	6433
simultaneous operation, finds that the composites are the	6434
resulting versions of the sections in effect prior to the	6435
effective dates of the sections as presented in this act.	6436